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Calendar No. 121
109th Congress Report
SENATE
1st Session 109-78
======================================================================
ENERGY POLICY ACT OF 2005
_______
June 9, 2005.--Ordered to be printed
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 10]
The Committee on Energy and Natural Resources having
considered the same, report favorably thereon an original bill
(S. 10) to enhance the energy security of the United States,
and for other purposes, and recommends that the bill do pass.
CONTENTS
Page
Purpose of the Measure........................................... 1
Summary of Major Provisions...................................... 2
Background and Need.............................................. 6
Legislative History.............................................. 10
Committee Recommendation and Tabulation of Votes................. 13
Section-by-Section Analysis...................................... 13
Cost and Budgetary Considerations................................ 57
Regulatory Impact Evaluation..................................... 57
Executive Communications......................................... 57
Additional Views................................................. 58
Changes in Existing Law.......................................... 61
Purpose of the Measure
The purpose of the measure is to provide a comprehensive
national energy policy that balances domestic energy production
with conservation and efficiency efforts to enhance the
security of the United States and decrease dependence on
foreign sources of fuel.
Summary of Major Provisions
Title I--Energy Efficiency. Title I provides for programs
to ensure that energy efficiency is a central focus of national
energy policy. The title addresses Federal and state energy
efficiency programs, provides funding for home weatherization,
establishes numerous efficiency standards for a variety of
consumer and commercial energy consuming products, requires
reduction in energy use in Federal facilities, establishes and
updates energy efficiency standards for public and assisted
housing, and requires the President to develop methods to save
1 million barrels of petroleum per day by 2015.
Title II--Renewable Energy. Title II creates programs to
expand the use of renewable sources of energy. The title
requires the Secretary of Energy to develop a detailed
inventory of the Nation's renewable energy resources. It also
renews and expands the Renewable Energy Production Incentive
for not-for-profit electric utilities and requires the Federal
government to try to increase its use of renewable energy to
7.5 percent of the total amount of energy consumed by 2013. A
major provision of the title requires that 8 billion gallons of
renewable fuel be used in motor vehicle fuel markets by 2012
and requires the Federal Government to expand its use of
ethanol and bio-diesel motor fuels.
Subtitle B directs the Secretary of Energy, in consultation
with the Secretary of the Interior, to assess and report to
Congress on projects with the greatest potential for reducing
dependence on fossil fuels used in the generation of
electricity, and for promoting distributed energy, in the U.S.-
affiliated insular areas. The subtitle would also authorize the
Secretary to provide technical and financial assistance, on a
matching basis with local utilities, for feasibility studies
and the implementation of those projects the Secretary
determines are feasible, and appropriate for implementation.
Subtitle C establishes two biomass grant programs to
encourage the removal of slash, brush, pre-commercial thinning
material and other non-merchantable forest biomass from Federal
lands and Indian reservations for biomass energy production.
Subtitle E addresses hydroelectric licensing and other
hydropower provisions. The licensing section requires the
resource agencies (Departments of the Interior, Commerce, and
Agriculture) to issue regulations establishing procedures for
on the record ``trial-type'' hearings on disputed issues of
material fact with respect to conditions or prescriptions
sought by Federal resource agencies to be imposed on
hydroelectric licenses. Any party to the Federal Energy
Regulatory Commission (FERC) licensing proceeding can initiate
the trial-type hearing. Once initiated, all disputed issues of
material fact must be considered in a single hearing, which is
to last no more than 90 days.
The Subtitle adds a new section to the Federal Power Act
providing for the adoption of alternative conditions and
prescriptions. These alternatives can be proposed by any party
to the FERC proceeding and must be adopted if the Secretary
determines that certain standards are met and concurs in the
judgment of the license applicant that the alternative
condition or prescription would cost significantly less or
result in improved operation of the project works for
electricity production. The Secretary of the applicable
resource agency is directed to provide a written statement for
the hearing record explaining the basis for the condition or
prescription selected and reason for not accepting a proposed
alternative. Such statement must demonstrate that the Secretary
gave equal consideration to a number of listed factors. If a
resource agency does not accept a license applicant's proposed
alternative and FERC finds the Secretary's condition or
prescription to be inconsistent with applicable law, FERC can
refer the dispute to FERC's dispute resolution service for a
non-binding advisory.
Subtitle E also conforms the treatment of disagreements
over fish and wildlife conditions for hydroelectric projects of
less than 5 MW in Alaska to the standards under section 10(j)
of the Federal Power Act. Finally, Subtitle E contains a
provision reducing fees payable for the use of Federal lands
with respect to the Flint Creek project in Montana.
Title III--Oil and Gas:
Subtitle A permanently authorizes the Strategic Petroleum
Reserve and other energy programs.
Subtitle B includes provisions relating to a program for
taking in-kind royalties on Federal oil and gas production,
establishes an archive system for certain geological and
geophysical data, addresses oil and gas leasing in the National
Petroleum Reserve-Alaska, establishes a science initiative for
the North Slope of Alaska, establishes a program to reclaim
orphaned, abandoned or idled wells, addresses alternate energy-
related uses of the Outer Continental Shelf (OCS), provides for
a comprehensive inventory of OCS oil and gas resources, and
provides incentives for production of oil and gas both on
Federal lands and off-shore on the OCS.
Subtitle C addresses administrative and permitting issues
to improve access to Federal lands for exploration and
production of oil and gas.
Subtitle D provides coastal impact assistance to coastal
states that help contribute to our nation's energy supply.
Subtitle E increases regulatory certainty for natural gas
infrastructure; promotes investment in needed storage;
increases penalties for violations of the Natural Gas Act and
Natural Gas Policy Act; addresses natural gas market
transparency, and provides additional market reforms.
Title IV--Coal. Title IV establishes programs to ensure
that coal remains a major component of national energy policy.
The title establishes a program to facilitate research,
development and deployment of advanced coal gasification and
combustion technologies for electric power generation. The
title also amends the Mineral Leasing Act to allow for more
efficient development of coal resources on Federal lands.
Title V--Indian Energy. Title V provides for programs,
funding assistance and structured consultation with the
Department of the Interior (DOI) and Department of Energy (DOE)
to ensure that the energy resources on Indian land continue to
be a major component of the Nation's energy supply should
tribes wish them to be. The title amends existing law to allow
tribes to submit Tribal Energy Resource Agreements to the DOI
and, subsequent to DOI's approval of those plans, enter into
leases, contracts and agreements with private and public
business partners in furtherance of those resource development
plans. The title authorizes the Federal Government to provide
loans, grants and loan guarantees to qualifying tribes for the
implementation of their Tribal Energy Resource Agreements and
authorizes $20 million annually for such endeavors through
2016. The title also requires two studies, makes the Dine Power
Authority, a Navajo Nation enterprise, eligible for Federal
funding and renews the Navajo Electrification Project through
2011.
Title VI--Nuclear. Title VI provides for programs to ensure
that nuclear energy continues as a major component of the
Nation's energy supply. Price-Anderson liability protection is
extended for both Nuclear Regulatory Commission (NRC) licensees
and DOE contractors for twenty years. Coverage is increased and
indexed for inflation, and non-profit contractors of the
Department are made subject to payment of penalties assessed
for nuclear safety violations. Title VI also provides for the
export of high enriched uranium to Canada, Belgium, France,
Germany or the Netherlands for the sole purpose of producing
medical isotopes until a low enriched uranium alternative is
commercially viable and available. Title VI also requires the
DOE to propose a permanent disposal facility to Congress for
Greater Than Class C waste, also known as sealed sources,
within one year of enactment. This title also amplifies
existing laws that contain prohibitions of nuclear exports to
countries identified by the Secretary of State as engaging in
State sponsored terrorism. Additionally, title VI establishes
that an advanced next generation nuclear power plant reactor
will be built at the Idaho National Laboratory to demonstrate
both electricity and hydrogen production. This new reactor will
feature improved safety, reduced waste, higher efficiency, and
increased proliferation resistance and physical security. This
research project is an advanced reactor hydrogen cogeneration
project to move America toward advanced nuclear energy power
plants and a hydrogen economy.
Title VII--Vehicles and Fuels. Title VII addresses the use
of alternative fuels by Federal and covered vehicle fleets by
ensuring greater use of alternative fuels, creating an
alternative mechanism for non-Federal fleets to comply with
petroleum use reduction requirements and requiring the
Secretary of Energy to provide a report to Congress on program
compliance. The title also creates a number of programs to
enhance energy efficiency and technology development in the
transportation sector.
Title VIII--Hydrogen. Title VIII reauthorizes and updates
the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990, which provides for basic hydrogen
energy research and development programs. The title also
authorizes new research and development programs for hydrogen
vehicle technologies and for use of hydrogen as a
transportation fuel. The title provides authorization for a
variety of programs to demonstrate hydrogen and fuel cells for
use in light- and heavy-duty vehicle fleets, stationary power
and international projects. The title requires Federal agencies
to consider how they can incorporate hydrogen and fuel cell
technologies into their missions, creates an interagency task
force, and requires a National Academy study of progress made
toward achieving the goals of the hydrogen program.
Title IX--Research and Development. Title IX provides the
research and development base underpinning the full range of
energy-related technologies. Subtitles of the title are devoted
to Energy Efficiency, Distributed Energy and Electric Energy
Systems, Renewable Energy, Nuclear Energy, Fossil Energy,
Science, Energy and Environment, and Management. Authorizations
are provided in each Subtitle for the programs described
therein. Broad goals are established to guide the research and
development activities of: diversifying energy supplies,
increasing energy efficiency, decreasing dependence on foreign
energy supplies, improving energy security, and decreasing
environmental impact. The Secretary is annually directed to
publish specific goals in major program areas consistent with
these broad goals.
Title X--Department of Energy Management. Title X provides
cost-sharing requirements for DOE research, development,
demonstration, and commercial application activities from non-
Federal sources. The title requires merit review of proposals,
and external technical review of Department Programs. The title
requires initiatives to improve technology transfer and small
business interactions. The title increases the number of
assistant secretaries from 6 to 8, and creates a new
Undersecretary for Science and Energy.
Title XI--Personnel and Training. Title XI requires the
Secretary of Energy to monitor energy workforce trends and,
where necessary, use grants, fellowships, traineeships or other
training programs to ensure a sufficient number of workers in
energy fields. The bill requires establishment of training
guidelines for electric energy industry personnel,
establishment of centers for building technologies and power
plant operations training, and increased activity by the DOE to
improve recruitment of under-represented groups into energy
fields of education and employment.
Title XII--Electricity. Title XII will reduce regulatory
uncertainty, promote transmission infrastructure development
and security, and increase consumer protections.
Subtitle A requires mandatory rules for operation to ensure
transmission grid reliability. Subtitle B provides limited
Federal backstop siting authority for electric transmission
lines in areas designated by the Secretary of Energy as
national interest transmission corridors. It also authorizes
FERC to issue siting permits if a State withholds approval
inappropriately. It would also provide FERC with eminent domain
authority for electric transmission infrastructure. Subtitle C
authorizes FERC to exercise limited jurisdiction over
unregulated transmitting utilities (such as municipals and
cooperatives) to ensure open access to the transmission grid.
It encourages voluntary RTO developments. It terminates FERC's
Proposed Rulemaking on Standard Market Design. It protects
transmission access for native load customers. Subtitle D
directs FERC to issue rules on transmission pricing policies.
It authorizes FERC to approve a participant funding cost
allocation plan, without regard to whether the applicant is in
an RTO, as long as it results in just and reasonable rates.
Subtitle E amends the Public Utility Regulatory Policies Act of
1978 (PURPA). It prospectively repeals the mandatory purchase
and sale from qualifying facilities requirements on electric
utilities if there is a competitive market. It amendsPURPA to
ensure that qualifying facilities are legitimate, commercially useful
facilities. It encourages states to promote net metering, smart
metering and distributed generation. Subtitle F provides consumer
protections through strengthened market transparency rules, increased
penalties, and prohibitions on manipulative practices. It directs the
Federal Trade Commission (FTC) to promulgate rules to increase consumer
protections. It creates an Office of Consumer Advocacy at the DOE. It
allows courts to prevent traders who manipulate markets from serving as
officers or directors of electric utility companies. It allows FERC to
consider validity of termination payment provisions in certain Western
Interconnection contracts. Subtitle G repeals the Public Utility
Holding Company Act of 1935 (PUHCA). It also amends section 203 of the
Federal Power Act giving FERC limited jurisdiction over transactions
valued over $10 million, including acquisitions of FERC jurisdictional
generation facilities. In addition to making a finding consistent with
the public interest, it requires FERC to make a finding that a merger
will not result in cross-subsidization to the detriment of the utility.
Subtitle H amends and adds definitions to the Federal Power Act.
Subtitle I makes technical changes in the Federal Power Act.
Title XIII--Studies. Title XIII provides for studies on a
variety of energy issues.
Title XIV--Incentives for Innovative Technologies. Title
XIV provides general requirements that the Secretary of Energy
must meet in granting loan guarantees. The title directs the
Secretary to offer loan guarantees for any new or significantly
improved energy technology for nearly all end-uses if the
technology avoids, reduces, or sequesters air pollutants or
greenhouse gases. The title also specifically authorizes loan
guarantees for a variety of Integrated Gas Combined Cycle
technologies.
Background and Need
Nearly five decades ago energy demand in the United States
began exceeding domestic supply. That trend has increased over
the years as the Nation has grown in population and expanded
its economy. Current DOE projections indicate that the
disparity between energy supply and demand will continue to
grow. The widening gap between supply and demand, accompanied
by reliance on foreign sources to close that gap, has created
profound concerns in the Congress over the Nation's energy
security. The supply and demand gap places pressure on the
market and leads to volatile prices, exacerbating economic
problems. Coupled with those concerns is the recognition that
meeting demand must be accomplished in an environmentally sound
manner. A combination of energy production, conservation,
efficiency, and development of new technologies is the bedrock
of a sound energy policy aimed at closing the supply and demand
imbalance. Such a policy is necessary to ensure the country's
continued growth and prosperity and to protect our national
security.
PRODUCTION
Today, U.S. oil production is at a 50-year low and
continues to decline, placing increasing importance on imports,
often from unstable regimes. Oil imports accounted for roughly
60 percent of U.S. consumption in 2002, and nearly a third of
the current trade deficit. Currently, the United States
consumes roughly 19 million barrels of oil per day (mmbd)--12
million in the transportation sector alone. Demand in the
transportation sector is projected to grow to more than 20
million barrels per day by 2025. The growing demand for
petroleum used in transportation is of particular concern to
the United States for a number of reasons, including energy
security issues related to increasing dependence on foreign
oil, and environmental concerns over emissions of air
pollutants and greenhouse gases resulting from increased oil
usage.
Projected growth in domestic production of natural gas and
coal provides a limited counterbalance to the dismal oil
outlook. Over the next 20 years, natural gas production is
expected to grow by 1.5 percent per year, and coal by 1.5
percent per year. Natural gas currently represents 24 percent
of all energy consumed in the U.S. and supplies nearly one-
fifth of all electricity generation. Coal remains the primary,
and most efficient, fuel for electricity generation, currently
accounting for over half of all electric generation in the
U.S., and will remain so through 2025. Even though production
is expected to grow in the two sectors, demand for natural gas
is projected to outpace supply, and neither fuel is able to
offset the overall gap between energy supply and energy demand
in the United States.
Despite the growing dependence on imports, the Nation has a
wealth of domestic resources that are currently untapped. The
United States currently has an estimated 22.4 billion barrels
of proven oil reserves--12th highest in the world--with over 65
percent of proven oil reserves concentrated in the Gulf of
Mexico and Alaska. A 1999 National Petroleum Council study
found that the lower 48 States, including the Gulf of Mexico,
hold a tremendous supply of natural gas (1,466 tcf). Obstacles
to development of these resources include regulatory hurdles,
price volatility, and lack of infrastructure. While the price
spikes in 2000 led to a significant increase in gas well
drilling activity in 2001, domestic gas producers have not
responded to recent higher prices as robustly. U.S. production
fell by 2.3 percent in 2002. World market prices for crude oil
remain high, but domestic producers need additional incentives
to encourage the development of available resources.
Resource development on onshore Federal land administered
by the Bureau of Land Management (BLM) provides 5 percent of
the Nation's oil production; 11 percent of its natural gas
production; 35 percent of its coal production; 20 percent of
its wind power production; and 48 percent of its geothermal
energy production. In addition to traditional sources of
energy, Federal lands provide significant renewable resources,
accounting for 17 percent of the Nation's hydropower, 20
percent of its wind power, and 48 percent of its geothermal
production. However, various regulatory restrictions and
processes hinder full development of all of these resources.
Production on Federal lands and in the OCS can be
encouraged through regulatory streamlining and incentives such
as royalty relief. Certain renewable energy sources have been
provided royalty relief to increase their economic viability.
Other energy sources such as geothermal and OCS oil and gas
production, still face a significant financial burden that
prevents increaseddevelopment. Hydropower projects on Federal
lands can take years to license, hampering long-term investment and
stability.
In addition to their potential for providing new domestic
energy production, Federal lands could also play an important
role in developing a comprehensive interstate delivery system
for the Nation's energy supplies. Streamlining the permitting
and siting of energy infrastructure investments on Federal
lands will add to the reliability of energy supplies and help
to reduce the cost of domestic production.
There are abundant energy resources available for
production on Indian lands. Development of those resources must
be encouraged.
Currently, nuclear power provides over 20 percent of our
electricity. Reauthorization of the liability and
indemnification provisions of the Price-Anderson Act is
critical for protection of consumers as well as stability in
the industry. The importance of continued investments in
nuclear energy cannot be overstated. Only nuclear and
hydroelectric power can provide significant levels of power
with zero air emissions. While renewables can and must play a
role in a diverse energy mix, only nuclear power offers
significant long-term potential to address global climate
concerns.
An important aspect of accessing available domestic energy
supplies will be the assurance that supplies are able to reach
the growing demand. A 1999 study published by the INGAA
Foundation estimates that $47.7 billion in new investment in
pipeline infrastructure is needed to deliver new gas supplies.
Billions of dollars need to be invested in the national
transmission grid to ensure reliability and to allow markets to
function. Siting challenges, including a lack of coordination
among States, impede the improvement of the electric system.
Regulatory uncertainty in the electricity industry also
hinders needed infrastructure investment. Lack of certainty as
to the viability of market structures and the financial
stability of market participants impedes access to and
increases the cost of capital for the electricity sector.
Uncertainty in the marketplace about the rules and regulations
that will govern generation and transmission facilities
contributes to financial instability and endangers reliability
of service.
Over the past fifteen years, energy policy has evolved
toward more open access to the transmission grid and increased
competition. The Energy Policy Act of 1992 facilitated the
development of a competitive electric sector by allowing non-
utility power producers to compete in wholesale markets.
Utilities were required to open their transmission lines to
these new competitors. These changes in the law allowed
development of the merchant generator and power marketer
sectors. In 1996, FERC issued Orders 888 and 889, which
required jurisdictional public utilities to file an open access
transmission tariff with FERC and encouraged the formation of
Independent System Operators. In December 1999, FERC issued
Order 2000, encouraging transmission owners to join voluntarily
Regional Transmission Organizations that would independently
operate the transmission system. In 2002, FERC proposed the
Standard Market Design (SMD) as a way to address alleged
continued discriminatory transmission practices. The SMD was
strongly opposed because of infringement on State commissions'
jurisdiction.
A balance between access to the transmission grid for the
benefit of competition and access to the transmission grid to
provide reliable, efficient service to retail consumers is the
appropriate goal of energy policy. Clear regulatory rules and
the minimization of barriers are required to achieve that goal.
CONSERVATION AND EFFICIENCY
In addition to increasing domestic supplies of energy,
reducing demand and using supplies wisely is an essential part
of a balanced national energy policy. According to the Energy
Information Administration, as energy prices increased between
1970 and 1986, energy intensity (measured by energy use per
dollar of GDP) declined at an average annual rate of 2.3
percent. About half of that decrease comes from efficiency
measures. Energy intensity is projected to continue its decline
at an average annual rate of 1.5 percent through 2025 as
continued efficiency gains and structural shifts in the economy
offset increasing energy demand.
One of the key roles the Federal Government plays in
conservation is ensuring the efficient operation of Federal
facilities. The annual energy bill for the Federal Government
is about $9.6 billion. However, through the Federal Energy
Management Program, the Federal Government spent $2.3 billion
less in real dollars for energy for its buildings in FY 2000
compared to FY 1985. The Energy Policy Act of 1992 set a 20
percent energy reduction goal (per square foot) for Federal
facilities by FY 2000 relative to FY 1985. Preliminary FEMP
data indicated that this goal was exceeded by 2.7 percent
additional savings relative to the FY 1985 baseline. The
current goals of the FEMP program, established in 1999 by
Executive Order 13123, are to reduce energy consumption in
Federal facilities by 30 percent per square foot in 2005 and 35
percent in 2010 relative to 1990 levels.
On the consumer side, efficiency standards for homes and
appliances have also added to the improved use of scarce energy
resources. The National Appliance Energy Conservation Act
(NAECA), enacted in 1987, provided the framework for
establishing minimum energy efficiency standards for more than
two dozen types of appliances and equipment. Congress expanded
the products covered by NAECA in 1988 and 1992. DOE estimates
that the 12 standards developed by the Department have saved
consumers over $25 billion in cumulative electricity costs. A
2001 study by the American Council for an Energy Efficient
Economy (ACEEE) estimated that standards in place through the
year 2000 reduced U.S. electricity use by 2.5 percent and
reduced peak demand by approximately 21,000 megawatts. There
are several appliances and equipment types not currently
covered by Federal standards that offer the significant energy
savings potential in the future. Additional incentives are
needed to encourage new development in these areas.
INNOVATION
The third aspect of a balanced national energy policy looks
to the long-term future. New sources of energy and improved
technologies for existing resources will lead to long-term
energysecurity. Research and development opportunities range
from new advanced nuclear technologies to improved conductivity of
transmission lines to improved efficiency of light bulbs.
President Bush announced a $1.2-billion Hydrogen Fuel
Initiative to develop hydrogen-powered fuel cells during his
State of the Union speech on January 28, 2003. This initiative
will develop the technology needed for commercially viable
hydrogen-powered fuel cells to power cars, trucks, homes, and
businesses. Central to the development of hydrogen as a fuel
source will be research into the technologies and
infrastructure needed to produce, store, and distribute
hydrogen fuel.
Nuclear cogeneration of hydrogen is a new opportunity for
nuclear power, along with deployment of the next generation of
nuclear reactors. New nuclear reactors offer the ability to
provide energy security, add to fuel and technology diversity,
and meet clean air goals. The next generation of reactors is
safer and more efficient, and is vital to the nation's energy
supply. A new and aggressive program into innovative nuclear
technologies can foster the development of a new generation of
nuclear powerplants to meet future demand.
Innovation for the future also includes improving on
technologies for existing fuel resources. New advances in the
oil and gas industry have led to less intrusive drilling,
improved success in drilling wells, and stronger stewardship of
the environment. Clean coal initiatives have resulted in
drastic reductions in emissions without limiting the ability of
coal to serve as the most reliable and efficient means of
electric generation. Looking to the future, clean coal research
will ensure that new powerplants meet high standards of
economic viability and environmental protection.
Continuing innovation also is crucial to improve the
economic viability of producing energy from new supplies of
woody biomass produced from treatments aimed at improving the
health of our forests on Federal and Indian lands. Federal land
managers and other experts have recommended removing some of
the slash, brush, pre-commercial thinnings and other non-
merchantable wood and plant material from forests to improve
forest health and reduce the threat of uncharacteristic
wildfire. But land managers have indicated that in many regions
of the country there currently are few economically viable
enterprises using this type of biomass and that this increases
the costs of forest restoration treatments. The two grant
programs authorized in Title II, Subtitle C, are designed to
encourage the production of energy from biomass produced from
restoration treatments on Federal and Indian lands and,
ultimately, to reduce the costs of those treatments.
The Committee believes that some of the newest, most
innovative technologies for energy production and use, those
that are cleaner and more efficient compared to existing
commercial technologies, need a jump-start to get to the
marketplace more quickly. The Committee believes that the
provisions contained in this legislation, especially when
combined with the tax provisions to be offered from the Finance
Committee, are the genesis for improving the national security
of this Nation, enhancing the environment, strengthening self-
government for Native American communities, decreasing
dependence on foreign sources of energy, aiding the economy,
and diversifying the energy base of the country.
Legislative History
During the 107th and 108th Congresses, both the Senate and
the House of Representatives passed comprehensive energy policy
legislation dealing with energy conservation and efficiency,
energy research and development, renewable, hydrogen, oil, gas,
coal, and nuclear energy resources, vehicle efficiency, and
electricity regulation and infrastructure.
During the 107th Congress, numerous measures were
introduced dealing with energy issues either on a comprehensive
or more limited basis. Both the Senate and the House of
Representatives passed comprehensive energy policy legislation
using H.R. 4, the Securing America's Future Energy Act of 2001,
as the primary legislative vehicle. The House of
Representatives passed H.R. 4 on August 2, 2001 and it was
placed on the Senate Calendar on September 4, 2001 without
reference to Committee. The Senate considered comprehensive
legislation in the context of Senate Amendment 2917, an
amendment in the nature of a substitute, offered by Senators
Daschle and Bingaman. The amendment was offered to S. 517, the
National Laboratories Partnership Improvement Act of 2001. The
Senate debated S. 517 on February 15, March 5, 6, 7, 8, 11, 12,
13, 14, 15, 19, 20, and 21, and April 8, 9, 10, 11, 16, 17, 18,
22, 23, 24, and 25, 2002 adopting approximately 125 amendments.
On April 25, 2002, the Senate passed H.R. 4 after agreeing to
Amendment 2917, as amended, striking the House-passed text of
H.R. 4 and inserting the text of S. 517, as amended. A
conference was agreed to and met on June 27, July 25, September
12, 19, 25, and 26, and October 2 and 3, but was unable to
resolve the differences between the two bodies before the 107th
Congress adjourned.
In the 108th Congress, the principal legislative vehicle
was H.R. 6, a bill to enhance energy conservation and research
and development, to provide for security and diversity in the
energy supply for the American people, and for other purposes.
The bill was introduced on April 7, 2003, but was not the
subject of any hearings in the House of Representatives. The
Committee of the Whole House on the State of the Union began
consideration of H.R. 6 on April 10, 2003, and the House of
Representatives passed it on April 11, 2003. H.R. 6 was placed
on the Senate Calendar on May 6, 2003, without reference to
committee.
The Committee conducted several hearings examining various
aspects of energy. On February 13, the Committee conducted a
hearing on Oil Supply and Prices; on February 25 on Natural Gas
Supply and Prices; on February 27 on Energy Production on
Federal Lands; on March 4 on the Financial Condition of the
Electricity Market; on March 6 on Energy Use in the
Transportation Sector; on March 11 on Energy Efficiency and
Conservation; and on March 27 on various legislative proposals
dealing with Electricity. The Committee held business meetings
on April 8, addressing title V--Renewable Energy, title VI--
Energy Efficiency, title VIII--Hydrogen, title X--Personnel and
Training, and title XIII--State Energy Programs; on April 9 to
consider title I--Oil and Gas and title II--Coal; on April 10
to consider title IV--Nuclear Matters; on April 29 to consider
title III--Indian Energy, title VII--Transportation Fuels, and
title IX--Research and Development; and on April 30 to consider
title XI--Electricity.
On April 30, 2003, the Committee voted to report favorably
an original bill. On April 30, 2003, the text of the original
bill, as ordered reported, was introduced by Chairman Domenici
as S. 14.
On May 1, 2003, S. 14 was read the second time and placed
on the Senate Legislative Calendar. On May 6, 2003, the
original bill was reported, with technical amendments, to the
Senate as S. 1005. S. Rept. 108-43.
On May 6, 2003, S. 14 was laid before the Senate by
unanimous consent. The Senate debated S. 14 on May 8, 9, and
13, and June 2, 3, 4, 5, 9, 10, 11, and 12, and July 24, 25,
28, 29, 30, and 31. Over the course of the debate, the Senate
agreed to approximately 20 amendments to S. 14. On July 31,
2003, in lieu of further action on S. 14, Senator Frist laid
H.R. 6 before the Senate by unanimous consent and introduced
Amendment 1537, which struck the text of the House-passed bill
and inserted the text of H.R. 4 from the 107th Congress, as
passed by the Senate on April 25, 2002. On July 31, 2003, the
Senate passed the House energy bill, H.R. 6, as amended by
Amendment 1537.
The Senate asked for, and the House agreed to, a
conference. The conference met on September 5 and November 17,
2003. On November 18, 2003 (legislative day November 17, 2003),
the conference report was filed. H. Rept. 108-375. The House
passed the conference report on November 18, 2003. The Senate
began consideration of the conference report on November 19,
2003. On November 21, 2003, the motion to end debate failed,
and the conference report was not agreed to by the Senate.
On February 12, 2004, Senator Domenici introduced S. 2095,
the Energy Policy Act of 2003, which consisted of the text of
the conference report on H.R. 6, with certain provisions
eliminated. On February 23, 2004, S. 2095 was placed on the
Senate Legislative Calendar. No further action was taken on S.
2095.
During the 109th Congress, the Committee conducted several
hearings examining various aspects of energy. On February 15,
the Committee conducted a hearing on the Future of Liquefied
Natural Gas: Siting and Safety; on March 8, the Committee
conducted a hearing on Power Generation Resource Incentives and
Diversity Standards; on April 12, the Committee conducted a
hearing on the Development of America's Oil Shale Resources;
and on April 26, the Committee conducted a hearing on the
Department of Energy's Nuclear Power 2010 Program. In addition,
the Committee conducted a series of meetings on issues to be
addressed in comprehensive energy legislation. On January 24,
the Committee met on Natural Gas; on March 10 and April 21, on
Coal; and on April 5, on Water Supply and Resource Management.
The Committee conducted five business meetings to consider
comprehensive energy policy legislation. On May 17, the
Committee considered title V, Indian Energy; title X,
Department of Energy Management; and title XI, Personnel and
Training. On May 18, the Committee considered title IV, Coal;
title VII, Vehicles and Fuels; title VIII, Hydrogen; and title
IX, Research and Development. On May 19, the Committee
considered title I, Energy Efficiency; and title XII,
Electricity. On May 25, the Committee considered title II,
Renewable Energy; title VI, Nuclear Matters; and title XVI,
Studies. On May 26, the Committee considered title III, Oil and
Gas; and title XIV, Incentives for Innovative Technology. At
the business meeting on May 26, 2005, the Committee on Energy
and Natural Resources voted to report favorably an original
bill.
Committee Recommendation and Tabulation of Votes
The Senate Committee on Energy and Natural Resources, in
open business section on May 26, 2005, by a majority vote of a
quorum present recommends that the Senate pass an original
bill, as described herein.
The rollcall vote on reporting the measure was 21 yeas, 1
nay as follows:
YEAS NAYS
Mr. Domenici Mr. Wyden
Mr. Craig
Mr. Thomas
Mr. Alexander
Ms. Murkowski
Mr. Burr
Mr. Martinez*
Mr. Talent*
Mr. Burns
Mr. Allen
Mr. Smith*
Mr. Bunning
Mr. Bingaman
Mr. Akaka
Mr. Dorgan*
Mr. Johnson*
Ms. Landrieu
Mrs. Feinstein
Ms. Cantwell
Mr. Corzine*
Mr. Salazar
* Indicates voted by proxy.
Section-by-Section Analysis
Section 1. Short Title
Section 1 is self-explanatory.
Section 2. Definitions
Section 2 is self-explanatory.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Section 101. Energy and water saving measures in congressional
buildings
Section 101 establishes requirements for energy and water
savings in Congressional Buildings.
Section 102. Energy management requirements
Section 102 establishes new energy conservation goals for
Federal buildings. The section changes the baseline for
measuring Federal energy performance from 1985 to 2004 and
requires a 20 percent improvement over 2004 levels by 2015. The
section provides exclusions from these requirements under
certain conditions and directs the Secretary to issue
guidelines that establish criteria for excluding buildings from
these requirements. Agencies are authorized to retain funds
appropriated for energy expenditures that are not spent because
of energy savings in agency buildings and to use those funds
for energy efficiency and renewable energy projects.
Section 103. Energy use measurement and accountability
In order to encourage greater energy efficiency and energy
cost reduction by Federal agencies section 103 requires Federal
buildings to be metered or sub-metered by October 1, 2012,
using advanced meters, to the maximum extent practicable.
Agencies must also develop plans to use real-time electricity
consumption data to reduce energy costs and consumption.
Section 104. Procurement of energy efficient products
Section 104 requires Federal agency managers to purchase
highly energy efficient products for use by those agencies.
Section 105. Energy savings performance contracts
Section 105 extends the Energy Savings Performance
Contracts program through FY 2016.
Section 106. Voluntary commitments to reduce industrial energy
intensity
Section 106 encourages business and industry to enter into
voluntary agreements with the DOE to reduce energy intensity by
not less than 2.5 percent annually.
Section 107. Federal building performance standards
Section 107 requires the Secretary to revise Federal
building energy efficiency performance standards.
Section 108. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete
Section 108 requires Federal agencies to fully implement
all procurement requirements and incentives that provide for
the use of cement and concrete incorporating recovered mineral
component in cement or concrete projects.
Subtitle B--Energy Assistance and State Programs
Section 121. Weatherization assistance
Section 121 authorizes the expenditure of $1.23 billion for
Weatherization Assistance for fiscal years 2006 through 2008.
Section 122. State energy programs
Section 122 requires the Secretary to assist States in
reviewing and revising state energy conservation plans and in
establishing State energy efficiency goals.
Section 123. Energy efficient appliance rebate programs
Section 123 provides funding for State grant programs to
provide rebates to consumers purchasing residential Energy Star
products. It authorizes $50 million for each of fiscal years
2006 through 2010.
Section 124. Energy efficient public buildings
Section 124 provides for grants to States to assist units
of local government in improving the efficiency of public
buildings and facilities.
Section 125. Low income community energy efficiency pilot program
Section 125 allows the Secretary to provide grants to units
of local government, private or non-profit community
development organizations, and economic development entities of
Indian tribes to improve energy efficiency, develop
alternative, renewable and distributed energy supplies and to
increase energy conservation in low-income rural and urban
communities.
Section 126. State technologies advancement collaborative
Section 126 directs the Secretary, in cooperation with the
States, to establish a 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.
Section 127. Model building energy code compliance grant program
Section 127 directs the Secretary to carry out a program to
provide grants to each State that the Secretary determines,
with respect to new buildings in the State, achieves at least a
90-percent rate of compliance (based on energy performance)
with the most recent model building energy codes. Funds may be
used to carry out activities relating to the implementation of
building energy codes and building practices that exceed
efficiency requirements of the most recent model building
codes. It authorizes the expenditure of $25 million for each of
fiscal years 2006 through 2010.
Subtitle C--Energy Efficient Products
Section 131. Energy star program
Section 131 establishes a voluntary program within the DOE
and the Environmental Protection Agency (EPA) 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. The section requires
regular updating of Energy Star requirements through a
transparent process that includes solicitation of comments from
interested parties prior to establishment of new Energy Star
categories, specifications or criteria along with responses to
such comments; and allows 12 months of lead time before such
changes take effect unless such time period is waived or
reduced by mutual consent between EPA or DOE and the affected
parties.
Section 132. HVAC maintenance consumer education program
Section 132 directs the Secretary to 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. Additionally,
the section authorizes the Small Business Administration to
work with the DOE and EPA to provide energy efficiency
information to small business.
Section 133. Public energy education program
Section 133 directs the Secretary to convene an
organizational conference for the purpose of establishing an
ongoing, self-sustaining national public energy education
program.
Section 134. Energy efficiency public information initiative
Section 134 directs the Secretary to carry out a
comprehensive national program, including advertising and media
awareness to inform consumers about the need to reduce energy
consumption, the benefits to consumers of reducing energy
consumption, the importance of low energy costs to economic
growth and job formation, and practical, cost-effective
measures consumers can take to reduce consumption of energy.
$90 million is authorized for each of fiscal years 2006 through
2010.
Section 135. Energy conservation standards for additional products
Section 135 establishes energy conservation standards and
testing requirements for the following products: illuminated
exit signs; torchiere lighting fixtures; distribution
transformers; traffic and pedestrian signals; commercial unit
heaters; medium base compact fluorescent lamps; dehumidifiers;
pre-rinse spray valves; and mercury vapor lamp ballasts. The
section also directs the DOE to prescribe standards for:
refrigerated beverage vending machines; suspended ceiling fans
and the standby power mode of battery chargers and external
power supplies. The legislative standards reflect consensus
agreements that have been negotiated by the trade associations
representing the manufacturers of the products and
environmental, energy efficiency and consumer groups. The
section authorizes the Secretary to set standards for
electricity use for residential furnace fans, to set more than
one standard for a product that serves more than one function,
and, under specified conditions, to use an expedited rulemaking
process to establish a standard. Finally, the section provides
that existing State and local standards for a new product added
by the section are not preempted until the Federal standards
for such product goes into effect.
Section 136. Energy conservation standards for commercial equipment
This section establishes conservation standards and testing
requirements for: commercial air conditioning and heat pumps;
commercial refrigerators and freezers; commercial clothes
washers; and commercial ice makers. The standards reflect
agreements that have been negotiated by the trade associations
representing the manufacturers of the products and
environmental, energy efficiency, and consumer groups.
Section 137. Expedited rulemaking
Section 137 amends the Energy Policy and Conservation Act
to make conforming changes related to the expedited rulemaking
in subsection 135.
Section 138. Energy labeling
Section 138 directs the FTC to undertake a rulemaking to
consider the effectiveness of the consumer products labeling
program in assisting consumers in making purchasing decisions
and improving energy efficiency; and changes to the labeling
rules (including categorical labeling) that would improve the
effectiveness of consumer product labels and directs the
Secretary or the FTC to prescribe labeling requirements for
products for which standards are set by rule or by statute in
section 135.
Section 139. Energy efficient electric and natural gas utilities study
Section 139 directs the Secretary, in consultation with the
National Association of Regulatory Utility Commissioners and
the National Association of State Energy Officials, to 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 utilities
subject to State regulation and non-regulated utilities. This
section also requires the Secretary to report the findings of
the study and any recommendations on model policies to promote
energy efficiency programs.
Section 140. Energy efficiency pilot program
Section 140 directs the Secretary to 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 States for planning and adopting statewide programs
that encourage energy efficiency and energy consumption
reductions. States with adopted programs may use funds for
expanding and improving their programs. It authorizes $5
million in each of fiscal years 2006 through 2010.
Section 141. Energy efficiency resource programs
Section 141 amends the Public Utilities Regulatory Policy
Act of 1978 to require State regulatory bodies, within 3 years
after enactment, to consider implementing energy efficiency or
other demand reduction programs.
Subtitle D--Measures To Conserve Petroleum
Section 151. Reduction of dependence on imported petroleum
Section 151 directs the President to develop and implement
measures in end-uses throughout the economy of the United
States sufficient to reduce total demand for petroleum in the
United States by 1,000,000 barrels per day. It requires the
President to report annually on progress toward meeting that
goal.
Subtitle E--Energy Efficiency in Housing
Section 161. Public housing capital fund
Section 161 allows the Public Housing Capital Fund to
include use for certain improvements for energy efficiency,
including integrated utility management and capital planning
and third party contracts similar to Energy Savings Performance
Contracts (ESPCs).
Section 162. Energy efficient appliances
Section 162 requires public housing agencies to purchase
Energy Star or FEMP-designated products where cost-effective.
Section 163. Energy efficiency standards
Section 163 updates efficiency standards used in the
Cranston-Gonzales National Affordable Housing Act low-income
housing programs to current best codes and practices.
Section 164. Energy strategy for HUD
Section 164 requires the Department of Housing and Urban
Development to develop and implement an integrated energy
strategy for public and assisted housing and requires a report
to Congress and updates of the report every two years.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
Section 201. Assessment of renewable energy resources
Section 201 directs the Secretary of Energy to publish a
report, based on his most recent assessment, containing a
detailed inventory of the available quantity and
characteristics of renewable energy resources in the United
States.
Section 202. Renewable energy production incentive
Section 202 extends funding authorization for incentive
programs for producing electricity from renewable energy
sources, expands eligibility to cooperatives and municipal
utilities, and includes landfill gas as an eligible energy
resource. The section also provides that if funds are not
available for full payments in a given calendar year, 60
percent of available funds shall be assigned to solar, wind,
geothermal, and closed-loop biomass.
Section 203. Federal purchase requirement
Section 203 requires the Federal Government to try to
purchase not less than 3 percent renewable electric energy in
fiscal years 2007 through 2009, increasing to not less than 7.5
percent renewable electric energy in fiscal year 2013 and
thereafter. The section also provides a double credit for
renewable electric energy produced and used on-site at a
Federal facility, as well as for renewable energy produced on
Federal or Indian lands and used at a Federal facility.
Section 204. Renewable content of motor vehicle fuel
Section 204 mandates that motor vehicle fuel sold or
dispensed to consumers in the contiguous United States contain
renewable fuel as defined by this section. Under the mandate 4
billion gallons of renewable fuel must be used in 2006 rising
to 8 billion gallons in 2012. After 2012 the annual volume of
renewable fuel must be at least equal to the percentage of
renewable fuel, relative to the total number of gallons of
gasoline introduced into commerce in 2012. The section also
contains provisions relating to participation by small
refiners, opportunities for a State or States to waive the
program requirements, and provisions for a fuel producer credit
and trading program.
Section 205. Federal agency ethanol-blended gasoline and biodiesel
purchasing requirement
Section 205 requires the head of each Federal agency to
ensure that the agency purchases ethanol-blended gasoline
containing at least 10 percent ethanol rather than nonethanol-
blended gasoline for use in agency vehicles. The section also
requires that Federal agencies purchase biodiesel for diesel
fueled vehicles based on a schedule set forth in this section.
Section 206. Data collection
Section 206 requires the Administrator of the Energy
Information Administration of the DOE to conduct and publish
the results of a survey of renewable fuels demand in the motor
vehicle fuels market in the United States on a monthly basis.
Section 207. Sugar cane ethanol program
Section 207 directs the Secretary of Energy to establish a
multi-State project designed to study the production of ethanol
from cane sugar, sugar cane, and sugar cane byproducts.
Section 208. Modification of Commodity Credit Corporation bioenergy
program
Section 208 is self-explanatory.
Section 209. Advanced biofuel technologies program
Section 209 directs the Secretary of Energy, in
consultation with the Secretary of Agriculture, to establish a
program to demonstrate advanced technologies for the production
of alternative transportation fuels.
Section 210. Assistance for rural communities with high energy costs
Section 210 permits the Secretary and the Administrator of
the Rural Utilities Service to use authorities provided
pursuant to the 1936 Rural Electrification Act and the
Consolidated Farm and Rural Development Act, including the
deferral, extension, refinancing, restructuring, and reduction
of loans made under those Acts, to make grants available to
existing rural electric projects in Alaska. The purpose of such
grants is to aid electric borrowers serving rural Alaskan
communities to reduce consumer rates, maintain reliable
service, preserve the economic feasibility of an electric
system, and avoid default.
Subtitle B--Insular Energy
Section 221. Definitions
Section 221 defines the terms used in the subtitle.
Section 222. Assessment
Section 222 authorizes the Secretary of Energy, in
consultation with the Secretary of the Interior, to conduct an
assessment of the energy needs of the U.S.-affiliated insular
areas and submit a report within one year of enactment to
Congress that evaluates the strategies or projects with the
greatest potential for reducing the dependence of each insular
area on imported fossil fuels asused for the generation of
electricity, and, when there is a significant need for distributed
energy, identify promising strategies and projects for meeting that
need.
Section 223. Project feasibility studies
Section 223 authorizes the Secretary of Energy, in
consultation with the Secretary of the Interior, and upon the
request of the local electric utility and a commitment by the
utility to at least ten percent of the cost, to conduct a
feasibility study of a project to implement a strategy or
project identified under section 222 as having the potential
to--(1) significantly reduce the dependence of an insular area
on imported fossil fuels; or (2) provide needed distributed
generation to an insular area.
Section 224. Implementation
Section 224 authorizes, upon a determination by the
Secretary of Energy, in consultation with the Secretary of the
Interior, that a project is feasible under section 223, and a
commitment by the local electric utility to operate and
maintain the project, such technical and financial assistance
as the Secretary determines is appropriate for the
implementation of the project.
Section 225. Authorization of appropriations
Section 225 authorizes to be appropriated to the Secretary
of Energy: (1) $500,000 for the completion of the assessment
under section 222; (2) $500,000 for each fiscal year for
project feasibility studies under section 223; and (3)
$5,000,000 for each fiscal year for project implementation
under section 224. No insular area may receive more than 20
percent of the total funds made available during any 3-year
period unless the Secretary determines that providing funding
in excess of that percentage best advances existing
opportunities to meet the objectives of this subtitle.
Subtitle C--Biomass Energy
Section 231. Definitions
Section 231 defines the terms used in the subtitle.
Section 232. Biomass commercial utilization grant program
Section 232 authorizes the Secretary of the Interior and
the Secretary of Agriculture to make grants to offset the cost
of purchasing biomass from hazardous fuels reduction and other
forest restoration projects on Federal or Indian lands to
produce electricity, heat, or transportation fuels. This
section authorizes appropriations of $12.5 million to each
Secretary for each of fiscal years 2006 through 2010.
Section 233. Improved biomass utilization program
Section 233 authorizes the Secretary of the Interior and
the Secretary of Agriculture to make grants to offset the cost
of developing or researching proposals to improve or add value
to the use of biomass from hazardous fuels reduction and other
forest restoration projects. This section authorizes
appropriations of $12.5 million to each for each of fiscal
years 2006 through 2010.
Section 234. Report
Section 224 directs the Secretaries of the Departments of
the Interior and Agriculture to provide a joint report on the
interim results of the program no later than 3 years after the
date of enactment.
Subtitle D--Geothermal Energy
Section 241. Leasing procedures
Section 241 modifies the Geothermal Steam Act to require
that all lands to be leased be made available on a competitive
basis. If no competitive interest in the lands exists, they can
be made available for leasing on a noncompetitive basis for a
period of two years. Pending lease applications are
grandfathered. The mechanics for this system of competitive
leasing is patterned after the Federal onshore oil and gas
leasing program.
Section 242. Direct use
Section 242 directs the Secretary to issue a schedule of
fees (as opposed to royalties) for direct use geothermal
(geothermal used for a purpose other than commercial generation
of electricity and not sold--e.g., geothermal steam used for
greenhouses). This section also gives the Secretary discretion
to provide an exception from the requirement for competitive
leasing for land to be used exclusively for direct use if the
Secretary follows certain procedures and determines that no
competitive interest exists.
Section 243. Royalties
Section 243 requires the Secretary to issue a rule within
one year to provide a simplified methodology for calculating
royalties on Federal geothermal resources. It requires the
Secretary to consider a methodology based on gross proceeds
from the sale of electricity and to ensure that the final
regulation results in the same level of royalty revenues over a
10-year period as the current regulation. This section also
provides that existing leases can be modified on the
application of the lessee to conform to the schedule of fees
for leases for direct use and to the new simplified methodology
for all other leases.
Section 244. Geothermal leasing and permitting on Federal land
Section 244 requires the Secretaries of the Interior and
Agriculture to enter into a memorandum of understanding
regarding leasing and permitting for geothermal development of
public lands and National Forest System lands. It requires a
joint data retrieval system for tracking lease and permit
applications.
Section 245. Assessment of geothermal energy potential
Section 245 requires the Secretary to update the 1978
Assessment of Geothermal Resources.
Section 246. Cooperative or unit plans
Section 246 clarifies the authority of the Secretary with
respect to the creation of cooperative or unit agreements for
the development of Federal geothermal resources.
Section 247. Royalty on byproducts
Section 247 provides that the royalty on any byproduct
mineral be at the applicable rate contained in the Mineral
Leasing Act.
Section 248. Lease duration and work commitment requirements
Section 248 requires the Secretary to establish payments at
a level that ensures diligent development of the lease.
Section 249. Annual rental
Section 249 increases the rentals required to be paid on
Federal geothermal leases, escalating over time from $1 (for
noncompetitive leases) and $2 (for competitive leases) to $5
per acre. This section also modifies the provisions relating to
termination of a lease for failure to pay rental.
Section 250. Advanced royalties required for cessation of production
Section 250 provides that a lease will remain in effect if
production ceases after coming into production if the lessee
pays for an aggregate of not more than 10 years an advance
royalty that is the monthly average royalty paid during the
period of production. The advance royalty can be credited
against future production royalties. There is an exception in
cases where the production ceases due to a force majeure.
Section 251. Leasing and permitting on Federal land withdrawn for
military purposes
Section 251 requires the Secretaries of the Interior and
Defense to submit a joint report on leasing and permitting
activities for geothermal energy on Federal land withdrawn for
military purposes.
Section 252. Technical amendments
Section 252 makes a series of technical amendments to the
Geothermal Steam Act of 1970, replacing the term ``geothermal
steam and associated resources'' with ``geothermal resources''
throughout the Act, and providing section titles for each
section of the Act.
Subtitle E--Hydroelectric
Section 261. Alternative conditions and fishways
Subsection (a) amends section 4(e) of the Federal Power Act
to provide that the license applicant and any party to the
proceeding is 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
4(e) conditions. All disputed issues of material fact raised by
any party are to be determined in a single trial-type hearing
to be conducted within a time frame established by FERC for
each license proceeding. Within 90 days of the date of
enactment, the Secretaries of the Interior, Commerce, and
Agriculture are directed to establish jointly by rule
procedures for the expedited trial-type hearing, including an
opportunity to undertake discovery and cross-examine witnesses,
in consultation with the FERC.
Subsection (b) amends section 18 of the Federal Power Act
to provide the same trial-type hearing requirements with
respect to prescriptions sought by a resource agency.
Subsection (c) amends the Federal Power Act by adding a new
section addressing alternative conditions and prescriptions. It
allows the license applicant or any other party to the license
proceeding to propose an alternative condition or prescription.
The subsection directs the Secretary of the resource agency to
accept the proposed alternative condition or prescription 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 the
alternative condition provides for the adequate protection and
utilization of the reservation (or in the case of a
prescription, that the alternative will be no less protective
than the fishway initially proposed by the Secretary) and the
Secretary concurs with the license applicant's judgment that
the alternative condition or prescription will either cost
significantly less to implement or result in improved operation
of the project works for electricity production. The
concurrence by any Secretary of the license applicant's
judgment on costs and project operations should be based upon a
determination that the judgment is supported by substantial
evidence. The Secretary must submit into the record a written
statement explaining the basis for any condition or
prescription selected and the reason for not accepting any
proposed alternative condition or prescription. The written
statement must demonstrate that the Secretary gave equal
consideration to a number of specified factors. The subsection
provides that if the Secretary does not accept an applicant's
proposed alternative condition or prescription and the FERC
finds the resource agency's condition or prescription to be
inconsistent with applicable law, the FERC may refer the
dispute to its Dispute Resolution Service for a non-binding
advisory. The Committee does not intend section 261 to shift
the burden of proof or to change the standard of proof required
by section 556(d) of title 5, United States Code, to support an
agency determination.
Section 262. Alaska State jurisdiction over small hydroelectric
projects
The provision is self-explanatory.
Section 263. Flint Creek hydroelectric project
The provision is self-explanatory.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
Section 301. Permanent authority to operate the Strategic Petroleum
Reserve and other energy programs
Section 301 permanently authorizes the Strategic Petroleum
Reserve (SPR). The SPR was established pursuant to the
authority granted under the Energy Policy and Conservation Act
(EPCA). This section authorizes the Secretary of Energy to
expeditiously as practicable, without incurring excessive cost
or appreciably affecting the price of gasoline or heating oil
to consumers, acquire petroleum sufficient to fill the SPR to
the one billion barrel capacity authorized by the EPCA.
Section 301 also permanently authorizes the Northeast Home
Heating Oil Reserves.
Section 302. National oilheat research alliance
Section 302 amends the Energy Act of 2000 (P.L. 106-469; 42
U.S.C. 6201) to extend the authorization for the National
Oilheat Research Alliance (NORA) until nine years after the
date on which NORA was established.
Subtitle B--Production Incentives
Section 311. Definition of Secretary
Section 311 is self-explanatory.
Section 312. Program on oil and gas royalties-in-kind
Subsection (a) provides that the section applies to all
royalty-in-kind (RIK) accepted by the Secretary under specified
statutes.
Subsection (b) provides that all royalty accruing for oil
or gas under a Federal lease issued under those authorities
shall, on the demand of the Secretary, be paid in oil or gas
beginning on the date of enactment and sets forth other
requirements applicable to RIK payments. The subsection gives
the Secretary the authority to retain and use a portion of the
revenues generated from RIK sales to pay costs of transporting,
processing, or disposing of the royalty production and for
salaries and administrative costs of the RIK program.
Subsection (c) provides that if a lessee, pursuant to an
agreement with the United States or if provided in the lease,
processes the royalty gas or delivers the oil or gas at a point
not on or adjacent to the lease area, the Secretary shall
compensate the lessee in a manner articulated in the
subsection.
Subsection (d) provides that the Secretary may receive oil
or gas royalties-in-kind only if the Secretary determines that
doing so provides benefits to the United States greater than or
equal to those likely to have been received had royalties been
taken in value.
Subsections (e), (f), (g), (h), (i) and (j) are self-
explanatory.
Section 313. Marginal property production incentives
Subsection (a) defines ``marginal property'' as set forth
in the section, until such time as the Secretary issues
regulations that prescribe a different definition, with respect
to Federal onshore oil and gas leases.
Subsection (b) sets forth conditions for the reduction of
the royalty rate on such properties.
Subsection (c) sets forth the reduced royalty rate.
Subsection (d) sets forth the authority for the termination
of the reduced royalty rate.
Subsection (e) explicitly provides authority for the
Secretary of the Interior to prescribe different standards for
royalty relief by regulation. The subsection directs the
Secretary to accept and consider petitions for royalty relief
for marginal properties on the OCS under existing authorities
and to act on such petitions within 90 days.
Subsection (f) is self-explanatory.
Section 314. Incentives for natural gas production from deep wells in
the shallow waters of the Gulf of Mexico
Section 314 is self-explanatory.
Section 315. Royalty relief for deep water production
Section 315 is self-explanatory.
Section 316. Alaska offshore royalty suspension
Section 316 authorizes the Secretary of the Interior under
the Outer Continental Shelf Lands Act to give royalty relief to
existing, non-producing leases for production in Alaska
frontier regions, as specified in the section.
Section 317. Oil and gas leasing in the National Petroleum Reserve in
Alaska
Subsection (a) transfers authorities and is self-
explanatory.
Subsection (b) restates the requirement of current law that
the Secretary conduct an expeditious program of competitive oil
and gas leasing in the NPRA. It states that the Secretary
should prevent to the extent practicable and mitigate adverse
effects from leasing and development activities. It also states
that the Secretary minimize to the extent practicable the
impact to surface resources and consolidate facilities.
Subsection (b) does not present a new standard for the leasing
program conducted under this section, but rather is a further
exposition of existing law. It does not express the view of
Congress as to whether the BLM has or has not met the standard.
The section provides that leases be for an initial period of
not more than 10 years and so long thereafter as oil or gas is
produced from the lease in paying quantities or drilling or
reworking operations, as approved by the Secretary, are
conducted on the leased land. The section provides that at the
end of the primary term of the lease, the Secretary shall renew
the lease for one additional 10-year term if certain standards
as set forth in the subsection are met and the lessee pays a
renewal fee of $100 per acre. The subsection authorizes the
Secretary to unitize leases and sets forth requirements
relating to unit agreements. The section conforms the
Secretary's authority to waive, suspend or reduce royalties on
the NPRA with the authority under the Mineral Leasing Act with
respect to onshore oil and gas leasing in the lower 48 states.
The provision requires the Secretary to waive administration of
leases where the Native Regional Corporation owns the
subsurface estate; however, the provision does not limit the
authority of the Secretary to manage the federally-owned
surface estate within the NPRA.
Subsection (c) makes conforming amendments.
Section 318. North Slope science initiative
Subsection (a) establishes a North Slope Science Initiative
to implement efforts to coordinate collection of scientific
data to provide a better understanding of the terrestrial,
aquatic, and marine ecosystems of the North Slope of Alaska.
Subsections (b), (c), (d), (e), and (f) are self-
explanatory.
Section 319. Orphaned, abandoned, or idled wells on Federal land
Subsection (a) requires the Secretary of the Interior, in
cooperation with the Secretary of Agriculture, to establish a
program to remediate, reclaim, and close, orphaned, abandoned,
or idled wells on Federal lands administered by the Secretaries
of the Interior and Agriculture.
Subsections (b), (c), (d), and (e) sets forth requirements
for the program, provisions related to cooperation and
consultation, requirements for a plan, and defines ``idled
well''.
Subsection (f) requires the Secretary of Energy to
establish a technical assistance program to provide assistance
to states in dealing with orphaned and abandoned wells on state
and private lands.
Subsection (g) authorizes funding for the programs.
Section 320. Combined hydrocarbon leasing
The section amends the Mineral Leasing Act to authorize the
Secretary of the Interior to issue separately leases for
exploration for and extraction of tar sand and oil and gas in
areas that contain a combination of tar sand and oil and gas.
Section 321. Alternate energy-related uses on the Outer Continental
Shelf
Section 321 amends the Outer Continental Shelf Lands Act to
provide authority to the Secretary of the Interior to grant
leases, easements, or rights-of-way for energy and related
purposes on the OCS. The section does not allow the grant of
easements or rights-of-way for activities that support the
exploration, development, or production of oil and gas in areas
where oil and gas preleasing, leasing and related activities
are prohibited by a congressional moratorium or a withdrawal
pursuant to section 12 of the Outer Continental Shelf Lands
Act. The authority does not apply to any area 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. The section requires the
Secretary to undertake a coordinated OCS mapping initiative to
assist in decision-making relating to the siting of facilities
under the section.
Section 322. Preservation of geological and geophysical data
Section 322 requires the Secretary to carry out an
initiative with the States to archive and provide a national
catalog of geologic, geophysical, and engineering data, maps,
well logs and samples. The Secretary is required to establish a
data archive system of repositories and to provide technical
and financial assistance related to the archival material.
Section 323. Oil and gas lease acreage limitations
Section 323 amends the Mineral Leasing Act provision to
increase the limitation on the amount of acreage that can be
held by a person under lease in any one State.
Section 324. Assessment of dependence of State of Hawaii on oil
Section 324 requires the Secretary of Energy to assess the
economic implications of the dependence of the State of Hawaii
on oil as the principal source of energy for the State
including; the prospects for supply disruptions and price
volatility impacts on the State economy; the economic
relationship between the use of residual fuel in oil-fired
generation of electricity and the consumption of refined
petroleum products in transportation; the feasibility of
increasing the contribution of renewable energy for the
generation of electricity; the feasibility of using liquefied
natural gas for electric generation; the feasibility for using
renewable energy (including hydrogen) for transportation; and
the development of hydrogen from renewable resources and its
application to the energy needs of the State.
The section further directs the Secretary to prepare and
submit a report to Congress on the findings, conclusions and
recommendations of this assessment within 300 days after the
date of enactment.
Section 325. Denali Commission
Section 325 authorizes the appropriation of funds to the
Denali Commission to carry out energy programs and power cost
equalization programs. It also provides requirements for
conducting open commission meetings including public
announcements about such meetings and the maintaining
transcripts or minutes.
Section 326. Comprehensive inventory of OCS oil and natural gas
resources
Section 326 requires the Secretary of the Interior to
conduct an inventory and analysis of OCS oil and gas resources.
The Secretary is directed to use data on resources offshore
Canada and Mexico, as well as using any available technology
(except for drilling which is explicitly prohibited), including
3-D seismic technology, to develop accurate domestic oil and
gas resource estimates. The Secretary is to submit a report
within 6 months of enactment and update the report at least
every 5 years.
Section 327. Review and demonstration program for oil and gas
production
Section 327 requires the Secretaries of the Interior and
Energy to review of opportunities to enhance production of oil
and gas from public land and the OCS through royalty or
production incentives to lessees that inject carbon dioxide to
enhance recovery. The provision also requires the Secretary of
Energy to establish a competitive grant program for enhancing
recovery of oil and gas by injecting carbon dioxide. It
provides for up to 10 projects in the Willistin Basin of North
Dakota and Montana and 1 project in the Cook Inlet Basin of
Alaska.
Subtitle C--Access to Federal Land
Section 341. Federal onshore oil and gas leasing practices
Section 341 provides for a review by the National Academy
of Public Administration of the Federal onshore oil and gas
leasing program. The Secretary of the Interior is to conduct an
internal review concurrent with the work of the National
Academy of Public Administration. The Secretary of the Interior
and the National Academy are to report findings and
recommendations to Congress within 18 months.
Section 342. Management of Federal oil and gas leasing programs
Section 342 directs the Secretary of the Interior to ensure
expeditious compliance with the requirements of the National
Environmental Policy Act of 1969, improve consultation and
coordination with the States, and improve collection, storage,
and retrieval of information related to onshore oil and gas
leasing on lands otherwise available for leasing. The section
directs the Secretary to improve inspection and enforcement of
oil and gas activities under the onshore oil and gas leasing
program. The section provides that the Secretary of Agriculture
also ensure expeditious compliance with all applicable
environmental laws and improve collection, storage and
retrieval of information. The provision requires the Secretary
of the Interior to develop and implement best management
practice for the onshore oil and gas leasing program. The
section authorizes additional appropriations for the BLM, Fish
and Wildlife Service, and Forest Service for these purposes.
Section 343. Consultation regarding oil and gas leasing on public land
Section 343 requires the Secretaries of the Interior and
Agriculture to enter into a memorandum of understanding
regarding oil and gas leasing on public lands and National
Forest System lands to establish procedures to ensure timely
processing of leasing authorizations and applications for
permits to drill. Section 343 requires Secretaries to agree to
establish a joint data retrieval system and a joint Geographic
Information System for mapping.
Section 344. Pilot program to improve federal permit coordination
Section 344 requires the Secretary of the Interior to
establish a Federal Permit Streamlining Pilot Project. Seven
Western offices of the BLM are identified for participation in
the project. The provision requires that relevant Federal
agencies deploy staff to work with BLM land managers as a team
on all environmental permits and land use planning documents in
order to coordinate and improve Federal decisionmaking with
respect to the permits. This section also requires the
Secretary to prepare a report for submission to the President.
The section directs the Secretary of the Interior to assign
such additional personnel to the seven BLM offices as necessary
to ensure effective implementation of the Pilot Program and the
other programs administered by the BLM offices pursuant to the
statutory mandate for the multiple use of public lands.
Section 345. Energy facility rights-of-ways and corridors on Federal
land
Section 345 requires the Secretary of the Interior, with
respect to public lands, and the Secretary of Agriculture, with
respect to National Forest System lands, to designate utility
corridors in Western States and to incorporate such corridors
into land use and resource management plans within 24 months
following execution of the memorandum required by the section.
The section requires the Secretary of Energy to develop a
memorandum of understanding with the Secretary of the Interior,
the Secretary of Agriculture, and the Secretary of Defense to
coordinateapplicable Federal authorizations and environmental
reviews related to a proposed or existing utility facility.
Section 346. Oil shale leasing
The section requires the Secretary of the Interior to offer
lands otherwise available for leasing for a period to be
determined by the Secretary for purposes of research and
development of innovative technologies for the recovery of
shale oil from oil shale resources on public land. Within 18
months after the date of enactment, the Secretary must complete
a programmatic environmental impact statement and a report
relating to the potential leasing for commercial purposes of
oil shale resources on public land. The U.S. Geological Survey
is directed to undertake an assessment of oil shale resources.
Subtitle D--Coastal Programs
Section 371. Coastal Impact Assistance Program
Section 371 authorizes the appropriation for fiscal years
2006 through 2010 of $500 million per year for payments to
Producing Coastal States with approved Coastal Impact
Assistance Plans and political subdivisions in accordance with
a formula set forth in the section. Thirty-five percent of a
State's allocable share will be paid to the coastal political
subdivisions in the State. Amounts provided under the section
must be used only for one or more of the following: (i)
Projects and activities for the conservation, protection, or
restoration of coastal areas, including wetlands; (ii)
mitigating damage to fish, wildlife, or natural resources;
(iii) planning assistance and administrative costs of complying
with the provisions of this section; (iv) implementation of
approved marine, coastal or conservation plans; (v) mitigating
the impacts of OCS activities through funding onshore
infrastructure and public service needs.
Subtitle E--Natural Gas
Section 381. Exportation or importation of natural gas
Section 381 clarifies FERC's exclusive jurisdiction under
the Natural Gas Act for siting, construction, expansion and
operation of import/export facilities located onshore or in
State waters. This section does not provide FERC eminent domain
authority over siting LNG facilities. The Committee believes
that State and local government involvement should be a
critical part of the FERC siting process. In particular, State
and local government entities should play an important role in
the development of the safety and security guidelines for
proposed facilities. The committee believes that the State and
local governments are in the best position to understand the
needs of the community surrounding proposed sites and should
remain a critical asset to the FERC during the siting process.
Section 381 also codifies FERC's Hackberry policy. In
Hackberry, FERC allowed the owners of a proposed LNG
regasification terminal to negotiate contracts for terminal
services directly with prospective LNG suppliers (eliminating
open access requirements) as a way to encourage site
development.
Section 382. New natural gas storage facilities
Section 382 allows FERC to grant new storage capacity
market-based rate treatment, notwithstanding the fact the
applicant may have market power, if (1) it is in the public
interest, (2) it is needed storage capacity, and (3) customers
are adequately protected.
Section 383. Process coordination; hearings; rules of procedures
Section 383 establishes FERC as the lead agency for NEPA
purposes and provides FERC authority to set schedules for
required Federal authorizations. Agencies with jurisdiction
over natural gas infrastructure are encouraged to coordinate
their proceedings with the timeframe established by FERC. If a
schedule deadline is not met, the President may issue a
decision.
Section 384. Penalties
Section 384 increases penalties under the Natural Gas Act
and Natural Gas Policy Act, parallel to increases in the
Federal Power Act ($5,000 to $1,000,000). Section 384 also
creates a civil penalty under Natural Gas Act.
Section 385. Market manipulation
Section 385 amends the Natural Gas Act to ban any
``manipulative or deceptive device or contrivance'' (as those
terms are used in section 10(b) of the Securities Exchange Act
of 1934 (15 U.S.C. 78j (b))), in connection with jurisdictional
natural gas transactions, that are in violation of FERC rules.
Section 386. Natural gas market transparency rules
Section 386 authorizes FERC to establish an electronic
information system to provide information about the price or
transportation costs of natural gas in interstate commerce.
Section 386 requires FERC to exempt from disclosure information
the disclosure of which would be detrimental to the operation
of an effective market or which would jeopardize system
security. Section 386 shall not affect the CFTC's exclusive
jurisdiction with respect to commodities under the Commodity
Exchange Act. Section 386 provides that FERC shall not compete
with private sector publishers of energy prices.
Section 387. Deadline for decision on appeals of consistency
determination under the Coastal Zone Management Act of 1972
Section 387 amends the CZMA by establishing a 270-day
period in which the Secretary of Commerce must close the
decision record. The Secretary may stay the 270-day clock for
up to 60 days to acquire supplemental information regarding the
consistency determination or clarifying information from a
party to the proceeding related to information already in the
record. Section 387 provides that the Secretary has 90 days
after the record is closed (90 days after the 270 to 330 days,
if stayed 60 days) to issue a decision or explain why it
cannot, in which case theSecretary has an additional 45 days to
issue a decision. In total, section 387 allows for 1 year and 100 days
for the Secretary to complete action on an appeal of a consistency
determination.
Section 388. Federal-State liquefied natural gas forums
Section 388 directs the Secretary of Energy, in cooperation
and consultation with Secretary of Transportation, Secretary of
Homeland Security, FERC, and Governors of coastal States, to
convene at least 3 forums to discuss LNG siting issues such as
siting, safety, and emergency response. The purpose of the
forums is to identify and develop best practices related to LNG
and to foster cooperative efforts.
Section 389. Prohibition on trading and serving by certain persons
Section 389 allows courts to prevent anyone who manipulates
markets from serving as officers or directors of gas utility
companies or engaging in the business of selling or purchasing
gas or gas transmission services jurisdictional to FERC.
Subtitle F--Federal Coalbed Methane Regulation
Section 391. Federal coalbed methane regulation
Section 391 provides that any State that, as of the date of
enactment of this Act, is included on the list of affected
States established under section 1339(b) of the Energy Policy
Act of 1992 (42 U.S.C. 13368(b)) shall be removed from the list
if, not later than 3 years after the date of enactment of this
Act, the State takes steps to implement a program promoting the
permitting, drilling and production of coalbed methane wells
within that State.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
Section 401. Authorization of appropriations
Section 401 authorizes $200 million annually for each of
fiscal years 2006 through 2014 to carry out the purposes of
this subtitle. It requires a report from the Secretary of
Energy that contains an 8-year plan for implementing the Clean
Coal Power Initiative.
Section 402. Project criteria
Section 402 establishes criteria for eligibility to receive
assistance under this subtitle. It establishes emissions and
thermal efficiency criteria for gasification projects and
``other projects.'' It requires the Secretary to allocate at
least 80 percent of funds to coal gasification technologies and
not more than 20 percent of funds to other combustion
technologies. All projects must meet increasingly strict
environmental and thermal efficiency performance standards. The
section permits the expenditure of funds on carbon capture and
sequestration technologies. The Secretary must give priority to
projects that include carbon capture and sequestration as part
of the project. The section also places this program under the
cost-sharing requirements of section 1002, in lieu of the
existing cost-sharing requirements (including repayment
requirements) that have been imposed on the program in past
appropriations Acts.
Section 403. Report
Section 403 requires the Secretary to report within one
year of the date of enactment and every two years thereafter on
the status and progress of the Initiative.
Section 404. Clean coal centers of excellence
Section 404 requires the Secretary to award competitive
grants to establish centers of excellence for clean coal
technologies at institutions of higher education selected for
their potential to advance new clean coal technologies.
Section 405. Integrated coal/renewable energy system
Section 405 allows the Secretary of Energy to provide loan
guarantees to an integrated gas combined cycle project that
uses coal and wind and other renewable energy sources and that
has the capacity to sequester carbon dioxide and provide a
source of hydrogen.
Section 406. Loan to place Alaska Clean Coal Technology facility in
service
Section 406 allows the Secretary of Energy to grant a
direct loan of not more than $80 million to allow the borrower
to place a clean coal technology plant into reliable operation
for the generation of electricity.
Section 407. Western integrated coal gasification demonstration project
Section 407 directs the Secretary of Energy to carry out a
demonstration project to produce energy from coal mined in the
Western United States using integrated gasification combined
cycle technology capable of sequestering carbon dioxide
emissions.
Subtitle B--Federal Coal Leases
Section 411. Repeal of the 160-acre limitation for coal leases
Section 411 amends the Mineral Leasing Act to allow leases
up to 320 acres subject to certain limitations.
Section 412. Mining plans
Section 412 amends the Mineral Leasing Act to allow the
Secretary of the Interior to allow a period of more than 40
years if the Secretary makes certain determinations regarding
maximum economic recovery of a coal deposit, and that the
longer period is in the interest of the orderly, efficient, or
economic development of a coal resource.
Section 413. Payment of advance royalties under coal leases
Section 413 amends the Mineral Leasing Act to extend 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 to no more than twenty years.
Section 414. Elimination of deadline for submission of coal lease
operation and reclamation plan
Section 414 eliminates the deadline for submitting an
operation and reclamation plan.
Section 415. Application of amendments
Section 415 stipulates that amendments made by this
subtitle apply to any coal lease issued on or after the date of
enactment of this Act. Amendments made by this Act may apply to
any lease issued before the date of enactment on the date of
readjustment of the lease under section 7(a) of the Mineral
Leasing Act or on request by the lessee, prior to the date of
adjustment.
TITLE V--INDIAN ENERGY
Section 501. Short title
Section 501 contains the short title, the ``Indian Tribal
Energy Development and Self-Determination Act of 2005''.
Section 502. Office of Indian Energy Policy and Programs
Section 502 amends title II of the DOE Organization Act to
create the Office of Indian Energy Policy and Programs within
the DOE to support the development and use of tribal energy
resources. It states that a director shall be appointed by the
Secretary of Energy and outlines the duties of the director.
Section 503. Indian energy
Section 503 provides a complete substitute for title XXVI
of the Energy Policy Act of 1992 specifically as follows:
Section 2601 defines terms used in the Act.
Section 2602(a) requires the Secretary of the Interior to
implement an Indian energy resource development program to
assist Indian tribes in the development of their resources and
to further the goal of Indian self-determination. The Secretary
is authorized to provide grants and low-interest loans to
qualifying tribes and Tribal Energy Resource Development
Organizations. Such sums as are necessary to carry out the
subsection are authorized to be appropriated from fiscal year
2006 through 2016.
Section 2602(b) directs the Director of the Office of
Indian Energy Policy and Programs at DOE to develop a program
to assist consenting tribes in meeting energy education,
research and development, planning and management needs and
authorizes the Director to provide grants to tribes or tribal
energy resource development organizations. The Director is also
required to develop a program to provide tribes with the
opportunity to participate in carbon sequestration practices.
The sum of $20 million is authorized to be appropriated for
each of fiscal years 2006 through 2016.
Section 2602(c) authorizes, under specified conditions, the
Secretary of Energy to provide loan guarantees for an amount
equal to not more than 90 percent of unpaid interest and
principal due on any loan made to an Indian tribe for energy
development. The aggregate outstanding sum guaranteed by the
Secretary of Energy shall not exceed $2 billion.
Section 2602(d) authorizes Federal agencies to give
preference in purchasing electricity or other energy products
to Indian-owned or controlled entities under specified
conditions.
Section 2603 authorizes the Secretary of the Interior to
provide grants to tribes to inventory, study, and develop their
energy resources and to enhance the legal and administrative
ability of tribes to manage their energy resources.
Section 2604 establishes a program by which an Indian tribe
may submit to the Secretary of the Interior for approval a
tribal energy resources agreement (TERA) for the development of
energy resources on tribal land and gives the Secretary one
year to approve or disapprove that agreement. Upon approval of
the TERA, Indian tribes are authorized to enter into leases and
business agreements, or approve rights-of-way for applicable
energy projects without separate approval of the Secretary of
the Interior. The Secretary is required to conduct a periodic
review and evaluation of the tribe's activities and the tribes
must monitor the activities of their business partners. The
section outlines a process for public input into proposed TERAs
as well as a process to review alleged violations of the TERA
by an applicable tribe and the Secretary. There are authorized
to be appropriated such sums as necessary from 2006 through
2016 to carry out this section.
The program established by this section advances the
ongoing policy of encouraging greater tribal self-determination
in energy-related leasing and agreements. The program is
consistent with policies ensuring that tribal self-
determination and the Federal trusteeship are complementary,
and that an Indian tribe that elects to pursue greater self-
determination does not do so at the expense of the trust
relationship between the United States and the Indian tribe.
Section 2605 authorizes and encourages actions by the Power
Marketing Administration to assist tribal energy development.
The Western Area Power Administration is authorized to make
power allocations to meet the firming and reserve needs of
Indian-owned energy projects and to acquire power generated by
Indian tribes for firming and reserve needs, so long as the
rates andterms are competitive. The Secretary of Energy is also
required to complete a study that describes the use by Indian tribes of
Federal power market allocations, the quantity of power allocated to
tribes by Power Marketing Administrations and identification of
barriers that impede tribal access to Federal power. The sum of
$750,000 is authorized to be appropriated to carry out this section.
Section 2606 authorizes a study on the feasibility of a
demonstration project using wind energy generated by Indian
tribes and hydropower generated by the Army Corps of Engineers
on the Missouri River to supply firming power to WAPA. The sum
of $1 million is authorized to be appropriated for this study.
Section 504. Four Corners transmission line project and electrification
Section 504 makes the Dine Power Authority, a Navajo Nation
enterprise, eligible for funding under this title for
activities associated with the development of a transmission
line from the Four Corners Area to southern Nevada and related
power generation opportunities. This section also amends
section 602 of Public Law 106-511 to extend the administration
of the Navajo Electrification project through 2011.
Section 505. Energy efficiency in Federal housing
Section 505 directs the Secretary of Housing and Urban
Development to promote energy conservation and efficiency in
Federal housing located on Indian land.
Section 506. Consultation with Indian tribes
Section 506 requires the Secretary of the Interior and
Secretary of Energy to involve and consult with Indian tribes
in the implementation of this title.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Section 601. Short title
Section 601 is self-explanatory.
Section 602. Extension of indemnification authority
The authorization period for indemnification provisions for
NRC licensees and DOE contractors is extended for a period of
twenty years.
Section 603. Maximum assessment
Section 603 increases the maximum annual assessment under
the standard deferred premium on NRC licensees from $10 million
to $15 million, increases the overall cap from $63 million to
$95.8 million, and adjusts these numbers for inflation in the
future.
Section 604. Department of Energy liability limit
Section 604 sets the total amount of indemnification for
DOE contractors at $10 billion, and adjusts this number for
inflation in the future.
Section 605. Incidents outside the United States
This section increases the amount of indemnification for
DOE contractors engaged in nuclear activities outside the
United States from $100 million to $500 million.
Section 606. Reports
Section 606 requires DOE and NRC to issue a report to
Congress on the status of the Price-Anderson program by
December 31, 2021.
Section 607. Inflation adjustment
Section 607 requires the NRC to adjust for inflation the
standard deferred premium for NRC licensees every five years.
Section 608. Treatment of modular reactors
Section 608 allows NRC to consider a combination of small
modular reactors at one site to be a single facility for
purposes of Price-Anderson indemnification.
Section 609. Applicability
Section 609 clarifies that the amendments made by sections
603, 604, and 605 do not apply to a nuclear incident that
occurs before the date of their enactment.
Section 610. Civil penalties
Section 610 ends the automatic remission of civil penalties
for nuclear safety violations by DOE contractors that are
nonprofit institutions and establishes a limit on such civil
penalties not to exceed the total fees paid within one year to
the nonprofit institution.
Subtitle B--General Nuclear Matters
Section 621. Medical isotope production
Section 621 provides for the NRC to license the export of
highly enriched uranium for medical isotope production in
Canada, Belgium, France, Germany and the Netherlands. The
intent of the medical isotope provision is to ensure that the
United States medical community has an adequate and reliable
supply of isotopes for nuclear medicine. The medical isotope
provision does not mitigate or restrict the NRCs authority to
require that recipients of high enriched uranium (HEU) be
actively working to convert to low enriched targets. Nor does
the provision reduce any security measures implemented by the
NRC which ensure the safe transport and storage of HEU. Section
621 provides the NRC with more authority to add additional
safeguards if it believes they are necessary.
Section 622. Safe disposal of greater-than-class C radioactive waste
Section 622 requires the designation of an entity within
the DOE to be responsible for the final disposal of Greater-
Than-Class C Radioactive Waste (GTCC). This section also
requires the development of a comprehensive plan with
alternatives for the disposal of GTCC. Before a final action is
taken by the Secretary, a report is required to Congress
describing all alternatives under consideration and await
action by Congress.
Section 623. Prohibition on nuclear exports to countries that sponsor
terrorism
Section 623 strengthens existing laws that contain
prohibitions of nuclear exports to countries identified by the
Secretary of State as engaging in state-sponsored terrorism.
Section 624. Decommissioning pilot program
Section 624 establishes a pilot program to decommission and
decontaminate the sodium-cooled fast breeder experimental test-
site reactor in Arkansas and authorizes appropriation of
$16,000,000.
Subtitle C--Next Generation Nuclear Plant Project
Section 661. Project establishment
This section is self-explanatory.
Section 662. Project management
Section 662 designates the Office of Nuclear Energy,
Science and Technology as the project manager. The Secretary
may also call upon the Office of Science to provide their
expertise for the project. The Idaho National Laboratory (INL)
is designated as the lead laboratory and directed to organize a
consortium of industrial partners to participate in the
project. The prototype plant will be built in Idaho at the INL.
The project may utilize facilities at other national
laboratories.
Section 663. Project organization
Section 663 establishes the major project elements, the
phases in which the project will be conducted, project
requirements, international collaboration, and project review.
The program will be completed in phases; the first phase will
validate the technologies under the major project elements. The
first phase will examine whether it is appropriate to produce
electricity and hydrogen concurrently and begin initial design
activities for a prototype nuclear power plant. The second
phase of the project includes the competitive process for
reactor and plant design, licenses to construct and operate
from the NRC and general construction and operation. Project
requirements include making full use of the expertise of the
nuclear power industry, chemical processing industry and
Generation IV International Forum partners. The Nuclear Energy
Research Advisory Committee (NERAC) will review all project
plans on an ongoing basis to ensure all scientific, technical,
safety and program management issues receive proper attention.
After a review of phase one activities, the NERAC will also
make a recommendation to the Secretary to proceed to phase two
of the project. The Secretary shall transmit any NGNP NERAC
report to the Congress after reviewing it.
Section 664. Nuclear Regulatory Commission
Section 664 sets forth that the NRC will have licensing and
regulatory authority for any reactor authorized in this
program. The NRC and DOE are also required to notify Congress
of the preferred licensing strategy for NGNP. Requires the
Secretary of the DOE to have ongoing interaction with the NRC
throughout the duration of the project
Section 665. Project timelines and authorization of appropriations
This section is self-explanatory.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
Section 701. Use of alternative fuels by dual-fueled vehicles
Section 701 amends current law to strengthen requirements
that Federal vehicle fleets actually use alternative fuels in
their alternative fuel capable vehicles.
Section 702. Alternative fuel use by light duty vehicles
Section 702 sunsets the alternative fuel vehicle
requirements for covered motor vehicle fleets under sections
501, 507, and 508 of the Energy Policy Act of 1992 not later
than 2015.
Section 703. Incremental cost allocation
Section 703 makes a minor technical amendment to section
303(c) of the Energy Policy Act of 1992.
Section 704. Alternative compliance
Section 704 amends title V of the Energy Policy Act of 1992
to allow covered fleet operators to apply for a waiver of the
requirements of the Act. The amendment would provide
flexibility to fleet operators and ease compliance with the
fleet requirements for petroleum fuel use reductions.
Section 705. Report concerning compliance with alternative fueled
vehicle purchasing requirements
Section 705 requires a report from the Secretary of Energy
on purchasing requirements by February 15, 2006.
Subtitle B--Automobile Efficiency
Section 711. Authorization of appropriations for implementation and
enforcement of fuel economy standards
Section 711 authorizes $2 million for each of fiscal years
2006 through 2010 for the National Highway Traffic Safety
Administration to carry out its obligations with respect to
fuel economy standards.
Subtitle C--Miscellaneous
Section 721. Railroad efficiency
Section 721 establishes a cost-shared, public-private
research partnership to develop and demonstrate technologies
that increase railroad locomotive fuel economy, reduce air
emissions and lower operating costs. It authorizes $110 million
over three years for the program.
Section 722. Conserve by bicycling program
Section 722 establishes a program in the Department of
Transportation to promote fuel conservation through greater use
of bicycling as an alternative to motor vehicle use. It
authorizes $6.2 million for the program.
Section 723. Reduction of engine idling of heavy-duty vehicles
Section 723 establishes a program under the EPA to develop
and deploy stationary and mobile technologies that will assist
in reducing the amount of time large over-the-road trucks spend
idling. The program is authorized to spend $49.5 million over
three years to promote stationary idling technologies. The
amendment provides for a 250 pound weight exemption for large
trucks that make use of auxiliary power units in lieu of engine
idling.
Section 724. Biodiesel engine testing project
Section 724 requires the Secretary of Energy to initiate a
project in partnership with the diesel engine diesel fuel
injection system, and diesel vehicle manufacturers and diesel
and biodiesel fuel providers to provide biodiesel testing in
advanced diesel engine and fuel system technology. It
authorizes $5 million for each of fiscal years 2006 through
2008.
Subtitle D--Federal and State Procurement
Section 731. Definitions
Section 731 sets forth the definitions of terms used in
this subtitle.
Section 732. Federal and State procurement of fuel cell vehicles and
hydrogen energy systems
Section 732 sets forth the purposes of the section: to
stimulate acceptance by the market of fuel cell vehicles and
hydrogen energy systems and support development of technologies
relating to fuel cell vehicles, public refueling stations, and
hydrogen energy systems and to require the Federal Government
to adopt those technologies as soon as practicable.
This section also establishes a program for Federal leases
and purchases of fuel cell technologies and authorizes a total
of $105 million over fiscal years 2008 through 2010.
Section 733. Federal procurement of stationary, portable, and micro
fuel cells
Section 733 sets for the purposes of the section which are
to stimulate the acceptance by the market of these technologies
and support the development of technologies related to
stationary, portable and micro fuel cells.
The section also establishes a program for Federal leases
and purchases of stationary, portable and micro fuel cells and
authorizes a total of $345 million over fiscal years 2006
through 2010.
TITLE VIII--HYDROGEN
Section 801. Hydrogen research, development, and demonstration
Section 801 provides a complete substitute for the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act
of 1990 (42 U.S.C. 12401 et seq.), authorizes basic research,
development and demonstration activities related to hydrogen
energy, fuel cells and related infrastructure. The substitute
establishes an interagency task force to advise the Secretary,
provides for the transfer of critical hydrogen and fuel cell
technologies to the private sector, provides for the
development of safety codes and standards related to fuel cell
vehicles and hydrogen energy systems, and requires a National
Academy report.
TITLE IX--RESEARCH AND DEVELOPMENT
Section 901. Short title
Section 901 designates the title as the ``Energy Research,
Development, Demonstration, and Commercial Application Act of
2003''.
Section 902. Goals
Section 902 defines broad goals and requires the Secretary
of Energy to publish specific goals with each annual budget
submission.
Section 903. Definitions
This section is self-explanatory.
Subtitle A--Energy Efficiency
Section 911. Energy efficiency
This section sets authorization levels and is self-
explanatory.
Section 912. Next generation lighting initiative
Section 912 authorizes a new initiative to develop advanced
solid state lighting options through research, development,
demonstration, and commercial application activities. A
definition regarding the selection of an Industry Alliance to
assist in updating roadmaps and assessing progress of the
Initiative is provided within this section.
Section 913. National building performance initiative
Section 913 authorizes the Director of Office of Science
and Technology Policy (OSTP) to establish an interagency
program to address energy conservation and R&D; efforts to
reduce energy use in buildings. An advisory committee is
established to oversee creation and implementation of a plan,
and requires annual progress reports.
Section 914. Secondary electric vehicle battery use program
Section 914 authorizes a program to evaluate secondary use
of electric vehicle batteries through research, development,
demonstration, and commercial application activities.
Section 915. Energy efficiency science initiative
Section 915 authorizes a research program administered by
the Assistant Secretary responsible for energy conservation.
Subtitle B--Distributed Energy and Electric Energy Systems
Section 921. Distributed energy and electric energy systems
Section 921 provides authorization levels and is self-
explanatory.
Section 922. High power density industry program
Section 922 authorizes the creation of a research and
demonstration program for high power density facilities.
Section 923. Micro-cogeneration energy technology
Section 923 authorizes grants to consortia to develop
small-scale combined heat and power systems for residential
applications.
Section 924. Distributed energy technology demonstration program
Section 924 authorizes assistance to demonstration projects
using distributed energy technologies in highly energy
intensive commercial applications.
Section 925. Electric transmission and distribution programs
Section 925 authorizes research, development and
demonstration programs to ensure reliability, efficiency and
environmental integrity of electrical transmission systems and
requires a 5-year program plan to be completed within the first
year. This section authorizes a Power Delivery Research
Initiative focused on establishing test beds at national
laboratories, universities, or in industry, to evaluate and
demonstrate the technologies required to move high temperature
superconductivity into commercial use. A Transmission and
Distribution Grid Planning and Operations Initiative for
research, development and demonstration of tools to plan,
operate, and expand transmission and distribution grids in
realistic market scenarios is authorized and this initiative
shall use a distributed research center involving universities
and national laboratories with a focus on transfer of useful
technologies to industry.
Subtitle C--Renewable Energy
Section 931. Renewable energy
Section 931 provides authorization levels and is self-
explanatory.
Section 932. Bioenergy programs
Section 932 authorizes a broad program of research in
biopower, biofuels and bioproducts, including technologies
utilizing cellulosic feedstocks or enzyme-based processing.
Section 933. Concentrating solar power research program
Section 933 authorizes a program of research on
concentrating solar power research to establish technologies
and economics of both electricity and hydrogen production. A
report with recommendations for future research is required
within 4 years.
Section 934. Hybrid solar lighting research and development program
Section 934 authorizes a program of research on novel
lighting systems that integrate sunlight and electrical
lighting in complement to each other in common lighting
fixtures for the purpose of increasing energy efficiency. A
National Academy of Sciences report is required within 2 years.
Section 935. Miscellaneous projects
Section 935 authorizes research and development in ocean
energy, combining renewable and other energy sources, and
hydrogen carrier fuels.
Subtitle D--Nuclear Energy
Section 941. Nuclear energy
Section 941 provides authorization levels and is self-
explanatory.
Section 942. Nuclear energy research programs
Section 942 authorizes the Nuclear Energy Research
Initiative, Nuclear Energy Plant Optimization, Nuclear Power
2010, Generation IV Nuclear Energy Systems, Reactor Production
of Hydrogen, and Nuclear Infrastructure Support Programs.
Section 943. Advanced fuel cycle initiative
Section 943 authorizes the Advanced Fuel Cycle Initiative
to evaluate proliferation-resistant fuel recycling and
transmutation technologies, which support evaluation of
alternative national strategies for spent fuel management and
Generation IV advanced reactor concepts. An annual progress
report is required.
Section 944. University nuclear science and engineering support
Section 944 authorizes fellowship and faculty assistance
programs, maintains university research and training reactors,
and encourages interactions between universities and national
laboratories.
Section 945. Security of nuclear facilities
Section 945 authorizes research and development on
technologies for improving safety and security of reactors.
Section 946. Alternatives to industrial radioactive sources
Section 946 authorizes research and development on
alternatives to large industrial radioactive sources, including
well-logging sources, that reduce safety, environmental, or
proliferation risks. A survey and report to Congress are
required of existing types of commercial sources, along with
review of available disposal options for such sources and
evaluation of the need for alternative future disposal options.
Subtitle E--Fossil Energy
Section 951. Fossil energy
Section 951 provides authorization levels and is self-
explanatory.
Section 952. Oil and gas research programs
Section 952 authorizes research programs for oil and gas
technologies with applications including exploration and
production, reservoir life and extension, heavy oil and shale,
and related environmental research. The section also authorizes
research on fuel cells and requires a report at two year
intervals on estimates of oil and gas reserves, reserves
growth, and undiscovered resources.
Section 953. Methane hydrate research
Section 953 reauthorizes the Methane Hydrate Research and
Development Act of 2000. It adds findings to the current Act,
provides a new focus for ongoing activities in light of past
recommendations of the National Research Council, requires a
new study of the program by the National Research Council in
2009, and authorizes appropriations for the program through
fiscal year 2010.
Section 954. Research and development for coal mining technologies
Section 954 authorizes research and development program on
coal mining technologies. The research is to be guided by the
Mining Industry of the Future program and relevant National
Academy reports and is to include technologies to enable mining
of coal with reduced contaminant levels.
Section 955. Coal and related technologies program
Section 955 authorizes a broad research, development,
demonstration and commercial application program for coal and
power systems and requires the Secretary to identify goals for
coal-based technologies.
Section 956. Carbon dioxide capture research and development
Section 956 establishes a program of research and
development aimed at developing carbon dioxide capture
technologies for pulverized coal combustion units.
Section 957. Complex well technology testing facility
Section 957 is self-explanatory.
Subtitle F--Science
Section 961. Science
Section 961 establishes authorization levels for the Office
of Science and authorizes separate funding for construction
costs associated with the international burning plasma fusion
research project known as ITER.
Section 962. United States participation in ITER
Section 962 authorizes U.S. participation in the
international burning plasma fusion research project known as
ITER and requires the Secretary to submit a plan within 180
days of enactment describing the design and implementation of
international or national facilities for the testing of fusion
materials and technologies.
Section 963. Support for science and energy facilities and
infrastructure
Section 963 requires the development and implementation of
a strategy for maintaining or building essential facilities and
infrastructure primarily supporting programs at the Office of
Science, the Office of Energy Efficiency and Renewable Energy,
the Office of Fossil Energy, or the Office of Nuclear Energy,
Science and Technology.
Section 964. Catalysis research program
Section 964 authorizes a broad research and development
program for catalysis science including use of precious metals
and requires National Academy of Science review every 3 years.
Section 965. Hydrogen
Section 965 authorizes a program of fundamental research
and development in support of the hydrogen and fuel cell
programs authorized under Title VIII of the Act.
Section 966. Solid state lighting
Section 966 authorizes a program of fundamental research on
advanced solid state lighting in support of the Next Generation
Lighting Initiative carried out under Section 912.
Section 967. Advanced scientific computing for energy missions
Section 967 authorizes a scientific computing research and
development program, including activities related to applied
mathematics, with the goal of supporting departmental missions
and providing the computational, networking, and workforce
resources required for world leadership in science.
Section 968. Genomes to life program
Section 968 authorizes research and development in
microbial and plant systems biology, protein science, and
computational biology and authorizes construction of user
facilities at national laboratories.
Section 969. Fission and fusion energy materials research program
Section 969 authorizes a research and development program
on material science issues presented by advanced fission
reactors and Department's fusion program.
Section 970. Energy-water supply technologies program
Section 970 authorizes a research and demonstration program
to study energy-related issues associated with water resources
and issues associated with sustaining water supplies for energy
production. Program topics shall include arsenic removal,
desalination, and energy and water sustainability. The arsenic
removal program is to be run by the American Water Works
Association Research Foundation for the Department.
Desalination program is to follow the national Desalination and
Water Purification Technology Roadmap in partnership with the
U.S. Bureau of Reclamation. The sustainability program supports
water modeling studies, on the level of major national river
basins, to understand water usage patterns and the impact of
energy production activities in these basins.
Section 971. Spallation neutron source
Section 971 requires the development of an operational plan
for the Spallation Neutron Source Facility that ensures the
facility is employed to its full capability in support of the
study of advanced materials, nanoscience, and other missions of
the Department. The section authorizes funds for completion of
construction of the facility, funds for operations, and
additional funds to be available in the event that Department
stockpiles of heavy water are insufficient to meet the needs of
the facility.
Subtitle G--International Cooperation
Section 981. Western Hemisphere energy cooperation
Section 981 authorizes a program to promote cooperation on
energy issues with countries of the Western Hemisphere,
including energy production, energy efficiency, and the
development and transfer of technologies to world energy
markets.
Section 982. Cooperation between United States and Israel
Section 982 requires the Secretary of Energy to report to
Congress on the 1996 ``Agreement between the Department of
Energy of the United States and the Ministry of Energy and
Infrastructure of Israel Concerning Energy Cooperation.''
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Section 1001. Availability of funds
This section provides that all funding authorized to be
appropriated under this Act or by amendments made by this Act
shall remain available until expended.
Section 1002. Cost sharing
This section establishes Department-wide cost-sharing
requirements for all research, development, demonstration, and
commercial application activities initiated after the date of
enactment of this Act. These requirements will take the place
of the current patchwork of cost-sharing requirements that have
been contained in previous authorization and appropriations
laws. The cost-sharing requirements will generally require a 20
percent cost share for research and development activities and
a 50 percent cost share for demonstration and commercial
application activities, with an exemption for basic or
fundamental research and development and the ability for the
Secretary to waive cost-sharing requirements in appropriate
situations. The section specifies how in-kind contributions are
to be treated for purposes of calculating a cost-sharing
contribution. The section also prohibits repayment or
``recoupment'' provisions from being made part of cost-shared
research, development, demonstration, and commercial
application activities in the future. Such provisions in the
past have been difficult to administer, have yielded little
funding back to the Department, and have been a barrier to
attracting the most competent external organizations to
participate in Departmental cost-shared research, development,
and demonstration activities.
Section 1003. Merit review of proposals
Section 1003 requires merit review of proposals for the
award of any funds authorized under this Act or by amendments
made by this Act.
Section 1004. External technical review of Departmental programs
Section 1004 requires advisory boards for Department
programs and authorizes the Secretary to use the National
Academy of Sciences to establish such boards and to conduct
other reviews and assessments of programs and goals on at least
5-year intervals.
Section 1005. Improved technology transfer of energy technologies
Section 1005 requires the Secretary to appoint a Technology
Transfer Coordinator, establishes a Technology Transfer Working
Group with representation from each of the national
laboratories and single-purpose research facilities, and
establishes a Technology Commercialization Fund to be used to
provide matching funds to private partners to promote promising
technologies.
Section 1006. Technology infrastructure program
Section 1006 requires the Secretary to establish a pilot
program to encourage the creation of technology clusters and
improve the ability of the national laboratories and single-
purpose research facilities to leverage and benefit from
commercial research.
Section 1007. Small business advocacy and assistance
Section 1007 requires each National Laboratory, and enables
each single-purpose research facility, to designate a small
business advocate to facilitate participation of small
businesses in procurement and research opportunities.
Section 1008. Outreach
Section 1008 requires each program authorized under the Act
to include an outreach component to provide appropriate
information to manufacturers, consumers, institutions of higher
education, facility planners and managers, State and local
governments, and other entities.
Section 1009. Relationship to other laws
Section 1009 clarifies that, except as otherwise provided
in this Act or the amendments made by this Act, DOE research,
development, demonstration, and commercial application programs
should continue to be governed by the applicable provisions of
the existing statutes that provide the Department with its
authorities for research, development, demonstration, and
commercial application. The five leading such statutes are
specifically named in this section.
Section 1010. Improved coordination and management of civilian science
and technology
Section 1010 amends the Department of Energy Organization
Act to establish an additional Under Secretary designated as
the Under Secretary for Science and Energy, and an Assistant
Secretary for Science to head the Office of Science. An
additional Assistant Secretary position is created, accompanied
by a sense of Congress that leadership in nuclear energy shall
be at the Assistant Secretary level. Sections 5314 and 5315 of
title 5, United States Code, are amended to show 3, instead of
2, Under Secretaries of Energy and 8, instead of 6, Assistant
Secretaries of Energy.
Section 1011. Other transactions authority
Section 1011 amends the Department of Energy Organization
Act (42 U.S.C. 7256) to allow transactions by the Secretary of
Energy to further research, development, or demonstrations and
exempts them from provisions of section 9 of the Federal
Nonnuclear Energy Research and Development Act of 1974 (42
U.S.C. 5908). These other transactions can only be entered if
standard contract, grant or cooperative agreements are not
feasible or appropriate. The amendment also allows the
Secretary to protect from disclosure certain business
information for up to 5 years and requires that the Secretary
develop guidelines within 3 months for using the other
transactions mechanism.
Section 1012. Prizes for achievement in grand challenges of science and
technology
Section 1012 authorizes cash prizes in recognition of
break-through achievements in research, development,
demonstration, and commercial application that have the
potential for application to the performance of the mission of
the Department. The Committee anticipates that the DOE will use
such authority to overcome grand challenges in energy research
and development similar in complexity to the Defense Advanced
Research Projects Agency's ``Grand Challenge'' for autonomous
robot ground vehicles.
Section 1013. Technical corrections
Section 1013 updates and makes technical corrections to the
Act of July 7, 1960, the Federal Nonnuclear Energy Research and
Development Act of 1974, the Stevenson-Wydler Technology
Innovation Act of 1980, and the Department of Energy
Organization Act.
TITLE XI--PERSONNEL AND TRAINING
Section 1101. Workforce trends and traineeship grants
Section 1101 requires the DOE, in consultation with the
Department of Labor (DOL), to monitor workforce trends in the
energy industry and report to Congress. It authorizes the DOE,
in consultation with the DOL, to establish traineeship grants
to address shortages of trained personnel.
Section 1102. Energy research fellowships
Section 1102 authorizes the Secretary of Energy to
establish fellowships for postdoctoral and senior researchers
in energy research and development fields. The fellowships are
intended to be different in character from those currently
offered through project funding. The postdoctoral fellowship is
to be awarded to individuals, based on their promise as
researchers, and is to be portable to the institution of higher
education of each individual's choice. The senior fellowship is
also to be awarded based on the track record of the individual,
and not on the basis of a particular project proposal. The
intention is to provide a mechanism in the DOE similar to the
IBM Fellows program and similar programs in industry, which
identify and give greater autonomy in selection of research
topics to the most outstanding researchers
Section 1103. Educational programs in science and mathematics
Section 1103 amends the Department of Energy Science
Education Enhancement Act (42 U.S.C. 7381a) to authorize the
DOE to support competitive science and mathematics events and
professional development for K-12 mathematics and science
teachers.
Section 1104. Training guidelines for electric energy industry
personnel
Section 1003 requires the Secretary of Labor, in
consultation with the Secretary of Energy, to develop, jointly
with the electric industry and recognized employee
representatives, model personnel training guidelines to support
electric system reliability and safety.
Section 1105. National Center on Energy Management and Building
Technologies
Section 1105 requires the Secretary of Energy to support
the establishment of a National Center on Energy Management and
Building Technologies, to carry out research, education, and
training activities to facilitate the improvement of energy
efficiency and indoor air quality in industrial, commercial,
and residential buildings.
Section 1106. Improved Access to energy-related scientific and
technical careers
Section 1106 requires the Director of each National
Laboratory, and, at the discretion of the Secretary of Energy,
each science facility operated by the Department, to take
actions to increase the participation of historically Black
colleges or universities, Hispanic-serving institutions, or
tribal colleges in activities that improve these institutions'
ability to train students in scientific and technical careers.
Section 1107. National Power Plant Operations Technology and Education
Center
Section 1107 requires the Secretary of Energy to support
the establishment of a national training center to address the
need for training and educating certified operators for
electric power generation plants.
TITLE XII--ELECTRICITY
Section 1201. Short title
Section 1201 is self-explanatory.
Subtitle A--Reliability Standards
Section 1211. Electric reliability standards
Section 1211 changes our current voluntary rules system to
a mandatory rules system under an Electricity Reliability
Organization (ERO). This section grants ERO, approved by FERC,
the power to establish mandatory rules for operation of the
transmission grid and authority to penalize anyone who violates
those standards.
Subtitle B--Transmission Infrastructure Modernization
Section 1221. Siting of interstate electric transmission facilities
Section 1221 directs DOE to conduct a study of transmission
congestion within 1 year of enactment (and triennially
thereafter). This section authorizes the Secretary of Energy to
designate one or more geographic areas as national interest
electric transmission corridors. This section provides limited
federal backstop siting authority (eminent domain) for electric
transmission lines in areas designated by the Secretary of
Energy as national interest transmission corridors. This
section provides for just compensation for any rights-of-way
acquired by eminent domain.
Section 1221 establishes DOE as the lead agency for setting
schedules and coordinating Federal authorizations required in
order to site a transmission facility. This section designates
the President as the arbitrator for any delays or denials of
Federal permits. This section authorizes States to enter into
interstate compacts for the purpose of establishing regional
transmission siting agencies with authority to site
transmission facilities.
Section 1222. Third-party finance
Section 1222 authorizes the Western Area Power
Administration (WAPA) and the Southwestern Power Administration
(SWPA) to enter into public-private financial arrangements
(third-party finance) to build or upgrade transmission
facilities if certain criteria are met.
Section 1223. Advanced transmission technologies
Section 1223 directs FERC to encourage the deployment of
advanced transmission technologies, including: high-temperature
lines; underground cables; advanced conductor technology; high-
capacity ceramic electric wire, connectors and insulators;
optimized transmission line configurations; and modular
equipment. The Committee is aware that the DOE has conducted
one or more studies on high temperature, low sag technologies,
the results of which the Committee would be interested in
receiving from the Department as soon as practicable.
Section 1224. Advanced power system technology incentive program
Section 1224 authorizes the Secretary of Energy to
establish an Advanced Power System Technology Incentive Program
to support deployment of certain advanced power system
technologies like fuel cells, turbines, or hybrid power systems
or power storage systems to generate or store electric energy.
Subtitle C--Transmission Operation Improvements
Section 1231. Open nondiscriminatory access
Section 1231 amends the FPA to authorize FERC to require
unregulated transmitting utilities to provide open access to
their transmission systems at rates that are comparable to
those that the unregulated transmitting utility charges itself
and on terms and conditions that are comparable to those the
utility charges itself that are not unduly discriminatory or
preferential. Small unregulated transmitting utilities, such as
distribution co-ops, as well as unregulated transmitting
utilities that do not own or operate significant transmission
facilities are exempt from this section.
Section 1232. Regional Transmission Organizations
Section 1232 amends the FPA to authorize FERC to encourage
and approve the voluntary formation of Transmission
Organizations.
FERC may not condition any order issued under the FPA on a
requirement that a transmitting utility transfer operational
control of jurisdictional facilities to a Transmission
Organization. The new language added to subsection (b) of
section 217 of the Federal Power Act by this section is
intended to prohibit FERC from requiring, or imposing as a
condition, that a transmitting utility transfer operational
control of jurisdictional facilities to a Transmission
Organization. It is not intended to limit FERC authority with
respect to transmitting utilities that are participating in
Transmission Organizations.
Transmission Organizations must report annually to FERC to
demonstrate their cost effectiveness.
Section 1233. Federal utility participation in Transmission
Organizations
Section 1233 authorizes the appropriate Federal regulatory
authority (the Secretary of Energy, the Administrator of a PMA
or the Board of Directors of TVA) to enter into a contract,
agreement or other arrangement transferring control and use of
all or part of the transmission system of a Federal utility to
a Transmission Organization.
Section 1234. Standard market design
Section 1234 terminates FERC's Proposed Rulemaking on
Standard Market Design.
Section 1235. Native load service obligation
Section 1235 entitles load-serving entities to exercise
firm transmission rights or equivalent tradable or financial
transmission rights to the extent needed to meet their service
obligation. This section does not affect the Commission's
authority under sections 205 and 206 to ensure that rates are
just and reasonable and not unduly discriminatory or
preferential. With respect to the Midwest ISO, nothing in
Section 218 is intended to guarantee that an entity shall be:
(1) entitled to a particular financial transmission right
allocation; (2) held harmless from applicable congestion
charges; or (3) exempt from an applicable congestion management
methodology within the Midwest ISO. The language of subsection
(c) is intended to provide the Commission with flexibility in
taking into account the policies, as opposed to the strict
letter of subsections (b) (1), (b) (2), and (b)(3) as well as
other considerations reflected in the Act, such as reliability
and system-wide customer costs, in addressing allocation
methodology changes proposed by the Midwest ISO.
Section 1236. Protection of transmission contracts in the Pacific
Northwest
Section 1236 protects firm transmission rights of entities
in the Pacific Northwest by allowing only voluntary conversion
of firm to financial transmission rights.
Subtitle D--Tranmission Rate Reform
Section 1241. Transmission infrastructure investment
Section 1241 directs FERC to issue rules on transmission
pricing policies that provide a return on equity that attracts
capital for investment in grid improvements and advanced
transmission technologies. This section directs FERC to allow
for the recovery of all prudently incurred costs necessary to
comply with reliability standards and Federal back-stop siting
needs.
Section 1242. Funding new interconnection and transmission upgrades
Section 1242 authorizes FERC to approve a participant
funding cost allocation plan, without regard to whether the
applicant is in a Transmission Organization, as long as it
results in just and reasonable rates.
Subtitle E--Amendments to PURPA
Section 1251. Net metering and additional standards
Section 1251 amends PURPA section 111(d) to require States
to consider implementing standards in the following areas:
(1) net metering (a requirement that utilities make net
metering, regarding on-site energy production, measurement and
billing, available to any electric consumer);
(2) fuel diversity (a requirement that utilities reduce
dependency on a single fuel source and increase fuel diversity,
including the use of renewables); and
(3) fossil fuel generation efficiency (a requirement that
utilities implement 10 year plans to increase fossil fuel
efficiency).
Section 1252. Smart metering
Section 1252 amends PURPA section 111(d) to require States
to consider implementing smart metering standards that require
electric utilities to offer time based rate schedules (such as
time-of-use pricing, critical-peak pricing, and real-time
pricing) that enable customers to manage energy use and cost
through advanced metering and communications technology.
Section 1253. Cogeneration and small power production purchase and sale
requirements
Section 1253 amends PURPA section 210 by ensuring that
qualifying facilities (QFs) meet specific criteria to be
eligible for mandatory purchase and sale benefits and that such
benefits terminate when a competitive wholesale market exists.
This section sets forth new criteria for future QFs to ensure
that they are fundamentally designed to support commercial or
industrial processes.
Section 1254. Interconnection
Section 1254 amends PURPA section 111(d) to require States
to consider best practices for promoting interconnection for
distributed generation.
Subtitle F--Market Transparency, Enforcement, and Consumer Protection
Section 1261. Market transparency rules
Section 1261 authorizes FERC to establish an electronic
information system to provide information about the
availability and price of wholesale electric energy and
transmission services. This section requires FERC to exempt
from disclosure information the disclosure of which would be
detrimental to the operation of an effective market or which
would jeopardize system security. This section provides that
this section shall not affect the CFTC's exclusive jurisdiction
with respect to commodities under the Commodity Exchange Act.
This section provides that FERC shall not compete with private
sector publishers of energy prices.
Section 1262. False Statements
Section 1262 amends the FPA to prohibit the filing of false
information regarding price of wholesale electricity and
availability of transmission capacity.
Section 1263. Market manipulation
Section 1263 amends the FPA to ban any manipulative or
deceptive device or contrivance (as those terms are used in
section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78j(b))), in connection with the purchase or sale of
electricity or FERC jurisdictional transmission services in
violation of FERC rules.
Section 1264. Enforcement
Section 1264 amends FPA section 306 to add an electric
utility to the list of persons that may file a complaint and
adds a transmitting utility to the list of persons against
which a complaint may be filed.
Section 1264 mends FPA section 313 to include any electric
utility in the procedures for review of Commission orders.
Section 1264 amends FPA section 307 to make electric
utilities and transmitting utilities subject to FERC
investigations and subject to FERC authority to obtain
information regarding wholesale sales of electricity and
transmission in interstate commerce.
Section 1264 amends FPA section 316 by increasing criminal
penalties for FPA violations to $1 million; 5 years
imprisonment; and $25,000 per day fines.
Section 1264 amends FPA section 316A by repealing exemption
from criminal penalties violations of sections 211-214.
Section 1264 amends FPA section 316A by extending civil
penalties to any violation of Part II of the FPA and increases
civil penalties to $1 million per day.
Section 1265. Refund effective date
Section 1265 amends FPA section 206 by making the refund
effective date the date of the filing instead of 60 days later.
Section 1266. Refund authority
Section 1266 amends FPA section 206(f) to provide that if
an entity described in section 201(f) voluntarily makes a
short-term (i.e., less than 31 days) sale of electricity that
violates Commission rules, the entity shall be subject to FERC
refund authority. The refund authority would not apply to
municipal or Federal utilities that sell less than 8 million
MWh of electricity per year or any electric co-ops. Special
provisions are included for the Bonneville Power Administration
(refund authority is limited to sales at unjust and
unreasonable rates, and only for BPA sales that were higher
than the highest just and reasonable rate charged by other
sellers in the same geographic market). With respect to TVA and
the PMAs, FERC's authority is limited to ordering refunds to
achieve just and reasonable rates.
Section 1267. Consumer privacy and unfair trade practices
Section 1267 requires the FTC to issue rules to protect
electric consumers from disclosure of consumer information
obtained in connection with the sale or delivery of
electricity. This section requires FTC to issue rules
prohibiting slamming (switching customers' service without
consent) and cramming (charging customers for services not
requested).
Section 1268. Office of Consumer Advocacy
Section 1268 establishes within DOE an Office of Consumer
Advocacy to represent energy customers on matters regarding
rates or services of public utilities and natural gas companies
at FERC hearings and in civil proceedings.
Section 1269. Authority of court to prohibit persons from serving as
officers, directors, and energy traders
Section 1269 allows courts to prevent anyone who
manipulates markets from serving as officers or directors of
electric utility companies or engaging in the business of
selling or purchasing electric or transmission services
jurisdictional to FERC.
Section 1270. Relief for extraordinary violations
Section 1270 gives FERC exclusive jurisdiction to determine
whether termination payments required by certain Western
Interconnection contracts are unjust and unreasonable.
Subtitle G--PUHCA Repeal--Merger Reform
Section 1271. Short Title
Section 1271 is self-explanatory.
Section 1272. Definitions
Section 1272 is self-explanatory.
Section 1273. Repeal of the Public Utility Holding Company Act of 1935
Section 1273 repeals the Public Utility Holding Company Act
of 1935 (PUHCA).
Section 1274. Federal access to books and records
Section 1274 gives FERC authority to require that each
holding company, associate company and affiliate company make
available to FERC books, accounts and records that FERC
determines are relevant to costs incurred by a public utility
or natural gas company that is an associate of a holding
company and that are necessary and appropriate to protect
utility customers with respect to jurisdictional rates.
Section 1275. State access to books and records
Section 1275 provides that upon request of a State
commission having jurisdiction to regulate a public utility
company in a holding company system, and under conditions to
ensure confidentiality of trade secrets or sensitive commercial
information, a holding company, associate company or affiliate
company is to make available to the State commission books,
accounts and records that have been identified in a proceeding
of the State commission and that the State commission
determines are relevant to costs incurred by such public
utility company and that are necessary and appropriate to
protect utility customers with respect to jurisdictional rates.
States can obtain books and records under state law or other
applicable Federal law.
Section 1276. Exemption authority
Section 1276 provides that not later than 90 days after the
date of enactment, FERC is to promulgate a final rule exempting
from the Federal books and records requirement any person that
is a holding company solely with respect to a qualifying
facility, exempt wholesale generator, or foreign utility
companies. FERC can exempt other records for any class of
transactions that it finds are not relevant to jurisdictional
rates.
Section 1277. Affiliate transactions
Section 1277 preserves the authority of FERC or a State
commission to determine if a jurisdictional public utility
company can recover in rates costs incurred through
transactions with affiliates.
Section 1278. Applicability
Section 1278 provides that PUHCA provisions do not apply to
the U.S. Government, any state or political subdivision, any
foreign government authority not operating in the United
States, or any agency, authority or instrumentality of any of
the above.
Section 1279. Effect on other regulations
Section 1279 preserves authorities of FERC or State
commissions under other applicable law.
Section 1280. Enforcement
Section 1280 authorizes FERC to use its enforcement
authorities under the FPA to enforce this subtitle.
Section 1281. Savings provisions
Section 1281 permits continuation of activities authorized
as of the date of enactment and preserves FERC authority under
the FPA and the Natural Gas Act.
Section 1282. Implementation
Section 1282 authorizes FERC to promulgate regulations to
implement this subtitle and to submit recommendations to
Congress for technical and conforming amendments within 4
months of enactment.
Section 1283. Transfer of resources
Section 1283 provides that the Securities and Exchange
Commission is to transfer books and records to FERC.
Section 1284. Effective date
Section 1284 provides that this subtitle takes effect 6
months after the date of enactment.
Section 1285. Service allocation
Section 1285 allows FERC to allocate non-power services
among associate companies in a holding company for the
protection of investors and consumers.
Section 1286. Authorization of appropriations
Section 1286 authorizes such funds as may be necessary to
carry out this subtitle.
Section 1287. Conforming amendments to the Federal Power Act
Section 1287 repeals FPA section 318, dealing with
conflicts in jurisdiction between PUHCA and the FPA.
Section 1288. Merger review reform
Section 1288 expands FERC's merger review authority and
increases transaction value thresholds from $50,000 to $10
million. Section 1288 provides FERC jurisdiction over
acquisitions of generation facilities used in interstate
commerce and acquisitions by public-utility companies of gas
utility companies. Section 1288 requires FERC to consider
factors such as effects on markets, rates, and regulation when
evaluating whether a transaction is consistent with the public
interest. Section 1288 also requires FERC to make an additional
finding that a transaction will not result in cross-
subsidizations of associate companies to the detriment of the
utility.
Subtitle H--Definitions
Section 1291. Definitions
Section 1291 clarifies the FPA definition of electric
utility to include any entity described in section 201(f) of
the Federal Power Act (FPA) that sells electric energy and adds
Federal power marketing agencies to the definition.
Section 1291 adds to the FPA a new definition of
transmitting utility. Under the new definition, a transmitting
utility is an entity, including an entity described in FPA
section 201(f), that owns, operates or controls facilities used
for the transmission of electric energy in interstate commerce
or for the sale of electric energy at wholesale. This
definition includes Transmission Organizations.
Section 1291 adds to the FPA a new definition for electric
cooperative. Under the new definition, an electric cooperative
is a cooperatively owned electric utility.
Section 1291 adds to the FPA a new definition for RTO.
Under the new definition, an RTO is an entity of sufficient
regional scope approved by FERC to exercise operational/
functional control of interstate transmission facilities and to
assure nondiscriminatory access to such facilities.
Section 1291 adds to the FPA a new definition for ISO.
Under the new definition, an ISO is an entity approved by FERC
to exercise operational/functional control of interstate
transmission facilities and to assure nondiscriminatory access
to such facilities.
Section 1291 adds to the FPA a new definition for
Transmission Organization. Under the new definition, a
Transmission Organization is an RTO, ISO, independent
transmission provider or other transmission organization
finally approved by FERC for the operation of transmission
facilities.
Section 1291 amends FPA section 201(f) to include electric
cooperatives that are either financed under the Rural
Electrification Act or that sell less than 4 million MWh of
electricity per year.
Subtitle I--Technical and Conforming Amendments
Section 1295. Conforming amendments
Section 1295 amends technical errors in the Federal Power
Act.
TITLE XIII--STUDIES
Title XIII requires studies on energy and water saving
measures in congressional buildings (Section 1301), increased
hydroelectric generation at existing Federal facilities
(Section 1302), the Alaskan natural gas pipeline (Section
1303), renewable energy on Federal land (Section 1304), coalbed
methane (Section 1305), backup fuel capabilities (Section
1306), energy rights-of-way on tribal lands to be conducted
jointly by DOE and DOI (Section 1307), Energy Policy Act of
1992 programs (Section 1308), the feasibility and effects of
reducing automobile fuel use (Section 1309), hybrid distributed
power systems (Section 1310), the mobility of scientific and
technical personnel (Section 1311), energy technologies
(Section 1312), research and development program evaluation
methodologies (Section 1313), transmission system monitoring
(Section 1314), competition in the wholesale and retail markets
for electric energy (Section 1315), the benefits of economic
dispatch (Section 1316), rapid electrical grid restoration
(Section 1317), cogeneration (Section 1318), petroleum and
natural gas storage inventory (Section 1319), natural gas
supply shortage (Section 1320), split-estate Federal oil and
gas leasing and development practices (Section 1321),
resolution of Federal resource development conflicts in the
Powder River Basin (Section 1322), energy efficiency standards
(Section 1323), telecommuting (Section 1324), oil bypass
filtration technology (Section 1325), total integrated thermal
systems (Section 1326), University collaboration (Section
1327), and reliability and consumer protection (Section 1328).
TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
Section 1401. Definitions
Section 1401 is self-explanatory
Section 1402. Terms and conditions
Section 1402 provides general terms and conditions for loan
guarantees made by the Secretary. The cost of a loan guarantee
must be appropriated or paid by the borrower. The guarantee
cannot exceed 80% of the project cost, and the term of the
obligation must require full repayment within the lesser of 30
years or 90 percent of the projected useful life of the asset.
The section provides specifics in the event of default by the
borrower. The section allows for the Secretary to make payments
on behalf of the borrower to avoid default, if appropriations
are provided for that specific purpose. The section also
provides for the collection of administrative fees. The full
faith and credit of the United States is pledged to the payment
of all guarantees.
Section 1403. Eligible projects
Subsection (a) contains broad criteria that any project
must meet to receive a loan guarantee under this title.
Subsection (b) lists the categories of eligible projects.
Projects must fall within the parameters of both subsections to
be eligible for a guarantee.
Subsection (c) identifies specific gasification projects
that are eligible for loan guarantees.
Subsection (d) provides emission levels that eligible
gasification projects must meet.
Subsection (e) clarifies that projects that receive tax
credits are not disqualified from also receiving a loan
guarantee under this title.
Section 1404. Authorization of Appropriations
Section 1404 is self-explanatory.
Cost and Budgetary Considerations
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the report is available, the
Chairman will request it to be printed in the Congressional
Record for the advice of the Senate.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S.--------. The bill contains a variety of
regulatory measures that impose Government-established
standards on private individuals and businesses in establishing
efficiency standards and similar programs. There may be some
economic costs associated with certain of the requirements.
There are also voluntary programs, such as the authorization
for Tribal governments to enter into agreements that would
allow them to assume full responsibility for development of
energy resources. Compliance with those agreements will require
commitments of resources and the establishment of a regulatory
program by the Tribes. Various grant and other assistance
programs will require submission of documentation or plans as a
condition for the assistance and the amendments to the Federal
Power Act may result in information being made available in
different modes or times than at present, especially under
market transparency provisions. The Committee believes that the
effects are not undue and are reasonable in light of the
benefits of the programs.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S.__, as ordered reported, with the exception of
the various studies required by the legislation and the
reporting associated with grant and financial assistance
programs, the Tribal energy development agreement
implementation, or the requirements associated with amendments
to the Federal Power Act and the Public Utility Regulatory
Purposes Act of 1978.
Executive Communications
Executive views on the original bill have not been
received.
ADDITIONAL VIEWS OF SENATOR BINGAMAN
Bob Galvin, the former Chairman of Motorola, once said that
``there are certain things that a country needs to set out to
do on purpose.'' I believe that establishing a good energy
policy is one of them. A policy, by definition, is a plan, a
reasoned course of action. Good policy does not happen by
accident. It requires purposeful forethought and planning. It
must be built on sound principles.
To my mind, a good energy policy must be anchored on four
fundamental principles.
First, it must increase our supplies of energy from all
available sources--oil, gas, coal, nuclear, and renewables. It
must ensure that energy resources that have not yet been
developed as extensively as they could be, such as renewable
energy, are given the assistance and the incentives they need
to make their maximum contribution.
Second, it must ensure that the energy we do produce is
transported and consumed as efficiently as possible. It must
ensure that adequate investments are made in the critical
infrastructure of ports and pipelines, transmission lines, and
other modes of moving energy from one place to another. It must
also ensure that consumers are not hurt by price spikes and
other problems caused by bottlenecks in the supply system. And,
importantly, it must ensure that energy is not wasted when it
reaches its point of end use.
Third, good energy policy must reduce the impact of energy
production and consumption on the environment. We need to
develop domestic energy resources, but we must do so without
unnecessary harm and degradation to the environment. And we
need to begin to address the environmental effects of energy
use, as well as energy production. 98 percent of the carbon
dioxide produced in the United States is associated somehow
with energy production and use. We can no longer afford an
energy policy that does not take into account environmental and
climate impact, any more than we can afford to have a climate
policy that ignores economic impacts.
Fourth and finally, sound energy policy requires energy
markets that are transparent and fair to consumers. Energy
markets are not inherently free markets. Yet we have
increasingly come to rely on market forces and signals to set
energy prices and shape our energy choices. When competitive
energy markets work fairly, everyone in the energy chain from
producer to consumer benefits. When they do not, as in
California and the West Coast electricity crisis, great
economic harm can be done. So we need to make sure that our
energy markets are transparent and fair to consumers.
The Committee bill, on balance, meets these four tests. It
encourages the production of both traditional and new energy
resources through research and development, financial
incentives, and regulatory reforms. It facilitates both the
development of new energy infrastructure and improvements in
efficiency. It avoids rolling back environmental protections.
And it increases consumer protections by making energy markets
more transparent and imposing sanctions on those who try to
manipulate those markets.
The bill is not perfect. It fails to include major
initiatives that I think it should contain. It does not contain
a renewable portfolio standard designed to increase the
percentage of our electricity that is produced from renewable
energy. It does not increase the corporate average fuel economy
standards of our cars and trucks, or even close the so-called
``SUV'' loophole. It does little to respond to the growing
challenge of global warming.
The Committee bill also contains several provisions it
should not. Chief among them is the hydroelectric relicensing
provision. Although it is a substantial improvement over
earlier proposals, it is still troubling. It creates a tilted
playing field that places the interests of dam operators over
those of states, Indian tribes, and recreational users. And it
creates a ``trial-type'' appeal process for resolving licensing
disputes that will create substantial new delays of Dickensian
proportions.
I hope that the Senate may yet correct the deficiencies
that remain and resist amendments that would undermine the
principles I have outlined. But, even as it stands, the
benefits of the bill outweigh its deficiencies, and I am
pleased to support it and recommend it to my colleagues.
Good energy legislation, like all good legislation, is the
product of consensus, of striking a balance, of finding a
compromise, between disparate and often discordant ideas. The
quality of the product depends upon the quality of the process
that is used to produce it. The quality of this bill owes much
to Chairman's judicious leadership, his patience, his openness
to new ideas, and his determined effort to reach a bipartisan
consensus, for which he is to be commended.
Jeff Bingman.
Changes in Existing Law
In compliance with paragraph 12 of Rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the original bill, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
TABLE OF CONTENTS
Page
1. National Energy Conservation Policy Act, Public Law 95-619, as
Amended (42 U.S.C. 8201 et seq.)............................... 62
2. Legislative Branch Appropriations Act, 1999, Public Law 105-
275 (2. U.S.C. 1815)........................................... 69
3. Energy Conservation and Production Act, Public Law 94-385, as
Amended (42 U.S.C. 6801 et seq.)............................... 70
4. Solid Waste Disposal Act, Public Law 89-272, as Amended (42
U.S.C. 6901 et seq.)........................................... 71
5. Energy Policy and Conservation Act, Public Law 94-163, as
Amended (42 U.S.C. 6201 et seq.)............................... 73
6. United States Housing Act of 1937, Act of September 1, 1937,
Chapter 896, as Amended (42 U.S.C. 1437 et seq.)............... 104
7. Cranston-Gonzalez National Affordable Housing Act, Public Law
101-625, as Amended (42 U.S.C. 12701 et seq.).................. 105
8. Energy Policy Act of 1992, Public Law 102-486, as Amended (42
U.S.C. 13211 et seq.).......................................... 106
9. Farm Security and Rural Investment Act of 2002, Public Law
107-171, (7 U.S.C. 8108(a)(3)(A)).............................. 131
10. Geothermal Steam Act of 1970, Public Law 91-581, as Amended
(30 U.S.C. 1001 et seq.)....................................... 131
11. Federal Power Act, Act of June 10, 1920, Chapter 285, as
Amended (16 U.S.C. 791A-825R).................................. 145
12. Mineral Leasing Act, Act of February 25, 1920, as Amended (30
U.S.C. 181 et seq.)............................................ 175
13. Appropriations for the Department of the Interior and Related
Agencies for the Fiscal Year Ending September 30, 1981, Public
Law 96-514..................................................... 178
14. National Petroleum Reserve in Alaska, Public Law 94-258 as
Amended Through P.L. 108-68, June 18, 2003..................... 180
15. Natural Gas Act, Act of June 21, 1938, Chapter 556, as
Amended (15 U.S.C. 717-717W)................................... 186
16. Natural Gas Policy Act of 1978, Public Law 95-621............ 192
17. Coastal Zone Management Act of 1972, Public Law 92-583, 86
Stat. 1280, as Amended......................................... 193
18. Public Law 106-511, 114 Stat. 2376........................... 194
19. The Native American Housing and Self-Determination Act of
1996, Public Law 104-330, as Amended (25 U.S.C. 4101 et seq.).. 195
20. Atomic Energy Act of 1954, Act of August 1, 1946, Chapter
724, as Amended by the Act of August 30, 1954, Chapter 1073, as
Amended (42 U.S.C. 2011 et seq.)............................... 195
21. Title 23, United States Code, Highways, Public Law 109-13.... 207
22. Department of Energy Organization Act, Public Law 95-91, as
Amended (42 U.S.C. 7101 et seq.)............................... 209
23. Department of Energy Science Education Enhancement Act, Part
E of Title XXXI of Public Law 101-510, as Amended (42 U.S.C.
7381-7381E).................................................... 215
24. Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990, Public Law 101-566, as Amended (42
U.S.C. 12401 et seq.).......................................... 217
25. Methane Hydrate Research and Development Act of 2000, Act May
2, 2000, Public Law 106-193 (30 U.S.C. 1902 Note).............. 228
26. High-Performance Computing Act of 1991, Public Law 102-194,
as Amended (15 U.S.C. 5501 et seq.)............................ 235
27. Coal Research and Development Act of 1960, Public Law 96-480
(30 U.S.C. 661 et seq.)........................................ 236
28. Title 35, United States Code, Public Law 96-517.............. 237
29. Federal Nonnuclear Energy Research and Development Act of
1974, Public Law 93-577........................................ 238
30. Stevenson-Wydler Technology Innovation Act of 1980, 15 U.S.C.
3712........................................................... 270
31. Agricultural Risk Protection Act of 2000, Public Law 106-224,
as Amended..................................................... 270
32. Public Utility Holding Company Act of 1935, Act of August 26,
1935, Chapter 687, as Amended (15 U.S.C. 79-79Z-6)............. 271
33. Public Utility Regulatory Policies Act of 1978, Public Law
95-617, as Amended (16 U.S.C. 2601 et seq.).................... 321
NATIONAL ENERGY CONSERVATION POLICY ACT PUBLIC LAW 95-619 AS AMENDED
(42 U.S.C. 8201 ET SEQ.)
* * * * * * *
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE AND TABLE OF CONTENTS
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVES
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
Sec. 550. Survey of energy saving potential.
Sec. 551. Energy and water savings measures in congressional buildings.
Sec. 552. Federal procurement of energy efficient products.
Sec. [551.] 553. Definitions.
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVES
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Performance Requirement for Federal Buildings.--
(1) [Subject to paragraph (2), each agency shall apply energy
conservation measures to, and shall improve the design for the
construction of, its Federal buildings so that the energy
consumption per gross square foot of its Federal buildings in
use during the fiscal year 1995 is at least 10 percent less
than the energy consumption per gross square foot of its
Federal buildings in use during the fiscal year 1985 and so
that the energy consumption per gross square foot of its
Federal buildings in use during the fiscal year 2000 is at
least 20 percent less than the energy consumption per gross
square foot of its Federal buildings in use during fiscal year
1985.] (A) Subject to paragraph (2), each agency shall apply
energy conservation measures to, and shall improve the design
for the construction of, the Federal buildings of the agency
(including each industrial or laboratory facility) so that the
energy consumption for each gross square foot of the Federal
buildings of the agency for fiscal years 2006 through 2015 is
reduced, as compared with the energy consumption for each gross
square foot of the Federal buildings of the agency for fiscal
year 2004, by the percentage specified in the following table:
Fiscal year Percentage reduction
2006.............................................................. 2
2007.............................................................. 4
2008.............................................................. 6
2009.............................................................. 8
2010.............................................................. 10
2011.............................................................. 12
2012.............................................................. 14
2013.............................................................. 16
2014.............................................................. 18
2015.............................................................. 20
(B) The energy reduction goals and baseline established in
subparagraph (A) supersede--
(i) all goals and baselines under this paragraph in
effect on the day before the date of enactment of this
subparagraph; and
(ii) any related reporting requirements.
(2) An agency may exclude from the requirements of
paragraph (1) any building, and the associated energy
consumption and gross square footage, in which energy intensive
activities are carried out. Each agency shall identify and list
in each report made under section 548(a) the buildings
designated by it for such exclusion.
(3) Not later than December 31, 2013, the Secretary shall--
(A) review the results of the implementation of the
energy performance requirement established under
paragraph (1); and
(B) submit to Congress recommendations concerning
energy performance requirements for each of fiscal
years 2015 through 2024.
* * * * * * *
(c) Exclusions.--(1) [An agency may exclude, from the
energy consumption requirements for the year 2000 established
under subsection (a) and the requirements of subsection (b)(1),
any Federal building or collection of Federal buildings, and
the associated energy consumption and gross square footage, if
the head of such agency finds that compliance with such
requirements would be impractical. A finding of
impracticability shall be based on the energy intensiveness of
activities carried out in such Federal buildings or collection
of Federal buildings, the type and amount of energy consumed,
the technical feasibility of making the desired changes, and,
in the cases of the Departments of Defense and Energy, the
unique character of certain facilities operated by such
Departments.] (A) An agency may exclude, from the energy
performance requirement for a fiscal year established under
subsection (a) and the energy management requirement
established undersubsection (b), any Federal building or
collection of Federal buildings, if the head of the agency finds that--
(i) compliance with those requirements would be
impracticable;
(ii) the agency has completed and submitted all
federally required energy management reports;
(iii) the agency has achieved compliance with the
energy efficiency requirements of this Act, the Energy
Policy Act of 1992 (42 U.S.C. 13201 et seq.), Executive
orders, and other Federal law; and
(iv) the agency has implemented all practicable,
life-cycle cost-effective projects with respect to the
Federal building or collection of Federal buildings to
be excluded.
(B) A finding of impracticability under subparagraph (A)(i)
shall be based on--
(i) the energy intensiveness of activities carried
out in the Federal building or collection of Federal
buildings; or
(ii) the fact that the Federal building or collection
of Federal buildings is used in the performance of a
national security function.
(2) Each agency shall identify and list, in each report
made under section 548(a), the Federal buildings designated by
it for such exclusion. The Secretary shall review such findings
for consistency with the [impracticability standards] standards
for exclusion set forth in paragraph (1), and may within 90
days after receipt of the findings, reverse [a finding of
impracticability] the exclusion. In the case of any such
reversal, the agency shall comply with the [energy consumption
requirements] requirements of subsections (a) and (b)(1) for
the building concerned.
(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).
* * * * * * *
(e) Metering of Energy Use.--(1)(A) Not later than October
1, 2012, in accordance with guidelines established by the
Secretary under paragraph (2), each Federal building shall, for
the purposes of efficient use of energy and reduction in the
cost of electricity used in the building, be metered or
submetered.
(B) Each agency shall use, to the maximum extent
practicable, advanced meters or advanced metering
devices that provide data at least daily on, and that
measure at least hourly, consumption of electricity in
the Federal buildings of the agency.
(C) The data shall be--
(i) incorporated into Federal energy tracking
systems; and
(ii) made available to Federal facility
energy managers.
(2)(A) Not later than 180 days after the date of enactment
of this subsection, the Secretary (in consultation with the
Secretary of Defense, the Administrator of General Services,
representatives from the metering industry, utility industry,
energy services industry, energy efficiency industry, energy
efficiency advocacy organizations, national laboratories, and
universities, and Federal facility energy managers) shall
establish guidelines for agencies to carry out paragraph (1).
(B) The guidelines shall--
(i) take into consideration--
(I) the cost of metering and submetering and
the reduced cost of operation and maintenance
expected to result from metering and
submetering;
(II) the extent to which metering and
submetering are expected to result in increased
potential for energy management, increased
potential for energy savings and energy
efficiency improvement, and cost and energy
savings because of utility contract
aggregation; and
(III) the measurement and verification
protocols of the Department of Energy;
(ii) include recommendations concerning the amount of
funds and the number of trained personnel necessary to
gather and use the metering information to track and
reduce energy use;
(iii) establish priorities for types and locations of
buildings to be metered and submetered based on cost-
effectiveness and a schedule of 1 or more dates, not
later than 1 year after the date of issuance of the
guidelines, on which paragraph (1) takes effect; and
(iv) establish exclusions from the requirements of
paragraph (1) based on the de minimis quantity of
energy use of a Federal building, industrial process,
or structure.
(3) Not later than 180 days after the date on which
guidelines are established under paragraph (2), in a report
submitted by an agency under section 548(a), the agency shall
submit to the Secretary a plan describing the manner in which
the agency will implement paragraph (1), including--
(A) the manner in which the agency will designate
personnel primarily responsible for carrying out that
implementation; and
(B) demonstration by the agency, complete with
documentation, of any finding that the use of advanced
meters or advanced metering devices described in
paragraph (1) is not practicable.
* * * * * * *
SEC. 546. INCENTIVES FOR AGENCIES. * * *
(d). * * *
(2) * * *
(G) succeeded in the implementation of the
guidelines established under section 159 of the
Energy Policy Act of 1992 (42 U.S.C. 8262e).
(e) Retention of Energy and Water Savings.--(1) An agency
may retain any funds appropriated to the agency for energy
expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of
subsections (a) and (b) of section 543, that are not expended
because of energy savings or water savings.
(2) Except as otherwise provided by law, funds described
in paragraph (1) may be used by an agency only for energy
efficiency, water conservation, or unconventional and renewable
energy resources projects.
* * * * * * *
SEC. 548. REPORTS.
(a) * * *
(b) Reports to the President and Congress.--The Secretary
shall report, not later than April 2 of each year, with respect
to each fiscal year beginning after the date of the enactment
of this subsection, to the President and Congress--
* * * * * * *
SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.
(a) * * *
* * * * * * *
(d) Report.--As soon as practicable after the completion of
the project carried out under this section, the Secretary shall
transmit a report of the findings and conclusions of the
project to the Committee on Energy and Natural Resources and
the Committee on Governmental Affairs of the Senate, the
Committee on Energy and Commerce, the Committee on Government
Operations, and the Committee on Public Works and
Transportation of the House of Representatives, and the
agencies who own the buildings involved in such project. Such
report shall include an analysis of the probability of each
agency achieving [the 20 percent reduction goal established
under section 543(a) of the National Energy Conservation Policy
Act (42 U.S.C. 8253(a)).] each of the energy reduction goals
established under section 543(a).
* * * * * * *
SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL BUILDINGS.
(a) Definitions.--In this section:
(1) Congressional building.--The term ``congressional
building'' means a facility administered by Congress.
(2) Plan.--The term ``plan'' means an energy
conservation and management plan developed under
subsection (b)(1).
(b) Plan.--
(1) In general.--The Architect of the Capitol shall
develop, update, and implement a cost-effective energy
conservation and management plan for congressional
buildings to meet the energy performance requirements
for Federal buildings established under section
543(a)(1).
(2) Requirements.--The plan shall include--
(A) a description of the life-cycle cost
analysis used to determine the cost-
effectiveness of proposed energy efficiency
projects;
(B) a schedule that ensures that complete
energy surveys of all congressional buildings
are conducted every 5 years to determine the
cost and payback period of energy and water
conservation measures;
(C) a strategy for installation of life-cycle
cost-effective energy and water conservation
measures;
(D) the results of a study of the costs and
benefits of installation of submetering in
congressional buildings; and
(E) information packages and ``how-to''
guides for each Member and employing authority
of Congress that describe simple and cost-
effective methods to save energy and taxpayer
dollars in congressional buildings.
(3) Submission to congress.--Not later than 180 days
after the date of enactment of the Energy Policy Act of
2005, the Architect of the Capitol shall submit to
Congress the plan developed under paragraph (1).
(c) Annual Report.--
(1) In general.--The Architect of the Capitol shall
annually submit to Congress a report on congressional
energy management and conservation programs carried out
for congressional buildings under this section.
(2) Requirements.--A report submitted under paragraph
(1) shall describe in detail--
(A) energy expenditures and savings estimates
for each congressional building;
(B) any energy management and conservation
projects for congressional buildings; and
(C) future priorities to ensure compliance
with this section.
* * * * * * *
SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Definitions.--In this section:
(1) The term ``Energy Star product'' means a product
that is rated for energy efficiency under an Energy
Star program.
(2) The term ``Energy Star program'' means the
program established by section 324A of the Energy
Policy and Conservation Act.
(3) The term ``executive agency'' has the meaning
given the term in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403).
(4) The term ``FEMP designated product'' means a
product that is designated under the Federal Energy
Management Program of the Department of Energy as being
among the highest 25 percent of equivalent products for
energy efficiency.
(b) Procurement of Energy Efficient Products.--(1) Except
as provided in paragraph (2), to meet the requirements of an
executive agency for an energy consuming product, the head of
the executive agency shall procure--
(A) an Energy Star product; or
(B) a FEMP designated product.
(2) The head of an executive agency shall not be required
to comply with paragraph (1) if the head of the executive
agency specifies in writing that--
(A) taking into account energy cost savings, an
Energy Star product or FEMP designated product is not
cost-effective over the life of the product; or
(B) no Energy Star product or FEMP designated product
is reasonably available that meets the functional
requirements of the executive agency.
(3) The head of an executive agency shall incorporate
criteria for energy efficiency that are consistent with the
criteria used for rating Energy Star products and FEMP
designated products into--
(A) the specifications for any procurements involving
energy consuming products and systems, including--
(i) guide specifications;
(ii) project specifications; and
(iii) construction, renovation, and services
contracts that include the provision of energy
consuming products and systems; and
(B) the factors for the evaluation of offers received
for the sprocurement.
(c) Listing of Energy Efficient Products in Federal
Catalogs.--(1) Any inventory or listing of products by the
General Services Administration or the Defense Logistics Agency
shall clearly identify and prominently display Energy Star
products and FEMP designated products.
(2)(A) Except as provided in subparagraph (B), the General
Services Administration or the Defense Logistics Agency shall
supply only Energy Star products or FEMP designated products
for all product categories covered by the Energy Star program
or the Federal Energy Management Program.
(B) Subparagraph (A) shall not apply if an agency ordering
a product specifies in writing that--
(i) taking into account energy cost savings, no
Energy Star product or FEMP designated product is cost-
effective for the intended application over the life of
the product; or
(ii) no Energy Star product or FEMP designated
product is available to meet the functional
requirements of the ordering agency.
(d) Specific Products.--(1) In the case of an electric
motor of 1 to 500 horsepower, an executive agency shall select
only a premium efficient motor that meets the standard
established by the Secretary under paragraph (2).
(2) Not later than 120 days after the date of enactment of
this subsection and after considering the recommendations of
associated electric motor manufacturers and energy efficiency
groups, the Secretary shall establish a standard for premium
efficient motors.
(3)(A) Each Federal agency is encouraged to take actions
(such as appropriate cleaning and maintenance) to maximize the
efficiency of air conditioning and refrigeration equipment,
including the use of a system treatment or additive that--
(i) would reduce the electricity consumed by air
conditioning and refrigeration equipment; and
(ii) meets the criteria specified in subparagraph
(B).
(B) A system treatment or additive referred to in
subparagraph (A) shall be--
(i) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and
refrigeration equipment without having an adverse
impact on--
(I) air conditioning and refrigeration
performance (including cooling capacity); or
(II) the useful life of the equipment;
(ii) determined by the Administrator of the
Environmental Protection Agency to be environmentally
safe; and
(iii) shown, in tests conducted by the National
Institute of Standards and Technology, in accordance
with Department of Energy test procedures, to increase
the seasonal energy efficiency ratio (SEER) or energy
efficiency ratio (EER) without having any adverse
impact on the system, system components, the
refrigerant or lubricant, or other materials in the
system.
(4) The results of the tests described in paragraph
(3)(B)(iii) shall be published in the Federal Register for
public review and comment.
(5) For purposes of this subsection, a hardware device or
primary refrigerant shall not be considered an additive.
(e) Regulations.--Not later than 180 days after the date of
enactment of this section, the Secretary shall issue guidelines
to carry out this section.
SEC. [551.] 553. DEFINITIONS. * * *
* * * * * * *
TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS
SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.
(a) * * *
(c) Sunset and Reporting Requirements.--The authority to
enter into new contracts under this section shall cease to be
effective on October 1, 2016.
----------
LEGISLATIVE BRANCH APPROPRIATIONS ACT, 1999--PUBLIC LAW 105-275 (2
U.S.C. 1815)
* * * * * * *
[Sec. 310. Energy conservation and management
[The Architect of the Capitol--
[(1) shall develop and implement a cost-effective
energy conservation strategy for all facilities
currently administered by Congress to achieve a net
reduction of 20 percent in energy consumption on the
congressional campus compared to fiscal year 1991
consumption levels on a Btu-per-gross-square-foot basis
not later than 7 years after October 21, 1998;
[(2) shall submit to Congress no later than 10 months
after October 21, 1998, a comprehensive energy
conservation and management plan which includes life
cycle costs methods to determine the cost-effectiveness
of proposed energy efficiency projects;
[(3) shall submit to the Committee on Appropriations
in the Senate and the House of Representatives a
request for the amount of appropriations necessary to
carry out this section;
[(4) shall present to Congress annually a report on
congressional energy management and conservation
programs which details energy expenditures for each
facility, energy management and conservation projects,
and future priorities to ensure compliance with the
requirements of this section;
[(5) shall perform energy surveys of all
congressional buildings and update such surveys as
needed;
[(6) shall use such surveys to determine the cost and
payback period of energy and water conservation
measures likely to achieve the required energy
consumption levels;
[(7) shall install energy and water conservation
measures that will achieve the requirements through
previously determined life cycle cost methods and
procedures;
[(8) may contract with nongovernmental entities and
employ private sector capital to finance energy
conservation projects and achieve energy consumption
targets;
[(9) may develop innovative contracting methods that
will attract private sector funding for the
installation of energy-efficient and renewable energy
technology to meet the requirements of this section;
[(10) may participate in the Department of Energy's
Financing Renewable Energy and Efficiency (FREE
Savings) contracts program for Federal Government
facilities; and
[(11) shall produce information packages and ``how-
to'' guides for each Member and employing authority of
the Congress that detail simple, cost-effective methods
to save energy and taxpayer dollars.]
----------
ENERGY CONSERVATION AND PRODUCTION ACT--PUBLIC LAW 94-385, AS AMENDED
(42 U.S.C. 6801 ET SEQ.)
* * * * * * *
SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.
(a)(1) * * *
(2) The standards established under paragraph (1)
shall--
(A) contain energy saving and renewable energy
specifications that meet or exceed the energy saving
and renewable energy specifications of [CABO Model
Energy Code, 1992 (in the case of residential
buildings) or ASHRAE Standard 90.1-1989] the 2004
International Energy Conservation Code (in the case of
residential buildings) or ASHRAE Standard 90.1-2004 (in
the case of commercial buildings);
* * * * * * *
(3)(A) Not later than 1 year after the date of enactment
of this paragraph, the Secretary shall establish, by rule,
revised Federal building energy efficiency performance
standards that require that--
(i) if life-cycle cost-effective for new Federal
buildings--
(I) the buildings be designed to achieve
energy consumption levels that are at least 30
percent below the levels established in the
version of the ASHRAE Standard or the
International Energy Conservation Code, as
appropriate, that is in effect as of the date
of enactment of this paragraph; and
(II) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings; and
(ii) if water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-
effective.
(B) Not later than 1 year after the date of approval of
each subsequent revision of the ASHRAE Standard or the
International Energy Conservation Code, as appropriate, the
Secretary shall determine, based on the cost-effectiveness of
the requirements under the amendment, whether the revised
standards established under this paragraph should be updated to
reflect the amendment.
(C) In the budget request of the Federal agency for each
fiscal year and each report submitted by the Federal agency
under section 548(a) of the National Energy Conservation Policy
Act (42 U.S.C. 8258(a)), the head of each Federal agency shall
include--
(i) a list of all new Federal buildings owned,
operated, or controlled by the Federal agency; and
(ii) a statement specifying whether the Federal
buildings meet or exceed the revised standards
established under this paragraph.
* * * * * * *
Sec. 422. For the purpose of carrying out the
weatherization program under this part, there are authorized to
be appropriated [for fiscal years 1999 through 2003 such sums
as may be necessary] $325,000,000 for fiscal year 2006,
$400,000,000 for fiscal year 2007, and $500,000,000 for fiscal
year 2008.
----------
SOLID WASTE DISPOSAL ACT--PUBLIC LAW 89-272, AS AMENDED (42 U.S.C. 6901
ET SEQ.)
SHORT TITLE AND TABLE OF CONTENTS
* * * * * * *
Subtitle F--Federal Responsibilities
Sec. 6001. Application of Federal, State and local law to Federal
facilities.
Sec. 6002. Federal Procurement.
Sec. 6003. Cooperation with Environmental Protection Agency.
Sec. 6004. Applicability of solid waste disposal guidelines to executive
agencies.
Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete.
* * * * * * *
Subtitle F--Federal Responsibilities
* * * * * * *
Sec. 6005. (a) Definitions.--In this section:
(1) Agency head.--The term ``agency head'' means--
(A) the Secretary of Transportation; and
(B) the head of any other Federal agency
that, on a regular basis, procures, or provides
Federal funds to pay or assist in paying the
cost of procuring, material for cement or
concrete projects.
(2) Cement or concrete project.--The term ``cement or
concrete project'' means a project for the construction
or maintenance of a highway or other transportation
facility or a Federal, State, or local government
building or other public facility that--
(A) involves the procurement of cement or
concrete; and
(B) is carried out, in whole or in part,
using Federal funds.
(3) Recovered mineral component.--The term
``recovered mineral component'' means--
(A) ground granulated blast furnace slag;
(B) coal combustion fly ash; and
(C) any other waste material or byproduct
recovered or diverted from solid waste that the
Administrator, in consultation with an agency
head, determines should be treated as recovered
mineral component under this section for use in
cement or concrete projects paid for, in whole
or in part, by the agency head.
(b) Implementation of Requirements.--
(1) In general.--Not later than 1 year after the date
of enactment of this section, the Administrator and
each agency head shall take such actions as are
necessary to implement fully all procurement
requirements and incentives in effect as of the date of
enactment of this section (including guidelines under
section 6002) that provide for the use of cement and
concrete incorporating recovered mineral component in
cement or concrete projects.
(2) Priority.--In carrying out paragraph (1), an
agency head shall give priority to achieving greater
use of recovered mineral component in cement or
concrete projects for which recovered mineral
components historically have not been used or have been
used only minimally.
(3) Federal Procurement Requirements.--The
Administrator and each agencyhead 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).
----------
ENERGY POLICY AND CONSERVATION ACT--Public Law 94-163, as amended (42
U.S.C. 6201 et seq.)
* * * * * * *
TABLE OF CONTENTS
* * * * * * *
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * * * *
Part C--Authority to Contract for Petroleum Product not Owned by the
United States
* * * * * * *
Sec. 174. Contracts for which implementing legislation is needed.
[Part D--Expiration
[Sec. 181. Expiration.]
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.
TITLE II--STANDBY ENERGY AUTHORITIES
* * * * * * *
[Part C--Energy Emergency Preparedness
[Sec. 271. Congressional findings, policy, and purpose.
[Sec. 272. Preparation for petroleum supply interruptions.
[Sec. 273. Summer fill and fuel budgeting programs.]
Part C--Summer Fill and Fuel Budgeting Programs
Sec. 273. Summer fill and fuel budgeting programs.
[Part D--Expiration
Sec. 281. Expiration.]
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
* * * * * * *
Sec. 324. Labeling
Sec. 324A. Energy Star Program
* * * * * * *
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * * * *
Part B--Strategic Petroleum Reserve
[Sec. 166. There are authorized to be appropriated such
sums as may be necessary to implement this part, to remain
available until expended.]
AUTHORIZATION OF APPROPRIATIONS
Sec. 166. There are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this part
and part D, to remain available until expended.
* * * * * * *
CONDITIONS FOR RELEASE; PLAN
Sec. 183.* * *
(b) Definition.--For purposes of this section a
``dislocation in the heating oil market'' shall be deemed to
occur only when--
(1) The price differential between crude oil, as
reflected in an industry daily publication such as
``Platt's Oilgram Price Report'' or ``Oil Daily'' and
No. 2 heating oil, as reported in the Energy
Information Administration's retail price data for the
Northeast, increases [by more than 60 percent over its
5 year rolling average for the months of mid-October
through March] 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), and
continues for 7 consecutive days; and
(2) The price differential continues to increase
during the most recent week for which price information
is available.
* * * * * * *
[Sec. 186. There are authorized to be appropriated such
sums as may be necessary to implement this part.]
* * * * * * *
[Part E--Expiration
[Sec. 191. Except as otherwise provided in title I, all
authority under any provision of title I (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, September 30, 2008, but such expiration
shall not affect any action or pending proceedings, civil or
criminal, not finally determined on such date, nor any action
or proceeding based upon any act committed prior to midnight,
September 30, 2008.]
* * * * * * *
TITLE II--STANDBY ENERGY AUTHORITIES
* * * * * * *
Part C--Summer Fill and Fuel Budgeting Programs
SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.
Section 602(a) of P.L. 106-469 (114 Stat. 2040) indicated
that this new section 273 should be added at the end of part C
of title II, but, section 104(3) of the same Public Law
repealed that part C.
(a) Definitions.--In this section:
(1) Budget contract.--The term ``budget contract''
means a contract between a retailer and a consumer
under which the heating expenses of the consumer are
spread evenly over a period of months.
(2) Fixed-price contract.--The term ``fixed-price
contract'' means a contract between a retailer and a
consumer under which the retailer charges the consumer
a set price for propane, kerosene, or heating oil
without regard to market price fluctuations.
(3) Price cap contract.--The term ``price cap
contract'' means a contract between a retailer and a
consumer under which the retailer charges the consumer
the market price for propane, kerosene, or heating oil,
but the cost of the propane, kerosene, or heating oil
may exceed a maximum amount stated in the contract.
(b) Assistance.--At the request of the chief executive
officer of a State, the Secretary shall provide information,
technical assistance, and funding--
(1) to develop education and outreach programs to
encourage consumers to fill their storage facilities
for propane, kerosene, and heating oil during the
summer months; and
(2) to promote the use of budget contracts, price cap
contracts, fixed-price contracts, and other
advantageous financial arrangements, to avoid severe
seasonal price increases for and supply shortages of
those products.
(c) Preference.--In implementing this section, the
Secretary shall give preference to States that contribute
public funds or leverage private funds to develop State summer
fill and fuel budgeting programs.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $25,000,000 for fiscal year 2001; and
(2) such sums as are necessary for each fiscal year
thereafter.
[(e) Inapplicability of Expiration Provision.--Section 281
does not apply to this section.]
* * * * * * *
[Part D--Expiration
Sec. 281. Except as otherwise provided in title II, all
authority under any provision of title II (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, September 30, 2008, but such expiration
shall not affect any action or pending proceedings, civil or
criminal, not finally determined on such date, nor any action
or proceeding based upon any act committed prior to midnight,
September 30, 2008.]
* * * * * * *
Sec. 321. For purposes of this part:
* * * * * * *
(29)(D)(i) The term ``F40T12 lamp'' means a nominal
40 watt tubular fluorescent lamp which is 48 inches in
length and one-and-a-half inches in diameter, and
conforms to ANSI standard [C78.1-1978(R1984)] C78.81-
2003 (Data Sheet 7881-ANSI-1010-1).
(ii) The term ``F96T12 lamp'' means a nominal 75 watt
tubular fluorescent lamp which is 96 inches in length
and one-and-a-half inches in diameter, and conforms to
ANSI standard [C78.3-1978(R1984)] C78.81-2003 (Data
Sheet 7881-ANSI-3007-1).
(iii) The term ``F96T12HO lamp'' means a nominal 110
watt tubular fluorescent lamp which is 96 inches in
length and one-and-a-half inches in diameter, and
conforms to ANSI standard [C78.1-1978(R1984)] C78.81-
2003 (Data Sheet 7881-ANSI-1019-1).
* * * * * * *
(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.
* * * * * * *
(30)(S)(i) The term ``medium base compact fluorescent
lamp'' means an integrally ballasted fluorescent lamp
with a medium screw base and a rated input voltage of
115 to 130 volts and which is designed as a direct
replacement for a general service incandescent lamp.
(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.
* * * * * * *
(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.
* * * * * * *
Sec. 323. * * *
(b) Amended and New Procedures.--
* * * * * * *
(9) Test procedures for illuminated exit signs shall be
based on the test method used under version 2.0 of the Energy
Star program of the Environmental Protection Agency for
illuminated exit signs.
(10)(A) Test procedures for distribution transformers and
low voltage dry-type distribution transformers shall be based
on the ``Standard Test Method for Measuring the Energy
Consumption of Distribution Transformers'' prescribed by the
National Electrical Manufacturers Association (NEMA TP 2-1998).
(B) The Secretary may review and revise the test procedures
established under subparagraph (A).
(C) For purposes of section 346(a), the test procedures
established under subparagraph (A) shall be considered to be
the testing requirements prescribed by the Secretary under
section 346(a)(1) for distribution transformers for which the
Secretary makes a determination that energy conservation
standards would--
(i) be technologically feasible and economically
justified; and
(ii) result in significant energy savings.
(11) Test procedures for traffic signal modules and
pedestrian modules shall be based on the test method used under
the Energy Star program of the Environmental Protection Agency
for traffic signal modules, as in effect on the date of
enactment of this paragraph.
(12)(A) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods for compact
fluorescent lamps used under the August 9, 2001, version of the
Energy Star program of the Environmental Protection Agency and
the Department of Energy.
(B) Except as provided in subparagraph (C), medium base
compact fluorescent lamps shall meet all test requirements for
regulated parameters of section 325(cc).
(C) Notwithstanding subparagraph (B), if manufacturers
document engineering predictions and analysis that support
expected attainment of lumen maintenance at 40 percent rated
life and lamp lifetime, medium base compact fluorescent lamps
may be marketed before completion of the testing of lamp life
and lumen maintenance at 40 percent of rated life.
(13) Test procedures for dehumidifiers shall be based on
the test criteria used under the Energy Star Program
Requirements for Dehumidifiers developed by the Environmental
Protection Agency, as in effect on the date of enactment of
this paragraph unless revised by the Secretary pursuant to this
section.
(14) The test procedure for measuring flow rate for
commercial prerinse spray valves shall be based on American
Society for Testing and Materials Standard F2324, entitled
``Standard Test Method for Pre-Rinse Spray Valves.''
(15) The test procedure for refrigerated bottled or canned
beverage vending machines shall be based on American National
Standards Institute/American Society of Heating, Refrigerating
and Air-Conditioning Engineers Standard 32.1-2004, entitled
``Methods of Testing for Rating Vending Machines for Bottled,
Canned or Other Sealed Beverages''.
* * * * * * *
(f) Additional Consumer and Commercial Products.--(1) Not
later than 2 years after the date of enactment of this
subsection, the Secretary shall prescribe testing requirements
for--
(A) suspended ceiling fans; and
(B) refrigerated bottled or canned beverage vending
machines.
(2) To the maximum extent practicable, the testing
requirements prescribed under paragraph (1) shall be based on
existing test procedures used in industry.
* * * * * * *
LABELING
Sec. 324. (a). In General.--(1) * * *
(2) * * *
(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).
* * * * * * *
(5)(A) For covered products described in subsections (u)
through (ee) of section 325, after a test procedure has been
prescribed under section 323, the Secretary or the Commission,
as appropriate, may prescribe, by rule, under this section
labeling requirements for the products.
(B) In the case of products to which TP-1 standards under
section 325(y) apply, labeling requirements shall be based on
the ``Standard for the Labeling of Distribution Transformer
Efficiency'' prescribed by the National Electrical
Manufacturers Association (NEMA TP-3) as in effect on the date
of enactment of this paragraph.
(C) In the case of dehumidifiers covered under section
325(dd), the Commission shall not require an ``Energy Guide''
label.
* * * * * * *
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.
ENERGY CONSERVATION STANDARDS
Sec. 325. (a) Purposes. * * *
(f) Standards for Furnaces.--
(3)(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.
* * * * * * *
(g) Standards for Dishwashers; Clothes Washers; Clothes
Dryers, Fluorescent Lamp Ballasts.--
* * * * * * *
(6) The standards described in paragraph (5) do not
apply to (A) a ballast which is designed for dimming or
for use in ambient temperatures of 0<< F or less, or
(B) a ballast which has a power factor of less than
0.90 and is designed and labeled for use only in
residential building applications.
* * * * * * *
(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 Ballast
Application for operation of-- input nominal efficacy
voltage lamp watts factor
------------------------------------------------------------------------
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 subparagraphs (A) and
(B) do not apply to-
(i) a ballast that is designed for dimming to
50 percent or less of the maximum output of the
ballast;
(ii) a ballast that is designed for use with
2 F96T12HO lamps at ambient temperatures of 20F
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.
* * * * * * *
(o) Criteria for Prescribing New or Amended Standards.--
* * * * * * *
(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.
* * * * * * *
(p) Procedure for Prescribing New or Amended Standards.--
[Any] Except as provided in subsection (u), any new or amended
energy conservation standard shall be prescribed in accordance
with the following procedure:
* * * * * * *
(u) Special Rulemaking Procedures.--(1) Notwithstanding any
other provision of law, the Secretary may publish a notice of
direct final rulemaking based on an energy conservation
standard recommended by an interested person, if--
(A) in response to an advance notice of proposed
rulemaking under paragraph (p), the interested person
(including a representative of a manufacturer of a
covered product, a conservation advocate, or consumer)
submits a joint comment recommending an energy
conservation standard; and
(B) the Secretary determines that the energy
conservation standard complies with the substantive
provisions of this Act that apply to the type (or
class) of covered products to which the rule may apply.
(2) The Secretary shall publish a notice of direct final
rulemaking under paragraph (1) with a notice of proposed
rulemaking incorporating by reference the regulatory language
of the direct final rule that provides for an effective date
not earlier than 90 days after the date of publication.
(3) The Secretary may withdraw a direct final rule
published under paragraph (2) before the effective date of the
rule if an interested person files a significant adverse
comment in response to the related notice of proposed
rulemaking.
(v) Battery Charger and External Power Supply Electric
Energy Consumption.--(1)(A) Not later than 18 months after the
date of enactment of this subsection, the Secretary shall,
after providing notice and an opportunity for comment,
prescribe, by rule, definitions and test procedures for the
power use of battery chargers and external power supplies.
(B) In establishing the test procedures under
subparagraph (A), the Secretary shall--
(i) consider existing definitions and test
procedures used for measuring energy
consumption in standby mode and other modes;
and
(ii) assess the current and projected future
market for battery chargers and external power
supplies.
(C) The assessment under subparagraph (B)(ii) shall
include--
(i) estimates of the significance of
potential energy savings from technical
improvements to battery chargers and external
power supplies; and
(ii) suggested product classes for energy
conservation standards.
(D) Not later than 18 months after the date of
enactment of this subsection, the Secretary shall hold
a scoping workshop to discuss and receive comments on
plans for developing energy conservation standards for
energy use for battery chargers and external power
supplies.
(E)(i) Not later than 3 years after the date of
enactment of this subsection, the Secretary shall issue
a final rule that determines whether energy
conservation standards shall be issued for battery
chargers and external power supplies or classes of
battery chargers and external power supplies.
(ii) For each product class, any energy conservation
standards issued under clause (i) shall be set at the
lowest level of energy use that--
(I) meets the criteria and procedures of
subsections (o), (p), (q), (r), (s), and (t);
and
(II) would result in significant overall
annual energy savings, considering standby mode
and other operating modes.
(2) In determining under section 323 whether test
procedures and energy conservation standards under this section
should be revised with respect to covered products that are
major sources of standby mode energy consumption, the Secretary
shall consider whether to incorporate standby mode into the
test procedures and energy conservation standards, taking into
account standby mode power consumption compared to overall
product energy consumption.
(3) The Secretary shall not propose an energy conservation
standard under this section, unless the Secretary has issued
applicable test procedures for each product under section 323.
(4) Any energy conservation standard issued under this
subsection shall be applicable to products manufactured or
imported beginning on the date that is 3 years after the date
of issuance.
(5) The Secretary and the Administrator shall collaborate
and develop programs (including programs under section 324A and
other voluntary industry agreements or codes of conduct) that
are designed to reduce standby mode energy use.
(w) Suspended Ceiling Fans and Refrigerated Beverage
Vending Machines.--(1) Not later than 4 years after the date of
enactment of this subsection, the Secretary shall prescribe, by
rule, energy conservation standards for--
(A) suspended ceiling fans; and
(B) refrigerated bottled or canned beverage vending
machines.
(2) In establishing energy conservation standards under
this subsection, the Secretary shall use the criteria and
procedures prescribed under subsections (o) and (p).
(3) Any energy conservation standard prescribed under this
subsection shall apply to products manufactured 3 years after
the date of publication of a final rule establishing the energy
conservation standard.
(x) Illuminated Exit Signs.--An illuminated exit sign
manufactured on or after January 1, 2006, shall meet the
version 2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
(y) Torchieres.--A torchiere manufactured on or after
January 1, 2006--
(1) shall consume not more than 190 watts of power;
and
(2) shall not be capable of operating with lamps that
total more than 190 watts.
(z) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of a low voltage dry-type distribution transformer
manufactured on or after January 1, 2006, shall be the Class I
Efficiency Levels for distribution transformers specified in
table 4-2 of the ``Guide for Determining Energy Efficiency for
Distribution Transformers'' published by the National
Electrical Manufacturers Association (NEMA TP-1-2002).
(aa) Traffic Signal Modules and Pedestrian Modules.--Any
traffic signal module or pedestrian module manufactured on or
after January 1, 2006, shall--
(1) meet the performance requirements used under the
Energy Star program of the Environmental Protection
Agency for traffic signals, as in effect on the date of
enactment of this subsection; and
(2) be installed with compatible, electrically
connected signal control interface devices and conflict
monitoring systems.
(bb) Unit Heaters.--A unit heater manufactured on or after
the date that is 3 years after the date of enactment of this
subsection shall--
(1) be equipped with an intermittent ignition device;
and
(2) have power venting or an automatic flue damper.
(cc) Medium Base Compact Fluorescent Lamps.--(1) A bare
lamp and covered lamp (no reflector) medium base compact
fluorescent lamp manufactured on or after January 1, 2006,
shall meet the following requirements prescribed by the August
9, 2001, version of the Energy Star Program Requirements for
Compact Fluorescent Lamps, Energy Star Eligibility Criteria,
Energy-Efficiency Specification issued by the Environmental
Protection Agency and Department of Energy:
(A) Minimum initial efficacy.
(B) Lumen maintenance at 1000 hours.
(C) Lumen maintenance at 40 percent of rated life.
(D) Rapid cycle stress test.
E) Lamp life.
(2) The Secretary may, by rule, establish requirements for
color quality (CRI), power factor, operating frequency, and
maximum allowable start time based on the requirements
prescribed by the August 9, 2001, version of the Energy Star
Program Requirements for Compact Fluorescent Lamps.
(3) The Secretary may, by rule--
(A) revise the requirements established under
paragraph (2); or
(B) establish other requirements, after considering
energy savings, cost effectiveness, and consumer
satisfaction.
(dd) Dehumidifiers.--(1) Dehumidifiers manufactured on or
after October 1, 2007, shall have an Energy Factor that meets
or exceeds the following values:
------------------------------------------------------------------------
Minimum energy factor
Product capacity (pints/day) (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:
------------------------------------------------------------------------
Minimum energy factor
Product capacity (pints/day) (liters/kWh)
------------------------------------------------------------------------
25.00 or less.................................. 1.20
25.01-35.00.................................... 1.30
35.01-45.00.................................... 1.40
45.01-54.00.................................... 1.50
54.01-74.99.................................... 1.60
75.00 or more.................................. 2.5.
------------------------------------------------------------------------
(ee) Commercial Prerinse Spray Valves.--Commercial prerinse
spray valves manufactured on or after January 1, 2006, shall
have a flow rate of not more than 1.6 gallons per minute.
(ff) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp
ballasts shall not be manufactured or imported after January 1,
2008.
(gg) Application Date.--Section 327 applies--
(1) to products for which energy conservation
standards are to be established under subsection (l),
(u), (v), or (w) beginning on the date on which a final
rule is issued by the Secretary, except that any State
or local standard prescribed or enacted for the product
before the date on which the final rule is issued shall
not be preempted until the energy conservation standard
established under subsection (l), (u), (v), or (w) for
the product takes effect; and
(2) to products for which energy conservation
standards are established under subsections (x) through
(ff) on the date of enactment of those subsections,
except that any State or local standard prescribed or
enacted before the date of enactment of those
subsections shall not be preempted until the energy
conservation standards established under subsections
(x) through (ff) take effect.
* * * * * * *
EFFECT ON OTHER LAW
Sec. 327(a). * * *
(b). General Rule of Preemption for Energy Conservation
Standards Before Federal Standard Becomes Effective for a
Product.--
* * * * * * *
(5) is a regulation concerning the water use of
lavatory or kitchen faucets adopted by the State of
Rhode Island prior to the date of the enactment of the
Energy Policy Act of 1992; [or]
(6) is a regulation (or portion thereof) concerning
the water efficiency or water use of gravity tank-type
low consumption water closets for installation in
public places, except that such a regulation shall be
effective only until January 1, 1997[.]; or
(7)(A) is a regulation concerning standards for
commercial prerinse spray valves adopted by the
California Energy Commission before January 1, 2005; or
(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations with changes in American Society for
Testing and Materials Standard F2324;
(8)(A) is a regulation concerning standards for
pedestrian modules adopted by the California Energy
Commission before January 1, 2005; or
(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations to changes in the Institute for
Transportation Engineers standards, entitled
``Performance Specification: Pedestrian Traffic Control
Signal Indications''.
* * * * * * *
ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW
Sec. 336. (a). * * *
(b)(2) Upon the filing of the petition referred to in
paragraph (1), the court shall have jurisdiction to review the
rule in accordance with chapter 7 of title 5, United States
Code, and to grant appropriate relief as provided in [such
chapter] that chapter, except, notwithstanding section
706(2)(D) of title 5, United States Code, no direct final rule
prescribed or withdrawn under section 325(u) may be held
unlawful or set aside because of the failure of the Secretary
to observe a procedure required by law other than the
procedures required under section 325(u). No rule under section
323, 324, or 325 may be affirmed unless supported by
substantial evidence.
* * * * * * *
CONSUMER EDUCATION
Sec. 337 (a). * * *
(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; and
(C) identifying financing options for energy
efficiency upgrades.
(2) The Secretary and the Administrator of the Small
Business Administration shall make program information
available directly to small businesses and through otherFederal
agencies, including the Federal Emergency Management Agency and the
Department of Agriculture.
* * * * * * *
PART C--CERTAIN INDUSTRIAL EQUIPMENT DEFINITIONS
Sec. 340. For purposes of this part--
(1) The term ``covered equipment'' means one of the
following types of industrial equipment:
(A) Electric motors and pumps.
(B) Small commercial package air conditioning
and heating equipment.
(C) Large commercial package air conditioning
and heating equipment.
(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.
[(D)] (H) Packaged terminal air-conditioners
and packaged terminal heat pumps.
[(E)] (I) Warm air furnaces and packaged
boilers.
[(F)] (J) Storage water heaters,
instantaneous water heaters, and unfired hot
water storage tanks.
[(G)] (K) Any other type of industrial
equipment which the Secretary classifies as
covered equipment under section 341(b).
* * * * * * *
(2)(B) The types of equipment referred to in this
subparagraph (in addition to electric motors and pumps,
[small and large commercial package air conditioning
and heating equipment] commercial package air
conditioning and heating equipment, commercial
refrigerators, freezers, and refrigerator-freezers,
automatic commercial ice makers, commercial clothes
washers, packaged terminal air-conditioners, packaged
terminal heat pumps, warm air furnaces, packaged
boilers, storage water heaters, instantaneous water
heaters, and unfired hot water storage tanks) are as
follows:
* * * * * * *
[(8) The term ``small 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
which are rated below 135,000 Btu per hour (cooling
capacity).]
[(9) The term ``large 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
which are rated at or above 135,000 Btu per hour and
below 240,000 Btu per hour (cooling capacity).]
(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.
* * * * * * *
(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.
* * * * * * *
Sec. 342. (a) [Small and Large] Small, Large, and Very
Large Commercial Package Air Conditioning and Heating
Equipment, Packaged Terminal Air Conditioners and Heat Pumps,
Warm-Air Furnaces, Packaged Boilers, Storage Water Heaters,
Instantaneous Water Heaters, and Unfired Hot Water Storage
Tanks.--
(1) Each small commercial package air conditioning
and heating equipment manufactured on or after January
1, 1994 but before January 1, 2010, shall meet the
following standard levels:
* * * * * * *
(2) Each large commercial package air conditioning
and heating equipment manufactured on or after January
1, 1995 but before January 1, 2010, shall meet the
following standard levels:
* * * * * * *
(6)(A)(i) If ASHRAE/IES Standard 90.1, as in effect
on [the date of enactment of the Energy Policy Act of
1992] January 1, 2010, is amended with respect to any
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, or if ASHRAE/
IES Standard 90.1, as in effect on October 24, 1992, is
amended with respect to any, packaged terminal air
conditioners, packaged terminal heat pumps, warm-air
furnaces, packaged boilers, storage water heaters,
instantaneous water heaters, or unfired hot water
storage tanks, the Secretary shall establish an amended
uniform national standard for that product at the
minimum level for each effective date specified in the
amended ASHRAE/IES Standard 90.1, unless the Secretary
determines, by rule published in the Federal Register
and supported by clear and convincing evidence, that
adoption of a uniform national standard more stringent
than such amended ASHRAE/IES Standard 90.1 for such
product would result in significant additional
conservation of energy and is technologically feasible
and economically justified.
(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.
* * * * * * *
(C)(i) * * *
(ii) with respect to large commercial package air
conditioning and heating equipment and very large
commercial package air conditioning and heating
equipment, on or after a date which is three years
after the effective date of the applicable minimum
energy efficiency requirement in the amended ASHRAE/IES
standard referred to in subparagraph (A);
* * * * * * *
(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).
* * * * * * *
(b) * * *
(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
(A) The term ``AV'' means the adjusted volume (ft3)
(defined as 1.63 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 energy consumption
(in kilowatt hours per day) that does not exceed the following:
Refrigerators with solid doors..... 0.10 V + 2.04
Refrigerators with transparent 0.12 V + 3.34
doors.
Freezers with solid doors.......... 0.40 V + 1.38
Freezers with transparent doors.... 0.75 V + 4.10
Refrigerators/freezers with solid 0.27 AV-0.71 or 0.70.
doors the greater of.
(3) Each commercial refrigerator with a self-contained
condensing unit designed for pull-down temperature applications
and transparent doors manufactured on or after January 1, 2010,
shall have a daily energy consumption (in kilowatt hours per
day) of not more than 0.126 V + 3.51.
(4)(A) Not later than January 1, 2009, the Secretary shall
issue, by rule, standard levels for ice-cream freezers, self-
contained commercial refrigerators, freezers, and refrigerator-
freezers without doors, and remote condensing commercial
refrigerators, freezers, and refrigerator-freezers, with the
standard levels effective for equipment manufactured on or
after January 1, 2012.
(B) The Secretary may issue, by rule, standard levels for
other types of commercial refrigerators, freezers, and
refrigerator-freezers not covered by paragraph (2)(A) with the
standard levels effective for equipment manufactured 3 or more
years after the date on which the final rule is published.
(5)(A) Not later than January 1, 2013, the Secretary shall
issue a final rule to determine whether the standards
established under this subsection should be amended.
(B) Not later than 3 years after the effective date of any
amended standards under subparagraph (A) or the publication of
a final rule determining that the standards should not be
amended, the Secretary shall issue a final rule to determine
whether the standards established under this subsection or the
amended standards, as applicable, should be amended.
(C) If the Secretary issues a final rule under subparagraph
(A) or (B) establishing amended standards, the final rule shall
provide that the amended standards apply to products
manufactured on or after the date that is--
(i) 3 years after the date on which the final amended
standard is published; or
(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final rule is published.
(d) 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 Harvest rate (lbs Maximum energy use water use (gal/100
cooling 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 (but not Air........ <1000................ 8.85-0.0038H......... Not Applicable.
remote compressor). 1000................. 5.10.................
Remote Condensing and Remote Air........ <934................. 8.85-0.0038H......... Not Applicable
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), notlater 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 3.
(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.
* * * * * * *
TEST PROCEDURES
Sec. 343. (a) * * *
(4)(A) With respect to small commercial package air
conditioning and heating equipment, large commercial
package air conditioning and heating equipment very
large commercial package air conditioning and heating
equipment, packaged terminal air conditioners, packaged
terminal heat pumps, warm-air furnaces, packaged
boilers, storage water heaters, instantaneous water
heaters, and unfired hot water storage tanks to which
standards are applicable under section 342, the test
procedures shall be those generally accepted industry
testing procedures or rating procedures developed or
recognized by the Air-Conditioning and Refrigeration
Institute or by the American Society of Heating,
Refrigerating and Air Conditioning Engineers, as
referenced in ASHRAE/IES Standard 90.1 and in effect on
June 30, 1992.
(B) If such an industry test procedure or rating
procedure for small commercial package air conditioning
and heating equipment, large commercial package air
conditioning and heating equipment very large
commercial package air conditioning and heating
equipment, packaged terminal air conditioners, packaged
terminal heat pumps, warm-air furnaces, packaged
boilers, storage water heaters, instantaneous water
heaters, or unfired hot water storage tanks is amended,
the Secretary shall amend the test procedure for the
product as necessary to be consistent with the amended
industry test procedure or rating procedure 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 described in paragraphs (2) and (3)
of this subsection.
* * * * * * *
(6)(A)(i) In the case of commercial refrigerators,
freezers, and refrigerator-freezers, the test
procedures shall be--
(I) the test procedures determined by the
Secretary to be generally accepted industry
testing procedures; or
(II) rating procedures developed or
recognized by the ASHRAE or by the American
National Standards Institute.
(ii) In the case of self-contained refrigerators,
freezers, and refrigerator-freezers to which standards
are applicable under paragraphs (2) and (3) of section
342(c), the initial test procedures shall be the ASHRAE
117 test procedure that is in effect on January 1,
2005.
(B)(i) In the case of commercial
refrigerators, freezers, and refrigerators-
freezers with doors covered by the standards
adopted in February 2002, by the California
Energy Commission, the rating temperatures
shall be the integrated average temperature of
38 degrees F ( 2 degrees F) for refrigerator
compartments and 0 degrees F ( 2 degrees F) for
freezer compartments.
(C) The Secretary shall issue a rule in
accordance with paragraphs (2) and (3) to
establish the appropriate rating temperatures
for the other products for which standards will
be established under subsection 342(c)(4).
(D) In establishing the appropriate test
temperatures under this subparagraph, the
Secretary shall follow the procedures and meet
the requirements under section 323(e).
(E)(i) Not later than 180 days after the
publication of the new ASHRAE 117 test
procedure, if the ASHRAE 117 test procedure for
commercial refrigerators, freezers, and
refrigerator-freezers is amended, the Secretary
shall, by rule, amend the test procedure for
the product as necessary to ensure that the
test procedure is consistent with the amended
ASHRAE 117 test procedure, unless the Secretary
makes a determination, by rule, and supported
by clear and convincing evidence, that to do so
would not meet the requirements for test
procedures under paragraphs (2) and (3).
(ii) If the Secretary determines that 180
days is an insufficient period during which to
review and adopt the amended test procedure or
rating procedure under clause (i), the
Secretary shall publish a notice in the Federal
Register stating the intent of the Secretary to
wait not longer than 1 additional year before
putting into effect an amended test procedure
or rating procedure.
(F)(i) If a test procedure other than the
ASHRAE 117 test procedure is approved by the
American National Standards Institute, the
Secretary shall, by rule--
(I) review the relative strengths and
weaknesses of the new test procedure
relative to the ASHRAE 117 test
procedure; and
(II) based on that review, adopt 1
new test procedure for use in the
standards program.
(ii) If a new test procedure is adopted under
clause (i)--
(I) section 323(e) shall apply; and
(II) subparagraph (B) shall apply to
the adopted test procedure.
(7)(A) In the case of automatic commercial ice
makers, the test procedures shall be the test
procedures specified in Air-Conditioning and
Refrigeration Institute Standard 810-2003, as in effect
on January 1, 2005.
(B)(i) If Air-Conditioning and Refrigeration
Institute Standard 810-2003 is amended, the Secretary
shall amend the test procedures established in
subparagraph (A) as necessary to be consistent with the
amended Air-Conditioning and Refrigeration Institute
Standard, unless the Secretary determines, by rule,
published in the Federal Register and supported by
clear and convincing evidence, that to do so would not
meet the requirements for test procedures under
paragraphs (2) and (3).
(ii) If the Secretary issues a rule under clause (i)
containing a determination described in clause (ii),
the rule may establish an amended test procedure for
the product that meets the requirements of paragraphs
(2) and (3).
(C) The Secretary shall comply with section 323(e) in
establishing any amended test procedure under this
paragraph.
(8) With respect to commercial clothes washers, the
test procedures shall be the same as the test
procedures established by the Secretary for residential
clothes washers under section 325(g).
* * * * * * *
(d)(1) Effective 180 days (or, in the case of small
commercial package air conditioning and heating equipment,
large commercial package air conditioning and heating
equipment, very large commercial package air conditioning and
heating equipment, commercial refrigerators, freezers, and
refrigerator-freezers, automatic commercial ice makers,
commercial clothes washers, packaged terminal air conditioners,
packaged terminal heat pumps, warm-air furnaces, packaged
boilers, storage water heaters, instantaneous water heaters,
and unfired hot water storage tanks, 360 days) after a test
procedure rule applicable to any covered equipment is
prescribed under this section, no manufacturer, distributor,
retailer, or private labeler may make any representation--
* * * * * * *
LABELING REQUIREMENTS
Sec. 344. (a) * * *
(e) Subject to subsection (h), not later than 12 months
after the Secretary establishes test procedures for small
commercial package air conditioning and heating equipment,
large commercial package air conditioning and heating
equipment, very large commercial package air conditioning and
heating equipment, commercial refrigerators, freezers, and
refrigerator-freezers, automatic commercial ice makers,
commercial clothes washers, packaged terminal air conditioners,
packaged terminal heat pumps, warm-air furnaces, packaged
boilers, storage water heaters, instantaneous water heaters,
and unfired hot water storage tanks under section 343, the
Secretary shall prescribe labeling rules under this section for
such equipment. Such rules shall provide that the labeling of
any small commercial package air conditioning and heating
equipment, large commercial package air conditioning and
heating equipment, very large commercial package air
conditioning and heating equipment, commercial refrigerators,
freezers, and refrigerator-freezers, automatic commercial ice
makers, commercial clothes washers, packaged terminal air
conditioner, packaged terminal heat pump, warm-air furnace,
packaged boiler, storage water heater, instantaneous water
heater, and unfired hot water storage tank manufactured after
the 12-month period beginning on the date the Secretary
prescribes such rules shall--
(1) indicate the energy efficiency of the equipment
on the permanent nameplate attached to such equipment
or other nearby permanent marking;
(2) prominently display the energy efficiency of the
equipment in new equipment catalogs used by the
manufacturer to advertise the equipment; and
(3) include such other markings as the Secretary
determines necessary solely to facilitate enforcement
of the standards established for such equipment under
section 342.
* * * * * * *
ADMINISTRATION, ENFORCEMENT, PENALTIES, AND PREEMPTION
Sec. 345(a) * * *
(7) section 327(b)(4) shall be applied as if electric
motors were fluorescent lamp ballasts and as if
paragraph (5) of section 325(g) were section 342; [and]
(8) notwithstanding any other provision of law, a
regulation or other requirement adopted by a State or
subdivision of a State contained in a State or local
building code for new construction concerning the
energy efficiency or energy use of an electric motor
covered under this part is not superseded by the
standards for such electric motor established or
prescribed under section 342(b) if such regulation or
requirement is identical to the standards established
or prescribed under such section[.]; and
(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.
* * * * * * *
(b)(1) The provisions of section 325(u), section 326(a),
(b), and (d), section 327(a), and sections 328 through 336
shall apply with respect to the equipment specified in
subparagraphs (B), (C), (D), (E), and (F) of section 340(1) to
the same extent and in the same manner as they apply in [part
B] part A. In applying such provisions for the purposes of such
equipment, paragraphs (1), (2), (3), and (4) of subsection (a)
shall apply.
* * * * * * *
(d)(1) Except as provided in paragraphs (2) and (3),
section 327 shall apply with respect to very large commercial
package air conditioning and heating equipment to the same
extent and in the same manner as section 327 applies under part
A on the date of enactment of this subsection.
(2) Any State or local standard issued before the date of
enactment of this subsection shall not be preempted until the
standards established under section 342(a)(9) take effect on
January 1, 2010.
(e)(1)(A) Subsections (a), (b), and (d) of section 326,
subsections (m) through (s) of section 325, and sections 328
through 336 shall apply with respect to commercial
refrigerators, freezers, and refrigerator-freezers to the same
extent and in the same manner as those provisions apply under
part A.
(B) In applying those provisions to commercial
refrigerators, freezers, and refrigerator-freezers, paragraphs
(1), (2), (3), and (4) of subsection (a) shall apply.
(2)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are
established under paragraphs (2) and (3) of section 342(c) to
the same extent and in the same manner as those provisions
apply under part A on the date of enactment of this subsection,
except that any State or local standard issued before the date
of enactment of this subsection shall not be preempted until
the standards established under paragraphs (2) and (3) of
section 342(c) take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(3)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are
established under section 342(c)(4) to the same extent and in
the same manner as the provisions apply under part A on the
date of publication of the final rule by the Secretary, except
that any State or local standard issued before the date of
publication of the final rule by the Secretary shall not be
preempted until the standards take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(4)(A) If the Secretary does not issue a final rule for a
specific type of commercial refrigerator, freezer, or
refrigerator-freezer within the time frame specified in section
342(c)(5), subsections (b) and (c) of section 327 shall not
apply to that specific type of refrigerator, freezer, or
refrigerator-freezer for the period beginning on the date that
is 2 years after the scheduled date for a final rule and ending
on the date on which the Secretary publishes a final rule
covering the specific type of refrigerator, freezer, or
refrigerator-freezer.
(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the
final rule takes effect.
(5)(A) In the case of any commercial refrigerator, freezer,
or refrigerator-freezer to which standards are applicable under
paragraphs (2) and (3) of section 342(c), the Secretary shall
require manufacturers to certify, through an independent,
nationally recognized testing or certification program, that
the commercial refrigerator, freezer, or refrigerator-freezer
meets the applicable standard.
(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 independent testing
and certification programs.
(C) As part of certification, information on equipment
energy use and interior volume shall be made available to the
Secretary.
(f)(1)(A)(i) Except as provided in clause (ii), section 327
shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(1) to the
same extent and in the same manner as the section applies under
part A on the date of enactment of this subsection.
(ii) Any State standard issued before the date of enactment
of this subsection shall not be preempted until the standards
established under section 342(d)(1) take effect.
(B) In applying section 327 to the equipment under
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
(2)(A)(i) Except as provided in clause (ii), section 327
shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(2) to the
same extent and in the same manner as the section applies under
part A on the date of publication of the final rule by the
Secretary.
(ii) Any State standard issued before the date of
publication of the final rule by the Secretary shall not be
preempted until the standards established under section
342(d)(2) take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(3)(A) If the Secretary does not issue a final rule for a
specific type of automatic commercial ice maker within the time
frame specified in subsection 342(d), subsections (b) and (c)
of section 327 shall no longer apply to the specific type of
automatic commercial ice maker for the period beginning on the
day after the scheduled date for a final rule and ending on the
date on which the Secretary publishes a final rule covering the
specific type of automatic commercial ice maker.
(B) Any State standard issued before the publication of the
final rule shall not be preempted until the standards
established in the final rule take effect.
(4)(A) The Secretary shall monitor whether manufacturers
are reducing harvest rates below tested values for the purpose
of bringing non-complying equipment into compliance.
(B) If the Secretary finds that there has been a
substantial amount of manipulation with respect to harvest
rates under subparagraph (A), the Secretary shall take steps to
minimize the manipulation, such as requiring harvest rates to
be within 5 percent of tested values.
(g)(1)(A) If the Secretary does not issue a final rule for
commercial clothes washers within the timeframe specified in
section 342(e)(2), subsections (b) and (c) of section 327 shall
not apply to commercial clothes washers for the period
beginning on the day after the scheduled date for a final rule
and ending on the date on which the Secretary publishes a final
rule covering commercial clothes washers.
(B) Any State or local standard issued before the date on
which the Secretary publishes a final rule shall not be
preempted until the standards established under section
342(e)(2) take effect.
(2) The Secretary shall undertake an educational program to
inform owners of laundromats, multifamily housing, and other
sites where commercial clothes washers are located about the
new standard, including impacts on washer purchase costs and
options for recovering those costs through coin collection.
* * * * * * *
STATE ENERGY CONSERVATION PLANS
Sec. 362 (a) * * *
(g)(1) The Secretary shall, at least once every 3 years,
invite the Governor of each State to review and, if necessary,
revise the energy conservation plan of the State submitted
under subsection (b) or (e).
(2) A review conducted under paragraph (1) should--
(A) consider the energy conservation plans of other
States within the region; and
(B) identify opportunities and actions carried out in
pursuit of common energy conservation goals.
* * * * * * *
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 October 1, 1991, shall contain a goal, consisting of an
improvement of 10 percent or more in the efficiency of use of
energy in the State concerned in the calendar year 2000 as
compared to the calendar year 1990, and may contain interim
goals.]
Sec. 364. Each State energy conservation plan with respect
to which assistance is made available under this part on or
after the date of enactment of the Energy Policy Act of 2005--
(1) shall contain a goal, consisting of an
improvement of 25 percent or more in the efficiency of
use of energy in the State concerned in calendar year
2012 as compared to calendar year 1992; and
(2) may contain interim goals.
* * * * * * *
GENERAL PROVISIONS
Sec. 365 (a). * * *
(e) For the purpose of carrying out this part, there are
authorized to be appropriated for [fiscal years 1999 through
2003 such sums as may be necessary] $100,000,000 for each of
fiscal years 2006 and 2007 and $125,000,000 for fiscal year
2008.
* * * * * * *
PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS
SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL VEHICLES.
(a) Department of Energy Program.--
* * * * * * *
(3) * * *
[(E) Dual fueled vehicles acquired pursuant
to this section shall be operated on
alternative fuels unless the Secretary
determines that operation on such alternative
fuels is not feasible.]
(E)(i) Dual fueled vehicles acquired pursuant
to this section shall be operated on
alternative fuels unless the Secretary
determines that an agency qualifies for a
waiver of the requirements of this section for
vehicles operated by the agency in a particular
geographic area in which--
(I) the alternative fuel otherwise
required to be used in the vehicle is
not reasonably available to retail
purchasers of the fuel, as certified to
the Secretary by the head of the
agency; or
(II) the cost of the alternative fuel
otherwise required to be used in the
vehicle is unreasonably more expensive
compared to gasoline, as certified to
the Secretary by the head of the
agency.
(ii) The Secretary shall monitor compliance
with this subparagraph by all fleets receiving
a waiver.
(iii) The Secretary shall report annually to
Congress on the extent to which the
requirements of this subparagraph are being
achieved, including information on annual
reductions achieved from the use of petroleum-
based fuels and the problems, if any,
encountered in acquiring alternative fuels.
---------- --
--------
UNITED STATES HOUSING ACT OF 1937--ACT OF SEPTEMBER 1, 1937, CHAPTER
896, AS AMENDED (42 U.S.C. 1437 ET SEQ.)
* * * * * * *
Sec. 9. * * *
(d) * * *
(1) * * *
(I) capital expenditures to improve the
security and safety of residents[; and];
(J) homeownership activities, including
programs under section 32[.];
(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.
* * * * * * *
(e) * * *
(2) * * *
(C) Treatment of savings.--[The treatment]
(i) In general._The treatment of utility and
waste management costs under the formula shall
provide that a public housing agency shall
receive the full financial benefit from any
reduction in the cost of utilities or waste
management resulting from any contract with a
third party to undertake energy conservation
improvements in one or more of its public
housing projects.
(ii) Third party contracts.--Contracts
described in clause (i) may include contracts
for--
(I) equipment conversions to less
costly utility sources;
(II) projects with resident-paid
utilities; and (III) adjustments to
frozen base year consumption, including
systems repaired to meet applicable
building and safety codes and
adjustments for occupancy rates
increased by rehabilitation.
(iii) Term of contract.--The total term of a
contract described in clause (i) shall not
exceed 20 years to allow longer payback periods
for retrofits, including--
(I) windows;
(II) heating system replacements;
(III) wall insulation;
(IV) site-based generation; and
(V) advanced energy savings
technologies, including renewable
energy generation and other such
retrofits.
---------- --
--------
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT--PUBLIC LAW 101-625,
AS AMENDED (42 U.S.C. 12701 ET SEQ.)
Sec. 109. (a) * * *
(1) In general._The Secretary of Housing and Urban
Development and the Secretary of Agriculture shall, not
later than [1 year after the date of the enactment of
the Energy Policy Act of 1992] September 30, 2006,
jointly establish, by rule, energy efficiency standards
for--
(A) new construction of public and assisted
housing and single family and multifamily
residential housing (other than manufactured
homes) subject to mortgages insured under the
National Housing Act[; and];
(B) new construction of single family housing
(other than manufactured homes) subject to
mortgages insured, guaranteed, or made by the
Secretary of Agriculture under title V of the
Housing Act of 1949[.]; and
(C) rehabilitation and new construction of
public and assisted housing funded by HOPE VI
revitalization grants, established under
section 24 of the United States Housing Act of
1937 (42 U.S.C. 1437v), where such standards
are determined to be cost effective by the
Secretary of Housing and Urban Development.
(2) Contents.--Such standards shall meet or exceed
the requirements of the Council of American Building
Officials Model Energy Code, 1992 (hereafter in this
section referred to as ``CABO Model Energy Code,
1992''), or, in the case of multifamily high rises, the
requirements of the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers Standard
90.1-1989 (hereafter in this section referred to as
``ASHRAE Standard 90.1-1989''), and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants, established under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code, and shall be
cost-effective with respect to construction and
operating costs on a life-cycle cost basis. In
developing such standards, the Secretaries shall
consult with an advisory task force composed of
homebuilders, national, State, and local housing
agencies (including public housing agencies), energy
agencies, building code organizations and agencies,
energy efficiency organizations, utility organizations,
low-income housing organizations, and other parties
designated by the Secretaries.
(b) Model Energy Code.--If the Secretaries have not,
[within 1 year after the date of the enactment of the Energy
Policy Act of 1992] by September 30, 2006, established energy
efficiency standards under subsection (a), all new construction
of housing specified in such subsection shall meet the
requirements of CABO Model Energy Code, 1992, or, in the case
of multifamily high rises, the requirements of ASHRAE Standard
90.1-1989), and, with respect to rehabilitation and new
construction of public and assisted housing funded by HOPE VI
revitalization grants, established under section 24 of the
United States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code.
(c) Revisions of Model Energy Code and the International
Energy Conservation Code._If the requirements of CABO Model
Energy Code, 1992, or, in the case of multifamily high rises,
ASHRAE Standard 90.1-1989 or, with respect to rehabilitation
and new construction of public and assisted housing funded by
HOPE VI revitalization grants, established under section 24 of
the United States Housing Act of 1937 (42 U.S.C. 1437v), the
2003 International Energy Conservation Code are revised at any
time, the Secretaries shall, not later than 1 year after such
revision, amend the standards established under subsection (a)
to meet or exceed the requirements of such revised code or
standard unless the Secretaries determine that compliance with
such revised code or standard would not result in a significant
increase in energy efficiency or would not be technologically
feasible or economically justified.
---------- --
--------
ENERGY POLICY ACT OF 1992--PUBLIC LAW 102-486, AS AMENDED (42 U.S.C.
13211 ET SEQ.)
* * * * * * *
SECTION 1. SHORT TITLE; TABLE OF CONTENTS
* * * * * * *
TITLE III--NATURAL GAS
* * * * * * *
[Sec. 306.--Agency Incentives Program.]
Sec. 306_Federal agency ethanol-blended gasoline and biodiesel
purchasing requirements.
* * * * * * *
TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS,
AND ALTERNATIVE FUELED PRIVATE VEHICLES
* * * * * * *
[Sec. 514. Authorization of Appropriations.]
Sec. 515. Authorization of appropriations.
Sec. 516. Termination of authority.
* * * * * * *
TITLE XXXVI--INDIAN ENERGY RESOURCES
[Sec. 2601. Definitions.
[Sec. 2602. Tribal Consultation.
[Sec. 2603. Promoting energy resource development and energy vertical
integration on Indian reservations.
[Sec. 2604. Indian energy resource regulation.
[Sec. 2605. Indian Energy Resource Commission.
[Sec. 2606. Tribal government energy assistance program.]
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.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
* * * * * * *
SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.
* * * * * * *
(c) Allocation of Incremental Costs.--The General Services
Administration and any other Federal agency that procures motor
vehicles for distribution to other Federal agencies [may] shall
allocate the incremental cost of alternative fueled vehicles
over the cost of comparable gasoline vehicles across the entire
fleet of motor vehicles distributed by such agency.
* * * * * * *
[SEC. 306. AGENCY INCENTIVES PROGRAM.
[(a) Reduction in Rates.--To encourage and promote use of
alternative fueled vehicles in Federal agencies, the
Administrator of General Services may offer a reduction in fees
charged to agencies for the lease of alternative fueled
vehicles below those fees charged for the lease of comparable
conventionally fueled motor vehicles.
[(b) Sunset Provision.--This section shall cease to be
effective 3 years after the date of the enactment of this Act.]
SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
(a) Ethanol-Blended Gasoline.--The head of each Federal
agency shall ensure that, in areas in which ethanol-blended
gasoline is reasonably available at a generally competitive
price, the Federal agency purchases ethanol-blended gasoline
containing at least 10 percent ethanol rather than nonethanol-
blended gasoline, for use in vehicles used by the agency that
use gasoline.
(b) Biodiesel.--
(1) Definition of biodiesel.--In this subsection, the
term ``biodiesel'' has the meaning given the term in
section 312(f).
(2) Requirement.--The head of each Federal agency
shall ensure that the Federal agency purchases, for use
in fueling fleet vehicles that use diesel fuel used by
the Federal agency at the location at which fleet
vehicles of the Federal agency are centrally fueled, in
areas in which the biodiesel-blended diesel fuel
described in subparagraphs (A) and (B) is available at
a generally competitive price--
(A) as of the date that is 5 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 20
percent biodiesel, rather than nonbiodiesel-
blended diesel fuel; and
(B) as of the date that is 10 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 20
percent biodiesel, rather than nonbiodiesel-
blended diesel fuel.
(3) Requirement of federal law.--The provisions of
this subsection shall not be considered a requirement
of Federal law for the purposes of section 312.
(c) Exemption.--This section does not apply to fuel used in
vehicles excluded from the definition of ``fleet'' by
subparagraphs (A) through (H) of section 301(9).
* * * * * * *
SEC. 310. REPORTS.
* * * * * * *
(b) Compliance Report.--
(1) In general.--Not later than [1 year after the
date of enactment of this subsection] February 15,
2006, and annually thereafter for the next 14 years,
the head of each Federal agency which is subject to
this Act and Executive Order No. 13031 shall prepare,
and submit to Congress, a report that--
* * * * * * *
TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS,
AND ALTERNATIVE FUELED PRIVATE VEHICLES
* * * * * * *
SEC. 508. CREDITS.
(a) In General.--[The Secretary]
(1) The Secretary shall allocate a credit to a fleet
or covered person that is required to acquire an
alternative fueled vehicle under this title, if that
fleet or person acquires an alternative fueled vehicle
in excess of the number that fleet or person is
required to acquire under this title or acquires an
alternative fueled vehicle before the date that fleet
or person is required to acquire an alternative fueled
vehicle under such title.
(2) Not later than January 31, 2007, the Secretary
shall--
(A) allocate credit in an amount to be
determined by the Secretary for--
(i) acquisition of--
(I) a light-duty hybrid
electric vehicle;
(II) a plug-in hybrid
electric vehicle;
(III) a fuel cell electric
vehicle;
(IV) a medium- or heavy-duty
dedicated vehicle; and (ii)
investment in qualified
alternative fuel infrastructure
or nonroad equipment, as
determined by the Secretary;
and
(B) allocate more than 1, but not to exceed 5
credits for investment in an emerging
technology relating to any vehicle described in
subparagraph (A) to encourage--
(i) a reduction in petroleum demand;
(ii) technological advancement; and
(iii) environmental safety.
* * * * * * *
[SEC. 514. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary
for carrying out this title $10,000,000 for each of the fiscal
years 1993 through 1997, and such sums as may be necessary for
fiscal years 1998 through 2000.]
SEC. 514. ALTERNATIVE COMPLIANCE.
(a) Application for Waiver.--Any covered person subject to
section 501 and any State subject to section 507(o) may
petition the Secretary for a waiver of the applicable
requirements of section 501 or 507(o).
(b) Grant of Waiver.--The Secretary shall grant a waiver of
the requirements of section 501 or 507(o) on a showing that the
fleet owned, operated, leased, or otherwise controlled by the
State or covered person--
(1) will achieve a reduction in the annual
consumption of petroleum fuels by the fleet equal to--
(A) the reduction in consumption of petroleum
that would result from 100 percent cumulative
compliance with the fuel use requirements of
section 501; or
(B) in the case of an entity covered under
section 507(o), a reduction equal to the annual
consumption by the State entity of alternative
fuels if all of the cumulative alternative fuel
vehicles of the State entity given credit under
section 508 were to use alternative fuel 100
percent of the time; and
(2) is in compliance with all applicable vehicle
emission standards established by the Administrator of
the Environmental Protection Agency under the Clean Air
Act (42 U.S.C. 7401 et seq.).
(c) Revocation of Waiver.--The Secretary shall revoke any
waiver granted under this section if the State or covered
person fails to comply with subsection (b).
* * * * * * *
SEC. 516. TERMINATION OF AUTHORITY.
The authority provided by sections 501, 507, and 508
terminates the earlier of--
(1) September 30, 2015; or
(2) the date, the Secretary has established, by rule,
a replacement program that achieves the goals of those
sections.
* * * * * * *
SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--
(1) For electric energy generated and sold by a
qualified renewable energy 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.
(2) The amount of such payment made to any such owner
or operator shall be as determined under subsection
(e).
(3) 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 toreceive such payment [and which satisfies
such other requirements as the Secretary deems necessary.]
(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,
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). [Such
application shall be in such form, and shall be
submitted at such time, as the Secretary shall
establish.]
(b) Qualified Renewable Energy Facility.--For purposes of
this section, a qualified renewable energy facility is a
facility which is owned by [a State or any political
subdivision of a State (or an agency, authority, or
instrumentality of a State or a political subdivision), by any
corporation or association which is wholly owned, directly or
indirectly, by one or more of the foregoing, or by a nonprofit
electrical cooperative] a not-for-profit electric cooperative,
a public utility described in section 115 of the Internal
Revenue Code of 1986, a State, Commonwealth, territory, or
possession of the United States, or the District of Columbia,
or a political subdivision thereof, or an Indian tribal
government or subdivision thereof, and which generates electric
energy for sale in, or affecting, interstate commerce using
solar, wind, biomass, landfill gas or geothermal energy, except
that--
(1) the burning of municipal solid waste shall not be
treated as using biomass energy; and
(2) geothermal energy shall not include energy
produced from a dry steam geothermal reservoir which
has--
(A) no mobile liquid in its natural state;
(B) steam quality of 95 percent water; and
(C) an enthalpy for the total produced fluid
greater than or equal to 1200 Btu/lb (British
thermal units per pound).
(c) Eligibility Window.--Payments may be made under this
section only for electricity generated from a qualified
renewable energy facility first used [during the 10-fiscal year
period beginning with the first full fiscal year occurring
after the enactment of this section] before October 1, 2016.
(d) Payment Period.--A qualified renewable energy facility
may receive payments under this section for a 10-fiscal year
period. Such period shall begin with the fiscal year in which
electricity generated from the facility is first eligible for
such payments, or in which the Secretary determines that all
necessary Federal and State authorizations have been obtained
to begin construction of the facility.
(e) Amount of Payment.--
(1) In general.--Incentive payments made by the
Secretary under this section to the owner or operator
of any qualified renewable energy facility shall be
based on the number of kilowatt hours of electricity
generated by the facility through the use of solar,
wind, biomass, landfill gas or geothermal energy during
the payment period referred to in subsection (d). For
any facility, the amount of such payment shall be 1.5
cents per kilowatt hour, adjusted as provided in
paragraph (2).
(2) Adjustments.--The amount of the payment made to any
person under this subsection as provided in paragraph
(1) shall be adjusted for inflation for each fiscal
year beginning after calendar year 1993 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 1993 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to
any facility after [the expiration of the 20-fiscal year period
beginning with the first full fiscal year occurring after the
enactment of this section,] September 30, 2026 and no payment
may be made under this section to any facility after a payment
has been made with respect to such facility for a 10-fiscal
year period.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for fiscal years 1993,
1994, and 1995 such sums as may be necessary to carry out the
purposes of this section.]
(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.
* * * * * * *
[TITLE XXVI--INDIAN ENERGY RESOURCES
[SEC. 2601. DEFINITIONS.
[For purposes of this title--
[(1) the term ``Indian tribe'' means any Indian
tribe, band, nation, or other organized group or
community, including any Alaska 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.), which is
recognized as eligible for the special programs and
services provided by the United States to Indians
because of their status as Indians; and
[(2) the term ``Indian reservation'' includes Indian
reservations; public domain Indian allotments; former
Indian reservations in Oklahoma; land held by
incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.);
and dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory thereof, and whether
within or without the limits of a State.
[SEC. 2602. TRIBAL CONSULTATION.
[In implementing the provisions of this Act, the
Secretary of Energy shall involve and consult with
Indian tribes to the maximum extent possible and where
appropriate and shall do so in a manner that is
consistent with the Federal trust and the Government-
to-Government relationships between Indian tribes and
the Federal Government.
[SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND ENERGY VERTICAL
INTEGRATION ON INDIAN RESERVATIONS.
[(a) Demonstration Programs.--The Secretary of Energy, in
consultation with the Secretary of the Interior, shall
establish and implement a demonstration program to assist
Indian tribes in pursuing energy self-sufficiency and to
promote the development of a vertically integrated energy
industry on Indian reservations, in order to increase
development of the substantial energy resources located on such
Indian reservations. Such program shall include, but not be
limited to, the following components:
[(1) The Secretary shall provide development grants
to Indian tribes or to joint ventures which are 51
percent or more controlled by an Indian tribe to assist
Indian tribes in obtaining the managerial and technical
capability needed to develop the energy resources on
Indian reservations. Such grants shall include
provisions for management training for tribal or
village members, improving the technical capacity of
the Indian tribe, and the reduction of tribal
unemployment. Each grant shall be for a period of 3
years.
[(2) The Secretary shall provide grants, not to
exceed 50 percent of the project costs, for vertical
integration projects. For purposes of this paragraph,
the term ``vertical integration project'' means a
project that promotes the vertical integration of the
energy resources on an Indian reservation, so that the
energy resources are used or processed on such Indian
reservation. Such term includes, but is not limited to,
projects involving solar and wind energy, oil
refineries, the generation and transmission of
electricity, hydroelectricity, cogeneration, natural
gas distribution, and clean, innovative uses of coal.
[(3) The Secretary shall provide technical assistance
(and such other assistance as is appropriate) to Indian
tribes for energy resource development and to promote
the vertical integration of energy resources on Indian
reservations.
[(b) Low Interest Loans.--
[(1) In general.--The Secretary shall establish a
program for making low interest loans to Indian tribes.
Such loans shall be used exclusively by Indian tribes
in the promotion of energy resource development and
vertical integration on Indian reservations.
[(2) Terms.--The Secretary shall establish reasonable
terms for loans made under this section which are to be
used to carry out the purposes of this section.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated--
[(1) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (a)(1);
[(2) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (a)(2); and
[(3) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (b).
[SEC. 2604. INDIAN ENERGY RESOURCE REGULATION.
[(a) Grants.--The Secretary of the Interior is authorized
to make annual grants to Indian tribes for the purpose of
assisting Indian tribes in the development, administration,
implementation, and enforcement of tribal laws and regulations
governing the development of energy resources on Indian
reservations.
[(b) Purpose.--The purposes for which funds provided under
a grant awarded under subsection (a) may be used include, but
are not limited to--
[(1) the training and education of employees
responsible for enforcing or monitoring compliance with
Federal and tribal laws and regulations;
[(2) the development of tribal inventories of energy
resources;
[(3) the development of tribal laws and regulations;
[(4) the development of tribal legal and governmental
infrastructure to regulate environmental quality
pursuant to Federal and tribal laws; and
[(5) the enforcement and monitoring of Federal and
tribal laws and regulations.
[(c) Other Assistance.--The Secretary of the Interior and
the Secretary of Energy shall cooperate with and provide
assistance to Indian tribes for the purpose of assisting Indian
tribes in the development, administration, and enforcement of
tribal programs. Such cooperation and assistance shall include
the following:
[(1) Technical assistance and training, including the
provision of necessary circulars and training
materials.
[(2) Assistance in the preparation and maintenance of
a continuing inventory of information on tribal energy
resources and tribal operations. In providing
assistance under this para graph, Federal departments
and agencies shall make available to Indian tribes all
relevant data concerning tribal energy resource
development consistent with applicable laws regarding
disclosure of proprietary and confidential information.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated $10,000,000 for each of the fiscal years
1994, 1995, 1996, and 1997 to carry out the purposes of this
section.
[SEC. 2605. INDIAN ENERGY RESOURCE COMMISSION.
[(a) Establishment.--There is hereby established the Indian
Energy Resource Commission (hereafter in this section referred
Ito as the ``Commission'').
[(b) Membership.--The Commission shall consist of--
[(1) 8 members appointed by the Secretary of the
Interior from recommendations submitted by Indian
tribes with developable energy resources, at least 4 of
whom shall be elected tribal leaders;
[(2) 3 members appointed by the Secretary of the
Interior from recommendations submitted by the
Governors of States that have Indian reservations with
developable energy resources;
[(3) 2 members appointed by the Secretary of the
Interior from among individuals in the private sector
with expertise in tribal and State taxation of energy
resources;
[(4) 2 members appointed by the Secretary of the
Interior from individuals with expertise in oil and gas
royalty management administration, including auditing
and accounting;
[(5) 2 members appointed by the Secretary of the
Interior from individuals in the private sector with
expertise in energy development;
[(6) 1 member appointed by the Secretary of the
Interior from recommendations submitted by National
environmental organizations;
[(7) the Secretary of the Interior, or his designee;
and
[(8) the Secretary of Energy, or his designee.
[(c) Appointments.--Members of the Commission shall be
appointed not later than 60 days after the date of the
enactment of this title.
[(d) Vacancies.--A vacancy in the Commission shall be
filled in the same manner as the original appointment was made.
A vacancy in the Commission shall not affect the powers of the
Commission.
[(e) Chairperson.--The members of the Commission shall
elect a Chairperson from among the members of the Commission.
[(f) Quorum.--Eleven members of the Commission shall
constitute a quorum, but a lesser number may hold hearings.
[(g) Organizational Meeting.--The Commission shall hold an
organizational meeting to establish the rules and procedures of
the Commission not later than 30 days after the members are
first appointed to the Commission.
[(h) Compensation.--Each member of the Commission who is
not an officer or employee of the United States shall be
compensated at a rate established by the Commission, not to
exceed the rate of basic pay payable for level IV of the
Executive Schedule under section 5315 of title.5, United States
Code, for each day (including travel time) during which such
member is engaged in the actual performance of duties as a
member of the Commission. Each member of the Commission who is
an officer or employee of the United States shall receive no
additional compensation.
[(i) Travel.--While away from their homes or regular places
of business in the performance of duties for the Commission,
all members of the Commission shall be allowed travel expenses,
including per diem in lieu of subsistence, at a rate
established by the Commission not to exceed the rates
authorized for employees under sections 5702 and 5703 of title
5, United States Code.
[(j) Commission Staff.--
[(1) Executive Director.--The Commission shall
appoint an Executive Director who shall be compensated
at a rate established by the Commission not to exceed
the rate of basic pay payable for level V of the
Executive Schedule under section 5316 of title 5,
United States Code.
[(2) Additional Personnel.--With the approval of the
Commission, the Executive Director may appoint and fix
the compensation of such additional personnel as the
Executive Director considers necessary to carry out the
duties of the Commission. Such appointments shall be
made in accordance with the provisions of title 5,
United States Code, governing appointments in the
competitive service, but at rates not to exceed the
rate of basic pay payable for level 15 of the General
Schedule.
[(3) Experts and Consultants.--Subject to such rules
as may be issued by the Commission, the Chairperson may
procure temporary and intermittent services of experts
and consultants to the same extent as is authorized by
section 3109 of title 5, United States Code, but at
rates not to exceed $200 a day for individuals.
[(4) Personnel detail authorized.--Upon the request
of the Chairperson, the head of any Federal agency is
authorized to detail, on a reimbursable basis, any of
the personnel of such agency to the Commission to
assist the Commission in carrying out its duties under
this title. Such detail shall be without interruption
or loss of civil service status or privilege.
[(k) Duties of the Commission.--The Commission shall--
[(1) Develop proposals to address the dual taxation
by Indian tribes and States of the extraction of
mineral resources on Indian reservations;
[(2) make recommendations to improve the management,
administration, accounting and auditing of royalties
associated with the production of oil and gas on Indian
reservations;
[(3) develop alternatives for the collection and
distribution of royalties associated with production of
oil and gas on Indian reservations;
[(4) develop proposals on incentives to foster the
development of energy resources on Indian reservations;
[(5) identify barriers or obstacles to the
development of energy resources on Indian reservations,
and make recommendations designed to foster the
development of energy resources on Indian reservations
and promote economic development;
[(6) develop proposals for the promotion of vertical
integration of the development of energy resources on
Indian reservations; and
[(7) develop proposals on taxation incentives to
foster the development of energy resources on Indian
reservations including, but not limited to, investment
tax credits and enterprise zone credits.
[(l) Powers of the Commission.--The powers of the
Commission shall include the following:
[(1) For the purpose of carrying out its duties under
this section, the Commission may hold hearings, take
testimony, and receive evidence at such times and
places as the Commission considers appropriate. The
Commission may administer oaths or affirmations to
witnesses appearing before the Commission.
[(2) Any member or employee of the Commission may, if
authorized by the Commission, take any action which the
Commission is authorized to take by this section.
[(3) The Commission may secure directly from any
Federal agency such information as may be necessary to
enable the Commission to carry out its duties under
this section.
[(m) Commission Report.--
[(1) In general.--The Commission shall, within 12
months after funds are made available to carry out this
section, prepare and transmit to the President, the
Committee on Interior and Insular Affairs of the House
of Representatives, the Select Committee on Indian
Affairs: of the Senate, and the Committee on Energy and
Natural Resources of the Senate, a report containing
the recommendations and proposals specified in
subsection (k).
[(2) Review and comment.--Prior to submission of the
report required under this section, the Chairman shall
circulate a draft of the report to Indian tribes and
States that have Indian reservations with developable
energy resources and other interested tribes and States
for review and comment.
[(n) Authorization of Appropriations.--There are authorized
to be appropriated to the Commission $1,000,000 to carry out
this section. Such sum shall remain available, without fiscal
year limitation, until expended.
[(o) Termination.--The Commission shall terminate 30 days
after submitting the final report required by subsection (m).
[SEC. 2606. TRIBAL GOVERNMENT ENERGY ASSISTANCE PROGRAM.
[(a) Financial Assistance.--The Secretary may grant
financial assistance to Indian tribal governments, or private
sector persons working in cooperation with Indian tribal
governments, to carry out projects to evaluate the feasibility
of, develop options for, and encourage the adoption of energy
efficiency and renewable energy projects on Indian
reservations. Such grants may include the costs of technical
assistance in resource assessment, feasibility analysis,
technology transfer, and the resolution of other technical,
financial, or management issues identified by the applicants
for such grants.
[(b) Conditions.--Any applicant for financial assistance
under this section must evidence coordination and cooperation
with, and support from, local educational institutions and the
affected local energy institutions.
[(c) Considerations.--In determining the amount of
financial assistance to be provided for a proposed project, the
Secretary shall consider--
[(1) the extent of involvement of local educational
institutions and local energy institutions;
[(2) the ease and costs of operation and maintenance
of any project contemplated as a part of the project;
[(3) whether the measure will contribute
significantly to the development, or the quality of the
environment, of the affected Indian reservations; and
[(4) any other factors which the Secretary may
determine to be relevant to a particular project.
[(d) Cost-share.--With the exception of grants awarded for
the purpose of feasibility studies, the Secretary shall require
at least 20 percent of the costs of any project under this
section to be provided from non-Federal sources, unless the
grant recipient is a for-profit private sector institution, in
which case the Secretary shall require at least 50 percent of
the costs of any project to be provided from non-Federal
sources.
[(e) Authorization of Appropriations.--There are authorized
to appropriated such sums as are necessary for the development
and implementation of the program established by this section.]
TITLE XXVI--INDIAN ENERGY
SEC. 2601. DEFINITIONS.
In this title:
(1) The term ``Director'' means the Director of the
Office of Indian Energy Policy and Programs, Department
of Energy.
(2) The term ``Indian land'' means--
(A) any land located within the boundaries of
an Indian reservation, pueblo, or rancheria;
(B) any land not located within the
boundaries of an Indian reservation, pueblo, or
rancheria, the title to which is held--
(i) in trust by the United States for
the benefit of an Indian tribe or an
individual Indian;
(ii) by an Indian tribe or an
individual Indian, subject to
restriction against alienation under
laws of the United States; or
(iii) by a dependent Indian
community; and
(C) land that is owned by an Indian tribe and
was conveyed by the United States to a Native
Corporation pursuant to the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.),
or that was conveyed by the United States to a
Native Corporation in exchange for such land.
(3) The term ``Indian reservation'' includes--
(A) an Indian reservation in existence in any
State as of the date of enactment of this
paragraph;
(B) a public domain Indian allotment; and
(C) a dependent Indian community located
within the borders of the United States,
regardless of whether the community is
located--
(i) on original or acquired territory
of the community; or
(ii) within or outside the boundaries
of any particular State.
(4)(A) The term ``Indian tribe'' has the meaning
given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b).
(B) For the purpose of paragraph (12) and sections
2603(b)(1)(C) and 2604, the term ``Indian tribe'' does
not include any Native Corporation.
(5) The term ``integration of energy resources''
means any project or activity that promotes the
location and operation of a facility (including any
pipeline, gathering system, transportation system or
facility, or electric transmission or distribution
facility) on or near Indian land to process, refine,
generate electricity from, or otherwise develop energy
resources on, Indian land.
(6) The term ``Native Corporation'' has the meaning
given the term in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602).
(7) The term ``organization'' means a partnership,
joint venture, limited liability company, or other
unincorporated association or entity that is
established to develop Indian energy resources.
(8) The term ``Program'' means the Indian energy
resource development program established under section
2602(a).
(9) The term ``Secretary'' means the Secretary of the
Interior.
(10) The term ``sequestration'' means the long-term
separation, isolation, or removal of greenhouse gases
from the atmosphere, including through a biological or
geologic method such as reforestation or an underground
reservoir.
(11) The term ``tribal energy resource development
organization'' means an organization of 2 or more
entities, at least 1 of which is an Indian tribe, that
has the written consent of the governing bodies of all
Indian tribes participating in the organization to
apply for a grant, loan, or other assistance under
section 2602.
(12) The term ``tribal land'' means any land or
interests in land owned by any Indian tribe, title to
which is held in trust by the United States, or is
subject to a restriction against alienation under laws
of the United States.
SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
(a) Department of the Interior Program.--
(1) To assist Indian tribes in the development of
energy resources and further the goal of Indian self-
determination, the Secretary shall establish and
implement an Indian energy resource development program
to assist consenting Indian tribes and tribal energy
resource development organizations in achieving the
purposes of this title.
(2) In carrying out the Program, the Secretary
shall--
(A) provide development grants to Indian
tribes and tribal energy resource development
organizations for use in developing or
obtaining the managerial and technical capacity
needed to develop energy resources on Indian
land, and to properly account for resulting
energy production and revenues;
(B) provide grants to Indian tribes and
tribal energy resource development
organizations for use in carrying out projects
to promote the integration of energy resources,
and to process, use, or develop those energy
resources, on Indian land; and
(C) provide low-interest loans to Indian
tribes and tribal energy resource development
organizations for use in the promotion of
energy resource development on Indian land and
integration of energy resources.
(3) There are authorized to be appropriated to carry
out this subsection such sums as are necessary for each
of fiscal years 2006 through 2016.
(b) Department of Energy Indian Energy Education Planning
and Management Assistance Program.--
(1) The Director shall establish programs to assist
consenting Indian tribes in meeting energy education,
research and development, planning, and management
needs.
(2) In carrying out this subsection, the Director may
provide grants, on a competitive basis, to an Indian
tribe or tribal energy resource development
organization for use in carrying out--
(A) energy, energy efficiency, and energy
conservation programs;
(B) studies and other activities supporting
tribal acquisitions of energy supplies,
services, and facilities, including the
creation of tribal utilities to assist in
securing electricity to promote electrification
of homes and businesses on Indian land;
(C) planning, construction, development,
operation, maintenance, and improvement of
tribal electrical generation, transmission, and
distribution facilities located on Indian land;
and
(D) development, construction, and
interconnection of electric power transmission
facilities located on Indian land with other
electric transmission facilities.
(3)(A) The Director shall develop a program to
support and implement research projects that provide
Indian tribes with opportunities to participate in
carbon sequestration practices on Indian land,
including--
(i) geologic sequestration;
(ii) forest sequestration;
(iii) agricultural sequestration; and
(iv) any other sequestration opportunities
the Director considers to be appropriate.
(B) The activities carried out under subparagraph (A)
shall be--
(i) coordinated with other carbon
sequestration research and development programs
conducted by the Secretary of Energy;
(ii) conducted to determine methods
consistent with existing standardized
measurement protocols to account and report the
quantity of carbon dioxide or other greenhouse
gases sequestered in projects that may be
implemented on tribal land; and
(iii) reviewed periodically to collect and
distribute to Indian tribes information on
carbon sequestration practices that will
increase the sequestration of carbon without
threatening the social and economic well-being
of Indian tribes.
(4)(A) The Director, in consultation with Indian
tribes, may develop a formula for providing grants
under this subsection.
(B) In providing a grant under this subsection, the
Director shall give priority to any application
received from an Indian tribe with inadequate electric
service (as determined by the Director).
(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 evaluating energy development proposals for
which the Secretary of Energy may provide a loan
guarantee under paragraph (1), the Secretary of Energy
shall give priority to any project that uses a new
technology, such as coal gasification, carbon capture
and sequestration, or renewable energy-based
electricity generation, if competing proposals are
similar with respect to the level at which the
proposals meet or exceed the criteria established by
the Secretary of Energy for the loan guarantee program.
(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 ormore Indian tribes.
(2) In carrying out this subsection, a Federal agency or
department shall not--
(A) pay more than the prevailing market price
for an energy product or byproduct; or
(B) obtain less than prevailing market terms
and conditions.
SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
(a) Grants.--The Secretary may provide to Indian tribes, on
an annual basis, grants for use in accordance with subsection
(b).
(b) Use of Funds.--Funds from a grant provided under this
section may be used--
(1)(A) by an Indian tribe for the development of a
tribal energy resource inventory or tribal energy
resource on Indian land;
(B) by an Indian tribe for the development of a
feasibility study or other report necessary to the
development of energy resources on Indian land;
(C) by an Indian tribe (other than an Indian Tribe in
the State of Alaska, except the Metlakatla Indian
Community) for--
(i) the development and enforcement of tribal
laws (including regulations) relating to tribal
energy resource development; and
(ii) the development of technical
infrastructure to protect the environment under
applicable law; or
(D) by a Native Corporation for the development and
implementation of corporate policies and the
development of technical infrastructure to protect the
environment under applicable law; and
(2) by an Indian tribe for the training of employees
that--
(A) are engaged in the development of energy
resources on Indian land; or
(B) are responsible for protecting the
environment.
(c) Other Assistance.--
(1) In carrying out the obligations of the United
States under this title, the Secretary shall ensure, to
the maximum extent practicable and to the extent of
available resources, that on the request of an Indian
tribe, the Indian tribe shall have available scientific
and technical information and expertise, for use in the
regulation, development, and management of energy
resources of the Indian tribe on Indian land.
(2) The Secretary may carry out paragraph (1)--
(A) directly, through the use of Federal
officials; or
(B) indirectly, by providing financial
assistance to an Indian tribe to secure
independent assistance.
SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING
ENERGY DEVELOPMENT OR TRANSMISSION.
(a) Leases and Business Agreements.--In accordance with
this section--
(1) an Indian tribe may, at the discretion of the
Indian tribe, enter into a lease or business agreement
for the purpose of energy resource development on
tribal land, including a lease or business agreement
for--
(A) exploration for, extraction of,
processing of, or other development of the
energy mineral resources of the Indian tribe
located on tribal land; or
(B) construction or operation of--
(i) an electric generation,
transmission, or distribution facility
located on tribal land; or
(ii) a facility to process or refine
energy resources developed on tribal
land; and
(2) a lease or business agreement described in
paragraph (1) shall not require the approval of the
Secretary under section 2103 of the Revised Statutes
(25 U.S.C. 81), or any other provision of law, if--
(A) the lease or business agreement is
executed pursuant to a tribal energy resource
agreement approved by the Secretary under
subsection (e);
(B) the term of the lease or business
agreement does not exceed--
(i) 30 years; or
(ii) in the case of a lease for the
production of oil resources, gas
resources, or both, 10 years and as
long thereafter as oil or gas is
produced in paying quantities; and
(C) the Indian tribe has entered into a
tribal energy resource agreement with the
Secretary, as described in subsection (e),
relating to the development of energy resources
on tribal land (including the periodic review
and evaluation of the activities of the Indian
tribe under the agreement, to be conducted
pursuant to subsection (e)(2)(D)(i)).
(b) Rights-of Way for Pipelines or Electric Transmission or
Distribution Lines.--An Indian tribe may grant a right-of-way
over tribal land for a pipeline or an electric transmission or
distribution line without approval by the Secretary if--
(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the
Secretary under subsection (e);
(2) the term of the right-of-way does not exceed 30
years;
(3) the pipeline or electric transmission or
distribution line serves--
(A) an electric generation, transmission, or
distribution facility located on tribal land;
or
(B) a facility located on tribal land that
processes or refines energy resources developed
on tribal land; and
(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including the periodic review
and evaluation of the activities of the Indian tribe
under an agreement described in subparagraphs (D) and
(E) of subsection (e)(2)).
(c) Renewals.--A lease or business agreement entered into,
or a right-of-way granted, by an Indian tribe under this
section may be renewed at the discretion of the Indian tribe in
accordance with this section.
(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources
under this section shall be valid unless the lease, business
agreement, or right-of-way is authorized by a tribal energy
resource agreement approved by the Secretary under subsection
(e)(2).
(e) Tribal Energy Resource Agreements.--
(1) On the date on which regulations are promulgated
under paragraph (8), an Indian tribe may submit to the
Secretary for approval a tribal energy resource
agreement governing leases, business agreements, and
rights-of-way under this section.
(2)(A) Not later than 1 year after the date on which
the Secretary receives a tribal energy resource
agreement from an Indian tribe under paragraph (1), or
not later than 60 days after the Secretary receives a
revised tribal energy resource agreement from an Indian
tribe under paragraph (4)(C) (or a later date, as
agreed to by the Secretary and the Indian tribe), the
Secretary shall approve or disapprove the tribal energy
resource agreement.
(B) The Secretary shall approve a tribal energy
resource agreement submitted under paragraph (1) if--
(i) the Secretary determines that the Indian
tribe has demonstrated that the Indian tribe
has sufficient capacity to regulate the
development of energy resources of the Indian
tribe;
(ii) the tribal energy resource agreement
includes provisions required under subparagraph
(D); and
(iii) the tribal energy resource agreement
includes provisions that, with respect to a
lease, business agreement, or right-of-way
under this section--
(I) ensure the acquisition of
necessary information from the
applicant for the lease, business
agreement, or right-of-way;
(II) address the term of the lease or
business agreement or the term of
conveyance of the right-of-way;
(III) address amendments and
renewals;
(IV) address the economic return to
the Indian tribe under leases, business
agreements, and rights-of-way;
(V) address technical or other
relevant requirements;
(VI) establish requirements for
environmental review in accordance with
subparagraph (C);
(VII) ensure compliance with all
applicable environmental laws,
including a requirement that each
lease, business agreement, and right-
of-way state that the lessee, operator,
or right-of-way grantee shall comply
with all such laws;
(VIII) identify final approval
authority;
(IX) provide for public notification
of final approvals;
(X) establish a process for
consultation with any affected States
regarding off-reservation impacts, if
any, identified under subparagraph
(C)(i);
(XI) describe the remedies for breach
of the lease, business agreement, or
right-of-way;
(XII) require each lease, business
agreement, and right-of-way to include
a statement that, if any of its
provisions violates an express term or
requirement of the tribal energy
resource agreement pursuant to which
the lease, business agreement, or
right-of-way was executed--
(aa) the provision shall be
null and void; and
(bb) if the Secretary
determines the provision to be
material, the Secretary may
suspend or rescind the lease,
business agreement, or right-
of-way or take other
appropriate action that the
Secretary determines to be in
the best interest of the Indian
tribe;
(XIII) require each lease, business
agreement, and right-of-way to provide
that it will become effective on the
date on which a copy of the executed
lease, business agreement, or right-of-
way is delivered to the Secretary in
accordance with regulations promulgated
under paragraph (8);
(XIV) include citations to tribal
laws, regulations, or procedures, if
any, that set out tribal remedies that
must be exhausted before a petition may
be submitted to the Secretary under
paragraph (7)(B);
(XV) specify the financial
assistance, if any, to be provided by
the Secretary to the Indian tribe to
assist in implementation of the tribal
energy resource agreement, including
environmental review of individual
projects; and
(XVI) in accordance with the
regulations promulgated by the
Secretary under paragraph (8), require
that the Indian tribe, as soon as
practicable after receipt of a notice
by the Indian tribe, give written
notice to theSecretary of--
(aa) any breach or other
violation by another party of
any provision in a lease,
business agreement, or right-
of-way entered into under the
tribal energy resource
agreement; and
(bb) any activity or
occurrence under a lease,
business agreement, or right-
of-way that constitutes a
violation of Federal or tribal
environmental laws.
(C) Tribal energy resource agreements
submitted under paragraph (1) shall establish,
and include provisions to ensure compliance
with, an environmental review process that,
with respect to a lease, business agreement, or
right-of-way under this section, provides for,
at a minimum--
(i) the identification and evaluation
of all significant environmental
effects (as compared to a no-action
alternative), including effects on
cultural resources;
(ii) the identification of proposed
mitigation measures, if any, and
incorporation of the mitigation
measures into the lease, business
agreement, or right-of-way;
(iii) a process for ensuring that--
(I) the public is informed
of, and has an opportunity to
comment on, the environmental
impacts of the proposed action;
and
(II) responses to relevant
and substantive comments are
provided, before tribal
approval of the lease, business
agreement, or right-of-way;
(iv) sufficient administrative
support and technical capability to
carry out the environmental review
process; and
(v) oversight by the Indian tribe of
energy development activities by any
other party under any lease, business
agreement, or right-of-way entered into
pursuant to the tribal energy resource
agreement, to determine whether the
activities are in compliance with the
tribal energy resource agreement and
applicable Federal environmental laws.
(D) A tribal energy resource agreement
between the Secretary and an Indian tribe under
this subsection shall include--
(i) provisions requiring the
Secretary to conduct a periodic review
and evaluation to monitor the
performance of the activities of the
Indian tribe associated with the
development of energy resources under
the tribal energy resource agreement;
and
(ii) if a periodic review and
evaluation, or an investigation, by the
Secretary of any breach or violation
described in a notice provided by the
Indian tribe to the Secretary in
accordance with subparagraph
(B)(iii)(XVI), results in a finding by
the Secretary of imminent jeopardy to a
physical trust asset arising from a
violation of the tribal energy resource
agreement or applicable Federal laws,
provisions authorizing the Secretary to
take actions determined by the
Secretary to be necessary to protect
the asset, including reassumption of
responsibility for activities
associated with the development of
energy resources on tribal land until
the violation and any condition that
caused the jeopardy are corrected.
(E) Periodic review and evaluation under
subparagraph (D) shall be conducted on an
annual basis, except that, after the third
annual review and evaluation, the Secretary and
the Indian tribe may mutually agree to amend
the tribal energy resource agreement to
authorize the review and evaluation under
subparagraph (D) to be conducted once every 2
years.
(3) The Secretary shall provide notice and
opportunity for public comment on tribal energy
resource agreements submitted for approval under
paragraph (1).
(4) If the Secretary disapproves a tribal energy
resource agreement submitted by an Indian tribe under
paragraph (1), the Secretary shall, not later than 10
days after the date of disapproval--
(A) notify the Indian tribe in writing of the
basis for the disapproval;
``(B) identify what changes or other actions
are required to address the concerns of the
Secretary; and
(C) provide the Indian tribe with an
opportunity to revise and resubmit the tribal
energy resource agreement.
(5) If an Indian tribe executes a lease or business
agreement, or grants a right-of-way, in accordance with
a tribal energy resource agreement approved under this
subsection, the Indian tribe shall, in accordance with
the process and requirements under regulations
promulgated under paragraph (8), provide to the
Secretary--
(A) a copy of the lease, business agreement,
or right-of-way document (including all
amendments to and renewals of the document);
and
(B) in the case of a tribal energy resource
agreement or a lease, business agreement, or
right-of-way that permits payments to be made
directly to the Indian tribe, information and
documentation of those payments sufficient to
enable the Secretary to discharge the trust
responsibility of the United States to enforce
the terms of, and protect the rights of the
Indian tribe under, the lease, business
agreement, or right-of-way.
(6)(A) In carrying out this section, the Secretary
shall--
(i) act in accordance with the trust
responsibility of the United States relating to
mineral and other trust resources; and
(ii) act in good faith and in the best
interests of the Indian tribes.
(B) Subject to the provisions of subsections (a)(2),
(b), and (c), waiving the requirement of Secretarial
approval of leases, business agreements, and rights-of-
way executed pursuant to tribal energy resource
agreements approved under this section, and the
provisions of subparagraph (D), nothing in this section
shall absolve the United States from any responsibility
to Indians or Indian tribes, including, but not limited
to, those which derive from the trust relationship, or
from any treaties, statutes, and other laws of the
United States, Executive Orders, or agreements between
the United States and any Indian tribe.
(C) The Secretary shall continue to fulfill the trust
obligation of the United States to ensure that the
rights and interests of an Indian tribe are protected
if--
(i) any other party to a lease, business
agreement, or right-of-way violates any
applicable Federal law or the terms of any
lease, business agreement, or right-of-way
under this section; or
(ii) any provision in a lease, business
agreement, or right-of-way violates the tribal
energy resource agreement pursuant to which the
lease, business agreement, or right-of-way was
executed.
(D)(i) In this subparagraph, the term ``negotiated
term'' means any term or provision that is negotiated
by an Indian tribe and any other party to a lease,
business agreement, or right-of-way entered into
pursuant to an approved tribal energy resource
agreement.
(ii) Notwithstanding subparagraph (B), the United
States shall not be liable to any party (including any
Indian tribe) for any negotiated term of, or any loss
resulting from the negotiated terms of, a lease,
business agreement, or right-of-way executed pursuant
to and in accordance with a tribal energy resource
agreement approved by the Secretary under paragraph
(2).
(7)(A) In this paragraph, the term ``interested
party'' means any person (including an entity) that has
demonstrated that an interest of the person has
sustained, or will sustain, an adverse environmental
impact as a result of the failure of an Indian tribe to
comply with a tribal energy resource agreement of the
Indian tribe approved by the Secretary under paragraph
(2).
(B) After exhaustion of any tribal remedy, and in
accordance with regulations promulgated by the
Secretary under paragraph (8), an interested party may
submit to the Secretary a petition to review the
compliance by an Indian tribe with a tribal energy
resource agreement of the Indian tribe approved by the
Secretary under paragraph (2).
(C)(i) Not later than 20 days after the date on which
the Secretary receives a petition under subparagraph
(B), the Secretary shall--
(I) provide to the Indian tribe a copy of the
petition; and
(II) consult with the Indian tribe regarding
any noncompliance alleged in the petition.
(ii) Not later than 45 days after the date on which a
consultation under clause (i)(II) takes place, the
Indian tribe shall respond to any claim made in a
petition under subparagraph (B).
(iii) The Secretary shall act in accordance with
subparagraphs (D) and (E) only if the Indian tribe--
(I) denies, or fails to respond to, each
claim made in the petition within the period
described in clause (ii); or
(II) fails, refuses, or is unable to cure or
otherwise resolve each claim made in the
petition within a reasonable period, as
determined by the Secretary, after the
expiration of the period described in clause
(ii).
(D)(i) Not later than 120 days after the date on
which the Secretary receives a petition under
subparagraph (B), the Secretary shall determine whether
the Indian tribe is not in compliance with the tribal
energy resource agreement.
(ii) The Secretary may adopt procedures under
paragraph (8) authorizing an extension of time, not to
exceed 120 days, for making the determination under
clause (i) in any case in which the Secretary
determines that additional time is necessary to
evaluate the allegations of the petition.
(iii) Subject to subparagraph (E), if the Secretary
determines that the Indian tribe is not in compliance
with the tribal energy resource agreement, the
Secretary shall take such action as the Secretary
determines to be necessary to ensure compliance with
the tribal energy resource agreement, including--
(I) temporarily suspending any activity under
a lease, business agreement, or right-of-way
under this section until the Indian tribe is in
compliance with the approved tribal energy
resource agreement; or
(II) rescinding approval of all or part of
the tribal energy resource agreement, and if
all of the agreement is rescinded, reassuming
the responsibility for approval of any future
leases, business agreements, or rights-of-way
described in subsection (a) or (b).
(E) Before taking an action described in subparagraph
(D)(iii), the Secretary shall--
(i) make a written determination that
describes the manner in which the tribal energy
resource agreement has been violated;
(ii) provide the Indian tribe with a written
notice of the violations together with the
written determination; and
(iii) before taking any action described in
subparagraph (D)(iii) or seeking any other
remedy, provide the Indian tribe with a hearing
and a reasonable opportunity to attain
compliance with the tribal energy resource
agreement.
(F) An Indian tribe described in subparagraph (E)
shall retain all rights to appeal under any regulation
promulgated by the Secretary.
(8) Not later than 1 year after the date of enactment
of the Energy Policy Act of 2005, the Secretary shall
promulgate regulations that implement this subsection,
including--
(A) criteria to be used in determining the
capacity of an Indian tribe under paragraph
(2)(B)(i), including the experience of the
Indian tribe in managing natural resources and
financial and administrative resources
available for use by the Indian tribe in
implementing the approved tribal energy
resourceagreement of the Indian tribe;
(B) a process and requirements in accordance
with which an Indian tribe may--
(i) voluntarily rescind a tribal
energy resource agreement approved by
the Secretary under this subsection;
and
(ii) return to the Secretary the
responsibility to approve any future
lease, business agreement, or right-of-
way under this subsection;
(C) provisions establishing the scope of, and
procedures for, the periodic review and
evaluation described in subparagraphs (D) and
(E) of paragraph (2), including provisions for
review of transactions, reports, site
inspections, and any other review activities
the Secretary determines to be appropriate; and
(D) provisions describing final agency
actions after exhaustion of administrative
appeals from determinations of the Secretary
under paragraph (7).
(f) No Effect on Other Law.--Nothing in this section
affects the application of--
(1) any Federal environmental law;
(2) the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 et seq.); or
(3) except as otherwise provided in this title, the
Indian Mineral Development Act of 1982 (25 U.S.C. 2101
et seq.).
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
for each of fiscal years 2006 through 2016 to carry out this
section and to make grants or provide other appropriate
assistance to Indian tribes to assist the Indian tribes in
developing and implementing tribal energy resource agreements
in accordance with this section.
SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.
(a) Definitions.--In this section:
(1) The term ``Administrator'' means the
Administrator of the Bonneville Power Administration
and the Administrator of the Western Area Power
Administration.
(2) The term ``power marketing administration''
means--
(A) the Bonneville Power Administration;
(B) the Western Area Power Administration;
and
(C) any other power administration the power
allocation of which is used by or for the
benefit of an Indian tribe located in the
service area of the administration.
(b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy
development by taking such actions as the Administrators
determine to be appropriate, including administration of
programs of the power marketing administration, in accordance
with this section.
(c) Action by Administrators.--In carrying out this
section, in accordance with laws in existence on the date of
enactment of the Energy Policy Act of 2005--
(1) each Administrator shall consider the unique
relationship that exists between the United States and
Indian tribes;
(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to meet
firming and reserve needs of Indian-owned energy
projects on Indian land;
(3) the Administrator of the Western Area Power
Administration may purchase non-federally generated
power from Indian tribes to meet the firming and
reserve requirements of the Western Area Power
Administration; and
(4) each Administrator shall not--
(A) pay more than the prevailing market price
for an energy product; or
(B) obtain less than prevailing market terms
and conditions.
(d) Assistance for Transmission System Use.--
(1) An Administrator may provide technical assistance
to Indian tribes seeking to use the high-voltage
transmission system for delivery of electric power.
(2) The costs of technical assistance provided under
paragraph (1) shall be funded--
(A) by the Secretary of Energy using
nonreimbursable funds appropriated for that
purpose; or
(B) by any appropriate Indian tribe.
(e) Power Allocation Study.--Not later than 2 years after
the date of enactment of the Energy Policy Act of 2005, the
Secretary of Energy shall submit to Congress a report that--
(1) describes the use by Indian tribes of Federal
power allocations of the power marketing administration
(or power sold by the Southwestern Power
Administration) to or for the benefit of Indian tribes
in a service area of the power marketing
administration; and
(2) identifies--
(A) the quantity of power allocated to, or
used for the benefit of, Indian tribes by the
Western Area Power Administration;
(B) the quantity of power sold to Indian
tribes by any other power marketing
administration; and
(C) barriers that impede tribal access to and
use of Federal power, including an assessment
of opportunities to remove those barriers and
improve the ability of power marketing
administrations to deliver Federal power.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $750,000, non-
reimbursable, to remain available until expended.
SEC 2606. WIND AND HYDROPOWER FEASIBILITY STUDY.
(a) Study.--The Secretary of Energy, in coordination with
the Secretary of the Army and the Secretary, shall conduct a
study of the cost and feasibility of developing a demonstration
project that uses wind energy generated by Indian tribes and
hydropower generated by the Army Corps of Engineers on the
Missouri River to supply firming power to the Western Area
Power Administration.
(b) Scope of Study.--The study shall--
(1) determine the feasibility of blending wind energy
and hydropower generated from the Missouri River dams
operated by the Army Corps of Engineers;
(2) review historical and projected requirements for,
and patterns of availability and use of, firming power;
(3) assess the wind energy resource potential on
tribal land and projected cost savings through a blend
of wind and hydropower over a 30-year period;
(4) determine seasonal capacity needs and associated
transmission upgrades for integration of tribal wind
generation; and
(5) include an independent tribal engineer as a study
team member.
(c) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the Secretary and
the Secretary of the Army shall submit to Congress a report
that describes the results of the study, including--
(1) an analysis of the potential energy cost or
benefits to the customers of the Western Area Power
Administration through the use of combined wind and
hydropower;
(2) an evaluation of whether a combined wind and
hydropower system can reduce reservoir fluctuation,
enhance efficient and reliable energy production, and
provide Missouri River management flexibility;
(3) recommendations for a demonstration project to be
carried out by the Western Area Power Administration,
in partnership with an Indian tribal government or
tribal energy resource development organization, to
demonstrate the feasibility and potential of using wind
energy produced on Indian land to supply firming energy
to the Western Area Power Administration or any other
Federal power marketing agency; and
(4) an identification of--
(A) the economic and environmental costs of,
or benefits to be realized through, a Federal-
tribal partnership; and
(B) the manner in which a Federal-tribal
partnership could contribute to the energy
security of the United States.
(d) Funding.--
(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$1,000,000, to remain available until expended.
(2) Nonreimbursability.--Costs incurred by the
Secretary in carrying out this section shall be
nonreimbursable.
----------
FARM SECURITY AND RURAL INVESTMENT ACT OF 2002--PUBLIC LAW 107-171, (7
U.S.C. 8108(a)(3)(A))
TITLE IX--ENERGY
BIOENERGY PROGRAM
Sec. 9010
(a) * * *
(3) Eligible commodity.--The term ``eligible
commodity'' means--
(A) wheat, corn, grain sorghum, barley, oats,
rice, soybeans, sunflower seed, rapeseed,
canola, safflower, flaxseed, mustard, crambe,
sesame seed, potatoes, sugarcane, sugar beets,
products of sugarcane or sugar beets, and
cottonseed;
----------
GEOTHERMAL STEAM ACT OF 1970--PUBLIC LAW 91-581, AS AMENDED (30 U.S.C.
1001 ET SEQ.)
AN ACT To authorize the Secretary of the Interior to make
disposition of [geothermal steam and associated geothermal
resources] geothermal resources, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, [That this]
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Geothermal Steam Act of
1970''.
[Sec. 2. As]
SEC. 2. DEFINITIONS.
As used in this Act, the term--
* * * * * * *
(c) ``[geothermal steam and associated geothermal
resources] geothermal resources'' means (i) all products of
geothermal processes, embracing indigenous steam, hot water and
hot brines; (ii) steam and other gases, hot water and hot
brines resulting from water, gas, or other fluids artificially
introduced into geothermal formations; (iii) heat or other
associated energy found in geothermal formations; and (iv) any
byproduct derived from;
* * * * * * *
[(e) ``known geothermal resources area'' means an area in
which the geology, nearby discoveries, competitive interests,
or other indicia would, in the opinion of the Secretary,
engender a belief in men who are experienced in the subject
matter that the prospects for extraction of geothermal steam or
associated geothermal resources are good enough to warrant
expenditures of money for that purpose.] (e) ``direct use''
means use of geothermal resources for commercial, residential,
agricultural, public facilities, or other energy needs other
than the commercial production of electricity; and
* * * * * * *
[Sec. 3. Subject]
SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.
Subject to the provisions of section 15 of this Act, the
Secretary of the Interior may issue leases for the development
and utilization of [geothermal steam and associated geothermal
resources] geothermal resources (1) in lands administered by
him, including public, withdrawn, and acquired lands, (2) in
any national forest or other lands administered by the
Department of Agriculture through the Forest Service, including
Public, withdrawn, and acquired lands, and (3) in lands which
have been conveyed by the United States subject to a
reservation to the United States of the [geothermal steam and
associated geothermal resources] geothermal resources therein.
[Sec. 4. If lands to be leased under this Act are within
any known geothermal resources area, they shall be leased to
the highest responsible qualified bidder by competitive bidding
under regulations formulated by the Secretary. If the lands to
be leased are not within any known geothermal resources area,
the qualified person first making application for the lease
shall be entitled to a lease of such lands without competitive
bidding. Notwithstanding the foregoing, at any time within one
hundred and eighty days following the effective date of this
Act:]
[(a) with respect to all lands which were on September 7,
1965, subject to valid leases or permits issued under the
Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C.
181 et seq.), or under the Mineral Leasing Act of Acquired
Lands, as amended (30 U.S.C. 351, 358), or to existing mining
claims located on or prior to September 7, 1965, the lessees or
permittees or claimants or their successors in interest who are
qualified to hold geothermal leases shall have the right to
convert such leases or permits or claims to geothermal leases
covering the same lands;]
[(b) where there are conflicting claims, leases, or permits
therefore embracing the same land, the person who first was
issued a lease or permit, or who first recorded the mining
claim shall be entitled to first consideration;]
[(c) with respect to all lands which were on September 7,
1965, the subject of applications for leases or permits under
the above Acts, the applicants may convert their applications
to applications for geothermal leases having priorities dating
from the time of filing of such applications under such Acts;]
[(d) no person shall be permitted to convert mineral
leases, permits, applications therefore, or mining claims for
more than 10,240 acres;]
[(e) the conversion of leases, permits, and mining claims
and applications for leases and permits shall be accomplished
in accordance with regulations prescribed by the Secretary. No
right to conversion to a geothermal lease shall accrue to any
person under this section unless such person shows to the
reasonable satisfaction of the Secretary that substantial
expenditures for the exploration, development, or production of
geothermal steam have been made by the applicant who is seeking
conversion, on the lands for which a lease is sought or on
adjoining, adjacent, or nearby Federal or non-Federal lands;
and]
[(f) with respect to lands within any known geothermal
resources area and which are subject to a right to conversion
to a geothermal lease, such lands shall be leased by
competitive bidding: Provided, That the competitive geothermal
lease shall be issued to the person owning the right to
conversion to a geothermal lease if he makes payment of an
amount equal to the highest bona fide bid for the competitive
geothermal lease, plus the rental for the first year, within
thirty days after he receives written notice from the Secretary
of the amount of the highest bid.]
SEC. 4. LEASING PROCEDURES.
(a) Nominations.--The Secretary shall accept nominations of
land to be leased at any time from qualified companies and
individuals under this Act.
(b) Competitive Lease Sale Required.--
(1) In general.--Except as otherwise specifically
provided by this Act, all land to be leased that is not
subject to leasing under subsection (c) shall be leased
as provided in this subsection to the highest
responsible qualified bidder, as determined by the
Secretary.
(2) Competitive lease sales.--The Secretary shall
hold a competitive lease sale at least once every 2
years for land in a State that has nominations pending
under subsection (a) if the land is otherwise available
for leasing.
(c) Noncompetitive Leasing.--The Secretary shall make
available for a period of 2 years for noncompetitive leasing
any tract for which a competitive lease sale is held, but for
which the Secretary does not receive any bids in a competitive
lease sale.
(d) Pending Lease Applications.--
(1) In general.--It shall be a priority for the
Secretary, and for the Secretary of Agriculture with
respect to National Forest Systems land, to ensure
timely completion of administrative actions necessary
to process applications for geothermal leasing pending
on May 19, 2005.
(2) Administration.--An application described in
paragraph (1) and any lease issued pursuant to the
application--
(A) except as provided in subparagraph (B),
shall be subject to this section as in effect
on the day before the date of enactment of this
paragraph; or
(B) at the election of the applicant, shall
be subject to this section as in effect on the
effective date of this paragraph.
(e) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify
areas in which the land to be leased under this Act exclusively
for direct use of geothermal resources without sale for
purposes other than commercial generation of electricity may be
leased to any qualified applicant that first applies for such a
lease under regulations issued by the Secretary, if the
Secretary--
(1) publishes a notice of the land proposed for
leasing not later than 120 days before the date of the
issuance of the lease;
(2) does not receive during the 120-day period
beginning on the date of the publication any nomination
to include the land concerned in the next competitive
lease sale; and
(3) determines there is no competitive interest in
the land to be leased.
(f) Area Subject to Lease for Direct Use.--
(1) In general.--Subject to paragraph (2), a
geothermal lease for the direct use of geothermal
resources shall cover not more than the quantity of
acreage determined by the Secretary to be reasonably
necessary for the proposed use.
(2) Limitations.--The quantity of acreage covered by
the lease shall not exceed the limitations established
under section 7.
[Sec. 5. Geothermal]
SEC. 5. RENTS AND ROYALTIES.
(a) In General.--Geothermal leases shall provide for--
[(a)] (1) a royalty of not less than 10 per centum or more
than 15 per centum of the amount or value of steam, or any
other form of heat or energy derived from production under the
lease and sold or utilized by the lessee or reasonably
susceptible to sale or utilization by the lessee;
[(b)(2) a royalty of not more than 5 per centum of the
value of any byproduct derived from production under the lease
and sold or utilized or reasonably susceptible of sale or
utilization by the lessee, except that as to any byproduct
which is a mineral named in section 1 of the Mineral Leasing
Act of February 25, 1920, as amended (30 U.S.C. 181), the rate
of royalty for such mineral shall be the same as that provided
in that Act and the maximum rate of royalty for such mineral
shall not exceed the maximum royalty applicable under that
Act;] (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;
[(c)(3) payment in advance of an annual rental of not less
than $1 per acre or fraction thereof for each year of the
lease. If there is no well on the leased lands capable of
producing geothermal resources in commercial quantities, the
failure to pay rental on or before the anniversary date shall
terminate the lease by operation of law: Provided, however,
That whenever the Secretary discovers that the rental payment
due under a lease is paid timely but the amount of the payment
is deficient because of an error or other reason and the
deficiency is nominal, as determined by the Secretary pursuant
to regulations prescribed by him, he shall notify the lessee of
the deficiency and such lease shall not automatically terminate
unless the lessee fails to pay the deficiency within the period
prescribed in the notice: Provided further, That where any
lease has been terminated automatically by operation of law
under this section for failure to pay rental timely and it is
shown to the satisfaction of the Secretary of the Interior that
the failure to pay timely the lease rental was justifiable or
not due to a lack of reasonable diligence, he in his judgment
may reinstate the lease if--
[(1)(A) a petition for reinstatement, together with the
required rental, is filed with the Secretary of the Interior;
and
[(2)(B) no valid lease has been issued affecting any of the
lands in the terminated lease prior to the filing of the
petition for reinstatement;] (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; and
[(d)] (4) a minimum royalty of $2 per acre or fraction
thereof in lieu of rental payable at the expiration of each
lease year for each producing lease, commencing with the lease
year beginning on or after the commencement of production in
commercial quantities. For the purpose of determining royalties
hereunder the value of any geothermal steam and byproduct used
by the lessee and not sold and reasonably susceptible of sale
shall be determined by the Secretary, who shall take into
consideration the cost of exploration and production and the
economic value of the resource in terms of its ultimate
utilization.
(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
or any other basis that the Secretary finds
appropriate under the circumstances; and
(B) shall ensure a fair return to the United
States for use of the resource.
(3) State or local governments.--If a State or local
government is the lessee and uses geothermal resources
without sale and for purposes other than commercial
generation of electricity, the Secretary shall charge
only a nominal fee for use of the resource.
(c) Termination of Lease for Failure to Pay Rental.--
(1) In general.--The Secretary shall terminate any
lease with respect to which rental is not paid in
accordance with this Act and the terms of the lease
under which the rental is required, on the expiration
of the 45-day period beginning on the date of the
failure to pay the rental.
(2) Notification.--The Secretary shall promptly
notify a lessee that has not paid rental required under
the lease that the lease will be terminated at the end
of the period referred to in paragraph (1).
(3) Reinstatement.--A lease that would otherwise
terminate under paragraph (1) shall not terminate under
that paragraph if the lessee pays to the Secretary,
before the end of the period referred to in paragraph
(1), the amount of rental due plus a late fee equal to
10 percent of the amount.
(d) Advanced Royalties Required for Cessation of
Production.--
(1) In general.--Subject to paragraphs (2) and (3),
if, at any time after commercial production under a
lease is achieved, production ceases for any reason,
the lease shall remain in full force and effect for a
period of not more than an aggregate number of 10 years
beginning on the date production ceases, if, during the
period in which production is ceased, the lessee pays
royalties in advance at the monthly average rate at
which the royalty was paid during the period of
production.
(2) Reduction.--The amount of any production royalty
paid for any year shall be reduced (but not below 0) by
the amount of any advanced royalties paid under the
lease to the extent that the advance royalties have not
been used to reduce production royalties for a prior
year.
(3) Exceptions.--Paragraph (1) shall not apply if the
cessation in production is required or otherwise caused
by--
(A) the Secretary;
(B) the Secretary of the Air Force;
(C) the Secretary of the Army;
(D) the Secretary of the Navy;
(E) a State or a political subdivision of a
State; or
(F) a force majeure.
[Sec. 6. (a) Geothermal]
SEC. 6. TERMS.
(a) Geothermal leases shall be for a primary term of ten
years. If geothermal steam is produced or utilized in
commercial quantities within this term, such lease shall
continue for so long thereafter as geothermal steam is produced
or utilized in commercial quantities, but such continuation
shall not exceed an additional forty years.
* * * * * * *
(f) Minerals locatable under the mining laws of the United
States in lands subject to a geothermal lease issued under the
provisions of this Act which are not associated with the
[geothermal steam and associated geothermal resources]
geothermal resources of such lands as defined in section 2(c)
herein shall be locatable under said mining laws in accordance
with the principles of the Multiple Mineral Development Act (68
Stat. 708; found in 30 U.S.C. 521 et seq.).
* * * * * * *
(i)(1) To meet the payments in lieu of commercial
quantities production requirement referred to in subsection
(g)(1)(A) the lessee must agree to the modification of the
terms and conditions of the lease to require annual payments to
the Secretary in accordance with this subsection.
[(2) Payments under this subsection shall commence with
the first year of the extension. Payments shall be equal to the
following:
[(A) In each of the first through the fifth payment
years, at least $3.00 per acre or fraction thereof, of
lands under lease.
[(B) In each of the sixth through the tenth payment
years, at least $6.00 per acre or fraction thereof, of
lands under lease.]
(2) The Secretary shall, by regulation, establish
payments under this subsection at levels that ensure
the diligent development of the lease.
* * * * * * *
[Sec. 7. A geothermal]
SEC. 7. ACREAGE OF GEOTHERMAL LEASE.
A geothermal lease shall embrace a reasonably compact area
of not more than two thousand five hundred and sixty acres,
except where a departure therefrom is occasioned by an
irregular subdivision or subdivisions. No person, association,
or corporation, except as otherwise provided in this Act, shall
take, hold, own, or control at one time, whether acquired
directly from the Secretary under this Act or otherwise, any
direct or indirect interest in Federal geothermal leases in any
one State exceeding twenty thousand four hundred and eighty
acres, including leases acquired under the provisions of
section 4 of this Act.
At any time after fifteen years from the effective date of
this Act the Secretary, after public hearings, may increase
this maximum holding in any one State by regulation, not to
exceed fifty-one thousand two hundred acres.
[Sec. 8. (a) The]
SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.
(a) The Secretary may readjust the terms and conditions,
except as otherwise provided herein, of any geothermal lease
issued under this Act at not less than ten-year intervals
beginning ten years after the date the geothermal steam is
produced, as determined by the Secretary. Each geothermal lease
issued under this Act shall provide for such readjustment. The
Secretary shall give notice of any proposed readjustment of
terms and conditions, and, unless the lessee files with the
Secretary objection to the proposed terms or relinquishes the
lease within thirty days after receipts of such notice, the
lessee shall conclusively be deemed to have agreed with such
terms and conditions. If the lessee files objections, and no
agreement can be reached between the Secretary and the lessee
within a period of not less than sixty days, the lease may be
terminated by either party.
* * * * * * *
[Sec. 9. If]
SEC. 9. BYPRODUCTS.
If the production, use, or conversion of geothermal steam
is susceptible of producing a valuable byproduct or byproducts,
including commercially demineralized water for beneficial uses
in accordance with applicable State water laws, the Secretary
shall require substantial beneficial production or use thereof
unless, in individual circumstances he modifies or waives this
requirement in the interest of conservation of natural
resources or for other reasons satisfactory to him. However,
the production or use of such byproducts shall be subject to
the rights of the holders of preexisting leases, claims, or
permits covering the same land or the same minerals, if any.
[Sec. 10. The]
SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.
The holder of any geothermal lease at any time may make and
file in the appropriate land office a written relinquishment of
all rights under such lease or of any legal subdivision of the
area covered by such lease. Such relinquishment shall be
effective as of the date of its filing. Thereupon the lessee
shall be released of all obligations thereafter accruing under
said lease with respect to the lands relinquished, but no such
relinquishment shall release such lessee, or his surety or
bond, from any liability for breach of any obligation of the
lease, other than an obligation to drill, accrued at the date
of the relinquishment, or from the continued obligation, in
accordance with the applicable lease terms and regulations, (1)
to make payment of all accrued rentals any royalties, (2) to
place all wells on the relinquished lands in condition for
suspension or abandonment, and (3) to protect or restore
substantially the surface and surface resources.
[Sec. 11. The]
SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.
The Secretary, upon application by the lessee, may
authorize the lessee to suspend operations and production on a
producing lease and he may, on his own motion, in the interest
of conservation suspend operations on any lease but in either
case he may extend the lease term for the period of any
suspension, and he may waive, suspend, or reduce the rental or
royalty required in such lease.
[Sec. 12. Leases]
SEC. 12. TERMINATION OF LEASES.
Leases may be terminated by the Secretary for any violation
of the regulations or lease terms after thirty days notice
provided that such violation is not corrected within the notice
period, or in the event the violation is such that it cannot be
corrected within the notice period then provided that lessee
has not commenced in good faith within said notice period to
correct such violation and thereafter to proceed diligently to
correct such violation. Lessee shall be entitled to a hearing
on the matter of such claimed violation or proposed termination
of lease if request for a hearing is made to the Secretary
within the thirty-day period after notice. The period for
correction of violation or commencement to correct such
violation of regulations or of lease terms, as aforesaid, shall
be extended to thirty days after the Secretary's decision after
such hearing if the Secretary shall find that a violation
exists.
[Sec. 13. The]
SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.
The Secretary may waive, suspend, or reduce the rental or
royalty for any lease or portion thereof in the interests of
conservation and to encourage the greatest ultimate recovery of
geothermal resources, if he determines that this is necessary
to promote development or that the lease cannot be successfully
operated under the lease terms.
[Sec. 14. Subject]
SEC. 14. SURFACE LAND USE.
Subject to the other provisions of this Act, a lessee shall
be entitled to use so much of the surface of the land covered
by his geothermal lease as may be found by the Secretary to be
necessary for the production, utilization, and conservation of
geothermal resources.
[Sec. 15. (a) Geothermal]
SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.
(a) Geothermal leases for lands withdrawn or acquired in
aid of functions of the Department of the Interior may be
issued only under such terms and conditions as the Secretary
may prescribe to insure adequate utilization of the lands for
the purposes for which they were withdrawn or acquired.
* * * * * * *
[Sec. 16. Leases]
SEC. 16. REQUIREMENT FOR LESSEES.
Leases under this Act may be issued only to citizens of the
United States, associations of such citizens, corporations
organized under the laws of the United States or of any State
or the District of Columbia, or governmental units, including,
without limitation, municipalities.
[Sec. 17. Administration]
SEC. 17. ADMINISTRATION.
Administration of this Act shall be under the principles of
multiple use of lands and resources, and geothermal leases
shall, insofar as feasible, allow for coexistence ofother
leases of the same lands for deposits of minerals under the laws
applicable to them, for the location and production of claims under the
mining laws, and for other uses of the areas covered by them.
Operations under such other leases or for such other uses, however,
shall not unreasonably interfere with or endanger operations under any
lease issued pursuant to this Act, nor shall operations under leases so
issued unreasonably interfere with or endanger operations under any
lease, license, claim, or permit issued pursuant to the provisions of
any other Act.
[Sec. 18. For the purpose of properly conserving the
natural resources of any geothermal pool, field, or like area,
or any part thereof, lessees thereof and their representatives
may unite with each other, or jointly or separately with
others, in collectively adopting and operating under a
cooperative or unit plan of development or operation of such
pool, field, or like area, or any part thereof, whenever this
is determined and certified by the Secretary to be necessary or
advisable in the public interest. The Secretary may in his
discretion and with the consent of the holders of leases
involved, establish, alter, change, revoke, and make such
regulations with reference to such leases in connection with
the institution and operation of any such cooperative or unit
plan as he may deem necessary or proper to secure reasonable
protection of the public interest. He may include in geothermal
leases a provision requiring the lessee to operate under such a
reasonable cooperative or unit plan, and he may prescribe such
a plan under which such lessee shall operate, which shall
adequately protect the rights of all parties in interest,
including the United States. Any such plan may, in the
discretion of the Secretary, provide for vesting in the
Secretary or any other person, committee, or Federal or State
agency designated therein, authority to alter or modify from
time to time the rate of prospecting and development and the
quantity and rate of production under such plan. All leases
operated under any such plan approved or prescribed by the
Secretary shall be excepted in determining holdings or control
for the purposes of section 7 of this Act.
No more than five years after approval of any cooperative
or unit plan of development or operation, and at least every
five years thereafter, the Secretary shall review each such
plan and, after notice and opportunity for comment, eliminate
from inclusion in such plan any lease or part of a lease not
regarded as reasonably necessary to cooperative or unit
operations under the plan. In the case of a cooperative or unit
plan approved before the enactment of the Geothermal Steam Act
Amendments of 1988, the Secretary shall complete such review
and elimination within 5 years after the enactment of such Act.
Such elimination shall be based on scientific evidence, and
shall occur only when it is determined by the Secretary to be
for the purpose of conserving and properly managing the
geothermal resource. Any lease or part of a lease so eliminated
shall be eligible for an extension under subsection (c) or (g)
of section 6 if it separately meets the requirements for such
an extension.
When separate tracts cannot be independently developed and
operated in conformity with an established well-spacing or
development program, any lease, or a portion thereof, may be
pooled with other lands, whether or not owned by the United
States, under a communitization or drilling agreement providing
for an apportionment of production or royalties among the
separate tracts of land comprising the drilling or spacing unit
when determined by the Secretary to be in the public interest,
and operations or production pursuant to such an agreement
shall be deemed to be operations or production as to each lease
committed thereto.
The Secretary is hereby authorized, on such conditions as
he may prescribe, to approve operating, drilling, or
development contracts made by one or more lessees of geothermal
leases, with one or more persons, associations, or corporations
whenever, in his discretion, the conservation of natural
products or the public convenience or necessity may require or
the interests of the United States may be best served thereby.
All leases operated under such approved operating, drilling, or
development contracts, and interests thereunder, shall be
excepted in determining holdings or control under section 7 of
this Act.]
SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.
(a) Adoption of Units by Lessees.--
(1) In general.--For the purpose of more properly
conserving the natural resources of any geothermal
reservoir, field, or like area, or any part thereof
(whether or not any part of the geothermal reservoir,
field, or like area, is subject to any cooperative plan
of development or operation (referred to in this
section as a ``unit agreement'')), lessees thereof and
their representatives may unite with each other, or
jointly or separately with others, in collectively
adopting and operating under a unit agreement for the
reservoir, field, or like area, or any part thereof,
including direct use resources, if determined and
certified by the Secretary to be necessary or advisable
in the public interest.
(2) Majority interest of single leases.--A majority
interest of owners of any single lease shall have the
authority to commit the lease to a unit agreement.
(3) Initiative of secretary.--The Secretary may also
initiate the formation of a unit agreement, or require
an existing Federal lease to commit to a unit
agreement, if in the public interest.
(4) Modification of lease requirements by
secretary.--
(A) In general.--The Secretary may, in the
discretion of the Secretary and with the
consent of the holders of leases involved,
establish, alter, change, or revoke rates of
operations (including drilling, operations,
production, and other requirements) of the
leases and make conditions with respect to the
leases, with the consent of the lessees, in
connection with the creation and operation of
any such unit agreement as the Secretary may
consider necessary or advisable to secure the
protection of the public interest.
(B) Unlike terms or rates.--Leases with
unlike lease terms or royalty rates shall not
be required to be modified to be in the same
unit.
(b) Requirement of Plans Under New Leases.--The Secretary
may--
(1) provide that geothermal leases issued under this
Act shall contain a provision requiring the lessee to
operate under a unit agreement; and
(2) prescribe the unit agreement under which the
lessee shall operate, which shall adequately protect
the rights of all parties in interest, including the
United States.
(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any unit agreement
authorized by this section that applies to land owned by the
United States contain a provision under which authority is
vested in the Secretary, or any person, committee, or State or
Federal officer or agency as may be designated in the unit
agreement to alter or modify, from time to time, the rate of
prospecting and development and the quantity and rate of
production under the unit agreement.
(d) Exclusion From Determination of Holding or Control.--
Any land that is subject to a unit agreement approved or
prescribed by the Secretary under this section shall not be
considered in determining holdings or control under section 7.
(e) Pooling of Certain Land.--If separate tracts of land
cannot be independently developed and operated to use
geothermal steam and associated geothermal resources pursuant
to any section of this Act--
(1) the land, or a portion of the land, may be pooled
with other land, whether or not owned by the United
States, for purposes of development and operation under
a communitization agreement providing for an
apportionment of production or royalties among the
separate tracts of land comprising the production unit,
if the pooling is determined by the Secretary to be in
the public interest; and
(2) operation or production pursuant to the
communitization agreement shall be treated as operation
or production with respect to each tract of land that
is subject to the communitization agreement.
(f) Unit Agreement Review.--
(1) In general.--Not later than 5 years after the
date of approval of any unit agreement and at least
every 5 years thereafter, the Secretary shall--
(A) review each unit agreement; and
(B) after notice and opportunity for comment,
eliminate from inclusion in the unit agreement
any land that the Secretary determines is not
reasonably necessary for unit operations under
the unit agreement.
(2) Basis for elimination.--The elimination shall--
(A) be based on scientific evidence; and
(B) occur only if the elimination is
determined by the Secretary to be for the
purpose of conserving and properly managing the
geothermal resource.
(3) Extension.--Any land eliminated under this
subsection shall be eligible for an extension under
section 6(g) if the land meets the requirements for the
extension.
(g) Drilling or Development Contracts.--
(1) In general.--The Secretary may, on such
conditions as the Secretary may prescribe, approve
drilling or development contracts made by 1 or more
lessees of geothermal leases, with 1 or more persons,
associations, or corporations if, in the discretion of
the Secretary, the conservation of natural resources or
the public convenience or necessity may require or the
interests of the United States may be best served by
the approval.
(2) Holdings or control.--Each lease operated under
an approved drilling or development contract, and
interest under the contract, shall be excepted in
determining holdings or control under section 7.
(h) Coordination With State Governments.--The Secretary
shall coordinate unitization and pooling activities with
appropriate State agencies.
[Sec. 19. Upon]
SEC. 19. DATA FROM FEDERAL AGENCIES.
Upon request of the Secretary, other Federal departments
and agencies shall furnish him with any relevant data then in
their possession or knowledge concerning or having bearing upon
fair and adequate charges to be made for geothermal steam
produced or to be produced for conversion to electric power or
other purposes. Data given to any department or agency as
confidential under law shall not be furnished in any fashion
which identifies or tends to identify the business entity whose
activities are the subject of such data or the person or
persons who furnished such in information.
[Sec. 20. Subject]
SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM SALES, BONUSES,
ROYALTIES, AND RENTALS.
Subject to the provisions of section 35(b) of the Mineral
Leasing Act (30 U.S.C. 191(b)), all moneys received from the
sales, bonuses, royalties and rentals under the provisions of
this Act, including the payments referred to in section 6(i),
shall be disposed of in the same manner as such moneys received
pursuant to section 35 of the Mineral Leasing Act or pursuant
to section 6 of the Mineral Leasing Act for Acquired Lands, as
the case may be.
[Sec. 21. (a) Within one hundred and twenty days after the
effective date of this Act, the Secretary shall cause to be
published in the Federal Register a determination of all lands
which were included within any known geothermal resources area
on the effective date of the Act. He shall likewise publish in
the Federal Register from time to time his determination of
other known geothermal resources areas specifying in each case
the date the lands were included in such area; and
[(b) Geothermal]
SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL
RIGHTS.
Geothermal resources in lands the surface of which has
passed from Federal ownership but in which the minerals have
been reserved to the United States shall not be developed or
produced except under geothermal leases made pursuant to this
Act. If the Secretary of the Interior finds that such
development is imminent, or that production from a well
heretofore drilled on such lands in imminent, he shall so
report to the Attorney General, and the Attorney General is
authorized and directed to institute an appropriate proceeding
in the United States district court of the district in which
such lands are located, to quiet the title of the United States
in such resources, and if the court determines that the
reservation of minerals to the United States in the lands
involved included the geothermal resources, to enjoin their
production otherwise than under the terms of this Act:
Provided, That upon an authoritative judicial determination
thatFederal mineral reservation does not include [geothermal
steam and associated geothermal resources] geothermal resources the
duties of the Secretary of the Interior to report and of the Attorney
General to institute proceedings, as hereinbefore set forth, shall
cease.
[Sec. 22. Nothing]
SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.
Nothing in this Act shall constitute an express or implied
claim or denial on the part of the Federal Government as to its
exemption from State water laws.
[Sec. 23. (a) All]
SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.
(a) All leases under this Act shall be subject to the
condition that the lessee will, in conducting his exploration,
development and producing operations, use all reasonable
precautions to prevent waste of [geothermal steam and
associated geothermal resources] geothermal resources developed
in lands leased.
(b) Rights to develop and utilize [geothermal steam and
associated geothermal resources] geothermal resources
underlying lands owned by the United States may be acquired
solely in accordance with the provisions of this Act.
[Sec. 24. The]
SEC. 24. RULES AND REGULATIONS.
The Secretary shall prescribe such rules and regulations as
he may deem appropriate to carry out the provisions of this
Act. Such regulations may include, without limitation,
provisions for (a) the prevention of waste, (b) development and
conservation of geothermal and other natural resources, (c) the
protection of the public interest, (d) assignment, segregation,
extension of terms, relinquishment of leases, development
contracts, unitization, pooling, and drilling agreements, (e)
compensatory royalty agreements, suspension of operations or
production, and suspension or reduction of rentals or
royalties, (f) the filing of surety bonds to assure compliance
with the terms of the lease and to protect surface use and
resources, (g) use of the surface by a lessee of the lands
embraced in his lease, (h) the maintenance by the lessee of an
active development program, and (i) protection of water quality
and other environmental qualities.
[Sec. 25. As]
SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.
As to any land subject to geothermal leasing under section
3 of this Act, all laws which either (a) provide for the
disposal of land by patent or other form of conveyance or by
grant or by operation of law subject to a reservation of any
mineral or (b) prevent or restrict the disposal of such land
because of the mineral character of the land, shall hereafter
be deemed to embrace [geothermal steam and associated
geothermal resources] geothermal resources as a substance which
either must be reserved or must prevent or restrict the
disposal of such land, as the case may be. This section shall
not be construed to affect grants, patents, or other forms of
conveyances made prior to the date of enactment of this Act.
[Sec. 26. The]
SEC. 26. AMENDMENT.
The first two clauses in section 11 of the Act of August
13, 1954 (68 Stat. 708, 716), are amended to read as follows:
``As used in this Act, ``mineral leasing laws'' shall mean
the Act of February 25, 1920 (41 Stat. 437); the Act of April
17, 1926 (44 Stat. 301); the Act of February 7, 1927 (44 Stat.
1057); Geothermal Steam Act of 1970, and all Acts heretofore or
hereafter enacted which are amendatory of or supplementary to
any of the foregoing Acts; ``Leasing Act minerals'' shall mean
all minerals which, upon the effective date of this Act, are
provided in the mineral leasing laws to be disposed of
thereunder and all [geothermal steam and associated geothermal
resources] geothermal resources which, upon the effective date
of the Geothermal Steam Act of 1970, are provided in that Act
to be disposed of thereunder;''.
[Sec. 27. The]
SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.
The United States reserves the ownership of and the right
to extract under such rules and regulations as the Secretary
may prescribe oil, hydrocarbon gas, and helium from all
[geothermal steam and associated geothermal resources]
geothermal resources produced from lands leased under this Act
in accordance with presently applicable laws: Provided, That
whenever the right to extract oil, hydrocarbon gas, and helium
from [geothermal steam and associated geothermal resources]
geothermal resources produced from such lands is exercised
pursuant to this section, it shall be exercised so as to cause
no substantial interference with the production of [geothermal
steam and associated geothermal resources] geothermal resources
from such lands.
[Sec. 28. (a)(1) The]
SEC. 28. SIGNIFICANT THERMAL FEATURES.
(a)(1) The Secretary shall maintain a list of significant
thermal features, as defined in section 2(f), within units of
the National Park System, including but not limited to the
following units:
(A) Mount Rainier National Park.
* * * * * * *
(d) With respect to all leases or drilling permits issued,
extended, renewed or modified under this Act, the Secretary
shall include stipulations in such leases and permits necessary
to protect significant thermal features within units of the
National Park System where the Secretary determines that, based
on scientific evidence, the exploration, development or
utilization of the land subject to the lease or drilling permit
is reasonably likely to adversely affect any such significant
thermal feature. Stipulations shall include, but not be limited
to--
(1) requiring the lessee to reinject geothermal
fluids into the rock formations from which they
originate;
(2) requiring the lessee to report annually to the
Secretary on activities taken on the lease;
(3) requiring the lessee to continuously monitor
[geothermal steam and associated geothermal resources]
geothermal resources production and injection wells;
and
* * * * * * *
[Sec. 29. The]
SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.
The Secretary shall not issue any lease under this Act on
those lands subject to the prohibition provided under section
43 of the Mineral Leasing Act.
----------
FEDERAL POWER ACT--ACT OF JUNE 10, 1920, CHAPTER 285, AS AMENDED (16
U.S.C. 791A-825R)
PART I
* * * * * * *
Sec. 3. The words defined in this section shall have the
following meanings for the purpose of this Act, to wit:
* * * * * * *
(17)(A) * * *
[(C) ``qualifying small power production facility''
means a small power production facility--
(i) which the Commission determines, by rule,
meets such requirements (including requirements
respecting fuel use, fuel efficiency, and
reliability) as the Commission may, by rule,
prescribe; and
(ii) which is owned by a person not primarily
engaged in the generation or sale of electric
power (other than electric power solely from
cogeneration facilities or small power
production facilities);]
(C) ``qualifying small power production facility''
means a small power production facility that the
Commission determines, by rule, meets such requirements
(including requirements respecting fuel use, fuel
efficiency, and reliability) as the Commission may, by
rule, prescribe;
* * * * * * *
(18)(A) ``cogeneration facility'' means a facility
which produces--
(i) electric energy, and
(ii) steam or forms of useful energy (such as
heat) which are used for industrial,
commercial, heating, or cooling purposes;
[(B) ``qualifying cogeneration facility'' means a
cogeneration facility which--
(i) the Commission determines, by rule, meets
such requirements (including requirements
respecting minimum size, fuel use, and fuel
efficiency) as the Commission may, by rule,
prescribe; and
(ii) is owned by a person not primarily
engaged in the generation or sale of electric
power (other than electric power solely from
cogeneration facilities or small power
production facilities);
(B) ``qualifying cogeneration facility'' means a
cogeneration facility that the Commission determines,
by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and
fuel efficiency) as the Commission may, by rule,
prescribe;]
* * * * * * *
[(22) ``electric utility'' means any person or State
agency (including any municipality) which sells
electric energy; such term includes the Tennessee
Valley Authority, but does not include any Federal
power marketing agency.]
[(23) Transmitting utility.--The term ``transmitting
utility'' means any electric utility, qualifying
cogeneration facility, qualifying small power
production facility, or Federal power marketing agency
which owns or operates electric power transmission
facilities which are used for the sale of electric
energy at wholesale.]
(22) Electric utility.--(A) The term ``electric
utility'' means a person or Federal or State agency
(including an entity described in section 201(f)) that
sells electric energy.
(B) The term ``electric utility'' includes the
Tennessee Valley Authority and each Federal power
marketing administration.
(23) Transmitting utility.--The term ``transmitting
utility'' means an entity (including an entity
described in section 201(f)) that owns, operates, or
controls facilities used for the transmission of
electric energy--
(A) in interstate commerce;
(B) for the sale of electric energy at
wholesale.
* * * * * * *
(26) Electric cooperative.--The term ``electric
cooperative'' means a cooperatively owned electric
utility.
(27) RTO.--The term ``Regional Transmission
Organization'' or ``RTO'' means an entity of sufficient
regional scope approved by the Commission--
(A) to exercise operational or functional
control of facilities used for thetransmission
of electric energy in interstate commerce; and
(B) to ensure nondiscriminatory access to the
facilities.
(28) ISO.--The term ``Independent System Operator''
or ``ISO'' means an entity approved by the Commission--
(A) to exercise operational or functional
control of facilities used for the transmission
of electric energy in interstate commerce; and
(B) to ensure nondiscriminatory access to the
facilities.
(29) Transmission organization.--The term
``Transmission Organization'' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other
transmission organization finally approved by the
Commission for the operation of transmission
facilities.
* * * * * * *
Sec. 4. * * *
(e) To issue licenses to citizens of the United States, or
to any association of such citizens, or to any corporation
organized under the laws of the United States or any State
thereof, or to any State or municipality for the purpose of
constructing, operating, and maintaining dams, water conduits,
reservoirs, power houses, transmission lines, or other project
works necessary or convenient for the development and
improvement of navigation and for the development,
transmission, and utilization of power across, along, from or
in any of the streams or other bodies of water over which
Congress has jurisdiction under its authority to regulate
commerce with foreign nations and among the several States, or
upon any part of the public lands and reservations of the
United States (including the Territories), or for the purpose
of utilizing the surplus water or water power from any
Government dam, except as herein provided: Provided, That
licenses shall be issued within any reservation only after a
finding by the Commission that the license will not interfere
or be inconsistent with the purpose for which such reservation
was created or acquired, and shall be subject to and contain
such conditions as the Secretary of the department under whose
supervision such reservation falls shall deem necessary for the
adequate protection and utilization of such reservation. The
license applicant and any party to the proceeding shall be
entitled to a determination on the record, after opportunity
for an agency trial-type hearing of no more than 90 days, on
any disputed issues of material fact with respect to such
conditions. All disputed issues of material fact raised by any
party shall be determined in a single trial-type hearing to be
conducted within a time frame established by the Commission for
each license proceeding. Within 90 days of the date of
enactment of this Act, the Secretaries of the Interior,
Commerce, and Agriculture shall establish jointly, by rule, the
procedures for such expedited trial-type hearing, including the
opportunity to undertake discovery and cross-examine witnesses,
in consultation with the Federal Energy Regulatory Commission.
Provided further, That no license affecting the navigable
capacity of any navigable waters of the United States shall be
issued until the plans of the dam or other structures affecting
navigation have been approved by the Chief of Engineers and the
Secretary of the Army.
* * * * * * *
Sec. 18. The Commission shall require the construction,
maintenance, and operation by a licensee at its own expense of
such lights and signals as may be directed by the Secretary of
the Department in which the Coast Guard is operating, and such
fishways as may be prescribed by the Secretary of the Interior
or the Secretary of Commerce. The license applicant and any
party to the proceeding shall be entitled to a determination on
the record, after opportunity for an agency trial-type hearing
of no more than 90 days, on any disputed issues of material
fact with respect to such fishways. All disputed issues of
material fact raised by any party shall be determined in a
single trial-type hearing to be conducted within a time frame
established by the Commission for each license proceeding.
Within 90 days of the date of enactment of this Act, the
Secretaries of the Interior, Commerce, and Agriculture shall
establish jointly, by rule, the procedures for such expedited
trial-type hearing, including the opportunity to undertake
discovery and cross-examine witnesses, in consultation with the
Federal Energy Regulatory Commission. The operation of any
navigation facilities which may be constructed as a part of or
in connection with any dam or diversion structure built under
the provisions of this Act, whether at the expense of a
licensee hereunder or of the United States, shall at all times
be controlled by such reasonable rules and regulations in the
interest of navigation, including the control of the level of
the pool caused by such dam or diversion structure as may be
made from time to time by the Secretary of the Army, and for
willful failure to comply with any such rule or regulation such
licensee shall be deemed guilty of a misdemeanor, and upon
conviction thereof shall be punished as provided in section 316
hereof.
* * * * * * *
SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.
Sec. (a). * * *
(3)(C) except as provided in subsection (j),
conditions for the protection, mitigation, and
enhancement of fish and wildlife based on
recommendations received pursuant to the Fish and
Wildlife Coordination Act (16 U.S.C. 661 et seq.) from
the National Marine Fisheries Service, the United Sates
Fish and Wildlife Service, and State fish and wildlife
agencies.
* * * * * * *
(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. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.
(a) Alternative Conditions--
(1) Whenever any person applies for a license for any
project works within any reservation of the United
States, and the Secretary of the department under whose
supervision such reservation falls (referred to in this
subsection as ``the Secretary'') deems a condition to
such license to be necessary under the first proviso of
section 4(e), the license applicant or any other party
to the license proceeding may propose an alternative
condition.
(2) Notwithstanding the first proviso of section
4(e), the Secretary shall accept the proposed
alternative condition referred to in paragraph (1), and
the Commission shall include in the license such
alternative condition, if the Secretary determines,
based on substantial evidence provided by the license
applicant, any other party to the proceeding, or
otherwise available to the Secretary, that such
alternative condition--
(A) provides for the adequate protection and
utilization of the reservation; and
(B) the Secretary concurs with the license
applicant's judgment that the alternative
condition will either--
(i) cost significantly less to
implement; or
(ii) result in improved operation of
the project works for electricity
production, as compared to the
condition initially deemed necessary by
the Secretary.
(3) The Secretary concerned shall submit into the
public record of the Commission proceeding with any
condition under section 4(e) or alternative condition
it accepts under this section, a written statement
explaining the basis for such condition, and reason for
not accepting any alternative condition under this
section. The written statement must demonstrate that
the Secretary gave equal consideration to the effects
of the condition adopted and alternatives not accepted
on energy supply, distribution, cost, and use; flood
control; navigation; water supply; and air quality (in
addition to the preservation of other aspects of
environmental quality); based on such information as
may be available to the Secretary, including
information voluntarily provided in a timely manner by
the applicant and others. The Secretary shall also
submit, together with the aforementioned written
statement, all studies, data, and other factual
information available to the Secretary and relevant to
the Secretary's decision.
(4) If the Secretary does not accept an applicant's
alternative condition under this section, and the
Commission finds that the Secretary's condition would
be inconsistent with the purposes of this part, or
other applicable law, the Commission may refer the
dispute to the Commission's Dispute Resolution Service.
The Dispute Resolution Service shall consult with the
Secretary and the Commission and issue a non-binding
advisory within 90 days. The Secretary may accept the
Dispute Resolution Service advisory unless the
Secretary finds that the recommendation will not
adequately protect the reservation. The Secretary shall
submit the advisory and the Secretary's final written
determination into the record of the Commission's
proceeding.
(b) Alternative Prescriptions--
(1) Whenever the Secretary of the Interior or the
Secretary of Commerce prescribes a fishway under
section 18, the license applicant or any other party to
the proceeding may propose an alternative to such
prescription to construct, maintain, or operate a
fishway.
(2) Notwithstanding section 18, the Secretary of the
Interior or the Secretary of Commerce, as appropriate,
shall accept and prescribe, and the Commission shall
require, the proposed alternative referred to in
paragraph (1), if the Secretary of the appropriate
department determines, based on substantial evidence
provided by the license applicant, any other party to
the proceeding, or otherwise available to the
Secretary, that such alternative--
(A) will be no less protective than the
fishway initially prescribed by the Secretary;
and
(B) the Secretary concurs with the license
applicant's judgment that the alternative
prescription will either--
(i) cost significantly less to
implement; or
(ii) result in improved operation of
the project works for electricity
production, as compared to the fishway
initially deemed necessary by the
Secretary.
(3) The Secretary concerned shall submit into the
public record of the Commission proceeding with any
prescription under section 18 or alternative
prescription it accepts under this section, a written
statement explaining the basis for such prescription,
and reason for not accepting any alternative
prescription under this section. The written statement
mustdemonstrate that the Secretary gave equal
consideration to the effects of the prescription adopted and
alternatives not accepted on energy supply, distribution, cost, and
use; flood control; navigation; water supply; and air quality (in
addition to the preservation of other aspects of environmental
quality); based on such information as may be available to the
Secretary, including information voluntarily provided in a timely
manner by the applicant and others. The Secretary shall also submit,
together with the aforementioned written statement, all studies, data,
and other factual information available to the Secretary and relevant
to the Secretary's decision.
(4) If the Secretary concerned does not accept an
applicant's alternative prescription under this
section, and the Commission finds that the Secretary's
prescription would be inconsistent with the purposes of
this part, or other applicable law, the Commission may
refer the dispute to the Commission's Dispute
Resolution Service. The Dispute Resolution Service
shall consult with the Secretary and the Commission and
issue a non-binding advisory within 90 days. The
Secretary may accept the Dispute Resolution Service
advisory unless the Secretary finds that the
recommendation will not adequately protect the fish
resources. The Secretary shall submit the advisory and
the Secretary's final written determination into the
record of the Commission's proceeding.
* * * * * * *
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE
COMMERCE
DECLARATION OF POLICY; APPLICATION OF PART; DEFINITIONS
Section 201. * * *
(b) * * *
(2) [The] Notwithstanding section 201(f), the
provisions of sections [210, 211, and 212] 203(a)(2),
206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 219,
220, 221, 222, and 223 of this title shall apply to the
entities described in such provisions, and such
entities shall be subject to the jurisdiction of the
Commission for purposes of carrying out such provisions
and for purposes of applying the enforcement
authorities of this chapter with respect to such
provisions. Compliance with any order or rule of the
Commission under the provisions of sections [210 or
211] 203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216,
217, 218, 219, 220, 221, 222, and 223 of this title,
shall not make an electric utility or other entity
subject to the jurisdiction of the Commission for any
purposes other than the purposes specified in the
preceding sentence.
* * * * * * *
(e) The term ``public utility'' when used in this
subchapter and subchapter III of this chapter means any person
who owns or operates facilities subject to the jurisdiction of
the Commission under this subchapter (other than facilities
subject to such jurisdiction solely by reason of section [210,
211, or 212] 206(e), 206(f), 210, 211, 211A, 212, 215, 216,
217, 218, 219, 220, 221, 222, or 223 of this title).
(f) No provision in this subchapter shall apply to, or be
deemed to include, the United States, a State or any [political
subdivision of a State] political subdivision of a State, an
electric cooperative that receives financing under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.) or sells
less than 4,000,000 megawatt hours of electricity per year, or
any agency, authority, or instrumentality of any one or more of
the foregoing, or any corporation which is wholly owned,
directly or indirectly, by any one or more of the foregoing, or
any officer, agent, or employee of any of the foregoing acting
as such in the course of his official duty, unless such
provision makes specific reference thereto.
(g) * * *
(5) As used in this subsection the terms affiliate,
associate company, electric utility company, holding
company, subsidiary company, and exempt wholesale
generator shall have the same meaning as when used in
the Public Utility Holding Company Act of [1935] 2005.
* * * * * * *
DISPOSITION OF PROPERTY; CONSOLIDATION; PURCHASE OF SECURITIES
[Sec. 203. (a) No public utility shall sell, lease, or
otherwise dispose of the whole of its facilities subject to the
jurisdiction of the Commission, or any part thereof of a value
in excess of $50,000, or by any means whatsoever, directly or
indirectly, merge or consolidate such facilities or any part
thereof with those of any other person, or purchase, acquire,
or take any security of any other public utility, without first
having secured an order of the Commission authorizing it to do
so. Upon application for such approval the Commission shall
give reasonable notice in writing to the Governor and State
commission of each of the States in which the physical property
affected, or any part thereof, is situated, and to such other
persons as it may deem advisable. After notice and opportunity
for hearing, if the Commission finds that the proposed
disposition, consolidation, acquisition, or control will be
consistent with the public interest, it shall approve the
same.]
(a)(1) No public utility shall, without first having
secured an order of the Commission authorizing it to do so--
(A) sell, lease, or otherwise dispose of the whole of
its facilities subject to the jurisdiction of the
Commission, or any part thereof of a value in excess of
$10,000,000;
(B) merge or consolidate, directly or indirectly,
such facilities or any part thereof with those of any
other person, by any means whatsoever;
(C) purchase, acquire, or take any security with a
value in excess of $10,000,000 of any other public
utility; or
(D) purchase, lease, or otherwise acquire an existing
generation facility--
(i) that has a value in excess of
$10,000,000; and
(ii) that is used for interstate wholesale
sales and over which the Commission has
jurisdiction for ratemaking purposes.
(2) No holding company in a holding company system
that includes a transmitting utility or an electric
utility shall purchase, acquire, or take any security
with a value in excess of $10,000,000 of, or, by any
means whatsoever, directly or indirectly, merge or
consolidate with, a transmitting utility, an electric
utility company, or a gas utility company, or a holding
company in a holding company system that includes a
transmitting utility, an electric utility company, or a
gas utility company with a value in excess of
$10,000,000 without first having secured an order of
the Commission authorizing it to do so.
(3) Upon receipt of an application for such approval
the Commission shall give reasonable notice in writing
to the Governor and State commission of each of the
States in which the physical property affected, or any
part thereof, is situated, and to such other persons as
it may deem advisable.
(4) After notice and opportunity for hearing, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it
finds that the proposed transaction--
(A) will be consistent with the public
interest, taking into account the effect of the
transaction on competition in the electricity
markets, electric rates, and effective
regulation; and
(B) shall not result in cross-subsidization
of a non-utility associate company or the
pledge or encumbrance of utility assets for the
benefit of an associate company, unless the
Commission determines that the cross-
subsidization, pledge, or encumbrance would not
be harmful.
(5) The Commission shall, by rule, adopt procedures
for the expeditious consideration of applications for
the approval of dispositions, consolidations, or
acquisitions, under this section. Such rules shall
identify classes of transactions, or specify criteria
for transactions, that normally meet the standards
established in paragraph (4). The Commission shall
provide expedited review for such transactions. The
Commission shall grant or deny any other application
for approval of a transaction not later than 180 days
after the application is filed. If the Commission does
not act within 180 days, such application shall be
deemed granted unless the Commission finds, based on
good cause, that further consideration is required to
determine whether the proposed transaction meets the
standards of paragraph (4) and issues an order tolling
the time for acting on the application for not more
than 180 days, at the end of which additional period
the Commission shall grant or deny the application.
(6) For purposes of this subsection, the terms
associate company, holding company, and holding company
system have the meaning given those terms in the Public
Utility Holding Company Act of 2005.
* * * * * * *
FIXING RATES AND CHARGES; DETERMINATION OF COST OF PRODUCTION OR
TRANSPORTATION
Sec. 206. (a) Whenever the Commission, after a [hearing
had] hearing held * * *
(b) Whenever the Commission institutes a proceeding under
this section, the Commission shall establish a refund effective
date. In the case of a proceeding instituted on complaint, the
refund effective date shall not be earlier than [the date 60
days after the filing of such complaint nor later than 5 months
after the expiration of such 60-day period] the date of the
filing of such complaint nor later than 5 months after the
filing of such complaint. In the case of a proceeding
instituted by the Commission on its own motion, the refund
effective date shall not be earlier than the date [60 days
after] of the publication by the Commission of notice of its
intention to initiate such proceeding nor later than 5 months
after the [expiration of such 60-day period] publication date.
Upon institution of a proceeding under this section, the
Commission shall give to the decision of such proceeding the
same preference as provided under section 205 of this Act and
otherwise act as speedily as possible. [If no final decision is
rendered by the refund effective date or by the conclusion of
the 180-day period commencing upon initiation of a proceeding
pursuant to this section, whichever is earlier, the Commission
shall state the reasons why it has failed to do so and shall
state its best estimate as to when it reasonably expects to
make such decision.] If no final decision is rendered by the
conclusion of the 180-day period commencing upon initiation of
a proceeding pursuant to this section, the Commission shall
state the reasons why it has failed to do so and shall state
its best estimate as to when it reasonably expects to make such
decision. In any proceeding under this section, the burden of
proof to show that any rate, charge, classification, rule,
regulation, practice, or contract is unjust, unreasonable,
unduly discriminatory, or preferential shall be upon the
Commission or the complainant. At the conclusion of any
proceeding under this section, the Commission may order [the
public utility to make] refunds of any amounts paid, for the
period subsequent to the refund * * *
* * * * * * *
(e)(1) In this subsection:
(A) The term ``short-term sale'' means an agreement
for the sale of electric energy at wholesale in
interstate commerce that is for a period of 48 hours or
less.
(B) The term ``applicable Commission rule'' means a
Commission rule applicable to sales at wholesale by
public utilities that the Commission determines after
notice and comment should also be applicable to
entities subject to this subsection.
(2) If an entity described in section 201(f) voluntarily
makes a short-term sale of electric energy through an organized
market in which the rates for the sale are established by
Commission-approved tariff (rather than by contract) and the
sale violates the terms of the tariff or applicable Commission
rules in effect at the time of the sale, the entity shall be
subject to the refund authority of the Commission under this
section with respect to the violation.
(3) This section shall not apply to--
(A) any entity that sells in total (including
affiliates of the entity) less than 8,000,000 megawatt
hours of electricity per year; or
(B) any electric cooperative.
(4)(A) The Commission shall have refund authority under
paragraph (2) with respect to a voluntary short-term sale of
electric energy by the Bonneville Power Administration only if
the sale is at an unjust and unreasonable rate.
(B) The Commission may order a refund under subparagraph
(A) only for short-term sales made by the Bonneville Power
Administration at rates that are higher than the highest just
and reasonable rate charged by any other entity for a short-
term sale of electric energy in the same geographic market for
the same, or most nearly comparable, period as the sale by the
Bonneville Power Administration.
(5) In the case of any Federal power marketing agency or
the Tennessee Valley Authority, the Commission shall not assert
or exercise any regulatory authority or power under paragraph
(2) other than the ordering of refunds to achieve a just and
reasonable rate.
* * * * * * *
CERTAIN WHEELING AUTHORITY
Sec. 211. (a) * * *
(c)[(2)] No order may be issued under subsection (a) or (b)
which requires the transmitting utility subject to the order to
transmit, during any period, an amount of electric energy which
replaces any amount of electric energy--
[(A)] (1) required to be provided to such applicant
pursuant to a contract during such period, or
[(B)] (2) currently provided to the applicant by the
utility subject to the order pursuant to a rate
schedule on file during such period with the
Commission: Provided, That nothing in this subparagraph
shall prevent an application for an order hereunder to
be filed prior to [termination of modification]
termination or modification of an existing rate
schedule: Provided, That such order shall not become
effective until termination of such rate schedule or
the modification becomes effective.
(d)(1) Any transmitting utility ordered under subsection
(a) or (b) to provide transmission services may apply to the
Commission for an order permitting such transmitting utility to
cease providing all, or any portion of, such services. After
public notice, notice to each affected State regulatory
authority, each affected Federal power marketing agency, each
affected transmitting utility, and each affected electric
utility, and after an opportunity for an evidentiary hearing,
the Commission shall issue an order terminating or modifying
the order issued under subsection (a) or (b), if the [electric
utility] transmitting utility providing such transmission
services has demonstrated, and the Commission has found, that--
(A) due to changed circumstances, the requirements
applicable, under this section and section 212, to the
issuance of an order under subsection (a) or (b) are no
longer met, or
(B) any transmission capacity of the utility
providing transmission services under such order which
was, at the time such order was issued, in excess of
the capacity necessary to serve its own customers is no
longer in excess of the capacity necessary for such
purposes, or
(C) the ordered transmission services require
enlargement of transmission capacity and the
transmitting utility subject to the order has failed,
after making a good faith effort, to obtain the
necessary approvals or property rights under applicable
Federal, State, and local laws.
No order shall be issued under this subsection pursuant to a
finding under subparagraph (A) unless the Commission finds that
such order is in the public interest.
* * * * * * *
SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES.
(a) Definition of Unregulated Transmitting Utility.--In
this section, the term ``unregulated transmitting utility''
means an entity that--
(1) owns or operates facilities used for the
transmission of electric energy in interstate commerce;
and
(2) is an entity described in section 201(f).
(b) Transmission Preperation Improvements.--Subject to
section 212(h), the Commission may, by rule or order, require
an unregulated transmitting utility to provide transmission
services--
(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
(2) on terms and conditions (not relating to rates)
that are comparable to those under which such
unregulated transmitting utility provides transmission
services to itself and that are not unduly
discriminatory or preferential.
(C) Exemption.--The Commission shall exempt
from any rule or order under this subsection
any unregulated transmitting utility that--
(1) sells not more than 4,000,000 megawatt hours of
electricity per year;
(2) does not own or operate any transmission
facilities that are necessary for operating an
interconnected transmission system (or any portion of
the system); or
(3) meets other criteria the Commission determines to
be in the public interest.
(d) Local Distribution Facilities.--The requirements of
subsection (b) shall not apply to facilities used in local
distribution.
(e) Exemption Termination.--If the Commission, after an
evidentiary hearing held on a complaint and after giving
consideration to reliability standards established under
section 215, finds on the basis of a preponderance of the
evidence that any exemption granted pursuant to subsection (c)
unreasonably impairs the continued reliability of an
interconnected transmission system, the Commission shall revoke
the exemption granted to the transmitting utility.
(f) Application to Unregulated Transmitting Utilties.--The
rate changing procedures applicable to public utilities under
subsections (c) and (d) of section 205 are applicable to
unregulated transmitting utilities for purposes of this
section.
(g) Remand.--In exercising its authority under subsection
(b)(1), the Commission may remand transmission rates to an
unregulated transmitting utility for review and revision where
necessary to meet the requirements of subsection (b).
(h) Other Requests.--The provision of transmission services
under subsection (a) does not preclude a request for
transmission services under section 211.
(i) Limitation.--The Commission may not require a State or
municipality to take action under this section that would
violate a private activity bond rule for purposes of section
141 of the Internal Revenue Code of 1986.
(j) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require an
unregulated transmitting utility to transfer control or
operational control of its transmitting facilities to a
Transmission Organization that is designated to provide non-
discriminatory transmission access.
* * * * * * *
SEC. 214. SALES BY EXEMPT WHOLESALE GENERATORS.
No rate or charge received by an exempt wholesale generator
for the sale of electric energy shall be lawful under section
824d of this title if, after notice and opportunity for
hearing, the Commission finds that such rate or charge results
from the receipt of any undue preference or advantage from an
electric utility which is an associate company or an affiliate
of the exempt wholesale generator. For purposes of this
section, the terms associate company and affiliate shall have
the same meaning as provided in section 2(a) of the Public
Utility Holding Company Act of [1935] 2005.
SEC. 215. ELECTRIC RELIABILITY.
(a) Definitions.--In this section:
(1)(A) The term ``bulk-power system'' means--
(i) facilities and control systems necessary
for operating an interconnected electric energy
transmission network (or any portion of such a
network); and
(ii) electric energy from generation
facilities needed to maintain transmission
system reliability.
(B) The term ``bulk-power system'' does not include
facilities used in the local distribution of electric
energy.
(2) The terms ``Electric Reliability Organization''
and ``ERO'' mean the organization certified by the
Commission under subsection (c) the purpose of which is
to establish and enforce reliability standards for the
bulk-power system, subject to review by the Commission.
(3)(A) The term ``reliability standard'' means a
requirement, approved by the Commission under this
section, to provide for reliable operation of the bulk-
power system.
(B) The term ``reliability standard'' includes
requirements for the operation of existing bulk-power
system components and the design of planned additions
or modifications to those components to the extent
necessary to provide for reliable operation of the
bulk-power system, except that the term does not
include any requirement to enlarge those components or
to construct new transmission capacity or generation
capacity.
(4) The term ``reliable operation'' means operating
the components of the bulk-power system within
equipment and electric system thermal, voltage, and
stability limits so that instability, uncontrolled
separation, or cascading failures of the systemwill not
occur as a result of a sudden disturbance or unanticipated failure of
system components.
(5) The term ``interconnection'' means a geographic
area in which the operation of bulk-power system
components is synchronized such that the failure of 1
or more of the components may adversely affect the
ability of the operators of other components within the
system to maintain reliable operation of the portion of
the system within their control.
(6) The term ``regional entity'' means an entity
having enforcement authority pursuant to subsection
(e)(4).
(b) Jurisdiction and Applicability.--(1) The Commission shall
have jurisdiction, within the United States, over the ERO
certified by the Commission under subsection (c), any regional
entities, and all users, owners and operators of the bulk-power
system (including the entities described in section 201(f)),
for purposes of approving reliability standards established
under this section and enforcing compliance with this section.
(2) All users, owners, and operators of the bulk-power system
shall comply with reliability standards that take effect under
this section.
(3) The Commission shall issue a final rule to implement the
requirements of this section not later than 180 days after the
date of enactment of this section.
(c) Certification.--(1) Following the issuance of a
Commission rule under subsection (b)(3), any person may submit
an application to the Commission for certification as the
Electric Reliability Organization.
(2) The Commission may certify 1 such ERO if the Commission
determines that the ERO--
(A) has the ability to develop and enforce, subject
to subsection (e)(2), reliability standards that
provide for an adequate level of reliability of the
bulk-power system; and
(B) has established rules that--
(i) ensure the independence of the ERO from
the users and owners and operators of the bulk-
power system, while ensuring fair stakeholder
representation in the selection of the
directors of the ERO and balanced
decisionmaking in any ERO committee or
subordinate organizational structure;
(ii) allocate equitably reasonable dues,
fees, and other charges among end users for all
activities under this section;
(iii) provide fair and impartial procedures
for enforcement of reliability standards
through the imposition of penalties in
accordance with subsection (e) (including
limitations on activities, functions, or
operations, or other appropriate sanctions);
(iv) provide for reasonable notice and
opportunity for public comment, due process,
openness, and balance of interests in
developing reliability standards and otherwise
exercising the duties of the ERO; and
(v) provide for taking, after certification,
appropriate steps to gain recognition in Canada
and Mexico.
(d) Reliability Standards.--(1) The ERO shall file each
reliability standard or modification to a reliability standard
that the ERO proposes to be made effective under this section
with the Commission.
(2)(A) The Commission may approve, by rule or order, a
proposed reliability standard or modification to a reliability
standard if the Commission determines that the standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest.
(B) The Commission--
(i) shall give due weight to the technical expertise
of the ERO with respect to the content of a proposed
standard or modification to a reliability standard and
to the technical expertise of a regional entity
organized on an interconnection-wide basis with respect
to a reliability standard to be applicable within that
interconnection; but
(ii) shall not defer with respect to the effect of a
standard on competition.
(C) A proposed standard or modification shall take effect
on approval by the Commission.
(3) The ERO shall rebuttably presume that a proposal from a
regional entity organized on an interconnection-wide basis for
a reliability standard or modification to a reliability
standard to be applicable on an interconnection-wide basis is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest.
(4) The Commission shall remand to the ERO for further
consideration a proposed reliability standard or a modification
to a reliability standard that the Commission disapproves in
whole or in part.
(5) The Commission, on a motion of the Commission or on
complaint, may order the ERO to submit to the Commission a
proposed reliability standard or a modification to a
reliability standard that addresses a specific matter if the
Commission considers such a new or modified reliability
standard appropriate to carry out this section.
(6)(A) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or agreement
accepted, approved, or ordered by the Commission applicable to
a transmission organization.
(B) The transmission organization shall continue to comply
with such function, rule, order, tariff, rate schedule or
agreement accepted approved, or ordered by the Commission
until--
(i) the Commission finds a conflict exists between a
reliability standard and any such provision;
(ii) the Commission orders a change to the provision
pursuant to section 206; and
(iii) the ordered change becomes effective under this
part.
(C) If the Commission determines that a reliability
standard needs to be changed as a result of such a conflict,
the Commission shall order the ERO to develop and file with the
Commission a modified reliability standard under paragraph (4)
or (5).
(e) Enforcement.--(1) Subject to paragraph (2), the ERO may
impose a penalty on a user or owner or operator of the bulk-
power system for a violation of a reliability standard approved
by the Commission under subsection (d) if the ERO, after notice
and an opportunity for a hearing--
(A) finds that the user or owner or operator has
violated a reliability standard approved by the
Commission under subsection (d); and
(B) files notice and the record of the proceeding
with the Commission.
(2)(A) A penalty imposed under paragraph (1) may take
effect not earlier than the day that is 31 days after the date
on which the ERO files with the Commission notice of the
penalty and the record of proceedings.
(B) The penalty shall be subject to review by the
Commission on--
(i) a motion by the Commission; or
(ii) application by the user, owner or operator that
is the subject of the penalty filed not later than 30
days after the date on which the notice is filed with
the Commission.
(C) Application to the Commission for review, or the
initiation of review by the Commission on a motion of the
Commission, shall not operate as a stay of the penalty unless
the Commission orders otherwise on a motion of the Commission
or on application by the user, owner or operator that is the
subject of the penalty.
(D) In any proceeding to review a penalty imposed under
paragraph (1), the Commission, after notice and opportunity for
hearing (which hearing may consist solely of the record before
the ERO and opportunity for the presentation of supporting
reasons to--
(i) affirm, modify, or set aside the penalty), shall
by order affirm, set aside, reinstate, or modify the
penalty; and
(ii) if appropriate, remand to the ERO for further
proceedings.
(E) The Commission shall implement expedited procedures for
the hearings described in subparagraph (D).
(3) On a motion of the Commission or on complaint, the
Commission may order compliance with a reliability standard and
may impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any act or practice that constitutes or will constitute a
violation of a reliability standard.
(4)(A) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards under
paragraph (1) if--
(i) the regional entity is governed by--
(I) an independent board;
(II) a balanced stakeholder board; or
(III) a combination independent and balanced
stakeholder board;
(ii) the regional entity otherwise meets the
requirements of paragraphs (1) and (2) of subsection
(c); and
(iii) the agreement promotes effective and efficient
administration of bulk-power system reliability.
(B) The Commission may modify a delegation under this
paragraph.
(C) The ERO and the Commission shall rebuttably presume
that a proposal for delegation to a regional entity organized
on an interconnection-wide basis promotes effective and
efficient administration of bulk-power system reliability and
should be approved.
(D) The regulation issued under this paragraph may provide
that the Commission may assign the authority of the ERO to
enforce reliability standards under paragraph (1) directly to a
regional entity in accordance with this paragraph.
(5) The Commission may take such action as is necessary or
appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission order
affecting the ERO or a regional entity.
(6) Any penalty imposed under this section shall--
(A) bear a reasonable relation to the seriousness of
the violation; and
(B) take into consideration the efforts of the user,
owner, or operator to remedy the violation in a timely
manner.
(f) Changes in Electric Reliability Organization Rules.--
(1) The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of the basis and purpose
of the rule and proposed rule change.
(2) The Commission, upon a motion of the Commission or upon
complaint, may propose a change to the rules of the ERO.
(3) A proposed rule or proposed rule change shall take
effect upon a finding by the Commission, after notice and
opportunity for comment, that the change is just, reasonable,
and not unduly discriminatory or preferential, is in the public
interest, and meets the requirements of subsection (c).
(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
(h) Coordination With Canada and Mexico.--The President is
urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness of
the ERO in the United States and Canada or Mexico.
(i) Savings Provisions.--(1) The ERO may develop and
enforce compliance with reliability standards for only the
bulk-power system.
(2) Nothing in this section authorizes the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance with
standards for adequacy or safety of electric facilities or
services.
(3) Nothing in this section preempts any authority of any
State to take action to ensure the safety, adequacy, and
reliability of electric service within that State, as long as
the action is not inconsistent with any reliability standard.
(4) Not later than 90 days after the date of application of
the Electric Reliability Organization or other affected party,
and after notice and opportunity for comment, the Commission
shall issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
(5) The Commission, after consultation with the ERO and the
State taking action, may stay the effectiveness of any State
action, pending the issuance by the Commission of a final
order.
(j) Regional Advisory Bodies.--(1) The Commission shall
establish a regional advisory body on the petition of at least
\2/3\ of the States within a region that have more than \1/2\
of the electric load of the States served within the region.
(2) A regional advisory body--
(A) shall be composed of 1 member from each
participating State in the region, appointed by the
Governor of the State; and
(B) may include representatives of agencies, States,
and provinces outside the United States.
(3) A regional advisory body may provide advice to the
Electric Reliability Organization, a regional entity, or the
Commission regarding--
(A) the governance of an existing or proposed
regional entity within the same region;
(B) whether a standard proposed to apply within the
region is just, reasonable, not unduly discriminatory
or preferential, and in the public interest;
(C) whether fees proposed to be assessed within the
region are just, reasonable, not unduly discriminatory
or preferential, and in the public interest; and
(D) any other responsibilities requested by the
Commission.
(4) The Commission may give deference to the advice of a
regional advisory body if that body is organized on an
interconnection-wide basis.
(k) Alaska and Hawaii.--This section does not apply to
Alaska or Hawaii.
(l) Status of ERO.--The Electric Reliability Organization
certified by the Commission under section 215(c) of the Federal
Power Act (as added by subsection (a)) and any regional entity
delegated enforcement authority pursuant to section 215(e)(4)
of that Act (as so added) are not departments, agencies, or
instrumentalities of the Federal Government.
SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
(a) Designation of National Interest Electric Transmission
Corridors.--(1) Not later than 1 year after the date of
enactment of this section and every 3 years thereafter, the
Secretary of Energy (referred to in this section as the
``Secretary''), in consultation with affected States, shall
conduct a study of electric transmission congestion.
(2) After considering alternatives and recommendations from
interested parties (including an opportunity for comment from
affected States), the Secretary shall issue a report, based on
the study, which may designate any geographic area experiencing
electric energy transmission capacity constraints or congestion
that adversely affects consumers as a national interest
electric transmission corridor.
(3) The Secretary shall conduct the study and issue the
report in consultation with any appropriate regional entity
referred to in section 215.
(4) In determining whether to designate a national interest
electric transmission corridor under paragraph (2), the
Secretary may consider whether--
(A) the economic vitality and development of the
corridor, or the end markets served by the corridor,
may be constrained by lack of adequate or reasonably
priced electricity;
(B)(i) economic growth in the corridor, or the end
markets served by the corridor, may be jeopardized by
reliance on limited sources of energy; and
(ii) a diversification of supply is warranted;
(C) the energy independence of the United States
would be served by the designation;
(D) the designation would be in the interest of
national energy policy; and
(E) the designation would enhance national defense
and homeland security.
(b) Construction Permit.--Except as provided in subsection
(i), the Commission may, after notice and an opportunity for
hearing, issue 1 or more permits for the construction or
modification of electric transmission facilities in a national
interest electric transmission corridor designated by the
Secretary under subsection (a) if the Commission finds that--
(1)(A) a State in which the transmission facilities
are to be constructed or modified does not have
authority to--
(i) approve the siting of the facilities; or
(ii) consider the interstate benefits
expected to be achieved by the proposed
construction or modification of transmission
facilities in the State;
(B) the applicant for a permit is a transmitting
utility under this Act but does not qualify to apply
for a permit or siting approval for the proposed
project in a State because the applicant does not serve
end-use customers in the State; or
(C) a State commission or other entity that has
authority to approve the siting of the facilities has--
(i) withheld approval for more than 1 year
after the filing of an application seeking
approval pursuant to applicable law or 1 year
after the designation of the relevant national
interest electric transmission corridor,
whichever is later; or
(ii) conditioned its approval in such a
manner that the proposed construction or
modification will not significantly reduce
transmission congestion in interstate commerce
or is not economically feasible;
(2) the facilities to be authorized by the permit
will be used for the transmission of electric energy in
interstate commerce;
(3) the proposed construction or modification is
consistent with the public interest;
(4) the proposed construction or modification will
significantly reduce transmission congestion in
interstate commerce and protects or benefits consumers;
(5) the proposed construction or modification is
consistent with sound national energy policy and will
enhance energy independence; and
(6) the proposed modification will maximize, to the
extent reasonable and economical, the transmission
capabilities of existing towers or structures so as to
minimize the environmental and visual impact of the
proposed modification.
(c) Permit Applications.--(1) Permit applications under
subsection (b) shall be made in writing to the Commission.
(2) The Commission shall issue rules specifying--
(A) the form of the application;
(B) the information to be contained in the
application; and
(C) the manner of service of notice of the permit
application on interested persons.
(d) Comments.--In any proceeding before the Commission
under subsection (b), the Commission shall afford each State in
which a transmission facility covered by the permit is or will
be located, each affected Federal agency and Indian tribe,
private property owners, and other interested persons, a
reasonable opportunity to present their views and
recommendations with respect to the need for and impact of a
facility covered by the permit.
(e) Rights-of-Way.--(1) In the case of a permit under
subsection (b) for electric transmission facilities to be
located on property other than property owned by the United
States or a State, if the permit holder cannot acquire by
contract, or is unable to agree with the owner of the property
to the compensation to be paid for, the necessary right-of-way
to construct or modify the transmission facilities, the permit
holder may acquire the right-of-way by the exercise of the
right of eminent domain in the district court of the United
States for the district in which the property concerned is
located, or in the appropriate court of the State in which the
property is located.
(2) Any right-of-way acquired under paragraph (1) shall be
used exclusively for the construction or modification of
electric transmission facilities within a reasonable period of
time after the acquisition.
(3) The practice and procedure in any action or proceeding
under this subsection in the district court of the United
States shall conform as nearly as practicable to the practice
and procedure in a similar action or proceeding in the courts
of the State in which the property is located.
(f) Compensation.--(1) Any right-of-way acquired pursuant
to subsection (e) shall be considered a taking of private
property for which just compensation is due.
(2) Just compensation shall be an amount equal to the fair
market value (including applicable severance damages) of the
property taken on the date of the exercise of eminent domain
authority.
(g) State Law.--Nothing in this section precludes any
person from constructing or modifying any transmission facility
in accordance with State law.
(h) Coordination of Federal Authorizations for Transmission
Facilities.--(1) In this subsection:
(A) The term ``Federal authorization'' means any
authorization required under Federal law in order to
site a transmission facility.
(B) The term ``Federal authorization'' includes such
permits, special use authorizations, certifications,
opinions, or other approvals as may be required under
Federal law in order to site a transmission facility.
(2) The Department of Energy shall act as the lead agency
for purposes of coordinating all applicable Federal
authorizations and related environmental reviews of the
facility.
(3) To the maximum extent practicable under applicable
Federal law, the Secretary shall coordinate the Federal
authorization and review process under this subsection with any
Indian tribes, multistate entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely and
efficient review and permit decisions.
(4)(A) As head of the lead agency, the Secretary, in
consultation with agencies responsible for Federal
authorizations and, as appropriate, with Indian tribes,
multistate entities, and State agencies that are willing to
coordinate their own separate permitting and environmental
reviews with the Federal authorization and environmental
reviews, shall establish prompt and binding intermediate
milestones and ultimate deadlines for the review of, and
Federal authorization decisions relating to, the proposed
facility.
(B) The Secretary shall ensure that, once an application
has been submitted with such data as the Secretary considers
necessary, all permit decisions and related environmental
reviews under all applicable Federal laws shall be completed--
(i) within 1 year; or
(ii) if a requirement of another provision of Federal
law does not permit compliance with clause (i), as soon
thereafter as is practicable.
(C) The Secretary shall provide an expeditious pre-
application mechanism for prospective applicants to confer with
the agencies involved to have each such agency determine and
communicate to the prospective applicant not later than 60 days
after the prospective applicant submits a request for such
information concerning--
(i) the likelihood of approval for a potential
facility; and
(ii) key issues of concern to the agencies and
public.
(5)(A) As lead agency head, the Secretary, in consultation
with the affected agencies, shall prepare a single
environmental review document, which shall be used as the basis
for all decisions on the proposed project under Federal law.
(B) The Secretary and the heads of other agencies shall
streamline the review and permitting of transmission within
corridors designated under section 503 of the Federal Land
Policy and Management Act (43 U.S.C. 1763) by fully taking into
account prior analyses and decisions relating to the corridors.
(C) The document shall include consideration by the
relevant agencies of any applicable criteria or other matters
as required under applicable law.
(6)(A) If any agency has denied a Federal authorization
required for a transmission or distribution facility, or has
failed to act by the deadline established by the Secretary
pursuant to this section for deciding whether to issue the
authorization, the applicant or any State in which the facility
would be located may file an appeal with the President, who
shall, in consultation with the affected agency, review the
denial or failure to take action on the pending application.
(B) Based on the overall record and in consultation with
the affected agency, the President may--
(i) issue the necessary authorization with any
appropriate conditions; or
(ii) deny the application.
(C) The President shall issue a decision not later than 90
days after the date of the filing of the appeal.
(D) In making a decision under this paragraph, the
President shall comply with applicable requirements of Federal
law, including any requirements of--
(i) the National Forest Management Act of 1976 (16
U.S.C. 472a et seq.);
(ii) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.);
(iii) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
(iv) the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.); and
(v) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.).
(7)(A) Not later than 18 months after the date of enactment
of this section, the Secretary shall issue any regulations
necessary to implement this subsection.
(B)(i) Not later than 1 year after the date of enactment of
this section, the Secretary and the heads of all Federal
agencies with authority to issue Federal authorizations shall
enter into a memorandum of understanding to ensure the timely
and coordinated review and permitting of electricity
transmission facilities.
(ii) Interested Indian tribes, multistate entities, and
State agencies may enter the memorandum of understanding.
(C) The head of each Federal agency with authority to issue
a Federal authorization shall designate a senior official
responsible for, and dedicate sufficient other staff and
resources to ensure, full implementation of the regulations and
memorandum required under this paragraph.
(8)(A) Each Federal land use authorization for an
electricity transmission or distribution facility shall be
issued--
(i) for a duration, as determined by the Secretary,
commensurate with the anticipated use of the facility;
and
(ii) with appropriate authority to manage the right-
of-way for reliability and environmental protection.
(B) On the expiration of the authorization (including an
authorization issued before the date of enactment of this
section), the authorization shall be reviewed for renewal
taking fully into account reliance on such electricity
infrastructure, recognizing the importance of the authorization
for public health, safety, and economic welfare and as a
legitimate use of Federal land.
(9) In exercising the responsibilities under this section,
the Secretary shall consult regularly with--
(A) the Federal Energy Regulatory Commission;
(B) electric reliability organizations (including
related regional entities) approved by the Commission;
and
(C) Transmission Organizations approved by the
Commission.
(i) Interstate Compacts.--(1) The consent of Congress is
given for 3 or more contiguous States to enter into an
interstate compact, subject to approval by Congress,
establishing regional transmission siting agencies to--
(A) facilitate siting of future electric energy
transmission facilities within those States; and
(B) carry out the electric energy transmission siting
responsibilities of those States.
(2) The Secretary may provide technical assistance to
regional transmission siting agencies established under this
subsection.
(3) The regional transmission siting agencies shall have
the authority to review, certify, and permit siting of
transmission facilities, including facilities in national
interest electric transmission corridors (other than facilities
on property owned by the United States).
(4) The Commission shall have no authority to issue a
permit for the construction or modification of an electric
transmission facility within a State that is a party to a
compact, unless the members of the compact are in disagreement
and the Secretary makes, after notice and an opportunity for a
hearing, the finding described in subsection (b)(1)(C).
(j) Relationship to Other Laws.--(1) Except as specifically
provided, nothing in this section affects any requirement of an
environmental law of the United States, including the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Subsection (h)(6) shall not apply to any unit of the
National Park System, the National Wildlife Refuge System, the
National Wild and Scenic Rivers System, the National Trails
System, the National Wilderness Preservation System, or a
National Monument.
SEC. 217. PROMOTION OF VOLUNTARY TRANSMISSION ORGANIZATIONS.
(a) In General.--The Commission may encourage and may
approve the voluntary formation of RTOs, ISOs, or other similar
organizations approved by the Commission for the purposes of--
(1) promoting fair, open access to electric
transmission service;
(2) facilitating wholesale competition;
(3) improving efficiencies in transmission grid
management;
(4) promoting grid reliability;
(5) removing opportunities for unduly discriminatory
or preferential transmission practices; and
(6) providing for the efficient development of
transmission infrastructure needed to meet the growing
demands of competitive wholesale power markets.
(b) Operational Control.--No order issued under this Act
shall be conditioned on or require a transmitting utility to
transfer operational control of jurisdictional facilities to a
Transmission Organization approved by the Commission.
(c) Annual Audits.--(1) Each Transmission Organization
shall report to the Commission on a scheduled basis, as
determined by the Commission, the means by which the
Transmission Organization will ensure that the Transmission
Organization will operate and perform the functions of the
Transmission Organization in a cost effective manner that is
also consistent with the obligations of the Transmission
Organization under the Commission-approved tariffs and
agreements of the Transmission Organization.
(2) The Commission shall annually audit the compliance of
the Transmission Organization with the filed plan and any
additional Commission requirements concerning the performance,
operations, and cost efficiencies of the Transmission
Organization.
(3) The Commission shall establish appropriate accounting
procedures for recording costs to facilitate comparisons among
Transmission Organizations and, to the extent practicable,
among other transmitting utilities performing similar
functions.
SEC. 218. NATIVE LOAD SERVICE OBLIGATION.
(a) Definitions.--In this section:
(1) The term ``distribution utility'' means an
electric utility that has a service obligation to end-
users or to a State utility or electric cooperative
that, directly or indirectly, through 1 or more
additional State utilities or electric cooperatives,
provides electric service to end-users.
(2) The term ``load-serving entity'' means a
distribution utility or an electric utility that has a
service obligation.
(3) The term ``service obligation'' means a
requirement applicable to, or the exercise of authority
granted to, an electric utility under Federal, State,
or local law or under long-term contracts to provide
electric service to end-users or to a distribution
utility.
(4) The term ``State utility'' means a State or any
political subdivision of a State, or any agency,
authority, or instrumentality of any 1 or more States
or political subdivisions, or a corporation that is
wholly owned, directly or indirectly, by any 1 or more
of the States or political subdivisions, competent to
carry on the business of developing, transmitting,
using, or distributing power.
(b) Meeting Service Obligations.--(1) Paragraph (2) applies
to any load-serving entity that, as of the date of enactment of
this section--
(A) owns generation facilities, markets the output of
Federal generation facilities, or holds rights under 1
or more wholesale contracts to purchase electric
energy, for the purpose of meeting a service
obligation; and
(B) by reason of ownership of transmission
facilities, or 1 or more contracts or service
agreements for firm transmission service, holds firm
transmission rights for delivery of the output of the
generation facilities or the purchased energy to meet
the service obligation.
(2) Any load-serving entity described in paragraph (1) is
entitled to use the firm transmission rights, or, equivalent
tradable or financial transmission rights, in order to deliver
the output or purchased energy, or the output of other
generating facilities or purchased energy to the extent
deliverable using the rights, to the extent required to meet
the service obligation of the load-serving entity.
(3)(A) To the extent that all or a portion of the service
obligation covered by the firm transmission rights or
equivalent tradable or financial transmission rights is
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission
rights or equivalent tradable or financial transmission rights
associated with the transferred service obligation.
(B) Subsequent transfers to another load-serving entity, or
back to the original load-serving entity, shall be entitled to
the same rights.
(4) The Commission shall exercise the authority of the
Commission under this Act in a manner that facilitates the
planning and expansion of transmission facilities to meet the
reasonable needs of load-serving entities to satisfy the
service obligations of the load-serving entities, and enables
load-serving entities to secure firm transmission rights (or
equivalent tradable or financial rights) on a long term basis
for long term power supply arrangements made, or planned, to
meet such needs.
(c) Allocation of Transmission Rights.--Nothing in
subsections (b)(1), (b)(2) and (b)(3) of this section shall
affect any existing or future methodology employed by a
Transmission Organization for allocating or auctioning
transmission rights if such Transmission Organization was
authorized by the Commission to allocate or auction financial
transmission rights on its system as of January 1, 2005, and
the Commission determines that any future allocation or auction
is just, reasonable and not unduly discriminatory or
preferential, provided, however, that if such a Transmission
Organization never allocated financial transmission rights on
its system that pertained to a period before January 1, 2005,
with respect to any application by such Transmission
Organization that would change its methodology the Commission
shall exercise its authority in a manner consistent with the
Act and that takes into account the policies expressed in
subsections (b)(1), (b)(2) and (b)(3) as applied to firm
transmission rights held by a load-serving entity as of January
1, 2005, to the extent the associated generation ownership or
power purchase arrangements remain in effect.
(d) Certain Transmission Rights.--The Commission may
exercise authority under this Act to make transmission rights
not used to meet an obligation covered by subsection (b)
available to other entities in a manner determined by the
Commission to be just, reasonable, and not unduly
discriminatory or preferential.
(e) Obligation To Build.--Nothing in this Act relieves a
load-serving entity from any obligation under State or local
law to build transmission or distribution facilities adequate
to meet the service obligations of the load-serving entity.
(f) Contracts.--Nothing in this section provides a basis
for abrogating any contract or service agreement for firm
transmission service or rights in effect as of the date of
enactment of this section. If an ISO in the Western
Interconnection had allocated financial transmission rights
prior to the date of enactment of this section but had not done
so with respect to one or more load-serving entities' firm
transmission rights held under contracts to which the preceding
sentence applies (or held by reason of ownership or future
ownership of transmission facilities), such load-serving
entities may not be required, without their consent, to convert
such firm transmission rights to tradable or financial rights,
except where the load-serving entity has voluntarily joined the
ISO as a participating transmission owner (or its successor) in
accordance with the ISO tariff.
(g) Water Pumping Facilities.--The Commission shall ensure
that any entity described in section 201(f) that owns
transmission facilities used predominately to support its own
water pumping facilities shall have, with respect to the
facilities, protections for transmission service comparable to
those provided to load-serving entities pursuant to this
section.
(h) Ercot.--This section shall not apply within the area
referred to in section 212(k)(2)(A).
(i) Jurisdiction.--This section does not authorize the
Commission to take any action not otherwise within the
jurisdiction of the Commission.
(j) TVA Area.--(1) Subject to paragraphs (2) and (3), for
purposes of subsection (b)(1)(B), a load-serving entity that is
located within the service area of the Tennessee Valley
Authority and that has a firm wholesale power supply contract
with the Tennessee Valley Authority shall be considered to hold
firm transmission rights for the transmission of the power
provided.
(2) Nothing in this subsection affects the requirements of
section 212(j).
(3) The Commission shall not issue an order on the basis of
this subsection that is contrary to the purposes of section
212(j).
(h) FERC Rulemaking on Long-Term Transmission Rights in
Organized Markets.--Within one year after the date of enactment
of this section and after notice and an opportunity for
comment, the Commission shall by rule or order implement
subsection (b)(4) in Transmission Organizations with organized
electricity markets.
(i) Effect of Exercising Rights.--An entity that to the
extent required to meet its service obligations exercises
rights described in subsection (b) shall not be considered by
such action as engaging in undue discrimination or preference
under this Act.
SEC. 219. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC
NORTHWEST.
(a) Definition of Electric Utility or Person.--In this
section, the term ``electric utility or person'' means an
electric utility or person that--
(1) as of the date of enactment of the Energy Policy
Act of 2005 holds firm transmission rights pursuant to
contract or by reason of ownership of transmission
facilities; and
(2) is located--
(A) in the Pacific Northwest, as that region
is defined in section 3 of the Pacific
Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839a); or
(B) in that portion of a State included in
the geographic area proposed for a regional
transmission organization in Commission Docket
Number RT01-35 on the date on which that docket
was opened.
(b) Protection of Transmission Contracts.--Nothing in this
Act confers on the Commission the authority to require an
electric utility or person to convert to tradable or financial
rights--
(1) firm transmission rights described in subsection
(a)(1); or
(2) firm transmission rights obtained by exercising
contract or tariff rights associated with the firm
transmission rights described in subsection (a)(1).
SEC. 220. TRANSMISSION INFRASTRUCTURE INVESTMENT.
(a) Rulemaking Requirement.--Not later than 1 year after
the date of enactment of this section, the Commission shall
establish, by rule, incentive-based (including performance-
based) rate treatments for the transmission of electric energy
in interstate commerce by public utilities for the purpose of
benefiting consumers by ensuring reliability and reducing the
cost of delivered power by reducing transmission congestion.
(b) Contents.--The rule shall--
(1) promote reliable and economically efficient
transmission and generation of electricity by promoting
capital investment in the enlargement, improvement,
maintenance, and operation of all facilities for the
transmission of electric energy in interstate commerce,
regardless of the ownership of the facilities;
(2) provide a return on equity that attracts new
investment in transmission facilities (including
related transmission technologies);
(3) encourage deployment of transmission technologies
and other measures to increase the capacity and
efficiency of existing transmission facilities and
improve the operation of the facilities; and
(4) allow recovery of--
(A) all prudently incurred costs necessary to
comply with mandatory reliability standards
issued pursuant to section 215; and
(B) all prudently incurred costs related to
transmission infrastructure development
pursuant to section 216.
(c) Just and Reasonable Rates.--All rates approved under
the rules adopted pursuant to this section, including any
revisions to the rules, are subject to the requirements of
sections 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly discriminatory
or preferential.
SEC. 221. MARKET TRANSPARENCY RULES.
(a) In General.--The Commission may issue such rules as the
Commission considers to be appropriate to establish an
electronic information system to provide the Commission and the
public with access to such information as is necessary or
appropriate to facilitate price transparency and participation
in markets for the sale in interstate commerce of electric
energy at wholesale.
(b) Information To Be Made Available.--(1) The system under
subsection (a) shall provide, on a timely basis, information
about the availability and market price of wholesale electric
energy and transmission services to the Commission, State
commissions, buyers and sellers of wholesale electric energy,
users of transmission services, and the public.
(2) In determining the information to be made available
under the system and the time at which to make such information
available, the Commission shall seek to ensure that consumers
and competitive markets are protected from the adverse effects
of potential collusion or other anticompetitive behaviors that
can be facilitated by untimely public disclosure of
transaction-specific information.
(c) Authority To Obtain Information.--The Commission shall
have authority to obtain information described in subsections
(a) and (b) from any electric utility or transmitting utility
(including any entity described in section 201(f)).
(d) Exemptions.--The rules of the Commission, if adopted,
shall exempt from disclosure information that the Commission
determines would, if disclosed--
(1) be detrimental to the operation of an effective
market; or
(2) jeopardize system security.
(e) Commodity Futures Trading Commission.--(1) This section
shall not affect the exclusive jurisdiction of the Commodity
Futures Trading Commission with respect to accounts,
agreements, contracts, or transactions in commodities under the
Commodity Exchange Act (7 U.S.C. 1 et seq.).
(2) Any request for information to a designated contract
market, registered derivatives transaction execution facility,
board of trade, exchange, or market involving an account,
agreement, contract, or transaction in a commodity (including
natural gas, electricity and other energy commodities) within
the exclusive jurisdiction of the Commodity Futures Trading
Commission shall be directed to the Commodity Futures Trading
Commission, which shall cooperate in responding to any
information request by the Commission.
(f) Savings Provision.--In exercising authority under this
section, the Commission shall not--
(1) compete with, or displace from the market place,
any price publisher (including any electronic price
publisher); or
(2) regulate price publishers (including any
electronic price publisher) or impose any requirements
on the publication of information by price publishers
(including any electronic price publisher).
(g) ERCOT.--This section shall not apply to a transaction
for the purchase or sale of wholesale electric energy or
transmission services within the area described in section
212(k)(2)(A).
SEC. 222. PROHIBITION ON FILING FALSE INFORMATION.
No entity (including an entity described in section 201(f))
shall willfully and knowingly report any information relating
to the price of electricity sold at wholesale or the
availability of transmission capacity, which information the
person or any other entity knew to be false at the time of the
reporting, to a Federal agency with intent to fraudulently
affect the data being compiled by the Federal agency.
SEC. 223. PROHIBITION OF ENERGY MARKET MANIPULATION.
It shall be unlawful for any entity (including an entity
described in section 201(f)), directly or indirectly, to use or
employ, in connection with the purchase or sale of electric
energy or the purchase or sale of transmission services subject
to the jurisdiction of the Commission, any manipulative or
deceptive device or contrivance (as those terms are used in
section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78j(b))), in contravention of such rules and regulations as the
Commission may prescribe as necessary or appropriate in the
public interest or for the protection of electric ratepayers.
* * * * * * *
PART III--LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND ADMINISTRATIVE
PROVISIONS
* * * * * * *
COMPLAINTS
Sec. 306. Any person, electric utility, State,
municipality, or State commission complaining of anything done
or omitted to be done by any licensee, transmitting utility, or
public utility in contravention of the provisions of this Act
may apply to the Commission by petition which shall briefly
state the facts, whereupon a statement of the complaint thus
made shall be forwarded by the Commission to such licensee,
transmitting utility, or public utility, who shall be called
upon to satisfy the complaint or to answer the same in writing
within a reasonable time to be specified by the Commission. If
such licensee, transmitting utility, or public utility shall
not satisfy the complaint within the time specified or there
shall appear to be any reasonable ground for investigating such
complaint, it shall be the duty of the Commission to
investigate the matters complained of in such manner and by
such means as it shall find proper.
INVESTIGATIONS BY COMMISSION; ATTENDANCE OF WITNESSES; DEPOSITIONS
Sec. 307. (a) The Commission may investigate any facts,
conditions, practices, or matters which it may find necessary
or proper in order to determine whether any person, electric
utility, transmitting utility, or other entity has violated or
is about to violate any provision of this Act or any rule,
regulation, or order thereunder, or to aid in the enforcement
of the provisions of this Act or in prescribing rules or
regulations thereunder, or in obtaining information to serve as
a basis for recommending further legislation concerning the
matters to which this Act relates, or in obtaining information
about the sale of electric energy at wholesale in interstate
commerce and the transmission of electric energy in interstate
commerce. The Commission may permit any person, electric
utility, transmitting utility, or other entity to file with it
a statement in writing under oath or otherwise, as it shall
determine, as to any or all facts and circumstances concerning
a matter which may be the subject of investigation.
* * * * * * *
REHEARINGS; COURT REVIEW OF ORDERS
Sec. 313. (a) Any person, electric utility, State,
municipality, or State commission aggrieved by an order issued
by the Commission in a proceeding under this chapter to which
such person, electric utility, State, municipality, or State
commission is a party may apply for a rehearing within thirty
days after the issuance of such order. The application for
rehearing shall set forth specifically the ground or grounds
upon which such application is based. Upon such application the
Commission shall have power to grant or deny rehearing or to
abrogate or modify its order without further hearing. Unless
the Commission acts upon the application for rehearing within
thirty days after it is filed, such application may be deemed
to have been denied. No proceeding to review any order of the
Commission shall be brought by [any person unless such person]
any entity unless such entity shall have made application to
the Commission for a rehearing thereon. Until the record in a
proceeding shall have been filed in a court of appeals, as
provided in subsection (b) of this section, the Commission may
at any time, upon reasonable notice and in such manner as it
shall deem proper, modify or set aside, in whole or in part,
any finding or order made or issued by it under the provisions
of this chapter.
* * * * * * *
ENFORCEMENT OF ACT, REGULATIONS AND ORDERS
Sec. 314. * * *
(c) * * *
(d) In any proceeding under paragraph (a), the court may
prohibit, conditionally or unconditionally, and permanently or
for such period of time as the Court determines, any person who
is engaged or has engaged in practices constituting a violation
of Section 222 (and related rules or regulations) from
(1) acting as an officer or director of an electric
utility; or
(2) engaging in the business of purchasing or
selling--
(A) electric energy; or
(B) transmission services subject to the
jurisdiction of the Commission.
GENERAL FORFEITURE PROVISIONS; VENUE
Sec. 315. * * *
(b) * * *
(c) This [subsection] section shall not apply in the case
of any provision of section 211, 212, 213, or 214 or any rule
or order issued under any such provision.
GENERAL PENALTIES
Sec. 316. (a) Any person who willfully and knowingly does
or causes or suffers to be done any act, matter, or thing in
this Act prohibited or declared to be unlawful, or who
willfully and knowingly omits or fails to do any act, matter,
or thing in this Act required to be done, or willfully and
knowingly causes or suffers such omission or failure, shall,
upon conviction thereof, be punished by a fine of not more than
[$5,000] $1,000,000 or by imprisonment for not more than [two
years] five years, or both.
(b) Any person who willfully and knowingly violates any
rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this Act, or any
rule or regulation imposed by the Secretary of the Army under
authority of Part I of this Act shall, in addition to any other
penalties provided by law, be punished upon conviction thereof
by a fine of not exceeding [$500] $25,000 for each and every
day during which such offense occurs.
[(c) This subsection shall not apply in the case of any
provision of section 211, 212, 213, or 214 or any rule or order
issued under any such provision.]
SEC. 316A. ENFORCEMENT OF CERTAIN PROVISIONS
(a) Violations.--It shall be unlawful for any person to
violate any provision of [section 211, 212, 213, or 214] Part
II or any rule or order issued under any such provision.
(b) Civil Penalties.--Any person who violates any provision
of [section 211, 212, 213, or 214] Part II or any provision of
any rule or order thereunder shall be subject to a civil
penalty of not more than [$10,000] $1,000,000 for each day that
such violation continues.
* * * * * * *
[CONFLICT OF JURISDICTION]
[Sec. 318. If, with respect to the issue, sale, or guaranty
of a security, or assumption of obligation or liability in
respect of a security, the method of keeping accounts, the
filing of reports, or the acquisition or disposition of any
security, capital assets, facilities, or any other subject
matter, any person is subject both to a requirement of the
Public Utility Holding Company Act of 1935 or of a rule,
regulation, or order thereunder and to a requirement of this
Act or of a rule, regulation, or order thereunder, the
requirement of the Public Utility Holding Company Act of 1935
shall apply to such person, and such person shall not be
subject to the requirement of this Act, or of any rule,
regulation, or order thereunder, with respect to the same
subject matter, unless the Securities and Exchange Commission
has exempted such person from such requirement of the Public
Utility Holding Company Act of 1935, in which case the
requirements of this Act shall apply to such person.]
---------- --
--------
MINERAL LEASING ACT--ACT OF FEBRUARY 25, 1920, AS AMENDED (30 U.S.C.
181 ET SEQ.)
COAL
Sec. 2. * * *
(d)(1) * * *
(2)(A) After the Secretary has approved the establishment
of a logical mining unit, any mining plan approved for that
unit must require such diligent development, operation, and
production that the reserves of the entire unit will be mined
within a period established by the Secretary which shall not be
more than forty years.
(B) The Secretary may establish a period of more than forty
years if the Secretary determines that--
(i) the longer period will ensure the maximum
economic recovery of a coal deposit; or
(ii) the longer period is in the interest of the
orderly, efficient, or economic development of a coal
resource.
* * * * * * *
Sec. 3. [Any person,] (a)(1) Except as provided in
paragraph (3), on a finding by the Secretary under paragraph
(2), any person, association, or corporation holding a lease of
coal lands or coal deposits under the provisions of this
chapter may with the approval of the Secretary of the Interior,
[upon a finding by him that it would be in the interest of the
United States, secure modifications of the original coal lease
by including additional coal lands or coal deposits contiguous
or cornering to those embraced in such lease, but in no event
shall the total area added by such modifications to an existing
coal lease exceed one hundred sixty acres, or add acreage
larger than that in the original lease.] secure modifications
of the original coal lease by including additional coal lands
or coal deposits contiguous or cornering to those embraced in
the lease.
(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
totalarea added by modifications to an existing coal lease under
paragraph (1)--(A) exceed 320 acres; or (B) add acreage larger than
that in the original lease. [The Secretary] (b) The Secretary shall
prescribe terms and conditions which shall be consistent with this
chapter and applicable to all of the acreage in such modified lease
except that nothing in this section shall require the Secretary to
apply the production or mining plan requirements of sections 202a(2)
and 207(c) of this title. [The minimum] (c) The minimum royalty
provisions of section 207(a) of this title shall not apply to any lands
covered by this modified lease prior to a modification until the term
of the original lease or extension thereof which became effective prior
to the effective date of this Act has expired.
* * * * * * *
Sec. 7. * * *
(b) [Each lease] (1) Each lease shall be subject to the
conditions of diligent development and continued operation of
the mine or mines, except where operations under the lease are
interrupted by strikes, the elements, or casualties not
attributable to the lessee. [The Secretary] (2) The Secretary
of the Interior, upon determining that the public interest will
be served thereby, may suspend the condition of continued
operation upon the payment of advance royalties. [Such advance
royalties] (3) Advance royalties described in paragraph (2)
shall be no less than the production royalty which would
otherwise be paid and shall be computed on a fixed reserve to
production ratio (determined by the Secretary). [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 ten. 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 such
lease to the extent that such advance royalties have not been
used to reduce production royalties for a prior year. No
advance royalty paid during the initial twenty-year term of a
lease shall be used to reduce a production royalty after the
twentieth year of a lease.] (4) The aggregate number of years
during the period of any lease for which advance royalties may
be accepted in lieu of the condition of continued operation
shall not exceed 20 years. (5) The amount of any production
royalty paid for any year shall be reduced (but not below 0) by
the amount of any advance royalties paid under a lease
described in paragraph (4) to the extent that the advance
royalties have not been used to reduce production royalties for
a prior year. [The Secretary] (6) The Secretary may, upon six
months' notification to the lessee cease to accept advance
royalties in lieu of the requirement of continued operation.
[Nothing] (7) Nothing in this subsection shall be construed to
affect the requirement contained in the second sentence of
subsection (a) of this section relating to commencement of
production at the end of ten years.
(c) Prior to taking any action on a leasehold which might
cause a significant disturbance of the environment, [and not
later than three years after a lease is issued,] the lessee
shall submit for the Secretary's approval an operation and
reclamation plan. The Secretary shall approve or disapprove the
plan or require that it be modified. Where the land involved is
under the surface jurisdiction of another Federal agency, that
other agency must consent to the terms of such approval.
* * * * * * *
Sec. 17. * * *
(b)(1)(B) The national minimum acceptable bid shall be $2
per acre for a period of 2 years from the date of enactment of
the Federal Onshore Oil and Gas Leasing Reform Act of 1987.
Thereafter, the Secretary may establish by regulation a higher
national minimum acceptable bid for all leases based upon a
finding that such action is necessary: (i) to enhance financial
returns to the United States; and (ii) to promote more
efficient management of oil and gas resources on Federal lands.
Ninety days before the Secretary makes any change in the
national minimum acceptable bid, the Secretary shall notify the
Committee on Natural Resources of the United States House of
Representatives and the Committee on Energy and Natural
Resources of the United States Senate. [The] Subject to
paragraph (2)(B), the proposal or promulgation of any
regulation to establish a national minimum acceptable bid shall
not be considered a major Federal action subject to the
requirements of section 102(2)(C) of the National Environmental
Policy Act of 1969.
(2)(A) If the lands to be leased are within a special tar
sand area, [they shall be] the lands may be leased to the
highest responsible qualified bidder by competitive bidding
under general regulations in units of not more than five
thousand one hundred and twenty acres, which shall be as nearly
compact as possible, upon the payment by the lessee of such
bonus as may be accepted by the Secretary. Royalty shall be
12\1/2\ per centum in amount of value of production removed or
sold from the lease subject to section 17(k)(1)(c). The
Secretary may lease such additional lands in special tar sand
areas as may be required in support of any operations necessary
for the recovery of tar sands.
(B) For any area that contains any combination of tar sand
and oil or gas (or both), the Secretary may issue under this
Act, separately--
(i) a lease for exploration for and extraction of tar
sand; and
(ii) a lease for exploration for and development of
oil and gas.
(C) A lease described in subparagraph (B) shall have
provisions addressing the appropriate accommodation of
resources.
(D) A lease issued for tar sand development shall be issued
using the same bidding process, annual rental, and posting
period as a lease issued for oil and gas, except that the
minimum acceptable bid required for a lease issued for tar sand
shall be $2 per acre.
* * * * * * *
Sec. 27. * * *
(d)(1) No person, association, or corporation, except as
otherwise provided in this Act, shall take, hold, own or
control at one time, whether acquired directly from the
Secretary under this Act or otherwise, oil or gas leases
(including options for such leases or interests therein) on
land held under the provisions of this Act exceeding in the
aggregate two hundred forty-six thousand and eighty acres in
any one State other than Alaska: Provided, however, That
acreage held in special tar sand areas, 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, shall not be
chargeable against such State limitations. In the case of the
State of Alaska, the limit shall be three hundred thousand
acres in the northern leasing district and three hundred
thousand acres in the southern leasing district, and the
boundary between said two districts shall be the left limit of
the Tanana River from the border between the United States and
Canada to the confluence of the Tanana and Yukon Rivers, and
the left limit of the Yukon River from said confluence to its
principal southern mouth.
---------- --
--------
APPROPRIATIONS FOR THE DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1981--PUBLIC LAW 96-514, AS
AMENDED
An Act
Making appropriations for the Department of the Interior and
related agencies for the fiscal year ending September 30, 1981,
and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the Department of the
Interior and related agencies for the fiscal year ending
September 30, 1981, and for other purposes, namely:
TITLE I--DEPARTMENT OF THE INTERIOR
* * * * * * *
ENERGY AND MINERALS
* * * * * * *
[For necessary expenses of carrying out the provisions of
section 104 of Public Law 94-258, and for conducting hereafter
and with funds appropriated by this Act and by subsequent
appropriations Acts, notwithstanding any other provision of law
and pursuant to such rules and regulations as the Secretary may
prescribe, an expeditious program of competitive leasing of oil
and gas in the National Petroleum Reserve in Alaska: Provided,
That (1) activities undertaken pursuant to this section shall
include or provide for, $107,001,000, to remain available until
expended: Provided, that (1) activities undertaken pursuant to
this Act shall include or provide for such conditions,
restrictions, and prohibitions as the Secretary deems necessary
or appropriate to mitigate reasonably foreseeable and
significantly adverse effects on the surface resources of the
National Petroleum Reserve in Alaska (the Reserve); (2) the
provisions of section 202 and section 603 of the Federal Lands
Policy and Management Act of 1976 (90 Stat. 2743) shall not be
applicable to the Reserve; (3) the first lease sale shall be
conducted within twenty months of the date of enactment of this
Act: Provided, That the first lease sale shall be conducted
only after publication of a final environmental impact
statement if such is deemed necessary under the provisions of
the National Environmental Policy Act of 1969 (42 U.S.C. 4332);
(4) the withdrawals established by section 102 of Public Law
94-258 are rescinded for the purposes of the oil and gas
leasing program authorized herein; (5) bidding systems used in
lease sales shall be based on bidding systems included in
section 205(a)(1)(A) through (H) of the Outer Continental Shelf
Lands Act Amendments of 1978 (92 Stat. 629); (6) lease tracts
may encompass identified geological structures; (7) the size of
lease tracts may be up to sixty thousand acres, as determined
by the Secretary; (8) each lease shall be issued for an initial
period of ten years, and shall be extended for so long
thereafter as oil or gas is produced from the lease in paying
quantities, or as drilling or reworking operations, as approved
by the Secretary, are conducted thereon; (9) for purposes of
conservation of the natural resources of any oil or gas pool,
field, or like area, or any part thereof, lessees thereof and
their representatives are authorized to unite with each other,
or jointly or separately with others, in collectively adopting
and operating under a unit agreement for such pool, field, or
like area, or any part thereof (whether or not any other part
of said oil or gas pool, field, or like area is already subject
to any cooperative or unit plan of development or operation),
whenever determined by the Secretary to be necessary or
advisable in the public interest. Drilling, production, and
well reworking operations performed in accordance with a unit
agreement shall be deemed to be performed for the benefit of
all leases that are subject in whole or in part to such unit
agreement. When separate tracts cannot be independently
developed and operated in conformity with an established well
spacing or development program, any lease, or a portion
thereof, may be pooled with other lands, whether or not owned
by the United States, under a communitization or drilling
agreement providing for an apportionment of production or
royalties among the separate tracts of land comprising the
drilling or spacing unit when determined by the Secretary of
the Interior to be in the public interest, and operations or
production pursuant to such an agreement shall be deemed to be
operations or production as to each such lease committed
thereto; (10) to encourage the greatest ultimate recovery of
oil or gas or in the interest of conservation the Secretary is
authorized to waive, suspend, or reduce the rental, or minimum
royalty, or reduce the royalty on an entire leasehold,
including on any lease operated pursuant to a unit agreement,
whenever in his judgment the leases cannot be successfully
operated under the terms provided therein. The Secretary is
authorized to direct or assent to the suspension of operations
and production on any lease or unit. In the event the
Secretary, in the interest of conservation, shall direct or
assent to the suspension of operations and production on any
lease or unit, any payment of acreage rental or minimum royalty
prescribed by such lease or unit likewise shall be suspended
during the period of suspension of operations and production,
and the term of such lease shall be extended by adding any such
suspension period thereto; and (11) all receipts from sales,
rentals, bonuses, and royalties on leases issued pursuant to
this section shall be paid into theTreasury of the United
States: Provided, That 50 percent thereof shall be paid by the
Secretary of the Treasury semiannually, as soon thereafter as
practicable after March 30 and September 30 each year, to the State of
Alaska for: (A) planning; (B) construction, maintenance, and operation
of essential public facilities; and (C) other necessary provisions of
public service: Provided further, That in the allocation of such funds,
the State shall give priority to use by subdivisions of the State most
directly or severely impacted by development of oil and gas leased
under this section.
[Any agency of the United States and any person authorized
by the Secretary may conduct geological and geophysical
explorations in the National Petroleum Reserve in Alaska which
do not interfere with operations under any contract maintained
or granted previously. Any information acquired in such
explorations shall be subject to the conditions of 43 U.S.C.
1352(a)(1)(A).
[Any action seeking judicial review of the adequacy of any
program or site-specific environmental impact statement under
section 102 of the National Environmental Policy Act of 1969
(42 U.S.C. 4332) concerning oil and gas leasing in the National
Petroleum Reserve-Alaska shall be barred unless brought in the
appropriate District Court within 60 days after notice of the
availability of such statement is published in the Federal
Register.
[The detailed environmental studies and assessments that
have been conducted on the exploration program and the
comprehensive land-use studies carried out in response to
sections 105(b) and (c) of Public Law 94-258 shall be deemed to
have fulfilled the requirements of section 102(2)(c) of the
National Environmental Policy Act (Public Law 91-190), with
regard to the first two oil and gas lease sales in the National
Petroleum Reserve-Alaska: Provided, That not more than a total
of 2,000,000 acres may be leased in these two sales: Provided
further, That any exploration or production undertaken pursuant
to this section shall be in accordance with section 104(b) of
the Naval Petroleum Reserves Production Act of 1976 (90 Stat.
304; 42 U.S.C. 6504).]
----------
NATIONAL PETROLEUM RESERVE IN ALASKA--PUBLIC LAW 94-258 AS AMENDED
THROUGH P.L. 108-68, JUNE 18, 2003
AN ACT To authorize the Secretary of the Interior to
establish on certain public lands of the United States national
petroleum reserves the development of which needs to be
regulated in a manner consistent with the total energy needs of
the Nation, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
Act may be cited as the ``Naval Petroleum Reserves Production
Act of 1976''.
TITLE I--NATIONAL PETROLEUM RESERVE IN ALASKA
* * * * * * *
ADMINISTRATION OF THE RESERVE
Sec. 104. [(a) Except as provided in subsection (e) of this
section, production of petroleum from the reserve is prohibited
and no development leading to production of petroleum from the
reserve shall be undertaken until authorized by an Act of
Congress.]
[(b)] (a) Any exploration within the Utukok River, the
Teshekpuk Lake areas, and other areas designated by the
Secretary of the Interior containing any significant
subsistence, recreational, fish and wildlife, or historical or
scenic value, shall be conducted in a manner which will assure
the maximum protection of such surface values to the extent
consistent with the requirements of this Act for the
exploration of the reserve.
[(c)] (b) The Secretary of the Navy shall continue the
ongoing petroleum exploration program within the reserve until
the date of the transfer of jurisdiction specified in section
103(a). Prior to the date of such transfer of jurisdiction the
Secretary of the Navy shall--
(1) cooperate fully with the Secretary of the
Interior providing him access to such facilities and
such information as he may request to facilitate the
transfer of jurisdiction;
(2) provide to the Committee on Energy and Natural
Resources of the Senate and the Committee on Natural
Resources of the House of Representatives copies of any
reports, plans, or contracts pertaining to the reserve
that are required to be submitted to the Committees on
Armed Services of the Senate and the House of
Representatives; and
(3) cooperate and consult with the Secretary of the
Interior before executing any new contract or amendment
to any existing contract pertaining to the reserve and
allow him a reasonable opportunity to comment on such
contract or amendment, as the case may be.
[(d)] (c) The Secretary of the Interior shall commence
further petroleum exploration of the reserve as of the date of
transfer of jurisdiction specified in section 103(a). In
conducting this exploration effort, the Secretary of the
Interior--
* * * * * * *
ANTITRUST PROVISIONS
Sec. 106. Unless otherwise provided by Act of Congress,
whenever development leading to production of petroleum is
authorized, the provisions of subsections (g), (h), and (i) of
section 7430 of title 10, United States Code, shall be deemed
applicable to the Secretary of the Interior with respect to
rules and regulations, plans of development and amendments
thereto, and contracts and operating agreements. All plans and
proposals submitted to the Congress under this title or
pursuant to legislation authorizing development leading to
production shall contain a report by the Attorney General of
the United States on the anticipated effects upon competition
of such plans and proposals.
SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
(a) In General.--The Secretary shall conduct an expeditious
program of competitive leasing of oil and gas in the Reserve in
accordance with this Act.
(b) Mitigation of Adverse Effects.--
(1) In general.--Activities undertaken pursuant to
this Act shall include or provide for such conditions,
restrictions, and prohibitions as the Secretary deems
necessary or appropriate to prevent to the extent
practicable, and to mitigate, reasonably foreseeable
and significantly adverse effects on the surface
resources of the National Petroleum Reserve in Alaska.
(2) Certain resources and facilities.--In carrying
out the leasing program under this section, the
Secretary shall minimize, to the extent practicable,
the impact to surface resources and consolidate
facilities.
(c) Land Use Planning; BLM Wilderness Study.--The
provisions of section 202 and section 603 of the Federal Lands
Policy and Management Act of 1976 (90 Stat. 2743) shall not be
applicable to the Reserve.
(d) First Lease Sale.--The first lease sale shall be
conducted within twenty months of the date of enactment of this
Act: Provided, That the first lease sale shall be conducted
only after publication of a final environmental impact
statement if such is deemed necessary under the provisions of
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
(e) Withdrawals.--The withdrawals established by section
102 of Public Law 94-258 are rescinded for the purposes of the
oil and gas leasing program authorized under this section.
(f) Bidding Systems.--Bidding systems used in lease sales
shall be based on bidding systems included in section 205(a)(1)
(A) through (H) of the Outer Continental Shelf Lands Act
Amendments of 1978 (92 Stat. 629).
(g) Geological Structures.--Lease tracts may encompass
identified geological structures.
(h) Size of Lease Tracts.--The size of lease tracts may be
up to sixty thousand acres, as determined by the Secretary.
(i) Terms.--
(1) In general.--Each lease shall be issued for an
initial period of not more than 10 years, and shall be
extended for so long thereafter as oil or gas is
produced from the lease in paying quantities or
drilling or reworking operations, as approved by the
Secretary, are conducted on the leased land.
(2) Termination.--No lease issued under this section
covering lands capable of producing oil or gas in
paying quantities shall expire because the lessee fails
to produce the same unless the lessee is allowed a
reasonable time, which shall be not less than 60 days
after notice by registered or certified mail, within
which to place the lands in producing status or unless,
after such status is established, production is
discontinued on the leased premises without permission
granted by the Secretary under the provisions of this
Act.
(3) Renewal of leases without discoveries.--At the
end of the primary term of a lease, the Secretary shall
renew for one additional 10-year term a lease that does
not meet the requirements of paragraph (1) if the
lessee submits to the Secretary an application for
renewal not later than 60 days before the expiration of
the primary lease, pays the Secretary a renewal fee of
$100 per acre of leased land, and--
(A) the lessee provides evidence, and the
Secretary agrees that, the lessee has
diligently pursued exploration that warrants
continuation with the intent of continued
exploration or future potential development of
the leased land; or
(B) all or part of the lease--
(i) is part of a unit agreement
covering a lease described in
subparagraph (A); and
(ii) has not been previously
contracted out of the unit.
(4) Applicability.--This subsection applies to a
lease that is in effect on or after the date of
enactment of the Energy Policy Act of 2005.
(j) Unit Agreements.--
(1) In general.--For the purpose of conservation of
the natural resources of all or part of any oil or gas
pool, field, reservoir, or like area, lessees
(including representatives) of the pool, field,
reservoir, or like area may unite with each other, or
jointly or separately with others, in collectively
adopting and operating under a unit agreement for all
or part of the pool, field, reservoir, or like area
(whether or not any other part of the oil or gas pool,
field, reservoir, or like area is already subject to
any cooperative or unit plan of development or
operation), if the Secretary determines the action to
be necessary or advisable in the public interest. In
determining the public interest, the Secretary shall,
among other things, examine the extent to which the
unit agreement will minimize the impact to surface
resources of the leases and will facilitate
consolidation of facilities.
(2) Consultation.--In making a determination under
paragraph (1), the Secretary shall consult with the
State of Alaska or a Regional Corporation (as defined
in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602)) with respect to the creation or
expansion of units that include acreage in which the
State of Alaska or the Regional Corporation has an
interest in the mineral estate.
(3) Production allocation methodology.--
(A) The Secretary may use a production
allocation methodology for each participating
area within a unit that includes solely Federal
land in the Reserve.
(B) The Secretary shall use a production
allocation methodology for each participating
area within a unit that includes Federal land
in the Reserve and non-Federal land based on
the characteristics of each specific oil or gas
pool, field, reservoir, or like area to take
into account reservoir heterogeneity and area
variation in reservoir producibility across
diverse leasehold interests. The implementation
of the foregoing production allocation
methodology shall be controlled by agreement
among the affected lessors and lessees.
(4) Benefit of operations.--Drilling, production, and
well reworking operations performed in accordance with
a unit agreement shall be deemed to be performed for
the benefit of all leases that are subject in whole or
in part to such unit agreement.
(5) Pooling.--If separate tracts cannot be
independently developed and operated in conformity with
an established well spacing or development program, any
lease, or a portion thereof, may be pooled with other
lands, whether or not owned by the United States, under
a communitization or drilling agreement providing for
an apportionment of production or royalties among the
separate tracts of land comprising the drilling or
spacing unit when determined by theSecretary of the
Interior (in consultation with the owners of the other land) to be in
the public interest, and operations or production pursuant to such an
agreement shall be deemed to be operations or production as to each
such lease committed to the agreement.
(k) Exploration Incentives.--
(1) In general.--
(A) Waiver, suspension, or reduction.--To
encourage the greatest ultimate recovery of oil
or gas or in the interest of conservation, the
Secretary may waive, suspend, or reduce the
rental fees or minimum royalty, or reduce the
royalty on an entire leasehold (including on
any lease operated pursuant to a unit
agreement), whenever (after consultation with
the State of Alaska and the North Slope Borough
of Alaska and the concurrence of any Regional
Corporation for leases that include land that
was made available for acquisition by the
Regional Corporation under the provisions of
section 1431(o) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3101 et
seq.)) in the judgment of the Secretary it is
necessary to do so to promote development, or
whenever in the judgment of the Secretary the
leases cannot be successfully operated under
the terms provided therein.
(B) Applicability.--This paragraph applies to
a lease that is in effect on or after the date
of enactment of the Energy Policy Act of 2005.
(2) Suspension of operations and production.--The
Secretary may direct or assent to the suspension of
operations and production on any lease or unit.
(3) Suspension of payments.--If the Secretary, in the
interest of conservation, shall direct or assent to the
suspension of operations and production on any lease or
unit, any payment of acreage rental or minimum royalty
prescribed by such lease or unit likewise shall be
suspended during the period of suspension of operations
and production, and the term of such lease shall be
extended by adding any such suspension period to the
lease.
(l) Receipts.--All receipts from sales, rentals, bonuses,
and royalties on leases issued pursuant to this section shall
be paid into the Treasury of the United States: Provided, That
50 percent thereof shall be paid by the Secretary of the
Treasury semiannually, as soon thereafter as practicable after
March 30 and September 30 each year, to the State of Alaska
for:
(1) planning;
(2) construction, maintenance, and operation of
essential public facilities; and
(3) other necessary provisions of public service:
Provided further, That in the allocation of such funds,
the State shall give priority to use by subdivisions of
the State most directly or severely impacted by
development of oil and gas leased under this Act.
(m) Explorations.--Any agency of the United States and any
person authorized by the Secretary may conduct geological and
geophysical explorations in the National Petroleum Reserve in
Alaska which do not interfere with operations under any
contract maintained or granted previously. Any information
acquired in such explorations shall be subject to the
conditions of 43 U.S.C. 1352(a)(1)(A).
(n) Environmental Impact Statements.--
(1) Judicial review.--Any action seeking judicial
review of the adequacy of any program or site-specific
environmental impact statement under section 102 of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332) concerning oil and gas leasing in the National
Petroleum Reserve-Alaska shall be barred unless brought
in the appropriate District Court within 60 days after
notice of the availability of such statement is
published in the Federal Register.
(2) Initial lease sales.--The detailed environmental
studies and assessments that have been conducted on the
exploration program and the comprehensive land-use
studies carried out in response to sections 105 (b) and
(c) of Public Law 94-258 shall be deemed to have
fulfilled the requirements of section 102(2)(c) of the
National Environmental Policy Act (Public Law 91-190),
with regard to the first two oil and gas lease sales in
the National Petroleum Reserve-Alaska: Provided, That
not more than a total of 2,000,000 acres may be leased
in these two sales: Provided further, That any
exploration or production undertaken pursuant to this
section shall be in accordance with section 104(b).
(o) Regulations.--As soon as practicable after the date of
enactment of the Energy Policy Act of 2005, the Secretary shall
issue regulations to implement this section.
(p) Waiver of Administration for Conveyed Lands.--
(1) In general.--Notwithstanding section 14(g) of the
Alaska Native Claims Settlement Act (43 U.S.C.
1613(g)), the Secretary of the Interior shall waive
administration of any oil and gas lease to the extent
that the lease covers any land in the Reserve in which
all of the subsurface estate is conveyed to the Arctic
Slope Regional Corporation (referred to in this
subsection as the ``Corporation'').
(2) Partial conveyance.--
(A) In general.--In a case in which a
conveyance of a subsurface estate described in
paragraph (1) does not include all of the land
covered by the oil and gas lease, the person
that owns the subsurface estate in any
particular portion of the land covered by the
lease shall be entitled to all of the revenues
reserved under the lease as to that portion,
including, without limitation, all the royalty
payable with respect to oil or gas produced
from or allocated to that portion.
(B) Segregation of lease.--In a case
described in subparagraph (A), the Secretary of
the Interior shall--
(i) segregate the lease into 2
leases, 1 of which shall cover only the
subsurface estate conveyed to the
Corporation; and
(ii) waive administration of the
lease that covers the subsurface estate
conveyed to the Corporation.
(C) No change in lease obligations.--The
segregation of the lease described in
subparagraph (B)(i) has no effect on the
obligations of the lessee under either of the
resulting leases, including obligations
relating to operations, production, or other
circumstances (other than payment of rentals or
royalties).
(3) Authority to manage federally owned surface
estate.--Nothing in this subsection limits the
authority of the Secretary of the Interior to manage
the federally-owned surface estate within the Reserve.
AUTHORIZATION FOR APPROPRIATIONS
[Sec. 107] Sec. 108. (a) There are authorized to be
appropriated to the Department of the Interior such sums as may
be necessary to carry out the provisions of this title.
(b) If the Secretary of the Interior determines that there
is an immediate and substantial increase in the need for
municipal services and facilities in communities located on or
near the reserve as a direct result of the exploration and
study activities authorized by this title and that an unfair
and excessive financial burden will be incurred by such
communities as a result of the increased need for such services
and facilities, then he is authorized to assist such
communities in meeting the costs of providing increased
municipal services and facilities. The Secretary of the
Interior shall carry out the provisions of this section through
existing Federal programs and he shall consult with the heads
of the departments or agencies of the Federal Government
concerned with the type of services and facilities for which
financial assistance is being made available.
----------
NATURAL GAS ACT--ACT OF JUNE 21, 1938, CHAPTER 556, AS AMENDED (15
U.S.C. 717-717W)
* * * * * * *
EXPORTATION OR IMPORTATION OF NATURAL GAS
Sec. 3. * * *
(d) Except as specifically provided in this part, nothing
in this Act affects the rights of States under--
(1) the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.)
(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
(3) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.).
(e)(1) No facilities located onshore or in State waters for
the import of natural gas from a foreign country, or the export
of natural gas to a foreign country, shall be sited,
constructed, expanded, or operated, unless the Commission has
authorized such acts or operations.
(2) The Commission shall have the exclusive authority to
approve or deny an application for the siting, construction,
expansion, or operation of facilities located onshore or in
State waters for the import of natural gas from a foreign
county or the export of natural gas to a foreign country.
(3)(A) Except as provided in subparagraph (B), the
Commission may approve an application described in paragraph
(2), in whole or part, with such modifications and upon such
terms and conditions as the Commission finds appropriate.
(B) The Commission shall not--
(i) deny an application solely on the basis that the
applicant proposes to use the liquefied natural gas
import facility exclusively or partially for gas that
the applicant or an affiliate of the applicant will
supply to the facility; or
(ii) condition an order on--
(I) a requirement that the liquefied natural
gas import facility offer service to customers
other than the applicant, or any affiliate of
the applicant, securing the order;
(II) any regulation of the rates, charges,
terms, or conditions of service of the
liquefied natural gas import facility; or
(III) a requirement to file with the
Commission schedules or contracts related to
the rates, charges, terms, or conditions of
service of the liquefied natural gas import
facility.
(4) An order issued for a liquefied natural gas import
facility that also offers service to customers on an open
access basis shall not result in subsidization of expansion
capacity by existing customers, degradation of service to
existing customers, or undue discrimination against existing
customers as to their terms or conditions of service at the
facility, as all of those terms are defined by the Commission.
RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES
Sec. 4. * * *
(f)(1) In exercising its authority under this Act or the
Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the
Commission may authorize a natural gas company (or any person
that will be a natural gas company on completion of any
proposed construction) to provide storage and storage-related
services at market-based rates for new storage capacity placed
in service after the date of enactment of the Energy Policy Act
of 2005, notwithstanding the fact that the company is unable to
demonstrate that the company lacks market power, if the
Commission determines that--
(A) market-based rates are in the public interest and
necessary to encourage the construction of storage
capacity in areas needing storage services; and
(B) customers are adequately protected.
(2) The Commission shall ensure that reasonable terms and
conditions are in place to protect consumers.
(3) If the Commission authorizes a natural gas company to
charge market-based rates under this subsection, the Commission
shall review periodically (but not more frequentlythan
triennially) whether the market-based rate is just, reasonable, and not
unduly discriminatory or preferential.
Sec. 4A. It shall be unlawful for any entity, directly or
indirectly, to use or employ, in connection with the purchase
or sale of natural gas or the purchase or sale of
transportation services subject to the jurisdiction of the
Commission, any manipulative or deceptive device or contrivance
(as those terms are used in section 10(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78j(b)) in contravention of
such rules and regulations as the Commission may prescribe as
necessary in the public interest or for the protection of
natural gas ratepayers.
* * * * * * *
[HEARINGS; RULES OF PROCEDURE] PROCESS COORDINATION; HEARINGS; RULES OF
PROCEDURE
[Sec. 15. (a) Hearings under this act may be held before
the Commission, any member or members thereof, or any
representative of the Commission designated by it, and
appropriate records thereof shall be kept. In any proceeding
before it, the Commission in accordance with such rules and
regulations as it may prescribe, may admit as a party any
interested State, State commission, municipality or any
representative of interested consumers or security holders, or
any competitor of a party to such proceeding, or any other
person whose participation in the proceeding may be in the
public interest.]
[(b) All hearings, investigations, and proceedings under
this act shall be governed by rules of practice and procedure
to be adopted by the Commission, and in the conduct thereof the
technical rules of evidence need not be applied. No informality
in any hearing, investigation, or proceeding or in the manner
of taking testimony shall invalidate any order, decision, rule,
or regulation issued under the authority of this act.]
Sec. 15. (a) In this section:
(1) The term ``Federal authorization'' 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.
(2) The term ``Federal authorization'' includes any
permits, special use authorizations, certifications,
opinions, or other approvals as may be required under
Federal law with respect to an application for
authorization under section 3 or a certificate of
public convenience and necessity under section 7.
(b)(1) With respect to an application for Federal
authorization, the Commission shall, unless the Commission
orders otherwise, be the lead agency for purposes of complying
with the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
(2) As lead agency, the Commission, in consultation with
affected agencies, shall prepare a single environmental review
document, which shall be used as a basis for all decisions
under Federal law on--
(A) an application for authorization under section 3;
or
(B) a certificate of public convenience and necessity
under section 7.
(c)(1) The Commission shall, in consultation with agencies
responsible for Federal authorizations and with due
consideration of recommendations by the agencies, establish a
schedule for all Federal authorizations required to be
completed before an application under section 3 or 7 may be
approved.
(2) In establishing a schedule, the Commission shall comply
with applicable schedules established by Federal law.
(3) All Federal and State agencies with jurisdiction over
natural gas infrastructure shall seek to coordinate their
proceedings within the timeframes established by the Commission
with respect to an application for authorization under section
3 or a certificate of public convenience and necessity under
section 7.
(d)(1) In a case in which an administrative agency or
officer has failed to act by the deadline established by the
Commission under this section for deciding whether to issue the
authorization, the applicant or any State in which the facility
would be located may file an appeal with the President, who
shall, in consultation with the affected agency, take action on
the pending application.
(2) Based on the overall record and in consultation with
the affected agency, the President may--
(A) issue the necessary authorization with any
appropriate conditions; or
(B) deny the application.
(3) Not later than 90 days after the filing of an appeal,
the President shall issue a decision as to that appeal.
(4) In making a decision under this subsection, the
President shall comply with applicable requirements of Federal
law, including--
(A) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.)
(B) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
(C) the National Forest Management Act of 1976 (16
U.S.C. 472a et seq.);
(D) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(E) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.);
(F) the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.); and
(G) the Clean Air Act (42 U.S.C. 7401 et seq.).
(e) Hearings under this act may be held before the
Commission, any member or members thereof, or any
representative of the Commission designated by it, and
appropriate records thereof shall be kept. In any proceeding
before it, the Commission in accordance with such rules and
regulations as it may prescribe, may admit as a party any
interested State, State commission, municipality or any
representative of interested consumers or security holders, or
any competitor of a party to such proceeding, or any other
person whose participation in the proceeding may be in the
public interest.
(f) All hearings, investigations, and proceedings under
this act shall be governed by rules of practice and procedure
to be adopted by the Commission, and in the conduct thereof the
technical rules of evidence need not be applied. No informality
in any hearing, investigation, or proceeding or in the manner
of taking testimony shall invalidate any order, decision, rule,
or regulation issued under the authority of this act.
* * * * * * *
ENFORCEMENT OF ACT; REGULATIONS AND ORDERS
Sec. 20. * * *
Section 20 of the Natural Gas Act (15 U.S.C. 717s) is
amended by adding at the end the following:
(d) In any proceedings under subsection (a), the court may
prohibit, conditionally or unconditionally, and permanently or
for such period of time as the court determines, any person who
is engaged or has engaged in practices constituting a violation
of section 4A (including related rules and regulations) from--
(1) acting as an officer or director of a natural gas
company; or
(2) engaging in the business of--
(A) the purchasing or selling of natural gas;
or
(B) the purchasing or selling of transmission
services subject to the jurisdiction of the
Commission.
GENERAL PENALTIES
Sec. 21. (a) Any person who willfully and knowingly does or
causes or suffers to be done any act, matter, or thing in this
act prohibited or declared to be unlawful, or who willfully and
knowingly omits or fails to do any act, matter, or thing in
this act required to be done, or willfully and knowingly causes
or suffers such omission or failure, shall, upon conviction
thereof, be punished by a fine of not more than [$5,000]
$1,000,000 or by imprisonment for not more than [two years] 5
years, or both.
(b) Any person who willfully and knowingly violates any
rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this act, shall,
in addition to any other penalties provided by law, be punished
upon conviction thereof by a fine of not exceeding [$500]
$50,000 for each and every day during which such offense
occurs.
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.
NATURAL GAS MARKET TRANSPARENCY RULES
Sec. 23. (a)(1) The Commission may issue such rules as the
Commission considers to be appropriate to establish an
electronic information system to provide the Commission and the
public with access to such information as is necessary to
facilitate price transparency and participation in markets for
the sale or transportation of natural gas in interstate
commerce.
(2) The system under paragraph (1) shall provide, on a
timely basis, information about the availability and prices of
natural gas sold at wholesale and in interstate commerce to the
Commission, State commissions, buyers and sellers of wholesale
natural gas, and the public.
(3) The Commission may--
(A) obtain information described in paragraph (2)
from any market participant; and
(B) rely on an entity other than the Commission to
receive and make public the information.
(b)(1) Rules described in subsection (a)(1), if adopted,
shall exempt from disclosure information the Commission
determines would, if disclosed, be detrimental to the operation
of an effective market or jeopardize system security.
(2) In determining the information to be made available
under this section and time to make the information available,
the Commission shall seek to ensure that consumers and
competitive markets are protected from the adverse effects of
potential collusion or other anticompetitive behaviors that can
be facilitated by untimely public disclosure of transaction-
specific information.
(c)(1) This section shall not affect the exclusive
jurisdiction of the Commodity Futures Trading Commission with
respect to accounts, agreements, contracts, or transactions in
commodities under the Commodity Exchange Act (7 U.S.C. 1 et
seq.).
(2) Any request for information to a designated contract
market, registered derivatives transaction execution facility,
board of trade, exchange, or market involving accounts,
agreements, contracts, or transactions in commodities
(including natural gas, electricity and other energy
commodities) within the exclusive jurisdiction of the Commodity
Futures Trading Commission shall be directed to the Commodity
Futures Trading Commission, which shall cooperate in responding
to any information request by the Commission.
(d) In carrying out this section, the Commission shall
not--
(1) compete with, or displace from the market place, any
price publisher(including any electronic price publisher);
(2) regulate price publishers (including any
electronic price publisher); or
(3) impose any requirements on the publication of
information by price publishers (including any
electronic price publisher).
(e)(1) The Commission shall not condition access to
interstate pipeline transportation on the reporting
requirements of this section.
(2) The Commission shall not require natural gas producers,
processors, or users who have a de minimis market presence to
comply with the reporting requirements of this section.
(f)(1) Except as provided in paragraph (2), no person shall
be subject to any civil penalty under this section with respect
to any violation occurring more than 3 years before the date on
which the person is provided notice of the proposed penalty
under section 22(b).
(2) Paragraph (1) shall not apply in any case in which the
Commission finds that a seller that has entered into a contract
for the transportation or sale of natural gas subject to the
jurisdiction of the Commission has engaged in fraudulent market
manipulation activities materially affecting the contract in
violation of section 4A.
JURISDICTION OF OFFENSES; ENFORCEMENT OF LIABILITIES AND DUTIES
Sec. [22] 24. The District Courts of the United States, the
District Court of the United States for the District of
Columbia, and the United States courts of any Territory or
other place subject to the jurisdiction of the United States
shall have exclusive jurisdiction of violations of this act or
the rules, regulations, and orders thereunder, and of all suits
in equity and actions at law, brought to enforce any liability
or duty created by, or to enjoin any violation of, this act or
any rule, regulation, or order thereunder. Any criminal
proceeding shall be brought in the district wherein any act or
transaction constituting the violation occurred. Any suit or
action to enforce any liability or duty created by, or to
enjoin any violation of, this act or any rule, regulation, or
order thereunder may be brought in any such district or in the
district wherein the defendant is an inhabitant, and process in
such cases may be served wherever the defendant may be found.
Judgments and decrees so rendered shall be subject to review as
provided in [former] sections 128 and 240 of the Judicial Code,
as amended (U.S.C., title 28, secs. 225 and 347). No costs
shall be assessed against the Commission in any judicial
proceeding by or against the Commission under this act.
SEPARABILITY OF PROVISIONS
Sec. [23] 25. If any provision of this act, or the
application of such provision to any person or circumstance,
shall be held invalid, the remainder of the act, and the
application of such provision to persons or circumstances other
than those as to which it is held invalid, shall not be
affected thereby.
Sec. [24] 26. This act may be cited as the ``Natural Gas
Act.''
----------
NATURAL GAS POLICY ACT OF 1978--PUBLIC LAW 95-621
SEC. 504. ENFORCEMENT. * * *
(b) Civil Enforcement.-- * * *
(6) Civil penalties.
(A) In general.--Any person who knowingly
violates any provision of this Act, or any
provision of any rule or order under this Act,
shall be subject to--
(i) except as provided in clause (ii)
a civil penalty, which the Commission
may assess, of not more than [$5,000]
$1,000,000 for any one violation; and
(ii) a civil penalty, which the
President may assess, of not more than
[$25,000] $1,000,000, in the case of
any violation of an order under section
302 or an order or supplemental order
under section 303.
* * * * * * *
(c) Criminal Penalties.--
(1) Violations of act.--Except in the case of
violations covered under paragraph (3), any person who
knowingly and willfully violates any provision of this
Act shall be subject to--
(A) a fine of not more than [$5,000]
$1,000,000; or
(B) imprisonment for not more than [two
years] 5 years; or
(C) both such fine and such imprisonment.
(2) Violation of rules or orders generally.--Except
in the case of violations covered under paragraph (3),
any person who knowingly and willfully violates any
rule or order under this Act (other than an order of
the Commission assessing a civil penalty under
subsection (b)(4)(E)), shall be subject to a fine of
not more than [$500] $50,000 for each violation.
----------
COASTAL ZONE MANAGEMENT ACT OF 1972--PUBLIC LAW 92-583, APPROVED OCT.
27, 1972, 86 STAT. 1280--AS AMENDED THROUGH PUBLIC LAW 104-150, JUNE 3,
1996
* * * * * * *
[Sec. 319. (a) Notice.--The Secretary shall publish in the
Federal Register a notice indicating when the decision record
has been closed on any appeal to the Secretary taken from a
consistency determination under section 307(c) or (d). No later
than 90 days after the date of publication of this notice, the
Secretary shall--
(1) issue a final decision in the appeal; or
(2) publish a notice in the Federal Register
detailing why a decision cannot be issued within the
90-day period.
(b) Deadline.--In the case where the Secretary publishes a
notice under subsection (a)(2), the Secretary shall issue a
decision in any appeal filed under section 307 no later than 45
days after the date of the publication of the notice.
(c) Application.--This section applies to appeals initiated
by the Secretary and appeals filed by an applicant.]
Sec. 319. (a) Notice.--Not later than 30 days after the
date of the filing of an appeal to the Secretary of a
consistency determination under section 307, the Secretary
shall publish an initial notice in the Federal Register.
(b) Closure of Record.--
(1) In general.--Not later than the end of the 270-
day period beginning on the date of publication of an
initial notice under subsection (a), except as provided
in paragraph (3), the Secretary shall immediately close
the decision record and receive no more filings on the
appeal.
(2) Notice.--After closing the administrative record,
the Secretary shall immediately publish a notice in the
Federal Register that the administrative record has
been closed.
(3) Exception.--
(A) In general.--Subject to subparagraph (B),
during the 270-day period described in
paragraph (1), the Secretary may stay the
closing of the decision record--
(i) for a specific period mutually
agreed to in writing by the appellant
and the State agency; or
(ii) as the Secretary determines
necessary to receive, on an expedited
basis--
(I) any supplemental
information specifically
requested by the Secretary to
complete a consistency review
under this Act; or
(II) any clarifying
information submitted by a
party to the proceeding related
to information already existing
in the sole record.
(B) Applicability.--The Secretary may only
stay the 270-day period described in paragraph
(1) for a period not to exceed 60 days.
(c) Deadline for Decision.--
(1) In general.--Not later than 90 days after the
date of publication of a Federal Register notice
stating when the decision record for an appeal has been
closed, the Secretary shall issue a decision or publish
a notice in the Federal Register explaining why a
decision cannot be issued at that time.
(2) Subsequent decision.--Not later than 45 days
after the date of publication of a Federal Register
notice explaining why a decision cannot be issued
within the 90-day period, the Secretary shall issue a
decision.
PUBLIC LAW 106-511 (114 Stat. 2376)
* * * * * * *
TITLE VI--SOUTHEASTERN ALASKA INTERTIE SYSTEM CONSTRUCTION; NAVAJO
ELECTRIFICATION DEMONSTRATION PROGRAM
* * * * * * *
SEC. 602. NAVAJO ELECTRIFICATION DEMONSTRATION PROGRAM.
(a) Establishment.--The Secretary of Energy shall establish
[a 5-year program] 10-year to assist the Navajo Nation to meet
its electricity needs. The purpose of the program shall be to
provide electric power to the estimated 18,000 occupied
structures on the Navajo Nation that lack electric power. The
goal of the program shall be to ensure that every household on
the Navajo Nation that requests it has access to a reliable and
affordable source of electricity by the year [2006.] 2011.
* * * * * * *
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out this
section $15,000,000 for each of the fiscal years 2002 through
[2006.] 2011.
----------
THE NATIVE AMERICAN HOUSING AND SELF-DETERMINATION ACT OF 1996--PUBLIC
LAW 104-330, AS AMENDED (25 U.S.C. 4101 ET SEQ.)
* * * * * * *
SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES. * * *
(1) * * *
(2) Development.--The acquisition, new construction,
reconstruction, or moderate or substantial
rehabilitation of affordable housing, which may include
real property acquisition, site improvement,
development of utilities and utility services,
conversion, demolition, financing, administration and
planning, improvement to achieve greater energy
efficiency and other related activities.
---------- --
--------
ATOMIC ENERGY ACT OF 1954--ACT OF AUGUST 1, 1946, CHAPTER 724, AS
AMENDED BY THE ACT OF AUGUST 30, 1954, CHAPTER 1073, AS AMENDED (42
U.S.C. 2011 ET SEQ.)
* * * * * * *
CHAPTER 11. INTERNATIONAL ACTIVITIES
* * * * * * *
SEC. 129. CONDUCT RESULTING IN TERMINATION OF NUCLEAR EXPORTS.
a. No nuclear materials and equipment or sensitive nuclear
technology shall be exported to--
(1) any non-nuclear-weapon state that is found by the
President to have, at any time after the effective date
of this section, the effective date was March 10, 1978.
(A) detonated a nuclear explosive device; or
(B) terminated or abrogated IAEA safeguards;
or
(C) materially violated an IAEA safeguards
agreement; or
(D) engaged in activities involving source or
special nuclear material and having direct
significance for the manufacture or acquisition
of nuclear explosive devices, and has failed to
take steps which, in the President's judgment,
represent sufficient progress toward
terminating such activities; or
(2) any nation or group of nations that is found by
the President to have, at any time after the effective
date of this section,
(A) materially violated an agreement for
cooperation with the United States, or, with
respect to material or equipment not supplied
under an agreement for cooperation, materially
violated the terms under which such material or
equipment was supplied or the terms of any
commitments obtained with respect thereto
pursuant to section 402(a) of the Nuclear Non-
Proliferation Act of 1978; or
(B) assisted, encouraged, or induced any non-
nuclear-weapon state to engage in activities
involving source or special nuclear material
and having direct significance for the
manufacture or acquisition of nuclear explosive
devices, and has failed to take steps which, in
the President's judgment, represent sufficient
progress toward terminating such assistance,
encouragement, or inducement; or
(C) entered into an agreement after the date
of enactment of this section for the transfer
of reprocessing equipment, materials, or
technology to the sovereign control of a non-
nuclear-weapon state except in connection with
an international fuel cycle evaluation in which
the United States is a participant or pursuant
to a subsequent international agreement or
understanding to which the United States
subscribes;
unless the President determines that cessation of such exports
would be seriously prejudicial to the achievement of United
States non-proliferation objectives or otherwise jeopardize the
common defense and security: Provided, That prior to the
effective date of any such determination, the President's
determination, together with a report containing the reasons
for his determination, shall be submitted to the Congress and
referred to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the
Senate for a period of sixty days of continuous session (as
defined in subsection 130 g. of this Act), but any such
determination shall not become effective if during such sixty-
day period the Congress adopts a concurrent resolution stating
in substance that it does not favor the determination. Any such
determination shall be considered pursuant to the procedures
set forth in section 130 of this Act for the consideration of
Presidential submissions.
b.(1)(A) Notwithstanding any other provision of law,
including section 121, and except as provided in paragraphs (2)
and (3), no nuclear materials and equipment or sensitive
nuclear technology, including items and assistance authorized
by section 57 b. and regulated under part 810 of title 10, Code
of Federal Regulations (or a successor regulation), and
nuclear-related items on the Commerce Control List maintained
under part 774 of title 15 of the Code of Federal Regulations
(or a successor regulation), shall be exported or reexported,
or transferred or retransferred, whether directly or
indirectly, and no Federal agency shall issue any license,
approval, or authorization for the export or reexport, or
transfer, or retransfer, whether directly or indirectly, of the
items or assistance described in this paragraph to any country
the government of which has been identified by the Secretary of
State as engaged in state sponsorship of terrorist activities.
(B) Countries described in subparagraph (A) specifically
include any country the government of which has been determined
by the Secretary of State to have repeatedly provided support
for acts of international terrorism under--
(i) section 620A(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2371(a));
(ii) section 6(j)(1) of the Export Administration Act
of 1979 (50 U.S.C. App. 2405(j)(1)); or
(iii) section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)).
(2) This subsection does not apply to exports, reexports,
transfers, or retransfers of radiation monitoring technologies,
surveillance equipment, seals, cameras, tamper-indication
devices, nuclear detectors, monitoring systems, or equipment
necessary to safely store, transport, or remove hazardous
materials, whether such items, services, or information are
regulated by the Department of Energy, the Department of
Commerce, or the Commission, except to the extent that the
technologies, equipment, seals, cameras, devices, detectors, or
systems are available for use in the design or construction of
nuclear reactors or nuclear weapons.
(3) The President may waive the application of paragraph
(1) to a country if the President determines and certifies to
Congress that--
(A) the waiver will not result in any increased risk
that the country receiving the waiver will acquire
nuclear weapons, nuclear reactors, or any materials or
components of nuclear weapons; and
(B)(i) the government of the country has not within
the preceding 12-month period willfully aided or
abetted the international proliferation of nuclear
explosive devices to individuals or groups or willfully
aided and abetted an individual or groups in acquiring
unsafeguarded nuclear materials;
(ii) in the judgment of the President, the government
of the country has provided adequate, verifiable
assurances that the country will cease its support for
acts of international terrorism;
(iii) the waiver of paragraph (1) is in the vital
national security interest of the United States; or
(iv) the waiver of paragraph (1) is essential to
prevent or respond to a serious radiological hazard in
the country receiving the waiver that may or does
threaten public health and safety.
* * * * * * *
SEC. 134. FURTHER RESTRICTIONS ON EXPORTS.
[a. The Commission may issue a license for the export of
highly enriched uranium to be used as a fuel or target in a
nuclear research or test reactor only if, in addition to any
other requirement of this Act, the Commission determines that--
[(1) there is no alternative nuclear reactor fuel or
target enriched in the isotope 235 to a lesser percent
than the proposed export, that can be used in that
reactor;
[(2) the proposed recipient of that uranium has
provided assurances that, whenever an alternative
nuclear reactor fuel or target can be used in that
reactor, it will use that alternative in lieu of highly
enriched uranium; and
[(3) the United States Government is actively
developing an alternative nuclear reactor fuel or
target that can be used in that reactor.]
a. Definitions.--In this section--''
(1) the term ``alternative nuclear reactor fuel or
target'' means a nuclear reactor fuel or target which
is enriched to less than 20 percent in the isotope U-
235;
(2) the term ``highly enriched uranium'' means
uranium enriched to 20 percent or more in the isotope
U-235; and
(3) a fuel or target ``can be used'' in a nuclear
research or test reactor if--
(A) the fuel or target has been qualified by
the Reduced Enrichment Research and Test
Reactor Program of the Department of Energy,
and
(B) use of the fuel or target will permit the
large majority of ongoing and planned
experiments and isotope production to be
conducted in the reactor without a large
percentage increase in the total cost of
operating the reactor.
[b. As used in this section--
[(1) the term ``alternative nuclear reactor fuel or
target'' means a nuclear reactor fuel or target which
is enriched to less than 20 percent in the isotope U-
235;
[(2) the term ``highly enriched uranium'' means
uranium enriched to 20 percent or more in the isotope
U-235; and
[(3) a fuel or target ``can be used'' in a nuclear
research or test reactor if--
[(A) the fuel or target has been qualified by
the Reduced Enrichment Research and Test
Reactor Program of the Department of Energy,
and
[(B) use of the fuel or target will permit
the large majority of ongoing and planned
experiments and isotope production to be
conducted in the reactor without a large
percentage increase in the total cost of
operating the reactor.]
b. Restrictions on Exports.--Except as provided in
subsection c., the Commission; and may issue a license for the
export of highly enriched uranium to be used as a fuel or
target in a nuclear research or test reactor only if, in
addition to any other requirement of this Act, the Commission
determines that--
(1) there is no alternative nuclear reactor fuel or
target enriched in the isotope 235 to a lesser percent
than the proposed export, that can be used in that
reactor;
(2) the proposed recipient of that uranium has
provided assurances that, whenever an alternative
nuclear reactor fuel or target can be used in that
reactor, it will use that alternative in lieu of highly
enriched uranium; and
(3) the United States Government is actively
developing an alternative nuclear reactor fuel or
target that can be used in that reactor.
c. Medical Isotope Production.--
(1) Definitions.--In this subsection:
(A) 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.
(B) 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--
(I) therapeutic purposes; or
(II) enabling the production
of a useful image for use in a
diagnosis of a medical
condition.
(C) 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 b.), the Commission determines that--
(A) a recipient country that supplies an
assurance letter to the United States in
connection with the consideration by the
Commission of the export license application
has informed the United States that any
intermediate consigneesand 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 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
the 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 under which the National Academy of
Sciences shall 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 being made by the
Department of Energy and other agencies
and entities 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 the 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, not later than the date
that is 4 years after the date of
submission of the report, domestic
requirements for medical isotopes
without use of highly enriched uranium
consistent with the feasibility
criteria described in subparagraph (B).
(5) Second report to congress.--If the National
Academy of Sciences determines in the study under
paragraph (4)(A) 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 use,
the Secretary shall submit to Congress a certification
to that effect.
(7) Termination of review.--After the Secretary
submits a certification under paragraph (6), the
Commission shall, by rule, terminate the review by the
Commission of export license applications under this
subsection.
* * * * * * *
CHAPTER 14. GENERAL AUTHORITY
* * * * * * *
SEC. 170. INDEMNIFICATION AND LIMITATION OF LIABILITY.
* * * * * * *
(b) Amount and Type of Financial Protection for
Licensees.--(1) The amount of primary financial protection
required shall be the amount of liability insurance available
from private sources, except that the Commission may establish
a lesser amount on the basis of criteria set forth in writing,
which it may revise from time to time, taking into
consideration such factors as the following: (A) the cost and
terms of private insurance, (B) the type, size, and location of
the licensed activity and other factors pertaining to the
hazard, and (C) the nature and purpose of the licensed
activity: Provided, That for facilities designed for producing
substantial amounts of electricity and having a rated capacity
of 100,000 electrical kilowatts or more, the amount of primary
financial protection required shall be the maximum amount
available at reasonable cost and on reasonable terms from
private sources (excluding the amount of private liability
insurance available under the industry retrospective rating
plan required in this subsection). Such primary financial
protection may include private insurance, private contractual
indemnities, self-insurance, other proof of financial
responsibility, or a combination of such measures and shall be
subject to such terms and conditions as the Commission may, by
rule, regulation, or order, prescribe. The Commission shall
require licensees that are required to have and maintain
primary financial protection equal to the maximum amount of
liability insurance available from private sources to maintain,
in addition to such primary financial protection, private
liability insurance available under an industry retrospective
rating plan providing for premium charges deferred in whole or
major part until public liability from a nuclear incident
exceeds or appears likely to exceed the level of the primary
financial protection required of the licensee involved in the
nuclear incident: Provided, That such insurance is available
to, and required of, all of the licensees of such facilities
without regard to the manner in which they obtain other types
or amounts of such primary financial protection: And provided
further: That the maximum amount of the standard deferred
premium that may be charged a licensee following any nuclear
incident under such a plan shall not be more than [
$63,000,000] $95,800,000 (subject to adjustment for inflation
under subsection t.), but not more than [$10,000,000 in any 1
year] $15,000,000 in any 1 year (subject to adjustment for
inflation under subsection t.), for each facility for which
such licensee is required to maintain the maximum amount of
primary financial protection: And provided further, That the
amount which may be charged a licensee following any nuclear
incident shall not exceed the licensee's pro rata share of the
aggregate public liability claims and costs (excluding legal
costs subject to subsection o. (1)(D), payment of which has not
been authorized under such subsection) arising out of the
nuclear incident. Payment of any State premium taxes which may
be applicable to any deferred premium provided for in this Act
shall be the responsibility of the licensee and shall not be
included in the retrospective premium established by the
Commission.
* * * * * * *
(5)(A) For purposes of this section only, the Commission
shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
(B) A combination of facilities referred to in subparagraph
(A) is 2 or more facilities located at a single site, each of
which has a rated capacity of not less than 100,000 electrical
kilowatts and not more than 300,000 electrical kilowatts, with
a combined rated capacity of not more than 1,300,000 electrical
kilowatts.
(c) Indemnification of [Licenses] Licensees by Nuclear
Regulatory Commission.--The Commission shall, with respect to
licenses issued between August 30, 1954, and [December 31,
2003] December 31, 2025, for which it requires financial
protection of less than $560,000,000, agree to indemnify and
hold harmless the licensee and other persons indemnified, as
their interest may appear, from public liability arising from
nuclear incidents which is in excess of the level of financial
protection required of the licensee. The aggregate indemnity
for all persons indemnified in connection with each nuclear
incident shall not exceed $500,000,000, excluding costs of
investigating and settling claims and defending suits for
damage: Provided, however, That this amount of indemnity shall
be reduced by the amount that the financial protection required
shall exceed $60,000,000. Such a contract of indemnification
shall cover public liability arising out of or in connection
with the licensed activity. With respect to any production or
utilization facility for which a construction permit is issued
between August 30, 1954, and [December 31, 2003] December 31,
2025, the requirements of this subsection shall apply to any
license issued for such facility subsequent to [December 31,
2003] December 31, 2025.
(d) Indemnification of Contractors by Department of
Energy.--(1)(A) In addition to any other authority the
Secretary of Energy (in this section referred to as the
``Secretary'') may have, the Secretary shall, until [December
31, 2006] December 31, 2025, enter into agreements of
indemnification under this subsection with any person who may
conduct activities under a contract with the Department of
Energy that involve the risk of public liability and that are
not subject to financial protection requirements under
subsection b. or agreements of indemnification under subsection
c. or k.
* * * * * * *
[(2) In agreements of indemnification entered into under
paragraph (1), the Secretary 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 shall indemnify the persons
indemnified against such claims above the amount of the
financial protection required, to the full extent of the
aggregate public liability of the persons indemnified for each
nuclear incident, including such legal costs of the contractor
as are approved by the Secretary.
[(3)(A) Notwithstanding paragraph (2), if the maximum
amount of financial protection required of the contractor,
shall at all times remain equal to or greater than the maximum
amount of financial protection required of licensees under
subsection b.
[(B) The amount of indemnity provided contractors under
this subsection shall not, at any time, be reduced in the event
that the maximum amount of financial protection required of
licensees is reduced.
[(C) All agreements of indemnification under which the
Department of Energy (or its predecessor agencies) may be
required to indemnify any person, shall be deemed to be
amended, on the date of the enactment of the Price-Anderson
Amendments Act of 1988, to reflect the amount of indemnity for
public liability and any applicable financial protection
required of the contractor under this subsection on such date.]
(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
(A) may require the contractor to provide and
maintain financial protection of such a type and in
such amounts as the Secretary determines to be
appropriate to cover public liability arising out of or
in connection with the contractual activity; and
(B) shall indemnify the persons indemnified against
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 expenses incurred by the
contractor as are approved by the Secretary.
(3) All agreements of indemnification under which the
Department of Energy (or predecessor agencies) may be required
to indemnify any person under this section shall be 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.
* * * * * * *
(5) In the case of nuclear incidents occurring outside the
United States, the amount of the indemnity provided by the
Secretary under this subsection shall not exceed [$100,000,000]
$500,000,000.
* * * * * * *
(e) Limitation on Aggregate Public Liability.--(1) The
aggregate public liability for a single nuclear incident of
persons indemnified, including such legal costs as are
authorized to be paid under subsection o. (1)(D), shall not
exceed--
(A) in the case of facilities designed for producing
substantial amounts of electricity and having a rated
capacity of 100,000 electrical kilowatts or more, the
maximum amount of financial protection required of such
facilities under subsection b. (plus any surcharge
assessed under subsection o. (1)(E));
(B) in the case of contractors with whom the
Secretary has entered into an agreement of
indemnification under subsection d., [the maximum
amount of financial protection required under
subsection b. or] the amount of indemnity and financial
protection that may be required under [paragraph (3) of
subsection d., whichever amount is more] paragraph (2)
of subsection d.; and
(C) in the case of all licensees of the Commission
required to maintain financial protection under this
section--
(i) $500,000,000, together with the amount of
financial protection required of the licensee;
or
(ii) if the amount of financial protection
required of the licensee exceeds $60,000,000,
$560,000,000 or the amount of financial
protection required of the licensee, whichever
amount is more.
* * * * * * *
(4) With respect to any nuclear incident occurring outside
of the United States to which an agreement of indemnification
entered into under the provisions of subsection d. is
applicable, such aggregate public liability shall not exceed
the amount of [$100,000,000] $500,000,000, together with the
amount of financial protection required of the contractor.
* * * * * * *
(k) Exemption from Financial Protection Requirement for
Nonprofit Educational Institutions.--With respect to any
license issued pursuant to section 53, 63, 81, 104 a., or 104
c. for the conduct of educational activities to a person found
by the Commission to be a nonprofit educational institution,
the Commission shall exempt such licensee from the financial
protection requirement of subsection a. With respect to
licenses issued between August 30, 1954, and [August 1, 2002]
December 31, 2025, for which the Commission grants such
exemption:
(1) the Commission shall agree to indemnify and hold
harmless the licensee and other persons indemnified, as
their interests may appear, from public liability in
excess of $250,000 arising from nuclear incidents. The
aggregate indemnity for all persons indemnified in
connection with each nuclear incident shall not exceed
$500,000,000, including such legal costs of the
licensee as are approved by the Commission;
(2) such contracts of indemnification shall cover
public liability arising out of or in connection with
the licensed activity; and shall include damage to
property of persons indemnified, except property which
is located at the site of and used in connection with
the activity where the nuclear incident occurs; and
(3) such contracts of indemnification, when entered
into with a licensee having immunity from public
liability because it is a State agency, shall provide
also that the Commission shall make payments under the
contract on account of activities of the licensee in
the same manner and to the same extent as the
Commission would be required to do if the licensee were
not such a State agency.
Any licensee may waive an exemption to which it is entitled
under this subsection. With respect to any production or
utilization facility for which a construction permit is issued
between August 30, 1954, and [August 1, 2002] December 31,
2025, the requirements of this subsection shall apply to any
license issued for such facility subsequent to August 1, 2002.
* * * * * * *
(p) Reports to Congress.--The Commission and the Secretary
shall submit to the Congress by [August 1, 1998] December 31,
2021, detailed reports concerning the need for continuation or
modification of the provisions of this section, taking into
account the condition of the nuclear industry, availability of
private insurance, and the state of knowledge concerning
nuclear safety at that time, among other relevant factors, and
shall include recommendations as to the repeal or modification
of any of the provisions of this section.
* * * * * * *
(t) Inflation Adjustment.--(1) The Commission shall adjust
the amount of the maximum total and annual standard deferred
premium under subsection b. (1) not less than once during each
5-year period following [the date of the enactment of the
Price-Anderson Amendments Act of 1988] August 20, 2003, in
accordance with the aggregate percentage change in the Consumer
Price Index since--
(A) [such date of enactment] August 20, 2003, in the
case of the first adjustment under this subsection; or
(B) the previous adjustment under this subsection.
(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.
[(2)] (3) For purposes of this subsection, the term
``Consumer Price Index'' means the Consumer Price Index for all
urban consumers published by the Secretary of Labor.
* * * * * * *
SEC. 234A. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF DEPARTMENT OF
ENERGY SAFETY REGULATIONS.
* * * * * * *
(b)(1) The Secretary shall have the power to compromise,
modify or remit, with or without conditions, such civil
penalties and to prescribe regulations as he may deem necessary
to implement this section.
(2) In determining the amount of any civil penalty under
this subsection, the Secretary shall take into account the
nature, circumstances, extent, and gravity of the violation or
violations and, with respect to the violator, ability to pay,
effect on ability to continue to do business, any history of
prior such violations, the degree of culpability, and such
other matters as justice may require. [In implementing this
section, the Secretary shall determine by rule whether
nonprofit educational institutions should receive automatic
remission of any penalty under this section.]
* * * * * * *
[(d) The provisions of this section shall not apply to:
[(1) The University of Chicago (and any
subcontractors or suppliers thereto) for activities
associated with Argonne National Laboratory;
[(2) The University of California (and any
subcontractors or suppliers thereto) for activities
associated with Los Alamos National Laboratory,
Lawrence Livermore National Laboratory, and Lawrence
Berkeley National Laboratory;
[(3) American Telephone and Telegraph Company and its
subsidiaries (and any subcontractors or suppliers
thereto) for activities associated with Sandia National
Laboratories;
[(4) Universities Research Association, Inc. (and any
subcontractors or suppliers thereto) for activities
associated with FERMI National Laboratory;
[(5) Princeton University (and any subcontractors or
suppliers thereto) for activities associated with
Princeton Plasma Physics Laboratory;
[(6) The Associated Universities, Inc. (and any
subcontractors or suppliers thereto) for activities
associated with the Brookhaven National Laboratory; and
[(7) Battelle Memorial Institute (and any
subcontractors or suppliers thereto) for activities
associated with Pacific Northwest Laboratory.]
(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 one-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.
---------- --
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TITLE 23, UNITED STATES CODE--PUBLIC LAW 109-13
HIGHWAYS
* * * * * * *
CHAPTER 1. FEDERAL-AID HIGHWAYS
* * * * * * *
Subchapter I--General Provisions
* * * * * * *
Sec. 127. Vehicle weight limitations--Interstate System
(a) In General.--
(1) No funds shall be apportioned in any fiscal year
under section 104(b)(1) of this title [23 USCS
Sec. 104(b)(1)] to any State which does not permit the
use of the National System of Interstate and Defense
Highways [The Dwight D. Eisenhower System of Interstate
and Defense Highways] within its boundaries by vehicles
with a weight of twenty thousand pounds carried on any
one axle, including enforcement tolerances, or with a
tandem axle weight of thirty-four thousand pounds,
including enforcement tolerances, or a gross weight of
at least eighty thousand pounds for vehicle
combinations of five axles or more.
(2) However, the maximum gross weight to be allowed
by any State for vehicles using the National System of
Interstate and Defense Highways [The Dwight D.
Eisenhower System of Interstate and Defense Highways]
shall be twenty thousand pounds carried on one axle,
including enforcement tolerances, and a tandem axle
weight of thirty-four thousand pounds, including
enforcement tolerances and with an overall maximum
gross weight, including enforcement tolerances, on a
group of two or more consecutive axles produced by
application of the following formula:
where W equals overall gross weight on any group of two or more
consecutive axles to the nearest five hundred pounds, L equals
distance in feet between the extreme of any group of two or
more consecutive axles, and N equals number of axles in group
under consideration, except that two consecutive sets of tandem
axles may carry a gross load of thirty-four thousand pounds
each providing the overall distance between the first and last
axles of such consecutive sets of tandem axles is (1) thirty-
six feet or more, or (2) in the case of a motor vehicle hauling
any tank trailer, dump trailer, or ocean transport container
before September 1, 1989, is 30 feet or more: Provided, That
such overall gross weight may not exceed eighty thousand
pounds, including all enforcement tolerances, except for
vehicles using Interstate Route 29 between Sioux City, Iowa,
and the border between Iowa and South Dakota or vehicles using
Interstate Route 129 between Sioux City, Iowa, and the border
between Iowa and Nebraska, and except for those vehicles and
loads which cannot be easily dismantled or divided and which
have been issued special permits in accordance with applicable
State laws, or the corresponding maximum weights permitted for
vehicles using the public highways of such State under laws or
regulations established by appropriate State authority in
effect on July 1, 1956, except in the case of the overall gross
weight of any group of two or more consecutive axles on any
vehicle (other than a vehicle comprised of a motor vehicle
hauling any tank trailer, dump trailer, or ocean transport
container on or after September 1, 1989), on the date of
enactment of the Federal-Aid Highway Amendments of 1974
[enacted Jan. 4, 1975], whichever is the greater.
(3) Any amount which is withheld from apportionment
to any State pursuant to the foregoing provisions shall
lapse if not released and obligated within the
availability period specified in section 118(b)(1) of
this title.
(4) This section shall not be construed to deny
apportionment to any State allowing the operation
within such State of any vehicles or combinations
thereof, other than vehicles or combinations subject to
subsection (d) of this section, which the State
determines could be lawfully operated within such State
on July 1, 1956, except in the case of the overall
gross weight of any group of two or more consecutive
axles, on the date of enactment of the Federal-Aid
Highway Amendments of 1974 [enacted Jan. 4, 1975].
(5) With respect to the State of Hawaii, laws or
regulations in effect on February 1, 1960, shall be
applicable for the purposes of this section in lieu of
those in effect on July 1, 1956.
(6) With respect to the State of Colorado, vehicles
designed to carry 2 or more precast concrete panels
shall be considered a nondivisible load.
(7) With respect to the State of Michigan, laws or
regulations in effect on May 1, 1982, shall be
applicable for the purposes of this subsection.
(8) With respect to the State of Maryland, laws and
regulations in effect on June 1, 1993, shall be
applicable for the purposes of this subsection.
(9) The State of Louisiana may allow, by special
permit, the operation of vehicles with a gross vehicle
weight of up to 100,000 pounds for the hauling of
sugarcane during the harvest season, not to exceed 100
days annually.
(10) With respect to Interstate Routes 89, 93, and 95
in the State of New Hampshire, State laws (including
regulations) concerning vehicle weight limitations that
were in effect on January 1, 1987, and are applicable
to State highways other than the Interstate System,
shall be applicable in lieu of the requirements of this
subsection.
(11) With respect to that portion of the Maine
Turnpike designated Interstate Route 95 and 495, and
that portion of Interstate Route 95 from the southern
terminus of the Maine Turnpike to the New Hampshire
State line, laws (including regulations) of the State
of Maine concerning vehicle weight limitations that
were in effect on October 1, 1995, and are applicable
to State highways other than the Interstate System,
shall be applicable in lieu of the requirements of this
subsection.
(12) Heavy duty vehicles--
(A) In general.--Subject to subparagraphs (B)
and (C), in order to promote reduction of fuel
use and emissions because of engine idling, the
maximum gross vehicle weight limit and the axle
weight limit for any heavy-duty vehicle
equipped with an idle reduction technology
shall be increased by a quantity necessary to
compensate for the additional weight of the
idle reduction system.
(B) Maximum weight increase.--The weight
increase under subparagraph (A) shall be not
greater than 250 pounds.
(C) Proof.--On request by a regulatory agency
or law enforcement agency, the vehicle operator
shall provide proof (through demonstration or
certification) that--
(i) the idle reduction technology is
fully functional at all times; and
(ii) the 250-pound gross weight
increase is not used for any purpose
other than the use of idle reduction
technology described in subparagraph
(A).
* * * * * * *
DEPARTMENT OF ENERGY ORGANIZATION ACT--PUBLIC LAW 95-91, AS AMENDED (42
U.S.C. 7101 ET SEQ.)
* * * * * * *
TABLE OF CONTENTS
* * * * * * *
TITLE II--ESTABLISHMENT OF THE DEPARTMENT
Sec. 201. Establishment.
Sec. 202. Principal officers.
Sec. 203. Assistant Secretaries.
Sec. 204. Federal Energy Regulatory Commission.
Sec. 205. Energy Information Administration.
Sec. 206. Economic Regulatory Administration.
Sec. 207. Comptroller General functions.
Sec. 208. [Repealed].
[Sec. 209.] Sec. 209. Office of Science.
Sec. 210. Leasing Liaison Committee.
Sec. 211. Office of Minority Economic Impact.
[Sec. 212. Repealed P.L. 106-65, Sec. 3294(d)(1), Oct. 5, 1999, 113
Stat. 970]
[213.] Sec. 213. Establishment of policy for National Nuclear Security
Administration.
[214.] Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
[215.] Sec. 215. Office of Counterintelligence.
[216.] Sec. 216. Office of Intelligence.
Sec. 217. Office of Indian Energy Policy and Programs.
TITLE II--ESTABLISHMENT OF THE DEPARTMENT
* * * * * * *
PRINCIPAL OFFICERS
Sec. 202. (a) There shall be in the Department a Deputy
Secretary, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
compensated at the rate provided for level II of the Executive
Schedule under section 5313 of title 5. The Deputy Secretary
shall act for and exercise the functions of the Secretary
during the absence or disability of the Secretary or in the
event the office of Secretary becomes vacant. The Secretary
shall designate the order in which the Under Secretary and
other officials shall act for and perform the functions of the
Secretary during the absence or disability of both the
Secretary and Deputy Secretary or in the event of vacancies in
both of those offices.
[(b) There shall be in the Department an Under Secretary
and a General Counsel, who shall be appointed by the President,
by and with the advice and consent of the Senate, and who shall
perform such functions and duties as the Secretary shall
prescribe. The Under Secretary shall bear primary
responsibility for energy conservation. The Under Secretary
shall be compensated at the rate provided for level III of the
Executive Schedule under section 5314 of title 5, and the
General Counsel shall be compensated at the rate provided for
level IV of the Executive Schedule under section 5315 of title
5, United States Code.]
(b)(1) There shall be in the Department an Under Secretary
for Energy and Science, who shall be appointed by the
President, by and with the advice and consent of the Senate.
(2) The Under Secretary shall be compensated at the rate
provided for level III of theExecutive Schedule under section
5314 of title 5, United States Code.
(3) The Under Secretary for Energy and Science shall be
appointed from among persons who--
(A) have extensive background in scientific or
engineering fields; and
(B) are well qualified to manage the civilian
research and development programs of the Department.
(4) The Under Secretary for Energy and Science shall--
(A) serve as the Science and Technology Advisor to
the Secretary;
(B) monitor the research and development programs of
the Department in order to advise the Secretary with
respect to any undesirable duplication or gaps in the
programs;
(C) advise the Secretary with respect to the well-
being and management of the multipurpose laboratories
under the jurisdiction of the Department;
(D) advise the Secretary with respect to education
and training activities required for effective short-
and long-term basic and applied research activities of
the Department;
(E) advise the Secretary with respect to grants and
other forms of financial assistance required for
effective short- and long-term basic and applied
research activities of the Department;
(F) bear primary responsibility for energy
conservation; and
(G) exercise authority and responsibility over
Assistant Secretaries carrying out energy research and
development and energy technology functions under
sections 203 and 209, as well as other elements of the
Department assigned by the Secretary.
(c)(1) There shall be in the Department an Under Secretary
for Nuclear Security, who shall be appointed by the President,
by and with the advice and consent of the Senate. The Under
Secretary shall be compensated at the rate provided for at
level III of the Executive Schedule under section 5314 of title
5.
(2) The Under Secretary for Nuclear Security shall be
appointed from among persons who--
(A) have extensive background in national security,
organizational management, and appropriate technical
fields; and
(B) are well qualified to manage the nuclear weapons,
nonproliferation, and materials disposition programs of
the National Nuclear Security Administration in a
manner that advances and protects the national security
of the United States.
(3) The Under Secretary for Nuclear Security shall
serve as the Administrator for Nuclear Security under
section 2402 of title 50. In carrying out the functions
of the Administrator, the Under Secretary shall be
subject to the authority, direction, and control of the
Secretary. Such authority, direction, and control may
be delegated only to the Deputy Secretary of Energy,
without redelegation.
(d)(1) There shall be in the Department an Under Secretary,
who shall be appointed by the President, by and with the advice
and consent of the Senate, and who shall perform such functions
and duties as the Secretary shall prescribe, consistent with
this section.
(2) The Under Secretary shall be compensated at the rate
provided for level III of the Executive Schedule under section
5314 of title 5, United States Code.
(e)(1) There shall be in the Department a General Counsel,
who shall be appointed by the President, by and with the advice
and consent of the Senate, and who shall perform such functions
and duties as the Secretary shall prescribe.
(2) The General Counsel shall be compensated at the rate
provided for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
* * * * * * *
ASSISTANT SECRETARIES
Sec. 203 (a) [There shall be in the Department six
Assistant Secretaries] Except as provided in section 209, there
shall be in the Department seven Assistant Secretaries, each of
whom shall be appointed by the President, by and with the
advice and consent of the Senate; who shall be compensated at
the rate provided for at level IV of the Executive Schedule
under section 5315 of title 5; and who shall perform, in
accordance with applicable law, such of the functions
transferred or delegated to, or vested in, the Secretary as he
shall prescribe in accordance with the provisions of this
chapter. The functions which the Secretary shall assign to the
Assistant Secretaries include, but are not limited to, the
following:
* * * * * * *
ENERGY INFORMATION ADMINISTRATION
Sec. 205. * * *
(n) * * *
(m)(1) In order to improve the ability to evaluate the
effectiveness of the renewable fuels mandate of the United
States, the Administrator shall conduct and publish the results
of a survey of renewable fuels demand in the motor vehicle
fuels market in the United States monthly, and in a manner
designed to protect the confidentiality of individual
responses.
(2) In conducting the survey, the Administrator shall
collect information both on a national and regional basis,
including--
(A) information on--
(i) the quantity of renewable fuels produced;
(ii) the quantity of renewable fuels blended;
(iii) the quantity of renewable fuels
imported; and
(iv) the quanity of renewable fuels demanded;
and
(B) market price data.
* * * * * * *
[OFFICE OF SCIENCE
[Sec. 209. (a) There shall be within the Department an
Office of Science to be headed by a Director, who shall be
appointed by the President, by and with the advice and consent
of the Senate, and who shall be compensated at the rate
provided for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
[(b) It shall be the duty and responsibility of the
Director--
[(1) to advise the Secretary with respect to the
physical research program transferred to the Department
from the Energy Research and Development
Administration;
[(2) to monitor the Department's energy research and
development programs in order to advise the Secretary
with respect to any undesirable duplication or gaps in
such programs;
[(3) to advise the Secretary with respect to the
well-being and management of the multipurpose
laboratories under the jurisdiction of the Department,
excluding laboratories that constitute part of the
nuclear weapons complex;
[(4) to advise the Secretary with respect to
education and training activities required for
effective short- and long-term basic and applied
research activities of the Department;
[(5) to advise the Secretary with respect to grants
and other forms of financial assistance required for
effective short- and long-term basic and applied
research activities of the Department; and
[(6) to carry out such additional duties assigned to
the Office by the Secretary relating to basic and
applied research, including but not limited to
supervision or support of research activities carried
out by any of the Assistant Secretaries designated by
section 203 of this Act, as the Secretary considers
advantageous.]
OFFICE OF SCIENCE
Sec. 209. (a) There shall be within the Department an
Office of Science, to be headed by an Assistant Secretary for
Science, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
compensated at the rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(b) The Assistant Secretary for Science shall be in
addition to the Assistant Secretaries provided for under
section 203 of this Act.
(c) It shall be the duty and responsibility of the
Assistant Secretary for Science to carry out the fundamental
science and engineering research functions of the Department,
including the responsibility for policy and management of such
research, as well as other functions vested in the Secretary
which he may assign to the Assistant Secretary.
* * * * * * *
OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
Sec. 217. (a) Establishment.--
(1) There is established within the Department an
Office of Indian Energy Policy and Programs (referred
to in this section as the ``Office'').
(2) The Office shall be headed by a Director, to be
appointed by the Secretary and compensated at a rate
equal to that of level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
(b) Duties of Director.--The Director, in accordance with
Federal policies promoting Indian self-determination and the
purposes of this Act, shall provide, direct, foster,
coordinate, and implement energy planning, education,
management, conservation, and delivery programs of the
Department that--
(1) promote Indian tribal energy development,
efficiency, and use;
(2) reduce or stabilize energy costs;
(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
(4) bring electrical power and service to Indian land
and the homes of tribal members that are--
(A) located on Indian land; or
(B) acquired, constructed, or improved (in
whole or in part) with Federal funds.
* * * * * * *
CONTRACTS
Sec. 646. * * *
(f) * * *
(g)(1) In addition to other authorities granted to the
Secretary under any other provision of law, the Secretary may
enter into other transactions on such terms as the Secretary
may consider appropriate in furtherance of research,
development, or demonstration functions vested in the
Secretary.
(2) The other transactions shall not be subject to section
9 of the Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5908).
(3)(A) The Secretary shall ensure that--
(i) to the maximum extent the Secretary determines
practicable, no transaction entered into under
paragraph (1) provides for research, development, or
demonstration that duplicates research, development, or
demonstration being conducted under existing projects
carried out by the Department;
(ii) to the extent the Secretary determines
practicable, the funds provided by the Federal
Government under a transaction authorized by paragraph
(1) do not exceed the total amount provided by other
parties to the transaction; and
(iii) to the extent the Secretary determines
practicable, competitive, merit-based selection
procedures shall be used when entering into
transactions under paragraph (1).
(B) A transaction authorized by paragraph (1) may be used
for a research, development, or demonstration project only if
the Secretary determines the use of a standard contract, grant,
or cooperative agreement for the project is not feasible or
appropriate.
(4)(A) The Secretary shall protect from disclosure
(including disclosure under section 552 of title 5, United
States Code) for up to 5 years after the date the information
is received by the Secretary--
(i) a proposal, proposal abstract, and supporting
documents submitted to the Department in a competitive
or noncompetitive process having the potential for
resulting in an award to the party submitting the
information entering into a transaction under paragraph
(1); and
(ii) a business plan and technical information
relating to a transaction authorized by paragraph (1)
submitted to the Department as confidential business
information.
(B) The Secretary may protect from disclosure, for up to 5
years after the information was developed, any information
developed pursuant to a transaction under paragraph (1) which
developed information is of a character that it would be
protected from disclosure under section 552(b)(4) of title 5,
United States Code, if obtained from a person other than a
Federal agency.
(5)(A) Not later than 90 days after the date of enactment
of this subsection, the Secretary shall prescribe guidelines
for using other transactions authorized by paragraph (1).
(B) The guidelines shall be published in the Federal
Register for public comment under rulemaking procedures of the
Department.
(6) The authority of the Secretary under this subsection
may be delegated only to an officer of the Department who is
appointed by the President by and with the advice and consent
of the Senate and may not be delegated to any other person.
---------- --
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DEPARTMENT OF ENERGY SCIENCE EDUCATION ENHANCEMENT ACT
PART E OF TITLE XXXI OF PUBLIC LAW 101-510, AS AMENDED (42 U.S.C. 7381-
7381E)
* * * * * * *
SEC. 3164. SCIENCE EDUCATION PROGRAMS
(a) Programs.--The Secretary is authorized to establish
programs to enhance the quality of mathematics, science, and
engineering education. Any such programs shall be operated at
or through the support of Department research and development
facilities, shall use the scientific resources of the
Department, and shall be consistent with the overall Federal
plan for education and human resources in science and
technology developed by the Federal Coordinating Council for
Science, Engineering, and Technology.
(b) Relationship to Other Department Activities.--The
programs described in subsection (a) shall supplement and be
coordinated with current activities of the Department, but
shall not supplant them.
(c) Programs for Students From Under-Represented Groups.--
In carrying out a program under subsection (a), the Secretary
shall give priority to activities that are designed to
encourage students from under-represented groups to pursue
scientific and technical careers.
SEC. 3165. LABORATORY COOPERATIVE SCIENCE CENTERS AND OTHER AUTHORIZED
EDUCATION ACTIVITIES
* * * * * * *
(13) Establish a prefreshman enrichment program in
which middle-school students attend summer workshops on
mathematics, science, and engineering conducted by
universities on their campuses.
(14) Support competitive events for students, under
supervision of teachers, designed to encourage student
interest and knowledge in science and mathematics.
(15) Support comptetively-awarded science resource
centers at National Laboratories to promote
professional development of mathematics teachers and
science teachers who teach in grades from kindergarten
through grade 12.
(16) Support summer internships at National
Laboratories for mathematics teachers and science
teachers who teach in grades from kindergarten through
grade 12.
* * * * * * *
SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND
TRIBAL COLLEGES.
(a) Definitions.--In this section:
(1) Hispanic-serving institution.--The term
``Hispanic-serving institution'' has the meaning given
the term in section 502(a) of the Higher Education Act
of 1965 (20 U.S.C 1101a(a)).
(2) Historically black college or university.--The
term ``historically Black college or university'' has
the meaning given the term ``part B institution'' in
section 322 of the Higher Education Act of 1965 (20
U.S.C. 1061).
(3) National laboratory.--The term ``National
Laboratory'' has the meaning given that term in section
902 of the Energy Policy Act of 2005.
(4) Science facility.--The term ``science facility''
has the meaning given the term ``single purpose
research facility'' in section 903(8) of the Energy
Policy Act of 2005.
(5) Tribal college.--The term tribal college'' has the
meaning given the term ``tribally controlled college or
university'' in section 2(a) of the Tribally Controlled College
Assistance Act of 1978 (25 U.S. C. 1801 (a)).
(b) Education Partnership.--The Secretary shall direct the
Director of each National Laboratory, and may direct the head
of any science facility, to increase the participation of
historically Black colleges or universities, Hispanic-serving
institutions, or tribal colleges in activities that increase
the capacity of the historically Black colleges or
universities, Hispanic-serving institutions, or tribal colleges
to train personnel in science or engineering.
(c) Activities.--An activity under subsection (b) may
include--
(1) collaborative research;
(2) equipment transfer;
(3) training activities conducted at a National
Laboratory or science facility; and
(4) mentoring activities conducted at a National
Laboratory or science facility.
(d) Report.--Not later than 2 years after the date of
enactment of this section, the Secretary shall submit to the
Congress a report on the activities carried out under this
section.
SEC. [3167.] 3168. DEFINITIONS.
In this part:
(1) The term ``Secretary'' means the Secretary of
Energy.
(2) The term ``Department'' means the Department of
Energy.
(3) The term ``Department research and development
facilities'' means all Department of Energy single-
purpose and multipurpose National Laboratories and
research and development facilities and programs, and
any other facility or program operated by a contractor
funded from the Office of Energy Research of the
Department of Energy.
(4) The term ``local educational agency'' has the
meaning given that term by section 1471(12) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 2891(12)).
SEC. [3168.] 3169. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary
for carrying out university research support and other science,
mathematics, and engineering education programs authorized by
this subchapter and administered by the Office of Science of
the Department of Energy, $40,000,000 for fiscal year 1991; and
$40,000,000 for each of fiscal years 2004 through 2008.
---------- --
--------
SPARK M. MATSUNAGA HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION
ACT OF 1990--PUBLIC LAW 101-566, AS AMENDED (42 U.S.C. 12401 ET SEQ.)
* * * * * * *
[SEC. 101. SHORT TITLE.
This Act may be referred to as the ``Spark M. Matsunaga
Hydrogen Research, Development, and Demonstration Act of
1990''.
[SEC. 102. FINDING, PURPOSES, AND DEFINITION.
[(a) Finding.--Congress finds that it is in the national
interest to accelerate efforts to develop a domestic capability
to economically produce hydrogen in quantities that will make a
significant contribution toward reducing the Nation's
dependence on conventional fuels.
[(b) Purposes.--The purposes of this Act are--
[(1) to direct the Secretary of Energy to conduct a
research, development, and demonstration program
leading to the production, storage, transport, and use
of hydrogen for industrial, residential,
transportation, and utility applications;
[(2) to direct the Secretary to develop a technology
assessment and information transfer program among the
Federal agencies and aerospace, transportation, energy,
and other entities; and
[(3) to develop renewable energy resources as a
primary source of energy for the production of
hydrogen.
[(c) Definition.--As used in this Act, the term:
[(1) ``critical technology'' (or critical technical
issue'') means a technology (or issue) that, in the
opinion of the Secretary, requires understanding and
development in order to take the next needed step in
the development of hydrogen as an economic fuel or
storage medium;
[(2) ``Department'' means the Department of Energy;
and
[(3) ``Secretary'' means the Secretary of Energy.
[SEC. 103. COMPREHENSIVE MANAGEMENT PLAN.
[(a) Plan.--The Secretary shall prepare a comprehensive 5-
year program management plan for research and development
activities, which shall be conducted over a period of no less
than 5 years and shall be consistent with the provisions of
sections 104 and 105. In the preparation of such plan, the
Secretary shall consult with the Administrator of the National
Aeronautics and Space Administration, the Secretary of
Transportation, the Hydrogen Technical Advisory Panel
established under section 108, and the heads of such other
Federal agencies and such public and private organizations as
he deems appropriate. The plan shall be structured to identify
and address areas of research critical to the realization of a
domestic hydrogen production capability within the shortest
time practicable.
[(b) Contents of Plan.--Within 180 days after the date of
the enactment of this Act, the Secretary shall transmit the
comprehensive program management plan to the Committee on
Science, Space, and Technology of the House of Representatives
and the Committee on Energy and Natural Resources of the
Senate. Subsequent plans shall be incorporated in the
management plan under this section. The plan shall include--
[(1) a prioritization of research areas critical to
the economic use of hydrogen as a fuel and energy
storage medium;
[(2) the program elements, management structure, and
activities, including program responsibilities of
individual agencies and individual institutional
elements;
[(3) the program strategies including technical
milestones to be achieved toward specific goals during
each fiscal year for all major activities and projects;
[(4) the estimated costs of individual program items,
including current as well as proposed funding levels
for each of the 5 years of the plan for each of the
participating agencies;
[(5) a description of the methodology of coordination
and technology transfer; and
[(6) the proposed participation by industry and
academia in the planning and implementation of the
program.
[(c) Demonstration Plan.--The Secretary shall, in
consultation with the Secretary of Transportation, the
Administrator of the National Aeronautics and Space
Administration, and the Hydrogen Technical Advisory Panel
established under section 108, also prepare a comprehensive
large-scale hydrogen demonstration plan with respect to
demonstrations carried out pursuant to section 105. Subsequent
plans shall be incorporated in the management plan under this
section. Such plan shall include--
[(1) a description of the necessary research and
development activities that must be completed before
initiation of a large-scale hydrogen production and
storage demonstration program;
[(2) an assessment of the appropriateness of a large-
scale demonstration immediately upon completion of the
necessary research and development activities;
[(3) an implementation schedule with associated
budget and program management resource requirements;
and
[(4) a description of the role of the private sector
in carrying out the demonstration program.
[SEC. 104. RESEARCH AND DEVELOPMENT.
[(a) Program.--The Secretary shall conduct a research and
development program, consistent with the comprehensive 5-year
program management plan under section 103, to ensure the
development of a domestic hydrogen fuel production capability
within the shortest time practicable consistent with market
conditions.
[(b) Research.--(1) Particular attention shall be given to
developing an understanding and resolution of all critical
technical issues preventing the introduction of hydrogen into
the marketplace.
[(2) The Secretary shall initiate research or accelerate
existing research in critical technical issues that will
contribute to the development of more economic hydrogen
production and use, including, but not limited to, critical
technical issues with respect to production, liquefaction,
transmission, distribution, storage, and use (including use of
hydrogen in surface transportation).
[(c) Renewable Energy Priority.--The Secretary shall give
priority to those production techniques that use renewable
energy resources as their primary source of energy for hydrogen
production.
[(d) New Technologies.--The Secretary shall, for the
purpose of performing his responsibilities pursuant to this
Act, solicit proposals for and evaluate any reasonable new or
improved technology that could lead or contribute to the
development of economic hydrogen production storage and
utilization.
[(e) Information.--The Secretary shall conduct evaluations,
arrange for tests and demonstrations, and disseminate to
developers information, data, and materials necessary to
support efforts undertaken pursuant to this section, consistent
with section 106.
[SEC. 105. DEMONSTRATIONS.
[(a) Requirement.--The Secretary shall conduct
demonstrations of critical technologies, preferably in self-
contained locations, so that technical and non-technical
parameters can be evaluated to best determine commercial
applicability of the technology.
[(b) Small-Scale Demonstrations.--Concurrently with
activities conducted pursuant to section 104, the Secretary
shall conduct small-scale demonstrations of hydrogen technology
at self-contained sites.
[SEC. 106. TECHNOLOGY TRANSFER PROGRAM.
[(a) Program.--The Secretary shall conduct a program
designed to accelerate wider application of hydrogen
production, storage, utilization, and other technologies
available in near term as a result of aerospace experience as
well as other research progress by transferring critical
technologies to the private sector. The Secretary shall direct
the program with the advice and assistance of the Hydrogen
Technical Advisory Panel established under section 108. The
objective in seeking this advice is to increase participation
of private industry in the demonstration of near commercial
applications through cooperative research and development
arrangements, joint ventures or other appropriate arrangements
involving the private sector.
[(b) Information.--The Secretary, in carrying out the
program authorized by subsection (a), shall--
[(1) Undertake an inventory and assessment of
hydrogen technologies and their commercial capability
to economically produce, store, or utilize hydrogen in
aerospace, transportation, electric utilities,
petrochemical, chemical, merchant hydrogen, and other
industrial sectors; and
[(2) develop a National Aeronautics Space
Administration, Department of Energy, and industry
information exchange program to improve technology
transfer for--
[(A) application of aerospace experience by
industry;
[B) application of research progress by
industry and aerospace;
[(C) application of commercial capability of
industry by aerospace; and
[(D) expression of industrial needs to
research organizations.
[The information exchange program may consist of workshops,
publications, conferences, and a data base for the use by the
public and private sectors.
[SEC. 107. COORDINATION AND CONSULTATION.
[(a) Secretary's Responsibility.--The Secretary shall have
overall management responsibility for carrying out programs
under this Act. In carrying out such programs, the Secretary,
consistent with such overall management responsibility--
[(1) shall use the expertise of the National
Aeronautics and Space Administration and the Department
of Transportation; and
[(2) may use the expertise of any other Federal
agency in accordance with subsection (b) in carrying
out any activities under this title, to the extent that
the Secretary determines that any such agency has
capabilities which would allow such agency to
contribute to the purpose of this Act.
[(b) Assistance.--The Secretary may, in accordance with
subsection (a), obtain the assistance of any department,
agency, or instrumentality of the Executive branch of the
Federal Government upon written request, on a reimbursable
basis or otherwise and with the consent of such department,
agency, or instrumentality. Each such request shall identify
the assistance the Secretary deems necessary to carry out any
duty under this Act.
[(c) Consultation.--The Secretary shall consult with the
Administrator of the National Aeronautics and Space
Administration, the Administrator of the Environmental
Protection Agency, the Secretary of Transportation, and the
Hydrogen Technical Advisory Panel established under section 108
in carrying out his authorities pursuant to this Act.
[SEC. 108. TECHNICAL PANEL.
[(a) Establishment.--There is hereby established the
Hydrogen Technical Advisory Panel (the ``technical panel''), to
advise the Secretary on the programs under this Act.
[(b) Membership.--The technical panel shall be appointed by
the Secretary and shall be comprised of such representatives
from domestic industry, universities, professional societies,
Government laboratories, financial, environmental, and other
organizations as the Secretary deems appropriate based on his
assessment of the technical and other qualifications of such
representatives. Appointments to the technical panel shall be
made within 90 days after the enactment of this Act. The
technical panel shall have a chairman, who shall be elected by
the members from among their number.
[(c) Cooperation.--The heads of the departments, agencies,
and instrumentalities of the Executive branch of the Federal
Government shall cooperate with the technical panel in carrying
out the requirements of this section and shall furnish to the
technical panel such information as the technical panel deems
necessary to carry out this section.
[(d) Review.--The technical panel shall review and make any
necessary recommendations to the Secretary on the following
items--
[(1) the implementation and conduct of programs under
this Act;
[(2) the economic, technological, and environmental
consequences of the deployment of hydrogen production
and use systems; and
[(3) comments on and recommendations for improvements
in the comprehensive 5-year program management plan
required under section 103.
[(e) Support.--The Secretary shall provide such staff,
funds and other support as may be necessary to enable the
technical panel to carry out the functions described in this
section
[SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
[There is hereby authorized to be appropriated to carry out
the purposes of this Act (in addition to any amounts made
available for such purposes to other Acts)--
[(1) $3,000,000 for the fiscal year 1992;
[(2) $7,000,000 for the fiscal year 1993; and
[(3) $10,000,000 for the fiscal year 1994.]
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act
of 1990''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--HYDROGEN AND FUEL CELLS
Sec. 101. Hydrogen and fuel cell technology research and development.
Sec. 102. Task Force.
Sec. 103. Technology transfer.
Sec. 104. Authorization of appropriations.
TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION
Sec. 201. Hydrogen Supply and Fuel Cell Demonstration Program.
Sec. 202. Authorization of appropriations.
TITLE III--REGULATORY MANAGEMENT
Sec. 301. Codes and standards.
Sec. 302. Disclosure.
Sec. 303. Authorization of appropriations.
TITLE IV--REPORTS
Sec. 401. Deployment of hydrogen technology.
Sec. 402. Authorization of appropriations.
TITLE V--TERMINATION OF AUTHORITY
Sec. 501. Termination of authority.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to enable and promote comprehensive development,
demonstration, and commercialization of hydrogen and
fuel cell technology in partnership with industry;
(2) to make critical public investments in building
strong links to private industry, institutions of
higher education, National Laboratories, and research
institutions to expand innovation and industrial
growth;
(3) to build a mature hydrogen economy that creates
fuel diversity in the massive transportation sector of
the United States;
(4) to sharply decrease the dependency of the United
States on imported oil, eliminate most emissions from
the transportation sector, and greatly enhance our
energy security; and
(5) to create, strengthen, and protect a sustainable
national energy economy.
SEC. 3. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Fuel cell.--The term ``fuel cell'' means a device
that directly converts the chemical energy of a fuel,
which is supplied from an external source, and an
oxidant into electricity by electrochemical processes
occurring at separate electrodes in the device.
(3) Heavy-duty vehicle.--The term ``heavy-duty
vehicle'' means a motor vehicle that--
(A) is rated at more than 8,500 pounds gross
vehicle weight;
(B) has a curb weight of more than 6,000
pounds; or
(C) has a basic vehicle frontal area in
excess of 45 square feet.
(4) Infrastructure.--The term ``infrastructure''
means the equipment, systems, or facilities used to
produce, distribute, deliver, or store hydrogen (except
for onboard storage).
(5) Light-duty vehicle.--The term ``light-duty
vehicle'' means a motor vehicle that is rated at 8,500
or less pounds gross vehicle weight.
(6) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(7) Stationary; portable.--The terms ``stationary''
and ``portable'', when used in reference to a fuel
cell, include--
(A) continuous electric power; and
(B) backup electric power.
(8) Task force.--The term ``Task Force'' means the
Hydrogen and Fuel Cell Technical Task Force established
under section 102(a).
(9) Technical advisory committee.--The term
``Technical Advisory Committee'' means the independent
Technical Advisory Committee of the Task Force selected
under section 102(d).
TITLE I--HYDROGEN AND FUEL CELLS
SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary, in consultation with other
Federal agencies and the private sector, shall conduct a
research and development program on technologies relating to
the production, purification, distribution, storage, and use of
hydrogen energy, fuel cells, and related infrastructure.
(b) Goal.--The goal of the program shall be to demonstrate
and commercialize the use of hydrogen for transportation (in
light-duty vehicles and heavy-duty vehicles), utility,
industrial, commercial and residential applications.
(c) Focus.--In carrying out activities under this section,
the Secretary shall focus on factors that are common to the
development of hydrogen infrastructure and the supply of
vehicle and electric power for critical consumer and commercial
applications, and that achieve continuous technical evolution
and cost reduction, particularly for hydrogen production, the
supply of hydrogen, storage of hydrogen, and end uses of
hydrogen that--
(1) steadily increase production, distribution, and
end use efficiency and reduce life-cycle emissions;
(2) resolve critical problems relating to catalysts,
membranes, storage, lightweight materials, electronic
controls, and other problems that emerge from research
and development;
(3) enhance sources of renewable fuels and biofuels
for hydrogen production; and
(4) enable widespread use of distributed electricity
generation and storage.
(d) Public Education and Research.--In carrying out this
section, the Secretary shall support enhanced public education
and research conducted at institutions of higher education in
fundamental sciences, application design, and systems concepts
(including education and research relating to materials,
subsystems, manufacturability, maintenance, and safety)
relating to hydrogen and fuel cells.
(e) Cost Sharing.--The costs of carrying out projects and
activities under this section shall be shared in accordance
with section 1002 of the Energy Policy Act of 2005.
SEC. 102. TASK FORCE.
(a) Establishment.--The Secretary, in consultation with the
Director of the Office of Science and Technology Policy, shall
establish an interagency Task Force, to be known as the
``Hydrogen and Fuel Cell Technical Task Force'' to advise the
Secretary in carrying out programs under this Act.
(b) Membership.--
(1) In general.--Task Force shall be comprised of
such representatives of the Office of Science and
Technology Policy, the Environmental Protection Agency,
the Department of Transportation, the Department of
Defense, the National Aeronautics and Space
Administration, and such other members, as the
Secretary, in consultation with the Director of the
Office of Science and Technology Policy, determines to
be appropriate.
(2) Voting.--A member of the Task Force that does not
represent a Federal agency shall serve on the Task
Force only in a nonvoting, advisory capacity.
(c) Duties.--The Task Force shall review and make any
necessary recommendations to the Secretary on implementation
and conduct of programs under this Act.
(d) Technical Advisory Committee.--
(1) In general.--The Secretary shall select such
number of members as the Secretary considers to be
appropriate to form an independent, nonpolitical
Technical Advisory Committee.
(2) Membership.--Each member of the Technical
Advisory Committee shall have scientific, technical, or
industrial expertise, as determined by the Secretary.
(3) Duties.--The Technical Advisory Committee shall
provide technical advice and assistance to the Task
Force and the Secretary.
SEC. 103. TECHNOLOGY TRANSFER.
In carrying out this Act, the Secretary shall carry out
programs that--
(1) provide for the transfer of critical hydrogen and
fuel cell technologies to the private sector;
(2) accelerate wider application of those
technologies in the global market;
(3) foster the exchange of generic, nonproprietary
information; and
(4) assess technical and commercial viability of
technologies relating to the production, distribution,
storage, and use of hydrogen energy and fuel cells.
SEC. 104. AUTHORIZATION OF APPROPRIATIONS.
(a) Hydrogen Supply.--There are authorized to be
appropriated to carry out projects and activities relating to
hydrogen production, storage, distribution and dispensing,
transport, education and coordination, and technology transfer
under this title--
(1) $160,000,000 for fiscal year 2006;
(2) $200,000,000 for fiscal year 2007;
(3) $220,000,000 for fiscal year 2008;
(4) $230,000,000 for fiscal year 2009;
(5) $250,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2015.
(b) Fuel Cell Technologies.--There are authorized to be
appropriated to carry out projects and activities relating to
fuel cell technologies under this title--
(1) $150,000,000 for fiscal year 2006;
(2) $160,000,000 for fiscal year 2007;
(3) $170,000,000 for fiscal year 2008;
(4) $180,000,000 for fiscal year 2009;
(5) $200,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2015.
TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION
SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEMONSTRATION PROGRAM.
(a) In General.--The Secretary, in consultation with the
Task Force and the Technical Advisory Committee, shall carry
out a program to demonstrate developmental hydrogen and fuel
cell systems for mobile, portable, and stationary uses, using
improved versions of the learning demonstrations program
concept of the Department including demonstrations involving--
(1) light-duty vehicles;
(2) heavy-duty vehicles;
(3) fleet vehicles;
(4) specialty industrial and farm vehicles; and
(5) commercial and residential portable, continuous,
and backup electric power generation.
(b) Other Demonstration Programs.--To develop widespread
hydrogen supply and use options, and assist evolution of
technology, the Secretary shall--
(1) carry out demonstrations of evolving hydrogen and
fuel cell technologies in national parks, remote island
areas, and on Indian tribal land, as selected by the
Secretary;
(2) in accordance with any code or standards
developed in a region, fund prototype, pilot fleet, and
infrastructure regional hydrogen supply corridors along
the interstate highway system in varied climates across
the United States; and
(3) fund demonstration programs that explore the use
of hydrogen blends, hybrid hydrogen, and hydrogen
reformed from renewable agricultural fuels, including
the use of hydrogen in hybrid electric, heavier duty,
and advanced internal combustion-powered vehicles.
(c) System Demonstrations.--
(1) In general.--As a component of the demonstration
program under this section, the Secretary shall provide
grants, on a cost share basis as appropriate, to
eligible entities (as determined by the Secretary) for
use in--
(A) devising system design concepts that
provide for the use of advanced composite
vehicles in programs under section 732 of the
Energy Policy Act of 2005 that--
(i) have as a primary goal the
reduction of drive energy requirements;
(ii) after 2010, add another research
and development phase to the vehicle
and infrastructure partnerships
developed under the learning
demonstrations program concept of the
Department; and
(iii) are managed through an enhanced
FreedomCAR program within the
Department that encourages involvement
in cost-shared projects by
manufacturers and governments; and
(B) designing a local distributed energy
system that--
(i) incorporates renewable hydrogen
production, off-grid electricity
production, and fleet applications in
industrial or commercial service;
(ii) integrates energy or
applications described in clause (i),
such as stationary, portable, micro,
and mobile fuel cells, into a high-
density commercial or residential
building complex or agricultural
community; and
(iii) is managed in cooperation with
industry, State, tribal, and local
governments, agricultural
organizations, and nonprofit generators
and distributors of electricity.
(2) Cost sharing.--The costs of carrying out a
project or activity under this subsection shall be
shared in accordance with [section 1002 of the Energy
Policy Act of 2005].
(d) Identification of New Research and Development
Requirements.--In carrying out the demonstrations under
subsection (a), the Secretary, in consultation with the Task
Force and the Technical Advisory Committee, shall--
(1) after 2008 for stationary and portable
applications, and after 2010 for vehicles, identify new
research and development requirements that refine
technological concepts, planning, and applications; and
(2) during the second phase of the learning
demonstrations under subsection (c)(1)(A)(ii) redesign
subsequent research and development to incorporate
those requirements.
SEC. 202. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
title--
(1) $185,000,000 for fiscal year 2006;
(2) $200,000,000 for fiscal year 2007;
(3) $250,000,000 for fiscal year 2008;
(4) $300,000,000 for fiscal year 2009;
(5) $375,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2015.
TITLE III--REGULATORY MANAGEMENT
SEC. 301. CODES AND STANDARDS.
(a) In General.--The Secretary, in cooperation with the
Task Force, shall provide grants to, or offer to enter into
contracts with such professional organizations, public service
organizations, and government agencies as the Secretary
determines appropriate to support timely and extensive
development of safety codes and standards relating to fuel cell
vehicles, hydrogen energy systems, and stationary, portable,
and micro fuel cells.
(b) Educational Efforts.--The Secretary shall support
educational efforts by organizations and agencies described in
subsection (a) to share information, including information
relating to best practices, among those organizations and
agencies.
SEC. 302. DISCLOSURE.
Section 623 of the Energy Policy Act of 1992 (42 U.S.C.
13293) shall apply to any project carried out through a grant,
cooperative agreement, or contract under this Act.
SEC. 303. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
title--
(1) $4,000,000 for fiscal year 2006;
(2) $7,000,000 for fiscal year 2007;
(3) $8,000,000 for fiscal year 2008;
(4) $10,000,000 for fiscal year 2009;
(5) $9,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 and 2012.
TITLE IV--REPORTS
SEC. 401. DEPLOYMENT OF HYDROGEN TECHNOLOGY.
(a) Secretary.--Subject to subsection (c), not later than 2
years after the date of enactment of the Hydrogen and Fuel Cell
Technology Act of 2005, and triennially thereafter, the
Secretary shall submit to Congress a report describing--
(1) any activity carried out by the Department of
Energy under this Act, including a research,
development, demonstration, and commercial application
program for hydrogen and fuel cell technology;
(2) measures the Secretary has taken during the
preceding 3 years to support the transition of primary
industry (or a related industry) to a fully
commercialized hydrogen economy;
(3) any change made to a research, development, or
deployment strategy of the Secretary relating to
hydrogen and fuel cell technology to reflect the
results of a learning demonstration under title II;
(4) progress, including progress in infrastructure,
made toward achieving the goal of producing and
deploying not less than--
(A) 100,000 hydrogen-fueled vehicles in the
United States by 2010; and
(B) 2,500,000 hydrogen-fueled vehicles by
2020;
(5) progress made toward achieving the goal of
supplying hydrogen at a sufficient number of fueling
stations in the United States by 2010 can be achieved
by integrating--
(A) hydrogen activities; and
(B) associated targets and timetables for the
development of hydrogen technologies;
(6) any problem relating to the design, execution, or
funding of a program under this Act;
(7) progress made toward and goals achieved in
carrying out this Act and updates to the developmental
roadmap, including the results of the reviews conducted
by the National Academy of Sciences under subsection
(b) for the fiscal years covered by the report; and
(8) any updates to strategic plans that are necessary
to meet the goals described in paragraph (4).
(b) National Academy of Science.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to
conduct and submit to the Secretary, not later than
September 30, 2007, and triennially thereafter--
(A) the results of a review of the projects
and activities carried out under this Act;
(B) recommendations for any new authorities
or resources needed to achieve strategic goals;
and
(C) recommendations for approaches by which
the Secretary could achieve a substantial
decrease in the dependence on and consumption
of natural gas and imported oil by the Federal
Government, including by increasing the use of
fuel cell vehicles, stationary and portable
fuel cells, and hydrogen energy systems.
(2) Reauthorization.--The Secretary shall use the
results of reviews conducted under paragraph (1) in
proposing to Congress any legislative changes relating
to reauthorization of this Act.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
title $1,500,000 for each of fiscal years 2006 through 2010.
TITLE V--TERMINATION OF AUTHORITY
SEC. 501. TERMINATION OF AUTHORITY.
This Act and the authority provided by this Act terminate
on September 30, 2015.
METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 2000--PUBLIC LAW 106-
193 (30 U.S.C. 1902 NOTE)
* * * * * * *
[Section 1. Short title.
This Act may be cited as the ``Methane Hydrate Research and
Development Act of 2000''.
Sec. 2. Definitions.
In this Act:
[(1) Contract.--The term ``contract'' means a
procurement contract within the meaning of section 6303
of title 31, United States Code.
[(2) Cooperative agreement.--The term ``cooperative
agreement'' means a cooperative agreement within the
meaning of section 6305 of title 31, United States
Code.
[(3) Director.--The term ``Director'' means the
Director of the National Science Foundation.
[(4) Grant.--The term ``grant'' means a grant awarded
under a grant agreement, within the meaning of section
6304 of title 31, United States Code.
[(5) Industrial enterprise.--The term ``industrial
enterprise'' means a private, nongovernmental
enterprise that has an expertise or capability that
relates to methane hydrate research and development.
[(6) Institution of higher education.--The term
``institution of higher education'' means an
institution of higher education, within the meaning of
section 102(a) of the Higher Education Act of 1965 (20
U.S.C. 1002(a)).
[(7) Secretary.--The term ``Secretary'' means the
Secretary of Energy, acting through the Assistant
Secretary for Fossil Energy.
[(8) Secretary of commerce.--The term ``Secretary of
Commerce'' means the Secretary of Commerce, acting
through the Administrator of the National Oceanic and
Atmospheric Administration.
[(9) Secretary of defense.--The term ``Secretary of
Defense'' means the Secretary of Defense, acting
through the Secretary of the Navy.
[(10) Secretary of the interior.--The term
``Secretary of the Interior'' means the Secretary of
the Interior, acting through the Director of the United
States Geological Survey and the Director of the
Minerals Management Service.
[Sec. 3. Methane hydrate research and development program.
[(a) In General.--
[(1) Commencement of program.--Not later than 180
days after the date of he enactment of this Act, the
Secretary, in consultation with the Secretary of
Commerce, the Secretary of Defense, the Secretary of
the Interior, and the Director, shall commence a
program of methane hydrate research and development in
accordance with this section.
[(2) Designations.--The Secretary, the Secretary of
Commerce, the Secretary of Defense, the Secretary of
the Interior, and the Director shall designate
individuals to carry out this section.
[(3) Coordination.--The individual designated by the
Secretary shall coordinate all activities within the
Department of Energy relating to methane hydrate
research and development.
[(4) Meetings.--The individuals designated under
paragraph (2) shall meet not later than 270 days after
the date of the enactment of this Act and not less
frequently than every 120 days thereafter to--
[(A) review the progress of the program under
paragraph (1); and
[(B) make recommendations on future
activities to occur subsequent to the meeting.
[(b) Grants, Contracts, Cooperative Agreements, Interagency
Funds Transfer Agreements, and Field Work Proposals.--
[(1) Assistance and coordination.--In carrying out
the program of methane hydrate research and development
authorized by this section, the Secretary may award
grants or contracts to, or enter into cooperative
agreements with, institutions of higher education and
industrial enterprises to--
[(A) conduct basic and applied research to
identify, explore, assess, and develop methane
hydrate as a source of energy;
[(B) assist in developing technologies
required for efficient and environmentally
sound development of methane hydrate resources;
[(C) undertake research programs to provide
safe means of transport and storage of methane
produced from methane hydrates;
[(D) promote education and training in
methane hydrate resource research and resource
development;
[(E) conduct basic and applied research to
assess and mitigate the environmental impacts
of hydrate degassing (including both natural
degassing and degassing associated with
commercial development);
[(F) develop technologies to reduce the risks
of drilling through methane hydrates; and
[(G) conduct exploratory drilling in support
of the activities authorized by this paragraph.
[(2) Competitive merit-based review.--Funds made
available under paragraph (1) shall be made available
based on a competitive merit-based process.
[(c) Consultation.--The Secretary shall establish an
advisory panel consisting of experts from industrial
enterprises, institutions of higher education, and Federal
agencies to--
[(1) advise the Secretary on potential applications
of methane hydrate;
[(2) assist in developing recommendations and
priorities for the methane hydrate research and
development program carried out under subsection
(a)(1); and
[(3) not later than 2 years after the date of the
enactment of this Act, and at such later dates as the
panel considers advisable, submit to Congress a report
on the anticipated impact on global climate change
from--
[(A) methane hydrate formation;
[(B) methane hydrate degassing (including
natural degassing and degassing associated with
commercial development); and
[(C) the consumption of natural gas produced
from methane hydrates.
Not more than 25 percent of the individuals serving on the
advisory panel shall be Federal employees.
[(d) Limitations.--
[(1) Administrative expenses.--Not more than 5
percent of the amount made available to carry out this
section for a fiscal year may be used by the Secretary
for expenses associated with the administration of the
program carried out under subsection (a)(1).
[(2) Construction costs.--None of the funds made
available to carry out this section may be used for the
construction of a new building or the acquisition,
expansion, remodeling, or alteration of an existing
building (including site grading and improvement and
architect fees).
[(e) Responsibilities of the Secretary.--In carrying out
subsection (b)(1), the Secretary shall--
[(1) facilitate and develop partnerships among
government, industrial enterprises, and institutions of
higher education to research, identify, assess, and
explore methane hydrate resources;
[(2) undertake programs to develop basic information
necessary for promoting long-term interest in methane
hydrate resources as an energy source;
[(3) ensure that the data and information developed
through the program are accessible and widely
disseminated as needed and appropriate;
[(4) promote cooperation among agencies that are
developing technologies that may hold promise for
methane hydrate resource development; and
[(5) report annually to Congress on accomplishments
under this section.
[Sec. 4. [Omitted--This section amended 30 USCS Sec. 1901.]
[Sec. 5. Authorization of appropriations.
[There are authorized to be appropriated to the Secretary
of Energy to carry out this Act--
[(1) $5,000,000 for fiscal year 2001;
[(2) $7,500,000 for fiscal year 2002;
[(3) $11,000,000 for fiscal year 2003;
[(4) $12,000,000 for fiscal year 2004; and
[(5) $12,000,000 for fiscal year 2005.
[Amounts authorized under this section shall remain
available until expended.
[Sec. 6. Sunset.
Section 3 of this Act shall cease to be effective after the
end of fiscal year 2005.
[Sec. 7. National Research Council study.
[The Secretary shall enter into an agreement with the
National Research Council for such council to conduct a study
of the progress made under the methane hydrate research and
development program implemented pursuant to this Act, and to
make recommendations for future methane hydrate research and
development needs. The Secretary shall transmit to the
Congress, not later than September 30, 2004, a report
containing the findings and recommendations of the National
Research Council under this section.
[Sec. 8. Reports and studies.
[The Secretary of Energy shall provide to the Committee on
Science of the House of Representatives copies of any report or
study that the Department of Energy prepares at the direction
of any committee of the Congress.]
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Methane Hydrate Research and
Development Act of 2000''.
SEC. 2. FINDINGS.
Congress finds that--
(1) in order to promote energy independence and meet
the increasing demand for energy, the United States
will require a diversified portfolio of substantially
increased quantities of electricity, natural gas, and
transportation fuels;
(2) according to the report submitted to Congress by
the National Research Council entitled ``Charting the
Future of Methane Hydrate Research in the United
States'', the total United States resources of gas
hydrates have been estimated to be on the order of
200,000 trillion cubic feet;
(3) according to the report of the National
Commission on Energy Policy entitled ``Ending the
Energy Stalemate--A Bipartisan Strategy to Meet
America's Energy Challenge'', and dated December 2004,
the United States may be endowed with over \1/4\ of the
methane hydrate deposits in the world;
(4) according to the Energy Information
Administration, a shortfall in natural gas supply from
conventional and unconventional sources is expected to
occur in or about 2020; and
(5) the National Academy of Science states that
methane hydrate may have the potential to alleviate the
projected shortfall in the natural gas supply.
SEC. 3. DEFINITIONS.
In this Act:
(1) Contract.--The term ``contract'' means a
procurement contract within the meaning of section 6303
of title 31, United States Code.
(2) Cooperative agreement.--The term ``cooperative
agreement'' means a cooperative agreement within the
meaning of section 6305 of title 31, United States
Code.
(3) Director.--The term ``Director'' means the
Director of the National Science Foundation.
(4) Grant.--The term ``grant'' means a grant awarded
under a grant agreement (within the meaning of section
6304 of title 31, United States Code).
(5) Industrial enterprise.--The term ``industrial
enterprise'' means a private, nongovernmental
enterprise that has an expertise or capability that
relates to methane hydrate research and development.
(6) Institution of higher education.--The term
``institution of higher education'' means an
institution of higher education (as defined in section
102 of the Higher Education Act of 1965 (20 U.S.C.
1002)).
(7) Secretary.--The term ``Secretary'' means the
Secretary of Energy, acting through the Assistant
Secretary for Fossil Energy.
(8) Secretary of commerce.--The term ``Secretary of
Commerce'' means the Secretary of Commerce, acting
through the Administrator of the National Oceanic and
Atmospheric Administration.
(9) Secretary of defense.--The term ``Secretary of
Defense'' means the Secretary of Defense, acting
through the Secretary of the Navy.
(10) Secretary of the interior.--The term ``Secretary
of the Interior'' means the Secretary of the Interior,
acting through the Director of the United States
Geological Survey, the Director of the Bureau of Land
Management, and the Director of the Minerals Management
Service.
SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.
(a) In General.--
(1) Commencement of program.--Not later than 90 days
after the date of enactment of the Energy Research,
Development, Demonstration, and Commercial Application
Act of 2005, the Secretary, in consultation with the
Secretary of Commerce, the Secretary of Defense, the
Secretary of the Interior, and the Director, shall
commence a program of methane hydrate research and
development in accordance with this section.
(2) Designations.--The Secretary, the Secretary of
Commerce, the Secretary of Defense, the Secretary of
the Interior, and the Director shall designate
individuals to carry out this section.
(3) Coordination.--The individual designated by the
Secretary shall coordinate all activities within the
Department of Energy relating to methane hydrate
research and development.
(4) Meetings.--The individuals designated under
paragraph (2) shall meet not later than 180 days after
the date of enactment of the Energy Research,
Development, Demonstration, and Commercial Application
Act of 2005 and not less frequently than every 180 days
thereafter to--
(A) review the progress of the program under
paragraph (1); and
(B) coordinate interagency research and
partnership efforts in carrying out the
program.
(b) Grants, Contracts, Cooperative Agreements, Interagency
Funds Transfer Agreements, and Field Work Proposals.--
(1) Assistance and coordination.--In carrying out the
program of methane hydrate research and development
authorized by this section, the Secretary may award
grants to, or enter into contracts or cooperative
agreements with, institutions of higher education,
oceanographic institutions, and industrial enterprises
to--
(A) conduct basic and applied research to
identify, explore, assess, and develop methane
hydrate as a commercially viable source of
energy;
(B) identify methane hydrate resources
through remote sensing;
(C) acquire and reprocess seismic data
suitable for characterizing methane hydrate
accumulations;
(D) assist in developing technologies
required for efficient and environmentally
sound development of methane hydrate resources;
(E) promote education and training in methane
hydrate resource research and resource
development through fellowships or other means
for graduate education and training;
(F) conduct basic and applied research to
assess and mitigate the environmental impact of
hydrate degassing (including both natural
degassing and degassing associated with
commercial development);
(G) develop technologies to reduce the risks
of drilling through methane hydrates; and
(H) conduct exploratory drilling, well
testing, and production testing operations on
permafrost and non-permafrost gas hydrates in
support of the activities authorized by this
paragraph, including drilling of 1 or more
full-scale production test wells.
(2) Competitive peer review.--Funds made available
under paragraph (1) shall be made available based on a
competitive process using external scientific peer
review of proposed research.
(c) Methane Hydrates Advisory Panel.--
(1) In general.--The Secretary shall establish an
advisory panel (including the hiring of appropriate
staff) consisting of representatives of industrial
enterprises, institutions of higher education,
oceanographic institutions, State agencies, and
environmental organizations with knowledge and
expertise in the natural gas hydrates field, to--
(A) assist in developing recommendations and
broad programmatic priorities for the methane
hydrate research and development program
carried out under subsection (a)(1);
(B) provide scientific oversight for the
methane hydrates program, including assessing
progress toward program goals, evaluating
program balance, and providing recommendations
to enhance the quality of the program over
time; and
(C) not later than 2 years after the date of
enactment of the Energy Research, Development,
Demonstration, and Commercial Application Act
of 2005, and at such later dates as the panel
considers advisable, submit to Congress--
(i) an assessment of the methane
hydrate research program; and
(ii) an assessment of the 5-year
research plan of the Department of
Energy.
(2) Conflicts of interest.--In appointing each member
of the advisory panel established under paragraph (1),
the Secretary shall ensure, to the maximum extent
practicable, that the appointment of the member does
not pose a conflict of interest with respect to the
duties of the member under this Act.
(3) Meetings.--The advisory panel shall--
(A) hold the initial meeting of the advisory
panel not later than 180 days after the date of
establishment of the advisory panel; and
(B) meet biennially thereafter.
(4) Coordination.--The advisory panel shall
coordinate activities of the advisory panel with
program managers of the Department of Energy at
appropriate national laboratories.
(d) Construction Costs.--None of the funds made available
to carry out this section may be used for the construction of a
new building or the acquisition, expansion, remodeling, or
alteration of an existing building (including site grading and
improvement and architect fees).
(e) Responsibilities of the Secretary.--In carrying out
subsection (b)(1), the Secretary shall--
(1) facilitate and develop partnerships among
government, industrial enterprises, and institutions of
higher education to research, identify, assess, and
explore methane hydrate resources;
(2) undertake programs to develop basic information
necessary for promoting long-term interest in methane
hydrate resources as an energy source;
(3) ensure that the data and information developed
through the program are accessible and widely
disseminated as needed and appropriate;
(4) promote cooperation among agencies that are
developing technologies that may hold promise for
methane hydrate resource development;
(5) report annually to Congress on the results of
actions taken to carry out this Act; and
(6) ensure, to the maximum extent practicable,
greater participation by the Department of Energy in
international cooperative efforts.
SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.
(a) Agreement for Study.--The Secretary shall offer to
enter into an agreement with the National Research Council
under which the National Research Council shall--
(1) conduct a study of the progress made under the
methane hydrate research and development program
implemented under this Act; and
(2) make recommendations for future methane hydrate
research and development needs.
(b) Report.--Not later than September 30, 2009, the
Secretary shall submit to Congress a report containing the
findings and recommendations of the National Research Council
under this section.
SEC. 6. REPORTS AND STUDIES FOR CONGRESS.
The Secretary shall provide to the Committee on Science of
the House of Representatives and the Committee on Energy and
Natural Resources of the Senate copies of any report or study
that the Department of Energy prepares at the direction of any
committee of Congress relating to the methane hydrate research
and development program implemented under this Act.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this Act, to remain available until expended--
(1) $15,000,000 for fiscal year 2006;
(2) $20,000,000 for fiscal year 2007;
(3) $30,000,000 for fiscal year 2008;
(4) $50,000,000 for fiscal year 2009; and
(5) $50,000,000 for fiscal year 2010.
----------
HIGH-PERFORMANCE COMPUTING ACT OF 1991--PUBLIC LAW 102-194, AS AMENDED
(15 U.S.C. 5501 ET SEQ.)
SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.
(a) General Responsibilities.--As part of the Program
described in [subchapter] title I [of this chapter], the
Secretary of Energy shall--
[(1) perform research and development on, and systems
evaluations of, high-performance computing and
communications systems;
[(2) conduct computational research with emphasis on
energy applications;
[(3) support basic research, education, and human
resources in computational science; and
[(4) provide for networking infrastructure support
for energy-related mission activities.]
(1) conduct and support basic and applied research in
high-performance computing and networking to support
fundamental research in science and engineering
disciplines related to energy applications; and
(2) provide computing and networking infrastructure
support, including--
(A) the provision of high-performance
computing systems that are among the most
advanced in the world in terms of performance
in solving scientific and engineering problems;
and
(B) support for advanced software and
applications development for science and
engineering disciplines related to energy
applications.
----------
COAL RESEARCH AND DEVELOPMENT ACT OF 1960--PUBLIC LAW 86-599 (30 U.S.C.
661 ET SEQ.)
* * * * * * *
[Section 1. Definitions
[As used in this chapter (a) The term ``Secretary'' means
the Secretary of the Interior. (b) The term ``research'' means
scientific, technical, and economic research and the practical
application of that research.]
Section 1. (a) This Act may be cited as the ``Coal Research
and Development Act of 1960''.
(b) In this Act:
(1) the term ``research'' means scientific,
technical, and economic research and the practical
application of that research.
(2) The term Secretary means the Secretary of Energy.
Section 2. Office of Coal Research; powers and duties
The Secretary [shall establish within the Department of the
Interior an Office of Coal Research, and through such Office]
shall (1) develop through research, new and more efficient
methods of mining, preparing, and utilizing coal; (2) contract
for, sponsor, cosponsor, and promote the coordination of,
research with recognized interested groups, including but not
limited to, coal trade associations, coal research
associations, educational institutions, and agencies of States
and political subdivisions of States; (3) establish technical
advisory committees composed of recognized experts in various
aspects of coal research to assist in the examination and
evaluation of research progress and of all research proposals
and contracts and to insure the avoidance of duplication of
research; and (4) cooperate to the fullest extent possible with
other departments, agencies, and independent establishments of
the Federal Government and with State governments, and with all
other interested agencies, governmental and nongovernmental.
[Section 3. Advisory committees
[(a) Minutes of meetings. Any advisory committee appointed
under the provisions of this chapter shall keep minutes of each
meeting, which shall contain as a minimum (1) the name of each
person attending such meeting, (2) a copy of the agenda, and
(3) a record of all votes or polls taken during the meeting.
[(b) Availability of minutes or reports. A copy of any such
minutes or of any report made by any such committee after final
action has been taken thereon by the Secretary shall be
available to the public upon request and payment of the cost of
furnishing such copy.
[(c) Compensation; travel expenses. Members of any advisory
committee appointed from private life under authority of this
section shall each receive $50 per diem when engaged in the
actual performance of their duties as a member of such advisory
committee. Such members shall also be entitled to travel
expenses and per diem in lieu of subsistence at the rates
authorized by section 5703 of title 5 for all persons employed
intermittently as consultants or experts receiving compensation
on a per diem basis.
(d) Exemption from conflict-of-interest statutes. Service
by an individual as a member of such an advisory committee
shall not subject him to the provisions of section 1914 of
title 18, or, except with respect to a particular matter which
directly involves the Office of Coal Research or in which the
Office of Coal Research is directly interested, to the
provisions of sections 281, 283, or 284 of title 18 or of
section 190 of the Revised Statutes (5 U.S.C. 99).
[Section 4. Director of Coal Research; appointment.
[The Secretary may appoint a Director of Coal Research
without regard to the provisions of the civil service laws, or
chapter 51 and subchapter III of chapter 53 of title 5.]
* * * * * * *
Section [5] 3. Sites for conducting research; availability of personnel
and facilities
* * * * * * *
Section [6] 4. Public-availability requirement; national defense;
patent agreements
* * * * * * *
Section [8] 5. Authorization of appropriations
* * * * * * *
[Section 7. Reports to President and Congress
[The Secretary shall submit to the President and the
Congress, on or before February 15 of each year, beginning with
the year 1961, a comprehensive report concerning activities
under the authority of this chapter, including information on
all research projects conducted, sponsored, or cosponsored
under the authority of this chapter during the preceding year.]
----------
TITLE 35, UNITED STATES CODE--PUBLIC LAW 96-517
* * * * * * *
Sec. 210. Precedence of chapter.
(a) This chapter shall take precedence over any other Act
which would require a disposition of rights in subject
inventions of small business firms or nonprofit organizations
contractors in a manner that is inconsistent with this chapter,
including but not necessarily limited to the following:
* * * * * * *
(8) section 6 of the [Coal Research Development Act of
1960] Coal Research and Development Act (30 U.S.C. 666; 74
Stat. 337);
----------
FEDERAL NONNUCLEAR ENERGY RESEARCH AND DEVELOPMENT ACT OF 1974--PUBLIC
LAW 93-577 (42 U.S.C. 5902 ET SEQ.)
* * * * * * *
SHORT TITLE AND DEFINITIONS
Section 1. (a) This Act may be cited as the ``Federal
Nonnuclear Energy Research and Development Act of 1974''.
(b) In this Act--
(1) the term ``Department'' means the Department of
Energy; and
(2) the term ``Secretary'' means the Secretary of
Energy.
STATEMENT OF FINDINGS
Sec. 2. The Congress hereby finds that--
(a) The Nation is suffering from a shortage of
environmentally acceptable forms of energy.
(b) Compounding this energy shortage is our past and
present failure to formulate a comprehensive and aggressive
research and development program designed to make available to
American consumers our large domestic energy reserves including
fossil fuels, nuclear fuels, geothermal resources, solar
energy, and other forms of energy. This failure is partially
because the unconventional energy technologies have not been
judged to be economically competitive with traditional energy
technologies.
(c) The urgency of the Nation's energy challenge will
require commitments similar to those undertaken in the
Manhattan and Apollo projects; it will require that the Nation
undertake a research, development, and demonstration program in
nonnuclear energy technologies with a total Federal investment
which may reach or exceed $20,000,000,000 over the next decade.
(d) In undertaking such program, full advantage must be
taken of the existing technical and managerial expertise in the
various energy fields within Federal agencies and particularly
in the private sector.
(e) The Nation's future energy needs can be met if a
national commitment is made now to dedicate the necessary
financial resources, to enlist our scientific and technological
capabilities, and to accord the proper priority to developing
new nonnuclear energy options to serve national needs, conserve
vital resources, and protect the environment.
STATEMENT OF POLICY
Sec. 3. (a) It is the policy of the Congress to develop on
an urgent basis the technological capabilities to support the
broadest range of energy policy options through conservation
and use of domestic resources by socially and environmentally
acceptable means.
(b)(1) The Congress declares the purpose of this Act to be
to establish and vigorously conduct a comprehensive, national
program of basic and applied research and development,
including but not limited to demonstrations of practical
applications, of all potentially beneficial energy sources and
utilization technologies, within the [Energy Research and
Development Administration] Department.
(2) In carrying out this program, the [Administrator of the
Energy Research and Development Administration (hereinafter in
this Act referred to as the ``Administrator'')] Secretary shall
be governed by the terms of this Act and other applicable
provisions of law with respect to all nonnuclear aspects of the
research, development, and demonstration program; and the
policies and provisions of the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.), and other provisions of law shall
continue to apply to the nuclear research, development, and
demonstration program.
(3) In implementing and conducting the research,
development, and demonstration programs pursuant to this Act,
the [Administrator] Secretary shall incorporate programs in
specific nonnuclear technologies previously enacted into law,
including those established by the Solar Heating and Cooling
Demonstration Act of 1974 (Public Law 93-409), the Geothermal
Energy Research, Development, and Demonstration Act of 1974
(Public Law 93-410), and the Solar Energy Research,
Development, and Demonstration Act of 1974 (Public Law 93-473).
DUTIES AND AUTHORITIES OF THE [ADMINISTRATOR] SECRETARY
Sec. 4. The [Administrator] Secretary shall--(a) review the
current status of nonnuclear energy resources and current
nonnuclear energy research and development activities,
including research and development being conducted by Federal
and non-Federal entities;
(b) formulate and carry out a comprehensive Federal
nonnuclear energy research, development, and demonstration
program which will expeditiously advance the policies
established by this Act and other relevant legislation
establishing programs in specific energy technologies;
(c) utilize the funds authorized pursuant to this Act to
advance energy research and development by initiating and
maintaining, through fund transfers, grants or contracts,
energy research, development and demonstration programs or
activities utilizing the facilities, capabilities, expertise,
and experience of Federal agencies, national laboratories,
universities, nonprofit organizations, industrial entities, and
other non-Federal entities which are appropriate to each type
of research, development, and demonstration activity;
(d) establish procedures for periodic consultation with
representatives of science, industry, environmental
organizations, consumers, and other groups who have special
expertise in the areas of energy research, development, and
technology; and
(e) initiate programs to design, construct, and operate
energy facilities of sufficient size to demonstrate the
technical and economic feasibility of utilizing various forms
of nonnuclear energy.
GOVERNING PRINCIPLES
* * * * * * *
Sec. 5. * * *
(b) The Congress further directs that the execution of the
comprehensive research, development, and demonstration program
shall conform to the following principles:
(1) Research and development of nonnuclear energy
sources shall be pursued in such a way as to facilitate
the commercial availability of adequate supplies of
energy to all regions of the United States.
(2) In determining the appropriateness of Federal
involvement in any particular research and development
undertaking, the [Administrator] Secretary shall give
consideration to the extent to which the proposed
undertaking satisfies criteria including, but not
limited to, the following:
* * * * * * *
COMPREHENSIVE PLANNING AND PROGRAMMING
* * * * * * *
Sec. 6.
(b) * * *
* * * * * * *
(3) The [Administrator] Secretary shall assign program
elements and activities in specific nonnuclear energy
technologies to the short-term, middle-term, and long-term time
intervals, and shall present full and complete justification
for these assignments and the degree of emphasis for each.
These program elements and activities shall include, but not be
limited to, research, development, and demonstrations
designed--
(A) to advance energy conservation technologies,
including but not limited to--
(i) productive use of waste, including
garbage, sewage, agricultural wastes, and
industrial waste heat;
(ii) reuse and recycling of materials and
consumer products;
(iii) improvements in automobile design for
increased efficiency and lowered emissions,
including investigation of the full range of
alternatives to the internal combustion engine
and systems of efficient public transportation;
and
(iv) advanced urban and architectural design
to promote efficient energy use in the
residential and commercial sectors,
improvements in home design and insulation
technologies, small thermal storage units and
increased efficiency in electrical appliances
and lighting fixtures;
(B) to accelerate the commercial demonstration of
technologies for producing low-sulfur fuels suitable
for boiler use;
(C) to demonstrate improved methods for the
generation, storage, and transmission of electrical
energy through
(i) advances in gas turbine technologies,
combined power cycles, the use of low British
thermal unit gas and, if practicable,
magnetohydrodynamics;
(ii) storage systems to allow more efficient
load following, including the use of inertial
energy storage systems; and
(iii) improvement in cryogenic transmission
methods;
(D) to accelerate the commercial demonstration of
technologies for producing substitutes for natural gas,
including coal gasification: Provided, That the
[Administrator] Secretary shall invite and consider
proposals from potential participants based upon
Federal assistance and participation in the form of a
joint Federal-industry corporation, and recommendations
pursuant to this clause shall be accompanied by a
report on the viability of using this form of Federal
assistance or participation;
(E) to accelerate the commercial demonstration of
technologies for producing syncrude and liquid
petroleum products from coal: Provided, That the
[Administrator] Secretary shall invite and consider
proposals from potential participants based upon
Federal assistance and participation through guaranteed
prices or purchase of the products, and recommendations
pursuant to this clause shall be accompanied by a
report on the viability of using this form of Federal
assistance or participation;
(F) in accordance with the program authorized by the
Geothermal Energy Research, Development, and
Demonstration Act of 1974 (Public Law 93-410), to
accelerate the commercial demonstration of geothermal
energy technologies;
(G) to demonstrate the production of syncrude from
oil shale by all promising technologies including
insitu technologies;
(H) to demonstrate new and improved methods for the
extraction of petroleum resources, including secondary
and tertiary recovery of crude oil;
(I) to demonstrate the economics and commercial
viability of solar energy for residential and
commercial energy supply applications in accordance
with the program authorized by the Solar Heating and
Cooling Demonstration Act of 1974 (Public Law 93-409);
(J) to accelerate the commercial demonstration of
environmental control systems for energy technologies
developed pursuant to this Act;
(K) to investigate the technical and economic
feasibility of tidal power for supplying electrical
energy;
(L) to commercially demonstrate advanced solar energy
technologies in accordance with the Solar Energy
Research, Development, and Demonstration Act of 1974
(Public Law 93-473);
(M) to determine the economics and commercial
viability of the production of synthetic fuels such as
hydrogen and methanol;
(N) to commercially demonstrate the use of fuel cells
for central station electric power generation;
(O) to determine the economics and commercial
viability of in situ coal gasification;
(P) to improve techniques for the management of
existing energy systems by means of quality control;
application of systems analysis, communications, and
computer techniques; and public information with the
objective of improving the reliability and efficiency
of energy supplies and encourage the conservation of
energy resources;
(Q) to improve methods for the prevention and cleanup
of marine oil spills;
(R) to implement the Renewable Energy and Energy
Efficiency Technology Competitiveness Act of 1989 (42
U.S.C. 12001 et seq.); and
(S) to implement titles XX through XXIII of the
Energy Policy Act of 1992.
(c) Based upon the comprehensive plan developed under
subsection (a), the Secretary, in consultation with the
Advisory Board established under section 2302 of the Energy
Policy Act of 1992, shall develop and transmit to the Congress,
on or before September 1, 1978, a comprehensive environment and
safety program to insure the full consideration and evaluation
of all environmental, health, and safety impacts of each
element, program, or initiative contained in the nuclear and
nonnuclear energy research, development, and demonstration
plans. Such program shall be updated and transmitted to the
Congress annually as part of the report required under section
1.
FORMS OF FEDERAL ASSISTANCE
Sec. 7. (a) In carrying out the objectives of this Act, the
[Administrator] Secretary may utilize various forms of Federal
assistance and participation which may include but are not
limited to--
(1) joint Federal-industry experimental,
demonstration, or commercial corporations consistent
with the provisions of subsection (b) of this section;
(2) contractual arrangements with non-Federal
participants including corporations, consortia,
universities, governmental entities and nonprofit
institutions;
(3) contracts for the construction and operation of
federally owned facilities;
(4) Federal purchases or guaranteed price of the
products of demonstration plants or activities
consistent with the provisions of subsection (c) [of
the section];
(5) Federal loans to non-Federal entities conducting
demonstrations of new technologies;
(6) incentives, including financial awards, to
individual inventors, such incentives to be designed to
encourage the participation of a large number of such
inventors; and
(7) Federal loan guarantees and commitments thereof
as provided insection 19.
(b) Joint Federal-industry corporations proposed for
congressional authorization pursuant to this Act shall be
subject to the provisions of section 9 of this Act and shall
conform to the following guidelines except as otherwise
authorized by Congress:
(1) Each such corporation may design, construct,
operate, and maintain one or more experimental,
demonstration, or commercial-size facilities, or other
operations which will ascertain the technical,
environmental, and economic feasibility of a particular
energy technology. In carrying out this function, the
corporation shall be empowered, either directly or by
contract, to utilize commercially available
technologies, perform tests, or design, construct, and
operate pilot plants, as may be necessary for the
design of the full-scale facility.
(2) Each corporation shall have--
(A) a Board of nine directors consisting of
individuals who are citizens of the United
States, of whom one shall be elected annually
by the Board to serve as Chairman. The Board
shall be empowered to adopt and amend bylaws.
Five members of the Board shall be appointed by
the President of the United States, by and with
the advice and consent of the Senate, and four
members of the Board shall be appointed by the
President on the basis of recommendations
received by him from any non-Federal entity or
entities entering into contractual arrangements
to participate in the corporation;
(B) a President and such other officers and
employees as may be named and appointed by the
Board (with the rates of compensation of all
officers and employees being fixed by the
Board); and
(C) the usual powers conferred upon
corporations by the laws of the District of
Columbia.
(3) An appropriate time interval, not to exceed 12
years, shall be established for the term of Federal
participation in the corporation, at the expiration of
which the Board of Directors shall take such action as
may be necessary to dissolve the corporation or
otherwise terminate Federal participation and financial
interests. In carrying out such dissolution, the Board
of Directors shall dispose of all physical facilities
of the corporation in such manner and subject to such
terms and conditions as the Board determines are in the
public interest and consistent with existing law; and a
share of the appraised value of the corporate asset
proportional to the Federal participation in the
corporation, including the proceeds from the
disposition of such facilities, on the date of its
dissolution, after satisfaction of all its legal
obligations, shall be made available to the United
States and deposited in the Treasury of the United
States as miscellaneous receipts. All patent rights of
the corporation shall, on such date of dissolution, be
vested in the [Administrator] Secretary: Provided, That
Federal participation may be terminated prior to the
time established in the authorizing Act upon
recommendation of the Board of Directors.
(4) Any commercially valuable product produced by
demonstration facilities shall be disposed of in such
manner and under such terms and conditions as the
corporation shall prescribe. All revenues received by
the corporation from the sale of such products shall be
available to the corporation for use by it in defraying
expenses incurred in connection with carrying out its
functions to which this Act applies.
(5) The estimated Federal share of the construction,
operation, and maintenance cost over the life of each
corporation shall be determined in order to facilitate
a single congressional authorization of the full amount
at the time of establishment of the corporation.
(6) The Federal share of the cost of each such
corporation shall reflect:
(A) the technical and economic risk of the
venture,
(B) the probability of any financial return
to the non-Federal participants arising from
the venture,
(C) the financial capability of the potential
non-Federal participants, and
(D) such other factors as the [Administrator]
Secretary may set forth in proposing the
corporation: Provided, That in no instance
shall the Federal share exceed 90 per centum of
the cost.
(7) No such corporation shall be established unless
previously authorized by specific legislation enacted
by the Congress.
(c) Competitive systems of price supports proposed for
congressional authorization pursuant to this Act shall conform
to the following guidelines:
(1) The [Administrator] Secretary shall determine the
types and capacities of the desired full-scale,
commercial-size facility or other operation which would
demonstrate the technical, environmental, and economic
feasibility of a particular nonnuclear energy
technology.
(2) The [Administrator] Secretary may award planning
grants for the purpose of financing a study of the full
cycle economic and environmental costs associated with
the demonstration facility selected pursuant to
paragraph (1) of this subsection. Such planning grants
may be awarded to Federal and non-Federal entities
including, but not limited to, industrial entities,
universities, and nonprofit organizations. Such
planning grants may also be used by the grantee to
prepare a detailed and comprehensive bid to construct
the demonstration facility.
(3) Following the completion of the studies pursuant
to the planning grants awarded under paragraph (2) of
this subsection regarding each such potential price
supported demonstration facility for which the
[Administrator] Secretary intends to request
congressional authorization, he shall invite bids from
all interested parties to determine the minimum amount
of Federal price support needed to construct the
demonstration facility. The [Administrator] Secretary
may designate one or more competing entities, each to
construct one commercial demonstration facility. Such
designation shall be made on the basis of those
entities'
(A) commitment to construct the demonstration
facility at the minimum level of Federal price
supports,
(B) detailed plan of environmental
protection, and
(C) proposed design and operation of the
demonstration facility.
(4) The construction plans and actual construction of
the demonstration facility, together with all related
facilities, shall be monitored by the Environmental
Protection Agency. If additional environmental
requirements are imposed by the [Administrator]
Secretary after the designation of the successful
bidders and if such additional environmental
requirements result in additional costs, the
[Administrator] Secretary is authorized to renegotiate
the support price to cover such additional costs.
(5) The estimated amount of the Federal price support
for a demonstration facility's product over the life of
such facility shall be determined by the
[Administrator] Secretary to facilitate a single
congressional authorization of the full amount of such
support at the time of the designation of the
successful bidders.
(6) No price support program shall be implemented
unless previously authorized by specific legislation
enacted by the Congress.
(d) Nothing in this section shall preclude Federal
participation in and support for, joint university-industry
nonnuclear energy research efforts.
DEMONSTRATIONS
Sec. 8. (a) The [Administrator] Secretary is authorized
to--
(1) identify opportunities to accelerate the
commercial applications of new energy technologies, and
provide Federal assistance for or participation in
demonstration projects (including pilot plants
demonstrating technological advances and field
demonstrations of new methods and procedures, and
demonstrations of prototype commercial applications for
the exploration, development, production,
transportation, conversion, and utilization of energy
resources); and
(2) enter into cooperative agreements with non-
Federal entities to demonstrate the technical
feasibility and economic potential of energy
technologies on a prototype or full-scale basis.
(b) In reviewing potential projects, the [Administrator]
Secretary shall consider criteria including but not limited
to--
(1) the anticipated research, development, and
application objectives to be achieved by the activities
or facilities proposed;
(2) the economic, environmental, and societal
significance which a successful demonstration may have
for the national fuels and energy system;
(3) the relationship of the proposal to the criteria
of priority set forth in section 5(b)(2);
(4) the availability of non-Federal participants to
construct and operate the facilities or perform the
activities associated with the proposal and to
contribute to the financing of the proposal;
(5) the total estimated cost including the Federal
investment and the probable time schedule;
(6) the proposed participants and the proposed
financial contributions of the Federal Government and
of the non-Federal participants; and
(7) the proposed cooperative arrangement, agreements
among the participants, and form of management of the
activities.
(c)(1) A financial award under this section may be made only
to the extent of the Federal share of the estimated total
design and construction costs, plus operation and maintenance
costs.
(2) For the purposes of this Act the non-Federal share may
be in any form, including, but not limited to, lands or
interests therein needed for the project or personal property
or services, the value of which shall be determined by the
[Administrator] Secretary.
(d)(1) The Administrator of the Energy Research and
Development Administration shall, within six months of
enactment of this Act, promulgate regulations establishing
procedures for submission of proposals to the Energy Research
and Development Administration for the purposes of this Act.
Such regulations shall establish a procedure for selection of
proposals which--
(A) provides that projects will be carried out under
such conditions and varying circumstances as will
assist in solving energy extraction, transportation,
conversion, conservation, and end-use problems of
various areas and regions, under representative
geological, geographic, and environmental conditions;
and
(B) provides time schedules for submission of, and
action on, proposal requests for the purposes of
implementing the goals and objectives of this Act.
(2) Such regulations also shall specify the types and form
of the information, data, and support documentation that are to
be contained in proposals for each form of Federal assistance
or participation set forth in subsection 7(a): Provided, That
such proposals to the extent possible shall include, but not be
limited to--
(A) specification of the technology;
(B) description of prior pilot plant operating
experience with the technology;
(C) preliminary design of the demonstration plant;
(D) time tables containing proposed construction and
operation plans;
(E) budget-type estimates of construction and
operating costs;
(F) description and proof of title to land for
proposed site, natural resources, electricity and water
supply and logistical information related to access to
raw materials to construct and operate the plant and to
dispose of salable products produced from the plant;
(G) analysis of the environmental impact of the
proposed plant and plans for disposal of wastes
resulting from the operation of the plant;
(H) plans for commercial use of the technology if the
demonstration is successful;
(I) plans for continued use of the plant if the
demonstration is successful; and
(J) plans for dismantling of the plant if the
demonstration is unsuccessful or otherwise abandoned.
(3) The [Administrator] Secretary shall from time to time
review and, as appropriate, modify and repromulgate regulations
issued pursuant to this section.
(e) If the estimate of the Federal investment with respect to
construction costs of any demonstration project proposed to be
established under this section exceeds $50,000,000, no amount
may be appropriated for such project except as specifically
authorized by legislation hereafter enacted by the Congress.
(f) If the total estimated amount of the Federal contribution
to the construction cost of a demonstration project does not
exceed $50,000,000, the [Administrator] Secretary is authorized
to proceed with the negotiation of agreements and
implementation of the proposal subject to the availability of
funds under the authorization of appropriations pursuant to
section 16: Provided, That if such Federal contribution to the
construction cost is estimated to exceed $25,000,000 the
[Administrator] Secretary shall provide a full and
comprehensive report on the proposed demonstration project to
the appropriate committees of the Congress and no funds may be
expended for any agreement under the authority granted by this
section prior to the expiration of sixty calendar days (not
including any day on which either House of Congress is not in
sessionbecause of an adjournment of more than three calendar
days to a day certain) from the date on which the [Administrator's]
Secretary's report on the proposed project is received by the Congress.
Such reports shall contain an analysis of the extent to which the
proposed demonstration satisfies the criteria specified in subsection
(b) of this section.
PATENT POLICY
Sec. 9. (a) Whenever any invention is made or conceived in
the course of or under any contract of the [Administration]
Department, other than nuclear energy research, development,
and demonstration pursuant to the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.) and the [Administrator] Secretary
determines that--
(1) the person who made the invention was employed or
assigned to perform research, development, or
demonstration work and the invention is related to the
work he was employed or assigned to perform, or that it
was within the scope of his employment duties, whether
or not it was made during working hours, or with a
contribution by the Government of the use of Government
facilities, equipment, materials, allocated funds,
information proprietary to the Government, or services
of Government employees during working hours; or
(2) the person who made the invention was not
employed or assigned to perform research, development,
or demonstration work, but the invention is
nevertheless related to the contract or to the work or
duties he was employed or assigned to perform, and was
made during working hours, or with a contribution from
the Government of the sort referred to in clause (1);
title to such invention shall vest in the United
States, and if patents on such invention are issued
they shall be issued to the United States, unless in
particular circumstances the [Administrator] Secretary
waives all or any part of the rights of the United
States to such invention in conformity with the
provisions of this section.
(b) Each contract entered into by the [Administration]
Department with any person shall contain effective provisions
under which such person shall furnish promptly to the
[Administration] Department a written report containing full
and complete technical information concerning any invention,
discovery, improvement, or innovation which may be made in the
course of or under such contract.
(c) Under such regulations in conformity with the
provisions of this section as the [Administrator] Secretary
shall prescribe, the [Administrator] Secretary may waive all or
any part of the rights of the United States under this section
with respect to any invention or class of inventions made or
which may be made by any person or class of persons in the
course of or under any contract of the [Administration]
Department if he determines that the interests of the United
States and the general public will best be served by such
waiver. The [Administration] Department shall maintain a
publicly available, periodically updated record of waiver
determinations. In making such determinations, the
[Administrator] Secretary shall have the following objectives:
(1) Making the benefits of the energy research,
development, and demonstration program widely available
to the public in the shortest practicable time.
(2) Promoting the commercial utilization of such
inventions.
(3) Encouraging participation by private persons in
the [Administration's] Department's energy research,
development, and demonstration program.
(4) Fostering competition and preventing undue market
concentration or the creation or maintenance of other
situations inconsistent with the antitrust laws.
(d) In determining whether a waiver to the contractor at
the time of contracting will best serve the interests of the
United States and the general public, the [Administrator]
Secretary shall specifically include as considerations--
(1) the extent to which the participation of the
contractor will expedite the attainment of the purposes
of the program;
(2) the extent to which a waiver of all or any part
of such rights in any or all fields of technology is
needed to secure the participation of the particular
contractor;
(3) the extent to which the contractor's commercial
position may expedite utilization of the research,
development, and demonstration program results;
(4) the extent to which the Government has
contributed to the field of technology to be funded
under the contract;
(5) the purpose and nature of the contract, including
the intended use of the results developed thereunder;
(6) the extent to which the contractor has made or
will make substantial investment of financial resources
or technology developed at the contractor's private
expense which will directly benefit the work to be
performed under the contract;
(7) the extent to which the field of technology to be
funded under the contract has been developed at the
contractor's private expense;
(8) the extent to which the Government intends to
further develop to the point of commercial utilization
the results of the contract effort;
(9) the extent to which the contract objectives are
concerned with the public health, public safety, or
public welfare;
(10) the likely effect of the waiver on competition
and market concentration; and
(11) in the case of a nonprofit educational
institution, the extent to which such institution has a
technology transfer capability and program, approved by
the [Administrator] Secretary as being consistent with
the applicable policies of this section.
(e) In determining whether a waiver to the contractor
or inventor of rights to an identified invention will
best serve the interests of the United States and the
general public, the [Administrator] Secretary shall
specifically include as considerations paragraphs (4)
through (11) of subsection (d) as applied to the
invention and--
(1) the extent to which such waiver is a reasonable
and necessary incentive to call forth private risk
capital for the development and commercialization of
the invention; and
(2) the extent to which the plans, intentions, and
ability of the contractor or inventor will obtain
expeditious commercialization of such invention.
(f) Whenever title to an invention is vested in the
United States, there may be reserved to the contractor
or inventor--
(1) a revocable or irrevocable nonexclusive, paid-
up license for the practice of the invention throughout
the world; and
(2) the rights to such invention in any foreign
country where the United States has elected not to
secure patent rights and the contractor elects to do
so, subject to the rights set forth in paragraphs (2),
(3), (6), and (7) of subsection (h): Provided, That
when specifically requested by the [Administration]
Department and three years after issuance of such a
patent, the contract shall submit the report specified
in subsection (h)(1) of this section.
* * * * * * *
(j) The [Administrator] Secretary shall, in granting
waivers or licenses, consider the small business status of the
applicant.
(k) The [Administrator] Secretary is authorized to take all
suitable and necessary steps to protect any invention or
discovery to which the United States holds title, and to
require that contractors or persons who acquire rights to
inventions under this section protect such inventions.
(l) The [Administration] Department shall be considered a
defense agency of the United States for the purpose of chapter
17 of title 35 of the United States Code. [2]
(m) As used in this section--
(1) the term ``person'' means any individual,
partnership, corporation, association, institution, or
other entity;
(2) the term ``contract'' means any contract, grant,
agreement, understanding, or other arrangement, which
includes research, development, or demonstration work,
and includes any assignment, substitution of parties,
or subcontract executed or entered into thereunder;
(3) the term ``made'', when used in relation to any
invention means the conception or first actual
reduction to practice of such invention;
(4) the term ``invention'' means inventions or
discoveries, whether patented or unpatented; and
(5) the term ``contractor'' means any person having a
contract with or on behalf of the [Administration]
Department.
(n) Within twelve months after the date of the
enactment of this Act, the [Administrator] Secretary
with the participation of the Attorney General, the
Secretary of Commerce, and other officials as the
President may designate, shall submit to the President
and the appropriate congressional committees a report
concerning the applicability of existing patent
policies affecting the programs under this Act, along
with his recommendations for amendments or additions to
the statutory patent policy, including his
recommendations on mandatory licensing, which he deems
advisable for carrying out the purposes of this Act.
RELATIONSHIP TO ANTITRUST LAWS
Sec. 10. (a) Nothing in this Act shall be deemed to convey
to any individual, corporation, or other business organization
immunity from civil or criminal liability, or to create
defenses to actions, under the antitrust laws.
(b) As used in this section, the term ``antitrust law''
means--
(1) the Act entitled ``An Act to protect trade and
commerce against unlawful restraints and monopolies'',
approved July 2, 1890 (15 U.S.C. 1 et seq.), as
amended;
(2) the Act entitled ``An Act to supplement existing
laws against unlawful restraints and monopolies, and
for other purposes'', approved October 15, 1914 (15
U.S.C. 12 et seq.) as amended;
(3) the Federal Trade Commission Act (15 U.S.C. 41 et
seq.), as amended;
(4) sections 73 and 74 of the Act entitled ``An Act
to reduce taxation, to provide revenue for the
Government, and for other purposes'', approved August
27, 1894 (15 U.S.C. 8 and 9), as amended; and
(5) the Act of June 19, 1936, chapter 592 (15 U.S.C.
13, 13a, 13b, and 21a).
ACQUISITION OF ESSENTIAL MATERIALS
Sec. 12. (a) The President may, by rule or order, require
the allocation of, or the performance under contracts or orders
(other than contracts of employment) relating to, supplies of
materials and equipment if he finds that--
(1) such supplies are scarce, critical, and essential
to carry out the purposes of this Act; and (2) such
supplies cannot reasonably be obtained without
exercising the authority granted by this section.
[(b) The President shall transmit any rule or order
proposed under subsection (a) of this section (bearing an
identification number) to each House of Congress on the date on
which it is proposed. If such proposed rule or order is
transmitted to the Congress such proposed rule or order shall
take effect at the end of the first period of thirty calendar
days of continuous session of Congress after the date on which
such proposed rule or order is transmitted to it unless,
between the date of transmittal and the end of the thirty day
period, either House passes a resolution stating in substance
that such House does not favor such a proposed rule or order.]
(b) A rule or order under subsection (a) shall be deemed to
be a major rule subject to the requirements and procedures in
chapter 8 of title 5, United States Code.
WATER RESOURCE EVALUATION
Sec. 13. (a) The Water Resources Council shall undertake
assessments of water resource requirements and water supply
availability for any nonnuclear energy technology and any
probable combinations of technologies which are the subject of
Federal research and development efforts authorized by this
Act, and the commercial development of which could have
significant impacts on water resources. In the preparation of
its assessment, the Council shall--
(1) utilize to the maximum extent practicable data on
water supply and demand available in the files of
member agencies of the Council;
(2) collect and compile any additional data it deems
necessary for complete and accurate assessments;
(3) give full consideration to the constraints upon
availability imposed by treaty, compact, court decree,
State water laws, and water rights granted pursuant to
State and Federal law;
(4) assess the effects of development of such
technology on water quality;
(5) include estimates of cost associated with
production and management of the required water supply,
and the cost of disposal of waste water generated by
the proposed facility or process;
(6) assess the environmental, social, and economic
impact of any change in use of currently utilized water
resource that may be required by the proposed facility
or process; and
(7) consult with the Council on Environmental
Quality.
(b) For any proposed demonstration project which may
involve a significant impact on water resources, the
[Administrator] Secretary shall, as a precondition of Federal
assistance to that project, request the Water Resources Council
to prepare an assessment of water requirements and availability
for such project. A report on the assessment shall be published
in the Federal Register for public review thirty days prior to
the expenditure of Federal funds on the demonstration.
(c) For any proposed Federal assistance for commercial
application of energy technologies pursuant to this Act, the
Water Resource Council shall, as a precondition of such Federal
assistance, provide to the [Administrator] Secretary an
assessment of the availability of adequate water resources for
such commercial application and an evaluation of the
environmental, social, and economic impacts of the dedication
of water to such uses.
(d) Reports of assessments and evaluations prepared by the
Council pursuant to subsections (a) and (c) shall be published
in the Federal Register and at least ninety days shall be
provided for public review and comment. Comments received shall
accompany the reports when they are submitted to the
[Administrator] Secretary and shall be available to the public.
(e) The Council shall include a broad survey and analysis
of regional and national water resource availability for energy
development in the biennial assessment required by section
102(a) of the WaterResources Planning Act (42 U.S.C. 1962a-
1(a)).
(f) The [Administrator] Secretary shall, upon enactment of
this subsection, be a member of the Council.
* * * * * * *
APPROPRIATION AUTHORIZATION
Sec. 16. (a) There may be appropriated to the
[Administrator] Secretary to carry out the purposes of this Act
such sums as may be authorized in annual authorization Acts.
[(b) Of the amounts appropriated pursuant to subsection (a)
of this section--]
[(1) $500,000 annually shall be made available by
fund transfer to the Council on Environmental Quality
for the purposes authorized by section 11; and]
[(2) not to exceed $1,000,000 annually shall be made
available by fund transfer to the Water Resources
Council for the purposes authorized by section 13]
[(c) There also may be appropriated to the Administrator by
separate Acts such amounts as are required for demonstration
projects for which the total Federal contribution to
construction costs exceeds $50,000,000.]
CENTRAL SOURCE OF NONNUCLEAR ENERGY INFORMATION
Sec. 17. The [Administrator] Secretary shall promptly
establish, develop, acquire, and maintain a central source of
information on all energy resources and technology in
furtherance of the [Administrator's] research, development, and
demonstration mission carried out directly or indirectly under
this Act. When the [Administrator] Secretary determines that
such information is needed to carry out the purposes of this
Act, he may acquire proprietary and other information (a) by
purchase through negotiation or by donation from any person, or
(b) from another Federal agency. The information maintained
by the [Administrator] Secretary shall be made available to the
public, subject to the provisions of section 552 of title 5,
United States Code, and section 1905 of title 18, United States
Code, and to other Government agencies in a manner that will
facilitate its dissemination; Provided, That upon a showing
satisfactory to the [Administrator] Secretary by any person
that any information, or portion thereof, obtained under this
section by the [Administrator] Secretary directly or indirectly
from such person, would, if made public, divulge
(1) trade secrets or
(2) other proprietary information of such person, the
[Administrator] Secretary shall not disclose such
information and disclosure thereof shall be punishable
under section 1905 [or] of title 18, United States
Code: Provided further, That the [Administrator]
Secretary shall, upon request, provide such information
to
(A) any delegate of the [Administrator]
Secretary for the purpose of carrying out this
Act, and
(B) the Attorney General, the Secretary of
Agriculture, the Secretary of the Interior, the
Federal Trade Commission, [the Federal Energy
Administration], the Environmental Protection
Agency, [the Federal Power Commission], the
Federal Energy Regulatory Commission, the
[General Accounting Office], [Government
Accountability Office], other Federal agencies,
when necessary to carry out their duties and
responsibilities under this and other statutes,
but such agencies and agency heads shall not
release such information to the public. This
section is not authority to withhold
information from Congress or any committee of
Congress upon request of the chairman or
ranking minority member.
[ENERGY INFORMATION
[Sec. 18. The Administrator is, upon request, authorized to
obtain energy information under section 11(d) of the Energy
Supply and Environmental Coordination Act of 1974, as amended
(15 U.S.C. 796(d)).
[LOAN GUARANTEES FOR ALTERNATIVE FUEL DEMONSTRATION
FACILITIES
[Sec. 19. (a) It is the purpose of this section--
[(1) to assure adequate Federal support to foster a
demonstration program to produce alternative fuels from
coal, oil shale, biomass, and other domestic resources;
[(2) to authorize assistance, through loan guarantees
under subsection (b) and (y) for construction and
startup and related costs, to demonstration facilities
for the conversion of domestic coal, oil shale,
biomass, and other domestic resources into alternative
fuels; and
[(3) to gather information about the technological,
economic, environmental, and social costs, benefits,
and impacts of such demonstration facilities.
[(b)(1) Except as provided in paragraph (5) of this
subsection and subsection (y) of this section the Administrator
is authorized, in accordance with such rules and regulations as
he shall prescribe after consultation with the Secretary of the
Treasury, to guarantee and to make commitments to guarantee, in
such manner and subject to such conditions (not inconsistent
with the provisions of this Act) as he deems appropriate, the
payment of interest on, and the principal balance of, bonds,
debentures, notes, and other obligations issued by, or on
behalf of, any borrower for the purpose of financing the
construction and startup costs of demonstration facilities for
the conversion of domestic coal, oil shale, biomass, and other
domestic resources into alternative fuels: Provided, That no
loan guarantee for a full sized oil shale facility shall be
provided under this section until after successful
demonstration of a modular facility producing between six and
ten thousand barrels per day, taking into account such
considerations as water usage, environmental effects, waste
disposal, labor conditions, health and safety, and the
socioeconomic impacts on local communities: Provided further,
That no loan guarantee shall be available under this subsection
for the manufacture of component parts for demonstration
facilities eligible for assistance under this subsection.
[(2) An applicant for any financial assistance under this
section shall provide information to the Administrator in such
form and with such content as the Administrator deems
necessary.
[(3) Prior to issuing any guarantee under this section the
Administrator shall obtain the concurrence of the Secretary of
the Treasury with respect to the timing, interest rate, and
substantial terms and conditions of such guarantee. The
Secretary of the Treasury shall insure to the maximum extent
feasible that the timing, interest rate, and substantial terms
and conditions of such guarantee will have the minimum possible
impact on the capital markets of the United States, taking into
account other Federal direct and indirect securities
activities.
[(4) The full faith and credit of the United States is
pledged to the payment of all guarantees issued under this
section with respect to principal and interest.
[(5)(A) The Administrator is authorized, in the case of a
facility for the conversion of oil shale to alternative fuels
which is determined by the Administrator pursuant to the
proviso in paragraph (1) of this subsection, to be constructed
at a modular size, to enter into a cooperative agreement with
the applicant in accordance with section 8 of this Act and the
other provisions of this Act to share the estimated total
design and construction costs, plus operation and maintenance
costs, of such modular facility. The Federal share shall not
exceed 75 per centum of such costs. All receipts for the sale
of any products produced during the operation of the facility
shall be used to offset the costs incurred in the operation and
maintenance of the facility. The provisions of subsections (d),
(e), (k), (m), (p), (s), (t), (u), (v), (w), and (x) shall
apply to any such modular facility. The provisions of this
section shall apply to any loan guarantee for such modular
facility.
[(B) After successful demonstration of the modular
facility, as determined by the Administrator, the facility is
eligible for financial assistance under this section for
purposes of expansion to a full sized facility and the
applicant may purchase the Federal interest in the modular
facility as represented by the Federal share thereof by means
of (i) a cash payment to the United States, or (ii) a share of
the product or sales resulting from such expanded operation, as
determined by the Administrator. If expansion of such facility
is determined not to be warranted by the Administrator, he may,
at the option of the applicant, dispose of the modular facility
to the applicant at not less than fair market value, as
determined by the Administrator as of the date of the disposal,
or otherwise dispose of it, in accordance with applicable
provisions of law, and distribute the net proceeds thereof,
after expenses of such disposal, to the applicant in proportion
to the applicant's share of the costs of such facility.
[(6) To the extent possible, loan guarantees shall be
issued on the basis of competitive bidding among guarantee
applicants in a particular technology area.
[(c) The Administrator, with due regard for the need for
competition, shall guarantee or make a commitment to guarantee
any obligation under subsection (b) or (y) only if--
[(1) the Administrator is satisfied that the
financial assistance applied for is necessary to
encourage financial participation;
[(2) the amount guaranteed to any borrower at any
time does not exceed--
[(A) an amount equal to 75 per centum of the
project cost of the demonstration facility as
estimated at the time the guarantee is issued,
which cost shall not include amounts expended
for facilities and equipment used in the
extraction of a mineral other than coal or
shale, and in the case of coal only to the
extent that the Administrator determines that
the coal is to be converted to alternative
fuel; and
[(B) an amount equal to 60 per centum of that
portion of the actual total project cost of any
demonstration facility which exceeds the
project cost of such facility as estimated at
the time the loan guarantee is issued;
[(3) the Administrator has determined that there will
be a continued reasonable assurance of full repayment;
[(4) the obligation is subject to the condition that
it not be subordinated to any other financing;
[(5) the Administrator has determined, taking into
consideration all reasonably available forms of
assistance under this section and other Federal and
State statutes, that the impacts resulting from the
proposed demonstration facility have been fully
evaluated by the borrower, the Administrator, and the
Governor of the affected State, and that effective
steps have been taken or will be taken in a timely
manner to finance community planning and development
costs resulting from such facility under this section,
under other provisions of law, or by other means;
[(6) the maximum maturity of the obligation does not
exceed twenty years, or 90 per centum of the projected
useful economic life of the physical assets of the
demonstration facility covered by the guarantee,
whichever is less, as determined by the Administrator;
[(7) the Administrator has determined that, in the
case of any demonstration or modular facility planned
to be located on Indian lands, the appropriate Indian
tribe, with the approval of the Secretary of the
Interior, has given written consent to such location;
[(8) the obligation provides for the orderly and
ratable retirement of the obligation and includes
sinking fund provisions, installment payment provisions
or other methods of payments and reserves as may be
reasonably required by the Administrator. Prior to
approving and repayment schedule the Administrator may
consider the date on which operating revenues are
anticipated to be generated by the project. To the
maximum extent possible repayment or provision
therefore shall be required to be made in equal payment
payable at equal intervals; and
[(9) the obligation provides that the Administrator
shall, after, a period of not less than ten years from
issuance of the obligation, taking into consideration
whether the Government's needs for information to be
derived from the project have been substantially met
and whether the project is capable of commercial
operation, determine the feasibility and advisability
of terminating the Federal participation in the
project. In the event that such determination is
positive, the Administrator shall notify the borrower
and provide the borrower with not less than two nor
more than three years in which to find alternative
financing. At the expiration of the designated period
of time, if the borrower has been unable to secure
alternative financing, the Administrator is authorized
to collect from the borrower an additional fee of 1 per
centum per annum on the remaining obligation to which
the Federal guarantee applies.
* * * * * * *
[(e)(1) As soon as the Administrator knows the geographic
location of a proposed facility for which a guarantee or a
commitment to guarantee or cooperative agreement is sought
under this section, he shall inform the Governor of the State,
and officials of each political subdivision and Indian Tribe,
as appropriate, in which the facility would be located or which
would be impacted by such facility. The Administrator shall not
guarantee or make a commitment to guarantee or enter into a
cooperative agreement under subsection (b) or subsection (y) of
this section, if the Governor of the State in which the
proposed facility would be located recommends that such action
not be taken, unless the Administrator finds that there is an
overriding national interest in taking such action in order to
achieve the purpose of this section. If the Administrator
decides to guarantee or make a commitment to guarantee or enter
into a cooperative agreement despite a Governor's
recommendation not to take such action, the Administrator shall
communicate, in writing, to the Governor reasons for not
concurring with such recommendation. This Administrator's
decision, pursuant to this subsection, shall be final unless
determined upon judicial review initiated by the Governor to be
unlawful by the reviewing court pursuant to 5 U.S.C. 706(2) (A)
through (D). Such review shall take place in the United States
court of appeals for the circuit in which the State involved is
located, upon application made within ninety days from the date
of such decision. The Administrator shall, by regulation,
establish procedures for review of, and comment on, the
proposed facility by States, local political subdivisions, and
Indian tribes which may be impacted by such facility, and the
general public.
(2) The Administrator shall review and approve the plans of
the applicant for the construction and operation of any
demonstration and related facilities constructed or to be
constructed with assistance under this section. Such plans and
the actual construction shall include such monitoring and other
data-gathering costs associated with such facility as are
required by the comprehensive plan and program under this
section. The Administrator shall determine the estimated total
cost of such demonstration facility, including, but not limited
to, construction costs, startup costs, costs to political
subdivisions and Indian tribe by such facility, and cost of any
water storage facilities needed in connection with such
demonstration facility, and determine who shall pay such costs.
Such determination shall not be binding upon the States,
political subdivisions, or Indian tribes.
[(3) There is hereby established a panel to advise the
Administrator on matters relating to the program authorized by
this section, including, but not limited to, the impact of the
demonstration facilities on communities and States and Indian
tribes, the environmental and health and safety effects of such
facilities, and the means, measures, and planning for
preventing or mitigating such impacts, and other matters
relating to the development of alternative fuels and other
energy sources under this section. The panel shall include such
Governors or their designees as shall be designated by the
Chairman of the National Governors Conference. Representatives
of Indian tribes, industry, environmental organizations, and
the general public shall be appointed by the Administrator. The
Chairman of the panel shall be selected by the Administrator.
No person shall be appointed to the panel who has a financial
interest in any applicant applying for assistance under this
section. Members of the panel shall serve without compensation.
The provisions of section 106(e) of the Energy Reorganization
Act of 1974 (42 U.S.C. 5816(e)) shall apply to the panel.
[(f) Except in accordance with reasonable terms and
conditions contained in the written contract of guarantee, no
guarantee issued or commitment to guarantee made under this
section shall be terminated, canceled, or otherwise revoked.
Such a guarantee or commitment shall be conclusive evidence
that the underlying obligation is in compliance with the
provisions of this section and that such obligation has been
approved and is legal as to principal, interest, and other
terms. Subject to the conditions of the guarantee or commitment
to guarantee, such a guarantee shall be incontestable in the
hands of the holder of the guaranteed obligation, except as to
fraud or material misrepresentation on the part of the holder.
[(g)(1) If there is a default by the borrower, as defined
in regulations promulgated by the Administrator and in the
guarantee contract, the holder of the obligation shall have the
right to demand payment of the unpaid amount from the
Administrator. Within such period as may be specified in the
guarantee or related agreements, the Administrator shall pay to
the holder of the obligation the unpaid interest on, and unpaid
principal of, the guaranteed obligation as to which the
borrower has defaulted, unless the Administrator finds that
there was no default by the borrower in the payment of interest
or principal or that such default has been remedied. Nothing in
this section shall be construed to preclude any forebearance by
the holder of the obligation for the benefit of the borrower
which may be agreed upon by the parties to the guaranteed
obligation and approved by the Administrator.
[(2) If the Administrator makes a payment under paragraph
(1) of this subsection, the Administrator shall be subrogated
to the rights of the recipient of such payment (and such
subrogation shall be expressly set forth in the guarantee or
related agreements), including the authority to complete,
maintain, operate, lease, or otherwise dispose of any property
acquired pursuant to such guarantee or related agreements, or
any other property of the borrower (of a value equal to the
amount of such payment) to the extent that the guarantee
applies to amounts in excess of the estimated project cost
under subsection (c)(2)(B), without regard to the provisions of
the Federal Property and Administrative Services Act of 1949,
as amended, except section 207 of that Act (40 U.S.C. 488), or
any other law, or to permit the borrower pursuant to an
agreement with the Administrator, to continue to pursue the
purposes of the demonstration facility if the Administrator
determines that this is in the public interest. The rights of
the Administrator with respect to any property acquired
pursuant to such guarantee or related agreements, shall be
superior to the rights of any other person with respect to such
property.
[(3) In the event of a default on any guarantee under this
section, the Administrator shall notify the Attorney General,
who shall take such action as may be appropriate to recover the
amounts of any payments made under paragraph (1) including any
payment of principal and interest under subsection (h) from
such assets of the defaulting borrower as are associated with
the demonstration facility, or from any other security included
in the terms of the guarantee.
[(4) For purposes of this section, patents, including any
inventions for which a waiver was made by the Administrator
under section 9 of this Act, and technology resulting from the
demonstration facility, shall be treated as project assets of
such facility. The guarantee agreement shall include such
detailed terms and conditions as the Administrator deems
appropriate to protect the interests of the United States in
the case of default and to have available all the patents and
technology necessary for any person selected, including, but
not limited to the Administrator, to complete and operate the
defaulting project. Furthermore, the guarantee agreement shall
contain a provision specifying that patents, technology, and
other proprietary rights which are necessary for the completion
or operation of the demonstration facility shall be available
to the United States and its designees on equitable terms,
including due considerations to the amount of the United States
default payments. Inventions made or conceived in the course of
or under such guarantee, title to which is vested in the United
States under this Act, shall not be treated as project assets
of such facility for disposal purposes under this subsection,
unless the Administrator determines in writing that it is in
the best interests of the United States to do so.
[(h) With respect to any obligation guaranteed under this
section, the Administrator is authorized to enter into a
contract to pay, and to pay, holders of the obligations, for
and on behalf of the borrowers, from the fund established by
this section, the principal and interest payments which become
due and payable on the unpaid balance of such obligation if the
Administrator finds that--
[(1) the borrower is unable to meet such payments and
is not in default; it is in the public interest to
permit the borrower to continue to pursue the purposes
of such demonstration facility; and the probable net
benefit to the Federal Government in paying such
principal and interest will be greater than that which
would result in the event of a default;
[(2) the amount of such payment which the
Administrator is authorized to pay shall be no greater
than the amount of principal and interest which the
borrower is obligated to pay under the loan agreement;
and
[(3) the borrower agrees to reimburse the
Administrator for such payment on terms and conditions,
including interest, which are satisfactory to the
Administrator.
[(i) Regulations required by this section shall be issued
within one hundred and eighty days after enactment of this
section. All regulations under this section and any amendments
thereto shall be issued in accordance with section 553 of title
5, of the United States Code.
[(j) The Administrator shall charge and collect fees for
guarantees of obligations authorized by subsection (b)(1), in
amounts which (1) are sufficient in the judgment of the
Administrator to cover the applicable administrative costs, and
(2) reflect the percentage of projects costs guaranteed. In no
event shall the fee be less than 1 per centum per annum of the
outstanding indebtedness covered by the guarantee. Nothing in
this subsection shall be construed to apply to community
planning and development assistance pursuant to subsection (k)
of this section.
[(k)(1) In accordance with such rules and regulations as
the Administrator inconsultation with the Secretary of the
Treasury shall prescribe, and subject to such terms and conditions as
he deems appropriate, the Administrator is authorized, for the purpose
of financing essential community development and planning which
directly result from, or are necessitated by, one or more demonstration
facilities assisted under this section to--
[(A) guarantee and make commitments to guarantee the
payment of interest on, and the principal balance of
obligations for such financing issued by eligible
States, political subdivisions, or Indian tribes,
[(B) guarantee and make commitments to guarantee the
payment of taxes imposed on such demonstration
facilities by eligible non-Federal taxing authorities
which taxes are earmarked by such authorities to
support the payment of interest and principal on
obligations for such financing, and
[(C) require that the applicant for assistance for a
demonstration facility under this section advance sums
of eligible States, political subdivisions, and Indian
tribes to pay for the financing of such development and
planning: Provided, That the State, political
subdivision, or Indian tribe agrees to provide tax
abatement credits over the life of the facilities for
such payments by such applicant.
[(2) Prior to issuing any guarantee under this subsection,
the Administrator shall obtain the concurrence of the Secretary
of the Treasury with respect to the timing, interest rate, and
substantial terms and conditions of such guarantee. The
Secretary of the Treasury shall insure to the maximum extent
feasible that the timing, interest rate, and substantial terms
and conditions of such guarantee will have the minimum possible
impact on the capital markets of the United States, taking into
account other Federal direct and indirect securities
activities.
[(3) In the event of any default by the borrower in the
payment of taxes guaranteed by the Administrator under this
subsection, the Administrator shall pay out of the fund
established by this section such taxes at the time or times
they may fall due, and shall have by reason of such payment a
claim against the borrower for all sums paid plus interest.
[(4) If after consultation with the State, political
subdivision, or Indian tribe, the Administrator finds that the
financial assistance programs of paragraph (1) of this
subsection will not result in sufficient funds to carry out the
purposes of this subsection, then the Administrator may--
[(A) make direct loans to the eligible States,
political subdivisions, or Indian tribes for such
purposes: Provided, That such loans shall be made on
such reasonable terms and conditions as the
Administrator shall prescribe: Provided further, That
the Administrator may waive repayment of all or part of
a loan made under this paragraph, including interest,
if the State or political subdivision or Indian tribe
involved demonstrates to the satisfaction of the
Administrator that due to a change in circumstances
there will be net adverse impacts resulting from such
demonstration facility that would probably cause such
State, subdivision, or tribe to default on the loan; or
[(B) require that any community development and
planning costs which are associated with, or result
from, such demonstration facility and which are
determined by the Administrator to be appropriate for
such inclusion shall be included in the total costs of
the demonstration facility.
[(5) The Administrator is further authorized to make grants
to States, political subdivisions, or Indian tribes for
studying and planning for the potential economic,
environmental, and social consequences of demonstration
facilities, and for establishing related management expertise.
[(6) At any time the Administrator may, with the
concurrence of the Secretary of the Treasury, redeem, in whole
or in part, out of the fund established by this section, the
debt obligations guaranteed or the debt obligations for which
tax payments are guaranteed under this subsection.
[(7) When one or more States, political subdivisions, or
Indian tribes would be eligible for assistance under this
subsection, but for the fact that construction and operation of
the demonstration facilities occurs outside its jurisdiction,
the Administrator is authorized to provide, to the greatest
extent possible, arrangements for equitable sharing of such
assistance.
[(8) Such amounts as may be necessary for direct loans and
grants pursuant to this subsection shall be available as
provided in annual authorization Acts.
[(9) The Administrator, if appropriate, shall provide
assistance in the financing of up to 100 per centum of the
costs of the required community development and planning
pursuant to this subsection.
[(10) In carrying out the provisions of this subsection,
the Administrator shall provide that title to any facility
receiving financial assistance under this subsection shall vest
in the applicable State, political subdivision, or Indian
tribe, as appropriate, and in the case of default by the
borrower on a loan guarantee such facility shall not be
considered a project asset for the purposes of subsection (g)
of this section.
[(l)(1) The Administrator is directed to submit a report to
the Congress within one hundred and eighty days after the
enactment of this section setting forth his recommendations on
the best opportunities to implement a program of Federal
financial assistance with the objective of demonstrating
production and conservation of energy. Such report shall be
updated and submitted to Congress at least annually and shall
include specific comments and recommendations by the Secretary
of the Treasury on the methods and procedures set forth in
subparagraph (B)(viii) of this subsection, including their
adequacy, and changes necessary to satisfy the objectives
stated in this subsection. This report shall include--
[(A) a study of the purchase or commitment to
purchase by the Federal Government, for the use by the
United States, of all or a portion of the products of
any alternative fuel facilities constructed pursuant to
this program as a direct or an alternate form of
Federal assistance, which assistance, if recommended,
shall be carried out pursuant to section 7(a)(4) of
this Act; and
[(B) a comprehensive plan and program to acquire
information and evaluate the environmental, economic,
social, and technological impacts of the demonstration
program under this section. In preparing such a
comprehensive plan and program, the Administrator shall
consult with the Environmental Protection Agency, the
Federal Energy Administration, the Department of
Housing and Urban Development, the Department of the
Interior, the Department of Agriculture, and the
Department of the Treasury, and shall include therein,
but not be limited to, the following:
[(i) information about potential
demonstration facilities proposed in the
program under this section;
[(ii) any significant adverse impacts which
may result from any activity included in the
program;
[(iii) the extent to which it is feasible to
commercialize the technologies as they affect
different regions of the Nation;
[(iv) proposed regulations required to carry
out the purposes of this section;
[(v) a list of Federal agencies, governmental
entities, and other persons that will be
consulted or utilized to implement the program;
[(vi) the methods and procedures by which the
information gathered under the program will be
analyzed and disseminated;
[(vii) a plan for the study and monitoring of
the health effects of such facilities on
workers and other persons, including, but not
limited to, any carcinogenic effect of
alternative fuels; and
[(viii) the methods and procedures to insure
that (I) the use of the Federal assistance for
demonstration facilities is kept to the minimum
level necessary for the information objectives
of this section, (II) the impact of loan
guarantees on the capital markets of the United
States is minimized, taking into account other
Federal direct and indirect securities
activities, and any economic sectors which may
be negatively impacted as a result of the
reduction of capital by the placement of
guaranteed loans, and (III) the granting of
Federal loan guarantees under this Act does not
impede movement toward improvement in the
climate for attracting private capital to
develop alternative fuels without continued
direct Federal incentives.
[(2) The Administrator shall annually submit a detailed
report to the Congress concerning--
[(A) the actions taken or not taken by the
Administrator under this section during the preceding
fiscal year, and including, but not be limited to (i) a
discussion of the status of each demonstration facility
and related facilities financed under this section,
including progress made in the development of such
facilities, and the expected or actual production from
each such facility, including byproduct production
therefrom, and the distribution of such products and
byproducts, (ii) a detailed statement of the financial
conditions of each such demonstration facility, (iii)
data concerning the environmental, community, and
health and safety impacts of each such facility and the
actions taken or planned to prevent or mitigate such
impacts, (iv) the administrative and other costs
incurred by the Administrator and other Federal
agencies in carrying out this program, and (v) such
other data as may be helpful in keeping Congress and
the public fully and currently informed about the
program authorized by this section; and
[(B) the activities of the fund referred to
in subsection (n) of this section during the
preceding fiscal year, including a statement of
the amount and source of fees or other moneys,
property, or assets deposited into the funds,
all payments made, the notes or other
obligations issued by the Administrator, and
such other data as may be appropriate.
[(3) The annual reports required by this subsection shall
be a part of the annual report required by section 15 of this
Act, except that the matters required to be reported by this
subsection shall be clearly set out and identified in such
annual reports. Such reports and the one-hundred-and-eighty-day
report required in paragraph (1) of this subsection shall be
transmitted to the Speaker of the House of Representatives and
the House Committee on Science, Space, and Technology and to
the President of the Senate and the Committee on Energy and
Natural Resources of the Senate.
[(m) Prior to issuing any guarantee or commitment to
guarantee or cooperative agreement pursuant to subsection (b)
or subsection (y) of this section the Administrator shall
submit to the Committee on Science, Space, and Technology of
the House of Representatives and the Committee on Energy and
Natural Resources of the Senate a full and complete report on
the proposed demonstration facility and such guarantee,
agreement, or contract. Such guarantee, commitment to
guarantee, cooperative agreement, or contract shall not be
finalized under the authority granted by this section prior to
the expiration of ninety calendar days (not including any day
on which either House of Congress is not in session because of
an adjournment of more than three calendar days to a day
certain) from the date on which such report is received by such
committees: Provided, That, where the cost of a demonstration
facility to be assisted with a guarantee or cooperative
agreement pursuant to subsection (b) or subsection (y) of this
section exceeds $50,000,000 such guarantee or commitment to
guarantee or cooperative agreement shall not be finalized
unless (1) the making of such guarantee or commitment or
agreement is specificallyauthorized by legislation hereafter
enacted by the Congress or (2) both Houses pass a resolution stating in
substance that the Congress favors the making of such guarantee or
commitment or agreement.
[(n)(1) There is hereby created within the Treasury a
separate fund (hereafter in this section called the ``fund'')
which shall be available to the Administrator without fiscal
year limitation as a revolving fund for the purpose of carrying
out the program authorized by subsection (b)(1) and subsections
(g), (h), (k), and (y) of this section.
[(2) There are hereby authorized to be appropriated to the
fund for administrative expenses from time to time such amounts
as may be necessary to carry out the purposes of the applicable
provisions of this section, inclusding, but not limited to, the
payments of interest and principal and the payment of interest
differentials and redemption of debt. All amounts received by
the Administrator as interest payments or repayments of
principal on loans which are guaranteed under this section,
fees, and any other moneys, property, or assets derived by him
from operations under this section shall be deposited in the
fund.
[(3) All payments on obligations, appropriate expenses
(including reimbursements to other Government accounts), and
repayments pursuant to operations of the Administrator under
this section shall be paid from the fund subject to
appropriations. If at any time the Administrator determines
that moneys in the fund exceed the present and reasonably
foreseeable future requirements of the fund, such excess shall
be transferred to the general fund of the Treasury.
[(4) If at any time the moneys available in the fund are
insufficient to enable the Administrator to discharge his
responsibilities as authorized by subsections (b)(1), (g), (h),
and (y) of this section, the Administrator shall issue to the
Secretary of the Treasury notes or other obligations in such
forms and denominations, bearing such maturities, and subject
to such terms and conditions as may be prescribed by the
Secretary of the Treasury. Redemption of such notes or
obligations shall be made by the Administrator from
appropriations or other moneys available under paragraph (2) of
this subsection for loan guarantees authorized by subsection
(b)(1) and subsections (g), (h), (k), and (y) of this section.
Such notes or other obligations shall bear interest at a rate
determined by the Secretary of the Treasury, which shall be not
less than a rate determined by taking into consideration the
average market yield on outstanding marketable obligations of
the United States of comparable maturities during the month
preceding the issuance of the notes or other obligations. The
Secretary of the Treasury may at any time sell any of the notes
or other obligations acquired by him under this subsection.
[(5) The provisions of this subsection do not apply to
direct loans or planning grants made under subsection (k) of
this section.
[(o) For the purposes of this section, the term--
[(1) ``State'' means any State of the United States,
the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the Virgin Islands, American Samoa, any
territory or possession of the United States,
[(2) ``United States'' means the several States, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
and American Samoa,
[(3) ``borrower'' or ``applicant'' shall include any
individual, firm, corporation, company, partnership,
association, society, trust, joint venture, joint stock
company, or other non-Federal entity, and
[(4) ``biomass'' shall include, but is not limited
to, animal and timber waste, municipal and industrial
waste, sewage, sludge, and oceanic and terrestrial
crops.
[(p)(1) An applicant seeking a guarantee or cooperative
agreement under subsection (b) or subsection (y) of this
section must be a citizen or national of the United States. A
corporation, partnership, firm, or association shall not be
deemed to be a citizen or national of the United States unless
the Administrator determines that it satisfactorily meets all
the requirements of section 802 of title 46, United States Code
for determining such citizenship, except that the provisions in
subsection (a) of such section 802 concerning (A) the
citizenship of officers or directors of a corporation, and (B)
the interest required to be owned in the case of a corporation,
association, or partnership operating a vessel in the coastwise
trade, shall not be applicable.
[(2) The Administrator, in consultation with the Secretary
of State, may waive such requirements in the case of a
corporation, partnership, firm, or association, controlling
interest in which is owned by citizens of countries which are
participants in the International Energy Agreement.
[(q) No part of the program authorized by this section
shall be transferred to any other agency or authority, except
pursuant to Act of Congress enacted after the date of enactment
of this section.
[(r) Inventions made or conceived in the course of or under
a guarantee authorized by this section shall be subject to the
title and waiver requirements and conditions of section 9 of
this Act.
[(s) Nothing in this section shall be construed as
affecting the obligations of any person receiving financial
assistance pursuant to this section to comply with Federal and
State environmental, land use, water, and health and safety
laws and regulations or to obtain applicable Federal and State
permits, licenses, and certificates.
[(t) The information maintained by the Administrator under
this section shall be made available to the public subject to
the provision of section 552 of title 5, United States Code,
and section 1905 of title 18, United States Code, and to other
Government agencies in a manner that will facilitate its
dissemination: Provided, That upon a showing satisfactory to
the Administrator by any person that any information, or
portion thereof obtained under this section by the
Administrator directly or indirectly from such person would, if
made public, divulge (1) trade secrets or (2) other proprietary
information of such person, the Administrator shall not
disclose such information and disclosure thereof shall be
punishable under section 1905 of title 18, United States Code:
Provided further, That the Administrator shall, upon request,
provide such information to--
[(A) any delegate of the Administrator for the
purpose of carrying out this Act, and
[(B) the Attorney General, the Secretary of
Agriculture, the Secretary of the Interior, the Federal
Trade Commission, the Federal Energy Administration,
the Environmental Protection Agency, the Federal Power
Commission, the General Accounting Office, other
Federal agencies, or heads of other Federal agencies,
when necessary to carry out their duties and
responsibilities under this and other statutes, but
such agencies and agency heads shall not release such
information to the public. This section is not
authority to withhold information from Congress, or
from any committee of Congress upon request of the
Chairman. For the purposes of this subsection, the term
``person'' shall include the borrower.
[(u) Notwithstanding any other provision of this section,
the authority provided in this section to make guarantees or
commitments to guarantee or enter into cooperative agreements
under subsection (b)(1) or subsection (y), to make guarantees
or commitments to guarantees, or to make loans or grants, under
subsection (k), to make contracts under subsection (h), and to
use fees and receipts collected under subsections (b), (j), and
(y) of this section, and the authorities provided under
subsection (n) of this section shall be effective only to the
extent provided, without fiscal year limitation, in
appropriation Acts enacted after the date of enactment of this
section.
[(v) No person in the United States shall on the grounds of
race, color, religion, national origin, or sex, be excluded
from participation in, be denied benefits of, or be subjected
to discrimination under any program or activity funded in whole
or in part with assistance made available under this section:
Provided, That Indian tribes are exempt from the operation of
this subsection: Provided further, That such exemption shall be
limited to the planning and provision of public facilities
which are located on reservations and which are provided for
members of the affected Indian tribes as the primary
beneficiaries.
[(w) In carrying out his functions under this section, the
Administrator shall provide a realistic and adequate
opportunity for small business concerns to participate in the
program to the optimum extent feasible consistent with the size
and nature of each project.
[(x)(1) recipients of financial assistance under this
section shall keep such records and other pertinent documents,
as the Administrator shall prescribe by regulation, including,
but not limited to, records which fully disclose the
disposition of the proceeds of such assistance, the cost of any
facility, the total cost of the provision of public facilities
for which assistance was used and such other records as the
Administrator may require to facilitate an effective audit. The
Administrator and the Comptroller General of the United States,
or their duly authorized representative shall have access, for
the purpose of audit, to such records and other pertinent
documents.
[(2) All laborers and mechanics employed by contractors or
subcontractors in the performance of construction work financed
in whole or in part with assistance under this section shall be
paid wages at rates not less than those prevailing on similar
construction in the locality as determined by the Secretary of
Labor in accordance with the Davis-Bacon Act, as amended (40
U.S.C. 276a-276a-5). The Secretary of Labor shall have, with
respect to such labor standards, the authority and functions
set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R.
3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934,
as amended (48 Stat. 948; 40 U.S.C. 276(c)).
[(y)(1) The Administrator is authorized in accordance with
such rules and regulations as he shall prescribe after
consultation with the Secretary of the Treasury, to guarantee
and to make commitments to guarantee the payment of interest
on, and the principal balance of, bonds, debentures, notes, and
other obligations issued by or on behalf of any borrower for
the purpose of (A) financing the construction and startup costs
of demonstration facilities for the conversion of municipal or
industrial waste, sewage sludge, or other municipal organic
wastes into synthetic fuels, and (B) financing the construction
and startup costs of demonstration facilities to generate
desirable forms of energy (including synthetic fuels) from
municipal or industrial waste, sewage sludge, or other
municipal organic waste. With respect to a guarantee or a
commitment to guarantee authorized by this subsection; the
following subsections of this section shall not apply: (b)(1),
(b)(5), (c)(2), (c)(5), (c)(6), (c)(7), (c)(8), (c)(9), (e)(3),
(j), (k), and (q).
[(2) In the case where the Administrator seeks to guarantee
or to make commitments to guarantee as provided by this
subsection he is authorized to incur an outstanding
indebtedness which at no time shall exceed $300,000,000.
[(3) The Administrator shall apply the following provisions
thereto:
[(A) With respect to any demonstration facility for
the conversion of solid waste (as the term is defined
in the Resource Conservation and Recovery Act (42
U.S.C. 6903)), the Administrator, prior to issuing any
guarantee under this section, must be in receipt of a
certification from the Administrator of the
Environmental Protection Agency and any appropriate
State or areawide solid waste management planning
agency that the proposed application for a guarantee is
consistent with any applicable suggested guidelines
published pursuant to section 1008(a) of the Resource
Conservation and Recovery Act, and any applicable State
or regional solid waste management plan.
[(B) The amount guaranteed shall not exceed 75 per
centum of the total cost of the commercial
demonstration facility, as determined by the
Administrator: Provided, That the amount guaranteed may
not exceed 90 per centum of the total cost of the
commercial demonstration facility during the period of
construction and startup.
[(C) The maximum maturity of the obligation shall not
exceed thirty years, or 90 per centum of the projected
useful economic life of the physical assets of the
commercial demonstration facility covered by the
guarantee, whichever is less, as determined by the
Administrator.
[(D) The Administrator shall charge and collect fees
for guarantees of obligations in amounts sufficient in
the judgment of the Administrator to cover the
applicable administrative costs and probable losses on
guaranteed obligations, but in any event not to exceed
1 per centum per annum of the outstanding indebtedness
covered by the guarantee.
[(E) No part of the program authorized by this
section shall be transferred to any other agency or
authority, except pursuant to Act of Congress enacted
after the date of enactment of this section: Provided,
That project agreements entered into pursuant to this
section for any commercial demonstration facility for
the conversion of bioconversion of solid waste (as that
term is defined in the Resource Conservation and
Recovery Act) shall be administered in accordance with
the May 7, 1976, Interagency Agreement between the
Environmental Protection Agency and the Energy Research
and Development Administration on the Development of
Energy From Solid Wastes, and provided specifically
that in accordance with this agreement (i) for those
energy-related projects of mutual interest, planning
will be conducted jointly by the Environmental
Protection Agency and the Energy Research and
Development Administration, following which project
responsibility will be assigned to one agency; (ii)
energy-related projects for recovery of synthetic fuels
or other forms of energy from solid waste shall be the
responsibility of the Energy Research and Development
Administration; and (iii) the Environmental Protection
Agency shall retain responsibility for the
environmental, economic, and institutional aspects of
solid waste projects and for assurance that such
projects are consistent with any applicable suggested
guidelines pursuant to section 1008 of the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. 6901
et seq.), as amended, and any applicable State or
regional solid waste management plan.
[(F) With respect to any obligation which is issued
after the enactment of this section by, or in behalf
of, any State, political subdivision, or Indian tribe
and which is either guaranteed under, or supported by
taxes levied by said issuer which are guaranteed under,
this section, the interest paid on such obligation and
received by the purchaser thereof (or the purchaser's
successor in interest) shall be included in gross
income for the purpose of chapter 1 of the Internal
Revenue Code of 1954, as amended: Provided, That the
Administrator shall pay to such issuer out of the fund
established by this section such portion of the
interest on such obligations, as determined by the
Secretary of the Treasury to be appropriated after
taking into account current market yields (i) on
obligations of said issuer, if any, and (ii) on other
obligations with similar terms and conditions the
interest on which is not so included in gross income
for purposes of chapter 1 of such Code, and in
accordance with, such terms and conditions as the
Secretary of the Treasury shall require.
[FINANCIAL SUPPORT PROGRAM FOR MUNICIPAL WASTE REPROCESSING
DEMONSTRATION FACILITIES
[Sec. 20. (a) It is the purpose of this section--
[(1) to assure adequate Federal support to foster a
program to demonstrate municipal waste reprocessing for
the production of fuel and energy intensive products;
and
[(2) to gather information about the technological,
economic, environmental, and social costs, benefits,
and impacts of such demonstration facilities.
[(b)(1) The Administrator is authorized and directed, to
the extent provided in appropriation Acts, to establish such a
demonstration program by making grants, contracts, price
supports, and cooperative agreements pursuant to this Act or
any combination thereof for the establishment of municipal
waste reprocessing demonstration facilities. For the purpose of
this section municipal waste shall include but not be limited
to municipal solid waste, sewage sludge, and other municipal
organic wastes.
[(2) The aggregate amount of funds available for grants,
contracts, price supports, and cooperative agreements for
municipal waste reprocessing demonstration facilities shall not
exceed $20,000,000 in the fiscal year ending September 30,
1978.
[(3) For purposes of this section the term ``municipal''
shall include any city, town, borough, county, parish,
district, or other public body created by or pursuant to State
law.
[(4) Municipal was reprocessing demonstration facilities
established under this section shall be owned or operated (or
both owned and operated) by the municipality and shall involve
the recovery of energy or energy intensive products. Such
facilities may be established by any public or private entity,
by contract or otherwise, as may be determined by the local
government which will own or operate (or both own and operate)
such facilities and to which financial support is provided. The
Federal share for any such facility to which this section
applies shall not exceed 75 per centum of the cost of such
facility, and not more than $40,000,000 in Federal funds under
this section may be used for the construction of any one
facility.
[(5) The Administrator shall promulgate such regulations as
he deems necessary, pursuant to section 7(a)(4) and section
7(c) (1) and (6) of this Act, for purposes of establishing a
price support program for revenue producing products of
municipal waste reprocessing demonstration facilities.
[(c)(1) The Administrator shall consult with the
Environmental Protection Agency to assure that the provisions
of section 8004 of the Resource Conservation and Recovery Act
of 1976 (Public Law 94-580) are applied in carrying out this
section.
[(2) Any energy-related research, development, or
demonstration project for the conversion (including
bioconversion) of municipal waste carried out by the Energy
Research and Development Administration pursuant to this or any
other Act shall be administered in accordance with the May 7,
1976, Interagency Agreement between the Environmental
Protection Agency and the Energy Research and Development
Administration on the development of energy from solid wastes;
and specifically, in accordance with such
Agreement (A) for those energy-related projects of mutual
interest, planning will be conducted jointly by the
Environmental Protection Agency and the Energy Research and
Development Administration, following which project
responsibility will be assigned to one agency; (B) energy-
related aspects of projects for recovery of fuels or energy
intensive products from municipal waste as defined in this
section shall be the responsibility of the Energy Research and
Development Administration including energy-related economic
and institutional aspects; and (C) the Environmental Protection
Agency shall retain responsibility for the environmental and
other economic and institutional aspects of solid waste
projects and for assurance that such projects are consistent
with any applicable suggested guidelines published pursuant to
section 1008 of the Resource Conservation and Recovery Act of
1976 (Public Law 94-580), and any applicable State or regional
waste management plan.
[(d)(1) The Administrator shall establish such guidelines
as he deems necessary for purposes of obtaining pertinent
information from municipalities receiving funding under this
section. These guidelines shall include but not be limited to
methods of assessment and evaluation of projects authorized
under this section. Such assessments and evaluations shall be
presented by the Administrator to the House Committee on
Science, Space, and Technology and the Senate Committee on
Energy and Natural Resources upon the request of either such
committee.
[(2) The Administrator shall annually submit a report to
the Congress concerning the actions taken or not taken by the
Administrator under this section during the preceding fiscal
year, and including but not limited to:
[(A) a discussion of the status of each demonstration
facility and related facilities financed under this
section, including progress made in the development of
such facilities, and the expected or actual production
from each such facility including byproduct production
therefrom, and the distribution of such products and
byproducts,
[(B) a statement of the financial condition of each
such demonstration facility,
[(C) data concerning the environmental, community,
and health and safety impacts of each such facility and
the actions taken or planned to prevent or mitigate
such impacts,
(D) the administrative and other costs incurred by
the Administrator and other Federal agencies in
carrying out this program, and (E) such other data as
may be helpful in keeping Congress and the public fully
and currently informed about the program authorized by
this section.
[(3) The annual reports required by this subsection shall
be a part of the annual report required by section 15 of this
Act, except that the matters required to be reported by this
subsection shall be clearly set out and identified in such
annual reports. Such reports shall be transmitted to the
Speaker of the House of Representatives and the House Committee
on Science, Space, and Technology and to the President of the
Senate and the Senate Committee on Energy and Natural
Resources.
[(e) No part of the program authorized by this section
shall be transferred to any other agency or authority, except
pursuant to Act of Congress enacted after the date of the
enactment of this section.
[(f) Nothing in this section shall be construed as
abrogating any obligations of any municipality receiving
financial assistance pursuant to this section to comply with
Federal and State environmental, land use, water, and health
and safety laws and regulations or to obtain applicable Federal
and State permits, licenses, and certificates.
----------
STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980--PL 96-480 AS
AMENDED (15 U.S.C. 3712)
* * * * * * *
SEC. 20. PERSONNEL EXCHANGES.
The Secretary, the Secretary of Energy, and the Director of
the National Science Foundation, [and the National Science
Foundation] jointly, shall establish a program to foster the
exchange of scientific and technical personnel among academia,
industry, and Federal laboratories. Such program shall include
both (1) federally supported exchanges and (2) efforts to
stimulate exchanges without Federal funding.
----------
AGRICULTURAL RISK PROTECTION ACT OF 2000--PUBLIC LAW 106-224, AS
AMENDED
* * * * * * *
TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000
* * * * * * *
[SEC. 311. 7 U.S.C. 7624 TERMINATION OF AUTHORITY.
[The authority provided under this title shall terminate on
September 30, 2007.]
----------
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935--ACT OF AUGUST 26, 1935,
CHAPTER 687, AS AMENDED (15 U.S.C. 79-79Z-6)
[PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
[AN ACT To provide for control and regulation of public-utility holding
companies, and for other purposes
[Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That
this Act may be cited as the ``Public Utility Act of 1935.''
[TITLE I--CONTROL OF PUBLIC-UTILITY HOLDING COMPANIES
[NECESSITY FOR CONTROL OF HOLDING COMPANIES
[Section 1. (a) Public-utility holding companies and their
subsidiary companies are affected with a national public
interest in that, among other things, (1) their securities are
widely marketed and distributed by means of the mails and
instrumentalities of interstate commerce and are sold to a
large number of investors in different States; (2) their
service, sales, construction, and other contracts and
arrangements are often made and performed by means of the mails
and instrumentalities of interstate commerce; (3) their
subsidiary public-utility companies often sell and transport
gas and electric energy by the use of means and
instrumentalities of interstate commerce; (4) their practices
in respect of and control over subsidiary companies often
materially affect the interstate commerce in which those
companies engage; (5) their activities extending over many
States are not susceptible of effective control by any State
and make difficult, if not impossible, effective State
regulation of public-utility companies.
[(b) Upon the basis of facts disclosed by the reports of
the Federal Trade Commission made pursuant to S. Res. 83
(Seventieth Congress, first session), the reports of the
Committee on Interstate and Foreign Commerce, House of
Representatives, made pursuant to H. Res. 59 (Seventy-second
Congress, first session) and H.J. Res. 572 (Seventy-second
Congress, second session) and otherwise disclosed and
ascertained, it is hereby declared that the national public
interest, the interest of investors in the securities of
holding companies and their subsidiary companies and
affiliates, and the interest of consumers of electric energy
and natural and manufactured gas, are or may be adversely
affected--
[(1) when such investors cannot obtain the
information necessary to appraise the financial
position or earning power of the issuers, because of
the absence of uniform standard accounts; when such
securities are issued without the approval or consent
