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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
