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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