HR 4 EAS
In the Senate of the United States,
April 25, 2002.
Resolved, That the bill from the House of Representatives (H.R. 4)
entitled `An Act to enhance energy conservation, research and development and to
provide for security and diversity in the energy supply for the American people,
and for other purposes.', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the `Energy Policy Act of 2002'.
SEC. 2. TABLE OF CONTENTS.
Sec. 2. Table of contents.
DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND
TRANSMISSION
TITLE I--REGIONAL COORDINATION
Sec. 101. Policy on regional coordination.
Sec. 102. Federal support for regional coordination.
TITLE II--ELECTRICITY
Subtitle A--Amendments to the Federal Power Act
Sec. 202. Electric utility mergers.
Sec. 203. Market-based rates.
Sec. 204. Refund effective date.
Sec. 205. Open access transmission by certain utilities.
Sec. 206. Electric reliability standards.
Sec. 207. Market transparency rules.
Sec. 208. Access to transmission by intermittent
generators.
Sec. 210. Electric power transmission systems.
Subtitle B--Amendments to the Public Utility Holding Company
Act
Sec. 223. Repeal of the Public Utility Holding Company Act of
1935.
Sec. 224. Federal access to books and records.
Sec. 225. State access to books and records.
Sec. 226. Exemption authority.
Sec. 227. Affiliate transactions.
Sec. 229. Effect on other regulations.
Sec. 231. Savings provisions.
Sec. 232. Implementation.
Sec. 233. Transfer of resources.
Sec. 234. Inter-agency review of competition in the wholesale and
retail markets for electric energy.
Sec. 235. GAO study on implementation.
Sec. 236. Effective date.
Sec. 237. Authorization of appropriations.
Sec. 238. Conforming amendments to the Federal Power Act.
Subtitle C--Amendments to the Public Utility Regulatory Policies Act of
1978
Sec. 241. Real-time pricing and time-of-use metering
standards.
Sec. 242. Adoption of additional standards.
Sec. 243. Technical assistance.
Sec. 244. Cogeneration and small power production purchase and sale
requirements.
Subtitle D--Consumer Protections
Sec. 251. Information disclosure.
Sec. 252. Consumer privacy.
Sec. 253. Office of Consumer Advocacy.
Sec. 254. Unfair trade practices.
Sec. 255. Applicable procedures.
Sec. 256. Federal Trade Commission enforcement.
Sec. 257. State authority.
Sec. 258. Application of subtitle.
Subtitle E--Renewable Energy and Rural Construction Grants
Sec. 261. Renewable energy production incentive.
Sec. 262. Assessment of renewable energy resources.
Sec. 263. Federal purchase requirement.
Sec. 264. Renewable portfolio standard.
Sec. 265. Renewable energy on Federal land.
Subtitle F--General Provisions
Sec. 271. Change 3 cents to 1.5 cents.
Sec. 272. Bonneville Power Administration bonds.
TITLE III--HYDROELECTRIC RELICENSING
Sec. 301. Alternative conditions and fishways.
TITLE IV--INDIAN ENERGY
Sec. 401. Comprehensive Indian energy program.
Sec. 402. Office of Indian Energy Policy and Programs.
Sec. 403. Conforming amendments.
Sec. 404. Siting energy facilities on tribal lands.
Sec. 405. Indian Mineral Development Act review.
Sec. 406. Renewable energy study.
Sec. 407. Federal Power Marketing Administrations.
Sec. 408. Feasibility study of combined wind and hydropower
demonstration project.
TITLE V--NUCLEAR POWER
Subtitle A--Price-Anderson Act Reauthorization
Sec. 502. Extension of indemnification authority.
Sec. 503. Department of Energy liability limit.
Sec. 504. Incidents outside the United States.
Sec. 506. Inflation adjustment.
Sec. 507. Civil penalties.
Sec. 508. Treatment of modular reactors.
Sec. 509. Effective date.
Subtitle B--Miscellaneous Provisions
Sec. 512. Reauthorization of thorium reimbursement.
Sec. 513. Fast Flux Test Facility.
Sec. 514. Nuclear Power 2010.
Sec. 515. Office of Spent Nuclear Fuel Research.
Sec. 516. Decommissioning pilot program.
Subtitle C--Growth of Nuclear Energy
Sec. 521. Combined license periods.
Subtitle D--NRC Regulatory Reform
Sec. 531. Antitrust review.
Sec. 532. Decommissioning.
Subtitle E--NRC Personnel Crisis
Sec. 541. Elimination of pension offset.
Sec. 542. NRC training program.
DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION
TITLE VI--OIL AND GAS PRODUCTION
Sec. 601. Permanent authority to operate the Strategic Petroleum
Reserve.
Sec. 602. Federal onshore leasing programs for oil and
gas.
Sec. 603. Oil and gas lease acreage limitations.
Sec. 604. Orphaned and abandoned wells on Federal land.
Sec. 605. Orphaned and abandoned oil and gas well
program.
Sec. 606. Offshore development.
Sec. 607. Coalbed methane study.
Sec. 608. Fiscal policies to maximize recovery of domestic oil and
gas resources.
Sec. 609. Strategic Petroleum Reserve.
Sec. 610. Hydraulic fracturing.
Sec. 611. Authorization of appropriations.
Sec. 612. Preservation of oil and gas resource data.
Sec. 613. Resolution of Federal resource development conflicts in
the Powder River Basin.
TITLE VII--NATURAL GAS PIPELINES
Subtitle A--Alaska Natural Gas Pipeline
Sec. 704. Issuance of certificate of public convenience and
necessity.
Sec. 705. Environmental reviews.
Sec. 706. Pipeline expansion.
Sec. 707. Federal Coordinator.
Sec. 708. Judicial review.
Sec. 709. State jurisdiction over in-State delivery of natural
gas.
Sec. 710. Loan guarantee.
Sec. 711. Study of alternative means of construction.
Sec. 712. Clarification of ANGTA status and authorities.
Sec. 714. Sense of the Senate.
Sec. 715. Alaskan pipeline construction training program.
Subtitle B--Operating Pipelines
Sec. 721. Environmental review and permitting of natural gas
pipeline projects.
Subtitle C--Pipeline Safety
Part I--Short Title; Amendment of Title 49
Sec. 741. Short title; amendment of title 49, United States
Code.
Part II--Pipeline Safety Improvement Act of 2002
Sec. 761. Implementation of Inspector General
recommendations.
Sec. 762. NTSB safety recommendations.
Sec. 763. Qualifications of pipeline personnel.
Sec. 764. Pipeline integrity inspection program.
Sec. 766. Public education, emergency preparedness, and community
right-to-know.
Sec. 768. State oversight role.
Sec. 769. Improved data and data availability.
Sec. 770. Research and development.
Sec. 771. Pipeline integrity technical advisory
committee.
Sec. 772. Authorization of appropriations.
Sec. 773. Operator assistance in investigations.
Sec. 774. Protection of employees providing pipeline safety
information.
Sec. 775. State pipeline safety advisory committees.
Sec. 776. Fines and penalties.
Sec. 777. Study of rights-of-way.
Sec. 778. Study of natural gas reserve.
Sec. 779. Study and report on natural gas pipeline and storage
facilities in New England.
Part III--Pipeline Security Sensitive Information
Sec. 781. Meeting community right-to-know without security
risks.
Sec. 782. Technical assistance for security of pipeline
facilities.
Sec. 783. Criminal penalties for damaging or destroying a
facility.
DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING
EFFICIENCY
TITLE VIII--FUELS AND VEHICLES
Subtitle A--CAFE Standards, Alternative Fuels, and Advanced
Technology
Sec. 801. Increased fuel economy standards.
Sec. 802. Expedited procedures for congressional increase in fuel
economy standards.
Sec. 803. Revised considerations for decisions on maximum feasible
average fuel economy.
Sec. 804. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 805. Procurement of alternative fueled and hybrid light duty
trucks.
Sec. 806. Use of alternative fuels.
Sec. 807. Hybrid electric and fuel cell vehicles.
Sec. 808. Diesel fueled vehicles.
Sec. 809. Fuel cell demonstration.
Sec. 810. Bus replacement.
Sec. 811. Average fuel economy standards for pickup
trucks.
Sec. 812. Exception to HOV passenger requirements for alternative
fuel vehicles.
Sec. 813. Data collection.
Sec. 814. Green school bus pilot program.
Sec. 815. Fuel cell bus development and demonstration
program.
Sec. 816. Authorization of appropriations.
Sec. 817. Temporary biodiesel credit expansion.
Sec. 818. Neighborhood electric vehicles.
Sec. 819. Credit for hybrid vehicles, dedicated alternative fuel
vehicles, and infrastructure.
Sec. 820. Renewable content of motor vehicle fuel.
Sec. 820A. Federal agency ethanol-blended gasoline and biodiesel
purchasing requirement.
Sec. 820B. Commercial byproducts from municipal solid waste loan
guarantee program.
Subtitle B--Additional Fuel Efficiency Measures
Sec. 821. Fuel efficiency of the Federal fleet of
automobiles.
Sec. 822. Idling reduction systems in heavy duty
vehicles.
Sec. 823. Conserve By Bicycling program.
Sec. 824. Fuel cell vehicle program.
Subtitle C--Federal Reformulated Fuels
Sec. 832. Leaking underground storage tanks.
Sec. 833. Authority for water quality protection from
fuels.
Sec. 834. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 835. Public health and environmental impacts of fuels and fuel
additives.
Sec. 836. Analyses of motor vehicle fuel changes.
Sec. 837. Additional opt-in areas under reformulated gasoline
program.
Sec. 838. Federal enforcement of State fuels
requirements.
Sec. 839. Fuel system requirements harmonization study.
Sec. 840. Review of Federal procurement initiatives relating to use
of recycled products and fleet and transportation efficiency.
TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME
CONSUMERS
Subtitle A--Low Income Assistance and State Energy Programs
Sec. 901. Increased funding for LIHEAP, weatherization assistance,
and State energy grants.
Sec. 902. State energy programs.
Sec. 903. Energy efficient schools.
Sec. 904. Low income community energy efficiency pilot
program.
Sec. 905. Energy efficient appliance rebate programs.
Subtitle B--Federal Energy Efficiency
Sec. 911. Energy management requirements.
Sec. 912. Energy use measurement and accountability.
Sec. 913. Federal building performance standards.
Sec. 914. Procurement of energy efficient products.
Sec. 915. Repeal of energy savings performance contract
sunset.
Sec. 916. Energy savings performance contract
definitions.
Sec. 917. Review of energy savings performance contract
program.
Sec. 918. Federal Energy Bank.
Sec. 919. Energy and water saving measures in congressional
buildings.
Sec. 920. Increased use of recovered material in federally funded
projects involving procurement of cement or concrete.
Subtitle C--Industrial Efficiency and Consumer Products
Sec. 921. Voluntary commitments to reduce industrial energy
intensity.
Sec. 922. Authority to set standards for commercial
products.
Sec. 923. Additional definitions.
Sec. 924. Additional test procedures.
Sec. 925. Energy labeling.
Sec. 926. Energy Star Program.
Sec. 927. Energy conservation standards for central air-conditioners
and heat pumps.
Sec. 928. Energy conservation standards for additional consumer and
commercial products.
Sec. 929. Consumer education on energy efficiency benefits of
air-conditioning, heating, and ventilation maintenance.
Sec. 930. Study of energy efficiency standards.
Subtitle D--Housing Efficiency
Sec. 931. Capacity building for energy efficient, affordable
housing.
Sec. 932. Increase of CDBG public services cap for energy
conservation and efficiency activities.
Sec. 933. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 934. Public housing capital fund.
Sec. 935. Grants for energy-conserving improvements for assisted
housing.
Sec. 936. North American Development Bank.
Sec. 938. Energy-efficient appliances.
Sec. 939. Energy efficiency standards.
Sec. 940. Energy strategy for HUD.
Subtitle E--Rural and Remote Communities
Sec. 942. Findings and purpose.
Sec. 944. Authorization of appropriations.
Sec. 945. Statement of activities and review.
Sec. 946. Eligible activities.
Sec. 947. Allocation and distribution of funds.
Sec. 948. Rural and remote community electrification
grants.
Sec. 949. Additional authorization of appropriations.
Sec. 950. Rural recovery community development block
grants.
DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE
POLICY
TITLE X--NATIONAL CLIMATE CHANGE POLICY
Subtitle A--Sense of Congress
Sec. 1001. Sense of Congress on climate change.
Subtitle B--Climate Change Strategy
Sec. 1013. National climate change strategy.
Sec. 1014. Office of National Climate Change Policy.
Sec. 1015. Office of Climate Change Technology.
Sec. 1016. Additional offices and activities.
Subtitle C--Science and Technology Policy
Sec. 1021. Global climate change in the Office of Science and
Technology Policy.
Sec. 1022. Director of Office of Science and Technology Policy
Functions.
Subtitle D--Miscellaneous Provisions
Sec. 1031. Additional information for regulatory review.
Sec. 1032. Greenhouse gas emissions from Federal
facilities.
TITLE XI--NATIONAL GREENHOUSE GAS DATABASE
Sec. 1103. Establishment of memorandum of agreement.
Sec. 1104. National Greenhouse Gas Database.
Sec. 1105. Greenhouse gas reduction reporting.
Sec. 1106. Measurement and verification.
Sec. 1107. Independent reviews.
Sec. 1108. Review of participation.
Sec. 1110. Report on statutory changes and harmonization.
Sec. 1111. Authorization of appropriations.
DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING
TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS
Sec. 1204. Construction with other laws.
Subtitle A--Energy Efficiency
Sec. 1211. Enhanced energy efficiency research and
development.
Sec. 1212. Energy efficiency science initiative.
Sec. 1213. Next generation lighting initiative.
Sec. 1214. Railroad efficiency.
Sec. 1215. High power density industry program.
Sec. 1216. Research regarding precious metal catalysis.
Subtitle B--Renewable Energy
Sec. 1221. Enhanced renewable energy research and
development.
Sec. 1222. Bioenergy programs.
Sec. 1223. Hydrogen research and development.
Subtitle C--Fossil Energy
Sec. 1231. Enhanced fossil energy research and
development.
Sec. 1232. Power plant improvement initiative.
Sec. 1233. Research and development for advanced safe and efficient
coal mining technologies.
Sec. 1234. Ultra-deepwater and unconventional resource exploration
and production technologies.
Sec. 1235. Research and development for new natural gas
transportation technologies.
Sec. 1236. Authorization of appropriations for Office of Arctic
Energy.
Sec. 1237. Clean coal technology loan.
Subtitle D--Nuclear Energy
Sec. 1241. Enhanced nuclear energy research and
development.
Sec. 1242. University nuclear science and engineering
support.
Sec. 1243. Nuclear energy research initiative.
Sec. 1244. Nuclear energy plant optimization program.
Sec. 1245. Nuclear energy technology development program.
Subtitle E--Fundamental Energy Science
Sec. 1251. Enhanced programs in fundamental energy
science.
Sec. 1252. Nanoscale science and engineering research.
Sec. 1253. Advanced scientific computing for energy
missions.
Sec. 1254. Fusion energy sciences program and planning.
Subtitle F--Energy, Safety, and Environmental Protection
Sec. 1261. Critical energy infrastructure protection research and
development.
Sec. 1262. Research and demonstration for remediation of groundwater
from energy activities.--
TITLE XIII--CLIMATE CHANGE SCIENCE AND TECHNOLOGY
Subtitle A--Department of Energy Programs
Sec. 1301. Department of Energy global change research.
Sec. 1302. Amendments to the Federal Nonnuclear Research and
Development Act of 1974.
Subtitle B--Department of Agriculture Programs
Sec. 1311. Carbon sequestration basic and applied
research.
Sec. 1312. Carbon sequestration demonstration projects and
outreach.
Sec. 1313. Carbon storage and sequestration accounting
research.
Subtitle C--International Energy Technology Transfer
Sec. 1321. Clean energy technology exports program.
Sec. 1322. International energy technology deployment
program.
Subtitle D--Climate Change Science and Information
Part I--Amendments to the Global Change Research Act of 1990
Sec. 1331. Amendment of Global Change Research Act of
1990.
Sec. 1332. Changes in definitions.
Sec. 1333. Change in committee name and structure.
Sec. 1334. Change in national global change research
plan.
Sec. 1335. Integrated Program Office.
Sec. 1336. Research grants.
Sec. 1337. Evaluation of information.
Part II--National Climate Services and Monitoring
Sec. 1341. Amendment of National Climate Program Act.
Sec. 1342. Changes in findings.
Sec. 1343. Tools for regional planning.
Sec. 1344. Authorization of appropriations.
Sec. 1345. National Climate Service Plan.
Sec. 1346. International Pacific research and
cooperation.
Sec. 1347. Reporting on trends.
Sec. 1348. Arctic research and policy.
Sec. 1349. Abrupt climate change research.
Part III--Ocean and Coastal Observing System
Sec. 1351. Ocean and coastal observing system.
Sec. 1352. Authorization of appropriations.
Subtitle E--Climate Change Technology
Sec. 1361. NIST greenhouse gas functions.
Sec. 1362. Development of new measurement technologies.
Sec. 1363. Enhanced environmental measurements and
standards.
Sec. 1364. Technology development and diffusion.
Sec. 1365. Authorization of appropriations.
Subtitle F--Climate Adaptation and Hazards Prevention
Part I--Assessment and Adaptation
Sec. 1371. Regional climate assessment and adaptation
program.
Sec. 1372. Coastal vulnerability and adaptation.
Sec. 1373. Arctic research center.
Part II--Forecasting and Planning Pilot Programs
Sec. 1381. Remote sensing pilot projects.
Sec. 1382. Database establishment.
Sec. 1383. Air quality research, forecasts and warnings.
Sec. 1385. Authorization of appropriations.
TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS
Sec. 1402. Availability of funds.
Sec. 1404. Merit review of proposals.
Sec. 1405. External technical review of departmental
programs.
Sec. 1406. Improved coordination and management of civilian science
and technology programs.
Sec. 1407. Improved coordination of technology transfer
activities.
Sec. 1408. Technology infrastructure program.
Sec. 1409. Small business advocacy and assistance.
Sec. 1410. Other transactions.
Sec. 1411. Mobility of scientific and technical
personnel.
Sec. 1412. National Academy of Sciences report.
Sec. 1413. Report on technology readiness and barriers to technology
transfer.
Sec. 1414. United States-Mexico energy technology
cooperation.
TITLE XV--PERSONNEL AND TRAINING
Sec. 1501. Workforce trends and traineeship grants.
Sec. 1502. Postdoctoral and senior research fellowships in energy
research.
Sec. 1503. Training guidelines for electric energy industry
personnel.
Sec. 1504. National Center on Energy Management and Building
Technologies.
Sec. 1505. Improved access to energy-related scientific and
technical careers.
Sec. 1506. National power plant operations technology and education
center.
Sec. 1507. Federal mine inspectors.
DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES
TITLE XVI--TECHNOLOGY ASSESSMENT
Sec. 1601. National Science and Technology Assessment
Service.
TITLE XVII--STUDIES
Sec. 1701. Regulatory reviews.
Sec. 1702. Assessment of dependence of State of Hawaii on
oil.
Sec. 1703. Study of siting an electric transmission system on Amtrak
right-of-way.
Sec. 1704. Updating of insular area renewable energy and energy
efficiency plans.
Sec. 1705. Consumer Energy Commission.
Sec. 1706. Study of natural gas and other energy transmission
infrastructure across the great lakes.
Sec. 1707. National Academy of Sciences study of procedures for
selection and assessment of certain routes for shipment of spent nuclear
fuel from research nuclear reactors.
Sec. 1708. Report on energy savings and water use.
Sec. 1709. Report on research on hydrogen production and
use.
DIVISION G--ENERGY INFRASTRUCTURE SECURITY
TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE
Subtitle A--Department of Energy Programs
Sec. 1802. Role of the Department of Energy.
Sec. 1803. Critical energy infrastructure programs.
Sec. 1804. Advisory Committee on Energy Infrastructure
Security.
Sec. 1805. Best practices and standards for energy infrastructure
security.
Subtitle B--Department of the Interior Programs
Sec. 1811. Outer Continental Shelf energy infrastructure
security.
DIVISION H--ENERGY TAX INCENTIVES
Sec. 1900. Short title; etc.
TITLE XIX--EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY
PRODUCTION TAX CREDIT
Sec. 1901. Three-year extension of credit for producing electricity
from wind and poultry waste.
Sec. 1902. Credit for electricity produced from biomass.
Sec. 1903. Credit for electricity produced from swine and bovine
waste nutrients, geothermal energy, and solar energy.
Sec. 1904. Treatment of persons not able to use entire
credit.
Sec. 1905. Credit for electricity produced from small irrigation
power.
Sec. 1906. Credit for electricity produced from municipal biosolids
and recycled sludge.
TITLE XX--ALTERNATIVE MOTOR VEHICLES AND FUELS INCENTIVES
Sec. 2001. Alternative motor vehicle credit.
Sec. 2002. Modification of credit for qualified electric
vehicles.
Sec. 2003. Credit for installation of alternative fueling
stations.
Sec. 2004. Credit for retail sale of alternative fuels as motor
vehicle fuel.
Sec. 2005. Small ethanol producer credit.
Sec. 2006. All alcohol fuels taxes transferred to Highway Trust
Fund.
Sec. 2007. Increased flexibility in alcohol fuels tax
credit.
Sec. 2008. Incentives for biodiesel.
Sec. 2009. Credit for taxpayers owning commercial power takeoff
vehicles.
Sec. 2010. Modifications to the incentives for alternative vehicles
and fuels.
TITLE XXI--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS
Sec. 2101. Credit for construction of new energy efficient
home.
Sec. 2102. Credit for energy efficient appliances.
Sec. 2103. Credit for residential energy efficient
property.
Sec. 2104. Credit for business installation of qualified fuel cells
and stationary microturbine power plants.
Sec. 2105. Energy efficient commercial buildings
deduction.
Sec. 2106. Allowance of deduction for qualified new or retrofitted
energy management devices.
Sec. 2107. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 2108. Energy credit for combined heat and power system
property.
Sec. 2109. Credit for energy efficiency improvements to existing
homes.
Sec. 2110. Allowance of deduction for qualified new or retrofitted
water submetering devices.
Sec. 2111. Three-year applicable recovery period for depreciation of
qualified water submetering devices.
TITLE XXII--CLEAN COAL INCENTIVES
Subtitle A--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-based Electricity Generation Facilities
Sec. 2201. Credit for production from a qualifying clean coal
technology unit.
Subtitle B--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
Sec. 2211. Credit for investment in qualifying advanced clean coal
technology.
Sec. 2212. Credit for production from a qualifying advanced clean
coal technology unit.
Subtitle C--Treatment of Persons Not Able To Use Entire Credit
Sec. 2221. Treatment of persons not able to use entire
credit.
TITLE XXIII--OIL AND GAS PROVISIONS
Sec. 2301. Oil and gas from marginal wells.
Sec. 2302. Natural gas gathering lines treated as 7-year
property.
Sec. 2303. Expensing of capital costs incurred in complying with
environmental protection agency sulfur regulations.
Sec. 2304. Environmental tax credit.
Sec. 2305. Determination of small refiner exception to oil depletion
deduction.
Sec. 2306. Marginal production income limit extension.
Sec. 2307. Amortization of geological and geophysical
expenditures.
Sec. 2308. Amortization of delay rental payments.
Sec. 2309. Study of coal bed methane.
Sec. 2310. Extension and modification of credit for producing fuel
from a nonconventional source.
Sec. 2311. Natural gas distribution lines treated as 15-year
property.
TITLE XXIV--ELECTRIC UTILITY RESTRUCTURING PROVISIONS
Sec. 2401. Ongoing study and reports regarding tax issues resulting
from future restructuring decisions.
Sec. 2402. Modifications to special rules for nuclear
decommissioning costs.
Sec. 2403. Treatment of certain income of cooperatives.
Sec. 2404. Sales or dispositions to implement Federal Energy
Regulatory Commission or State electric restructuring policy.
Sec. 2405. Application of temporary regulations to certain output
contracts.
Sec. 2406. Treatment of certain development income of
cooperatives.
TITLE XXV--ADDITIONAL PROVISIONS
Sec. 2501. Extension of accelerated depreciation and wage credit
benefits on Indian reservations.
Sec. 2502. Study of effectiveness of certain provisions by
GAO.
Sec. 2503. Credit for production of Alaska natural gas.
Sec. 2504. Sale of gasoline and diesel fuel at duty-free sales
enterprises.
Sec. 2505. Treatment of dairy property.
Sec. 2506. Clarification of excise tax exemptions for agricultural
aerial applicators.
Sec. 2507. Modification of rural airport definition.
Sec. 2508. Exemption from ticket taxes for transportation provided
by seaplanes.
DIVISION I--IRAQ OIL IMPORT RESTRICTION
TITLE XXVI--IRAQ OIL IMPORT RESTRICTION
Sec. 2601. Short title and findings.
Sec. 2602. Prohibition on Iraqi-origin petroleum imports.
Sec. 2603. Termination/Presidential certification.
Sec. 2604. Humanitarian interests.
Sec. 2606. Effective date.
DIVISION J--MISCELLANEOUS
TITLE XXVII--MISCELLANEOUS PROVISION
Sec. 2701. Fair treatment of Presidential judicial
nominees.
DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND
TRANSMISSION
TITLE I--REGIONAL COORDINATION
SEC. 101. POLICY ON REGIONAL COORDINATION.
(a) STATEMENT OF POLICY- It is the policy of the Federal Government to
encourage States to coordinate, on a regional basis, State energy policies to
provide reliable and affordable energy services to the public while minimizing
the impact of providing energy services on communities and the
environment.
(b) DEFINITION OF ENERGY SERVICES- For purposes of this section, the
term `energy services' means--
(1) the generation or transmission of electric energy,
(2) the transportation, storage, and distribution of crude oil,
residual fuel oil, refined petroleum product, or natural gas, or
(3) the reduction in load through increased efficiency,
conservation, or load control measures.
SEC. 102. FEDERAL SUPPORT FOR REGIONAL COORDINATION.
(a) TECHNICAL ASSISTANCE- The Secretary of Energy shall provide
technical assistance to States and regional organizations formed by two or
more States to assist them in coordinating their energy policies on a regional
basis. Such technical assistance may include assistance in--
(1) identifying the areas with the greatest energy resource
potential, and assessing future supply availability and demand
requirements,
(2) planning, coordinating, and siting additional energy
infrastructure, including generating facilities, electric transmission
facilities, pipelines, refineries, and distributed generation facilities to
maximize the efficiency of energy resources and infrastructure and meet
regional needs with the minimum adverse impacts on the
environment,
(3) identifying and resolving problems in distribution
networks,
(4) developing plans to respond to surge demand or emergency needs,
and
(5) developing renewable energy, energy efficiency, conservation,
and load control programs.
(b) Annual Conference on Regional Energy Coordination-
(1) ANNUAL CONFERENCE- The Secretary of Energy shall convene an
annual conference to promote regional coordination on energy policy and
infrastructure issues.
(2) PARTICIPATION- The Secretary of Energy shall invite appropriate
representatives of Federal, State, and regional energy organizations, and
other interested parties.
(3) STATE AND FEDERAL AGENCY COOPERATION- The Secretary of Energy
shall consult and cooperate with State and regional energy organizations,
the Secretary of the Interior, the Secretary of Agriculture, the Secretary
of Commerce, the Secretary of the Treasury, the Chairman of the Federal
Energy Regulatory Commission, the Administrator of the Environmental
Protection Agency, and the Chairman of the Council on Environmental Quality
in the planning and conduct of the conference.
(4) AGENDA- The Secretary of Energy, in consultation with the
officials identified in paragraph (3) and participants identified in
paragraph (2), shall establish an agenda for each conference that promotes
regional coordination on energy policy and infrastructure issues.
(5) RECOMMENDATIONS- Not later than 60 days after the conclusion of
each annual conference, the Secretary of Energy shall report to the
President and the Congress recommendations arising out of the conference
that may improve--
(A) regional coordination on energy policy and infrastructure
issues, and
(B) Federal support for regional coordination.
TITLE II--ELECTRICITY
Subtitle A--Amendments to the Federal Power Act
SEC. 201. DEFINITIONS.
(a) DEFINITION OF ELECTRIC UTILITY- Section 3(22) of the Federal Power
Act (16 U.S.C. 796(22)) is amended to read as follows:
`(22) `electric utility' means any person or Federal or State agency
(including any municipality) that sells electric energy; such term includes
the Tennessee Valley Authority and each Federal power marketing
agency.'.
(b) DEFINITION OF TRANSMITTING UTILITY- Section 3(23) of the Federal
Power Act (16 U.S.C. 796(23)) is amended to read as follows:
`(23) TRANSMITTING UTILITY- The term `transmitting utility' means an
entity (including any entity described in section 201(f)) that owns or
operates facilities used for the transmission of electric energy
in--
`(A) interstate commerce; or
`(B) for the sale of electric energy at wholesale.'.
SEC. 202. ELECTRIC UTILITY MERGERS.
Section 203(a) of the Federal Power Act (16 U.S.C. 824b) is amended to
read as follows:
`(a)(1) No public utility shall, without first having secured an order
of the Commission authorizing it to do so--
`(A) sell, lease, or otherwise dispose of the whole of its
facilities subject to the jurisdiction of the Commission, or any part
thereof of a value in excess of $10,000,000,
`(B) merge or consolidate, directly or indirectly, such facilities
or any part thereof with the facilities of any other person, by any means
whatsoever,
`(C) purchase, acquire, or take any security of any other public
utility, or
`(D) purchase, lease, or otherwise acquire existing facilities for
the generation of electric energy unless such facilities will be used
exclusively for the sale of electric energy at retail.
`(2) No holding company in a holding company system that includes a
transmitting utility or an electric utility company shall purchase, acquire,
or take any security of, or, by any means whatsoever, directly or indirectly,
merge or consolidate with a transmitting utility, an electric utility company,
a gas utility company, or a holding company in a holding company system that
includes a transmitting utility, an electric utility company, or a gas utility
company, without first having secured an order of the Commission authorizing
it to do so.
`(3) Upon application for such approval the Commission shall give
reasonable notice in writing to the Governor and State commission of each of
the States in which the physical property affected, or any part thereof, is
situated, and to such other persons as it may deem advisable.
`(4) After notice and opportunity for hearing, the Commission shall
approve the proposed disposition, consolidation, acquisition, or control, if
it finds that the proposed transaction--
`(A) will be consistent with the public interest;
`(B) will not adversely affect the interests of consumers of
electric energy of any public utility that is a party to the transaction or
is an associate company of any party to the transaction;
`(C) will not impair the ability of the Commission or any State
commission having jurisdiction over any public utility that is a party to
the transaction or an associate company of any party to the transaction to
protect the interests of consumers or the public; and
`(D) will not lead to cross-subsidization of associate companies or
encumber any utility assets for the benefit of an associate
company.
`(5) The Commission shall, by rule, adopt procedures for the
expeditious consideration of applications for the approval of dispositions,
consolidations, or acquisitions under this section. Such rules shall identify
classes of transactions, or specify criteria for transactions, that normally
meet the standards established in paragraph (4), and shall require the
Commission to grant or deny an application for approval of a transaction of
such type within 90 days after the conclusion of the hearing or opportunity to
comment under paragraph (4). If the Commission does not act within 90 days,
such application shall be deemed granted unless the Commission finds that
further consideration is required to determine whether the proposed
transaction meets the standards of paragraph (4) and issues one or more orders
tolling the time for acting on the application for an additional 90
days.
`(6) For purposes of this subsection, the terms `associate company',
`electric utility company', `gas utility company', `holding company', and
`holding company system' have the meaning given those terms in the Public
Utility Holding Company Act of 2002.'.
SEC. 203. MARKET-BASED RATES.
(a) APPROVAL OF MARKET-BASED RATES- Section 205 of the Federal Power
Act (16 U.S.C. 824d) is amended by adding at the end the following:
`(h) The Commission may determine whether a market-based rate for the
sale of electric energy subject to the jurisdiction of the Commission is just
and reasonable and not unduly discriminatory or preferential. In making such
determination, the Commission shall consider such factors as the Commission
may deem to be appropriate and in the public interest, including to the extent
the Commission considers relevant to the wholesale power market--
`(2) the nature of the market and its response mechanisms;
and
(b) REVOCATION OF MARKET-BASED RATES- Section 206 of the Federal Power
Act (16 U.S.C. 824e) is amended by adding at the end the following:
`(f) Whenever the Commission, after a hearing had upon its own motion
or upon complaint, finds that a rate charged by a public utility authorized to
charge a market-based rate under section 205 is unjust, unreasonable, unduly
discriminatory or preferential, the Commission shall determine the just and
reasonable rate and fix the same by order.'.
SEC. 204. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is amended
by--
(1) striking `the date 60 days after the filing of such complaint
nor later than 5 months after the expiration of such 60-day period' in the
second sentence and inserting `the date of the filing of such complaint nor
later than 5 months after the filing of such complaint';
(2) striking `60 days after' in the third sentence and inserting
`of'; and
(3) striking `expiration of such 60-day period' in the third
sentence and inserting `publication date'.
SEC. 205. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.
Part II of the Federal Power Act is further amended by inserting after
section 211 the following:
`OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES
`SEC. 211A. (a) Subject to section 212(h), the Commission may, by rule
or order, require an unregulated transmitting utility to provide transmission
services--
`(1) at rates that are comparable to those that the unregulated
transmitting utility charges itself, and
`(2) on terms and conditions (not relating to rates) that are
comparable to those under Commission rules that require public utilities to
offer open access transmission services and that are not unduly
discriminatory or preferential.
`(b) The Commission shall exempt from any rule or order under this
subsection any unregulated transmitting utility that--
`(1) sells no more than 4,000,000 megawatt hours of electricity per
year;
`(2) does not own or operate any transmission facilities that are
necessary for operating an interconnected transmission system (or any
portion thereof); or
`(3) meets other criteria the Commission determines to be in the
public interest.
`(c) The rate changing procedures applicable to public utilities under
subsections (c) and (d) of section 205 are applicable to unregulated
transmitting utilities for purposes of this section.
`(d) In exercising its authority under paragraph (1), the Commission
may remand transmission rates to an unregulated transmitting utility for
review and revision where necessary to meet the requirements of subsection
(a).
`(e) The provision of transmission services under subsection (a) does
not preclude a request for transmission services under section 211.
`(f) The Commission may not require a State or municipality to take
action under this section that constitutes a private business use for purposes
of section 141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
`(g) For purposes of this subsection, the term `unregulated
transmitting utility' means an entity that--
`(1) owns or operates facilities used for the transmission of
electric energy in interstate commerce, and
`(2) is either an entity described in section 201(f) or a rural
electric cooperative.'.
SEC. 206. ELECTRIC RELIABILITY STANDARDS.
Part II of the Federal Power Act (16 U.S.C 824 et seq.) is amended by
inserting the following after section 215 as added by this Act:
`SEC. 216. ELECTRIC RELIABILITY.
`(a) DEFINITIONS- For purposes of this section--
`(1) `bulk-power system' means the network of interconnected
transmission facilities and generating facilities;
`(2) `electric reliability organization' means a self-regulating
organization certified by the Commission under subsection (c) whose purpose
is to promote the reliability of the bulk-power system; and
`(3) `reliability standard' means a requirement to provide for
reliable operation of the bulk-power system approved by the Commission under
this section.
`(b) JURISIDICTION AND APPLICABILITY- The Commission shall have
jurisdiction, within the United States, over an electric reliability
organization, any regional entities, and all users, owners and operators of
the bulk-power system, including but not limited to the entities described in
section 201(f), for purposes of approving reliability standards and enforcing
compliance with this section. All users, owners and operators of the
bulk-power system shall comply with reliability standards that take effect
under this section.
`(c) CERTIFICATION- (1) The Commission shall issue a final rule to
implement the requirements of this section not later than 180 days after the
date of enactment of this section.
`(2) Following the issuance of a Commission rule under paragraph (1),
any person may submit an application to the Commission for certification as an
electric reliability organization. The Commission may certify an applicant if
the Commission determines that the applicant--
`(A) has the ability to develop, and enforce reliability standards
that provide for an adequate level of reliability of the bulk-power
system;
`(B) has established rules that--
`(i) assure its independence of the users and owners and operators
of the bulk-power system; while assuring fair stakeholder representation
in the selection of its directors and balanced decisionmaking in any
committee or subordinate organizational structure;
`(ii) allocate equitably dues, fees, and other charges among end
users for all activities under this section;
`(iii) provide fair and impartial procedures for enforcement of
reliability standards through imposition of penalties (including
limitations on activities, functions, or operations, or other appropriate
sanctions); and
`(iv) provide for reasonable notice and opportunity for public
comment, due process, openness, and balance of interests in developing
reliability standards and otherwise exercising its duties.
`(3) If the Commission receives two or more timely applications that
satisfy the requirements of this subsection, the Commission shall approve only
the application it concludes will best implement the provisions of this
section.
`(d) RELIABILITY STANDARDS- (1) An electric reliability organization
shall file a proposed reliability standard or modification to a reliability
standard with the Commission.
`(2) The Commission may approve a proposed reliability standard or
modification to a reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential, and in the public
interest. The Commission shall give due weight to the technical expertise of
the electric reliability organization with respect to the content of a
proposed standard or modification to a reliability standard, but shall not
defer with respect to its effect on competition.
`(3) The electric reliability organization and the Commission shall
rebuttably presume that a proposal from a regional entity organized on an
interconnection-wide basis for a reliability standard or modification to a
reliability standard to be applicable on an interconnection-wide basis is
just, reasonable, and not unduly discriminatory or preferential, and in the
public interest.
`(4) The Commission shall remand to the electric reliability
organization for further consideration a proposed reliability standard or a
modification to a reliability standard that the Commission disapproves in
whole or in part.
`(5) The Commission, upon its own motion or upon complaint, may order
an electric reliability organization to submit to the Commission a proposed
reliability standard or a modification to a reliability standard that
addresses a specific matter if the Commission considers such a new or modified
reliability standard appropriate to carry out this section.
`(e) ENFORCEMENT- (1) An electric reliability organization may impose
a penalty on a user or owner or operator of the bulk-power system if the
electric reliability organization, after notice and an opportunity for a
hearing--
`(A) finds that the user or owner or operator of the bulk-power
system has violated a reliability standard approved by the Commission under
subsection (d); and
`(B) files notice with the Commission, which shall affirm, set aside
or modify the action.
`(2) On its own motion or upon complaint, the Commission may order
compliance with a reliability standard and may impose a penalty against a user
or owner or operator of the bulk-power system, if the Commission finds, after
notice and opportunity for a hearing, that the user or owner or operator of
the bulk-power system has violated or threatens to violate a reliability
standard.
`(3) The Commission shall establish regulations authorizing the
electric reliability organization to enter into an agreement to delegate
authority to a regional entity for the purpose of proposing and enforcing
reliability standards (including related activities) if the regional entity
satisfies the provisions of subsection (c)(2) (A) and (B) and the agreement
promotes effective and efficient administration of bulk-power system
reliability, and may modify such delegation. The electric reliability
organization and the Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an interconnection-wide basis
promotes effective and efficient administration of bulk-power system
reliability and should be approved. Such regulation may provide that the
Commission may assign the electric reliability organization's authority to
enforce reliability standards directly to a regional entity consistent with
the requirements of this paragraph.
`(4) The Commission may take such action as is necessary or
appropriate against the electric reliability organization or a regional entity
to ensure compliance with a reliability standard or any Commission order
affecting the electric reliability organization or a regional entity.
`(f) CHANGES IN ELECTRICITY RELIALB1LITY ORGANIZATION RULES- An
electric reliability organization shall file with the Commission for approval
any proposed rule or proposed rule change, accompanied by an explanation of
its basis and purpose. The Commission, upon its own motion or complaint, may
propose a change to the rules of the electric reliability organization. A
proposed rule or proposed rule change shall take effect upon a finding by the
Commission, after notice and opportunity for comment, that the change is just,
reasonable, not unduly discriminatory or preferential, is in the public
interest, and satisfies the requirements of subsection (c)(2).
`(g) COORDINATION WITH CANADA AND MEXICO- (1) The electric reliability
organization shall take all appropriate steps to gain recognition in Canada
and Mexico.
`(2) The President shall use his best efforts to enter into
international agreements with the governments of Canada and Mexico to provide
for effective compliance with reliability standards and the effectiveness of
the electric reliability organization in the United States and Canada or
Mexico.
`(h) RELIABILITY REPORTS- The electric reliability organization shall
conduct periodic assessments of the reliability and adequacy of the
interconnected bulk-power system in North America.
`(i) SAVINGS PROVISIONS- (1) The electric reliability organization
shall have authority to develop and enforce compliance with standards for the
reliable operation of only the bulk-power system.
`(2) This section does not provide the electric reliability
organization or the Commission with the authority to order the construction of
additional generation or transmission capacity or to set and enforce
compliance with standards for adequacy or safety of electric facilities or
services.
`(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy, and
reliability of electric service within that State, as long as such action is
not inconsistent with any reliability standard.
`(4) Within 90 days of the application of the electric reliability
organization or other affected party, and after notice and opportunity for
comment, the Commission shall issue a final order determining whether a State
action is inconsistent with a reliability standard, taking into consideration
any recommendation of the electric reliability organization.
`(5) The Commission, after consultation with the electric reliability
organization, may stay the effectiveness of any State action, pending the
Commission's issuance of a final order.
`(j) APPLICATION OF ANTITRUST LAWS-
`(1) IN GENERAL- To the extent undertaken to develop, implement, or
enforce a reliability standard, each of the following activities shall not,
in any action under the antitrust laws, be deemed illegal per
se--
`(A) activities undertaken by an electric reliability organization
under this section, and
`(B) activities of a user or owner or operator of the bulk-power
system undertaken in good faith under the rules of an electric reliability
organization.
`(2) RULE OF REASON- In any action under the antitrust laws, an
activity described in paragraph (1) shall be judged on the basis of its
reasonableness, taking into account all relevant factors affecting
competition and reliability.
`(3) DEFINITION- For purposes of this subsection, `antitrust laws'
has the meaning given the term in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that it includes section 5 of the
Federal Trade Commission Act (15 U. S.C. 45) to the extent that section 5
applies to unfair methods of competition.
`(k) REGIONAL ADVISORY BODIES- The Commission shall establish a
regional advisory body on the petition of at least two-thirds of the States
within a region that have more than one-half of their electric load served
within the region. A regional advisory body shall be composed of one member
from each participating State in the region, appointed by the Governor of each
State, and may include representatives of agencies, States, and provinces
outside the United States. A regional advisory body may provide advice to the
electric reliability organization, a regional reliability entity, or the
Commission regarding the governance of an existing or proposed regional
reliability entity within the same region, whether a standard proposed to
apply within the region is just, reasonable, not unduly discriminatory or
preferential, and in the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference to the advice
of any such regional advisory body if that body is organized on an
interconnection-wide basis.
`(l) APPLICATION TO ALASKA AND HAWAII- The provisions of this section
do not apply to Alaska or Hawaii.'.
SEC. 207. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act is further amended by adding at the
end the following:
`SEC. 216. MARKET TRANSPARENCY RULES.
`(a) COMMISSION RULES- Not later than 180 days after the date of
enactment of this section, the Commission shall issue rules establishing an
electronic information system to provide information about the availability
and price of wholesale electric energy and transmission services to the
Commission, State commissions, buyers and sellers of wholesale electric
energy, users of transmission services, and the public on a timely
basis.
`(b) INFORMATION REQUIRED- The Commission shall require--
`(1) each regional transmission organization to provide statistical
information about the available capacity and capacity constraints of
transmission facilities operated by the organization; and
`(2) each broker, exchange, or other market-making entity that
matches offers to sell and offers to buy wholesale electric energy in
interstate commerce to provide statistical information about the amount and
sale price of sales of electric energy at wholesale in interstate commerce
it transacts.
`(c) TIMELY BASIS- The Commission shall require the information
required under subsection (b) to be posted on the Internet as soon as
practicable and updated as frequently as practicable.
`(d) PROTECTION OF SENSITIVE INFORMATION- The Commission shall exempt
from disclosure commercial or financial information that the Commission, by
rule or order, determines to be privileged, confidential, or otherwise
sensitive.'.
SEC. 208. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.
Part II of the Federal Power Act is further amended by adding at the
end the following:
`SEC. 217. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.
`(a) FAIR TREATMENT OF INTERMITTENT GENERATORS- The Commission shall
ensure that all transmitting utilities provide transmission service to
intermittent generators in a manner that does not unduly prejudice or
disadvantage such generators for characteristics that are--
`(1) inherent to intermittent energy resources; and
`(2) are beyond the control of such generators.
`(b) POLICIES- The Commission shall ensure that the requirement in
subsection (a) is met by adopting such policies as it deems appropriate which
shall include the following:
`(1) Subject to the sole exception set forth in paragraph (2), the
Commission shall ensure that the rates transmitting utilities charge
intermittent generator customers for transmission services do not unduly
prejudice or disadvantage intermittent generator customers for scheduling
deviations.
`(2) The Commission may exempt a transmitting utility from the
requirement set forth in paragraph (1) if the transmitting utility
demonstrates that scheduling deviations by its intermittent generator
customers are likely to have an adverse impact on the reliability of the
transmitting utility's system.
`(3) The Commission shall ensure that to the extent any transmission
charges recovering the transmitting utility's embedded costs are assessed to
such intermittent generators, they are assessed to such generators on the
basis of kilowatt-hours generated or some other method to ensure that they
are fully recovered by the transmitting utility.
`(4) The Commission shall require transmitting utilities to offer to
intermittent generators, and may require transmitting utilities to offer to
all transmission customers, access to nonfirm transmission
service.
`(c) DEFINITIONS- As used in this section:
`(1) The term `intermittent generator' means a facility that
generates electricity using wind or solar energy and no other energy
source.
`(2) The term `nonfirm transmission service' means transmission
service provided on an `as available' basis.
`(3) The term `scheduling deviation' means delivery of more or less
energy than has previously been forecast in a schedule submitted by an
intermittent generator to a control area operator or transmitting
utility.'.
SEC. 209. ENFORCEMENT.
(a) COMPLAINTS- Section 306 of the Federal Power Act (16 U.S.C. 825e)
is amended by--
(1) inserting `electric utility,' after `Any person,';
and
(2) inserting `transmitting utility,' after `licensee' each place it
appears.
(b) INVESTIGATIONS- Section 307(a) of the Federal Power Act (16 U.S.C.
825f(a)) is amended by inserting `or transmitting utility' after `any person'
in the first sentence.
(c) REVIEW OF COMMISSION ORDERS- Section 313(a) of the Federal Power
Act (16 U.S.C. 8251) is amended by inserting `electric utility,' after `Any
person,' in the first sentence.
(d) CRIMINAL PENALTIES- Section 316(c) of the Federal Power Act (16
U.S.C. 825o(c)) is repealed.
(e) CIVIL PENALTIES- Section 316A of the Federal Power Act (16 U.S.C.
825o-1) is amended by striking `section 211, 212, 213, or 214' each place it
appears and inserting `Part II'.
SEC. 210. ELECTRIC POWER TRANSMISSION SYSTEMS.
The Federal Government should be attentive to electric power
transmission issues, including issues that can be addressed through policies
that facilitate investment in, the enhancement of, and the efficiency of
electric power transmission systems.
Subtitle B--Amendments to the Public Utility Holding Company
Act
SEC. 221. SHORT TITLE.
This subtitle may be cited as the `Public Utility Holding Company Act
of 2002'.
SEC. 222. DEFINITIONS.
For purposes of this subtitle:
(1) The term `affiliate' of a company means any company, 5 percent
or more of the outstanding voting securities of which are owned, controlled,
or held with power to vote, directly or indirectly, by such
company.
(2) The term `associate company' of a company means any company in
the same holding company system with such company.
(3) The term `Commission' means the Federal Energy Regulatory
Commission.
(4) The term `company' means a corporation, partnership,
association, joint stock company, business trust, or any organized group of
persons, whether incorporated or not, or a receiver, trustee, or other
liquidating agent of any of the foregoing.
(5) The term `electric utility company' means any company that owns
or operates facilities used for the generation, transmission, or
distribution of electric energy for sale.
(6) The terms `exempt wholesale generator' and `foreign utility
company' have the same meanings as in sections 32 and 33, respectively, of
the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b),
as those sections existed on the day before the effective date of this
subtitle.
(7) The term `gas utility company' means any company that owns or
operates facilities used for distribution at retail (other than the
distribution only in enclosed portable containers or distribution to tenants
or employees of the company operating such facilities for their own use and
not for resale) of natural or manufactured gas for heat, light, or
power.
(8) The term `holding company' means--
(A) any company that directly or indirectly owns, controls, or
holds, with power to vote, 10 percent or more of the outstanding voting
securities of a public utility company or of a holding company of any
public utility company; and
(B) any person, determined by the Commission, after notice and
opportunity for hearing, to exercise directly or indirectly (either alone
or pursuant to an arrangement or understanding with one or more persons)
such a controlling influence over the management or policies of any public
utility company or holding company as to make it necessary or appropriate
for the rate protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and liabilities imposed
by this subtitle upon holding companies.
(9) The term `holding company system' means a holding company,
together with its subsidiary companies.
(10) The term `jurisdictional rates' means rates established by the
Commission for the transmission of electric energy in interstate commerce,
the sale of electric energy at wholesale in interstate commerce, the
transportation of natural gas in interstate commerce, and the sale in
interstate commerce of natural gas for resale for ultimate public
consumption for domestic, commercial, industrial, or any other
use.
(11) The term `natural gas company' means a person engaged in the
transportation of natural gas in interstate commerce or the sale of such gas
in interstate commerce for resale.
(12) The term `person' means an individual or company.
(13) The term `public utility' means any person who owns or operates
facilities used for transmission of electric energy in interstate commerce
or sales of electric energy at wholesale in interstate commerce.
(14) The term `public utility company' means an electric utility
company or a gas utility company.
(15) The term `State commission' means any commission, board,
agency, or officer, by whatever name designated, of a State, municipality,
or other political subdivision of a State that, under the laws of such
State, has jurisdiction to regulate public utility companies.
(16) The term `subsidiary company' of a holding company
means--
(A) any company, 10 percent or more of the outstanding voting
securities of which are directly or indirectly owned, controlled, or held
with power to vote, by such holding company; and
(B) any person, the management or policies of which the
Commission, after notice and opportunity for hearing, determines to be
subject to a controlling influence, directly or indirectly, by such
holding company (either alone or pursuant to an arrangement or
understanding with one or more other persons) so as to make it necessary
for the rate protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and liabilities imposed
by this subtitle upon subsidiary companies of holding
companies.
(17) The term `voting security' means any security presently
entitling the owner or holder thereof to vote in the direction or management
of the affairs of a company.
SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF
1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.)
is repealed.
SEC. 224. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) IN GENERAL- Each holding company and each associate company
thereof shall maintain, and shall make available to the Commission, such
books, accounts, memoranda, and other records as the Commission deems to be
relevant to costs incurred by a public utility or natural gas company that is
an associate company of such holding company and necessary or appropriate for
the protection of utility customers with respect to jurisdictional
rates.
(b) AFFILIATE COMPANIES- Each affiliate of a holding company or of any
subsidiary company of a holding company shall maintain, and shall make
available to the Commission, such books, accounts, memoranda, and other
records with respect to any transaction with another affiliate, as the
Commission deems to be relevant to costs incurred by a public utility or
natural gas company that is an associate company of such holding company and
necessary or appropriate for the protection of utility customers with respect
to jurisdictional rates.
(c) HOLDING COMPANY SYSTEMS- The Commission may examine the books,
accounts, memoranda, and other records of any company in a holding company
system, or any affiliate thereof, as the Commission deems to be relevant to
costs incurred by a public utility or natural gas company within such holding
company system and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
(d) CONFIDENTIALITY- No member, officer, or employee of the Commission
shall divulge any fact or information that may come to his or her knowledge
during the course of examination of books, accounts, memoranda, or other
records as provided in this section, except as may be directed by the
Commission or by a court of competent jurisdiction.
SEC. 225. STATE ACCESS TO BOOKS AND RECORDS.
(a) In GENERAL- Upon the written request of a State commission having
jurisdiction to regulate a public utility company in a holding company system,
the holding company or any associate company or affiliate thereof, other than
such public utility company, wherever located, shall produce for inspection
books, accounts, memoranda, and other records that--
(1) have been identified in reasonable detail by the State
commission;
(2) the State commission deems are relevant to costs incurred by
such public utility company; and
(3) are necessary for the effective discharge of the
responsibilities of the State commission with respect to such
proceeding.
(b) LIMITATION- Subsection (a) does not apply to any person that is a
holding company solely by reason of ownership of one or more qualifying
facilities under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 et seq.).
(c) CONFIDENTIALITY OF INFORMATION- The production of books, accounts,
memoranda, and other records under subsection (a) shall be subject to such
terms and conditions as may be necessary and appropriate to safeguard against
unwarranted disclosure to the public of any trade secrets or sensitive
commercial information.
(d) EFFECT ON STATE LAW- Nothing in this section shall preempt
applicable State law concerning the provision of books, accounts, memoranda,
and other records, or in any way limit the rights of any State to obtain
books, accounts, memoranda, and other records under any other Federal law,
contract, or otherwise.
(e) COURT JURISDICTION- Any United States district court located in
the State in which the State commission referred to in subsection (a) is
located shall have jurisdiction to enforce compliance with this
section.
SEC. 226. EXEMPTION AUTHORITY.
(a) RULEMAKING- Not later than 90 days after the effective date of
this subtitle, the Commission shall promulgate a final rule to exempt from the
requirements of section 224 any person that is a holding company, solely with
respect to one or more--
(1) qualifying facilities under the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) OTHER AUTHORITY- The Commission shall exempt a person or
transaction from the requirements of section 224, if, upon application or upon
the motion of the Commission--
(1) the Commission finds that the books, accounts, memoranda, and
other records of any person are not relevant to the jurisdictional rates of
a public utility or natural gas company; or
(2) the Commission finds that any class of transactions is not
relevant to the jurisdictional rates of a public utility or natural gas
company.
SEC. 227. AFFILIATE TRANSACTIONS.
(a) COMMISSION AUTHORITY UNAFFECTED- Nothing in this subtitle shall
limit the authority of the Commission under the Federal Power Act (16 U.S.C.
791a et seq.) to require that jurisdictional rates are just and reasonable,
including the ability to deny or approve the pass through of costs, the
prevention of cross-subsidization, and the promulgation of such rules and
regulations as are necessary or appropriate for the protection of utility
consumers.
(b) RECOVERY OF COSTS- Nothing in this subtitle shall preclude the
Commission or a State commission from exercising its jurisdiction under
otherwise applicable law to determine whether a public utility company, public
utility, or natural gas company may recover in rates any costs of an activity
performed by an associate company, or any costs of goods or services acquired
by such public utility company from an associate company.
SEC. 228. APPLICABILITY.
Except as otherwise specifically provided in this subtitle, no
provision of this subtitle shall apply to, or be deemed to include--
(2) a State or any political subdivision of a State;
(3) any foreign governmental authority not operating in the United
States;
(4) any agency, authority, or instrumentality of any entity referred
to in paragraph (1), (2), or (3); or
(5) any officer, agent, or employee of any entity referred to in
paragraph (1), (2), or (3) acting as such in the course of his or her
official duty.
SEC. 229. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or a State
commission from exercising its jurisdiction under otherwise applicable law to
protect utility customers.
SEC. 230. ENFORCEMENT.
The Commission shall have the same powers as set forth in sections 306
through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to enforce the
provisions of this subtitle.
SEC. 231. SAVINGS PROVISIONS.
(a) IN GENERAL- Nothing in this subtitle prohibits a person from
engaging in or continuing to engage in activities or transactions in which it
is legally engaged or authorized to engage on the effective date of this
subtitle.
(b) EFFECT ON OTHER COMMISSION AUTHORITY- Nothing in this subtitle
limits the authority of the Commission under the Federal Power Act (16 U.S.C.
791a et seq.) (including section 301 of that Act) or the Natural Gas Act (15
U.S.C. 717 et seq.) (including section 8 of that Act).
SEC. 232. IMPLEMENTATION.
Not later than 18 months after the date of enactment of this subtitle,
the Commission shall--
(1) promulgate such regulations as may be necessary or appropriate
to implement this subtitle (other than section 225); and
(2) submit to the Congress detailed recommendations on technical and
conforming amendments to Federal law necessary to carry out this subtitle
and the amendments made by this subtitle.
SEC. 233. TRANSFER OF RESOURCES.
All books and records that relate primarily to the functions
transferred to the Commission under this subtitle shall be transferred from
the Securities and Exchange Commission to the Commission.
SEC. 234. INTER-AGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND RETAIL
MARKETS FOR ELECTRIC ENERGY.
(a) TASK FORCE- There is established an inter-agency task force, to be
known as the `Electric Energy Market Competition Task Force' (referred to in
this section as the `task force'), which shall consist of--
(1) one member each from--
(A) the Department of Justice, to be appointed by the Attorney
General of the United States;
(B) the Federal Energy Regulatory Commission, to be appointed by
the chairman of that Commission; and
(C) the Federal Trade Commission, to be appointed by the chairman
of that Commission; and
(2) two advisory members (who shall not vote), of whom--
(A) one shall be appointed by the Secretary of Agriculture to
represent the Rural Utility Service; and
(B) one shall be appointed by the Chairman of the Securities and
Exchange Commission to represent that Commission.
(1) STUDY- The task force shall perform a study and analysis of the
protection and promotion of competition within the wholesale and retail
market for electric energy in the United States.
(A) FINAL REPORT- Not later than 1 year after the effective date
of this subtitle, the task force shall submit a final report of its
findings under paragraph (1) to the Congress.
(B) PUBLIC COMMENT- At least 60 days before submission of a final
report to the Congress under subparagraph (A), the task force shall
publish a draft report in the Federal Register to provide for public
comment.
(c) FOCUS- The study required by this section shall examine--
(1) the best means of protecting competition within the wholesale
and retail electric market;
(2) activities within the wholesale and retail electric market that
may allow unfair and unjustified discriminatory and deceptive
practices;
(3) activities within the wholesale and retail electric market,
including mergers and acquisitions, that deny market access or suppress
competition;
(4) cross-subsidization that may occur between regulated and
nonregulated activities; and
(5) the role of State public utility commissions in regulating
competition in the wholesale and retail electric market.
(d) CONSULTATION- In performing the study required by this section,
the task force shall consult with and solicit comments from its advisory
members, the States, representatives of the electric power industry, and the
public.
SEC. 235. GAO STUDY ON IMPLEMENTATION.
(a) STUDY- The Comptroller General shall conduct a study of the
success of the Federal Government and the States during the 18-month period
following the effective date of this subtitle in--
(1) the prevention of anticompetitive practices and other abuses by
public utility holding companies, including cross-subsidization and other
market power abuses; and
(2) the promotion of competition and efficient energy markets to the
benefit of consumers.
(b) REPORT TO CONGRESS- Not earlier than 18 months after the effective
date of this subtitle or later than 24 months after that effective date, the
Comptroller General shall submit a report to the Congress on the results of
the study conducted under subsection (a), including probable causes of its
findings and recommendations to the Congress and the States for any necessary
legislative changes.
SEC. 236. EFFECTIVE DATE.
This subtitle shall take effect 18 months after the date of enactment
of this subtitle.
SEC. 237. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as may be necessary
to carry out this subtitle.
SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.
(a) CONFLICT OF JURISDICTION- Section 318 of the Federal Power Act (16
U.S.C. 825q) is repealed.
(b) DEFINITIONS- (1) Section 201(g) of the Federal Power Act (16
U.S.C. 824(g)) is amended by striking `1935' and inserting `2002'.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is amended
by striking `1935' and inserting `2002'.
Subtitle C--Amendments to the Public Utility Regulatory Policies Act
of 1978
SEC. 241. REAL-TIME PRICING AND TIME-OF-USE METERING
STANDARDS.
(a) ADOPTION OF STANDARDS- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at
the end the following:
`(11) REAL-TIME PRICING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a real-time
rate schedule, under which the rate charged by the electric utility varies
by the hour (or smaller time interval) according to changes in the electric
utility's wholesale power cost. The real-time pricing service shall enable
the electric consumer to manage energy use and cost through real-time
metering and communications technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.
`(12) TIME-OF-USE METERING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a
time-of-use rate schedule which enables the electric consumer to manage
energy use and cost through time-of-use metering and technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standards set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES- Section 115 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the
following:
`(i) REAL-TIME PRICING- In a State that permits third-party marketers
to sell electric energy to retail electric consumers, the electric consumer
shall be entitled to receive the same real-time metering and communication
service as a direct retail electric consumer of the electric utility.
`(j) TIME-OF-USE METERING- In a State that permits third-party
marketers to sell electric energy to retail electric consumers, the electric
consumer shall be entitled to receive the same time-of-use metering and
communication service as a direct retail electric consumer of the electric
utility.'.
SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.
(a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at
the end the following:
`(6) DISTRIBUTED GENERATION- Each electric utility shall provide
distributed generation, combined heat and power, and district heating and
cooling systems competitive access to the local distribution grid and
competitive pricing of service, and shall use simplified standard contracts
for the interconnection of generating facilities that have a power
production capacity of 250 kilowatts or less.
`(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse
to interconnect a generating facility with the distribution facilities of
the electric utility if the owner or operator of the generating facility
complies with technical standards adopted by the State regulatory authority
and agrees to pay the costs established by such State regulatory
authority.
`(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric
utility shall develop a plan to minimize dependence on one fuel source and
to ensure that the electric energy it sells to consumers is generated using
a diverse range of fuels and technologies, including renewable
technologies.
`(9) FOSSIL FUEL EFFICIENCY- Each electric utility shall develop and
implement a ten-year plan to increase the efficiency of its fossil fuel
generation and shall monitor and report to its State regulatory authority
excessive greenhouse gas emissions resulting from the inefficient operation
of its fossil fuel generating plants.'.
(b) TIME FOR ADOPTING STANDARDS- Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding
at the end the following:
`(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7),
(8), and (9) of subsection (b), any reference contained in this section to the
date of enactment of the Public Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of enactment of this
subsection.'.
SEC. 243. TECHNICAL ASSISTANCE.
Section 132(c) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2642(c)) is amended to read as follows:
`(c) TECHNICAL ASSISTANCE FOR CERTAIN RESPONSIBILITIES- The Secretary
may provide such technical assistance as he determines appropriate to assist
State regulatory authorities and electric utilities in carrying out their
responsibilities under section 111(d)(11) and paragraphs (6), (7), (8), and
(9) of section 113(b).'.
SEC. 244. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE
REQUIREMENTS.
(a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section
210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3)
is amended by adding at the end the following:
`(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-
`(1) OBLIGATION TO PURCHASE- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to purchase electric energy from a qualifying
cogeneration facility or a qualifying small power production facility under
this section if the Commission finds that the qualifying cogeneration
facility or qualifying small power production facility has access to
independently administered, auction-based day ahead and real time wholesale
markets for the sale of electric energy.
`(2) OBLIGATION TO SELL- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to sell electric energy to a qualifying cogeneration
facility or a qualifying small power production facility under this section
if competing retail electric suppliers are able to provide electric energy
to the qualifying cogeneration facility or qualifying small power production
facility.
`(3) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this
subsection affects the rights or remedies of any party under any contract or
obligation, in effect on the date of enactment of this subsection, to
purchase electric energy or capacity from or to sell electric energy or
capacity to a facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
`(A) REGULATION- To ensure recovery by an electric utility that
purchases electric energy or capacity from a qualifying facility pursuant
to any legally enforceable obligation entered into or imposed under this
section before the date of enactment of this subsection, of all prudently
incurred costs associated with the purchases, the Commission shall issue
and enforce such regulations as may be required to ensure that the
electric utility shall collect the prudently incurred costs associated
with such purchases.
`(B) ENFORCEMENT- A regulation under subparagraph (A) shall be
enforceable in accordance with the provisions of law applicable to
enforcement of regulations under the Federal Power Act (16 U.S.C. 791a et
seq.).'.
(b) ELIMINATION OF OWNERSHIP LIMITATIONS-
(1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C))
is amended to read as follows:
`(C) `qualifying small power production facility' means a small
power production facility that the Commission determines, by rule, meets
such requirements (including requirements respecting minimum size, fuel
use, and fuel efficiency) as the Commission may, by rule,
prescribe.'.
(2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B))
is amended to read as follows:
`(B) `qualifying cogeneration facility' means a cogeneration facility
that the Commission determines, by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and fuel efficiency) as the
Commission may, by rule, prescribe.'.
SEC. 245. NET METERING.
(a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is further amended by
adding at the end the following:
`(13) NET METERING- (A) Each electric utility shall make available
upon request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further amended by adding
at the end the following:
`(1) RATES AND CHARGES- An electric utility--
`(A) shall charge the owner or operator of an on-site generating
facility rates and charges that are identical to those that would be
charged other electric consumers of the electric utility in the same rate
class; and
`(B) shall not charge the owner or operator of an on-site
generating facility any additional standby, capacity, interconnection, or
other rate or charge.
`(2) MEASUREMENT- An electric utility that sells electric energy to
the owner or operator of an on-site generating facility shall measure the
quantity of electric energy produced by the on-site facility and the
quantity of electric energy consumed by the owner or operator of an on-site
generating facility during a billing period in accordance with normal
metering practices.
`(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED-
If the quantity of electric energy sold by the electric utility to an
on-site generating facility exceeds the quantity of electric energy supplied
by the on-site generating facility to the electric utility during the
billing period, the electric utility may bill the owner or operator for the
net quantity of electric energy sold, in accordance with normal metering
practices.
`(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED-
If the quantity of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of electric energy
sold by the electric utility to the on-site generating facility during the
billing period--
`(A) the electric utility may bill the owner or operator of the
on-site generating facility for the appropriate charges for the billing
period in accordance with paragraph (2); and
`(B) the owner or operator of the on-site generating facility
shall be credited for the excess kilowatt-hours generated during the
billing period, with the kilowatt-hour credit appearing on the bill for
the following billing period.
`(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site
generating facility and net metering system used by an electric consumer
shall meet all applicable safety, performance, reliability, and
interconnection standards established by the National Electrical Code, the
Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.
`(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission,
after consultation with State regulatory authorities and nonregulated
electric utilities and after notice and opportunity for comment, may adopt,
by rule, additional control and testing requirements for on-site generating
facilities and net metering systems that the Commission determines are
necessary to protect public safety and system reliability.
`(7) DEFINITIONS- For purposes of this subsection:
`(A) The term `eligible on-site generating facility'
means--
`(i) a facility on the site of a residential electric consumer
with a maximum generating capacity of 10 kilowatts or less that is
fueled by solar energy, wind energy, or fuel cells; or
`(ii) a facility on the site of a commercial electric consumer
with a maximum generating capacity of 500 kilowatts or less that is
fueled solely by a renewable energy resource, landfill gas, or a high
efficiency system.
`(B) The term `renewable energy resource' means solar, wind,
biomass, or geothermal energy.
`(C) The term `high efficiency system' means fuel cells or
combined heat and power.
`(D) The term `net metering service' means service to an electric
consumer under which electric energy generated by that electric consumer
from an eligible on-site generating facility and delivered to the local
distribution facilities may be used to offset electric energy provided by
the electric utility to the electric consumer during the applicable
billing period.'.
Subtitle D--Consumer Protections
SEC. 251. INFORMATION DISCLOSURE.
(a) OFFERS AND SOLICITATIONS- The Federal Trade Commission shall issue
rules requiring each electric utility that makes an offer to sell electric
energy, or solicits electric consumers to purchase electric energy to provide
the electric consumer a statement containing the following
information--
(1) the nature of the service being offered, including information
about interruptibility of service;
(2) the price of the electric energy, including a description of any
variable charges;
(3) a description of all other charges associated with the service
being offered, including access charges, exit charges, back-up service
charges, stranded cost recovery charges, and customer service charges;
and
(4) information the Federal Trade Commission determines is
technologically and economically feasible to provide, is of assistance to
electric consumers in making purchasing decisions, and concerns--
(A) the product or its price;
(B) the share of electric energy that is generated by each fuel
type; and
(C) the environmental emissions produced in generating the
electric energy.
(b) PERIODIC BILLINGS- The Federal Trade Commission shall issue rules
requiring any electric utility that sells electric energy to transmit to each
of its electric consumers, in addition to the information transmitted pursuant
to section 115(f) of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2625(f)), a clear and concise statement containing the information
described in subsection (a)(4) for each billing period (unless such
information is not reasonably ascertainable by the electric utility).
SEC. 252. CONSUMER PRIVACY.
(a) PROHIBITION- The Federal Trade Commission shall issue rules
prohibiting any electric utility that obtains consumer information in
connection with the sale or delivery of electric energy to an electric
consumer from using, disclosing, or permitting access to such information
unless the electric consumer to whom such information relates provides prior
written approval.
(b) PERMITTED USE- The rules issued under this section shall not
prohibit any electric utility from using, disclosing, or permitting access to
consumer information referred to in subsection (a) for any of the following
purposes--
(1) to facilitate an electric consumer's change in selection of an
electric utility under procedures approved by the State or State regulatory
authority;
(2) to initiate, render, bill, or collect for the sale or delivery
of electric energy to electric consumers or for related services;
(3) to protect the rights or property of the person obtaining such
information;
(4) to protect retail electric consumers from fraud, abuse, and
unlawful subscription in the sale or delivery of electric energy to such
consumers;
(5) for law enforcement purposes; or
(6) for purposes of compliance with any Federal, State, or local law
or regulation authorizing disclosure of information to a Federal, State, or
local agency.
(c) AGGREGATE CONSUMER INFORMATION- The rules issued under this
subsection may permit a person to use, disclose, and permit access to
aggregate consumer information and may require an electric utility to make
such information available to other electric utilities upon request and
payment of a reasonable fee.
(d) DEFINITIONS- As used in this section:
(1) The term `aggregate consumer information' means collective data
that relates to a group or category of retail electric consumers, from which
individual consumer identities and characteristics have been
removed.
(2) The term `consumer information' means information that relates
to the quantity, technical configuration, type, destination, or amount of
use of electric energy delivered to any retail electric consumer.
SEC. 253. OFFICE OF CONSUMER ADVOCACY.
(a) DEFINITIONS- In this section:
(1) COMMISSION- The term `Commission' means the Federal Energy
Regulatory Commission.
(2) ENERGY CUSTOMER- The term `energy customer' means a residential
customer or a small commercial customer that receives products or services
from a public utility or natural gas company under the jurisdiction of the
Commission.
(3) NATURAL GAS COMPANY- The term `natural gas company' has the
meaning given the term in section 2 of the Natural Gas Act (15 U.S.C. 717a),
as modified by section 601(a) of the Natural Gas Policy Act of 1978 (15
U.S.C. 3431(a)).
(4) OFFICE- The term `Office' means the Office of Consumer Advocacy
established by subsection (b)(1).
(5) PUBLIC UTILITY- The term `public utility' has the meaning given
the term in section 201(e) of the Federal Power Act (16 U.S.C.
824(e)).
(6) SMALL COMMERCIAL CUSTOMER- The term `small commercial customer'
means a commercial customer that has a peak demand of not more than 1,000
kilowatts per hour.
(1) ESTABLISHMENT- There is established within the Department of
Justice the Office of Consumer Advocacy.
(2) DIRECTOR- The Office shall be headed by a Director to be
appointed by the President, by and with the advice and consent of the
Senate.
(3) DUTIES- The Office may represent the interests of energy
customers on matters concerning rates or service of public utilities and
natural gas companies under the jurisdiction of the Commission--
(A) at hearings of the Commission;
(B) in judicial proceedings in the courts of the United
States;
(C) at hearings or proceedings of other Federal regulatory
agencies and commissions.
SEC. 254. UNFAIR TRADE PRACTICES.
(a) SLAMMING- The Federal Trade Commission shall issue rules
prohibiting the change of selection of an electric utility except with the
informed consent of the electric consumer.
(b) CRAMMING- The Federal Trade Commission shall issue rules
prohibiting the sale of goods and services to an electric consumer unless
expressly authorized by law or the electric consumer.
SEC. 255. APPLICABLE PROCEDURES.
The Federal Trade Commission shall proceed in accordance with section
553 of title 5, United States Code, when prescribing a rule required by this
subtitle.
SEC. 256. FEDERAL TRADE COMMISSION ENFORCEMENT.
Violation of a rule issued under this subtitle shall be treated as a
violation of a rule under section 18 of the Federal Trade Commission Act (15
U.S.C. 57a) respecting unfair or deceptive acts or practices. All functions
and powers of the Federal Trade Commission under such Act are available to the
Federal Trade Commission to enforce compliance with this subtitle
notwithstanding any jurisdictional limits in such Act.
SEC. 257. STATE AUTHORITY.
Nothing in this subtitle shall be construed to preclude a State or
State regulatory authority from prescribing and enforcing laws, rules, or
procedures regarding the practices which are the subject of this
section.
SEC. 258. APPLICATION OF SUBTITLE.
The provisions of this subtitle apply to each electric utility if the
total sales of electric energy by such utility for purposes other than resale
exceed 500 million kilowatt-hours per calendar year. The provisions of this
subtitle do not apply to the operations of an electric utility to the extent
that such operations relate to sales of electric energy for purposes of
resale.
SEC. 259. DEFINITIONS.
As used in this subtitle:
(1) The term `aggregate consumer information' means collective data
that relates to a group or category of electric consumers, from which
individual consumer identities and identifying characteristics have been
removed.
(2) The term `consumer information' means information that relates
to the quantity, technical configuration, type, destination, or amount of
use of electric energy delivered to an electric consumer.
(3) The terms `electric consumer', `electric utility', and `State
regulatory authority' have the meanings given such terms in section 3 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle E--Renewable Energy and Rural Construction
Grants
SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) INCENTIVE PAYMENTS- Section 1212(a) of the Energy Policy Act of
1992 (42 U.S.C. 13317(a)) is amended by striking `and which satisfies' and all
that follows through `Secretary shall establish.' and inserting the following:
`. The Secretary shall establish other procedures necessary for efficient
administration of the program. The Secretary shall not establish any criteria
or procedures that have the effect of assigning to proposals a higher or lower
priority for eligibility or allocation of appropriated funds on the basis of
the energy source proposed.'.
(b) QUALIFIED RENEWABLE ENERGY FACILITY- Section 1212(b) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
(1) by striking `a State or any political' and all that follows
through `nonprofit electrical cooperative' and inserting the following: `a
nonprofit electrical cooperative, a public utility described in section 115
of such Code, a State, Commonwealth, territory, or possession of the United
States or the District of Columbia, or a political subdivision thereof, or
an Indian tribal government or subdivision thereof,'; and
(2) by inserting `landfill gas, incremental hydropower, ocean' after
`wind, biomass,'.
(c) ELIGIBILITY WINDOW- Section 1212(c) of the Energy Policy Act of
1992 (42 U.S.C. 13317(c)) is amended by striking `during the 10-fiscal year
period beginning with the first full fiscal year occurring after the enactment
of this section' and inserting `before October 1, 2013'.
(d) PAYMENT PERIOD- Section 1212(d) of the Energy Policy Act of 1992
(42 U.S.C. 13317(d)) is amended by inserting `or in which the Secretary finds
that all necessary Federal and State authorizations have been obtained to
begin construction of the facility' after `eligible for such
payments'.
(e) AMOUNT OF PAYMENT- Section 1212(e)(1) of the Energy Policy Act of
1992 (42 U.S.C. 13317(e)(1)) is amended by inserting `landfill gas,
incremental hydropower, ocean' after `wind, biomass,'.
(f) SUNSET- Section 1212(f) of the Energy Policy Act of 1992 (42
U.S.C. 13317(f)) is amended by striking `the expiration of' and all that
follows through `of this section' and inserting `September 30, 2023'.
(g) INCREMENTAL HYDROPOWER; AUTHORIZATION OF APPROPRIATIONS- Section
1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is further amended by
striking subsection (g) and inserting the following:
`(g) Incremental Hydropower-
`(1) PROGRAMS- Subject to subsection (h)(2), if an incremental
hydropower program meets the requirements of this section, as determined by
the Secretary, the incremental hydropower program shall be eligible to
receive incentive payments under this section.
`(2) DEFINITION OF INCREMENTAL HYDROPOWER- In this subsection, the
term `incremental hydropower' means additional generating capacity achieved
from increased efficiency or additions of new capacity at a hydroelectric
facility in existence on the date of enactment of this paragraph.
`(h) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- Subject to paragraph (2), there are authorized to
be appropriated such sums as may be necessary to carry out this section for
fiscal years 2003 through 2023.
`(2) LIMITATION ON FUNDS USED FOR INCREMENTAL HYDROPOWER PROGRAMS-
Not more than 30 percent of the amounts made available under paragraph (1)
shall be used to carry out programs described in subsection
(g)(2).
`(3) AVAILABILITY OF FUNDS- Funds made available under paragraph (1)
shall remain available until expended.'.
SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) RESOURCE ASSESSMENT- Not later than 3 months after the date of
enactment of this title, and each year thereafter, the Secretary of Energy
shall review the available assessments of renewable energy resources available
within the United States, including solar, wind, biomass, ocean, geothermal,
and hydroelectric energy resources, and undertake new assessments as
necessary, taking into account changes in market conditions, available
technologies and other relevant factors.
(b) CONTENTS OF REPORTS- Not later than 1 year after the date of
enactment of this title, and each year thereafter, the Secretary shall publish
a report based on the assessment under subsection (a). The report shall
contain--
(1) a detailed inventory describing the available amount and
characteristics of the renewable energy resources, and
(2) such other information as the Secretary of Energy believes would
be useful in developing such renewable energy resources, including
descriptions of surrounding terrain, population and load centers, nearby
energy infrastructure, location of energy and water resources, and available
estimates of the costs needed to develop each resource, together with an
identification of any barriers to providing adequate transmission for remote
sources of renewable energy resources to current and emerging markets,
recommendations for removing or addressing such barriers, and ways to
provide access to the grid that do not unfairly disadvantage renewable or
other energy producers.
SEC. 263. FEDERAL PURCHASE REQUIREMENT.
(a) REQUIREMENT- The President shall seek to ensure that, to the
extent economically feasible and technically practicable, of the total amount
of electric energy the Federal Government consumes during any fiscal
year--
(1) not less than 3 percent in fiscal years 2003 through
2004,
(2) not less than 5 percent in fiscal years 2005 through 2009,
and
(3) not less than 7.5 percent in fiscal year 2010 and each fiscal
year thereafter,
shall be renewable energy. The President shall encourage the use of
innovative purchasing practices by Federal agencies.
(b) DEFINITION- For purposes of this section, the term `renewable
energy' means electric energy generated from solar, wind, biomass, geothermal,
fuel cells, municipal solid waste, or additional hydroelectric generation
capacity achieved from increased efficiency or additions of new
capacity.
(c) TRIBAL POWER GENERATION- The President shall seek to ensure that,
to the extent economically feasible and technically practicable, not less than
one-tenth of the amount specified in subsection (a) shall be renewable energy
that is generated by an Indian tribe or by a corporation, partnership, or
business association which is wholly or majority owned, directly or
indirectly, by an Indian tribe. For purposes of this subsection, the term
`Indian tribe' means any Indian tribe, band, nation, or other organized group
or community, including any Alaskan Native village or regional or village
corporation as defined in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for
the special programs and services provided by the United States to Indians
because of their status as Indians.
(d) BIENNIAL REPORT- In 2004 and every 2 years thereafter, the
Secretary of Energy shall report to the Committee on Energy and Natural
Resources of the Senate and the appropriate committees of the House of
Representatives on the progress of the Federal Government in meeting the goals
established by this section.
SEC. 264. RENEWABLE PORTFOLIO STANDARD.
Title VI of the Public Utility Regulatory Policies Act of 1978 is
amended by adding at the end the following:
`SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) MINIMUM RENEWABLE GENERATION REQUIREMENT- For each calendar year
beginning in calendar year 2005, each retail electric supplier shall submit to
the Secretary, not later than April 1 of the following calendar year,
renewable energy credits in an amount equal to the required annual percentage
specified in subsection (b).
`(b) REQUIRED ANNUAL PERCENTAGE- (1) For calendar years 2005 through
2020, the required annual percentage of the retail electric supplier's base
amount that shall be generated from renewable energy resources shall be the
percentage specified in the following table:
Required annual
`Calendar Years
percentage
--1.0
--2.2
--3.4
--4.6
--5.8
--7.0
--8.5
--10.0.
`(2) Not later than January 1, 2015, the Secretary may, by rule,
establish required annual percentages in amounts not less than 10.0 for
calendar years 2020 through 2030.
`(c) SUBMISSION OF CREDITS- (1) A retail electric supplier may satisfy
the requirements of subsection (a) through the submission of renewable energy
credits--
`(A) issued to the retail electric supplier under subsection
(d);
`(B) obtained by purchase or exchange under subsection (e);
or
`(C) borrowed under subsection (f).
`(2) A credit may be counted toward compliance with subsection (a)
only once.
`(d) ISSUANCE OF CREDITS- (1) The Secretary shall establish, not later
than 1 year after the date of enactment of this section, a program to issue,
monitor the sale or exchange of, and track renewable energy credits.
`(2) Under the program, an entity that generates electric energy
through the use of a renewable energy resource may apply to the Secretary for
the issuance of renewable energy credits. The application shall
indicate--
`(A) the type of renewable energy resource used to produce the
electricity,
`(B) the location where the electric energy was produced,
and
`(C) any other information the Secretary determines
appropriate.
`(3)(A) Except as provided in paragraphs (B), (C), and (D), the
Secretary shall issue to an entity one renewable energy credit for each
kilowatt-hour of electric energy the entity generates from the date of
enactment of this section and in each subsequent calendar year through the use
of a renewable energy resource at an eligible facility.
`(B) For incremental hydropower the credits shall be calculated based
on the expected increase in average annual generation resulting from the
efficiency improvements or capacity additions. The number of credits shall be
calculated using the same water flow information used to determine a historic
average annual generation baseline for the hydroelectric facility and
certified by the Secretary or the Federal Energy Regulatory Commission. The
calculation of the credits for incremental hydropower shall not be based on
any operational changes at the hydroelectric facility not directly associated
with the efficiency improvements or capacity additions.
`(C) The Secretary shall issue two renewable energy credits for each
kilowatt-hour of electric energy generated and supplied to the grid in that
calendar year through the use of a renewable energy resource at an eligible
facility located on Indian land. For purposes of this paragraph, renewable
energy generated by biomass cofired with other fuels is eligible for two
credits only if the biomass was grown on the land eligible under this
paragraph.
`(D) For renewable energy resources produced from a generation offset,
the Secretary shall issue two renewable energy credits for each kilowatt-hour
generated.
`(E) To be eligible for a renewable energy credit, the unit of
electric energy generated through the use of a renewable energy resource may
be sold or may be used by the generator. If both a renewable energy resource
and a nonrenewable energy resource are used to generate the electric energy,
the Secretary shall issue credits based on the proportion of the renewable
energy resource used. The Secretary shall identify renewable energy credits by
type and date of generation.
`(5) When a generator sells electric energy generated through the use
of a renewable energy resource to a retail electric supplier under a contract
subject to section 210 of this Act, the retail electric supplier is treated as
the generator of the electric energy for the purposes of this section for the
duration of the contract.
`(6) The Secretary may issue credits for existing facility offsets to
be applied against a retail electric supplier's own required annual
percentage. The credits are not tradeable and may only be used in the calendar
year generation actually occurs.
`(e) CREDIT TRADING- A renewable energy credit may be sold or
exchanged by the entity to whom issued or by any other entity who acquires the
credit. A renewable energy credit for any year that is not used to satisfy the
minimum renewable generation requirement of subsection (a) for that year may
be carried forward for use within the next 4 years.
`(f) CREDIT BORROWING- At any time before the end of calendar year
2005, a retail electric supplier that has reason to believe it will not have
sufficient renewable energy credits to comply with subsection (a)
may--
`(1) submit a plan to the Secretary demonstrating that the retail
electric supplier will earn sufficient credits within the next 3 calendar
years which, when taken into account, will enable the retail electric
supplier's to meet the requirements of subsection (a) for calendar year 2005
and the subsequent calendar years involved; and
`(2) upon the approval of the plan by the Secretary, apply credits
that the plan demonstrates will be earned within the next 3 calendar years
to meet the requirements of subsection (a) for each calendar year
involved.
`(g) CREDIT COST CAP- The Secretary shall offer renewable energy
credits for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of
the average market value of credits for the applicable compliance period. On
January 1 of each year following calendar year 2005, the Secretary shall
adjust for inflation the price charged per credit for such calendar year,
based on the Gross Domestic Product Implicit Price Deflator.
`(h) ENFORCEMENT- The Secretary may bring an action in the appropriate
United States district court to impose a civil penalty on a retail electric
supplier that does not comply with subsection (a), unless the retail electric
supplier was unable to comply with subsection (a) for reasons outside of the
supplier's reasonable control (including weather-related damage, mechanical
failure, lack of transmission capacity or availability, strikes, lockouts,
actions of a governmental authority). A retail electric supplier who does not
submit the required number of renewable energy credits under subsection (a)
shall be subject to a civil penalty of not more than the greater of 3 cents or
200 percent of the average market value of credits for the compliance period
for each renewable energy credit not submitted.
`(i) INFORMATION COLLECTION- The Secretary may collect the information
necessary to verify and audit--
`(1) the annual electric energy generation and renewable energy
generation of any entity applying for renewable energy credits under this
section,
`(2) the validity of renewable energy credits submitted by a retail
electric supplier to the Secretary, and
`(3) the quantity of electricity sales of all retail electric
suppliers.
`(j) ENVIRONMENTAL SAVINGS CLAUSE- Incremental hydropower shall be
subject to all applicable environmental laws and licensing and regulatory
requirements.
`(k) STATE SAVINGS CLAUSE- This section does not preclude a State from
requiring additional renewable energy generation in that State, or from
specifying technology mix.
`(l) DEFINITIONS- For purposes of this section:
`(1) BIOMASS- The term `biomass' means any organic material that is
available on a renewable or recurring basis, including dedicated energy
crops, trees grown for energy production, wood waste and wood residues,
plants (including aquatic plants, grasses, and agricultural crops),
residues, fibers, animal wastes and other organic waste materials, and fats
and oils, except that with respect to material removed from National Forest
System lands the term includes only organic material from--
`(A) thinnings from trees that are less than 12 inches in
diameter;
`(2) ELIGIBLE FACILITY- The term `eligible facility'
means--
`(A) a facility for the generation of electric energy from a
renewable energy resource that is placed in service on or after the date
of enactment of this section; or
`(B) a repowering or cofiring increment that is placed in service
on or after the date of enactment of this section at a facility for the
generation of electric energy from a renewable energy resource that was
placed in service before that date.
`(3) ELIGIBLE RENEWABLE ENERGY RESOURCE- The term `renewable energy
resource' means solar, wind, ocean, or geothermal energy, biomass (excluding
solid waste and paper that is commonly recycled), landfill gas, a generation
offset, or incremental hydropower.
`(4) GENERATION OFFSET- The term `generation offset' means reduced
electricity usage metered at a site where a customer consumes energy from a
renewable energy technology.
`(5) EXISTING FACILITY OFFSET- The term `existing facility offset'
means renewable energy generated from an existing facility, not classified
as an eligible facility, that is owned or under contract to a retail
electric supplier on the date of enactment of this section.
`(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means
additional generation that is achieved from increased efficiency or
additions of capacity after the date of enactment of this section at a
hydroelectric dam that was placed in service before that date.
`(7) INDIAN LAND- The term `Indian land' means--
`(A) any land within the limits of any Indian reservation, pueblo,
or rancheria,
`(B) any land not within the limits of any Indian reservation,
pueblo, or rancheria title to which was on the date of enactment of this
paragraph either held by the United States for the benefit of any Indian
tribe or individual or held by any Indian tribe or individual subject to
restriction by the United States against alienation,
`(C) any dependent Indian community, and
`(D) any land conveyed to any Alaska Native corporation under the
Alaska Native Claims Settlement Act.
`(8) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe,
band, nation, or other organized group or community, including any Alaskan
Native village or regional or village corporation as defined in or
established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C.
1601 et seq.), which is recognized as eligible for the special programs and
services provided by the United States to Indians because of their status as
Indians.
`(9) RENEWABLE ENERGY- The term `renewable energy' means electric
energy generated by a renewable energy resource.
`(10) RENEWABLE ENERGY RESOURCE- The term `renewable energy
resource' means solar, wind, ocean, or geothermal energy, biomass (including
municipal solid waste), landfill gas, a generation offset, or incremental
hydropower.
`(11) REPOWERING OR COFIRING INCREMENT- The term `repowering or
cofiring increment' means the additional generation from a modification that
is placed in service on or after the date of enactment of this section to
expand electricity production at a facility used to generate electric energy
from a renewable energy resource or to cofire biomass that was placed in
service before the date of enactment of this section, or the additional
generation above the average generation in the 3 years preceding the date of
enactment of this section, to expand electricity production at a facility
used to generate electric energy from a renewable energy resource or to
cofire biomass that was placed in service before the date of enactment of
this section.
`(12) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier'
means a person that sells electric energy to electric consumers and sold not
less than 1,000,000 megawatt-hours of electric energy to electric consumers
for purposes other than resale during the preceding calendar year; except
that such term does not include the United States, a State or any political
subdivision of a State, or any agency, authority, or instrumentality of any
one or more of the foregoing, or a rural electric cooperative.
`(13) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail
electric supplier's base amount' means the total amount of electric energy
sold by the retail electric supplier to electric customers during the most
recent calendar year for which information is available, excluding electric
energy generated by--
`(A) an eligible renewable energy resource;
`(B) municipal solid waste; or
`(C) a hydroelectric facility.
`(m) SUNSET- This section expires December 31, 2030.'.
SEC. 265. RENEWABLE ENERGY ON FEDERAL LAND.
(a) COST-SHARE DEMONSTRATION PROGRAM- Within 12 months after the date
of enactment of this section, the Secretaries of the Interior, Agriculture,
and Energy shall develop guidelines for a cost-share demonstration program for
the development of wind and solar energy facilities on Federal land.
(b) DEFINITION OF FEDERAL LAND- As used in this section, the term
`Federal land' means land owned by the United States that is subject to the
operation of the mineral leasing laws; and is either--
(1) public land as defined in section 103(e) of the Federal Land
Policy and Management Act of 1976 (42 U.S.C. 1702(e)); or
(2) a unit of the National Forest System as that term is used in
section 11(a) of the Forest and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1609(a)).
(c) RIGHTS-OF-WAY- The demonstration program shall provide for the
issuance of rights-of-way pursuant to the provisions of title V of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.) by the
Secretary of the Interior with respect to Federal land under the jurisdiction
of the Department of the Interior, and by the Secretary of Agriculture with
respect to Federal lands under the jurisdiction of the Department of
Agriculture.
(d) AVAILABLE SITES- For purposes of this demonstration program, the
issuance of rights-of-way shall be limited to areas--
(1) of high energy potential for wind or solar
development;
(2) that have been identified by the wind or solar energy industry,
through a process of nomination, application, or otherwise, as being of
particular interest to one or both industries;
(3) that are not located within roadless areas;
(4) where operation of wind or solar facilities would be compatible
with the scenic, recreational, environmental, cultural, or historic values
of the Federal land, and would not require the construction of new roads for
the siting of lines or other transmission facilities; and
(5) where issuance of the right-of-way is consistent with the land
and resource management plans of the relevant land management
agencies.
(e) COST-SHARE PAYMENTS BY DOE- The Secretary of Energy, in
cooperation with the Secretary of the Interior with respect to Federal land
under the jurisdiction of the Department of the Interior, and the Secretary of
Agriculture with respect to Federal land under the jurisdiction of the
Department of Agriculture, shall determine if the portion of a project on
Federal land is eligible for financial assistance pursuant to this section.
Only those projects that are consistent with the requirements of this section
and further the purposes of this section shall be eligible. In the event a
project is selected for financial assistance, the Secretary of Energy shall
provide no more than 15 percent of the costs of the project on the Federal
land, and the remainder of the costs shall be paid by non-Federal
sources.
(f) REVISION OF LAND USE PLANS- The Secretary of the Interior shall
consider development of wind and solar energy, as appropriate, in revisions of
land use plans under section 202 of the Federal Land Policy and Management Act
of 1976 (42 U.S.C. 1712); and the Secretary of Agriculture shall consider
development of wind and solar energy, as appropriate, in revisions of land and
resource management plans under section 5 of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). Nothing in this
subsection shall preclude the issuance of a right-of-way for the development
of a wind or solar energy project prior to the revision of a land use plan by
the appropriate land management agency.
(g) REPORT TO CONGRESS- Within 24 months after the date of enactment
of this section, the Secretary of the Interior shall develop and report to
Congress recommendations on any statutory or regulatory changes the Secretary
believes would assist in the development of renewable energy on Federal land.
The report shall include--
(1) a five-year plan developed by the Secretary of the Interior, in
cooperation with the Secretary of Agriculture, for encouraging the
development of wind and solar energy on Federal land in an environmentally
sound manner; and
(A) whether the use of rights-of-ways is the best means of
authorizing use of Federal land for the development of wind and solar
energy, or whether such resources could be better developed through a
leasing system, or other method;
(B) the desirability of grants, loans, tax credits or other
provisions to promote wind and solar energy development on Federal land;
and
(C) any problems, including environmental concerns, which the
Secretary of the Interior or the Secretary of Agriculture have encountered
in managing wind or solar energy projects on Federal land, or believe are
likely to arise in relation to the development of wind or solar energy on
Federal land;
(3) a list, developed in consultation with the Secretaries of Energy
and Defense, of lands under the jurisdiction of the Departments of Energy
and Defense that would be suitable for development for wind or solar energy,
and recommended statutory and regulatory mechanisms for such
development.
(h) NATIONAL ACADEMY OF SCIENCES STUDY- Within 90 days after the
enactment of this Act, the Secretary of the Interior shall contract with the
National Academy of Sciences to study the potential for the development of
wind, solar, and ocean energy on the Outer Continental Shelf; assess existing
Federal authorities for the development of such resources; and recommend
statutory and regulatory mechanisms for such development. The results of the
study shall be transmitted to Congress within 24 months after the enactment of
this Act.
Subtitle F--General Provisions
SEC. 271. CHANGE 3 CENTS TO 1.5 CENTS.
Not withstanding any other provision in this Act, `3 cents' shall be
considered by law to be `1.5 cents' in any place `3 cents' appears in title II
of this Act.
SEC. 272. BONNEVILLE POWER ADMINISTRATION BONDS.
Section 13 of the Federal Columbia River Transmission System Act (16
U.S.C. 838k) is amended--
(1) by striking the section heading and all that follows through
`(a) The Administrator' and inserting the following:
`SEC. 13. BONNEVILLE POWER ADMINISTRATION BONDS.
`(1) IN GENERAL- The Administrator'; and
(2) by adding at the end the following:
`(2) ADDITIONAL BORROWING AUTHORITY- In addition to the borrowing
authority of the Administrator authorized under paragraph (1) or any other
provision of law, an additional $1,300,000,000 is made available, to remain
outstanding at any one time--
`(A) to provide funds to assist in financing the construction,
acquisition, and replacement of the transmission system of the Bonneville
Power Administration; and
`(B) to implement the authorities of the Administrator under the
Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C.
839 et seq.).'.
TITLE III--HYDROELECTRIC RELICENSING
SEC. 301. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) ALTERNATIVE MANDATORY CONDITIONS- Section 4 of the Federal Power
Act (16 U.S.C. 797) is amended by adding at the end the following:
`(h)(1) Whenever any person applies for a license for any project
works within any reservation of the United States under subsection (e), and
the Secretary of the department under whose supervision such reservation falls
(in this subsection referred to as the `Secretary') shall deem a condition to
such license to be necessary under the first proviso of such section, the
license applicant may propose an alternative condition.
`(2) Notwithstanding the first proviso of subsection (e), the
Secretary of the department under whose supervision the reservation falls
shall accept the proposed alternative condition referred to in paragraph (1),
and the Commission shall include in the license such alternative condition, if
the Secretary of the appropriate department determines, based on substantial
evidence provided by the license applicant, that the alternative
condition--
`(A) provides for the adequate protection and utilization of the
reservation; and
`(i) cost less to implement, or
`(ii) result in improved operation of the project works for
electricity production as compared to the condition initially deemed
necessary by the Secretary.
`(3) The Secretary shall submit into the public record of the
Commission proceeding with any condition under subsection (e) or alternative
condition it accepts under this subsection a written statement explaining the
basis for such condition, and reason for not accepting any alternative
condition under this subsection, including the effects of the condition
accepted and alternatives not accepted on energy supply, distribution, cost,
and use, air quality, flood control, navigation, and drinking, irrigation, and
recreation water supply, based on such information as may be available to the
Secretary, including information voluntarily provided in a timely manner by
the applicant and others.
`(4) Nothing in this subsection shall prohibit other interested
parties from proposing alternative conditions.'.
(b) ALTERNATIVE FISHWAYS- Section 18 of the Federal Power Act (16
U.S.C. 811) is amended by--
(1) inserting `(a)' before the first sentence; and
(2) adding at the end the following:
`(b)(1) Whenever the Secretary of the Interior or the Secretary of
Commerce prescribes a fishway under this section, the license applicant or the
licensee may propose an alternative to such prescription to construct,
maintain, or operate a fishway.
`(2) Notwithstanding subsection (a), the Secretary of the Interior or
the Secretary of Commerce, as appropriate, shall accept and prescribe, and the
Commission shall require, the proposed alternative referred to in paragraph
(1), if the Secretary of the appropriate department determines, based on
substantial evidence provided by the licensee, that the alternative--
`(A) will be no less protective of the fish resources than the
fishway initially prescribed by the Secretary; and
`(i) cost less to implement, or
`(ii) result in improved operation of the project works for
electricity production as compared to the fishway initially prescribed by
the Secretary.
`(3) The Secretary shall submit into the public record of the
Commission proceeding with any prescription under subsection (a) or
alternative prescription it accepts under this subsection a written statement
explaining the basis for such prescription, and reason for not accepting any
alternative prescription under this subsection, including the effects of the
prescription accepted or alternative not accepted on energy supply,
distribution, cost, and use, air quality, flood control, navigation, and
drinking, irrigation, and recreation water supply, based on such information
as may be available to the Secretary, including information voluntarily
provided in a timely manner by the applicant and others.
`(4) Nothing in this subsection shall prohibit other interested
parties from proposing alternative prescriptions.'.
(c) TIME OF FILING APPLICATION- Section 15(c)(1) of the Federal Power
Act (16 U.S.C. 808(c)(1)) is amended by striking the first sentence and
inserting the following:
`(1) Each application for a new license pursuant to this section
shall be filed with the Commission--
`(A) at least 24 months before the expiration of the term of the
existing license in the case of licenses that expire prior to 2008;
and
`(B) at least 36 months before the expiration of the term of the
existing license in the case of licenses that expire in 2008 or any year
thereafter.'.
TITLE IV--INDIAN ENERGY
SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501-3506) is
amended by adding after section 2606 the following:
`SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
`(a) DEFINITIONS- For purposes of this section--
`(1) the term `Director' means the Director of the Office of Indian
Energy Policy and Programs established by section 217 of the Department of
Energy Organization Act, and
`(2) the term `Indian land' means--
`(A) any land within the limits of an Indian reservation, pueblo,
or rancheria;
`(B) any land not within the limits of an Indian reservation,
pueblo, or rancheria whose title is held--
`(i) in trust by the United States for the benefit of an Indian
tribe,
`(ii) by an Indian tribe subject to restriction by the United
States against alienation, or
`(iii) by a dependent Indian community; and
`(C) land conveyed to an Alaska Native Corporation under the
Alaska Native Claims Settlement Act.
`(b) INDIAN ENERGY EDUCATION PLANNING AND MANAGEMENT ASSISTANCE- (1)
The Director shall establish programs within the Office of Indian Energy
Policy and Programs to assist Indian tribes in meeting their energy education,
research and development, planning, and management needs.
`(2) The Director may make grants, on a competitive basis, to an
Indian tribe for--
`(A) renewable energy, energy efficiency, and conservation
programs;
`(B) studies and other activities supporting tribal acquisition of
energy supplies, services, and facilities;
`(C) planning, constructing, developing, operating, maintaining, and
improving tribal electrical generation, transmission, and distribution
facilities; and
`(D) developing, constructing, and interconnecting electric power
transmission facilities with transmission facilities owned and operated by a
Federal power marketing agency or an electric utility that provides open
access transmission service.
`(3) The Director may develop, in consultation with Indian tribes, a
formula for making grants under this section. The formula may take into
account the following--
`(A) the total number of acres of Indian land owned by an Indian
tribe;
`(B) the total number of households on the Indian tribe's Indian
land;
`(C) the total number of households on the Indian tribe's Indian
land that have no electricity service or are under-served; and
`(D) financial or other assets available to the Indian tribe from
any source.
`(4) In making a grant under paragraph (2), the Director shall give
priority to an application received from an Indian tribe that is not served or
is served inadequately by an electric utility, as that term is defined in
section 3(4) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2602(4)), or by a person, State agency, or any other non-Federal entity that
owns or operates a local distribution facility used for the sale of electric
energy to an electric consumer.
`(5) There are authorized to be appropriated to the Department of
Energy such sums as may be necessary to carry out the purposes of this
section.
`(6) The Secretary is authorized to promulgate such regulations as the
Secretary determines to be necessary to carry out the provisions of this
subsection.
`(c) LOAN GUARANTEE PROGRAM-
`(1) AUTHORITY- The Secretary may guarantee not more than 90 percent
of the unpaid principal and interest due on any loan made to any Indian
tribe for energy development, including the planning, development,
construction, and maintenance of electrical generation plants, and for
transmission and delivery mechanisms for electricity produced on Indian
land. A loan guaranteed under this subsection shall be made by--
`(A) a financial institution subject to the examination of the
Secretary; or
`(B) an Indian tribe, from funds of the Indian tribe, to another
Indian tribe.
`(2) AVAILABILITY OF APPROPRIATIONS- Amounts appropriated to cover
the cost of loan guarantees shall be available without fiscal year
limitation to the Secretary to fulfill obligations arising under this
subsection.
`(3) AUTHORIZATION OF APPROPRIATIONS- (A) There are authorized to be
appropriated to the Secretary such sums as may be necessary to cover the
cost of loan guarantees, as defined by section 502(5) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)).
`(B) There are authorized to be appropriated to the Secretary such
sums as may be necessary to cover the administrative expenses related to
carrying out the loan guarantee program established by this
subsection.
`(4) LIMITATION ON AMOUNT- The aggregate outstanding amount
guaranteed by the Secretary of Energy at any one time under this subsection
shall not exceed $2,000,000,000.
`(5) REGULATIONS- The Secretary is authorized to promulgate such
regulations as the Secretary determines to be necessary to carry out the
provisions of this subsection.
`(d) INDIAN ENERGY PREFERENCE- (1) An agency or department of the
United States Government may give, in the purchase of electricity, oil, gas,
coal, or other energy product or by-product, preference in such purchase to an
energy and resource production enterprise, partnership, corporation, or other
type of business organization majority or wholly owned and controlled by a
tribal government.
`(2) In implementing this subsection, an agency or department shall
pay no more than the prevailing market price for the energy product or
by-product and shall obtain no less than existing market terms and
conditions.
`(e) EFFECT ON OTHER LAWS- This section does not--
`(1) limit the discretion vested in an Administrator of a Federal
power marketing agency to market and allocate Federal power, or
`(2) alter Federal laws under which a Federal power marketing agency
markets, allocates, or purchases power.'.
SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
Title II of the Department of Energy Organization Act is amended by
adding at the end the following:
`OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
`SEC. 217. (a) There is established within the Department an Office of
Indian Energy Policy and Programs. This Office shall be headed by a Director,
who shall be appointed by the Secretary and compensated at the rate equal to
that of level IV of the Executive Schedule under section 5315 of title 5,
United States Code.
`(b) The Director shall provide, direct, foster, coordinate, and
implement energy planning, education, management, conservation, and delivery
programs of the Department that--
`(1) promote tribal energy efficiency and utilization;
`(2) modernize and develop, for the benefit of Indian tribes, tribal
energy and economic infrastructure related to natural resource development
and electrification;
`(3) preserve and promote tribal sovereignty and self determination
related to energy matters and energy deregulation;
`(4) lower or stabilize energy costs; and
`(5) electrify tribal members' homes and tribal lands.
`(c) The Director shall carry out the duties assigned the Secretary or
the Director under title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.).'.
SEC. 403. CONFORMING AMENDMENTS.
(a) AUTHORIZATION OF APPROPRIATIONS- Section 2603(c) of the Energy
Policy Act of 1992 (25 U.S.C. 3503(c)) is amended to read as follows:
`(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to carry out the purposes of this
section.'.
(b) TABLE OF CONTENTS- The table of contents of the Department of
Energy Act is amended by inserting after the item relating to section 216 the
following new item:
`Sec. 217. Office of Indian Energy Policy and Programs.'.
(c) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code,
is amended by inserting `Director, Office of Indian Energy Policy and
Programs, Department of Energy.' after `Inspector General, Department of
Energy.'.
SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.
(a) DEFINITIONS- For purposes of this section:
(1) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe,
band, nation, or other organized group or community, which is recognized as
eligible for the special programs and services provided by the United States
to Indians because of their status as Indians, except that such term does
not include any Regional Corporation as defined in section 3(g) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)).
(2) INTERESTED PARTY- The term `interested party' means a person
whose interests could be adversely affected by the decision of an Indian
tribe to grant a lease or right-of-way pursuant to this section.
(3) PETITION- The term `petition' means a written request submitted
to the Secretary for the review of an action (or inaction) of the Indian
tribe that is claimed to be in violation of the approved tribal
regulations.
(4) RESERVATION- The term `reservation' means--
(A) with respect to a reservation in a State other than Oklahoma,
all land that has been set aside or that has been acknowledged as having
been set aside by the United States for the use of an Indian tribe, the
exterior boundaries of which are more particularly defined in a final
tribal treaty, agreement, executive order, Federal statute, secretarial
order, or judicial determination;
(B) with respect to a reservation in the State of Oklahoma, all
land that is--
(i) within the jurisdictional area of an Indian tribe,
and
(ii) within the boundaries of the last reservation of such tribe
that was established by treaty, executive order, or secretarial
order.
(5) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
(6) TRIBAL LANDS- The term `tribal lands' means any tribal trust
lands, or other lands owned by an Indian tribe that are within such tribe's
reservation.
(b) LEASES INVOLVING GENERATION, TRANSMISSION, DISTRIBUTION OR ENERGY
PROCESSING FACILITIES- An Indian tribe may grant a lease of tribal land for
electric generation, transmission, or distribution facilities, or facilities
to process or refine renewable or nonrenewable energy resources developed on
tribal lands, and such leases shall not require the approval of the Secretary
if the lease is executed under tribal regulations approved by the Secretary
under this subsection and the term of the lease does not exceed 30
years.
(c) RIGHTS-OF-WAY FOR ELECTRIC GENERATION, TRANSMISSION, DISTRIBUTION
OR ENERGY PROCESSING FACILITIES- An Indian tribe may grant a right-of-way over
tribal lands for a pipeline or an electric transmission or distribution line
without separate approval by the Secretary, if--
(1) the right-of-way is executed under and complies with tribal
regulations approved by the Secretary and the term of the right-of-way does
not exceed 30 years; and
(2) the pipeline or electric transmission or distribution line
serves--
(A) an electric generation, transmission or distribution facility
located on tribal land, or
(B) a facility located on tribal land that processes or refines
renewable or nonrenewable energy resources developed on tribal
lands.
(d) RENEWALS- Leases or rights-of-way entered into under this
subsection may be renewed at the discretion of the Indian tribe in accordance
with the requirements of this section.
(e) TRIBAL REGULATION REQUIREMENTS- (1) The Secretary shall have the
authority to approve or disapprove tribal regulations required under this
subsection. The Secretary shall approve such tribal regulations if they are
comprehensive in nature, including provisions that address--
(A) securing necessary information from the lessee or right-of-way
applicant;
(B) term of the conveyance;
(C) amendments and renewals;
(D) consideration for the lease or right-of-way;
(E) technical or other relevant requirements;
(F) requirements for environmental review as set forth in paragraph
(3);
(G) requirements for complying with all applicable environmental
laws; and
(H) final approval authority.
(2) No lease or right-of-way shall be valid unless authorized in
compliance with the approved tribal regulations.
(3) An Indian tribe, as a condition of securing Secretarial approval
as contemplated in paragraph (1), must establish an environmental review
process that includes the following--
(A) an identification and evaluation of all significant
environmental impacts of the proposed action as compared to a no action
alternative;
(B) identification of proposed mitigation;
(C) a process for ensuring that the public is informed of and has an
opportunity to comment on the proposed action prior to tribal approval of
the lease or right-of-way; and
(D) sufficient administrative support and technical capability to
carry out the environmental review process.
(4) The Secretary shall review and approve or disapprove the
regulations of the Indian tribe within 180 days of the submission of such
regulations to the Secretary. Any disapproval of such regulations by the
Secretary shall be accompanied by written documentation that sets forth the
basis for the disapproval. The 180-day period may be extended by the Secretary
after consultation with the Indian tribe.
(5) If the Indian tribe executes a lease or right-of-way pursuant to
tribal regulations required under this subsection, the Indian tribe shall
provide the Secretary with--
(A) a copy of the lease or right-of-way document and all amendments
and renewals thereto; and
(B) in the case of regulations or a lease or right-of-way that
permits payment to be made directly to the Indian tribe, documentation of
the payments sufficient to enable the Secretary to discharge the trust
responsibility of the United States as appropriate under existing
law.
(6) The United States shall not be liable for losses sustained by any
party to a lease executed pursuant to tribal regulations under this
subsection, including the Indian tribe.
(7)(A) An interested party may, after exhaustion of tribal remedies,
submit, in a timely manner, a petition to the Secretary to review the
compliance of the Indian tribe with any tribal regulations approved under this
subsection. If upon such review, the Secretary determines that the regulations
were violated, the Secretary may take such action as may be necessary to
remedy the violation, including rescinding or holding the lease or
right-of-way in abeyance until the violation is cured. The Secretary may also
rescind the approval of the tribal regulations and reassume the responsibility
for approval of leases or rights-of-way associated with the facilities
addressed in this section.
(B) If the Secretary seeks to remedy a violation described in
subparagraph (A), the Secretary shall--
(i) make a written determination with respect to the regulations
that have been violated;
(ii) provide the Indian tribe with a written notice of the alleged
violation together with such written determination; and
(iii) prior to the exercise of any remedy or the rescission of the
approval of the regulations involved and reassumption of the lease or
right-of-way approval responsibility, provide the Indian tribe with a
hearing and a reasonable opportunity to cure the alleged
violation.
(C) The tribe shall retain all rights to appeal as provided by
regulations promulgated by the Secretary.
(f) AGREEMENTS- (1) Agreements between an Indian tribe and a business
entity that are directly associated with the development of electric
generation, transmission or distribution facilities, or facilities to process
or refine renewable or nonrenewable energy resources developed on tribal
lands, shall not separately require the approval of the Secretary pursuant to
section 18 of title 25, United States Code, so long as the activity that is
the subject of the agreement has been the subject of an environmental review
process pursuant to subsection (e) of this section.
(2) The United States shall not be liable for any losses or damages
sustained by any party, including the Indian tribe, that are associated with
an agreement entered into under this subsection.
(g) DISCLAIMER- Nothing in this section is intended to modify or
otherwise affect the applicability of any provision of the Indian Mineral
Leasing Act of 1938 (25 U.S.C. 396a-396g); Indian Mineral Development Act of
1982 (25 U.S.C. 2101-2108); Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1201-1328); any amendments thereto; or any other laws not
specifically addressed in this section.
SEC. 405. INDIAN MINERAL DEVELOPMENT ACT REVIEW.
(a) IN GENERAL- The Secretary of the Interior shall conduct a review
of the activities that have been conducted by the governments of Indian tribes
under the authority of the Indian Mineral Development Act of 1982 (25 U.S.C.
2101 et seq.).
(b) REPORT- Not later than 1 year after the date of the enactment of
this Act, the Secretary shall transmit to the Committee on Resources of the
House of Representatives and the Committee on Indian Affairs and the Committee
on Energy and Natural Resources of the Senate a report containing--
(1) the results of the review;
(2) recommendations designed to help ensure that Indian tribes have
the opportunity to develop their nonrenewable energy resources;
and
(3) an analysis of the barriers to the development of energy
resources on Indian land, including Federal policies and regulations, and
make recommendations regarding the removal of those barriers.
(c) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations as
provided in this subsection.
SEC. 406. RENEWABLE ENERGY STUDY.
(a) IN GENERAL- Not later than 2 years after the date of the enactment
of this Act, and once every 2 years thereafter, the Secretary of Energy shall
transmit to the Committees on Energy and Commerce and Resources of the House
of Representatives and the Committees on Energy and Natural Resources and
Indian Affairs of the Senate a report on energy consumption and renewable
energy development potential on Indian land. The report shall identify
barriers to the development of renewable energy by Indian tribes, including
Federal policies and regulations, and make recommendations regarding the
removal of such barriers.
(b) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations as
provided in this section.
SEC. 407. FEDERAL POWER MARKETING ADMINISTRATIONS.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501) (as
amended by section 201) is amended by adding at the end the following:
`SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.
`(a) DEFINITION OF ADMINISTRATOR- In this section, the term
`Administrator' means--
`(1) the Administrator of the Bonneville Power Administration;
or
`(2) the Administrator of the Western Area Power
Administration.
`(b) ASSISTANCE FOR TRANSMISSION STUDIES- (1) Each Administrator may
provide technical assistance to Indian tribes seeking to use the high-voltage
transmission system for delivery of electric power. The costs of such
technical assistance shall be funded--
`(A) by the Administrator using non-reimbursable funds appropriated
for this purpose, or
`(B) by the Indian tribe.
`(2) PRIORITY FOR ASSISTANCE FOR TRANSMISSION STUDIES- In providing
discretionary assistance to Indian tribes under paragraph (1), each
Administrator shall give priority in funding to Indian tribes that have
limited financial capability to conduct such studies.
`(c) POWER ALLOCATION STUDY- (1) Not later than 2 years after the date
of enactment of this Act, the Secretary of Energy shall transmit to the
Committees on Energy and Commerce and Resources of the House of
Representatives and the Committees on Energy and Natural Resources and Indian
Affairs of the Senate a report on Indian tribes' utilization of Federal power
allocations of the Western Area Power Administration, or power sold by the
Southwestern Power Administration, and the Bonneville Power Administration to
or for the benefit of Indian tribes in their service areas. The report shall
identify--
`(A) the amount of power allocated to tribes by the Western Area
Power Administration, and how the benefit of that power is utilized by the
tribes;
`(B) the amount of power sold to tribes by other Power Marketing
Administrations; and
`(C) existing barriers that impede tribal access to and utilization
of Federal power, and opportunities to remove such barriers and improve the
ability of the Power Marketing Administration to facilitate the utilization
of Federal power by Indian tribes.
`(2) The Power Marketing Administrations shall consult with Indian
tribes on a government-to-government basis in developing the report provided
in this section.
`(d) AUTHORIZATION FOR APPROPRIATION- There are authorized to be
appropriated to the Secretary of Energy such sums as may be necessary to carry
out the purposes of this section.'.
SEC. 408. FEASIBILITY STUDY OF COMBINED WIND AND HYDROPOWER
DEMONSTRATION PROJECT.
(a) STUDY- The Secretary of Energy, in coordination with the Secretary
of the Army and the Secretary of the Interior, shall conduct a study of the
cost and feasibility of developing a demonstration project that would use wind
energy generated by Indian tribes and hydropower generated by the Army Corps
of Engineers on the Missouri River to supply firming power to the Western Area
Power Administration.
(b) SCOPE OF STUDY- The study shall--
(1) determine the feasibility of the blending of wind energy and
hydropower generated from the Missouri River dams operated by the Army Corps
of Engineers;
(2) review historical purchase requirements and projected purchase
requirements for firming and the patterns of availability and use of firming
energy;
(3) assess the wind energy resource potential on tribal lands and
projected cost savings through a blend of wind and hydropower over a
thirty-year period;
(4) include a preliminary interconnection study and a determination
of resource adequacy of the Upper Great Plains Region of the Western Area
Power Administration;
(5) determine seasonal capacity needs and associated transmission
upgrades for integration of tribal wind generation; and
(6) include an independent tribal engineer as a study team
member.
(c) REPORT- The Secretary of Energy and Secretary of the Army shall
submit a report to Congress not later than 1 year after the date of enactment
of this title. The Secretaries shall include in the report--
(1) an analysis of the potential energy cost savings to the
customers of the Western Area Power Administration through the blend of wind
and hydropower;
(2) an evaluation of whether a combined wind and hydropower system
can reduce reservoir fluctuation, enhance efficient and reliable energy
production and provide Missouri River management flexibility;
(3) recommendations for a demonstration project which the Western
Area Power Administration could carry out in partnership with an Indian
tribal government or tribal government energy consortium to demonstrate the
feasibility and potential of using wind energy produced on Indian lands to
supply firming energy to the Western Area Power Administration or other
Federal power marketing agency; and
(4) an identification of the economic and environmental benefits to
be realized through such a Federal-tribal partnership and identification of
how such a partnership could contribute to the energy security of the United
States.
(d) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations
provided in this section.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated $500,000 to carry out this section, which shall remain available
until expended. All costs incurred by the Western Area Power Administration
associated with performing the tasks required under this section shall be
nonreimbursable.
TITLE V--NUCLEAR POWER
Subtitle A--Price-Anderson Act Reauthorization
SEC. 501. SHORT TITLE.
This subtitle may be cited as the `Price-Anderson Amendments Act of
2002'.
SEC. 502. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) INDEMNIFICATION OF NUCLEAR REGULATORY COMMISSION LICENSEES-
Section 170c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is
amended--
(1) in the subsection heading, by striking `LICENSES' and inserting
`LICENSEES'; and
(2) by striking `August 1, 2002' each place it appears and inserting
`August 1, 2012'.
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section
170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is
amended by striking `, until August 1, 2002,'.
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL INSTITUTIONS- Section
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended by
striking `August 1, 2002' each place it appears and inserting `August 1,
2012'.
SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section 170d.
of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking
paragraph (2) and inserting the following:
`(2) In agreements of indemnification entered into under paragraph
(1), the Secretary--
`(A) may require the contractor to provide and maintain financial
protection of such a type and in such amounts as the Secretary shall
determine to be appropriate to cover public liability arising out of or in
connection with the contractual activity; and
`(B) shall indemnify the persons indemnified against such
liability above the amount of the financial protection required, in the
amount of $10,000,000,000 (subject to adjustment for inflation under
subsection t.), in the aggregate, for all persons indemnified in
connection with such contract and for each nuclear incident, including
such legal costs of the contractor as are approved by the
Secretary.'.
(b) CONTRACT AMENDMENTS- Section 170d. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph (3) and
inserting the following:
`(3) All agreements of indemnification under which the Department of
Energy (or its predecessor agencies) may be required to indemnify any person
under this section shall be deemed to be amended, on the date of the
enactment of the Price-Anderson Amendments Act of 2002, to reflect the
amount of indemnity for public liability and any applicable financial
protection required of the contractor under this subsection.'.
(c) LIABILITY LIMIT- Section 170e.(1)(B) of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
(1) by striking `the maximum amount of financial protection required
under subsection b. or'; and
(2) by striking `paragraph (3) of subsection d., whichever amount is
more' and inserting `paragraph (2) of subsection d.'.
SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.
(a) AMOUNT OF INDEMNIFICATION- Section 170d.(5) of the Atomic Energy
Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking `$100,000,000' and
inserting `$500,000,000'.
(b) LIABILITY LIMIT- Section 170e.(4) of the Atomic Energy Act of 1954
(42 U.S.C. 2210(e)(4)) is amended by striking `$100,000,000' and inserting
`$500,000,000'.
SEC. 505. REPORTS.
Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) is
amended by striking `August 1, 1998' and inserting `August 1, 2008'.
SEC. 506. INFLATION ADJUSTMENT.
Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) is
amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by adding after paragraph (1) the following:
`(2) The Secretary shall adjust the amount of indemnification
provided under an agreement of indemnification under subsection d. not less
than once during each 5-year period following July 1, 2002, in accordance
with the aggregate percentage change in the Consumer Price Index
since--
`(A) that date, in the case of the first adjustment under this
paragraph; or
`(B) the previous adjustment under this paragraph.'.
SEC. 507. CIVIL PENALTIES.
(a) REPEAL OF AUTOMATIC REMISSION- Section 234Ab.(2) of the Atomic
Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by striking the last
sentence.
(b) LIMITATION FOR NOT-FOR-PROFIT INSTITUTIONS- Subsection d. of
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is amended
to read as follows:
`d.(1) Notwithstanding subsection a., in the case of any
not-for-profit contractor, subcontractor, or supplier, the total amount of
civil penalties assessed under subsection a. may not exceed the total amount
of fees paid within any one-year period (as determined by the Secretary)
under the contract under which the violation occurs.
`(2) For purposes of this section, the term `not-for-profit' means
that no part of the net earnings of the contractor, subcontractor, or
supplier inures, or may lawfully inure, to the benefit of any natural person
or for-profit artificial person.'.
(c) EFFECTIVE DATE- The amendments made by this section shall not
apply to any violation of the Atomic Energy Act of 1954 occurring under a
contract entered into before the date of enactment of this section.
SEC. 508. TREATMENT OF MODULAR REACTORS.
Section 170b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) is
amended by adding at the end the following:
`(5)(A) For purposes of this section only, the Commission shall
consider a combination of facilities described in subparagraph (B) to be a
single facility having a rated capacity of 100,000 electrical kilowatts or
more.
`(B) A combination of facilities referred to in subparagraph (A) is
two or more facilities located at a single site, each of which has a rated
capacity of 100,000 electrical kilowatts or more but not more than 300,000
electrical kilowatts, with a combined rated capacity of not more than
1,300,000 electrical kilowatts.'.
SEC. 509. EFFECTIVE DATE.
The amendments made by sections 503(a) and 504 do not apply to any
nuclear incident that occurs before the date of the enactment of this
subtitle.
Subtitle B--Miscellaneous Provisions
SEC. 511. URANIUM SALES.
(a) INVENTORY SALES- Section 3112(d) of the USEC Privatization Act (42
U.S.C. 2297h-10(d)) is amended to read as follows:
`(d) INVENTORY SALES- (1) In addition to the transfers authorized
under subsections (b), (c), and (e), the Secretary may, from time to time,
sell or transfer uranium (including natural uranium concentrates, natural
uranium hexafluoride, enriched uranium, and depleted uranium) from the
Department of Energy's stockpile.
`(2) Except as provided in subsections (b), (c), and (e), the
Secretary may not deliver uranium in any form for consumption by end users in
any year in excess of the following amounts:
`Annual Maximum Deliveries to End Users
(Million lbs. U3O8
`Year:
equivalent)
--3
--5
--5
--7
2013 and each year thereafter-
--10.
`(3) Except as provided in subsections (b), (c), and (e), no sale or
transfer of uranium in any form shall be made unless--
`(A) the President determines that the material is not necessary for
national security needs;
`(B) the Secretary determines, based on the written views of the
Secretary of State and the Assistant to the President for National Security
Affairs, that the sale or transfer will not adversely affect the national
security interests of the United States;
`(C) the Secretary determines that the sale of the material will not
have an adverse material impact on the domestic uranium mining, conversion,
or enrichment industry, taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agreement; and
`(D) the price paid to the Secretary will not be less than the fair
market value of the material.'.
(b) EXEMPT TRANSFERS AND SALES- Section 3112(e) of the USEC
Privatization Act (42 U.S.C. 2297h-10(e)) is amended to read as
follows:
`(e) EXEMPT SALES OR TRANSFERS- Notwithstanding subsection (d)(2), the
Secretary may transfer or sell uranium--
`(1) to the Tennessee Valley Authority for use pursuant to the
Department of Energy's highly enriched uranium or tritium program, to the
extent provided by law;
`(2) to research and test reactors under the University Reactor Fuel
Assistance and Support Program or the Reduced Enrichment for Research and
Test Reactors Program;
`(3) to USEC Inc. to replace contaminated uranium received from the
Department of Energy when the United States Enrichment Corporation was
privatized;
`(4) to any person for emergency purposes in the event of a
disruption in supply to end users in the United States; and
`(5) to any person for national security purposes, as determined by
the Secretary.'.
SEC. 512. REAUTHORIZATION OF THORIUM REIMBURSEMENT.
(a) REIMBURSEMENT OF THORIUM LICENSEES- Section 1001(b)(2)(C) of the
Energy Policy Act of 1992 (42 U.S.C. 2296a) is amended--
(1) by striking `$140,000,000' and inserting `$365,000,000';
and
(2) by adding at the end the following: `Such payments shall not
exceed the following amounts:
`(i) $90,000,000 in fiscal year 2002.
`(ii) $55,000,000 in fiscal year 2003.
`(iii) $20,000,000 in fiscal year 2004.
`(iv) $20,000,000 in fiscal year 2005.
`(v) $20,000,000 in fiscal year 2006.
`(vi) $20,000,000 in fiscal year 2007.
Any amounts authorized to be paid in a fiscal year under this
subparagraph that are not paid in that fiscal year may be paid in
subsequent fiscal years.'.
(b) AUTHORIZATION OF APPROPRIATIONS- Section 1003(a) of the Energy
Policy Act of 1992 (42 U.S.C. 2296a-2) is amended by striking `$490,000,000'
and inserting `$715,000,000'.
(c) DECONTAMINATION AND DECOMMISSIONING FUND- Section 1802(a) of the
Atomic Energy Act of 1954 (42 U.S.C. 2297g-1(a)) is amended--
(1) by striking `$488,333,333' and inserting `$518,233,333';
and
(2) by inserting after `inflation' the following: `beginning on the
date of enactment of the Energy Policy Act of 1992'.
SEC. 513. FAST FLUX TEST FACILITY.
The Secretary of Energy shall not reactivate the Fast Flux Test
Facility to conduct--
(1) any atomic energy defense activity,
(2) any space-related mission, or
(3) any program for the production or utilization of nuclear
material if the Secretary has determined, in a record of decision, that the
program can be carried out at existing operating facilities.
SEC. 514. NUCLEAR POWER 2010.
(a) DEFINITIONS- In this section:
(1) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(2) OFFICE- The term `Office' means the Office of Nuclear Energy
Science and Technology of the Department of Energy.
(3) DIRECTOR- The term `Director' means the Director of the Office
of Nuclear Energy Science and Technology of the Department of
Energy.
(4) PROGRAM- The term `Program' means the Nuclear Power 2010
Program.
(b) ESTABLISHMENT- The Secretary shall carry out a program, to be
managed by the Director.
(c) PURPOSE- The program shall aggressively pursue those activities
that will result in regulatory approvals and design completion in a phased
approach, with joint government/industry cost sharing, which would allow for
the construction and startup of new nuclear plants in the United States by
2010.
(d) ACTIVITIES- In carrying out the program, the Director
shall--
(1) issue a solicitation to industry seeking proposals from joint
venture project teams comprised of reactor vendors and power generation
companies to participate in the Nuclear Power 2010 program;
(2) seek innovative business arrangements, such as consortia among
designers, constructors, nuclear steam supply systems and major equipment
suppliers, and plant owner/operators, with strong and common incentives to
build and operate new plants in the United States;
(3) conduct the Nuclear Power 2010 program consistent with the
findings of `A Roadmap to Deploy New Nuclear Power Plants in the United
States by 2010' issued by the Near-Term Deployment Working Group of the
Nuclear Energy Research Advisory Committee of the Department of
Energy;
(4) rely upon the expertise and capabilities of the Department of
Energy national laboratories and sites in the areas of advanced nuclear fuel
cycles and fuels testing, giving consideration to existing lead laboratory
designations and the unique capabilities and facilities available at each
national laboratory and site;
(5) pursue deployment of both water-cooled and gas-cooled reactor
designs on a dual track basis that will provide maximum potential for the
success of both;
(6) include participation of international collaborators in research
and design efforts where beneficial; and
(7) seek to accomplish the essential regulatory and technical work,
both generic and design-specific, to make possible new nuclear plants within
this decade.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out the purposes of this section such
sums as are necessary for fiscal year 2003 and for each fiscal year
thereafter.
SEC. 515. OFFICE OF SPENT NUCLEAR FUEL RESEARCH.
(a) FINDINGS- Congress finds that--
(1) before the Federal Government takes any irreversible action
relating to the disposal of spent nuclear fuel, Congress must determine
whether the spent fuel in the repository should be treated as waste subject
to permanent burial or should be considered an energy resource that is
needed to meet future energy requirements; and
(2) national policy on spent nuclear fuel may evolve with time as
improved technologies for spent fuel are developed or as national energy
needs evolve.
(b) DEFINITIONS- In this section:
(1) ASSOCIATE DIRECTOR- The term `Associate Director' means the
Associate Director of the Office.
(2) OFFICE- The term `Office' means the Office of Spent Nuclear Fuel
Research within the Office of Nuclear Energy Science and Technology of the
Department of Energy.
(c) ESTABLISHMENT- There is established an Office of Spent Nuclear
Fuel Research within the Office of Nuclear Energy Science and Technology of
the Department of Energy.
(d) HEAD OF OFFICE- The Office shall be headed by the Associate
Director, who shall be a member of the Senior Executive Service appointed by
the Director of the Office of Nuclear Energy Science and Technology, and
compensated at a rate determined by applicable law.
(e) DUTIES OF THE ASSOCIATE DIRECTOR-
(1) IN GENERAL- The Associate Director shall be responsible for
carrying out an integrated research, development, and demonstration program
on technologies for treatment, recycling, and disposal of high-level nuclear
radioactive waste and spent nuclear fuel, subject to the general supervision
of the Secretary.
(2) PARTICIPATION- The Associate Director shall coordinate the
participation of national laboratories, universities, the commercial nuclear
industry, and other organizations in the investigation of technologies for
the treatment, recycling, and disposal of spent nuclear fuel and high-level
radioactive waste.
(3) ACTIVITIES- The Associate Director shall--
(A) develop a research plan to provide recommendations by
2015;
(B) identify promising technologies for the treatment, recycling,
and disposal of spent nuclear fuel and high-level radioactive
waste;
(C) conduct research and development activities for promising
technologies;
(D) ensure that all activities include as key objectives
minimization of proliferation concerns and risk to the health of the
general public or site workers, as well as development of cost-effective
technologies;
(E) require research on both reactor- and accelerator-based
transmutation systems;
(F) require research on advanced processing and
separations;
(G) include participation of international collaborators in
research efforts, and provide funding to a collaborator that brings unique
capabilities not available in the United States if the country in which
the collaborator is located is unable to provide for their support;
and
(H) ensure that research efforts are coordinated with research on
advanced fuel cycles and reactors conducted by the Office of Nuclear
Energy Science and Technology.
(f) GRANT AND CONTRACT AUTHORITY- The Secretary may make grants, or
enter into contracts, for the purposes of the research projects and activities
described in this section.
(g) REPORT- The Associate Director shall annually submit to Congress a
report on the activities and expenditures of the Office that describes the
progress being made in achieving the objectives of this section.
SEC. 516. DECOMMISSIONING PILOT PROGRAM.
(a) PILOT PROGRAM- The Secretary of Energy shall establish a
decommissioning pilot program to decommission and decontaminate the
sodium-cooled fast breeder experimental test-site reactor located in northwest
Arkansas in accordance with the decommissioning activities contained in the
August 31, 1998, Department of Energy report on the reactor.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $16,000,000.
Subtitle C--Growth of Nuclear Energy
SEC. 521. COMBINED LICENSE PERIODS.
Section 103c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) is
amended--
(1) by striking `c. Each such' and inserting the
following:
`(1) IN GENERAL- Each such'; and
(2) by adding at the end the following:
`(2) COMBINED LICENSES- In the case of a combined construction and
operating license issued under section 185(b), the duration of the operating
phase of the license period shall not be less than the duration of the
operating license if application had been made for separate construction and
operating licenses.'.
Subtitle D--NRC Regulatory Reform
SEC. 531. ANTITRUST REVIEW.
(a) IN GENERAL- Section 105 of the Atomic Energy Act of 1954 (42
U.S.C. 2135) is amended by adding at the end the following:
`(1) NOTIFICATION- Except as provided in paragraph (4), when the
Commission proposes to issue a license under section 103 or 104b., the
Commission shall notify the Attorney General of the proposed license and the
proposed terms and conditions of the license.
`(2) ACTION BY THE ATTORNEY GENERAL- Within a reasonable time (but
not more than 90 days) after receiving notification under paragraph (1), the
Attorney General shall submit to the Commission and publish in the Federal
Register a determination whether, insofar as the Attorney General is able to
determine, the proposed license would tend to create or maintain a situation
inconsistent with the antitrust laws.
`(3) INFORMATION- On the request of the Attorney General, the
Commission shall furnish or cause to be furnished such information as the
Attorney General determines to be appropriate or necessary to enable the
Attorney General to make the determination under paragraph (2).
`(4) APPLICABILITY- This subsection shall not apply to such classes
or type of licenses as the Commission, with the approval of the Attorney
General, determines would not significantly affect the activities of a
licensee under the antitrust laws.'.
(b) CONFORMING AMENDMENT- Section 105c. of the Atomic Energy Act of
1954 (42 U.S.C. 2135(c)) is amended by adding at the end the
following:
`(9) APPLICABILITY- This subsection does not apply to an application
for a license to construct or operate a utilization facility under section
103 or 104b. that is filed on or after the date of enactment of subsection
d.'.
SEC. 532. DECOMMISSIONING.
(a) AUTHORITY OVER FORMER LICENSEES FOR DECOMMISSIONING FUNDING-
Section 161i. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(i)) is
amended--
(1) by striking `and (3)' and inserting `(3)'; and
(2) by inserting before the semicolon at the end the following: `,
and (4) to ensure that sufficient funds will be available for the
decommissioning of any production or utilization facility licensed under
section 103 or 104b., including standards and restrictions governing the
control, maintenance, use, and disbursement by any former licensee under
this Act that has control over any fund for the decommissioning of the
facility'.
(b) TREATMENT OF NUCLEAR REACTOR FINANCIAL OBLIGATIONS- Section 523 of
title 11, United States Code, is amended by adding at the end the
following:
`(f) TREATMENT OF NUCLEAR REACTOR FINANCIAL OBLIGATIONS-
Notwithstanding any other provision of this title--
`(1) any funds or other assets held by a licensee or former licensee
of the Nuclear Regulatory Commission, or by any other person, to satisfy the
responsibility of the licensee, former licensee, or any other person to
comply with a regulation or order of the Nuclear Regulatory Commission
governing the decontamination and decommissioning of a nuclear power reactor
licensed under section 103 or 104b. of the Atomic Energy Act of 1954 (42
U.S.C. 2133, 2134(b)) shall not be used to satisfy the claim of any creditor
in any proceeding under this title, other than a claim resulting from an
activity undertaken to satisfy that responsibility, until the
decontamination and decommissioning of the nuclear power reactor is
completed to the satisfaction of the Nuclear Regulatory
Commission;
`(2) obligations of licensees, former licensees, or any other person
to use funds or other assets to satisfy a responsibility described in
paragraph (1) may not be rejected, avoided, or discharged in any proceeding
under this title or in any liquidation, reorganization, receivership, or
other insolvency proceeding under Federal or State law; and
`(3) private insurance premiums and standard deferred premiums held
and maintained in accordance with section 170b. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(b)) shall not be used to satisfy the claim of any
creditor in any proceeding under this title, until the indemnification
agreement executed in accordance with section 170c. of that Act (42 U.S.C.
2210(c)) is terminated.'.
Subtitle E--NRC Personnel Crisis
SEC. 541. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is
amended by adding at the end the following:
`y. exempt from the application of sections 8344 and 8468 of title 5,
United States Code, an annuitant who was formerly an employee of the
Commission who is hired by the Commission as a consultant, if the Commission
finds that the annuitant has a skill that is critical to the performance of
the duties of the Commission.'.
SEC. 542. NRC TRAINING PROGRAM.
(a) IN GENERAL- In order to maintain the human resource investment and
infrastructure of the United States in the nuclear sciences, health physics,
and engineering fields, in accordance with the statutory authorities of the
Commission relating to the civilian nuclear energy program, the Nuclear
Regulatory Commission shall carry out a training and fellowship program to
address shortages of individuals with critical safety skills.
(b) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to carry out
this section $1,000,000 for each of fiscal years 2003 through
2006.
(2) AVAILABILITY- Funds made available under paragraph (1) shall
remain available until expended.
DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND
TRANSPORTATION
TITLE VI--OIL AND GAS PRODUCTION
SEC. 601. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM
RESERVE.
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT-
Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 et seq.) is
amended--
(1) by striking section 166 (42 U.S.C. 6246) and
inserting--
`SEC. 166. There are authorized to be appropriated to the Secretary
such sums as may be necessary to carry out this part, to remain available
until expended.'; and
(2) by striking part E (42 U.S.C. 6251; relating to the expiration
of title I of the Act) and its heading.
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CONSERVATION ACT-
Title II of the Energy Policy and Conservation Act (42 U.S.C. 6271 et seq.) is
amended--
(1) by striking section 256(h) (42 U.S.C. 6276(h)) and
inserting--
`(h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
part, to remain available until expended.';
(2) by striking section 273(e) (42 U.S.C. 6283(e); relating to the
expiration of summer fill and fuel budgeting programs); and
(3) by striking part D (42 U.S.C. 6285; relating to the expiration
of title II of the Act) and its heading.
(c) TECHNICAL AMENDMENTS- The table of contents for the Energy Policy
and Conservation Act is amended by striking the items relating to part D of
title I and part D of title II.
SEC. 602. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.
(a) TIMELY ACTION ON LEASES AND PERMITS- To ensure timely action on
oil and gas leases and applications for permits to drill on lands otherwise
available for leasing, the Secretary of the Interior shall--
(1) ensure expeditious compliance with the requirements of section
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C));
(2) improve consultation and coordination with the States;
and
(3) improve the collection, storage, and retrieval of information
related to such leasing activities.
(b) IMPROVED ENFORCEMENT- The Secretary shall improve inspection and
enforcement of oil and gas activities, including enforcement of terms and
conditions in permits to drill.
(c) AUTHORIZATION OF APPROPRIATIONS- For each of the fiscal years 2003
through 2006, in addition to amounts otherwise authorized to be appropriated
for the purpose of carrying out section 17 of the Mineral Leasing Act (30
U.S.C. 226), there are authorized to be appropriated to the Secretary of the
Interior--
(1) $40,000,000 for the purpose of carrying out paragraphs (1)
through (3) of subsection (a); and
(2) $20,000,000 for the purpose of carrying out subsection
(b).
SEC. 603. OIL AND GAS LEASE ACREAGE LIMITATIONS.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) is
amended by inserting after `acreage held in special tar sand areas' the
following: `as well as acreage under any lease any portion of which has been
committed to a federally approved unit or cooperative plan or communitization
agreement, or for which royalty, including compensatory royalty or royalty in
kind, was paid in the preceding calendar year,'.
SEC. 604. ORPHANED AND ABANDONED WELLS ON FEDERAL LAND.
(a) ESTABLISHMENT- (1) The Secretary of the Interior, in cooperation
with the Secretary of Agriculture, shall establish a program to ensure within
3 years after the date of enactment of this Act, remediation, reclamation, and
closure of orphaned oil and gas wells located on lands administered by the
land management agencies within the Department of the Interior and the United
States Forest Service that are--
(C) idled for more than 5 years and having no beneficial
use.
(2) The program shall include a means of ranking critical sites for
priority in remediation based on potential environmental harm, other land use
priorities, and public health and safety.
(3) The program shall provide that responsible parties be identified
wherever possible and that the costs of remediation be recovered.
(4) In carrying out the program, the Secretary of the Interior shall
work cooperatively with the Secretary of Agriculture and the States within
which the Federal lands are located, and shall consult with the Secretary of
Energy, and the Interstate Oil and Gas Compact Commission.
(b) PLAN- Within 6 months from the date of enactment of this section,
the Secretary of the Interior, in cooperation with the Secretary of
Agriculture, shall prepare a plan for carrying out the program established
under subsection (a). Copies of the plan shall be transmitted to the Committee
on Energy and Natural Resources of the Senate and the Committee on Resources
of the House of Representatives.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of the Interior $5,000,000 for each of fiscal
years 2003 through 2005 to carry out the activities provided for in this
section.
SEC. 605. ORPHANED AND ABANDONED OIL AND GAS WELL PROGRAM.
(a) ESTABLISHMENT- The Secretary of Energy shall establish a program
to provide technical assistance to the various oil and gas producing States to
facilitate State efforts over a 10-year period to ensure a practical and
economical remedy for environmental problems caused by orphaned and abandoned
exploration or production well sites on State and private lands. The Secretary
shall work with the States, through the Interstate Oil and Gas Compact
Commission, to assist the States in quantifying and mitigating environmental
risks of onshore abandoned and orphaned wells on State and private
lands.
(b) PROGRAM ELEMENTS- The program should include--
(1) mechanisms to facilitate identification of responsible parties
wherever possible;
(2) criteria for ranking critical sites based on factors such as
other land use priorities, potential environmental harm and public
visibility; and
(3) information and training programs on best practices for
remediation of different types of sites.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy for the activities under this section
$5,000,000 for each of fiscal years 2003 through 2005 to carry out the
provisions of this section.
SEC. 606. OFFSHORE DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 U.S.C.
1334) is amended by adding at the end the following:
`(k) SUSPENSION OF OPERATIONS FOR SUBSALT EXPLORATION- Notwithstanding
any other provision of law or regulation, the Secretary may grant a request
for a suspension of operations under any lease to allow the lessee to
reprocess or reinterpret geologic or geophysical data beneath allocthonous
salt sheets, when in the Secretary's judgment such suspension is necessary to
prevent waste caused by the drilling of unnecessary wells, and to maximize
ultimate recovery of hydrocarbon resources under the lease. Such suspension
shall be limited to the minimum period of time the Secretary determines is
necessary to achieve the objectives of this subsection.'.
SEC. 607. COALBED METHANE STUDY.
(a) STUDY- The National Academy of Sciences shall conduct a study on
the effects of coalbed methane production on surface and water
resources.
(b) DATA ANALYSIS- The study shall analyze available hydrogeologic and
water quality data, along with other pertinent environmental or other
information to determine--
(1) adverse effects associated with surface or subsurface disposal
of waters produced during extraction of coalbed methane;
(2) depletion of groundwater aquifers or drinking water sources
associated with production of coalbed methane;
(3) any other significant adverse impacts to surface or water
resources associated with production of coalbed methane; and
(4) production techniques or other factors that can mitigate adverse
impacts from coalbed methane development.
(c) RECOMMENDATIONS- The study shall analyze existing Federal and
State laws and regulations, and make recommendations as to changes, if any, to
Federal law necessary to address adverse impacts to surface or water resources
attributable to coalbed methane development.
(d) COMPLETION OF STUDY- The National Academy of Sciences shall submit
the study to the Secretary of the Interior within 18 months after the date of
enactment of this Act, and shall make the study available to the public at the
same time.
(e) REPORT TO CONGRESS- The Secretary of the Interior shall report to
Congress within 6 months of her receipt of the study on--
(1) the findings and recommendations of the study;
(2) the Secretary's agreement or disagreement with each of its
findings and recommendations; and
(3) any recommended changes in funding to address the effects of
coalbed methane production on surface and water resources.
SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOVERY OF DOMESTIC OIL AND GAS
RESOURCES.
(a) EVALUATION- The Secretary of Energy, in coordination with the
Secretaries of the Interior, Commerce, and Treasury, Indian tribes and the
Interstate Oil and Gas Compact Commission, shall evaluate the impact of
existing Federal and State tax and royalty policies on the development of
domestic oil and gas resources and on revenues to Federal, State, local and
tribal governments.
(b) SCOPE- The evaluation under subsection (a) shall--
(1) analyze the impact of fiscal policies on oil and natural gas
exploration, development drilling, and production under different price
scenarios, including the impact of the individual and corporate Alternative
Minimum Tax, State and local production taxes and fixed royalty rates during
low price periods;
(2) assess the effect of existing Federal and State fiscal policies
on investment under different geological and developmental circumstances,
including but not limited to deepwater environments, subsalt formations,
deep and deviated wells, coalbed methane and other unconventional oil and
gas formations;
(3) assess the extent to which Federal and State fiscal policies
negatively impact the ultimate recovery of resources from existing fields
and smaller accumulations in offshore waters, especially in water depths
less than 800 meters, of the Gulf of Mexico;
(4) compare existing Federal and State policies with tax and royalty
regimes in other countries with particular emphasis on similar geological,
developmental and infrastructure conditions; and
(5) evaluate how alternative tax and royalty policies, including
counter-cyclical measures, could increase recovery of domestic oil and
natural gas resources and revenues to Federal, State, local and tribal
governments.
(c) POLICY RECOMMENDATIONS- Based upon the findings of the evaluation
under subsection (a), a report describing the findings and recommendations for
policy changes shall be provided to the President, the Congress, the Governors
of the member States of the Interstate Oil and Gas Compact Commission, and
Indian tribes having an oil and gas lease approved by the Secretary of the
Interior. The recommendations should ensure that the public interest in
receiving the economic benefits of tax and royalty revenues is balanced with
the broader national security and economic interests in maximizing recovery of
domestic resources. The report should include recommendations regarding
actions to--
(1) ensure stable development drilling during periods of low oil
and/or natural gas prices to maintain reserve replacement and
deliverability;
(2) minimize the negative impact of a volatile investment climate on
the oil and gas service industry and domestic oil and gas exploration and
production;
(3) ensure a consistent level of domestic activity to encourage the
education and retention of a technical workforce; and
(4) maintain production capability during periods of low oil and/or
natural gas prices.
(d) ROYALTY GUIDELINES- The recommendations required under (c) should
include guidelines for private resource holders as to the appropriate level of
royalties given geology, development cost, and the national interest in
maximizing recovery of oil and gas resources.
(e) REPORT- The study under subsection (a) shall be completed not
later than 18 months after the date of enactment of this section. The report
and recommendations required in (c) shall be transmitted to the President, the
Congress, Indian tribes, and the Governors of the member States of the
Interstate Oil and Gas Compact Commission.
SEC. 609. STRATEGIC PETROLEUM RESERVE.
(a) FULL CAPACITY- The President shall--
(1) fill the Strategic Petroleum Reserve established pursuant to
part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231
et seq.) to full capacity as soon as practicable;
(2) acquire petroleum for the Strategic Petroleum Reserve by the
most practicable and cost-effective means, including the acquisition of
crude oil the United States is entitled to receive in kind as royalties from
production on Federal lands; and
(3) ensure that the fill rate minimizes impacts on petroleum
markets.
(b) RECOMMENDATIONS- Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall submit to Congress a plan
to--
(1) eliminate any infrastructure impediments that may limit maximum
drawdown capability; and
(2) determine whether the capacity of the Strategic Petroleum
Reserve on the date of enactment of this section is adequate in light of the
increasing consumption of petroleum and the reliance on imported
petroleum.
SEC. 610. HYDRAULIC FRACTURING.
Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is
amended by adding at the end the following:
`(e) Hydraulic Fracturing for Oil and Gas Production-
`(1) Study of the effects of hydraulic fracturing-
`(A) IN GENERAL- As soon as practicable, but in no event later
than 24 months after the date of enactment of this subsection, the
Administrator shall complete a study of the known and potential effects on
underground drinking water sources of hydraulic fracturing, including the
effects of hydraulic fracturing on underground drinking water sources on a
nationwide basis, and within specific regions, States, or portions of
States.
`(B) CONSULTATION- In planning and conducting the study, the
Administrator shall consult with the Secretary of the Interior, the
Secretary of Energy, the Ground Water Protection Council, affected States,
and, as appropriate, representatives of environmental, industry, academic,
scientific, public health, and other relevant organizations. Such study
may be accomplished in conjunction with other ongoing studies related to
the effects of oil and gas production on groundwater
resources.
`(C) STUDY ELEMENTS- The study conducted under subparagraph (A)
shall, at a minimum, examine and make findings as to
whether--
`(i) such hydraulic fracturing has endangered or will endanger
(as defined under subsection (d)(2)) underground drinking water sources,
including those sources within specific regions, States or portions of
States;
`(ii) there are specific methods, practices, or hydrogeologic
circumstances in which hydraulic fracturing has endangered or will
endanger underground drinking water sources; and
`(iii) there are any precautionary actions that may reduce or
eliminate any such endangerment.
`(D) STUDY OF HYDRAULIC FRACTURING IN A PARTICULAR TYPE OF
GEOLOGIC FORMATION- The Administrator may also complete a separate study
on the known and potential effects on underground drinking water sources
of hydraulic fracturing in a particular type of geologic
formation:
`(i) If such a study is undertaken, the Administrator shall
follow the procedures for study preparation and independent scientific
review set forth in subparagraphs (1) (B) and (C) and (2) of this
subsection. The Administrator may complete this separate study prior to
the completion of the broader study of hydraulic fracturing required
pursuant to subparagraph (A) of this subsection.
`(ii) At the conclusion of independent scientific review for any
separate study, the Administrator shall determine, pursuant to paragraph
(3), whether regulation of hydraulic fracturing in the particular type
of geologic formation addressed in the separate study is necessary under
this part to ensure that underground sources of drinking water will not
be endangered on a nationwide basis, or within a specific region, State
or portions of a State. Subparagraph (4) of this subsection shall apply
to any such determination by the Administrator.
`(iii) If the Administrator completes a separate study, the
Administrator may use the information gathered in the course of such a
study in undertaking her broad study to the extent appropriate. The
broader study need not include a reexamination of the conclusions
reached by the Administrator in any separate study.
`(2) INDEPENDENT SCIENTIFIC REVIEW-
`(A) IN GENERAL- Prior to the time the study under paragraph (1)
is completed, the Administrator shall enter into an appropriate agreement
with the National Academy of Sciences to have the Academy review the
conclusions of the study.
`(B) REPORT- Not later than 11 months after entering into an
appropriate agreement with the Administrator, the National Academy of
Sciences shall report to the Administrator, the Committee on Energy and
Commerce of the House of Representatives, and the Committee on Environment
and Public Works of the Senate, on the--
`(i) findings related to the study conducted by the
Administrator under paragraph (1);
`(ii) the scientific and technical basis for such findings;
and
`(iii) recommendations, if any, for modifying the findings of
the study.
`(3) REGULATORY DETERMINATION-
`(A) IN GENERAL- Not later than 6 months after receiving the
National Academy of Sciences report under paragraph (2), the Administrator
shall determine, after informal public hearings and public notice and
opportunity for comment, and based on information developed or accumulated
in connection with the study required under paragraph (1) and the National
Academy of Sciences report under paragraph (2), either--
`(i) that regulation of hydraulic fracturing under this part is
necessary to ensure that underground sources of drinking water will not
be endangered on a nationwide basis, or within a specific region, State
or portions of a State; or
`(ii) that regulation described under clause (i) is
unnecessary.
`(B) PUBLICATION OF DETERMINATION- The Administrator shall publish
the determination in the Federal Register, accompanied by an explanation
and the reasons for it.
`(4) PROMULGATION OF REGULATIONS-
`(A) REGULATION NECESSARY- If the Administrator determines under
paragraph (3) that regulation by hydraulic fracturing under this part is
necessary to ensure that hydraulic fracturing does not endanger
underground drinking water sources on a nationwide basis, or within a
specific region, State or portions of a State, the Administrator shall,
within 6 months after the issuance of that determination, and after public
notice and opportunity for comment, promulgate regulations under section
1421 (42 U.S.C. 300h) to ensure that hydraulic fracturing will not
endanger such underground sources of drinking water. However, for purposes
of the Administrator's approval or disapproval under section 1422 of any
State underground injection control program for regulating hydraulic
fracturing, a State at any time may make the alternative demonstration
provided for in section 1425 of this title.
`(B) REGULATION UNNECESSARY- The Administrator shall not regulate
or require States to regulate hydraulic fracturing under this part unless
the Administrator determines under paragraph (3) that such regulation is
necessary. This provision shall not apply to any State which has a program
for the regulation of hydraulic fracturing that was approved by the
Administrator under this part prior to the effective date of this
subsection.
`(C) EXISTING REGULATIONS- A determination by the Administrator
under paragraph (3) that regulation is unnecessary will relieve all States
(including those with existing approved programs for the regulation of
hydraulic fracturing) from any further obligation to regulate hydraulic
fracturing as an underground injection under this part.
`(5) DEFINITION OF HYDRAULIC FRACTURING- For purposes of this
subsection, the term `hydraulic fracturing' means the process of creating a
fracture in a reservoir rock, and injecting fluids and propping agents, for
the purposes of reservoir stimulation related to oil and gas production
activities.
`(6) SAVINGS- Nothing in this subsection shall in any way limit the
authorities of the Administrator under section 1431 (42 U.S.C.
300i).'.
SEC. 611. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator of the
Environmental Protection Agency $100,000 for fiscal year 2003, to remain
available until expended, for a grant to the State of Alabama to assist in the
implementation of its regulatory program under section 1425 of the Safe
Drinking Water Act.
SEC. 612. PRESERVATION OF OIL AND GAS RESOURCE DATA.
The Secretary of the Interior, through the United States Geological
Survey, may enter into appropriate arrangements with State agencies that
conduct geological survey activities to collect, archive, and provide public
access to data and study results regarding oil and natural gas resources. The
Secretary may accept private contributions of property and services for
purposes of this section.
SEC 613. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE
POWDER RIVER BASIN.
The Secretary of the Interior shall undertake a review of existing
authorities to resolve conflicts between the development of Federal coal and
the development of Federal and non-Federal coalbed methane in the Powder River
Basin in Wyoming and Montana. Not later than 90 days from enactment of this
Act, the Secretary shall report to Congress on her plan to resolve these
conflicts.
TITLE VII--NATURAL GAS PIPELINES
Subtitle A--Alaska Natural Gas Pipeline
SEC. 701. SHORT TITLE.
This subtitle may be cited as the `Alaska Natural Gas Pipeline Act of
2002'.
SEC. 702. FINDINGS.
(1) Construction of a natural gas pipeline system from the Alaskan
North Slope to United States markets is in the national interest and will
enhance national energy security by providing access to the significant gas
reserves in Alaska needed to meet the anticipated demand for natural
gas.
(2) The Commission issued a conditional certificate of public
convenience and necessity for the Alaska Natural Gas Transportation System,
which remains in effect.
SEC. 703. PURPOSES.
The purposes of this subtitle are--
(1) to provide a statutory framework for the expedited approval,
construction, and initial operation of an Alaska natural gas transportation
project, as an alternative to the framework provided in the Alaska Natural
Gas Transportation Act of 1976 (15 U.S.C. 719-719o), which remains in
effect;
(2) to establish a process for providing access to such
transportation project in order to promote competition in the exploration,
development and production of Alaska natural gas;
(3) to clarify Federal authorities under the Alaska Natural Gas
Transportation Act; and
(4) to authorize Federal financial assistance to an Alaska natural
gas transportation project as provided in this subtitle.
SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY.
(a) AUTHORITY OF THE COMMISSION- Notwithstanding the provisions of the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719-719o), the
Commission may, pursuant to section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)), consider and act on an application for the issuance of a certificate
of public convenience and necessity authorizing the construction and operation
of an Alaska natural gas transportation project other than the Alaska Natural
Gas Transportation System.
(b) ISSUANCE OF CERTIFICATE- (1) The Commission shall issue a
certificate of public convenience and necessity authorizing the construction
and operation of an Alaska natural gas transportation project under this
section if the applicant has satisfied the requirements of section 7(e) of the
Natural Gas Act (15 U.S.C. 717f(e)).
(2) In considering an application under this section, the Commission
shall presume that--
(A) a public need exists to construct and operate the proposed
Alaska natural gas transportation project; and
(B) sufficient downstream capacity will exist to transport the
Alaska natural gas moving through such project to markets in the contiguous
United States.
(c) EXPEDITED APPROVAL PROCESS- The Commission shall issue a final
order granting or denying any application for a certificate of public
convenience and necessity under section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)) and this section not more than 60 days after the issuance of the
final environmental impact statement for that project pursuant to section
705.
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE- No license, permit, lease,
right-of-way, authorization or other approval required under Federal law for
the construction of any pipeline to transport natural gas from lands within
the Prudhoe Bay oil and gas lease area may be granted for any pipeline that
follows a route that traverses--
(1) the submerged lands (as defined by the Submerged Lands Act)
beneath, or the adjacent shoreline of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 degrees North
latitude.
(e) OPEN SEASON- Except where an expansion is ordered pursuant to
section 706, initial or expansion capacity on any Alaska natural gas
transportation project shall be allocated in accordance with procedures to be
established by the Commission in regulations governing the conduct of open
seasons for such project. Such procedures shall include the criteria for and
timing of any open seasons, be consistent with the purposes set forth in
section 703(2) and, for any open season for capacity beyond the initial
capacity, provide the opportunity for the transportation of natural gas other
than from the Prudhoe Bay and Point Thompson units. The Commission shall issue
such regulations no later than 120 days after the enactment of this
subtitle.
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES- Applications for
additional or expanded pipeline facilities that may be required to transport
Alaska natural gas from Canada to markets in the contiguous United States may
be made pursuant to the Natural Gas Act. To the extent such pipeline
facilities include the expansion of any facility constructed pursuant to the
Alaska Natural Gas Transportation Act of 1976, the provisions of that Act
shall continue to apply.
(g) STUDY OF IN-STATE NEEDS- The holder of the certificate of public
convenience and necessity issued, modified, or amended by the Commission for
an Alaska natural gas transportation project shall demonstrate that it has
conducted a study of Alaska in-State needs, including tie-in points along the
Alaska natural gas transportation project for in-State access.
(h) ALASKA ROYALTY GAS- The Commission, upon the request of the State
of Alaska and after a hearing, may provide for reasonable access to the Alaska
natural gas transportation project for the State of Alaska or its designee for
the transportation of the State's royalty gas for local consumption needs
within the State: Provided, That the rates of existing shippers of
subscribed capacity on such project shall not be increased as a result of such
access.
(i) REGULATIONS- The Commission may issue regulations to carry out the
provisions of this section.
SEC. 705. ENVIRONMENTAL REVIEWS.
(a) COMPLIANCE WITH NEPA- The issuance of a certificate of public
convenience and necessity authorizing the construction and operation of any
Alaska natural gas transportation project under section 704 shall be treated
as a major Federal action significantly affecting the quality of the human
environment within the meaning of section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
(b) DESIGNATION OF LEAD AGENCY- The Commission shall be the lead
agency for purposes of complying with the National Environmental Policy Act of
1969, and shall be responsible for preparing the statement required by section
102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with respect to an Alaska natural
gas transportation project under section 704. The Commission shall prepare a
single environmental statement under this section, which shall consolidate the
environmental reviews of all Federal agencies considering any aspect of the
project.
(c) OTHER AGENCIES- All Federal agencies considering aspects of the
construction and operation of an Alaska natural gas transportation project
under section 704 shall cooperate with the Commission, and shall comply with
deadlines established by the Commission in the preparation of the statement
under this section. The statement prepared under this section shall be used by
all such agencies to satisfy their responsibilities under section 102(2)(C) of
the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) with
respect to such project.
(d) EXPEDITED PROCESS- The Commission shall issue a draft statement
under this section not later than 12 months after the Commission determines
the application to be complete and shall issue the final statement not later
than 6 months after the Commission issues the draft statement, unless the
Commission for good cause finds that additional time is needed.
SEC. 706. PIPELINE EXPANSION.
(a) AUTHORITY- With respect to any Alaska natural gas transportation
project, upon the request of one or more persons and after giving notice and
an opportunity for a hearing, the Commission may order the expansion of such
project if it determines that such expansion is required by the present and
future public convenience and necessity.
(b) REQUIREMENTS- Before ordering an expansion the Commission
shall--
(1) approve or establish rates for the expansion service that are
designed to ensure the recovery, on an incremental or rolled-in basis, of
the cost associated with the expansion (including a reasonable rate of
return on investment);
(2) ensure that the rates as established do not require existing
shippers on the Alaska natural gas transportation project to subsidize
expansion shippers;
(3) find that the proposed shipper will comply with, and the
proposed expansion and the expansion of service will be undertaken and
implemented based on, terms and conditions consistent with the
then-effective tariff of the Alaska natural gas transportation
project;
(4) find that the proposed facilities will not adversely affect the
financial or economic viability of the Alaska natural gas transportation
project;
(5) find that the proposed facilities will not adversely affect the
overall operations of the Alaska natural gas transportation
project;
(6) find that the proposed facilities will not diminish the contract
rights of existing shippers to previously subscribed certificated
capacity;
(7) ensure that all necessary environmental reviews have been
completed; and
(8) find that adequate downstream facilities exist or are expected
to exist to deliver incremental Alaska natural gas to market.
(c) REQUIREMENT FOR A FIRM TRANSPORTATION AGREEMENT- Any order of the
Commission issued pursuant to this section shall be null and void unless the
person or persons requesting the order executes a firm transportation
agreement with the Alaska natural gas transportation project within a
reasonable period of time as specified in such order.
(d) LIMITATION- Nothing in this section shall be construed to expand
or otherwise affect any authorities of the Commission with respect to any
natural gas pipeline located outside the State of Alaska.
(e) REGULATIONS- The Commission may issue regulations to carry out the
provisions of this section.
SEC. 707. FEDERAL COORDINATOR.
(a) ESTABLISHMENT- There is established as an independent
establishment in the executive branch, the Office of the Federal Coordinator
for Alaska Natural Gas Transportation Projects.
(b) THE FEDERAL COORDINATOR- The Office shall be headed by a Federal
Coordinator for Alaska Natural Gas Transportation Projects, who
shall--
(1) be appointed by the President, by and with the advice of the
Senate,
(2) hold office at the pleasure of the President, and
(3) be compensated at the rate prescribed for level III of the
Executive Schedule (5 U.S.C. 5314).
(c) DUTIES- The Federal Coordinator shall be responsible for--
(1) coordinating the expeditious discharge of all activities by
Federal agencies with respect to an Alaska natural gas transportation
project; and
(2) ensuring the compliance of Federal agencies with the provisions
of this subtitle.
(d) REVIEWS AND ACTIONS OF OTHER FEDERAL AGENCIES- (1) All reviews
conducted and actions taken by any Federal officer or agency relating to an
Alaska natural gas transportation project authorized under this section shall
be expedited, in a manner consistent with completion of the necessary reviews
and approvals by the deadlines set forth in this subtitle.
(2) No Federal officer or agency shall have the authority to include
terms and conditions that are permitted, but not required, by law on any
certificate, right-of-way, permit, lease or other authorization issued to an
Alaska natural gas transportation project if the Federal Coordinator
determines that the terms and conditions would prevent or impair in any
significant respect the expeditious construction and operation of the
project.
(3) Unless required by law, no Federal officer or agency shall add to,
amend, or abrogate any certificate, right-of-way, permit, lease or other
authorization issued to an Alaska natural gas transportation project if the
Federal Coordinator determines that such action would prevent or impair in any
significant respect the expeditious construction and operation of the
project.
(e) STATE COORDINATION- The Federal Coordinator shall enter into a
Joint Surveillance and Monitoring Agreement, approved by the President and the
Governor of Alaska, with the State of Alaska similar to that in effect during
construction of the Trans-Alaska Oil Pipeline to monitor the construction of
the Alaska natural gas transportation project. The Federal Government shall
have primary surveillance and monitoring responsibility where the Alaska
natural gas transportation project crosses Federal lands and private lands,
and the State government shall have primary surveillance and monitoring
responsibility where the Alaska natural gas transportation project crosses
State lands.
SEC. 708. JUDICIAL REVIEW.
(a) EXCLUSIVE JURISDICTION- The United States Court of Appeals for the
District of Columbia Circuit shall have exclusive jurisdiction to
determine--
(1) the validity of any final order or action (including a failure
to act) of any Federal agency or officer under this subtitle;
(2) the constitutionality of any provision of this subtitle, or any
decision made or action taken thereunder; or
(3) the adequacy of any environmental impact statement prepared
under the National Environmental Policy Act of 1969 with respect to any
action under this subtitle.
(b) DEADLINE FOR FILING CLAIM- Claims arising under this subtitle may
be brought not later than 60 days after the date of the decision or action
giving rise to the claim.
(c) EXPEDITED CONSIDERATION- The United States Court of Appeals for
the District of Columbia Circuit shall set any action brought under subsection
(a) of this section for expedited consideration, taking into account the
national interest as described in section 702 of this subtitle.
(d) AMENDMENT TO ANGTA- Section 10(c) of the Alaska Gas Transportation
Act of 1976 (15 U.S.C. 719h) is amended by adding the following
paragraph:
`(2) EXPEDITED CONSIDERATION- The United States Court of Appeals for
the District of Columbia Circuit shall set any action brought under
subsection (a) of this section for expedited consideration, taking into
account the national interest described in section 2 of this
Act.'.
SEC. 709. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL
GAS.
(a) LOCAL DISTRIBUTION- Any facility receiving natural gas from the
Alaska natural gas transportation project for delivery to consumers within the
State of Alaska shall be deemed to be a local distribution facility within the
meaning of section 1(b) of the Natural Gas Act (15 U.S.C. 717), and therefore
not subject to the jurisdiction of the Federal Energy Regulatory
Commission.
(b) ADDITIONAL PIPELINES- Nothing in this subtitle, except as provided
in subsection 704(d), shall preclude or affect a future gas pipeline that may
be constructed to deliver natural gas to Fairbanks, Anchorage,
Matanuska-Susitna Valley, or the Kenai peninsula or Valdez or any other site
in the State of Alaska for consumption within or distribution outside the
State of Alaska.
(c) RATE COORDINATION- Pursuant to the Natural Gas Act, the Commission
shall establish rates for the transportation of natural gas on the Alaska
natural gas transportation project. In exercising such authority, the
Commission, pursuant to Section 17(b) of the Natural Gas Act (15 U.S.C. 717p),
shall confer with the State of Alaska regarding rates (including rate
settlements) applicable to natural gas transported on and delivered from the
Alaska natural gas transportation project for use within the State of
Alaska.
SEC. 710. LOAN GUARANTEE.
(a) AUTHORITY- The Secretary of Energy may guarantee not more than 80
percent of the principal of any loan made to the holder of a certificate of
public convenience and necessity issued under section 704(b) of this Act or
section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719g) for the purpose of constructing an Alaska natural gas transportation
project.
(b) CONDITIONS- (1) The Secretary of Energy may not guarantee a loan
under this section unless the guarantee has filed an application for a
certificate of public convenience and necessity under section 704(b) of this
Act or for an amended certificate under section 9 of the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719g) with the Commission not later than
18 months after the date of enactment of this subtitle.
(2) A loan guaranteed under this section shall be made by a financial
institution subject to the examination of the Secretary.
(3) Loan requirements, including term, maximum size, collateral
requirements and other features shall be determined by the Secretary.
(c) LIMITATION ON AMOUNT- Commitments to guarantee loans may be made
by the Secretary of Energy only to the extent that the total loan principal,
any part of which is guaranteed, will not exceed $10,000,000,000.
(d) REGULATIONS- The Secretary of Energy may issue regulations to
carry out the provisions of this section.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary such sums as may be necessary to cover the cost
of loan guarantees, as defined by section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)).
SEC. 711. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.
(a) REQUIREMENT OF STUDY- If no application for the issuance of a
certificate or amended certificate of public convenience and necessity
authorizing the construction and operation of an Alaska natural gas
transportation project has been filed with the Commission within 18 months
after the date of enactment of this title, the Secretary of Energy shall
conduct a study of alternative approaches to the construction and operation of
the project.
(b) SCOPE OF STUDY- The study shall consider the feasibility of
establishing a Government corporation to construct an Alaska natural gas
transportation project, and alternative means of providing Federal financing
and ownership (including alternative combinations of Government and private
corporate ownership) of the project.
(c) CONSULTATION- In conducting the study, the Secretary of Energy
shall consult with the Secretary of the Treasury and the Secretary of the Army
(acting through the Commanding General of the Corps of Engineers).
(d) REPORT- If the Secretary of Energy is required to conduct a study
under subsection (a), he shall submit a report containing the results of the
study, his recommendations, and any proposals for legislation to implement his
recommendations to the Congress within 6 months after the expiration of the
Secretary of Energy's authority to guarantee a loan under section 710.
SEC. 712. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.
(a) SAVINGS CLAUSE- Nothing in this subtitle affects any decision,
certificate, permit, right-of-way, lease, or other authorization issued under
section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719g) or any Presidential findings or waivers issued in accordance with that
Act.
(b) CLARIFICATION OF AUTHORITY TO AMEND TERMS AND CONDITIONS TO MEET
CURRENT PROJECT REQUIREMENTS- Any Federal officer or agency responsible for
granting or issuing any certificate, permit, right-of-way, lease, or other
authorization under section 9 of the Alaska Natural Gas Transportation Act of
1976 (15 U.S.C. 719g) may add to, amend, or abrogate any term or condition
included in such certificate, permit, right-of-way, lease, or other
authorization to meet current project requirements (including the physical
design, facilities, and tariff specifications), so long as such action does
not compel a change in the basic nature and general route of the Alaska
Natural Gas Transportation System as designated and described in section 2 of
the President's Decision, or would otherwise prevent or impair in any
significant respect the expeditious construction and initial operation of such
transportation system.
(c) UPDATED ENVIRONMENTAL REVIEWS- The Secretary of Energy shall
require the sponsor of the Alaska Natural Gas Transportation System to submit
such updated environmental data, reports, permits, and impact analyses as the
Secretary determines are necessary to develop detailed terms, conditions, and
compliance plans required by section 5 of the President's Decision.
SEC. 713. DEFINITIONS.
For purposes of this subtitle:
(1) The term `Alaska natural gas' means natural gas derived from the
area of the State of Alaska lying north of 64 degrees North
latitude.
(2) The term `Alaska natural gas transportation project' means any
natural gas pipeline system that carries Alaska natural gas to the border
between Alaska and Canada (including related facilities subject to the
jurisdiction of the Commission) that is authorized under either--
(A) the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719-719o); or
(B) section 704 of this subtitle.
(3) The term `Alaska Natural Gas Transportation System' means the
Alaska natural gas transportation project authorized under the Alaska
Natural Gas Transportation Act of 1976 and designated and described in
section 2 of the President's Decision.
(4) The term `Commission' means the Federal Energy Regulatory
Commission.
(5) The term `President's Decision' means the Decision and Report to
Congress on the Alaska Natural Gas Transportation system issued by the
President on September 22, 1977 pursuant to section 7 of the Alaska Natural
Gas Transportation Act of 1976 (15 U.S.C. 719c) and approved by Public Law
95-158.
SEC. 714. SENSE OF THE SENATE.
It is the sense of the Senate that an Alaska natural gas
transportation project will provide significant economic benefits to the
United States and Canada. In order to maximize those benefits, the Senate
urges the sponsors of the pipeline project to make every effort to use steel
that is manufactured or produced in North America and to negotiate a project
labor agreement to expedite construction of the pipeline.
SEC. 715. ALASKAN PIPELINE CONSTRUCTION TRAINING PROGRAM.
(a) Within six months after enactment of this Act, the Secretary of
Labor (in this section referred to as the `Secretary') shall submit a report
to the Committee on Energy and Natural Resources of the United States Senate
and the Committee on Resources of the United States House of Representatives
setting forth a program to train Alaska residents in the skills and crafts
required in the design, construction, and operation of an Alaska gas pipeline
system and that will enhance employment and contracting opportunities for
Alaskan residents. The report shall also describe any laws, rules, regulations
and policies which act as a deterrent to hiring Alaskan residents or
contracting with Alaskan residents to perform work on Alaska gas pipelines,
together with any recommendations for change. For purposes of this subsection,
Alaskan residents shall be defined as those individuals eligible to vote
within the State of Alaska on the date of enactment of this Act.
(b) Within 1 year of the date the report is transmitted to Congress,
the Secretary shall establish within the State of Alaska, at such locations as
are appropriate, one or more training centers for the express purpose of
training Alaskan residents in the skills and crafts necessary in the design,
construction and operation of gas pipelines in Alaska. Each such training
center shall also train Alaskan residents in the skills required to write,
offer, and monitor contracts in support of the design, construction, and
operation of Alaska gas pipelines.
(c) In implementing the report and program described in this
subsection, the Secretary shall consult with the Alaskan Governor.
(d) There are authorized to be appropriated to the Secretary such sums
as may be necessary, but not to exceed $20,000,000 for the purposes of this
subsection.
Subtitle B--Operating Pipelines
SEC. 721. ENVIRONMENTAL REVIEW AND PERMITTING OF NATURAL GAS PIPELINE
PROJECTS.
(a) INTERAGENCY REVIEW- The Chairman of the Council on Environmental
Quality, in coordination with the Federal Energy Regulatory Commission, shall
establish an interagency task force to develop an interagency memorandum of
understanding to expedite the environmental review and permitting of natural
gas pipeline projects.
(b) MEMBERSHIP OF INTERAGENCY TASK FORCE- The task force shall consist
of--
(1) the Chairman of the Council on Environmental Quality, who shall
serve as the Chairman of the interagency task force,
(2) the Chairman of the Federal Energy Regulatory
Commission,
(3) the Director of the Bureau of Land Management,
(4) the Director of the United States Fish and Wildlife
Service,
(5) the Commanding General, United States Army Corps of
Engineers,
(6) the Chief of the Forest Service,
(7) the Administrator of the Environmental Protection
Agency,
(8) the Chairman of the Advisory Council on Historic Preservation,
and
(9) the heads of such other agencies as the Chairman of the Council
on Environmental Quality and the Chairman of the Federal Energy Regulatory
Commission deem appropriate.
(c) MEMORANDUM OF UNDERSTANDING- The agencies represented by the
members of the interagency task force shall enter into the memorandum of
understanding not later than 1 year after the date of the enactment of this
section.
Subtitle C--Pipeline Safety
PART I--SHORT TITLE; AMENDMENT OF TITLE 49
SEC. 741. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES
CODE.
(a) SHORT TITLE- This subtitle may be cited as the `Pipeline Safety
Improvement Act of 2002'.
(b) Amendment of Title 49, United States Code- Except as otherwise
expressly provided, whenever in this subtitle an amendment or repeal is
expressed in terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to a section or other
provision of title 49, United States Code.
PART II--PIPELINE SAFETY IMPROVEMENT ACT OF 2002
SEC. 761. IMPLEMENTATION OF INSPECTOR GENERAL RECOMMENDATIONS.
(a) IN GENERAL- Except as otherwise required by this subtitle, the
Secretary shall implement the safety improvement recommendations provided for
in the Department of Transportation Inspector General's Report
(RT-2000-069).
(b) REPORTS BY THE SECRETARY- Not later than 90 days after the date of
enactment of this Act, and every 90 days thereafter until each of the
recommendations referred to in subsection (a) has been implemented, the
Secretary shall transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report on the specific
actions taken to implement such recommendations.
(c) REPORTS BY THE INSPECTOR GENERAL- The Inspector General shall
periodically transmit to the committees referred to in subsection (b) a report
assessing the Secretary's progress in implementing the recommendations
referred to in subsection (a) and identifying options for the Secretary to
consider in accelerating recommendation implementation.
SEC. 762. NTSB SAFETY RECOMMENDATIONS.
(a) IN GENERAL- The Secretary of Transportation, the Administrator of
Research and Special Program Administration, and the Director of the Office of
Pipeline Safety shall fully comply with section 1135 of title 49, United
States Code, to ensure timely responsiveness to National Transportation Safety
Board recommendations about pipeline safety.
(b) PUBLIC AVAILABILITY- The Secretary, Administrator, or Director,
respectively, shall make a copy of each recommendation on pipeline safety and
response, as described in sections 1135 (a) and (b) of title 49, United States
Code, available to the public at reasonable cost.
(c) REPORTS TO CONGRESS- The Secretary, Administrator, or Director,
respectively, shall submit to the Congress by January 1 of each year a report
containing each recommendation on pipeline safety made by the Board during the
prior year and a copy of the response to each such recommendation.
SEC. 763. QUALIFICATIONS OF PIPELINE PERSONNEL.
(a) QUALIFICATION PLAN- Each pipeline operator shall make available to
the Secretary of Transportation, or, in the case of an intrastate pipeline
facility operator, the appropriate State regulatory agency, a plan that is
designed to enhance the qualifications of pipeline personnel and to reduce the
likelihood of accidents and injuries. The plan shall be made available not
more than 6 months after the date of enactment of this Act, and the operator
shall revise or update the plan as appropriate.
(b) REQUIREMENTS- The enhanced qualification plan shall include, at a
minimum, criteria to demonstrate the ability of an individual to safely and
properly perform tasks identified under section 60102 of title 49, United
States Code. The plan shall also provide for training and periodic
reexamination of pipeline personnel qualifications and provide for
requalification as appropriate. The Secretary, or, in the case of an
intrastate pipeline facility operator, the appropriate State regulatory
agency, may review and certify the plans to determine if they are sufficient
to provide a safe operating environment and shall periodically review the
plans to ensure the continuation of a safe operation. The Secretary may
establish minimum standards for pipeline personnel training and evaluation,
which may include written examination, oral examination, work performance
history review, observation during performance on the job, on the job
training, simulations, or other forms of assessment.
(1) IN GENERAL- The Secretary shall submit a report to the Congress
evaluating the effectiveness of operator qualification and training efforts,
including--
(A) actions taken by inspectors;
(B) recommendations made by inspectors for changes to operator
qualification and training programs; and
(C) industry and employee organization responses to those actions
and recommendations.
(2) CRITERIA- The Secretary may establish criteria for use in
evaluating and reporting on operator qualification and training for purposes
of this subsection.
(3) DUE DATE- The Secretary shall submit the report required by
paragraph (1) to the Congress 3 years after the date of enactment of this
Act.
SEC. 764. PIPELINE INTEGRITY INSPECTION PROGRAM.
Section 60109 is amended by adding at the end the following:
`(c) Integrity Management-
`(1) GENERAL REQUIREMENT- The Secretary shall promulgate regulations
requiring operators of hazardous liquid pipelines and natural gas
transmission pipelines to evaluate the risks to the operator's pipeline
facilities in areas identified pursuant to subsection (a)(1), and to adopt
and implement a program for integrity management that reduces the risk of an
incident in those areas. The regulations shall be issued no later than 1
year after the Secretary has issued standards pursuant to subsections (a)
and (b) of this section or by December 31, 2003, whichever is
sooner.
`(2) STANDARDS FOR PROGRAM- In promulgating regulations under this
section, the Secretary shall require an operator's integrity management plan
to be based on risk analysis and each plan shall include, at a
minimum--
`(A) periodic assessment of the integrity of the pipeline through
methods including internal inspection, pressure testing, direct
assessment, or other effective methods. The assessment period shall be no
less than every 5 years unless the Department of Transportation Inspector
General, after consultation with the Secretary determines there is not a
sufficient capability or it is deemed unnecessary because of more
technically appropriate monitoring or creates undue interruption of
necessary supply to fulfill the requirements under this
paragraph;
`(B) clearly defined criteria for evaluating the results of the
periodic assessment methods carried out under subparagraph (A) and
procedures to ensure identified problems are corrected in a timely manner;
and
`(C) measures, as appropriate, that prevent and mitigate
unintended releases, such as leak detection, integrity evaluation,
restrictive flow devices, or other measures.
`(3) CRITERIA FOR PROGRAM STANDARDS- In deciding how frequently the
integrity assessment methods carried out under paragraph (2)(A) must be
conducted, an operator shall take into account the potential for new defects
developing or previously identified structural defects caused by
construction or installation, the operational characteristics of the
pipeline, and leak history. In addition, the Secretary may establish a
minimum testing requirement for operators of pipelines to conduct internal
inspections.
`(4) STATE ROLE- A State authority that has an agreement in effect
with the Secretary under section 60106 is authorized to review and assess an
operator's risk analyses and integrity management plans required under this
section for interstate pipelines located in that State. The reviewing State
authority shall provide the Secretary with a written assessment of the
plans, make recommendations, as appropriate, to address safety concerns not
adequately addressed in the operator's plans, and submit documentation
explaining the State-proposed plan revisions. The Secretary shall carefully
consider the State's proposals and work in consultation with the States and
operators to address safety concerns.
`(5) MONITORING IMPLEMENTATION- The Secretary of Transportation
shall review the risk analysis and program for integrity management required
under this section and provide for continued monitoring of such plans. Not
later than 2 years after the implementation of integrity management plans
under this section, the Secretary shall complete an assessment and
evaluation of the effects on safety and the environment of extending all of
the requirements mandated by the regulations described in paragraph (1) to
additional areas. The Secretary shall submit the assessment and evaluation
to Congress along with any recommendations to improve and expand the
utilization of integrity management plans.
`(6) OPPORTUNITY FOR LOCAL INPUT ON INTEGRITY MANAGEMENT- Within 18
months after the date of enactment of the Pipeline Safety Improvement Act of
2002, the Secretary shall, by regulation, establish a process for raising
and addressing local safety concerns about pipeline integrity and the
operator's pipeline integrity plan. The process shall include--
`(A) a requirement that an operator of a hazardous liquid or
natural gas transmission pipeline facility provide information about the
risk analysis and integrity management plan required under this section to
local officials in a State in which the facility is located;
`(B) a description of the local officials required to be informed,
the information that is to be provided to them and the manner, which may
include traditional or electronic means, in which it is
provided;
`(C) the means for receiving input from the local officials that
may include a public forum sponsored by the Secretary or by the State, or
the submission of written comments through traditional or electronic
means;
`(D) the extent to which an operator of a pipeline facility must
participate in a public forum sponsored by the Secretary or in another
means for receiving input from the local officials or in the evaluation of
that input; and
`(E) the manner in which the Secretary will notify the local
officials about how their concerns are being addressed.'.
SEC. 765. ENFORCEMENT.
(a) IN GENERAL- Section 60112 is amended--
(1) by striking subsection (a) and inserting the
following:
`(a) GENERAL AUTHORITY- After notice and an opportunity for a hearing,
the Secretary of Transportation may decide a pipeline facility is hazardous if
the Secretary decides that--
`(1) operation of the facility is or would be hazardous to life,
property, or the environment; or
`(2) the facility is, or would be, constructed or operated, or a
component of the facility is, or would be, constructed or operated with
equipment, material, or a technique that the Secretary decides is hazardous
to life, property, or the environment.'; and
(2) by striking `is hazardous,' in subsection (d) and inserting `is,
or would be, hazardous,'.
SEC. 766. PUBLIC EDUCATION, EMERGENCY PREPAREDNESS, AND COMMUNITY
RIGHT-TO-KNOW.
(a) Section 60116 is amended to read as follows:
`Sec. 60116. Public education, emergency preparedness, and community
right-to-know
`(a) PUBLIC EDUCATION PROGRAMS- (1) Each owner or operator of a gas or
hazardous liquid pipeline facility shall carry out a continuing program to
educate the public on the use of a one-call notification system prior to
excavation and other damage prevention activities, the possible hazards
associated with unintended releases from the pipeline facility, the physical
indications that such a release may have occurred, what steps should be taken
for public safety in the event of a pipeline release, and how to report such
an event.
`(2) Within 12 months after the date of enactment of the Pipeline
Safety Improvement Act of 2002, each owner or operator of a gas or hazardous
liquid pipeline facility shall review its existing public education program
for effectiveness and modify the program as necessary. The completed program
shall include activities to advise affected municipalities, school districts,
businesses, and residents of pipeline facility locations. The completed
program shall be submitted to the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency and shall be
periodically reviewed by the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency.
`(3) The Secretary may issue standards prescribing the elements of an
effective public education program. The Secretary may also develop material
for use in the program.
`(b) Emergency Preparedness-
`(1) OPERATOR LIAISON- Within 12 months after the date of enactment
of the Pipeline Safety Improvement Act of 2002, an operator of a gas
transmission or hazardous liquid pipeline facility shall initiate and
maintain liaison with the State emergency response commissions, and local
emergency planning committees in the areas of pipeline right-of-way,
established under section 301 of the Emergency Planning and Community
Right-To-Know Act of 1986 (42 U.S.C. 11001) in each State in which it
operates.
`(2) INFORMATION- An operator shall, upon request, make available to
the State emergency response commissions and local emergency planning
committees, and shall make available to the Office of Pipeline Safety in a
standardized form for the purpose of providing the information to the
public, the information described in section 60102(d), the operator's
program for integrity management, and information about implementation of
that program. The information about the facility shall also include, at a
minimum--
`(A) the business name, address, telephone number of the operator,
including a 24-hour emergency contact number;
`(B) a description of the facility, including pipe diameter, the
product or products carried, and the operating pressure;
`(C) with respect to transmission pipeline facilities, maps
showing the location of the facility and, when available, any high
consequence areas which the pipeline facility traverses or adjoins and
abuts;
`(D) a summary description of the integrity measures the operator
uses to assure safety and protection for the environment;
and
`(E) a point of contact to respond to questions from emergency
response representative.
`(3) SMALLER COMMUNITIES- In a community without a local emergency
planning committee, the operator shall maintain liaison with the local fire,
police, and other emergency response agencies.
`(4) PUBLIC ACCESS- The Secretary shall prescribe requirements for
public access, as appropriate, to this information, including a requirement
that the information be made available to the public by widely accessible
computerized database.
`(c) COMMUNITY RIGHT-TO-KNOW- Not later than 12 months after the date
of enactment of the Pipeline Safety Improvement Act of 2002, and annually
thereafter, the owner or operator of each gas transmission or hazardous liquid
pipeline facility shall provide to the governing body of each municipality in
which the pipeline facility is located, a map identifying the location of such
facility. The map may be provided in electronic form. The Secretary may
provide technical assistance to the pipeline industry on developing public
safety and public education program content and best practices for program
delivery, and on evaluating the effectiveness of the programs. The Secretary
may also provide technical assistance to State and local officials in applying
practices developed in these programs to their activities to promote pipeline
safety.
`(d) PUBLIC AVAILABILITY OF REPORTS- The Secretary shall--
`(1) make available to the public--
`(A) a safety-related condition report filed by an operator under
section 60102(h);
`(B) a report of a pipeline incident filed by an
operator;
`(C) the results of any inspection by the Office of Pipeline
Safety or a State regulatory official; and
`(D) a description of any corrective action taken in response to a
safety-related condition reported under subparagraph (A), (B), or (C);
and
`(2) prescribe requirements for public access, as appropriate, to
integrity management program information prepared under this chapter,
including requirements that will ensure data accessibility to the greatest
extent feasible.'.
(b) SAFETY CONDITION REPORTS- Section 60102(h)(2) is amended by
striking `authorities.' and inserting `officials, including the local
emergency responders.'.
(c) CONFORMING AMENDMENT- The chapter analysis for chapter 601 is
amended by striking the item relating to section 60116 and inserting the
following:
`60116. Public education, emergency preparedness, community
right-to-know.'.
SEC. 767. PENALTIES.
(a) CIVIL PENALTIES- Section 60122 is amended--
(1) by striking `$25,000' in subsection (a)(1) and inserting
`$500,000';
(2) by striking `$500,000' in subsection (a)(1) and inserting
`$1,000,000';
(3) by adding at the end of subsection (a)(1) the following: `The
preceding sentence does not apply to judicial enforcement action under
section 60120 or 60121.'; and
(4) by striking subsection (b) and inserting the
following:
`(b) PENALTY CONSIDERATIONS- In determining the amount of a civil
penalty under this section--
`(1) the Secretary shall consider--
`(A) the nature, circumstances, and gravity of the violation,
including adverse impact on the environment;
`(B) with respect to the violator, the degree of culpability, any
history of prior violations, the ability to pay, any effect on ability to
continue doing business; and
`(C) good faith in attempting to comply; and
`(2) the Secretary may consider--
`(A) the economic benefit gained from the violation without any
discount because of subsequent damages; and
`(B) other matters that justice requires.'.
(b) EXCAVATOR DAMAGE- Section 60123(d) is amended--
(1) by striking `knowingly and willfully';
(2) by inserting `knowingly and willfully' before `engages' in
paragraph (1); and
(3) striking paragraph (2)(B) and inserting the
following:
`(B) a pipeline facility, is aware of damage, and does not report
the damage promptly to the operator of the pipeline facility and to other
appropriate authorities; or'.
(c) CIVIL ACTIONS- Section 60120(a)(1) is amended to read as
follows:
`(1) On the request of the Secretary of Transportation, the Attorney
General may bring a civil action in an appropriate district court of the
United States to enforce this chapter, including section 60112 of this
chapter, or a regulation prescribed or order issued under this chapter. The
court may award appropriate relief, including a temporary or permanent
injunction, punitive damages, and assessment of civil penalties considering
the same factors as prescribed for the Secretary in an administrative case
under section 60122.'.
SEC. 768. STATE OVERSIGHT ROLE.
(a) STATE AGREEMENTS WITH CERTIFICATION- Section 60106 is
amended--
(1) by striking `GENERAL AUTHORITY- ' in subsection (a) and
inserting `Agreements Without Certification- ';
(2) by redesignating subsections (b), (c), and (d) as subsections
(c), (d), and (e); and
(3) by inserting after subsection (a) the following:
`(b) Agreements With Certification-
`(1) IN GENERAL- If the Secretary accepts a certification under
section 60105 of this title and makes the determination required under this
subsection, the Secretary may make an agreement with a State authority
authorizing it to participate in the oversight of interstate pipeline
transportation. Each such agreement shall include a plan for the State
authority to participate in special investigations involving incidents or
new construction and allow the State authority to participate in other
activities overseeing interstate pipeline transportation or to assume
additional inspection or investigatory duties. Nothing in this section
modifies section 60104(c) or authorizes the Secretary to delegate the
enforcement of safety standards prescribed under this chapter to a State
authority.
`(2) DETERMINATIONS REQUIRED- The Secretary may not enter into an
agreement under this subsection, unless the Secretary determines
that--
`(A) the agreement allowing participation of the State authority
is consistent with the Secretary's program for inspection and consistent
with the safety policies and provisions provided under this
chapter;
`(B) the interstate participation agreement would not adversely
affect the oversight responsibilities of intrastate pipeline
transportation by the State authority;
`(C) the State is carrying out a program demonstrated to promote
preparedness and risk prevention activities that enable communities to
live safely with pipelines;
`(D) the State meets the minimum standards for State one-call
notification set forth in chapter 61; and
`(E) the actions planned under the agreement would not impede
interstate commerce or jeopardize public safety.
`(3) EXISTING AGREEMENTS- If requested by the State authority, the
Secretary shall authorize a State authority which had an interstate
agreement in effect after January 1999, to oversee interstate pipeline
transportation pursuant to the terms of that agreement until the Secretary
determines that the State meets the requirements of paragraph (2) and
executes a new agreement, or until December 31, 2003, whichever is sooner.
Nothing in this paragraph shall prevent the Secretary, after affording the
State notice, hearing, and an opportunity to correct any alleged
deficiencies, from terminating an agreement that was in effect before
enactment of the Pipeline Safety Improvement Act of 2002 if--
`(A) the State authority fails to comply with the terms of the
agreement;
`(B) implementation of the agreement has resulted in a gap in the
oversight responsibilities of intrastate pipeline transportation by the
State authority; or
`(C) continued participation by the State authority in the
oversight of interstate pipeline transportation has had an adverse impact
on pipeline safety.'.
(b) ENDING AGREEMENTS- Subsection (e) of section 60106, as
redesignated by subsection (a), is amended to read as follows:
`(1) PERMISSIVE TERMINATION- The Secretary may end an agreement
under this section when the Secretary finds that the State authority has not
complied with any provision of the agreement.
`(2) MANDATORY TERMINATION OF AGREEMENT- The Secretary shall end an
agreement for the oversight of interstate pipeline transportation if the
Secretary finds that--
`(A) implementation of such agreement has resulted in a gap in the
oversight responsibilities of intrastate pipeline transportation by the
State authority;
`(B) the State actions under the agreement have failed to meet the
requirements under subsection (b); or
`(C) continued participation by the State authority in the
oversight of interstate pipeline transportation would not promote pipeline
safety.
`(3) PROCEDURAL REQUIREMENTS- The Secretary shall give the notice
and an opportunity for a hearing to a State authority before ending an
agreement under this section. The Secretary may provide a State an
opportunity to correct any deficiencies before ending an agreement. The
finding and decision to end the agreement shall be published in the Federal
Register and may not become effective for at least 15 days after the date of
publication unless the Secretary finds that continuation of an agreement
poses an imminent hazard.'.
SEC. 769. IMPROVED DATA AND DATA AVAILABILITY.
(a) IN GENERAL- Within 12 months after the date of enactment of this
Act, the Secretary shall develop and implement a comprehensive plan for the
collection and use of gas and hazardous liquid pipeline data to revise the
causal categories on the incident report forms to eliminate overlapping and
confusing categories and include subcategories. The plan shall include
components to provide the capability to perform sound incident trend analysis
and evaluations of pipeline operator performance using normalized accident
data.
(b) Report of Releases Exceeding 5 Gallons- Section 60117(b) is
amended--
(1) by inserting `(1)' before `To';
(2) redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B);
(3) inserting before the last sentence the following:
`(2) A person owning or operating a hazardous liquid pipeline facility
shall report to the Secretary each release to the environment greater than 5
gallons of the hazardous liquid or carbon dioxide transported. This section
applies to releases from pipeline facilities regulated under this chapter. A
report must include the location of the release, fatalities and personal
injuries, type of product, amount of product release, cause or causes of the
release, extent of damage to property and the environment, and the response
undertaken to clean up the release.
`(3) During the course of an incident investigation, a person owning
or operating a pipeline facility shall make records, reports, and information
required under subsection (a) of this section or other reasonably described
records, reports, and information relevant to the incident investigation,
available to the Secretary within the time limits prescribed in a written
request.'; and
(4) indenting the first word of the last sentence and inserting
`(4)' before `The Secretary' in that sentence.
(c) PENALTY AUTHORITIES- (1) Section 60122(a) is amended by striking
`60114(c)' and inserting `60117(b)(3)'.
(2) Section 60123(a) is amended by striking `60114(c),' and inserting
`60117(b)(3),'.
(d) ESTABLISHMENT OF NATIONAL DEPOSITORY- Section 60117 is amended by
adding at the end the following:
`(l) NATIONAL DEPOSITORY- The Secretary shall establish a national
depository of data on events and conditions, including spill histories and
corrective actions for specific incidents, that can be used to evaluate the
risk of, and to prevent, pipeline failures and releases. The Secretary shall
administer the program through the Bureau of Transportation Statistics, in
cooperation with the Research and Special Programs Administration, and shall
make such information available for use by State and local planning and
emergency response authorities and the public.'.
SEC. 770. RESEARCH AND DEVELOPMENT.
(a) Innovative Technology Development-
(1) IN GENERAL- As part of the Department of Transportation's
research and development program, the Secretary of Transportation shall
direct research attention to the development of alternative
technologies--
(A) to expand the capabilities of internal inspection devices to
identify and accurately measure defects and anomalies;
(B) to inspect pipelines that cannot accommodate internal
inspection devices available on the date of enactment;
(C) to develop innovative techniques measuring the structural
integrity of pipelines;
(D) to improve the capability, reliability, and practicality of
external leak detection devices; and
(E) to develop and improve alternative technologies to identify
and monitor outside force damage to pipelines.
(2) COOPERATIVE- The Secretary may participate in additional
technological development through cooperative agreements with trade
associations, academic institutions, or other qualified
organizations.
(b) Pipeline Safety and Reliability Research and Development-
(1) IN GENERAL- The Secretary of Transportation, in coordination
with the Secretary of Energy, shall develop and implement an accelerated
cooperative program of research and development to ensure the integrity of
natural gas and hazardous liquid pipelines. This research and development
program--
(A) shall include materials inspection techniques, risk assessment
methodology, and information systems surety; and
(B) shall complement, and not replace, the research program of the
Department of Energy addressing natural gas pipeline issues existing on
the date of enactment of this Act.
(2) PURPOSE- The purpose of the cooperative research program shall
be to promote pipeline safety research and development to--
(A) ensure long-term safety, reliability and service life for
existing pipelines;
(B) expand capabilities of internal inspection devices to identify
and accurately measure defects and anomalies;
(C) develop inspection techniques for pipelines that cannot
accommodate the internal inspection devices available on the date of
enactment;
(D) develop innovative techniques to measure the structural
integrity of pipelines to prevent pipeline failures;
(E) develop improved materials and coatings for use in
pipelines;
(F) improve the capability, reliability, and practicality of
external leak detection devices;
(G) identify underground environments that might lead to shortened
service life;
(H) enhance safety in pipeline siting and land use;
(I) minimize the environmental impact of pipelines;
(J) demonstrate technologies that improve pipeline safety,
reliability, and integrity;
(K) provide risk assessment tools for optimizing risk mitigation
strategies; and
(L) provide highly secure information systems for controlling the
operation of pipelines.
(3) AREAS- In carrying out this subsection, the Secretary of
Transportation, in coordination with the Secretary of Energy, shall consider
research and development on natural gas, crude oil and petroleum product
pipelines for--
(A) early crack, defect, and damage detection, including real-time
damage monitoring;
(B) automated internal pipeline inspection sensor
systems;
(C) land use guidance and set back management along pipeline
rights-of-way for communities;
(D) internal corrosion control;
(E) corrosion-resistant coatings;
(F) improved cathodic protection;
(G) inspection techniques where internal inspection is not
feasible, including measurement of structural integrity;
(H) external leak detection, including portable real-time video
imaging technology, and the advancement of computerized control center
leak detection systems utilizing real-time remote field data
input;
(I) longer life, high strength, non-corrosive pipeline
materials;
(J) assessing the remaining strength of existing
pipes;
(K) risk and reliability analysis models, to be used to identify
safety improvements that could be realized in the near term resulting from
analysis of data obtained from a pipeline performance tracking
initiative;
(L) identification, monitoring, and prevention of outside force
damage, including satellite surveillance; and
(M) any other areas necessary to ensuring the public safety and
protecting the environment.
(A) IN GENERAL- To coordinate and implement the research and
development programs and activities authorized under this
subsection--
(i) the Secretary of Transportation shall designate, as the
point of contact for the Department of Transportation, an officer of the
Department of Transportation who has been appointed by the President and
confirmed by the Senate; and
(ii) the Secretary of Energy shall designate, as the point of
contact for the Department of Energy, an officer of the Department of
Energy who has been appointed by the President and confirmed by the
Senate.
(i) The point of contact for the Department of Transportation
shall have the primary responsibility for coordinating and overseeing
the implementation of the research, development, and demonstration
program plan under paragraphs (5) and (6).
(ii) The points of contact shall jointly assist in arranging
cooperative agreements for research, development and demonstration
involving their respective Departments, national laboratories,
universities, and industry research organizations.
(5) RESEARCH AND DEVELOPMENT PROGRAM PLAN- Within 240 days after the
date of enactment of this Act, the Secretary of Transportation, in
coordination with the Secretary of Energy and the Pipeline Integrity
Technical Advisory Committee, shall prepare and submit to the Congress a
5-year program plan to guide activities under this subsection. In preparing
the program plan, the Secretary shall consult with appropriate
representatives of the natural gas, crude oil, and petroleum product
pipeline industries to select and prioritize appropriate project proposals.
The Secretary may also seek the advice of utilities, manufacturers,
institutions of higher learning, Federal agencies, the pipeline research
institutions, national laboratories, State pipeline safety officials,
environmental organizations, pipeline safety advocates, and professional and
technical societies.
(6) IMPLEMENTATION- The Secretary of Transportation shall have
primary responsibility for ensuring the 5-year plan provided for in
paragraph (5) is implemented as intended. In carrying out the research,
development, and demonstration activities under this paragraph, the
Secretary of Transportation and the Secretary of Energy may use, to the
extent authorized under applicable provisions of law, contracts, cooperative
agreements, cooperative research and development agreements under the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.),
grants, joint ventures, other transactions, and any other form of agreement
available to the Secretary consistent with the recommendations of the
Advisory Committee.
(7) REPORTS TO CONGRESS- The Secretary of Transportation shall
report to the Congress annually as to the status and results to date of the
implementation of the research and development program plan. The report
shall include the activities of the Departments of Transportation and
Energy, the national laboratories, universities, and any other research
organizations, including industry research organizations.
SEC. 771. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.
(a) ESTABLISHMENT- The Secretary of Transportation shall enter into
appropriate arrangements with the National Academy of Sciences to establish
and manage the Pipeline Integrity Technical Advisory Committee for the purpose
of advising the Secretary of Transportation and the Secretary of Energy on the
development and implementation of the 5-year research, development, and
demonstration program plan under section 770(b)(5). The Advisory Committee
shall have an ongoing role in evaluating the progress and results of the
research, development, and demonstration carried out under that
section.
(b) MEMBERSHIP- The National Academy of Sciences shall appoint the
members of the Pipeline Integrity Technical Advisory Committee after
consultation with the Secretary of Transportation and the Secretary of Energy.
Members appointed to the Advisory Committee should have the necessary
qualifications to provide technical contributions to the purposes of the
Advisory Committee.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) GAS AND HAZARDOUS LIQUIDS- Section 60125(a) is amended to read as
follows:
`(a) GAS AND HAZARDOUS LIQUID- To carry out this chapter and other
pipeline-related damage prevention activities of this title (except for
section 60107), there are authorized to be appropriated to the Department of
Transportation--$30,000,000 for each of the fiscal years 2003, 2004, and 2005
of which $23,000,000 is to be derived from user fees for fiscal years 2003,
2004, and 2005 collected under section 60301 of this title.'.
(b) GRANTS TO STATES- Section 60125(c) is amended to read as
follows:
`(c) STATE GRANTS- Not more than the following amounts may be
appropriated to the Secretary to carry out section 60107--$20,000,000 for the
fiscal years 2003, 2004, and 2005 of which $18,000,000 is to be derived from
user fees for fiscal years 2003, 2004, and 2005 collected under section 60301
of this title.'.
(c) OIL SPILLS- Section 60125 is amended by redesignating subsections
(d), (e), and (f) as subsections (e), (f), (g) and inserting after subsection
(c) the following:
`(d) OIL SPILL LIABILITY TRUST FUND- Of the amounts available in the
Oil Spill Liability Trust Fund, $8,000,000 shall be transferred to the
Secretary of Transportation, as provided in appropriation Acts, to carry out
programs authorized in this title for each of fiscal years 2003, 2004, and
2005.'.
(d) PIPELINE INTEGRITY PROGRAM- (1) There are authorized to be
appropriated to the Secretary of Transportation for carrying out sections
770(b) and 771 of this subtitle $3,000,000, to be derived from user fees under
section 60301 of title 49, United States Code, for each of the fiscal years
2003 through 2007.
(2) Of the amounts available in the Oil Spill Liability Trust Fund
established by section 9509 of the Internal Revenue Code of 1986 (26 U.S.C.
9509), $3,000,000 shall be transferred to the Secretary of Transportation, as
provided in appropriation Acts, to carry out programs for detection,
prevention and mitigation of oil spills under sections 770(b) and 771 of this
subtitle for each of the fiscal years 2003 through 2007.
(3) There are authorized to be appropriated to the Secretary of Energy
for carrying out sections 770(b) and 771 of this subtitle such sums as may be
necessary for each of the fiscal years 2003 through 2007.
SEC. 773. OPERATOR ASSISTANCE IN INVESTIGATIONS.
(a) IN GENERAL- If the Department of Transportation or the National
Transportation Safety Board investigate an accident, the operator involved
shall make available to the representative of the Department or the Board all
records and information that in any way pertain to the accident (including
integrity management plans and test results), and shall afford all reasonable
assistance in the investigation of the accident.
(b) CORRECTIVE ACTION ORDERS- Section 60112(d) is amended--
(1) by inserting `(1)' after `CORRECTIVE ACTION ORDERS- ';
and
(2) by adding at the end the following:
`(2) If, in the case of a corrective action order issued following an
accident, the Secretary determines that the actions of an employee carrying
out an activity regulated under this chapter, including duties under section
60102(a), may have contributed substantially to the cause of the accident, the
Secretary shall direct the operator to relieve the employee from performing
those activities, reassign the employee, or place the employee on leave until
the earlier of the date on which--
`(A) the Secretary determines, after notice and an opportunity for a
hearing, that the employee's performance of duty in carrying out the
activity did not contribute substantially to the cause of the accident;
or
`(B) the Secretary determines the employee has been re-qualified or
re-trained as provided for in section 763 of the Pipeline Safety Improvement
Act of 2002 and can safely perform those activities.
`(3) Action taken by an operator under paragraph (2) shall be in
accordance with the terms and conditions of any applicable collective
bargaining agreement to the extent it is not inconsistent with the
requirements of this section.'.
SEC. 774. PROTECTION OF EMPLOYEES PROVIDING PIPELINE SAFETY
INFORMATION.
(a) IN GENERAL- Chapter 601 is amended by adding at the end the
following:
`Sec. 60129. Protection of employees providing pipeline safety
information
`(a) DISCRIMINATION AGAINST PIPELINE EMPLOYEES- No pipeline operator
or contractor or subcontractor of a pipeline may discharge an employee or
otherwise discriminate against an employee with respect to compensation,
terms, conditions, or privileges of employment because the employee (or any
person acting pursuant to a request of the employee)--
`(1) provided, caused to be provided, or is about to provide (with
any knowledge of the employer) or cause to be provided to the employer or
Federal Government information relating to any violation or alleged
violation of any order, regulation, or standard of the Research and Special
Programs Administration or any other provision of Federal law relating to
pipeline safety under this chapter or any other law of the United
States;
`(2) has filed, caused to be filed, or is about to file (with any
knowledge of the employer) or cause to be filed a proceeding relating to any
violation or alleged violation of any order, regulation, or standard of the
Administration or any other provision of Federal law relating to pipeline
safety under this chapter or any other law of the United States;
`(3) testified or is about to testify in such a proceeding;
or
`(4) assisted or participated or is about to assist or participate
in such a proceeding.
`(b) DEPARTMENT OF LABOR COMPLAINT PROCEDURE-
`(1) FILING AND NOTIFICATION- A person who believes that he or she
has been discharged or otherwise discriminated against by any person in
violation of subsection (a) may, not later than 90 days after the date on
which such violation occurs, file (or have any person file on his or her
behalf) a complaint with the Secretary of Labor alleging such discharge or
discrimination. Upon receipt of such a complaint, the Secretary of Labor
shall notify, in writing, the person named in the complaint and the
Administrator of the Research and Special Programs Administration of the
filing of the complaint, of the allegations contained in the complaint, of
the substance of evidence supporting the complaint, and of the opportunities
that will be afforded to such person under paragraph (2).
`(2) INVESTIGATION; PRELIMINARY ORDER-
`(A) IN GENERAL- Not later than 60 days after the date of receipt
of a complaint filed under paragraph (1) and after affording the person
named in the complaint an opportunity to submit to the Secretary of Labor
a written response to the complaint and an opportunity to meet with a
representative of the Secretary to present statements from witnesses, the
Secretary of Labor shall conduct an investigation and determine whether
there is reasonable cause to believe that the complaint has merit and
notify in writing the complainant and the person alleged to have committed
a violation of subsection (a) of the Secretary's findings. If the
Secretary of Labor concludes that there is reasonable cause to believe
that a violation of subsection (a) has occurred, the Secretary shall
accompany the Secretary's findings with a preliminary order providing the
relief prescribed by paragraph (3)(B). Not later than 30 days after the
date of notification of findings under this paragraph, either the person
alleged to have committed the violation or the complainant may file
objections to the findings or preliminary order, or both, and request a
hearing on the record. The filing of such objections shall not operate to
stay any reinstatement remedy contained in the preliminary order. Such
hearings shall be conducted expeditiously. If a hearing is not requested
in such 30-day period, the preliminary order shall be deemed a final order
that is not subject to judicial review.
`(i) REQUIRED SHOWING BY COMPLAINANT- The Secretary of Labor
shall dismiss a complaint filed under this subsection and shall not
conduct an investigation otherwise required under subparagraph (A)
unless the complainant makes a prima facie showing that any behavior
described in paragraphs (1) through (4) of subsection (a) was a
contributing factor in the unfavorable personnel action alleged in the
complaint.
`(ii) SHOWING BY EMPLOYER- Notwithstanding a finding by the
Secretary that the complainant has made the showing required under
clause (i), no investigation otherwise required under subparagraph (A)
shall be conducted if the employer demonstrates, by clear and convincing
evidence, that the employer would have taken the same unfavorable
personnel action in the absence of that behavior.
`(iii) CRITERIA FOR DETERMINATION BY SECRETARY- The Secretary
may determine that a violation of subsection (a) has occurred only if
the complainant demonstrates that any behavior described in paragraphs
(1) through (4) of subsection (a) was a contributing factor in the
unfavorable personnel action alleged in the complaint.
`(iv) PROHIBITION- Relief may not be ordered under subparagraph
(A) if the employer demonstrates by clear and convincing evidence that
the employer would have taken the same unfavorable personnel action in
the absence of that behavior.
`(A) DEADLINE FOR ISSUANCE; SETTLEMENT AGREEMENTS- Not later than
120 days after the date of conclusion of a hearing under paragraph (2),
the Secretary of Labor shall issue a final order providing the relief
prescribed by this paragraph or denying the complaint. At any time before
issuance of a final order, a proceeding under this subsection may be
terminated on the basis of a settlement agreement entered into by the
Secretary of Labor, the complainant, and the person alleged to have
committed the violation.
`(B) REMEDY- If, in response to a complaint filed under paragraph
(1), the Secretary of Labor determines that a violation of subsection (a)
has occurred, the Secretary of Labor shall order the person who committed
such violation to--
`(i) take affirmative action to abate the
violation;
`(ii) reinstate the complainant to his or her former position
together with the compensation (including back pay) and restore the
terms, conditions, and privileges associated with his or her employment;
and
`(iii) provide compensatory damages to the
complainant.
If such an order is issued under this paragraph, the Secretary of
Labor, at the request of the complainant, shall assess against the person
whom the order is issued a sum equal to the aggregate amount of all costs
and expenses (including attorney's and expert witness fees) reasonably
incurred, as determined by the Secretary of Labor, by the complainant for,
or in connection with, the bringing the complaint upon which the order was
issued.
`(C) FRIVOLOUS COMPLAINTS- If the Secretary of Labor finds that a
complaint under paragraph (1) is frivolous or has been brought in bad
faith, the Secretary of Labor may award to the prevailing employer a
reasonable attorney's fee not exceeding $1,000.
`(A) APPEAL TO COURT OF APPEALS- Any person adversely affected or
aggrieved by an order issued under paragraph (3) may obtain review of the
order in the United States Court of Appeals for the circuit in which the
violation, with respect to which the order was issued, allegedly occurred
or the circuit in which the complainant resided on the date of such
violation. The petition for review must be filed not later than 60 days
after the date of issuance of the final order of the Secretary of Labor.
Review shall conform to chapter 7 of title 5, United States Code. The
commencement of proceedings under this subparagraph shall not, unless
ordered by the court, operate as a stay of the order.
`(B) LIMITATION ON COLLATERAL ATTACK- An order of the Secretary of
Labor with respect to which review could have been obtained under
subparagraph (A) shall not be subject to judicial review in any criminal
or other civil proceeding.
`(5) ENFORCEMENT OF ORDER BY SECRETARY OF LABOR- Whenever any person
has failed to comply with an order issued under paragraph (3), the Secretary
of Labor may file a civil action in the United States district court for the
district in which the violation was found to occur to enforce such order. In
actions brought under this paragraph, the district courts shall have
jurisdiction to grant all appropriate relief, including, but not to be
limited to, injunctive relief and compensatory damages.
`(6) ENFORCEMENT OF ORDER BY PARTIES-
`(A) COMMENCEMENT OF ACTION- A person on whose behalf an order was
issued under paragraph (3) may commence a civil action against the person
to whom such order was issued to require compliance with such order. The
appropriate United States district court shall have jurisdiction, without
regard to the amount in controversy or the citizenship of the parties, to
enforce such order.
`(B) ATTORNEY FEES- The court, in issuing any final order under
this paragraph, may award costs of litigation (including reasonable
attorney and expert witness fees) to any party whenever the court
determines such award costs is appropriate.
`(c) MANDAMUS- Any nondiscretionary duty imposed by this section shall
be enforceable in a mandamus proceeding brought under section 1361 of title
28, United States Code.
`(d) NONAPPLICABILITY TO DELIBERATE VIOLATIONS- Subsection (a) shall
not apply with respect to an employee of a pipeline, contractor or
subcontractor who, acting without direction from the pipeline contractor or
subcontractor (or such person's agent), deliberately causes a violation of any
requirement relating to pipeline safety under this chapter or any other law of
the United States.
`(e) CONTRACTOR DEFINED- In this section, the term `contractor' means
a company that performs safety-sensitive functions by contract for a
pipeline.'.
(b) CIVIL PENALTY- Section 60122(a) is amended by adding at the end
the following:
`(3) A person violating section 60129, or an order issued thereunder,
is liable to the Government for a civil penalty of not more than $1,000 for
each violation. The penalties provided by paragraph (1) do not apply to a
violation of section 60129 or an order issued thereunder.'.
(c) CONFORMING AMENDMENT- The chapter analysis for chapter 601 is
amended by adding at the end the following:
`60129. Protection of employees providing pipeline safety
information.'.
SEC. 775. STATE PIPELINE SAFETY ADVISORY COMMITTEES.
Within 90 days after receiving recommendations for improvements to
pipeline safety from an advisory committee appointed by the Governor of any
State, the Secretary of Transportation shall respond in writing to the
committee setting forth what action, if any, the Secretary will take on those
recommendations and the Secretary's reasons for acting or not acting upon any
of the recommendations.
SEC. 776. FINES AND PENALTIES.
The Inspector General of the Department of Transportation shall
conduct an analysis of the Department's assessment of fines and penalties on
gas transmission and hazardous liquid pipelines, including the cost of
corrective actions required by the Department in lieu of fines, and, no later
than 6 months after the date of enactment of this Act, shall provide a report
to the Senate Committee on Commerce, Science, and Transportation and the House
Committee on Transportation and Infrastructure on any findings and
recommendations for actions by the Secretary or Congress to ensure the fines
assessed are an effective deterrent for reducing safety risks.
SEC. 777. STUDY OF RIGHTS-OF-WAY.
The Secretary of Transportation is authorized to conduct a study on
how best to preserve environmental resources in conjunction with maintaining
pipeline rights-of-way. The study shall recognize pipeline operators'
regulatory obligations to maintain rights-of-way and to protect public
safety.
SEC. 778. STUDY OF NATURAL GAS RESERVE.
(a) FINDINGS- Congress finds that:
(1) In the last few months, natural gas prices across the country
have tripled.
(2) In California, natural gas prices have increased twenty-fold,
from $3 per million British thermal units to nearly $60 per million British
thermal units.
(3) One of the major causes of these price increases is a lack of
supply, including a lack of natural gas reserves.
(4) The lack of a reserve was compounded by the rupture of an El
Paso Natural Gas Company pipeline in Carlsbad, New Mexico on August 1,
2000.
(5) Improving pipeline safety will help prevent similar accidents
that interrupt the supply of natural gas and will help save
lives.
(6) It is also necessary to find solutions for the lack of natural
gas reserves that could be used during emergencies.
(b) STUDY BY THE NATIONAL ACADEMY OF SCIENCES- The Secretary of Energy
shall request the National Academy of Sciences to--
(A) determine the causes of recent increases in the price of
natural gas, including whether the increases have been caused by problems
with the supply of natural gas or by problems with the natural gas
transmission system;
(B) identify any Federal or State policies that may have
contributed to the price increases; and
(C) determine what Federal action would be necessary to improve
the reserve supply of natural gas for use in situations of natural gas
shortages and price increases, including determining the feasibility and
advisability of a Federal strategic natural gas reserve system;
and
(2) not later than 60 days after the date of enactment of this Act,
submit to Congress a report on the results of the study.
SEC. 779. STUDY AND REPORT ON NATURAL GAS PIPELINE AND STORAGE
FACILITIES IN NEW ENGLAND.
(a) STUDY- The Federal Energy Regulatory Commission, in consultation
with the Department of Energy, shall conduct a study on the natural gas
pipeline transmission network in New England and natural gas storage
facilities associated with that network. In carrying out the study, the
Commission shall consider--
(1) the ability of natural gas pipeline and storage facilities in
New England to meet current and projected demand by gas-fired power
generation plants and other consumers;
(2) capacity constraints during unusual weather periods;
(3) potential constraint points in regional, interstate, and
international pipeline capacity serving New England; and
(4) the quality and efficiency of the Federal environmental review
and permitting process for natural gas pipelines.
(b) REPORT- Not later than 120 days after the date of the enactment of
this Act, the Federal Energy Regulatory Commission shall prepare and submit to
the Senate Committee on Energy and Natural Resources and the appropriate
committee of the House of Representatives a report containing the results of
the study conducted under subsection (a), including recommendations for
addressing potential natural gas transmission and storage capacity problems in
New England.
PART III--PIPELINE SECURITY SENSITIVE INFORMATION
SEC. 781. MEETING COMMUNITY RIGHT TO KNOW WITHOUT SECURITY
RISKS.
Section 60117 is amended by adding at the end the following:
`(l) Withholding Certain Information-
`(1) IN GENERAL- Notwithstanding any other provision of this chapter
requiring the Secretary to provide information obtained by the Secretary or
an officer, employee, or agent in carrying out this chapter to State or
local government officials, the public, or any other person, the Secretary
shall withhold such information if it is information that is described in
section 552(b)(1)(A) of title 5, United States Code.
`(2) CONDITIONAL RELEASE- Notwithstanding paragraph (1), upon the
receipt of assurances satisfactory to the Secretary that the information
will be handled appropriately, the Secretary may provide information
permitted to be withheld under that paragraph--
`(A) to the owner or operator of the affected pipeline
system;
`(B) to an officer, employee or agent of a Federal, State, tribal,
or local government, including a volunteer fire department, concerned with
carrying out this chapter, with protecting the facilities, with protecting
public safety, or with national security issues;
`(C) in an administrative or judicial proceeding brought under
this chapter or an administrative or judicial proceeding that addresses
terrorist actions or threats of such actions; or
`(D) to such other persons as the Secretary determines necessary
to protect public safety and security.
`(3) REPORT TO CONGRESS- The Secretary shall provide an annual
report to the Congress, in appropriate form as determined by the Secretary,
containing a summary of determinations made by the Secretary during the
preceding year to withhold information from release under paragraph
(1).'.
SEC. 782. TECHNICAL ASSISTANCE FOR SECURITY OF PIPELINE
FACILITIES.
The Secretary of Transportation may provide technical assistance to an
operator of a pipeline facility or to State, tribal, or local officials to
prevent or respond to acts of terrorism that may impact the pipeline facility,
including--
(1) actions by the Secretary that support the use of National Guard
or State or Federal personnel to provide additional security for a pipeline
facility at risk of terrorist attack or in response to such an
attack;
(2) use of resources available to the Secretary to develop and
implement security measures for a pipeline facility;
(3) identification of security issues with respect to the operation
of a pipeline facility; and
(4) the provision of information and guidance on security practices
that prevent damage to pipeline facilities from terrorist
attacks.
SEC. 783. CRIMINAL PENALTIES FOR DAMAGING OR DESTROYING A
FACILITY.
Section 60123(b) of title 49, United States Code, is amended--
(1) by striking `or' after `gas pipeline facility' and inserting a
comma; and
(2) by inserting after `liquid pipeline facility' the following: `,
or either an intrastate gas pipeline facility or an intrastate hazardous
liquid pipeline facility that is used in interstate or foreign commerce or
in any activity affecting interstate or foreign commerce'.
DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING
EFFICIENCY
TITLE VIII--FUELS AND VEHICLES
Subtitle A--CAFE Standards, Alternative Fuels, and Advanced
Technology
SEC. 801. INCREASED FUEL ECONOMY STANDARDS.
(a) REQUIREMENT FOR NEW REGULATIONS-
(1) IN GENERAL- The Secretary of Transportation shall issue, under
section 32902 of title 49, United States Code, new regulations setting forth
increased average fuel economy standards for automobiles that are determined
on the basis of the maximum feasible average fuel economy levels for the
automobiles, taking into consideration the matters set forth in subsection
(f) of such section.
(2) TIME FOR ISSUING REGULATIONS-
(A) NON-PASSENGER AUTOMOBILES- For non-passenger automobiles, the
Secretary of Transportation shall issue the final regulations not later
than 15 months after the date of the enactment of this Act.
(B) PASSENGER AUTOMOBILES- For passenger automobiles, the
Secretary of Transportation shall issue--
(i) the proposed regulations not later than 180 days after the
date of the enactment of this Act; and
(ii) the final regulations not later than 2 years after that
date.
(b) PHASED INCREASES- The regulations issued pursuant to subsection
(a) shall specify standards that take effect successively over several vehicle
model years not exceeding 15 vehicle model years.
(c) CLARIFICATION OF AUTHORITY TO AMEND PASSENGER AUTOMOBILE STANDARD-
Section 32902(b) of title 49, United States Code, is amended by inserting
before the period at the end the following: `or such other number as the
Secretary prescribes under subsection (c)'.
(d) ENVIRONMENTAL ASSESSMENT- When issuing final regulations setting
forth increased average fuel economy standards under this section, the
Secretary of Transportation shall also issue an environmental assessment of
the effects of the implementation of the increased standards on the
environment under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Department of Transportation for fiscal year 2003, to
remain available until expended, $2,000,000 to carry out this section.
SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL INCREASE IN FUEL
ECONOMY STANDARDS.
(a) CONDITION FOR APPLICABILITY- If the Secretary of Transportation
fails to issue final regulations with respect to non-passenger automobiles
under section 801, or fails to issue final regulations with respect to
passenger automobiles under such section, on or before the date by which such
final regulations are required by such section to be issued, respectively,
then this section shall apply with respect to a bill described in subsection
(b).
(b) BILL- A bill referred to in this subsection is a bill that
satisfies the following requirements:
(1) INTRODUCTION- The bill is introduced by one or more Members of
Congress not later than 60 days after the date referred to in subsection
(a).
(2) TITLE- The title of the bill is as follows: `A bill to establish
new average fuel economy standards for certain motor vehicles.'.
(3) TEXT- The bill provides after the enacting clause only the text
specified in subparagraph (A) or (B) or any provision described in
subparagraph (C), as follows:
(A) NON-PASSENGER AUTOMOBILES- In the case of a bill relating to a
failure timely to issue final regulations relating to non-passenger
automobiles, the following text:
`That, section 32902 of title 49, United States Code, is amended by
adding at the end the following new subsection:
`(X) NON-PASSENGER AUTOMOBILES- The average fuel economy
standard for non-passenger automobiles manufactured by a manufacturer in a
model year after model year XX shall be XX miles per gallon.',
the first blank space being filled in with a subsection designation, the
second blank space being filled in with the number of a year, and the third
blank space being filled in with a number.
(B) PASSENGER AUTOMOBILES- In the case of a bill relating to a
failure timely to issue final regulations relating to passenger
automobiles, the following text:
`That, section 32902(b) of title 49, United States Code, is amended to
read as follows:
`(b) PASSENGER AUTOMOBILES- Except as provided in this section, the
average fuel economy standard for passenger automobiles manufactured by a
manufacturer in a model year after model year XX shall be XX
miles per gallon.', the first blank space being filled in with the number of a
year and the second blank space being filled in with a number.
(C) SUBSTITUTE TEXT- Any text substituted by an amendment that is
in order under subsection (c)(3).
(c) EXPEDITED PROCEDURES- A bill described in subsection (b) shall be
considered in a House of Congress in accordance with the procedures provided
for the consideration of joint resolutions in paragraphs (3) through (8) of
section 8066(c) of the Department of Defense Appropriations Act, 1985 (as
contained in section 101(h) of Public Law 98-473; 98 Stat. 1936), with the
following exceptions:
(1) REFERENCES TO RESOLUTION- The references in such paragraphs to a
resolution shall be deemed to refer to the bill described in subsection
(b).
(2) COMMITTEES OF JURISDICTION- The committees to which the bill is
referred under this subsection shall--
(A) in the Senate, be the Committee on Commerce, Science, and
Transportation; and
(B) in the House of Representatives, be the Committee on Energy
and Commerce.
(A) AMENDMENTS IN ORDER- Only four amendments to the bill are in
order in each House, as follows:
(i) Two amendments proposed by the majority leader of that
House.
(ii) Two amendments proposed by the minority leader of that
House.
(B) FORM AND CONTENT- To be in order under subparagraph (A), an
amendment shall propose to strike all after the enacting clause and
substitute text that only includes the same text as is proposed to be
stricken except for one or more different numbers in the
text.
(C) DEBATE, ET CETERA- Subparagraph (B) of section 8066(c)(5) of
the Department of Defense Appropriations Act, 1985 (98 Stat. 1936) shall
apply to the consideration of each amendment proposed pursuant to
subparagraph (A) of this paragraph in the same manner as such subparagraph
(B) applies to debatable motions.
SEC. 803. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE
AVERAGE FUEL ECONOMY.
Section 32902(f) of title 49, United States Code, is amended to read
as follows:
`(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE AVERAGE FUEL
ECONOMY- When deciding maximum feasible average fuel economy under this
section, the Secretary of Transportation shall consider the following
matters:
`(1) Technological feasibility.
`(2) Economic practicability.
`(3) The effect of other motor vehicle standards of the Government
on fuel economy.
`(4) The need of the United States to conserve energy.
`(5) The desirability of reducing United States dependence on
imported oil.
`(6) The effects of the average fuel economy standards on motor
vehicle and passenger safety.
`(7) The effects of increased fuel economy on air
quality.
`(8) The adverse effects of average fuel economy standards on the
relative competitiveness of manufacturers.
`(9) The effects of compliance with average fuel economy standards
on levels of employment in the United States.
`(10) The cost and lead time necessary for the introduction of the
necessary new technologies.
`(11) The potential for advanced technology vehicles, such as hybrid
and fuel cell vehicles, to contribute to the achievement of significant
reductions in fuel consumption.
`(12) The extent to which the necessity for vehicle manufacturers to
incur near-term costs to comply with the average fuel economy standards
adversely affects the availability of resources for the development of
advanced technology for the propulsion of motor vehicles.
`(13) The report of the National Research Council that is entitled
`Effectiveness and Impact of Corporate Average Fuel Economy Standards',
issued in January 2002.'.
SEC. 804. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE
FUELED VEHICLES.
Section 32906(a)(1) of title 49, United States Code, is
amended--
(1) in subparagraph (A), by striking `1993-2004' and inserting `1993
through 2008'; and
(2) in subparagraph (B), by striking `2005-2008' and inserting `2009
through 2012'.
SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY
TRUCKS.
(a) VEHICLE FLEETS NOT COVERED BY REQUIREMENT IN ENERGY POLICY ACT OF
1992-
(1) HYBRID VEHICLES- The head of each agency of the executive branch
shall coordinate with the Administrator of General Services to ensure that
only hybrid vehicles are procured by or for each agency fleet of light duty
trucks that is not in a fleet of vehicles to which section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) applies.
(2) WAIVER AUTHORITY- The head of an agency, in consultation with
the Administrator, may waive the applicability of the policy regarding the
procurement of hybrid vehicles in paragraph (1) to that agency to the extent
that the head of that agency determines necessary--
(A) to meet specific requirements of the agency for capabilities
of light duty trucks;
(B) to procure vehicles consistent with the standards applicable
to the procurement of fleet vehicles for the Federal
Government;
(C) to adjust to limitations on the commercial availability of
light duty trucks that are hybrid vehicles; or
(D) to avoid the necessity of procuring a hybrid vehicle for the
agency when each of the hybrid vehicles available for meeting the
requirements of the agency has a cost to the United States that exceeds
the costs of comparable nonhybrid vehicles by a factor that is
significantly higher than the difference between--
(i) the real cost of the hybrid vehicle to retail purchasers,
taking into account the benefit of any tax incentives available to
retail purchasers for the purchase of the hybrid vehicle;
and
(ii) the costs of the comparable nonhybrid vehicles to retail
purchasers.
(3) APPLICABILITY TO PROCUREMENTS AFTER FISCAL YEAR 2004- This
subsection applies with respect to procurements of light duty trucks in
fiscal year 2005 and subsequent fiscal years.
(b) REQUIREMENT TO EXCEED REQUIREMENT IN ENERGY POLICY ACT OF 1992-
(1) LIGHT DUTY TRUCKS- The head of each agency of the executive
branch shall coordinate with the Administrator of General Services to ensure
that, of the light duty trucks procured in fiscal years after fiscal year
2004 for the fleets of light duty vehicles of the agency to which section
303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies--
(A) 5 percent of the total number of such trucks that are procured
in each of fiscal years 2005 and 2006 are alternative fueled vehicles or
hybrid vehicles; and
(B) 10 percent of the total number of such trucks that are
procured in each fiscal year after fiscal year 2006 are alternative fueled
vehicles or hybrid vehicles.
(2) COUNTING OF TRUCKS- Light duty trucks acquired for an agency of
the executive branch that are counted to comply with section 303 of the
Energy Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year shall be
counted to determine the total number of light duty trucks procured for that
agency for that fiscal year for the purposes of paragraph (1), but shall not
be counted to satisfy the requirement in that paragraph.
(c) DEFINITIONS- In this section:
(1) HYBRID VEHICLE- The term `hybrid vehicle' means--
(A) a motor vehicle that draws propulsion energy from onboard
sources of stored energy that are both--
(i) an internal combustion or heat engine using combustible
fuel; and
(ii) a rechargeable energy storage system; and
(B) any other vehicle that is defined as a hybrid vehicle in
regulations prescribed by the Secretary of Energy for the administration
of title III of the Energy Policy Act of 1992.
(2) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled
vehicle' has the meaning given that term in section 301 of the Energy Policy
Act of 1992 (42 U.S.C. 13211).
(d) INAPPLICABILITY TO DEPARTMENT OF DEFENSE- This section does not
apply to the Department of Defense, which is subject to comparable
requirements under section 318 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1055; 10 U.S.C. 2302
note).
SEC. 806. USE OF ALTERNATIVE FUELS.
(a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL FUELED VEHICLES- The
head of each agency of the executive branch shall coordinate with the
Administrator of General Services to ensure that, not later than January 1,
2009, the fuel actually used in the fleet of dual fueled vehicles used by the
agency is an alternative fuel.
(A) AUTHORITY- If the Secretary of Transportation determines that
not all of the dual fueled vehicles can operate on alternative fuels at
all times, the Secretary may waive the requirement of subsection (a) in
part, but only to the extent that--
(i) not later than January 1, 2009, not less than 50 percent of
the total annual volume of fuel used in the dual fueled vehicles shall
be alternative fuels; and
(ii) not later than January 1, 2011, not less than 75 percent of
the total annual volume of fuel used in the dual fueled vehicles shall
be alternative fuels.
(B) EXPIRATION- In no case may a waiver under subparagraph (A)
remain in effect after December 31, 2012.
(2) REGIONAL FUEL AVAILABILITY WAIVER- The Secretary may waive the
applicability of the requirement of subsection (a) to vehicles used by an
agency in a particular geographic area where the alternative fuel otherwise
required to be used in the vehicles is not reasonably available to retail
purchasers of the fuel, as certified to the Secretary by the head of the
agency.
(c) DEFINITIONS- In this section:
(1) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning
given that term in section 32901(a)(1) of title 49, United States
Code.
(2) DUAL FUELED VEHICLE- The term `dual fueled vehicle' has the
meaning given the term `dual fueled automobile' in section 32901(a)(8) of
title 49, United States Code.
(3) FLEET- The term `fleet', with respect to dual fueled vehicles,
has the meaning that is given that term with respect to light duty motor
vehicles in section 301(9) of the Energy Policy Act of 1992 (42 U.S.C.
13211(9)).
SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.
(a) EXPANSION OF SCOPE- The Secretary of Energy shall expand the
research and development program of the Department of Energy on advanced
technologies for improving the environmental cleanliness of vehicles to
emphasize research and development on the following:
(1) Fuel cells, including--
(A) high temperature membranes for fuel cells; and
(B) fuel cell auxiliary power systems.
(3) Advanced vehicle engine and emission control systems.
(4) Advanced batteries and power electronics for hybrid
vehicles.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Department of Energy for fiscal year 2003, the amount of
$225,000,000 for carrying out the expanded research and development program
provided for under this section.
SEC. 808. DIESEL FUELED VEHICLES.
(a) DIESEL COMBUSTION AND AFTER TREATMENT TECHNOLOGIES- The Secretary
of Energy shall accelerate research and development directed toward the
improvement of diesel combustion and after treatment technologies for use in
diesel fueled motor vehicles.
(1) COMPLIANCE WITH TIER 2 EMISSION STANDARDS BY 2010- The Secretary
shall carry out subsection (a) with a view to developing and demonstrating
diesel technology meeting tier 2 emission standards not later than
2010.
(2) TIER 2 EMISSION STANDARDS DEFINED- In this subsection, the term
`tier 2 emission standards' means the motor vehicle emission standards
promulgated by the Administrator of the Environmental Protection Agency on
February 10, 2000, under sections 202 and 211 of the Clean Air Act to apply
to passenger cars, light trucks, and larger passenger vehicles of model
years after the 2003 vehicle model year.
SEC. 809. FUEL CELL DEMONSTRATION.
(a) PROGRAM REQUIRED- The Secretary of Energy and the Secretary of
Defense shall jointly carry out a program to demonstrate--
(1) fuel cell technologies developed in the PNGV and Freedom Car
programs;
(2) fuel cell technologies developed in research and development
programs of the Department of Defense; and
(3) follow-on fuel cell technologies.
(b) PURPOSES OF PROGRAM- The purposes of the program are to identify
and support technological advances that are necessary to achieve accelerated
availability of fuel cell technology for use both for nonmilitary and military
purposes.
(c) COOPERATION WITH INDUSTRY-
(1) IN GENERAL- The demonstration program shall be carried out in
cooperation with industry, including the automobile manufacturing industry
and the automotive systems and component suppliers industry.
(2) COST SHARING- The Secretary of Energy and the Secretary of
Defense shall provide for industry to bear, in cash or in kind, at least
one-half of the total cost of carrying out the demonstration
program.
(d) DEFINITIONS- In this section:
(1) PNGV PROGRAM- The term `PNGV program' means the Partnership for
a New Generation of Vehicles, a cooperative program engaged in by the
Departments of Commerce, Energy, Transportation, and Defense, the
Environmental Protection Agency, the National Science Foundation, and the
National Aeronautics and Space Administration with the automotive industry
for the purpose of developing a new generation of vehicles with capabilities
resulting in significantly improved fuel efficiency together with low
emissions without compromising the safety, performance, affordability, or
utility of the vehicles.
(2) FREEDOM CAR PROGRAM- The term `Freedom Car program' means a
cooperative research program engaged in by the Department of Energy with the
United States Council on Automotive Research as a follow-on to the PNGV
program.
SEC. 810. BUS REPLACEMENT.
(a) REQUIREMENT FOR STUDY- The Secretary of Transportation shall carry
out a study to determine how best to provide for converting the composition of
the fleets of buses in metropolitan areas and school systems from buses
utilizing current diesel technology to--
(1) buses that draw propulsion from onboard fuel cells;
(2) buses that are hybrid electric vehicles;
(3) buses that are fueled by clean-burning fuels, such as renewable
fuels (including agriculture-based biodiesel fuels), natural gas, and
ultra-low sulphur diesel;
(4) buses that are powered by clean diesel engines: or
(5) an assortment of buses described in paragraphs (1), (2), (3),
and (4).
(1) REQUIREMENT- The Secretary of Transportation shall submit a
report on the results of the study on bus fleet conversions under subsection
(a) to Congress.
(2) CONTENT- The report on bus fleet conversions shall include the
following:
(A) An assessment of effectuating conversions by the following
means:
(i) Replacement of buses.
(ii) Replacement of power and propulsion systems in buses
utilizing current diesel technology.
(B) Feasible schedules for carrying out the
conversions.
(C) Estimated costs of carrying out the conversions.
(D) An assessment of the benefits of the conversions in terms of
emissions control and reduction of fuel consumption.
SEC. 811. AVERAGE FUEL ECONOMY STANDARDS FOR PICKUP TRUCKS.
(a) IN GENERAL- Section 32902(a) of title 49, United States Code, is
amended--
(1) by inserting `(1)' after the after `AUTOMOBILES- ';
and
(2) by adding at the end the following new paragraph:
`(2) The average fuel economy standard for pickup trucks manufactured
by a manufacturer in a model year after model year 2004 shall be no higher
than 20.7 miles per gallon. No average fuel economy standard prescribed under
another provision of this section shall apply to pickup trucks.'.
(b) DEFINITION OF PICKUP TRUCK- Section 32901(a) of such title is
amended by adding at the end the following new paragraph:
`(17) `pickup truck' has the meaning given that term in regulations
prescribed by the Secretary for the administration of this chapter, as in
effect on January 1, 2002, except that such term shall also include any
additional vehicle that the Secretary defines as a pickup truck in
regulations prescribed for the administration of this chapter after such
date.'.
SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR ALTERNATIVE FUEL
VEHICLES.
Section 102(a)(1) of title 23, United States Code, is amended by
inserting after `required' the following: `(unless, in the discretion of the
State transportation department, the vehicle is being operated on, or is being
fueled by, an alternative fuel (as defined in section 301(2) of the Energy
Policy Act of 1992 (42 U.S.C. 13211(2)))'.
SEC. 813. DATA COLLECTION.
Section 205 of the Department of Energy Organization Act (42 U.S.C.
7135) is amended by adding at the end the following:
`(m) In order to improve the ability to evaluate the effectiveness of
the Nation's renewable fuels mandate, the Administrator shall conduct and
publish the results of a survey of renewable fuels consumption in the motor
vehicle fuels market in the United States monthly, and in a manner designed to
protect the confidentiality of individual responses. In conducting the survey,
the Administrator shall collect information retrospectively to 1998, both on a
national basis and a regional basis, including--
(1) the quantity of renewable fuels produced;
(2) the cost of production;
(3) the cost of blending and marketing;
(4) the quantity of renewable fuels blended;
(5) the quantity of renewable fuels imported; and
SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary of Energy and the Secretary of
Transportation shall jointly establish a pilot program for awarding grants on
a competitive basis to eligible entities for the demonstration and commercial
application of alternative fuel school buses and ultra-low sulfur diesel
school buses.
(b) REQUIREMENTS- Not later than 3 months after the date of the
enactment of this Act, the Secretary shall establish and publish in the
Federal Register grant requirements on eligibility for assistance, and on
implementation of the program established under subsection (a), including
certification requirements to ensure compliance with this subtitle.
(c) SOLICITATION- Not later than 6 months after the date of the
enactment of this Act, the Secretary shall solicit proposals for grants under
this section.
(d) ELIGIBLE RECIPIENTS- A grant shall be awarded under this section
only--
(1) to a local governmental entity responsible for providing school
bus service for one or more public school systems; or
(2) jointly to an entity described in paragraph (1) and a
contracting entity that provides school bus service to the public school
system or systems.
(1) IN GENERAL- Grants under this section shall be for the
demonstration and commercial application of technologies to facilitate the
use of alternative fuel school buses and ultra-low sulfur diesel school
buses instead of buses manufactured before model year 1977 and
diesel-powered buses manufactured before model year 1991.
(2) NO ECONOMIC BENEFIT- Other than the receipt of the grant, a
recipient of a grant under this section may not receive any economic benefit
in connection with the receipt of the grant.
(3) PRIORITY OF GRANT APPLICATIONS- The Secretary shall give
priority to awarding grants to applicants who can demonstrate the use of
alternative fuel buses and ultra-low sulfur diesel school buses instead of
buses manufactured before model year 1977.
(f) CONDITIONS OF GRANT- A grant provided under this section shall
include the following conditions:
(1) All buses acquired with funds provided under the grant shall be
operated as part of the school bus fleet for which the grant was made for a
minimum of 5 years.
(2) Funds provided under the grant may only be used--
(A) to pay the cost, except as provided in paragraph (3), of new
alternative fuel school buses or ultra-low sulfur diesel school buses,
including State taxes and contract fees; and
(i) up to 10 percent of the price of the alternative fuel buses
acquired, for necessary alternative fuel infrastructure if the
infrastructure will only be available to the grant recipient;
and
(ii) up to 15 percent of the price of the alternative fuel buses
acquired, for necessary alternative fuel infrastructure if the
infrastructure will be available to the grant recipient and to other bus
fleets.
(3) The grant recipient shall be required to provide at least the
lesser of 15 percent of the total cost of each bus received or $15,000 per
bus.
(4) In the case of a grant recipient receiving a grant to
demonstrate ultra-low sulfur diesel school buses, the grant recipient shall
be required to provide documentation to the satisfaction of the Secretary
that diesel fuel containing sulfur at not more than 15 parts per million is
available for carrying out the purposes of the grant, and a commitment by
the applicant to use such fuel in carrying out the purposes of the
grant.
(g) BUSES- Funding under a grant made under this section may only be
used to demonstrate the use of new alternative fuel school buses or ultra-low
sulfur diesel school buses that--
(1) have a gross vehicle weight greater than 14,000
pounds;
(2) are powered by a heavy duty engine;
(3) in the case of alternative fuel school buses, emit not more
than--
(A) for buses manufactured in model year 2002, 2.5 grams per brake
horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of particulate matter; and
(B) for buses manufactured in model years 2003 through 2006, 1.8
grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of
nitrogen and .01 grams per brake horsepower-hour of particulate matter;
and
(4) in the case of ultra-low sulfur diesel school buses, emit not
more than the lesser of--
(A) the emissions of nonmethane hydrocarbons, oxides of nitrogen,
and particulate matter of the best performing technology of the same class
of ultra-low sulfur diesel school buses commercially available at the time
the grant is made; or
(B) the applicable following amounts--
(i) for buses manufactured in model year 2002 or 2003, 3.0 grams
per brake horsepower-hour of oxides of nitrogen and .01 grams per brake
horsepower-hour of particulate matter; and
(ii) for buses manufactured in model years 2004 through 2006,
2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and
oxides of nitrogen and .01 grams per brake horsepower-hour of
particulate matter.
(h) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the
maximum extent practicable to achieve nationwide deployment of alternative
fuel school buses through the program under this section, and shall ensure a
broad geographic distribution of grant awards, with a goal of no State
receiving more than 10 percent of the grant funding made available under this
section for a fiscal year.
(i) LIMIT ON FUNDING- The Secretary shall provide not less than 20
percent and not more than 25 percent of the grant funding made available under
this section for any fiscal year for the acquisition of ultra-low sulfur
diesel school buses.
(j) DEFINITIONS- For purposes of this section--
(1) the term `alternative fuel school bus' means a bus powered
substantially by electricity (including electricity supplied by a fuel
cell), or by liquefied natural gas, compressed natural gas, liquefied
petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85
percent by volume;
(2) the term `idling' means not turning off an engine while
remaining stationary for more than approximately 3 minutes; and
(3) the term `ultra-low sulfur diesel school bus' means a school bus
powered by diesel fuel which contains sulfur at not more than 15 parts per
million.
(k) REDUCTION OF SCHOOL BUS IDLING- Each local educational agency (as
defined in section 9101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801)) that receives Federal funds under the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged to
develop a policy to reduce the incidence of school buses idling at schools
when picking up and unloading students.
SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.
(a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program
for entering into cooperative agreements with private sector fuel cell bus
developers for the development of fuel cell-powered school buses, and
subsequently with not less than two units of local government using natural
gas-powered school buses and such private sector fuel cell bus developers to
demonstrate the use of fuel cell-powered school buses.
(b) COST SHARING- The non-Federal contribution for activities funded
under this section shall be not less than--
(1) 20 percent for fuel infrastructure development activities;
and
(2) 50 percent for demonstration activities and for development
activities not described in paragraph (1).
(c) FUNDING- No more than $25,000,000 of the amounts authorized under
section 815 may be used for carrying out this section for the period
encompassing fiscal years 2003 through 2006.
(d) REPORTS TO CONGRESS- Not later than 3 years after the date of the
enactment of this Act, and not later than October 1, 2006, the Secretary shall
transmit to the appropriate congressional committees a report that--
(1) evaluates the process of converting natural gas infrastructure
to accommodate fuel cell-powered school buses; and
(2) assesses the results of the development and demonstration
program under this section.
SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of Energy for
carrying out sections 814 and 815, to remain available until
expended--
(1) $50,000,000 for fiscal year 2003;
(2) $60,000,000 for fiscal year 2004;
(3) $70,000,000 for fiscal year 2005; and
(4) $80,000,000 for fiscal year 2006.
SEC. 817. TEMPORARY BIODIESEL CREDIT EXPANSION.
(a) BIODIESEL CREDIT EXPANSION- Section 312(b) of the Energy Policy
Act of 1992 (42 U.S.C. 13220(b)) is amended by striking paragraph (2) and
inserting the following:
`(A) IN GENERAL- A fleet or covered person--
`(i) may use credits allocated under subsection (a) to satisfy
more than 50 percent of the alternative fueled vehicle requirements of a
fleet or covered person under this title, title IV, and title V;
but
`(ii) may use credits allocated under subsection (a) to satisfy
100 percent of the alternative fueled vehicle requirements of a fleet or
covered person under title V for 1 or more of model years 2002 through
2005.
`(B) APPLICABILITY- Subparagraph (A) does not apply to a fleet or
covered person that is a biodiesel alternative fuel provider described in
section 501(a)(2)(A).'.
(b) TREATMENT AS SECTION 508 CREDITS- Section 312(c) of the Energy
Policy Act of 1992 (42 U.S.C. 13220(c)) is amended--
(1) in the subsection heading, by striking `CREDIT NOT' and
inserting `TREATMENT AS'; and
(2) by striking `shall not be considered' and inserting `shall be
treated as'.
(c) ALTERNATIVE FUELED VEHICLE STUDY AND REPORT-
(1) DEFINITIONS- In this subsection:
(A) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning
given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C.
13211).
(B) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled
vehicle' has the meaning given the term in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211).
(C) LIGHT DUTY MOTOR VEHICLE- The term `light duty motor vehicle'
has the meaning given the term in section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211).
(D) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(2) BIODIESEL CREDIT EXTENSION STUDY- As soon as practicable after
the date of enactment of this Act, the Secretary shall conduct a
study--
(A) to determine the availability and cost of light duty motor
vehicles that qualify as alternative fueled vehicles under title V of the
Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.); and
(i) the availability and cost of biodiesel;
with
(ii) the availability and cost of fuels that qualify as
alternative fuels under title V of the Energy Policy Act of 1992 (42
U.S.C. 13251 et seq.).
(3) REPORT- Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that--
(A) describes the results of the study conducted under paragraph
(2); and
(B) includes any recommendations of the Secretary for legislation
to extend the temporary credit provided under subsection (a) beyond model
year 2005.
SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.
Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is
amended--
(1) by striking `or a dual fueled vehicle' and inserting `, a dual
fueled vehicle, or a neighborhood electric vehicle';
(2) by striking `and' at the end of paragraph (13);
(3) by striking the period at the end of subparagraph (14) and
inserting `; and'; and
(4) by adding at the end the following:
`(15) the term `neighborhood electric vehicle' means a motor vehicle
that qualifies as both--
`(A) a low-speed vehicle, as such term is defined in section
571.3(b) of title 49, Code of Federal Regulations; and
`(B) a zero-emission vehicle, as such term is defined in section
86.1703-99 of title 40, Code of Federal Regulations.'.
SEC. 819. CREDIT FOR HYBRID VEHICLES, DEDICATED ALTERNATIVE FUEL
VEHICLES, AND INFRASTRUCTURE.
Section 507 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended by adding at the end the following:
`(p) CREDITS FOR NEW QUALIFIED HYBRID MOTOR VEHICLES-
`(1) DEFINITIONS- In this subsection:
`(A) 2000 MODEL YEAR CITY FUEL EFFICIENCY- The term `2000 model
year city fuel efficiency', with respect to a motor vehicle, means fuel
efficiency determined in accordance with the following
tables:
`(i) In the case of a passenger automobile:
The 2000 model year city
`If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs
43.7 mpg
2,000 lbs
38.3 mpg
2,250 lbs
34.1 mpg
2,500 lbs
30.7 mpg
2,750 lbs
27.9 mpg
3,000 lbs
25.6 mpg
3,500 lbs
22.0 mpg
4,000 lbs
19.3 mpg
4,500 lbs
17.2 mpg
5,000 lbs
15.5 mpg
5,500 lbs
14.1 mpg
6,000 lbs
12.9 mpg
6,500 lbs
11.9 mpg
7,000 to 8,500 lbs
11.1 mpg.
`(ii) In the case of a light truck:
The 2000 model year city
`If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs
37.6 mpg
2,000 lbs
33.7 mpg
2,250 lbs
30.6 mpg
2,500 lbs
28.0 mpg
2,750 lbs
25.9 mpg
3,000 lbs
24.1 mpg
3,500 lbs
21.3 mpg
4,000 lbs
19.0 mpg
4,500 lbs
17.3 mpg
5,000 lbs
15.8 mpg
5,500 lbs
14.6 mpg
6,000 lbs
13.6 mpg
6,500 lbs
12.8 mpg
7,000 to 8,500 lbs
12.0 mpg.
`(B) ADMINISTRATOR- The term `Administrator' means the
Administrator of the Environmental Protection Agency.
`(C) ENERGY STORAGE DEVICE- The term `energy storage device' means
an onboard rechargeable energy storage system or similar storage
device.
`(D) FUEL EFFICIENCY- The term `fuel efficiency' means the
percentage increased fuel efficiency specified in table 1 in paragraph
(2)(C) over the average 2000 model year city fuel efficiency of vehicles
in the same weight class.
`(E) MAXIMUM AVAILABLE POWER- The term `maximum available power',
with respect to a new qualified hybrid motor vehicle that is a passenger
vehicle or light truck, means the quotient obtained by
dividing--
`(i) the maximum power available from the electrical storage
device of the new qualified hybrid motor vehicle, during a standard
10-second pulse power or equivalent test; by
`(I) the maximum power described in clause (i);
and
`(II) the net power of the internal combustion or heat engine,
as determined in accordance with standards established by the Society
of Automobile Engineers.
`(F) MOTOR VEHICLE- The term `motor vehicle' has the meaning given
the term in section 216 of the Clean Air Act (42 U.S.C.
7550).
`(G) NEW QUALIFIED HYBRID MOTOR VEHICLE- The term `new qualified
hybrid motor vehicle' means a motor vehicle that--
`(i) draws propulsion energy from both--
`(I) an internal combustion engine (or heat engine that uses
combustible fuel); and
`(II) an energy storage device;
`(ii) in the case of a passenger automobile or light
truck--
`(I) in the case of a 2001 or later model vehicle, receives a
certificate of conformity under the Clean Air Act (42 U.S.C. 7401 et
seq.) and produces emissions at a level that is at or below the
applicable qualifying California low emissions vehicle standards
established under authority of section 243(e)(2) of the Clean Air Act
(42 U.S.C. 7583(e)(2)) for that make and model year;
and
`(II) in the case of a 2004 or later model vehicle, is
certified by the Administrator as producing emissions at a level that
is at or below the level established for Bin 5 vehicles in the Tier 2
regulations promulgated by the Administrator under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year
vehicle; and
`(iii) employs a vehicle braking system that recovers waste
energy to charge an energy storage device.
`(H) VEHICLE INERTIA WEIGHT CLASS- The term `vehicle inertia
weight class' has the meaning given the term in regulations promulgated by
the Administrator for purposes of the administration of title II of the
Clean Air Act (42 U.S.C. 7521 et seq.).
`(A) IN GENERAL- The Secretary shall allocate a partial credit to
a fleet or covered person under this title if the fleet or person acquires
a new qualified hybrid motor vehicle that is eligible to receive a credit
under each of the tables in subparagraph (C).
`(B) AMOUNT- The amount of a partial credit allocated under
subparagraph (A) for a vehicle described in that subparagraph shall be
equal to the sum of--
`(i) the partial credits determined under table 1 in
subparagraph (C); and
`(ii) the partial credits determined under table 2 in
subparagraph (C).
`(C) TABLES- The tables referred to in subparagraphs (A) and (B)
are as follows:
`Table 1
--Amount of
`Partial credit for increased fuel efficiency:
--credit:
At least 125% but less than 150% of 2000 model year city fuel
efficiency
--0.14
At least 150% but less than 175% of 2000 model year city fuel
efficiency
--0.21
At least 175% but less than 200% of 2000 model year city fuel
efficiency
--0.28
At least 200% but less than 225% of 2000 model year city fuel
efficiency
--0.35
At least 225% but less than 250% of 2000 model year city fuel
efficiency
--0.50.
`Table 2
--Amount of
`Partial credit for `Maximum Available Power':
--credit:
At least 5% but less than 10%
--0.125
At least 10% but less than 20%
--0.250
At least 20% but less than 30%
--0.375
At least 30% or more
--0.500.
`(D) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the
year in which the acquisition of the qualified hybrid motor vehicle is
made, treat that credit as the acquisition of 1 alternative fueled vehicle
that the fleet or covered person is required to acquire under this
title.
`(3) REGULATIONS- The Secretary shall promulgate regulations under
which any Federal fleet that acquires a new qualified hybrid motor vehicle
will receive partial credits determined under the tables contained in
paragraph (2)(C) for purposes of meeting the requirements of section
303.
`(q) CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARDS USE OF DEDICATED
VEHICLES IN NONCOVERED FLEETS-
`(1) DEFINITIONS- In this subsection:
`(A) DEDICATED VEHICLE- The term `dedicated vehicle'
includes--
`(i) a light, medium, or heavy duty vehicle;
and
`(ii) a neighborhood electric vehicle.
`(B) MEDIUM OR HEAVY DUTY VEHICLE- The term `medium or heavy duty
vehicle' includes a vehicle that--
`(i) operates solely on alternative fuel; and
`(ii)(I) in the case of a medium duty vehicle, has a gross
vehicle weight rating of more than 8,500 pounds but not more than 14,000
pounds; or
`(II) in the case of a heavy duty vehicle, has a gross vehicle
weight rating of more than 14,000 pounds.
`(C) SUBSTANTIAL CONTRIBUTION- The term `substantial contribution'
(equal to 1 full credit) means not less than $15,000 in cash or in kind
services, as determined by the Secretary.
`(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a
fleet or covered person under this title if the fleet or person makes a
substantial contribution toward the acquisition and use of dedicated
vehicles by a person that owns, operates, leases, or otherwise controls a
fleet that is not covered by this title.
`(3) MULTIPLE CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES-
The Secretary shall issue 2 full credits to a fleet or covered person under
this title if the fleet or person acquires a medium or heavy duty dedicated
vehicle.
`(4) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the year
in which the acquisition of the dedicated vehicle is made, treat that credit
as the acquisition of 1 alternative fueled vehicle that the fleet or covered
person is required to acquire under this title.
`(5) LIMITATION- Per vehicle credits acquired under this subsection
shall not exceed the per vehicle credits allowed under this section to a
fleet for qualifying vehicles in each of the weight categories (light,
medium, or heavy duty).
`(r) CREDIT FOR SUBSTANTIAL INVESTMENT IN ALTERNATIVE FUEL
INFRASTRUCTURE-
`(1) DEFINITIONS- In this section, the term `qualifying
infrastructure' means--
`(A) equipment required to refuel or recharge alternative fueled
vehicles;
`(B) facilities or equipment required to maintain, repair, or
operate alternative fueled vehicles;
`(C) training programs, educational materials, or other activities
necessary to provide information regarding the operation, maintenance, or
benefits associated with alternative fueled vehicles; and
`(D) such other activities the Secretary considers to constitute
an appropriate expenditure in support of the operation, maintenance, or
further widespread adoption of or utilization of alternative fueled
vehicles.
`(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a
fleet or covered person under this title for investment in qualifying
infrastructure if the qualifying infrastructure is open to the general
public during regular business hours.
`(3) AMOUNT- For the purposes of credits under this
subsection--
`(A) 1 credit shall be equal to a minimum investment of $25,000 in
cash or in kind services, as determined by the Secretary;
and
`(B) except in the case of a Federal or State fleet, no part of
the investment may be provided by Federal or State funds.
`(4) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the year
in which the investment is made, treat that credit as the acquisition of 1
alternative fueled vehicle that the fleet or covered person is required to
acquire under this title.'.
SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) IN GENERAL- Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended--
(1) by redesignating subsection (o) as subsection (q);
and
(2) by inserting after subsection (n) the following:
`(o) RENEWABLE FUEL PPROGRAM-
`(1) DEFINITIONS- In this section:
`(A) CELLULOSIC BIOMASS ETHANOL- The term `cellulosic biomass
ethanol' means ethanol derived from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis,
including--
`(i) dedicated energy crops and trees;
`(ii) wood and wood residues;
`(v) agricultural residues;
`(vii) animal wastes and other waste materials;
and
`(viii) municipal solid waste.
`(i) IN GENERAL- The term `renewable fuel' means motor vehicle
fuel that--
`(I)(aa) is produced from grain, starch, oilseeds, or other
biomass; or
`(bb) is natural gas produced from a biogas source, including
a landfill, sewage waste treatment plant, feedlot, or other place
where decaying organic material is found; and
`(II) is used to replace or reduce the quantity of fossil fuel
present in a fuel mixture used to operate a motor
vehicle.
`(ii) INCLUSION- The term `renewable fuel' includes cellulosic
biomass ethanol and biodiesel (as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
`(C) SMALL REFINERY- The term `small refinery' means a refinery
for which average aggregate daily crude oil throughput for the calendar
year (as determined by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does not exceed 75,000
barrels.
`(2) RENEWABLE FUEL PROGRAM-
`(A) IN GENERAL- Not later than 1 year from enactment of this
provision, the Administrator shall promulgate regulations ensuring that
gasoline sold or dispensed to consumers in the United States, on an annual
average basis, contains the applicable volume of renewable fuel as
specified in subparagraph (B). Regardless of the date of promulgation,
such regulations shall contain compliance provisions for refiners,
blenders, and importers, as appropriate, to ensure that the requirements
of this section are met, but shall not restrict where renewables can be
used, or impose any per-gallon obligation for the use of renewables. If
the Administrator does not promulgate such regulations, the applicable
percentage, on a volume percentage of gasoline basis, shall be 1.62 in
2004.
(i) CALENDAR YEARS 2004 THROUGH 2012- For the purpose of
subparagraph (A), the applicable volume for any of calendar years 2004
through 2012 shall be determined in accordance with the following
table:
Applicable volume of renewable fuel
`Calendar year:
(In billions of gallons)
--2.3
--2.6
--2.9
--3.2
--3.5
--3.9
--4.3
--4.7
--5.0.
`(ii) CALENDAR YEAR 2013 AND THEREAFTER- For the purpose of
subparagraph (A), the applicable volume for calendar year 2013 and each
calendar year thereafter shall be equal to the product obtained by
multiplying--
`(I) the number of gallons of gasoline that the Administrator
estimates will be sold or introduced into commerce in the calendar
year; and
`(aa) 5.0 billion gallons of renewable fuels; bears
to
`(bb) the number of gallons of gasoline sold or introduced into
commerce in calendar year 2012.
`(3) APPLICABLE PERCENTAGES- Not later than October 31 of each
calendar year, through 2011, the Administrator of the Energy Information
Administration shall provide the Administrator an estimate of the volumes of
gasoline sales in the United States for the coming calendar year. Based on
such estimates, the Administrator shall by November 30 of each calendar
year, through 2011, determine and publish in the Federal Register, the
renewable fuel obligation, on a volume percentage of gasoline basis,
applicable to refiners, blenders, distributors and importers, as
appropriate, for the coming calendar year, to ensure that the requirements
of paragraph (2) are met. For each calendar year, the Administrator shall
establish a single applicable percentage that applies to all parties, and
make provision to avoid redundant obligations. In determining the applicable
percentages, the Administrator shall make adjustments to account for the use
of renewable fuels by exempt small refineries during the previous
year.
`(4) CELLULOSIC BIOMASS ETHANOL- For the purpose of paragraph (2), 1
gallon of cellulosic biomass ethanol shall be considered to be the
equivalent of 1.5 gallon of renewable fuel.
`(A) IN GENERAL- The regulations promulgated to carry out this
subsection shall provide for the generation of an appropriate amount of
credits by any person that refines, blends, or imports gasoline that
contains a quantity of renewable fuel that is greater than the quantity
required under paragraph (2). Such regulations shall provide for the
generation of an appropriate amount of credits for biodiesel fuel. If a
small refinery notifies the Administrator that it waives the exemption
provided by this Act, the regulations shall provide for the generation of
credits by the small refinery beginning in the year following such
notification.
`(B) USE OF CREDITS- A person that generates credits under
subparagraph (A) may use the credits, or transfer all or a portion of the
credits to another person, for the purpose of complying with paragraph
(2).
`(C) LIFE OF CREDITS- A credit generated under this paragraph
shall be valid to show compliance:
(i) in the calendar year in which the credit was generated or
the next calendar year, or
(ii) in the calendar year in which the credit was generated or
next two consecutive calendar years if the Administrator promulgates
regulations under paragraph (6).
`(D) INABILITY TO PURCHASE SUFFICIENT CREDITS- The regulations
promulgated to carry out this subsection shall include provisions allowing
any person that is unable to generate or purchase sufficient credits to
meet the requirements under paragraph (2) to carry forward a renewables
deficit provided that, in the calendar year following the year in which
the renewables deficit is created, such person shall achieve compliance
with the renewables requirement under paragraph (2), and shall generate or
purchase additional renewables credits to offset the renewables deficit of
the previous year.
`(6) SEASONAL VARIATIONS IN RENEWABLE FUEL USE-
`(A) STUDY- For each of calendar years 2004 through 2012, the
Administrator of the Energy Information Administration, shall conduct a
study of renewable fuels blending to determine whether there are excessive
seasonal variations in the use of renewable fuels.
`(B) REGULATION OF EXCESSIVE SEASONAL VARIATIONS- If, for any
calendar year, the Administrator of the Energy Information Administration,
based on the study under subparagraph (A), makes the determinations
specified in subparagraph (C), the Administrator shall promulgate
regulations to ensure that 35 percent or more of the quantity of renewable
fuels necessary to meet the requirement of paragraph (2) is used during
each of the periods specified in subparagraph (D) of each subsequent
calendar year.
`(C) DETERMINATIONS- The determinations referred to in
subparagraph (B) are that--
`(i) less than 35 percent of the quantity of renewable fuels
necessary to meet the requirement of paragraph (2) has been used during
one of the periods specified in subparagraph (D) of the calendar year;
and
`(ii) a pattern of excessive seasonal variation described in
clause (i) will continue in subsequent calendar years.
`(D) PERIODS- The two periods referred to in this paragraph
are--
`(i) April through September; and
`(ii) January through March and October through
December.
`(E) EXCLUSIONS- Renewable fuels blended or consumed in 2004 in a
state which has received a waiver under section 209(b) shall not be
included in the study in subparagraph (A).
`(A) IN GENERAL- The Administrator, in consultation with the
Secretary of Agriculture and the Secretary of Energy, may waive the
requirement of paragraph (2) in whole or in part on petition by one or
more States by reducing the national quantity of renewable fuel required
under this subsection--
`(i) based on a determination by the Administrator, after public
notice and opportunity for comment, that implementation of the
requirement would severely harm the economy or environment of a State, a
region, or the United States; or
`(ii) based on a determination by the Administrator, after
public notice and opportunity for comment, that there is an inadequate
domestic supply or distribution capacity to meet the
requirement.
`(B) PETITIONS FOR WAIVERS- The Administrator, in consultation
with the Secretary of Agriculture and the Secretary of Energy, shall
approve or disapprove a State petition for a waiver of the requirement of
paragraph (2) within 90 days after the date on which the petition is
received by the Administrator.
`(C) TERMINATION OF WAIVERS- A waiver granted under subparagraph
(A) shall terminate after 1 year, but may be renewed by the Administrator
after consultation with the Secretary of Agriculture and the Secretary of
Energy.
`(8) STUDY AND WAIVER FOR INITIAL YEAR OF PROGRAM- Not later than
180 days from enactment, the Secretary of Energy shall complete for the
Administrator a study assessing whether the renewable fuels requirement
under paragraph (2) will likely result in significant adverse consumer
impacts in 2004, on a national, regional or state basis. Such study shall
evaluate renewable fuel supplies and prices, blendstock supplies, and supply
and distribution system capabilities. Based on such study, the Secretary
shall make specific recommendations to the Administrator regarding waiver of
the requirements of paragraph (2), in whole or in part, to avoid any such
adverse impacts. Within 270 days from enactment, the Administrator shall,
consistent with the recommendations of the Secretary waive, in whole or in
part, the renewable fuels requirement under paragraph (2) by reducing the
national quantity of renewable fuel required under this subsection in 2004.
This provision shall not be interpreted as limiting the Administrator's
authority to waive the requirements of paragraph (2) in whole, or in part,
under paragraph (7), pertaining to waivers.
`(A) IN GENERAL- The requirement of paragraph (2) shall not apply
to small refineries until January 1, 2008. Not later than December 31,
2006, the Secretary of Energy shall complete for the Administrator a study
to determine whether the requirement of paragraph (2) would impose a
disproportionate economic hardship on small refineries. For any small
refinery that the Secretary of Energy determines would experience a
disproportionate economic hardship, the Administrator shall extend the
small refinery exemption for such small refinery for no less than two
additional years.
`(i) EXTENSION OF EXEMPTION- A small refinery may at any time
petition the Administrator for an extension of the exemption from the
requirement of paragraph (2) for the reason of disproportionate economic
hardship. In evaluating a hardship petition, the Administrator, in
consultation with the Secretary of Energy, shall consider the findings
of the study in addition to other economic factors.
`(ii) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall
act on any petition submitted by a small refinery for a hardship
exemption not later than 90 days after the receipt of the
petition.
`(C) CREDIT PROGRAM- If a small refinery notifies the
Administrator that it waives the exemption provided by this Act, the
regulations shall provide for the generation of credits by the small
refinery beginning in the year following such notification.
`(D) OPT-IN FOR SMALL REFINERS- A small refinery shall be subject
to the requirements of this section if it notifies the Administrator that
it waives the exemption under subparagraph (A).
(b) PENALTIES AND ENFORCEMENT- Section 211(d) of the Clean Air Act (42
U.S.C. 7545(d)) is amended--
(A) in the first sentence, by striking `or (n)' each place it
appears and inserting `(n) or (o)'; and
(B) in the second sentence, by striking `or (m)' and inserting
`(m), or (o)'; and
(2) in the first sentence of paragraph (2), by striking `and (n)'
each place it appears and inserting `(n), and (o)'.
(c) EXCLUSION FROM ETHANOL WAIVER- Section 211(h) of the Clean Air Act
(42 U.S.C. 7545(h)) is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
`(5) EXCLUSION FROM ETHANOL WAIVER-
`(A) PROMULGATION OF REGULATIONS- Upon notification, accompanied
by supporting documentation, from the Governor of a State that the Reid
vapor pressure limitation established by paragraph (4) will increase
emissions that contribute to air pollution in any area in the State, the
Administrator shall, by regulation, apply, in lieu of the Reid vapor
pressure limitation established by paragraph (4), the Reid vapor pressure
limitation established by paragraph (1) to all fuel blends containing
gasoline and 10 percent denatured anhydrous ethanol that are sold, offered
for sale, dispensed, supplied, offered for supply, transported or
introduced into commerce in the area during the high ozone
season.
`(B) DEADLINE FOR PROMULGATION- The Administrator shall promulgate
regulations under subparagraph (A) not later than 90 days after the date
of receipt of a notification from a Governor under that
subparagraph.
`(i) IN GENERAL- With respect to an area in a State for which
the Governor submits a notification under subparagraph (A), the
regulations under that subparagraph shall take effect on the later
of--
`(I) the first day of the first high ozone season for the area
that begins after the date of receipt of the notification;
or
`(II) 1 year after the date of receipt of the
notification.
`(ii) EXTENSION OF EFFECTIVE DATE BASED ON DETERMINATION OF
INSUFFICIENT SUPPLY-
`(I) IN GENERAL- If, after receipt of a notification with
respect to an area from a Governor of a State under subparagraph (A),
the Administrator determines, on the Administrator's own motion or on
petition of any person and after consultation with the Secretary of
Energy, that the promulgation of regulations described in subparagraph
(A) would result in an insufficient supply of gasoline in the State,
the Administrator, by regulation--
`(aa) shall extend the effective date of the regulations under
clause (i) with respect to the area for not more than 1 year; and
`(bb) may renew the extension under item (aa) for two additional
periods, each of which shall not exceed 1 year.
`(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator
shall act on any petition submitted under subclause (I) not later than
180 days after the date of receipt of the
petition.'.
(d) SURVEY OF RENEWABLE FUEL MARKET-
(1) SURVEY AND REPORT- Not later than December 1, 2005, and annually
thereafter, the Administrator shall--
(A) conduct, with respect to each conventional gasoline use area
and each reformulated gasoline use area in each State, a survey to
determine the market shares of--
(i) conventional gasoline containing ethanol;
(ii) reformulated gasoline containing ethanol;
(iii) conventional gasoline containing renewable fuel;
and
(iv) reformulated gasoline containing renewable fuel;
and
(B) submit to Congress, and make publicly available, a report on
the results of the survey under subparagraph (A).
(2) RECORDKEEPING AND REPORTING REQUIREMENTS- The Administrator may
require any refiner, blender, or importer to keep such records and make such
reports as are necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator shall rely, to the extent practicable, on
existing reporting and recordkeeping requirements to avoid duplicative
requirements.
(3) APPLICABLE LAW- Activities carried out under this subsection
shall be conducted in a manner designed to protect confidentiality of
individual responses.
(e) RENEWABLE FUELS SAFE HARBOR-
(1) IN GENERAL- Notwithstanding any other provision of federal or
state law, no renewable fuel, as defined by this Act, used or intended to be
used as a motor vehicle fuel, nor any motor vehicle fuel containing such
renewable fuel, shall be deemed defective in design or manufacture by virtue
of the fact that it is, or contains, such a renewable fuel, if it does not
violate a control or prohibition imposed by the Administrator under section
211 of the Clean Air Act, as amended by this Act, and the manufacturer is in
compliance with all requests for information under section 211(b) of the
Clean Air Act, as amended by this Act. In the event that the safe harbor
under this section does not apply, the existence of a design defect or
manufacturing defect shall be determined under otherwise applicable
law.
(2) EXCEPTIONS- This subsection shall not apply to
ethers.
(3) EFFECTIVE DATE- This subsection shall be effective as of the
date of enactment and shall apply with respect to all claims filed on or
after that date.
SEC. 820A. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
Title III of the Energy Policy Act of 1992 is amended by striking
section 306 (42 U.S.C. 13215) and inserting the following:
`SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
`(a) ETHANOL-BLENDED GASOLINE- The head of each Federal agency shall
ensure that, in areas in which ethanol-blended gasoline is reasonably
available at a generally competitive price, the Federal agency purchases
ethanol-blended gasoline containing at least 10 percent ethanol rather than
nonethanol-blended gasoline, for use in vehicles used by the agency that use
gasoline.
`(1) DEFINITION OF BIODIESEL- In this subsection, the term
`biodiesel' has the meaning given the term in section 312(f).
`(2) REQUIREMENT- The head of each Federal agency shall ensure that
the Federal agency purchases, for use in fueling fleet vehicles that use
diesel fuel used by the Federal agency at the location at which fleet
vehicles of the Federal agency are centrally fueled, in areas in which the
biodiesel-blended diesel fuel described in paragraphs (A) and (B) is
available at a generally competitive price--
`(A) as of the date that is 5 years after the date of enactment of
this paragraph, biodiesel-blended diesel fuel that contains at least 2
percent biodiesel, rather than nonbiodiesel-blended diesel fuel;
and
`(B) as of the date that is 10 years after the date of enactment
of this paragraph, biodiesel-blended diesel fuel that contains at least 20
percent biodiesel, rather than nonbiodiesel-blended diesel
fuel.
`(3) REQUIREMENT OF FEDERAL LAW- The provisions of this subsection
shall not be considered a requirement of Federal law for the purposes of
section 312.
`(c) EXEMPTION- This section does not apply to fuel used in vehicles
excluded from the definition of `fleet' by subparagraphs (A) through (H) of
section 301(9).'.
SEC. 820B. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE LOAN
GUARANTEE PROGRAM.
(a) DEFINITION OF MUNICIPAL SOLID WASTE- In this section, the term
`municipal solid waste' has the meaning given the term `solid waste' in
section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).
(b) ESTABLISHMENT OF PROGRAM- The Secretary of Energy shall establish
a program to provide guarantees of loans by private institutions for the
construction of facilities for the processing and conversion of municipal
solid waste into fuel ethanol and other commercial byproducts.
(c) REQUIREMENTS- The Secretary may provide a loan guarantee under
subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not available to the
applicant under reasonable terms or conditions sufficient to finance the
construction of a facility described in subsection (b);
(2) the prospective earning power of the applicant and the character
and value of the security pledged provide a reasonable assurance of
repayment of the loan to be guaranteed in accordance with the terms of the
loan; and
(3) the loan bears interest at a rate determined by the Secretary to
be reasonable, taking into account the current average yield on outstanding
obligations of the United States with remaining periods of maturity
comparable to the maturity of the loan.
(d) CRITERIA- In selecting recipients of loan guarantees from among
applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need for the
facility because of--
(A) the limited availability of land for waste disposal;
or
(B) a high level of demand for fuel ethanol or other commercial
byproducts of the facility.
(e) MATURITY- A loan guaranteed under subsection (b) shall have a
maturity of not more than 20 years.
(f) TERMS AND CONDITIONS- The loan agreement for a loan guaranteed
under subsection (b) shall provide that no provision of the loan agreement may
be amended or waived without the consent of the Secretary.
(g) ASSURANCE OF REPAYMENT- The Secretary shall require that an
applicant for a loan guarantee under subsection (b) provide an assurance of
repayment in the form of a performance bond, insurance, collateral, or other
means acceptable to the Secretary in an amount equal to not less than 20
percent of the amount of the loan.
(h) GUARANTEE FEE- The recipient of a loan guarantee under subsection
(b) shall pay the Secretary an amount determined by the Secretary to be
sufficient to cover the administrative costs of the Secretary relating to the
loan guarantee.
(i) FULL FAITH AND CREDIT- The full faith and credit of the United
States is pledged to the payment of all guarantees made under this section.
Any such guarantee made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be incontestable in the hands of
a holder of the guaranteed loan.
(j) REPORTS- Until each guaranteed loan under this section has been
repaid in full, the Secretary shall annually submit to Congress an report on
the activities of the Secretary under this section.
(k) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.
(l) TERMINATION OF AUTHORITY- The authority of the Secretary to issue
a loan guarantee under subsection (b) terminates on the date that is 10 years
after the date of enactment of this Act.
Subtitle B--Additional Fuel Efficiency Measures
SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF AUTOMOBILES.
Section 32917 of title 49, United States Code, is amended to read as
follows:
`Sec. 32917. Standards for executive agency automobiles
`(a) BASELINE AVERAGE FUEL ECONOMY- The head of each executive agency
shall determine, for all automobiles in the agency's fleet of automobiles that
were leased or bought as a new vehicle in fiscal year 1999, the average fuel
economy for such automobiles. For the purposes of this section, the average
fuel economy so determined shall be the baseline average fuel economy for the
agency's fleet of automobiles.
`(b) INCREASE OF AVERAGE FUEL ECONOMY- The head of an executive agency
shall manage the procurement of automobiles for that agency in such a manner
that--
`(1) not later than September 30, 2003, the average fuel economy of
the new automobiles in the agency's fleet of automobiles is not less than 1
mile per gallon higher than the baseline average fuel economy determined
under subsection (a) for that fleet; and
`(2) not later than September 30, 2005, the average fuel economy of
the new automobiles in the agency's fleet of automobiles is not less than 3
miles per gallon higher than the baseline average fuel economy determined
under subsection (a) for that fleet.
`(c) CALCULATION OF AVERAGE FUEL ECONOMY- Average fuel economy shall
be calculated for the purposes of this section in accordance with guidance
which the Secretary of Transportation shall prescribe for the implementation
of this section.
`(d) DEFINITIONS- In this section:
`(1) The term `automobile' does not include any vehicle designed for
combat-related missions, law enforcement work, or emergency rescue
work.
`(2) The term `executive agency' has the meaning given that term in
section 105 of title 5.
`(3) The term `new automobile', with respect to the fleet of
automobiles of an executive agency, means an automobile that is leased for
at least 60 consecutive days or bought, by or for the agency, after
September 30, 1999.'.
SEC. 822. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VEHICLES.
Title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et
seq.) is amended by adding at the end the following:
`PART K--REDUCING TRUCK IDLING
`SEC. 400AAA. REDUCING TRUCK IDLING.
`(a) STUDY- Not later than 18 months after the date of enactment of
this section, the Secretary shall, in consultation with the Secretary of
Transportation, commence a study to analyze the potential fuel savings
resulting from long duration idling of main drive engines in heavy-duty
vehicles.
`(b) REGULATIONS- Upon completion of the study under subsection (a),
the Secretary may issue regulations requiring the installation of idling
reduction systems on all newly manufactured heavy-duty vehicles.
`(c) DEFINITIONS- As used in this section:
`(1) The term `heavy-duty vehicle' means a vehicle that has a gross
vehicle weight rating greater than 8,500 pounds and is powered by a diesel
engine.
`(2) The term `idling reduction system' means a device or system of
devices used to reduce long duration idling of a diesel engine in a
vehicle.
`(3) The term `long duration idling' means the operation of a main
drive engine of a heavy-duty vehicle for a period of more than 15
consecutive minutes when the main drive engine is not engaged in gear,
except that such term does not include idling as a result of traffic
congestion or other impediments to the movement of a heavy-duty
vehicle.
`(4) The term `vehicle' has the meaning given such term in section 4
of title 1, United States Code.'.
SEC. 823. CONSERVE BY BICYCLING PROGRAM.
(a) ESTABLISHMENT- The Secretary of Transportation shall establish a
Conserve By Bicycling pilot program that shall provide for up to 10
geographically dispersed projects to encourage the use of bicycles in place of
motor vehicles. Such projects shall use education and marketing to convert
motor vehicle trips to bike trips, document project results and energy
savings, and facilitate partnerships among entities in the fields of
transportation, law enforcement, education, public health, environment, or
energy. At least 20 percent of the cost of each project shall be provided from
State or local sources. Not later than 2 years after implementation of the
projects, the Secretary of Transportation shall submit a report to Congress on
the results of the pilot program.
(b) NATIONAL ACADEMY STUDY- The Secretary of Transportation shall
contract with the National Academy of Sciences to conduct a study on the
feasibility and benefits of converting motor vehicle trips to bicycle trips
and to issue a report, not later than 2 years after enactment of this Act, on
the findings of such study.
(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Secretary of' Transportation $5,500,000, to remain
available until expended, to carry out the pilot program and study pursuant to
this section.
SEC. 824. FUEL CELL VEHICLE PROGRAM.
Not later than 1 year from date of enactment of this section, the
Secretary shall develop a program with timetables for developing technologies
to enable at least 100,000 hydrogen-fueled fuel cell vehicles to be available
for sale in the United States by 2010 and at least 2.5 million of such
vehicles to be available by 2020 and annually thereafter. The program shall
also include timetables for development of technologies to provide 50 million
gasoline equivalent gallons of hydrogen for sale in fueling stations in the
United States by 2010 and at least 2.5 billion gasoline equivalent gallons by
2020 and annually thereafter. The Secretary shall annually include a review of
the progress toward meeting the vehicle sales of Energy budget.
Subtitle C--Federal Reformulated Fuels
SEC. 831. SHORT TITLE.
This subtitle may be cited as the `Federal Reformulated Fuels Act of
2002'.
SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.
(a) USE OF LUST FUNDS FOR REMEDIATION OF CONTAMINATION FROM ETHER FUEL
ADDITIVES- Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended--
(1) in paragraph (7)(A)--
(A) by striking `paragraphs (1) and (2) of this subsection' and
inserting `paragraphs (1), (2), and (12)'; and
(B) by inserting `and section 9010' before `if'; and
(2) by adding at the end the following:
`(12) REMEDIATION OF CONTAMINATION FROM ETHER FUEL ADDITIVES-
`(A) IN GENERAL- The Administrator and the States may use funds
made available under section 9013(1) to carry out corrective actions with
respect to a release of methyl tertiary butyl ether or other ether fuel
additive that presents a threat to human health, welfare, or the
environment.
`(B) APPLICABLE AUTHORITY- Subparagraph (A) shall be carried
out--
`(i) in accordance with paragraph (2), except that a release
with respect to which a corrective action is carried out under
subparagraph (A) shall not be required to be from an underground storage
tank; and
`(ii) in the case of a State, in accordance with a cooperative
agreement entered into by the Administrator and the State under
paragraph (7).'.
(b) RELEASE PREVENTION AND COMPLIANCE- Subtitle I of the Solid Waste
Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking section 9010 and
inserting the following:
`SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.
`Funds made available under section 9013(2) from the Leaking
Underground Storage Tank Trust Fund may be used for conducting inspections, or
for issuing orders or bringing actions under this subtitle--
`(1) by a State (pursuant to section 9003(h)(7)) acting
under--
`(A) a program approved under section 9004; or
`(B) State requirements regulating underground storage tanks that
are similar or identical to this subtitle, as determined by the
Administrator; and
`(2) by the Administrator, acting under this subtitle or a State
program approved under section 9004.
`SEC. 9011. BEDROCK BIOREMEDIATION.
`The Administrator shall establish, at an institution of higher
education (as defined in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001)) with established expertise in bioremediation of contaminated
bedrock aquifers, a resource center--
`(1) to conduct research concerning bioremediation of methyl
tertiary butyl ether in contaminated underground aquifers, including
contaminated bedrock; and
`(2) to provide for States a technical assistance clearinghouse for
information concerning innovative technologies for bioremediation described
in paragraph (1).
`SEC. 9012. SOIL REMEDIATION.
`The Administrator may establish a program to conduct research
concerning remediation of methyl tertiary butyl ether contamination of soil,
including granitic or volcanic soil.
`SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.
`In addition to amounts made available under section 2007(f), there
are authorized to be appropriated from the Leaking Underground Storage Tank
Trust Fund, notwithstanding section 9508(c)(1) of the Internal Revenue Code of
1986--
`(1) to carry out section 9003(h)(12), $200,000,000 for fiscal year
2003, to remain available until expended;
`(2) to carry out section 9010--
`(A) $50,000,000 for fiscal year 2003; and
`(B) $30,000,000 for each of fiscal years 2004 through
2008;
`(3) to carry out section 9011--
`(A) $500,000 for fiscal year 2003; and
`(B) $300,000 for each of fiscal years 2004 through 2008;
and
`(4) to carry out section 9012--
`(A) $100,000 for fiscal year 2003; and
`(B) $50,000 for each of fiscal years 2004 through
2008.
(c) TECHNICAL AMENDMENTS- (1) Section 1001 of the Solid Waste Disposal
Act (42 U.S.C. prec. 6901) is amended by striking the item relating to section
9010 and inserting the following:
`Sec. 9010. Release prevention and compliance.
`Sec. 9011. Bedrock bioremediation.
`Sec. 9012. Soil remediation.
`Sec. 9013. Authorization of appropriations.'.
(2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C.
6991(3)(A)) is amended by striking `sustances' and inserting
`substances'.
(3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C.
6991b(f)(1)) is amended by striking `subsection (c) and (d) of this section'
and inserting `subsections (c) and (d)'.
(4) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C.
6991c(a)) is amended in the second sentence by striking `referred to' and all
that follows and inserting `referred to in subparagraph (A) or (B), or both,
of section 9001(2).'.
(5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is
amended--
(A) in subsection (a), by striking `study taking' and inserting
`study, taking';
(B) in subsection (b)(1), by striking `relevent' and inserting
`relevant'; and
(C) in subsection (b)(4), by striking `Evironmental' and inserting
`Environmental'.
SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.
(a) FINDINGS- Congress finds that--
(1) since 1979, methyl tertiary butyl ether (referred to in this
section as `MTBE') has been used nationwide at low levels in gasoline to
replace lead as an octane booster or anti-knocking agent;
(2) Public Law 101-549 (commonly known as the `Clean Air Act
Amendments of 1990') (42 U.S.C. 7401 et seq.) established a fuel oxygenate
standard under which reformulated gasoline must contain at least 2 percent
oxygen by weight;
(3) at the time of the adoption of the fuel oxygen standard,
Congress was aware that significant use of MTBE could result from the
adoption of that standard, and that the use of MTBE would likely be
important to the cost-effective implementation of that program;
(4) Congress is aware that gasoline and its component additives have
leaked from storage tanks, with consequences for water quality;
(5) the fuel industry responded to the fuel oxygenate standard
established by Public Law 101-549 by making substantial investments
in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing gasoline to the
marketplace;
(6) when leaked or spilled into the environment, MTBE may cause
serious problems of drinking water quality;
(7) in recent years, MTBE has been detected in water sources
throughout the United States;
(8) MTBE can be detected by smell and taste at low
concentrations;
(9) while small quantities of MTBE can render water supplies
unpalatable, the precise human health effects of MTBE consumption at low
levels are yet unknown;
(10) in the report entitled `Achieving Clean Air and Clean Water:
The Report of the Blue Ribbon Panel on Oxygenates in Gasoline' and dated
September 1999, Congress was urged--
(A) to eliminate the fuel oxygenate standard;
(B) to greatly reduce use of MTBE; and
(C) to maintain the environmental performance of reformulated
gasoline;
(A) reconsidered the relative value of MTBE in gasoline;
and
(B) decided to eliminate use of MTBE as a fuel
additive;
(12) the timeline for elimination of use of MTBE as a fuel additive
must be established in a manner that achieves an appropriate balance among
the goals of--
(A) environmental protection;
(B) adequate energy supply; and
(C) reasonable fuel prices; and
(13) it is appropriate for Congress to provide some limited
transition assistance--
(A) to merchant producers of MTBE who produced MTBE in response to
a market created by the oxygenate requirement contained in the Clean Air
Act; and
(B) for the purpose of mitigating any fuel supply problems that
may result from elimination of a widely-used fuel additive.
(b) PURPOSES- The purposes of this section are--
(1) to eliminate use of MTBE as a fuel oxygenate; and
(2) to provide assistance to merchant producers of MTBE in making
the transition from producing MTBE to producing other fuel
additives.
(c) AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS- Section 211(c)
of the Clean Air Act (42 U.S.C. 7545(c)) is amended--
(1) in paragraph (1)(A)--
(A) by inserting `fuel or fuel additive or' after `Administrator
any'; and
(B) by striking `air pollution which' and inserting `air
pollution, or water pollution, that';
(2) in paragraph (4)(B), by inserting `or water quality protection,'
after `emission control,'; and
(3) by adding at the end the following:
`(5) Prohibition on use of mtbe-
`(A) IN GENERAL- Subject to subparagraph (E), not later than 4
years after the date of enactment of this paragraph, the use of methyl
tertiary butyl ether in motor vehicle fuel in any State other than a State
described in subparagraph (C) is prohibited.
`(B) REGULATIONS- The Administrator shall promulgate regulations
to effect the prohibition in subparagraph (A).
`(C) STATES THAT AUTHORIZE USE- A State described in this
subparagraph is a State that submits to the Administrator a notice that
the State authorizes use of methyl tertiary butyl ether in motor vehicle
fuel sold or used in the State.
`(D) PUBLICATION OF NOTICE- The Administrator shall publish in the
Federal Register each notice submitted by a State under subparagraph
(C).
`(E) TRACE QUANTITIES- In carrying out subparagraph (A), the
Administrator may allow trace quantities of methyl tertiary butyl ether,
not to exceed 0.5 percent by volume, to be present in motor vehicle fuel
in cases that the Administrator determines to be
appropriate.
`(6) MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE-
`(i) GRANTS- The Secretary of Energy, in consultation with the
Administrator, may make grants to merchant producers of methyl tertiary
butyl ether in the United States to assist the producers in the
conversion of eligible production facilities described in subparagraph
(C) to the production of iso-octane and alkylates.
`(ii) Determination- The Administrator, in consultation with the
Secretary of Energy, may determine that transition assistance for the
production of iso-octane and alkylates is inconsistent with the
provisions of subparagraph (B) and, on that basis, may deny applications
for grants authorized by this provision.
`(B) FURTHER GRANTS- The Secretary of Energy, in consultation with
the Administrator, may also further make grants to merchant producers of
MTBE in the United States to assist the producers in the conversion of
eligible production facilities described in subparagraph (C) to the
production of such other fuel additives that, consistent with
211(c)--
`(i) unless the Administrator determines that such fuel
additives may reasonably be anticipated to endanger public health or the
environment;
`(ii) have been registered and have been tested or are being
tested in accordance with the requirements of this section;
and
`(iii) will contribute to replacing gasoline volumes lost as a
result of paragraph (5).
`(C) Eligible production facilities- A production facility shall
be eligible to receive a grant under this paragraph if the production
facility--
`(i) is located in the United States; and
`(ii) produced methyl tertiary butyl ether for consumption in
nonattainment areas during the period--
`(I) beginning on the date of enactment of this paragraph;
and
`(II) ending on the effective date of the prohibition on the
use of methyl tertiary butyl ether under paragraph
(5).
`(D) Authorization of appropriations- There is authorized to be
appropriated to carry out this paragraph $250,000,000 for each of fiscal
years 2003 through 2005.'.
(d) No Effect on Law Concerning State Authority- The amendments made
by subsection (c) have no effect on the law in effect on the day before the
date of enactment of this Act regarding the authority of States to limit the
use of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED
GASOLINE.
(1) In general- Section 211(k) of the Clean Air Act (42 U.S.C.
7545(k)) is amended--
(i) in the second sentence of subparagraph (A), by striking
`(including the oxygen content requirement contained in subparagraph
(B))';
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(B) in paragraph (3)(A), by striking clause (v);
(i) in subparagraph (A)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively; and
(ii) in subparagraph (C)--
(I) by striking clause (ii); and
(II) by redesignating clause (iii) as clause (ii);
and
(2) Effective date- The amendments made by paragraph (1) take effect
270 days after the date of enactment of this Act, except that such
amendments shall take effect upon enactment in any State that has received a
waiver under section 209(b) of the Clean Air Act.
(b) Maintenance of Toxic Air Pollutant Emission Reductions- Section
211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is amended--
(1) by striking `Within 1 year after the enactment of the Clean Air
Act Amendments of 1990,' and inserting the following:
`(A) In general- Not later than November 15, 1991,';
and
(2) by adding at the end the following:
`(B) Maintenance of toxic air pollutant emissions reductions from
reformulated gasoline-
`(i) Definitions- In this subparagraph the term `PADD' means a
Petroleum Administration for Defense District.
`(ii) Regulations regarding emissions of toxic air pollutants-
Not later than 270 days after the date of enactment of this
subparagraph, the Administrator shall establish, for each refinery or
importer (other than a refinery or importer in a State that has received
a waiver under section 209(b) with regard to gasoline produced for use
in that state), standards for toxic air pollutants from use of the
reformulated gasoline produced or distributed by the refinery or
importer that maintain the reduction of the average annual aggregate
emissions of toxic air pollutants for reformulated gasoline produced or
distributed by the refinery or importer during calendar years 1999 and
2000, determined on the basis of data collected by the Administrator
with respect to the refinery or importer.
(iii) Standards applicable to specific refineries or importers-
`(I) Applicability of standards- For any calendar year, the
standards applicable to a refinery or importer under clause (ii) shall
apply to the quantity of gasoline produced or distributed by the
refinery or importer in the calendar year only to the extent that the
quantity is less than or equal to the average annual quantity of
reformulated gasoline produced or distributed by the refinery or
importer during calendar years 1999 and 2000.
`(II) Applicability of other standards- For any calendar year,
the quantity of gasoline produced or distributed by a refinery or
importer that is in excess of the quantity subject to subclause (I)
shall be subject to standards for toxic air pollutants promulgated
under subparagraph (A) and paragraph (3)(B).
`(iv) Credit program- The Administrator shall provide for the
granting and use of credits for emissions of toxic air pollutants in the
same manner as provided in paragraph (7).
`(v) Regional protection of toxics reduction baselines-
`(I) In general- Not later than 60 days after the date of
enactment of this subparagraph, and not later than April 1 of each
calendar year that begins after that date of enactment, the
Administrator shall publish in the Federal Register a report that
specifies, with respect to the previous calendar
year--
`(aa) the quantity of reformulated gasoline produced that is in
excess of the average annual quantity of reformulated gasoline produced in 1999
and 2000; and
`(bb) the reduction of the average annual aggregate emissions of
toxic air pollutants in each PADD, based on retail survey data or data from
other appropriate sources.
`(II) Effect of failure to maintain aggregate toxics
reductions- If, in any calendar year, the reduction of the average
annual aggregate emissions of toxic air pollutants in a PADD fails to
meet or exceed the reduction of the average annual aggregate emissions
of toxic air pollutants in the PADD in calendar years 1999 and 2000,
the Administrator, not later than 90 days after the date of
publication of the report for the calendar year under subclause (I),
shall--
`(aa) identify, to the maximum extent practicable, the reasons
for the failure, including the sources, volumes, and characteristics of
reformulated gasoline that contributed to the failure; and
`(bb) promulgate revisions to the regulations promulgated under
clause (ii), to take effect not earlier than 180 days but not later than 270
days after the date of promulgation, to provide that, notwithstanding clause
(iii)(II), all reformulated gasoline produced or distributed at each refinery or
importer shall meet the standards applicable under clause (iii) not later than
April 1 of the year following the report in subclause (II) and for subsequent
years.
`(vi) Regulations to control hazardous air pollutants from motor
vehicles and motor vehicle fuels- Not later than July 1, 2004, the
Administrator shall promulgate final regulations to control hazardous
air pollutants from motor vehicles and motor vehicle fuels, as provided
for in section 80.1045 of title 40, Code of Federal Regulations (as in
effect on the date of enactment of this
subparagraph).'.
(c) Consolidation in Reformulated Gasoline Regulations- Not later than
180 days after the date of enactment of this Act, the Administrator shall
revise the reformulated gasoline regulations under subpart D of part 80 of
title 40, Code of Federal Regulations, to consolidate the regulations
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that title by
eliminating the less stringent requirements applicable to gasoline designated
for VOC-Control Region 2 and instead applying the more stringent requirements
applicable to gasoline designated for VOC-Control Region 1.
(d) Savings Clause- Nothing in this section is intended to affect or
prejudice any legal claims or actions with respect to regulations promulgated
by the Administrator prior to enactment of this Act regarding emissions of
toxic air pollutants from motor vehicles.
(e) Determination Regarding a State Petition- Section 211(k) of the
Clean Air Act (42 U.S.C. 7545(k)) is amended by inserting after paragraph (10)
the following:
`(11) Determination regarding a state petition-
`(A) In general- Notwithstanding any other provision of this
section, not less than 30 days after enactment of this paragraph the
Administrator must determine the adequacy of any petition received from a
Governor of a State to exempt gasoline sold in that State from the
requirements of paragraph (2)(B).
`(B) APPROVAL- If the determination in (A) is not made within
thirty days of enactment of this paragraph, the petition shall be deemed
approved.'.
SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL
ADDITIVES.
Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is
amended--
(A) by striking `may also' and inserting `shall, on a regular
basis,'; and
(B) by striking subparagraph (A) and inserting the
following:
`(A) to conduct tests to determine potential public health and
environmental effects of the fuel or additive (including carcinogenic,
teratogenic, or mutagenic effects); and'; and
(2) by adding at the end the following:
`(4) STUDY ON CERTAIN FUEL ADDITIVES AND BLENDSTOCKS-
`(A) IN GENERAL- Not later than 2 years after the date of
enactment of this paragraph, the Administrator shall--
`(i) conduct a study on the effects on public health, air
quality, and water resources of increased use of, and the feasibility of
using as substitutes for methyl tertiary butyl ether in
gasoline--
`(I) ethyl tertiary butyl ether;
`(II) tertiary amyl methyl ether;
`(III) di-isopropyl ether;
`(IV) tertiary butyl alcohol;
`(V) other ethers and heavy alcohols, as determined by then
Administrator;
`(ii) conduct a study on the effects on public health, air
quality, and water resources of the adjustment for ethanol-blended
reformulated gasoline to the VOC performance requirements otherwise
applicable under sections 211(k)(1) and 211(k)(3) of the Clean Air
Act.
`(iii) submit to the Committee on Environment and Public Works
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report describing the results of these
studies.
`(B) CONTRACTS FOR STUDY- In carrying out this paragraph, the
Administrator may enter into one or more contracts with nongovernmental
entities including but not limited to National Energy Laboratories and
institutions of higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)).'.
SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by
section 820(a)) is amended by inserting after subsection (o) the
following:
`(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES AND EMISSIONS MODEL-
`(1) ANTI-BACKSLIDING ANALYSIS-
`(A) DRAFT ANALYSIS- Not later than 4 years after the date of
enactment of this paragraph, the Administrator shall publish for public
comment a draft analysis of the changes in emissions of air pollutants and
air quality due to the use of motor vehicle fuel and fuel additives
resulting from implementation of the amendments made by the Federal
Reformulated Fuels Act of 2002.
`(B) FINAL ANALYSIS- After providing a reasonable opportunity for
comment but not later than 5 years after the date of enactment of this
paragraph, the Administrator shall publish the analysis in final
form.
`(2) EMISSIONS MODEL- For the purposes of this subsection, as soon
as the necessary data are available, the Administrator shall develop and
finalize an emissions model that reasonably reflects the effects of gasoline
characteristics or components on emissions from vehicles in the motor
vehicle fleet during calendar year 2005.'.
SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE
PROGRAM.
Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is
amended--
(1) by striking `(6) OPT-IN AREAS- (A) Upon' and inserting the
following:
(2) in subparagraph (B), by striking `(B) If' and inserting the
following:
`(ii) EFFECT OF INSUFFICIENT DOMESTIC CAPACITY TO PRODUCE
REFORMULATED GASOLINE- If';
(3) in subparagraph (A)(ii) (as redesignated by paragraph
(2))--
(A) in the first sentence, by striking `subparagraph (A)' and
inserting `clause (i)'; and
(B) in the second sentence, by striking `this paragraph' and
inserting `this subparagraph'; and
(4) by adding at the end the following:
`(B) OZONE TRANSPORT REGION-
`(i) APPLICATION OF PROHIBITION-
`(I) IN GENERAL- In addition to the provisions of subparagraph
(A), upon the application of the Governor of a State in the ozone
transport region established by section 184(a), the Administrator, not
later than 180 days after the date of receipt of the application,
shall apply the prohibition specified in paragraph (5) to any area in
the State (other than an area classified as a marginal, moderate,
serious, or severe ozone nonattainment area under subpart 2 of part D
of title I) unless the Administrator determines under clause (iii)
that there is insufficient capacity to supply reformulated
gasoline.
`(II) PUBLICATION OF APPLICATION- As soon as practicable after
the date of receipt of an application under subclause (I), the
Administrator shall publish the application in the Federal
Register.
`(ii) PERIOD OF APPLICABILITY- Under clause (i), the prohibition
specified in paragraph (5) shall apply in a State--
`(I) commencing as soon as practicable but not later than 2
years after the date of approval by the Administrator of the
application of the Governor of the State; and
`(II) ending not earlier than 4 years after the commencement
date determined under subclause (I).
`(iii) EXTENSION OF COMMENCEMENT DATE BASED ON INSUFFICIENT
CAPACITY-
`(I) IN GENERAL- If, after receipt of an application from a
Governor of a State under clause (i), the Administrator determines, on
the Administrator's own motion or on petition of any person, after
consultation with the Secretary of Energy, that there is insufficient
capacity to supply reformulated gasoline, the Administrator, by
regulation--
`(aa) shall extend the commencement date with respect to the
State under clause (ii)(I) for not more than 1 year; and
`(bb) may renew the extension under item (aa) for two additional
periods, each of which shall not exceed 1 year.
`(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator
shall act on any petition submitted under subclause (I) not later than
180 days after the date of receipt of the
petition.'.
SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is
amended--
(1) by striking `(C) A State' and inserting the
following:
`(C) AUTHORITY OF STATE TO CONTROL FUELS AND FUEL ADDITIVES FOR
REASONS OF NECESSITY-
`(i) IN GENERAL- A State'; and
(2) by adding at the end the following:
`(ii) ENFORCEMENT BY THE ADMINISTRATOR- In any case in which a
State prescribes and enforces a control or prohibition under clause (i),
the Administrator, at the request of the State, shall enforce the
control or prohibition as if the control or prohibition had been adopted
under the other provisions of this section.'.
SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.
(1) IN GENERAL- The Administrator of the Environmental Protection
Agency and the Secretary of Energy shall jointly conduct a study of Federal,
State, and local requirements concerning motor vehicle fuels,
including--
(A) requirements relating to reformulated gasoline, volatility
(measured in Reid vapor pressure), oxygenated fuel, and diesel fuel;
and
(B) other requirements that vary from State to State, region to
region, or locality to locality.
(2) REQUIRED ELEMENTS- The study shall assess--
(A) the effect of the variety of requirements described in
paragraph (1) on the supply, quality, and price of motor vehicle fuels
available to the consumer;
(B) the effect of the requirements described in paragraph (1) on
achievement of--
(i) national, regional, and local air quality standards and
goals; and
(ii) related environmental and public health protection
standards and goals;
(C) the effect of Federal, State, and local motor vehicle fuel
regulations, including multiple motor vehicle fuel requirements,
on--
(ii) the fuel distribution system; and
(iii) industry investment in new capacity;
(D) the effect of the requirements described in paragraph (1) on
emissions from vehicles, refineries, and fuel handling
facilities;
(E) the feasibility of developing national or regional motor
vehicle fuel slates for the 48 contiguous States that, while protecting
and improving air quality at the national, regional, and local levels,
could--
(i) enhance flexibility in the fuel distribution infrastructure
and improve fuel fungibility;
(ii) reduce price volatility and costs to consumers and
producers;
(iii) provide increased liquidity to the gasoline market;
and
(iv) enhance fuel quality, consistency, and supply;
and
(F) the feasibility of providing incentives, and the need for the
development of national standards necessary, to promote cleaner burning
motor vehicle fuel.
(1) IN GENERAL- Not later than June 1, 2006, the Administrator of
the Environmental Protection Agency and the Secretary of Energy shall submit
to Congress a report on the results of the study conducted under subsection
(a).
(A) IN GENERAL- The report shall contain recommendations for
legislative and administrative actions that may be taken--
(i) to improve air quality;
(ii) to reduce costs to consumers and producers;
and
(iii) to increase supply liquidity.
(B) REQUIRED CONSIDERATIONS- The recommendations under
subparagraph (A) shall take into account the need to provide advance
notice of required modifications to refinery and fuel distribution systems
in order to ensure an adequate supply of motor vehicle fuel in all
States.
(3) CONSULTATION- In developing the report, the Administrator of the
Environmental Protection Agency and the Secretary of Energy shall consult
with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and distributors;
and
SEC. 840. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING TO USE OF
RECYCLED PRODUCTS AND FLEET AND TRANSPORTATION EFFICIENCY.
Not later than 180 days after the date of enactment of this Act, the
Administrator of General Services shall submit to Congress a report that
details efforts by each Federal agency to implement the procurement policies
specified in Executive Order No. 13101 (63 Fed. Reg. 49643; relating to
governmental use of recycled products) and Executive Order No. 13149 (65 Fed.
Reg. 24607; relating to Federal fleet and transportation efficiency).
TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME
CONSUMERS
Subtitle A--Low Income Assistance and State Energy
Programs
SEC. 901. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION ASSISTANCE, AND
STATE ENERGY GRANTS.
(a) LIHEAP- (1) Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking the first
sentence and inserting the following: `There are authorized to be appropriated
to carry out the provisions of this title (other than section 2607A),
$3,400,000,000 for each of fiscal years 2003 through 2005.'.
(2) Section 2602(e) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621(e)) is amended by striking `$600,000,000' and inserting
`$1,000,000,000'.
(3) Section 2609A(a) of the Low-Income Energy Assistance Act of 1981
(42 U.S.C. 8628a(a)) is amended by striking `not more than $300,000' and
inserting: `not more than $750,000'.
(b) WEATHERIZATION ASSISTANCE- Section 422 of the Energy Conservation
and Production Act (42 U.S.C. 6872) is amended by striking `for fiscal years
1999 through 2003 such sums as may be necessary.' and inserting: `$325,000,000
for fiscal year 2003, $400,000,000 for fiscal year 2004, and $500,000,000 for
fiscal year 2005.'.
SEC. 902. STATE ENERGY PROGRAMS.
(a) STATE ENERGY CONSERVATION PLANS- Section 362 of the Energy Policy
and Conservation Act (42 U.S.C. 6322)) is amended by adding at the end the
following:
`(g) The Secretary shall, at least once every 3 years, invite the
Governor of each State to review and, if necessary, revise the energy
conservation plan of the State submitted under subsection (b) or (e). Such
reviews should consider the energy conservation plans of other States within
the region, and identify opportunities and actions that may be carried out in
pursuit of common energy conservation goals.'.
(b) STATE ENERGY CONSERVATION GOALS- Section 364 of the Energy Policy
and Conservation Act (42 U.S.C. 6324) is amended to read as follows:
`SEC. 364. Each State energy conservation plan with respect to which
assistance is made available under this part on or after the date of enactment
of the Energy Policy Act of 2002 shall contain a goal, consisting of an
improvement of 25 percent or more in the efficiency of use of energy in the
State concerned in calendar year 2010 as compared to calendar year 1990, and
may contain interim goals.'.
(c) STATE ENERGY CONSERVATION GRANTS- Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking `for
fiscal years 1999 through 2003 such sums as may be necessary.' and inserting:
`$100,000,000 for each of fiscal years 2003 and 2004; $125,000,000 for fiscal
year 2005; and such sums as may be necessary for each fiscal year
thereafter.'.
SEC. 903. ENERGY EFFICIENT SCHOOLS.
(a) ESTABLISHMENT- There is established in the Department of Energy
the High Performance Schools Program (in this section referred to as the
`Program').
(b) GRANTS- The Secretary of Energy may make grants to a State energy
office--
(1) to assist school districts in the State to improve the energy
efficiency of school buildings;
(2) to administer the Program; and
(3) to promote participation in the Program.
(c) GRANTS TO ASSIST SCHOOL DISTRICTS- The Secretary shall condition
grants under subsection (b)(1) on the State energy office using the grants to
assist school districts that have demonstrated--
(1) a need for the grants to build additional school buildings to
meet increasing elementary or secondary enrollments or to renovate existing
school buildings; and
(2) a commitment to use the grant funds to develop high performance
school buildings in accordance with a plan that the State energy office, in
consultation with the State educational agency, has determined is feasible
and appropriate to achieve the purposes for which the grant is
made.
(d) GRANTS FOR ADMINISTRATION- Grants under subsection (b)(2) shall be
used to--
(1) evaluate compliance by school districts with requirements of
this section;
(2) distribute information and materials to clearly define and
promote the development of high performance school buildings for both new
and existing facilities;
(3) organize and conduct programs for school board members, school
personnel, architects, engineers, and others to advance the concepts of high
performance school buildings;
(4) obtain technical services and assistance in planning and
designing high performance school buildings; or
(5) collect and monitor data and information pertaining to the high
performance school building projects.
(e) GRANTS TO PROMOTE PARTICIPATION- Grants under subsection (b)(3)
shall be used for promotional and marketing activities, including facilitating
private and public financing, promoting the use of energy savings performance
contracts, working with school administrations, students, and communities, and
coordinating public benefit programs.
(f) SUPPLEMENTING GRANT FUNDS- The State energy office shall encourage
qualifying school districts to supplement funds awarded pursuant to this
section with funds from other sources in the implementation of their
plans.
(g) ALLOCATIONS- Except as provided in subsection (h), funds
appropriated to carry out this section shall be allocated as follows:
(1) 70 percent shall be used to make grants under subsection
(b)(1).
(2) 15 percent shall be used to make grants under subsection
(b)(2).
(3) 15 percent shall be used to make grants under subsection
(b)(3).
(h) OTHER FUNDS- The Secretary of Energy may retain an amount, not to
exceed $300,000 per year, to assist State energy offices in coordinating and
implementing the Program. Such funds may be used to develop reference
materials to further define the principles and criteria to achieve high
performance school buildings.
(i) AUTHORIZATION OF APPROPRIATIONS- For grants under subsection (b)
there are authorized to be appropriated--
(1) $200,000,000 for fiscal year 2003;
(2) $210,000,000 for fiscal year 2004;
(3) $220,000,000 for fiscal year 2005;
(4) $230,000,000 for fiscal year 2006; and
(5) such sums as may be necessary for fiscal year 2007 and each
fiscal year thereafter through fiscal year 2012.
(j) DEFINITIONS- For purposes of this section:
(1) HIGH PERFORMANCE SCHOOL BUILDING- The term `high performance
school building' means a school building that, in its design, construction,
operation, and maintenance--
(A) maximizes use of renewable energy and energy-efficient
technologies and systems;
(B) is cost-effective on a life-cycle basis;
(i) the applicable Energy Star building energy performance
ratings; or
(ii) energy consumption levels at least 30 percent below those
of the most recent version of ASHRAE Standard 90.1;
(D) uses affordable, environmentally preferable, and durable
materials;
(E) enhances indoor environmental quality;
(F) protects and conserves water; and
(G) optimizes site potential.
(2) RENEWABLE ENERGY- The term `renewable energy' means energy
produced by solar, wind, biomass, ocean, geothermal, or hydroelectric
power.
(3) SCHOOL- The term `school' means--
(A) an `elementary school' as that term is defined in section
14101(14) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(14)),
(B) a `secondary school' as that term is defined in section
14101(25) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(25)), or
(C) an elementary or secondary Indian school funded by the Bureau
of Indian Affairs.
(4) STATE EDUCATIONAL AGENCY- The term `State educational agency'
has the same meaning given such term in section 14101(28) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801(28)).
(5) STATE ENERGY OFFICE- The term `State energy office' means the
State agency responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42 U.S.C.
6322), or, if no such agency exists, a State agency designated by the
Governor of the State.
SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.
(a) GRANTS- The Secretary of Energy is authorized to make grants to
units of local government, private, non-profit community development
organizations, and Indian tribe economic development entities to improve
energy efficiency, identify and develop alternative renewable and distributed
energy supplies, and increase energy conservation in low income rural and
urban communities.
(b) PURPOSE OF GRANTS- The Secretary may make grants on a competitive
basis for--
(1) investments that develop alternative renewable and distributed
energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy efficiency in
low income rural and urban communities;
(4) planning and development assistance for increasing the energy
efficiency of buildings and facilities; and
(5) technical and financial assistance to local government and
private entities on developing new renewable and distributed sources of
power or combined heat and power generation.
(c) DEFINITION- For purposes of this section, the term `Indian tribe'
means any Indian tribe, band, nation, or other organized group or community,
including any Alaskan Native village or regional or village corporation as
defined in or established pursuant to the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.), which is recognized as eligible for the special
programs and services provided by the United States to Indians because of
their status as Indians.
(d) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section
there are authorized to be appropriated to the Secretary of Energy an amount
not to exceed $20,000,000 for fiscal year 2003 and each fiscal year thereafter
through fiscal year 2005.
SEC. 905. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) DEFINITIONS- In this section:
(1) ELIGIBLE STATE- The term `eligible State' means a State that
meets the requirements of subsection (b).
(2) ENERGY STAR PROGRAM- The term `Energy Star program' means the
program established by section 324A of the Energy Policy and Conservation
Act.
(3) RESIDENTIAL ENERGY STAR PRODUCT- The term `residential Energy
Star product' means a product for a residence that is rated for energy
efficiency under the Energy Star program.
(4) STATE ENERGY OFFICE- The term `State energy office' means the
State agency responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42 U.S.C.
6322).
(5) STATE PROGRAM- The term `State program' means a State energy
efficient appliance rebate program described in subsection
(b)(1).
(b) ELIGIBLE STATES- A State shall be eligible to receive an
allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy efficient
appliance rebate program to provide rebates to residential consumers for the
purchase of residential Energy Star products to replace used appliances of
the same type;
(2) submits an application for the allocation at such time, in such
form, and containing such information as the Secretary may require;
and
(3) provides assurances satisfactory to the Secretary that the State
will use the allocation to supplement, but not supplant, funds made
available to carry out the State program.
(c) AMOUNT OF ALLOCATIONS-
(1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the
Secretary shall allocate to the State energy office of each eligible State
to carry out subsection (d) an amount equal to the product obtained by
multiplying the amount made available under subsection (e) for the fiscal
year by the ratio that the population of the State in the most recent
calendar year for which data are available bears to the total population of
all eligible States in that calendar year.
(2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated
under this subsection shall be adjusted proportionately so that no eligible
State is allocated a sum that is less than an amount determined by the
Secretary.
(d) USE OF ALLOCATED FUNDS- The allocation to a State energy office
under subsection (c) may be used to pay up to 50 percent of the cost of
establishing and carrying out a State program.
(e) ISSUANCE OF REBATES- Rebates may be provided to residential
consumers that meet the requirements of the State program. The amount of a
rebate shall be determined by the State energy office, taking into
consideration--
(1) the amount of the allocation to the State energy office under
subsection (c);
(2) the amount of any Federal or State tax incentive available for
the purchase of the residential Energy Star product; and
(3) the difference between the cost of the residential Energy Star
product and the cost of an appliance that is not a residential Energy Star
product, but is of the same type as, and is the nearest capacity,
performance, and other relevant characteristics (as determined by the State
energy office) to the residential Energy Star product.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for fiscal
year 2003 through fiscal year 2012.
Subtitle B--Federal Energy Efficiency
SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.
(a) ENERGY REDUCTION GOALS- Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended to read as
follows:
`(1) 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 per gross square foot of
the Federal buildings of the agency in fiscal years 2002 through 2011 is
reduced, as compared with the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal year 2000, by the percentage
specified in the following table:
`Fiscal Year
Percentage reduction
--2
--4
--6
--8
--10
--12
--14
--16
--18
--20.'.
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE REQUIREMENT- Section
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is
further amended by adding at the end the following:
`(3) Not later than December 31, 2010, the Secretary shall review
the results of the implementation of the energy performance requirement
established under paragraph (1) and submit to Congress recommendations
concerning energy performance requirements for calendar years 2012 through
2021.'.
(c) EXCLUSIONS- Section 543(c)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)(1)) is amended to read as follows:
`(1)(A) An agency may exclude, from the energy performance
requirement for a calendar year established under subsection (a) and the
energy management requirement established under subsection (b), any Federal
building or collection of Federal buildings, if the head of the agency finds
that--
`(i) compliance with those requirements would be
impracticable;
`(ii) the agency has completed and submitted all federally
required energy management reports;
`(iii) the agency has achieved compliance with the energy
efficiency requirements of this Act, the Energy Policy Act of 1992,
Executives Orders, and other Federal law; and
`(iv) the agency has implemented all practicable, life-cycle
cost-effective projects with respect to the Federal building or collection
of Federal buildings to be excluded.
`(B) A finding of impracticability under subparagraph (A)(i) shall
be based on--
`(i) the energy intensiveness of activities carried out in the
Federal building or collection of Federal buildings; or
`(ii) the fact that the Federal building or collection of Federal
buildings is used in the performance of a national security
function.'.
(d) REVIEW BY SECRETARY- Section 543(c)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
(1) by striking `impracticability standards' and inserting
`standards for exclusion'; and
(2) by striking `a finding of impracticability' and inserting `the
exclusion'.
(e) CRITERIA- Section 543(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end the
following:
`(3) Not later than 180 days after the date of enactment of this
paragraph, the Secretary shall issue guidelines that establish criteria for
exclusions under paragraph (1).'.
(f) REPORTS- Section 548(b) of the National Energy Conservation Policy
Act (42 U.S.C. 8258(b)) is amended--
(1) in the subsection heading, by inserting `THE PRESIDENT AND'
before `CONGRESS'; and
(2) by inserting `President and' before `Congress'.
(g) CONFORMING AMENDMENT- Section 550(d) of the National Energy
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second sentence
by striking `the 20 percent reduction goal established under section 543(a) of
the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).' and
inserting `each of the energy reduction goals established under section
543(a).'.
SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act (42 U.S.C.
8253) is further amended by adding at the end the following:
`(e) Metering of Energy Use-
`(1) DEADLINE- By October 1, 2004, all Federal buildings shall, for
the purposes of efficient use of energy and reduction in the cost of
electricity used in such buildings, be metered or submetered in accordance
with guidelines established by the Secretary under paragraph (2). Each
agency shall use, to the maximum extent practicable, advanced meters or
advanced metering devices that provide data at least daily and that measure
at least hourly consumption of electricity in the Federal buildings of the
agency. Such data shall be incorporated into existing Federal energy
tracking systems and made available to Federal facility energy
managers.
`(A) IN GENERAL- Not later than 180 days after the date of
enactment of this subsection, the Secretary, in consultation with the
Department of Defense, the General Services Administration and
representatives from the metering industry, utility industry, energy
services industry, energy efficiency industry, national laboratories,
universities and Federal facility energy managers, shall establish
guidelines for agencies to carry out paragraph (1).
`(B) REQUIREMENTS FOR GUIDELINES- The guidelines
shall--
`(i) take into consideration--
`(I) the cost of metering and 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 due to utility contract
aggregation; and
`(III) the measurement and verification protocols of the
Department of Energy;
`(ii) include recommendations concerning the amount of funds and
the number of trained personnel necessary to gather and use the metering
information to track and reduce energy use;
`(iii) establish one or more dates, not later than 1 year after
the date of issuance of the guidelines, on which the requirements
specified in paragraph (1) shall take effect; and
`(iv) establish exclusions from the requirements specified in
paragraph (1) based on the de minimus quantity of energy use of a
Federal building, industrial process, or structure.
`(3) PLAN- No later than 6 months after the date guidelines are
established under paragraph (2), in a report submitted by the agency under
section 548(a), each agency shall submit to the Secretary a plan
describing how the agency will implement the requirements of paragraph
(1), including (A) how the agency will designate personnel primarily
responsible for achieving the requirements and (B) demonstration by the
agency, complete with documentation, of any finding that advanced meters
or advanced metering devices, as defined in paragraph (1), are not
practicable.'.
SEC. 913. FEDERAL BUILDING PERFORMANCE STANDARDS.
(a) REVISED STANDARDS- Section 305(a) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)) is amended--
(1) in paragraph (2)(A), by striking `CABO Model Energy Code, 1992'
and inserting `the 2000 International Energy Conservation Code';
and
(2) by adding at the end the following:
`(3) Revised federal building energy efficiency performance
standards-
`(A) IN GENERAL- Not later than 1 year after the date of enactment
of this paragraph, the Secretary of Energy shall establish, by rule,
revised Federal building energy efficiency performance standards that
require that, if cost-effective--
`(i) new commercial buildings and multifamily high rise
residential buildings be constructed so as to achieve the applicable
Energy Star building energy performance ratings or energy consumption
levels at least 30 percent below those of the most recent ASHRAE
Standard 90.1, whichever results in the greater increase in energy
efficiency;
`(ii) new residential buildings (other than those described in
clause (i)) be constructed so as to achieve the applicable Energy Star
building energy performance ratings or achieve energy consumption levels
at least 30 percent below the requirements of the most recent version of
the International Energy Conservation Code, whichever results in the
greater increase in energy efficiency; and
`(iii) sustainable design principles are applied to the siting,
design, and construction of all new and replacement
buildings.
`(B) ADDITIONAL REVISIONS- Not later than 1 year after the date of
approval of amendments to ASHRAE Standard 90.1 or the 2000 International
Energy Conservation Code, the Secretary of Energy shall determine, based
on the cost-effectiveness of the requirements under the amendments,
whether the revised standards established under this paragraph should be
updated to reflect the amendments.
`(C) STATEMENT ON COMPLIANCE OF NEW BUILDINGS- 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 of the Federal agency;
and
`(ii) a statement concerning whether the Federal buildings meet
or exceed the revised standards established under this paragraph,
including a monitoring and commissioning report that is in compliance
with the measurement and verification protocols of the Department of
Energy.
`(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this paragraph and to
implement the revised standards established under this
paragraph.'.
(b) ENERGY LABELING PROGRAM- Section 305(a) of the Energy Conservation
and Production Act (42 U.S.C. 6834(a)) is further amended by adding at the end
the following:
`(e) ENERGY LABELING PROGRAM- The Secretary of Energy, in cooperation
with the Administrator of the Environmental Protection Agency, shall develop
an energy labeling program for new Federal buildings that exceed the revised
standards established under subsection (a)(3) by 15 percent or more.'.
SEC. 914. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) REQUIREMENTS- Part 3 of title V of the National Energy
Conservation Policy Act is amended by adding at the end the following:
`SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
`(a) DEFINITIONS- In this section:
`(1) ENERGY STAR PRODUCT- The term `Energy Star product' means a
product that is rated for energy efficiency under an Energy Star
program.
`(2) ENERGY STAR PROGRAM- The term `Energy Star program' means the
program established by section 324A of the Energy Policy and Conservation
Act.
`(3) EXECUTIVE AGENCY- 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) FEMP DESIGNATED PRODUCT- The term `FEMP designated product'
means a product that is designated under the Federal Energy Management
Program of the Department of Energy as being among the highest 25 percent of
equivalent products for energy efficiency.
`(b) PROCUREMENT OF ENERGY EFFICIENT PRODUCTS-
`(1) REQUIREMENT- To meet the requirements of an executive agency
for an energy consuming product, the head of the executive agency shall,
except as provided in paragraph (2), procure--
`(A) an Energy Star product; or
`(B) a FEMP designated product.
`(2) EXCEPTIONS- The head of an executive agency is not required to
procure an Energy Star product or FEMP designated product under paragraph
(1) if--
`(A) an Energy Star product or FEMP designated product is not cost
effective over the life cycle of the product; or
`(B) no Energy Star product or FEMP designated product is
reasonably available that meets the requirements of the executive
agency.
`(3) PROCUREMENT PLANNING- The head of an executive agency shall
incorporate into the specifications for all procurements involving energy
consuming products and systems, and into the factors for the evaluation of
offers received for the procurement, criteria for energy efficiency that are
consistent with the criteria used for rating Energy Star products and for
rating FEMP designated products.
`(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN FEDERAL CATALOGS- Energy
Star and FEMP designated products shall be clearly identified and prominently
displayed in any inventory or listing of products by the General Services
Administration or the Defense Logistics Agency.
(b) CONFORMING AMENDMENT- The table of contents in section 1(b) of the
National Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended by
inserting after the item relating to section 551 the following:
`Sec. 552. Federal Government procurement of energy efficient
products.'
(c) REGULATIONS- Not later than 180 days after the effective date
specified in subsection (f), the Secretary of Energy shall issue guidelines to
carry out section 552 of the National Energy Conservation Policy Act (as added
by subsection (a)).
(d) DESIGNATION OF ENERGY STAR PRODUCTS- The Administrator of the
Environmental Protection Agency and the Secretary of Energy shall expedite the
process of designating products as Energy Star products (as defined in section
552 of the National Energy Conservation Policy Act (as added by subsection
(a)).
(e) DESIGNATION OF ELECTRIC MOTORS- In the case of electric motors of
1 to 500 horsepower, agencies shall select only premium efficient motors that
meet a standard designated by the Secretary. The Secretary shall designate
such a standard within 120 days of the enactment of this paragraph, after
considering the recommendations of associated electric motor manufacturers and
energy efficiency groups.
(f) EFFECTIVE DATE- Subsection (a) and the amendment made by that
subsection take effect on the date that is 180 days after the date of
enactment of this Act.
SEC. 915. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT
SUNSET.
Section 801(c) of the National Energy Conservation Policy Act (42
U.S.C. 8287(c)) is repealed.
SEC. 916. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.
(a) ENERGY SAVINGS- Section 804(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8287c(2)) is amended to read as follows:
`(2) The term `energy savings' means a reduction in the cost of
energy or water, from a base cost established through a methodology set
forth in the contract, used in an existing federally owned building or
buildings or other federally owned facilities as a result of--
`(A) the lease or purchase of operating equipment, improvements,
altered operation and maintenance, or technical services;
`(B) the increased efficient use of existing energy sources by
cogeneration or heat recovery, excluding any cogeneration process for
other than a federally owned building or buildings or other federally
owned facilities; or
`(C) the increased efficient use of existing water
sources.'.
(b) ENERGY SAVINGS CONTRACT- Section 804(3) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as
follows:
`(3) The terms `energy savings contract' and `energy savings
performance contract' mean a contract which provides for the performance of
services for the design, acquisition, installation, testing, operation, and,
where appropriate, maintenance and repair, of an identified energy or water
conservation measure or series of measures at one or more
locations.'.
(c) ENERGY OR WATER CONSERVATION MEASURE- Section 804(4) of the
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended to
read as follows:
`(4) The term `energy or water conservation measure'
means--
`(A) an energy conservation measure, as defined in section 551(4)
(42 U.S.C. 8259(4)); or
`(B) a water conservation measure that improves water efficiency,
is life cycle cost effective, and involves water conservation, water
recycling or reuse, more efficient treatment of wastewater or stormwater,
improvements in operation or maintenance efficiencies, retrofit activities
or other related activities, not at a Federal hydroelectric
facility.'.
SEC. 917. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT
PROGRAM.
Within 180 days after the date of the enactment of this Act, the
Secretary of Energy shall complete a review of the Energy Savings Performance
Contract program to identify statutory, regulatory, and administrative
obstacles that prevent Federal agencies from fully utilizing the program. In
addition, this review shall identify all areas for increasing program
flexibility and effectiveness, including audit and measurement verification
requirements, accounting for energy use in determining savings, contracting
requirements, and energy efficiency services covered. The Secretary shall
report these findings to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural Resources of the
Senate, and shall implement identified administrative and regulatory changes
to increase program flexibility and effectiveness to the extent that such
changes are consistent with statutory authority.
SEC. 918. FEDERAL ENERGY BANK.
Part 3 of title V of the National Energy Conservation Policy Act is
amended by adding at the end the following:
`SEC. 553. FEDERAL ENERGY BANK.
`(a) DEFINITIONS- In this section:
`(1) BANK- The term `Bank' means the Federal Energy Bank established
by subsection (b).
`(2) ENERGY OR WATER EFFICIENCY PROJECT- The term `energy or water
efficiency project' means a project that assists a Federal agency in meeting
or exceeding the energy or water efficiency requirements of--
`(C) subtitle F of title I of the Energy Policy Act of 1992 (42
U.S.C. 8262 et seq.); or
`(D) any applicable Executive order, including Executive Order No.
13123.
`(3) FEDERAL AGENCY- The term `Federal agency' means--
`(A) an Executive agency (as defined in section 105 of title 5,
United States Code);
`(B) the United States Postal Service;
`(C) Congress and any other entity in the legislative branch;
and
`(D) a Federal court and any other entity in the judicial
branch.
`(b) ESTABLISHMENT OF BANK-
`(1) IN GENERAL- There is established in the Treasury of the United
States a fund to be known as the `Federal Energy Bank', consisting
of--
`(A) such amounts as are deposited in the Bank under paragraph
(2);
`(B) such amounts as are repaid to the Bank under subsection
(c)(2)(D); and
`(C) any interest earned on investment of amounts in the Bank
under paragraph (3).
`(A) IN GENERAL- Subject to the availability of appropriations and
to subparagraph (B), the Secretary of the Treasury shall deposit in the
Bank an amount equal to $250,000,000 in fiscal year 2003 and in each
fiscal year thereafter.
`(B) MAXIMUM AMOUNT IN BANK- Deposits under subparagraph (A) shall
cease beginning with the fiscal year following the fiscal year in which
the amounts in the Bank (including amounts on loan from the Bank) become
equal to or exceed $1,000,000,000.
`(3) INVESTMENT OF AMOUNTS- The Secretary of the Treasury shall
invest such portion of the Bank as is not, in the judgment of the Secretary,
required to meet current withdrawals. Investments may be made only in
interest-bearing obligations of the United States.
`(c) LOANS FROM THE BANK-
`(1) IN GENERAL- The Secretary of the Treasury shall transfer from
the Bank to the Secretary such amounts as are appropriated to carry out the
loan program under paragraph (2).
`(i) IN GENERAL- In accordance with subsection (d), the
Secretary, in consultation with the Secretary of Defense, the
Administrator of General Services, and the Director of the Office of
Management and Budget, shall establish a program to make loans of
amounts in the Bank to any Federal agency that submits an application
satisfactory to the Secretary in order to pay the costs of a project
described in subparagraph (C).
`(ii) COMMENCEMENT OF OPERATIONS- The Secretary may
begin--
`(I) accepting applications for loans from the Bank in fiscal
year 2002; and
`(II) making loans from the Bank in fiscal year
2003.
`(B) ENERGY SAVINGS PERFORMANCE CONTRACTING FUNDING- To the extent
practicable, an agency shall not submit a project for which energy
performance contracting funding is available and is acceptable to the
Federal agency under title VIII.
`(i) IN GENERAL- A loan from the Bank may be used to
pay--
`(I) the costs of an energy or water efficiency project, or a
renewable or alternative energy project, for a new or existing Federal
building (including selection and design of the
project);
`(II) the costs of an energy metering plan and metering
equipment installed pursuant to section 543(e) or for the purpose of
verification of the energy savings under an energy savings performance
contract under title VIII; or
`(III) at the time of contracting, the costs of cofunding of
an energy savings performance contract (including a utility energy
service agreement) in order to shorten the payback period of the
project that is the subject of the energy savings performance
contract.
`(ii) LIMITATION- A Federal agency may use not more than 10
percent of the amount of a loan under subclause (I) or (II) of clause
(i) to pay the costs of administration and proposal development
(including data collection and energy surveys).
`(iii) RENEWABLE AND ALTERNATIVE ENERGY PROJECTS- Not more than
25 percent of the amount on loan from the Bank at any time may be loaned
for renewable energy and alternative energy projects (as defined by the
Secretary in accordance with applicable law (including Executive
Orders)).
`(i) IN GENERAL- Subject to clauses (ii) through (iv), a Federal
agency shall repay to the Bank the principal amount of a loan plus
interest at a rate determined by the President, in consultation with the
Secretary and the Secretary of the Treasury.
`(ii) WAIVER OR REDUCTION OF INTEREST- The Secretary may waive
or reduce the rate of interest required to be paid under clause (i) if
the Secretary determines that payment of interest by a Federal agency at
the rate determined under that clause is not required to fund the
operations of the Bank.
`(iii) DETERMINATION OF INTEREST RATE- The interest rate
determined under clause (i) shall be at a rate that is sufficient to
ensure that, beginning not later than October 1, 2007, interest payments
will be sufficient to fully fund the operations of the
Bank.
`(iv) INSUFFICIENCY OF APPROPRIATIONS-
`(I) REQUEST FOR APPROPRIATIONS- As part of the budget request
of the Federal agency for each fiscal year, the head of each Federal
agency shall submit to the President a request for such amounts as are
necessary to make such repayments as are expected to become due in the
fiscal year under this subparagraph.
`(II) SUSPENSION OF REPAYMENT REQUIREMENT- If, for any fiscal
year, sufficient appropriations are not made available to a Federal
agency to make repayments under this subparagraph, the Bank shall
suspend the requirement of repayment under this subparagraph until
such appropriations are made available.
`(E) FEDERAL AGENCY ENERGY BUDGETS- Until a loan is repaid, a
Federal agency budget submitted by the President to Congress for a fiscal
year shall not be reduced by the value of energy savings accrued as a
result of any energy conservation measure implemented using amounts from
the Bank.
`(F) NO RESCISSION OR REPROGRAMMING- A Federal agency shall not
rescind or reprogram loan amounts made available from the Bank except as
permitted under guidelines issued under subparagraph (G).
`(G) GUIDELINES- The Secretary shall issue guidelines for
implementation of the loan program under this paragraph, including
selection criteria, maximum loan amounts, and loan repayment
terms.
`(1) IN GENERAL- The Secretary shall establish criteria for the
selection of projects to be awarded loans in accordance with paragraph
(2).
`(A) IN GENERAL- The Secretary may make loans from the Bank only
for a project that--
`(i) is technically feasible;
`(ii) is determined to be cost-effective using life cycle cost
methods established by the Secretary;
`(iii) includes a measurement and management component, based on
the measurement and verification protocols of the Department of Energy,
to--
`(I) commission energy savings for new and existing Federal
facilities;
`(II) monitor and improve energy efficiency management at
existing Federal facilities; and
`(III) verify the energy savings under an energy savings
performance contract under title VIII; and
`(iv)(I) in the case of a renewable energy or alternative energy
project, has a simple payback period of not more than 15 years;
and
`(II) in the case of any other project, has a simple payback
period of not more than 10 years.
`(B) PRIORITY- In selecting projects, the Secretary shall give
priority to projects that--
`(i) are a component of a comprehensive energy management
project for a Federal facility; and
`(ii) are designed to significantly reduce the energy use of the
Federal facility.
`(1) REPORTS TO THE SECRETARY- Not later than 1 year after the
completion of installation of a project that has a cost of more than
$1,000,000, and annually thereafter, a Federal agency shall submit to the
Secretary a report that--
`(A) states whether the project meets or fails to meet the energy
savings projections for the project; and
`(B) for each project that fails to meet the energy savings
projections, states the reasons for the failure and describes proposed
remedies.
`(2) AUDITS- The Secretary may audit, or require a Federal agency
that receives a loan from the Bank to audit, any project financed with
amounts from the Bank to assess the performance of the project.
`(3) REPORTS TO CONGRESS- At the end of each fiscal year, the
Secretary shall submit to Congress a report on the operations of the Bank,
including a statement of--
`(A) the total receipts by the Bank;
`(B) the total amount of loans from the Bank to each Federal
agency; and
`(C) the estimated cost and energy savings resulting from
projects funded with loans from the Bank.
`(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.'.
SEC. 919. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL
BUILDINGS.
(a) IN GENERAL- Part 3 of title V of the National Energy Conservation
Policy Act is amended by adding at the end:
`SEC. 554. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL
BUILDINGS.
`(a) IN GENERAL- The Architect of the Capitol--
`(1) shall develop, update, and implement a cost-effective energy
conservation and management plan (referred to in this section as the `plan')
for all facilities administered by the Congress (referred to in this section
as `congressional buildings') to meet the energy performance requirements
for Federal buildings established under section 543(a)(1); and
`(2) shall submit the plan to Congress, not later than 180 days
after the date of enactment of this section.
`(b) PLAN REQUIREMENTS- The plan shall include--
`(1) a description of the life-cycle cost analysis used to determine
the cost-effectiveness of proposed energy efficiency projects;
`(2) a schedule of energy surveys to ensure complete surveys of all
congressional buildings every 5 years to determine the cost and payback
period of energy and water conservation measures;
`(3) a strategy for installation of life cycle cost effective energy
and water conservation measures;
`(4) the results of a study of the costs and benefits of
installation of submetering in congressional buildings; and
`(5) information packages and `how-to' guides for each Member and
employing authority of Congress that detail simple, cost-effective methods
to save energy and taxpayer dollars in the workplace.
`(c) CONTRACTING AUTHORITY- The Architect--
`(1) may contract with nongovernmental entities and use private
sector capital to finance energy conservation projects and meet energy
performance requirements; and
`(2) may use innovative contracting methods that will attract
private sector funding for the installation of energy efficient and
renewable energy technology, such as energy savings performance contracts
described in title VIII.
`(d) CAPITOL VISITOR CENTER- The Architect--
`(1) shall ensure that state-of-the-art energy efficiency and
renewable energy technologies are used in the construction and design of the
Visitor Center; and
`(2) shall include in the Visitor Center an exhibit on the energy
efficiency and renewable energy measures used in congressional
buildings.
`(e) ANNUAL REPORT- The Architect shall submit to Congress annually a
report on congressional energy management and conservation programs required
under this section that describes in detail--
`(1) energy expenditures and savings estimates for each
facility;---
`(2) energy management and conservation projects; and
`(3) future priorities to ensure compliance with this
section.'.
(b) REPEAL- Section 310 of the Legislative Branch Appropriations Act,
1999 (40 U.S.C. 166i), is repealed.
SEC. 920. INCREASED USE OF RECOVERED MATERIAL IN FEDERALLY FUNDED
PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE.
(a) DEFINITIONS- In this section:
(1) ADMINISTRATOR- The term `Administrator' means the Administrator
of the Environmental Protection Agency.
(2) AGENCY HEAD- The term `agency head' means--
(A) the Secretary of Transportation; and
(B) the head of each 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.
(3) 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.
(4) RECOVERED MATERIAL- The term `recovered material'
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 material 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 Act, 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 Act (including guidelines
under section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6963)) that
provide for the use of cement and concrete incorporating recovered material
in cement or concrete projects.
(2) PRIORITY- In carrying out paragraph (1) an agency head shall
give priority to achieving greater use of recovered material in cement or
concrete projects for which recovered materials historically have not been
used or have been used only minimally.
(c) FULL IMPLEMENTATION STUDY-
(1) IN GENERAL- The Administrator and the Secretary of
Transportation, in cooperation with the Secretary of Energy, shall conduct a
study to determine the extent to which current procurement requirements,
when fully implemented in accordance with subsection (b), may realize energy
savings and greenhouse gas emission reduction benefits attainable with
substitution of recovered material in cement used in cement or concrete
projects.
(2) MATTERS TO BE ADDRESSED- The study shall--
(A) quantify the extent to which recovered materials are being
substituted for Portland cement, particularly as a result of current
procurement requirements, and the energy savings and greenhouse gas
emission reduction benefits associated with that
substitution;
(B) identify all barriers in procurement requirements to fuller
realization of energy savings and greenhouse gas emission reduction
benefits, including barriers resulting from exceptions from current law;
and
(C)(i) identify potential mechanisms to achieve greater
substitution of recovered material in types of cement or concrete projects
for which recovered materials 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 material in those
cement or concrete projects; and
(iii) identify any potential environmental or economic effects
that may result from greater substitution of recovered material in those
cement or concrete projects.
(3) REPORT- Not later than 30 months after the date of enactment of
this Act, the Secretary shall submit to the Committee on Appropriations and
Committee on Environment and Public Works of the Senate and the Committee on
Appropriations and Committee on Energy and Commerce of the House of
Representatives a report on the study.
(d) ADDITIONAL PROCUREMENT REQUIREMENTS- Within 1 year of the release
of the report in accordance with subsection (c)(3), the Administrator and each
agency head shall take additional actions authorized under the Solid Waste
Disposal Act (42 U.S.C. 6901 et seq.) to establish procurement requirements
and incentives that provide for the use of cement and concrete with increased
substitution of recovered material in the construction and maintenance of
cement or concrete projects, so as to--
(1) realize more fully the energy savings and greenhouse gas
emission reduction benefits associated with increased substitution;
and
(2) eliminate barriers identified under subsection (c).
(e) EFFECT OF SECTION- Nothing in this section affects the
requirements of section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6962)
(including the guidelines and specifications for implementing those
requirements).
Subtitle C--Industrial Efficiency and Consumer
Products
SEC. 921. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY
INTENSITY.
(a) VOLUNTARY AGREEMENTS- The Secretary of Energy shall enter into
voluntary agreements with one or more persons in industrial sectors that
consume significant amounts of primary energy per unit of physical output to
reduce the energy intensity of their production activities.
(b) GOAL- Voluntary agreements under this section shall have a goal of
reducing energy intensity by not less than 2.5 percent each year from 2002
through 2012.
(c) RECOGNITION- The Secretary of Energy, in cooperation with the
Administrator of the Environmental Protection Agency and other appropriate
Federal agencies, shall develop mechanisms to recognize and publicize the
achievements of participants in voluntary agreements under this
section.
(d) DEFINITION- In this section, the term `energy intensity' means the
primary energy consumed per unit of physical output in an industrial
process.
(e) TECHNICAL ASSISTANCE- An entity that enters into an agreement
under this section and continues to make a good faith effort to achieve the
energy efficiency goals specified in the agreement shall be eligible to
receive from the Secretary a grant or technical assistance as appropriate to
assist in the achievement of those goals.
(f) REPORT- Not later than June 30, 2008 and June 30, 2012, the
Secretary shall submit to Congress a report that evaluates the success of the
voluntary agreements, with independent verification of a sample of the energy
savings estimates provided by participating firms.
SEC. 922. AUTHORITY TO SET STANDARDS FOR COMMERCIAL PRODUCTS.
Part B of title III of the Energy Policy and Conservation Act (42
U.S.C. 6291 et seq.) is amended as follows:
(1) In the heading for such part, by inserting `AND COMMERCIAL'
after `CONSUMER'.
(2) In section 321(2), by inserting `or commercial' after
`consumer'.
(3) In paragraphs (4), (5), and (15) of section 321, by striking
`consumer' each place it appears and inserting `covered'.
(4) In section 322(a), by inserting `or commercial' after `consumer'
the first place it appears in the material preceding paragraph
(1).
(5) In section 322(b), by inserting `or commercial' after `consumer'
each place it appears.
(6) In section 322 (b)(1)(B) and (b)(2)(A), by inserting `or
per-business in the case of a commercial product' after `per-household' each
place it appears.
(7) In section 322 (b)(2)(A), by inserting `or businesses in the
case of commercial products' after `households' each place it
appears.
(8) In section 322 (B)(2)(C)--
(A) by striking `term' and inserting `terms'; and
(B) by inserting `and `business' after `household'.
(9) In section 323 (b)(1) (B) by inserting `or commercial' after
`consumer'.
SEC. 923. ADDITIONAL DEFINITIONS.
Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291)
is amended by adding at the end the following:
`(32) The term `battery charger' means a device that charges
batteries for consumer products.
`(33) The term `commercial refrigerator, freezer and
refrigerator-freezer' means a refrigerator, freezer or refrigerator-freezer
that--
`(A) is not a consumer product regulated under this Act;
and
`(B) incorporates most components involved in the
vapor-compression cycle and the refrigerated compartment in a single
package.
`(34) The term `external power supply' means an external power
supply circuit that is used to convert household electric current into
either DC current or lower-voltage AC current to operate a consumer
product.
`(35) The term `illuminated exit sign' means a sign
that--
`(A) is designed to be permanently fixed in place to identify an
exit; and
`(i) an electrically powered integral light source that
illuminates the legend `EXIT' and any directional indicators;
and
`(ii) provides contrast between the legend, any directional
indicators, and the background.
`(36)(A) Except as provided in subsection (B), the term `low-voltage
dry-type transformer' means a transformer that--
`(i) has an input voltage of 600 volts or less;
`(iii) does not use oil as a coolant; and
`(iv) is rated for operation at a frequency of 60
Hertz.
`(B) The term `low-voltage dry-type transformer' does not
include--
`(i) transformers with multiple voltage taps, with the highest
voltage tap equaling at least 20 percent more than the lowest voltage
tap;
`(ii) transformers that are designed to be used in a special
purpose application, such as transformers commonly known as drive
transformers, rectifier transformers, autotransformers, Uninterruptible
Power System transformers, impedance transformers, harmonic transformers,
regulating transformers, sealed and nonventilating transformers, machine
tool transformers, welding transformers, grounding transformers, or
testing transformers; or
`(iii) any transformer not listed in clause (ii) that is excluded
by the Secretary by rule because the transformer is designed for a special
application and the application of standards to the transformer would not
result in significant energy savings.
`(37) The term `standby mode' means the lowest amount of electric
power used by a household appliance when not performing its active
functions, as defined on an individual product basis by the
Secretary.
`(38) The term `torchiere' means a portable electric lamp with a
reflector bowl that directs light upward so as to give indirect
illumination.
`(39) The term `transformer' means a device consisting of two or
more coils of insulated wire that transfers alternating current by
electromagnetic induction from one coil to another to change the original
voltage or current value.
`(40) The term `unit heater' means a self-contained fan-type heater
designed to be installed within the heated space, except that such term does
not include a warm air furnace.
`(41) The term `traffic signal module' means a standard 8-inch
(200mm) or 12-inch (300mm) traffic signal indication, consisting of a light
source, a lens, and all other parts necessary for operation, that
communicates movement messages to drivers through red, amber, and green
colors.'.
SEC. 924. ADDITIONAL TEST PROCEDURES.
(a) EXIT SIGNS- Section 323(b) of the Energy Policy and Conservation
Act (42 U.S.C. 6293) is amended by adding at the end the following:
`(9) Test procedures for illuminated exit signs shall be based on
the test method used under the Energy Star program of the Environmental
Protection Agency for illuminated exit signs, as in effect on the date of
enactment of this paragraph.
`(10) Test procedures for 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). The Secretary may
review and revise this test procedure based on future revisions to such
standard test method.
`(11) Test procedures for traffic signal 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.'.
(b) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- Section 323 of the
Energy Policy and Conservation Act (42 U.S.C. 6293) is further amended by
adding at the end the following:
`(f) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- The Secretary shall
within 24 months after the date of enactment of this subsection prescribe
testing requirements for suspended ceiling fans, refrigerated bottled or
canned beverage vending machines, commercial unit heaters, and commercial
refrigerators, freezers and refrigerator-freezers. Such testing requirements
shall be based on existing test procedures used in industry to the extent
practical and reasonable. In the case of suspended ceiling fans, such test
procedures shall include efficiency at both maximum output and at an output no
more than 50 percent of the maximum output.'.
SEC. 925. ENERGY LABELING.
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER PRODUCT LABELING-
Paragraph (2) of section 324(a) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)(2)) is amended by adding at the end the following:
`(F) Not later than 3 months after the date of enactment of this
subparagraph, the Commission shall initiate a rulemaking to consider the
effectiveness of the current consumer products labeling program in
assisting consumers in making purchasing decisions and improving energy
efficiency and to consider changes to the labeling rules that would
improve the effectiveness of consumer product labels. Such rulemaking
shall be completed within 15 months of the date of enactment of this
subparagraph.'.
(b) RULEMAKING ON LABELING FOR ADDITIONAL PRODUCTS- Section 324(a) of
the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is further amended
by adding at the end the following:
`(5) The Secretary shall within 6 months after the date on which
energy conservation standards are prescribed by the Secretary for covered
products referred to in subsections (u) and (v) of section 325, and within
18 months of enactment of this paragraph for products referred to in
subsections (w) through (y) of section 325, prescribe, by rule, labeling
requirements for such products. Labeling requirements adopted under this
paragraph shall take effect on the same date as the standards set pursuant
to sections 325 (v) through (y).'.
SEC. 926. ENERGY STAR PROGRAM.
The Energy Policy and Conservation Act (42 U.S.C. 6201 and following)
is amended by inserting after section 324 the following:
`ENERGY STAR PROGRAM
`SEC. 324A. There is established at the Department of Energy and the
Environmental Protection Agency a program to identify and promote
energy-efficient products and buildings in order to reduce energy consumption,
improve energy security, and reduce pollution through labeling of products and
buildings that meet the highest energy efficiency standards. Responsibilities
under the program shall be divided between the Department of Energy and the
Environmental Protection Agency consistent with the terms of agreements
between the two agencies. The Administrator and the Secretary shall--
`(1) promote Energy Star compliant technologies as the preferred
technologies in the marketplace for achieving energy efficiency and to
reduce pollution;
`(2) work to enhance public awareness of the Energy Star label,
including special outreach to small businesses;
`(3) preserve the integrity of the Energy Star label; and
`(4) solicit the comments of interested parties in establishing a
new Energy Star product category or in revising a product category, and upon
adoption of a new or revised product category provide an explanation of the
decision that responds to significant public comments.'.
SEC. 927. ENERGY CONSERVATION STANDARDS FOR CENTRAL AIR CONDITIONERS AND
HEAT PUMPS.
Section 325(d)(3) of the Energy Policy and Conservation Act (42 U.S.C.
6295(d)) is amended by adding at the end the following:
`(C) REVISION OF STANDARDS- Not later than 60 days after the date
of enactment of this subparagraph, the Secretary shall amend the standards
established under paragraph (1).'.
SEC. 928. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL CONSUMER AND
COMMERCIAL PRODUCTS.
Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295)
is amended by adding at the end the following:
`(u) STANDBY MODE ELECTRIC ENERGY CONSUMPTION-
`(1) INITIAL RULEMAKING- (A) The Secretary shall, within 18 months
after the date of enactment of this subsection, prescribe by notice and
comment, definitions of standby mode and test procedures for the standby
mode power use of battery chargers and external power supplies. In
establishing these test procedures, the Secretary shall consider, among
other factors, existing test procedures used for measuring energy
consumption in standby mode and assess the current and projected future
market for battery chargers and external power supplies. This assessment
shall include estimates of the significance of potential energy savings from
technical improvements to these products and suggested product classes for
standards. Prior to the end of this time period, the Secretary shall hold a
scoping workshop to discuss and receive comments on plans for developing
energy conservation standards for standby mode energy use for these
products.
`(B) The Secretary shall, within 3 years after the date of enactment
of this subsection, issue a final rule that determines whether energy
conservation standards shall be promulgated for battery chargers and
external power supplies or classes thereof. For each product class, any such
standards shall be set at the lowest level of standby energy use
that--
`(i) meets the criteria of subsections (o), (p), (q), (r), (s) and
(t); and
`(ii) will result in significant overall annual energy savings,
considering both standby mode and other operating modes.
`(2) DESIGNATION OF ADDITIONAL COVERED PRODUCTS- (A) Not later than
180 days after the date of enactment of this subsection, the Secretary shall
publish for public comment and public hearing a notice to determine whether
any noncovered products should be designated as covered products for the
purpose of instituting a rulemaking under this section to determine whether
an energy conservation standard restricting standby mode energy consumption,
should be promulgated; providing that any restriction on standby mode energy
consumption shall be limited to major sources of such
consumption.
`(B) In making the determinations pursuant to subparagraph (A) of
whether to designate new covered products and institute rulemakings, the
Secretary shall, among other relevant factors and in addition to the
criteria in section 322(b), consider--
`(i) standby mode power consumption compared to overall product
energy consumption; and
`(ii) the priority and energy savings potential of standards which
may be promulgated under this subsection compared to other required
rulemakings under this section and the available resources of the
Department to conduct such rulemakings.
`(C) Not later than 1 year after the date of enactment of this
subsection, the Secretary shall issue a determination of any new covered
products for which he intends to institute rulemakings on standby mode
pursuant to this section and he shall state the dates by which he intends to
initiate those rulemakings.
`(3) REVIEW OF STANDBY ENERGY USE IN COVERED PRODUCTS- In
determining pursuant to section 323 whether test procedures and energy
conservation standards pursuant to section 325 should be revised, the
Secretary shall consider for covered products which are major sources of
standby mode energy consumption whether to incorporate standby mode into
such test procedures and energy conservation standards, taking into account,
among other relevant factors, the criteria for non-covered products in
subparagraph (B) of this subsection.
`(4) RULEMAKING FOR STANDBY MODE- (A) Any rulemaking instituted
under this subsection or for covered products under this section which
restricts standby mode power consumption shall be subject to the criteria
and procedures for issuing energy conservation standards set forth in
section 325 and the criteria set forth in paragraph 2(B) of this
subsection.
`(B) No standard can be proposed for new covered products or covered
products in a standby mode unless the Secretary has promulgated applicable
test procedures for each product pursuant to section 323.
`(C) The provisions of section 327 shall apply to new covered
products which are subject to the rulemakings for standby mode after a final
rule has been issued.
`(5) EFFECTIVE DATE- Any standard promulgated under this subsection
shall be applicable to products manufactured or imported 3 years after the
date of promulgation.
`(6) VOLUNTARY PROGRAMS TO REDUCE STANDBY MODE ENERGY USE- The
Secretary and the Administrator shall collaborate and develop programs,
including programs pursuant to section 324A and other voluntary industry
agreements or codes of conduct, which are designed to reduce standby mode
energy use.
`(v) SUSPENDED CEILING FANS, VENDING MACHINES, UNIT HEATERS, AND
COMMERCIAL REFRIGERATORS, FREEZERS AND REFRIGERATOR-FREEZERS- The Secretary
shall within 24 months after the date on which testing requirements are
prescribed by the Secretary pursuant to section 323(f), prescribe, by rule,
energy conservation standards for suspended ceiling fans, refrigerated bottled
or canned beverage vending machines, unit heaters, and commercial
refrigerators, freezers and refrigerator-freezers. In establishing standards
under this subsection, the Secretary shall use the criteria and procedures
contained in subsections (l) and (m). Any standard prescribed under this
subsection shall apply to products manufactured 3 years after the date of
publication of a final rule establishing such standard.
`(w) ILLUMINATED EXIT SIGNS- Illuminated exit signs manufactured on or
after January 1, 2005 shall meet the Energy Star Program performance
requirements for illuminated exit signs prescribed by the Environmental
Protection Agency as in effect on the date of enactment of this
subsection.
`(x) TORCHIERES- Torchieres manufactured on or after January 1,
2005--
`(1) shall consume not more than 190 watts of power; and
`(2) shall not be capable of operating with lamps that total more
than 190 watts.
`(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS- The efficiency of low voltage
dry-type transformers manufactured on or after January 1, 2005 shall be the
Class I Efficiency Levels for low voltage dry-type transformers specified in
Table 4-2 of the `Guide for Determining Energy Efficiency for Distribution
Transformers' published by the National Electrical Manufacturers Association
(NEMA TP-1-1996).
`(z) TRAFFIC SIGNAL MODULES- Traffic signal modules manufactured on or
after January 1, 2006 shall meet the performance requirements used under the
Energy Star program of the Environmental Protection Agency for traffic
signals, as in effect on the date of enactment of this paragraph, and shall be
installed with compatible, electrically-connected signal control interface
devices and conflict monitoring systems.'.
SEC. 929. CONSUMER EDUCATION ON ENERGY EFFICIENCY BENEFITS OF AIR
CONDITIONING, HEATING, AND VENTILATION MAINTENANCE.
Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 6307)
is amended by adding at the end the following:
`(c) HVAC MAINTENANCE- (1) For the purpose of ensuring that installed
air conditioning and heating systems operate at their maximum rated efficiency
levels, the Secretary shall, within 180 days of the date of enactment of this
subsection, carry out a program to educate homeowners and small business
owners concerning the energy savings resulting from properly conducted
maintenance of air conditioning, heating, and ventilating systems.
`(2) The Secretary may carry out the program in cooperation with
industry trade associations, industry members, and energy efficiency
organizations.
`(d) SMALL BUSINESS EDUCATION AND ASSISTANCE- The Administrator of the
Small Business Administration, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency, shall develop
and coordinate a Government-wide program, building on the existing Energy Star
for Small Business Program, to assist small business to become more energy
efficient, understand the cost savings obtainable through efficiencies, and
identify financing options for energy efficiency upgrades. The Secretary and
the Administrator shall make the program information available directly to
small businesses and through other Federal agencies, including the Federal
Emergency Management Agency, and the Department of Agriculture.'.
SEC. 930. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall contract with the National Academy of
Sciences for a study, to be completed within 1 year of enactment of this Act,
to examine whether the goals of energy efficiency standards are best served by
measurement of energy consumed, and efficiency improvements, at the actual
site of energy consumption, or through the full fuel cycle, beginning at the
source of energy production. The Secretary shall submit the report to the
Congress.
Subtitle D--Housing Efficiency
SEC. 931. CAPACITY BUILDING FOR ENERGY EFFICIENT, AFFORDABLE
HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816
note) is amended--
(1) in paragraph (1), by inserting before the semicolon at the end
the following: `, including capabilities regarding the provision of energy
efficient, affordable housing and residential energy conservation measures';
and
(2) in paragraph (2), by inserting before the semicolon the
following: `, including such activities relating to the provision of energy
efficient, affordable housing and residential energy conservation measures
that benefit low-income families'.
SEC. 932. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION
AND EFFICIENCY ACTIVITIES.
Section 105(a)(8) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)(8)) is amended--
(1) by inserting `or efficiency' after `energy
conservation';
(2) by striking `, and except that' and inserting `; except that';
and
(3) by inserting before the period at the end the following: `; and
except that each percentage limitation under this paragraph on the amount of
assistance provided under this title that may be used for the provision of
public services is hereby increased by 10 percent, but such percentage
increase may be used only for the provision of public services concerning
energy conservation or efficiency'.
SEC. 933. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT
HOUSING.
(a) SINGLE FAMILY HOUSING MORTGAGE INSURANCE- Section 203(b)(2) of the
National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the first
undesignated paragraph beginning after subparagraph (B)(iii) (relating to
solar energy systems)--
(1) by inserting `or paragraph (10)'; and
(2) by striking `20 percent' and inserting `30 percent'.
(b) MULTIFAMILY HOUSING MORTGAGE INSURANCE- Section 207(c) of the
National Housing Act (12 U.S.C. 1713(c)) is amended, in the second
undesignated paragraph beginning after paragraph (3) (relating to solar energy
systems and residential energy conservation measures), by striking `20
percent' and inserting `30 percent'.
(c) COOPERATIVE HOUSING MORTGAGE INSURANCE- Section 213(p) of the
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking `20 per
centum' and inserting `30 percent'.
(d) REHABILITATION AND NEIGHBORHOOD CONSERVATION HOUSING MORTGAGE
INSURANCE- Section 220(d)(3)(B)(iii) of the National Housing Act (12 U.S.C.
1715k(d)(3)(B)(iii)) is amended by striking `20 per centum' and inserting `30
percent'.
(e) LOW-INCOME MULTIFAMILY HOUSING MORTGAGE INSURANCE- Section 221(k)
of the National Housing Act (12 U.S.C. 1715l(k)) is amended by striking `20
per centum' and inserting `30 percent'.
(f) ELDERLY HOUSING MORTGAGE INSURANCE- The proviso at the end of
section 213(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2)) is
amended by striking `20 per centum' and inserting `30 percent'.
(g) CONDOMINIUM HOUSING MORTGAGE INSURANCE- Section 234(j) of the
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking `20 per
centum' and inserting `30 percent'.
SEC. 934. PUBLIC HOUSING CAPITAL FUND.
Section 9(d)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437g(d)(1)) is amended--
(1) in subparagraph (I), by striking `and' at the end;
(2) in subparagraph (K), by striking the period at the end and
inserting `; and'; and
(3) by adding at the end the following new subparagraph:
`(L) improvement of energy and water-use efficiency by installing
fixtures and fittings that conform to the American Society of Mechanical
Engineers/American National Standards Institute standards A112.19.2-1998
and A112.18.1-2000, or any revision thereto, applicable at the time of
installation, and by increasing energy efficiency and water conservation
by such other means as the Secretary determines are
appropriate.'.
SEC. 935. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED
HOUSING.
Section 251(b)(1) of the National Energy Conservation Policy Act (42
U.S.C. 8231(1)) is amended--
(1) by striking `financed with loans' and inserting
`assisted';
(2) by inserting after `1959,' the following: `which are eligible
multifamily housing projects (as such term is defined in section 512 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) and are subject to a mortgage restructuring and rental
assistance sufficiency plans under such Act,'; and
(3) by inserting after the period at the end of the first sentence
the following new sentence: `Such improvements may also include the
installation of energy and water conserving fixtures and fittings that
conform to the American Society of Mechanical Engineers/American National
Standards Institute standards A112.19.2-1998 and A112.18.1-2000, or any
revision thereto, applicable at the time of installation.'.
SEC. 936. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American Free Trade
Agreement Implementation Act (22 U.S.C. 290m-290m-3) is amended by adding at
the end the following:
`SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
`Consistent with the focus of the Bank's Charter on environmental
infrastructure projects, the Board members representing the United States
should use their voice and vote to encourage the Bank to finance projects
related to clean and efficient energy, including energy conservation, that
prevent, control, or reduce environmental pollutants or
contaminants.'.
SEC. 937. CAPITAL FUND.
Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g),
as amended by section 934, is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (L), by striking the period at the end and
inserting `; and';
(B) by redesignating subparagraph (L) as subparagraph (K);
and
(C) by adding at the end the following:
`(L) integrated utility management and capital planning to
maximize energy conservation and efficiency measures.';
and
(2) in subsection (e)(2)(C)--
(A) by striking `The' and inserting the following:
`(i) IN GENERAL- The'; and
(B) by adding at the end the following:
`(ii) THIRD PARTY CONTRACTS- Contracts described in clause (i)
may include contracts for equipment conversions to less costly utility
sources, projects with resident paid utilities, adjustments to frozen
base year consumption, including systems repaired to meet applicable
building and safety codes and adjustments for occupancy rates increased
by rehabilitation.
`(iii) TERM OF CONTRACT- The total term of a contract described
in clause (i) shall be for not more than 20 years to allow longer
payback periods for retrofits, including but not limited to windows,
heating system replacements, wall insulation, site-based generations,
and advanced energy savings technologies, including renewable energy
generation.'.
SEC. 938. ENERGY-EFFICIENT APPLIANCES.
A public housing agency shall purchase energy-efficient appliances
that are Energy Star products as defined in section 552 of the National Energy
Policy and Conservation Act (as amended by this Act) when the purchase of
energy-efficient appliances is cost-effective to the public housing
agency.
SEC. 939. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12709) is amended--
(i) by striking `the date of the enactment of the Energy Policy
Act of 1992' and inserting `September 30, 2002';
(ii) in subparagraph (A), by striking `and' at the
end;
(iii) in subparagraph (B), by striking the period at the end and
inserting a semi-colon; and
(iv) by adding at the end the following:
`(C) rehabilitation and new construction of public and assisted
housing funded by HOPE VI revitalization grants, established under section
24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), where such
standards are determined to be cost effective by the Secretary of Housing
and Urban Development; and
(B) in paragraph (2), by striking `Council of American' and all
that follows through `life-cycle cost basis' and inserting `2000
International Energy Conservation Code';
(A) by striking `the date of the enactment of the Energy Policy
Act of 1992' and inserting `September 30, 2002'; and
(B) by striking `CABO' and all that follows through `1989' and
inserting `the 2000 International Energy Conservation Code';
and
(A) in the heading, by striking `MODEL ENERGY CODE' and inserting
`THE INTERNATIONAL ENERGY CONSERVATION CODE'; and
(B) by striking `CABO' and all that follows through `1989' and
inserting `the 2000 International Energy Conservation Code'.
SEC. 940. ENERGY STRATEGY FOR HUD.
(a) IN GENERAL- The Secretary of Housing and Urban Development shall
develop and implement an integrated strategy to reduce utility expenses
through cost-effective energy conservation and efficiency measures, design and
construction in public and assisted housing.
(b) ENERGY MANAGEMENT OFFICE- The Secretary of Housing and Urban
Development shall create an office at the Department of Housing and Urban
Development for utility management, energy efficiency, and conservation, with
responsibility for implementing the strategy developed under this section,
including development of a centralized database that monitors public housing
energy usage, and development of energy reduction goals and incentives for
public housing agencies. The Secretary shall submit an annual report to
Congress on the strategy.
Subtitle E--Rural and Remote Communities
SEC. 941. SHORT TITLE.
This subtitle may be cited as the `Rural and Remote Community Fairness
Act'.
SEC. 942. FINDINGS AND PURPOSE.
(a) FINDINGS- The Congress finds that--
(1) a modern infrastructure, including energy-efficient housing,
electricity, telecommunications, bulk fuel, wastewater and potable water
service, is a necessary ingredient of a modern society and development of a
prosperous economy;
(2) the Nation's rural and remote communities face critical social,
economic and environmental problems, arising in significant measure from the
high cost of infrastructure development in sparsely populated and remote
areas, that are not adequately addressed by existing Federal assistance
programs;
(3) in the past, Federal assistance has been instrumental in
establishing electric and other utility service in many developing regions
of the Nation, and that Federal assistance continues to be appropriate to
ensure that electric and other utility systems in rural areas conform with
modern standards of safety, reliability, efficiency and environmental
protection; and
(4) the future welfare of the Nation and the well-being of its
citizens depend on the establishment and maintenance of viable rural and
remote communities as social, economic and political entities.
(b) PURPOSE- The purpose of this subtitle is the development and
maintenance of viable rural and remote communities through the provision of
efficient housing, and reasonably priced and environmentally sound energy,
water, wastewater, and bulk fuel, telecommunications and utility services to
those communities that do not have those services or who currently bear costs
of those services that are significantly above the national average.
SEC. 943. DEFINITIONS.
As used in this subtitle:
(1) The term `unit of general local government' means any city,
county, town, township, parish, village, borough (organized or unorganized)
or other general purpose political subdivision of a State, Guam, the
Commonwealth of the Northern Mariana Islands, Puerto Rico, the Republic of
the Marshall Islands, the Federated States of Micronesia, the Republic of
Palau, the Virgin Islands, and American Samoa, a combination of such
political subdivisions that is recognized by the Secretary; and the District
of Columbia; or any other appropriate organization of citizens of a rural
and remote community that the Secretary may identify.
(2) The term `population' means total resident population based on
data compiled by the United States Bureau of the Census and referable to the
same point or period in time.
(3) The term `Native American group' means any Indian tribe, band,
group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any
Alaskan Native village, of the United States, which is considered an
eligible recipient under the Indian Self-Determination and Education
Assistance Act (Public Law 93-638) or was considered an eligible recipient
under chapter 67 of title 31, United States Code, prior to the repeal of
such chapter.
(4) The term `Secretary' means the Secretary of Housing and Urban
Development, the Secretary of Agriculture, the Secretary of the Interior or
the Secretary of Energy, as appropriate.
(5) The term `rural and remote community' means a unit of local
general government or Native American group which is served by an electric
utility that has 10,000 or less customers with an average retail cost per
kilowatt hour of electricity that is equal to or greater than 150 percent of
the average retail cost per kilowatt hour of electricity for all consumers
in the United States, as determined by data provided by the Energy
Information Administration of the Department of Energy.
(6) The term `alternative energy sources' include nontraditional
means of providing electrical energy, including, but not limited to, wind,
solar, biomass, municipal solid waste, hydroelectric, geothermal and tidal
power.
(7) The term `average retail cost per kilowatt hour of electricity'
has the same meaning as `average revenue per kilowatt hour of electricity'
as defined by the Energy Information Administration of the Department of
Energy.
SEC. 944. AUTHORIZATION OF APPROPRIATIONS.
The Secretary is authorized to make grants to rural and remote
communities to carry out activities in accordance with the provisions of this
subtitle. For purposes of assistance under section 947, there are authorized
to be appropriated $100,000,000 for each of fiscal years 2003 through
2009.
SEC. 945. STATEMENT OF ACTIVITIES AND REVIEW.
(a) STATEMENT OF OBJECTIVES AND PROJECTED USE- Prior to the receipt in
any fiscal year of a grant under section 947 by any rural and remote
community, the grantee shall have prepared and submitted to the Secretary of
the agency providing funding a final statement of rural and remote community
development objectives and projected use of funds.
(b) PUBLIC NOTICE- In order to permit public examination and appraisal
of such statements, to enhance the public accountability of grantees, and to
facilitate coordination of activities with different levels of government, the
grantee shall in a timely manner--
(1) furnish citizens information concerning the amount of funds
available for rural and remote community development activities and the
range of activities that may be undertaken;
(2) publish a proposed statement in such manner to afford affected
citizens an opportunity to examine its content and to submit comments on the
proposed statement and on the community development performance of the
grantee;
(3) provide citizens with reasonable access to records regarding the
past use of funds received under section 947 by the grantee; and
(4) provide citizens with reasonable notice of, and opportunity to
comment on, any substantial change proposed to be made in the use of funds
received under section 947 from one eligible activity to another.
The final statement shall be made available to the public, and a copy
shall be furnished to the appropriate Secretary. Any final statement of
activities may be modified or amended from time to time by the grantee in
accordance with the same. Procedures required in this paragraph are for the
preparation and submission of such statement.
(c) PERFORMANCE AND EVALUATION REPORT- Each grantee shall submit to
the appropriate Secretary, at a time determined by the Secretary, a
performance and evaluation report, concerning the use of funds made available
under section 947, together with an assessment by the grantee of the
relationship of such use to the objectives identified in the grantee's
statement under subsection (a) and to the requirements of subsection (b). The
grantee's report shall indicate its programmatic accomplishments, the nature
of and reasons for any changes in the grantee's program objectives, and
indications of how the grantee would change its programs as a result of its
experiences.
(1) IN GENERAL- Any rural and remote community may retain any
program income that is realized from any grant made by the Secretary under
section 947 if--
(A) such income was realized after the initial disbursement of the
funds received by such unit of general local government under such
section; and
(B) such unit of general local government has agreed that it will
utilize the program income for eligible rural and remote community
development activities in accordance with the provisions of this
title.
(2) EXCEPTION- The Secretary may, by regulation, exclude from
consideration as program income any amounts determined to be so small that
compliance with the subsection creates an unreasonable administrative burden
on the rural and remote community.
SEC. 946. ELIGIBLE ACTIVITIES.
(a) ACTIVITIES INCLUDED- Eligible activities assisted under this
subtitle may include only--
(1) weatherization and other cost-effective energy-related repairs
of homes and other buildings;
(2) the acquisition, construction, repair, reconstruction, or
installation of reliable and cost-efficient facilities for the generation,
transmission or distribution of electricity, and telecommunications, for
consumption in a rural and remote community or communities;
(3) the acquisition, construction, repair, reconstruction,
remediation or installation of facilities for the safe storage and efficient
management of bulk fuel by rural and remote communities, and facilities for
the distribution of such fuel to consumers in a rural or remote
community;
(4) facilities and training to reduce costs of maintaining and
operating generation, distribution or transmission systems to a rural and
remote community or communities;
(5) the institution of professional management and maintenance
services for electricity generation, transmission or distribution to a rural
and remote community or communities;
(6) the investigation of the feasibility of alternate energy sources
for a rural and remote community or communities;
(7) acquisition, construction, repair, reconstruction, operation,
maintenance, or installation of facilities for water or wastewater
service;
(8) the acquisition or disposition of real property (including air
rights, water rights, and other interests therein) for eligible rural and
remote community development activities; and
(9) activities necessary to develop and implement a comprehensive
rural and remote development plan, including payment of reasonable
administrative costs related to planning and execution of rural and remote
community development activities.
(b) ACTIVITIES UNDERTAKEN THROUGH ELECTRIC UTILITIES- Eligible
activities may be undertaken either directly by the rural and remote
community, or by the rural and remote community through local electric
utilities.
SEC. 947. ALLOCATION AND DISTRIBUTION OF FUNDS.
For each fiscal year, of the amount approved in an appropriation Act
under section 903 for grants in any year, the Secretary shall distribute to
each rural and remote community which has filed a final statement of rural and
remote community development objectives and projected use of funds under
section 945, an amount which shall be allocated among the rural and remote
communities that filed a final statement of rural and remote community
development objectives and projected use of funds under section 945
proportionate to the percentage that the average retail price per kilowatt
hour of electricity for all classes of consumers in the rural and remote
community exceeds the national average retail price per kilowatt hour for
electricity for all consumers in the United States, as determined by data
provided by the Department of Energy's Energy Information Administration. In
allocating funds under this section, the Secretary shall give special
consideration to those rural and remote communities that increase economies of
scale through consolidation of services, affiliation and regionalization of
eligible activities under this title.
SEC. 948. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.
Section 313 of the Rural Electrification Act of 1936 (7 U.S.C. 940c)
is amended by adding after subsection (b) the following:
`(c) RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS- The
Secretary of Agriculture, in consultation with the Secretary of Energy and the
Secretary of the Interior, may provide grants under this Act for the purpose
of increasing energy efficiency, siting or upgrading transmission and
distribution lines, or providing or modernizing electric facilities
to--
`(1) a unit of local government of a State or territory;
or
`(2) an Indian tribe or Tribal College or University as defined in
section 316(b)(3) of the Higher Education Act (20 U.S.C.
1059c(b)(3)).
`(d) GRANT CRITERIA- The Secretary shall make grants based on a
determination of cost-effectiveness and most effective use of the funds to
achieve the stated purposes of this section.
`(e) PREFERENCE- In making grants under this section, the Secretary
shall give a preference to renewable energy facilities.
`(f) DEFINITION- For purposes of this section, the term `Indian tribe'
means any Indian tribe, band, nation, or other organized group or community,
including any Alaska Native village or regional or village corporation as
defined in or established pursuant to the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.), which is recognized as eligible for the special
programs and services provided by the United States to Indians because of
their status as Indians.
`(e) AUTHORIZATION- For the purpose of carrying out subsection (c),
there are authorized to be appropriated to the Secretary $20,000,000 for each
of the 7 fiscal years following the date of enactment of this
subsection.'.
SEC. 949. ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.
There is hereby authorized to be appropriated $5,000,000 for each of
fiscal years 2003 through 2009 to the Denali Commission established by the
Denali Commission Act of 1998 (42 U.S.C. 3121 note) for the purposes of
funding the power cost equalization program.
SEC. 950. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.
(1) FINDINGS- Congress finds that--
(A) a modern infrastructure, including affordable housing,
wastewater and water service, and advanced technology capabilities is a
necessary ingredient of a modern society and development of a prosperous
economy with minimal environmental impacts;
(B) the Nation's rural areas face critical social, economic, and
environmental problems, arising in significant measure from the growing
cost of infrastructure development in rural areas that suffer from low per
capita income and high rates of outmigration and are not adequately
addressed by existing Federal assistance programs; and
(C) the future welfare of the Nation and the well-being of its
citizens depend on the establishment and maintenance of viable rural areas
as social, economic, and political entities.
(2) PURPOSE- The purpose of this section is to provide for the
development and maintenance of viable rural areas through the provision of
affordable housing and community development assistance to eligible units of
general local government and eligible Native American groups in rural areas
with excessively high rates of outmigration and low per capita income
levels.
(b) DEFINITIONS- In this section:
(1) ELIGIBLE UNIT OF GENERAL LOCAL GOVERNMENT- The term `eligible
unit of general local government' means a unit of general local government
that is the governing body of a rural recovery area.
(2) ELIGIBLE INDIAN TRIBE- The term `eligible Indian tribe' means
the governing body of an Indian tribe that is located in a rural recovery
area.
(3) GRANTEE- The term `grantee' means an eligible unit of general
local government or eligible Indian tribe that receives a grant under this
section.
(4) NATIVE AMERICAN GROUP- The term `Native American group' means
any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts,
and Eskimos, and any Alaskan Native village, of the United States, which is
considered an eligible recipient under the Indian Self-Determination and
Education Assistance Act (Public Law 93-638) or was considered an eligible
recipient under chapter 67 of title 31, United States Code, prior to the
repeal of such chapter.
(5) RURAL RECOVERY AREA- The term `rural recovery area' means any
geographic area represented by a unit of general local government or a
Native American group--
(A) the borders of which are not adjacent to a metropolitan
area;
(i) the population outmigration level equals or exceeds 1
percent over the most recent 5 year period, as determined by the
Secretary of Housing and Urban Development; and
(ii) the per capita income is less than that of the national
nonmetropolitan average; and
(C) that does not include a city with a population of more than
15,000.
(6) UNIT OF GENERAL LOCAL GOVERNMENT-
(A) IN GENERAL- The term `unit of general local government' means
any city, county, town, township, parish, village, borough (organized or
unorganized), or other general purpose political subdivision of a State;
Guam, the Commonwealth of the Northern Mariana Islands, the Virgin
Islands, Puerto Rico, and American Samoa, or a general purpose political
subdivision thereof; a combination of such political subdivisions that,
except as provided in section 106(d)(4), is recognized by the Secretary;
and the District of Columbia.
(B) OTHER ENTITIES INCLUDED- The term also includes a State or a
local public body or agency, community association, or other entity, that
is approved by the Secretary for the purpose of providing public
facilities or services to a new community.
(7) SECRETARY- The term `Secretary' means the Secretary of Housing
and Urban Development, the Secretary of Agriculture, the Secretary of the
Interior or the Secretary of Energy, as appropriate.
(c) GRANT AUTHORITY- The Secretary may make grants in accordance with
this section to eligible units of general local government, Native American
groups and eligible Indian tribes that meet the requirements of subsection (d)
to carry out eligible activities described in subsection (f).
(d) ELIGIBILITY REQUIREMENTS-
(1) STATEMENT OF RURAL DEVELOPMENT OBJECTIVES- In order to receive a
grant under this section for a fiscal year, an eligible unit of general
local government, Native American group or eligible Indian
tribe--
(i) publish a proposed statement of rural development objectives
and a description of the proposed eligible activities described in
subsection (f) for which the grant will be used; and
(ii) afford residents of the rural recovery area served by the
eligible unit of general local government, Native American groups or
eligible Indian tribe with an opportunity to examine the contents of the
proposed statement and the proposed eligible activities published under
clause (i), and to submit comments to the eligible unit of general local
government, Native American group or eligible Indian tribe, as
applicable, on the proposed statement and the proposed eligible
activities, and the overall community development performance of the
eligible unit of general local government, Native American groups or
eligible Indian tribe, as applicable; and
(B) based on any comments received under subparagraph (A)(ii),
prepare and submit to the Secretary--
(i) a final statement of rural development
objectives;
(ii) a description of the eligible activities described in
subsection (f) for which a grant received under this section will be
used; and
(iii) a certification that the eligible unit of general local
government, Native American groups or eligible Indian tribe, as
applicable, will comply with the requirements of paragraph
(2).
(2) PUBLIC NOTICE AND COMMENT- In order to enhance public
accountability and facilitate the coordination of activities among different
levels of government, an eligible unit of general local government, Native
American groups or eligible Indian tribe that receives a grant under this
section shall, as soon as practicable after such receipt, provide the
residents of the rural recovery area served by the eligible unit of general
local government, Native American groups or eligible Indian tribe, as
applicable, with--
(A) a copy of the final statement submitted under paragraph
(1)(B);
(B) information concerning the amount made available under this
section and the eligible activities to be undertaken with that
amount;
(C) reasonable access to records regarding the use of any amounts
received by the eligible unit of general local government, Native American
groups or eligible Indian tribe under this section in any preceding fiscal
year; and
(D) reasonable notice of, and opportunity to comment on, any
substantial change proposed to be made in the use of amounts received
under this section from one eligible activity to another.
(e) DISTRIBUTION OF GRANTS-
(1) IN GENERAL- In each fiscal year, the Secretary shall distribute
to each eligible unit of general local government, Native American groups
and eligible Indian tribe that meets the requirements of subsection (d)(1) a
grant in an amount described in paragraph (2).
(2) AMOUNT- Of the total amount made available to carry out this
section in each fiscal year, the Secretary shall distribute to each grantee
the amount equal to the greater of--
(A) the pro rata share of the grantee, as determined by the
Secretary, based on the combined annual population outmigration level (as
determined by the Secretary of Housing and Urban Development) and the per
capita income for the rural recovery area served by the grantee;
or
(f) ELIGIBLE ACTIVITIES- Each grantee shall use amounts received under
this section for one or more of the following eligible activities, which may
be undertaken either directly by the grantee, or by any local economic
development corporation, regional planning district, nonprofit community
development corporation, or statewide development organization authorized by
the grantee--
(1) the acquisition, construction, repair, reconstruction,
operation, maintenance, or installation of facilities for water and
wastewater service or any other infrastructure needs determined to be
critical to the further development or improvement of a designated
industrial park;
(2) the acquisition or disposition of real property (including air
rights, water rights, and other interests therein) for rural community
development activities;
(3) the development of telecommunications infrastructure within a
designated industrial park that encourages high technology business
development in rural areas;
(4) activities necessary to develop and implement a comprehensive
rural development plan, including payment of reasonable administrative costs
related to planning and execution of rural development activities;
or
(5) affordable housing initiatives.
(g) PERFORMANCE AND EVALUATION REPORT-
(1) IN GENERAL- Each grantee shall annually submit to the
appropriate Secretary a performance and evaluation report, concerning the
use of amounts received under this section.
(2) CONTENTS- Each report submitted under paragraph (1) shall
include a description of--
(A) the eligible activities carried out by the grantee with
amounts received under this section, and the degree to which the grantee
has achieved the rural development objectives included in the final
statement submitted under subsection (d)(1);
(B) the nature of and reasons for any change in the rural
development objectives or the eligible activities of the grantee after
submission of the final statement under subsection (d)(1);
and
(C) any manner in which the grantee would change the rural
development objectives of the grantee as a result of the experience of the
grantee in administering amounts received under this
section.
(h) RETENTION OF INCOME- A grantee may retain any income that is
realized from the grant, if--
(1) the income was realized after the initial disbursement of
amounts to the grantee under this section; and
(A) grantee agrees to utilize the income for one or more eligible
activities; or
(B) amount of the income is determined by the Secretary to be so
small that compliance with subparagraph (A) would create an unreasonable
administrative burden on the grantee.
(i) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $100,000,000 for each of fiscal years
2003 through 2009.
DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE
POLICY
TITLE X--NATIONAL CLIMATE CHANGE POLICY
Subtitle A--Sense of Congress
SEC. 1001. SENSE OF CONGRESS ON CLIMATE CHANGE.
(a) FINDINGS- The Congress makes the following findings:
(1) Evidence continues to build that increases in atmospheric
concentrations of man-made greenhouse gases are contributing to global
climate change.
(2) The Intergovernmental Panel on Climate Change (IPCC) has
concluded that `there is new and stronger evidence that most of the warming
observed over the last 50 years is attributable to human activities' and
that the Earth's average temperature can be expected to rise between 2.5 and
10.4 degrees Fahrenheit in this century.
(3) The National Academy of Sciences confirmed the findings of the
IPCC, stating that `the IPCC's conclusion that most of the observed warming
of the last 50 years is likely to have been due to the increase of
greenhouse gas concentrations accurately reflects the current thinking of
the scientific community on this issue' and that `there is general agreement
that the observed warming is real and particularly strong within the past
twenty years'. The National Academy of Sciences also noted that `because
there is considerable uncertainty in current understanding of how the
climate system varies naturally and reacts to emissions of greenhouse gases
and aerosols, current estimates of the magnitude of future warming should be
regarded as tentative and subject to future adjustments upward or
downward'.
(4) The IPCC has stated that in the last 40 years, the global
average sea level has risen, ocean heat content has increased, and snow
cover and ice extent have decreased, which threatens to inundate low-lying
island nations and coastal regions throughout the world.
(5) In October 2000, a United States Government report found that
global climate change may harm the United States by altering crop yields,
accelerating sea-level rise, and increasing the spread of tropical
infectious diseases.
(6) In 1992, the United States ratified the United Nations Framework
Convention on Climate Change (UNFCCC), the ultimate objective of which is
the `stabilization of greenhouse gas concentrations in the atmosphere at a
level that would prevent dangerous anthropogenic interference with the
climate system. Such a level should be achieved within a time-frame
sufficient to allow ecosystems to adapt naturally to climate change, to
ensure that food production is not threatened and to enable economic
development to proceed in a sustainable manner'.
(7) The UNFCCC stated in part that the Parties to the Convention are
to implement policies `with the aim of returning . . . to their 1990 levels
anthropogenic emissions of carbon dioxide and other greenhouse gases' under
the principle that `policies and measures . . . should be appropriate for
the specific conditions of each Party and should be integrated with national
development programmes, taking into account that economic development is
essential for adopting measures to address climate change'.
(8) There is a shared international responsibility to address this
problem, as industrial nations are the largest historic and current emitters
of greenhouse gases and developing nations' emissions will significantly
increase in the future.
(9) The UNFCCC further stated that `developed country Parties should
take the lead in combating climate change and the adverse effects thereof',
as these nations are the largest historic and current emitters of greenhouse
gases. The UNFCCC also stated that `steps required to understand and address
climate change will be environmentally, socially and economically most
effective if they are based on relevant scientific, technical and economic
considerations and continually re-evaluated in the light of new findings in
these areas'.
(10) Senate Resolution 98 of the One Hundred Fifth Congress, which
expressed that developing nations must also be included in any future,
binding climate change treaty and such a treaty must not result in serious
harm to the United States economy, should not cause the United States to
abandon its shared responsibility to help reduce the risks of climate change
and its impacts. Future international efforts in this regard should focus on
recognizing the equitable responsibilities for addressing climate change by
all nations, including commitments by the largest developing country
emitters in a future, binding climate change treaty.
(11) It is the position of the United States that it will not
interfere with the plans of any nation that chooses to ratify and implement
the Kyoto Protocol to the UNFCCC.
(12) American businesses need to know how governments worldwide will
address the risks of climate change.
(13) The United States benefits from investments in the research,
development and deployment of a range of clean energy and efficiency
technologies that can reduce the risks of climate change and its impacts and
that can make the United States economy more productive, bolster energy
security, create jobs, and protect the environment.
(b) SENSE OF CONGRESS- It is the sense of the United States Congress
that the United States should demonstrate international leadership and
responsibility in reducing the health, environmental, and economic risks posed
by climate change by--
(1) taking responsible action to ensure significant and meaningful
reductions in emissions of greenhouse gases from all sectors;
(2) creating flexible international and domestic mechanisms,
including joint implementation, technology deployment, tradable credits for
emissions reductions and carbon sequestration projects that will reduce,
avoid, and sequester greenhouse gas emissions; and
(3) participating in international negotiations, including putting
forth a proposal to the Conference of the Parties, with the objective of
securing United States participation in a future binding climate change
Treaty in a manner that is consistent with the environmental objectives of
the UNFCCC, that protects the economic interests of the United States, and
recognizes the shared international responsibility for addressing climate
change, including developing country participation.
Subtitle B--Climate Change Strategy
SEC. 1011. SHORT TITLE.
This subtitle may be cited as the `Climate Change Strategy and
Technology Innovation Act of 2002'.
SEC. 1012. DEFINITIONS.
(1) CLIMATE-FRIENDLY TECHNOLOGY- The term `climate-friendly
technology' means any energy supply or end-use technology that, over the
life of the technology and compared to similar technology in commercial use
as of the date of enactment of this Act--
(A) results in reduced emissions of greenhouse
gases;
(B) may substantially lower emissions of other pollutants;
and
(C) may generate substantially smaller or less hazardous
quantities of solid or liquid waste.
(2) DEPARTMENT- The term `Department' means the Department of
Energy.
(3) DEPARTMENT OFFICE- The term `Department Office' means the Office
of Climate Change Technology of the Department established by section
1015(a).
(4) FEDERAL AGENCY- The term `Federal agency' has the meaning given
the term `agency' in section 551 of title 5, United States Code.
(5) GREENHOUSE GAS- The term `greenhouse gas' means--
(A) an anthropogenic gaseous constituent of the atmosphere
(including carbon dioxide, methane, nitrous oxide, chlorofluorocarbons,
hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and
tropospheric ozone) that absorbs and re-emits infrared radiation and
influences climate; and
(B) an anthropogenic aerosol (such as black soot) that absorbs
solar radiation and influences climate.
(6) INTERAGENCY TASK FORCE- The term `Interagency Task Force' means
the Interagency Task Force established under section 1014(e).
(7) KEY ELEMENT- The term `key element', with respect to the
Strategy, means--
(A) definition of interim emission mitigation levels, that,
coupled with specific mitigation approaches and after taking into account
actions by other nations (if any), would result in stabilization of
greenhouse gas concentrations;
(B) technology development, including--
(i) a national commitment to double energy research and
development by the United States public and private sectors;
and
(ii) in carrying out such research and development, a national
commitment to provide a high degree of emphasis on bold, breakthrough
technologies that will make possible a profound transformation of the
energy, transportation, industrial, agricultural, and building sectors
of the United States;
(C) climate adaptation research that focuses on actions necessary
to adapt to climate change--
(i) that may have already occurred; or
(ii) that may occur under future climate change
scenarios;
(D) climate science research that--
(i) builds on the substantial scientific understanding of
climate change that exists as of the date of enactment of this subtitle;
and
(ii) focuses on reducing the remaining scientific, technical,
and economic uncertainties to aid in the development of sound response
strategies.
(8) LONG-TERM GOAL OF THE STRATEGY- The term `long-term goal of the
Strategy' means the long-term goal in section 1013(a)(1).
(9) MITIGATION- The term `mitigation' means actions that reduce,
avoid, or sequester greenhouse gases.
(10) NATIONAL ACADEMY OF SCIENCES- The term `National Academy of
Sciences' means the National Academy of Sciences, the National Academy of
Engineering, the Institute of Medicine, and the National Research
Council.
(11) QUALIFIED INDIVIDUAL-
(A) IN GENERAL- The term `qualified individual' means an
individual who has demonstrated expertise and leadership skills to draw on
other experts in diverse fields of knowledge that are relevant to
addressing the climate change challenge.
(B) FIELDS OF KNOWLEDGE- The fields of knowledge referred to in
subparagraph (A) are--
(i) the science of climate change and its
impacts;
(ii) energy and environmental economics;
(iii) technology transfer and diffusion;
(iv) the social dimensions of climate change;
(v) climate change adaptation strategies;
(vi) fossil, nuclear, and renewable energy
technology;
(vii) energy efficiency and energy
conservation;
(viii) energy systems integration;
(ix) engineered and terrestrial carbon
sequestration;
(x) transportation, industrial, and building sector
concerns;
(xi) regulatory and market-based mechanisms for addressing
climate change;
(xii) risk and decision analysis;
(xiii) strategic planning; and
(xiv) the international implications of climate change
strategies.
(12) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(13) STABILIZATION OF GREENHOUSE GAS CONCENTRATIONS- The term
`stabilization of greenhouse gas concentrations' means the stabilization of
greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system,
recognizing that such a level should be achieved within a time frame
sufficient to allow ecosystems to adapt naturally to climate change, to
ensure that food production is not threatened and to enable economic
development to proceed in a sustainable manner, as contemplated by the
United Nations Framework Convention on Climate Change, done at New York on
May 9, 1992.
(14) STRATEGY- The term `Strategy' means the National Climate Change
Strategy developed under section 1013.
(15) WHITE HOUSE OFFICE- The term `White House Office' means the
Office of National Climate Change Policy established by section
1014(a).
SEC. 1013. NATIONAL CLIMATE CHANGE STRATEGY.
(a) IN GENERAL- The President, through the director of the White House
Office and in consultation with the Interagency Task Force, shall develop a
National Climate Change Strategy, which shall--
(1) have the long-term goal of stabilization of greenhouse gas
concentrations through actions taken by the United States and other
nations;
(2) recognize that accomplishing the long-term goal of the Strategy
will take from many decades to more than a century, but acknowledging that
significant actions must begin in the near term;
(3) incorporate the four key elements;
(4) be developed on the basis of an examination of a broad range of
emissions levels and dates for achievement of those levels (including those
evaluated by the Intergovernmental Panel on Climate Change and those
consistent with United States treaty commitments) that, after taking into
account actions by other nations, would achieve the long-term goal of the
Strategy;
(5) consider the broad range of activities and actions that can be
taken by United States entities to reduce, avoid, or sequester greenhouse
gas emissions both within the United States and in other nations through the
use of market mechanisms, which may include, but not be limited to,
mitigation activities, terrestrial sequestration, earning offsets through
carbon capture or project-based activities, trading of emissions credits in
domestic and international markets, and the application of the resulting
credits from any of the above within the United States;
(6) minimize any adverse short-term and long-term social, economic,
national security, and environmental impacts, including ensuring that the
strategy is developed in an economically and environmentally sound
manner;
(7) incorporate mitigation approaches leading to the development and
deployment of advanced technologies and practices that will reduce, avoid,
or sequester greenhouse gas emissions;
(8) be consistent with the goals of energy, transportation,
industrial, agricultural, forestry, environmental, economic, and other
relevant policies of the United States;
(A) the diversity of energy sources and
technologies;
(B) supply-side and demand-side solutions; and
(C) national infrastructure, energy distribution, and
transportation systems;
(10) be based on an evaluation of a wide range of approaches for
achieving the long-term goal of the Strategy, including evaluation
of--
(A) a variety of cost-effective Federal and State policies,
programs, standards, and incentives;
(B) policies that integrate and promote innovative, market-based
solutions in the United States and in foreign countries; and
(C) participation in other international institutions, or in the
support of international activities, that are established or conducted to
achieve the long-term goal of the Strategy;
(11) in the final recommendations of the Strategy--
(A) emphasize policies and actions that achieve the long-term goal
of the Strategy; and
(B) provide specific recommendations concerning--
(i) measures determined to be appropriate for short-term
implementation, giving preference to cost-effective and technologically
feasible measures that will--
(I) produce measurable net reductions in United States
emissions, compared to expected trends, that lead toward achievement
of the long-term goal of the Strategy; and
(II) minimize any adverse short-term and long-term economic,
environmental, national security, and social impacts on the United
States;
(ii) the development of technologies that have the potential for
long-term implementation--
(I) giving preference to technologies that have the potential
to reduce significantly the overall cost of achieving the long-term
goal of the Strategy; and
(II) considering a full range of energy sources, energy
conversion and use technologies, and efficiency
options;
(iii) such changes in institutional and technology systems are
necessary to adapt to climate change in the short-term and the
long-term;
(iv) such review, modification, and enhancement of the
scientific, technical, and economic research efforts of the United
States, and improvements to the data resulting from research, as are
appropriate to improve the accuracy of predictions concerning climate
change and the economic and social costs and opportunities relating to
climate change; and
(v) changes that should be made to project and grant evaluation
criteria under other Federal research and development programs so that
those criteria do not inhibit development of climate-friendly
technologies;
(12) recognize that the Strategy is intended to guide the Nation's
effort to address climate change, but it shall not create a legal obligation
on the part of any person or entity other than the duties of the Director of
the White House Office and Interagency Task Force in the development of the
Strategy;
(13) have a scope that considers the totality of United States
public, private, and public-private sector actions that bear on the
long-term goal;
(14) be developed in a manner that provides for meaningful
participation by, and consultation among, Federal, State, tribal, and local
government agencies, nongovernmental organizations, academia, scientific
bodies, industry, the public, and other interested parties in accordance
with subsections (b)(3)(C)(iv)(II) and (e)(3)(B)(ii) of section
1014;
(15) address how the United States should engage State, tribal, and
local governments in developing and carrying out a response to climate
change;
(16) promote, to the maximum extent practicable, public awareness,
outreach, and information-sharing to further the understanding of the full
range of climate change-related issues;
(17) provide a detailed explanation of how the measures recommended
by the Strategy will ensure that they do not result in serious harm to the
economy of the United States;
(18) provide a detailed explanation of how the measures recommended
by the Strategy will achieve its long-term goal;
(19) include any recommendations for legislative and administrative
actions necessary to implement the Strategy;
(20) serve as a framework for climate change actions by all Federal
agencies;
(21) recommend which Federal agencies are, or should be, responsible
for the various aspects of implementation of the Strategy and any budgetary
implications;
(22) address how the United States should engage foreign governments
in developing an international response to climate change; and
(23) incorporate initiatives to open markets and promote the
deployment of a range of climate-friendly technologies developed in the
United States and abroad.
(b) Submission to Congress- Not later than 1 year after the date of
enactment of this section, the President, through the Interagency Task Force
and the Director, shall submit to Congress the Strategy, in the form of a
report that includes--
(1) a description of the Strategy and its goals, including how the
Strategy addresses each of the 4 key elements;
(2) an inventory and evaluation of Federal programs and activities
intended to carry out the Strategy;
(3) a description of how the Strategy will serve as a framework of
climate change response actions by all Federal agencies, including a
description of coordination mechanisms and interagency
activities;
(4) evidence that the Strategy is consistent with other energy,
transportation, industrial, agricultural, forestry, environmental, economic,
and other relevant policies of the United States;
(5) a description of provisions in the Strategy that ensure that it
minimizes any adverse short-term and long-term social, economic, national
security, and environmental impacts, including ensuring that the Strategy is
developed in an economically and environmentally sound manner;
(6) evidence that the Strategy has been developed in a manner that
provides for participation by, and consultation among, Federal, State,
tribal, and local government agencies, nongovernmental organizations,
academia, scientific bodies, industry, the public, and other interested
parties;
(7) a description of Federal activities that promote, to the maximum
extent practicable, public awareness, outreach, and information-sharing to
further the understanding of the full range of climate change-related
issues; and
(8) recommendations for legislative or administrative changes to
Federal programs or activities implemented to carry out this Strategy, in
light of new knowledge of climate change and its impacts and costs or
benefits, or technological capacity to improve mitigation or adaption
activities.
(c) Updates- Not later than 4 years after the date of submission of
the Strategy to Congress under subsection (b), and at the end of each 4-year
period thereafter, the President shall submit to Congress an updated version
of the Strategy.
(d) Progress Reports- Not later than 1 year after the date of
submission of the Strategy to Congress under subsection (b), and annually
thereafter at the time that the President submits to the Congress the budget
of the United States Government under section 1105 of title 31, United States
Code, the President shall submit to Congress a report that--
(1) describes the Strategy, its goals, and the Federal programs and
activities intended to carry out the Strategy through technological,
scientific, mitigation, and adaptation activities;
(2) evaluates the Federal programs and activities implemented as
part of this Strategy against the goals and implementation dates outlined in
the Strategy;
(3) assesses the progress in implementation of the
Strategy;
(4) incorporates the technology program reports required pursuant to
section 1015(a)(3) and subsections (d) and (e) of section 1321;
(5) describes any changes to Federal programs or activities
implemented to carry out this Strategy, in light of new knowledge of climate
change and its impacts and costs or benefits, or technological capacity to
improve mitigation or adaptation activities;
(6) describes all Federal spending on climate change for the current
fiscal year and each of the 5 years previous; categorized by Federal agency
and program function (including scientific research, energy research and
development, regulation, education, and other activities);
(7) estimates the budgetary impact for the current fiscal year and
each of the 5 years previous of any Federal tax credits, tax deductions or
other incentives claimed by taxpayers that are directly or indirectly
attributable to greenhouse gas emissions reduction activities;
(8) estimates the amount, in metric tons, of net greenhouse gas
emissions reduced, avoided, or sequestered directly or indirectly as a
result of the implementation of the Strategy;
(9) evaluates international research and development and
market-based activities and the mitigation actions taken by the United
States and other nations to achieve the long-term goal of the Strategy;
and
(10) makes recommendations for legislative or administrative actions
or adjustments that will accelerate progress towards meeting the near-term
and long-term goals contained in the Strategy.
(e) NATIONAL ACADEMY OF SCIENCES REVIEW-
(1) IN GENERAL- Not later than 90 days after the date of publication
of the Strategy under subsection (b) and each update under subsection (c),
the Director of the National Science Foundation, on behalf of the Director
of the White House Office and the Interagency Task Force, shall enter into
appropriate arrangements with the National Academy of Sciences to conduct a
review of the Strategy or update.
(2) CRITERIA- The review by the National Academy of Sciences shall
evaluate the goals and recommendations contained in the Strategy or update,
taking into consideration--
(A) the adequacy of effort and the appropriateness of focus of the
totality of all public, private, and public-private sector actions of the
United States with respect to the Strategy, including the four key
elements;
(B) the adequacy of the budget and the effectiveness with which
each Federal agency is carrying out its responsibilities;
(C) current scientific knowledge regarding climate change and its
impacts;
(D) current understanding of human social and economic responses
to climate change, and responses of natural ecosystems to climate
change;
(E) advancements in energy technologies that reduce, avoid, or
sequester greenhouse gases or otherwise mitigate the risks of climate
change;
(F) current understanding of economic costs and benefits of
mitigation or adaptation activities;
(G) the existence of alternative policy options that could achieve
the Strategy goals at lower economic, environmental, or social cost;
and
(H) international activities and the actions taken by the United
States and other nations to achieve the long-term goal of the
Strategy.
(3) REPORT- Not later than 1 year after the date of submittal to the
Congress of the Strategy or update, as appropriate, the National Academy of
Sciences shall prepare and submit to the Congress and the President a report
concerning the results of its review, along with any recommendations as
appropriate. Such report shall also be made available to the
public.
(4) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this
subsection, there are authorized to be appropriated to the National Science
Foundation such sums as may be necessary.
SEC. 1014. OFFICE OF NATIONAL CLIMATE CHANGE POLICY.
(1) IN GENERAL- There is established, within the Executive Office of
the President, the Office of National Climate Change Policy.
(2) FOCUS- The White House Office shall have the focus of achieving
the long-term goal of the Strategy while minimizing adverse short-term and
long-term economic and social impacts.
(3) DUTIES- Consistent with paragraph (2), the White House Office
shall--
(A) establish policies, objectives, and priorities for the
Strategy;
(B) in accordance with subsection (d), establish the Interagency
Task Force to serve as the primary mechanism through which the heads of
Federal agencies shall assist the Director of the White House Office in
developing and implementing the Strategy;
(C) to the maximum extent practicable, ensure that the Strategy is
based on objective, quantitative analysis, drawing on the analytical
capabilities of Federal and State agencies, especially the Department
Office;
(D) advise the President concerning necessary changes in
organization, management, budgeting, and personnel allocation of Federal
agencies involved in climate change response activities; and
(E) advise the President and notify a Federal agency if the
policies and discretionary programs of the agency are not well aligned
with, or are not contributing effectively to, the long-term goal of the
Strategy.
(b) DIRECTOR OF THE WHITE HOUSE OFFICE-
(1) IN GENERAL- The White House Office shall be headed by a
Director, who shall report directly to the President, and shall consult with
the appropriate economic, environmental, national security, domestic policy,
science and technology and other offices with the Executive Office of the
President.
(2) APPOINTMENT- The Director of the White House Office shall be a
qualified individual appointed by the President, by and with the advice and
consent of the Senate.
(3) DUTIES OF THE DIRECTOR OF THE WHITE HOUSE OFFICE-
(A) STRATEGY- In accordance with section 1013, the Director of the
White House Office shall coordinate the development and updating of the
Strategy.
(B) INTERAGENCY TASK FORCE- The Director of the White House Office
shall serve as Chair of the Interagency Task Force.
(i) ENERGY, ECONOMIC, ENVIRONMENTAL, TRANSPORTATION, INDUSTRIAL,
AGRICULTURAL, BUILDING, FORESTRY, AND OTHER PROGRAMS- The Director of
the White House Office, using an integrated perspective considering the
totality of actions in the United States, shall advise the President and
the heads of Federal agencies on--
(I) the extent to which United States energy, economic,
environmental, transportation, industrial, agricultural, forestry,
building, and other relevant programs are capable of producing
progress on the long-term goal of the Strategy;
and
(II) the extent to which proposed or newly created energy,
economic, environmental, transportation, industrial, agricultural,
forestry, building, and other relevant programs positively or
negatively affect the ability of the United States to achieve the
long-term goal of the Strategy.
(ii) TAX, TRADE, AND FOREIGN POLICIES- The Director of the White
House Office, using an integrated perspective considering the totality
of actions in the United States, shall advise the President and the
heads of Federal agencies on--
(I) the extent to which the United States tax policy, trade
policy, and foreign policy are capable of producing progress on the
long-term goal of the Strategy; and
(II) the extent to which proposed or newly created tax policy,
trade policy, and foreign policy positively or negatively affect the
ability of the United States to achieve the long-term goal of the
Strategy.
(iii) INTERNATIONAL TREATIES- The Secretary of State, acting in
conjunction with the Interagency Task Force and using the analytical
tools available to the White House Office, shall provide to the Director
of the White House Office an opinion that--
(I) specifies, to the maximum extent practicable, the economic
and environmental costs and benefits of any proposed international
treaties or components of treaties that have an influence on
greenhouse gas management; and
(II) assesses the extent to which the treaties advance the
long-term goal of the Strategy, while minimizing adverse short-term
and long-term economic and social impacts and considering other
impacts.
(I) WITH MEMBERS OF INTERAGENCY TASK FORCE- To the extent
practicable and appropriate, the Director of the White House Office
shall consult with all members of the Interagency Task Force before
providing advice to the President.
(II) WITH OTHER INTERESTED PARTIES- The Director of the White
House Office shall establish a process for obtaining the meaningful
participation of Federal, State, tribal, and local government
agencies, nongovernmental organizations, academia, scientific bodies,
industry, the public, and other interested parties in the development
and updating of the Strategy.
(D) PUBLIC EDUCATION, AWARENESS, OUTREACH, AND
INFORMATION-SHARING- The Director of the White House Office, to the
maximum extent practicable, shall promote public awareness, outreach, and
information-sharing to further the understanding of the full range of
climate change-related issues.
(4) ANNUAL REPORTS- The Director of the White House Office, in
consultation with the Interagency Task Force and other interested parties,
shall prepare the annual reports for submission by the President to Congress
under section 1013(d).
(5) ANALYSIS- During development of the Strategy, preparation of the
annual reports submitted under paragraph (4), and provision of advice to the
President and the heads of Federal agencies, the Director of the White House
Office shall place significant emphasis on the use of objective,
quantitative analysis, taking into consideration any uncertainties
associated with the analysis.
(1) IN GENERAL- The Director of the White House Office shall employ
a professional staff, including the staff appointed under paragraph (2), of
not more than 25 individuals to carry out the duties of the White House
Office.
(2) Intergovernmental personnel and fellowships- The Director of the
White House Office may use the authority provided by the Intergovernmental
Personnel Act of 1970 (42 U.S.C. 4701 et seq.) and subchapter VI of chapter
33 of title 5, United States Code, and fellowships, to obtain staff from
Federal agencies, academia, scientific bodies, or a National Laboratory (as
that term is defined in section 1203), for appointments of a limited
term.
(d) Authorization of Appropriations-
(1) Use of available appropriations- From funds made available to
Federal agencies for the fiscal year in which this title is enacted, the
President shall provide such sums as are necessary to carry out the duties
of the White House Office under this title until the date on which funds are
made available under paragraph (2).
(2) Authorization of appropriations- There is authorized to be
appropriated to the Executive Office of the President to carry out the
duties of the White House Office under this subtitle, $5,000,000 for each of
fiscal years 2003 through 2011, to remain available through September 30,
2011.
(e) Interagency Task Force-
(1) In general- The Director of the White House Office shall
establish the Interagency Task Force.
(2) Composition- The Interagency Task Force shall be composed
of--
(A) the Director of the White House Office, who shall serve as
Chair;
(B) the Secretary of State;
(C) the Secretary of Energy;
(D) the Secretary of Commerce;
(E) the Secretary of Transportation;
(F) the Secretary of Agriculture;
(G) the Administrator of the Environmental Protection
Agency;
(H) the Chairman of the Council of Economic
Advisers;
(I) the Chairman of the Council on Environmental
Quality;
(J) the Director of the Office of Science and Technology
Policy;
(K) the Director of the Office of Management and Budget;
and
(L) the heads of such other Federal agencies as the President
considers appropriate.
(A) In general- The Interagency Task Force shall serve as the
primary forum through which the Federal agencies represented on the
Interagency Task Force jointly assist the Director of the White House
Office in--
(i) developing and updating the Strategy; and
(ii) preparing annual reports under section
1013(d).
(B) Required elements- In carrying out subparagraph (A), the
Interagency Task Force shall--
(i) take into account the long-term goal and other requirements
of the Strategy specified in section 1013(a);
(ii) consult with State, tribal, and local government agencies,
nongovernmental organizations, academia, scientific bodies, industry,
the public, and other interested parties; and
(iii) build consensus around a Strategy that is based on strong
scientific, technical, and economic analyses.
(4) WORKING GROUPS- The Chair, in consultation with the members of
the Interagency Task Force, may establish such topical working groups as are
necessary to carry out the duties of the Interagency Task Force and
implement the Strategy, taking into consideration the key elements of the
Strategy. Such working groups may be comprised of members of the Interagency
Task Force or their designees.
(f) STAFF- In accordance with procedures established by the Chair of
the Interagency Task Force, the Federal agencies represented on the
Interagency Task Force shall provide staff from the agencies to support
information, data collection, and analyses required by the Interagency Task
Force.
(g) HEARINGS- Upon request of the Chair, the Interagency Task Force
may hold such hearings, meet and act at such times and places, take such
testimony, and receive such evidence as the Interagency Task Force considers
to be appropriate.
SEC. 1015. OFFICE OF CLIMATE CHANGE TECHNOLOGY.
(1) IN GENERAL- There is established, within the Department, the
Office of Climate Change Technology.
(2) DUTIES- The Department Office shall--
(A) manage an energy technology research and development program
that directly supports the Strategy by--
(i) focusing on high-risk, bold, breakthrough technologies
that--
(I) have significant promise of contributing to the long-term
goal of the Strategy by--
(aa) mitigating the emissions of greenhouse gases;
(bb) removing and sequestering greenhouse gases from emission
streams; or
(cc) removing and sequestering greenhouse gases from the
atmosphere;
(II) are not being addressed significantly by other Federal
programs; and
(III) would represent a substantial advance beyond technology
available on the date of enactment of this
subtitle;
(ii) forging fundamentally new research and development
partnerships among various Department, other Federal, and State
programs, particularly between basic science and energy technology
programs, in cases in which such partnerships have significant potential
to affect the ability of the United States to achieve the long-term goal
of the Strategy at the lowest possible cost;
(iii) forging international research and development
partnerships that are in the interests of the United States and make
progress on achieving the long-term goal of the
Strategy;
(iv) making available, through monitoring, experimentation, and
analysis, data that are essential to proving the technical and economic
viability of technology central to addressing climate change;
and
(v) transferring research and development programs to other
program offices of the Department once such a research and development
program crosses the threshold of high-risk research and moves into the
realm of more conventional technology development;
(B) through active participation in the Interagency Task Force and
utilization of the analytical capabilities of the Department Office, share
analyses of alternative climate change strategies with other agencies
represented on the Interagency Task Force to assist them in
understanding--
(i) the scale of the climate change challenge;
and
(ii) how actions of the Federal agencies on the Interagency Task
Force positively or negatively contribute to climate change
solutions;
(C) provide analytical support to the White House Office,
particularly in support of the development of the Strategy and associated
progress reporting;
(D) foster the development of tools, data, and capabilities to
ensure that--
(i) the United States has a robust capability for evaluating
alternative climate change response scenarios; and
(ii) the Department Office provides long-term analytical
continuity during the terms of service of successive
Presidents;
(E) identify the total contribution of all Department programs to
the Strategy; and
(F) advise the Secretary on all aspects of climate change-related
issues, including necessary changes in Department organization,
management, budgeting, and personnel allocation in the programs involved
in climate change response-related activities.
(3) ANNUAL REPORTS- The Department Office shall prepare an annual
report for submission by the Secretary to Congress and the White House
Office that--
(A) assesses progress toward meeting the goals of the energy
technology research and development program described in this
section;
(B) assesses the activities of the Department
Office;
(C) assesses the contributions of all energy technology research
and development programs of the Department (including science programs) to
the long-term goal and other requirements of the Strategy;
and
(D) make recommendations for actions by the Department and other
Federal agencies to address the components of technology development that
are necessary to support the Strategy.
(b) DIRECTOR OF THE DEPARTMENT OFFICE-
(1) IN GENERAL- The Department Office shall be headed by a Director,
who shall be a qualified individual appointed by the President, and who
shall be compensated at a rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(2) REPORTING- The Director of the Department Office shall report
directly to the Under Secretary for Energy and Science.
(3) VACANCIES- A vacancy in the position of the Director of the
Department Office shall be filled in the same manner as the original
appointment was made.
(c) INTERGOVERNMENTAL PERSONNEL- The Department Office may use the
authority provided by the Intergovernmental Personnel Act of 1970 (42 U.S.C.
4701 et seq.), subchapter VI of chapter 33 of title 5, United States Code, and
other departmental personnel authorities, to obtain staff for appointments of
a limited term.
(d) RELATIONSHIP TO OTHER DEPARTMENT PROGRAMS- Each project carried
out by the Department Office shall be--
(1) initiated only after consultation with one or more other
appropriate program offices of the Department that support research and
development in the areas relating to the project;
(2) managed by the Department Office; and
(3) in the case of a project that reaches a sufficient level of
maturity, with the concurrence of the Department Office and the appropriate
office described in paragraph (1), transferred to the appropriate office,
along with the funds necessary to continue the project to the point at which
non-Federal funding can provide substantial support for the
project.
(e) COLLABORATION AND COST SHARING-
(1) WITH OTHER FEDERAL AGENCIES- Projects supported by the
Department Office may include participation of, and be supported by, other
Federal agencies that have a role in the development, commercialization, or
transfer of energy, transportation, industrial, agricultural, forestry, or
other climate change-related technology.
(2) WITH THE PRIVATE SECTOR-
(A) IN GENERAL- Notwithstanding section 1403, the Department
Office shall create an operating model that allows for collaboration,
division of effort, and cost sharing with industry on individual climate
change response projects.
(B) REQUIREMENTS- Although cost sharing in some cases may be
appropriate, the Department Office shall focus on long-term high-risk
research and development and should not make industrial partnerships or
cost sharing a requirement, if such a requirement would bias the
activities of the Department Office toward incremental
innovations.
(C) REEVALUATION ON TRANSFER- At such time as any bold,
breakthrough research and development program reaches a sufficient level
of technological maturity such that the program is transferred to a
program office of the Department other than the Department Office, the
cost-sharing requirements and criteria applicable to the program shall be
reevaluated.
(D) PUBLICATION IN FEDERAL REGISTER- Each cost-sharing agreement
entered into under this paragraph shall be published in the Federal
Register.
(f) ANALYSIS OF CLIMATE CHANGE STRATEGY-
(1) IN GENERAL- The Department Office shall foster the development
and application of advanced computational tools, data, and capabilities
that, together with the capabilities of other Federal agencies, support
integrated assessment of alternative climate change response scenarios and
implementation of the Strategy.
(A) IN GENERAL- The Department Office shall--
(i) develop and maintain core analytical competencies and
complex, integrated computational modeling capabilities that, together
with the capabilities of other Federal agencies, are necessary to
support the design and implementation of the Strategy;
and
(ii) track United States and international progress toward the
long-term goal of the Strategy.
(B) INTERNATIONAL CARBON DIOXIDE SEQUESTRATION MONITORING AND DATA
PROGRAM- In consultation with Federal, State, academic, scientific,
private sector, nongovernmental, tribal, and international carbon capture
and sequestration technology programs, the Department Office shall design
and carry out an international carbon dioxide sequestration monitoring and
data program to collect, analyze, and make available the technical and
economic data to ascertain--
(i) whether engineered sequestration and terrestrial
sequestration will be acceptable technologies from regulatory, economic,
and international perspectives;
(ii) whether carbon dioxide sequestered in geological formations
or ocean systems is stable and has inconsequential leakage rates on a
geologic time-scale; and
(iii) the extent to which forest, agricultural, and other
terrestrial systems are suitable carbon sinks.
(A) IN GENERAL- The Department Office shall develop and maintain
expertise in integrated assessment, modeling, and related capabilities
necessary--
(i) to understand the relationship between natural,
agricultural, industrial, energy, and economic systems;
(ii) to design effective research and development programs;
and
(iii) to assist with the development and implementation of the
Strategy.
(B) TECHNOLOGY TRANSFER AND DIFFUSION- The expertise described in
clause (i) shall include knowledge of technology transfer and technology
diffusion in United States and foreign markets.
(4) DISSEMINATION OF INFORMATION- The Department Office shall
ensure, to the maximum extent practicable, that technical and scientific
knowledge relating to greenhouse gas emission reduction, avoidance, and
sequestration is broadly disseminated through publications, fellowships, and
training programs.
(5) ASSESSMENTS- In a manner consistent with the Strategy, the
Department shall conduct assessments of deployment of climate-friendly
technology.
(6) ANALYSIS- During development of the Strategy, annual reports
submitted under subsection (a)(3), and advice to the Secretary, the Director
of the Department Office shall place significant emphasis on the use of
objective, quantitative analysis, taking into consideration any associated
uncertainties.
(g) AUTHORIZATION OF APPROPRIATIONS-
(1) USE OF AVAILABLE APPROPRIATIONS- From funds made available to
Federal agencies for the fiscal year in which this subtitle is enacted, the
President shall provide such sums as are necessary to carry out the duties
of the Department Office under this subtitle until the date on which funds
are made available under paragraph (2).
(2) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Secretary, to carry out the duties of the Department
Office under this subtitle, $4,750,000,000 for the period of fiscal years
2003 through 2011, to remain available through September 30,
2011.
(3) ADDITONAL AMOUNTS- Amounts authorized to be appropriated under
this section shall be in addition to--
(A) amounts made available to carry out the United States Global
Change Research Program under the Global Change Research Act of 1990 (15
U.S.C. 2921 et seq.); and
(B) amounts made available under other provisions of law for
energy research and development.
SEC. 1016. ADDITIONAL OFFICES AND ACTIVITIES.
The Secretary of Agriculture, the Secretary of Transportation, the
Secretary of Commerce, the Administrator of the Environmental Protection
Agency, and the heads of other Federal agencies may establish such offices and
carry out such activities, in addition to those established or authorized by
this Act, as are necessary to carry out this Act.
Subtitle C--Science and Technology Policy
SEC. 1021. GLOBAL CLIMATE CHANGE IN THE OFFICE OF SCIENCE AND TECHNOLOGY
POLICY.
Section 101(b) of the National Science and Technology Policy,
Organization, and Priorities Act of 1976 (42 U.S.C. 6601(b)) is
amended--
(1) by redesignating paragraphs (7) through (13) as paragraphs (8)
through (14), respectively; and
(2) by inserting after paragraph (6) the following:
`(7) improving efforts to understand, assess, predict, mitigate, and
respond to global climate change;'.
SEC. 1022. DIRECTOR OF OFFICE OF SCIENCE AND TECHNOLOGY POLICY
FUNCTIONS.
(a) ADVISE PRESIDENT ON GLOBAL CLIMATE CHANGE- Section 204(b)(1) of
the National Science and Technology Policy, Organization, and Priorities Act
of 1976 (42 U.S.C. 6613(b)(1)) is amended by inserting `global climate
change,' after `to,'.
(b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLIMATE CHANGE POLICY-
Section 207 of that Act (42 U.S.C. 6616) is amended--
(1) by redesignating subsections (b) and (c) as subsections (c) and
(d), respectively; and
(2) by inserting after subsection (a) the following:
`(b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLIMATE CHANGE POLICY- In
carrying out this Act, the Director shall advise the Director of the Office of
National Climate Change Policy on matters concerning science and technology as
they relate to global climate change.'.
Subtitle D--Miscellaneous Provisions
SEC. 1031. ADDITIONAL INFORMATION FOR REGULATORY REVIEW.
In each case that an agency prepares and submits a Statement of Energy
Effects pursuant to Executive Order 13211 of May 18, 2001 (relating to actions
concerning regulations that significantly affect energy supply, distribution,
or use), the agency shall also submit an estimate of the change in net annual
greenhouse gas emissions resulting from the proposed significant energy action
and any reasonable alternatives to the action.
SEC. 1032. GREENHOUSE GAS EMISSIONS FROM FEDERAL FACILITIES.
(a) METHODOLOGY- Not later than 1 year after the date of enactment of
this section, the Secretary of Energy, Secretary of Agriculture, Secretary of
Commerce, and Administrator of the Environmental Protection Agency shall
publish a jointly developed methodology for preparing estimates of annual net
greenhouse gas emissions from all federally owned, leased, or operated
facilities and emission sources, including stationary, mobile, and indirect
emissions as may be determined to be feasible.
(b) PUBLICATION- Not later than 18 months after the date of enactment
of this section, and annually thereafter, the Secretary of Energy shall
publish an estimate of annual net greenhouse gas emissions from all federally
owned, leased, or operated facilities and emission sources, using the
methodology published under subsection (a).
TITLE XI--NATIONAL GREENHOUSE GAS DATABASE
SEC. 1101. PURPOSE.
The purpose of this title is to establish a greenhouse gas inventory,
reductions registry, and information system that--
(1) are complete, consistent, transparent, and accurate;
(2) will create reliable and accurate data that can be used by
public and private entities to design efficient and effective greenhouse gas
emission reduction strategies; and
(3) will acknowledge and encourage greenhouse gas emission
reductions.
SEC. 1102. DEFINITIONS.
(1) ADMINISTRATOR- The term `Administrator' means the Administrator
of the Environmental Protection Agency.
(2) BASELINE- The term `baseline' means the historic greenhouse gas
emission levels of an entity, as adjusted upward by the designated agency to
reflect actual reductions that are verified in accordance with--
(A) regulations promulgated under section 1104(c)(1);
and
(B) relevant standards and methods developed under this
title.
(3) DATABASE- The term `database' means the National Greenhouse Gas
Database established under section 1104.
(4) DESIGNATED AGENCY- The term `designated agency' means a
department or agency to which responsibility for a function or program is
assigned under the memorandum of agreement entered into under section
1103(a).
(5) DIRECT EMISSIONS- The term `direct emissions' means greenhouse
gas emissions by an entity from a facility that is owned or controlled by
that entity.
(6) ENTITY- The term `entity' means--
(A) a person located in the United States; or
(B) a public or private entity, to the extent that the entity
operates in the United States.
(7) FACILITY- The term `facility' means--
(A) all buildings, structures, or installations located on any 1
or more contiguous or adjacent properties of an entity in the United
States; and
(B) a fleet of 20 or more motor vehicles under the common control
of an entity.
(8) GREENHOUSE GAS- The term `greenhouse gas' means--
(F) sulfur hexafluoride; and
(G) any other anthropogenic climate-forcing emissions with
significant ascertainable global warming potential, as--
(i) recommended by the National Academy of Sciences under
section 1107(b)(3); and
(ii) determined in regulations promulgated under section
1104(c)(1) (or revisions to the regulations) to be appropriate and
practicable for coverage under this title.
(9) INDIRECT EMISSIONS- The term `indirect emissions' means
greenhouse gas emissions that--
(A) are a result of the activities of an entity; but
(B)(i) are emitted from a facility owned or controlled by another
entity; and
(ii) are not reported as direct emissions by the entity the
activities of which resulted in the emissions.
(10) REGISTRY- The term `registry' means the registry of greenhouse
gas emission reductions established as a component of the database under
section 1104(b)(2).
(A) IN GENERAL- The term `sequestration' means the capture,
long-term separation, isolation, or removal of greenhouse gases from the
atmosphere.
(B) INCLUSIONS- The term `sequestration' includes--
(i) soil carbon sequestration;
(ii) agricultural and conservation practices;
(iv) forest preservation;
(v) maintenance of an underground reservoir;
and
(vi) any other appropriate biological or geological method of
capture, isolation, or removal of greenhouse gases from the atmosphere,
as determined by the Administrator.
SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.
(a) IN GENERAL- Not later than 1 year after the date of enactment of
this Act, the President, acting through the Director of the Office of National
Climate Change Policy, shall direct the Secretary of Energy, the Secretary of
Commerce, the Secretary of Agriculture, the Secretary of Transportation, and
the Administrator to enter into a memorandum of agreement under which those
heads of Federal agencies will--
(1) recognize and maintain statutory and regulatory authorities,
functions, and programs that--
(A) are established as of the date of enactment of this Act under
other law;
(B) provide for the collection of data relating to greenhouse gas
emissions and effects; and
(C) are necessary for the operation of the database;
(2)(A) distribute additional responsibilities and activities
identified under this title to Federal departments or agencies in accordance
with the missions and expertise of those departments and agencies;
and
(B) maximize the use of available resources of those departments and
agencies; and
(3) provide for the comprehensive collection and analysis of data on
greenhouse gas emissions relating to product use (including the use of
fossil fuels and energy-consuming appliances and vehicles).
(b) MINIMUM REQUIREMENTS- The memorandum of agreement entered into
under subsection (a) shall, at a minimum, retain the following functions for
the designated agencies:
(1) DEPARTMENT OF ENERGY- The Secretary of Energy shall be primarily
responsible for developing, maintaining, and verifying the registry and the
emission reductions reported under section 1605(b) of the Energy Policy Act
of 1992 (42 U.S.C. 13385(b)).
(2) DEPARTMENT OF COMMERCE- The Secretary of Commerce shall be
primarily responsible for the development of--
(A) measurement standards for the monitoring of emissions;
and
(B) verification technologies and methods to ensure the
maintenance of a consistent and technically accurate record of emissions,
emission reductions, and atmospheric concentrations of greenhouse gases
for the database.
(3) ENVIRONMENTAL PROTECTION AGENCY- The Administrator shall be
primarily responsible for--
(A) emissions monitoring, measurement, verification, and data
collection under this title and title IV (relating to acid deposition
control) and title VIII of the Clean Air Act (42 U.S.C. 7651 et seq.),
including mobile source emissions information from implementation of the
corporate average fuel economy program under chapter 329 of title 49,
United States Code; and
(B) responsibilities of the Environmental Protection Agency
relating to completion of the national inventory for compliance with the
United Nations Framework Convention on Climate Change, done at New York on
May 9, 1992.
(4) DEPARTMENT OF AGRICULTURE- The Secretary of Agriculture shall be
primarily responsible for--
(A) developing measurement techniques for--
(i) soil carbon sequestration; and
(ii) forest preservation and reforestation activities;
and
(B) providing technical advice relating to biological carbon
sequestration measurement and verification standards for measuring
greenhouse gas emission reductions or offsets.
(c) DRAFT MEMORANDUM OF AGREEMENT- Not later than 15 months after the
date of enactment of this Act, the President, acting through the Director of
the Office of National Climate Change Policy, shall publish in the Federal
Register, and solicit comments on, a draft version of the memorandum of
agreement described in subsection (a).
(d) NO JUDICIAL REVIEW- The final version of the memorandum of
agreement shall not be subject to judicial review.
SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.
(a) ESTABLISHMENT- As soon as practicable after the date of enactment
of this Act, the designated agencies, in consultation with the private sector
and nongovernmental organizations, shall jointly establish, operate, and
maintain a database, to be known as the `National Greenhouse Gas Database', to
collect, verify, and analyze information on greenhouse gas emissions by
entities.
(b) NATIONAL GREENHOUSE GAS DATABASE COMPONENTS- The database shall
consist of--
(1) an inventory of greenhouse gas emissions; and
(2) a registry of greenhouse gas emission reductions.
(c) COMPREHENSIVE SYSTEM-
(1) IN GENERAL- Not later than 2 years after the date of enactment
of this Act, the designated agencies shall jointly promulgate regulations to
implement a comprehensive system for greenhouse gas emissions reporting,
inventorying, and reductions registration.
(2) REQUIREMENTS- The designated agencies shall ensure, to the
maximum extent practicable, that--
(A) the comprehensive system described in paragraph (1) is
designed to--
(i) maximize completeness, transparency, and accuracy of
information reported; and
(ii) minimize costs incurred by entities in measuring and
reporting greenhouse gas emissions; and
(B) the regulations promulgated under paragraph (1) establish
procedures and protocols necessary--
(i) to prevent the reporting of some or all of the same
greenhouse gas emissions or emission reductions by more than 1 reporting
entity;
(ii) to provide for corrections to errors in data submitted to
the database;
(iii) to provide for adjustment to data by reporting entities
that have had a significant organizational change (including mergers,
acquisitions, and divestiture), in order to maintain comparability among
data in the database over time;
(iv) to provide for adjustments to reflect new technologies or
methods for measuring or calculating greenhouse gas emissions;
and
(v) to account for changes in registration of ownership of
emission reductions resulting from a voluntary private transaction
between reporting entities.
(3) BASELINE IDENTIFICATION AND PROTECTION- Through regulations
promulgated under paragraph (1), the designated agencies shall develop and
implement a system that provides--
(A) for the provision of unique serial numbers to identify the
verified emission reductions made by an entity relative to the baseline of
the entity;
(B) for the tracking of the reductions associated with the serial
numbers; and
(C) that the reductions may be applied, as determined to be
appropriate by any Act of Congress enacted after the date of enactment of
this Act, toward a Federal requirement under such an Act that is imposed
on the entity for the purpose of reducing greenhouse gas
emissions.
SEC. 1105. GREENHOUSE GAS REDUCTION REPORTING.
(a) IN GENERAL- An entity that participates in the registry shall meet
the requirements described in subsection (b).
(1) IN GENERAL- The requirements referred to in subsection (a) are
that an entity (other than an entity described in paragraph (2))
shall--
(A) establish a baseline (including all of the entity's greenhouse
gas emissions on an entity-wide basis); and
(B) submit the report described in subsection
(c)(1).
(2) REQUIREMENTS APPLICABLE TO ENTITIES ENTERING INTO CERTAIN
AGREEMENTS- An entity that enters into an agreement with a participant in
the registry for the purpose of a carbon sequestration project shall not be
required to comply with the requirements specified in paragraph (1) unless
that entity is required to comply with the requirements by reason of an
activity other than the agreement.
(1) REQUIRED REPORT- Not later than April 1 of the third calendar
year that begins after the date of enactment of this Act, and not later than
April 1 of each calendar year thereafter, subject to paragraph (3), an
entity described in subsection (a) shall submit to each appropriate
designated agency a report that describes, for the preceding calendar year,
the entity-wide greenhouse gas emissions (as reported at the facility
level), including--
(A) the total quantity of each greenhouse gas emitted, expressed
in terms of mass and in terms of the quantity of carbon dioxide
equivalent;
(B) an estimate of the greenhouse gas emissions from fossil fuel
combusted by products manufactured and sold by the entity in the previous
calendar year, determined over the average lifetime of those products;
and
(C) such other categories of emissions as the designated agency
determines in the regulations promulgated under section 1104(c)(1) may be
practicable and useful for the purposes of this title, such
as--
(i) direct emissions from stationary sources;
(ii) indirect emissions from imported electricity, heat, and
steam;
(iii) process and fugitive emissions; and
(iv) production or importation of greenhouse
gases.
(2) VOLUNTARY REPORTING- An entity described in subsection (a) may
(along with establishing a baseline and reporting reductions under this
section)--
(A) submit a report described in paragraph (1) before the date
specified in that paragraph for the purposes of achieving and
commoditizing greenhouse gas reductions through use of the registry;
and
(B) submit to any designated agency, for inclusion in the
registry, information that has been verified in accordance with
regulations promulgated under section 1104(c)(1) and that relates
to--
(i) with respect to the calendar year preceding the calendar
year in which the information is submitted, and with respect to any
greenhouse gas emitted by the entity--
(I) project reductions from facilities owned or controlled by
the reporting entity in the United States;
(II) transfers of project reductions to and from any other
entity;
(III) project reductions and transfers of project reductions
outside the United States;
(IV) other indirect emissions that are not required to be
reported under paragraph (1); and
(V) product use phase emissions;
(ii) with respect to greenhouse gas emission reductions
activities of the entity that have been carried out during or after
1990, verified in accordance with regulations promulgated under section
1104(c)(1), and submitted to 1 or more designated agencies before the
date that is 4 years after the date of enactment of this Act, any
greenhouse gas emission reductions that have been reported or submitted
by an entity under--
(I) section 1605(b) of the Energy Policy Act of 1992 (42
U.S.C. 13385(b)); or
(II) any other Federal or State voluntary greenhouse gas
reduction program; and
(iii) any project or activity for the reduction of greenhouse
gas emissions or sequestration of a greenhouse gas that is carried out
by the entity, including a project or activity relating
to--
(II) energy efficiency improvements;
(III) use of renewable energy;
(IV) use of combined heat and power
systems;
(V) management of cropland, grassland, or grazing
land;
(VI) a forestry activity that increases forest carbon stocks
or reduces forest carbon emissions;
(VII) carbon capture and storage;
(IX) greenhouse gas offset investment; and
(X) any other practice for achieving greenhouse gas reductions
as recognized by 1 or more designated agencies.
(3) EXEMPTIONS FROM REPORTING-
(A) IN GENERAL- If the Director of the Office of National Climate
Change Policy determines under section 1108(b) that the reporting
requirements under paragraph (1) shall apply to all entities (other than
entities exempted by this paragraph), regardless of participation or
nonparticipation in the registry, an entity shall be required to submit
reports under paragraph (1) only if, in any calendar year after the date
of enactment of this Act--
(i) the total greenhouse gas emissions of at least 1 facility
owned by the entity exceeds 10,000 metric tons of carbon dioxide
equivalent (or such greater quantity as may be established by a
designated agency by regulation); or
(ii)(I) the total quantity of greenhouse gases produced,
distributed, or imported by the entity exceeds 10,000 metric tons of
carbon dioxide equivalent (or such greater quantity as may be
established by a designated agency by regulation); and
(II) the entity is not a feedlot or other farming operation (as
defined in section 101 of title 11, United States
Code).
(B) ENTITIES ALREADY REPORTING-
(i) IN GENERAL- An entity that, as of the date of enactment of
this Act, is required to report carbon dioxide emissions data to a
Federal agency shall not be required to re-report that data for the
purposes of this title.
(ii) REVIEW OF PARTICIPATION- For the purpose of section 1108,
emissions reported under clause (i) shall be considered to be reported
by the entity to the registry.
(4) PROVISION OF VERIFICATION INFORMATION BY REPORTING ENTITIES-
Each entity that submits a report under this subsection shall provide
information sufficient for each designated agency to which the report is
submitted to verify, in accordance with measurement and verification methods
and standards developed under section 1106, that the greenhouse gas report
of the reporting entity--
(A) has been accurately reported; and
(B) in the case of each voluntary report under paragraph (2),
represents--
(i) actual reductions in direct greenhouse gas
emissions--
(I) relative to historic emission levels of the entity;
and
(II) net of any increases in--
(aa) direct emissions; and
(bb) indirect emissions described in paragraph (1)(C)(ii);
or
(ii) actual increases in net sequestration.
(5) FAILURE TO SUBMIT REPORT- An entity that participates or has
participated in the registry and that fails to submit a report required
under this subsection shall be prohibited from including emission reductions
reported to the registry in the calculation of the baseline of the entity in
future years.
(6) INDEPENDENT THIRD-PARTY VERIFICATION- To meet the requirements
of this section and section 1106, a entity that is required to submit a
report under this section may--
(A) obtain independent third-party verification; and
(B) present the results of the third-party verification to each
appropriate designated agency.
(7) AVAILABILITY OF DATA-
(A) IN GENERAL- The designated agencies shall ensure, to the
maximum extent practicable, that information in the database
is--
(ii) accessible to the public; and
(iii) made available in electronic format on the
Internet.
(B) EXCEPTION- Subparagraph (A) shall not apply in any case in
which the designated agencies determine that publishing or otherwise
making available information described in that subparagraph poses a risk
to national security.
(8) DATA INFRASTRUCTURE- The designated agencies shall ensure, to
the maximum extent practicable, that the database uses, and is integrated
with, Federal, State, and regional greenhouse gas data collection and
reporting systems in effect as of the date of enactment of this
Act.
(9) ADDITIONAL ISSUES TO BE CONSIDERED- In promulgating the
regulations under section 1104(c)(1) and implementing the database, the
designated agencies shall take into consideration a broad range of issues
involved in establishing an effective database, including--
(A) the appropriate units for reporting each greenhouse
gas;
(B) the data and information systems and measures necessary to
identify, track, and verify greenhouse gas emission reductions in a manner
that will encourage the development of private sector trading and
exchanges;
(C) the greenhouse gas reduction and sequestration methods and
standards applied in other countries, as applicable or
relevant;
(D) the extent to which available fossil fuels, greenhouse gas
emissions, and greenhouse gas production and importation data are adequate
to implement the database;
(E) the differences in, and potential uniqueness of, the
facilities, operations, and business and other relevant practices of
persons and entities in the private and public sectors that may be
expected to participate in the registry; and
(F) the need of the registry to maintain valid and reliable
information on baselines of entities so that, in the event of any future
action by Congress to require entities, individually or collectively, to
reduce greenhouse gas emissions, Congress will be able--
(i) to take into account that information; and
(ii) to avoid enacting legislation that penalizes entities for
achieving and reporting reductions.
(d) ANNUAL REPORT- The designated agencies shall jointly publish an
annual report that--
(1) describes the total greenhouse gas emissions and emission
reductions reported to the database during the year covered by the
report;
(2) provides entity-by-entity and sector-by-sector analyses of the
emissions and emission reductions reported;
(3) describes the atmospheric concentrations of greenhouse gases;
and
(4) provides a comparison of current and past atmospheric
concentrations of greenhouse gases.
SEC. 1106. MEASUREMENT AND VERIFICATION.
(1) IN GENERAL- Not later than 1 year after the date of enactment of
this Act, the designated agencies shall jointly develop comprehensive
measurement and verification methods and standards to ensure a consistent
and technically accurate record of greenhouse gas emissions, emission
reductions, sequestration, and atmospheric concentrations for use in the
registry.
(2) REQUIREMENTS- The methods and standards developed under
paragraph (1) shall address the need for--
(A) standardized measurement and verification practices for
reports made by all entities participating in the registry, taking into
account--
(i) protocols and standards in use by entities desiring to
participate in the registry as of the date of development of the methods
and standards under paragraph (1);
(ii) boundary issues, such as leakage and shifted
use;
(iii) avoidance of double counting of greenhouse gas emissions
and emission reductions; and
(iv) such other factors as the designated agencies determine to
be appropriate;
(B) measurement and verification of actions taken to reduce,
avoid, or sequester greenhouse gas emissions;
(C) in coordination with the Secretary of Agriculture, measurement
of the results of the use of carbon sequestration and carbon recapture
technologies, including--
(i) organic soil carbon sequestration practices;
and
(ii) forest preservation and reforestation activities that
adequately address the issues of permanence, leakage, and
verification;
(D) such other measurement and verification standards as the
Secretary of Commerce, the Secretary of Agriculture, the Administrator,
and the Secretary of Energy determine to be appropriate; and
(E) other factors that, as determined by the designated agencies,
will allow entities to adequately establish a fair and reliable
measurement and reporting system.
(b) REVIEW AND REVISION- The designated agencies shall periodically
review, and revise as necessary, the methods and standards developed under
subsection (a).
(c) PUBLIC PARTICIPATION- The Secretary of Commerce shall--
(1) make available to the public for comment, in draft form and for
a period of at least 90 days, the methods and standards developed under
subsection (a); and
(2) after the 90-day period referred to in paragraph (1), in
coordination with the Secretary of Energy, the Secretary of Agriculture, and
the Administrator, adopt the methods and standards developed under
subsection (a) for use in implementing the database.
(d) EXPERTS AND CONSULTANTS-
(1) IN GENERAL- The designated agencies may obtain the services of
experts and consultants in the private and nonprofit sectors in accordance
with section 3109 of title 5, United States Code, in the areas of greenhouse
gas measurement, certification, and emission trading.
(2) AVAILABLE ARRANGEMENTS- In obtaining any service described in
paragraph (1), the designated agencies may use any available grant,
contract, cooperative agreement, or other arrangement authorized by
law.
SEC. 1107. INDEPENDENT REVIEWS.
(a) IN GENERAL- Not later than 5 years after the date of enactment of
this Act, and every 3 years thereafter, the Comptroller General of the United
States shall submit to Congress a report that--
(1) describes the efficacy of the implementation and operation of
the database; and
(2) includes any recommendations for improvements to this title and
programs carried out under this title--
(A) to achieve a consistent and technically accurate record of
greenhouse gas emissions, emission reductions, and atmospheric
concentrations; and
(B) to achieve the purposes of this title.
(b) REVIEW OF SCIENTIFIC METHODS- The designated agencies shall enter
into an agreement with the National Academy of Sciences under which the
National Academy of Sciences shall--
(1) review the scientific methods, assumptions, and standards used
by the designated agencies in implementing this title;
(2) not later than 4 years after the date of enactment of this Act,
submit to Congress a report that describes any recommendations for
improving--
(A) those methods and standards; and
(B) related elements of the programs, and structure of the
database, established by this title; and
(3) regularly review and update as appropriate the list of
anthropogenic climate-forcing emissions with significant global warming
potential described in section 1102(8)(G).
SEC. 1108. REVIEW OF PARTICIPATION.
(a) IN GENERAL- Not later than 5 years after the date of enactment of
this Act, the Director of the Office of National Climate Change Policy shall
determine whether the reports submitted to the registry under section
1105(c)(1) represent less than 60 percent of the national aggregate
anthropogenic greenhouse gas emissions.
(b) INCREASED APPLICABILITY OF REQUIREMENTS- If the Director of the
Office of National Climate Change Policy determines under subsection (a) that
less than 60 percent of the aggregate national anthropogenic greenhouse gas
emissions are being reported to the registry--
(1) the reporting requirements under section 1105(c)(1) shall apply
to all entities (except entities exempted under section 1105(c)(3)),
regardless of any participation or nonparticipation by the entities in the
registry; and
(2) each entity shall submit a report described in section
1105(c)(1)--
(A) not later than the earlier of--
(i) April 30 of the calendar year immediately following the year
in which the Director of the Office of National Climate Change Policy
makes the determination under subsection (a); or
(ii) the date that is 1 year after the date on which the
Director of the Office of National Climate Change Policy makes the
determination under subsection (a); and
(c) RESOLUTION OF DISAPPROVAL- For the purposes of this section, the
determination of the Director of the Office of National Climate Change Policy
under subsection (a) shall be considered to be a major rule (as defined in
section 804(2) of title 5, United States Code) subject to the congressional
disapproval procedure under section 802 of title 5, United States
Code.
SEC. 1109. ENFORCEMENT.
If an entity that is required to report greenhouse gas emissions under
section 1105(c)(1) or 1108 fails to comply with that requirement, the Attorney
General may, at the request of the designated agencies, bring a civil action
in United States district court against the entity to impose on the entity a
civil penalty of not more than $25,000 for each day for which the entity fails
to comply with that requirement.
SEC. 1110. REPORT ON STATUTORY CHANGES AND HARMONIZATION.
Not later than 3 years after the date of enactment of this Act, the
President shall submit to Congress a report that describes any modifications
to this title or any other provision of law that are necessary to improve the
accuracy or operation of the database and related programs under this
title.
SEC. 1111. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary to
carry out this title.
DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND
TRAINING
TITLE XII--ENERGY RESEARCH AND DEVELOPMENT
PROGRAMS
SEC. 1201. SHORT TITLE.
This division may be cited as the `Energy Science and Technology
Enhancement Act of 2002'.
SEC. 1202. FINDINGS.
The Congress finds the following:
(1) A coherent national energy strategy requires an energy research
and development program that supports basic energy research and provides
mechanisms to develop, demonstrate, and deploy new energy technologies in
partnership with industry.
(2) An aggressive national energy research, development,
demonstration, and technology deployment program is an integral part of a
national climate change strategy, because it can reduce--
(A) United States energy intensity by 1.9 percent per year from
1999 to 2020;
(B) United States energy consumption in 2020 by 8 quadrillion Btu
from otherwise expected levels; and
(C) United States carbon dioxide emissions from expected levels by
166 million metric tons in carbon equivalent in 2020.
(3) An aggressive national energy research, development,
demonstration, and technology deployment program can help maintain domestic
United States production of energy, increase United States hydrocarbon
reserves by 14 percent, and lower natural gas prices by 20 percent, compared
to estimates for 2020.
(4) An aggressive national energy research, development,
demonstration, and technology deployment program is needed if United States
suppliers and manufacturers are to compete in future markets for advanced
energy technologies.
SEC. 1203. DEFINITIONS.
(1) DEPARTMENT- The term `Department' means the Department of
Energy.
(2) DEPARTMENTAL MISSION- The term `departmental mission' means any
of the functions vested in the Secretary of Energy by the Department of
Energy Organization Act (42 U.S.C. 7101 et seq.) or other law.
(3) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
education' has the meaning given that term in section 1201(a) of the Higher
Education Act of 1965 (20 U.S.C. 1141(a));
(4) NATIONAL LABORATORY- The term `National Laboratory' means any of
the following multipurpose laboratories owned by the Department of
Energy--
(A) Argonne National Laboratory;
(B) Brookhaven National Laboratory;
(C) Idaho National Engineering and Environmental
Laboratory;
(D) Lawrence Berkeley National Laboratory;
(E) Lawrence Livermore National Laboratory;
(F) Los Alamos National Laboratory;
(G) National Energy Technology Laboratory;
(H) National Renewable Energy Laboratory;
(I) Oak Ridge National Laboratory;
(J) Pacific Northwest National Laboratory; or
(K) Sandia National Laboratory.
(5) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(6) TECHNOLOGY DEPLOYMENT- The term `technology deployment' means
activities to promote acceptance and utilization of technologies in
commercial application, including activities undertaken pursuant to section
7 of the Federal Nonnuclear Energy Research and Development Act of 1974 (42
U.S.C. 5906) or section 6 of the Renewable Energy and Energy Efficiency
Technology Competitiveness Act of 1989 (42 U.S.C. 12007).
SEC. 1204. CONSTRUCTION WITH OTHER LAWS.
Except as otherwise provided in this title and title XIV, the
Secretary shall carry out the research, development, demonstration, and
technology deployment programs authorized by this title in accordance with the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the Federal Nonnuclear
Research and Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy
Policy Act of 1992 (42 U.S.C. 13201 et seq.), or any other Act under which the
Secretary is authorized to carry out such activities.
Subtitle A--Energy Efficiency
SEC. 1211. ENHANCED ENERGY EFFICIENCY RESEARCH AND
DEVELOPMENT.
(a) PROGRAM DIRECTION- The Secretary shall conduct balanced energy
research, development, demonstration, and technology deployment programs to
enhance energy efficiency in buildings, industry, power technologies, and
transportation.
(1) ENERGY-EFFICIENT HOUSING- The goal of the energy-efficient
housing program shall be to develop, in partnership with industry, enabling
technologies (including lighting technologies), designs, production methods,
and supporting activities that will, by 2010--
(A) cut the energy use of new housing by 50 percent,
and
(B) reduce energy use in existing homes by 30
percent.
(2) INDUSTRIAL ENERGY EFFICIENCY- The goal of the industrial energy
efficiency program shall be to develop, in partnership with industry,
enabling technologies, designs, production methods, and supporting
activities that will, by 2010, enable energy-intensive industries such as
the following industries to reduce their energy intensity by at least 25
percent--
(A) the wood product manufacturing industry;
(B) the pulp and paper industry;
(C) the petroleum and coal products manufacturing
industry;
(E) the chemical manufacturing industry;
(F) the glass and glass product manufacturing
industry;
(G) the iron and steel mills and ferroalloy manufacturing
industry;
(H) the primary aluminum production industry;
(I) the foundries industry; and
(J) United States agriculture.
(3) TRANSPORTATION ENERGY EFFICIENCY- The goal of the transportation
energy efficiency program shall be to develop, in partnership with industry,
technologies that will enable the achievement--
(A) by 2010, passenger automobiles with a fuel economy of 80 miles
per gallon;
(B) by 2010, light trucks (classes 1 and 2a) with a fuel economy
of 60 miles per gallon;
(C) by 2010, medium trucks and buses (classes 2b through 6 and
class 8 transit buses) with a fuel economy, in ton-miles per gallon, that
is three times that of year 2000 equivalent vehicles;
(D) by 2010, heavy trucks (classes 7 and 8) with a fuel economy,
in ton-miles per gallon, that is two times that of year 2000 equivalent
vehicles; and
(E) by 2015, the production of fuel-cell powered passenger
vehicles with a fuel economy of 110 miles per gallon.
(4) ENERGY EFFICIENT DISTRIBUTED GENERATION- The goals of the energy
efficient on-site generation program shall be to help remove environmental
and regulatory barriers to on-site, or distributed, generation and combined
heat and power by developing technologies by 2015 that achieve--
(A) electricity generating efficiencies greater than 40 percent
for on-site generation technologies based upon natural gas, including fuel
cells, microturbines, reciprocating engines and industrial gas
turbines;
(B) combined heat and power total (electric and thermal)
efficiencies of more than 85 percent;
(C) fuel flexibility to include hydrogen, biofuels and natural
gas;
(D) near zero emissions of pollutants that form smog and acid
rain;
(E) reduction of carbon dioxide emissions by at least 40
percent;
(F) packaged system integration at end user facilities providing
complete services in heating, cooling, electricity and air quality;
and
(G) increased reliability for the consumer and greater stability
for the national electricity grid.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary for carrying out research, development,
demonstration, and technology deployment activities under this
subtitle--
(1) $700,000,000 for fiscal year 2003;
(2) $784,000,000 for fiscal year 2004;
(3) $878,000,000 for fiscal year 2005; and
(4) $983,000,000 for fiscal year 2006.
(d) LIMITATION ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (c) may be used for the following programs of the
Department--
(1) Weatherization Assistance Program;
(2) State Energy Program; or
(3) Federal Energy Management Program.
SEC. 1212. ENERGY EFFICIENCY SCIENCE INITIATIVE.
(a) ESTABLISHMENT AND AUTHORIZATION OF APPROPRIATIONS- From amounts
authorized under section 1211(c), there are authorized to be appropriated not
more than $50,000,000 in any fiscal year, for an Energy Efficiency Science
Initiative to be managed by the Assistant Secretary in the Department with
responsibility for energy conservation under section 203(a)(9) of the
Department of Energy Organization Act (42 U.S.C. 7133(a)(9)), in consultation
with the Director of the Office of Science, for grants to be competitively
awarded and subject to peer review for research relating to energy
efficiency.
(b) REPORT- The Secretary of Energy shall submit to the Committee on
Science and the Committee on Appropriations of the United States House of
Representatives, and to the Committee on Energy and Natural Resources and the
Committee on Appropriations of the United States Senate, an annual report on
the activities of the Energy Efficiency Science Initiative, including a
description of the process used to award the funds and an explanation of how
the research relates to energy efficiency.
SEC. 1213. NEXT GENERATION LIGHTING INITIATIVE.
(a) ESTABLISHMENT- There is established in the Department a Next
Generation Lighting Initiative to research, develop, and conduct demonstration
activities on advanced solid-state lighting technologies based on white light
emitting diodes.
(1) IN GENERAL- The objectives of the initiative shall be to
develop, by 2011, advanced solid-state lighting technologies based on white
light emitting diodes that, compared to incandescent and fluorescent
lighting technologies, are--
(B) more energy-efficient; and
(2) INORGANIC WHITE LIGHT EMITTING DIODE- The objective of the
initiative with respect to inorganic white light emitting diodes shall be to
develop an inorganic white light emitting diode that has an efficiency of
160 lumens per watt and a 10-year lifetime.
(3) ORGANIC WHITE LIGHT EMITTING DIODE- The objective of the
initiative with respect to organic white light emitting diodes shall be to
develop an organic white light emitting diode with an efficiency of 100
lumens per watt with a 5-year lifetime that--
(A) illuminates over a full color spectrum;
(B) covers large areas over flexible surfaces; and
(C) does not contain harmful pollutants typical of fluorescent
lamps such as mercury.
(1) IN GENERAL- The Secretary shall initiate and manage basic and
manufacturing-related research on advanced solid-state lighting technologies
based on white light emitting diodes for the initiative, in cooperation with
the Next Generation Lighting Initiative Consortium.
(2) COMPOSITION- The consortium shall be composed of firms, national
laboratories, and other entities so that the consortium is representative of
the United States solid-state lighting research, development, and
manufacturing expertise as a whole.
(3) FUNDING- The consortium shall be funded by--
(A) participation fees; and
(B) grants provided under subsection (e)(1).
(4) ELIGIBILITY- To be eligible to receive a grant under subsection
(e)(1), the consortium shall--
(A) enter into a consortium participation agreement
that--
(i) is agreed to by all participants; and
(ii) describes the responsibilities of participants,
participation fees, and the scope of research activities;
and
(B) develop an annual program plan.
(5) INTELLECTUAL PROPERTY- Participants in the consortium shall have
royalty-free nonexclusive rights to use intellectual property derived from
consortium research conducted under subsection (e)(1).
(1) IN GENERAL- Not later than 90 days after the establishment of
the consortium, the Secretary shall establish and appoint the members of a
planning board, to be known as the `Next Generation Lighting Initiative
Planning Board', to assist the Secretary in carrying out this
section.
(2) COMPOSITION- The planning board shall be composed
of--
(A) four members from universities, national laboratories, and
other individuals with expertise in advanced solid-state lighting and
technologies based on white light emitting diodes; and
(B) three members from a list of not less than six nominees from
industry submitted by the consortium.
(A) IN GENERAL- Not later than 90 days after the date on which the
Secretary appoints members to the planning board, the planning board shall
complete a study on strategies for the development and implementation of
advanced solid-state lighting technologies based on white light emitting
diodes.
(B) REQUIREMENTS- The study shall develop a comprehensive strategy
to implement, through the initiative, the use of white light emitting
diodes to increase energy efficiency and enhance United States
competitiveness.
(C) IMPLEMENTATION- As soon as practicable after the study is
submitted to the Secretary, the Secretary shall implement the initiative
in accordance with the recommendations of the planning
board.
(4) TERMINATION- The planning board shall terminate upon completion
of the study under paragraph (3).
(1) FUNDAMENTAL RESEARCH- The Secretary, through the consortium,
shall make grants to conduct basic and manufacturing-related research
related to advanced solid-state lighting technologies based on white light
emitting diode technologies.
(2) TECHNOLOGY DEVELOPMENT AND DEMONSTRATION- The Secretary shall
enter into grants, contracts, and cooperative agreements to conduct or
promote technology research, development, or demonstration activities. In
providing funding under this paragraph, the Secretary shall give preference
to participants in the consortium.
(3) CONTINUING ASSESSMENT- The consortium, in collaboration with the
Secretary, shall formulate annual operating and performance objectives,
develop technology roadmaps, and recommend research and development
priorities for the initiative. The Secretary may also establish or utilize
advisory committees, or enter into appropriate arrangements with the
National Academy of Sciences, to conduct periodic reviews of the initiative.
The Secretary shall consider the results of such assessment and review
activities in making funding decisions under paragraphs (1) and (2) of this
subsection.
(4) TECHNICAL ASSISTANCE- The National Laboratories shall cooperate
with and provide technical assistance to persons carrying out projects under
the initiative.
(A) IN GENERAL- The Secretary shall retain an independent,
commercial auditor to determine the extent to which funds made available
under this section have been expended in a manner that is consistent with
the objectives under subsection (b) and, in the case of funds made
available to the consortium, the annual program plan of the consortium
under subsection (c)(4)(B).
(B) REPORTS- The auditor shall submit to Congress, the Secretary,
and the Comptroller General of the United States an annual report
containing the results of the audit.
(6) APPLICABLE LAW- Grants, contracts, and cooperative agreements
under this section shall not be subject to the Federal Acquisition
Regulation.
(f) PROTECTION OF INFORMATION- Information obtained by the Federal
Government on a confidential basis under this section shall be considered to
constitute trade secrets and commercial or financial information obtained from
a person and privileged or confidential under section 552(b)(4) of title 5,
United States Code.
(g) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts authorized
under section 1211(c), there are authorized to be appropriated for activities
under this section $50,000,000 for each of fiscal years 2003 through
2011.
(h) DEFINITIONS- In this section:
(1) ADVANCED SOLID-STATE LIGHTING- The term `advanced solid-state
lighting' means a semiconducting device package and delivery system that
produces white light using externally applied voltage.
(2) CONSORTIUM- The term `consortium' means the Next Generation
Lighting Initiative Consortium under subsection (c).
(3) INITIATIVE- The term `initiative' means the Next Generation
Lighting Initiative established under subsection (a).
(4) INORGANIC WHITE LIGHT EMITTING DIODE- The term `inorganic white
light emitting diode' means an inorganic semiconducting package that
produces white light using externally applied voltage.
(5) ORGANIC WHITE LIGHT EMITTING DIODE- The term `organic white
light emitting diode' means an organic semiconducting compound that produces
white light using externally applied voltage.
(6) WHITE LIGHT EMITTING DIODE- The term `white light emitting
diode' means--
(A) an inorganic white light emitting diode; or
(B) an organic white light emitting diode.
SEC. 1214. RAILROAD EFFICIENCY.
(a) ESTABLISHMENT- The Secretary shall, in cooperation with the
Secretaries of Transportation and Defense, and the Administrator of the
Environmental Protection Agency, establish a public-private research
partnership involving the Federal Government, railroad carriers, locomotive
manufacturers, and the Association of American Railroads. The goal of the
initiative shall include developing and demonstrating locomotive technologies
that increase fuel economy, reduce emissions, improve safety, and lower
costs.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out the requirements of this section $60,000,000 for
fiscal year 2003 and $70,000,000 for fiscal year 2004.
SEC. 1215. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive research, development,
demonstration and deployment program to improve energy efficiency of high
power density facilities, including data centers, server farms, and
telecommunications facilities. Such program shall consider technologies that
provide significant improvement in thermal controls, metering, load
management, peak load reduction, or the efficient cooling of
electronics.
SEC. 1216. RESEARCH REGARDING PRECIOUS METAL CATALYSIS.
The Secretary of Energy may, for the purpose of developing improved
industrial and automotive catalysts, carry out research in the use of precious
metals (excluding platinum, palladium, and rhodium) in catalysis directly,
through national laboratories, or through grants to or cooperative agreements
or contracts with public or nonprofit entities. There are authorized to be
appropriated to carry out this section such sums as are necessary for fiscal
years 2003 through 2006.
Subtitle B--Renewable Energy
SEC. 1221. ENHANCED RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.
(a) PROGRAM DIRECTION- The Secretary shall conduct balanced energy
research, development, demonstration, and technology deployment programs to
enhance the use of renewable energy.
(1) WIND POWER- The goals of the wind power program shall be to
develop, in partnership with industry, a variety of advanced wind turbine
designs and manufacturing technologies that are cost-competitive with
fossil-fuel generated electricity, with a focus on developing advanced low
wind speed technologies that, by 2007, will enable the expanding utilization
of widespread class 3 and 4 winds.
(2) PHOTOVOLTAICS- The goal of the photovoltaic program shall be to
develop, in partnership with industry, total photovoltaic systems with
installed costs of $4,000 per peak kilowatt by 2005 and $2,000 per peak
kilowatt by 2015.
(3) SOLAR THERMAL ELECTRIC SYSTEMS- The goal of the solar thermal
electric systems program shall be to develop, in partnership with industry,
solar power technologies (including baseload solar power) that are
competitive with fossil-fuel generated electricity by 2015, by combining
high-efficiency and high-temperature receivers with advanced thermal storage
and power cycles.
(4) BIOMASS-BASED POWER SYSTEMS- The goal of the biomass program
shall be to develop, in partnership with industry, integrated
power-generating systems, advanced conversion, and feedstock technologies
capable of producing electric power that is cost-competitive with
fossil-fuel generated electricity by 2010, together with the production of
fuels, chemicals, and other products under paragraph (6).
(5) GEOTHERMAL ENERGY- The goal of the geothermal program shall be
to develop, in partnership with industry, technologies and processes based
on advanced hydrothermal systems and advanced heat and power systems,
including geothermal heat pump technology, with a specific focus
on--
(A) improving exploration and characterization technology to
increase the probability of drilling successful wells from 20 percent to
40 percent by 2006;
(B) reducing the cost of drilling by 2008 to an average cost of
$150 per foot; and
(C) developing enhanced geothermal systems technology with the
potential to double the useable geothermal resource base.
(6) BIOFUELS- The goal of the biofuels program shall be to develop,
in partnership with industry--
(A) advanced biochemical and thermochemical conversion
technologies capable of making liquid and gaseous fuels from cellulosic
feedstocks that are price-competitive with gasoline or diesel in either
internal combustion engines or fuel cell vehicles by 2010;
and
(B) advanced biotechnology processes capable of making biofuels,
biobased polymers, and chemicals, with particular emphasis on the
development of biorefineries that use enzyme based processing
systems.
For purposes of this paragraph, the term `cellulosic feedstock'
means any portion of a food crop not normally used in food production or any
nonfood crop grown for the purpose of producing biomass
feedstock.
(7) HYDROGEN-BASED ENERGY SYSTEMS- The goals of the hydrogen program
shall be to support research and development on technologies for production,
storage, and use of hydrogen, including fuel cells and, specifically,
fuel-cell vehicle development activities under section 1211.
(8) HYDROPOWER- The goal of the hydropower program shall be to
develop, in partnership with industry, a new generation of turbine
technologies that are less damaging to fish and aquatic
ecosystems.
(9) ELECTRIC ENERGY SYSTEMS AND STORAGE- The goals of the electric
energy and storage program shall be to develop, in partnership with
industry--
(A) generators and transmission, distribution, and storage systems
that combine high capacity with high efficiency;
(B) technologies to interconnect distributed energy resources with
electric power systems, comply with any national interconnection
standards, have a minimum 10-year useful life;
(C) advanced technologies to increase the average efficiency of
electric transmission facilities in rural and remote areas, giving
priority for demonstrations to advanced transmission technologies that are
being or have been field tested;
(D) the use of new transmission technologies, including flexible
alternating current transmission systems, composite conductor materials,
advanced protection devices, controllers, and other cost-effective methods
and technologies;
(E) the use of superconducting materials in power delivery
equipment such as transmission and distribution cables, transformers, and
generators;
(F) energy management technologies for enterprises with aggregated
loads and distributed generation, such as power parks;
(G) economic and system models to measure the costs and benefits
of improved system performance;
(H) hybrid distributed energy systems to optimize two or more
distributed or on-site generation technologies; and
(I) real-time transmission and distribution system control
technologies that provide for continual exchange of information between
generation, transmission, distribution, and end-user
facilities.
(c) SPECIAL PROJECTS- In carrying out this section, the Secretary
shall demonstrate--
(1) the use of advanced wind power technology, biomass, geothermal
energy systems, and other renewable energy technologies to assist in
delivering electricity to rural and remote locations;
(2) the combined use of wind power and coal gasification
technologies; and
(3) the use of high temperature superconducting technology in
projects to demonstrate the development of superconductors that enhance the
reliability, operational flexibility, or power-carrying capability of
electric transmission systems or increase the electrical or operational
efficiency of electric energy generation, transmission, distribution and
storage systems.
(d) FINANCIAL ASSISTANCE TO RURAL AREAS- In carrying out special
projects under subsection (c), the Secretary may provide financial assistance
to rural electric cooperatives and other rural entities.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary for carrying out research, development,
demonstration, and technology deployment activities under this
subtitle--
(1) $500,000,000 for fiscal year 2003;
(2) $595,000,000 for fiscal year 2004;
(3) $683,000,000 for fiscal year 2005; and
(4) $733,000,000 for fiscal year 2006, of which $100,000,000 may be
allocated to meet the goals of subsection (b)(1).
SEC. 1222. BIOENERGY PROGRAMS.
(a) PROGRAM DIRECTION- The Secretary shall carry out research,
development, demonstration, and technology development activities related to
bioenergy, including programs under paragraphs (4) and (6) of section
1221(b).
(b) AUTHORIZATION OF APPROPRIATIONS-
(1) BIOPOWER ENERGY SYSTEMS- From amounts authorized under section
1221(e), there are authorized to be appropriated to the Secretary for
biopower energy systems--
(A) $60,300,000 for fiscal year 2003;
(B) $69,300,000 for fiscal year 2004;
(C) $79,600,000 for fiscal year 2005; and
(D) $86,250,000 for fiscal year 2006.
(2) BIOFUELS ENERGY SYSTEMS- From amounts authorized under section
1221(e), there are authorized to be appropriated to the Secretary for
biofuels energy systems--
(A) $57,500,000 for fiscal year 2003;
(B) $66,125,000 for fiscal year 2004;
(C) $76,000,000 for fiscal year 2005; and
(D) $81,400,000 for fiscal year 2006.
(3) INTEGRATED BIOENERGY RESEARCH AND DEVELOPMENT- The Secretary may
use funds authorized under paragraph (1) or (2) for programs, projects, or
activities that integrate applications for both biopower and biofuels,
including cross-cutting research and development in feedstocks and economic
analysis.
SEC. 1223. HYDROGEN RESEARCH AND DEVELOPMENT.
(a) SHORT TITLE- This section may be cited as the `Hydrogen Future Act
of 2002'.
(b) PURPOSES- Section 102(b) of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12401(b)) is
amended by striking paragraphs (2) and (3) and inserting the
following:
`(2) to direct the Secretary to develop a program of technology
assessment, information transfer, and education in which Federal agencies,
members of the transportation, energy, and other industries, and other
entities may participate;
`(3) to develop methods of hydrogen production that minimize
production of greenhouse gases, including developing--
`(A) efficient production from nonrenewable resources;
and
`(B) cost-effective production from renewable resources such as
biomass, geothermal, wind, and solar energy; and
`(4) to foster the use of hydrogen as a major energy source,
including developing the use of hydrogen in--
`(A) isolated villages, islands, and communities in which other
energy sources are not available or are very expensive; and
`(B) foreign economic development, to avoid environmental damage
from increased fossil fuel use.'.
(c) REPORT TO CONGRESS- Section 103 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12402) is
amended--
(1) in subsection (a), by striking `January 1, 1999,' and inserting
`1 year after the date of enactment of the Hydrogen Future Act of 2002, and
biennially thereafter,';
(2) in subsection (b), by striking paragraphs (1) and (2) and
inserting the following:
`(1) an analysis of hydrogen-related activities throughout the
United States Government to identify productive areas for increased
intragovernmental collaboration;
`(2) recommendations of the Hydrogen Technical Advisory Panel
established by section 108 for any improvements in the program that are
needed, including recommendations for additional legislation; and
`(3) to the extent practicable, an analysis of State and local
hydrogen-related activities.'; and
(3) by adding at the end the following:
`(c) COORDINATION PLAN- The report under subsection (a) shall be based
on a comprehensive coordination plan for hydrogen energy prepared by the
Secretary in consultation with other Federal agencies.'.
(d) HYDROGEN RESEARCH AND DEVELOPMENT- Section 104 of the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 (42
U.S.C. 12403) is amended--
(1) in subsection (b)(1), by striking `marketplace;' and inserting
`marketplace, including foreign markets, particularly where an energy
infrastructure is not well developed;';
(2) in subsection (e), by striking `this chapter' and inserting
`this Act';
(3) by striking subsection (g) and inserting the
following:
`(1) INABILITY TO FUND ENTIRE COST- The Secretary shall not consider
a proposal submitted by a person from industry unless the proposal contains
a certification that--
`(A) reasonable efforts to obtain non-Federal funding in the
amount necessary to pay 100 percent of the cost of the project have been
made; and
`(B) non-Federal funding in that amount could not reasonably be
obtained.
`(A) IN GENERAL- The Secretary shall require a commitment from
non-Federal sources of at least 25 percent of the cost of the
project.
`(B) REDUCTION OR ELIMINATION- The Secretary may reduce or
eliminate the cost-sharing requirement under subparagraph (A) for the
proposed research and development project, including for technical
analyses, economic analyses, outreach activities, and educational
programs, if the Secretary determines that reduction or elimination is
necessary to achieve the objectives of this Act.';
(4) in subsection (i), by striking `this chapter' and inserting
`this Act'.
(e) DEMONSTRATIONS- Section 105 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12404) is
amended by striking subsection (c) and inserting the following:
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
shall require a commitment from non-Federal sources of at least 50 percent
of the costs directly relating to a demonstration project under this
section.
`(2) REDUCTION- The Secretary may reduce the non-Federal requirement
under paragraph (1) if the Secretary determines that the reduction is
appropriate considering the technological risks involved in the project and
is necessary to meet the objectives of this Act.'.
(f) TECHNOLOGY TRANSFER- Section 106 of the Spark M. Matsunaga
Hydrogen Research, Development, and Demonstration Act of 1990 (42 U.S.C.
12405) is amended--
(A) in the first sentence--
(i) by striking `The Secretary shall conduct a program designed
to accelerate wider application' and inserting the
following:
`(1) IN GENERAL- The Secretary shall conduct a program designed
to--
`(A) accelerate wider application'; and
(ii) by striking `private sector' and inserting `private sector;
and
`(B) accelerate wider application of hydrogen technologies in
foreign countries to increase the global market for the technologies and
foster global economic development without harmful environmental
effects.'; and
(B) in the second sentence, by striking `The Secretary' and
inserting the following:
`(2) ADVICE AND ASSISTANCE- The Secretary'; and
(A) in paragraph (2), by redesignating subparagraphs (A) through
(D) as clauses (i) through (iv), respectively, and indenting
appropriately;
(B) by redesignating paragraphs (1) and (2) as subparagraphs (A)
and (B), respectively, and indenting appropriately;
(C) by striking `The Secretary, in' and inserting the
following:
`(1) IN GENERAL- The Secretary, in';
(D) by striking `The information' and inserting the
following:
`(2) ACTIVITIES- The information'; and
(E) in paragraph (1) (as designated by subparagraph
(C))--
(i) in subparagraph (A) (as redesignated by subparagraph (B)),
by striking `an inventory' and inserting `an update of the inventory';
and
(ii) in subparagraph (B) (as redesignated by subparagraph (B)),
by striking `develop' and all that follows through `to improve' and
inserting `develop with the National Aeronautics and Space
Administration, the Department of Energy, other Federal agencies as
appropriate, and industry, an information exchange program to
improve'.
(g) Technical Panel Review-
(1) IN GENERAL- Section 108 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12407) is
amended--
(i) by striking `(b) MEMBERSHIP- The technical panel shall be
appointed' and inserting the following:
`(1) IN GENERAL- The technical panel shall be comprised of not fewer
than 9 nor more than 15 members appointed';
(ii) by striking the second sentence and inserting the
following:
`(A) IN GENERAL- The term of a member of the technical panel shall
be not more than 3 years.
`(B) STAGGERED TERMS- The Secretary may appoint members of the
technical panel in a manner that allows the terms of the members serving
at any time to expire at spaced intervals so as to ensure continuity in
the functioning of the technical panel.
`(C) REAPPOINTMENT- A member of the technical panel whose term
expires may be reappointed.'; and
(iii) by striking `The technical panel shall have a chairman,'
and inserting the following:
`(3) CHAIRPERSON- The technical panel shall have a chairperson,';
and
(i) in the matter preceding paragraph (1), by striking `the
following items';
(ii) in paragraph (1), by striking `and' at the
end;
(iii) in paragraph (2), by striking the period at the end and
inserting `; and'; and
(iv) by adding at the end the following:
`(3) the plan developed by the interagency task force under section
202(b) of the Hydrogen Future Act of 1996.'.
(2) NEW APPOINTMENTS- Not later than 180 days after the date of
enactment of this Act, the Secretary--
(A) shall review the membership composition of the Hydrogen
Technical Advisory Panel; and
(B) may appoint new members consistent with the amendments made by
subsection (a).
(h) AUTHORIZATION OF APPROPRIATIONS- Section 109 of the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 (42
U.S.C. 12408) is amended--
(1) in paragraph (8), by striking `and';
(2) in paragraph (9), by striking the period and inserting a
semicolon; and
(3) by adding at the end the following:
`(10) $65,000,000 for fiscal year 2003;
`(11) $70,000,000 for fiscal year 2004;
`(12) $75,000,000 for fiscal year 2005; and
`(13) $80,000,000 for fiscal year 2006.'.
(1) INTEGRATION OF FUEL CELLS WITH HYDROGEN PRODUCTION SYSTEMS-
Section 201 of the Hydrogen Future Act of 1996 is amended--
(A) in subsection (a) by striking `(a) Not later than 180 days
after the date of enactment of this section, and subject' and inserting
`(a) IN GENERAL- Subject';
(B) by striking `with--' and all that follows and inserting `into
Federal, State, and local government facilities for stationary and
transportation applications.';
(C) in subsection (b), by striking `gas is' and inserting
`basis';
(D) in subsection (c)(2), by striking `systems described in
subsections (a)(1) and (a)(2)' and inserting `projects proposed';
and
(E) by striking subsection (d) and inserting the
following:
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
shall require a commitment from non-Federal sources of at least 50 percent
of the costs directly relating to a demonstration project under this
section.
`(2) REDUCTION- The Secretary may reduce the non-Federal requirement
under paragraph (1) if the Secretary determines that the reduction is
appropriate considering the technological risks involved in the project and
is necessary to meet the objectives of this Act.'.
(2) COOPERATIVE AND COST-SHARING AGREEMENTS; INTEGRATION OF
TECHNICAL INFORMATION- Title II of the Hydrogen Future Act of 1996 (42
U.S.C. 12403 note; Public Law 104-271) is amended by striking section 202
and inserting the following:
`SEC. 202. INTERAGENCY TASK FORCE.
`(a) ESTABLISHMENT- Not later than 120 days after the date of
enactment of this section, the Secretary shall establish an interagency task
force led by a Deputy Assistant Secretary of the Department of Energy and
comprised of representatives of--
`(1) the Office of Science and Technology Policy;
`(2) the Department of Transportation;
`(3) the Department of Defense;
`(4) the Department of Commerce (including the National Institute
for Standards and Technology);
`(5) the Environmental Protection Agency;
`(6) the National Aeronautics and Space Administration;
and
`(7) other agencies as appropriate.
`(1) IN GENERAL- The task force shall develop a plan for carrying
out this title.
`(2) FOCUS OF PLAN- The plan shall focus on development and
demonstration of integrated systems and components for--
`(A) hydrogen production, storage, and use in Federal, State, and
local government buildings and vehicles;
`(B) hydrogen-based infrastructure for buses and other fleet
transportation systems that include zero-emission vehicles;
and
`(C) hydrogen-based distributed power generation, including the
generation of combined heat, power, and hydrogen.
`SEC. 203. COOPERATIVE AND COST-SHARING AGREEMENTS.
`The Secretary shall enter into cooperative and cost-sharing
agreements with Federal, State, and local agencies for participation by the
agencies in demonstrations at facilities administered by the agencies, with
the aim of integrating high efficiency hydrogen systems using fuel cells into
the facilities to provide immediate benefits and promote a smooth transition
to hydrogen as an energy source.
`SEC. 204. INTEGRATION AND DISSEMINATION OF TECHNICAL
INFORMATION.
`(1) integrate all the technical information that becomes available
as a result of development and demonstration projects under this
title;
`(2) make the information available to all Federal and State
agencies for dissemination to all interested persons; and
`(3) foster the exchange of generic, nonproprietary information and
technology developed under this title among industry, academia, and Federal,
State, and local governments, to help the United States economy attain the
economic benefits of the information and technology.
`SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated, for activities under this
title--
`(1) $25,000,000 for fiscal year 2003;
`(2) $30,000,000 for fiscal year 2004;
`(3) $35,000,000 for fiscal year 2005; and
`(4) $40,000,000 for fiscal year 2006.'.
Subtitle C--Fossil Energy
SEC. 1231. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT.
(a) PROGRAM DIRECTION- The Secretary shall conduct a balanced energy
research, development, demonstration, and technology deployment program to
enhance fossil energy.
(1) CORE FOSSIL RESEARCH AND DEVELOPMENT- The goals of the core
fossil research and development program shall be to reduce emissions from
fossil fuel use by developing technologies, including precombustion
technologies, by 2015 with the capability of realizing--
(A) electricity generating efficiencies of 60 percent for coal and
75 percent for natural gas;
(B) combined heat and power thermal efficiencies of more than 85
percent;
(C) fuels utilization efficiency of 75 percent for the production
of liquid transportation fuels from coal;
(D) near zero emissions of mercury and of emissions that form fine
particles, smog, and acid rain;
(E) reduction of carbon dioxide emissions by at least 40 percent
through efficiency improvements and 100 percent with sequestration;
and
(F) improved reliability, efficiency, reductions of air pollutant
emissions, or reductions in solid waste disposal
requirements.
(2) OFFSHORE OIL AND NATURAL GAS RESOURCES- The goal of the offshore
oil and natural gas resources program shall be to develop technologies
to--
(A) extract methane hydrates in coastal waters of the United
States, and
(B) develop natural gas and oil reserves in the ultra-deepwater of
the Central and Western Gulf of Mexico.
(3) ONSHORE OIL AND NATURAL GAS RESOURCES- The goal of the onshore
oil and natural gas resources program shall be to advance the science and
technology available to domestic onshore petroleum producers, particularly
independent operators, through--
(A) advances in technology for exploration and production of
domestic petroleum resources, particularly those not accessible with
current technology;
(B) improvement in the ability to extract hydrocarbons from known
reservoirs and classes of reservoirs; and
(C) development of technologies and practices that reduce the
threat to the environment from petroleum exploration and production and
decrease the cost of effective environmental compliance.
(4) TRANSPORTATION FUELS- The goals of the transportation fuels
program shall be to increase the price elasticity of oil supply and demand
by focusing research on--
(A) reducing the cost of producing transportation fuels from coal
and natural gas; and
(B) indirect liquefaction of coal and biomass.
(c) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to the
Secretary for carrying out research, development, demonstration, and
technology deployment activities under this section--
(A) $485,000,000 for fiscal year 2003;
(B) $508,000,000 for fiscal year 2004;
(C) $532,000,000 for fiscal year 2005; and
(D) $558,000,000 for fiscal year 2006.
(2) LIMITS ON USE OF FUNDS- None of the funds authorized in
paragraph (1) may be used for--
(A) fossil energy environmental restoration;
(B) import/export authorization;
(C) program direction; or
(D) general plant projects.
(3) COAL-BASED PROJECTS- The coal-based projects funded under this
section shall be consistent with the goals in subsection (b). The program
shall emphasize carbon capture and sequestration technologies and
gasification technologies, including gasification combined cycle,
gasification fuel cells, gasification co-production, hybrid
gasification/combustion, or other technology with the potential to address
the goals in subparagraphs (D) or (E) of subsection (b)(1).
SEC. 1232. POWER PLANT IMPROVEMENT INITIATIVE.
(a) PROGRAM DIRECTION- The Secretary shall conduct a balanced energy
research, development, demonstration, and technology deployment program to
demonstrate commercial applications of advanced lignite and coal-based
technologies applicable to new or existing power plants (including
co-production plants) that advance the efficiency, environmental performance,
and cost-competitiveness substantially beyond technologies that are in
operation or have been demonstrated by the date of enactment of this
subtitle.
(b) Technical Milestones-
(1) IN GENERAL- The Secretary shall set technical milestones
specifying efficiency and emissions levels that projects shall be designed
to achieve. The milestones shall become more restrictive over the life of
the program.
(2) 2010 efficiency milestones- The milestones shall be designed to
achieve by 2010 interim thermal efficiency of--
(A) forty-five percent for coal of more than 9,000
Btu;
(B) forty-four percent for coal of 7,000 to 9,000 Btu;
and
(C) forty-two percent for coal of less than 7,000
Btu.
(3) 2020 efficiency milestones- The milestones shall be designed to
achieve by 2020 thermal efficiency of--
(A) sixty percent for coal of more than 9,000 Btu;
(B) fifty-nine percent for coal of 7,000 to 9,000 Btu;
and
(C) fifty-seven percent for coal of less than 7,000
Btu.
(4) EMISSIONS MILESTONES- The milestones shall include near zero
emissions of mercury and greenhouse gases and of emissions that form fine
particles, smog, and acid rain.
(5) REGIONAL AND QUALITY DIFFERENCES- The Secretary may consider
regional and quality differences in developing the efficiency
milestones.
(c) PROJECT CRITERIA- The demonstration activities proposed to be
conducted at a new or existing coal-based electric generation unit having a
nameplate rating of not less than 100 megawatts, excluding a co-production
plant, shall include at least one of the following--
(1) a means of recycling or reusing a significant portion of coal
combustion wastes produced by coal-based generating units, excluding
practices that are commercially available by the date of enactment of this
subtitle;
(2) a means of capture and sequestering emissions, including
greenhouse gases, in a manner that is more effective and substantially below
the cost of technologies that are in operation or that have been
demonstrated by the date of enactment of this subtitle;
(3) a means of controlling sulfur dioxide and nitrogen oxide or
mercury in a manner that improves environmental performance beyond
technologies that are in operation or that have been demonstrated by the
date of enactment of this subtitle--
(A) in the case of an existing unit, achieve an overall thermal
design efficiency improvement compared to the efficiency of the unit as
operated, of not less than--
(i) 7 percent for coal of more than 9,000 Btu;
(ii) 6 percent for coal of 7,000 to 9,000 Btu;
or
(iii) 4 percent for coal of less than 7,000 Btu;
or
(B) in the case of a new unit, achieve the efficiency milestones
set for in subsection (b) compared to the efficiency of a typical unit as
operated on the date of enactment of this subtitle, before any retrofit,
repowering, replacement, or installation.
(d) STUDY- The Secretary, in consultation with the Administrator of
the Environmental Protection Agency, the Secretary of the Interior, and
interested entities (including coal producers, industries using coal,
organizations to promote coal or advanced coal technologies, environmental
organizations, and organizations representing workers), shall conduct an
assessment that identifies performance criteria that would be necessary for
coal-based technologies to meet, to enable future reliance on coal in an
environmentally sustainable manner for electricity generation, use as a
chemical feedstock, and use as a transportation fuel.
(e) Authorization of Appropriations-
(1) IN GENERAL- There are authorized to be appropriated to the
Secretary for carrying out activities under this section $200,000,000 for
each of fiscal years 2003 through 2011.
(2) LIMITATION ON FUNDING OF PROJECTS- Eighty percent of the funding
under this section shall be limited to--
(A) carbon capture and sequestration technologies;
(B) gasification technologies, including gasification combined
cycle, gasification fuel cells, gasification co-production, or hybrid
gasification/combustion; or
(C) other technology either by itself or in conjunction with other
technologies that has the potential to achieve near zero
emissions.
SEC. 1233. RESEARCH AND DEVELOPMENT FOR ADVANCED SAFE AND EFFICIENT COAL
MINING TECHNOLOGIES.
(a) ESTABLISHMENT- The Secretary of Energy shall establish a
cooperative research partnership involving appropriate Federal agencies, coal
producers, including associations, equipment manufacturers, universities with
mining engineering departments, and other relevant entities to--
(1) develop mining research priorities identified by the Mining
Industry of the Future Program and in the recommendations from relevant
reports of the National Academy of Sciences on mining
technologies;
(2) establish a process for conducting joint industry-Government
research and development; and
(3) expand mining research capabilities at institutions of higher
education.
(b) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to carry out
activities under this section, $12,000,000 in fiscal year 2003 and
$15,000,000 in fiscal year 2004.
(2) LIMIT ON USE OF FUNDS- Not less than 20 percent of any funds
appropriated in a given fiscal year under this subsection shall be dedicated
to research carried out at institutions of higher education.
SEC. 1234. ULTRA-DEEPWATER AND UNCONVENTIONAL RESOURCE EXPLORATION AND
PRODUCTION TECHNOLOGIES.
(a) DEFINITIONS- In this section:
(1) ADVISORY COMMITTEE- The term `Advisory Committee' means the
Ultra-Deepwater and Unconventional Resource Technology Advisory Committee
established under subsection (c).
(2) AWARD- The term `award' means a cooperative agreement, contract,
award or other types of agreement as appropriate.
(3) DEEPWATER- The term `deepwater' means a water depth that is
greater than 200 but less than 1,500 meters.
(4) ELIGIBLE AWARD RECIPIENT- The term `eligible award recipient'
includes--
(A) a research institution;
(B) an institution of higher education;
(D) a managing consortium formed among entities described in
subparagraphs (A) through (C).
(5) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
education' has the meaning given the term in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001).
(6) MANAGING CONSORTIUM- The term `managing consortium' means an
entity that--
(A) exists as of the date of enactment of this
section;
(B)(i) is an organization described in section 501(c)(3) of the
Internal Revenue Code of 1986; and
(ii) is exempt from taxation under section 501(a) of that
Code;
(C) is experienced in planning and managing programs in natural
gas or other petroleum exploration and production research, development,
and demonstration; and
(D) has demonstrated capabilities and experience in representing
the views and priorities of industry, institutions of higher education and
other research institutions in formulating comprehensive research and
development plans and programs.
(7) PROGRAM- The term `program' means the program of research,
development, and demonstration established under subsection
(b)(1)(A).
(8) ULTRA-DEEPWATER- The term `ultra-deepwater' means a water depth
that is equal to or greater than 1,500 meters.
(9) ULTRA-DEEPWATER ARCHITECTURE- The term `ultra-deepwater
architecture' means the integration of technologies to explore and produce
natural gas or petroleum products located at ultra-deepwater
depths.
(10) ULTRA-DEEPWATER RESOURCE- The term `ultra-deepwater resource'
means natural gas or any other petroleum resource (including methane
hydrate) located in an ultra-deepwater area.
(11) UNCONVENTIONAL RESOURCE- The term `unconventional resource'
means natural gas or any other petroleum resource located in a formation on
physically or economically inaccessible land currently available for lease
for purposes of natural gas or other petroleum exploration or
production.
(b) ULTRA-DEEPWATER AND UNCONVENTIONAL EXPLORATION AND PRODUCTION
PROGRAM-
(A) IN GENERAL- The Secretary shall establish a program of
research into, and development and demonstration of, ultra-deepwater
resource and unconventional resource exploration and production
technologies.
(B) LOCATION; IMPLEMENTATION- The program under this subsection
shall be carried out--
(i) in areas on the outer Continental Shelf that, as of the date
of enactment of this section, are available for leasing;
and
(ii) on unconventional resources.
(2) COMPONENTS- The program shall include one or more programs for
long-term research into--
(A) new deepwater ultra-deepwater resource and unconventional
resource exploration and production technologies; or
(B) environmental mitigation technologies for production of
ultra-deepwater resource and unconventional resource.
(1) ESTABLISHMENT- Not later than 30 days after the date of
enactment of this section, the Secretary shall establish an advisory
committee to be known as the `Ultra-Deepwater and Unconventional Resource
Technology Advisory Committee'.
(A) COMPOSITION- Subject to subparagraph (B), the advisory
committee shall be composed of seven members appointed by the Secretary
that--
(i) have extensive operational knowledge of and experience in
the natural gas and other petroleum exploration and production industry;
and
(ii) are not Federal employees or employees of contractors to a
Federal agency.
(B) EXPERTISE- Of the members of the advisory committee appointed
under subparagraph (A)--
(i) at least four members shall have extensive knowledge of
ultra-deepwater resource exploration and production
technologies;
(ii) at least three members shall have extensive knowledge of
unconventional resource exploration and production
technologies.
(3) DUTIES- The advisory committee shall advise the Secretary in the
implementation of this section.
(4) COMPENSATION- A member of the advisory committee shall serve
without compensation but shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with applicable provisions under
subchapter I of chapter 57 of title 5, United States Code.
(A) ULTRA-DEEPWATER RESOURCES-
(i) IN GENERAL- The Secretary shall make awards for research
into, and development and demonstration of, ultra-deepwater resource
exploration and production technologies--
(I) to maximize the value of the ultra-deepwater resources of
the United States;
(II) to increase the supply of ultra-deepwater resources by
lowering the cost and improving the efficiency of exploration and
production of such resources; and
(III) to improve safety and minimize negative environmental
impacts of that exploration and production.
(ii) ULTRA-DEEPWATER ARCHITECTURE- In furtherance of the
purposes described in clause (i), the Secretary shall, where
appropriate, solicit proposals from a managing consortium to develop and
demonstrate next-generation architecture for ultra-deepwater resource
production.
(B) UNCONVENTIONAL RESOURCES- The Secretary shall make
awards--
(i) to carry out research into, and development and
demonstration of, technologies to maximize the value of unconventional
resources; and
(ii) to develop technologies to
simultaneously--
(I) increase the supply of unconventional resources by
lowering the cost and improving the efficiency of exploration and
production of unconventional resources; and
(II) improve safety and minimize negative environmental
impacts of that exploration and production.
(2) CONDITIONS- An award made under this subsection shall be subject
to the following conditions:
(A) MULTIPLE ENTITIES- If an award recipient is composed of more
than one eligible organization, the recipient shall provide a signed
contract, agreed to by all eligible organizations comprising the award
recipient, that defines, in a manner that is consistent with all
applicable law in effect as of the date of the contract, all rights to
intellectual property for--
(i) technology in existence as of that date;
and
(ii) future inventions conceived and developed using funds
provided under the award.
(B) COMPONENTS OF APPLICATION- An application for an award for a
demonstration project shall describe with specificity any intended
commercial applications of the technology to be
demonstrated.
(C) COST SHARING- Non-Federal cost sharing shall be in accordance
with section 1403.
(1) IN GENERAL- The Secretary, and where appropriate, a managing
consortium under subsection (d)(1)(A)(ii), shall formulate annual operating
and performance objectives, develop multiyear technology roadmaps, and
establish research and development priorities for the funding of activities
under this section which will serve as guidelines for making awards
including cost-matching objectives.
(2) INDUSTRY INPUT- In carrying out this program, the Secretary
shall promote maximum industry input through the use of managing consortia
or other organizations in planning and executing the research areas and
conducting workshops or reviews to ensure that this program focuses on
industry problems and needs.
(1) IN GENERAL- The Secretary shall retain an independent,
commercial auditor to determine the extent to which funds authorized by this
section, provided through a managing consortium, are expended in a manner
consistent with the purposes of this section.
(2) REPORTS- The auditor retained under paragraph (1) shall submit
to the Secretary, and the Secretary shall transmit to the appropriate
congressional committees, an annual report that describes--
(A) the findings of the auditor under paragraph (1);
and
(B) a plan under which the Secretary may remedy any deficiencies
identified by the auditor.
(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
section.
(h) TERMINATION OF AUTHORITY- The authority provided by this section
shall terminate on September 30, 2009.
(i) SAVINGS PROVISION- Nothing in this section is intended to
displace, duplicate or diminish any previously authorized research activities
of the Department of Energy.
SEC. 1235. RESEARCH AND DEVELOPMENT FOR NEW NATURAL GAS TRANSPORTATION
TECHNOLOGIES.
The Secretary of Energy shall conduct a comprehensive 5-year program
for research, development and demonstration to improve the reliability,
efficiency, safety and integrity of the natural gas transportation and
distribution infrastructure and for distributed energy resources (including
microturbines, fuel cells, advanced engine-generators, gas turbines,
reciprocating engines, hybrid power generation systems, and all ancillary
equipment for dispatch, control and maintenance).
SEC. 1236. AUTHORIZATION OF APPROPRIATIONS FOR OFFICE OF ARCTIC
ENERGY.
There are authorized to be appropriated to the Secretary for the
Office of Arctic Energy under section 3197 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) such sums
as may be necessary, but not to exceed $25,000,000 for each of fiscal years
2003 through 2011.
SEC. 1237. CLEAN COAL TECHNOLOGY LOAN.
There is authorized to be appropriated not to exceed $125,000,000 to
the Secretary of Energy to provide a loan to the owner of the experimental
plant constructed under United States Department of Energy cooperative
agreement number DE-FC22-91PC99544 on such terms and conditions as the
Secretary determines, including interest rates and upfront payments.
Subtitle D--Nuclear Energy
SEC. 1241. ENHANCED NUCLEAR ENERGY RESEARCH AND DEVELOPMENT.
(a) PROGRAM DIRECTION- The Secretary shall conduct an energy research,
development, demonstration, and technology deployment program to enhance
nuclear energy.
(b) PROGRAM GOALS- The program shall--
(1) support research related to existing United States nuclear power
reactors to extend their lifetimes and increase their reliability while
optimizing their current operations for greater efficiencies;
(A) advanced proliferation-resistant and passively safe reactor
designs;
(B) new reactor designs with higher efficiency, lower cost, and
improved safety;
(C) in coordination with activities carried out under the
amendments made by section 1223, designs for a high temperature reactor
capable of producing large-scale quantities of hydrogen using
thermochemical processes;
(D) proliferation-resistant and high-burn-up nuclear
fuels;
(E) minimization of generation of radioactive
materials;
(F) improved nuclear waste management technologies;
and
(G) improved instrumentation science;
(3) attract new students and faculty to the nuclear sciences and
nuclear engineering and related fields (including health physics and nuclear
and radiochemistry) through--
(A) university-based fundamental research for existing faculty and
new junior faculty;
(B) support for the re-licensing of existing training reactors at
universities in conjunction with industry; and
(C) completing the conversion of existing training reactors with
proliferation-resistant fuels that are low enriched and to adapt those
reactors to new investigative uses;
(4) maintain a national capability and infrastructure to produce
medical isotopes and ensure a well trained cadre of nuclear medicine
specialists in partnership with industry;
(5) ensure that our nation has adequate capability to power future
satellite and space missions; and
(6) maintain, where appropriate through a prioritization process, a
balanced research infrastructure so that future research programs can use
these facilities.
(c) Authorization of Appropriations-
(1) CORE NUCLEAR RESEARCH PROGRAMS- There are authorized to be
appropriated to the Secretary for carrying out research, development,
demonstration, and technology deployment activities under subsection (b)(1)
through (3)--
(A) $100,000,000 for fiscal year 2003;
(B) $110,000,000 for fiscal year 2004;
(C) $120,000,000 for fiscal year 2005; and
(D) $130,000,000 for fiscal year 2006.
(2) SUPPORTING NUCLEAR ACTIVITIES- There are authorized to be
appropriated to the Secretary for carrying out activities under subsection
(b)(4) through (6), as well as nuclear facilities management and program
direction--
(A) $200,000,000 for fiscal year 2003;
(B) $202,000,000 for fiscal year 2004;
(C) $207,000,000 for fiscal year 2005; and
(D) $212,000,000 for fiscal year 2006.
SEC. 1242. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.
(a) ESTABLISHMENT- The Secretary shall support a program to maintain
the nation's human resource investment and infrastructure in the nuclear
sciences and engineering and related fields (including health physics and
nuclear and radiochemistry), consistent with departmental missions related to
civilian nuclear research and development.
(b) DUTIES- In carrying out the program under this section, the
Secretary shall--
(1) develop a graduate and undergraduate fellowship program to
attract new and talented students;
(2) assist universities in recruiting and retaining new faculty in
the nuclear sciences and engineering through a Junior Faculty Research
Initiation Grant Program;
(3) support fundamental nuclear sciences and engineering research
through the Nuclear Engineering Education Research Program;
(4) encourage collaborative nuclear research between industry,
national laboratories and universities through the Nuclear Energy Research
Initiative; and
(5) support communication and outreach related to nuclear science
and engineering.
(c) MAINTAINING UNIVERSITY RESEARCH AND TRAINING REACTORS AND
ASSOCIATED INFRASTRUCTURE- Activities under this section may include:
(1) Converting research reactors to low-enrichment fuels, upgrading
operational instrumentation, and sharing of reactors among
universities.
(2) Providing technical assistance, in collaboration with the United
States nuclear industry, in re-licensing and upgrading training reactors as
part of a student training program.
(3) Providing funding for reactor improvements as part of a focused
effort that emphasizes research, training, and education.
(d) UNIVERSITY-NATIONAL LABORATORY INTERACTIONS- The Secretary shall
develop--
(1) a sabbatical fellowship program for university professors to
spend extended periods of time at National Laboratories in the areas of
nuclear science and technology; and
(2) a visiting scientist program in which National Laboratory staff
can spend time in academic nuclear science and engineering departments. The
Secretary may provide for fellowships for students to spend time at National
Laboratories in the area of nuclear science with a member of the Laboratory
staff acting as a mentor.
(e) OPERATING AND MAINTENANCE COSTS- Funding for a research project
provided under this section may be used to offset a portion of the operating
and maintenance costs of a university research reactor used in the research
project, on a cost-shared basis with the university.
(f) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1241(c)(1), the following amounts are authorized for activities under
this section--
(1) $33,000,000 for fiscal year 2003;
(2) $37,900,000 for fiscal year 2004;
(3) $43,600,000 for fiscal year 2005; and
(4) $50,100,000 for fiscal year 2006.
SEC. 1243. NUCLEAR ENERGY RESEARCH INITIATIVE.
(a) ESTABLISHMENT- The Secretary shall support a Nuclear Energy
Research Initiative for grants for research relating to nuclear
energy.
(b) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1241(c), there are authorized to be appropriated to the Secretary for
activities under this section such sums as are necessary for each fiscal
year.
SEC. 1244. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.
(a) ESTABLISHMENT- The Secretary shall support a Nuclear Energy Plant
Optimization Program for grants to improve nuclear energy plant reliability,
availability, and productivity. Notwithstanding section 1403, the program
shall require industry cost-sharing of at least 50 percent and be subject to
annual review by the Nuclear Energy Research Advisory Committee of the
Department.
(b) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1241(c), there are authorized to be appropriated to the Secretary for
activities under this section such sums as are necessary for each fiscal
year.
SEC. 1245. NUCLEAR ENERGY TECHNOLOGY DEVELOPMENT PROGRAM.
(a) ESTABLISHMENT- The Secretary shall support a Nuclear Energy
Technology Development Program to develop a technology roadmap to design and
develop new nuclear energy powerplants in the United States.
(b) GENERATION IV REACTOR STUDY- The Secretary shall, as part of the
program under subsection (a), also conduct a study of Generation IV nuclear
energy systems, including development of a technology roadmap and performance
of research and development necessary to make an informed technical decision
regarding the most promising candidates for commercial deployment. The study
shall examine advanced proliferation-resistant and passively safe reactor
designs, new reactor designs with higher efficiency, lower cost and improved
safety, proliferation-resistant and high burn-up fuels, minimization of
generation of radioactive materials, improved nuclear waste management
technologies, and improved instrumentation science. Not later than December
31, 2002, the Secretary shall submit to Congress a report describing the
results of the study.
(c) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized to be
appropriated under section 1241(c), there are authorized to be appropriated to
the Secretary for activities under this section such sums as are necessary for
each fiscal year.
Subtitle E--Fundamental Energy Science
SEC. 1251. ENHANCED PROGRAMS IN FUNDAMENTAL ENERGY SCIENCE.
(a) PROGRAM DIRECTION- The Secretary, acting through the Office of
Science, shall--
(1) conduct a comprehensive program of fundamental research,
including research on chemical sciences, physics, materials sciences,
biological and environmental sciences, geosciences, engineering sciences,
plasma sciences, mathematics, and advanced scientific computing;
(2) maintain, upgrade and expand the scientific user facilities
maintained by the Office of Science and ensure that they are an integral
part of the departmental mission for exploring the frontiers of fundamental
science;
(3) maintain a leading-edge research capability in the
energy-related aspects of nanoscience and nanotechnology, advanced
scientific computing and genome research; and
(4) ensure that its fundamental science programs, where appropriate,
help inform the applied research and development programs of the
Department.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary for carrying out research, development,
demonstration, and technology deployment activities under this
subtitle--
(1) $3,785,000,000 for fiscal year 2003;
(2) $4,153,000,000 for fiscal year 2004;
(3) $4,586,000,000 for fiscal year 2005; and
(4) $5,000,000,000 for fiscal year 2006.
SEC. 1252. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.
(a) ESTABLISHMENT- The Secretary, acting through the Office of
Science, shall support a program of research and development in nanoscience
and nanoengineering consistent with the Department's statutory authorities
related to research and development. The program shall include efforts to
further the understanding of the chemistry, physics, materials science and
engineering of phenomena on the scale of 1 to 100 nanometers.
(b) DUTIES OF THE OFFICE OF SCIENCE- In carrying out the program under
this section, the Office of Science shall--
(1) support both individual investigators and multidisciplinary
teams of investigators;
(2) pursuant to subsection (c), develop, plan, construct, acquire,
or operate special equipment or facilities for the use of investigators
conducting research and development in nanoscience and
nanoengineering;
(3) support technology transfer activities to benefit industry and
other users of nanoscience and nanoengineering; and
(4) coordinate research and development activities with industry and
other Federal agencies.
(c) NANOSCIENCE AND NANOENGINEERING RESEARCH CENTERS AND MAJOR
INSTRUMENTATION-
(1) AUTHORIZATION- From amounts authorized to be appropriated under
section 1251(b), the amounts specified under subsection (d)(2) shall,
subject to appropriations, be available for projects to develop, plan,
construct, acquire, or operate special equipment, instrumentation, or
facilities for investigators conducting research and development in
nanoscience and nanoengineering.
(2) PROJECTS- Projects under paragraph (1) may include the
measurement of properties at the scale of 1 to 100 nanometers, manipulation
at such scales, and the integration of technologies based on nanoscience or
nanoengineering into bulk materials or other technologies.
(3) FACILITIES- Facilities under paragraph (1) may include electron
microcharacterization facilities, microlithography facilities, scanning
probe facilities and related instrumentation science.
(4) COLLABORATION- The Secretary shall encourage collaborations
among universities, laboratories and industry at facilities under this
subsection. At least one facility under this subsection shall have a
specific mission of technology transfer to other institutions and to
industry.
(d) AUTHORIZATION OF APPROPRIATIONS-
(1) TOTAL AUTHORIZATION- From amounts authorized to be appropriated
under section 1251(b), the following amounts are authorized for activities
under this section--
(A) $270,000,000 for fiscal year 2003;
(B) $290,000,000 for fiscal year 2004;
(C) $310,000,000 for fiscal year 2005; and
(D) $330,000,000 for fiscal year 2006.
(2) NANOSCIENCE AND NANOENGINEERING RESEARCH CENTERS AND MAJOR
INSTRUMENTATION- Of the amounts under paragraph (1), the following amounts
are authorized to carry out subsection (c)--
(A) $135,000,000 for fiscal year 2003;
(B) $150,000,000 for fiscal year 2004;
(C) $120,000,000 for fiscal year 2005; and
(D) $100,000,000 for fiscal year 2006.
SEC. 1253. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.
(a) ESTABLISHMENT- The Secretary, acting through the Office of
Science, shall support a program to advance the Nation's computing capability
across a diverse set of grand challenge computationally based science problems
related to departmental missions.
(b) DUTIES OF THE OFFICE OF SCIENCE- In carrying out the program under
this section, the Office of Science shall--
(1) advance basic science through computation by developing software
to solve grand challenge science problems on new generations of computing
platforms;
(2) enhance the foundations for scientific computing by developing
the basic mathematical and computing systems software needed to take full
advantage of the computing capabilities of computers with peak speeds of 100
teraflops or more, some of which may be unique to the scientific problem of
interest;
(3) enhance national collaboratory and networking capabilities by
developing software to integrate geographically separated researchers into
effective research teams and to facilitate access to and movement and
analysis of large (petabyte) data sets; and
(4) maintain a robust scientific computing hardware infrastructure
to ensure that the computing resources needed to address DOE missions are
available; explore new computing approaches and technologies that promise to
advance scientific computing.
(c) HIGH-PERFORMANCE COMPUTING ACT PROGRAM- Section 203(a) of the
High-Performance Computing Act of 1991 (15 U.S.C. 5523(a)) is
amended--
(1) in paragraph (3), by striking `and';
(2) in paragraph (4), by striking the period and inserting `; and';
and
(3) by adding after paragraph (4) the following:
`(5) conduct an integrated program of research, development, and
provision of facilities to develop and deploy to scientific and technical
users the high-performance computing and collaboration tools needed to
fulfill the statutory missions of the Department of Energy in conducting
basic and applied energy research.'.
(d) COORDINATION WITH THE DOE NATIONAL NUCLEAR SECURITY AGENCY
ACCELERATED STRATEGIC COMPUTING INITIATIVE AND OTHER NATIONAL COMPUTING
PROGRAMS- The Secretary shall ensure that this program, to the extent
feasible, is integrated and consistent with--
(1) the Accelerated Strategic Computing Initiative of the National
Nuclear Security Agency; and
(2) other national efforts related to advanced scientific computing
for science and engineering.
(e) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1251(b), the following amounts are authorized for activities under
this section--
(1) $285,000,000 for fiscal year 2003;
(2) $300,000,000 for fiscal year 2004;
(3) $310,000,000 for fiscal year 2005; and
(4) $320,000,000 for fiscal year 2006.
SEC. 1254. FUSION ENERGY SCIENCES PROGRAM AND PLANNING.
(a) OVERALL PLAN FOR FUSION ENERGY SCIENCES PROGRAM-
(1) IN GENERAL- Not later than 6 months after the date of enactment
of this subtitle, the Secretary, after consultation with the Fusion Energy
Sciences Advisory Committee, shall develop and transmit to the Congress a
plan to ensure a strong scientific base for the Fusion Energy Sciences
Program within the Office of Science and to enable the experiments described
in subsections (b) and (c).
(2) OBJECTIVES OF PLAN- The plan under this subsection shall include
as its objectives--
(A) to ensure that existing fusion research facilities and
equipment are more fully utilized with appropriate measurements and
control tools;
(B) to ensure a strengthened fusion science theory and
computational base;
(C) to encourage and ensure that the selection of and funding for
new magnetic and inertial fusion research facilities is based on
scientific innovation and cost effectiveness;
(D) to improve the communication of scientific results and methods
between the fusion science community and the wider scientific
community;
(E) to ensure that adequate support is provided to optimize the
design of the magnetic fusion burning plasma experiments referred to in
subsections (b) and (c); and
(F) to ensure that inertial confinement fusion facilities are
utilized to the extent practicable for the purpose of inertial fusion
energy research and development.
(b) PLAN FOR UNITED STATES FUSION EXPERIMENT-
(1) IN GENERAL- The Secretary, after consultation with the Fusion
Energy Sciences Advisory Committee, shall develop a plan for construction in
the United States of a magnetic fusion burning plasma experiment for the
purpose of accelerating scientific understanding of fusion plasmas. The
Secretary shall request a review of the plan by the National Academy of
Sciences and shall transmit the plan and the review to the Congress by July
1, 2004.
(2) REQUIREMENTS OF PLAN- The plan described in paragraph (1)
shall--
(A) address key burning plasma physics issues; and
(B) include specific information on the scientific capabilities of
the proposed experiment, the relevance of these capabilities to the goal
of practical fusion energy, and the overall design of the experiment
including its estimated cost and potential construction
sites.
(c) PLAN FOR PARTICIPATION IN AN INTERNATIONAL EXPERIMENT- In addition
to the plan described in subsection (b), the Secretary, after consultation
with the Fusion Energy Sciences Advisory Committee, may also develop a plan
for United States participation in an international burning plasma experiment
for the same purpose, whose construction is found by the Secretary to be
highly likely and where United States participation is cost-effective relative
to the cost and scientific benefits of a domestic experiment described in
subsection (b). If the Secretary elects to develop a plan under this
subsection, he shall include the information described in subsection (b)(2),
and an estimate of the cost of United States participation in such an
international experiment. The Secretary shall request a review by the National
Academy of Sciences of a plan developed under this subsection, and shall
transmit the plan and the review to the Congress no later than July 1,
2004.
(d) AUTHORIZATION FOR RESEARCH AND DEVELOPMENT- The Secretary, through
the Office of Science, may conduct any research and development necessary to
fully develop the plans described in this section.
(e) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1251, the following amounts are authorized for activities under this
section and for activities of the Fusion Energy Science Program--
(1) for fiscal year 2003, $335,000,000;
(2) for fiscal year 2004, $349,000,000;
(3) for fiscal year 2005, $362,000,000; and
(4) for fiscal year 2006, $377,000,000.
Subtitle F--Energy, Safety, and Environmental
Protection
SEC. 1261. CRITICAL ENERGY INFRASTRUCTURE PROTECTION RESEARCH AND
DEVELOPMENT.
(a) IN GENERAL- The Secretary shall carry out a research, development,
demonstration and technology deployment program, in partnership with industry,
on critical energy infrastructure protection, consistent with the roles and
missions outlined for the Secretary in Presidential Decision Directive 63,
entitled `Critical Infrastructure Protection'. The program shall have the
following goals:
(1) Increase the understanding of physical and information system
disruptions to the energy infrastructure that could result in cascading or
widespread regional outages.
(2) Develop energy infrastructure assurance `best practices' through
vulnerability and risk assessments.
(3) Protect against, mitigate the effect of, and improve the ability
to recover from disruptive incidents within the energy
infrastructure.
(b) PROGRAM SCOPE- The program under subsection (a) shall include
research, development, deployment, technology demonstration for--
(1) analysis of energy infrastructure interdependencies to quantify
the impacts of system vulnerabilities in relation to each other;
(2) probabilistic risk assessment of the energy infrastructure to
account for unconventional and terrorist threats;
(3) incident tracking and trend analysis tools to assess the
severity of threats and reported incidents to the energy infrastructure;
and
(4) integrated multisensor, warning and mitigation technologies to
detect, integrate, and localize events affecting the energy infrastructure
including real time control to permit the reconfiguration of energy delivery
systems.
(c) REGIONAL COORDINATION- The program under this section shall
cooperate with Departmental activities to promote regional coordination under
section 102 of this Act, to ensure that the technologies and assessments
developed by the program are transferred in a timely manner to State and local
authorities, and to the energy industries.
(d) COORDINATION WITH INDUSTRY RESEARCH ORGANIZATIONS- The Secretary
may enter into grants, contracts, and cooperative agreements with industry
research organizations to facilitate industry participation in research under
this section and to fulfill applicable cost-sharing requirements.
(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Secretary to carry out this section--
(1) $25,000,000 for fiscal year 2003;
(2) $26,000,000 for fiscal year 2004;
(3) $27,000,000 for fiscal year 2005; and
(4) $28,000,000 for fiscal year 2006.
(f) CRITICAL ENERGY INFRASTRUCTURE FACILITY DEFINED- For purposes of
this section, the term `critical energy infrastructure facility' means a
physical or cyber-based system or service for the generation, transmission or
distribution of electrical energy, or the production, refining,
transportation, or storage of petroleum, natural gas, or petroleum product,
the incapacity or destruction of which would have a debilitating impact on the
defense or economic security of the United States. The term shall not include
a facility that is licensed by the Nuclear Regulatory Commission under section
103 or 104b of the Atomic Energy Act of 1954 (42 U.S.C. 2133 and
2134(b)).
SEC. 1262. RESEARCH AND DEMONSTRATION FOR REMEDIATION OF GROUNDWATER
FROM ENERGY ACTIVITIES.
(a) IN GENERAL- The Secretary shall carry out a research, development,
demonstration, and technology deployment program to improve methods for
environmental restoration of groundwater contaminated by energy activities,
including oil and gas production, surface and underground mining of coal, and
in-situ extraction of energy resources.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section $10,000,000 for each
of fiscal years 2003 through 2006.
TITLE XIII--CLIMATE CHANGE SCIENCE AND TECHNOLOGY
Subtitle A--Department of Energy Programs
SEC. 1301. DEPARTMENT OF ENERGY GLOBAL CHANGE RESEARCH.
(a) PROGRAM DIRECTION- The Secretary, acting through the Office of
Science, shall conduct a comprehensive research program to understand and
address the effects of energy production and use on the global climate
system.
(1) CLIMATE MODELING- The Secretary shall--
(A) conduct observational and analytical research to acquire and
interpret the data needed to describe the radiation balance from the
surface of the Earth to the top of the atmosphere;
(B) determine the factors responsible for the Earth's radiation
balance and incorporate improved understanding of such factors in climate
models;
(C) improve the treatment of aerosols and clouds in climate
models;
(D) reduce the uncertainty in decade-to-century model-based
projections of climate change; and
(E) increase the availability and utility of climate change
simulations to researchers and policy makers interested in assessing the
relationship between energy and climate change.
(2) CARBON CYCLE- The Secretary shall--
(A) carry out field research and modeling
activities--
(i) to understand and document the net exchange of carbon
dioxide between major terrestrial ecosystems and the atmosphere;
or
(ii) to evaluate the potential of proposed methods of carbon
sequestration;
(B) develop and test carbon cycle models; and
(C) acquire data and develop and test models to simulate and
predict the transport, transformation, and fate of energy-related
emissions in the atmosphere.
(3) ECOLOGICAL PROCESSES- The Secretary shall carry out long-term
experiments of the response of intact terrestrial ecosystems to--
(A) alterations in climate and atmospheric composition;
or
(B) land-use changes that affect ecosystem extent and
function.
(4) INTEGRATED ASSESSMENT- The Secretary shall develop and improve
methods and tools for integrated analyses of the climate change system from
emissions of aerosols and greenhouse gases to the consequences of these
emissions on climate and the resulting effects of human-induced climate
change on economic and social systems, with emphasis on critical gaps in
integrated assessment modeling, including modeling of technology innovation
and diffusion and the development of metrics of economic costs of climate
change and policies for mitigating or adapting to climate change.
(c) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1251(b), there are authorized to be appropriated to the Secretary for
carrying out activities under this section--
(1) $150,000,000 for fiscal year 2003;
(2) $175,000,000 for fiscal year 2004;
(3) $200,000,000 for fiscal year 2005; and
(4) $230,000,000 for fiscal year 2006.-
(d) LIMITATION ON FUNDS- Funds authorized to be appropriated under
this section shall not be used for the development, demonstration, or
deployment of technology to reduce, avoid, or sequester greenhouse gas
emissions.
SEC. 1302. AMENDMENTS TO THE FEDERAL NONNUCLEAR RESEARCH AND DEVELOPMENT
ACT OF 1974.
Section 6 of the Federal Nonnuclear Energy Research and Development
Act of 1974 (42 U.S.C. 5905) is amended--
(A) in paragraph (2), by striking `and' at the end;
(B) in paragraph (3) by striking the period at the end and
inserting `, and'; and
(C) by adding at the end the following:
`(4) solutions to the effective management of greenhouse gas
emissions in the long term by the development of technologies and practices
designed to--
`(A) reduce or avoid anthropogenic emissions of greenhouse
gases;
`(B) remove and sequester greenhouse gases from emissions streams;
and
`(C) remove and sequester greenhouse gases from the atmosphere.';
and
(A) in paragraph (2), by striking `subsection (a)(1) through (3)'
and inserting `paragraphs (1) through (4) of subsection (a)';
and
(i) in subparagraph (R), by striking `and' at the
end;
(ii) in subparagraph (S), by striking the period at the end and
inserting `; and'; and
(iii) by adding at the end the following:
`(T) to pursue a long-term climate technology strategy designed to
demonstrate a variety of technologies by which stabilization of greenhouse
gases might be best achieved, including accelerated research, development,
demonstration and deployment of--
`(i) renewable energy systems;
`(ii) advanced fossil energy technology;
`(iii) advanced nuclear power plant design;
`(iv) fuel cell technology for residential, industrial and
transportation applications;
`(v) carbon sequestration practices and technologies, including
agricultural and forestry practices that store and sequester
carbon;
`(vi) efficient electrical generation, transmission and
distribution technologies; and
`(vii) efficient end use energy technologies.'.
Subtitle B--Department of Agriculture Programs
SEC. 1311. CARBON SEQUESTRATION BASIC AND APPLIED RESEARCH.
(1) IN GENERAL- The Secretary of Agriculture shall carry out
research in the areas of soil science that promote understanding
of--
(A) the net sequestration of organic carbon in soil;
and
(B) net emissions of other greenhouse gases from
agriculture.
(2) AGRICULTURAL RESEARCH SERVICE- The Secretary of Agriculture,
acting through the Agricultural Research Service, shall collaborate with
other Federal agencies in developing data and carrying out research
addressing soil carbon fluxes (losses and gains) and net emissions of
methane and nitrous oxide from cultivation and animal management
activities.
(3) COOPERATIVE STATE RESEARCH, EXTENSION, AND EDUCATION SERVICE-
(A) IN GENERAL- The Secretary of Agriculture, acting through the
Cooperative State Research, Extension, and Education Service, shall
establish a competitive grant program to carry out research on the matters
described in paragraph (1) in land grant universities and other research
institutions.
(B) CONSULTATION ON RESEARCH TOPICS- Before issuing a request for
proposals for basic research under paragraph (1), the Cooperative State
Research, Extension, and Education Service shall consult with the
Agricultural Research Service to ensure that proposed research areas are
complementary with and do not duplicate research projects underway at the
Agricultural Research Service or other Federal agencies.
(1) IN GENERAL- The Secretary of Agriculture shall carry out applied
research in the areas of soil science, agronomy, agricultural economics and
other agricultural sciences to--
(A) promote understanding of--
(i) how agricultural and forestry practices affect the
sequestration of organic and inorganic carbon in soil and net emissions
of other greenhouse gases;
(ii) how changes in soil carbon pools are cost-effectively
measured, monitored, and verified; and
(iii) how public programs and private market approaches can be
devised to incorporate carbon sequestration in a broader societal
greenhouse gas emission reduction effort;
(B) develop methods for establishing baselines for measuring the
quantities of carbon and other greenhouse gases sequestered;
and
(C) evaluate leakage and performance issues.
(2) REQUIREMENTS- To the maximum extent practicable, applied
research under paragraph (1) shall--
(A) draw on existing technologies and methods; and
(B) strive to provide methodologies that are accessible to a
nontechnical audience.
(3) MINIMIZATION OF ADVERSE ENVIRONMENTAL IMPACTS- All applied
research under paragraph (1) shall be conducted with an emphasis on
minimizing adverse environmental impacts.
(4) NATURAL RESOURCES CONSERVATION SERVICE- The Secretary of
Agriculture, acting through the Natural Resources Conservation Service,
shall collaborate with other Federal agencies, including the National
Institute of Standards and Technology, in developing new measuring
techniques and equipment or adapting existing techniques and equipment to
enable cost-effective and accurate monitoring and verification, for a wide
range of agricultural and forestry practices, of--
(A) changes in soil carbon content in agricultural soils, plants,
and trees; and
(B) net emissions of other greenhouse gases.
(5) COOPERATIVE STATE RESEARCH, EXTENSION, AND EDUCATION SERVICE-
(A) IN GENERAL- The Secretary of Agriculture, acting through the
Cooperative State Research, Extension, and Education Service, shall
establish a competitive grant program to encourage research on the matters
described in paragraph (1) by land grant universities and other research
institutions.
(B) CONSULTATION ON RESEARCH TOPICS- Before issuing a request for
proposals for applied research under paragraph (1), the Cooperative State
Research, Extension, and Education Service shall consult with the National
Resources Conservation Service and the Agricultural Research Service to
ensure that proposed research areas are complementary with and do not
duplicate research projects underway at the Agricultural Research Service
or other Federal agencies.
(1) IN GENERAL- The Secretary of Agriculture may designate not more
than two research consortia to carry out research projects under this
section, with the requirement that the consortia propose to conduct basic
research under subsection (a) and applied research under subsection
(b).
(2) SELECTION- The consortia shall be selected in a competitive
manner by the Cooperative State Research, Extension, and Education
Service.
(3) ELIGIBLE CONSORTIUM PARTICIPANTS- Entities eligible to
participate in a consortium include--
(A) land grant colleges and universities;
(B) private research institutions;
(C) State geological surveys;
(D) agencies of the Department of Agriculture;
(E) research centers of the National Aeronautics and Space
Administration and the Department of Energy;
(F) other Federal agencies;
(G) representatives of agricultural businesses and organizations
with demonstrated expertise in these areas; and
(H) representatives of the private sector with demonstrated
expertise in these areas.
(4) RESERVATION OF FUNDING- If the Secretary of Agriculture
designates one or two consortia, the Secretary of Agriculture shall reserve
for research projects carried out by the consortium or consortia not more
than 25 percent of the amounts made available to carry out this section for
a fiscal year.
(d) STANDARDS OF PRECISION-
(1) CONFERENCE- Not later than 3 years after the date of enactment
of this subtitle, the Secretary of Agriculture, acting through the
Agricultural Research Service and in consultation with the Natural Resources
Conservation Service, shall convene a conference of key scientific experts
on carbon sequestration and measurement techniques from various sectors
(including the Government, academic, and private sectors) to--
(A) discuss benchmark standards of precision for measuring soil
carbon content and net emissions of other greenhouse gases;
(B) designate packages of measurement techniques and modeling
approaches to achieve a level of precision agreed on by the participants
in the conference; and
(C) evaluate results of analyses on baseline, permanence, and
leakage issues.
(2) DEVELOPMENT OF BENCHMARK STANDARDS-
(A) IN GENERAL- The Secretary shall develop benchmark standards
for measuring the carbon content of soils and plants (including trees)
based on--
(i) information from the conference under paragraph
(1);
(ii) research conducted under this section; and
(iii) other information available to the
Secretary.
(B) OPPORTUNITY FOR PUBLIC COMMENT- The Secretary shall provide an
opportunity for the public to comment on benchmark standards developed
under subparagraph (A).
(3) REPORT- Not later than 180 days after the conclusion of the
conference under paragraph (1), the Secretary of Agriculture shall submit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report on
the results of the conference.
(e) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to carry out
this section $25,000,000 for each of fiscal years 2003 through
2006.
(2) ALLOCATION- Of the amounts made available to carry out this
section for a fiscal year, at least 50 percent shall be allocated for
competitive grants by the Cooperative State Research, Extension, and
Education Service.
SEC. 1312. CARBON SEQUESTRATION DEMONSTRATION PROJECTS AND
OUTREACH.
(a) DEMONSTRATION PROJECTS-
(1) DEVELOPMENT OF MONITORING PROGRAMS-
(A) IN GENERAL- The Secretary of Agriculture, acting through the
Natural Resources Conservation Service and in cooperation with local
extension agents, experts from land grant universities, and other local
agricultural or conservation organizations, shall develop user-friendly
programs that combine measurement tools and modeling techniques into
integrated packages to monitor the carbon sequestering benefits of
conservation practices and net changes in greenhouse gas
emissions.
(B) BENCHMARK LEVELS OF PRECISION- The programs developed under
subparagraph (A) shall strive to achieve benchmark levels of precision in
measurement in a cost-effective manner.
(A) IN GENERAL- The Secretary of Agriculture, acting through the
Farm Service Agency, shall establish a program under which projects use
the monitoring programs developed under paragraph (1) to demonstrate the
feasibility of methods of measuring, verifying, and
monitoring--
(i) changes in organic carbon content and other carbon pools in
agricultural soils, plants, and trees; and
(ii) net changes in emissions of other greenhouse
gases.
(B) EVALUATION OF IMPLICATIONS- The projects under subparagraph
(A) shall include evaluation of the implications for reassessed baselines,
carbon or other greenhouse gas leakage, and permanence of
sequestration.
(C) SUBMISSION OF PROPOSALS- Proposals for projects under
subparagraph (A) shall be submitted by the appropriate agency of each
State, in cooperation with interested local jurisdictions and State
agricultural and conservation organizations.
(D) LIMITATION- Not more than 10 projects under subparagraph (A)
may be approved in conjunction with applied research projects under
section 1311(b) until benchmark measurement and assessment standards are
established under section 1311(d).
(E) NATIONAL FOREST SYSTEM LAND- The Secretary of Agriculture
shall consider the use of National Forest System land as sites to
demonstrate the feasibility of monitoring programs developed under
paragraph (1).
(1) IN GENERAL- The Cooperative State Research, Extension, and
Education Service shall widely disseminate information about the economic
and environmental benefits that can be generated by adoption of conservation
practices (including benefits from increased sequestration of carbon and
reduced emission of other greenhouse gases).
(2) PROJECT RESULTS- The Cooperative State Research, Extension, and
Education Service shall inform farmers, ranchers, and State agricultural and
energy offices in each State of--
(A) the results of demonstration projects under subsection (a)(2)
in the State; and
(B) the ways in which the methods demonstrated in the projects
might be applicable to the operations of those farmers and
ranchers.
(3) POLICY OUTREACH- On a periodic basis, the Cooperative State
Research, Extension, and Education Service shall disseminate information on
the policy nexus between global climate change mitigation strategies and
agriculture, so that farmers and ranchers may better understand the global
implications of the activities of farmers and ranchers.
(c) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to carry out
this section $10,000,000 for each of fiscal years 2003 through
2006.
(2) ALLOCATION- Of the amounts made available to carry out this
section for a fiscal year, at least 50 percent shall be allocated for
demonstration projects under subsection (a)(2).
SEC. 1313. CARBON STORAGE AND SEQUESTRATION ACCOUNTING
RESEARCH.
(a) IN GENERAL- The Secretary of Agriculture, in collaboration with
the heads of other Federal agencies, shall conduct research on, develop, and
publish as appropriate, carbon storage and sequestration accounting models,
reference tables, or other tools that can assist landowners and others in
cost-effective and reliable quantification of the carbon release,
sequestration, and storage expected to result from various resource uses, land
uses, practices, activities or forest, agricultural, or cropland management
practices over various periods of time.
(b) PILOT PROGRAMS- The Secretary of Agriculture shall make
competitive grants to not more than five eligible entities to carry out pilot
programs to demonstrate and assess the potential for development and use of
carbon inventories and accounting systems that can assist in developing and
assessing carbon storage and sequestration policies and programs. Not later
than 1 year after the date of enactment of this section, the Secretary of
Agriculture, in collaboration with the heads of other Federal agencies and
with other interested parties, shall develop guidelines for such pilot
programs, including eligibility for awards, application contents, reporting
requirements, and mechanisms for peer review.
(c) REPORT- Not later than 5 years after the date of enactment of this
section, the Secretary of Agriculture, in collaboration with the heads of
other Federal agencies, shall submit to Congress a report on the technical,
institutional, infrastructure, design and funding needs to establish and
maintain a national carbon storage and sequestration baseline and accounting
system. The report shall include documentation of the results of each of the
pilot programs.
(d) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section,
there are authorized to be appropriated to the Secretary of Agriculture
$20,000,000 for fiscal years 2003 through 2007.
Subtitle C--International Energy Technology
Transfer
SEC. 1321. CLEAN ENERGY TECHNOLOGY EXPORTS PROGRAM.
(a) DEFINITIONS- In this section:
(1) CLEAN ENERGY TECHNOLOGY- The term `clean energy technology'
means an energy supply or end-use technology that, over its lifecycle and
compared to a similar technology already in commercial use in developing
countries, countries in transition, and other partner countries--
(A) emits substantially lower levels of pollutants or greenhouse
gases; and
(B) may generate substantially smaller or less toxic volumes of
solid or liquid waste.
(2) INTERAGENCY WORKING GROUP- The term `interagency working group'
means the Interagency Working Group on Clean Energy Technology Exports
established under subsection (b).
(b) INTERAGENCY WORKING GROUP-
(1) ESTABLISHMENT- Not later than 90 days after the date of
enactment of this section, the Secretary of Energy, the Secretary of
Commerce, and the Administrator of the United States Agency for
International Development shall jointly establish a Interagency Working
Group on Clean Energy Technology Exports. The interagency working group will
focus on opening and expanding energy markets and transferring clean energy
technology to the developing countries, countries in transition, and other
partner countries that are expected to experience, over the next 20 years,
the most significant growth in energy production and associated greenhouse
gas emissions, including through technology transfer programs under the
Framework Convention on Climate Change, other international agreements, and
relevant Federal efforts.
(2) MEMBERSHIP- The interagency working group shall be jointly
chaired by representatives appointed by the agency heads under paragraph (1)
and shall also include representatives from the Department of State, the
Department of the Treasury, the Environmental Protection Agency, the
Export-Import Bank, the Overseas Private Investment Corporation, the Trade
and Development Agency, and other Federal agencies as deemed appropriate by
all three agency heads under paragraph (1).
(3) DUTIES- The interagency working group shall--
(A) analyze technology, policy, and market opportunities for
international development, demonstration, and deployment of clean energy
technology;
(B) investigate issues associated with building capacity to deploy
clean energy technology in developing countries, countries in transition,
and other partner countries, including--
(i) energy-sector reform;
(ii) creation of open, transparent, and competitive markets for
energy technologies;
(iii) availability of trained personnel to deploy and maintain
the technology; and
(iv) demonstration and cost-buydown mechanisms to promote first
adoption of the technology;
(C) examine relevant trade, tax, international, and other policy
issues to assess what policies would help open markets and improve United
States clean energy technology exports in support of the following
areas--
(i) enhancing energy innovation and cooperation, including
energy sector and market reform, capacity building, and financing
measures;
(ii) improving energy end-use efficiency technologies, including
buildings and facilities, vehicle, industrial, and co-generation
technology initiatives; and
(iii) promoting energy supply technologies, including fossil,
nuclear, and renewable technology initiatives;
(D) establish an advisory committee involving the private sector
and other interested groups on the export and deployment of clean energy
technology;
(E) monitor each agency's progress towards meeting goals in the
5-year strategic plan submitted to Congress pursuant to the Energy and
Water Development Appropriations Act, 2001, and the Energy and Water
Development Appropriations Act, 2002;
(F) make recommendations to heads of appropriate Federal agencies
on ways to streamline Federal programs and policies to improve each
agency's role in the international development, demonstration, and
deployment of clean energy technology;
(G) make assessments and recommendations regarding the distinct
technological, market, regional, and stakeholder challenges necessary to
carry out the program; and
(H) recommend conditions and criteria that will help ensure that
United States funds promote sound energy policies in participating
countries while simultaneously opening their markets and exporting United
States energy technology.
(c) FEDERAL SUPPORT FOR CLEAN ENERGY TECHNOLOGY TRANSFER-
Notwithstanding any other provision of law, each Federal agency or Government
corporation carrying out an assistance program in support of the activities of
United States persons in the environment or energy sector of a developing
country, country in transition, or other partner country shall support, to the
maximum extent practicable, the transfer of United States clean energy
technology as part of that program.
(d) ANNUAL REPORT- Not later than 90 days after the date of the
enactment of this Act, and on April 1st of each year thereafter, the
Interagency Working Group shall submit a report to Congress on its activities
during the preceding calendar year. The report shall include a description of
the technology, policy, and market opportunities for international
development, demonstration, and deployment of clean energy technology
investigated by the Interagency Working Group in that year, as well as any
policy recommendations to improve the expansion of clean energy markets and
United States clean energy technology exports.
(e) REPORT ON USE OF FUNDS- Not later than October 1, 2002, and each
year thereafter, the Secretary of State, in consultation with other Federal
agencies, shall submit a report to Congress indicating how United States funds
appropriated for clean energy technology exports and other relevant Federal
programs are being directed in a manner that promotes sound energy policy
commitments in developing countries, countries in transition, and other
partner countries, including efforts pursuant to multilateral environmental
agreements.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the departments, agencies, and entities of the United States
described in subsection (b) such sums as may be necessary to support the
transfer of clean energy technology, consistent with the subsidy codes of the
World Trade Organization, as part of assistance programs carried out by those
departments, agencies, and entities in support of activities of United States
persons in the energy sector of a developing country, country in transition,
or other partner country.
SEC. 1322. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT PROGRAM.
Section 1608 of the Energy Policy Act of 1992 (42 U.S.C. 13387) is
amended by striking subsection (l) and inserting the following:
`(l) INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT PROGRAM-
`(1) DEFINITIONS- In this subsection:
`(A) INTERNATIONAL ENERGY DEPLOYMENT PROJECT- The term
`international energy deployment project' means a project to construct an
energy production facility outside the United States--
`(i) the output of which will be consumed outside the United
States; and
`(ii) the deployment of which will result in a greenhouse gas
reduction per unit of energy produced when compared to the technology
that would otherwise be implemented--
`(I) 10 percentage points or more, in the case of a unit
placed in service before January 1, 2010;
`(II) 20 percentage points or more, in the case of a unit
placed in service after December 31, 2009, and before January 1, 2020;
or
`(III) 30 percentage points or more, in the case of a unit
placed in service after December 31, 2019, and before January 1,
2030.
`(B) QUALIFYING INTERNATIONAL ENERGY DEPLOYMENT PROJECT- The term
`qualifying international energy deployment project' means an
international energy deployment project that--
`(i) is submitted by a United States firm to the Secretary in
accordance with procedures established by the Secretary by
regulation;
`(ii) uses technology that has been successfully developed or
deployed in the United States;
`(iii) meets the criteria of subsection (k);
`(iv) is approved by the Secretary, with notice of the approval
being published in the Federal Register; and
`(v) complies with such terms and conditions as the Secretary
establishes by regulation.
`(C) UNITED STATES- For purposes of this paragraph, the term
`United States', when used in a geographical sense, means the 50 States,
the District of Columbia, Puerto Rico, Guam, the Virgin Islands, American
Samoa, and the Commonwealth of the Northern Mariana Islands.
`(2) Pilot program for financial assistance-
`(A) IN GENERAL- Not later than 180 days after the date of
enactment of this subsection, the Secretary shall, by regulation, provide
for a pilot program for financial assistance for qualifying international
energy deployment projects.
`(B) SELECTION CRITERIA- After consultation with the Secretary of
State, the Secretary of Commerce, and the United States Trade
Representative, the Secretary shall select projects for participation in
the program based solely on the criteria under this title and without
regard to the country in which the project is located.
`(C) Financial assistance-
`(i) IN GENERAL- A United States firm that undertakes a
qualifying international energy deployment project that is selected to
participate in the pilot program shall be eligible to receive a loan or
a loan guarantee from the Secretary.
`(ii) RATE OF INTEREST- The rate of interest of any loan made
under clause (i) shall be equal to the rate for Treasury obligations
then issued for periods of comparable maturities.
`(iii) AMOUNT- The amount of a loan or loan guarantee under
clause (i) shall not exceed 50 percent of the total cost of the
qualified international energy deployment project.
`(iv) DEVELOPED COUNTRIES- Loans or loan guarantees made for
projects to be located in a developed country, as listed in Annex I of
the United Nations Framework Convention on Climate Change, shall require
at least a 50 percent contribution towards the total cost of the loan or
loan guarantee by the host country.
`(v) DEVELOPING COUNTRIES- Loans or loan guarantees made for
projects to be located in a developing country (those countries not
listed in Annex I of the United Nations Framework Convention on Climate
Change) shall require at least a 10 percent contribution towards the
total cost of the loan or loan guarantee by the host
country.
`(vi) CAPACITY BUILDING RESEARCH- Proposals made for projects to
be located in a developing country may include a research component
intended to build technological capacity within the host country. Such
research must be related to the technologies being deployed and must
involve both an institution in the host country and an industry,
university or national laboratory participant from the United States.
The host institution shall contribute at least 50 percent of funds
provided for the capacity building research.
`(D) COORDINATION WITH OTHER PROGRAMS- A qualifying international
energy deployment project funded under this section shall not be eligible
as a qualifying clean coal technology under section 415 of the Clean Air
Act (42 U.S.C. 7651n).
`(E) REPORT- Not later than 5 years after the date of enactment of
this subsection, the Secretary shall submit to the President a report on
the results of the pilot projects.
`(F) RECOMMENDATION- Not later than 60 days after receiving the
report under subparagraph (E), the President shall submit to Congress a
recommendation, based on the results of the pilot projects as reported by
the Secretary of Energy, concerning whether the financial assistance
program under this section should be continued, expanded, reduced, or
eliminated.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section $100,000,000 for
each of fiscal years 2003 through 2011, to remain available until
expended.'.
Subtitle D--Climate Change Science and
Information
PART I--AMENDMENTS TO THE GLOBAL CHANGE RESEARCH ACT OF
1990
SEC. 1331. AMENDMENT OF GLOBAL CHANGE RESEARCH ACT OF 1990.
Except as otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be made to a
section or other provision of the Global Change Research Act of 1990 (15
U.S.C. 2921 et seq.).
SEC. 1332. CHANGES IN DEFINITIONS.
Paragraph (1) of section 2 (15 U.S.C. 2921) is amended by striking
`Earth and Environmental Sciences' inserting `Global Change Research'.
SEC. 1333. CHANGE IN COMMITTEE NAME AND STRUCTURE.
Section 102 (15 U.S.C. 2932) is amended--
(1) by striking `earth and environmental sciences' in the section
heading and inserting `global change research';
(2) by striking `Earth and Environmental Sciences' in subsection (a)
and inserting `Global Change Research';
(3) by striking the last sentence of subsection (b) and inserting
`The representatives shall be the Deputy Secretary or the Deputy Secretary's
designee (or, in the case of an agency other than a department, the deputy
head of that agency or the deputy's designee).';
(4) by striking `Chairman of the Council,' in subsection (c) and
inserting `Director of the Office of National Climate Change Policy with
advice from the Chairman of the Council, and';
(5) by redesignating subsections (d) and (e) as subsections (e) and
(f), respectively; and
(6) by inserting after subsection (c) the following:
`(d) SUBCOMMITTEES AND WORKING GROUPS-
`(1) IN GENERAL- There shall be a Subcommittee on Global Change
Research, which shall carry out such functions of the Committee as the
Committee may assign to it.
`(2) MEMBERSHIP- The membership of the Subcommittee shall consist
of--
`(A) the membership of the Subcommittee on Global Change Research
of the Committee on Environment and Natural Resources (the functions of
which are transferred to the Subcommittee established by this subsection)
established by the National Science and Technology Council;
and
`(B) such additional members as the Chair of the Committee may,
from time to time, appoint.
`(3) CHAIR- A high ranking official of one of the departments or
agencies described in subsection (b), appointed by the Chair of the
Committee with advice from the Chairman of the Council, shall chair the
subcommittee. The Chairperson shall be knowledgeable and experienced with
regard to the administration of scientific research programs, and shall be a
representative of an agency that contributes substantially, in terms of
scientific research capability and budget, to the Program.
`(4) OTHER SUBCOMMITTEES AND WORKING GROUPS- The Committee may
establish such additional subcommittees and working groups as it sees
fit.'.
SEC. 1334. CHANGE IN NATIONAL GLOBAL CHANGE RESEARCH PLAN.
Section 104 (15 U.S.C. 2934) is amended--
(1) by inserting `short-term and long-term' before `goals' in
subsection (b)(1);
(2) by striking `usable information on which to base policy
decisions related to' in subsection (b)(1) and inserting `information
relevant and readily usable by local, State, and Federal decisionmakers, as
well as other end-users, for the formulation of effective decisions and
strategies for measuring, predicting, preventing, mitigating, and adapting
to';
(3) by adding at the end of subsection (c) the following:
`(6) Methods for integrating information to provide predictive and
other tools for planning and decisionmaking by governments, communities and
the private sector.';
(4) by striking subsection (d)(3) and inserting the
following:
`(3) combine and interpret data from various sources to produce
information readily usable by local, State, and Federal policymakers, and
other end-users, attempting to formulate effective decisions and strategies
for preventing, mitigating, and adapting to the effects of global
change.';
(5) by striking `and' in subsection (d)(2);
(6) by striking `change.' in subsection (d)(3) and inserting
`change; and';
(7) by adding at the end of subsection (d) the following:
`(4) establish a common assessment and modeling framework that may
be used in both research and operations to predict and assess the
vulnerability of natural and managed ecosystems and of human society in the
context of other environmental and social changes.'; and
(8) by adding at the end the following:
`(g) STRATEGIC PLAN; REVISED IMPLEMENTATION PLAN- The Chairman of the
Council, through the Committee, shall develop a strategic plan for the United
States Global Climate Change Research Program for the 10-year period beginning
in 2002 and submit the plan to the Congress within 180 days after the date of
enactment of the Global Climate Change Act of 2002. The Chairman, through the
Committee, shall also submit revised implementation plans as required under
subsection (a).'.
SEC. 1335. INTEGRATED PROGRAM OFFICE.
Section 105 (15 U.S.C. 2935) is amended--
(1) by redesignating subsections (a), (b), and (c) as subsections
(b), (c), and (d), respectively; and
(2) by inserting before subsection (b), as redesignated, the
following:
`(a) INTEGRATED PROGRAM OFFICE-
`(1) ESTABLISHMENT- There is established in the Office of Science
and Technology Policy an integrated program office for the global change
research program.
`(2) ORGANIZATION- The integrated program office established under
paragraph (1) shall be headed by the associate director with responsibility
for climate change science and technology and shall include, to the maximum
extent feasible, a representative from each Federal agency participating in
the global change research program.
`(3) FUNCTION- The integrated program office shall--
`(A) manage, working in conjunction with the Committee,
interagency coordination and program integration of global change research
activities and budget requests;
`(B) ensure that the activities and programs of each Federal
agency or department participating in the program address the goals and
objectives identified in the strategic research plan and interagency
implementation plans;
`(C) ensure program and budget recommendations of the Committee
are communicated to the President and are integrated into the climate
change action strategy;
`(D) review, solicit, and identify, and allocate funds for,
partnership projects that address critical research objectives or
operational goals of the program, including projects that would fill
research gaps identified by the program, and for which project resources
are shared among at least two agencies participating in the program;
and
`(E) review and provide recommendations on, in conjunction with
the Committee, all annual appropriations requests from Federal agencies or
departments participating in the program.';
(3) by striking `Committee.' in paragraph (2) of subsection (c), as
redesignated, and inserting `Committee and the Integrated Program Office.';
and
(4) by inserting `and the Integrated Program Office' after
`Committee' in paragraph (1) of subsection (d), as redesignated.
SEC. 1336. RESEARCH GRANTS.
Section 105 (15 U.S.C. 2935) is amended--
(1) by redesignating subsection (c) as subsection (d);
and
(2) by inserting after subsection (b) the following:
`(1) COMMITTEE TO DEVELOP LIST OF PRIORITY RESEARCH AREAS- The
Committee shall develop a list of priority areas for research and
development on climate change that are not being addressed by Federal
agencies.
`(2) DIRECTOR OF OSTP TO TRANSMIT LIST TO NSF- The Director of the
Office of Science and Technology Policy shall transmit the list to the
National Science Foundation.
`(3) Funding through nsf-
`(A) BUDGET REQUEST- The National Science Foundation shall
include, as part of the annual request for appropriations for the Science
and Technology Policy Institute, a request for appropriations to fund
research in the priority areas on the list developed under paragraph
(1).
`(B) AUTHORIZATION- For fiscal year 2003 and each fiscal year
thereafter, there are authorized to be appropriated to the National
Science Foundation not less than $17,000,000, to be made available through
the Science and Technology Policy Institute, for research in those
priority areas.'.
SEC. 1337. EVALUATION OF INFORMATION.
Section 106 (15 U.S.C. 2936) is amended--
(1) by striking `Scientific' in the section
heading;
(2) by striking `and' after the semicolon in paragraph (2);
and
(3) by striking `years.' in paragraph (3) and inserting `years;
and'; and
(4) by adding at the end the following:
`(4) evaluates the information being developed under this title,
considering in particular its usefulness to local, State, and national
decisionmakers, as well as to other stakeholders such as the private sector,
after providing a meaningful opportunity for the consideration of the views
of such stakeholders on the effectiveness of the Program and the usefulness
of the information.'.
PART II--NATIONAL CLIMATE SERVICES AND MONITORING
SEC. 1341. AMENDMENT OF NATIONAL CLIMATE PROGRAM ACT.
Except as otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be made to a
section or other provision of the National Climate Program Act (15 U.S.C. 2901
et seq.).
SEC. 1342. CHANGES IN FINDINGS.
Section 2 (15 U.S.C. 2901) is amended--
(1) by striking `Weather and climate change affect' in paragraph (1)
and inserting `Weather, climate change, and climate variability affect
public safety, environmental security, human health,';
(2) by striking `climate' in paragraph (2) and inserting `climate,
including seasonal and decadal fluctuations,';
(3) by striking `changes.' in paragraph (5) and inserting `changes
and providing free exchange of meteorological data.'; and
(4) by adding at the end the following:
`(7) The present rate of advance in research and development and
application of such advances is inadequate and new developments must be
incorporated rapidly into services for the benefit of the public.
`(8) The United States lacks adequate infrastructure and research to
meet national climate monitoring and prediction needs.'.
SEC. 1343. TOOLS FOR REGIONAL PLANNING.
Section 5(d) (15 U.S.C. 2904(d)) is amended--
(1) by redesignating paragraphs (4) through (9) as paragraphs (5)
through (10), respectively;
(2) by inserting after paragraph (3) the following:
`(4) methods for improving modeling and predictive capabilities and
developing assessment methods to guide national, regional, and local
planning and decisionmaking on land use, water hazards, and related
issues;';
(3) by inserting `sharing,' after `collection,' in paragraph (5), as
redesignated;
(4) by striking `experimental' each place it appears in paragraph
(9), as redesignated;
(5) by striking `preliminary' in paragraph (10), as
redesignated;
(6) by striking `this Act,' the first place it appears in paragraph
(10), as redesignated, and inserting `the Global Climate Change Act of
2002,'; and
(7) by striking `this Act,' the second place it appears in paragraph
(10), as redesignated, and inserting `that Act,'.
SEC. 1344. AUTHORIZATION OF APPROPRIATIONS.
Section 9 (15 U.S.C. 2908) is amended--
(1) by striking `1979,' and inserting `2002,';
(2) by striking `1980,' and inserting `2003,';
(3) by striking `1981,' and inserting `2004,'; and
(4) by striking `$25,500,000' and inserting
`$75,500,000'.
SEC. 1345. NATIONAL CLIMATE SERVICE PLAN.
The Act (15 U.S.C. 2901 et seq.) is amended by inserting after section
5 the following:
`SEC. 6. NATIONAL CLIMATE SERVICE PLAN.
`Within 1 year after the date of enactment of the Global Climate
Change Act of 2002, the Secretary of Commerce shall submit to the Senate
Committee on Commerce, Science, and Transportation and the House Science
Committee a plan of action for a National Climate Service under the National
Climate Program. The plan shall set forth recommendations and funding
estimates for--
`(1) a national center for operational climate monitoring and
predicting with the functional capacity to monitor and adjust observing
systems as necessary to reduce bias;
`(2) the design, deployment, and operation of an adequate national
climate observing system that builds upon existing environmental monitoring
systems and closes gaps in coverage by existing systems;
`(3) the establishment of a national coordinated modeling strategy,
including a national climate modeling center to provide a dedicated
capability for climate modeling and a regular schedule of projections on a
long- and short-term time schedule and at a range of spatial
scales;
`(4) improvements in modeling and assessment capabilities needed to
integrate information to predict regional and local climate changes and
impacts;
`(5) in coordination with the private sector, improving the capacity
to assess the impacts of predicted and projected climate changes and
variations;
`(6) a program for long-term stewardship, quality control,
development of relevant climate products, and efficient access to all
relevant climate data, products, and critical model simulations;
and
`(7) mechanisms to coordinate among Federal agencies, State, and
local government entities and the academic community to ensure timely and
full sharing and dissemination of climate information and services, both
domestically and internationally.'.
SEC. 1346. INTERNATIONAL PACIFIC RESEARCH AND COOPERATION.
The Secretary of Commerce, in cooperation with the Administrator of
the National Aeronautics and Space Administration, shall conduct international
research in the Pacific region that will increase understanding of the nature
and predictability of climate variability in the Asia-Pacific sector,
including regional aspects of global environmental change. Such research
activities shall be conducted in cooperation with other nations of the region.
There are authorized to be appropriated for purposes of this section
$1,500,000 to the National Oceanic and Atmospheric Administration, $1,500,000
to the National Aeronautics and Space Administration, and $500,000 for the
Pacific ENSO Applications Center.
SEC. 1347. REPORTING ON TRENDS.
(a) ATMOSPHERIC MONITORING AND VERIFICATION PROGRAM- The Secretary of
Commerce, in coordination with relevant Federal agencies, shall, as part of
the National Climate Service, establish an atmospheric monitoring and
verification program utilizing aircraft, satellite, ground sensors, and
modeling capabilities to monitor, measure, and verify atmospheric greenhouse
gas levels, dates, and emissions. Where feasible, the program shall measure
emissions from identified sources participating in the reporting system for
verification purposes. The program shall use measurements and standards that
are consistent with those utilized in the greenhouse gas measurement and
reporting system established under subsection (a) and the registry established
under section 1102.
(b) ANNUAL REPORTING- The Secretary of Commerce shall issue an annual
report that identifies greenhouse emissions and trends on a local, regional,
and national level. The report shall also identify emissions or reductions
attributable to individual or multiple sources covered by the greenhouse gas
measurement and reporting system established under section 1102.
SEC. 1348. ARCTIC RESEARCH AND POLICY.
(a) ARCTIC RESEARCH COMMISSION- Section 103(d) of the Arctic Research
and Policy Act of 1984 (15 U.S.C. 4102(d)) is amended--
(1) by striking `exceed 90 days' in the second sentence of paragraph
(1) and inserting `exceed, in the case of the chairperson of the Commission,
120 days, and, in the case of any other member of the Commission, 90
days,';
(2) by striking `Chairman' in paragraph (2) and inserting
`chairperson'.
(b) GRANTS- Section 104 of the Arctic Research and Policy Act of 1984
(15 U.S.C. 4103) is amended by adding at the end the following:
`(c) Funding for Arctic Research-
`(1) IN GENERAL- With the prior approval of the commission, or under
authority delegated by the Commission, and subject to such conditions as the
Commission may specify, the Executive Director appointed under section
106(a) may--
`(A) make grants to persons to conduct research concerning the
Arctic; and
`(B) make funds available to the National Science Foundation or to
Federal agencies for the conduct of research concerning the
Arctic.
`(2) EFFECT OF ACTION BY EXECUTIVE DIRECTOR- An action taken by the
executive director under paragraph (1) shall be final and binding on the
Commission.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Commission such sums as are necessary to carry out this
section.'.
SEC. 1349. ABRUPT CLIMATE CHANGE RESEARCH.
(a) IN GENERAL- The Secretary of Commerce, through the National
Oceanic and Atmospheric Administration, shall carry out a program of
scientific research on potential abrupt climate change designed--
(1) to develop a global array of terrestrial and oceanographic
indicators of paleoclimate in order sufficiently to identify and describe
past instances of abrupt climate change;
(2) to improve understanding of thresholds and nonlinearities in
geophysical systems related to the mechanisms of abrupt climate
change;
(3) to incorporate these mechanisms into advanced geophysical models
of climate change; and
(4) to test the output of these models against an improved global
array of records of past abrupt climate changes.
(b) ABRUPT CLIMATE CHANGE DEFINED- In this section, the term `abrupt
climate change' means a change in climate that occurs so rapidly or
unexpectedly that human or natural systems may have difficulty adapting to
it.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Commerce $10,000,000 for each of the fiscal
years 2003 through 2008, and such sums as may be necessary for fiscal years
after fiscal year 2008, to carry out subsection (a).
PART III--OCEAN AND COASTAL OBSERVING SYSTEM
SEC. 1351. OCEAN AND COASTAL OBSERVING SYSTEM.
(a) ESTABLISHMENT- The President, through the National Ocean Research
Leadership Council, established by section 7902(a) of title 10, United States
Code, shall establish and maintain an integrated ocean and coastal observing
system that provides for long-term, continuous, and real-time observations of
the oceans and coasts for the purposes of--
(1) understanding, assessing and responding to human-induced and
natural processes of global change;
(2) improving weather forecasts and public warnings;
(3) strengthening national security and military
preparedness;
(4) enhancing the safety and efficiency of marine
operations;
(5) supporting efforts to restore the health of and manage coastal
and marine ecosystems and living resources;
(6) monitoring and evaluating the effectiveness of ocean and coastal
environmental policies;
(7) reducing and mitigating ocean and coastal pollution;
and
(8) providing information that contributes to public awareness of
the state and importance of the oceans.
(b) COUNCIL FUNCTIONS- In addition to its responsibilities under
section 7902(a) of such title, the Council shall be responsible for planning
and coordinating the observing system and in carrying out this responsibility
shall--
(1) develop and submit to the Congress, within 6 months after the
date of enactment of this Act, a plan for implementing a national ocean and
coastal observing system that--
(A) uses an end-to-end engineering and development approach to
develop a system design and schedule for operational
implementation;
(B) determines how current and planned observing activities can be
integrated in a cost-effective manner;
(C) provides for regional and concept demonstration
projects;
(D) describes the role and estimated budget of each Federal agency
in implementing the plan;
(E) contributes, to the extent practicable, to the National Global
Change Research Plan under section 104 of the Global Change Research Act
of 1990 (15 U.S.C. 2934); and
(F) makes recommendations for coordination of ocean observing
activities of the United States with those of other nations and
international organizations;
(2) serve as the mechanism for coordinating Federal ocean observing
requirements and activities;
(3) work with academic, State, industry and other actual and
potential users of the observing system to make effective use of existing
capabilities and incorporate new technologies;
(4) approve standards and protocols for the administration of the
system, including--
(A) a common set of measurements to be collected and distributed
routinely and by uniform methods;
(B) standards for quality control and assessment of
data;
(C) design, testing and employment of forecast models for ocean
conditions;
(D) data management, including data transfer protocols and
archiving; and
(E) designation of coastal ocean observing regions;
and
(5) in consultation with the Secretary of State, provide
representation at international meetings on ocean observing programs and
coordinate relevant Federal activities with those of other
nations.
(c) System Elements- The integrated ocean and coastal observing system
shall include the following elements:
(1) A nationally coordinated network of regional coastal ocean
observing systems that measure and disseminate a common set of ocean
observations and related products in a uniform manner and according to sound
scientific practice, but that are adapted to local and regional
needs.
(2) Ocean sensors for climate observations, including the Arctic
Ocean and sub-polar seas.
(3) Coastal, relocatable, and cabled sea floor
observatories.
(4) Broad bandwidth communications that are capable of transmitting
high volumes of data from open ocean locations at low cost and in real
time.
(5) Ocean data management and assimilation systems that ensure full
use of new sources of data from space-borne and in situ sensors.
(6) Focused research programs.
(7) Technology development program to develop new observing
technologies and techniques, including data management and
dissemination.
(8) Public outreach and education.
SEC. 1352. AUTHORIZATION OF APPROPRIATIONS.
For development and implementation of an integrated ocean and coastal
observation system under this title, including financial assistance to
regional coastal ocean observing systems, there are authorized to be
appropriated $235,000,000 in fiscal year 2003, $315,000,000 in fiscal year
2004, $390,000,000 in fiscal year 2005, and $445,000,000 in fiscal year
2006.
Subtitle E--Climate Change Technology
SEC. 1361. NIST GREENHOUSE GAS FUNCTIONS.
Section 2(c) of the National Institute of Standards and Technology Act
(15 U.S.C. 272(c)) is amended--
(1) by striking `and' after the semicolon in paragraph
(21);
(2) by redesignating paragraph (22) as paragraph (23);
and
(3) by inserting after paragraph (21) the following:
`(22) perform research to develop enhanced measurements,
calibrations, standards, and technologies which will enable the reduced
production in the United States of greenhouse gases associated with global
warming, including carbon dioxide, methane, nitrous oxide, ozone,
perfluorocarbons, hydrofluorocarbons, and sulfur hexafluoride;
and'.
SEC. 1362. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.
The Secretary of Commerce shall initiate a program to develop, with
technical assistance from appropriate Federal agencies, innovative standards
and measurement technologies (including technologies to measure carbon changes
due to changes in land use cover) to calculate--
(1) greenhouse gas emissions and reductions from agriculture,
forestry, and other land use practices;
(2) noncarbon dioxide greenhouse gas emissions from
transportation;
(3) greenhouse gas emissions from facilities or sources using remote
sensing technology; and
(4) any other greenhouse gas emission or reductions for which no
accurate or reliable measurement technology exists.
SEC. 1363. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.
The National Institute of Standards and Technology Act (15 U.S.C. 271
et seq.) is amended--
(1) by redesignating sections 17 through 32 as sections 18 through
33, respectively; and
(2) by inserting after section 16 the following:
`SEC. 17. CLIMATE CHANGE STANDARDS AND PROCESSES.
`(a) In General- The Director shall establish within the Institute a
program to perform and support research on global climate change standards and
processes, with the goal of providing scientific and technical knowledge
applicable to the reduction of greenhouse gases (as defined in section 4 of
the Global Climate Change Act of 2002).
`(1) In general- The Director is authorized to conduct, directly or
through contracts or grants, a global climate change standards and processes
research program.
`(2) Research projects- The specific contents and priorities of the
research program shall be determined in consultation with appropriate
Federal agencies, including the Environmental Protection Agency, the
National Oceanic and Atmospheric Administration, and the National
Aeronautics and Space Administration. The program generally shall include
basic and applied research--
`(A) to develop and provide the enhanced measurements,
calibrations, data, models, and reference material standards which will
enable the monitoring of greenhouse gases;
`(B) to assist in establishing a baseline reference point for
future trading in greenhouse gases and the measurement of progress in
emissions reduction;
`(C) that will be exchanged internationally as scientific or
technical information which has the stated purpose of developing mutually
recognized measurements, standards, and procedures for reducing greenhouse
gases; and
`(D) to assist in developing improved industrial processes
designed to reduce or eliminate greenhouse gases.
`(c) National Measurement Laboratories-
`(1) In general- In carrying out this section, the Director shall
utilize the collective skills of the National Measurement Laboratories of
the National Institute of Standards and Technology to improve the accuracy
of measurements that will permit better understanding and control of these
industrial chemical processes and result in the reduction or elimination of
greenhouse gases.
`(2) Material, process, and building research- The National
Measurement Laboratories shall conduct research under this subsection that
includes--
`(A) developing material and manufacturing processes which are
designed for energy efficiency and reduced greenhouse gas emissions into
the environment;
`(B) developing environmentally-friendly, `green' chemical
processes to be used by industry; and
`(C) enhancing building performance with a focus in developing
standards or tools which will help incorporate low- or no-emission
technologies into building designs.
`(3) Standards and tools- The National Measurement Laboratories
shall develop standards and tools under this subsection that include
software to assist designers in selecting alternate building materials,
performance data on materials, artificial intelligence-aided design
procedures for building subsystems and `smart buildings', and improved test
methods and rating procedures for evaluating the energy performance of
residential and commercial appliances and products.
`(d) National Voluntary Laboratory Accreditation Program- The Director
shall utilize the National Voluntary Laboratory Accreditation Program under
this section to establish a program to include specific calibration or test
standards and related methods and protocols assembled to satisfy the unique
needs for accreditation in measuring the production of greenhouse gases. In
carrying out this subsection the Director may cooperate with other departments
and agencies of the Federal Government, State and local governments, and
private organizations.'.
SEC. 1364. TECHNOLOGY DEVELOPMENT AND DIFFUSION.
The Director of the National Institute of Standards and Technology,
through the Manufacturing Extension Partnership Program, may develop a program
to support the implementation of new `green' manufacturing technologies and
techniques by the more than 380,000 small manufacturers.
SEC. 1365. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Director to carry out
functions pursuant to sections 1345, 1351, and 1361 through 1363, $10,000,000
for fiscal years 2002 through 2006.
Subtitle F--Climate Adaptation and Hazards
Prevention
PART I--ASSESSMENT AND ADAPTATION
SEC. 1371. REGIONAL CLIMATE ASSESSMENT AND ADAPTATION PROGRAM.
(a) IN GENERAL- The President shall establish within the Department of
Commerce a National Climate Change Vulnerability and Adaptation Program for
regional impacts related to increasing concentrations of greenhouse gases in
the atmosphere and climate variability.
(b) COORDINATION- In designing such program the Secretary shall
consult with the Federal Emergency Management Agency, the Environmental
Protection Agency, the Army Corps of Engineers, the Department of
Transportation, and other appropriate Federal, State, and local government
entities.
(c) VULNERABILITY ASSESSMENTS- The program shall--
(1) evaluate, based on predictions and other information developed
under this Act and the National Climate Program Act (15 U.S.C. 2901 et
seq.), regional vulnerability to phenomena associated with climate change
and climate variability, including--
(A) increases in severe weather events;
(B) sea level rise and shifts in the hydrological
cycle;
(C) natural hazards, including tsunami, drought, flood and fire;
and
(D) alteration of ecological communities, including at the
ecosystem or watershed levels; and
(2) build upon predictions and other information developed in the
National Assessments prepared under the Global Change Research Act of 1990
(15 U.S.C. 2921 et seq.).
(d) PREPAREDNESS RECOMMENDATIONS- The program shall submit a report to
Congress within 2 years after the date of enactment of this Act that
identifies and recommends implementation and funding strategies for short- and
long-term actions that may be taken at the national, regional, State, and
local level--
(1) to reduce vulnerability of human life and property;
(2) to improve resilience to hazards;
(3) to minimize economic impacts; and
(4) to reduce threats to critical biological and ecological
processes.
(e) INFORMATION AND TECHNOLOGY- The Secretary shall make available
appropriate information and other technologies and products that will assist
national, regional, State, and local efforts, as well as efforts by other
end-users, to reduce loss of life and property, and coordinate dissemination
of such technologies and products.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Commerce $4,500,000 to implement the
requirements of this section.
SEC. 1372. COASTAL VULNERABILITY AND ADAPTATION.
(a) COASTAL VULNERABILITY- Within 2 years after the date of enactment
of this Act, the Secretary shall, in consultation with the appropriate
Federal, State, and local governmental entities, conduct regional assessments
of the vulnerability of coastal areas to hazards associated with climate
change, climate variability, sea level rise, and fluctuation of Great Lakes
water levels. The Secretary may also establish, as warranted, longer term
regional assessment programs. The Secretary may also consult with the
governments of Canada and Mexico as appropriate in developing such regional
assessments. In preparing the regional assessments, the Secretary shall
collect and compile current information on climate change, sea level rise,
natural hazards, and coastal erosion and mapping, and specifically address
impacts on Arctic regions and the Central, Western, and South Pacific regions.
The regional assessments shall include an evaluation of--
(1) social impacts associated with threats to and potential losses
of housing, communities, and infrastructure;
(2) physical impacts such as coastal erosion, flooding and loss of
estuarine habitat, saltwater intrusion of aquifers and saltwater
encroachment, and species migration; and
(3) economic impact on local, State, and regional economies,
including the impact on abundance or distribution of economically important
living marine resources.
(b) COASTAL ADAPTATION PLAN- The Secretary shall, within 3 years after
the date of enactment of this Act, submit to the Congress a national coastal
adaptation plan, composed of individual regional adaptation plans that
recommend targets and strategies to address coastal impacts associated with
climate change, sea level rise, or climate variability. The plan shall be
developed with the participation of other Federal, State, and local government
agencies that will be critical in the implementation of the plan at the State
and local levels. The regional plans that will make up the national coastal
adaptation plan shall be based on the information contained in the regional
assessments and shall identify special needs associated with Arctic areas and
the Central, Western, and South Pacific regions. The Plan shall recommend both
short- and long-term adaptation strategies and shall include recommendations
regarding--
(1) Federal flood insurance program modifications;
(2) areas that have been identified as high risk through mapping and
assessment;
(3) mitigation incentives such as rolling easements, strategic
retreat, State or Federal acquisition in fee simple or other interest in
land, construction standards, and zoning;
(4) land and property owner education;
(5) economic planning for small communities dependent upon affected
coastal resources, including fisheries; and
(6) funding requirements and mechanisms.
(c) TECHNICAL PLANNING ASSISTANCE- The Secretary, through the National
Ocean Service, shall establish a coordinated program to provide technical
planning assistance and products to coastal States and local governments as
they develop and implement adaptation or mitigation strategies and plans.
Products, information, tools and technical expertise generated from the
development of the regional assessments and the regional adaptation plans will
be made available to coastal States for the purposes of developing their own
State and local plans.
(d) COASTAL ADAPTATION GRANTS- The Secretary shall provide grants of
financial assistance to coastal States with federally approved coastal zone
management programs to develop and begin implementing coastal adaptation
programs if the State provides a Federal-to-State match of 4 to 1 in the first
fiscal year, 2.3 to 1 in the second fiscal year, 2 to 1 in the third fiscal
year, and 1 to 1 thereafter. Distribution of these funds to coastal States
shall be based upon the formula established under section 306(c) of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1455(c)), adjusted in
consultation with the States as necessary to provide assistance to
particularly vulnerable coastlines.
(e) COASTAL RESPONSE PILOT PROGRAM-
(1) IN GENERAL- The Secretary shall establish a 4-year pilot program
to provide financial assistance to coastal communities most adversely
affected by the impact of climate change or climate variability that are
located in States with federally approved coastal zone management
programs.
(2) ELIGIBLE PROJECTS- A project is eligible for financial
assistance under the pilot program if it--
(A) will restore or strengthen coastal resources, facilities, or
infrastructure that have been damaged by such an impact, as determined by
the Secretary;
(B) meets the requirements of the Coastal Zone Management Act (16
U.S.C. 1451 et seq.) and is consistent with the coastal zone management
plan of the State in which it is located; and
(C) will not cost more than $100,000.
(3) FUNDING SHARE- The Federal funding share of any project under
this subsection may not exceed 75 percent of the total cost of the project.
In the administration of this paragraph--
(A) the Secretary may take into account in-kind contributions and
other noncash support of any project to determine the Federal funding
share for that project; and
(B) the Secretary may waive the requirements of this paragraph for
a project in a community if--
(i) the Secretary determines that the project is important;
and
(ii) the economy and available resources of the community in
which the project is to be conducted are insufficient to meet the
non-Federal share of the project's costs.
(f) DEFINITIONS- Any term used in this section that is defined in
section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453) has
the meaning given it by that section.
(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated $3,000,000 annually for regional assessments under subsection
(a), and $3,000,000 annually for coastal adaptation grants under subsection
(d).
SEC. 1373. ARCTIC RESEARCH CENTER.
(a) ESTABLISHMENT- The Secretary of Commerce, in consultation with the
Secretaries of Energy and the Interior, the Director of the National Science
Foundation, and the Administrator of the Environmental Protection Agency,
shall establish a joint research facility, to be known as the Barrow Arctic
Research Center, to support climate change and other scientific research
activities in the Arctic.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretaries of Commerce, Energy, and the Interior, the
Director of the National Science Foundation, and the Administrator of the
Environmental Protection Agency, $35,000,000 for the planning, design,
construction, and support of the Barrow Arctic Research Center.
PART II--FORECASTING AND PLANNING PILOT PROGRAMS
SEC. 1381. REMOTE SENSING PILOT PROJECTS.
(a) IN GENERAL- The Administrator of the National Aeronautics and
Space Administration may establish, through the National Oceanic and
Atmospheric Administration's Coastal Services Center, a program of grants for
competitively awarded pilot projects to explore the integrated use of sources
of remote sensing and other geospatial information to address State, local,
regional, and tribal agency needs to forecast a plan for adaptation to coastal
zone and land use changes that may result as a consequence of global climate
change or climate variability.
(b) PREFERRED PROJECTS- In awarding grants under this section, the
Center shall give preference to projects that--
(1) focus on areas that are most sensitive to the consequences of
global climate change or climate variability;
(2) make use of existing public or commercial data sets;
(3) integrate multiple sources of geospatial information, such as
geographic information system data, satellite-provided positioning data, and
remotely sensed data, in innovative ways;
(4) offer diverse, innovative approaches that may serve as models
for establishing a future coordinated framework for planning strategies for
adaptation to coastal zone and land use changes related to global climate
change or climate variability;
(5) include funds or in-kind contributions from non-Federal
sources;
(6) involve the participation of commercial entities that process
raw or lightly processed data, often merging that data with other geospatial
information, to create data products that have significant value added to
the original data; and
(7) taken together demonstrate as diverse a set of public sector
applications as possible.
(c) OPPORTUNITIES- In carrying out this section, the Center shall seek
opportunities to assist--
(1) in the development of commercial applications potentially
available from the remote sensing industry; and
(2) State, local, regional, and tribal agencies in applying remote
sensing and other geospatial information technologies for management and
adaptation to coastal and land use consequences of global climate change or
climate variability.
(d) DURATION- Assistance for a pilot project under subsection (a)
shall be provided for a period of not more than 3 years.
(e) RESPONSIBILITIES OF GRANTEES- Within 180 days after completion of
a grant project, each recipient of a grant under subsection (a) shall transmit
a report to the Center on the results of the pilot project and conduct at
least one workshop for potential users to disseminate the lessons learned from
the pilot project as widely as feasible.
(f) REGULATIONS- The Center shall issue regulations establishing
application, selection, and implementation procedures for pilot projects, and
guidelines for reports and workshops required by this section.
SEC. 1382. DATABASE ESTABLISHMENT.
The Center shall establish and maintain an electronic,
Internet-accessible database of the results of each pilot project completed
under section 1381.
SEC. 1383. AIR QUALITY RESEARCH, FORECASTS AND WARNINGS.
(a) REGIONAL STUDIES- The Secretary of Commerce, through the
Administrator of the National Oceanographic and Atmospheric Administration,
shall, in order of priority as listed in section (c), conduct regional studies
of the air quality within specific regions of the United States. Such studies
should assess the effects of in situ emissions of air pollutants and their
precursors, transport of such emissions and precursors from outside the
region, and production of air pollutants within the region via chemical
reactions.
(b) FORECASTS AND WARNINGS- The Secretary of Commerce, through the
Administrator of the National Oceanographic and Atmospheric Administration,
shall, in order of priority as listed in section (c), establish a program to
provide operational air quality forecasts and warnings for specific regions of
the United States.
(c) DEFINITION- For the purposes of this section, the term `specific
regions of the United States' means the following geographical areas:
(1) the Northeast, composed of Main, New Hampshire, Vermont,
Massachusetts, Rhode Island, Connecticut, New York, New Jersey,
Pennsylvania, Maryland, Delaware, the District of Columbia, and West
Virginia;
(2) the Southeast, composed of Virginia, North Carolina, South
Carolina, Georgia, Alabama, and Florida;
(3) the Midwest, composed of Minnesota, Wisconsin, Iowa, Missouri,
Illinois, Kentucky, Indiana, Ohio, and Michigan;
(4) the South, composed of Tennessee, Mississippi, Louisiana,
Arkansas, Oklahoma, and Texas;
(5) the High Plains, composed of North Dakota, South Dakota,
Nebraska, and Kansas;
(6) the Northwest, composed of Washington, Oregon, Idaho, Montana,
and Wyoming;
(7) the Southwest, composed of California, Nevada, Utah, Colorado,
Arizona, and New Mexico;
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Commerce $3,000,000 for each of fiscal years
2003 through 2006 for studies pursuant to subsection (b) of this section, and
$5,000,000 for fiscal year 2003 and such sums as may be necessary for
subsequent fiscal years for the forecast and warning program pursuant to
subsection (c) of this section.
SEC. 1384. DEFINITIONS.
(1) CENTER- The term `Center' means the Coastal Services Center of
the National Oceanic and Atmospheric Administration.
(2) GEOSPATIAL INFORMATION- The term `geospatial information' means
knowledge of the nature and distribution of physical and cultural features
on the landscape based on analysis of data from airborne or spaceborne
platforms or other types and sources of data.
(3) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
education' has the meaning given that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
SEC. 1385. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator to carry
out the provisions of this subtitle--
(1) $17,500,000 for fiscal year 2003;
(2) $20,000,000 for fiscal year 2004;
(3) $22,500,000 for fiscal year 2005; and
(4) $25,000,000 for fiscal year 2006.
TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY
PROGRAMS
SEC. 1401. DEFINITIONS.
(1) APPLICABILITY OF DEFINITIONS- The definitions in section 1203
shall apply.
(2) SINGLE-PURPOSE RESEARCH FACILITY- The term `single-purpose
research facility' means any of the following primarily single purpose
entities owned by the Department of Energy--
(B) East Tennessee Technology Park;
(C) Environmental Measurement Laboratory;
(D) Fernald Environmental Management Project;
(E) Fermi National Accelerator Laboratory;
(H) New Brunswick Laboratory;
(I) Pantex Weapons Facility;
(J) Princeton Plasma Physics Laboratory;
(K) Savannah River Technology Center;
(L) Stanford Linear Accelerator Center;
(M) Thomas Jefferson National Accelerator Facility;
(N) Y-12 facility at Oak Ridge National Laboratory;
(O) Waste Isolation Pilot Plant; or
(P) other similar organization of the Department designated by the
Secretary that engages in technology transfer, partnering, or licensing
activities.
SEC. 1402. AVAILABILITY OF FUNDS.
Funds authorized to be appropriated to the Department of Energy under
title XII, title XIII, and title XV shall remain available until
expended.
SEC. 1403. COST SHARING.
(a) RESEARCH AND DEVELOPMENT- For research and development projects
funded from appropriations authorized under subtitles A through D of title
XII, the Secretary shall require a commitment from non-Federal sources of at
least 20 percent of the cost of the project. The Secretary may reduce or
eliminate the non-Federal requirement under this subsection if the Secretary
determines that the research and development is of a basic or fundamental
nature.
(b) DEMONSTRATION AND DEPLOYMENT- For demonstration and technology
deployment activities funded from appropriations authorized under subtitles A
through D of title XII, the Secretary shall require a commitment from
non-Federal sources of at least 50 percent of the costs of the project
directly and specifically related to any demonstration or technology
deployment activity. The Secretary may reduce or eliminate the non-Federal
requirement under this subsection if the Secretary determines that the
reduction is necessary and appropriate considering the technological risks
involved in the project and is necessary to meet one or more goals of this
title.
(c) CALCULATION OF AMOUNT- In calculating the amount of the
non-Federal commitment under subsection (a) or (b), the Secretary shall
include cash, personnel, services, equipment, and other resources.
SEC. 1404. MERIT REVIEW OF PROPOSALS.
Awards of funds authorized under title XII, subtitle A of title XIII,
and title XV shall be made only after an independent review of the scientific
and technical merit of the proposals for such awards has been made by the
Department of Energy.
SEC. 1405. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.
(a) NATIONAL ENERGY RESEARCH AND DEVELOPMENT ADVISORY BOARDS- (1) The
Secretary shall establish an advisory board to oversee Department research and
development programs in each of the following areas--
(E) climate change technology, with emphasis on integration,
collaboration, and other special features of the cross-cutting technologies
supported by the Office of Climate Change Technology.
(2) The Secretary may designate an existing advisory board within the
Department to fulfill the responsibilities of an advisory board under this
subsection, or may enter into appropriate arrangements with the National
Academy of Sciences to establish such an advisory board.
(b) UTILIZATION OF EXISTING COMMITTEES- The Secretary of Energy shall
continue to use the scientific program advisory committees chartered under the
Federal Advisory Committee Act by the Office of Science to oversee research
and development programs under that Office.
(c) MEMBERSHIP- Each advisory board under this section shall consist
of experts drawn from industry, academia, Federal laboratories, research
institutions, or State, local, or tribal governments, as appropriate.
(d) MEETINGS AND PURPOSES- Each advisory board under this section
shall meet at least semi-annually to review and advise on the progress made by
the respective research, development, demonstration, and technology deployment
program. The advisory board shall also review the adequacy and relevance of
the goals established for each program by Congress and the President, and may
otherwise advise on promising future directions in research and development
that should be considered by each program.
SEC. 1406. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND
TECHNOLOGY PROGRAMS.
(a) EFFECTIVE TOP-LEVEL COORDINATION OF RESEARCH AND DEVELOPMENT
PROGRAMS- Section 202(b) of the Department of Energy Organization Act (42
U.S.C. 7132(b)) is amended to read as follows:
`(b)(1) There shall be in the Department an Under Secretary for Energy
and Science, who shall be appointed by the President, by and with the advice
and consent of the Senate. The Under Secretary shall be compensated at the
rate provided for at level III of the Executive Schedule under section 5314 of
title 5, United States Code.
`(2) The Under Secretary for Energy and Science shall be appointed
from among persons who--
`(A) have extensive background in scientific or engineering fields;
and
`(B) are well qualified to manage the civilian research and
development programs of the Department of Energy.
`(3) The Under Secretary for Energy and Science shall--
`(A) serve as the Science and Technology Advisor to the
Secretary;
`(B) monitor the Department's research and development programs in
order to advise the Secretary with respect to any undesirable duplication or
gaps in such programs;
`(C) advise the Secretary with respect to the well-being and
management of the multipurpose laboratories under the jurisdiction of the
Department;
`(D) advise the Secretary with respect to education and training
activities required for effective short- and long-term basic and applied
research activities of the Department;
`(E) advise the Secretary with respect to grants and other forms of
financial assistance required for effective short- and long-term basic and
applied research activities of the Department; and
`(F) exercise authority and responsibility over Assistant
Secretaries carrying out energy research and development and energy
technology functions under sections 203 and 209, as well as other elements
of the Department assigned by the Secretary.'.
(b) RECONFIGURATION OF POSITION OF DIRECTOR OF THE OFFICE OF SCIENCE-
Section 209 of the Department of Energy Organization Act (41 U.S.C. 7139) is
amended to read as follows:
`(a) There shall be within the Department an Office of Science, to be
headed by an Assistant Secretary of Science, who shall be appointed by the
President, by and with the advice and consent of the Senate, and who shall be
compensated at the rate provided for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
`(b) The Assistant Secretary of Science shall be in addition to the
Assistant Secretaries provided for under section 203 of this Act.
`(c) It shall be the duty and responsibility of the Assistant
Secretary of Science to carry out the fundamental science and engineering
research functions of the Department, including the responsibility for policy
and management of such research, as well as other functions vested in the
Secretary which he may assign to the Assistant Secretary.'.
(c) ADDITIONAL ASSISTANT SECRETARY POSITION TO ENABLE IMPROVED
MANAGEMENT OF NUCLEAR ENERGY ISSUES-
(1) Section 203(a) of the Department of Energy Organization Act (42
U.S.C. 7133(a)) is amended by striking `There shall be in the Department six
Assistant Secretaries' and inserting `Except as provided in section 209,
there shall be in the Department seven Assistant Secretaries'.
(2) It is the sense of the Senate that the leadership for
departmental missions in nuclear energy should be at the Assistant Secretary
level.
(d) TECHNICAL AND CONFORMING AMENDMENTS-
(1) Section 202 of the Department of Energy Organization Act (42
U.S.C. 7132) is further amended by adding the following at the
end:
`(d) There shall be in the Department an Under Secretary, who shall be
appointed by the President, by and with the advice and consent of the Senate,
and who shall perform such functions and duties as the Secretary shall
prescribe, consistent with this section. The Under Secretary shall be
compensated at the rate provided for level III of the Executive Schedule under
section 5314 of title 5, United States Code.
`(e) There shall be in the Department a General Counsel, who shall be
appointed by the President, by and with the advice and consent of the Senate.
The General Counsel shall be compensated at the rate provided for level IV of
the Executive Schedule under section 5315 of title 5, United States
Code.'.
(2) Section 5314 of title 5, United States Code, is amended by
striking `Under Secretaries of Energy (2)' and inserting `Under Secretaries
of Energy (3)'.
(3) Section 5315 of title 5, United States Code, is amended
by--
(A) striking `Director, Office of Science, Department of Energy.';
and
(B) striking `Assistant Secretaries of Energy (6)' and inserting
`Assistant Secretaries of Energy (8)'.
(4) The table of contents for the Department of Energy Organization
Act (42 U.S.C. 7101 note) is amended--
(A) by striking `Section 209' and inserting `Sec.
209';
(B) by striking `213.' and inserting `Sec. 213.';
(C) by striking `214.' and inserting `Sec. 214.';
(D) by striking `215.' and inserting `Sec. 215.';
and
(E) by striking `216.' and inserting `Sec. 216.'.
SEC. 1407. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER
ACTIVITIES.
(a) TECHNOLOGY TRANSFER COORDINATOR- The Secretary shall appoint a
Technology Transfer Coordinator to perform oversight of and policy development
for technology transfer activities at the Department. The Technology Transfer
Coordinator shall coordinate the activities of the Technology Partnerships
Working Group, and shall oversee the expenditure of funds allocated to the
Technology Partnership Working Group.
(b) TECHNOLOGY PARTNERSHIP WORKING GROUP- The Secretary shall
establish a Technology Partnership Working Group, which shall consist of
representatives of the National Laboratories and single-purpose research
facilities, to--
(1) coordinate technology transfer activities occurring at National
Laboratories and single-purpose research facilities;
(2) exchange information about technology transfer practices;
and
(3) develop and disseminate to the public and prospective technology
partners information about opportunities and procedures for technology
transfer with the Department.
SEC. 1408. TECHNOLOGY INFRASTRUCTURE PROGRAM.
(a) ESTABLISHMENT- The Secretary shall establish a Technology
Infrastructure Program in accordance with this section.
(b) PURPOSE- The purpose of the Technology Infrastructure Program
shall be to improve the ability of National Laboratories or single-purpose
research facilities to support departmental missions by--
(1) stimulating the development of technology clusters that can
support departmental missions at the National Laboratories or single-purpose
research facilities;
(2) improving the ability of National Laboratories or single-purpose
research facilities to leverage and benefit from commercial research,
technology, products, processes, and services; and
(3) encouraging the exchange of scientific and technological
expertise between National Laboratories or single-purpose research
facilities and--
(A) institutions of higher education,
(B) technology-related business concerns,
(C) nonprofit institutions, and
(D) agencies of State, tribal, or local governments,
that can support departmental missions at the National Laboratories
and single-purpose research facilities.
(c) PROJECTS- The Secretary shall authorize the Director of each
National Laboratory or facility to implement the Technology Infrastructure
Program at such National Laboratory or single-purpose research facility
through projects that meet the requirements of subsections (d) and
(e).
(d) PROGRAM REQUIREMENTS- Each project funded under this section shall
meet the following requirements:
(1) MINIMUM PARTICIPANTS- Each project shall at a minimum
include--
(A) a National Laboratory or single-purpose research facility;
and
(B) one of the following entities--
(ii) an institution of higher education,
(iii) a nonprofit institution, or
(iv) an agency of a State, local, or tribal
government.
(A) MINIMUM AMOUNT- Not less than 50 percent of the costs of each
project funded under this section shall be provided from non-Federal
sources.
(B) QUALIFIED FUNDING AND RESOURCES- (i) The calculation of costs
paid by the non-Federal sources to a project shall include cash,
personnel, services, equipment, and other resources expended on the
project.
(ii) Independent research and development expenses of Government
contractors that qualify for reimbursement under section 31-205-18(e) of
the Federal Acquisition Regulations issued pursuant to section 25(c)(1) of
the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)(1)) may be
credited towards costs paid by non-Federal sources to a project, if the
expenses meet the other requirements of this section.
(iii) No funds or other resources expended either before the start
of a project under this section or outside the project's scope of work
shall be credited toward the costs paid by the non-Federal sources to the
project.
(3) COMPETITIVE SELECTION- All projects in which a party other than
the Department, a National Laboratory, or a single-purpose research facility
receives funding under this section shall, to the extent practicable, be
competitively selected by the National Laboratory or facility using
procedures determined to be appropriate by the Secretary.
(4) ACCOUNTING STANDARDS- Any participant that receives funds under
this section, other than a National Laboratory or single-purpose research
facility, may use generally accepted accounting principles for maintaining
accounts, books, and records relating to the project.
(5) LIMITATIONS- No Federal funds shall be made available under this
section for--
(B) any project for more than 5 years.
(1) THRESHOLD FUNDING CRITERIA- The Secretary shall allocate funds
under this section only if the Director of the National Laboratory or
single-purpose research facility managing the project determines that the
project is likely to improve the ability of the National Laboratory or
single-purpose research facility to achieve technical success in meeting
departmental missions.
(2) ADDITIONAL CRITERIA- The Secretary shall require the Director of
the National Laboratory or single-purpose research facility managing a
project under this section to consider the following criteria in selecting a
project to receive Federal funds--
(A) the potential of the project to succeed, based on its
technical merit, team members, management approach, resources, and project
plan;
(B) the potential of the project to promote the development of a
commercially sustainable technology cluster, which will derive most of the
demand for its products or services from the private sector, and which
will support departmental missions at the participating National
Laboratory or single-purpose research facility;
(C) the potential of the project to promote the use of commercial
research, technology, products, processes, and services by the
participating National Laboratory or single-purpose research facility to
achieve its departmental mission or the commercial development of
technological innovations made at the participating National Laboratory or
single-purpose research facility;
(D) the commitment shown by non-Federal organizations to the
project, based primarily on the nature and amount of the financial and
other resources they will risk on the project;
(E) the extent to which the project involves a wide variety and
number of institutions of higher education, nonprofit institutions, and
technology-related business concerns that can support the missions of the
participating National Laboratory or single-purpose research facility and
that will make substantive contributions to achieving the goals of the
project;
(F) the extent of participation in the project by agencies of
State, tribal, or local governments that will make substantive
contributions to achieving the goals of the project;
(G) the extent to which the project focuses on promoting the
development of technology-related business concerns that are small
business concerns or involves such small business concerns substantively
in the project; and
(H) such other criteria as the Secretary determines to be
appropriate.
(f) REPORT TO CONGRESS- Not later than January 1, 2004, the Secretary
shall report to Congress on whether the Technology Infrastructure Program
should be continued and, if so, how the program should be managed.
(g) DEFINITIONS- In this section:
(1) TECHNOLOGY CLUSTER- The term `technology cluster' means a
concentration of--
(A) technology-related business concerns;
(B) institutions of higher education; or
(C) other nonprofit institutions;
that reinforce each other's performance in the areas of technology
development through formal or informal relationships.
(2) TECHNOLOGY-RELATED BUSINESS CONCERN- The term
`technology-related business concern' means a for-profit corporation,
company, association, firm, partnership, or small business concern
that--
(A) conducts scientific or engineering research,
(B) develops new technologies,
(C) manufactures products based on new technologies,
or
(D) performs technological services.
(h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary for activities under this section $10,000,000
for each of fiscal years 2003 and 2004.
SEC. 1409. SMALL BUSINESS ADVOCACY AND ASSISTANCE.
(a) SMALL BUSINESS ADVOCATE- The Secretary shall require the Director
of each National Laboratory, and may require the Director of a single-purpose
research facility, to appoint a small business advocate to--
(1) increase the participation of small business concerns, including
socially and economically disadvantaged small business concerns, in
procurement, collaborative research, technology licensing, and technology
transfer activities conducted by the National Laboratory or single-purpose
research facility;
(2) report to the Director of the National Laboratory or
single-purpose research facility on the actual participation of small
business concerns in procurement and collaborative research along with
recommendations, if appropriate, on how to improve participation;
(3) make available to small business concerns training, mentoring,
and clear, up-to-date information on how to participate in the procurement
and collaborative research, including how to submit effective
proposals;
(4) increase the awareness inside the National Laboratory or
single-purpose research facility of the capabilities and opportunities
presented by small business concerns; and
(5) establish guidelines for the program under subsection (b) and
report on the effectiveness of such program to the Director of the National
Laboratory or single-purpose research facility.
(b) ESTABLISHMENT OF SMALL BUSINESS ASSISTANCE PROGRAM- The Secretary
shall require the Director of each National Laboratory, and may require the
director of a single-purpose research facility, to establish a program to
provide small business concerns--
(1) assistance directed at making them more effective and efficient
subcontractors or suppliers to the National Laboratory or single-purpose
research facility; or
(2) general technical assistance, the cost of which shall not exceed
$10,000 per instance of assistance, to improve the small business concern's
products or services.
(c) USE OF FUNDS- None of the funds expended under subsection (b) may
be used for direct grants to the small business concerns.
(d) DEFINITIONS- In this section:
(1) SMALL BUSINESS CONCERN- The term `small business concern' has
the meaning given such term in section 3 of the Small Business Act (15
U.S.C. 632).
(2) SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS CONCERNS-
The term `socially and economically disadvantaged small business concerns'
has the meaning given such term in section 8(a)(4) of the Small Business Act
(15 U.S.C. 637(a)(4)).
SEC. 1410. OTHER TRANSACTIONS.
(a) IN GENERAL- Section 646 of the Department of Energy Organization
Act (42 U.S.C. 7256) is amended by adding at the end the following:
`(g) OTHER TRANSACTIONS AUTHORITY- (1) In addition to other
authorities granted to the Secretary to enter into procurement contracts,
leases, cooperative agreements, grants, and other similar arrangements, the
Secretary may enter into other transactions with public agencies, private
organizations, or persons on such terms as the Secretary may deem appropriate
in furtherance of basic, applied, and advanced research functions now or
hereafter vested in the Secretary. Such other transactions shall not be
subject to the provisions of section 9 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5908).
`(2)(A) The Secretary of Energy shall ensure that--
`(i) to the maximum extent practicable, no transaction entered into
under paragraph (1) provides for research that duplicates research being
conducted under existing programs carried out by the Department of Energy;
and
`(ii) to the extent that the Secretary determines practicable, the
funds provided by the Government under a transaction authorized by paragraph
(1) do not exceed the total amount provided by other parties to the
transaction.
`(B) A transaction authorized by paragraph (1) may be used for a
research project when the use of a standard contract, grant, or cooperative
agreement for such project is not feasible or appropriate.
`(3)(A) The Secretary shall not disclose any trade secret or
commercial or financial information submitted by a non-Federal entity under
paragraph (1) that is privileged and confidential.
`(B) The Secretary shall not disclose, for 5 years after the date the
information is received, any other information submitted by a non-Federal
entity under paragraph (1), including any proposal, proposal abstract,
document supporting a proposal, business plan, or technical information that
is privileged and confidential.
`(C) The Secretary may protect from disclosure, for up to 5 years, any
information developed pursuant to a transaction under paragraph (1) that would
be protected from disclosure under section 552(b)(4) of title 5, United States
Code, if obtained from a person other than a Federal agency.'.
(b) IMPLEMENTATION- Not later than 6 months after the date of
enactment of this section, the Department shall establish guidelines for the
use of other transactions.
SEC. 1411. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.
Not later than 2 years after the enactment of this section, the
Secretary, acting through the Technology Transfer Coordinator under section
1407, shall determine whether each contractor operating a National Laboratory
or single-purpose research facility has policies and procedures that do not
create disincentives to the transfer of scientific and technical personnel
among the contractor-operated National Laboratories or contractor-operated
single-purpose research facilities.
SEC. 1412. NATIONAL ACADEMY OF SCIENCES REPORT.
Within 90 days after the date of enactment of this Act, the Secretary
shall contract with the National Academy of Sciences to--
(1) conduct a study on the obstacles to accelerating the innovation
cycle for energy technology, and
(2) report to the Congress recommendations for shortening the cycle
of research, development, and deployment.
SEC. 1413. REPORT ON TECHNOLOGY READINESS AND BARRIERS TO TECHNOLOGY
TRANSFER.
(a) IN GENERAL- The Secretary, acting through the Technology
Partnership Working Group and in consultation with representatives of affected
industries, universities, and small business concerns, shall--
(1) assess the readiness for technology transfer of energy
technologies developed through projects funded from appropriations
authorized under subtitles A through D of title XIV, and
(2) identify barriers to technology transfer and cooperative
research and development agreements between the Department or a National
Laboratory and a non-Federal person; and
(3) make recommendations for administrative or legislative actions
needed to reduce or eliminate such barriers.
(b) REPORT- The Secretary shall provide a report to Congress and the
President on activities carried out under this section not later than 1 year
after the date of enactment of this section, and shall update such report on a
biennial basis, taking into account progress toward eliminating barriers to
technology transfer identified in previous reports under this section.
SEC. 1414. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.
(a) FINDING- Congress finds that the economic and energy security of
the United States and Mexico is furthered through collaboration between the
United States and Mexico on research related to energy technologies.
(1) IN GENERAL- The Secretary, acting through the Assistant
Secretary for Environmental Management, shall establish a collaborative
research, development, and deployment program to promote energy efficient,
environmentally sound economic development along the United States-Mexico
border to--
(A) mitigate hazardous waste;
(B) promote energy efficient materials processing technologies
that minimize environmental damage; and
(C) protect the public health.
(2) CONSULTATION- The Secretary, acting through the Assistant
Secretary for Environmental Management, shall consult with the Office of
Energy Efficiency and Renewable Energy in carrying out paragraph
(1)(B).
(c) PROGRAM MANAGEMENT- The program under subsection (b) shall be
managed by the Department of Energy Carlsbad Environmental Management Field
Office.
(d) COST SHARING- The cost of any project or activity carried out
using funds provided under this section shall be shared as provided in section
1403.
(e) TECHNOLOGY TRANSFER- In carrying out projects and activities under
this section to mitigate hazardous waste, the Secretary shall emphasize the
transfer of technology developed under the Environmental Management Science
Program of the Department of Energy.
(f) INTELLECTUAL PROPERTY- In carrying out this section, the Secretary
shall comply with the requirements of any agreement entered between the United
States and Mexico regarding intellectual property protection.
(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section $5,000,000 for fiscal year 2003 and
$6,000,000 for each of fiscal years 2004 through 2006, to remain available
until expended.
TITLE XV--PERSONNEL AND TRAINING
SEC. 1501. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.
(1) MONITORING- The Secretary of Energy (in this title referred to
as the `Secretary'), acting through the Administrator of the Energy
Information Administration, in consultation with the Secretary of Labor,
shall monitor trends in the workforce of skilled technical personnel
supporting energy technology industries, including renewable energy
industries, companies developing and commercializing devices to increase
energy-efficiency, the oil and gas industry, the electric power generation
industry (including the nuclear power industry), the coal industry, and
other industrial sectors as the Secretary may deem appropriate.
(2) ANNUAL REPORTS- The Administrator of the Energy Information
Administration shall include statistics on energy industry workforce trends
in the annual reports of the Energy Information Administration.
(3) SPECIAL REPORTS- The Secretary shall report to the appropriate
committees of Congress whenever the Secretary determines that significant
shortfalls of technical personnel in one or more energy industry segments
are forecast or have occurred.
(b) TRAINEESHIP GRANTS FOR TECHNICALLY SKILLED PERSONNEL-
(1) GRANT PROGRAMS- The Secretary shall establish grant programs in
the appropriate offices of the Department to enhance training of technically
skilled personnel for which a shortfall is determined under subsection
(a).
(2) ELIGIBLE INSTITUTIONS- As determined by the Secretary to be
appropriate to the particular workforce shortfall, the Secretary shall make
grants under paragraph (1) to--
(A) an institution of higher education;
(B) a postsecondary educational institution providing vocational
and technical education (within the meaning given those terms in section 3
of the Carl D. Perkins Vocational and Technical Education Act of 1998 (20
U.S.C. 2302));
(C) appropriate agencies of State, local, or tribal governments;
or
(D) joint labor and management training organizations with State
or federally recognized apprenticeship programs and other employee-based
training organizations as the Secretary considers
appropriate.
(c) DEFINITION- For purposes of this section, the term `skilled
technical personnel' means journey and apprentice level workers who are
enrolled in or have completed a State or federally recognized apprenticeship
program and other skilled workers in energy technology industries.
(d) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1241(c), there are authorized to be appropriated to the Secretary for
activities under this section such sums as may be necessary for each fiscal
year.
SEC. 1502. POSTDOCTORAL AND SENIOR RESEARCH FELLOWSHIPS IN ENERGY
RESEARCH.
(a) POSTDOCTORAL FELLOWSHIPS- The Secretary shall establish a program
of fellowships to encourage outstanding young scientists and engineers to
pursue postdoctoral research appointments in energy research and development
at institutions of higher education of their choice. In establishing a program
under this subsection, the Secretary may enter into appropriate arrangements
with the National Academy of Sciences to help administer the program.
(b) DISTINGUISHED SENIOR RESEARCH FELLOWSHIPS- The Secretary shall
establish a program of fellowships to allow outstanding senior researchers in
energy research and development and their research groups to explore research
and development topics of their choosing for a fixed period of time. Awards
under this program shall be made on the basis of past scientific or technical
accomplishment and promise for continued accomplishment during the period of
support, which shall not be less than 3 years.
(c) AUTHORIZATION OF APPROPRIATIONS- From amounts authorized under
section 1241(c), there are authorized to be appropriated to the Secretary for
activities under this section such sums as may be necessary for each fiscal
year.
SEC. 1503. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY
PERSONNEL.
(a) MODEL GUIDELINES- The Secretary shall, in cooperation with
electric generation, transmission, and distribution companies and recognized
representatives of employees of those entities, develop model employee
training guidelines to support electric supply system reliability and
safety.
(b) CONTENT OF GUIDELINES- The guidelines under this section shall
include--
(1) requirements for worker training, competency, and certification,
developed using criteria set forth by the Utility Industry Group recognized
by the National Skill Standards Board; and
(2) consolidation of existing guidelines on the construction,
operation, maintenance, and inspection of electric supply generation,
transmission and distribution facilities such as those established by the
National Electric Safety Code and other industry consensus
standards.
SEC. 1504. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING
TECHNOLOGIES.
The Secretary shall establish 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. The National
Center shall be established in cooperation with--
(1) recognized representatives of employees in the heating,
ventilation, and air-conditioning industry;
(2) contractors that install and maintain heating, ventilation and
air-conditioning systems and equipment;
(3) manufacturers of heating, ventilation and air-conditioning
systems and equipment;
(4) representatives of the advanced building envelope industry,
including design, windows, lighting, and insulation industries;
and
(5) other entities as appropriate.
SEC. 1505. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL
CAREERS.
(a) DEPARTMENT OF ENERGY SCIENCE EDUCATION PROGRAMS- Section 3164 of
the Department of Energy Science Education Enhancement Act (42 U.S.C. 7381a)
is amended by adding at the end the following:
`(c) PROGRAMS FOR WOMEN AND MINORITY STUDENTS- In carrying out a
program under subsection (a), the Secretary shall give priority to activities
that are designed to encourage women and minority students to pursue
scientific and technical careers.'.
(b) PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND UNIVERSITIES,
HISPANIC-SERVICING INSTITUTIONS, AND TRIBAL COLLEGES- The Department of Energy
Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is
amended--
(1) by redesignating sections 3167 and 3168 as sections 3168 and
3169, respectively; and
(2) by inserting after section 3166 the following:
`SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND TRIBAL COLLEGES.
`(a) DEFINITIONS- In this section:
`(1) HISPANIC-SERVING INSTITUTION- The term `Hispanic-serving
institution' has the meaning given the term in section 502(a) of the Higher
Education Act of 1965 (20 U.S.C. 1101a(a)).
`(2) HISTORICALLY BLACK COLLEGE OR UNIVERSITY- The term
`historically Black college or university' has the meaning given the term
`part B institution' in section 322 of the Higher Education Act of 1965 (20
U.S.C. 1061).
`(3) NATIONAL LABORATORY- The term `National Laboratory' has the
meaning given the term in section 1203 of the Energy Science and Technology
Enhancement Act of 2002.
`(4) SCIENCE FACILITY- The term `science facility' has the meaning
given the term `single-purpose research facility' in section 1401 of the
Energy Science and Technology Enhancement Act of 2002.
`(5) TRIBAL COLLEGE- The term `tribal college' has the meaning given
the term `tribally controlled college or university' in section 2(a) of the
Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C.
1801(a)).
`(b) EDUCATION PARTNERSHIP-
`(1) IN GENERAL- The Secretary shall direct the Director of each
National Laboratory, and may direct the head of any science facility, to
increase the participation of historically Black colleges or universities,
Hispanic-serving institutions, or tribal colleges in activities that
increase the capacity of the historically Black colleges or universities,
Hispanic-serving institutions, or tribal colleges to train personnel in
science or engineering.
`(2) ACTIVITIES- An activity under paragraph (1) may
include--
`(A) collaborative research;
`(B) a transfer of equipment;
`(C) training of personnel at a National Laboratory or science
facility; and
`(D) a mentoring activity by personnel at a National Laboratory or
science facility.
`(c) REPORT- Not later than 2 years after the date of enactment of
this section, the Secretary shall submit to the Committee on Science of the
House of Representatives and the Committee on Energy and Natural Resources of
the Senate a report on the activities carried out under this
section.'.
SEC. 1506. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATION
CENTER.
(a) ESTABLISHMENT- The Secretary shall establish a National Power
Plant Operations Technology and Education Center (the `Center'), to address
the need for training and educating certified operators for electric power
generation plants.
(b) ROLE- The Center shall provide both training and continuing
education relating to electric power generation plant technologies and
operations. The Center shall conduct training and education activities on site
and through Internet-based information technologies that allow for learning at
remote sites.
(c) CRITERIA FOR COMPETITIVE SELECTION- The Secretary shall establish
the Center at an institution of higher education with expertise in plant
technology and operation and that can provide on-site as well as
Internet-based training.
SEC. 1507. FEDERAL MINE INSPECTORS.
In light of projected retirements of Federal mine inspectors and the
need for additional personnel, the Secretary of Labor shall hire, train, and
deploy such additional skilled mine inspectors (particularly inspectors with
practical experience as a practical mining engineer) as necessary to ensure
the availability of skilled and experienced individuals and to maintain the
number of Federal mine inspectors at or above the levels authorized by law or
established by regulation.
DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES
TITLE XVI--TECHNOLOGY ASSESSMENT
SEC. 1601. NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT SERVICE.
The National Science and Technology Policy, Organization, and
Priorities Act of 1976 (42 U.S.C. 6601 et seq.) is amended by adding at the
end the following:
`TITLE VII--NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT
SERVICE
`SEC. 701. ESTABLISHMENT.
`There is hereby created a Science and Technology Assessment Service
(hereinafter referred to as the `Service'), which shall be within and
responsible to the legislative branch of the Government.
`SEC. 702. COMPOSITION.
`The Service shall consist of a Science and Technology Board
(hereinafter referred to as the `Board') which shall formulate and promulgate
the policies of the Service, and a Director who shall carry out such policies
and administer the operations of the Service.
`SEC. 703. FUNCTIONS AND DUTIES.
`The Service shall coordinate and develop information for Congress
relating to the uses and application of technology to address current national
science and technology policy issues. In developing such technical assessments
for Congress, the Service shall utilize, to the extent practicable, experts
selected in coordination with the National Research Council.
`SEC. 704. INITIATION OF ACTIVITIES.
`Science and technology assessment activities undertaken by the
Service may be initiated upon the request of--
`(1) the Chairman of any standing, special, or select committee of
either House of the Congress, or of any joint committee of the Congress,
acting for himself or at the request of the ranking minority member or a
majority of the committee members;
`SEC. 705. ADMINISTRATION AND SUPPORT.
`The Director of the Science and Technology Assessment Service shall
be appointed by the Board and shall serve for a term of 6 years unless sooner
removed by the Board. The Director shall receive basic pay at the rate
provided for level III of the Executive Schedule under section 5314 of title
5, United States Code. The Director shall contract for administrative support
from the Library of Congress.
`SEC. 706. AUTHORITY.
`The Service shall have the authority, within the limits of available
appropriations, to do all things necessary to carry out the provisions of this
section, including, but without being limited to, the authority to--
`(1) make full use of competent personnel and organizations outside
the Office, public or private, and form special ad hoc task forces or make
other arrangements when appropriate;
`(2) enter into contracts or other arrangements as may be necessary
for the conduct of the work of the Office with any agency or instrumentality
of the United States, with any State, territory, or possession or any
political subdivision thereof, or with any person, firm, association,
corporation, or educational institution, with or without reimbursement,
without performance or other bonds, and without regard to section 3709 of
the Revised Statutes (41 U.S.C. 51);
`(3) accept and utilize the services of voluntary and uncompensated
personnel necessary for the conduct of the work of the Service and provide
transportation and subsistence as authorized by section 5703 of title 5,
United States Code, for persons serving without compensation; and
`(4) prescribe such rules and regulations as it deems necessary
governing the operation and organization of the Service.
`SEC. 707. BOARD.
`The Board shall consist of 13 members as follows--
`(1) six Members of the Senate, appointed by the President pro
tempore of the Senate, three from the majority party and three from the
minority party;
`(2) six Members of the House of Representatives appointed by the
Speaker of the House of Representatives, three from the majority party and
three from the minority party; and
`(3) the Director, who shall not be a voting member.
`SEC. 708. REPORT TO CONGRESS.
`The Service shall submit to the Congress an annual report which shall
include, but not be limited to, an evaluation of technology assessment
techniques and identification, insofar as may be feasible, of technological
areas and programs requiring future analysis. The annual report shall be
submitted not later than March 15 of each year.
`SEC. 709. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated to the Service such sums as
are necessary to fulfill the requirements of this title.'.
TITLE XVII--STUDIES
SEC. 1701. REGULATORY REVIEWS.
(a) REGULATORY REVIEWS- Not later than 1 year after the date of
enactment of this section and every 5 years thereafter, each Federal agency
shall review relevant regulations and standards to identify--
(1) existing regulations and standards that act as barriers
to--
(A) market entry for emerging energy technologies (including fuel
cells, combined heat and power, distributed power generation, and
small-scale renewable energy), and
(B) market development and expansion for existing energy
technologies (including combined heat and power, small-scale renewable
energy, geothermal heat pump technology, and energy recovery in industrial
processes), and
(2) actions the agency is taking or could take to--
(A) remove barriers to market entry for emerging energy
technologies and to market expansion for existing
technologies,
(B) increase energy efficiency and conservation, or
(C) encourage the use of new and existing processes to meet energy
and environmental goals.
(b) REPORT TO CONGRESS- Not later than 18 months after the date of
enactment of this section, and every 5 years thereafter, the Director of the
Office of Science and Technology Policy shall report to the Congress on the
results of the agency reviews conducted under subsection (a).
(c) CONTENTS OF THE REPORT- The report shall--
(1) identify all regulatory barriers to--
(A) the development and commercialization of emerging energy
technologies and processes, and
(B) the further development and expansion of existing energy
conservation technologies and processes,
(2) actions taken, or proposed to be taken, to remove such barriers,
and
(3) recommendations for changes in laws or regulations that may be
needed to--
(A) expedite the siting and development of energy production and
distribution facilities,
(B) encourage the adoption of energy efficiency and process
improvements,
(C) facilitate the expanded use of existing energy conservation
technologies, and
(D) reduce the environmental impacts of energy facilities and
processes through transparent and flexible compliance
methods.
SEC. 1702. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.
(a) ASSESSMENT- The Secretary of Energy shall assess the economic
implications of the dependence of the State of Hawaii on oil as the principal
source of energy for the State, including--
(1) the short- and long-term prospects for crude oil supply
disruption and price volatility and potential impacts on the economy of
Hawaii;
(2) the economic relationship between oil-fired generation of
electricity from residual fuel and refined petroleum products consumed for
ground, marine, and air transportation;
(3) the technical and economic feasibility of increasing the
contribution of renewable energy resources for generation of electricity, on
an island-by-island basis, including--
(A) siting and facility configuration;
(B) environmental, operational, and safety
considerations;
(C) the availability of technology;
(D) effects on the utility system, including
reliability;
(E) infrastructure and transport requirements;
(F) community support; and
(G) other factors affecting the economic impact of such an
increase and any effect on the economic relationship described in
paragraph (2);
(4) the technical and economic feasibility of using liquefied
natural gas to displace residual fuel oil for electric generation, including
neighbor island opportunities, and the effect of such displacement on the
economic relationship described in paragraph (2), including--
(A) the availability of supply;
(B) siting and facility configuration for onshore and offshore
liquefied natural gas receiving terminals;
(C) the factors described in subparagraphs (B) through (F) of
paragraph (3); and
(D) other economic factors;
(5) the technical and economic feasibility of using renewable energy
sources (including hydrogen) for ground, marine, and air transportation
energy applications to displace the use of refined petroleum products, on an
island-by-island basis, and the economic impact of such displacement on the
relationship described in paragraph (2); and
(6) an island-by-island approach to--
(A) the development of hydrogen from renewable resources;
and
(B) the application of hydrogen to the energy needs of
Hawaii.
(b) CONTRACTING AUTHORITY- The Secretary may carry out the assessment
under subsection (a) directly or, in whole or in part, through one or more
contracts with qualified public or private entities.
(c) REPORT- Not later than 300 days after the date of enactment of
this Act, the Secretary shall prepare, in consultation with agencies of the
State of Hawaii and other stakeholders, as appropriate, and submit to
Congress, a report detailing the findings, conclusions, and recommendations
resulting from the assessment.
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 1703. STUDY OF SITING AN ELECTRIC TRANSMISSION SYSTEM ON AMTRAK
RIGHT-OF-WAY.
(a) STUDY- The Secretary of Energy shall contract with Amtrak to
conduct a study of the feasibility of building and operating a new electric
transmission system on the Amtrak right-of-way in the Northeast
Corridor.
(b) SCOPE OF THE STUDY- The study shall focus on siting the new system
on the Amtrak right-of-way within the Northeast Corridor between Washington,
D.C., and New Rochelle, New York, including the Amtrak right-of-way between
Philadelphia, Pennsylvania and Harrisburg, Pennsylvania.
(c) CONTENTS OF THE STUDY- The study shall consider--
(1) alternative geographic configuration of a new electronic
transmission system on the Amtrak right-of-way;
(2) alternative technologies for the system;
(3) the estimated costs of building and operating each
alternative;
(4) alternative means of financing the system;
(5) the environmental risks and benefits of building and operating
each alternative as well as environmental risks and benefits of building and
operating the system on the Northeast Corridor rather than at other
locations;
(6) engineering and technological obstacles to building and
operating each alternative; and
(7) the extent to which each alternative would enhance the
reliability of the electric transmission grid and enhance competition in the
sale of electric energy at wholesale within the Northeast
Corridor.
(d) RECOMMENDATIONS- The study shall recommend the optimal geographic
configuration, the optimal technology, the optimal engineering design, and the
optimal means of financing for the new system from among the alternatives
considered.
(e) REPORT- The Secretary of Energy shall submit the completed study
to the Committee on Energy and Natural Resources of the United States Senate
and the Committee on Energy and Commerce of the House of Representatives not
later than 270 days after the date of enactment of this section.
(f) DEFINITIONS- For purposes of this section--
(1) the term `Amtrak' means the National Railroad Passenger
Corporation established under chapter 243 of title 49, United States Code;
and
(2) the term `Northeast Corridor' shall have the meaning given such
term under section 24102(7) of title 49, United States Code.
SEC. 1704. UPDATING OF INSULAR AREA RENEWABLE ENERGY AND ENERGY
EFFICIENCY PLANS.
Section 604 of Public Law 96-597 (48 U.S.C. 1492) is amended--
(1) in subsection (a) at the end of paragraph (4) by striking
`resources.' and inserting `resources; and
`(5) the development of renewable energy and energy efficiency
technologies since publication of the 1982 Territorial Energy Assessment
prepared under subsection (c) reveals the need to reassess the state of
energy production, consumption, efficiency, infrastructure, reliance on
imported energy, and potential of the indigenous renewable energy resources
and energy efficiency in regard to the insular areas.'; and
(2) by adding at the end of subsection (e) `The Secretary of Energy,
in consultation with the Secretary of the Interior and the chief executive
officer of each insular area, shall update the plans required under
subsection (c) and draft long-term energy plans for each insular area that
will reduce, to the extent feasible, the reliance of the insular area on
energy imports by the year 2010, and maximize, to the extent feasible, use
of renewable energy resources and energy efficiency opportunities. Not later
than December 31, 2002, the Secretary of Energy shall submit the updated
plans to Congress.'.
SEC. 1705. CONSUMER ENERGY COMMISSION.
(a) ESTABLISHMENT OF COMMISSION- There is established a commission to
be known as the `Consumer Energy Commission'.
(1) IN GENERAL- The Commission shall be comprised of 11 members who
shall be appointed within 30 days from the date of enactment of this section
and who shall serve for the life of the Commission.
(2) APPOINTMENTS IN THE SENATE AND THE HOUSE- The Majority Leader
and the Minority Leader of the Senate and the Speaker and Minority Leader of
the House of Representatives shall each appoint 2 members--
(A) one of whom shall represent consumer groups focusing on energy
issues; and
(B) one of whom shall represent the energy industry.
(3) APPOINTMENTS BY THE PRESIDENT- The President shall appoint three
members--
(A) one of whom shall represent consumer groups focusing on energy
issues;
(B) one of whom shall represent the energy industry;
and
(C) one of whom shall represent the Department of
Energy.
(c) INITIAL MEETING- Not later than 60 days after the date of
enactment of this Act, the Commission shall hold the first meeting of the
Commission regardless of the number of members that have been appointed and
shall select a Chairperson and Vice Chairperson from among the members of the
Commission.
(d) ADMINISTRATIVE EXPENSES- Members of the Commission shall serve
without compensation, except for per diem and travel expenses which shall be
reimbursed, and the Department of Energy shall pay expenses as necessary to
carry out this section, with the expenses not to exceed $400,000.
(e) STUDIES- The Commission shall conduct a nationwide study of
significant price spikes since 1990 in major United States consumer energy
products, including electricity, gasoline, home heating oil, natural gas and
propane with a focus on their causes including insufficient inventories,
supply disruptions, refinery capacity limits, insufficient infrastructure,
regulatory failures, demand growth, reliance on imported supplies,
insufficient availability of alternative energy sources, abuse of market
power, market concentration and any other relevant factors.
(f) REPORT- Not later than 180 days after the date of the first
meeting of the Commission, the Commission shall submit to Congress a report
that contains the findings and conclusions of the Commission and any
recommendations for legislation, administrative actions, and voluntary actions
by industry and consumers to protect consumers and small businesses from
future price spikes in consumer energy products.
(g) CONSULTATION- The Commission shall consult with the Federal Trade
Commission, the Federal Energy Regulatory Commission, the Department of Energy
and other Federal and State agencies as appropriate.
(h) SUNSET- The Commission shall terminate within 30 days after the
submission of the report to Congress.
SEC. 1706. STUDY OF NATURAL GAS AND OTHER ENERGY TRANSMISSION
INFRASTRUCTURE ACROSS THE GREAT LAKES.
(a) DEFINITIONS- In this section:
(1) GREAT LAKE- The term `Great Lake' means Lake Erie, Lake Huron
(including Lake Saint Clair), Lake Michigan, Lake Ontario (including the
Saint Lawrence River from Lake Ontario to the 45th parallel of latitude),
and Lake Superior.
(2) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(1) IN GENERAL- The Secretary, in consultation with representatives
of appropriate Federal and State agencies, shall--
(i) the location and extent of anticipated growth of natural gas
and other energy transmission infrastructure proposed to be constructed
across the Great Lakes; and
(ii) the environmental impacts of any natural gas or other
energy transmission infrastructure proposed to be constructed across the
Great Lakes; and
(B) make recommendations for minimizing the environmental impact
of pipelines and other energy transmission infrastructure on the Great
Lakes ecosystem.
(2) ADVISORY COMMITTEE- Not later than 30 days after the date of
enactment of this Act, the Secretary shall enter into an agreement with the
National Academy of Sciences to establish an advisory committee to ensure
that the study is complete, objective, and of good quality.
(c) REPORT- Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to Congress a report that describes the
findings and recommendations resulting from the study under subsection
(b).
SEC. 1707. NATIONAL ACADEMY OF SCIENCES STUDY OF PROCEDURES FOR
SELECTION AND ASSESSMENT OF CERTAIN ROUTES FOR SHIPMENT OF SPENT NUCLEAR FUEL
FROM RESEARCH NUCLEAR REACTORS.
(a) IN GENERAL- The Secretary of Transportation shall enter into an
agreement with the National Academy of Sciences under which agreement the
National Academy of Sciences shall conduct a study of the procedures by which
the Department of Energy, together with the Department of Transportation and
the Nuclear Regulatory Commission, selects routes for the shipment of spent
nuclear fuel from research nuclear reactors between or among existing
Department of Energy facilities currently licensed to accept such spent
nuclear fuel.
(b) ELEMENTS OF STUDY- In conducting the study under subsection (a),
the National Academy of Sciences shall analyze the manner in which the
Department of Energy--
(1) selects potential routes for the shipment of spent nuclear fuel
from research nuclear reactors between or among existing Department
facilities currently licensed to accept such spent nuclear fuel;
(2) selects such a route for a specific shipment of such spent
nuclear fuel; and
(3) conducts assessments of the risks associated with shipments of
such spent nuclear fuel along such a route.
(c) CONSIDERATIONS REGARDING ROUTE SELECTION- The analysis under
subsection (b) shall include a consideration whether, and to what extent, the
procedures analyzed for purposes of that subsection take into account the
following:
(1) The proximity of the routes under consideration to major
population centers and the risks associated with shipments of spent nuclear
fuel from research nuclear reactors through densely populated
areas.
(2) Current traffic and accident data with respect to the routes
under consideration.
(3) The quality of the roads comprising the routes under
consideration.
(4) Emergency response capabilities along the routes under
consideration.
(5) The proximity of the routes under consideration to places or
venues (including sports stadiums, convention centers, concert halls and
theaters, and other venues) where large numbers of people gather.
(d) RECOMMENDATIONS- In conducting the study under subsection (a), the
National Academy of Sciences shall also make such recommendations regarding
the matters studied as the National Academy of Sciences considers
appropriate.
(e) DEADLINE FOR DISPERSAL OF FUNDS FOR STUDY- The Secretary shall
disperse to the National Academy of Sciences the funds for the cost of the
study required by subsection (a) not later than 30 days after the date of the
enactment of this Act.
(f) REPORT ON RESULTS OF STUDY- Not later than 6 months after the date
of the dispersal of funds under subsection (e), the National Academy of
Sciences shall submit to the appropriate committees of Congress a report on
the study conducted under subsection (a), including the recommendations
required by subsection (d).
(g) APPROPRIATE COMMITTEES OF CONGRESS DEFINED- In this section, the
term `appropriate committees of Congress' means--
(1) the Committees on Commerce, Science, and Transportation, Energy
and Natural Resources, and Environment and Public Works of the Senate;
and
(2) the Committee on Energy and Commerce of the House of
Representatives.
SEC. 1708. REPORT ON ENERGY SAVINGS AND WATER USE.
(a) REPORT- The Secretary of Energy shall conduct a study of
opportunities to reduce energy use by cost-effective improvements in the
efficiency of municipal water and wastewater treatment and use, including
water pumps, motors, and delivery systems; purification, conveyance and
distribution; upgrading of aging water infrastructure, and improved methods
for leakage monitoring, measuring, and reporting; and public
education.
(b) SUBMISSION OF REPORT- The Secretary of Energy shall submit a
report on the results of the study, including any recommendations for
implementation of measures and estimates of costs and resource savings, no
later than 2 years from the date of enactment of this section.
(c) AUTHORIZATION- There is hereby authorized to be appropriated such
sums as may be necessary to carry out the purposes of this section.
SEC. 1709. REPORT ON RESEARCH ON HYDROGEN PRODUCTION AND USE.
Not later than 120 days after the date of enactment of this Act, the
Secretary of Energy shall submit to Congress a report that identifies current
or potential research projects at Department of Energy nuclear facilities
relating to the production or use of hydrogen in fuel cell development or any
other method or process enhancing alternative energy production
technologies.
DIVISION G--ENERGY INFRASTRUCTURE SECURITY
TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE
Subtitle A--Department of Energy Programs
SEC. 1801. DEFINITIONS.
(1) Critical energy infrastructure-
(A) IN GENERAL- The term `critical energy infrastructure' means a
physical or cyber-based system or service for--
(i) the generation, transmission or distribution of electric
energy; or
(ii) the production, refining, or storage of petroleum, natural
gas, or petroleum product--
the incapacity or destruction of which would have a debilitating
impact on the defense or economic security of the United
States.
(B) EXCLUSION- The term shall not include a facility that is
licensed by the Nuclear Regulatory Commission under section 103 or 104b.
of the Atomic Energy Act of 1954 (42 U.S.C. 2133 and
2134(b)).
(2) DEPARTMENT; NATIONAL LABORATORY; SECRETARY- The terms
`Department', `National Laboratory', and `Secretary' have the meaning given
such terms in section 1203.
SEC. 1802. ROLE OF THE DEPARTMENT OF ENERGY.
Section 102 of the Department of Energy Organization Act (42 U.S.C.
7112) is amended by adding at the end the following:
`(20) To ensure the safety, reliability, and security of the
Nation's energy infrastructure, and to respond to any threat to or
disruption of such infrastructure, through activities including--
`(A) research and development;
`(B) financial assistance, technical assistance, and cooperative
activities with States, industry, and other interested parties;
and
`(C) education and public outreach activities.'.
SEC. 1803. CRITICAL ENERGY INFRASTRUCTURE PROGRAMS.
(a) PROGRAMS- In addition to the authorities otherwise provided by law
(including section 1261), the Secretary is authorized to establish programs of
financial, technical, or administrative assistance to--
(1) enhance the security of critical energy infrastructure in the
United States;
(2) develop and disseminate, in cooperation with industry, best
practices for critical energy infrastructure assurance; and
(3) protect against, mitigate the effect of, and improve the ability
to recover from disruptive incidents affecting critical energy
infrastructure.
(b) REQUIREMENTS- A program established under this section
shall--
(1) be undertaken in consultation with the advisory committee
established under section 1804;
(2) have available to it the scientific and technical resources of
the Department, including resources at a National Laboratory; and
(3) be consistent with any overall Federal plan for national
infrastructure security developed by the President or his
designee.
SEC. 1804. ADVISORY COMMITTEE ON ENERGY INFRASTRUCTURE
SECURITY.
(a) ESTABLISHMENT- The Secretary shall establish an advisory
committee, or utilize an existing advisory committee within the Department, to
advise the Secretary on policies and programs related to the security of
United States energy infrastructure.
(b) BALANCED MEMBERSHIP- The Secretary shall ensure that the advisory
committee established or utilized under subsection (a) has a membership with
an appropriate balance among the various interests related to energy
infrastructure security, including--
(1) scientific and technical experts;
(3) worker representatives;
(4) insurance companies or organizations;
(5) environmental organizations;
(6) representatives of State, local, and tribal governments;
and
(7) such other interests as the Secretary may deem
appropriate.
(c) EXPENSES- Members of the advisory committee established or
utilized under subsection (a) shall serve without compensation, and shall be
allowed travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
committee.
SEC. 1805. BEST PRACTICES AND STANDARDS FOR ENERGY INFRASTRUCTURE
SECURITY.
The Secretary, in consultation with the advisory committee under
section 1804, shall enter into appropriate arrangements with one or more
standard-setting organizations, or similar organizations, to assist the
development of industry best practices and standards for security related to
protecting critical energy infrastructure.
Subtitle B--Department of the Interior Programs
SEC. 1811. OUTER CONTINENTAL SHELF ENERGY INFRASTRUCTURE
SECURITY.
(a) DEFINITIONS- In this section:
(1) APPROVED STATE PLAN- The term `approved State plan' means a
State plan approved by the Secretary under subsection (c)(3).
(2) COASTLINE- The term `coastline' has the same meaning as the term
`coast line' as defined in subsection 2(c) of the Submerged Lands Act (43
U.S.C. 1301(c)).
(3) CRITICAL OCS ENERGY INFRASTRUCTURE FACILITY- The term `OCS
critical energy infrastructure facility' means--
(A) a facility located in an OCS Production State or in the waters
of such State related to the production of oil or gas on the Outer
Continental Shelf; or
(B) a related facility located in an OCS Production State or in
the waters of such State that carries out a public service,
transportation, or infrastructure activity critical to the operation of an
Outer Continental Shelf energy infrastructure facility, as determined by
the Secretary.
(4) DISTANCE- The term `distance' means the minimum great circle
distance, measured in statute miles.
(A) IN GENERAL- The term `leased tract' means a tract
that--
(i) is subject to a lease under section 6 or 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1335, 1337) for the purpose of
drilling for, developing, and producing oil or natural gas resources;
and
(ii) consists of a block, a portion of a block, a combination of
blocks or portions of blocks, or a combination of portions of blocks,
as--
(I) specified in the lease; and
(II) depicted on an outer Continental Shelf official
protraction diagram.
(B) EXCLUSION- The term `leased tract' does not include a tract
described in subparagraph (A) that is located in a geographic area subject
to a leasing moratorium on January 1, 2001, unless the lease was in
production on that date.
(6) OCS POLITICAL SUBDIVISION- The term `OCS political subdivision'
means a county, parish, borough or any equivalent subdivision of an OCS
Production State all or part of which subdivision lies within the coastal
zone (as defined in section 304(1) of the Coastal Zone Management Act of
1972 (16 U.S.C. 1453(1)).
(7) OCS PRODUCTION STATE- The term `OCS Production State' means the
State of--
(8) PRODUCTION- The term `production' has the meaning given the term
in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C.
1331).
(9) PROGRAM- The term `program' means the Outer Continental Shelf
Energy Infrastructure Security Program established under subsection
(b).
(10) QUALIFIED OUTER CONTINENTAL SHELF REVENUES- The term `qualified
Outer Continental Shelf revenues' means all amounts received by the United
States from each leased tract or portion of a leased tract lying seaward of
the zone defined and governed by section 8(g) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.), or lying within such zone but to which
section 8(g) does not apply, the geographic center of which lies within a
distance of 200 miles from any part of the coastline of any State, including
bonus bids, rents, royalties (including payments for royalties taken in kind
and sold), net profit share payments, and related late payment interest.
Such term does not include any revenues from a leased tract or portion of a
leased tract that is included within any area of the Outer Continental Shelf
where a moratorium on new leasing was in effect as of January 1, 2001,
unless the lease was issued prior to the establishment of the moratorium and
was in production on January 1, 2001.
(11) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
(12) STATE PLAN- The term `State plan' means a State plan described
in subsection (b).
(b) ESTABLISHMENT- The Secretary shall establish a program, to be
known as the `Outer Continental Shelf Energy Infrastructure Security Program',
under which the Secretary shall provide funds to OCS Production States to
implement approved State plans to provide security against hostile and natural
threats to critical OCS energy infrastructure facilities and support of any
necessary public service or transportation activities that are needed to
maintain the safety and operation of critical energy infrastructure
activities. For purposes of this program, restoration of any coastal wetland
shall be considered to be an activity that secures critical OCS energy
infrastructure facilities from a natural threat.
(1) INITIAL PLAN- Not later than 180 days after the date of
enactment of this Act, to be eligible to receive funds under the program,
the Governor of an OCS Production State shall submit to the Secretary a plan
to provide security against hostile and natural threats to critical energy
infrastructure facilities in the OCS Production State and to support any of
the necessary public service or transportation activities that are needed to
maintain the safety and operation of critical energy infrastructure
facilities. Such plan shall include--
(A) the name of the State agency that will have the authority to
represent and act for the State in dealing with the Secretary for purposes
of this section;
(B) a program for the implementation of the plan which describes
how the amounts provided under this section will be used;
(C) a contact for each OCS political subdivision and description
of how such political subdivisions will use amounts provided under this
section, including a certification by the Governor that such uses are
consistent with the requirements of this section; and
(D) measures for taking into account other relevant Federal
resources and programs.
(2) ANNUAL REVIEWS- Not later than 1 year after the date of
submission of the plan and annually thereafter, the Governor of an OCS
Production State shall--
(A) review the approved State plan; and
(B) submit to the Secretary any revised State plan resulting from
the review.
(A) IN GENERAL- In consultation with appropriate Federal security
officials and the Secretaries of Commerce and Energy, the Secretary
shall--
(i) approve each State plan; or
(ii) recommend changes to the State plan.
(B) RESUBMISSION OF STATE PLANS- If the Secretary recommends
changes to a State plan under subparagraph (A)(ii), the Governor of the
OCS Production State may resubmit a revised State plan to the Secretary
for approval.
(4) AVAILABILITY OF PLANS- The Secretary shall provide to Congress a
copy of each approved State plan.
(5) Consultation and public comment-
(A) CONSULTATION- The Governor of an OCS Production State shall
develop the State plan in consultation with Federal, State, and local law
enforcement and public safety officials, industry, Indian tribes, the
scientific community, and other persons as appropriate.
(B) PUBLIC COMMENT- The Governor of an OCS Production State may
solicit public comments on the State plan to the extent that the Governor
determines to be appropriate.
(d) ALLOCATION OF AMOUNTS BY THE SECRETARY- The Secretary shall
allocate the amounts made available for the purposes of carrying out the
program provided for by this section among OCS Production States as
follows:
(1) twenty-five percent of the amounts shall be divided equally
among OCS Production States.
(2) seventy-five percent of the amounts shall be divided among OCS
Production States on the basis of the proximity of each OCS Production State
to offshore locations at which oil and gas are being produced.
(e) CALCULATION- The amount for each OCS Production State under
paragraph (d)(2) shall be calculated based on the ratio of qualified OCS
revenues generated off the coastline of the OCS Production State to the
qualified OCS revenues generated off the coastlines of all OCS Production
States for the prior 5-year period. Where there is more than one OCS
Production State within 200 miles of a leased tract, the amount of each OCS
Production State's payment under paragraph (d)(2) for such leased tract shall
be inversely proportional to the distance between the nearest point on the
coastline of such State and the geographic center of each leased tract or
portion of the leased tract (to the nearest whole mile) that is within 200
miles of that coastline, as determined by the Secretary. A leased tract or
portion of a leased tract shall be excluded if the tract or portion is located
in a geographic area where a moratorium on new leasing was in effect on
January 1, 2001, unless the lease was issued prior to the establishment of the
moratorium and was in production on January 1, 2001.
(f) PAYMENTS TO OCS POLITICAL SUBDIVISIONS- Thirty-five percent of
each OCS Production State's allocable share as determined under subsection (e)
shall be paid directly to the OCS political subdivisions by the Secretary
based on the following formula:
(1) twenty-five percent shall be allocated based on the ratio of
such OCS political subdivision's population to the population of all OCS
political subdivisions in the OCS Production State.
(2) twenty-five percent shall be allocated based on the ratio of
such OCS political subdivision's coastline miles to the coastline miles of
all OCS political subdivisions in the OCS Production State. For purposes of
this subsection, those OCS political subdivisions without coastlines shall
be considered to have a coastline that is the average length of the
coastlines of all political subdivisions in the State.
(3) fifty percent shall be allocated based on the relative distance
of such OCS political subdivision from any leased tract used to calculate
that OCS Production State's allocation using ratios that are inversely
proportional to the distance between the point in the coastal political
subdivision closest to the geographic center of each leased tract or
portion, as determined by the Secretary. For purposes of the calculations
under this subparagraph, a leased tract or portion of a leased tract shall
be excluded if the leased tract or portion is located in a geographic area
where a moratorium on new leasing was in effect on January 1, 2001, unless
the lease was issued prior to the establishment of the moratorium and was in
production on January 1, 2001.
(g) FAILURE TO HAVE PLAN APPROVED- Any amount allocated to an OCS
Production State or OCS political subdivision but not disbursed because of a
failure to have an approved Plan under this section shall be allocated equally
by the Secretary among all other OCS Production States in a manner consistent
with this subsection except that the Secretary shall hold in escrow such
amount until the final resolution of any appeal regarding the disapproval of a
plan submitted under this section. The Secretary may waive the provisions of
this paragraph and hold an OCS Production State's allocable share in escrow if
the Secretary determines that such State is making a good faith effort to
develop and submit, or update, a Plan.
(h) USE OF AMOUNTS ALLOCATED BY THE SECRETARY-
(1) IN GENERAL- Amounts allocated by the Secretary under subsection
(d) may be used only in accordance with a plan approved pursuant to
subsection (c) for--
(A) activities to secure critical OCS energy infrastructure
facilities from human or natural threats; and
(B) support of any necessary public service or transportation
activities that are needed to maintain the safety and operation of
critical OCS energy infrastructure facilities.
(2) RESTORATION OF COASTAL WETLAND- For the purpose of subparagraph
(1)(A), restoration of any coastal wetland shall be considered to be an
activity that secures critical OCS energy infrastructure facilities from a
natural threat.
(i) FAILURE TO HAVE USE- Any amount allocated to an OCS political
subdivision but not disbursed because of a failure to have a qualifying use as
described in subsection (h) shall be allocated by the Secretary to the OCS
Production State in which the OCS political subdivision is located except that
the Secretary shall hold in escrow such amount until the final resolution of
any appeal regarding the use of the funds.
(j) COMPLIANCE WITH AUTHORIZED USES- If the Secretary determines that
any expenditure made by an OCS Production State or an OCS political
subdivision is not consistent with the uses authorized in subsection (h), the
Secretary shall not disburse any further amounts under this section to that
OCS Production State or OCS political subdivision until the amounts used for
the inconsistent expenditure have been repaid or obligated for authorized
uses.
(k) RULEMAKING- The Secretary may promulgate such rules and
regulations as may be necessary to carry out the purposes of this section,
including rules and regulations setting forth an appropriate process for
appeals.
(l) AUTHORIZATION OF APPROPRIATIONS- There are hereby authorized to be
appropriated $450,000,000 for each of the fiscal years 2003 through 2008 to
carry out the purposes of this section.
DIVISION H--ENERGY TAX INCENTIVES
SEC. 1900. SHORT TITLE; ETC.
(a) SHORT TITLE- This division may be cited as the `Energy Tax
Incentives Act of 2002'.
(b) AMENDMENT OF 1986 CODE- Except as otherwise expressly provided,
whenever in this division an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
TITLE XIX--EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY
PRODUCTION TAX CREDIT
SEC. 1901. THREE-YEAR EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY FROM
WIND AND POULTRY WASTE.
(a) IN GENERAL- Subparagraphs (A) and (C) of section 45(c)(3)
(relating to qualified facility), as amended by section 603(a) of the Job
Creation and Worker Assistance Act of 2002, are each amended by striking
`January 1, 2004' and inserting `January 1, 2007'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 1902. CREDIT FOR ELECTRICITY PRODUCED FROM BIOMASS.
(a) EXTENSION AND MODIFICATION OF PLACED-IN-SERVICE RULES- Paragraph
(3) of section 45(c) is amended--
(1) by striking subparagraph (B) and inserting the following new
subparagraph:
`(B) CLOSED-LOOP BIOMASS FACILITY-
`(i) IN GENERAL- In the case of a facility using closed-loop
biomass to produce electricity, the term `qualified facility' means any
facility--
`(I) owned by the taxpayer which is originally placed in
service after December 31, 1992, and before January 1, 2007,
or
`(II) owned by the taxpayer which is originally placed in
service before January 1, 1993, and modified to use closed-loop
biomass to co-fire with coal before January 1, 2007, as approved under
the Biomass Power for Rural Development Programs or under a pilot
project of the Commodity Credit Corporation as described in 65 Fed.
Reg. 63052.
`(ii) SPECIAL RULES- In the case of a qualified facility
described in clause (i)(II)--
`(I) the 10-year period referred to in subsection (a) shall be
treated as beginning no earlier than the date of the enactment of this
subclause, and
`(II) if the owner of such facility is not the producer of the
electricity, the person eligible for the credit allowable under
subsection (a) is the lessee or the operator of such facility.',
and
(2) by adding at the end the following new subparagraph:
`(i) IN GENERAL- In the case of a facility using biomass (other
than closed-loop biomass) to produce electricity, the term `qualified
facility' means any facility owned by the taxpayer which is originally
placed in service before January 1, 2005.
`(ii) SPECIAL RULE FOR POSTEFFECTIVE DATE FACILITIES- In the
case of any facility described in clause (i) which is placed in service
after the date of the enactment of this clause, the 3-year period
beginning on the date the facility is originally placed in service shall
be substituted for the 10-year period in subsection
(a)(2)(A)(ii).
`(iii) SPECIAL RULES FOR PREEFFECTIVE DATE FACILITIES- In the
case of any facility described in clause (i) which is placed in service
before the date of the enactment of this clause--
`(I) subsection (a)(1) shall be applied by substituting `1.0
cents' for `1.5 cents', and
`(II) the 3-year period beginning after December 31, 2002,
shall be substituted for the 10-year period in subsection
(a)(2)(A)(ii).
`(iv) CREDIT ELIGIBILITY- In the case of any facility described
in clause (i), if the owner of such facility is not the producer of the
electricity, the person eligible for the credit allowable under
subsection (a) is the lessee or the operator of such
facility.'.
(b) DEFINITION OF BIOMASS-
(1) IN GENERAL- Section 45(c)(1) (defining qualified energy
resources) is amended--
(A) by striking `and' at the end of subparagraph
(B),
(B) by striking the period at the end of subparagraph (C) and
inserting `, and', and
(C) by adding at the end the following new
subparagraph:
`(D) biomass (other than closed-loop biomass).'.
(2) BIOMASS DEFINED- Section 45(c) (relating to definitions) is
amended by adding at the end the following new paragraph:
`(5) BIOMASS- The term `biomass' means any solid, nonhazardous,
cellulosic waste material which is segregated from other waste materials and
which is derived from--
`(A) any of the following forest-related resources: mill residues,
precommercial thinnings, slash, and brush, but not including old-growth
timber (other than old-growth timber which has been permitted or
contracted for removal by any appropriate Federal authority through the
National Environmental Policy Act or by any appropriate State
authority),
`(B) solid wood waste materials, including waste pallets, crates,
dunnage, manufacturing and construction wood wastes (other than
pressure-treated, chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, but not including municipal
solid waste (garbage), gas derived from the biodegradation of solid waste,
or paper that is commonly recycled, or
`(C) agriculture sources, including orchard tree crops, vineyard,
grain, legumes, sugar, and other crop by-products or
residues.'.
(c) COORDINATION WITH SECTION 29- Section 45(c) (relating to
definitions) is amended by adding at the end the following new
paragraph:
`(6) COORDINATION WITH SECTION 29- The term `qualified facility'
shall not include any facility the production from which is taken into
account in determining any credit under section 29 for the taxable year or
any prior taxable year.'.
(1) The heading for subsection (c) of section 45 is amended by
inserting `AND SPECIAL RULES' after `DEFINITIONS'.
(2) The heading for subsection (d) of section 45 is amended by
inserting `ADDITIONAL' before `DEFINITIONS'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments
made by this section shall apply to electricity sold after the date of the
enactment of this Act.
(2) CERTAIN BIOMASS FACILITIES- With respect to any facility
described in section 45(c)(3)(D)(i) of the Internal Revenue Code of 1986, as
added by this section, which is placed in service before the date of the
enactment of this Act, the amendments made by this section shall apply to
electricity sold after December 31, 2002.
SEC. 1903. CREDIT FOR ELECTRICITY PRODUCED FROM SWINE AND BOVINE WASTE
NUTRIENTS, GEOTHERMAL ENERGY, AND SOLAR ENERGY.
(a) EXPANSION OF QUALIFIED ENERGY RESOURCES-
(1) IN GENERAL- Section 45(c)(1) (defining qualified energy
resources), as amended by this Act, is amended by striking `and' at the end
of subparagraph (C), by striking the period at the end of subparagraph (D)
and inserting a comma, and by adding at the end the following new
subparagraphs:
`(E) swine and bovine waste nutrients,
`(F) geothermal energy, and
(2) DEFINITIONS- Section 45(c) (relating to definitions and special
rules), as amended by this Act, is amended by redesignating paragraph (6) as
paragraph (8) and by inserting after paragraph (5) the following new
paragraphs:
`(6) SWINE AND BOVINE WASTE NUTRIENTS- The term `swine and bovine
waste nutrients' means swine and bovine manure and litter, including bedding
material for the disposition of manure.
`(7) GEOTHERMAL ENERGY- The term `geothermal energy' means energy
derived from a geothermal deposit (within the meaning of section
613(e)(2)).'.
(b) EXTENSION AND MODIFICATION OF PLACED-IN-SERVICE RULES- Section
45(c)(3) (relating to qualified facility), as amended by this Act, is
amended by adding at the end the following new subparagraphs:
`(E) SWINE AND BOVINE WASTE NUTRIENTS FACILITY- In the case of a
facility using swine and bovine waste nutrients to produce electricity,
the term `qualified facility' means any facility owned by the taxpayer
which is originally placed in service after the date of the enactment of
this subparagraph and before January 1, 2007.
`(F) GEOTHERMAL OR SOLAR ENERGY FACILITY-
`(i) IN GENERAL- In the case of a facility using geothermal or
solar energy to produce electricity, the term `qualified facility' means
any facility owned by the taxpayer which is originally placed in service
after the date of the enactment of this clause and before January 1,
2007.
`(ii) SPECIAL RULE- In the case of any facility described in
clause (i), the 5-year period beginning on the date the facility was
originally placed in service shall be substituted for the 10-year period
in subsection (a)(2)(A)(ii).'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 1904. TREATMENT OF PERSONS NOT ABLE TO USE ENTIRE CREDIT.
(a) IN GENERAL- Section 45(d) (relating to additional definitions and
special rules), as amended by this Act, is amended by adding at the end the
following new paragraph:
`(8) TREATMENT OF PERSONS NOT ABLE TO USE ENTIRE CREDIT-
`(A) ALLOWANCE OF CREDIT-
`(i) IN GENERAL- Except as otherwise provided in this
subsection--
`(I) any credit allowable under subsection (a) with respect to
a qualified facility owned by a person described in clause (ii) may be
transferred or used as provided in this paragraph,
and
`(II) the determination as to whether the credit is allowable
shall be made without regard to the tax-exempt status of the
person.
`(ii) PERSONS DESCRIBED- A person is described in this clause if
the person is--
`(I) an organization described in section 501(c)(12)(C) and
exempt from tax under section 501(a),
`(II) an organization described in section
1381(a)(2)(C),
`(III) a public utility (as defined in section 136(c)(2)(B)),
which is exempt from income tax under this
subtitle,
`(IV) any State or political subdivision thereof, the District
of Columbia, any possession of the United States, or any agency or
instrumentality of any of the foregoing, or
`(V) any Indian tribal government (within the meaning of
section 7871) or any agency or instrumentality
thereof.
`(i) IN GENERAL- A person described in subparagraph (A)(ii) may
transfer any credit to which subparagraph (A)(i) applies through an
assignment to any other person not described in subparagraph (A)(ii).
Such transfer may be revoked only with the consent of the
Secretary.
`(ii) REGULATIONS- The Secretary shall prescribe such
regulations as necessary to ensure that any credit described in clause
(i) is claimed once and not reassigned by such other
person.
`(iii) TRANSFER PROCEEDS TREATED AS ARISING FROM ESSENTIAL
GOVERNMENT FUNCTION- Any proceeds derived by a person described in
subclause (III), (IV), or (V) of subparagraph (A)(ii) from the transfer
of any credit under clause (i) shall be treated as arising from the
exercise of an essential government function.
`(C) USE OF CREDIT AS AN OFFSET- Notwithstanding any other
provision of law, in the case of a person described in subclause (I),
(II), or (V) of subparagraph (A)(ii), any credit to which subparagraph
(A)(i) applies may be applied by such person, to the extent provided by
the Secretary of Agriculture, as a prepayment of any loan, debt, or other
obligation the entity has incurred under subchapter I of chapter 31 of
title 7 of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),
as in effect on the date of the enactment of the Energy Tax Incentives Act
of 2002.
`(D) CREDIT NOT INCOME- Any transfer under subparagraph (B) or use
under subparagraph (C) of any credit to which subparagraph (A)(i) applies
shall not be treated as income for purposes of section
501(c)(12).
`(E) TREATMENT OF UNRELATED PERSONS- For purposes of subsection
(a)(2)(B), sales among and between persons described in subparagraph
(A)(ii) shall be treated as sales between unrelated
parties.'.
(b) CREDITS NOT REDUCED BY TAX-EXEMPT BONDS OR CERTAIN OTHER
SUBSIDIES- Section 45(b)(3) (relating to credit reduced for grants, tax-exempt
bonds, subsidized energy financing, and other credits) is amended--
(1) by striking clause (ii),
(2) by redesignating clauses (iii) and (iv) as clauses (ii) and
(iii),
(3) by inserting `(other than any loan, debt, or other obligation
incurred under subchapter I of chapter 31 of title 7 of the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.), as in effect on the date
of the enactment of the Energy Tax Incentives Act of 2002)' after `project'
in clause (ii) (as so redesignated),
(4) by adding at the end the following new sentence: `This paragraph
shall not apply with respect to any facility described in subsection
(c)(3)(B)(i)(II).', and
(5) by striking `TAX-EXEMPT BONDS,' in the heading and inserting
`CERTAIN'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 1905. CREDIT FOR ELECTRICITY PRODUCED FROM SMALL IRRIGATION
POWER.
(a) IN GENERAL- Section 45(c)(1) (defining qualified energy
resources), as amended by this Act, is amended by striking `and' at the end of
subparagraph (F), by striking the period at the end of subparagraph (G) and
inserting `, and', and by adding at the end the following new
subparagraph:
`(H) small irrigation power.'.
(b) QUALIFIED FACILITY- Section 45(c)(3) (relating to qualified
facility), as amended by this Act, is amended by adding at the end the
following new subparagraph:
`(G) SMALL IRRIGATION POWER FACILITY- In the case of a facility
using small irrigation power to produce electricity, the term `qualified
facility' means any facility owned by the taxpayer which is originally
placed in service after date of the enactment of this subparagraph and
before January 1, 2007.'.
(c) DEFINITION- Section 45(c), as amended by this Act, is amended by
redesignating paragraph (8) as paragraph (9) and by inserting after paragraph
(7) the following new paragraph:
`(8) SMALL IRRIGATION POWER- The term `small irrigation power' means
power--
`(A) generated without any dam or impoundment of water through an
irrigation system canal or ditch, and
`(B) the installed capacity of which is less than 5
megawatts.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 1906. CREDIT FOR ELECTRICITY PRODUCED FROM MUNICIPAL BIOSOLIDS AND
RECYCLED SLUDGE.
(a) IN GENERAL- Section 45(c)(1) (defining qualified energy
resources), as amended by this Act, is amended by striking `and' at the end of
subparagraph (F), by striking the period at the end of subparagraph (G), and
by adding at the end the following new subparagraphs:
`(H) municipal biosolids, and
(b) QUALIFIED FACILITIES- Section 45(c)(3) (relating to qualified
facility), as amended by this Act, is amended by adding at the end the
following new subparagraphs:
`(G) MUNICIPAL BIOSOLIDS FACILITY- In the case of a facility using
municipal biosolids to produce electricity, the term `qualified facility'
means any facility owned by the taxpayer which is originally placed in
service after December 31, 2001, and before January 1, 2007.
`(H) RECYCLED SLUDGE FACILITY-
`(i) IN GENERAL- In the case of a facility using recycled sludge
to produce electricity, the term `qualified facility' means any facility
owned by the taxpayer which is originally placed in service before
January 1, 2007.
`(ii) SPECIAL RULE- In the case of a qualified facility
described in clause (i), the 10-year period referred to in subsection
(a) shall be treated as beginning no earlier than the date of the
enactment of this subparagraph.'.
(c) DEFINITIONS- Section 45(c), as amended by this Act, is amended by
redesignating paragraph (8) as paragraph (10) and by inserting after paragraph
(7) the following new paragraphs:
`(8) MUNICIPAL BIOSOLIDS- The term `municipal biosolids' means the
residue or solids removed by a municipal wastewater treatment
facility.
`(A) IN GENERAL- The term `recycled sludge' means the recycled
residue byproduct created in the treatment of commercial, industrial,
municipal, or navigational wastewater.
`(B) RECYCLED- The term `recycled' means the processing of residue
into a marketable product, but does not include incineration for the
purpose of volume reduction.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act, in taxable years
ending after such date.
TITLE XX--ALTERNATIVE MOTOR VEHICLES AND FUELS
INCENTIVES
SEC. 2001. ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.) is amended by adding at the end the
following new section:
`SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
`(a) ALLOWANCE OF CREDIT- There shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount equal to the
sum of--
`(1) the new qualified fuel cell motor vehicle credit determined
under subsection (b),
`(2) the new qualified hybrid motor vehicle credit determined under
subsection (c), and
`(3) the new qualified alternative fuel motor vehicle credit
determined under subsection (d).
`(b) NEW QUALIFIED FUEL CELL MOTOR VEHICLE CREDIT-
`(1) IN GENERAL- For purposes of subsection (a), the new qualified
fuel cell motor vehicle credit determined under this subsection with respect
to a new qualified fuel cell motor vehicle placed in service by the taxpayer
during the taxable year is--
`(A) $4,000, if such vehicle has a gross vehicle weight rating of
not more than 8,500 pounds,
`(B) $10,000, if such vehicle has a gross vehicle weight rating of
more than 8,500 pounds but not more than 14,000 pounds,
`(C) $20,000, if such vehicle has a gross vehicle weight rating of
more than 14,000 pounds but not more than 26,000 pounds, and
`(D) $40,000, if such vehicle has a gross vehicle weight rating of
more than 26,000 pounds.
`(2) INCREASE FOR FUEL EFFICIENCY-
`(A) IN GENERAL- The amount determined under paragraph (1)(A) with
respect to a new qualified fuel cell motor vehicle which is a passenger
automobile or light truck shall be increased by--
`(i) $1,000, if such vehicle achieves at least 150 percent but
less than 175 percent of the 2000 model year city fuel
economy,
`(ii) $1,500, if such vehicle achieves at least 175 percent but
less than 200 percent of the 2000 model year city fuel
economy,
`(iii) $2,000, if such vehicle achieves at least 200 percent but
less than 225 percent of the 2000 model year city fuel
economy,
`(iv) $2,500, if such vehicle achieves at least 225 percent but
less than 250 percent of the 2000 model year city fuel
economy,
`(v) $3,000, if such vehicle achieves at least 250 percent but
less than 275 percent of the 2000 model year city fuel
economy,
`(vi) $3,500, if such vehicle achieves at least 275 percent but
less than 300 percent of the 2000 model year city fuel economy,
and
`(vii) $4,000, if such vehicle achieves at least 300 percent of
the 2000 model year city fuel economy.
`(B) 2000 MODEL YEAR CITY FUEL ECONOMY- For purposes of
subparagraph (A), the 2000 model year city fuel economy with respect to a
vehicle shall be determined in accordance with the following
tables:
`(i) In the case of a passenger automobile:
The 2000 model year city
`If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs
43.7 mpg
2,000 lbs
38.3 mpg
2,250 lbs
34.1 mpg
2,500 lbs
30.7 mpg
2,750 lbs
27.9 mpg
3,000 lbs
25.6 mpg
3,500 lbs
22.0 mpg
4,000 lbs
19.3 mpg
4,500 lbs
17.2 mpg
5,000 lbs
15.5 mpg
5,500 lbs
14.1 mpg
6,000 lbs
12.9 mpg
6,500 lbs
11.9 mpg
7,000 to 8,500 lbs
11.1 mpg.
`(ii) In the case of a light truck:
The 2000 model year city
`If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs
37.6 mpg
2,000 lbs
33.7 mpg
2,250 lbs
30.6 mpg
2,500 lbs
28.0 mpg
2,750 lbs
25.9 mpg
3,000 lbs
24.1 mpg
3,500 lbs
21.3 mpg
4,000 lbs
19.0 mpg
4,500 lbs
17.3 mpg
5,000 lbs
15.8 mpg
5,500 lbs
14.6 mpg
6,000 lbs
13.6 mpg
6,500 lbs
12.8 mpg
7,000 to 8,500 lbs
12.0 mpg.
`(C) VEHICLE INERTIA WEIGHT CLASS- For purposes of subparagraph
(B), the term `vehicle inertia weight class' has the same meaning as when
defined in regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the administration of
title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
`(3) NEW QUALIFIED FUEL CELL MOTOR VEHICLE- For purposes of this
subsection, the term `new qualified fuel cell motor vehicle' means a motor
vehicle--
`(A) which is propelled by power derived from one or more cells
which convert chemical energy directly into electricity by combining
oxygen with hydrogen fuel which is stored on board the vehicle in any form
and may or may not require reformation prior to use,
`(B) which, in the case of a passenger automobile or light
truck--
`(i) for 2002 and later model vehicles, has received a
certificate of conformity under the Clean Air Act and meets or exceeds
the equivalent qualifying California low emission vehicle standard under
section 243(e)(2) of the Clean Air Act for that make and model year,
and
`(ii) for 2004 and later model vehicles, has received a
certificate that such vehicle meets or exceeds the Bin 5 Tier II
emission level established in regulations prescribed by the
Administrator of the Environmental Protection Agency under section
202(i) of the Clean Air Act for that make and model year
vehicle,
`(C) the original use of which commences with the
taxpayer,
`(D) which is acquired for use or lease by the taxpayer and not
for resale, and
`(E) which is made by a manufacturer.
`(c) NEW QUALIFIED HYBRID MOTOR VEHICLE CREDIT-
`(1) IN GENERAL- For purposes of subsection (a), the new qualified
hybrid motor vehicle credit determined under this subsection with respect to
a new qualified hybrid motor vehicle placed in service by the taxpayer
during the taxable year is the credit amount determined under paragraph
(2).
`(A) IN GENERAL- The credit amount determined under this paragraph
shall be determined in accordance with the following tables:
`(i) In the case of a new qualified hybrid motor vehicle which
is a passenger automobile or light truck and which provides the
following percentage of the maximum available power:
`If percentage of the maximum
available power is:
The credit amount is:
At least 5 percent but less than 10 percent
$250
At least 10 percent but less than 20 percent
$500
At least 20 percent but less than 30 percent
$750
At least 30 percent
$1,000.
`(ii) In the case of a new qualified hybrid motor vehicle which
is a heavy duty hybrid motor vehicle and which provides the following
percentage of the maximum available power:
`(I) If such vehicle has a gross vehicle weight rating of not
more than 14,000 pounds:
`If percentage of the maximum
available power is:
The credit amount is:
At least 20 percent but less than 30 percent
$1,000
At least 30 percent but less than 40 percent
$1,750
At least 40 percent but less than 50 percent
$2,000
At least 50 percent but less than 60 percent
$2,250
At least 60 percent
$2,500.
`(II) If such vehicle has a gross vehicle weight rating of
more than 14,000 but not more than 26,000 pounds:
`If percentage of the maximum
available power is:
The credit amount is:
At least 20 percent but less than 30 percent
$4,000
At least 30 percent but less than 40 percent
$4,500
At least 40 percent but less than 50 percent
$5,000
At least 50 percent but less than 60 percent
$5,500
At least 60 percent
$6,000.
`(III) If such vehicle has a gross vehicle weight rating of
more than 26,000 pounds:
`If percentage of the maximum
available power is:
The credit amount is:
At least 20 percent but less than 30 percent
$6,000
At least 30 percent but less than 40 percent
$7,000
At least 40 percent but less than 50 percent
$8,000
At least 50 percent but less than 60 percent
$9,000
At least 60 percent
$10,000.
`(B) INCREASE FOR FUEL EFFICIENCY-
`(i) AMOUNT- The amount determined under subparagraph (A)(i)
with respect to a new qualified hybrid motor vehicle which is a
passenger automobile or light truck shall be increased
by--
`(I) $500, if such vehicle achieves at least 125 percent but
less than 150 percent of the 2000 model year city fuel
economy,
`(II) $1,000, if such vehicle achieves at least 150 percent
but less than 175 percent of the 2000 model year city fuel
economy,
`(III) $1,500, if such vehicle achieves at least 175 percent
but less than 200 percent of the 2000 model year city fuel
economy,
`(IV) $2,000, if such vehicle achieves at least 200 percent
but less than 225 percent of the 2000 model year city fuel
economy,
`(V) $2,500, if such vehicle achieves at least 225 percent but
less than 250 percent of the 2000 model year city fuel economy,
and
`(VI) $3,000, if such vehicle achieves at least 250 percent of
the 2000 model year city fuel economy.
`(ii) 2000 MODEL YEAR CITY FUEL ECONOMY- For purposes of clause
(i), the 2000 model year city fuel economy with respect to a vehicle
shall be determined using the tables provided in subsection (b)(2)(B)
with respect to such vehicle.
`(C) INCREASE FOR ACCELERATED EMISSIONS PERFORMANCE- The amount
determined under subparagraph (A)(ii) with respect to an applicable heavy
duty hybrid motor vehicle shall be increased by the increased credit
amount determined in accordance with the following tables:
`(i) In the case of a vehicle which has a gross vehicle weight
rating of not more than 14,000 pounds:
`If the model year is:
The increased credit amount is:
2002
$3,500
2003
$3,000
2004
$2,500
2005
$2,000
2006
$1,500.
`(ii) In the case of a vehicle which has a gross vehicle weight
rating of more than 14,000 pounds but not more than 26,000
pounds:
`If the model year is:
The increased credit amount is:
2002
$9,000
2003
$7,750
2004
$6,500
2005
$5,250
2006
$4,000.
`(iii) In the case of a vehicle which has a gross vehicle weight
rating of more than 26,000 pounds:
`If the model year is:
The increased credit amount is:
2002
$14,000
2003
$12,000
2004
$10,000
2005
$8,000
2006
$6,000.
`(i) APPLICABLE HEAVY DUTY HYBRID MOTOR VEHICLE- For purposes of
subparagraph (C), the term `applicable heavy duty hybrid motor vehicle'
means a heavy duty hybrid motor vehicle which is powered by an internal
combustion or heat engine which is certified as meeting the emission
standards set in the regulations prescribed by the Administrator of the
Environmental Protection Agency for 2007 and later model year diesel
heavy duty engines, or for 2008 and later model year ottocycle heavy
duty engines, as applicable.
`(ii) HEAVY DUTY HYBRID MOTOR VEHICLE- For purposes of this
paragraph, the term `heavy duty hybrid motor vehicle' means a new
qualified hybrid motor vehicle which has a gross vehicle weight rating
of more than 10,000 pounds and draws propulsion energy from both of the
following onboard sources of stored energy:
`(I) An internal combustion or heat engine using consumable
fuel which, for 2002 and later model vehicles, has received a
certificate of conformity under the Clean Air Act and meets or exceeds
a level of not greater than 3.0 grams per brake horsepower-hour of
oxides of nitrogen and 0.01 per brake horsepower-hour of particulate
matter.
`(II) A rechargeable energy storage
system.
`(iii) MAXIMUM AVAILABLE POWER-
`(I) PASSENGER AUTOMOBILE OR LIGHT TRUCK- For purposes of
subparagraph (A)(i), the term `maximum available power' means the
maximum power available from the rechargeable energy storage system,
during a standard 10 second pulse power or equivalent test, divided by
such maximum power and the SAE net power of the heat
engine.
`(II) HEAVY DUTY HYBRID MOTOR VEHICLE- For purposes of
subparagraph (A)(ii), the term `maximum available power' means the
maximum power available from the rechargeable energy storage system,
during a standard 10 second pulse power or equivalent test, divided by
the vehicle's total traction power. The term `total traction power'
means the sum of the peak power from the rechargeable energy storage
system and the heat engine peak power of the vehicle, except that if
such storage system is the sole means by which the vehicle can be
driven, the total traction power is the peak power of such storage
system.
`(3) NEW QUALIFIED HYBRID MOTOR VEHICLE- For purposes of this
subsection, the term `new qualified hybrid motor vehicle' means a motor
vehicle--
`(A) which draws propulsion energy from onboard sources of stored
energy which are both--
`(i) an internal combustion or heat engine using combustible
fuel, and
`(ii) a rechargeable energy storage system,
`(B) which, in the case of a passenger automobile or light
truck--
`(i) for 2002 and later model vehicles, has received a
certificate of conformity under the Clean Air Act and meets or exceeds
the equivalent qualifying California low emission vehicle standard under
section 243(e)(2) of the Clean Air Act for that make and model year,
and
`(ii) for 2004 and later model vehicles, has received a
certificate that such vehicle meets or exceeds the Bin 5 Tier II
emission level established in regulations prescribed by the
Administrator of the Environmental Protection Agency under section
202(i) of the Clean Air Act for that make and model year
vehicle,
`(C) the original use of which commences with the
taxpayer,
`(D) which is acquired for use or lease by the taxpayer and not
for resale, and
`(E) which is made by a manufacturer.
`(d) NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE CREDIT-
`(1) ALLOWANCE OF CREDIT- Except as provided in paragraph (5), the
credit determined under this subsection is an amount equal to the applicable
percentage of the incremental cost of any new qualified alternative fuel
motor vehicle placed in service by the taxpayer during the taxable
year.
`(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the
applicable percentage with respect to any new qualified alternative fuel
motor vehicle is--
`(B) 30 percent, if such vehicle--
`(i) has received a certificate of conformity under the Clean
Air Act and meets or exceeds the most stringent standard available for
certification under the Clean Air Act for that make and model year
vehicle (other than a zero emission standard), or
`(ii) has received an order certifying the vehicle as meeting
the same requirements as vehicles which may be sold or leased in
California and meets or exceeds the most stringent standard available
for certification under the State laws of California (enacted in
accordance with a waiver granted under section 209(b) of the Clean Air
Act) for that make and model year vehicle (other than a zero emission
standard).
`(3) INCREMENTAL COST- For purposes of this subsection, the
incremental cost of any new qualified alternative fuel motor vehicle is
equal to the amount of the excess of the manufacturer's suggested retail
price for such vehicle over such price for a gasoline or diesel fuel motor
vehicle of the same model, to the extent such amount does not
exceed--
`(A) $5,000, if such vehicle has a gross vehicle weight rating of
not more than 8,500 pounds,
`(B) $10,000, if such vehicle has a gross vehicle weight rating of
more than 8,500 pounds but not more than 14,000 pounds,
`(C) $25,000, if such vehicle has a gross vehicle weight rating of
more than 14,000 pounds but not more than 26,000 pounds, and
`(D) $40,000, if such vehicle has a gross vehicle weight rating of
more than 26,000 pounds.
`(4) QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE DEFINED- For purposes
of this subsection--
`(A) IN GENERAL- The term `qualified alternative fuel motor
vehicle' means any motor vehicle--
`(i) which is only capable of operating on an alternative
fuel,
`(ii) the original use of which commences with the
taxpayer,
`(iii) which is acquired by the taxpayer for use or lease, but
not for resale, and
`(iv) which is made by a manufacturer.
`(B) ALTERNATIVE FUEL- The term `alternative fuel' means
compressed natural gas, liquefied natural gas, liquefied petroleum gas,
hydrogen, and any liquid at least 85 percent of the volume of which
consists of methanol.
`(5) CREDIT FOR MIXED-FUEL VEHICLES-
`(A) IN GENERAL- In the case of a mixed-fuel vehicle placed in
service by the taxpayer during the taxable year, the credit determined
under this subsection is an amount equal to--
`(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent of
the credit which would have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor vehicle,
and
`(ii) in the case of a 90/10 mixed-fuel vehicle, 90 percent of
the credit which would have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor vehicle.
`(B) MIXED-FUEL VEHICLE- For purposes of this subsection, the term
`mixed-fuel vehicle' means any motor vehicle described in subparagraph (C)
or (D) of paragraph (3), which--
`(i) is certified by the manufacturer as being able to perform
efficiently in normal operation on a combination of an alternative fuel
and a petroleum-based fuel,
`(I) has received a certificate of conformity under the Clean
Air Act, or
`(II) has received an order certifying the vehicle as meeting
the same requirements as vehicles which may be sold or leased in
California and meets or exceeds the low emission vehicle standard
under section 88.105-94 of title 40, Code of Federal Regulations, for
that make and model year vehicle,
`(iii) the original use of which commences with the
taxpayer,
`(iv) which is acquired by the taxpayer for use or lease, but
not for resale, and
`(v) which is made by a manufacturer.
`(C) 75/25 MIXED-FUEL VEHICLE- For purposes of this subsection,
the term `75/25 mixed-fuel vehicle' means a mixed-fuel vehicle which
operates using at least 75 percent alternative fuel and not more than 25
percent petroleum-based fuel.
`(D) 90/10 MIXED-FUEL VEHICLE- For purposes of this subsection,
the term `90/10 mixed-fuel vehicle' means a mixed-fuel vehicle which
operates using at least 90 percent alternative fuel and not more than 10
percent petroleum-based fuel.
`(e) APPLICATION WITH OTHER CREDITS- The credit allowed under
subsection (a) for any taxable year shall not exceed the excess (if any)
of--
`(1) the regular tax for the taxable year reduced by the sum of the
credits allowable under subpart A and sections 27, 29, and 30,
over
`(2) the tentative minimum tax for the taxable year.
`(f) OTHER DEFINITIONS AND SPECIAL RULES- For purposes of this
section--
`(1) CONSUMABLE FUEL- The term `consumable fuel' means any solid,
liquid, or gaseous matter which releases energy when consumed by an
auxiliary power unit.
`(2) MOTOR VEHICLE- The term `motor vehicle' has the meaning given
such term by section 30(c)(2).
`(3) CITY FUEL ECONOMY- The city fuel economy with respect to any
vehicle shall be measured in a manner which is substantially similar to the
manner city fuel economy is measured in accordance with procedures under
part 600 of subchapter Q of chapter I of title 40, Code of Federal
Regulations, as in effect on the date of the enactment of this
section.
`(4) OTHER TERMS- The terms `automobile', `passenger automobile',
`light truck', and `manufacturer' have the meanings given such terms in
regulations prescribed by the Administrator of the Environmental Protection
Agency for purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
`(5) REDUCTION IN BASIS- For purposes of this subtitle, the basis of
any property for which a credit is allowable under subsection (a) shall be
reduced by the amount of such credit so allowed (determined without regard
to subsection (e)).
`(6) NO DOUBLE BENEFIT- The amount of any deduction or other credit
allowable under this chapter--
`(A) for any incremental cost taken into account in computing the
amount of the credit determined under subsection (d) shall be reduced by
the amount of such credit attributable to such cost, and
`(B) with respect to a vehicle described under subsection (b) or
(c), shall be reduced by the amount of credit allowed under subsection (a)
for such vehicle for the taxable year.
`(7) PROPERTY USED BY TAX-EXEMPT ENTITIES- In the case of a credit
amount which is allowable with respect to a motor vehicle which is acquired
by an entity exempt from tax under this chapter, the person which sells or
leases such vehicle to the entity shall be treated as the taxpayer with
respect to the vehicle for purposes of this section and the credit shall be
allowed to such person, but only if the person clearly discloses to the
entity at the time of any sale or lease the specific amount of any credit
otherwise allowable to the entity under this section.
`(8) RECAPTURE- The Secretary shall, by regulations, provide for
recapturing the benefit of any credit allowable under subsection (a) with
respect to any property which ceases to be property eligible for such credit
(including recapture in the case of a lease period of less than the economic
life of a vehicle).
`(9) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No
credit shall be allowed under subsection (a) with respect to any property
referred to in section 50(b) or with respect to the portion of the cost of
any property taken into account under section 179.
`(10) ELECTION TO NOT TAKE CREDIT- No credit shall be allowed under
subsection (a) for any vehicle if the taxpayer elects to not have this
section apply to such vehicle.
`(11) CARRYBACK AND CARRYFORWARD ALLOWED-
`(A) IN GENERAL- If the credit amount allowable under subsection
(a) for a taxable year exceeds the amount of the limitation under
subsection (e) for such taxable year (in this paragraph referred to as the
`unused credit year'), such excess shall be allowed as a credit carryback
for each of the 3 taxable years beginning after September 30, 2002, which
precede the unused credit year and a credit carryforward for each of the
20 taxable years which succeed the unused credit year.
`(B) RULES- Rules similar to the rules of section 39 shall apply
with respect to the credit carryback and credit carryforward under
subparagraph (A).
`(12) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY
STANDARDS- Unless otherwise provided in this section, a motor vehicle shall
not be considered eligible for a credit under this section unless such
vehicle is in compliance with--
`(A) the applicable provisions of the Clean Air Act for the
applicable make and model year of the vehicle (or applicable air quality
provisions of State law in the case of a State which has adopted such
provision under a waiver under section 209(b) of the Clean Air Act),
and
`(B) the motor vehicle safety provisions of sections 30101 through
30169 of title 49, United States Code.
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
shall promulgate such regulations as necessary to carry out the provisions
of this section.
`(2) COORDINATION IN PRESCRIPTION OF CERTAIN REGULATIONS- The
Secretary of the Treasury, in coordination with the Secretary of
Transportation and the Administrator of the Environmental Protection Agency,
shall prescribe such regulations as necessary to determine whether a motor
vehicle meets the requirements to be eligible for a credit under this
section.
`(h) TERMINATION- This section shall not apply to any property
purchased after--
`(1) in the case of a new qualified fuel cell motor vehicle (as
described in subsection (b)), December 31, 2011, and
`(2) in the case of any other property, December 31,
2006.'.
(b) CONFORMING AMENDMENTS-
(1) Section 1016(a) is amended by striking `and' at the end of
paragraph (27), by striking the period at the end of paragraph (28) and
inserting `, and', and by adding at the end the following new
paragraph:
`(29) to the extent provided in section 30B(f)(5).'.
(2) Section 55(c)(2) is amended by inserting `30B(e),' after
`30(b)(3)'.
(3) Section 6501(m) is amended by inserting `30B(f)(10),' after
`30(d)(4),'.
(4) The table of sections for subpart B of part IV of subchapter A
of chapter 1 is amended by inserting after the item relating to section 30A
the following new item:
`Sec. 30B. Alternative motor vehicle credit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after September 30, 2002, in taxable years ending
after such date.
SEC. 2002. MODIFICATION OF CREDIT FOR QUALIFIED ELECTRIC
VEHICLES.
(1) IN GENERAL- Section 30(a) (relating to allowance of credit) is
amended by striking `10 percent of'.
(2) LIMITATION OF CREDIT ACCORDING TO TYPE OF VEHICLE- Section 30(b)
(relating to limitations) is amended--
(A) by striking paragraphs (1) and (2) and inserting the following
new paragraph:
`(1) LIMITATION ACCORDING TO TYPE OF VEHICLE- The amount of the
credit allowed under subsection (a) for any vehicle shall not exceed the
greatest of the following amounts applicable to such vehicle:
`(A) In the case of a vehicle which conforms to the Motor Vehicle
Safety Standard 500 prescribed by the Secretary of Transportation, as in
effect on the date of the enactment of the Energy Tax Incentives Act of
2002, the lesser of--
`(i) 10 percent of the manufacturer's suggested retail price of
the vehicle, or
`(B) In the case of a vehicle not described in subparagraph (A)
with a gross vehicle weight rating not exceeding 8,500
pounds--
`(ii) $6,000, if such vehicle is--
`(I) capable of a driving range of at least 100 miles on a
single charge of the vehicle's rechargeable batteries as measured
pursuant to the urban dynamometer schedules under appendix I to part
86 of title 40, Code of Federal Regulations, or
`(II) capable of a payload capacity of at least 1,000
pounds.
`(C) In the case of a vehicle with a gross vehicle weight rating
exceeding 8,500 but not exceeding 14,000 pounds, $10,000.
`(D) In the case of a vehicle with a gross vehicle weight rating
exceeding 14,000 but not exceeding 26,000 pounds, $20,000.
`(E) In the case of a vehicle with a gross vehicle weight rating
exceeding 26,000 pounds, $40,000.', and
(B) by redesignating paragraph (3) as paragraph (2).
(3) CONFORMING AMENDMENTS-
(A) Section 53(d)(1)(B)(iii) is amended by striking `section
30(b)(3)(B)' and inserting `section 30(b)(2)(B)'.
(3) Section 55(c)(2), as amended by this Act, is amended by striking
`30(b)(3)' and inserting `30(b)(2)'.
(b) QUALIFIED BATTERY ELECTRIC VEHICLE-
(1) IN GENERAL- Section 30(c)(1)(A) (defining qualified electric
vehicle) is amended to read as follows:
`(i) operated solely by use of a battery or battery pack,
or
`(ii) powered primarily through the use of an electric battery
or battery pack using a flywheel or capacitor which stores energy
produced by an electric motor through regenerative braking to assist in
vehicle operation,'.
(2) LEASED VEHICLES- Section 30(c)(1)(C) is amended by inserting `or
lease' after `use'.
(3) CONFORMING AMENDMENTS-
(A) Subsections (a), (b)(2), and (c) of section 30 are each
amended by inserting `battery' after `qualified' each place it
appears.
(B) The heading of subsection (c) of section 30 is amended by
inserting `BATTERY' after `QUALIFIED'.
(C) The heading of section 30 is amended by inserting `battery'
after `qualified'.
(D) The item relating to section 30 in the table of sections for
subpart B of part IV of subchapter A of chapter 1 is amended by inserting
`battery' after `qualified'.
(E) Section 179A(c)(3) is amended by inserting `battery' before
`electric'.
(F) The heading of paragraph (3) of section 179A(c) is amended by
inserting `BATTERY' before `ELECTRIC'.
(c) ADDITIONAL SPECIAL RULES- Section 30(d) (relating to special
rules) is amended by adding at the end the following new paragraphs:
`(5) NO DOUBLE BENEFIT- The amount of any deduction or other credit
allowable under this chapter for any cost taken into account in computing
the amount of the credit determined under subsection (a) shall be reduced by
the amount of such credit attributable to such cost.
`(6) PROPERTY USED BY TAX-EXEMPT ENTITIES- In the case of a credit
amount which is allowable with respect to a vehicle which is acquired by an
entity exempt from tax under this chapter, the person which sells or leases
such vehicle to the entity shall be treated as the taxpayer with respect to
the vehicle for purposes of this section and the credit shall be allowed to
such person, but only if the person clearly discloses to the entity at the
time of any sale or lease the specific amount of any credit otherwise
allowable to the entity under this section.
`(7) CARRYBACK AND CARRYFORWARD ALLOWED-
`(A) IN GENERAL- If the credit amount allowable under subsection
(a) for a taxable year exceeds the amount of the limitation under
subsection (b)(2) for such taxable year (in this paragraph referred to as
the `unused credit year'), such excess shall be allowed as a credit
carryback for each of the 3 taxable years beginning after September 30,
2002, which precede the unused credit year and a credit carryforward for
each of the 20 taxable years which succeed the unused credit
year.
`(B) RULES- Rules similar to the rules of section 39 shall apply
with respect to the credit carryback and credit carryforward under
subparagraph (A).'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after September 30, 2002, in taxable years ending
after such date.
SEC. 2003. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING
STATIONS.
(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 30C. CLEAN-FUEL VEHICLE REFUELING PROPERTY CREDIT.
`(a) CREDIT ALLOWED- There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to 50 percent
of the amount paid or incurred by the taxpayer during the taxable year for the
installation of qualified clean-fuel vehicle refueling property.
`(b) LIMITATION- The credit allowed under subsection (a)--
`(1) with respect to any retail clean-fuel vehicle refueling
property, shall not exceed $30,000, and
`(2) with respect to any residential clean-fuel vehicle refueling
property, shall not exceed $1,000.
`(c) YEAR CREDIT ALLOWED- The credit allowed under subsection (a)
shall be allowed in the taxable year in which the qualified clean-fuel vehicle
refueling property is placed in service by the taxpayer.
`(d) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROPERTY- The term
`qualified clean-fuel vehicle refueling property' has the same meaning given
such term by section 179A(d).
`(2) RESIDENTIAL CLEAN-FUEL VEHICLE REFUELING PROPERTY- The term
`residential clean-fuel vehicle refueling property' means qualified
clean-fuel vehicle refueling property which is installed on property which
is used as the principal residence (within the meaning of section 121) of
the taxpayer.
`(3) RETAIL CLEAN-FUEL VEHICLE REFUELING PROPERTY- The term `retail
clean-fuel vehicle refueling property' means qualified clean-fuel vehicle
refueling property which is installed on property (other than property
described in paragraph (2)) used in a trade or business of the
taxpayer.
`(e) APPLICATION WITH OTHER CREDITS- The credit allowed under
subsection (a) for any taxable year shall not exceed the excess (if any)
of--
`(1) the regular tax for the taxable year reduced by the sum of the
credits allowable under subpart A and sections 27, 29, 30, and 30B,
over
`(2) the tentative minimum tax for the taxable year.
`(f) BASIS REDUCTION- For purposes of this title, the basis of any
property shall be reduced by the portion of the cost of such property taken
into account under subsection (a).
`(g) NO DOUBLE BENEFIT- No deduction shall be allowed under section
179A with respect to any property with respect to which a credit is allowed
under subsection (a).
`(h) REFUELING PROPERTY INSTALLED FOR TAX-EXEMPT ENTITIES- In the case
of qualified clean-fuel vehicle refueling property installed on property owned
or used by an entity exempt from tax under this chapter, the person which
installs such refueling property for the entity shall be treated as the
taxpayer with respect to the refueling property for purposes of this section
(and such refueling property shall be treated as retail clean-fuel vehicle
refueling property) and the credit shall be allowed to such person, but only
if the person clearly discloses to the entity in any installation contract the
specific amount of the credit allowable under this section.
`(i) CARRYFORWARD ALLOWED-
`(1) IN GENERAL- If the credit amount allowable under subsection (a)
for a taxable year exceeds the amount of the limitation under subsection (e)
for such taxable year (referred to as the `unused credit year' in this
subsection), such excess shall be allowed as a credit carryforward for each
of the 20 taxable years following the unused credit year.
`(2) RULES- Rules similar to the rules of section 39 shall apply
with respect to the credit carryforward under paragraph (1).
`(j) SPECIAL RULES- Rules similar to the rules of paragraphs (4) and
(5) of section 179A(e) shall apply.
`(k) REGULATIONS- The Secretary shall prescribe such regulations as
necessary to carry out the provisions of this section.
`(l) TERMINATION- This section shall not apply to any property placed
in service--
`(1) in the case of property relating to hydrogen, after December
31, 2011, and
`(2) in the case of any other property, after December 31,
2006.'.
(b) INCENTIVE FOR PRODUCTION OF HYDROGEN AT QUALIFIED CLEAN-FUEL
VEHICLE REFUELING PROPERTY- Section 179A(d) (defining qualified clean-fuel
vehicle refueling property) is amended by adding at the end the following new
flush sentence:
`In the case of clean-burning fuel which is hydrogen produced from
another clean-burning fuel, paragraph (3)(A) shall be applied by substituting
`production, storage, or dispensing' for `storage or dispensing' both places
it appears.'.
(c) CONFORMING AMENDMENTS- (1) Section 1016(a), as amended by this
Act, is amended by striking `and' at the end of paragraph (28), by striking
the period at the end of paragraph (29) and inserting `, and', and by adding
at the end the following new paragraph:
`(30) to the extent provided in section 30C(f).'.
(2) Section 55(c)(2), as amended by this Act, is amended by inserting
`30C(e),' after `30B(e)'.
(3) The table of sections for subpart B of part IV of subchapter A of
chapter 1, as amended by this Act, is amended by inserting after the item
relating to section 30B the following new item:
`Sec. 30C. Clean-fuel vehicle refueling property
credit.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after September 30, 2002, in taxable years ending
after such date.
SEC. 2004. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR VEHICLE
FUEL.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by inserting after section
40 the following new section:
`SEC. 40A. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS MOTOR VEHICLE
FUEL.
`(a) GENERAL RULE- For purposes of section 38, the alternative fuel
retail sales credit for any taxable year is the applicable amount for each
gasoline gallon equivalent of alternative fuel sold at retail by the taxpayer
during such year as a fuel to propel any qualified motor vehicle.
`(b) DEFINITIONS- For purposes of this section--
`(1) APPLICABLE AMOUNT- The term `applicable amount' means the
amount determined in accordance with the following table:
`In the case of any taxable year
ending in--
The applicable amount is--
2002 and 2003
30 cents
2004
40 cents
2005 and 2006
50 cents.
`(2) ALTERNATIVE FUEL- The term `alternative fuel' means compressed
natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and
any liquid at least 85 percent of the volume of which consists of methanol
or ethanol.
`(3) GASOLINE GALLON EQUIVALENT- The term `gasoline gallon
equivalent' means, with respect to any alternative fuel, the amount
(determined by the Secretary) of such fuel having a Btu content of
114,000.
`(4) QUALIFIED MOTOR VEHICLE- The term `qualified motor vehicle'
means any motor vehicle (as defined in section 30(c)(2)) which meets any
applicable Federal or State emissions standards with respect to each fuel by
which such vehicle is designed to be propelled.
`(A) IN GENERAL- The term `sold at retail' means the sale, for a
purpose other than resale, after manufacture, production, or
importation.
`(B) USE TREATED AS SALE- If any person uses alternative fuel
(including any use after importation) as a fuel to propel any qualified
alternative fuel motor vehicle (as defined in section 30B(d)(4)) before
such fuel is sold at retail, then such use shall be treated in the same
manner as if such fuel were sold at retail as a fuel to propel such a
vehicle by such person.
`(c) NO DOUBLE BENEFIT- The amount of any deduction or other credit
allowable under this chapter for any fuel taken into account in computing the
amount of the credit determined under subsection (a) shall be reduced by the
amount of such credit attributable to such fuel.
`(d) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS- Under regulations
prescribed by the Secretary, rules similar to the rules of subsection (d) of
section 52 shall apply.
`(e) TERMINATION- This section shall not apply to any fuel sold at
retail after December 31, 2006.'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b) (relating to
current year business credit) is amended by striking `plus' at the end of
paragraph (14), by striking the period at the end of paragraph (15) and
inserting `, plus', and by adding at the end the following new
paragraph:
`(16) the alternative fuel retail sales credit determined under
section 40A(a).'.
(c) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules)
is amended by adding at the end the following new paragraph:
`(11) NO CARRYBACK OF SECTION 40A CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the alternative fuel retail sales credit determined under
section 40A(a) may be carried back to a taxable year ending before January
1, 2002.'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1 is amended by inserting after the item relating
to section 40 the following new item:
`Sec. 40A. Credit for retail sale of alternative fuels as motor
vehicle fuel.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
fuel sold at retail after September 30, 2002, in taxable years ending after
such date.
SEC. 2005. SMALL ETHANOL PRODUCER CREDIT.
(a) ALLOCATION OF ALCOHOL FUELS CREDIT TO PATRONS OF A COOPERATIVE-
Section 40(g) (relating to alcohol used as fuel) is amended by adding at the
end the following new paragraph:
`(6) ALLOCATION OF SMALL ETHANOL PRODUCER CREDIT TO PATRONS OF
COOPERATIVE-
`(A) ELECTION TO ALLOCATE-
`(i) IN GENERAL- In the case of a cooperative organization
described in section 1381(a), any portion of the credit determined under
subsection (a)(3) for the taxable year may, at the election of the
organization, be apportioned pro rata among patrons of the organization
on the basis of the quantity or value of business done with or for such
patrons for the taxable year.
`(ii) FORM AND EFFECT OF ELECTION- An election under clause (i)
for any taxable year shall be made on a timely filed return for such
year. Such election, once made, shall be irrevocable for such taxable
year.
`(B) TREATMENT OF ORGANIZATIONS AND PATRONS- The amount of the
credit apportioned to patrons under subparagraph (A)--
`(i) shall not be included in the amount determined under
subsection (a) with respect to the organization for the taxable
year,
`(ii) shall be included in the amount determined under
subsection (a) for the taxable year of each patron for which the
patronage dividends for the taxable year described in subparagraph (A)
are included in gross income, and
`(iii) shall be included in gross income of such patrons for the
taxable year in the manner and to the extent provided in section
87.
`(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAXABLE YEAR- If
the amount of the credit of a cooperative organization determined under
subsection (a)(3) for a taxable year is less than the amount of such
credit shown on the return of the cooperative organization for such year,
an amount equal to the excess of--
`(i) such reduction, over
`(ii) the amount not apportioned to such patrons under
subparagraph (A) for the taxable year,
shall be treated as an increase in tax imposed by this chapter on
the organization. Such increase shall not be treated as tax imposed by
this chapter for purposes of determining the amount of any credit under
this chapter or for purposes of section 55.'.
(b) IMPROVEMENTS TO SMALL ETHANOL PRODUCER CREDIT-
(1) DEFINITION OF SMALL ETHANOL PRODUCER- Section 40(g) (relating to
definitions and special rules for eligible small ethanol producer credit) is
amended by striking `30,000,000' each place it appears and inserting
`60,000,000'.
(2) SMALL ETHANOL PRODUCER CREDIT NOT A PASSIVE ACTIVITY CREDIT-
Clause (i) of section 469(d)(2)(A) is amended by striking `subpart D' and
inserting `subpart D, other than section 40(a)(3),'.
(3) ALLOWING CREDIT AGAINST ENTIRE REGULAR TAX AND MINIMUM TAX-
(A) IN GENERAL- Subsection (c) of section 38 (relating to
limitation based on amount of tax), as amended by section 301(b) of the
Job Creation and Worker Assistance Act of 2002, is amended by
redesignating paragraph (4) as paragraph (5) and by inserting after
paragraph (3) the following new paragraph:
`(4) SPECIAL RULES FOR SMALL ETHANOL PRODUCER CREDIT-
`(A) IN GENERAL- In the case of the small ethanol producer
credit--
`(i) this section and section 39 shall be applied separately
with respect to the credit, and
`(ii) in applying paragraph (1) to the credit--
`(I) the amounts in subparagraphs (A) and (B) thereof shall be
treated as being zero, and
`(II) the limitation under paragraph (1) (as modified by
subclause (I)) shall be reduced by the credit allowed under subsection
(a) for the taxable year (other than the small ethanol producer
credit).
`(B) SMALL ETHANOL PRODUCER CREDIT- For purposes of this
subsection, the term `small ethanol producer credit' means the credit
allowable under subsection (a) by reason of section
40(a)(3).'.
(B) CONFORMING AMENDMENTS- Subclause (II) of section
38(c)(2)(A)(ii), as amended by section 301(b)(2) of the Job Creation and
Worker Assistance Act of 2002, and subclause (II) of section
38(c)(3)(A)(ii), as added by section 301(b)(1) of such Act, are each
amended by inserting `or the small ethanol producer credit' after
`employee credit'.
(4) SMALL ETHANOL PRODUCER CREDIT NOT ADDED BACK TO INCOME UNDER
SECTION 87- Section 87 (relating to income inclusion of alcohol fuel credit)
is amended to read as follows:
`SEC. 87. ALCOHOL FUEL CREDIT.
`Gross income includes an amount equal to the sum of--
`(1) the amount of the alcohol mixture credit determined with
respect to the taxpayer for the taxable year under section 40(a)(1),
and
`(2) the alcohol credit determined with respect to the taxpayer for
the taxable year under section 40(a)(2).'.
(c) CONFORMING AMENDMENT- Section 1388 (relating to definitions and
special rules for cooperative organizations) is amended by adding at the end
the following new subsection:
`(k) CROSS REFERENCE- For provisions relating to the apportionment of
the alcohol fuels credit between cooperative organizations and their patrons,
see section 40(g)(6).'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 2006. ALL ALCOHOL FUELS TAXES TRANSFERRED TO HIGHWAY TRUST
FUND.
(a) IN GENERAL- Section 9503(b)(4) (relating to certain taxes not
transferred to Highway Trust Fund) is amended--
(1) by adding `or' at the end of subparagraph (C),
(2) by striking the comma at the end of subparagraph (D)(iii) and
inserting a period, and
(3) by striking subparagraphs (E) and (F).
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
taxes imposed after September 30, 2003.
SEC. 2007. INCREASED FLEXIBILITY IN ALCOHOL FUELS TAX CREDIT.
(a) ALCOHOL FUELS CREDIT MAY BE TRANSFERRED- Section 40 (relating to
alcohol used as fuel) is amended by adding at the end the following new
subsection:
`(i) CREDIT MAY BE TRANSFERRED-
`(1) IN GENERAL- A taxpayer may transfer any credit allowable under
paragraph (1) or (2) of subsection (a) with respect to alcohol used in the
production of ethyl tertiary butyl ether through an assignment to a
qualified assignee. Such transfer may be revoked only with the consent of
the Secretary.
`(2) QUALIFIED ASSIGNEE- For purposes of this subsection, the term
`qualified assignee' means any person who--
`(A) is liable for taxes imposed under section 4081,
`(B) is required to register under section 4101, and
`(C) obtains a certificate from the taxpayer described in
paragraph (1) which identifies the amount of alcohol used in such
production.
`(3) REGULATIONS- The Secretary shall prescribe such regulations as
necessary to insure that any credit described in paragraph (1) is claimed
once and not reassigned by a qualified assignee.'.
(b) ALCOHOL FUELS CREDIT MAY BE TAKEN AGAINST MOTOR FUELS TAX
LIABILITY-
(1) IN GENERAL- Subpart C of part III of subchapter A of chapter 32
(relating to special provisions applicable to petroleum products) is amended
by adding at the end the following new section:
`SEC. 4104. CREDIT AGAINST MOTOR FUELS TAXES.
`(a) ELECTION TO USE CREDIT AGAINST MOTOR FUELS TAXES- There is hereby
allowed as a credit against the taxes imposed by section 4081, any credit
allowed under paragraph (1) or (2) of section 40(a) with respect to alcohol
used in the production of ethyl tertiary butyl ether to the extent--
`(1) such credit is not claimed by the taxpayer or the qualified
assignee under section 40(i) as a credit under section 40, and
`(2) the taxpayer or qualified assignee elects to claim such credit
under this section.
`(b) ELECTION IRREVOCABLE- Any election under subsection (a) shall be
irrevocable.
`(c) REQUIRED STATEMENT- Any return claiming a credit pursuant to an
election under this section shall be accompanied by a statement that the
credit was not, and will not, be claimed on an income tax return.
`(d) REGULATIONS- The Secretary shall prescribe such regulations as
necessary to avoid the claiming of double benefits and to prescribe the
taxable periods with respect to which the credit may be claimed.'.
(2) CONFORMING AMENDMENT- Section 40(c) is amended by striking `or
section 4091(c)' and inserting `section 4091(c), or section
4104'.
(3) CLERICAL AMENDMENT- The table of sections for subpart C of part
III of subchapter A of chapter 32 is amended by adding at the end the
following new item:
`Sec. 4104. Credit against motor fuels taxes.'.
(c) EFFECTIVE DATE- The amendments made by this section shall take
effect on and after the date of the enactment of this Act.
SEC. 2008. INCENTIVES FOR BIODIESEL.
(a) CREDIT FOR BIODIESEL USED AS A FUEL-
(1) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is amended
by inserting after section 40A the following new section:
`SEC. 40B. BIODIESEL USED AS FUEL.
`(a) GENERAL RULE- For purposes of section 38, the biodiesel fuels
credit determined under this section for the taxable year is an amount equal
to the biodiesel mixture credit.
`(b) DEFINITION OF BIODIESEL MIXTURE CREDIT- For purposes of this
section--
`(1) BIODIESEL MIXTURE CREDIT-
`(A) IN GENERAL- The biodiesel mixture credit of any taxpayer for
any taxable year is the sum of the products of the biodiesel mixture rate
for each qualified biodiesel mixture and the number of gallons of such
mixture of the taxpayer for the taxable year.
`(B) BIODIESEL MIXTURE RATE- For purposes of subparagraph (A), the
biodiesel mixture rate for each qualified biodiesel mixture shall
be--
`(i) in the case of a mixture with only biodiesel V, 1 cent for
each whole percentage point (not exceeding 20 percentage points) of
biodiesel V in such mixture, and
`(ii) in the case of a mixture with biodiesel NV, or a
combination of biodiesel V and biodiesel NV, 0.5 cent for each whole
percentage point (not exceeding 20 percentage points) of such biodiesel
in such mixture.
`(2) QUALIFIED BIODIESEL MIXTURE-
`(A) IN GENERAL- The term `qualified biodiesel mixture' means a
mixture of diesel and biodiesel V or biodiesel NV which--
`(i) is sold by the taxpayer producing such mixture to any
person for use as a fuel, or
`(ii) is used as a fuel by the taxpayer producing such
mixture.
`(B) SALE OR USE MUST BE IN TRADE OR BUSINESS, ETC-
`(i) IN GENERAL- Biodiesel V or biodiesel NV used in the
production of a qualified biodiesel mixture shall be taken into
account--
`(I) only if the sale or use described in subparagraph (A) is
in a trade or business of the taxpayer, and
`(II) for the taxable year in which such sale or use
occurs.
`(ii) CERTIFICATION FOR BIODIESEL V- Biodiesel V used in the
production of a qualified biodiesel mixture shall be taken into account
only if the taxpayer described in subparagraph (A) obtains a
certification from the producer of the biodiesel V which identifies the
product produced.
`(C) CASUAL OFF-FARM PRODUCTION NOT ELIGIBLE- No credit shall be
allowed under this section with respect to any casual off-farm production
of a qualified biodiesel mixture.
`(c) COORDINATION WITH EXEMPTION FROM EXCISE TAX- The amount of the
credit determined under this section with respect to any biodiesel V shall,
under regulations prescribed by the Secretary, be properly reduced to take
into account any benefit provided with respect to such biodiesel V solely by
reason of the application of section 4041(n) or section 4081(f).
`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this
section--
`(1) BIODIESEL V DEFINED- The term `biodiesel V' means the monoalkyl
esters of long chain fatty acids derived solely from virgin vegetable oils
for use in compressional-ignition (diesel) engines. Such term shall include
esters derived from vegetable oils from corn, soybeans, sunflower seeds,
cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran,
and mustard seeds.
`(2) BIODIESEL NV DEFINED- The term `biodiesel nv' means the
monoalkyl esters of long chain fatty acids derived from nonvirgin vegetable
oils or animal fats for use in compressional-ignition (diesel)
engines.
`(3) REGISTRATION REQUIREMENTS- The terms `biodiesel V' and
`biodiesel NV' shall only include a biodiesel which meets--
`(i) the registration requirements for fuels and fuel additives
established by the Environmental Protection Agency under section 211 of
the Clean Air Act (42 U.S.C. 7545), and
`(ii) the requirements of the American Society of Testing and
Materials D6751.
`(2) BIODIESEL MIXTURE NOT USED AS A FUEL, ETC-
`(A) IMPOSITION OF TAX- If--
`(i) any credit was determined under this section with respect
to biodiesel V or biodiesel NV used in the production of any qualified
biodiesel mixture, and
`(I) separates such biodiesel from the mixture,
or
`(II) without separation, uses the mixture other than as a
fuel,
then there is hereby imposed on such person a tax equal to the
product of the biodiesel mixture rate applicable under subsection
(b)(1)(B) and the number of gallons of the mixture.
`(B) APPLICABLE LAWS- All provisions of law, including penalties,
shall, insofar as applicable and not inconsistent with this section, apply
in respect of any tax imposed under subparagraph (A) as if such tax were
imposed by section 4081 and not by this chapter.
`(3) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS- Under regulations
prescribed by the Secretary, rules similar to the rules of subsection (d) of
section 52 shall apply.
`(e) ELECTION TO HAVE BIODIESEL FUELS CREDIT NOT APPLY-
`(1) IN GENERAL- A taxpayer may elect to have this section not apply
for any taxable year.
`(2) TIME FOR MAKING ELECTION- An election under paragraph (1) for
any taxable year may be made (or revoked) at any time before the expiration
of the 3-year period beginning on the last date prescribed by law for filing
the return for such taxable year (determined without regard to
extensions).
`(3) MANNER OF MAKING ELECTION- An election under paragraph (1) (or
revocation thereof) shall be made in such manner as the Secretary may by
regulations prescribe.'.
`(f) TERMINATION- This section shall not apply to any fuel sold after
December 31, 2005.'.
(2) CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- Section
38(b), as amended by this Act, is amended by striking `plus' at the end of
paragraph (15), by striking the period at the end of paragraph (16) and
inserting `, plus', and by adding at the end the following new
paragraph:
`(17) the biodiesel fuels credit determined under section
40B(a).'.
(3) CONFORMING AMENDMENTS-
(A) Section 39(d), as amended by this Act, is amended by adding at
the end the following new paragraph:
`(12) NO CARRYBACK OF BIODIESEL FUELS CREDIT BEFORE JANUARY 1, 2003-
No portion of the unused business credit for any taxable year which is
attributable to the biodiesel fuels credit determined under section 40B may
be carried back to a taxable year beginning before January 1,
2003.'.
(B) Section 196(c) is amended by striking `and' at the end of
paragraph (9), by striking the period at the end of paragraph (10), and by
adding at the end the following new paragraph:
`(11) the biodiesel fuels credit determined under section
40B(a).'.
(C) Section 6501(m), as amended by this Act, is amended by
inserting `40B(e),' after `40(f),'.
(D) The table of sections for subpart D of part IV of subchapter A
of chapter 1, as amended by this Act, is amended by adding after the item
relating to section 40A the following new item:
`Sec. 40B. Biodiesel used as fuel.'.
(4) EFFECTIVE DATE- The amendments made by this subsection shall
apply to taxable years beginning after December 31, 2002.
(b) REDUCTION OF MOTOR FUEL EXCISE TAXES ON BIODIESEL V MIXTURES-
(1) IN GENERAL- Section 4081 (relating to manufacturers tax on
petroleum products) is amended by adding at the end the following new
subsection:
`(f) BIODIESEL V MIXTURES- Under regulations prescribed by the
Secretary--
`(1) IN GENERAL- In the case of the removal or entry of a qualified
biodiesel mixture with biodiesel V, the rate of tax under subsection (a)
shall be the otherwise applicable rate reduced by the biodiesel mixture rate
(if any) applicable to the mixture.
`(2) TAX PRIOR TO MIXING-
`(A) IN GENERAL- In the case of the removal or entry of diesel
fuel for use in producing at the time of such removal or entry a qualified
biodiesel mixture with biodiesel V, the rate of tax under subsection (a)
shall be the rate determined under subparagraph (B).
`(B) DETERMINATION OF RATE- For purposes of subparagraph (A), the
rate determined under this subparagraph is the rate determined under
paragraph (1), divided by a percentage equal to 100 percent minus the
percentage of biodiesel V which will be in the mixture.
`(3) DEFINITIONS- For purposes of this subsection, any term used in
this subsection which is also used in section 40B shall have the meaning
given such term by section 40B.
`(4) CERTAIN RULES TO APPLY- Rules similar to the rules of
paragraphs (6) and (7) of subsection (c) shall apply for purposes of this
subsection.'.
(2) CONFORMING AMENDMENTS-
(A) Section 4041 is amended by adding at the end the following new
subsection:
`(n) BIODIESEL V MIXTURES- Under regulations prescribed by the
Secretary, in the case of the sale or use of a qualified biodiesel mixture (as
defined in section 40B(b)(2)) with biodiesel V, the rates under paragraphs (1)
and (2) of subsection (a) shall be the otherwise applicable rates, reduced by
any applicable biodiesel mixture rate (as defined in section
40B(b)(1)(B)).'.
(B) Section 6427 is amended by redesignating subsection (p) as
subsection (q) and by inserting after subsection (o) the following new
subsection:
`(p) BIODIESEL V MIXTURES- Except as provided in subsection (k), if
any diesel fuel on which tax was imposed by section 4081 at a rate not
determined under section 4081(f) is used by any person in producing a
qualified biodiesel mixture (as defined in section 40B(b)(2)) with biodiesel V
which is sold or used in such person's trade or business, the Secretary shall
pay (without interest) to such person an amount equal to the per gallon
applicable biodiesel mixture rate (as defined in section 40B(b)(1)(B)) with
respect to such fuel.'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall
apply to any fuel sold after December 31, 2002, and before January 1,
2006.
(c) HIGHWAY TRUST FUND HELD HARMLESS- There are hereby transferred
(from time to time) from the funds of the Commodity Credit Corporation amounts
determined by the Secretary of the Treasury to be equivalent to the reductions
that would occur (but for this subsection) in the receipts of the Highway
Trust Fund by reason of the amendments made by this section.
SEC. 2009. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER TAKEOFF
VEHICLES.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45N. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.
`(a) GENERAL RULE- For purposes of section 38, the amount of the
commercial power takeoff vehicles credit determined under this section for the
taxable year is $250 for each qualified commercial power takeoff vehicle owned
by the taxpayer as of the close of the calendar year in which or with which
the taxable year of the taxpayer ends.
`(b) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED COMMERCIAL POWER TAKEOFF VEHICLE- The term `qualified
commercial power takeoff vehicle' means any highway vehicle described in
paragraph (2) which is propelled by any fuel subject to tax under section
4041 or 4081 if such vehicle is used in a trade or business or for the
production of income (and is licensed and insured for such use).
`(2) HIGHWAY VEHICLE DESCRIBED- A highway vehicle is described in
this paragraph if such vehicle is--
`(A) designed to engage in the daily collection of refuse or
recyclables from homes or businesses and is equipped with a mechanism
under which the vehicle's propulsion engine provides the power to operate
a load compactor, or
`(B) designed to deliver ready mixed concrete on a daily basis and
is equipped with a mechanism under which the vehicle's propulsion engine
provides the power to operate a mixer drum to agitate and mix the product
en route to the delivery site.
`(c) EXCEPTION FOR VEHICLES USED BY GOVERNMENTS, ETC- No credit shall
be allowed under this section for any vehicle owned by any person at the close
of a calendar year if such vehicle is used at any time during such year
by--
`(1) the United States or an agency or instrumentality thereof, a
State, a political subdivision of a State, or an agency or instrumentality
of one or more States or political subdivisions, or
`(2) an organization exempt from tax under section
501(a).
`(d) DENIAL OF DOUBLE BENEFIT- The amount of any deduction under this
subtitle for any tax imposed by subchapter B of chapter 31 or part III of
subchapter A of chapter 32 for any taxable year shall be reduced (but not
below zero) by the amount of the credit determined under this subsection for
such taxable year.
`(e) TERMINATION- This section shall not apply with respect to any
calendar year after 2004.'.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of
section 38 (relating to general business credit), as amended by this Act, is
amended by striking `plus' at the end of paragraph (22), by striking the
period at the end of paragraph (23) and inserting `, plus', and by adding at
the end the following new paragraph:
`(24) the commercial power takeoff vehicles credit under section
45N(a).'.
(c) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45N. Commercial power takeoff vehicles credit.'.
(d) REGULATIONS- Not later than January 1, 2005, the Secretary of the
Treasury, in consultation with the Secretary of Energy, shall by regulation
provide for the method of determining the exemption from any excise tax
imposed under section 4041 or 4081 of the Internal Revenue Code of 1986 on
fuel used through a mechanism to power equipment attached to a highway vehicle
as described in section 45N(b)(2) of such Code, as added by subsection
(a).
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 2010. MODIFICATIONS TO THE INCENTIVES FOR ALTERNATIVE VEHICLES AND
FUELS.
(a) MODIFICATION TO NEW QUALIFIED HYBRID MOTOR VEHICLE CREDIT- The
table in section 30B(c)(2)(A) of the Internal Revenue Code of 1986, as added
by this Act, is amended by striking `5 percent' and inserting `4
percent'.
(b) MODIFICATIONS TO EXTENSION OF DEDUCTION FOR CERTAIN REFUELING
PROPERTY-
(1) IN GENERAL- Subsection (f) of section 179A of the Internal
Revenue Code of 1986 is amended to read as follows:
`(f) TERMINATION- This section shall not apply to any property placed
in service--
`(1) in the case of property relating to hydrogen, after December
31, 2011, and
`(2) in the case of any other property, after December 31,
2007.'.
(2) EXTENSION OF PHASEOUT- Section 179A(b)(1)(B) of such Code, as
amended by section 606(a) of the Job Creation and Worker Assistance Act of
2002, is amended--
(A) by striking `calendar year 2004' in clause (i) and inserting
`calendar years 2004 and 2005 (calendar years 2004 through 2009 in the
case of property relating to hydrogen) ',
(B) by striking `2005' in clause (ii) and inserting `2006
(calendar year 2010 in the case of property relating to hydrogen)',
and
(C) by striking `2006' in clause (iii) and inserting `2007
(calendar year 2011 in the case of property relating to
hydrogen)'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall
apply to property placed in service after December 31, 2003, in taxable
years ending after such date.
(c) MODIFICATION TO CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING
STATIONS- Subsection (l) of section 30C of the Internal Revenue Code of 1986,
as added by this Act, is amended to read as follows:
`(l) TERMINATION- This section shall not apply to any property placed
in service--
`(1) in the case of property relating to hydrogen, after December
31, 2011, and
`(2) in the case of any other property, after December 31,
2007.'.
(d) EFFECTIVE DATE- Except as provided in subsection (b)(3), the
amendments made by this section shall apply to property placed in service
after September 30, 2002, in taxable years ending after such date.
TITLE XXI--CONSERVATION AND ENERGY EFFICIENCY
PROVISIONS
SEC. 2101. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT
HOME.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45G. NEW ENERGY EFFICIENT HOME CREDIT.
`(a) IN GENERAL- For purposes of section 38, in the case of an
eligible contractor, the credit determined under this section for the taxable
year is an amount equal to the aggregate adjusted bases of all energy
efficient property installed in a qualifying new home during construction of
such home.
`(A) IN GENERAL- The credit allowed by this section with respect
to a qualifying new home shall not exceed--
`(i) in the case of a 30-percent home, $1,250,
and
`(ii) in the case of a 50-percent home, $2,000.
`(B) 30- OR 50-PERCENT HOME- For purposes of subparagraph
(A)--
`(i) 30-PERCENT HOME- The term `30-percent home' means a
qualifying new home which is certified to have a projected level of
annual heating and cooling energy consumption, measured in terms of
average annual energy cost to the homeowner, which is at least 30
percent less than the annual level of heating and cooling energy
consumption of a reference qualifying new home constructed in accordance
with the standards of chapter 4 of the 2000 International Energy
Conservation Code, or a qualifying new home which is a manufactured home
which meets the applicable standards of the Energy Star program managed
jointly by the Environmental Protection Agency and the Department of
Energy.
`(ii) 50-PERCENT HOME- The term `50-percent home' means a
qualifying new home which is certified to have a projected level of
annual heating and cooling energy consumption, measured in terms of
average annual energy cost to the homeowner, which is at least 50
percent less than such annual level of heating and cooling energy
consumption.
`(C) PRIOR CREDIT AMOUNTS ON SAME HOME TAKEN INTO ACCOUNT- If a
credit was allowed under subsection (a) with respect to a qualifying new
home in 1 or more prior taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that home shall not exceed
the amount under clause (i) or (ii) of subparagraph (A) (as the case may
be), reduced by the sum of the credits allowed under subsection (a) with
respect to the home for all prior taxable years.
`(2) COORDINATION WITH REHABILITATION AND ENERGY CREDITS- For
purposes of this section--
`(A) the basis of any property referred to in subsection (a) shall
be reduced by that portion of the basis of any property which is
attributable to the rehabilitation credit (as determined under section
47(a)) or to the energy percentage of energy property (as determined under
section 48(a)), and
`(B) expenditures taken into account under either section 47 or
48(a) shall not be taken into account under this section.
`(c) DEFINITIONS- For purposes of this section--
`(1) ELIGIBLE CONTRACTOR- The term `eligible contractor' means the
person who constructed the qualifying new home, or in the case of a
manufactured home which conforms to Federal Manufactured Home Construction
and Safety Standards (24 C.F.R. 3280), the manufactured home producer of
such home.
`(2) ENERGY EFFICIENT PROPERTY- The term `energy efficient property'
means any energy efficient building envelope component, and any energy
efficient heating or cooling equipment which can, individually or in
combination with other components, meet the requirements of this
section.
`(3) QUALIFYING NEW HOME- The term `qualifying new home' means a
dwelling--
`(A) located in the United States,
`(B) the construction of which is substantially completed after
the date of the enactment of this section, and
`(C) the first use of which after construction is as a principal
residence (within the meaning of section 121).
`(4) CONSTRUCTION- The term `construction' includes reconstruction
and rehabilitation.
`(5) BUILDING ENVELOPE COMPONENT- The term `building envelope
component' means--
`(A) any insulation material or system which is specifically and
primarily designed to reduce the heat loss or gain of a qualifying new
home when installed in or on such home, and
`(B) exterior windows (including skylights) and
doors.
`(6) MANUFACTURED HOME INCLUDED- The term `qualifying new home'
includes a manufactured home conforming to Federal Manufactured Home
Construction and Safety Standards (24 C.F.R. 3280).
`(1) METHOD OF CERTIFICATION-
`(A) IN GENERAL- A certification described in subsection (b)(1)(B)
shall be determined either by a component-based method or a
performance-based method.
`(B) COMPONENT-BASED METHOD- A component-based method is a method
which uses the applicable technical energy efficiency specifications or
ratings (including product labeling requirements) for the energy efficient
building envelope component or energy efficient heating or cooling
equipment. The Secretary shall, in consultation with the Administrator of
the Environmental Protection Agency, develop prescriptive component-based
packages that are equivalent in energy performance to properties that
qualify under subparagraph (C).
`(C) PERFORMANCE-BASED METHOD-
`(i) IN GENERAL- A performance-based method is a method which
calculates projected energy usage and cost reductions in the qualifying
new home in relation to a reference qualifying new
home--
`(I) heated by the same energy source and heating system type,
and
`(II) constructed in accordance with the standards of chapter
4 of the 2000 International Energy Conservation
Code.
`(ii) COMPUTER SOFTWARE- Computer software shall be used in
support of a performance-based method certification under clause (i).
Such software shall meet procedures and methods for calculating energy
and cost savings in regulations promulgated by the Secretary of Energy.
Such regulations on the specifications for software and verification
protocols shall be based on the 2001 California Residential Alternative
Calculation Method Approval Manual.
`(2) PROVIDER- A certification described in subsection (b)(1)(B)
shall be provided by--
`(A) in the case of a component-based method, a local building
regulatory authority, a utility, a manufactured home production inspection
primary inspection agency (IPIA), or a home energy rating organization,
or
`(B) in the case of a performance-based method, an individual
recognized by an organization designated by the Secretary for such
purposes.
`(A) IN GENERAL- A certification described in subsection (b)(1)(B)
shall be made in writing in a manner that specifies in readily verifiable
fashion the energy efficient building envelope components and energy
efficient heating or cooling equipment installed and their respective
rated energy efficiency performance, and in the case of a
performance-based method, accompanied by a written analysis documenting
the proper application of a permissible energy performance calculation
method to the specific circumstances of such qualifying new
home.
`(B) FORM PROVIDED TO BUYER- A form documenting the energy
efficient building envelope components and energy efficient heating or
cooling equipment installed and their rated energy efficiency performance
shall be provided to the buyer of the qualifying new home. The form shall
include labeled R-value for insulation products, NFRC-labeled U-factor and
Solar Heat Gain Coefficient for windows, skylights, and doors, labeled
AFUE ratings for furnaces and boilers, labeled HSPF ratings for electric
heat pumps, and labeled SEER ratings for air conditioners.
`(C) RATINGS LABEL AFFIXED IN DWELLING- A permanent label
documenting the ratings in subparagraph (B) shall be affixed to the front
of the electrical distribution panel of the qualifying new home, or shall
be otherwise permanently displayed in a readily inspectable location in
such home.
`(A) IN GENERAL- In prescribing regulations under this subsection
for performance-based certification methods, the Secretary, after
examining the requirements for energy consultants and home energy ratings
providers specified by the Mortgage Industry National Accreditation
Procedures for Home Energy Rating Systems, shall prescribe procedures for
calculating annual energy usage and cost reductions for heating and
cooling and for the reporting of the results. Such regulations
shall--
`(i) provide that any calculation procedures be fuel neutral
such that the same energy efficiency measures allow a qualifying new
home to be eligible for the credit under this section regardless of
whether such home uses a gas or oil furnace or boiler or an electric
heat pump, and
`(ii) require that any computer software allow for the printing
of the Federal tax forms necessary for the credit under this section and
for the printing of forms for disclosure to the
homebuyer.
`(B) PROVIDERS- For purposes of paragraph (2)(B), the Secretary
shall establish requirements for the designation of individuals based on
the requirements for energy consultants and home energy raters specified
by the Mortgage Industry National Accreditation Procedures for Home Energy
Rating Systems.
`(e) TERMINATION- Subsection (a) shall apply to qualifying new homes
purchased during the period beginning on the date of the enactment of this
section and ending on December 31, 2007.'.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of
section 38 (relating to current year business credit), as amended by this Act,
is amended by striking `plus' at the end of paragraph (16), by striking the
period at the end of paragraph (17) and inserting `, plus', and by adding at
the end the following new paragraph:
`(18) the new energy efficient home credit determined under section
45G(a).'.
(c) DENIAL OF DOUBLE BENEFIT- Section 280C (relating to certain
expenses for which credits are allowable) is amended by adding at the end the
following new subsection:
`(d) NEW ENERGY EFFICIENT HOME EXPENSES- No deduction shall be allowed
for that portion of expenses for a qualifying new home otherwise allowable as
a deduction for the taxable year which is equal to the amount of the credit
determined for such taxable year under section 45G(a).'.
(d) LIMITATION ON CARRYBACK- Subsection (d) of section 39, as amended
by this Act, is amended by adding at the end the following new
paragraph:
`(13) NO CARRYBACK OF NEW ENERGY EFFICIENT HOME CREDIT BEFORE
EFFECTIVE DATE- No portion of the unused business credit for any taxable
year which is attributable to the credit determined under section 45G may be
carried back to any taxable year ending on or before the date of the
enactment of section 45G.'.
(e) DEDUCTION FOR CERTAIN UNUSED BUSINESS CREDITS- Subsection (c) of
section 196, as amended by this Act, is amended by striking `and' at the end
of paragraph (10), by striking the period at the end of paragraph (11) and
inserting `, and', and by adding after paragraph (11) the following new
paragraph:
`(12) the new energy efficient home credit determined under section
45G(a).'.
(f) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45G. New energy efficient home credit.'.
(g) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after the date of the enactment of this Act.
SEC. 2102. CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45H. ENERGY EFFICIENT APPLIANCE CREDIT.
`(a) GENERAL RULE- For purposes of section 38, the energy efficient
appliance credit determined under this section for the taxable year is an
amount equal to the applicable amount determined under subsection (b) with
respect to the eligible production of qualified energy efficient appliances
produced by the taxpayer during the calendar year ending with or within the
taxable year.
`(b) APPLICABLE AMOUNT; ELIGIBLE PRODUCTION- For purposes of
subsection (a)--
`(1) APPLICABLE AMOUNT- The applicable amount is--
`(A) $50, in the case of--
`(i) a clothes washer which is manufactured with at least a 1.26
MEF, or
`(ii) a refrigerator which consumes at least 10 percent less kWh
per year than the energy conservation standards for refrigerators
promulgated by the Department of Energy effective July 1, 2001,
and
`(B) $100, in the case of--
`(i) a clothes washer which is manufactured with at least a 1.42
MEF (at least 1.5 MEF for washers produced after 2004),
or
`(ii) a refrigerator which consumes at least 15 percent less kWh
per year than such energy conservation standards.
`(2) ELIGIBLE PRODUCTION-
`(A) IN GENERAL- The eligible production of each category of
qualified energy efficient appliances is the excess of--
`(i) the number of appliances in such category which are
produced by the taxpayer during such calendar year,
over
`(ii) the average number of appliances in such category which
were produced by the taxpayer during calendar years 1999, 2000, and
2001.
`(B) CATEGORIES- For purposes of subparagraph (A), the categories
are--
`(i) clothes washers described in paragraph
(1)(A)(i),
`(ii) clothes washers described in paragraph
(1)(B)(i),
`(iii) refrigerators described in paragraph (1)(A)(ii),
and
`(iv) refrigerators described in paragraph
(1)(B)(ii).
`(c) LIMITATION ON MAXIMUM CREDIT-
`(1) IN GENERAL- The maximum amount of credit allowed under
subsection (a) with respect to a taxpayer for all taxable years shall
be--
`(A) $30,000,000 with respect to the credit determined under
subsection (b)(1)(A), and
`(B) $30,000,000 with respect to the credit determined under
subsection (b)(1)(B).
`(2) LIMITATION BASED ON GROSS RECEIPTS- The credit allowed under
subsection (a) with respect to a taxpayer for the taxable year shall not
exceed an amount equal to 2 percent of the average annual gross receipts of
the taxpayer for the 3 taxable years preceding the taxable year in which the
credit is determined.
`(3) GROSS RECEIPTS- For purposes of this subsection, the rules of
paragraphs (2) and (3) of section 448(c) shall apply.
`(d) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED ENERGY EFFICIENT APPLIANCE- The term `qualified
energy efficient appliance' means--
`(A) a clothes washer described in subparagraph (A)(i) or (B)(i)
of subsection (b)(1), or
`(B) a refrigerator described in subparagraph (A)(ii) or (B)(ii)
of subsection (b)(1).
`(2) CLOTHES WASHER- The term `clothes washer' means a residential
clothes washer, including a residential style coin operated
washer.
`(3) REFRIGERATOR- The term `refrigerator' means an automatic
defrost refrigerator-freezer which has an internal volume of at least 16.5
cubic feet.
`(4) MEF- The term `MEF' means Modified Energy Factor (as determined
by the Secretary of Energy).
`(1) IN GENERAL- Rules similar to the rules of subsections (c), (d),
and (e) of section 52 shall apply for purposes of this section.
`(2) AGGREGATION RULES- All persons treated as a single employer
under subsection (a) or (b) of section 52 or subsection (m) or (o) of
section 414 shall be treated as 1 person for purposes of subsection
(a).
`(f) VERIFICATION- The taxpayer shall submit such information or
certification as the Secretary, in consultation with the Secretary of Energy,
determines necessary to claim the credit amount under subsection (a).
`(g) TERMINATION- This section shall not apply--
`(1) with respect to refrigerators described in subsection
(b)(1)(A)(ii) produced after December 31, 2004, and
`(2) with respect to all other qualified energy efficient appliances
produced after December 31, 2006.'.
(b) LIMITATION ON CARRYBACK- Section 39(d) (relating to transition
rules), as amended by this Act, is amended by adding at the end the following
new paragraph:
`(14) NO CARRYBACK OF ENERGY EFFICIENT APPLIANCE CREDIT BEFORE
EFFECTIVE DATE- No portion of the unused business credit for any taxable
year which is attributable to the energy efficient appliance credit
determined under section 45H may be carried to a taxable year ending before
January 1, 2003.'.
(c) CONFORMING AMENDMENT- Section 38(b) (relating to general business
credit), as amended by this Act, is amended by striking `plus' at the end of
paragraph (17), by striking the period at the end of paragraph (18) and
inserting `, plus', and by adding at the end the following new
paragraph:
`(19) the energy efficient appliance credit determined under section
45H(a).'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45H. Energy efficient appliance credit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
appliances produced after December 31, 2002, in taxable years ending after
such date.
SEC. 2103. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting after
section 25B the following new section:
`SEC. 25C. RESIDENTIAL ENERGY EFFICIENT PROPERTY.
`(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of--
`(1) 15 percent of the qualified photovoltaic property expenditures
made by the taxpayer during such year,
`(2) 15 percent of the qualified solar water heating property
expenditures made by the taxpayer during such year,
`(3) 30 percent of the qualified fuel cell property expenditures
made by the taxpayer during such year,
`(4) 30 percent of the qualified wind energy property expenditures
made by the taxpayer during such year, and
`(5) the sum of the qualified Tier 2 energy efficient building
property expenditures made by the taxpayer during such year.
`(1) MAXIMUM CREDIT- The credit allowed under subsection (a) shall
not exceed--
`(A) $2,000 for property described in subsection
(d)(1),
`(B) $2,000 for property described in subsection
(d)(2),
`(C) $1,000 for each kilowatt of capacity of property described in
subsection (d)(4),
`(D) $2,000 for property described in subsection (d)(5),
and
`(E) for property described in subsection (d)(6)--
`(i) $75 for each electric heat pump water
heater,
`(ii) $250 for each electric heat pump,
`(iii) $250 for each advanced natural gas
furnace,
`(iv) $250 for each central air conditioner,
`(v) $75 for each natural gas water heater, and
`(vi) $250 for each geothermal heat pump.
`(2) SAFETY CERTIFICATIONS- No credit shall be allowed under this
section for an item of property unless--
`(A) in the case of solar water heating property, such property is
certified for performance and safety by the non-profit Solar Rating
Certification Corporation or a comparable entity endorsed by the
government of the State in which such property is installed,
`(B) in the case of a photovoltaic property, a fuel cell property,
or a wind energy property, such property meets appropriate fire and
electric code requirements, and
`(C) in the case of property described in subsection (d)(6), such
property meets the performance and quality standards, and the
certification requirements (if any), which--
`(i) have been prescribed by the Secretary by regulations (after
consultation with the Secretary of Energy or the Administrator of the
Environmental Protection Agency, as appropriate),
`(ii) in the case of the energy efficiency ratio
(EER)--
`(I) require measurements to be based on published data which
is tested by manufacturers at 95 degrees Fahrenheit,
and
`(II) do not require ratings to be based on certified data of
the Air Conditioning and Refrigeration Institute,
and
`(iii) are in effect at the time of the acquisition of the
property.
`(c) CARRYFORWARD OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under this subpart
(other than this section and section 25D), such excess shall be carried to the
succeeding taxable year and added to the credit allowable under subsection (a)
for such succeeding taxable year.
`(d) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED SOLAR WATER HEATING PROPERTY EXPENDITURE- The term
`qualified solar water heating property expenditure' means an expenditure
for property to heat water for use in a dwelling unit located in the United
States and used as a residence by the taxpayer if at least half of the
energy used by such property for such purpose is derived from the
sun.
`(2) QUALIFIED PHOTOVOLTAIC PROPERTY EXPENDITURE- The term
`qualified photovoltaic property expenditure' means an expenditure for
property that uses solar energy to generate electricity for use in such a
dwelling unit.
`(3) SOLAR PANELS- No expenditure relating to a solar panel or other
property installed as a roof (or portion thereof) shall fail to be treated
as property described in paragraph (1) or (2) solely because it constitutes
a structural component of the structure on which it is installed.
`(4) QUALIFIED FUEL CELL PROPERTY EXPENDITURE- The term `qualified
fuel cell property expenditure' means an expenditure for qualified fuel cell
property (as defined in section 48(a)(4)) installed on or in connection with
such a dwelling unit.
`(5) QUALIFIED WIND ENERGY PROPERTY EXPENDITURE- The term `qualified
wind energy property expenditure' means an expenditure for property which
uses wind energy to generate electricity for use in such a dwelling
unit.
`(6) QUALIFIED TIER 2 ENERGY EFFICIENT BUILDING PROPERTY
EXPENDITURE-
`(A) IN GENERAL- The term `qualified Tier 2 energy efficient
building property expenditure' means an expenditure for any Tier 2 energy
efficient building property.
`(B) TIER 2 ENERGY EFFICIENT BUILDING PROPERTY- The term `Tier 2
energy efficient building property' means--
`(i) an electric heat pump water heater which yields an energy
factor of at least 1.7 in the standard Department of Energy test
procedure,
`(ii) an electric heat pump which has a heating seasonal
performance factor (HSPF) of at least 9, a seasonal energy efficiency
ratio (SEER) of at least 15, and an energy efficiency ratio (EER) of at
least 12.5,
`(iii) an advanced natural gas furnace which achieves at least
95 percent annual fuel utilization efficiency (AFUE),
`(iv) a central air conditioner which has a seasonal energy
efficiency ratio (SEER) of at least 15 and an energy efficiency ratio
(EER) of at least 12.5,
`(v) a natural gas water heater which has an energy factor of at
least 0.80 in the standard Department of Energy test procedure,
and
`(vi) a geothermal heat pump which has an energy efficiency
ratio (EER) of at least 21.
`(7) LABOR COSTS- Expenditures for labor costs properly allocable to
the onsite preparation, assembly, or original installation of the property
described in paragraph (1), (2), (4), (5), or (6) and for piping or wiring
to interconnect such property to the dwelling unit shall be taken into
account for purposes of this section.
`(8) SWIMMING POOLS, ETC., USED AS STORAGE MEDIUM- Expenditures
which are properly allocable to a swimming pool, hot tub, or any other
energy storage medium which has a function other than the function of such
storage shall not be taken into account for purposes of this
section.
`(e) SPECIAL RULES- For purposes of this section--
`(1) DOLLAR AMOUNTS IN CASE OF JOINT OCCUPANCY- In the case of any
dwelling unit which is jointly occupied and used during any calendar year as
a residence by 2 or more individuals the following shall apply:
`(A) The amount of the credit allowable, under subsection (a) by
reason of expenditures (as the case may be) made during such calendar year
by any of such individuals with respect to such dwelling unit shall be
determined by treating all of such individuals as 1 taxpayer whose taxable
year is such calendar year.
`(B) There shall be allowable, with respect to such expenditures
to each of such individuals, a credit under subsection (a) for the taxable
year in which such calendar year ends in an amount which bears the same
ratio to the amount determined under subparagraph (A) as the amount of
such expenditures made by such individual during such calendar year bears
to the aggregate of such expenditures made by all of such individuals
during such calendar year.
`(2) TENANT-STOCKHOLDER IN COOPERATIVE HOUSING CORPORATION- In the
case of an individual who is a tenant-stockholder (as defined in section
216) in a cooperative housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-stockholder's
proportionate share (as defined in section 216(b)(3)) of any expenditures of
such corporation.
`(A) IN GENERAL- In the case of an individual who is a member of a
condominium management association with respect to a condominium which the
individual owns, such individual shall be treated as having made the
individual's proportionate share of any expenditures of such
association.
`(B) CONDOMINIUM MANAGEMENT ASSOCIATION- For purposes of this
paragraph, the term `condominium management association' means an
organization which meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with respect to a condominium
project substantially all of the units of which are used as
residences.
`(4) ALLOCATION IN CERTAIN CASES- Except in the case of qualified
wind energy property expenditures, if less than 80 percent of the use of an
item is for nonbusiness purposes, only that portion of the expenditures for
such item which is properly allocable to use for nonbusiness purposes shall
be taken into account.
`(5) WHEN EXPENDITURE MADE; AMOUNT OF EXPENDITURE-
`(A) IN GENERAL- Except as provided in subparagraph (B), an
expenditure with respect to an item shall be treated as made when the
original installation of the item is completed.
`(B) EXPENDITURES PART OF BUILDING CONSTRUCTION- In the case of an
expenditure in connection with the construction or reconstruction of a
structure, such expenditure shall be treated as made when the original use
of the constructed or reconstructed structure by the taxpayer
begins.
`(C) AMOUNT- The amount of any expenditure shall be the cost
thereof.
`(6) PROPERTY FINANCED BY SUBSIDIZED ENERGY FINANCING- For purposes
of determining the amount of expenditures made by any individual with
respect to any dwelling unit, there shall not be taken in to account
expenditures which are made from subsidized energy financing (as defined in
section 48(a)(5)(C)).
`(f) BASIS ADJUSTMENTS- For purposes of this subtitle, if a credit is
allowed under this section for any expenditure with respect to any property,
the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.
`(g) TERMINATION- The credit allowed under this section shall not
apply to expenditures after December 31, 2007.'.
(b) CREDIT ALLOWED AGAINST REGULAR TAX AND ALTERNATIVE MINIMUM TAX-
(1) IN GENERAL- Section 25C(b), as added by subsection (a), is
amended by adding at the end the following new paragraph:
`(3) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed under
subsection (a) for the taxable year shall not exceed the excess
of--
`(A) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other
than this section and section 25D) and section 27 for the taxable
year.'.
(2) CONFORMING AMENDMENTS-
(A) Section 25C(c), as added by subsection (a), is amended by
striking `section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section and section
25D)' and inserting `subsection (b)(3)'.
(B) Section 23(b)(4)(B) is amended by inserting `and section 25C'
after `this section'.
(C) Section 24(b)(3)(B) is amended by striking `23 and 25B' and
inserting `23, 25B, and 25C'.
(D) Section 25(e)(1)(C) is amended by inserting `25C,' after
`25B,'.
(E) Section 25B(g)(2) is amended by striking `section 23' and
inserting `sections 23 and 25C'.
(F) Section 26(a)(1) is amended by striking `and 25B' and
inserting `25B, and 25C'.
(G) Section 904(h) is amended by striking `and 25B' and inserting
`25B, and 25C'.
(H) Section 1400C(d) is amended by striking `and 25B' and
inserting `25B, and 25C'.
(c) ADDITIONAL CONFORMING AMENDMENTS-
(1) Section 23(c), as in effect for taxable years beginning before
January 1, 2004, is amended by striking `section 1400C' and inserting
`sections 25C and 1400C'.
(2) Section 25(e)(1)(C), as in effect for taxable years beginning
before January 1, 2004, is amended by inserting `, 25Cs,' after `sections
23'.
(3) Subsection (a) of section 1016, as amended by this Act, is
amended by striking `and' at the end of paragraph (29), by striking the
period at the end of paragraph (30) and inserting `, and', and by adding at
the end the following new paragraph:
`(31) to the extent provided in section 25C(f), in the case of
amounts with respect to which a credit has been allowed under section
25C.'.
(4) Section 1400C(d), as in effect for taxable years beginning
before January 1, 2004, is amended by inserting `and section 25C' after
`this section'.
(5) The table of sections for subpart A of part IV of subchapter A
of chapter 1 is amended by inserting after the item relating to section 25B
the following new item:
`Sec. 25C. Residential energy efficient property.'.
(1) IN GENERAL- Except as provided by paragraph (2), the amendments
made by this section shall apply to expenditures after December 31, 2002, in
taxable years ending after such date.
(2) SUBSECTION (b)- The amendments made by subsection (b) shall
apply to taxable years beginning after December 31, 2003.
SEC. 2104. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS AND
STATIONARY MICROTURBINE POWER PLANTS.
(a) IN GENERAL- Subparagraph (A) of section 48(a)(3) (defining energy
property) is amended by striking `or' at the end of clause (i), by adding `or'
at the end of clause (ii), and by inserting after clause (ii) the following
new clause:
`(iii) qualified fuel cell property or qualified microturbine
property,'.
(b) QUALIFIED FUEL CELL PROPERTY; QUALIFIED MICROTURBINE PROPERTY-
Subsection (a) of section 48 is amended by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by inserting after paragraph
(3) the following new paragraph:
`(4) QUALIFIED FUEL CELL PROPERTY; QUALIFIED MICROTURBINE PROPERTY-
For purposes of this subsection--
`(A) QUALIFIED FUEL CELL PROPERTY-
`(i) IN GENERAL- The term `qualified fuel cell property' means a
fuel cell power plant that--
`(I) generates at least 0.5 kilowatt of electricity using an
electrochemical process, and
`(II) has an electricity-only generation efficiency greater
than 30 percent.
`(ii) LIMITATION- In the case of qualified fuel cell property
placed in service during the taxable year, the credit determined under
paragraph (1) for such year with respect to such property shall not
exceed an amount equal to the lesser of--
`(I) 30 percent of the basis of such property,
or
`(II) $500 for each 0.5 kilowatt of capacity of such
property.
`(iii) FUEL CELL POWER PLANT- The term `fuel cell power plant'
means an integrated system comprised of a fuel cell stack assembly and
associated balance of plant components that converts a fuel into
electricity using electrochemical means.
`(iv) TERMINATION- Such term shall not include any property
placed in service after December 31, 2007.
`(B) QUALIFIED MICROTURBINE PROPERTY-
`(i) IN GENERAL- The term `qualified microturbine property'
means a stationary microturbine power plant which has an
electricity-only generation efficiency not less than 26 percent at
International Standard Organization conditions.
`(ii) LIMITATION- In the case of qualified microturbine property
placed in service during the taxable year, the credit determined under
paragraph (1) for such year with respect to such property shall not
exceed an amount equal to the lesser of--
`(I) 10 percent of the basis of such property,
or
`(II) $200 for each kilowatt of capacity of such
property.
`(iii) STATIONARY MICROTURBINE POWER PLANT- The term `stationary
microturbine power plant means a system comprising of a rotary engine
which is actuated by the aerodynamic reaction or impulse or both on
radial or axial curved full-circumferential-admission airfoils on a
central axial rotating spindle. Such system--
`(I) commonly includes an air compressor, combustor, gas
pathways which lead compressed air to the combustor and which lead hot
combusted gases from the combustor to 1 or more rotating turbine
spools, which in turn drive the compressor and power output
shaft,
`(II) includes a fuel compressor, recuperator/regenerator,
generator or alternator, integrated combined cycle equipment,
cooling-heating-and-power equipment, sound attenuation apparatus, and
power conditioning equipment, and
`(III) includes all secondary components located between the
existing infrastructure for fuel delivery and the existing
infrastructure for power distribution, including equipment and
controls for meeting relevant power standards, such as voltage,
frequency, and power factors.
`(iv) TERMINATION- Such term shall not include any property
placed in service after December 31, 2006.'.
(c) LIMITATION- Section 48(a)(2)(A) (relating to energy percentage) is
amended to read as follows:
`(A) IN GENERAL- The energy percentage is--
`(i) in the case of qualified fuel cell property, 30 percent,
and
`(ii) in the case of any other energy property, 10
percent.'.
(d) CONFORMING AMENDMENTS-
(A) Section 29(b)(3)(A)(i)(III) is amended by striking `section
48(a)(4)(C)' and inserting `section 48(a)(5)(C)'.
(B) Section 48(a)(1) is amended by inserting `except as provided
in subparagraph (A)(ii) or (B)(ii) of paragraph (4),' before `the
energy'.
(e) EFFECTIVE DATE- The amendments made by this subsection shall apply
to property placed in service after December 31, 2002, under rules similar to
the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect
on the day before the date of the enactment of the Revenue Reconciliation Act
of 1990).
SEC. 2105. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 is amended by
inserting after section 179A the following new section:
`SEC. 179B. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
`(a) IN GENERAL- There shall be allowed as a deduction for the taxable
year an amount equal to the energy efficient commercial building property
expenditures made by a taxpayer for the taxable year.
`(b) MAXIMUM AMOUNT OF DEDUCTION- The amount of energy efficient
commercial building property expenditures taken into account under subsection
(a) shall not exceed an amount equal to the product of--
`(2) the square footage of the building with respect to which the
expenditures are made.
`(c) YEAR DEDUCTION ALLOWED- The deduction under subsection (a) shall
be allowed in the taxable year in which the construction of the building is
completed.
`(d) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY EXPENDITURES- For
purposes of this section--
`(1) IN GENERAL- The term `energy efficient commercial building
property expenditures' means an amount paid or incurred for energy efficient
commercial building property installed on or in connection with new
construction or reconstruction of property--
`(A) for which depreciation is allowable under section
167,
`(B) which is located in the United States, and
`(C) the construction or erection of which is completed by the
taxpayer.
Such property includes all residential rental property, including
low-rise multifamily structures and single family housing property which is
not within the scope of Standard 90.1-1999 (described in paragraph (2)).
Such term includes expenditures for labor costs properly allocable to the
onsite preparation, assembly, or original installation of the
property.
`(2) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY- For purposes of
paragraph (1)--
`(A) IN GENERAL- The term `energy efficient commercial building
property' means any property which reduces total annual energy and power
costs with respect to the lighting, heating, cooling, ventilation, and hot
water supply systems of the building by 50 percent or more in comparison
to a reference building which meets the requirements of Standard 90.1-1999
of the American Society of Heating, Refrigerating, and Air Conditioning
Engineers and the Illuminating Engineering Society of North America using
methods of calculation under subparagraph (B) and certified by qualified
professionals as provided under paragraph (5).
`(B) METHODS OF CALCULATION- The Secretary, in consultation with
the Secretary of Energy, shall promulgate regulations which describe in
detail methods for calculating and verifying energy and power consumption
and cost, taking into consideration the provisions of the 2001 California
Nonresidential Alternative Calculation Method Approval Manual. These
regulations shall meet the following requirements:
`(i) In calculating tradeoffs and energy performance, the
regulations shall prescribe the costs per unit of energy and power, such
as kilowatt hour, kilowatt, gallon of fuel oil, and cubic foot or Btu of
natural gas, which may be dependent on time of usage.
`(ii) The calculational methodology shall require that
compliance be demonstrated for a whole building. If some systems of the
building, such as lighting, are designed later than other systems of the
building, the method shall provide that either--
`(I) the expenses taken into account under paragraph (1) shall
not occur until the date designs for all energy-using systems of the
building are completed,
`(II) the energy performance of all systems and components not
yet designed shall be assumed to comply minimally with the
requirements of such Standard 90.1-1999, or
`(III) the expenses taken into account under paragraph (1)
shall be a fraction of such expenses based on the performance of less
than all energy-using systems in accordance with clause
(iii).
`(iii) The expenditures in connection with the design of
subsystems in the building, such as the envelope, the heating,
ventilation, air conditioning and water heating system, and the lighting
system shall be allocated to the appropriate building subsystem based on
system-specific energy cost savings targets in regulations promulgated
by the Secretary of Energy which are equivalent, using the calculation
methodology, to the whole building requirement of 50 percent
savings.
`(iv) The calculational methods under this subparagraph need not
comply fully with section 11 of such Standard
90.1-1999.
`(v) The calculational methods shall be fuel neutral, such that
the same energy efficiency features shall qualify a building for the
deduction under this subsection regardless of whether the heating source
is a gas or oil furnace or an electric heat pump.
`(vi) The calculational methods shall provide appropriate
calculated energy savings for design methods and technologies not
otherwise credited in either such Standard 90.1-1999 or in the 2001
California Nonresidential Alternative Calculation Method Approval
Manual, including the following:
`(I) Natural ventilation.
`(II) Evaporative cooling.
`(III) Automatic lighting controls such as occupancy sensors,
photocells, and timeclocks.
`(V) Designs utilizing semi-conditioned spaces that maintain
adequate comfort conditions without air conditioning or without
heating.
`(VI) Improved fan system efficiency, including reductions in
static pressure.
`(VII) Advanced unloading mechanisms for mechanical cooling,
such as multiple or variable speed compressors.
`(VIII) The calculational methods may take into account the
extent of commissioning in the building, and allow the taxpayer to
take into account measured performance that exceeds typical
performance.
`(i) IN GENERAL- Any calculation under this paragraph shall be
prepared by qualified computer software.
`(ii) QUALIFIED COMPUTER SOFTWARE- For purposes of this
subparagraph, the term `qualified computer software' means
software--
`(I) for which the software designer has certified that the
software meets all procedures and detailed methods for calculating
energy and power consumption and costs as required by the
Secretary,
`(II) which provides such forms as required to be filed by the
Secretary in connection with energy efficiency of property and the
deduction allowed under this subsection, and
`(III) which provides a notice form which summarizes the
energy efficiency features of the building and its projected annual
energy costs.
`(3) ALLOCATION OF DEDUCTION FOR PUBLIC PROPERTY- In the case of
energy efficient commercial building property installed on or in public
property, the Secretary shall promulgate a regulation to allow the
allocation of the deduction to the person primarily responsible for
designing the property in lieu of the public entity which is the owner of
such property. Such person shall be treated as the taxpayer for purposes of
this subsection.
`(4) NOTICE TO OWNER- The qualified individual shall provide an
explanation to the owner of the building regarding the energy efficiency
features of the building and its projected annual energy costs as provided
in the notice under paragraph (2)(C)(ii)(III).
`(A) IN GENERAL- Except as provided in this paragraph, the
Secretary shall prescribe procedures for the inspection and testing for
compliance of buildings that are comparable, given the difference between
commercial and residential buildings, to the requirements in the Mortgage
Industry National Accreditation Procedures for Home Energy Rating
Systems.
`(B) QUALIFIED INDIVIDUALS- Individuals qualified to determine
compliance shall be only those individuals who are recognized by an
organization certified by the Secretary for such purposes. The Secretary
may qualify a Home Ratings Systems Organization, a local building code
agency, a State or local energy office, a utility, or any other
organization which meets the requirements prescribed under this
section.
`(C) PROFICIENCY OF QUALIFIED INDIVIDUALS- The Secretary shall
consult with nonprofit organizations and State agencies with expertise in
energy efficiency calculations and inspections to develop proficiency
tests and training programs to qualify individuals to determine
compliance.
`(e) BASIS REDUCTION- For purposes of this subtitle, if a deduction is
allowed under this section with respect to any energy efficient commercial
building property, the basis of such property shall be reduced by the amount
of the deduction so allowed.
`(f) REGULATIONS- The Secretary shall promulgate such regulations as
necessary to take into account new technologies regarding energy efficiency
and renewable energy for purposes of determining energy efficiency and savings
under this section.
`(g) TERMINATION- This section shall not apply with respect to any
energy efficient commercial building property expenditures in connection with
property--
`(1) the plans for which are not certified under subsection (d)(5)
on or before December 31, 2007, and
`(2) the construction of which is not completed on or before
December 31, 2009.'.
(b) CONFORMING AMENDMENTS-
(1) Section 1016(a), as amended by this Act, is amended by striking
`and' at the end of paragraph (30), by striking the period at the end of
paragraph (31) and inserting `, and', and by adding at the end the following
new paragraph:
`(32) to the extent provided in section 179B(e).'.
(2) Section 1245(a) is amended by inserting `179B,' after `179A,'
both places it appears in paragraphs (2)(C) and (3)(C).
(3) Section 1250(b)(3) is amended by inserting before the period at
the end of the first sentence `or by section 179B'.
(4) Section 263(a)(1) is amended by striking `or' at the end of
subparagraph (G), by striking the period at the end of subparagraph (H) and
inserting `, or', and by inserting after subparagraph (H) the following new
subparagraph:
`(I) expenditures for which a deduction is allowed under section
179B.'.
(5) Section 312(k)(3)(B) is amended by striking `or 179A' each place
it appears in the heading and text and inserting `, 179A, or
179B'.
(c) CLERICAL AMENDMENT- The table of sections for part VI of
subchapter B of chapter 1 is amended by inserting after section 179A the
following new item:
`Sec. 179B. Energy efficient commercial buildings deduction.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after September 30, 2002.
SEC. 2106. ALLOWANCE OF DEDUCTION FOR QUALIFIED NEW OR RETROFITTED
ENERGY MANAGEMENT DEVICES.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations), as amended by this Act,
is amended by inserting after section 179B the following new section:
`SEC. 179C. DEDUCTION FOR QUALIFIED NEW OR RETROFITTED ENERGY MANAGEMENT
DEVICES.
`(a) ALLOWANCE OF DEDUCTION- In the case of a taxpayer who is a
supplier of electric energy or natural gas or a provider of electric energy or
natural gas services, there shall be allowed as a deduction an amount equal to
the cost of each qualified energy management device placed in service during
the taxable year.
`(b) MAXIMUM DEDUCTION- The deduction allowed by this section with
respect to each qualified energy management device shall not exceed
$30.
`(c) QUALIFIED ENERGY MANAGEMENT DEVICE- The term `qualified energy
management device' means any tangible property to which section 168 applies if
such property is a meter or metering device--
`(1) which is acquired and used by the taxpayer to enable consumers
to manage their purchase or use of electricity or natural gas in response to
energy price and usage signals, and
`(2) which permits reading of energy price and usage signals on at
least a daily basis.
`(d) PROPERTY USED OUTSIDE THE UNITED STATES NOT QUALIFIED- No
deduction shall be allowed under subsection (a) with respect to property which
is used predominantly outside the United States or with respect to the portion
of the cost of any property taken into account under section 179.
`(1) IN GENERAL- For purposes of this title, the basis of any
property shall be reduced by the amount of the deduction with respect to
such property which is allowed by subsection (a).
`(2) ORDINARY INCOME RECAPTURE- For purposes of section 1245, the
amount of the deduction allowable under subsection (a) with respect to any
property that is of a character subject to the allowance for depreciation
shall be treated as a deduction allowed for depreciation under section
167.'.
(b) CONFORMING AMENDMENTS-
(1) Section 263(a)(1), as amended by this Act, is amended by
striking `or' at the end of subparagraph (H), by striking the period at the
end of subparagraph (I) and inserting `, or', and by inserting after
subparagraph (I) the following new subparagraph:
`(J) expenditures for which a deduction is allowed under section
179C.'.
(2) Section 312(k)(3)(B), as amended by this Act, is amended by
striking `or 179B' each place it appears in the heading and text and
inserting `, 179B, or 179C'.
(3) Section 1016(a), as amended by this Act, is amended by striking
`and' at the end of paragraph (31), by striking the period at the end of
paragraph (32) and inserting `, and', and by adding at the end the following
new paragraph:
`(33) to the extent provided in section 179C(e)(1).'.
(4) Section 1245(a), as amended by this Act, is amended by inserting
`179C,' after `179B,' both places it appears in paragraphs (2)(C) and
(3)(C).
(5) The table of contents for subpart B of part IV of subchapter A
of chapter 1, as amended by this Act, is amended by inserting after the item
relating to section 179B the following new item:
`Sec. 179C. Deduction for qualified new or retrofitted energy management
devices.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
qualified energy management devices placed in service after the date of the
enactment of this Act, in taxable years ending after such date.
SEC. 2107. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT DEVICES.
(a) IN GENERAL- Subparagraph (A) of section 168(e)(3) (relating to
classification of property) is amended by striking `and' at the end of clause
(ii), by striking the period at the end of clause (iii) and inserting `, and',
and by adding at the end the following new clause:
`(iv) any qualified energy management device.'.
(b) DEFINITION OF QUALIFIED ENERGY MANAGEMENT DEVICE- Section 168(i)
(relating to definitions and special rules) is amended by inserting at the end
the following new paragraph:
`(15) QUALIFIED ENERGY MANAGEMENT DEVICE- The term `qualified energy
management device' means any qualified energy management device as defined
in section 179C(c) which is placed in service by a taxpayer who is a
supplier of electric energy or natural gas or a provider of electric energy
or natural gas services.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 2108. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.
(a) IN GENERAL- Subparagraph (A) of section 48(a)(3) (defining energy
property), as amended by this Act, is amended by striking `or' at the end of
clause (ii), by adding `or' at the end of clause (iii), and by inserting after
clause (iii) the following new clause:
`(iv) combined heat and power system
property,'.
(b) COMBINED HEAT AND POWER SYSTEM PROPERTY- Subsection (a) of section
48, as amended by this Act, is amended by redesignating paragraphs (5) and (6)
as paragraphs (6) and (7), respectively, and by inserting after paragraph (4)
the following new paragraph:
`(5) COMBINED HEAT AND POWER SYSTEM PROPERTY- For purposes of this
subsection--
`(A) COMBINED HEAT AND POWER SYSTEM PROPERTY- The term `combined
heat and power system property' means property comprising a
system--
`(i) which uses the same energy source for the simultaneous or
sequential generation of electrical power, mechanical shaft power, or
both, in combination with the generation of steam or other forms of
useful thermal energy (including heating and cooling
applications),
`(ii) which has an electrical capacity of more than 50 kilowatts
or a mechanical energy capacity of more than 67 horsepower or an
equivalent combination of electrical and mechanical energy
capacities,
`(I) at least 20 percent of its total useful energy in the
form of thermal energy, and
`(II) at least 20 percent of its total useful energy in the
form of electrical or mechanical power (or combination
thereof),
`(iv) the energy efficiency percentage of which exceeds 60
percent (70 percent in the case of a system with an electrical capacity
in excess of 50 megawatts or a mechanical energy capacity in excess of
67,000 horsepower, or an equivalent combination of electrical and
mechanical energy capacities), and
`(v) which is placed in service after December 31, 2002, and
before January 1, 2007.
`(i) ENERGY EFFICIENCY PERCENTAGE- For purposes of subparagraph
(A)(iv), the energy efficiency percentage of a system is the
fraction--
`(I) the numerator of which is the total useful electrical,
thermal, and mechanical power produced by the system at normal
operating rates, and expected to be consumed in its normal
application, and
`(II) the denominator of which is the lower heating value of
the primary fuel source for the system.
`(ii) DETERMINATIONS MADE ON BTU BASIS- The energy efficiency
percentage and the percentages under subparagraph (A)(iii) shall be
determined on a Btu basis.
`(iii) INPUT AND OUTPUT PROPERTY NOT INCLUDED- The term
`combined heat and power system property' does not include property used
to transport the energy source to the facility or to distribute energy
produced by the facility.
`(iv) PUBLIC UTILITY PROPERTY-
`(I) ACCOUNTING RULE FOR PUBLIC UTILITY PROPERTY- If the
combined heat and power system property is public utility property (as
defined in section 168(i)(10)), the taxpayer may only claim the credit
under the subsection if, with respect to such property, the taxpayer
uses a normalization method of accounting.
`(II) CERTAIN EXCEPTION NOT TO APPLY- The matter following
paragraph (3)(D) shall not apply to combined heat and power system
property.
`(v) NONAPPLICATION OF CERTAIN RULES- For purposes of
determining if the term `combined heat and power system property'
includes technologies which generate electricity or mechanical power
using back-pressure steam turbines in place of existing
pressure-reducing valves or which make use of waste heat from industrial
processes such as by using organic rankin, stirling, or kalina heat
engine systems, subparagraph (A) shall be applied without regard to
clauses (iii) and (iv) thereof.
`(C) EXTENSION OF DEPRECIATION RECOVERY PERIOD- If a taxpayer is
allowed credit under this section for combined heat and power system
property and such property would (but for this subparagraph) have a class
life of 15 years or less under section 168, such property shall be treated
as having a 22-year class life for purposes of section
168.'.
(c) NO CARRYBACK OF ENERGY CREDIT BEFORE EFFECTIVE DATE- Subsection
(d) of section 39, as amended by this Act, is amended by adding at the end the
following new paragraph:
`(15) NO CARRYBACK OF ENERGY CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the energy credit with respect to property described in
section 48(a)(5) may be carried back to a taxable year ending before January
1, 2003.'.
(d) CONFORMING AMENDMENTS-
(A) Section 25C(e)(6), as added by this Act, is amended by
striking `section 48(a)(5)(C)' and inserting `section
48(a)(6)(C)'.
(B) Section 29(b)(3)(A)(i)(III), as amended by this Act, is
amended by striking `section 48(a)(5)(C)' and inserting `section
48(a)(6)(C)'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after December 31, 2002, in taxable years ending
after such date.
SEC. 2109. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING
HOMES.
(a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits), as amended by this Act, is
amended by inserting after section 25C the following new section:
`SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
`(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 10 percent of the amount paid or incurred by the
taxpayer for qualified energy efficiency improvements installed during such
taxable year.
`(1) MAXIMUM CREDIT- The credit allowed by this section with respect
to a dwelling shall not exceed $300.
`(2) PRIOR CREDIT AMOUNTS FOR TAXPAYER ON SAME DWELLING TAKEN INTO
ACCOUNT- If a credit was allowed to the taxpayer under subsection (a) with
respect to a dwelling in 1 or more prior taxable years, the amount of the
credit otherwise allowable for the taxable year with respect to that
dwelling shall not exceed the amount of $300 reduced by the sum of the
credits allowed under subsection (a) to the taxpayer with respect to the
dwelling for all prior taxable years.
`(c) CARRYFORWARD OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under this subpart
(other than this section) for any taxable year, such excess shall be carried
to the succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.
`(d) QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS- For purposes of this
section, the term `qualified energy efficiency improvements' means any energy
efficient building envelope component which is certified to meet or exceed the
prescriptive criteria for such component in the 2000 International Energy
Conservation Code, any energy efficient building envelope component which is
described in subsection (f)(4)(B) and is certified by the Energy Star program
managed jointly by the Environmental Protection Agency and the Department of
Energy, or any combination of energy efficiency measures which are certified
as achieving at least a 30 percent reduction in heating and cooling energy
usage for the dwelling (as measured in terms of energy cost to the taxpayer),
if--
`(1) such component or combination of measures is installed in or on
a dwelling--
`(A) located in the United States, and
`(B) owned and used by the taxpayer as the taxpayer's principal
residence (within the meaning of section 121),
`(2) the original use of such component or combination of measures
commences with the taxpayer, and
`(3) such component or combination of measures reasonably can be
expected to remain in use for at least 5 years.
`(1) METHODS OF CERTIFICATION-
`(A) COMPONENT-BASED METHOD- The certification described in
subsection (d) for any component described in such subsection shall be
determined on the basis of applicable energy efficiency ratings (including
product labeling requirements) for affected building envelope
components.
`(B) PERFORMANCE-BASED METHOD-
`(i) IN GENERAL- The certification described in subsection (d)
for any combination of measures described in such subsection shall
be--
`(I) determined by comparing the projected heating and cooling
energy usage for the dwelling to such usage for such dwelling in its
original condition, and
`(II) accompanied by a written analysis documenting the proper
application of a permissible energy performance calculation method to
the specific circumstances of such dwelling.
`(ii) COMPUTER SOFTWARE- Computer software shall be used in
support of a performance-based method certification under clause (i).
Such software shall meet procedures and methods for calculating energy
and cost savings in regulations promulgated by the Secretary of Energy.
Such regulations on the specifications for software and verification
protocols shall be based on the 2001 California Residential Alternative
Calculation Method Approval Manual.
`(2) PROVIDER- A certification described in subsection (d) shall be
provided by--
`(A) in the case of the method described in paragraph (1)(A), by a
third party, such as a local building regulatory authority, a utility, a
manufactured home production inspection primary inspection agency (IPIA),
or a home energy rating organization, or
`(B) in the case of the method described in paragraph (1)(B), an
individual recognized by an organization designated by the Secretary for
such purposes.
`(3) FORM- A certification described in subsection (d) shall be made
in writing on forms which specify in readily inspectable fashion the energy
efficient components and other measures and their respective efficiency
ratings, and which include a permanent label affixed to the electrical
distribution panel of the dwelling.
`(A) IN GENERAL- In prescribing regulations under this subsection
for certification methods described in paragraph (1)(B), the Secretary,
after examining the requirements for energy consultants and home energy
ratings providers specified by the Mortgage Industry National
Accreditation Procedures for Home Energy Rating Systems, shall prescribe
procedures for calculating annual energy usage and cost reductions for
heating and cooling and for the reporting of the results. Such regulations
shall--
`(i) provide that any calculation procedures be fuel neutral
such that the same energy efficiency measures allow a dwelling to be
eligible for the credit under this section regardless of whether such
dwelling uses a gas or oil furnace or boiler or an electric heat pump,
and
`(ii) require that any computer software allow for the printing
of the Federal tax forms necessary for the credit under this section and
for the printing of forms for disclosure to the owner of the
dwelling.
`(B) PROVIDERS- For purposes of paragraph (2)(B), the Secretary
shall establish requirements for the designation of individuals based on
the requirements for energy consultants and home energy raters specified
by the Mortgage Industry National Accreditation Procedures for Home Energy
Rating Systems.
`(f) DEFINITIONS AND SPECIAL RULES- For purposes of this
section--
`(1) DOLLAR AMOUNTS IN CASE OF JOINT OCCUPANCY- In the case of any
dwelling unit which is jointly occupied and used during any calendar year as
a residence by 2 or more individuals the following shall apply:
`(A) The amount of the credit allowable under subsection (a) by
reason of expenditures for the qualified energy efficiency improvements
made during such calendar year by any of such individuals with respect to
such dwelling unit shall be determined by treating all of such individuals
as 1 taxpayer whose taxable year is such calendar year.
`(B) There shall be allowable, with respect to such expenditures
to each of such individuals, a credit under subsection (a) for the taxable
year in which such calendar year ends in an amount which bears the same
ratio to the amount determined under subparagraph (A) as the amount of
such expenditures made by such individual during such calendar year bears
to the aggregate of such expenditures made by all of such individuals
during such calendar year.
`(2) TENANT-STOCKHOLDER IN COOPERATIVE HOUSING CORPORATION- In the
case of an individual who is a tenant-stockholder (as defined in section
216) in a cooperative housing corporation (as defined in such section), such
individual shall be treated as having paid his tenant-stockholder's
proportionate share (as defined in section 216(b)(3)) of the cost of
qualified energy efficiency improvements made by such
corporation.
`(A) IN GENERAL- In the case of an individual who is a member of a
condominium management association with respect to a condominium which the
individual owns, such individual shall be treated as having paid the
individual's proportionate share of the cost of qualified energy
efficiency improvements made by such association.
`(B) CONDOMINIUM MANAGEMENT ASSOCIATION- For purposes of this
paragraph, the term `condominium management association' means an
organization which meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with respect to a condominium
project substantially all of the units of which are used as
residences.
`(4) BUILDING ENVELOPE COMPONENT- The term `building envelope
component' means--
`(A) insulation material or system which is specifically and
primarily designed to reduce the heat loss or gain or a dwelling when
installed in or on such dwelling,
`(B) exterior windows (including skylights), and
`(5) MANUFACTURED HOMES INCLUDED- For purposes of this section, the
term `dwelling' includes a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (24 C.F.R.
3280).
`(g) BASIS ADJUSTMENT- For purposes of this subtitle, if a credit is
allowed under this section for any expenditure with respect to any property,
the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.
`(h) APPLICATION OF SECTION- Subsection (a) shall apply to qualified
energy efficiency improvements installed during the period beginning on the
date of the enactment of this section and ending on December 31,
2006.'.
(b) CREDIT ALLOWED AGAINST REGULAR TAX AND ALTERNATIVE MINIMUM TAX-
(1) IN GENERAL- Section 25D(b), as added by subsection (a), is
amended by adding at the end the following new paragraph:
`(3) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed under
subsection (a) for the taxable year shall not exceed the excess
of--
`(A) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other
than this section) and section 27 for the taxable year.'.
(2) CONFORMING AMENDMENTS-
(A) Section 25D(c), as added by subsection (a), is amended by
striking `section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section)' and
inserting `subsection (b)(3)'.
(B) Section 23(b)(4)(B), as amended by this Act, is amended by
striking `section 25C' and inserting `sections 25C and 25D'.
(C) Section 24(b)(3)(B), as amended by this Act, is amended by
striking `and 25C' and inserting `25C, and 25D'.
(D) Section 25(e)(1)(C), as amended by this Act, is amended by
inserting `25D,' after `25C,'.
(E) Section 25B(g)(2), as amended by this Act, is amended by
striking `23 and 25C' and inserting `23, 25C, and 25D'.
(F) Section 26(a)(1), as amended by this Act, is amended by
striking `and 25C' and inserting `25C, and 25D'.
(G) Section 904(h), as amended by this Act, is amended by striking
`and 25C' and inserting `25C, and 25D'.
(H) Section 1400C(d), as amended by this Act, is amended by
striking `and 25C' and inserting `25C, and 25D'.
(c) ADDITIONAL CONFORMING AMENDMENTS-
(1) Section 23(c), as in effect for taxable years beginning before
January 1, 2004, and as amended by this Act, is amended by inserting `,
25D,' after `sections 25C'.
(2) Section 25(e)(1)(C), as in effect for taxable years beginning
before January 1, 2004, and as amended by this Act, is amended by inserting
`25D,' after `25C,'.
(3) Subsection (a) of section 1016, as amended by this Act, is
amended by striking `and' at the end of paragraph (32), by striking the
period at the end of paragraph (33) and inserting `; and', and by adding at
the end the following new paragraph:
`(34) to the extent provided in section 25D(f), in the case of
amounts with respect to which a credit has been allowed under section
25D.'.
(4) Section 1400C(d), as in effect for taxable years beginning
before January 1, 2004, and as amended by this Act, is amended by striking
`section 25C' and inserting `sections 25C and 25D'.
(5) The table of sections for subpart A of part IV of subchapter A
of chapter 1, as amended by this Act, is amended by inserting after the item
relating to section 25C the following new item:
`Sec. 25D. Energy efficiency improvements to existing homes.'.
(1) IN GENERAL- Except as provided by paragraph (2), the amendments
made by this section shall apply to expenditures after December 31, 2002, in
taxable years ending after such date.
(2) SUBSECTION (b)- The amendments made by subsection (b) shall
apply to taxable years beginning after December 31, 2003.
SEC. 2110. ALLOWANCE OF DEDUCTION FOR QUALIFIED NEW OR RETROFITTED WATER
SUBMETERING DEVICES.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations), as amended by this Act,
is amended by inserting after section 179D the following new section:
`SEC. 179E. DEDUCTION FOR QUALIFIED NEW OR RETROFITTED WATER SUBMETERING
DEVICES.
`(a) ALLOWANCE OF DEDUCTION- In the case of a taxpayer who is an
eligible resupplier, there shall be allowed as a deduction an amount equal to
the cost of each qualified water submetering device placed in service during
the taxable year.
`(b) MAXIMUM DEDUCTION- The deduction allowed by this section with
respect to each qualified water submetering device shall not exceed
$30.
`(c) ELIGIBLE RESUPPLIER- For purposes of this section, the term
`eligible resupplier' means any taxpayer who purchases and installs qualified
water submetering devices in every unit in any multi-unit property.
`(d) QUALIFIED WATER SUBMETERING DEVICE- The term `qualified water
submetering device' means any tangible property to which section 168 applies
if such property is a submetering device (including ancillary
equipment)--
`(1) which is purchased and installed by the taxpayer to enable
consumers to manage their purchase or use of water in response to water
price and usage signals, and
`(2) which permits reading of water price and usage signals on at
least a daily basis.
`(e) PROPERTY USED OUTSIDE THE UNITED STATES NOT QUALIFIED- No
deduction shall be allowed under subsection (a) with respect to property which
is used predominantly outside the United States or with respect to the portion
of the cost of any property taken into account under section 179.
`(1) IN GENERAL- For purposes of this title, the basis of any
property shall be reduced by the amount of the deduction with respect to
such property which is allowed by subsection (a).
`(2) ORDINARY INCOME RECAPTURE- For purposes of section 1245, the
amount of the deduction allowable under subsection (a) with respect to any
property that is of a character subject to the allowance for depreciation
shall be treated as a deduction allowed for depreciation under section
167.
`(g) TERMINATION- This section shall not apply to any property placed
in service after December 31, 2007.'.
(b) CONFORMING AMENDMENTS-
(1) Section 263(a)(1), as amended by this Act, is amended by
striking `or' at the end of subparagraph (J), by striking the period at the
end of subparagraph (K) and inserting `, or', and by inserting after
subparagraph (K) the following new subparagraph:
`(L) expenditures for which a deduction is allowed under section
179E.'.
(2) Section 312(k)(3)(B), as amended by this Act, is amended by
striking `or 179D' each place it appears in the heading and text and
inserting `, 179D, or 179E'.
(3) Section 1016(a), as amended by this Act, is amended by striking
`and' at the end of paragraph (34), by striking the period at the end of
paragraph (35) and inserting `, and', and by adding at the end the following
new paragraph:
`(36) to the extent provided in section 179E(f)(1).'.
(4) Section 1245(a), as amended by this Act, is amended by inserting
`179E,' after `179D,' both places it appears in paragraphs (2)(C) and
(3)(C).
(5) The table of contents for subpart B of part IV of subchapter A
of chapter 1, as amended by this Act, is amended by inserting after the item
relating to section 179D the following new item:
`Sec. 179E. Deduction for qualified new or retrofitted water submetering
devices.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
qualified water submetering devices placed in service after the date of the
enactment of this Act, in taxable years ending after such date.
SEC. 2111. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED WATER SUBMETERING DEVICES.
(a) IN GENERAL- Subparagraph (A) of section 168(e)(3) (relating to
classification of property) is amended by striking `and' at the end of clause
(iii), by striking the period at the end of clause (iv) and inserting `, and',
and by adding at the end the following new clause:
`(v) any qualified water submetering device.'.
(b) DEFINITION OF QUALIFIED WATER SUBMETERING DEVICE- Section 168(i)
(relating to definitions and special rules), as amended by this Act, is
amended by inserting at the end the following new paragraph:
`(16) QUALIFIED WATER SUBMETERING DEVICE- The term `qualified water
submetering device' means any qualified water submetering device (as defined
in section 179E(d)) which is placed in service before January 1, 2008, by a
taxpayer who is an eligible resupplier (as defined in section
179E(c)).'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
TITLE XXII--CLEAN COAL INCENTIVES
Subtitle A--Credit for Emission Reductions and Efficiency
Improvements in Existing Coal-Based Electricity Generation
Facilities
SEC. 2201. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY
UNIT.
(a) CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY
UNIT- Subpart D of part IV of subchapter A of chapter 1 (relating to business
related credits), as amended by this Act, is amended by adding at the end the
following new section:
`SEC. 45I. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY
UNIT.
`(a) GENERAL RULE- For purposes of section 38, the qualifying clean
coal technology production credit of any taxpayer for any taxable year is
equal to the product of--
`(1) the applicable amount of clean coal technology production
credit, multiplied by
`(2) the applicable percentage of the kilowatt hours of electricity
produced by the taxpayer during such taxable year at a qualifying clean coal
technology unit, but only if such production occurs during the 10-year
period beginning on the date the unit was returned to service after becoming
a qualifying clean coal technology unit.
`(1) IN GENERAL- For purposes of this section, the applicable amount
of clean coal technology production credit is equal to $0.0034.
`(2) INFLATION ADJUSTMENT- For calendar years after 2003, the
applicable amount of clean coal technology production credit shall be
adjusted by multiplying such amount by the inflation adjustment factor for
the calendar year in which the amount is applied. If any amount as increased
under the preceding sentence is not a multiple of 0.01 cent, such amount
shall be rounded to the nearest multiple of 0.01 cent.
`(c) APPLICABLE PERCENTAGE- For purposes of this section, with respect
to any qualifying clean coal technology unit, the applicable percentage is the
percentage equal to the ratio which the portion of the national megawatt
capacity limitation allocated to the taxpayer with respect to such unit under
subsection (e) bears to the total megawatt capacity of such unit.
`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this
section--
`(1) QUALIFYING CLEAN COAL TECHNOLOGY UNIT- The term `qualifying
clean coal technology unit' means a clean coal technology unit of the
taxpayer which--
`(A) on the date of the enactment of this section was a coal-based
electricity generating steam generator-turbine unit which was not a clean
coal technology unit,
`(B) has a nameplate capacity rating of not more than 300,000
kilowatts,
`(C) becomes a clean coal technology unit as the result of the
retrofitting, repowering, or replacement of the unit with clean coal
technology during the 10-year period beginning on the date of the
enactment of this section,
`(D) is not receiving nor is scheduled to receive funding under
the Clean Coal Technology Program, the Power Plant Improvement Initiative,
or the Clean Coal Power Initiative administered by the Secretary of
Energy, and
`(E) receives an allocation of a portion of the national megawatt
capacity limitation under subsection (e).
`(2) CLEAN COAL TECHNOLOGY UNIT- The term `clean coal technology
unit' means a unit which--
`(A) uses clean coal technology, including advanced pulverized
coal or atmospheric fluidized bed combustion, pressurized fluidized bed
combustion, integrated gasification combined cycle, or any other
technology for the production of electricity,
`(B) uses coal to produce 75 percent or more of its thermal output
as electricity,
`(C) has a design net heat rate of at least 500 less than that of
such unit as described in paragraph (1)(A),
`(D) has a maximum design net heat rate of not more than 9,500,
and
`(E) meets the pollution control requirements of paragraph
(3).
`(3) POLLUTION CONTROL REQUIREMENTS-
`(A) IN GENERAL- A unit meets the requirements of this paragraph
if--
`(i) its emissions of sulfur dioxide, nitrogen oxide, or
particulates meet the lower of the emission levels for each such
emission specified in--
`(I) subparagraph (B), or
`(II) the new source performance standards of the Clean Air
Act (42 U.S.C. 7411) which are in effect for the category of source at
the time of the retrofitting, repowering, or replacement of the unit,
and
`(ii) its emissions do not exceed any relevant emission level
specified by regulation pursuant to the hazardous air pollutant
requirements of the Clean Air Act (42 U.S.C. 7412) in effect at the time
of the retrofitting, repowering, or replacement.
`(B) SPECIFIC LEVELS- The levels specified in this subparagraph
are--
`(i) in the case of sulfur dioxide emissions, 50 percent of the
sulfur dioxide emission levels specified in the new source performance
standards of the Clean Air Act (42 U.S.C. 7411) in effect on the date of
the enactment of this section for the category of
source,
`(ii) in the case of nitrogen oxide emissions--
`(I) 0.1 pound per million Btu of heat input if the unit is
not a cyclone-fired boiler, and
`(II) if the unit is a cyclone-fired boiler, 15 percent of the
uncontrolled nitrogen oxide emissions from such boilers,
and
`(iii) in the case of particulate emissions, 0.02 pound per
million Btu of heat input.
`(4) DESIGN NET HEAT RATE- The design net heat rate with respect to
any unit, measured in Btu per kilowatt hour (HHV)--
`(A) shall be based on the design annual heat input to and the
design annual net electrical output from such unit (determined without
regard to such unit's co-generation of steam),
`(B) shall be adjusted for the heat content of the design coal to
be used by the unit if it is less than 12,000 Btu per pound according to
the following formula:
Design net heat rate = Unit net heat rate X [l- {((12,000-design
coal heat content, Btu per pound)/1,000) X 0.013}], and
`(C) shall be corrected for the site reference conditions
of--
`(i) elevation above sea level of 500 feet,
`(ii) air pressure of 14.4 pounds per square inch absolute
(psia),
`(iii) temperature, dry bulb of 63«F,
`(iv) temperature, wet bulb of 54«F, and
`(v) relative humidity of 55 percent.
`(5) HHV- The term `HHV' means higher heating value.
`(6) APPLICATION OF CERTAIN RULES- The rules of paragraphs (3), (4),
and (5) of section 45(d) shall apply.
`(7) INFLATION ADJUSTMENT FACTOR-
`(A) IN GENERAL- The term `inflation adjustment factor' means,
with respect to a calendar year, a fraction the numerator of which is the
GDP implicit price deflator for the preceding calendar year and the
denominator of which is the GDP implicit price deflator for the calendar
year 2002.
`(B) GDP IMPLICIT PRICE DEFLATOR- The term `GDP implicit price
deflator' means the most recent revision of the implicit price deflator
for the gross domestic product as computed by the Department of Commerce
before March 15 of the calendar year.
`(8) NONCOMPLIANCE WITH POLLUTION LAWS- For purposes of this
section, a unit which is not in compliance with the applicable State and
Federal pollution prevention, control, and permit requirements for any
period of time shall not be considered to be a qualifying clean coal
technology unit during such period.
`(e) NATIONAL LIMITATION ON THE AGGREGATE CAPACITY OF QUALIFYING CLEAN
COAL TECHNOLOGY UNITS-
`(1) IN GENERAL- For purposes of subsection (d)(1)(E), the national
megawatt capacity limitation for qualifying clean coal technology units is
4,000 megawatts.
`(2) ALLOCATION OF LIMITATION- The Secretary shall allocate the
national megawatt capacity limitation for qualifying clean coal technology
units in such manner as the Secretary may prescribe under the regulations
under paragraph (3).
`(3) REGULATIONS- Not later than 6 months after the date of the
enactment of this section, the Secretary shall prescribe such regulations as
may be necessary or appropriate--
`(A) to carry out the purposes of this subsection,
`(B) to limit the capacity of any qualifying clean coal technology
unit to which this section applies so that the combined megawatt capacity
allocated to all such units under this subsection when all such units are
placed in service during the 10-year period described in subsection
(d)(1)(C), does not exceed 4,000 megawatts,
`(C) to provide a certification process under which the Secretary,
in consultation with the Secretary of Energy, shall approve and allocate
the national megawatt capacity limitation--
`(i) to encourage that units with the highest thermal
efficiencies, when adjusted for the heat content of the design coal and
site reference conditions described in subsection (d)(4)(C), and
environmental performance be placed in service as soon as
possible,
`(ii) to allocate capacity to taxpayers that have a definite and
credible plan for placing into commercial operation a qualifying clean
coal technology unit, including--
`(II) contractual commitments for procurement and construction
or, in the case of regulated utilities, the agreement of the State
utility commission,
`(III) filings for all necessary preconstruction
approvals,
`(IV) a demonstrated record of having successfully completed
comparable projects on a timely basis, and
`(V) such other factors that the Secretary determines are
appropriate,
`(D) to allocate the national megawatt capacity limitation to a
portion of the capacity of a qualifying clean coal technology unit if the
Secretary determines that such an allocation would maximize the amount of
efficient production encouraged with the available tax
credits,
`(E) to set progress requirements and conditional approvals so
that capacity allocations for clean coal technology units that become
unlikely to meet the necessary conditions for qualifying can be
reallocated by the Secretary to other clean coal technology units,
and
`(F) to provide taxpayers with opportunities to correct
administrative errors and omissions with respect to allocations and record
keeping within a reasonable period after discovery, taking into account
the availability of regulations and other administrative guidance from the
Secretary.'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b), as amended by
this Act, is amended by striking `plus' at the end of paragraph (18), by
striking the period at the end of paragraph (19) and inserting `, plus', and
by adding at the end the following new paragraph:
`(20) the qualifying clean coal technology production credit
determined under section 45I(a).'.
(c) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules),
as amended by this Act, is amended by adding at the end the following new
paragraph:
`(16) NO CARRYBACK OF SECTION 45I CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the qualifying clean coal technology production credit
determined under section 45I may be carried back to a taxable year ending on
or before the date of the enactment of section 45I.'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45I. Credit for production from a qualifying clean coal
technology unit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
production after the date of the enactment of this Act, in taxable years
ending after such date.
Subtitle B--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
SEC. 2211. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) ALLOWANCE OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY UNIT
CREDIT- Section 46 (relating to amount of credit) is amended by striking `and'
at the end of paragraph (2), by striking the period at the end of paragraph
(3) and inserting `, and', and by adding at the end the following new
paragraph:
`(4) the qualifying advanced clean coal technology unit
credit.'.
(b) AMOUNT OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY UNIT CREDIT-
Subpart E of part IV of subchapter A of chapter 1 (relating to rules for
computing investment credit) is amended by inserting after section 48 the
following new section:
`SEC. 48A. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY UNIT
CREDIT.
`(a) IN GENERAL- For purposes of section 46, the qualifying advanced
clean coal technology unit credit for any taxable year is an amount equal to
10 percent of the applicable percentage of the qualified investment in a
qualifying advanced clean coal technology unit for such taxable year.
`(b) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY UNIT-
`(1) IN GENERAL- For purposes of subsection (a), the term
`qualifying advanced clean coal technology unit' means an advanced clean
coal technology unit of the taxpayer--
`(A)(i)(I) in the case of a unit first placed in service after the
date of the enactment of this section, the original use of which commences
with the taxpayer, or
`(II) in the case of the retrofitting or repowering of a unit
first placed in service before such date of enactment, the retrofitting or
repowering of which is completed by the taxpayer after such date,
or
`(ii) which is acquired through purchase (as defined by section
179(d)(2)),
`(B) which is depreciable under section 167,
`(C) which has a useful life of not less than 4
years,
`(D) which is located in the United States,
`(E) which is not receiving nor is scheduled to receive funding
under the Clean Coal Technology Program, the Power Plant Improvement
Initiative, or the Clean Coal Power Initiative administered by the
Secretary of Energy,
`(F) which is not a qualifying clean coal technology unit,
and
`(G) which receives an allocation of a portion of the national
megawatt capacity limitation under subsection (f).
`(2) SPECIAL RULE FOR SALE-LEASEBACKS- For purposes of subparagraph
(A) of paragraph (1), in the case of a unit which--
`(A) is originally placed in service by a person,
and
`(B) is sold and leased back by such person, or is leased to such
person, within 3 months after the date such unit was originally placed in
service, for a period of not less than 12 years,
such unit shall be treated as originally placed in service not
earlier than the date on which such unit is used under the leaseback (or
lease) referred to in subparagraph (B). The preceding sentence shall not
apply to any property if the lessee and lessor of such property make an
election under this sentence. Such an election, once made, may be revoked
only with the consent of the Secretary.
`(3) NONCOMPLIANCE WITH POLLUTION LAWS- For purposes of this
subsection, a unit which is not in compliance with the applicable State and
Federal pollution prevention, control, and permit requirements for any
period of time shall not be considered to be a qualifying advanced clean
coal technology unit during such period.
`(c) APPLICABLE PERCENTAGE- For purposes of this section, with respect
to any qualifying advanced clean coal technology unit, the applicable
percentage is the percentage equal to the ratio which the portion of the
national megawatt capacity limitation allocated to the taxpayer with respect
to such unit under subsection (f) bears to the total megawatt capacity of such
unit.
`(d) ADVANCED CLEAN COAL TECHNOLOGY UNIT- For purposes of this
section--
`(1) IN GENERAL- The term `advanced clean coal technology unit'
means a new, retrofit, or repowering unit of the taxpayer which--
`(i) an eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit,
`(ii) an eligible pressurized fluidized bed combustion
technology unit,
`(iii) an eligible integrated gasification combined cycle
technology unit, or
`(iv) an eligible other technology unit, and
`(B) meets the carbon emission rate requirements of paragraph
(6).
`(2) ELIGIBLE ADVANCED PULVERIZED COAL OR ATMOSPHERIC FLUIDIZED BED
COMBUSTION TECHNOLOGY UNIT- The term `eligible advanced pulverized coal or
atmospheric fluidized bed combustion technology unit' means a clean coal
technology unit using advanced pulverized coal or atmospheric fluidized bed
combustion technology which--
`(A) is placed in service after the date of the enactment of this
section and before January 1, 2013, and
`(B) has a design net heat rate of not more than 8,350 (8,750 in
the case of units placed in service before 2009).
`(3) ELIGIBLE PRESSURIZED FLUIDIZED BED COMBUSTION TECHNOLOGY UNIT-
The term `eligible pressurized fluidized bed combustion technology unit'
means a clean coal technology unit using pressurized fluidized bed
combustion technology which--
`(A) is placed in service after the date of the enactment of this
section and before January 1, 2017, and
`(B) has a design net heat rate of not more than 7,720 (8,750 in
the case of units placed in service before 2009, and 8,350 in the case of
units placed in service after 2008 and before 2013).
`(4) ELIGIBLE INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGY
UNIT- The term `eligible integrated gasification combined cycle technology
unit' means a clean coal technology unit using integrated gasification
combined cycle technology, with or without fuel or chemical co-production,
which--
`(A) is placed in service after the date of the enactment of this
section and before January 1, 2017,
`(B) has a design net heat rate of not more than 7,720 (8,750 in
the case of units placed in service before 2009, and 8,350 in the case of
units placed in service after 2008 and before 2013), and
`(C) has a net thermal efficiency (HHV) using coal with fuel or
chemical co-production of not less than 43.9 percent (39 percent in the
case of units placed in service before 2009, and 40.9 percent in the case
of units placed in service after 2008 and before 2013).
`(5) ELIGIBLE OTHER TECHNOLOGY UNIT- The term `eligible other
technology unit' means a clean coal technology unit using any other
technology for the production of electricity which is placed in service
after the date of the enactment of this section and before January 1,
2017.
`(6) CARBON EMISSION RATE REQUIREMENTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), a unit
meets the requirements of this paragraph if--
`(i) in the case of a unit using design coal with a heat content
of not more than 9,000 Btu per pound, the carbon emission rate is less
than 0.60 pound of carbon per kilowatt hour, and
`(ii) in the case of a unit using design coal with a heat
content of more than 9,000 Btu per pound, the carbon emission rate is
less than 0.54 pound of carbon per kilowatt hour.
`(B) ELIGIBLE OTHER TECHNOLOGY UNIT- In the case of an eligible
other technology unit, subparagraph (A) shall be applied by substituting
`0.51' and `0.459' for `0.60' and `0.54', respectively.
`(e) GENERAL DEFINITIONS- Any term used in this section which is also
used in section 45I shall have the meaning given such term in section
45I.
`(f) NATIONAL LIMITATION ON THE AGGREGATE CAPACITY OF ADVANCED CLEAN
COAL TECHNOLOGY UNITS-
`(1) IN GENERAL- For purposes of subsection (b)(1)(G), the national
megawatt capacity limitation is--
`(A) for qualifying advanced clean coal technology units using
advanced pulverized coal or atmospheric fluidized bed combustion
technology, not more than 1,000 megawatts (not more than 500 megawatts in
the case of units placed in service before 2009),
`(B) for such units using pressurized fluidized bed combustion
technology, not more than 500 megawatts (not more than 250 megawatts in
the case of units placed in service before 2009),
`(C) for such units using integrated gasification combined cycle
technology, with or without fuel or chemical co-production, not more than
2,000 megawatts (not more than 1,000 megawatts in the case of units placed
in service before 2009 and not more than 1,500 megawatts in the case of
units placed in service after 2008 and before 2013), and
`(D) for such units using other technology for the production of
electricity, not more than 500 megawatts (not more than 250 megawatts in
the case of units placed in service before 2009).
`(2) ALLOCATION OF LIMITATION- The Secretary shall allocate the
national megawatt capacity limitation for qualifying advanced clean coal
technology units in such manner as the Secretary may prescribe under the
regulations under paragraph (3).
`(3) REGULATIONS- Not later than 6 months after the date of the
enactment of this section, the Secretary shall prescribe such regulations as
may be necessary or appropriate--
`(A) to carry out the purposes of this subsection and section
45J,
`(B) to limit the capacity of any qualifying advanced clean coal
technology unit to which this section applies so that the combined
megawatt capacity of all such units to which this section applies does not
exceed 4,000 megawatts,
`(C) to provide a certification process described in section
45I(e)(3)(C),
`(D) to carry out the purposes described in subparagraphs (D),
(E), and (F) of section 45I(e)(3), and
`(E) to reallocate capacity which is not allocated to any
technology described in subparagraphs (A) through (D) of paragraph (1)
because an insufficient number of qualifying units request an allocation
for such technology, to another technology described in such subparagraphs
in order to maximize the amount of energy efficient production encouraged
with the available tax credits.
`(4) SELECTION CRITERIA- For purposes of paragraph (3)(C), the
selection criteria for allocating the national megawatt capacity limitation
to qualifying advanced clean coal technology units--
`(A) shall be established by the Secretary of Energy as part of a
competitive solicitation,
`(B) shall include primary criteria of minimum design net heat
rate, maximum design thermal efficiency, environmental performance, and
lowest cost to the Government, and
`(C) shall include supplemental criteria as determined appropriate
by the Secretary of Energy.
`(g) QUALIFIED INVESTMENT- For purposes of subsection (a), the term
`qualified investment' means, with respect to any taxable year, the basis of a
qualifying advanced clean coal technology unit placed in service by the
taxpayer during such taxable year (in the case of a unit described in
subsection (b)(1)(A)(i)(II), only that portion of the basis of such unit which
is properly attributable to the retrofitting or repowering of such
unit).
`(h) QUALIFIED PROGRESS EXPENDITURES-
`(1) INCREASE IN QUALIFIED INVESTMENT- In the case of a taxpayer who
has made an election under paragraph (5), the amount of the qualified
investment of such taxpayer for the taxable year (determined under
subsection (g) without regard to this subsection) shall be increased by an
amount equal to the aggregate of each qualified progress expenditure for the
taxable year with respect to progress expenditure property.
`(2) PROGRESS EXPENDITURE PROPERTY DEFINED- For purposes of this
subsection, the term `progress expenditure property' means any property
being constructed by or for the taxpayer and which it is reasonable to
believe will qualify as a qualifying advanced clean coal technology unit
which is being constructed by or for the taxpayer when it is placed in
service.
`(3) QUALIFIED PROGRESS EXPENDITURES DEFINED- For purposes of this
subsection--
`(A) SELF-CONSTRUCTED PROPERTY- In the case of any
self-constructed property, the term `qualified progress expenditures'
means the amount which, for purposes of this subpart, is properly
chargeable (during such taxable year) to capital account with respect to
such property.
`(B) NONSELF-CONSTRUCTED PROPERTY- In the case of
nonself-constructed property, the term `qualified progress expenditures'
means the amount paid during the taxable year to another person for the
construction of such property.
`(4) OTHER DEFINITIONS- For purposes of this subsection--
`(A) SELF-CONSTRUCTED PROPERTY- The term `self-constructed
property' means property for which it is reasonable to believe that more
than half of the construction expenditures will be made directly by the
taxpayer.
`(B) NONSELF-CONSTRUCTED PROPERTY- The term `nonself-constructed
property' means property which is not self-constructed
property.
`(C) CONSTRUCTION, ETC- The term `construction' includes
reconstruction and erection, and the term `constructed' includes
reconstructed and erected.
`(D) ONLY CONSTRUCTION OF QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY UNIT TO BE TAKEN INTO ACCOUNT- Construction shall be taken into
account only if, for purposes of this subpart, expenditures therefor are
properly chargeable to capital account with respect to the
property.
`(5) ELECTION- An election under this subsection may be made at such
time and in such manner as the Secretary may by regulations prescribe. Such
an election shall apply to the taxable year for which made and to all
subsequent taxable years. Such an election, once made, may not be revoked
except with the consent of the Secretary.
`(i) COORDINATION WITH OTHER CREDITS- This section shall not apply to
any property with respect to which the rehabilitation credit under section 47
or the energy credit under section 48 is allowed unless the taxpayer elects to
waive the application of such credit to such property.'.
(c) RECAPTURE- Section 50(a) (relating to other special rules) is
amended by adding at the end the following new paragraph:
`(6) SPECIAL RULES RELATING TO QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY UNIT- For purposes of applying this subsection in the case of any
credit allowable by reason of section 48A, the following shall
apply:
`(A) GENERAL RULE- In lieu of the amount of the increase in tax
under paragraph (1), the increase in tax shall be an amount equal to the
investment tax credit allowed under section 38 for all prior taxable years
with respect to a qualifying advanced clean coal technology unit (as
defined by section 48A(b)(1)) multiplied by a fraction whose numerator is
the number of years remaining to fully depreciate under this title the
qualifying advanced clean coal technology unit disposed of, and whose
denominator is the total number of years over which such unit would
otherwise have been subject to depreciation. For purposes of the preceding
sentence, the year of disposition of the qualifying advanced clean coal
technology unit shall be treated as a year of remaining
depreciation.
`(B) PROPERTY CEASES TO QUALIFY FOR PROGRESS EXPENDITURES- Rules
similar to the rules of paragraph (2) shall apply in the case of qualified
progress expenditures for a qualifying advanced clean coal technology unit
under section 48A, except that the amount of the increase in tax under
subparagraph (A) of this paragraph shall be substituted for the amount
described in such paragraph (2).
`(C) APPLICATION OF PARAGRAPH- This paragraph shall be applied
separately with respect to the credit allowed under section 38 regarding a
qualifying advanced clean coal technology unit.'.
(d) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules),
as amended by this Act, is amended by adding at the end the following new
paragraph:
`(17) NO CARRYBACK OF SECTION 48A CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the qualifying advanced clean coal technology unit credit
determined under section 48A may be carried back to a taxable year ending on
or before the date of the enactment of section 48A.'.
(e) TECHNICAL AMENDMENTS-
(1) Section 49(a)(1)(C) is amended by striking `and' at the end of
clause (ii), by striking the period at the end of clause (iii) and inserting
`, and', and by adding at the end the following new clause:
`(iv) the portion of the basis of any qualifying advanced clean
coal technology unit attributable to any qualified investment (as
defined by section 48A(g)).'.
(2) Section 50(a)(4) is amended by striking `and (2)' and inserting
`(2), and (6)'.
(3) Section 50(c) is amended by adding at the end the following new
paragraph:
`(6) NONAPPLICATION- Paragraphs (1) and (2) shall not apply to any
qualifying advanced clean coal technology unit credit under section
48A.'.
(4) The table of sections for subpart E of part IV of subchapter A
of chapter 1 is amended by inserting after the item relating to section 48
the following new item:
`Sec. 48A. Qualifying advanced clean coal technology unit
credit.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
periods after the date of the enactment of this Act, under rules similar to
the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect
on the day before the date of the enactment of the Revenue Reconciliation Act
of 1990).
SEC. 2212. CREDIT FOR PRODUCTION FROM A QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY UNIT.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45J. CREDIT FOR PRODUCTION FROM A QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY UNIT.
`(a) GENERAL RULE- For purposes of section 38, the qualifying advanced
clean coal technology production credit of any taxpayer for any taxable year
is equal to--
`(1) the applicable amount of advanced clean coal technology
production credit, multiplied by
`(2) the applicable percentage (as determined under section 48A(c))
of the sum of--
`(A) the kilowatt hours of electricity, plus
`(B) each 3,413 Btu of fuels or chemicals,
produced by the taxpayer during such taxable year at a qualifying
advanced clean coal technology unit during the 10-year period beginning on
the date the unit was originally placed in service (or returned to service
after becoming a qualifying advanced clean coal technology unit).
`(b) APPLICABLE AMOUNT- For purposes of this section, the applicable
amount of advanced clean coal technology production credit with respect to
production from a qualifying advanced clean coal technology unit shall be
determined as follows:
`(1) Where the qualifying advanced clean coal technology unit is
producing electricity only:
`(A) In the case of a unit originally placed in service before
2009, if--
-------------------------------------------------------------------------------------------------------------------
`The design net heat rate is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-------------------------------------------------------------------------------------------------------------------
Not more than 8,400 $.0060 $.0038
More than 8,400 but not more than 8,550 $.0025 $.0010
More than 8,550 but less than 8,750 $.0010 $.0010.
-------------------------------------------------------------------------------------------------------------------
`(B) In the case of a unit originally placed in service after 2008
and before 2013, if--
-------------------------------------------------------------------------------------------------------------------
`The design net heat rate is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-------------------------------------------------------------------------------------------------------------------
Not more than 7,770 $.0105 $.0090
More than 7,770 but not more than 8,125 $.0085 $.0068
More than 8,125 but less than 8,350 $.0075 $.0055.
-------------------------------------------------------------------------------------------------------------------
`(C) In the case of a unit originally placed in service after 2012
and before 2017, if--
-------------------------------------------------------------------------------------------------------------------
`The design net heat rate is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-------------------------------------------------------------------------------------------------------------------
Not more than 7,380 $.0140 $.0115
More than 7,380 but not more than 7,720 $.0120 $.0090.
-------------------------------------------------------------------------------------------------------------------
`(2) Where the qualifying advanced clean coal technology unit is
producing fuel or chemicals:
`(A) In the case of a unit originally placed in service before
2009, if--
-----------------------------------------------------------------------------------------------------------------------------
`The unit design net thermal efficiency (HHV) is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-----------------------------------------------------------------------------------------------------------------------------
Not less than 40.6 percent $.0060 $.0038
Less than 40.6 but not less than 40 percent $.0025 $.0010
Less than 40 but not less than 39 percent $.0010 $.0010.
-----------------------------------------------------------------------------------------------------------------------------
`(B) In the case of a unit originally placed in service after 2008
and before 2013, if--
-----------------------------------------------------------------------------------------------------------------------------
`The unit design net thermal efficiency (HHV) is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-----------------------------------------------------------------------------------------------------------------------------
Not less than 43.6 percent $.0105 $.0090
Less than 43.6 but not less than 42 percent $.0085 $.0068
Less than 42 but not less than 40.9 percent $.0075 $.0055.
-----------------------------------------------------------------------------------------------------------------------------
`(C) In the case of a unit originally placed in service after 2012
and before 2017, if--
-----------------------------------------------------------------------------------------------------------------------------
`The unit design net thermal efficiency (HHV) is: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
-----------------------------------------------------------------------------------------------------------------------------
Not less than 44.2 percent $.0140 $.0115
Less than 44.2 but not less than 43.9 percent $.0120 $.0090.
-----------------------------------------------------------------------------------------------------------------------------
`(c) INFLATION ADJUSTMENT- For calendar years after 2003, each amount
in paragraphs (1) and (2) of subsection (b) shall be adjusted by multiplying
such amount by the inflation adjustment factor for the calendar year in which
the amount is applied. If any amount as increased under the preceding sentence
is not a multiple of 0.01 cent, such amount shall be rounded to the nearest
multiple of 0.01 cent.
`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this
section--
`(1) IN GENERAL- Any term used in this section which is also used in
section 45I or 48A shall have the meaning given such term in such
section.
`(2) APPLICABLE RULES- The rules of paragraphs (3), (4), and (5) of
section 45(d) shall apply.'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b), as amended by
this Act, is amended by striking `plus' at the end of paragraph (19), by
striking the period at the end of paragraph (20) and inserting `, plus', and
by adding at the end the following new paragraph:
`(21) the qualifying advanced clean coal technology production
credit determined under section 45J(a).'.
(c) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules),
as amended by this Act, is amended by adding at the end the following new
paragraph:
`(18) NO CARRYBACK OF SECTION 45J CREDIT BEFORE EFFECTIVE DATE- No
portion of the unused business credit for any taxable year which is
attributable to the qualifying advanced clean coal technology production
credit determined under section 45J may be carried back to a taxable year
ending on or before the date of the enactment of section 45J.'.
(d) DENIAL OF DOUBLE BENEFIT- Section 29(d) (relating to other
definitions and special rules) is amended by adding at the end the following
new paragraph:
`(9) DENIAL OF DOUBLE BENEFIT- This section shall not apply with
respect to any qualified fuel the production of which may be taken into
account for purposes of determining the credit under section
45J.'.
(e) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45J. Credit for production from a qualifying advanced clean
coal technology unit.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
production after the date of the enactment of this Act, in taxable years
ending after such date.
Subtitle C--Treatment of Persons Not Able To Use Entire
Credit
SEC. 2221. TREATMENT OF PERSONS NOT ABLE TO USE ENTIRE CREDIT.
(a) IN GENERAL- Section 45I, as added by this Act, is amended by
adding at the end the following new subsection:
`(f) TREATMENT OF PERSON NOT ABLE TO USE ENTIRE CREDIT-
`(1) ALLOWANCE OF CREDITS-
`(A) IN GENERAL- Any credit allowable under this section, section
45J, or section 48A with respect to a facility owned by a person described
in subparagraph (B) may be transferred or used as provided in this
subsection, and the determination as to whether the credit is allowable
shall be made without regard to the tax-exempt status of the
person.
`(B) PERSONS DESCRIBED- A person is described in this subparagraph
if the person is--
`(i) an organization described in section 501(c)(12)(C) and
exempt from tax under section 501(a),
`(ii) an organization described in section
1381(a)(2)(C),
`(iii) a public utility (as defined in section
136(c)(2)(B)),
`(iv) any State or political subdivision thereof, the District
of Columbia, or any agency or instrumentality of any of the
foregoing,
`(v) any Indian tribal government (within the meaning of section
7871) or any agency or instrumentality thereof, or
`(vi) the Tennessee Valley Authority.
`(A) IN GENERAL- A person described in clause (i), (ii), (iii),
(iv), or (v) of paragraph (1)(B) may transfer any credit to which
paragraph (1)(A) applies through an assignment to any other person not
described in paragraph (1)(B). Such transfer may be revoked only with the
consent of the Secretary.
`(B) REGULATIONS- The Secretary shall prescribe such regulations
as necessary to insure that any credit described in subparagraph (A) is
claimed once and not reassigned by such other person.
`(C) TRANSFER PROCEEDS TREATED AS ARISING FROM ESSENTIAL
GOVERNMENT FUNCTION- Any proceeds derived by a person described in clause
(iii), (iv), or (v) of paragraph (1)(B) from the transfer of any credit
under subparagraph (A) shall be treated as arising from the exercise of an
essential government function.
`(3) USE OF CREDIT AS AN OFFSET- Notwithstanding any other provision
of law, in the case of a person described in clause (i), (ii), or (v) of
paragraph (1)(B), any credit to which paragraph (1)(A) applies may be
applied by such person, to the extent provided by the Secretary of
Agriculture, as a prepayment of any loan, debt, or other obligation the
entity has incurred under subchapter I of chapter 31 of title 7 of the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.), as in effect on the date
of the enactment of this section.
`(A) IN GENERAL- Notwithstanding any other provision of law, in
the case of a person described in paragraph (1)(B)(vi), any credit to
which paragraph (1)(A) applies may be applied as a credit against the
payments required to be made in any fiscal year under section 15d(e) of
the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831n-4(e)) as an
annual return on the appropriations investment and an annual repayment
sum.
`(B) TREATMENT OF CREDITS- The aggregate amount of credits
described in paragraph (1)(A) with respect to such person shall be treated
in the same manner and to the same extent as if such credits were a
payment in cash and shall be applied first against the annual return on
the appropriations investment.
`(C) CREDIT CARRYOVER- With respect to any fiscal year, if the
aggregate amount of credits described paragraph (1)(A) with respect to
such person exceeds the aggregate amount of payment obligations described
in subparagraph (A), the excess amount shall remain available for
application as credits against the amounts of such payment obligations in
succeeding fiscal years in the same manner as described in this
paragraph.
`(5) CREDIT NOT INCOME- Any transfer under paragraph (2) or use
under paragraph (3) of any credit to which paragraph (1)(A) applies shall
not be treated as income for purposes of section 501(c)(12).
`(6) TREATMENT OF UNRELATED PERSONS- For purposes of this
subsection, sales among and between persons described in clauses (i), (ii),
(iii), (iv), and (v) of paragraph (1)(A) shall be treated as sales between
unrelated parties.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
production after the date of the enactment of this Act, in taxable years
ending after such date.
TITLE XXIII--OIL AND GAS PROVISIONS
SEC. 2301. OIL AND GAS FROM MARGINAL WELLS.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business credits), as amended by this Act, is amended by adding
at the end the following new section:
`SEC. 45K. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL
WELLS.
`(a) GENERAL RULE- For purposes of section 38, the marginal well
production credit for any taxable year is an amount equal to the product
of--
`(1) the credit amount, and
`(2) the qualified credit oil production and the qualified natural
gas production which is attributable to the taxpayer.
`(b) CREDIT AMOUNT- For purposes of this section--
`(1) IN GENERAL- The credit amount is--
`(A) $3 per barrel of qualified crude oil production,
and
`(B) 50 cents per 1,000 cubic feet of qualified natural gas
production.
`(2) REDUCTION AS OIL AND GAS PRICES INCREASE-
`(A) IN GENERAL- The $3 and 50 cents amounts under paragraph (1)
shall each be reduced (but not below zero) by an amount which bears the
same ratio to such amount (determined without regard to this paragraph)
as--
`(i) the excess (if any) of the applicable reference price over
$15 ($1.67 for qualified natural gas production), bears
to
`(ii) $3 ($0.33 for qualified natural gas
production).
The applicable reference price for a taxable year is the reference
price of the calendar year preceding the calendar year in which the
taxable year begins.
`(B) INFLATION ADJUSTMENT- In the case of any taxable year
beginning in a calendar year after 2002, each of the dollar amounts
contained in subparagraph (A) shall be increased to an amount equal to
such dollar amount multiplied by the inflation adjustment factor for such
calendar year (determined under section 43(b)(3)(B) by substituting `2001'
for `1990').
`(C) REFERENCE PRICE- For purposes of this paragraph, the term
`reference price' means, with respect to any calendar year--
`(i) in the case of qualified crude oil production, the
reference price determined under section 29(d)(2)(C),
and
`(ii) in the case of qualified natural gas production, the
Secretary's estimate of the annual average wellhead price per 1,000
cubic feet for all domestic natural gas.
`(c) QUALIFIED CRUDE OIL AND NATURAL GAS PRODUCTION- For purposes of
this section--
`(1) IN GENERAL- The terms `qualified crude oil production' and
`qualified natural gas production' mean domestic crude oil or natural gas
which is produced from a qualified marginal well.
`(2) Limitation on amount of production which may qualify-
`(A) IN GENERAL- Crude oil or natural gas produced during any
taxable year from any well shall not be treated as qualified crude oil
production or qualified natural gas production to the extent production
from the well during the taxable year exceeds 1,095 barrels or barrel
equivalents.
`(B) Proportionate reductions-
`(i) SHORT TAXABLE YEARS- In the case of a short taxable year,
the limitations under this paragraph shall be proportionately reduced to
reflect the ratio which the number of days in such taxable year bears to
365.
`(ii) WELLS NOT IN PRODUCTION ENTIRE YEAR- In the case of a well
which is not capable of production during each day of a taxable year,
the limitations under this paragraph applicable to the well shall be
proportionately reduced to reflect the ratio which the number of days of
production bears to the total number of days in the taxable
year.
`(A) QUALIFIED MARGINAL WELL- The term `qualified marginal well'
means a domestic well--
`(i) the production from which during the taxable year is
treated as marginal production under section 613A(c)(6),
or
`(ii) which, during the taxable year--
`(I) has average daily production of not more than 25 barrel
equivalents, and
`(II) produces water at a rate not less than 95 percent of
total well effluent.
`(B) CRUDE OIL, ETC- The terms `crude oil', `natural gas',
`domestic', and `barrel' have the meanings given such terms by section
613A(e).
`(C) BARREL EQUIVALENT- The term `barrel equivalent' means, with
respect to natural gas, a conversation ratio of 6,000 cubic feet of
natural gas to 1 barrel of crude oil.
`(1) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER- In the case of a
qualified marginal well in which there is more than one owner of operating
interests in the well and the crude oil or natural gas production exceeds
the limitation under subsection (c)(2), qualifying crude oil production or
qualifying natural gas production attributable to the taxpayer shall be
determined on the basis of the ratio which taxpayer's revenue interest in
the production bears to the aggregate of the revenue interests of all
operating interest owners in the production.
`(2) OPERATING INTEREST REQUIRED- Any credit under this section may
be claimed only on production which is attributable to the holder of an
operating interest.
`(3) PRODUCTION FROM NONCONVENTIONAL SOURCES EXCLUDED- In the case
of production from a qualified marginal well which is eligible for the
credit allowed under section 29 for the taxable year, no credit shall be
allowable under this section unless the taxpayer elects not to claim the
credit under section 29 with respect to the well.
`(4) NONCOMPLIANCE WITH POLLUTION LAWS- For purposes of subsection
(c)(3)(A), a marginal well which is not in compliance with the applicable
State and Federal pollution prevention, control, and permit requirements for
any period of time shall not be considered to be a qualified marginal well
during such period.'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b), as amended by
this Act, is amended by striking `plus' at the end of paragraph (20), by
striking the period at the end of paragraph (21) and inserting `, plus', and
by adding at the end the following new paragraph:
`(22) the marginal oil and gas well production credit determined
under section 45K(a).'.
(c) NO CARRYBACK OF MARGINAL OIL AND GAS WELL PRODUCTION CREDIT BEFORE
EFFECTIVE DATE- Subsection (d) of section 39, as amended by this Act, is
amended by adding at the end the following new paragraph:
`(19) NO CARRYBACK OF MARGINAL OIL AND GAS WELL PRODUCTION CREDIT
BEFORE EFFECTIVE DATE- No portion of the unused business credit for any
taxable year which is attributable to the marginal oil and gas well
production credit determined under section 45K may be carried back to a
taxable year ending on or before the date of the enactment of section
45K.'.
(d) COORDINATION WITH SECTION 29- Section 29(a) is amended by striking
`There' and inserting `At the election of the taxpayer, there'.
(e) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45K. Credit for producing oil and gas from marginal wells.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
production in taxable years beginning after the date of the enactment of this
Act.
SEC. 2302. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR
PROPERTY.
(a) IN GENERAL- Subparagraph (C) of section 168(e)(3) (relating to
classification of certain property) is amended by striking `and' at the end of
clause (i), by redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
`(ii) any natural gas gathering line, and'.
(b) NATURAL GAS GATHERING LINE- Subsection (i) of section 168, as
amended by this Act, is amended by adding at the end the following new
paragraph:
`(16) NATURAL GAS GATHERING LINE- The term `natural gas gathering
line' means--
`(A) the pipe, equipment, and appurtenances determined to be a
gathering line by the Federal Energy Regulatory Commission,
or
`(B) the pipe, equipment, and appurtenances used to deliver
natural gas from the wellhead or a commonpoint to the point at which such
gas first reaches--
`(i) a gas processing plant,
`(ii) an interconnection with a transmission pipeline
certificated by the Federal Energy Regulatory Commission as an
interstate transmission pipeline,
`(iii) an interconnection with an intrastate transmission
pipeline, or
`(iv) a direct interconnection with a local distribution
company, a gas storage facility, or an industrial
consumer.'.
(c) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B) is
amended by inserting after the item relating to subparagraph (C)(i) the
following new item:
`(C)(ii)
--10'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 2303. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING WITH
ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations), as amended by this Act,
is amended by inserting after section 179C the following new section:
`SEC. 179D. DEDUCTION FOR CAPITAL COSTS INCURRED IN COMPLYING WITH
ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
`(a) TREATMENT AS EXPENSE-
`(1) IN GENERAL- A small business refiner may elect to treat any
qualified capital costs as an expense which is not chargeable to capital
account. Any qualified cost which is so treated shall be allowed as a
deduction for the taxable year in which the cost is paid or
incurred.
`(A) IN GENERAL- The aggregate costs which may be taken into
account under this subsection for any taxable year may not exceed the
applicable percentage of the qualified capital costs paid or incurred for
the taxable year.
`(B) APPLICABLE PERCENTAGE- For purposes of subparagraph
(A)--
`(i) IN GENERAL- Except as provided in clause (ii), the
applicable percentage is 75 percent.
`(ii) REDUCED PERCENTAGE- In the case of a small business
refiner with average daily refinery runs for the period described in
subsection (b)(2) in excess of 155,000 barrels, the percentage described
in clause (i) shall be reduced (not below zero) by the product of such
percentage (before the application of this clause) and the ratio of such
excess to 50,000 barrels.
`(b) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED CAPITAL COSTS- The term `qualified capital costs'
means any costs which--
`(A) are otherwise chargeable to capital account,
and
`(B) are paid or incurred for the purpose of complying with the
Highway Diesel Fuel Sulfur Control Requirement of the Environmental
Protection Agency, as in effect on the date of the enactment of this
section, with respect to a facility placed in service by the taxpayer
before such date.
`(2) SMALL BUSINESS REFINER- The term `small business refiner'
means, with respect to any taxable year, a refiner of crude oil, which,
within the refinery operations of the business, employs not more than 1,500
employees on any day during such taxable year and whose average daily
refinery run for the 1-year period ending on the date of the enactment of
this section did not exceed 205,000 barrels.
`(c) COORDINATION WITH OTHER PROVISIONS- Section 280B shall not apply
to amounts which are treated as expenses under this section.
`(d) BASIS REDUCTION- For purposes of this title, the basis of any
property shall be reduced by the portion of the cost of such property taken
into account under subsection (a).
`(e) CONTROLLED GROUPS- For purposes of this section, all persons
treated as a single employer under subsection (b), (c), (m), or (o) of section
414 shall be treated as a single employer.'.
(b) CONFORMING AMENDMENTS-
(1) Section 263(a)(1), as amended by this Act, is amended by
striking `or' at the end of subparagraph (I), by striking the period at the
end of subparagraph (J) and inserting `, or', and by inserting after
subparagraph (J) the following new subparagraph:
`(K) expenditures for which a deduction is allowed under section
179D.'.
(2) Section 263A(c)(3) is amended by inserting `179C,' after
`section'.
(3) Section 312(k)(3)(B), as amended by this Act, is amended by
striking `or 179C' each place it appears in the heading and text and
inserting `, 179C, or 179D'.
(4) Section 1016(a), as amended by this Act, is amended by striking
`and' at the end of paragraph (33), by striking the period at the end of
paragraph (34) and inserting `, and', and by adding at the end the following
new paragraph:
`(35) to the extent provided in section 179D(d).'.
(5) Section 1245(a), as amended by this Act, is amended by inserting
`179D,' after `179C,' both places it appears in paragraphs (2)(C) and
(3)(C).
(6) The table of sections for part VI of subchapter B of chapter 1,
as amended by this Act, is amended by inserting after section 179C the
following new item:
`Sec. 179D. Deduction for capital costs incurred in complying with
Environmental Protection Agency sulfur regulations.'.
(c) EFFECTIVE DATE- The amendment made by this section shall apply to
expenses paid or incurred after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 2304. ENVIRONMENTAL TAX CREDIT.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45L. ENVIRONMENTAL TAX CREDIT.
`(a) IN GENERAL- For purposes of section 38, the amount of the
environmental tax credit determined under this section with respect to any
small business refiner for any taxable year is an amount equal to 5 cents for
every gallon of 15 parts per million or less sulfur diesel produced at a
facility by such small business refiner during such taxable year.
`(1) IN GENERAL- For any small business refiner, the aggregate
amount determined under subsection (a) for any taxable year with respect to
any facility shall not exceed the applicable percentage of the qualified
capital costs paid or incurred by such small business refiner with respect
to such facility during the applicable period, reduced by the credit allowed
under subsection (a) for any preceding year.
`(2) APPLICABLE PERCENTAGE- For purposes of paragraph
(1)--
`(A) IN GENERAL- Except as provided in subparagraph (B), the
applicable percentage is 25 percent.
`(B) REDUCED PERCENTAGE- The percentage described in subparagraph
(A) shall be reduced in the same manner as under section
179D(a)(2)(B)(ii).
`(c) DEFINITIONS- For purposes of this section--
`(1) IN GENERAL- The terms `small business refiner' and `qualified
capital costs' have the same meaning as given in section 179D.
`(2) APPLICABLE PERIOD- The term `applicable period' means, with
respect to any facility, the period beginning on the day after the date
which is 1 year after the date of the enactment of this section and ending
with the date which is 1 year after the date on which the taxpayer must
comply with the applicable EPA regulations with respect to such
facility.
`(3) APPLICABLE EPA REGULATIONS- The term `applicable EPA
regulations' means the Highway Diesel Fuel Sulfur Control Requirements of
the Environmental Protection Agency, as in effect on the date of the
enactment of this section.
`(1) REQUIRED- Not later than the date which is 30 months after the
first day of the first taxable year in which the environmental tax credit is
allowed with respect to qualified capital costs paid or incurred with
respect to a facility, the small business refiner shall obtain a
certification from the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, that the taxpayer's qualified capital
costs with respect to such facility will result in compliance with the
applicable EPA regulations.
`(2) CONTENTS OF APPLICATION- An application for certification shall
include relevant information regarding unit capacities and operating
characteristics sufficient for the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, to determine that such
qualified capital costs are necessary for compliance with the applicable EPA
regulations.
`(3) REVIEW PERIOD- Any application shall be reviewed and notice of
certification, if applicable, shall be made within 60 days of receipt of
such application. In the event the Secretary does not notify the taxpayer of
the results of such certification within such period, the taxpayer may
presume the certification to be issued until so notified.
`(4) STATUTE OF LIMITATIONS- With respect to the credit allowed
under this section--
`(A) the statutory period for the assessment of any deficiency
attributable to such credit shall not expire before the end of the 3-year
period ending on the date that the review period described in paragraph
(3) ends, and
`(B) such deficiency may be assessed before the expiration of such
3-year period notwithstanding the provisions of any other law or rule of
law which would otherwise prevent such assessment.
`(e) CONTROLLED GROUPS- For purposes of this section, all persons
treated as a single employer under subsection (b), (c), (m), or (o) of section
414 shall be treated as a single employer.
`(f) COOPERATIVE ORGANIZATIONS-
`(1) APPORTIONMENT OF CREDIT- In the case of a cooperative
organization described in section 1381(a), any portion of the credit
determined under subsection (a) of this section, for the taxable year may,
at the election of the organization, be apportioned among patrons eligible
to share in patronage dividends on the basis of the quantity or value of
business done with or for such patrons for the taxable year. Such an
election shall be irrevocable for such taxable year.
`(2) TREATMENT OF ORGANIZATIONS AND PATRONS-
`(A) ORGANIZATIONS- The amount of the credit not apportioned to
patrons pursuant to paragraph (1) shall be included in the amount
determined under subsection (a) for the taxable year of the
organization.
`(B) PATRONS- The amount of the credit apportioned to patrons
pursuant to paragraph (1) shall be included in the amount determined under
subsection (a) for the first taxable year of each patron ending on or
after the last day of the payment period (as defined in section 1382(d))
for the taxable year of the organization or, if earlier, for the taxable
year of each patron ending on or after the date on which the patron
receives notice from the cooperative of the apportionment.'.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of
section 38 (relating to general business credit), as amended by this Act, is
amended by striking `plus' at the end of paragraph (21), by striking the
period at the end of paragraph (22) and inserting `, plus', and by adding at
the end the following new paragraph:
`(23) in the case of a small business refiner, the environmental tax
credit determined under section 45L(a).'.
(c) DENIAL OF DOUBLE BENEFIT- Section 280C (relating to certain
expenses for which credits are allowable), as amended by this Act, is amended
by adding after subsection (d) the following new subsection:
`(e) ENVIRONMENTAL TAX CREDIT- No deduction shall be allowed for that
portion of the expenses otherwise allowable as a deduction for the taxable
year which is equal to the amount of the credit determined for the taxable
year under section 45L(a).'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45L. Environmental tax credit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
expenses paid or incurred after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 2305. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION
DEDUCTION.
(a) IN GENERAL- Paragraph (4) of section 613A(d) (relating to certain
refiners excluded) is amended to read as follows:
`(4) CERTAIN REFINERS EXCLUDED- If the taxpayer or 1 or more related
persons engages in the refining of crude oil, subsection (c) shall not apply
to the taxpayer for a taxable year if the average daily refinery runs of the
taxpayer and such persons for the taxable year exceed 60,000 barrels. For
purposes of this paragraph, the average daily refinery runs for any taxable
year shall be determined by dividing the aggregate refinery runs for the
taxable year by the number of days in the taxable year.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
taxable years beginning after December 31, 2002.
SEC. 2306. MARGINAL PRODUCTION INCOME LIMIT EXTENSION.
Section 613A(c)(6)(H) (relating to temporary suspension of taxable
income limit with respect to marginal production), as amended by section
607(a) of the Job Creation and Worker Assistance Act of 2002, is amended by
striking `2004' and inserting `2007'.
SEC. 2307. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.
(a) IN GENERAL- Part VI of subchapter B of chapter 1, as amended by
this Act, is amended by adding at the end the following new section:
`SEC. 199. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES FOR
DOMESTIC OIL AND GAS WELLS.
`A taxpayer shall be entitled to an amortization deduction with
respect to any geological and geophysical expenses incurred in connection with
the exploration for, or development of, oil or gas within the United States
(as defined in section 638) based on a period of 24 months beginning with the
month in which such expenses were incurred.'.
(b) CLERICAL AMENDMENT- The table of sections for part VI of
subchapter B of chapter 1, as amended by this Act, is amended by adding at the
end the following new item:
`Sec. 199. Amortization of geological and geophysical expenditures
for domestic oil and gas wells.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
costs paid or incurred in taxable years beginning after December 31,
2002.
SEC. 2308. AMORTIZATION OF DELAY RENTAL PAYMENTS.
(a) IN GENERAL- Part VI of subchapter B of chapter 1, as amended by
this Act, is amended by adding at the end the following new section:
`SEC. 199A. AMORTIZATION OF DELAY RENTAL PAYMENTS FOR DOMESTIC OIL AND
GAS WELLS.
`(a) IN GENERAL- A taxpayer shall be entitled to an amortization
deduction with respect to any delay rental payments incurred in connection
with the development of oil or gas within the United States (as defined in
section 638) based on a period of 24 months beginning with the month in which
such payments were incurred.'.
`(b) DELAY RENTAL PAYMENTS- For purposes of this section, the term
`delay rental payment' means an amount paid for the privilege of deferring
development of an oil or gas well under an oil or gas lease.'.
(b) CLERICAL AMENDMENT- The table of sections for part VI of
subchapter B of chapter 1, as amended by this Act, is amended by adding at the
end the following new item:
`Sec. 199A. Amortization of delay rental payments for domestic oil
and gas wells.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
amounts paid or incurred in taxable years beginning after December 31,
2002.
SEC. 2309. STUDY OF COAL BED METHANE.
(a) IN GENERAL- The Secretary of the Treasury shall study the effect
of section 29 of the Internal Revenue Code of 1986 on the production of coal
bed methane. Such study shall be made in conjunction with the study to be
undertaken by the Secretary of the Interior on the effects of coal bed methane
production on surface and water resources, as provided in section 607 of the
Energy Policy Act of 2002.
(b) CONTENTS OF STUDY- The study under subsection (a) shall estimate
the total amount of credits under section 29 of the Internal Revenue Code of
1986 claimed annually and in the aggregate which are related to the production
of coal bed methane since the date of the enactment of such section 29. Such
study shall report the annual value of such credits allowable for coal bed
methane compared to the average annual wellhead price of natural gas (per
thousand cubic feet of natural gas). Such study shall also estimate the
incremental increase in production of coal bed methane that has resulted from
the enactment of such section 29, and the cost to the Federal Government, in
terms of the net tax benefits claimed, per thousand cubic feet of incremental
coal bed methane produced annually and in the aggregate since such
enactment.
SEC. 2310. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM
A NONCONVENTIONAL SOURCE.
(a) IN GENERAL- Section 29 is amended by adding at the end the
following new subsection:
`(h) EXTENSION FOR OTHER FACILITIES-
`(1) OIL AND GAS- In the case of a well or facility for producing
qualified fuels described in subparagraph (A) or (B) of subsection (c)(1)
which was drilled or placed in service after the date of the enactment of
this subsection and before January 1, 2005, notwithstanding subsection (f),
this section shall apply with respect to such fuels produced at such well or
facility not later than the close of the 3-year period beginning on the date
that such well is drilled or such facility is placed in service.
`(2) FACILITIES PRODUCING REFINED COAL-
`(A) IN GENERAL- In the case of a facility described in
subparagraph (C) for producing refined coal which was placed in service
after the date of the enactment of this subsection and before January 1,
2007, this section shall apply with respect to fuel produced at such
facility not later than the close of the 5-year period beginning on the
date such facility is placed in service.
`(B) REFINED COAL- For purposes of this paragraph, the term
`refined coal' means a fuel which is a liquid, gaseous, or solid synthetic
fuel produced from coal (including lignite) or high carbon fly ash,
including such fuel used as a feedstock.
`(i) IN GENERAL- A facility is described in this subparagraph if
such facility produces refined coal using a technology that results
in--
`(I) a qualified emission reduction, and
`(II) a qualified enhanced value.
`(ii) QUALIFIED EMISSION REDUCTION- For purposes of this
subparagraph, the term `qualified emission reduction' means a reduction
of at least 20 percent of the emissions of nitrogen oxide and either
sulfur dioxide or mercury released when burning the refined coal
(excluding any dilution caused by materials combined or added during the
production process), as compared to the emissions released when burning
the feedstock coal or comparable coal predominantly available in the
marketplace as of January 1, 2002.
`(iii) QUALIFIED ENHANCED VALUE- For purposes of this
subparagraph, the term `qualified enhanced value' means an increase of
at least 50 percent in the market value of the refined coal (excluding
any increase caused by materials combined or added during the production
process), as compared to the value of the feedstock
coal.
`(iii) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITIES
EXCLUDED- A facility described in this subparagraph shall not include a
qualifying advanced clean coal technology facility (as defined in
section 48A(b)).
`(3) WELLS PRODUCING VISCOUS OIL-
`(A) IN GENERAL- In the case of a well for producing viscous oil
which was placed in service after the date of the enactment of this
subsection and before January 1, 2005, this section shall apply with
respect to fuel produced at such well not later than the close of the
3-year period beginning on the date such well is placed in
service.
`(B) VISCOUS OIL- The term `viscous oil' means heavy oil, as
defined in section 613A(c)(6), except that--
`(i) `22 degrees' shall be substituted for `20 degrees' in
applying subparagraph (F) thereof, and
`(ii) in all cases, the oil gravity shall be measured from the
initial well-head samples, drill cuttings, or down hole
samples.
`(C) WAIVER OF UNRELATED PERSON REQUIREMENT- In the case of
viscous oil, the requirement under subsection (a)(1)(B)(i) of a sale to an
unrelated person shall not apply to any sale to the extent that the
viscous oil is not consumed in the immediate vicinity of the
wellhead.
`(4) COALMINE METHANE GAS-
`(A) IN GENERAL- This section shall apply to coalmine methane
gas--
`(i) captured or extracted by the taxpayer after the date of the
enactment of this subsection and before January 1, 2005,
and
`(ii) utilized as a fuel source or sold by or on behalf of the
taxpayer to an unrelated person after the date of the enactment of this
subsection and before January 1, 2005.
`(B) COALMINE METHANE GAS- For purposes of this paragraph, the
term `coalmine methane gas' means any methane gas which is--
`(i) liberated during qualified coal mining operations,
or
`(ii) extracted up to 5 years in advance of qualified coal
mining operations as part of a specific plan to mine a coal
deposit.
`(C) SPECIAL RULE FOR ADVANCED EXTRACTION- In the case of coalmine
methane gas which is captured in advance of qualified coal mining
operations, the credit under subsection (a) shall be allowed only after
the date the coal extraction occurs in the immediate area where the
coalmine methane gas was removed.
`(D) NONCOMPLIANCE WITH POLLUTION LAWS- For purposes of
subparagraphs (B) and (C), coal mining operations which are not in
compliance with the applicable State and Federal pollution prevention,
control, and permit requirements for any period of time shall not be
considered to be qualified coal mining operations during such
period.
`(5) FACILITIES PRODUCING FUELS FROM AGRICULTURAL AND ANIMAL WASTE-
`(A) IN GENERAL- In the case of facility for producing liquid,
gaseous, or solid fuels from qualified agricultural and animal wastes,
including such fuels when used as feedstocks, which was placed in service
after the date of the enactment of this subsection and before January 1,
2005, this section shall apply with respect to fuel produced at such
facility not later than the close of the 3-year period beginning on the
date such facility is placed in service.
`(B) QUALIFIED AGRICULTURAL AND ANIMAL WASTE- For purposes of this
paragraph, the term `qualified agricultural and animal waste' means
agriculture and animal waste, including by-products, packaging, and any
materials associated with the processing, feeding, selling, transporting,
or disposal of agricultural or animal products or wastes, including wood
shavings, straw, rice hulls, and other bedding for the disposition of
manure.
`(6) CREDIT AMOUNT- In determining the amount of credit allowable
under this section solely by reason of this subsection, the dollar amount
applicable under subsection (a)(1) shall be $3 (without regard to subsection
(b)(2)).'.
(b) EXTENSION FOR CERTAIN FUEL PRODUCED AT EXISTING FACILITIES-
Paragraph (2) of section 29(f) (relating to application of section) is
amended by inserting `(January 1, 2005, in the case of any coke, coke gas,
or natural gas and byproducts produced by coal gasification from lignite in
a facility described in paragraph (1)(B))' after `January 1,
2003'.
(c) EFFECTIVE DATE- The amendment made by this section shall apply to
fuel sold after the date of the enactment of this Act.
SEC. 2311. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR
PROPERTY.
(a) IN GENERAL- Subparagraph (E) of section 168(e)(3) (relating to
classification of certain property) is amended by striking `and' at the end of
clause (ii), by striking the period at the end of clause (iii) and by
inserting `, and', and by adding at the end the following new clause:
`(iv) any natural gas distribution line.'.
(b) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B),
as amended by this Act, is amended by adding after the item relating to
subparagraph (E)(iii) the following new item:
`(E)(iv)
--20'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act, in
taxable years ending after such date.
TITLE XXIV--ELECTRIC UTILITY RESTRUCTURING
PROVISIONS
SEC. 2401. ONGOING STUDY AND REPORTS REGARDING TAX ISSUES RESULTING FROM
FUTURE RESTRUCTURING DECISIONS.
(a) ONGOING STUDY- The Secretary of the Treasury, after consultation
with the Federal Energy Regulatory Commission, shall undertake an ongoing
study of Federal tax issues resulting from nontax decisions on the
restructuring of the electric industry. In particular, the study shall focus
on the effect on tax-exempt bonding authority of public power entities and on
corporate restructuring which results from the restructuring of the electric
industry.
(b) REGULATORY RELIEF- In connection with the study described in
subsection (a), the Secretary of the Treasury should exercise the Secretary's
authority, as appropriate, to modify or suspend regulations that may impede an
electric utility company's ability to reorganize its capital stock structure
to respond to a competitive marketplace.
(c) REPORTS- The Secretary of the Treasury shall report to the
Committee on Finance of the Senate and the Committee on Ways and Means of the
House of Representatives not later than December 31, 2002, regarding Federal
tax issues identified under the study described in subsection (a), and at
least annually thereafter, regarding such issues identified since the
preceding report. Such reports shall also include such legislative
recommendations regarding changes to the private business use rules under
subpart A of part IV of subchapter B of chapter 1 of the Internal Revenue Code
of 1986 as the Secretary of the Treasury deems necessary. The reports shall
continue until such time as the Federal Energy Regulatory Commission has
completed the restructuring of the electric industry.
SEC. 2402. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR DECOMMISSIONING
COSTS.
(a) REPEAL OF LIMITATION ON DEPOSITS INTO FUND BASED ON COST OF
SERVICE; CONTRIBUTIONS AFTER FUNDING PERIOD- Subsection (b) of section 468A is
amended to read as follows:
`(b) LIMITATION ON AMOUNTS PAID INTO FUND- The amount which a taxpayer
may pay into the Fund for any taxable year shall not exceed the ruling amount
applicable to such taxable year.'.
(b) CLARIFICATION OF TREATMENT OF FUND TRANSFERS- Subsection (e) of
section 468A is amended by adding at the end the following new
paragraph:
`(8) TREATMENT OF FUND TRANSFERS- If, in connection with the
transfer of the taxpayer's interest in a nuclear power plant, the taxpayer
transfers the Fund with respect to such power plant to the transferee of
such interest and the transferee elects to continue the application of this
section to such Fund--
`(A) the transfer of such Fund shall not cause such Fund to be
disqualified from the application of this section, and
`(B) no amount shall be treated as distributed from such Fund, or
be includible in gross income, by reason of such transfer.'.
(c) DEDUCTION FOR NUCLEAR DECOMMISSIONING COSTS WHEN PAID- Paragraph
(2) of section 468A(c) is amended to read as follows:
`(2) DEDUCTION OF NUCLEAR DECOMMISSIONING COSTS- In addition to any
deduction under subsection (a), nuclear decommissioning costs paid or
incurred by the taxpayer during any taxable year shall constitute ordinary
and necessary expenses in carrying on a trade or business under section
162.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2002.
SEC. 2403. TREATMENT OF CERTAIN INCOME OF COOPERATIVES.
(a) INCOME FROM OPEN ACCESS AND NUCLEAR DECOMMISSIONING TRANSACTIONS-
(1) IN GENERAL- Subparagraph (C) of section 501(c)(12) is amended by
striking `or' at the end of clause (i), by striking clause (ii), and by
adding at the end the following new clauses:
`(ii) from any open access transaction (other than income
received or accrued directly or indirectly from a
member),
`(iii) from any nuclear decommissioning
transaction,
`(iv) from any asset exchange or conversion transaction,
or
`(v) from the prepayment of any loan, debt, or obligation made,
insured, or guaranteed under the Rural Electrification Act of
1936.'.
(2) DEFINITIONS AND SPECIAL RULES- Paragraph (12) of section 501(c)
is amended by adding at the end the following new subparagraphs:
`(E) For purposes of subparagraph (C)(ii)--
`(i) The term `open access transaction' means any transaction
meeting the open access requirements of any of the following subclauses
with respect to a mutual or cooperative electric
company:
`(I) The provision or sale of transmission service or
ancillary services meets the open access requirements of this
subclause only if such services are provided on a nondiscriminatory
open access basis pursuant to an open access transmission tariff filed
with and approved by FERC, including an acceptable reciprocity tariff,
or under a regional transmission organization agreement approved by
FERC.
`(II) The provision or sale of electric energy distribution
services or ancillary services meets the open access requirements of
this subclause only if such services are provided on a
nondiscriminatory open access basis to end-users served by
distribution facilities owned by the mutual or cooperative electric
company (or its members).
`(III) The delivery or sale of electric energy generated by a
generation facility meets the open access requirements of this
subclause only if such facility is directly connected to distribution
facilities owned by the mutual or cooperative electric company (or its
members) which owns the generation facility, and such distribution
facilities meet the open access requirements of subclause
(II).
`(ii) Clause (i)(I) shall apply in the case of a voluntarily
filed tariff only if the mutual or cooperative electric company files a
report with FERC within 90 days after the date of the enactment of this
subparagraph relating to whether or not such company will join a
regional transmission organization.
`(iii) A mutual or cooperative electric company shall be treated
as meeting the open access requirements of clause (i)(I) if a regional
transmission organization controls the transmission
facilities.
`(iv) References to FERC in this subparagraph shall be treated
as including references to the Public Utility Commission of Texas with
respect to any ERCOT utility (as defined in section 212(k)(2)(B) of the
Federal Power Act (16 U.S.C. 824k(k)(2)(B))) or references to the Rural
Utilities Service with respect to any other facility not subject to FERC
jurisdiction.
`(v) For purposes of this subparagraph--
`(I) The term `transmission facility' means an electric output
facility (other than a generation facility) that operates at an
electric voltage of 69 kV or greater. To the extent provided in
regulations, such term includes any output facility that FERC
determines is a transmission facility under standards applied by FERC
under the Federal Power Act (as in effect on the date of the enactment
of the Energy Tax Incentives Act of 2002).
`(II) The term `regional transmission organization' includes
an independent system operator.
`(III) The term `FERC' means the Federal Energy Regulatory
Commission.
`(F) The term `nuclear decommissioning transaction'
means--
`(i) any transfer into a trust, fund, or instrument established
to pay any nuclear decommissioning costs if the transfer is in
connection with the transfer of the mutual or cooperative electric
company's interest in a nuclear power plant or nuclear power plant
unit,
`(ii) any distribution from any trust, fund, or instrument
established to pay any nuclear decommissioning costs,
or
`(iii) any earnings from any trust, fund, or instrument
established to pay any nuclear decommissioning costs.
`(G) The term `asset exchange or conversion transaction' means any
voluntary exchange or involuntary conversion of any property related to
generating, transmitting, distributing, or selling electric energy by a
mutual or cooperative electric company, the gain from which qualifies for
deferred recognition under section 1031 or 1033, but only if the
replacement property acquired by such company pursuant to such section
constitutes property which is used, or to be used, for--
`(i) generating, transmitting, distributing, or selling electric
energy, or
`(ii) producing, transmitting, distributing, or selling natural
gas.'.
(b) TREATMENT OF INCOME FROM LOAD LOSS TRANSACTIONS- Paragraph (12) of
section 501(c), as amended by subsection (a)(2), is amended by adding after
subparagraph (G) the following new subparagraph:
`(H)(i) In the case of a mutual or cooperative electric company
described in this paragraph or an organization described in section
1381(a)(2)(C), income received or accrued from a load loss transaction
shall be treated as an amount collected from members for the sole purpose
of meeting losses and expenses.
`(ii) For purposes of clause (i), the term `load loss transaction'
means any wholesale or retail sale of electric energy (other than to
members) to the extent that the aggregate sales during the recovery period
does not exceed the load loss mitigation sales limit for such
period.
`(iii) For purposes of clause (ii), the load loss mitigation sales
limit for the recovery period is the sum of the annual load losses for
each year of such period.
`(iv) For purposes of clause (iii), a mutual or cooperative
electric company's annual load loss for each year of the recovery period
is the amount (if any) by which--
`(I) the megawatt hours of electric energy sold during such year
to members of such electric company are less than
`(II) the megawatt hours of electric energy sold during the base
year to such members.
`(v) For purposes of clause (iv)(II), the term `base year'
means--
`(I) the calendar year preceding the start-up year,
or
`(II) at the election of the electric company, the second or
third calendar years preceding the start-up year.
`(vi) For purposes of this subparagraph, the recovery period is
the 7-year period beginning with the start-up year.
`(vii) For purposes of this subparagraph, the start-up year is the
calendar year which includes the date of the enactment of this
subparagraph or, if later, at the election of the mutual or cooperative
electric company--
`(I) the first year that such electric company offers
nondiscriminatory open access, or
`(II) the first year in which at least 10 percent of such
electric company's sales are not to members of such electric
company.
`(viii) A company shall not fail to be treated as a mutual or
cooperative company for purposes of this paragraph or as a corporation
operating on a cooperative basis for purposes of section 1381(a)(2)(C) by
reason of the treatment under clause (i).
`(ix) In the case of a mutual or cooperative electric company,
income from any open access transaction received, or accrued, indirectly
from a member shall be treated as an amount collected from members for the
sole purpose of meeting losses and expenses.'.
(c) EXCEPTION FROM UNRELATED BUSINESS TAXABLE INCOME- Subsection (b)
of section 512 (relating to modifications) is amended by adding at the end the
following new paragraph:
`(18) TREATMENT OF MUTUAL OR COOPERATIVE ELECTRIC COMPANIES- In the
case of a mutual or cooperative electric company described in section
501(c)(12), there shall be excluded income which is treated as member income
under subparagraph (H) thereof.'.
(d) CROSS REFERENCE- Section 1381 is amended by adding at the end the
following new subsection:
`For treatment of income from load loss transactions of
organizations described in subsection (a)(2)(C), see section
501(c)(12)(H).'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 2404. SALES OR DISPOSITIONS TO IMPLEMENT FEDERAL ENERGY REGULATORY
COMMISSION OR STATE ELECTRIC RESTRUCTURING POLICY.
(a) IN GENERAL- Section 451 (relating to general rule for taxable year
of inclusion) is amended by adding at the end the following new
subsection:
`(i) SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FEDERAL
ENERGY REGULATORY COMMISSION OR STATE ELECTRIC RESTRUCTURING POLICY-
`(1) IN GENERAL- For purposes of this subtitle, if a taxpayer elects
the application of this subsection to a qualifying electric transmission
transaction in any taxable year--
`(A) any ordinary income derived from such transaction which would
be required to be recognized under section 1245 or 1250 for such taxable
year (determined without regard to this subsection), and
`(B) any income derived from such transaction in excess of such
ordinary income which is required to be included in gross income for such
taxable year,
shall be so recognized and included ratably over the 8-taxable year
period beginning with such taxable year.
`(2) QUALIFYING ELECTRIC TRANSMISSION TRANSACTION- For purposes of
this subsection, the term `qualifying electric transmission transaction'
means any sale or other disposition before January 1, 2007, of--
`(A) property used by the taxpayer in the trade or business of
providing electric transmission services, or
`(B) any stock or partnership interest in a corporation or
partnership, as the case may be, whose principal trade or business
consists of providing electric transmission services,
but only if such sale or disposition is to an independent
transmission company.
`(3) INDEPENDENT TRANSMISSION COMPANY- For purposes of this
subsection, the term `independent transmission company' means--
`(A) a regional transmission organization approved by the Federal
Energy Regulatory Commission,
`(i) who the Federal Energy Regulatory Commission determines in
its authorization of the transaction under section 203 of the Federal
Power Act (16 U.S.C. 824b) is not a market participant within the
meaning of such Commission's rules applicable to regional transmission
organizations, and
`(ii) whose transmission facilities to which the election under
this subsection applies are under the operational control of a Federal
Energy Regulatory Commission-approved regional transmission organization
before the close of the period specified in such authorization, but not
later than the close of the period applicable under paragraph (1),
or
`(C) in the case of facilities subject to the exclusive
jurisdiction of the Public Utility Commission of Texas, a person which is
approved by that Commission as consistent with Texas State law regarding
an independent transmission organization.
`(4) ELECTION- An election under paragraph (1), once made, shall be
irrevocable.
`(5) NONAPPLICATION OF INSTALLMENT SALES TREATMENT- Section 453
shall not apply to any qualifying electric transmission transaction with
respect to which an election to apply this subsection is made.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
transactions occurring after the date of the enactment of this Act.
SEC. 2405. APPLICATION OF TEMPORARY REGULATIONS TO CERTAIN OUTPUT
CONTRACTS.
In the application of section 1-141-7(c)(4) of the Treasury Temporary
Regulations to output contracts entered into after February 22, 1998, with
respect to an issuer participating in open access with respect to the issuer's
transmission facilities, an output contract in existence on or before such
date that is amended after such date shall be treated as a contract entered
into after such date only if the amendment increases the amount of output sold
under such contract by extending the term of the contract or increasing the
amount of output sold, but such treatment as a contract entered into after
such date shall begin on the effective date of the amendment and shall apply
only with respect to the increased output to be provided under such
contract.
SEC. 2406. TREATMENT OF CERTAIN DEVELOPMENT INCOME OF
COOPERATIVES.
(a) IN GENERAL- Subparagraph (C) of section 501(c)(12), as amended by
this Act, is amended by striking `or' at the end of clause (iv), by striking
the period at the end of clause (v) and insert `, or', and by adding at the
end the following new clause:
`(vi) from the receipt before January 1, 2007, of any money,
property, capital, or any other contribution in aid of construction or
connection charge intended to facilitate the provision of electric
service for the purpose of developing qualified fuels from
nonconventional sources (within the meaning of section
29).'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
TITLE XXV--ADDITIONAL PROVISIONS
SEC. 2501. EXTENSION OF ACCELERATED DEPRECIATION AND WAGE CREDIT
BENEFITS ON INDIAN RESERVATIONS.
(a) SPECIAL RECOVERY PERIOD FOR PROPERTY ON INDIAN RESERVATIONS-
Section 168(j)(8) (relating to termination), as amended by section 613(b) of
the Job Creation and Worker Assistance Act of 2002, is amended by striking
`2004' and inserting `2005'.
(b) INDIAN EMPLOYMENT CREDIT- Section 45A(f) (relating to
termination), as amended by section 613(a) of the Job Creation and Worker
Assistance Act of 2002, is amended by striking `2004' and inserting
`2005'.
SEC. 2502. STUDY OF EFFECTIVENESS OF CERTAIN PROVISIONS BY
GAO.
(a) STUDY- The Comptroller General of the United States shall
undertake an ongoing analysis of--
(1) the effectiveness of the alternative motor vehicles and fuel
incentives provisions under title II and the conservation and energy
efficiency provisions under title III, and
(2) the recipients of the tax benefits contained in such provisions,
including an identification of such recipients by income and other
appropriate measurements.
Such analysis shall quantify the effectiveness of such provisions by
examining and comparing the Federal Government's forgone revenue to the
aggregate amount of energy actually conserved and tangible environmental
benefits gained as a result of such provisions.
(b) REPORTS- The Comptroller General of the United States shall report
the analysis required under subsection (a) to Congress not later than December
31, 2002, and annually thereafter.
SEC. 2503. CREDIT FOR PRODUCTION OF ALASKA NATURAL GAS.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is amended by
adding at the end the following new section:
`SEC. 45M. ALASKA NATURAL GAS.
`(a) IN GENERAL- For purposes of section 38, the Alaska natural gas
credit of any taxpayer for any taxable year is the credit amount per 1,000,000
Btu of Alaska natural gas entering any intake or tie-in point which was
derived from an area of the State of Alaska lying north of 64 degrees North
latitude, which is attributable to the taxpayer and sold by or on behalf of
the taxpayer to an unrelated person during such taxable year (within the
meaning of section 45).
`(b) CREDIT AMOUNT- For purposes of this section--
`(1) IN GENERAL- The credit amount per 1,000,000 Btu of Alaska
natural gas entering any intake or tie-in point which was derived from an
area of the State of Alaska lying north of 64 degrees North latitude
(determined in United States dollars), is the excess of--
`(B) the average monthly price at the AECO C Hub in Alberta,
Canada, for Alaska natural gas for the month in which occurs the date of
such entering.
`(2) INFLATION ADJUSTMENT- In the case of any taxable year beginning
in a calendar year after the first calendar year ending after the date
described in subsection (g)(1), the dollar amount contained in paragraph
(1)(A) shall be increased to an amount equal to such dollar amount
multiplied by the inflation adjustment factor for such calendar year
(determined under section 43(b)(3)(B) by substituting `the calendar year
ending before the date described in section 45M(g)(1)' for
`1990').
`(c) ALASKA NATURAL GAS- For purposes of this section, the term
`Alaska natural gas' means natural gas entering any intake or tie-in point
which was derived from an area of the State of Alaska lying north of 64
degrees North latitude produced in compliance with the applicable State and
Federal pollution prevention, control, and permit requirements from the area
generally known as the North Slope of Alaska (including the continental shelf
thereof within the meaning of section 638(l)), determined without regard to
the area of the Alaska National Wildlife Refuge (including the continental
shelf thereof within the meaning of section 638(l)).
`(1) IN GENERAL- With respect to each 1,000,000 Btu of Alaska
natural gas entering any intake or tie-in point which was derived from an
area of the State of Alaska lying north of 64 degrees North latitude after
the date which is 3 years after the date described in subsection (g)(1), if
the average monthly price described in subsection (b)(1)(B) exceeds 150
percent of the amount described in subsection (b)(1)(A) for the month in
which occurs the date of such entering, the taxpayer's tax under this
chapter for the taxable year shall be increased by an amount equal to the
lesser of--
`(B) the aggregate decrease in the credits allowed under section
38 for all prior taxable years which would have resulted if the Alaska
natural gas credit received by the taxpayer for such years had been
zero.
`(A) TAX BENEFIT RULE- The tax for the taxable year shall be
increased under paragraph (1) only with respect to credits allowed by
reason of this section which were used to reduce tax liability. In the
case of credits not so used to reduce tax liability, the carryforwards and
carrybacks under section 39 shall be appropriately adjusted.
`(B) NO CREDITS AGAINST TAX- Any increase in tax under this
subsection shall not be treated as a tax imposed by this chapter for
purposes of determining the amount of any credit under this chapter or for
purposes of section 55.
`(e) APPLICATION OF RULES- For purposes of this section, rules similar
to the rules of paragraphs (3), (4), and (5) of section 45(d) shall
apply.
`(f) NO DOUBLE BENEFIT- The amount of any deduction or other credit
allowable under this chapter for any fuel taken into account in computing the
amount of the credit determined under subsection (a) shall be reduced by the
amount of such credit attributable to such fuel.
`(g) APPLICATION OF SECTION- This section shall apply to Alaska
natural gas entering any intake or tie-in point which was derived from an area
of the State of Alaska lying north of 64 degrees North latitude for the
period--
`(1) beginning with the later of--
`(B) the initial date for the interstate transportation of such
Alaska natural gas, and
`(2) except with respect to subsection (d), ending with the date
which is 15 years after the date described in paragraph (1).'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b), as amended by
this Act, is amended by striking `plus' at the end of paragraph (22), by
striking the period at the end of paragraph (23) and inserting `, plus', and
by adding at the end the following new paragraph:
`(24) The Alaska natural gas credit determined under section
45M(a).'.
(c) Allowing Credit Against Entire Regular Tax and Minimum Tax-
(1) IN GENERAL- Subsection (c) of section 38 (relating to limitation
based on amount of tax), as amended by this Act, is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
`(5) SPECIAL RULES FOR ALASKA NATURAL GAS CREDIT-
`(A) IN GENERAL- In the case of the Alaska natural gas
credit--
`(i) this section and section 39 shall be applied separately
with respect to the credit, and
`(ii) in applying paragraph (1) to the credit--
`(I) the amounts in subparagraphs (A) and (B) thereof shall be
treated as being zero, and
`(II) the limitation under paragraph (1) (as modified by
subclause (I)) shall be reduced by the credit allowed under subsection
(a) for the taxable year (other than the Alaska natural gas
credit).
`(B) ALASKA NATURAL GAS CREDIT- For purposes of this subsection,
the term `Alaska natural gas credit' means the credit allowable under
subsection (a) by reason of section 45M(a).'.
(2) CONFORMING AMENDMENTS- Subclause (II) of section
38(c)(2)(A)(ii), as amended by this Act, subclause (II) of section
38(c)(3)(A)(ii), as amended by this Act, and subclause (II) of section
38(c)(4)(A)(ii), as added by this Act, are each amended by inserting `or the
Alaska natural gas credit' after `producer credit'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 45M. Alaska natural gas.'.
SEC. 2504. SALE OF GASOLINE AND DIESEL FUEL AT DUTY-FREE SALES
ENTERPRISES.
(a) PROHIBITION- Section 555(b) of the Tariff Act of 1930 (19 U.S.C.
1555(b)) is amended--
(1) by redesignating paragraphs (6) through (8) as paragraphs (7)
through (9), respectively; and
(2) by inserting after paragraph (5) the following:
`(6) Any gasoline or diesel fuel sold at a duty-free sales
enterprise shall be considered to be entered for consumption into the
customs territory of the United States.'.
(b) CONSTRUCTION- The amendments made by this section shall not be
construed to create any inference with respect to the interpretation of any
provision of law as such provision was in effect on the day before the date of
enactment of this Act.
(c) EFFECTIVE DATE- The amendments made by this section shall take
effect on the date of enactment of this Act.
SEC. 2505. TREATMENT OF DAIRY PROPERTY.
(a) QUALIFIED DISPOSITION OF DAIRY PROPERTY TREATED AS INVOLUNTARY
CONVERSION-
(1) IN GENERAL- Section 1033 (relating to involuntary conversions)
is amended by designating subsection (k) as subsection (l) and inserting
after subsection (j) the following new subsection:
`(k) QUALIFIED DISPOSITION TO IMPLEMENT BOVINE TUBERCULOSIS
ERADICATION PROGRAM-
`(1) IN GENERAL- For purposes of this subtitle, if a taxpayer elects
the application of this subsection to a qualified disposition:
`(A) TREATMENT AS INVOLUNTARY CONVERSION- Such disposition shall
be treated as an involuntary conversion to which this section
applies.
`(B) MODIFICATION OF SIMILAR PROPERTY REQUIREMENT- Property to be
held by the taxpayer either for productive use in a trade or business or
for investment shall be treated as property similar or related in service
or use to the property disposed of.
`(C) EXTENSION OF PERIOD FOR REPLACING PROPERTY- Subsection
(a)(2)(B)(i) shall be applied by substituting `4 years' for `2
years'.
`(D) WAIVER OF UNRELATED PERSON REQUIREMENT- Subsection (i)
(relating to replacement property must be acquired from unrelated person
in certain cases) shall not apply.
`(E) EXPANDED CAPITAL GAIN FOR CATTLE AND HORSES- Section
1231(b)(3)(A) shall be applied by substituting `1 month' for `24
months'.
`(2) QUALIFIED DISPOSITION-
`(A) IN GENERAL- For purposes of this subsection, the term
`qualified disposition' means the disposition of dairy property which is
certified by the Secretary of Agriculture as having been the subject of an
agreement under the bovine tuberculosis eradication program, as
implemented pursuant to the Declaration of Emergency Because of Bovine
Tuberculosis (65 Federal Register 63,227 (2000)).
`(B) PAYMENTS RECEIVED IN CONNECTION WITH THE BOVINE TUBERCULOSIS
ERADICATION PROGRAM- For purposes of this subsection, any amount received
by a taxpayer in connection with an agreement under such bovine
tuberculosis eradication program shall be treated as received in a
qualified disposition.
`(C) TRANSMITTAL OF CERTIFICATIONS- The Secretary of Agriculture
shall transmit copies of certifications under this paragraph to the
Secretary.
`(3) ALLOWANCE OF THE ADJUSTED BASIS OF CERTIFIED DAIRY PROPERTY AS
A DEPRECIATION DEDUCTION- The adjusted basis of any property certified under
paragraph (2)(A) shall be allowed as a depreciation deduction under section
167 for the taxable year which includes the date of the certification
described in paragraph (2)(A).
`(4) DAIRY PROPERTY- For purposes of this subsection, the term
`dairy property' means all tangible or intangible property used in
connection with a dairy business or a dairy processing plant.
`(5) SPECIAL RULES FOR CERTAIN BUSINESS ORGANIZATIONS-
`(A) S CORPORATIONS- In the case of an S corporation, gain on a
qualified disposition shall not be treated as recognized for the purposes
of section 1374 (relating to tax imposed on certain built-in
gains).
`(B) PARTNERSHIPS- In the case of a partnership which dissolves in
anticipation of a qualified disposition (including in anticipation of
receiving the amount described in paragraph (2)(B)), the dairy property
owned by the partners of such partnership at the time of such disposition
shall be treated, for the purposes of this section and notwithstanding any
regulation or rule of law, as owned by such partners at the time of such
disposition.
`(6) TERMINATION- This subsection shall not apply to dispositions
made after December 31, 2006.'.
(2) EFFECTIVE DATE- The amendment made by this subsection shall
apply to dispositions made and amounts received in taxable years ending
after May 22, 2001.
(b) DEDUCTION OF QUALIFIED RECLAMATION EXPENDITURES-
(1) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations), as amended by this
Act, is amended by adding at the end the following new section:
`SEC. 199B. EXPENSING OF DAIRY PROPERTY RECLAMATION COSTS.
`(a) IN GENERAL- Notwithstanding section 280B (relating to demolition
of structures), a taxpayer may elect to treat any qualified reclamation
expenditure which is paid or incurred by the taxpayer as an expense which is
not chargeable to capital account. Any expenditure which is so treated shall
be allowed as a deduction for the taxable year in which it is paid or
incurred.
`(b) QUALIFIED RECLAMATION EXPENDITURE-
`(1) IN GENERAL- For purposes of this subparagraph, the term
`qualified reclamation expenditure' means amounts otherwise chargeable to
capital account and paid or incurred to convert any real property certified
under section 1033(k)(2) (relating to qualified disposition) into unimproved
land.
`(2) SPECIAL RULE FOR EXPENDITURES FOR DEPRECIABLE PROPERTY- A rule
similar to the rule of section 198(b)(2) (relating to special rule for
expenditures for depreciable property) shall apply for purposes of paragraph
(1).
`(c) DEDUCTION RECAPTURED AS ORDINARY INCOME- Rules similar to the
rules of section 198(e) (relating to deduction recaptured as ordinary income
on sale, etc.) shall apply with respect to any qualified reclamation
expenditure.
`(d) TERMINATION- This section shall not apply to expenditures paid or
incurred after December 31, 2006.'.
(2) CLERICAL AMENDMENT- The table of sections for part VI of
subchapter B of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:
`Sec. 199B. Expensing of dairy property reclamation costs.'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall
apply to expenditures paid or incurred in taxable years ending after May 22,
2001.
SEC. 2506. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRICULTURAL
AERIAL APPLICATORS.
(a) NO WAIVER BY FARM OWNER, TENANT, OR OPERATOR NECESSARY-
Subparagraph (B) of section 6420(c)(4) (relating to certain farming use other
than by owner, etc.) is amended to read as follows:
`(B) if the person so using the gasoline is an aerial or other
applicator of fertilizers or other substances and is the ultimate
purchaser of the gasoline, then subparagraph (A) of this paragraph shall
not apply and the aerial or other applicator shall be treated as having
used such gasoline on a farm for farming purposes.'.
(b) EXEMPTION INCLUDES FUEL USED BETWEEN AIRFIELD AND FARM- Section
6420(c)(4), as amended by subsection (a), is amended by adding at the end the
following new flush sentence:
`For purposes of this paragraph, in the case of an aerial
applicator, gasoline shall be treated as used on a farm for farming purposes
if the gasoline is used for the direct flight between the airfield and 1 or
more farms.'.
(c) EXEMPTION FROM TAX ON AIR TRANSPORTATION OF PERSONS FOR FORESTRY
PURPOSES EXTENDED TO FIXED-WING AIRCRAFT- Subsection (f) of section 4261
(relating to tax on air transportation of persons) is amended to read as
follows:
`(f) EXEMPTION FOR CERTAIN USES- No tax shall be imposed under
subsection (a) or (b) on air transportation--
`(1) by helicopter for the purpose of transporting individuals,
equipment, or supplies in the exploration for, or the development or removal
of, hard minerals, oil, or gas, or
`(2) by helicopter or by fixed-wing aircraft for the purpose of the
planting, cultivation, cutting, or transportation of, or caring for, trees
(including logging operations),
but only if the helicopter or fixed-wing aircraft does not take off
from, or land at, a facility eligible for assistance under the Airport and
Airway Development Act of 1970, or otherwise use services provided pursuant to
section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United
States Code, during such use. In the case of helicopter transportation
described in paragraph (1), this subsection shall be applied by treating each
flight segment as a distinct flight.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
fuel use or air transportation after December 31, 2001, and before January 1,
2003.
SEC. 2507. MODIFICATION OF RURAL AIRPORT DEFINITION.
(a) IN GENERAL- Clause (ii) of section 4261(e)(1)(B) (defining rural
airport) is amended by striking the period at the end of subclause (II) and
inserting `, or' and by adding at the end the following new subclause:
`(III) is not connected by paved roads to another
airport.'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
calendar years beginning after 2002.
SEC. 2508. EXEMPTION FROM TICKET TAXES FOR TRANSPORTATION PROVIDED BY
SEAPLANES.
(a) IN GENERAL- The taxes imposed by sections 4261 and 4271 shall not
apply to transportation by a seaplane with respect to any segment consisting
of a takeoff from, and a landing on, water.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
calendar years beginning after 2002.
DIVISION I--IRAQ OIL IMPORT RESTRICTION
TITLE XXVI--IRAQ OIL IMPORT RESTRICTION
SEC. 2601. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE- This title can be cited as the `Iraq Petroleum Import
Restriction Act of 2002'.
(b) FINDINGS- Congress finds that--
(1) the Government of the Republic of Iraq--
(A) has failed to comply with the terms of United Nations Security
Council Resolution 687 regarding unconditional Iraqi acceptance of the
destruction, removal, or rendering harmless, under international
supervision, of all nuclear, chemical and biological weapons and all
stocks of agents and all related subsystems and components and all
research, development, support and manufacturing facilities, as well as
all ballistic missiles with a range greater than 150 kilometers and
related major parts, and repair and production facilities and has failed
to allow United Nations inspectors access to sites used for the production
or storage of weapons of mass destruction;
(B) routinely contravenes the terms and. conditions of UNSC
Resolution 661, authorizing the export of petroleum products from Iraq in
exchange for food, medicine and other humanitarian products by conducting
a routine and extensive program to sell such products outside of the
channels established by UNSC Resolution 661 in exchange for military
equipment and materials to be used in pursuit of its program to develop
weapons of mass destruction in order to threaten the United States and its
allies in the Persian Gulf and surrounding regions;
(C) has failed to adequately draw down upon the amounts received
in the Escrow Account established by UNSC Resolution 986 to purchase food,
medicine and other humanitarian products required by its citizens,
resulting in massive humanitarian suffering by the Iraqi
people;
(D) conducts a periodic and systematic campaign to harass and
obstruct the enforcement of the United States- and United Kingdom-enforced
`No-Fly Zones' in effect in the Republic of Iraq;
(E) routinely manipulates the petroleum export production volumes
permitted under UNSC Resolution 661 in order to create uncertainty in
global energy markets, and therefore threatens the economic security of
the United States;
(F) pays bounties to the families of suicide bombers in order to
encourage the murder of Israeli civilians;
(2) further imports of petroleum products from the Republic of Iraq
are inconsistent with the national security and foreign policy interests of
the United States and should be eliminated until such time as they are not
so inconsistent.
SEC. 2602. PROHIBITION ON IRAQI-ORIGIN PETROLEUM IMPORTS.
The direct or indirect import from Iraq of Iraqi-origin petroleum and
petroleum products is prohibited, notwithstanding an authorization by the
Committee established by UNSC Resolution 661 or its designee, or any other
order to the contrary.
SEC. 2603. TERMINATION/PRESIDENTIAL CERTIFICATION.
This title will remain in effect until such time as the President,
after consultation with the relevant committees in Congress, certifies to the
Congress that--
(1) Iraq is in substantial compliance with the terms of--
(A) UNSC Resolution 687; and
(B) UNSC Resolution 986 prohibiting smuggling of oil in
circumvention of the `Oil-for-Food' program; and
(2) ceases the practice of compensating the families of suicide
bombers in order to encourage the murder of Israeli citizens; or
that
(3) resuming the importation of Iraqi-origin petroleum and petroleum
products would not be inconsistent with the national security and foreign
policy interests of the United States.
SEC. 2604. HUMANITARIAN INTERESTS.
It is the sense of the Senate that the President should make all
appropriate efforts to ensure that the humanitarian needs of the Iraqi people
are not negatively affected by this Act, and should encourage through public,
private, domestic and international means the direct or indirect sale,
donation or other transfer to appropriate nongovernmental health and
humanitarian organizations and individuals within Iraq of food, medicine and
other humanitarian products.
SEC. 2605. DEFINITIONS.
(a) 661 COMMITTEE- The term 661 Committee means the Security Council
Committee established by UNSC Resolution 661, and persons acting for or on
behalf of the Committee under its specific delegation of authority for the
relevant matter or category of activity, including the overseers appointed by
the United Nations Secretary-General to examine and approve agreements for
purchases of petroleum and petroleum products from the Government of Iraq
pursuant to UNSC Resolution 986.
(b) UNSC Resolution 661- The term UNSC Resolution 661 means United
Nations Security Council Resolution No. 661, adopted August 6, 1990,
prohibiting certain transactions with respect to Iraq and Kuwait.
(c) UNSC Resolution 687- The term UNSC Resolution 687 means United
Nations Security Council Resolution 687, adopted April 3, 1991.
(d) UNSC Resolution 986- The term UNSC Resolution 986 means United
Nations Security Council Resolution 986, adopted April 14, 1995.
SEC. 2606. EFFECTIVE DATE.
The prohibition on importation of Iraqi-origin petroleum and petroleum
products shall be effective 30 days after enactment of this Act.
DIVISION J--MISCELLANEOUS
TITLE XXVII--MISCELLANEOUS PROVISION
SEC. 2701. FAIR TREATMENT OF PRESIDENTIAL JUDICIAL NOMINEES.
It is the sense of the Senate that, in the interests of the
administration of justice, the Senate Judiciary Committee should along with
its other legislative and oversight responsibilities, continue to hold regular
hearings on judicial nominees and should, in accordance with the precedents
and practices of the Committee, schedule hearings on the nominees submitted by
the President on May 9, 2001, and resubmitted on September 5, 2001,
expeditiously.
Attest:
Secretary.
107th CONGRESS
2d Session
H. R. 4
AMENDMENT
END