HR 4 EH
107th CONGRESS
1st Session
H. R. 4
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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Securing America's Future
Energy Act of 2001' or the `SAFE Act of 2001'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
DIVISION A
TITLE I--ENERGY CONSERVATION
Subtitle A--Reauthorization of Federal Energy Conservation Programs
Sec. 101. Authorization of appropriations.
Subtitle B--Federal Leadership in Energy Conservation
Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal
energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility
incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump
efficiency.
Sec. 125. Advanced building efficiency testbed.
Sec. 126. Use of interval data in Federal buildings.
Sec. 127. Review of Energy Savings Performance Contract program.
Sec. 128. Capitol complex.
Subtitle C--State Programs
Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools and
hospitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 135. High performance public buildings.
Subtitle D--Energy Efficiency for Consumer Products
Sec. 141. Energy Star program.
Sec. 141A. Energy sun renewable and alternative energy program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.
Subtitle E--Energy Efficient Vehicles
Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.
Subtitle F--Other Provisions
Sec. 161. Review of regulations to eliminate barriers to emerging energy
technology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration
technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.
TITLE II--AUTOMOBILE FUEL ECONOMY
Sec. 201. Average fuel economy standards for nonpassenger
automobiles.
Sec. 202. Consideration of prescribing different average fuel economy
standards for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for
automobiles.
TITLE III--NUCLEAR ENERGY
Sec. 301. License period.
Sec. 302. Cost recovery from Government agencies.
Sec. 303. Depleted uranium hexafluoride.
Sec. 304. Nuclear Regulatory Commission meetings.
Sec. 305. Cooperative research and development and special demonstration
projects for the uranium mining industry.
Sec. 306. Maintenance of a viable domestic uranium conversion
industry.
Sec. 307. Paducah decontamination and decommissioning plan.
Sec. 308. Study to determine feasibility of developing commercial
nuclear energy production facilities at existing department of energy
sites.
Sec. 309. Prohibition of commercial sales of uranium by the United
States until 2009.
TITLE IV--HYDROELECTRIC ENERGY
Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.
TITLE V--FUELS
Sec. 501. Tank draining during transition to summertime RFG.
Sec. 502. Gasoline blendstock requirements.
Sec. 503. Boutique fuels.
Sec. 504. Funding for MTBE contamination.
TITLE VI--RENEWABLE ENERGY
Sec. 601. Assessment of renewable energy resources.
Sec. 602. Renewable energy production incentive.
Sec. 603. Study of ethanol from solid waste loan guarantee
program.
Sec. 604. Study of renewable fuel content.
TITLE VII--PIPELINES
Sec. 701. Prohibition on certain pipeline route.
Sec. 702. Historic pipelines.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 801. Waste reduction and use of alternatives.
Sec. 802. Annual report on United States energy independence.
Sec. 803. Study of aircraft emissions.
DIVISION B
Sec. 2006. Authorizations.
Sec. 2007. Balance of funding priorities.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
Subtitle A--Alternative Fuel Vehicles
Sec. 2103. Pilot program.
Sec. 2104. Reports to Congress.
Sec. 2105. Authorization of appropriations.
Subtitle B--Distributed Power Hybrid Energy Systems
Sec. 2124. High power density industry program.
Sec. 2125. Micro-cogeneration energy technology.
Sec. 2128. Voluntary consensus standards.
Subtitle C--Secondary Electric Vehicle Battery Use
Sec. 2132. Establishment of secondary electric vehicle battery use
program.
Sec. 2133. Authorization of appropriations.
Subtitle D--Green School Buses
Sec. 2142. Establishment of pilot program.
Sec. 2143. Fuel cell bus development and demonstration program.
Sec. 2144. Authorization of appropriations.
Subtitle E--Next Generation Lighting Initiative
Sec. 2153. Next Generation Lighting Initiative.
Sec. 2155. Grant program.
Subtitle F--Department of Energy Authorization of Appropriations
Sec. 2161. Authorization of appropriations.
Subtitle G--Environmental Protection Agency Office of Air and Radiation
Authorization of Appropriations
Sec. 2172. Authorization of appropriations.
Sec. 2173. Limits on use of funds.
Sec. 2175. Limitation on demonstration and commercial applications of
energy technology.
Sec. 2176. Reprogramming.
Sec. 2177. Budget request format.
Sec. 2178. Other provisions.
Subtitle H--National Building Performance Initiative
Sec. 2181. National Building Performance Initiative.
TITLE II--RENEWABLE ENERGY
Subtitle A--Hydrogen
Sec. 2204. Reports to Congress.
Sec. 2205. Hydrogen research and development.
Sec. 2206. Demonstrations.
Sec. 2207. Technology transfer.
Sec. 2208. Coordination and consultation.
Sec. 2209. Advisory Committee.
Sec. 2210. Authorization of appropriations.
Subtitle B--Bioenergy
Sec. 2224. Authorization.
Sec. 2225. Authorization of appropriations.
Subtitle C--Transmission Infrastructure Systems
Sec. 2241. Transmission infrastructure systems research, development,
demonstration, and commercial application.
Subtitle D--Department of Energy Authorization of Appropriations
Sec. 2261. Authorization of appropriations.
TITLE III--NUCLEAR ENERGY
Subtitle A--University Nuclear Science and Engineering
Sec. 2303. Department of Energy program.
Sec. 2304. Authorization of appropriations.
Subtitle B--Advanced Fuel Recycling Technology Research and Development
Program
Subtitle C--Department of Energy Authorization of Appropriations
Sec. 2341. Nuclear Energy Research Initiative.
Sec. 2342. Nuclear Energy Plant Optimization program.
Sec. 2343. Nuclear energy technologies.
Sec. 2344. Authorization of appropriations.
TITLE IV--FOSSIL ENERGY
Subtitle A--Coal
Sec. 2401. Coal and related technologies programs.
Subtitle B--Oil and Gas
Sec. 2421. Petroleum-oil technology.
Sec. 2423. Natural gas and oil deposits report.
Sec. 2424. Oil shale research.
Subtitle C--Ultra-Deepwater and Unconventional Drilling
Sec. 2443. Ultra-deepwater program.
Sec. 2444. National Energy Technology Laboratory.
Sec. 2445. Advisory Committee.
Sec. 2446. Research Organization.
Sec. 2448. Plan and funding.
Subtitle D--Fuel Cells
Subtitle E--Department of Energy Authorization of Appropriations
Sec. 2481. Authorization of appropriations.
TITLE V--SCIENCE
Subtitle A--Fusion Energy Sciences
Sec. 2503. Plan for fusion experiment.
Sec. 2504. Plan for fusion energy sciences program.
Sec. 2505. Authorization of appropriations.
Subtitle B--Spallation Neutron Source
Sec. 2522. Authorization of appropriations.
Subtitle C--Facilities, Infrastructure, and User Facilities
Sec. 2542. Facility and infrastructure support for nonmilitary energy
laboratories.
Sec. 2543. User facilities.
Subtitle D--Advisory Panel on Office of Science
Sec. 2561. Establishment.
Subtitle E--Department of Energy Authorization of Appropriations
Sec. 2581. Authorization of appropriations.
TITLE VI--MISCELLANEOUS
Subtitle A--General Provisions for the Department of Energy
Sec. 2601. Research, development, demonstration, and commercial
application of energy technology programs, projects, and activities.
Sec. 2602. Limits on use of funds.
Sec. 2604. Limitation on demonstration and commercial application of
energy technology.
Sec. 2605. Reprogramming.
Subtitle B--Other Miscellaneous Provisions
Sec. 2611. Notice of reorganization.
Sec. 2612. Limits on general plant projects.
Sec. 2613. Limits on construction projects.
Sec. 2614. Authority for conceptual and construction design.
Sec. 2615. National Energy Policy Development Group mandated
reports.
Sec. 2616. Periodic reviews and assessments.
DIVISION C
TITLE I--CONSERVATION
Sec. 3101. Credit for residential solar energy property.
Sec. 3102. Extension and expansion of credit for electricity produced
from renewable resources.
Sec. 3103. Credit for qualified stationary fuel cell powerplants.
Sec. 3104. Alternative motor vehicle credit.
Sec. 3105. Extension of deduction for certain refueling property.
Sec. 3106. Modification of credit for qualified electric vehicles.
Sec. 3107. Tax credit for energy efficient appliances.
Sec. 3108. Credit for energy efficiency improvements to existing
homes.
Sec. 3109. Business credit for construction of new energy efficient
home.
Sec. 3110. Allowance of deduction for energy efficient commercial
building property.
Sec. 3111. Allowance of deduction for qualified energy management
devices and retrofitted qualified meters.
Sec. 3112. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 3113. Energy credit for combined heat and power system
property.
Sec. 3114. New nonrefundable personal credits allowed against regular
and minimum taxes.
Sec. 3115. Phaseout of 4.3-cent motor fuel excise taxes on railroads and
inland waterway transportation which remain in general fund.
Sec. 3116. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 3117. Credit for investment in qualifying advanced clean coal
technology.
Sec. 3118. Credit for production from qualifying advanced clean coal
technology.
TITLE II--RELIABILITY
Sec. 3201. Natural gas gathering lines treated as 7-year property.
Sec. 3202. Natural gas distribution lines treated as 10-year
property.
Sec. 3203. Petroleum refining property treated as 7-year property.
Sec. 3204. Expensing of capital costs incurred in complying with
environmental protection agency sulfur regulations.
Sec. 3205. Environmental tax credit.
Sec. 3206. Determination of small refiner exception to oil depletion
deduction.
Sec. 3207. Tax-exempt bond financing of certain electric
facilities.
Sec. 3208. Sales or dispositions to implement Federal Energy Regulatory
Commission or State electric restructuring policy.
Sec. 3209. Distributions of stock to implement Federal Energy Regulatory
Commission or State electric restructuring policy.
Sec. 3210. Modifications to special rules for nuclear decommissioning
costs.
Sec. 3211. Treatment of certain income of cooperatives.
Sec. 3212. Repeal of requirement of certain approved terminals to offer
dyed diesel fuel and kerosene for nontaxable purposes.
Sec. 3213. Arbitrage rules not to apply to prepayments for natural
gas.
TITLE III--PRODUCTION
Sec. 3301. Oil and gas from marginal wells.
Sec. 3302. Temporary suspension of limitation based on 65 percent of
taxable income and extension of suspension of taxable income limit with
respect to marginal production.
Sec. 3303. Deduction for delay rental payments.
Sec. 3304. Election to expense geological and geophysical
expenditures.
Sec. 3305. Five-year net operating loss carryback for losses
attributable to operating mineral interests of oil and gas producers.
Sec. 3306. Extension and modification of credit for producing fuel from
a nonconventional source.
Sec. 3307. Business related energy credits allowed against regular and
minimum tax.
Sec. 3308. Temporary repeal of alternative minimum tax preference for
intangible drilling costs.
Sec. 3309. Allowance of enhanced recovery credit against the alternative
minimum tax.
Sec. 3310. Extension of certain benefits for energy-related businesses
on Indian reservations.
DIVISION D
Sec. 4101. Capacity building for energy-efficient, affordable
housing.
Sec. 4102. Increase of CDBG public services cap for energy conservation
and efficiency activities.
Sec. 4103. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 4104. Public housing capital fund.
Sec. 4105. Grants for energy-conserving improvements for assisted
housing.
Sec. 4106. North American Development Bank.
DIVISION E
Sec. 5003. Clean coal power initiative.
Sec. 5004. Cost and performance goals.
Sec. 5005. Authorization of appropriations.
Sec. 5006. Project criteria.
Sec. 5008. Clean coal centers of excellence.
DIVISION F
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
Sec. 6101. Study of existing rights-of-way on Federal lands to determine
capability to support new pipelines or other transmission facilities.
Sec. 6102. Inventory of energy production potential of all Federal
public lands.
Sec. 6103. Review of regulations to eliminate barriers to emerging
energy technology.
Sec. 6104. Interagency agreement on environmental review of interstate
natural gas pipeline projects.
Sec. 6105. Enhancing energy efficiency in management of Federal
lands.
Sec. 6106. Efficient infrastructure development.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
Sec. 6202. Lease sales in Western and Central Planning Area of the Gulf
of Mexico.
Sec. 6203. Savings clause.
Sec. 6204. Analysis of Gulf of Mexico field size distribution,
international competitiveness, and incentives for development.
Subtitle B--Improvements to Federal Oil and Gas Management
Sec. 6222. Study of impediments to efficient lease operations.
Sec. 6223. Elimination of unwarranted denials and stays.
Sec. 6224. Limitations on cost recovery for applications.
Sec. 6225. Consultation with Secretary of Agriculture.
Subtitle C--Miscellaneous
Sec. 6231. Offshore subsalt development.
Sec. 6232. Program on oil and gas royalties in kind.
Sec. 6233. Marginal well production incentives.
Sec. 6234. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 6235. Encouragement of State and provincial prohibitions on
off-shore drilling in the Great Lakes.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
Sec. 6301. Royalty reduction and relief.
Sec. 6302. Exemption from royalties for direct use of low temperature
geothermal energy resources.
Sec. 6303. Amendments relating to leasing on Forest Service lands.
Sec. 6304. Deadline for determination on pending noncompetitive lease
applications.
Sec. 6305. Opening of public lands under military jurisdiction.
Sec. 6306. Application of amendments.
Sec. 6307. Review and report to Congress.
Sec. 6308. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE IV--HYDROPOWER
Sec. 6401. Study and report on increasing electric power production
capability of existing facilities.
Sec. 6402. Installation of powerformer at Folsom power plant,
California.
Sec. 6403. Study and implementation of increased operational
efficiencies in hydroelectric power projects.
Sec. 6404. Shift of project loads to off-peak periods.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
Sec. 6503. Leasing program for lands within the Coastal Plain.
Sec. 6505. Grant of leases by the Secretary.
Sec. 6506. Lease terms and conditions.
Sec. 6507. Coastal Plain environmental protection.
Sec. 6508. Expedited judicial review.
Sec. 6509. Rights-of-way across the Coastal Plain.
Sec. 6511. Local government impact aid and community service
assistance.
Sec. 6512. Revenue allocation.
TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
Sec. 6601. Energy conservation by the Department of the Interior.
Sec. 6602. Amendment to Buy Indian Act.
TITLE VII--COAL
Sec. 6701. Limitation on fees with respect to coal lease applications
and documents.
Sec. 6703. Payment of advance royalties under coal leases.
Sec. 6704. Elimination of deadline for submission of coal lease
operation and reclamation plan.
TITLE VIII--INSULAR AREAS ENERGY SECURITY
Sec. 6801. Insular areas energy security.
DIVISION G
SEC. 2. ENERGY POLICY.
It shall be the sense of the Congress that the United States should take
all actions necessary in the areas of conservation, efficiency, alternative
source, technology development, and domestic production to reduce the United
States dependence on foreign energy sources from 56 percent to 45 percent by
January 1, 2012, and to reduce United States dependence on Iraqi energy
sources from 700,000 barrels per day to 250,000 barrels per day by January 1,
2012.
DIVISION A
SEC. 100. SHORT TITLE.
This division may be cited as the `Energy Advancement and Conservation Act
of 2001'.
TITLE I--ENERGY CONSERVATION
Subtitle A--Reauthorization of Federal Energy Conservation
Programs
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Section 660 of the Department of Energy Organization Act (42 U.S.C. 7270)
is amended as follows:
(1) By inserting `(a)' before `Appropriations'.
(2) By inserting at the end the following new subsection:
`(b) There are hereby authorized to be appropriated to the Department of
Energy for fiscal year 2002, $950,000,000; for fiscal year 2003,
$1,000,000,000; for fiscal year 2004, $1,050,000,000; for fiscal year 2005,
$1,100,000,000; and for fiscal year 2006, $1,150,000,000, to carry out energy
efficiency activities under the following laws, such sums to remain available
until expended:
`(1) Energy Policy and Conservation Act, including section 256(d)(42
U.S.C. 6276(d)) (promote export of energy efficient products), sections 321
through 346 (42 U.S.C. 6291-6317) (appliances program).
`(2) Energy Conservation and Production Act, including sections 301
through 308 (42 U.S.C. 6831-6837) (energy conservation standards for new
buildings).
`(3) National Energy Conservation Policy Act, including sections 541-551
(42 U.S.C. 8251-8259) (Federal Energy Management Program).
`(4) Energy Policy Act of 1992, including sections 103 (42 U.S.C. 13458)
(energy efficient lighting and building centers), 121 (42 U.S.C. 6292 note)
(energy efficiency labeling for windows and window systems), 125 (42 U.S.C.
6292 note) (energy efficiency information for commercial office equipment),
126 (42 U.S.C. 6292 note) (energy efficiency information for luminaires),
131 (42 U.S.C. 6348) (energy efficiency in industrial facilities), and 132
(42 U.S.C. 6349) (process-oriented industrial energy efficiency).'.
Subtitle B--Federal Leadership in Energy Conservation
SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.
(a) PURPOSE- Section 542 of the National Energy Conservation Policy Act
(42 U.S.C. 8252) is amended by inserting `, and generally to promote the
production, supply, and marketing of energy efficiency products and services
and the production, supply, and marketing of unconventional and renewable
energy resources' after `by the Federal Government'.
(b) ENERGY MANAGEMENT REQUIREMENTS- Section 543 of the National Energy
Conservation Policy Act (42 U.S.C. 8253) is amended as follows:
(1) In subsection (a)(1), by striking `during the fiscal year 1995' and
all that follows through the end and inserting `during--
`(1) fiscal year 1995 is at least 10 percent;
`(2) fiscal year 2000 is at least 20 percent;
`(3) fiscal year 2005 is at least 30 percent;
`(4) fiscal year 2010 is at least 35 percent;
`(5) fiscal year 2015 is at least 40 percent; and
`(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its Federal
buildings in use during fiscal year 1985. To achieve the reductions required
by this paragraph, an agency shall make maximum practicable use of energy
efficiency products and services and unconventional and renewable energy
resources, using guidelines issued by the Secretary under subsection (d) of
this section.'.
(2) In subsection (d), by inserting `Such guidelines shall include
appropriate model technical standards for energy efficiency and
unconventional and renewable energy resources products and services. Such
standards shall reflect, to the extent practicable, evaluation of both
currently marketed and potentially marketable products and services that
could be used by agencies to improve energy efficiency and increase
unconventional and renewable energy resources.' after `implementation of
this part.'.
(3) By adding at the end the following new subsection:
`(e) STUDIES- To assist in developing the guidelines issued by the
Secretary under subsection (d) and in furtherance of the purposes of this
section, the Secretary shall conduct studies to identify and encourage the
production and marketing of energy efficiency products and services and
unconventional and renewable energy resources. To conduct such studies, and to
provide grants to accelerate the use of unconventional and renewable energy,
there are authorized to be appropriated to the Secretary $20,000,000 for each
of the fiscal years 2003 through 2010.'.
(c) DEFINITION- Section 551 of the National Energy Conservation Policy Act
(42 U.S.C. 8259) is amended as follows:
(1) By striking `and' at the end of paragraph (8).
(2) By striking the period at the end of paragraph (9) and inserting `;
and'.
(3) By adding at the end the following new paragraph:
`(10) the term `unconventional and renewable energy resources' includes
renewable energy sources, hydrogen, fuel cells, cogeneration, combined heat
and power, heat recovery (including by use of a Stirling heat engine), and
distributed generation.'.
(d) EXCLUSIONS FROM REQUIREMENT- The National Energy Conservation Policy
Act (42 U.S.C. 7201 and following) is amended as follows:
(A) by striking `(1) Subject to paragraph (2)' and inserting `Subject
to subsection (c)'; and
(B) by striking `(2) An agency' and all that follows through `such
exclusion.'.
(2) By amending subsection (c) of such section 543 to read as
follows:
`(c) EXCLUSIONS- (1) A Federal building may be excluded from the
requirements of subsections (a) and (b) only if--
`(A) the President declares the building to require exclusion for
national security reasons; and
`(B) the agency responsible for the building has--
`(i) completed and submitted all federally required energy management
reports; and
`(ii) achieved compliance with the energy efficiency requirements of
this Act, the Energy Policy Act of 1992, Executive Orders, and other
Federal law;
`(iii) implemented all practical, life cycle cost-effective projects
in the excluded building.
`(2) The President shall only declare buildings described in paragraph
(1)(A) to be excluded, not ancillary or nearby facilities that are not in
themselves national security facilities.'.
(3) In section 548(b)(1)(A)--
(A) by striking `copy of the'; and
(B) by striking `sections 543(a)(2) and 543(c)(3)' and inserting
`section 543(c)'.
(e) ACQUISITION REQUIREMENT- Section 543(b) of such Act is amended--
(1) in paragraph (1), by striking `(1) Not' and inserting `(1) Except as
provided in paragraph (5), not'; and
(2) by adding at the end the following new paragraph:
`(5)(A)(i) Agencies shall select only Energy Star products when available
when acquiring energy-using products. For product groups where Energy Star
labels are not yet available, agencies shall select products that are in the
upper 25 percent of energy efficiency as designated by FEMP. In the case of
electric motors of 1 to 500 horsepower, agencies shall select only premium
efficiency motors that meet a standard designated by the Secretary, and shall
replace (not rewind) failed motors with motors meeting such standard. The
Secretary shall designate such standard within 90 days of the enactment of
paragraph, after considering recommendations by the National Electrical
Manufacturers Association. The Secretary of Energy shall develop guidelines
within 180 days after the enactment of this paragraph for exemptions to this
section when equivalent products do not exist, are impractical, or do not meet
the agency mission requirements.
`(ii) The Administrator of the General Services Administration and the
Secretary of Defense (acting through the Defense Logistics Agency), with
assistance from the Administrator of the Environmental Protection Agency and
the Secretary of Energy, shall create clear catalogue listings that designate
Energy Star products in both print and electronic formats. After any existing
federal inventories are exhausted, Administrator of the General Services
Administration and the Secretary of Defense (acting through the Defense
Logistics Agency) shall only replace inventories with energy-using products
that are Energy Star, products that are rated in the top 25 percent of energy
efficiency, or products that are exempted as designated by FEMP and defined in
clause (i).
`(iii) Agencies shall incorporate energy-efficient criteria consistent
with Energy Star and other FEMP designated energy efficiency levels into all
guide specifications and project specifications developed for new construction
and renovation, as well as into product specification language developed for
Basic Ordering Agreements, Blanket Purchasing Agreements, Government Wide
Acquisition Contracts, and all other purchasing procedures.
`(iv) The legislative branch shall be subject to this subparagraph to the
same extent and in the same manner as are the Federal agencies referred to in
section 521(1).
`(B) Not later than 6 months after the date of the enactment of this
paragraph, the Secretary of Energy shall establish guidelines defining the
circumstances under which an agency shall not be required to comply with
subparagraph (A). Such circumstances may include the absence of Energy Star
products, systems, or designs that serve the purpose of the agency, issues
relating to the compatibility of a product, system, or design with existing
buildings or equipment, and excessive cost compared to other available and
appropriate products, systems, or designs.
`(C) Subparagraph (A) shall apply to agency acquisitions occurring on or
after October 1, 2002.'.
(f) METERING- Section 543 of such Act (42 U.S.C. 8254) is amended by
adding at the end the following new subsection:
`(f) METERING- (1) By October 1, 2004, all Federal buildings including
buildings owned by the legislative branch and the Federal court system and
other energy-using structures shall be metered or submetered in accordance
with guidelines established by the Secretary under paragraph (2).
`(2) Not later than 6 months after the date of the enactment of this
subsection, the Secretary, in consultation with the General Services
Administration and representatives from the metering industry, energy services
industry, national laboratories, colleges of higher education, and federal
facilities energy managers, shall establish guidelines for agencies to carry
out paragraph (1). Such guidelines shall take into consideration each of the
following:
`(B) Resources, including personnel, required to maintain, interpret,
and report on data so that the meters are continually reviewed.
`(C) Energy management potential.
`(E) Utility contract aggregation.
`(F) Savings from operations and maintenance.
`(3) A building shall be exempt from the requirement of this section to
the extent that compliance is deemed impractical by the Secretary. A finding
of impracticability shall be based on the same factors as identified in
subsection (c) of this section.'.
(g) RETENTION OF ENERGY SAVINGS- Section 546 of such Act (42 U.S.C. 8256)
is amended by adding at the end the following new subsection:
`(e) RETENTION OF ENERGY SAVINGS- An agency may retain any funds
appropriated to that agency for energy expenditures, at buildings subject to
the requirements of section 543(a) and (b), that are not made because of
energy savings. Except as otherwise provided by law, such funds may be used
only for energy efficiency or unconventional and renewable energy resources
projects.'.
(h) REPORTS- Section 548 of such Act (42 U.S.C. 8258) is amended as
follows:
(A) by inserting `in accordance with guidelines established by and'
after `to the Secretary,';
(B) by striking `and' at the end of paragraph (1);
(C) by striking the period at the end of paragraph (2) and inserting a
semicolon; and
(D) by adding at the end the following new paragraph:
`(3) an energy emergency response plan developed by the agency.'.
(A) by striking `and' at the end of paragraph (3);
(B) by striking the period at the end of paragraph (4) and inserting
`; and'; and
(C) by adding at the end the following new paragraph:
`(5) all information transmitted to the Secretary under subsection
(a).'.
(3) By amending subsection (c) to read as follows:
`(c) AGENCY REPORTS TO CONGRESS- Each agency shall annually report to the
Congress, as part of the agency's annual budget request, on all of the
agency's activities implementing any Federal energy management
requirement.'.
(i) INSPECTOR GENERAL ENERGY AUDITS- Section 160(c) of the Energy Policy
Act of 1992 (42 U.S.C. 8262f(c)) is amended by striking `is encouraged to
conduct periodic' and inserting `shall conduct periodic'.
(j) FEDERAL ENERGY MANAGEMENT REVIEWS- Section 543 of the National Energy
Conservation Policy Act (42 U.S.C. 8253) is amended by adding at the end the
following:
`(g) PRIORITY RESPONSE REVIEWS- Each agency shall--
`(1) not later than 9 months after the date of the enactment of this
subsection, undertake a comprehensive review of all practicable measures
for--
`(A) increasing energy and water conservation, and
`(B) using renewable energy sources; and
`(2) not later than 180 days after completing the review, develop plans
to achieve not less than 50 percent of the potential efficiency and
renewable savings identified in the review.
The agency shall implement such measures as soon thereafter as is
practicable, consistent with compliance with the requirements of this
section.'.
SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO FEDERAL ENERGY
SAVINGS PERFORMANCE CONTRACTS.
(a) COST SAVINGS FROM OPERATION AND MAINTENANCE EFFICIENCIES IN
REPLACEMENT FACILITIES- Section 801(a) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(a)) is amended by adding at the end the following
new paragraph:
`(3)(A) In the case of an energy savings contract or energy savings
performance contract providing for energy savings through the construction and
operation of one or more buildings or facilities to replace one or more
existing buildings or facilities, benefits ancillary to the purpose of such
contract under paragraph (1) may include savings resulting from reduced costs
of operation and maintenance at such replacement buildings or facilities when
compared with costs of operation and maintenance at the buildings or
facilities being replaced, established through a methodology set forth in the
contract.
`(B) Notwithstanding paragraph (2)(B), aggregate annual payments by an
agency under an energy savings contract or energy savings performance contract
referred to in subparagraph (A) may take into account (through the procedures
developed pursuant to this section) savings resulting from reduced costs of
operation and maintenance as described in that subparagraph.'.
(b) EXPANSION OF DEFINITION OF ENERGY SAVINGS TO INCLUDE WATER AND
REPLACEMENT FACILITIES-
(1) 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)(A) 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--
`(i) the lease or purchase of operating equipment, improvements,
altered operation and maintenance, or technical services;
`(ii) the increased efficient use of existing energy sources by solar
and ground source geothermal resources, cogeneration or heat recovery
(including by the use of a Stirling heat engine), excluding any
cogeneration process for other than a federally owned building or
buildings or other federally owned facilities; or
`(iii) the increased efficient use of existing water sources.
`(B) The term `energy savings' also means, in the case of a replacement
building or facility described in section 801(a)(3), a reduction in the cost
of energy, from a base cost established through a methodology set forth in
the contract, that would otherwise be utilized in one or more existing
federally owned buildings or other federally owned facilities by reason of
the construction and operation of the replacement building or
facility.'.
(2) 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--
`(A) 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; or
`(B) energy savings through the construction and operation of one or
more buildings or facilities to replace one or more existing buildings or
facilities.'.
(3) 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, improvements in operation or maintenance efficiencies,
retrofit activities, or other related activities, not at a Federal
hydroelectric facility.'.
(4) CONFORMING AMENDMENT- Section 801(a)(2)(C) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)(C)) is amended by inserting
`or water' after `financing energy'.
(c) EXTENSION OF AUTHORITY- Section 801(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
(d) CONTRACTING AND AUDITING- Section 801(a)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the end
the following new subparagraph:
`(E) A Federal agency shall engage in contracting and auditing to
implement energy savings performance contracts as necessary and appropriate to
ensure compliance with the requirements of this Act, particularly the energy
efficiency requirements of section 543.'.
SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHORITY TO ENTER UTILITY
INCENTIVE PROGRAMS FOR ENERGY SAVINGS.
Section 546(c) of the National Energy Conservation Policy Act (42 U.S.C.
8256(c)) is amended as follows:
(1) In paragraph (3) by adding at the end the following: `Such a utility
incentive program may include a contract or contract term designed to
provide for cost-effective electricity demand management, energy efficiency,
or water conservation.'.
(2) By adding at the end of the following new paragraphs:
`(6) A utility incentive program may include a contract or contract term
for a reduction in the energy, from a base cost established through a
methodology set forth in such a contract, that would otherwise be utilized in
one or more federally owned buildings or other federally owned facilities by
reason of the construction or operation of one or more replacement buildings
or facilities, as well as benefits ancillary to the purpose of such contract
or contract term, including savings resulting from reduced costs of operation
and maintenance at new or additional buildings or facilities when compared
with the costs of operation and maintenance at existing buildings or
facilities.
`(7) Federal agencies are encouraged to participate in State or regional
demand side reduction programs, including those operated by wholesale market
institutions such as independent system operators, regional transmission
organizations and other entities. The availability of such programs, and the
savings resulting from such participation, should be included in the
evaluation of energy options for Federal facilities.'.
SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT PUMP EFFICIENCY.
(a) REQUIREMENT- Federal agencies shall be required to acquire central air
conditioners and heat pumps that meet or exceed the standards established
under subsection (b) or (c) in the case of all central air conditioners and
heat pumps acquired after the date of the enactment of this Act.
(b) STANDARDS- The standards referred to in subsection (a) are the
following:
(1) For air-cooled air conditioners with cooling capacities of less than
65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 12.0.
(2) For air-source heat pumps with cooling capacities less than 65,000
Btu/hour, a Seasonal Energy Efficiency Ratio of 12 SEER, and a Heating
Seasonal Performance Factor of 7.4.
(c) MODIFIED STANDARDS- The Secretary of Energy may establish, after
appropriate notice and comment, revised standards providing for reduced energy
consumption or increased energy efficiency of central air conditioners and
heat pumps acquired by the Federal Government, but may not establish standards
less rigorous than those established by subsection (b).
(d) DEFINITIONS- For purposes of this section, the terms `Energy
Efficiency Ratio', `Seasonal Energy Efficiency Ratio', `Heating Seasonal
Performance Factor', and `Coefficient of Performance' have the meanings used
for those terms in Appendix M to Subpart B of Part 430 of title 10 of the Code
of Federal Regulations, as in effect on May 24, 2001.
(e) EXEMPTIONS- An agency shall be exempt from the requirements of this
section with respect to air conditioner or heat pump purchases for particular
uses where the agency head determines that purchase of a air conditioner or
heat pump for such use would be impractical. A finding of impracticability
shall be based on whether--
(1) the energy savings pay-back period for such purchase would be less
than 10 years;
(2) space constraints or other technical factors would make compliance
with this section cost-prohibitive; or
(3) in the case of the Departments of Defense and Energy, compliance
with this section would be inconsistent with the proper discharge of
national security functions.
SEC. 125. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) ESTABLISHMENT- The Secretary of Energy shall establish an Advanced
Building Efficiency Testbed program for the development, testing, and
demonstration of advanced engineering systems, components, and materials to
enable innovations in building technologies. The program shall evaluate
government and industry building efficiency concepts, and demonstrate the
ability of next generation buildings to support individual and organizational
productivity and health as well as flexibility and technological change to
improve environmental sustainability.
(b) PARTICIPANTS- The program established under subsection (a) shall be
led by a university having demonstrated experience with the application of
intelligent workplaces and advanced building systems in improving the quality
of built environments. Such university shall also have the ability to combine
the expertise from more than 12 academic fields, including electrical and
computer engineering, computer science, architecture, urban design, and
environmental and mechanical engineering. Such university shall partner with
other universities and entities who have established programs and the
capability of advancing innovative building efficiency technologies.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy to carry out this section $18,000,000
for fiscal year 2002, to remain available until expended, of which $6,000,000
shall be provided to the lead university described in subsection (b), and the
remainder shall be provided equally to each of the other participants referred
to in subsection (b).
SEC. 126. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Policy Act (42 U.S.C.
8253) is amended by adding at the end the following new subsection:
`(h) USE OF INTERVAL DATA IN FEDERAL BUILDINGS- Not later than January 1,
2003, each agency shall utilize, to the maximum extent practicable, for the
purposes of efficient use of energy and reduction in the cost of electricity
consumed in its Federal buildings, interval consumption data that measure on a
real time or daily basis consumption of electricity in its Federal buildings.
To meet the requirements of this subsection each agency shall prepare and
submit at the earliest opportunity pursuant to section 548(a) to the
Secretary, a plan describing how the agency intends to meet such requirements,
including how it will designate personnel primarily responsible for achieving
such requirements, and otherwise implement this subsection.'.
SEC. 127. 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. 128. CAPITOL COMPLEX.
(a) ENERGY INFRASTRUCTURE- The Architect of the Capitol, building on the
Master Plan Study completed in July 2000, shall commission a study to evaluate
the energy infrastructure of the Capital Complex to determine how the
infrastructure could be augmented to become more energy efficient, using
unconventional and renewable energy resources, in a way that would enable the
Complex to have reliable utility service in the event of power fluctuations,
shortages, or outages.
(b) AUTHORIZATION- There is authorized to be appropriated to the Architect
of the Capitol to carry out this section, not more than $2,000,000 for fiscal
years after the enactment of this Act.
Subtitle C--State Programs
SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.
(a) STATE ENERGY CONSERVATION PLANS- Section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322) is amended by inserting at the end the
following new subsection:
`(g) The Secretary shall, at least once every 3 years, invite the Governor
of each State to review and, if necessary, revise the energy conservation plan
of such State submitted under subsection (b) or (e). Such reviews should
consider the energy conservation plans of other States within the region, and
identify opportunities and actions carried out in pursuit of common energy
conservation goals.'.
(b) STATE ENERGY EFFICIENCY GOALS- Section 364 of the Energy Policy and
Conservation Act (42 U.S.C. 6324) is amended by inserting `Each State energy
conservation plan with respect to which assistance is made available under
this part on or after the date of the enactment of Energy Advancement and
Conservation Act of 2001, 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 the calendar year 2010 as compared to the calendar year 1990, and
may contain interim goals.' after `contain interim goals.'.
(c) AUTHORIZATION OF APPROPRIATIONS- Section 365(f) of the Energy Policy
and Conservation Act (42 U.S.C. 6325(f)) is amended by striking `for fiscal
years 1999 through 2003 such sums as may be necessary' and inserting
`$75,000,000 for fiscal year 2002, $100,000,000 for fiscal years 2003 and
2004, $125,000,000 for fiscal year 2005'.
SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION PROGRAM FOR SCHOOLS AND
HOSPITALS.
Section 397 of the Energy Policy and Conservation Act (42 U.S.C. 6371f) is
amended by striking `2003' and inserting `2010'.
SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.
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 `$273,000,000 for fiscal year 2002, $325,000,000 for
fiscal year 2003, $400,000,000 for fiscal year 2004, and $500,000,000 for
fiscal year 2005'.
SEC. 134. LIHEAP.
(a) AUTHORIZATION OF APPROPRIATIONS- Section 2602(b) of the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking
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 2001 through 2005.'.
(b) GAO STUDY- The Comptroller General of the United States shall conduct
a study to determine--
(1) the extent to which Low-Income Home Energy Assistance (LIHEAP) and
other government energy subsidies paid to consumers discourage or encourage
energy conservation and energy efficiency investments when compared to
structures of the same physical description and occupancy in compatible
geographic locations;
(2) the extent to which education could increase the conservation of
low-income households who opt to receive supplemental income instead of
Low-Income Home Energy Assistance funds;
(3) the benefit in energy efficiency and energy savings that can be
achieved through the annual maintenance of heating and cooling appliances in
the homes of those receiving Low-Income Home Energy Assistance funds;
and
(4) the loss of energy conservation that results from structural
inadequacies in a structure that is unhealthy, not energy efficient, and
environmentally unsound and that receives Low-Income Home Energy Assistance
funds for weatherization.
SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.
(a) PROGRAM ESTABLISHMENT AND ADMINISTRATION-
(1) ESTABLISHMENT- There is established in the Department of Energy the
High Performance Public Buildings Program (in this section referred to as
the `Program').
(2) IN GENERAL- The Secretary of Energy may, through the Program, make
grants--
(A) to assist units of local government in the production, through
construction or renovation of buildings and facilities they own and
operate, of high performance public buildings and facilities that are
healthful, productive, energy efficient, and environmentally
sound;
(B) to State energy offices to administer the program of assistance to
units of local government pursuant to this section; and
(C) to State energy offices to promote participation by units of local
government in the Program.
(3) GRANTS TO ASSIST UNITS OF LOCAL GOVERNMENT- Grants under paragraph
(2)(A) for new public buildings shall be used to achieve energy efficiency
performance that reduces energy use at least 30 percent below that of a
public building constructed in compliance with standards prescribed in
Chapter 8 of the 2000 International Energy Conservation Code, or a similar
State code intended to achieve substantially equivalent results. Grants
under paragraph (2)(A) for existing public buildings shall be used to
achieve energy efficiency performance that reduces energy use below the
public building baseline consumption, assuming a 3-year, weather-normalized
average for calculating such baseline. Grants under paragraph (2)(A) shall
be made to units of local government that have--
(A) demonstrated a need for such grants in order to respond
appropriately to increasing population or to make major investments in
renovation of public buildings; and
(B) made a commitment to use the grant funds to develop high
performance public buildings in accordance with a plan developed and
approved pursuant to paragraph (5)(A).
(A) GRANTS FOR ADMINISTRATION- Grants under paragraph (2)(B) shall be
used to evaluate compliance by units of local government with the
requirements of this section, and in addition may be used for--
(i) distributing information and materials to clearly define and
promote the development of high performance public buildings for both
new and existing facilities;
(ii) organizing and conducting programs for local government
personnel, architects, engineers, and others to advance the concepts of
high performance public buildings;
(iii) obtaining technical services and assistance in planning and
designing high performance public buildings; and
(iv) collecting and monitoring data and information pertaining to
the high performance public building projects.
(B) GRANTS TO PROMOTE PARTICIPATION- Grants under paragraph (2)(C) may
be used for promotional and marketing activities, including facilitating
private and public financing, promoting the use of energy service
companies, working with public building users, and communities, and
coordinating public benefit programs.
(A) PLANS- A grant under paragraph (2)(A) shall be provided only to a
unit of local government that, in consultation with its State office of
energy, has developed a plan that the State energy office determines to be
feasible and appropriate in order to achieve the purposes for which such
grants are made.
(B) SUPPLEMENTING GRANT FUNDS- State energy offices shall encourage
qualifying units of local government to supplement their grant funds with
funds from other sources in the implementation of their plans.
(1) IN GENERAL- Except as provided in paragraph (3), funds appropriated
to carry out this section shall be provided to State energy offices.
(2) PURPOSES- Except as provided in paragraph (3), funds appropriated to
carry out this section shall be allocated as follows:
(A) Seventy percent shall be used to make grants under subsection
(a)(2)(A).
(B) Fifteen percent shall be used to make grants under subsection
(a)(2)(B).
(C) Fifteen percent shall be used to make grants under subsection
(a)(2)(C).
(3) OTHER FUNDS- The Secretary of Energy may retain not to exceed
$300,000 per year from amounts appropriated under subsection (c) 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 public buildings.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy to carry out this section such sums as
may be necessary for each of the fiscal years 2002 through 2010.
(d) REPORT TO CONGRESS- The Secretary of Energy shall conduct a biennial
review of State actions implementing this section, and the Secretary shall
report to Congress on the results of such reviews. In conducting such reviews,
the Secretary shall assess the effectiveness of the calculation procedures
used by the States in establishing eligibility of units of local government
for funding under this section, and may assess other aspects of the State
program to determine whether they have been effectively implemented.
(e) DEFINITIONS- For purposes of this section:
(1) HIGH PERFORMANCE PUBLIC BUILDING- The term `high performance public
building' means a public building which, in its design, construction,
operation, and maintenance, maximizes use of unconventional and renewable
energy resources and energy efficiency practices, is cost-effective on a
life cycle basis, uses affordable, environmentally preferable, durable
materials, enhances indoor environmental quality, protects and conserves
water, and optimizes site potential.
(2) RENEWABLE ENERGY- The term `renewable energy' means energy produced
by solar, wind, geothermal, hydroelectric, or biomass power.
(3) UNCONVENTIONAL AND RENEWABLE ENERGY RESOURCES- The term
`unconventional and renewable energy resources' means renewable energy,
hydrogen, fuel cells, cogeneration, combined heat and power, heat recovery
(including by use of a Stirling heat engine), and distributed
generation.
Subtitle D--Energy Efficiency for Consumer Products
SEC. 141. ENERGY STAR PROGRAM.
(a) AMENDMENT- The Energy Policy and Conservation Act (42 U.S.C. 6201 and
following) is amended by inserting the following after section 324:
`SEC. 324A. ENERGY STAR PROGRAM.
`(a) IN GENERAL- 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;
and
`(3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is authorized to be
appropriated for fiscal years 2002 through 2006 such sums as may be necessary,
to remain available until expended.
`(b) STUDY OF CERTAIN PRODUCTS AND BUILDINGS- Within 180 days after the
date of the enactment of this section, the Secretary and the Administrator,
consistent with the terms of agreements between the two agencies (including
existing agreements with respect to which agency shall handle a particular
product or building), shall determine whether the Energy Star label should be
extended to additional products and buildings, including the following:
`(3) Light commercial heating and cooling products.
`(4) Reach-in refrigerators and freezers.
`(7) Residential water heaters.
`(8) Refrigerated beverage merchandisers.
`(9) Commercial ice makers.
`(12) Health care facilities.
`(14) Hotels and other commercial lodging facilities.
`(15) Restaurants and other food service facilities.
`(16) Solar water heaters.
`(17) Building-integrated photovoltaic systems.
`(18) Reflective pigment coatings.
`(21) Devices to extend the life of motor vehicle oil.
`(c) COOL ROOFING- In determining whether the Energy Star label should be
extended to roofing products, the Secretary and the Administrator shall work
with the roofing products industry to determine the appropriate solar
reflective index of roofing products.'.
(b) TABLE OF CONTENTS AMENDMENT- The table of contents of the Energy
Policy and Conservation Act is amended by inserting after the item relating to
section 324 the following new item:
`Sec. 324A. Energy Star program.'.
SEC. 141A. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY PROGRAM.
(a) AMENDMENT- The Energy Policy and Conservation Act (42 U.S.C. 6201 and
following) is amended by inserting the following after section 324A:
`SEC. 324B. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY PROGRAM.
`(a) PROGRAM- There is established at the Environmental Protection Agency
and the Department of Energy a government-industry partnership program to
identify and promote the purchase of renewable and alternative energy
products, to recognize companies that purchase renewable and alternative
energy products for the environmental and energy security benefits of such
purchases, and to educate consumers about the environmental and energy
security benefits of renewable and alternative energy. Responsibilities under
the program shall be divided between the Environmental Protection Agency and
the Department of Energy consistent with the terms of agreements between the
two agencies. The Administrator of the Environmental Protection Agency and the
Secretary of Energy--
`(1) establish an Energy Sun label for renewable and alternative energy
products and technologies that the Administrator or the Secretary
(consistent with the terms of agreements between the two agencies regarding
responsibility for specific product categories) determine to have
substantial environmental and energy security benefits and commercial
marketability.
`(2) establish an Energy Sun Company program to recognize private
companies that draw a substantial portion of their energy from renewable and
alternative sources that provide substantial environmental and energy
security benefits, as determined by the Administrator or the
Secretary.
`(3) promote Energy Sun compliant products and technologies as the
preferred products and technologies in the marketplace for reducing
pollution and achieving energy security; and
`(4) work to enhance public awareness and preserve the integrity of the
Energy Sun label.
For the purposes of carrying out this section, there is authorized to be
appropriated $10,000,000 for each of fiscal years 2002 through 2006.
`(b) STUDY OF CERTAIN PRODUCTS, TECHNOLOGIES, AND BUILDINGS- Within 18
months after the enactment of this section, the Administrator and the
Secretary, consistent with the terms of agreements between the two agencies,
shall conduct a study to determine whether the Energy Sun label should be
authorized for products, technologies, and buildings in the following
categories:
`(1) Passive solar, solar thermal, concentrating solar energy, solar
water heating, and related solar products and building technologies.
`(2) Solar photovoltaics and other solar electric power generation
technologies.
`(6) Distributed energy (including, but not limited to, microturbines,
combined heat and power, fuel cells, and stirling heat engines).
`(7) Green power or other renewables and alternative based electric
power products (including green tag credit programs) sold to retail
consumers of electricity.
`(11) Health care facilities.
`(12) Hotels and other commercial lodging facilities.
`(13) Restaurants and other food service facilities.
`(14) Rest area facilities along interstate highways.
`(15) Sports stadia, arenas, and concert facilities.
`(16) Any other product, technology or building category, the
accelerated recognition of which the Administrator or the Secretary
determines to be necessary or appropriate for the achievement of the
purposes of this section.
Nothing in this subsection shall be construed to limit the discretion of
the Administrator or the Secretary under subsection (a)(1) to include in the
Energy Sun program additional products, technologies, and buildings not listed
in this subsection. Participation by private-sector entities in programs or
studies authorized by this section shall be (A) voluntary, and (B) by
permission of the Administrator or Secretary, on terms and conditions the
Administrator or the Secretary (consistent with agreements between the
agencies) deems necessary or appropriate to carry out the purposes and
requirements of this section.
`(c) DEFINITION- For the purposes of this section, the term `renewable and
alternative energy' shall have the same meaning as the term `unconventional
and renewable energy resources' in Section 551 of the National Energy
Conservation Policy Act (42 U.S.C. 8259).'.
(b) TABLE OF CONTENTS AMENDMENT- The table of contents of the Energy
Policy and Conservation Act is amended by inserting after the item relating to
section 324A the following new item:
`Sec. 324B. Energy Sun renewable and alternative energy program.'.
SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.
(a) STUDY- Section 324(e) of the Energy Policy and Conservation Act (42
U.S.C. 6294(e)) is amended as follows:
(1) By inserting `(1)' before `The Secretary, in consultation'.
(2) By redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively.
(3) By adding the following new paragraph at the end:
`(2) The Secretary shall make recommendations to the Commission within 180
days of the date of the enactment of this paragraph regarding labeling of
consumer products that are not covered products in accordance with this
section, where such labeling is likely to assist consumers in making
purchasing decisions and is technologically and economically feasible.'.
(b) NONCOVERED PRODUCTS- Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at
the end:
`(F) Not later than 1 year after the date of the enactment of this
subparagraph, the Commission shall initiate a rulemaking to prescribe labeling
rules under this section applicable to consumer products that are not covered
products if it determines that labeling of such products is likely to assist
consumers in making purchasing decisions and is technologically and
economically feasible.
`(G) Not later than 3 months after the date of the 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 label that would improve the effectiveness of the
label. Such rulemaking shall be completed within 15 months of the date of the
enactment of this subparagraph.'.
SEC. 143. APPLIANCE STANDARDS.
(a) STANDARDS FOR HOUSEHOLD APPLIANCES IN STANDBY MODE- (1) 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 BY HOUSEHOLD APPLIANCES- (1)
In this subsection:
`(A) The term `household appliance' means any device that uses household
electric current, operates in a standby mode, and is identified by the
Secretary as a major consumer of electricity in standby mode, except digital
televisions, digital set top boxes, digital video recorders, any product
recognized under the Energy Star program, any product that was on the date
of the enactment of this Act subject to an energy conservation standard
under this section, and any product regarding which the Secretary finds that
the expected additional cost to the consumer of purchasing such product as a
result of complying with a standard established under this section is not
economically justified within the meaning of subsection (o).
`(B) The term `standby mode' means a mode in which a household appliance
consumes the least amount of electric energy that the household appliance is
capable of consuming without being completely switched off (provided that,
the amount of electric energy consumed in such mode is substantially less
than the amount the household appliance would consume in its normal
operational mode).
`(C) The term `major consumer of electricity in standby mode' means a
product for which a standard prescribed under this section would result in
substantial energy savings as compared to energy savings achieved or
expected to be achieved by standards established by the Secretary under
subsections (o) and (p) of this section for products that were, at the time
of the enactment of this subsection, covered products under this
section.
`(2)(A) Except as provided in subparagraph (B), a household appliance that
is manufactured in, or imported for sale in, the United States on or after the
date that is 2 years after the date of the enactment of this subsection shall
not consume in standby mode more than 1 watt.
`(B) In the case of analog televisions, the Secretary shall prescribe, on
or after the date that is 2 years after the date of the enactment of this
subsection, in accordance with subsections (o) and (p) of section 325, an
energy conservation standard that is technologically feasible and economically
justified under section 325(o)(2)(A) (in lieu of the 1 watt standard under
subparagraph (A)).
`(3)(A) A manufacturer or importer of a household appliance may submit to
the Secretary an application for an exemption of the household appliance from
the standard under paragraph (2).
`(B) The Secretary shall grant an exemption for a household appliance for
which an application is made under subparagraph (A) if the applicant provides
evidence showing that, and the Secretary determines that--
`(i) it is not technically feasible to modify the household appliance to
enable the household appliance to meet the standard;
`(ii) the standard is incompatible with an energy efficiency standard
applicable to the household appliance under another subsection; or
`(iii) the cost of electricity that a typical consumer would save in
operating the household appliance meeting the standard would not equal the
increase in the price of the household appliance that would be attributable
to the modifications that would be necessary to enable the household
appliance to meet the standard by the earlier of--
`(I) the date that is 7 years after the date of purchase of the
household appliance; or
`(II) the end of the useful life of the household appliance.
`(C) If the Secretary determines that it is not technically feasible to
modify a household appliance to meet the standard under paragraph (2), the
Secretary shall establish a different standard for the household appliance in
accordance with the criteria under subsection (l).
`(4)(A) Not later than 1 year after the date of the enactment of this
subsection, the Secretary shall establish a test procedure for determining the
amount of consumption of power by a household appliance operating in standby
mode.
`(B) In establishing the test procedure, the Secretary shall consider--
`(i) international test procedures under development;
`(ii) test procedures used in connection with the Energy Star program;
and
`(iii) test procedures used for measuring power consumption in standby
mode in other countries.
`(5) FURTHER REDUCTION OF STANDBY POWER CONSUMPTION- The Secretary shall
provide technical assistance to manufacturers in achieving further reductions
in standby mode electric energy consumption by household appliances.
`(v) STANDBY MODE ELECTRIC ENERGY CONSUMPTION BY DIGITAL TELEVISIONS,
DIGITAL SET TOP BOXES, AND DIGITAL VIDEO RECORDERS- The Secretary shall
initiate on January 1, 2007 a rulemaking to prescribe, in accordance with
subsections (o) and (p), an energy conservation standard of standby mode
electric energy consumption by digital television sets, digital set top boxes,
and digital video recorders. The Secretary shall issue a final rule
prescribing such standards not later than 18 months thereafter. In determining
whether a standard under this section is technologically feasible and
economically justified under section 325(o)(2)(A), the Secretary shall
consider the potential effects on market penetration by digital products
covered under this section, and shall consider any recommendations by the FCC
regarding such effects.'.
(2) Section 325(o)(3) of the Energy Policy and Conservation Act (42
U.S.C. 6295(n)(1)) is amended by inserting at the end of the paragraph the
following: `Notwithstanding any provision of this part, the Secretary shall
not amend a standard established under subsection (u) or (v) of this
section.'.
(b) STANDARDS FOR NONCOVERED PRODUCTS- Section 325(m) of the Energy Policy
and Conservation Act (42 U.S.C. 6295(m)) is amended as follows:
(1) Inserting `(1)' before `After'.
(2) Inserting the following at the end:
`(2) Not later than 1 year after the date of the enactment of the Energy
Advancement and Conservation Act of 2001, the Secretary shall conduct a
rulemaking to determine whether consumer products not classified as a covered
product under section 322(a)(1) through (18) meet the criteria of section
322(b)(1) and is a major consumer of electricity. If the Secretary finds that
a consumer product not classified as a covered product meets the criteria of
section 322(b)(1), he shall prescribe, in accordance with subsections (o) and
(p), an energy conservation standard for such consumer product, if such
standard is reasonably probable to be technologically feasible and
economically justified within the meaning of subsection (o)(2)(A). As used in
this paragraph, the term `major consumer of electricity' means a product for
which a standard prescribed under this section would result in substantial
aggregate energy savings as compared to energy savings achieved or expected to
be achieved by standards established by the Secretary under paragraphs (o) and
(p) of this section for products that were, at the time of the enactment of
this paragraph, covered products under this section.'.
(c) 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 the following new
subsection after subsection (b):
`(c) HVAC MAINTENANCE- 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 the enactment of
this subsection, develop and implement a public education campaign to educate
homeowners and small business owners concerning the energy savings resulting
from regularly scheduled maintenance of air conditioning, heating, and
ventilating systems. In developing and implementing this campaign, the
Secretary shall consider support by the Department of public education
programs sponsored by trade and professional and energy efficiency
organizations. The public service information shall provide sufficient
information to allow consumers to make informed choices from among
professional, licensed (where State or local licensing is required)
contractors. There are authorized to be appropriated to carry out this
subsection $5,000,000 for fiscal years 2002 and 2003 in addition to amounts
otherwise appropriated in this part.'.
(d) EFFICIENCY STANDARDS FOR FURNACE FANS, CEILING FANS, AND COLD DRINK
VENDING MACHINES-
(1) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act
(42 U.S.C. 6291) is amended by adding the following at the end
thereof:
`(32) The term `residential furnace fan' means an electric fan installed
as part of a furnace for purposes of circulating air through the system air
filters, the heat exchangers or heating elements of the furnace, and the
duct work.
`(33) The terms `residential central air conditioner fan' and `heat pump
circulation fan' mean an electric fan installed as part of a central air
conditioner or heat pump for purposes of circulating air through the system
air filters, the heat exchangers of the air conditioner or heat pump, and
the duct work.
`(34) The term `suspended ceiling fan' means a fan intended to be
mounted to a ceiling outlet box, ceiling building structure, or to a
vertical rod suspended from the ceiling, and which as blades which rotate
below the ceiling and consists of an electric motor, fan blades (which
rotate in a direction parallel to the floor), an optional lighting kit, and
one or more electrical controls (integral or remote) governing fan speed and
lighting operation.
`(35) The term `refrigerated bottled or canned beverage vending machine'
means a machine that cools bottled or canned beverages and dispenses them
upon payment.'.
(2) TESTING REQUIREMENTS- Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended by adding the following at the
end thereof:
`(f) ADDITIONAL CONSUMER PRODUCTS- The Secretary shall within 18 months
after the date of the enactment of this subsection prescribe testing
requirements for residential furnace fans, residential central air conditioner
fans, heat pump circulation fans, suspended ceiling fans, and refrigerated
bottled or canned beverage vending machines. Such testing requirements shall
be based on existing test procedures used in industry to the extent practical
and reasonable. In the case of residential furnace fans, residential central
air conditioner fans, heat pump circulation fans, and 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.'.
(3) STANDARDS FOR ADDITIONAL CONSUMER PRODUCTS- Section 325 of the
Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by adding the
following at the end thereof:
`(w) RESIDENTIAL FURNACE FANS, CENTRAL AIR AND HEAT PUMP CIRCULATION FANS,
SUSPENDED CEILING FANS, AND VENDING MACHINES- (1) The Secretary shall, within
18 months after the date of the enactment of this subsection, assess the
current and projected future market for residential furnace fans, residential
central air conditioner and heat pump circulation fans, suspended ceiling
fans, and refrigerated bottled or canned beverage vending machines. This
assessment shall include an examination of the types of products sold, the
number of products in use, annual sales of these products, energy used by
these products sold, the number of products in use, annual sales of these
products, energy used by these products, estimates of the potential energy
savings from specific technical improvements to these products, and an
examination of the cost-effectiveness of these improvements. Prior to the end
of this time period, the Secretary shall hold an initial scoping workshop to
discuss and receive input to plans for developing minimum efficiency standards
for these products.
`(2) 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 residential furnace
fans, residential central air conditioner and heat pump circulation fans,
suspended ceiling fans, and refrigerated bottled or canned beverage vending
machines. In establishing these standards, the Secretary shall use the
criteria and procedures contained in subsections (l) and (m). Any standard
prescribed under this section shall apply to products manufactured 36 months
after the date such rule is published.'.
(4) LABELING- Section 324(a) of the Energy Policy and Conservation Act
(42 U.S.C. 6294(a)) is amended by adding the following at the end
thereof:
`(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 section 325(w), prescribe, by rule, labeling requirements for
such products. These requirements shall take effect on the same date as the
standards prescribed pursuant to section 325(w).'.
(5) COVERED PRODUCTS- Section 322(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)) is amended by redesignating paragraph
(19) as paragraph (20) and by inserting after paragraph (18) the
following:
`(19) Beginning on the effective date for standards established pursuant
to subsection (v) of section 325, each product referred to in such
subsection (v).'.
Subtitle E--Energy Efficient Vehicles
SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.
(a) IN GENERAL- Notwithstanding section 102(a)(1) of title 23, United
States Code, a State may, for the purpose of promoting energy conservation,
permit a vehicle with fewer than 2 occupants to operate in high occupancy
vehicle lanes if such vehicle is a hybrid vehicle or is fueled by an
alternative fuel.
(b) HYBRID VEHICLE DEFINED- In this section, the term `hybrid vehicle'
means a motor vehicle--
(1) which draws propulsion energy from onboard sources of stored energy
which are both--
(A) an internal combustion or heat engine using combustible fuel;
and
(B) a rechargeable energy storage system;
(2) which, in the case of a passenger automobile or light truck--
(A) for 2002 and later model vehicles, has received a certificate of
conformity under section 206 of the Clean Air Act (42 U.S.C. 7525) and
meets or exceeds the equivalent qualifying California low emission vehicle
standard under section 243(e)(2) of the Clean Air Act (42 U.S.C.
7583(e)(2)) for that make and model year; and
(B) for 2004 and later model vehicles, has received a certificate that
such vehicle meets the 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 (42 U.S.C. 7521(i)) for that
make and model year vehicle; and
(3) which is made by a manufacturer.
(c) ALTERNATIVE FUEL DEFINED- In this section, the term `alternative fuel'
has the meaning such term has under section 301(2) of the Energy Policy Act of
1992 (42 U.S.C. 13211(2)).
SEC. 152. RAILROAD EFFICIENCY.
(a) LOCOMOTIVE TECHNOLOGY DEMONSTRATION- The Secretary of Energy shall
establish a public-private research partnership with railroad carriers,
locomotive manufacturers, and a world-class research and test center dedicated
to the advancement of railroad technology, efficiency, and safety that is
owned by the Federal Railroad Administration and operated in the private
sector, for the development and demonstration of locomotive technologies that
increase fuel economy and reduce emissions.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy $25,000,000 for fiscal year 2002,
$30,000,000 for fiscal year 2003, and $35,000,000 for fiscal year 2004 for
carrying out this section.
SEC. 153. BIODIESEL FUEL USE CREDITS.
Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 13220(c)) is
amended--
(1) by striking `NOT' in the subsection heading; and
SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.
Within 90 days after the enactment of this section, the Administrator of
the Environmental Protection Agency is directed to commence a review of the
Agency's policies regarding the use of mobile to stationary source trading of
emission credits under the Clean Air Act to determine whether such trading can
provide both nonattainment and attainment areas with additional flexibility in
achieving and maintaining healthy air quality and increasing use of
alternative fuel and advanced technology vehicles, thereby reducing United
States dependence on foreign oil.
Subtitle F--Other Provisions
SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING ENERGY
TECHNOLOGY.
(a) IN GENERAL- Each Federal agency shall carry out a review of its
regulations and standards to determine those that act as a barrier to market
entry for emerging energy-efficient technologies, including, but not limited
to, fuel cells, combined heat and power, and distributed generation (including
small-scale renewable energy).
(b) REPORT TO CONGRESS- No later than 18 months after the date of the
enactment of this section, each agency shall provide a report to Congress and
the President detailing all regulatory barriers to emerging energy-efficient
technologies, along with actions the agency intends to take, or has taken, to
remove such barriers.
(c) PERIODIC REVIEW- Each agency shall subsequently review its regulations
and standards in the manner specified in this section no less frequently than
every 5 years, and report their findings to Congress and the President. Such
reviews shall include a detailed analysis of all agency actions taken to
remove existing barriers to emerging energy technologies.
SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.
(1) ADVANCED IDLE ELIMINATION SYSTEM- The term `advanced idle
elimination system' means a device or system of devices that is installed at
a truck stop or other location (for example, a loading, unloading, or
transfer facility) where vehicles (such as trucks, trains, buses, boats,
automobiles, and recreational vehicles) are parked and that is designed to
provide to the vehicle the services (such as heat, air conditioning, and
electricity) that would otherwise require the operation of the auxiliary or
drive train engine or both while the vehicle is stationary and parked.
(2) EXTENDED IDLING- The term `extended idling' means the idling of a
motor vehicle for a period greater than 60 minutes.
(b) RECOGNITION OF BENEFITS OF ADVANCED IDLE ELIMINATION SYSTEMS- Within
90 days after the date of the enactment of this subsection, the Administrator
of the Environmental Protection Agency is directed to commence a review of the
Agency's mobile source air emissions models used under the Clean Air Act to
determine whether such models accurately reflect the emissions resulting from
extended idling of heavy-duty trucks and other vehicles and engines, and shall
update those models as the Administrator deems appropriate. Additionally,
within 90-days after the date of the enactment of this subsection, the
Administrator shall commence a review as to the appropriate emissions
reductions credit that should be allotted under the Clean Air Act for the use
of advanced idle elimination systems, and whether such credits should be
subject to an emissions trading system, and shall revise Agency regulations
and guidance as the Administrator deems appropriate.
SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BYPASS FILTRATION
TECHNOLOGY.
(a) STUDY- The Secretary of Energy and the Administrator of the
Environmental Protection Agency shall jointly conduct a study of oil bypass
filtration technology in motor vehicle engines. The study shall analyze and
quantify the potential benefits of such technology in terms of reduced demand
for oil and the potential environmental benefits of the technology in terms of
reduced waste and air pollution. The Secretary and the Administrator shall
also examine the feasibility of using such technology in the Federal motor
vehicle fleet.
(b) REPORT- Not later than 6 months after the enactment of this Act, the
Secretary of Energy and the Administrator of the Environmental Protection
Agency shall jointly submit a report containing the results of the study
conducted under subsection (a) to the Committee on Energy and Commerce of the
United States House of Representatives and to the Committee on Energy and
Natural Resources of the United States Senate.
SEC. 164. GAS FLARE STUDY.
(a) STUDY- The Secretary of Energy shall conduct a study of the economic
feasibility of installing small cogeneration facilities utilizing excess gas
flares at petrochemical facilities to provide reduced electricity costs to
customers living within 3 miles of the petrochemical facilities. The Secretary
shall solicit public comment to assist in preparing the report required under
subsection (b).
(b) REPORT- Not later than 18 months after the date of the enactment of
this Act, the Secretary of Energy shall transmit a report to the Congress on
the results of the study conducted under subsection (a).
SEC. 165. TELECOMMUTING STUDY.
(a) STUDY REQUIRED- The Secretary, in consultation with Commission, and
the NTIA, shall conduct a study of the energy conservation implications of the
widespread adoption of telecommuting in the United States.
(b) REQUIRED SUBJECTS OF STUDY- The study required by subsection (a) shall
analyze the following subjects in relation to the energy saving potential of
telecommuting:
(1) Reductions of energy use and energy costs in commuting and regular
office heating, cooling, and other operations.
(2) Other energy reductions accomplished by telecommuting.
(3) Existing regulatory barriers that hamper telecommuting, including
barriers to broadband telecommunications services deployment.
(4) Collateral benefits to the environment, family life, and other
values.
(c) REPORT REQUIRED- The Secretary shall submit to the President and the
Congress a report on the study required by this section not later than 6
months after the date of the enactment of this Act. Such report shall include
a description of the results of the analysis of each of the subject described
in subsection (b).
(d) DEFINITIONS- As used in this section:
(1) SECRETARY- The term `Secretary' means the Secretary of Energy.
(2) COMMISSION- The term `Commission' means the Federal Communications
Commission.
(3) NTIA- The term `NTIA' means the National Telecommunications and
Information Administration of the Department of Commerce.
(4) TELECOMMUTING- The term `telecommuting' means the performance of
work functions using communications technologies, thereby eliminating or
substantially reducing the need to commute to and from traditional
worksites.
TITLE II--AUTOMOBILE FUEL ECONOMY
SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NONPASSENGER AUTOMOBILES.
Section 32902(a) of title 49, United States Code, is amended--
(1) by inserting `(1)' after `NONPASSENGER AUTOMOBILES- '; and
(2) by adding at the end the following:
`(2) The Secretary shall prescribe under paragraph (1) average fuel
economy standards for automobiles (except passenger automobiles) manufactured
in model years 2004 through 2010 that are calculated to ensure that the
aggregate amount of gasoline projected to be used in those model years by
automobiles to which the standards apply is at least 5 billion gallons less
than the aggregate amount of gasoline that would be used in those model years
by such automobiles if they achieved only the fuel economy required under the
average fuel economy standard that applies under this subsection to
automobiles (except passenger automobiles) manufactured in model year
2002.'.
SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT AVERAGE FUEL ECONOMY
STANDARDS FOR NONPASSENGER AUTOMOBILES.
(a) IN GENERAL- The Secretary of Transportation shall, in prescribing
average fuel economy standards under section 32902(a) of title 49, United
States Code, for automobiles (except passenger automobiles) manufactured in
model year 2004, consider the potential benefits of--
(1) establishing a weight-based system for automobiles, that is based on
the inertia weight, curb weight, gross vehicle weight rating, or another
appropriate measure of such automobiles; and
(2) prescribing different fuel economy standards for automobiles that
are subject to the weight-based system.
(b) SPECIFIC CONSIDERATIONS- In implementing this section the
Secretary--
(1) shall consider any recommendations made in the National Academy of
Sciences study completed pursuant to the Department of Transportation and
Related Agencies Appropriations Act, 2000 (Public Law 106-346; 114 Stat.
2763 et seq.); and
(2) shall evaluate the merits of any weight-based system in terms of
motor vehicle safety, energy conservation, and competitiveness of and
employment in the United States automotive sector, and if a weight-based
system is established by the Secretary a manufacturer may trade credits
between or among the automobiles (except passenger automobiles) manufactured
by the manufacturer.
SEC. 203. DUAL FUELED AUTOMOBILES.
(a) PURPOSES- The purposes of this section are--
(1) to extend the manufacturing incentives for dual fueled automobiles,
as set forth in subsections (b) and (d) of section 32905 of title 49, United
States Code, through the 2008 model year; and
(2) to similarly extend the limitation on the maximum average fuel
economy increase for such automobiles, as set forth in subsection (a)(1) of
section 32906 of title 49, United States Code.
(1) MANUFACTURING INCENTIVES- Section 32905 of title 49, United States
Code, is amended as follows:
(A) Subsections (b) and (d) are each amended by striking `model years
1993-2004' and inserting `model years 1993-2008'.
(B) Subsection (f) is amended by striking `Not later than December 31,
2001, the Secretary' and inserting `Not later than December 31, 2005, the
Secretary'.
(C) Subsection (f)(1) is amended by striking `model year 2004' and
inserting `model year 2008'.
(D) Subsection (g) is amended by striking `Not later than September
30, 2000' and inserting `Not later than September 30, 2004'.
(2) MAXIMUM FUEL ECONOMY INCREASE- Subsection (a)(1) of section 32906 of
title 49, United States Code, is amended as follows:
(A) Subparagraph (A) is amended by striking `the model years
1993-2004' and inserting `model years 1993-2008'.
(B) Subparagraph (B) is amended by striking `the model years
2005-2008' and inserting `model years 2009-2012'.
SEC. 204. FUEL ECONOMY 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. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.
(a) IN GENERAL- Section 303(b)(1) of the Energy Policy Act of 1992 is
amended by adding the following at the end: `Of the total number of vehicles
acquired by a Federal fleet in fiscal years 2004 and 2005, at least 5 percent
of the vehicles in addition to those covered by the preceding sentence shall
be alternative fueled vehicles or hybrid vehicles and in fiscal year 2006 and
thereafter at least 10 percent of the vehicles in addition to those covered by
the preceding sentence shall be alternative fueled vehicles or hybrid
vehicles.'.
(b) DEFINITION- Section 301 of such Act is amended by striking `and' at
the end of paragraph (13), by striking the period at the end of paragraph (14)
and inserting `; and' and by adding at the end the following:
`(15) The term `hybrid vehicle' means a motor vehicle which draws
propulsion energy from onboard sources of stored energy which are both--
`(A) an internal combustion or heat engine using combustible fuel;
and
`(B) a rechargeable energy storage system.'.
SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTERNATIVE FUELS.
(a) IN GENERAL- Title III of the Energy Policy Act of 1992 (42 U.S.C.
13212 et seq.) is amended as follows:
(1) By adding at the end thereof the following:
`SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE FEDERAL GOVERNMENT
FOR LIGHT-DUTY MOTOR VEHICLES.
`(a) PURPOSES- The purposes of this section are to complement and
supplement the requirements of section 303 of this Act that Federal fleets, as
that term is defined in section 303(b)(3), acquire in the aggregate a minimum
percentage of alternative fuel vehicles, to encourage the manufacture and sale
or lease of such vehicles nationwide, and to achieve, in the aggregate, a
reduction in the amount of the petroleum-based fuels (other than the
alternative fuels defined in this title) used by new light-duty motor vehicles
acquired by the Federal Government in model years 2004 through 2010 and
thereafter.
`(b) IMPLEMENTATION- In furtherance of such purposes, such Federal fleets
in the aggregate shall reduce the purchase of petroleum-based nonalternative
fuels for such fleets beginning October 1, 2003, through September 30, 2009,
from the amount purchased for such fleets over a comparable period since
enactment of this Act, as determined by the Secretary, through the annual
purchase, in accordance with section 304, and the use of alternative fuels for
the light-duty motor vehicles of such Federal fleets, so as to achieve levels
which reflect total reliance by such fleets on the consumptive use of
alternative fuels consistent with the provisions of section 303(b) of this
Act. The Secretary shall, within 120 days after the enactment of this section,
promulgate, in consultation with the Administrator of the General Services
Administration and the Director of the Office of Management and Budget and
such other heads of entities referenced in section 303 within the executive
branch as such Director may designate, standards for the full and prompt
implementation of this section by such entities. The Secretary shall monitor
compliance with this section and such standards by all such fleets and shall
report annually to the Congress, based on reports by the heads of such fleets,
on the extent to which the requirements of this section and such standards are
being achieved. The report shall include information on annual reductions
achieved of petroleum-based fuels and the problems, if any, encountered in
acquiring alternative fuels and in requiring their use.'.
(2) By amending section 304(b) of such Act to read as follows:
`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary or, as appropriate, the head of each Federal
fleet subject to the provisions of this section and section 313 of this Act,
such sums as may be necessary to achieve the purposes of section 313(a) and
the provisions of this section. Such sums shall remain available until
expended.'.
(b) CLERICAL AMENDMENT- The table of contents in section 1(b) of such Act
is amended by adding at the end of the items relating to title III the
following:
`Sec. 313. Conservation of petroleum-based fuels by the Federal
Government for light-duty motor vehicles.'.
SEC. 207. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR
AUTOMOBILES.
(a) IN GENERAL- Not later than 30 days after the date of the enactment of
this Act, the Secretary of Transportation shall enter into an arrangement with
the National Academy of Sciences under which the Academy shall study the
feasibility and effects of reducing by model year 2010, by a significant
percentage, the use of fuel for automobiles.
(b) SUBJECTS OF STUDY- The study under this section shall include--
(1) examination of, and recommendation of alternatives to, the policy
under current Federal law of establishing average fuel economy standards for
automobiles and requiring each automobile manufacturer to comply with
average fuel economy standards that apply to the automobiles it
manufactures;
(2) examination of how automobile manufacturers could contribute toward
achieving the reduction referred to in subsection (a);
(3) examination of the potential of fuel cell technology in motor
vehicles in order to determine the extent to which such technology may
contribute to achieving the reduction referred to in subsection (a);
and
(4) examination of the effects of the reduction referred to in
subsection (a) on--
(B) the automobile industry, including sales of automobiles
manufactured in the United States;
(C) motor vehicle safety; and
(c) REPORT- The Secretary shall require the National Academy of Sciences
to submit to the Secretary and the Congress a report on the findings,
conclusion, and recommendations of the study under this section by not later
than 1 year after the date of the enactment of this Act.
TITLE III--NUCLEAR ENERGY
SEC. 301. LICENSE PERIOD.
Section 103 c. 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 initial duration of the
license may not exceed 40 years from the date on which the Commission finds,
before operation of the facility, that the acceptance criteria required by
section 185 b. are met.'.
SEC. 302. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) is
amended--
(1) by striking `for or is issued' and all that follows through `1702'
and inserting `to the Commission for, or is issued by the Commission, a
license or certificate';
(2) by striking `483a' and inserting `9701'; and
(3) by striking `, of applicants for, or holders of, such licenses or
certificates'.
SEC. 303. DEPLETED URANIUM HEXAFLUORIDE.
Section 1(b) of Public Law 105-204 is amended by striking `fiscal year
2002' and inserting `fiscal year 2005'.
SEC. 304. NUCLEAR REGULATORY COMMISSION MEETINGS.
If a quorum of the Nuclear Regulatory Commission gathers to discuss
official Commission business the discussions shall be recorded, and the
Commission shall notify the public of such discussions within 15 days after
they occur. The Commission shall promptly make a transcript of the recording
available to the public on request, except to the extent that public
disclosure is exempted or prohibited by law. This section shall not apply to a
meeting, within the meaning of that term under section 552b(a)(2) of title 5,
United States Code.
SEC. 305. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL DEMONSTRATION
PROJECTS FOR THE URANIUM MINING INDUSTRY.
(a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary $10,000,000 for each of fiscal years 2002, 2003,
and 2004 for--
(1) cooperative, cost-shared, agreements between the Department of
Energy and domestic uranium producers to identify, test, and develop
improved in situ leaching mining technologies, including low-cost
environmental restoration technologies that may be applied to sites after
completion of in situ leaching operations; and
(2) funding for competitively selected demonstration projects with
domestic uranium producers relating to--
(A) enhanced production with minimal environmental impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination activities.
(b) DOMESTIC URANIUM PRODUCER- For purposes of this section, the term
`domestic uranium producer' has the meaning given that term in section 1018(4)
of the Energy Policy Act of 1992 (42 U.S.C. 2296b-7(4)), except that the term
shall not include any producer that has not produced uranium from domestic
reserves on or after July 30, 1998.
SEC. 306. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION INDUSTRY.
There are authorized to be appropriated to the Secretary $800,000 for
contracting with the Nation's sole remaining uranium converter for the purpose
of performing research and development to improve the environmental and
economic performance of United States uranium conversion operations.
SEC. 307. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.
The Secretary of Energy shall prepare and submit a plan to Congress within
180 days after the date of the enactment of this Act that establishes scope,
cost, schedule, sequence of activities, and contracting strategy for--
(1) the decontamination and decommissioning of the Department of
Energy's surplus buildings and facilities at the Paducah Gaseous Diffusion
Plant that have no future anticipated reuse; and
(2) the remediation of Department of Energy Material Storage Areas at
the Paducah Gaseous Diffusion Plant.
Such plan shall inventory all surplus facilities and buildings, and
identify and rank health and safety risks associated with such facilities and
buildings. Such plan shall inventory all Department of Energy Material Storage
Areas, and identify and rank health and safety risks associated with such
Department of Energy Material Storage Areas. The Department of Energy shall
incorporate these risk factors in designing the sequence and schedule for the
plan. Such plan shall identify funding requirements that are in addition to
the expected outlays included in the Department of Energy's Environmental
Management Plan for the Paducah Gaseous Diffusion Plan.
SEC. 308. STUDY TO DETERMINE FEASIBILITY OF DEVELOPING COMMERCIAL NUCLEAR
ENERGY PRODUCTION FACILITIES AT EXISTING DEPARTMENT OF ENERGY SITES.
(a) IN GENERAL- The Secretary of Energy shall conduct a study to determine
the feasibility of developing commercial nuclear energy production facilities
at Department of Energy sites in existence on the date of the enactment of
this Act, including--
(1) options for how and where nuclear power plants can be developed on
existing Department of Energy sites;
(2) estimates on cost savings to the Federal Government that may be
realized by locating new nuclear power plants on Federal sites;
(3) the feasibility of incorporating new technology into nuclear power
plants located on Federal sites;
(4) potential improvements in the licensing and safety oversight
procedures of nuclear power plants located on Federal sites;
(5) an assessment of the effects of nuclear waste management policies
and projects as a result of locating nuclear power plants located on Federal
sites; and
(6) any other factors that the Secretary believes would be relevant in
making the determination.
(b) REPORT- Not later than 90 days after the date of the enactment of this
Act, the Secretary shall submit to Congress a report describing the results of
the study under subsection (a).
SEC. 309. PROHIBITION OF COMMERCIAL SALES OF URANIUM BY THE UNITED STATES
UNTIL 2009.
Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is amended
by adding at the end the following new subsection:
`(g) PROHIBITION ON SALES- With the exception of sales pursuant to
subsection (b)(2) (42 U.S.C.2297h-10(b)(2)), notwithstanding any other
provision of law, the United States Government shall not sell or transfer any
uranium (including natural uranium concentrates, natural uranium hexafluoride,
enriched uranium, depleted uranium, or uranium in any other form) through
March 23, 2009 (except sales or transfers for use by the Tennessee Valley
Authority in relation to the Department of Energy's HEU or Tritium programs,
or the Department or Energy research reactor sales program, or any depleted
uranium hexaflouride to be transferred to a designated Department of Energy
contractor in conjunction with the planned construction of the Depleted
Uranium Hexaflouride conversion plants in Portsmouth, Ohio, and Paducah,
Kentucky, to any natural uranium transferred to the U.S. Enrichment
Corporation from the Department of Energy to replace contaminated uranium
received from the Department of Energy when the U.S. Enrichment Corporation
was privatized in July, 1998, or for emergency purposes in the event of a
disruption in supply to end users in the United States). The aggregate of
sales or transfers of uranium by the United States Government after March 23,
2009, shall not exceed 3,000,000 pounds U3O8 per calendar
year.'.
TITLE IV--HYDROELECTRIC ENERGY
SEC. 401. 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, and the Secretary of the
department under whose supervision such reservation falls deems a condition to
such license to be necessary under the first proviso of subsection (e), the
license applicant or any other party to the licensing proceeding 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 party proposing such alternative condition, that the
alternative condition--
`(A) provides no less protection for the reservation than provided by
the condition deemed necessary 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 condition deemed necessary by the Secretary.
`(3) Within 1 year after the enactment of this subsection, each Secretary
concerned shall, by rule, establish a process to expeditiously resolve
conflicts arising under this subsection.'.
(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 Commission shall require a licensee to construct,
maintain, or operate a fishway prescribed by the Secretary of the Interior or
the Secretary of Commerce under this section, the licensee or any other party
to the proceeding 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 party proposing such alternative, that
the alternative--
`(A) will be no less effective 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) Within 1 year after the enactment of this subsection, the Secretary
of the Interior and the Secretary of Commerce shall each, by rule, establish a
process to expeditiously resolve conflicts arising under this subsection.'.
SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.
(a) DATA COLLECTION PROCEDURES- The Federal Energy Regulatory Commission
shall revise its procedures regarding the collection of data in connection
with the Commission's consideration of hydroelectric licenses under the
Federal Power Act. Such revised data collection procedures shall be designed
to provide the Commission with complete and accurate information concerning
the time and costs to parties involved in the licensing process. Such data
shall be available for each significant stage in the licensing process and
shall be designed to identify projects with similar characteristics so that
analyses can be made of the time and costs involved in licensing proceedings
based upon the different characteristics of those proceedings.
(b) REPORTS- Within 6 months after the date of the enactment of this Act,
the Commission shall notify the Committee on Energy and Commerce of the United
States House of Representatives and the Committee on Energy and Natural
Resources of the United States Senate of the progress made by the Commission
under subsection (a), and within 1 year after such date of the enactment, the
Commission shall submit a report to such Committees specifying the measures
taken by the Commission pursuant to subsection (a).
TITLE V--FUELS
SEC. 501. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.
Not later than 60 days after the enactment of the Act, the Administrator
of the Environmental Protection Agency shall commence a rulemaking to
determine whether modifications to the regulations set forth in 40 CFR Section
80.78 and any associated regulations regarding the transition to high ozone
season reformulated gasoline are necessary to ensure that the transition to
high ozone season reformulated gasoline is conducted in a manner that
minimizes disruptions to the general availability and affordability of
gasoline, and maximizes flexibility with regard to the draining and inventory
management of gasoline storage tanks located at refineries, terminals,
wholesale and retail outlets, consistent with the goals of the Clean Air Act.
The Administrator shall propose and take final action in such rulemaking to
ensure that any modifications are effective and implemented at least 60 days
prior to the beginning of the high ozone season for the year 2002.
SEC. 502. GASOLINE BLENDSTOCK REQUIREMENTS.
Not later than 60 days after the enactment of this Act, the Administrator
of the Environmental Protection Agency shall commence a rulemaking to
determine whether modifications to product transfer documentation, accounting,
compliance calculation, and other requirements contained in the regulations of
the Administrator set forth in section 80.102 of title 40 of the Code of
Federal Regulations relating to gasoline blendstocks are necessary to
facilitate the movement of gasoline and gasoline feedstocks among different
regions throughout the country and to improve the ability of petroleum
refiners and importers to respond to regional gasoline shortages and prevent
unreasonable short-term price increases. The Administrator shall take into
consideration the extent to which such requirements have been, or will be,
rendered unnecessary or inefficient by reason of subsequent environmental
safeguards that were not in effect at the time the regulations in section
80.102 of title 40 of the Code of Federal Regulations were promulgated. The
Administrator shall propose and take final action in such rulemaking to ensure
that any modifications are effective and implemented at least 60 days prior to
the beginning of the high ozone season for the year 2002.
SEC. 503. BOUTIQUE FUELS.
(a) JOINT STUDY- The Administrator of the Environmental Protection Agency
and the Secretary of Energy shall jointly conduct a study of all Federal,
State, and local requirements regarding motor vehicle fuels, including
requirements relating to reformulated gasoline, volatility (Reid Vapor
Pressure), oxygenated fuel, diesel fuel and other requirements that vary from
State to State, region to region, or locality to locality. The study shall
analyze--
(1) the effect of the variety of such requirements on the price of motor
vehicle fuels to the consumer;
(2) the availability and affordability of motor vehicle fuels in
different States and localities;
(3) the effect of Federal, State, and local regulations, including
multiple fuel requirements, on domestic refineries and the fuel distribution
system;
(4) the effect of such requirements on local, regional, and national air
quality requirements and goals;
(5) the effect of such requirements on vehicle emissions;
(6) the feasibility of developing national or regional fuel
specifications for the contiguous United States that would--
(A) enhance flexibility in the fuel distribution infrastructure and
improve fuel fungibility;
(B) reduce price volatility and costs to consumers and
producers;
(C) meet local, regional, and national air quality requirements and
goals; and
(D) provide increased gasoline market liquidity;
(7) the extent to which the Environmental Protection Agency's Tier II
requirements for conventional gasoline may achieve in future years the same
or similar air quality results as State reformulated gasoline programs and
State programs regarding gasoline volatility (RVP); and
(8) the feasibility of providing incentives to promote cleaner burning
fuel.
(b) REPORT- By December 31, 2001, the Administrator of the Environmental
Protection Agency and the Secretary of Energy shall submit a report to the
Congress containing the results of the study conducted under subsection (a).
Such report shall contain recommendations for legislative and administrative
actions that may be taken to simplify the national distribution system for
motor vehicle fuel, make such system more cost-effective, and reduce the costs
and increase the availability of motor vehicle fuel to the end user while
meeting the requirements of the Clean Air Act. Such recommendations shall take
into account the need to provide lead time for refinery and fuel distribution
system modifications necessary to assure adequate fuel supply for all
States.
SEC. 504. FUNDING FOR MTBE CONTAMINATION.
Notwithstanding any other provision of law, there is authorized to be
appropriated to the Administrator of the Environmental Protection Agency from
the Leaking Underground Storage Trust Fund not more than $200,000,000 to be
used for taking such action, limited to assessment, corrective action,
inspection of underground storage tank systems, and groundwater monitoring in
connection with MTBE contamination, as the Administrator deems necessary to
protect human health and the environment from releases of methyl tertiary
butyl ether (MTBE) from underground storage tanks.
TITLE VI--RENEWABLE ENERGY
SEC. 601. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) RESOURCE ASSESSMENT- Not later than 1 year after the date of the
enactment of this Act, and each year thereafter, the Secretary of Energy shall
publish an assessment by the National Laboratories of all renewable energy
resources available within the United States.
(b) CONTENTS OF REPORT- The report published under subsection (a) shall
contain each of the following:
(1) A detailed inventory describing the available amount and
characteristics of solar, wind, biomass, geothermal, hydroelectric and other
renewable energy sources.
(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.
SEC. 602. RENEWABLE ENERGY PRODUCTION INCENTIVE.
Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is amended
as follows:
(1) In subsection (a) by striking `and which satisfies' and all that
follows through `Secretary shall establish.' and inserting `. 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.'.
(A) by striking `a State or any political' and all that follows
through `nonprofit electrical cooperative' and inserting `an
electricity-generating cooperative exempt from taxation under section
501(c)(12) or section 1381(a)(2)(C) of the Internal Revenue Code of 1986,
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
(B) By inserting `landfill gas,' after `wind, biomass,'.
(3) In subsection (c) 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'.
(4) In subsection (d) 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'.
(5) In subsection (e)(1) by inserting `landfill gas,' after `wind,
biomass,'.
(6) In subsection (f) by striking `the expiration of' and all that
follows through `of this section' and inserting `September 30, 2023'.
(A) by striking `1993, 1994, and 1995' and inserting `2003 through
2023'; and
(B) by inserting `Funds may be appropriated pursuant to this
subsection to remain available until expended.' after `purposes of this
section.'.
SEC. 603. STUDY OF ETHANOL FROM SOLID WASTE LOAN GUARANTEE PROGRAM.
The Secretary of Energy shall conduct a study of the feasibility of
providing guarantees for loans by private banking and investment institutions
for facilities for the processing and conversion of municipal solid waste and
sewage sludge into fuel ethanol and other commercial byproducts, and not later
than 90 days after the date of the enactment of this Act shall transmit to the
Congress a report on the results of the study.
SEC. 604. STUDY OF RENEWABLE FUEL CONTENT.
(a) STUDY- The Administrator of the Environmental Protection Agency and
the Secretary of Energy shall jointly conduct a study of the feasibility of
developing a requirement that motor vehicle fuel sold or introduced into
commerce in the United States in calendar year 2002 or any calendar year
thereafter by a refiner, blender, or importer shall, on a 6-month average
basis, be comprised of a quantity of renewable fuel, measured in
gasoline-equivalent gallons. As part of this study, the Administrator and
Secretary shall evaluate the use of a banking and trading credit system and
the feasibility and desirability of requiring an increasing percentage of
renewable fuel to be phased in over a 15-year period.
(b) REPORT TO CONGRESS- Not later than 6 months after the date of the
enactment of this Act, the Administrator and the Secretary shall transmit to
the Congress a report on the results of the study conducted under this
section.
TITLE VII--PIPELINES
SEC. 701. 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.
SEC. 702. HISTORIC PIPELINES.
Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) is amended by adding
at the end the following new subsection:
`(i) Notwithstanding the National Historic Preservation Act, a
transportation facility shall not be eligible for inclusion on the National
Register of Historic Places unless--
`(1) the Commission has permitted the abandonment of the transportation
facility pursuant to subsection (b) of this section, or
`(2) the owner of the facility has given written consent to such
eligibility.
Any transportation facility deemed eligible for inclusion on the National
Register of Historic Places prior to the date of the enactment of this
subsection shall no longer be eligible unless the owner of the facility gives
written consent to such eligibility.'.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 801. WASTE REDUCTION AND USE OF ALTERNATIVES.
(a) GRANT AUTHORITY- The Secretary of Energy is authorized to make a
single grant to a qualified institution to examine and develop the feasibility
of burning post-consumer carpet in cement kilns as an alternative energy
source. The purposes of the grant shall include determining--
(1) how post-consumer carpet can be burned without disrupting kiln
operations;
(2) the extent to which overall kiln emissions may be reduced; and
(3) how this process provides benefits to both cement kiln operations
and carpet suppliers.
(b) QUALIFIED INSTITUTION- For the purposes of subsection (a), a qualified
institution is a research-intensive institution of higher learning with
demonstrated expertise in the fields of fiber recycling and logistical
modeling of carpet waste collection and preparation.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy for carrying out this section $275,000
for fiscal year 2002, to remain available until expended.
SEC. 802. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.
(a) REPORT- The Secretary of Energy, in consultation with the heads of
other relevant Federal agencies, shall include in each report under section
801(c) of the Department of Energy Organization Act a section which evaluates
the progress the United States has made toward obtaining the goal of not more
than 50 percent dependence on foreign oil sources by 2010.
(b) ALTERNATIVES- The information required under this section to be
included in the reports under section 801(c) of the Department of Energy
Organization Act shall include a specification of what legislative or
administrative actions must be implemented to meet this goal and set forth a
range of options and alternatives with a cost/benefit analysis for each option
or alternative together with an estimate of the contribution each option or
alternative could make to reduce foreign oil imports. The Secretary shall
solicit information from the public and request information from the Energy
Information Agency and other agencies to develop the information required
under this section. The information shall indicate, in detail, options and
alternatives to--
(1) increase the use of renewable domestic energy sources, including
conventional and nonconventional sources;
(2) conserve energy resources, including improving efficiencies and
decreasing consumption; and
(3) increase domestic production and use of oil, natural gas, nuclear,
and coal, including any actions necessary to provide access to, and
transportation of, these energy resources.
SEC. 803. STUDY OF AIRCRAFT EMISSIONS.
The Secretary of Transportation and the Administrator of the Environmental
Protection Agency shall jointly commence a study within 60 days after the
enactment of this Act to investigate the impact of aircraft emissions on air
quality in areas that are considered to be in nonattainment for the national
ambient air quality standard for ozone. As part of this study, the Secretary
and the Administrator shall focus on the impact of emissions by aircraft
idling at airports and on the contribution of such emissions as a percentage
of total emissions in the nonattainment area. Within 180 days of the
commencement of the study, the Secretary and the Administrator shall submit a
report to the Committees on Energy and Commerce and Transportation and
Infrastructure of the United States House of Representatives and to the
Committees on Environment and Public Works and Commerce, Science, and
Transportation of the United States Senate containing the results of the study
and recommendations with respect to a plan to maintain comprehensive data on
aircraft emissions and methods by which such emissions may be reduced, without
increasing individual aircraft noise, in order to assist in the attainment of
the national ambient air quality standards.
DIVISION B
SEC. 2001. SHORT TITLE.
This division may be cited as the `Comprehensive Energy Research and
Technology Act of 2001'.
SEC. 2002. FINDINGS.
The Congress finds that--
(1) the Nation's prosperity and way of life are sustained by energy
use;
(2) the growing imbalance between domestic energy production and
consumption means that the Nation is becoming increasingly reliant on
imported energy, which has the potential to undermine the Nation's economy,
standard of living, and national security;
(3) energy conservation and energy efficiency help maximize the use of
available energy resources, reduce energy shortages, lower the Nation's
reliance on energy imports, mitigate the impacts of high energy prices, and
help protect the environment and public health;
(4) development of a balanced portfolio of domestic energy supplies will
ensure that future generations of Americans will have access to the energy
they need;
(5) energy efficiency technologies, renewable and alternative energy
technologies, and advanced energy systems technologies will help diversify
the Nation's energy portfolio with few adverse environmental impacts and are
vital to delivering clean energy to fuel the Nation's economic growth;
(6) development of reliable, affordable, and environmentally sound
energy efficiency technologies, renewable and alternative energy
technologies, and advanced energy systems technologies will require
maintenance of a vibrant fundamental scientific knowledge base and continued
scientific and technological innovations that can be accelerated by Federal
funding, whereas commercial deployment of such systems and technologies are
the responsibility of the private sector;
(7) Federal funding should focus on those programs, projects, and
activities that are long-term, high-risk, noncommercial, and well-managed,
and that provide the potential for scientific and technological advances;
and
(8) public-private partnerships should be encouraged to leverage scarce
taxpayer dollars.
SEC. 2003. PURPOSES.
The purposes of this division are to--
(1) protect and strengthen the Nation's economy, standard of living, and
national security by reducing dependence on imported energy;
(2) meet future needs for energy services at the lowest total cost to
the Nation, including environmental costs, giving balanced and comprehensive
consideration to technologies that improve the efficiency of energy end uses
and that enhance energy supply;
(3) reduce the air, water, and other environmental impacts (including
emissions of greenhouse gases) of energy production, distribution,
transportation, and use through the development of environmentally
sustainable energy systems;
(4) consider the comparative environmental impacts of the energy saved
or produced by specific programs, projects, or activities;
(5) maintain the technological competitiveness of the United States and
stimulate economic growth through the development of advanced energy systems
and technologies;
(6) foster international cooperation by developing international markets
for domestically produced sustainable energy technologies, and by
transferring environmentally sound, advanced energy systems and technologies
to developing countries to promote sustainable development;
(7) provide sufficient funding of programs, projects, and activities
that are performance-based and modeled as public-private partnerships, as
appropriate; and
(8) enhance the contribution of a given program, project, or activity to
fundamental scientific knowledge.
SEC. 2004. GOALS.
(a) IN GENERAL- Subject to subsection (b), in order to achieve the
purposes of this division under section 2003, the Secretary should conduct a
balanced energy research, development, demonstration, and commercial
application portfolio of programs guided by the following goals to meet the
purposes of this division under section 2003.
(1) ENERGY CONSERVATION AND ENERGY EFFICIENCY-
(A) For the Building Technology, State and Community Sector, the
program should develop technologies, housing components, designs, and
production methods that will, by 2010--
(i) reduce the monthly energy cost of new housing by 20 percent,
compared to the cost as of the date of the enactment of this
Act;
(ii) cut the environmental impact and energy use of new housing by
50 percent, compared to the impact and use as of the date of the
enactment of this Act; and
(iii) improve durability and reduce maintenance costs by 50 percent
compared to the durability and costs as of the date of the enactment of
this Act.
(B) For the Industry Sector, the program should, in cooperation with
the affected industries, improve the energy intensity of the major
energy-consuming industries by at least 25 percent by 2010, compared to
the energy intensity as of the date of the enactment of this Act.
(C) For Power Technologies, the program should, in cooperation with
the affected industries--
(i) develop a microturbine (40 to 300 kilowatt) that is more than 40
percent more efficient by 2006, and more than 50 percent more efficient
by 2010, compared to the efficiency as of the date of the enactment of
this Act; and
(ii) develop advanced materials for combustion systems that reduce
emissions of nitrogen oxides by 30 to 50 percent while increasing
efficiency 5 to 10 percent by 2007, compared to such emissions as of the
date of the enactment of this Act.
(D) For the Transportation Sector, the program should, in cooperation
with affected industries--
(i) develop a production prototype passenger automobile that has
fuel economy equivalent to 80 miles per gallon of gasoline by
2004;
(ii) develop class 7 and 8 heavy duty trucks and buses with ultra
low emissions and the ability to use an alternative fuel that has an
average fuel economy equivalent to--
(I) 10 miles per gallon of gasoline by 2007; and
(II) 13 miles per gallon of gasoline by 2010;
(iii) develop a production prototype of a passenger automobile with
zero equivalent emissions that has an average fuel economy of 100 miles
per gallon of gasoline by 2010; and
(iv) improve, by 2010, the average fuel economy of
trucks--
(I) in classes 1 and 2 by 300 percent; and
(II) in classes 3 through 6 by 200 percent,
compared to the fuel economy as of the date of the enactment of this
Act.
(A) For Hydrogen Research, to carry out the Spark M. Matsunaga
Hydrogen Research, Development, and Demonstration Act of 1990, as amended
by subtitle A of title II of this division.
(i) The program should reduce the cost of bioenergy relative to
other energy sources to enable the United States to triple bioenergy use
by 2010.
(ii) For biopower systems, the program should reduce the cost of
such systems to enable commercialization of integrated power-generating
technologies that employ gas turbines and fuel cells integrated with
bioenergy gasifiers within 5 years after the date of the enactment of
this Act.
(iii) For biofuels, the program should accelerate research,
development, and demonstration on advanced enzymatic hydrolysis
technology for making ethanol from cellulosic feedstock, with the goal
that between 2010 and 2015 ethanol produced from energy crops would be
fully competitive in terms of price with gasoline as a neat fuel, in
either internal combustion engines or fuel cell vehicles.
(C) For Geothermal Technology Development, the program should focus on
advanced concepts for the long term. The first priority should be
high-grade enhanced geothermal systems; the second priority should be
lower grade, hot dry rock, and geopressured systems; and the third
priority should be support of field demonstrations of enhanced geothermal
systems technology, including sites in lower grade areas to demonstrate
the benefits of reservoir concepts to different conditions.
(D) For Hydropower, the program should provide a new generation of
turbine technologies that will increase generating capacity and will be
less damaging to fish and aquatic ecosystems.
(E) For Concentrating Solar Power, the program should strengthen
ongoing research, development, and demonstration combining high-efficiency
and high-temperature receivers with advanced thermal storage and power
cycles, with the goal of making solar-only power (including baseload solar
power) widely competitive with fossil fuel power by 2015. The program
should limit or halt its research and development on power-tower and
power-trough technologies because further refinements to these concepts
will not further their deployment, and should assess the market prospects
for solar dish/engine technologies to determine whether continued research
and development is warranted.
(F) For Photovoltaic Energy Systems, the program should pursue
research, development, and demonstration that will, by 2005, increase the
efficiency of thin film modules from the current 7 percent to 11 percent
in multi-million watt production; reduce the direct manufacturing cost of
photovoltaic modules by 30 percent from the current $2.50 per watt to
$1.75 per watt by 2005; and establish greater than a 20-year lifetime of
photovoltaic systems by improving the reliability and lifetime of
balance-of-system components and reducing recurring cost by 40 percent.
The program's top priority should be the development of sound
manufacturing technologies for thin-film modules, and the program should
make a concerted effort to integrate fundamental research and basic
engineering research.
(G) For Solar Building Technology Research, the program should
complete research and development on new polymers and manufacturing
processes to reduce the cost of solar water heating by 50 percent by 2004,
compared to the cost as of the date of the enactment of this Act.
(H) For Wind Energy Systems, the program should reduce the cost of
wind energy to three cents per kilowatt-hour at Class 6 (15 miles-per-hour
annual average) wind sites by 2004, and 4 cents per kilowatt-hour in Class
4 (13 miles-per-hour annual average) wind sites by 2015, and further if
required so that wind power can be widely competitive with
fossil-fuel-based electricity in a restructured electric industry. Program
research on advanced wind turbine technology should focus on turbulent
flow studies, durable materials to extend turbine life, blade efficiency,
and higher efficiency operation in low quality wind regimes.
(I) For Electric Energy Systems and Storage, including High
Temperature Superconducting Research and Development, Energy Storage
Systems, and Transmission Reliability, the program should develop high
capacity superconducting transmission lines and generators, highly
reliable energy storage systems, and distributed generating systems to
accommodate multiple types of energy sources under common interconnect
standards.
(J) For the International Renewable Energy and Renewable Energy
Production Incentive programs, and Renewable Program Support, the program
should encourage the commercial application of renewable energy
technologies by developed and developing countries, State and local
governmental entities and nonprofit electric cooperatives, and by the
competitive domestic market.
(A) For university nuclear science and engineering, the program should
carry out the provisions of subtitle A of title III of this
division.
(B) For fuel cycle research, development, and demonstration, the
program should carry out the provisions of subtitle B of title III of this
division.
(C) For the Nuclear Energy Research Initiative, the program should
accomplish the objectives of section 2341(b) of this Act.
(D) For the Nuclear Energy Plant Optimization Program, the program
should accomplish the objectives of section 2342(b) of this Act.
(E) For Nuclear Energy Technologies, the program should carry out the
provisions of section 2343 of this Act.
(F) For Advanced Radioisotope Power Systems, the program should ensure
that the United States has adequate capability to power future satellite
and space missions.
(A) For core fossil energy research and development, the program
should achieve the goals outlined by the Department's Vision 21 Program.
This research should address fuel-flexible gasification and turbines, fuel
cells, advanced-combustion systems, advanced fuels and chemicals, advanced
modeling and systems analysis, materials and heat exchangers,
environmental control technologies, gas-stream purification,
gas-separation technology, and sequestration research and development
focused on cost-effective novel concepts for capturing, reusing or
storing, or otherwise mitigating carbon and other greenhouse gas
emissions.
(B) For offshore oil and natural gas resources, the program should
investigate and develop technologies to--
(i) extract methane hydrates in coastal waters of the United States,
in accordance with the provisions of the Methane Hydrate Research and
Development Act of 2000; and
(ii) develop natural gas and oil reserves in the ultra-deepwater of
the Central and Western Gulf of Mexico. Research and development on
ultra-deepwater resource recovery shall focus on improving the safety
and efficiency of such recovery and of sub-sea production technology
used for such recovery, while lowering costs.
(C) For transportation fuels, the program should support a
comprehensive transportation fuels strategy to increase the price
elasticity of oil supply and demand by focusing research on reducing the
cost of producing transportation fuels from natural gas and indirect
liquefaction of coal.
(5) SCIENCE- The Secretary, through the Office of Science,
should--
(A) develop and maintain a robust portfolio of fundamental scientific
and energy research, including High Energy and Nuclear Physics, Biological
and Environmental Research, Basic Energy Sciences (including Materials
Sciences, Chemical Sciences, Engineering and Geosciences, and Energy
Biosciences), Advanced Scientific Computing, Energy Research and Analysis,
Multiprogram Energy Laboratories-Facilities Support, Fusion Energy
Sciences, and Facilities and Infrastructure;
(B) maintain, upgrade, and expand, as appropriate, and in accordance
with the provisions of this division, the scientific user facilities
maintained by the Office of Science, and ensure that they are an integral
part of the Department's mission for exploring the frontiers of
fundamental energy sciences; and
(C) ensure that its fundamental energy sciences programs, where
appropriate, help inform the applied research and development programs of
the Department.
(b) REVIEW AND ASSESSMENT- The Secretary shall perform an assessment that
establishes measurable cost and performance-based goals, or that modifies the
goals under subsection (a), as appropriate, for 2005, 2010, 2015, and 2020 for
each of the programs authorized by this division that would enable each such
program to meet the purposes of this division under section 2003. Such
assessment shall be based on the latest scientific and technical knowledge,
and shall also take into consideration, as appropriate, the comparative
environmental impacts (including emissions of greenhouse gases) of the energy
saved or produced by specific programs.
(c) CONSULTATION- In establishing the measurable cost and
performance-based goals under subsection (b), the Secretary shall consult with
the private sector, institutions of higher learning, national laboratories,
environmental organizations, professional and technical societies, and any
other persons as the Secretary considers appropriate.
(d) SCHEDULE- The Secretary shall--
(1) issue and publish in the Federal Register a set of draft measurable
cost and performance-based goals for the programs authorized by this
division for public comment--
(A) in the case of a program established before the date of the
enactment of this Act, not later than 120 days after the date of the
enactment of this Act; and
(B) in the case of a program not established before the date of the
enactment of this Act, not later than 120 days after the date of
establishment of the program;
(2) not later than 60 days after the date of publication under paragraph
(1), after taking into consideration any public comments received, transmit
to the Congress and publish in the Federal Register the final measurable
cost and performance-based goals; and
(3) update all such cost and performance-based goals on a biennial
basis.
SEC. 2005. DEFINITIONS.
For purposes of this division, except as otherwise provided--
(1) the term `Administrator' means the Administrator of the
Environmental Protection Agency;
(2) the term `appropriate congressional committees' means--
(A) the Committee on Science and the Committee on Appropriations of
the House of Representatives; and
(B) the Committee on Energy and Natural Resources and the Committee on
Appropriations of the Senate;
(3) the term `Department' means the Department of Energy; and
(4) the term `Secretary' means the Secretary of Energy.
SEC. 2006. AUTHORIZATIONS.
Authorizations of appropriations under this division are for environmental
research and development, scientific and energy research, development, and
demonstration, and commercial application of energy technology programs,
projects, and activities.
SEC. 2007. BALANCE OF FUNDING PRIORITIES.
(a) SENSE OF CONGRESS- It is the sense of the Congress that the funding of
the various programs authorized by titles I through IV of this division should
remain in the same proportion to each other as provided in this division,
regardless of the total amount of funding made available for those
programs.
(b) REPORT TO CONGRESS- If for fiscal year 2002, 2003, or 2004 the amounts
appropriated in general appropriations Acts for the programs authorized in
titles I through IV of this division are not in the same proportion to one
another as are the authorizations for such programs in this division, the
Secretary and the Administrator shall, within 60 days after the date of the
enactment of the last general appropriations Act appropriating amounts for
such programs, transmit to the appropriate congressional committees a report
describing the programs, projects, and activities that would have been funded
if the proportions provided for in this division had been maintained in the
appropriations. The amount appropriated for the program receiving the highest
percentage of its authorized funding for a fiscal year shall be used as the
baseline for calculating the proportional deficiencies of appropriations for
other programs in that fiscal year.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
Subtitle A--Alternative Fuel Vehicles
SEC. 2101. SHORT TITLE.
This subtitle may be cited as the `Alternative Fuel Vehicle Acceleration
Act of 2001'.
SEC. 2102. DEFINITIONS.
For the purposes of this subtitle, the following definitions apply:
(1) ALTERNATIVE FUEL VEHICLE-
(A) IN GENERAL- Except as provided in subparagraph (B), the term
`alternative fuel vehicle' means a motor vehicle that is
powered--
(i) in whole or in part by electricity, including electricity
supplied by a fuel cell;
(ii) by liquefied natural gas;
(iii) by compressed natural gas;
(iv) by liquefied petroleum gas;
(vi) by methanol or ethanol at no less than 85 percent by volume;
or
(B) EXCLUSIONS- The term `alternative fuel vehicle' does not
include--
(i) any vehicle designed to operate solely on gasoline or diesel
derived from fossil fuels, regardless of whether it can also be operated
on an alternative fuel; or
(ii) any vehicle that the Secretary determines, by rule, does not
yield substantial environmental benefits over a vehicle operating solely
on gasoline or diesel derived from fossil fuels.
(2) PILOT PROGRAM- The term `pilot program' means the competitive grant
program established under section 2103.
(3) ULTRA-LOW SULFUR DIESEL VEHICLE- The term `ultra-low sulfur diesel
vehicle' means a vehicle powered by a heavy-duty diesel engine that--
(A) is fueled by diesel fuel which contains sulfur at not more than 15
parts per million; and
(B) emits not more than the lesser of--
(i) for vehicles manufactured in--
(I) model years 2001 through 2003, 3.0 grams per brake
horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and
.01 grams per brake horsepower-hour of particulate matter;
and
(II) 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;
or
(ii) the emissions of nonmethane hydrocarbons, oxides of nitrogen,
and particulate matter of the best performing technology of ultra-low
sulfur diesel vehicles of the same type that are commercially
available.
SEC. 2103. PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary shall establish a competitive grant pilot
program to provide not more than 15 grants to State governments, local
governments, or metropolitan transportation authorities to carry out a project
or projects for the purposes described in subsection (b).
(b) GRANT PURPOSES- Grants under this section may be used for the
following purposes:
(1) The acquisition of alternative fuel vehicles, including--
(B) buses used for public transportation or transportation to and from
schools;
(C) delivery vehicles for goods or services;
(D) ground support vehicles at public airports, including vehicles to
carry baggage or push airplanes away from terminal gates; and
(E) motorized two-wheel bicycles, scooters, or other vehicles for use
by law enforcement personnel or other State or local government or
metropolitan transportation authority employees.
(2) The acquisition of ultra-low sulfur diesel vehicles.
(3) Infrastructure necessary to directly support an alternative fuel
vehicle project funded by the grant, including fueling and other support
equipment.
(4) Operation and maintenance of vehicles, infrastructure, and equipment
acquired as part of a project funded by the grant.
(1) REQUIREMENTS- The Secretary shall issue requirements for applying
for grants under the pilot program. At a minimum, the Secretary shall
require that applications be submitted by the head of a State or local
government or a metropolitan transportation authority, or any combination
thereof, and shall include--
(A) at least one project to enable passengers or goods to be
transferred directly from one alternative fuel vehicle or ultra-low sulfur
diesel vehicle to another in a linked transportation system;
(B) a description of the projects proposed in the application,
including how they meet the requirements of this subtitle;
(C) an estimate of the ridership or degree of use of the projects
proposed in the application;
(D) an estimate of the air pollution emissions reduced and fossil fuel
displaced as a result of the projects proposed in the application, and a
plan to collect and disseminate environmental data, related to the
projects to be funded under the grant, over the life of the
projects;
(E) a description of how the projects proposed in the application will
be sustainable without Federal assistance after the completion of the term
of the grant;
(F) a complete description of the costs of each project proposed in
the application, including acquisition, construction, operation, and
maintenance costs over the expected life of the project;
(G) a description of which costs of the projects proposed in the
application will be supported by Federal assistance under this subtitle;
and
(H) 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 projects, and a commitment by the applicant to use
such fuel in carrying out the projects.
(2) PARTNERS- An applicant under paragraph (1) may carry out projects
under the pilot program in partnership with public and private
entities.
(d) SELECTION CRITERIA- In evaluating applications under the pilot
program, the Secretary shall consider each applicant's previous experience
with similar projects and shall give priority consideration to applications
that--
(1) are most likely to maximize protection of the environment;
(2) demonstrate the greatest commitment on the part of the applicant to
ensure funding for the proposed projects and the greatest likelihood that
each project proposed in the application will be maintained or expanded
after Federal assistance under this subtitle is completed; and
(3) exceed the minimum requirements of subsection (c)(1)(A).
(e) PILOT PROJECT REQUIREMENTS-
(1) MAXIMUM AMOUNT- The Secretary shall not provide more than
$20,000,000 in Federal assistance under the pilot program to any
applicant.
(2) COST SHARING- The Secretary shall not provide more than 50 percent
of the cost, incurred during the period of the grant, of any project under
the pilot program.
(3) MAXIMUM PERIOD OF GRANTS- The Secretary shall not fund any applicant
under the pilot program for more than 5 years.
(4) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the maximum
extent practicable to achieve nationwide deployment of alternative fuel
vehicles through the pilot program, and shall ensure a broad geographic
distribution of project sites.
(5) TRANSFER OF INFORMATION AND KNOWLEDGE- The Secretary shall establish
mechanisms to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the pilot program
participants and to other interested parties, including other applicants
that submitted applications.
(1) PUBLICATION- Not later than 3 months after the date of the enactment
of this Act, the Secretary shall publish in the Federal Register, Commerce
Business Daily, and elsewhere as appropriate, a request for applications to
undertake projects under the pilot program. Applications shall be due within
6 months of the publication of the notice.
(2) SELECTION- Not later than 6 months after the date by which
applications for grants are due, the Secretary shall select by competitive,
peer review all applications for projects to be awarded a grant under the
pilot program.
(g) 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 the acquisition of ultra-low sulfur diesel vehicles.
SEC. 2104. REPORTS TO CONGRESS.
(a) INITIAL REPORT- Not later than 2 months after the date grants are
awarded under this subtitle, the Secretary shall transmit to the appropriate
congressional committees a report containing--
(1) an identification of the grant recipients and a description of the
projects to be funded;
(2) an identification of other applicants that submitted applications
for the pilot program; and
(3) a description of the mechanisms used by the Secretary to ensure that
the information and knowledge gained by participants in the pilot program
are transferred among the pilot program participants and to other interested
parties, including other applicants that submitted applications.
(b) EVALUATION- Not later than 3 years after the date of the enactment of
this Act, and annually thereafter until the pilot program ends, the Secretary
shall transmit to the appropriate congressional committees a report containing
an evaluation of the effectiveness of the pilot program, including an
assessment of the benefits to the environment derived from the projects
included in the pilot program as well as an estimate of the potential benefits
to the environment to be derived from widespread application of alternative
fuel vehicles and ultra-low sulfur diesel vehicles.
SEC. 2105. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary $200,000,000 to
carry out this subtitle, to remain available until expended.
Subtitle B--Distributed Power Hybrid Energy Systems
SEC. 2121. FINDINGS.
The Congress makes the following findings:
(1) Our ability to take advantage of our renewable, indigenous resources
in a cost-effective manner can be greatly advanced through systems that
compensate for the intermittent nature of these resources through
distributed power hybrid systems.
(2) Distributed power hybrid systems can--
(A) shelter consumers from temporary energy price volatility created
by supply and demand mismatches;
(B) increase the reliability of energy supply; and
(C) address significant local differences in power and economic
development needs and resource availability that exist throughout the
United States.
(3) Realizing these benefits will require a concerted and integrated
effort to remove market barriers to adopting distributed power hybrid
systems by--
(A) developing the technological foundation that enables designing,
testing, certifying, and operating distributed power hybrid systems;
and
(B) providing the policy framework that reduces such
barriers.
(4) While many of the individual distributed power hybrid systems
components are either available or under development in existing private and
public sector programs, the capabilities to integrate these components into
workable distributed power hybrid systems that maximize benefits to
consumers in a safe manner often are not coherently being addressed.
SEC. 2122. DEFINITIONS.
For purposes of this subtitle--
(1) the term `distributed power hybrid system' means a system using 2 or
more distributed power sources, operated together with associated supporting
equipment, including storage equipment, and software necessary to provide
electric power onsite and to an electric distribution system; and
(2) the term `distributed power source' means an independent electric
energy source of usually 10 megawatts or less located close to a
residential, commercial, or industrial load center, including--
(A) reciprocating engines;
(E) solar electric systems;
(H) geothermal power systems; or
(I) combined heat and power systems.
SEC. 2123. STRATEGY.
(a) REQUIREMENT- Not later than 1 year after the date of the enactment of
this Act, the Secretary shall develop and transmit to the Congress a
distributed power hybrid systems strategy showing--
(1) needs best met with distributed power hybrid systems configurations,
especially systems including one or more solar or renewable power sources;
and
(2) technology gaps and barriers (including barriers to efficient
connection with the power grid) that hamper the use of distributed power
hybrid systems.
(b) ELEMENTS- The strategy shall provide for development of--
(1) system integration tools (including databases, computer models,
software, sensors, and controls) needed to plan, design, build, and operate
distributed power hybrid systems for maximum benefits;
(2) tests of distributed power hybrid systems, power parks, and
microgrids, including field tests and cost-shared demonstrations with
industry;
(3) design tools to characterize the benefits of distributed power
hybrid systems for consumers, to reduce testing needs, to speed
commercialization, and to generate data characterizing grid operations,
including interconnection requirements;
(4) precise resource assessment tools to map local resources for
distributed power hybrid systems; and
(5) a comprehensive research, development, demonstration, and commercial
application program to ensure the reliability, efficiency, and environmental
integrity of distributed energy resources, focused on filling gaps in
distributed power hybrid systems technologies identified under subsection
(a)(2), which may include--
(A) integration of a wide variety of advanced technologies into
distributed power hybrid systems;
(B) energy storage devices;
(C) environmental control technologies;
(D) interconnection standards, protocols, and equipment; and
(E) ancillary equipment for dispatch and control.
(c) IMPLEMENTATION AND INTEGRATION- The Secretary shall implement the
strategy transmitted under subsection (a) and the research program under
subsection (b)(5). Activities pursuant to the strategy shall be integrated
with other activities of the Department's Office of Power Technologies.
SEC. 2124. HIGH POWER DENSITY INDUSTRY PROGRAM.
(a) IN GENERAL- The Secretary shall develop and implement a comprehensive
research, development, demonstration, and commercial application program to
improve energy efficiency, reliability, and environmental responsibility in
high power density industries, such as data centers, server farms,
telecommunications facilities, and heavy industry.
(b) AREAS- In carrying out this section, the Secretary shall consider
technologies that provide--
(1) significant improvement in efficiency of high power density
facilities, and in data and telecommunications centers, using advanced
thermal control technologies;
(2) significant improvements in air-conditioning efficiency in
facilities such as data centers and telecommunications facilities;
(3) significant advances in peak load reduction; and
(4) advanced real time metering and load management and control
devices.
(c) IMPLEMENTATION AND INTEGRATION- Activities pursuant to this program
shall be integrated with other activities of the Department's Office of Power
Technologies.
SEC. 2125. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based grants to consortia of
private sector entities for the development of micro-cogeneration energy
technology. The consortia shall explore the creation of small-scale combined
heat and power through the use of residential heating appliances. There are
authorized to be appropriated to the Secretary $20,000,000 to carry out this
section, to remain available until expended.
SEC. 2126. PROGRAM PLAN.
Within 4 months after the date of the enactment of this Act, the
Secretary, in consultation with other appropriate Federal agencies, shall
prepare and transmit to the Congress a 5-year program plan to guide activities
under this subtitle. In preparing the program plan, the Secretary shall
consult with appropriate representatives of the distributed energy resources,
power transmission, and high power density industries to prioritize
appropriate program areas. The Secretary shall also seek the advice of
utilities, energy services providers, manufacturers, institutions of higher
learning, other appropriate State and local agencies, environmental
organizations, professional and technical societies, and any other persons the
Secretary considers appropriate.
SEC. 2127. REPORT.
Two years after date of the enactment of this Act and at 2-year intervals
thereafter, the Secretary, jointly with other appropriate Federal agencies,
shall transmit a report to Congress describing the progress made to achieve
the purposes of this subtitle.
SEC. 2128. VOLUNTARY CONSENSUS STANDARDS.
Not later than 2 years after the date of the enactment of this Act, the
Secretary, in consultation with the National Institute of Standards and
Technology, shall work with the Institute of Electrical and Electronic
Engineers and other standards development organizations toward the development
of voluntary consensus standards for distributed energy systems for use in
manufacturing and using equipment and systems for connection with electric
distribution systems, for obtaining electricity from, or providing electricity
to, such systems.
Subtitle C--Secondary Electric Vehicle Battery Use
SEC. 2131. DEFINITIONS.
For purposes of this subtitle, the term--
(1) `battery' means an energy storage device that previously has been
used to provide motive power in a vehicle powered in whole or in part by
electricity; and
(2) `associated equipment' means equipment located at the location where
the batteries will be used that is necessary to enable the use of the energy
stored in the batteries.
SEC. 2132. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE
PROGRAM.
(a) PROGRAM- The Secretary shall establish and conduct a research,
development, and demonstration program for the secondary use of batteries
where the original use of such batteries was in transportation applications.
Such program shall be--
(1) designed to demonstrate the use of batteries in secondary
application, including utility and commercial power storage and power
quality;
(2) structured to evaluate the performance, including longevity of
useful service life and costs, of such batteries in field operations, and
evaluate the necessary supporting infrastructure, including disposal and
reuse of batteries; and
(3) coordinated with ongoing secondary battery use programs underway at
the national laboratories and in industry.
(b) SOLICITATION- (1) Not later than 6 months after the date of the
enactment of this Act, the Secretary shall solicit proposals to demonstrate
the secondary use of batteries and associated equipment and supporting
infrastructure in geographic locations throughout the United States. The
Secretary may make additional solicitations for proposals if the Secretary
determines that such solicitations are necessary to carry out this section.
(2)(A) Proposals submitted in response to a solicitation under this
section shall include--
(i) a description of the project, including the batteries to be used in
the project, the proposed locations and applications for the batteries, the
number of batteries to be demonstrated, and the type, characteristics, and
estimated life-cycle costs of the batteries compared to other energy storage
devices currently used;
(ii) the contribution, if any, of State or local governments and other
persons to the demonstration project;
(iii) the type of associated equipment to be demonstrated and the type
of supporting infrastructure to be demonstrated; and
(iv) any other information the Secretary considers appropriate.
(B) If the proposal includes a lease arrangement, the proposal shall
indicate the terms of such lease arrangement for the batteries and associated
equipment.
(c) SELECTION OF PROPOSALS- (1)(A) The Secretary shall, not later than 3
months after the closing date established by the Secretary for receipt of
proposals under subsection (b), select at least 5 proposals to receive
financial assistance under this section.
(B) No one project selected under this section shall receive more than 25
percent of the funds authorized under this section. No more than 3 projects
selected under this section shall demonstrate the same battery type.
(2) In selecting a proposal under this section, the Secretary shall
consider--
(A) the ability of the proposer to acquire the batteries and associated
equipment and to successfully manage and conduct the demonstration project,
including the reporting requirements set forth in paragraph (3)(B);
(B) the geographic and climatic diversity of the projects
selected;
(C) the long-term technical and competitive viability of the batteries
to be used in the project and of the original manufacturer of such
batteries;
(D) the suitability of the batteries for their intended uses;
(E) the technical performance of the battery, including the expected
additional useful life and the battery's ability to retain energy;
(F) the environmental effects of the use of and disposal of the
batteries proposed to be used in the project selected;
(G) the extent of involvement of State or local government and other
persons in the demonstration project and whether such involvement
will--
(i) permit a reduction of the Federal cost share per project;
or
(ii) otherwise be used to allow the Federal contribution to be
provided to demonstrate a greater number of batteries; and
(H) such other criteria as the Secretary considers appropriate.
(3) CONDITIONS- The Secretary shall require that--
(A) as a part of a demonstration project, the users of the batteries
provide to the proposer information regarding the operation, maintenance,
performance, and use of the batteries, and the proposer provide such
information to the battery manufacturer, for 3 years after the beginning of
the demonstration project;
(B) the proposer provide to the Secretary such information regarding the
operation, maintenance, performance, and use of the batteries as the
Secretary may request during the period of the demonstration project;
and
(C) the proposer provide at least 50 percent of the costs associated
with the proposal.
SEC. 2133. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary, from amounts
authorized under section 2161(a), for purposes of this subtitle--
(1) $1,000,000 for fiscal year 2002;
(2) $7,000,000 for fiscal year 2003; and
(3) $7,000,000 for fiscal year 2004.
Such appropriations may remain available until expended.
Subtitle D--Green School Buses
SEC. 2141. SHORT TITLE.
This subtitle may be cited as the `Clean Green School Bus Act of 2001'.
SEC. 2142. ESTABLISHMENT OF PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary shall 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 in
lieu 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 in lieu 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 be used to
demonstrate the use only of new alternative fuel school buses or ultra-low
sulfur diesel school buses--
(1) with a gross vehicle weight of greater than 14,000 pounds;
(2) that are powered by a heavy duty engine;
(3) that, in the case of alternative fuel school buses, emit not more
than--
(A) for buses manufactured in model years 2001 and 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) that, in the case of ultra-low sulfur diesel school buses, emit not
more than--
(A) for buses manufactured in model years 2001 through 2003, 3.0 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 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,
except that under no circumstances shall buses be acquired under this
section that emit nonmethane hydrocarbons, oxides of nitrogen, or
particulate matter at a rate greater than the best performing technology of
ultra-low sulfur diesel school buses commercially available at the time the
grant is made.
(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; and
(2) 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.
SEC. 2143. 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 2 units of local government using natural
gas-powered school buses and such private sector fuel cell bus developers to
demonstrate the use of fuel cell-powered school buses.
(b) COST SHARING- The non-Federal contribution for activities funded under
this section shall be not less than--
(1) 20 percent for fuel infrastructure development activities; and
(2) 50 percent for demonstration activities and for development
activities not described in paragraph (1).
(c) FUNDING- No more than $25,000,000 of the amounts authorized under
section 2144 may be used for carrying out this section for the period
encompassing fiscal years 2002 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. 2144. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary for carrying out
this subtitle, to remain available until expended--
(1) $40,000,000 for fiscal year 2002;
(2) $50,000,000 for fiscal year 2003;
(3) $60,000,000 for fiscal year 2004;
(4) $70,000,000 for fiscal year 2005; and
(5) $80,000,000 for fiscal year 2006.
Subtitle E--Next Generation Lighting Initiative
SEC. 2151. SHORT TITLE.
This subtitle may be cited as `Next Generation Lighting Initiative
Act'.
SEC. 2152. DEFINITION.
In this subtitle, the term `Lighting Initiative' means the `Next
Generation Lighting Initiative' established under section 2153(a).
SEC. 2153. NEXT GENERATION LIGHTING INITIATIVE.
(a) ESTABLISHMENT- The Secretary is authorized to establish a lighting
initiative to be known as the `Next Generation Lighting Initiative' to
research, develop, and conduct demonstration activities on advanced lighting
technologies, including white light emitting diodes.
(b) RESEARCH OBJECTIVES- The research objectives of the Lighting
Initiative shall be to develop, by 2011, advanced lighting technologies that,
compared to incandescent and fluorescent lighting technologies as of the date
of the enactment of this Act, are--
(2) more energy-efficient; and
SEC. 2154. STUDY.
(a) IN GENERAL- Not later than 6 months after the date of the enactment of
this Act, the Secretary, in consultation with other Federal agencies, as
appropriate, shall complete a study on strategies for the development and
commercial application of advanced lighting technologies. The Secretary shall
request a review by the National Academies of Sciences and Engineering of the
study under this subsection, and shall transmit the results of the study to
the appropriate congressional committees.
(b) REQUIREMENTS- The study shall--
(1) develop a comprehensive strategy to implement the Lighting
Initiative; and
(2) identify the research and development, manufacturing, deployment,
and marketing barriers that must be overcome to achieve a goal of a 25
percent market penetration by advanced lighting technologies into the
incandescent and fluorescent lighting market by the year 2012.
(c) IMPLEMENTATION- As soon as practicable after the review of the study
under subsection (a) is transmitted to the Secretary by the National Academies
of Sciences and Engineering, the Secretary shall adapt the implementation of
the Lighting Initiative taking into consideration the recommendations of the
National Academies of Sciences and Engineering.
SEC. 2155. GRANT PROGRAM.
(a) IN GENERAL- Subject to section 2603 of this Act, the Secretary may
make merit-based competitive grants to firms and research organizations that
conduct research, development, and demonstration projects related to advanced
lighting technologies.
(1) IN GENERAL- An annual independent review of the grant-related
activities of firms and research organizations receiving a grant under this
section shall be conducted by a committee appointed by the Secretary under
the Federal Advisory Committee Act (5 U.S.C. App.), or, at the request of
the Secretary, a committee appointed by the National Academies of Sciences
and Engineering.
(2) REQUIREMENTS- Using clearly defined standards established by the
Secretary, the review shall assess technology advances and progress toward
commercialization of the grant-related activities of firms or research
organizations during each fiscal year of the grant program.
(c) TECHNICAL AND FINANCIAL ASSISTANCE- The national laboratories and
other Federal agencies, as appropriate, shall cooperate with and provide
technical and financial assistance to firms and research organizations
conducting research, development, and demonstration projects carried out under
this subtitle.
Subtitle F--Department of Energy Authorization of
Appropriations
SEC. 2161. AUTHORIZATION OF APPROPRIATIONS.
(a) OPERATION AND MAINTENANCE- In addition to amounts authorized to be
appropriated under section 2105, section 2125, and section 2144, there are
authorized to be appropriated to the Secretary for subtitle B, subtitle C,
subtitle E, and for Energy Conservation operation and maintenance (including
Building Technology, State and Community Sector (Nongrants), Industry Sector,
Transportation Sector, Power Technologies, and Policy and Management)
$625,000,000 for fiscal year 2002, $700,000,000 for fiscal year 2003, and
$800,000,000 for fiscal year 2004, to remain available until expended.
(b) LIMITS ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Building Technology, State and Community Sector--
(A) Residential Building Energy Codes;
(B) Commercial Building Energy Codes;
(C) Lighting and Appliance Standards;
(D) Weatherization Assistance Program; or
(E) State Energy Program; or
(2) Federal Energy Management Program.
Subtitle G--Environmental Protection Agency Office of Air and Radiation
Authorization of Appropriations
SEC. 2171. SHORT TITLE.
This subtitle may be cited as the `Environmental Protection Agency Office
of Air and Radiation Authorization Act of 2001'.
SEC. 2172. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator for Office of
Air and Radiation Climate Change Protection Programs $121,942,000 for fiscal
year 2002, $126,800,000 for fiscal year 2003, and $131,800,000 for fiscal year
2004 to remain available until expended, of which--
(1) $52,731,000 for fiscal year 2002, $54,800,000 for fiscal year 2003,
and $57,000,000 for fiscal year 2004 shall be for Buildings;
(2) $32,441,000 for fiscal year 2002, $33,700,000 for fiscal year 2003,
and $35,000,000 for fiscal year 2004 shall be for Transportation;
(3) $27,295,000 for fiscal year 2002, $28,400,000 for fiscal year 2003,
and $29,500,000 for fiscal year 2004 shall be for Industry;
(4) $1,700,000 for fiscal year 2002, $1,800,000 for fiscal year 2003,
and $1,900,000 for fiscal year 2004 shall be for Carbon Removal;
(5) $2,500,000 for fiscal year 2002, $2,600,000 for fiscal year 2003,
and $2,700,000 for fiscal year 2004 shall be for State and Local Climate;
and
(6) $5,275,000 for fiscal year 2002, $5,500,000 for fiscal year 2003,
and $5,700,000 for fiscal year 2004 shall be for International Capacity
Building.
SEC. 2173. LIMITS ON USE OF FUNDS.
(a) PRODUCTION OR PROVISION OF ARTICLES OR SERVICES- None of the funds
authorized to be appropriated by this subtitle may be used to produce or
provide articles or services for the purpose of selling the articles or
services to a person outside the Federal Government, unless the Administrator
determines that comparable articles or services are not available from a
commercial source in the United States.
(b) REQUESTS FOR PROPOSALS- None of the funds authorized to be
appropriated by this subtitle may be used by the Environmental Protection
Agency to prepare or initiate Requests for Proposals for a program if the
program has not been authorized by Congress.
SEC. 2174. COST SHARING.
(a) RESEARCH AND DEVELOPMENT- Except as otherwise provided in this
subtitle, for research and development programs carried out under this
subtitle, the Administrator shall require a commitment from non-Federal
sources of at least 20 percent of the cost of the project. The Administrator
may reduce or eliminate the non-Federal requirement under this subsection if
the Administrator determines that the research and development is of a basic
or fundamental nature.
(b) DEMONSTRATION AND COMMERCIAL APPLICATION- Except as otherwise provided
in this subtitle, the Administrator shall require at least 50 percent of the
costs directly and specifically related to any demonstration or commercial
application project under this subtitle to be provided from non-Federal
sources. The Administrator may reduce the non-Federal requirement under this
subsection if the Administrator determines that the reduction is necessary and
appropriate considering the technological risks involved in the project and is
necessary to meet the objectives of this subtitle.
(c) CALCULATION OF AMOUNT- In calculating the amount of the non-Federal
commitment under subsection (a) or (b), the Administrator may include
personnel, services, equipment, and other resources.
SEC. 2175. LIMITATION ON DEMONSTRATION AND COMMERCIAL APPLICATIONS OF ENERGY
TECHNOLOGY.
The Administrator shall provide funding for scientific or energy
demonstration or commercial application of energy technology programs,
projects, or activities of the Office of Air and Radiation only for
technologies or processes that can be reasonably expected to yield new,
measurable benefits to the cost, efficiency, or performance of the technology
or process.
SEC. 2176. REPROGRAMMING.
(a) AUTHORITY- The Administrator may use amounts appropriated under this
subtitle for a program, project, or activity other than the program, project,
or activity for which such amounts were appropriated only if--
(1) the Administrator has transmitted to the appropriate congressional
committees a report described in subsection (b) and a period of 30 days has
elapsed after such committees receive the report;
(2) amounts used for the program, project, or activity do not
exceed--
(A) 105 percent of the amount authorized for the program, project, or
activity; or
(B) $250,000 more than the amount authorized for the program, project,
or activity,
(3) the program, project, or activity has been presented to, or
requested of, the Congress by the Administrator.
(b) REPORT- (1) The report referred to in subsection (a) is a report
containing a full and complete statement of the action proposed to be taken
and the facts and circumstances relied upon in support of the proposed
action.
(2) In the computation of the 30-day period under subsection (a), there
shall be excluded any day on which either House of Congress is not in session
because of an adjournment of more than 3 days to a day certain.
(c) LIMITATIONS- (1) In no event may the total amount of funds obligated
pursuant to this subtitle exceed the total amount authorized to be
appropriated by this subtitle.
(2) Funds appropriated pursuant to this subtitle may not be used for an
item for which Congress has declined to authorize funds.
SEC. 2177. BUDGET REQUEST FORMAT.
The Administrator shall provide to the appropriate congressional
committees, to be transmitted at the same time as the Environmental Protection
Agency's annual budget request submission, a detailed justification for budget
authorization for the programs, projects, and activities for which funds are
authorized by this subtitle. Each such document shall include, for the fiscal
year for which funding is being requested and for the 2 previous fiscal
years--
(1) a description of, and funding requested or allocated for, each such
program, project, or activity;
(2) an identification of all recipients of funds to conduct such
programs, projects, and activities; and
(3) an estimate of the amounts to be expended by each recipient of funds
identified under paragraph (2).
SEC. 2178. OTHER PROVISIONS.
(a) ANNUAL OPERATING PLAN AND REPORTS- The Administrator shall provide
simultaneously to the Committee on Science of the House of
Representatives--
(1) any annual operating plan or other operational funding document,
including any additions or amendments thereto; and
(2) any report relating to the environmental research or development,
scientific or energy research, development, or demonstration, or commercial
application of energy technology programs, projects, or activities of the
Environmental Protection Agency,
provided to any committee of Congress.
(b) NOTICE OF REORGANIZATION- The Administrator shall provide notice to
the appropriate congressional committees not later than 15 days before any
reorganization of any environmental research or development, scientific or
energy research, development, or demonstration, or commercial application of
energy technology program, project, or activity of the Office of Air and
Radiation.
Subtitle H--National Building Performance Initiative
SEC. 2181. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) INTERAGENCY GROUP- Not later than 3 months after the date of the
enactment of this Act, the Director of the Office of Science and Technology
Policy shall establish an Interagency Group responsible for the development
and implementation of a National Building Performance Initiative to address
energy conservation and research and development and related issues. The
National Institute of Standards and Technology shall provide necessary
administrative support for the Interagency Group.
(b) PLAN- Not later than 9 months after the date of the enactment of this
Act, the Interagency Group shall transmit to the Congress a multiyear
implementation plan describing the Federal role in reducing the costs,
including energy costs, of using, owning, and operating commercial,
institutional, residential, and industrial buildings by 30 percent by 2020.
The plan shall include--
(1) research, development, and demonstration of systems and materials
for new construction and retrofit, on the building envelope and components;
and
(2) the collection and dissemination in a usable form of research
results and other pertinent information to the design and construction
industry, government officials, and the general public.
(c) NATIONAL BUILDING PERFORMANCE ADVISORY COMMITTEE- A National Building
Performance Advisory Committee shall be established to advise on creation of
the plan, review progress made under the plan, advise on any improvements that
should be made to the plan, and report to the Congress on actions that have
been taken to advance the Nation's capability in furtherance of the plan. The
members shall include representatives of a broad cross-section of interests
such as the research, technology transfer, architectural, engineering, and
financial communities; materials and systems suppliers; State, county, and
local governments; the residential, multifamily, and commercial sectors of the
construction industry; and the insurance industry.
(d) REPORT- The Interagency Group shall, within 90 days after the end of
each fiscal year, transmit a report to the Congress describing progress
achieved during the preceding fiscal year by government at all levels and by
the private sector, toward implementing the plan developed under subsection
(b), and including any amendments to the plan.
TITLE II--RENEWABLE ENERGY
Subtitle A--Hydrogen
SEC. 2201. SHORT TITLE.
This subtitle may be cited as the `Robert S. Walker and George E. Brown,
Jr. Hydrogen Energy Act of 2001'.
SEC. 2202. PURPOSES.
Section 102(b) of the Spark M. Matsunaga Hydrogen Research, Development,
and Demonstration Act of 1990 is amended to read as follows:
`(b) PURPOSES- The purposes of this Act are--
`(1) to direct the Secretary to conduct research, development, and
demonstration activities leading to the production, storage, transportation,
and use of hydrogen for industrial, commercial, residential, transportation,
and utility applications;
`(2) to direct the Secretary to develop a program of technology
assessment, information dissemination, and education in which Federal,
State, and local agencies, members of the energy, transportation, and other
industries, and other entities may participate; and
`(3) to develop methods of hydrogen production that minimize adverse
environmental impacts, with emphasis on efficient and cost-effective
production from renewable energy resources.'.
SEC. 2203. DEFINITIONS.
Section 102(c) of the Spark M. Matsunaga Hydrogen Research, Development,
and Demonstration Act of 1990 is amended--
(1) by redesignating paragraphs (1) through (3) as paragraphs (2)
through (4), respectively; and
(2) by inserting before paragraph (2), as so redesignated by paragraph
(1) of this section, the following new paragraph:
`(1) `advisory committee' means the advisory committee established under
section 108;'.
SEC. 2204. REPORTS TO CONGRESS.
Section 103 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended to read as follows:
`SEC. 103. REPORTS TO CONGRESS.
`(a) REQUIREMENT- Not later than 1 year after the date of the enactment of
the Robert S. Walker and George E. Brown, Jr. Hydrogen Energy Act of 2001, and
biennially thereafter, the Secretary shall transmit to Congress a detailed
report on the status and progress of the programs and activities authorized
under this Act.
`(b) CONTENTS- A report under subsection (a) shall include, in addition to
any views and recommendations of the Secretary--
`(1) an assessment of the extent to which the program is meeting the
purposes specified in section 102(b);
`(2) a determination of the effectiveness of the technology assessment,
information dissemination, and education program established under section
106;
`(3) an analysis of Federal, State, local, and private sector
hydrogen-related research, development, and demonstration activities to
identify productive areas for increased intergovernmental and private-public
sector collaboration; and
`(4) recommendations of the advisory committee for any improvements
needed in the programs and activities authorized by this Act.'.
SEC. 2205. HYDROGEN RESEARCH AND DEVELOPMENT.
Section 104 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended to read as follows:
`SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.
`(a) ESTABLISHMENT OF PROGRAM- The Secretary shall conduct a hydrogen
research and development program relating to production, storage,
transportation, and use of hydrogen, with the goal of enabling the private
sector to demonstrate the technical feasibility of using hydrogen for
industrial, commercial, residential, transportation, and utility
applications.
`(b) ELEMENTS- In conducting the program authorized by this section, the
Secretary shall--
`(1) give particular attention to developing an understanding and
resolution of critical technical issues preventing the introduction of
hydrogen as an energy carrier into the marketplace;
`(2) initiate or accelerate existing research and development in
critical technical issues that will contribute to the development of more
economical hydrogen production, storage, transportation, and use, including
critical technical issues with respect to production (giving priority to
those production techniques that use renewable energy resources as their
primary source of energy for hydrogen production), liquefaction,
transmission, distribution, storage, and use (including use of hydrogen in
surface transportation); and
`(3) survey private sector and public sector hydrogen research and
development activities worldwide, and take steps to ensure that research and
development activities under this section do not--
`(A) duplicate any available research and development results;
or
`(B) displace or compete with the privately funded hydrogen research
and development activities of United States industry.
`(c) EVALUATION OF TECHNOLOGIES- The Secretary shall evaluate, for the
purpose of determining whether to undertake or fund research and development
activities under this section, any reasonable new or improved technology that
could lead or contribute to the development of economical hydrogen production,
storage, transportation, and use.
`(d) RESEARCH AND DEVELOPMENT SUPPORT- The Secretary is authorized to
arrange for tests and demonstrations and to disseminate to researchers and
developers information, data, and other materials necessary to support the
research and development activities authorized under this section and other
efforts authorized under this Act, consistent with section 106 of this Act.
`(e) COMPETITIVE PEER REVIEW- The Secretary shall carry out or fund
research and development activities under this section only on a competitive
basis using peer review.
`(f) COST SHARING- For research and development programs carried out under
this section, 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.'.
SEC. 2206. DEMONSTRATIONS.
Section 105 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended--
(1) in subsection (a), by striking `, preferably in self-contained
locations,';
(2) in subsection (b), by striking `at self-contained sites' and
inserting `, which shall include a fuel cell bus demonstration program to
address hydrogen production, storage, and use in transit bus applications';
and
(3) in subsection (c), by inserting `NON-FEDERAL FUNDING REQUIREMENT- '
after `(c)'.
SEC. 2207. TECHNOLOGY TRANSFER.
Section 106 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended to read as follows:
`SEC. 106. TECHNOLOGY ASSESSMENT, INFORMATION DISSEMINATION, AND EDUCATION
PROGRAM.
`(a) PROGRAM- The Secretary shall, in consultation with the advisory
committee, conduct a program designed to accelerate wider application of
hydrogen production, storage, transportation, and use technologies, including
application in foreign countries to increase the global market for the
technologies and foster global economic development without harmful
environmental effects.
`(b) INFORMATION- The Secretary, in carrying out the program authorized by
subsection (a), shall--
`(1) undertake an update of the inventory and assessment, required under
section 106(b)(1) of this Act as in effect before the date of the enactment
of the Robert S. Walker and George E. Brown, Jr. Hydrogen Energy Act of
2001, of hydrogen technologies and their commercial capability to
economically produce, store, transport, or use hydrogen in industrial,
commercial, residential, transportation, and utility sector; and
`(2) develop, with other Federal agencies as appropriate and industry,
an information exchange program to improve technology transfer for hydrogen
production, storage, transportation, and use, which may consist of
workshops, publications, conferences, and a database for the use by the
public and private sectors.'.
SEC. 2208. COORDINATION AND CONSULTATION.
Section 107 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended--
(1) by amending paragraph (1) of subsection (a) to read as
follows:
`(1) shall establish a central point for the coordination of all
hydrogen research, development, and demonstration activities of the
Department; and'; and
(2) by amending subsection (c) to read as follows:
`(c) CONSULTATION- The Secretary shall consult with other Federal agencies
as appropriate, and the advisory committee, in carrying out the Secretary's
authorities pursuant to this Act.'.
SEC. 2209. ADVISORY COMMITTEE.
Section 108 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended to read as follows:
`SEC. 108. ADVISORY COMMITTEE.
`(a) ESTABLISHMENT- The Secretary shall enter into appropriate
arrangements with the National Academies of Sciences and Engineering to
establish an advisory committee consisting of experts drawn from domestic
industry, academia, Governmental laboratories, and financial, environmental,
and other organizations, as appropriate, to review and advise on the progress
made through the programs and activities authorized under this Act.
`(b) COOPERATION- The heads of Federal agencies shall cooperate with the
advisory committee in carrying out this section and shall furnish to the
advisory committee such information as the advisory committee reasonably deems
necessary to carry out this section.
`(c) REVIEW- The advisory committee shall review and make any necessary
recommendations to the Secretary on--
`(1) the implementation and conduct of programs and activities
authorized under this Act; and
`(2) the economic, technological, and environmental consequences of the
deployment of hydrogen production, storage, transportation, and use
systems.
`(d) RESPONSIBILITIES OF THE SECRETARY- The Secretary shall consider, but
need not adopt, any recommendations of the advisory committee under subsection
(c). The Secretary shall provide an explanation of the reasons that any such
recommendations will not be implemented and include such explanation in the
report to Congress under section 103(a) of this Act.'.
SEC. 2210. AUTHORIZATION OF APPROPRIATIONS.
Section 109 of the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 is amended to read as follows:
`SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
`(a) RESEARCH AND DEVELOPMENT; ADVISORY COMMITTEE- There are authorized to
be appropriated to the Secretary to carry out sections 104 and 108--
`(1) $40,000,000 for fiscal year 2002;
`(2) $45,000,000 for fiscal year 2003;
`(3) $50,000,000 for fiscal year 2004;
`(4) $55,000,000 for fiscal year 2005; and
`(5) $60,000,000 for fiscal year 2006.
`(b) DEMONSTRATION- There are authorized to be appropriated to the
Secretary to carry out section 105--
`(1) $20,000,000 for fiscal year 2002;
`(2) $25,000,000 for fiscal year 2003;
`(3) $30,000,000 for fiscal year 2004;
`(4) $35,000,000 for fiscal year 2005; and
`(5) $40,000,000 for fiscal year 2006.'.
SEC. 2211. REPEAL.
(a) REPEAL- Title II of the Hydrogen Future Act of 1996 is repealed.
(b) CONFORMING AMENDMENT- Section 2 of the Hydrogen Future Act of 1996 is
amended by striking `titles II and III' and inserting `title III'.
Subtitle B--Bioenergy
SEC. 2221. SHORT TITLE.
This subtitle may be cited as the `Bioenergy Act of 2001'.
SEC. 2222. FINDINGS.
Congress finds that bioenergy has potential to help--
(1) meet the Nation's energy needs;
(2) reduce reliance on imported fuels;
(3) promote rural economic development;
(4) provide for productive utilization of agricultural residues and
waste materials, and forestry residues and byproducts; and
(5) protect the environment.
SEC. 2223. DEFINITIONS.
For purposes of this subtitle--
(1) the term `bioenergy' means energy derived from any organic matter
that is available on a renewable or recurring basis, including agricultural
crops and trees, wood and wood wastes and residues, plants (including
aquatic plants), grasses, residues, fibers, and animal and other organic
wastes;
(2) the term `biofuels' includes liquid or gaseous fuels, industrial
chemicals, or both;
(3) the term `biopower' includes the generation of electricity or
process steam or both; and
(4) the term `integrated bioenergy research and development' includes
biopower and biofuels applications.
SEC. 2224. AUTHORIZATION.
The Secretary is authorized to conduct environmental research and
development, scientific and energy research, development, and demonstration,
and commercial application of energy technology programs, projects, and
activities related to bioenergy, including biopower energy systems, biofuels
energy systems, and integrated bioenergy research and development.
SEC. 2225. AUTHORIZATION OF APPROPRIATIONS.
(a) BIOPOWER ENERGY SYSTEMS- There are authorized to be appropriated to
the Secretary for Biopower Energy Systems programs, projects, and
activities--
(1) $45,700,000 for fiscal year 2002;
(2) $52,500,000 for fiscal year 2003;
(3) $60,300,000 for fiscal year 2004;
(4) $69,300,000 for fiscal year 2005; and
(5) $79,600,000 for fiscal year 2006.
(b) BIOFUELS ENERGY SYSTEMS- There are authorized to be appropriated to
the Secretary for biofuels energy systems programs, projects, and
activities--
(1) $53,500,000 for fiscal year 2002;
(2) $61,400,000 for fiscal year 2003;
(3) $70,600,000 for fiscal year 2004;
(4) $81,100,000 for fiscal year 2005; and
(5) $93,200,000 for fiscal year 2006.
(c) INTEGRATED BIOENERGY RESEARCH AND DEVELOPMENT- There are authorized to
be appropriated to the Secretary for integrated bioenergy research and
development programs, projects, and activities, $49,000,000 for each of the
fiscal years 2002 through 2006. Activities funded under this subsection shall
be coordinated with ongoing related programs of other Federal agencies,
including the Plant Genome Program of the National Science Foundation. Of the
funds authorized under this subsection, at least $5,000,000 for each fiscal
year shall be for training and education targeted to minority and social
disadvantaged farmers and ranchers.
(d) INTEGRATED APPLICATIONS- Amounts authorized to be appropriated under
this subtitle may be used to assist in the planning, design, and
implementation of projects to convert rice straw and barley grain into
biopower or biofuels.
Subtitle C--Transmission Infrastructure Systems
SEC. 2241. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, DEVELOPMENT,
DEMONSTRATION, AND COMMERCIAL APPLICATION.
(a) IN GENERAL- The Secretary shall develop and implement a comprehensive
research, development, demonstration, and commercial application program to
ensure the reliability, efficiency, and environmental integrity of electrical
transmission systems. Such program shall include advanced energy technologies
and systems, high capacity superconducting transmission lines and generators,
advanced grid reliability and efficiency technologies development,
technologies contributing to significant load reductions, advanced metering,
load management and control technologies, and technology transfer and
education.
(b) TECHNOLOGY- In carrying out this subtitle, the Secretary may include
research, development, and demonstration on and commercial application of
improved transmission technologies including the integration of the following
technologies into improved transmission systems:
(1) High temperature superconductivity.
(2) Advanced transmission materials.
(3) Self-adjusting equipment, processes, or software for survivability,
security, and failure containment.
(4) Enhancements of energy transfer over existing lines.
(5) Any other infrastructure technologies, as appropriate.
SEC. 2242. PROGRAM PLAN.
Within 4 months after the date of the enactment of this Act, the
Secretary, in consultation with other appropriate Federal agencies, shall
prepare and transmit to Congress a 5-year program plan to guide activities
under this subtitle. In preparing the program plan, the Secretary shall
consult with appropriate representatives of the transmission infrastructure
systems industry to select and prioritize appropriate program areas. The
Secretary shall also seek the advice of utilities, energy services providers,
manufacturers, institutions of higher learning, other appropriate State and
local agencies, environmental organizations, professional and technical
societies, and any other persons as the Secretary considers appropriate.
SEC. 2243. REPORT.
Two years after the date of the enactment of this Act, and at 2-year
intervals thereafter, the Secretary, in consultation with other appropriate
Federal agencies, shall transmit a report to Congress describing the progress
made to achieve the purposes of this subtitle and identifying any additional
resources needed to continue the development and commercial application of
transmission infrastructure technologies.
Subtitle D--Department of Energy Authorization of
Appropriations
SEC. 2261. AUTHORIZATION OF APPROPRIATIONS.
(a) OPERATION AND MAINTENANCE- There are authorized to be appropriated to
the Secretary for Renewable Energy operation and maintenance, including
activities under subtitle C, Geothermal Technology Development, Hydropower,
Concentrating Solar Power, Photovoltaic Energy Systems, Solar Building
Technology Research, Wind Energy Systems, High Temperature Superconducting
Research and Development, Energy Storage Systems, Transmission Reliability,
International Renewable Energy Program, Renewable Energy Production Incentive
Program, Renewable Program Support, National Renewable Energy Laboratory, and
Program Direction, and including amounts authorized under the amendment made
by section 2210 and amounts authorized under section 2225, $535,000,000 for
fiscal year 2002, $639,000,000 for fiscal year 2003, and $683,000,000 for
fiscal year 2004, to remain available until expended.
(b) WAVE POWERED ELECTRIC GENERATION- Within the amounts authorized to be
appropriated to the Secretary under subsection (a), the Secretary shall carry
out a research program, in conjunction with other appropriate Federal
agencies, on wave powered electric generation.
(c) ASSESSMENT OF RENEWABLE ENERGY RESOURCES-
(1) IN GENERAL- Using funds authorized in subsection (a), of this
section, the Secretary shall transmit to the Congress, within 1 year after
the date of the enactment of this Act, an assessment of all renewable energy
resources available within the United States.
(2) RESOURCE ASSESSMENT- Such report shall include a detailed inventory
describing the available amount and characteristics of solar, wind, biomass,
geothermal, hydroelectric, and other renewable energy sources, and an
estimate of the costs needed to develop each resource. The report shall also
include such other information as the Secretary believes would be useful in
siting renewable energy generation, such as appropriate terrain, population
and load centers, nearby energy infrastructure, and location of energy
resources.
(3) AVAILABILITY- The information and cost estimates in this report
shall be updated annually and made available to the public, along with the
data used to create the report.
(4) SUNSET- This subsection shall expire at the end of fiscal year
2004.
(d) LIMITS ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Departmental Energy Management Program; or
(2) Renewable Indian Energy Resources.
TITLE III--NUCLEAR ENERGY
Subtitle A--University Nuclear Science and Engineering
SEC. 2301. SHORT TITLE.
This subtitle may be cited as `Department of Energy University Nuclear
Science and Engineering Act'.
SEC. 2302. FINDINGS.
The Congress finds the following:
(1) United States university nuclear science and engineering programs
are in a state of serious decline, with nuclear engineering enrollment at a
35-year low. Since 1980, the number of nuclear engineering university
programs has declined nearly 40 percent, and over two-thirds of the faculty
in these programs are 45 years of age or older. Also, since 1980, the number
of university research and training reactors in the United States has
declined by over 50 percent. Most of these reactors were built in the late
1950s and 1960s with 30-year to 40-year operating licenses, and many will
require relicensing in the next several years.
(2) A decline in a competent nuclear workforce, and the lack of
adequately trained nuclear scientists and engineers, will affect the ability
of the United States to solve future nuclear waste storage issues, operate
existing and design future fission reactors in the United States, respond to
future nuclear events worldwide, help stem the proliferation of nuclear
weapons, and design and operate naval nuclear reactors.
(3) The Department of Energy's Office of Nuclear Energy, Science and
Technology, a principal Federal agency for civilian research in nuclear
science and engineering, is well suited to help maintain tomorrow's human
resource and training investment in the nuclear sciences and
engineering.
SEC. 2303. DEPARTMENT OF ENERGY PROGRAM.
(a) ESTABLISHMENT- The Secretary, through the Office of Nuclear Energy,
Science and Technology, shall support a program to maintain the Nation's human
resource investment and infrastructure in the nuclear sciences and engineering
consistent with the Department's statutory authorities related to civilian
nuclear research, development, and demonstration and commercial application of
energy technology.
(b) DUTIES OF THE OFFICE OF NUCLEAR ENERGY, SCIENCE AND TECHNOLOGY- In
carrying out the program under this subtitle, the Director of the Office of
Nuclear Energy, Science and Technology shall--
(1) develop a robust 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) maintain a robust investment in the fundamental nuclear sciences and
engineering through the Nuclear Engineering Education Research
Program;
(4) encourage collaborative nuclear research among industry, national
laboratories, and universities through the Nuclear Energy Research
Initiative;
(5) assist universities in maintaining reactor infrastructure; and
(6) support communication and outreach related to nuclear science and
engineering.
(c) MAINTAINING UNIVERSITY RESEARCH AND TRAINING REACTORS AND ASSOCIATED
INFRASTRUCTURE- The Secretary, through the Office of Nuclear Energy, Science
and Technology, shall provide for the following university research and
training reactor infrastructure maintenance and research activities:
(1) Refueling of university research reactors with low enriched fuels,
upgrade of operational instrumentation, and sharing of reactors among
universities.
(2) In collaboration with the United States nuclear industry,
assistance, where necessary, in relicensing and upgrading university
training reactors as part of a student training program.
(3) A university reactor research and training award program that
provides for reactor improvements as part of a focused effort that
emphasizes research, training, and education.
(d) UNIVERSITY-DOE LABORATORY INTERACTIONS- The Secretary, through the
Office of Nuclear Energy, Science and Technology, shall develop--
(1) a sabbatical fellowship program for university faculty to spend
extended periods of time at Department of Energy laboratories in the areas
of nuclear science and technology; and
(2) a visiting scientist program in which laboratory staff can spend
time in academic nuclear science and engineering departments.
The Secretary may under subsection (b)(1) provide for fellowships for
students to spend time at Department of Energy laboratories in the areas of
nuclear science and technology under the mentorship of laboratory staff.
(e) OPERATIONS AND MAINTENANCE- To the extent that the use of a university
research reactor is funded under this subtitle, funds authorized under this
subtitle may be used to supplement operation of the research reactor during
the investigator's proposed effort. The host institution shall provide at
least 50 percent of the cost of the reactor's operation.
(f) MERIT REVIEW REQUIRED- All grants, contracts, cooperative agreements,
or other financial assistance awards under this subtitle shall be made only
after independent merit review.
(g) REPORT- Not later than 6 months after the date of the enactment of
this Act, the Secretary shall prepare and transmit to the appropriate
congressional committees a 5-year plan on how the programs authorized in this
subtitle will be implemented. The plan shall include a review of the projected
personnel needs in the fields of nuclear science and engineering and of the
scope of nuclear science and engineering education programs at the Department
and other Federal agencies.
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS.
(a) TOTAL AUTHORIZATION- The following sums are authorized to be
appropriated to the Secretary, to remain available until expended, for the
purposes of carrying out this subtitle:
(1) $30,200,000 for fiscal year 2002.
(2) $41,000,000 for fiscal year 2003.
(3) $47,900,000 for fiscal year 2004.
(4) $55,600,000 for fiscal year 2005.
(5) $64,100,000 for fiscal year 2006.
(b) GRADUATE AND UNDERGRADUATE FELLOWSHIPS- Of the funds authorized by
subsection (a), the following sums are authorized to be appropriated to carry
out section 2303(b)(1):
(1) $3,000,000 for fiscal year 2002.
(2) $3,100,000 for fiscal year 2003.
(3) $3,200,000 for fiscal year 2004.
(4) $3,200,000 for fiscal year 2005.
(5) $3,200,000 for fiscal year 2006.
(c) JUNIOR FACULTY RESEARCH INITIATION GRANT PROGRAM- Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(b)(2):
(1) $5,000,000 for fiscal year 2002.
(2) $7,000,000 for fiscal year 2003.
(3) $8,000,000 for fiscal year 2004.
(4) $9,000,000 for fiscal year 2005.
(5) $10,000,000 for fiscal year 2006.
(d) NUCLEAR ENGINEERING EDUCATION RESEARCH PROGRAM- Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(b)(3):
(1) $8,000,000 for fiscal year 2002.
(2) $12,000,000 for fiscal year 2003.
(3) $13,000,000 for fiscal year 2004.
(4) $15,000,000 for fiscal year 2005.
(5) $20,000,000 for fiscal year 2006.
(e) COMMUNICATION AND OUTREACH RELATED TO NUCLEAR SCIENCE AND ENGINEERING-
Of the funds authorized by subsection (a), the following sums are authorized
to be appropriated to carry out section 2303(b)(5):
(1) $200,000 for fiscal year 2002.
(2) $200,000 for fiscal year 2003.
(3) $300,000 for fiscal year 2004.
(4) $300,000 for fiscal year 2005.
(5) $300,000 for fiscal year 2006.
(f) REFUELING OF UNIVERSITY RESEARCH REACTORS AND INSTRUMENTATION
UPGRADES- Of the funds authorized by subsection (a), the following sums are
authorized to be appropriated to carry out section 2303(c)(1):
(1) $6,000,000 for fiscal year 2002.
(2) $6,500,000 for fiscal year 2003.
(3) $7,000,000 for fiscal year 2004.
(4) $7,500,000 for fiscal year 2005.
(5) $8,000,000 for fiscal year 2006.
(g) RELICENSING ASSISTANCE- Of the funds authorized by subsection (a), the
following sums are authorized to be appropriated to carry out section
2303(c)(2):
(1) $1,000,000 for fiscal year 2002.
(2) $1,100,000 for fiscal year 2003.
(3) $1,200,000 for fiscal year 2004.
(4) $1,300,000 for fiscal year 2005.
(5) $1,300,000 for fiscal year 2006.
(h) REACTOR RESEARCH AND TRAINING AWARD PROGRAM- Of the funds authorized
by subsection (a), the following sums are authorized to be appropriated to
carry out section 2303(c)(3):
(1) $6,000,000 for fiscal year 2002.
(2) $10,000,000 for fiscal year 2003.
(3) $14,000,000 for fiscal year 2004.
(4) $18,000,000 for fiscal year 2005.
(5) $20,000,000 for fiscal year 2006.
(i) UNIVERSITY-DOE LABORATORY INTERACTIONS- Of the funds authorized by
subsection (a), the following sums are authorized to be appropriated to carry
out section 2303(d):
(1) $1,000,000 for fiscal year 2002.
(2) $1,100,000 for fiscal year 2003.
(3) $1,200,000 for fiscal year 2004.
(4) $1,300,000 for fiscal year 2005.
(5) $1,300,000 for fiscal year 2006.
Subtitle B--Advanced Fuel Recycling Technology Research and Development
Program
SEC. 2321. PROGRAM.
(a) IN GENERAL- The Secretary, through the Director of the Office of
Nuclear Energy, Science and Technology, shall conduct an advanced fuel
recycling technology research and development program to further the
availability of proliferation-resistant fuel recycling technologies as an
alternative to aqueous reprocessing in support of evaluation of alternative
national strategies for spent nuclear fuel and the Generation IV advanced
reactor concepts, subject to annual review by the Secretary's Nuclear Energy
Research Advisory Committee or other independent entity, as appropriate.
(b) REPORTS- The Secretary shall report on the activities of the advanced
fuel recycling technology research and development program, as part of the
Department's annual budget submission.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $10,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and fiscal year
2004.
Subtitle C--Department of Energy Authorization of
Appropriations
SEC. 2341. NUCLEAR ENERGY RESEARCH INITIATIVE.
(a) PROGRAM- The Secretary, through the Office of Nuclear Energy, Science
and Technology, shall conduct a Nuclear Energy Research Initiative for grants
to be competitively awarded and subject to peer review for research relating
to nuclear energy.
(b) OBJECTIVES- The program shall be directed toward accomplishing the
objectives of--
(1) developing advanced concepts and scientific breakthroughs in nuclear
fission and reactor technology to address and overcome the principal
technical and scientific obstacles to the expanded use of nuclear energy in
the United States;
(2) advancing the state of nuclear technology to maintain a competitive
position in foreign markets and a future domestic market;
(3) promoting and maintaining a United States nuclear science and
engineering infrastructure to meet future technical challenges;
(4) providing an effective means to collaborate on a cost-shared basis
with international agencies and research organizations to address and
influence nuclear technology development worldwide; and
(5) promoting United States leadership and partnerships in bilateral and
multilateral nuclear energy research.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $60,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and fiscal year
2004.
SEC. 2342. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.
(a) PROGRAM- The Secretary, through the Office of Nuclear Energy, Science
and Technology, shall conduct a Nuclear Energy Plant Optimization research and
development program jointly with industry and cost-shared by industry by at
least 50 percent and subject to annual review by the Secretary's Nuclear
Energy Research Advisory Committee or other independent entity, as
appropriate.
(b) OBJECTIVES- The program shall be directed toward accomplishing the
objectives of--
(1) managing long-term effects of component aging; and
(2) improving the efficiency and productivity of existing nuclear power
stations.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $15,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal years 2003 and 2004.
SEC. 2343. NUCLEAR ENERGY TECHNOLOGIES.
(a) IN GENERAL- The Secretary, through the Office of Nuclear Energy,
Science and Technology, shall 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 application.
(b) REACTOR CHARACTERISTICS- To the extent practicable, in conducting the
study under subsection (a), the Secretary shall study nuclear energy systems
that offer the highest probability of achieving the goals for Generation IV
nuclear energy systems, including--
(1) economics competitive with any other generators;
(2) enhanced safety features, including passive safety features;
(3) substantially reduced production of high-level waste, as compared
with the quantity of waste produced by reactors in operation on the date of
the enactment of this Act;
(4) highly proliferation-resistant fuel and waste;
(5) sustainable energy generation including optimized fuel utilization;
and
(6) substantially improved thermal efficiency, as compared with the
thermal efficiency of reactors in operation on the date of the enactment of
this Act.
(c) CONSULTATION- In conducting the study under subsection (a), the
Secretary shall consult with appropriate representatives of industry,
institutions of higher education, Federal agencies, and international,
professional, and technical organizations.
(1) IN GENERAL- Not later than December 31, 2002, the Secretary shall
transmit to the appropriate congressional committees a report describing the
activities of the Secretary under this section, and plans for research and
development leading to a public/private cooperative demonstration of one or
more Generation IV nuclear energy systems.
(2) CONTENTS- The report shall contain--
(A) an assessment of all available technologies;
(B) a summary of actions needed for the most promising candidates to
be considered as viable commercial options within the five to ten years
after the date of the report, with consideration of regulatory, economic,
and technical issues;
(C) a recommendation of not more than three promising Generation IV
nuclear energy system concepts for further development;
(D) an evaluation of opportunities for public/private
partnerships;
(E) a recommendation for structure of a public/private partnership to
share in development and construction costs;
(F) a plan leading to the selection and conceptual design, by
September 30, 2004, of at least one Generation IV nuclear energy system
concept recommended under subparagraph (C) for demonstration through a
public/private partnership;
(G) an evaluation of opportunities for siting demonstration facilities
on Department of Energy land; and
(H) a recommendation for appropriate involvement of other Federal
agencies.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out this section and to carry out the
recommendations in the report transmitted under subsection (d)--
(1) $20,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and fiscal year
2004.
SEC. 2344. AUTHORIZATION OF APPROPRIATIONS.
(a) OPERATION AND MAINTENANCE- There are authorized to be appropriated to
the Secretary to carry out activities authorized under this title for nuclear
energy operation and maintenance, including amounts authorized under sections
2304(a), 2321(c), 2341(c), 2342(c), and 2343(e), and including Advanced
Radioisotope Power Systems, Test Reactor Landlord, and Program Direction,
$191,200,000 for fiscal year 2002, $199,000,000 for fiscal year 2003, and
$207,000,000 for fiscal year 2004, to remain available until expended.
(b) CONSTRUCTION- There are authorized to be appropriated to the
Secretary--
(1) $950,000 for fiscal year 2002, $2,200,000 for fiscal year 2003,
$1,246,000 for fiscal year 2004, and $1,699,000 for fiscal year 2005 for
completion of construction of Project 99-E-200, Test Reactor Area Electric
Utility Upgrade, Idaho National Engineering and Environmental Laboratory;
and
(2) $500,000 for fiscal year 2002, $500,000 for fiscal year 2003,
$500,000 for fiscal year 2004, and $500,000 for fiscal year 2005, for
completion of construction of Project 95-E-201, Test Reactor Area Fire and
Life Safety Improvements, Idaho National Engineering and Environmental
Laboratory.
(c) LIMITS ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Nuclear Energy Isotope Support and Production;
(2) Argonne National Laboratory-West Operations;
(3) Fast Flux Test Facility; or
(4) Nuclear Facilities Management.
TITLE IV--FOSSIL ENERGY
Subtitle A--Coal
SEC. 2401. COAL AND RELATED TECHNOLOGIES PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary $172,000,000 for fiscal year 2002, $179,000,000
for fiscal year 2003, and $186,000,000 for fiscal year 2004, to remain
available until expended, for other coal and related technologies research and
development programs, which shall include--
(1) Innovations for Existing Plants;
(2) Integrated Gasification Combined Cycle;
(3) advanced combustion systems;
(5) Sequestration Research and Development;
(6) innovative technologies for demonstration;
(7) Transportation Fuels and Chemicals;
(8) Solid Fuels and Feedstocks;
(9) Advanced Fuels Research; and
(b) LIMIT ON USE OF FUNDS- Notwithstanding subsection (a), no funds may be
used to carry out the activities authorized by this section after September
30, 2002, unless the Secretary has transmitted to the Congress the report
required by this subsection and 1 month has elapsed since that transmission.
The report shall include a plan containing--
(1) a detailed description of how proposals will be solicited and
evaluated, including a list of all activities expected to be
undertaken;
(2) a detailed list of technical milestones for each coal and related
technology that will be pursued;
(3) a description of how the programs authorized in this section will be
carried out so as to complement and not duplicate activities authorized
under division E.
(c) GASIFICATION- The Secretary shall fund at least one gasification
project with the funds authorized under this section.
Subtitle B--Oil and Gas
SEC. 2421. PETROLEUM-OIL TECHNOLOGY.
The Secretary shall conduct a program of research, development,
demonstration, and commercial application on petroleum-oil technology. The
program shall address--
(1) Exploration and Production Supporting Research;
(2) Oil Technology Reservoir Management/Extension; and
(3) Effective Environmental Protection.
SEC. 2422. GAS.
The Secretary shall conduct a program of research, development,
demonstration, and commercial application on natural gas technologies. The
program shall address--
(1) Exploration and Production;
(3) Effective Environmental Protection.
SEC. 2423. NATURAL GAS AND OIL DEPOSITS REPORT.
Two years after the date of the enactment of this Act, and at 2-year
intervals thereafter, the Secretary of the Interior, in consultation with
other appropriate Federal agencies, shall transmit a report to the Congress
assessing the contents of natural gas and oil deposits at existing drilling
sites off the coast of Louisiana and Texas.
SEC. 2424. OIL SHALE RESEARCH.
There are authorized to be appropriated to the Secretary of Energy for
fiscal year 2002 $10,000,000, to be divided equally between grants for
research on Eastern oil shale and grants for research on Western oil shale.
Subtitle C--Ultra-Deepwater and Unconventional Drilling
SEC. 2441. SHORT TITLE.
This subtitle may be cited as the `Natural Gas and Other Petroleum
Research, Development, and Demonstration Act of 2001'.
SEC. 2442. DEFINITIONS.
For purposes of this subtitle--
(1) the term `deepwater' means water depths greater than 200 meters but
less than 1,500 meters;
(2) the term `Fund' means the Ultra-Deepwater and Unconventional Gas
Research Fund established under section 2450;
(3) the term `institution of higher education' has the meaning given
that term in section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001);
(4) the term `Research Organization' means the Research Organization
created pursuant to section 2446(a);
(5) the term `ultra-deepwater' means water depths greater than 1,500
meters; and
(6) the term `unconventional' means located in heretofore inaccessible
or uneconomic formations on land.
SEC. 2443. ULTRA-DEEPWATER PROGRAM.
The Secretary shall establish a program of research, development, and
demonstration of ultra-deepwater natural gas and other petroleum exploration
and production technologies, in areas currently available for Outer
Continental Shelf leasing. The program shall be carried out by the Research
Organization as provided in this subtitle.
SEC. 2444. NATIONAL ENERGY TECHNOLOGY LABORATORY.
The National Energy Technology Laboratory and the United States Geological
Survey, when appropriate, shall carry out programs of long-term research into
new natural gas and other petroleum exploration and production technologies
and environmental mitigation technologies for production from unconventional
and ultra-deepwater resources, including methane hydrates. Such Laboratory
shall also conduct a program of research, development, and demonstration of
new technologies for the reduction of greenhouse gas emissions from
unconventional and ultra-deepwater natural gas or other petroleum exploration
and production activities, including sub-sea floor carbon sequestration
technologies.
SEC. 2445. ADVISORY COMMITTEE.
(a) ESTABLISHMENT- The Secretary shall, within 3 months after the date of
the enactment of this Act, establish an Advisory Committee consisting of 7
members, each having extensive operational knowledge of and experience in the
natural gas and other petroleum exploration and production industry who are
not Federal Government employees or contractors. A minimum of 4 members shall
have extensive knowledge of ultra-deepwater natural gas or other petroleum
exploration and production technologies, a minimum of 2 members shall have
extensive knowledge of unconventional natural gas or other petroleum
exploration and production technologies, and at least 1 member shall have
extensive knowledge of greenhouse gas emission reduction technologies,
including carbon sequestration.
(b) FUNCTION- The Advisory Committee shall advise the Secretary on the
selection of an organization to create the Research Organization and on the
implementation of this subtitle.
(c) COMPENSATION- Members 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.
(d) ADMINISTRATIVE COSTS- The costs of activities carried out by the
Secretary and the Advisory Committee under this subtitle shall be paid or
reimbursed from the Fund.
(e) DURATION OF ADVISORY COMMITTEE- Section 14 of the Federal Advisory
Committee Act shall not apply to the Advisory Committee.
SEC. 2446. RESEARCH ORGANIZATION.
(a) SELECTION OF RESEARCH ORGANIZATION- The Secretary, within 6 months
after the date of the enactment of this Act, shall solicit proposals from
eligible entities for the creation of the Research Organization, and within 3
months after such solicitation, shall select an entity to create the Research
Organization.
(b) ELIGIBLE ENTITIES- Entities eligible to create the Research
Organization shall--
(1) have been in existence as of the date of the enactment of this
Act;
(2) be entities exempt from tax under section 501(c)(3) of the Internal
Revenue Code of 1986; and
(3) be experienced in planning and managing programs in natural gas or
other petroleum exploration and production research, development, and
demonstration.
(c) PROPOSALS- A proposal from an entity seeking to create the Research
Organization shall include a detailed description of the proposed membership
and structure of the Research Organization.
(d) FUNCTIONS- The Research Organization shall--
(1) award grants on a competitive basis to qualified--
(A) research institutions;
(B) institutions of higher education;
(D) consortia formed among institutions and companies described in
subparagraphs (A) through (C) for the purpose of conducting research,
development, and demonstration of unconventional and ultra-deepwater
natural gas or other petroleum exploration and production technologies;
and
(2) review activities under those grants to ensure that they comply with
the requirements of this subtitle and serve the purposes for which the grant
was made.
SEC. 2447. GRANTS.
(1) UNCONVENTIONAL- The Research Organization shall award grants for
research, development, and demonstration of technologies to maximize the
value of the Government's natural gas and other petroleum resources in
unconventional reservoirs, and to develop technologies to increase the
supply of natural gas and other petroleum resources by lowering the cost and
improving the efficiency of exploration and production of unconventional
reservoirs, while improving safety and minimizing environmental
impacts.
(2) ULTRA-DEEPWATER- The Research Organization shall award grants for
research, development, and demonstration of natural gas or other petroleum
exploration and production technologies to--
(A) maximize the value of the Federal Government's natural gas and
other petroleum resources in the ultra-deepwater areas;
(B) increase the supply of natural gas and other petroleum resources
by lowering the cost and improving the efficiency of exploration and
production of ultra-deepwater reservoirs; and
(C) improve safety and minimize the environmental impacts of
ultra-deepwater developments.
(3) ULTRA-DEEPWATER ARCHITECTURE- The Research Organization shall award
a grant to one or more consortia described in section 2446(d)(1)(D) for the
purpose of developing and demonstrating the next generation architecture for
ultra-deepwater production of natural gas and other petroleum in furtherance
of the purposes stated in paragraph (2)(A) through (C).
(b) CONDITIONS FOR GRANTS- Grants provided under this section shall
contain the following conditions:
(1) If the grant recipient consists of more than one entity, the
recipient shall provide a signed contract agreed to by all participating
members clearly defining all rights to intellectual property for existing
technology and for future inventions conceived and developed using funds
provided under the grant, in a manner that is consistent with applicable
laws.
(2) There shall be a repayment schedule for Federal dollars provided for
demonstration projects under the grant in the event of a successful
commercialization of the demonstrated technology. Such repayment schedule
shall provide that the payments are made to the Secretary with the express
intent that these payments not impede the adoption of the demonstrated
technology in the marketplace. In the event that such impedance occurs due
to market forces or other factors, the Research Organization shall
renegotiate the grant agreement so that the acceptance of the technology in
the marketplace is enabled.
(3) Applications for grants for demonstration projects shall clearly
state the intended commercial applications of the technology
demonstrated.
(4) The total amount of funds made available under a grant provided
under subsection (a)(3) shall not exceed 50 percent of the total cost of the
activities for which the grant is provided.
(5) The total amount of funds made available under a grant provided
under subsection (a)(1) or (2) shall not exceed 50 percent of the total cost
of the activities covered by the grant, except that the Research
Organization may elect to provide grants covering a higher percentage, not
to exceed 90 percent, of total project costs in the case of grants made
solely to independent producers.
(6) An appropriate amount of funds provided under a grant shall be used
for the broad dissemination of technologies developed under the grant to
interested institutions of higher education, industry, and appropriate
Federal and State technology entities to ensure the greatest possible
benefits for the public and use of government resources.
(7) Demonstrations of ultra-deepwater technologies for which funds are
provided under a grant may be conducted in ultra-deepwater or deepwater
locations.
(c) ALLOCATION OF FUNDS- Funds available for grants under this subtitle
shall be allocated as follows:
(1) 15 percent shall be for grants under subsection (a)(1).
(2) 15 percent shall be for grants under subsection (a)(2).
(3) 60 percent shall be for grants under subsection (a)(3).
(4) 10 percent shall be for carrying out section 2444.
SEC. 2448. PLAN AND FUNDING.
(a) TRANSMITTAL TO SECRETARY- The Research Organization shall transmit to
the Secretary an annual plan proposing projects and funding of activities
under each paragraph of section 2447(a).
(b) REVIEW- The Secretary shall have 1 month to review the annual plan,
and shall approve the plan, if it is consistent with this subtitle. If the
Secretary approves the plan, the Secretary shall provide funding as proposed
in the plan.
(c) DISAPPROVAL- If the Secretary does not approve the plan, the Secretary
shall notify the Research Organization of the reasons for disapproval and
shall withhold funding until a new plan is submitted which the Secretary
approves. Within 1 month after notifying the Research Organization of a
disapproval, the Secretary shall notify the appropriate congressional
committees of the disapproval.
SEC. 2449. AUDIT.
The Secretary shall retain an independent, commercial auditor to determine
the extent to which the funds authorized by this subtitle have been expended
in a manner consistent with the purposes of this subtitle. The auditor shall
transmit a report annually to the Secretary, who shall transmit the report to
the appropriate congressional committees, along with a plan to remedy any
deficiencies cited in the report.
SEC. 2450. FUND.
(a) ESTABLISHMENT- There is established in the Treasury of the United
States a fund to be known as the `Ultra-Deepwater and Unconventional Gas
Research Fund' which shall be available for obligation to the extent provided
in advance in appropriations Acts for allocation under section 2447(c).
(1) LOANS FROM TREASURY- There are authorized to be appropriated to the
Secretary $900,000,000 for the period encompassing fiscal years 2002 through
2009. Such amounts shall be deposited by the Secretary in the Fund, and
shall be considered loans from the Treasury. Income received by the United
States in connection with any ultra-deepwater oil and gas leases shall be
deposited in the Treasury and considered as repayment for the loans under
this paragraph.
(2) ADDITIONAL APPROPRIATIONS- There are authorized to be appropriated
to the Secretary such sums as may be necessary for the fiscal years 2002
through 2009, to be deposited in the Fund.
(3) OIL AND GAS LEASE INCOME- To the extent provided in advance in
appropriations Acts, not more than 7.5 percent of the income of the United
States from Federal oil and gas leases may be deposited in the Fund for
fiscal years 2002 through 2009.
SEC. 2451. SUNSET.
No funds are authorized to be appropriated for carrying out this subtitle
after fiscal year 2009. The Research Organization shall be terminated when it
has expended all funds made available pursuant to this subtitle.
Subtitle D--Fuel Cells
SEC. 2461. FUEL CELLS.
(a) IN GENERAL- The Secretary shall conduct a program of research,
development, demonstration, and commercial application on fuel cells. The
program shall address--
(3) Vision 21-Hybrids; and
(b) MANUFACTURING PRODUCTION AND PROCESSES- In addition to the program
under subsection (a), the Secretary, in consultation other Federal agencies,
as appropriate, shall establish a program for the demonstration of fuel cell
technologies, including fuel cell proton exchange membrane technology, for
commercial, residential, and transportation applications. The program shall
specifically focus on promoting the application of and improved manufacturing
production and processes for fuel cell technologies.
(c) AUTHORIZATION OF APPROPRIATIONS- Within the amounts authorized to be
appropriated under section 2481(a), there are authorized to be appropriated to
the Secretary for the purpose of carrying out subsection (b), $28,000,000 for
each of fiscal years 2002 through 2004.
Subtitle E--Department of Energy Authorization of
Appropriations
SEC. 2481. AUTHORIZATION OF APPROPRIATIONS.
(a) OPERATION AND MAINTENANCE- There are authorized to be appropriated to
the Secretary for operation and maintenance for subtitle B and subtitle D, and
for Fossil Energy Research and Development Headquarters Program Direction,
Field Program Direction, Plant and Capital Equipment, Cooperative Research and
Development, Import/Export Authorization, and Advanced Metallurgical Processes
$282,000,000 for fiscal year 2002, $293,000,000 for fiscal year 2003, and
$305,000,000 for fiscal year 2004, to remain available until expended.
(b) LIMITS ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (a) may be used for--
(2) Fossil Energy Environmental Restoration; or
(3) research, development, demonstration, and commercial application on
coal and related technologies, including activities under subtitle A.
TITLE V--SCIENCE
Subtitle A--Fusion Energy Sciences
SEC. 2501. SHORT TITLE.
This subtitle may be cited as the `Fusion Energy Sciences Act of 2001'.
SEC. 2502. FINDINGS.
The Congress finds that--
(1) economic prosperity is closely linked to an affordable and ample
energy supply;
(2) environmental quality is closely linked to energy production and
use;
(3) population, worldwide economic development, energy consumption, and
stress on the environment are all expected to increase substantially in the
coming decades;
(4) the few energy options with the potential to meet economic and
environmental needs for the long-term future should be pursued as part of a
balanced national energy plan;
(5) fusion energy is an attractive long-term energy source because of
the virtually inexhaustible supply of fuel, and the promise of minimal
adverse environmental impact and inherent safety;
(6) the National Research Council, the President's Committee of Advisers
on Science and Technology, and the Secretary of Energy Advisory Board have
each recently reviewed the Fusion Energy Sciences Program and each strongly
supports the fundamental science and creative innovation of the program, and
has confirmed that progress toward the goal of producing practical fusion
energy has been excellent, although much scientific and engineering work
remains to be done;
(7) each of these reviews stressed the need for a magnetic fusion
burning plasma experiment to address key scientific issues and as a
necessary step in the development of fusion energy;
(8) the National Research Council has also called for a broadening of
the Fusion Energy Sciences Program research base as a means to more fully
integrate the fusion science community into the broader scientific
community; and
(9) the Fusion Energy Sciences Program budget is inadequate to support
the necessary science and innovation for the present generation of
experiments, and cannot accommodate the cost of a burning plasma experiment
constructed by the United States, or even the cost of key participation by
the United States in an international effort.
SEC. 2503. PLAN FOR FUSION EXPERIMENT.
(a) PLAN FOR UNITED STATES FUSION EXPERIMENT- The Secretary, on the basis
of full consultation with the Fusion Energy Sciences Advisory Committee and
the Secretary of Energy Advisory Board, as appropriate, shall develop a plan
for United States construction 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.
(b) REQUIREMENTS OF PLAN- The plan described in subsection (a) shall--
(1) address key burning plasma physics issues; and
(2) 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) UNITED STATES PARTICIPATION IN AN INTERNATIONAL EXPERIMENT- In
addition to the plan described in subsection (a), the Secretary, on the basis
of full consultation with the Fusion Energy Sciences Advisory Committee and
the Secretary of Energy Advisory Board, as appropriate, 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 (a). If the Secretary elects to develop a plan under
this subsection, he shall include the information described in subsection (b),
and an estimate of the cost of United States participation in such an
international experiment. The Secretary shall request a review by the National
Academies of Sciences and Engineering of a plan developed under this
subsection, and shall transmit the plan and the review to the Congress not
later than July 1, 2004.
(d) AUTHORIZATION OF RESEARCH AND DEVELOPMENT- The Secretary, through the
Fusion Energy Sciences Program, may conduct any research and development
necessary to fully develop the plans described in this section.
SEC. 2504. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.
Not later than 6 months after the date of the enactment of this Act, the
Secretary, in full consultation with FESAC, shall develop and transmit to the
Congress a plan for the purpose of ensuring a strong scientific base for the
Fusion Energy Sciences Program and to enable the experiments described in
section 2503. Such plan shall include as its objectives--
(1) to ensure that existing fusion research facilities and equipment are
more fully utilized with appropriate measurements and control tools;
(2) to ensure a strengthened fusion science theory and computational
base;
(3) to ensure that the selection of and funding for new magnetic and
inertial fusion research facilities is based on scientific innovation and
cost effectiveness;
(4) to improve the communication of scientific results and methods
between the fusion science community and the wider scientific
community;
(5) to ensure that adequate support is provided to optimize the design
of the magnetic fusion burning plasma experiments referred to in section
2503;
(6) to ensure that inertial confinement fusion facilities are utilized
to the extent practicable for the purpose of inertial fusion energy research
and development;
(7) to develop a roadmap for a fusion-based energy source that shows the
important scientific questions, the evolution of confinement configurations,
the relation between these two features, and their relation to the fusion
energy goal;
(8) to establish several new centers of excellence, selected through a
competitive peer-review process and devoted to exploring the frontiers of
fusion science;
(9) to ensure that the National Science Foundation, and other agencies,
as appropriate, play a role in extending the reach of fusion science and in
sponsoring general plasma science; and
(10) to ensure that there be continuing broad assessments of the outlook
for fusion energy and periodic external reviews of fusion energy
sciences.
SEC. 2505. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary for the
development and review, but not for implementation, of the plans described in
this subtitle and for activities of the Fusion Energy Sciences Program
$320,000,000 for fiscal year 2002 and $335,000,000 for fiscal year 2003, of
which up to $15,000,000 for each of fiscal year 2002 and fiscal year 2003 may
be used to establish several new centers of excellence, selected through a
competitive peer-review process and devoted to exploring the frontiers of
fusion science.
Subtitle B--Spallation Neutron Source
SEC. 2521. DEFINITION.
For the purposes of this subtitle, the term `Spallation Neutron Source'
means Department Project 99-E-334, Oak Ridge National Laboratory, Oak Ridge,
Tennessee.
SEC. 2522. AUTHORIZATION OF APPROPRIATIONS.
(a) AUTHORIZATION OF CONSTRUCTION FUNDING- There are authorized to be
appropriated to the Secretary for construction of the Spallation Neutron
Source--
(1) $276,300,000 for fiscal year 2002;
(2) $210,571,000 for fiscal year 2003;
(3) $124,600,000 for fiscal year 2004;
(4) $79,800,000 for fiscal year 2005; and
(5) $41,100,000 for fiscal year 2006 for completion of
construction.
(b) AUTHORIZATION OF OTHER PROJECT FUNDING- There are authorized to be
appropriated to the Secretary for other project costs (including research and
development necessary to complete the project, preoperations costs, and
capital equipment not related to construction) of the Spallation Neutron
Source $15,353,000 for fiscal year 2002 and $103,279,000 for the period
encompassing fiscal years 2003 through 2006, to remain available until
expended through September 30, 2006.
SEC. 2523. REPORT.
The Secretary shall report on the Spallation Neutron Source as part of the
Department's annual budget submission, including a description of the
achievement of milestones, a comparison of actual costs to estimated costs,
and any changes in estimated project costs or schedule.
SEC. 2524. LIMITATIONS.
The total amount obligated by the Department, including prior year
appropriations, for the Spallation Neutron Source may not exceed--
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
Subtitle C--Facilities, Infrastructure, and User
Facilities
SEC. 2541. DEFINITION.
For purposes of this subtitle--
(1) the term `nonmilitary energy laboratory' means--
(B) Argonne National Laboratory;
(C) Brookhaven National Laboratory;
(D) Fermi National Accelerator Laboratory;
(E) Lawrence Berkeley National Laboratory;
(F) Oak Ridge National Laboratory;
(G) Pacific Northwest National Laboratory;
(H) Princeton Plasma Physics Laboratory;
(I) Stanford Linear Accelerator Center;
(J) Thomas Jefferson National Accelerator Facility; or
(K) any other facility of the Department that the Secretary, in
consultation with the Director, Office of Science and the appropriate
congressional committees, determines to be consistent with the mission of
the Office of Science; and
(2) the term `user facility' means--
(A) an Office of Science facility at a nonmilitary energy laboratory
that provides special scientific and research capabilities, including
technical expertise and support as appropriate, to serve the research
needs of the Nation's universities, industry, private laboratories,
Federal laboratories, and others, including research institutions or
individuals from other nations where reciprocal accommodations are
provided to United States research institutions and individuals or where
the Secretary considers such accommodation to be in the national interest;
and
(B) any other Office of Science funded facility designated by the
Secretary as a user facility.
SEC. 2542. FACILITY AND INFRASTRUCTURE SUPPORT FOR NONMILITARY ENERGY
LABORATORIES.
(a) FACILITY POLICY- The Secretary shall develop and implement a
least-cost nonmilitary energy laboratory facility and infrastructure strategy
for--
(1) maintaining existing facilities and infrastructure, as needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) PLAN- The Secretary shall prepare a comprehensive 10-year plan for
conducting future facility maintenance, making repairs, modifications, and new
additions, and constructing new facilities at each nonmilitary energy
laboratory. Such plan shall provide for facilities work in accordance with the
following priorities:
(1) Providing for the safety and health of employees, visitors, and the
general public with regard to correcting existing structural, mechanical,
electrical, and environmental deficiencies.
(2) Providing for the repair and rehabilitation of existing facilities
to keep them in use and prevent deterioration, if feasible.
(3) Providing engineering design and construction services for those
facilities that require modification or additions in order to meet the needs
of new or expanded programs.
(1) TRANSMITTAL- Within 1 year after the date of the enactment of this
Act, the Secretary shall prepare and transmit to the appropriate
congressional committees a report containing the plan prepared under
subsection (b).
(2) CONTENTS- For each nonmilitary energy laboratory, such report shall
contain--
(A) the current priority list of proposed facilities and
infrastructure projects, including cost and schedule
requirements;
(B) a current ten-year plan that demonstrates the reconfiguration of
its facilities and infrastructure to meet its missions and to address its
long-term operational costs and return on investment;
(C) the total current budget for all facilities and infrastructure
funding; and
(D) the current status of each facilities and infrastructure project
compared to the original baseline cost, schedule, and scope.
(3) ADDITIONAL ELEMENTS- The report shall also--
(A) include a plan for new facilities and facility modifications at
each nonmilitary energy laboratory that will be required to meet the
Department's changing missions of the twenty-first century, including
schedules and estimates for implementation, and including a section
outlining long-term funding requirements consistent with anticipated
budgets and annual authorization of appropriations;
(B) address the coordination of modernization and consolidation of
facilities among the nonmilitary energy laboratories in order to meet
changing mission requirements; and
(C) provide for annual reports to the appropriate congressional
committees on accomplishments, conformance to schedules, commitments, and
expenditures.
SEC. 2543. USER FACILITIES.
(a) NOTICE REQUIREMENT- When the Department makes a user facility
available to universities and other potential users, or seeks input from
universities and other potential users regarding significant characteristics
or equipment in a user facility or a proposed user facility, the Department
shall ensure broad public notice of such availability or such need for input
to universities and other potential users.
(b) COMPETITION REQUIREMENT- When the Department considers the
participation of a university or other potential user in the establishment or
operation of a user facility, the Department shall employ full and open
competition in selecting such a participant.
(c) PROHIBITION- The Department may not redesignate a user facility, as
defined by section 2541(b) as something other than a user facility for avoid
the requirements of subsections (a) and (b).
Subtitle D--Advisory Panel on Office of Science
SEC. 2561. ESTABLISHMENT.
The Director of the Office of Science and Technology Policy, in
consultation with the Secretary, shall establish an Advisory Panel on the
Office of Science comprised of knowledgeable individuals to--
(1) address concerns about the current status and the future of
scientific research supported by the Office;
(2) examine alternatives to the current organizational structure of the
Office within the Department, taking into consideration existing structures
for the support of scientific research in other Federal agencies and the
private sector; and
(3) suggest actions to strengthen the scientific research supported by
the Office that might be taken jointly by the Department and Congress.
SEC. 2562. REPORT.
Within 6 months after the date of the enactment of this Act, the Advisory
Panel shall transmit its findings and recommendations in a report to the
Director of the Office of Science and Technology Policy and the Secretary. The
Director and the Secretary shall jointly--
(1) consider each of the Panel's findings and recommendations, and
comment on each as they consider appropriate; and
(2) transmit the Panel's report and the comments of the Director and the
Secretary on the report to the appropriate congressional committees within 9
months after the date of the enactment of this Act.
Subtitle E--Department of Energy Authorization of
Appropriations
SEC. 2581. AUTHORIZATION OF APPROPRIATIONS.
(a) OPERATION AND MAINTENANCE- Including the amounts authorized to be
appropriated for fiscal year 2002 under section 2505 for Fusion Energy
Sciences and under section 2522(b) for the Spallation Neutron Source, there
are authorized to be appropriated to the Secretary for the Office of Science
(also including subtitle C, High Energy Physics, Nuclear Physics, Biological
and Environmental Research, Basic Energy Sciences (except for the Spallation
Neutron Source), Advanced Scientific Computing Research, Energy Research
Analysis, Multiprogram Energy Laboratories-Facilities Support, Facilities and
Infrastructure, Safeguards and Security, and Program Direction) operation and
maintenance $3,299,558,000 for fiscal year 2002, to remain available until
expended.
(b) RESEARCH REGARDING PRECIOUS METAL CATALYSIS- Within the amounts
authorized to be appropriated to the Secretary under subsection (a),
$5,000,000 for fiscal year 2002 may be used to carry out research in the use
of precious metals (excluding platinum, palladium, and rhodium) in catalysis,
either directly though national laboratories, or through the award of grants,
cooperative agreements, or contracts with public or nonprofit entities.
(c) CONSTRUCTION- In addition to the amounts authorized to be appropriated
under section 2522(a) for construction of the Spallation Neutron Source, there
are authorized to be appropriated to the Secretary for Science--
(1) $19,400,000 for fiscal year 2002, $14,800,000 for fiscal year 2003,
and $8,900,000 for fiscal year 2004 for completion of constuction of Project
98-G-304, Neutrinos at the Main Injector, Fermi National Accelerator
Laboratory;
(2) $11,405,000 for fiscal year 2002 for completion of construction of
Project 01-E-300, Laboratory for Comparative and Functional Genomics, Oak
Ridge National Laboratory;
(3) $4,000,000 for fiscal year 2002, $8,000,000 for fiscal year 2003,
and $2,000,000 for fiscal year 2004 for completion of construction of
Project 02-SC-002, Project Engineering Design (PED), Various
Locations;
(4) $3,183,000 for fiscal year 2002 for completion of construction of
Project 02-SC-002, Multiprogram Energy Laboratories Infrastructure Project
Engineering Design (PED), Various Locations; and
(5) $18,633,000 for fiscal year 2002 and $13,029,000 for fiscal year
2003 for completion of construction of Project MEL-001, Multiprogram Energy
Laboratories, Infrastructure, Various Locations.
(d) LIMITS ON USE OF FUNDS- None of the funds authorized to be
appropriated in subsection (c) may be used for construction at any national
security laboratory as defined in section 3281(1) of the National Defense
Authorization Act for Fiscal Year 2000 (50 U.S.C. 2471(1)) or at any nuclear
weapons production facility as defined in section 3281(2) of the National
Defense Authorization Act for Fiscal Year 2000 (50 U.S.C. 2471(2)).
TITLE VI--MISCELLANEOUS
Subtitle A--General Provisions for the Department of
Energy
SEC. 2601. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION
OF ENERGY TECHNOLOGY PROGRAMS, PROJECTS, AND ACTIVITIES.
(a) AUTHORIZED ACTIVITIES- Except as otherwise provided in this division,
research, development, demonstration, and commercial application programs,
projects, and activities for which appropriations are authorized under this
division may be carried out under the procedures of the Federal Nonnuclear
Energy Research and Development Act of 1974 (42 U.S.C. 5901 et seq.), the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), or any other Act under
which the Secretary is authorized to carry out such programs, projects, and
activities, but only to the extent the Secretary is authorized to carry out
such activities under each such Act.
(b) AUTHORIZED AGREEMENTS- Except as otherwise provided in this division,
in carrying out research, development, demonstration, and commercial
application programs, projects, and activities for which appropriations are
authorized under this division, the Secretary 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, and any other form of agreement available to the
Secretary.
(c) DEFINITION- For purposes of this section, the term `joint venture' has
the meaning given that term under section 2 of the National Cooperative
Research and Production Act of 1993 (15 U.S.C. 4301), except that such term
may apply under this section to research, development, demonstration, and
commercial application of energy technology joint ventures.
(d) PROTECTION OF INFORMATION- Section 12(c)(7) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710a(c)(7)), relating to the
protection of information, shall apply to research, development,
demonstration, and commercial application of energy technology programs,
projects, and activities for which appropriations are authorized under this
division.
(e) INVENTIONS- An invention conceived and developed by any person using
funds provided through a grant under this division shall be considered a
subject invention for the purposes of chapter 18 of title 35, United States
Code (commonly referred to as the Bayh-Dole Act).
(f) OUTREACH- The Secretary shall ensure that each program authorized by
this division includes an outreach component to provide information, as
appropriate, to manufacturers, consumers, engineers, architects, builders,
energy service companies, universities, facility planners and managers, State
and local governments, and other entities.
(g) GUIDELINES AND PROCEDURES- The Secretary shall provide guidelines and
procedures for the transition, where appropriate, of energy technologies from
research through development and demonstration to commercial application of
energy technology. Nothing in this section shall preclude the Secretary
from--
(1) entering into a contract, cooperative agreement, cooperative
research and development agreement under the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), grant, joint venture, or
any other form of agreement available to the Secretary under this section
that relates to research, development, demonstration, and commercial
application of energy technology; or
(2) extending a contract, cooperative agreement, cooperative research
and development agreement under the Stevenson-Wydler Technology Innovation
Act of 1980, grant, joint venture, or any other form of agreement available
to the Secretary that relates to research, development, and demonstration to
cover commercial application of energy technology.
(h) APPLICATION OF SECTION- This section shall not apply to any contract,
cooperative agreement, cooperative research and development agreement under
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.), grant, joint venture, or any other form of agreement available to the
Secretary that is in effect as of the date of the enactment of this Act.
SEC. 2602. LIMITS ON USE OF FUNDS.
(a) MANAGEMENT AND OPERATING CONTRACTS-
(1) COMPETITIVE PROCEDURE REQUIREMENT- None of the funds authorized to
be appropriated to the Secretary by this division may be used to award a
management and operating contract for a federally owned or operated
nonmilitary energy laboratory of the Department unless such contract is
awarded using competitive procedures or the Secretary grants, on a
case-by-case basis, a waiver to allow for such a deviation. The Secretary
may not delegate the authority to grant such a waiver.
(2) CONGRESSIONAL NOTICE- At least 2 months before a contract award,
amendment, or modification for which the Secretary intends to grant such a
waiver, the Secretary shall submit to the appropriate congressional
committees a report notifying the committees of the waiver and setting forth
the reasons for the waiver.
(b) PRODUCTION OR PROVISION OF ARTICLES OR SERVICES- None of the funds
authorized to be appropriated to the Secretary by this division may be used to
produce or provide articles or services for the purpose of selling the
articles or services to a person outside the Federal Government, unless the
Secretary determines that comparable articles or services are not available
from a commercial source in the United States.
(c) REQUESTS FOR PROPOSALS- None of the funds authorized to be
appropriated to the Secretary by this division may be used by the Department
to prepare or initiate Requests for Proposals for a program if the program has
not been authorized by Congress.
SEC. 2603. COST SHARING.
(a) RESEARCH AND DEVELOPMENT- Except as otherwise provided in this
division, for research and development programs carried out under this
division, 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 COMMERCIAL APPLICATION- Except as otherwise provided
in this division, the Secretary shall require at least 50 percent of the costs
directly and specifically related to any demonstration or commercial
application project under this division to be provided from non-Federal
sources. The Secretary may reduce 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 the objectives of this division.
(c) CALCULATION OF AMOUNT- In calculating the amount of the non-Federal
commitment under subsection (a) or (b), the Secretary may include personnel,
services, equipment, and other resources.
SEC. 2604. LIMITATION ON DEMONSTRATION AND COMMERCIAL APPLICATION OF ENERGY
TECHNOLOGY.
Except as otherwise provided in this division, the Secretary shall provide
funding for scientific or energy demonstration and commercial application of
energy technology programs, projects, or activities only for technologies or
processes that can be reasonably expected to yield new, measurable benefits to
the cost, efficiency, or performance of the technology or process.
SEC. 2605. REPROGRAMMING.
(a) AUTHORITY- The Secretary may use amounts appropriated under this
division for a program, project, or activity other than the program, project,
or activity for which such amounts were appropriated only if--
(1) the Secretary has transmitted to the appropriate congressional
committees a report described in subsection (b) and a period of 30 days has
elapsed after such committees receive the report;
(2) amounts used for the program, project, or activity do not
exceed--
(A) 105 percent of the amount authorized for the program, project, or
activity; or
(B) $250,000 more than the amount authorized for the program, project,
or activity,
(3) the program, project, or activity has been presented to, or
requested of, the Congress by the Secretary.
(b) REPORT- (1) The report referred to in subsection (a) is a report
containing a full and complete statement of the action proposed to be taken
and the facts and circumstances relied upon in support of the proposed
action.
(2) In the computation of the 30-day period under subsection (a), there
shall be excluded any day on which either House of Congress is not in session
because of an adjournment of more than 3 days to a day certain.
(c) LIMITATIONS- (1) In no event may the total amount of funds obligated
by the Secretary pursuant to this division exceed the total amount authorized
to be appropriated to the Secretary by this division.
(2) Funds appropriated to the Secretary pursuant to this division may not
be used for an item for which Congress has declined to authorize funds.
Subtitle B--Other Miscellaneous Provisions
SEC. 2611. NOTICE OF REORGANIZATION.
The Secretary shall provide notice to the appropriate congressional
committees not later than 15 days before any reorganization of any
environmental research or development, scientific or energy research,
development, or demonstration, or commercial application of energy technology
program, project, or activity of the Department.
SEC. 2612. LIMITS ON GENERAL PLANT PROJECTS.
If, at any time during the construction of a civilian environmental
research and development, scientific or energy research, development, or
demonstration, or commercial application of energy technology project of the
Department for which no specific funding level is provided by law, the
estimated cost (including any revision thereof) of the project exceeds
$5,000,000, the Secretary may not continue such construction unless the
Secretary has furnished a complete report to the appropriate congressional
committees explaining the project and the reasons for the estimate or
revision.
SEC. 2613. LIMITS ON CONSTRUCTION PROJECTS.
(a) LIMITATION- Except as provided in subsection (b), construction on a
civilian environmental research and development, scientific or energy
research, development, or demonstration, or commercial application of energy
technology project of the Department for which funding has been specifically
provided by law may not be started, and additional obligations may not be
incurred in connection with the project above the authorized funding amount,
whenever the current estimated cost of the construction project exceeds by
more than 10 percent the higher of--
(1) the amount authorized for the project, if the entire project has
been funded by the Congress; or
(2) the amount of the total estimated cost for the project as shown in
the most recent budget justification data submitted to Congress.
(b) NOTICE- An action described in subsection (a) may be taken if--
(1) the Secretary has submitted to the appropriate congressional
committees a report on the proposed actions and the circumstances making
such actions necessary; and
(2) a period of 30 days has elapsed after the date on which the report
is received by the committees.
(c) EXCLUSION- In the computation of the 30-day period described in
subsection (b)(2), there shall be excluded any day on which either House of
Congress is not in session because of an adjournment of more than 3 days to a
day certain.
(d) EXCEPTION- Subsections (a) and (b) shall not apply to any construction
project that has a current estimated cost of less than $5,000,000.
SEC. 2614. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.
(a) REQUIREMENT FOR CONCEPTUAL DESIGN- (1) Subject to paragraph (2) and
except as provided in paragraph (3), before submitting to Congress a request
for funds for a construction project that is in support of a civilian
environmental research and development, scientific or energy research,
development, or demonstration, or commercial application of energy technology
program, project, or activity of the Department, the Secretary shall complete
a conceptual design for that project.
(2) If the estimated cost of completing a conceptual design for a
construction project exceeds $750,000, the Secretary shall submit to Congress
a request for funds for the conceptual design before submitting a request for
funds for the construction project.
(3) The requirement in paragraph (1) does not apply to a request for funds
for a construction project, the total estimated cost of which is less than
$5,000,000.
(b) AUTHORITY FOR CONSTRUCTION DESIGN- (1) The Secretary may carry out
construction design (including architectural and engineering services) in
connection with any proposed construction project that is in support of a
civilian environmental research and development, scientific or energy
research, development, and demonstration, or commercial application of energy
technology program, project, or activity of the Department if the total
estimated cost for such design does not exceed $250,000.
(2) If the total estimated cost for construction design in connection with
any construction project described in paragraph (1) exceeds $250,000, funds
for such design must be specifically authorized by law.
SEC. 2615. NATIONAL ENERGY POLICY DEVELOPMENT GROUP MANDATED REPORTS.
(a) THE SECRETARY'S REVIEW OF ENERGY EFFICIENCY RENEWABLE ENERGY, AND
ALTERNATIVE ENERGY RESEARCH AND DEVELOPMENT- Upon completion of the
Secretary's review of current funding and historic performance of the
Department's energy efficiency, renewable energy, and alternative energy
research and development programs in response to the recommendations of the
May 16, 2001, Report of the National Energy Policy Development Group, the
Secretary shall transmit a report containing the results of such review to the
appropriate congressional committees.
(b) REVIEW AND RECOMMENDATIONS ON USING THE NATION'S ENERGY RESOURCES MORE
EFFICIENTLY- Upon completion of the Office of Science and Technology Policy
and the President's Council of Advisors on Science and Technology reviewing
and making recommendations on using the Nation's energy resources more
efficiently, in response to the recommendation of the May 16, 2001, Report of
the National Energy Policy Development Group, the Director of the Office of
Science and Technology Policy shall transmit a report containing the results
of such review and recommendations to the appropriate congressional
committees.
SEC. 2616. PERIODIC REVIEWS AND ASSESSMENTS.
The Secretary shall enter into appropriate arrangements with the National
Academies of Sciences and Engineering to ensure that there be periodic reviews
and assessments of the programs authorized by this division, as well as the
measurable cost and performance-based goals for such programs as established
under section 2004, and the progress on meeting such goals. Such reviews and
assessments shall be conducted at least every 5 years, or more often as the
Secretary considers necessary, and the Secretary shall transmit to the
appropriate congressional committees reports containing the results of such
reviews and assessments.
DIVISION C
SEC. 3001. SHORT TITLE.
(a) SHORT TITLE- This division may be cited as the `Energy Tax Policy Act
of 2001'.
(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 I--CONSERVATION
SEC. 3101. CREDIT FOR RESIDENTIAL SOLAR ENERGY 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 SOLAR ENERGY 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, and
`(2) 15 percent of the qualified solar water heating property
expenditures made by the taxpayer during the taxable year.
`(1) MAXIMUM CREDIT- The credit allowed under subsection (a) shall not
exceed--
`(A) $2,000 for each system of property described in subsection
(c)(1), and
`(B) $2,000 for each system of property described in subsection
(c)(2).
`(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 equipment, such equipment 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, and
`(B) in the case of a photovoltaic system, such system meets
appropriate fire and electric code requirements.
`(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 sections 23, 25D, and 25E) and section 27 for the taxable
year.
`(c) 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 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 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) LABOR COSTS- Expenditures for labor costs properly allocable to the
onsite preparation, assembly, or original installation of the property
described in paragraph (1) or (2) and for piping or wiring to interconnect
such property to the dwelling unit shall be taken into account for purposes
of this section.
`(5) 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.
`(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 he
owns, such individual shall be treated as having made his 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- 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)(4)(A)).
`(e) 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.
`(f) TERMINATION- The credit allowed under this section shall not apply to
taxable years beginning after December 31, 2006 (December 31, 2008, with
respect to qualified photovoltaic property expenditures).'.
(b) CONFORMING AMENDMENTS-
(1) Subsection (a) of section 1016 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 25C(e), in the case of amounts
with respect to which a credit has been allowed under section 25C.'.
(2) 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 solar energy property.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after December 31, 2001.
SEC. 3102. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED FROM
RENEWABLE RESOURCES.
(a) EXTENSION OF CREDIT FOR WIND AND CLOSED-LOOP BIOMASS FACILITIES-
Subparagraphs (A) and (B) of section 45(c)(3) are each amended by striking
`2002' and inserting `2007'.
(b) EXPANSION OF CREDIT FOR OPEN-LOOP BIOMASS AND LANDFILL GAS FACILITIES-
Paragraph (3) of section 45(c) is amended by adding at the end the following
new subparagraphs:
`(D) OPEN-LOOP BIOMASS FACILITIES- In the case of a facility using
open-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, 2007.
`(E) LANDFILL GAS FACILITIES- In the case of a facility producing
electricity from gas derived from the biodegradation of municipal solid
waste, the term `qualified facility' means any facility owned by the
taxpayer which is originally placed in service before January 1,
2007.'.
(c) DEFINITION AND SPECIAL RULES- Subsection (c) of section 45 is amended
by adding at the end the following new paragraphs:
`(5) OPEN-LOOP BIOMASS- The term `open-loop 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,
`(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.
Such term shall not include closed-loop biomass.
`(6) REDUCED CREDIT FOR CERTAIN PREEFFECTIVE DATE FACILITIES- In the
case of any facility described in subparagraph (D) or (E) of paragraph (3)
which is placed in service before the date of the enactment of this
subparagraph--
`(A) subsection (a)(1) shall be applied by substituting `1.0 cents'
for `1.5 cents', and
`(B) the 5-year period beginning on the date of the enactment of this
paragraph shall be substituted in lieu of the 10-year period in subsection
(a)(2)(A)(ii).
`(7) LIMIT ON REDUCTIONS FOR GRANTS, ETC., FOR OPEN-LOOP BIOMASS
FACILITIES- If the amount of the credit determined under subsection (a) with
respect to any open-loop biomass facility is required to be reduced under
paragraph (3) of subsection (b), the fraction under such paragraph shall in
no event be greater than 4/5 .
`(8) COORDINATION WITH SECTION 29- The term `qualified facility' shall
not include any facility the production from which is allowed as a credit
under section 29 for the taxable year or any prior taxable year.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
electricity sold after the date of the enactment of this Act.
SEC. 3103. CREDIT FOR QUALIFIED STATIONARY FUEL CELL POWERPLANTS.
(1) 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) equipment which is part of a qualified stationary fuel cell
powerplant,'.
(2) QUALIFIED STATIONARY FUEL CELL POWERPLANT- 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 STATIONARY FUEL CELL POWERPLANT- For purposes of this
subsection--
`(A) IN GENERAL- The term `qualified stationary fuel cell powerplant'
means a stationary fuel cell power plant that has an electricity-only
generation efficiency greater than 30 percent.
`(B) LIMITATION- In the case of qualified stationary fuel cell
powerplant placed in service during the taxable year, the credit under
subsection (a) for such year may not exceed $1,000 for each kilowatt of
capacity.
`(C) STATIONARY FUEL CELL POWER PLANT- The term `stationary 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.
`(D) TERMINATION- Such term shall not include any property placed in
service after December 31, 2006.'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to property placed in service after December 31, 2001, 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).
(b) NONBUSINESS PROPERTY-
(1) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting after
section 25C the following new section:
`SEC. 25D. NONBUSINESS QUALIFIED STATIONARY FUEL CELL POWERPLANT.
`(a) IN GENERAL- 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 qualified stationary fuel cell powerplant
expenditures which are paid or incurred during such year.
`(1) IN GENERAL- The credit allowed under subsection (a) for the taxable
year and all prior taxable years shall not exceed $1,000 for each kilowatt
of capacity.
`(2) 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 sections 23 and 25E) and section 27 for the taxable
year.
`(c) QUALIFIED STATIONARY FUEL CELL POWERPLANT EXPENDITURES- For purposes
of this section, the term `qualified stationary fuel cell powerplant
expenditures' means expenditures by the taxpayer for any qualified stationary
fuel cell powerplant (as defined in section 48(a)(4))--
`(1) which meets the requirements of subparagraphs (B) and (D) of
section 48(a)(3), and
`(2) which is installed on or in connection with a dwelling unit--
`(A) which is located in the United States, and
`(B) which is used by the taxpayer as a residence.
Such term includes expenditures for labor costs properly allocable to the
onsite preparation, assembly, or original installation of the property.
`(d) SPECIAL RULES- For purposes of this section, rules similar to the
rules of section 25C(d) shall apply.
`(e) 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.
`(f) TERMINATION- This section shall not apply to any expenditure made
after December 31, 2006.'.
(2) CONFORMING AMENDMENTS-
(A) Subsection (a) of section 1016 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 25D(e), in the case of amounts
with respect to which a credit has been allowed under section 25D.'.
(B) 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 25C
the following new item:
`Sec. 25D. Nonbusiness qualified stationary fuel cell powerplant.'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to expenditures paid or incurred after December 31, 2001.
SEC. 3104. 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:
`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),
`(3) the new qualified alternative fuel motor vehicle credit determined
under subsection (d), and
`(4) the advanced lean burn technology motor vehicle credit determined
under subsection (e).
`(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:
`If vehicle inertia weight class is:
The 2000 model year city 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 or 8,500 lbs
11.1 mpg.
`(ii) In the case of a light truck:
`If vehicle inertia weight class is:
The 2000 model year city 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 or 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 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 2.5 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
$1,500
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 passenger automobile or light truck shall be increased
by--
`(I) $1,000, if such vehicle achieves at least 125 percent but
less than 150 percent of the 2000 model year city fuel
economy,
`(II) $1,500, if such vehicle achieves at least 150 percent but
less than 175 percent of the 2000 model year city fuel
economy,
`(III) $2,000, if such vehicle achieves at least 175 percent but
less than 200 percent of the 2000 model year city fuel
economy,
`(IV) $2,500, if such vehicle achieves at least 200 percent but
less than 225 percent of the 2000 model year city fuel
economy,
`(V) $3,000, if such vehicle achieves at least 225 percent but
less than 250 percent of the 2000 model year city fuel economy,
and
`(VI) $3,500, 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.
`(iii) OPTION TO USE LIKE VEHICLE- For purposes of clause (i), at
the option of the vehicle manufacturer, the increase for fuel efficiency
may be calculated by comparing the new qualified hybrid motor vehicle to
a `like 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 increase 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 increase 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 increase 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 increase credit amount is:
2002
$14,000
2003
$12,000
2004
$10,000
2005
$8,000
2006
$6,000.
`(D) CONSERVATION CREDIT-
`(i) AMOUNT- The amount determined under subparagraph (A)(i) with
respect to a passenger automobile or light truck shall be increased
by--
`(I) $250, if such vehicle achieves a lifetime fuel savings of at
least 1,500 gallons of gasoline, and
`(II) $500, if such vehicle achieves a lifetime fuel savings of at
least 2,500 gallons of gasoline.
`(ii) LIFETIME FUEL SAVINGS FOR LIKE VEHICLE- For purposes of clause
(i), at the option of the vehicle manufacturer, the lifetime fuel
savings fuel may be calculated by comparing the new qualified hybrid
motor vehicle to a `like vehicle'.
`(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 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 battery or other electrical storage
device, during a standard 10 second pulse power test, divided by the
sum of the battery or other electrical storage device 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 battery or other electrical storage
device, during a standard 10 second pulse power test, divided by the
vehicle's total traction power. The term `total traction power' means
the sum of the electric motor peak power and the heat engine peak
power of the vehicle, except that if the electric motor is the sole
means by which the vehicle can be driven, the total traction power is
the peak electric motor power.
`(iv) LIKE VEHICLE- For purposes of subparagraph (B)(iii), the term
`like vehicle' for a new qualified hybrid motor vehicle derived from a
conventional production vehicle produced in the same model year means a
model that is equivalent in the following areas:
`(I) Body style (2-door or 4-door).
`(II) Transmission (automatic or manual).
`(III) Acceleration performance ( 0.05 seconds).
`(IV) Drivetrain (2-wheel drive or 4-wheel drive).
`(V) Certification by the Administrator of the Environmental
Protection Agency.
`(v) LIFETIME FUEL SAVINGS- For purposes of subsection (c)(2)(D),
the term `lifetime fuel savings' shall be calculated by dividing 120,000
by the difference between the 2000 model year city fuel economy for the
vehicle inertia weight class and the city fuel economy for the new
qualified hybrid motor vehicle.
`(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, 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,
`(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 from an applicable State certifying the
vehicle for sale or lease 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 95/5 mixed-fuel vehicle, 95 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 from an applicable State certifying
the vehicle for sale or lease 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) 95/5 MIXED-FUEL VEHICLE- For purposes of this subsection, the
term `95/5 mixed-fuel vehicle' means a mixed-fuel vehicle which operates
using at least 95 percent alternative fuel and not more than 5 percent
petroleum-based fuel.
`(e) ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE CREDIT-
`(1) IN GENERAL- For purposes of subsection (a), the advanced lean burn
technology motor vehicle credit determined under this subsection with
respect to a new qualified advanced lean burn technology motor vehicle
placed in service by the taxpayer during the taxable year is the credit
amount determined under paragraph (2).
`(A) INCREASE FOR FUEL EFFICIENCY- The credit amount determined under
this paragraph shall be--
`(i) $1,000, if such vehicle achieves at least 125 percent but less
than 150 percent of the 2000 model year city fuel economy,
`(ii) $1,500, if such vehicle achieves at least 150 percent but less
than 175 percent of the 2000 model year city fuel economy,
`(iii) $2,000, if such vehicle achieves at least 175 percent but
less than 200 percent of the 2000 model year city fuel
economy,
`(iv) $2,500, if such vehicle achieves at least 200 percent but less
than 225 percent of the 2000 model year city fuel economy,
`(v) $3,000, if such vehicle achieves at least 225 percent but less
than 250 percent of the 2000 model year city fuel economy,
and
`(vi) $3,500, if such vehicle achieves at least 250 percent of the
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.
`(B) CONSERVATION CREDIT- The amount determined under subparagraph (A)
with respect to an advanced lean burn technology motor vehicle shall be
increased by--
`(i) $250, if such vehicle achieves a lifetime fuel savings of at
least 1,500 gallons of gasoline, and
`(ii) $500, if such vehicle achieves a lifetime fuel savings of at
least 2,500 gallons of gasoline.
`(C) OPTION TO USE LIKE VEHICLE- At the option of the vehicle
manufacturer, the increase for fuel efficiency and conservation credit may
be calculated by comparing the new advanced lean-burn technology motor
vehicle to a like vehicle.
`(3) DEFINITIONS- For purposes of this subsection-
`(A) ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE- The term `advanced
lean burn technology motor vehicle' means a motor vehicle with an internal
combustion engine that--
`(i) is designed to operate primarily using more air than is
necessary for complete combustion of the fuel,
`(ii) incorporates direct injection,
`(iii) achieves at least 125 percent of the 2000 model year city
fuel economy, and
`(iv) for 2004 and later model vehicles, has received a certificate
that such vehicle meets or exceeds the Bin 5, Tier 2 emission levels
(for passenger vehicles) or Bin 8, Tier 2 emission levels (for light
trucks) 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.
`(B) LIKE VEHICLE- The term `like vehicle' for an advanced lean burn
technology motor vehicle derived from a conventional production vehicle
produced in the same model year means a model that is equivalent in the
following areas:
`(i) Body style (2-door or 4-door),
`(ii) Transmission (automatic or manual),
`(iii) Acceleration performance ( 0.05 seconds).
`(iv) Drivetrain (2-wheel drive or 4-wheel drive).
`(v) Certification by the Administrator of the Environmental
Protection Agency.
`(C) LIFETIME FUEL SAVINGS- The term `lifetime fuel savings' shall be
calculated by dividing 120,000 by the difference between the 2000 model
year city fuel economy for the vehicle inertia weight class and the city
fuel economy for the new qualified hybrid motor vehicle.
`(f) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
`(1) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(2) the sum of the credits allowable under subpart A and sections 27,
29, and 30A for the taxable year.
`(g) 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) 2000 MODEL YEAR CITY FUEL ECONOMY- The 2000 model year city fuel
economy with respect to any vehicle shall be measured under rules similar to
the rules under section 4064(c).
`(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.
`(6) NO DOUBLE BENEFIT- The amount of any deduction or credit allowable
under this chapter (other than the credit allowable under this
section)--
`(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 in any sale or lease document the specific amount of any credit
otherwise allowable to the entity under this section and reduces the sale or
lease price of such vehicle by an equivalent amount of such credit.
`(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) 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
(f) for such taxable year (referred to as the `unused credit year' in this
paragraph), such excess shall be allowed as a credit carryforward for each
of the 20 taxable years following the unused credit year.
`(B) RULES- Rules similar to the rules of section 39 shall apply with
respect to the 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- The Secretary shall promulgate such regulations as
necessary to carry out the provisions of this section.
`(2) ADMINISTRATOR OF ENVIRONMENTAL PROTECTION AGENCY- The Administrator
of the Environmental Protection Agency, in coordination with the Secretary
of Transportation and the Secretary of the Treasury, shall prescribe such
regulations as necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.
`(i) TERMINATION- This section shall not apply to any property placed in
service 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, 2007.'.
(b) CONFORMING AMENDMENTS-
(1) Section 1016(a) 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:
`(31) to the extent provided in section 30B(g)(5).'.
(2) Section 6501(m) is amended by inserting `30B(g)(10),' after
`30(d)(4),'.
(3) 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:
`Sec. 30B. Alternative motor vehicle credit.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after December 31, 2001, in taxable years ending
after such date.
SEC. 3105. EXTENSION OF DEDUCTION FOR CERTAIN REFUELING PROPERTY.
(a) IN GENERAL- Section 179A(f) (relating to termination) is amended by
striking `2004' and inserting `2007'.
(b) MODIFICATION OF PHASEOUT- Subparagraph (B) of section 179A(b)(1) is
amended--
(1) in clause (i), by striking `2002' and inserting `2005',
(2) in clause (ii), by striking `2003' and inserting `2006', and
(3) in clause (iii), by striking `2004' and inserting `2007'.
SEC. 3106. 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:
`(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, 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) $5,000, if such vehicle is--
`(I) capable of a driving range of at least 70 miles on a single
charge of the vehicle's rechargeable batteries and 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 pounds but not exceeding 14,000 pounds, $10,000.
`(D) In the case of a vehicle with a gross vehicle weight rating
exceeding 14,000 pounds 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)'.
(B) Section 55(c)(2) 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), 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:
`(5) NO DOUBLE BENEFIT- The amount of any deduction or 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 in any
sale or lease contract the specific amount of any credit otherwise allowable
to the entity under this section and reduces the sale or lease price of such
vehicle by an equivalent amount of such credit.
`(7) 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)(3) for such taxable year, such excess shall be allowed as a credit
carryforward for each of the 20 taxable years following such taxable
year.
`(B) RULES- Rules similar to the rules of section 39 shall apply with
respect to the credit carryforward under subparagraph (A).'.
(d) EXTENSION- Section 30(e) (relating to termination) is amended by
striking `2004' and inserting `2007'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after December 31, 2001, in taxable years ending
after such date.
SEC. 3107. TAX CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end the
following new section:
`SEC. 45G. 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 an energy efficient clothes washer described
in subsection (d)(2)(A) or an energy efficient refrigerator described in
subsection (d)(3)(B)(i), and
`(B) $100 in the case of any other energy efficient clothes washer or
energy efficient refrigerator.
`(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 1998, 1999, and
2000.
`(B) CATEGORIES- For purposes of subparagraph (A), the categories
are--
`(i) energy efficient clothes washers described in subsection
(d)(2)(A),
`(ii) energy efficient clothes washers described in subsection
(d)(2)(B),
`(iii) energy efficient refrigerators described in subsection
(d)(3)(B)(i), and
`(iv) energy efficient refrigerators described in subsection
(d)(3)(B)(ii).
`(C) SPECIAL RULE FOR 2001 PRODUCTION- For purposes of determining
eligible production for calendar year 2001--
`(i) only production after the date of the enactment of this section
shall be taken into account under subparagraph (A)(i), and
`(ii) the amount taken into account under subparagraph (A)(ii) shall
be an amount which bears the same ratio to the amount which would (but
for this subparagraph) be taken into account under subparagraph (A)(ii)
as--
`(I) the number of days in calendar year 2001 after the date of
the enactment of this section, bears to
`(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) QUALIFIED ENERGY EFFICIENT APPLIANCE- For purposes of this
section:
`(1) IN GENERAL- The term `qualified energy efficient appliance'
means--
`(A) an energy efficient clothes washer, or
`(B) an energy efficient refrigerator.
`(2) ENERGY EFFICIENT CLOTHES WASHER- The term `energy efficient clothes
washer' means a residential clothes washer, including a residential style
coin operated washer, which is manufactured with--
`(A) a 1.26 MEF or greater, or
`(B) a 1.42 MEF (1.5 MEF for washers produced after 2004) or
greater.
`(3) ENERGY EFFICIENT REFRIGERATOR- The term `energy efficient
refrigerator' means an automatic defrost refrigerator-freezer which--
`(A) has an internal volume of at least 16.5 cubic feet, and
`(i) 10 percent less kw/hr/yr than the energy conservation standards
promulgated by the Department of Energy for refrigerators produced
during 2001, and
`(ii) 15 percent less kw/hr/yr than such energy conservation
standards for refrigerators produced after 2001.
`(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 energy efficient refrigerators described in
subsection (d)(3)(B)(i) produced after 2004, and
`(2) with respect to all other qualified energy efficient appliances
produced after 2006.'.
(b) LIMITATION ON CARRYBACK- Section 39(d) (relating to transition rules)
is amended by adding at the end the following new paragraph:
`(11) 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 45G may be carried to a taxable year ending before the date of the
enactment of section 45G.'.
(c) CONFORMING AMENDMENT- Section 38(b) (relating to general 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 energy efficient appliance credit determined under section
45G(a).'.
(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 45F the following new item:
`Sec. 45G. Energy efficient appliance credit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after the date of the enactment of this Act.
SEC. 3108. 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) is amended by inserting after
section 25D the following new section:
`SEC. 25E. 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 20 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 $2,000.
`(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 $2,000 reduced by the sum of the
credits allowed under subsection (a) to the taxpayer with respect to the
dwelling for all prior taxable years.
`(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 23) and section 27 for the taxable year.
`(c) CARRYFORWARD OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by subsection (b)(3) for such
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 meets the prescriptive criteria
for such component established by the 1998 International Energy Conservation
Code, if--
`(1) such component 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 commences with the taxpayer,
and
`(3) such component reasonably can be expected to remain in use for at
least 5 years.
If the aggregate cost of such components with respect to any dwelling
exceeds $1,000, such components shall be treated as qualified energy
efficiency improvements only if such components are also certified in
accordance with subsection (e) as meeting such criteria.
`(e) CERTIFICATION- The certification described in subsection (d) shall
be--
`(1) determined on the basis of the technical specifications or
applicable ratings (including product labeling requirements) for the
measurement of energy efficiency, based upon energy use or building envelope
component performance, for the energy efficient building envelope
component,
`(2) provided by a local building regulatory authority, a utility, a
manufactured home production inspection primary inspection agency (IPIA), or
an accredited home energy rating system provider who is accredited by or
otherwise authorized to use approved energy performance measurement methods
by the Home Energy Ratings Systems Council or the National Association of
State Energy Officials, and
`(3) made in writing in a manner that specifies in readily verifiable
fashion the energy efficient building envelope components installed and
their respective energy efficiency levels.
`(f) DEFINITIONS AND SPECIAL RULES-
`(1) 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 he
owns, such individual shall be treated as having paid his 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.
`(3) BUILDING ENVELOPE COMPONENT- The term `building envelope component'
means insulation material or system which is specifically and primarily
designed to reduce the heat loss or gain of a dwelling when installed in or
on such dwelling, exterior windows (including skylights) and doors, and
metal roofs with appropriate pigmented coatings which are specifically and
primarily designed to reduce the heat gain of a dwelling when installed in
or on such dwelling.
`(4) 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 CFR 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- This section shall apply to qualified energy
efficiency improvements installed after December 31, 2001 and before January
1, 2007.'.
(b) CONFORMING AMENDMENTS-
(1) Subsection (a) of section 1016 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 25E(g), in the case of amounts
with respect to which a credit has been allowed under section 25E.'.
(2) 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 25D the
following new item:
`Sec. 25E. Energy efficiency improvements to existing homes.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after December 31, 2001.
SEC. 3109. BUSINESS 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) is amended by inserting after section
45G the following new section:
`SEC. 45H. 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 qualified new energy efficient home during
construction of such home.
`(A) IN GENERAL- The credit allowed by this section with respect to a
dwelling shall not exceed $2,000.
`(B) PRIOR CREDIT AMOUNTS ON SAME DWELLING TAKEN INTO ACCOUNT- If a
credit was allowed 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 $2,000 reduced by the sum of the credits allowed under subsection (a)
with respect to the dwelling 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 qualified rehabilitation expenditures (as defined in section 47(c)(2))
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 new energy efficient home, or in the case of a
manufactured home which conforms to Federal Manufactured Home Construction
and Safety Standards (24 CFR 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 appliance.
`(3) QUALIFIED NEW ENERGY EFFICIENT HOME- The term `qualified new energy
efficient home' means a dwelling--
`(A) located in the United States,
`(B) the construction of which is substantially completed after
December 31, 2001,
`(C) the original use of which is as a principal residence (within the
meaning of section 121) which commences with the person who acquires such
dwelling from the eligible contractor, and
`(D) which is certified to have a level of annual heating and cooling
energy consumption that is at least 30 percent below the annual level of
heating and cooling energy consumption of a comparable dwelling
constructed in accordance with the standards of the 1998 International
Energy Conservation Code.
`(4) CONSTRUCTION- The term `construction' includes reconstruction and
rehabilitation.
`(5) ACQUIRE- The term `acquire' includes purchase and, in the case of
reconstruction and rehabilitation, such term includes a binding written
contract for such reconstruction or rehabilitation.
`(6) BUILDING ENVELOPE COMPONENT- The term `building envelope component'
means insulation material or system which is specifically and primarily
designed to reduce the heat loss or gain of a dwelling when installed in or
on such dwelling, exterior windows (including skylights) and doors, and
metal roofs with appropriate pigmented coatings which are specifically and
primarily designed to reduce the heat gain of a dwelling when installed in
or on such dwelling.
`(7) MANUFACTURED HOME INCLUDED- The term `dwelling' includes a
manufactured home conforming to Federal Manufactured Home Construction and
Safety Standards (24 CFR 3280).
`(1) METHOD- A certification described in subsection (c)(3)(D) shall be
determined on the basis of one of the following methods:
`(A) The technical specifications or applicable ratings (including
product labeling requirements) for the measurement of energy efficiency
for the energy efficient building envelope component or energy efficient
heating or cooling appliance, based upon energy use or building envelope
component performance.
`(B) An energy performance measurement method that utilizes computer
software approved by organizations designated by the Secretary.
`(2) PROVIDER- Such certification shall be provided by--
`(A) in the case of a method described in paragraph (1)(A), a local
building regulatory authority, a utility, a manufactured home production
inspection primary inspection agency (IPIA), or an accredited home energy
rating systems provider who is accredited by, or otherwise authorized to
use, approved energy performance measurement methods by the Home Energy
Ratings Systems Council or the National Association of State Energy
Officials, or
`(B) in the case of a method described in paragraph (1)(B), an
individual recognized by an organization designated by the Secretary for
such purposes.
`(3) FORM- Such certification 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 appliances
installed and their respective energy efficiency levels, and in the case of
a method described in subparagraph (B) of paragraph (1), accompanied by
written analysis documenting the proper application of a permissible energy
performance measurement method to the specific circumstances of such
dwelling.
`(A) IN GENERAL- In prescribing regulations under this subsection for
energy performance measurement methods, the Secretary shall prescribe
procedures for calculating annual energy costs for heating and cooling and
cost savings and for the reporting of the results. Such regulations
shall--
`(i) be based on the National Home Energy Rating Technical
Guidelines of the National Association of State Energy Officials, the
Home Energy Rating Guidelines of the Home Energy Rating Systems Council,
or the modified 1998 California Residential ACM manual,
`(ii) provide that any calculation procedures be developed such that
the same energy efficiency measures allow a home to qualify for the
credit under this section regardless of whether the house uses a gas or
oil furnace or boiler or an electric heat pump, and
`(iii) require that any computer software allow for the printing of
the Federal tax forms necessary for the credit under this section and
explanations for the homebuyer of the energy efficient features that
were used to comply with the requirements of this section.
`(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 National Association of State Energy Officials.
`(e) 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.
`(f) APPLICATION OF SECTION- Subsection (a) shall apply to dwellings
purchased during the period beginning on January 1, 2002, and ending on
December 31, 2006.'.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section
38 (relating to current year business credit) 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 thereof the following new
paragraph:
`(17) the new energy efficient home credit determined under section
45H.'.
(c) DENIAL OF DOUBLE BENEFIT- Section 280C (relating to certain expenses
for which credits are allowable) is amended by adding at the end thereof the
following new subsection:
`(d) NEW ENERGY EFFICIENT HOME EXPENSES- No deduction shall be allowed for
that portion of expenses for a new energy efficient 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 45H.'.
(d) LIMITATION ON CARRYBACK- Subsection (d) of section 39 is amended by
adding at the end the following new paragraph:
`(12) 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 45H may be carried back
to any taxable year ending before January 1, 2002.'.
(e) DEDUCTION FOR CERTAIN UNUSED BUSINESS CREDITS- Subsection (c) of
section 196 is amended by striking `and' at the end of paragraph (9), by
striking the period at the end of paragraph (10) and inserting `, and', and by
adding after paragraph (10) the following new paragraph:
`(11) the new energy efficient home credit determined under section
45H.'.
(f) 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 45G the following new item:
`Sec. 45H. New energy efficient home credit.'.
(g) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after December 31, 2001.
SEC. 3110. ALLOWANCE OF DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL BUILDING
PROPERTY.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to itemized
deductions for individuals and corporations) is amended by inserting after
section 179A the following new section:
`SEC. 179B. DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL BUILDING
PROPERTY.
`(a) ALLOWANCE OF DEDUCTION-
`(1) IN GENERAL- There shall be allowed as a deduction an amount equal
to energy efficient commercial building property expenditures made by a
taxpayer for the taxable year.
`(2) MAXIMUM AMOUNT OF DEDUCTION- The amount of energy efficient
commercial building property expenditures taken into account under paragraph
(1) shall not exceed an amount equal to the product of--
`(B) the square footage of the building with respect to which the
expenditures are made.
`(3) YEAR DEDUCTION ALLOWED- The deduction under paragraph (1) shall be
allowed for the taxable year in which the building is placed in
service.
`(b) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY EXPENDITURES- For
purposes of this section, 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--
`(1) for which depreciation is allowable under section 167,
`(2) which is located in the United States, and
`(3) 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 subsection (c)). Such term
includes expenditures for labor costs properly allocable to the onsite
preparation, assembly, or original installation of the property.
`(c) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY- For purposes of
subsection (b)--
`(1) 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 paragraph (2) and certified by qualified
professionals as provided under subsection (f).
`(2) 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 1998 California
Nonresidential ACM Manual. These procedures shall meet the following
requirements:
`(A) 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.
`(B) 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 subsection (a) 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 subsection (a) shall be
a fraction of such expenses based on the performance of less than all
energy-using systems in accordance with subparagraph (C).
`(C) 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.
`(D) The calculational methods under this subparagraph need not comply
fully with section 11 of such Standard 90.1-1999.
`(E) 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.
`(F) 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 1998 California Nonresidential
ACM 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.
`(A) IN GENERAL- Any calculation under this subsection shall be
prepared by qualified computer software.
`(B) QUALIFIED COMPUTER SOFTWARE- For purposes of this paragraph, 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 section, and
`(iii) which provides a notice form which summarizes the energy
efficiency features of the building and its projected annual energy
costs.
`(d) 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 section.
`(e) 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 subsection (c)(3)(B)(iii).
`(f) CERTIFICATION- The Secretary, in consultation with the Secretary of
Energy, shall establish requirements for certification and compliance
procedures similar to the procedures under section 45H(d).
`(g) BASIS REDUCTION- 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).
`(h) TERMINATION- This section shall not apply to property placed in
service after December 31, 2006.'.
(b) CONFORMING AMENDMENTS-
(1) Section 1016(a) 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 inserting the following new paragraph:
`(33) to the extent provided in section 179B(g).'.
(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 adding after section 179A the following new
item:
`Sec. 179B. Deduction for energy efficient commercial building property.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2001.
SEC. 3111. ALLOWANCE OF DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES
AND RETROFITTED QUALIFIED METERS.
(a) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to itemized
deductions for individuals and corporations) is amended by inserting after
section 179B the following new section:
`SEC. 179C. DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES AND
RETROFITTED METERS.
`(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) 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) is amended by striking `or 179B' each place it
appears in the heading and text and inserting `, 179B, or 179C'.
(3) Section 1016(a) 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 inserting after paragraph (33) the following new
paragraph:
`(34) to the extent provided in section 179C(e)(1).'.
(4) Section 1245(a) 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 is amended by inserting after the item relating to section 179B
the following new item:
`Sec. 179C. Deduction for qualified energy management devices and retrofitted
meters.'.
(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.
SEC. 3112. 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.
SEC. 3113. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.
(a) IN GENERAL- Subparagraph (A) of section 48(a)(3) (defining energy
property) 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
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, 2001, 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
`(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)(1)), 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 in paragraph (3)
which follows subparagraph (D) shall not apply to combined heat and
power system property.
`(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 is amended by adding at the end the following new paragraph:
`(13) 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, 2002.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after December 31, 2001.
SEC. 3114. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST REGULAR AND
MINIMUM TAXES.
(a) IN GENERAL- Paragraph (1) of section 26(a) is amended by striking `and
25B' and inserting `25B, 25C, 25D, and 25E'.
(b) CONFORMING AMENDMENTS-
(1) Section 24(b)(3)(B) is amended by striking `and 25B' and inserting
`, 25B, 25C, 25D, and 25E'.
(2) Section 25(e)(1)(C) is amended by inserting `25C, 25D, and 25E'
after `25B,'.
(3) Section 25B(g)(2) is amended by striking `section 23' and inserting
`sections 23, 25C, 25D, and 25E'.
(4) Section 904(h) is amended by striking `and 25B' and inserting `25B,
25C, 25D, and 25E'.
(5) Section 1400C(d) is amended by striking `and 25B' and inserting
`25B, 25C, 25D, and 25E'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2001.
SEC. 3115. PHASEOUT OF 4.3-CENT MOTOR FUEL EXCISE TAXES ON RAILROADS AND
INLAND WATERWAY TRANSPORTATION WHICH REMAIN IN GENERAL FUND.
(1) IN GENERAL- Clause (ii) of section 4041(a)(1)(C) is amended by
striking subclauses (I), (II), and (III) and inserting the following new
subclauses:
`(I) 3.3 cents per gallon after September 30, 2001, and before
January 1, 2005,
`(II) 2.3 cents per gallon after December 31, 2004, and before
January 1, 2007,
`(III) 1.3 cents per gallon after December 31, 2006, and before
January 1, 2009,
`(IV) 0.3 cent per gallon after December 31, 2008, and before
January 1, 2010, and
`(V) 0 after December 31, 2009.'.
(2) CONFORMING AMENDMENTS-
(A) Subsection (d) of section 4041 is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after paragraph (2) the
following new paragraph:
`(3) DIESEL FUEL USED IN TRAINS- In the case of any sale for use (or
use) after September 30, 2010, there is hereby imposed a tax of 0.1 cent per
gallon on any liquid other than gasoline (as defined in section
4083)--
`(A) sold by any person to an owner, lessee, or other operator of a
diesel-powered train for use as a fuel in such train, or
`(B) used by any person as a fuel in a diesel-powered train unless
there was a taxable sale of such fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use of any
liquid if tax was imposed on such liquid under section 4081.'.
(B) Subsection (f) of section 4082 is amended by striking `section
4041(a)(1)' and inserting `subsections (a)(1) and (d)(3) of section
4041'.
(C) Subparagraph (B) of section 6421(f)(3) is amended to read as
follows:
`(B) so much of the rate specified in section 4081(a)(2)(A) as does
not exceed the rate applicable under section 4041(a)(1)(C)(ii).'.
(D) Subparagraph (B) of section 6427(l)(3) is amended to read as
follows:
`(B) so much of the rate specified in section 4081(a)(2)(A) as does
not exceed the rate applicable under section 4041(a)(1)(C)(ii).'.
(b) FUEL USED ON INLAND WATERWAYS- Subparagraph (C) of section 4042(b)(2)
is amended to read as follows:
`(C) The deficit reduction rate is--
`(i) 3.3 cents per gallon after September 30, 2001, and before
January 1, 2005,
`(ii) 2.3 cents per gallon after December 31, 2004, and before
January 1, 2007,
`(iii) 1.3 cents per gallon after December 31, 2006, and before
January 1, 2009,
`(iv) 0.3 cent per gallon after December 31, 2008, and before
January 1, 2010, and
`(v) 0 after December 31, 2009.'.
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
on October 1, 2001.
SEC. 3116. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL
FUEL.
(a) IN GENERAL- Clause (iii) of section 4081(a)(2)(A) is amended by
inserting before the period `(19.7 cents per gallon in the case of a
diesel-water fuel emulsion at least 14 percent of which is water)'.
(b) REFUNDS FOR TAX-PAID PURCHASES-
(1) IN GENERAL- Section 6427 is amended by redesignating subsections (m)
through (p) as subsections (n) through (q), respectively, and by inserting
after subsection (l) the following new subsection:
`(m) DIESEL FUEL USED TO PRODUCE EMULSION-
`(1) IN GENERAL- Except as provided in subsection (k), if any diesel
fuel on which tax was imposed by section 4081 at the regular tax rate is
used by any person in producing an emulsion described in section
4081(a)(2)(A) 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
excess of the regular tax rate over the incentive tax rate with respect to
such fuel.
`(2) DEFINITIONS- For purposes of paragraph (1)--
`(A) REGULAR TAX RATE- The term `regular tax rate' means the aggregate
rate of tax imposed by section 4081 determined without regard to the
parenthetical in section 4081(a)(2)(A).
`(B) INCENTIVE TAX RATE- The term `incentive tax rate' means the
aggregate rate of tax imposed by section 4081 determined with regard to
the parenthetical in section 4081(a)(2)(A).'.
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
on October 1, 2001.
SEC. 3117. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) ALLOWANCE OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY
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:
`(4) the qualifying advanced clean coal technology facility
credit.'.
(b) AMOUNT OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY 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:
`SEC. 48A. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.
`(a) IN GENERAL- For purposes of section 46, the qualifying advanced clean
coal technology facility credit for any taxable year is an amount equal to 10
percent of the qualified investment in a qualifying advanced clean coal
technology facility for such taxable year.
`(b) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY-
`(1) IN GENERAL- For purposes of subsection (a), the term `qualifying
advanced clean coal technology facility' means a facility of the taxpayer
which--
`(A)(i)(I) original use of which commences with the taxpayer,
or
`(II) is a retrofitted or repowered conventional technology facility,
the retrofitting or repowering of which is completed by the taxpayer (but
only with respect to that portion of the basis which is properly
attributable to such retrofitting or repowering), or
`(ii) is acquired through purchase (as defined by section
179(d)(2)),
`(B) is depreciable under section 167,
`(C) has a useful life of not less than 4 years,
`(D) is located in the United States, and
`(E) uses qualifying advanced clean coal technology.
`(2) SPECIAL RULE FOR SALE-LEASEBACKS- For purposes of subparagraph (A)
of paragraph (1), in the case of a facility 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 facility was originally placed
in service, for a period of not less than 12 years,
such facility shall be treated as originally placed in service not
earlier than the date on which such property 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.
`(c) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY- For purposes of this
section--
`(1) IN GENERAL- The term `qualifying advanced clean coal technology'
means, with respect to clean coal technology--
`(i) multiple applications, with a combined capacity of not more
than 5,000 megawatts (4,000 megawatts before 2009), of advanced
pulverized coal or atmospheric fluidized bed combustion
technology--
`(I) installed as a new, retrofit, or repowering
application,
`(II) operated between 2000 and 2012, and
`(III) having a design net heat rate of not more than 9,500 Btu
per kilowatt hour when the design coal has a heat content of more than
9,000 Btu per pound, or a design net heat rate of not more than 9,900
Btu per kilowatt hour when the design coal has a heat content of 9,000
Btu per pound or less,
`(ii) multiple applications, with a combined capacity of not more
than 1,000 megawatts (500 megawatts before 2009 and 750 megawatts before
2013), of pressurized fluidized bed combustion technology--
`(I) installed as a new, retrofit, or repowering
application,
`(II) operated between 2000 and 2016, and
`(III) having a design net heat rate of not more than 8,400 Btu
per kilowatt hour when the design coal has a heat content of more than
9,000 Btu per pound, or a design net heat rate of not more than 9,900
Btu's per kilowatt hour when the design coal has a heat content of
9,000 Btu per pound or less, and
`(iii) multiple applications, with a combined capacity of not more
than 2,000 megawatts (1,000 megawatts before 2009 and 1,500 megawatts
before 2013), of integrated gasification combined cycle technology, with
or without fuel or chemical co-production--
`(I) installed as a new, retrofit, or repowering
application,
`(II) operated between 2000 and 2016,
`(III) having a design net heat rate of not more than 8,550 Btu
per kilowatt hour when the design coal has a heat content of more than
9,000 Btu per pound, or a design net heat rate of not more than 9,900
Btu per kilowatt hour when the design coal has a heat content of 9,000
Btu per pound or less, and
`(IV) having a net thermal efficiency on any fuel or chemical
co-production of not less than 39 percent (higher heating value),
or
`(iv) multiple applications, with a combined capacity of not more
than 2,000 megawatts (1,000 megawatts before 2009 and 1,500 megawatts
before 2013) of technology for the production of
electricity--
`(I) installed as a new, retrofit, or repowering
application,
`(II) operated between 2000 and 2016, and
`(III) having a carbon emission rate which is not more than 85
percent of conventional technology, and
`(B) which reduces the discharge into the atmosphere of 1 or more of
the following pollutants to not more than--
`(i) 5 percent of the potential combustion concentration sulfur
dioxide emissions for a coal with a potential combustion concentration
sulfur emission of 1.2 lb/million btu of heat input or
greater,
`(ii) 15 percent of the potential combustion concentration sulfur
dioxide emissions for a coal with a potential combustion concentration
sulfur emission of less than 1.2 lb/million btu of heat
input,
`(iii) nitrogen oxide emissions of 0.1 lb per million btu of heat
input from other than cyclone-fired boilers,
`(iv) 15 percent of the uncontrolled nitrogen oxide emissions from
cyclone-fired boilers,
`(v) particulate emissions of 0.02 lb per million btu of heat input,
and
`(vi) the emission levels specified in the new source performance
standards of the Clean Air Act (42 U.S.C. 7411) in effect at the time of
retrofitting, repowering, or replacement of the qualifying clean coal
technology unit for the category of source if such level is lower than
the levels specified in clause (i), (ii), (iii), (iv), or
(v).
`(2) EXCEPTIONS- Such term shall not include any projects receiving or
scheduled to receive funding under the Clean Coal Technology Program, or the
Power Plant Improvement administered by the Secretary of the Department of
Energy.
`(d) CLEAN COAL TECHNOLOGY- For purposes of this section, the term `clean
coal technology' means advanced technology which uses coal to produce 75
percent or more of its thermal output as electricity including advanced
pulverized coal or atmospheric fluidized bed combustion, pressurized fluidized
bed combustion, integrated gasification combined cycle with or without fuel or
chemical co-production, and any other technology for the production of
electricity which exceeds the performance of conventional technology.
`(e) CONVENTIONAL TECHNOLOGY- The term `conventional technology'
means--
`(1) coal-fired combustion technology with a design net heat rate of not
less than 9,500 Btu per kilowatt hour (HHV) and a carbon equivalents
emission rate of not more than 0.54 pounds of carbon per kilowatt hour when
the design coal has a heat content of more than 9,000 Btu per pound,
`(2) coal-fired combustion technology with a design net heat rate of not
less than 10,500 Btu per kilowatt hour (HHV) and a carbon equivalents
emission rate of not more than 0.60 pounds of carbon per kilowatt hour when
the design coal has a heat content of 9,000 Btu per pound or less, or
`(3) natural gas-fired combustion technology with a design net heat rate
of not less than 7,500 Btu per kilowatt hour (HHV) and a carbon equivalents
emission rate of not more than 0.24 pounds of carbon per kilowatt
hour.
`(f) DESIGN NET HEAT RATE- The design net heat rate shall be based on the
design annual heat input to and the design annual net electrical output from
the qualifying advanced clean coal technology (determined without regard to
such technology's co-generation of steam).
`(g) SELECTION CRITERIA- Selection criteria for qualifying advanced clean
coal technology facilities--
`(1) shall be established by the Secretary of Energy as part of a
competitive solicitation,
`(2) shall include primary criteria of minimum design net heat rate,
maximum design thermal efficiency, environmental performance, and lowest
cost to the government, and
`(3) shall include supplemental criteria as determined appropriate by
the Secretary of Energy.
`(h) 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 facility placed in service by the
taxpayer during such taxable year.
`(i) 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 (c)
without regard to this section) 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 facility
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
FACILITY 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.
`(j) 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.
`(k) TERMINATION- This section shall not apply with respect to any
qualified investment made after December 31, 2011.
`(l) NATIONAL LIMITATION-
`(1) IN GENERAL- Notwithstanding any other provision of this section,
the term `qualifying advanced clean coal technology facility' shall include
such a facility only to the extent that such facility is allocated a portion
of the national megawatt limitation under this subsection.
`(2) NATIONAL MEGAWATT LIMITATION- The national megawatt limitation
under this subsection is 7,500 megawatts.
`(3) ALLOCATION OF LIMITATION- The national megawatt limitation shall be
allocated by the Secretary under rules prescribed by the Secretary. Not
later than 6 months after the date of the enactment of this subsection, the
Secretary shall prescribe such regulations as may be necessary or
appropriate to carry out the purposes of this section, including
regulations--
`(A) to limit which facility qualifies as `qualified advanced clean
coal technology' in subsection (c) to particular facilities, a portion of
particular facilities, or a portion of the production from particular
facilities, so that when all such facilities (or portions thereof) are
placed in service over the ten year period in section (k), the combination
of facilities approved for tax credits (and/or portions of facilities
approved for tax credits) will not exceed a combined capacity of 7,500
megawatts;
`(B) to provide a certification process in consultation with the
Secretary of Energy under subsection (g) that will approve and allocate
the 7,500 megawatts of available tax credits authority--
`(i) to encourage that facilities with the highest thermal
efficiencies and environmental performance be placed in service as soon
as possible;
`(ii) to allocate credits to taxpayers that have a definite and
credible plan for placing into commercial operation a qualifying
advanced clean coal technology facility, including--
`(II) contractual commitments for procurement and
construction,
`(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 shall determine are
appropriate;
`(iii) to allocate credits to a portion of a facility (or a portion
of the production from a facility) if the Secretary determines that such
an allocation should maximize the amount of efficient production
encouraged with the available tax credits;
`(C) to set progress requirements and conditional approvals so that
credits for approved projects that become unlikely to meet the necessary
conditions that can be reallocated by the Secretary to other
projects;
`(D) to reallocate credits that are not allocated to 1 technology
described in clauses (i) through (iv) of subsection (c)(1)(A) because an
insufficient number of qualifying facilities requested credits for one
technology, to another technology described in another subparagraph of
subsection (c) in order to maximize the amount of energy efficient
production encouraged with the available tax credits; and
`(E) to provide taxpayers with opportunities to correct administrative
errors and omissions with respect to allocations and recordkeeping within
a reasonable period after their discovery, taking into account the
availability of regulations and other administrative guidance from the
Secretary.'.
(c) RECAPTURE- Section 50(a) (relating to other special rules) is amended
by adding at the end the following:
`(6) SPECIAL RULES RELATING TO QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY
FACILITY- 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 facility (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 facility disposed of, and whose
denominator is the total number of years over which such facility would
otherwise have been subject to depreciation. For purposes of the preceding
sentence, the year of disposition of the qualifying advanced clean coal
technology facility property 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
facility under section 48A, except that the amount of the increase in tax
under subparagraph (A) of this paragraph shall be substituted in lieu of
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 facility.'.
(d) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules) is
amended by adding at the end the following:
`(14) 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 facility
credit determined under section 48A may be carried back to a taxable year
ending before January 1, 2002.'.
(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:
`(iv) the portion of the basis of any qualifying advanced clean coal
technology facility attributable to any qualified investment (as defined
by section 48A(c)).'.
(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) SPECIAL RULE FOR QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY
FACILITIES- Paragraphs (1) and (2) shall not apply to any property with
respect to the credit determined 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:
`Sec. 48A. Qualifying advanced clean coal technology facility credit.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
periods after December 31, 2001, 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. 3118. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY-
Subpart D of part IV of subchapter A of chapter 1 (relating to business
related credits) is amended by adding after section 45J the following:
`SEC. 45K. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
`(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
`(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 facility during the 10-year period beginning
on the date the facility was originally placed in service.
`(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 facility shall be
determined as follows:
`(1) Where the design coal has a heat content of more than 9,000 Btu per
pound:
`(A) In the case of a facility originally placed in service before
2009, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: 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 not more than 8,750 $.0010 $.0010.
------------------------------------------------------------------------------------------------------------------------------
`(B) In the case of a facility originally placed in service after 2008
and before 2013, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: 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 not more than 8,350 $.0075 $.0055.
------------------------------------------------------------------------------------------------------------------------------
`(C) In the case of a facility originally placed in service after 2012
and before 2017, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
------------------------------------------------------------------------------------------------------------------------------
Not more than 7,380 $.0140 $.01
More than 7,380 but not more than 7,720 $.0120 $.0090.
------------------------------------------------------------------------------------------------------------------------------
`(2) Where the design coal has a heat content of not more than 9,000 Btu
per pound:
`(A) In the case of a facility originally placed in service before
2009, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
------------------------------------------------------------------------------------------------------------------------------
Not more than 8,500 $.0060 $.0038
More than 8,500 but not more than 8,650 $.0025 $.0010
More than 8,650 but not more than 8,750 $.0010 $.0010.
------------------------------------------------------------------------------------------------------------------------------
`(B) In the case of a facility originally placed in service after 2008
and before 2013, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
------------------------------------------------------------------------------------------------------------------------------
Not more than 8,000 $.0105 $.009
More than 8,000 but not more than 8,250 $.0085 $.0068
More than 8,250 but not more than 8,400 $.0075 $.0055.
------------------------------------------------------------------------------------------------------------------------------
`(C) In the case of a facility originally placed in service after 2012
and before 2017, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net heat rate, Btu/kWh (HHV) is equal to: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
------------------------------------------------------------------------------------------------------------------------------
Not more than 7,800 $.0140 $.0115
More than 7,800 but not more than 7,950 $.0120 $.0090.
------------------------------------------------------------------------------------------------------------------------------
`(3) Where the clean coal technology facility is producing fuel or
chemicals:
`(A) In the case of a facility originally placed in service before
2009, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net thermal efficiency (HHV) is equal to: 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 facility originally placed in service after 2008
and before 2013, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net thermal efficiency (HHV) is equal to: The applicable amount is:
For 1st 5 years of such service For 2d 5 years of such service
------------------------------------------------------------------------------------------------------------------------------
Not less than 43.9 percent $.0105 $.009
Less than 43.9 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 facility originally placed in service after 2012
and before 2017, if--
------------------------------------------------------------------------------------------------------------------------------
`The facility design net thermal efficiency (HHV) is equal to: 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 43.6 percent $.0120 $.0090.
------------------------------------------------------------------------------------------------------------------------------
`(c) INFLATION ADJUSTMENT FACTOR- For calendar years after 2001, each
amount in paragraphs (1), (2), and (3) 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 48A shall have the meaning given such term in section 48A.
`(2) APPLICABLE RULES- The rules of paragraphs (3), (4), and (5) of
section 45 shall apply.
`(3) INFLATION ADJUSTMENT FACTOR- 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 2001.
`(4) 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.'.
(b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b) 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:
`(20) the qualifying advanced clean coal technology production credit
determined under section 45K(a).'.
(c) TRANSITIONAL RULE- Section 39(d) (relating to transitional rules) is
amended by adding after paragraph (14) the following:
`(15) NO CARRYBACK OF SECTION 45K 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 45K may be carried back to a taxable year
ending before the date of the enactment of section 45K.'.
(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the following:
`Sec. 45K. Credit for production from qualifying advanced clean coal
technology.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
production after the date of the enactment of this Act.
TITLE II--RELIABILITY
SEC. 3201. 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 is amended
by adding after paragraph (15) 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:
`(C)(ii)
--10'.
(d) ALTERNATIVE MINIMUM TAX EXCEPTION- Subparagraph (B) of section
56(a)(1) is amended by inserting before the period the following: `or in
clause (ii) of section 168(e)(3)(C)'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act.
SEC. 3202. NATURAL GAS DISTRIBUTION LINES TREATED AS 10-YEAR PROPERTY.
(a) IN GENERAL- Subparagraph (D) of section 168(e)(3) (relating to
classification of certain property) is amended by striking `and' at the end of
clause (i), by striking the period at the end of clause (ii) and by inserting
`, and', and by adding at the end the following new clause:
`(iii) any natural gas distribution line.'.
(b) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B) is
amended by inserting after the item relating to subparagraph (D)(ii) the
following:
`(D)(iii)
--20'.
(c) ALTERNATIVE MINIMUM TAX EXCEPTION- Subparagraph (B) of section
56(a)(1) is amended by inserting before the period the following: `or in
clause (iii) of section 168(e)(3)(D)'.
(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.
SEC. 3203. PETROLEUM REFINING PROPERTY TREATED AS 7-YEAR PROPERTY.
(a) IN GENERAL- Subparagraph (C) of section 168(e)(3) (relating to
classification of certain property), as amended by section 3201, is amended by
striking `and' at the end of clause (ii), by redesignating clause (iii) as
clause (iv), and by inserting after clause (ii) the following new clause:
`(iii) any property used for the distillation, fractionation, and
catalytic cracking of crude petroleum into gasoline and its other
components, and'.
(b) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B), as
amended by section 3201, is amended by inserting after the item relating to
subparagraph (C)(ii) the following:
`(C)(iii)
--10'.
(c) ALTERNATIVE MINIMUM TAX EXCEPTION- Subparagraph (B) of section
56(a)(1), as amended by section 3201, is amended by inserting `or (iii)' after
`clause (ii)'.
(d) EFFECTIVE DATE- The amendment made by this section shall apply to
property placed in service after the date of the enactment of this Act.
SEC. 3204. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING WITH
ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
(a) IN GENERAL- Section 179(b) (relating to election to expense certain
depreciable business assets) is amended by adding at the end the following new
paragraph:
`(5) LIMITATION FOR SMALL BUSINESS REFINERS-
`(A) IN GENERAL- In the case of a small business refiner electing to
expense qualified costs, in lieu of the dollar limitations in paragraph
(1), the limitation on the aggregate costs which may be taken into account
under subsection (a) for any taxable year shall not exceed 75 percent of
the qualified costs.
`(B) QUALIFIED COSTS- For purposes of this paragraph, the term
`qualified costs' means costs paid or incurred by a small business refiner
for the purpose of complying with the Highway Diesel Fuel Sulfur Control
Requirements of the Environmental Protection Agency.
`(C) SMALL BUSINESS REFINER- For purposes of this paragraph, the term
`small business refiner' means, with respect to any taxable year, a
refiner which, within the refining operations of the business, employs not
more than 1,500 employees on business days during such taxable year
performing services in the refining operations of such businesses and has
an average total capacity of 155,000 barrels per day or less.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
expenses paid or incurred after the date of the enactment of this Act.
SEC. 3205. ENVIRONMENTAL TAX CREDIT.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end the
following new section:
`SEC. 45I. 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.
`(b) MAXIMUM CREDIT- For any small business refiner, the aggregate amount
allowable as a credit under subsection (a) for any taxable year with respect
to any facility shall not exceed 25 percent of the qualified capital costs
incurred by such small business refiner with respect to such facility not
taken into account in determining the credit under subsection (a) for any
preceding taxable year.
`(c) DEFINITIONS- For purposes of this section--
`(1) SMALL BUSINESS REFINER- The term `small business refiner' means,
with respect to any taxable year, a refiner which, within the refining
operations of the business, employs not more than 1,500 employees on
business days during such taxable year performing services in the refining
operations of such businesses and has an average total capacity of 155,000
barrels per day or less.
`(2) QUALIFIED CAPITAL COSTS- The term `qualified capital costs' means,
with respect to any facility, those costs paid or incurred during the
applicable period for compliance with the applicable EPA regulations with
respect to such facility, including expenditures for the construction of new
process operation units or the dismantling and reconstruction of existing
process units to be used in the production of 15 parts per million or less
sulfur diesel fuel, associated adjacent or offsite equipment (including
tankage, catalyst, and power supply), engineering, construction period
interest, and sitework.
`(3) APPLICABLE EPA REGULATIONS- The term `applicable EPA regulations'
means the Highway Diesel Fuel Sulfur Control Requirements of the
Environmental Protection Agency.
`(4) APPLICABLE PERIOD- The term `applicable period' means, with respect
to any facility, the period beginning on the day 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.
`(d) REDUCTION IN BASIS- For purposes of this subtitle, if a credit is
determined under this section with respect to any property by reason of
qualified capital costs, the basis of such property shall be reduced by the
amount of the credit so determined.
`(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 a facility, the small business refiner must obtain
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.
`(4) RECAPTURE- Notwithstanding subsection (f), failure to obtain
certification under paragraph (1) constitutes a recapture event under
subsection (f) with an applicable percentage of 100 percent.
`(f) RECAPTURE OF ENVIRONMENTAL TAX CREDIT-
`(1) IN GENERAL- Except as provided in subsection (e), if, as of the
close of any taxable year, there is a recapture event with respect to any
facility of the small business refiner, then the tax of such refiner under
this chapter for such taxable year shall be increased by an amount equal to
the product of--
`(A) the applicable recapture percentage, and
`(B) the aggregate decrease in the credits allowed under section 38
for all prior taxable years which would have resulted if the qualified
capital costs of the taxpayer described in subsection (c)(2) with respect
to such facility had been zero.
`(2) APPLICABLE RECAPTURE PERCENTAGE-
`(A) IN GENERAL- For purposes of this subsection, the applicable
recapture percentage shall be determined from the following
table:
--The applicable
--recapture
`If the recapture event occurs in:
--percentage is:
Year 1
--100
Year 2
--80
Year 3
--60
Year 4
--40
Year 5
--20
Years 6 and thereafter
--0.
`(B) YEARS- For purposes of subparagraph (A), year 1 shall begin on
the first day of the taxable year in which the qualified capital costs
with respect to a facility described in subsection (c)(2) are paid or
incurred by the taxpayer.
`(3) RECAPTURE EVENT DEFINED- For purposes of this subsection, the term
`recapture event' means--
`(A) FAILURE TO COMPLY- The failure by the small business refiner to
meet the applicable EPA regulations within the applicable period with
respect to the facility.
`(B) CESSATION OF OPERATION- The cessation of the operation of the
facility as a facility which produces 15 parts per million or less sulfur
diesel after the applicable period.
`(C) Change in ownership-
`(i) IN GENERAL- Except as provided in clause (ii), the disposition
of a small business refiner's interest in the facility with respect to
which the credit described in subsection (a) was allowable.
`(ii) AGREEMENT TO ASSUME RECAPTURE LIABILITY- Clause (i) shall not
apply if the person acquiring such interest in the facility agrees in
writing to assume the recapture liability of the person disposing of
such interest in effect immediately before such disposition. In the
event of such an assumption, the person acquiring the interest in the
facility shall be treated as the taxpayer for purposes of assessing any
recapture liability (computed as if there had been no change in
ownership).
`(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.
`(C) NO RECAPTURE BY REASON OF CASUALTY LOSS- The increase in tax
under this subsection shall not apply to a cessation of operation of the
facility by reason of a casualty loss to the extent such loss is restored
by reconstruction or replacement within a reasonable period established by
the Secretary.
`(g) 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) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section
38 (relating to general business credit) 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) in the case of a small business refiner, the environmental tax
credit determined under section 45I(a).'.
(c) DENIAL OF DOUBLE BENEFIT- Section 280C (relating to certain expenses
for which credits are allowable) 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 45I(a).'.
(d) BASIS ADJUSTMENT- Section 1016(a) (relating to adjustments to basis)
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) in the case of a facility with respect to which a credit was
allowed under section 45I, to the extent provided in section 45I(d).'.
(e) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:
`Sec. 45I. Environmental tax credit.'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
expenses paid or incurred after the date of the enactment of this Act.
SEC. 3206. 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 a related person
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 the related person for the taxable year exceed 75,000 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, 2001.
SEC. 3207. TAX-EXEMPT BOND FINANCING OF CERTAIN ELECTRIC FACILITIES.
(a) IN GENERAL- Subpart A of part IV of subchapter B of chapter 1
(relating to tax exemption requirements for State and local bonds) is amended
by inserting a