HR 4 EAS
In the Senate of the United States,
April 25, 2002.
Resolved, That the bill from the House of Representatives (H.R. 4)
entitled `An Act to enhance energy conservation, research and development and to
provide for security and diversity in the energy supply for the American people,
and for other purposes.', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the `Energy Policy Act of 2002'.
SEC. 2. TABLE OF CONTENTS.
Sec. 2. Table of contents.
DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND
TRANSMISSION
TITLE I--REGIONAL COORDINATION
Sec. 101. Policy on regional coordination.
Sec. 102. Federal support for regional coordination.
TITLE II--ELECTRICITY
Subtitle A--Amendments to the Federal Power Act
Sec. 202. Electric utility mergers.
Sec. 203. Market-based rates.
Sec. 204. Refund effective date.
Sec. 205. Open access transmission by certain utilities.
Sec. 206. Electric reliability standards.
Sec. 207. Market transparency rules.
Sec. 208. Access to transmission by intermittent
generators.
Sec. 210. Electric power transmission systems.
Subtitle B--Amendments to the Public Utility Holding Company
Act
Sec. 223. Repeal of the Public Utility Holding Company Act of
1935.
Sec. 224. Federal access to books and records.
Sec. 225. State access to books and records.
Sec. 226. Exemption authority.
Sec. 227. Affiliate transactions.
Sec. 229. Effect on other regulations.
Sec. 231. Savings provisions.
Sec. 232. Implementation.
Sec. 233. Transfer of resources.
Sec. 234. Inter-agency review of competition in the wholesale and
retail markets for electric energy.
Sec. 235. GAO study on implementation.
Sec. 236. Effective date.
Sec. 237. Authorization of appropriations.
Sec. 238. Conforming amendments to the Federal Power Act.
Subtitle C--Amendments to the Public Utility Regulatory Policies Act of
1978
Sec. 241. Real-time pricing and time-of-use metering
standards.
Sec. 242. Adoption of additional standards.
Sec. 243. Technical assistance.
Sec. 244. Cogeneration and small power production purchase and sale
requirements.
Subtitle D--Consumer Protections
Sec. 251. Information disclosure.
Sec. 252. Consumer privacy.
Sec. 253. Office of Consumer Advocacy.
Sec. 254. Unfair trade practices.
Sec. 255. Applicable procedures.
Sec. 256. Federal Trade Commission enforcement.
Sec. 257. State authority.
Sec. 258. Application of subtitle.
Subtitle E--Renewable Energy and Rural Construction Grants
Sec. 261. Renewable energy production incentive.
Sec. 262. Assessment of renewable energy resources.
Sec. 263. Federal purchase requirement.
Sec. 264. Renewable portfolio standard.
Sec. 265. Renewable energy on Federal land.
Subtitle F--General Provisions
Sec. 271. Change 3 cents to 1.5 cents.
Sec. 272. Bonneville Power Administration bonds.
TITLE III--HYDROELECTRIC RELICENSING
Sec. 301. Alternative conditions and fishways.
TITLE IV--INDIAN ENERGY
Sec. 401. Comprehensive Indian energy program.
Sec. 402. Office of Indian Energy Policy and Programs.
Sec. 403. Conforming amendments.
Sec. 404. Siting energy facilities on tribal lands.
Sec. 405. Indian Mineral Development Act review.
Sec. 406. Renewable energy study.
Sec. 407. Federal Power Marketing Administrations.
Sec. 408. Feasibility study of combined wind and hydropower
demonstration project.
TITLE V--NUCLEAR POWER
Subtitle A--Price-Anderson Act Reauthorization
Sec. 502. Extension of indemnification authority.
Sec. 503. Department of Energy liability limit.
Sec. 504. Incidents outside the United States.
Sec. 506. Inflation adjustment.
Sec. 507. Civil penalties.
Sec. 508. Treatment of modular reactors.
Sec. 509. Effective date.
Subtitle B--Miscellaneous Provisions
Sec. 512. Reauthorization of thorium reimbursement.
Sec. 513. Fast Flux Test Facility.
Sec. 514. Nuclear Power 2010.
Sec. 515. Office of Spent Nuclear Fuel Research.
Sec. 516. Decommissioning pilot program.
Subtitle C--Growth of Nuclear Energy
Sec. 521. Combined license periods.
Subtitle D--NRC Regulatory Reform
Sec. 531. Antitrust review.
Sec. 532. Decommissioning.
Subtitle E--NRC Personnel Crisis
Sec. 541. Elimination of pension offset.
Sec. 542. NRC training program.
DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION
TITLE VI--OIL AND GAS PRODUCTION
Sec. 601. Permanent authority to operate the Strategic Petroleum
Reserve.
Sec. 602. Federal onshore leasing programs for oil and
gas.
Sec. 603. Oil and gas lease acreage limitations.
Sec. 604. Orphaned and abandoned wells on Federal land.
Sec. 605. Orphaned and abandoned oil and gas well
program.
Sec. 606. Offshore development.
Sec. 607. Coalbed methane study.
Sec. 608. Fiscal policies to maximize recovery of domestic oil and
gas resources.
Sec. 609. Strategic Petroleum Reserve.
Sec. 610. Hydraulic fracturing.
Sec. 611. Authorization of appropriations.
Sec. 612. Preservation of oil and gas resource data.
Sec. 613. Resolution of Federal resource development conflicts in
the Powder River Basin.
TITLE VII--NATURAL GAS PIPELINES
Subtitle A--Alaska Natural Gas Pipeline
Sec. 704. Issuance of certificate of public convenience and
necessity.
Sec. 705. Environmental reviews.
Sec. 706. Pipeline expansion.
Sec. 707. Federal Coordinator.
Sec. 708. Judicial review.
Sec. 709. State jurisdiction over in-State delivery of natural
gas.
Sec. 710. Loan guarantee.
Sec. 711. Study of alternative means of construction.
Sec. 712. Clarification of ANGTA status and authorities.
Sec. 714. Sense of the Senate.
Sec. 715. Alaskan pipeline construction training program.
Subtitle B--Operating Pipelines
Sec. 721. Environmental review and permitting of natural gas
pipeline projects.
Subtitle C--Pipeline Safety
Part I--Short Title; Amendment of Title 49
Sec. 741. Short title; amendment of title 49, United States
Code.
Part II--Pipeline Safety Improvement Act of 2002
Sec. 761. Implementation of Inspector General
recommendations.
Sec. 762. NTSB safety recommendations.
Sec. 763. Qualifications of pipeline personnel.
Sec. 764. Pipeline integrity inspection program.
Sec. 766. Public education, emergency preparedness, and community
right-to-know.
Sec. 768. State oversight role.
Sec. 769. Improved data and data availability.
Sec. 770. Research and development.
Sec. 771. Pipeline integrity technical advisory
committee.
Sec. 772. Authorization of appropriations.
Sec. 773. Operator assistance in investigations.
Sec. 774. Protection of employees providing pipeline safety
information.
Sec. 775. State pipeline safety advisory committees.
Sec. 776. Fines and penalties.
Sec. 777. Study of rights-of-way.
Sec. 778. Study of natural gas reserve.
Sec. 779. Study and report on natural gas pipeline and storage
facilities in New England.
Part III--Pipeline Security Sensitive Information
Sec. 781. Meeting community right-to-know without security
risks.
Sec. 782. Technical assistance for security of pipeline
facilities.
Sec. 783. Criminal penalties for damaging or destroying a
facility.
DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING
EFFICIENCY
TITLE VIII--FUELS AND VEHICLES
Subtitle A--CAFE Standards, Alternative Fuels, and Advanced
Technology
Sec. 801. Increased fuel economy standards.
Sec. 802. Expedited procedures for congressional increase in fuel
economy standards.
Sec. 803. Revised considerations for decisions on maximum feasible
average fuel economy.
Sec. 804. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 805. Procurement of alternative fueled and hybrid light duty
trucks.
Sec. 806. Use of alternative fuels.
Sec. 807. Hybrid electric and fuel cell vehicles.
Sec. 808. Diesel fueled vehicles.
Sec. 809. Fuel cell demonstration.
Sec. 810. Bus replacement.
Sec. 811. Average fuel economy standards for pickup
trucks.
Sec. 812. Exception to HOV passenger requirements for alternative
fuel vehicles.
Sec. 813. Data collection.
Sec. 814. Green school bus pilot program.
Sec. 815. Fuel cell bus development and demonstration
program.
Sec. 816. Authorization of appropriations.
Sec. 817. Temporary biodiesel credit expansion.
Sec. 818. Neighborhood electric vehicles.
Sec. 819. Credit for hybrid vehicles, dedicated alternative fuel
vehicles, and infrastructure.
Sec. 820. Renewable content of motor vehicle fuel.
Sec. 820A. Federal agency ethanol-blended gasoline and biodiesel
purchasing requirement.
Sec. 820B. Commercial byproducts from municipal solid waste loan
guarantee program.
Subtitle B--Additional Fuel Efficiency Measures
Sec. 821. Fuel efficiency of the Federal fleet of
automobiles.
Sec. 822. Idling reduction systems in heavy duty
vehicles.
Sec. 823. Conserve By Bicycling program.
Sec. 824. Fuel cell vehicle program.
Subtitle C--Federal Reformulated Fuels
Sec. 832. Leaking underground storage tanks.
Sec. 833. Authority for water quality protection from
fuels.
Sec. 834. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 835. Public health and environmental impacts of fuels and fuel
additives.
Sec. 836. Analyses of motor vehicle fuel changes.
Sec. 837. Additional opt-in areas under reformulated gasoline
program.
Sec. 838. Federal enforcement of State fuels
requirements.
Sec. 839. Fuel system requirements harmonization study.
Sec. 840. Review of Federal procurement initiatives relating to use
of recycled products and fleet and transportation efficiency.
TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME
CONSUMERS
Subtitle A--Low Income Assistance and State Energy Programs
Sec. 901. Increased funding for LIHEAP, weatherization assistance,
and State energy grants.
Sec. 902. State energy programs.
Sec. 903. Energy efficient schools.
Sec. 904. Low income community energy efficiency pilot
program.
Sec. 905. Energy efficient appliance rebate programs.
Subtitle B--Federal Energy Efficiency
Sec. 911. Energy management requirements.
Sec. 912. Energy use measurement and accountability.
Sec. 913. Federal building performance standards.
Sec. 914. Procurement of energy efficient products.
Sec. 915. Repeal of energy savings performance contract
sunset.
Sec. 916. Energy savings performance contract
definitions.
Sec. 917. Review of energy savings performance contract
program.
Sec. 918. Federal Energy Bank.
Sec. 919. Energy and water saving measures in congressional
buildings.
Sec. 920. Increased use of recovered material in federally funded
projects involving procurement of cement or concrete.
Subtitle C--Industrial Efficiency and Consumer Products
Sec. 921. Voluntary commitments to reduce industrial energy
intensity.
Sec. 922. Authority to set standards for commercial
products.
Sec. 923. Additional definitions.
Sec. 924. Additional test procedures.
Sec. 925. Energy labeling.
Sec. 926. Energy Star Program.
Sec. 927. Energy conservation standards for central air-conditioners
and heat pumps.
Sec. 928. Energy conservation standards for additional consumer and
commercial products.
Sec. 929. Consumer education on energy efficiency benefits of
air-conditioning, heating, and ventilation maintenance.
Sec. 930. Study of energy efficiency standards.
Subtitle D--Housing Efficiency
Sec. 931. Capacity building for energy efficient, affordable
housing.
Sec. 932. Increase of CDBG public services cap for energy
conservation and efficiency activities.
Sec. 933. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 934. Public housing capital fund.
Sec. 935. Grants for energy-conserving improvements for assisted
housing.
Sec. 936. North American Development Bank.
Sec. 938. Energy-efficient appliances.
Sec. 939. Energy efficiency standards.
Sec. 940. Energy strategy for HUD.
Subtitle E--Rural and Remote Communities
Sec. 942. Findings and purpose.
Sec. 944. Authorization of appropriations.
Sec. 945. Statement of activities and review.
Sec. 946. Eligible activities.
Sec. 947. Allocation and distribution of funds.
Sec. 948. Rural and remote community electrification
grants.
Sec. 949. Additional authorization of appropriations.
Sec. 950. Rural recovery community development block
grants.
DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE
POLICY
TITLE X--NATIONAL CLIMATE CHANGE POLICY
Subtitle A--Sense of Congress
Sec. 1001. Sense of Congress on climate change.
Subtitle B--Climate Change Strategy
Sec. 1013. National climate change strategy.
Sec. 1014. Office of National Climate Change Policy.
Sec. 1015. Office of Climate Change Technology.
Sec. 1016. Additional offices and activities.
Subtitle C--Science and Technology Policy
Sec. 1021. Global climate change in the Office of Science and
Technology Policy.
Sec. 1022. Director of Office of Science and Technology Policy
Functions.
Subtitle D--Miscellaneous Provisions
Sec. 1031. Additional information for regulatory review.
Sec. 1032. Greenhouse gas emissions from Federal
facilities.
TITLE XI--NATIONAL GREENHOUSE GAS DATABASE
Sec. 1103. Establishment of memorandum of agreement.
Sec. 1104. National Greenhouse Gas Database.
Sec. 1105. Greenhouse gas reduction reporting.
Sec. 1106. Measurement and verification.
Sec. 1107. Independent reviews.
Sec. 1108. Review of participation.
Sec. 1110. Report on statutory changes and harmonization.
Sec. 1111. Authorization of appropriations.
DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING
TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS
Sec. 1204. Construction with other laws.
Subtitle A--Energy Efficiency
Sec. 1211. Enhanced energy efficiency research and
development.
Sec. 1212. Energy efficiency science initiative.
Sec. 1213. Next generation lighting initiative.
Sec. 1214. Railroad efficiency.
Sec. 1215. High power density industry program.
Sec. 1216. Research regarding precious metal catalysis.
Subtitle B--Renewable Energy
Sec. 1221. Enhanced renewable energy research and
development.
Sec. 1222. Bioenergy programs.
Sec. 1223. Hydrogen research and development.
Subtitle C--Fossil Energy
Sec. 1231. Enhanced fossil energy research and
development.
Sec. 1232. Power plant improvement initiative.
Sec. 1233. Research and development for advanced safe and efficient
coal mining technologies.
Sec. 1234. Ultra-deepwater and unconventional resource exploration
and production technologies.
Sec. 1235. Research and development for new natural gas
transportation technologies.
Sec. 1236. Authorization of appropriations for Office of Arctic
Energy.
Sec. 1237. Clean coal technology loan.
Subtitle D--Nuclear Energy
Sec. 1241. Enhanced nuclear energy research and
development.
Sec. 1242. University nuclear science and engineering
support.
Sec. 1243. Nuclear energy research initiative.
Sec. 1244. Nuclear energy plant optimization program.
Sec. 1245. Nuclear energy technology development program.
Subtitle E--Fundamental Energy Science
Sec. 1251. Enhanced programs in fundamental energy
science.
Sec. 1252. Nanoscale science and engineering research.
Sec. 1253. Advanced scientific computing for energy
missions.
Sec. 1254. Fusion energy sciences program and planning.
Subtitle F--Energy, Safety, and Environmental Protection
Sec. 1261. Critical energy infrastructure protection research and
development.
Sec. 1262. Research and demonstration for remediation of groundwater
from energy activities.--
TITLE XIII--CLIMATE CHANGE SCIENCE AND TECHNOLOGY
Subtitle A--Department of Energy Programs
Sec. 1301. Department of Energy global change research.
Sec. 1302. Amendments to the Federal Nonnuclear Research and
Development Act of 1974.
Subtitle B--Department of Agriculture Programs
Sec. 1311. Carbon sequestration basic and applied
research.
Sec. 1312. Carbon sequestration demonstration projects and
outreach.
Sec. 1313. Carbon storage and sequestration accounting
research.
Subtitle C--International Energy Technology Transfer
Sec. 1321. Clean energy technology exports program.
Sec. 1322. International energy technology deployment
program.
Subtitle D--Climate Change Science and Information
Part I--Amendments to the Global Change Research Act of 1990
Sec. 1331. Amendment of Global Change Research Act of
1990.
Sec. 1332. Changes in definitions.
Sec. 1333. Change in committee name and structure.
Sec. 1334. Change in national global change research
plan.
Sec. 1335. Integrated Program Office.
Sec. 1336. Research grants.
Sec. 1337. Evaluation of information.
Part II--National Climate Services and Monitoring
Sec. 1341. Amendment of National Climate Program Act.
Sec. 1342. Changes in findings.
Sec. 1343. Tools for regional planning.
Sec. 1344. Authorization of appropriations.
Sec. 1345. National Climate Service Plan.
Sec. 1346. International Pacific research and
cooperation.
Sec. 1347. Reporting on trends.
Sec. 1348. Arctic research and policy.
Sec. 1349. Abrupt climate change research.
Part III--Ocean and Coastal Observing System
Sec. 1351. Ocean and coastal observing system.
Sec. 1352. Authorization of appropriations.
Subtitle E--Climate Change Technology
Sec. 1361. NIST greenhouse gas functions.
Sec. 1362. Development of new measurement technologies.
Sec. 1363. Enhanced environmental measurements and
standards.
Sec. 1364. Technology development and diffusion.
Sec. 1365. Authorization of appropriations.
Subtitle F--Climate Adaptation and Hazards Prevention
Part I--Assessment and Adaptation
Sec. 1371. Regional climate assessment and adaptation
program.
Sec. 1372. Coastal vulnerability and adaptation.
Sec. 1373. Arctic research center.
Part II--Forecasting and Planning Pilot Programs
Sec. 1381. Remote sensing pilot projects.
Sec. 1382. Database establishment.
Sec. 1383. Air quality research, forecasts and warnings.
Sec. 1385. Authorization of appropriations.
TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS
Sec. 1402. Availability of funds.
Sec. 1404. Merit review of proposals.
Sec. 1405. External technical review of departmental
programs.
Sec. 1406. Improved coordination and management of civilian science
and technology programs.
Sec. 1407. Improved coordination of technology transfer
activities.
Sec. 1408. Technology infrastructure program.
Sec. 1409. Small business advocacy and assistance.
Sec. 1410. Other transactions.
Sec. 1411. Mobility of scientific and technical
personnel.
Sec. 1412. National Academy of Sciences report.
Sec. 1413. Report on technology readiness and barriers to technology
transfer.
Sec. 1414. United States-Mexico energy technology
cooperation.
TITLE XV--PERSONNEL AND TRAINING
Sec. 1501. Workforce trends and traineeship grants.
Sec. 1502. Postdoctoral and senior research fellowships in energy
research.
Sec. 1503. Training guidelines for electric energy industry
personnel.
Sec. 1504. National Center on Energy Management and Building
Technologies.
Sec. 1505. Improved access to energy-related scientific and
technical careers.
Sec. 1506. National power plant operations technology and education
center.
Sec. 1507. Federal mine inspectors.
DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES
TITLE XVI--TECHNOLOGY ASSESSMENT
Sec. 1601. National Science and Technology Assessment
Service.
TITLE XVII--STUDIES
Sec. 1701. Regulatory reviews.
Sec. 1702. Assessment of dependence of State of Hawaii on
oil.
Sec. 1703. Study of siting an electric transmission system on Amtrak
right-of-way.
Sec. 1704. Updating of insular area renewable energy and energy
efficiency plans.
Sec. 1705. Consumer Energy Commission.
Sec. 1706. Study of natural gas and other energy transmission
infrastructure across the great lakes.
Sec. 1707. National Academy of Sciences study of procedures for
selection and assessment of certain routes for shipment of spent nuclear
fuel from research nuclear reactors.
Sec. 1708. Report on energy savings and water use.
Sec. 1709. Report on research on hydrogen production and
use.
DIVISION G--ENERGY INFRASTRUCTURE SECURITY
TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE
Subtitle A--Department of Energy Programs
Sec. 1802. Role of the Department of Energy.
Sec. 1803. Critical energy infrastructure programs.
Sec. 1804. Advisory Committee on Energy Infrastructure
Security.
Sec. 1805. Best practices and standards for energy infrastructure
security.
Subtitle B--Department of the Interior Programs
Sec. 1811. Outer Continental Shelf energy infrastructure
security.
DIVISION H--ENERGY TAX INCENTIVES
Sec. 1900. Short title; etc.
TITLE XIX--EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY
PRODUCTION TAX CREDIT
Sec. 1901. Three-year extension of credit for producing electricity
from wind and poultry waste.
Sec. 1902. Credit for electricity produced from biomass.
Sec. 1903. Credit for electricity produced from swine and bovine
waste nutrients, geothermal energy, and solar energy.
Sec. 1904. Treatment of persons not able to use entire
credit.
Sec. 1905. Credit for electricity produced from small irrigation
power.
Sec. 1906. Credit for electricity produced from municipal biosolids
and recycled sludge.
TITLE XX--ALTERNATIVE MOTOR VEHICLES AND FUELS INCENTIVES
Sec. 2001. Alternative motor vehicle credit.
Sec. 2002. Modification of credit for qualified electric
vehicles.
Sec. 2003. Credit for installation of alternative fueling
stations.
Sec. 2004. Credit for retail sale of alternative fuels as motor
vehicle fuel.
Sec. 2005. Small ethanol producer credit.
Sec. 2006. All alcohol fuels taxes transferred to Highway Trust
Fund.
Sec. 2007. Increased flexibility in alcohol fuels tax
credit.
Sec. 2008. Incentives for biodiesel.
Sec. 2009. Credit for taxpayers owning commercial power takeoff
vehicles.
Sec. 2010. Modifications to the incentives for alternative vehicles
and fuels.
TITLE XXI--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS
Sec. 2101. Credit for construction of new energy efficient
home.
Sec. 2102. Credit for energy efficient appliances.
Sec. 2103. Credit for residential energy efficient
property.
Sec. 2104. Credit for business installation of qualified fuel cells
and stationary microturbine power plants.
Sec. 2105. Energy efficient commercial buildings
deduction.
Sec. 2106. Allowance of deduction for qualified new or retrofitted
energy management devices.
Sec. 2107. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 2108. Energy credit for combined heat and power system
property.
Sec. 2109. Credit for energy efficiency improvements to existing
homes.
Sec. 2110. Allowance of deduction for qualified new or retrofitted
water submetering devices.
Sec. 2111. Three-year applicable recovery period for depreciation of
qualified water submetering devices.
TITLE XXII--CLEAN COAL INCENTIVES
Subtitle A--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-based Electricity Generation Facilities
Sec. 2201. Credit for production from a qualifying clean coal
technology unit.
Subtitle B--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
Sec. 2211. Credit for investment in qualifying advanced clean coal
technology.
Sec. 2212. Credit for production from a qualifying advanced clean
coal technology unit.
Subtitle C--Treatment of Persons Not Able To Use Entire Credit
Sec. 2221. Treatment of persons not able to use entire
credit.
TITLE XXIII--OIL AND GAS PROVISIONS
Sec. 2301. Oil and gas from marginal wells.
Sec. 2302. Natural gas gathering lines treated as 7-year
property.
Sec. 2303. Expensing of capital costs incurred in complying with
environmental protection agency sulfur regulations.
Sec. 2304. Environmental tax credit.
Sec. 2305. Determination of small refiner exception to oil depletion
deduction.
Sec. 2306. Marginal production income limit extension.
Sec. 2307. Amortization of geological and geophysical
expenditures.
Sec. 2308. Amortization of delay rental payments.
Sec. 2309. Study of coal bed methane.
Sec. 2310. Extension and modification of credit for producing fuel
from a nonconventional source.
Sec. 2311. Natural gas distribution lines treated as 15-year
property.
TITLE XXIV--ELECTRIC UTILITY RESTRUCTURING PROVISIONS
Sec. 2401. Ongoing study and reports regarding tax issues resulting
from future restructuring decisions.
Sec. 2402. Modifications to special rules for nuclear
decommissioning costs.
Sec. 2403. Treatment of certain income of cooperatives.
Sec. 2404. Sales or dispositions to implement Federal Energy
Regulatory Commission or State electric restructuring policy.
Sec. 2405. Application of temporary regulations to certain output
contracts.
Sec. 2406. Treatment of certain development income of
cooperatives.
TITLE XXV--ADDITIONAL PROVISIONS
Sec. 2501. Extension of accelerated depreciation and wage credit
benefits on Indian reservations.
Sec. 2502. Study of effectiveness of certain provisions by
GAO.
Sec. 2503. Credit for production of Alaska natural gas.
Sec. 2504. Sale of gasoline and diesel fuel at duty-free sales
enterprises.
Sec. 2505. Treatment of dairy property.
Sec. 2506. Clarification of excise tax exemptions for agricultural
aerial applicators.
Sec. 2507. Modification of rural airport definition.
Sec. 2508. Exemption from ticket taxes for transportation provided
by seaplanes.
DIVISION I--IRAQ OIL IMPORT RESTRICTION
TITLE XXVI--IRAQ OIL IMPORT RESTRICTION
Sec. 2601. Short title and findings.
Sec. 2602. Prohibition on Iraqi-origin petroleum imports.
Sec. 2603. Termination/Presidential certification.
Sec. 2604. Humanitarian interests.
Sec. 2606. Effective date.
DIVISION J--MISCELLANEOUS
TITLE XXVII--MISCELLANEOUS PROVISION
Sec. 2701. Fair treatment of Presidential judicial
nominees.
DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND
TRANSMISSION
TITLE I--REGIONAL COORDINATION
SEC. 101. POLICY ON REGIONAL COORDINATION.
(a) STATEMENT OF POLICY- It is the policy of the Federal Government to
encourage States to coordinate, on a regional basis, State energy policies to
provide reliable and affordable energy services to the public while minimizing
the impact of providing energy services on communities and the
environment.
(b) DEFINITION OF ENERGY SERVICES- For purposes of this section, the
term `energy services' means--
(1) the generation or transmission of electric energy,
(2) the transportation, storage, and distribution of crude oil,
residual fuel oil, refined petroleum product, or natural gas, or
(3) the reduction in load through increased efficiency,
conservation, or load control measures.
SEC. 102. FEDERAL SUPPORT FOR REGIONAL COORDINATION.
(a) TECHNICAL ASSISTANCE- The Secretary of Energy shall provide
technical assistance to States and regional organizations formed by two or
more States to assist them in coordinating their energy policies on a regional
basis. Such technical assistance may include assistance in--
(1) identifying the areas with the greatest energy resource
potential, and assessing future supply availability and demand
requirements,
(2) planning, coordinating, and siting additional energy
infrastructure, including generating facilities, electric transmission
facilities, pipelines, refineries, and distributed generation facilities to
maximize the efficiency of energy resources and infrastructure and meet
regional needs with the minimum adverse impacts on the
environment,
(3) identifying and resolving problems in distribution
networks,
(4) developing plans to respond to surge demand or emergency needs,
and
(5) developing renewable energy, energy efficiency, conservation,
and load control programs.
(b) Annual Conference on Regional Energy Coordination-
(1) ANNUAL CONFERENCE- The Secretary of Energy shall convene an
annual conference to promote regional coordination on energy policy and
infrastructure issues.
(2) PARTICIPATION- The Secretary of Energy shall invite appropriate
representatives of Federal, State, and regional energy organizations, and
other interested parties.
(3) STATE AND FEDERAL AGENCY COOPERATION- The Secretary of Energy
shall consult and cooperate with State and regional energy organizations,
the Secretary of the Interior, the Secretary of Agriculture, the Secretary
of Commerce, the Secretary of the Treasury, the Chairman of the Federal
Energy Regulatory Commission, the Administrator of the Environmental
Protection Agency, and the Chairman of the Council on Environmental Quality
in the planning and conduct of the conference.
(4) AGENDA- The Secretary of Energy, in consultation with the
officials identified in paragraph (3) and participants identified in
paragraph (2), shall establish an agenda for each conference that promotes
regional coordination on energy policy and infrastructure issues.
(5) RECOMMENDATIONS- Not later than 60 days after the conclusion of
each annual conference, the Secretary of Energy shall report to the
President and the Congress recommendations arising out of the conference
that may improve--
(A) regional coordination on energy policy and infrastructure
issues, and
(B) Federal support for regional coordination.
TITLE II--ELECTRICITY
Subtitle A--Amendments to the Federal Power Act
SEC. 201. DEFINITIONS.
(a) DEFINITION OF ELECTRIC UTILITY- Section 3(22) of the Federal Power
Act (16 U.S.C. 796(22)) is amended to read as follows:
`(22) `electric utility' means any person or Federal or State agency
(including any municipality) that sells electric energy; such term includes
the Tennessee Valley Authority and each Federal power marketing
agency.'.
(b) DEFINITION OF TRANSMITTING UTILITY- Section 3(23) of the Federal
Power Act (16 U.S.C. 796(23)) is amended to read as follows:
`(23) TRANSMITTING UTILITY- The term `transmitting utility' means an
entity (including any entity described in section 201(f)) that owns or
operates facilities used for the transmission of electric energy
in--
`(A) interstate commerce; or
`(B) for the sale of electric energy at wholesale.'.
SEC. 202. ELECTRIC UTILITY MERGERS.
Section 203(a) of the Federal Power Act (16 U.S.C. 824b) is amended to
read as follows:
`(a)(1) No public utility shall, without first having secured an order
of the Commission authorizing it to do so--
`(A) sell, lease, or otherwise dispose of the whole of its
facilities subject to the jurisdiction of the Commission, or any part
thereof of a value in excess of $10,000,000,
`(B) merge or consolidate, directly or indirectly, such facilities
or any part thereof with the facilities of any other person, by any means
whatsoever,
`(C) purchase, acquire, or take any security of any other public
utility, or
`(D) purchase, lease, or otherwise acquire existing facilities for
the generation of electric energy unless such facilities will be used
exclusively for the sale of electric energy at retail.
`(2) No holding company in a holding company system that includes a
transmitting utility or an electric utility company shall purchase, acquire,
or take any security of, or, by any means whatsoever, directly or indirectly,
merge or consolidate with a transmitting utility, an electric utility company,
a gas utility company, or a holding company in a holding company system that
includes a transmitting utility, an electric utility company, or a gas utility
company, without first having secured an order of the Commission authorizing
it to do so.
`(3) Upon application for such approval the Commission shall give
reasonable notice in writing to the Governor and State commission of each of
the States in which the physical property affected, or any part thereof, is
situated, and to such other persons as it may deem advisable.
`(4) After notice and opportunity for hearing, the Commission shall
approve the proposed disposition, consolidation, acquisition, or control, if
it finds that the proposed transaction--
`(A) will be consistent with the public interest;
`(B) will not adversely affect the interests of consumers of
electric energy of any public utility that is a party to the transaction or
is an associate company of any party to the transaction;
`(C) will not impair the ability of the Commission or any State
commission having jurisdiction over any public utility that is a party to
the transaction or an associate company of any party to the transaction to
protect the interests of consumers or the public; and
`(D) will not lead to cross-subsidization of associate companies or
encumber any utility assets for the benefit of an associate
company.
`(5) The Commission shall, by rule, adopt procedures for the
expeditious consideration of applications for the approval of dispositions,
consolidations, or acquisitions under this section. Such rules shall identify
classes of transactions, or specify criteria for transactions, that normally
meet the standards established in paragraph (4), and shall require the
Commission to grant or deny an application for approval of a transaction of
such type within 90 days after the conclusion of the hearing or opportunity to
comment under paragraph (4). If the Commission does not act within 90 days,
such application shall be deemed granted unless the Commission finds that
further consideration is required to determine whether the proposed
transaction meets the standards of paragraph (4) and issues one or more orders
tolling the time for acting on the application for an additional 90
days.
`(6) For purposes of this subsection, the terms `associate company',
`electric utility company', `gas utility company', `holding company', and
`holding company system' have the meaning given those terms in the Public
Utility Holding Company Act of 2002.'.
SEC. 203. MARKET-BASED RATES.
(a) APPROVAL OF MARKET-BASED RATES- Section 205 of the Federal Power
Act (16 U.S.C. 824d) is amended by adding at the end the following:
`(h) The Commission may determine whether a market-based rate for the
sale of electric energy subject to the jurisdiction of the Commission is just
and reasonable and not unduly discriminatory or preferential. In making such
determination, the Commission shall consider such factors as the Commission
may deem to be appropriate and in the public interest, including to the extent
the Commission considers relevant to the wholesale power market--
`(2) the nature of the market and its response mechanisms;
and
(b) REVOCATION OF MARKET-BASED RATES- Section 206 of the Federal Power
Act (16 U.S.C. 824e) is amended by adding at the end the following:
`(f) Whenever the Commission, after a hearing had upon its own motion
or upon complaint, finds that a rate charged by a public utility authorized to
charge a market-based rate under section 205 is unjust, unreasonable, unduly
discriminatory or preferential, the Commission shall determine the just and
reasonable rate and fix the same by order.'.
SEC. 204. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is amended
by--
(1) striking `the date 60 days after the filing of such complaint
nor later than 5 months after the expiration of such 60-day period' in the
second sentence and inserting `the date of the filing of such complaint nor
later than 5 months after the filing of such complaint';
(2) striking `60 days after' in the third sentence and inserting
`of'; and
(3) striking `expiration of such 60-day period' in the third
sentence and inserting `publication date'.
SEC. 205. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.
Part II of the Federal Power Act is further amended by inserting after
section 211 the following:
`OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES
`SEC. 211A. (a) Subject to section 212(h), the Commission may, by rule
or order, require an unregulated transmitting utility to provide transmission
services--
`(1) at rates that are comparable to those that the unregulated
transmitting utility charges itself, and
`(2) on terms and conditions (not relating to rates) that are
comparable to those under Commission rules that require public utilities to
offer open access transmission services and that are not unduly
discriminatory or preferential.
`(b) The Commission shall exempt from any rule or order under this
subsection any unregulated transmitting utility that--
`(1) sells no more than 4,000,000 megawatt hours of electricity per
year;
`(2) does not own or operate any transmission facilities that are
necessary for operating an interconnected transmission system (or any
portion thereof); or
`(3) meets other criteria the Commission determines to be in the
public interest.
`(c) The rate changing procedures applicable to public utilities under
subsections (c) and (d) of section 205 are applicable to unregulated
transmitting utilities for purposes of this section.
`(d) In exercising its authority under paragraph (1), the Commission
may remand transmission rates to an unregulated transmitting utility for
review and revision where necessary to meet the requirements of subsection
(a).
`(e) The provision of transmission services under subsection (a) does
not preclude a request for transmission services under section 211.
`(f) The Commission may not require a State or municipality to take
action under this section that constitutes a private business use for purposes
of section 141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
`(g) For purposes of this subsection, the term `unregulated
transmitting utility' means an entity that--
`(1) owns or operates facilities used for the transmission of
electric energy in interstate commerce, and
`(2) is either an entity described in section 201(f) or a rural
electric cooperative.'.
SEC. 206. ELECTRIC RELIABILITY STANDARDS.
Part II of the Federal Power Act (16 U.S.C 824 et seq.) is amended by
inserting the following after section 215 as added by this Act:
`SEC. 216. ELECTRIC RELIABILITY.
`(a) DEFINITIONS- For purposes of this section--
`(1) `bulk-power system' means the network of interconnected
transmission facilities and generating facilities;
`(2) `electric reliability organization' means a self-regulating
organization certified by the Commission under subsection (c) whose purpose
is to promote the reliability of the bulk-power system; and
`(3) `reliability standard' means a requirement to provide for
reliable operation of the bulk-power system approved by the Commission under
this section.
`(b) JURISIDICTION AND APPLICABILITY- The Commission shall have
jurisdiction, within the United States, over an electric reliability
organization, any regional entities, and all users, owners and operators of
the bulk-power system, including but not limited to the entities described in
section 201(f), for purposes of approving reliability standards and enforcing
compliance with this section. All users, owners and operators of the
bulk-power system shall comply with reliability standards that take effect
under this section.
`(c) CERTIFICATION- (1) The Commission shall issue a final rule to
implement the requirements of this section not later than 180 days after the
date of enactment of this section.
`(2) Following the issuance of a Commission rule under paragraph (1),
any person may submit an application to the Commission for certification as an
electric reliability organization. The Commission may certify an applicant if
the Commission determines that the applicant--
`(A) has the ability to develop, and enforce reliability standards
that provide for an adequate level of reliability of the bulk-power
system;
`(B) has established rules that--
`(i) assure its independence of the users and owners and operators
of the bulk-power system; while assuring fair stakeholder representation
in the selection of its directors and balanced decisionmaking in any
committee or subordinate organizational structure;
`(ii) allocate equitably dues, fees, and other charges among end
users for all activities under this section;
`(iii) provide fair and impartial procedures for enforcement of
reliability standards through imposition of penalties (including
limitations on activities, functions, or operations, or other appropriate
sanctions); and
`(iv) provide for reasonable notice and opportunity for public
comment, due process, openness, and balance of interests in developing
reliability standards and otherwise exercising its duties.
`(3) If the Commission receives two or more timely applications that
satisfy the requirements of this subsection, the Commission shall approve only
the application it concludes will best implement the provisions of this
section.
`(d) RELIABILITY STANDARDS- (1) An electric reliability organization
shall file a proposed reliability standard or modification to a reliability
standard with the Commission.
`(2) The Commission may approve a proposed reliability standard or
modification to a reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential, and in the public
interest. The Commission shall give due weight to the technical expertise of
the electric reliability organization with respect to the content of a
proposed standard or modification to a reliability standard, but shall not
defer with respect to its effect on competition.
`(3) The electric reliability organization and the Commission shall
rebuttably presume that a proposal from a regional entity organized on an
interconnection-wide basis for a reliability standard or modification to a
reliability standard to be applicable on an interconnection-wide basis is
just, reasonable, and not unduly discriminatory or preferential, and in the
public interest.
`(4) The Commission shall remand to the electric reliability
organization for further consideration a proposed reliability standard or a
modification to a reliability standard that the Commission disapproves in
whole or in part.
`(5) The Commission, upon its own motion or upon complaint, may order
an electric reliability organization to submit to the Commission a proposed
reliability standard or a modification to a reliability standard that
addresses a specific matter if the Commission considers such a new or modified
reliability standard appropriate to carry out this section.
`(e) ENFORCEMENT- (1) An electric reliability organization may impose
a penalty on a user or owner or operator of the bulk-power system if the
electric reliability organization, after notice and an opportunity for a
hearing--
`(A) finds that the user or owner or operator of the bulk-power
system has violated a reliability standard approved by the Commission under
subsection (d); and
`(B) files notice with the Commission, which shall affirm, set aside
or modify the action.
`(2) On its own motion or upon complaint, the Commission may order
compliance with a reliability standard and may impose a penalty against a user
or owner or operator of the bulk-power system, if the Commission finds, after
notice and opportunity for a hearing, that the user or owner or operator of
the bulk-power system has violated or threatens to violate a reliability
standard.
`(3) The Commission shall establish regulations authorizing the
electric reliability organization to enter into an agreement to delegate
authority to a regional entity for the purpose of proposing and enforcing
reliability standards (including related activities) if the regional entity
satisfies the provisions of subsection (c)(2) (A) and (B) and the agreement
promotes effective and efficient administration of bulk-power system
reliability, and may modify such delegation. The electric reliability
organization and the Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an interconnection-wide basis
promotes effective and efficient administration of bulk-power system
reliability and should be approved. Such regulation may provide that the
Commission may assign the electric reliability organization's authority to
enforce reliability standards directly to a regional entity consistent with
the requirements of this paragraph.
`(4) The Commission may take such action as is necessary or
appropriate against the electric reliability organization or a regional entity
to ensure compliance with a reliability standard or any Commission order
affecting the electric reliability organization or a regional entity.
`(f) CHANGES IN ELECTRICITY RELIALB1LITY ORGANIZATION RULES- An
electric reliability organization shall file with the Commission for approval
any proposed rule or proposed rule change, accompanied by an explanation of
its basis and purpose. The Commission, upon its own motion or complaint, may
propose a change to the rules of the electric reliability organization. A
proposed rule or proposed rule change shall take effect upon a finding by the
Commission, after notice and opportunity for comment, that the change is just,
reasonable, not unduly discriminatory or preferential, is in the public
interest, and satisfies the requirements of subsection (c)(2).
`(g) COORDINATION WITH CANADA AND MEXICO- (1) The electric reliability
organization shall take all appropriate steps to gain recognition in Canada
and Mexico.
`(2) The President shall use his best efforts to enter into
international agreements with the governments of Canada and Mexico to provide
for effective compliance with reliability standards and the effectiveness of
the electric reliability organization in the United States and Canada or
Mexico.
`(h) RELIABILITY REPORTS- The electric reliability organization shall
conduct periodic assessments of the reliability and adequacy of the
interconnected bulk-power system in North America.
`(i) SAVINGS PROVISIONS- (1) The electric reliability organization
shall have authority to develop and enforce compliance with standards for the
reliable operation of only the bulk-power system.
`(2) This section does not provide the electric reliability
organization or the Commission with the authority to order the construction of
additional generation or transmission capacity or to set and enforce
compliance with standards for adequacy or safety of electric facilities or
services.
`(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy, and
reliability of electric service within that State, as long as such action is
not inconsistent with any reliability standard.
`(4) Within 90 days of the application of the electric reliability
organization or other affected party, and after notice and opportunity for
comment, the Commission shall issue a final order determining whether a State
action is inconsistent with a reliability standard, taking into consideration
any recommendation of the electric reliability organization.
`(5) The Commission, after consultation with the electric reliability
organization, may stay the effectiveness of any State action, pending the
Commission's issuance of a final order.
`(j) APPLICATION OF ANTITRUST LAWS-
`(1) IN GENERAL- To the extent undertaken to develop, implement, or
enforce a reliability standard, each of the following activities shall not,
in any action under the antitrust laws, be deemed illegal per
se--
`(A) activities undertaken by an electric reliability organization
under this section, and
`(B) activities of a user or owner or operator of the bulk-power
system undertaken in good faith under the rules of an electric reliability
organization.
`(2) RULE OF REASON- In any action under the antitrust laws, an
activity described in paragraph (1) shall be judged on the basis of its
reasonableness, taking into account all relevant factors affecting
competition and reliability.
`(3) DEFINITION- For purposes of this subsection, `antitrust laws'
has the meaning given the term in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that it includes section 5 of the
Federal Trade Commission Act (15 U. S.C. 45) to the extent that section 5
applies to unfair methods of competition.
`(k) REGIONAL ADVISORY BODIES- The Commission shall establish a
regional advisory body on the petition of at least two-thirds of the States
within a region that have more than one-half of their electric load served
within the region. A regional advisory body shall be composed of one member
from each participating State in the region, appointed by the Governor of each
State, and may include representatives of agencies, States, and provinces
outside the United States. A regional advisory body may provide advice to the
electric reliability organization, a regional reliability entity, or the
Commission regarding the governance of an existing or proposed regional
reliability entity within the same region, whether a standard proposed to
apply within the region is just, reasonable, not unduly discriminatory or
preferential, and in the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference to the advice
of any such regional advisory body if that body is organized on an
interconnection-wide basis.
`(l) APPLICATION TO ALASKA AND HAWAII- The provisions of this section
do not apply to Alaska or Hawaii.'.
SEC. 207. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act is further amended by adding at the
end the following:
`SEC. 216. MARKET TRANSPARENCY RULES.
`(a) COMMISSION RULES- Not later than 180 days after the date of
enactment of this section, the Commission shall issue rules establishing an
electronic information system to provide information about the availability
and price of wholesale electric energy and transmission services to the
Commission, State commissions, buyers and sellers of wholesale electric
energy, users of transmission services, and the public on a timely
basis.
`(b) INFORMATION REQUIRED- The Commission shall require--
`(1) each regional transmission organization to provide statistical
information about the available capacity and capacity constraints of
transmission facilities operated by the organization; and
`(2) each broker, exchange, or other market-making entity that
matches offers to sell and offers to buy wholesale electric energy in
interstate commerce to provide statistical information about the amount and
sale price of sales of electric energy at wholesale in interstate commerce
it transacts.
`(c) TIMELY BASIS- The Commission shall require the information
required under subsection (b) to be posted on the Internet as soon as
practicable and updated as frequently as practicable.
`(d) PROTECTION OF SENSITIVE INFORMATION- The Commission shall exempt
from disclosure commercial or financial information that the Commission, by
rule or order, determines to be privileged, confidential, or otherwise
sensitive.'.
SEC. 208. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.
Part II of the Federal Power Act is further amended by adding at the
end the following:
`SEC. 217. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.
`(a) FAIR TREATMENT OF INTERMITTENT GENERATORS- The Commission shall
ensure that all transmitting utilities provide transmission service to
intermittent generators in a manner that does not unduly prejudice or
disadvantage such generators for characteristics that are--
`(1) inherent to intermittent energy resources; and
`(2) are beyond the control of such generators.
`(b) POLICIES- The Commission shall ensure that the requirement in
subsection (a) is met by adopting such policies as it deems appropriate which
shall include the following:
`(1) Subject to the sole exception set forth in paragraph (2), the
Commission shall ensure that the rates transmitting utilities charge
intermittent generator customers for transmission services do not unduly
prejudice or disadvantage intermittent generator customers for scheduling
deviations.
`(2) The Commission may exempt a transmitting utility from the
requirement set forth in paragraph (1) if the transmitting utility
demonstrates that scheduling deviations by its intermittent generator
customers are likely to have an adverse impact on the reliability of the
transmitting utility's system.
`(3) The Commission shall ensure that to the extent any transmission
charges recovering the transmitting utility's embedded costs are assessed to
such intermittent generators, they are assessed to such generators on the
basis of kilowatt-hours generated or some other method to ensure that they
are fully recovered by the transmitting utility.
`(4) The Commission shall require transmitting utilities to offer to
intermittent generators, and may require transmitting utilities to offer to
all transmission customers, access to nonfirm transmission
service.
`(c) DEFINITIONS- As used in this section:
`(1) The term `intermittent generator' means a facility that
generates electricity using wind or solar energy and no other energy
source.
`(2) The term `nonfirm transmission service' means transmission
service provided on an `as available' basis.
`(3) The term `scheduling deviation' means delivery of more or less
energy than has previously been forecast in a schedule submitted by an
intermittent generator to a control area operator or transmitting
utility.'.
SEC. 209. ENFORCEMENT.
(a) COMPLAINTS- Section 306 of the Federal Power Act (16 U.S.C. 825e)
is amended by--
(1) inserting `electric utility,' after `Any person,';
and
(2) inserting `transmitting utility,' after `licensee' each place it
appears.
(b) INVESTIGATIONS- Section 307(a) of the Federal Power Act (16 U.S.C.
825f(a)) is amended by inserting `or transmitting utility' after `any person'
in the first sentence.
(c) REVIEW OF COMMISSION ORDERS- Section 313(a) of the Federal Power
Act (16 U.S.C. 8251) is amended by inserting `electric utility,' after `Any
person,' in the first sentence.
(d) CRIMINAL PENALTIES- Section 316(c) of the Federal Power Act (16
U.S.C. 825o(c)) is repealed.
(e) CIVIL PENALTIES- Section 316A of the Federal Power Act (16 U.S.C.
825o-1) is amended by striking `section 211, 212, 213, or 214' each place it
appears and inserting `Part II'.
SEC. 210. ELECTRIC POWER TRANSMISSION SYSTEMS.
The Federal Government should be attentive to electric power
transmission issues, including issues that can be addressed through policies
that facilitate investment in, the enhancement of, and the efficiency of
electric power transmission systems.
Subtitle B--Amendments to the Public Utility Holding Company
Act
SEC. 221. SHORT TITLE.
This subtitle may be cited as the `Public Utility Holding Company Act
of 2002'.
SEC. 222. DEFINITIONS.
For purposes of this subtitle:
(1) The term `affiliate' of a company means any company, 5 percent
or more of the outstanding voting securities of which are owned, controlled,
or held with power to vote, directly or indirectly, by such
company.
(2) The term `associate company' of a company means any company in
the same holding company system with such company.
(3) The term `Commission' means the Federal Energy Regulatory
Commission.
(4) The term `company' means a corporation, partnership,
association, joint stock company, business trust, or any organized group of
persons, whether incorporated or not, or a receiver, trustee, or other
liquidating agent of any of the foregoing.
(5) The term `electric utility company' means any company that owns
or operates facilities used for the generation, transmission, or
distribution of electric energy for sale.
(6) The terms `exempt wholesale generator' and `foreign utility
company' have the same meanings as in sections 32 and 33, respectively, of
the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b),
as those sections existed on the day before the effective date of this
subtitle.
(7) The term `gas utility company' means any company that owns or
operates facilities used for distribution at retail (other than the
distribution only in enclosed portable containers or distribution to tenants
or employees of the company operating such facilities for their own use and
not for resale) of natural or manufactured gas for heat, light, or
power.
(8) The term `holding company' means--
(A) any company that directly or indirectly owns, controls, or
holds, with power to vote, 10 percent or more of the outstanding voting
securities of a public utility company or of a holding company of any
public utility company; and
(B) any person, determined by the Commission, after notice and
opportunity for hearing, to exercise directly or indirectly (either alone
or pursuant to an arrangement or understanding with one or more persons)
such a controlling influence over the management or policies of any public
utility company or holding company as to make it necessary or appropriate
for the rate protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and liabilities imposed
by this subtitle upon holding companies.
(9) The term `holding company system' means a holding company,
together with its subsidiary companies.
(10) The term `jurisdictional rates' means rates established by the
Commission for the transmission of electric energy in interstate commerce,
the sale of electric energy at wholesale in interstate commerce, the
transportation of natural gas in interstate commerce, and the sale in
interstate commerce of natural gas for resale for ultimate public
consumption for domestic, commercial, industrial, or any other
use.
(11) The term `natural gas company' means a person engaged in the
transportation of natural gas in interstate commerce or the sale of such gas
in interstate commerce for resale.
(12) The term `person' means an individual or company.
(13) The term `public utility' means any person who owns or operates
facilities used for transmission of electric energy in interstate commerce
or sales of electric energy at wholesale in interstate commerce.
(14) The term `public utility company' means an electric utility
company or a gas utility company.
(15) The term `State commission' means any commission, board,
agency, or officer, by whatever name designated, of a State, municipality,
or other political subdivision of a State that, under the laws of such
State, has jurisdiction to regulate public utility companies.
(16) The term `subsidiary company' of a holding company
means--
(A) any company, 10 percent or more of the outstanding voting
securities of which are directly or indirectly owned, controlled, or held
with power to vote, by such holding company; and
(B) any person, the management or policies of which the
Commission, after notice and opportunity for hearing, determines to be
subject to a controlling influence, directly or indirectly, by such
holding company (either alone or pursuant to an arrangement or
understanding with one or more other persons) so as to make it necessary
for the rate protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and liabilities imposed
by this subtitle upon subsidiary companies of holding
companies.
(17) The term `voting security' means any security presently
entitling the owner or holder thereof to vote in the direction or management
of the affairs of a company.
SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF
1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.)
is repealed.
SEC. 224. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) IN GENERAL- Each holding company and each associate company
thereof shall maintain, and shall make available to the Commission, such
books, accounts, memoranda, and other records as the Commission deems to be
relevant to costs incurred by a public utility or natural gas company that is
an associate company of such holding company and necessary or appropriate for
the protection of utility customers with respect to jurisdictional
rates.
(b) AFFILIATE COMPANIES- Each affiliate of a holding company or of any
subsidiary company of a holding company shall maintain, and shall make
available to the Commission, such books, accounts, memoranda, and other
records with respect to any transaction with another affiliate, as the
Commission deems to be relevant to costs incurred by a public utility or
natural gas company that is an associate company of such holding company and
necessary or appropriate for the protection of utility customers with respect
to jurisdictional rates.
(c) HOLDING COMPANY SYSTEMS- The Commission may examine the books,
accounts, memoranda, and other records of any company in a holding company
system, or any affiliate thereof, as the Commission deems to be relevant to
costs incurred by a public utility or natural gas company within such holding
company system and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
(d) CONFIDENTIALITY- No member, officer, or employee of the Commission
shall divulge any fact or information that may come to his or her knowledge
during the course of examination of books, accounts, memoranda, or other
records as provided in this section, except as may be directed by the
Commission or by a court of competent jurisdiction.
SEC. 225. STATE ACCESS TO BOOKS AND RECORDS.
(a) In GENERAL- Upon the written request of a State commission having
jurisdiction to regulate a public utility company in a holding company system,
the holding company or any associate company or affiliate thereof, other than
such public utility company, wherever located, shall produce for inspection
books, accounts, memoranda, and other records that--
(1) have been identified in reasonable detail by the State
commission;
(2) the State commission deems are relevant to costs incurred by
such public utility company; and
(3) are necessary for the effective discharge of the
responsibilities of the State commission with respect to such
proceeding.
(b) LIMITATION- Subsection (a) does not apply to any person that is a
holding company solely by reason of ownership of one or more qualifying
facilities under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 et seq.).
(c) CONFIDENTIALITY OF INFORMATION- The production of books, accounts,
memoranda, and other records under subsection (a) shall be subject to such
terms and conditions as may be necessary and appropriate to safeguard against
unwarranted disclosure to the public of any trade secrets or sensitive
commercial information.
(d) EFFECT ON STATE LAW- Nothing in this section shall preempt
applicable State law concerning the provision of books, accounts, memoranda,
and other records, or in any way limit the rights of any State to obtain
books, accounts, memoranda, and other records under any other Federal law,
contract, or otherwise.
(e) COURT JURISDICTION- Any United States district court located in
the State in which the State commission referred to in subsection (a) is
located shall have jurisdiction to enforce compliance with this
section.
SEC. 226. EXEMPTION AUTHORITY.
(a) RULEMAKING- Not later than 90 days after the effective date of
this subtitle, the Commission shall promulgate a final rule to exempt from the
requirements of section 224 any person that is a holding company, solely with
respect to one or more--
(1) qualifying facilities under the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) OTHER AUTHORITY- The Commission shall exempt a person or
transaction from the requirements of section 224, if, upon application or upon
the motion of the Commission--
(1) the Commission finds that the books, accounts, memoranda, and
other records of any person are not relevant to the jurisdictional rates of
a public utility or natural gas company; or
(2) the Commission finds that any class of transactions is not
relevant to the jurisdictional rates of a public utility or natural gas
company.
SEC. 227. AFFILIATE TRANSACTIONS.
(a) COMMISSION AUTHORITY UNAFFECTED- Nothing in this subtitle shall
limit the authority of the Commission under the Federal Power Act (16 U.S.C.
791a et seq.) to require that jurisdictional rates are just and reasonable,
including the ability to deny or approve the pass through of costs, the
prevention of cross-subsidization, and the promulgation of such rules and
regulations as are necessary or appropriate for the protection of utility
consumers.
(b) RECOVERY OF COSTS- Nothing in this subtitle shall preclude the
Commission or a State commission from exercising its jurisdiction under
otherwise applicable law to determine whether a public utility company, public
utility, or natural gas company may recover in rates any costs of an activity
performed by an associate company, or any costs of goods or services acquired
by such public utility company from an associate company.
SEC. 228. APPLICABILITY.
Except as otherwise specifically provided in this subtitle, no
provision of this subtitle shall apply to, or be deemed to include--
(2) a State or any political subdivision of a State;
(3) any foreign governmental authority not operating in the United
States;
(4) any agency, authority, or instrumentality of any entity referred
to in paragraph (1), (2), or (3); or
(5) any officer, agent, or employee of any entity referred to in
paragraph (1), (2), or (3) acting as such in the course of his or her
official duty.
SEC. 229. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or a State
commission from exercising its jurisdiction under otherwise applicable law to
protect utility customers.
SEC. 230. ENFORCEMENT.
The Commission shall have the same powers as set forth in sections 306
through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to enforce the
provisions of this subtitle.
SEC. 231. SAVINGS PROVISIONS.
(a) IN GENERAL- Nothing in this subtitle prohibits a person from
engaging in or continuing to engage in activities or transactions in which it
is legally engaged or authorized to engage on the effective date of this
subtitle.
(b) EFFECT ON OTHER COMMISSION AUTHORITY- Nothing in this subtitle
limits the authority of the Commission under the Federal Power Act (16 U.S.C.
791a et seq.) (including section 301 of that Act) or the Natural Gas Act (15
U.S.C. 717 et seq.) (including section 8 of that Act).
SEC. 232. IMPLEMENTATION.
Not later than 18 months after the date of enactment of this subtitle,
the Commission shall--
(1) promulgate such regulations as may be necessary or appropriate
to implement this subtitle (other than section 225); and
(2) submit to the Congress detailed recommendations on technical and
conforming amendments to Federal law necessary to carry out this subtitle
and the amendments made by this subtitle.
SEC. 233. TRANSFER OF RESOURCES.
All books and records that relate primarily to the functions
transferred to the Commission under this subtitle shall be transferred from
the Securities and Exchange Commission to the Commission.
SEC. 234. INTER-AGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND RETAIL
MARKETS FOR ELECTRIC ENERGY.
(a) TASK FORCE- There is established an inter-agency task force, to be
known as the `Electric Energy Market Competition Task Force' (referred to in
this section as the `task force'), which shall consist of--
(1) one member each from--
(A) the Department of Justice, to be appointed by the Attorney
General of the United States;
(B) the Federal Energy Regulatory Commission, to be appointed by
the chairman of that Commission; and
(C) the Federal Trade Commission, to be appointed by the chairman
of that Commission; and
(2) two advisory members (who shall not vote), of whom--
(A) one shall be appointed by the Secretary of Agriculture to
represent the Rural Utility Service; and
(B) one shall be appointed by the Chairman of the Securities and
Exchange Commission to represent that Commission.
(1) STUDY- The task force shall perform a study and analysis of the
protection and promotion of competition within the wholesale and retail
market for electric energy in the United States.
(A) FINAL REPORT- Not later than 1 year after the effective date
of this subtitle, the task force shall submit a final report of its
findings under paragraph (1) to the Congress.
(B) PUBLIC COMMENT- At least 60 days before submission of a final
report to the Congress under subparagraph (A), the task force shall
publish a draft report in the Federal Register to provide for public
comment.
(c) FOCUS- The study required by this section shall examine--
(1) the best means of protecting competition within the wholesale
and retail electric market;
(2) activities within the wholesale and retail electric market that
may allow unfair and unjustified discriminatory and deceptive
practices;
(3) activities within the wholesale and retail electric market,
including mergers and acquisitions, that deny market access or suppress
competition;
(4) cross-subsidization that may occur between regulated and
nonregulated activities; and
(5) the role of State public utility commissions in regulating
competition in the wholesale and retail electric market.
(d) CONSULTATION- In performing the study required by this section,
the task force shall consult with and solicit comments from its advisory
members, the States, representatives of the electric power industry, and the
public.
SEC. 235. GAO STUDY ON IMPLEMENTATION.
(a) STUDY- The Comptroller General shall conduct a study of the
success of the Federal Government and the States during the 18-month period
following the effective date of this subtitle in--
(1) the prevention of anticompetitive practices and other abuses by
public utility holding companies, including cross-subsidization and other
market power abuses; and
(2) the promotion of competition and efficient energy markets to the
benefit of consumers.
(b) REPORT TO CONGRESS- Not earlier than 18 months after the effective
date of this subtitle or later than 24 months after that effective date, the
Comptroller General shall submit a report to the Congress on the results of
the study conducted under subsection (a), including probable causes of its
findings and recommendations to the Congress and the States for any necessary
legislative changes.
SEC. 236. EFFECTIVE DATE.
This subtitle shall take effect 18 months after the date of enactment
of this subtitle.
SEC. 237. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as may be necessary
to carry out this subtitle.
SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.
(a) CONFLICT OF JURISDICTION- Section 318 of the Federal Power Act (16
U.S.C. 825q) is repealed.
(b) DEFINITIONS- (1) Section 201(g) of the Federal Power Act (16
U.S.C. 824(g)) is amended by striking `1935' and inserting `2002'.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is amended
by striking `1935' and inserting `2002'.
Subtitle C--Amendments to the Public Utility Regulatory Policies Act
of 1978
SEC. 241. REAL-TIME PRICING AND TIME-OF-USE METERING
STANDARDS.
(a) ADOPTION OF STANDARDS- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at
the end the following:
`(11) REAL-TIME PRICING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a real-time
rate schedule, under which the rate charged by the electric utility varies
by the hour (or smaller time interval) according to changes in the electric
utility's wholesale power cost. The real-time pricing service shall enable
the electric consumer to manage energy use and cost through real-time
metering and communications technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.
`(12) TIME-OF-USE METERING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a
time-of-use rate schedule which enables the electric consumer to manage
energy use and cost through time-of-use metering and technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standards set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES- Section 115 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the
following:
`(i) REAL-TIME PRICING- In a State that permits third-party marketers
to sell electric energy to retail electric consumers, the electric consumer
shall be entitled to receive the same real-time metering and communication
service as a direct retail electric consumer of the electric utility.
`(j) TIME-OF-USE METERING- In a State that permits third-party
marketers to sell electric energy to retail electric consumers, the electric
consumer shall be entitled to receive the same time-of-use metering and
communication service as a direct retail electric consumer of the electric
utility.'.
SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.
(a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at
the end the following:
`(6) DISTRIBUTED GENERATION- Each electric utility shall provide
distributed generation, combined heat and power, and district heating and
cooling systems competitive access to the local distribution grid and
competitive pricing of service, and shall use simplified standard contracts
for the interconnection of generating facilities that have a power
production capacity of 250 kilowatts or less.
`(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse
to interconnect a generating facility with the distribution facilities of
the electric utility if the owner or operator of the generating facility
complies with technical standards adopted by the State regulatory authority
and agrees to pay the costs established by such State regulatory
authority.
`(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric
utility shall develop a plan to minimize dependence on one fuel source and
to ensure that the electric energy it sells to consumers is generated using
a diverse range of fuels and technologies, including renewable
technologies.
`(9) FOSSIL FUEL EFFICIENCY- Each electric utility shall develop and
implement a ten-year plan to increase the efficiency of its fossil fuel
generation and shall monitor and report to its State regulatory authority
excessive greenhouse gas emissions resulting from the inefficient operation
of its fossil fuel generating plants.'.
(b) TIME FOR ADOPTING STANDARDS- Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding
at the end the following:
`(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7),
(8), and (9) of subsection (b), any reference contained in this section to the
date of enactment of the Public Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of enactment of this
subsection.'.
SEC. 243. TECHNICAL ASSISTANCE.
Section 132(c) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2642(c)) is amended to read as follows:
`(c) TECHNICAL ASSISTANCE FOR CERTAIN RESPONSIBILITIES- The Secretary
may provide such technical assistance as he determines appropriate to assist
State regulatory authorities and electric utilities in carrying out their
responsibilities under section 111(d)(11) and paragraphs (6), (7), (8), and
(9) of section 113(b).'.
SEC. 244. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE
REQUIREMENTS.
(a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section
210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3)
is amended by adding at the end the following:
`(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-
`(1) OBLIGATION TO PURCHASE- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to purchase electric energy from a qualifying
cogeneration facility or a qualifying small power production facility under
this section if the Commission finds that the qualifying cogeneration
facility or qualifying small power production facility has access to
independently administered, auction-based day ahead and real time wholesale
markets for the sale of electric energy.
`(2) OBLIGATION TO SELL- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to sell electric energy to a qualifying cogeneration
facility or a qualifying small power production facility under this section
if competing retail electric suppliers are able to provide electric energy
to the qualifying cogeneration facility or qualifying small power production
facility.
`(3) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this
subsection affects the rights or remedies of any party under any contract or
obligation, in effect on the date of enactment of this subsection, to
purchase electric energy or capacity from or to sell electric energy or
capacity to a facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
`(A) REGULATION- To ensure recovery by an electric utility that
purchases electric energy or capacity from a qualifying facility pursuant
to any legally enforceable obligation entered into or imposed under this
section before the date of enactment of this subsection, of all prudently
incurred costs associated with the purchases, the Commission shall issue
and enforce such regulations as may be required to ensure that the
electric utility shall collect the prudently incurred costs associated
with such purchases.
`(B) ENFORCEMENT- A regulation under subparagraph (A) shall be
enforceable in accordance with the provisions of law applicable to
enforcement of regulations under the Federal Power Act (16 U.S.C. 791a et
seq.).'.
(b) ELIMINATION OF OWNERSHIP LIMITATIONS-
(1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C))
is amended to read as follows:
`(C) `qualifying small power production facility' means a small
power production facility that the Commission determines, by rule, meets
such requirements (including requirements respecting minimum size, fuel
use, and fuel efficiency) as the Commission may, by rule,
prescribe.'.
(2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B))
is amended to read as follows:
`(B) `qualifying cogeneration facility' means a cogeneration facility
that the Commission determines, by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and fuel efficiency) as the
Commission may, by rule, prescribe.'.
SEC. 245. NET METERING.
(a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is further amended by
adding at the end the following:
`(13) NET METERING- (A) Each electric utility shall make available
upon request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further amended by adding
at the end the following:
`(1) RATES AND CHARGES- An electric utility--
`(A) shall charge the owner or operator of an on-site generating
facility rates and charges that are identical to those that would be
charged other electric consumers of the electric utility in the same rate
class; and
`(B) shall not charge the owner or operator of an on-site
generating facility any additional standby, capacity, interconnection, or
other rate or charge.
`(2) MEASUREMENT- An electric utility that sells electric energy to
the owner or operator of an on-site generating facility shall measure the
quantity of electric energy produced by the on-site facility and the
quantity of electric energy consumed by the owner or operator of an on-site
generating facility during a billing period in accordance with normal
metering practices.
`(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED-
If the quantity of electric energy sold by the electric utility to an
on-site generating facility exceeds the quantity of electric energy supplied
by the on-site generating facility to the electric utility during the
billing period, the electric utility may bill the owner or operator for the
net quantity of electric energy sold, in accordance with normal metering
practices.
`(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED-
If the quantity of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of electric energy
sold by the electric utility to the on-site generating facility during the
billing period--
`(A) the electric utility may bill the owner or operator of the
on-site generating facility for the appropriate charges for the billing
period in accordance with paragraph (2); and
`(B) the owner or operator of the on-site generating facility
shall be credited for the excess kilowatt-hours generated during the
billing period, with the kilowatt-hour credit appearing on the bill for
the following billing period.
`(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site
generating facility and net metering system used by an electric consumer
shall meet all applicable safety, performance, reliability, and
interconnection standards established by the National Electrical Code, the
Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.
`(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission,
after consultation with State regulatory authorities and nonregulated
electric utilities and after notice and opportunity for comment, may adopt,
by rule, additional control and testing requirements for on-site generating
facilities and net metering systems that the Commission determines are
necessary to protect public safety and system reliability.
`(7) DEFINITIONS- For purposes of this subsection:
`(A) The term `eligible on-site generating facility'
means--
`(i) a facility on the site of a residential electric consumer
with a maximum generating capacity of 10 kilowatts or less that is
fueled by solar energy, wind energy, or fuel cells; or
`(ii) a facility on the site of a commercial electric consumer
with a maximum generating capacity of 500 kilowatts or less that is
fueled solely by a renewable energy resource, landfill gas, or a high
efficiency system.
`(B) The term `renewable energy resource' means solar, wind,
biomass, or geothermal energy.
`(C) The term `high efficiency system' means fuel cells or
combined heat and power.
`(D) The term `net metering service' means service to an electric
consumer under which electric energy generated by that electric consumer
from an eligible on-site generating facility and delivered to the local
distribution facilities may be used to offset electric energy provided by
the electric utility to the electric consumer during the applicable
billing period.'.
Subtitle D--Consumer Protections
SEC. 251. INFORMATION DISCLOSURE.
(a) OFFERS AND SOLICITATIONS- The Federal Trade Commission shall issue
rules requiring each electric utility that makes an offer to sell electric
energy, or solicits electric consumers to purchase electric energy to provide
the electric consumer a statement containing the following
information--
(1) the nature of the service being offered, including information
about interruptibility of service;
(2) the price of the electric energy, including a description of any
variable charges;
(3) a description of all other charges associated with the service
being offered, including access charges, exit charges, back-up service
charges, stranded cost recovery charges, and customer service charges;
and
(4) information the Federal Trade Commission determines is
technologically and economically feasible to provide, is of assistance to
electric consumers in making purchasing decisions, and concerns--
(A) the product or its price;
(B) the share of electric energy that is generated by each fuel
type; and
(C) the environmental emissions produced in generating the
electric energy.
(b) PERIODIC BILLINGS- The Federal Trade Commission shall issue rules
requiring any electric utility that sells electric energy to transmit to each
of its electric consumers, in addition to the information transmitted pursuant
to section 115(f) of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2625(f)), a clear and concise statement containing the information
described in subsection (a)(4) for each billing period (unless such
information is not reasonably ascertainable by the electric utility).
SEC. 252. CONSUMER PRIVACY.
(a) PROHIBITION- The Federal Trade Commission shall issue rules
prohibiting any electric utility that obtains consumer information in
connection with the sale or delivery of electric energy to an electric
consumer from using, disclosing, or permitting access to such information
unless the electric consumer to whom such information relates provides prior
written approval.
(b) PERMITTED USE- The rules issued under this section shall not
prohibit any electric utility from using, disclosing, or permitting access to
consumer information referred to in subsection (a) for any of the following
purposes--
(1) to facilitate an electric consumer's change in selection of an
electric utility under procedures approved by the State or State regulatory
authority;
(2) to initiate, render, bill, or collect for the sale or delivery
of electric energy to electric consumers or for related services;
(3) to protect the rights or property of the person obtaining such
information;
(4) to protect retail electric consumers from fraud, abuse, and
unlawful subscription in the sale or delivery of electric energy to such
consumers;
(5) for law enforcement purposes; or
(6) for purposes of compliance with any Federal, State, or local law
or regulation authorizing disclosure of information to a Federal, State, or
local agency.
(c) AGGREGATE CONSUMER INFORMATION- The rules issued under this
subsection may permit a person to use, disclose, and permit access to
aggregate consumer information and may require an electric utility to make
such information available to other electric utilities upon request and
payment of a reasonable fee.
(d) DEFINITIONS- As used in this section:
(1) The term `aggregate consumer information' means collective data
that relates to a group or category of retail electric consumers, from which
individual consumer identities and characteristics have been
removed.
(2) The term `consumer information' means information that relates
to the quantity, technical configuration, type, destination, or amount of
use of electric energy delivered to any retail electric consumer.
SEC. 253. OFFICE OF CONSUMER ADVOCACY.
(a) DEFINITIONS- In this section:
(1) COMMISSION- The term `Commission' means the Federal Energy
Regulatory Commission.
(2) ENERGY CUSTOMER- The term `energy customer' means a residential
customer or a small commercial customer that receives products or services
from a public utility or natural gas company under the jurisdiction of the
Commission.
(3) NATURAL GAS COMPANY- The term `natural gas company' has the
meaning given the term in section 2 of the Natural Gas Act (15 U.S.C. 717a),
as modified by section 601(a) of the Natural Gas Policy Act of 1978 (15
U.S.C. 3431(a)).
(4) OFFICE- The term `Office' means the Office of Consumer Advocacy
established by subsection (b)(1).
(5) PUBLIC UTILITY- The term `public utility' has the meaning given
the term in section 201(e) of the Federal Power Act (16 U.S.C.
824(e)).
(6) SMALL COMMERCIAL CUSTOMER- The term `small commercial customer'
means a commercial customer that has a peak demand of not more than 1,000
kilowatts per hour.
(1) ESTABLISHMENT- There is established within the Department of
Justice the Office of Consumer Advocacy.
(2) DIRECTOR- The Office shall be headed by a Director to be
appointed by the President, by and with the advice and consent of the
Senate.
(3) DUTIES- The Office may represent the interests of energy
customers on matters concerning rates or service of public utilities and
natural gas companies under the jurisdiction of the Commission--
(A) at hearings of the Commission;
(B) in judicial proceedings in the courts of the United
States;
(C) at hearings or proceedings of other Federal regulatory
agencies and commissions.
SEC. 254. UNFAIR TRADE PRACTICES.
(a) SLAMMING- The Federal Trade Commission shall issue rules
prohibiting the change of selection of an electric utility except with the
informed consent of the electric consumer.
(b) CRAMMING- The Federal Trade Commission shall issue rules
prohibiting the sale of goods and services to an electric consumer unless
expressly authorized by law or the electric consumer.
SEC. 255. APPLICABLE PROCEDURES.
The Federal Trade Commission shall proceed in accordance with section
553 of title 5, United States Code, when prescribing a rule required by this
subtitle.
SEC. 256. FEDERAL TRADE COMMISSION ENFORCEMENT.
Violation of a rule issued under this subtitle shall be treated as a
violation of a rule under section 18 of the Federal Trade Commission Act (15
U.S.C. 57a) respecting unfair or deceptive acts or practices. All functions
and powers of the Federal Trade Commission under such Act are available to the
Federal Trade Commission to enforce compliance with this subtitle
notwithstanding any jurisdictional limits in such Act.
SEC. 257. STATE AUTHORITY.
Nothing in this subtitle shall be construed to preclude a State or
State regulatory authority from prescribing and enforcing laws, rules, or
procedures regarding the practices which are the subject of this
section.
SEC. 258. APPLICATION OF SUBTITLE.
The provisions of this subtitle apply to each electric utility if the
total sales of electric energy by such utility for purposes other than resale
exceed 500 million kilowatt-hours per calendar year. The provisions of this
subtitle do not apply to the operations of an electric utility to the extent
that such operations relate to sales of electric energy for purposes of
resale.
SEC. 259. DEFINITIONS.
As used in this subtitle:
(1) The term `aggregate consumer information' means collective data
that relates to a group or category of electric consumers, from which
individual consumer identities and identifying characteristics have been
removed.
(2) The term `consumer information' means information that relates
to the quantity, technical configuration, type, destination, or amount of
use of electric energy delivered to an electric consumer.
(3) The terms `electric consumer', `electric utility', and `State
regulatory authority' have the meanings given such terms in section 3 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle E--Renewable Energy and Rural Construction
Grants
SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) INCENTIVE PAYMENTS- Section 1212(a) of the Energy Policy Act of
1992 (42 U.S.C. 13317(a)) is amended by striking `and which satisfies' and all
that follows through `Secretary shall establish.' and inserting the following:
`. The Secretary shall establish other procedures necessary for efficient
administration of the program. The Secretary shall not establish any criteria
or procedures that have the effect of assigning to proposals a higher or lower
priority for eligibility or allocation of appropriated funds on the basis of
the energy source proposed.'.
(b) QUALIFIED RENEWABLE ENERGY FACILITY- Section 1212(b) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
(1) by striking `a State or any political' and all that follows
through `nonprofit electrical cooperative' and inserting the following: `a
nonprofit electrical cooperative, a public utility described in section 115
of such Code, a State, Commonwealth, territory, or possession of the United
States or the District of Columbia, or a political subdivision thereof, or
an Indian tribal government or subdivision thereof,'; and
(2) by inserting `landfill gas, incremental hydropower, ocean' after
`wind, biomass,'.
(c) ELIGIBILITY WINDOW- Section 1212(c) of the Energy Policy Act of
1992 (42 U.S.C. 13317(c)) is amended by striking `during the 10-fiscal year
period beginning with the first full fiscal year occurring after the enactment
of this section' and inserting `before October 1, 2013'.
(d) PAYMENT PERIOD- Section 1212(d) of the Energy Policy Act of 1992
(42 U.S.C. 13317(d)) is amended by inserting `or in which the Secretary finds
that all necessary Federal and State authorizations have been obtained to
begin construction of the facility' after `eligible for such
payments'.
(e) AMOUNT OF PAYMENT- Section 1212(e)(1) of the Energy Policy Act of
1992 (42 U.S.C. 13317(e)(1)) is amended by inserting `landfill gas,
incremental hydropower, ocean' after `wind, biomass,'.
(f) SUNSET- Section 1212(f) of the Energy Policy Act of 1992 (42
U.S.C. 13317(f)) is amended by striking `the expiration of' and all that
follows through `of this section' and inserting `September 30, 2023'.
(g) INCREMENTAL HYDROPOWER; AUTHORIZATION OF APPROPRIATIONS- Section
1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is further amended by
striking subsection (g) and inserting the following:
`(g) Incremental Hydropower-
`(1) PROGRAMS- Subject to subsection (h)(2), if an incremental
hydropower program meets the requirements of this section, as determined by
the Secretary, the incremental hydropower program shall be eligible to
receive incentive payments under this section.
`(2) DEFINITION OF INCREMENTAL HYDROPOWER- In this subsection, the
term `incremental hydropower' means additional generating capacity achieved
from increased efficiency or additions of new capacity at a hydroelectric
facility in existence on the date of enactment of this paragraph.
`(h) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- Subject to paragraph (2), there are authorized to
be appropriated such sums as may be necessary to carry out this section for
fiscal years 2003 through 2023.
`(2) LIMITATION ON FUNDS USED FOR INCREMENTAL HYDROPOWER PROGRAMS-
Not more than 30 percent of the amounts made available under paragraph (1)
shall be used to carry out programs described in subsection
(g)(2).
`(3) AVAILABILITY OF FUNDS- Funds made available under paragraph (1)
shall remain available until expended.'.
SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) RESOURCE ASSESSMENT- Not later than 3 months after the date of
enactment of this title, and each year thereafter, the Secretary of Energy
shall review the available assessments of renewable energy resources available
within the United States, including solar, wind, biomass, ocean, geothermal,
and hydroelectric energy resources, and undertake new assessments as
necessary, taking into account changes in market conditions, available
technologies and other relevant factors.
(b) CONTENTS OF REPORTS- Not later than 1 year after the date of
enactment of this title, and each year thereafter, the Secretary shall publish
a report based on the assessment under subsection (a). The report shall
contain--
(1) a detailed inventory describing the available amount and
characteristics of the renewable energy resources, and
(2) such other information as the Secretary of Energy believes would
be useful in developing such renewable energy resources, including
descriptions of surrounding terrain, population and load centers, nearby
energy infrastructure, location of energy and water resources, and available
estimates of the costs needed to develop each resource, together with an
identification of any barriers to providing adequate transmission for remote
sources of renewable energy resources to current and emerging markets,
recommendations for removing or addressing such barriers, and ways to
provide access to the grid that do not unfairly disadvantage renewable or
other energy producers.
SEC. 263. FEDERAL PURCHASE REQUIREMENT.
(a) REQUIREMENT- The President shall seek to ensure that, to the
extent economically feasible and technically practicable, of the total amount
of electric energy the Federal Government consumes during any fiscal
year--
(1) not less than 3 percent in fiscal years 2003 through
2004,
(2) not less than 5 percent in fiscal years 2005 through 2009,
and
(3) not less than 7.5 percent in fiscal year 2010 and each fiscal
year thereafter,
shall be renewable energy. The President shall encourage the use of
innovative purchasing practices by Federal agencies.
(b) DEFINITION- For purposes of this section, the term `renewable
energy' means electric energy generated from solar, wind, biomass, geothermal,
fuel cells, municipal solid waste, or additional hydroelectric generation
capacity achieved from increased efficiency or additions of new
capacity.
(c) TRIBAL POWER GENERATION- The President shall seek to ensure that,
to the extent economically feasible and technically practicable, not less than
one-tenth of the amount specified in subsection (a) shall be renewable energy
that is generated by an Indian tribe or by a corporation, partnership, or
business association which is wholly or majority owned, directly or
indirectly, by an Indian tribe. For purposes of this subsection, the term
`Indian tribe' means any Indian tribe, band, nation, or other organized group
or community, including any Alaskan Native village or regional or village
corporation as defined in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for
the special programs and services provided by the United States to Indians
because of their status as Indians.
(d) BIENNIAL REPORT- In 2004 and every 2 years thereafter, the
Secretary of Energy shall report to the Committee on Energy and Natural
Resources of the Senate and the appropriate committees of the House of
Representatives on the progress of the Federal Government in meeting the goals
established by this section.
SEC. 264. RENEWABLE PORTFOLIO STANDARD.
Title VI of the Public Utility Regulatory Policies Act of 1978 is
amended by adding at the end the following:
`SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) MINIMUM RENEWABLE GENERATION REQUIREMENT- For each calendar year
beginning in calendar year 2005, each retail electric supplier shall submit to
the Secretary, not later than April 1 of the following calendar year,
renewable energy credits in an amount equal to the required annual percentage
specified in subsection (b).
`(b) REQUIRED ANNUAL PERCENTAGE- (1) For calendar years 2005 through
2020, the required annual percentage of the retail electric supplier's base
amount that shall be generated from renewable energy resources shall be the
percentage specified in the following table:
Required annual
`Calendar Years
percentage
--1.0
--2.2
--3.4
--4.6
--5.8
--7.0
--8.5
--10.0.
`(2) Not later than January 1, 2015, the Secretary may, by rule,
establish required annual percentages in amounts not less than 10.0 for
calendar years 2020 through 2030.
`(c) SUBMISSION OF CREDITS- (1) A retail electric supplier may satisfy
the requirements of subsection (a) through the submission of renewable energy
credits--
`(A) issued to the retail electric supplier under subsection
(d);
`(B) obtained by purchase or exchange under subsection (e);
or
`(C) borrowed under subsection (f).
`(2) A credit may be counted toward compliance with subsection (a)
only once.
`(d) ISSUANCE OF CREDITS- (1) The Secretary shall establish, not later
than 1 year after the date of enactment of this section, a program to issue,
monitor the sale or exchange of, and track renewable energy credits.
`(2) Under the program, an entity that generates electric energy
through the use of a renewable energy resource may apply to the Secretary for
the issuance of renewable energy credits. The application shall
indicate--
`(A) the type of renewable energy resource used to produce the
electricity,
`(B) the location where the electric energy was produced,
and
`(C) any other information the Secretary determines
appropriate.
`(3)(A) Except as provided in paragraphs (B), (C), and (D), the
Secretary shall issue to an entity one renewable energy credit for each
kilowatt-hour of electric energy the entity generates from the date of
enactment of this section and in each subsequent calendar year through the use
of a renewable energy resource at an eligible facility.
`(B) For incremental hydropower the credits shall be calculated based
on the expected increase in average annual generation resulting from the
efficiency improvements or capacity additions. The number of credits shall be
calculated using the same water flow information used to determine a historic
average annual generation baseline for the hydroelectric facility and
certified by the Secretary or the Federal Energy Regulatory Commission. The
calculation of the credits for incremental hydropower shall not be based on
any operational changes at the hydroelectric facility not directly associated
with the efficiency improvements or capacity additions.
`(C) The Secretary shall issue two renewable energy credits for each
kilowatt-hour of electric energy generated and supplied to the grid in that
calendar year through the use of a renewable energy resource at an eligible
facility located on Indian land. For purposes of this paragraph, renewable
energy generated by biomass cofired with other fuels is eligible for two
credits only if the biomass was grown on the land eligible under this
paragraph.
`(D) For renewable energy resources produced from a generation offset,
the Secretary shall issue two renewable energy credits for each kilowatt-hour
generated.
`(E) To be eligible for a renewable energy credit, the unit of
electric energy generated through the use of a renewable energy resource may
be sold or may be used by the generator. If both a renewable energy resource
and a nonrenewable energy resource are used to generate the electric energy,
the Secretary shall issue credits based on the proportion of the renewable
energy resource used. The Secretary shall identify renewable energy credits by
type and date of generation.
`(5) When a generator sells electric energy generated through the use
of a renewable energy resource to a retail electric supplier under a contract
subject to section 210 of this Act, the retail electric supplier is treated as
the generator of the electric energy for the purposes of this section for the
duration of the contract.
`(6) The Secretary may issue credits for existing facility offsets to
be applied against a retail electric supplier's own required annual
percentage. The credits are not tradeable and may only be used in the calendar
year generation actually occurs.
`(e) CREDIT TRADING- A renewable energy credit may be sold or
exchanged by the entity to whom issued or by any other entity who acquires the
credit. A renewable energy credit for any year that is not used to satisfy the
minimum renewable generation requirement of subsection (a) for that year may
be carried forward for use within the next 4 years.
`(f) CREDIT BORROWING- At any time before the end of calendar year
2005, a retail electric supplier that has reason to believe it will not have
sufficient renewable energy credits to comply with subsection (a)
may--
`(1) submit a plan to the Secretary demonstrating that the retail
electric supplier will earn sufficient credits within the next 3 calendar
years which, when taken into account, will enable the retail electric
supplier's to meet the requirements of subsection (a) for calendar year 2005
and the subsequent calendar years involved; and
`(2) upon the approval of the plan by the Secretary, apply credits
that the plan demonstrates will be earned within the next 3 calendar years
to meet the requirements of subsection (a) for each calendar year
involved.
`(g) CREDIT COST CAP- The Secretary shall offer renewable energy
credits for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of
the average market value of credits for the applicable compliance period. On
January 1 of each year following calendar year 2005, the Secretary shall
adjust for inflation the price charged per credit for such calendar year,
based on the Gross Domestic Product Implicit Price Deflator.
`(h) ENFORCEMENT- The Secretary may bring an action in the appropriate
United States district court to impose a civil penalty on a retail electric
supplier that does not comply with subsection (a), unless the retail electric
supplier was unable to comply with subsection (a) for reasons outside of the
supplier's reasonable control (including weather-related damage, mechanical
failure, lack of transmission capacity or availability, strikes, lockouts,
actions of a governmental authority). A retail electric supplier who does not
submit the required number of renewable energy credits under subsection (a)
shall be subject to a civil penalty of not more than the greater of 3 cents or
200 percent of the average market value of credits for the compliance period
for each renewable energy credit not submitted.
`(i) INFORMATION COLLECTION- The Secretary may collect the information
necessary to verify and audit--
`(1) the annual electric energy generation and renewable energy
generation of any entity applying for renewable energy credits under this
section,
`(2) the validity of renewable energy credits submitted by a retail
electric supplier to the Secretary, and
`(3) the quantity of electricity sales of all retail electric
suppliers.
`(j) ENVIRONMENTAL SAVINGS CLAUSE- Incremental hydropower shall be
subject to all applicable environmental laws and licensing and regulatory
requirements.
`(k) STATE SAVINGS CLAUSE- This section does not preclude a State from
requiring additional renewable energy generation in that State, or from
specifying technology mix.
`(l) DEFINITIONS- For purposes of this section:
`(1) BIOMASS- The term `biomass' means any organic material that is
available on a renewable or recurring basis, including dedicated energy
crops, trees grown for energy production, wood waste and wood residues,
plants (including aquatic plants, grasses, and agricultural crops),
residues, fibers, animal wastes and other organic waste materials, and fats
and oils, except that with respect to material removed from National Forest
System lands the term includes only organic material from--
`(A) thinnings from trees that are less than 12 inches in
diameter;
`(2) ELIGIBLE FACILITY- The term `eligible facility'
means--
`(A) a facility for the generation of electric energy from a
renewable energy resource that is placed in service on or after the date
of enactment of this section; or
`(B) a repowering or cofiring increment that is placed in service
on or after the date of enactment of this section at a facility for the
generation of electric energy from a renewable energy resource that was
placed in service before that date.
`(3) ELIGIBLE RENEWABLE ENERGY RESOURCE- The term `renewable energy
resource' means solar, wind, ocean, or geothermal energy, biomass (excluding
solid waste and paper that is commonly recycled), landfill gas, a generation
offset, or incremental hydropower.
`(4) GENERATION OFFSET- The term `generation offset' means reduced
electricity usage metered at a site where a customer consumes energy from a
renewable energy technology.
`(5) EXISTING FACILITY OFFSET- The term `existing facility offset'
means renewable energy generated from an existing facility, not classified
as an eligible facility, that is owned or under contract to a retail
electric supplier on the date of enactment of this section.
`(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means
additional generation that is achieved from increased efficiency or
additions of capacity after the date of enactment of this section at a
hydroelectric dam that was placed in service before that date.
`(7) INDIAN LAND- The term `Indian land' means--
`(A) any land within the limits of any Indian reservation, pueblo,
or rancheria,
`(B) any land not within the limits of any Indian reservation,
pueblo, or rancheria title to which was on the date of enactment of this
paragraph either held by the United States for the benefit of any Indian
tribe or individual or held by any Indian tribe or individual subject to
restriction by the United States against alienation,
`(C) any dependent Indian community, and
`(D) any land conveyed to any Alaska Native corporation under the
Alaska Native Claims Settlement Act.
`(8) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe,
band, nation, or other organized group or community, including any Alaskan
Native village or regional or village corporation as defined in or
established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C.
1601 et seq.), which is recognized as eligible for the special programs and
services provided by the United States to Indians because of their status as
Indians.
`(9) RENEWABLE ENERGY- The term `renewable energy' means electric
energy generated by a renewable energy resource.
`(10) RENEWABLE ENERGY RESOURCE- The term `renewable energy
resource' means solar, wind, ocean, or geothermal energy, biomass (including
municipal solid waste), landfill gas, a generation offset, or incremental
hydropower.
`(11) REPOWERING OR COFIRING INCREMENT- The term `repowering or
cofiring increment' means the additional generation from a modification that
is placed in service on or after the date of enactment of this section to
expand electricity production at a facility used to generate electric energy
from a renewable energy resource or to cofire biomass that was placed in
service before the date of enactment of this section, or the additional
generation above the average generation in the 3 years preceding the date of
enactment of this section, to expand electricity production at a facility
used to generate electric energy from a renewable energy resource or to
cofire biomass that was placed in service before the date of enactment of
this section.
`(12) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier'
means a person that sells electric energy to electric consumers and sold not
less than 1,000,000 megawatt-hours of electric energy to electric consumers
for purposes other than resale during the preceding calendar year; except
that such term does not include the United States, a State or any political
subdivision of a State, or any agency, authority, or instrumentality of any
one or more of the foregoing, or a rural electric cooperative.
`(13) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail
electric supplier's base amount' means the total amount of electric energy
sold by the retail electric supplier to electric customers during the most
recent calendar year for which information is available, excluding electric
energy generated by--
`(A) an eligible renewable energy resource;
`(B) municipal solid waste; or
`(C) a hydroelectric facility.
`(m) SUNSET- This section expires December 31, 2030.'.
SEC. 265. RENEWABLE ENERGY ON FEDERAL LAND.
(a) COST-SHARE DEMONSTRATION PROGRAM- Within 12 months after the date
of enactment of this section, the Secretaries of the Interior, Agriculture,
and Energy shall develop guidelines for a cost-share demonstration program for
the development of wind and solar energy facilities on Federal land.
(b) DEFINITION OF FEDERAL LAND- As used in this section, the term
`Federal land' means land owned by the United States that is subject to the
operation of the mineral leasing laws; and is either--
(1) public land as defined in section 103(e) of the Federal Land
Policy and Management Act of 1976 (42 U.S.C. 1702(e)); or
(2) a unit of the National Forest System as that term is used in
section 11(a) of the Forest and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1609(a)).
(c) RIGHTS-OF-WAY- The demonstration program shall provide for the
issuance of rights-of-way pursuant to the provisions of title V of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.) by the
Secretary of the Interior with respect to Federal land under the jurisdiction
of the Department of the Interior, and by the Secretary of Agriculture with
respect to Federal lands under the jurisdiction of the Department of
Agriculture.
(d) AVAILABLE SITES- For purposes of this demonstration program, the
issuance of rights-of-way shall be limited to areas--
(1) of high energy potential for wind or solar
development;
(2) that have been identified by the wind or solar energy industry,
through a process of nomination, application, or otherwise, as being of
particular interest to one or both industries;
(3) that are not located within roadless areas;
(4) where operation of wind or solar facilities would be compatible
with the scenic, recreational, environmental, cultural, or historic values
of the Federal land, and would not require the construction of new roads for
the siting of lines or other transmission facilities; and
(5) where issuance of the right-of-way is consistent with the land
and resource management plans of the relevant land management
agencies.
(e) COST-SHARE PAYMENTS BY DOE- The Secretary of Energy, in
cooperation with the Secretary of the Interior with respect to Federal land
under the jurisdiction of the Department of the Interior, and the Secretary of
Agriculture with respect to Federal land under the jurisdiction of the
Department of Agriculture, shall determine if the portion of a project on
Federal land is eligible for financial assistance pursuant to this section.
Only those projects that are consistent with the requirements of this section
and further the purposes of this section shall be eligible. In the event a
project is selected for financial assistance, the Secretary of Energy shall
provide no more than 15 percent of the costs of the project on the Federal
land, and the remainder of the costs shall be paid by non-Federal
sources.
(f) REVISION OF LAND USE PLANS- The Secretary of the Interior shall
consider development of wind and solar energy, as appropriate, in revisions of
land use plans under section 202 of the Federal Land Policy and Management Act
of 1976 (42 U.S.C. 1712); and the Secretary of Agriculture shall consider
development of wind and solar energy, as appropriate, in revisions of land and
resource management plans under section 5 of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). Nothing in this
subsection shall preclude the issuance of a right-of-way for the development
of a wind or solar energy project prior to the revision of a land use plan by
the appropriate land management agency.
(g) REPORT TO CONGRESS- Within 24 months after the date of enactment
of this section, the Secretary of the Interior shall develop and report to
Congress recommendations on any statutory or regulatory changes the Secretary
believes would assist in the development of renewable energy on Federal land.
The report shall include--
(1) a five-year plan developed by the Secretary of the Interior, in
cooperation with the Secretary of Agriculture, for encouraging the
development of wind and solar energy on Federal land in an environmentally
sound manner; and
(A) whether the use of rights-of-ways is the best means of
authorizing use of Federal land for the development of wind and solar
energy, or whether such resources could be better developed through a
leasing system, or other method;
(B) the desirability of grants, loans, tax credits or other
provisions to promote wind and solar energy development on Federal land;
and
(C) any problems, including environmental concerns, which the
Secretary of the Interior or the Secretary of Agriculture have encountered
in managing wind or solar energy projects on Federal land, or believe are
likely to arise in relation to the development of wind or solar energy on
Federal land;
(3) a list, developed in consultation with the Secretaries of Energy
and Defense, of lands under the jurisdiction of the Departments of Energy
and Defense that would be suitable for development for wind or solar energy,
and recommended statutory and regulatory mechanisms for such
development.
(h) NATIONAL ACADEMY OF SCIENCES STUDY- Within 90 days after the
enactment of this Act, the Secretary of the Interior shall contract with the
National Academy of Sciences to study the potential for the development of
wind, solar, and ocean energy on the Outer Continental Shelf; assess existing
Federal authorities for the development of such resources; and recommend
statutory and regulatory mechanisms for such development. The results of the
study shall be transmitted to Congress within 24 months after the enactment of
this Act.
Subtitle F--General Provisions
SEC. 271. CHANGE 3 CENTS TO 1.5 CENTS.
Not withstanding any other provision in this Act, `3 cents' shall be
considered by law to be `1.5 cents' in any place `3 cents' appears in title II
of this Act.
SEC. 272. BONNEVILLE POWER ADMINISTRATION BONDS.
Section 13 of the Federal Columbia River Transmission System Act (16
U.S.C. 838k) is amended--
(1) by striking the section heading and all that follows through
`(a) The Administrator' and inserting the following:
`SEC. 13. BONNEVILLE POWER ADMINISTRATION BONDS.
`(1) IN GENERAL- The Administrator'; and
(2) by adding at the end the following:
`(2) ADDITIONAL BORROWING AUTHORITY- In addition to the borrowing
authority of the Administrator authorized under paragraph (1) or any other
provision of law, an additional $1,300,000,000 is made available, to remain
outstanding at any one time--
`(A) to provide funds to assist in financing the construction,
acquisition, and replacement of the transmission system of the Bonneville
Power Administration; and
`(B) to implement the authorities of the Administrator under the
Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C.
839 et seq.).'.
TITLE III--HYDROELECTRIC RELICENSING
SEC. 301. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) ALTERNATIVE MANDATORY CONDITIONS- Section 4 of the Federal Power
Act (16 U.S.C. 797) is amended by adding at the end the following:
`(h)(1) Whenever any person applies for a license for any project
works within any reservation of the United States under subsection (e), and
the Secretary of the department under whose supervision such reservation falls
(in this subsection referred to as the `Secretary') shall deem a condition to
such license to be necessary under the first proviso of such section, the
license applicant may propose an alternative condition.
`(2) Notwithstanding the first proviso of subsection (e), the
Secretary of the department under whose supervision the reservation falls
shall accept the proposed alternative condition referred to in paragraph (1),
and the Commission shall include in the license such alternative condition, if
the Secretary of the appropriate department determines, based on substantial
evidence provided by the license applicant, that the alternative
condition--
`(A) provides for the adequate protection and utilization of the
reservation; and
`(i) cost less to implement, or
`(ii) result in improved operation of the project works for
electricity production as compared to the condition initially deemed
necessary by the Secretary.
`(3) The Secretary shall submit into the public record of the
Commission proceeding with any condition under subsection (e) or alternative
condition it accepts under this subsection a written statement explaining the
basis for such condition, and reason for not accepting any alternative
condition under this subsection, including the effects of the condition
accepted and alternatives not accepted on energy supply, distribution, cost,
and use, air quality, flood control, navigation, and drinking, irrigation, and
recreation water supply, based on such information as may be available to the
Secretary, including information voluntarily provided in a timely manner by
the applicant and others.
`(4) Nothing in this subsection shall prohibit other interested
parties from proposing alternative conditions.'.
(b) ALTERNATIVE FISHWAYS- Section 18 of the Federal Power Act (16
U.S.C. 811) is amended by--
(1) inserting `(a)' before the first sentence; and
(2) adding at the end the following:
`(b)(1) Whenever the Secretary of the Interior or the Secretary of
Commerce prescribes a fishway under this section, the license applicant or the
licensee may propose an alternative to such prescription to construct,
maintain, or operate a fishway.
`(2) Notwithstanding subsection (a), the Secretary of the Interior or
the Secretary of Commerce, as appropriate, shall accept and prescribe, and the
Commission shall require, the proposed alternative referred to in paragraph
(1), if the Secretary of the appropriate department determines, based on
substantial evidence provided by the licensee, that the alternative--
`(A) will be no less protective of the fish resources than the
fishway initially prescribed by the Secretary; and
`(i) cost less to implement, or
`(ii) result in improved operation of the project works for
electricity production as compared to the fishway initially prescribed by
the Secretary.
`(3) The Secretary shall submit into the public record of the
Commission proceeding with any prescription under subsection (a) or
alternative prescription it accepts under this subsection a written statement
explaining the basis for such prescription, and reason for not accepting any
alternative prescription under this subsection, including the effects of the
prescription accepted or alternative not accepted on energy supply,
distribution, cost, and use, air quality, flood control, navigation, and
drinking, irrigation, and recreation water supply, based on such information
as may be available to the Secretary, including information voluntarily
provided in a timely manner by the applicant and others.
`(4) Nothing in this subsection shall prohibit other interested
parties from proposing alternative prescriptions.'.
(c) TIME OF FILING APPLICATION- Section 15(c)(1) of the Federal Power
Act (16 U.S.C. 808(c)(1)) is amended by striking the first sentence and
inserting the following:
`(1) Each application for a new license pursuant to this section
shall be filed with the Commission--
`(A) at least 24 months before the expiration of the term of the
existing license in the case of licenses that expire prior to 2008;
and
`(B) at least 36 months before the expiration of the term of the
existing license in the case of licenses that expire in 2008 or any year
thereafter.'.
TITLE IV--INDIAN ENERGY
SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501-3506) is
amended by adding after section 2606 the following:
`SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
`(a) DEFINITIONS- For purposes of this section--
`(1) the term `Director' means the Director of the Office of Indian
Energy Policy and Programs established by section 217 of the Department of
Energy Organization Act, and
`(2) the term `Indian land' means--
`(A) any land within the limits of an Indian reservation, pueblo,
or rancheria;
`(B) any land not within the limits of an Indian reservation,
pueblo, or rancheria whose title is held--
`(i) in trust by the United States for the benefit of an Indian
tribe,
`(ii) by an Indian tribe subject to restriction by the United
States against alienation, or
`(iii) by a dependent Indian community; and
`(C) land conveyed to an Alaska Native Corporation under the
Alaska Native Claims Settlement Act.
`(b) INDIAN ENERGY EDUCATION PLANNING AND MANAGEMENT ASSISTANCE- (1)
The Director shall establish programs within the Office of Indian Energy
Policy and Programs to assist Indian tribes in meeting their energy education,
research and development, planning, and management needs.
`(2) The Director may make grants, on a competitive basis, to an
Indian tribe for--
`(A) renewable energy, energy efficiency, and conservation
programs;
`(B) studies and other activities supporting tribal acquisition of
energy supplies, services, and facilities;
`(C) planning, constructing, developing, operating, maintaining, and
improving tribal electrical generation, transmission, and distribution
facilities; and
`(D) developing, constructing, and interconnecting electric power
transmission facilities with transmission facilities owned and operated by a
Federal power marketing agency or an electric utility that provides open
access transmission service.
`(3) The Director may develop, in consultation with Indian tribes, a
formula for making grants under this section. The formula may take into
account the following--
`(A) the total number of acres of Indian land owned by an Indian
tribe;
`(B) the total number of households on the Indian tribe's Indian
land;
`(C) the total number of households on the Indian tribe's Indian
land that have no electricity service or are under-served; and
`(D) financial or other assets available to the Indian tribe from
any source.
`(4) In making a grant under paragraph (2), the Director shall give
priority to an application received from an Indian tribe that is not served or
is served inadequately by an electric utility, as that term is defined in
section 3(4) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2602(4)), or by a person, State agency, or any other non-Federal entity that
owns or operates a local distribution facility used for the sale of electric
energy to an electric consumer.
`(5) There are authorized to be appropriated to the Department of
Energy such sums as may be necessary to carry out the purposes of this
section.
`(6) The Secretary is authorized to promulgate such regulations as the
Secretary determines to be necessary to carry out the provisions of this
subsection.
`(c) LOAN GUARANTEE PROGRAM-
`(1) AUTHORITY- The Secretary may guarantee not more than 90 percent
of the unpaid principal and interest due on any loan made to any Indian
tribe for energy development, including the planning, development,
construction, and maintenance of electrical generation plants, and for
transmission and delivery mechanisms for electricity produced on Indian
land. A loan guaranteed under this subsection shall be made by--
`(A) a financial institution subject to the examination of the
Secretary; or
`(B) an Indian tribe, from funds of the Indian tribe, to another
Indian tribe.
`(2) AVAILABILITY OF APPROPRIATIONS- Amounts appropriated to cover
the cost of loan guarantees shall be available without fiscal year
limitation to the Secretary to fulfill obligations arising under this
subsection.
`(3) AUTHORIZATION OF APPROPRIATIONS- (A) There are authorized to be
appropriated to the Secretary such sums as may be necessary to cover the
cost of loan guarantees, as defined by section 502(5) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)).
`(B) There are authorized to be appropriated to the Secretary such
sums as may be necessary to cover the administrative expenses related to
carrying out the loan guarantee program established by this
subsection.
`(4) LIMITATION ON AMOUNT- The aggregate outstanding amount
guaranteed by the Secretary of Energy at any one time under this subsection
shall not exceed $2,000,000,000.
`(5) REGULATIONS- The Secretary is authorized to promulgate such
regulations as the Secretary determines to be necessary to carry out the
provisions of this subsection.
`(d) INDIAN ENERGY PREFERENCE- (1) An agency or department of the
United States Government may give, in the purchase of electricity, oil, gas,
coal, or other energy product or by-product, preference in such purchase to an
energy and resource production enterprise, partnership, corporation, or other
type of business organization majority or wholly owned and controlled by a
tribal government.
`(2) In implementing this subsection, an agency or department shall
pay no more than the prevailing market price for the energy product or
by-product and shall obtain no less than existing market terms and
conditions.
`(e) EFFECT ON OTHER LAWS- This section does not--
`(1) limit the discretion vested in an Administrator of a Federal
power marketing agency to market and allocate Federal power, or
`(2) alter Federal laws under which a Federal power marketing agency
markets, allocates, or purchases power.'.
SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
Title II of the Department of Energy Organization Act is amended by
adding at the end the following:
`OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
`SEC. 217. (a) There is established within the Department an Office of
Indian Energy Policy and Programs. This Office shall be headed by a Director,
who shall be appointed by the Secretary and compensated at the rate equal to
that of level IV of the Executive Schedule under section 5315 of title 5,
United States Code.
`(b) The Director shall provide, direct, foster, coordinate, and
implement energy planning, education, management, conservation, and delivery
programs of the Department that--
`(1) promote tribal energy efficiency and utilization;
`(2) modernize and develop, for the benefit of Indian tribes, tribal
energy and economic infrastructure related to natural resource development
and electrification;
`(3) preserve and promote tribal sovereignty and self determination
related to energy matters and energy deregulation;
`(4) lower or stabilize energy costs; and
`(5) electrify tribal members' homes and tribal lands.
`(c) The Director shall carry out the duties assigned the Secretary or
the Director under title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.).'.
SEC. 403. CONFORMING AMENDMENTS.
(a) AUTHORIZATION OF APPROPRIATIONS- Section 2603(c) of the Energy
Policy Act of 1992 (25 U.S.C. 3503(c)) is amended to read as follows:
`(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to carry out the purposes of this
section.'.
(b) TABLE OF CONTENTS- The table of contents of the Department of
Energy Act is amended by inserting after the item relating to section 216 the
following new item:
`Sec. 217. Office of Indian Energy Policy and Programs.'.
(c) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code,
is amended by inserting `Director, Office of Indian Energy Policy and
Programs, Department of Energy.' after `Inspector General, Department of
Energy.'.
SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.
(a) DEFINITIONS- For purposes of this section:
(1) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe,
band, nation, or other organized group or community, which is recognized as
eligible for the special programs and services provided by the United States
to Indians because of their status as Indians, except that such term does
not include any Regional Corporation as defined in section 3(g) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)).
(2) INTERESTED PARTY- The term `interested party' means a person
whose interests could be adversely affected by the decision of an Indian
tribe to grant a lease or right-of-way pursuant to this section.
(3) PETITION- The term `petition' means a written request submitted
to the Secretary for the review of an action (or inaction) of the Indian
tribe that is claimed to be in violation of the approved tribal
regulations.
(4) RESERVATION- The term `reservation' means--
(A) with respect to a reservation in a State other than Oklahoma,
all land that has been set aside or that has been acknowledged as having
been set aside by the United States for the use of an Indian tribe, the
exterior boundaries of which are more particularly defined in a final
tribal treaty, agreement, executive order, Federal statute, secretarial
order, or judicial determination;
(B) with respect to a reservation in the State of Oklahoma, all
land that is--
(i) within the jurisdictional area of an Indian tribe,
and
(ii) within the boundaries of the last reservation of such tribe
that was established by treaty, executive order, or secretarial
order.
(5) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
(6) TRIBAL LANDS- The term `tribal lands' means any tribal trust
lands, or other lands owned by an Indian tribe that are within such tribe's
reservation.
(b) LEASES INVOLVING GENERATION, TRANSMISSION, DISTRIBUTION OR ENERGY
PROCESSING FACILITIES- An Indian tribe may grant a lease of tribal land for
electric generation, transmission, or distribution facilities, or facilities
to process or refine renewable or nonrenewable energy resources developed on
tribal lands, and such leases shall not require the approval of the Secretary
if the lease is executed under tribal regulations approved by the Secretary
under this subsection and the term of the lease does not exceed 30
years.
(c) RIGHTS-OF-WAY FOR ELECTRIC GENERATION, TRANSMISSION, DISTRIBUTION
OR ENERGY PROCESSING FACILITIES- An Indian tribe may grant a right-of-way over
tribal lands for a pipeline or an electric transmission or distribution line
without separate approval by the Secretary, if--
(1) the right-of-way is executed under and complies with tribal
regulations approved by the Secretary and the term of the right-of-way does
not exceed 30 years; and
(2) the pipeline or electric transmission or distribution line
serves--
(A) an electric generation, transmission or distribution facility
located on tribal land, or
(B) a facility located on tribal land that processes or refines
renewable or nonrenewable energy resources developed on tribal
lands.
(d) RENEWALS- Leases or rights-of-way entered into under this
subsection may be renewed at the discretion of the Indian tribe in accordance
with the requirements of this section.
(e) TRIBAL REGULATION REQUIREMENTS- (1) The Secretary shall have the
authority to approve or disapprove tribal regulations required under this
subsection. The Secretary shall approve such tribal regulations if they are
comprehensive in nature, including provisions that address--
(A) securing necessary information from the lessee or right-of-way
applicant;
(B) term of the conveyance;
(C) amendments and renewals;
(D) consideration for the lease or right-of-way;
(E) technical or other relevant requirements;
(F) requirements for environmental review as set forth in paragraph
(3);
(G) requirements for complying with all applicable environmental
laws; and
(H) final approval authority.
(2) No lease or right-of-way shall be valid unless authorized in
compliance with the approved tribal regulations.
(3) An Indian tribe, as a condition of securing Secretarial approval
as contemplated in paragraph (1), must establish an environmental review
process that includes the following--
(A) an identification and evaluation of all significant
environmental impacts of the proposed action as compared to a no action
alternative;
(B) identification of proposed mitigation;
(C) a process for ensuring that the public is informed of and has an
opportunity to comment on the proposed action prior to tribal approval of
the lease or right-of-way; and
(D) sufficient administrative support and technical capability to
carry out the environmental review process.
(4) The Secretary shall review and approve or disapprove the
regulations of the Indian tribe within 180 days of the submission of such
regulations to the Secretary. Any disapproval of such regulations by the
Secretary shall be accompanied by written documentation that sets forth the
basis for the disapproval. The 180-day period may be extended by the Secretary
after consultation with the Indian tribe.
(5) If the Indian tribe executes a lease or right-of-way pursuant to
tribal regulations required under this subsection, the Indian tribe shall
provide the Secretary with--
(A) a copy of the lease or right-of-way document and all amendments
and renewals thereto; and
(B) in the case of regulations or a lease or right-of-way that
permits payment to be made directly to the Indian tribe, documentation of
the payments sufficient to enable the Secretary to discharge the trust
responsibility of the United States as appropriate under existing
law.
(6) The United States shall not be liable for losses sustained by any
party to a lease executed pursuant to tribal regulations under this
subsection, including the Indian tribe.
(7)(A) An interested party may, after exhaustion of tribal remedies,
submit, in a timely manner, a petition to the Secretary to review the
compliance of the Indian tribe with any tribal regulations approved under this
subsection. If upon such review, the Secretary determines that the regulations
were violated, the Secretary may take such action as may be necessary to
remedy the violation, including rescinding or holding the lease or
right-of-way in abeyance until the violation is cured. The Secretary may also
rescind the approval of the tribal regulations and reassume the responsibility
for approval of leases or rights-of-way associated with the facilities
addressed in this section.
(B) If the Secretary seeks to remedy a violation described in
subparagraph (A), the Secretary shall--
(i) make a written determination with respect to the regulations
that have been violated;
(ii) provide the Indian tribe with a written notice of the alleged
violation together with such written determination; and
(iii) prior to the exercise of any remedy or the rescission of the
approval of the regulations involved and reassumption of the lease or
right-of-way approval responsibility, provide the Indian tribe with a
hearing and a reasonable opportunity to cure the alleged
violation.
(C) The tribe shall retain all rights to appeal as provided by
regulations promulgated by the Secretary.
(f) AGREEMENTS- (1) Agreements between an Indian tribe and a business
entity that are directly associated with the development of electric
generation, transmission or distribution facilities, or facilities to process
or refine renewable or nonrenewable energy resources developed on tribal
lands, shall not separately require the approval of the Secretary pursuant to
section 18 of title 25, United States Code, so long as the activity that is
the subject of the agreement has been the subject of an environmental review
process pursuant to subsection (e) of this section.
(2) The United States shall not be liable for any losses or damages
sustained by any party, including the Indian tribe, that are associated with
an agreement entered into under this subsection.
(g) DISCLAIMER- Nothing in this section is intended to modify or
otherwise affect the applicability of any provision of the Indian Mineral
Leasing Act of 1938 (25 U.S.C. 396a-396g); Indian Mineral Development Act of
1982 (25 U.S.C. 2101-2108); Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1201-1328); any amendments thereto; or any other laws not
specifically addressed in this section.
SEC. 405. INDIAN MINERAL DEVELOPMENT ACT REVIEW.
(a) IN GENERAL- The Secretary of the Interior shall conduct a review
of the activities that have been conducted by the governments of Indian tribes
under the authority of the Indian Mineral Development Act of 1982 (25 U.S.C.
2101 et seq.).
(b) REPORT- Not later than 1 year after the date of the enactment of
this Act, the Secretary shall transmit to the Committee on Resources of the
House of Representatives and the Committee on Indian Affairs and the Committee
on Energy and Natural Resources of the Senate a report containing--
(1) the results of the review;
(2) recommendations designed to help ensure that Indian tribes have
the opportunity to develop their nonrenewable energy resources;
and
(3) an analysis of the barriers to the development of energy
resources on Indian land, including Federal policies and regulations, and
make recommendations regarding the removal of those barriers.
(c) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations as
provided in this subsection.
SEC. 406. RENEWABLE ENERGY STUDY.
(a) IN GENERAL- Not later than 2 years after the date of the enactment
of this Act, and once every 2 years thereafter, the Secretary of Energy shall
transmit to the Committees on Energy and Commerce and Resources of the House
of Representatives and the Committees on Energy and Natural Resources and
Indian Affairs of the Senate a report on energy consumption and renewable
energy development potential on Indian land. The report shall identify
barriers to the development of renewable energy by Indian tribes, including
Federal policies and regulations, and make recommendations regarding the
removal of such barriers.
(b) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations as
provided in this section.
SEC. 407. FEDERAL POWER MARKETING ADMINISTRATIONS.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501) (as
amended by section 201) is amended by adding at the end the following:
`SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.
`(a) DEFINITION OF ADMINISTRATOR- In this section, the term
`Administrator' means--
`(1) the Administrator of the Bonneville Power Administration;
or
`(2) the Administrator of the Western Area Power
Administration.
`(b) ASSISTANCE FOR TRANSMISSION STUDIES- (1) Each Administrator may
provide technical assistance to Indian tribes seeking to use the high-voltage
transmission system for delivery of electric power. The costs of such
technical assistance shall be funded--
`(A) by the Administrator using non-reimbursable funds appropriated
for this purpose, or
`(B) by the Indian tribe.
`(2) PRIORITY FOR ASSISTANCE FOR TRANSMISSION STUDIES- In providing
discretionary assistance to Indian tribes under paragraph (1), each
Administrator shall give priority in funding to Indian tribes that have
limited financial capability to conduct such studies.
`(c) POWER ALLOCATION STUDY- (1) Not later than 2 years after the date
of enactment of this Act, the Secretary of Energy shall transmit to the
Committees on Energy and Commerce and Resources of the House of
Representatives and the Committees on Energy and Natural Resources and Indian
Affairs of the Senate a report on Indian tribes' utilization of Federal power
allocations of the Western Area Power Administration, or power sold by the
Southwestern Power Administration, and the Bonneville Power Administration to
or for the benefit of Indian tribes in their service areas. The report shall
identify--
`(A) the amount of power allocated to tribes by the Western Area
Power Administration, and how the benefit of that power is utilized by the
tribes;
`(B) the amount of power sold to tribes by other Power Marketing
Administrations; and
`(C) existing barriers that impede tribal access to and utilization
of Federal power, and opportunities to remove such barriers and improve the
ability of the Power Marketing Administration to facilitate the utilization
of Federal power by Indian tribes.
`(2) The Power Marketing Administrations shall consult with Indian
tribes on a government-to-government basis in developing the report provided
in this section.
`(d) AUTHORIZATION FOR APPROPRIATION- There are authorized to be
appropriated to the Secretary of Energy such sums as may be necessary to carry
out the purposes of this section.'.
SEC. 408. FEASIBILITY STUDY OF COMBINED WIND AND HYDROPOWER
DEMONSTRATION PROJECT.
(a) STUDY- The Secretary of Energy, in coordination with the Secretary
of the Army and the Secretary of the Interior, shall conduct a study of the
cost and feasibility of developing a demonstration project that would use wind
energy generated by Indian tribes and hydropower generated by the Army Corps
of Engineers on the Missouri River to supply firming power to the Western Area
Power Administration.
(b) SCOPE OF STUDY- The study shall--
(1) determine the feasibility of the blending of wind energy and
hydropower generated from the Missouri River dams operated by the Army Corps
of Engineers;
(2) review historical purchase requirements and projected purchase
requirements for firming and the patterns of availability and use of firming
energy;
(3) assess the wind energy resource potential on tribal lands and
projected cost savings through a blend of wind and hydropower over a
thirty-year period;
(4) include a preliminary interconnection study and a determination
of resource adequacy of the Upper Great Plains Region of the Western Area
Power Administration;
(5) determine seasonal capacity needs and associated transmission
upgrades for integration of tribal wind generation; and
(6) include an independent tribal engineer as a study team
member.
(c) REPORT- The Secretary of Energy and Secretary of the Army shall
submit a report to Congress not later than 1 year after the date of enactment
of this title. The Secretaries shall include in the report--
(1) an analysis of the potential energy cost savings to the
customers of the Western Area Power Administration through the blend of wind
and hydropower;
(2) an evaluation of whether a combined wind and hydropower system
can reduce reservoir fluctuation, enhance efficient and reliable energy
production and provide Missouri River management flexibility;
(3) recommendations for a demonstration project which the Western
Area Power Administration could carry out in partnership with an Indian
tribal government or tribal government energy consortium to demonstrate the
feasibility and potential of using wind energy produced on Indian lands to
supply firming energy to the Western Area Power Administration or other
Federal power marketing agency; and
(4) an identification of the economic and environmental benefits to
be realized through such a Federal-tribal partnership and identification of
how such a partnership could contribute to the energy security of the United
States.
(d) CONSULTATION- The Secretary shall consult with Indian tribes on a
government-to-government basis in developing the report and recommendations
provided in this section.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated $500,000 to carry out this section, which shall remain available
until expended. All costs incurred by the Western Area Power Administration
associated with performing the tasks required under this section shall be
nonreimbursable.
TITLE V--NUCLEAR POWER
Subtitle A--Price-Anderson Act Reauthorization
SEC. 501. SHORT TITLE.
This subtitle may be cited as the `Price-Anderson Amendments Act of
2002'.
SEC. 502. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) INDEMNIFICATION OF NUCLEAR REGULATORY COMMISSION LICENSEES-
Section 170c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is
amended--
(1) in the subsection heading, by striking `LICENSES' and inserting
`LICENSEES'; and
(2) by striking `August 1, 2002' each place it appears and inserting
`August 1, 2012'.
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section
170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is
amended by striking `, until August 1, 2002,'.
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL INSTITUTIONS- Section
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended by
striking `August 1, 2002' each place it appears and inserting `August 1,
2012'.
SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section 170d.
of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking
paragraph (2) and inserting the following:
`(2) In agreements of indemnification entered into under paragraph
(1), the Secretary--
`(A) may require the contractor to provide and maintain financial
protection of such a type and in such amounts as the Secretary shall
determine to be appropriate to cover public liability arising out of or in
connection with the contractual activity; and
`(B) shall indemnify the persons indemnified against such
liability above the amount of the financial protection required, in the
amount of $10,000,000,000 (subject to adjustment for inflation under
subsection t.), in the aggregate, for all persons indemnified in
connection with such contract and for each nuclear incident, including
such legal costs of the contractor as are approved by the
Secretary.'.
(b) CONTRACT AMENDMENTS- Section 170d. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph (3) and
inserting the following:
`(3) All agreements of indemnification under which the Department of
Energy (or its predecessor agencies) may be required to indemnify any person
under this section shall be deemed to be amended, on the date of the
enactment of the Price-Anderson Amendments Act of 2002, to reflect the
amount of indemnity for public liability and any applicable financial
protection required of the contractor under this subsection.'.
(c) LIABILITY LIMIT- Section 170e.(1)(B) of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
(1) by striking `the maximum amount of financial protection required
under subsection b. or'; and
(2) by striking `paragraph (3) of subsection d., whichever amount is
more' and inserting `paragraph (2) of subsection d.'.
SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.
(a) AMOUNT OF INDEMNIFICATION- Section 170d.(5) of the Atomic Energy
Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking `$100,000,000' and
inserting `$500,000,000'.
(b) LIABILITY LIMIT- Section 170e.(4) of the Atomic Energy Act of 1954
(42 U.S.C. 2210(e)(4)) is amended by striking `$100,000,000' and inserting
`$500,000,000'.
SEC. 505. REPORTS.
Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) is
amended by striking `August 1, 1998' and inserting `August 1, 2008'.
SEC. 506. INFLATION ADJUSTMENT.
Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) is
amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by adding after paragraph (1) the following:
`(2) The Secretary shall adjust the amount of indemnification
provided under an agreement of indemnification under subsection d. not less
than once during each 5-year period following July 1, 2002, in accordance
with the aggregate percentage change in the Consumer Price Index
since--
`(A) that date, in the case of the first adjustment under this
paragraph; or
`(B) the previous adjustment under this paragraph.'.
SEC. 507. CIVIL PENALTIES.
(a) REPEAL OF AUTOMATIC REMISSION- Section 234Ab.(2) of the Atomic
Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by striking the last
sentence.
(b) LIMITATION FOR NOT-FOR-PROFIT INSTITUTIONS- Subsection d. of
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is amended
to read as follows:
`d.(1) Notwithstanding subsection a., in the case of any
not-for-profit contractor, subcontractor, or supplier, the total amount of
civil penalties assessed under subsection a. may not exceed the total amount
of fees paid within any one-year period (as determined by the Secretary)
under the contract under which the violation occurs.
`(2) For purposes of this section, the term `not-for-profit' means
that no part of the net earnings of the contractor, subcontractor, or
supplier inures, or may lawfully inure, to the benefit of any natural person
or for-profit artificial person.'.
(c) EFFECTIVE DATE- The amendments made by this section shall not
apply to any violation of the Atomic Energy Act of 1954 occurring under a
contract entered into before the date of enactment of this section.
SEC. 508. TREATMENT OF MODULAR REACTORS.
Section 170b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) is
amended by adding at the end the following:
`(5)(A) For purposes of this section only, the Commission shall
consider a combination of facilities described in subparagraph (B) to be a
single facility having a rated capacity of 100,000 electrical kilowatts or
more.
`(B) A combination of facilities referred to in subparagraph (A) is
two or more facilities located at a single site, each of which has a rated
capacity of 100,000 electrical kilowatts or more but not more than 300,000
electrical kilowatts, with a combined rated capacity of not more than
1,300,000 electrical kilowatts.'.
SEC. 509. EFFECTIVE DATE.
The amendments made by sections 503(a) and 504 do not apply to any
nuclear incident that occurs before the date of the enactment of this
subtitle.
Subtitle B--Miscellaneous Provisions
SEC. 511. URANIUM SALES.
(a) INVENTORY SALES- Section 3112(d) of the USEC Privatization Act (42
U.S.C. 2297h-10(d)) is amended to read as follows:
`(d) INVENTORY SALES- (1) In addition to the transfers authorized
under subsections (b), (c), and (e), the Secretary may, from time to time,
sell or transfer uranium (including natural uranium concentrates, natural
uranium hexafluoride, enriched uranium, and depleted uranium) from the
Department of Energy's stockpile.
`(2) Except as provided in subsections (b), (c), and (e), the
Secretary may not deliver uranium in any form for consumption by end users in
any year in excess of the following amounts:
`Annual Maximum Deliveries to End Users
(Million lbs. U3O8
`Year:
equivalent)
--3
--5
--5
--7
2013 and each year thereafter-
--10.
`(3) Except as provided in subsections (b), (c), and (e), no sale or
transfer of uranium in any form shall be made unless--
`(A) the President determines that the material is not necessary for
national security needs;
`(B) the Secretary determines, based on the written views of the
Secretary of State and the Assistant to the President for National Security
Affairs, that the sale or transfer will not adversely affect the national
security interests of the United States;
`(C) the Secretary determines that the sale of the material will not
have an adverse material impact on the domestic uranium mining, conversion,
or enrichment industry, taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agreement; and
`(D) the price paid to the Secretary will not be less than the fair
market value of the material.'.
(b) EXEMPT TRANSFERS AND SALES- Section 3112(e) of the USEC
Privatization Act (42 U.S.C. 2297h-10(e)) is amended to read as
follows:
`(e) EXEMPT SALES OR TRANSFERS- Notwithstanding subsection (d)(2), the
Secretary may transfer or sell uranium--
`(1) to the Tennessee Valley Authority for use pursuant to the
Department of Energy's highly enriched uranium or tritium program, to the
extent provided by law;
`(2) to research and test reactors under the University Reactor Fuel
Assistance and Support Program or the Reduced Enrichment for Research and
Test Reactors Program;
`(3) to USEC Inc. to replace contaminated uranium received from the
Department of Energy when the United States Enrichment Corporation was
privatized;
`(4) to any person for emergency purposes in the event of a
disruption in supply to end users in the United States; and
`(5) to any person for national security purposes, as determined by
the Secretary.'.
SEC. 512. REAUTHORIZATION OF THORIUM REIMBURSEMENT.
(a) REIMBURSEMENT OF THORIUM LICENSEES- Section 1001(b)(2)(C) of the
Energy Policy Act of 1992 (42 U.S.C. 2296a) is amended--
(1) by striking `$140,000,000' and inserting `$365,000,000';
and
(2) by adding at the end the following: `Such payments shall not
exceed the following amounts:
`(i) $90,000,000 in fiscal year 2002.
`(ii) $55,000,000 in fiscal year 2003.
`(iii) $20,000,000 in fiscal year 2004.
`(iv) $20,000,000 in fiscal year 2005.
`(v) $20,000,000 in fiscal year 2006.
`(vi) $20,000,000 in fiscal year 2007.
Any amounts authorized to be paid in a fiscal year under this
subparagraph that are not paid in that fiscal year may be paid in
subsequent fiscal years.'.
(b) AUTHORIZATION OF APPROPRIATIONS- Section 1003(a) of the Energy
Policy Act of 1992 (42 U.S.C. 2296a-2) is amended by striking `$490,000,000'
and inserting `$715,000,000'.
(c) DECONTAMINATION AND DECOMMISSIONING FUND- Section 1802(a) of the
Atomic Energy Act of 1954 (42 U.S.C. 2297g-1(a)) is amended--
(1) by striking `$488,333,333' and inserting `$518,233,333';
and
(2) by inserting after `inflation' the following: `beginning on the
date of enactment of the Energy Policy Act of 1992'.
SEC. 513. FAST FLUX TEST FACILITY.
The Secretary of Energy shall not reactivate the Fast Flux Test
Facility to conduct--
(1) any atomic energy defense activity,
(2) any space-related mission, or
(3) any program for the production or utilization of nuclear
material if the Secretary has determined, in a record of decision, that the
program can be carried out at existing operating facilities.
SEC. 514. NUCLEAR POWER 2010.
(a) DEFINITIONS- In this section:
(1) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(2) OFFICE- The term `Office' means the Office of Nuclear Energy
Science and Technology of the Department of Energy.
(3) DIRECTOR- The term `Director' means the Director of the Office
of Nuclear Energy Science and Technology of the Department of
Energy.
(4) PROGRAM- The term `Program' means the Nuclear Power 2010
Program.
(b) ESTABLISHMENT- The Secretary shall carry out a program, to be
managed by the Director.
(c) PURPOSE- The program shall aggressively pursue those activities
that will result in regulatory approvals and design completion in a phased
approach, with joint government/industry cost sharing, which would allow for
the construction and startup of new nuclear plants in the United States by
2010.
(d) ACTIVITIES- In carrying out the program, the Director
shall--
(1) issue a solicitation to industry seeking proposals from joint
venture project teams comprised of reactor vendors and power generation
companies to participate in the Nuclear Power 2010 program;
(2) seek innovative business arrangements, such as consortia among
designers, constructors, nuclear steam supply systems and major equipment
suppliers, and plant owner/operators, with strong and common incentives to
build and operate new plants in the United States;
(3) conduct the Nuclear Power 2010 program consistent with the
findings of `A Roadmap to Deploy New Nuclear Power Plants in the United
States by 2010' issued by the Near-Term Deployment Working Group of the
Nuclear Energy Research Advisory Committee of the Department of
Energy;
(4) rely upon the expertise and capabilities of the Department of
Energy national laboratories and sites in the areas of advanced nuclear fuel
cycles and fuels testing, giving consideration to existing lead laboratory
designations and the unique capabilities and facilities available at each
national laboratory and site;
(5) pursue deployment of both water-cooled and gas-cooled reactor
designs on a dual track basis that will provide maximum potential for the
success of both;
(6) include participation of international collaborators in research
and design efforts where beneficial; and
(7) seek to accomplish the essential regulatory and technical work,
both generic and design-specific, to make possible new nuclear plants within
this decade.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary to carry out the purposes of this section such
sums as are necessary for fiscal year 2003 and for each fiscal year
thereafter.
SEC. 515. OFFICE OF SPENT NUCLEAR FUEL RESEARCH.
(a) FINDINGS- Congress finds that--
(1) before the Federal Government takes any irreversible action
relating to the disposal of spent nuclear fuel, Congress must determine
whether the spent fuel in the repository should be treated as waste subject
to permanent burial or should be considered an energy resource that is
needed to meet future energy requirements; and
(2) national policy on spent nuclear fuel may evolve with time as
improved technologies for spent fuel are developed or as national energy
needs evolve.
(b) DEFINITIONS- In this section:
(1) ASSOCIATE DIRECTOR- The term `Associate Director' means the
Associate Director of the Office.
(2) OFFICE- The term `Office' means the Office of Spent Nuclear Fuel
Research within the Office of Nuclear Energy Science and Technology of the
Department of Energy.
(c) ESTABLISHMENT- There is established an Office of Spent Nuclear
Fuel Research within the Office of Nuclear Energy Science and Technology of
the Department of Energy.
(d) HEAD OF OFFICE- The Office shall be headed by the Associate
Director, who shall be a member of the Senior Executive Service appointed by
the Director of the Office of Nuclear Energy Science and Technology, and
compensated at a rate determined by applicable law.
(e) DUTIES OF THE ASSOCIATE DIRECTOR-
(1) IN GENERAL- The Associate Director shall be responsible for
carrying out an integrated research, development, and demonstration program
on technologies for treatment, recycling, and disposal of high-level nuclear
radioactive waste and spent nuclear fuel, subject to the general supervision
of the Secretary.
(2) PARTICIPATION- The Associate Director shall coordinate the
participation of national laboratories, universities, the commercial nuclear
industry, and other organizations in the investigation of technologies for
the treatment, recycling, and disposal of spent nuclear fuel and high-level
radioactive waste.
(3) ACTIVITIES- The Associate Director shall--
(A) develop a research plan to provide recommendations by
2015;
(B) identify promising technologies for the treatment, recycling,
and disposal of spent nuclear fuel and high-level radioactive
waste;
(C) conduct research and development activities for promising
technologies;
(D) ensure that all activities include as key objectives
minimization of proliferation concerns and risk to the health of the
general public or site workers, as well as development of cost-effective
technologies;
(E) require research on both reactor- and accelerator-based
transmutation systems;
(F) require research on advanced processing and
separations;
(G) include participation of international collaborators in
research efforts, and provide funding to a collaborator that brings unique
capabilities not available in the United States if the country in which
the collaborator is located is unable to provide for their support;
and
(H) ensure that research efforts are coordinated with research on
advanced fuel cycles and reactors conducted by the Office of Nuclear
Energy Science and Technology.
(f) GRANT AND CONTRACT AUTHORITY- The Secretary may make grants, or
enter into contracts, for the purposes of the research projects and activities
described in this section.
(g) REPORT- The Associate Director shall annually submit to Congress a
report on the activities and expenditures of the Office that describes the
progress being made in achieving the objectives of this section.
SEC. 516. DECOMMISSIONING PILOT PROGRAM.
(a) PILOT PROGRAM- The Secretary of Energy shall establish a
decommissioning pilot program to decommission and decontaminate the
sodium-cooled fast breeder experimental test-site reactor located in northwest
Arkansas in accordance with the decommissioning activities contained in the
August 31, 1998, Department of Energy report on the reactor.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to carry out this section $16,000,000.
Subtitle C--Growth of Nuclear Energy
SEC. 521. COMBINED LICENSE PERIODS.
Section 103c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) is
amended--
(1) by striking `c. Each such' and inserting the
following:
`(1) IN GENERAL- Each such'; and
(2) by adding at the end the following:
`(2) COMBINED LICENSES- In the case of a combined construction and
operating license issued under section 185(b), the duration of the operating
phase of the license period shall not be less than the duration of the
operating license if application had been made for separate construction and
operating licenses.'.
Subtitle D--NRC Regulatory Reform
SEC. 531. ANTITRUST REVIEW.
(a) IN GENERAL- Section 105 of the Atomic Energy Act of 1954 (42
U.S.C. 2135) is amended by adding at the end the following:
`(1) NOTIFICATION- Except as provided in paragraph (4), when the
Commission proposes to issue a license under section 103 or 104b., the
Commission shall notify the Attorney General of the proposed license and the
proposed terms and conditions of the license.
`(2) ACTION BY THE ATTORNEY GENERAL- Within a reasonable time (but
not more than 90 days) after receiving notification under paragraph (1), the
Attorney General shall submit to the Commission and publish in the Federal
Register a determination whether, insofar as the Attorney General is able to
determine, the proposed license would tend to create or maintain a situation
inconsistent with the antitrust laws.
`(3) INFORMATION- On the request of the Attorney General, the
Commission shall furnish or cause to be furnished such information as the
Attorney General determines to be appropriate or necessary to enable the
Attorney General to make the determination under paragraph (2).
`(4) APPLICABILITY- This subsection shall not apply to such classes
or type of licenses as the Commission, with the approval of the Attorney
General, determines would not significantly affect the activities of a
licensee under the antitrust laws.'.
(b) CONFORMING AMENDMENT- Section 105c. of the Atomic Energy Act of
1954 (42 U.S.C. 2135(c)) is amended by adding at the end the
following:
`(9) APPLICABILITY- This subsection does not apply to an application
for a license to construct or operate a utilization facility under section
103 or 104b. that is filed on or after the date of enactment of subsection
d.'.
SEC. 532. DECOMMISSIONING.
(a) AUTHORITY OVER FORMER LICENSEES FOR DECOMMISSIONING FUNDING-
Section 161i. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(i)) is
amended--
(1) by striking `and (3)' and inserting `(3)'; and
(2) by inserting before the semicolon at the end the following: `,
and (4) to ensure that sufficient funds will be available for the
decommissioning of any production or utilization facility licensed under
section 103 or 104b., including standards and restrictions governing the
control, maintenance, use, and disbursement by any former licensee under
this Act that has control over any fund for the decommissioning of the
facility'.
(b) TREATMENT OF NUCLEAR REACTOR FINANCIAL OBLIGATIONS- Section 523 of
title 11, United States Code, is amended by adding at the end the
following:
`(f) TREATMENT OF NUCLEAR REACTOR FINANCIAL OBLIGATIONS-
Notwithstanding any other provision of this title--
`(1) any funds or other assets held by a licensee or former licensee
of the Nuclear Regulatory Commission, or by any other person, to satisfy the
responsibility of the licensee, former licensee, or any other person to
comply with a regulation or order of the Nuclear Regulatory Commission
governing the decontamination and decommissioning of a nuclear power reactor
licensed under section 103 or 104b. of the Atomic Energy Act of 1954 (42
U.S.C. 2133, 2134(b)) shall not be used to satisfy the claim of any creditor
in any proceeding under this title, other than a claim resulting from an
activity undertaken to satisfy that responsibility, until the
decontamination and decommissioning of the nuclear power reactor is
completed to the satisfaction of the Nuclear Regulatory
Commission;
`(2) obligations of licensees, former licensees, or any other person
to use funds or other assets to satisfy a responsibility described in
paragraph (1) may not be rejected, avoided, or discharged in any proceeding
under this title or in any liquidation, reorganization, receivership, or
other insolvency proceeding under Federal or State law; and
`(3) private insurance premiums and standard deferred premiums held
and maintained in accordance with section 170b. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(b)) shall not be used to satisfy the claim of any
creditor in any proceeding under this title, until the indemnification
agreement executed in accordance with section 170c. of that Act (42 U.S.C.
2210(c)) is terminated.'.
Subtitle E--NRC Personnel Crisis
SEC. 541. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is
amended by adding at the end the following:
`y. exempt from the application of sections 8344 and 8468 of title 5,
United States Code, an annuitant who was formerly an employee of the
Commission who is hired by the Commission as a consultant, if the Commission
finds that the annuitant has a skill that is critical to the performance of
the duties of the Commission.'.
SEC. 542. NRC TRAINING PROGRAM.
(a) IN GENERAL- In order to maintain the human resource investment and
infrastructure of the United States in the nuclear sciences, health physics,
and engineering fields, in accordance with the statutory authorities of the
Commission relating to the civilian nuclear energy program, the Nuclear
Regulatory Commission shall carry out a training and fellowship program to
address shortages of individuals with critical safety skills.
(b) AUTHORIZATION OF APPROPRIATIONS-
(1) IN GENERAL- There are authorized to be appropriated to carry out
this section $1,000,000 for each of fiscal years 2003 through
2006.
(2) AVAILABILITY- Funds made available under paragraph (1) shall
remain available until expended.
DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND
TRANSPORTATION
TITLE VI--OIL AND GAS PRODUCTION
SEC. 601. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM
RESERVE.
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT-
Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 et seq.) is
amended--
(1) by striking section 166 (42 U.S.C. 6246) and
inserting--
`SEC. 166. There are authorized to be appropriated to the Secretary
such sums as may be necessary to carry out this part, to remain available
until expended.'; and
(2) by striking part E (42 U.S.C. 6251; relating to the expiration
of title I of the Act) and its heading.
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CONSERVATION ACT-
Title II of the Energy Policy and Conservation Act (42 U.S.C. 6271 et seq.) is
amended--
(1) by striking section 256(h) (42 U.S.C. 6276(h)) and
inserting--
`(h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry out this
part, to remain available until expended.';
(2) by striking section 273(e) (42 U.S.C. 6283(e); relating to the
expiration of summer fill and fuel budgeting programs); and
(3) by striking part D (42 U.S.C. 6285; relating to the expiration
of title II of the Act) and its heading.
(c) TECHNICAL AMENDMENTS- The table of contents for the Energy Policy
and Conservation Act is amended by striking the items relating to part D of
title I and part D of title II.
SEC. 602. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.
(a) TIMELY ACTION ON LEASES AND PERMITS- To ensure timely action on
oil and gas leases and applications for permits to drill on lands otherwise
available for leasing, the Secretary of the Interior shall--
(1) ensure expeditious compliance with the requirements of section
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C));
(2) improve consultation and coordination with the States;
and
(3) improve the collection, storage, and retrieval of information
related to such leasing activities.
(b) IMPROVED ENFORCEMENT- The Secretary shall improve inspection and
enforcement of oil and gas activities, including enforcement of terms and
conditions in permits to drill.
(c) AUTHORIZATION OF APPROPRIATIONS- For each of the fiscal years 2003
through 2006, in addition to amounts otherwise authorized to be appropriated
for the purpose of carrying out section 17 of the Mineral Leasing Act (30
U.S.C. 226), there are authorized to be appropriated to the Secretary of the
Interior--
(1) $40,000,000 for the purpose of carrying out paragraphs (1)
through (3) of subsection (a); and
(2) $20,000,000 for the purpose of carrying out subsection
(b).
SEC. 603. OIL AND GAS LEASE ACREAGE LIMITATIONS.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) is
amended by inserting after `acreage held in special tar sand areas' the
following: `as well as acreage under any lease any portion of which has been
committed to a federally approved unit or cooperative plan or communitization
agreement, or for which royalty, including compensatory royalty or royalty in
kind, was paid in the preceding calendar year,'.
SEC. 604. ORPHANED AND ABANDONED WELLS ON FEDERAL LAND.
(a) ESTABLISHMENT- (1) The Secretary of the Interior, in cooperation
with the Secretary of Agriculture, shall establish a program to ensure within
3 years after the date of enactment of this Act, remediation, reclamation, and
closure of orphaned oil and gas wells located on lands administered by the
land management agencies within the Department of the Interior and the United
States Forest Service that are--
(C) idled for more than 5 years and having no beneficial
use.
(2) The program shall include a means of ranking critical sites for
priority in remediation based on potential environmental harm, other land use
priorities, and public health and safety.
(3) The program shall provide that responsible parties be identified
wherever possible and that the costs of remediation be recovered.
(4) In carrying out the program, the Secretary of the Interior shall
work cooperatively with the Secretary of Agriculture and the States within
which the Federal lands are located, and shall consult with the Secretary of
Energy, and the Interstate Oil and Gas Compact Commission.
(b) PLAN- Within 6 months from the date of enactment of this section,
the Secretary of the Interior, in cooperation with the Secretary of
Agriculture, shall prepare a plan for carrying out the program established
under subsection (a). Copies of the plan shall be transmitted to the Committee
on Energy and Natural Resources of the Senate and the Committee on Resources
of the House of Representatives.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of the Interior $5,000,000 for each of fiscal
years 2003 through 2005 to carry out the activities provided for in this
section.
SEC. 605. ORPHANED AND ABANDONED OIL AND GAS WELL PROGRAM.
(a) ESTABLISHMENT- The Secretary of Energy shall establish a program
to provide technical assistance to the various oil and gas producing States to
facilitate State efforts over a 10-year period to ensure a practical and
economical remedy for environmental problems caused by orphaned and abandoned
exploration or production well sites on State and private lands. The Secretary
shall work with the States, through the Interstate Oil and Gas Compact
Commission, to assist the States in quantifying and mitigating environmental
risks of onshore abandoned and orphaned wells on State and private
lands.
(b) PROGRAM ELEMENTS- The program should include--
(1) mechanisms to facilitate identification of responsible parties
wherever possible;
(2) criteria for ranking critical sites based on factors such as
other land use priorities, potential environmental harm and public
visibility; and
(3) information and training programs on best practices for
remediation of different types of sites.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Energy for the activities under this section
$5,000,000 for each of fiscal years 2003 through 2005 to carry out the
provisions of this section.
SEC. 606. OFFSHORE DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 U.S.C.
1334) is amended by adding at the end the following:
`(k) SUSPENSION OF OPERATIONS FOR SUBSALT EXPLORATION- Notwithstanding
any other provision of law or regulation, the Secretary may grant a request
for a suspension of operations under any lease to allow the lessee to
reprocess or reinterpret geologic or geophysical data beneath allocthonous
salt sheets, when in the Secretary's judgment such suspension is necessary to
prevent waste caused by the drilling of unnecessary wells, and to maximize
ultimate recovery of hydrocarbon resources under the lease. Such suspension
shall be limited to the minimum period of time the Secretary determines is
necessary to achieve the objectives of this subsection.'.
SEC. 607. COALBED METHANE STUDY.
(a) STUDY- The National Academy of Sciences shall conduct a study on
the effects of coalbed methane production on surface and water
resources.
(b) DATA ANALYSIS- The study shall analyze available hydrogeologic and
water quality data, along with other pertinent environmental or other
information to determine--
(1) adverse effects associated with surface or subsurface disposal
of waters produced during extraction of coalbed methane;
(2) depletion of groundwater aquifers or drinking water sources
associated with production of coalbed methane;
(3) any other significant adverse impacts to surface or water
resources associated with production of coalbed methane; and
(4) production techniques or other factors that can mitigate adverse
impacts from coalbed methane development.
(c) RECOMMENDATIONS- The study shall analyze existing Federal and
State laws and regulations, and make recommendations as to changes, if any, to
Federal law necessary to address adverse impacts to surface or water resources
attributable to coalbed methane development.
(d) COMPLETION OF STUDY- The National Academy of Sciences shall submit
the study to the Secretary of the Interior within 18 months after the date of
enactment of this Act, and shall make the study available to the public at the
same time.
(e) REPORT TO CONGRESS- The Secretary of the Interior shall report to
Congress within 6 months of her receipt of the study on--
(1) the findings and recommendations of the study;
(2) the Secretary's agreement or disagreement with each of its
findings and recommendations; and
(3) any recommended changes in funding to address the effects of
coalbed methane production on surface and water resources.
SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOVERY OF DOMESTIC OIL AND GAS
RESOURCES.
(a) EVALUATION- The Secretary of Energy, in coordination with the
Secretaries of the Interior, Commerce, and Treasury, Indian tribes and the
Interstate Oil and Gas Compact Commission, shall evaluate the impact of
existing Federal and State tax and royalty policies on the development of
domestic oil and gas resources and on revenues to Federal, State, local and
tribal governments.
(b) SCOPE- The evaluation under subsection (a) shall--
(1) analyze the impact of fiscal policies on oil and natural gas
exploration, development drilling, and production under different price
scenarios, including the impact of the individual and corporate Alternative
Minimum Tax, State and local production taxes and fixed royalty rates during
low price periods;
(2) assess the effect of existing Federal and State fiscal policies
on investment under different geological and developmental circumstances,
including but not limited to deepwater environments, subsalt formations,
deep and deviated wells, coalbed methane and other unconventional oil and
gas formations;
(3) assess the extent to which Federal and State fiscal policies
negatively impact the ultimate recovery of resources from existing fields
and smaller accumulations in offshore waters, especially in water depths
less than 800 meters, of the Gulf of Mexico;
(4) compare existing Federal and State policies with tax and royalty
regimes in other countries with particular emphasis on similar geological,
developmental and infrastructure conditions; and
(5) evaluate how alternative tax and royalty policies, including
counter-cyclical measures, could increase recovery of domestic oil and
natural gas resources and revenues to Federal, State, local and tribal
governments.
(c) POLICY RECOMMENDATIONS- Based upon the findings of the evaluation
under subsection (a), a report describing the findings and recommendations for
policy changes shall be provided to the President, the Congress, the Governors
of the member States of the Interstate Oil and Gas Compact Commission, and
Indian tribes having an oil and gas lease approved by the Secretary of the
Interior. The recommendations should ensure that the public interest in
receiving the economic benefits of tax and royalty revenues is balanced with
the broader national security and economic interests in maximizing recovery of
domestic resources. The report should include recommendations regarding
actions to--
(1) ensure stable development drilling during periods of low oil
and/or natural gas prices to maintain reserve replacement and
deliverability;
(2) minimize the negative impact of a volatile investment climate on
the oil and gas service industry and domestic oil and gas exploration and
production;
(3) ensure a consistent level of domestic activity to encourage the
education and retention of a technical workforce; and
(4) maintain production capability during periods of low oil and/or
natural gas prices.
(d) ROYALTY GUIDELINES- The recommendations required under (c) should
include guidelines for private resource holders as to the appropriate level of
royalties given geology, development cost, and the national interest in
maximizing recovery of oil and gas resources.
(e) REPORT- The study under subsection (a) shall be completed not
later than 18 months after the date of enactment of this section. The report
and recommendations required in (c) shall be transmitted to the President, the
Congress, Indian tribes, and the Governors of the member States of the
Interstate Oil and Gas Compact Commission.
SEC. 609. STRATEGIC PETROLEUM RESERVE.
(a) FULL CAPACITY- The President shall--
(1) fill the Strategic Petroleum Reserve established pursuant to
part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231
et seq.) to full capacity as soon as practicable;
(2) acquire petroleum for the Strategic Petroleum Reserve by the
most practicable and cost-effective means, including the acquisition of
crude oil the United States is entitled to receive in kind as royalties from
production on Federal lands; and
(3) ensure that the fill rate minimizes impacts on petroleum
markets.
(b) RECOMMENDATIONS- Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall submit to Congress a plan
to--
(1) eliminate any infrastructure impediments that may limit maximum
drawdown capability; and
(2) determine whether the capacity of the Strategic Petroleum
Reserve on the date of enactment of this section is adequate in light of the
increasing consumption of petroleum and the reliance on imported
petroleum.
SEC. 610. HYDRAULIC FRACTURING.
Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is
amended by adding at the end the following:
`(e) Hydraulic Fracturing for Oil and Gas Production-
`(1) Study of the effects of hydraulic fracturing-
`(A) IN GENERAL- As soon as practicable, but in no event later
than 24 months after the date of enactment of this subsection, the
Administrator shall complete a study of the known and potential effects on
underground drinking water sources of hydraulic fracturing, including the
effects of hydraulic fracturing on underground drinking water sources on a
nationwide basis, and within specific regions, States, or portions of
States.
`(B) CONSULTATION- In planning and conducting the study, the
Administrator shall consult with the Secretary of the Interior, the
Secretary of Energy, the Ground Water Protection Council, affected States,
and, as appropriate, representatives of environmental, industry, academic,
scientific, public health, and other relevant organizations. Such study
may be accomplished in conjunction with other ongoing studies related to
the effects of oil and gas production on groundwater
resources.
`(C) STUDY ELEMENTS- The study conducted under subparagraph (A)
shall, at a minimum, examine and make findings as to
whether--
`(i) such hydraulic fracturing has endangered or will endanger
(as defined under subsection (d)(2)) underground drinking water sources,
including those sources within specific regions, States or portions of
States;
`(ii) there are specific methods, practices, or hydrogeologic
circumstances in which hydraulic fracturing has endangered or will
endanger underground drinking water sources; and
`(iii) there are any precautionary actions that may reduce or
eliminate any such endangerment.
`(D) STUDY OF HYDRAULIC FRACTURING IN A PARTICULAR TYPE OF
GEOLOGIC FORMATION- The Administrator may also complete a separate study
on the known and potential effects on underground drinking water sources
of hydraulic fracturing in a particular type of geologic
formation:
`(i) If such a study is undertaken, the Administrator shall
follow the procedures for study preparation and independent scientific
review set forth in subparagraphs (1) (B) and (C) and (2) of this
subsection. The Administrator may complete this separate study prior to
the completion of the broader study of hydraulic fracturing required
pursuant to subparagraph (A) of this subsection.
`(ii) At the conclusion of independent scientific review for any
separate study, the Administrator shall determine, pursuant to paragraph
(3), whether regulation of hydraulic fracturing in the particular type
of geologic formation addressed in the separate study is necessary under
this part to ensure that underground sources of drinking water will not
be endangered on a nationwide basis, or within a specific region, State
or portions of a State. Subparagraph (4) of this subsection shall apply
to any such determination by the Administrator.
`(iii) If the Administrator completes a separate study, the
Administrator may use the information gathered in the course of such a
study in undertaking her broad study to the extent appropriate. The
broader study need not include a reexamination of the conclusions
reached by the Administrator in any separate study.
`(2) INDEPENDENT SCIENTIFIC REVIEW-
`(A) IN GENERAL- Prior to the time the study under paragraph (1)
is completed, the Administrator shall enter into an appropriate agreement
with the National Academy of Sciences to have the Academy review the
conclusions of the study.
`(B) REPORT- Not later than 11 months after entering into an
appropriate agreement with the Administrator, the National Academy of
Sciences shall report to the Administrator, the Committee on Energy and
Commerce of the House of Representatives, and the Committee on Environment
and Public Works of the Senate, on the--
`(i) findings related to the study conducted by the
Administrator under paragraph (1);
`(ii) the scientific and technical basis for such findings;
and
`(iii) recommendations, if any, for modifying the findings of
the study.
`(3) REGULATORY DETERMINATION-
`(A) IN GENERAL- Not later than 6 months after receiving the
National Academy of Sciences report under paragraph (2), the Administrator
shall determine, after informal public hearings and public notice and
opportunity for comment, and based on information developed or accumulated
in connection with the study required under paragraph (1) and the National
Academy of Sciences report under paragraph (2), either--
`(i) that regulation of hydraulic fracturing under this part is
necessary to ensure that underground sources of drinking water will not
be endangered on a nationwide basis, or within a specific region, State
or portions of a State; or
`(ii) that regulation described under clause (i) is
unnecessary.
`(B) PUBLICATION OF DETERMINATION- The Administrator shall publish
the determination in the Federal Register, accompanied by an explanation
and the reasons for it.
`(4) PROMULGATION OF REGULATIONS-
`(A) REGULATION NECESSARY- If the Administrator determines under
paragraph (3) that regulation by hydraulic fracturing under this part is
necessary to ensure that hydraulic fracturing does not endanger
underground drinking water sources on a nationwide basis, or within a
specific region, State or portions of a State, the Administrator shall,
within 6 months after the issuance of that determination, and after public
notice and opportunity for comment, promulgate regulations under section
1421 (42 U.S.C. 300h) to ensure that hydraulic fracturing will not
endanger such underground sources of drinking water. However, for purposes
of the Administrator's approval or disapproval under section 1422 of any
State underground injection control program for regulating hydraulic
fracturing, a State at any time may make the alternative demonstration
provided for in section 1425 of this title.
`(B) REGULATION UNNECESSARY- The Administrator shall not regulate
or require States to regulate hydraulic fracturing under this part unless
the Administrator determines under paragraph (3) that such regulation is
necessary. This provision shall not apply to any State which has a program
for the regulation of hydraulic fracturing that was approved by the
Administrator under this part prior to the effective date of this
subsection.
`(C) EXISTING REGULATIONS- A determination by the Administrator
under paragraph (3) that regulation is unnecessary will relieve all States
(including those with existing approved programs for the regulation of
hydraulic fracturing) from any further obligation to regulate hydraulic
fracturing as an underground injection under this part.
`(5) DEFINITION OF HYDRAULIC FRACTURING- For purposes of this
subsection, the term `hydraulic fracturing' means the process of creating a
fracture in a reservoir rock, and injecting fluids and propping agents, for
the purposes of reservoir stimulation related to oil and gas production
activities.
`(6) SAVINGS- Nothing in this subsection shall in any way limit the
authorities of the Administrator under section 1431 (42 U.S.C.
300i).'.
SEC. 611. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator of the
Environmental Protection Agency $100,000 for fiscal year 2003, to remain
available until expended, for a grant to the State of Alabama to assist in the
implementation of its regulatory program under section 1425 of the Safe
Drinking Water Act.
SEC. 612. PRESERVATION OF OIL AND GAS RESOURCE DATA.
The Secretary of the Interior, through the United States Geological
Survey, may enter into appropriate arrangements with State agencies that
conduct geological survey activities to collect, archive, and provide public
access to data and study results regarding oil and natural gas resources. The
Secretary may accept private contributions of property and services for
purposes of this section.
SEC 613. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE
POWDER RIVER BASIN.
The Secretary of the Interior shall undertake a review of existing
authorities to resolve conflicts between the development of Federal coal and
the development of Federal and non-Federal coalbed methane in the Powder River
Basin in Wyoming and Montana. Not later than 90 days from enactment of this
Act, the Secretary shall report to Congress on her plan to resolve these
conflicts.
TITLE VII--NATURAL GAS PIPELINES
Subtitle A--Alaska Natural Gas Pipeline
SEC. 701. SHORT TITLE.
This subtitle may be cited as the `Alaska Natural Gas Pipeline Act of
2002'.
SEC. 702. FINDINGS.
(1) Construction of a natural gas pipeline system from the Alaskan
North Slope to United States markets is in the national interest and will
enhance national energy security by providing access to the significant gas
reserves in Alaska needed to meet the anticipated demand for natural
gas.
(2) The Commission issued a conditional certificate of public
convenience and necessity for the Alaska Natural Gas Transportation System,
which remains in effect.
SEC. 703. PURPOSES.
The purposes of this subtitle are--
(1) to provide a statutory framework for the expedited approval,
construction, and initial operation of an Alaska natural gas transportation
project, as an alternative to the framework provided in the Alaska Natural
Gas Transportation Act of 1976 (15 U.S.C. 719-719o), which remains in
effect;
(2) to establish a process for providing access to such
transportation project in order to promote competition in the exploration,
development and production of Alaska natural gas;
(3) to clarify Federal authorities under the Alaska Natural Gas
Transportation Act; and
(4) to authorize Federal financial assistance to an Alaska natural
gas transportation project as provided in this subtitle.
SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY.
(a) AUTHORITY OF THE COMMISSION- Notwithstanding the provisions of the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719-719o), the
Commission may, pursuant to section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)), consider and act on an application for the issuance of a certificate
of public convenience and necessity authorizing the construction and operation
of an Alaska natural gas transportation project other than the Alaska Natural
Gas Transportation System.
(b) ISSUANCE OF CERTIFICATE- (1) The Commission shall issue a
certificate of public convenience and necessity authorizing the construction
and operation of an Alaska natural gas transportation project under this
section if the applicant has satisfied the requirements of section 7(e) of the
Natural Gas Act (15 U.S.C. 717f(e)).
(2) In considering an application under this section, the Commission
shall presume that--
(A) a public need exists to construct and operate the proposed
Alaska natural gas transportation project; and
(B) sufficient downstream capacity will exist to transport the
Alaska natural gas moving through such project to markets in the contiguous
United States.
(c) EXPEDITED APPROVAL PROCESS- The Commission shall issue a final
order granting or denying any application for a certificate of public
convenience and necessity under section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)) and this section not more than 60 days after the issuance of the
final environmental impact statement for that project pursuant to section
705.
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE- No license, permit, lease,
right-of-way, authorization or other approval required under Federal law for
the construction of any pipeline to transport natural gas from lands within
the Prudhoe Bay oil and gas lease area may be granted for any pipeline that
follows a route that traverses--
(1) the submerged lands (as defined by the Submerged Lands Act)
beneath, or the adjacent shoreline of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 degrees North
latitude.
(e) OPEN SEASON- Except where an expansion is ordered pursuant to
section 706, initial or expansion capacity on any Alaska natural gas
transportation project shall be allocated in accordance with procedures to be
established by the Commission in regulations governing the conduct of open
seasons for such project. Such procedures shall include the criteria for and
timing of any open seasons, be consistent with the purposes set forth in
section 703(2) and, for any open season for capacity beyond the initial
capacity, provide the opportunity for the transportation of natural gas other
than from the Prudhoe Bay and Point Thompson units. The Commission shall issue
such regulations no later than 120 days after the enactment of this
subtitle.
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES- Applications for
additional or expanded pipeline facilities that may be required to transport
Alaska natural gas from Canada to markets in the contiguous United States may
be made pursuant to the Natural Gas Act. To the extent such pipeline
facilities include the expansion of any facility constructed pursuant to the
Alaska Natural Gas Transportation Act of 1976, the provisions of that Act
shall continue to apply.
(g) STUDY OF IN-STATE NEEDS- The holder of the certificate of public
convenience and necessity issued, modified, or amended by the Commission for
an Alaska natural gas transportation project shall demonstrate that it has
conducted a study of Alaska in-State needs, including tie-in points along the
Alaska natural gas transportation project for in-State access.
(h) ALASKA ROYALTY GAS- The Commission, upon the request of the State
of Alaska and after a hearing, may provide for reasonable access to the Alaska
natural gas transportation project for the State of Alaska or its designee for
the transportation of the State's royalty gas for local consumption needs
within the State: Provided, That the rates of existing shippers of
subscribed capacity on such project shall not be increased as a result of such
access.
(i) REGULATIONS- The Commission may issue regulations to carry out the
provisions of this section.
SEC. 705. ENVIRONMENTAL REVIEWS.
(a) COMPLIANCE WITH NEPA- The issuance of a certificate of public
convenience and necessity authorizing the construction and operation of any
Alaska natural gas transportation project under section 704 shall be treated
as a major Federal action significantly affecting the quality of the human
environment within the meaning of section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
(b) DESIGNATION OF LEAD AGENCY- The Commission shall be the lead
agency for purposes of complying with the National Environmental Policy Act of
1969, and shall be responsible for preparing the statement required by section
102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with respect to an Alaska natural
gas transportation project under section 704. The Commission shall prepare a
single environmental statement under this section, which shall consolidate the
environmental reviews of all Federal agencies considering any aspect of the
project.
(c) OTHER AGENCIES- All Federal agencies considering aspects of the
construction and operation of an Alaska natural gas transportation project
under section 704 shall cooperate with the Commission, and shall comply with
deadlines established by the Commission in the preparation of the statement
under this section. The statement prepared under this section shall be used by
all such agencies to satisfy their responsibilities under section 102(2)(C) of
the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) with
respect to such project.
(d) EXPEDITED PROCESS- The Commission shall issue a draft statement
under this section not later than 12 months after the Commission determines
the application to be complete and shall issue the final statement not later
than 6 months after the Commission issues the draft statement, unless the
Commission for good cause finds that additional time is needed.
SEC. 706. PIPELINE EXPANSION.
(a) AUTHORITY- With respect to any Alaska natural gas transportation
project, upon the request of one or more persons and after giving notice and
an opportunity for a hearing, the Commission may order the expansion of such
project if it determines that such expansion is required by the present and
future public convenience and necessity.
(b) REQUIREMENTS- Before ordering an expansion the Commission
shall--
(1) approve or establish rates for the expansion service that are
designed to ensure the recovery, on an incremental or rolled-in basis, of
the cost associated with the expansion (including a reasonable rate of
return on investment);
(2) ensure that the rates as established do not require existing
shippers on the Alaska natural gas transportation project to subsidize
expansion shippers;
(3) find that the proposed shipper will comply with, and the
proposed expansion and the expansion of service will be undertaken and
implemented based on, terms and conditions consistent with the
then-effective tariff of the Alaska natural gas transportation
project;
(4) find that the proposed facilities will not adversely affect the
financial or economic viability of the Alaska natural gas transportation
project;
(5) find that the proposed facilities will not adversely affect the
overall operations of the Alaska natural gas transportation
project;
(6) find that the proposed facilities will not diminish the contract
rights of existing shippers to previously subscribed certificated
capacity;
(7) ensure that all necessary environmental reviews have been
completed; and
(8) find that adequate downstream facilities exist or are expected
to exist to deliver incremental Alaska natural gas to market.
(c) REQUIREMENT FOR A FIRM TRANSPORTATION AGREEMENT- Any order of the
Commission issued pursuant to this section shall be null and void unless the
person or persons requesting the order executes a firm transportation
agreement with the Alaska natural gas transportation project within a
reasonable period of time as specified in such order.
(d) LIMITATION- Nothing in this section shall be construed to expand
or otherwise affect any authorities of the Commission with respect to any
natural gas pipeline located outside the State of Alaska.
(e) REGULATIONS- The Commission may issue regulations to carry out the
provisions of this section.
SEC. 707. FEDERAL COORDINATOR.
(a) ESTABLISHMENT- There is established as an independent
establishment in the executive branch, the Office of the Federal Coordinator
for Alaska Natural Gas Transportation Projects.
(b) THE FEDERAL COORDINATOR- The Office shall be headed by a Federal
Coordinator for Alaska Natural Gas Transportation Projects, who
shall--
(1) be appointed by the President, by and with the advice of the
Senate,
(2) hold office at the pleasure of the President, and
(3) be compensated at the rate prescribed for level III of the
Executive Schedule (5 U.S.C. 5314).
(c) DUTIES- The Federal Coordinator shall be responsible for--
(1) coordinating the expeditious discharge of all activities by
Federal agencies with respect to an Alaska natural gas transportation
project; and
(2) ensuring the compliance of Federal agencies with the provisions
of this subtitle.
(d) REVIEWS AND ACTIONS OF OTHER FEDERAL AGENCIES- (1) All reviews
conducted and actions taken by any Federal officer or agency relating to an
Alaska natural gas transportation project authorized under this section shall
be expedited, in a manner consistent with completion of the necessary reviews
and approvals by the deadlines set forth in this subtitle.
(2) No Federal officer or agency shall have the authority to include
terms and conditions that are permitted, but not required, by law on any
certificate, right-of-way, permit, lease or other authorization issued to an
Alaska natural gas transportation project if the Federal Coordinator
determines that the terms and conditions would prevent or impair in any
significant respect the expeditious construction and operation of the
project.
(3) Unless required by law, no Federal officer or agency shall add to,
amend, or abrogate any certificate, right-of-way, permit, lease or other
authorization issued to an Alaska natural gas transportation project if the
Federal Coordinator determines that such action would prevent or impair in any
significant respect the expeditious construction and operation of the
project.
(e) STATE COORDINATION- The Federal Coordinator shall enter into a
Joint Surveillance and Monitoring Agreement, approved by the President and the
Governor of Alaska, with the State of Alaska similar to that in effect during
construction of the Trans-Alaska Oil Pipeline to monitor the construction of
the Alaska natural gas transportation project. The Federal Government shall
have primary surveillance and monitoring responsibility where the Alaska
natural gas transportation project crosses Federal lands and private lands,
and the State government shall have primary surveillance and monitoring
responsibility where the Alaska natural gas transportation project crosses
State lands.
SEC. 708. JUDICIAL REVIEW.
(a) EXCLUSIVE JURISDICTION- The United States Court of Appeals for the
District of Columbia Circuit shall have exclusive jurisdiction to
determine--
(1) the validity of any final order or action (including a failure
to act) of any Federal agency or officer under this subtitle;
(2) the constitutionality of any provision of this subtitle, or any
decision made or action taken thereunder; or
(3) the adequacy of any environmental impact statement prepared
under the National Environmental Policy Act of 1969 with respect to any
action under this subtitle.
(b) DEADLINE FOR FILING CLAIM- Claims arising under this subtitle may
be brought not later than 60 days after the date of the decision or action
giving rise to the claim.
(c) EXPEDITED CONSIDERATION- The United States Court of Appeals for
the District of Columbia Circuit shall set any action brought under subsection
(a) of this section for expedited consideration, taking into account the
national interest as described in section 702 of this subtitle.
(d) AMENDMENT TO ANGTA- Section 10(c) of the Alaska Gas Transportation
Act of 1976 (15 U.S.C. 719h) is amended by adding the following
paragraph:
`(2) EXPEDITED CONSIDERATION- The United States Court of Appeals for
the District of Columbia Circuit shall set any action brought under
subsection (a) of this section for expedited consideration, taking into
account the national interest described in section 2 of this
Act.'.
SEC. 709. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL
GAS.
(a) LOCAL DISTRIBUTION- Any facility receiving natural gas from the
Alaska natural gas transportation project for delivery to consumers within the
State of Alaska shall be deemed to be a local distribution facility within the
meaning of section 1(b) of the Natural Gas Act (15 U.S.C. 717), and therefore
not subject to the jurisdiction of the Federal Energy Regulatory
Commission.
(b) ADDITIONAL PIPELINES- Nothing in this subtitle, except as provided
in subsection 704(d), shall preclude or affect a future gas pipeline that may
be constructed to deliver natural gas to Fairbanks, Anchorage,
Matanuska-Susitna Valley, or the Kenai peninsula or Valdez or any other site
in the State of Alaska for consumption within or distribution outside the
State of Alaska.
(c) RATE COORDINATION- Pursuant to the Natural Gas Act, the Commission
shall establish rates for the transportation of natural gas on the Alaska
natural gas transportation project. In exercising such authority, the
Commission, pursuant to Section 17(b) of the Natural Gas Act (15 U.S.C. 717p),
shall confer with the State of Alaska regarding rates (including rate
settlements) applicable to natural gas transported on and delivered from the
Alaska natural gas transportation project for use within the State of
Alaska.
SEC. 710. LOAN GUARANTEE.
(a) AUTHORITY- The Secretary of Energy may guarantee not more than 80
percent of the principal of any loan made to the holder of a certificate of
public convenience and necessity issued under section 704(b) of this Act or
section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719g) for the purpose of constructing an Alaska natural gas transportation
project.
(b) CONDITIONS- (1) The Secretary of Energy may not guarantee a loan
under this section unless the guarantee has filed an application for a
certificate of public convenience and necessity under section 704(b) of this
Act or for an amended certificate under section 9 of the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719g) with the Commission not later than
18 months after the date of enactment of this subtitle.
(2) A loan guaranteed under this section shall be made by a financial
institution subject to the examination of the Secretary.
(3) Loan requirements, including term, maximum size, collateral
requirements and other features shall be determined by the Secretary.
(c) LIMITATION ON AMOUNT- Commitments to guarantee loans may be made
by the Secretary of Energy only to the extent that the total loan principal,
any part of which is guaranteed, will not exceed $10,000,000,000.
(d) REGULATIONS- The Secretary of Energy may issue regulations to
carry out the provisions of this section.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary such sums as may be necessary to cover the cost
of loan guarantees, as defined by section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)).
SEC. 711. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.
(a) REQUIREMENT OF STUDY- If no application for the issuance of a
certificate or amended certificate of public convenience and necessity
authorizing the construction and operation of an Alaska natural gas
transportation project has been filed with the Commission within 18 months
after the date of enactment of this title, the Secretary of Energy shall
conduct a study of alternative approaches to the construction and operation of
the project.
(b) SCOPE OF STUDY- The study shall consider the feasibility of
establishing a Government corporation to construct an Alaska natural gas
transportation project, and alternative means of providing Federal financing
and ownership (including alternative combinations of Government and private
corporate ownership) of the project.
(c) CONSULTATION- In conducting the study, the Secretary of Energy
shall consult with the Secretary of the Treasury and the Secretary of the Army
(acting through the Commanding General of the Corps of Engineers).
(d) REPORT- If the Secretary of Energy is required to conduct a study
under subsection (a), he shall submit a report containing the results of the
study, his recommendations, and any proposals for legislation to implement his
recommendations to the Congress within 6 months after the expiration of the
Secretary of Energy's authority to guarantee a loan under section 710.
SEC. 712. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.
(a) SAVINGS CLAUSE- Nothing in this subtitle affects any decision,
certificate, permit, right-of-way, lease, or other authorization issued under
section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719g) or any Presidential findings or waivers issued in accordance with that
Act.
(b) CLARIFICATION OF AUTHORITY TO AMEND TERMS AND CONDITIONS TO MEET
CURRENT PROJECT REQUIREMENTS- Any Federal officer or agency responsible for
granting or issuing any certificate, permit, right-of-way, lease, or other
authorization under section 9 of the Alaska Natural Gas Transportation Act of
1976 (15 U.S.C. 719g) may add to, amend, or abrogate any term or condition
included in such certificate, permit, right-of-way, lease, or other
authorization to meet current project requirements (including the physical
design, facilities, and tariff specifications), so long as such action does
not compel a change in the basic nature and general route of the Alaska
Natural Gas Transportation System as designated and described in section 2 of
the President's Decision, or would otherwise prevent or impair in any
significant respect the expeditious construction and initial operation of such
transportation system.
(c) UPDATED ENVIRONMENTAL REVIEWS- The Secretary of Energy shall
require the sponsor of the Alaska Natural Gas Transportation System to submit
such updated environmental data, reports, permits, and impact analyses as the
Secretary determines are necessary to develop detailed terms, conditions, and
compliance plans required by section 5 of the President's Decision.
SEC. 713. DEFINITIONS.
For purposes of this subtitle:
(1) The term `Alaska natural gas' means natural gas derived from the
area of the State of Alaska lying north of 64 degrees North
latitude.
(2) The term `Alaska natural gas transportation project' means any
natural gas pipeline system that carries Alaska natural gas to the border
between Alaska and Canada (including related facilities subject to the
jurisdiction of the Commission) that is authorized under either--
(A) the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C.
719-719o); or
(B) section 704 of this subtitle.
(3) The term `Alaska Natural Gas Transportation System' means the
Alaska natural gas transportation project authorized under the Alaska
Natural Gas Transportation Act of 1976 and designated and described in
section 2 of the President's Decision.
(4) The term `Commission' means the Federal Energy Regulatory
Commission.
(5) The term `President's Decision' means the Decision and Report to
Congress on the Alaska Natural Gas Transportation system issued by the
President on September 22, 1977 pursuant to section 7 of the Alaska Natural
Gas Transportation Act of 1976 (15 U.S.C. 719c) and approved by Public Law
95-158.
SEC. 714. SENSE OF THE SENATE.
It is the sense of the Senate that an Alaska natural gas
transportation project will provide significant economic benefits to the
United States and Canada. In order to maximize those benefits, the Senate
urges the sponsors of the pipeline project to make every effort to use steel
that is manufactured or produced in North America and to negotiate a project
labor agreement to expedite construction of the pipeline.
SEC. 715. ALASKAN PIPELINE CONSTRUCTION TRAINING PROGRAM.
(a) Within six months after enactment of this Act, the Secretary of
Labor (in this section referred to as the `Secretary') shall submit a report
to the Committee on Energy and Natural Resources of the United States Senate
and the Committee on Resources of the United States House of Representatives
setting forth a program to train Alaska residents in the skills and crafts
required in the design, construction, and operation of an Alaska gas pipeline
system and that will enhance employment and contracting opportunities for
Alaskan residents. The report shall also describe any laws, rules, regulations
and policies which act as a deterrent to hiring Alaskan residents or
contracting with Alaskan residents to perform work on Alaska gas pipelines,
together with any recommendations for change. For purposes of this subsection,
Alaskan residents shall be defined as those individuals eligible to vote
within the State of Alaska on the date of enactment of this Act.
(b) Within 1 year of the date the report is transmitted to Congress,
the Secretary shall establish within the State of Alaska, at such locations as
are appropriate, one or more training centers for the express purpose of
training Alaskan residents in the skills and crafts necessary in the design,
construction and operation of gas pipelines in Alaska. Each such training
center shall also train Alaskan residents in the skills required to write,
offer, and monitor contracts in support of the design, construction, and
operation of Alaska gas pipelines.
(c) In implementing the report and program described in this
subsection, the Secretary shall consult with the Alaskan Governor.
(d) There are authorized to be appropriated to the Secretary such sums
as may be necessary, but not to exceed $20,000,000 for the purposes of this
subsection.
Subtitle B--Operating Pipelines
SEC. 721. ENVIRONMENTAL REVIEW AND PERMITTING OF NATURAL GAS PIPELINE
PROJECTS.
(a) INTERAGENCY REVIEW- The Chairman of the Council on Environmental
Quality, in coordination with the Federal Energy Regulatory Commission, shall
establish an interagency task force to develop an interagency memorandum of
understanding to expedite the environmental review and permitting of natural
gas pipeline projects.
(b) MEMBERSHIP OF INTERAGENCY TASK FORCE- The task force shall consist
of--
(1) the Chairman of the Council on Environmental Quality, who shall
serve as the Chairman of the interagency task force,
(2) the Chairman of the Federal Energy Regulatory
Commission,
(3) the Director of the Bureau of Land Management,
(4) the Director of the United States Fish and Wildlife
Service,
(5) the Commanding General, United States Army Corps of
Engineers,
(6) the Chief of the Forest Service,
(7) the Administrator of the Environmental Protection
Agency,
(8) the Chairman of the Advisory Council on Historic Preservation,
and
(9) the heads of such other agencies as the Chairman of the Council
on Environmental Quality and the Chairman of the Federal Energy Regulatory
Commission deem appropriate.
(c) MEMORANDUM OF UNDERSTANDING- The agencies represented by the
members of the interagency task force shall enter into the memorandum of
understanding not later than 1 year after the date of the enactment of this
section.
Subtitle C--Pipeline Safety
PART I--SHORT TITLE; AMENDMENT OF TITLE 49
SEC. 741. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES
CODE.
(a) SHORT TITLE- This subtitle may be cited as the `Pipeline Safety
Improvement Act of 2002'.
(b) Amendment of Title 49, United States Code- Except as otherwise
expressly provided, whenever in this subtitle an amendment or repeal is
expressed in terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to a section or other
provision of title 49, United States Code.
PART II--PIPELINE SAFETY IMPROVEMENT ACT OF 2002
SEC. 761. IMPLEMENTATION OF INSPECTOR GENERAL RECOMMENDATIONS.
(a) IN GENERAL- Except as otherwise required by this subtitle, the
Secretary shall implement the safety improvement recommendations provided for
in the Department of Transportation Inspector General's Report
(RT-2000-069).
(b) REPORTS BY THE SECRETARY- Not later than 90 days after the date of
enactment of this Act, and every 90 days thereafter until each of the
recommendations referred to in subsection (a) has been implemented, the
Secretary shall transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report on the specific
actions taken to implement such recommendations.
(c) REPORTS BY THE INSPECTOR GENERAL- The Inspector General shall
periodically transmit to the committees referred to in subsection (b) a report
assessing the Secretary's progress in implementing the recommendations
referred to in subsection (a) and identifying options for the Secretary to
consider in accelerating recommendation implementation.
SEC. 762. NTSB SAFETY RECOMMENDATIONS.
(a) IN GENERAL- The Secretary of Transportation, the Administrator of
Research and Special Program Administration, and the Director of the Office of
Pipeline Safety shall fully comply with section 1135 of title 49, United
States Code, to ensure timely responsiveness to National Transportation Safety
Board recommendations about pipeline safety.
(b) PUBLIC AVAILABILITY- The Secretary, Administrator, or Director,
respectively, shall make a copy of each recommendation on pipeline safety and
response, as described in sections 1135 (a) and (b) of title 49, United States
Code, available to the public at reasonable cost.
(c) REPORTS TO CONGRESS- The Secretary, Administrator, or Director,
respectively, shall submit to the Congress by January 1 of each year a report
containing each recommendation on pipeline safety made by the Board during the
prior year and a copy of the response to each such recommendation.
SEC. 763. QUALIFICATIONS OF PIPELINE PERSONNEL.
(a) QUALIFICATION PLAN- Each pipeline operator shall make available to
the Secretary of Transportation, or, in the case of an intrastate pipeline
facility operator, the appropriate State regulatory agency, a plan that is
designed to enhance the qualifications of pipeline personnel and to reduce the
likelihood of accidents and injuries. The plan shall be made available not
more than 6 months after the date of enactment of this Act, and the operator
shall revise or update the plan as appropriate.
(b) REQUIREMENTS- The enhanced qualification plan shall include, at a
minimum, criteria to demonstrate the ability of an individual to safely and
properly perform tasks identified under section 60102 of title 49, United
States Code. The plan shall also provide for training and periodic
reexamination of pipeline personnel qualifications and provide for
requalification as appropriate. The Secretary, or, in the case of an
intrastate pipeline facility operator, the appropriate State regulatory
agency, may review and certify the plans to determine if they are sufficient
to provide a safe operating environment and shall periodically review the
plans to ensure the continuation of a safe operation. The Secretary may
establish minimum standards for pipeline personnel training and evaluation,
which may include written examination, oral examination, work performance
history review, observation during performance on the job, on the job
training, simulations, or other forms of assessment.
(1) IN GENERAL- The Secretary shall submit a report to the Congress
evaluating the effectiveness of operator qualification and training efforts,
including--
(A) actions taken by inspectors;
(B) recommendations made by inspectors for changes to operator
qualification and training programs; and
(C) industry and employee organization responses to those actions
and recommendations.
(2) CRITERIA- The Secretary may establish criteria for use in
evaluating and reporting on operator qualification and training for purposes
of this subsection.
(3) DUE DATE- The Secretary shall submit the report required by
paragraph (1) to the Congress 3 years after the date of enactment of this
Act.
SEC. 764. PIPELINE INTEGRITY INSPECTION PROGRAM.
Section 60109 is amended by adding at the end the following:
`(c) Integrity Management-
`(1) GENERAL REQUIREMENT- The Secretary shall promulgate regulations
requiring operators of hazardous liquid pipelines and natural gas
transmission pipelines to evaluate the risks to the operator's pipeline
facilities in areas identified pursuant to subsection (a)(1), and to adopt
and implement a program for integrity management that reduces the risk of an
incident in those areas. The regulations shall be issued no later than 1
year after the Secretary has issued standards pursuant to subsections (a)
and (b) of this section or by December 31, 2003, whichever is
sooner.
`(2) STANDARDS FOR PROGRAM- In promulgating regulations under this
section, the Secretary shall require an operator's integrity management plan
to be based on risk analysis and each plan shall include, at a
minimum--
`(A) periodic assessment of the integrity of the pipeline through
methods including internal inspection, pressure testing, direct
assessment, or other effective methods. The assessment period shall be no
less than every 5 years unless the Department of Transportation Inspector
General, after consultation with the Secretary determines there is not a
sufficient capability or it is deemed unnecessary because of more
technically appropriate monitoring or creates undue interruption of
necessary supply to fulfill the requirements under this
paragraph;
`(B) clearly defined criteria for evaluating the results of the
periodic assessment methods carried out under subparagraph (A) and
procedures to ensure identified problems are corrected in a timely manner;
and
`(C) measures, as appropriate, that prevent and mitigate
unintended releases, such as leak detection, integrity evaluation,
restrictive flow devices, or other measures.
`(3) CRITERIA FOR PROGRAM STANDARDS- In deciding how frequently the
integrity assessment methods carried out under paragraph (2)(A) must be
conducted, an operator shall take into account the potential for new defects
developing or previously identified structural defects caused by
construction or installation, the operational characteristics of the
pipeline, and leak history. In addition, the Secretary may establish a
minimum testing requirement for operators of pipelines to conduct internal
inspections.
`(4) STATE ROLE- A State authority that has an agreement in effect
with the Secretary under section 60106 is authorized to review and assess an
operator's risk analyses and integrity management plans required under this
section for interstate pipelines located in that State. The reviewing State
authority shall provide the Secretary with a written assessment of the
plans, make recommendations, as appropriate, to address safety concerns not
adequately addressed in the operator's plans, and submit documentation
explaining the State-proposed plan revisions. The Secretary shall carefully
consider the State's proposals and work in consultation with the States and
operators to address safety concerns.
`(5) MONITORING IMPLEMENTATION- The Secretary of Transportation
shall review the risk analysis and program for integrity management required
under this section and provide for continued monitoring of such plans. Not
later than 2 years after the implementation of integrity management plans
under this section, the Secretary shall complete an assessment and
evaluation of the effects on safety and the environment of extending all of
the requirements mandated by the regulations described in paragraph (1) to
additional areas. The Secretary shall submit the assessment and evaluation
to Congress along with any recommendations to improve and expand the
utilization of integrity management plans.
`(6) OPPORTUNITY FOR LOCAL INPUT ON INTEGRITY MANAGEMENT- Within 18
months after the date of enactment of the Pipeline Safety Improvement Act of
2002, the Secretary shall, by regulation, establish a process for raising
and addressing local safety concerns about pipeline integrity and the
operator's pipeline integrity plan. The process shall include--
`(A) a requirement that an operator of a hazardous liquid or
natural gas transmission pipeline facility provide information about the
risk analysis and integrity management plan required under this section to
local officials in a State in which the facility is located;
`(B) a description of the local officials required to be informed,
the information that is to be provided to them and the manner, which may
include traditional or electronic means, in which it is
provided;
`(C) the means for receiving input from the local officials that
may include a public forum sponsored by the Secretary or by the State, or
the submission of written comments through traditional or electronic
means;
`(D) the extent to which an operator of a pipeline facility must
participate in a public forum sponsored by the Secretary or in another
means for receiving input from the local officials or in the evaluation of
that input; and
`(E) the manner in which the Secretary will notify the local
officials about how their concerns are being addressed.'.
SEC. 765. ENFORCEMENT.
(a) IN GENERAL- Section 60112 is amended--
(1) by striking subsection (a) and inserting the
following:
`(a) GENERAL AUTHORITY- After notice and an opportunity for a hearing,
the Secretary of Transportation may decide a pipeline facility is hazardous if
the Secretary decides that--
`(1) operation of the facility is or would be hazardous to life,
property, or the environment; or
`(2) the facility is, or would be, constructed or operated, or a
component of the facility is, or would be, constructed or operated with
equipment, material, or a technique that the Secretary decides is hazardous
to life, property, or the environment.'; and
(2) by striking `is hazardous,' in subsection (d) and inserting `is,
or would be, hazardous,'.
SEC. 766. PUBLIC EDUCATION, EMERGENCY PREPAREDNESS, AND COMMUNITY
RIGHT-TO-KNOW.
(a) Section 60116 is amended to read as follows:
`Sec. 60116. Public education, emergency preparedness, and community
right-to-know
`(a) PUBLIC EDUCATION PROGRAMS- (1) Each owner or operator of a gas or
hazardous liquid pipeline facility shall carry out a continuing program to
educate the public on the use of a one-call notification system prior to
excavation and other damage prevention activities, the possible hazards
associated with unintended releases from the pipeline facility, the physical
indications that such a release may have occurred, what steps should be taken
for public safety in the event of a pipeline release, and how to report such
an event.
`(2) Within 12 months after the date of enactment of the Pipeline
Safety Improvement Act of 2002, each owner or operator of a gas or hazardous
liquid pipeline facility shall review its existing public education program
for effectiveness and modify the program as necessary. The completed program
shall include activities to advise affected municipalities, school districts,
businesses, and residents of pipeline facility locations. The completed
program shall be submitted to the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency and shall be
periodically reviewed by the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency.
`(3) The Secretary may issue standards prescribing the elements of an
effective public education program. The Secretary may also develop material
for use in the program.
`(b) Emergency Preparedness-
`(1) OPERATOR LIAISON- Within 12 months after the date of enactment
of the Pipeline Safety Improvement Act of 2002, an operator of a gas
transmission or hazardous liquid pipeline facility shall initiate and
maintain liaison with the State emergency response commissions, and local
emergency planning committees in the areas of pipeline right-of-way,
established under section 301 of the Emergency Planning and Community
Right-To-Know Act of 1986 (42 U.S.C. 11001) in each State in which it
operates.
`(2) INFORMATION- An operator shall, upon request, make available to
the State emergency response commissions and local emergency planning
committees, and shall make available to the Office of Pipeline Safety in a
standardized form for the purpose of providing the information to the
public, the information described in section 60102(d), the operator's
program for integrity management, and information about implementation of
that program. The information about the facility shall also include, at a
minimum--
`(A) the business name, address, telephone number of the operator,
including a 24-hour emergency contact number;
`(B) a description of the facility, including pipe diameter, the
product or products carried, and the operating pressure;
`(C) with respect to transmission pipeline facilities, maps
showing the location of the facility and, when available, any high
consequence areas which the pipeline facility traverses or adjoins and
abuts;
`(D) a summary description of the integrity measures the operator
uses to assure safety and protection for the environment;
and
`(E) a point of contact to respond to questions from emergency
response representative.
`(3) SMALLER COMMUNITIES- In a community without a local emergency
planning committee, the operator shall maintain liaison with the local fire,
police, and other emergency response agencies.
`(4) PUBLIC ACCESS- The Secretary shall prescribe requirements for
public access, as appropriate, to this information, including a requirement
that the information be made available to the public by widely accessible
computerized database.
`(c) COMMUNITY RIGHT-TO-KNOW- Not later than 12 months after the date
of enactment of the Pipeline Safety Improvement Act of 2002, and annually
thereafter, the owner or operator of each gas transmission or hazardous liquid
pipeline facility shall provide to the governing body of each municipality in
which the pipeline facility is located, a map identifying the location of such
facility. The map may be provided in electronic form. The Secretary may
provide technical assistance to the pipeline industry on developing public
safety and public education program content and best practices for program
delivery, and on evaluating the effectiveness of the programs. The Secretary
may also provide technical assistance to State and local officials in applying
practices developed in these programs to their activities to promote pipeline
safety.
`(d) PUBLIC AVAILABILITY OF REPORTS- The Secretary shall--
`(1) make available to the public--
`(A) a safety-related condition report filed by an operator under
section 60102(h);
`(B) a report of a pipeline incident filed by an
operator;
`(C) the results of any inspection by the Office of Pipeline
Safety or a State regulatory official; and
`(D) a description of any corrective action taken in response to a
safety-related condition reported under subparagraph (A), (B), or (C);
and
`(2) prescribe requirements for public access, as appropriate, to
integrity management program information prepared under this chapter,
including requirements that will ensure data accessibility to the greatest
extent feasible.'.
(b) SAFETY CONDITION REPORTS- Section 60102(h)(2) is amended by
striking `authorities.' and inserting `officials, including the local
emergency responders.'.
(c) CONFORMING AMENDMENT- The chapter analysis for chapter 601 is
amended by striking the item relating to section 60116 and inserting the
following:
`60116. Public education, emergency preparedness, community
right-to-know.'.
SEC. 767. PENALTIES.
(a) CIVIL PENALTIES- Section 60122 is amended--
(1) by striking `$25,000' in subsection (a)(1) and inserting
`$500,000';
(2) by striking `$500,000' in subsection (a)(1) and inserting
`$1,000,000';
(3) by adding at the end of subsection (a)(1) the following: `The
preceding sentence does not apply to judicial enforcement action under
section 60120 or 60121.'; and
(4) by striking subsection (b) and inserting the
following:
`(b) PENALTY CONSIDERATIONS- In determining the amount of a civil
penalty under this section--
`(1) the Secretary shall consider--
`(A) the nature, circumstances, and gravity of the violation,
including adverse impact on the environment;
`(B) with respect to the violator, the degree of culpability, any
history of prior violations, the ability to pay, any effect on ability to
continue doing business; and
`(C) good faith in attempting to comply; and
`(2) the Secretary may consider--
`(A) the economic benefit gained from the violation without any
discount because of subsequent damages; and
`(B) other matters that justice requires.'.
(b) EXCAVATOR DAMAGE- Section 60123(d) is amended--
(1) by striking `knowingly and willfully';
(2) by inserting `knowingly and willfully' before `engages' in
paragraph (1); and
(3) striking paragraph (2)(B) and inserting the
following:
`(B) a pipeline facility, is aware of damage, and does not report
the damage promptly to the operator of the pipeline facility and to other
appropriate authorities; or'.
(c) CIVIL ACTIONS- Section 60120(a)(1) is amended to read as
follows:
`(1) On the request of the Secretary of Transportation, the Attorney
General may bring a civil action in an appropriate district court of the
United States to enforce this chapter, including section 60112 of this
chapter, or a regulation prescribed or order issued under this chapter. The
court may award appropriate relief, including a temporary or permanent
injunction, punitive damages, and assessment of civil penalties considering
the same factors as prescribed for the Secretary in an administrative case
under section 60122.'.
SEC. 768. STATE OVERSIGHT ROLE.
(a) STATE AGREEMENTS WITH CERTIFICATION- Section 60106 is
amended--
(1) by striking `GENERAL AUTHORITY- ' in subsection (a) and
inserting `Agreements Without Certification- ';
(2) by redesignating subsections (b), (c), and (d) as subsections
(c), (d), and (e); and
(3) by inserting after subsection (a) the following:
`(b) Agreements With Certification-
`(1) IN GENERAL- If the Secretary accepts a certification under
section 60105 of this title and makes the determination required under this
subsection, the Secretary may make an agreement with a State authority
authorizing it to participate in the oversight of interstate pipeline
transportation. Each such agreement shall include a plan for the State
authority to participate in special investigations involving incidents or
new construction and allow the State authority to participate in other
activities overseeing interstate pipeline transportation or to assume
additional inspection or investigatory duties. Nothing in this section
modifies section 60104(c) or authorizes the Secretary to delegate the
enforcement of safety standards prescribed under this chapter to a State
authority.
`(2) DETERMINATIONS REQUIRED- The Secretary may not enter into an
agreement under this subsection, unless the Secretary determines
that--
`(A) the agreement allowing participation of the State authority
is consistent with the Secretary's program for inspection and consistent
with the safety policies and provisions provided under this
chapter;
`(B) the interstate participation agreement would not adversely
affect the oversight responsibilities of intrastate pipeline
transportation by the State authority;
`(C) the State is carrying out a program demonstrated to promote
preparedness and risk prevention activities that enable communities to
live safely with pipelines;
`(D) the State meets the minimum standards for State one-call
notification set forth in chapter 61; and
`(E) the actions planned under the agreement would not impede
interstate commerce or jeopardize public safety.
`(3) EXISTING AGREEMENTS- If requested by the State authority, the
Secretary shall authorize a State authority which had an interstate
agreement in effect after January 1999, to oversee interstate pipeline
transportation pursuant to the terms of that agreement until the Secretary
determines that the State meets the requirements of paragraph (2) and
executes a new agreement, or until December 31, 2003, whichever is sooner.
Nothing in this paragraph shall prevent the Secretary, after affording the
State notice, hearing, and an opportunity to correct any alleged
deficiencies, from terminating an agreement that was in effect before
enactment of the Pipeline Safety Improvement Act of 2002 if--
`(A) the State authority fails to comply with the terms of the
agreement;
`(B) implementation of the agreement has resulted in a gap in the
oversight responsibilities of intrastate pipeline transportation by the
State authority; or
`(C) continued participation by the State authority in the
oversight of interstate pipeline transportation has had an adverse impact
on pipeline safety.'.
(b) ENDING AGREEMENTS- Subsection (e) of section 60106, as
redesignated by subsection (a), is amended to read as follows:
`(1) PERMISSIVE TERMINATION- The Secretary may end an agreement
under this section when the Secretary finds that the State authority has not
complied with any provision of the agreement.
`(2) MANDATORY TERMINATION OF AGREEMENT- The Secretary shall end an
agreement for the oversight of interstate pipeline transportation if the
Secretary finds that--
`(A) implementation of such agreement has resulted in a gap in the
oversight responsibilities of intrastate pipeline transportation by the
State authority;
`(B) the State actions under the agreement have failed to meet the
requirements under subsection (b); or
`(C) continued participation by the State authority in the
oversight of interstate pipeline transportation would not promote pipeline
safety.
`(3) PROCEDURAL REQUIREMENTS- The Secretary shall give the notice
and an opportunity for a hearing to a State authority before ending an
agreement under this section. The Secretary may provide a State an
opportunity to correct any deficiencies before ending an agreement. The
finding and decision to end the agreement shall be published in the Federal
Register and may not become effective for at least 15 days after the date of
publication unless the Secretary finds that continuation of an agreement
poses an imminent hazard.'.
SEC. 769. IMPROVED DATA AND DATA AVAILABILITY.
(a) IN GENERAL- Within 12 months after the date of enactment of this
Act, the Secretary shall develop and implement a comprehensive plan for the
collection and use of gas and hazardous liquid pipeline data to revise the
causal categories on the incident report forms to eliminate overlapping and
confusing categories and include subcategories. The plan shall include
components to provide the capability to perform sound incident trend analysis
and evaluations of pipeline operator performance using normalized accident
data.
(b) Report of Releases Exceeding 5 Gallons- Section 60117(b) is
amended--
(1) by inserting `(1)' before `To';
(2) redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B);
(3) inserting before the last sentence the following:
`(2) A person owning or operating a hazardous liquid pipeline facility
shall report to the Secretary each release to the environment greater than 5
gallons of the hazardous liquid or carbon dioxide transported. This section
applies to releases from pipeline facilities regulated under this chapter. A
report must include the location of the release, fatalities and personal
injuries, type of product, amount of product release, cause or causes of the
release, extent of damage to property and the environment, and the response
undertaken to clean up the release.
`(3) During the course of an incident investigation, a person owning
or operating a pipeline facility shall make records, reports, and information
required under subsection (a) of this section or other reasonably described
records, reports, and information relevant to the incident investigation,
available to the Secretary within the time limits prescribed in a written
request.'; and
(4) indenting the first word of the last sentence and inserting
`(4)' before `The Secretary' in that sentence.
(c) PENALTY AUTHORITIES- (1) Section 60122(a) is amended by striking
`60114(c)' and inserting `60117(b)(3)'.
(2) Section 60123(a) is amended by striking `60114(c),' and inserting
`60117(b)(3),'.
(d) ESTABLISHMENT OF NATIONAL DEPOSITORY- Section 60117 is amended by
adding at the end the following:
`(l) NATIONAL DEPOSITORY- The Secretary shall establish a national
depository of data on events and conditions, including spill histories and
corrective actions for specific incidents, that can be used to evaluate the
risk of, and to prevent, pipeline failures and releases. The Secretary shall
administer the program through the Bureau of Transportation Statistics, in
cooperation with the Research and Special Programs Administration, and shall
make such information available for use by State and local planning and
emergency response authorities and the public.'.
SEC. 770. RESEARCH AND DEVELOPMENT.
(a) Innovative Technology Development-
(1) IN GENERAL- As part of the Department of Transportation's
research and development program, the Secretary of Transportation shall
direct research attention to the development of alternative
technologies--
(A) to expand the capabilities of internal inspection devices to
identify and accurately measure defects and anomalies;
(B) to inspect pipelines that cannot accommodate internal
inspection devices available on the date of enactment;
(C) to develop innovative techniques measuring the structural
integrity of pipelines;
(D) to improve the capability, reliability, and practicality of
external leak detection devices; and
(E) to develop and improve alternative technologies to identify
and monitor outside force damage to pipelines.
(2) COOPERATIVE- The Secretary may participate in additional
technological development through cooperative agreements with trade
associations, academic institutions, or other qualified
organizations.
(b) Pipeline Safety and Reliability Research and Development-
(1) IN GENERAL- The Secretary of Transportation, in coordination
with the Secretary of Energy, shall develop and implement an accelerated
cooperative program of research and development to ensure the integrity of
natural gas and hazardous liquid pipelines. This research and development
program--
(A) shall include materials inspection techniques, risk assessment
methodology, and information systems surety; and
(B) shall complement, and not replace, the research program of the
Department of Energy addressing natural gas pipeline issues existing on
the date of enactment of this Act.
(2) PURPOSE- The purpose of the cooperative research program shall
be to promote pipeline safety research and development to--
(A) ensure long-term safety, reliability and service life for
existing pipelines;
(B) expand capabilities of internal inspection devices to identify
and accurately measure defects and anomalies;
(C) develop inspection techniques for pipelines that cannot
accommodate the internal inspection devices available on the date of
enactment;
(D) develop innovative techniques to measure the structural
integrity of pipelines to prevent pipeline failures;
(E) develop improved materials and coatings for use in
pipelines;
(F) improve the capability, reliability, and practicality of
external leak detection devices;
(G) identify underground environments that might lead to shortened
service life;
(H) enhance safety in pipeline siting and land use;
(I) minimize the environmental impact of pipelines;
(J) demonstrate technologies that improve pipeline safety,
reliability, and integrity;
(K) provide risk assessment tools for optimizing risk mitigation
strategies; and
(L) provide highly secure information systems for controlling the
operation of pipelines.
(3) AREAS- In carrying out this subsection, the Secretary of
Transportation, in coordination with the Secretary of Energy, shall consider
research and development on natural gas, crude oil and petroleum product
pipelines for--
(A) early crack, defect, and damage detection, including real-time
damage monitoring;
(B) automated internal pipeline inspection sensor
systems;
(C) land use guidance and set back management along pipeline
rights-of-way for communities;
(D) internal corrosion control;
(E) corrosion-resistant coatings;
(F) improved cathodic protection;
(G) inspection techniques where internal inspection is not
feasible, including measurement of structural integrity;
(H) external leak detection, including portable real-time video
imaging technology, and the advancement of computerized control center
leak detection systems utilizing real-time remote field data
input;
(I) longer life, high strength, non-corrosive pipeline
materials;
(J) assessing the remaining strength of existing
pipes;
(K) risk and reliability analysis models, to be used to identify
safety improvements that could be realized in the near term resulting from
analysis of data obtained from a pipeline performance tracking
initiative;
(L) identification, monitoring, and prevention of outside force
damage, including satellite surveillance; and
(M) any other areas necessary to ensuring the public safety and
protecting the environment.
(A) IN GENERAL- To coordinate and implement the research and
development programs and activities authorized under this
subsection--
(i) the Secretary of Transportation shall designate, as the
point of contact for the Department of Transportation, an officer of the
Department of Transportation who has been appointed by the President and
confirmed by the Senate; and
(ii) the Secretary of Energy shall designate, as the point of
contact for the Department of Energy, an officer of the Department of
Energy who has been appointed by the President and confirmed by the
Senate.
(i) The point of contact for the Department of Transportation
shall have the primary responsibility for coordinating and overseeing
the implementation of the research, development, and demonstration
program plan under paragraphs (5) and (6).
(ii) The points of contact shall jointly assist in arranging
cooperative agreements for research, development and demonstration
involving their respective Departments, national laboratories,
universities, and industry research organizations.
(5) RESEARCH AND DEVELOPMENT PROGRAM PLAN- Within 240 days after the
date of enactment of this Act, the Secretary of Transportation, in
coordination with the Secretary of Energy and the Pipeline Integrity
Technical Advisory Committee, shall prepare and submit to the Congress a
5-year program plan to guide activities under this subsection. In preparing
the program plan, the Secretary shall consult with appropriate
representatives of the natural gas, crude oil, and petroleum product
pipeline industries to select and prioritize appropriate project proposals.
The Secretary may also seek the advice of utilities, manufacturers,
institutions of higher learning, Federal agencies, the pipeline research
institutions, national laboratories, State pipeline safety officials,
environmental organizations, pipeline safety advocates, and professional and
technical societies.
(6) IMPLEMENTATION- The Secretary of Transportation shall have
primary responsibility for ensuring the 5-year plan provided for in
paragraph (5) is implemented as intended. In carrying out the research,
development, and demonstration activities under this paragraph, the
Secretary of Transportation and the Secretary of Energy may use, to the
extent authorized under applicable provisions of law, contracts, cooperative
agreements, cooperative research and development agreements under the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.),
grants, joint ventures, other transactions, and any other form of agreement
available to the Secretary consistent with the recommendations of the
Advisory Committee.
(7) REPORTS TO CONGRESS- The Secretary of Transportation shall
report to the Congress annually as to the status and results to date of the
implementation of the research and development program plan. The report
shall include the activities of the Departments of Transportation and
Energy, the national laboratories, universities, and any other research
organizations, including industry research organizations.
SEC. 771. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.
(a) ESTABLISHMENT- The Secretary of Transportation shall enter into
appropriate arrangements with the National Academy of Sciences to establish
and manage the Pipeline Integrity Technical Advisory Committee for the purpose
of advising the Secretary of Transportation and the Secretary of Energy on the
development and implementation of the 5-year research, development, and
demonstration program plan under section 770(b)(5). The Advisory Committee
shall have an ongoing role in evaluating the progress and results of the
research, development, and demonstration carried out under that
section.
(b) MEMBERSHIP- The National Academy of Sciences shall appoint the
members of the Pipeline Integrity Technical Advisory Committee after
consultation with the Secretary of Transportation and the Secretary of Energy.
Members appointed to the Advisory Committee should have the necessary
qualifications to provide technical contributions to the purposes of the
Advisory Committee.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) GAS AND HAZARDOUS LIQUIDS- Section 60125(a) is amended to read as
follows:
`(a) GAS AND HAZARDOUS LIQUID- To carry out this chapter and other
pipeline-related damage prevention activities of this title (except for
section 60107), there are authorized to be appropriated to the Department of
Transportation--$30,000,000 for each of the fiscal years 2003, 2004, and 2005
of which $23,000,000 is to be derived from user fees for fiscal years 2003,
2004, and 2005 collected under section 60301 of this title.'.
(b) GRANTS TO STATES- Section 60125(c) is amended to read as
follows:
`(c) STATE GRANTS- Not more than the following amounts may be
appropriated to the Secretary to carry out section 60107--$20,000,000 for the
fiscal years 2003, 2004, and 2005 of which $18,000,000 is to be derived from
user fees for fiscal years 2003, 2004, and 2005 collected under section 60301
of this title.'.
(c) OIL SPILLS- Section 60125 is amended by redesignating subsections
(d), (e), and (f) as subsections (e), (f), (g) and inserting after subsection
(c) the following:
`(d) OIL SPILL LIABILITY TRUST FUND- Of the amounts available in the
Oil Spill Liability Trust Fund, $8,000,000 shall be transferred to the
Secretary of Transportation, as provided in appropriation Acts, to carry out
programs authorized in this title for each of fiscal years 2003, 2004, and
2005.'.
(d) PIPELINE INTEGRITY PROGRAM- (1) There are authorized to be
appropriated to the Secretary of Transportation for carrying out sections
770(b) and 771 of this subtitle $3,000,000, to be derived from user fees under
section 60301 of title 49, United States Code, for each of the fiscal years
2003 through 2007.
(2) Of the amounts available in the Oil Spill Liability Trust Fund
established by section 9509 of the Internal Revenue Code of 1986 (26 U.S.C.
9509), $3,000,000 shall be transferred to the Secretary of Transportation, as
provided in appropriation Acts, to carry out programs for detection,
prevention and mitigation of oil spills under sections 770(b) and 771 of this
subtitle for each of the fiscal years 2003 through 2007.
(3) There are authorized to be appropriated to the Secretary of Energy
for carrying out sections 770(b) and 771 of this subtitle such sums as may be
necessary for each of the fiscal years 2003 through 2007.
SEC. 773. OPERATOR ASSISTANCE IN INVESTIGATIONS.
(a) IN GENERAL- If the Department of Transportation or the National
Transportation Safety Board investigate an accident, the operator involved
shall make available to the representative of the Department or the Board all
records and information that in any way pertain to the accident (including
integrity management plans and test results), and shall afford all reasonable
assistance in the investigation of the accident.
(b) CORRECTIVE ACTION ORDERS- Section 60112(d) is amended--
(1) by inserting `(1)' after `CORRECTIVE ACTION ORDERS- ';
and
(2) by adding at the end the following:
`(2) If, in the case of a corrective action order issued following an
accident, the Secretary determines that the actions of an employee carrying
out an activity regulated under this chapter, including duties under section
60102(a), may have contributed substantially to the cause of the accident, the
Secretary shall direct the operator to relieve the employee from performing
those activities, reassign the employee, or place the employee on leave until
the earlier of the date on which--
`(A) the Secretary determines, after notice and an opportunity for a
hearing, that the employee's performance of duty in carrying out the
activity did not contribute substantially to the cause of the accident;
or
`(B) the Secretary determines the employee has been re-qualified or
re-trained as provided for in section 763 of the Pipeline Safety Improvement
Act of 2002 and can safely perform those activities.
`(3) Action taken by an operator under paragraph (2) shall be in
accordance with the terms and conditions of any applicable collective
bargaining agreement to the extent it is not inconsistent with the
requirements of this section.'.
SEC. 774. PROTECTION OF EMPLOYEES PROVIDING PIPELINE SAFETY
INFORMATION.
(a) IN GENERAL- Chapter 601 is amended by adding at the end the
following:
`Sec. 60129. Protection of employees providing pipeline safety
information
`(a) DISCRIMINATION AGAINST PIPELINE EMPLOYEES- No pipeline operator
or contractor or subcontractor of a pipeline may discharge an employee or
otherwise discriminate against an employee with respect to compensation,
terms, conditions, or privileges of employment because the employee (or any
person acting pursuant to a request of the employee)--
`(1) provided, caused to be provided, or is about to provide (with
any knowledge of the employer) or cause to be provided to the employer or
Federal Government information relating to any violation or alleged
violation of any order, regulation, or standard of the Research and Special
Programs Administration or any other provision of Federal law relating to
pipeline safety under this chapter or any other law of the United
States;
`(2) has filed, caused to be filed, or is about to file (with any
knowledge of the employer) or cause to be filed a proceeding relating to any
violation or alleged violation of any order, regulation, or standard of the
Administration or any other provision of Federal law relating to pipeline
safety under this chapter or any other law of the United States;
`(3) testified or is about to testify in such a proceeding;
or
`(4) assisted or participated or is about to assist or participate
in such a proceeding.
`(b) DEPARTMENT OF LABOR COMPLAINT PROCEDURE-
`(1) FILING AND NOTIFICATION- A person who believes that he or she
has been discharged or otherwise discriminated against by any person in
violation of subsection (a) may, not later than 90 days after the date on
which such violation occurs, file (or have any person file on his or her
behalf) a complaint with the Secretary of Labor alleging such discharge or
discrimination. Upon receipt of such a complaint, the Secretary of Labor
shall notify, in writing, the person named in the complaint and the
Administrator of the Research and Special Programs Administration of the
filing of the complaint, of the allegations contained in the complaint, of
the substance of evidence supporting the complaint, and of the opportunities
that will be afforded to such person under paragraph (2).
`(2) INVESTIGATION; PRELIMINARY ORDER-
`(A) IN GENERAL- Not later than 60 days after the date of receipt
of a complaint filed under paragraph (1) and after affording the person
named in the complaint an opportunity to submit to the Secretary of Labor
a written response to the complaint and an opportunity to meet with a
representative of the Secretary to present statements from witnesses, the
Secretary of Labor shall conduct an investigation and determine whether
there is reasonable cause to believe that the complaint has merit and
notify in writing the complainant and the person alleged to have committed
a violation of subsection (a) of the Secretary's findings. If the
Secretary of Labor concludes that there is reasonable cause to believe
that a violation of subsection (a) has occurred, the Secretary shall
accompany the Secretary's findings with a preliminary order providing the
relief prescribed by paragraph (3)(B). Not later than 30 days after the
date of notification of findings under this paragraph, either the person
alleged to have committed the violation or the complainant may file
objections to the findings or preliminary order, or both, and request a
hearing on the record. The filing of such objections shall not operate to
stay any reinstatement remedy contained in the preliminary order. Such
hearings shall be conducted expeditiously. If a hearing is not requested
in such 30-day period, the preliminary order shall be deemed a final order
that is not subject to judicial review.
`(i) REQUIRED SHOWING BY COMPLAINANT- The Secretary of Labor
shall dismiss a complaint filed under this subsection and shall not
conduct an investigation otherwise required under subparagraph (A)
unless the complainant makes a prima facie showing that any behavior
described in paragraphs (1) through (4) of subsection (a) was a
contributing factor in the unfavorable personnel action alleged in the
complaint.
`(ii) SHOWING BY EMPLOYER- Notwithstanding a finding by the
Secretary that the complainant has made the showing required under
clause (i), no investigation otherwise required under subparagraph (A)
shall be conducted if the employer demonstrates, by clear and convincing
evidence, that the employer would have taken the same unfavorable
personnel action in the absence of that behavior.
`(iii) CRITERIA FOR DETERMINATION BY SECRETARY- The Secretary
may determine that a violation of subsection (a) has occurred only if
the complainant demonstrates that any behavior described in paragraphs
(1) through (4) of subsection (a) was a contributing factor in the
unfavorable personnel action alleged in the complaint.
`(iv) PROHIBITION- Relief may not be ordered under subparagraph
(A) if the employer demonstrates by clear and convincing evidence that
the employer would have taken the same unfavorable personnel action in
the absence of that behavior.
`(A) DEADLINE FOR ISSUANCE; SETTLEMENT AGREEMENTS- Not later than
120 days after the date of conclusion of a hearing under paragraph (2),
the Secretary of Labor shall issue a final order providing the relief
prescribed by this paragraph or denying the complaint. At any time before
issuance of a final order, a proceeding under this subsection may be
terminated on the basis of a settlement agreement entered into by the
Secretary of Labor, the complainant, and the person alleged to have
committed the violation.
`(B) REMEDY- If, in response to a complaint filed under paragraph
(1), the Secretary of Labor determines that a violation of subsection (a)
has occurred, the Secretary of Labor shall order the person who committed
such violation to--
`(i) take affirmative action to abate the
violation;
`(ii) reinstate the complainant to his or her former position
together with the compensation (including back pay) and restore the
terms, conditions, and privileges associated with his or her employment;
and
`(iii) provide compensatory damages to the
complainant.
If such an order is issued under this paragraph, the Secretary of
Labor, at the request of the complainant, shall assess against the person
whom the order is issued a sum equal to the aggregate amount of all costs
and expenses (including attorney's and expert witness fees) reasonably
incurred, as determined by the Secretary of Labor, by the complainant for,
or in connection with, the bringing the complaint upon which the order was
issued.
`(C) FRIVOLOUS COMPLAINTS- If the Secretary of Labor finds that a
complaint under paragraph (1) is frivolous or has been brought in bad
faith, the Secretary of Labor may award to the prevailing employer a
reasonable attorney's fee not exceeding $1,000.
`(A) APPEAL TO COURT OF APPEALS- Any person adversely affected or
aggrieved by an order issued under paragraph (3) may obtain review of the
order in the United States Court of Appeals for the circuit in which the
violation, with respect to which the order was issued, allegedly occurred
or the circuit in which the complainant resided on the date of such
violation. The petition for review must be filed not later than 60 days
after the date of issuance of the final order of the Secretary of Labor.
Review shall conform to chapter 7 of title 5, United States Code. The
commencement of proceedings under this subparagraph shall not, unless
ordered by the court, operate as a stay of the order.
`(B) LIMITATION ON COLLATERAL ATTACK- An order of the Secretary of
Labor with respect to which review could have been obtained under
subparagraph (A) shall not be subject to judicial review in any criminal
or other civil proceeding.
`(5) ENFORCEMENT OF ORDER BY SECRETARY OF LABOR- Whenever any person
has failed to comply with an order issued under paragraph (3), the Secretary
of Labor may file a civil action in the United States district court for the
district in which the violation was found to occur to enforce such order. In
actions brought under this paragraph, the district courts shall have
jurisdiction to grant all appropriate relief, including, but not to be
limited to, injunctive relief and compensatory damages.
`(6) ENFORCEMENT OF ORDER BY PARTIES-
`(A) COMMENCEMENT OF ACTION- A person on whose behalf an order was
issued under paragraph (3) may commence a civil action against the person
to whom such order was issued to require compliance with such order. The
appropriate United States district court shall have jurisdiction, without
regard to the amount in controversy or the citizenship of the parties, to
enforce such order.
`(B) ATTORNEY FEES- The court, in issuing any final order under
this paragraph, may award costs of litigation (including reasonable
attorney and expert witness fees) to any party whenever the court
determines such award costs is appropriate.
`(c) MANDAMUS- Any nondiscretionary duty imposed by this section shall
be enforceable in a mandamus proceeding brought under section 1361 of title
28, United States Code.
`(d) NONAPPLICABILITY TO DELIBERATE VIOLATIONS- Subsection (a) shall
not apply with respect to an employee of a pipeline, contractor or
subcontractor who, acting without direction from the pipeline contractor or
subcontractor (or such person's agent), deliberately causes a violation of any
requirement relating to pipeline safety under this chapter or any other law of
the United States.
`(e) CONTRACTOR DEFINED- In this section, the term `contractor' means
a company that performs safety-sensitive functions by contract for a
pipeline.'.
(b) CIVIL PENALTY- Section 60122(a) is amended by adding at the end
the following:
`(3) A person violating section 60129, or an order issued thereunder,
is liable to the Government for a civil penalty of not more than $1,000 for
each violation. The penalties provided by paragraph (1) do not apply to a
violation of section 60129 or an order issued thereunder.'.
(c) CONFORMING AMENDMENT- The chapter analysis for chapter 601 is
amended by adding at the end the following:
`60129. Protection of employees providing pipeline safety
information.'.
SEC. 775. STATE PIPELINE SAFETY ADVISORY COMMITTEES.
Within 90 days after receiving recommendations for improvements to
pipeline safety from an advisory committee appointed by the Governor of any
State, the Secretary of Transportation shall respond in writing to the
committee setting forth what action, if any, the Secretary will take on those
recommendations and the Secretary's reasons for acting or not acting upon any
of the recommendations.
SEC. 776. FINES AND PENALTIES.
The Inspector General of the Department of Transportation shall
conduct an analysis of the Department's assessment of fines and penalties on
gas transmission and hazardous liquid pipelines, including the cost of
corrective actions required by the Department in lieu of fines, and, no later
than 6 months after the date of enactment of this Act, shall provide a report
to the Senate Committee on Commerce, Science, and Transportation and the House
Committee on Transportation and Infrastructure on any findings and
recommendations for actions by the Secretary or Congress to ensure the fines
assessed are an effective deterrent for reducing safety risks.
SEC. 777. STUDY OF RIGHTS-OF-WAY.
The Secretary of Transportation is authorized to conduct a study on
how best to preserve environmental resources in conjunction with maintaining
pipeline rights-of-way. The study shall recognize pipeline operators'
regulatory obligations to maintain rights-of-way and to protect public
safety.
SEC. 778. STUDY OF NATURAL GAS RESERVE.
(a) FINDINGS- Congress finds that:
(1) In the last few months, natural gas prices across the country
have tripled.
(2) In California, natural gas prices have increased twenty-fold,
from $3 per million British thermal units to nearly $60 per million British
thermal units.
(3) One of the major causes of these price increases is a lack of
supply, including a lack of natural gas reserves.
(4) The lack of a reserve was compounded by the rupture of an El
Paso Natural Gas Company pipeline in Carlsbad, New Mexico on August 1,
2000.
(5) Improving pipeline safety will help prevent similar accidents
that interrupt the supply of natural gas and will help save
lives.
(6) It is also necessary to find solutions for the lack of natural
gas reserves that could be used during emergencies.
(b) STUDY BY THE NATIONAL ACADEMY OF SCIENCES- The Secretary of Energy
shall request the National Academy of Sciences to--
(A) determine the causes of recent increases in the price of
natural gas, including whether the increases have been caused by problems
with the supply of natural gas or by problems with the natural gas
transmission system;
(B) identify any Federal or State policies that may have
contributed to the price increases; and
(C) determine what Federal action would be necessary to improve
the reserve supply of natural gas for use in situations of natural gas
shortages and price increases, including determining the feasibility and
advisability of a Federal strategic natural gas reserve system;
and
(2) not later than 60 days after the date of enactment of this Act,
submit to Congress a report on the results of the study.
SEC. 779. STUDY AND REPORT ON NATURAL GAS PIPELINE AND STORAGE
FACILITIES IN NEW ENGLAND.
(a) STUDY- The Federal Energy Regulatory Commission, in consultation
with the Department of Energy, shall conduct a study on the natural gas
pipeline transmission network in New England and natural gas storage
facilities associated with that network. In carrying out the study, the
Commission shall consider--
(1) the ability of natural gas pipeline and storage facilities in
New England to meet current and projected demand by gas-fired power
generation plants and other consumers;
(2) capacity constraints during unusual weather periods;
(3) potential constraint points in regional, interstate, and
international pipeline capacity serving New England; and
(4) the quality and efficiency of the Federal environmental review
and permitting process for natural gas pipelines.
(b) REPORT- Not later than 120 days after the date of the enactment of
this Act, the Federal Energy Regulatory Commission shall prepare and submit to
the Senate Committee on Energy and Natural Resources and the appropriate
committee of the House of Representatives a report containing the results of
the study conducted under subsection (a), including recommendations for
addressing potential natural gas transmission and storage capacity problems in
New England.
PART III--PIPELINE SECURITY SENSITIVE INFORMATION
SEC. 781. MEETING COMMUNITY RIGHT TO KNOW WITHOUT SECURITY
RISKS.
Section 60117 is amended by adding at the end the following:
`(l) Withholding Certain Information-
`(1) IN GENERAL- Notwithstanding any other provision of this chapter
requiring the Secretary to provide information obtained by the Secretary or
an officer, employee, or agent in carrying out this chapter to State or
local government officials, the public, or any other person, the Secretary
shall withhold such information if it is information that is described in
section 552(b)(1)(A) of title 5, United States Code.
`(2) CONDITIONAL RELEASE- Notwithstanding paragraph (1), upon the
receipt of assurances satisfactory to the Secretary that the information
will be handled appropriately, the Secretary may provide information
permitted to be withheld under that paragraph--
`(A) to the owner or operator of the affected pipeline
system;
`(B) to an officer, employee or agent of a Federal, State, tribal,
or local government, including a volunteer fire department, concerned with
carrying out this chapter, with protecting the facilities, with protecting
public safety, or with national security issues;
`(C) in an administrative or judicial proceeding brought under
this chapter or an administrative or judicial proceeding that addresses
terrorist actions or threats of such actions; or
`(D) to such other persons as the Secretary determines necessary
to protect public safety and security.
`(3) REPORT TO CONGRESS- The Secretary shall provide an annual
report to the Congress, in appropriate form as determined by the Secretary,
containing a summary of determinations made by the Secretary during the
preceding year to withhold information from release under paragraph
(1).'.
SEC. 782. TECHNICAL ASSISTANCE FOR SECURITY OF PIPELINE
FACILITIES.
The Secretary of Transportation may provide technical assistance to an
operator of a pipeline facility or to State, tribal, or local officials to
prevent or respond to acts of terrorism that may impact the pipeline facility,
including--
(1) actions by the Secretary that support the use of National Guard
or State or Federal personnel to provide additional security for a pipeline
facility at risk of terrorist attack or in response to such an
attack;
(2) use of resources available to the Secretary to develop and
implement security measures for a pipeline facility;
(3) identification of security issues with respect to the operation
of a pipeline facility; and
(4) the provision of information and guidance on security practices
that prevent damage to pipeline facilities from terrorist
attacks.
SEC. 783. CRIMINAL PENALTIES FOR DAMAGING OR DESTROYING A
FACILITY.
Section 60123(b) of title 49, United States Code, is amended--
(1) by striking `or' after `gas pipeline facility' and inserting a
comma; and
(2) by inserting after `liquid pipeline facility' the following: `,
or either an intrastate gas pipeline facility or an intrastate hazardous
liquid pipeline facility that is used in interstate or foreign commerce or
in any activity affecting interstate or foreign commerce'.
DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING
EFFICIENCY
TITLE VIII--FUELS AND VEHICLES
Subtitle A--CAFE Standards, Alternative Fuels, and Advanced
Technology
SEC. 801. INCREASED FUEL ECONOMY STANDARDS.
(a) REQUIREMENT FOR NEW REGULATIONS-
(1) IN GENERAL- The Secretary of Transportation shall issue, under
section 32902 of title 49, United States Code, new regulations setting forth
increased average fuel economy standards for automobiles that are determined
on the basis of the maximum feasible average fuel economy levels for the
automobiles, taking into consideration the matters set forth in subsection
(f) of such section.
(2) TIME FOR ISSUING REGULATIONS-
(A) NON-PASSENGER AUTOMOBILES- For non-passenger automobiles, the
Secretary of Transportation shall issue the final regulations not later
than 15 months after the date of the enactment of this Act.
(B) PASSENGER AUTOMOBILES- For passenger automobiles, the
Secretary of Transportation shall issue--
(i) the proposed regulations not later than 180 days after the
date of the enactment of this Act; and
(ii) the final regulations not later than 2 years after that
date.
(b) PHASED INCREASES- The regulations issued pursuant to subsection
(a) shall specify standards that take effect successively over several vehicle
model years not exceeding 15 vehicle model years.
(c) CLARIFICATION OF AUTHORITY TO AMEND PASSENGER AUTOMOBILE STANDARD-
Section 32902(b) of title 49, United States Code, is amended by inserting
before the period at the end the following: `or such other number as the
Secretary prescribes under subsection (c)'.
(d) ENVIRONMENTAL ASSESSMENT- When issuing final regulations setting
forth increased average fuel economy standards under this section, the
Secretary of Transportation shall also issue an environmental assessment of
the effects of the implementation of the increased standards on the
environment under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Department of Transportation for fiscal year 2003, to
remain available until expended, $2,000,000 to carry out this section.
SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL INCREASE IN FUEL
ECONOMY STANDARDS.
(a) CONDITION FOR APPLICABILITY- If the Secretary of Transportation
fails to issue final regulations with respect to non-passenger automobiles
under section 801, or fails to issue final regulations with respect to
passenger automobiles under such section, on or before the date by which such
final regulations are required by such section to be issued, respectively,
then this section shall apply with respect to a bill described in subsection
(b).
(b) BILL- A bill referred to in this subsection is a bill that
satisfies the following requirements:
(1) INTRODUCTION- The bill is introduced by one or more Members of
Congress not later than 60 days after the date referred to in subsection
(a).
(2) TITLE- The title of the bill is as follows: `A bill to establish
new average fuel economy standards for certain motor vehicles.'.
(3) TEXT- The bill provides after the enacting clause only the text
specified in subparagraph (A) or (B) or any provision described in
subparagraph (C), as follows:
(A) NON-PASSENGER AUTOMOBILES- In the case of a bill relating to a
failure timely to issue final regulations relating to non-passenger
automobiles, the following text:
`That, section 32902 of title 49, United States Code, is amended by
adding at the end the following new subsection:
`(X) NON-PASSENGER AUTOMOBILES- The average fuel economy
standard for non-passenger automobiles manufactured by a manufacturer in a
model year after model year XX shall be XX miles per gallon.',
the first blank space being filled in with a subsection designation, the
second blank space being filled in with the number of a year, and the third
blank space being filled in with a number.
(B) PASSENGER AUTOMOBILES- In the case of a bill relating to a
failure timely to issue final regulations relating to passenger
automobiles, the following text:
`That, section 32902(b) of title 49, United States Code, is amended to
read as follows:
`(b) PASSENGER AUTOMOBILES- Except as provided in this section, the
average fuel economy standard for passenger automobiles manufactured by a
manufacturer in a model year after model year XX shall be XX
miles per gallon.', the first blank space being filled in with the number of a
year and the second blank space being filled in with a number.
(C) SUBSTITUTE TEXT- Any text substituted by an amendment that is
in order under subsection (c)(3).
(c) EXPEDITED PROCEDURES- A bill described in subsection (b) shall be
considered in a House of Congress in accordance with the procedures provided
for the consideration of joint resolutions in paragraphs (3) through (8) of
section 8066(c) of the Department of Defense Appropriations Act, 1985 (as
contained in section 101(h) of Public Law 98-473; 98 Stat. 1936), with the
following exceptions:
(1) REFERENCES TO RESOLUTION- The references in such paragraphs to a
resolution shall be deemed to refer to the bill described in subsection
(b).
(2) COMMITTEES OF JURISDICTION- The committees to which the bill is
referred under this subsection shall--
(A) in the Senate, be the Committee on Commerce, Science, and
Transportation; and
(B) in the House of Representatives, be the Committee on Energy
and Commerce.
(A) AMENDMENTS IN ORDER- Only four amendments to the bill are in
order in each House, as follows:
(i) Two amendments proposed by the majority leader of that
House.
(ii) Two amendments proposed by the minority leader of that
House.
(B) FORM AND CONTENT- To be in order under subparagraph (A), an
amendment shall propose to strike all after the enacting clause and
substitute text that only includes the same text as is proposed to be
stricken except for one or more different numbers in the
text.
(C) DEBATE, ET CETERA- Subparagraph (B) of section 8066(c)(5) of
the Department of Defense Appropriations Act, 1985 (98 Stat. 1936) shall
apply to the consideration of each amendment proposed pursuant to
subparagraph (A) of this paragraph in the same manner as such subparagraph
(B) applies to debatable motions.
SEC. 803. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE
AVERAGE FUEL ECONOMY.
Section 32902(f) of title 49, United States Code, is amended to read
as follows:
`(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE AVERAGE FUEL
ECONOMY- When deciding maximum feasible average fuel economy under this
section, the Secretary of Transportation shall consider the following
matters:
`(1) Technological feasibility.
`(2) Economic practicability.
`(3) The effect of other motor vehicle standards of the Government
on fuel economy.
`(4) The need of the United States to conserve energy.
`(5) The desirability of reducing United States dependence on
imported oil.
`(6) The effects of the average fuel economy standards on motor
vehicle and passenger safety.
`(7) The effects of increased fuel economy on air
quality.
`(8) The adverse effects of average fuel economy standards on the
relative competitiveness of manufacturers.
`(9) The effects of compliance with average fuel economy standards
on levels of employment in the United States.
`(10) The cost and lead time necessary for the introduction of the
necessary new technologies.
`(11) The potential for advanced technology vehicles, such as hybrid
and fuel cell vehicles, to contribute to the achievement of significant
reductions in fuel consumption.
`(12) The extent to which the necessity for vehicle manufacturers to
incur near-term costs to comply with the average fuel economy standards
adversely affects the availability of resources for the development of
advanced technology for the propulsion of motor vehicles.
`(13) The report of the National Research Council that is entitled
`Effectiveness and Impact of Corporate Average Fuel Economy Standards',
issued in January 2002.'.
SEC. 804. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE
FUELED VEHICLES.
Section 32906(a)(1) of title 49, United States Code, is
amended--
(1) in subparagraph (A), by striking `1993-2004' and inserting `1993
through 2008'; and
(2) in subparagraph (B), by striking `2005-2008' and inserting `2009
through 2012'.
SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY
TRUCKS.
(a) VEHICLE FLEETS NOT COVERED BY REQUIREMENT IN ENERGY POLICY ACT OF
1992-
(1) HYBRID VEHICLES- The head of each agency of the executive branch
shall coordinate with the Administrator of General Services to ensure that
only hybrid vehicles are procured by or for each agency fleet of light duty
trucks that is not in a fleet of vehicles to which section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) applies.
(2) WAIVER AUTHORITY- The head of an agency, in consultation with
the Administrator, may waive the applicability of the policy regarding the
procurement of hybrid vehicles in paragraph (1) to that agency to the extent
that the head of that agency determines necessary--
(A) to meet specific requirements of the agency for capabilities
of light duty trucks;
(B) to procure vehicles consistent with the standards applicable
to the procurement of fleet vehicles for the Federal
Government;
(C) to adjust to limitations on the commercial availability of
light duty trucks that are hybrid vehicles; or
(D) to avoid the necessity of procuring a hybrid vehicle for the
agency when each of the hybrid vehicles available for meeting the
requirements of the agency has a cost to the United States that exceeds
the costs of comparable nonhybrid vehicles by a factor that is
significantly higher than the difference between--
(i) the real cost of the hybrid vehicle to retail purchasers,
taking into account the benefit of any tax incentives available to
retail purchasers for the purchase of the hybrid vehicle;
and
(ii) the costs of the comparable nonhybrid vehicles to retail
purchasers.
(3) APPLICABILITY TO PROCUREMENTS AFTER FISCAL YEAR 2004- This
subsection applies with respect to procurements of light duty trucks in
fiscal year 2005 and subsequent fiscal years.
(b) REQUIREMENT TO EXCEED REQUIREMENT IN ENERGY POLICY ACT OF 1992-
(1) LIGHT DUTY TRUCKS- The head of each agency of the executive
branch shall coordinate with the Administrator of General Services to ensure
that, of the light duty trucks procured in fiscal years after fiscal year
2004 for the fleets of light duty vehicles of the agency to which section
303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies--
(A) 5 percent of the total number of such trucks that are procured
in each of fiscal years 2005 and 2006 are alternative fueled vehicles or
hybrid vehicles; and
(B) 10 percent of the total number of such trucks that are
procured in each fiscal year after fiscal year 2006 are alternative fueled
vehicles or hybrid vehicles.
(2) COUNTING OF TRUCKS- Light duty trucks acquired for an agency of
the executive branch that are counted to comply with section 303 of the
Energy Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year shall be
counted to determine the total number of light duty trucks procured for that
agency for that fiscal year for the purposes of paragraph (1), but shall not
be counted to satisfy the requirement in that paragraph.
(c) DEFINITIONS- In this section:
(1) HYBRID VEHICLE- The term `hybrid vehicle' means--
(A) a motor vehicle that draws propulsion energy from onboard
sources of stored energy that are both--
(i) an internal combustion or heat engine using combustible
fuel; and
(ii) a rechargeable energy storage system; and
(B) any other vehicle that is defined as a hybrid vehicle in
regulations prescribed by the Secretary of Energy for the administration
of title III of the Energy Policy Act of 1992.
(2) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled
vehicle' has the meaning given that term in section 301 of the Energy Policy
Act of 1992 (42 U.S.C. 13211).
(d) INAPPLICABILITY TO DEPARTMENT OF DEFENSE- This section does not
apply to the Department of Defense, which is subject to comparable
requirements under section 318 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1055; 10 U.S.C. 2302
note).
SEC. 806. USE OF ALTERNATIVE FUELS.
(a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL FUELED VEHICLES- The
head of each agency of the executive branch shall coordinate with the
Administrator of General Services to ensure that, not later than January 1,
2009, the fuel actually used in the fleet of dual fueled vehicles used by the
agency is an alternative fuel.
(A) AUTHORITY- If the Secretary of Transportation determines that
not all of the dual fueled vehicles can operate on alternative fuels at
all times, the Secretary may waive the requirement of subsection (a) in
part, but only to the extent that--
(i) not later than January 1, 2009, not less than 50 percent of
the total annual volume of fuel used in the dual fueled vehicles shall
be alternative fuels; and
(ii) not later than January 1, 2011, not less than 75 percent of
the total annual volume of fuel used in the dual fueled vehicles shall
be alternative fuels.
(B) EXPIRATION- In no case may a waiver under subparagraph (A)
remain in effect after December 31, 2012.
(2) REGIONAL FUEL AVAILABILITY WAIVER- The Secretary may waive the
applicability of the requirement of subsection (a) to vehicles used by an
agency in a particular geographic area where the alternative fuel otherwise
required to be used in the vehicles is not reasonably available to retail
purchasers of the fuel, as certified to the Secretary by the head of the
agency.
(c) DEFINITIONS- In this section:
(1) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning
given that term in section 32901(a)(1) of title 49, United States
Code.
(2) DUAL FUELED VEHICLE- The term `dual fueled vehicle' has the
meaning given the term `dual fueled automobile' in section 32901(a)(8) of
title 49, United States Code.
(3) FLEET- The term `fleet', with respect to dual fueled vehicles,
has the meaning that is given that term with respect to light duty motor
vehicles in section 301(9) of the Energy Policy Act of 1992 (42 U.S.C.
13211(9)).
SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.
(a) EXPANSION OF SCOPE- The Secretary of Energy shall expand the
research and development program of the Department of Energy on advanced
technologies for improving the environmental cleanliness of vehicles to
emphasize research and development on the following:
(1) Fuel cells, including--
(A) high temperature membranes for fuel cells; and
(B) fuel cell auxiliary power systems.
(3) Advanced vehicle engine and emission control systems.
(4) Advanced batteries and power electronics for hybrid
vehicles.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Department of Energy for fiscal year 2003, the amount of
$225,000,000 for carrying out the expanded research and development program
provided for under this section.
SEC. 808. DIESEL FUELED VEHICLES.
(a) DIESEL COMBUSTION AND AFTER TREATMENT TECHNOLOGIES- The Secretary
of Energy shall accelerate research and development directed toward the
improvement of diesel combustion and after treatment technologies for use in
diesel fueled motor vehicles.
(1) COMPLIANCE WITH TIER 2 EMISSION STANDARDS BY 2010- The Secretary
shall carry out subsection (a) with a view to developing and demonstrating
diesel technology meeting tier 2 emission standards not later than
2010.
(2) TIER 2 EMISSION STANDARDS DEFINED- In this subsection, the term
`tier 2 emission standards' means the motor vehicle emission standards
promulgated by the Administrator of the Environmental Protection Agency on
February 10, 2000, under sections 202 and 211 of the Clean Air Act to apply
to passenger cars, light trucks, and larger passenger vehicles of model
years after the 2003 vehicle model year.
SEC. 809. FUEL CELL DEMONSTRATION.
(a) PROGRAM REQUIRED- The Secretary of Energy and the Secretary of
Defense shall jointly carry out a program to demonstrate--
(1) fuel cell technologies developed in the PNGV and Freedom Car
programs;
(2) fuel cell technologies developed in research and development
programs of the Department of Defense; and
(3) follow-on fuel cell technologies.
(b) PURPOSES OF PROGRAM- The purposes of the program are to identify
and support technological advances that are necessary to achieve accelerated
availability of fuel cell technology for use both for nonmilitary and military
purposes.
(c) COOPERATION WITH INDUSTRY-
(1) IN GENERAL- The demonstration program shall be carried out in
cooperation with industry, including the automobile manufacturing industry
and the automotive systems and component suppliers industry.
(2) COST SHARING- The Secretary of Energy and the Secretary of
Defense shall provide for industry to bear, in cash or in kind, at least
one-half of the total cost of carrying out the demonstration
program.
(d) DEFINITIONS- In this section:
(1) PNGV PROGRAM- The term `PNGV program' means the Partnership for
a New Generation of Vehicles, a cooperative program engaged in by the
Departments of Commerce, Energy, Transportation, and Defense, the
Environmental Protection Agency, the National Science Foundation, and the
National Aeronautics and Space Administration with the automotive industry
for the purpose of developing a new generation of vehicles with capabilities
resulting in significantly improved fuel efficiency together with low
emissions without compromising the safety, performance, affordability, or
utility of the vehicles.
(2) FREEDOM CAR PROGRAM- The term `Freedom Car program' means a
cooperative research program engaged in by the Department of Energy with the
United States Council on Automotive Research as a follow-on to the PNGV
program.
SEC. 810. BUS REPLACEMENT.
(a) REQUIREMENT FOR STUDY- The Secretary of Transportation shall carry
out a study to determine how best to provide for converting the composition of
the fleets of buses in metropolitan areas and school systems from buses
utilizing current diesel technology to--
(1) buses that draw propulsion from onboard fuel cells;
(2) buses that are hybrid electric vehicles;
(3) buses that are fueled by clean-burning fuels, such as renewable
fuels (including agriculture-based biodiesel fuels), natural gas, and
ultra-low sulphur diesel;
(4) buses that are powered by clean diesel engines: or
(5) an assortment of buses described in paragraphs (1), (2), (3),
and (4).
(1) REQUIREMENT- The Secretary of Transportation shall submit a
report on the results of the study on bus fleet conversions under subsection
(a) to Congress.
(2) CONTENT- The report on bus fleet conversions shall include the
following:
(A) An assessment of effectuating conversions by the following
means:
(i) Replacement of buses.
(ii) Replacement of power and propulsion systems in buses
utilizing current diesel technology.
(B) Feasible schedules for carrying out the
conversions.
(C) Estimated costs of carrying out the conversions.
(D) An assessment of the benefits of the conversions in terms of
emissions control and reduction of fuel consumption.
SEC. 811. AVERAGE FUEL ECONOMY STANDARDS FOR PICKUP TRUCKS.
(a) IN GENERAL- Section 32902(a) of title 49, United States Code, is
amended--
(1) by inserting `(1)' after the after `AUTOMOBILES- ';
and
(2) by adding at the end the following new paragraph:
`(2) The average fuel economy standard for pickup trucks manufactured
by a manufacturer in a model year after model year 2004 shall be no higher
than 20.7 miles per gallon. No average fuel economy standard prescribed under
another provision of this section shall apply to pickup trucks.'.
(b) DEFINITION OF PICKUP TRUCK- Section 32901(a) of such title is
amended by adding at the end the following new paragraph:
`(17) `pickup truck' has the meaning given that term in regulations
prescribed by the Secretary for the administration of this chapter, as in
effect on January 1, 2002, except that such term shall also include any
additional vehicle that the Secretary defines as a pickup truck in
regulations prescribed for the administration of this chapter after such
date.'.
SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR ALTERNATIVE FUEL
VEHICLES.
Section 102(a)(1) of title 23, United States Code, is amended by
inserting after `required' the following: `(unless, in the discretion of the
State transportation department, the vehicle is being operated on, or is being
fueled by, an alternative fuel (as defined in section 301(2) of the Energy
Policy Act of 1992 (42 U.S.C. 13211(2)))'.
SEC. 813. DATA COLLECTION.
Section 205 of the Department of Energy Organization Act (42 U.S.C.
7135) is amended by adding at the end the following:
`(m) In order to improve the ability to evaluate the effectiveness of
the Nation's renewable fuels mandate, the Administrator shall conduct and
publish the results of a survey of renewable fuels consumption in the motor
vehicle fuels market in the United States monthly, and in a manner designed to
protect the confidentiality of individual responses. In conducting the survey,
the Administrator shall collect information retrospectively to 1998, both on a
national basis and a regional basis, including--
(1) the quantity of renewable fuels produced;
(2) the cost of production;
(3) the cost of blending and marketing;
(4) the quantity of renewable fuels blended;
(5) the quantity of renewable fuels imported; and
SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.
(a) ESTABLISHMENT- The Secretary of Energy and the Secretary of
Transportation shall jointly establish a pilot program for awarding grants on
a competitive basis to eligible entities for the demonstration and commercial
application of alternative fuel school buses and ultra-low sulfur diesel
school buses.
(b) REQUIREMENTS- Not later than 3 months after the date of the
enactment of this Act, the Secretary shall establish and publish in the
Federal Register grant requirements on eligibility for assistance, and on
implementation of the program established under subsection (a), including
certification requirements to ensure compliance with this subtitle.
(c) SOLICITATION- Not later than 6 months after the date of the
enactment of this Act, the Secretary shall solicit proposals for grants under
this section.
(d) ELIGIBLE RECIPIENTS- A grant shall be awarded under this section
only--
(1) to a local governmental entity responsible for providing school
bus service for one or more public school systems; or
(2) jointly to an entity described in paragraph (1) and a
contracting entity that provides school bus service to the public school
system or systems.
(1) IN GENERAL- Grants under this section shall be for the
demonstration and commercial application of technologies to facilitate the
use of alternative fuel school buses and ultra-low sulfur diesel school
buses instead of buses manufactured before model year 1977 and
diesel-powered buses manufactured before model year 1991.
(2) NO ECONOMIC BENEFIT- Other than the receipt of the grant, a
recipient of a grant under this section may not receive any economic benefit
in connection with the receipt of the grant.
(3) PRIORITY OF GRANT APPLICATIONS- The Secretary shall give
priority to awarding grants to applicants who can demonstrate the use of
alternative fuel buses and ultra-low sulfur diesel school buses instead of
buses manufactured before model year 1977.
(f) CONDITIONS OF GRANT- A grant provided under this section shall
include the following conditions:
(1) All buses acquired with funds provided under the grant shall be
operated as part of the school bus fleet for which the grant was made for a
minimum of 5 years.
(2) Funds provided under the grant may only be used--
(A) to pay the cost, except as provided in paragraph (3), of new
alternative fuel school buses or ultra-low sulfur diesel school buses,
including State taxes and contract fees; and
(i) up to 10 percent of the price of the alternative fuel buses
acquired, for necessary alternative fuel infrastructure if the
infrastructure will only be available to the grant recipient;
and
(ii) up to 15 percent of the price of the alternative fuel buses
acquired, for necessary alternative fuel infrastructure if the
infrastructure will be available to the grant recipient and to other bus
fleets.
(3) The grant recipient shall be required to provide at least the
lesser of 15 percent of the total cost of each bus received or $15,000 per
bus.
(4) In the case of a grant recipient receiving a grant to
demonstrate ultra-low sulfur diesel school buses, the grant recipient shall
be required to provide documentation to the satisfaction of the Secretary
that diesel fuel containing sulfur at not more than 15 parts per million is
available for carrying out the purposes of the grant, and a commitment by
the applicant to use such fuel in carrying out the purposes of the
grant.
(g) BUSES- Funding under a grant made under this section may only be
used to demonstrate the use of new alternative fuel school buses or ultra-low
sulfur diesel school buses that--
(1) have a gross vehicle weight greater than 14,000
pounds;
(2) are powered by a heavy duty engine;
(3) in the case of alternative fuel school buses, emit not more
than--
(A) for buses manufactured in model year 2002, 2.5 grams per brake
horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of particulate matter; and
(B) for buses manufactured in model years 2003 through 2006, 1.8
grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of
nitrogen and .01 grams per brake horsepower-hour of particulate matter;
and
(4) in the case of ultra-low sulfur diesel school buses, emit not
more than the lesser of--
(A) the emissions of nonmethane hydrocarbons, oxides of nitrogen,
and particulate matter of the best performing technology of the same class
of ultra-low sulfur diesel school buses commercially available at the time
the grant is made; or
(B) the applicable following amounts--
(i) for buses manufactured in model year 2002 or 2003, 3.0 grams
per brake horsepower-hour of oxides of nitrogen and .01 grams per brake
horsepower-hour of particulate matter; and
(ii) for buses manufactured in model years 2004 through 2006,
2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and
oxides of nitrogen and .01 grams per brake horsepower-hour of
particulate matter.
(h) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the
maximum extent practicable to achieve nationwide deployment of alternative
fuel school buses through the program under this section, and shall ensure a
broad geographic distribution of grant awards, with a goal of no State
receiving more than 10 percent of the grant funding made available under this
section for a fiscal year.
(i) LIMIT ON FUNDING- The Secretary shall provide not less than 20
percent and not more than 25 percent of the grant funding made available under
this section for any fiscal year for the acquisition of ultra-low sulfur
diesel school buses.
(j) DEFINITIONS- For purposes of this section--
(1) the term `alternative fuel school bus' means a bus powered
substantially by electricity (including electricity supplied by a fuel
cell), or by liquefied natural gas, compressed natural gas, liquefied
petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85
percent by volume;
(2) the term `idling' means not turning off an engine while
remaining stationary for more than approximately 3 minutes; and
(3) the term `ultra-low sulfur diesel school bus' means a school bus
powered by diesel fuel which contains sulfur at not more than 15 parts per
million.
(k) REDUCTION OF SCHOOL BUS IDLING- Each local educational agency (as
defined in section 9101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801)) that receives Federal funds under the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged to
develop a policy to reduce the incidence of school buses idling at schools
when picking up and unloading students.
SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.
(a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program
for entering into cooperative agreements with private sector fuel cell bus
developers for the development of fuel cell-powered school buses, and
subsequently with not less than two units of local government using natural
gas-powered school buses and such private sector fuel cell bus developers to
demonstrate the use of fuel cell-powered school buses.
(b) COST SHARING- The non-Federal contribution for activities funded
under this section shall be not less than--
(1) 20 percent for fuel infrastructure development activities;
and
(2) 50 percent for demonstration activities and for development
activities not described in paragraph (1).
(c) FUNDING- No more than $25,000,000 of the amounts authorized under
section 815 may be used for carrying out this section for the period
encompassing fiscal years 2003 through 2006.
(d) REPORTS TO CONGRESS- Not later than 3 years after the date of the
enactment of this Act, and not later than October 1, 2006, the Secretary shall
transmit to the appropriate congressional committees a report that--
(1) evaluates the process of converting natural gas infrastructure
to accommodate fuel cell-powered school buses; and
(2) assesses the results of the development and demonstration
program under this section.
SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of Energy for
carrying out sections 814 and 815, to remain available until
expended--
(1) $50,000,000 for fiscal year 2003;
(2) $60,000,000 for fiscal year 2004;
(3) $70,000,000 for fiscal year 2005; and
(4) $80,000,000 for fiscal year 2006.
SEC. 817. TEMPORARY BIODIESEL CREDIT EXPANSION.
(a) BIODIESEL CREDIT EXPANSION- Section 312(b) of the Energy Policy
Act of 1992 (42 U.S.C. 13220(b)) is amended by striking paragraph (2) and
inserting the following:
`(A) IN GENERAL- A fleet or covered person--
`(i) may use credits allocated under subsection (a) to satisfy
more than 50 percent of the alternative fueled vehicle requirements of a
fleet or covered person under this title, title IV, and title V;
but
`(ii) may use credits allocated under subsection (a) to satisfy
100 percent of the alternative fueled vehicle requirements of a fleet or
covered person under title V for 1 or more of model years 2002 through
2005.
`(B) APPLICABILITY- Subparagraph (A) does not apply to a fleet or
covered person that is a biodiesel alternative fuel provider described in
section 501(a)(2)(A).'.
(b) TREATMENT AS SECTION 508 CREDITS- Section 312(c) of the Energy
Policy Act of 1992 (42 U.S.C. 13220(c)) is amended--
(1) in the subsection heading, by striking `CREDIT NOT' and
inserting `TREATMENT AS'; and
(2) by striking `shall not be considered' and inserting `shall be
treated as'.
(c) ALTERNATIVE FUELED VEHICLE STUDY AND REPORT-
(1) DEFINITIONS- In this subsection:
(A) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning
given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C.
13211).
(B) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled
vehicle' has the meaning given the term in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211).
(C) LIGHT DUTY MOTOR VEHICLE- The term `light duty motor vehicle'
has the meaning given the term in section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211).
(D) SECRETARY- The term `Secretary' means the Secretary of
Energy.
(2) BIODIESEL CREDIT EXTENSION STUDY- As soon as practicable after
the date of enactment of this Act, the Secretary shall conduct a
study--
(A) to determine the availability and cost of light duty motor
vehicles that qualify as alternative fueled vehicles under title V of the
Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.); and
(i) the availability and cost of biodiesel;
with
(ii) the availability and cost of fuels that qualify as
alternative fuels under title V of the Energy Policy Act of 1992 (42
U.S.C. 13251 et seq.).
(3) REPORT- Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that--
(A) describes the results of the study conducted under paragraph
(2); and
(B) includes any recommendations of the Secretary for legislation
to extend the temporary credit provided under subsection (a) beyond model
year 2005.
SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.
Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is
amended--
(1) by striking `or a dual fueled vehicle' and inserting `, a dual
fueled vehicle, or a neighborhood electric vehicle';
(2) by striking `and' at the end of paragraph (13);
(3) by striking the period at the end of subparagraph (14) and
inserting `; and'; and
(4) by adding at the end the following:
`(15) the term `neighborhood electric vehicle' means a motor vehicle
that qualifies as both--
`(A) a low-speed vehicle, as such term is defined in section
571.3(b) of title 49, Code of Federal Regulations; and
`(B) a zero-emission vehicle, as such term is defined in section
86.1703-99 of title 40, Code of Federal Regulations.'.
SEC. 819. CREDIT FOR HYBRID VEHICLES, DEDICATED ALTERNATIVE FUEL
VEHICLES, AND INFRASTRUCTURE.
Section 507 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended by adding at the end the following:
`(p) CREDITS FOR NEW QUALIFIED HYBRID MOTOR VEHICLES-
`(1) DEFINITIONS- In this subsection:
`(A) 2000 MODEL YEAR CITY FUEL EFFICIENCY- The term `2000 model
year city fuel efficiency', with respect to a motor vehicle, means fuel
efficiency determined in accordance with the following
tables:
`(i) In the case of a passenger automobile:
The 2000 model year city
`If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs
43.7 mpg
2,000 lbs
38.3 mpg
2,250 lbs
34.1 mpg
2,500 lbs
30.7 mpg
2,750 lbs
27.9 mpg
3,000 lbs
25.6 mpg
3,500 lbs
22.0 mpg
4,000 lbs
19.3 mpg
4,500 lbs
17.2 mpg
5,000 lbs
15.5 mpg
5,500 lbs
14.1 mpg
6,000 lbs
12.9 mpg
6,500 lbs
11.9 mpg
7,000 to 8,500 lbs
11.1 mpg.
`(ii) In the case of a light truck:
The 2000 model year city
`If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs
37.6 mpg
2,000 lbs
33.7 mpg
2,250 lbs
30.6 mpg
2,500 lbs
28.0 mpg
2,750 lbs
25.9 mpg
3,000 lbs
24.1 mpg
3,500 lbs
21.3 mpg
4,000 lbs
19.0 mpg
4,500 lbs
17.3 mpg
5,000 lbs
15.8 mpg
5,500 lbs
14.6 mpg
6,000 lbs
13.6 mpg
6,500 lbs
12.8 mpg
7,000 to 8,500 lbs
12.0 mpg.
`(B) ADMINISTRATOR- The term `Administrator' means the
Administrator of the Environmental Protection Agency.
`(C) ENERGY STORAGE DEVICE- The term `energy storage device' means
an onboard rechargeable energy storage system or similar storage
device.
`(D) FUEL EFFICIENCY- The term `fuel efficiency' means the
percentage increased fuel efficiency specified in table 1 in paragraph
(2)(C) over the average 2000 model year city fuel efficiency of vehicles
in the same weight class.
`(E) MAXIMUM AVAILABLE POWER- The term `maximum available power',
with respect to a new qualified hybrid motor vehicle that is a passenger
vehicle or light truck, means the quotient obtained by
dividing--
`(i) the maximum power available from the electrical storage
device of the new qualified hybrid motor vehicle, during a standard
10-second pulse power or equivalent test; by
`(I) the maximum power described in clause (i);
and
`(II) the net power of the internal combustion or heat engine,
as determined in accordance with standards established by the Society
of Automobile Engineers.
`(F) MOTOR VEHICLE- The term `motor vehicle' has the meaning given
the term in section 216 of the Clean Air Act (42 U.S.C.
7550).
`(G) NEW QUALIFIED HYBRID MOTOR VEHICLE- The term `new qualified
hybrid motor vehicle' means a motor vehicle that--
`(i) draws propulsion energy from both--
`(I) an internal combustion engine (or heat engine that uses
combustible fuel); and
`(II) an energy storage device;
`(ii) in the case of a passenger automobile or light
truck--
`(I) in the case of a 2001 or later model vehicle, receives a
certificate of conformity under the Clean Air Act (42 U.S.C. 7401 et
seq.) and produces emissions at a level that is at or below the
applicable qualifying California low emissions vehicle standards
established under authority of section 243(e)(2) of the Clean Air Act
(42 U.S.C. 7583(e)(2)) for that make and model year;
and
`(II) in the case of a 2004 or later model vehicle, is
certified by the Administrator as producing emissions at a level that
is at or below the level established for Bin 5 vehicles in the Tier 2
regulations promulgated by the Administrator under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year
vehicle; and
`(iii) employs a vehicle braking system that recovers waste
energy to charge an energy storage device.
`(H) VEHICLE INERTIA WEIGHT CLASS- The term `vehicle inertia
weight class' has the meaning given the term in regulations promulgated by
the Administrator for purposes of the administration of title II of the
Clean Air Act (42 U.S.C. 7521 et seq.).
`(A) IN GENERAL- The Secretary shall allocate a partial credit to
a fleet or covered person under this title if the fleet or person acquires
a new qualified hybrid motor vehicle that is eligible to receive a credit
under each of the tables in subparagraph (C).
`(B) AMOUNT- The amount of a partial credit allocated under
subparagraph (A) for a vehicle described in that subparagraph shall be
equal to the sum of--
`(i) the partial credits determined under table 1 in
subparagraph (C); and
`(ii) the partial credits determined under table 2 in
subparagraph (C).
`(C) TABLES- The tables referred to in subparagraphs (A) and (B)
are as follows:
`Table 1
--Amount of
`Partial credit for increased fuel efficiency:
--credit:
At least 125% but less than 150% of 2000 model year city fuel
efficiency
--0.14
At least 150% but less than 175% of 2000 model year city fuel
efficiency
--0.21
At least 175% but less than 200% of 2000 model year city fuel
efficiency
--0.28
At least 200% but less than 225% of 2000 model year city fuel
efficiency
--0.35
At least 225% but less than 250% of 2000 model year city fuel
efficiency
--0.50.
`Table 2
--Amount of
`Partial credit for `Maximum Available Power':
--credit:
At least 5% but less than 10%
--0.125
At least 10% but less than 20%
--0.250
At least 20% but less than 30%
--0.375
At least 30% or more
--0.500.
`(D) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the
year in which the acquisition of the qualified hybrid motor vehicle is
made, treat that credit as the acquisition of 1 alternative fueled vehicle
that the fleet or covered person is required to acquire under this
title.
`(3) REGULATIONS- The Secretary shall promulgate regulations under
which any Federal fleet that acquires a new qualified hybrid motor vehicle
will receive partial credits determined under the tables contained in
paragraph (2)(C) for purposes of meeting the requirements of section
303.
`(q) CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARDS USE OF DEDICATED
VEHICLES IN NONCOVERED FLEETS-
`(1) DEFINITIONS- In this subsection:
`(A) DEDICATED VEHICLE- The term `dedicated vehicle'
includes--
`(i) a light, medium, or heavy duty vehicle;
and
`(ii) a neighborhood electric vehicle.
`(B) MEDIUM OR HEAVY DUTY VEHICLE- The term `medium or heavy duty
vehicle' includes a vehicle that--
`(i) operates solely on alternative fuel; and
`(ii)(I) in the case of a medium duty vehicle, has a gross
vehicle weight rating of more than 8,500 pounds but not more than 14,000
pounds; or
`(II) in the case of a heavy duty vehicle, has a gross vehicle
weight rating of more than 14,000 pounds.
`(C) SUBSTANTIAL CONTRIBUTION- The term `substantial contribution'
(equal to 1 full credit) means not less than $15,000 in cash or in kind
services, as determined by the Secretary.
`(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a
fleet or covered person under this title if the fleet or person makes a
substantial contribution toward the acquisition and use of dedicated
vehicles by a person that owns, operates, leases, or otherwise controls a
fleet that is not covered by this title.
`(3) MULTIPLE CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES-
The Secretary shall issue 2 full credits to a fleet or covered person under
this title if the fleet or person acquires a medium or heavy duty dedicated
vehicle.
`(4) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the year
in which the acquisition of the dedicated vehicle is made, treat that credit
as the acquisition of 1 alternative fueled vehicle that the fleet or covered
person is required to acquire under this title.
`(5) LIMITATION- Per vehicle credits acquired under this subsection
shall not exceed the per vehicle credits allowed under this section to a
fleet for qualifying vehicles in each of the weight categories (light,
medium, or heavy duty).
`(r) CREDIT FOR SUBSTANTIAL INVESTMENT IN ALTERNATIVE FUEL
INFRASTRUCTURE-
`(1) DEFINITIONS- In this section, the term `qualifying
infrastructure' means--
`(A) equipment required to refuel or recharge alternative fueled
vehicles;
`(B) facilities or equipment required to maintain, repair, or
operate alternative fueled vehicles;
`(C) training programs, educational materials, or other activities
necessary to provide information regarding the operation, maintenance, or
benefits associated with alternative fueled vehicles; and
`(D) such other activities the Secretary considers to constitute
an appropriate expenditure in support of the operation, maintenance, or
further widespread adoption of or utilization of alternative fueled
vehicles.
`(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a
fleet or covered person under this title for investment in qualifying
infrastructure if the qualifying infrastructure is open to the general
public during regular business hours.
`(3) AMOUNT- For the purposes of credits under this
subsection--
`(A) 1 credit shall be equal to a minimum investment of $25,000 in
cash or in kind services, as determined by the Secretary;
and
`(B) except in the case of a Federal or State fleet, no part of
the investment may be provided by Federal or State funds.
`(4) USE OF CREDITS- At the request of a fleet or covered person
allocated a credit under this subsection, the Secretary shall, for the year
in which the investment is made, treat that credit as the acquisition of 1
alternative fueled vehicle that the fleet or covered person is required to
acquire under this title.'.
SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) IN GENERAL- Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended--
(1) by redesignating subsection (o) as subsection (q);
and
(2) by inserting after subsection (n) the following:
`(o) RENEWABLE FUEL PPROGRAM-
`(1) DEFINITIONS- In this section:
`(A) CELLULOSIC BIOMASS ETHANOL- The term `cellulosic biomass
ethanol' means ethanol derived from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis,
including--
`(i) dedicated energy crops and trees;
`(ii) wood and wood residues;
`(v) agricultural residues;
`(vii) animal wastes and other waste materials;
and
`(viii) municipal solid waste.
`(i) IN GENERAL- The term `renewable fuel' means motor vehicle
fuel that--
`(I)(aa) is produced from grain, starch, oilseeds, or other
biomass; or
`(bb) is natural gas produced from a biogas source, including
a landfill, sewage waste treatment plant, feedlot, or other place
where decaying organic material is found; and
`(II) is used to replace or reduce the quantity of fossil fuel
present in a fuel mixture used to operate a motor
vehicle.
`(ii) INCLUSION- The term `renewable fuel' includes cellulosic
biomass ethanol and biodiesel (as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
`(C) SMALL REFINERY- The term `small refinery' means a refinery
for which average aggregate daily crude oil throughput for the calendar
year (as determined by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does not exceed 75,000
barrels.
`(2) RENEWABLE FUEL PROGRAM-
`(A) IN GENERAL- Not later than 1 year from enactment of this
provision, the Administrator shall promulgate regulations ensuring that
gasoline sold or dispensed to consumers in the United States, on an annual
average basis, contains the applicable volume of renewable fuel as
specified in subparagraph (B). Regardless of the date of promulgation,
such regulations shall contain compliance provisions for refiners,
blenders, and importers, as appropriate, to ensure that the requirements
of this section are met, but shall not restrict where renewables can be
used, or impose any per-gallon obligation for the use of renewables. If
the Administrator does not promulgate such regulations, the applicable
percentage, on a volume percentage of gasoline basis, shall be 1.62 in
2004.
(i) CALENDAR YEARS 2004 THROUGH 2012- For the purpose of
subparagraph (A), the applicable volume for any of calendar years 2004
through 2012 shall be determined in accordance with the following
table:
Applicable volume of renewable fuel
`Calendar year:
(In billions of gallons)
--2.3
--2.6
--2.9
--3.2
--3.5
--3.9
--4.3
--4.7
--5.0.
`(ii) CALENDAR YEAR 2013 AND THEREAFTER- For the purpose of
subparagraph (A), the applicable volume for calendar year 2013 and each
calendar year thereafter shall be equal to the product obtained by
multiplying--
`(I) the number of gallons of gasoline that the Administrator
estimates will be sold or introduced into commerce in the calendar
year; and
`(aa) 5.0 billion gallons of renewable fuels; bears
to
`(bb) the number of gallons of gasoline sold or introduced into
commerce in calendar year 2012.
`(3) APPLICABLE PERCENTAGES- Not later than October 31 of each
calendar year, through 2011, the Administrator of the Energy Information
Administration shall provide the Administrator an estimate of the volumes of
gasoline sales in the United States for the coming calendar year. Based on
such estimates, the Administrator shall by November 30 of each calendar
year, through 2011, determine and publish in the Federal Register, the
renewable fuel obligation, on a volume percentage of gasoline basis,
applicable to refiners, blenders, distributors and importers, as
appropriate, for the coming calendar year, to ensure that the requirements
of paragraph (2) are met. For each calendar year, the Administrator shall
establish a single applicable percentage that applies to all parties, and
make provision to avoid redundant obligations. In determining the applicable
percentages, the Administrator shall make adjustments to account for the use
of renewable fuels by exempt small refineries during the previous
year.
`(4) CELLULOSIC BIOMASS ETHANOL- For the purpose of paragraph (2), 1
gallon of cellulosic biomass ethanol shall be considered to be the
equivalent of 1.5 gallon of renewable fuel.
`(A) IN GENERAL- The regulations promulgated to carry out this
subsection shall provide for the generation of an appropriate amount of
credits by any person that refines, blends, or imports gasoline that
contains a quantity of renewable fuel that is greater than the quantity
required under paragraph (2). Such regulations shall provide for the
generation of an appropriate amount of credits for biodiesel fuel. If a
small refinery notifies the Administrator that it waives the exemption
provided by this Act, the regulations shall provide for the generation of
credits by the small refinery beginning in the year following such
notification.
`(B) USE OF CREDITS- A person that generates credits under
subparagraph (A) may use the credits, or transfer all or a portion of the
credits to another person, for the purpose of complying with paragraph
(2).
`(C) LIFE OF CREDITS- A credit generated under this paragraph
shall be valid to show compliance:
(i) in the calendar year in which the credit was generated or
the next calendar year, or
(ii) in the calendar year in which the credit was generated or
next two consecutive calendar years if the Administrator promulgates
regulations under paragraph (6).
`(D) INABILITY TO PURCHASE SUFFICIENT CREDITS- The regulations
promulgated to carry out this subsection shall include provisions allowing
any person that is unable to generate or purchase sufficient credits to
meet the requirements under paragraph (2) to carry forward a renewables
deficit provided that, in the calendar year following the year in which
the renewables deficit is created, such person shall achieve compliance
with the renewables requirement under paragraph (2), and shall generate or
purchase additional renewables credits to offset the renewables deficit of
the previous year.
`(6) SEASONAL VARIATIONS IN RENEWABLE FUEL USE-
`(A) STUDY- For each of calendar years 2004 through 2012, the
Administrator of the Energy Information Administration, shall conduct a
study of renewable fuels blending to determine whether there are excessive
seasonal variations in the use of renewable fuels.
`(B) REGULATION OF EXCESSIVE SEASONAL VARIATIONS- If, for any
calendar year, the Administrator of the Energy Information Administration,
based on the study under subparagraph (A), makes the determinations
specified in subparagraph (C), the Administrator shall promulgate
regulations to ensure that 35 percent or more of the quantity of renewable
fuels necessary to meet the requirement of paragraph (2) is used during
each of the periods specified in subparagraph (D) of each subsequent
calendar year.
`(C) DETERMINATIONS- The determinations referred to in
subparagraph (B) are that--
`(i) less than 35 percent of the quantity of renewable fuels
necessary to meet the requirement of paragraph (2) has been used during
one of the periods specified in subparagraph (D) of the calendar year;
and
`(ii) a pattern of excessive seasonal variation described in
clause (i) will continue in subsequent calendar years.
`(D) PERIODS- The two periods referred to in this paragraph
are--
`(i) April through September; and
`(ii) January through March and October through
December.
`(E) EXCLUSIONS- Renewable fuels blended or consumed in 2004 in a
state which has received a waiver under section 209(b) shall not be
included in the study in subparagraph (A).
`(A) IN GENERAL- The Administrator, in consultation with the
Secretary of Agriculture and the Secretary of Energy, may waive the
requirement of paragraph (2) in whole or in part on petition by one or
more States by reducing the national quantity of renewable fuel required
under this subsection--
`(i) based on a determination by the Administrator, after public
notice and opportunity for comment, that implementation of the
requirement would severely harm the economy or environment of a State, a
region, or the United States; or
`(ii) based on a determination by the Administrator, after
public notice and opportunity for comment, that there is an inadequate
domestic supply or distribution capacity to meet the
requirement.
`(B) PETITIONS FOR WAIVERS- The Administrator, in consultation
with the Secretary of Agriculture and the Secretary of Energy, shall
approve or disapprove a State petition for a waiver of the requirement of
paragraph (2) within 90 days after the date on which the petition is
received by the Administrator.
`(C) TERMINATION OF WAIVERS- A waiver granted under subparagraph
(A) shall terminate after 1 year, but may be renewed by the Administrator
after consultation with the Secretary of Agriculture and the Secretary of
Energy.
`(8) STUDY AND WAIVER FOR INITIAL YEAR OF PROGRAM- Not later than
180 days from enactment, the Secretary of Energy shall complete for the
Administrator a study assessing whether the renewable fuels requirement
under paragraph (2) will likely result in significant adverse consumer
impacts in 2004, on a national, regional or state basis. Such study shall
evaluate renewable fuel supplies and prices, blendstock supplies, and supply
and distribution system capabilities. Based on such study, the Secretary
shall make specific recommendations to the Administrator regarding waiver of
the requirements of paragraph (2), in whole or in part, to avoid any such
adverse impacts. Within 270 days from enactment, the Administrator shall,
consistent with the recommendations of the Secretary waive, in whole or in
part, the renewable fuels requirement under paragraph (2) by reducing the
national quantity of renewable fuel required under this subsection in 2004.
This provision shall not be interpreted as limiting the Administrator's
authority to waive the requirements of paragraph (2) in whole, or in part,
under paragraph (7), pertaining to waivers.
`(A) IN GENERAL- The requirement of paragraph (2) shall not apply
to small refineries until January 1, 2008. Not later than December 31,
2006, the Secretary of Energy shall complete for the Administrator a study
to determine whether the requirement of paragraph (2) would impose a
disproportionate economic hardship on small refineries. For any small
refinery that the Secretary of Energy determines would experience a
disproportionate economic hardship, the Administrator shall extend the
small refinery exemption for such small refinery for no less than two
additional years.
`(i) EXTENSION OF EXEMPTION- A small refinery may at any time
petition the Administrator for an extension of the exemption from the
requirement of paragraph (2) for the reason of disproportionate economic
hardship. In evaluating a hardship petition, the Administrator, in
consultation with the Secretary of Energy, shall consider the findings
of the study in addition to other economic factors.
`(ii) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall
act on any petition submitted by a small refinery for a hardship
exemption not later than 90 days after the receipt of the
petition.
`(C) CREDIT PROGRAM- If a small refinery notifies the
Administrator that it waives the exemption provided by this Act, the
regulations shall provide for the generation of credits by the small
refinery beginning in the year following such notification.
`(D) OPT-IN FOR SMALL REFINERS- A small refinery shall be subject
to the requirements of this section if it notifies the Administrator that
it waives the exemption under subparagraph (A).
(b) PENALTIES AND ENFORCEMENT- Section 211(d) of the Clean Air Act (42
U.S.C. 7545(d)) is amended--
(A) in the first sentence, by striking `or (n)' each place it
appears and inserting `(n) or (o)'; and
(B) in the second sentence, by striking `or (m)' and inserting
`(m), or (o)'; and
(2) in the first sentence of paragraph (2), by striking `and (n)'
each place it appears and inserting `(n), and (o)'.
(c) EXCLUSION FROM ETHANOL WAIVER- Section 211(h) of the Clean Air Act
(42 U.S.C. 7545(h)) is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
`(5) EXCLUSION FROM ETHANOL WAIVER-
`(A) PROMULGATION OF REGULATIONS- Upon notification, accompanied
by supporting documentation, from the Governor of a State that the Reid
vapor pressure limitation established by paragraph (4) will increase
emissions that contribute to air pollution in any area in the State, the
Administrator shall, by regulation, apply, in lieu of the Reid vapor
pressure limitation established by paragraph (4), the Reid vapor pressure
limitation established by paragraph (1) to all fuel blends containing
gasoline and 10 percent denatured anhydrous ethanol that are sold, offered
for sale, dispensed, supplied, offered for supply, transported or
introduced into commerce in the area during the high ozone
season.
`(B) DEADLINE FOR PROMULGATION- The Administrator shall promulgate
regulations under subparagraph (A) not later than 90 days after the date
of receipt of a notification from a Governor under that
subparagraph.
`(i) IN GENERAL- With respect to an area in a State for which
the Governor submits a notification under subparagraph (A), the
regulations under that subparagraph shall take effect on the later
of--
`(I) the first day of the first high ozone season for the area
that begins after the date of receipt of the notification;
or
`(II) 1 year after the date of receipt of the
notification.
`(ii) EXTENSION OF EFFECTIVE DATE BASED ON DETERMINATION OF
INSUFFICIENT SUPPLY-
`(I) IN GENERAL- If, after receipt of a notification with
respect to an area from a Governor of a State under subparagraph (A),
the Administrator determines, on the Administrator's own motion or on
petition of any person and after consultation with the Secretary of
Energy, that the promulgation of regulations described in subparagraph
(A) would result in an insufficient supply of gasoline in the State,
the Administrator, by regulation--
`(aa) shall extend the effective date of the regulations under
clause (i) with respect to the area for not more than 1 year; and
`(bb) may renew the extension under item (aa) for two additional
periods, each of which shall not exceed 1 year.
`(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator
shall act on any petition submitted under subclause (I) not later than
180 days after the date of receipt of the
petition.'.
(d) SURVEY OF RENEWABLE FUEL MARKET-
(1) SURVEY AND REPORT- Not later than December 1, 2005, and annually
thereafter, the Administrator shall--
(A) conduct, with respect to each conventional gasoline use area
and each reformulated gasoline use area in each State, a survey to
determine the market shares of--
(i) conventional gasoline containing ethanol;
(ii) reformulated gasoline containing ethanol;
(iii) conventional gasoline containing renewable fuel;
and
(iv) reformulated gasoline containing renewable fuel;
and
(B) submit to Congress, and make publicly available, a report on
the results of the survey under subparagraph (A).
(2) RECORDKEEPING AND REPORTING REQUIREMENTS- The Administrator may
require any refiner, blender, or importer to keep such records and make such
reports as are necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator shall rely, to the extent practicable, on
existing reporting and recordkeeping requirements to avoid duplicative
requirements.
(3) APPLICABLE LAW- Activities carried out under this subsection
shall be conducted in a manner designed to protect confidentiality of
individual responses.
(e) RENEWABLE FUELS SAFE HARBOR-
(1) IN GENERAL- Notwithstanding any other provision of federal or
state law, no renewable fuel, as defined by this Act, used or intended to be
used as a motor vehicle fuel, nor any motor vehicle fuel containing such
renewable fuel, shall be deemed defective in design or manufacture by virtue
of the fact that it is, or contains, such a renewable fuel, if it does not
violate a control or prohibition imposed by the Administrator under section
211 of the Clean Air Act, as amended by this Act, and the manufacturer is in
compliance with all requests for information under section 211(b) of the
Clean Air Act, as amended by this Act. In the event that the safe harbor
under this section does not apply, the existence of a design defect or
manufacturing defect shall be determined under otherwise applicable
law.
(2) EXCEPTIONS- This subsection shall not apply to
ethers.
(3) EFFECTIVE DATE- This subsection shall be effective as of the
date of enactment and shall apply with respect to all claims filed on or
after that date.
SEC. 820A. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
Title III of the Energy Policy Act of 1992 is amended by striking
section 306 (42 U.S.C. 13215) and inserting the following:
`SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL
PURCHASING REQUIREMENT.
`(a) ETHANOL-BLENDED GASOLINE- The head of each Federal agency shall
ensure that, in areas in which ethanol-blended gasoline is reasonably
available at a generally competitive price, the Federal agency purchases
ethanol-blended gasoline containing at least 10 percent ethanol rather than
nonethanol-blended gasoline, for use in vehicles used by the agency that use
gasoline.
`(1) DEFINITION OF BIODIESEL- In this subsection, the term
`biodiesel' has the meaning given the term in section 312(f).
`(2) REQUIREMENT- The head of each Federal agency shall ensure that
the Federal agency purchases, for use in fueling fleet vehicles that use
diesel fuel used by the Federal agency at the location at which fleet
vehicles of the Federal agency are centrally fueled, in areas in which the
biodiesel-blended diesel fuel described in paragraphs (A) and (B) is
available at a generally competitive price--
`(A) as of the date that is 5 years after the date of enactment of
this paragraph, biodiesel-blended diesel fuel that contains at least 2
percent biodiesel, rather than nonbiodiesel-blended diesel fuel;
and
`(B) as of the date that is 10 years after the date of enactment
of this paragraph, biodiesel-blended diesel fuel that contains at least 20
percent biodiesel, rather than nonbiodiesel-blended diesel
fuel.
`(3) REQUIREMENT OF FEDERAL LAW- The provisions of this subsection
shall not be considered a requirement of Federal law for the purposes of
section 312.
`(c) EXEMPTION- This section does not apply to fuel used in vehicles
excluded from the definition of `fleet' by subparagraphs (A) through (H) of
section 301(9).'.
SEC. 820B. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE LOAN
GUARANTEE PROGRAM.
(a) DEFINITION OF MUNICIPAL SOLID WASTE- In this section, the term
`municipal solid waste' has the meaning given the term `solid waste' in
section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).
(b) ESTABLISHMENT OF PROGRAM- The Secretary of Energy shall establish
a program to provide guarantees of loans by private institutions for the
construction of facilities for the processing and conversion of municipal
solid waste into fuel ethanol and other commercial byproducts.
(c) REQUIREMENTS- The Secretary may provide a loan guarantee under
subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not available to the
applicant under reasonable terms or conditions sufficient to finance the
construction of a facility described in subsection (b);
(2) the prospective earning power of the applicant and the character
and value of the security pledged provide a reasonable assurance of
repayment of the loan to be guaranteed in accordance with the terms of the
loan; and
(3) the loan bears interest at a rate determined by the Secretary to
be reasonable, taking into account the current average yield on outstanding
obligations of the United States with remaining periods of maturity
comparable to the maturity of the loan.
(d) CRITERIA- In selecting recipients of loan guarantees from among
applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need for the
facility because of--
(A) the limited availability of land for waste disposal;
or
(B) a high level of demand for fuel ethanol or other commercial
byproducts of the facility.
(e) MATURITY- A loan guaranteed under subsection (b) shall have a
maturity of not more than 20 years.
(f) TERMS AND CONDITIONS- The loan agreement for a loan guaranteed
under subsection (b) shall provide that no provision of the loan agreement may
be amended or waived without the consent of the Secretary.
(g) ASSURANCE OF REPAYMENT- The Secretary shall require that an
applicant for a loan guarantee under subsection (b) provide an assurance of
repayment in the form of a performance bond, insurance, collateral, or other
means acceptable to the Secretary in an amount equal to not less than 20
percent of the amount of the loan.
(h) GUARANTEE FEE- The recipient of a loan guarantee under subsection
(b) shall pay the Secretary an amount determined by the Secretary to be
sufficient to cover the administrative costs of the Secretary relating to the
loan guarantee.
(i) FULL FAITH AND CREDIT- The full faith and credit of the United
States is pledged to the payment of all guarantees made under this section.
Any such guarantee made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be incontestable in the hands of
a holder of the guaranteed loan.
(j) REPORTS- Until each guaranteed loan under this section has been
repaid in full, the Secretary shall annually submit to Congress an report on
the activities of the Secretary under this section.
(k) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as are necessary to carry out this section.
(l) TERMINATION OF AUTHORITY- The authority of the Secretary to issue
a loan guarantee under subsection (b) terminates on the date that is 10 years
after the date of enactment of this Act.
Subtitle B--Additional Fuel Efficiency Measures
SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF AUTOMOBILES.
Section 32917 of title 49, United States Code, is amended to read as
follows:
`Sec. 32917. Standards for executive agency automobiles
`(a) BASELINE AVERAGE FUEL ECONOMY- The head of each executive agency
shall determine, for all automobiles in the agency's fleet of automobiles that
were leased or bought as a new vehicle in fiscal year 1999, the average fuel
economy for such automobiles. For the purposes of this section, the average
fuel economy so determined shall be the baseline average fuel economy for the
agency's fleet of automobiles.
`(b) INCREASE OF AVERAGE FUEL ECONOMY- The head of an executive agency
shall manage the procurement of automobiles for that agency in such a manner
that--
`(1) not later than September 30, 2003, the average fuel economy of
the new automobiles in the agency's fleet of automobiles is not less than 1
mile per gallon higher than the baseline average fuel economy determined
under subsection (a) for that fleet; and
`(2) not later than September 30, 2005, the average fuel economy of
the new automobiles in the agency's fleet of automobiles is not less than 3
miles per gallon higher than the baseline average fuel economy determined
under subsection (a) for that fleet.
`(c) CALCULATION OF AVERAGE FUEL ECONOMY- Average fuel economy shall
be calculated for the purposes of this section in accordance with guidance
which the Secretary of Transportation shall prescribe for the implementation
of this section.
`(d) DEFINITIONS- In this section:
`(1) The term `automobile' does not include any vehicle designed for
combat-related missions, law enforcement work, or emergency rescue
work.
`(2) The term `executive agency' has the meaning given that term in
section 105 of title 5.
`(3) The term `new automobile', with respect to the fleet of
automobiles of an executive agency, means an automobile that is leased for
at least 60 consecutive days or bought, by or for the agency, after
September 30, 1999.'.
SEC. 822. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VEHICLES.
Title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et
seq.) is amended by adding at the end the following:
`PART K--REDUCING TRUCK IDLING
`SEC. 400AAA. REDUCING TRUCK IDLING.
`(a) STUDY- Not later than 18 months after the date of enactment of
this section, the Secretary shall, in consultation with the Secretary of
Transportation, commence a study to analyze the potential fuel savings
resulting from long duration idling of main drive engines in heavy-duty
vehicles.
`(b) REGULATIONS- Upon completion of the study under subsection (a),
the Secretary may issue regulations requiring the installation of idling
reduction systems on all newly manufactured heavy-duty vehicles.
`(c) DEFINITIONS- As used in this section:
`(1) The term `heavy-duty vehicle' means a vehicle that has a gross
vehicle weight rating greater than 8,500 pounds and is powered by a diesel
engine.
`(2) The term `idling reduction system' means a device or system of
devices used to reduce long duration idling of a diesel engine in a
vehicle.
`(3) The term `long duration idling' means the operation of a main
drive engine of a heavy-duty vehicle for a period of more than 15
consecutive minutes when the main drive engine is not engaged in gear,
except that such term does not include idling as a result of traffic
congestion or other impediments to the movement of a heavy-duty
vehicle.
`(4) The term `vehicle' has the meaning given such term in section 4
of title 1, United States Code.'.
SEC. 823. CONSERVE BY BICYCLING PROGRAM.
(a) ESTABLISHMENT- The Secretary of Transportation shall establish a
Conserve By Bicycling pilot program that shall provide for up to 10
geographically dispersed projects to encourage the use of bicycles in place of
motor vehicles. Such projects shall use education and marketing to convert
motor vehicle trips to bike trips, document project results and energy
savings, and facilitate partnerships among entities in the fields of
transportation, law enforcement, education, public health, environment, or
energy. At least 20 percent of the cost of each project shall be provided from
State or local sources. Not later than 2 years after implementation of the
projects, the Secretary of Transportation shall submit a report to Congress on
the results of the pilot program.
(b) NATIONAL ACADEMY STUDY- The Secretary of Transportation shall
contract with the National Academy of Sciences to conduct a study on the
feasibility and benefits of converting motor vehicle trips to bicycle trips
and to issue a report, not later than 2 years after enactment of this Act, on
the findings of such study.
(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated to the Secretary of' Transportation $5,500,000, to remain
available until expended, to carry out the pilot program and study pursuant to
this section.
SEC. 824. FUEL CELL VEHICLE PROGRAM.
Not later than 1 year from date of enactment of this section, the
Secretary shall develop a program with timetables for developing technologies
to enable at least 100,000 hydrogen-fueled fuel cell vehicles to be available
for sale in the United States by 2010 and at least 2.5 million of such
vehicles to be available by 2020 and annually thereafter. The program shall
also include timetables for development of technologies to provide 50 million
gasoline equivalent gallons of hydrogen for sale in fueling stations in the
United States by 2010 and at least 2.5 billion gasoline equivalent gallons by
2020 and annually thereafter. The Secretary shall annually include a review of
the progress toward meeting the vehicle sales of Energy budget.
Subtitle C--Federal Reformulated Fuels
SEC. 831. SHORT TITLE.
This subtitle may be cited as the `Federal Reformulated Fuels Act of
2002'.
SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.
(a) USE OF LUST FUNDS FOR REMEDIATION OF CONTAMINATION FROM ETHER FUEL
ADDITIVES- Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended--
(1) in paragraph (7)(A)--
(A) by striking `paragraphs (1) and (2) of this subsection' and
inserting `paragraphs (1), (2), and (12)'; and
(B) by inserting `and section 9010' before `if'; and
(2) by adding at the end the following:
`(12) REMEDIATION OF CONTAMINATION FROM ETHER FUEL ADDITIVES-
`(A) IN GENERAL- The Administrator and the States may use funds
made available under section 9013(1) to carry out corrective actions with
respect to a release of methyl tertiary butyl ether or other ether fuel
additive that presents a threat to human health, welfare, or the
environment.
`(B) APPLICABLE AUTHORITY- Subparagraph (A) shall be carried
out--
`(i) in accordance with paragraph (2), except that a release
with respect to which a corrective action is carried out under
subparagraph (A) shall not be required to be from an underground storage
tank; and
`(ii) in the case of a State, in accordance with a cooperative
agreement entered into by the Administrator and the State under
paragraph (7).'.
(b) RELEASE PREVENTION AND COMPLIANCE- Subtitle I of the Solid Waste
Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking section 9010 and
inserting the following:
`SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.
`Funds made available under section 9013(2) from the Leaking
Underground Storage Tank Trust Fund may be used for conducting inspections, or
for issuing orders or bringing actions under this subtitle--
`(1) by a State (pursuant to section 9003(h)(7)) acting
under--
`(A) a program approved under section 9004; or
`(B) State requirements regulating underground storage tanks that
are similar or identical to this subtitle, as determined by the
Administrator; and
`(2) by the Administrator, acting under this subtitle or a State
program approved under section 9004.
`SEC. 9011. BEDROCK BIOREMEDIATION.
`The Administrator shall establish, at an institution of higher
education (as defined in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001)) with established expertise in bioremediation of contaminated
bedrock aquifers, a resource center--
`(1) to conduct research concerning bioremediation of methyl
tertiary butyl ether in contaminated underground aquifers, including
contaminated bedrock; and
`(2) to provide for States a technical assistance clearinghouse for
information concerning innovative technologies for bioremediation described
in paragraph (1).
`SEC. 9012. SOIL REMEDIATION.
`The Administrator may establish a program to conduct research
concerning remediation of methyl tertiary butyl ether contamination of soil,
including granitic or volcanic soil.
`SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.
`In addition to amounts made available under section 2007(f), there
are authorized to be appropriated from the Leaking Underground Storage Tank
Trust Fund, notwithstanding section 9508(c)(1) of the Internal Revenue Code of
1986--
`(1) to carry out section 9003(h)(12), $200,000,000 for fiscal year
2003, to remain available until expended;
`(2) to carry out section 9010--
`(A) $50,000,000 for fiscal year 2003; and
`(B) $30,000,000 for each of fiscal years 2004 through
2008;
`(3) to carry out section 9011--
`(A) $500,000 for fiscal year 2003; and
`(B) $300,000 for each of fiscal years 2004 through 2008;
and
`(4) to carry out section 9012--
`(A) $100,000 for fiscal year 2003; and
`(B) $50,000 for each of fiscal years 2004 through
2008.
(c) TECHNICAL AMENDMENTS- (1) Section 1001 of the Solid Waste Disposal
Act (42 U.S.C. prec. 6901) is amended by striking the item relating to section
9010 and inserting the following:
`Sec. 9010. Release prevention and compliance.
`Sec. 9011. Bedrock bioremediation.
`Sec. 9012. Soil remediation.
`Sec. 9013. Authorization of appropriations.'.
(2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C.
6991(3)(A)) is amended by striking `sustances' and inserting
`substances'.
(3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C.
6991b(f)(1)) is amended by striking `subsection (c) and (d) of this section'
and inserting `subsections (c) and (d)'.
(4) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C.
6991c(a)) is amended in the second sentence by striking `referred to' and all
that follows and inserting `referred to in subparagraph (A) or (B), or both,
of section 9001(2).'.
(5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is
amended--
(A) in subsection (a), by striking `study taking' and inserting
`study, taking';
(B) in subsection (b)(1), by striking `relevent' and inserting
`relevant'; and
(C) in subsection (b)(4), by striking `Evironmental' and inserting
`Environmental'.
SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.
(a) FINDINGS- Congress finds that--
(1) since 1979, methyl tertiary butyl ether (referred to in this
section as `MTBE') has been used nationwide at low levels in gasoline to
replace lead as an octane booster or anti-knocking agent;
(2) Public Law 101-549 (commonly known as the `Clean Air Act
Amendments of 1990') (42 U.S.C. 7401 et seq.) established a fuel oxygenate
standard under which reformulated gasoline must contain at least 2 percent
oxygen by weight;
(3) at the time of the adoption of the fuel oxygen standard,
Congress was aware that significant use of MTBE could result from the
adoption of that standard, and that the use of MTBE would likely be
important to the cost-effective implementation of that program;
(4) Congress is aware that gasoline and its component additives have
leaked from storage tanks, with consequences for water quality;
(5) the fuel industry responded to the fuel oxygenate standard
established by Public Law 101-549 by making substantial investments
in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing gasoline to the
marketplace;
(6) when leaked or spilled into the environment, MTBE may cause
serious problems of drinking water quality;
(7) in recent years, MTBE has been detected in water sources
throughout the United States;
(8) MTBE can be detected by smell and taste at low
concentrations;
(9) while small quantities of MTBE can render water supplies
unpalatable, the precise human health effects of MTBE consumption at low
levels are yet unknown;
(10) in the report entitled `Achieving Clean Air and Clean Water:
The Report of the Blue Ribbon Panel on Oxygenates in Gasoline' and dated
September 1999, Congress was urged--
(A) to eliminate the fuel oxygenate standard;
(B) to greatly reduce use of MTBE; and
(C) to maintain the environmental performance of reformulated
gasoline;
(A) reconsidered the relative value of MTBE in gasoline;
and
(B) decided to eliminate use of MTBE as a fuel
additive;
(12) the timeline for elimination of use of MTBE as a fuel additive
must be established in a manner that achieves an appropriate balance among
the goals of--
(A) environmental protection;
(B) adequate energy supply; and
(C) reasonable fuel prices; and
(13) it is appropriate for Congress to provide some limited
transition assistance--
(A) to merchant producers of MTBE who produced MTBE in response to
a market created by the oxygenate requirement contained in the Clean Air
Act; and
(B) for the purpose of mitigating any fuel supply problems that
may result from elimination of a widely-used fuel additive.
(b) PURPOSES- The purposes of this section are--
(1) to eliminate use of MTBE as a fuel oxygenate; and
(2) to provide assistance to merchant producers of MTBE in making
the transition from producing MTBE to producing other fuel
additives.
(c) AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS- Section 211(c)
of the Clean Air Act (42 U.S.C. 7545(c)) is amended--
(1) in paragraph (1)(A)--
(A) by inserting `fuel or fuel additive or' after `Administrator
any'; and
(B) by striking `air pollution which' and inserting `air
pollution, or water pollution, that';
(2) in paragraph (4)(B), by inserting `or water quality protection,'
after `emission control,'; and
(3) by adding at the end the following:
`(5) Prohibition on use of mtbe-
`(A) IN GENERAL- Subject to subparagraph (E), not later than 4
years after the date of enactment of this paragraph, the use of methyl
tertiary butyl ether in motor vehicle fuel in any State other than a State
described in subparagraph (C) is prohibited.
`(B) REGULATIONS- The Administrator shall promulgate regulations
to effect the prohibition in subparagraph (A).
`(C) STATES THAT AUTHORIZE USE- A State described in this
subparagraph is a State that submits to the Administrator a notice that
the State authorizes use of methyl tertiary butyl ether in motor vehicle
fuel sold or used in the State.
`(D) PUBLICATION OF NOTICE- The Administrator shall publish in the
Federal Register each notice submitted by a State under subparagraph
(C).
`(E) TRACE QUANTITIES- In carrying out subparagraph (A), the
Administrator may allow trace quantities of methyl tertiary butyl ether,
not to exceed 0.5 percent by volume, to be present in motor vehicle fuel
in cases that the Administrator determines to be
appropriate.
`(6) MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE-
`(i) GRANTS- The Secretary of Energy, in consultation with the
Administrator, may make grants to merchant producers of methyl tertiary
butyl ether in the United States to assist the producers in the
conversion of eligible production facilities described in subparagraph
(C) to the production of iso-octane and alkylates.
`(ii) Determination- The Administrator, in consultation with the
Secretary of Energy, may determine that transition assistance for the
production of iso-octane and alkylates is inconsistent with the
provisions of subparagraph (B) and, on that basis, may deny applications
for grants authorized by this provision.
`(B) FURTHER GRANTS- The Secretary of Energy, in consultation with
the Administrator, may also further make grants to merchant producers of
MTBE in the United States to assist the producers in the conversion of
eligible production facilities described in subparagraph (C) to the
production of such other fuel additives that, consistent with
211(c)--
`(i) unless the Administrator determines that such fuel
additives may reasonably be anticipated to endanger public health or the
environment;
`(ii) have been registered and have been tested or are being
tested in accordance with the requirements of this section;
and
`(iii) will contribute to replacing gasoline volumes lost as a
result of paragraph (5).
`(C) Eligible production facilities- A production facility shall
be eligible to receive a grant under this paragraph if the production
facility--
`(i) is located in the United States; and
`(ii) produced methyl tertiary butyl ether for consumption in
nonattainment areas during the period--
`(I) beginning on the date of enactment of this paragraph;
and
`(II) ending on the effective date of the prohibition on the
use of methyl tertiary butyl ether under paragraph
(5).
`(D) Authorization of appropriations- There is authorized to be
appropriated to carry out this paragraph $250,000,000 for each of fiscal
years 2003 through 2005.'.
(d) No Effect on Law Concerning State Authority- The amendments made
by subsection (c) have no effect on the law in effect on the day before the
date of enactment of this Act regarding the authority of States to limit the
use of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED
GASOLINE.
(1) In general- Section 211(k) of the Clean Air Act (42 U.S.C.
7545(k)) is amended--
(i) in the second sentence of subparagraph (A), by striking
`(including the oxygen content requirement contained in subparagraph
(B))';
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(B) in paragraph (3)(A), by striking clause (v);
(i) in subparagraph (A)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively; and
(ii) in subparagraph (C)--
(I) by striking clause (ii); and
(II) by redesignating clause (iii) as clause (ii);
and
(2) Effective date- The amendments made by paragraph (1) take effect
270 days after the date of enactment of this Act, except that such
amendments shall take effect upon enactment in any State that has received a
waiver under section 209(b) of the Clean Air Act.
(b) Maintenance of Toxic Air Pollutant Emission Reductions- Section
211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is amended--
(1) by striking `Within 1 year after the enactment of the Clean Air
Act Amendments of 1990,' and inserting the following:
`(A) In general- Not later than November 15, 1991,';
and
(2) by adding at the end the following:
`(B) Maintenance of toxic air pollutant emissions reductions from
reformulated gasoline-
`(i) Definitions- In this subparagraph the term `PADD' means a
Petroleum Administration for Defense District.
`(ii) Regulations regarding emissions of toxic air pollutants-
Not later than 270 days after the date of enactment of this
subparagraph, the Administrator shall establish, for each refinery or
importer (other than a refinery or importer in a State that has received
a waiver under section 209(b) with regard to gasoline produced for use
in that state), standards for toxic air pollutants from use of the
reformulated gasoline produced or distributed by the refinery or
importer that maintain the reduction of the average annual aggregate
emissions of toxic air pollutants for reformulated gasoline produced or
distributed by the refinery or importer during calendar years 1999 and
2000, determined on the basis of data collected by the Administrator
with respect to the refinery or importer.
(iii) Standards applicable to specific refineries or importers-
`(I) Applicability of standards- For any calendar year, the
standards applicable to a refinery or importer under clause (ii) shall
apply to the quantity of gasoline produced or distributed by the
refinery or importer in the calendar year only to the extent that the
quantity is less than or equal to the average annual quantity of
reformulated gasoline produced or distributed by the refinery or
importer during calendar years 1999 and 2000.
`(II) Applicability of other standards- For any calendar year,
the quantity of gasoline produced or distributed by a refinery or
importer that is in excess of the quantity subject to subclause (I)
shall be subject to standards for toxic air pollutants promulgated
under subparagraph (A) and paragraph (3)(B).
`(iv) Credit program- The Administrator shall provide for the
granting and use of credits for emissions of toxic air pollutants in the
same manner as provided in paragraph (7).
`(v) Regional protection of toxics reduction baselines-
`(I) In general- Not later than 60 days after the date of
enactment of this subparagraph, and not later than April 1 of each
calendar year that begins after that date of enactment, the
Administrator shall publish in the Federal Register a report that
specifies, with respect to the previous calendar
year--
`(aa) the quantity of reformulated gasoline produced that is in
excess of the average annual quantity of reformulated gasoline produced in 1999
and 2000; and
`(bb) the reduction of the average annual aggregate emissions of
toxic air pollutants in each PADD, based on retail survey data or data from
other appropriate sources.
`(II) Effect of failure to maintain aggregate toxics
reductions- If, in any calendar year, the reduction of the average
annual aggregate emissions of toxic air pollutants in a PADD fails to
meet or exceed the reduction of the average annual aggregate emissions
of toxic air pollutants in the PADD in calendar years 1999 and 2000,
the Administrator, not later than 90 days after the date of
publication of the report for the calendar year under subclause (I),
shall--
`(aa) identify, to the maximum extent practicable, the reasons
for the failure, including the sources, volumes, and characteristics of
reformulated gasoline that contributed to the failure; and
`(bb) promulgate revisions to the regulations promulgated under
clause (ii), to take effect not earlier than 180 days but not later than 270
days after the date of promulgation, to provide that, notwithstanding clause
(iii)(II), all reformulated gasoline produced or distributed at each refinery or
importer shall meet the standards applicable under clause (iii) not later than
April 1 of the year following the report in subclause (II) and for subsequent
years.
`(vi) Regulations to control hazardous air pollutants from motor
vehicles and motor vehicle fuels- Not later than July 1, 2004, the
Administrator shall promulgate final regulations to control hazardous
air pollutants from motor vehicles and motor vehicle fuels, as provided
for in section 80.1045 of title 40, Code of Federal Regulations (as in
effect on the date of enactment of this
subparagraph).'.
(c) Consolidation in Reformulated Gasoline Regulations- Not later than
180 days after the date of enactment of this Act, the Administrator shall
revise the reformulated gasoline regulations under subpart D of part 80 of
title 40, Code of Federal Regulations, to consolidate the regulations
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that title by
eliminating the less stringent requirements applicable to gasoline designated
for VOC-Control Region 2 and instead applying the more stringent requirements
applicable to gasoline designated for VOC-Control Region 1.
(d) Savings Clause- Nothing in this section is intended to affect or
prejudice any legal claims or actions with respect to regulations promulgated
by the Administrator prior to enactment of this Act regarding emissions of
toxic air pollutants from motor vehicles.
(e) Determination Regarding a State Petition- Section 211(k) of the
Clean Air Act (42 U.S.C. 7545(k)) is amended by inserting after paragraph (10)
the following:
`(11) Determination regarding a state petition-
`(A) In general- Notwithstanding any other provision of this
section, not less than 30 days after enactment of this paragraph the
Administrator must determine the adequacy of any petition received from a
Governor of a State to exempt gasoline sold in that State from the
requirements of paragraph (2)(B).
`(B) APPROVAL- If the determination in (A) is not made within
thirty days of enactment of this paragraph, the petition shall be deemed
approved.'.
SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL
ADDITIVES.
Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is
amended--
(A) by striking `may also' and inserting `shall, on a regular
basis,'; and
(B) by striking subparagraph (A) and inserting the
following:
`(A) to conduct tests to determine potential public health and
environmental effects of the fuel or additive (including carcinogenic,
teratogenic, or mutagenic effects); and'; and
(2) by adding at the end the following:
`(4) STUDY ON CERTAIN FUEL ADDITIVES AND BLENDSTOCKS-
`(A) IN GENERAL- Not later than 2 years after the date of
enactment of this paragraph, the Administrator shall--
`(i) conduct a study on the effects on public health, air
quality, and water resources of increased use of, and the feasibility of
using as substitutes for methyl tertiary butyl ether in
gasoline--
`(I) ethyl tertiary butyl ether;
`(II) tertiary amyl methyl ether;
`(III) di-isopropyl ether;
`(IV) tertiary butyl alcohol;
`(V) other ethers and heavy alcohols, as determined by then
Administrator;
`(ii) conduct a study on the effects on public health, air
quality, and water resources of the adjustment for ethanol-blended
reformulated gasoline to the VOC performance requirements otherwise
applicable under sections 211(k)(1) and 211(k)(3) of the Clean Air
Act.
`(iii) submit to the Committee on Environment and Public Works
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report describing the results of these
studies.
`(B) CONTRACTS FOR STUDY- In carrying out this paragraph, the
Administrator may enter into one or more contracts with nongovernmental
entities including but not limited to National Energy Laboratories and
institutions of higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)).'.
SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by
section 820(a)) is amended by inserting after subsection (o) the
following:
`(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES AND EMISSIONS MODEL-
`(1) ANTI-BACKSLIDING ANALYSIS-
`(A) DRAFT ANALYSIS- Not later than 4 years after the date of
enactment of this paragraph, the Administrator shall publish for public
comment a draft analysis of the changes in emissions of air pollutants and
air quality due to the use of motor vehicle fuel and fuel additives
resulting from implementation of the amendments made by the Federal
Reformulated Fuels Act of 2002.
`(B) FINAL ANALYSIS- After providing a reasonable opportunity for
comment but not later than 5 years after the date of enactment of this
paragraph, the Administrator shall publish the analysis in final
form.
`(2) EMISSIONS MODEL- For the purposes of this subsection, as soon
as the necessary data are available, the Administrator shall develop and
finalize an emissions model that reasonably reflects the effects of gasoline
characteristics or components on emissions from vehicles in the motor
vehicle fleet during calendar year 2005.'.
SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE
PROGRAM.
Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is
amended--
(1) by striking `(6) OPT-IN AREAS- (A) Upon' and inserting the
following:
(2) in subparagraph (B), by striking `(B) If' and inserting the
following:
`(ii) EFFECT OF INSUFFICIENT DOMESTIC CAPACITY TO PRODUCE
REFORMULATED GASOLINE- If';
(3) in subparagraph (A)(ii) (as redesignated by paragraph
(2))--
(A) in the first sentence, by striking `subparagraph (A)' and
inserting `clause (i)'; and
(B) in the second sentence, by striking `this paragraph' and
inserting `this subparagraph'; and
(4) by adding at the end the following:
`(B) OZONE TRANSPORT REGION-
`(i) APPLICATION OF PROHIBITION-
`(I) IN GENERAL- In addition to the provisions of subparagraph
(A), upon the application of the Governor of a State in the ozone
transport region established by section 184(a), the Administrator, not
later than 180 days after the date of receipt of the application,
shall apply the prohibition specified in paragraph (5) to any area in
the State (other than an area classified as a marginal, moderate,
serious, or severe ozone nonattainment area under subpart 2 of part D
of title I) unless the Administrator determines under clause (iii)
that there is insufficient capacity to supply reformulated
gasoline.
`(II) PUBLICATION OF APPLICATION- As soon as practicable after
the date of receipt of an application under subclause (I), the
Administrator shall publish the application in the Federal
Register.
`(ii) PERIOD OF APPLICABILITY- Under clause (i), the prohibition
specified in paragraph (5) shall apply in a State--
`(I) commencing as soon as practicable but not later than 2
years after the date of approval by the Administrator of the
application of the Governor of the State; and
`(II) ending not earlier than 4 years after the commencement
date determined under subclause (I).
`(iii) EXTENSION OF COMMENCEMENT DATE BASED ON INSUFFICIENT
CAPACITY-
`(I) IN GENERAL- If, after receipt of an application from a
Governor of a State under clause (i), the Administrator determines, on
the Administrator's own motion or on petition of any person, after
consultation with the Secretary of Energy, that there is insufficient
capacity to supply reformulated gasoline, the Administrator, by
regulation--
`(aa) shall extend the commencement date with respect to the
State under clause (ii)(I) for not more than 1 year; and
`(bb) may renew the extension under item (aa) for two additional
periods, each of which shall not exceed 1 year.
`(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator
shall act on any petition submitted under subclause (I) not later than
180 days after the date of receipt of the
petition.'.
SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is
amended--
(1) by striking `(C) A State' and inserting the
following:
`(C) AUTHORITY OF STATE TO CONTROL FUELS AND FUEL ADDITIVES FOR
REASONS OF NECESSITY-
`(i) IN GENERAL- A State'; and
(2) by adding at the end the following:
`(ii) ENFORCEMENT BY THE ADMINISTRATOR- In any case in which a
State prescribes and enforces a control or prohibition under clause (i),
the Administrator, at the request of the State, shall enforce the
control or prohibition as if the control or prohibition had been adopted
under the other provisions of this section.'.
SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.
(1) IN GENERAL- The Administrator of the Environmental Protection
Agency and the Secretary of Energy shall jointly conduct a study of Federal,
State, and local requirements concerning motor vehicle fuels,
including--
(A) requirements relating to reformulated gasoline, volatility
(measured in Reid vapor pressure), oxygenated fuel, and diesel fuel;
and
(B) other requirements that vary from State to State, region to
region, or locality to locality.
(2) REQUIRED ELEMENTS- The study shall assess--
(A) the effect of the variety of requirements described in
paragraph (1) on the supply, quality, and price of motor vehicle fuels
available to the consumer;
(B) the effect of the requirements described in paragraph (1) on
achievement of--
(i) national, regional, and local air quality standards and
goals; and
(ii) related environmental and public health protection
standards and goals;
(C) the effect of Federal, State, and local motor vehicle fuel
regulations, including multiple motor vehicle fuel requirements,
on--
(ii) the fuel distribution system; and
(iii) industry investment in new capacity;
(D) the effect of the requirements described in paragraph (1) on
emissions from vehicles, refineries, and fuel handling
facilities;
(E) the feasibility of developing national or regional motor
vehicle fuel slates for the 48 contiguous States that, while protecting
and improving air quality at the national, regional, and local levels,
could--
(i) enhance flexibility in the fuel distribution infrastructure
and improve fuel fungibility;
(ii) reduce price volatility and costs to consumers and
producers;
(iii) provide increased liquidity to the gasoline market;
and
(iv) enhance fuel quality, consistency, and supply;
and
(F) the feasibility of providing incentives, and the need for the
development of national standards necessary, to promote cleaner burning
motor vehicle fuel.
(1) IN GENERAL- Not later than June 1, 2006, the Administrator of
the Environmental Protection Agency and the Secretary of Energy shall submit
to Congress a report on the results of the study conducted under subsection
(a).
(A) IN GENERAL- The report shall contain recommendations for
legislative and administrative actions that may be taken--
(i) to improve air quality;
(ii) to reduce costs to consumers and producers;
and
(iii) to increase supply liquidity.
(B) REQUIRED CONSIDERATIONS- The recommendations under
subparagraph (A) shall take into account the need to provide advance
notice of required modifications to refinery and fuel distribution systems
in order to ensure an adequate supply of motor vehicle fuel in all
States.
(3) CONSULTATION- In developing the report, the Administrator of the
Environmental Protection Agency and the Secretary of Energy shall consult
with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and distributors;
and
SEC. 840. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING TO USE OF
RECYCLED PRODUCTS AND FLEET AND TRANSPORTATION EFFICIENCY.
Not later than 180 days after the date of enactment of this Act, the
Administrator of General Services shall submit to Congress a report that
details efforts by each Federal agency to implement the procurement policies
specified in Executive Order No. 13101 (63 Fed. Reg. 49643; relating to
governmental use of recycled products) and Executive Order No. 13149 (65 Fed.
Reg. 24607; relating to Federal fleet and transportation efficiency).
TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME
CONSUMERS
Subtitle A--Low Income Assistance and State Energy
Programs
SEC. 901. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION ASSISTANCE, AND
STATE ENERGY GRANTS.
(a) LIHEAP- (1) Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking the first
sentence and inserting the following: `There are authorized to be appropriated
to carry out the provisions of this title (other than section 2607A),
$3,400,000,000 for each of fiscal years 2003 through 2005.'.
(2) Section 2602(e) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621(e)) is amended by striking `$600,000,000' and inserting
`$1,000,000,000'.
(3) Section 2609A(a) of the Low-Income Energy Assistance Act of 1981
(42 U.S.C. 8628a(a)) is amended by striking `not more than $300,000' and
inserting: `not more than $750,000'.
(b) WEATHERIZATION ASSISTANCE- Section 422 of the Energy Conservation
and Production Act (42 U.S.C. 6872) is amended by striking `for fiscal years
1999 through 2003 such sums as may be necessary.' and inserting: `$325,000,000
for fiscal year 2003, $400,000,000 for fiscal year 2004, and $500,000,000 for
fiscal year 2005.'.
SEC. 902. STATE ENERGY PROGRAMS.
(a) STATE ENERGY CONSERVATION PLANS- Section 362 of the Energy Policy
and Conservation Act (42 U.S.C. 6322)) is amended by adding at the end the
following:
`(g) The Secretary shall, at least once every 3 years, invite the
Governor of each State to review and, if necessary, revise the energy
conservation plan of the State submitted under subsection (b) or (e). Such
reviews should consider the energy conservation plans of other States within
the region, and identify opportunities and actions that may be carried out in
pursuit of common energy conservation goals.'.
(b) STATE ENERGY CONSERVATION GOALS- Section 364 of the Energy Policy
and Conservation Act (42 U.S.C. 6324) is amended to read as follows:
`SEC. 364. Each State energy conservation plan with respect to which
assistance is made available under this part on or after the date of enactment
of the Energy Policy Act of 2002 shall contain a goal, consisting of an
improvement of 25 percent or more in the efficiency of use of energy in the
State concerned in calendar year 2010 as compared to calendar year 1990, and
may contain interim goals.'.
(c) STATE ENERGY CONSERVATION GRANTS- Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking `for
fiscal years 1999 through 2003 such sums as may be necessary.' and inserting:
`$100,000,000 for each of fiscal years 2003 and 2004; $125,000,000 for fiscal
year 2005; and such sums as may be necessary for each fiscal year
thereafter.'.
SEC. 903. ENERGY EFFICIENT SCHOOLS.
(a) ESTABLISHMENT- There is established in the Department of Energy
the High Performance Schools Program (in this section referred to as the
`Program').
(b) GRANTS- The Secretary of Energy may make grants to a State energy
office--
(1) to assist school districts in the State to improve the energy
efficiency of school buildings;
(2) to administer the Program; and
(3) to promote participation in the Program.
(c) GRANTS TO ASSIST SCHOOL DISTRICTS- The Secretary shall condition
grants under subsection (b)(1) on the State energy office using the grants to
assist school districts that have demonstrated--
(1) a need for the grants to build additional school buildings to
meet increasing elementary or secondary enrollments or to renovate existing
school buildings; and
(2) a commitment to use the grant funds to develop high performance
school buildings in accordance with a plan that the State energy office, in
consultation with the State educational agency, has determined is feasible
and appropriate to achieve the purposes for which the grant is
made.
(d) GRANTS FOR ADMINISTRATION- Grants under subsection (b)(2) shall be
used to--
(1) evaluate compliance by school districts with requirements of
this section;
(2) distribute information and materials to clearly define and
promote the development of high performance school buildings for both new
and existing facilities;
(3) organize and conduct programs for school board members, school
personnel, architects, engineers, and others to advance the concepts of high
performance school buildings;
(4) obtain technical services and assistance in planning and
designing high performance school buildings; or
(5) collect and monitor data and information pertaining to the high
performance school building projects.
(e) GRANTS TO PROMOTE PARTICIPATION- Grants under subsection (b)(3)
shall be used for promotional and marketing activities, including facilitating
private and public financing, promoting the use of energy savings performance
contracts, working with school administrations, students, and communities, and
coordinating public benefit programs.
(f) SUPPLEMENTING GRANT FUNDS- The State energy office shall encourage
qualifying school districts to supplement funds awarded pursuant to this
section with funds from other sources in the implementation of their
plans.
(g) ALLOCATIONS- Except as provided in subsection (h), funds
appropriated to carry out this section shall be allocated as follows:
(1) 70 percent shall be used to make grants under subsection
(b)(1).
(2) 15 percent shall be used to make grants under subsection
(b)(2).
(3) 15 percent shall be used to make grants under subsection
(b)(3).
(h) OTHER FUNDS- The Secretary of Energy may retain an amount, not to
exceed $300,000 per year, to assist State energy offices in coordinating and
implementing the Program. Such funds may be used to develop reference
materials to further define the principles and criteria to achieve high
performance school buildings.
(i) AUTHORIZATION OF APPROPRIATIONS- For grants under subsection (b)
there are authorized to be appropriated--
(1) $200,000,000 for fiscal year 2003;
(2) $210,000,000 for fiscal year 2004;
(3) $220,000,000 for fiscal year 2005;
(4) $230,000,000 for fiscal year 2006; and
(5) such sums as may be necessary for fiscal year 2007 and each
fiscal year thereafter through fiscal year 2012.
(j) DEFINITIONS- For purposes of this section:
(1) HIGH PERFORMANCE SCHOOL BUILDING- The term `high performance
school building' means a school building that, in its design, construction,
operation, and maintenance--
(A) maximizes use of renewable energy and energy-efficient
technologies and systems;
(B) is cost-effective on a life-cycle basis;
(i) the applicable Energy Star building energy performance
ratings; or
(ii) energy consumption levels at least 30 percent below those
of the most recent version of ASHRAE Standard 90.1;
(D) uses affordable, environmentally preferable, and durable
materials;
(E) enhances indoor environmental quality;
(F) protects and conserves water; and
(G) optimizes site potential.
(2) RENEWABLE ENERGY- The term `renewable energy' means energy
produced by solar, wind, biomass, ocean, geothermal, or hydroelectric
power.
(3) SCHOOL- The term `school' means--
(A) an `elementary school' as that term is defined in section
14101(14) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(14)),
(B) a `secondary school' as that term is defined in section
14101(25) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(25)), or
(C) an elementary or secondary Indian school funded by the Bureau
of Indian Affairs.
(4) STATE EDUCATIONAL AGENCY- The term `State educational agency'
has the same meaning given such term in section 14101(28) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801(28)).
(5) STATE ENERGY OFFICE- The term `State energy office' means the
State agency responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42 U.S.C.
6322), or, if no such agency exists, a State agency designated by the
Governor of the State.
SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.
(a) GRANTS- The Secretary of Energy is authorized to make grants to
units of local government, private, non-profit community development
organizations, and Indian tribe economic development entities to improve
energy efficiency, identify and develop alternative renewable and distributed
energy supplies, and increase energy conservation in low income rural and
urban communities.
(b) PURPOSE OF GRANTS- The Secretary may make grants on a competitive
basis for--
(1) investments that develop alternative renewable and distributed
energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy efficiency in
low income rural and urban communities;
(4) planning and development assistance for increasing the energy
efficiency of buildings and facilities; and
(5) technical and financial assistance to local government and
private entities on developing new renewable and distributed sources of
power or combined heat and power generation.
(c) DEFINITION- For purposes of this section, the term `Indian tribe'
means any Indian tribe, band, nation, or other organized group or community,
including any Alaskan Native village or regional or village corporation as
defined in or established pursuant to the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.), which is recognized as eligible for the special
programs and services provided by the United States to Indians because of
their status as Indians.
(d) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section
there are authorized to be appropriated to the Secretary of Energy an amount
not to exceed $20,000,000 for fiscal year 2003 and each fiscal year thereafter
through fiscal year 2005.
SEC. 905. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) DEFINITIONS- In this section:
(1) ELIGIBLE STATE- The term `eligible State' means a State that
meets the requirements of subsection (b).
(2) ENERGY STAR PROGRAM- The term `Energy Star program' means the
program established by section 324A of the Energy Policy and Conservation
Act.
(3) RESIDENTIAL ENERGY STAR PRODUCT- The term `residential Energy
Star product' means a product for a residence that is rated for energy
efficiency under the Energy Star program.
(4) STATE ENERGY OFFICE- The term `State energy office' means the
State agency responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42 U.S.C.
6322).
(5) STATE PROGRAM- The term `State program' means a State energy
efficient appliance rebate program described in subsection
(b)(1).
(b) ELIGIBLE STATES- A State shall be eligible to receive an
allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy efficient
appliance rebate program to provide rebates to residential consumers for the
purchase of residential Energy Star products to replace used appliances of
the same type;
(2) submits an application for the allocation at such time, in such
form, and containing such information as the Secretary may require;
and
(3) provides assurances satisfactory to the Secretary that the State
will use the allocation to supplement, but not supplant, funds made
available to carry out the State program.
(c) AMOUNT OF ALLOCATIONS-
(1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the
Secretary shall allocate to the State energy office of each eligible State
to carry out subsection (d) an amount equal to the product obtained by
multiplying the amount made available under subsection (e) for the fiscal
year by the ratio that the population of the State in the most recent
calendar year for which data are available bears to the total population of
all eligible States in that calendar year.
(2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated
under this subsection shall be adjusted proportionately so that no eligible
State is allocated a sum that is less than an amount determined by the
Secretary.
(d) USE OF ALLOCATED FUNDS- The allocation to a State energy office
under subsection (c) may be used to pay up to 50 percent of the cost of
establishing and carrying out a State program.
(e) ISSUANCE OF REBATES- Rebates may be provided to residential
consumers that meet the requirements of the State program. The amount of a
rebate shall be determined by the State energy office, taking into
consideration--
(1) the amount of the allocation to the State energy office under
subsection (c);
(2) the amount of any Federal or State tax incentive available for
the purchase of the residential Energy Star product; and
(3) the difference between the cost of the residential Energy Star
product and the cost of an appliance that is not a residential Energy Star
product, but is of the same type as, and is the nearest capacity,
performance, and other relevant characteristics (as determined by the State
energy office) to the residential Energy Star product.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to carry out this section such sums as are necessary for fiscal
year 2003 through fiscal year 2012.
Subtitle B--Federal Energy Efficiency
SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.
(a) ENERGY REDUCTION GOALS- Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended to read as
follows:
`(1) Subject to paragraph (2), each agency shall apply energy
conservation measures to, and shall improve the design for the construction
of, the Federal buildings of the agency (including each industrial or
laboratory facility) so that the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal years 2002 through 2011 is
reduced, as compared with the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal year 2000, by the percentage
specified in the following table:
`Fiscal Year
Percentage reduction
--2
--4
--6
--8
--10
--12
--14
--16
--18
--20.'.
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE REQUIREMENT- Section
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is
further amended by adding at the end the following:
`(3) Not later than December 31, 2010, the Secretary shall review
the results of the implementation of the energy performance requirement
established under paragraph (1) and submit to Congress recommendations
concerning energy performance requirements for calendar years 2012 through
2021.'.
(c) EXCLUSIONS- Section 543(c)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)(1)) is amended to read as follows:
`(1)(A) An agency may exclude, from the energy performance
requirement for a calendar year established under subsection (a) and the
energy management requirement established under subsection (b), any Federal
building or collection of Federal buildings, if the head of the agency finds
that--
`(i) compliance with those requirements would be
impracticable;
`(ii) the agency has completed and submitted all federally
required energy management reports;
`(iii) the agency has achieved compliance with the energy
efficiency requirements of this Act, the Energy Policy Act of 1992,
Executives Orders, and other Federal law; and
`(iv) the agency has implemented all practicable, life-cycle
cost-effective projects with respect to the Federal building or collection
of Federal buildings to be excluded.
`(B) A finding of impracticability under subparagraph (A)(i) shall
be based on--
`(i) the energy intensiveness of activities carried out in the
Federal building or collection of Federal buildings; or
`(ii) the fact that the Federal building or collection of Federal
buildings is used in the performance of a national security
function.'.
(d) REVIEW BY SECRETARY- Section 543(c)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
(1) by striking `impracticability standards' and inserting
`standards for exclusion'; and
(2) by striking `a finding of impracticability' and inserting `the
exclusion'.
(e) CRITERIA- Section 543(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end the
following:
`(3) Not later than 180 days after the date of enactment of this
paragraph, the Secretary shall issue guidelines that establish criteria for
exclusions under paragraph (1).'.
(f) REPORTS- Section 548(b) of the National Energy Conservation Policy
Act (42 U.S.C. 8258(b)) is amended--
(1) in the subsection heading, by inserting `THE PRESIDENT AND'
before `CONGRESS'; and
(2) by inserting `President and' before `Congress'.
(g) CONFORMING AMENDMENT- Section 550(d) of the National Energy
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second sentence
by striking `the 20 percent reduction goal established under section 543(a) of
the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).' and
inserting `each of the energy reduction goals established under section
543(a).'.
SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act (42 U.S.C.
8253) is further amended by adding at the end the following:
`(e) Metering of Energy Use-
`(1) DEADLINE- By October 1, 2004, all Federal buildings shall, for
the purposes of efficient use of energy and reduction in the cost of
electricity used in such buildings, be metered or submetered in accordance
with guidelines established by the Secretary under paragraph (2). Each
agency shall use, to the maximum extent practicable, advanced meters or
advanced metering devices that provide data at least daily and that measure
at least hourly consumption of electricity in the Federal buildings of the
agency. Such data shall be incorporated into existing Federal energy
tracking systems and made available to Federal facility energy
managers.
`(A) IN GENERAL- Not later than 180 days after the date of
enactment of this subsection, the Secretary, in consultation with the
Department of Defense, the General Services Administration and
representatives from the metering industry, utility industry, energy
services industry, energy efficiency indust