[DOCID: f:publ058.109]
[[Page 593]]
ENERGY POLICY ACT OF 2005
[[Page 119 STAT. 594]]
Public Law 109-58
109th Congress
An Act
.
To ensure jobs for our future with secure, affordable, and reliable
energy. <<NOTE: Aug. 8, 2005 - [H.R. 6]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in <<NOTE: Energy Policy Act of 2005. 42 USC
15801 note.>> Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Policy Act
of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.
Subtitle B--Energy Assistance and State Programs
Sec. 121. Low-income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.
Subtitle C--Energy Efficient Products
Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised
energy
conservation standards.
Subtitle D--Public Housing
Sec. 151. Public housing capital fund.
[[Page 119 STAT. 595]]
Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for
electric energy, useful heat, transportation fuels, and other
commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity
from renewable energy resources on public lands.
Subtitle B--Geothermal Energy
Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal
lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions,
rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal
years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.
Subtitle C--Hydroelectric
Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.
Subtitle D--Insular Energy
Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve
and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.
Subtitle B--Natural Gas
Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.
Subtitle C--Production
Sec. 321. Outer Continental Shelf provisions.
[[Page 119 STAT. 596]]
Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.
Subtitle D--Naval Petroleum Reserve
Sec. 331. Transfer of administrative jurisdiction and environmental
remediation, Naval Petroleum Reserve Numbered 2, Kern County,
California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered
2, to City of Taft, California.
Sec. 334. Revocation of land withdrawal.
Subtitle E--Production Incentives
Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in
Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide
injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.
Subtitle F--Access to Federal Lands
Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal
land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way
across public lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional
fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under
Padre Island National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.
Subtitle G--Miscellaneous
Sec. 381. Deadline for decision on appeals of consistency determination
under the Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental
Shelf Lands Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.
Subtitle H--Refinery Revitalization
Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.
[[Page 119 STAT. 597]]
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.
Subtitle B--Clean Power Projects
Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in
service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin
coal.
Subtitle C--Coal and Related Programs
Sec. 421. Amendment of the Energy Policy Act of 1992.
Subtitle D--Federal Coal Leases
Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation
and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to
bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.
TITLE V--INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project and electrification.
Sec. 506. Energy efficiency in federally assisted housing.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.
Subtitle B--General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship
program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal
retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor
terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power
plants.
Sec. 635. Prohibition on assumption by United States Government of
liability for certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other
arrangements.
[[Page 119 STAT. 598]]
Subtitle C--Next Generation Nuclear Plant Project
Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.
Subtitle D--Nuclear Security
Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle
purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization
initiative.
Sec. 707. Emergency exemption.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
Part 1--Hybrid Vehicles
Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.
Part 2--Advanced Vehicles
Sec. 721. Pilot program.
Sec. 722. Reports to Congress.
Sec. 723. Authorization of appropriations.
Part 3--Fuel Cell Buses
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C--Clean School Buses
Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.
Subtitle D--Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.
Subtitle E--Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and
enforcement of fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for
automobiles.
Sec. 774. Update testing procedures.
Subtitle F--Federal and State Procurement
Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and
hydrogen energy systems.
[[Page 119 STAT. 599]]
Sec. 783. Federal procurement of stationary, portable, and micro fuel
cells.
Subtitle G--Diesel Emissions Reduction
Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.
TITLE VIII--HYDROGEN
Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.
TITLE IX--RESEARCH AND DEVELOPMENT
Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.
Subtitle A--Energy Efficiency
Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.
Subtitle B--Distributed Energy and Electric Energy Systems
Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration programs.
Sec. 925. Electric transmission and distribution programs.
Subtitle C--Renewable Energy
Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle
propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.
Subtitle D--Agricultural Biomass Research and Development Programs
Sec. 941. Amendments to the Biomass Research and Development Act of
2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.
Subtitle E--Nuclear Energy
Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.
[[Page 119 STAT. 600]]
Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and
facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.
Subtitle F--Fossil Energy
Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.
Subtitle G--Science
Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.
Subtitle H--International Cooperation
Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.
Subtitle I--Research Administration and Operations
Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and
infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.
Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources
Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and
other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.
[[Page 119 STAT. 601]]
Sec. 1006. Improved coordination and management of civilian science and
technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and
technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.
TITLE XI--PERSONNEL AND TRAINING
Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Educational programs in science and mathematics.
Sec. 1103. Training guidelines for nonnuclear electric energy industry
personnel.
Sec. 1104. National Center for Energy Management and Building
Technologies.
Sec. 1105. Improved access to energy-related scientific and technical
careers.
Sec. 1106. National Power Plant Operations Technology and Educational
Center.
TITLE XII--ELECTRICITY
Sec. 1201. Short title.
Subtitle A--Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B--Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.
Subtitle C--Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific
Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity
mechanism.
Subtitle D--Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.
Subtitle E--Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale
requirements.
Sec. 1254. Interconnection.
Subtitle F--Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.
[[Page 119 STAT. 602]]
Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as
officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.
Subtitle H--Definitions
Sec. 1291. Definitions.
Subtitle I--Technical and Conforming Amendments
Sec. 1295. Conforming amendments.
Subtitle J--Economic Dispatch
Sec. 1298. Economic dispatch.
TITLE XIII--ENERGY POLICY TAX INCENTIVES
Sec. 1300. Short title; amendment to 1986 Code.
Subtitle A--Electricity Infrastructure
Sec. 1301. Extension and modification of renewable electricity
production credit.
Sec. 1302. Application of section 45 credit to agricultural
cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC
restructuring policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution
control facilities in connection with plants first placed in
service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning
costs.
Sec. 1311. Five-year net operating loss carryover for certain losses.
Subtitle B--Domestic Fossil Fuel Security
Sec. 1321. Extension of credit for producing fuel from a nonconventional
source for facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a
nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid
fuels.
Sec. 1324. Pass through to owners of deduction for capital costs
incurred by small refiner cooperatives in complying with
Environmental Protection Agency sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion
deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.
Subtitle C--Conservation and Energy Efficiency Provisions
Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and
stationary microturbine power plants.
Sec. 1337. Business solar investment tax credit.
Subtitle D--Alternative Motor Vehicles and Fuels Incentives
Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for
biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain
refueling property.
[[Page 119 STAT. 603]]
Subtitle E--Additional Energy Tax Incentives
Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.
Subtitle F--Revenue Raising Provisions
Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund
financing rate.
Sec. 1363. Modification of recapture rules for amortizable section 197
intangibles.
Sec. 1364. Clarification of tire excise tax.
TITLE XIV--MISCELLANEOUS
Subtitle A--In General
Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.
Subtitle B--Set America Free
Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel
additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and
cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived
ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.
Subtitle B--Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
Subtitle C--Boutique Fuels
Sec. 1541. Reducing the proliferation of boutique fuels.
TITLE XVI--CLIMATE CHANGE
Subtitle A--National Climate Change Technology Deployment
Sec. 1601. Greenhouse gas intensity reducing technology strategies.
[[Page 119 STAT. 604]]
Subtitle B--Climate Change Technology Deployment in Developing Countries
Sec. 1611. Climate change technology deployment in developing countries.
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.
TITLE XVIII--STUDIES
Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail
markets for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and
development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy
production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in
vehicle miles traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore
liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal
facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development
practices.
Sec. 1836. Resolution of Federal resource development conflicts in the
Powder River Basin.
Sec. 1837. National security review of international energy
requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential
hydropower facilities.
SEC. 2. <<NOTE: 42 USC 15801.>> DEFINITIONS.
Except as otherwise provided, in this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--
(A) In general.--The term ``institution of higher
education'' has the meaning given the term in section
101(a) of the Higher Education Act of 1065 (20 U.S.C.
1001(a)).
(B) Inclusion.--The term ``institution of higher
education'' includes an organization that--
[[Page 119 STAT. 605]]
(i) is organized, and at all times thereafter
operated, exclusively for the benefit of, to
perform the functions of, or to carry out the
functions of one or more organizations referred to
in subparagraph (A); and
(ii) is operated, supervised, or controlled by
or in connection with one or more of those
organizations.
(3) National laboratory.--The term ``National Laboratory''
means any of the following laboratories owned by the Department:
(A) Ames Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Accelerator Laboratory.
(E) Idaho National Laboratory.
(F) Lawrence Berkeley National Laboratory.
(G) Lawrence Livermore National Laboratory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Laboratory.
(J) National Renewable Energy Laboratory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Laboratory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Savannah River National Laboratory.
(P) Stanford Linear Accelerator Center.
(Q) Thomas Jefferson National Accelerator Facility.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.
(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by adding at
the end the following:
``SEC. 552. <<NOTE: 42 USC 8259a.>> ENERGY AND WATER SAVINGS MEASURES IN
CONGRESSIONAL BUILDINGS.
``(a) In General.--The Architect of the Capitol--
``(1) shall develop, update, and implement a cost-effective
energy conservation and management plan (referred to in this
section as the `plan') for all facilities administered by
Congress (referred to in this section as `congressional
buildings') to meet the energy performance requirements for
Federal buildings established under section 543(a)(1); and
``(2) <<NOTE: Deadline.>> shall submit the plan to Congress,
not later than 180 days after the date of enactment of this
section.
``(b) Plan Requirements.--The plan shall include--
[[Page 119 STAT. 606]]
``(1) a description of the life cycle cost analysis used to
determine the cost-effectiveness of proposed energy efficiency
projects;
``(2) a schedule of energy surveys to ensure complete
surveys of all congressional buildings every 5 years to
determine the cost and payback period of energy and water
conservation measures;
``(3) a strategy for installation of life cycle cost-
effective energy and water conservation measures;
``(4) the results of a study of the costs and benefits of
installation of submetering in congressional buildings; and
``(5) information packages and `how-to' guides for each
Member and employing authority of Congress that detail simple,
cost-effective methods to save energy and taxpayer dollars in
the workplace.
``(c) Annual Report.--The Architect of the Capitol shall submit to
Congress annually a report on congressional energy management and
conservation programs required under this section that describes in
detail--
``(1) energy expenditures and savings estimates for each
facility;
``(2) energy management and conservation projects; and
``(3) future priorities to ensure compliance with this
section.''.
(b) Table of Contents Amendment.--The table of contents of the
National Energy Conservation Policy Act is amended by adding at the end
of the items relating to part 3 of title V the following new item:
``Sec. 552. Energy and water savings measures in congressional
buildings.''.
(c) Repeal.--Section 310 of the Legislative Branch Appropriations
Act, 1999 (2 U.S.C. 1815), is repealed.
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Reduction Goals.--
(1) Amendment.--Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by
striking ``its Federal buildings so that'' and all that follows
through the end and inserting ``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 2006 through 2015 is
reduced, as compared with the energy consumption per gross
square foot of the Federal buildings of the agency in fiscal
year 2003, by the percentage specified in the following table:
``Fiscal Year Percentage reduction......................
2006........................................ 2
2007........................................ 4
2008........................................ 6
2009........................................ 8
2010........................................ 10
2011........................................ 12
2012........................................ 14
2013........................................ 16
2014........................................ 18
2015........................................ 20.''.
(2) Reporting baseline.--The <<NOTE: 42 USC 8253
note.>> energy reduction goals and baseline established in
paragraph (1) of section 543(a) of the
[[Page 119 STAT. 607]]
National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)),
as amended by this subsection, supersede all previous goals and
baselines under such paragraph, and related reporting
requirements.
(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) <<NOTE: Deadline.>> Not later than December 31, 2014, 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
fiscal years 2016 through 2025.''.
(c) Exclusions.--Section 543(c)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking
``An agency may exclude'' and all that follows through the end and
inserting ``(A) An agency may exclude, from the energy performance
requirement for a fiscal 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, Executive orders, and other Federal law; and
``(iv) the agency has implemented all practicable, life
cycle cost-effective projects with respect to the Federal
building or collection of Federal buildings to be excluded.
``(B) A finding of impracticability under subparagraph (A)(i) shall
be based on--
``(i) the energy intensiveness of activities carried out in
the Federal building or collection of Federal buildings; or
``(ii) the fact that the Federal building or collection of
Federal buildings is used in the performance of a national
security function.''.
(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'';
(2) by striking ``a finding of impracticability'' and
inserting ``the exclusion''; and
(3) by striking ``energy consumption requirements'' and
inserting ``requirements of subsections (a) and (b)(1)''.
(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) <<NOTE: Deadline. Guidelines.>> 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) Retention of Energy and Water Savings.--Section 546 of the
National Energy Conservation Policy Act (42 U.S.C. 8256) is amended by
adding at the end the following new subsection:
``(e) Retention of Energy and Water Savings.--An agency may retain
any funds appropriated to that agency for energy
[[Page 119 STAT. 608]]
expenditures, water expenditures, or wastewater treatment expenditures,
at buildings subject to the requirements of section 543(a) and (b), that
are not made because of energy savings or water savings. Except as
otherwise provided by law, such funds may be used only for energy
efficiency, water conservation, or unconventional and renewable energy
resources projects. Such projects shall be subject to the requirements
of section 3307 of title 40, United States Code.''.
(g) 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''.
(h) 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. 103. 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, 2012, in accordance with
guidelines established by the Secretary under paragraph (2), 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. 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 managers.
``(2) Guidelines.--
``(A) In general.--Not <<NOTE: Deadline.>> 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, representatives from the metering
industry, utility industry, energy services industry,
energy efficiency industry, energy efficiency advocacy
organizations, national laboratories, universities, and
Federal facility managers, shall establish guidelines
for agencies to carry out paragraph (1).
``(B) Requirements for guidelines.--The guidelines
shall--
``(i) take into consideration--
``(I) the cost of metering and the
reduced cost of operation and
maintenance expected to result from
metering;
``(II) the extent to which metering
is expected to result in increased
potential for energy management,
increased potential for energy savings
and energy efficiency improvement, and
cost and
[[Page 119 STAT. 609]]
energy savings due to utility contract
aggregation; and
``(III) the measurement and
verification protocols of the Department
of Energy;
``(ii) include recommendations concerning the
amount of funds and the number of trained
personnel necessary to gather and use the metering
information to track and reduce energy use;
``(iii) establish priorities for types and
locations of buildings to be metered based on
cost-effectiveness and a schedule of one or more
dates, not later than 1 year after the date of
issuance of the guidelines, on which the
requirements specified in paragraph (1) shall take
effect; and
``(iv) establish exclusions from the
requirements specified in paragraph (1) based on
the de minimis quantity of energy use of a Federal
building, industrial process, or structure.
``(3) Plan.--Not <<NOTE: Deadline.>> later than 6 months
after the date guidelines are established under paragraph (2),
in a report submitted by the agency under section 548(a), each
agency shall submit to the Secretary a plan describing how the
agency will implement the requirements of paragraph (1),
including (A) how the agency will designate personnel primarily
responsible for achieving the requirements and (B) demonstration
by the agency, complete with documentation, of any finding that
advanced meters or advanced metering devices, as defined in
paragraph (1), are not practicable.''.
SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Requirements.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended by section
101, is amended by adding at the end the following:
``SEC. 553. <<NOTE: 42 USC 8259b.>> FEDERAL PROCUREMENT OF ENERGY
EFFICIENT PRODUCTS.
``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' has the meaning given that
term in section 7902(a) of title 5, United States Code.
``(2) Energy star product.--The term `Energy Star product'
means a product that is rated for energy efficiency under an
Energy Star program.
``(3) Energy star program.--The term `Energy Star program'
means the program established by section 324A of the Energy
Policy and Conservation Act.
``(4) FEMP designated product.--The term `FEMP designated
product' means a product that is designated under the Federal
Energy Management Program of the Department of Energy as being
among the highest 25 percent of equivalent products for energy
efficiency.
``(5) Product.--The term `product' does not include any
energy consuming product or system designed or procured for
combat or combat-related missions.
``(b) Procurement of Energy Efficient Products.--
``(1) Requirement.--To meet the requirements of an agency
for an energy consuming product, the head of the agency shall,
except as provided in paragraph (2), procure--
``(A) an Energy Star product; or
[[Page 119 STAT. 610]]
``(B) a FEMP designated product.
``(2) Exceptions.--The head of an agency is not required to
procure an Energy Star product or FEMP designated product under
paragraph (1) if the head of the agency finds in writing that--
``(A) an Energy Star product or FEMP designated
product is not cost-effective over the life of the
product taking energy cost savings into account; or
``(B) no Energy Star product or FEMP designated
product is reasonably available that meets the
functional requirements of the agency.
``(3) Procurement planning.--The head of an agency shall
incorporate into the specifications for all procurements
involving energy consuming products and systems, including guide
specifications, project specifications, and construction,
renovation, and services contracts that include provision of
energy consuming products and systems, and into the factors for
the evaluation of offers received for the procurement, criteria
for energy efficiency that are consistent with the criteria used
for rating Energy Star products and for rating FEMP designated
products.
``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star products and FEMP designated products shall be clearly
identified and prominently displayed in any inventory or listing of
products by the General Services Administration or the Defense Logistics
Agency. The General Services Administration or the Defense Logistics
Agency shall supply only Energy Star products or FEMP designated
products for all product categories covered by the Energy Star program
or the Federal Energy Management Program, except in cases where the
agency ordering a product specifies in writing that no Energy Star
product or FEMP designated product is available to meet the buyer's
functional requirements, or that no Energy Star product or FEMP
designated product is cost-effective for the intended application over
the life of the product, taking energy cost savings into account.
``(d) Specific Products.--(1) In <<NOTE: Standards.>> the case of
electric motors of 1 to 500 horsepower, agencies shall select only
premium efficient motors that meet a standard designated by
the <<NOTE: Deadline.>> Secretary. The Secretary shall designate such a
standard not later than 120 days after the date of the enactment of this
section, after considering the recommendations of associated electric
motor manufacturers and energy efficiency groups.
``(2) All Federal agencies are encouraged to take actions to
maximize the efficiency of air conditioning and refrigeration equipment,
including appropriate cleaning and maintenance, including the use of any
system treatment or additive that will reduce the electricity consumed
by air conditioning and refrigeration equipment. Any such treatment or
additive must be--
``(A) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and refrigeration
equipment without having an adverse impact on air conditioning
performance (including cooling capacity) or equipment useful
life;
``(B) determined by the Administrator of the Environmental
Protection Agency to be environmentally safe; and
``(C) shown to increase seasonal energy efficiency ratio
(SEER) or energy efficiency ratio (EER) when tested by the
[[Page 119 STAT. 611]]
National Institute of Standards and Technology according to
Department of Energy test procedures without causing any adverse
impact on the system, system components, the refrigerant or
lubricant, or other materials in the system.
Results of <<NOTE: Federal Register, publication.>> testing
described in subparagraph (C) shall be published in the Federal
Register for public review and comment. For purposes of this
section, a hardware device or primary refrigerant shall not be
considered an additive.
``(e) Regulations.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall issue guidelines to carry
out this section.''.
(b) Conforming Amendment.--The table of contents of the National
Energy Conservation Policy Act is further amended by inserting after the
item relating to section 552 the following new item:
``Sec. 553. Federal procurement of energy efficient products.''.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Extension.--Section 801(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(c)) is amended by striking ``2006'' and
inserting ``2016''.
(b) Extension of Authority.--Any <<NOTE: 42 USC 8257 note.>> energy
savings performance contract entered into under section 801 of the
National Energy Conservation Policy Act (42 U.S.C. 8287) after October
1, 2003, and before the date of enactment of this Act, shall be
considered to have been entered into under that section.
SEC. 106. <<NOTE: 42 USC 15811.>> VOLUNTARY COMMITMENTS TO REDUCE
INDUSTRIAL ENERGY INTENSITY.
(a) Definition of Energy Intensity.--In this section, the term
``energy intensity'' means the primary energy consumed for each unit of
physical output in an industrial process.
(b) Voluntary Agreements.--The Secretary may enter into voluntary
agreements with one or more persons in industrial sectors that consume
significant quantities of primary energy for each unit of physical
output to reduce the energy intensity of the production activities of
the persons.
(c) Goal.--Voluntary agreements under this section shall have as a
goal the reduction of energy intensity by not less than 2.5 percent each
year during the period of calendar years 2007 through 2016.
(d) Recognition.--The Secretary, in cooperation with other
appropriate Federal agencies, shall develop mechanisms to recognize and
publicize the achievements of participants in voluntary agreements under
this section.
(e) Technical Assistance.--A person that enters into an agreement
under this section and continues to make a good faith effort to achieve
the energy efficiency goals specified in the agreement shall be eligible
to receive from the Secretary a grant or technical assistance, as
appropriate, to assist in the achievement of those goals.
(f) Report.--Not later than each of June 30, 2012, and June 30,
2017, the Secretary shall submit to Congress a report that--
(1) evaluates the success of the voluntary agreements under
this section; and
(2) provides independent verification of a sample of the
energy savings estimates provided by participating firms.
[[Page 119 STAT. 612]]
SEC. 107. <<NOTE: 42 USC 15812.>> ADVANCED BUILDING EFFICIENCY TESTBED.
(a) Establishment.--The Secretary, in consultation with the
Administrator of General Services, shall establish an Advanced Building
Efficiency Testbed program for the development, testing, and
demonstration of advanced engineering systems, components, and materials
to enable innovations in building technologies. The program shall
evaluate efficiency concepts for government and industry buildings, and
demonstrate the ability of next generation buildings to support
individual and organizational productivity and health (including by
improving indoor air quality) as well as flexibility and technological
change to improve environmental sustainability. Such program shall
complement and not duplicate existing national programs.
(b) Participants.--The program established under subsection (a)
shall be led by a university with the ability to combine the expertise
from numerous academic fields including, at a minimum, intelligent
workplaces and advanced building systems and engineering, electrical and
computer engineering, computer science, architecture, urban design, and
environmental and mechanical engineering. Such university shall partner
with other universities and entities who have established programs and
the capability of advancing innovative building efficiency technologies.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $6,000,000 for
each of the fiscal years 2006 through 2008, to remain available until
expended. For any fiscal year in which funds are expended under this
section, the Secretary shall provide one-third of the total amount to
the lead university described in subsection (b), and provide the
remaining two-thirds to the other participants referred to in subsection
(b) on an equal basis.
SEC. 108. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY
FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE.
(a) Amendment.--Subtitle F of the Solid Waste Disposal Act (42
U.S.C. 6961 et seq.) is amended by adding at the end the following:
``increased <<NOTE: 42 usc 6966.>> use of recovered mineral component in
federally funded projects involving procurement of cement or concrete
``Sec. 6005. (a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of any other Federal agency that, on
a regular basis, procures, or provides Federal funds to
pay or assist in paying the cost of procuring, material
for cement or concrete projects.
``(2) Cement or concrete project.--The term `cement or
concrete project' means a project for the construction or
maintenance of a highway or other transportation facility or a
Federal, State, or local government building or other public
facility that--
``(A) involves the procurement of cement or
concrete; and
``(B) is carried out, in whole or in part, using
Federal funds.
[[Page 119 STAT. 613]]
``(3) Recovered mineral component.--The term `recovered
mineral component' means--
``(A) ground granulated blast furnace slag,
excluding lead slag;
``(B) coal combustion fly ash; and
``(C) any other waste material or byproduct
recovered or diverted from solid waste that the
Administrator, in consultation with an agency head,
determines should be treated as recovered mineral
component under this section for use in cement or
concrete projects paid for, in whole or in part, by the
agency head.
``(b) Implementation of Requirements.--
``(1) In general.--Not <<NOTE: Deadline.>> later than 1 year
after the date of enactment of this section, the Administrator
and each agency head shall take such actions as are necessary to
implement fully all procurement requirements and incentives in
effect as of the date of enactment of this section (including
guidelines under section 6002) that provide for the use of
cement and concrete incorporating recovered mineral component in
cement or concrete projects.
``(2) Priority.--In carrying out paragraph (1), an agency
head shall give priority to achieving greater use of recovered
mineral component in cement or concrete projects for which
recovered mineral components historically have not been used or
have been used only minimally.
``(3) Federal procurement requirements.--The Administrator
and each agency head shall carry out this subsection in
accordance with section 6002.
``(c) Full Implementation Study.--
``(1) In general.--The Administrator, in cooperation with
the Secretary of Transportation and the Secretary of Energy,
shall conduct a study to determine the extent to which
procurement requirements, when fully implemented in accordance
with subsection (b), may realize energy savings and
environmental benefits attainable with substitution of recovered
mineral component in cement used in cement or concrete projects.
``(2) Matters to be addressed.--The study shall--
``(A) quantify--
``(i) the extent to which recovered mineral
components are being substituted for Portland
cement, particularly as a result of procurement
requirements; and
``(ii) the energy savings and environmental
benefits associated with the substitution;
``(B) identify all barriers in procurement
requirements to greater realization of energy savings
and environmental benefits, including barriers resulting
from exceptions from the law; and
``(C)(i) identify potential mechanisms to achieve
greater substitution of recovered mineral component in
types of cement or concrete projects for which recovered
mineral components historically have not been used or
have been used only minimally;
``(ii) evaluate the feasibility of establishing
guidelines or standards for optimized substitution rates
of recovered mineral component in those cement or
concrete projects; and
[[Page 119 STAT. 614]]
``(iii) identify any potential environmental or
economic effects that may result from greater
substitution of recovered mineral component in those
cement or concrete projects.
``(3) Report.--Not later than 30 months after the date of
enactment of this section, the Administrator shall submit to
Congress a report on the study.
``(d) Additional <<NOTE: Deadline.>> Procurement Requirements.--
Unless the study conducted under subsection (c) identifies any effects
or other problems described in subsection (c)(2)(C)(iii) that warrant
further review or delay, the Administrator and each agency head shall,
not later than 1 year after the date on which the report under
subsection (c)(3) is submitted, take additional actions under this Act
to establish procurement requirements and incentives that provide for
the use of cement and concrete with increased substitution of recovered
mineral component in the construction and maintenance of cement or
concrete projects--
``(1) to realize more fully the energy savings and
environmental benefits associated with increased substitution;
and
``(2) to eliminate barriers identified under subsection
(c)(2)(B).
``(e) Effect of Section.--Nothing in this section affects the
requirements of section 6002 (including the guidelines and
specifications for implementing those requirements).''.
(b) Conforming Amendment.--The table of contents of the Solid Waste
Disposal Act is amended by adding after the item relating to section
6004 the following:
``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.''.
SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.
Section 305(a) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)) is amended--
(1) in paragraph (2)(A), by striking ``CABO Model Energy
Code, 1992 (in the case of residential buildings) or ASHRAE
Standard 90.1-1989'' and inserting ``the 2004 International
Energy Conservation Code (in the case of residential buildings)
or ASHRAE Standard 90.1-2004''; and
(2) by adding at the end the following:
``(3)(A) <<NOTE: Deadline. Regulations.>> Not later than 1 year
after the date of enactment of this paragraph, the Secretary shall
establish, by rule, revised Federal building energy efficiency
performance standards that require that--
``(i) if life-cycle cost-effective for new Federal
buildings--
``(I) the buildings be designed to achieve energy
consumption levels that are at least 30 percent below
the levels established in the version of the ASHRAE
Standard or the International Energy Conservation Code,
as appropriate, that is in effect as of the date of
enactment of this paragraph; and
``(II) sustainable design principles are applied to
the siting, design, and construction of all new and
replacement buildings; and
``(ii) if water is used to achieve energy efficiency, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.
[[Page 119 STAT. 615]]
``(B) <<NOTE: Deadline.>> Not later than 1 year after the date of
approval of each subsequent revision of the ASHRAE Standard or the
International Energy Conservation Code, as appropriate, the Secretary
shall determine, based on the cost-effectiveness of the requirements
under the amendment, whether the revised standards established under
this paragraph should be updated to reflect the amendment.
``(C) In the budget request of the Federal agency for each fiscal
year and each report submitted by the Federal agency under section
548(a) of the National Energy Conservation Policy Act (42 U.S.C.
8258(a)), the head of each Federal agency shall include--
``(i) a list of all new Federal buildings owned, operated,
or controlled by the Federal agency; and
``(ii) a statement specifying whether the Federal buildings
meet or exceed the revised standards established under this
paragraph.''.
SEC. 110. DAYLIGHT SAVINGS.
(a) Amendment.--Section 3(a) of the Uniform Time Act of 1966 (15
U.S.C. 260a(a)) is amended--
(1) by striking ``first Sunday of April'' and inserting
``second Sunday of March''; and
(2) by striking ``last Sunday of October'' and inserting
``first Sunday of November''.
(b) Effective Date.--Subsection (a) <<NOTE: 15 USC 260a
note.>> shall take effect 1 year after the date of enactment of this Act
or March 1, 2007, whichever is later.
(c) Report to Congress.--Not <<NOTE: 15 USC 260a note.>> later than
9 months after the effective date stated in subsection (b), the
Secretary shall report to Congress on the impact of this section on
energy consumption in the United States.
(d) Right to Revert.--Congress retains the right to revert the
Daylight Saving Time back to the 2005 time schedules once the Department
study is complete.
SEC. 111. <<NOTE: 42 USC 15813.>> ENHANCING ENERGY EFFICIENCY IN
MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of the Congress that
Federal agencies should enhance the use of energy efficient technologies
in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent practicable, the
Secretary of the Interior, the Secretary of Commerce, and the Secretary
of Agriculture shall seek to incorporate energy efficient technologies
in public and administrative buildings associated with management of the
National Park System, National Wildlife Refuge System, National Forest
System, National Marine Sanctuaries System, and other public lands and
resources managed by the Secretaries.
(c) Energy Efficient Vehicles.--To the extent practicable, the
Secretary of the Interior, the Secretary of Commerce, and the Secretary
of Agriculture shall seek to use energy efficient motor vehicles,
including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System, National
Wildlife Refuge System, National Forest System, National Marine
Sanctuaries System, and other public lands and resources managed by the
Secretaries.
[[Page 119 STAT. 616]]
Subtitle B--Energy Assistance and State Programs
SEC. 121. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.
(a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended
by striking ``and $2,000,000,000 for each of fiscal years 2002 through
2004'' and inserting ``and $5,100,000,000 for each of fiscal years 2005
through 2007''.
(b) Renewable Fuels.--The Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) is amended by adding at the end the
following new section:
``renewable fuels
``Sec. 2612. <<NOTE: 42 USC 8630.>> In providing assistance pursuant
to this title, a State, or any other person with which the State makes
arrangements to carry out the purposes of this title, may purchase
renewable fuels, including biomass.''.
(c) Report to Congress.--The <<NOTE: 42 USC 8630 note.>> Secretary
shall report to Congress on the use of renewable fuels in providing
assistance under the Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.).
SEC. 122. WEATHERIZATION ASSISTANCE.
(a) Authorization of Appropriations.--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 ``$500,000,000 for fiscal year 2006, $600,000,000 for fiscal
year 2007, and $700,000,000 for fiscal year 2008''.
(b) Eligibility.--Section 412(7) of the Energy Conservation and
Production Act (42 U.S.C. 6862(7)) is amended by striking ``125
percent'' both places it appears and inserting ``150 percent''.
SEC. 123. STATE ENERGY PROGRAMS.
(a) State Energy Conservation Plans.--Section 362 of the Energy
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at
the end the following new subsection:
``(g) The Secretary shall, at least once every 3 years, invite the
Governor of each State to review and, if necessary, revise the energy
conservation plan of such State submitted under subsection (b) or (e).
Such reviews should consider the energy conservation plans of other
States within the region, and identify opportunities and actions carried
out in pursuit of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the Energy Policy
and Conservation Act (42 U.S.C. 6324) is amended to read as follows:
``state energy efficiency goals
``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 2005 shall contain a goal,
consisting of an improvement of 25 percent or more in the efficiency of
use of energy in the State concerned
[[Page 119 STAT. 617]]
in calendar year 2012 as compared to calendar year 1990, and may contain
interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking
``for fiscal years 1999 through 2003 such sums as may be necessary'' and
inserting ``$100,000,000 for each of the fiscal years 2006 and 2007 and
$125,000,000 for fiscal year 2008''.
SEC. 124. <<NOTE: 42 USC 15821.>> 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 (f) 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.
[[Page 119 STAT. 618]]
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 the Secretary to carry out this section $50,000,000 for
each of the fiscal years 2006 through 2010.
SEC. 125. <<NOTE: 42 USC 15822.>> ENERGY EFFICIENT PUBLIC BUILDINGS.
(a) Grants.--The Secretary may make grants to 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, to assist units of local government in the State in improving the
energy efficiency of public buildings and facilities--
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a
comparable public building constructed in compliance with
standards prescribed in the most recent version of the
International Energy Conservation Code, or a similar State code
intended to achieve substantially equivalent efficiency levels;
or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior to
renovation, assuming a 3-year, weather-normalized average for
calculating such baseline.
(b) Administration.--State energy offices receiving grants under
this section shall--
(1) <<NOTE: Records.>> maintain such records and evidence of
compliance as the Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance to
encourage planning, financing, and design of energy efficient
public buildings by units of local government.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary
$30,000,000 for each of fiscal years 2006 through 2010. Not more than 10
percent of appropriated funds shall be used for administration.
SEC. 126. <<NOTE: 42 USC 15823.>> LOW INCOME COMMUNITY ENERGY EFFICIENCY
PILOT PROGRAM.
(a) Grants.--The Secretary 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.
[[Page 119 STAT. 619]]
(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.), that 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
$20,000,000 for each of fiscal years 2006 through 2008.
SEC. 127. <<NOTE: 42 USC 15824.>> STATE TECHNOLOGIES ADVANCEMENT
COLLABORATIVE.
(a) In General.--The Secretary, in cooperation with the States,
shall establish a cooperative program for research, development,
demonstration, and deployment of technologies in which there is a common
Federal and State energy efficiency, renewable energy, and fossil energy
interest, to be known as the ``State Technologies Advancement
Collaborative'' (referred to in this section as the ``Collaborative'').
(b) Duties.--The Collaborative shall--
(1) leverage Federal and State funding through cost-shared
activity;
(2) reduce redundancies in Federal and State funding; and
(3) create multistate projects to be awarded through a
competitive process.
(c) Administration.--The Collaborative shall be administered through
an agreement between the Department and appropriate State-based
organizations.
(d) Funding Sources.--Funding for the Collaborative may be provided
from--
(1) amounts specifically appropriated for the Collaborative;
or
(2) amounts that may be allocated from other appropriations
without changing the purpose for which the amounts are
appropriated.
(e) Authorization of Appropriations.--There are authorized to carry
out this section such sums as are necessary for each of fiscal years
2006 through 2010.
SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.
Section 304(e) of the Energy Conservation and Production Act (42
U.S.C. 6833(e)) is amended--
[[Page 119 STAT. 620]]
(1) in paragraph (1), by inserting before the period at the
end of the first sentence the following: ``, including
increasing and verifying compliance with such codes''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Additional funding shall be provided under this subsection for
implementation of a plan to achieve and document at least a 90 percent
rate of compliance with residential and commercial building energy
efficiency codes, based on energy performance--
``(A) to a State that has adopted and is implementing, on a
statewide basis--
``(i) a residential building energy efficiency code
that meets or exceeds the requirements of the 2004
International Energy Conservation Code, or any
succeeding version of that code that has received an
affirmative determination from the Secretary under
subsection (a)(5)(A); and
``(ii) a commercial building energy efficiency code
that meets or exceeds the requirements of the ASHRAE
Standard 90.1-2004, or any succeeding version of that
standard that has received an affirmative determination
from the Secretary under subsection (b)(2)(A); or
``(B) in a State in which there is no statewide energy code
either for residential buildings or for commercial buildings, to
a local government that has adopted and is implementing
residential and commercial building energy efficiency codes, as
described in subparagraph (A).
``(3) Of the amounts made available under this subsection, the
Secretary may use $500,000 for each fiscal year to train State and local
officials to implement codes described in paragraph (2).
``(4)(A) <<NOTE: Appropriation authorization.>> There are authorized
to be appropriated to carry out this subsection--
``(i) $25,000,000 for each of fiscal years 2006 through
2010; and
``(ii) such sums as are necessary for fiscal year 2011 and
each fiscal year thereafter.
``(B) Funding provided to States under paragraph (2) for each fiscal
year shall not exceed one-half of the excess of funding under this
subsection over $5,000,000 for the fiscal year.''.
Subtitle C--Energy Efficient Products
SEC. 131. ENERGY STAR PROGRAM.
(a) In General.--The Energy Policy and Conservation Act is amended
by inserting after section 324 (42 U.S.C. 6294) the following:
``energy star program
``Sec. 324A. (a) In General.--There is <<NOTE: 42 USC
6294a.>> established within the Department of Energy and the
Environmental Protection Agency a voluntary program to identify and
promote energy-efficient products and buildings in order to reduce
energy consumption, improve energy security, and reduce pollution
through voluntary labeling of, or other forms of communication about,
products and buildings that meet the highest energy conservation
standards.
``(b) Division of Responsibilities.--Responsibilities under the
program shall be divided between the Department of Energy and
[[Page 119 STAT. 621]]
the Environmental Protection Agency in accordance with the terms of
applicable agreements between those agencies.
``(c) Duties.--The Administrator and the Secretary shall--
``(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for--
``(A) achieving energy efficiency; and
``(B) reducing pollution;
``(2) work to enhance public awareness of the Energy Star
label, including by providing special outreach to small
businesses;
``(3) preserve the integrity of the Energy Star label;
``(4) regularly update Energy Star product criteria for
product categories;
``(5) solicit comments from interested parties prior to
establishing or revising an Energy Star product category,
specification, or criterion (or prior to effective dates for any
such product category, specification, or criterion);
``(6) on adoption of a new or revised product category,
specification, or criterion, provide reasonable notice to
interested parties of any changes (including effective dates) in
product categories, specifications, or criteria, along with--
``(A) an explanation of the changes; and
``(B) as appropriate, responses to comments
submitted by interested parties; and
``(7) provide appropriate lead time (which shall be 270
days, unless the Agency or Department specifies otherwise) prior
to the applicable effective date for a new or a significant
revision to a product category, specification, or criterion,
taking into account the timing requirements of the
manufacturing, product marketing, and distribution process for
the specific product addressed.
``(d) Deadlines.--The Secretary shall establish new qualifying
levels--
``(1) not later than January 1, 2006, for clothes washers
and dishwashers, effective beginning January 1, 2007; and
``(2) not later than January 1, 2008, for clothes washers,
effective beginning January 1, 2010.''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by
inserting after the item relating to section 324 the following:
``Sec. 324A. Energy Star program.''.
SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.
Section 337 of the Energy Policy and Conservation Act (42 U.S.C.
6307) is amended by adding at the end the following:
``(c) HVAC Maintenance.--(1) <<NOTE: Deadline.>> To ensure that
installed air conditioning and heating systems operate at maximum rated
efficiency levels, the Secretary shall, not later than 180 days after
the date of enactment of this subsection, carry out a program to educate
homeowners and small business owners concerning the energy savings from
properly conducted maintenance of air conditioning, heating, and
ventilating systems.
``(2) The Secretary shall carry out the program under paragraph (1),
on a cost-shared basis, in cooperation with the Administrator of the
Environmental Protection Agency and any other entities that the
Secretary determines to be appropriate, including industry
[[Page 119 STAT. 622]]
trade associations, industry members, and energy efficiency
organizations.
``(d) Small Business Education and Assistance.--(1) The
Administrator of the Small Business Administration, in consultation with
the Secretary and the Administrator of the Environmental Protection
Agency, shall develop and coordinate a Government-wide program, building
on the Energy Star for Small Business Program, to assist small
businesses in--
``(A) becoming more energy efficient;
``(B) understanding the cost savings from improved energy
efficiency;
``(C) understanding and accessing Federal procurement
opportunities with regard to Energy Star technologies and
products; and
``(D) identifying financing options for energy efficiency
upgrades.
``(2) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall--
``(A) make program information available to small business
concerns directly through the district offices and resource
partners of the Small Business Administration, including small
business development centers, women's business centers, and the
Service Corps of Retired Executives (SCORE), and through other
Federal agencies, including the Federal Emergency Management
Agency and the Department of Agriculture; and
``(B) coordinate assistance with the Secretary of Commerce
for manufacturing-related efforts, including the Manufacturing
Extension Partnership Program.
``(3) The Secretary, on a cost shared basis in cooperation with the
Administrator of the Environmental Protection Agency, shall provide to
the Small Business Administration all advertising, marketing, and other
written materials necessary for the dissemination of information under
paragraph (2).
``(4) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration, as part of the outreach to small business concerns under
the Energy Star Program for Small Business Program, may enter into
cooperative agreements with qualified resources partners (including the
National Center for Appropriate Technology) to establish, maintain, and
promote a Small Business Energy Clearinghouse (in this subsection
referred to as the `Clearinghouse').
``(5) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall ensure that the Clearinghouse provides a
centralized resource where small business concerns may access,
telephonically and electronically, technical information and advice to
help increase energy efficiency and reduce energy costs.
``(6) <<NOTE: Appropriation authorization.>> There are authorized to
be appropriated such sums as are necessary to carry out this subsection,
to remain available until expended.''.
SEC. 133. <<NOTE: 42 USC 15831.>> PUBLIC ENERGY EDUCATION PROGRAM.
(a) In General.--Not <<NOTE: Deadline.>> later than 180 days after
the date of enactment of this Act, the Secretary shall convene an
organizational conference for the purpose of establishing an ongoing,
self-sustaining national public energy education program.
[[Page 119 STAT. 623]]
(b) Participants.--The Secretary shall invite to participate in the
conference individuals and entities representing all aspects of energy
production and distribution, including--
(1) industrial firms;
(2) professional societies;
(3) educational organizations;
(4) trade associations; and
(5) governmental agencies.
(c) Purpose, Scope, and Structure.--
(1) Purpose.--The purpose of the conference shall be to
establish an ongoing, self-sustaining national public energy
education program to examine and recognize interrelationships
between energy sources in all forms, including--
(A) conservation and energy efficiency;
(B) the role of energy use in the economy; and
(C) the impact of energy use on the environment.
(2) Scope and structure.--Taking into consideration the
purpose described in paragraph (1), the participants in the
conference invited under subsection (b) shall design the scope
and structure of the program described in subsection (a).
(d) Technical Assistance.--The Secretary shall provide technical
assistance and other guidance necessary to carry out the program
described in subsection (a).
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 134. <<NOTE: 42 USC 15832.>> ENERGY EFFICIENCY PUBLIC INFORMATION
INITIATIVE.
(a) In General.--The Secretary shall carry out a comprehensive
national program, including advertising and media awareness, to inform
consumers about--
(1) the need to reduce energy consumption during the 4-year
period beginning on the date of enactment of this Act;
(2) the benefits to consumers of reducing consumption of
electricity, natural gas, and petroleum, particularly during
peak use periods;
(3) the importance of low energy costs to economic growth
and preserving manufacturing jobs in the United States; and
(4) practical, cost-effective measures that consumers can
take to reduce consumption of electricity, natural gas, and
gasoline, including--
(A) maintaining and repairing heating and cooling
ducts and equipment;
(B) weatherizing homes and buildings;
(C) purchasing energy efficient products; and
(D) proper tire maintenance.
(b) Cooperation.--The program carried out under subsection (a)
shall--
(1) include collaborative efforts with State and local
government officials and the private sector; and
(2) incorporate, to the maximum extent practicable,
successful State and local public education programs.
(c) Report.--Not later than July 1, 2009, the Secretary shall submit
to Congress a report describing the effectiveness of the program under
this section.
(d) Termination of Authority.--The program carried out under this
section shall terminate on December 31, 2010.
[[Page 119 STAT. 624]]
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $90,000,000 for each of fiscal
years 2006 through 2010.
SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) is amended--
(1) in paragraph (29)--
(A) in subparagraph (D)--
(i) in clause (i), by striking ``C78.1-
1978(R1984)'' and inserting ``C78.81-2003 (Data
Sheet 7881-ANSI-1010-1)'';
(ii) in clause (ii), by striking ``C78.1-
1978(R1984)'' and inserting ``C78.81-2003 (Data
Sheet 7881-ANSI-3007-1)''; and
(iii) in clause (iii), by striking ``C78.1-
1978(R1984)'' and inserting ``C78.81-2003 (Data
Sheet 7881-ANSI-1019-1)''; and
(B) by adding at the end the following:
``(M) The term `F34T12 lamp' (also known as a `F40T12/ES
lamp') means a nominal 34 watt tubular fluorescent lamp that is
48 inches in length and 1\1/2\ inches in diameter, and conforms
to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
``(N) The term `F96T12/ES lamp' means a nominal 60 watt
tubular fluorescent lamp that is 96 inches in length and 1\1/2\
inches in diameter, and conforms to ANSI standard C78.81-2003
(Data Sheet 7881-ANSI-3006-1).
``(O) The term `F96T12HO/ES lamp' means a nominal 95 watt
tubular fluorescent lamp that is 96 inches in length and 1\1/2\
inches in diameter, and conforms to ANSI standard C78.81-2003
(Data Sheet 7881-ANSI-1017-1).
``(P) The term `replacement ballast' means a ballast that--
``(i) is designed for use to replace an existing
ballast in a previously installed luminaire;
``(ii) is marked `FOR REPLACEMENT USE ONLY';
``(iii) is shipped by the manufacturer in packages
containing not more than 10 ballasts; and
``(iv) has output leads that when fully extended are
a total length that is less than the length of the lamp
with which the ballast is intended to be operated.'';
(2) in paragraph (30)(S)--
(A) by inserting ``(i)'' before ``The term''; and
(B) by adding at the end the following:
``(ii) The term `medium base compact fluorescent
lamp' does not include--
``(I) any lamp that is--
``(aa) specifically designed to be
used for special purpose applications;
and
``(bb) unlikely to be used in
general purpose applications, such as
the applications described in
subparagraph (D); or
``(II) any lamp not described in subparagraph
(D) that is excluded by the Secretary, by rule,
because the lamp is--
``(aa) designed for special
applications; and
[[Page 119 STAT. 625]]
``(bb) unlikely to be used in
general purpose applications.''; and
(3) by adding at the end the following:
``(32) The term `battery charger' means a device that
charges batteries for consumer products, including battery
chargers embedded in other consumer products.
``(33)(A) The term `commercial prerinse spray valve' means a
handheld device designed and marketed for use with commercial
dishwashing and ware washing equipment that sprays water on
dishes, flatware, and other food service items for the purpose
of removing food residue before cleaning the items.
``(B) The Secretary may modify the definition of `commercial
prerinse spray valve' by rule--
``(i) to include products--
``(I) that are extensively used in conjunction
with commercial dishwashing and ware washing
equipment;
``(II) the application of standards to which
would result in significant energy savings; and
``(III) the application of standards to which
would meet the criteria specified in section
325(o)(4); and
``(ii) to exclude products--
``(I) that are used for special food service
applications;
``(II) that are unlikely to be widely used in
conjunction with commercial dishwashing and ware
washing equipment; and
``(III) the application of standards to which
would not result in significant energy savings.
``(34) The term `dehumidifier' means a self-contained,
electrically operated, and mechanically encased assembly
consisting of--
``(A) a refrigerated surface (evaporator) that
condenses moisture from the atmosphere;
``(B) a refrigerating system, including an electric
motor;
``(C) an air-circulating fan; and
``(D) means for collecting or disposing of the
condensate.
``(35)(A) The term `distribution transformer' means a
transformer that--
``(i) has an input voltage of 34.5 kilovolts or
less;
``(ii) has an output voltage of 600 volts or less;
and
``(iii) is rated for operation at a frequency of 60
Hertz.
``(B) The term `distribution transformer' does not include--
``(i) a transformer with multiple voltage taps, the
highest of which equals at least 20 percent more than
the lowest;
``(ii) a transformer that is designed to be used in
a special purpose application and is unlikely to be used
in general purpose applications, such as a drive
transformer, rectifier transformer, auto-transformer,
Uninterruptible Power System transformer, impedance
transformer, regulating transformer, sealed and
nonventilating transformer, machine tool transformer,
welding transformer, grounding transformer, or testing
transformer; or
``(iii) any transformer not listed in clause (ii)
that is excluded by the Secretary by rule because--
``(I) the transformer is designed for a
special application;
[[Page 119 STAT. 626]]
``(II) the transformer is unlikely to be used
in general purpose applications; and
``(III) the application of standards to the
transformer would not result in significant energy
savings.
``(36) The term `external power supply' means an external
power supply circuit that is used to convert household electric
current into DC current or lower-voltage AC current to operate a
consumer product.
``(37) The term `illuminated exit sign' means a sign that--
``(A) is designed to be permanently fixed in place
to identify an exit; and
``(B) consists of an electrically powered integral
light source that--
``(i) illuminates the legend `EXIT' and any
directional indicators; and
``(ii) provides contrast between the legend,
any directional indicators, and the background.
``(38) The term `low-voltage dry-type distribution
transformer' means a distribution transformer that--
``(A) has an input voltage of 600 volts or less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(39) The term `pedestrian module' means a light signal
used to convey movement information to pedestrians.
``(40) The term `refrigerated bottled or canned beverage
vending machine' means a commercial refrigerator that cools
bottled or canned beverages and dispenses the bottled or canned
beverages on payment.
``(41) The term `standby mode' means the lowest power
consumption mode, as established on an individual product basis
by the Secretary, that--
``(A) cannot be switched off or influenced by the
user; and
``(B) may persist for an indefinite time when an
appliance is--
``(i) connected to the main electricity
supply; and
``(ii) used in accordance with the
instructions of the manufacturer.
``(42) The term `torchiere' means a portable electric lamp
with a reflector bowl that directs light upward to give indirect
illumination.
``(43) The term `traffic signal module' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication that--
``(A) consists of a light source, a lens, and all
other parts necessary for operation; and
``(B) communicates movement messages to drivers
through red, amber, and green colors.
``(44) The term `transformer' means a device consisting of 2
or more coils of insulated wire that transfers alternating
current by electromagnetic induction from 1 coil to another to
change the original voltage or current value.
``(45)(A) The term `unit heater' means a self-contained fan-
type heater designed to be installed within the heated space.
``(B) The term `unit heater' does not include a warm air
furnace.
[[Page 119 STAT. 627]]
``(46)(A) The term `high intensity discharge lamp' means an
electric-discharge lamp in which--
``(i) the light-producing arc is stabilized by bulb
wall temperature; and
``(ii) the arc tube has a bulb wall loading in
excess of 3 Watts/cm<SUP>2</SUP>.
``(B) The term `high intensity discharge lamp' includes
mercury vapor, metal halide, and high-pressure sodium lamps
described in subparagraph (A).
``(47)(A) The term `mercury vapor lamp' means a high
intensity discharge lamp in which the major portion of the light
is produced by radiation from mercury operating at a partial
pressure in excess of 100,000 Pa (approximately 1 atm).
``(B) The term `mercury vapor lamp' includes clear,
phosphor-coated, and self-ballasted lamps described in
subparagraph (A).
``(48) The term `mercury vapor lamp ballast' means a device
that is designed and marketed to start and operate mercury vapor
lamps by providing the necessary voltage and current.
``(49) The term `ceiling fan' means a nonportable device
that is suspended from a ceiling for circulating air via the
rotation of fan blades.
``(50) The term `ceiling fan light kit' means equipment
designed to provide light from a ceiling fan that can be--
``(A) integral, such that the equipment is attached
to the ceiling fan prior to the time of retail sale; or
``(B) attachable, such that at the time of retail
sale the equipment is not physically attached to the
ceiling fan, but may be included inside the ceiling fan
at the time of sale or sold separately for subsequent
attachment to the fan.
``(51) The term `medium screw base' means an Edison screw
base identified with the prefix E-26 in the `American National
Standard for Electric Lamp Bases', ANSI/IEC C81.61-2003,
published by the American National Standards Institute.''.
(b) Test Procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(1) in subsection (b), by adding at the end the following:
``(9) Test procedures for illuminated exit signs shall be based on
the test method used under version 2.0 of the Energy Star program of the
Environmental Protection Agency for illuminated exit signs.
``(10)(A) Test procedures for distribution transformers and low
voltage dry-type distribution transformers shall be based on the
`Standard Test Method for Measuring the Energy Consumption of
Distribution Transformers' prescribed by the National Electrical
Manufacturers Association (NEMA TP 2-1998).
``(B) The Secretary may review and revise the test procedures
established under subparagraph (A).
``(C) For purposes of section 346(a), the test procedures
established under subparagraph (A) shall be considered to be the testing
requirements prescribed by the Secretary under section 346(a)(1) for
distribution transformers for which the Secretary makes a determination
that energy conservation standards would--
``(i) be technologically feasible and economically
justified; and
``(ii) result in significant energy savings.
[[Page 119 STAT. 628]]
``(11) Test procedures for traffic signal modules and pedestrian
modules shall be based on the test method used under the Energy Star
program of the Environmental Protection Agency for traffic signal
modules, as in effect on the date of enactment of this paragraph.
``(12)(A) Test procedures for medium base compact fluorescent lamps
shall be based on the test methods for compact fluorescent lamps used
under the August 9, 2001, version of the Energy Star program of the
Environmental Protection Agency and the Department of Energy.
``(B) Except as provided in subparagraph (C), medium base compact
fluorescent lamps shall meet all test requirements for regulated
parameters of section 325(cc).
``(C) Notwithstanding subparagraph (B), if manufacturers document
engineering predictions and analysis that support expected attainment of
lumen maintenance at 40 percent rated life and lamp lifetime, medium
base compact fluorescent lamps may be marketed before completion of the
testing of lamp life and lumen maintenance at 40 percent of rated life.
``(13) Test procedures for dehumidifiers shall be based on the test
criteria used under the Energy Star Program Requirements for
Dehumidifiers developed by the Environmental Protection Agency, as in
effect on the date of enactment of this paragraph unless revised by the
Secretary pursuant to this section.
``(14) The test procedure for measuring flow rate for commercial
prerinse spray valves shall be based on American Society for Testing and
Materials Standard F2324, entitled `Standard Test Method for Pre-Rinse
Spray Valves'.
``(15) The test procedure for refrigerated bottled or canned
beverage vending machines shall be based on American National Standards
Institute/American Society of Heating, Refrigerating and Air-
Conditioning Engineers Standard 32.1-2004, entitled `Methods of Testing
for Rating Vending Machines for Bottled, Canned or Other Sealed
Beverages'.
``(16)(A)(i) Test procedures for ceiling fans shall be based on the
`Energy Star Testing Facility Guidance Manual: Building a Testing
Facility and Performing the Solid State Test Method for ENERGY STAR
Qualified Ceiling Fans, Version 1.1' published by the Environmental
Protection Agency.
``(ii) Test procedures for ceiling fan light kits shall be based on
the test procedures referenced in the Energy Star specifications for
Residential Light Fixtures and Compact Fluorescent Light Bulbs, as in
effect on the date of enactment of this paragraph.
``(B) The Secretary may review and revise the test procedures
established under subparagraph (A).''; and
(2) by adding at the end the following:
``(f) Additional <<NOTE: Deadline. Requirements.>> Consumer and
Commercial Products.--(1) Not later than 2 years after the date of
enactment of this subsection, the Secretary shall prescribe testing
requirements for refrigerated bottled or canned beverage vending
machines.
``(2) To the maximum extent practicable, the testing requirements
prescribed under paragraph (1) shall be based on existing test
procedures used in industry.''.
(c) Standard Setting Authority.--Section 325 of the Energy Policy
and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (f)(3), by adding at the end the
following:
[[Page 119 STAT. 629]]
``(D) Notwithstanding any other provision of this Act, if the
requirements of subsection (o) are met, the Secretary may consider and
prescribe energy conservation standards or energy use standards for
electricity used for purposes of circulating air through duct work.'';
(2) in subsection (g)--
(A) in paragraph (6)(B), by inserting ``and
labeled'' after ``designed''; and
(B) by adding at the end the following:
``(8)(A) Each fluorescent lamp ballast (other than replacement
ballasts or ballasts described in subparagraph (C))--
``(i)(I) manufactured on or after July 1, 2009;
``(II) sold by the manufacturer on or after October 1, 2009;
or
``(III) incorporated into a luminaire by a luminaire
manufacturer on or after July 1, 2010; and
``(ii) designed--
``(I) to operate at nominal input voltages of 120 or
277 volts;
``(II) to operate with an input current frequency of
60 Hertz; and
``(III) for use in connection with F34T12 lamps,
F96T12/ES lamps, or F96T12HO/ES lamps;
shall have a power factor of 0.90 or greater and shall have a
ballast efficacy factor of not less than the following:
................... Total .....................
``Applica Ballast nominal Ballast
tion for input lamp efficacy
operatio voltage watts factor
n of
One 120/277 34 2.61
F34T12
lamp
Two 120/277 68 1.35
F34T12
lamps
Two 120/277 120 0.77
F96T12/
ES lamps
Two 120/277 190 0.42.
F96T12HO/
ES lamps
``(B) <<NOTE: Applicability.>> The standards described in
subparagraph (A) shall apply to all ballasts covered by subparagraph
(A)(ii) that are manufactured on or after July 1, 2010, or sold by the
manufacturer on or after October 1, 2010.
``(C) The standards described in subparagraph (A) do not apply to--
``(i) a ballast that is designed for dimming to 50 percent
or less of the maximum output of the ballast;
``(ii) a ballast that is designed for use with 2 F96T12HO
lamps at ambient temperatures of 20F or less and for use in an
outdoor sign; or
``(iii) a ballast that has a power factor of less than 0.90
and is designed and labeled for use only in residential
applications.'';
(3) in subsection (o), by adding at the end the following:
``(5) The Secretary may set more than 1 energy conservation standard
for products that serve more than 1 major function by setting 1 energy
conservation standard for each major function.''; and
(4) by adding at the end the following:
``(u) Battery <<NOTE: Deadline. Notice. Regulations.>> Charger and
External Power Supply Electric Energy Consumption.--(1)(A) Not later
than 18 months after the date of enactment of this subsection, the
Secretary shall, after providing notice and an opportunity for comment,
prescribe, by
[[Page 119 STAT. 630]]
rule, definitions and test procedures for the power use of battery
chargers and external power supplies.
``(B) In establishing the test procedures under subparagraph (A),
the Secretary shall--
``(i) consider existing definitions and test procedures used
for measuring energy consumption in standby mode and other
modes; and
``(ii) assess the current and projected future market for
battery chargers and external power supplies.
``(C) The assessment under subparagraph (B)(ii) shall include--
``(i) estimates of the significance of potential energy
savings from technical improvements to battery chargers and
external power supplies; and
``(ii) suggested product classes for energy conservation
standards.
``(D) <<NOTE: Deadline.>> Not later than 18 months after the date of
enactment of this subsection, the Secretary shall hold a scoping
workshop to discuss and receive comments on plans for developing energy
conservation standards for energy use for battery chargers and external
power supplies.
``(E)(i) <<NOTE: Deadline. Regultions.>> Not later than 3 years
after the date of enactment of this subsection, the Secretary shall
issue a final rule that determines whether energy conservation standards
shall be issued for battery chargers and external power supplies or
classes of battery chargers and external power supplies.
``(ii) For each product class, any energy conservation standards
issued under clause (i) shall be set at the lowest level of energy use
that--
``(I) meets the criteria and procedures of subsections (o),
(p), (q), (r), (s), and (t); and
``(II) would result in significant overall annual energy
savings, considering standby mode and other operating modes.
``(2) In determining under section 323 whether test procedures and
energy conservation standards under this section should be revised with
respect to covered products that are major sources of standby mode
energy consumption, the Secretary shall consider whether to incorporate
standby mode into the test procedures and energy conservation standards,
taking into account standby mode power consumption compared to overall
product energy consumption.
``(3) The Secretary shall not propose an energy conservation
standard under this section, unless the Secretary has issued applicable
test procedures for each product under section 323.
``(4) <<NOTE: Applicability. Effective date.>> Any energy
conservation standard issued under this subsection shall be applicable
to products manufactured or imported beginning on the date that is 3
years after the date of issuance.
``(5) The Secretary and the Administrator shall collaborate and
develop programs (including programs under section 324A and other
voluntary industry agreements or codes of conduct) that are designed to
reduce standby mode energy use.
``(v) Ceiling <<NOTE: Deadline. Regulations.>> Fans and Refrigerated
Beverage Vending Machines.--(1) Not later than 1 year after the date of
enactment of this subsection, the Secretary shall prescribe, by rule,
test procedures and energy conservation standards for ceiling fans and
ceiling fan light kits. If the Secretary sets such standards, the
Secretary shall consider exempting or setting different standards for
certain product classes for which the primary standards are not
technically
[[Page 119 STAT. 631]]
feasible or economically justified, and establishing separate or
exempted product classes for highly decorative fans for which air
movement performance is a secondary design feature.
``(2) <<NOTE: Deadline. Regulations.>> Not later than 4 years after
the date of enactment of this subsection, the Secretary shall prescribe,
by rule, energy conservation standards for refrigerated bottle or canned
beverage vending machines.
``(3) In establishing energy conservation standards under this
subsection, the Secretary shall use the criteria and procedures
prescribed under subsections (o) and (p).
``(4) <<NOTE: Applicability.>> Any energy conservation standard
prescribed under this subsection shall apply to products manufactured 3
years after the date of publication of a final rule establishing the
energy conservation standard.
``(w) Illuminated Exit Signs.--An illuminated exit sign manufactured
on or after January 1, 2006, shall meet the version 2.0 Energy Star
Program performance requirements for illuminated exit signs prescribed
by the Environmental Protection Agency.
``(x) Torchieres.--A torchiere manufactured on or after January 1,
2006--
``(1) shall consume not more than 190 watts of power; and
``(2) shall not be capable of operating with lamps that
total more than 190 watts.
``(y) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of a low voltage dry-type distribution transformer
manufactured on or after January 1, 2007, shall be the Class I
Efficiency Levels for distribution transformers specified in table 4-2
of the `Guide for Determining Energy Efficiency for Distribution
Transformers' published by the National Electrical Manufacturers
Association (NEMA TP-1-2002).
``(z) Traffic Signal Modules and Pedestrian Modules.--Any traffic
signal module or pedestrian module manufactured on or after January 1,
2006, shall--
``(1) meet the performance requirements used under the
Energy Star program of the Environmental Protection Agency for
traffic signals, as in effect on the date of enactment of this
subsection; and
``(2) be installed with compatible, electrically connected
signal control interface devices and conflict monitoring
systems.
``(aa) Unit Heaters.--A unit heater manufactured on or after the
date that is 3 years after the date of enactment of this subsection
shall--
``(1) be equipped with an intermittent ignition device; and
``(2) have power venting or an automatic flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--(1) A bare lamp and
covered lamp (no reflector) medium base compact fluorescent lamp
manufactured on or after January 1, 2006, shall meet the following
requirements prescribed by the August 9, 2001, version of the Energy
Star Program Requirements for Compact Fluorescent Lamps, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued by the
Environmental Protection Agency and Department of Energy:
``(A) Minimum initial efficacy.
``(B) Lumen maintenance at 1000 hours.
``(C) Lumen maintenance at 40 percent of rated life.
``(D) Rapid cycle stress test.
[[Page 119 STAT. 632]]
``(E) Lamp life.
``(2) The Secretary may, by rule, establish requirements for color
quality (CRI), power factor, operating frequency, and maximum allowable
start time based on the requirements prescribed by the August 9, 2001,
version of the Energy Star Program Requirements for Compact Fluorescent
Lamps.
``(3) The Secretary may, by rule--
``(A) revise the requirements established under paragraph
(2); or
``(B) establish other requirements, after considering energy
savings, cost effectiveness, and consumer satisfaction.
``(cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or after
October 1, 2007, shall have an Energy Factor that meets or exceeds the
following values:
``Product Capacity (pints/day)Minimum Energy Factor (Liters/kWh)........
25.00 or less 1.00
25.01 - 35.00 1.20
35.01 - 54.00 1.30
54.01 - 74.99 1.50
75.00 or more 2.25.
``(2)(A) <<NOTE: Deadline. Publication. Regulations.>> Not later
than October 1, 2009, the Secretary shall publish a final rule in
accordance with subsections (o) and (p), to determine whether the energy
conservation standards established under paragraph (1) should be
amended.
``(B) The final rule published under subparagraph (A) shall--
``(i) contain any amendment by the Secretary; and
``(ii) <<NOTE: Applicability.>> provide that the amendment
applies to products manufactured on or after October 1, 2012.
``(C) If the Secretary does not publish an amendment that takes
effect by October 1, 2012, dehumidifiers manufactured on or after
October 1, 2012, shall have an Energy Factor that meets or exceeds the
following values:
``Product Capacity (pints/day)Minimum Energy Factor (Liters/kWh)........
25.00 or less 1.20
25.01 - 35.00 1.30
35.01 - 45.00 1.40
45.01 - 54.00 1.50
54.01 - 74.99 1.60
75.00 or more 2.5.
``(dd) Commercial Prerinse Spray Valves.--Commercial prerinse spray
valves manufactured on or after January 1, 2006, shall have a flow rate
of not more than 1.6 gallons per minute.
``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp ballasts
shall not be manufactured or imported after January 1, 2008.
``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All ceiling
fans manufactured on or after January 1, 2007, shall have the following
features:
``(i) Fan speed controls separate from any lighting
controls.
``(ii) Adjustable speed controls (either more than 1 speed
or variable speed).
``(iii) Adjustable speed controls (either more than 1 speed
or variable speed).
``(iv) The capability of reversible fan action, except for--
[[Page 119 STAT. 633]]
``(I) fans sold for industrial applications;
``(II) outdoor applications; and
``(III) cases in which safety standards would be
violated by the use of the reversible mode.
``(B) The Secretary may define the exceptions described in clause
(iv) in greater detail, but shall not substantively expand the
exceptions.
``(2)(A) Ceiling fan light kits with medium screw base sockets
manufactured on or after January 1, 2007, shall be packaged with screw-
based lamps to fill all screw base sockets.
``(B) The screw-based lamps required under subparagraph (A) shall--
``(i) meet the Energy Star Program Requirements for Compact
Fluorescent Lamps, version 3.0, issued by the Department of
Energy; or
``(ii) use light sources other than compact fluorescent
lamps that have lumens per watt performance at least equivalent
to comparably configured compact fluorescent lamps meeting the
Energy Star Program Requirements described in clause (i).
``(3) Ceiling fan light kits with pin-based sockets for fluorescent
lamps manufactured on or after January 1, 2007 shall--
``(A) meet the Energy Star Program Requirements for
Residential Light Fixtures version 4.0 issued by the
Environmental Protection Agency; and
``(B) be packaged with lamps to fill all sockets.
``(4)(A) <<NOTE: Deadline. Requirements.>> By January 1, 2007, the
Secretary shall consider and issue requirements for any ceiling fan
lighting kits other than those covered in paragraphs (2) and (3),
including candelabra screw base sockets.
``(B) The requirements issued under subparagraph (A) shall be
effective for products manufactured 2 years after the date of the final
rule.
``(C) If the Secretary fails to issue a final rule by the date
specified in subparagraph (B), any type of ceiling fan lighting kit
described in subparagraph (A) that is manufactured after January 1,
2009--
``(i) shall not be capable of operating with lamps that
total more than 190 watts; and
``(ii) shall include the lamps described in clause (i) in
the ceiling fan lighting kits.
``(5)(A) After January 1, 2010, the Secretary may consider, and
issue, if the requirements of subsections (o) and (p) are met, amended
energy efficiency standards for ceiling fan light kits.
``(B) <<NOTE: Applicability.>> Any amended standards issued under
subparagraph (A) shall apply to products manufactured not earlier than 2
years after the date of publication of the final rule establishing the
amended standard.
``(6)(A) Notwithstanding any other provision of this Act, the
Secretary may consider, and issue, if the requirements of subsections
(o) and (p) are met, energy efficiency or energy use standards for
electricity used by ceiling fans to circulate air in a room.
``(B) In issuing the standards under subparagraph (A), the Secretary
shall consider--
``(C) exempting, or setting different standards for, certain
product classes for which the primary standards are not
technically feasible or economically justified; and
[[Page 119 STAT. 634]]
``(D) establishing separate exempted product classes for
highly decorative fans for which air movement performance is a
secondary design feature.
``(7) <<NOTE: Applicability.>> Section 327 shall apply to the
products covered in paragraphs (1) through (4) beginning on the date of
enactment of this subsection, except that any State or local labeling
requirement for ceiling fans prescribed or enacted before the date of
enactment of this subsection shall not be preempted until the labeling
requirements applicable to ceiling fans established under section 327
take effect.
``(gg) Application Date.--Section 327 applies--
``(1) to products for which energy conservation standards
are to be established under subsection (l), (u), or (v)
beginning on the date on which a final rule is issued by the
Secretary, except that any State or local standard prescribed or
enacted for the product before the date on which the final rule
is issued shall not be preempted until the energy conservation
standard established under subsection (l), (u), or (v) for the
product takes effect; and
``(2) to products for which energy conservation standards
are established under subsections (w) through (ff) on the date
of enactment of those subsections, except that any State or
local standard prescribed or enacted before the date of
enactment of those subsections shall not be preempted until the
energy conservation standards established under subsections (w)
through (ff) take effect.''.
(d) General Rule of Preemption.--Section 327(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6297(c)) is amended--
(1) in paragraph (5), by striking ``or'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(7)(A) is a regulation concerning standards for commercial
prerinse spray valves adopted by the California Energy
Commission before January 1, 2005; or
``(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations with changes in American Society for Testing and
Materials Standard F2324;
``(8)(A) is a regulation concerning standards for pedestrian
modules adopted by the California Energy Commission before
January 1, 2005; or
``(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations to changes in the Institute for Transportation
Engineers standards, entitled `Performance Specification:
Pedestrian Traffic Control Signal Indications'.''.
SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.
(a) Definitions.--Section 340 of the Energy Policy and Conservation
Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (D) through (G)
as subparagraphs (H) through (K), respectively; and
(B) by inserting after subparagraph (C) the
following:
[[Page 119 STAT. 635]]
``(D) Very large commercial package air conditioning
and heating equipment.
``(E) Commercial refrigerators, freezers, and
refrigerator-freezers.
``(F) Automatic commercial ice makers.
``(G) Commercial clothes washers.'';
(2) in paragraph (2)(B), by striking ``small and large
commercial package air conditioning and heating equipment'' and
inserting ``commercial package air conditioning and heating
equipment, commercial refrigerators, freezers, and refrigerator-
freezers, automatic commercial ice makers, commercial clothes
washers'';
(3) by striking paragraphs (8) and (9) and inserting the
following:
``(8)(A) The term `commercial package air conditioning and
heating equipment' means air-cooled, water-cooled,
evaporatively-cooled, or water source (not including ground
water source) electrically operated, unitary central air
conditioners and central air conditioning heat pumps for
commercial application.
``(B) The term `small commercial package air conditioning
and heating equipment' means commercial package air conditioning
and heating equipment that is rated below 135,000 Btu per hour
(cooling capacity).
``(C) The term `large commercial package air conditioning
and heating equipment' means commercial package air conditioning
and heating equipment that is rated--
``(i) at or above 135,000 Btu per hour; and
``(ii) below 240,000 Btu per hour (cooling
capacity).
``(D) The term `very large commercial package air
conditioning and heating equipment' means commercial package air
conditioning and heating equipment that is rated--
``(i) at or above 240,000 Btu per hour; and
``(ii) below 760,000 Btu per hour (cooling
capacity).
``(9)(A) The term `commercial refrigerator, freezer, and
refrigerator-freezer' means refrigeration equipment that--
``(i) is not a consumer product (as defined in
section 321);
``(ii) is not designed and marketed exclusively for
medical, scientific, or research purposes;
``(iii) operates at a chilled, frozen, combination
chilled and frozen, or variable temperature;
``(iv) displays or stores merchandise and other
perishable materials horizontally, semivertically, or
vertically;
``(v) has transparent or solid doors, sliding or
hinged doors, a combination of hinged, sliding,
transparent, or solid doors, or no doors;
``(vi) is designed for pull-down temperature
applications or holding temperature applications; and
``(vii) is connected to a self-contained condensing
unit or to a remote condensing unit.
``(B) The term `holding temperature application' means a use
of commercial refrigeration equipment other than a pull-down
temperature application, except a blast chiller or freezer.
``(C) The term `integrated average temperature' means the
average temperature of all test package measurements taken
during the test.
[[Page 119 STAT. 636]]
``(D) The term `pull-down temperature application' means a
commercial refrigerator with doors that, when fully loaded with
12 ounce beverage cans at 90 degrees F, can cool those beverages
to an average stable temperature of 38 degrees F in 12 hours or
less.
``(E) The term `remote condensing unit' means a factory-made
assembly of refrigerating components designed to compress and
liquefy a specific refrigerant that is remotely located from the
refrigerated equipment and consists of one or more refrigerant
compressors, refrigerant condensers, condenser fans and motors,
and factory supplied accessories.
``(F) The term `self-contained condensing unit' means a
factory-made assembly of refrigerating components designed to
compress and liquefy a specific refrigerant that is an integral
part of the refrigerated equipment and consists of one or more
refrigerant compressors, refrigerant condensers, condenser fans
and motors, and factory supplied accessories.''; and
(4) by adding at the end the following:
``(19) The term `automatic commercial ice maker' means a
factory-made assembly (not necessarily shipped in one package)
that--
``(A) consists of a condensing unit and ice-making
section operating as an integrated unit, with means for
making and harvesting ice; and
``(B) may include means for storing ice, dispensing
ice, or storing and dispensing ice.
``(20) The term `commercial clothes washer' means a soft-
mount front-loading or soft-mount top-loading clothes washer
that--
``(A) has a clothes container compartment that--
``(i) for horizontal-axis clothes washers, is
not more than 3.5 cubic feet; and
``(ii) for vertical-axis clothes washers, is
not more than 4.0 cubic feet; and
``(B) is designed for use in--
``(i) applications in which the occupants of
more than one household will be using the clothes
washer, such as multi-family housing common areas
and coin laundries; or
``(ii) other commercial applications.
``(21) The term `harvest rate' means the amount of ice (at
32 degrees F) in pounds produced per 24 hours.''.
(b) Standards for Commercial Package Air Conditioning and Heating
Equipment.--Section 342(a) of the Energy Policy and Conservation Act (42
U.S.C. 6313(a)) is amended--
(1) in the subsection heading, by striking ``Small and
Large'' and inserting ``Small, Large, and Very Large'';
(2) in paragraph (1), by inserting ``but before January 1,
2010,'' after ``January 1, 1994,'';
(3) in paragraph (2), by inserting ``but before January 1,
2010,'' after ``January 1, 1995,''; and
(4) in paragraph (6)--
(A) in subparagraph (A)--
(i) by inserting ``(i)'' after ``(A)'';
(ii) by striking ``the date of enactment of
the Energy Policy Act of 1992'' and inserting
``January 1, 2010'';
[[Page 119 STAT. 637]]
(iii) by inserting after ``large commercial
package air conditioning and heating equipment,''
the following: ``and very large commercial package
air conditioning and heating equipment, or if
ASHRAE/IES Standard 90.1, as in effect on October
24, 1992, is amended with respect to any''; and
(iv) by adding at the end the following:
``(ii) If ASHRAE/IES Standard 90.1 is not amended with respect to
small commercial package air conditioning and heating equipment, large
commercial package air conditioning and heating equipment, and very
large commercial package air conditioning and heating equipment during
the 5-year period beginning on the effective date of a standard, the
Secretary may initiate a rulemaking to determine whether a more
stringent standard--
``(I) would result in significant additional conservation of
energy; and
``(II) is technologically feasible and economically
justified.''; and
(B) in subparagraph (C)(ii), by inserting ``and very
large commercial package air conditioning and heating
equipment'' after ``large commercial package air
conditioning and heating equipment''; and
(5) by adding at the end the following:
``(7) Small commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 65,000 Btu per hour
(cooling capacity) and less than 135,000 Btu per hour (cooling
capacity) shall be--
``(i) 11.2 for equipment with no heating or electric
resistance heating; and
``(ii) 11.0 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 65,000 Btu per
hour (cooling capacity) and less than 135,000 Btu per hour
(cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or electric
resistance heating; and
``(ii) 10.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 65,000 Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be 3.3 (at a high
temperature rating of 47 degrees F db).
``(8) Large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 135,000 Btu per hour
(cooling capacity) and less than 240,000 Btu per hour (cooling
capacity) shall be--
[[Page 119 STAT. 638]]
``(i) 11.0 for equipment with no heating or electric
resistance heating; and
``(ii) 10.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 135,000 Btu per
hour (cooling capacity) and less than 240,000 Btu per hour
(cooling capacity) shall be--
``(i) 10.6 for equipment with no heating or electric
resistance heating; and
``(ii) 10.4 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 135,000 Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
temperature rating of 47 degrees F db).
``(9) Very large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 240,000 Btu per hour
(cooling capacity) and less than 760,000 Btu per hour (cooling
capacity) shall be--
``(i) 10.0 for equipment with no heating or electric
resistance heating; and
``(ii) 9.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 240,000 Btu per
hour (cooling capacity) and less than 760,000 Btu per hour
(cooling capacity) shall be--
``(i) 9.5 for equipment with no heating or electric
resistance heating; and
``(ii) 9.3 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 240,000 Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
temperature rating of 47 degrees F db).''.
(c) Standards for Commercial Refrigerators, Freezers, and
Refrigerator-Freezers.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the
following:
``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
``(A) The term `AV' means the adjusted volume
(ft<SUP>3</SUP>) (defined as 1.63 x frozen temperature
compartment volume (ft<SUP>3</SUP>) + chilled temperature
compartment volume (ft<SUP>3</SUP>)) with compartment volumes
measured in accordance with the Association of Home Appliance
Manufacturers Standard HRF1-1979.
[[Page 119 STAT. 639]]
``(B) The term `V' means the chilled or frozen compartment
volume (ft<SUP>3</SUP>) (as defined in the Association of Home
Appliance Manufacturers Standard HRF1-1979).
``(C) Other terms have such meanings as may be established
by the Secretary, based on industry-accepted definitions and
practice.
``(2) Each commercial refrigerator, freezer, and refrigerator-
freezer with a self-contained condensing unit designed for holding
temperature applications manufactured on or after January 1, 2010, shall
have a daily energy consumption (in kilowatt hours per day) that does
not exceed the following:
Refrigerators with solid doors.. 0.10 V + 2.04
Refrigerators with transparent 0.12 V + 3.34
doors.
Freezers with solid doors....... 0.40 V + 1.38
Freezers with transparent doors. 0.75 V + 4.10
Refrigerators/freezers with 0.27 AV - 0.71 or 0.70.
solid doors the greater of.
``(3) Each commercial refrigerator with a self-contained condensing
unit designed for pull-down temperature applications and transparent
doors manufactured on or after January 1, 2010, shall have a daily
energy consumption (in kilowatt hours per day) of not more than 0.126 V
+ 3.51.
``(4)(A) <<NOTE: Deadline. Regulations.>> Not later than January 1,
2009, the Secretary shall issue, by rule, standard levels for ice-cream
freezers, self-contained commercial refrigerators, freezers, and
refrigerator-freezers without doors, and remote condensing commercial
refrigerators, freezers, and refrigerator-freezers, with the standard
levels effective for equipment manufactured on or after January 1, 2012.
``(B) The Secretary may issue, by rule, standard levels for other
types of commercial refrigerators, freezers, and refrigerator-freezers
not covered by paragraph (2)(A) with the standard levels effective for
equipment manufactured 3 or more years after the date on which the final
rule is published.
``(5)(A) <<NOTE: Deadlines. Regulations.>> Not later than January 1,
2013, the Secretary shall issue a final rule to determine whether the
standards established under this subsection should be amended.
``(B) Not later than 3 years after the effective date of any amended
standards under subparagraph (A) or the publication of a final rule
determining that the standards should not be amended, the Secretary
shall issue a final rule to determine whether the standards established
under this subsection or the amended standards, as applicable, should be
amended.
``(C) <<NOTE: Applicability.>> If the Secretary issues a final rule
under subparagraph (A) or (B) establishing amended standards, the final
rule shall provide that the amended standards apply to products
manufactured on or after the date that is--
``(i) 3 years after the date on which the final amended
standard is published; or
``(ii) if the Secretary determines, by rule, that 3 years is
inadequate, not later than 5 years after the date on which the
final rule is published.''.
(d) Standards for Automatic Commercial Ice Makers.--Section 342 of
the Energy Policy and Conservation Act (42 U.S.C.
[[Page 119 STAT. 640]]
6313) (as amended by subsection (c)) is amended by adding at the end the
following:
``(d) Automatic Commercial Ice Makers.--(1) Each automatic
commercial ice maker that produces cube type ice with capacities between
50 and 2500 pounds per 24-hour period when tested according to the test
standard established in section 343(a)(7) and is manufactured on or
after January 1, 2010, shall meet the following standard levels:
----------------------------------------------------------------------------------------------------------------
Maximum Condenser
Equipment Type Type of Harvest Rate (lbs ice/ Maximum Energy Use Water Use (gal/100
Cooling 24 hours) (kWh/100 lbs Ice) lbs Ice)
----------------------------------------------------------------------------------------------------------------
Ice Making Head Water <500 7.80-0.0055H 200-0.022H
------------------------------------------------------------------
500 and <1436 5.58-0.0011H 200-0.022H
------------------------------------------------------------------
1436 4.0 200-0.022H
----------------------------------------------------------------------------------------------------------------
Ice Making Head Air <450 10.26-0.0086H Not Applicable
------------------------------------------------------------------
450 6.89-0.0011H Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing Air <1000 8.85-0.0038H Not Applicable
(but not remote
compressor)
------------------------------------------------------------------
1000 5.10 Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing Air <934 8.85-0.0038H Not Applicable
and Remote
Compressor
------------------------------------------------------------------
934 5.3 Not Applicable
----------------------------------------------------------------------------------------------------------------
Self Contained Water <200 11.40-0.019H 191-0.0315H
------------------------------------------------------------------
200 7.60 191-0.0315H
----------------------------------------------------------------------------------------------------------------
Self Contained Air <175 18.0-0.0469H Not Applicable
------------------------------------------------------------------
175 9.80 Not Applicable
----------------------------------------------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.
``(2)(A) The Secretary may issue, by rule, standard levels for types
of automatic commercial ice makers that are not covered by paragraph
(1).
``(B) <<NOTE: Applicability.>> The standards established under
subparagraph (A) shall apply to products manufactured on or after the
date that is--
``(i) 3 years after the date on which the rule is published
under subparagraph (A); or
[[Page 119 STAT. 641]]
``(ii) <<NOTE: Deadline.>> if the Secretary determines, by
rule, that 3 years is inadequate, not later than 5 years after
the date on which the final rule is published.
``(3)(A) <<NOTE: Deadlines. Regulations.>> Not later than January 1,
2015, with respect to the standards established under paragraph (1),
and, with respect to the standards established under paragraph (2), not
later than 5 years after the date on which the standards take effect,
the Secretary shall issue a final rule to determine whether amending the
applicable standards is technologically feasible and economically
justified.
``(B) Not later than 5 years after the effective date of any amended
standards under subparagraph (A) or the publication of a final rule
determining that amending the standards is not technologically feasible
or economically justified, the Secretary shall issue a final rule to
determine whether amending the standards established under paragraph (1)
or the amended standards, as applicable, is technologically feasible or
economically justified.
``(C) <<NOTE: Applicability.>> If the Secretary issues a final rule
under subparagraph (A) or (B) establishing amended standards, the final
rule shall provide that the amended standards apply to products
manufactured on or after the date that is--
``(i) 3 years after the date on which the final amended
standard is published; or
``(ii) if the Secretary determines, by rule, that 3 years is
inadequate, not later than 5 years after the date on which the
final amended standard is published.
``(4) A final rule issued under paragraph (2) or (3) shall establish
standards at the maximum level that is technically feasible and
economically justified, as provided in subsections (o) and (p) of
section 325.''.
(e) Standards for Commercial Clothes Washers.--Section 342 of the
Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by
subsection (d)) is amended by adding at the end the following:
``(e) Commercial Clothes Washers.--(1) Each commercial clothes
washer manufactured on or after January 1, 2007, shall have--
``(A) a Modified Energy Factor of at least 1.26; and
``(B) a Water Factor of not more than 9.5.
``(2)(A)(i) <<NOTE: Deadlines. Publication. Regulations.>> Not later
than January 1, 2010, the Secretary shall publish a final rule to
determine whether the standards established under paragraph (1) should
be amended.
``(ii) <<NOTE: Applicability.>> The rule published under clause (i)
shall provide that any amended standard shall apply to products
manufactured 3 years after the date on which the final amended standard
is published.
``(B)(i) Not later than January 1, 2015, the Secretary shall publish
a final rule to determine whether the standards established under
paragraph (1) should be amended.
``(ii) <<NOTE: Applicability.>> The rule published under clause (i)
shall provide that any amended standard shall apply to products
manufactured 3 years after the date on which the final amended standard
is published.''.
(f) Test Procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended--
(1) in subsection (a)--
(A) in paragraph (4)--
[[Page 119 STAT. 642]]
(i) in subparagraph (A), by inserting ``very
large commercial package air conditioning and
heating equipment,'' after ``large commercial
package air conditioning and heating equipment,'';
and
(ii) in subparagraph (B), by inserting ``very
large commercial package air conditioning and
heating equipment,'' after ``large commercial
package air conditioning and heating equipment,'';
and
(B) by adding at the end the following:
``(6)(A)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers, the test procedures shall be--
``(I) the test procedures determined by the Secretary to be
generally accepted industry testing procedures; or
``(II) rating procedures developed or recognized by the
ASHRAE or by the American National Standards Institute.
``(ii) In the case of self-contained refrigerators, freezers, and
refrigerator-freezers to which standards are applicable under paragraphs
(2) and (3) of section 342(c), the initial test procedures shall be the
ASHRAE 117 test procedure that is in effect on January 1, 2005.
``(B)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers with doors covered by the standards adopted in
February 2002, by the California Energy Commission, the rating
temperatures shall be the integrated average temperature of 38 degrees F
( <plus-minus> 2 degrees F) for refrigerator compartments and 0 degrees
F ( <plus-minus> 2 degrees F) for freezer compartments.
``(C) <<NOTE: Regulations.>> The Secretary shall issue a rule in
accordance with paragraphs (2) and (3) to establish the appropriate
rating temperatures for the other products for which standards will be
established under section 342(c)(4).
``(D) In establishing the appropriate test temperatures under this
subparagraph, the Secretary shall follow the procedures and meet the
requirements under section 323(e).
``(E)(i) <<NOTE: Deadline. Regulations.>> Not later than 180 days
after the publication of the new ASHRAE 117 test procedure, if the
ASHRAE 117 test procedure for commercial refrigerators, freezers, and
refrigerator-freezers is amended, the Secretary shall, by rule, amend
the test procedure for the product as necessary to ensure that the test
procedure is consistent with the amended ASHRAE 117 test procedure,
unless the Secretary makes a determination, by rule, and supported by
clear and convincing evidence, that to do so would not meet the
requirements for test procedures under paragraphs (2) and (3).
``(ii) <<NOTE: Notice. Federal Register, publication.>> If the
Secretary determines that 180 days is an insufficient period during
which to review and adopt the amended test procedure or rating procedure
under clause (i), the Secretary shall publish a notice in the Federal
Register stating the intent of the Secretary to wait not longer than 1
additional year before putting into effect an amended test procedure or
rating procedure.
``(F)(i) <<NOTE: Regulations.>> If a test procedure other than the
ASHRAE 117 test procedure is approved by the American National Standards
Institute, the Secretary shall, by rule--
``(I) review the relative strengths and weaknesses of the
new test procedure relative to the ASHRAE 117 test procedure;
and
``(II) based on that review, adopt one new test procedure
for use in the standards program.
``(ii) <<NOTE: Applicability.>> If a new test procedure is adopted
under clause (i)--
[[Page 119 STAT. 643]]
``(I) section 323(e) shall apply; and
``(II) subparagraph (B) shall apply to the adopted test
procedure.
``(7)(A) In the case of automatic commercial ice makers, the test
procedures shall be the test procedures specified in Air-Conditioning
and Refrigeration Institute Standard 810-2003, as in effect on January
1, 2005.
``(B)(i) <<NOTE: Regulations. Federal Register, publication.>> If
Air-Conditioning and Refrigeration Institute Standard 810-2003 is
amended, the Secretary shall amend the test procedures established in
subparagraph (A) as necessary to be consistent with the amended Air-
Conditioning and Refrigeration Institute Standard, unless the Secretary
determines, by rule, published in the Federal Register and supported by
clear and convincing evidence, that to do so would not meet the
requirements for test procedures under paragraphs (2) and (3).
``(ii) If the Secretary issues a rule under clause (i) containing a
determination described in clause (ii), the rule may establish an
amended test procedure for the product that meets the requirements of
paragraphs (2) and (3).
``(C) The Secretary shall comply with section 323(e) in establishing
any amended test procedure under this paragraph.
``(8) With respect to commercial clothes washers, the test
procedures shall be the same as the test procedures established by the
Secretary for residential clothes washers under section 325(g).''; and
(2) in subsection (d)(1), by inserting ``very large
commercial package air conditioning and heating equipment,
commercial refrigerators, freezers, and refrigerator-freezers,
automatic commercial ice makers, commercial clothes washers,''
after ``large commercial package air conditioning and heating
equipment,''.
(g) Labeling.--Section 344(e) of the Energy Policy and Conservation
Act (42 U.S.C. 6315(e)) is amended by inserting ``very large commercial
package air conditioning and heating equipment, commercial
refrigerators, freezers, and refrigerator-freezers, automatic commercial
ice makers, commercial clothes washers,'' after ``large commercial
package air conditioning and heating equipment,'' each place it appears.
(h) Administration, <<NOTE: Applicability.>> Penalties, Enforcement,
and Preemption.--Section 345 of the Energy Policy and Conservation Act
(42 U.S.C. 6316) is amended--
(1) in subsection (a)--
(A) in paragraph (7), by striking ``and'' at the
end;
(B) in paragraph (8), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(9) in the case of commercial clothes washers, section
327(b)(1) shall be applied as if the National Appliance Energy
Conservation Act of 1987 was the Energy Policy Act of 2005.'';
(2) in the first sentence of subsection (b)(1), by striking
``part B'' and inserting ``part A''; and
(3) by adding at the end the following:
``(d)(1) Except as provided in paragraphs (2) and (3), section 327
shall apply with respect to very large commercial package air
conditioning and heating equipment to the same extent and in the same
manner as section 327 applies under part A on the date of enactment of
this subsection.
[[Page 119 STAT. 644]]
``(2) <<NOTE: Effective date.>> Any State or local standard issued
before the date of enactment of this subsection shall not be preempted
until the standards established under section 342(a)(9) take effect on
January 1, 2010.
``(e)(1)(A) <<NOTE: Applicability.>> Subsections (a), (b), and (d)
of section 326, subsections (m) through (s) of section 325, and sections
328 through 336 shall apply with respect to commercial refrigerators,
freezers, and refrigerator-freezers to the same extent and in the same
manner as those provisions apply under part A.
``(B) In applying those provisions to commercial refrigerators,
freezers, and refrigerator-freezers, paragraphs (1), (2), (3), and (4)
of subsection (a) shall apply.
``(2)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established
under paragraphs (2) and (3) of section 342(c) to the same extent and in
the same manner as those provisions apply under part A on the date of
enactment of this subsection, except that any State or local standard
issued before the date of enactment of this subsection shall not be
preempted until the standards established under paragraphs (2) and (3)
of section 342(c) take effect.
``(B) In applying section 327 in accordance with subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a) shall apply.
``(3)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established
under section 342(c)(4) to the same extent and in the same manner as the
provisions apply under part A on the date of publication of the final
rule by the Secretary, except that any State or local standard issued
before the date of publication of the final rule by the Secretary shall
not be preempted until the standards take effect.
``(B) In applying section 327 in accordance with subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a) shall apply.
``(4)(A) If the Secretary does not issue a final rule for a specific
type of commercial refrigerator, freezer, or refrigerator-freezer within
the time frame specified in section 342(c)(5), subsections (b) and (c)
of section 327 shall not apply to that specific type of refrigerator,
freezer, or refrigerator-freezer for the period beginning on the date
that is 2 years after the scheduled date for a final rule and ending on
the date on which the Secretary publishes a final rule covering the
specific type of refrigerator, freezer, or refrigerator-freezer.
``(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the final
rule takes effect.
``(5)(A) <<NOTE: Certification.>> In the case of any commercial
refrigerator, freezer, or refrigerator-freezer to which standards are
applicable under paragraphs (2) and (3) of section 342(c), the Secretary
shall require manufacturers to certify, through an independent,
nationally recognized testing or certification program, that the
commercial refrigerator, freezer, or refrigerator-freezer meets the
applicable standard.
``(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 independent testing and
certification programs.
``(C) <<NOTE: Records.>> As part of certification, information on
equipment energy use and interior volume shall be made available to the
Secretary.
``(f)(1)(A)(i) <<NOTE: Applicability.>> Except as provided in clause
(ii), section 327 shall apply to automatic commercial ice makers for
which standards
[[Page 119 STAT. 645]]
have been established under section 342(d)(1) to the same extent and in
the same manner as the section applies under part A on the date of
enactment of this subsection.
``(ii) Any State standard issued before the date of enactment of
this subsection shall not be preempted until the standards established
under section 342(d)(1) take effect.
``(B) In applying section 327 to the equipment under subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
``(2)(A)(i) Except as provided in clause (ii), section 327 shall
apply to automatic commercial ice makers for which standards have been
established under section 342(d)(2) to the same extent and in the same
manner as the section applies under part A on the date of publication of
the final rule by the Secretary.
``(ii) Any State standard issued before the date of publication of
the final rule by the Secretary shall not be preempted until the
standards established under section 342(d)(2) take effect.
``(B) In applying section 327 in accordance with subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a) shall apply.
``(3)(A) If the Secretary does not issue a final rule for a specific
type of automatic commercial ice maker within the time frame specified
in section 342(d), subsections (b) and (c) of section 327 shall no
longer apply to the specific type of automatic commercial ice maker for
the period beginning on the day after the scheduled date for a final
rule and ending on the date on which the Secretary publishes a final
rule covering the specific type of automatic commercial ice maker.
``(B) Any State standard issued before the publication of the final
rule shall not be preempted until the standards established in the final
rule take effect.
``(4)(A) The Secretary shall monitor whether manufacturers are
reducing harvest rates below tested values for the purpose of bringing
non-complying equipment into compliance.
``(B) If the Secretary finds that there has been a substantial
amount of manipulation with respect to harvest rates under subparagraph
(A), the Secretary shall take steps to minimize the manipulation, such
as requiring harvest rates to be within 5 percent of tested values.
``(g)(1)(A) If the Secretary does not issue a final rule for
commercial clothes washers within the timeframe specified in section
342(e)(2), subsections (b) and (c) of section 327 shall not apply to
commercial clothes washers for the period beginning on the day after the
scheduled date for a final rule and ending on the date on which the
Secretary publishes a final rule covering commercial clothes washers.
``(B) Any State or local standard issued before the date on which
the Secretary publishes a final rule shall not be preempted until the
standards established under section 342(e)(2) take effect.
``(2) The Secretary shall undertake an educational program to inform
owners of laundromats, multifamily housing, and other sites where
commercial clothes washers are located about the new standard, including
impacts on washer purchase costs and options for recovering those costs
through coin collection.''.
SEC. 137. ENERGY LABELING.
(a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Section 324(a)(2) of the Energy Policy and Conservation
[[Page 119 STAT. 646]]
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the
following:
``(F)(i) <<NOTE: Deadlines.>> Not later than 90 days after the date
of enactment of this subparagraph, the Commission shall initiate a
rulemaking to consider--
``(I) the effectiveness of the consumer products labeling
program in assisting consumers in making purchasing decisions
and improving energy efficiency; and
``(II) changes to the labeling rules (including categorical
labeling) that would improve the effectiveness of consumer
product labels.
``(ii) Not later than 2 years after the date of enactment of this
subparagraph, the Commission shall complete the rulemaking initiated
under clause (i).
``(G)(i) <<NOTE: Deadline.>> Not later than 18 months after the date
of enactment of this subparagraph, the Commission shall issue by rule,
in accordance with this section, labeling requirements for the
electricity used by ceiling fans to circulate air in a room.
``(ii) <<NOTE: Applicability.>> The rule issued under clause (i)
shall apply to products manufactured after the later of--
``(I) January 1, 2009; or
``(II) the date that is 60 days after the final rule is
issued.''.
(b) Rulemaking on Labeling for Additional Products.--Section 324(a)
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is amended
by adding at the end the following:
``(5)(A) For covered products described in subsections (u) through
(ff) of section 325, after a test procedure has been prescribed under
section 323, the Secretary or the Commission, as appropriate, may
prescribe, by rule, under this section labeling requirements for the
products.
``(B) In the case of products to which TP-1 standards under section
325(y) apply, labeling requirements shall be based on the `Standard for
the Labeling of Distribution Transformer Efficiency' prescribed by the
National Electrical Manufacturers Association (NEMA TP-3) as in effect
on the date of enactment of this paragraph.
``(C) In the case of dehumidifiers covered under section 325(dd),
the Commission shall not require an `Energy Guide' label.''.
SEC. 138. INTERMITTENT ESCALATOR STUDY.
(a) In General.--The Administrator of General Services shall conduct
a study on the advantages and disadvantages of employing intermittent
escalators in the United States.
(b) Contents.--Such study shall include an analysis of--
(1) the energy end-cost savings derived from the use of
intermittent escalators;
(2) the cost savings derived from reduced maintenance
requirements; and
(3) such other issues as the Administrator considers
appropriate.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall transmit to Congress a
report on the results of the study.
(d) Definition.--For purposes of this section, the term
``intermittent escalator'' means an escalator that remains in a
stationary
[[Page 119 STAT. 647]]
position until it automatically operates at the approach of a passenger,
returning to a stationary position after the passenger completes
passage.
SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES STUDY.
(a) In General.--Not <<NOTE: Deadline.>> later than 1 year after the
date of enactment of this Act, the Secretary, in consultation with the
National Association of Regulatory Utility Commissioners and the
National Association of State Energy Officials, shall conduct a study of
State and regional policies that promote cost-effective programs to
reduce energy consumption (including energy efficiency programs) that
are carried out by--
(1) utilities that are subject to State regulation; and
(2) nonregulated utilities.
(b) Consideration.--In conducting the study under subsection (a),
the Secretary shall take into consideration--
(1) performance standards for achieving energy use and
demand reduction targets;
(2) funding sources, including rate surcharges;
(3) infrastructure planning approaches (including energy
efficiency programs) and infrastructure improvements;
(4) the costs and benefits of consumer education programs
conducted by State and local governments and local utilities to
increase consumer awareness of energy efficiency technologies
and measures; and
(5) methods of--
(A) removing disincentives for utilities to
implement energy efficiency programs;
(B) encouraging utilities to undertake voluntary
energy efficiency programs; and
(C) ensuring appropriate returns on energy
efficiency programs.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that
includes--
(1) the findings of the study; and
(2) any recommendations of the Secretary, including
recommendations on model policies to promote energy efficiency
programs.
SEC. 140. <<NOTE: 42 USC 15833.>> ENERGY EFFICIENCY PILOT PROGRAM.
(a) In General.--The Secretary shall establish a pilot program under
which the Secretary provides financial assistance to at least 3, but not
more than 7, States to carry out pilot projects in the States for--
(1) planning and adopting statewide programs that encourage,
for each year in which the pilot project is carried out--
(A) energy efficiency; and
(B) reduction of consumption of electricity or
natural gas in the State by at least 0.75 percent, as
compared to a baseline determined by the Secretary for
the period preceding the implementation of the program;
or
(2) for any State that has adopted a statewide program as of
the date of enactment of this Act, activities that reduce energy
consumption in the State by expanding and improving the program.
[[Page 119 STAT. 648]]
(b) Verification.--A State that receives financial assistance under
subsection (a)(1) shall submit to the Secretary independent verification
of any energy savings achieved through the statewide program.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2006 through 2010, to remain available until expended.
SEC. 141. <<NOTE: 42 USC 15834.>> REPORT ON FAILURE TO COMPLY WITH
DEADLINES FOR NEW OR REVISED ENERGY CONSERVATION STANDARDS.
(a) Initial Report.--The Secretary shall submit a report to Congress
regarding each new or revised energy conservation or water use standard
which the Secretary has failed to issue in conformance with the
deadlines established in the Energy Policy and Conservation Act. Such
report shall state the reasons why the Secretary has failed to comply
with the deadline for issuances of the new or revised standard and set
forth the Secretary's plan for expeditiously prescribing such new or
revised standard. The Secretary's initial report shall be submitted not
later than 6 months following enactment of this Act and subsequent
reports shall be submitted whenever the Secretary determines that
additional deadlines for issuance of new or revised standards have been
missed.
(b) Implementation Report.--Every 6 months following the submission
of a report under subsection (a) until the adoption of a new or revised
standard described in such report, the Secretary shall submit to the
Congress an implementation report describing the Secretary's progress in
implementing the Secretary's plan or the issuance of the new or revised
standard.
Subtitle D--Public Housing
SEC. 151. PUBLIC HOUSING CAPITAL FUND.
Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g)
is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (I), by striking ``and'' at the
end;
(B) in subparagraph (J), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(K) improvement of energy and water-use efficiency
by installing fixtures and fittings that conform to the
American Society of Mechanical Engineers/American
National Standards Institute standards A112.19.2-1998
and A112.18.1-2000, or any revision thereto, applicable
at the time of installation, and by increasing energy
efficiency and water conservation by such other means as
the Secretary determines are appropriate; and
``(L) integrated utility management and capital
planning to maximize energy conservation and efficiency
measures.''; and
(2) in subsection (e)(2)(C)--
(A) by striking ``The'' and inserting the following:
``(i) In general.--The''; and
(B) by adding at the end the following:
[[Page 119 STAT. 649]]
``(ii) Third party contracts.--Contracts
described in clause (i) may include contracts for
equipment conversions to less costly utility
sources, projects with resident-paid utilities,
and adjustments to frozen base year consumption,
including systems repaired to meet applicable
building and safety codes and adjustments for
occupancy rates increased by rehabilitation.
``(iii) Term of contract.--The total term of a
contract described in clause (i) shall not exceed
20 years to allow longer payback periods for
retrofits, including windows, heating system
replacements, wall insulation, site-based
generation, advanced energy savings technologies,
including renewable energy generation, and other
such retrofits.''.
SEC. 152. <<NOTE: 42 USC 15841.>> ENERGY-EFFICIENT APPLIANCES.
In purchasing appliances, a public housing agency shall purchase
energy-efficient appliances that are Energy Star products or FEMP-
designated products, as such terms are defined in section 553 of the
National Energy Conservation Policy Act, unless the purchase of energy-
efficient appliances is not cost-effective to the agency.
SEC. 153. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``1 year after the date of the
enactment of the Energy Policy Act of 1992'' and
inserting ``September 30, 2006'';
(ii) in subparagraph (A), by striking ``and''
at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) rehabilitation and new construction of public
and assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing Act
of 1937 (42 U.S.C. 1437v), where such standards are
determined to be cost effective by the Secretary of
Housing and Urban Development.''; and
(B) in paragraph (2), by inserting ``, and, with
respect to rehabilitation and new construction of public
and assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing Act
of 1937 (42 U.S.C. 1437v), the 2003 International Energy
Conservation Code'' after ``90.1-1989')'';
(2) in subsection (b)--
(A) by striking ``within 1 year after the date of
the enactment of the Energy Policy Act of 1992'' and
inserting ``by September 30, 2006''; and
(B) by inserting ``, and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of
1937 (42 U.S.C. 1437v), the 2003 International Energy
Conservation Code'' before the period at the end; and
[[Page 119 STAT. 650]]
(3) in subsection (c)--
(A) in the heading, by inserting ``and the
International Energy Conservation Code'' after ``Model
Energy Code''; and
(B) by inserting ``, or, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of
1937 (42 U.S.C. 1437v), the 2003 International Energy
Conservation Code'' after ``1989''.
SEC. 154. <<NOTE: 42 USC 15842.>> ENERGY STRATEGY FOR HUD.
The Secretary of Housing and Urban Development shall develop and
implement an integrated strategy to reduce utility expenses through
cost-effective energy conservation and efficiency measures and energy
efficient design and construction of public and assisted housing. The
energy strategy shall include the development of energy reduction goals
and incentives for public housing agencies.
The <<NOTE: Reports. Deadlines.>> Secretary shall submit a report to
Congress, not later than 1 year after the date of the enactment of this
Act, on the energy strategy and the actions taken by the Department of
Housing and Urban Development to monitor the energy usage of public
housing agencies and shall submit an update every 2 years thereafter on
progress in implementing the strategy.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
SEC. 201. <<NOTE: 42 USC 15851.>> ASSESSMENT OF RENEWABLE ENERGY
RESOURCES.
(a) Resource Assessment.--Not <<NOTE: Deadlines.>> later than 6
months after the date of enactment of this Act, and each year
thereafter, the Secretary shall review the available assessments of
renewable energy resources within the United States, including solar,
wind, biomass, ocean (including tidal, wave, current, and thermal),
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 Act, 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 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.
[[Page 119 STAT. 651]]
(c) Authorization of Appropriations.--For <<NOTE: 42 USC 13311
note.>> the purposes of this section, there are authorized to be
appropriated to the Secretary $10,000,000 for each of fiscal years 2006
through 2010.
SEC. 202. 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--
(1) by striking the last sentence;
(2) by designating the first, second, and third sentences as
paragraphs (1), (2), and (3), respectively;
(3) in paragraph (3) (as so designated), by striking ``and
which satisfies'' and all that follows through ``deems
necessary''; and
(4) by adding at the end the following:
``(4)(A) Subject to subparagraph (B), if there are insufficient
appropriations to make full payments for electric production from all
qualified renewable energy facilities for a fiscal year, the Secretary
shall assign--
``(i) 60 percent of appropriated funds for the fiscal year
to facilities that use solar, wind, ocean (including tidal,
wave, current, and thermal), geothermal, or closed-loop
(dedicated energy crops) biomass technologies to generate
electricity; and
``(ii) 40 percent of appropriated funds for the fiscal year
to other projects.
``(B) After submitting to Congress an explanation of the reasons for
the alteration, the Secretary may alter the percentage requirements of
subparagraph (A).''.
(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 ``a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code of
1986, a State, Commonwealth, territory, or possession of the
United States, or the District of Columbia, or a political
subdivision thereof, an Indian tribal government or subdivision
thereof, or a Native Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602)),''; and
(2) by inserting ``landfill gas, livestock methane, ocean
(including tidal, wave, current, and thermal),'' 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,
2016''.
(d) Payment Period.--Section 1212(d) of the Energy Policy Act of
1992 (42 U.S.C. 13317(d)) is amended in the second sentence by inserting
``, or in which the Secretary determines 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 in the first sentence by
inserting ``landfill gas, livestock methane, ocean (including tidal,
wave, current, and thermal),'' after ``wind, biomass,''.
[[Page 119 STAT. 652]]
(f) Termination of Authority.--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, 2026''.
(g) Authorization of Appropriations.--Section 1212 of the Energy
Policy Act of 1992 (42 U.S.C. 13317) is amended by striking subsection
(g) and inserting the following:
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2006 through 2026, to remain available until
expended.''.
SEC. 203. <<NOTE: 42 USC 15852.>> FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The <<NOTE: President.>> President, acting through
the Secretary, 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, the
following amounts shall be renewable energy:
(1) Not less than 3 percent in fiscal years 2007 through
2009.
(2) Not less than 5 percent in fiscal years 2010 through
2012.
(3) Not less than 7.5 percent in fiscal year 2013 and each
fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any lignin waste
material that is segregated from other waste materials and is
determined to be nonhazardous by the Administrator of the
Environmental Protection Agency and any solid, nonhazardous,
cellulosic material that is derived from--
(A) any of the following forest-related resources:
mill residues, precommercial thinnings, slash, and
brush, or nonmerchantable material;
(B) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and construction
wood wastes (other than pressure-treated, chemically-
treated, or painted wood wastes), and landscape or
right-of-way tree trimmings, but not including municipal
solid waste (garbage), gas derived from the
biodegradation of solid waste, or paper that is commonly
recycled;
(C) agriculture wastes, including orchard tree
crops, vineyard, grain, legumes, sugar, and other crop
by-products or residues, and livestock waste nutrients;
or
(D) a plant that is grown exclusively as a fuel for
the production of electricity.
(2) Renewable energy.--The term ``renewable energy'' means
electric energy generated from solar, wind, biomass, landfill
gas, ocean (including tidal, wave, current, and thermal),
geothermal, municipal solid waste, or new hydroelectric
generation capacity achieved from increased efficiency or
additions of new capacity at an existing hydroelectric project.
(c) Calculation.--For purposes of determining compliance with the
requirement of this section, the amount of renewable energy shall be
doubled if--
(1) the renewable energy is produced and used on-site at a
Federal facility;
[[Page 119 STAT. 653]]
(2) the renewable energy is produced on Federal lands and
used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) and used at a Federal facility.
(d) Report.--Not later than April 15, 2007, and every 2 years
thereafter, the Secretary shall provide a report to Congress on the
progress of the Federal Government in meeting the goals established by
this section.
SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.
(a) In General.--Subchapter VI of chapter 31 of title 40, United
States Code, is amended by adding at the end the following:
``Sec. 3177. Use of photovoltaic energy in public buildings
``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Administrator of General Services may
establish a photovoltaic energy commercialization program for
the procurement and installation of photovoltaic solar electric
systems for electric production in new and existing public
buildings.
``(2) Purposes.--The purposes of the program shall be to
accomplish the following:
``(A) To accelerate the growth of a commercially
viable photovoltaic industry to make this energy system
available to the general public as an option which can
reduce the national consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption and
costs of the Federal Government.
``(C) To attain the goal of installing solar energy
systems in 20,000 Federal buildings by 2010, as
contained in the Federal Government's Million Solar Roof
Initiative of 1997.
``(D) To stimulate the general use within the
Federal Government of life-cycle costing and innovative
procurement methods.
``(E) To develop program performance data to support
policy decisions on future incentive programs with
respect to energy.
``(3) Acquisition of photovoltaic solar electric systems.--
``(A) In general.--The program shall provide for the
acquisition of photovoltaic solar electric systems and
associated storage capability for use in public
buildings.
``(B) Acquisition levels.--The acquisition of
photovoltaic electric systems shall be at a level
substantial enough to allow use of low-cost production
techniques with at least 150 megawatts (peak) cumulative
acquired during the 5 years of the program.
``(4) Administration.--The Administrator shall administer
the program and shall--
``(A) issue such rules and regulations as may be
appropriate to monitor and assess the performance and
operation of photovoltaic solar electric systems
installed pursuant to this subsection;
``(B) <<NOTE: Reports.>> develop innovative
procurement strategies for the acquisition of such
systems; and
[[Page 119 STAT. 654]]
``(C) transmit to Congress an annual report on the
results of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not <<NOTE: Deadline.>> later than 60
days after the date of enactment of this section, the
Administrator shall establish a photovoltaic solar energy
systems evaluation program to evaluate such photovoltaic solar
energy systems as are required in public buildings.
``(2) Program requirement.--In evaluating photovoltaic solar
energy systems under the program, the Administrator shall ensure
that such systems reflect the most advanced technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization program.--There
are authorized to be appropriated to carry out subsection (a)
$50,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.
``(2) Photovoltaic systems evaluation program.--There are
authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.''.
(b) Conforming Amendment.--The table of sections for the National
Energy Conservation Policy Act is amended by inserting after the item
relating to section 569 the following:
``Sec. 570. Use of photovoltaic energy in public buildings.''.
SEC. 205. BIOBASED PRODUCTS.
Section 9002(c)(1) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8102(c)(1)) is amended by inserting ``or such items that
comply with the regulations issued under section 103 of Public Law 100-
556 (42 U.S.C. 6914b-1)'' after ``practicable''.
SEC. 206. RENEWABLE ENERGY SECURITY.
(a) Weatherization Assistance.--Section 415(c) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)) is amended--
(1) in paragraph (1), by striking ``in paragraph (3)'' and
inserting ``in paragraphs (3) and (4)'';
(2) in paragraph (3), by striking ``$2,500 per dwelling unit
average provided in paragraph (1)'' and inserting ``dwelling
unit averages provided in paragraphs (1) and (4)''; and
(3) by adding at the end the following new paragraphs:
``(4) The expenditure of financial assistance provided under this
part for labor, weatherization materials, and related matters for a
renewable energy system shall not exceed an average of $3,000 per
dwelling unit.
``(5)(A) <<NOTE: Regulations.>> The Secretary shall by regulations--
``(i) establish the criteria which are to be used in
prescribing performance and quality standards under paragraph
(6)(A)(ii) or in specifying any form of renewable energy under
paragraph (6)(A)(i)(I); and
``(ii) establish a procedure under which a manufacturer of
an item may request the Secretary to certify that the item will
be treated, for purposes of this paragraph, as a renewable
energy system.
``(B) The Secretary shall make a final determination with respect to
any request filed under subparagraph (A)(ii) within 1
[[Page 119 STAT. 655]]
year after the filing of the request, together with any information
required to be filed with such request under subparagraph (A)(ii).
``(C) <<NOTE: Reports.>> Each month the Secretary shall publish a
report of any request under subparagraph (A)(ii) which has been denied
during the preceding month and the reasons for the denial.
``(D) The Secretary shall not specify any form of renewable energy
under paragraph (6)(A)(i)(I) unless the Secretary determines that--
``(i) there will be a reduction in oil or natural gas
consumption as a result of such specification;
``(ii) such specification will not result in an increased
use of any item which is known to be, or reasonably suspected to
be, environmentally hazardous or a threat to public health or
safety; and
``(iii) available Federal subsidies do not make such
specification unnecessary or inappropriate (in the light of the
most advantageous allocation of economic resources).
``(6) In this subsection--
``(A) the term `renewable energy system' means a system
which--
``(i) when installed in connection with a dwelling,
transmits or uses--
``(I) solar energy, energy derived from the
geothermal deposits, energy derived from biomass,
or any other form of renewable energy which the
Secretary specifies by regulations, for the
purpose of heating or cooling such dwelling or
providing hot water or electricity for use within
such dwelling; or
``(II) wind energy for nonbusiness residential
purposes;
``(ii) meets the performance and quality standards
(if any) which have been prescribed by the Secretary by
regulations;
``(iii) in the case of a combustion rated system,
has a thermal efficiency rating of at least 75 percent;
and
``(iv) in the case of a solar system, has a thermal
efficiency rating of at least 15 percent; and
``(B) the term `biomass' means any organic matter that is
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and residues,
plants (including aquatic plants), grasses, residues, fibers,
and animal wastes, municipal wastes, and other waste
materials.''.
(b) District Heating and Cooling Programs.--Section 172 of the
Energy Policy Act of 1992 (42 U.S.C. 13451 note) is amended--
(1) in subsection (a)--
(A) by striking ``and'' at the end of paragraph (3);
(B) by striking the period at the end of paragraph
(4) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(5) evaluate the use of renewable energy systems (as such
term is defined in section 415(c) of the Energy Conservation and
Production Act (42 U.S.C. 6865(c))) in residential buildings.'';
and
(2) in subsection (b), by striking ``this Act'' and
inserting ``the Energy Policy Act of 2005''.
(c) Rebate <<NOTE: 42 USC 15853.>> Program.--
[[Page 119 STAT. 656]]
(1) Establishment.--The Secretary shall establish a program
providing rebates for consumers for expenditures made for the
installation of a renewable energy system in connection with a
dwelling unit or small business.
(2) Amount of rebate.--Rebates provided under the program
established under paragraph (1) shall be in an amount not to
exceed the lesser of--
(A) 25 percent of the expenditures described in
paragraph (1) made by the consumer; or
(B) $3,000.
(3) Definition.--For purposes of this subsection, the term
``renewable energy system'' has the meaning given that term in
section 415(c)(6)(A) of the Energy Conservation and Production
Act (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) of
this section.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection, to remain available until expended--
(A) $150,000,000 for fiscal year 2006;
(B) $150,000,000 for fiscal year 2007;
(C) $200,000,000 for fiscal year 2008;
(D) $250,000,000 for fiscal year 2009; and
(E) $250,000,000 for fiscal year 2010.
(d) Renewable Fuel Inventory.--
Not <<NOTE: Deadline. Reports.>> later than 180 days after the date of
enactment of this Act, the Secretary shall transmit to Congress a report
containing--
(1) an inventory of renewable fuels available for consumers;
and
(2) a projection of future inventories of renewable fuels
based on the incentives provided in this section.
SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.
There <<NOTE: Appropriation authorization.>> is authorized to be
appropriated to the General Services Administration to install a
photovoltaic system, as set forth in the Sun Wall Design Project, for
the headquarters building of the Department of Energy located at 1000
Independence Avenue Southwest in the District of Columbia, commonly know
as the Forrestal Building, $20,000,000 for fiscal year 2006. Such sums
shall remain available until expended.
SEC. 208. <<NOTE: 42 USC 15854.>> SUGAR CANE ETHANOL PROGRAM.
(a) Definition of Program.--In this section, the term ``program''
means the Sugar Cane Ethanol Program established by subsection (b).
(b) Establishment.--There is established within the Environmental
Protection Agency a program to be known as the ``Sugar Cane Ethanol
Program''.
(c) Project.--
(1) In general.--Subject to the availability of
appropriations under subsection (d), in carrying out the
program, the Administrator of the Environmental Protection
Agency shall establish a project that is--
(A) carried out in multiple States--
(i) in each of which is produced cane sugar
that is eligible for loans under section 156 of
the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272), or a similar subsequent
authority; and
[[Page 119 STAT. 657]]
(ii) at the option of each such State, that
have an incentive program that requires the use of
ethanol in the State; and
(B) designed to study the production of ethanol from
cane sugar, sugarcane, and sugarcane byproducts.
(2) Requirements.--A project described in paragraph (1)
shall--
(A) be limited to sugar producers and the production
of ethanol in the States of Florida, Louisiana, Texas,
and Hawaii, divided equally among the States, to
demonstrate that the process may be applicable to cane
sugar, sugarcane, and sugarcane byproducts;
(B) include information on the ways in which the
scale of production may be replicated once the sugar
cane industry has located sites for, and constructed,
ethanol production facilities; and
(C) not last more than 3 years.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $36,000,000, to remain available
until expended.
SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.
The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601
et seq.) is amended in title VI by adding at the end the following:
``SEC. 609. <<NOTE: 7 USC 918c.>> RURAL AND REMOTE COMMUNITIES
ELECTRIFICATION GRANTS.
``(a) Definitions.--In this section:
``(1) The term `eligible grantee' means a local government
or municipality, peoples' utility district, irrigation district,
and cooperative, nonprofit, or limited-dividend association in a
rural area.
``(2) The term `incremental hydropower' means additional
generation achieved from increased efficiency after January 1,
2005, at a hydroelectric dam that was placed in service before
January 1, 2005.
``(3) The term `renewable energy' means electricity
generated from--
``(A) a renewable energy source; or
``(B) hydrogen, other than hydrogen produced from a
fossil fuel, that is produced from a renewable energy
source.
``(4) The term `renewable energy source' means--
``(A) wind;
``(B) ocean waves;
``(C) biomass;
``(D) solar;
``(E) landfill gas;
``(F) incremental hydropower;
``(G) livestock methane; or
``(H) geothermal energy.
``(5) The term `rural area' means a city, town, or
unincorporated area that has a population of not more than
10,000 inhabitants.
``(b) Grants.--The Secretary, in consultation with the Secretary of
Agriculture and the Secretary of the Interior, may provide grants under
this section to eligible grantees for the purpose of--
[[Page 119 STAT. 658]]
``(1) increasing energy efficiency, siting or upgrading
transmission and distribution lines serving rural areas; or
``(2) providing or modernizing electric generation
facilities that serve rural areas.
``(c) Grant Administration.--(1) The Secretary shall make grants
under this section based on a determination of cost-effectiveness and
the most effective use of the funds to achieve the purposes described in
subsection (b).
``(2) For each fiscal year, the Secretary shall allocate grant funds
under this section equally between the purposes described in paragraphs
(1) and (2) of subsection (b).
``(3) In making grants for the purposes described in subsection
(b)(2), the Secretary shall give preference to renewable energy
facilities.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $20,000,000 for
each of fiscal years 2006 through 2012.''.
SEC. 210. <<NOTE: 42 USC 15855.>> GRANTS TO IMPROVE THE COMMERCIAL VALUE
OF FOREST BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, AND OTHER COMMERCIAL PURPOSES.
(a) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means nonmerchantable
materials or precommercial thinnings that are byproducts of
preventive treatments, such as trees, wood, brush, thinnings,
chips, and slash, that are removed--
(A) to reduce hazardous fuels;
(B) to reduce or contain disease or insect
infestation; or
(C) to restore forest health.
(2) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4(e) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e)).
(3) Nonmerchantable.--For purposes of subsection (b), the
term ``nonmerchantable'' means that portion of the byproducts of
preventive treatments that would not otherwise be used for
higher value products.
(4) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary
concerned);
(C) an Indian tribe;
(D) a small business or a corporation that is
incorporated in the United States; and
(E) a nonprofit organization.
(5) Preferred community.--The term ``preferred community''
means--
(A) any Indian tribe;
(B) any town, township, municipality, or other
similar unit of local government (as determined by the
Secretary concerned) that--
(i) has a population of not more than 50,000
individuals; and
(ii) the Secretary concerned, in the sole
discretion of the Secretary concerned, determines
contains or is located near Federal or Indian
land, the condition of
[[Page 119 STAT. 659]]
which is at significant risk of catastrophic
wildfire, disease, or insect infestation or which
suffers from disease or insect infestation; or
(C) any county that--
(i) is not contained within a metropolitan
statistical area; and
(ii) the Secretary concerned, in the sole
discretion of the Secretary concerned, determines
contains or is located near Federal or Indian
land, the condition of which is at significant
risk of catastrophic wildfire, disease, or insect
infestation or which suffers from disease or
insect infestation.
(6) Secretary concerned.--The term ``Secretary concerned''
means the Secretary of Agriculture or the Secretary of the
Interior.
(b) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
any person in a preferred community that owns or operates a
facility that uses biomass as a raw material to produce electric
energy, sensible heat, or transportation fuels to offset the
costs incurred to purchase biomass for use by such facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant recipient
shall keep such records as the Secretary concerned may require
to fully and correctly disclose the use of the grant funds and
all transactions involved in the purchase of biomass. Upon
notice by a representative of the Secretary concerned, the grant
recipient shall afford the representative reasonable access to
the facility that purchases or uses biomass and an opportunity
to examine the inventory and records of the facility.
(c) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
persons to offset the cost of projects to develop or research
opportunities to improve the use of, or add value to, biomass.
In making such grants, the Secretary concerned shall give
preference to persons in preferred communities.
(2) Selection.--The Secretary concerned shall select a grant
recipient under paragraph (1) after giving consideration to--
(A) the anticipated public benefits of the project,
including the potential to develop thermal or electric
energy resources or affordable energy;
(B) opportunities for the creation or expansion of
small businesses and micro-businesses;
(C) the potential for new job creation;
(D) the potential for the project to improve
efficiency or develop cleaner technologies for biomass
utilization; and
(E) the potential for the project to reduce the
hazardous fuels from the areas in greatest need of
treatment.
(3) Grant amount.--A grant under this subsection may not
exceed $500,000.
(d) Authorization of Appropriations.--There are authorized to be
appropriated $50,000,000 for each of the fiscal years 2006 through 2016
to carry out this section.
[[Page 119 STAT. 660]]
(e) Report.--Not later than October 1, 2010, the Secretary of
Agriculture, in consultation with the Secretary of the Interior, shall
submit to the Committee on Energy and Natural Resources and the
Committee on Agriculture, Nutrition, and Forestry of the Senate, and the
Committee on Resources, the Committee on Energy and Commerce, and the
Committee on Agriculture of the House of Representatives, a report
describing the results of the grant programs authorized by this section.
The report shall include the following:
(1) An identification of the size, type, and use of biomass
by persons that receive grants under this section.
(2) The distance between the land from which the biomass was
removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations.
SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF ELECTRICITY
FROM RENEWABLE ENERGY RESOURCES ON PUBLIC LANDS.
It is the sense of the Congress that the Secretary of the Interior
should, before the end of the 10-year period beginning on the date of
enactment of this Act, seek to have approved non-hydropower renewable
energy projects located on the public lands with a generation capacity
of at least 10,000 megawatts of electricity.
Subtitle B--Geothermal <<NOTE: John Rishel Geothermal Steam Act
Amendments of 2005.>> Energy
SEC. 221. <<NOTE: 30 USC 1001 note.>> SHORT TITLE.
This subtitle may be cited as the ``John Rishel Geothermal Steam Act
Amendments of 2005''.
SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.
Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is
amended to read as follows:
``SEC. 4. LEASING PROCEDURES.
``(a) Nominations.--The Secretary shall accept nominations of land
to be leased at any time from qualified companies and individuals under
this Act.
``(b) Competitive Lease Sale Required.--
``(1) In general.--Except as otherwise specifically provided
by this Act, all land to be leased that is not subject to
leasing under subsection (c) shall be leased as provided in this
subsection to the highest responsible qualified bidder, as
determined by the Secretary.
``(2) Competitive lease sales.--The Secretary shall hold a
competitive lease sale at least once every 2 years for land in a
State that has nominations pending under subsection (a) if the
land is otherwise available for leasing.
``(3) Lands subject to mining claims.--Lands that are
subject to a mining claim for which a plan of operations has
been approved by the relevant Federal land management agency may
be available for noncompetitive leasing under this section to
the mining claim holder.
``(c) Noncompetitive Leasing.--The Secretary shall make available
for a period of 2 years for noncompetitive leasing any
[[Page 119 STAT. 661]]
tract for which a competitive lease sale is held, but for which the
Secretary does not receive any bids in a competitive lease sale.
``(d) Pending Lease Applications.--
``(1) In general.--It shall be a priority for the Secretary,
and for the Secretary of Agriculture with respect to National
Forest Systems land, to ensure timely completion of
administrative actions, including amendments to applicable
forest plans and resource management plans, necessary to process
applications for geothermal leasing pending on the date of
enactment of this subsection. All future forest plans and
resource management plans for areas with high geothermal
resource potential shall consider geothermal leasing and
development.
``(2) Administration.--An application described in paragraph
(1) and any lease issued pursuant to the application--
``(A) except as provided in subparagraph (B), shall
be subject to this section as in effect on the day
before the date of enactment of this paragraph; or
``(B) at the election of the applicant, shall be
subject to this section as in effect on the effective
date of this paragraph.
``(e) Leases Sold as a Block.--If information is available to the
Secretary indicating a geothermal resource that could be produced as 1
unit can reasonably be expected to underlie more than 1 parcel to be
offered in a competitive lease sale, the parcels for such a resource may
be offered for bidding as a block in the competitive lease sale.''.
SEC. 223. DIRECT USE.
(a) Fees for Direct Use.--Section 5 of the Geothermal Steam Act of
1970 (30 U.S.C. 1004) is amended--
(1) in subsection (c), by redesignating paragraphs (1) and
(2) as subparagraphs (A) and (B), respectively;
(2) by redesignating subsections (a) through (d) as
paragraphs (1) through (4), respectively;
(3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
and
(4) by adding at the end the following:
``(b) Direct Use.--
``(1) In general.--
Notwithstanding <<NOTE: Fees.>> subsection (a)(1), the Secretary
shall establish a schedule of fees, in lieu of royalties for
geothermal resources, that a lessee or its affiliate--
``(A) uses for a purpose other than the commercial
generation of electricity; and
``(B) does not sell.
``(2) Schedule of fees.--The schedule of fees--
``(A) may be based on the quantity or thermal
content, or both, of geothermal resources used;
``(B) shall ensure a fair return to the United
States for use of the resource; and
``(C) shall encourage development of the resource.
``(3) State, tribal, or local governments.--If a State,
tribal, or local government is the lessee and uses geothermal
resources without sale and for public purposes other than
commercial generation of electricity, the Secretary shall charge
only a nominal fee for use of the resource.
[[Page 119 STAT. 662]]
``(4) Final regulation.--In issuing any final regulation
establishing a schedule of fees under this subsection, the
Secretary shall seek--
``(A) to provide lessees with a simplified
administrative system;
``(B) to facilitate development of direct use of
geothermal resources; and
``(C) to contribute to sustainable economic
development opportunities in the area.''.
(b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act
of 1970 (30 U.S.C. 1003) (as amended by section 222) is further amended
by adding at the end the following:
``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify areas in
which the land to be leased under this Act exclusively for direct use of
geothermal resources, without sale for purposes other than commercial
generation of electricity, may be leased to any qualified applicant that
first applies for such a lease under regulations issued by the
Secretary, if the Secretary--
``(1) <<NOTE: Notice. Deadline.>> publishes a notice of the
land proposed for leasing not later than 90 days before the date
of the issuance of the lease;
``(2) does not receive during the 90-day period beginning on
the date of the publication any nomination to include the land
concerned in the next competitive lease sale; and
``(3) determines there is no competitive interest in the
geothermal resources in the land to be leased.
``(g) Area Subject to Lease for Direct Use.--
``(1) In general.--Subject to paragraph (2), a geothermal
lease for the direct use of geothermal resources shall cover not
more than the quantity of acreage determined by the Secretary to
be reasonably necessary for the proposed use.
``(2) Limitations.--The quantity of acreage covered by the
lease shall not exceed the limitations established under section
7.''.
(c) Application of New Lease Terms.--The <<NOTE: 30 USC 1004
note.>> schedule of fees established under the amendment made by
subsection (a)(4) shall apply with respect to payments under a lease
converted under this subsection that are due and owing, and have been
paid, on or after July 16, 2003. This subsection shall not require the
refund of royalties paid to a State under section 20 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of
this Act.
SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.
(a) Royalty.--Section 5 of the Geothermal Steam Act of 1970 (30
U.S.C. 1004) is further amended--
(1) in subsection (a) by striking paragraph (1) and
inserting the following:
``(1) a royalty on electricity produced using geothermal
resources, other than direct use of geothermal resources, that
shall be--
``(A) not less than 1 percent and not more than 2.5
percent of the gross proceeds from the sale of
electricity produced from such resources during the
first 10 years of production under the lease; and
[[Page 119 STAT. 663]]
``(B) not less than 2 and not more than 5 percent of
the gross proceeds from the sale of electricity produced
from such resources during each year after such 10-year
period;''; and
(2) by adding at the end the following:
``(c) Final Regulation Establishing Royalty Rates.--In issuing any
final regulation establishing royalty rates under this section, the
Secretary shall seek--
``(1) to provide lessees a simplified administrative system;
``(2) to encourage new development; and
``(3) to achieve the same level of royalty revenues over a
10-year period as the regulation in effect on the date of
enactment of this subsection.
``(d) Credits for In-Kind Payments of Electricity.--The Secretary
may provide to a lessee a credit against royalties owed under this Act,
in an amount equal to the value of electricity provided under contract
to a State or county government that is entitled to a portion of such
royalties under section 20 of this Act, section 35 of the Mineral
Leasing Act (30 U.S.C. 191), except as otherwise provided by this
section, or section 6 of the Mineral Leasing Act for Acquired Lands (30
U.S.C. 355), if--
``(1) the Secretary has approved in advance the contract
between the lessee and the State or county government for such
in-kind payments;
``(2) the contract establishes a specific methodology to
determine the value of such credits; and
``(3) the maximum credit will be equal to the royalty value
owed to the State or county that is a party to the contract and
the electricity received will serve as the royalty payment from
the Federal Government to that entity.''.
(b) Disposal of Moneys From Sales, Bonuses, Royalties, and Rents.--
Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is
amended to read as follows:
``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND
ROYALTIES.
``(a) In General.--Except with respect to lands in the State of
Alaska, all monies received by the United States from sales, bonuses,
rentals, and royalties under this Act shall be paid into the Treasury of
the United States. Of amounts deposited under this subsection, subject
to the provisions of subsection (b) of section 35 of the Mineral Leasing
Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act--
``(1) 50 percent shall be paid to the State within the
boundaries of which the leased lands or geothermal resources are
or were located; and
``(2) 25 percent shall be paid to the county within the
boundaries of which the leased lands or geothermal resources are
or were located.
``(b) Use of Payments.--Amounts paid to a State or county under
subsection (a) shall be used consistent with the terms of section 35 of
the Mineral Leasing Act (30 U.S.C. 191).''.
(c) Near-Term Production <<NOTE: 30 USC 1004 note.>> Incentive for
Existing Leases.--
(1) In general.--Notwithstanding section 5(a) of the
Geothermal Steam Act of 1970, the royalty required to be paid
shall be 50 percent of the amount of the royalty otherwise
required, on any lease issued before the date of enactment
[[Page 119 STAT. 664]]
of this Act that does not convert to new royalty terms under
subsection (e)--
(A) with respect to commercial production of energy
from a facility that begins such production in the 6-
year period beginning on the date of enactment of this
Act; or
(B) on qualified expansion geothermal energy.
(2) 4-year application.--Paragraph (1) applies only to new
commercial production of energy from a facility in the first 4
years of such production.
(d) Definition of Qualified Expansion Geothermal Energy.--In this
section, the term ``qualified expansion geothermal energy'' means
geothermal energy produced from a generation facility for which--
(1) the production is increased by more than 10 percent as a
result of expansion of the facility carried out in the 6-year
period beginning on the date of enactment of this Act; and
(2) such production increase is greater than 10 percent of
the average production by the facility during the 5-year period
preceding the expansion of the facility (as such average is
adjusted to reflect any trend in changes in production during
that period).
(e) Royalty Under Existing Leases.--
(1) In general.--Any lessee under a lease issued under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before the
date of enactment of this Act may, within the time period
specified in paragraph (2), submit to the Secretary of the
Interior a request to modify the terms of the lease relating to
payment of royalties to provide--
(A) in the case of a lease that meets the
requirements of subsection (b) of section 5 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
amended by section 223), that royalties be based on the
schedule of fees established under that section; and
(B) in the case of any other lease, that royalties
be computed on a percentage of the gross proceeds from
the sale of electricity, at a royalty rate that is
expected to yield total royalty payments equivalent to
payments that would have been received for comparable
production under the royalty rate in effect for the
lease before the date of enactment of this subsection.
(2) Timing.--A <<NOTE: Deadlines.>> request for a
modification under paragraph (1) shall be submitted to the
Secretary of the Interior by the date that is not later than--
(A) in the case of a lease for direct use, 18 months
after the effective date of the schedule of fees
established by the Secretary of the Interior under
section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004); or
(B) in the case of any other lease, 18 months after
the effective date of the final regulation issued under
subsection (a).
(3) Application of modification.--If the lessee requests
modification of a lease under paragraph (1)--
(A) <<NOTE: Deadline.>> the Secretary of the
Interior shall, within 180 days after the receipt of the
request for modification, modify the lease to comply
with--
[[Page 119 STAT. 665]]
(i) in the case of a lease for direct use, the
schedule of fees established by the Secretary
under section 5 of the Geothermal Steam Act of
1970 (30 U.S.C. 1004); or
(ii) in the case of any other lease, the
royalty for the lease established under paragraph
(1)(B); and
(B) the modification shall apply to any use of
geothermal resources to which subsection (a) applies
that occurs after the date of the modification.
(4) Consultation.--The Secretary of the Interior shall
consult with the State and local governments affected by any
proposed changes in lease royalty terms under this subsection.
SEC. 225. <<NOTE: 42 USC 15871.>> COORDINATION OF GEOTHERMAL LEASING AND
PERMITTING ON FEDERAL LANDS.
(a) In General.--Not <<NOTE: Deadline. Memorandum.>> later than 180
days after the date of enactment of this section, the Secretary of the
Interior and the Secretary of Agriculture shall enter into and submit to
Congress a memorandum of understanding in accordance with this section,
the Geothermal Steam Act of 1970 (as amended by this Act), and other
applicable laws, regarding coordination of leasing and permitting for
geothermal development of public lands and National Forest System lands
under their respective jurisdictions.
(b) Lease and Permit Applications.--The memorandum of understanding
shall--
(1) establish an administrative procedure for processing
geothermal lease applications, including lines of authority,
steps in application processing, and time limits for application
procession;
(2) establish a 5-year program for geothermal leasing of
lands in the National Forest System, and a process for updating
that program every 5 years; and
(3) <<NOTE: Effective date.>> establish a program for
reducing the backlog of geothermal lease application pending on
January 1, 2005, by 90 percent within the 5-year period
beginning on the date of enactment of this Act, including, as
necessary, by issuing leases, rejecting lease applications for
failure to comply with the provisions of the regulations under
which they were filed, or determining that an original applicant
(or the applicant's assigns, heirs, or estate) is no longer
interested in pursuing the lease application.
(c) Data Retrieval System.--The memorandum of understanding shall
establish a joint data retrieval system that is capable of tracking
lease and permit applications and providing to the applicant information
as to their status within the Departments of the Interior and
Agriculture, including an estimate of the time required for
administrative action.
SEC. 226. <<NOTE: Deadline. 42 USC 15872.>> ASSESSMENT OF GEOTHERMAL
ENERGY POTENTIAL.
Not later than 3 years after the date of enactment of this Act and
thereafter as the availability of data and developments in technology
warrants, the Secretary of the Interior, acting through the Director of
the United States Geological Survey and in cooperation with the States,
shall--
(1) update the Assessment of Geothermal Resources made
during 1978; and
(2) submit to Congress the updated assessment.
[[Page 119 STAT. 666]]
SEC. 227. COOPERATIVE OR UNIT PLANS.
Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 1017) is
amended to read as follows:
``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.
``(a) Adoption of Units by Lessees.--
``(1) In general.--For the purpose of more properly
conserving the natural resources of any geothermal reservoir,
field, or like area, or any part thereof (whether or not any
part of the geothermal reservoir, field, or like area, is
subject to any cooperative plan of development or operation
(referred to in this section as a `unit agreement')), lessees
thereof and their representatives may unite with each other, or
jointly or separately with others, in collectively adopting and
operating under a unit agreement for the reservoir, field, or
like area, or any part thereof, including direct use resources,
if determined and certified by the Secretary to be necessary or
advisable in the public interest.
``(2) Majority interest of single leases.--A majority
interest of owners of any single lease shall have the authority
to commit the lease to a unit agreement.
``(3) Initiative of secretary.--The Secretary may also
initiate the formation of a unit agreement, or require an
existing Federal lease to commit to a unit agreement, if in the
public interest.
``(4) Modification of lease requirements by secretary.--
``(A) In general.--The Secretary may, in the
discretion of the Secretary and with the consent of the
holders of leases involved, establish, alter, change, or
revoke rates of operations (including drilling,
operations, production, and other requirements) of the
leases and make conditions with respect to the leases,
with the consent of the lessees, in connection with the
creation and operation of any such unit agreement as the
Secretary may consider necessary or advisable to secure
the protection of the public interest.
``(B) Unlike terms or rates.--Leases with unlike
lease terms or royalty rates shall not be required to be
modified to be in the same unit.
``(b) Requirement of Plans Under New Leases.--The Secretary may--
``(1) provide that geothermal leases issued under this Act
shall contain a provision requiring the lessee to operate under
a unit agreement; and
``(2) prescribe the unit agreement under which the lessee
shall operate, which shall adequately protect the rights of all
parties in interest, including the United States.
``(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any unit agreement
authorized by this section that applies to land owned by the United
States contain a provision under which authority is vested in the
Secretary, or any person, committee, or State or Federal officer or
agency as may be designated in the unit agreement to alter or modify,
from time to time, the rate of prospecting and development and the
quantity and rate of production under the unit agreement.
[[Page 119 STAT. 667]]
``(d) Exclusion From Determination of Holding or Control.--Any land
that is subject to a unit agreement approved or prescribed by the
Secretary under this section shall not be considered in determining
holdings or control under section 7.
``(e) Pooling of Certain Land.--If separate tracts of land cannot be
independently developed and operated to use geothermal resources
pursuant to any section of this Act--
``(1) the land, or a portion of the land, may be pooled with
other land, whether or not owned by the United States, for
purposes of development and operation under a communitization
agreement providing for an apportionment of production or
royalties among the separate tracts of land comprising the
production unit, if the pooling is determined by the Secretary
to be in the public interest; and
``(2) operation or production pursuant to the
communitization agreement shall be treated as operation or
production with respect to each tract of land that is subject to
the communitization agreement.
``(f) Unit Agreement Review.--
``(1) In general.--Not <<NOTE: Deadlines.>> later than 5
years after the date of approval of any unit agreement and at
least every 5 years thereafter, the Secretary shall--
``(A) review each unit agreement; and
``(B) after notice and opportunity for comment,
eliminate from inclusion in the unit agreement any land
that the Secretary determines is not reasonably
necessary for unit operations under the unit agreement.
``(2) Basis for elimination.--The elimination shall--
``(A) be based on scientific evidence; and
``(B) occur only if the elimination is determined by
the Secretary to be for the purpose of conserving and
properly managing the geothermal resource.
``(3) Extension.--Any land eliminated under this subsection
shall be eligible for an extension under section 6(g) if the
land meets the requirements for the extension.
``(g) Drilling or Development Contracts.--
``(1) In general.--The Secretary may, on such conditions as
the Secretary may prescribe, approve drilling or development
contracts made by one or more lessees of geothermal leases, with
one or more persons, associations, or corporations if, in the
discretion of the Secretary, the conservation of natural
resources or the public convenience or necessity may require or
the interests of the United States may be best served by the
approval.
``(2) Holdings or control.--Each lease operated under an
approved drilling or development contract, and interest under
the contract, shall be excepted in determining holdings or
control under section 7.
``(h) Coordination With State Governments.--The Secretary shall
coordinate unitization and pooling activities with appropriate State
agencies.''.
SEC. 228. ROYALTY ON BYPRODUCTS.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
amended by section 223(a)) is further amended in subsection (a) by
striking paragraph (2) and inserting the following:
[[Page 119 STAT. 668]]
``(2) a royalty on any byproduct that is a mineral specified
in the first section of the Mineral Leasing Act (30 U.S.C. 181),
and that is derived from production under the lease, at the rate
of the royalty that applies under that Act to production of the
mineral under a lease under that Act;''.
SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS,
RENTALS, AND ROYALTIES.
Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is
amended in the <<NOTE: 30 USC 1007.>> second sentence by striking
``period, and in no event'' and all that follows through the end of the
sentence and inserting ``period''.
SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
amended by sections 223 and 224) is further amended--
(1) in subsection (a)(2) by inserting ``and'' after the
semicolon at the end;
(2) in subsection (a)(3) by striking ``; and'' and inserting
a period;
(3) by striking paragraph (4) of subsection (a); and
(4) by adding at the end the following:
``(e) Crediting of Rental Toward Royalty.--Any annual rental under
this section that is paid with respect to a lease before the first day
of the year for which the annual rental is owed shall be credited to the
amount of royalty that is required to be paid under the lease for that
year.''.
SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is
amended--
(1) by striking so much as precedes subsection (c), and
striking subsections (e), (g), (h), (i), and (j);
(2) by redesignating subsections (c), (d), and (f) in order
as subsections (g), (h), and (i); and
(3) by inserting before subsection (g), as so redesignated,
the following:
``SEC. 6. <<NOTE: Regulations.>> LEASE TERM AND WORK COMMITMENT
REQUIREMENTS.
``(a) In General.--
``(1) Primary term.--A geothermal lease shall be for a
primary term of 10 years.
``(2) Initial extension.--The Secretary shall extend the
primary term of a geothermal lease for 5 years if, for each year
after the 10th year of the lease--
``(A) the Secretary determined under subsection (b)
that the lessee satisfied the work commitment
requirements that applied to the lease for that year; or
``(B) the lessee paid in annual payments accordance
with subsection (c).
``(3) Additional extension.--The Secretary shall extend the
primary term of a geothermal lease (after an initial extension
under paragraph (2)) for an additional 5 years if, for each year
of the initial extension under paragraph (2), the Secretary
determined under subsection (b) that the lessee satisfied the
minimum work requirements that applied to the lease for that
year.
[[Page 119 STAT. 669]]
``(b) Requirement to Satisfy Annual Minimum Work Requirement.--
``(1) In general.--The lessee for a geothermal lease shall,
for each year after the 10th year of the lease, satisfy minimum
work requirements prescribed by the Secretary that apply to the
lease for that year.
``(2) Prescription of minimum work requirements.--The
Secretary shall issue regulations prescribing minimum work
requirements for geothermal leases, that--
``(A) establish a geothermal potential; and
``(B) if a geothermal potential has been
established, confirm the existence of producible
geothermal resources.
``(c) Payments in Lieu of Minimum Work Requirements.--In lieu of the
minimum work requirements set forth in subsection (b)(2), the Secretary
shall by regulation establish minimum annual payments which may be made
by the lessee for a limited number of years that the Secretary
determines will not impair achieving diligent development of the
geothermal resource, but in no event shall the number of years exceed
the duration of the extension period provided in subsection (a).
``(d) Transition Rules for Leases Issued Prior to Enactment of
Energy Policy Act of 2005.--The Secretary shall by regulation establish
transition rules for leases issued before the date of the enactment of
this subsection, including terms under which a lease that is near the
end of its term on the date of enactment of this subsection may be
extended for up to 2 years--
``(1) to allow achievement of production under the lease; or
``(2) to allow the lease to be included in a producing unit.
``(e) Geothermal Lease Overlying Mining Claim.--
``(1) Exemption.--The lessee for a geothermal lease of an
area overlying an area subject to a mining claim for which a
plan of operations has been approved by the relevant Federal
land management agency is exempt from annual work requirements
established under this Act, if development of the geothermal
resource subject to the lease would interfere with the mining
operations under such claim.
``(2) Termination of exemption.--An exemption under this
paragraph expires upon the termination of the mining operations.
``(f) Termination of Application of Requirements.--Minimum work
requirements prescribed under this section shall not apply to a
geothermal lease after the date on which the geothermal resource is
utilized under the lease in commercial quantities.''.
SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
amended by sections 223, 224, and 230) is further amended by adding at
the end the following:
``(f) Advanced Royalties Required for Cessation of Production.--
``(1) In general.--Subject to paragraphs (2) and (3), if, at
any time after commercial production under a lease is achieved,
production ceases for any reason, the lease shall remain in full
force and effect for a period of not more than
[[Page 119 STAT. 670]]
an aggregate number of 10 years beginning on the date production
ceases, if, during the period in which production is ceased, the
lessee pays royalties in advance at the monthly average rate at
which the royalty was paid during the period of production.
``(2) Reduction.--The amount of any production royalty paid
for any year shall be reduced (but not below 0) by the amount of
any advanced royalties paid under the lease to the extent that
the advance royalties have not been used to reduce production
royalties for a prior year.
``(3) Exceptions.--Paragraph (1) shall not apply if the
cessation in production is required or otherwise caused by--
``(A) the Secretary;
``(B) the Secretary of the Air Force;
``(C) the Secretary of the Army;
``(D) the Secretary of the Navy;
``(E) a State or a political subdivision of a State;
or
``(F) a force majeure.''.
SEC. 233. ANNUAL RENTAL.
(a) Annual Rental Rate.--Section 5 of the Geothermal Steam Act of
1970 (30 U.S.C. 1004) (as amended by section 223(a)) is further amended
in subsection (a) by striking paragraph (3) and inserting the following:
``(3) payment in advance of an annual rental of not less
than--
``(A) for each of the 1st through 10th years of the
lease--
``(i) in the case of a lease awarded in a
noncompetitive lease sale, $1 per acre or fraction
thereof; or
``(ii) in the case of a lease awarded in a
competitive lease sale, $2 per acre or fraction
thereof for the 1st year and $3 per acre or
fraction thereof for each of the 2nd through 10th
years; and
``(B) for each year after the 10th year of the
lease, $5 per acre or fraction thereof;''.
(b) Termination of Lease for Failure to Pay Rental.--Section 5 of
the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by
sections 223, 224, 230, and 232) is further amended by adding at the end
the following:
``(g) Termination of Lease for Failure to Pay Rental.--
``(1) In general.--The Secretary shall terminate any lease
with respect to which rental is not paid in accordance with this
Act and the terms of the lease under which the rental is
required, on the expiration of the 45-day period beginning on
the date of the failure to pay the rental.
``(2) Notification.--The Secretary shall promptly notify a
lessee that has not paid rental required under the lease that
the lease will be terminated at the end of the period referred
to in paragraph (1).
``(3) Reinstatement.--A lease that would otherwise terminate
under paragraph (1) shall not terminate under that paragraph if
the lessee pays to the Secretary, before the end of the period
referred to in paragraph (1), the amount of rental due plus a
late fee equal to 10 percent of the amount.''.
[[Page 119 STAT. 671]]
SEC. 234. <<NOTE: 42 USC 15873.>> DEPOSIT AND USE OF GEOTHERMAL LEASE
REVENUES FOR 5 FISCAL YEARS.
(a) Deposit of Geothermal Resources Leases.--Notwithstanding any
other provision of law, amounts received by the United States in the
first 5 fiscal years beginning after the date of enactment of this Act
as rentals, royalties, and other payments required under leases under
the Geothermal Steam Act of 1970, excluding funds required to be paid to
State and county governments, shall be deposited into a separate account
in the Treasury.
(b) Use of Deposits.--Amounts deposited under subsection (a) shall
be available to the Secretary of the Interior for expenditure, without
further appropriation and without fiscal year limitation, to implement
the Geothermal Steam Act of 1970 and this Act.
(c) Transfer of Funds.--For the purposes of coordination and
processing of geothermal leases and geothermal use authorizations on
Federal land the Secretary of the Interior may authorize the expenditure
or transfer of such funds as are necessary to the Forest Service.
SEC. 235. ACREAGE LIMITATIONS.
Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is
amended--
(1) by striking ``sec. 7.'', and by inserting immediately
before and above the first paragraph the following:
``SEC. 7. ACREAGE LIMITATIONS.'';
(2) in the first paragraph--
(A) by striking ``two thousand five hundred and
sixty acres'' and inserting ``5,120 acres''; and
(B) by striking ``twenty thousand four hundred and
eighty acres'' and inserting ``51,200 acres''; and
(3) by striking the second paragraph.
SEC. 236. TECHNICAL AMENDMENTS.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is further
amended as follows:
(1) <<NOTE: 30 USC 1001, 1002, 1005, 1020, 1022, 1024-
1026.>> By striking ``geothermal steam and associated geothermal
resources'' each place it appears and inserting ``geothermal
resources''.
(2) Section 2 (30 U.S.C. 1001) is amended by adding at the
end the following:
``(g) `direct use' means utilization of geothermal resources
for commercial, residential, agricultural, public facilities, or
other energy needs other than the commercial production of
electricity; and''.
(3) Section 21 (30 U.S.C. 1020) is amended by striking ``(a)
Within one hundred'' and all that follows through ``(b)
Geothermal'' and inserting ``Geothermal''.
(4) The first section (30 U.S.C. 1001 note) is amended by
striking ``That this'' and inserting the following:
``SEC. 1. SHORT TITLE.
``This''.
(5) Section 2 (30 U.S.C. 1001) is amended by striking ``sec.
2. As'' and inserting the following:
``SEC. 2. DEFINITIONS.
``As''.
[[Page 119 STAT. 672]]
(6) Section 3 (30 U.S.C. 1002) is amended by striking ``sec.
3. Subject'' and inserting the following:
``SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.
``Subject''.
(7) Section 5 (30 U.S.C. 1004) is further amended by
striking ``sec. 5.'', and by inserting immediately before and
above subsection (a) the following:
``SEC. 5. RENTS AND ROYALTIES.''.
(8) Section 8 (30 U.S.C. 1007) is amended by striking ``sec.
8. (a) The'' and inserting the following:
``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.
``(a) The''.
(9) Section 9 (30 U.S.C. 1008) is amended by striking ``sec.
9. If'' and inserting the following:
``SEC. 9. BYPRODUCTS.
``If''.
(10) Section 10 (30 U.S.C. 1009) is amended by striking
``sec. 10. The'' and inserting the following:
``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.
``The''.
(11) Section 11 (30 U.S.C. 1010) is amended by striking
``sec. 11. The'' and inserting the following:
``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.
``The''.
(12) Section 12 (30 U.S.C. 1011) is amended by striking
``sec. 12. Leases'' and inserting the following:
``SEC. 12. TERMINATION OF LEASES.
``Leases''.
(13) Section 13 (30 U.S.C. 1012) is amended by striking
``sec. 13. The'' and inserting the following:
``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.
``The''.
(14) Section 14 (30 U.S.C. 1013) is amended by striking
``sec. 14. Subject'' and inserting the following:
``SEC. 14. SURFACE LAND USE.
``Subject''.
(15) Section 15 (30 U.S.C. 1014) is amended by striking
``sec. 15. (a) Geothermal'' and inserting the following:
``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.
``(a) Geothermal''.
(16) Section 16 (30 U.S.C. 1015) is amended by striking
``sec. 16. Leases'' and inserting the following:
``SEC. 16. REQUIREMENT FOR LESSEES.
``Leases''.
(17) Section 17 (30 U.S.C. 1016) is amended by striking
``sec. 17. Administration'' and inserting the following:
[[Page 119 STAT. 673]]
``SEC. 17. ADMINISTRATION.
``Administration''.
(18) Section 19 (30 U.S.C. 1018) is amended by striking
``sec. 19. Upon'' and inserting the following:
``SEC. 19. DATA FROM FEDERAL AGENCIES.
``Upon''.
(19) Section 21 (30 U.S.C. 1020) is further amended by
striking ``sec. 21.'', and by inserting immediately before and
above the remainder of that section the following:
``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL
RIGHTS.''.
(20) Section 22 (30 U.S.C. 1021) is amended by striking
``sec. 22. Nothing'' and inserting the following:
``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.
``Nothing''.
(21) Section 23 (30 U.S.C. 1022) is amended by striking
``sec. 23. (a) All'' and inserting the following:
``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.
``(a) All''.
(22) Section 24 (30 U.S.C. 1023) is amended by striking
``sec. 24. The'' and inserting the following:
``SEC. 24. RULES AND REGULATIONS.
``The''.
(23) Section 25 (30 U.S.C. 1024) is amended by striking
``sec. 25. As'' and inserting the following:
``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.
``As''.
(24) Section 26 <<NOTE: 30 USC 530.>> is amended by striking
``sec. 26. The'' and inserting the following:
``SEC. 26. AMENDMENT.
``The''.
(25) Section 27 (30 U.S.C. 1025) is amended by striking
``sec. 27. The'' and inserting the following:
``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.
``The''.
(26) Section 28 (30 U.S.C. 1026) is amended by striking
``sec. 28. (a)(1) The'' and inserting the following:
``SEC. 28. SIGNIFICANT THERMAL FEATURES.
``(a)(1) The''.
(27) Section 29 (30 U.S.C. 1027) is amended by striking
``sec. 29. The'' and inserting the following:
``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.
``The''.
SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.
(a) Participation Authorized.--The Secretary, acting through the
Idaho National Laboratory, may participate in a consortium described in
subsection (b) to address science and science policy
[[Page 119 STAT. 674]]
issues surrounding the expanded discovery and use of geothermal energy,
including from geothermal resources on public lands.
(b) Members.--The <<NOTE: Establishment.>> consortium referred to in
subsection (a) shall--
(1) be known as the ``Intermountain West Geothermal
Consortium'';
(2) be a regional consortium of institutions and government
agencies that focuses on building collaborative efforts among
the universities in the State of Idaho, other regional
universities, State agencies, and the Idaho National Laboratory;
(3) include Boise State University, the University of Idaho
(including the Idaho Water Resources Research Institute), the
Oregon Institute of Technology, the Desert Research Institute
with the University and Community College System of Nevada, and
the Energy and Geoscience Institute at the University of Utah;
(4) be hosted and managed by Boise State University; and
(5) have a director appointed by Boise State University, and
associate directors appointed by each participating institution.
(c) Financial Assistance.--The Secretary, acting through the Idaho
National Laboratory and subject to the availability of appropriations,
will provide financial assistance to Boise State University for
expenditure under contracts with members of the consortium to carry out
the activities of the consortium.
Subtitle C--Hydroelectric
SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) Federal Reservations.--Section 4(e) of the Federal Power Act (16
U.S.C. 797(e)) is amended by inserting after ``adequate protection and
utilization of such reservation.'' at the end of the first proviso the
following: ``The license applicant and any party to the proceeding shall
be entitled to a determination on the record, after opportunity for an
agency trial-type hearing of no more than 90 days, on any disputed
issues of material fact with respect to such conditions. All disputed
issues of material fact raised by any party shall be determined in a
single trial-type hearing to be conducted by the relevant resource
agency in accordance with the regulations promulgated under this
subsection and within the time frame established by the Commission for
each license proceeding.
Within <<NOTE: Deadline. Regulations. Procedures.>> 90 days of the date
of enactment of the Energy Policy Act of 2005, the Secretaries of the
Interior, Commerce, and Agriculture shall establish jointly, by rule,
the procedures for such expedited trial-type hearing, including the
opportunity to undertake discovery and cross-examine witnesses, in
consultation with the Federal Energy Regulatory Commission.''.
(b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811)
is amended by inserting after ``and such fishways as may be prescribed
by the Secretary of Commerce.'' the <<NOTE: Deadline.>> following: ``The
license applicant and any party to the proceeding shall be entitled to a
determination on the record, after opportunity for an agency trial-type
hearing of no more than 90 days, on any disputed issues of material fact
with respect to such fishways. All disputed issues of material fact
raised by any party shall be determined in a
[[Page 119 STAT. 675]]
single trial-type hearing to be conducted by the relevant resource
agency in accordance with the regulations promulgated under this
subsection and within the time frame established by the Commission for
each license
proceeding. <<NOTE: Deadline. Regulations. Procedures.>> Within 90 days
of the date of enactment of the Energy Policy Act of 2005, the
Secretaries of the Interior, Commerce, and Agriculture shall establish
jointly, by rule, the procedures for such expedited trial-type hearing,
including the opportunity to undertake discovery and cross-examine
witnesses, in consultation with the Federal Energy Regulatory
Commission.''.
(c) Alternative Conditions and Prescriptions.--Part I of the Federal
Power Act (16 U.S.C. 791a et seq.) is amended by adding the following
new section at the end thereof:
``SEC. 33. <<NOTE: 16 USC 823d.>> ALTERNATIVE CONDITIONS AND
PRESCRIPTIONS.
``(a) Alternative Conditions.--(1) Whenever any person applies for a
license for any project works within any reservation of the United
States, and the Secretary of the department under whose supervision such
reservation falls (referred to in this subsection as the `Secretary')
deems a condition to such license to be necessary under the first
proviso of section 4(e), the license applicant or any other party to the
license proceeding may propose an alternative condition.
``(2) Notwithstanding the first proviso of section 4(e), the
Secretary 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 determines, based on substantial
evidence provided by the license applicant, any other party to the
proceeding, or otherwise available to the Secretary, that such
alternative condition--
``(A) provides for the adequate protection and utilization
of the reservation; and
``(B) will either, as compared to the condition initially by
the Secretary--
``(i) cost significantly less to implement; or
``(ii) result in improved operation of the project
works for electricity production.
``(3) In making a determination under paragraph (2), the Secretary
shall consider evidence provided for the record by any party to a
licensing proceeding, or otherwise available to the Secretary, including
any evidence provided by the Commission, on the implementation costs or
operational impacts for electricity production of a proposed
alternative.
``(4) <<NOTE: Public information. Records.>> The Secretary concerned
shall submit into the public record of the Commission proceeding with
any condition under section 4(e) or alternative condition it accepts
under this section, a written statement explaining the basis for such
condition, and reason for not accepting any alternative condition under
this section. The written statement must demonstrate that the Secretary
gave equal consideration to the effects of the condition adopted and
alternatives not accepted on energy supply, distribution, cost, and use;
flood control; navigation; water supply; and air quality (in addition to
the preservation of other aspects of environmental quality); based on
such information as may be available to the Secretary, including
information voluntarily provided in a timely manner by the applicant and
others. The Secretary shall also submit, together with the
aforementioned written statement, all studies, data, and
[[Page 119 STAT. 676]]
other factual information available to the Secretary and relevant to the
Secretary's decision.
``(5) If the Commission finds that the Secretary's final condition
would be inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the Commission's
Dispute Resolution Service. <<NOTE: Deadline.>> The Dispute Resolution
Service shall consult with the Secretary and the Commission and issue a
non-binding advisory within 90 days. The Secretary may accept the
Dispute Resolution Service advisory unless the Secretary finds that the
recommendation will not adequately protect the
reservation. <<NOTE: Records.>> The Secretary shall submit the advisory
and the Secretary's final written determination into the record of the
Commission's proceeding.
``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the
Interior or the Secretary of Commerce prescribes a fishway under section
18, the license applicant or any other party to the license proceeding
may propose an alternative to such prescription to construct, maintain,
or operate a fishway.
``(2) Notwithstanding section 18, 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 license
applicant, any other party to the proceeding, or otherwise available to
the Secretary, that such alternative--
``(A) will be no less protective than the fishway initially
prescribed by the Secretary; and
``(B) will either, as compared to the fishway initially
prescribed by the Secretary--
``(i) cost significantly less to implement; or
``(ii) result in improved operation of the project
works for electricity production.
``(3) In making a determination under paragraph (2), the Secretary
shall consider evidence provided for the record by any party to a
licensing proceeding, or otherwise available to the Secretary, including
any evidence provided by the Commission, on the implementation costs or
operational impacts for electricity production of a proposed
alternative.
``(4) <<NOTE: Public information. Records.>> The Secretary concerned
shall submit into the public record of the Commission proceeding with
any prescription under section 18 or alternative prescription it accepts
under this section, a written statement explaining the basis for such
prescription, and reason for not accepting any alternative prescription
under this section. The written statement must demonstrate that the
Secretary gave equal consideration to the effects of the prescription
adopted and alternatives not accepted on energy supply, distribution,
cost, and use; flood control; navigation; water supply; and air quality
(in addition to the preservation of other aspects of environmental
quality); based on such information as may be available to the
Secretary, including information voluntarily provided in a timely manner
by the applicant and others. The Secretary shall also submit, together
with the aforementioned written statement, all studies, data, and other
factual information available to the Secretary and relevant to the
Secretary's decision.
``(5) If the Commission finds that the Secretary's final
prescription would be inconsistent with the purposes of this part, or
other applicable law, the Commission may refer the dispute to the
[[Page 119 STAT. 677]]
Commission's Dispute Resolution Service. <<NOTE: Deadline.>> The Dispute
Resolution Service shall consult with the Secretary and the Commission
and issue a non-binding advisory within 90 days. The Secretary may
accept the Dispute Resolution Service advisory unless the Secretary
finds that the recommendation will not adequately protect the fish
resources. <<NOTE: Records.>> The Secretary shall submit the advisory
and the Secretary's final written determination into the record of the
Commission's proceeding.''.
SEC. 242. <<NOTE: 42 USC 15881.>> HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and sold by a
qualified hydroelectric facility during the incentive period, the
Secretary shall make, subject to the availability of appropriations,
incentive payments to the owner or operator of such facility. The amount
of such payment made to any such owner or operator shall be as
determined under subsection (e) of this section. Payments under this
section may only be made upon receipt by the Secretary of an incentive
payment application which establishes that the applicant is eligible to
receive such payment and which satisfies such other requirements as the
Secretary deems necessary. Such application shall be in such form, and
shall be submitted at such time, as the Secretary shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to an
existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which was
completed before the date of the enactment of this section and
which does not require any construction or enlargement of
impoundment or diversion structures (other than repair or
reconstruction) in connection with the installation of a turbine
or other generating device.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act (16
U.S.C. 823a(a)(2)).
The <<NOTE: Applicability.>> terms defined in this subsection shall
apply without regard to the hydroelectric kilowatt capacity of the
facility concerned, without regard to whether the facility uses a dam
owned by a governmental or nongovernmental entity, and without regard to
whether the facility begins operation on or after the date of the
enactment of this section.
(c) Eligibility Window.--Payments may be made under this section
only for electric energy generated from a qualified hydroelectric
facility which begins operation during the period of 10 fiscal years
beginning with the first full fiscal year occurring after the date of
enactment of this subtitle.
(d) Incentive Period.--A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal years
(referred to in this section as the ``incentive period''). Such period
shall begin with the fiscal year in which electric energy generated from
the facility is first eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
[[Page 119 STAT. 678]]
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the
incentive period. For any such facility, the amount of such
payment shall be 1.8 cents per kilowatt hour (adjusted as
provided in paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no facility may
receive more than $750,000 in 1 calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall be
adjusted for inflation for each fiscal year beginning after
calendar year 2005 in the same manner as provided in the
provisions of section 29(d)(2)(B) of the Internal Revenue Code
of 1986, except that in applying such provisions the calendar
year 2005 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to any
qualified hydroelectric facility after the expiration of the period of
20 fiscal years beginning with the first full fiscal year occurring
after the date of enactment of this subtitle, and no payment may be made
under this section to any such facility after a payment has been made
with respect to such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out the purposes of this section
$10,000,000 for each of the fiscal years 2006 through 2015.
SEC. 243. <<NOTE: 42 USC 15882.>> HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary shall make incentive payments
to the owners or operators of hydroelectric facilities at existing dams
to be used to make capital improvements in the facilities that are
directly related to improving the efficiency of such facilities by at
least 3 percent.
(b) Limitations.--Incentive payments under this section shall not
exceed 10 percent of the costs of the capital improvement concerned and
not more than 1 payment may be made with respect to improvements at a
single facility. No payment in excess of $750,000 may be made with
respect to improvements at a single facility.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section not more than $10,000,000 for
each of the fiscal years 2006 through 2015.
SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.
Section 32 of the Federal Power Act (16 U.S.C. 823c) is amended--
(1) in subsection (a)(3)(C), by inserting ``except as
provided in subsection (j),'' before ``conditions''; and
(2) by adding at the end the following:
``(j) Fish and Wildlife.--If the State of Alaska determines that a
recommendation under subsection (a)(3)(C) is inconsistent with
paragraphs (1) and (2) of subsection (a), the State of Alaska may
decline to adopt all or part of the recommendations in accordance with
the procedures established under section 10(j)(2).''.
SEC. 245. <<NOTE: Montana.>> FLINT CREEK HYDROELECTRIC PROJECT.
(a) Extension of Time.--
Notwithstanding <<NOTE: Applicability. Effective dates.>> the time
period specified in section 5 of the Federal Power Act (16 U.S.C. 798)
[[Page 119 STAT. 679]]
that would otherwise apply to the Federal Energy Regulatory Commission
(referred to in this section as the ``Commission'') project numbered
12107, the Commission shall--
(1) if the preliminary permit is in effect on the date of
enactment of this Act, extend the preliminary permit for a
period of 3 years beginning on the date on which the preliminary
permit expires; or
(2) if the preliminary permit expired before the date of
enactment of this Act, on request of the permittee, reinstate
the preliminary permit for an additional 3-year period beginning
on the date of enactment of this Act.
(b) Limitation on Certain Fees.--Notwithstanding section 10(e)(1) of
the Federal Power Act (16 U.S.C. 803(e)(1)) or any other provision of
Federal law providing for the payment to the United States of charges
for the use of Federal land for the purposes of operating and
maintaining a hydroelectric development licensed by the Commission, any
political subdivision of the State of Montana that holds a Commission
license for the Commission project numbered 12107 in Granite and Deer
Lodge Counties, Montana, shall be required to pay to the United States
for the use of that land for each year during which the political
subdivision continues to hold the license for the project, the lesser
of--
(1) $25,000; or
(2) such annual charge as the Commission or any other
department or agency of the Federal Government may assess.
SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2708(a)(6)) is amended by striking ``April 20, 1977''
and inserting ``July 22, 2005''.
Subtitle D--Insular Energy
SEC. 251. INSULAR AREAS ENERGY SECURITY.
Section 604 of the Act entitled ``An Act to authorize appropriations
for certain insular areas of the United States, and for other
purposes'', approved December 24, 1980 (48 U.S.C. 1492), is amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the following new
paragraphs:
``(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by the
hurricanes and typhoons which frequently occur in insular areas
and such damage often costs millions of dollars to repair; and
``(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment
prepared pursuant to subsection (c) reveals the need to reassess
the state of energy production, consumption, infrastructure,
reliance on imported energy, opportunities for energy
conservation and increased energy efficiency, and indigenous
sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
[[Page 119 STAT. 680]]
``(e)(1) The Secretary of the Interior, in consultation with the
Secretary of Energy and the head of government of each insular area,
shall update the plans required under subsection (c) by--
``(A) updating the contents required by subsection (c);
``(B) drafting long-term energy plans for such insular areas
with the objective of reducing, to the extent feasible, their
reliance on energy imports by the year 2012, increasing energy
conservation and energy efficiency, and maximizing, to the
extent feasible, use of indigenous energy sources; and
``(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and
distribution lines in each insular area be protected from damage
caused by hurricanes and typhoons.
``(2) In carrying out this subsection, the Secretary of Energy shall
identify and evaluate the strategies or projects with the greatest
potential for reducing the dependence on imported fossil fuels as used
for the generation of electricity, including strategies and projects
for--
``(A) improved supply-side efficiency of centralized
electrical generation, transmission, and distribution systems;
``(B) improved demand-side management through--
``(i) the application of established standards for
energy efficiency for appliances;
``(ii) the conduct of energy audits for business and
industrial customers; and
``(iii) the use of energy savings performance
contracts;
``(C) increased use of renewable energy, including--
``(i) solar thermal energy for electric generation;
``(ii) solar thermal energy for water heating in
large buildings, such as hotels, hospitals, government
buildings, and residences;
``(iii) photovoltaic energy;
``(iv) wind energy;
``(v) hydroelectric energy;
``(vi) wave energy;
``(vii) energy from ocean thermal resources,
including ocean thermal-cooling for community air
conditioning;
``(viii) water vapor condensation for the production
of potable water;
``(ix) fossil fuel and renewable hybrid electrical
generation systems; and
``(x) other strategies or projects that the
Secretary may identify as having significant potential;
and
``(D) fuel substitution and minimization with indigenous
biofuels, such as coconut oil.
``(3) In carrying out this subsection, for each insular area with a
significant need for distributed generation, the Secretary of Energy
shall identify and evaluate the most promising strategies and projects
described in subparagraphs (C) and (D) of paragraph (2) for meeting that
need.
``(4) In assessing the potential of any strategy or project under
paragraphs (2) and (3), the Secretary of Energy shall consider--
``(A) the estimated cost of the power or energy to be
produced, including--
``(i) any additional costs associated with the
distribution of the generation; and
[[Page 119 STAT. 681]]
``(ii) the long-term availability of the generation
source;
``(B) the capacity of the local electrical utility to
manage, operate, and maintain any project that may be
undertaken; and
``(C) other factors the Secretary of Energy considers to be
appropriate.
``(5) <<NOTE: Deadline.>> Not later than 1 year after the date of
enactment of this subsection, the Secretary of the Interior shall submit
to the Committee on Energy and Natural Resources of the Senate, the
Committee on Resources of the House of Representatives, and the
Committee on Energy and Commerce of the House of Representatives, the
updated plans for each insular area required by this subsection.''; and
(4) by amending subsection (g)(4) to read as follows:
``(4) Power line grants for insular areas.--
``(A) In general.--The Secretary of the Interior is
authorized to make grants to governments of insular
areas of the United States to carry out eligible
projects to protect electric power transmission and
distribution lines in such insular areas from damage
caused by hurricanes and typhoons.
``(B) Eligible projects.--The Secretary of the
Interior may award grants under subparagraph (A) only to
governments of insular areas of the United States that
submit written project plans to the Secretary for
projects that meet the following criteria:
``(i) The project is designed to protect
electric power transmission and distribution lines
located in 1 or more of the insular areas of the
United States from damage caused by hurricanes and
typhoons.
``(ii) The project is likely to substantially
reduce the risk of future damage, hardship, loss,
or suffering.
``(iii) The project addresses 1 or more
problems that have been repetitive or that pose a
significant risk to public health and safety.
``(iv) The project is not likely to cost more
than the value of the reduction in direct damage
and other negative impacts that the project is
designed to prevent or mitigate. The cost benefit
analysis required by this criterion shall be
computed on a net present value basis.
``(v) The project design has taken into
consideration long-term changes to the areas and
persons it is designed to protect and has
manageable future maintenance and modification
requirements.
``(vi) The project plan includes an analysis
of a range of options to address the problem it is
designed to prevent or mitigate and a
justification for the selection of the project in
light of that analysis.
``(vii) The applicant has demonstrated to the
Secretary that the matching funds required by
subparagraph (D) are available.
``(C) Priority.--When making grants under this
paragraph, the Secretary of the Interior shall give
priority to grants for projects which are likely to--
``(i) have the greatest impact on reducing
future disaster losses; and
[[Page 119 STAT. 682]]
``(ii) best conform with plans that have been
approved by the Federal Government or the
government of the insular area where the project
is to be carried out for development or hazard
mitigation for that insular area.
``(D) Matching requirement.--The Federal share of
the cost for a project for which a grant is provided
under this paragraph shall not exceed 75 percent of the
total cost of that project. The non-Federal share of the
cost may be provided in the form of cash or services.
``(E) Treatment of funds for certain purposes.--
Grants provided under this paragraph shall not be
considered as income, a resource, or a duplicative
program when determining eligibility or benefit levels
for Federal major disaster and emergency assistance.
``(F) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $6,000,000 for each fiscal year beginning
after the date of the enactment of this paragraph.''.
SEC. 252. <<NOTE: 42 USC 15891.>> PROJECTS ENHANCING INSULAR ENERGY
INDEPENDENCE.
(a) Project Feasibilty Studies.--
(1) In general.--On a request described in paragraph (2),
the Secretary shall conduct a feasibility study of a project to
implement a strategy or project identified in the plans
submitted to Congress pursuant to section 604 of the Act
entitled ``An Act to authorize appropriations for certain
insular areas of the United States, and for other purposes'',
approved December 24, 1980 (48 U.S.C. 1492), as having the
potential to--
(A) significantly reduce the dependence of an
insular area on imported fossil fuels; or
(B) provide needed distributed generation to an
insular area.
(2) Request.--The Secretary shall conduct a feasibility
study under paragraph (1) on--
(A) the request of an electric utility located in an
insular area that commits to fund at least 10 percent of
the cost of the study; and
(B) if the electric utility is located in the
Federated States of Micronesia, the Republic of the
Marshall Islands, or the Republic of Palau, written
support for that request by the President or the
Ambassador of the affected freely associated state.
(3) Consultation.--The Secretary shall consult with regional
utility organizations in--
(A) conducting feasibility studies under paragraph
(1); and
(B) determining the feasibility of potential
projects.
(4) Feasibility.--For the purpose of a feasibility study
under paragraph (1), a project shall be determined to be
feasible if the project would significantly reduce the
dependence of an insular area on imported fossil fuels, or
provide needed distributed generation to an insular area, at a
reasonable cost.
(b) Implementation.--
(1) In general.--On a determination by the Secretary (in
consultation with the Secretary of the Interior) that a project
[[Page 119 STAT. 683]]
is feasible under subsection (a) and a commitment by an electric
utility to operate and maintain the project, the Secretary may
provide such technical and financial assistance as the Secretary
determines is appropriate for the implementation of the project.
(2) Regional utility organizations.--In providing assistance
under paragraph (1), the Secretary shall consider providing the
assistance through regional utility organizations.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary--
(A) $500,000 for each fiscal year for project
feasibility studies under subsection (a); and
(B) $4,000,000 for each fiscal year for project
implementation under subsection (b).
(2) Limitation of funds received by insular areas.--No
insular area may receive, during any 3-year period, more than 20
percent of the total funds made available during that 3-year
period under subparagraphs (A) and (B) of paragraph (1) unless
the Secretary determines that providing funding in excess of
that percentage best advances existing opportunities to meet the
objectives of this section.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM RESERVE
AND OTHER ENERGY PROGRAMS.
(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. 6212
et seq.) is amended--
(1) by striking section 166 (42 U.S.C. 6246) and inserting
the following:
``authorization of appropriations
``Sec. 166. There are authorized to be appropriated to the Secretary
such sums as are necessary to carry out this part and part D, to remain
available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251).
(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 inserting before section 273 (42 U.S.C. 6283) the
following:
``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';
(2) by striking section 273(e) (42 U.S.C. 6283(e)); and
(3) by striking part D (42 U.S.C. 6285).
(c) Technical Amendments.--The table of contents for the Energy
Policy and Conservation Act is amended--
[[Page 119 STAT. 684]]
(1) by inserting after the items relating to part C of title
I the following:
``Part D--Northeast Home Heating Oil Reserve
``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
(2) by amending the items relating to part C of title II to
read as follows:
``Part C--Summer Fill and Fuel Budgeting Programs
``Sec. 273. Summer fill and fuel budgeting programs.'';
and
(3) by striking the items relating to part D of title II.
(d) Amendment to the Energy Policy and Conservation Act.--Section
183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C.
6250b(b)(1)) is amended by striking ``by more'' and all that follows
through ``mid-October through March'' and inserting ``by more than 60
percent over its 5-year rolling average for the months of mid-October
through March (considered as a heating season average)''.
(e) Fill <<NOTE: 42 USC 6240 note.>> Strategic Petroleum Reserve to
Capacity.--
(1) In general.--The Secretary shall, as expeditiously as
practicable, without incurring excessive cost or appreciably
affecting the price of petroleum products to consumers, acquire
petroleum in quantities sufficient to fill the Strategic
Petroleum Reserve to the 1,000,000,000-barrel capacity
authorized under section 154(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6234(a)), in accordance with the
sections 159 and 160 of that Act (42 U.S.C. 6239, 6240).
(2) Procedures.--
(A) Amendment.--Section 160 of the Energy Policy and
Conservation Act (42 U.S.C. 6240) is amended by
inserting after subsection (b) the following new
subsection:
``(c) Procedures.--The <<NOTE: Public
information. Notice.>> Secretary shall develop, with public notice and
opportunity for comment, procedures consistent with the objectives of
this section to acquire petroleum for the Reserve. Such procedures shall
take into account the need to--
``(1) maximize overall domestic supply of crude oil
(including quantities stored in private sector inventories);
``(2) avoid incurring excessive cost or appreciably
affecting the price of petroleum products to consumers;
``(3) minimize the costs to the Department of the Interior
and the Department of Energy in acquiring such petroleum
products (including foregone revenues to the Treasury when
petroleum products for the Reserve are obtained through the
royalty-in-kind program);
``(4) protect national security;
``(5) avoid adversely affecting current and futures prices,
supplies, and inventories of oil; and
``(6) address other factors that the Secretary determines to
be appropriate.''.
(B) Review of <<NOTE: 42 USC 6240 note.>> requests
for deferrals of scheduled deliveries.--The procedures
developed under section 160(c) of the Energy Policy and
Conservation Act, as added by subparagraph (A), shall
include procedures and criteria
[[Page 119 STAT. 685]]
for the review of requests for the deferrals of
scheduled deliveries.
(C) Deadlines.--The Secretary shall--
(i) propose the procedures required under the
amendment made by subparagraph (A) not later than
120 days after the date of enactment of this Act;
(ii) promulgate the procedures not later than
180 days after the date of enactment of this Act;
and
(iii) comply with the procedures in acquiring
petroleum for the Reserve effective beginning on
the date that is 180 days after the date of
enactment of this Act.
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.
Section 713 of the Energy Act of 2000 (Public Law 106-469; 42 U.S.C.
6201 note) is amended by striking ``4'' and inserting ``9''.
SEC. 303. <<NOTE: Deadline.>> SITE SELECTION.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall complete a proceeding to select, from sites that the
Secretary has previously studied, sites necessary to enable acquisition
by the Secretary of the full authorized volume of the Strategic
Petroleum Reserve. In such proceeding, the Secretary shall first
consider and give preference to the five sites which the Secretary
previously assessed in the Draft Environmental Impact Statement, DOE/
EIS-0165-D. However, the Secretary in his discretion may select other
sites as proposed by a State where a site has been previously studied by
the Secretary to meet the full authorized volume of the Strategic
Petroleum Reserve.
Subtitle B--Natural Gas
SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.
(a) Scope of Natural Gas Act.--Section 1(b) of the Natural Gas Act
(15 U.S.C. 717(b)) is amended by inserting ``and to the importation or
exportation of natural gas in foreign commerce and to persons engaged in
such importation or exportation,'' after ``such transportation or
sale,''.
(b) Definition.--Section 2 of the Natural Gas Act (15 U.S.C. 717a)
is amended by adding at the end the following new paragraph:
``(11) `LNG terminal' includes all natural gas facilities
located onshore or in State waters that are used to receive,
unload, load, store, transport, gasify, liquefy, or process
natural gas that is imported to the United States from a foreign
country, exported to a foreign country from the United States,
or transported in interstate commerce by waterborne vessel, but
does not include--
``(A) waterborne vessels used to deliver natural gas
to or from any such facility; or
``(B) any pipeline or storage facility subject to
the jurisdiction of the Commission under section 7.''.
(c) Authorization for Siting, Construction, Expansion, or Operation
of LNG Terminals.--(1) The title for section 3 of the Natural Gas Act
(15 U.S.C. 717b) is amended by inserting ``; lng terminals'' after
``exportation or importation of natural gas''.
[[Page 119 STAT. 686]]
(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
adding at the end the following:
``(d) Except as specifically provided in this Act, nothing in this
Act affects the rights of States under--
``(1) the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.);
``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
``(3) the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.).
``(e)(1) The Commission shall have the exclusive authority to
approve or deny an application for the siting, construction, expansion,
or operation of an LNG terminal. Except as specifically provided in this
Act, nothing in this Act is intended to affect otherwise applicable law
related to any Federal agency's authorities or responsibilities related
to LNG terminals.
``(2) Upon the filing of any application to site, construct, expand,
or operate an LNG terminal, the Commission shall--
``(A) set the matter for hearing;
``(B) <<NOTE: Notice.>> give reasonable notice of the
hearing to all interested persons, including the State
commission of the State in which the LNG terminal is located
and, if not the same, the Governor-appointed State agency
described in section 3A;
``(C) decide the matter in accordance with this subsection;
and
``(D) issue or deny the appropriate order accordingly.
``(3)(A) Except as provided in subparagraph (B), the Commission may
approve an application described in paragraph (2), in whole or part,
with such modifications and upon such terms and conditions as the
Commission find necessary or appropriate.
``(B) Before January 1, 2015, the Commission shall not--
``(i) deny an application solely on the basis that the
applicant proposes to use the LNG terminal exclusively or
partially for gas that the applicant or an affiliate of the
applicant will supply to the facility; or
``(ii) condition an order on--
``(I) a requirement that the LNG terminal offer
service to customers other than the applicant, or any
affiliate of the applicant, securing the order;
``(II) any regulation of the rates, charges, terms,
or conditions of service of the LNG terminal; or
``(III) a requirement to file with the Commission
schedules or contracts related to the rates, charges,
terms, or conditions of service of the LNG terminal.
``(C) <<NOTE: Termination date.>> Subparagraph (B) shall cease to
have effect on January 1, 2030.
``(4) An order issued for an LNG terminal that also offers service
to customers on an open access basis shall not result in subsidization
of expansion capacity by existing customers, degradation of service to
existing customers, or undue discrimination against existing customers
as to their terms or conditions of service at the facility, as all of
those terms are defined by the Commission.
``(f)(1) In this subsection, the term `military installation'--
``(A) means a base, camp, post, range, station, yard,
center, or homeport facility for any ship or other activity
under the jurisdiction of the Department of Defense, including
any leased facility, that is located within a State, the
District of Columbia, or any territory of the United States; and
[[Page 119 STAT. 687]]
``(B) does not include any facility used primarily for civil
works, rivers and harbors projects, or flood control projects,
as determined by the Secretary of Defense.
``(2) <<NOTE: Memorandum.>> The Commission shall enter into a
memorandum of understanding with the Secretary of Defense for the
purpose of ensuring that the Commission coordinate and consult with the
Secretary of Defense on the siting, construction, expansion, or
operation of liquefied natural gas facilities that may affect an active
military installation.
``(3) The Commission shall obtain the concurrence of the Secretary
of Defense before authorizing the siting, construction, expansion, or
operation of liquefied natural gas facilities affecting the training or
activities of an active military installation.''.
(d) LNG Terminal State and Local Safety Concerns.--After section 3
of the Natural Gas Act (15 U.S.C. 717b) insert the following:
``state and local safety considerations
``Sec. 3A. (a) <<NOTE: Regulations. Deadline. 15 USC 717b-1.>> The
Commission shall promulgate regulations on the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) pre-filing process within 60
days after the date of enactment of this section. An applicant shall
comply with pre-filing process required under the National Environmental
Policy Act of 1969 prior to filing an application with the Commission.
The regulations shall require that the pre-filing process commence at
least 6 months prior to the filing of an application for authorization
to construct an LNG terminal and encourage applicants to cooperate with
State and local officials.
``(b) The Governor of a State in which an LNG terminal is proposed
to be located shall designate the appropriate State agency for the
purposes of consulting with the Commission regarding an application
under section 3. The Commission shall consult with such State agency
regarding State and local safety considerations prior to issuing an
order pursuant to section 3. For the purposes of this section, State and
local safety considerations include--
``(1) the kind and use of the facility;
``(2) the existing and projected population and demographic
characteristics of the location;
``(3) the existing and proposed land use near the location;
``(4) the natural and physical aspects of the location;
``(5) the emergency response capabilities near the facility
location; and
``(6) the need to encourage remote siting.
``(c) The State agency may furnish an advisory report on State and
local safety considerations to the Commission with respect to an
application no later than 30 days after the application was filed with
the Commission. Before issuing an order authorizing an applicant to
site, construct, expand, or operate an LNG terminal, the Commission
shall review and respond specifically to the issues raised by the State
agency described in subsection (b) in the advisory
report. <<NOTE: Applicability.>> This subsection shall apply to any
application filed after the date of enactment of the Energy Policy Act
of 2005. A <<NOTE: Deadline. Reports.>> State agency has 30 days after
such date of enactment to file an advisory report related to any
applications pending at the Commission as of such date of enactment.
``(d) The State commission of the State in which an LNG terminal is
located may, after the terminal is operational, conduct
[[Page 119 STAT. 688]]
safety inspections in conformance with Federal regulations and
guidelines with respect to the LNG terminal upon written notice to the
Commission. The State commission may notify the Commission of any
alleged safety violations. <<NOTE: Notification.>> The Commission shall
transmit information regarding such allegations to the appropriate
Federal agency, which shall take appropriate action and notify the State
commission.
``(e)(1) In any order authorizing an LNG terminal the Commission
shall require the LNG terminal operator to develop an Emergency Response
Plan. The Emergency Response Plan shall be prepared in consultation with
the United States Coast Guard and State and local agencies and be
approved by the Commission prior to any final approval to begin
construction. The Plan shall include a cost-sharing plan.
``(2) A cost-sharing plan developed under paragraph (1) shall
include a description of any direct cost reimbursements that the
applicant agrees to provide to any State and local agencies with
responsibility for security and safety--
``(A) at the LNG terminal; and
``(B) in proximity to vessels that serve the facility.''.
SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.
Section 4 of the Natural Gas Act (15 U.S.C. 717c) is amended by
adding at the end the following:
``(f)(1) In exercising its authority under this Act or the Natural
Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may
authorize a natural gas company (or any person that will be a natural
gas company on completion of any proposed construction) to provide
storage and storage-related services at market-based rates for new
storage capacity related to a specific facility placed in service after
the date of enactment of the Energy Policy Act of 2005, notwithstanding
the fact that the company is unable to demonstrate that the company
lacks market power, if the Commission determines that--
``(A) market-based rates are in the public interest and
necessary to encourage the construction of the storage capacity
in the area needing storage services; and
``(B) customers are adequately protected.
``(2) The Commission shall ensure that reasonable terms and
conditions are in place to protect consumers.
``(3) If the Commission authorizes a natural gas company to charge
market-based rates under this subsection, the Commission shall review
periodically whether the market-based rate is just, reasonable, and not
unduly discriminatory or preferential.''.
SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.
(a) In General.--Section 15 of the Natural Gas Act (15 U.S.C. 717n)
is amended--
(1) by striking the section heading and inserting ``process
coordination; hearings; rules of procedure'';
(2) by redesignating subsections (a) and (b) as subsections
(e) and (f), respectively; and
(3) by striking ``sec. 15.'' and inserting the following:
``Sec. 15.(a) In this section, the term `Federal authorization'--
``(1) means any authorization required under Federal law
with respect to an application for authorization under section
[[Page 119 STAT. 689]]
3 or a certificate of public convenience and necessity under
section 7; and
``(2) includes any permits, special use authorizations,
certifications, opinions, or other approvals as may be required
under Federal law with respect to an application for
authorization under section 3 or a certificate of public
convenience and necessity under section 7.
``(b) Designation as Lead Agency.--
``(1) In general.--The Commission shall act as the lead
agency for the purposes of coordinating all applicable Federal
authorizations and for the purposes of complying with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
``(2) Other agencies.--Each Federal and State agency
considering an aspect of an application for Federal
authorization shall cooperate with the Commission and comply
with the deadlines established by the Commission.
``(c) Schedule.--
``(1) Commission authority to set schedule.--The Commission
shall establish a schedule for all Federal authorizations. In
establishing the schedule, the Commission shall--
``(A) ensure expeditious completion of all such
proceedings; and
``(B) comply with applicable schedules established
by Federal law.
``(2) Failure to meet schedule.--If a Federal or State
administrative agency does not complete a proceeding for an
approval that is required for a Federal authorization in
accordance with the schedule established by the Commission, the
applicant may pursue remedies under section 19(d).
``(d) Consolidated Record.--The Commission shall, with the
cooperation of Federal and State administrative agencies and officials,
maintain a complete consolidated record of all decisions made or actions
taken by the Commission or by a Federal administrative agency or officer
(or State administrative agency or officer acting under delegated
Federal authority) with respect to any Federal authorization. Such
record shall be the record for--
``(1) appeals or reviews under the Coastal Zone Management
Act of 1972 (16 U.S.C. 1451 et seq.), provided that the record
may be supplemented as expressly provided pursuant to section
319 of that Act; or
``(2) judicial review under section 19(d) of decisions made
or actions taken of Federal and State administrative agencies
and officials, provided that, if the Court determines that the
record does not contain sufficient information, the Court may
remand the proceeding to the Commission for further development
of the consolidated record.''.
(b) Judicial Review.--Section 19 of the Natural Gas Act (15 U.S.C.
717r) is amended by adding at the end the following:
``(d) Judicial Review.--
``(1) In general.--The United States Court of Appeals for
the circuit in which a facility subject to section 3 or section
7 is proposed to be constructed, expanded, or operated shall
have original and exclusive jurisdiction over any civil action
for the review of an order or action of a Federal agency (other
than the Commission) or State administrative agency acting
pursuant to Federal law to issue, condition, or deny any permit,
[[Page 119 STAT. 690]]
license, concurrence, or approval (hereinafter collectively
referred to as `permit') required under Federal law, other than
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et
seq.).
``(2) Agency delay.--The United States Court of Appeals for
the District of Columbia shall have original and exclusive
jurisdiction over any civil action for the review of an alleged
failure to act by a Federal agency (other than the Commission)
or State administrative agency acting pursuant to Federal law to
issue, condition, or deny any permit required under Federal law,
other than the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.), for a facility subject to section 3 or section 7.
The failure of an agency to take action on a permit required
under Federal law, other than the Coastal Zone Management Act of
1972, in accordance with the Commission schedule established
pursuant to section 15(c) shall be considered inconsistent with
Federal law for the purposes of paragraph (3).
``(3) Court action.--If the Court finds that such order or
action is inconsistent with the Federal law governing such
permit and would prevent the construction, expansion, or
operation of the facility subject to section 3 or section 7, the
Court shall remand the proceeding to the agency to take
appropriate action consistent with the order of the Court. If
the Court remands the order or action to the Federal or State
agency, the Court shall set a reasonable schedule and deadline
for the agency to act on remand.
``(4) Commission action.--For any action described in this
subsection, the Commission shall file with the Court the
consolidated record of such order or action to which the appeal
hereunder relates.
``(5) Expedited review.--The Court shall set any action
brought under this subsection for expedited consideration.''.
SEC. 314. PENALTIES.
(a) Criminal Penalties.--
(1) Natural gas act.--Section 21 of the Natural Gas Act (15
U.S.C. 717t) is amended--
(A) in subsection (a)--
(i) by striking ``$5,000'' and inserting
``$1,000,000''; and
(ii) by striking ``two years'' and inserting
``5 years''; and
(B) in subsection (b), by striking ``$500'' and
inserting ``$50,000''.
(2) Natural gas policy act of 1978.--Section 504(c) of the
Natural Gas Policy Act of 1978 (15 U.S.C. 3414(c)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``$5,000'' and inserting ``$1,000,000''; and
(ii) in subparagraph (B), by striking ``two
years'' and inserting ``5 years''; and
(B) in paragraph (2), by striking ``$500 for each
violation'' and inserting ``$50,000 for each day on
which the offense occurs''.
(b) Civil Penalties.--
[[Page 119 STAT. 691]]
(1) Natural gas act.--The Natural Gas Act (15 U.S.C. 717 et
seq.) is amended--
(A) <<NOTE: 15 USC 717u-717w.>> by redesignating
sections 22 through 24 as sections 24 through 26,
respectively; and
(B) by inserting after section 21 (15 U.S.C. 717t)
the following:
``civil penalty authority
``Sec. 22. (a) <<NOTE: 15 USC 717t-1.>> Any person that violates
this Act, or any rule, regulation, restriction, condition, or order made
or imposed by the Commission under authority of this Act, shall be
subject to a civil penalty of not more than $1,000,000 per day per
violation for as long as the violation continues.
``(b) The penalty shall be assessed by the Commission after notice
and opportunity for public hearing.
``(c) In determining the amount of a proposed penalty, the
Commission shall take into consideration the nature and seriousness of
the violation and the efforts to remedy the violation.''.
(2) Natural gas policy act of 1978.--Section 504(b)(6)(A) of
the Natural Gas Policy Act of 1978 (15 U.S.C. 3414(b)(6)(A)) is
amended--
(A) in clause (i), by striking ``$5,000'' and
inserting ``$1,000,000''; and
(B) in clause (ii), by striking ``$25,000'' and
inserting ``$1,000,000''.
SEC. 315. MARKET MANIPULATION.
The Natural Gas Act is amended by inserting after section 4 (15
U.S.C. 717c) the following:
``prohibition on market manipulation
``Sec. 4A. <<NOTE: 15 USC 717c-1.>> It shall be unlawful for any
entity, directly or indirectly, to use or employ, in connection with the
purchase or sale of natural gas or the purchase or sale of
transportation services subject to the jurisdiction of the Commission,
any manipulative or deceptive device or contrivance (as those terms are
used in section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78j(b))) in contravention of such rules and regulations as the
Commission may prescribe as necessary in the public interest or for the
protection of natural gas ratepayers. Nothing in this section shall be
construed to create a private right of action.''.
SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.
The Natural Gas Act (15 U.S.C. 717 et seq.) is amended by inserting
after section 22 the following:
``natural gas market transparency rules
``Sec. 23. (a)(1) <<NOTE: 15 USC 717t-2.>> The Commission is
directed to facilitate price transparency in markets for the sale or
transportation of physical natural gas in interstate commerce, having
due regard for the public interest, the integrity of those markets, fair
competition, and the protection of consumers.
``(2) The Commission may prescribe such rules as the Commission
determines necessary and appropriate to carry out the purposes of this
section. The rules shall provide for the dissemination, on a timely
basis, of information about the availability and prices
[[Page 119 STAT. 692]]
of natural gas sold at wholesale and in interstate commerce to the
Commission, State commissions, buyers and sellers of wholesale natural
gas, and the public.
``(3) The Commission may--
``(A) obtain the information described in paragraph (2) from
any market participant; and
``(B) rely on entities other than the Commission to receive
and make public the information, subject to the disclosure rules
in subsection (b).
``(4) In carrying out this section, the Commission shall consider
the degree of price transparency provided by existing price publishers
and providers of trade processing services, and shall rely on such
publishers and services to the maximum extent possible. The Commission
may establish an electronic information system if it determines that
existing price publications are not adequately providing price discovery
or market transparency.
``(b)(1) Rules described in subsection (a)(2), if adopted, shall
exempt from disclosure information the Commission determines would, if
disclosed, be detrimental to the operation of an effective market or
jeopardize system security.
``(2) In determining the information to be made available under this
section and the time to make the information available, the Commission
shall seek to ensure that consumers and competitive markets are
protected from the adverse effects of potential collusion or other
anticompetitive behaviors that can be facilitated by untimely public
disclosure of transaction-specific information.
``(c)(1) <<NOTE: Deadline. Memorandum.>> Within 180 days of
enactment of this section, the Commission shall conclude a memorandum of
understanding with the Commodity Futures Trading Commission relating to
information sharing, which shall include, among other things, provisions
ensuring that information requests to markets within the respective
jurisdiction of each agency are properly coordinated to minimize
duplicative information requests, and provisions regarding the treatment
of proprietary trading information.
``(2) Nothing in this section may be construed to limit or affect
the exclusive jurisdiction of the Commodity Futures Trading Commission
under the Commodity Exchange Act (7 U.S.C. 1 et seq.).
``(d)(1) The Commission shall not condition access to interstate
pipeline transportation on the reporting requirements of this section.
``(2) The Commission shall not require natural gas producers,
processors, or users who have a de minimis market presence to comply
with the reporting requirements of this section.
``(e)(1) Except as provided in paragraph (2), no person shall be
subject to any civil penalty under this section with respect to any
violation occurring more than 3 years before the date on which the
person is provided notice of the proposed penalty under section 22(b).
``(2) Paragraph (1) shall not apply in any case in which the
Commission finds that a seller that has entered into a contract for the
transportation or sale of natural gas subject to the jurisdiction of the
Commission has engaged in fraudulent market manipulation activities
materially affecting the contract in violation of section 4A.''.
[[Page 119 STAT. 693]]
SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.
(a) In General.--Not <<NOTE: Deadline.>> later than 1 year after the
date of enactment of this Act, the Secretary, in cooperation and
consultation with the Secretary of Transportation, the Secretary of
Homeland Security, the Federal Energy Regulatory Commission, and the
Governors of the Coastal States, shall convene not less than 3 forums on
liquefied natural gas.
(b) Requirements.--The forums shall--
(1) be located in areas where liquefied natural gas
facilities are under consideration;
(2) be designed to foster dialogue among Federal officials,
State and local officials, the general public, independent
experts, and industry representatives; and
(3) at a minimum, provide an opportunity for public
education and dialogue on--
(A) the role of liquefied natural gas in meeting
current and future United States energy supply
requirements and demand, in the context of the full
range of energy supply options;
(B) the Federal and State siting and permitting
processes;
(C) the potential risks and rewards associated with
importing liquefied natural gas;
(D) the Federal safety and environmental
requirements (including regulations) applicable to
liquefied natural gas;
(E) prevention, mitigation, and response strategies
for liquefied natural gas hazards; and
(F) additional issues as appropriate.
(c) Purpose.--The purpose of the forums shall be to identify and
develop best practices for addressing the issues and challenges
associated with liquefied natural gas imports, building on existing
cooperative efforts.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN INDIVIDUALS.
Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended by
adding at the end the following:
``(d) In any proceedings under subsection (a), the court may
prohibit, conditionally or unconditionally, and permanently or for such
period of time as the court determines, any individual who is engaged or
has engaged in practices constituting a violation of section 4A
(including related rules and regulations) from--
``(1) acting as an officer or director of a natural gas
company; or
``(2) engaging in the business of--
``(A) the purchasing or selling of natural gas; or
``(B) the purchasing or selling of transmission
services subject to the jurisdiction of the
Commission.''.
[[Page 119 STAT. 694]]
Subtitle C--Production
SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.
(a) Storage on the Outer Continental Shelf.--Section 5(a)(5) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1334(a)(5)) is amended by
inserting ``from any source'' after ``oil and gas''.
(b) Natural Gas Defined.--Section 3(13) of the Deepwater Port Act of
1974 (33 U.S.C. 1502(13)) is amended by adding at the end before the
semicolon the following: ``, natural gas liquids, liquefied petroleum
gas, and condensate recovered from natural gas''.
SEC. 322. HYDRAULIC FRACTURING.
Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (42
U.S.C. 300h(d)) is amended to read as follows:
``(1) Underground injection.--The term `underground
injection'--
``(A) means the subsurface emplacement of fluids by
well injection; and
``(B) excludes--
``(i) the underground injection of natural gas
for purposes of storage; and
``(ii) the underground injection of fluids or
propping agents (other than diesel fuels) pursuant
to hydraulic fracturing operations related to oil,
gas, or geothermal production activities.''.
SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.
Section 502 of the Federal Water Pollution Control Act (33 U.S.C.
1362) is amended by adding at the end the following:
``(24) Oil and gas exploration and production.--The term
`oil and gas exploration, production, processing, or treatment
operations or transmission facilities' means all field
activities or operations associated with exploration,
production, processing, or treatment operations, or transmission
facilities, including activities necessary to prepare a site for
drilling and for the movement and placement of drilling
equipment, whether or not such field activities or operations
may be considered to be construction activities.''.
Subtitle D--Naval Petroleum Reserve
SEC. 331. <<NOTE: 10 USC 7420 note.>> TRANSFER OF ADMINISTRATIVE
JURISDICTION AND ENVIRONMENTAL REMEDIATION, NAVAL PETROLEUM
RESERVE NUMBERED 2, KERN COUNTY, CALIFORNIA.
(a) Administration <<NOTE: Effective date.>> Jurisdiction Transfer
to Secretary of the Interior.--Effective on the date of the enactment of
this Act, administrative jurisdiction and control over all public domain
lands included within Naval Petroleum Reserve Numbered 2 located in Kern
County, California (other than the lands specified in subsection (b)),
are transferred from the Secretary to the Secretary of the Interior for
management, subject to subsection (c), in accordance with the laws
governing management of the public lands, and the regulations
promulgated under such laws, including the
[[Page 119 STAT. 695]]
Mineral Leasing Act (30 U.S.C. 181 et seq.) and the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1701 et seq.).
(b) Exclusion of Certain Reserve Lands.--The transfer of
administrative jurisdiction made by subsection (a) does not include the
following lands:
(1) That portion of Naval Petroleum Reserve Numbered 2
authorized for disposal under section 3403(a) of the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105-261; 10 U.S.C. 7420 note).
(2) That portion of the surface estate of Naval Petroleum
Reserve Numbered 2 conveyed to the City of Taft, California, by
section 333.
(c) Purpose of Transfer.--
(1) Production of hydrocarbon resources.--Notwithstanding
any other provision of law, the principal purpose of the lands
subject to transfer under subsection (a) is the production of
hydrocarbon resources, and the Secretary of the Interior shall
manage the lands in a fashion consistent with this purpose. In
managing the lands, the Secretary of the Interior shall regulate
operations to prevent unnecessary degradation and to provide for
ultimate economic recovery of the resources.
(2) Disposal authority and surface use.--The Secretary of
the Interior may make disposals of lands subject to transfer
under subsection (a), or allow commercial or non-profit surface
use of such lands, not to exceed 10 acres each, so long as the
disposals or surface uses do not materially interfere with the
ultimate economic recovery of the hydrocarbon resources of such
lands. All revenues received from the disposal of lands under
this paragraph or from allowing the surface use of such lands
shall be deposited in the Naval Petroleum Reserve Numbered 2
Lease Revenue Account established by section 332.
(d) Conforming Amendment.--Section 3403 of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 10 U.S.C. 7420 note) is amended by striking subsection (b).
SEC. 332. <<NOTE: 10 USC 7420 note.>> NAVAL PETROLEUM RESERVE NUMBERED 2
LEASE REVENUE ACCOUNT.
(a) Establishment.--There is established in the Treasury a special
deposit account to be known as the ``Naval Petroleum Reserve Numbered 2
Lease Revenue Account'' (in this section referred to as the ``lease
revenue account''). The lease revenue account is a revolving account,
and amounts in the lease revenue account shall be available to the
Secretary of the Interior, without further appropriation, for the
purposes specified in subsection (b).
(b) Purposes of Account.--
(1) Environmental-related costs.--The lease revenue account
shall be the sole and exclusive source of funds to pay for any
and all costs and expenses incurred by the United States for--
(A) environmental investigations (other than any
environmental investigations that were conducted by the
Secretary before the transfer of the Naval Petroleum
Reserve Numbered 2 lands under section 331),
remediation, compliance actions, response, waste
management, impediments, fines or penalties, or any
other costs or expenses
[[Page 119 STAT. 696]]
of any kind arising from, or relating to, conditions
existing on or below the Naval Petroleum Reserve
Numbered 2 lands, or activities occurring or having
occurred on such lands, on or before the date of the
transfer of such lands; and
(B) any future remediation necessitated as a result
of pre-transfer and leasing activities on such lands.
(2) Transition costs.--The lease revenue account shall also
be available for use by the Secretary of the Interior to pay for
transition costs incurred by the Department of the Interior
associated with the transfer and leasing of the Naval Petroleum
Reserve Numbered 2 lands.
(c) Funding.--The lease revenue account shall consist of the
following:
(1) Notwithstanding any other provision of law, for a period
of three years after the date of the transfer of the Naval
Petroleum Reserve Numbered 2 lands under section 331, the sum of
$500,000 per year of revenue from leases entered into before
that date, including bonuses, rents, royalties, and interest
charges collected pursuant to the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et. seq.), derived from
the Naval Petroleum Reserve Numbered 2 lands, shall be deposited
into the lease revenue account.
(2) Subject to subsection (d), all revenues derived from
leases on Naval Petroleum Reserve Numbered 2 lands issued on or
after the date of the transfer of such lands, including bonuses,
rents, royalties, and interest charges collected pursuant to the
Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1701 et seq.), shall be deposited into the lease revenue
account.
(d) Limitation.--Funds in the lease revenue account shall not exceed
$3,000,000 at any one time. Whenever funds in the lease revenue account
are obligated or expended so that the balance in the account falls below
that amount, lease revenues referred to in subsection (c)(2) shall be
deposited in the account to maintain a balance of $3,000,000.
(e) Termination of Account.--At <<NOTE: Certification.>> such time
as the Secretary of the Interior certifies that remediation of all
environmental contamination of Naval Petroleum Reserve Numbered 2 lands
in existence as of the date of the transfer of such lands under section
331 has been successfully completed, that all costs and expenses of
investigation, remediation, compliance actions, response, waste
management, impediments, fines, or penalties associated with
environmental contamination of such lands in existence as of the date of
the transfer have been paid in full, and that the transition costs of
the Department of the Interior referred to in subsection (b)(2) have
been paid in full, the lease revenue account shall be terminated and any
remaining funds shall be distributed in accordance with subsection (f).
(f) Distribution of <<NOTE: Applicability.>> Remaining Funds.--
Section 35 of the Mineral Leasing Act (30 U.S.C. 191) shall apply to the
payment and distribution of all funds remaining in the lease revenue
account upon its termination under subsection (e).
[[Page 119 STAT. 697]]
SEC. 333. <<NOTE: 10 USC 7420 note.>> LAND CONVEYANCE, PORTION OF NAVAL
PETROLEUM RESERVE NUMBERED 2, TO CITY OF TAFT, CALIFORNIA.
(a) Conveyance.--Effective <<NOTE: Effective date.>> on the date of
the enactment of this Act, there is conveyed to the City of Taft,
California (in this section referred to as the ``City''), all surface
right, title, and interest of the United States in and to a parcel of
real property consisting of approximately 220 acres located in the NE\1/
4\, the NE\1/4\ of the NW\1/4\, and the N\1/2\ of the SE\1/4\ of the
NW\1/4\ of section 18, township 32 south, range 24 east, Mount Diablo
meridian, Kern County, California.
(b) Consideration.--The conveyance under subsection (a) is made
without the payment of consideration by the City.
(c) Treatment of Existing Rights.--The conveyance under subsection
(a) is subject to valid existing rights, including Federal oil and gas
lease SAC-019577.
(d) Treatment of Minerals.--All coal, oil, gas, and other minerals
within the lands conveyed under subsection (a) are reserved to the
United States, except that the United States and its lessees, licensees,
permittees, or assignees shall have no right of surface use or occupancy
of the lands. Nothing in this subsection shall be construed to require
the United States or its lessees, licensees, permittees, or assignees to
support the surface of the conveyed lands.
(e) Indemnify and Hold Harmless.--The City shall indemnify, defend,
and hold harmless the United States for, from, and against, and the City
shall assume all responsibility for, any and all liability of any kind
or nature, including all loss, cost, expense, or damage, arising from
the City's use or occupancy of, or operations on, the land conveyed
under subsection (a), whether such use or occupancy of, or operations
on, occurred before or occur after the date of the enactment of this
Act.
(f) Instrument of Conveyance.--
Not <<NOTE: Deadline. Records.>> later than 1 year after the date of the
enactment of this Act, the Secretary shall execute, file, and cause to
be recorded in the appropriate office a deed or other appropriate
instrument documenting the conveyance made by this section.
SEC. 334. <<NOTE: Effective date. 10 USC 7420 note.>> REVOCATION OF LAND
WITHDRAWAL.
Effective on the date of the enactment of this Act, the Executive
Order of December 13, 1912, which created Naval Petroleum Reserve
Numbered 2, is revoked in its entirety.
Subtitle E--Production Incentives
SEC. 341. <<NOTE: 42 USC 15901.>> DEFINITION OF SECRETARY.
In this subtitle, the term ``Secretary'' means the Secretary of the
Interior.
SEC. 342. <<NOTE: 42 USC 15902.>> PROGRAM ON OIL AND GAS ROYALTIES IN-
KIND.
(a) Applicability of Section.--Notwithstanding any other provision
of law, this section applies to all royalty in-kind accepted by the
Secretary on or after the date of enactment of this Act under any
Federal oil or gas lease or permit under--
(1) section 36 of the Mineral Leasing Act (30 U.S.C. 192);
(2) section 27 of the Outer Continental Shelf Lands Act (43
U.S.C. 1353); or
[[Page 119 STAT. 698]]
(3) any other Federal law governing leasing of Federal land
for oil and gas development.
(b) Terms and Conditions.--All royalty accruing to the United States
shall, on the demand of the Secretary, be paid in-kind. If the Secretary
makes such a demand, the following provisions apply to the payment:
(1) Satisfaction of royalty obligation.--Delivery by, or on
behalf of, the lessee of the royalty amount and quality due
under the lease satisfies royalty obligation of the lessee for
the amount delivered, except that transportation and processing
reimbursements paid to, or deductions claimed by, the lessee
shall be subject to review and audit.
(2) Marketable condition.--
(A) Definition of marketable condition.--In this
paragraph, the term ``in marketable condition'' means
sufficiently free from impurities and otherwise in a
condition that the royalty production will be accepted
by a purchaser under a sales contract typical of the
field or area in which the royalty production was
produced.
(B) Requirement.--Royalty production shall be placed
in marketable condition by the lessee at no cost to the
United States.
(3) Disposition by the secretary.--The Secretary may--
(A) sell or otherwise dispose of any royalty
production taken in-kind (other than oil or gas
transferred under section 27(a)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)) for
not less than the market price; and
(B) transport or process (or both) any royalty
production taken in-kind.
(4) Retention by the secretary.--The Secretary may,
notwithstanding section 3302 of title 31, United States Code,
retain and use a portion of the revenues from the sale of oil
and gas taken in-kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use oil or gas received as royalty taken in-
kind (referred to in this paragraph as ``royalty production'')
to pay the cost of--
(A) transporting the royalty production;
(B) processing the royalty production;
(C) disposing of the royalty production; or
(D) any combination of transporting, processing, and
disposing of the royalty production.
(5) Limitation.--
(A) In general.--Except as provided in subparagraph
(B), the Secretary may not use revenues from the sale of
oil and gas taken in-kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(B) Exception.--Notwithstanding subparagraph (A),
the Secretary may use a portion of the revenues from
royalty in-kind sales, without fiscal year limitation,
to pay salaries and other administrative costs directly
related to the royalty in-kind program.
(c) Reimbursement of Cost.--If the lessee, pursuant to an agreement
with the United States or as provided in the lease, processes the
royalty gas or delivers the royalty oil or gas at a point not on or
adjacent to the lease area, the Secretary shall--
[[Page 119 STAT. 699]]
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) allow the lessee to deduct the transportation or
processing costs in reporting and paying royalties in-value for
other Federal oil and gas leases.
(d) Benefit to the United States Required.--The Secretary may
receive oil or gas royalties in-kind only if the Secretary determines
that receiving royalties in-kind provides benefits to the United States
that are greater than or equal to the benefits that are likely to have
been received had royalties been taken in-value.
(e) Reports.--
(1) In general.--Not later than September 30, 2006, the
Secretary shall submit to Congress a report that addresses--
(A) actions taken to develop business processes and
automated systems to fully support the royalty-in-kind
capability to be used in tandem with the royalty-in-
value approach in managing Federal oil and gas revenue;
and
(B) future royalty-in-kind businesses operation
plans and objectives.
(2) Reports on oil or gas royalties taken in-kind.--For each
of fiscal years 2006 through 2015 in which the United States
takes oil or gas royalties in-kind from production in any State
or from the outer Continental Shelf, excluding royalties taken
in-kind and sold to refineries under subsection (h), the
Secretary shall submit to Congress a report that describes--
(A) the 1 or more methodologies used by the
Secretary to determine compliance with subsection (d),
including the performance standard for comparing amounts
received by the United States derived from royalties in-
kind to amounts likely to have been received had
royalties been taken in-value;
(B) an explanation of the evaluation that led the
Secretary to take royalties in-kind from a lease or
group of leases, including the expected revenue effect
of taking royalties in-kind;
(C) actual amounts received by the United States
derived from taking royalties in-kind and costs and
savings incurred by the United States associated with
taking royalties in-kind, including administrative
savings and any new or increased administrative costs;
and
(D) an evaluation of other relevant public benefits
or detriments associated with taking royalties in-kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken in-
kind from a lease, the Secretary shall deduct amounts paid or
deducted under subsections (b)(4) and (c) and deposit the amount
of the deductions in the miscellaneous receipts of the Treasury.
(2) Accounting for deductions.--When the Secretary allows
the lessee to deduct transportation or processing costs under
subsection (c), the Secretary may not reduce any payments to
recipients of revenues derived from any other Federal oil and
gas lease as a consequence of that deduction.
[[Page 119 STAT. 700]]
(g) Consultation With States.--The Secretary--
(1) shall consult with a State before conducting a royalty
in-kind program under this subtitle within the State;
(2) may delegate management of any portion of the Federal
royalty in-kind program to the State except as otherwise
prohibited by Federal law; and
(3) shall consult annually with any State from which Federal
oil or gas royalty is being taken in-kind to ensure, to the
maximum extent practicable, that the royalty in-kind program
provides revenues to the State greater than or equal to the
revenues likely to have been received had royalties been taken
in-value.
(h) Small Refineries.--
(1) Preference.--If the Secretary finds that sufficient
supplies of crude oil are not available in the open market to
refineries that do not have their own source of supply for crude
oil, the Secretary may grant preference to those refineries in
the sale of any royalty oil accruing or reserved to the United
States under Federal oil and gas leases issued under any mineral
leasing law, for processing or use in those refineries at
private sale at not less than the market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary may, at
the discretion of the Secretary, prorate the oil among
refineries described in paragraph (1) in the area in which the
oil is produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in-kind from onshore oil and gas leases may be sold at
not less than the market price to any Federal agency.
(2) Offshore royalty.--Any royalty oil or gas taken in-kind
from a Federal oil or gas lease on the outer Continental Shelf
may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Federal Low-Income Energy Assistance Programs.--
(1) Preference.--In disposing of royalty oil or gas taken
in-kind under this section, the Secretary may grant a preference
to any person, including any Federal or State agency, for the
purpose of providing additional resources to any Federal low-
income energy assistance program.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit a report to
Congress--
(A) assessing the effectiveness of granting
preferences specified in paragraph (1); and
(B) providing a specific recommendation on the
continuation of authority to grant preferences.
SEC. 343. <<NOTE: 42 USC 15903.>> MARGINAL PROPERTY PRODUCTION
INCENTIVES.
(a) Definition of Marginal Property.--Until such time as the
Secretary issues regulations under subsection (e) that prescribe a
different definition, in this section, the term ``marginal property''
means an onshore unit, communitization agreement, or lease not within a
unit or communitization agreement, that produces on average the combined
equivalent of less than 15 barrels of oil per well per day or 90,000,000
British thermal units of gas per
[[Page 119 STAT. 701]]
well per day calculated based on the average over the 3 most recent
production months, including only wells that produce on more than half
of the days during those 3 production months.
(b) Conditions for Reduction of Royalty Rate.--Until such time as
the Secretary issues regulations under subsection (e) that prescribe
different standards or requirements, the Secretary shall reduce the
royalty rate on--
(1) oil production from marginal properties as prescribed in
subsection (c) if the spot price of West Texas Intermediate
crude oil at Cushing, Oklahoma, is, on average, less than $15
per barrel (adjusted in accordance with the Consumer Price Index
for all-urban consumers, United States city average, as
published by the Bureau of Labor Statistics) for 90 consecutive
trading days; and
(2) gas production from marginal properties as prescribed in
subsection (c) if the spot price of natural gas delivered at
Henry Hub, Louisiana, is, on average, less than $2.00 per
million British thermal units (adjusted in accordance with the
Consumer Price Index for all-urban consumers, United States city
average, as published by the Bureau of Labor Statistics) for 90
consecutive trading days.
(c) Reduced Royalty Rate.--
(1) In general.--When a marginal property meets the
conditions specified in subsection (b), the royalty rate shall
be the lesser of--
(A) 5 percent; or
(B) the applicable rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) Period of effectiveness.--The reduced royalty rate under
this subsection shall be effective beginning on the first day of
the production month following the date on which the applicable
condition specified in subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate prescribed
in subsection (c)(1) shall terminate--
(1) with respect to oil production from a marginal property,
on the first day of the production month following the date on
which--
(A) the spot price of West Texas Intermediate crude
oil at Cushing, Oklahoma, on average, exceeds $15 per
barrel (adjusted in accordance with the Consumer Price
Index for all-urban consumers, United States city
average, as published by the Bureau of Labor Statistics)
for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property; and
(2) with respect to gas production from a marginal property,
on the first day of the production month following the date on
which--
(A) the spot price of natural gas delivered at Henry
Hub, Louisiana, on average, exceeds $2.00 per million
British thermal units (adjusted in accordance with the
Consumer Price Index for all-urban consumers, United
States city average, as published by the Bureau of Labor
Statistics) for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property.
[[Page 119 STAT. 702]]
(e) Regulations Prescribing Different Relief.--
(1) Discretionary regulations.--The Secretary may by
regulation prescribe different parameters, standards, and
requirements for, and a different degree or extent of, royalty
relief for marginal properties in lieu of those prescribed in
subsections (a) through (d).
(2) Mandatory regulations.--Unless
a <<NOTE: Deadline.>> determination is made under paragraph (3),
not later than 18 months after the date of enactment of this
Act, the Secretary shall by regulation--
(A) prescribe standards and requirements for, and
the extent of royalty relief for, marginal properties
for oil and gas leases on the outer Continental Shelf;
and
(B) define what constitutes a marginal property on
the outer Continental Shelf for purposes of this
section.
(3) Report.--To the extent the Secretary determines that it
is not practicable to issue the regulations referred to in
paragraph (2), the Secretary shall provide a report to Congress
explaining such determination by not later than 18 months after
the date of enactment of this Act.
(4) Considerations.--In issuing regulations under this
subsection, the Secretary may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and the effects
of those provisions on production economics;
(E) other royalty relief programs;
(F) regional differences in average wellhead prices;
(G) national energy security issues; and
(H) other relevant matters, as determined by the
Secretary.
(f) Savings Provision.--Nothing in this section prevents a lessee
from receiving royalty relief or a royalty reduction pursuant to any
other law (including a regulation) that provides more relief than the
amounts provided by this section.
SEC. 344. <<NOTE: 42 USC 15904.>> INCENTIVES FOR NATURAL GAS PRODUCTION
FROM DEEP WELLS IN THE SHALLOW WATERS OF THE GULF OF MEXICO.
(a) Royalty Incentive Regulations for Ultra Deep Gas Wells.--
(1) In general.--Not <<NOTE: Deadline.>> later than 180 days
after the date of enactment of this Act, in addition to any
other regulations that may provide royalty incentives for
natural gas produced from deep wells on oil and gas leases
issued pursuant to the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.), the Secretary shall issue regulations
granting royalty relief suspension volumes of not less than 35
billion cubic feet with respect to the production of natural gas
from ultra deep wells on leases issued in shallow waters less
than 400 meters deep located in the Gulf of Mexico wholly west
of 87 degrees, 30 minutes west longitude. <<NOTE: Effective
date. Notices. Federal Register, publication.>> Regulations
issued under this subsection shall be retroactive to the date
that the notice of proposed rulemaking is published in the
Federal Register.
[[Page 119 STAT. 703]]
(2) Suspension volumes.--The Secretary may grant suspension
volumes of not less than 35 billion cubic feet in any case in
which--
(A) the ultra deep well is a sidetrack; or
(B) the lease has previously produced from wells
with a perforated interval the top of which is at least
15,000 feet true vertical depth below the datum at mean
sea level.
(3) Definitions.--In this subsection:
(A) Ultra deep well.--The term ``ultra deep well''
means a well drilled with a perforated interval, the top
of which is at least 20,000 true vertical depth below
the datum at mean sea level.
(B) Sidetrack.--
(i) In general.--The term ``sidetrack'' means
a well resulting from drilling an additional hole
to a new objective bottom-hole location by leaving
a previously drilled hole.
(ii) Inclusion.--The term ``sidetrack''
includes--
(I) drilling a well from a platform
slot reclaimed from a previously drilled
well;
(II) re-entering and deepening a
previously drilled well; and
(III) a bypass from a sidetrack,
including drilling around material
blocking a hole or drilling to
straighten a crooked hole.
(b) Royalty <<NOTE: Deadline.>> Incentive Regulations for Deep Gas
Wells.--Not later than 180 days after the date of enactment of this Act,
in addition to any other regulations that may provide royalty incentives
for natural gas produced from deep wells on oil and gas leases issued
pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.), the Secretary shall issue regulations granting royalty relief
suspension volumes with respect to production of natural gas from deep
wells on leases issued in waters more than 200 meters but less than 400
meters deep located in the Gulf of Mexico wholly west of 87 degrees, 30
minutes west longitude. The suspension volumes for deep wells within 200
to 400 meters of water depth shall be calculated using the same
methodology used to calculate the suspension volumes for deep wells in
the shallower waters of the Gulf of Mexico, and in no case shall the
suspension volumes for deep wells within 200 to 400 meters of water
depth be lower than those for deep wells in shallower
waters. <<NOTE: Effective date. Notices. Federal
Register, publication.>> Regulations issued under this subsection shall
be retroactive to the date that the notice of proposed rulemaking is
published in the Federal Register.
(c) Limitations.--The Secretary may place limitations on the royalty
relief granted under this section based on market price. The royalty
relief granted under this section shall not apply to a lease for which
deep water royalty relief is available.
SEC. 345. <<NOTE: 42 USC 15905.>> ROYALTY RELIEF FOR DEEP WATER
PRODUCTION.
(a) In General.--Subject to <<NOTE: Effective date.>> subsections
(b) and (c), for each tract located in water depths of greater than 400
meters in the Western and Central Planning Area of the Gulf of Mexico
(including the portion of the Eastern Planning Area of the Gulf of
Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude), any oil or gas lease sale under the Outer
[[Page 119 STAT. 704]]
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring during
the 5-year period beginning on the date of enactment of this Act shall
use the bidding system authorized under section 8(a)(1)(H) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
(b) Suspension of Royalties.--The suspension of royalties under
subsection (a) shall be established at a volume of not less than--
(1) 5,000,000 barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters;
(3) 12,000,000 barrels of oil equivalent for each lease in
water depths of 1,600 to 2,000 meters; and
(4) 16,000,000 barrels of oil equivalent for each lease in
water depths greater than 2,000 meters.
(c) Limitation.--The Secretary may place limitations on royalty
relief granted under this section based on market price.
SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in the Planning
Areas offshore Alaska'' after ``West longitude''.
SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN
ALASKA.
(a) Transfer of Authority.--
(1) Redesignation.--The Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.) is amended by redesignating
section 107 (42 U.S.C. 6507) as section 108.
(2) Transfer.--The <<NOTE: 42 USC 6506a.>> matter under the
heading ``exploration of national petroleum reserve in alaska''
under the heading ``energy and minerals'' of title I of Public
Law 96-514 (42 U.S.C. 6508) is--
(A) transferred to the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6501 et seq.);
(B) redesignated as section 107 of that Act; and
(C) moved so as to appear after section 106 of that
Act (42 U.S.C. 6506).
(b) Competitive Leasing.--Section 107 of the Naval Petroleum
Reserves Production Act of 1976 (as amended by subsection (a)(2)) is
amended--
(1) by striking the heading and all that follows through
``Provided, That (1) activities'' and inserting the following:
``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
``(a) In General.--The Secretary shall conduct an expeditious
program of competitive leasing of oil and gas in the Reserve in
accordance with this Act.
``(b) Mitigation of Adverse Effects.--Activities'';
(2) by striking ``Alaska (the Reserve); (2) the'' and
inserting ``Alaska''.
``(c) Land Use Planning; BLM Wilderness Study.--The'';
(3) by striking ``Reserve; (3) the'' and inserting
``Reserve''.
``(d) First Lease Sale.--The;'';
(4) by striking ``4332); (4) the'' and inserting ``4321 et
seq.)''.
``(e) Withdrawals.--The'';
[[Page 119 STAT. 705]]
(5) by striking ``herein; (5) bidding'' and inserting
``under this section''.
``(f) Bidding Systems.--Bidding'';
(6) by striking ``629); (6) lease'' and inserting ``629)''.
``(g) Geological Structures.--Lease'';
(7) by striking ``structures; (7) the'' and inserting
``structures''.
``(h) Size of Lease Tracts.--The'';
(8) by striking ``Secretary; (8)'' and all that follows
through ``Drilling, production,'' and inserting ``Secretary''.
``(i) <<NOTE: Deadlines.>> Terms.--
``(1) In general.--Each lease shall be issued for an initial
period of not more than 10 years, and shall be extended for so
long thereafter as oil or gas is produced from the lease in
paying quantities, oil or gas is capable of being produced in
paying quantities, or drilling or reworking operations, as
approved by the Secretary, are conducted on the leased land.
``(2) Renewal of leases with discoveries.--At the end of the
primary term of a lease the Secretary shall renew for an
additional 10-year term a lease that does not meet the
requirements of paragraph (1) if the lessee submits to the
Secretary an application for renewal not later than 60 days
before the expiration of the primary lease and the lessee
certifies, and the Secretary agrees, that hydrocarbon resources
were discovered on one or more wells drilled on the leased land
in such quantities that a prudent operator would hold the lease
for potential future development.
``(3) Renewal of leases without discoveries.--At the end of
the primary term of a lease the Secretary shall renew for an
additional 10-year term a lease that does not meet the
requirements of paragraph (1) if the lessee submits to the
Secretary an application for renewal not later than 60 days
before the expiration of the primary lease and pays the
Secretary a renewal fee of $100 per acre of leased land, and--
``(A) the lessee provides evidence, and the
Secretary agrees that, the lessee has diligently pursued
exploration that warrants continuation with the intent
of continued exploration or future potential development
of the leased land; or
``(B) all or part of the lease--
``(i) is part of a unit agreement covering a
lease described in subparagraph (A); and
``(ii) has not been previously contracted out
of the unit.
``(4) Applicability.--This subsection applies to a lease
that is in effect on or after the date of enactment of the
Energy Policy Act of 2005.
``(5) Expiration for <<NOTE: Deadline.>> failure to
produce.--Notwithstanding any other provision of this Act, if no
oil or gas is produced from a lease within 30 years after the
date of the issuance of the lease the lease shall expire.
``(6) Termination.--No lease issued under this section
covering lands capable of producing oil or gas in paying
quantities shall expire because the lessee fails to produce the
same due to circumstances beyond the control of the lessee.
``(j) Unit Agreements.--
[[Page 119 STAT. 706]]
``(1) In general.--For the purpose of conservation of the
natural resources of all or part of any oil or gas pool, field,
reservoir, or like area, lessees (including representatives) of
the pool, field, reservoir, or like area may unite with each
other, or jointly or separately with others, in collectively
adopting and operating under a unit agreement for all or part of
the pool, field, reservoir, or like area (whether or not any
other part of the oil or gas pool, field, reservoir, or like
area is already subject to any cooperative or unit plan of
development or operation), if the Secretary determines the
action to be necessary or advisable in the public interest. In
determining the public interest, the Secretary should consider,
among other things, the extent to which the unit agreement will
minimize the impact to surface resources of the leases and will
facilitate consolidation of facilities.
``(2) Consultation.--In making a determination under
paragraph (1), the Secretary shall consult with and provide
opportunities for participation by the State of Alaska or a
Regional Corporation (as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602)) with respect to
the creation or expansion of units that include acreage in which
the State of Alaska or the Regional Corporation has an interest
in the mineral estate.
``(3) Production allocation methodology.--(A) The Secretary
may use a production allocation methodology for each
participating area within a unit that includes solely Federal
land in the Reserve.
``(B) The Secretary shall use a production allocation
methodology for each participating area within a unit that
includes Federal land in the Reserve and non-Federal land based
on the characteristics of each specific oil or gas pool, field,
reservoir, or like area to take into account reservoir
heterogeneity and area variation in reservoir producibility
across diverse leasehold interests. The implementation of the
foregoing production allocation methodology shall be controlled
by agreement among the affected lessors and lessees.
``(4) Benefit of operations.--Drilling, production,'';
(9) by striking ``When separate'' and inserting the
following:
``(5) Pooling.--If separate'';
(10) by inserting ``(in consultation with the owners of the
other land)'' after ``determined by the Secretary of the
Interior'';
(11) by striking ``thereto; (10) to'' and all that follows
through ``the terms provided therein'' and inserting ``to the
agreement.
``(k) Exploration Incentives.--
``(1) In general.--
``(A) Waiver, suspension, or reduction.--To
encourage the greatest ultimate recovery of oil or gas
or in the interest of conservation, the Secretary may
waive, suspend, or reduce the rental fees or minimum
royalty, or reduce the royalty on an entire leasehold
(including on any lease operated pursuant to a unit
agreement), whenever (after consultation with the State
of Alaska and the North Slope Borough of Alaska and the
concurrence of any Regional Corporation for leases that
include land that was made available for acquisition by
the Regional Corporation under the provisions of section
1431(o) of the Alaska National
[[Page 119 STAT. 707]]
Interest Lands Conservation Act (16 U.S.C. 3101 et
seq.)) in the judgment of the Secretary it is necessary
to do so to promote development, or whenever in the
judgment of the Secretary the leases cannot be
successfully operated under the terms provided therein.
``(B) Applicability.--This paragraph applies to a
lease that is in effect on or after the date of
enactment of the Energy Policy Act of 2005.'';
(12) by striking ``The Secretary is authorized to'' and
inserting the following:
``(2) Suspension of operations and production.--The
Secretary may'';
(13) by striking ``In the event'' and inserting the
following:
``(3) Suspension of payments.--If'';
(14) by striking ``thereto; and (11) all'' and inserting
``to the lease.
``(l) Receipts.--All'';
(15) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively;
(16) by striking ``Any agency'' and inserting the following:
``(m) Explorations.--Any agency'';
(17) by striking ``Any action'' and inserting the following:
``(n) Environmental Impact Statements.--
``(1) Judicial review.--Any action'';
(18) by striking ``The detailed'' and inserting the
following:
``(2) Initial lease sales.--The detailed'';
(19) by striking ``section 104(b) of the Naval Petroleum
Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''
and inserting ``section 104(a)''; and
(20) by adding at the end the following:
``(o) Regulations.--As soon as practicable after the date of
enactment of the Energy Policy Act of 2005, the Secretary shall issue
regulations to implement this section.
``(p) Waiver of Administration for Conveyed Lands.--
``(1) In general.--Notwithstanding section 14(g) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1613(g))--
``(A) the Secretary of the Interior shall waive
administration of any oil and gas lease to the extent
that the lease covers any land in the Reserve in which
all of the subsurface estate is conveyed to the Arctic
Slope Regional Corporation (referred to in this
subsection as the `Corporation');
``(B)(i) in a case in which a conveyance of a
subsurface estate described in subparagraph (A) does not
include all of the land covered by the oil and gas
lease, the person that owns the subsurface estate in any
particular portion of the land covered by the lease
shall be entitled to all of the revenues reserved under
the lease as to that portion, including, without
limitation, all the royalty payable with respect to oil
or gas produced from or allocated to that portion;
``(ii) in a case described in clause (i), the
Secretary of the Interior shall--
``(I) segregate the lease into 2
leases, 1 of which shall cover only the
subsurface estate conveyed to the
Corporation; and
[[Page 119 STAT. 708]]
``(II) waive administration of the
lease that covers the subsurface estate
conveyed to the Corporation; and
``(iii) the segregation of the lease described
in clause (ii)(I) has no effect on the obligations
of the lessee under either of the resulting
leases, including obligations relating to
operations, production, or other circumstances
(other than payment of rentals or royalties); and
``(C) nothing in this subsection limits the
authority of the Secretary of the Interior to manage the
federally-owned surface estate within the Reserve.''.
(c) Conforming Amendments.--Section 104 of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6504) is amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) through (d) as
subsections (a) through (c), respectively.
SEC. 348. <<NOTE: Alaska. 42 USC 15906.>> NORTH SLOPE SCIENCE
INITIATIVE.
(a) Establishment.--
(1) In general.--The Secretary of the Interior shall
establish a long-term initiative to be known as the ``North
Slope Science Initiative'' (referred to in this section as the
``Initiative'').
(2) Purpose.--The purpose of the Initiative shall be to
implement efforts to coordinate collection of scientific data
that will provide a better understanding of the terrestrial,
aquatic, and marine ecosystems of the North Slope of Alaska.
(b) Objectives.--To ensure that the Initiative is conducted through
a comprehensive science strategy and implementation plan, the Initiative
shall, at a minimum--
(1) identify and prioritize information needs for inventory,
monitoring, and research activities to address the individual
and cumulative effects of past, ongoing, and anticipated
development activities and environmental change on the North
Slope;
(2) develop an understanding of information needs for
regulatory and land management agencies, local governments, and
the public;
(3) focus on prioritization of pressing natural resource
management and ecosystem information needs, coordination, and
cooperation among agencies and organizations;
(4) coordinate ongoing and future inventory, monitoring, and
research activities to minimize duplication of effort, share
financial resources and expertise, and assure the collection of
quality information;
(5) identify priority needs not addressed by agency science
programs in effect on the date of enactment of this Act and
develop a funding strategy to meet those needs;
(6) provide a consistent approach to high caliber science,
including inventory, monitoring, and research;
(7) maintain and improve public and agency access to--
(A) accumulated and ongoing research; and
(B) contemporary and traditional local knowledge;
and
[[Page 119 STAT. 709]]
(8) ensure through appropriate peer review that the science
conducted by participating agencies and organizations is of the
highest technical quality.
(c) Membership.--
(1) In general.--To ensure comprehensive collection of
scientific data, in carrying out the Initiative, the Secretary
shall consult and coordinate with Federal, State, and local
agencies that have responsibilities for land and resource
management across the North Slope.
(2) Cooperative agreements.--The Secretary shall enter into
cooperative agreements with the State of Alaska, the North Slope
Borough, the Arctic Slope Regional Corporation, and other
Federal agencies as appropriate to coordinate efforts, share
resources, and fund projects under this section.
(d) Science <<NOTE: Establishment.>> Technical Advisory Panel.--
(1) In general.--The Initiative shall include a panel to
provide advice on proposed inventory, monitoring, and research
functions.
(2) Membership.--The panel described in paragraph (1) shall
consist of a representative group of not more than 15 scientists
and technical experts from diverse professions and interests,
including the oil and gas industry, subsistence users, Native
Alaskan entities, conservation organizations, wildlife
management organizations, and academia, as determined by the
Secretary.
(e) Reports.--Not later than 3 years after the date of enactment of
this section and each year thereafter, the Secretary shall publish a
report that describes the studies and findings of the Initiative.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 349. <<NOTE: 42 USC 15907.>> ORPHANED, ABANDONED, OR IDLED WELLS ON
FEDERAL LAND.
(a) In General.--The <<NOTE: Deadline.>> Secretary, in cooperation
with the Secretary of Agriculture, shall establish a program not later
than 1 year after the date of enactment of this Act to remediate,
reclaim, and close orphaned, abandoned, or idled oil and gas wells
located on land administered by the land management agencies within the
Department of the Interior and the Department of Agriculture.
(b) Activities.--The program under subsection (a) shall--
(1) include a means of ranking orphaned, abandoned, or idled
wells sites for priority in remediation, reclamation, and
closure, based on public health and safety, potential
environmental harm, and other land use priorities;
(2) provide for identification and recovery of the costs of
remediation, reclamation, and closure from persons or other
entities currently providing a bond or other financial assurance
required under State or Federal law for an oil or gas well that
is orphaned, abandoned, or idled; and
(3) provide for recovery from the persons or entities
identified under paragraph (2), or their sureties or guarantors,
of the costs of remediation, reclamation, and closure of such
wells.
(c) Cooperation and Consultations.--In carrying out the program
under subsection (a), the Secretary shall--
[[Page 119 STAT. 710]]
(1) work cooperatively with the Secretary of Agriculture and
the States within which Federal land is located; and
(2) consult with the Secretary of Energy and the Interstate
Oil and Gas Compact Commission.
(d) Plan.--Not <<NOTE: Deadline.>> later than 1 year after the date
of enactment of this Act, the Secretary, in cooperation with the
Secretary of Agriculture, shall submit to Congress a plan for carrying
out the program under subsection (a).
(e) Idled Well.--For the purposes of this section, a well is idled
if--
(1) the well has been nonoperational for at least 7 years;
and
(2) there is no anticipated beneficial use for the well.
(f) Federal Reimbursement for Orphaned Well Reclamation Pilot
Program.--
(1) Reimbursement for remediating, reclaiming, and closing
wells on land subject to a new lease.--The Secretary shall carry
out a pilot program under which, in issuing a new oil and gas
lease on federally owned land on which 1 or more orphaned wells
are located, the Secretary--
(A) may require, other than as a condition of the
lease, that the lessee remediate, reclaim, and close in
accordance with standards established by the Secretary,
all orphaned wells on the land leased; and
(B) shall develop a program to reimburse a lessee,
through a royalty credit against the Federal share of
royalties owed or other means, for the reasonable actual
costs of remediating, reclaiming, and closing the
orphaned wells pursuant to that requirement.
(2) Reimbursement for reclaiming orphaned wells on other
land.--In carrying out this subsection, the Secretary--
(A) may authorize any lessee under an oil and gas
lease on federally owned land to reclaim in accordance
with the Secretary's standards--
(i) an orphaned well on unleased federally
owned land; or
(ii) an orphaned well located on an existing
lease on federally owned land for the reclamation
of which the lessee is not legally responsible;
and
(B) shall develop a program to provide reimbursement
of 100 percent of the reasonable actual costs of
remediating, reclaiming, and closing the orphaned well,
through credits against the Federal share of royalties
or other means.
(3) Regulations.--The Secretary may issue such regulations
as are appropriate to carry out this subsection.
(g) Technical Assistance Program for Non-Federal Land.--
(1) In general.--The Secretary of Energy shall establish a
program to provide technical and financial assistance to 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 or abandoned oil and
gas exploration or production well sites on State or private
land.
(2) Assistance.--The Secretary of Energy shall work with the
States, through the Interstate Oil and Gas Compact Commission,
to assist the States in quantifying and mitigating
[[Page 119 STAT. 711]]
environmental risks of onshore orphaned or abandoned oil or gas
wells on State and private land.
(3) Activities.--The program under paragraph (1) shall
include--
(A) mechanisms to facilitate identification, if
feasible, of the persons currently providing a bond or
other form of financial assurance required under State
or Federal law for an oil or gas well that is orphaned
or abandoned;
(B) criteria for ranking orphaned or abandoned well
sites based on factors such as public health and safety,
potential environmental harm, and other land use
priorities;
(C) information and training programs on best
practices for remediation of different types of sites;
and
(D) funding of State mitigation efforts on a cost-
shared basis.
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section $25,000,000 for each of fiscal years 2006
through 2010.
(2) Use.--Of the amounts authorized under paragraph (1),
$5,000,000 are authorized for each fiscal year for activities
under subsection (f).
SEC. 350. COMBINED HYDROCARBON LEASING.
(a) Special Provisions Regarding Leasing.--Section 17(b)(2) of the
Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) For any area that contains any combination of tar sand and oil
or gas (or both), the Secretary may issue under this Act, separately--
``(i) a lease for exploration for and extraction of tar
sand; and
``(ii) a lease for exploration for and development of oil
and gas.
``(C) A lease issued for tar sand shall be issued using the same
bidding process, annual rental, and posting period as a lease issued for
oil and gas, except that the minimum acceptable bid required for a lease
issued for tar sand shall be $2 per acre.
``(D) The Secretary may waive, suspend, or alter any requirement
under section 26 that a permittee under a permit authorizing prospecting
for tar sand must exercise due diligence, to promote any resource
covered by a combined hydrocarbon lease.''.
(b) Conforming Amendment.--Section 17(b)(1)(B) of the Mineral
Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the second sentence
by inserting ``, subject to paragraph (2)(B),'' after ``Secretary''.
(c) Regulations.--Not <<NOTE: Deadline. 30 USC 226 note.>> later
than 45 days after the date of enactment of this Act, the Secretary
shall issue final regulations to implement this section.
SEC. 351. <<NOTE: National Geographical and Geophysical Data
Preservation Program Act of 2005. 42 USC
15908.>> PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.
(a) Short Title.--This section may be cited as the ``National
Geological and Geophysical Data Preservation Program Act of 2005''.
[[Page 119 STAT. 712]]
(b) Program.--The Secretary shall carry out a National Geological
and Geophysical Data Preservation Program in accordance with this
section--
(1) to archive geologic, geophysical, and engineering data,
maps, well logs, and samples;
(2) to provide a national catalog of such archival material;
and
(3) to provide technical and financial assistance related to
the archival material.
(c) Plan.--Not <<NOTE: Deadline.>> later than 1 year after the date
of enactment of this Act, the Secretary shall submit to Congress a plan
for the implementation of the Program.
(d) Data Archive System.--
(1) Establishment.--The Secretary shall establish, as a
component of the Program, a data archive system to provide for
the storage, preservation, and archiving of subsurface, surface,
geological, geophysical, and engineering data and samples. The
Secretary, in consultation with the Advisory Committee, shall
develop guidelines relating to the data archive system,
including the types of data and samples to be preserved.
(2) System components.--The system shall be comprised of
State agencies that elect to be part of the system and agencies
within the Department of the Interior that maintain geological
and geophysical data and samples that are designated by the
Secretary in accordance with this subsection. The Program shall
provide for the storage of data and samples through data
repositories operated by such agencies.
(3) Limitation of designation.--The Secretary may not
designate a State agency as a component of the data archive
system unless that agency is the agency that acts as the
geological survey in the State.
(4) Data from federal land.--The data archive system shall
provide for the archiving of relevant subsurface data and
samples obtained from Federal land--
(A) in the most appropriate repository designated
under paragraph (2), with preference being given to
archiving data in the State in which the data were
collected; and
(B) consistent with all applicable law and
requirements relating to confidentiality and proprietary
data.
(e) National Catalog.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall develop and maintain,
as a component of the Program, a national catalog that
identifies--
(A) data and samples available in the data archive
system established under subsection (d);
(B) the repository for particular material in the
system; and
(C) the means of accessing the material.
(2) Availability.--The Secretary shall make the national
catalog accessible to the public on the site of the Survey on
the Internet, consistent with all applicable requirements
related to confidentiality and proprietary data.
(f) Advisory Committee.--
(1) In general.--The Advisory Committee shall advise the
Secretary on planning and implementation of the Program.
[[Page 119 STAT. 713]]
(2) New duties.--In addition to its duties under the
National Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.),
the Advisory Committee shall perform the following duties:
(A) Advise the Secretary on developing guidelines
and procedures for providing assistance for facilities
under subsection (g)(1).
(B) Review and critique the draft implementation
plan prepared by the Secretary under subsection (c).
(C) Identify useful studies of data archived under
the Program that will advance understanding of the
Nation's energy and mineral resources, geologic hazards,
and engineering geology.
(D) Review the progress of the Program in archiving
significant data and preventing the loss of such data,
and the scientific progress of the studies funded under
the Program.
(E) Include in the annual report to the Secretary
required under section 5(b)(3) of the National Geologic
Mapping Act of 1992 (43 U.S.C. 31d(b)(3)) an evaluation
of the progress of the Program toward fulfilling the
purposes of the Program under subsection (b).
(g) Financial Assistance.--
(1) Archive facilities.--Subject to the availability of
appropriations, the Secretary shall provide financial assistance
to a State agency that is designated under subsection (d)(2) for
providing facilities to archive energy material.
(2) Studies.--Subject to the availability of appropriations,
the Secretary shall provide financial assistance to any State
agency designated under subsection (d)(2) for studies and
technical assistance activities that enhance understanding,
interpretation, and use of materials archived in the data
archive system established under subsection (d).
(3) Federal share.--The Federal share of the cost of an
activity carried out with assistance under this subsection shall
be not more than 50 percent of the total cost of the activity.
(4) Private contributions.--
The <<NOTE: Applicability.>> Secretary shall apply to the non-
Federal share of the cost of an activity carried out with
assistance under this subsection the value of private
contributions of property and services used for that activity.
(h) Report.--The Secretary shall include in each report under
section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31g)--
(1) a description of the status of the Program;
(2) an evaluation of the progress achieved in developing the
Program during the period covered by the report; and
(3) any recommendations for legislative or other action the
Secretary considers necessary and appropriate to fulfill the
purposes of the Program under subsection (b).
(i) Maintenance of State Effort.--It is the intent of Congress that
the States not use this section as an opportunity to reduce State
resources applied to the activities that are the subject of the Program.
(j) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory Committee''
means the advisory committee established under section 5 of the
National Geologic Mapping Act of 1992 (43 U.S.C. 31d).
[[Page 119 STAT. 714]]
(2) Program.--The term ``Program'' means the National
Geological and Geophysical Data Preservation Program carried out
under this section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(4) Survey.--The term ``Survey'' means the United States
Geological Survey.
(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $30,000,000 for each of fiscal
years 2006 through 2010.
SEC. 352. 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: ``, and 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. 353. <<NOTE: 42 USC 15909.>> GAS HYDRATE PRODUCTION INCENTIVE.
(a) Purpose.--The purpose of this section is to promote natural gas
production from the natural gas hydrate resources on the outer
Continental Shelf and Federal lands in Alaska by providing royalty
incentives.
(b) Suspension of Royalties.--
(1) In general.--The Secretary may grant royalty relief in
accordance with this section for natural gas produced from gas
hydrate resources under an eligible lease.
(2) Eligible leases.--A lease shall be an eligible lease for
purposes of this section if--
(A) it is issued under the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.), or is an oil and gas
lease issued for onshore Federal lands in Alaska;
(B) it is issued prior to January 1, 2016; and
(C) production under the lease of natural gas from
gas hydrate resources commences prior to January 1,
2018.
(3) Amount of relief.--The Secretary shall conduct a
rulemaking and grant royalty relief under this section as a
suspension volume if the Secretary determines that such royalty
relief would encourage production of natural gas from gas
hydrate resources from an eligible lease. The maximum suspension
volume shall be 30 billion cubic feet of natural gas per lease.
Such relief shall be in addition to any other royalty relief
under any other provision applicable to the lease that does not
specifically grant a gas hydrate production incentive. Such
royalty suspension volume shall be applied to any eligible
production occurring on or after the date of publication of the
advanced notice of proposed rulemaking.
(4) Limitation.--The Secretary may place limitations on
royalty relief granted under this section based on market price.
(c) Application.--This section shall apply to any eligible lease
issued before, on, or after the date of enactment of this Act.
(d) Rulemakings.--
(1) Requirement.--
The <<NOTE: Publication. Notices. Deadlines.>> Secretary shall
publish the advanced notice of proposed rulemaking within 180
days after the date of enactment of this Act and complete the
rulemaking
[[Page 119 STAT. 715]]
implementing this section within 365 days after the date of
enactment of this Act.
(2) Gas hydrate resources defined.--Such regulations shall
define the term ``gas hydrate resources'' to include both the
natural gas content of gas hydrates within the hydrate stability
zone and free natural gas trapped by and beneath the hydrate
stability zone.
(e) Review.--Not <<NOTE: Deadline. Reports.>> later than 365 days
after the date of enactment of this Act, the Secretary, in consultation
with the Secretary of Energy, shall carry out a review of, and submit to
Congress a report on, further opportunities to enhance production of
natural gas from gas hydrate resources on the outer Continental Shelf
and on Federal lands in Alaska through the provision of other production
incentives or through technical or financial assistance.
SEC. 354. <<NOTE: 42 USC 15910.>> ENHANCED OIL AND NATURAL GAS
PRODUCTION THROUGH CARBON DIOXIDE INJECTION.
(a) Production Incentive.--
(1) Findings.--Congress finds the following:
(A) Approximately two-thirds of the original oil in
place in the United States remains unproduced.
(B) Enhanced oil and natural gas production from the
sequestering of carbon dioxide and other appropriate
gases has the potential to increase oil and natural gas
production.
(C) Capturing and productively using carbon dioxide
would help reduce the carbon intensity of the economy.
(2) Purpose.--The purpose of this section is--
(A) to promote the capturing, transportation, and
injection of produced carbon dioxide, natural carbon
dioxide, and other appropriate gases or other matter for
sequestration into oil and gas fields; and
(B) to promote oil and natural gas production from
the outer Continental Shelf and onshore Federal lands
under lease by providing royalty incentives to use
enhanced recovery techniques using injection of the
substances referred to in subparagraph (A).
(b) Suspension of Royalties.--
(1) In general.--If the Secretary determines that reduction
of the royalty under a Federal oil and gas lease that is an
eligible lease is in the public interest and promotes the
purposes of this section, the Secretary shall undertake a
rulemaking to provide for such reduction for an eligible lease.
(2) Rulemakings.--
The <<NOTE: Publication. Notices. Deadlines.>> Secretary shall
publish the advanced notice of proposed rulemaking within 180
days after the date of enactment of this Act and complete the
rulemaking implementing this section within 365 days after the
date of enactment of this Act.
(3) Eligible leases.--A lease shall be an eligible lease for
purposes of this section if--
(A) it is a lease for production of oil and gas from
the outer Continental Shelf or Federal onshore lands;
(B) the injection of the substances referred to in
subsection (a)(2)(A) will be used as an enhanced
recovery technique on such lease; and
(C) the Secretary determines that the lease contains
oil or gas that would not likely be produced without the
royalty reduction provided under this section.
[[Page 119 STAT. 716]]
(4) Amount of relief.--The rulemaking shall provide for a
suspension volume, which shall not exceed 5,000,000 barrels of
oil equivalent for each eligible lease. Such suspension volume
shall be applied to any production from an eligible lease
occurring on or after the date of publication of any advanced
notice of proposed rulemaking under this subsection.
(5) Limitation.--The Secretary may place limitations on the
royalty reduction granted under this section based on market
price.
(6) Application.--This section shall apply to any eligible
lease issued before, on, or after the date of enactment of this
Act.
(c) Demonstration Program.--
(1) Establishment.--
(A) In general.--The Secretary of Energy shall
establish a competitive grant program to provide grants
to producers of oil and gas to carry out projects to
inject carbon dioxide for the purpose of enhancing
recovery of oil or natural gas while increasing the
sequestration of carbon dioxide.
(B) Projects.--The demonstration program shall
provide for--
(i) not more than 10 projects in the Willistin
Basin in North Dakota and Montana; and
(ii) 1 project in the Cook Inlet Basin in
Alaska.
(2) Requirements.--
(A) In general.--The Secretary of Energy shall issue
requirements relating to applications for grants under
paragraph (1).
(B) Rulemaking.--The issuance of requirements under
subparagraph (A) shall not require a rulemaking.
(C) Minimum requirements.--At a minimum, the
Secretary shall require under subparagraph (A) that an
application for a grant include--
(i) a description of the project proposed in
the application;
(ii) an estimate of the production increase
and the duration of the production increase from
the project, as compared to conventional recovery
techniques, including water flooding;
(iii) an estimate of the carbon dioxide
sequestered by project, over the life of the
project;
(iv) a plan to collect and disseminate data
relating to each project to be funded by the
grant;
(v) a description of the means by which the
project will be sustainable without Federal
assistance after the completion of the term of the
grant;
(vi) a complete description of the costs of
the project, including acquisition, construction,
operation, and maintenance costs over the expected
life of the project;
(vii) a description of which costs of the
project will be supported by Federal assistance
under this section; and
(viii) a description of any secondary or
tertiary recovery efforts in the field and the
efficacy of water flood recovery techniques used.
[[Page 119 STAT. 717]]
(3) Partners.--An applicant for a grant under paragraph (1)
may carry out a project under a pilot program in partnership
with 1 or more other public or private entities.
(4) Selection criteria.--In evaluating applications under
this subsection, the Secretary of Energy shall--
(A) consider the previous experience with similar
projects of each applicant; and
(B) give priority consideration to applications
that--
(i) are most likely to maximize production of
oil and gas in a cost-effective manner;
(ii) sequester significant quantities of
carbon dioxide from anthropogenic sources;
(iii) demonstrate the greatest commitment on
the part of the applicant to ensure funding for
the proposed project and the greatest likelihood
that the project will be maintained or expanded
after Federal assistance under this section is
completed; and
(iv) minimize any adverse environmental
effects from the project.
(5) Demonstration program requirements.--
(A) Maximum amount.--The Secretary of Energy shall
not provide more than $3,000,000 in Federal assistance
under this subsection to any applicant.
(B) Cost sharing.--The Secretary of Energy shall
require cost-sharing under this subsection in accordance
with section 988.
(C) Period of grants.--
(i) In general.--A <<NOTE: Deadline.>> project
funded by a grant under this subsection shall
begin construction not later than 2 years after
the date of provision of the grant, but in any
case not later than December 31, 2010.
(ii) Term.--The Secretary shall not provide
grant funds to any applicant under this subsection
for a period of more than 5 years.
(6) Transfer of <<NOTE: Procedures.>> information and
knowledge.--The Secretary of Energy shall establish mechanisms
to ensure that the information and knowledge gained by
participants in the program under this subsection are
transferred among other participants and interested persons,
including other applicants that submitted applications for a
grant under this subsection.
(7) Schedule.--
(A) Publication.--Not <<NOTE: Deadline. Federal
Register, publication.>> later than 180 days after the
date of enactment of this Act, the Secretary of Energy
shall publish in the Federal Register, and elsewhere, as
appropriate, a request for applications to carry out
projects under this subsection.
(B) Date for applications.--
An <<NOTE: Deadline.>> application for a grant under
this subsection shall be submitted not later than 180
days after the date of publication of the request under
subparagraph (A).
(C) Selection.--After the date by which applications
for grants are required to be submitted under
subparagraph (B), the Secretary of Energy, in a timely
manner, shall select, after peer review and based on the
criteria under paragraph (4), those projects to be
awarded a grant under this subsection.
[[Page 119 STAT. 718]]
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.
(a) Assessment.--The Secretary of Energy shall assess the economic
implications of the dependence of the State of Hawaii on oil as the
principal source of energy for the State, including--
(1) the short- and long-term prospects for crude oil supply
disruption and price volatility and potential impacts on the
economy of Hawaii;
(2) the economic relationship between oil-fired generation
of electricity from residual fuel and refined petroleum products
consumed for ground, marine, and air transportation;
(3) the technical and economic feasibility of increasing the
contribution of renewable energy resources for generation of
electricity, on an island-by-island basis, including--
(A) siting and facility configuration;
(B) environmental, operational, and safety
considerations;
(C) the availability of technology;
(D) the effects on the utility system, including
reliability;
(E) infrastructure and transport requirements;
(F) community support; and
(G) other factors affecting the economic impact of
such an increase and any effect on the economic
relationship described in paragraph (2);
(4) the technical and economic feasibility of using
liquefied natural gas to displace residual fuel oil for electric
generation, including neighbor island opportunities, and the
effect of the displacement on the economic relationship
described in paragraph (2), including--
(A) the availability of supply;
(B) siting and facility configuration for onshore
and offshore liquefied natural gas receiving terminals;
(C) the factors described in subparagraphs (B)
through (F) of paragraph (3); and
(D) other economic factors;
(5) the technical and economic feasibility of using
renewable energy sources (including hydrogen) for ground,
marine, and air transportation energy applications to displace
the use of refined petroleum products, on an island-by-island
basis, and the economic impact of the displacement on the
relationship described in paragraph (2); and
(6) an island-by-island approach to--
(A) the development of hydrogen from renewable
resources; and
(B) the application of hydrogen to the energy needs
of Hawaii.
(b) Contracting Authority.--The Secretary of Energy may carry out
the assessment under subsection (a) directly or, in whole or in part,
through 1 or more contracts with qualified public or private entities.
[[Page 119 STAT. 719]]
(c) Report.--Not later than 300 days after the date of enactment of
this Act, the Secretary of Energy shall prepare (in consultation with
agencies of the State of Hawaii and other stakeholders, as appropriate),
and submit to Congress, a report describing the findings, conclusions,
and recommendations resulting from the assessment.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 356. <<NOTE: 42 USC 15911.>> DENALI COMMISSION.
(a) Definition of Commission.--In this section, the term
``Commission'' means the Denali Commission established by the Denali
Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105-277).
(b) Energy Programs.--The Commission shall use amounts made
available under subsection (d) to carry out energy programs, including--
(1) energy generation and development, including--
(A) fuel cells, hydroelectric, solar, wind, wave,
and tidal energy; and
(B) alternative energy sources;
(2) the construction of energy transmission, including
interties;
(3) the replacement and cleanup of fuel tanks;
(4) the construction of fuel transportation networks and
related facilities;
(5) power cost equalization programs; and
(6) projects using coal as a fuel, including coal
gasification projects.
(c) Open Meetings.--
(1) In general.--Except as provided in paragraph (2), a
meeting of the Commission shall be open to the public if--
(A) the Commission members take action on behalf of
the Commission; or
(B) the deliberations of the Commission determine,
or result in the joint conduct or disposition of,
official Commission business.
(2) Exceptions.--Paragraph (1) shall not apply to any
portion of a Commission meeting for which the Commission, in
public session, votes to close the meeting for the reasons
described in paragraph (2), (4), (5), or (6) of subsection (c)
of section 552b of title 5, United States Code.
(3) Public notice.--
(A) In general.--At <<NOTE: Deadline.>> least 1 week
before a meeting of the Commission, the Commission shall
make a public announcement of the meeting that
describes--
(i) the time, place, and subject matter of the
meeting;
(ii) whether the meeting is to be open or
closed to the public; and
(iii) the name and telephone number of an
appropriate person to respond to requests for
information about the meeting.
(B) Additional notice.--The Commission shall make a
public announcement of any change to the information
[[Page 119 STAT. 720]]
made available under subparagraph (A) at the earliest
practicable time.
(4) Minutes.--The Commission shall keep, and make available
to the public, a transcript, electronic recording, or minutes
from each Commission meeting, except for portions of the meeting
closed under paragraph (2).
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Commission not more than $55,000,000 for each of
fiscal years 2006 through 2015 to carry out subsection (b).
SEC. 357. <<NOTE: 42 USC 15912.>> COMPREHENSIVE INVENTORY OF OCS OIL AND
NATURAL GAS RESOURCES.
(a) In General.--The Secretary shall conduct an inventory and
analysis of oil and natural gas resources beneath all of the waters of
the United States Outer Continental Shelf (``OCS''). The inventory and
analysis shall--
(1) use available data on oil and gas resources in areas
offshore of Mexico and Canada that will provide information on
trends of oil and gas accumulation in areas of the OCS;
(2) use any available technology, except drilling, but
including 3-D seismic technology to obtain accurate resource
estimates;
(3) analyze how resource estimates in OCS areas have changed
over time in regards to gathering geological and geophysical
data, initial exploration, or full field development, including
areas such as the deepwater and subsalt areas in the Gulf of
Mexico;
(4) estimate the effect that understated oil and gas
resource inventories have on domestic energy investments; and
(5) identify and explain how legislative, regulatory, and
administrative programs or processes restrict or impede the
development of identified resources and the extent that they
affect domestic supply, such as moratoria, lease terms and
conditions, operational stipulations and requirements, approval
delays by the Federal Government and coastal States, and local
zoning restrictions for onshore processing facilities and
pipeline landings.
(b) Reports.--The Secretary shall submit a report to Congress on the
inventory of estimates and the analysis of restrictions or impediments,
together with any recommendations, within 6 months of the date of
enactment of the section. <<NOTE: Public information.>> The report shall
be publicly available and updated at least every 5 years.
Subtitle F--Access to Federal Lands
SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.
(a) Review of Onshore Oil and Gas Leasing Practices.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture with respect to
National Forest System lands under the jurisdiction of the
Department of Agriculture, shall perform an internal review of
current Federal onshore oil and gas leasing and permitting
practices.
(2) Inclusions.--The review shall include the process for--
(A) accepting or rejecting offers to lease;
[[Page 119 STAT. 721]]
(B) administrative appeals of decisions or orders of
officers or employees of the Bureau of Land Management
with respect to a Federal oil or gas lease;
(C) considering surface use plans of operation,
including the timeframes in which the plans are
considered, and any recommendations for improving and
expediting the process; and
(D) identifying stipulations to address site-
specific concerns and conditions, including those
stipulations relating to the environment and resource
use conflicts.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of the Interior and the Secretary of Agriculture
shall transmit a report to Congress that describes--
(1) actions taken under section 3 of Executive Order No.
13212 (42 U.S.C. 13201 note); and
(2) actions taken or any plans to improve the Federal
onshore oil and gas leasing program.
SEC. 362. <<NOTE: 42 USC 15921.>> MANAGEMENT OF FEDERAL OIL AND GAS
LEASING PROGRAMS.
(a) Timely Action on Leases and Permits.--
(1) Secretary of the interior.--To ensure timely action on
oil and gas leases and applications for permits to drill on land
otherwise available for leasing, the Secretary of the Interior
(referred to in this section as the ``Secretary'') shall--
(A) ensure expeditious compliance with section
102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)) and any other applicable
environmental and cultural resources laws;
(B) improve consultation and coordination with the
States and the public; and
(C) improve the collection, storage, and retrieval
of information relating to the oil and gas leasing
activities.
(2) Secretary of agriculture.--To ensure timely action on
oil and gas lease applications for permits to drill on land
otherwise available for leasing, the Secretary of Agriculture
shall--
(A) ensure expeditious compliance with all
applicable environmental and cultural resources laws;
and
(B) improve the collection, storage, and retrieval
of information relating to the oil and gas leasing
activities.
(b) Best Management Practices.--
(1) In general.--Not <<NOTE: Deadline.>> later than 18
months after the date of enactment of this Act, the Secretary
shall develop and implement best management practices to--
(A) improve the administration of the onshore oil
and gas leasing program under the Mineral Leasing Act
(30 U.S.C. 181 et seq.); and
(B) ensure timely action on oil and gas leases and
applications for permits to drill on land otherwise
available for leasing.
(2) Considerations.--In developing the best management
practices under paragraph (1), the Secretary shall consider any
recommendations from the review under section 361.
(3) Regulations.--Not <<NOTE: Deadline.>> later than 180
days after the development of the best management practices
under paragraph (1), the Secretary shall publish, for public
comment,
[[Page 119 STAT. 722]]
proposed regulations that set forth specific timeframes for
processing leases and applications in accordance with the best
management practices, including deadlines for--
(A) approving or disapproving--
(i) resource management plans and related
documents;
(ii) lease applications;
(iii) applications for permits to drill; and
(iv) surface use plans; and
(B) related administrative appeals.
(c) Improved Enforcement.--The Secretary and the Secretary of
Agriculture shall improve inspection and enforcement of oil and gas
activities, including enforcement of terms and conditions in permits to
drill on land under the jurisdiction of the Secretary and the Secretary
of Agriculture, respectively.
(d) Authorization of Appropriations.--In addition to amounts made
available to carry out activities relating to oil and gas leasing on
public land administered by the Secretary and National Forest System
land administered by the Secretary of Agriculture, there are authorized
to be appropriated for each of fiscal years 2006 through 2010--
(1) to the Secretary, acting through the Director of the
Bureau of Land Management--
(A) $40,000,000 to carry out subsections (a)(1) and
(b); and
(B) $20,000,000 to carry out subsection (c);
(2) to the Secretary, acting through the Director of the
United States Fish and Wildlife Service, $5,000,000 to carry out
subsection (a)(1); and
(3) to the Secretary of Agriculture, acting through the
Chief of the Forest Service, $5,000,000 to carry out subsections
(a)(2) and (c).
SEC. 363. <<NOTE: 42 USC 15922.>> CONSULTATION REGARDING OIL AND GAS
LEASING ON PUBLIC LAND.
(a) In General.--Not <<NOTE: Deadline. Memorandum.>> later than 180
days after the date of enactment of this Act, the Secretary of the
Interior and the Secretary of Agriculture shall enter into a memorandum
of understanding regarding oil and gas leasing on--
(1) public land under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System land under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall include
provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of--
(A) oil and gas lease applications;
(B) surface use plans of operation, including steps
for processing surface use plans; and
(C) applications for permits to drill consistent
with applicable timelines;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance efforts;
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
[[Page 119 STAT. 723]]
(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied;
(4) establish a joint data retrieval system that is capable
of--
(A) tracking applications and formal requests made
in accordance with procedures of the Federal onshore oil
and gas leasing program; and
(B) providing information regarding the status of
the applications and requests within the Department of
the Interior and the Department of Agriculture; and
(5) establish a joint geographic information system mapping
system for use in--
(A) tracking surface resource values to aid in
resource management; and
(B) processing surface use plans of operation and
applications for permits to drill.
SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL
LAND.
(a) Assessment.--Section 604 of the Energy Act of 2000 (42 U.S.C.
6217) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``reserve''; and
(ii) by striking ``and'' after the semicolon;
and
(B) by striking paragraph (2) and inserting the
following:
``(2) the extent and nature of any restrictions or
impediments to the development of the resources, including--
``(A) impediments to the timely granting of leases;
``(B) post-lease restrictions, impediments, or
delays on development for conditions of approval,
applications for permits to drill, or processing of
environmental permits; and
``(C) permits or restrictions associated with
transporting the resources for entry into commerce; and
``(3) the quantity of resources not produced or introduced
into commerce because of the restrictions.'';
(2) in subsection (b)--
(A) by striking ``reserve'' and inserting
``resource''; and
(B) by striking ``publically'' and inserting
``publicly''; and
(3) by striking subsection (d) and inserting the following:
``(d) Assessments.--Using the inventory, the Secretary of Energy
shall make periodic assessments of economically recoverable resources
accounting for a range of parameters such as current costs, commodity
prices, technology, and regulations.''.
(b) Methodology.--The <<NOTE: 42 USC 15923.>> Secretary of the
Interior shall use the same assessment methodology across all geological
provinces, areas, and regions in preparing and issuing national
geological assessments to ensure accurate comparisons of geological
resources.
SEC. 365. <<NOTE: 42 USC 15924.>> PILOT PROJECT TO IMPROVE FEDERAL
PERMIT COORDINATION.
(a) Establishment.--The Secretary of the Interior (referred to in
this section as the ``Secretary'') shall establish a Federal Permit
Streamlining Pilot Project (referred to in this section as the ``Pilot
Project'').
[[Page 119 STAT. 724]]
(b) Memorandum of Understanding.--
(1) In general.--Not <<NOTE: Deadline.>> later than 90 days
after the date of enactment of this Act, the Secretary shall
enter into a memorandum of understanding for purposes of this
section with--
(A) the Secretary of Agriculture;
(B) the Administrator of the Environmental
Protection Agency; and
(C) the Chief of Engineers.
(2) State participation.--The Secretary may request that the
Governors of Wyoming, Montana, Colorado, Utah, and New Mexico be
signatories to the memorandum of understanding.
(c) Designation of Qualified Staff.--
(1) In general.--Not <<NOTE: Deadline.>> later than 30 days
after the date of the signing of the memorandum of understanding
under subsection (b), all Federal signatory parties shall, if
appropriate, assign to each of the field offices identified in
subsection (d) an employee who has expertise in the regulatory
issues relating to the office in which the employee is employed,
including, as applicable, particular expertise in--
(A) the consultations and the preparation of
biological opinions under section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536);
(B) permits under section 404 of Federal Water
Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42
U.S.C. 7401 et seq.);
(D) planning under the National Forest Management
Act of 1976 (16 U.S.C. 472a et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) <<NOTE: Deadline.>> not later than 90 days after
the date of assignment, report to the Bureau of Land
Management Field Managers in the office to which the
employee is assigned;
(B) be responsible for all issues relating to the
jurisdiction of the home office or agency of the
employee; and
(C) participate as part of the team of personnel
working on proposed energy projects, planning, and
environmental analyses.
(d) Field Offices.--The following Bureau of Land Management Field
Offices shall serve as the Pilot Project offices:
(1) Rawlins, Wyoming.
(2) Buffalo, Wyoming.
(3) Miles City, Montana.
(4) Farmington, New Mexico.
(5) Carlsbad, New Mexico.
(6) Grand Junction/Glenwood Springs, Colorado.
(7) Vernal, Utah.
(e) Reports.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report that--
(1) outlines the results of the Pilot Project to date; and
(2) makes a recommendation to the President regarding
whether the Pilot Project should be implemented throughout the
United States.
[[Page 119 STAT. 725]]
(f) Additional Personnel.--The Secretary shall assign to each field
office identified in subsection (d) any additional personnel that are
necessary to ensure the effective implementation of--
(1) the Pilot Project; and
(2) other programs administered by the field offices,
including inspection and enforcement relating to energy
development on Federal land, in accordance with the multiple use
mandate of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.).
(g) Permit Processing Improvement Fund.--Section 35 of the Mineral
Leasing Act (30 U.S.C. 191) is amended by adding at the end the
following:
``(c)(1) Notwithstanding the first sentence of subsection (a), any
rentals received from leases in any State (other than the State of
Alaska) on or after the date of enactment of this subsection shall be
deposited in the Treasury, to be allocated in accordance with paragraph
(2).
``(2) Of the amounts deposited in the Treasury under paragraph (1)--
``(A) 50 percent shall be paid by the Secretary of the
Treasury to the State within the boundaries of which the leased
land is located or the deposits were derived; and
``(B) 50 percent shall be deposited in a special fund in the
Treasury, to be known as the `BLM Permit Processing Improvement
Fund' (referred to in this subsection as the `Fund').
``(3) For each of fiscal years 2006 through 2015, the Fund shall be
available to the Secretary of the Interior for expenditure, without
further appropriation and without fiscal year limitation, for the
coordination and processing of oil and gas use authorizations on onshore
Federal land under the jurisdiction of the Pilot Project offices
identified in section 365(d) of the Energy Policy Act of 2005.''.
(h) Transfer of Funds.--For the purposes of coordination and
processing of oil and gas use authorizations on Federal land under the
administration of the Pilot Project offices identified in subsection
(d), the Secretary may authorize the expenditure or transfer of such
funds as are necessary to--
(1) the United States Fish and Wildlife Service;
(2) the Bureau of Indian Affairs;
(3) the Forest Service;
(4) the Environmental Protection Agency;
(5) the Corps of Engineers; and
(6) the States of Wyoming, Montana, Colorado, Utah, and New
Mexico.
(i) Fees.--During the period in which the Pilot Project is
authorized, the Secretary shall not implement a rulemaking that would
enable an increase in fees to recover additional costs related to
processing drilling-related permit applications and use authorizations.
(j) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency whose employees are participating in the Pilot
Project.
[[Page 119 STAT. 726]]
SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by
adding at the end the following:
``(p) Deadlines for Consideration of Applications for Permits.--
``(1) In general.--Not <<NOTE: Notification.>> later than 10
days after the date on which the Secretary receives an
application for any permit to drill, the Secretary shall--
``(A) notify the applicant that the application is
complete; or
``(B) notify the applicant that information is
missing and specify any information that is required to
be submitted for the application to be complete.
``(2) Issuance or deferral.--Not later than 30 days after
the applicant for a permit has submitted a complete application,
the Secretary shall--
``(A) issue the permit, if the requirements under
the National Environmental Policy Act of 1969 and other
applicable law have been completed within such
timeframe; or
``(B) <<NOTE: Notice.>> defer the decision on the
permit and provide to the applicant a notice--
``(i) that specifies any steps that the
applicant could take for the permit to be issued;
and
``(ii) a list of actions that need to be taken
by the agency to complete compliance with
applicable law together with timelines and
deadlines for completing such actions.
``(3) Requirements for deferred applications.--
``(A) In general.--If the Secretary provides notice
under paragraph (2)(B), the applicant shall have a
period of 2 years from the date of receipt of the notice
in which to complete all requirements specified by the
Secretary, including providing information needed for
compliance with the National Environmental Policy Act of
1969.
``(B) Issuance of decision on permit.--If the
applicant completes the requirements within the period
specified in subparagraph (A), the Secretary shall issue
a decision on the permit not later than 10 days after
the date of completion of the requirements described in
subparagraph (A), unless compliance with the National
Environmental Policy Act of 1969 and other applicable
law has not been completed within such timeframe.
``(C) Denial of permit.--If the applicant does not
complete the requirements within the period specified in
subparagraph (A) or if the applicant does not comply
with applicable law, the Secretary shall deny the
permit.''.
SEC. 367. <<NOTE: 42 USC 15925.>> FAIR MARKET VALUE DETERMINATIONS FOR
LINEAR RIGHTS-OF-WAY ACROSS PUBLIC LANDS AND NATIONAL
FORESTS.
(a) Update of Fee Schedule.--Not <<NOTE: Deadline.>> later than 1
year after the date of enactment of this section--
(1) the Secretary of the Interior shall update section
2806.20 of title 43, Code of Federal Regulations, as in effect
on the date of enactment of this section, to revise the per
[[Page 119 STAT. 727]]
acre rental fee zone value schedule by State, county, and type
of linear right-of-way use to reflect current values of land in
each zone; and
(2) the Secretary of Agriculture shall make the same
revision for linear rights-of-way granted, issued, or renewed
under title V of the Federal Lands Policy and Management Act of
1976 (43 U.S.C. 1761 et seq.) on National Forest System land.
(b) Fair Market Value Rental Determination for Linear Rights-of-
way.--The fair market value rent of a linear right-of-way across public
lands or National Forest System lands issued under section 504 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764) or
section 28 of the Mineral Leasing Act (30 U.S.C. 185) shall be
determined in accordance with subpart 2806 of title 43, Code of Federal
Regulations, as in effect on the date of enactment of this section
(including the annual or periodic updates specified in the regulations)
and as updated in accordance with subsection (a).
SEC. 368. <<NOTE: 42 USC 15926.>> ENERGY RIGHT-OF-WAY CORRIDORS ON
FEDERAL LAND.
(a) Western States.--Not <<NOTE: Deadline.>> later than 2 years
after the date of enactment of this Act, the Secretary of Agriculture,
the Secretary of Commerce, the Secretary of Defense, the Secretary of
Energy, and the Secretary of the Interior (in this section referred to
collectively as ``the Secretaries''), in consultation with the Federal
Energy Regulatory Commission, States, tribal or local units of
governments as appropriate, affected utility industries, and other
interested persons, shall consult with each other and shall--
(1) designate, under their respective authorities, corridors
for oil, gas, and hydrogen pipelines and electricity
transmission and distribution facilities on Federal land in the
eleven contiguous Western States (as defined in section 103(o)
of the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1702(o));
(2) perform any environmental reviews that may be required
to complete the designation of such corridors; and
(3) incorporate the designated corridors into the relevant
agency land use and resource management plans or equivalent
plans.
(b) Other States.--Not <<NOTE: Deadline.>> later than 4 years after
the date of enactment of this Act, the Secretaries, in consultation with
the Federal Energy Regulatory Commission, affected utility industries,
and other interested persons, shall jointly--
(1) identify corridors for oil, gas, and hydrogen pipelines
and electricity transmission and distribution facilities on
Federal land in States other than those described in subsection
(a); and
(2) schedule prompt action to identify, designate, and
incorporate the corridors into the applicable land use plans.
(c) Ongoing Responsibilities.--
The <<NOTE: Procedures.>> Secretaries, in consultation with the Federal
Energy Regulatory Commission, affected utility industries, and other
interested parties, shall establish procedures under their respective
authorities that--
(1) ensure that additional corridors for oil, gas, and
hydrogen pipelines and electricity transmission and distribution
facilities on Federal land are promptly identified and
designated as necessary; and
[[Page 119 STAT. 728]]
(2) expedite applications to construct or modify oil, gas,
and hydrogen pipelines and electricity transmission and
distribution facilities within such corridors, taking into
account prior analyses and environmental reviews undertaken
during the designation of such corridors.
(d) Considerations.--In carrying out this section, the Secretaries
shall take into account the need for upgraded and new electricity
transmission and distribution facilities to--
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to deliver
electricity.
(e) Specifications of Corridor.--A corridor designated under this
section shall, at a minimum, specify the centerline, width, and
compatible uses of the corridor.
SEC. 369. <<NOTE: Oil Shale, Tar Sands, and Other Strategic
Unconventional Fuels Act of 2005. Deadlines. 42 USC
15927.>> OIL SHALE, TAR SANDS, AND OTHER STRATEGIC
UNCONVENTIONAL FUELS.
(a) Short Title.--This section may be cited as the ``Oil Shale, Tar
Sands, and Other Strategic Unconventional Fuels Act of 2005''.
(b) Declaration of Policy.--Congress declares that it is the policy
of the United States that--
(1) United States oil shale, tar sands, and other
unconventional fuels are strategically important domestic
resources that should be developed to reduce the growing
dependence of the United States on politically and economically
unstable sources of foreign oil imports;
(2) the development of oil shale, tar sands, and other
strategic unconventional fuels, for research and commercial
development, should be conducted in an environmentally sound
manner, using practices that minimize impacts; and
(3) development of those strategic unconventional fuels
should occur, with an emphasis on sustainability, to benefit the
United States while taking into account affected States and
communities.
(c) Leasing Program for Research and Development of Oil Shale and
Tar Sands.--In accordance with section 21 of the Mineral Leasing Act (30
U.S.C. 241) and any other applicable law, except as provided in this
section, not later than 180 days after the date of enactment of this
Act, from land otherwise available for leasing, the Secretary of the
Interior (referred to in this section as the ``Secretary'') shall make
available for leasing such land as the Secretary considers to be
necessary to conduct research and development activities with respect to
technologies for the recovery of liquid fuels from oil shale and tar
sands resources on public lands. Prospective public lands within each of
the States of Colorado, Utah, and Wyoming shall be made available for
such research and development leasing.
(d) Programmatic Environmental Impact Statement and Commercial
Leasing Program for Oil Shale and Tar Sands.--
(1) Programmatic environmental impact statement.--Not later
than 18 months after the date of enactment of this Act, in
accordance with section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the Secretary shall
complete a programmatic environmental impact statement for a
commercial leasing program for oil shale and tar sands resources
on public lands, with an emphasis on
[[Page 119 STAT. 729]]
the most geologically prospective lands within each of the
States of Colorado, Utah, and Wyoming.
(2) Final regulation.--Not later than 6 months after the
completion of the programmatic environmental impact statement
under this subsection, the Secretary shall publish a final
regulation establishing such program.
(e) Commencement of Commercial Leasing of Oil Shale and Tar Sands.--
Not later than 180 days after publication of the final regulation
required by subsection (d), the Secretary shall consult with the
Governors of States with significant oil shale and tar sands resources
on public lands, representatives of local governments in such States,
interested Indian tribes, and other interested persons, to determine the
level of support and interest in the States in the development of tar
sands and oil shale resources. If the Secretary finds sufficient support
and interest exists in a State, the Secretary may conduct a lease sale
in that State under the commercial leasing program regulations. Evidence
of interest in a lease sale under this subsection shall include, but not
be limited to, appropriate areas nominated for leasing by potential
lessees and other interested parties.
(f) Diligent Development Requirements.--
The <<NOTE: Regulations.>> Secretary shall, by regulation, designate
work requirements and milestones to ensure the diligent development of
the lease.
(g) Initial Report by the Secretary of the Interior.--Within 90 days
after the date of enactment of this Act, the Secretary of the Interior
shall report to the Committee on Resources of the House of
Representatives and the Committee on Energy and Natural Resources of the
Senate on--
(1) the interim actions necessary to--
(A) develop the program, complete the programmatic
environmental impact statement, and promulgate the final
regulation as required by subsection (d); and
(B) conduct the first lease sales under the program
as required by subsection (e); and
(2) a schedule to complete such actions within the time
limits mandated by this section.
(h) Task Force.--
(1) Establishment.--The Secretary of Energy, in cooperation
with the Secretary of the Interior and the Secretary of Defense,
shall establish a task force to develop a program to coordinate
and accelerate the commercial development of strategic
unconventional fuels, including but not limited to oil shale and
tar sands resources within the United States, in an integrated
manner.
(2) Composition.--The Task Force shall be composed of--
(A) the Secretary of Energy (or the designee of the
Secretary);
(B) the Secretary of the Interior (or the designee
of the Secretary of the Interior);
(C) the Secretary of Defense (or the designee of the
Secretary of Defense);
(D) the Governors of affected States; and
(E) representatives of local governments in affected
areas.
(3) Recommendations.--The Task Force shall make such
recommendations regarding promoting the development of the
[[Page 119 STAT. 730]]
strategic unconventional fuels resources within the United
States as it may deem appropriate.
(4) Partnerships.--The Task Force shall make recommendations
with respect to initiating a partnership with the Province of
Alberta, Canada, for purposes of sharing information relating to
the development and production of oil from tar sands, and
similar partnerships with other nations that contain significant
oil shale resources.
(5) Reports.--
(A) Initial report.--Not later than 180 days after
the date of enactment of this Act, the Task Force shall
submit to the President and Congress a report that
describes the analysis and recommendations of the Task
Force.
(B) Subsequent reports.--The Secretary shall provide
an annual report describing the progress in developing
the strategic unconventional fuels resources within the
United States for each of the 5 years following
submission of the report provided for in subparagraph
(A).
(i) Office of <<NOTE: Establishment.>> Petroleum Reserves.--
(1) In general.--The Office of Petroleum Reserves of the
Department of Energy shall--
(A) coordinate the creation and implementation of a
commercial strategic fuel development program for the
United States;
(B) evaluate the strategic importance of
unconventional sources of strategic fuels to the
security of the United States;
(C) promote and coordinate Federal Government
actions that facilitate the development of strategic
fuels in order to effectively address the energy supply
needs of the United States;
(D) identify, assess, and recommend appropriate
actions of the Federal Government required to assist in
the development and manufacturing of strategic fuels;
and
(E) coordinate and facilitate appropriate
relationships between private industry and the Federal
Government to promote sufficient and timely private
investment to commercialize strategic fuels for domestic
and military use.
(2) Consultation and coordination.--The Office of Petroleum
Reserves shall work closely with the Task Force and coordinate
its staff support.
(3) Annual reports.--Not later than 180 days after the date
of enactment of this Act and annually thereafter, the Secretary
shall submit to Congress a report that describes the activities
of the Office of Petroleum Reserves carried out under this
subsection.
(j) Mineral Leasing Act Amendments.--
(1) Section 17.--Section 17(b)(2) of the Mineral Leasing Act
(30 U.S.C. 226(b)(2)), as amended by section 350, is further
amended--
(A) in subparagraph (A) (as designated by the
amendment made by subsection (a)(1) of that section) by
designating the first, second, and third sentences as
clauses (i), (ii), and (iii), respectively;
(B) by moving clause (ii), as so designated, so as
to begin immediately after and below clause (i);
[[Page 119 STAT. 731]]
(C) by moving clause (iii), as so designated, so as
to begin immediately after and below clause (ii);
(D) in clause (i) of subparagraph (A) (as designated
by subparagraph (A) of this paragraph) by striking
``five thousand one hundred and twenty'' and inserting
``5,760''; and
(E) by adding at the end the following:
``(iv) No lease issued under this paragraph shall be
included in any chargeability limitation associated with oil and
gas leases.''.
(2) Section 21.--Section 21(a) of the Mineral Leasing Act
(30 U.S.C. 241(a)) is amended--
(A) by striking ``(a) That the Secretary'' and
inserting the following:
``(a)(1) The Secretary'';
(B) by striking ``; that no lease'' and inserting a
period, followed by the following:
``(2) No lease'';
(C) by striking ``Leases may be for'' and inserting
the following:
``(3) Leases may be for'';
(D) by striking ``For the privilege'' and inserting
the following:
``(4) For the privilege'';
(E) in paragraph (2) (as designated by subparagraph
(B) of this paragraph) by striking ``five thousand one
hundred and twenty'' and inserting ``5,760'';
(F) in paragraph (4) (as designated by subparagraph
(D) of this paragraph) by striking ``rate of 50 cents
per acre'' and inserting ``rate of $2.00 per acre'';
(G)(i) by striking ``: Provided further, That not
more than one lease shall be granted under this section
to any'' and inserting ``: Provided further, That no'';
and
(ii) by striking ``except that with respect to
leases for'' and inserting ``shall acquire or hold more
than 50,000 acres of oil shale leases in any one State.
For''; and
(H) by adding at the end the following:
``(5) No lease issued under this section shall be included
in any chargeability limitation associated with oil and gas
leases.''.
(k) Interagency Coordination and Expeditious Review of Permitting
Process.--
(1) Department of the interior as lead agency.--Upon written
request of a prospective applicant for Federal authorization to
develop a proposed oil shale or tar sands project, the
Department of the Interior shall act as the lead Federal agency
for the purposes of coordinating all applicable Federal
authorizations and environmental reviews. To the maximum extent
practicable under applicable Federal law, the Secretary shall
coordinate this Federal authorization and review process with
any Indian tribes and State and local agencies responsible for
conducting any separate permitting and environmental reviews.
(2) Implementing regulations.--Not later than 6 months after
the date of enactment of this Act, the Secretary shall issue any
regulations necessary to implement this subsection.
(l) Cost-shared Demonstration Technologies.--
[[Page 119 STAT. 732]]
(1) Identification.--The Secretary of Energy shall identify
technologies for the development of oil shale and tar sands
that--
(A) are ready for demonstration at a commercially-
representative scale; and
(B) have a high probability of leading to commercial
production.
(2) Assistance.--For each technology identified under
paragraph (1), the Secretary of Energy may provide--
(A) technical assistance;
(B) assistance in meeting environmental and
regulatory requirements; and
(C) cost-sharing assistance.
(m) National Oil Shale and Tar Sands Assessment.--
(1) Assessment.--
(A) In general.--The Secretary shall carry out a
national assessment of oil shale and tar sands resources
for the purposes of evaluating and mapping oil shale and
tar sands deposits, in the geographic areas described in
subparagraph (B). In conducting such an assessment, the
Secretary shall make use of the extensive geological
assessment work for oil shale and tar sands already
conducted by the United States Geological Survey.
(B) Geographic areas.--The geographic areas referred
to in subparagraph (A), listed in the order in which the
Secretary shall assign priority, are--
(i) the Green River Region of the States of
Colorado, Utah, and Wyoming;
(ii) the Devonian oil shales and other
hydrocarbon-bearing rocks having the nomenclature
of ``shale'' located east of the Mississippi
River; and
(iii) any remaining area in the central and
western United States (including the State of
Alaska) that contains oil shale and tar sands, as
determined by the Secretary.
(2) Use of state surveys and universities.--In carrying out
the assessment under paragraph (1), the Secretary may request
assistance from any State-administered geological survey or
university.
(n) Land Exchanges.--
(1) In general.--To facilitate the recovery of oil shale and
tar sands, especially in areas where Federal, State, and private
lands are intermingled, the Secretary shall consider the use of
land exchanges where appropriate and feasible to consolidate
land ownership and mineral interests into manageable areas.
(2) Identification and priority of public lands.--The
Secretary shall identify public lands containing deposits of oil
shale or tar sands within the Green River, Piceance Creek,
Uintah, and Washakie geologic basins, and shall give priority to
implementing land exchanges within those basins. The Secretary
shall consider the geology of the respective basin in
determining the optimum size of the lands to be consolidated.
(3) Compliance with section 206 of flpma.--A land exchange
undertaken in furtherance of this subsection shall be
implemented in accordance with section 206 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1716).
[[Page 119 STAT. 733]]
(o) Royalty Rates for Leases.--The Secretary shall establish
royalties, fees, rentals, bonus, or other payments for leases under this
section that shall--
(1) encourage development of the oil shale and tar sands
resource; and
(2) ensure a fair return to the United States.
(p) Heavy Oil Technical and Economic Assessment.--The Secretary of
Energy shall update the 1987 technical and economic assessment of
domestic heavy oil resources that was prepared by the Interstate Oil and
Gas Compact Commission. Such an update should include all of North
America and cover all unconventional oil, including heavy oil, tar sands
(oil sands), and oil shale.
(q) Procurement of Unconventional Fuels by the Department of
Defense.--
(1) In general.--Chapter 141 of title 10, United States
Code, is amended by inserting after section 2398 the following:
``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar
sands
``(a) Use of Fuel to Meet Department of Defense Needs.--The
Secretary of Defense shall develop a strategy to use fuel produced, in
whole or in part, from coal, oil shale, and tar sands (referred to in
this section as a `covered fuel') that are extracted by either mining or
in-situ methods and refined or otherwise processed in the United States
in order to assist in meeting the fuel requirements of the Department of
Defense when the Secretary determines that it is in the national
interest.
``(b) Authority to Procure.--The Secretary of Defense may enter into
1 or more contracts or other agreements (that meet the requirements of
this section) to procure a covered fuel to meet 1 or more fuel
requirements of the Department of Defense.
``(c) Clean Fuel Requirements.--A covered fuel may be procured under
subsection (b) only if the covered fuel meets such standards for clean
fuel produced from domestic sources as the Secretary of Defense shall
establish for purposes of this section in consultation with the
Department of Energy.
``(d) Multiyear Contract Authority.--Subject to applicable
provisions of law, any contract or other agreement for the procurement
of covered fuel under subsection (b) may be for 1 or more years at the
election of the Secretary of Defense.
``(e) Fuel Source Analysis.--In order to facilitate the procurement
by the Department of Defense of covered fuel under subsection (b), the
Secretary of Defense may carry out a comprehensive assessment of current
and potential locations in the United States for the supply of covered
fuel to the Department.''.
(2) Clerical amendment.--The table of sections for chapter
141 of title 10, United States Code, is amended by inserting
after the item relating to section 2398 the following:
``2398a. Procurement of fuel derived from coal, oil shale, and tar
sands.''.
(r) State Water Rights.--Nothing in this section preempts or affects
any State water law or interstate compact relating to water.
(s) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
[[Page 119 STAT. 734]]
SEC. 370. FINGER LAKES WITHDRAWAL.
All Federal land within the boundary of Finger Lakes National Forest
in the State of New York is withdrawn from--
(1) all forms of entry, appropriation, or disposal under the
public land laws; and
(2) disposition under all laws relating to oil and gas
leasing.
SEC. 371. <<NOTE: 30 USC 188 note.>> REINSTATEMENT OF LEASES.
(a) Leases <<NOTE: Effective date. Termination date.>> Terminated
for Certain Failure to Pay Rental.--Notwithstanding section 31(d)(2)(B)
of the Mineral Leasing Act (30 U.S.C. 188(d)(2)(B)) as in effect before
the effective date of this section, and notwithstanding the amendment
made by subsection (b) of this section, the Secretary of the Interior
may reinstate any oil and gas lease issued under that Act that was
terminated for failure of a lessee to pay the full amount of rental on
or before the anniversary date of the lease, during the period beginning
on September 1, 2001, and ending on June 30, 2004, if--
(1) <<NOTE: Deadline.>> not later than 120 days after the
date of enactment of this Act, the lessee--
(A) files a petition for reinstatement of the lease;
(B) complies with the conditions of section 31(e) of
the Mineral Leasing Act (30 U.S.C. 188(e)); and
(C) <<NOTE: Certification.>> certifies that the
lessee did not receive a notice of termination by the
date that was 13 months before the date of termination;
and
(2) the land is available for leasing.
(b) Deadline for Petitions, Generally.--Section 31(d)(2) of the
Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by striking
subparagraphs (A) and (B) and inserting the following:
``(A) with respect to any lease that terminated
under subsection (b) on or before the date of the
enactment of the Energy Policy Act of 2005, a petition
for reinstatement (together with the required back
rental and royalty accruing after the date of
termination) is filed on or before the earlier of--
``(i) 60 days after the lessee receives from
the Secretary notice of termination, whether by
return of check or by any other form of actual
notice; or
``(ii) 15 months after the termination of the
lease; or
``(B) with respect to any lease that terminates
under subsection (b) after the date of the enactment of
the Energy Policy Act of 2005, a petition for
reinstatement (together with the required back rental
and royalty accruing after the date of termination) is
filed on or before the earlier of--
``(i) 60 days after receipt of the notice of
termination sent by the Secretary by certified
mail to all lessees of record; or
``(ii) 24 months after the termination of the
lease.''.
SEC. 372. <<NOTE: 42 USC 15928.>> CONSULTATION REGARDING ENERGY RIGHTS-
OF-WAY ON PUBLIC LAND.
(a) Memorandum of Understanding.--
[[Page 119 STAT. 735]]
(1) In general.--Not <<NOTE: Deadline.>> later than 6 months
after the date of enactment of this Act, the Secretary of
Energy, in consultation with the Secretary of the Interior, the
Secretary of Agriculture, and the Secretary of Defense with
respect to lands under their respective jurisdictions, shall
enter into a memorandum of understanding to coordinate all
applicable Federal authorizations and environmental reviews
relating to a proposed or existing utility facility. To the
maximum extent practicable under applicable law, the Secretary
of Energy shall, to ensure timely review and permit decisions,
coordinate such authorizations and reviews with any Indian
tribes, multi-State entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the affected utility facility.
(2) Contents.--The memorandum of understanding shall include
provisions that--
(A) establish--
(i) a unified right-of-way application form;
and
(ii) an administrative procedure for
processing right-of-way applications, including
lines of authority, steps in application
processing, and timeframes for application
processing;
(B) provide for coordination of planning relating to
the granting of the rights-of-way;
(C) provide for an agreement among the affected
Federal agencies to prepare a single environmental
review document to be used as the basis for all Federal
authorization decisions; and
(D) provide for coordination of use of right-of-way
stipulations to achieve consistency.
(b) Natural Gas Pipelines.--
(1) In general.--With respect to permitting activities for
interstate natural gas pipelines, the May 2002 document entitled
``Interagency Agreement On Early Coordination Of Required
Environmental And Historic Preservation Reviews Conducted In
Conjunction With The Issuance Of Authorizations To Construct And
Operate Interstate Natural Gas Pipelines Certificated By The
Federal Energy Regulatory Commission'' shall constitute
compliance with subsection (a).
(2) Report.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, and every 2 years
thereafter, agencies that are signatories to the
document referred to in paragraph (1) shall transmit to
Congress a report on how the agencies under the
jurisdiction of the Secretaries are incorporating and
implementing the provisions of the document referred to
in paragraph (1).
(B) Contents.--The report shall address--
(i) efforts to implement the provisions of the
document referred to in paragraph (1);
(ii) whether the efforts have had a
streamlining effect;
(iii) further improvements to the permitting
process of the agency; and
(iv) recommendations for inclusion of State
and tribal governments in a coordinated permitting
process.
[[Page 119 STAT. 736]]
(c) Definition of Utility Facility.--In this section, the term
``utility facility'' means any privately, publicly, or cooperatively
owned line, facility, or system--
(1) for the transportation of--
(A) oil, natural gas, synthetic liquid fuel, or
gaseous fuel;
(B) any refined product produced from oil, natural
gas, synthetic liquid fuel, or gaseous fuel; or
(C) products in support of the production of
material referred to in subparagraph (A) or (B);
(2) for storage and terminal facilities in connection with
the production of material referred to in paragraph (1); or
(3) for the generation, transmission, and distribution of
electric energy.
SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER
PADRE ISLAND NATIONAL SEASHORE.
(a) Findings.--Congress finds the following:
(1) Pursuant to Public Law 87-712 (16 U.S.C. 459d et seq.;
popularly known as the ``Federal Enabling Act'') and various
deeds and actions under that Act, the United States is the owner
of only the surface estate of certain lands constituting the
Padre Island National Seashore.
(2) Ownership of the oil, gas, and other minerals in the
subsurface estate of the lands constituting the Padre Island
National Seashore was never acquired by the United States, and
ownership of those interests is held by the State of Texas and
private parties.
(3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
(A) expressly contemplated that the United States
would recognize the ownership and future development of
the oil, gas, and other minerals in the subsurface
estate of the lands constituting the Padre Island
National Seashore by the owners and their mineral
lessees; and
(B) recognized that approval of the State of Texas
was required to create Padre Island National Seashore.
(4) Approval was given for the creation of Padre Island
National Seashore by the State of Texas through Tex. Rev. Civ.
Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly
recognized that development of the oil, gas, and other minerals
in the subsurface of the lands constituting Padre Island
National Seashore would be conducted with full rights of ingress
and egress under the laws of the State of Texas.
(b) Sense of Congress.--It is the sense of Congress that with regard
to Federal law, any regulation of the development of oil, gas, or other
minerals in the subsurface of the lands constituting Padre Island
National Seashore should be made as if those lands retained the status
that the lands had on September 27, 1962.
SEC. 374. <<NOTE: Louisiana.>> LIVINGSTON PARISH MINERAL RIGHTS
TRANSFER.
Section 102 of Public Law 102-562 (106 Stat. 4234) is amended by
striking subsection (b) and inserting the following:
``(b) Reservation of Oil and Gas Rights and Conveyance of Remaining
Mineral Rights.--Subject to the limitations set forth in subsection (c),
the United States hereby excepts and reserves from the provisions of
subsection (a), all rights to oil and gas underlying such lands, along
with the right to explore
[[Page 119 STAT. 737]]
for, and produce the oil and gas under applicable law and such
regulations as the Secretary of the Interior may prescribe. Not later
than 180 days after the date of enactment of the Energy Policy Act of
2005, the Secretary of the Interior shall convey the remaining mineral
rights to the parties who as of the date of enactment of the Energy
Policy Act of 2005 would be recognized as holders of a right, title, or
interest to any portion of such minerals under the laws of the State of
Louisiana, but for the interest of the United States in such minerals.
``(c) Oil and Gas <<NOTE: Deadlines.>> Resource Assessment and
Report.--The United States Geological Survey shall conduct a resource
assessment and publish a report of the findings of such resource
assessment (`USGS Assessment and Report') within 1 year of the date of
enactment of the Energy Policy Act of 2005. The USGS Assessment and
Report shall provide an assessment of all oil and gas resources
underlying the certain lands in Livingston Parish, Louisiana, as
described in section 103 (the `Livingston Parish lands'). Upon a finding
by the Secretary of the Interior based upon the USGS Assessment and
Report that it is unlikely that economically recoverable oil and gas
resources are present, the Secretary shall convey all rights to oil and
gas underlying such lands to the recipients, or their successors, heirs,
or assigns, of the conveyances under subsection (b). Such further
conveyances shall be made within 180 days after a finding by the
Secretary that it is unlikely that economically recoverable oil and gas
resources are present.''.
Subtitle G--Miscellaneous
SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION
UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.
Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1465) is amended to read as follows:
``appeals to the secretary
``Sec. 319. (a) Notice.--Not <<NOTE: Federal
Register, publication.>> later than 30 days after the date of the filing
of an appeal to the Secretary of a consistency determination under
section 307, the Secretary shall publish an initial notice in the
Federal Register.
``(b) Closure of Record.--
``(1) In general.--Not later than the end of the 160-day
period beginning on the date of publication of an initial notice
under subsection (a), except as provided in paragraph (3), the
Secretary shall immediately close the decision record and
receive no more filings on the appeal.
``(2) Notice.--After <<NOTE: Federal
Register, publication.>> closing the administrative record, the
Secretary shall immediately publish a notice in the Federal
Register that the administrative record has been closed.
``(3) Exception.--
``(A) In general.--Subject to subparagraph (B),
during the 160-day period described in paragraph (1),
the Secretary may stay the closing of the decision
record--
``(i) for a specific period mutually agreed to
in writing by the appellant and the State agency;
or
``(ii) as the Secretary determines necessary
to receive, on an expedited basis--
[[Page 119 STAT. 738]]
``(I) any supplemental information
specifically requested by the Secretary
to complete a consistency review under
this Act; or
``(II) any clarifying information
submitted by a party to the proceeding
related to information in the
consolidated record compiled by the lead
Federal permitting agency.
``(B) Applicability.--The Secretary may only stay
the 160-day period described in paragraph (1) for a
period not to exceed 60 days.
``(c) Deadline for Decision.--
``(1) In general.--Not <<NOTE: Notices. Federal
Register, publication.>> later than 60 days after the date of
publication of a Federal Register notice stating when the
decision record for an appeal has been closed, the Secretary
shall issue a decision or publish a notice in the Federal
Register explaining why a decision cannot be issued at that
time.
``(2) Subsequent decision.--Not later than 15 days after the
date of publication of a Federal Register notice explaining why
a decision cannot be issued within the 60-day period, the
Secretary shall issue a decision.''.
SEC. 382. <<NOTE: 16 USC 1466.>> APPEALS RELATING TO OFFSHORE MINERAL
DEVELOPMENT.
For any Federal administrative agency proceeding that is an appeal
or review under section 319 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1465), as amended by this Act, related to any Federal
authorization for the permitting, approval, or other authorization of an
energy project, the lead Federal permitting agency for the project
shall, with the cooperation of Federal and State administrative
agencies, maintain a consolidated record of all decisions made or
actions taken by the lead agency or by another Federal or State
administrative agency or officer. Such record shall be the initial
record for appeals or reviews under that Act, provided that the record
may be supplemented as expressly provided pursuant to section 319 of
that Act.
SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL
SHELF LANDS ACT.
(a) Royalty Relief.--
(1) In general.--For purposes of providing compensation for
lessees and a State for which amounts are authorized by section
6004(c) of the Oil Pollution Act of 1990 (Public Law 101-380), a
lessee may withhold from payment any royalty due and owing to
the United States under any leases under the Outer Continental
Shelf Lands Act (43 U.S.C. 1301 et seq.) for offshore oil or gas
production from a covered lease tract if, on or before the date
that the payment is due and payable to the United States, the
lessee makes a payment to the State of 44 cents for every $1 of
royalty withheld.
(2) Treatment of amounts.--Any royalty withheld by a lessee
in accordance with this section (including any portion thereof
that is paid to the State under paragraph (1)) shall be treated
as paid for purposes of satisfaction of the royalty obligations
of the lessee to the United States.
(3) Certification of withheld amounts.--The Secretary of the
Treasury shall--
(A) determine the amount of royalty withheld by a
lessee under this section; and
[[Page 119 STAT. 739]]
(B) <<NOTE: Publication.>> promptly publish a
certification when the total amount of royalty withheld
by the lessee under this section is equal to--
(i) the dollar amount stated at page 47 of
Senate Report number 101-534, which is designated
therein as the total drainage claim for the West
Delta field; plus
(ii) interest as described at page 47 of that
Report.
(b) Period of Royalty Relief.--Subsection
(a) <<NOTE: Applicability. Effective date. Termination date.>> shall
apply to royalty amounts that are due and payable in the period
beginning on October 1, 2006, and ending on the date on which the
Secretary of the Treasury publishes a certification under subsection
(a)(3)(B).
(c) Definitions.--As used in this section:
(1) Covered lease tract.--The term ``covered lease tract''
means a leased tract (or portion of a leased tract)--
(A) lying seaward of the zone defined and governed
by section 8(g) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(g)); or
(B) lying within such zone but to which such section
does not apply.
(2) Lessee.--The term ``lessee''--
(A) means a person or entity that, on the date of
the enactment of the Oil Pollution Act of 1990, was a
lessee referred to in section 6004(c) of that Act (as in
effect on that date of the enactment), but did not hold
lease rights in Federal offshore lease OCS-G-5669; and
(B) includes successors and affiliates of a person
or entity described in subparagraph (A).
SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is amended to read as follows:
``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Coastal political subdivision.--The term `coastal
political subdivision' means a political subdivision of a
coastal State any part of which political subdivision is--
``(A) within the coastal zone (as defined in section
304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453)) of the coastal State as of the date of
enactment of the Energy Policy Act of 2005; and
``(B) not more than 200 nautical miles from the
geographic center of any leased tract.
``(2) Coastal population.--The term `coastal population'
means the population, as determined by the most recent official
data of the Census Bureau, of each political subdivision any
part of which lies within the designated coastal boundary of a
State (as defined in a State's coastal zone management program
under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et
seq.)).
``(3) Coastal state.--The term `coastal State' has the
meaning given the term in section 304 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1453).
``(4) Coastline.--The term `coastline' has the meaning given
the term `coast line' in section 2 of the Submerged Lands Act
(43 U.S.C. 1301).
[[Page 119 STAT. 740]]
``(5) Distance.--The term `distance' means the minimum great
circle distance, measured in statute miles.
``(6) Leased tract.--The term `leased tract' means a tract
that is subject to a lease under section 6 or 8 for the purpose
of drilling for, developing, and producing oil or natural gas
resources.
``(7) Leasing moratoria.--The term `leasing moratoria' means
the prohibitions on preleasing, leasing, and related activities
on any geographic area of the outer Continental Shelf as
contained in sections 107 through 109 of division E of the
Consolidated Appropriations Act, 2005 (Public Law 108-447; 118
Stat. 3063).
``(8) Political subdivision.--The term `political
subdivision' means the local political jurisdiction immediately
below the level of State government, including counties,
parishes, and boroughs.
``(9) Producing state.--
``(A) In general.--The term `producing State' means
a coastal State that has a coastal seaward boundary
within 200 nautical miles of the geographic center of a
leased tract within any area of the outer Continental
Shelf.
``(B) Exclusion.--The term `producing State' does
not include a producing State, a majority of the
coastline of which is subject to leasing moratoria,
unless production was occurring on January 1, 2005, from
a lease within 10 nautical miles of the coastline of
that State.
``(10) Qualified outer continental shelf revenues.--
``(A) In general.--The term `qualified Outer
Continental Shelf revenues' means all amounts received
by the United States from each leased tract or portion
of a leased tract--
``(i) lying--
``(I) seaward of the zone covered by
section 8(g); or
``(II) within that zone, but to
which section 8(g) does not apply; and
``(ii) the geographic center of which lies
within a distance of 200 nautical miles from any
part of the coastline of any coastal State.
``(B) Inclusions.--The term `qualified Outer
Continental Shelf revenues' includes bonus bids, rents,
royalties (including payments for royalty taken in kind
and sold), net profit share payments, and related late-
payment interest from natural gas and oil leases issued
under this Act.
``(C) Exclusion.--The term `qualified Outer
Continental Shelf revenues' does not include any
revenues from a leased tract or portion of a leased
tract that is located in a geographic area subject to a
leasing moratorium on January 1, 2005, unless the lease
was in production on January 1, 2005.
``(b) Payments to Producing States and Coastal Political
Subdivisions.--
``(1) In general.--The Secretary shall, without further
appropriation, disburse to producing States and coastal
political subdivisions in accordance with this section
$250,000,000 for each of fiscal years 2007 through 2010.
[[Page 119 STAT. 741]]
``(2) Disbursement.--In each fiscal year, the Secretary
shall disburse to each producing State for which the Secretary
has approved a plan under subsection (c), and to coastal
political subdivisions under paragraph (4), such funds as are
allocated to the producing State or coastal political
subdivision, respectively, under this section for the fiscal
year.
``(3) Allocation among producing states.--
``(A) In general.--Except as provided in
subparagraph (C) and subject to subparagraph (D), the
amounts available under paragraph (1) shall be allocated
to each producing State based on the ratio that--
``(i) the amount of qualified outer
Continental Shelf revenues generated off the
coastline of the producing State; bears to
``(ii) the amount of qualified outer
Continental Shelf revenues generated off the
coastline of all producing States.
``(B) Amount of outer continental shelf revenues.--
For purposes of subparagraph (A)--
``(i) the amount of qualified outer
Continental Shelf revenues for each of fiscal
years 2007 and 2008 shall be determined using
qualified outer Continental Shelf revenues
received for fiscal year 2006; and
``(ii) the amount of qualified outer
Continental Shelf revenues for each of fiscal
years 2009 and 2010 shall be determined using
qualified outer Continental Shelf revenues
received for fiscal year 2008.
``(C) Multiple producing states.--In a case in which
more than one producing State is located within 200
nautical miles of any portion of a leased tract, the
amount allocated to each producing State for the leased
tract shall be inversely proportional to the distance
between--
``(i) the nearest point on the coastline of
the producing State; and
``(ii) the geographic center of the leased
tract.
``(D) Minimum allocation.--The amount allocated to a
producing State under subparagraph (A) shall be at least
1 percent of the amounts available under paragraph (1).
``(4) Payments to coastal political subdivisions.--
``(A) In general.--The Secretary shall pay 35
percent of the allocable share of each producing State,
as determined under paragraph (3) to the coastal
political subdivisions in the producing State.
``(B) Formula.--Of the amount paid by the Secretary
to coastal political subdivisions under subparagraph
(A)--
``(i) 25 percent shall be allocated to each
coastal political subdivision in the proportion
that--
``(I) the coastal population of the
coastal political subdivision; bears to
``(II) the coastal population of all
coastal political subdivisions in the
producing State;
``(ii) 25 percent shall be allocated to each
coastal political subdivision in the proportion
that--
``(I) the number of miles of
coastline of the coastal political
subdivision; bears to
[[Page 119 STAT. 742]]
``(II) the number of miles of
coastline of all coastal political
subdivisions in the producing State; and
``(iii) 50 percent shall be allocated in
amounts that are inversely proportional to the
respective distances between the points in each
coastal political subdivision that are closest to
the geographic center of each leased tract, as
determined by the Secretary.
``(C) Exception for the state of louisiana.--For the
purposes of subparagraph (B)(ii), the coastline for
coastal political subdivisions in the State of Louisiana
without a coastline shall be considered to be \1/3\ the
average length of the coastline of all coastal political
subdivisions with a coastline in the State of Louisiana.
``(D) Exception for the state of alaska.--For the
purposes of carrying out subparagraph (B)(iii) in the
State of Alaska, the amounts allocated shall be divided
equally among the two coastal political subdivisions
that are closest to the geographic center of a leased
tract.
``(E) Exclusion of certain leased tracts.--For
purposes of subparagraph (B)(iii), a leased tract or
portion of a leased tract shall be excluded if the tract
or portion of a leased tract is located in a geographic
area subject to a leasing moratorium on January 1, 2005,
unless the lease was in production on that date.
``(5) No approved plan.--
``(A) In general.--Subject to subparagraph (B) and
except as provided in subparagraph (C), in a case in
which any amount allocated to a producing State or
coastal political subdivision under paragraph (4) or (5)
is not disbursed because the producing State does not
have in effect a plan that has been approved by the
Secretary under subsection (c), the Secretary shall
allocate the undisbursed amount equally among all other
producing States.
``(B) Retention of allocation.--The Secretary shall
hold in escrow an undisbursed amount described in
subparagraph (A) until such date as the final appeal
regarding the disapproval of a plan submitted under
subsection (c) is decided.
``(C) Waiver.--The Secretary may waive subparagraph
(A) with respect to an allocated share of a producing
State and hold the allocable share in escrow if the
Secretary determines that the producing State is making
a good faith effort to develop and submit, or update, a
plan in accordance with subsection (c).
``(c) Coastal Impact Assistance Plan.--
``(1) Submission of state plans.--
``(A) In general.--Not <<NOTE: Deadline.>> later
than July 1, 2008, the Governor of a producing State
shall submit to the Secretary a coastal impact
assistance plan.
``(B) Public participation.--In carrying out
subparagraph (A), the Governor shall solicit local input
and provide for public participation in the development
of the plan.
``(2) Approval.--
``(A) In general.--The Secretary shall approve a
plan of a producing State submitted under paragraph (1)
before disbursing any amount to the producing State, or
to a
[[Page 119 STAT. 743]]
coastal political subdivision located in the producing
State, under this section.
``(B) Components.--The Secretary shall approve a
plan submitted under paragraph (1) if--
``(i) the Secretary determines that the plan
is consistent with the uses described in
subsection (d); and
``(ii) the plan contains--
``(I) the name of the State agency
that will have the authority to
represent and act on behalf of the
producing State in dealing with the
Secretary for purposes of this section;
``(II) a program for the
implementation of the plan that
describes how the amounts provided under
this section to the producing State will
be used;
``(III) for each coastal political