[SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESS House Bills]
[From the U.S. Government Printing Office via GPO Access]
[Enrolled Bill]
[DOCID: f:h6enr.txt]

        H.R.6

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
  To ensure jobs for our future with secure, affordable, and reliable 
                                 energy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in 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.
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.
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.
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.

            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.
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.
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.
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.
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.

              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.

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. 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--
                (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. 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) shall submit the plan to Congress, not later than 180 
    days after the date of enactment of this section.
    ``(b) Plan Requirements.--The plan shall include--
        ``(1) a description of the life cycle cost analysis used to 
    determine the cost-effectiveness of proposed energy efficiency 
    projects;
        ``(2) a schedule of energy surveys to ensure complete surveys 
    of all congressional buildings every 5 years to determine the cost 
    and payback period of energy and water conservation measures;
        ``(3) a strategy for installation of life cycle cost-effective 
    energy and water conservation measures;
        ``(4) the results of a study of the costs and benefits of 
    installation of submetering in congressional buildings; and
        ``(5) information packages and `how-to' guides for each Member 
    and employing authority of Congress that detail simple, cost-
    effective methods to save energy and taxpayer dollars in the 
    workplace.
    ``(c) 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 energy reduction goals and 
    baseline established in paragraph (1) of section 543(a) of the 
    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) 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) 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 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 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 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 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. 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
            ``(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 the case of electric motors of 1 
to 500 horsepower, agencies shall select only premium efficient motors 
that meet a standard designated by the Secretary. The Secretary shall 
designate such a standard 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 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 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 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. 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.

SEC. 107. 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 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.
        ``(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 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
            ``(iii) identify any potential environmental or economic 
        effects that may result from greater substitution of recovered 
        mineral component in those cement or concrete projects.
        ``(3) Report.--Not later than 30 months after the date of 
    enactment of this section, the Administrator shall submit to 
    Congress a report on the study.
    ``(d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other problems 
described in subsection (c)(2)(C)(iii) that warrant further review or 
delay, the Administrator and each agency head shall, not later than 1 
year after the date on which the report under subsection (c)(3) is 
submitted, take additional actions under this Act to establish 
procurement requirements and incentives that provide for the use of 
cement and concrete with increased substitution of recovered mineral 
component in the construction and maintenance of cement or concrete 
projects--
        ``(1) to realize more fully the energy savings and 
    environmental benefits associated with increased substitution; and
        ``(2) to eliminate barriers identified under subsection 
    (c)(2)(B).
    ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
    (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) Not later than 1 year after the date of enactment of this 
paragraph, the Secretary shall establish, by rule, revised Federal 
building energy efficiency performance standards that require that--
        ``(i) if life-cycle cost-effective for new Federal buildings--
            ``(I) the buildings be designed to achieve energy 
        consumption levels that are at least 30 percent below the 
        levels established in the version of the ASHRAE Standard or the 
        International Energy Conservation Code, as appropriate, that is 
        in effect as of the date of enactment of this paragraph; and
            ``(II) sustainable design principles are applied to the 
        siting, design, and construction of all new and replacement 
        buildings; and
        ``(ii) if water is used to achieve energy efficiency, water 
    conservation technologies shall be applied to the extent that the 
    technologies are life-cycle cost-effective.
    ``(B) Not later than 1 year after the date of approval of each 
subsequent revision of the ASHRAE Standard or the International Energy 
Conservation Code, as appropriate, the Secretary shall determine, based 
on the cost-effectiveness of the requirements under the amendment, 
whether the revised standards established under this paragraph should 
be updated to reflect the amendment.
    ``(C) In the budget request of the Federal agency for each fiscal 
year and each report submitted by the Federal agency under section 
548(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8258(a)), the head of each Federal agency shall include--
        ``(i) a list of all new Federal buildings owned, operated, or 
    controlled by the Federal agency; and
        ``(ii) a statement specifying whether the Federal buildings 
    meet or exceed the revised standards established under this 
    paragraph.''.

SEC. 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) 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 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. 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.

            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. 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 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 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. 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. 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. 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) 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. 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.
    (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. 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--
        (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) 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 established within the 
Department of Energy and the Environmental Protection Agency a 
voluntary program to identify and promote energy-efficient products and 
buildings in order to reduce energy consumption, improve energy 
security, and reduce pollution through voluntary labeling of, or other 
forms of communication about, products and buildings that meet the 
highest energy conservation standards.
    ``(b) Division of Responsibilities.--Responsibilities under the 
program shall be divided between the Department of Energy and the 
Environmental Protection Agency in accordance with the terms of 
applicable agreements between those agencies.
    ``(c) Duties.--The Administrator and the Secretary shall--
        ``(1) promote Energy Star compliant technologies as the 
    preferred technologies in the marketplace for--
            ``(A) achieving energy efficiency; and
            ``(B) reducing pollution;
        ``(2) work to enhance public awareness of the Energy Star 
    label, including by providing special outreach to small businesses;
        ``(3) preserve the integrity of the Energy Star label;
        ``(4) regularly update Energy Star product criteria for product 
    categories;
        ``(5) solicit comments from interested parties prior to 
    establishing or revising an Energy Star product category, 
    specification, or criterion (or prior to effective dates for any 
    such product category, specification, or criterion);
        ``(6) on adoption of a new or revised product category, 
    specification, or criterion, provide reasonable notice to 
    interested parties of any changes (including effective dates) in 
    product categories, specifications, or criteria, along with--
            ``(A) an explanation of the changes; and
            ``(B) as appropriate, responses to comments submitted by 
        interested parties; and
        ``(7) provide appropriate lead time (which shall be 270 days, 
    unless the Agency or Department specifies otherwise) prior to the 
    applicable effective date for a new or a significant revision to a 
    product category, specification, or criterion, taking into account 
    the timing requirements of the manufacturing, product marketing, 
    and distribution process for the specific product addressed.
    ``(d) Deadlines.--The Secretary shall establish new qualifying 
levels--
        ``(1) not later than January 1, 2006, for clothes washers and 
    dishwashers, effective beginning January 1, 2007; and
        ``(2) not later than January 1, 2008, for clothes washers, 
    effective beginning January 1, 2010.''.
    (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) 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 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) There are authorized to be appropriated such sums as are 
necessary to carry out this subsection, to remain available until 
expended.''.

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

    (a) In General.--Not 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.
    (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. 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.
    (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
                    ``(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;
                ``(II) the transformer is unlikely to be used in 
            general purpose applications; and
                ``(III) the application of standards to the transformer 
            would not result in significant energy savings.
        ``(36) The term `external power supply' means an external power 
    supply circuit that is used to convert household electric current 
    into DC current or lower-voltage AC current to operate a consumer 
    product.
        ``(37) The term `illuminated exit sign' means a sign that--
            ``(A) is designed to be permanently fixed in place to 
        identify an exit; and
            ``(B) consists of an electrically powered integral light 
        source that--
                ``(i) illuminates the legend `EXIT' and any directional 
            indicators; and
                ``(ii) provides contrast between the legend, any 
            directional indicators, and the background.
        ``(38) The term `low-voltage dry-type distribution transformer' 
    means a distribution transformer that--
            ``(A) has an input voltage of 600 volts or less;
            ``(B) is air-cooled; and
            ``(C) does not use oil as a coolant.
        ``(39) The term `pedestrian module' means a light signal used 
    to convey movement information to pedestrians.
        ``(40) The term `refrigerated bottled or canned beverage 
    vending machine' means a commercial refrigerator that cools bottled 
    or canned beverages and dispenses the bottled or canned beverages 
    on payment.
        ``(41) The term `standby mode' means the lowest power 
    consumption mode, as established on an individual product basis by 
    the Secretary, that--
            ``(A) cannot be switched off or influenced by the user; and
            ``(B) may persist for an indefinite time when an appliance 
        is--
                ``(i) connected to the main electricity supply; and
                ``(ii) used in accordance with the instructions of the 
            manufacturer.
        ``(42) The term `torchiere' means a portable electric lamp with 
    a reflector bowl that directs light upward to give indirect 
    illumination.
        ``(43) The term `traffic signal module' means a standard 8-inch 
    (200mm) or 12-inch (300mm) traffic signal indication that--
            ``(A) consists of a light source, a lens, and all other 
        parts necessary for operation; and
            ``(B) communicates movement messages to drivers through 
        red, amber, and green colors.
        ``(44) The term `transformer' means a device consisting of 2 or 
    more coils of insulated wire that transfers alternating current by 
    electromagnetic induction from 1 coil to another to change the 
    original voltage or current value.
        ``(45)(A) The term `unit heater' means a self-contained fan-
    type heater designed to be installed within the heated space.
        ``(B) The term `unit heater' does not include a warm air 
    furnace.
        ``(46)(A) The term `high intensity discharge lamp' means an 
    electric-discharge lamp in which--
            ``(i) the light-producing arc is stabilized by bulb wall 
        temperature; and
            ``(ii) the arc tube has a bulb wall loading in excess of 3 
        Watts/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.
    ``(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 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:
    ``(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             ...................
``Application  Ballast             nominal           Ballast
 for           input               lamp              efficacy
 operation of  voltage             watts             factor
One F34T12     120/277             34                2.61
 lamp
Two F34T12     120/277             68                1.35
 lamps
Two F96T12/ES  120/277             120               0.77
 lamps
Two F96T12HO/  120/277             190               0.42.
 ES lamps
 

    ``(B) 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 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 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) 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) 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) 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 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 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) 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) 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.
        ``(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) 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) 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--
            ``(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) 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) 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
        ``(D) establishing separate exempted product classes for highly 
    decorative fans for which air movement performance is a secondary 
    design feature.
    ``(7) 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:
            ``(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.
        ``(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'';
                (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--
            ``(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.
        ``(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) 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) 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) 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. 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:
---------------------------------------------------------------------------
  

------------------------------------------------------------------------
                                           Harvest   Maximum    Maximum
                                            Rate     Energy    Condenser
        Equipment Type           Type of  (lbs ice/ Use (kWh/  Water Use
                                 Cooling     24      100 lbs   (gal/100
                                           hours)     Ice)     lbs Ice)
------------------------------------------------------------------------
Ice Making Head                 Water     <500      7.80-0.0  200-0.022H
                                                     055H
                                         -------------------------------
                                          500 and   5.58-0.0  200-0.022H
                                           <1436     011H
                                         -------------------------------
                                          1436      4.0       200-0.022H
------------------------------------------------------------------------
Ice Making Head                 Air       <450      10.26-0.  Not
                                                     0086H     Applicabl
                                                               e
                                         -------------------------------
                                          450       6.89-0.0  Not
                                                     011H      Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <1000     8.85-0.0  Not
(but not remote                                      038H      Applicabl
compressor)                                                    e
                                         -------------------------------
                                          1000      5.10      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <934      8.85-0.0  Not
and Remote                                           038H      Applicabl
Compressor                                                     e
                                         -------------------------------
                                          934       5.3       Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Self Contained                  Water     <200      11.40-0.  191-0.0315
                                                     019H      H
                                         -------------------------------
                                          200       7.60      191-0.0315
                                                               H
------------------------------------------------------------------------
Self Contained                  Air       <175      18.0-0.0  Not
                                                     469H      Applicabl
                                                               e
                                         -------------------------------
                                          175       9.80      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
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) 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
        ``(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.
    ``(3)(A) 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) 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) 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) 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) 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)--
                (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) 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) 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) 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) 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) If a new test procedure is adopted under clause (i)--
        ``(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) 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, 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.
    ``(2) 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) 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) 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) As part of certification, information on equipment energy use 
and interior volume shall be made available to the Secretary.
    ``(f)(1)(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)(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 Act (42 U.S.C. 
6294(a)(2)) is amended by adding at the end the following:
    ``(F)(i) Not later than 90 days after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to consider--
        ``(I) the effectiveness of the consumer products labeling 
    program in assisting consumers in making purchasing decisions and 
    improving energy efficiency; and
        ``(II) changes to the labeling rules (including categorical 
    labeling) that would improve the effectiveness of consumer product 
    labels.
    ``(ii) Not later than 2 years after the date of enactment of this 
subparagraph, the Commission shall complete the rulemaking initiated 
under clause (i).
    ``(G)(i) 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) 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 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 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. 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.
    (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. 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:
                ``(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. 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
        (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. 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 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. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not 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.
    (c) Authorization of Appropriations.--For 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,''.
    (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. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The 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;
        (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) develop innovative procurement strategies for the 
        acquisition of such systems; and
            ``(C) transmit to Congress an annual report on the results 
        of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
        ``(1) In general.--Not 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) 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 year after the 
filing of the request, together with any information required to be 
filed with such request under subparagraph (A)(ii).
    ``(C) 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 Program.--
        (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 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 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. 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
                (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. 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--
        ``(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. 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 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.
    (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 Energy

SEC. 221. 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 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 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.
        ``(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) 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 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
            ``(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 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 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 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) the Secretary of the Interior shall, within 180 days 
        after the receipt of the request for modification, modify the 
        lease to comply with--
                (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. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL 
              LANDS.

    (a) In General.--Not 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) 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. 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.

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.
    ``(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 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:
        ``(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 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. 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.
    ``(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 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.''.

SEC. 234. 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) 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''.
        (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:

``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 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 issues surrounding 
the expanded discovery and use of geothermal energy, including from 
geothermal resources on public lands.
    (b) Members.--The 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 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 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 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 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. 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) 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 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. 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. 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) 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 
Commission's Dispute Resolution Service. 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. The 
Secretary shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.''.

SEC. 242. 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 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 
    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. 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. FLINT CREEK HYDROELECTRIC PROJECT.

    (a) Extension of Time.--Notwithstanding the time period specified 
in section 5 of the Federal Power Act (16 U.S.C. 798) 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:
    ``(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
            ``(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) 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
                ``(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. 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 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--
        (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 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 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 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 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. 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''.
    (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) 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) 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
        ``(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) 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) 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. This 
subsection shall apply to any application filed after the date of 
enactment of the Energy Policy Act of 2005. A 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 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. 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 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, 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.--
        (1) Natural gas act.--The Natural Gas Act (15 U.S.C. 717 et 
    seq.) is amended--
            (A) 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) 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. 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) 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 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) 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.''.

SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

    (a) In General.--Not 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.''.

                         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. TRANSFER OF ADMINISTRATIVE JURISDICTION AND ENVIRONMENTAL 
              REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, KERN 
              COUNTY, CALIFORNIA.

    (a) Administration 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 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. 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 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 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 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).

SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED 
              2, TO CITY OF TAFT, CALIFORNIA.

    (a) Conveyance.--Effective 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 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. 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. DEFINITION OF SECRETARY.

    In this subtitle, the term ``Secretary'' means the Secretary of the 
Interior.

SEC. 342. 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
        (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--
        (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.
    (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. 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 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.
    (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 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. 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 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. 
    Regulations issued under this subsection shall be retroactive to 
    the date that the notice of proposed rulemaking is published in the 
    Federal Register.
        (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 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. 
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. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--Subject to 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 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 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'';
        (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) 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 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.--
        ``(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 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
                    ``(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. 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
        (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 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. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

    (a) In General.--The 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--
        (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 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 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 later than 45 days after the date of 
enactment of this Act, the Secretary shall issue final regulations to 
implement this section.

SEC. 351. 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''.
    (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 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.
        (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 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).
        (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. 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 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.
        (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 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. 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 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.
        (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.
        (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 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 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 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 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.
    (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.
    (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. 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 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 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. 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. 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;
            (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. 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 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 later than 180 days after the development 
    of the best management practices under paragraph (1), the Secretary 
    shall publish, for public comment, 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. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

    (a) In General.--Not 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
            (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 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. 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'').
    (b) Memorandum of Understanding.--
        (1) In general.--Not 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 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) 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.
    (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.

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 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) 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. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR RIGHTS-OF-WAY 
              ACROSS PUBLIC LANDS AND NATIONAL FORESTS.

    (a) Update of Fee Schedule.--Not 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 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. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

    (a) Western States.--Not 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 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 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
        (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. 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 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 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 
    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 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);
            (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.--
        (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).
    (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.

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. REINSTATEMENT OF LEASES.

    (a) Leases 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) 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) 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. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.

    (a) Memorandum of Understanding.--
        (1) In general.--Not 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.
    (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. 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 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 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 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 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--

                    ``(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 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. 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
            (B) 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) 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).
        ``(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.
        ``(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
                    ``(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 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 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 subdivision that 
                receives an amount under this section--

                        ``(aa) the name of a contact person; and
                        ``(bb) a description of how the coastal 
                    political subdivision will use amounts provided 
                    under this section;

                    ``(IV) a certification by the Governor that ample 
                opportunity has been provided for public participation 
                in the development and revision of the plan; and
                    ``(V) a description of measures that will be taken 
                to determine the availability of assistance from other 
                relevant Federal resources and programs.

        ``(3) Amendment.--Any amendment to a plan submitted under 
    paragraph (1) shall be--
            ``(A) developed in accordance with this subsection; and
            ``(B) submitted to the Secretary for approval or 
        disapproval under paragraph (4).
        ``(4) Procedure.--Not later than 90 days after the date on 
    which a plan or amendment to a plan is submitted under paragraph 
    (1) or (3), the Secretary shall approve or disapprove the plan or 
    amendment.
    ``(d) Authorized Uses.--
        ``(1) In general.--A producing State or coastal political 
    subdivision shall use all amounts received under this section, 
    including any amount deposited in a trust fund that is administered 
    by the State or coastal political subdivision and dedicated to uses 
    consistent with this section, in accordance with all applicable 
    Federal and State laws, only for one or more of the following 
    purposes:
            ``(A) Projects and activities for the conservation, 
        protection, or restoration of coastal areas, including wetland.
            ``(B) Mitigation of damage to fish, wildlife, or natural 
        resources.
            ``(C) Planning assistance and the administrative costs of 
        complying with this section.
            ``(D) Implementation of a federally-approved marine, 
        coastal, or comprehensive conservation management plan.
            ``(E) Mitigation of the impact of outer Continental Shelf 
        activities through funding of onshore infrastructure projects 
        and public service needs.
        ``(2) Compliance with authorized uses.--If the Secretary 
    determines that any expenditure made by a producing State or 
    coastal political subdivision is not consistent with this 
    subsection, the Secretary shall not disburse any additional amount 
    under this section to the producing State or the coastal political 
    subdivision until such time as all amounts obligated for 
    unauthorized uses have been repaid or reobligated for authorized 
    uses.
        ``(3) Limitation.--Not more than 23 percent of amounts received 
    by a producing State or coastal political subdivision for any 1 
    fiscal year shall be used for the purposes described in 
    subparagraphs (C) and (E) of paragraph (1).''.

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences under which the National Academy of 
Sciences shall conduct a study of the short-term and long-term 
availability of skilled workers to meet the energy and mineral security 
requirements of the United States.
    (b) Inclusions.--The study shall include an analysis of--
        (1) the need for and availability of workers for the oil, gas, 
    and mineral industries;
        (2) the availability of skilled labor at both entry level and 
    more senior levels; and
        (3) recommendations for future actions needed to meet future 
    labor requirements.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the study.

SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.

    No Federal or State permit or lease shall be issued for new oil and 
gas slant, directional, or offshore drilling in or under one or more of 
the Great Lakes.

SEC. 387. FEDERAL COALBED METHANE REGULATION.

    Any State currently on the list of Affected States established 
under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13368(b)) shall be removed from the list if, not later than 3 years 
after the date of enactment of this Act, the State takes, or prior to 
the date of enactment has taken, any of the actions required for 
removal from the list under such section 1339(b).

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-way for Energy and Related 
Purposes.--
        ``(1) In general.--The Secretary, in consultation with the 
    Secretary of the Department in which the Coast Guard is operating 
    and other relevant departments and agencies of the Federal 
    Government, may grant a lease, easement, or right-of-way on the 
    outer Continental Shelf for activities not otherwise authorized in 
    this Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.), 
    the Ocean Thermal Energy Conversion Act of 1980 (42 U.S.C. 9101 et 
    seq.), or other applicable law, if those activities--
            ``(A) support exploration, development, production, or 
        storage of oil or natural gas, except that a lease, easement, 
        or right-of-way shall not be granted in an area in which oil 
        and gas preleasing, leasing, and related activities are 
        prohibited by a moratorium;
            ``(B) support transportation of oil or natural gas, 
        excluding shipping activities;
            ``(C) produce or support production, transportation, or 
        transmission of energy from sources other than oil and gas; or
            ``(D) use, for energy-related purposes or for other 
        authorized marine-related purposes, facilities currently or 
        previously used for activities authorized under this Act, 
        except that any oil and gas energy-related uses shall not be 
        authorized in areas in which oil and gas preleasing, leasing, 
        and related activities are prohibited by a moratorium.
        ``(2) Payments and revenues.--(A) The Secretary shall establish 
    royalties, fees, rentals, bonuses, or other payments to ensure a 
    fair return to the United States for any lease, easement, or right-
    of-way granted under this subsection.
        ``(B) The Secretary shall provide for the payment of 27 percent 
    of the revenues received by the Federal Government as a result of 
    payments under this section from projects that are located wholly 
    or partially within the area extending three nautical miles seaward 
    of State submerged lands. Payments shall be made based on a formula 
    established by the Secretary by rulemaking no later than 180 days 
    after the date of enactment of this section that provides for 
    equitable distribution, based on proximity to the project, among 
    coastal states that have a coastline that is located within 15 
    miles of the geographic center of the project.
        ``(3) Competitive or noncompetitive basis.--Except with respect 
    to projects that meet the criteria established under section 388(d) 
    of the Energy Policy Act of 2005, the Secretary shall issue a 
    lease, easement, or right-of-way under paragraph (1) on a 
    competitive basis unless the Secretary determines after public 
    notice of a proposed lease, easement, or right-of-way that there is 
    no competitive interest.
        ``(4) Requirements.--The Secretary shall ensure that any 
    activity under this subsection is carried out in a manner that 
    provides for--
            ``(A) safety;
            ``(B) protection of the environment;
            ``(C) prevention of waste;
            ``(D) conservation of the natural resources of the outer 
        Continental Shelf;
            ``(E) coordination with relevant Federal agencies;
            ``(F) protection of national security interests of the 
        United States;
            ``(G) protection of correlative rights in the outer 
        Continental Shelf;
            ``(H) a fair return to the United States for any lease, 
        easement, or right-of-way under this subsection;
            ``(I) prevention of interference with reasonable uses (as 
        determined by the Secretary) of the exclusive economic zone, 
        the high seas, and the territorial seas;
            ``(J) consideration of--
                ``(i) the location of, and any schedule relating to, a 
            lease, easement, or right-of-way for an area of the outer 
            Continental Shelf; and
                ``(ii) any other use of the sea or seabed, including 
            use for a fishery, a sealane, a potential site of a 
            deepwater port, or navigation;
            ``(K) public notice and comment on any proposal submitted 
        for a lease, easement, or right-of-way under this subsection; 
        and
            ``(L) oversight, inspection, research, monitoring, and 
        enforcement relating to a lease, easement, or right-of-way 
        under this subsection.
        ``(5) Lease duration, suspension, and cancellation.--The 
    Secretary shall provide for the duration, issuance, transfer, 
    renewal, suspension, and cancellation of a lease, easement, or 
    right-of-way under this subsection.
        ``(6) Security.--The Secretary shall require the holder of a 
    lease, easement, or right-of-way granted under this subsection to--
            ``(A) furnish a surety bond or other form of security, as 
        prescribed by the Secretary;
            ``(B) comply with such other requirements as the Secretary 
        considers necessary to protect the interests of the public and 
        the United States; and
            ``(C) provide for the restoration of the lease, easement, 
        or right-of-way.
        ``(7) Coordination and consultation with affected state and 
    local governments.--The Secretary shall provide for coordination 
    and consultation with the Governor of any State or the executive of 
    any local government that may be affected by a lease, easement, or 
    right-of-way under this subsection.
        ``(8) Regulations.--Not later than 270 days after the date of 
    enactment of the Energy Policy Act of 2005, the Secretary, in 
    consultation with the Secretary of Defense, the Secretary of the 
    Department in which the Coast Guard is operating, the Secretary of 
    Commerce, heads of other relevant departments and agencies of the 
    Federal Government, and the Governor of any affected State, shall 
    issue any necessary regulations to carry out this subsection.
        ``(9) Effect of subsection.--Nothing in this subsection 
    displaces, supersedes, limits, or modifies the jurisdiction, 
    responsibility, or authority of any Federal or State agency under 
    any other Federal law.
        ``(10) Applicability.--This subsection does not apply to any 
    area on the outer Continental Shelf within the exterior boundaries 
    of any unit of the National Park System, National Wildlife Refuge 
    System, or National Marine Sanctuary System, or any National 
    Monument.''.
    (b) Coordinated OCS Mapping Initiative.--
        (1) In general.--The Secretary of the Interior, in cooperation 
    with the Secretary of Commerce, the Commandant of the Coast Guard, 
    and the Secretary of Defense, shall establish an interagency 
    comprehensive digital mapping initiative for the outer Continental 
    Shelf to assist in decisionmaking relating to the siting of 
    activities under subsection (p) of section 8 of the Outer 
    Continental Shelf Lands Act (43 U.S.C. 1337) (as added by 
    subsection (a)).
        (2) Use of data.--The mapping initiative shall use, and develop 
    procedures for accessing, data collected before the date on which 
    the mapping initiative is established, to the maximum extent 
    practicable.
        (3) Inclusions.--Mapping carried out under the mapping 
    initiative shall include an indication of the locations on the 
    outer Continental Shelf of--
            (A) Federally-permitted activities;
            (B) obstructions to navigation;
            (C) submerged cultural resources;
            (D) undersea cables;
            (E) offshore aquaculture projects; and
            (F) any area designated for the purpose of safety, national 
        security, environmental protection, or conservation and 
        management of living marine resources.
    (c) Conforming Amendment.--Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by striking the section heading 
and inserting the following: ``Leases, Easements, and Rights-of-way on 
the Outer Continental 
Shelf.--''.
    (d) Savings Provision.--Nothing in the amendment made by subsection 
(a) requires the resubmittal of any document that was previously 
submitted or the reauthorization of any action that was previously 
authorized with respect to a project for which, before the date of 
enactment of this Act--
        (1) an offshore test facility has been constructed; or
        (2) a request for a proposal has been issued by a public 
    authority.
    (e) State Claims to Jurisdiction Over Submerged Lands.--Nothing in 
this section shall be construed to alter, limit, or modify any claim of 
any State to any jurisdiction over, or any right, title, or interest 
in, any submerged lands.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

    Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et seq.) 
is amended--
        (1) in section 5001(i), by striking ``September 30, 2012'' and 
    inserting ``1 year after the date on which the Secretary, in 
    consultation with the Secretary of the Interior, determines that 
    oil and gas exploration, development, and production in the State 
    of Alaska have ceased''; and
        (2) in section 5006(c), by striking ``October 1, 2012'' and 
    inserting ``1 year after the date on which the Secretary, in 
    consultation with the Secretary of the Interior, determines that 
    oil and gas exploration, development, and production in the State 
    of Alaska have ceased,''.

SEC. 390. NEPA REVIEW.

    (a) NEPA Review.--Action by the Secretary of the Interior in 
managing the public lands, or the Secretary of Agriculture in managing 
National Forest System Lands, with respect to any of the activities 
described in subsection (b) shall be subject to a rebuttable 
presumption that the use of a categorical exclusion under the National 
Environmental Policy Act of 1969 (NEPA) would apply if the activity is 
conducted pursuant to the Mineral Leasing Act for the purpose of 
exploration or development of oil or gas.
    (b) Activities Described.--The activities referred to in subsection 
(a) are the following:
        (1) Individual surface disturbances of less than 5 acres so 
    long as the total surface disturbance on the lease is not greater 
    than 150 acres and site-specific analysis in a document prepared 
    pursuant to NEPA has been previously completed.
        (2) Drilling an oil or gas well at a location or well pad site 
    at which drilling has occurred previously within 5 years prior to 
    the date of spudding the well.
        (3) Drilling an oil or gas well within a developed field for 
    which an approved land use plan or any environmental document 
    prepared pursuant to NEPA analyzed such drilling as a reasonably 
    foreseeable activity, so long as such plan or document was approved 
    within 5 years prior to the date of spudding the well.
        (4) Placement of a pipeline in an approved right-of-way 
    corridor, so long as the corridor was approved within 5 years prior 
    to the date of placement of the pipeline.
        (5) Maintenance of a minor activity, other than any 
    construction or major renovation or a building or facility.

                  Subtitle H--Refinery Revitalization

SEC. 391. FINDINGS AND DEFINITIONS.

    (a) Findings.--Congress finds that--
        (1) it serves the national interest to increase petroleum 
    refining capacity for gasoline, heating oil, diesel fuel, jet fuel, 
    kerosene, and petrochemical feedstocks wherever located within the 
    United States, to bring more supply to the markets for the use of 
    the American people;
        (2) United States demand for refined petroleum products 
    currently exceeds the country's petroleum refining capacity to 
    produce such products;
        (3) this excess demand has been met with increased imports;
        (4) due to lack of capacity, refined petroleum product imports 
    are expected to grow from 7.9 percent to 10.7 percent of total 
    refined product by 2025;
        (5) refiners are still subject to significant environmental and 
    other regulations and face several new requirements under the Clean 
    Air Act (42 U.S.C. 7401 et seq.) over the next decade; and
        (6) better coordination of Federal and State regulatory reviews 
    may help facilitate siting and construction of new refineries to 
    meet the demand in the United States for refined products.
    (b) Definitions.--In this subtitle:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) State.--The term ``State'' means--
            (A) a State;
            (B) the Commonwealth of Puerto Rico; and
            (C) any other territory or possession of the United States.

SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.

    (a) In General.--At the request of the Governor of a State, the 
Administrator may enter into a refinery permitting cooperative 
agreement with the State, under which each party to the agreement 
identifies steps, including timelines, that it will take to streamline 
the consideration of Federal and State environmental permits for a new 
refinery.
    (b) Authority Under Agreement.--The Administrator shall be 
authorized to--
        (1) accept from a refiner a consolidated application for all 
    permits required from the Environmental Protection Agency, to the 
    extent consistent with other applicable law;
        (2) enter into memoranda of agreement with other Federal 
    agencies to coordinate consideration of refinery applications and 
    permits among Federal agencies; and
        (3) enter into memoranda of agreement with a State, under which 
    Federal and State review of refinery permit applications will be 
    coordinated and concurrently considered, to the extent practicable.
    (c) State Assistance.--The Administrator is authorized to provide 
financial assistance to State governments to facilitate the hiring of 
additional personnel with expertise in fields relevant to consideration 
of refinery permits.
    (d) Other Assistance.--The Administrator is authorized to provide 
technical, legal, or other assistance to State governments to 
facilitate their review of applications to build new refineries.

                             TITLE IV--COAL
                Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There are authorized to be 
appropriated to the Secretary to carry out the activities authorized by 
this subtitle $200,000,000 for each of fiscal years 2006 through 2014, 
to remain available until expended.
    (b) Report.--The Secretary shall submit to Congress the report 
required by this subsection not later than March 31, 2007. The report 
shall include, with respect to subsection (a), a plan containing--
        (1) a detailed assessment of whether the aggregate funding 
    levels provided under subsection (a) are the appropriate funding 
    levels for that program;
        (2) a detailed description of how proposals will be solicited 
    and evaluated, including a list of all activities expected to be 
    undertaken;
        (3) a detailed list of technical milestones for each coal and 
    related technology that will be pursued; and
        (4) a detailed description of how the program will avoid 
    problems enumerated in Government Accountability Office reports on 
    the Clean Coal Technology Program, including problems that have 
    resulted in unspent funds and projects that failed either 
    financially or scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under this 
subtitle, a project shall advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in commercial service or have been demonstrated 
on a scale that the Secretary determines is sufficient to demonstrate 
that commercial service is viable as of the date of enactment of this 
Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
        (1) Gasification projects.--
            (A) In general.--In allocating the funds made available 
        under section 401(a), the Secretary shall ensure that at least 
        70 percent of the funds are used only to fund projects on coal-
        based gasification technologies, including--
                (i) gasification combined cycle;
                (ii) gasification fuel cells and turbine combined 
            cycle;
                (iii) gasification coproduction;
                (iv) hybrid gasification and combustion; and
                (v) other advanced coal based technologies capable of 
            producing a concentrated stream of carbon dioxide.
            (B) Technical milestones.--
                (i) Periodic determination.--

                    (I) In general.--The Secretary shall periodically 
                set technical milestones specifying the emission and 
                thermal efficiency levels that coal gasification 
                projects under this subtitle shall be designed, and 
                reasonably expected, to achieve.
                    (II) Prescriptive milestones.--The technical 
                milestones shall become more prescriptive during the 
                period of the clean coal power initiative.

                (ii) 2020 goals.--The Secretary shall establish the 
            periodic milestones so as to achieve by the year 2020 coal 
            gasification projects able--

                    (I) to remove at least 99 percent of sulfur 
                dioxide;
                    (II) to emit not more than .05 lbs of 
                NO<INF>x</INF> per million Btu;
                    (III) to achieve at least 95 percent reductions in 
                mercury emissions; and
                    (IV) to achieve a thermal efficiency of at least--

                        (aa) 50 percent for coal of more than 9,000 
                    Btu;
                        (bb) 48 percent for coal of 7,000 to 9,000 Btu; 
                    and
                        (cc) 46 percent for coal of less than 7,000 
                    Btu.
        (2) Other projects.--
            (A) Allocation of funds.--The Secretary shall ensure that 
        up to 30 percent of the funds made available under section 
        401(a) are used to fund projects other than those described in 
        paragraph (1).
            (B) Technical milestones.--
                (i) Periodic determination.--

                    (I) In general.--The Secretary shall periodically 
                establish technical milestones specifying the emission 
                and thermal efficiency levels that projects funded 
                under this paragraph shall be designed, and reasonably 
                expected, to achieve.
                    (II) Prescriptive milestones.--The technical 
                milestones shall become more prescriptive during the 
                period of the clean coal power initiative.

                (ii) 2020 goals.--The Secretary shall set the periodic 
            milestones so as to achieve by the year 2020 projects 
            able--

                    (I) to remove at least 97 percent of sulfur 
                dioxide;
                    (II) to emit no more than .08 lbs of NO<INF>x</INF> 
                per million Btu;
                    (III) to achieve at least 90 percent reductions in 
                mercury emissions; and
                    (IV) to achieve a thermal efficiency of at least--

                        (aa) 43 percent for coal of more than 9,000 
                    Btu;
                        (bb) 41 percent for coal of 7,000 to 9,000 Btu; 
                    and
                        (cc) 39 percent for coal of less than 7,000 
                    Btu.
        (3) Consultation.--Before setting the technical milestones 
    under paragraphs (1)(B) and (2)(B), the Secretary shall consult 
    with--
            (A) the Administrator of the Environmental Protection 
        Agency; and
            (B) interested entities, including--
                (i) coal producers;
                (ii) industries using coal;
                (iii) organizations that promote coal or advanced coal 
            technologies;
                (iv) environmental organizations;
                (v) organizations representing workers; and
                (vi) organizations representing consumers.
        (4) Existing units.--In the case of projects at units in 
    existence on the date of enactment of this Act, in lieu of the 
    thermal efficiency requirements described in paragraphs 
    (1)(B)(ii)(IV) and (2)(B)(ii)(IV), the milestones shall be designed 
    to achieve an overall thermal design efficiency improvement, 
    compared to the efficiency of the unit as operated, of not less 
    than--
            (A) 7 percent for coal of more than 9,000 Btu;
            (B) 6 percent for coal of 7,000 to 9,000 Btu; or
            (C) 4 percent for coal of less than 7,000 Btu.
        (5) Administration.--
            (A) Elevation of site.--In evaluating project proposals to 
        achieve thermal efficiency levels established under paragraphs 
        (1)(B)(i) and (2)(B)(i) and in determining progress towards 
        thermal efficiency milestones under paragraphs (1)(B)(ii)(IV), 
        (2)(B)(ii)(IV), and (4), the Secretary shall take into account 
        and make adjustments for the elevation of the site at which a 
        project is proposed to be constructed.
            (B) Applicability of milestones.--In applying the thermal 
        efficiency milestones under paragraphs (1)(B)(ii)(IV), 
        (2)(B)(ii)(IV), and (4) to projects that separate and capture 
        at least 50 percent of the potential emissions of carbon 
        dioxide by a facility, the energy used for separation and 
        capture of carbon dioxide shall not be counted in calculating 
        the thermal efficiency.
            (C) Permitted uses.--In carrying out this section, the 
        Secretary may give priority to projects that include, as part 
        of the project--
                (i) the separation or capture of carbon dioxide; or
                (ii) the reduction of the demand for natural gas if 
            deployed.
    (c) Financial Criteria.--The Secretary shall not provide financial 
assistance under this subtitle for a project unless the recipient 
documents to the satisfaction of the Secretary that--
        (1) the recipient is financially responsible;
        (2) the recipient will provide sufficient information to the 
    Secretary to enable the Secretary to ensure that the funds are 
    spent efficiently and effectively; and
        (3) a market exists for the technology being demonstrated or 
    applied, as evidenced by statements of interest in writing from 
    potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that, as determined by the Secretary--
        (1) meet the requirements of subsections (a), (b), and (c); and
        (2) are likely--
            (A) to achieve overall cost reductions in the use of coal 
        to generate useful forms of energy or chemical feedstocks;
            (B) to improve the competitiveness of coal among various 
        forms of energy in order to maintain a diversity of fuel 
        choices in the United States to meet electricity generation 
        requirements; and
            (C) to demonstrate methods and equipment that are 
        applicable to 25 percent of the electricity generating 
        facilities, using various types of coal, that use coal as the 
        primary feedstock as of the date of enactment of this Act.
    (e) Cost-Sharing.--In carrying out this subtitle, the Secretary 
shall require cost sharing in accordance with section 988.
    (f) Scheduled Completion of Selected Projects.--
        (1) In general.--In selecting a project for financial 
    assistance under this section, the Secretary shall establish a 
    reasonable period of time during which the owner or operator of the 
    project shall complete the construction or demonstration phase of 
    the project, as the Secretary determines to be appropriate.
        (2) Condition of financial assistance.--The Secretary shall 
    require as a condition of receipt of any financial assistance under 
    this subtitle that the recipient of the assistance enter into an 
    agreement with the Secretary not to request an extension of the 
    time period established for the project by the Secretary under 
    paragraph (1).
        (3) Extension of time period.--
            (A) In general.--Subject to subparagraph (B), the Secretary 
        may extend the time period established under paragraph (1) if 
        the Secretary determines, in the sole discretion of the 
        Secretary, that the owner or operator of the project cannot 
        complete the construction or demonstration phase of the project 
        within the time period due to circumstances beyond the control 
        of the owner or operator.
            (B) Limitation.--The Secretary shall not extend a time 
        period under subparagraph (A) by more than 4 years.
    (g) Fee Title.--The Secretary may vest fee title or other property 
interests acquired under cost-share clean coal power initiative 
agreements under this subtitle in any entity, including the United 
States.
    (h) Data Protection.--For a period not exceeding 5 years after 
completion of the operations phase of a cooperative agreement, the 
Secretary may provide appropriate protections (including exemptions 
from subchapter II of chapter 5 of title 5, United States Code) against 
the dissemination of information that--
        (1) results from demonstration activities carried out under the 
    clean coal power initiative program; and
        (2) would be a trade secret or commercial or financial 
    information that is privileged or confidential if the information 
    had been obtained from and first produced by a non-Federal party 
    participating in a clean coal power initiative project.
    (i) Applicability.--No technology, or level of emission reduction, 
solely by reason of the use of the technology, or the achievement of 
the emission reduction, by 1 or more facilities receiving assistance 
under this Act, shall be considered to be--
        (1) adequately demonstrated for purposes of section 111 of the 
    Clean Air Act (42 U.S.C. 7411);
        (2) achievable for purposes of section 169 of that Act (42 
    U.S.C. 7479); or
        (3) achievable in practice for purposes of section 171 of that 
    Act (42 U.S.C. 7501).

SEC. 403. REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
once every 2 years thereafter through 2014, the Secretary, in 
consultation with other appropriate Federal agencies, shall submit to 
Congress a report describing--
        (1) the technical milestones set forth in section 402 and how 
    those milestones ensure progress toward meeting the requirements of 
    subsections (b)(1)(B) and (b)(2) of section 402; and
        (2) the status of projects funded under this subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

    (a) In General.--As part of the clean coal power initiative, the 
Secretary shall award competitive, merit-based grants to institutions 
of higher education for the establishment of centers of excellence for 
energy systems of the future.
    (b) Basis for Grants.--The Secretary shall award grants under this 
section to institutions of higher education that show the greatest 
potential for advancing new clean coal technologies.

                    Subtitle B--Clean Power Projects

SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary may provide loan guarantees for a project to produce energy 
from coal of less than 7,000 Btu/lb. using appropriate advanced 
integrated gasification combined cycle technology, including repowering 
of existing facilities, that--
        (1) is combined with wind and other renewable sources;
        (2) minimizes and offers the potential to sequester carbon 
    dioxide emissions; and
        (3) provides a ready source of hydrogen for near-site fuel cell 
    demonstrations.
    (b) Requirements.--The facility--
        (1) may be built in stages;
        (2) shall have a combined output of at least 200 megawatts at 
    successively more competitive rates; and
        (3) shall be located in the Upper Great Plains.
    (c) Technical Criteria.--Technical criteria described in section 
402(b) shall apply to the facility.
    (d) Investment Tax Credits.--
        (1) In general.--The loan guarantees provided under this 
    section do not preclude the facility from receiving an allocation 
    for investment tax credits under section 48A of the Internal 
    Revenue Code of 1986.
        (2) Other funding.--Use of the investment tax credit described 
    in paragraph (1) does not prohibit the use of other clean coal 
    program funding.

SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN 
              SERVICE.

    (a) Definitions.--In this section:
        (1) Borrower.--The term ``borrower'' means the owner of the 
    clean coal technology plant.
        (2) Clean coal technology plant.--The term ``clean coal 
    technology plant'' means the plant located near Healy, Alaska, 
    constructed under Department cooperative agreement number DE-FC-22-
    91PC90544.
        (3) Cost of a direct loan.--The term ``cost of a direct loan'' 
    has the meaning given the term in section 502(5)(B) of the Federal 
    Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).
    (b) Authorization.--Subject to subsection (c), the Secretary shall 
use amounts made available under subsection (e) to provide the cost of 
a direct loan to the borrower for purposes of placing the clean coal 
technology plant into reliable operation for the generation of 
electricity.
    (c) Requirements.--
        (1) Maximum loan amount.--The amount of the direct loan 
    provided under subsection (b) shall not exceed $80,000,000.
        (2) Determinations by secretary.--Before providing the direct 
    loan to the borrower under subsection (b), the Secretary shall 
    determine that--
            (A) the plan of the borrower for placing the clean coal 
        technology plant in reliable operation has a reasonable 
        prospect of success;
            (B) the amount of the loan (when combined with amounts 
        available to the borrower from other sources) will be 
        sufficient to carry out the project; and
            (C) there is a reasonable prospect that the borrower will 
        repay the principal and interest on the loan.
        (3) Interest; term.--The direct loan provided under subsection 
    (b) shall bear interest at a rate and for a term that the Secretary 
    determines appropriate, after consultation with the Secretary of 
    the Treasury, taking into account the needs and capacities of the 
    borrower and the prevailing rate of interest for similar loans made 
    by public and private lenders.
        (4) Additional terms and conditions.--The Secretary may require 
    any other terms and conditions that the Secretary determines to be 
    appropriate.
    (d) Use of Payments.--The Secretary shall retain any payments of 
principal and interest on the direct loan provided under subsection (b) 
to support energy research and development activities, to remain 
available until expended, subject to any other conditions in an 
applicable appropriations Act.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to provide the cost of a direct 
loan under subsection (b).

SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary shall carry out a project to demonstrate production of energy 
from coal mined in the western United States using integrated 
gasification combined cycle technology (referred to in this section as 
the ``demonstration project'').
    (b) Components.--The demonstration project--
        (1) may include repowering of existing facilities;
        (2) shall be designed to demonstrate the ability to use coal 
    with an energy content of not more than 9,000 Btu/lb.; and
        (3) shall be capable of removing and sequestering carbon 
    dioxide emissions.
    (c) All Types of Western Coals.--Notwithstanding the foregoing, and 
to the extent economically feasible, the demonstration project shall 
also be designed to demonstrate the ability to use a variety of types 
of coal (including subbituminous and bituminous coal with an energy 
content of up to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located in a 
western State at an altitude of greater than 4,000 feet above sea 
level.
    (e) Cost Sharing.--The Federal share of the cost of the 
demonstration project shall be determined in accordance with section 
988.
    (f) Loan Guarantees.--Notwithstanding title XIV, the demonstration 
project shall not be eligible for Federal loan guarantees.

SEC. 414. COAL GASIFICATION.

    The Secretary is authorized to provide loan guarantees for a 
project to produce energy from a plant using integrated gasification 
combined cycle technology of at least 400 megawatts in capacity that 
produces power at competitive rates in deregulated energy generation 
markets and that does not receive any subsidy (direct or indirect) from 
ratepayers.

SEC. 415. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for at least 
5 petroleum coke gasification projects.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

    The Secretary shall use $5,000,000 from amounts appropriated to 
initiate, through the Chicago Operations Office, a project to 
demonstrate the viability of high-energy electron scrubbing technology 
on commercial-scale electrical generation using high-sulfur coal.

SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN 
              COAL.

    (a) In General.--The Secretary shall carry out a program to 
evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch transportation 
fuels, and other transportation fuels, manufactured from Illinois basin 
coal, including the capital modification of existing facilities and the 
construction of testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the commercial and 
technical viability of different processes for producing Fischer-
Tropsch transportation fuels, and other transportation fuels, from 
Illinois basin coal, the Secretary shall support the use and capital 
modification of existing facilities and the construction of new 
facilities at--
        (1) Southern Illinois University Coal Research Center;
        (2) University of Kentucky Center for Applied Energy Research; 
    and
        (3) Energy Center at Purdue University.
    (c) Gasification Products Test Center.--In conjunction with the 
activities described in subsections (a) and (b), the Secretary shall 
construct a test center to evaluate and confirm liquid and gas products 
from syngas catalysis in order that the system has an output of at 
least 500 gallons of Fischer-Tropsch transportation fuel per day in a 
24-hour operation.
    (d) Milestones.--
        (1) Selection of processes.--Not later than 180 days after the 
    date of enactment of this Act, the Secretary shall select processes 
    for evaluating the commercial and technical viability of different 
    processes of producing Fischer-Tropsch transportation fuels, and 
    other transportation fuels, from Illinois basin coal.
        (2) Agreements.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary shall offer to enter into 
    agreements--
            (A) to carry out the activities described in this section, 
        at the facilities described in subsection (b); and
            (B) for the capital modifications or construction of the 
        facilities at the locations described in subsection (b).
        (3) Evaluations.--Not later than 3 years after the date of 
    enactment of the Act, the Secretary shall begin, at the facilities 
    described in subsection (b), evaluation of the technical and 
    commercial viability of different processes of producing Fischer-
    Tropsch transportation fuels, and other transportation fuels, from 
    Illinois basin coal.
        (4) Construction of facilities.--
            (A) In general.--The Secretary shall construct the 
        facilities described in subsection (b) at the lowest cost 
        practicable.
            (B) Grants or agreements.--The Secretary may make grants or 
        enter into agreements or contracts with the institutions of 
        higher education described in subsection (b).
    (e) Cost Sharing.--The cost of making grants under this section 
shall be shared in accordance with section 988.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $85,000,000 for the period of 
fiscal years 2006 through 2010.

                 Subtitle C--Coal and Related Programs

SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

    (a) Amendment.--The Energy Policy Act of 1992 (42 U.S.C. 13201 et 
seq.) is amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. PURPOSES.

    ``The purposes of this title are to--
        ``(1) promote national energy policy and energy security, 
    diversity, and economic competitiveness benefits that result from 
    the increased use of coal;
        ``(2) mitigate financial risks, reduce the cost of clean coal 
    generation, and increase the marketplace acceptance of clean coal 
    generation and pollution control equipment and processes; and
        ``(3) facilitate the environmental performance of clean coal 
    generation.

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program of 
financial assistance to--
        ``(1) facilitate the production and generation of coal-based 
    power, through the deployment of clean coal electric generating 
    equipment and processes that, compared to equipment or processes 
    that are in operation on a full scale--
            ``(A) improve--
                ``(i) energy efficiency; or
                ``(ii) environmental performance consistent with 
            relevant Federal and State clean air requirements, 
            including those promulgated under the Clean Air Act (42 
            U.S.C. 7401 et seq.); and
            ``(B) are not yet cost competitive; and
        ``(2) facilitate the utilization of existing coal-based 
    electricity generation plants through projects that--
            ``(A) deploy advanced air pollution control equipment and 
        processes; and
            ``(B) are designed to voluntarily enhance environmental 
        performance above current applicable obligations under the 
        Clean Air Act and State implementation efforts pursuant to such 
        Act.
    ``(b) Financial Criteria.--As determined by the Secretary for a 
particular project, financial assistance under this title shall be in 
the form of--
        ``(1) cost-sharing of an appropriate percentage of the total 
    project cost, not to exceed 50 percent as calculated under section 
    988 of the Energy Policy Act of 2005; or
        ``(2) financial assistance, including grants, cooperative 
    agreements, or loans as authorized under this Act or other 
    statutory authority of the Secretary.

``SEC. 3103. GENERATION PROJECTS.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(1) may include--
        ``(1) equipment or processes previously supported by a 
    Department of Energy program;
        ``(2) advanced combustion equipment and processes that the 
    Secretary determines will be cost-effective and could substantially 
    contribute to meeting environmental or energy needs, including 
    gasification, gasification fuel cells, gasification coproduction, 
    oxidation combustion techniques, ultra-supercritical boilers, and 
    chemical looping; and
        ``(3) hybrid gasification/combustion systems, including systems 
    integrating fuel cells with gasification or combustion units.
    ``(b) Criteria.--The Secretary shall establish criteria for the 
selection of generation projects under section 3102(a)(1). The 
Secretary may modify the criteria as appropriate to reflect 
improvements in equipment, except that the criteria shall not be 
modified to be less stringent. The selection criteria shall include--
        ``(1) prioritization of projects whose installation is likely 
    to result in significant air quality improvements in nonattainment 
    air quality areas;
        ``(2) prioritization of projects whose installation is likely 
    to result in lower emission rates of pollution;
        ``(3) prioritization of projects that result in the repowering 
    or replacement of older, less efficient units;
        ``(4) documented broad interest in the procurement of the 
    equipment and utilization of the processes used in the projects by 
    owners or operators of facilities for electricity generation;
        ``(5) equipment and processes beginning in 2006 through 2011 
    that are projected to achieve a thermal efficiency of--
            ``(A) 40 percent for coal of more than 9,000 Btu per pound 
        based on higher heating values;
            ``(B) 38 percent for coal of 7,000 to 9,000 Btu per pound 
        passed on higher heating values; and
            ``(C) 36 percent for coal of less than 7,000 Btu per pound 
        based on higher heating values;
    except that energy used for coproduction or cogeneration shall not 
    be counted in calculating the thermal efficiency under this 
    paragraph; and
        ``(6) equipment and processes beginning in 2012 and 2013 that 
    are projected to achieve a thermal efficiency of--
            ``(A) 45 percent for coal of more than 9,000 Btu per pound 
        based on higher heating values;
            ``(B) 44 percent for coal of 7,000 to 9,000 Btu per pound 
        passed on higher heating values; and
            ``(C) 40 percent for coal of less than 7,000 Btu per pound 
        based on higher heating values;
    except that energy used for coproduction or cogeneration shall not 
    be counted in calculating the thermal efficiency under this 
    paragraph.
    ``(c) Program Balance and Priority.--In carrying out the program 
under section 3102(a)(1), the Secretary shall ensure, to the extent 
practicable, that--
        ``(1) between 25 percent and 75 percent of the projects 
    supported are for the sole purpose of electrical generation; and
        ``(2) priority is given to projects that use electrical 
    generation equipment and processes that have been developed and 
    demonstrated and applied in actual production of electricity, but 
    are not yet cost-competitive, and that achieve greater efficiency 
    and environmental performance.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out section 3102(a)(1)--
        ``(1) $250,000,000 for fiscal year 2007;
        ``(2) $350,000,000 for fiscal year 2008;
        ``(3) $400,000,000 for each of fiscal years 2009 through 2012; 
    and
        ``(4) $300,000,000 for fiscal year 2013.
    ``(e) Applicability.--No technology, or level of emission 
reduction, shall be treated as adequately demonstrated for purpose of 
section 111 of the Clean Air Act (42 U.S.C. 7411), achievable for 
purposes of section 169 of that Act (42 U.S.C. 7479), or achievable in 
practice for purposes of section 171 of that Act (42 U.S.C. 7501) 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under section 3102(a)(1).

``SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(2) shall--
        ``(1) utilize technologies that meet relevant Federal and State 
    clean air requirements applicable to the unit or facility, 
    including being adequately demonstrated for purposes of section 111 
    of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of 
    section 169 of that Act (42 U.S.C. 7479), or achievable in practice 
    for purposes of section 171 of that Act (42 U.S.C. 7501); or
        ``(2) utilize equipment or processes that exceed relevant 
    Federal or State clean air requirements applicable to the unit or 
    facilities included in the projects by achieving greater efficiency 
    or environmental performance.
    ``(b) Priority in Project Selection.--In making an award under 
section 3102(a)(2), the Secretary shall give priority to--
        ``(1) projects whose installation is likely to result in 
    significant air quality improvements in nonattainment air quality 
    areas or substantially reduce the emission level of criteria 
    pollutants and mercury air emissions;
        ``(2) projects for pollution control that result in the 
    mitigation or collection of more than 1 pollutant; and
        ``(3) projects designed to allow the use of the waste 
    byproducts or other byproducts of the equipment.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out section 3102(a)(2)--
        ``(1) $300,000,000 for fiscal year 2007;
        ``(2) $100,000,000 for fiscal year 2008;
        ``(3) $40,000,000 for fiscal year 2009;
        ``(4) $30,000,000 for fiscal year 2010; and
        ``(5) $30,000,000 for fiscal year 2011.
    ``(d) Applicability.--No technology, or level of emission reduction 
under subsection (a)(2) shall be treated as adequately demonstrated for 
purpose of Section 111 of the Clean Air Act (42 U.S.C. 7411), 
achievable for purposes of section 169 of that Act (42 U.S.C. 7479), or 
achievable in practice for purposes of section 171 of that Act (42 
U.S.C. 7501) solely by reason of the use of such technology, or the 
achievement of such emission reduction, by one or more facilities 
receiving assistance under section 3102(a)(2).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding 
at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

    ``Sec. 3101. Purposes.
    ``Sec. 3102. Authorization of program.
    ``Sec. 3103. Generation projects.
    ``Sec. 3104. Air quality enhancement program.''.

                    Subtitle D--Federal Coal Leases

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Coal Leasing Amendments Act of 
2005''.

SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended--
        (1) in the first sentence, by striking ``Any person'' and 
    inserting the following: ``(a)(1) Except as provided in paragraph 
    (3), on a finding by the Secretary under paragraph (2), any 
    person'';
        (2) in the second sentence, by striking ``The Secretary'' and 
    inserting the following:
    ``(b) The Secretary'';
        (3) in the third sentence, by striking ``The minimum'' and 
    inser