[SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESS House Bills]
[From the U.S. Government Printing Office via GPO Access]
[Public Print]
[DOCID: f:h6pp.txt]

                             July 14, 2005

                    Ordered to be printed as passed

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 28, 2005.
    Resolved, That the bill from the House of Representatives (H.R. 6) 
entitled ``An Act to ensure jobs for our future with secure, 
affordable, and reliable energy.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

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 of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                       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. Federal building performance standards.
Sec. 108. Increased use of recovered mineral component in federally 
                            funded projects involving procurement of 
                            cement or concrete.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Weatherization assistance.
Sec. 122. State energy programs.
Sec. 123. Energy efficient appliance rebate programs.
Sec. 124. Energy efficient public buildings.
Sec. 125. Low income community energy efficiency pilot program.
Sec. 126. State technologies advancement collaborative.
Sec. 127. 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. Expedited rulemaking.
Sec. 138. Energy labeling.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Energy efficiency resource programs.
Sec. 142. Fuel efficient engine technology for aircraft.
Sec. 143. Motor vehicle tires supporting maximum fuel efficiency.

               Subtitle D--Measures to Conserve Petroleum

Sec. 151. Reduction of dependence on imported petroleum.

                Subtitle E--Energy Efficiency in Housing

Sec. 161. Public Housing Capital Fund.
Sec. 162. Energy efficient appliances.
Sec. 163. Energy efficiency standards.
Sec. 164. Energy strategy for the Department of Housing and Urban 
                            Development.

                       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.

                       Subtitle B--Reliable Fuels

Sec. 211. Renewable content of gasoline.
Sec. 212. Renewable fuel.
Sec. 213. Survey of renewable fuels consumption.

                 Subtitle C--Federal Reformulated Fuels

Sec. 221. Short title.
Sec. 222. Leaking underground storage tanks.
Sec. 223. Restrictions on the use of MTBE.
Sec. 224. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 225. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 226. Analyses of motor vehicle fuel changes.
Sec. 227. Additional opt-in areas under reformulated gasoline program.
Sec. 228. Federal enforcement of State fuels requirements.
Sec. 229. Fuel system requirements harmonization study.
Sec. 230. Advanced biofuel technologies program.
Sec. 231. Sugar cane ethanol program.
Sec. 232. National Priority Project Designation.
Sec. 233. Rural and remote community electrification grants.
Sec. 234. Waste-derived ethanol and biodiesel.

                       Subtitle D--Insular Energy

Sec. 241. Definitions.
Sec. 242. Assessment.
Sec. 243. Project feasibility studies.
Sec. 244. Implementation.
Sec. 245. Authorization of appropriations.

                       Subtitle E--Biomass Energy

Sec. 251. Definitions.
Sec. 252. Biomass commercial utilization grant program.
Sec. 253. Improved biomass utilization program.
Sec. 254. Report.

                     Subtitle F--Geothermal Energy

Sec. 261. Competitive lease sale requirements.
Sec. 262. Direct use.
Sec. 263. Royalties.
Sec. 264. Geothermal leasing and permitting on Federal land.
Sec. 265. Assessment of geothermal energy potential.
Sec. 266. Cooperative or unit plans.
Sec. 267. Royalty on byproducts.
Sec. 268. Lease duration and work commitment requirements.
Sec. 269. Annual rental.
Sec. 270. Advanced royalties required for cessation of production.
Sec. 271. Leasing and permitting on Federal land withdrawn for military 
                            purposes.
Sec. 272. Technical amendments.

                       Subtitle G--Hydroelectric

Sec. 281. Alternative conditions and fishways.
Sec. 282. Alaska State jurisdiction over small hydroelectric projects.
Sec. 283. Flint Creek hydroelectric project.

                Subtitle H--Renewable Portfolio Standard

Sec. 291. Renewable portfolio standard.

                         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. Small Business and Agricultural Producer Energy Emergency 
                            Disaster Loan Program.

                   Subtitle B--Production Incentives

Sec. 311. Definition of Secretary.
Sec. 312. Program on oil and gas royalties in-kind.
Sec. 313. Marginal property production incentives.
Sec. 314. Incentives for natural gas production from deep wells in the 
                            shallow waters of the Gulf of Mexico.
Sec. 315. Royalty relief for deep water production.
Sec. 316. Alaska offshore royalty suspension.
Sec. 317. Oil and gas leasing in the National Petroleum Reserve in 
                            Alaska.
Sec. 318. North slope science initiative.
Sec. 319. Orphaned, abandoned, or idled wells on Federal land.
Sec. 320. Combined hydrocarbon leasing.
Sec. 321. Alternate energy-related uses on the outer Continental Shelf.
Sec. 322. Preservation of geological and geophysical data.
Sec. 323. Oil and gas lease acreage limitations.
Sec. 324. Assessment of dependence of State of Hawaii on oil.
Sec. 325. Denali Commission.
Sec. 326. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 327. Review and demonstration program for oil and natural gas 
                            production.
Sec. 328. No Oil Producing and Exporting Cartels.

                   Subtitle C--Access to Federal Land

Sec. 341. Federal onshore oil and gas leasing practices.
Sec. 342. Management of Federal oil and gas leasing programs.
Sec. 343. Consultation regarding oil and gas leasing on public land.
Sec. 344. Pilot project to improve Federal permit coordination.
Sec. 345. Energy facility rights-of-ways and corridors on Federal land.
Sec. 346. Oil shale and tar sands.
Sec. 347. Finger Lakes withdrawal.
Sec. 348. Reinstatement of leases.

                      Subtitle D--Coastal Programs

Sec. 371. Coastal impact assistance program.

                        Subtitle E--Natural Gas

Sec. 381. Exportation or importation of natural gas.
Sec. 382. New natural gas storage facilities. 
Sec. 383. Process coordination; hearings; rules of procedures.
Sec. 384. Penalties.
Sec. 385. Market manipulation.
Sec. 386. Natural gas market transparency rules.
Sec. 387. Deadline for decision on appeals of consistency determination 
                            under the Coastal Zone Management Act of 
                            1972.
Sec. 388. Federal-State liquefied natural gas forums.
Sec. 389. Prohibition of trading and serving by certain persons.

             Subtitle F--Federal Coalbed Methane Regulation

Sec. 391. Federal coalbed methane regulation.

                             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.
Sec. 405. Integrated coal/renewable energy system.
Sec. 406. Loan to place Alaska clean coal technology facility in 
                            service.
Sec. 407. Western integrated coal gasification demonstration project.

                    Subtitle B--Federal Coal Leases

Sec. 411. Repeal of the 160-acre limitation for coal leases.
Sec. 412. Mining plans.
Sec. 413. Payment of advance royalties under coal leases.
Sec. 414. Elimination of deadline for submission of coal lease 
                            operation and reclamation plan.
Sec. 415. Department of Energy transportation fuels from Illinois basin 
                            coal.
Sec. 416. 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. Four Corners transmission line project and electrification.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.

                       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 of Energy 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. Medical isotope production: nonproliferation, antiterrorism, 
                            and resource review.
Sec. 622. Safe disposal of greater-than-class C radioactive waste.
Sec. 623. Prohibition on nuclear exports to countries that sponsor 
                            terrorism.
Sec. 624. Decommissioning pilot program.
Sec. 625. Whistleblower protection for employees of the Department of 
                            Energy.

           Subtitle C--Next Generation Nuclear Plant Project

Sec. 631. Project establishment.
Sec. 632. Project management.
Sec. 633. Project organization.
Sec. 634. Nuclear regulatory commission.
Sec. 635. Project timelines and authorization of appropriations.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Fuel use credits.
Sec. 703. Incremental cost allocation.
Sec. 704. Alternative compliance and flexibility.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
                            purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization 
                            initiative.

                   Subtitle B--Automobile Efficiency

                Chapter 1--Maximum Average Fuel Economy

Sec. 711. Revised considerations for decisions on maximum feasible 
                            average fuel economy.
Sec. 712. Increased fuel economy standards.
Sec. 713. Expedited procedures for Congressional increase in fuel 
                            economy standards.
Sec. 714. Extension of maximum fuel economy increase for alternative 
                            fueled vehicles.

                   Chapter 2--Advanced Clean Vehicles

Sec. 721. Hybrid vehicles research and development.
Sec. 722. Diesel fueled vehicles research and development.
Sec. 723. Procurement of alternative fueled passenger automobiles.
Sec. 724. Procurement of hybrid light duty trucks.
Sec. 725. Definitions.

                       Subtitle C--Miscellaneous

Sec. 731. Railroad efficiency.
Sec. 732. Conserve by bicycling program.
Sec. 733. Reduction of engine idling of heavy-duty vehicles.
Sec. 734. Biodiesel engine testing project.
Sec. 735. Investigation of gasoline prices.

               Subtitle D--Federal and State Procurement

Sec. 741. Definitions.
Sec. 742. Federal and State procurement of fuel cell vehicles and 
                            hydrogen energy systems.
Sec. 743. Federal procurement of stationary, portable, and micro fuel 
                            cells.

                 Subtitle E--Diesel Emissions Reduction

Sec. 751. Definitions.
Sec. 752. National grant and loan programs.
Sec. 753. State grant and loan programs.
Sec. 754. Evaluation and report.
Sec. 755. Outreach and incentives.
Sec. 756. Effect of subtitle.
Sec. 757. Authorization of appropriations.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen research, development, and demonstration.

                   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. Secondary electric vehicle battery use program.
Sec. 915. Energy Efficiency Science Initiative.
Sec. 916. Building Standards.

       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 program.
Sec. 925. Electric transmission and distribution programs.

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Hydrogen intermediate fuels research program.
Sec. 934. Concentrating solar power research program.
Sec. 935. Hybrid solar lighting research and development program.
Sec. 936. Miscellaneous projects.
Sec. 937. Biomass research and development.
Sec. 938. Production incentives for cellulosic biofuels.
Sec. 939. Procurement of biobased products.
Sec. 940. Small business bioproduct marketing and certification grants.
Sec. 941. Regional bioeconomy development grants.
Sec. 942. Preprocessing and harvesting demonstration grants.
Sec. 943. Education and outreach.
Sec. 944. Reports.

                       Subtitle D--Nuclear Energy

Sec. 945. Nuclear energy.
Sec. 946. Nuclear energy research programs.
Sec. 947. Advanced fuel cycle initiative.
Sec. 948. Nuclear science and engineering support for institutions of 
                            higher education.
Sec. 949. Security of nuclear facilities.
Sec. 950. Alternatives to industrial radioactive sources.

                       Subtitle E--Fossil Energy

Sec. 951. Fossil energy.
Sec. 952. Oil and gas research programs.
Sec. 953. Methane hydrate research.
Sec. 954. Low-volume gas reservoir research program.
Sec. 955. Research and development for coal mining technologies.
Sec. 956. Coal and related technologies program.
Sec. 957. Carbon capture research and development program.
Sec. 958. Complex well technology testing facility.

                          Subtitle F--Science

Sec. 961. Science.
Sec. 962. Fusion energy sciences program.
Sec. 963. Support for science and energy facilities and infrastructure.
Sec. 964. Catalysis research program.
Sec. 965. Hydrogen.
Sec. 966. Solid state lighting.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and fusion energy materials research program.
Sec. 970. Energy-Water Supply Technologies Program.
Sec. 971. Spallation neutron source.

                 Subtitle G--International Cooperation

Sec. 981. Western Hemisphere energy cooperation.
Sec. 982. Cooperation between United States and Israel.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Availability of funds.
Sec. 1002. Cost sharing.
Sec. 1003. Merit review of proposals.
Sec. 1004. External technical review of Departmental programs.
Sec. 1005. Improved technology transfer of energy technologies.
Sec. 1006. Technology Infrastructure Program.
Sec. 1007. Small business advocacy and assistance.
Sec. 1008. Outreach.
Sec. 1009. Relationship to other laws.
Sec. 1010. Improved coordination and management of civilian science and 
                            technology programs.
Sec. 1011. Other transactions authority.
Sec. 1012. Prizes for achievement in grand challenges of science and 
                            technology.
Sec. 1013. Technical corrections.

                    TITLE XI--PERSONNEL AND TRAINING

Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Energy research fellowships.
Sec. 1103. Educational programs in science and mathematics.
Sec. 1104. Training guidelines for electric energy industry personnel.
Sec. 1105. National Center for Energy Management and Building 
                            Technologies.
Sec. 1106. Improved access to energy-related scientific and technical 
                            careers.
Sec. 1107. 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. Regional Transmission Organizations.
Sec. 1233. Federal utility participation in Transmission Organizations.
Sec. 1234. Standard market design.
Sec. 1235. Native load service obligation.
Sec. 1236. Protection of transmission contracts in the Pacific 
                            Northwest.

                  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--Market Transparency, Enforcement, and Consumer Protection

Sec. 1261. Market transparency rules.
Sec. 1262. False statements.
Sec. 1263. Market manipulation.
Sec. 1264. Enforcement.
Sec. 1265. Refund effective date.
Sec. 1266. Refund authority.
Sec. 1267. Consumer privacy and unfair trade practices.
Sec. 1268. Office of Consumer Advocacy.
Sec. 1269. Authority of court to prohibit persons from serving as 
                            officers, directors, and energy traders.
Sec. 1270. Relief for extraordinary violations.

             Subtitle G--Repeal of PUHCA and Merger Reform

Sec. 1271. Short title.
Sec. 1272. Definitions.
Sec. 1273. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1274. Federal access to books and records.
Sec. 1275. State access to books and records.
Sec. 1276. Exemption authority.
Sec. 1277. Affiliate transactions.
Sec. 1278. Applicability.
Sec. 1279. Effect on other regulations.
Sec. 1280. Enforcement.
Sec. 1281. Savings provisions.
Sec. 1282. Implementation.
Sec. 1283. Transfer of resources.
Sec. 1284. Effective date.
Sec. 1285. Service allocation.
Sec. 1286. Authorization of appropriations.
Sec. 1287. Conforming amendments to the Federal Power Act.
Sec. 1288. Merger review reform.

                        Subtitle H--Definitions

Sec. 1291. Definitions.
Sec. 1292. Energy policy and conservation technical correction.

            Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                          TITLE XIII--STUDIES

Sec. 1301. Energy and water saving measures in congressional buildings.
Sec. 1302. Increased hydroelectric generation at existing Federal 
                            facilities.
Sec. 1303. Alaska Natural Gas Pipeline.
Sec. 1304. Renewable energy on Federal land.
Sec. 1305. Coalbed methane study.
Sec. 1306. Backup fuel capability study.
Sec. 1307. Indian land rights-of-way.
Sec. 1308. Review of Energy Policy Act of 1992 programs.
Sec. 1309. Study of feasibility and effects of reducing use of fuel for 
                            automobiles.
Sec. 1310. Hybrid distributed power systems.
Sec. 1311. Mobility of scientific and technical personnel.
Sec. 1312. National Academy of Sciences report.
Sec. 1313. Report on research and development program evaluation 
                            methodologies.
Sec. 1314. Transmission system monitoring study.
Sec. 1315. Interagency review of competition in the wholesale and 
                            retail markets for electric energy.
Sec. 1316. Study on the benefits of economic dispatch.
Sec. 1317. Study of rapid electrical grid restoration.
Sec. 1318. Study of distributed generation.
Sec. 1319. Study on inventory of petroleum and natural gas storage.
Sec. 1320. Natural gas supply shortage report.
Sec. 1321. Split-estate Federal oil and gas leasing and development 
                            practices.
Sec. 1322. Resolution of Federal resource development conflicts in the 
                            Powder River Basin.
Sec. 1323. Study of energy efficiency standards.
Sec. 1324. Telecommuting study.
Sec. 1325. Oil bypass filtration technology.
Sec. 1326. Total integrated thermal systems.
Sec. 1327. University collaboration.
Sec. 1328. Hydrogen participation study.
Sec. 1329. Overall employment in a hydrogen economy.
Sec. 1330. Study of best management practices for energy research and 
                            development programs.
Sec. 1331. Effect of electrical contaminants on reliability of energy 
                            production systems.
Sec. 1332. Alternative fuels reports.
Sec. 1333. Final action on refunds for excessive charges.
Sec. 1334. Fuel cell and hydrogen technology study.
Sec. 1335. Passive solar technologies.
Sec. 1336. Study of link between energy security and increases in 
                            vehicle miles traveled.
Sec. 1337. Study of availability of skilled workers.
Sec. 1338. Science Study on Cumulative Impacts of Multiple Offshore 
                            Liquefied Natural Gas Facilities.

           TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1401. Definitions.
Sec. 1402. Terms and conditions.
Sec. 1403. Eligible projects.
Sec. 1404. Authorization of appropriations.

                 TITLE XV--ENERGY POLICY TAX INCENTIVES

Sec. 1500. Short title; amendment of 1986 Code.

                 Subtitle A--Electricity Infrastructure

Sec. 1501. Extension and modification of renewable electricity 
                            production credit.
Sec. 1502. Application of section 45 credit to agricultural 
                            cooperatives.
Sec. 1503 Expansion of resources to wave, current, tidal, and ocean 
                            thermal energy.
Sec. 1504. Clean renewable energy bonds.
Sec. 1505. Treatment of income of certain electric cooperatives.
Sec. 1506. Dispositions of transmission property to implement FERC 
                            restructuring policy.
Sec. 1507. Credit for production from advanced nuclear power 
                            facilities.
Sec. 1508. Credit for investment in clean coal facilities.
Sec. 1509. Clean energy coal bonds.

               Subtitle B--Domestic Fossil Fuel Security

Sec. 1511. Credit for investment in clean coke/cogeneration 
                            manufacturing facilities.
Sec. 1512. Temporary expensing for equipment used in refining of liquid 
                            fuels.
Sec. 1513. Pass through to patrons of deduction for capital costs 
                            incurred by small refiner cooperatives in 
                            complying with Environmental Protection 
                            Agency sulfur regulations.
Sec. 1514. Modifications to enhanced oil recovery credit.
Sec. 1515. Natural gas distribution lines treated as 15-year property.

       Subtitle C--Conservation and Energy Efficiency Provisions

Sec. 1521. Energy efficient commercial buildings deduction.
Sec. 1522. Credit for construction of new energy efficient homes.
Sec. 1523. Deduction for business energy property.
Sec. 1524. Credit for certain nonbusiness energy property.
Sec. 1525. Energy credit for combined heat and power system property.
Sec. 1526. Credit for energy efficient appliances.
Sec. 1527. Credit for residential energy efficient property.
Sec. 1528. Credit for business installation of qualified fuel cells and 
                            stationary microturbine power plants.
Sec. 1529. Business solar investment tax credit.

      Subtitle D--Alternative Motor Vehicles and Fuels Incentives

Sec. 1531. Alternative motor vehicle credit.
Sec. 1532. Modification of credit for qualified electric vehicles.
Sec. 1533. Credit for installation of alternative fueling stations.
Sec. 1534. Volumetric excise tax credit for alternative fuels.
Sec. 1535. Extension of excise tax provisions and income tax credit for 
                            biodiesel.

              Subtitle E--Additional Energy Tax Incentives

Sec. 1541. 10-year recovery period for underground natural gas storage 
                            facility property.
Sec. 1542. Expansion of research credit.
Sec. 1543. Small agri-biodiesel producer credit.
Sec. 1544. Improvements to small ethanol producer credit.
Sec. 1545. Credit for equipment for processing or sorting materials 
                            gathered through recycling.
Sec. 1546. 5-year net operating loss carryover if any resulting refund 
                            is used for electric transmission 
                            equipment.
Sec. 1547. Credit for qualifying pollution control equipment.
Sec. 1548. Credit for production of coal owned by Indian tribes.
Sec. 1549. Credit for replacement stoves meeting environmental 
                            standards in non-attainment areas.
Sec. 1550. Exemption for equipment for transporting bulk beds of farm 
                            crops from excise tax on retail sale of 
                            heavy trucks and trailers.
Sec. 1551. National Academy of Sciences study and report.
Sec. 1552. Income tax exclusion for certain fuel costs of rural 
                            carpools.
Sec. 1553. 3-year applicable recovery period for depreciation of 
                            qualified energy management devices.
Sec. 1554. Exception from volume cap for certain cooling facilities.

                 Subtitle F--Revenue Raising Provisions

Sec. 1561. Treatment of kerosene for use in aviation.
Sec. 1562. Repeal of ultimate vendor refund claims with respect to 
                            farming.
Sec. 1563. Refunds of excise taxes on exempt sales of fuel by credit 
                            card.
Sec. 1564. Additional requirement for exempt purchases.
Sec. 1565. Reregistration in event of change in ownership.
Sec. 1566. Treatment of deep-draft vessels.
Sec. 1567. Reconciliation of on-loaded cargo to entered cargo.
Sec. 1568. Taxation of gasoline blendstocks and kerosene.
Sec. 1569. Nonapplication of export exemption to delivery of fuel to 
                            motor vehicles removed from United States.
Sec. 1570. Penalty with respect to certain adulterated fuels.
Sec. 1571. Oil Spill Liability Trust Fund financing rate.
Sec. 1572. Extension of Leaking Underground Storage Tank Trust Fund 
                            financing rate.
Sec. 1573. Tire excise tax modification.

                       TITLE XVI--CLIMATE CHANGE

       Subtitle A--National Climate Change Technology Deployment

Sec. 1601. Greenhouse gas intensity reducing technology strategies.
Sec. 1602. Climate infrastructure credit.

    Subtitle B--Climate Change Technology Deployment in Developing 
                               Countries

Sec. 1611. Climate change technology deployment in developing 
                            countries.
Sec. 1612. Sense of the Senate on climate change.

SEC. 2. DEFINITIONS.

    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 1 or more 
                        organizations referred to in subparagraph (A); 
                        and
                            (ii) is operated, supervised, or controlled 
                        by or in connection with 1 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--
            (1) by redesignating section 551 (42 U.S.C. 8259) as 
        section 553; and
            (2) by inserting after section 550 (42 U.S.C. 8258b) the 
        following:

``SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

    ``(a) Definitions.--In this section:
            ``(1) Congressional building.--The term `congressional 
        building' means a facility administered by Congress.
            ``(2) Plan.--The term `plan' means an energy conservation 
        and management plan developed under subsection (b)(1).
    ``(b) Plan.--
            ``(1) In general.--The Architect of the Capitol shall 
        develop, update, and implement a cost-effective energy 
        conservation and management plan for congressional buildings to 
        meet the energy performance requirements for Federal buildings 
        established under section 543(a)(1).
            ``(2) Requirements.--The plan shall include--
                    ``(A) a description of the life-cycle cost analysis 
                used to determine the cost-effectiveness of proposed 
                energy efficiency projects;
                    ``(B) a schedule that ensures that complete energy 
                surveys of all congressional buildings are conducted 
                every 5 years to determine the cost and payback period 
                of energy and water conservation measures;
                    ``(C) a strategy for installation of life-cycle 
                cost-effective energy and water conservation measures;
                    ``(D) the results of a study of the costs and 
                benefits of installation of submetering in 
                congressional buildings; and
                    ``(E) information packages and `how-to' guides for 
                each Member and employing authority of Congress that 
                describe simple and cost-effective methods to save 
                energy and taxpayer dollars in congressional buildings.
            ``(3) Submission to congress.--Not later than 180 days 
        after the date of enactment of the Energy Policy Act of 2005, 
        the Architect of the Capitol shall submit to Congress the plan 
        developed under paragraph (1).
    ``(c) Annual Report.--
            ``(1) In general.--The Architect of the Capitol shall 
        annually submit to Congress a report on congressional energy 
        management and conservation programs carried out for 
        congressional buildings under this section.
            ``(2) Requirements.--A report submitted under paragraph (1) 
        shall describe in detail--
                    ``(A) energy expenditures and savings estimates for 
                each congressional building;
                    ``(B) any energy management and conservation 
                projects for congressional buildings; and
                    ``(C) future priorities to ensure compliance with 
                this section.''.
    (b) Conforming Amendment.--The table of contents of the National 
Energy Conservation Policy Act is amended--
            (1) by redesignating the item relating to section 551 as 
        section 553; and
            (2) by inserting after the item relating to section 550 the 
        following:

``Sec. 551. 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.--Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is amended--
            (1) in paragraph (1), by striking ``Subject to'' and all 
        that follows and inserting ``(A) Subject to paragraph (2), each 
        agency shall apply energy conservation measures to, and shall 
        improve the design for the construction of, the Federal 
        buildings of the agency (including each industrial or 
        laboratory facility) so that the energy consumption for each 
        gross square foot of the Federal buildings of the agency for 
        fiscal years 2006 through 2015 is reduced, as compared with the 
        energy consumption for each gross square foot of the Federal 
        buildings of the agency for fiscal year 2004, 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.

    ``(B) The energy reduction goals and baseline established in 
subparagraph (A) supersede--
            ``(i) all goals and baselines under this paragraph in 
        effect on the day before the date of enactment of this 
        subparagraph; and
            ``(ii) any related reporting requirements.''; and
            (2) by adding at the end the following:
    ``(3) Not later than December 31, 2013, the Secretary shall--
            ``(A) review the results of the implementation of the 
        energy performance requirement established under paragraph (1); 
        and
            ``(B) submit to Congress recommendations concerning energy 
        performance requirements for each of fiscal years 2015 through 
        2024.''.
    (b) Exclusions; Review by Secretary; Criteria.--Section 543(c) of 
the National Energy Conservation Policy Act (42 U.S.C. 8253(c)) is 
amended--
            (1) in paragraph (1), by striking ``An agency may exclude'' 
        and all that follows 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 (42 U.S.C. 13201 et seq.), 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.'';
            (2) in paragraph (2)--
                    (A) in the second sentence--
                            (i) by striking ``impracticability 
                        standards'' and inserting ``standards for 
                        exclusion''; and
                            (ii) by striking ``a finding of 
                        impracticability'' and inserting ``the 
                        exclusion''; and
                    (B) in the third sentence, by striking ``energy 
                consumption requirements'' and inserting ``requirements 
                of subsections (a) and (b)(1)''; and
            (3) 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).''.
    (c) Retention of Energy and Water Savings.--Section 546 of the 
National Energy Conservation Policy Act (42 U.S.C. 8256) is amended--
            (1) in subsection (d)(2)(G), by inserting ``of the Energy 
        Policy Act of 1992 (42 U.S.C. 8262e)'' after ``159''; and
            (2) by adding at the end the following:
    ``(e) Retention of Energy and Water Savings.--(1) An agency may 
retain any funds appropriated to the agency for energy expenditures, 
water expenditures, or wastewater treatment expenditures, at buildings 
subject to the requirements of subsections (a) and (b) of section 543, 
that are not expended because of energy savings or water savings.
    ``(2) Except as otherwise provided by law, funds described in 
paragraph (1) may be used by an agency only for energy efficiency, 
water conservation, or unconventional and renewable energy resources 
projects.''.
    (d) 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''.
    (e) 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 amended by adding at the end the following:
    ``(e) Metering of Energy Use.--(1)(A) Not later than October 1, 
2012, in accordance with guidelines established by the Secretary under 
paragraph (2), each Federal building shall, for the purposes of 
efficient use of energy and reduction in the cost of electricity used 
in the building, be metered or submetered.
    ``(B) Each agency shall use, to the maximum extent practicable, 
advanced meters or advanced metering devices that provide data at least 
daily on, and that measure at least hourly, consumption of electricity 
in the Federal buildings of the agency.
    ``(C) The data shall be--
            ``(i) incorporated into Federal energy tracking systems; 
        and
            ``(ii) made available to Federal facility energy managers.
    ``(2)(A) Not later than 180 days after the date of enactment of 
this subsection, the Secretary (in consultation with the Secretary of 
Defense, the Administrator of General Services, representatives from 
the metering industry, utility industry, energy services industry, 
energy efficiency industry, energy efficiency advocacy organizations, 
national laboratories, and universities, and Federal facility energy 
managers) shall establish guidelines for agencies to carry out 
paragraph (1).
    ``(B) The guidelines shall--
            ``(i) take into consideration--
                    ``(I) the cost of metering and submetering and the 
                reduced cost of operation and maintenance expected to 
                result from metering and submetering;
                    ``(II) the extent to which metering and submetering 
                are expected to result in increased potential for 
                energy management, increased potential for energy 
                savings and energy efficiency improvement, and cost and 
                energy savings because of 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 and submetered based on cost-
        effectiveness and a schedule of 1 or more dates, not later than 
        1 year after the date of issuance of the guidelines, on which 
        paragraph (1) takes effect; and
            ``(iv) establish exclusions from the requirements of 
        paragraph (1) based on the de minimis quantity of energy use of 
        a Federal building, industrial process, or structure.
    ``(3) Not later than 180 days after the date on which guidelines 
are established under paragraph (2), in a report submitted by an agency 
under section 548(a), the agency shall submit to the Secretary a plan 
describing the manner in which the agency will implement paragraph (1), 
including--
            ``(A) the manner in which the agency will designate 
        personnel primarily responsible for carrying out that 
        implementation; and
            ``(B) demonstration by the agency, complete with 
        documentation, of any finding that the use of advanced meters 
        or advanced metering devices described in paragraph (1) is 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(a)) is amended by inserting after section 551 the following:

``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) The term `Energy Star product' means a product that 
        is rated for energy efficiency under an Energy Star program.
            ``(2) The term `Energy Star program' means the program 
        established by section 324A of the Energy Policy and 
        Conservation Act.
            ``(3) The term `executive agency' has the meaning given the 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(4) The term `FEMP designated product' means a product 
        that is designated under the Federal Energy Management Program 
        of the Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
    ``(b) Procurement of Energy Efficient Products.--(1) Except as 
provided in paragraph (2), to meet the requirements of an executive 
agency for an energy consuming product, the head of the executive 
agency shall procure--
            ``(A) an Energy Star product; or
            ``(B) a FEMP designated product.
    ``(2) The head of an executive agency shall not be required to 
comply with paragraph (1) if the head of the executive agency specifies 
in writing that--
            ``(A) taking into account energy cost savings, an Energy 
        Star product or FEMP designated product is not cost-effective 
        over the life of the product; or
            ``(B) no Energy Star product or FEMP designated product is 
        reasonably available that meets the functional requirements of 
        the executive agency.
    ``(3) The head of an executive agency shall incorporate criteria 
for energy efficiency that are consistent with the criteria used for 
rating Energy Star products and FEMP designated products into--
            ``(A) the specifications for any procurements involving 
        energy consuming products and systems, including--
                    ``(i) guide specifications;
                    ``(ii) project specifications; and
                    ``(iii) construction, renovation, and services 
                contracts that include the provision of energy 
                consuming products and systems; and
            ``(B) the factors for the evaluation of offers received for 
        the procurement.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
(1) Any inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency shall clearly identify 
and prominently display Energy Star products and FEMP designated 
products.
    ``(2)(A) Except as provided in subparagraph (B), 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.
    ``(B) Subparagraph (A) shall not apply if an agency ordering a 
product specifies in writing that--
            ``(i) taking into account energy cost savings, no Energy 
        Star product or FEMP designated product is cost-effective for 
        the intended application over the life of the product; or
            ``(ii) no Energy Star product or FEMP designated product is 
        available to meet the functional requirements of the ordering 
        agency.
    ``(d) Specific Products.--(1) In the case of an electric motor of 1 
to 500 horsepower, an executive agency shall select only a premium 
efficient motor that meets the standard established by the Secretary 
under paragraph (2).
    ``(2) Not later than 120 days after the date of enactment of this 
subsection and after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups, the 
Secretary shall establish a standard for premium efficient motors.
    ``(3)(A) Each Federal agency is encouraged to take actions (such as 
appropriate cleaning and maintenance) to maximize the efficiency of air 
conditioning and refrigeration equipment, including the use of a system 
treatment or additive that--
            ``(i) would reduce the electricity consumed by air 
        conditioning and refrigeration equipment; and
            ``(ii) meets the criteria specified in subparagraph (B).
    ``(B) A system treatment or additive referred to in subparagraph 
(A) shall be--
            ``(i) determined by the Secretary to be effective in 
        increasing the efficiency of air conditioning and refrigeration 
        equipment without having an adverse impact on--
                    ``(I) air conditioning and refrigeration 
                performance (including cooling capacity); or
                    ``(II) the useful life of the equipment;
            ``(ii) determined by the Administrator of the Environmental 
        Protection Agency to be environmentally safe; and
            ``(iii) shown, in tests conducted by the National Institute 
        of Standards and Technology, in accordance with Department of 
        Energy test procedures, to increase the seasonal energy 
        efficiency ratio (SEER) or energy efficiency ratio (EER) 
        without having any adverse impact on the system, system 
        components, the refrigerant or lubricant, or other materials in 
        the system.
    ``(4) The results of the tests described in paragraph (3)(B)(iii) 
shall be published in the Federal Register for public review and 
comment.
    ``(5) For purposes of this subsection, a hardware device or primary 
refrigerant shall not be considered an additive.
    ``(e) Regulations.--Not later than 180 days after the date of 
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 (as amended by section 101(b)) is 
amended by inserting after the item relating to section 551 the 
following:

``Sec. 552. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Permanent 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 1 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. 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. 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;
                    ``(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.''.

            Subtitle B--Energy Assistance and State Programs

SEC. 121. WEATHERIZATION ASSISTANCE.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended by striking ``for fiscal years 1999 through 
2003 such sums as may be necessary'' and inserting ``$325,000,000 for 
fiscal year 2006, $400,000,000 for fiscal year 2007, and $500,000,000 
for fiscal year 2008''.

SEC. 122. STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) is amended by adding at 
the end the following:
    ``(g)(1) The Secretary shall, at least once every 3 years, invite 
the Governor of each State to review and, if necessary, revise the 
energy conservation plan of the State submitted under subsection (b) or 
(e).
    ``(2) A review conducted under paragraph (1) should--
            ``(A) consider the energy conservation plans of other 
        States within the region; and
            ``(B) 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--
            ``(1) 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 1992; and
            ``(2) 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 fiscal years 2006 and 2007 and 
$125,000,000 for fiscal year 2008''.

SEC. 123. 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 (as added by section 131(a)).
            (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--
                    (A) the amount made available under subsection (f) 
                for the fiscal year; and
                    (B) by the ratio that--
                            (i) the population of the State in the most 
                        recent calendar year for which data are 
                        available; bears to
                            (ii) 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 such minimum amount as shall be determined by 
        the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State energy 
office under subsection (c) may be used to pay not more than 50 percent 
of the cost of establishing and carrying out a State program.
    (e) Issuance of Rebates.--
            (1) In general.--A rebate may be provided to a residential 
        consumer that meets the requirements of the State program.
            (2) Amount.--The amount of a rebate shall be determined by 
        the State energy office, taking into consideration--
                    (A) the amount of the allocation to the State 
                energy office under subsection (c);
                    (B) the amount of any Federal or State tax 
                incentive available for the purchase of the residential 
                Energy Star product; and
                    (C) the difference between--
                            (i) the cost of the residential Energy Star 
                        product; and
                            (ii) 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 is authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 124. 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 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 through--
            (1) 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--
                    (A) the most recent version of the International 
                Energy Conservation Code; or
                    (B) a similar State code intended to achieve 
                substantially equivalent efficiency levels; or
            (2) renovation of existing public buildings to achieve 
        reductions in energy use of at least 30 percent as compared to 
        the baseline energy use in the buildings before renovation, 
        assuming a 3-year, weather-normalized average for calculating 
        the baseline.
    (b) Administration.--State energy offices receiving grants under 
this section shall--
            (1) maintain any records and evidence of compliance that 
        the Secretary may require; and
            (2) to encourage planning, financing, and design of energy 
        efficient public buildings by units of local government--
                    (A) develop and distribute information and 
                materials; and
                    (B) conduct programs to provide technical services 
                and assistance.
    (c) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary to carry out this section $30,000,000 for each of 
        fiscal years 2006 through 2010.
            (2) Administrative expenses.--Not more than 10 percent of 
        amounts made available under paragraph (1) shall be used for 
        administrative expenses.

SEC. 125. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Definition of Indian Tribe.--In this section, the term ``Indian 
tribe'' has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
    (b) Grants.--
            (1) In general.--The Secretary may provide grants, on a 
        competitive basis, to units of local government, private or 
        nonprofit community development organizations, and economic 
        development entities of Indian tribes--
                    (A) to improve energy efficiency;
                    (B) to identify and develop alternative, renewable, 
                and distributed energy supplies; and
                    (C) to increase energy conservation in low-income 
                rural and urban communities.
            (2) Eligible activities.--The following activities are 
        eligible for grants under paragraph (1):
                    (A) Investments that develop alternative, 
                renewable, and distributed energy supplies.
                    (B) Energy efficiency projects and energy 
                conservation programs.
                    (C) Studies and other activities that improve 
                energy efficiency in low-income rural and urban 
                communities.
                    (D) Planning and development assistance for 
                increasing the energy efficiency of buildings and 
                facilities.
                    (E) Technical and financial assistance to units of 
                local government and private entities to develop new 
                renewable and distributed sources of power or combined 
                heat and power generation.
    (c) 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 2010.

SEC. 126. 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. 127. 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 \1/2\ 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 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.
    ``(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) There are authorized to be appropriated such sums as may be 
necessary to carry out this subsection, which shall 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.''.
    (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'.''; 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--
            ``(A) suspended ceiling fans; and
            ``(B) 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
           Ballast              nominal            Ballast
           input                lamp               efficacy
Applicati  voltage              watts              factor
 on for
 operatio
 n of
 
One        120/277              34                 2.61
 F34T12
 lamp
Two        120/277              68                 1.35
 F34T12
 lamps
Two F96    120/277              120                0.77
 T12/ES
 lamps
Two F96    120/277              190                0.42
 T12HO/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 subparagraphs (A) and (B) 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 20 deg.F 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.'';
            (4) in the first sentence of subsection (p), by striking 
        ``Any'' and inserting the following: ``Except as provided in 
        subsection (u), any''; and
            (5) by adding at the end the following:
    ``(u) Special Rulemaking Procedures.--(1) Notwithstanding any other 
provision of law, the Secretary may publish a notice of direct final 
rulemaking based on an energy conservation standard recommended by an 
interested person, if--
            ``(A) in response to an advance notice of proposed 
        rulemaking under paragraph (p), the interested person 
        (including a representative of a manufacturer of a covered 
        product, a conservation advocate, or consumer) submits a joint 
        comment recommending an energy conservation standard; and
            ``(B) the Secretary determines that the energy conservation 
        standard complies with the substantive provisions of this Act 
        that apply to the type (or class) of covered products to which 
        the rule may apply.
    ``(2) The Secretary shall publish a notice of direct final 
rulemaking under paragraph (1) with a notice of proposed rulemaking 
incorporating by reference the regulatory language of the direct final 
rule that provides for an effective date not earlier than 90 days after 
the date of publication.
    ``(3) The Secretary may withdraw a direct final rule published 
under paragraph (2) before the effective date of the rule if an 
interested person files a significant adverse comment in response to 
the related notice of proposed rulemaking.
    ``(v) 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.
    ``(w) Suspended Ceiling Fans and Refrigerated Beverage Vending 
Machines.--(1) Not later than 4 years after the date of enactment of 
this subsection, the Secretary shall prescribe, by rule, energy 
conservation standards for--
            ``(A) suspended ceiling fans; and
            ``(B) refrigerated bottled or canned beverage vending 
        machines.
    ``(2) In establishing energy conservation standards under this 
subsection, the Secretary shall use the criteria and procedures 
prescribed under subsections (o) and (p).
    ``(3) 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.
    ``(x) 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.
    ``(y) 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.
    ``(z) 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).
    ``(aa) 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.
    ``(bb) 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.
    ``(cc) 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.
    ``(dd) 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.
    ``(ee) 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.
    ``(ff) Mercury vapor lamp ballasts.--Mercury vapor lamp ballasts 
shall not be manufactured or imported after January 1, 2008.
    ``(gg) Application Date.--Section 327 applies--
            ``(1) to products for which energy conservation standards 
        are to be established under subsection (l), (u), (v), or (w) 
        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), 
        (v), or (w) for the product takes effect; and
            ``(2) to products for which energy conservation standards 
        are established under subsections (x) 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 (x) 
        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 1 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 1 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 1 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 1 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 
refrigerators-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 ( 2 degrees F) for refrigerator compartments and 0 degrees F ( 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 
subsection 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 1 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 subsection 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. EXPEDITED RULEMAKING.

    (a) Administrative Procedure.--The first sentence of section 325(p) 
of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) is 
amended by striking ``Any'' and inserting ``Except as provided in 
subsection (u), any''.
    (b) Administrative Procedure and Judicial Review.--The first 
sentence of section 336(b)(2) of the Energy Policy and Conservation Act 
(42 U.S.C. 6306(b)(2)) is amended by striking ``such chapter.'' and 
inserting ``that chapter, except, notwithstanding section 706(2)(D) of 
title 5, United States Code, no direct final rule prescribed or 
withdrawn under section 325(u) may be held unlawful or set aside 
because of the failure of the Secretary to observe a procedure required 
by law other than the procedures required under section 325(u).''.
    (c) Conforming Amendment.--Section 345(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6316(b)(1)) is amended by inserting 
``section 325(u),'' before ``section 326(a)''.

SEC. 138. 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).''.
    (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 
(ee) 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. 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. ENERGY EFFICIENCY RESOURCE PROGRAMS.

    (a) Electric Utility Programs.--Section 111 of the Public Utilities 
Regulatory Policy Act of 1978 (16 U.S.C. 2621) is amended by adding at 
the end the following:
    ``(e) Energy Efficiency Resource Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual electricity 
                consumption or peak demand of consumers served by an 
                electric utility by a percentage of the demand baseline 
                of the utility that is equal to not less than 0.75 
                percent of the number of years during which the program 
                is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) As soon as practicable after the date of 
                enactment of this subsection, but not later than 3 
                years after that date, each State regulatory authority 
                (with respect to each electric utility over which the 
                State has ratemaking authority) and each nonregulated 
                electric utility shall, after notice, conduct a public 
                hearing on the benefits and feasibility of implementing 
                an energy efficiency resource program.
                    ``(B) A State regulatory authority or nonregulated 
                utility shall implement an energy efficiency resource 
                program if, on the basis of a hearing under 
                subparagraph (A), the State regulatory authority or 
                nonregulated utility determines that the program 
                would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to implement.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each electric utility over 
                        which the State has ratemaking authority to 
                        implement an energy efficiency resource 
                        program; and
                            ``(ii) allow such a utility to recover any 
                        expenditures incurred by the utility in 
                        implementing the energy efficiency resource 
                        program.
                    ``(B) Nonregulated electric utilities.--If a 
                nonregulated electric utility makes a determination 
                under paragraph (2)(B), the utility shall implement an 
                energy efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;,
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or any nonregulated electric utility 
        operating in the State) that demonstrates to the Secretary that 
        an energy efficiency resource program is in effect in the 
        State.''.
    (b) Gas Utilities.--Section 303 of the Public Utilities Regulatory 
Policy Act of 1978 (15 U.S.C. 3203) is amended by adding at the end the 
following:
    ``(e) Energy efficiency resource programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual gas consumption or 
                peak demand of consumers served by a gas utility by a 
                percentage of the demand baseline of the utility that 
                is equal to not less than 0.75 percent of the number of 
                years during which the program is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) As soon as practicable after the date of 
                enactment of this subsection, but not later than 3 
                years after that date, each State regulatory authority 
                (with respect to each gas utility over which the State 
                has ratemaking authority) and each nonregulated gas 
                utility shall, after notice, conduct a public hearing 
                on the benefits and feasibility of implementing an 
                energy efficiency resource program.
                    ``(B) A State regulatory authority or nonregulated 
                utility shall implement an energy efficiency resource 
                program if, on the basis of a hearing under 
                subparagraph (A), the State regulatory authority or 
                nonregulated utility determines that the program 
                would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to implement.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each gas utility over which 
                        the State has ratemaking authority to implement 
                        an energy efficiency resource program; and
                            ``(ii) allow such a utility to recover any 
                        expenditures incurred by the utility in 
                        implementing the energy efficiency resource 
                        program.
                    ``(B) Nonregulated gas utilities.--If a 
                nonregulated gas utility makes a determination under 
                paragraph (2)(B), the utility shall implement an energy 
                efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;,
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or any nonregulated gas utility operating 
        in the State) that demonstrates to the Secretary that an energy 
        efficiency resource program is in effect in the State.''.

SEC. 142. FUEL EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) In General.--The Secretary and the Administrator of the 
National Aeronautics and Space Administration shall enter into a 
cooperative agreement to carry out a multi-year engine development 
program to advance technologies to enable more fuel efficient, turbine-
based propulsion and power systems for aeronautical and industrial 
applications.
    (b) Performance Objective.--The fuel efficiency performance 
objective for the program shall be to achieve a fuel efficiency 
improvement of more than 10 percent by exploring--
            (1) advanced concepts, alternate propulsion, and power 
        configurations, including hybrid fuel cell powered systems; and
            (2) the use of alternate fuel in conventional or 
        nonconventional turbine-based systems.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $60,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 143. MOTOR VEHICLE TIRES SUPPORTING MAXIMUM FUEL EFFICIENCY.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
            (1) in subsection (b), by inserting after the first 
        sentence the following: ``The grading system shall include 
        standards for rating the fuel efficiency of tires designed for 
        use on passenger cars and light trucks.''; and
            (2) by adding at the end the following:
    ``(d) National Tire Fuel Efficiency Program.--(1) The Secretary 
shall develop and carry out a national tire fuel efficiency program for 
tires designed for use on passenger cars and light trucks.
    ``(2) The program shall include the following:
            ``(A) Policies and procedures for testing and labeling 
        tires for fuel economy to enable tire buyers to make informed 
        purchasing decisions about the fuel economy of tires.
            ``(B) Policies and procedures to promote the purchase of 
        energy-efficient replacement tires, including purchase 
        incentives, website listings on the Internet, printed fuel 
        economy guide booklets, and mandatory requirements for tire 
        retailers to provide tire buyers with fuel-efficiency 
        information on tires.
            ``(C) Minimum fuel economy standards for tires, promulgated 
        by the Secretary.
    ``(3) The minimum fuel economy standards for tires shall--
            ``(A) ensure that the average fuel economy of replacement 
        tires is equal to or better than the average fuel economy of 
        tires sold as original equipment;
            ``(B) secure the maximum technically feasible and cost-
        effective fuel savings;
            ``(C) not adversely affect tire safety;
            ``(D) not adversely affect the average tire life of 
        replacement tires;
            ``(E) incorporate the results from--
                    ``(i) laboratory testing; and
                    ``(ii) to the extent appropriate and available, on-
                road fleet testing programs conducted by the 
                manufacturers; and
            ``(F) not adversely affect efforts to manage scrap tires.
    ``(4) The policies, procedures, and standards developed under 
paragraph (2) shall apply to all types and models of tires that are 
covered by the uniform tire quality grading standards under section 
575.104 of title 49, Code of Federal Regulations (or any successor 
regulation).
    ``(5) Not less often than every three years, the Secretary shall 
review the minimum fuel economy standards in effect for tires under 
this subsection and revise the standards as necessary to ensure 
compliance with requirements under paragraph (3). The Secretary may 
not, however, reduce the average fuel economy standards applicable to 
replacement tires.
    ``(6) Nothing in this chapter shall be construed to preempt any 
provision of State law relating to higher fuel economy standards 
applicable to replacement tires designed for use on passenger cars and 
light trucks.
    ``(7) Nothing in this chapter shall apply to--
            ``(A) a tire or group of tires with the same SKU, plant, 
        and year, for which the volume of tires produced or imported is 
        less than 15,000 annually;
            ``(B) a deep tread, winter-type snow tire, space-saver 
        tire, or temporary use spare tire;
            ``(C) a tire with a normal rim diameter of 12 inches or 
        less;
            ``(D) a motorcycle tire; or
            ``(E) a tire manufactured specifically for use in an off-
        road motorized recreational vehicle.
    ``(8) In this subsection, the term `fuel economy', with respect to 
tires, means the extent to which the tires contribute to the fuel 
economy of the motor vehicles on which the tires are mounted.
    (b) Conforming Amendment.--Section 30103(b) of title 49, United 
States Code, is amended in paragraph (1) by striking ``When'' and 
inserting ``Except as provided in section 30123(d) of this title, 
when''.
    (c) Time for Implementation.--The Secretary of Transportation shall 
ensure that the national tire fuel efficiency program required under 
subsection (d) of section 30123 of title 49, United States Code (as 
added by subsection (a)(2)), is administered so as to apply the 
policies, procedures, and standards developed under paragraph (2) of 
such subsection (d) beginning not later than March 31, 2008.

               Subtitle D--Measures to Conserve Petroleum

SEC. 151. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.

    (a) Report.--
            (1) In general.--Not later than February 1, 2006, and 
        annually thereafter, the President shall submit to Congress a 
        report, based on the most recent edition of the Annual Energy 
        Outlook published by the Energy Information Administration, 
        assessing the progress made by the United States toward the 
        goal of reducing dependence on imported petroleum sources by 
        2015.
            (2) Contents.--The report under paragraph (1) shall--
                    (A) include a description of the implementation, 
                during the previous fiscal year, of provisions under 
                this Act relating to domestic crude petroleum 
                production;
                    (B) assess the effectiveness of those provisions in 
                meeting the goal described in paragraph (1); and
                    (C) describe the progress in developing and 
                implementing measures under subsection (b).
    (b) Measures To Reduce Import Dependence Through Increased Domestic 
Petroleum Conservation.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the President shall develop and 
        implement measures to conserve petroleum in end-uses throughout 
        the economy of the United States sufficient to reduce total 
        demand for petroleum in the United States by 1,000,000 barrels 
        per day from the amount projected for calendar year 2015 in the 
        reference case contained in the report of the Energy 
        Information Administration entitled ``Annual Energy Outlook 
        2005''.
            (2) Contents.--The measures under paragraph (1) shall be 
        designed to ensure continued reliable and affordable energy for 
        consumers.
            (3) Implementation.--The measures under paragraph (1) shall 
        be implemented under existing authorities of appropriate 
        Federal executive agencies identified by the President.

                Subtitle E--Energy Efficiency in Housing

SEC. 161. 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'' and 
                inserting a semicolon;
                    (B) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(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 treatment'' and inserting the 
                following:
                            ``(i) In general.--The treatment''; and
                    (B) by adding at the end the following:
                            ``(ii) Third party contracts.--Contracts 
                        described in clause (i) may include contracts 
                        for--
                                    ``(I) equipment conversions to less 
                                costly utility sources;
                                    ``(II) projects with resident-paid 
                                utilities; and
                                    ``(III) 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--
                                    ``(I) windows;
                                    ``(II) heating system replacements;
                                    ``(III) wall insulation;
                                    ``(IV) site-based generation; and
                                    ``(V) advanced energy savings 
                                technologies, including renewable 
                                energy generation and other such 
                                retrofits.''.

SEC. 162. 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 552 of the 
National Energy Conservation Policy Act (42 U.S.C. 8251 et seq.) (as 
amended by section 104) unless the purchase of energy-efficient 
appliances is not cost-effective to the agency.

SEC. 163. 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 
                        enactment of the Energy Policy Act of 1992'' 
                        and inserting ``September 30, 2006'';
                            (ii) in subparagraph (A), by striking ``; 
                        and'' and inserting a semicolon;
                            (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, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), where 
                such standards are determined to be cost effective by 
                the Secretary of Housing and Urban Development.''; and
                    (B) in paragraph (2), in the first sentence, by 
                inserting ``, and, with respect to rehabilitation and 
                new construction of public and assisted housing funded 
                by HOPE VI revitalization grants, established under 
                section 24 of the United States Housing Act of 1937 (42 
                U.S.C. 1437v), the 2003 International Energy 
                Conservation Code'' after ``Standard 90.1-1989')'';
            (2) in subsection (b)--
                    (A) by striking ``within 1 year after the date of 
                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, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
                International Energy Conservation Code'' after 
                ``Standard 90.1-1989''; 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, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
                International Energy Conservation Code'' after 
                ``Standard 90.1-1989''.

SEC. 164. ENERGY STRATEGY FOR THE DEPARTMENT OF HOUSING AND URBAN 
              DEVELOPMENT.

    (a) Development of Strategy.--The Secretary of Housing and Urban 
Development shall develop and implement an integrated energy strategy 
to reduce utility expenses through cost-effective energy conservation 
and efficiency measures and energy efficient design and construction of 
public and assisted housing.
    (b) Contents of Strategy.--The energy strategy required under 
subsection (a) shall include the development of energy reduction goals 
and incentives for public housing agencies.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary of Housing and 
Urban Development shall submit to Congress a report describing--
            (1) the energy strategy required under subsection (a);
            (2) the actions taken by the Department of Housing and 
        Urban Development to monitor the energy usage of public housing 
        agencies; and
            (3) the progress, if any, in implementing the energy 
        strategy required under subsection (a).

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessments.--Not later than 180 days after the date 
of enactment of this Act and each year thereafter, the Secretary 
shall--
            (1) review the available assessments of renewable energy 
        resources within the United States, including solar, wind, 
        biomass, ocean (tidal, wave, current, and thermal), geothermal, 
        and hydroelectric energy resources; and
            (2) undertake new assessments as necessary, taking into 
        account changes in market conditions, available technologies, 
        and other relevant factors.
    (b) Reports.--
            (1) In general.--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 most recent assessment 
        under subsection (a).
            (2) Contents.--The report shall contain--
                    (A) a detailed inventory describing the available 
                quantity and characteristics of the renewable energy 
                resources; and
                    (B) such other information as the Secretary 
                determines would be useful in developing the renewable 
                energy resources, including--
                            (i) descriptions of surrounding terrain, 
                        population and load centers, nearby energy 
                        infrastructure, and the location of energy and 
                        water resources;
                            (ii) available estimates of the costs 
                        needed to develop each resource;
                            (iii) an identification of any barriers to 
                        providing adequate transmission for remote 
                        sources of renewable energy resources to 
                        current and emerging markets;
                            (iv) recommendations for removing or 
                        addressing those barriers; and
                            (v) recommendations for providing access to 
                        the electrical grid that do not unfairly 
                        disadvantage renewable or other energy 
                        producers.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 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 (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,'' 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,'' 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) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any solid, 
        nonhazardous, cellulosic material that is derived from--
                    (A) any of the following forest-related resources: 
                mill residue, precommercial thinning, slash, brush, or 
                nonmerchantable material;
                    (B) a solid wood waste material--
                            (i) including a waste pallet, crate, 
                        dunnage, manufacturing and construction wood 
                        waste (other than pressure-treated, chemically-
                        treated, or painted wood waste), and landscape 
                        or right-of-way tree trimming; but
                            (ii) not including municipal solid waste 
                        (garbage), gas derived from the biodegradation 
                        of solid waste, or paper that is commonly 
                        recycled;
                    (C) agriculture waste, including an orchard tree 
                crop, vineyard, grain, legume, sugar, and other crop 
                byproduct or residue, and a livestock waste nutrient; 
                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, ocean 
        (tidal, wave, current, and thermal), landfill gas, geothermal, 
        municipal solid waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new capacity 
        at an existing hydroelectric project.
    (b) Requirement.--The President, acting through the Secretary, 
shall seek to ensure that, to the extent economically feasible and 
technically practicable, of the total quantity 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 each of fiscal years 2007 
        through 2009.
            (2) Not less than 5 percent in each of fiscal years 2010 
        through 2012.
            (3) Not less than 7.5 percent in fiscal year 2013 and each 
        fiscal year thereafter.
    (c) Calculation.--For purposes of determining compliance with the 
requirement of this section, the quantity of renewable energy shall be 
doubled if--
            (1) the renewable energy is produced and used onsite at a 
        Federal facility;
            (2) the renewable energy is produced on Federal land and 
        used at a Federal facility; or
            (3) the renewable energy is produced on Indian land (as 
        defined in section 2601 of the Energy Policy Act of 1992) and 
        used at a Federal facility.
    (d) Report.--Not later than April 15, 2007, and every 2 years 
thereafter, the Secretary shall provide to Congress a report on the 
progress of the Federal Government in meeting the goals established by 
this section.

                       Subtitle B--Reliable Fuels

SEC. 211. RENEWABLE CONTENT OF GASOLINE.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (r); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, sugarcane, sugar 
                                beets, sugar components, tobacco, 
                                potatoes, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes--
                                    ``(I) cellulosic biomass ethanol; 
                                and
                                    ``(II) biodiesel (as defined in 
                                section 312(f) of the Energy Policy Act 
                                of 1992 (42 U.S.C. 13220(f))).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which the average aggregate daily 
                crude oil throughput for a calendar year (as determined 
                by dividing the aggregate throughput for the calendar 
                year by the number of days in the calendar year) does 
                not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) Regulations.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this paragraph, 
                        the Administrator shall promulgate regulations 
                        to ensure that gasoline sold or introduced into 
                        commerce in the United States (except in 
                        noncontiguous States or territories), on an 
                        annual average basis, contains the applicable 
                        volume of renewable fuel determined in 
                        accordance with subparagraph (B).
                            ``(ii) Noncontiguous state opt-in.--
                                    ``(I) In general.--On the petition 
                                of a noncontiguous State or territory, 
                                the Administrator may allow the 
                                renewable fuel program established 
                                under this subsection to apply in the 
                                noncontiguous State or territory at the 
                                same time or any time after the 
                                Administrator promulgates regulations 
                                under this subparagraph.
                                    ``(II) Other actions.--In carrying 
                                out this clause, the Administrator 
                                may--
                                            ``(aa) issue or revise 
                                        regulations under this 
                                        paragraph;
                                            ``(bb) establish applicable 
                                        percentages under paragraph 
                                        (3);
                                            ``(cc) provide for the 
                                        generation of credits under 
                                        paragraph (5); and
                                            ``(dd) take such other 
                                        actions as are necessary to 
                                        allow for the application of 
                                        the renewable fuels program in 
                                        a noncontiguous State or 
                                        territory.
                            ``(iii) Provisions of regulations.--
                        Regardless of the date of promulgation, the 
                        regulations promulgated under clause (i)--
                                    ``(I) shall contain compliance 
                                provisions applicable to refineries, 
                                blenders, distributors, and importers, 
                                as appropriate, to ensure that the 
                                requirements of this paragraph are met; 
                                but
                                    ``(II) shall not--
                                            ``(aa) restrict geographic 
                                        areas in which renewable fuel 
                                        may be used; or
                                            ``(bb) impose any per-
                                        gallon obligation for the use 
                                        of renewable fuel.
                            ``(iv) Requirement in case of failure to 
                        promulgate regulations.--If the Administrator 
                        does not promulgate regulations under clause 
                        (i), the percentage of renewable fuel in 
                        gasoline sold or dispensed to consumers in the 
                        United States, on a volume basis, shall be 3.2 
                        percent for calendar year 2006.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2006 through 2012.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2006 through 2012 shall be determined in 
                        accordance with the following table:

                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
    2006..........................................                  4.0
    2007..........................................                  4.7
    2008..........................................                  5.4
    2009..........................................                  6.1
    2010..........................................                  6.8
    2011..........................................                  7.4
    2012..........................................                 8.0.
                            ``(ii) Calendar year 2013 and thereafter.--
                        Subject to clauses (iii) and (iv), for the 
                        purposes of subparagraph (A), the applicable 
                        volume for calendar year 2013 and each calendar 
                        year thereafter shall be determined by the 
                        Administrator, in coordination with the 
                        Secretary of Agriculture and the Secretary of 
                        Energy, based on a review of the implementation 
                        of the program during calendar years 2006 
                        through 2012, including a review of--
                                    ``(I) the impact of the use of 
                                renewable fuels on the environment, air 
                                quality, energy security, job creation, 
                                and rural economic development; and
                                    ``(II) the expected annual rate of 
                                future production of renewable fuels, 
                                including cellulosic ethanol.
                            ``(iii) Minimum quantity derived from 
                        cellulosic biomass.--For calendar year 2013 and 
                        each calendar year thereafter--
                                    ``(I) the applicable volume 
                                referred to in clause (ii) shall 
                                contain a minimum of 250,000,000 
                                gallons that are derived from 
                                cellulosic biomass; and
                                    ``(II) the 2.5-to-1 ratio referred 
                                to in paragraph (4) shall not apply.
                            ``(iv) Minimum applicable volume.--For the 
                        purpose of subparagraph (A), the applicable 
                        volume for calendar year 2013 and each calendar 
                        year thereafter shall be not less than the 
                        product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 8,000,000,000 
                                        gallons of renewable fuel; 
                                        bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of Gasoline 
                sales.--Not later than October 31 of each of calendar 
                years 2005 through 2011, the Administrator of the 
                Energy Information Administration shall provide to the 
                Administrator of the Environmental Protection Agency an 
                estimate, with respect to the following calendar year, 
                of the volumes of gasoline projected to be sold or 
                introduced into commerce in the United States.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each of calendar years 2005 through 2012, 
                        based on the estimate provided under 
                        subparagraph (A), the Administrator of the 
                        Environmental Protection Agency shall determine 
                        and publish in the Federal Register, with 
                        respect to the following calendar year, the 
                        renewable fuel obligation that ensures that the 
                        requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The renewable 
                        fuel obligation determined for a calendar year 
                        under clause (i) shall--
                                    ``(I) be applicable to refineries, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of gasoline sold or 
                                introduced into commerce in the United 
                                States; and
                                    ``(III) subject to subparagraph 
                                (C)(i), consist of a single applicable 
                                percentage that applies to all 
                                categories of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the applicable 
                percentage for a calendar year, the Administrator shall 
                make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations on any person specified 
                        in subparagraph (B)(ii)(I); and
                            ``(ii) to account for the use of renewable 
                        fuel during the previous calendar year by small 
                        refineries that are exempt under paragraph (9).
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 2.5 gallons of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(A) shall provide--
                            ``(i) for the generation of an appropriate 
                        amount of credits by any person that refines, 
                        blends, or imports gasoline that contains a 
                        quantity of renewable fuel that is greater than 
                        the quantity required under paragraph (2);
                            ``(ii) for the generation of an appropriate 
                        amount of credits for biodiesel; and
                            ``(iii) for the generation of credits by 
                        small refineries in accordance with paragraph 
                        (9)(C).
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Duration of credits.--A credit generated 
                under this paragraph shall be valid to show compliance 
                for the calendar year in which the credit was 
                generated.
                    ``(D) Inability to generate or purchase sufficient 
                credits.--The regulations promulgated under paragraph 
                (2)(A) shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements of paragraph (2) to 
                carry forward a renewable fuel deficit on condition 
                that the person, in the calendar year following the 
                year in which the renewable fuel deficit is created--
                            ``(i) achieves compliance with the 
                        renewable fuel requirement under paragraph (2); 
                        and
                            ``(ii) generates or purchases additional 
                        renewable fuel credits to offset the renewable 
                        fuel deficit of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2006 
                through 2012, the Administrator of the Energy 
                Information Administration shall conduct a study of 
                renewable fuel blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuel.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator of the Environmental Protection Agency 
                shall promulgate regulations to ensure that 35 percent 
                or more of the quantity of renewable fuel necessary to 
                meet the requirements of paragraph (2) is used during 
                each of the 2 periods specified in subparagraph (D) of 
                each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuel necessary to meet the 
                        requirements of paragraph (2) has been used 
                        during 1 of the 2 periods specified in 
                        subparagraph (D) of the calendar year; and
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years.
                    ``(D) Periods.--The 2 periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusion.--Renewable fuel blended or 
                consumed in calendar year 2006 in a State that has 
                received a waiver under section 209(b) shall not be 
                included in the study under subparagraph (A).
                    ``(F) State exemption from seasonality 
                requirements.--Notwithstanding any other provision of 
                law, the seasonality requirement relating to renewable 
                fuel use established by this paragraph shall not apply 
                to any State that has received a waiver under section 
                209(b).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirements of 
                paragraph (2) in whole or in part on petition by 1 or 
                more States by reducing the national quantity of 
                renewable fuel required under paragraph (2)--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would severely harm the economy 
                        or environment of a State, a region, or the 
                        United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply.
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirements of 
                paragraph (2) within 90 days after the date on which 
                the petition is received by the Administrator.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Study and waiver for initial year of program.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this paragraph, the Secretary 
                of Energy shall conduct for the Administrator a study 
                assessing whether the renewable fuel requirement under 
                paragraph (2) will likely result in significant adverse 
                impacts on consumers in 2006, on a national, regional, 
                or State basis.
                    ``(B) Required evaluations.--The study shall 
                evaluate renewable fuel--
                            ``(i) supplies and prices;
                            ``(ii) blendstock supplies; and
                            ``(iii) supply and distribution system 
                        capabilities.
                    ``(C) Recommendations by the Secretary.--Based on 
                the results of the study, the Secretary of Energy shall 
                make specific recommendations to the Administrator 
                concerning waiver of the requirements of paragraph (2), 
                in whole or in part, to prevent any adverse impacts 
                described in subparagraph (A).
                    ``(D) Waiver.--
                            ``(i) In general.--Not later than 270 days 
                        after the date of enactment of this paragraph, 
                        the Administrator shall, if and to the extent 
                        recommended by the Secretary of Energy under 
                        subparagraph (C), waive, in whole or in part, 
                        the renewable fuel requirement under paragraph 
                        (2) by reducing the national quantity of 
                        renewable fuel required under paragraph (2) in 
                        calendar year 2006.
                            ``(ii) No effect on waiver authority.--
                        Clause (i) does not limit the authority of the 
                        Administrator to waive the requirements of 
                        paragraph (2) in whole, or in part, under 
                        paragraph (7).
            ``(9) Small refineries.--
                    ``(A) Temporary exemption.--
                            ``(i) In general.--The requirements of 
                        paragraph (2) shall not apply to small 
                        refineries until calendar year 2011.
                            ``(ii) Extension of exemption.--
                                    ``(I) Study by Secretary of 
                                Energy.--Not later than December 31, 
                                2008, the Secretary of Energy shall 
                                conduct for the Administrator a study 
                                to determine whether compliance with 
                                the requirements of paragraph (2) would 
                                impose a disproportionate economic 
                                hardship on small refineries.
                                    ``(II) Extension of exemption.--In 
                                the case of a small refinery that the 
                                Secretary of Energy determines under 
                                subclause (I) would be subject to a 
                                disproportionate economic hardship if 
                                required to comply with paragraph (2), 
                                the Administrator shall extend the 
                                exemption under clause (i) for the 
                                small refinery for a period of not less 
                                than 2 additional years.
                    ``(B) Petitions based on disproportionate economic 
                hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        under subparagraph (A) for the reason of 
                        disproportionate economic hardship.
                            ``(ii) Evaluation of petitions.--In 
                        evaluating a petition under clause (i), the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study under subparagraph 
                        (A)(ii) and other economic factors.
                            ``(iii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the date 
                        of receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that the small refinery waives the 
                exemption under subparagraph (A), the regulations 
                promulgated under paragraph (2)(A) shall provide for 
                the generation of credits by the small refinery under 
                paragraph (5) beginning in the calendar year following 
                the date of notification.
                    ``(D) Opt-in for small refineries.--A small 
                refinery shall be subject to the requirements of 
                paragraph (2) if the small refinery notifies the 
                Administrator that the small refinery waives the 
                exemption under subparagraph (A).
            ``(10) Ethanol market concentration analysis.--
                    ``(A) Analysis.--
                            ``(i) In general.--Not later than 180 days 
                        after the date of enactment of this paragraph, 
                        and annually thereafter, the Federal Trade 
                        Commission shall perform a market concentration 
                        analysis of the ethanol production industry 
                        using the Herfindahl-Hirschman Index to 
                        determine whether there is sufficient 
                        competition among industry participants to 
                        avoid price-setting and other anticompetitive 
                        behavior.
                            ``(ii) Scoring.--For the purpose of scoring 
                        under clause (i) using the Herfindahl-Hirschman 
                        Index, all marketing arrangements among 
                        industry participants shall be considered.
                    ``(B) Report.--Not later than December 1, 2005, and 
                annually thereafter, the Federal Trade Commission shall 
                submit to Congress and the Administrator a report on 
                the results of the market concentration analysis 
                performed under subparagraph (A)(i).
    ``(p) Renewable Fuel Safe Harbor.--
            ``(1) In general.--
                    ``(A) Safe harbor.--Notwithstanding any other 
                provision of Federal or State law, no renewable fuel 
                (as defined in subsection (o)(1)) used or intended to 
                be used as a motor vehicle fuel, nor any motor vehicle 
                fuel containing renewable fuel, shall be deemed to be 
                defective in design or manufacture by reason of the 
                fact that the fuel is, or contains, renewable fuel, 
                if--
                            ``(i) the fuel does not violate a control 
                        or prohibition imposed by the Administrator 
                        under this section; and
                            ``(ii) the manufacturer of the fuel is in 
                        compliance with all requests for information 
                        under subsection (b).
                    ``(B) Safe harbor not applicable.--In any case in 
                which subparagraph (A) does not apply to a quantity of 
                fuel, the existence of a design defect or manufacturing 
                defect with respect to the fuel shall be determined 
                under otherwise applicable law.
            ``(2) Exception.--This subsection does not apply to ethers.
            ``(3) Applicability.--This subsection applies with respect 
        to all claims filed on or after the date of enactment of this 
        subsection.''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n), or (o)''; 
                and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Exclusion from ethanol waiver.--
                    ``(A) Promulgation of regulations.--Upon 
                notification, accompanied by supporting documentation, 
                from the Governor of a State that the Reid vapor 
                pressure limitation established by paragraph (4) will 
                increase emissions that contribute to air pollution in 
                any area in the State, the Administrator shall, by 
                regulation, apply, in lieu of the Reid vapor pressure 
                limitation established by paragraph (4), the Reid vapor 
                pressure limitation established by paragraph (1) to all 
                fuel blends containing gasoline and 10 percent 
                denatured anhydrous ethanol that are sold, offered for 
                sale, dispensed, supplied, offered for supply, 
                transported, or introduced into commerce in the area 
                during the high ozone season.
                    ``(B) Deadline for promulgation.--The Administrator 
                shall promulgate regulations under subparagraph (A) not 
                later than 90 days after the date of receipt of a 
                notification from a Governor under that subparagraph.
                    ``(C) Effective date.--
                            ``(i) In general.--With respect to an area 
                        in a State for which the Governor submits a 
                        notification under subparagraph (A), the 
                        regulations under that subparagraph shall take 
                        effect on the later of--
                                    ``(I) the first day of the first 
                                high ozone season for the area that 
                                begins after the date of receipt of the 
                                notification; or
                                    ``(II) 1 year after the date of 
                                receipt of the notification.
                            ``(ii) Extension of effective date Based on 
                        determination of insufficient supply.--
                                    ``(I) In general.--If, after 
                                receipt of a notification with respect 
                                to an area from a Governor of a State 
                                under subparagraph (A), the 
                                Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person and after 
                                consultation with the Secretary of 
                                Energy, that the promulgation of 
                                regulations described in subparagraph 
                                (A) would result in an insufficient 
                                supply of gasoline in the State, the 
                                Administrator, by regulation--
                                            ``(aa) shall extend the 
                                        effective date of the 
                                        regulations under clause (i) 
                                        with respect to the area for 
                                        not more than 1 year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 212. RENEWABLE FUEL.

    (a) In General.--The Clean Air Act is amended by inserting after 
section 211 (42 U.S.C. 7411) the following:

``SEC. 212. RENEWABLE FUEL.

    ``(a) Definitions.--In this section:
            ``(1) Municipal solid waste.--The term `municipal solid 
        waste' has the meaning given the term `solid waste' in section 
        1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).
            ``(2) RFG State.--The term `RFG State' means a State in 
        which is located 1 or more covered areas (as defined in section 
        211(k)(10)(D)).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
    ``(b) Survey of Renewable Fuel Market.--
            ``(1) Survey and report.--Not later than December 1, 2006, 
        and annually thereafter, the Administrator shall--
                    ``(A) conduct, with respect to each conventional 
                gasoline use area and each reformulated gasoline use 
                area in each State, a survey to determine the market 
                shares of--
                            ``(i) conventional gasoline containing 
                        ethanol;
                            ``(ii) reformulated gasoline containing 
                        ethanol;
                            ``(iii) conventional gasoline containing 
                        renewable fuel; and
                            ``(iv) reformulated gasoline containing 
                        renewable fuel; and
                    ``(B) submit to Congress, and make publicly 
                available, a report on the results of the survey under 
                subparagraph (A).
            ``(2) Recordkeeping and reporting requirements.--
                    ``(A) In general.--The Administrator may require 
                any refiner, blender, or importer to keep such records 
                and make such reports as are necessary to ensure that 
                the survey conducted under paragraph (1) is accurate.
                    ``(B) Reliance on existing requirements.--To avoid 
                duplicative requirements, in carrying out subparagraph 
                (A), the Administrator shall rely, to the maximum 
                extent practicable, on reporting and recordkeeping 
                requirements in effect on the date of enactment of this 
                section.
            ``(3) Confidentiality.--Activities carried out under this 
        subsection shall be conducted in a manner designed to protect 
        confidentiality of individual responses.
    ``(c)  Cellulosic Biomass Ethanol And Municipal Solid Waste Loan 
Guarantee Program.--
            ``(1) In general.--Funds may be provided for the cost (as 
        defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 
        et seq.)) of loan guarantees issued under title XIV of the 
        Energy Policy Act of 2005 to carry out commercial demonstration 
        projects for celluosic biomass and sucrose-derived ethanol.
            ``(2) Demonstration projects.--
                    ``(A) In general.--The Secretary shall issue loan 
                guarantees under this section to carry out not more 
                than 4 projects to commercially demonstrate the 
                feasibility and viability of producing cellulosic 
                biomass ethanol or sucrose-derived ethanol, including 
                at least 1 project that uses cereal straw as a 
                feedstock and 1 project that uses municipal solid waste 
                as a feedstock.
                    ``(B) Design capacity.--Each project shall have a 
                design capacity to produce at least 30,000,000 gallons 
                of cellulosic biomass ethanol each year.
            ``(3) Applicant assurances.--An applicant for a loan 
        guarantee under this section shall provide assurances, 
        satisfactory to the Secretary, that--
                    ``(A) the project design has been validated through 
                the operation of a continuous process facility with a 
                cumulative output of at least 50,000 gallons of 
                ethanol;
                    ``(B) the project has been subject to a full 
                technical review;
                    ``(C) the project is covered by adequate project 
                performance guarantees;
                    ``(D) the project, with the loan guarantee, is 
                economically viable; and
                    ``(E) there is a reasonable assurance of repayment 
                of the guaranteed loan.
            ``(4) Limitations.--
                    ``(A) Maximum guarantee.--Except as provided in 
                subparagraph (B), a loan guarantee under this section 
                may be issued for up to 80 percent of the estimated 
                cost of a project, but may not exceed $250,000,000 for 
                a project.
                    ``(B) Additional guarantees.--
                            ``(i) In general.--The Secretary may issue 
                        additional loan guarantees for a project to 
                        cover up to 80 percent of the excess of actual 
                        project cost over estimated project cost but 
                        not to exceed 15 percent of the amount of the 
                        original guarantee.
                            ``(ii) Principal and interest.--Subject to 
                        subparagraph (A), the Secretary shall guarantee 
                        100 percent of the principal and interest of a 
                        loan made under subparagraph (A).
            ``(5) Equity contributions.--To be eligible for a loan 
        guarantee under this section, an applicant for the loan 
        guarantee shall have binding commitments from equity investors 
        to provide an initial equity contribution of at least 20 
        percent of the total project cost.
            ``(6) Insufficient amounts.--If the amount made available 
        to carry out this section is insufficient to allow the 
        Secretary to make loan guarantees for 3 projects described in 
        subsection (b), the Secretary shall issue loan guarantees for 1 
        or more qualifying projects under this section in the order in 
        which the applications for the projects are received by the 
        Secretary.
            ``(7) Approval.--An application for a loan guarantee under 
        this section shall be approved or disapproved by the Secretary 
        not later than 90 days after the application is received by the 
        Secretary.
    ``(d) Authorization of Appropriations for Resource Center.--There 
is authorized to be appropriated, for a resource center to further 
develop bioconversion technology using low-cost biomass for the 
production of ethanol at the Center for Biomass-Based Energy at the 
Mississippi State University and the Oklahoma State University, 
$4,000,000 for each of fiscal years 2005 through 2007.
    ``(e) Renewable Fuel Production Research and Development Grants.--
            ``(1) In general.--The Administrator shall provide grants 
        for the research into, and development and implementation of, 
        renewable fuel production technologies in RFG States with low 
        rates of ethanol production, including low rates of production 
        of cellulosic biomass ethanol.
            ``(2) Eligibility.--
                    ``(A) In general.--The entities eligible to receive 
                a grant under this subsection are academic institutions 
                in RFG States, and consortia made up of combinations of 
                academic institutions, industry, State government 
                agencies, or local government agencies in RFG States, 
                that have proven experience and capabilities with 
                relevant technologies.
                    ``(B) Application.--To be eligible to receive a 
                grant under this subsection, an eligible entity shall 
                submit to the Administrator an application in such 
                manner and form, and accompanied by such information, 
                as the Administrator may specify.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $25,000,000 for 
        each of fiscal years 2006 through 2010.
    ``(f) Cellulosic Biomass Ethanol Conversion Assistance.--
            ``(1) In general.--The Secretary may provide grants to 
        merchant producers of cellulosic biomass ethanol in the United 
        States to assist the producers in building eligible production 
        facilities described in paragraph (2) for the production of 
        cellulosic biomass ethanol.
            ``(2) Eligible production facilities.--A production 
        facility shall be eligible to receive a grant under this 
        subsection if the production facility--
                    ``(A) is located in the United States; and
                    ``(B) uses cellulosic biomass feedstocks derived 
                from agricultural residues or municipal solid waste.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection--
                    ``(A) $250,000,000 for fiscal year 2005; and
                    ``(B) $400,000,000 for fiscal year 2006.''.
    (b) Conforming Amendment.--The table of contents for the Clean Air 
Act (42 U.S.C. 7401 prec.) is amended by inserting after the item 
relating to section 211 the following:

``Sec. 212. Renewable fuels''.

SEC. 213. SURVEY OF RENEWABLE FUELS CONSUMPTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) Survey of Renewable Fuels Consumption.--
            ``(1) In general.--In order to improve the ability to 
        evaluate the effectiveness of the Nation's renewable fuels 
        mandate, the Administrator shall conduct and publish the 
        results of a survey of renewable fuels consumption in the motor 
        vehicle fuels market in the United States monthly, and in a 
        manner designed to protect the confidentiality of individual 
        responses.
            ``(2) Elements of survey.--In conducting the survey, the 
        Administrator shall collect information retrospectively to 
        1998, on a national basis and a regional basis, including--
                    ``(A) the quantity of renewable fuels produced;
                    ``(B) the cost of production;
                    ``(C) the cost of blending and marketing;
                    ``(D) the quantity of renewable fuels blended;
                    ``(E) the quantity of renewable fuels imported; and
                    ``(F) market price data.''.

                 Subtitle C--Federal Reformulated Fuels

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Federal Reformulated Fuels Act 
of 2005''.

SEC. 222. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of LUST Funds for Remediation of Contamination From Ether 
Fuel Additives.--Section 9003(h) of the Solid Waste Disposal Act (42 
U.S.C. 6991b(h)) is amended--
            (1) in paragraph (7)(A)--
                    (A) by striking ``paragraphs (1) and (2) of this 
                subsection'' and inserting ``paragraphs (1), (2), and 
                (12)''; and
                    (B) by inserting ``and section 9010'' before 
                ``if''; and
            (2) by adding at the end the following:
            ``(12) Remediation of contamination from ether fuel 
        additives.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under section 9013(1) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether or other ether fuel 
                additive that presents a threat to human health, 
                welfare, or the environment.
                    ``(B) Applicable authority.--Subparagraph (A) shall 
                be carried out--
                            ``(i) in accordance with paragraph (2), 
                        except that a release with respect to which a 
                        corrective action is carried out under 
                        subparagraph (A) shall not be required to be 
                        from an underground storage tank; and
                            ``(ii) in the case of a State, in 
                        accordance with a cooperative agreement entered 
                        into by the Administrator and the State under 
                        paragraph (7).''.
    (b) Release Prevention and Compliance.--Subtitle I of the Solid 
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking 
section 9010 and inserting the following:

``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9013(2) from the Leaking 
Underground Storage Tank Trust Fund may be used for conducting 
inspections, or for issuing orders or bringing actions under this 
subtitle--
            ``(1) by a State (pursuant to section 9003(h)(7)) acting 
        under--
                    ``(A) a program approved under section 9004; or
                    ``(B) State requirements regulating underground 
                storage tanks that are similar or identical to this 
                subtitle, as determined by the Administrator; and
            ``(2) by the Administrator, acting under this subtitle or a 
        State program approved under section 9004.

``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to amounts made available under section 2007(f), 
there are authorized to be appropriated from the Leaking Underground 
Storage Tank Trust Fund, notwithstanding section 9508(c)(1) of the 
Internal Revenue Code of 1986--
            ``(1) to carry out section 9003(h)(12), $200,000,000 for 
        fiscal year 2005, to remain available until expended; and
            ``(2) to carry out section 9010--
                    ``(A) $50,000,000 for fiscal year 2005; and
                    ``(B) $30,000,000 for fiscal years 2006 through 
                2010.''.
    (c) Technical Amendments.--
            (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
        prec. 6901) is amended by striking the item relating to section 
        9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''.
            (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
        U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
        inserting ``substances''.
            (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
        U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and 
        (d) of this section'' and inserting ``subsections (c) and 
        (d)''.
            (4) Section 9004(a) of the Solid Waste Disposal Act (42 
        U.S.C. 6991c(a)) is amended in the second sentence by striking 
        ``referred to'' and all that follows and inserting ``referred 
        to in subparagraph (A) or (B), or both, of section 9001(2).''.
            (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
        6991d) is amended--
                    (A) in subsection (a), by striking ``study taking'' 
                and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking ``relevent'' 
                and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting ``Environmental''.

SEC. 223. RESTRICTIONS ON THE USE OF MTBE.

    (a) Findings.--Congress finds that--
            (1) since 1979, methyl tertiary butyl ether (referred to in 
        this section as ``MTBE'') has been used nationwide at low 
        levels in gasoline to replace lead as an octane booster or 
        anti-knocking agent;
            (2) Public Law 101-549 (commonly known as the ``Clean Air 
        Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established 
        a fuel oxygenate standard under which reformulated gasoline 
        must contain at least 2 percent oxygen by weight;
            (3) at the time of the adoption of the fuel oxygenate 
        standard, Congress was aware that--
                    (A) increased use of MTBE could result from the 
                adoption of that standard; and
                    (B) the use of MTBE would likely be needed to 
                implement that standard;
            (4) Congress is aware that gasoline and its component 
        additives have leaked from storage tanks, with consequences for 
        water quality;
            (5) the fuel industry responded to the fuel oxygenate 
        standard established by Public Law 101-549 by making 
        substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing gasoline to 
                the marketplace;
            (6) when leaked or spilled into the environment, MTBE may 
        cause serious problems of drinking water quality;
            (7) in recent years, MTBE has been detected in water 
        sources throughout the United States;
            (8) MTBE can be detected by smell and taste at low 
        concentrations;
            (9) while small quantities of MTBE can render water 
        supplies unpalatable, the precise human health effects of MTBE 
        consumption at low levels are yet unknown as of the date of 
        enactment of this Act;
            (10) in the report entitled ``Achieving Clean Air and Clean 
        Water: The Report of the Blue Ribbon Panel on Oxygenates in 
        Gasoline'' and dated September 1999, Congress was urged--
                    (A) to eliminate the fuel oxygenate standard;
                    (B) to greatly reduce use of MTBE; and
                    (C) to maintain the environmental performance of 
                reformulated gasoline;
            (11) Congress has--
                    (A) reconsidered the relative value of MTBE in 
                gasoline; and
                    (B) decided to eliminate use of MTBE as a fuel 
                additive;
            (12) the timeline for elimination of use of MTBE as a fuel 
        additive must be established in a manner that achieves an 
        appropriate balance among the goals of--
                    (A) environmental protection;
                    (B) adequate energy supply; and
                    (C) reasonable fuel prices; and
            (13) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act (42 U.S.C. 
                7401 et seq.); and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from elimination of a widely-
                used fuel additive.
    (b) Purposes.--The purposes of this section are--
            (1) to eliminate use of MTBE as a fuel oxygenate; and
            (2) to provide assistance to merchant producers of MTBE in 
        making the transition from producing MTBE to producing other 
        fuel additives.
    (c) Authority for Water Quality Protection From Fuels.--Section 
211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``fuel or fuel additive or'' after 
                ``Administrator any''; and
                    (B) by striking ``air pollution which'' and 
                inserting ``air pollution, or water pollution, that'';
            (2) in paragraph (4)(B), by inserting ``or water quality 
        protection,'' after ``emission control,''; and
            (3) by adding at the end the following:
            ``(5) Restrictions on use of MTBE.--
                    ``(A) In general.--Subject to subparagraph (E), not 
                later than 4 years after the date of enactment of this 
                paragraph, the use of methyl tertiary butyl ether in 
                motor vehicle fuel in any State other than a State 
                described in subparagraph (C) is prohibited.
                    ``(B) Regulations.--The Administrator shall 
                promulgate regulations to effect the prohibition in 
                subparagraph (A).
                    ``(C) States that authorize use.--A State described 
                in this subparagraph is a State that submits to the 
                Administrator a notice that the State authorizes use of 
                methyl tertiary butyl ether in motor vehicle fuel sold 
                or used in the State.
                    ``(D) Publication of notice.--The Administrator 
                shall publish in the Federal Register each notice 
                submitted by a State under subparagraph (C).
                    ``(E) Trace quantities.--In carrying out 
                subparagraph (A), the Administrator may allow trace 
                quantities of methyl tertiary butyl ether, not to 
                exceed 0.5 percent by volume, to be present in motor 
                vehicle fuel in cases that the Administrator determines 
                to be appropriate.
            ``(6) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with the Administrator, may make 
                        grants to merchant producers of methyl tertiary 
                        butyl ether in the United States to assist the 
                        producers in the conversion of eligible 
                        production facilities described in subparagraph 
                        (C) to the production of--
                                    ``(I) iso-octane or alkylates, 
                                unless the Administrator, in 
                                consultation with the Secretary of 
                                Energy, determines that transition 
                                assistance for the production of iso-
                                octane or alkylates is inconsistent 
                                with the criteria specified in 
                                subparagraph (B); and
                                    ``(II) any other fuel additive that 
                                meets the criteria specified in 
                                subparagraph (B).
                    ``(B) Criteria.--The criteria referred to in 
                subparagraph (A) are that--
                            ``(i) use of the fuel additive is 
                        consistent with this subsection;
                            ``(ii) the Administrator has not determined 
                        that the fuel additive may reasonably be 
                        anticipated to endanger public health or the 
                        environment;
                            ``(iii) the fuel additive has been 
                        registered and tested, or is being tested, in 
                        accordance with the requirements of this 
                        section; and
                            ``(iv) the fuel additive will contribute to 
                        replacing quantities of motor vehicle fuel 
                        rendered unavailable as a result of paragraph 
                        (5).
                    ``(C) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced methyl tertiary butyl ether 
                        for consumption in nonattainment areas during 
                        the period--
                                    ``(I) beginning on the date of 
                                enactment of this paragraph; and
                                    ``(II) ending on the effective date 
                                of the prohibition on the use of methyl 
                                tertiary butyl ether under paragraph 
                                (5).
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2005 
                through 2008.''.
    (d) No Effect on Law Concerning State Authority.--The amendments 
made by subsection (c) have no effect on any law enacted or in effect 
before the date of enactment of this Act concerning the authority of 
States to limit the use of methyl tertiary butyl ether in motor vehicle 
fuel.

SEC. 224. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of subparagraph 
                        (A), by striking ``(including the oxygen 
                        content requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause (v); 
                and
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clause (iii) 
                                as clause (ii).
            (2) Applicability.--The amendments made by paragraph (1) 
        apply--
                    (A) in the case of a State that has received a 
                waiver under section 209(b) of the Clean Air Act (42 
                U.S.C. 7543(b)), beginning on the date of enactment of 
                this Act; and
                    (B) in the case of any other State, beginning 270 
                days after the date of enactment of this Act.
    (b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated Gasoline.--
                            ``(i) Definition of PADD.--In this 
                        subparagraph the term `PADD' means a Petroleum 
                        Administration for Defense District.
                            ``(ii) Regulations concerning emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall establish 
                        by regulation, for each refinery or importer 
                        (other than a refiner or importer in a State 
                        that has received a waiver under section 209(b) 
                        with respect to gasoline produced for use in 
                        that State), standards for toxic air pollutants 
                        from use of the reformulated gasoline produced 
                        or distributed by the refiner or importer that 
                        maintain the reduction of the average annual 
                        aggregate emissions of toxic air pollutants for 
                        reformulated gasoline produced or distributed 
                        by the refiner or importer during calendar 
                        years 2001 and 2002 (as determined on the basis 
                        of data collected by the Administrator with 
                        respect to the refiner or importer).
                            ``(iii) Standards applicable to specific 
                        refineries or importers.--
                                    ``(I) Applicability of standards.--
                                For any calendar year, the standards 
                                applicable to a refiner or importer 
                                under clause (ii) shall apply to the 
                                quantity of gasoline produced or 
                                distributed by the refiner or importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refiner or importer 
                                during calendar years 2001 and 2002.
                                    ``(II) Applicability of other 
                                standards.--For any calendar year, the 
                                quantity of gasoline produced or 
                                distributed by a refiner or importer 
                                that is in excess of the quantity 
                                subject to subclause (I) shall be 
                                subject to standards for emissions of 
                                toxic air pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The Administrator 
                        shall provide for the granting and use of 
                        credits for emissions of toxic air pollutants 
                        in the same manner as provided in paragraph 
                        (7).
                            ``(v) Regional protection of toxics 
                        reduction baselines.--
                                    ``(I) In general.--Not later than 
                                60 days after the date of enactment of 
                                this subparagraph, and not later than 
                                April 1 of each calendar year that 
                                begins after that date of enactment, 
                                the Administrator shall publish in the 
                                Federal Register a report that 
                                specifies, with respect to the previous 
                                calendar year--
                                            ``(aa) the quantity of 
                                        reformulated gasoline produced 
                                        that is in excess of the 
                                        average annual quantity of 
                                        reformulated gasoline produced 
                                        in 2001 and 2002; and
                                            ``(bb) the reduction of the 
                                        average annual aggregate 
                                        emissions of toxic air 
                                        pollutants in each PADD, based 
                                        on retail survey data or data 
                                        from other appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics reductions.--
                                If, in any calendar year, the reduction 
                                of the average annual aggregate 
                                emissions of toxic air pollutants in a 
                                PADD fails to meet or exceed the 
                                reduction of the average annual 
                                aggregate emissions of toxic air 
                                pollutants in the PADD in calendar 
                                years 2001 and 2002, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall--
                                            ``(aa) identify, to the 
                                        maximum extent practicable, the 
                                        reasons for the failure, 
                                        including the sources, volumes, 
                                        and characteristics of 
                                        reformulated gasoline that 
                                        contributed to the failure; and
                                            ``(bb) promulgate revisions 
                                        to the regulations promulgated 
                                        under clause (ii), to take 
                                        effect not earlier than 180 
                                        days but not later than 270 
                                        days after the date of 
                                        promulgation, to provide that, 
                                        notwithstanding clause 
                                        (iii)(II), all reformulated 
                                        gasoline produced or 
                                        distributed at each refiner or 
                                        importer shall meet the 
                                        standards applicable under 
                                        clause (iii)(I) beginning not 
                                        later than April 1 of the 
                                        calendar year following 
                                        publication of the report under 
                                        subclause (I) and in each 
                                        calendar year thereafter.
                            ``(vi) Not later than July 1, 2007, the 
                        Administrator shall promulgate final 
                        regulations to control hazardous air pollutants 
                        from motor vehicles and motor vehicle fuels, as 
                        provided for in section 80.1045 of title 40, 
                        Code of Federal Regulations (as in effect on 
                        the date of enactment of this subparagraph), 
                        and as authorized under section 202(1) of the 
                        Clean Air Act. If the Administrator promulgates 
                        by such date, final regulations to control 
                        hazardous air pollutants from motor vehicles 
                        and motor vehicle fuels that achieve and 
                        maintain greater overall reductions in 
                        emissions of air toxics from reformulated 
                        gasoline than the reductions that would be 
                        achieved under section 211(k)(1)(B) of the 
                        Clean Air Act as amended by this clause, then 
                        sections 21l(k)(1)(i) through 211(k)(1)(v) 
                        shall be null and void and regulations 
                        promulgated thereunder shall be rescinded and 
                        have no further effect.
    (c) Commingling.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended by adding at the end the following:
            ``(11) Commingling.--The regulations under paragraph (1) 
        shall permit the commingling at a retail station of 
        reformulated gasoline containing ethanol and reformulated 
        gasoline that does not contain ethanol if, each time such 
        commingling occurs--
                    ``(A) the retailer notifies the Administrator 
                before the commingling, identifying the exact location 
                of the retail station and the specific tank in which 
                the commingling will take place; and
                    ``(B) the retailer certifies that the reformulated 
                gasoline resulting from the commingling will meet all 
                applicable requirements for reformulated gasoline, 
                including content and emission performance 
                standards.''.
    (d) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall revise the 
reformulated gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations, to consolidate the regulations 
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that 
title by eliminating the less stringent requirements applicable to 
gasoline designated for VOC-Control Region 2 and instead applying the 
more stringent requirements applicable to gasoline designated for VOC-
Control Region 1.
    (e) Savings Clause.--
            (1) In general.--Nothing in this section or any amendment 
        made by this section affects or prejudices any legal claim or 
        action with respect to regulations promulgated by the 
        Administrator before the date of enactment of this Act 
        regarding--
                    (A) emissions of toxic air pollutants from motor 
                vehicles; or
                    (B) the adjustment of standards applicable to a 
                specific refinery or importer made under those 
                regulations.
            (2) Adjustment of standards.--
                    (A) Applicability.--The Administrator may apply any 
                adjustments to the standards applicable to a refinery 
                or importer under subparagraph (B)(iii)(I) of section 
                211(k)(1) of the Clean Air Act (as added by subsection 
                (b)(2)), except that--
                            (i) the Administrator shall revise the 
                        adjustments to be based only on calendar years 
                        2001 and 2002;
                            (ii) any such adjustment shall not be made 
                        at a level below the average percentage of 
                        reductions of emissions of toxic air pollutants 
                        for reformulated gasoline supplied to PADD I 
                        during calendar years 2001 and 2002; and
                            (iii) in the case of an adjustment based on 
                        toxic air pollutant emissions from reformulated 
                        gasoline significantly below the national 
                        annual average emissions of toxic air 
                        pollutants from all reformulated gasoline--
                                    (I) the Administrator may revise 
                                the adjustment to take account of the 
                                scope of the prohibition on methyl 
                                tertiary butyl ether imposed by 
                                paragraph (5) of section 211(c) of the 
                                Clean Air Act (as added by section 
                                211(c)); and
                                    (II) any such adjustment shall 
                                require the refiner or importer, to the 
                                maximum extent practicable, to maintain 
                                the reduction achieved during calendar 
                                years 2001 and 2002 in the average 
                                annual aggregate emissions of toxic air 
                                pollutants from reformulated gasoline 
                                produced or distributed by the refiner 
                                or importer.

SEC. 225. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``may also'' and inserting ``shall, 
                on a regular basis,''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) to conduct tests to determine potential 
                public health and environmental effects of the fuel or 
                additive (including carcinogenic, teratogenic, or 
                mutagenic effects); and''; and
            (2) by adding at the end the following:
            ``(4) Study on certain fuel additives and blendstocks.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this paragraph, the Administrator 
                shall--
                            ``(i) conduct a study on the effects on 
                        public health (including the effects on 
                        children, pregnant women, minority or low-
                        income communities, and other sensitive 
                        populations), air quality, and water resources 
                        of increased use of, and the feasibility of 
                        using as substitutes for methyl tertiary butyl 
                        ether in gasoline--
                                    ``(I) ethyl tertiary butyl ether;
                                    ``(II) tertiary amyl methyl ether;
                                    ``(III) di-isopropyl ether;
                                    ``(IV) tertiary butyl alcohol;
                                    ``(V) other ethers and heavy 
                                alcohols, as determined by then 
                                Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates; and
                            ``(ii) conduct a study on the effects on 
                        public health (including the effects on 
                        children, pregnant women, minority or low-
                        income communities, and other sensitive 
                        populations), air quality, and water resources 
                        of the adjustment for ethanol-blended 
                        reformulated gasoline to the volatile organic 
                        compounds performance requirements that are 
                        applicable under paragraphs (1) and (3) of 
                        section 211(k); and
                            ``(iii) submit to the Committee on 
                        Environment and Public Works of the Senate and 
                        the Committee on Energy and Commerce of the 
                        House of Representatives a report describing 
                        the results of the studies under clauses (i) 
                        and (ii).
                    ``(B) Contracts for study.--In carrying out this 
                paragraph, the Administrator may enter into 1 or more 
                contracts with nongovernmental entities such as--
                            ``(i) the national energy laboratories; and
                            ``(ii) institutions of higher education (as 
                        defined in section 101 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1001)).''.

SEC. 226. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by 
section 205(a)) is amended by inserting after subsection (p) the 
following:
    ``(q) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 years after 
                the date of enactment of this paragraph, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by the Federal Reformulated Fuels Act 
                of 2005.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this paragraph, the 
                Administrator shall publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this section, 
        not later than 4 years after the date of enactment of this 
        paragraph, the Administrator shall develop and finalize an 
        emissions model that reflects, to the maximum extent 
        practicable, the effects of gasoline characteristics or 
        components on emissions from vehicles in the motor vehicle 
        fleet during calendar year 2007.
            ``(3) Permeation effects study.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Administrator 
                shall conduct a study, and report to Congress the 
                results of the study, on the effects of ethanol content 
                in gasoline on permeation, the process by which fuel 
                molecules migrate through the elastomeric materials 
                (rubber and plastic parts) that make up the fuel and 
                fuel vapor systems of a motor vehicle.
                    ``(B) Evaporative emissions.--The study shall 
                include estimates of the increase in total evaporative 
                emissions likely to result from the use of gasoline 
                with ethanol content in a motor vehicle, and the fleet 
                of motor vehicles, due to permeation.''.

SEC. 227. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient domestic 
                        capacity to produce reformulated Gasoline.--
                        If'';
            (3) in subparagraph (A)(ii) (as redesignated by paragraph 
        (2))--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause (i)''; and
                    (B) in the second sentence, by striking ``this 
                paragraph'' and inserting ``this subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Ozone transport Region.--
                            ``(i) Application of prohibition.--
                                    ``(I) In general.--On application 
                                of the Governor of a State in the ozone 
                                transport region established by section 
                                184(a), the Administrator, not later 
                                than 180 days after the date of receipt 
                                of the application, shall apply the 
                                prohibition specified in paragraph (5) 
                                to any area in the State (other than an 
                                area classified as a marginal, 
                                moderate, serious, or severe ozone 
                                nonattainment area under subpart 2 of 
                                part D of title I) unless the 
                                Administrator determines under clause 
                                (iii) that there is insufficient 
                                capacity to supply reformulated 
                                gasoline.
                                    ``(II) Publication of 
                                application.--As soon as practicable 
                                after the date of receipt of an 
                                application under subclause (I), the 
                                Administrator shall publish the 
                                application in the Federal Register.
                            ``(ii) Period of applicability.--Under 
                        clause (i), the prohibition specified in 
                        paragraph (5) shall apply in a State--
                                    ``(I) commencing as soon as 
                                practicable but not later than 2 years 
                                after the date of approval by the 
                                Administrator of the application of the 
                                Governor of the State; and
                                    ``(II) ending not earlier than 4 
                                years after the commencement date 
                                determined under subclause (I).
                            ``(iii) Extension of commencement date 
                        Based on insufficient capacity.--
                                    ``(I) In general.--If, after 
                                receipt of an application from a 
                                Governor of a State under clause (i), 
                                the Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person, after 
                                consultation with the Secretary of 
                                Energy, that there is insufficient 
                                capacity to supply reformulated 
                                gasoline, the Administrator, by 
                                regulation--
                                            ``(aa) shall extend the 
                                        commencement date with respect 
                                        to the State under clause 
                                        (ii)(I) for not more than 1 
                                        year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 228. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended--
            (1) by striking ``(C) A State'' and inserting the 
        following:
                    ``(C) Authority of State to control fuels and fuel 
                additives for reasons of necessity.--
                            ``(i) In general.--A State''; and
            (2) by adding at the end the following:
                            ``(ii) Enforcement by the Administrator.--
                        In any case in which a State prescribes and 
                        enforces a control or prohibition under clause 
                        (i), the Administrator, at the request of the 
                        State, shall enforce the control or prohibition 
                        as if the control or prohibition had been 
                        adopted under the other provisions of this 
                        section.''.

SEC. 229. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall jointly 
        conduct a study of Federal, State, and local requirements 
        concerning motor vehicle fuels, including--
                    (A) requirements relating to reformulated gasoline, 
                volatility (measured in Reid vapor pressure), 
                oxygenated fuel, and diesel fuel; and
                    (B) other requirements that vary from State to 
                State, region to region, or locality to locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of requirements 
                described in paragraph (1) on the supply, quality, and 
                price of motor vehicle fuels available to the consumer;
                    (B) the effect of the requirements described in 
                paragraph (1) on achievement of--
                            (i) national, regional, and local air 
                        quality standards and goals; and
                            (ii) related environmental and public 
                        health protection standards and goals 
                        (including the protection of children, pregnant 
                        women, minority or low-income communities, and 
                        other sensitive populations);
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refiners;
                            (ii) the fuel distribution system; and
                            (iii) industry investment in new capacity;
                    (D) the effect of the requirements described in 
                paragraph (1) on emissions from vehicles, refiners, and 
                fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while protecting and improving 
                air quality at the national, regional, and local 
                levels, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve fuel 
                        fungibility;
                            (ii) reduce price volatility and costs to 
                        consumers and producers;
                            (iii) provide increased liquidity to the 
                        gasoline market; and
                            (iv) enhance fuel quality, consistency, and 
                        supply; and
                    (F) the feasibility of providing incentives, and 
                the need for the development of national standards 
                necessary, to promote cleaner burning motor vehicle 
                fuel.
    (b) Report.--
            (1) In general.--Not later than June 1, 2008, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall submit to Congress a report on the 
        results of the study conducted under subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and administrative 
                actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers and 
                        producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The recommendations 
                under subparagraph (A) shall take into account the need 
                to provide advance notice of required modifications to 
                refinery and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel in all 
                States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) State and local air pollution control 
                regulators;
                    (D) public health experts;
                    (E) motor vehicle fuel producers and distributors; 
                and
                    (F) the public.

SEC. 230. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

    (a) In General.--Subject to the availability of appropriations 
under subsection (d), the Administrator of the Environmental Protection 
Agency shall, in consultation with the Secretary of Agriculture and the 
Biomass Research and Development Technical Advisory Committee 
established under section 306 of the Biomass Research and Development 
Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note), establish a 
program, to be known as the ``Advanced Biofuel Technologies Program'', 
to demonstrate advanced technologies for the production of alternative 
transportation fuels.
    (b) Priority.--In carrying out the program under subsection (a), 
the Administrator shall give priority to projects that enhance the 
geographical diversity of alternative fuels production and utilize 
feedstocks that represent 10 percent or less of ethanol or biodiesel 
fuel production in the United States during the previous fiscal year.
    (c) Demonstration Projects.--
            (1) In general.--As part of the program under subsection 
        (a), the Administrator shall fund demonstration projects--
                    (A) to develop not less than 4 different conversion 
                technologies for producing cellulosic biomass ethanol; 
                and
                    (B) to develop not less than 5 technologies for 
                coproducing value-added bioproducts (such as 
                fertilizers, herbicides, and pesticides) resulting from 
                the production of biodiesel fuel.
            (2) Administration.--Demonstration projects under this 
        subsection shall be--
                    (A) conducted based on a merit-reviewed, 
                competitive process; and
                    (B) subject to the cost-sharing requirements of 
                section 1002.
    (d) Authorization of appropriations.--There are authorized to be 
appropriated to carry out this section $110,000,000 for each of fiscal 
years 2005 through 2009.

SEC. 231. 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 the production of ethanol in the 
                States of Florida, Louisiana, Texas, and Hawaii in a 
                way similar to the existing program for the processing 
                of corn for ethanol 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. 232. NATIONAL PRIORITY PROJECT DESIGNATION.

    (a) Designation of National Priority Projects.--
            (1) In general.--There is established the National Priority 
        Project Designation (referred to in this section as the 
        ``Designation''), which shall be evidenced by a medal bearing 
        the inscription ``National Priority Project''.
            (2) Design and materials.--The medal shall be of such 
        design and materials and bear such additional inscriptions as 
        the President may prescribe.
    (b) Making and Presentation of Designation.--
            (1) In general.--The President, on the basis of 
        recommendations made by the Secretary, shall annually designate 
        organizations that have--
                    (A) advanced the field of renewable energy 
                technology and contributed to North American energy 
                independence; and
                    (B) been certified by the Secretary under 
                subsection (e).
            (2) Presentation.--The President shall designate projects 
        with such ceremonies as the President may prescribe.
            (3) Use of designation.--An organization that receives a 
        Designation under this section may publicize the Designation of 
        the organization as a National Priority Project in advertising.
            (4) Categories in which the designation may be given.--
        Separate Designations shall be made to qualifying projects in 
        each of the following categories:
                    (A) Wind and biomass energy generation projects.
                    (B) Photovoltaic and fuel cell energy generation 
                projects.
                    (C) Energy efficient building and renewable energy 
                projects.
                    (D) First-in-Class projects.
    (c) Selection Criteria.--
            (1) In general.--Certification and selection of the 
        projects to receive the Designation shall be based on criteria 
        established under this subsection.
            (2) Wind, biomass, and building projects.--In the case of a 
        wind, biomass, or building project, the project shall 
        demonstrate that the project will install not less than 30 
        megawatts of renewable energy generation capacity.
            (3) Solar photovoltaic and fuel cell projects.--In the case 
        of a solar photovoltaic or fuel cell project, the project shall 
        demonstrate that the project will install not less than 3 
        megawatts of renewable energy generation capacity.
            (4) Energy efficient building and renewable energy 
        projects.--In the case of an energy efficient building or 
        renewable energy project, in addition to meeting the criteria 
        established under paragraph (2), each building project shall 
        demonstrate that the project will--
                    (A) comply with third-party certification standards 
                for high-performance, sustainable buildings;
                    (B) use whole-building integration of energy 
                efficiency and environmental performance design and 
                technology, including advanced building controls;
                    (C) use renewable energy for at least 50 percent of 
                the energy consumption of the project;
                    (D) comply with applicable Energy Star standards; 
                and
                    (E) include at least 5,000,000 square feet of 
                enclosed space.
            (5) First-in-class use.--Notwithstanding paragraphs (2) 
        through (4), a new building project may qualify under this 
        section if the Secretary determines that the project--
                    (A) represents a First-In-Class use of renewable 
                energy; or
                    (B) otherwise establishes a new paradigm of 
                building integrated renewable energy use or energy 
                efficiency.
    (d) Application.--
            (1) Initial applications.--No later than 120 days after the 
        date of enactment of this Act, and annually thereafter, the 
        Secretary shall publish in the Federal Register an invitation 
        and guidelines for submitting applications, consistent with 
        this section.
            (2) Contents.--The application shall describe the project, 
        or planned project, and the plans to meet the criteria 
        established under subsection (c).
    (e) Certification.--
            (1) In general.--Not later than 60 days after the 
        application period described in subsection (d), and annually 
        thereafter, the Secretary shall certify projects that are 
        reasonably expected to meet the criteria established under 
        subsection (c).
            (2) Certified projects.--The Secretary shall designate 
        personnel of the Department to work with persons carrying out 
        each certified project and ensure that the personnel--
                    (A) provide each certified project with guidance in 
                meeting the criteria established under subsection (c);
                    (B) identify programs of the Department, including 
                National Laboratories and Technology Centers, that will 
                assist each project in meeting the criteria established 
                under subsection (c); and
                    (C) ensure that knowledge and transfer of the most 
                current technology between the applicable resources of 
                the Federal Government (including the National 
                Laboratories and Technology Centers, the Department, 
                and the Environmental Protection Agency) and the 
                certified projects is being facilitated to accelerate 
                commercialization of work developed through those 
                resources.
    (f) 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 2010.

SEC. 233. 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. 234. WASTE-DERIVED ETHANOL AND BIODIESEL.

    Section 312(f)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13220(f)(1)) is amended--
            (1) by striking ```biodiesel' means'' and inserting the 
        following: ```biodiesel'--
                    ``(A) means''; and
            (2) in subparagraph (A) (as designated by paragraph (1)) by 
        striking ``and'' at the end and inserting the following:
                    ``(B) includes biodiesel derived from--
                            ``(i) animal wastes, including poultry fats 
                        and poultry wastes, and other waste materials; 
                        or
                            ``(ii) municipal solid waste and sludges 
                        and oils derived from wastewater and the 
                        treatment of wastewater; and''.''

                       Subtitle D--Insular Energy

SEC. 241. DEFINITIONS.

    In this subtitle:
            (1) Distributed generation.--The term ``distributed 
        generation'' means energy supplied in a rural or off-grid area.
            (2) Insular area.--The term ``insular area'' means--
                    (A) Guam;
                    (B) American Samoa;
                    (C) the Commonwealth of the Northern Mariana 
                Islands;
                    (D) the Federated States of Micronesia;
                    (E) the Republic of the Marshall Islands;
                    (F) the Republic of Palau;
                    (G) the United States Virgin Islands; and
                    (H) the Commonwealth of Puerto Rico.

SEC. 242. ASSESSMENT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary (in consultation with the Secretary of 
Interior) shall--
            (1) conduct an assessment of the energy needs of insular 
        areas; and
            (2) submit a report describing the results of the 
        assessment to--
                    (A) the Committee on Energy and Natural Resources 
                of the Senate;
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives; and
                    (C) the Committee on Resources of the House of 
                Representatives.
    (b) Strategies and Projects.--In conducting the assessment, for 
each of the insular areas, the Secretary shall identify and evaluate 
the strategies or projects with the greatest potential for reducing the 
dependence of the insular area on imported fossil fuels as used for the 
generation of electricity, including strategies and projects for--
            (1) improved supply-side efficiency of centralized 
        electrical generation, transmission, and distribution systems;
            (2) improved demand-side management through--
                    (A) the application of established standards for 
                energy efficiency for appliances;
                    (B) the conduct of energy audits for business and 
                industrial customers; and
                    (C) the use of energy savings performance 
                contracts;
            (3) increased use of renewable energy, including--
                    (A) solar thermal energy for electric generation;
                    (B) solar thermal energy for water heating in large 
                buildings, such as hotels, hospitals, government 
                buildings, and residences;
                    (C) photovoltaic energy;
                    (D) wind energy;
                    (E) hydroelectric energy;
                    (F) wave energy;
                    (G) energy from ocean thermal resources, including 
                ocean thermal-cooling for community air conditioning;
                    (H) water vapor condensation for the production of 
                potable water;
                    (I) fossil fuel and renewable hybrid electrical 
                generation systems; and
                    (J) other strategies or projects that the Secretary 
                may identify as having significant potential; and
            (4) fuel substitution and minimization with indigenous 
        biofuels, such as coconut oil.
    (c) Distributed Generation.--In conducting the assessment, for each 
insular area with a significant need for distributed generation, the 
Secretary shall identify and evaluate the most promising strategies and 
projects described in paragraphs (3) and (4) of subsection (b) for 
meeting that need.
    (d) Factors.--In assessing the potential of any strategy or project 
under this section, the Secretary shall consider--
            (1) the estimated cost of the power or energy to be 
        produced, including--
                    (A) any additional costs associated with the 
                distribution of the generation; and
                    (B) the long-term availability of the generation 
                source;
            (2) the capacity of the local electrical utility to manage, 
        operate, and maintain any project that may be undertaken; and
            (3) other factors the Secretary considers to be 
        appropriate.

SEC. 243. PROJECT FEASIBILITY STUDIES.

    (a) In General.--On a request described in subsection (b), the 
Secretary shall conduct a feasibility study of a project to implement a 
strategy or project identified under section 222 as having the 
potential to--
            (1) significantly reduce the dependence of an insular area 
        on imported oil; or
            (2) provide needed distributed generation to an insular 
        area.
    (b) Request.--The Secretary shall conduct a feasibility study under 
subsection (a) on--
            (1) 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
            (2) 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.
    (c) Consultation.--The Secretary shall consult with regional 
utility organizations in--
            (1) conducting feasibility studies under subsection (a); 
        and
            (2) determining the feasibility of potential projects.
    (d) Feasibility.--For the purpose of a feasibility study under 
subsection (a), 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.

SEC. 244. IMPLEMENTATION.

    (a) In General.--On a determination by the Secretary (in 
consultation with the Secretary of the Interior) that a project is 
feasible under section 223 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.
    (b) Regional Utility Organizations.--In providing assistance under 
subsection (a), the Secretary shall consider providing the assistance 
through regional utility organizations.

SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary--
            (1) $500,000 for the completion of the assessment under 
        section 222;
            (2) $500,000 for each fiscal year for project feasibility 
        studies under section 223; and
            (3) $5,000,000 for each fiscal year for project 
        implementation under section 224.
    (b) 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 paragraphs 
(2) and (3) of subsection (a) unless the Secretary determines that 
providing funding in excess of that percentage best advances existing 
opportunities to meet the objectives of this subtitle.

                       Subtitle E--Biomass Energy

SEC. 251. DEFINITIONS.

    In this subtitle:
            (1) Biomass.--The term ``biomass'' means nonmerchantable 
        material from, or precommercial thinnings of, trees and woody 
        plants produced from treatments--
                    (A) to reduce hazardous fuels;
                    (B) to reduce or contain disease or insect 
                infestations; or
                    (C) to restore forest health.
            (2) Eligible community.--The term ``eligible community'' 
        means an Indian Reservation, or a county, town, township, 
        municipality, or other similar unit of local government with a 
        population of not more than 50,000 individuals that the 
        Secretary determines is located in an area near Federal or 
        Indian land, that is--
                    (A) at significant risk of catastrophic wildfire, 
                disease, or insect infestation; or
                    (B) diseased or infested by insects.
            (3) Eligible operation.--The term ``eligible operation'' 
        means a facility that--
                    (A) is located within the boundaries of an eligible 
                community; and
                    (B) uses biomass from Federal or Indian land as a 
                raw material to produce electric energy, sensible heat, 
                or transportation fuels.
            (4) Green ton.--The term ``green ton'' means 2,000 pounds 
        of biomass that has not been mechanically or artificially 
        dried.
            (5) 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)).
            (6) Person.--The term ``person'' includes--
                    (A) an individual;
                    (B) an eligible community;
                    (C) an Indian tribe;
                    (D) a small business or a corporation that is 
                incorporated in the United States; and
                    (E) a nonprofit organization.
            (7) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Agriculture, with respect to 
                land within the National Forest System; or
                    (B) the Secretary of the Interior, with respect to 
                Federal land under the jurisdiction of the Secretary of 
                the Interior and Indian land.

SEC. 252. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

    (a) In General.--The Secretary may make grants to any person that 
owns or operates an eligible operation to offset the costs incurred to 
purchase biomass for use by the eligible operation.
    (b) Priority.--In making grants under subsection (a), the Secretary 
shall give priority to eligible operations that use biomass from the 
highest risk areas, as determined by the Secretary.
    (c) Grant Amount.--A grant provided under this section may not 
exceed $20 per green ton of biomass delivered.
    (d) Monitoring of Grant Recipient Activities.--
            (1) In general.--As a condition of a grant under this 
        section, the grant recipient shall keep such records as the 
        Secretary may require to fully and correctly disclose the use 
        of the grant funds and all transactions involved in the 
        purchase of biomass.
            (2) Access.--On notice by the Secretary, the grant 
        recipient shall provide the Secretary reasonable access to 
        examine the inventory and records of the eligible operation.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section for each of fiscal years 2006 through 
        2010--
                    (A) $12,500,000 to the Secretary of Agriculture; 
                and
                    (B) $12,500,000 to the Secretary of the Interior.
            (2) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.

SEC. 253. IMPROVED BIOMASS UTILIZATION PROGRAM.

    (a) In General.--The Secretary may provide grants to persons in 
eligible communities to offset the costs of developing or researching 
proposals to improve the use of biomass or add value to biomass 
utilization.
    (b) Selection.--Grant recipients shall be selected based on the 
potential of a proposal to--
            (1) develop affordable thermal or electric energy resources 
        for the benefit of an eligible community;
            (2) provide opportunities for the creation or expansion of 
        small business concerns within an eligible community;
            (3) create new job opportunities within an eligible 
        community;
            (4) improve efficiency or develop cleaner technologies for 
        biomass utilization; and
            (5) reduce the hazardous fuel from the highest risk areas.
    (c) Limitation.--No grant provided under this section shall exceed 
$500,000.
    (d) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section for each of fiscal years 2006 through 
        2010--
                    (A) $12,500,000 to the Secretary of Agriculture; 
                and
                    (B) $12,500,000 to the Secretary of the Interior.
            (2) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.

SEC. 254. REPORT.

    Not later than 3 years after the date of enactment of this Act, the 
Secretary of Agriculture and the Secretary of the Interior shall 
jointly submit to Congress a report that describes the interim results 
of the programs carried out under sections 232 and 233.

                     Subtitle F--Geothermal Energy

SEC. 261. 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.
    ``(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 necessary to process applications for 
        geothermal leasing pending on May 19, 2005.
            ``(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.''.

SEC. 262. 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:
    ``(d) 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 or any 
                other basis that the Secretary finds appropriate under 
                the circumstances; and
                    ``(B) shall ensure a fair return to the United 
                States for use of the resource.
            ``(3) State or local governments.--If a State or local 
        government is the lessee and uses geothermal resources without 
        sale and for purposes other than commercial generation of 
        electricity, the Secretary shall charge only a nominal fee for 
        use of the resource.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1003) (as amended by section 241) is amended adding 
at the end the following:
    ``(e) 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 120 days before the date of the issuance of the 
        lease;
            ``(2) does not receive during the 120-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 
        land to be leased.
    ``(f) 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.''.

SEC. 263. ROYALTIES.

    (a) Calculation of Royalties.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        issue a final regulation that provides a simplified methodology 
        for calculating the royalty under subsection (a)(1) of section 
        5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
        amended by section 242(a)).
            (2) Considerations.--In issuing the final regulation under 
        paragraph (1), the Secretary shall--
                    (A) consider the use of a method based on gross 
                proceeds from the sale of electricity; and
                    (B) ensure that the final regulation issued under 
                paragraph (1) results in the same level of royalty 
                revenues over a 10-year period as the regulation in 
                effect on the day before the date of enactment of this 
                Act.
    (b) 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 comply with--
                    (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 242(a)), the schedule of fees 
                established under that section; and
                    (B) in the case of any other lease, the methodology 
                established under subsection (a).
            (2) Timing.--A request for a modification under paragraph 
        (1) shall be submitted to the Secretary 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 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 shall 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 
                        methodology established under subsection (a); 
                        and
                    (B) the modification shall apply to any use of 
                geothermal steam and any associated geothermal 
                resources to which subsection (a) applies that occurs 
                after the date of the modification.
            (4) Consultation.--The Secretary shall consult with the 
        State and local governments affected by any proposed changes in 
        lease royalty terms under this subsection.

SEC. 264. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LAND.

    (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 regarding 
leasing and permitting for geothermal development of public land and 
National Forest System land under the respective jurisdictions of the 
Secretaries.
    (b) Lease and Permit Applications.--The memorandum of understanding 
shall--
            (1) identify areas with geothermal potential on land 
        included in the National Forest System and, if necessary, 
        require review of management plans to consider leasing under 
        the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as a 
        land use; and
            (2) establish an administrative procedure for processing 
        geothermal lease applications, including lines of authority, 
        steps in application processing, and time limits for 
        application processing.
    (c) Data Retrieval System.--The memorandum of understanding shall 
establish a joint data retrieval system that--
            (1) is capable of tracking lease and permit applications; 
        and
            (2) provides to the applicant information as to the status 
        of an application within the Departments of the Interior and 
        Agriculture, including an estimate of the time required for 
        administrative action.

SEC. 265. 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. 266. 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 steam and 
associated 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 1 or more lessees of geothermal leases, with 
        1 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. 267. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
amended by section 242(a)) is 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. 268. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

    Section 6(i) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1005(i)) is amended by striking paragraph (2) and inserting the 
following:
    ``(2) The Secretary shall, by regulation, establish payments under 
this subsection at levels that ensure the diligent development of the 
lease.''.

SEC. 269. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) (as amended by section 242(a)) is 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 first through tenth 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 first year and $3 per acre or 
                        fraction thereof for each of the second 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 
section 242(a)) is amended by adding at the end the following:
    ``(c) 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. 270. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

      Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
(as amended by section 249(b)) is amended by adding at the end the 
following:
    ``(d) 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. 271. LEASING AND PERMITTING ON FEDERAL LAND WITHDRAWN FOR MILITARY 
              PURPOSES.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Secretary of the Interior and the Secretary of 
Defense, in consultation with the Secretary of the Air Force, the 
Secretary of the Army, the Secretary of the Navy, interested States, 
political subdivisions of States, and representatives of the geothermal 
industry, and other interested persons, shall submit to the appropriate 
committees of Congress a joint report on leasing and permitting 
activities for geothermal energy on Federal land withdrawn for military 
purposes.
    (b) Requirements.--The report required under subsection (a) shall 
include--
            (1) a description of the military geothermal program, 
        including a description of--
                    (A) any differences between the military geothermal 
                program and the nonmilitary geothermal program, 
                including required security procedures and operational 
                considerations; and
                    (B) the reasons the differences described in 
                subparagraph (A) are significant;
            (2) with respect to the military geothermal program, a 
        description of--
                    (A) revenues or energy provided to the Department 
                of Defense and facilities of the Department Defense; 
                and
                    (B) royalty structures, as applicable;
            (3) any revenue sharing with States and political 
        subdivisions of States and other benefits from--
                    (A) the implementation of the Geothermal Steam Act 
                of 1970 (30 U.S.C 1001 et seq.) and other applicable 
                Federal law by the Secretary of the Interior; and
                    (B) the administration of geothermal leasing under 
                section 2689 of title 10, United States Code, by the 
                Secretary of Defense;
            (4) if appropriate--
                    (A) a description of the current methods and 
                procedures used to ensure interagency coordination, as 
                needed, in developing renewable energy sources on 
                Federal land withdrawn for military purposes; and
                    (B) an identification of any new procedures that 
                would improve interagency coordination to ensure 
                efficient processing and administration of leases or 
                contracts for geothermal energy on Federal land 
                withdrawn for military purposes, consistent with the 
                defense purposes of the withdrawals; and
            (5) recommendations for any legislative or administrative 
        actions that would increase geothermal production, including--
                    (A) a common royalty structure;
                    (B) leasing procedures; and
                    (C) other changes that--
                            (i) increase production;
                            (ii) offset military operation costs; or
                            (iii) enhance the ability of Federal 
                        agencies to develop geothermal resources.
    (c) Effect.--Nothing in this section affects the legal status of 
geothermal leasing and development conducted by the Department of the 
Interior and the Department of Defense.

SEC. 272. TECHNICAL AMENDMENTS.

    (a) The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is 
amended by striking ``geothermal steam and associated geothermal 
resources'' each place it appears and inserting ``geothermal 
resources''.
    (b) The first section of the Geothermal Steam Act of 1970 (30 
U.S.C. 1001 note) is amended by striking ``That this'' and inserting 
the following:

``SECTION 1. SHORT TITLE.

    ``This''.
    (c) Section 2 of the Geothermal Steam Act of 1970 (30 U.S.C. 1001) 
is amended--
            (1) by striking ``Sec. 2. As'' and inserting the following:

``SEC. 2. DEFINITIONS.

    ``As''; and
            (2) by striking subsection (e) and inserting the following:
            ``(e) `direct use' means use of geothermal resources for 
        commercial, residential, agricultural, public facilities, or 
        other energy needs other than the commercial production of 
        electricity; and''.
    (d) Section 3 of the Geothermal Steam Act of 1970 (30 U.S.C. 1002) 
is amended by striking ``Sec. 3. Subject'' and inserting the following:

``SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING.

    ``Subject''.
    (e) Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
is amended by striking ``Sec. 5. Geothermal'' and inserting the 
following:

``SEC. 5. RENTS AND ROYALTIES.

    ``Geothermal''.
    (f) Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) 
is amended by striking ``Sec. 6. (a) The'' and inserting the following:

``SEC. 6. DURATION OF LEASES.

    ``(a) The''.
    (g) Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) 
is amended by striking ``Sec. 7. A geothermal'' and inserting the 
following:

``SEC. 7. ACREAGE OF GEOTHERMAL LEASE.

    ``A geothermal''.
    (h) Section 8 of the Geothermal Steam Act of 1970 (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''.
    (i) Section 9 of the Geothermal Steam Act of 1970 (30 U.S.C. 1008) 
is amended by striking ``Sec. 9. If'' and inserting the following:

``SEC. 9. BYPRODUCTS.

    ``If''.
    (j) Section 10 of the Geothermal Steam Act of 1970 (30 U.S.C. 1009) 
is amended by striking ``Sec. 10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    ``The''.
    (k) Section 11 of the Geothermal Steam Act of 1970 (30 U.S.C. 1010) 
is amended by striking ``Sec. 11. The'' and inserting the following:

``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

    ``The''.
    (l) Section 12 of the Geothermal Steam Act of 1970 (30 U.S.C. 1011) 
is amended by striking ``Sec. 12. Leases'' and inserting the following:

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
    (m) Section 13 of the Geothermal Steam Act of 1970 (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''.
    (n) Section 14 of the Geothermal Steam Act of 1970 (30 U.S.C. 1013) 
is amended by striking ``Sec. 14. Subject'' and inserting the 
following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
    (o) Section 15 of the Geothermal Steam Act of 1970 (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''.
    (p) Section 16 of the Geothermal Steam Act of 1970 (30 U.S.C. 1015) 
is amended by striking ``Sec. 16. Leases'' and inserting the following:

``SEC. 16. REQUIREMENT FOR LESSEES.

    ``Leases''.
    (q) Section 17 of the Geothermal Steam Act of 1970 (30 U.S.C. 1016) 
is amended by striking ``Sec. 17. Administration'' and inserting the 
following:

``SEC. 17. ADMINISTRATION.

    ``Administration''.
    (r) Section 19 of the Geothermal Steam Act of 1970 (30 U.S.C. 1018) 
is amended by striking ``Sec. 19. Upon'' and inserting the following:

``SEC. 19. DATA FROM FEDERAL AGENCIES.

    ``Upon''.
    (s) Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) 
is amended by striking ``Sec. 20. Subject'' and inserting the 
following:

``SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM SALES, BONUSES, 
              ROYALTIES, AND RENTALS.

    ``Subject''.
    (t) Section 21 of the Geothermal Steam Act of 1970 (30 U.S.C. 1020) 
is amended by striking ``Sec. 21.'' and all that follows through ``(b) 
Geothermal'' and inserting the following:

``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL 
              RIGHTS.

    ``Geothermal''.
    (u) Section 22 of the Geothermal Steam Act of 1970 (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''.
    (v) Section 23 of the Geothermal Steam Act of 1970 (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''.
    (w) Section 24 of the Geothermal Steam Act of 1970 (30 U.S.C. 1023) 
is amended by striking ``Sec. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
    (x) Section 25 of the Geothermal Steam Act of 1970 (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''.
    (y) Section 26 of the Geothermal Steam Act of 1970 is amended by 
striking ``Sec. 26. The'' and inserting the following:

``SEC. 26. AMENDMENT.

    ``The''.
    (z) Section 27 of the Geothermal Steam Act of 1970 (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''.
    (aa) Section 28 of the Geothermal Steam Act of 1970 (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''.
    (bb) Section 29 of the Geothermal Steam Act of 1970 (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''.

                       Subtitle G--Hydroelectric

SEC. 281. 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 within a time 
frame established by the Commission for each license proceeding. Within 
90 days of the date of enactment of this Act, 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 within a time frame established by the Commission for each 
license proceeding. Within 90 days of the date of enactment of this 
Act, 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) the Secretary concurs with the license applicant's 
        judgment that the alternative condition will either--
                    ``(i) cost significantly less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production, as compared to the 
                condition initially deemed necessary by the Secretary.
    ``(3) The Secretary 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.
    ``(4) If the Secretary does not accept an applicant's alternative 
condition under this section, and the Commission finds that the 
Secretary's 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) the Secretary concurs with the license applicant's 
        judgment that the alternative prescription will either--
                    ``(i) cost significantly less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production, as compared to the 
                fishway initially deemed necessary by the Secretary.
    ``(3) 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.
    ``(4) If the Secretary concerned does not accept an applicant's 
alternative prescription under this section, and the Commission finds 
that the Secretary's 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. 282. 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. 283. 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.

                Subtitle H--Renewable Portfolio Standard

SEC. 291. RENEWABLE PORTFOLIO STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2601 et seq.) is amended by adding at the end the following:

``SEC. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy Requirement.--
            ``(1) In general.--Each electric utility that sells 
        electricity to electric consumers shall obtain a percentage of 
        the base amount of electricity it sells to electric consumers 
        in any calendar year from new renewable energy or existing 
        renewable energy. The percentage obtained in a calendar year 
        shall not be less than the amount specified in the following 
        table:

``Calendar year:                             Minimum annual percentage:
    2008 through 2011.............................                 2.5 
    2012 through 2015.............................                 5.0 
    2016 through 2019.............................                 7.5 
    2020 through 2030.............................                10.0.
            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) generating electric energy using new 
                renewable energy or existing renewable energy;
                    ``(B) purchasing electric energy generated by new 
                renewable energy or existing renewable energy;
                    ``(C) purchasing renewable energy credits issued 
                under subsection (b); or
                    ``(D) a combination of the foregoing.
    ``(b) Renewable Energy Credit Trading Program.--
            ``(1) Not later than January 1, 2007, the Secretary shall 
        establish a renewable energy credit trading program to permit 
        an electric utility that does not generate or purchase enough 
        electric energy from renewable energy to meet its obligations 
        under subsection (a)(1) to satisfy such requirements by 
        purchasing sufficient renewable energy credits.
            ``(2) As part of such program the Secretary shall--
                    ``(A) issue renewable energy credits to generators 
                of electric energy from new renewable energy;
                    ``(B) sell renewable energy credits to electric 
                utilities at the rate of 1.5 cents per kilowatt-hour 
                (as adjusted for inflation under subsection (g));
                    ``(C) ensure that a kilowatt hour, including the 
                associated renewable energy credit, shall be used only 
                once for purposes of compliance with this section; and
                    ``(D) allow double credits for generation from 
                facilities on Indian Lands, and triple credits for 
                generation from small renewable distributed generators 
                (meaning those those no larger than 1 megawatt).
            ``(3) Credits under paragraph (2)(A) may only be used for 
        compliance with this section for 3 years from the date issued.
    ``(c) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the renewable energy requirements of subsection (a) shall 
        be subject to a civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be determined by multiplying the number of kilowatt-hours 
        of electric energy sold to electric consumers in violation of 
        subsection (a) by the greater of 1.5 cents (adjusted for 
        inflation under subsection (g)) or 200 percent of the average 
        market value of renewable energy credits during the year in 
        which the violation occurred.
            ``(3) Mitigation or waiver.--The Secretary may mitigate or 
        waive a civil penalty under this subsection if the electric 
        utility was unable to comply with subsection (a) for reasons 
        outside of the reasonable control of the utility. The Secretary 
        shall reduce the amount of any penalty determined under 
        paragraph (2) by an amount paid by the electric utility to a 
        State for failure to comply with the requirement of a State 
        renewable energy program if the State requirement is greater 
        than the applicable requirement of subsection (a).
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(d) State Renewable Energy Account Program.--
            ``(1) The Secretary shall establish, not later than 
        December 31, 2008, a State renewable energy account program.
            ``(2) All money collected by the Secretary from the sale of 
        renewable energy credits and the assessment of civil penalties 
        under this section shall be deposited into the renewable energy 
        account established pursuant to this subsection. The State 
        renewable energy account shall be held by the Secretary and 
        shall not be transferred to the Treasury Department.
            ``(3) Proceeds deposited in the State renewable energy 
        account shall be used by the Secretary, subject to 
        appropriations, for a program to provide 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) for the purposes of promoting renewable 
        energy production, including programs that promote technologies 
        that reduce the use of electricity at customer sites such as 
        solar water heating.
            ``(4) The Secretary may issue guidelines and criteria for 
        grants awarded under this subsection. State energy offices 
        receiving grants under this section shall maintain such records 
        and evidence of compliance as the Secretary may require.
            ``(5) In allocating funds under this program, the Secretary 
        shall give preference--
                    ``(A) to States in regions which have a 
                disproportionately small share of economically 
                sustainable renewable energy generation capacity; and
                    ``(B) to State programs to stimulate or enhance 
                innovative renewable energy technologies.
    ``(e) Rules.--The Secretary shall issue rules implementing this 
section not later than 1 year after the date of enactment of this 
section.
    ``(f) Exemptions.--This section shall not apply in any calendar 
year to an electric utility--
            ``(1) that sold less than 4,000,000 megawatt-hours of 
        electric energy to electric consumers during the preceding 
        calendar year; or
            ``(2) in Hawaii.
    ``(g) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2008, the Secretary shall adjust for inflation the 
price of a renewable energy credit under subsection (b)(2)(B) and the 
amount of the civil penalty per kilowatt-hour under subsection (c)(2).
    ``(h) State Programs.--Nothing in this section shall diminish any 
authority of a State or political subdivision thereof to adopt or 
enforce any law or regulation respecting renewable energy, but, except 
as provided in subsection (c)(3), no such law or regulation shall 
relieve any person of any requirement otherwise applicable under this 
section. The Secretary, in consultation with States having such 
renewable energy programs, shall, to the maximum extent practicable, 
facilitate coordination between the Federal program and State programs.
    ``(i) Definitions.--For purposes of this section:
            ``(1) Base amount of electricity.--The term `base amount of 
        electricity' means the total amount of electricity sold by an 
        electric utility to electric consumers in a calendar year, 
        excluding--
                    ``(A) electricity generated by a hydroelectric 
                facility (including a pumped storage facility but 
                excluding incremental hydropower); and
                    ``(B) electricity generated through the 
                incineration of municipal solid waste.
            ``(2) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at a 
        customer site.
            ``(3) Existing renewable energy.--The term `existing 
        renewable energy' means, except as provided in paragraph 
        (7)(B), electric energy generated at a facility (including a 
        distributed generation facility) placed in service prior to the 
        date of enactment of this section from solar, wind, or 
        geothermal energy; ocean energy; biomass (as defined in section 
        203(a) of the Energy Policy Act of 2005); or landfill gas.
            ``(4) Geothermal energy.--The term `geothermal energy' 
        means energy derived from a geothermal deposit (within the 
        meaning of section 613(e)(2) of the Internal Revenue Code of 
        1986).
            ``(5) Incremental geothermal production.--
                    ``(A) In general.--The term `incremental geothermal 
                production' means for any year the excess of--
                            ``(i) the total kilowatt hours of 
                        electricity produced from a facility (including 
                        a distributed generation facility) using 
                        geothermal energy, over
                            ``(ii) the average annual kilowatt hours 
                        produced at such facility for 5 of the previous 
                        7 calendar years before the date of enactment 
                        of this section after eliminating the highest 
                        and the lowest kilowatt hour production years 
                        in such 7-year period.
                    ``(B) Special rule.--A facility described in 
                subparagraph (A) which was placed in service at least 7 
                years before the date of enactment of this section 
                shall commencing with the year in which such date of 
                enactment occurs, reduce the amount calculated under 
                subparagraph (A)(ii) each year, on a cumulative basis, 
                by the average percentage decrease in the annual 
                kilowatt hour production for the 7-year period 
                described in subparagraph (A)(ii) with such cumulative 
                sum not to exceed 30 percent.
            ``(6) Incremental hydropower.--The term `incremental 
        hydropower' means additional energy generated as a result of 
        efficiency improvements or capacity additions made on or after 
        the date of enactment of this section or the effective date of 
        an existing applicable State renewable portfolio standard 
        program at a hydroelectric facility that was placed in service 
        before that date. The term does not include additional energy 
        generated as a result of operational changes not directly 
        associated with efficiency improvements or capacity additions. 
        Efficiency improvements and capacity additions shall be 
        measured on the basis of the same water flow information used 
        to determine a historic average annual generation baseline for 
        the hydroelectric facility and certified by the Secretary or 
        the Federal Energy Regulatory Commission.
            ``(7) New renewable energy.--The term `new renewable 
        energy' means--
                    ``(A) electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service on or after January 1, 2003, from--
                            ``(i) solar, wind, or geothermal energy or 
                        ocean energy;
                            ``(ii) biomass (as defined in section 
                        203(a) of the Energy Policy Act of 2005);
                            ``(iii) landfill gas; or
                            ``(iv) incremental hydropower; and
                    ``(B) for electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service prior to the date of enactment of this 
                section--
                            ``(i) the additional energy above the 
                        average generation in the 3 years preceding the 
                        date of enactment of this section at the 
                        facility from--
                                    ``(I) solar or wind energy or ocean 
                                energy;
                                    ``(II) biomass (as defined in 
                                section 203(a) of the Energy Policy Act 
                                of 2005);
                                    ``(III) landfill gas; or
                                    ``(IV) incremental hydropower.
                            ``(ii) the incremental geothermal 
                        production.
            ``(8) Ocean energy.--The term `ocean energy' includes 
        current, wave, tidal, and thermal energy.
    ``(j) Sunset.--This section expires on December 31, 2030.''.

                         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 gasoline 
or heating oil 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) In general.--The Secretary shall develop, with 
                an opportunity for public comment, procedures to obtain 
                oil for the Reserve with the intent of maximizing the 
                overall domestic supply of crude oil (including 
                quantities stored in private sector inventories) and 
                minimizing the costs to the Department of the Interior 
                and the Department of Energy of acquiring such oil 
                (including foregone revenues to the Treasury when oil 
                for the Reserve is obtained through the royalty-in-kind 
                program), consistent with national security.
                    (B) Considerations.--The procedures shall provide 
                that, for purposes of determining whether to acquire 
                oil for the Reserve or defer deliveries of oil, the 
                Secretary shall take into account--
                            (i) current and future prices, supplies, 
                        and inventories of oil;
                            (ii) national security; and
                            (iii) other factors that the Secretary 
                        determines to be appropriate.
                    (C) Review of requests for deferrals of scheduled 
                deliveries.--The procedures shall include procedures 
                and criteria for the review of requests for the 
                deferrals of scheduled deliveries.
                    (D) Deadlines.--The Secretary shall--
                            (i) propose the procedures required under 
                        this paragraph 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 oil for 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. SMALL BUSINESS AND AGRICULTURAL PRODUCER ENERGY EMERGENCY 
              DISASTER LOAN PROGRAM.

    (a) Small Business Producer Energy Emergency Disaster Loan 
Program.--
            (1) Disaster loan authority.--Section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)) is amended by inserting after 
        paragraph (3) the following:
            ``(4)(A) In this paragraph--
                    ``(i) the term `base price index' means the moving 
                average of the closing unit price on the New York 
                Mercantile Exchange for heating oil, natural gas, 
                gasoline, or propane for the 10 days, in each of the 
                most recent 2 preceding years, which correspond to the 
                trading days described in clause (ii);
                    ``(ii) the term `current price index' means the 
                moving average of the closing unit price on the New 
                York Mercantile Exchange, for the 10 most recent 
                trading days, for contracts to purchase heating oil, 
                natural gas, gasoline, or propane during the subsequent 
                calendar month, commonly known as the `front month'; 
                and
                    ``(iii) the term `significant increase' means--
                            ``(I) with respect to the price of heating 
                        oil, natural gas, gasoline, or propane, any 
                        time the current price index exceeds the base 
                        price index by not less than 40 percent; and
                            ``(II) with respect to the price of 
                        kerosene, any increase which the Administrator, 
                        in consultation with the Secretary of Energy, 
                        determines to be significant.
            ``(B) The Administration may make such loans, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, to assist a small business concern that has 
        suffered or that is likely to suffer substantial economic 
        injury on or after January 1, 2005, as the result of a 
        significant increase in the price of heating oil, natural gas, 
        gasoline, propane, or kerosene occurring on or after January 1, 
        2005.
            ``(C) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(D) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, if the total amount outstanding and 
        committed to the borrower under this subsection would exceed 
        $1,500,000, unless such borrower constitutes a major source of 
        employment in its surrounding area, as determined by the 
        Administration, in which case the Administration, in its 
        discretion, may waive the $1,500,000 limitation.
            ``(E) For purposes of assistance under this paragraph--
                    ``(i) a declaration of a disaster area based on 
                conditions specified in this paragraph shall be 
                required, and shall be made by the President or the 
                Administrator; or
                    ``(ii) if no declaration has been made pursuant to 
                clause (i), the Governor of a State in which a 
                significant increase in the price of heating oil, 
                natural gas, gasoline, propane, or kerosene has 
                occurred may certify to the Administration that small 
                business concerns have suffered economic injury as a 
                result of such increase and are in need of financial 
                assistance which is not otherwise available on 
                reasonable terms in that State, and upon receipt of 
                such certification, the Administration may make such 
                loans as would have been available under this paragraph 
                if a disaster declaration had been issued.
            ``(F) Notwithstanding any other provision of law, loans 
        made under this paragraph may be used by a small business 
        concern described in subparagraph (B) to convert from the use 
        of heating oil, natural gas, gasoline, propane, or kerosene to 
        a renewable or alternative energy source, including agriculture 
        and urban waste, geothermal energy, cogeneration, solar energy, 
        wind energy, or fuel cells.''.
            (2) Conforming amendments.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``, significant increase in the 
                price of heating oil, natural gas, gasoline, propane, 
                or kerosene'' after ``civil disorders''; and
                    (B) by inserting ``other'' before ``economic''.
    (b) Agricultural Producer Emergency Loans.--
            (1) In general.--Section 321(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1961(a)) is amended--
                    (A) in the first sentence--
                            (i) by striking ``operations have'' and 
                        inserting ``operations (i) have''; and
                            (ii) by inserting before ``: Provided,'' 
                        the following: ``, or (ii)(I) are owned or 
                        operated by such an applicant that is also a 
                        small business concern (as defined in section 3 
                        of the Small Business Act (15 U.S.C. 632)), and 
                        (II) have suffered or are likely to suffer 
                        substantial economic injury on or after January 
                        1, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after January 1, 
                        2005, in connection with an energy emergency 
                        declared by the President or the Secretary'';
                    (B) in the third sentence, by inserting before the 
                period at the end the following: ``or by an energy 
                emergency declared by the President or the Secretary''; 
                and
                    (C) in the fourth sentence--
                            (i) by inserting ``or energy emergency'' 
                        after ``natural disaster'' each place that term 
                        appears; and
                            (ii) by inserting ``or declaration'' after 
                        ``emergency designation''.
            (2) Funding.--Funds available on the date of enactment of 
        this Act for emergency loans under subtitle C of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
        seq.) shall be available to carry out the amendments made by 
        subparagraph (A) to meet the needs resulting from natural 
        disasters.
    (c) Guidelines and Rulemaking.--
            (1) Guidelines.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration and the Secretary of Agriculture shall each 
        issue guidelines to carry out this section and the amendments 
        made by this section, which guidelines shall become effective 
        on the date of their issuance.
            (2) Rulemaking.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration, after consultation with the Secretary of 
        Energy, shall promulgate regulations specifying the method for 
        determining a significant increase in the price of kerosene 
        under section 7(b)(4)(A)(iii)(II) of the Small Business Act (15 
        U.S.C. 636(b)(4)(A)(iii)(II)), as added by this section.
    (d) Reports.--
            (1) Small business administration.--Not later than 12 
        months after the date on which the Administrator of the Small 
        Business Administration issues guidelines under subsection 
        (c)(1), and annually thereafter, the Administrator shall submit 
        to the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives, a report on the effectiveness of the 
        assistance made available under section 7(b)(4) of the Small 
        Business Act, as added by this section, including--
                    (A) the number of small business concerns that 
                applied for a loan under such section 7(b)(4) and the 
                number of those that received such loans;
                    (B) the dollar value of those loans;
                    (C) the States in which the small business concerns 
                that received such loans are located;
                    (D) the type of energy that caused the significant 
                increase in the cost for the participating small 
                business concerns; and
                    (E) recommendations for ways to improve the 
                assistance provided under such section 7(b)(4), if any.
            (2) Department of agriculture.--Not later than 12 months 
        after the date on which the Secretary of Agriculture issues 
        guidelines under subsection (c)(1), and annually thereafter, 
        the Secretary shall submit to the Committee on Small Business 
        and Entrepreneurship and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate and to the Committee on 
        Small Business and the Committee on Agriculture of the House of 
        Representatives, a report that--
                    (A) describes the effectiveness of the assistance 
                made available under section 321(a) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961(a)), as 
                amended by this section; and
                    (B) contains recommendations for ways to improve 
                the assistance provided under such section 321(a).
    (e) Effective Date.--
            (1) Small business.--The amendments made by subsection (a) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the 
        Administrator of the Small Business Administration under 
        subsection (c)(1) or 30 days after the date of enactment of 
        this Act, with respect to assistance under section 7(b)(4) of 
        the Small Business Act, as added by this section.
            (2) Agriculture.--The amendments made by subsection (b) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the Secretary 
        of Agriculture under subsection (c)(1) or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)), as amended by this section.

                   Subtitle B--Production Incentives

SEC. 311. DEFINITION OF SECRETARY.

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

SEC. 312. 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 oil or gas. 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 a 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 businesses 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.--If 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. 313. 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)(A) 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) Royalty relief for offshore wells.--With respect to 
        royalty relief for oil or gas produced from wells located on 
        the outer Continental Shelf, the Secretary shall use authority 
        available to the Secretary as of the day before the date of 
        enactment of this Act--
                    (A) to accept and consider petitions from persons 
                seeking, and providing justification for, royalty 
                relief for 1 or more of those wells; and
                    (B) not later than 90 days after the date of 
                receipt of a petition, on a case-by-case basis--
                            (i) approve the petition and provide 
                        royalty relief or a royalty reduction for oil 
                        or gas produced from the wells covered by the 
                        petition; or
                            (ii) disapprove the petition.
            (3) 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. 314. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
              SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Definitions.--In this section:
            (1) Lease issued in shallow waters.--The term ``lease 
        issued in shallow waters'' means--
                    (A) a lease entirely in water less than 200 meters 
                deep; or
                    (B) a lease--
                            (i) partially in water less than 200 meters 
                        deep; and
                            (ii) to which no royalty relief provisions 
                        in law or lease terms apply.
            (2) Sidetrack.--
                    (A) 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.
                    (B) 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.
            (3) 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 feet true vertical depth below the datum at mean 
        sea level.
    (b) Regulations.--
            (1) In general.--Not later than 180 days after the 
        effective date of this section, 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, or regulated under, 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 
        35,000,000,000 cubic feet with respect to the production of 
        natural gas from ultra deep wells on leases issued in shallow 
        waters located in the Gulf of Mexico wholly west of 87 deg., 
        30'' West longitude that are issued before the date that is 180 
        days after the date of enactment of this Act.
            (2) Suspension volumes.--The Secretary may grant suspension 
        volumes of less than 35,000,000,000 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.
    (c) Limitation.--The Secretary shall not grant royalty incentives 
under this section if the average annual natural gas price on the New 
York Mercantile Exchange exceeds a threshold price specified, and 
adjusted for inflation, by the Secretary.
    (d) Applicability.--
            (1) In general.--Royalty incentives under this subsection 
        apply only to natural gas production from ultra deep wells that 
        are drilled after the date of enactment of this Act.
            (2) Review and suspension.--Not earlier than 10 years after 
        the date of enactment of this Act, the Secretary may--
                    (A) review the relief granted under this section; 
                and
                    (B) by regulation, modify or suspend the relief.
    (e) Effective Date.--This section takes effect on October 1, 2006.

SEC. 315. 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 meters or more but less than 800 meters;
            (2) 9,000,000 barrels of oil equivalent for each lease in 
        water depths of 800 meters or more but not greater than 1,600 
        meters; and
            (3) 12,000,000 barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.
    (c) Limitation.--The Secretary may place limitations on royalty 
relief granted under this section based on market price.

SEC. 316. 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. 317. 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.--
            ``(1) In general.--Activities'';
            (2) in subsection (b)(1) (as designated by paragraph (1)), 
        by striking ``to mitigate'' and inserting ``to prevent to the 
        extent practicable, and to mitigate,'';
            (3) by striking ``Alaska (the Reserve); (2) the'' and 
        inserting ``Alaska.
            ``(2) Certain resources and facilities.--In carrying out 
        the leasing program under this section, the Secretary shall 
        minimize, to the extent practicable, the impact to surface 
        resources and consolidate facilities.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
            (4) by striking ``Reserve; (3) the'' and inserting 
        ``Reserve.
    ``(d) First Lease Sale.--The;'';
            (5) by striking ``4332); (4) the'' and inserting ``4321 et 
        seq.).
    ``(e) Withdrawals.--The'';
            (6) by striking ``herein; (5) bidding'' and inserting 
        ``under this section.
    ``(f) Bidding Systems.--Bidding'';
            (7) by striking ``629); (6) lease'' and inserting ``629).
    ``(g) Geological Structures.--Lease'';
            (8) by striking ``structures; (7) the'' and inserting 
        ``structures.
    ``(h) Size of Lease Tracts.--The'';
            (9) 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 or drilling or reworking operations, as 
        approved by the Secretary, are conducted on the leased land.
            ``(2) 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 unless the lessee is allowed a reasonable time, which 
        shall be not less than 60 days after notice by registered or 
        certified mail, within which to place the lands in producing 
        status or unless, after such status is established, production 
        is discontinued on the leased premises without permission 
        granted by the Secretary under the provisions of this Act.
            ``(3) Renewal of leases without discoveries.--At the end of 
        the primary term of a lease, the Secretary shall renew for one 
        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, 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.
    ``(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 shall, among 
        other things, examine 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 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,'';
            (10) by striking ``When separate'' and inserting the 
        following:
            ``(5) Pooling.--If separate'';
            (11) by inserting ``(in consultation with the owners of the 
        other land)'' after ``determined by the Secretary of the 
        Interior'';
            (12) 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.'';
            (13) by striking ``The Secretary is authorized to'' and 
        inserting the following:
            ``(2) Suspension of operations and production.--The 
        Secretary may'';
            (14) by striking ``In the event'' and inserting the 
        following:
            ``(3) Suspension of payments.--If'';
            (15) by striking ``thereto; and (11) all'' and inserting 
        ``to the lease.
    ``(l) Receipts.--All'';
            (16) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively;
            (17) by striking ``Any agency'' and inserting the 
        following:
    ``(m) Explorations.--Any agency'';
            (18) by striking ``Any action'' and inserting the 
        following:
    ``(n) Environmental Impact Statements.--
            ``(1) Judicial review.--Any action'';
            (19) by striking ``The detailed'' and inserting the 
        following:
            ``(2) Initial lease sales.--The detailed'';
            (20) 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
            (21) 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)), 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').
            ``(2) Partial conveyance.--
                    ``(A) In general.--In a case in which a conveyance 
                of a subsurface estate described in paragraph (1) 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.
                    ``(B) Segregation of lease.--In a case described in 
                subparagraph (A), 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.
                    ``(C) No change in lease obligations.--The 
                segregation of the lease described in subparagraph 
                (B)(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).
            ``(3) Authority to manage federally owned surface estate.--
        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. 318. 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. 319. 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) 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.
    (g) 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. 320. 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)'';
            (2) in the first sentence of subparagraph (A) (as 
        designated by paragraph (1)), by striking ``they shall be'' and 
        inserting ``the lands may be''; and
            (3) 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 described in subparagraph (B) shall have provisions 
addressing the appropriate accommodation of resources.
    ``(D) A lease issued for tar sand development 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.''.
    (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 ``Thereafter,''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary of the Interior shall issue final 
regulations to implement the amendments made by this section.

SEC. 321. 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, or 
                production 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.--The Secretary shall establish royalties, 
        fees, rentals, bonus, or other payments to ensure a fair return 
        to the United States for any lease, easement, or right-of-way 
        granted under this subsection.
            ``(3) Competitive or noncompetitive basis.--Except with 
        respect to projects that meet the criteria established under 
        section 321(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, 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.

SEC. 322. 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. 323. 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. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

    (a) Assessment.--The Secretary 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 (2); and
            (6) an island-by-island approach to--
                    (A) the development of hydrogen from renewable 
                resources; and
                    (B) the application of hydrogen to the energy needs 
                of Hawaii
    (b) Contracting Authority.--The Secretary may carry out the 
assessment under subsection (a) directly or, in whole or in part, 
through 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 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. 325. 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. 326. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

    (a) In General.--The Secretary of the Interior 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 of Interior 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.

SEC. 327. REVIEW AND DEMONSTRATION PROGRAM FOR OIL AND NATURAL GAS 
              PRODUCTION.

    (a) Review.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary of the Interior, in 
        consultation with the Secretary of Energy (referred to in this 
        section as the ``Secretary''), shall carry out a review of, and 
        submit to Congress a report on opportunities to enhance 
        production of oil and natural gas from public land and the 
        outer Continental Shelf, and increase sequestration of carbon 
        dioxide through the provision of royalty or other production 
        incentives to lessees that inject carbon dioxide as a means of 
        enhanced recovery.
            (2) Components.--The Secretary of the Interior shall 
        describe in the review and report under paragraph (1)--
                    (A) eligibility requirements for incentives;
                    (B) the appropriate level of royalty relief, if 
                any;
                    (C) other appropriate production incentives, if 
                any;
                    (D) an estimate of the increased quantity of oil 
                and gas production that could be achieved through 
                implementation of those incentives;
                    (E) an estimate of the quantity of carbon 
                sequestration that could be achieved through 
                implementation of those incentives;
                    (F) practices (and the extent of the use of the 
                practices) as of the date of enactment of this Act that 
                rely on carbon dioxide injection for enhanced oil and 
                gas recovery; and
                    (G) any recommendations for implementation of 
                royalty relief or other production incentives, 
                including--
                            (i) the period of time during which those 
                        incentives should be available; and
                            (ii) any geographic or other limitations 
                        that should apply to the incentives.
    (b) Demonstration Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary 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 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 shall--
                    (A) consider the previous experience with similar 
                projects of each applicant;
                    (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 shall not 
                provide more than $3,000,000 in Federal assistance 
                under this subsection to any applicant.
                    (B) Cost sharing.--The Secretary shall require 
                cost-sharing in accordance with section 1002.
                    (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 
        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 parties, 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 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, 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.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 328. NO OIL PRODUCING AND EXPORTING CARTELS.

    (a) Short Title.--This section may be cited as the ``No Oil 
Producing and Exporting Cartels Act of 2005'' or ``NOPEC''.
    (b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is amended 
by adding after section 7 the following:

``SEC. 7A. OIL PRODUCING CARTELS.

    ``(a) In General.--It shall be illegal and a violation of this Act 
for any foreign state, or any instrumentality or agent of any foreign 
state, to act collectively or in combination with any other foreign 
state, any instrumentality or agent of any other foreign state, or any 
other person, whether by cartel or any other association or form of 
cooperation or joint action--
            ``(1) to limit the production or distribution of oil, 
        natural gas, or any other petroleum product;
            ``(2) to set or maintain the price of oil, natural gas, or 
        any petroleum product; or
            ``(3) to otherwise take any action in restraint of trade 
        for oil, natural gas, or any petroleum product;
when such action, combination, or collective action has a direct, 
substantial, and reasonably foreseeable effect on the market, supply, 
price, or distribution of oil, natural gas, or other petroleum product 
in the United States.
    ``(b) Sovereign Immunity.--A foreign state engaged in conduct in 
violation of subsection (a) shall not be immune under the doctrine of 
sovereign immunity from the jurisdiction or judgments of the courts of 
the United States in any action brought to enforce this section.
    ``(c) Inapplicability of Act of State Doctrine.--No court of the 
United States shall decline, based on the act of state doctrine, to 
make a determination on the merits in an action brought under this 
section.
    ``(d) Enforcement.--The Attorney General of the United States and 
the Federal Trade Commission may bring an action to enforce this 
section in any district court of the United States as provided under 
the antitrust laws.''.
    (c) Sovereign Immunity.--Section 1605(a) of title 28, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (7), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(8) in which the action is brought under section 7A of 
        the Sherman Act.''.

                   Subtitle C--Access to Federal Land

SEC. 341. FEDERAL ONSHORE OIL AND GAS LEASING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--The Secretary 
of the Interior shall make the necessary arrangements with the National 
Academy of Public Administration to commission the Academy to perform a 
review of Federal onshore oil and gas leasing practices. The Secretary 
of the Interior shall conduct an internal review concurrent with the 
work of the National Academy of Public Administration. The reviews 
shall include the following:
            (1) The process by which Federal land managers accept or 
        reject an offer to lease, including the timeframes in which 
        such offers are acted upon, and any recommendations for 
        improving and expediting the process.
            (2) The process for considering applications for permits to 
        drill, including the timeframes in which such applications are 
        considered, and any recommendations for improving and 
        expediting the process.
            (3) The process for considering surface use plans of 
        operation, including the timeframes in which such plans are 
        considered, and any recommendations for improving and 
        expediting the process.
            (4) The process for administrative appeal of decisions or 
        orders of officers or employees of the Bureau of Land 
        Management with respect to a Federal oil or gas lease, 
        including the timeframes in which such appeals are heard and 
        decided, and any recommendations for improving and expediting 
        the process.
            (5) The process by which Federal land managers identify 
        stipulations to address site-specific concerns and conditions, 
        including those relating to the environment and resource use 
        conflicts, whether stipulations are effective in addressing 
        resource values, and any recommendations for expediting and 
        improving the identification and effectiveness of stipulations.
            (6) The process by which the Federal land management 
        agencies coordinate planning and analysis with planning of 
        Federal, State, and local agencies having jurisdiction over 
        adjacent areas and other land uses, and any recommendations for 
        improving and expediting the process.
            (7) The documentation provided to lease applicants and 
        lessees with respect to determinations to reject lease 
        applications or to require modification of proposed surface use 
        plans of operation and recommendations regarding improvement of 
        such documentation to more clearly set forth the basis for the 
        decision.
            (8) The adequacy of resources available to the Secretary of 
        the Interior for administering the Federal onshore oil and gas 
        leasing program.
            (9) Actions taken by the Secretary under section 3 of 
        Executive Order No. 13212 (42 U.S.C. 13201 note).
            (10) Actions taken by, or plans of, the Secretary to 
        improve the Federal onshore oil and gas leasing program.
    (b) Report.--The Secretary of the Interior and the National Academy 
of Public Administration shall report to the Committee on Resources of 
the House of Representatives and to the Committee on Energy and Natural 
Resources of the Senate not later than 18 months after the date of the 
enactment of this Act, summarizing the findings of their respective 
reviews undertaken pursuant to this section and making recommendations 
with respect to improvements in the Federal onshore oil and gas leasing 
program.

SEC. 342. 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) 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 
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. 343. 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, including 
                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. 344. 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) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary such sums as are necessary to carry out this 
        section for each of fiscal years 2006 through 2010.
            (2) 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--
                    (A) the United States Fish and Wildlife Service;
                    (B) the Bureau of Indian Affairs;
                    (C) the Forest Service;
                    (D) the Environmental Protection Agency;
                    (E) the Corps of Engineers; and
                    (F) the States of Wyoming, Montana, Colorado, Utah, 
                and New Mexico.
    (h) 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. 345. ENERGY FACILITY RIGHTS-OF-WAYS AND CORRIDORS ON FEDERAL LAND.

    (a) Definitions.--In this section:
            (1) Corridor.--In this section and section 503 of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1763), the term ``corridor'' means--
                    (A) a linear strip of land--
                            (i) with a width determined with 
                        consideration given to technological, 
                        environmental, and topographical factors; and
                            (ii) that contains, or may in the future 
                        contain, 1 or more utility facilities;
                    (B) a land use designation that is established--
                            (i) by law;
                            (ii) by order of the head of a Federal 
                        agency;
                            (iii) through the land use planning 
                        process; or
                            (iv) by other management decision; and
                    (C) a designation made for the purpose of 
                establishing the preferred location of a compatible 
                utility facility.
            (2) Federal authorization.--
                    (A) In general.--The term ``Federal authorization'' 
                means any authorization required under Federal law in 
                order to site a utility facility.
                    (B) Inclusions.--The term ``Federal authorization'' 
                includes such permits, special use authorizations, 
                certifications, opinions, or other approvals as may be 
                required, that are issued by a Federal agency.
            (3) Federal land.--
                    (A) In general.--The term ``Federal land'' means 
                all land owned by the United States.
                    (B) Exclusions.--The term ``Federal land'' does not 
                include land--
                            (i) within the National Park System;
                            (ii) within the National Wilderness 
                        Preservation System;
                            (iii) designated as a National Monument;
                            (iv) held in trust for an Indian or Indian 
                        tribe; or
                            (v) on the outer Continental Shelf.
            (4) Utility corridor.--The term ``utility corridor'' means 
        any linear strip of land across Federal land referred to in 
        subsection (b) of approved width, but limited for use by a 
        utility facility by technological, environmental, or 
        topographical factors.
            (5) Utility facility.--The term ``utility facility'' means 
        any privately-, publicly-, or cooperatively-owned line, 
        facility, or system--
                    (A) for the transportation of--
                            (i) oil or natural gas, synthetic liquid or 
                        gaseous fuel, or any refined product produced 
                        from any of those materials; or
                            (ii) products in support of production, or 
                        for storage or terminal facilities in 
                        connection with production; or
                    (B) for the generation, transmission, or 
                distribution of electric energy.
    (b) Utility Corridors.--
            (1) In general.--Not later than 2 years after the document 
        described in subsection (c)(3) is completed, the Secretary of 
        the Interior, with respect to public lands (as defined in 
        section 103(e) of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1702(e)), and the Secretary of Agriculture, 
        with respect to National Forest System land, shall designate 
        utility corridors pursuant to--
                    (A) section 503 of the Federal Land Policy and 
                Management Act (43 U.S.C. 1763) in the 11 contiguous 
                Western States (as identified in section 103(o) of that 
                Act (43 U.S.C. 1702(o))); and
                    (B) relevant departmental and agency land use and 
                resource management plans or equivalent plans.
            (2) Coordination.--The Secretary shall coordinate with 
        affected Federal agencies to jointly--
                    (A) identify potential utility corridors on Federal 
                land in States not described in paragraph (1)(A); and
                    (B) develop a schedule for the designation, 
                environmental review, and incorporation of the utility 
                corridors into relevant departmental and agency land 
                use and resource management plans or equivalent plans.
            (3) Specifications of corridor.--A corridor designated 
        under this section shall specify the centerline, width, and 
        compatible uses of the corridor.
    (c) Federal Permit Coordination.--
            (1) In general.--The Secretary shall enter into a 
        memorandum of understanding with the Secretary of the Interior, 
        the Secretary of Agriculture, and the Secretary of Defense for 
        the purpose of coordinating all applicable Federal 
        authorizations and environmental reviews relating to a proposed 
        or existing utility facility.
            (2) Additional entities.--To the maximum extent practicable 
        under applicable law, the Secretary shall coordinate the 
        process developed through the memorandum of understanding under 
        paragraph (1) with any Indian tribes, multistate entities, and 
        State agencies that are responsible for conducting any separate 
        permitting and environmental reviews of the affected utility 
        facility to ensure timely review and permit decisions.
            (3) Contents of mou.--The memorandum of understanding under 
        paragraph (1) shall provide for--
                    (A) coordination, among affected Federal agencies, 
                to ensure that the necessary Federal authorizations--
                            (i) are conducted concurrently with 
                        applicable State siting processes; and
                            (ii) are considered within a specific time 
                        frame identified within the memorandum of 
                        understanding;
                    (B) an agreement among the affected Federal 
                agencies to prepare a programmatic environmental review 
                document to be used as the underlying basis for all 
                Federal authorization decisions; and
                    (C) a process to expedite applications to construct 
                or modify utility facilities within utility corridors.

SEC. 346. OIL SHALE AND TAR SANDS.

    (a) Declaration of Policy.--Congress declares that it is the policy 
of the United States that--
            (1) United States oil shale and tar sands are strategically 
        important domestic resources that should be developed through 
        methods that help reduce the growing dependence of the United 
        States on politically and economically unstable sources of 
        foreign oil imports;
            (2) the development of oil shale and tar sands, for 
        research and commercial development, should be conducted in an 
        economically feasible and environmentally sound manner, using 
        practices that minimize impacts;
            (3) development should occur at a deliberate pace, with an 
        emphasis on sustainability, to benefit the United States while 
        taking into account affected States and communities; and
            (4) the Secretary of the Interior should work toward 
        developing a commercial leasing program for oil shale and tar 
        sands so that such a program can be implemented when production 
        technologies are commercially viable.
    (b) Leasing Program.--
            (1) Research and development.--
                    (A) In general.--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 1 year 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, for a period determined by 
                the Secretary, make available for leasing such land as 
                the Secretary considers to be necessary to conduct 
                research and development activities with respect to 
                innovative technologies for the recovery of shale oil 
                from oil shale resources on public land.
                    (B) Application.--The Secretary may offer to lease 
                the land to persons that submit an application for the 
                lease, if the Secretary determines that there is no 
                competitive interest in the land.
                    (C) Administration.--In carrying out this 
                paragraph, the Secretary shall--
                            (i) provide for environmentally sound 
                        research and development of oil shale;
                            (ii) provide for an appropriate return to 
                        the public, as determined by the Secretary;
                            (iii) before carrying out any activity that 
                        will disturb the surface of land, provide for 
                        an adequate bond, surety, or other financial 
                        arrangement to ensure reclamation;
                            (iv) provide for a primary lease term of 10 
                        years, after which the lease term may be 
                        extended if the Secretary determines that 
                        diligent research and development activities 
                        are occurring on the land leased;
                            (v) require the owner or operator of a 
                        project under this subsection, within such 
                        period as the Secretary may determine--
                                    (I) to submit a plan of operations;
                                    (II) to develop an environmental 
                                protection plan; and
                                    (III) to undertake diligent 
                                research and development activities;
                            (vi) ensure that leases under this section 
                        are not larger than necessary to conduct 
                        research and development activities under an 
                        application under subparagraph (B);
                            (vii) provide for consultation with 
                        affected State and local governments; and
                            (viii) provide for such requirements as the 
                        Secretary determines to be in the public 
                        interest.
            (2) Commercial leasing.--Prior to conducting commercial 
        leasing, the Secretary shall carry out--
                    (A) the programmatic environmental impact statement 
                required under subsection (c); and
                    (B) the analysis required under subsection (d).
            (3) Moneys received.--Any moneys received from a leasing 
        activity under this subsection shall be paid in accordance with 
        section 35 of the Mineral Leasing Act (30 U.S.C. 191).
    (c) 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 that analyzes potential leasing for 
commercial development of oil shale resources on public land.
    (d) Analysis of Potential Leasing Program.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report (including recommendations) analyzing a potential 
        leasing program for the commercial development of oil shale on 
        public land.
            (2) Inclusions.--The report under paragraph (1) shall 
        include--
                    (A) an analysis of technologies and research and 
                development programs for the production of oil and 
                other materials from oil shale and tar sands in 
                existence on the date on which the report is prepared;
                    (B) an analysis of--
                            (i) whether leases under the program should 
                        be issued on a competitive basis;
                            (ii) the term of the leases;
                            (iii) the maximum size of the leases;
                            (iv) the use and distribution of bonus bid 
                        lease payments;
                            (v) the royalty rate to be applied, 
                        including whether a sliding scale royalty rate 
                        should be used;
                            (vi) whether an opportunity should be 
                        provided to convert research and development 
                        leases into leases for commercial development, 
                        including the terms and conditions that should 
                        apply to the conversion;
                            (vii) the maximum number of leases and 
                        maximum acreage to be leased under the leasing 
                        program to an individual; and
                            (viii) any infrastructure required to 
                        support oil shale development in industry and 
                        communities;
                    (C) an identification of events that should serve 
                as a precursor to commercial leasing, including 
                development of environmentally and commercially viable 
                technologies, and the completion of land use planning 
                and environmental reviews; and
                    (D) an analysis, developed in conjunction with the 
                appropriate State water resource agencies, of the 
                demand for, and availability of, water with respect to 
                the development of oil shale and tar sands.
            (3) Public participation.--In preparing the report under 
        this subsection, the Secretary shall provide notice to, and 
        solicit comment from--
                    (A) the public;
                    (B) representatives of local governments;
                    (C) representatives of industry; and
                    (D) other interested parties.
            (4) Participation by certain states.--In preparing the 
        report under this subsection, the Secretary shall--
                    (A) provide notice to, and solicit comment from, 
                the Governors of the States of Colorado, Utah, and 
                Wyoming; and
                    (B) incorporate into the report submitted to 
                Congress under paragraph (1) any response of the 
                Secretary to those comments.
    (e) Oil Shale and Tar Sands Task Force.--
            (1) Establishment.--The Secretary of Energy, in cooperation 
        with the Secretary of the Interior, shall establish an Oil 
        Shale and Tar Sands Task Force to develop a program to 
        coordinate and accelerate the commercial development of oil 
        shale and tar sands in an integrated manner.
            (2) Composition.--The Task Force shall be composed of--
                    (A) the Secretary of Energy (or the designee of the 
                Secretary of Energy);
                    (B) the Secretary of Defense (or the designee of 
                the Secretary of Defense);
                    (C) the Secretary of the Interior (or the designee 
                of the Secretary of the Interior);
                    (D) the Governors of the affected States; and
                    (E) representatives of local governments in 
                affected areas.
            (3) Development of a 5-year plan.--
                    (A) In general.--The Task Force shall formulate a 
                5-year plan to promote the development of oil shale and 
                tar sands.
                    (B) Components.--In formulating the plan, the Task 
                Force shall--
                            (i) identify public actions that are 
                        required to stimulate prudent development of 
                        oil shale and tar sands;
                            (ii) analyze the costs and benefits of 
                        those actions;
                            (iii) make recommendations concerning 
                        specific actions that should be taken to 
                        stimulate prudent development of oil shale and 
                        tar sands, including economic, investment, tax, 
                        technology, research and development, 
                        infrastructure, environmental, education, and 
                        socio-economic actions;
                            (iv) consult with representatives of 
                        industry and other stakeholders;
                            (v) provide notice and opportunity for 
                        public comment on the plan;
                            (vi) identify oil shale and tar sands 
                        technologies that--
                                    (I) are ready for pilot plant and 
                                semiworks development; and
                                    (II) have a high probability of 
                                leading to advanced technology for 
                                first- or second-generation commercial 
                                production; and
                            (vii) assess the availability of water from 
                        the Green River Formation to meet the potential 
                        needs of oil shale and tar sands development.
            (4) National program office.--The Task Force shall analyze 
        and make recommendations regarding the need for a national 
        program office to administer the plan.
            (5) Partnership.--The Task Force shall recommend whether to 
        initiate a partnership with Alberta, Canada, for purposes of 
        sharing information relating to the development and production 
        of oil from tar sands.
            (6) 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 and contains the 5-year plan.
                    (B) Subsequent reports.--The Secretary of Energy 
                shall provide an annual report describing the progress 
                in carrying out the plan for each of the 5 years 
                following submission of the report provided for in 
                subparagraph (A).
    (f) Mineral Leasing Act Amendments.--Section 21(a) of the Mineral 
Leasing Act (30 U.S.C. 241(a)) is amended--
            (1) by designating the first, second, and third sentences 
        as paragraphs (1), (2), and (3), respectively; and
            (2) in paragraph (3) (as designated by paragraph (1))--
                    (A) by striking ``rate of 50 cents per acre'' and 
                inserting ``rate of $2.00 per acre''; and
                    (B) in the last proviso--
                            (i) by striking ``That not more than one 
                        lease shall be granted under this section to 
                        any'' and inserting ``That no''; and
                            (ii) by striking ``except that with respect 
                        to leases for'' and inserting ``shall acquire 
                        or hold more than 25,000 acres of oil shale 
                        leases in the United States. For''.
    (g) 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 in accordance with 
                section 1002.
    (h) Technical Assistance.--
            (1) In general.--The Secretary of Energy may provide 
        technical assistance for the purpose of overcoming technical 
        challenges to the development of oil shale and tar sands 
        technologies for application in the United States.
            (2) Administration.--The Secretary of Energy may provide 
        technical assistance under this section on a cost-shared basis 
        in accordance with section 1002.
    (i) National Oil Shale Assessment.--
            (1) Assessment.--
                    (A) In general.--The Secretary shall carry out a 
                national assessment of oil shale resources for the 
                purposes of evaluating and mapping oil shale deposits, 
                in the geographic areas described in subparagraph (B).
                    (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 of the eastern 
                        United States; and
                            (iii) any remaining area in the central and 
                        western United States (including the State of 
                        Alaska) that contains oil shale, 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.
    (j) State Water Rights.--Nothing in this section preempts or 
affects any State water law or interstate compact relating to water.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 347. 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. 348. REINSTATEMENT OF LEASES.

    Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act (30 
U.S.C. 188(d)(2)(B)), the Secretary 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.

                      Subtitle D--Coastal Programs

SEC. 371. 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 1 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