H.R. 238 — Energy Research, Development, Demonstration, and Commercial Application Act of 2003

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 238 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 238

To provide for Federal energy research, development, demonstration, and 
       commercial application activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 8, 2003

Mr. Boehlert (for himself and Mr. Hall) introduced the following bill; 
which was referred to the Committee on Science, and in addition to the 
 Committee on Resources, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide for Federal energy research, development, demonstration, and 
       commercial application activities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003''.

                   TITLE I--RESEARCH AND DEVELOPMENT

SEC. 101. PURPOSES.

    The purposes of this title are to--
            (1) contribute to a national energy strategy through an 
        energy research and development program that supports basic 
        energy research and provides mechanisms to develop, 
        demonstrate, and promote the commercial application of new 
        energy technologies in partnership with industry;
            (2) protect and strengthen the Nation's economy, standard 
        of living, and national security by reducing dependence on 
        imported energy;
            (3) meet future needs for energy services at the lowest 
        total cost to the Nation, giving balanced and comprehensive 
        consideration to technologies that improve the efficiency of 
        energy end uses and that enhance energy supply;
            (4) reduce the environmental impacts of energy production, 
        distribution, transportation, and use;
            (5) help increase domestic production of energy, increase 
        the availability of hydrocarbon reserves, and lower energy 
        prices; and
            (6) stimulate economic growth and enhance the ability of 
        United States companies to compete in future markets for 
        advanced energy technologies.

SEC. 102. GOALS.

    (a) In General.--In order to achieve the purposes of this title, 
the Secretary shall conduct a balanced set of programs of energy 
research, development, demonstration, and commercial application, 
guided by the following goals:
            (1) Energy efficiency.--
                    (A) Buildings.--Develop, in partnership with 
                industry, technologies, designs, and production methods 
                that will enable an average 25 percent increase by 2010 
                in the energy efficiency of all new buildings, as 
                compared to a new building in 1996.
                    (B) Industry.--Develop, in partnership with 
                industry, technologies, designs, and production methods 
                that will enable the energy intensity of the major 
                energy-consuming industries to improve by at least 25 
                percent by 2010 as compared to 1991.
                    (C) Vehicles.--Develop, in partnership with 
                industry, technologies that will enable--
                            (i) by 2010, mid-sized passenger 
                        automobiles with a fuel economy of 80 miles per 
                        gallon;
                            (ii) by 2010, light trucks (classes 1 and 
                        2a) with a fuel economy of 60 miles per gallon;
                            (iii) by 2010, medium trucks and buses 
                        (classes 2b through 6 and class 8 transit 
                        buses) with a fuel economy, in ton-miles per 
                        gallon for trucks and passenger miles per 
                        gallon for buses, that is 3 times that of year 
                        2000 equivalent vehicles;
                            (iv) by 2010, heavy trucks (classes 7 and 
                        8) with a fuel economy, in ton-miles per 
                        gallon, that is 2 times that of year 2000 
                        equivalent vehicles; and
                            (v) by 2015, mid-sized fuel cell powered 
                        passenger vehicles with a gasoline equivalent 
                        fuel economy of 110 miles per gallon.
            (2) Distributed energy and electric energy systems.--
                    (A) Distributed generation.--Develop, in 
                partnership with industry, technologies based on 
                natural gas that achieve electricity generating 
                efficiencies greater than 40 percent by 2015 for on-
                site, or distributed, generation technologies.
                    (B) Electric energy systems and storage.--Develop, 
                in partnership with industry--
                            (i) technologies for generators and 
                        transmission, distribution, and storage systems 
                        that combine high capacity with high efficiency 
                        (particularly for electric transmission 
                        facilities in rural and remote areas);
                            (ii) new transmission and distribution 
                        technologies, including flexible alternating 
                        current transmission systems, composite 
                        conductor materials, advanced protection 
                        devices, and controllers;
                            (iii) technologies for interconnection of 
                        distributed energy resources with electric 
                        power systems;
                            (iv) high-temperature superconducting 
                        materials for power delivery equipment such as 
                        transmission and distribution cables, 
                        transformers, and generators; and
                            (v) real-time transmission and distribution 
                        system control technologies that provide for 
                        continual exchange of information between 
                        generation, transmission, distribution, and 
                        end-user facilities.
            (3) Renewable energy.--
                    (A) Wind power.--Develop, in partnership with 
                industry, technologies and designs that will--
                            (i) reduce the cost of wind power by 40 
                        percent by 2007 as compared to 2000; and
                            (ii) expand utilization of class 3 and 4 
                        winds.
                    (B) Photovoltaics.--Develop, in partnership with 
                industry, total photovoltaic systems with installed 
                costs of $4000 per peak kilowatt by 2005 and $2000 per 
                peak kilowatt by 2015.
                    (C) Solar thermal electric systems.--Develop, in 
                partnership with industry, solar power technologies 
                (including baseload solar power) that combine high-
                efficiency and high-temperature receivers with advanced 
                thermal storage and power cycles to accommodate peak 
                loads and reduce lifecycle costs.
                    (D) Geothermal energy.--Develop, in partnership 
                with industry, technologies and processes based on 
                advanced hydrothermal systems and advanced heat and 
                power systems, including geothermal or ground source 
                heat pump technology, with a specific focus on--
                            (i) improving exploration and 
                        characterization technology to increase the 
                        probability of drilling successful wells from 
                        20 percent to 40 percent by 2006;
                            (ii) reducing the cost of drilling by 2008 
                        to an average cost of $150 per foot; and
                            (iii) developing enhanced geothermal 
                        systems technology with the potential to double 
                        the usable geothermal resource base, as 
                        compared to the date of enactment of this Act.
                    (E) Hydrogen.--Carry out the Spark M. Matsunaga 
                Hydrogen Research, Development, and Demonstration Act 
                of 1990 and title II of the Hydrogen Future Act of 
                1996, as amended by this Act.
                    (F) Biomass-based power systems.--Develop, in 
                partnership with industry, integrated power generating 
                systems, advanced conversion, and feedstock 
                technologies capable of producing electric power that 
                is cost-competitive with fossil-fuel generated 
                electricity by 2010, through co-production of fuels, 
                chemicals, and other products under subparagraph (G).
                    (G) Biofuels.--Develop, in partnership with 
                industry, new and emerging technologies and 
                biotechnology processes capable of making--
                            (i) gaseous and liquid biofuels that are 
                        price-competitive, by 2010, with gasoline or 
                        diesel in either internal combustion engines or 
                        fuel cells; and
                            (ii) biofuels, biobased polymers, and 
                        chemicals, including those derived from 
                        lignocellulosic feedstock, with particular 
                        emphasis on developing biorefineries that use 
                        enzyme-based processing systems.
                    (H) Hydropower.--Develop, in partnership with 
                industry, a new generation of turbine technologies that 
                will increase generating capacity and be less damaging 
                to fish and aquatic ecosystems.
            (4) Fossil energy.--
                    (A) Power generation.--Develop, in partnership with 
                industry, technologies, including precombustion 
                technologies, by 2015 with the capability of 
                realizing--
                            (i) electricity generating efficiencies of 
                        75 percent (lower heating value) for natural 
                        gas; and
                            (ii) widespread commercial application of 
                        combined heat and power with thermal 
                        efficiencies of more than 85 percent (higher 
                        heating value).
                    (B) Offshore oil and gas resources.--Develop, in 
                partnership with industry, technologies to--
                            (i) extract methane hydrates in coastal 
                        waters of the United States; and
                            (ii) develop natural gas and oil reserves 
                        in the ultra-deepwater of the Central and 
                        Western Gulf of Mexico, with a focus on 
                        improving, while lowering costs and reducing 
                        environmental impacts, the safety and 
                        efficiency of--
                                    (I) the recovery of ultra-deepwater 
                                resources; and
                                    (II) sub-sea production technology 
                                used for such recovery.
                    (C) Onshore oil and gas resources.--Advance the 
                science and technology available to domestic onshore 
                petroleum producers, particularly independent producers 
                of oil or gas, through--
                            (i) advances in technology for exploration 
                        and production of domestic petroleum resources, 
                        particularly those not accessible with current 
                        technology;
                            (ii) improvement in the ability to extract 
                        hydrocarbons (including heavy oil) from known 
                        reservoirs and classes of reservoirs; and
                            (iii) development of technologies and 
                        practices that reduce the impact on the 
                        environment from petroleum exploration and 
                        production.
                    (D) Transportation fuels.--Increase the 
                availability of transportation fuels by focusing 
                research on--
                            (i) reducing the cost of producing 
                        transportation fuels from coal and natural gas; 
                        and
                            (ii) indirect liquefaction of coal and 
                        biomass.
            (5) Nuclear energy.--
                    (A) Existing reactors.--Support research to extend 
                the lifetimes of existing United States nuclear power 
                reactors, and increase their reliability while 
                optimizing their current operations for greater 
                efficiencies.
                    (B) Advanced reactors.--Develop, in partnership 
                with industry--
                            (i) advanced, efficient, lower cost, and 
                        passively safe reactor designs;
                            (ii) proliferation-resistant and high-burn-
                        up nuclear fuels; and
                            (iii) technologies to minimize generation 
                        of radioactive materials and improve the 
                        management of nuclear waste.
                    (C) Nuclear scientists and engineers.--Attract new 
                students and faculty to the nuclear sciences, nuclear 
                engineering, and related fields (including health 
                physics, nuclear medicine, nuclear chemistry, and 
                radiochemistry).
    (b) Review and Assessment of Goals.--
            (1) Evaluation and modification.--Based on amounts 
        appropriated and developments in science and technology, the 
        Secretary shall evaluate the goals set forth in subsection (a) 
        at least once every 5 years, and shall report to the Congress 
        any proposed modifications to the goals.
            (2) Consultation.--In evaluating and proposing 
        modifications to the goals as provided in paragraph (1), the 
        Secretary shall solicit public input.
            (3) Public comment.--(A) After consultation under paragraph 
        (2), the Secretary shall publish in the Federal Register a set 
        of draft modifications to the goals for public comment.
            (B) Not later than 60 days after the date of publication of 
        draft modifications under subparagraph (A), and after 
        consideration of any public comments received, the Secretary 
        shall publish the final modifications, including a summary of 
        the public comments received, in the Federal Register.
            (4) Effective date.--No modification to goals under this 
        section shall take effect before the date which is 5 years 
        after the date of enactment of this Act.
    (c) Effect of Goals.--(1) Nothing in paragraphs (1) through (5) of 
subsection (a), or any subsequent modification to the goals therein 
pursuant to subsection (b), shall--
            (A) create any new--
                    (i) authority for any Federal agency; or
                    (ii) requirement for any other person;
            (B) be used by a Federal agency to support the 
        establishment of regulatory standards or regulatory 
        requirements; or
            (C) alter the authority of the Secretary to make grants or 
        other awards.
    (2) Nothing in this subsection shall be construed to limit the 
authority of the Secretary to impose conditions on grants or other 
awards based on the goals in subsection (a) or any subsequent 
modification thereto.

SEC. 103. DEFINITIONS.

    For purposes of this title:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary of 
        Energy by the Department of Energy Organization Act (42 U.S.C. 
        7101 et seq.) or other law.
            (3) Independent producer of oil or gas.--
                    (A) In general.--The term ``independent producer of 
                oil or gas'' means any person who produces oil or gas 
                other than a person to whom subsection (c) of section 
                613A of the Internal Revenue Code of 1986 does not 
                apply by reason of paragraph (2) (relating to certain 
                retailers) or paragraph (4) (relating to certain 
                refiners) of section 613A(d) of such Code.
                    (B) Rules for applying paragraphs (2) and (4) of 
                section 613a(d).--For purposes of subparagraph (A), 
                paragraphs (2) and (4) of section 613A(d) of the 
                Internal Revenue Code of 1986 shall be applied by 
                substituting ``calendar year'' for ``taxable year'' 
                each place it appears in such paragraphs.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (5) Joint venture.--The term ``joint venture'' has the 
        meaning given that term under section 2 of the National 
        Cooperative Research and Production Act of 1993 (15 U.S.C. 
        4301).
            (6) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Idaho National Engineering and Environmental 
                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) Thomas Jefferson National Accelerator Facility.
            (7) Nonmilitary energy laboratory.--The term ``nonmilitary 
        energy laboratory'' means any of the following laboratories of 
        the Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Lawrence Berkeley National Laboratory.
                    (F) Oak Ridge National Laboratory.
                    (G) Pacific Northwest National Laboratory.
                    (H) Princeton Plasma Physics Laboratory.
                    (I) Stanford Linear Accelerator Center.
                    (J) Thomas Jefferson National Accelerator Facility.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) Single-purpose research facility.--The term ``single-
        purpose research facility'' means any of the following 
        primarily single-purpose entities owned by the Department:
                    (A) East Tennessee Technology Park.
                    (B) Environmental Measurement Laboratory.
                    (C) Fernald Environmental Management Project.
                    (D) Kansas City Plant.
                    (E) Nevada Test Site.
                    (F) New Brunswick Laboratory.
                    (G) Pantex Weapons Facility.
                    (H) Savannah River Technology Center.
                    (I) Stanford Linear Accelerator Center.
                    (J) Y-12 facility at Oak Ridge National Laboratory.
                    (K) Waste Isolation Pilot Plant.
                    (L) Any other similar organization of the 
                Department designated by the Secretary that engages in 
                technology transfer, partnering, or licensing 
                activities.

                     Subtitle A--Energy Efficiency

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 104. ENERGY EFFICIENCY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for energy efficiency and conservation 
research, development, demonstration, and commercial application 
activities, including activities authorized under this subtitle:
            (1) For fiscal year 2003, $560,000,000.
            (2) For fiscal year 2004, $616,000,000.
            (3) For fiscal year 2005, $695,000,000.
            (4) For fiscal year 2006, $772,000,000.
            (5) For fiscal year 2007, $865,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Lighting systems.--For activities under section 105, 
        $10,000,000 for fiscal year 2003 and $50,000,000 for each of 
        fiscal years 2004 through 2007.
            (2) Secondary electric vehicle battery use program.--For 
        activities under section 108--
                    (A) for fiscal year 2003, $1,000,000;
                    (B) for fiscal year 2004, $4,000,000;
                    (C) for fiscal year 2005, $7,000,000;
                    (D) for fiscal year 2006, $7,000,000; and
                    (E) for fiscal year 2007, $7,000,000.
            (3) Energy efficiency science initiative.--For activities 
        under section 110--
                    (A) for fiscal year 2003, $15,000,000;
                    (B) for fiscal year 2004, $20,000,000;
                    (C) for fiscal year 2005, $25,000,000;
                    (D) for fiscal year 2006, $30,000,000; and
                    (E) for fiscal year 2007, $35,000,000.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for activities under section 105, 
$50,000,000 for each of fiscal years 2008 through 2012.
    (d) Limits on Use of Funds.--None of the funds authorized to be 
appropriated under this section may be used for--
            (1) the promulgation and implementation of energy 
        efficiency regulations;
            (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
            (3) the State Energy Program under part D of title III of 
        the Energy Policy and Conservation Act; or
            (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

                        PART 2--LIGHTING SYSTEMS

SEC. 105. NEXT GENERATION LIGHTING INITIATIVE.

    (a) In General.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
research, development, demonstration, and commercial application 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
    (b) Objectives.--The objectives of the initiative shall be--
            (1) to develop, by 2012, advanced solid-state lighting 
        technologies based on white light emitting diodes that, 
        compared to incandescent and fluorescent lighting technologies, 
        are--
                    (A) longer lasting;
                    (B) more energy-efficient; and
                    (C) cost-competitive;
            (2) to develop an inorganic white light emitting diode that 
        has an efficiency of 160 lumens per watt and a 10-year 
        lifetime; and
            (3) to develop an organic white light emitting diode with 
        an efficiency of 100 lumens per watt with a 5-year lifetime 
        that--
                    (A) illuminates over a full color spectrum;
                    (B) covers large areas over flexible surfaces; and
                    (C) does not contain harmful pollutants, such as 
                mercury, typical of fluorescent lamps.
    (c) Fundamental Research.--
            (1) Consortium.--The Secretary shall carry out the 
        fundamental research activities of the Next Generation Lighting 
Initiative through a private consortium (which may include private 
firms, trade associations and institutions of higher education), which 
the Secretary shall select through a competitive process. Each proposed 
consortium shall submit to the Secretary such information as the 
Secretary may require, including a program plan agreed to by all 
participants of the consortium.
            (2) Joint venture.--The consortium shall be structured as a 
        joint venture among the participants of the consortium. The 
        Secretary shall serve on the governing council of the 
        consortium.
            (3) Eligibility.--To be eligible to be selected as the 
        consortium under paragraph (1), an applicant must be broadly 
        representative of United States solid-state lighting research, 
        development, and manufacturing expertise as a whole.
            (4) Grants.--(A) The Secretary shall award grants for 
        fundamental research to the consortium, which the consortium 
        may disburse to researchers, including those who are not 
        participants of the consortium.
            (B) To receive a grant, the consortium must provide a 
        description to the Secretary of the proposed research and list 
        the parties that will receive funding.
            (C) Grants shall be matched by the consortium pursuant to 
        section 182.
            (5) National laboratories.--National Laboratories may 
        participate in the research described in this section, and may 
        receive funds from the consortium.
            (6) Intellectual property.--Participants in the consortium 
        and the Federal Government shall have royalty-free nonexclusive 
        rights to use intellectual property derived from research 
        funded pursuant to this subsection.
    (d) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out the development, demonstration, and 
commercial application activities of the Next Generation Lighting 
Initiative through awards to private firms, trade associations, and 
institutions of higher education. In selecting awardees, the Secretary 
may give preference to members of the consortium selected pursuant to 
subsection (c).
    (e) Plans and Assessments.--(1) The consortium shall formulate an 
annual operating plan which shall include research priorities, 
technical milestones, and plans for technology transfer, and which 
shall be subject to approval by the Secretary.
    (2) The Secretary shall enter into an arrangement with the National 
Academy of Sciences to conduct periodic reviews of the Next Generation 
Lighting Initiative. The Academy shall review the research priorities, 
technical milestones, and plans for technology transfer established 
under paragraph (1) and evaluate the progress toward achieving them. 
The Secretary shall consider the results of such reviews in evaluating 
the plans submitted under paragraph (1).
    (f) Audit.--The Secretary shall retain an independent, commercial 
auditor to perform an audit of the consortium to determine the extent 
to which the funds authorized by this section have been expended in a 
manner consistent with the purposes of this section. The auditor shall 
transmit a report annually to the Secretary, who shall transmit the 
report to the Congress, along with a plan to remedy any deficiencies 
cited in the report.
    (g) Sunset.--The Next Generation Lighting Initiative shall 
terminate no later than September 30, 2013.
    (h) Definitions.--As used in this section:
            (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
            (2) Fundamental research.--The term ``fundamental 
        research'' includes basic research on both solid-state 
        materials and manufacturing processes.
            (3) Inorganic white light emitting diode.--The term 
        ``inorganic white light emitting diode'' means an inorganic 
        semiconducting package that produces white light using 
        externally applied voltage.
            (4) Organic white light emitting diode.--The term ``organic 
        white light emitting diode'' means an organic semiconducting 
        compound that produces white light using externally applied 
        voltage.

                           PART 3--BUILDINGS

SEC. 106. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--Not later than 3 months after the date of 
enactment of this Act, the Director of the Office of Science and 
Technology Policy shall establish an interagency group to develop, in 
coordination with the advisory committee established under subsection 
(e), a National Building Performance Initiative (in this section 
referred to as the ``Initiative''). The interagency group shall be 
cochaired by appropriate officials of the Department and the Department 
of Commerce, who shall jointly arrange for the provision of necessary 
administrative support to the group.
    (b) Integration of Efforts.--The Initiative shall integrate 
Federal, State, and voluntary private sector efforts to reduce the 
costs of construction, operation, maintenance, and renovation of 
commercial, industrial, institutional, and residential buildings.
    (c) Plan.--Not later than 1 year after the date of enactment of 
this Act, the interagency group shall submit to Congress a plan for 
carrying out the appropriate Federal role in the Initiative. The plan 
shall include--
            (1) research, development, demonstration, and commercial 
        application of systems and materials for new construction and 
        retrofit relating to the building envelope and building system 
        components; and
            (2) the collection, analysis, and dissemination of research 
        results and other pertinent information on enhancing building 
        performance to industry, government entities, and the public.
    (d) Department of Energy Role.--Within the Federal portion of the 
Initiative, the Department shall be the lead agency for all aspects of 
building performance related to use and conservation of energy.
    (e) Advisory Committee.--
            (1) Establishment.--The Director of the Office of Science 
        and Technology Policy shall establish an advisory committee 
        to--
                    (A) analyze and provide recommendations on 
                potential private sector roles and participation in the 
                Initiative; and
                    (B) review and provide recommendations on the plan 
                described in subsection (c).
            (2) Membership.--Membership of the advisory committee shall 
        include representatives with a broad range of appropriate 
        expertise, including expertise in--
                    (A) building research and technology;
                    (B) architecture, engineering, and building 
                materials and systems; and
                    (C) the residential, commercial, and industrial 
                sectors of the construction industry.
    (f) Construction.--Nothing in this section provides any Federal 
agency with new authority to regulate building performance.

                            PART 4--VEHICLES

SEC. 107. DEFINITIONS.

    For purposes of this part, the term--
            (1) ``battery'' means an energy storage device that 
        previously has been used to provide motive power in a vehicle 
        powered in whole or in part by electricity; and
            (2) ``associated equipment'' means equipment located where 
        the batteries will be used that is necessary to enable the use 
        of the energy stored in the batteries.

SEC. 108. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE 
              PROGRAM.

    (a) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries. Such program shall be--
            (1) designed to demonstrate the use of batteries in 
        secondary application, including utility and commercial power 
        storage and power quality;
            (2) structured to evaluate the performance, including 
        useful service life and costs, of such batteries in field 
        operations, and evaluate the necessary supporting 
        infrastructure, including reuse and disposal of batteries; and
            (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (b) Solicitation.--(1) Not later than 6 months after the date of 
the enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
    (2)(A) Proposals submitted in response to a solicitation under this 
section shall include--
            (i) a description of the project, including the batteries 
        to be used in the project, the proposed locations and 
        applications for the batteries, the number of batteries to be 
        demonstrated, and the type, characteristics, and estimated 
        life-cycle costs of the batteries compared to other energy 
        storage devices currently used;
            (ii) the contribution, if any, of State or local 
        governments and other persons to the demonstration project;
            (iii) the type of associated equipment and supporting 
        infrastructure to be demonstrated; and
            (iv) any other information the Secretary considers 
        appropriate.
    (B) If the proposal includes a lease arrangement, the proposal 
shall indicate the terms of such lease arrangement for the batteries 
and associated equipment.
    (c) Selection of Proposals.--(1)(A) The Secretary shall, not later 
than 3 months after the closing date established by the Secretary for 
receipt of proposals under subsection (b), select at least 5 proposals 
to receive financial assistance under this section.
    (B) No one project selected under this section shall receive more 
than 25 percent of the funds authorized under this section. No more 
than 3 projects selected under this section shall demonstrate the same 
battery type.
    (2) In selecting a proposal under this section, the Secretary shall 
consider--
            (A) the ability of the proposer to acquire the batteries 
        and associated equipment and to successfully manage and conduct 
        the demonstration project, including satisfying the reporting 
        requirements set forth in paragraph (3)(B);
            (B) the geographic and climatic diversity of the projects 
        selected;
            (C) the long-term technical and competitive viability of 
        the batteries to be used in the project and of the original 
        manufacturer of such batteries;
            (D) the suitability of the batteries for their intended 
        uses;
            (E) the technical performance of the batteries, including 
        the expected additional useful life and the batteries' ability 
        to retain energy;
            (F) the environmental effects of the use of and disposal of 
        the batteries proposed to be used in the project selected;
            (G) the extent of involvement of State or local government 
        and other persons in the demonstration project and whether such 
        involvement will--
                    (i) permit a reduction of the Federal cost share 
                per project; or
                    (ii) otherwise be used to allow the Federal 
                contribution to be provided to demonstrate a greater 
                number of batteries; and
            (H) such other criteria as the Secretary considers 
        appropriate.
    (3) Conditions.--The Secretary shall require that--
            (A) as a part of a demonstration project, the users of the 
        batteries provide to the proposer information regarding the 
        operation, maintenance, performance, and use of the batteries, 
        and the proposer provide such information to the battery 
        manufacturer, for 3 years after the beginning of the 
        demonstration project;
            (B) the proposer provide to the Secretary such information 
        regarding the operation, maintenance, performance, and use of 
        the batteries as the Secretary may request;
            (C) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law; and
            (D) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

SEC. 109. ADVANCED VEHICLE TECHNOLOGY.

    The Secretary shall expand research and development programs of the 
Department related to advanced vehicle technologies, including--
            (1) fuel cells, including high temperature membranes for 
        fuel cells and fuel cell auxiliary power systems, and hydrogen 
        storage;
            (2) vehicle engine systems and emission control systems;
            (3) batteries and power electronics for hybrid vehicles;
            (4) combustion and after-treatment technologies for use in 
        direct injected gasoline and diesel fueled motor vehicles; and
            (5) other advanced fuels and materials.

              PART 5--ENERGY EFFICIENCY SCIENCE INITIATIVE

SEC. 110. ENERGY EFFICIENCY SCIENCE INITIATIVE.

    (a) Establishment.--The Secretary shall establish an Energy 
Efficiency Science Initiative to be managed by the Assistant Secretary 
in the Department with responsibility for energy conservation under 
section 203(a)(9) of the Department of Energy Organization Act (42 
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of 
Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
    (b) Report.--The Secretary shall submit to the Congress, along with 
the President's annual budget request under section 1105(a) of title 
31, United States Code, a report on the activities of the Energy 
Efficiency Science Initiative, including a description of the process 
used to award the funds and an explanation of how the research relates 
to energy efficiency.

       Subtitle B--Distributed Energy and Electric Energy Systems

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 111. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for distributed energy and electric 
energy systems activities, including activities authorized under this 
subtitle:
            (1) For fiscal year 2003, $155,000,000.
            (2) For fiscal year 2004, $190,000,000.
            (3) For fiscal year 2005, $200,000,000.
            (4) For fiscal year 2006, $220,000,000.
            (5) For fiscal year 2007, $240,000,000.
    (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), $2,000,000 for fiscal year 2003 and $20,000,000 
for fiscal year 2004 shall be available for activities under section 
114.

                       PART 2--DISTRIBUTED POWER

SEC. 112. STRATEGY.

    (a) Requirement.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop and transmit to the Congress a 
strategy for a comprehensive research, development, demonstration, and 
commercial application program to develop hybrid distributed power 
systems that combine--
            (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
            (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.
    (b) Contents.--The strategy shall--
            (1) identify the needs best met with such hybrid 
        distributed power systems and the technological barriers to the 
        use of such systems;
            (2) provide for the development of methods to design, test, 
        integrate into systems, and operate such hybrid distributed 
        power systems;
            (3) include, as appropriate, research, development, 
        demonstration, and commercial application on related 
        technologies needed for the adoption of such hybrid distributed 
        power systems, including energy storage devices and 
        environmental control technologies; and
            (4) describe how activities under the strategy will be 
        integrated with other research, development, demonstration, and 
        commercial application activities supported by the Department 
        of Energy related to electric power technologies.

SEC. 113. HIGH POWER DENSITY INDUSTRY PROGRAM.

    The Secretary shall establish a comprehensive research, 
development, demonstration, and commercial application program to 
improve energy efficiency of high power density facilities, including 
data centers, server farms, and telecommunications facilities. Such 
program shall consider technologies that provide significant 
improvement in thermal controls, metering, load management, peak load 
reduction, or the efficient cooling of electronics.

SEC. 114. MICRO-COGENERATION ENERGY TECHNOLOGY.

    The Secretary shall make competitive, merit-based grants to 
consortia for the development of micro-cogeneration energy technology. 
The consortia shall explore the use of small-scale combined heat and 
power in residential heating appliances.

                      PART 3--TRANSMISSION SYSTEMS

SEC. 115. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, DEVELOPMENT, 
              DEMONSTRATION, AND COMMERCIAL APPLICATION.

    (a) Program Authorized.--The Secretary shall develop and implement 
a comprehensive research, development, demonstration, and commercial 
application program to promote improved reliability and efficiency of 
electrical transmission systems. Such program may include--
            (1) advanced energy technologies, materials, and systems;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) any other infrastructure technologies, as appropriate; 
        and
            (9) technology transfer and education.
    (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary, in consultation with other 
appropriate Federal agencies, shall prepare and transmit to Congress a 
5-year program plan to guide activities under this section. In 
preparing the program plan, the Secretary shall consult with utilities, 
energy services providers, manufacturers, institutions of higher 
education, other appropriate State and local agencies, environmental 
organizations, professional and technical societies, and any other 
persons the Secretary considers appropriate.
    (c) Report.--Not later than 2 years after the transmittal of the 
plan under subsection (b), the Secretary shall transmit a report to 
Congress describing the progress made under this section and 
identifying any additional resources needed to continue the development 
and commercial application of transmission infrastructure technologies.

                      Subtitle C--Renewable Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 121. RENEWABLE ENERGY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for renewable energy research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle, including the 
amounts authorized under the amendments made by sections 124 and 125:
            (1) For fiscal year 2003, $390,000,000.
            (2) For fiscal year 2004, $460,000,000.
            (3) For fiscal year 2005, $510,000,000.
            (4) For fiscal year 2006, $560,000,000.
            (5) For fiscal year 2007, $609,000,000.
    (b) Bioenergy.--From the amounts authorized under subsection (a), 
the following sums are authorized to be appropriated to carry out 
section 122 and section 176:
            (1) For fiscal year 2003, $117,800,000.
            (2) For fiscal year 2004, $135,425,000.
            (3) For fiscal year 2005, $155,600,000.
            (4) For fiscal year 2006, $167,650,000.
            (5) For fiscal year 2007, $180,000,000.
    (c) Limits on Use of Funds.--
            (1) Exclusion.--None of the funds authorized to be 
        appropriated under this section may be used for Renewable 
        Support and Implementation.
            (2) Bioenergy.--Of the funds authorized under subsection 
        (b), not less than $5,000,000 for each fiscal year shall be 
        made available for grants to Historically Black Colleges and 
        Universities, Tribal Colleges, and Hispanic-Serving 
        Institutions.
            (3) Rural and remote locations.--In carrying out this 
        section, the Secretary, in consultation with the Secretary of 
        Agriculture, shall demonstrate the use of advanced wind power 
        technology, biomass, geothermal energy systems, and other 
        renewable energy technologies to assist in delivering 
        electricity to rural and remote locations.

                           PART 2--BIOENERGY

SEC. 122. BIOENERGY PROGRAMS.

    The Secretary shall conduct a program of research, development, 
demonstration, and commercial application for bioenergy, including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) integrated applications of both biopower and biofuels;
            (4) cross-cutting research and development in feedstocks; 
        and
            (5) economic analysis.

                            PART 3--HYDROGEN

SEC. 123. SHORT TITLE.

    This part may be cited as the ``George E. Brown, Jr. and Robert S. 
Walker Hydrogen Future Act of 2003''.

SEC. 124. MATSUNAGA ACT AMENDMENT.

    The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by 
striking sections 102 through 109 and inserting the following:

``SEC. 102. FINDING, PURPOSES, AND DEFINITIONS.

    ``(a) Finding.--Congress finds that it is in the national interest 
to accelerate efforts to develop a domestic capability to economically 
produce hydrogen in quantities that will make a significant 
contribution toward reducing the Nation's dependence on conventional 
fuels.
    ``(b) Purposes.--The purposes of this Act are--
            ``(1) to promote a research, development, and demonstration 
        program leading to the economical and environmentally sound 
        production, storage, transport, and use of hydrogen as an 
        energy source for industrial, commercial, residential, 
        transportation, and utility applications; and
            ``(2) to promote and coordinate activities in technology 
        transfer, education, and other information transfer among 
        Federal, State, and local agencies; members of the energy, 
        transportation, and other industries; foreign nations; and 
        other entities.
    ``(c) Definitions.--As used in this Act, the term--
            ``(1) `advisory committee' means the advisory committee 
        established under section 108;
            ``(2) `critical technology' (or `critical technical issue') 
        means a technology (or issue) that, in the opinion of the 
        Secretary, requires understanding and development in order to 
        take the next step needed in the development of hydrogen as an 
        economic fuel or storage medium;
            ``(3) `Department' means the Department of Energy; and
            ``(4) `Secretary' means the Secretary of Energy.

``SEC. 103. PLAN; REPORT.

    ``(a) Coordination Plan.--The Secretary, in consultation with other 
Federal agencies, shall prepare a comprehensive coordination plan for 
activities under this Act and under title II of the Hydrogen Future Act 
of 1996. The Secretary shall take into account any plan under section 
202(b) of the Hydrogen Future Act of 1996.
    ``(b) Report.--
            ``(1) Requirement.--Not later than 1 year after the date of 
        enactment of the George E. Brown, Jr. and Robert S. Walker 
        Hydrogen Future Act of 2003, and biennially thereafter, the 
        Secretary shall transmit to Congress a detailed report, based 
        on the plan prepared under subsection (a), on the status and 
        progress of the programs authorized under this Act.
            ``(2) Contents.--A report under paragraph (1) shall 
        include, in addition to any views and recommendations of the 
        Secretary--
                    ``(A) an assessment of the effectiveness of the 
                programs authorized under this Act and of the extent to 
                which they are meeting the purposes specified in 
                section 102(b);
                    ``(B) recommendations of the advisory committee for 
                any improvements in the program that are needed, 
                including recommendations for additional legislation; 
                and
                    ``(C) to the extent practicable, an analysis of 
                Federal, State, local, and private sector hydrogen-
                related research, development, and demonstration 
                activities to identify productive areas for increased 
                intergovernmental and private-public sector 
                collaboration.

``SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.

    ``(a) Program.--The Secretary shall conduct a research and 
development program relating to the production, storage, 
transportation, and use of hydrogen as an energy source, with the goal 
of enabling the private sector to demonstrate the technical feasibility 
of using hydrogen for industrial, commercial, residential, 
transportation, and utility applications.
    ``(b) Elements.--In conducting the program authorized by this 
section, the Secretary shall--
            ``(1) initiate or accelerate research and development in 
        critical technical issues that will contribute to the 
        development of more economical and environmentally sound 
        hydrogen energy systems, including critical technical issues 
        with respect to--
                    ``(A) production, with consideration of cost-
                effective production from renewable energy sources;
                    ``(B) liquefaction, transmission, and distribution;
                    ``(C) storage, including storage of hydrogen in 
                surface transportation; and
                    ``(D) use, including use in--
                            ``(i) surface transportation;
                            ``(ii) isolated villages, islands, and 
                        communities in which other energy sources are 
                        not available or are very expensive;
                            ``(iii) fuel cells and components, 
                        including proton exchange membrane 
                        technologies; and
                            ``(iv) foreign markets, particularly where 
                        an energy infrastructure is not well developed;
            ``(2) give particular attention to resolving critical 
        technical issues preventing the introduction of hydrogen as an 
        energy source into the marketplace, so as to enable the 
        development of voluntary consensus technical standards; and
            ``(3) survey private sector hydrogen energy research and 
        development activities worldwide and take steps to ensure that 
        research and development activities under this section do not--
                    ``(A) unnecessarily duplicate any available 
                research and development; or
                    ``(B) displace or compete with the privately funded 
                hydrogen energy research and development activities of 
                United States industry.
    ``(c) Research and Development Support.--The Secretary is 
authorized to arrange for tests and demonstrations and to disseminate 
to researchers and developers information, data, and other materials 
necessary to support the research and development activities authorized 
under this section and other efforts authorized under this Act, 
consistent with section 106.
    ``(d) Federal Funding.--The Secretary shall carry out the research 
and development activities authorized under this section using a 
competitive merit review process.
    ``(e) Cost Sharing.--
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 20 percent of the cost of 
        proposed research and development projects under this section.
            ``(2) Reduction or elimination.--The Secretary may reduce 
        or eliminate the cost sharing requirement under paragraph (1)--
                    ``(A) if the Secretary determines that the research 
                and development is of a basic or fundamental nature; or
                    ``(B) for technical analyses, outreach activities, 
                and educational programs that the Secretary does not 
                expect to result in a marketable product.

``SEC. 105. DEMONSTRATIONS.

    ``(a) Requirement.--The Secretary shall conduct demonstrations of 
critical technologies so that technical and nontechnical parameters can 
be evaluated to best determine commercial applicability of such 
technologies. Demonstrations under this section shall include fuel 
cells and fuel cell components, including proton exchange membrane 
technologies, for commercial, residential, and transportation 
applications, using improved manufacturing production and processes.
    ``(b) Demonstrations With Research and Development Activities.--
Concurrently with activities conducted pursuant to section 104, the 
Secretary shall conduct small-scale demonstrations of hydrogen energy 
technology at self-contained sites.
    ``(c) Cost Sharing.--
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 50 percent of the costs 
        directly relating to a demonstration project under this 
        section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.

``SEC. 106. TECHNOLOGY ASSESSMENT AND TRANSFER.

    ``(a) Program.--
            ``(1) In general.--The Secretary shall conduct a program 
        designed to transfer critical technologies to the private 
        sector, including application in foreign countries to increase 
        the global market for the technologies and foster global 
        development without harmful environmental effects.
            ``(2) Advice and assistance.--The Secretary shall direct 
        the program authorized by this subsection with the advice and 
        assistance of the advisory committee.
    ``(b) Information.--
            ``(1) In general.--The Secretary, in carrying out the 
        program authorized by subsection (a), shall--
                    ``(A) undertake an update of the inventory and 
                assessment of hydrogen energy technologies and their 
                commercial capability to economically produce, store, 
                transport, and use hydrogen as an energy source in the 
                industrial, commercial, residential, transportation, 
                and utility sectors; and
                    ``(B) develop with the National Aeronautics and 
                Space Administration, other Federal agencies as 
                appropriate, and industry, an information exchange 
                program to improve technology transfer for hydrogen 
                energy technologies.
            ``(2) Activities.--The information exchange program may 
        consist of workshops, publications, conferences, and a database 
        for the use by the public and private sectors. The Secretary 
        shall also foster the exchange of generic, nonproprietary 
        information and technology, developed pursuant to this Act, 
        among industry, academia, and the Federal Government, to help 
        the United States economy attain the economic benefits of this 
        information and technology.

``SEC. 107. COORDINATION AND CONSULTATION.

    ``(a) Secretary's Responsibility.--The Secretary shall have overall 
management responsibility for carrying out programs under this Act. In 
carrying out such programs, the Secretary, consistent with such overall 
management responsibility--
            ``(1) shall establish a central point for the coordination 
        of all hydrogen energy research, development, and demonstration 
        activities of the Department; and
            ``(2) may use the expertise of any other Federal agency in 
        accordance with subsection (b) in carrying out any activities 
        under this Act, to the extent that the Secretary determines 
        that any such agency has capabilities which would allow such 
        agency to contribute to the purposes of this Act.
    ``(b) Assistance.--The Secretary may, in accordance with subsection 
(a), obtain the assistance of any Federal agency upon written request, 
on a reimbursable basis or otherwise and with the consent of such 
agency. Each such request shall identify the assistance the Secretary 
considers necessary to carry out any duty under this Act.
    ``(c) Consultation.--The Secretary shall consult with other Federal 
agencies as appropriate, and the advisory committee, in carrying out 
the Secretary's authorities pursuant to this Act.

``SEC. 108. ADVISORY COMMITTEE.

    ``(a) Establishment.--There is hereby established the Hydrogen 
Technical Advisory Committee to advise the Secretary on the programs 
under this Act and under title II of the Hydrogen Future Act of 1996, 
to remain in existence for the duration of such programs.
    ``(b) Membership.--
            ``(1) In general.--The advisory committee shall be 
        comprised of not fewer than 9 nor more than 15 members 
        appointed by the Secretary, and shall be comprised of such 
        representatives from domestic industry, universities, 
        professional societies, Government laboratories, and financial, 
        environmental, and other organizations as the Secretary 
        considers appropriate based on the Secretary's assessment of 
        the technical and other qualifications of such representatives.
            ``(2) Terms.--
                    ``(A) In general.--The term of a member of the 
                advisory committee shall not be more than three years.
                    ``(B) Staggered terms.--The Secretary may appoint 
                members of the advisory committee in a manner that 
                allows the terms of the members serving at any time to 
                expire at spaced intervals so as to ensure continuity 
                in the functioning of the advisory committee.
                    ``(C) Reappointment.--A member of the advisory 
                committee whose term expires may be reappointed.
            ``(3) Chairperson.--The advisory committee shall have a 
        chairperson, who shall be elected by the members from among 
        their number.
    ``(c) Cooperation.--The heads of Federal agencies shall cooperate 
with the advisory committee in carrying out the requirements of this 
section and shall furnish to the advisory committee such information as 
the advisory committee considers necessary to carry out this section.
    ``(d) Review.--The advisory committee shall review and make any 
necessary recommendations to the Secretary on--
            ``(1) the implementation and conduct of programs under this 
        Act;
            ``(2) the economic, technological, and environmental 
        consequences of the deployment of technologies for the 
        production, storage, transportation, and use of hydrogen as an 
        energy source; and
            ``(3) the coordination plan prepared by the Secretary under 
        section 103 and the plan developed by the interagency task 
        force under section 202(b) of the Hydrogen Future Act of 1996.
    ``(e) Response to Recommendations.--The Secretary shall consider, 
but need not adopt, any recommendations of the advisory committee under 
subsection (d). The Secretary shall either describe the implementation, 
or provide an explanation of the reasons that any such recommendations 
will not be implemented, in the report to Congress under section 
103(b).
    ``(f) Support.--The Secretary shall provide such staff, funds, and 
other support as may be necessary to enable the advisory committee to 
carry out its functions.

``SEC. 109. NATIONAL ACADEMY OF SCIENCES REVIEW.

    ``Beginning 2 years after the date of the enactment of this 
section, and every 4 years thereafter, the National Academy of Sciences 
shall perform a review of the progress made through the programs and 
activities authorized under this Act and title II of the Hydrogen 
Future Act of 1996, and shall report to the Congress on the results of 
such reviews.

``SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the purposes 
of this Act (in addition to any amounts made available for such 
purposes under other Acts)--
            ``(1) $3,000,000 for fiscal year 1992;
            ``(2) $7,000,000 for fiscal year 1993;
            ``(3) $10,000,000 for fiscal year 1994;
            ``(4) $14,500,000 for fiscal year 1996;
            ``(5) $20,000,000 for fiscal year 1997;
            ``(6) $25,000,000 for fiscal year 1998;
            ``(7) $30,000,000 for fiscal year 1999;
            ``(8) $35,000,000 for fiscal year 2000;
            ``(9) $40,000,000 for fiscal year 2001;
            ``(10) $45,000,000 for fiscal year 2002;
            ``(11) $50,000,000 for fiscal year 2003;
            ``(12) $55,000,000 for fiscal year 2004;
            ``(13) $60,000,000 for fiscal year 2005;
            ``(14) $65,000,000 for fiscal year 2006; and
            ``(15) $70,000,000 for fiscal year 2007.''.

SEC. 125. HYDROGEN FUTURE ACT AMENDMENT.

    Title II of the Hydrogen Future Act of 1996 (42 U.S.C. 12403 note) 
is amended to read as follows:

                         ``TITLE II--FUEL CELLS

``SEC. 201. INTEGRATION OF FUEL CELLS WITH HYDROGEN SYSTEMS.

    ``(a) In General.--The Secretary shall solicit proposals for 
projects demonstrating hydrogen technologies needed to use fuel cells 
in Federal, State, and local government stationary and transportation 
applications.
    ``(b) Competitive Evaluation.--Each proposal submitted in response 
to the solicitation under this section shall be evaluated on a 
competitive basis using peer review. The Secretary is not required to 
make an award under this section in the absence of a meritorious 
proposal.
    ``(c) Preference.--The Secretary shall give preference, in making 
an award under this section, to proposals that--
            ``(1) are submitted jointly from consortia including 
        academic institutions, industry, State or local governments, 
        and Federal laboratories; and
            ``(2) reflect proven experience and capability with 
        technologies relevant to the projects proposed.
    ``(d) Non-Federal Share.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require a commitment from non-Federal sources 
        of at least 50 percent of the costs directly relating to a 
        demonstration project under this section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.

``SEC. 202. INTERAGENCY TASK FORCE.

    ``(a) Establishment.--Not later than 120 days after the date of 
enactment of the George E. Brown, Jr. and Robert S. Walker Hydrogen 
Future Act of 2003, the Secretary shall establish an interagency task 
force led by the Secretary's designee and comprised of representatives 
of--
            ``(1) the Office of Science and Technology Policy;
            ``(2) the Department of Transportation;
            ``(3) the Department of Defense;
            ``(4) the Department of Commerce (including the National 
        Institute of Standards and Technology);
            ``(5) the Environmental Protection Agency;
            ``(6) the National Aeronautics and Space Administration; 
        and
            ``(7) other Federal agencies as appropriate.
    ``(b) Duties.--
            ``(1) Development of plan.--The task force shall develop a 
        plan for carrying out this title.
            ``(2) Focus of plan.--The plan shall focus on development 
        and demonstration of integrated systems and components for--
                    ``(A) the production, storage, transport, and use 
                of hydrogen as an energy source for Federal, State, and 
                local government stationary and transportation 
                applications;
                    ``(B) hydrogen-based infrastructure for buses and 
                other fleet transportation systems that include zero-
                emission vehicles; and
                    ``(C) hydrogen-based distributed power generation, 
                including the generation of combined heat, power, and 
                hydrogen.

``SEC. 203. COOPERATIVE AND COST-SHARING AGREEMENTS.

    ``The Secretary shall enter into cooperative and cost-sharing 
agreements with Federal, State, and local agencies for participation by 
the agencies in demonstrations at facilities administered by the 
agencies, with the aim of integrating high-efficiency hydrogen systems 
using fuel cells into the facilities to provide near-term benefits and 
promote a smooth transition to hydrogen as an energy source.

``SEC. 204. INTEGRATION AND DISSEMINATION OF TECHNICAL INFORMATION.

    ``The Secretary shall--
            ``(1) integrate all the technical information available as 
        a result of development and demonstration projects under this 
        title;
            ``(2) make the information available to all interested 
        persons; and
            ``(3) foster the exchange of generic, nonproprietary 
        information and technology developed under this title among 
        industry, academia, and Federal, State, and local governments, 
        to help the United States economy attain the economic benefits 
        of the information and technology.

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary, for 
activities under this title--
            ``(1) $5,000,000 for fiscal year 2003;
            ``(2) $25,000,000 for fiscal year 2004;
            ``(3) $30,000,000 for fiscal year 2005;
            ``(4) $35,000,000 for fiscal year 2006; and
            ``(5) $40,000,000 for fiscal year 2007.''.

                     PART 4--MISCELLANEOUS PROJECTS

SEC. 126. MISCELLANEOUS PROJECTS.

    The Secretary shall conduct research, development, demonstration, 
and commercial application programs for--
            (1) ocean energy, including wave energy;
            (2) the combined use of renewable energy technologies with 
        one another and with other energy technologies, including the 
        combined use of wind power and coal gasification technologies; 
        and
            (3) hydrogen carrier fuels.

                       Subtitle D--Nuclear Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 131. NUCLEAR ENERGY.

    (a) Core Programs.--The following sums are authorized to be 
appropriated to the Secretary for nuclear energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle, other than those described 
in subsection (b):
            (1) For fiscal year 2003, $200,000,000.
            (2) For fiscal year 2004, $233,000,000.
            (3) For fiscal year 2005, $266,000,000.
            (4) For fiscal year 2006, $300,000,000.
            (5) For fiscal year 2007, $334,000,000.
    (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities under 
section 132(f):
            (1) For fiscal year 2003, $120,000,000.
            (2) For fiscal year 2004, $125,000,000.
            (3) For fiscal year 2005, $130,000,000.
            (4) For fiscal year 2006, $135,000,000.
            (5) For fiscal year 2007, $140,000,000.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Advanced fuel recycling program.--For activities under 
        section 133--
                    (A) for fiscal year 2003, $80,000,000;
                    (B) for fiscal year 2004, $93,000,000;
                    (C) for fiscal year 2005, $106,000,000;
                    (D) for fiscal year 2006, $120,000,000; and
                    (E) for fiscal year 2007, $134,000,000.
            (2) University programs.--For activities under section 
        134--
                    (A) for fiscal year 2003, $25,000,000;
                    (B) for fiscal year 2004, $33,000,000;
                    (C) for fiscal year 2005, $37,900,000;
                    (D) for fiscal year 2006, $43,600,000; and
                    (E) for fiscal year 2007, $50,100,000.
    (d) Limit on Use of Funds.--None of the funds authorized under this 
section may be used for decommissioning the Fast Flux Test Facility.

                PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 132. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, and component aging in existing nuclear 
power plants.
    (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall--
            (1) rely on the expertise and capabilities of the National 
        Laboratories in the areas of advanced nuclear fuels cycles and 
        fuels testing;
            (2) pursue an approach that considers a variety of reactor 
        designs;
            (3) include participation of international collaborators in 
        research, development, and design efforts as appropriate; and
            (4) encourage industry participation.
    (d) Generation IV Nuclear Energy Systems Initiative.--The Secretary 
shall carry out a Generation IV Nuclear Energy Systems Initiative to 
develop an overall technology plan and to support research and 
development necessary to make an informed technical decision about the 
most promising candidates for eventual commercial application. The 
Initiative shall examine advanced proliferation-resistant and passively 
safe reactor designs, including designs that--
            (1) are economically competitive with other electric power 
        generation plants;
            (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (4) utilize improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen using thermochemical 
processes.
    (f) Nuclear Infrastructure Support.--The Secretary shall develop 
and implement a strategy for the facilities of the Office of Nuclear 
Energy, Science, and Technology and shall transmit a report containing 
the strategy along with the President's budget request to the Congress 
for fiscal year 2005. Such strategy shall provide a cost-effective 
means for--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility upgrades and modifications; and
            (4) building new facilities.

                    PART 3--ADVANCED FUEL RECYCLING

SEC. 133. ADVANCED FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary, through the Director of the Office 
of Nuclear Energy, Science and Technology, shall conduct an advanced 
fuel recycling technology research and development program to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
which minimize environmental or public health and safety impacts as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act in support of evaluation of alternative 
national strategies for spent nuclear fuel and the Generation IV 
advanced reactor concepts, subject to annual review by the Secretary's 
Nuclear Energy Research Advisory Committee or other independent entity, 
as appropriate. Opportunities to enhance progress of this program 
through international cooperation should be sought.
    (b) Reports.--The Secretary shall report on the activities of the 
advanced fuel recycling technology research and development program, as 
part of the Department's annual budget submission.

                      PART 4--UNIVERSITY PROGRAMS

SEC. 134. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
    (b) Duties.--In carrying out the program under this section, the 
Secretary shall--
            (1) establish a graduate and undergraduate fellowship 
        program to attract new and talented students;
            (2) establish a Junior Faculty Research Initiation Grant 
        Program to assist institutions of higher education in 
        recruiting and retaining new faculty in the nuclear sciences 
        and engineering;
            (3) support fundamental nuclear sciences and engineering 
        research through the Nuclear Engineering Education Research 
        Program;
            (4) encourage collaborative nuclear research among 
        industry, National Laboratories, and institutions of higher 
        education through the Nuclear Energy Research Initiative; and
            (5) support communication and outreach related to nuclear 
        science and engineering.
    (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
            (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
            (2) providing technical assistance, in collaboration with 
        the United States nuclear industry, in relicensing and 
        upgrading training reactors as part of a student training 
        program; and
            (3) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) University-National Laboratory Interactions.--The Secretary 
shall develop--
            (1) a sabbatical fellowship program for professors at 
        institutions of higher education to spend extended periods of 
        time at National Laboratories in the areas of nuclear science 
        and technology; and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear science and 
        engineering departments.
The Secretary may provide fellowships for students to spend time at 
National Laboratories in the area of nuclear science with a member of 
the Laboratory staff acting as a mentor.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a research reactor at an 
institution of higher education used in the research project.

                       Subtitle E--Fossil Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 141. FOSSIL ENERGY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for fossil energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle, other than those described 
in subsection (b):
            (1) For fiscal year 2003, $505,000,000.
            (2) For fiscal year 2004, $523,000,000.
            (3) For fiscal year 2005, $542,000,000.
            (4) For fiscal year 2006, $558,000,000.
            (5) For fiscal year 2007, $585,000,000.
    (b) Ultra-Deepwater and Unconventional Resources.--
            (1) Oil and gas lease income.--For each of fiscal years 
        2003 through 2010, from any royalties, rents, and bonuses 
        derived from Federal onshore and offshore oil and gas leases 
        issued under the Outer Continental Shelf Lands Act and the 
        Mineral Leasing Act which are deposited in the Treasury, and 
        after distribution of any such funds as described in paragraph 
        (2), an amount equal to 7.5 percent of the amount of royalties, 
rents, and bonuses derived from those leases deposited in the Treasury 
shall be deposited into the Ultra-Deepwater and Unconventional Natural 
Gas and Other Petroleum Research Fund (in this subsection referred to 
as the Fund). For purposes of this subsection, the term ``royalties'' 
excludes proceeds from the sale of royalty production taken in kind and 
royalty production that is transferred under section 27(a)(3) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)). Monies in the 
Fund shall be available to the Secretary for obligation under part 3, 
without fiscal year limitation, to the extent provided in advance in 
appropriations Acts.
            (2) Prior distributions.--The distributions described in 
        paragraph (1) are those required by law--
                    (A) to States and to the Reclamation Fund under the 
                Mineral Leasing Act (30 U.S.C. 191(a)); and
                    (B) to other funds receiving monies from Federal 
                oil and gas leasing programs, including--
                            (i) any recipients pursuant to section 8(g) 
                        of the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1337(g));
                            (ii) the Land and Water Conservation Fund, 
                        pursuant to section 2(c) of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 4601-
                        5(c)); and
                            (iii) the Historic Preservation Fund, 
                        pursuant to section 108 of the National 
                        Historic Preservation Act (16 U.S.C. 470h).
            (3) Allocation.--Amounts made available under this 
        subsection in each fiscal year shall be allocated as follows:
                    (A) 67.5 percent shall be for ultra-deepwater 
                natural gas and other petroleum activities under 
                section 145;
                    (B) 22.5 percent shall be for unconventional 
                natural gas and other petroleum resource activities 
                under section 146; and
                    (C) 10 percent shall be for research complementary 
                to research under section 144(b)(1) through (3).
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Fuel cell proton exchange membrane technology.--For 
        activities under section 142(c)(2), $28,000,000 for each of the 
        fiscal years 2003 through 2007.
            (2) Coal mining technologies.--For activities under section 
        143--
                    (A) for fiscal year 2004, $12,000,000; and
                    (B) for fiscal year 2005, $15,000,000.
            (3) Office of arctic energy.--For the Office of Arctic 
        Energy under section 3197 of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
        398), $25,000,000 for each of fiscal years 2003 through 2007.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy under 
section 3197 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (Public Law 106-398), $25,000,000 for each of 
fiscal years 2008 through 2011.
    (e) Limits on Use of Funds.--
            (1) Exclusions.--None of the funds authorized under this 
        section may be used for--
                    (A) Fossil Energy Environmental Restoration; or
                    (B) Import/Export Authorization.
            (2) University coal mining research.--Of the funds 
        authorized under subsection (c)(2), not less than 20 percent of 
        the funds appropriated for each fiscal year shall be dedicated 
        to research and development carried out at institutions of 
        higher education.

                       PART 2--RESEARCH PROGRAMS

SEC. 142. FOSSIL ENERGY RESEARCH PROGRAMS.

    (a) Coal Research.--(1) In addition to the Clean Coal Power 
Initiative authorized under title V, the Secretary shall conduct a 
program of research, development, demonstration, and commercial 
application for coal and power systems, including--
            (A) central systems;
            (B) sequestration research and development;
            (C) fuels;
            (D) advanced research; and
            (E) advanced separation technologies.
    (2) No funds may be used to carry out the activities authorized by 
paragraph (1) after September 30, 2003, unless one month has elapsed 
since the Secretary has transmitted to the Congress a report 
providing--
            (A) a detailed description of how proposals will be 
        solicited and evaluated;
            (B) a list of activities and technical milestones; and
            (C) a description of how these activities will complement 
        and not duplicate the Clean Coal Power Initiative authorized 
        under title V.
    (b) Oil and Gas Research.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application on oil 
and gas, including--
            (1) exploration and production;
            (2) gas hydrates;
            (3) reservoir life and extension;
            (4) transportation and distribution infrastructure;
            (5) ultraclean fuels;
            (6) heavy oil and oil shale; and
            (7) environmental research.
    (c) Fuel Cells.--(1) The Secretary shall conduct a program of 
research, development, demonstration, and commercial application on 
fuel cells for low-cost, high-efficiency, fuel-flexible, modular power 
systems.
    (2) The demonstrations shall include fuel cell proton exchange 
membrane technology for commercial, residential, and transportation 
applications, and distributed generation systems, utilizing improved 
manufacturing production and processes.
    (d) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of the enactment of this Act, and at 2-year intervals 
thereafter, the Secretary of the Interior, in consultation with other 
appropriate Federal agencies, shall transmit a report to the Congress 
of the latest estimates of natural gas and oil reserves, reserves 
growth, and undiscovered resources in Federal and State waters off the 
coast of Louisiana and Texas.

SEC. 143. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary shall carry out a program of 
research and development on coal mining technologies. The Secretary 
shall cooperate with appropriate Federal agencies, coal producers, 
trade associations, equipment manufacturers, institutions of higher 
education with mining engineering departments, and other relevant 
entities.
    (b) Program.--The research and development activities carried out 
under this section shall--
            (1) be based on the mining research and development 
        priorities identified by the Mining Industry of the Future 
        Program and in the recommendations from relevant reports of the 
        National Academy of Sciences on mining technologies; and
            (2) expand mining research capabilities at institutions of 
        higher education.

   PART 3--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 144. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program under this 
part of research, development, demonstration, and commercial 
application of technologies for ultra-deepwater and unconventional 
natural gas and other petroleum resource exploration and production, 
including safe operations and environmental mitigation (including 
reduction of greenhouse gas emissions and sequestration of carbon).
    (b) Program Elements.--The program under this part shall address 
the following areas, including improving safety and minimizing 
environmental impacts of activities within each area:
            (1) Ultra-deepwater technology.
            (2) Ultra-deepwater architecture.
            (3) Unconventional natural gas and other petroleum resource 
        exploration and production technology.
    (c) Limitation on Location of Field Activities.--Field activities 
under the program under this part shall be carried out only--
            (1) in--
                    (A) areas in the territorial waters of the United 
                States not under any Outer Continental Shelf moratorium 
                as of September 30, 2002;
                    (B) areas onshore in the United States on public 
                land administered by the Secretary of the Interior 
                available for oil and gas leasing, where consistent 
                with applicable law and land use plans; and
                    (C) areas onshore in the United States on State or 
                private land, subject to applicable law; and
            (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.
    (d) Research at National Energy Technology Laboratory.--The 
Secretary, through the National Energy Technology Laboratory, shall 
carry out research complementary to research under section 144(b)(1) 
through (3).
    (e) Consultation with Secretary of the Interior.--In carrying out 
this part, the Secretary shall consult regularly with the Secretary of 
the Interior.

SEC. 145. ULTRA-DEEPWATER PROGRAM.

    (a) In General.--The Secretary shall carry out the activities under 
paragraphs (1) and (2) of section 144(b), to maximize the value of the 
ultra-deepwater natural gas and other petroleum resources of the United 
States by increasing the supply of such resources and by reducing the 
cost and increasing the efficiency of exploration for and production of 
such resources, while improving safety and minimizing environmental 
impacts.
    (b) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this section.
    (c) Role of the Program Consortium.--
            (1) In general.--The Secretary shall contract with a 
        consortium to--
                    (A) manage awards pursuant to subsection (f)(4);
                    (B) make recommendations to the Secretary for 
                project solicitations;
                    (C) disburse funds awarded under subsection (f) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (e); and
                    (D) carry out other activities assigned to the 
                program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as specifically 
        authorized under this section.
            (3) Conflict of interest.--(A) The Secretary shall 
        establish procedures--
                    (i) to ensure that each board member, officer, or 
                employee of the program consortium who is in a 
                decisionmaking capacity under subsection (f)(3) or (4) 
                shall disclose to the Secretary any financial interests 
                in, or financial relationships with, applicants for or 
                recipients of awards under this section, including 
                those of his or her spouse or minor child, unless such 
                relationships or interests would be considered to be 
                remote or inconsequential; and
                    (ii) to require any board member, officer, or 
                employee with a financial relationship or interest 
                disclosed under clause (i) to recuse himself or herself 
                from any review under subsection (f)(3) or oversight 
                under subsection (f)(4) with respect to such applicant 
                or recipient.
            (B) The Secretary may disqualify an application or revoke 
        an award under this section if a board member, officer, or 
        employee has failed to comply with procedures required under 
        subparagraph (A)(ii).
    (d) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
            (2) Members.--The program consortium may include 
        corporations, institutions of higher education, National 
        Laboratories, or other research institutions. After submitting 
        a proposal under paragraph (4), the program consortium may not 
        add members without the consent of the Secretary.
            (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
            (4) Schedule.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for the creation of the program consortium, which must be 
        submitted not less than 180 days after the date of enactment of 
        this Act. The Secretary shall select the program consortium not 
        later than 240 days after such date of enactment.
            (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and -
                    (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
            (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing research, development, demonstration, and 
        commercial application programs in natural gas or other 
        petroleum exploration or production.
            (7) Criterion.--The Secretary may consider the amount of 
        the fee an applicant proposes to receive under subsection (g) 
        in selecting a consortium under this section.
    (e) Annual Plan.--
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--(A) Before drafting an annual plan under 
        this subsection, the Secretary shall solicit specific written 
        recommendations from the program consortium for each element to 
        be addressed in the plan, including those described in 
        paragraph (4). The Secretary may request that the program 
        consortium submit its recommendations in the form of a draft 
        annual plan.
            (B) The Secretary shall submit the recommendations of the 
        program consortium under subparagraph (A) to the Ultra-
        Deepwater Advisory Committee established under section 148(a) 
        for review, and such Advisory Committee shall provide to the 
        Secretary written comments by a date determined by the 
        Secretary. The Secretary may also solicit comments from any 
        other experts.
            (C) The Secretary shall consult regularly with the program 
        consortium throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to the 
        Congress and publish in the Federal Register the annual plan, 
        along with any written comments received under paragraph (2)(A) 
        and (B). The annual plan shall be transmitted and published not 
        later than 60 days after the date of enactment of an Act making 
        appropriations for a fiscal year for the program under this 
        section.
            (4) Contents.--The annual plan shall describe the ongoing 
        and prospective activities of the program under this section 
        and shall include--
                    (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out research, 
                development, demonstration, or commercial application 
                activities, including the topics for such work, who 
                would be eligible to apply, selection criteria, and the 
                duration of awards; and
                    (B) a description of the activities expected of the 
                program consortium to carry out subsection (f)(4).
    (f) Awards.--
            (1) In general.--The Secretary shall make awards to carry 
        out research, development, demonstration, and commercial 
        application activities under the program under this section. 
        The program consortium shall not be eligible to receive such 
        awards, but members of the program consortium may receive such 
        awards.
            (2) Proposals.--The Secretary shall solicit proposals for 
        awards under this subsection in such manner and at such time as 
        the Secretary may prescribe, in consultation with the program 
        consortium.
            (3) Review.--The Secretary shall make awards under this 
        subsection through a competitive process, which shall include a 
        review by individuals selected by the Secretary. Such 
        individuals shall include, for each application, Federal 
        officials, the program consortium, and non-Federal experts who 
        are not board members, officers, or employees of the program 
        consortium or of a member of the program consortium.
            (4) Oversight.--(A) The program consortium shall oversee 
        the implementation of awards under this subsection, consistent 
        with the annual plan under subsection (e), including disbursing 
        funds and monitoring activities carried out under such awards 
        for compliance with the terms and conditions of the awards.
            (B) Nothing in subparagraph (A) shall limit the authority 
        or responsibility of the Secretary to oversee awards, or limit 
        the authority of the Secretary to review or revoke awards.
            (C) The Secretary shall provide to the program consortium 
        the information necessary for the program consortium to carry 
        out its responsibilities under this paragraph.
    (g) Fee.--
            (1) In general.--To compensate the program consortium for 
        carrying out its activities under this section, the Secretary 
        shall provide to the program consortium a fee in an amount not 
        to exceed 7.5 percent of the amounts awarded under subsection 
        (f) for each fiscal year.
            (2) Advance.--The Secretary shall advance funds to the 
        program consortium upon selection of the consortium, which 
        shall be deducted from amounts to be provided under paragraph 
        (1).
    (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report annually 
to the Secretary, who shall transmit the report to Congress, along with 
a plan to remedy any deficiencies cited in the report.

SEC. 146. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
              PROGRAM.

    (a) In General.--The Secretary shall carry out activities under 
section 144(b)(3), to maximize the value of the onshore unconventional 
natural gas and other petroleum resources of the United States by 
increasing the supply of such resources and by reducing the cost and 
increasing the efficiency of exploration for and production of such 
resources, while improving safety and minimizing environmental impacts.
    (b) Awards.--
            (1) In general.--The Secretary shall carry out this section 
        through awards made through an open, competitive process.
            (2) Consortia.--In carrying out paragraph (1), the 
        Secretary shall give preference to making awards to consortia.
    (c) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided under awards 
made under this section have been expended in a manner consistent with 
the purposes and requirements of this part. The auditor shall transmit 
a report annually to the Secretary, who shall transmit the report to 
Congress, along with a plan to remedy any deficiencies cited in the 
report.
    (d) Focus Areas.--Awards under this section may focus on areas 
including advanced coal-bed methane, deep drilling, natural gas 
production from tight sands, natural gas production from gas shales, 
innovative exploration and production techniques, enhanced recovery 
techniques, and environmental mitigation of unconventional natural gas 
and other petroleum resources exploration and production.
    (e) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological Survey, 
shall, where appropriate, carry out programs of long-term research to 
complement the programs under this section.

SEC. 147. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award under this 
part for a demonstration project shall describe with specificity the 
intended commercial use of the technology to be demonstrated.
    (b) Flexibility in Locating Demonstration Projects.--Subject to the 
limitation in section 144(c), a demonstration project under this part 
relating to an ultra-deepwater technology or an ultra-deepwater 
architecture may be conducted in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under this part 
is made to a consortium (other than the program consortium), the 
consortium shall provide to the Secretary a signed contract agreed to 
by all members of the consortium describing the rights of each member 
to intellectual property used or developed under the award.
    (d) Technology Transfer.--Each recipient of an award under this 
part shall conduct technology transfer activities, as appropriate, and 
outreach activities pursuant to section 190.
    (e) Cost-Sharing Reduction for Independent Producers.--In applying 
the cost-sharing requirements under section 182 to an award under this 
part made solely to an independent producer of oil or gas, the 
Secretary may reduce the applicable non-Federal requirement in such 
section to a level not less than 10 percent of the cost of the project.

SEC. 148. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Ultra-Deepwater Advisory 
        Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including--
                    (A) individuals with extensive research experience 
                or operational knowledge of offshore natural gas and 
                other petroleum exploration and production;
                    (B) individuals broadly representative of the 
                affected interests in ultra-deepwater natural gas and 
                other petroleum production, including interests in 
                environmental protection and safe operations;
                    (C) no individuals who are Federal employees; and
                    (D) no individuals who are board members, officers, 
                or employees of the program consortium.
            (3) Duties.--The advisory committee under this subsection 
        shall--
                    (A) advise the Secretary on the development and 
                implementation of programs under this part related to 
                ultra-deepwater natural gas and other petroleum 
                resources; and
                    (B) carry out section 145(e)(2)(B).
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (b) Unconventional Resources Technology Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including--
                    (A) individuals with extensive research experience 
                or operational knowledge of unconventional natural gas 
                and other petroleum resource exploration and 
                production, including independent oil and gas 
                producers;
                    (B) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations; and
                    (C) no individuals who are Federal employees.
            (3) Duties.--The advisory committee under this subsection 
        shall advise the Secretary on the development and 
        implementation of activities under this part related to 
        unconventional natural gas and other petroleum resources.
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (c) Prohibition.--No advisory committee established under this 
section shall make recommendations on funding awards to consortia or 
for specific projects.

SEC. 149. LIMITS ON PARTICIPATION.

    (a) In General.--An entity shall be eligible to receive an award 
under this part only if the Secretary finds--
            (1) that the entity's participation in the program under 
        this part would be in the economic interest of the United 
        States; and
            (2) that either--
                    (A) the entity is a United States-owned entity 
                organized under the laws of the United States; or
                    (B) the entity is organized under the laws of the 
                United States and has a parent entity organized under 
                the laws of a country which affords--
                            (i) to United States-owned entities 
                        opportunities, comparable to those afforded to 
                        any other entity, to participate in any 
                        cooperative research venture similar to those 
                        authorized under this part;
                            (ii) to United States-owned entities local 
                        investment opportunities comparable to those 
                        afforded to any other entity; and
                            (iii) adequate and effective protection for 
                        the intellectual property rights of United 
                        States-owned entities.
    (b) Sense of Congress and Report.--It is the Sense of the Congress 
that ultra-deepwater technology developed under this part is to be 
developed primarily for production of ultra-deepwater natural gas and 
other petroleum resources of the United States, and that this priority 
is to be reflected in the terms of grants, contracts, and cooperative 
agreements entered under this part. As part of the annual Departmental 
budget submission, the Secretary shall report on all steps taken to 
implement the policy described in this subsection.

SEC. 150. FUND.

    There is hereby established in the Treasury of the United States a 
separate fund to be known as the ``Ultra-Deepwater and Unconventional 
Natural Gas and Other Petroleum Research Fund''.

SEC. 151. SUNSET.

    The authority provided by this part shall terminate on September 
30, 2010.

SEC. 152. DEFINITIONS.

    In this section:
            (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (2) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 145(d).
            (3) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
            (4) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (5) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        for the exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (6) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address one or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (7) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation.

                          Subtitle F--Science

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 161. SCIENCE.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for research, development, demonstration, 
and commercial application activities of the Office of Science, 
including activities authorized under this subtitle, including the 
amounts authorized under the amendment made by section 
170(c)(2)(C)(ii), and including basic energy sciences, advanced 
scientific and computing research, biological and environmental 
research, fusion energy sciences, high energy physics, nuclear physics, 
and research analysis and infrastructure support:
            (1) For fiscal year 2003, $3,350,000,000.
            (2) For fiscal year 2004, $3,785,000,000.
            (3) For fiscal year 2005, $4,153,000,000.
            (4) For fiscal year 2006, $4,586,000,000.
            (5) For fiscal year 2007, $5,000,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Fusion energy sciences.--For activities of the Fusion 
        Energy Sciences Program, including activities under sections 
        162 and 163--
                    (A) for fiscal year 2003, $300,000,000;
                    (B) for fiscal year 2004, $335,000,000;
                    (C) for fiscal year 2005, $349,000,000;
                    (D) for fiscal year 2006, $362,000,000; and
                    (E) for fiscal year 2007, $377,000,000.
            (2) Spallation neutron source.--
                    (A) Construction.--For construction of the 
                Spallation Neutron Source--
                            (i) for fiscal year 2003, $210,571,000;
                            (ii) for fiscal year 2004, $124,600,000;
                            (iii) for fiscal year 2005, $79,800,000; 
                        and
                            (iv) for fiscal year 2006, $41,100,000 for 
                        completion of construction.
                    (B) Other project funding.--For other project costs 
                (including research and development necessary to 
                complete the project, preoperations costs, and capital 
                equipment related to construction) of the Spallation 
                Neutron Source, $103,279,000 for the period 
                encompassing fiscal years 2003 through 2006, to remain 
                available until expended through September 30, 2006.
            (3) Nanoscale science and engineering research.--
                    (A) Total authorization.--For activities under 
                section 169--
                            (i) for fiscal year 2003, $135,000,000;
                            (ii) for fiscal year 2004, $270,000,000;
                            (iii) for fiscal year 2005, $290,000,000;
                            (iv) for fiscal year 2006, $310,000,000; 
                        and
                            (v) for fiscal year 2007, $330,000,000.
                    (B) Research centers and major instrumentation.--
                From the amounts authorized under subparagraph (A), the 
                following sums are authorized to be appropriated to 
                carry out section 169(c):
                            (i) For fiscal year 2004, $135,000,000.
                            (ii) For fiscal year 2005, $150,000,000.
                            (iii) For fiscal year 2006, $120,000,000.
                            (iv) For fiscal year 2007, $100,000,000.
    (c) Limits on Use of Funds.--Of the funds authorized under 
subsection (b)(1), no funds shall be available for implementation of 
the plans described in sections 162 and 163.

                     PART 2--FUSION ENERGY SCIENCES

SEC. 162. PLAN FOR FUSION EXPERIMENT.

    (a) Plan for United States Fusion Experiment.--The Secretary, after 
consultation with the Fusion Energy Sciences Advisory Committee, shall 
develop a plan for construction in the United States of a magnetic 
fusion burning plasma experiment for the purpose of accelerating 
scientific understanding of fusion plasmas. The Secretary shall request 
a review of the plan by the National Academy of Sciences, and shall 
transmit the plan and the review to the Congress by July 1, 2004.
    (b) Requirements of Plan.--The plan described in subsection (a) 
shall--
            (1) address key burning plasma physics issues; and
            (2) include specific information on the scientific 
        capabilities of the proposed experiment, the relevance of these 
        capabilities to the goal of practical fusion energy, and the 
        overall design of the experiment including its estimated cost 
        and potential construction sites.
    (c) United States Participation in an International Experiment.--In 
addition to the plan described in subsection (a), the Secretary, after 
consultation with the Fusion Energy Sciences Advisory Committee, may 
also develop a plan for United States participation in an international 
burning plasma experiment for the same purpose, whose construction is 
found by the Secretary to be highly likely and where United States 
participation is cost effective relative to the cost and scientific 
benefits of a domestic experiment described in subsection (a). If the 
Secretary elects to develop a plan under this subsection, it shall 
include the information described in subsection (b), and an estimate of 
the cost of United States participation in such an international 
experiment. The Secretary shall request a review by the National 
Academy of Sciences of a plan developed under this subsection, and 
shall transmit the plan and the review to the Congress not later than 
July 1, 2004.
    (d) Authorization of Research and Development.--The Secretary, 
through the Office of Science, may conduct any research and development 
necessary to fully develop the plans described in this section.

SEC. 163. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary, after consultation with the Fusion Energy Sciences 
Advisory Committee, shall develop and transmit to the Congress a plan 
for the purpose of ensuring a strong scientific base for the Fusion 
Energy Sciences Program and to enable the experiments described in 
section 162. Such plan shall include as its objectives--
            (1) to ensure that existing fusion research facilities and 
        equipment are more fully utilized with appropriate measurements 
        and control tools;
            (2) to ensure a strengthened fusion science theory and 
        computational base;
            (3) to ensure that the selection of and funding for new 
        magnetic and inertial fusion research facilities are based on 
        scientific innovation and cost effectiveness;
            (4) to improve the communication of scientific results and 
        methods between the fusion science community and the wider 
        scientific community;
            (5) to ensure that adequate support is provided to optimize 
        the design of the magnetic fusion burning plasma experiments 
        referred to in section 162;
            (6) to ensure that inertial confinement fusion facilities 
        are utilized to the extent practicable for the purpose of 
        inertial fusion energy research and development; and
            (7) to develop a fusion-based energy source.

                   PART 3--SPALLATION NEUTRON SOURCE

SEC. 164. DEFINITION.

    For the purposes of this part, the term ``Spallation Neutron 
Source'' means Department Project 99-E-334, Oak Ridge National 
Laboratory, Oak Ridge, Tennessee.

SEC. 165. REPORT.

    The Secretary shall report on the Spallation Neutron Source as part 
of the Department's annual budget submission, including a description 
of the achievement of milestones, a comparison of actual costs to 
estimated costs, and any changes in estimated project costs or 
schedule.

SEC. 166. LIMITATIONS.

    The total amount obligated by the Department, including prior year 
appropriations, for the Spallation Neutron Source may not exceed--
            (1) $1,192,700,000 for costs of construction;
            (2) $219,000,000 for other project costs; and
            (3) $1,411,700,000 for total project cost.

                         PART 4--MISCELLANEOUS

SEC. 167. FACILITY AND INFRASTRUCTURE SUPPORT FOR NONMILITARY ENERGY 
              LABORATORIES.

    (a) Facility Policy.--The Secretary shall develop and implement a 
strategy for the nonmilitary energy laboratories and facilities of the 
Office of Science. Such strategy shall provide a cost-effective means 
for--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility modifications; and
            (4) building new facilities.
    (b) Report.--
            (1) Transmittal.--The Secretary shall prepare and transmit, 
        along with the President's budget request to the Congress for 
        fiscal year 2005, a report containing the strategy developed 
        under subsection (a).
            (2) Contents.--For each nonmilitary energy laboratory and 
        facility, such report shall contain--
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, including cost 
                and schedule requirements;
                    (B) a current ten-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                    (C) the total current budget for all facilities and 
                infrastructure funding; and
                    (D) the current status of each facilities and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 168. RESEARCH REGARDING PRECIOUS METAL CATALYSIS.

    From the amounts authorized to be appropriated to the Secretary 
under section 161, such sums as may be necessary for each of the fiscal 
years 2003, 2004, and 2005 may be used to carry out research in the use 
of precious metals (excluding platinum, palladium, and rhodium) in 
catalysis.

SEC. 169. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

    (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program of research, development, 
demonstration, and commercial application in nanoscience and 
nanoengineering. The program shall include efforts to further the 
understanding of the chemistry, physics, materials science, and 
engineering of phenomena on the scale of 1 to 100 nanometers.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) support both individual investigators and teams of 
        investigators, including multidisciplinary teams;
            (2) carry out activities under subsection (c);
            (3) support technology transfer activities to benefit 
        industry and other users of nanoscience and nanoengineering; 
        and
            (4) coordinate research and development activities with 
        industry and other Federal agencies.
    (c) Nanoscience and Nanoengineering Research Centers and Major 
Instrumentation.--
            (1) In general.--The Secretary shall carry out projects to 
        develop, plan, construct, acquire, operate, or support special 
        equipment, instrumentation, or facilities for investigators 
        conducting research and development in nanoscience and 
        nanoengineering.
            (2) Projects.--Projects under paragraph (1) may include the 
        measurement of properties at the scale of 1 to 100 nanometers, 
        manipulation at such scales, and the integration of 
        technologies based on nanoscience or nanoengineering into bulk 
        materials or other technologies.
            (3) Facilities.--Facilities under paragraph (1) may include 
        electron microcharacterization facilities, microlithography 
        facilities, scanning probe facilities, and related 
        instrumentation.
            (4) Collaboration.--The Secretary shall encourage 
        collaborations among institutions of higher education, 
        laboratories, and industry at facilities under this subsection.

SEC. 170. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) In General.--The Secretary, acting through the Office of 
Science, shall support a program to advance the Nation's computing 
capability across a diverse set of grand challenge computationally 
based science problems related to departmental missions.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) advance basic science through computation by developing 
        software to solve grand challenge science problems on new 
        generations of computing platforms;
            (2) enhance the foundations for scientific computing by 
        developing the basic mathematical and computing systems 
        software needed to take full advantage of the computing 
        capabilities of computers with peak speeds of 100 teraflops or 
        more, some of which may be unique to the scientific problem of 
        interest;
            (3) enhance national collaboratory and networking 
        capabilities by developing software to integrate geographically 
        separated researchers into effective research teams and to 
        facilitate access to and movement and analysis of large 
        (petabyte) data sets;
            (4) maintain a robust scientific computing hardware 
        infrastructure to ensure that the computing resources needed to 
        address departmental missions are available; and
            (5) explore new computing approaches and technologies that 
        promise to advance scientific computing.
    (c) High-Performance Computing Act of 1991 Amendments.--The High-
Performance Computing Act of 1991 is amended--
            (1) in section 4 (15 U.S.C. 5503)--
                    (A) in paragraph (3)--
                            (i) by striking ``means'' and inserting 
                        ``and `networking and information technology' 
                        mean''; and
                            (ii) by striking ``(including vector 
                        supercomputers and large scale parallel 
                        systems)''; and
                    (B) in paragraph (4), by striking ``packet 
                switched''; and
            (2) in section 203 (15 U.S.C. 5523)--
                    (A) in subsection (a), by striking all after ``As 
                part of the'' and inserting ``Networking and 
                Information Technology Research and Development 
                Program, the Secretary of Energy shall conduct basic 
and applied research in networking and information technology, with 
emphasis on--
            ``(1) supporting fundamental research in the physical 
        sciences and engineering, and energy applications;
            ``(2) providing supercomputer access and advanced 
        communication capabilities and facilities to scientific 
        researchers; and
            ``(3) developing tools for distributed scientific 
        collaboration.'';
                    (B) in subsection (b), by striking ``Program'' and 
                inserting ``Networking and Information Technology 
                Research and Development Program''; and
                    (C) in subsection (e)--
                            (i) by striking ``(1)'';
                            (ii) by striking ``the Program'' and all 
                        that follows through ``fiscal year 1996'' and 
                        inserting ``carrying out this section 
                        $285,000,000 for fiscal year 2003, $300,000,000 
                        for fiscal year 2004, $310,000,000 for fiscal 
                        year 2005, and $320,000,000 for fiscal year 
                        2006''; and
                            (iii) by striking paragraph (2).
    (d) Coordination.--The Secretary shall ensure that the program 
under this section is integrated and consistent with--
            (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Administration; and
            (2) other national efforts related to advanced scientific 
        computing for science and engineering.
    (e) Report.--(1) Before undertaking any new initiative to develop 
new advanced architecture for high-speed computing, the Secretary, 
through the Director of the Office of Science, shall transmit a report 
to the Congress describing--
            (A) the expected duration and cost of the initiative;
            (B) the technical milestones the initiative is designed to 
        achieve;
            (C) how institutions of higher education and private firms 
        will participate in the initiative; and
            (D) why the goals of the initiative could not be achieved 
        through existing programs.
    (2) No funds may be expended on any initiative described in 
paragraph (1) until 30 days after the report required by that paragraph 
is transmitted to the Congress.

                   Subtitle G--Energy and Environment

SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

    (a) United States-Mexico Energy Technology Cooperation.--The 
following sums are authorized to be appropriated to the Secretary to 
carry out activities under section 172:
            (1) For fiscal year 2003, $5,000,000.
            (2) For fiscal year 2004, $5,000,000.
            (3) For fiscal year 2005, $6,000,000.
            (4) For fiscal year 2006, $6,000,000.
            (5) For fiscal year 2007, $6,000,000.
    (b) Waste Reduction and Use of Alternatives.--There are authorized 
to be appropriated to the Secretary to carry out activities under 
section 173, $500,000 for fiscal year 2003.

SEC. 172. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.

    (a) Program.--The Secretary shall establish a research, 
development, demonstration, and commercial application program to be 
carried out in collaboration with entities in Mexico and the United 
States to promote energy efficient, environmentally sound economic 
development along the United States-Mexico border.
    (b) Program Management.--The program under subsection (a) shall be 
managed by the Department of Energy Carlsbad Environmental Management 
Field Office.
    (c) Technology Transfer.--In carrying out projects and activities 
under this section, the Secretary shall assess the applicability of 
technology developed under the Environmental Management Science Program 
of the Department.
    (d) Intellectual Property.--In carrying out this section, the 
Secretary shall comply with the requirements of any agreement entered 
into between the United States and Mexico regarding intellectual 
property protection.

SEC. 173. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) Grant Authority.--The Secretary is authorized to make a single 
grant to a qualified institution to examine and develop the feasibility 
of burning post-consumer carpet in cement kilns as an alternative 
energy source. The purposes of the grant shall include determining--
            (1) how post-consumer carpet can be burned without 
        disrupting kiln operations;
            (2) the extent to which overall kiln emissions may be 
        reduced;
            (3) the emissions of air pollutants and other relevant 
        environmental impacts; and
            (4) how this process provides benefits to both cement kiln 
        operations and carpet suppliers.
    (b) Qualified Institution.--For the purposes of subsection (a), a 
qualified institution is a research-intensive institution of higher 
education with demonstrated expertise in the fields of fiber recycling 
and logistical modeling of carpet waste collection and preparation.

SEC. 174. COAL GASIFICATION.

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

SEC. 175. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for at least 
one petroleum coke gasification polygeneration project.

SEC. 176. OTHER BIOPOWER AND BIOENERGY.

    The Secretary shall conduct a program to assist in the planning, 
design, and implementation of projects to convert rice straw, rice 
hulls, sugarcane bagasse, forest thinnings, and barley grain into 
biopower and biofuels.

SEC. 177. TECHNOLOGY TRANSFER.

    There are authorized to be appropriated to the Secretary $1,000,000 
for a competitively awarded contract, to an entity with offshore oil 
and gas management experience, for the transfer of technologies 
relating to ultra-deepwater research and development developed at the 
Naval Surface Warfare Center, Carderock Division.

SEC. 178. COAL TECHNOLOGY LOAN.

    There are authorized to be appropriated to the Secretary 
$125,000,000 to provide a loan to the owner of the experimental plant 
constructed under United States Department of Energy cooperative 
agreement number DE-FC22-91PC99544 on such terms and conditions as the 
Secretary determines, including interest rates and upfront payments.

                         Subtitle H--Management

SEC. 181. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department under this 
title shall remain available until expended.

SEC. 182. COST SHARING.

    (a) Research and Development.--Except as otherwise provided in this 
title, for research and development programs carried out under this 
title, the Secretary shall require a commitment from non-Federal 
sources of at least 20 percent of the cost of the project. The 
Secretary may reduce or eliminate the non-Federal requirement under 
this subsection if the Secretary determines that the research and 
development is of a basic or fundamental nature.
    (b) Demonstration and Commercial Application.--Except as otherwise 
provided in this title, the Secretary shall require at least 50 percent 
of the costs directly and specifically related to any demonstration or 
commercial application project under this title to be provided from 
non-Federal sources. The Secretary may reduce the non-Federal 
requirement under this subsection if the Secretary determines that the 
reduction is necessary and appropriate considering the technological 
risks involved in the project and is necessary to meet the objectives 
of this title.
    (c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may 
include personnel, services, equipment, and other resources.

SEC. 183. MERIT REVIEW OF PROPOSALS.

    Awards of funds authorized under this title shall be made only 
after an impartial review of the scientific and technical merit of the 
proposals for such awards has been carried out by or for the 
Department.

SEC. 184. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--(1) 
The Secretary shall establish one or more advisory boards to review 
Department research, development, demonstration, and commercial 
application programs in the following areas:
            (A) Energy efficiency.
            (B) Renewable energy.
            (C) Nuclear energy.
            (D) Fossil energy.
    (2) The Secretary may designate an existing advisory board within 
the Department to fulfill the responsibilities of an advisory board 
under this subsection, and may enter into appropriate arrangements with 
the National Academy of Sciences to establish such an advisory board.
    (b) Utilization of Existing Committees.--The Secretary shall 
continue to use the scientific program advisory committees chartered 
under the Federal Advisory Committee Act by the Office of Science to 
oversee research and development programs under that Office.
    (c) Membership.--Each advisory board under this section shall 
consist of persons with appropriate expertise representing a diverse 
range of interests.
    (d) Meetings and Purposes.--Each advisory board under this section 
shall meet at least semi-annually to review and advise on the progress 
made by the respective research, development, demonstration, and 
commercial application program or programs. The advisory board shall 
also review the measurable cost and performance-based goals for such 
programs as established under section 102, and the progress on meeting 
such goals.
    (e) Periodic Reviews and Assessments.--The Secretary shall enter 
into appropriate arrangements with the National Academy of Sciences to 
conduct periodic reviews and assessments of the programs authorized by 
this title, the measurable cost and performance-based goals for such 
programs as established under section 102, if any, and the progress on 
meeting such goals. Such reviews and assessments shall be conducted 
every 5 years, or more often as the Secretary considers necessary, and 
the Secretary shall transmit to the Congress reports containing the 
results of all such reviews and assessments.

SEC. 185. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.

    (a) Technology Transfer Coordinator.--The Secretary shall designate 
a Technology Transfer Coordinator to perform oversight of and policy 
development for technology transfer activities at the Department. The 
Technology Transfer Coordinator shall coordinate the activities of the 
Technology Transfer Working Group, and shall oversee the expenditure of 
funds allocated to the Technology Transfer Working Group, and shall 
coordinate with each technology partnership ombudsman appointed under 
section 11 of the Technology Transfer Commercialization Act of 2000 (42 
U.S.C. 7261c).
    (b) Technology Transfer Working Group.--The Secretary shall 
establish a Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities, to--
            (1) coordinate technology transfer activities occurring at 
        National Laboratories and single-purpose research facilities;
            (2) exchange information about technology transfer 
        practices, including alternative approaches to resolution of 
        disputes involving intellectual property rights and other 
        technology transfer matters; and
            (3) develop and disseminate to the public and prospective 
        technology partners information about opportunities and 
        procedures for technology transfer with the Department, 
        including those related to alternative approaches to resolution 
        of disputes involving intellectual property rights and other 
        technology transfer matters.
    (c) Technology Transfer Responsibility.--Nothing in this section 
shall affect the technology transfer responsibilities of Federal 
employees under the Stevenson-Wydler Technology Innovation Act of 1980.

SEC. 186. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
    (b) Purpose.--The purpose of the Technology Infrastructure Program 
shall be to improve the ability of National Laboratories and single-
purpose research facilities to support departmental missions by--
            (1) stimulating the development of technology clusters that 
        can support departmental missions at the National Laboratories 
        or single-purpose research facilities;
            (2) improving the ability of National Laboratories and 
        single-purpose research facilities to leverage and benefit from 
        commercial research, technology, products, processes, and 
        services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between National Laboratories or 
        single-purpose research facilities and--
                    (A) institutions of higher education;
                    (B) technology-related business concerns;
                    (C) nonprofit institutions; and
                    (D) agencies of State, tribal, or local 
                governments,
        that can support departmental missions at the National 
        Laboratories or single-purpose research facilities.
    (c) Projects.--The Secretary shall authorize the Director of each 
National Laboratory or single-purpose research facility to implement 
the Technology Infrastructure Program at such National Laboratory or 
facility through projects that meet the requirements of subsections (d) 
and (e).
    (d) Program Requirements.--Each project funded under this section 
shall meet the following requirements:
            (1) Minimum participants.--Each project shall at a minimum 
        include one of the following entities:
                    (A) A business.
                    (B) An institution of higher education.
                    (C) A nonprofit institution.
                    (D) An agency of a State, local, or tribal 
                government.
            (2) Cost sharing.--
                    (A) Minimum amount.--Not less than 50 percent of 
                the costs of each project funded under this section 
                shall be provided from non-Federal sources.
                    (B) Qualified funding and resources.--(i) The 
                calculation of costs paid by the non-Federal sources to 
                a project shall include cash, personnel, services, 
                equipment, and other resources expended on the project.
                    (ii) Independent research and development expenses 
                of Government contractors that qualify for 
                reimbursement under section 31-205-18(e) of the Federal 
                Acquisition Regulations issued pursuant to section 
                25(c)(1) of the Office of Federal Procurement Policy 
                Act (41 U.S.C. 421(c)(1)) may be credited towards costs 
                paid by non-Federal sources to a project, if the 
                expenses meet the other requirements of this section.
                    (iii) No funds or other resources expended either 
                before the start of a project under this section or 
                outside the project's scope of work shall be credited 
                toward the costs paid by the non-Federal sources to the 
                project.
            (3) Competitive selection.--All projects under this section 
        shall be competitively selected using procedures determined by 
        the Secretary.
            (4) Accounting standards.--Any participant that receives 
        funds under this section may use generally accepted accounting 
        principles for maintaining accounts, books, and records 
        relating to the project.
            (5) Limitations.--No Federal funds shall be made available 
        under this section for--
                    (A) construction; or
                    (B) any project for more than 5 years.
    (e) Selection Criteria.--
            (1) Threshold funding criteria.--The Secretary shall 
        allocate funds under this section only if the Director of the 
        National Laboratory or single-purpose research facility 
        managing the project determines that the project is likely to 
        improve the ability of the National Laboratory or single-
        purpose research facility to achieve technical success in 
        meeting departmental missions.
            (2) Additional criteria.--The Secretary shall consider the 
        following criteria in selecting a project to receive Federal 
        funds:
                    (A) The potential of the project to succeed, based 
                on its technical merit, team members, management 
                approach, resources, and project plan.
                    (B) The potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster, which will derive most of the demand for its 
                products or services from the private sector, and which 
                will support departmental missions at the participating 
                National Laboratory or single-purpose research 
                facility.
                    (C) The potential of the project to promote the use 
                of commercial research, technology, products, 
                processes, and services by the participating National 
                Laboratory or single-purpose research facility to 
                achieve its departmental mission or the commercial 
                development of technological innovations made at the 
                participating National Laboratory or single-purpose 
                research facility.
                    (D) The commitment shown by non-Federal 
                organizations to the project, based primarily on the 
                nature and amount of the financial and other resources 
                they will risk on the project.
                    (E) The extent to which the project involves a wide 
                variety and number of institutions of higher education, 
                nonprofit institutions, and technology-related business 
                concerns that can support the missions of the 
participating National Laboratory or single-purpose research facility 
and that will make substantive contributions to achieving the goals of 
the project.
                    (F) The extent of participation in the project by 
                agencies of State, tribal, or local governments that 
                will make substantive contributions to achieving the 
                goals of the project.
                    (G) The extent to which the project focuses on 
                promoting the development of technology-related 
                business concerns that are small businesses or involves 
                such small businesses substantively in the project.
                    (H) Such other criteria as the Secretary determines 
                to be appropriate.
    (f) Allocation.--In allocating funds for projects approved under 
this section, the Secretary shall provide--
            (1) the Federal share of the project costs; and
            (2) additional funds to the National Laboratory or single-
        purpose research facility managing the project to permit the 
        National Laboratory or single-purpose research facility to 
        carry out activities relating to the project, and to coordinate 
        such activities with the project.
    (g) Report to Congress.--Not later than January 1, 2005, the 
Secretary shall report to Congress on whether the Technology 
Infrastructure Program should be continued and, if so, how the program 
should be managed.
    (h) Definitions.--In this section:
            (1) Technology cluster.--The term ``technology cluster'' 
        means a group of--
                    (A) technology-related business concerns;
                    (B) institutions of higher education; or
                    (C) other nonprofit institutions,
        that reinforce each other's performance in the areas of 
        technology development through formal or informal 
        relationships.
            (2) Technology-related business concern.--The term 
        ``technology-related business concern'' means a for-profit 
        corporation, company, association, firm, partnership, or small 
        business concern that--
                    (A) conducts scientific or engineering research;
                    (B) develops new technologies;
                    (C) manufactures products based on new 
                technologies; or
                    (D) performs technological services.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2003 and 2004.

SEC. 187. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to designate a small business 
advocate to--
            (1) increase the participation of small business concerns, 
        including socially and economically disadvantaged small 
        business concerns, in procurement, collaborative research, 
        technology licensing, and technology transfer activities 
        conducted by the National Laboratory or single-purpose research 
        facility;
            (2) report to the Director of the National Laboratory or 
        single-purpose research facility on the actual participation of 
        small business concerns in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
            (3) make available to small business concerns training, 
        mentoring, and clear, up-to-date information on how to 
        participate in the procurement and collaborative research, 
        including how to submit effective proposals, and information 
        related to alternative approaches to resolution of disputes 
        involving intellectual property rights and other technology 
        transfer matters;
            (4) increase the awareness inside the National Laboratory 
        or single-purpose research facility of the capabilities and 
        opportunities presented by small business concerns; and
            (5) establish guidelines for the program under subsection 
        (b) and report on the effectiveness of such program to the 
        Director of the National Laboratory or single-purpose research 
        facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the Director of a single-purpose research facility, to 
establish a program to provide small business concerns--
            (1) assistance directed at making them more effective and 
        efficient subcontractors or suppliers to the National 
        Laboratory or single-purpose research facility; or
            (2) general technical assistance, the cost of which shall 
        not exceed $10,000 per instance of assistance, to improve the 
        small business concern's products or services.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to the small business concerns.
    (d) Definitions.--In this section:
            (1) Small business concern.--The term ``small business 
        concern'' has the meaning given such term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
            (2) Socially and economically disadvantaged small business 
        concerns.--The term ``socially and economically disadvantaged 
        small business concerns'' has the meaning given such term in 
        section 8(a)(4) of the Small Business Act (15 U.S.C. 
        637(a)(4)).

SEC. 188. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit a report to the Congress identifying any 
policies or procedures of a contractor operating a National Laboratory 
or single-purpose research facility that create disincentives to the 
temporary transfer of scientific and technical personnel among the 
contractor-operated National Laboratories or contractor-operated 
single-purpose research facilities.

SEC. 189. NATIONAL ACADEMY OF SCIENCES REPORT.

    Within 90 days after the date of enactment of this Act, the 
Secretary shall enter into an arrangement with the National Academy of 
Sciences for the Academy to--
            (1) conduct a study on--
                    (A) the obstacles to accelerating the research, 
                development, demonstration, and commercial application 
                cycle for energy technology; and
                    (B) the adequacy of Department policies and 
                procedures for, and oversight of, technology transfer-
                related disputes between contractors of the Department 
                and the private sector; and
            (2) report to the Congress on recommendations developed as 
        a result of the study.

SEC. 190. OUTREACH.

    The Secretary shall ensure that each program authorized by this 
title includes an outreach component to provide information, as 
appropriate, to manufacturers, consumers, engineers, architects, 
builders, energy service companies, institutions of higher education, 
facility planners and managers, State and local governments, and other 
entities.

SEC. 191. LIMITS ON USE OF FUNDS.

    (a) Competitive Procedure Requirement.--None of the funds 
authorized to be appropriated to the Secretary by this title may be 
used to award a management and operating contract for a nonmilitary 
energy laboratory of the Department unless such contract is 
competitively awarded or the Secretary grants, on a case-by-case basis, 
a waiver to allow for such a deviation. The Secretary may not delegate 
the authority to grant such a waiver.
    (b) Congressional Notice.--At least 2 months before a contract 
award for which the Secretary intends to grant such a waiver, the 
Secretary shall submit to the Congress a report notifying the Congress 
of the waiver and setting forth the reasons for the waiver.

SEC. 192. REPROGRAMMING.

    (a) Distribution Report.--Not later than 60 days after the date of 
the enactment of an Act appropriating amounts authorized under this 
title, the Secretary shall transmit to the appropriate authorizing 
committees of the Congress a report explaining how such amounts will be 
distributed among the authorizations contained in this title.
    (b) Prohibition.--(1) No amount identified under subsection (a) 
shall be reprogrammed if such reprogramming would result in an 
obligation which changes an individual distribution required to be 
reported under subsection (a) by more than 5 percent unless the 
Secretary has transmitted to the appropriate authorizing committees of 
the Congress a report described in subsection (c) and a period of 30 
days has elapsed after such committees receive the report.
    (2) In the computation of the 30-day period described in paragraph 
(1), there shall be excluded any day on which either House of Congress 
is not in session because of an adjournment of more than 3 days to a 
day certain.
    (c) Reprogramming Report.--A report referred to in subsection 
(b)(1) shall contain a full and complete statement of the action 
proposed to be taken and the facts and circumstances relied on in 
support of the proposed action.

SEC. 193. CONSTRUCTION WITH OTHER LAWS.

    Except as otherwise provided in this title, the Secretary shall 
carry out the research, development, demonstration, and commercial 
application programs, projects, and activities authorized by this title 
in accordance with the applicable provisions of the Atomic Energy Act 
of 1954 (42 U.S.C. et seq.), the Federal Nonnuclear Research and 
Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy Policy Act 
of 1992 (42 U.S.C. 13201 et seq.), the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), chapter 18 of title 
35, United States Code (commonly referred to as the Bayh-Dole Act), and 
any other Act under which the Secretary is authorized to carry out such 
activities.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 201. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (41 
U.S.C. 7139) is amended to read as follows:

                          ``office of science

    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary of Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary of Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
    (b) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--(1) Section 203(a) of the 
Department of Energy Organization Act (42 U.S.C. 7133(a)) is amended by 
striking ``There shall be in the Department six Assistant Secretaries'' 
and inserting ``Except as provided in section 209, there shall be in 
the Department seven Assistant Secretaries''.
    (2) It is the sense of the Congress that the leadership for 
departmental missions in nuclear energy should be at the Assistant 
Secretary level.
    (c) Technical and Conforming Amendments.--(1) Section 5315 of title 
5, United States Code, is amended by--
            (A) striking ``Director, Office of Science, Department of 
        Energy.''; and
            (B) striking ``Assistant Secretaries of Energy (6)'' and 
        inserting ``Assistant Secretaries of Energy (8)''.
    (2) The table of contents for the Department of Energy Organization 
Act (42 U.S.C. 7101 note) is amended--
            (A) by striking ``Section 209'' and inserting ``Sec. 209'';
            (B) by striking ``213.'' and inserting ``Sec. 213.'';
            (C) by striking ``214.'' and inserting ``Sec. 214.'';
            (D) by striking ``215.'' and inserting ``Sec. 215.''; and
            (E) by striking ``216.'' and inserting ``Sec. 216.''.

                     TITLE III--CLEAN SCHOOL BUSES

SEC. 301. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Secretary of Energy, in consultation with 
the Administrator of the Environmental Protection Agency, shall 
establish a pilot program for awarding grants on a competitive basis to 
eligible entities for the demonstration and commercial application of 
alternative fuel school buses and ultra-low sulfur diesel school buses.
    (b) Requirements.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall establish and publish in the 
Federal register grant requirements on eligibility for assistance, and 
on implementation of the program established under subsection (a), 
including certification requirements to ensure compliance with this 
title.
    (c) Solicitation.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall solicit proposals for grants 
under this section.
    (d) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to a local or State governmental entity responsible for 
        providing school bus service to one or more public school 
        systems or responsible for the purchase of school buses; or
            (2) to a contracting entity that provides school bus 
        service to one or more public school systems, if the grant 
        application is submitted jointly with the school system or 
        systems which the buses will serve.
    (e) Types of Grants.--
            (1) In general.--Grants under this section shall be for the 
        demonstration and commercial application of technologies to 
        facilitate the use of alternative fuel school buses and ultra-
        low sulfur diesel school buses in lieu of buses manufactured 
        before model year 1977 and diesel-powered buses manufactured 
        before model year 1991.
            (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
            (3) Priority of grant applications.--The Secretary shall 
        give priority to awarding grants to applicants who can 
        demonstrate the use of alternative fuel buses and ultra-low 
        sulfur diesel school buses in lieu of buses manufactured before 
        model year 1977.
    (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
            (1) All buses acquired with funds provided under the grant 
        shall be operated as part of the school bus fleet for which the 
        grant was made for a minimum of 5 years.
            (2) Funds provided under the grant may only be used--
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school buses or 
                ultra-low sulfur diesel school buses, including State 
                taxes and contract fees; and
                    (B) to provide--
                            (i) up to 10 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will only be available to the 
                        grant recipient; and
                            (ii) up to 15 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will be available to the grant 
                        recipient and to other bus fleets.
            (3) The grant recipient shall be required to provide at 
        least the lesser of 15 percent of the total cost of each bus 
        received or $15,000 per bus.
            (4) In the case of a grant recipient receiving a grant to 
        demonstrate ultra-low sulfur diesel school buses, the grant 
        recipient shall be required to provide documentation to the 
        satisfaction of the Secretary that diesel fuel containing 
        sulfur at not more than 15 parts per million is available for 
        carrying out the purposes of the grant, and a commitment by the 
        applicant to use such fuel in carrying out the purposes of the 
        grant.
    (g) Buses.--Funding under a grant made under this section may be 
used to demonstrate the use only of new alternative fuel school buses 
or ultra-low sulfur diesel school buses--
            (1) with a gross vehicle weight of greater than 14,000 
        pounds;
            (2) that are powered by a heavy duty engine;
            (3) that, in the case of alternative fuel school buses 
        manufactured in model years 2003 through 2006, emit not more 
        than 1.8 grams per brake horsepower-hour of nonmethane 
        hydrocarbons and oxides of nitrogen and .01 grams per brake 
        horsepower-hour of particulate matter; and
            (4) that, in the case of ultra-low sulfur diesel school 
        buses, emit not more than--
                    (A) for buses manufactured in model year 2003, 3.0 
                grams per brake horsepower-hour of oxides of nitrogen 
                and .01 grams per brake horsepower-hour of particulate 
                matter; and
                    (B) for buses manufactured in model years 2004 
                through 2006, 2.5 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter,
        except that under no circumstances shall buses be acquired 
        under this section that emit nonmethane hydrocarbons, oxides of 
        nitrogen, or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel school buses commercially available at the time the 
        grant is made.
    (h) Deployment and Distribution.--The Secretary shall seek to the 
maximum extent practicable to achieve nationwide deployment of 
alternative fuel school buses and ultra-low sulfur diesel school buses 
through the program under this section, and shall ensure a broad 
geographic distribution of grant awards, with a goal of no State 
receiving more than 10 percent of the grant funding made available 
under this section for a fiscal year.
    (i) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for any fiscal year for the acquisition of 
ultra-low sulfur diesel school buses.
    (j) Annual Report.--Not later than January 31 of each year, the 
Secretary of Energy shall provide a report evaluating implementation of 
the program under this title to the Congress. Such report shall include 
the total number of grant applications received, the number and types 
of alternative fuel buses and ultra-low sulfur diesel school buses 
requested in grant applications, a list of grants awarded and the 
criteria used to select the grant recipients, certified engine emission 
levels of all buses purchased under the program, and any other 
information the Secretary considers appropriate.
    (k) Definitions.--For purposes of this section--
            (1) the term ``alternative fuel school bus'' means a bus 
        powered substantially by electricity (including electricity 
        supplied by a fuel cell), or by liquefied natural gas, 
        compressed natural gas, liquefied petroleum gas, hydrogen, 
        propane, or methanol or ethanol at no less than 85 percent by 
        volume; and
            (2) the term ``ultra-low sulfur diesel school bus'' means a 
        school bus powered by diesel fuel which contains sulfur at not 
        more than 15 parts per million.

SEC. 302. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish a 
program for entering into cooperative agreements with private sector 
fuel cell bus developers for the development of fuel cell-powered 
school buses, and subsequently with not less than 2 units of local 
government using natural gas-powered school buses and such private 
sector fuel cell bus developers to demonstrate the use of fuel cell-
powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for activities 
funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Funding.--No more than $25,000,000 of the amounts authorized 
under section 303 may be used for carrying out this section for the 
period encompassing fiscal years 2004 through 2006.
    (d) Reports to Congress.--Not later than 3 years after the date of 
the enactment of this Act, and not later than October 1, 2006, the 
Secretary shall transmit to the Congress a report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school buses; 
        and
            (2) assesses the results of the development and 
        demonstration program under this section.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for 
carrying out this title, to remain available until expended--
            (1) $60,000,000 for fiscal year 2003;
            (2) $70,000,000 for fiscal year 2004;
            (3) $80,000,000 for fiscal year 2005; and
            (4) $90,000,000 for fiscal year 2006.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES

SEC. 401. DEFINITIONS.

    For the purposes of this title, the following definitions apply:
            (1) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' means a vehicle propelled solely on an 
        alternative fuel as defined in section 301 of the Energy Policy 
        Act (42 U.S.C. 13211), except the term does not include any 
        vehicle that the Secretary determines, by rule, does not yield 
        substantial environmental benefits over a vehicle operating 
        solely on gasoline or diesel derived from fossil fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means a vehicle propelled by one or more cells that convert 
        chemical energy directly into electricity by combining oxygen 
        with hydrogen fuel which is stored on board the vehicle in any 
        form and may or may not require reformation prior to use.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means a 
        medium or heavy duty vehicle propelled by an internal 
        combustion engine using any combustible fuel and an onboard 
        rechargeable battery storage system.
            (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle that qualifies as 
        both--
                    (A) a low-speed vehicle, as such term is defined in 
                section 571.3(b) of title 49, Code of Federal 
                Regulations; and
                    (B) a zero-emission vehicle, as such term is 
                defined in section 86.1702-99 of title 40, Code of 
                Federal Regulations.
            (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 402.
            (6) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in model 
        years 2004 through 2006 powered by a heavy-duty diesel engine 
        that--
                    (A) is fueled by diesel fuel which contains sulfur 
                at not more than 15 parts per million; and
                    (B) emits not more than the lesser of--
                            (i) for vehicles manufactured in--
                                    (I) model year 2003, 3.0 grams per 
                                brake horsepower-hour of oxides of 
                                nitrogen and .01 grams per brake 
                                horsepower-hour of particulate matter; 
                                and
                                    (II) model years 2004 through 2006, 
                                2.5 grams per brake horsepower-hour of 
                                nonmethane hydrocarbons and oxides of 
                                nitrogen and .01 grams per brake 
                                horsepower-hour of particulate matter; 
                                or
                            (ii) the emissions of nonmethane 
                        hydrocarbons, oxides of nitrogen, and 
                        particulate matter of the best performing 
                        technology of ultra-low sulfur diesel vehicles 
                        of the same class and application that are 
                        commercially available.

SEC. 402. PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish a competitive 
grant pilot program, to be administered through the Clean Cities 
Program of the Department of Energy, to provide not more than 15 
geographically dispersed project grants to State governments, local 
governments, or metropolitan transportation authorities to carry out a 
project or projects for the purposes described in subsection (b).
    (b) Grant Purposes.--Grants under this section may be used for the 
following purposes:
            (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including--
                    (A) passenger vehicles including neighborhood 
                electric vehicles; and
                    (B) motorized two-wheel bicycles, scooters, or 
                other vehicles for use by law enforcement personnel or 
                other State or local government or metropolitan 
                transportation authority employees.
            (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or services; and
                    (C) ground support vehicles at public airports, 
                including vehicles to carry baggage or push airplanes 
                away from terminal gates.
            (3) The acquisition of ultra-low sulfur diesel vehicles.
            (4) Infrastructure necessary to directly support an 
        alternative fueled vehicle, fuel cell vehicle, or hybrid 
        vehicle project funded by the grant, including fueling and 
        other support equipment.
            (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
    (c) Applications.--
            (1) Requirements.--The Secretary shall issue requirements 
        for applying for grants under the pilot program. At a minimum, 
        the Secretary shall require that applications be submitted by 
        the head of a State or local government or a metropolitan 
        transportation authority, or any combination thereof, and a 
        registered participant in the Clean Cities Program of the 
        Department of Energy, and shall include--
                    (A) at least one project to enable passengers or 
                goods to be transferred directly from vehicles acquired 
                under this section to a local, regional, or national 
                transportation system;
                    (B) a description of the projects proposed in the 
                application, including how they meet the requirements 
                of this title;
                    (C) an estimate of the ridership or degree of use 
                of the projects proposed in the application;
                    (D) an estimate of the air pollution emissions 
                reduced and fossil fuel displaced as a result of the 
                projects proposed in the application, and a plan to 
                collect and disseminate environmental data, related to 
                the projects to be funded under the grant, over the 
                life of the projects;
                    (E) a description of how the projects proposed in 
                the application will be sustainable without Federal 
                assistance after the completion of the term of the 
                grant;
                    (F) a complete description of the costs of each 
                project proposed in the application, including 
                acquisition, construction, operation, and maintenance 
                costs over the expected life of the project;
                    (G) a description of which costs of the projects 
                proposed in the application will be supported by 
                Federal assistance under this title; and
                    (H) documentation to the satisfaction of the 
                Secretary that diesel fuel containing sulfur at not 
                more than 15 parts per million is available for 
                carrying out the projects, and a commitment by the 
                applicant to use such fuel in carrying out the 
                projects.
            (2) Partners.--An applicant under paragraph (1) may carry 
        out projects under the pilot program in partnership with public 
        and private entities.
    (d) Selection Criteria.--In evaluating applications under the pilot 
program, the Secretary shall consider each applicant's previous 
experience with similar projects and shall give priority consideration 
to applications that--
            (1) are most likely to maximize protection of the 
        environment;
            (2) demonstrate the greatest commitment on the part of the 
        applicant to ensure funding for the proposed projects and the 
        greatest likelihood that each project proposed in the 
        application will be maintained or expanded after Federal 
        assistance under this title is completed; and
            (3) exceed the minimum requirements of subsection 
        (c)(1)(A).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not provide more 
        than $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
            (2) Cost sharing.--The Secretary shall not provide more 
        than 50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
            (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
            (4) Deployment and distribution.--The Secretary shall seek 
        to the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
            (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
        interested parties, including other applicants that submitted 
        applications.
    (f) Schedule.--
            (1) Publication.--Not later than 3 months after the date of 
        the enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due within 6 
        months of the publication of the notice.
            (2) Selection.--Not later than 6 months after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer review all applications for 
        projects to be awarded a grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for the acquisition of ultra-low sulfur 
diesel vehicles.

SEC. 403. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 2 months after the date grants 
are awarded under this title, the Secretary shall transmit to the 
Congress a report containing--
            (1) an identification of the grant recipients and a 
        description of the projects to be funded;
            (2) an identification of other applicants that submitted 
        applications for the pilot program; and
            (3) a description of the mechanisms used by the Secretary 
        to ensure that the information and knowledge gained by 
        participants in the pilot program are transferred among the 
        pilot program participants and to other interested parties, 
        including other applicants that submitted applications.
    (b) Evaluation.--Not later than 3 years after the date of the 
enactment of this Act, and annually thereafter until the pilot program 
ends, the Secretary shall transmit to the Congress a report containing 
an evaluation of the effectiveness of the pilot program, including an 
assessment of the benefits to the environment derived from the projects 
included in the pilot program as well as an estimate of the potential 
benefits to the environment to be derived from widespread application 
of alternative fueled vehicles and ultra-low sulfur diesel vehicles.

SEC. 404. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary 
$200,000,000 to carry out this title, to remain available until 
expended.

                          TITLE V--CLEAN COAL

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--Except as provided in subsection 
(b), there are authorized to be appropriated to the Secretary to carry 
out the activities authorized by this title $200,000,000 for each of 
the fiscal years 2003 through 2011, to remain available until expended.
    (b) Limit on Use of Funds.--Notwithstanding subsection (a), no 
funds may be used to carry out the activities authorized by this title 
after September 30, 2003, unless the Secretary has transmitted to the 
Committee on Energy and Commerce and the Committee on Science of the 
House of Representatives, and to the Senate, the report required by 
this subsection and one month has elapsed since that transmission. The 
report shall include, with respect to subsection (a), a 10-year plan 
containing--
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; and
            (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.
    (c) Applicability.--Subsection (b) shall not apply to any project 
begun before September 30, 2003.

SEC. 502. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding under this 
title for any project that does not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in operation or have been demonstrated as of the 
date of the enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification.--(A) In allocating the funds made 
        available under section 501(a), the Secretary shall ensure that 
        at least 80 percent of the funds are used only for projects on 
        coal-based gasification technologies, including gasification 
        combined cycle, gasification fuel cells, gasification 
        coproduction, and hybrid gasification/combustion.
            (B) The Secretary shall set technical milestones specifying 
        emissions levels that coal gasification projects must be 
        designed to and reasonably expected to achieve. The milestones 
        shall get more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2020 coal 
        gasification projects able--
                    (i) to remove 99 percent of sulfur dioxide;
                    (ii) to emit no more than .05 lbs of NOx per 
                million BTU;
                    (iii) to achieve substantial reductions in mercury 
                emissions; and
                    (iv) to achieve a thermal efficiency of--
                            (I) 60 percent for coal of more than 9,000 
                        Btu;
                            (II) 59 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (III) 57 percent for coal of less than 
                        7,000 Btu.
            (2) Other projects.--For projects not described in 
        paragraph (1), the Secretary shall set technical milestones 
        specifying emissions levels that the projects must be designed 
        to and reasonably expected to achieve. The milestones shall get 
        more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2010 projects able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NOx per million 
                BTU;
                    (C) to achieve substantial reductions in mercury 
                emissions; and
                    (D) to achieve a thermal efficiency of--
                            (i) 45 percent for coal of more than 9,000 
                        Btu;
                            (ii) 44 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (iii) 42 percent for coal of less than 
                        7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2), the Secretary shall consult 
        with the Administrator of the Environmental Protection Agency 
        and interested entities, including coal producers, industries 
        using coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and organizations 
        representing workers.
            (4) Existing units.--In the case of projects at existing 
        units, in lieu of the thermal efficiency requirements set forth 
        in paragraph (1)(B)(iv) and (2)(D), the projects shall be 
        designed to achieve an overall thermal design efficiency 
        improvement compared to the efficiency of the unit as operated, 
        of not less than--
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
            (5) Permitted uses.--In allocating funds made available 
        under section 501, the Secretary may fund projects that 
        include, as part of the project, the separation and capture of 
        carbon dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that--
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the award funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of the enactment 
        of this Act.
    (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.
    (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under this title.

SEC. 503. REPORT.

    Not later than 1 year after the date of the enactment of this Act, 
and once every 2 years thereafter through 2011, the Secretary, in 
consultation with other appropriate Federal agencies, shall transmit to 
the Committee on Energy and Commerce and the Committee on Science of 
the House of Representatives, and to the Senate, a report describing--
            (1) the technical milestones set forth in section 502 and 
        how those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2) of section 
        502; and
            (2) the status of projects funded under this title.

SEC. 504. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 501, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.
                                 <all>
Energy Research, Development, Demonstration, and Commercial Application Act of 2003

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