Natural Gas Price Reduction Act of 2005 - Amends the Energy Policy and Conservation Act to prescribe implementation guidelines for broad-based energy conservation and energy efficiency programs that include: (1) reducing residential demand and expanded appliance and equipment efficiency standards; (2) deployment for distributed generation, solar energy technologies, and biomass; (3) hydrogen and fuel cell initiative; and (4) demand side management that provides smart metering and net metering.
Amends the Public Utility Regulatory Policies Act of 1978 to cite circumstances for the termination of mandatory sale and purchase requirements with respect to electric power from a qualifying cogeneration facility or a qualifying small power production facility.
Directs the Administrator of the Environmental Protection Agency to promulgate regulations to revise the permitting requirements of the Clean Air Act. Prescribes guidelines for expedited review of preconstruction requirements under such Act.
Sets forth a broad-based oil and gas lease production program that includes: (1) royalty relief for deep water production; (2) coastal impact assistance program; (3) Rocky Mountain gas production; (4) gas methane research; (5) gas hydrate production incentives; and (6) marginal property production incentives.
Directs the President to establish an Office of Federal Energy Project Coordination.
Directs the Secretary of the Interior to: (1) review current Federal onshore oil and gas leasing and permitting practices; and (2) establish a Federal permit streamlining pilot project.
Prescribes guidelines for an energy infrastructure that includes: (1) siting, construction, and operation of natural gas importation and exportation, including offshore facilities; (2) natural gas pipeline infrastructure; and (3) natural gas storage facilities.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 726 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 726
To promote the conservation and production of natural gas.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 6, 2005
Mr. Alexander (for himself and Mr. Johnson) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To promote the conservation and production of natural gas.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Natural Gas Price
Reduction Act of 2005''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
Sec. 101. Public education and conservation initiative.
Sec. 102. Reducing residential demand; appliance and equipment
efficiency standards.
Sec. 103. Deployment for distributed generation, solar energy
technologies, and biomass.
Sec. 104. Hydrogen and fuel cell initiative.
Sec. 105. Clarification of cogeneration contracts.
Sec. 106. Cogeneration development.
Sec. 107. Efficient dispatch of natural gas power plants.
Sec. 108. Demand side management for industrials and utilities: net
metering and other standards.
Sec. 109. Demand side management for residential customers: smart
metering.
Sec. 110. Protecting industrial cogenerators.
Sec. 111. Reduction of dependence on imported petroleum.
Sec. 112. National gasification strategy for power sector.
Sec. 113. Industrial gasification demonstration and deployment program.
Sec. 114. Carbon capture and sequestration energy efficiency research
and development.
TITLE II--PRODUCTION
Sec. 201. Gas only leases.
Sec. 202. Eastern Gulf of Mexico.
Sec. 203. Review of State requests to examine OCS energy areas.
Sec. 204. Royalty relief for deep water production.
Sec. 205. Coastal impact assistance program.
Sec. 206. Rocky Mountain gas production.
Sec. 207. Gas methane research.
Sec. 208. Alaska Natural Gas Pipeline Act.
Sec. 209. Gas hydrate production incentives.
Sec. 210. Oil and gas exploration and production defined.
Sec. 211. Marginal property production incentives.
Sec. 212. Efficient government processing of permit applications.
Sec. 213. Deadline for decision on appeals of consistency
determination.
Sec. 214. Outer Continental Shelf provisions.
Sec. 215. Office of Federal Energy Project Coordination.
Sec. 216. Federal onshore oil and gas leasing and permitting practices.
Sec. 217. Management of Federal oil and gas leasing programs.
Sec. 218. Consultation regarding oil and gas leasing on public land.
Sec. 219. Pilot project to improve Federal permit coordination.
Sec. 220. Deadline for consideration of applications for permits.
TITLE III--ENERGY INFRASTRUCTURE
Sec. 301. Exportation and importation of natural gas.
Sec. 302. Exportation and importation of natural gas for offshore
facilities.
Sec. 303. Natural gas pipeline infrastructure.
Sec. 304. Natural gas storage facilities.
Sec. 305. Backup fuel capability study.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
SEC. 101. PUBLIC EDUCATION AND CONSERVATION INITIATIVE.
(a) In General.--The Secretary of Energy shall carry out a
comprehensive national program, including advertising and media
awareness, to educate consumers and other persons with respect to--
(1) the need to reduce consumption of electricity and
natural gas during the 4-year period beginning on the date of
enactment of this Act;
(2) the costs and benefits of reducing consumption of
electricity and natural gas;
(3) methods for reducing consumption of electricity and
natural gas, including the significant benefits of maintaining
and repairing heating and cooling ducts and equipment,
weatherization technologies, and energy smart purchases;
(4) the importance of tire maintenance to conserving
gasoline;
(5) the relationship between gasoline prices and natural
gas prices; and
(6) the importance of low energy costs to preserving and
keeping manufacturing jobs in the United States and maintaining
economic growth.
(b) Inclusion.--The program described in subsection (a) shall
include--
(1) information regarding the need to reduce consumption of
electricity and natural gas during peak use periods;
(2) information regarding practicable, actionable measures
consumers can carry out to reduce the demand for natural gas,
oil, and electricity.
(3) if practicable, 1 or more examples of public education
described in the State of California Executive Order D-18-01;
and
(4) if practicable, collaboration between Federal, State,
and local government officials and local utilities.
(c) Report.--Not later than July 1, 2009, the Secretary of Energy
shall submit to Congress a report describing the effectiveness of the
program under this section.
(d) Termination of Authority.--The program carried out under this
section shall terminate on December 31, 2010.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $90,000,000 for each of fiscal
years 2007 through 2010.
SEC. 102. REDUCING RESIDENTIAL DEMAND; APPLIANCE AND EQUIPMENT
EFFICIENCY STANDARDS.
(a) Energy Conservation Standards for Additional Products.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(A) in paragraph (30)(S)--
(i) by inserting ``(i)'' after ``(S)''; and
(ii) by adding at the end the following:
``(ii) The term `medium base fluorescent lamp' does
not include--
``(I) any lamp specifically designed to be
used for special purpose applications and that
is unlikely to be used in general purpose
applications such as those described in
subparagraph (D); or
``(II) any lamp not described in
subparagraph (D) that is excluded by the
Secretary, by rule, because the lamp is
designed for special applications and is
unlikely to be used in general purpose
applications.''; and
(B) by adding at the end the following:
``(32) The term `battery charger' means a device that charges
batteries for consumer products, including a battery charger embedded
in another consumer product.
``(33) The term `external power supply' means an external power
supply circuit that is used to convert household electric current into
either DC current or lower-voltage alternating current to operate a
consumer product.
``(34) The term `illuminated exit sign' means a sign that--
``(A) is designed to be permanently fixed in place to
identify an exit; and
``(B) consists of an electrically powered integral light
source that--
``(i) illuminates the legend `EXIT' and any
directional indicators; and
``(ii) provides contrast between the legend, any
directional indicators, and the background.
``(35)(A) The term `distribution transformer' means a transformer
that--
``(i) has an input voltage of 34.5 kilovolts or less;
``(ii) has an output voltage of 600 volts or less; and
``(iii) is rated for operation at a frequency of 60 Hertz.
``(B) The term `distribution transformer' does not include--
``(i) a transformer with multiple voltage taps, with the
highest voltage tap equaling at least 20 percent more than the
lowest voltage tap;
``(ii) a transformer (such as those commonly known as a
drive transformer, rectifier transformer, auto-transformer,
uninterruptible power system transformer, impedance
transformer, regulating transformer, sealed or nonventilating
transformer, machine tool transformer, welding transformer,
grounding transformer, or testing transformer) that is designed
to be used in a special purpose application and is unlikely to
be used in a general purpose application; or
``(iii) any transformer not listed in clause (ii) that is
excluded by the Secretary by rule because--
``(I) the transformer is designed for a special
application;
``(II) the transformer is unlikely to be used in a
general purpose application; and
``(III) the application of standards to the
transformer would not result in significant energy
savings.
``(36) The term `low-voltage dry-type distribution transformer'
means a distribution transformer that--
``(A) has an input voltage of 600 volts or less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(37) The term `standby mode' means the lowest power consumption
mode that--
``(A) cannot be switched off or influenced by the user; and
``(B) may persist for an indefinite time when an appliance
is connected to the main electricity supply and used in
accordance with the instructions of the manufacturer, as
defined on an individual product basis by the Secretary.
``(38) The term `torchiere' means a portable electric lamp with a
reflector bowl that directs light upward so as to give indirect
illumination.
``(39) The term `traffic signal module' means a standard 8-inch
(200mm) or 12-inch (300mm) traffic signal indication, consisting of a
light source, a lens, and all other parts necessary for operation, that
communicates movement messages to drivers through red, amber, and green
colors.
``(40) The term `pedestrian module' means a light signal used to
convey movement information to pedestrians.
``(41) The term `transformer' means a device consisting of 2 or
more coils of insulated wire that transfers alternating current by
electromagnetic induction from 1 coil to another to change the original
voltage or current value.
``(42) The term `unit heater' means a self-contained fan-type
heater designed to be installed within the heated space, except that
the term does not include a warm-air furnace.
``(43) The term `ceiling fan' means a nonportable device that is
suspended from a ceiling for circulating air via the rotation of fan
blades.
``(44) The term `ceiling fan light kit' means equipment designed to
provide light from a ceiling fan that can be--
``(A) integral, such that the equipment is attached to the
ceiling fan prior to the time of retail sale; or
``(B) attachable, such that at the time of retail sale the
equipment is not physically attached to the ceiling fan, but
may be included inside the ceiling fan package at the time of
sale or sold separately for subsequent attachment to the fan.
``(45) The term `dehumidifier' means a self-contained, electrically
operated, and mechanically encased assembly consisting of--
``(A) a refrigerated surface (evaporator) that condenses
moisture from the atmosphere;
``(B) a refrigerating system, including an electric motor;
``(C) an air-circulating fan; and
``(D) means for collecting or disposing of the condensate.
``(46)(A) The term `commercial prerinse spray valve' means a
handheld device designed and marketed for use with commercial
dishwashing and ware washing equipment that sprays water on dishes,
flatware, and other food service items for the purpose of removing food
residue before cleaning the items.
``(B) The Secretary may modify the definition of `commercial
prerinse spray valve' by rule--
``(i) to include products--
``(I) that are extensively used in conjunction with
commercial dishwashing and ware washing equipment;
``(II) the application of standards to which would
result in significant energy savings; and
``(III) the application of standards to which would
meet the criteria specified in subsection (o)(4); and
``(ii) to exclude products--
``(I) that are used for special food service
applications;
``(II) that are unlikely to be widely used in
conjunction with commercial dishwashing and ware
washing equipment; and
``(III) the application of standards to which would
not result in significant energy savings.
``(47) The term `digital television adapter' means a commercially-
available electronic product the sole purpose of which is to convert
digital video broadcast signals to analog National Television Standards
Committee video signals for use by a television or video cassette
recorder.
``(48)(A) The term `high intensity discharge lamp' means an
electric-discharge lamp in which--
``(i) the light-producing arc is stabilized by bulb wall
temperature; and
``(ii) the arc tube has a bulb wall loading in excess of 3
watts per square centimeter.
``(B) The term `high intensity discharge lamp' includes mercury
vapor, metal halide, and high-pressure sodium lamps.
``(49)(A) The term `mercury vapor lamp' means a high-intensity
discharge lamp in which the major portion of the light is produced by
radiation from mercury operating at a partial pressure in excess of
100,000 Pascals (approximately 1 asynchronous transfer mode).
``(B) The term `mercury vapor lamp' includes clear, phosphor-
coated, and self-ballasted lamps.
``(50) The term `cold climate State' means a State that experiences
not less than 5,000 long-term population-weighted average heating
degree days, as determined by the National Oceanic and Atmospheric
Administration.''.
(2) Test procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(A) in subsection (b), by adding at the end the
following:
``(9) Test procedures for illuminated exit signs shall be based on
the test method used under Version 2.0 of the Energy Star program of
the Environmental Protection Agency for illuminated exit signs.
``(10)(A) Test procedures for distribution transformers and low
voltage dry-type distribution transformers shall be based on the
`Standard Test Method for Measuring the Energy Consumption of
Distribution Transformers' prescribed by the National Electrical
Manufacturers Association (NEMA TP 2-1998).
``(B) The Secretary may review and revise those test procedures.
``(C) For purposes of section 346(a), those test procedures shall
be considered to be testing requirements prescribed by the Secretary
under section 346(a)(1) for distribution transformers for which the
Secretary makes a determination that energy conservation standards
would be technologically feasible and economically justified, and would
result in significant energy savings.
``(11) Test procedures for traffic signal modules and pedestrian
modules shall be based on the test method used under the Energy Star
program of the Environmental Protection Agency for traffic signal
modules, as in effect on the date of enactment of this paragraph.
``(12)(A) Test procedures for medium base compact fluorescent lamps
shall be based on the test methods used under the August 9, 2001,
version of the Energy Star program of the Environmental Protection
Agency and Department of Energy for compact fluorescent lamps.
``(B)(i) Except as provided in clause (ii), covered products shall
meet all test requirements for regulated parameters established under
section 325(bb).
``(ii) Covered products may be marketed prior to completion of lamp
life and lumen maintenance at 40 percent of rated life testing provided
manufacturers document engineering predictions and analysis that
support expected attainment of lumen maintenance at 40 percent rated
life and lamp life time.
``(13) Air movement test procedures for ceiling fans shall be based
on the test procedure contained in the Energy Star Program Requirements
for Residential Ceiling Fans, version 2.0, developed by the
Environmental Protection Agency, unless, pursuant to this section, the
Secretary promulgates an alternative test procedure.
``(14) Test procedures for dehumidifiers shall be based on the test
criteria used under the Energy Star Program Requirements for
Dehumidifiers developed by the Environmental Protection Agency, as in
effect on the date of enactment of this paragraph unless revised by the
Secretary pursuant to this section.
``(15) The test procedure for measuring flow rate for commercial
prerinse spray valves shall be based on American Society for Testing
and Materials Standard F2324, entitled `Standard Test Method for
Prerinse Spray Valves.'
``(16) The test procedure for digital television adapters shall be
based on the International Electrotechnical Commissions Standard
62087:2002(E), entitled `Methods of Measurement for the Power
Consumption of Audio, Video, and Related Equipment'.
``(17) The test procedure for refrigerated bottled or canned
beverage vending machines shall be based on American Society of
Heating, Refrigerating and Air-Conditioning Engineers Standard 32.1-
2004, entitled `Methods of Testing for Rating Vending Machines for
Bottled, Canned or Other Sealed Beverages'.''; and
(B) by adding at the end the following:
``(f)(1) Additional Testing Requirements.--Not later than 2 years
after the date of enactment of this subsection, the Secretary shall
prescribe testing requirements for any product for which--
``(A) a standard is provided under the Natural Gas Price
Reduction Act of 2005; and
``(B) there was no testing requirement before the date of
enactment of that Act.
``(2) The testing requirements under paragraph (1) shall be based
on test procedures used in industry to the maximum extent practicable
and reasonable.''.
(3) New Labeling.--Section 324(a)(2) of the Energy Policy
Act and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by
adding at the end the following:
``(F)(i) Not later than 90 days after the date of enactment of this
subparagraph, the Commission shall initiate a rulemaking to consider--
``(I) the effectiveness of the consumer products labeling
program in existence on the date of enactment of this
subparagraph in assisting consumers in making purchasing
decisions and improving energy efficiency; and
``(II) changes to the labeling rules that would improve the
effectiveness of consumer product labels.
``(ii) The rulemaking shall be completed not later than 2 years
after the date of enactment of this subparagraph.''.
(4) New standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended--
(A) in subsection (o), by adding at the end the
following:
``(5)(A) Notwithstanding any other provision in this section, the
Secretary may set 2 standards for space heating and air conditioning
equipment by dividing the United States into 2 climate zones to achieve
the maximum level of energy savings that are technically feasible and
economically justified.
``(B) The climate zone boundaries described in subparagraph (A)--
``(i) shall follow State borders; and
``(ii) shall include only contiguous States.
``(C) In determining whether to set 2 standards as described in
subparagraph (A), the Secretary shall consider all factors described in
paragraphs (1) through (4).
``(D) If the Secretary sets 2 standards as described in
subparagraph (A), it shall be illegal to transport noncomplying
products into a State for retail sale or installation in that State.
``(6) The Secretary may set more than 1 efficiency standard for
products that serve more than 1 major function by setting 1 standard
for each major function.''; and
(B) by adding at the end the following:
``(u) Battery Charger and External Power Supply Electric Energy
Consumption.--(1)(A)(i) Not later than 18 months after the date of
enactment of this subsection, the Secretary shall prescribe by notice
and comment, definitions and test procedures for the power use of
battery chargers and external power supplies.
``(ii) In establishing the test procedures, the Secretary shall
consider, among other factors, definitions and test procedures used for
measuring energy consumption in standby mode and other modes and assess
the current and projected future market for battery chargers and
external power supplies.
``(iii) The assessment shall include estimates of the significance
of potential energy savings from technical improvements to the products
and suggested product classes for standards.
``(iv) Not later than the end of the time period referred to in
clause (i), the Secretary shall hold a scoping workshop to discuss and
receive comments on plans for developing energy conservation standards
for energy use for these products.
``(B)(i) Not later than 3 years after the date of enactment of this
subsection, the Secretary shall promulgate a final rule that determines
whether energy conservation standards shall be issued for battery
chargers and external power supplies or classes thereof.
``(ii) For each product class, any such standards shall be set at
the lowest level of energy use that--
``(I) meets the criteria and procedures of subsections (o),
(p), (q), (r), (s), and (t); and
``(II) will result in significant overall annual energy
savings, considering both standby mode and other operating
modes.
``(2) In determining pursuant to section 323 whether test
procedures and energy conservation standards pursuant to this section
should be revised, the Secretary shall consider, for covered products
that are major sources of standby mode energy consumption, whether to
incorporate standby mode into such test procedures and energy
conservation standards, taking into account, among other relevant
factors, standby mode power consumption compared to overall product
energy consumption.
``(3) The Secretary shall not propose a standard under this section
unless the Secretary has issued applicable test procedures for each
product pursuant to section 323.
``(4) Any standard issued under this subsection shall be applicable
to products manufactured or imported on or after the date that is 3
years after the date of issuance.
``(5) The Secretary and the Administrator shall collaborate and
develop programs, including Energy Star Programs and other voluntary
industry agreements or codes of conduct, that are designed to reduce
standby mode energy use.
``(v) Vending Machines.--(1) Not later than 36 months after the
date of enactment of this subsection, the Secretary shall prescribe, by
rule, energy conservation standards for refrigerated bottled or canned
beverage vending machines.
``(2) In establishing standards under this subsection, the
Secretary shall use the criteria and procedures described in
subsections (o) and (p).
``(3) Any standard prescribed under this subsection shall apply to
products manufactured on or after the date that is 3 years after the
date of publication of a final rule establishing the standard.
``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured
on or after January 1, 2006, shall meet the Version 2.0 Energy Star
Program performance requirements for illuminated exit signs prescribed
by the Environmental Protection Agency.
``(x) Torchieres.--Torchieres manufactured on or after January 1,
2006--
``(1) shall consume not more than 190 watts of power; and
``(2) shall not be capable of operating with lamps that
total more than 190 watts.
``(y) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of low voltage dry-type distribution transformers
manufactured on or after January 1, 2006, shall be the Class I
Efficiency Levels for distribution transformers specified in Table 4-2
of the `Guide for Determining Energy Efficiency for Distribution
Transformers' published by the National Electrical Manufacturers
Association (NEMA TP-1-2002).
``(z) Traffic Signal Modules.--(1) Traffic signal modules
manufactured on or after January 1, 2006, shall--
``(A) meet the performance requirements used under the
Energy Star program of the Environmental Protection Agency for
traffic signals, as in effect on the date of enactment of this
subsection; and
``(B) be installed with compatible, electrically connected
signal control interface devices and conflict monitoring
systems.
``(2) Pedestrian modules manufactured on or after January 1, 2006,
shall meet the performance requirements adopted by the California
Energy Commission on December 15, 2004.
``(aa) Unit Heaters.--Unit heaters manufactured on or after the
date that is 3 years after the date of enactment of this subsection
shall be equipped with an intermittent ignition device and shall have
either power venting or an automatic flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--(1) Bare lamp and
covered lamp (no reflector) medium base compact fluorescent lamps
manufactured on or after January 1, 2006, shall meet the following
requirements prescribed by the August 9, 2001, version of the Energy
Star Program Requirements for Compact Fluorescent Lamps, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued by the
Environmental Protection Agency and Department of Energy:
``(A) Minimum initial efficacy.
``(B) Lumen maintenance at 1000 hours.
``(C) Lumen maintenance at 40 percent of rated life.
``(D) Rapid cycle stress test.
``(E) Lamp life.
``(2) The Secretary may, by rule, establish requirements for--
``(A) color quality (CRI);
``(B) power factor;
``(C) operating frequency; and
``(D) maximum allowable start time based on the
requirements prescribed by the August 9, 2001, version of the
Energy Star Program Requirements for Compact Fluorescent Lamps.
``(3) The Secretary may, by rule, revise the requirements of this
subsection or establish other requirements considering energy savings,
cost effectiveness, and consumer satisfaction.
``(cc) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All ceiling
fans manufactured on or after January 1, 2007, shall have the following
features:
``(i) Lighting controls separate from fan speed controls.
``(ii) Adjustable speed controls (either more than 1 speed
or variable speed).
``(iii) The capability of reversible fan action, except for
fans sold for industrial applications, outdoor applications,
and where safety standards would be violated by the use of the
reversible mode.
``(B) The Secretary may promulgate regulations to define in greater
detail the exceptions provided under subparagraph (A)(iii) but may not
substantively expand the exceptions.
``(2) Ceiling fan light kits manufactured on or after January 1,
2007, shall--
``(A) meet the Energy Star Program Requirements for
Residential Light Fixtures, version 3.1, issued by the
Environmental Protection Agency, and be packaged with lamps to
fill all sockets;
``(B) be packaged with screw-based compact fluorescent
lamps to fill all sockets and meet the Energy Star Program
Requirements for Compact Fluorescent Lamps, version 3.0, issued
by the Department of Energy; or
``(C) use and be packaged with light sources other than
compact fluorescent lamps that meet the minimum efficacy
requirements, as measured in lumens per watt, of the Energy
Star Program Requirements for Compact Fluorescent Lamps,
version 3.0, issued by the Department of Energy.
``(3)(A) Notwithstanding any provision of this Act, if the
requirements of subsections (o) and (p) are met, the Secretary may
consider and prescribe energy efficiency or energy use standards for
electricity used by ceiling fans to circulate air in a room.
``(B) If the Secretary sets the standards, the Secretary shall
consider--
``(i) exempting or setting different standards for certain
product classes for which the primary standards are not
technically feasible or economically justified; and
``(ii) establishing separate exempted product classes for
highly decorative fans for which air movement performance is a
secondary design feature.
``(C) Any air movement standard prescribed under this subsection
shall apply to products manufactured on or after the date that is 3
years after the date of publication of a final rule establishing the
standard.
``(dd) Dehumidifiers.--(1) Dehumidifiers manufactured on or after
October 1, 2007, shall have an Energy Factor that meets or exceeds the
following values:
``Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
4 25.......................................... 1.00
> 25 - $35.................................... 1.20
> 35 - $54.................................... 1.30
> 54 - < 75................................... 1.50
4 75.......................................... 2.25.
``(2)(A) Not later than October 1, 2009, the Secretary shall
publish a final rule in accordance with subsections (o) and (p), to
determine whether the standards established under paragraph (1) should
be amended.
``(B) The final rule shall contain any amendment by the Secretary
and shall provide that the amendment shall apply to products
manufactured on or after October 1, 2012.
``(C) If the Secretary does not publish an amendment that takes
effect by October 1, [2012], dehumidifiers manufactured on or after
October 1, [2012], shall have an Energy Factor that meets or exceeds
the following values:
``Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
4 25.......................................... 1.20
> 25 - $35.................................... 1.30
> 35 - $45.................................... 1.40
> 45 - $54.................................... 1.50
> 54 - < 75................................... 1.60
4 75.......................................... 2.5.
``(ee) Commercial Prerinse Spray Valves.--Commercial prerinse spray
valves manufactured on or after January 1, 2006, shall have a flow rate
less than or equal to 1.6 gallons per minute.
``(ff) Digital Television Adapters.--Digital television adapters
manufactured on or after January 1, 2007, shall use--
``(A) not more than 1 watt while in scan true bearing
standby-passive mode; and
``(B) not more than 8 watts while in scan true bearing on-
mode.
``(gg) High-intensity Discharge Lamps.--High-intensity discharge
lamp ballasts shall not be designed or marketed for operating a mercury
vapor lamp.
``(hh) Standards for Certain Furnaces.--(1) Notwithstanding
subsection (f) and except as provided in paragraphs (2) and (3), a
furnace (including a furnace designed solely for installation in a
mobile home) manufactured 3 or more years after the date of enactment
of this subsection shall have an annual fuel utilization efficiency
of--
``(A) for natural gas- and propane-fired equipment, not
less than 80 percent; and
``(B) for oil-fired equipment not less than 83 percent.
``(2)(A) Notwithstanding subsection (f) and except as provided in
paragraph (3)--
``(i) a boiler (other than a gas steam boiler) manufactured
3 or more years after the date of enactment of this subsection
shall have an annual fuel utilization efficiency of not less
than 84 percent; and
``(ii) a gas steam boiler manufactured 3 or more years
after the date of enactment of this subsection shall have an
annual fuel utilization efficiency of not less than 82 percent.
``(B)(i) Notwithstanding subsection (f), if, after the date of
enactment of this subsection, the Governor of a cold climate State
files with the Secretary a notice that the State has implemented a
requirement for an annual fuel utilization efficiency of not less than
90 percent for furnaces (other than boilers and furnaces designed
solely for installation in a mobile home or boiler), the annual fuel
utilization efficiency of a furnace sold in that State shall be not
less than 90 percent.
``(ii) If a State described in clause (i) fails to implement or
reasonably enforce (as determined by the Secretary) annual fuel
utilization efficiency in accordance with that clause, the annual fuel
use efficiency for furnaces (other than boilers and furnaces designed
solely for installation in a mobile home or boiler) in that State shall
be the fuel utilization efficiency established under paragraph (1).
``(3)(i) Not later than 5 years after the date on which a standard
for a product under this subsection takes effect, the Secretary shall
promulgate a final rule to determine whether that standard should be
amended.
``(ii) If the Secretary determines that a standard under clause (i)
should be amended--
``(I) the final rule promulgated pursuant to clause (i)
shall contain the new standard; and
``(II) the new standard shall apply to any product
manufactured after the date that is 5 years after the date on
which the final rule is promulgated.''.
``(ii) Application Date.--Section 327 applies--
``(1) to products for which standards are to be established
under subsections (l), (u), and (v) beginning on the date on
which a final rule is promulgated by the Secretary of Energy,
except that any State or local standards prescribed or enacted
for any such product prior to the date on which the final rule
is issued shall not be preempted until the standard established
under subsection (l), (u), or (v) for that product takes
effect; and
``(2) to products for which standards are established under
subsections (w) through (ff) on the date of enactment of those
subsections, except that any State or local standards
prescribed or enacted prior to the date of enactment of those
subsections shall not be preempted until the standards
established under subsections (w) through (ff) take effect.''.
(5) Residential furnace fans.--Section 325(f)(3) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is
amended by adding at the end the following:
``(D) Notwithstanding any provision of this Act, the Secretary may
consider, and prescribe, if the requirements of subsection (o) are met,
energy efficiency or energy use standards for electricity used for
purposes of circulating air through duct work.''.
(6) General rule of preemption.--Section 327(c) of the
Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is
amended--
(A) in paragraph (5), by striking ``or'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following:
``(7) is a regulation concerning standards for commercial
prerinse spray valves adopted by the California Energy
Commission before January 1, 2005, or is an amendment to such a
regulation developed to align California regulations with
changes in American Society for Testing and Materials Standard
F2324.''.
(b) Energy Labeling.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) is amended by adding at the end
the following:
``(5)(A) The Secretary or the Commission, as appropriate, may, for
covered products referred to in subsections (u) through (ff) of section
325, prescribe, by rule, pursuant to this section, labeling
requirements for the products after a test procedure has been set
pursuant to section 323.
``(B) In the case of products to which TP-1 standards under section
325(y) apply, labeling requirements shall be based on the `Standard for
the Labeling of Distribution Transformer Efficiency' prescribed by the
National Electrical Manufacturers Association (NEMA TP-3) as in effect
on the date of enactment of this paragraph.
``(C) In the case of dehumidifiers covered under section 325(dd),
the Commission shall not require an Energy Guide label.
``(6)(A) Not later than July 1, 2006, the Commission shall
prescribe by rule, pursuant to this section, labeling requirements for
the electricity used by ceiling fans to circulate air in a room.
``(B) The requirements shall be based on the test procedure and
labeling requirements contained in the Energy Star Program Requirements
for Residential Ceiling Fans, version 2.0, issued by the Environmental
Protection Agency, except that third party testing and other non-
labeling requirements shall not be promulgated unless the Commission
determines the requirements are necessary to achieve compliance.
``(C) The rule shall apply to products manufactured after the later
of--
``(i) January 1, 2007; or
``(ii) the date that is 60 days after the final rule is
prescribed.''.
(c) Commercial Package Air Conditioning and Heating Equipment.--
(1) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (D)
through (G) as subparagraphs (E) through (H),
respectively; and
(ii) by inserting after subparagraph (C)
the following:
``(D) Very large commercial package air
conditioning and heating equipment.'';
(B) in paragraph (2)(B), by striking ``small and
large'';
(C) by striking paragraphs (8) and (9) and
inserting the following:
``(8)(A) The term `commercial package air conditioning and
heating equipment' means air-cooled, water-cooled,
evaporatively-cooled, or water source (not including ground
water source) electrically operated, unitary central air
conditioners and central air conditioning heat pumps for
commercial application.
``(B) The term `small commercial package air conditioning
and heating equipment' means commercial package air
conditioning and heating equipment that is rated below 135,000
Btu per hour (cooling capacity).
``(C) The term `large commercial package air conditioning
and heating equipment' means commercial package air
conditioning and heating equipment that is rated at or above
135,000 Btu per hour and below 240,000 Btu per hour (cooling
capacity).
``(D) The term `very large commercial package air
conditioning and heating equipment' means commercial package
air conditioning and heating equipment that is rated at or
above 240,000 Btu per hour and below 760,000 Btu per hour
(cooling capacity).'';
(D) by redesignating paragraphs (10) through (18)
as paragraphs (9) through (17), respectively; and
(E) in paragraph (10) (as redesignated by
subparagraph (D)), by inserting ``, except for gas unit
heaters and gas duct furnaces'' after ``furnaces''.
(2) Standards.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(A) in the subsection heading, by striking ``Small
and Large'' and inserting ``Small, Large, and Very
Large'';
(B) in paragraph (1), by inserting ``but before
January 1, 2010,'' after ``January 1, 1994,'';
(C) in paragraph (2), by inserting ``but before
January 1, 2010,'' after ``January 1, 1995,'';
(D) in paragraph (4), by inserting ``, except for a
gas unit heater or gas duct furnace,'' after
``boiler'';
(E) in paragraph (6)--
(i) in subparagraph (A)--
(I) by inserting ``(i)'' after
``(A)'';
(II) by striking ``the date of
enactment of the Energy Policy Act of
1992'' and inserting ``January 1,
2010'';
(III) by inserting after ``large
commercial package air conditioning and
heating equipment'' the following:
``and very large commercial package air
conditioning and heating equipment, or
if ASHRAE/IES Standard 90.1, as in
effect on October 24, 1992, is amended
with respect to any''; and
(IV) by adding at the end the
following:
``(ii) If ASHRAE/IES Standard 90.1 is not amended with respect to
small commercial package air conditioning and heating equipment, large
commercial package air conditioning and heating equipment, and very
large commercial package air conditioning and heating equipment during
the 5-year period beginning on the effective date of a standard, the
Secretary may initiate a rulemaking to determine whether a more
stringent standard would result in significant additional conservation
of energy and is technologically feasible and economically justified.
``(iii) This subparagraph does not apply to gas-fired warm-air
furnaces, gas-fired package boilers, storage water heaters, gas unit
heaters, or gas duct furnaces manufactured 5 or more years after the
date of enactment of the Natural Gas Price Reduction Act of 2005.'';
and
(ii) in subparagraph (C)(ii), by inserting
``and very large commercial package air
conditioning and heating equipment'' after
``large commercial package air conditioning and
heating equipment''; and
(F) by adding at the end the following:
``(7) Each small commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 65,000 Btu per hour
(cooling capacity) and less than 135,000 Btu per hour (cooling
capacity) shall be--
``(i) 11.2 for equipment with no heating or
electric resistance heating; and
``(ii) 11.0 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 65,000 Btu per
hour (cooling capacity) and less than 135,000 Btu per hour
(cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or
electric resistance heating; and
``(ii) 10.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 65,000 Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be 3.3 (at a high
temperature rating of 47 degrees F db).
``(8) Each large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 135,000 Btu per hour
(cooling capacity) and less than 240,000 Btu per hour (cooling
capacity) shall be--
``(i) 11.0 for equipment with no heating or
electric resistance heating; and
``(ii) 10.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 135,000 Btu per
hour (cooling capacity) and less than 240,000 Btu per hour
(cooling capacity) shall be--
``(i) 10.6 for equipment with no heating or
electric resistance heating; and
``(ii) 10.4 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 135,000 Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
temperature rating of 47 degrees F db).
``(9) Each very large commercial package air conditioning and
heating equipment manufactured on or after January 1, 2010, shall meet
the following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 240,000 Btu per hour
(cooling capacity) and less than 760,000 Btu per hour (cooling
capacity) shall be--
``(i) 10.0 for equipment with no heating or
electric resistance heating; and
``(ii) 9.8 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 240,000 Btu per
hour (cooling capacity) and less than 760,000 Btu per hour
(cooling capacity) shall be--
``(i) 9.5 for equipment with no heating or electric
resistance heating; and
``(ii) 9.3 for equipment with all other heating
system types that are integrated into the equipment (at
a standard rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 240,000 Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
temperature rating of 47 degrees F db).
``(10) Notwithstanding paragraph (4) and except as provided in
paragraph (14), the minimum thermal efficiency at the maximum rated
capacity of a gas-fired warm-air furnace with the capacity of 225,000
Btu per hour or more manufactured 4 or more years after the date of
enactment of this paragraph shall be 79.5 percent.
``(11) Notwithstanding paragraph (4) and except as provided in
paragraph (14), the minimum thermal efficiency at the maximum rated
capacity of a gas-fired package boiler with the capacity of 300,000 Btu
per hour or more manufactured 4 or more years after the date of
enactment of this paragraph shall be 79 percent.
``(12) Notwithstanding paragraph (5) (excluding paragraph (5)(G)),
and except as provided in paragraph (14)--
``(A) the maximum standby loss (expressed as a percent per
hour) of a gas-fired storage water heater shall be 1.30
(expressed as a measurement of storage volume in gallons); and
``(B) the minimal thermal efficiency of a gas-fired storage
water heater shall be 82 percent.
``(13)(A) Not later than 5 years after the date on which a standard
for a product under paragraph (10), (11), or (12) takes effect, the
Secretary shall promulgate a final rule to determine whether the
standard for that product should be amended.
``(B) If the Secretary determines that a standard should be amended
under subparagraph (A)--
``(i) the final rule promulgated pursuant to subparagraph
(A) shall contain the new standard; and
``(ii) the new standard shall apply to any product
manufactured 4 or more years after the date on which the final
rule is promulgated.''.
(3) Test procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended in subsections
(a)(4) and (d)(1), by inserting ``very large commercial package
air conditioning and heating equipment,'' after ``large
commercial package air conditioning and heating equipment,''
each place it appears.
(4) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended in the first
and second sentences, by inserting ``very large commercial
package air conditioning and heating equipment,'' after ``large
commercial package air conditioning and heating equipment,''
each place it appears.
(5) Administration, penalties, enforcement, and
preemption.--Section 345 of the Energy Policy and Conservation
Act (42 U.S.C. 6316) is amended by adding at the end the
following:
``(d)(1) Except as provided in paragraphs (2) and (3), section 327
shall apply with respect to the equipment specified in section
340(1)(D) to the same extent and in the same manner as section 327
applies under part A on the date of enactment of this subsection.
``(2) Any State or local standard prescribed or enacted prior to
the date of enactment of this subsection shall not be preempted until
the standards established under section 342(a)(9) take effect on
January 1, 2010.
``(3) If the California Energy Commission adopts, not later than
March 31, 2005, a regulation concerning the energy efficiency or energy
use of the equipment specified in section 340(1)(D), the regulation
shall be effective until, and shall no longer be effective after, the
standards established under section 342(a)(9) take effect on January 1,
2010.''.
(6) Technical amendment.--Section 345(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended
in the first sentence by striking ``part B'' and inserting
``part A''.
(d) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--
(1) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) (as amended by subsection
(c)(1)) is amended--
(A) in paragraph (1)--
(i) by redesignating subparagraph (H) as
subparagraph (I); and
(ii) by inserting after subparagraph (G)
the following:
``(H) Commercial refrigerators, freezers, and refrigerator-
freezers.''; and
(B) by adding at the end the following:
``(18)(A) The term `commercial refrigerator, freezer, and
refrigerator-freezer' means refrigeration equipment that--
``(i) is not a consumer product (as defined in
section 321);
``(ii) operates at a chilled, frozen, combination
chilled and frozen, or variable temperature;
``(iii) displays or stores merchandise and other
perishable materials horizontally, semivertically, or
vertically;
``(iv) has transparent or solid doors, sliding or
hinged doors, a combination of hinged, sliding,
transparent, or solid doors, or no doors;
``(v) is designed for pull-down temperature
applications or holding temperature applications; and
``(vi) is connected to a self-contained condensing
unit or to a remote condensing unit.
``(B) The term `holding temperature application' means a
use of commercial refrigeration equipment other than a pull-
down temperature application, except a blast chiller or
freezer.
``(C) The term `integrated average temperature' means the
average temperature of all test package measurements taken
during the test.
``(D) The term `pull-down temperature application' means a
commercial refrigerator with doors that, when fully loaded with
12 ounce beverage cans at 90 degrees F, can cool those
beverages to an average stable temperature of 38 degrees F in
12 hours or less.
``(E) The term `remote condensing unit' means a factory-
made assembly of refrigerating components designed to compress
and liquefy a specific refrigerant that is remotely located
from the refrigerated equipment and consists of 1 or more
refrigerant compressors, refrigerant condensers, condenser fans
and motors, and factory supplied accessories.
``(F) The term `self-contained condensing unit' means a
factory-made assembly of refrigerating components designed to
compress and liquefy a specific refrigerant that is an integral
part of the refrigerated equipment and consists of 1 or more
refrigerant compressors, refrigerant condensers, condenser fans
and motors, and factory supplied accessories.''.
(2) Standards.--
(A) In general.--Section 342 of the Energy Policy
and Conservation Act (42 U.S.C. 6313) is amended by
adding at the end the following:
``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
``(A) The term `AV' means the adjusted volume
(ft<SUP>3</SUP>) (defined as 1.63 x frozen temperature
compartment volume (ft<SUP>3</SUP>) + chilled temperature
compartment volume (ft<SUP>3</SUP>)) with compartment volumes
measured in accordance with the Association of Home Appliance
Manufacturers Standard HRF1-1979.
``(B) The term `V' means the chilled or frozen compartment
volume (ft<SUP>3</SUP>) (as defined in the Association of Home
Appliance Manufacturers Standard HRF1-1979).
``(C) Other terms have the meanings established by the
Secretary, based on industry-accepted definitions and practice.
``(2) Each commercial refrigerator, freezer, and refrigerator-
freezer with a self-contained condensing unit designed for holding
temperature applications manufactured on or after January 1, 2010,
shall meet the following standard levels in kilowatt hours per day:
``Refrigerators with solid doors 0.10 V + 2.04
Refrigerators with transparent 0.12 V + 3.34
doors.
Freezers with solid doors....... 0.40 V + 1.38
Freezers with transparent doors. 0.75 V + 4.10
Refrigerators/freezers with 0.27 AV - 0.71 or 0.70
solid doors...the greater of.
``(3) Each commercial refrigerator with a self-contained condensing
unit designed for pull-down temperature applications manufactured on or
after January 1, 2010, shall meet the following standard levels in
kilowatt hours per day: Refrigerators with transparent doors 0.126 V +
3.51.''.
(B) Establishment of standards.--
(i) Specified types.--Not later than
January 1, 2009, the Secretary of Energy may
prescribe, by rule, standard levels for ice-
cream freezers, self-contained commercial
refrigerators, freezers, and refrigerator-
freezers without doors, and remote condensing
commercial refrigerators, freezers, and
refrigerator-freezers, with the standard levels
effective for equipment manufactured on or
after January 1, 2012.
(ii) Other types.--Not later than January
1, 2009, the Secretary may prescribe, by rule,
standard levels for other types of commercial
refrigerators, freezers, and refrigerator-
freezers not covered by clause (i) or section
342(c) of the Energy Policy and Conservation
Act (as added by subparagraph (A)), with the
standard levels effective for equipment
manufactured on or after January 1, 2012.
(C) Revisions to standards.--
(i) Initial revision of standards.--
(I) In general.--Not later than
January 1, 2013, the Secretary shall
publish a final rule to determine if
the standards established under section
342(c) of the Energy Policy and
Conservation Act (as added by
subparagraph (A)) should be amended.
(II) Application date.--The rule
shall provide that any amended
standards shall apply to products
manufactured on or after the date that
is 3 years after the final amended
standard is published unless the
Secretary determines, by rule, that 3
years is inadequate, in which case the
Secretary may establish an application
date for products manufactured not
later than 5 years after the final
amended standard is published.
(ii) Subsequent revision of standards.--
(I) In general.--Not later than 3
years after the amended final standard
referred to in subparagraph (A) takes
effect or after the Secretary publishes
a final rule determining that the
standard should not be amended, the
Secretary shall publish a final rule to
determine if the standards established
under section 342(c) of the Energy
Policy and Conservation Act (as added
by subparagraph (A)) should be amended.
(II) Application date.--The rule
shall provide that any amended
standards shall apply to products
manufactured on or after the date that
is 3 years after the final amended
standard is published unless the
Secretary determines, by rule, that 3
years is inadequate, in which case the
Secretary may establish an application
date for products manufactured not
later than 5 years after the final
amended standard is published.
(3) Test procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended--
(A) in subsection (a), by adding at the end the
following:
``(6)(A)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers, the test procedures shall be the test procedures
determined by the Secretary to be generally accepted industry testing
procedures or rating procedures developed or recognized by the ASHRAE
or by the American National Standards Institute.
``(ii) In the case of self-contained refrigerators, freezers, and
refrigerator-freezers to which standards are applicable under
subsection 342(c)(1), the initial test procedures shall be ASHRAE 117
that is in effect on January 1, 2005.
``(B) In the case of commercial refrigerators, freezers, and
refrigerators-freezers with doors covered by the standards adopted in
February 2002, by the California Energy Commission, the rating
temperatures shall be an integrated average temperature of 38 degrees F
(+/- 2 degrees F) for refrigerator compartments and 0 degrees F (+/- 2
degrees F) for freezer compartments.
``(C) The Secretary shall prescribe a rule, that meets the
requirements of paragraphs (2) and (3), to establish the appropriate
rating temperatures for the other products for which standards will be
established under subsection 342(c)(2).
``(D) In establishing the appropriate test temperatures under this
subparagraph, the Secretary shall follow the procedures and meet the
requirements specified in section 323(e).
``(E)(i) Not later than 180 days after the publication of a new
ASHRAE 117 test procedure, if the ASHRAE 117 test procedure for
commercial refrigerators, freezers, and refrigerator-freezers is
amended, the Secretary shall, by rule, amend the test procedure for the
product as necessary to be consistent with the amended ASHRAE 117 test
procedure unless the Secretary makes a determination, by rule, and
supported by clear and convincing evidence, that to do so would not
meet the requirements for test procedures described in paragraphs (2)
and (3).
``(ii) If the Secretary needs more than 180 days to review and
adopt the amended test procedure or rating procedure, the Secretary
shall publish a notice in the Federal Register stating the intent of
the Secretary to take up to an additional 1 year before the amended
test procedure or rating procedure would become effective.
``(F)(i) If another test procedure besides ASHRAE 117 is approved
by the American National Standards Institute, the Secretary shall, by
rule--
``(I) review the relative strengths and weaknesses of the
new test procedure relative to ASHRAE 117; and
``(II) based on that review, adopt 1 of those test
procedures for subsequent use in the standards program.
``(ii) If a new test procedure is adopted--
``(I) section 323(e) shall apply; and
``(II) subparagraph (B) shall apply to the adopted test
procedure.''; and
(B) in subsection (d)(1), by striking ``and unfired
hot water storage tanks,'' and inserting: ``unfired hot
water storage tanks, and commercial refrigerators,
freezers, and refrigerator-freezers,''.
(4) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended by striking
``and unfired hot water storage tanks'' each place it appears
and inserting ``unfired hot water storage tanks, and commercial
refrigerators, freezers, and refrigerator-freezers''.
(5) Administration, penalties, enforcement, and
preemption.--Section 345 of the Energy Policy and Conservation
Act (42 U.S.C. 6316) (as amended by subsection (c)(5)) is
amended by adding at the end the following:
``(e)(1)(A) The provisions of subsections (a), (b), and (d) of
section 326, subsections (m) through (s) of section 325, and sections
328 through 336 shall apply with respect to equipment specified in
section 340(1)(G) to the same extent and in the same manner as those
provisions apply under part A.
``(B) In applying those provisions to that equipment, paragraphs
(1), (2), (3), and (4) of subsection (a) shall apply.
``(2)(A)(i) The provisions of section 327 shall apply with respect
to the equipment specified in section 340(1)(G) that have standards
established under section 342(c)(2) to the same extent and in the same
manner as those provisions apply under part A on the date of enactment
of this subsection, except that any State or local standard prescribed
or enacted before the date of enactment of this subsection shall not be
preempted until the standards established under section 342(c) take
effect.
``(ii) In applying those provisions to that equipment, paragraphs
(1), (2), and (3) of subsection (a) shall apply.
``(B) Notwithstanding subparagraph (A), if the California Energy
Commission adopts, not later than March 31, 2005, a regulation
concerning the energy efficiency or energy use of the equipment
specified in section 340(1)(G) that have standards established under
section 342(c)(2), those standards shall be effective until, and shall
no longer be effective after, the standards established under section
342(c)(2) take effect on January 1, 2010.
``(3)(A) The provisions of section 327 shall apply with respect to
the equipment specified in 340(1)(G) that have standards established
under section 342(c)(3) to the same extent and in the same manner as
they apply under part A on the date of publication of the final rule by
the Secretary, except that any State or local standard prescribed or
enacted before the date of publication of the final rule by the
Secretary shall not be preempted until the standards take effect.
``(B) In applying those provisions for the purpose of that
equipment, paragraphs (1), (2), and (3) of subsection (a) shall apply.
``(4) If the Secretary does not issue a final rule for a specific
type of equipment specified in section 340(1)(G) within the time frame
specified in section 342(c)(3), the provisions of subsections (b) and
(c) of section 327 shall no longer apply to that specific type of
equipment beginning on the date that is 2 years after the scheduled
date for a final rule and until the Secretary publishes a final rule
covering the specific type of equipment, at which time those provisions
shall apply to the specific type of equipment.
``(5)(A) In the case of any commercial refrigerator, freezer, and
refrigerator-freezer to which standards are applicable under section
342(c)(2), the Secretary shall require manufacturers to certify,
through an independent testing or certification program nationally
recognized in the United States, that the commercial refrigerator,
freezer, and refrigerator-freezer meets the applicable standard.
``(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 such independent testing and
certification programs.
``(C) As part of certification, information on equipment energy use
and interior volume shall be made available to the Secretary.''.
SEC. 103. DEPLOYMENT FOR DISTRIBUTED GENERATION, SOLAR ENERGY
TECHNOLOGIES, AND BIOMASS.
(a) Distributed Power Systems.--
(1) Requirement.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy shall develop
and transmit to Congress a strategy for a comprehensive
research, development, demonstration, and commercial
application program to develop distributed power systems that
use non-intermittent electric power generation technologies
suitable for use in a distributed power system.
(2) Contents.--The strategy shall--
(A) identify the needs best met with such
distributed power systems and the technological
barriers to the use of the systems;
(B) provide for the development of methods to
design, test, integrate into systems, and operate the
distributed power systems;
(C) include, as appropriate, research, development,
demonstration, and commercial application on related
technologies needed for the adoption of the distributed
power systems, including energy storage devices and
environmental control technologies;
(D) include research, development, demonstration,
and commercial application of interconnection
technologies for communications and controls of
distributed generation architectures, particularly
technologies promoting real-time response to power
market information and physical conditions on the
electrical grid; and
(E) 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.
(b) Micro-Cogeneration Energy Technology.--The Secretary of Energy
shall make competitive, merit-based grants to consortia for the
development of micro-cogeneration energy technology that explore--
(1) the use of small-scale combined heat and power in
residential heating appliances; and
(2) the use of excess power to operate other appliances
within the residence and supply excess generated power to the
power grid.
(c) Solar Energy Technologies Demonstration Program.--
(1) In general.--The Secretary of Energy shall conduct a
program under which the Secretary makes grants to State energy
offices and other appropriate State entities, as determined by
the Secretary, to provide the Federal share of the cost of
demonstrating the use of advanced photovoltaic, solar water
heating, and hybrid solar lighting technologies to generate and
displace electricity.
(2) Federal share.--The Federal share of the cost of an
activity described in paragraph (7) shall be not more than 40
percent, as determined by the Secretary.
(3) Proposals.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
solicit from State energy offices and other appropriate
State entities, as determined by the Secretary,
proposals to receive grants under this subsection.
(B) Contents.--A proposal under this paragraph
shall contain provisions that--
(i) meet the cost-sharing requirement of
this subsection;
(ii) maximize the quantity of photovoltaic,
solar water heating, and hybrid solar lighting
technologies installed for each Federal dollar
expended under this subsection, including by
increasing the non-Federal share of the cost of
an activity under this subsection;
(iii) measure and verify the output of a
photovoltaic, solar water heating, or hybrid
solar lighting technology under this subsection
for a period of not less than 20 years after
the date on which the technology is installed;
and
(iv) for each building on which a
photovoltaic, solar water heating, or hybrid
solar lighting technology is installed under
this subsection, require that the building
receive an energy efficiency audit not earlier
than 180 days before the date on which the
technology is installed.
(4) Preference.--In making a grant under this subsection,
the Secretary shall give preference to a State energy office or
entity if making a grant to that office or entity--
(A) promotes the geographic diversity of
demonstration sites, as determined by the Secretary; or
(B) limits overhead costs under this subsection,
including the administrative costs to the Department of
Energy or a State.
(5) Amounts.--
(A) Distribution.--Of the amount of funds made
available to provide grants under this subsection for a
fiscal year, the Secretary shall use 75 percent of that
amount to distribute the grants described in paragraph
(1)--
(i) to State energy offices or entities
based on the ratio that--
(I) the percentage contribution of
the State of the energy office or
entity to the cost of an activity
described in paragraph (7); bears to
(II) the percentage contribution of
all States to the cost of an activity
described in paragraph (7); and
(ii) if a recipient of a grant under this
subsection is a commercial, industrial, or
residential recipient, proportionally to the
use of electricity by the recipient.
(B) Remainder of funds.--Of the amount of funds
made available to provide grants under this subsection
for a fiscal year, the Secretary shall use 25 percent
of that amount to distribute the grants described in
paragraph (1) to any State energy office or entity the
proposal of which the Secretary considers highly likely
to encourage widespread adoption of solar energy
technologies.
(C) Limitation.--The amount of a grant under this
subsection shall not exceed $5,000,000.
(6) Termination.--
(A) Individual grants.--If the Secretary determines
that the recipient of a grant under this subsection
fails to act in accordance with the approved proposal
of the recipient, the Secretary--
(i) shall take such action as is necessary
to obtain repayment of the Federal share of the
amount of the grant; and
(ii) shall not provide any further grants
to that recipient under this subsection.
(B) All grants.--Not later than 1 year after the
date on which the United States achieves a total
installed capacity of 10,000 megawatts (or the
equivalent of that capacity) under the program, the
Secretary shall not make any further grants under this
subsection.
(7) Use of funds.--A State energy office or other
appropriate entity may use a grant provided under paragraph (1)
to--
(A) demonstrate the commercial application of using
a concentrated solar power, advanced photovoltaic,
solar water heating, or hybrid solar lighting
technology to generate or displace not less than 10
kilowatts at a demonstration site;
(B) install a photovoltaic, solar water heating, or
hybrid solar lighting technology on a public, private,
commercial, industrial, or residential demonstration
site;
(C) monitor an installation described in paragraph
(2) to ensure the successful operation, and quantify
the results, of the technology; and
(D) increase public awareness of the use of
advanced photovoltaic, solar water heating, or hybrid
solar lighting technology.
(8) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection.
(d) Solar Lighting Development Program.--
(1) Definitions.--In this subsection:
(A) Development activity.--The term ``development
activity'' includes the development of a technology,
material, or manufacturing process required--
(i) to collect direct, nondiffuse sunlight;
(ii) to transmit or otherwise direct and
distribute sunlight into buildings through any
method (including through optical fibers);
(iii) to integrate sunlight with an
electric lighting system in a hybrid
configuration with collocated electric lamps;
(iv) to control the spatial, temporal, or
spectral quality of sunlight to improve energy
efficiency, worker productivity, or retail
sales; or
(v) to remotely monitor the performance of
a solar energy system through web-based
metering.
(B) For-profit participant.--The term ``for-profit
participant'' includes the following entities that
operate for profit:
(i) An organization that manufactures
original equipment for emerging components or
systems used in solar lighting.
(ii) A lighting designer.
(iii) An illumination or architectural
engineer.
(C) Solar lighting.--
(i) In general.--The term ``solar
lighting'' means a lighting system that
incorporates sunlight in accordance with
paragraph (2) and offers the flexibility,
convenience, reliability, and control available
in electric-only lighting.
(ii) Exclusions.--The term ``solar
lighting'' does not include an architecturally-
intrusive product in existence on the date of
enactment of this Act, including--
(I) a skylight;
(II) a lightwell;
(III) a light shelf; or
(IV) a roof monitor.
(2) Purpose.--The purpose of this subsection is to support
the development of advanced solar lighting systems that are--
(A) multifunctional;
(B) compatible with different electric lamps and
light fixtures used for direct, indirect, ambient,
task, or accent lighting;
(C) reconfigurable;
(D) easily added, removed, or modified as lighting
needs change;
(E) easily integrated with electric lights and
controllable to--
(i) ensure that disruptions in lighting
quality or quantity do not occur on cloudy days
or at night; and
(ii) provide dimming and on/off switching
capabilities;
(F) designed to eliminate architectural design and
maintenance problems that limit the conventional use of
daylighting in most buildings;
(G) more efficient than electric lighting systems
used in the same lighting applications; and
(H) more efficient and cost-efficient than solar
generation technologies used in buildings to convert
sunlight into electricity and reconvert the sunlight
back into electrically-generated light through electric
lamps.
(3) Development activities.--
(A) In general.--The Secretary shall conduct a
program under which the Secretary makes grants to
provide the Federal share of the cost of a development
activity under this subsection to solar lighting
technology developers, including--
(i) for-profit participants;
(ii) National Laboratories; and
(iii) educational institutions.
(B) Federal share.--The Federal share of the cost
of a development activity under this subsection shall
be not more than 50 percent, as determined by the
Secretary.
(C) Proposals.--
(i) In general.--To receive a grant under
this section, a solar lighting technology
developer shall submit to the Secretary an
application at the time, in the manner, and
containing any information that the Secretary
requires.
(ii) Preference.--In making a grant under
this subsection, the Secretary may give
preference to a development activity led by a
for-profit participant.
(4) National academy of sciences.--
(A) In general.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall
offer to enter into a contract with the National
Academy of Sciences to conduct a biannual review of
each development activity carried out during the
preceding year under this subsection.
(B) Inclusions.--The review under this paragraph
shall include, for each development activity--
(i) an assessment of--
(I) priorities;
(II) technical milestones; and
(III) if appropriate, plans for
technology transfer and any progress
made towards achieving the plans; and
(ii) a comparison of the merits of solar
lighting with other practicable uses of solar
energy technologies in a building to reduce the
use by the building of nonrenewable energy.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection--
(A) for fiscal year 2006, $10,000,000;
(B) for fiscal year 2007, $15,000,000;
(C) for fiscal year 2008, $20,000,000;
(D) for fiscal year 2009, $15,000,000; and
(E) for fiscal year 2010, $10,000,000.
(e) Distributed Energy.--
(1) In general.--The Secretary shall conduct program under
which the Secretary provides grants to eligible consortia (as
determined by the Secretary) to provide the Federal share of
the cost of developing microcogeneration energy technology.
(2) Federal share.--The Federal share of the cost of an
activity under this subsection shall be not greater than 40
percent.
(3) Use of funds.--
(A) In general.--A consortium may use funds
provided under this subsection for a project relating
to--
(i) the use of small-scale combined heat
and power in residential heating appliances; or
(ii) the use of excess power to--
(I) operate other appliances in a
residence; and
(II) supply power to a power grid.
(B) Inclusions.-- A project under subparagraph (A)
shall include the use of--
(i) a fuel cell;
(ii) a combined heat and power system;
(iii) a microturbine;
(iv) an advanced natural gas turbine;
(v) an advanced internal combustion engine
generator;
(vi) an energy storage device;
(vi) an interconnection standard, protocol,
or piece of equipment;
(vii) ancillary equipment for dispatch and
control; or
(ix) any other energy technologies, as
appropriate.
(4) Report.--Concurrent with the submission by the
President of the annual budget request for fiscal year 2007,
the Secretary shall submit to Congress a report describing--
(A) the goals of the Secretary relating to
microcogeneration energy technology projects under this
subsection, including cost and energy savings targets
for fiscal years 2007 through 2012;
(B) progress made during the preceding year toward
achieving the goals of the Secretary relating to
microcogeneration energy technology; and
(C) the results of each project carried out by an
eligible consortium under this subsection.
(f) Bioenergy Programs.--
(1) In general.--The Secretary shall conduct a program of
research, development, and demonstration of commercial
applications of cellulosic biomass, including--
(A) converting biomass to heat and electricity;
(B) converting biomass to liquid fuels;
(C) biobased products;
(D) the use of integrated biorefineries to produce
heat, electricity, liquid fuels, and biobased products;
(E) cross-cutting activities on feedstocks and
enzymes; and
(F) economic analysis of applications of cellulosic
biomass.
(2) Biofuels and biobased products.--In carrying out a
program relating to a biofuel or biobased product under
paragraph (1), the Secretary, in cooperation with the energy
industry, shall develop--
(A) advanced biochemical and thermochemical
conversion technologies to make high-value biobased
chemical feedstocks and products, to substitute for
petroleum-based feedstocks and products;
(B) biofuels that are price-competitive with
gasoline or diesel in--
(i) internal combustion engines; or
(ii) fuel cell-powered vehicles;
(C) biobased products from a variety of feedstocks,
including grains, cellulosic biomass, and agricultural
byproducts; and
(D) advanced biotechnology processes to make
biofuels and biobased products, with emphasis on
development of biorefinery technologies, including
enzyme-based processing technologies.
(3) Biomass integrated refinery demonstration.--
(A) In general.--The Secretary shall conduct a
program under which the Secretary provides grants to
advanced biorefineries to provide the Federal share of
the cost of demonstrating the commercial application of
integrated biorefineries.
(B) Limitations.--
(i) Quantity of grants.--The Secretary
shall provide grants under this paragraph to
not fewer than 5 advanced biorefineries.
(ii) Federal share.--The Federal share of
the cost of a demonstration under this
paragraph shall not exceed 40 percent.
(iii) Maximum amount.--The Secretary shall
provide not greater than $100,000,000 for a
biorefinery demonstration under this paragraph.
(C) Factors.--The Secretary shall select
biorefinery demonstrations under this subsection in a
manner that supports--
(i) the geographic diversity of the
demonstrations;
(ii) the demonstration of a wide variety of
cellulosic biomass feedstocks;
(iii) the commercial application of biomass
technologies for a variety of uses, including--
(I) liquid transportation fuels;
(II) high-value biobased chemicals;
(III) substitutes for petroleum-
based feedstocks and products; and
(IV) energy in the form of
electricity or useful heat; and
(iv) the demonstration of the collection
and treatment of a variety of biomass
feedstocks.
(D) Proposals.--
(i) In general.--To obtain a grant under
this subsection, not later than 180 days after
the date of enactment of this Act, an advanced
biorefinery shall submit to the Secretary a
proposal in the time and in the manner, and
containing any information, that the Secretary
requires.
(ii) Consideration.--In making a grant
under this subsection, the Secretary shall
select advanced biorefineries the proposals of
which--
(I) demonstrate that the project of
the biorefinery will operate profitably
without a direct Federal subsidy after
initial construction costs are paid;
and
(II) allow for easy replication of
the biorefinery, as determined by the
Secretary.
SEC. 104. HYDROGEN AND FUEL CELL INITIATIVE.
(a) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory Committee''
means the Hydrogen Technical and Fuel Cell Advisory Committee
established by subsection (e)(1).
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Fuel cell.--The term ``fuel cell'' means a device that
directly converts the chemical energy of a fuel and an oxidant
into electricity by an electrochemical process that take place
at separate electrodes in the device.
(4) Infrastructure.--The term ``infrastructure'' means any
equipment, system, or facility used to produce, distribute,
deliver, or store hydrogen.
(5) Light duty vehicle.--The term ``light duty vehicle''
means a car or truck classified by the Department of
Transportation as a Class I or IIA vehicle.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Plan.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress a
coordinated plan for carrying out--
(A) the programs described in this section; and
(B) any other program of the Department that is
directly related to fuel cells or hydrogen.
(2) Inclusions.--The plan shall include a description of--
(A) for the first 5 years beginning on the date of
enactment of this Act, an agenda for each program under
this section, including the agenda for each activity
under subsection (c)(1);
(B) each type of entity that will carry out an
activity under this section and the role each entity is
expected to play;
(C) any milestone that will be used to evaluate a
program carried out during the first 5 years beginning
on the date of enactment of this Act;
(D) the most significant technical and nontechnical
obstacles to achieving the goals described in
subsection (c)(2) and the means by which each program
under this section will address the obstacles; and
(E) any policy assumption that is implicit in the
plan, including any assumption that affects a source of
hydrogen or the marketability of hydrogen-related
products.
(c) Programs.--
(1) Activities.--The Secretary, in partnership with the
private sector, shall conduct programs to address--
(A) the production of hydrogen from diverse energy
sources, including--
(i) fossil fuels (including carbon capture
and sequestration);
(ii) hydrogen-carrier fuels (including
ethanol and methanol);
(iii) renewable energy resources, including
biomass; and
(iv) nuclear energy;
(B) the use of hydrogen for commercial, industrial,
and residential electric power generation;
(C) safe delivery of hydrogen or hydrogen-carrier
fuels, including--
(i) transmission by pipeline and other
distribution methods; and
(ii) convenient and economic refueling of
vehicles--
(I) at central refueling stations;
or
(II) through distributed on-site
generation;
(D) advanced vehicle technologies, including--
(i) engine and emission control systems;
(ii) energy storage, electric propulsion,
and hybrid systems;
(iii) automotive materials; and
(iv) other advanced vehicle technologies;
(E) storage of hydrogen and hydrogen-carrier fuels,
including development of materials for safe and
economic storage in gaseous, liquid, or solid form at
refueling facilities and onboard vehicles;
(F) the development of safe, durable, affordable,
and efficient fuel cells, including--
(i) fuel-flexible fuel cell power systems;
(ii) improved manufacturing processes;
(iii) high-temperature membranes;
(iv) cost-effective fuel processing for
natural gas;
(v) fuel cell stack and system reliability;
(vi) low temperature operation; and
(vii) cold start capability;
(G) development, after consultation with the
private sector, of necessary codes and standards
(including international codes and standards and
voluntary consensus standards adopted in accordance
with Office of Management and Budget Circular A-119)
and safety practices for the production, distribution,
storage, and use of hydrogen, hydrogen-carrier fuels,
and related products; and
(H) a public information program to improve the
knowledge and acceptance of the public of hydrogen-
based systems.
(2) Program goals.--
(A) Vehicles.--The goals of programs under this
section relating to vehicles include the facilitation
of--
(i) the making of a commitment by
automakers to offer safe, affordable, and
technically viable hydrogen fuel cell vehicles
in the mass market in the United States by
2015; and
(ii) the production, delivery, and
acceptance by consumers in the United States of
model year 2020 hydrogen fuel cell and other
hydrogen-powered vehicles with--
(I) a range of at least 300 miles;
(II) improved performance and ease
of driving;
(III) safety and performance
comparable to vehicle technologies in
the market on the date of enactment of
this Act; and
(IV) compared to light duty
vehicles produced for model year 2005--
(aa) substantially higher
fuel economy;
(bb) substantially lower
emissions of air pollutants;
and
(cc) equivalent or improved
vehicle fuel system crash
integrity and occupant
protection.
(B) Hydrogen energy and energy infrastructure.--The
goals of programs under this section relating to
hydrogen energy and energy infrastructure include
establishing infrastructure by not later than 2020 that
will provide--
(i) safe and convenient refueling;
(ii) improved overall efficiency;
(iii) widespread availability of hydrogen
from domestic energy sources through--
(I) production, taking into
consideration emissions levels;
(II) delivery, including
transmission by pipeline and other
distribution methods for hydrogen; and
(III) storage, including storage in
surface transportation vehicles;
(iv) hydrogen for fuel cells, internal
combustion engines, and other energy conversion
devices for portable, stationary, and
transportation applications; and
(v) other technologies in accordance with
the plan of the Department under subsection
(b).
(C) Fuel cells.--The goals of programs under this
section relating to fuel cells and the portable,
stationary, and transportation applications of fuel
cells include--
(i) producing safe, economical, and
environmentally sound hydrogen fuel cells;
(ii) producing fuel cells for light duty
vehicles and other vehicles; and
(iii) producing other technologies in
accordance with the plan of the Department
under subsection (b).
(3) Demonstration projects.--
(A) In general.--In carrying out programs under
this section, the Secretary shall fund a limited number
of demonstration projects, taking into consideration
the maturity, cost-effectiveness, and environmental
impacts of the technologies supporting each project.
(B) Project selection.--
(i) In general.--In selecting projects
under this paragraph, the Secretary shall, to
the maximum extent practicable and in
accordance with public interest, select
projects that--
(I) use hydrogen and related
products at facilities or installations
in existence on the date of enactment
of this Act, including office
buildings, military bases, vehicle
fleet centers, transit bus authorities,
and units of the National Park System;
(II) depend on reliable power from
hydrogen to carry out essential
activities;
(III) lead to the replication of
hydrogen technologies and draw hydrogen
technologies into the marketplace;
(IV) include vehicle, portable, and
stationary demonstrations of fuel cell
and hydrogen-based energy technologies;
(V) address the interdependency of
demand for hydrogen fuel cell
applications and hydrogen fuel
infrastructure;
(VI) raise awareness of hydrogen
technology among the public;
(VII) facilitate the identification
of an optimum technology among
competing alternatives;
(VIII) address distributed
generation using renewable sources; and
(IX) address applications specific
to rural or remote locations, including
isolated villages and islands, the
National Park System, and Indian
reservations.
(ii) Preference.--The Secretary shall give
preference to a project that addresses more
than 1 element described in clause (i).
(4) Deployment.--In carrying out programs under this
section, the Secretary, in partnership with the private sector,
shall conduct activities to facilitate the deployment of
hydrogen energy and energy infrastructure, fuel cells, and
advanced vehicle technologies.
(5) Funding.--
(A) In general.--The Secretary shall carry out the
programs under this section using a competitive, merit-
based review process in accordance with the generally
applicable Federal law (including regulations)
governing awards of financial assistance, contracts,
and other agreements.
(B) Research centers.--The Secretary may carry out
an activity under this section by funding a nationally
recognized university-based or Federal laboratory
research center.
(6) Cost sharing.--
(A) Research and development.--
(i) Non-federal share.--Except as otherwise
provided in this section, to be eligible for
assistance under this section, the Secretary
shall require each non-Federal source of a
research and development program under this
section to provide at least 20 percent of the
cost of the project.
(ii) Reducing and eliminating non-federal
share.--The Secretary may reduce or eliminate
the non-Federal share required under clause (i)
if the Secretary determines that the research
and development--
(I) is of a basic or fundamental
nature; or
(II) involves a technical analysis
or an educational activity.
(B) Demonstration and commercial application.--
(i) Non-federal share.--Except as otherwise
provided in this section, to be eligible for
assistance under this section, the Secretary
shall require that at least 50 percent of the
costs directly and specifically related to any
demonstration or commercial application project
under this section be provided by non-Federal
sources.
(ii) Reducing non-federal share.--The
Secretary may reduce the non-Federal share
required under clause (i) if the Secretary
determines that the reduction--
(I) is necessary and appropriate,
taking into consideration any
technological risk involved in the
project; and
(II) is necessary to achieve the
goals of this section.
(C) Calculation of amount.--In calculating the
amount of the non-Federal share provided under
subparagraphs (A) and (B), the Secretary may include
the costs of personnel, services, equipment, and other
resources relating to a project.
(D) Size of non-federal share.--The Secretary may
consider the amount of the non-Federal share in
selecting a project under this section.
(7) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) shall apply to any project carried out
through a grant, a cooperative agreement, or a contract under
this section.
(d) Interagency Task Force.--
(1) Establishment.--Not later than 120 days after the date
of enactment of this Act, the President shall establish an
interagency task force--
(A) the chairperson of which shall be the
Secretary; and
(B) that includes representatives from--
(i) the Office of Science and Technology
Policy within the Executive Office of the
President;
(ii) the Department of Transportation;
(iii) the Department of Defense;
(iv) the Department of Commerce (including
the National Institute of Standards and
Technology);
(v) the Department of State;
(vi) the Environmental Protection Agency;
(vii) the National Aeronautics and Space
Administration; and
(viii) other Federal agencies as the
President determines appropriate.
(2) Goals.--The goals of the interagency task force shall
be--
(i) to provide a safe, economical, and
environmentally sound fuel infrastructure for
hydrogen and hydrogen-carrier fuels, including
an infrastructure that supports buses and other
fleet transportation;
(ii) to support the use of fuel cells in
government and other applications, including
portable, stationary, and transportation
applications;
(iii) to promote distributed power
generation, including the generation of
combined heat, power, and clean fuels
(including hydrogen);
(iv) to develop uniform hydrogen codes,
standards, and safety protocols; and
(v) to support the integrity, safety, and
performance of vehicle hydrogen fuel systems.
(B) Duties.--
(i) In general.--The interagency task force
may organize workshops and conferences, issue
publications, and create databases to carry out
any activity described in clause (ii).
(ii) Activities.--The activities referred
to in clause (i) are--
(I) to foster the exchange of
generic, nonproprietary information and
technology among industry, academia,
and government;
(II) to develop and maintain an
inventory and assessment of hydrogen,
fuel cells, and other advanced
technologies, including the commercial
capability of each technology for the
economic and environmentally safe
production, distribution, delivery,
storage, and use of hydrogen;
(III) to integrate technical and
other information made available as a
result of the programs and activities
under this section;
(IV) to promote introduction to the
market of infrastructure for hydrogen
fuel vehicles; and
(V) to conduct an informative
program to provide hydrogen and fuel
cell information to potential end-
users.
(3) Agency cooperation.--The head of each Federal agency
shall cooperate with and furnish information to the interagency
task force, the Advisory Committee, and the Department.
(e) Advisory Committee.--
(1) Establishment.--The Hydrogen Technical and Fuel Cell
Advisory Committee is established to advise the Secretary on
programs and activities under this section.
(2) Membership.--
(A) Members.--
(i) In general.--The Advisory Committee
shall consist of not less than 12, and not more
than 25, members.
(ii) Appointment.--Each member of the
Advisory Committee shall be appointed by the
Secretary.
(iii) Requirements.--In making an
appointment under clause (ii), the Secretary
shall appoint a member to represent--
(I) domestic automobile industry;
(II) academia;
(III) professional societies;
(IV) government agencies;
(V) Federal laboratories;
(VI) foreign automobile industry;
and
(VII) financial, environmental, and
other organizations, as the Secretary
determines appropriated based on an
assessment of the technical and other
qualifications of each committee member
and the needs of the Advisory
Committee.
(B) Terms.--
(i) In general.--The term of a member of
the Advisory Committee shall be not more than 3
years.
(ii) Intervals.--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 staggered intervals to
ensure continuity in the functioning of the
Advisory Committee.
(iii) Reappointment.--A member of the
Advisory Committee may be reappointed when the
term of the member expires.
(C) Chairperson.--The Advisory Committee shall
elect a chairperson at the initial meeting of the
Advisory Committee.
(3) Duties.--The Advisory Committee shall review and make
recommendations to the Secretary regarding--
(A) carrying out programs and activities under this
section;
(B) the safety, economical, and environmental
consequences of technologies for the production,
distribution, delivery, storage, or use of hydrogen
energy and fuel cells; and
(C) the plan established under subsection (b).
(4) Consideration of recommendations.--The Secretary shall
consider, but need not adopt, any recommendation of the
Advisory Committee under paragraph (3).
(5) Biennial report.--
(A) In general.--Not later than 2 years after the
date of enactment of this Act, and biennially
thereafter, concurrent with the submission to Congress
by the President of a budget proposal, the Secretary
shall submit to Congress a biennial report describing
any recommendation made by the Advisory Committee
during the preceding 2 years.
(B) Inclusions.--The biennial report shall
include--
(i) a description of the means through
which the Secretary has carried out or plans to
carry out the recommendations described in the
report; or
(ii) if the Secretary decides not to carry
out a recommendation described in the report,
an explanation of that decision.
(f) External Review.--
(1) Plan.--
(A) In general.--The Secretary shall enter into an
agreement with the National Academy of Sciences to
review the plan under subsection (b).
(B) Timing of review.--Not later than 180 days
after receipt of the plan from the Secretary, the
National Academy of Sciences shall submit to the
Secretary the results of the review under subparagraph
(A).
(C) Transmission of review.--Not later than 45 days
after receipt of the results of the review under
subparagraph (B), the Secretary shall transmit to
Congress--
(i) a copy of the results of the review;
and
(ii)(I) a plan to carry out any
recommendation described in the review; or
(II) if the Secretary decides not to carry
out a recommendation described in the review,
an explanation of that decision.
(2) Additional review.--
(A) In general.--The Secretary shall enter into an
agreement with the National Academy of Sciences to
review the programs described in subsection (c) during
the fourth year after the date of enactment of this
Act.
(B) Inclusions.--The review under subparagraph (A)
shall include--
(i) a description of any research priority
or technical milestone established during the
preceding 3 years; and
(ii) an evaluation of any progress made
toward achieving a priority or milestone
described in clause (i) during the preceding 3
years.
(C) Timing of review.--Not later than 5 years after
the date of enactment of this Act, the National Academy
of Sciences shall--
(i) complete the review under subparagraph
(A); and
(ii) submit to the Secretary a report
describing the results of the review.
(D) Transmission.--Not later than 45 days after
receipt of the results of the review under subparagraph
(C)(ii), the Secretary shall transmit to Congress--
(i) a copy of the results of the review;
and
(ii)(I) a plan to carry out any
recommendation described in the review; or
(II) if the Secretary decides not to carry
out a recommendation described in the review,
an explanation of that decision.
(g) Representation.--The Secretary, in coordination with the
Department of Transportation, the National Institute of Standards and
Technology, and other relevant Federal agencies, may represent the
interests of the United States with respect to any activity or program
under this section before a government or nongovernmental organization,
including--
(1) other Federal, State, regional, and local governments;
(2) industry (and industry representatives), including
members of the energy and transportation industries; and
(3) in consultation with the Department of State, foreign
governments and representatives of those governments, including
international organizations.
(h) Effect of Section.--Nothing in this section decreases the
authority of the Secretary of Transportation as in existence on the day
before the date of enactment of this Act with respect to--
(1) representation of the interests of the United States
with respect to activities and programs under title 49, United
States Code;
(2) the regulation of hazardous materials transportation
under chapter 51 of title 49, United States Code;
(3) the regulation of motor vehicle safety under chapter
301 of title 49, United States Code;
(4) automobile fuel economy under chapter 329 of title 49,
United States Code;
(5) the support and promotion of research, development, and
deployment activities relating to advanced vehicle technologies
under section 5506 of title 49, United States Code;
(6) research into, and regulation of, the fuel systems
integrity, standards, and safety of hydrogen-powered vehicles
under subtitle VI of title 49, United States Code; or
(7) the regulation of pipeline safety under chapter 601 of
title 49, United States Code.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section--
(1) $273,500,000 for fiscal year 2006;
(2) $375,000,000 for fiscal year 2007;
(3) $450,000,000 for fiscal year 2008;
(4) $500,000,000 for fiscal year 2009; and
(5) $550,000,000 for fiscal year 2010.
SEC. 105. CLARIFICATION OF EXISTING COGENERATION CONTRACTS.
(a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 824a-3) is amended--
(1) by redesignating subsections (k) and (l) as subsections
(m) and (n), respectively; and
(2) by inserting after subsection (j) the following:
``(k) Termination of Mandatory Purchase and Sale Requirements.--(1)
After the date of enactment of this subsection, no electric utility
shall be required to enter into a new contract or obligation to
purchase electric energy from a qualifying cogeneration facility or a
qualifying small power production facility under this section if the
Commission finds that the qualifying cogeneration facility or
qualifying small power production facility has nondiscriminatory access
to--
``(A)(i) independently administered, auction-based day
ahead and real time wholesale markets for the sale of electric
energy; and
``(ii) wholesale markets for long-term sales of capacity
and electric energy; or
``(B)(i) transmission and interconnection services that are
provided by a Commission-approved regional transmission entity
and administered pursuant to an open access transmission tariff
that affords nondiscriminatory treatment to all customers; and
``(ii) competitive wholesale markets that provide a
meaningful opportunity to sell capacity, including long-term
and short-term sales, and electric energy, including long-term,
short-term, and real-time sales, to buyers other than the
utility to which the qualifying facility is interconnected,
except that, in determining whether a meaningful opportunity to
sell exists, the Commission shall consider, among other
factors, evidence of transactions within the relevant market;
or
``(C) wholesale markets for the sale of capacity and
electric energy that are, at a minimum, of comparable
competitive quality as markets described in subparagraphs (A)
and (B).
``(2)(A) In this paragraph, the term `existing qualifying
cogeneration facility' means a facility that--
``(i) was a qualifying cogeneration facility on the date of
enactment of this paragraph; or
``(ii) had filed with the Commission a notice of self-
certification, a self-recertification, or an application for
Commission certification under section 292.207 of title 18,
Code of Federal Regulations (or a successor regulation), prior
to the date on which the Commission issues the final rule
required by subsection (l).
``(B) After the date of enactment of this subparagraph, no electric
utility shall be required pursuant to this section to enter into a new
contract or obligation to purchase from or sell electric energy to a
facility that is not an existing qualifying cogeneration facility
unless the facility meets the criteria for qualifying cogeneration
facilities established by the Commission pursuant to the rulemaking
required by subsection (l).
``(3)(A) Any electric utility may file an application with the
Commission for relief from the mandatory purchase obligation pursuant
to this subsection on a service territory-wide basis.
``(B) The application shall set forth the factual basis on which
relief is requested and describe why the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) of this subsection have
been met.
``(C) After notice (including sufficient notice to potentially
affected qualifying cogeneration facilities and qualifying small power
production facilities) and an opportunity for comment, the Commission
shall make a final determination within 90 days of receipt of the
application regarding whether the conditions set forth in subparagraphs
(A), (B) or (C) of paragraph (1) have been met.
``(4)(A) At any time after the Commission makes a finding under
paragraph (3) relieving an electric utility of the obligation of the
electric utility to purchase electric energy, a qualifying cogeneration
facility, a qualifying small power production facility, a State agency,
or any other affected person may apply to the Commission for an order
reinstating the obligation of the electric utility to purchase electric
energy under this section.
``(B) The application shall set forth the factual basis on which
the application is based and describe why the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) of this subsection are
no longer met.
``(C) After notice (including sufficient notice to potentially
affected utilities) and opportunity for comment, the Commission shall
issue an order within 90 days after receipt of the application
reinstating the obligation of the electric utility to purchase electric
energy under this section if the Commission finds that the conditions
set forth in subparagraph (A), (B), or (C) of paragraph (1) that
relieved the obligation to purchase, are no longer met.
``(5) After the date of enactment of this subsection, no electric
utility shall be required to enter into a new contract or obligation to
sell electric energy to a qualifying cogeneration facility or a
qualifying small power production facility under this section if the
Commission finds that--
``(A) competing retail electric suppliers are willing and
able to sell and deliver electric energy to the qualifying
cogeneration facility or qualifying small power production
facility; and
``(B) the electric utility is not required by State law to
sell electric energy in the service territory of the electric
utility.
``(6) Nothing in this subsection affects the rights or remedies of
any party under any contract or obligation, in effect or pending
approval before the appropriate State regulatory authority or non-
regulated electric utility on the date of enactment of this subsection,
to purchase electric energy or capacity from or to sell electric energy
or capacity to a qualifying cogeneration facility or qualifying small
power production facility under this Act (including the right to
recover costs of purchasing electric energy or capacity).
``(7)(A) The Commission shall issue and enforce such regulations as
are necessary to ensure that an electric utility that purchases
electric energy or capacity from a qualifying cogeneration facility or
qualifying small power production facility in accordance with any
legally enforceable obligation entered into or imposed under this
section recovers all prudently incurred costs associated with the
purchase.
``(B) A regulation under subparagraph (A) shall be enforceable in
accordance with the provisions of law applicable to enforcement of
regulations under the Federal Power Act (16 U.S.C. 791a et seq.).
``(l) Rulemaking for New Qualifying Facilities.--(1)(A) Not later
than 180 days after the date of enactment of this subparagraph, the
Commission shall issue a rule revising the criteria established under
section 292.205 of title 18, Code of Federal Regulations (or a
successor regulation), for new qualifying cogeneration facilities
seeking to sell electric energy pursuant to section 210 to ensure
that--
``(i) the thermal energy output of a new qualifying
cogeneration facility is used in a productive and beneficial
manner;
``(ii) the electrical, thermal, and chemical output of the
cogeneration facility is used fundamentally for industrial,
commercial, or institutional purposes and is not intended
fundamentally for sale to an electric utility, taking into
account technological, efficiency, economic, and variable
thermal energy requirements, as well as State laws applicable
to sales of electric energy from a qualifying facility to the
host facility of the qualifying facility; and
``(iii) continuing progress is made in the development of
efficient electric energy generating technology.
``(B)(i) The rule issued pursuant to subparagraph (A) shall be
applicable only to facilities that seek to sell electric energy
pursuant to section 210.
``(ii) For all other purposes, except as specifically provided in
section (k)(2)(A), qualifying facility status shall be determined in
accordance with this Act.
``(2) Notwithstanding rule revisions under paragraph (1), the
criteria of the Commission for qualifying cogeneration facilities in
effect prior to the date on which the Commission issues the final rule
required by paragraph (1) shall continue to apply to any cogeneration
facility that--
``(A) was a qualifying cogeneration facility on the date of
enactment of this paragraph, or
``(B) had filed with the Commission a notice of self-
certification, self-recertification, or an application for
Commission certification under section 292.207 of title 18,
Code of Federal Regulations (or a successor regulation) prior
to the date on which the Commission issues the final rule
required by paragraph (1).''.
(b) Elimination of Ownership Limitations.--
(1) Qualifying small power production facility.--Section
3(17) of the Federal Power Act (16 U.S.C. 796(17)) is amended
by striking subparagraph (C) and inserting the following:
``(C) `qualifying small power production facility' means a small
power production facility that the Commission determines, by rule,
meets such requirements (including requirements respecting fuel use,
fuel efficiency, and reliability) as the Commission may, by rule,
prescribe;''.
(2) Qualifying cogeneration facility.--Section 3(18) of the
Federal Power Act (16 U.S.C. 796(18)) is amended by striking
subparagraph (B) and inserting the following:
``(B) `qualifying cogeneration facility' means a cogeneration
facility that the Commission determines, by rule, meets such
requirements (including requirements respecting minimum size, fuel use,
and fuel efficiency) as the Commission may, by rule, prescribe;''.
SEC. 106. COGENERATION DEVELOPMENT.
(a) Electrical Generation and Rates.--
(1) Benefits of distributed generation of electricity.--
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as
amended by section 105) is amended by adding at the end the
following:
``SEC. 215. BENEFITS OF DISTRIBUTED GENERATION OF ELECTRICITY.
``(a) Study.--
``(1) In general.--
``(A) Potential benefits.--The Secretary, in
consultation with the Commission, shall conduct a study
of the potential benefits of cogeneration and small
power production.
``(B) Recipients.--The benefits described in
subparagraph (A) include benefits that are received
directly or indirectly by--
``(i) an electricity distribution or
transmission service provider;
``(ii) other customers served by an
electricity distribution or transmission
service provider; and
``(iii) the general public in the area
served by the public utility in which the
cogenerator or small power producer is located.
``(2) Inclusions.--The study shall include an analysis of
the potential benefits of--
``(A) increased system reliability;
``(B) improved power quality;
``(C) the provision of ancillary services;
``(D) reduction of peak power requirements through
onsite generation;
``(E) the provision of reactive power or volt-
ampere reactives;
``(F) an emergency supply of power;
``(G) offsets to investments in generation,
transmission, or distribution facilities that would
otherwise be recovered through rates;
``(H) diminished land use effects and right-of-way
acquisition costs; and
``(I) reducing the vulnerability of a system to
terrorism.
``(3) Valuation of benefits.--In carrying out the study,
the Secretary shall determine an appropriate method of valuing
potential benefits under varying circumstances for individual
cogeneration or small power production units.
``(b) Report.--Not later than 18 months after the date of enactment
of this section, the Secretary shall--
``(1) complete the study;
``(2) provide an opportunity for public comment on the
results of the study; and
``(3) submit to the President and Congress a report
describing--
``(A) the results of the study; and
``(B) information relating to the public comments
received under paragraph (2).
``(c) Publication.--After submission of the report under subsection
(b) to the President and Congress, the Secretary shall publish the
report.''.
(2) Rate and charges; schedules; suspension of new rates.--
Section 205 of the Federal Power Act (16 U.S.C. 824d) is
amended by adding at the end the following:
``(g)(1) Subject to paragraph (2), if a rate or charge made,
demanded, or received by a public utility subject to regulation by the
Commission varies because of (or includes any component reflecting) the
existence or volume of any self-generation, cogeneration, or small
power production by the ratepayer (or by any third party wholly inside
the premises of the ratepayer and on the side of the ratepayer of the
meter that measures services received from that public utility), the
rate or charge shall not be considered just, reasonable, or
nondiscriminatory.
``(2) If a rate or charge described in paragraph (1) varies because
of (or a component of the rate or charge reflects) an actual difference
in the cost to the public utility of service relative to the cost to
the utility of serving ratepayers without self-generation,
cogeneration, or small-power production, the rate or charge shall be
considered just, reasonable, and nondiscriminatory.
``(3) Not later than the date of enactment of this subsection, any
public utility in the jurisdiction of the Commission shall--
``(A) modify any tariff charged by the utility so that a
customer that installs, owns, or operates self-generation,
cogeneration, or small power production is served under rates,
rules, and requirements identical to those that apply to a
customer of the same class that does not install, own, or
operate self-generation, cogeneration, or small power
production; and
``(B) withdraw any provision that provides for punitive
terms, rates, or rules if a customer installs, owns, or
operates self-generation, cogeneration or small power
production equipment.''.
(3) Certain interconnection authority.--Section 210 of the
Federal Power Act (16 U.S.C. 824i) is amended--
(A) by redesignating subsection (e) as subsection
(f); and
(B) by inserting after subsection (d) the
following:
``(e)(1) Notwithstanding any other provision of this section, to
the extent any cogenerator or small power producer seeks to
interconnect the generator of the cogenerator or small power producer
to the facilities of any public utility under the jurisdiction of the
Commission for the purpose of engaging in a transaction under the
jurisdiction of the Commission, the cogenerator or small power producer
shall be entitled to elect to apply--
``(A) the interconnection rules and procedures adopted by
the Commission by rule; or
``(B) the interconnection rules and procedures adopted by
the State in which the cogenerator or small power producer is
located.
``(2) The choice under paragraph (1) does not affect jurisdiction
over the terms and conditions of services by the public utility to the
cogenerator or small power producer.''.
(b) Transportation and Sale of Natural Gas.--Section 4(b) of the
Natural Gas Act (15 U.S.C. 717c(b)) is amended by striking subsection
(b) and inserting the following:
``(b)(1) No natural-gas company shall, with respect to any
transportation or sale of natural gas subject to the jurisdiction of
the Commission, as between localities or classes of service--
``(A) make or grant any undue preference or advantage to
any person or subject any person to undue prejudice or
disadvantage; or
``(B) maintain any unreasonable difference in rates,
charges, service, facilities, or in any other respect.
``(2) A person using natural gas for cogeneration shall obtain from
a natural-gas company rates and conditions of service not less
advantageous than the rates and conditions of service for a person
using natural gas primarily to generate electricity.
``(3) Not later than 1 year after the date of enactment of this
paragraph, each natural gas company shall amend any existing schedule
of rates and conditions of service as necessary to comply with this
subsection.''.
SEC. 107. EFFICIENT USE OF NATURAL GAS FOR ELECTRIC ENERGY GENERATION.
(a) Findings.--Congress finds that it is in the national interest
to ensure that electric energy is generated from natural gas in the
most efficient manner practicable.
(b) Policy.--If 2 or more natural gas-fired electric energy
generation facilities are capable of meeting demand for electric
energy, the facility that generates electric energy at the greatest
level of thermal efficiency, and at the lowest cost to consumers of
electric energy, shall be used first, in accordance with any
operational or reliability requirement of an electric energy
transmission system.
(c) Action by States.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Governor (or other appropriate
regulatory authority) of each State may establish and carry out
a program to achieve the policy described in subsection (b)
with respect to electric energy generation facilities that are
subject to the regulatory jurisdiction of the State.
(2) Certification.--If the Governor (or other appropriate
regulatory authority) of a State determines that the policy
described in subsection (b) is carried out appropriately in the
State through a State program, or another program, in existence
on the date of enactment of this Act, the Governor shall submit
to the Secretary of Energy a certification of that
determination.
(d) Action by Federal Government.--The Secretary of Energy shall
promulgate regulations to carry out the policy described in subsection
(b) to apply to any State--
(1) the Governor (or other appropriate regulatory
authority) of which fails to act in accordance with subsection
(c); and
(2) the electric energy generation facilities of which are
not subject to State regulatory authority.
SEC. 108. DEMAND SIDE MANAGEMENT FOR INDUSTRIALS AND UTILITIES: NET
METERING AND OTHER STANDARDS.
(a) Adoption of Standards.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(11) Net metering.--
``(A) Definition of net metering service.--In this
paragraph, the term `net metering service' means
service to an electric consumer under which electric
energy generated by that electric consumer from an
eligible on-site generating facility and delivered to
the local distribution facilities may be used to offset
electric energy provided by the electric utility to the
electric consumer during the applicable billing period.
``(B) Availability.--Each electric utility shall
make available on request net metering service to any
electric consumer that the electric utility serves.
``(12) Fuel sources.--Each electric utility shall develop a
plan to minimize dependence on 1 fuel source and to ensure that
the electric energy the electric utility sells to consumers is
generated using a diverse range of fuels and technologies,
including renewable technologies.
``(13) Fossil fuel generation efficiency.--Each electric
utility shall develop and implement a 10-year plan to increase
the efficiency of the fossil fuel generation of the electric
utility.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(3)(A) Not later than 2 years after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the state regulatory authority has
ratemaking authority) and each nonregulated electric utility shall
commence the consideration referred to in section 111, or set a hearing
date for the consideration, with respect to each standard established
under paragraphs (11) through (13) of section 111(d).
``(B) Not later than 3 years after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the state regulatory authority has
ratemaking authority), and each nonregulated electric utility, shall
complete the consideration, and shall make the determination, referred
to in section 111 with respect to each standard established under
paragraphs (11) through (13) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended--
(A) by inserting ``(1)'' before ``Each''; and
(B) by adding at the end the following:
``(2) In the case of each standard established under
paragraphs (11) through (13) of section 111(d), the reference
contained in this subsection to the date of enactment of this
Act shall be deemed to be a reference to the date of enactment
of those paragraphs.''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is
amended by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) shall not apply
to the standards established under paragraphs (11) through (13) of
section 111(d) in the case of any electric utility in a State if,
before the date of enactment of this subsection--
``(1) the State has implemented for the utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for the State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard concerned
(or a comparable standard) for the utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the utility.''.
(B) Cross reference.--Section 124 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2634) is amended--
(i) in the first sentence, by inserting
``(a) Completed proceedings and actions.--''
before ``For'';
(ii) in the second sentence, by inserting
``(b) Incomplete proceedings and actions.--''
before ``For''; and
(iii) by adding at the end the following:
``(c) Cross Reference.--In the case of each standard established
under paragraphs (11) through (13) of section 111(d), the reference
contained in this subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of those
paragraphs.''.
SEC. 109. DEMAND SIDE MANAGEMENT FOR RESIDENTIAL CUSTOMERS: SMART
METERING.
(a) In General.--Section 111(d) of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(14) Time-based metering and communications.--(A) Not
later than 18 months after the date of enactment of this
paragraph, each electric utility shall offer each customer
class of the electric utility, and provide individual customers
on customer request, a time-based rate schedule under which the
rate charged by the electric utility varies during different
time periods and reflects the variance, if any, in the costs of
the electric utility of generating and purchasing electricity
at the wholesale level.
``(B) The time-based rate schedule shall enable the
electric consumer to manage energy use and cost through
advanced metering and communications technology.
``(C) The types of time-based rate schedules that may be
offered under the schedule referred to in subparagraph (A)
include, among others--
``(i) time-of-use pricing under which--
``(I) electricity prices are set for a
specific time period on an advance or forward
basis, typically not changing more often than
twice a year, based on the cost to the utility
of generating or purchasing such electricity at
the wholesale level for the benefit of the
consumer; and
``(II) policy prices paid for energy
consumed during those periods shall be pre-
established and known to consumers in advance
of the consumption, allowing the consumers to
vary the demand and usage of the consumers in
response to such prices and manage the energy
costs of the consumers by shifting usage to a
lower cost period or reducing the overall
consumption of the consumers;
``(ii) critical peak pricing under which time-of-
use prices are in effect except for certain peak days,
when prices may reflect the costs of generating or
purchasing electricity at the wholesale level and when
consumers may receive additional discounts for reducing
peak period energy consumption; and
``(iii) real-time pricing under which electricity
prices are set for a specific time period on an
advanced or forward basis, reflecting the cost to the
utility of generating or purchasing electricity at the
wholesale level, and may change as often as hourly.
``(D) Each electric utility subject to subparagraph (A)
shall provide each customer requesting a time-based rate with a
time-based meter capable of enabling the utility and customer
to offer and receive that rate, respectively.
``(E) For purposes of implementing this paragraph, any
reference contained in this section to the date of enactment of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 et seq.) shall be deemed to be a reference to the date of
enactment of this paragraph.
``(F) In a State that permits third-party marketers to sell
electric energy to retail electric consumers, the consumers
shall be entitled to receive the same time-based metering and
communications device and service as a retail electric consumer
of the electric utility.
``(G) Notwithstanding subsections (b) and (c) of section
112, not later than 18 months after the date of enactment of
this paragraph, each State regulatory authority shall--
``(i) conduct an investigation in accordance with
section 115(i); and
``(ii) issue a decision whether it is appropriate
to implement the standards set out in subparagraphs (A)
and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public Utilities Regulatory Policies Act
of 1978 (16 U.S.C. 2625) is amended--
(1) in subsection (b)--
(A) by inserting ``and the standard for time-based
metering and communications established by section
111(d)(14)'' after ``the standard for time-of-day rates
established by section 111(d)(3)''; and
(B) by inserting ``and communications'' after ``are
likely to exceed the metering''; and
(2) by adding the at the end the following:
``(i) Time-Based Metering and Communications.--(1) In making a
determination with respect to the standard established by section
111(d)(14), the investigation requirement of section 111(d)(14)(F)
shall apply in accordance with this subsection.
``(2) A state regulatory authority shall conduct an investigation
and issue a decision whether or not it is appropriate for electric
utilities to provide and install time-based meters and communications
devices for each of their customers that enable the customers to
participate in time-based pricing rate schedules and other demand
response programs.''.
(c) Federal Assistance on Demand Response.--Section 132(a) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642(a)) is
amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) technologies, techniques, and ratemaking methods
relating to advanced metering and communications and the use of
those technologies, techniques, and methods in demand response
programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2642) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Demand Response.--The Secretary shall be responsible for--
``(1) informing consumers of the availability, advantages,
and benefits of advanced metering and communications
technologies, including the funding of demonstration or pilot
projects;
``(2) working with States, utilities, other energy
providers, and advanced metering and communications experts to
identify and address barriers to the adoption of demand
response programs; and
``(3) not later than 180 days after the date of enactment
of the Natural Gas Price Reduction Act of 2005, providing
Congress with a report that identifies and quantifies the
national benefits of demand response and makes a recommendation
on achieving specific levels of those benefits by January 1,
2008.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--It is the policy of the United States to
encourage States to coordinate, on a regional basis, State
energy policies to provide reliable and affordable electricity
demand response services to the public.
(2) Technical assistance.--The Secretary of Energy shall
provide technical assistance to States and regional
organizations formed by 2 or more States to assist the
organizations in--
(A) identifying the areas with the greatest
electricity demand response potential;
(B) identifying and resolving problems in
transmission and distribution networks, including
through the use of demand response;
(C) developing plans and programs to use demand
response to respond to peak demand or emergency needs;
and
(D) identifying specific measures consumers can
take to participate in those demand response programs.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Federal Energy Regulatory Commission
shall prepare and publish an annual report, by appropriate
region, that assesses electricity demand response resources,
including those available from all consumer classes, and that
identifies and reviews--
(A) saturation and penetration rate of advanced
meters and communications technologies, devices, and
systems;
(B) existing demand response programs and time-
based rate programs;
(C) the annual resource contribution of demand
resources;
(D) the potential for demand response as a
quantifiable, reliable resource for regional planning
purposes; and
(E) steps taken to ensure that, in regional
transmission planning and operations, demand resources
are provided equitable treatment as a quantifiable,
reliable resource relative to the resource obligations
of any load-serving entity, transmission provider, or
transmitting party.
(f) Federal Encouragement of Demand Response Devices.--It is the
policy of the United States that--
(1) time-based pricing and other forms of electricity
demand response, under which electricity customers are provided
with electricity price signals and the ability to benefit by
responding to the consumers, shall be encouraged, and the
deployment of the technology and devices that enable
electricity customers to participate in the pricing and demand
response systems shall be facilitated; and
(2) the benefits of the demand response that accrue to
persons not deploying the technology and devices, but who are
part of the same regional electricity entity, shall be
recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by
adding at the end the following:
``(4)(A) Not later than 1 year after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the authority has ratemaking authority) and
each nonregulated electric utility shall commence the consideration
referred to in section 111, or set a hearing date for the
consideration, with respect to the standard established by section
111(d)(14).
``(B) Not later than 2 years after the date of enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which the authority has ratemaking authority), and
each nonregulated electric utility, shall complete the consideration,
and shall make the determination, referred to in section 111 with
respect to the standard established by section 111(d)(14).''.
SEC. 110. PROTECTING INDUSTRIAL COGENERATORS.
Nothing in subtitle D of the Energy Conference Report (House of
Representatives Report 108-375, 108th Congress, agreed to November 17,
2003) (relating to participant funding) shall apply to a qualifying
facility, as determined under section 210(n) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 824a-3) (as added by section
104).
SEC. 111. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.
(a) Report.--
(1) In general.--Not later than July 1, 2007, and annually
thereafter, the President shall submit to Congress a report,
based on the most recent edition of the Annual Energy Outlook
published by the Energy Information Administration, assessing
the progress made by the United States toward the goal of
reducing dependence on imported petroleum sources by 2015.
(2) Contents.--The report under paragraph (1) shall--
(A) include a description of the implementation,
during the previous fiscal year, of provisions of this
Act and amendments made by this Act relating to
domestic crude petroleum production;
(B) assess the effectiveness of those provisions in
meeting the goal described in paragraph (1); and
(C) describe the progress in developing and
implementing measures under subsection (b).
(b) Measures To Reduce Import Dependence Through Increased Domestic
Petroleum Conservation.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall develop and
implement measures to conserve petroleum in end-uses throughout
the economy of the United States that are sufficient to reduce
total demand for petroleum in the United States by 1,750,000
barrels per day from the quantity projected for calendar year
2015 in the reference case contained in the report of the
Energy Information Administration entitled ``Annual Energy
Outlook 2005''.
(2) Contents.--The measures under paragraph (1) shall be
designed to ensure continued reliable and affordable energy for
consumers.
(3) Implementation.--The measures under paragraph (1) shall
be implemented under existing authorities of appropriate
Federal executive agencies identified by the President.
SEC. 112. NATIONAL GASIFICATION STRATEGY FOR POWER SECTOR.
(a) Streamlined Permitting.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall promulgate regulations to revise the
requirements under section 111 of the Clean Air Act (42 U.S.C.
7411), and parts C and D of title I of that Act (42 U.S.C. 7470
et seq.), in accordance with this section.
(2) Application date.--The revised regulations adopted
pursuant to this section shall apply until January 1, 2017, but
may continue to apply after that date if the Environmental
Protection Agency determines that such regulations are
authorized by another provision of the Clean Air Act (42 U.S.C.
7401 et seq.).
(b) Applicability.--A qualifying project shall not be considered to
be a major stationary source that is subject to the preconstruction
review requirements of parts C and D of title I of the Clean Air Act
(42 U.S.C. 7470 et seq.), for purposes of constructing such qualifying
projects, provided each of the following requirements of this
subsection is met:
(1) Emissions reductions are achieved by other stationary
sources located within the same air quality region, as
determined by the Administrator based on best available air
quality modeling, and such emissions reductions offset the
emissions of the qualifying project on a pollutant-by-pollutant
basis.
(2) Such emissions reductions by other stationary sources
are achieved through a federally enforceable limitation that is
not otherwise required under the Clean Air Act, and occurred
within a 5-year period prior to the date that the qualifying
project commenced commercial operation.
(3)(A) The owner or operator of qualifying project
demonstrates the following requirements are met prior to the
commencement of construction of the project:
(i) In an area designated as attainment or
unclassifiable under section 107(d) of the Clean Air
Act (42 U.S.C. 7407(d)), the emissions increase
resulting from the qualifying project will not cause or
contribute to air pollution in excess of any national
ambient air quality standard.
(ii) In an area designated as nonattainment under
section 107(d) of the Clean Air Act (42 U.S.C.
7407(d)), the emissions increase resulting from the
qualifying project will not interfere with any program
to assure that the national ambient air quality
standards are achieved and maintained.
(B) Demonstrations performed under this paragraph shall be
based on the offsetting emissions reductions achieved under
paragraphs (1) and (2), as well as other design and emissions
parameters that are relevant for assessing air quality impacts
of the emissions increase from the project.
(4) The qualifying project complies with the emissions
standards that are established for integrated gasification
combined cycle plants under section 111 of the Clean Air Act
(42 U.S.C. 7411).
(c) Expedited Permitting.--
(1) The permitting authority shall expedite the
preconstruction review requirements of parts C and D of title I
of the Clean Air Act (42 U.S.C. 7470 et seq.) in the case of
qualifying projects that do not obtain offsetting emissions
reductions under subsection (a).
(2) Expedited preconstruction review shall include the
following:
(A) Application of the emissions standards for
integrated gasification combined cycle plants under
section 111 of that Act (42 U.S.C. 7411), instead of
case-by-case performance standards based on best
available control technology or lowest achievable
emissions rate under parts C and D of title I of that
Act (42 U.S.C. 7470 et seq.).
(B) Other appropriate measures to accelerate
preconstruction review and issuance of all necessary
air permits for the construction and operation of
qualifying projects under parts C and D of title I of
that Act (42 U.S.C. 7470 et seq.).
(d) Definitions.--In this section:
(1) The term ``biomass'' means any animal, agricultural or
plant waste, by-product of wood or paper mill operations such
as lignin in spent pulping liquors, and other products of
forestry maintenance, but does not include paper that is
commonly recycled.
(2) The term ``electric generation unit'' means any
facility at least 50 percent of the total annual net output of
which is electrical power.
(3) The term ``industrial gasification technology'' means
any process that converts an eligible solid or liquid into a
gaseous condition for direct use or subsequent chemical or
physical conversion. An eligible solid or liquid shall include
the following materials: coal, petroleum residue (such as
carbonization product of high-boiling hydrocarbon fractions
obtained in petroleum processing), biomass, carbonized or semi-
carbonized matter (including peat) or other materials that are
recovered for their feedstock, fuel, or other energy value.
(4) The term ``integrated gasification combined cycle
technology'' means any combination of equipment, including all
related power generation equipment, that is used at a single
location to convert coal or residuals into synthesis gas that
is then used as a fuel to generate electricity.
(5) The term ``natural gas combined cycle'' means a system
that--
(A) is comprised of 1 or more combustion turbines,
heat recovery steam generators, and steam turbines; and
(B) combusts only natural gas or fuel oil, with
natural gas comprising at least 90 percent, and fuel
oil not more than 10 percent, of the unit's annual heat
input in any year.
(6) The term ``qualifying electric generation project''
means a project that meets each of the following eligibility
requirements:
(A) The project uses integrated gasification
combined cycle technology in the construction of a new
electric generating unit, the repowering of an existing
coal-fired electric generation unit, or the conversion
of an existing natural gas combined cycle unit to
operate on coal instead of natural gas.
(B) The project meets the emissions standards that
are established for integrated gasification combined
cycle plants under section 111 of the Clean Air Act (42
U.S.C. 7411).
(C) The project commences commercial operation
after December 31, 2006.
(7) The term ``qualifying industrial project'' means any
project that uses an industrial gasification technology that
meets the following eligibility requirements:
(A) The energy output of the project is primarily
used for applications in one or more of the following
industries: chemicals, fertilizer, glass, steel,
petroleum coke, forest products, and agriculture-
feedlots.
(B) The gasification technology meets the emissions
standards that are established for integrated
gasification combined cycle plants under section 111 of
the Clean Air Act (42 U.S.C. 7411).
(C) The gasification technology commenced
commercial operation after December 31, 2006.
(8) The term ``qualifying project'' means a qualifying
electric generation project or a qualifying industrial project.
(e) Construction Incentives.--
(1) Definitions.--In this subsection:
(A) Carbon capture ready.--The term ``carbon
capture ready'', with respect to a facility or
equipment, means an industrial gasification project
design that is determined by the Secretary to be
capable of accommodating the equipment likely to be
necessary to capture, separate on a long-term basis,
isolate, or remove carbon dioxide from the gaseous
stream (for later use or sequestration) that would
otherwise be emitted during the generation of
electricity.
(B) Gasification combined cycle technology
facility.--The term ``gasification combined cycle
technology facility'' means an integrated gasification
combined cycle facility that contains any combination
of equipment (including power generation equipment)
that--
(i) is used at a single location to convert
coal or a residual into synthesis gas to be
used as a fuel to generate electricity;
(ii) is carbon capture ready;
(iii) is depreciable or that can be
amortized; and
(iv) achieves--
(I) a nitrogen emissions rate of at
least 0.06 lbs/mmBtu; and
(II) a sulfur dioxide emissions
rate of at least 0.08 lbs/mmBtu.
(C) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(2) Incentives.--The Secretary shall establish a program
under which construction incentives are provided for eligible
facilities that are certified by the Secretary in accordance
with this subsection.
(3) Certification.--
(A) In general.--Subject to subparagraph (D), the
Secretary shall certify the first 6 eligible facilities
for which an application for certification is submitted
to the Secretary.
(B) Eligible facilities.--To be eligible to receive
certification under this subsection, a facility shall
be permitted--
(i) to be a gasification combined cycle
technology facility;
(ii) to be built and in continuous
operation beginning not later than December 31,
2013;
(iii) to have a fuel input of coal of not
less than 75 percent; and
(iv) to have a design capability of not
less than 500 megawatts.
(v) to own or have all land rights for
construction and for operation of the facility;
and
(vi) to demonstrate a financial condition
that is necessary to achieve financial closing
for the facility.
(C) Application.--
(i) In general.--To receive certification
under subparagraph (A), on receipt for an
eligible facility of a prevention of
significant deterioration of air quality (PSD)
permit from the Administrator of the
Environmental Protection Agency and all other
required Federal, State, and local permits, the
owner or operator of the facility shall submit
to the Secretary an application in the manner
required by the Secretary.
(ii) Contents.--An application under this
subparagraph shall contain--
(I) a plan for the construction of
the eligible facility; and
(II) any other information the
Secretary may require.
(D) Selection.--The Secretary shall select for
certification under subparagraph (A)--
(i) 4 eligible facilities that are--
(I) investor-owned utilities; or
(II) independent power producers;
and
(ii) 2 eligible facilities that are--
(I) public utilities; or
(II) rural power cooperatives.
(4) Grants.--
(A) In general.--The Secretary shall establish a
program under which the Secretary shall provide grants
to the eligible facilities described in paragraph
(3)(D)(ii) to pay the Federal share of the costs of
construction of those eligible facilities.
(B) Timing.--The Secretary shall make a grant under
this paragraph commencing on the date the Secretary
determines that an eligible facility has achieved
financial closing and obtained financing from 1 or more
commercial lending institutions.
(C) Federal share.--The Federal share of the
certified costs of construction of an eligible facility
under this paragraph shall be, as determined by the
Secretary--
(i) in the case of an eligible entity that
was among the first 3 eligible entities to
receive certification under paragraph (3)(A),
not more than 40 percent; and
(ii) in the case of an eligible entity that
was among the last 3 eligible entities to
receive certification under paragraph (3)(A),
not more than 30 percent.
(5) Authorization of appropriations.--There are authorized
such sums as are necessary to carry out this subsection, to
remain available until expended.
SEC. 113. INDUSTRIAL GASIFICATION DEMONSTRATION AND DEPLOYMENT PROGRAM.
(a) Definitions.--In this section:
(1) Biomass.--
(A) In general.--The term ``biomass'' means--
(i) any agricultural or plant waste;
(ii) a byproduct of a wood or paper mill,
such as lignin in spent pulping liquors; and
(iii) any other product of forestry
maintenance.
(B) Exclusion.--The term ``biomass'' does not
include paper that is commonly recycled.
(2) Carbon-capture ready.--The term ``carbon-capture
ready'' means an industrial gasification plant design that is
determined by the Secretary to be capable of accommodating the
equipment likely to be necessary to capture carbon dioxide from
the gaseous stream, for later use or sequestration, that would
otherwise be emitted in the flue gas from a project that uses a
non-renewable fuel.
(3) Coal.--The term ``coal'' means any carbonized or semi-
carbonized matter, including peat.
(4) Eligible entity.--The term ``eligible entity'' means
any entity that applies for Federal assistance that will
principally be used for applications with a standard industrial
classification relating particularly to chemicals, fertilizers,
glass, steel, petcoke, forest products, or agriculture
feedlots, as determined by the Secretary.
(5) Gasification technology.--The term ``gasification
technology'' means any process by which a solid or liquid
product from coal, petroleum residue, biomass, or other
material recovered for its energy or feedstock value is
converted into a gaseous condition for--
(A) direct use; or
(B) subsequent chemical or physical conversion.
(6) Industrial gasification project.--The term ``industrial
gasification project'' means a project that--
(A) is proposed by an eligible entity; and
(B) employs gasification technology.
(7) Petroleum residue.--The term ``petroleum residue''
means a carbonization product of high-boiling hydrocarbon
fractions obtained through petroleum processing.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(9) Total project investment.--The term ``total project
investment'' means--
(A) the total project cost for engineering, design,
procurement, construction, project development, and
financing; and
(B) reasonable contingency reserves (as determined
by the Secretary and the project sponsor).
(b) Finding; Purpose.--
(1) Finding.--Congress finds that widespread domestic use
of gasification technologies can significantly contribute to
the economy, the environment, and the general welfare of the
people of the United States.
(2) Purpose.--The purpose of this section is to
significantly accelerate the deployment of gasification
technologies for industrial application in order to--
(A) to produce the natural gas equivalent of
1,000,000,000 cubic feet of natural gas annually, or 5
percent of the total demand for natural gas;
(B) to reduce imports of energy from foreign energy
sources;
(C) to preserve domestic jobs;
(D) to reduce the demand pressure on domestic
natural gas prices and supply for all consumers by
promoting the use of gas derived from--
(i) domestic coal;
(ii) biomass; and
(iii) other domestic fuel sources for
industrial use;
(E) to avoid dependence on remote foreign sources
for chemicals, ammonia-based fertilizers, and other
strategic products for which natural gas is
traditionally a significant component in the
manufacturing process;
(F) to promote the use of domestic coal, biomass,
and other fuel sources in an environmentally benign
manner;
(G) to promote the position of the United States as
a global leader in advanced gasification technology and
related sales; and
(H) to promote the potential for future use or
sequestration of industrial carbon emissions in an
efficient manner.
(c) Industrial Gasification Demonstration and Deployment Program.--
(1) Establishment.--The Secretary shall establish and
implement an industrial gasification demonstration and
deployment program.
(2) Solicitation of applications.--Not less frequently than
every 18 months, the Secretary, in consultation with the
Secretary of the Treasury, shall solicit from eligible entities
applications for Federal assistance described in subsection (e)
for the construction and operation of facilities that gasify
coal, petroleum residues, or biomass.
(3) Regulations.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, the Secretary, after
consultation with the Secretary of the Treasury, shall
issue final regulations to carry out this section.
(B) Limitation.--The regulations shall be--
(i) limited to the activities described in
this section; and
(ii) generally consistent with the Federal
Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5901 et seq.).
(4) Study of regulatory barriers.--
(A) In general.--The Secretary shall conduct a
study of the barriers to timely deployment of
commercial gasification projects under this subsection.
(B) Consultation.--In carrying out the study, the
Secretary shall consult with--
(i) Federal and State regulatory agencies;
(ii) potential industrial and utility users
and vendors of gasification technology;
(iii) suppliers and transporters of any
feedstock materials or plant products;
(iv) financial institutions; and
(v) knowledgeable public citizens.
(5) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate a
report describing--
(A) the results of the study under paragraph (4);
and
(B) recommendations of the Secretary that may
facilitate the introduction of gasification technology.
(d) Project Criteria.--
(1) In general.--On evaluating an application for Federal
financial assistance described in subsection (e), the
Secretary, in consultation with the Secretary of the Treasury,
shall consider--
(A) the potential of the proposed project to
surpass existing environmental standards in the
proposed project area;
(B) the likelihood of the project to preserve
domestic jobs at the proposed site and through
subsequent replications of the technology;
(C) the degree to which the proposed project, and
anticipated replications of the technology used in the
project, may provide substitutes for natural gas on a
cost-effective basis compared to other applications
proposed by eligible entities;
(D) the technical and economic feasibility of the
project;
(E) the financial viability of the project;
(F) an expectation that private equity in the
project will equal at least 20 percent of total plant
investment;
(G) the likelihood that replications of the
technology will create significant markets for domestic
vendors of the technology;
(H) the diversity of the technological approaches
and regional locations of the projects selected, except
that, unless no such project is proposed by an eligible
entity--
(i) at least 1 of the industrial
gasification projects selected shall use coal;
and
(ii) at least 1 of the industrial
gasification projects selected shall use
biomass;
(I) a determination that the plant will be carbon-
capture ready, as applicable; and
(J) any other criteria the Secretary publishes in a
solicitation to achieve the purpose of this section.
(2) Factors of additional weight.--In evaluating a project
that gasifies coal or petroleum residue, the Secretary shall
give additional weight to a project proposal that contains
separation, sequestration, or use of carbon or other gases in
the process waste stream that have a radiative index greater
than or equal to that of carbon dioxide.
(e) Financial Assistance.--
(1) Types of assistance.--
(A) In general.--In carrying out this section, the
Secretary may award to an eligible entity selected by
the Secretary--
(i) a loan;
(ii) a loan guarantee;
(iii) price supports; or
(iv) goods the purchase prices of which are
incurred by the Secretary.
(B) Loans and loan guarantees.--
(i) In general.--A loan or loan guarantee
provided under clause (i) or (ii) of
subparagraph (A)--
(I) shall not exceed 80 percent of
the total project investment; and
(II) shall be backed by the full
faith and credit of the United States.
(ii) Non-federal equity investment.--An
eligible entity shall--
(I) provide a non-Federal equity
investment equal to not less than 20
percent of the total project
investment; and
(II) apply the non-Federal equity
investment to the long-term debt
obligations of the project, which--
(aa) may, at the discretion
of the Secretary, be
nonrecourse; and
(bb) shall have a term not
greater than 30 years.
(2) Eligibility for more than 1 type of assistance.--
(A) Limitations.--The Secretary may provide, or
certify an eligible entity to receive, any financial
incentive described in paragraph (1) for a project if
the aggregate value of incentives made available to an
applicant (as determined by the Congressional Budget
Office) does not exceed--
(i) $175,000,000 for each incentive, as of
the date of enactment of this Act; and
(ii) 20 percent of the total capital cost
of the project.
(B) Contracts between the Secretary and project
sponsors.--A contract between the Secretary and a
project sponsor regarding an industrial gasification
project shall not count against the limitations
described in subparagraph (A).
(f) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary to carry out this section $2,000,000,000, to
remain available until expended.
(2) Schedule.--The amount authorized to be appropriated
under paragraph (1) shall be available to the Secretary on the
following schedule:
(A) For fiscal year 2006, $400,000,000.
(B) For fiscal year 2007, $300,000,000.
(C) For fiscal year 2008, $300,000,000.
(D) For fiscal year 2009, $300,000,000.
(E) For fiscal year 2010, $200,000,000.
(F) For fiscal year 2011, $125,000,000.
(G) For fiscal year 2012, $100,000,000.
(H) For fiscal year 2013, $75,000,000.
(I) For fiscal year 2014, $50,000,000.
(J) For fiscal year 2015, $50,000,000.
SEC. 114. CARBON CAPTURE AND SEQUESTRATION ENERGY EFFICIENCY RESEARCH
AND DEVELOPMENT.
(a) Research and Development Program.--The Secretary shall carry
out a program of research and development to improve the efficiency and
reduce the capital cost of processes used to capture and sequester
carbon dioxide that is produced by coal-fired power plants to reduce
the cost of carbon capture and sequestration.
(b) Grants and Cooperative Agreements.--In carrying out the program
under subsection (a), the Secretary may make any grant or enter into
any cooperative agreement that the Secretary determines to be
appropriate, in accordance with the Federal Nonnuclear Energy Research
and Development Act of 1974 (42 U.S.C. 5901 et seq.) or any other
Federal law.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
TITLE II--PRODUCTION
SEC. 201. GAS ONLY LEASES.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(p)(1) The Secretary may issue a lease under this section
beginning at the 2007-2012 plan period that authorizes development and
production only of gas and associated condensate in accordance with
regulations issued under paragraph (2).
``(2) Before July 1, 2006, the Secretary shall issue regulations
that, for purposes of this section--
``(A) define what constitutes gas, condensate, and oil;
``(B) establish the rights and obligations of a lessee
regarding condensate produced in association with gas;
``(C) prescribe procedures and requirements that the lessee
shall follow if the lessee discovers oil deposits in the course
of exploration or development; and
``(D) establish any other requirements for gas-only leases
that the Secretary determines are appropriate.
``(3) At the request of a lessee or the producing State, the
Secretary may restrict development under such a lease to gas and
associated condensate.
``(4) Any Federal law (including a regulation) that applies to an
oil and gas lease on the Outer Continental Shelf applies to a gas-only
lease issued under this section.''.
SEC. 202. EASTERN GULF OF MEXICO.
Section 4(a)(2) of the Outer Continental Shelf Lands Act (43 U.S.C.
1333(a)(2)) is amended--
(1) by inserting ``(i)'' after ``(A)'';
(2) in the first sentence--
(A) by striking ``President'' and inserting
``Secretary''; and
(B) by inserting before the period at the end the
following: ``not later than 270 days after the date of
enactment of the Natural Gas Price Reduction Act of
2005''; and
(3) by adding at the end the following:
``(ii) For the purpose solely of determining boundaries for
offshore oil and gas development and revenue sharing, the Secretary
shall delimit the lateral boundaries between coastal States, to the
extent of the exclusive economic zone of the United States, in
accordance with--
``(I) any judicial decree or interstate compact delimiting
lateral offshore boundaries between coastal States;
``(II) any principles of domestic and international law
governing the delimitation of lateral offshore boundaries; and
``(III) to the maximum extent practicable, existing lease
boundaries and block lines based on the official protraction
diagrams of the Secretary.
``(iii) Not later than December 31, 2007, the Secretary shall amend
any 5-year leasing program relating to the outer Continental Shelf and
offer for gas, or oil and gas, leasing the unleased blocks in the Lease
Sale 181 area if the lease sale--
``(I) is not in the State of Florida; and
``(II) does not conflict with training or operations of the
United States military.
``(iv) If a lease sale under clause (iii) is located more than 20
miles off the coast of the State of Alabama and the State of Florida,
the lease shall be considered by the Secretary of Commerce and the
Secretary of the Interior to be necessary to the interest of national
security for purposes of the Coastal Zone Management Act (16 U.S.C.
1451 et seq.).''.
SEC. 203. REVIEW OF STATE REQUESTS TO EXAMINE OCS ENERGY AREAS.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) is amended by adding at the end the following:
``(i)(1) In this subsection:
``(A) The term `lease' includes a gas-only lease under
section 8.
``(B) The term `moratorium area' means--
``(i) any area withdrawn from disposition by
leasing by the `Memorandum on Withdrawal of Certain
Areas of the United States Outer Continental Shelf from
Leasing Disposition', from 34 Weekly Comp. Pres. Doc.
1111, dated June 12, 1998; and
``(ii) any area of the outer Continental Shelf as
to which Congress has denied the use of appropriated
funds or other means for preleasing, leasing, or
related activities.
``(2)(A) A moratorium on gas, or oil and gas, leasing on the outer
Continental Shelf shall be effective with respect to the area off the
coast of a State only if the Governor of the State consents to the
moratorium.
``(B) At any time, the Governor of an affected State, acting on
behalf of the State, may request the Secretary to provide a current
estimate of proven and potential gas, or oil and gas, resources in any
moratorium area (or any part of the area the Governor identifies)
adjacent, or lying seaward of the coastline, to that State.
``(C) Not later than the date that is 45 days after a Governor of a
State requests an estimate under subparagraph (B), the Secretary shall
provide--
``(i) a delimitation of the lateral boundaries between the
coastal States in accordance with section 4(a)(2);
``(ii) a current inventory of proven and potential gas, or
oil and gas, resources in any moratorium areas in the State, as
requested by the Governor; and
``(iii) an explanation of the planning processes that could
lead to the leasing, exploration, development, and production
of the gas, or oil and gas, resources within the area
identified.
``(3)(A) On consideration of the information received from the
Secretary, the Governor (acting on behalf of the State of the Governor)
may decide--
``(i) not to consent to a moratorium on gas, or oil and
gas, leasing on the outer Continental Shelf off the coast of
the State of the Governor; or
``(ii) to repeal any restriction preventing spending
appropriated funds for preleasing, leasing, and related
activities as to the area identified in the request of the
Governor.
``(B) If the Governor makes a decision under subparagraph (A), the
Governor shall submit to the President, the Secretary, and Congress a
notification of the decision, including a description of--
``(i) the area on which a moratorium on gas, or oil and
gas, leasing would have been imposed; and
``(ii) any restriction repealed under subparagraph (A)(ii).
``(C) On receipt of notification by a Governor under subparagraph
(B), the Secretary shall--
``(i) treat the notification as a proposed revision to the
leasing program maintained under this section; and
``(ii) give expedited consideration to the proposed
revision.
``(D) For purposes of title III of the Coastal Zone Management Act
of 1972 (16 U.S.C. 1451 et seq.), any activity relating to leasing and
subsequent production in an area restored to consideration for gas, or
oil and gas, leasing under this paragraph shall--
``(i) if the leased area is located more than 20 miles
offshore of an adjacent State, be considered by the Secretary
as necessary to the interest of national security and be
carried out notwithstanding the objection of a State to a
consistency certification under that Act; or
``(ii) if the leased area is located not greater than 20
miles offshore of an adjacent State, be subject to section
307(c) of the Coastal Zone Management Act (16 U.S.C. 1456(c)).
``(E) An activity under subparagraph (C)(i) shall be carried out in
accordance with any applicable approved State management program, to
the maximum extent practicable.
``(4)(A)(i) If the Governor of a State requests the President to
allow gas, or oil or natural gas, leasing in the moratorium area and
the President allows that leasing, the State shall, without further
appropriation or action, receive 100 percent of any bonus bid paid for
leasing rights in the area.
``(ii) The payments under clause (i) shall end not later than the
earlier of--
``(I) the date that is 5 years after the first lease sale
in the area; or
``(II) the date on which production begins in the area.
``(B)(i) On the commencement of production in an area under this
subsection, the State shall share in any qualified revenues of the
production without further action or appropriation in accordance with
section 32(b).
``(ii) The share of the State under clause (i) shall be not less
than 12.5 percent of the total qualified revenues of the production.
``(iii) For the purposes of section 32--
``(I) the State shall be considered to be a coastal
producing State; and
``(II) the share of the State under clause (i) shall be
considered to be qualified revenues.
``(C) After making distributions in accordance with subparagraphs
(A) and (B), and in accordance with section 31, the Secretary shall,
without further appropriation or action, distribute a conservation
royalty of at least 12.5 percent of any remaining qualified revenues
from an area leased under this section in equal amounts, not to exceed
$1,250,000,000 for any year, to--
``(I) the Land and Water Conservation Fund to provide
financial assistance to the Federal Government under section 5
of the Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l-7);
``(II) the Land and Water Conservation Fund to provide
financial assistance to States under section 6 of that Act (16
U.S.C. 460l-8); and
``(III) the wildlife restoration fund established under
section 3 of the Pittman-Robertson Wildlife Restoration Act (16
U.S.C. 669b).
``(4) The State shall be entitled to any revenues that a coastal
State would be entitled to receive under section 8(g).
``(5) This subsection shall not apply to any area designated as a
national marine sanctuary or a national wildlife refuge.''.
SEC. 204. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
(a) In General.--For all tracts located in water depths of greater
than 400 meters in the Western and Central Planning Area of the Gulf of
Mexico (including the portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude) any oil or gas lease sale under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring within 5
years after the date of enactment of this Act shall use the bidding
system authorized in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(1)(H)), except that the suspension of
royalties shall be set at a volume of not less than--
(1) 5,000,000 barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters; and
(3) 12,000,000 barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
(b) Limitation.--The Secretary of the Interior may place
limitations on the suspension of royalty relief granted based on market
price.
SEC. 205. COASTAL IMPACT ASSISTANCE PROGRAM.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end the following:
``SEC. 32. COASTAL IMPACT ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Coastal political subdivision.--The term `coastal
political subdivision' means a political subdivision of a
coastal State, any part of which--
``(A) is within the coastal zone (as defined in
section 304 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1453)) of the State; and
``(B) is not more than 200 miles from the
geographic center of a leased tract.
``(2) Coastal population.--The term `coastal population'
means the population, as determined by the most recent official
data of the Census Bureau, of each political subdivision, any
part of which lies within the designated coastal boundary of a
State (as defined in a coastal zone management program of the
State under the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.)).
``(3) Coastal state.--The term `coastal State' has the
meaning given the term in section 304 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1453).
``(4) Coastline.--The term `coastline' has the meaning
given the term in section 2 of the Submerged Lands Act (43
U.S.C. 1301).
``(5) Distance.--The term `distance' means the minimum
great circle distance, measured in statute miles.
``(6) Leased tract.--The term `leased tract' means a tract
that is subject to a lease under section 6 or 8 for the purpose
of drilling for, developing, and producing oil or natural gas
resources.
``(7) Political subdivision.--The term `political
subdivision' means the local political jurisdiction immediately
below the level of State government, including counties,
parishes, and boroughs.
``(8) Producing state.--
``(A) In general.--The term `producing State' means
a coastal State with a coastal seaward boundary within
200 miles of the geographic center of a leased tract.
``(B) Exclusion.--The term `producing State' does
not include a leased tract or portion of a leased tract
that is located in a geographic area subject to a
leasing moratorium on January 1, 2005, unless the lease
was in production on that date.
``(9) Qualified outer continental shelf revenues.--
``(A) In general.--The term `qualified Outer
Continental Shelf revenues' means all amounts received
by the United States from each leased tract or portion
of a leased tract--
``(i) lying--
``(I) seaward of the zone covered
by section 8(g); or
``(II) within the zone covered by
section 8(g), but to which section 8(g)
does not apply; and
``(ii) the geographic center of which lies
within 200 miles of any part of the coastline
of any coastal State.
``(B) Inclusions.--The term `qualified Outer
Continental Shelf revenues' includes bonus bids, rents,
royalties (including payments for royalty taken in kind
and sold), net profit share payments, and related late-
payment interest from natural gas and oil leases issued
under this Act.
``(C) Exclusion.--The term `qualified Outer
Continental Shelf revenues' does not include any
revenues (other than revenues received under section
18(i)) from a leased tract or portion of a leased tract
that is located in a geographic area subject to a
leasing moratorium on January 1, 2005, unless the lease
was in production on that date.
``(b) Payments to Producing States and Coastal Political
Subdivisions.--
``(1) In general.--For each of fiscal years 2006 through
2011, the Secretary shall, without further appropriation,
disburse an amount equal to not more than 12.5 percent of
qualified outer Continental Shelf revenues among producing
States and coastal political subdivisions, in accordance with
this section.
``(2) Disbursement.--In each fiscal year, the Secretary
shall, without further appropriation, disburse to each
producing State for which the Secretary has approved a plan
under subsection (c), and to coastal political subdivisions
under paragraph (4), the funds allocated to the producing State
or coastal political subdivision under this section for the
fiscal year.
``(3) Allocation among producing states.--
``(A) In general.--The transferred amount shall be
allocated to each producing State based on the ratio
that--
``(i) the amount of qualified outer
Continental Shelf revenues generated off the
coastline of the producing State; bears to
``(ii) the amount of qualified outer
Continental Shelf revenues generated off the
coastline of all producing States.
``(B) Qualified outer continental shelf revenues.--
``(i) Fiscal years 2006 through 2008.--For
each of fiscal years 2006 through 2008, a
calculation of a payment under this subsection
shall be based on qualified outer Continental
Shelf revenues received during fiscal year
2005.
``(ii) Fiscal years 2009 through 2011.--For
each of fiscal years 2009 through 2011, a
calculation of a payment under this subsection
shall be based on qualified outer Continental
Shelf revenues received during fiscal year
2008.
``(C) Multiple producing states.--If more than 1
producing State is located within 200 miles of any
portion of a leased tract, the amount allocated to each
producing State for the leased tract shall be inversely
proportional to the distance between--
``(i) the nearest point on the coastline of
the producing State; and
``(ii) the geographic center of the leased
tract.
``(D) Minimum allocation.--An amount allocated to a
producing State under this paragraph shall be not less
than 1 percent of the transferred amount.
``(4) Payments to coastal political subdivisions.--
``(A) In general.--The Secretary shall pay 35
percent of the amount allocated under paragraph (3) to
the coastal political subdivisions in the producing
State.
``(B) Formula.--Of the amount paid by the Secretary
to coastal political subdivisions under subparagraph
(A)--
``(i) 25 percent shall be allocated to each
coastal political subdivision in the proportion
that--
``(I) the coastal population of the
coastal political subdivision; bears to
``(II) the coastal population of
all coastal political subdivisions in
the producing State;
``(ii) 25 percent shall be allocated to
each coastal political subdivision in the
proportion that--
``(I) the number of miles of
coastline of the coastal political
subdivision; bears to
``(II) the number of miles of
coastline of all coastal political
subdivisions in the producing State;
and
``(iii) 50 percent shall be allocated in
amounts that are inversely proportional to the
respective distances between the points in each
coastal political subdivision that are closest
to the geographic center of each leased tract,
as determined by the Secretary.
``(C) Exception for louisiana.--For the purposes of
subparagraph (B)(ii), the coastline for coastal
political subdivisions in the State of Louisiana
without a coastline shall be the average length of the
coastline of all other coastal political subdivisions
in the State of Louisiana.
``(D) Exception for alaska.--For the purposes of
carrying out subparagraph (B)(iii) in the State of
Alaska, the amount allocated shall be divided equally
among the 2 coastal political subdivisions that are
closest to the geographic center of a leased tract.
``(E) Exclusion of certain leased tracts.--For
purposes of subparagraph (B)(iii), a leased tract or
portion of a leased tract shall be excluded if the
tract or portion of a leased tract is located in a
geographic area subject to a leasing moratorium on
January 1, 2005, unless the lease was in production on
that date.
``(5) No approved plan.--
``(A) In general.--Subject to subparagraph (B) and
except as provided in subparagraph (C), if any amount
allocated to a producing State or coastal political
subdivision under paragraph (3) or (4) is not disbursed
because the producing State does not have in effect a
plan that has been approved by the Secretary under
subsection (c), the Secretary shall allocate the
undisbursed amount equally among all other producing
States.
``(B) Retention of allocation.--The Secretary shall
hold in escrow an undisbursed amount described in
subparagraph (A) until the date that the final appeal
regarding the disapproval of a plan submitted under
subsection (c) is decided.
``(C) Waiver.--The Secretary may waive the
requirements of subparagraph (A) with respect to an
allocated share of a producing State and hold the
allocable share in escrow if the Secretary determines
that the producing State is making a good faith effort
to develop and submit, or update, a plan in accordance
with subsection (c).
``(c) Coastal Impact Assistance Plan.--
``(1) Submission of state plan.--
``(A) In general.--Not later than July 1, 2008, the
Governor of a producing State shall submit to the
Secretary a coastal impact assistance plan.
``(B) Public participation.--In carrying out
subparagraph (A), the Governor shall solicit local
input and provide for public participation in the
development of the plan.
``(2) Approval.--
``(A) In general.--The Secretary shall approve a
plan of a producing State submitted under paragraph (1)
before disbursing any amount to the producing State, or
to a coastal political subdivision located in the
producing State, under this section.
``(B) Components.--The Secretary shall approve a
plan submitted under paragraph (1) if--
``(i) the Secretary determines that the
plan is consistent with the uses described in
subsection (d); and
``(ii) the plan contains--
``(I) the name of the State agency
that will have the authority to
represent and act on behalf of the
producing State in dealing with the
Secretary for purposes of this section;
``(II) a program for the
implementation of the plan that
describes how the amounts provided
under this section to the producing
State will be used;
``(III) for each coastal political
subdivision that receives an amount
under this section--
``(aa) the name of a
contact person; and
``(bb) a description of how
the coastal political
subdivision will use amounts
provided under this section;
``(IV) a certification by the
Governor that ample opportunity has
been provided for public participation
in the development and revision of the
plan; and
``(V) a description of measures
that will be taken to determine the
availability of assistance from other
relevant Federal resources and
programs.
``(3) Amendment to a plan.--Any amendment to a plan
submitted under paragraph (1) shall be--
``(A) developed in accordance with this subsection;
and
``(B) submitted to the Secretary for approval or
disapproval under paragraph (4).
``(4) Procedure.--Except as provided in subparagraph (B),
not later than 90 days after the date on which a plan or
amendment to a plan is submitted under paragraph (1) or (3),
the Secretary shall approve or disapprove the plan or
amendment.
``(d) Authorized Uses.--
``(1) In general.--A producing State or coastal political
subdivision shall use any amount received under this section,
including any amount deposited in a trust fund that is
administered by the State or coastal political subdivision and
dedicated to a use consistent with this section, in accordance
with all applicable Federal and State law, only for 1 or more
of the following purposes:
``(A) Projects and activities for the conservation,
protection, or restoration of coastal areas, including
wetland.
``(B) Mitigation of damage to fish, wildlife, or
natural resources.
``(C) Planning assistance and the administrative
costs of complying with this section.
``(D) Implementation of a federally-approved
marine, coastal, or comprehensive conservation
management plan.
``(E) Mitigation of the impact of outer Continental
Shelf activities through funding of onshore
infrastructure, education, health care, and public
service needs.
``(2) Compliance with authorized uses.--If the Secretary
determines that any expenditure made by a producing State or
coastal political subdivision is not consistent with this
subsection, the Secretary shall not disburse any additional
amount under this section to the producing State or the coastal
political subdivision until all amounts obligated for
unauthorized uses have been repaid or reobligated for
authorized uses.''.
SEC. 206. ROCKY MOUNTAIN GAS PRODUCTION.
Section 1421(d) of the Safe Drinking Water Act (42 U.S.C. 300h(d)
is amended by striking paragraph (1) and inserting the following:
``(1) Underground injection.--
``(A) In general.--The term `underground injection'
means the subsurface emplacement of fluids by well
injection.
``(B) Exclusions.--The term `underground injection'
excludes--
``(i) the underground injection of natural
gas for purposes of storage; and
``(ii) the underground injection of fluids
or propping agents pursuant to hydraulic
fracturing operations related to an oil or gas
production activity.''.
SEC. 207. GAS METHANE RESEARCH.
(a) Research Center.--Section 3(b)(1) of the Methane Hydrate
Research and Development Act of 2000 (30 U.S.C. 1902 note) is amended--
(1) in subparagraph (F), by striking ``and'' at the end;
(2) in subparagraph (G), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(H) establish a Virginia Beach Methane Hydrates
Research Center in Virginia Beach, Virginia.''.
(b) Authorization of Appropriations.--Section 5 of the Methane
Hydrate Research and Development Act of 2000 (30 U.S.C. 1902 note) is
amended to read as follows:
``SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to the Secretary of Energy
to carry out this Act $50,000,000 for each of fiscal years 2006 through
2009, to remain available until expended.''.
(c) Sunset.--Section 6 of the Methane Hydrate Research and
Development Act of 2000 (30 U.S.C. 1902 note) is amended by striking
``2005'' and inserting ``2009''.
SEC. 208. ALASKA NATURAL GAS PIPELINE ACT.
The Alaska Natural Gas Pipeline Act (15 U.S.C. 720 et seq.) is
amended--
(1) in section 103 (15 U.S.C. 720a), by adding at the end
the following:
``(j) Report.--Not later than the date that is 180 days after the
date of enactment of the Natural Gas Price Reduction Act of 2005 and
every 180 days thereafter until the Alaska natural gas pipeline begins
operation, the Commission shall submit to Congress a report describing
the progress made in licensing and constructing such pipeline and any
issues impeding that progress.''; and
(2) in section 107(a) (15 (U.S.C. 720e(a)), by striking
paragraph (3) and inserting the following:
``(3) the validity of any determination, permit, approval,
authorization, review, or other such action taken under any
provision of law (including subchapter II of chapter 5, and
chapter 7, of title 5, United States Code (commonly known as
the Administrative Procedure Act), the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.), the National Environmental
Policy Act of 1969 (42 U.S.C. 4231 et seq.), and the National
Historic Preservation Act (16 U.S.C. 470 et seq.)) that relates
to a gas transportation project under section 103.''.
SEC. 209. GAS HYDRATE PRODUCTION INCENTIVES.
(a) Purpose.--The purpose of this section is to promote natural gas
production from the abundant natural gas hydrate resources on the outer
Continental Shelf and Federal land in Alaska by providing royalty
incentives for the production.
(b) Suspension of Royalties.--
(1) Definitions.--In this subsection:
(A) Eligible lease.--The term ``eligible lease''
means a lease--
(i) that is issued under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.);
(ii) that is issued before January 1, 2016;
and
(iii) in the case of a lease of natural
gas, production from the gas hydrate resource
under that begins not later than December 31,
2017.
(B) Gas hydrate resource.--The term ``gas hydrate
resource'' includes--
(i) the natural gas content of a gas
hydrate within the hydrate stability zone; and
(ii) free natural gas trapped by and
beneath the hydrate stability zone.
(2) Suspension of royalties.--
(A) In general.--The Secretary of the Interior
shall suspend royalties under this section for gas
hydrate resources with a suspension volume of not less
than 50,000,000,000 cubic feet of natural gas produced
from the resource per square mile of the leased tract.
(B) Size of leased tracts.--The minimum suspension
volume under this section for a leased tract that is
smaller or larger than 9 square miles shall be adjusted
proportionally.
(3) Effect of suspension.--The suspension of royalties
under this section shall be in addition to royalty relief under
any law that does not grant a gas hydrate production incentive.
(c) Rulemaking.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall complete any rulemaking necessary to
carry out this section.
SEC. 210. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.
Section 502 of the Federal Water Pollution Control Act (33 U.S.C.
1362) is amended by adding at the end the following:
``(24) Oil and gas exploration and production, processing,
or treatment operations or transmission facilities.--The term
`oil and gas exploration and production, processing, or
treatment operations or transmission facilities' means all
field activities or operations associated with oil or gas
exploration, production, processing, or treatment operations,
or with oil or gas transmission facilities, including
activities necessary to prepare a site for drilling and for the
movement and placement of drilling equipment, whether or not
such field activities or operations may be considered to be
construction activities.''.
SEC. 211. MARGINAL PROPERTY PRODUCTION INCENTIVES.
(a) Definition of Marginal Property.--
(1) In general.--Until the Secretary of the Interior
promulgates regulations under subsection (e) that prescribe a
different definition, in this section the term ``marginal
property'' means an onshore unit, communitization agreement, or
lease not within a unit or communitization agreement, that
produces on average the combined equivalent of less than 15
barrels of oil per well per day or 90 million British thermal
units of gas per well per day calculated based on the average
over the 3 most recent production months, including only wells
that produce on more than half of the days during those 3
production months.
(b) Conditions for Reduction of Royalty Rate.--Until the Secretary
of the Interior promulgates regulations under subsection (e) that
prescribe different thresholds or standards, the Secretary of the
Interior shall reduce the royalty rate on--
(1) oil production from marginal properties as described in
subsection (c) if the spot price of West Texas Intermediate
crude oil at Cushing, Oklahoma, is, on average, less than $15
per barrel for 90 consecutive trading days; and
(2) gas production from marginal properties as described in
subsection (c) if the spot price of natural gas delivered at
Henry Hub, Louisiana, is, on average, less than $2 per million
British thermal units for 90 consecutive trading days.
(c) Reduced Royalty Rate.--
(1) In general.--When a marginal property meets the
conditions described in subsection (b), the royalty rate shall
be the lesser of--
(A) 5 percent; or
(B) the rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) Period of effectiveness.--The reduced royalty rate
under this subsection shall be effective beginning on the first
day of the production month following the date on which the
applicable condition specified in subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate described
in subsection (c)(1)(A) shall terminate--
(1) with respect to oil production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of West Texas Intermediate crude
oil at Cushing, Oklahoma, on average, exceeds $15 per
barrel for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property; and
(2) with respect to gas production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of natural gas delivered at
Henry Hub, Louisiana, on average, exceeds $2 per
million British thermal units for 90 consecutive
trading days; or
(B) the property no longer qualifies as a marginal
property.
(e) Regulations Prescribing Different Relief.--
(1) Discretionary regulations.--The Secretary of the
Interior may by regulation prescribe different parameters,
standards, and requirements for, and a different degree or
extent of royalty relief for, marginal properties in lieu of
those prescribed in subsections (a) through (d).
(2) Mandatory regulations.--Not later than 18 months after
the date of enactment of this Act, the Secretary of the
Interior shall by regulation--
(A) prescribe standards and requirements for, and
the extent of royalty relief for, marginal properties
for oil and gas leases on the Outer Continental Shelf;
and
(B) define what constitutes a marginal property on
the Outer Continental Shelf for the purposes of this
section.
(3) Considerations.--In promulgating regulations under this
subsection, the Secretary of the Interior may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and the
effects of those provisions on production economics;
(E) other royalty relief programs;
(F) regional differences in average wellhead
prices;
(G) national energy security issues; and
(H) other relevant matters.
(f) Savings Provision.--Nothing in this section prevents a lessee
from receiving royalty relief or a royalty reduction pursuant to any
other law (including a regulation) that provides more relief than the
amounts provided by this section.
SEC. 212. EFFICIENT GOVERNMENT PROCESSING OF PERMIT APPLICATIONS.
(a) Executive Orders Codified.--Executive Orders numbered 13211 and
13212, issued on May 18, 2001 (66 Fed. Reg. 28,355; 66 Fed. Reg.
28,357), are enacted into law.
(b) Processing Performance Report.--
(1) In general.--Not later than December 31, 2006, and
annually thereafter, the Secretary of Energy shall submit to
Congress a report evaluating the performance of the task force
established under Executive Order number 13212 (66 Fed. Reg.
28,357) in carrying out the duties of the task force.
(2) Inclusion.--The report described in paragraph (1) shall
include--
(A) the number of permits processed by the task
force in the preceding year;
(B) the average time required by the task force to
take a final action;
(C) a description of any environmental variance
issued by the task force;
(D) an identification of any impediment to
efficient processing of permits by the task force; and
(E) any incentive created to reduce processing time
of the task force.
SEC. 213. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY
DETERMINATION.
(a) In General.--Section 319 of the Coastal Zone Management Act of
1972 (16 U.S.C. 1465) is amended to read as follows:
``appeals to the secretary
``Sec. 319. (a) Notice.--The Secretary shall publish an initial
notice in the Federal Register not later than 30 days after the date of
the filing of any appeal to the Secretary of a consistency
determination under section 307.
``(b) Closure of Record.--(1) Not later than the end of the 120-day
period beginning on the date of publication of an initial notice under
subsection (a)--
``(A) the Secretary shall receive no more filings on the
appeal; and
``(B) the administrative record regarding the appeal shall
be closed.
``(2) On the closure of the administrative record, the Secretary
shall publish a notice that the administrative record has been closed.
``(c) Deadline for Decision.--Not later than 120 days after the
closure of the administrative record, the Secretary shall issue a
decision in any appeal filed under section 307.
``(d) Application.--This section applies to--
``(1) any appeal initiated by the Secretary; and
``(2) any appeal filed by an applicant.''.
(b) Application.--Section 319(a) of the Coastal Zone Management Act
of 1972 (as amended by this subsection (a)) shall not apply to an
appeal initiated or filed before the date of enactment of this Act.
(c) Closure of Record for Appeal Filed Before Date of Enactment.--
Notwithstanding section 319(b)(1) of the Coastal Zone Management Act of
1972 (as amended by subsection (a)), in the case of an appeal of a
consistency determination under section 307 of that Act initiated or
filed before the date of enactment of this Act--
(1) the Secretary of Commerce shall receive no more filings
on the appeal; and
(2) not later than 120 days after the date of enactment of
this Act, the administrative record regarding the appeal shall
be closed.
SEC. 214. OUTER CONTINENTAL SHELF PROVISIONS.
(a) Storage on the Outer Continental Shelf.--Section 5(a)(5) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1334(a)(5)) is amended by
inserting ``from any source'' after ``oil and gas''.
(b) Deepwater Projects.--Section 6 of the Deepwater Port Act of
1974 (33 U.S.C. 1505) is amended by adding at the end the following:
``(d) In carrying out section 5(f)--
``(1) to the extent that other Federal agencies have
prepared environmental impact statements, are conducting
studies, or are monitoring the affected human, marine, or
coastal environment, the Secretary may use the information
derived from those activities in lieu of directly conducting
the activities; and
``(2) the Secretary may use information obtained from any
State or local government or from any person.''.
(c) Natural Gas Defined.--Section 3 of the Deepwater Port Act of
1974 (33 U.S.C. 1502) is amended by striking paragraph (13) and
inserting the following:
``(13) `natural gas' means--
``(A) natural gas unmixed; or
``(B) any mixture of natural or artificial gas,
including compressed or liquefied natural gas, natural
gas liquids, liquefied petroleum gas, and condensate
recovered from natural gas;''.
SEC. 215. OFFICE OF FEDERAL ENERGY PROJECT COORDINATION.
(a) Establishment.--The President shall establish the Office of
Federal Energy Project Coordination (referred to in this section as the
``Office'') within the Executive Office of the President in the same
manner and with the same mission as the White House Energy Projects
Task Force established by Executive Order No. 13212 (42 U.S.C. 13201
note).
(b) Staff.--The Office shall be staffed by functional experts from
relevant Federal agencies on a nonreimbursable basis to carry out the
mission of the Office.
(c) Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Office
shall submit to Congress a report that describes any activity
carried out under this section to coordinate and expedite
Federal decisions on energy projects.
(2) Inclusions.--The report shall include a description
of--
(A) any progress made toward improving the Federal
decisionmaking process; and
(B) any additional recommendation of the Office
relating to a change required to establish a more
effective and efficient Federal permitting process.
SEC. 216. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.
(a) Review of Onshore Oil and Gas Leasing Practices.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture with respect to
National Forest System land under the jurisdiction of the
Department of Agriculture, shall perform an internal review of
current Federal onshore oil and gas leasing and permitting
practices.
(2) Inclusions.--The review shall include the process for--
(A) accepting or rejecting an offer to lease;
(B) an administrative appeal of a decision or order
of an officer or employee of the Bureau of Land
Management with respect to a Federal oil or gas lease;
(C) considering a surface use plan of operation,
including the timeframe during which a plan shall be
considered and any recommendation of the Secretary of
the Interior for improving and expediting the process;
and
(D) identifying a stipulation to address a site-
specific concern or condition, including a stipulation
relating to an environment or resource use conflict.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of the Interior and the Secretary of
Agriculture shall submit to Congress a report that describes--
(1) any action taken under section 3 of Executive Order No.
13212 (42 U.S.C. 13201 note); and
(2) any action taken relating to, or any plan to improve,
the Federal onshore oil and gas leasing program.
SEC. 217. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.
(a) Timely Action on Leases and Permits.--To ensure timely action
relating to oil and gas leases and applications for permits to drill on
land otherwise available for leasing, the Secretary of the Interior
shall--
(1) ensure expeditious compliance with section 102(2)(C) of
the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C));
(2) improve consultation and coordination with the States
and the public; and
(3) improve the collection, storage, and retrieval of
information relating to a leasing activity.
(b) Best Management Practices.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop and
implement best management practices to--
(A) improve the administration of the onshore oil
and gas leasing program under the Mineral Leasing Act
(30 U.S.C. 181 et seq.); and
(B) ensure timely action on any oil or gas lease or
application for a permit to drill on land otherwise
available for leasing.
(2) Considerations.--In developing the best management
practices under paragraph (1), the Secretary shall consider any
recommendations from the review under section 216.
(3) Regulations.--Not later than 180 days after the
development of best management practices under paragraph (1),
the Secretary shall publish, for public comment, proposed
regulations that set forth specific timeframes for processing
leases and applications in accordance with the practices,
including deadlines for--
(A) approving or disapproving resource management
plans and related documents, lease applications, and
surface use plans; and
(B) related administrative appeals.
(c) Improved Enforcement.--The Secretary shall improve inspection
and enforcement of oil and gas activities, including enforcement of
terms and conditions in permits to drill.
(d) Authorization of Appropriations.--In addition to amounts
authorized to be appropriated to carry out section 17 of the Mineral
Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to
the Secretary for each of fiscal years 2006 through 2009--
(1) $40,000,000 to carry out subsections (a) and (b); and
(2) $20,000,000 to carry out subsection (c).
SEC. 218. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the Secretary
of Agriculture shall enter into a memorandum of understanding regarding
oil and gas leasing on--
(1) public land under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System land under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall include
provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of oil and gas lease
applications, surface use plans of operation, and applications
for permits to drill, including steps for processing surface
use plans and applications for permits to drill consistent with
the timelines established by the amendment made by section 220;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance efforts;
and
(3) ensure that any stipulation in a lease is--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to protect the
resource for which the stipulation is applied.
(c) Data Retrieval System.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall establish a joint data retrieval
system to--
(A) track applications and formal requests made in
accordance with the Federal onshore oil and gas leasing
program; and
(B) provide information regarding the status of an
application or request in the Department of the
Interior and the Department of Agriculture.
(2) Resource mapping.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall establish a joint
Geographic Information System mapping system to--
(A) track surface resource values to aid in
resource management; and
(B) process surface use plans of operation and
applications for permits to drill.
SEC. 219. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.
(a) Definitions.--In this section:
(1) Memorandum of understanding.--The term ``memorandum of
understanding'' means the memorandum of understanding entered
into under subsection (c).
(2) Pilot project.--The term ``pilot project'' means the
Federal permit streamline pilot project established under
subsection (b).
(3) Pilot project office.--The term ``pilot project
office'' means each of the following field offices of the
Bureau of Land Management:
(A) Rawlins, Wyoming.
(B) Buffalo, Wyoming.
(C) Miles City, Montana
(D) Farmington, New Mexico.
(E) Carlsbad, New Mexico.
(F) Glenwood Springs, Colorado.
(G) Vernal, Utah.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Establishment.--The Secretary shall establish a Federal permit
streamlining pilot project.
(c) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding with the Secretary of Agriculture,
the Administrator of the Environmental Protection Agency, and
the Chief of Engineers of the Corps of Engineers to carry out
the pilot project.
(2) State participation.--The Secretary may request that
the Governors of Wyoming, Montana, Colorado, Utah, and New
Mexico enter into the memorandum of understanding.
(d) Pilot Project Personnel.--
(1) Designation of initial personnel.--
(A) In general.--Not later than 30 days after the
date on which the memorandum of understanding is
entered into under subsection (c), each of the Federal
signatories to the memorandum of understanding referred
to in subsection (c)(1) shall assign to each of the
pilot project offices, on a nonreimbursable basis, an
employee who has expertise in the regulatory issues
relating to the office in which the employee is
employed, including, as applicable, the areas of
expertise described in subparagraph (B).
(B) Areas of expertise.--The areas of expertise
referred to in subparagraph (A) include expertise in--
(i) the consultations and the preparation
of biological opinions under section 7 of the
Endangered Species Act of 1973 (16 U.S.C.
1536);
(ii) permits under section 404 of Federal
Water Pollution Control Act (33 U.S.C. 1344);
(iii) regulatory matters under the Clean
Air Act (42 U.S.C. 7401 et seq.);
(iv) planning under the National Forest
Management Act of 1976 (16 U.S.C. 472a et
seq.); and
(v) the preparation of analyses under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(C) Duties.--Each employee assigned under
subparagraph (A) shall--
(i) not later than 90 days after the date
of assignment, report to the field manager of
the pilot project office to which the employee
is assigned;
(ii) be responsible for all issues relating
to the jurisdiction of the assigning agency or
office; and
(iii) participate as part of the team of
personnel working on proposed energy projects,
planning, and environmental analyses.
(2) Additional personnel.--The Secretary shall assign to
each pilot project office any additional personnel the
Secretary determines are necessary to ensure the effective
implementation of--
(A) the pilot project; and
(B) other programs administered by the pilot
project offices, including inspection and enforcement
activities relating to energy development on Federal
land, in accordance with the multiple use mandate of
the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq).
(e) Reports.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall submit to the appropriate committees of
Congress a report that--
(1) outlines the results of the pilot project; and
(2) makes a recommendation to the President on whether the
pilot project should be carried out throughout the United
States.
(f) Effect.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency, the employees of which are participating in the
pilot project.
SEC. 220. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by
adding at the end the following:
``(p)(1) Not later than 10 days after the date on which the
Secretary receives an application for a permit to drill, the Secretary
shall--
``(A) notify the applicant that the application is
complete; or
``(B)(i) notify the applicant that information is missing
from the application; and
``(ii) specify any information that is required to be
submitted for the application to be complete.
``(2) Not later than 30 days after an applicant has submitted a
complete application for a permit to drill, the Secretary shall--
``(A) issue the permit; or
``(B)(i) defer making a decision on the permit; and
``(ii) provide notice to the applicant that specifies any
steps that the applicant needs to take for the permit to drill
to be issued.
``(3)(A) If the Secretary provides notice under paragraph
(2)(B)(ii), the applicant shall have a period of 2 years from the date
of receipt of the notice in which to complete all requirements
specified by the Secretary, including providing information needed for
compliance with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(B) If the applicant completes the requirements within the period
specified in subparagraph (A), the Secretary shall issue a decision on
the permit not later than 10 days after the date of completion of the
requirements.
``(C) If the applicant does not complete the requirements within
the period specified in subparagraph (A), the Secretary shall deny the
permit.
``(q) On a quarterly basis, each field office of the Bureau of Land
Management and the Forest Service shall submit to the Secretary of the
Interior or the Secretary of Agriculture, respectively, a report that--
``(1) specifies the number of applications for permits to
drill received by the field office during the period covered by
the report; and
``(2) describes how each of the applications was disposed
of by the field office.''.
TITLE III--ENERGY INFRASTRUCTURE
SEC. 301. EXPORTATION AND IMPORTATION OF NATURAL GAS.
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
adding at the end the following:
``(d) Nothing in subsections (e) through (h) affects the rights of
a State under--
``(1) the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.);
``(2) the Clean Air Act (42 U.S.C. 7401); or
``(3) section 401 of the Federal Water Pollution Control
Act (33 U.S.C. 1341).
``(e)(1) The Commission shall have the exclusive authority to
approve or disapprove the siting, construction, expansion, or operation
of particular facilities (onshore or in State waters) for the import or
export of natural gas from a foreign country.
``(2) No person shall site, construct, expand, or operate a natural
gas import or export facility (onshore or in State waters) unless the
Commission has authorized the activity.
``(3) Approval of an application under paragraph (1) shall not be
conditioned on--
``(A) a requirement that a liquefied natural gas import
terminal shall offer service to any person other than the
person to whom approval under paragraph (1) is granted
(including an affiliate of such a person);
``(B) any regulation relating to the rates, charges, terms,
or conditions of service of a liquefied natural gas import
terminal; or
``(C) a requirement that any schedule or contract relating
to the rates, charges, terms, or conditions of service of a
liquefied natural gas import terminal be filed with the
Commission.
``(4) Notwithstanding paragraph (3), a determination of the
Commission under paragraph (1) relating to the expansion of an existing
liquefied natural gas import terminal that offers service to customers
on an open-access basis shall not result in a subsidy by existing
customers of expansion capacity, degradation of service to existing
customers, or undue discrimination against existing customers as to the
terms or conditions of service of those customers at the terminal, as
determined by the Commission.
``(f)(1) Not later than 1 year after the application to site,
construct, expand, or operate a natural gas import or export facility
under subsection (d) is complete (as determined by the Commission) the
Commission shall approve or deny an application .
``(2) On the date on which approval is received from the Commission
under paragraph (1), a natural gas development zone shall be deemed to
exist in the immediate vicinity of the facility.
``(3)(A) With respect to each application approved under paragraph
(1), the Commission shall establish, consistent with paragraph (1), a
schedule for all Federal and State administrative proceedings commenced
under Federal law that are required to be completed before a person may
site, construct, expand, or operate a natural gas import or export
facility to ensure timely progress toward any such siting,
construction, expansion, or operation.
``(B) The schedule shall include all Federal and State
administrative proceedings authorized by Federal law for the siting,
construction, expansion, or operation of natural gas pipelines and
facilities relating to the transportation of natural gas from the
import or export facility.
``(C) In establishing the schedule, the Commission shall, to the
maximum extent practicable, accommodate the applicable schedules
established by Federal law for the proceedings.
``(D) If a Federal or State administrative agency or officer fails
to complete a proceeding in accordance with the schedule established by
the Commission--
``(i) the action of the Federal or State administrative
agency or officer that is required before a person may site,
construct, expand, or operate the natural gas import or export
facility shall be conclusively presumed; and
``(ii) the siting, construction, expansion, or operation
shall proceed without further condition.
``(4) With respect to the siting, construction, expansion, or
operation of a natural gas import or export facility, the Commission
shall compile a single, exclusive administrative record that
consolidates the records of the proceedings described in paragraph (3).
``(5) Any Federal administrative proceeding that is an appeal or
review of a decision made or action taken by a Federal administrative
agency or officer (or State administrative agency or officer acting
under delegated Federal authority) with respect to the siting,
construction, expansion, or operation of a natural gas import or export
facility shall use as the exclusive record for all purposes the
administrative record compiled by the Commission under paragraph (4).
``(g) With respect to the siting, construction, expansion, or
operation of natural gas import or export facilities, the Commission
shall be the lead Federal agency for purposes of complying with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(h) The Commission shall grant the request of any State or local
agency that requests cooperating agency status in accordance with
regulations promulgated pursuant to the National Environmental Policy
Act (42 U.S.C. 4321 et seq.) with respect to a facility that imports or
exports natural gas.
``(i) Nothing in this section grants the Commission any right of
eminent domain with respect to the siting, construction, expansion, or
operation of a natural gas import or export facility.''.
SEC. 302. EXPORTATION AND IMPORTATION OF NATURAL GAS FOR OFFSHORE
FACILITIES.
(a) Procedure.--Section 5(e) of the Deepwater Port Act of 1974 (33
U.S.C. 1504(e)) is amended by adding at the end the following:
``(3) Coordination of approval processes.--
``(A) In general.--The Secretary, in cooperation with the
Federal Energy Regulatory Commission, shall develop a procedure
to coordinate the processing of all approvals required by the
Secretary or the Federal Energy Regulatory Commission for an
offshore transmission facility, or a related facility, that
is--
``(i) used to transport natural gas from a
deepwater port; and
``(ii) within the jurisdiction of the Federal
Energy Regulatory Commission under the Natural Gas Act
(15 U.S.C. 717 et seq.).
``(B) Inclusion.--The procedure developed under
subparagraph (A) shall include a requirement that, on receiving
an application relating to the siting, construction, expansion,
or operation or an offshore transmission facility, or a related
facility, in accordance with the Natural Gas Act (15 U.S.C. 717
et seq.), the Federal Energy Regulatory Commission shall
approve or deny the application under that Act in accordance
with the timeline of the Secretary relating to a similar
application under subsections (g) and (i)(1).''.
(b) Adjacent Coastal States.--Section 9(b)(1) of the Deepwater Port
Act of 1974 (33 U.S.C. 1508(b)(1)) is amended--
(1) in the second sentence, by striking ``The Secretary''
and inserting ``Except in the case of a license for a deepwater
port for natural gas, the Secretary''; and
(2) by adding at the end the following: ``In the case of a
license for a deepwater port for natural gas located more than
20 miles from the coast of a State, a condition on the license
shall not negatively affect the construction or operation of
the project.''
SEC. 303. NATURAL GAS PIPELINE INFRASTRUCTURE.
(a) Extension of Facilities; Abandonment of Service.--Section 7 of
the Natural Gas Act (15 U.S.C. 717f) is amended by adding at the end
the following:
``(i)(1)(A) With respect to each application under subsection (d)
for authorization to undertake the construction or expansion of a
facility under the jurisdiction of the Commission, the Commission shall
establish a schedule for all Federal and State administrative
proceedings commenced under Federal law that are required to be
completed before a person may site, construct, expand, or operate a
natural gas facility to ensure timely progress toward any such siting,
construction, expansion, or operation.
``(B) In establishing the schedule, the Commission shall, to the
maximum extent practicable, accommodate the applicable schedules
established by Federal law for the proceedings.
``(C) If a Federal or State administrative agency or officer fails
to complete a proceeding in accordance with the schedule established by
the Commission--
``(i) the action of the Federal or State administrative
agency or officer that is required before a person may site,
construct, expand, or operate the natural gas facility shall be
conclusively presumed; and
``(ii) the siting, construction, expansion, or operation
shall proceed without further condition.
``(2) With respect to the siting, construction, expansion, or
operation of a natural gas facility subject to the jurisdiction of the
Commission, the Commission shall compile a single administrative record
that consolidates the records of the proceedings described in paragraph
(1).
``(3) Any Federal administrative proceeding that is an appeal or
review of a decision made or action taken by a Federal administrative
agency or officer (or State administrative agency or officer acting
under delegated Federal authority) with respect to the siting,
construction, expansion, or operation of a natural gas facility subject
to the jurisdiction of the Commission shall use as the exclusive record
for all purposes the administrative record compiled by the Commission
under paragraph (2).
``(j) With respect to the siting, construction, expansion, or
operation of natural gas facilities subject to the jurisdiction of the
Commission, the Commission shall be the lead Federal agency for
purposes of complying with the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).''.
(b) Rehearing; Court Review of Orders.--Section 19 of the Natural
Gas Act (15 U.S.C. 717r) is amended by adding at the end the following:
``(d)(1) The United States Court of Appeals for the District of
Columbia Circuit shall have original and exclusive jurisdiction over
any civil action--
``(A) for review of an order or action issued by the
Commission under section 3;
``(B) for review of an order or action of a Federal or
State administrative agency or officer to issue, condition, or
deny any permit, license, concurrence, or approval issued under
a Federal law required for the siting, construction, expansion,
or operation of a natural gas facility for which a certificate
of public convenience and necessity is issued by the Commission
under this Act;
``(C) alleging unreasonable delay or conditioning by a
Federal or State administrative agency or officer in entering
an order or taking other action described in subparagraph (B);
or
``(D) challenging a decision made or action taken under
this subsection.
``(2)(A) If the Court finds that an order, action, or failure to
act is not consistent with the public convenience or necessity (as
determined by the Commission under this Act), or would prevent the
siting, construction, expansion, or operation of natural gas facilities
authorized by a certificate of public convenience or necessity, the
permit, license, concurrence, or approval that is the subject of the
order, action, or failure to act shall be deemed to have been issued
subject to any conditions set forth in the reviewed order or action
that the Court finds to be consistent with the public convenience or
necessity.
``(B) For purposes of paragraph (1)(B), the failure of an agency or
officer to issue a permit, license, concurrence, or approval by the
later of the date that is 1 year after the date of filing of an
application for the permit, license, concurrence, or approval or the
date that is 60 days after the date of issuance of the certificate of
public convenience or necessity under this section, shall be considered
unreasonable delay unless the Court, for good cause shown, determines
otherwise.
``(C) The Court shall expedite the consideration of any action
brought under paragraph (1).''.
SEC. 304. NATURAL GAS STORAGE FACILITIES.
Section 4 of the Natural Gas Act (15 U.S.C. 717c) is amended by
adding at the end the following:
``(f)(1) On receiving an application from a natural gas company
that is the owner or operator of a natural gas storage facility, the
Commission may allow the company to charge a market-based rate for
natural gas storage and storage-related services at the facility even
if the Commission finds that the facility may have the ability to
exercise market power, if, in the sole discretion of the Commission,
allowing market-based rates is in the public interest.
``(2) The Commission may place reasonable conditions on the
allowance of the Commission of market-based rates under this
subsection, such as requiring the storage capacity to be sold through
an open and transparent auction.
``(3) If the Commission allows market-based rates under this
subsection, the Commission shall review periodically whether the
storage facility continues to qualify under this subsection to charge
market-based rates.''.
SEC. 305. BACKUP FUEL CAPABILITY STUDY.
(a) Study.--The Secretary of Energy shall conduct a study on the
effect of having liquid and other fuel backup capability for gas-fired
power generation facilities and for other gas-fired industrial
facilities.
(b) Contents.--The study shall address--
(1) the costs and benefits of adding a different fuel
capability to power gas-fired power generating and industrial
facilities, taking into consideration regional differences;
(2) Federal and State government methods of encouraging
gas-fired power generators and industries to develop a
capability to power the facilities of the generators and
industries by another fuel;
(3) the effect on the supply and cost of natural gas of a
balanced portfolio of fuel choices in power generation and
industrial applications;
(4) the effect on the supply and cost of natural gas of a
State that permits agencies to carry out policies that
encourage other fuel backup for gas-fired power generation; and
(5) changes required in the Clean Air Act (42 U.S.C. 7401
et seq.) to allow natural gas generators to add clean backup
fuel capabilities.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy shall submit to Congress
a report on the results of the study, including recommendations
regarding further Federal Government activity regarding backup fuel
capability.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
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