H2192 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ozone odor nonattainment areas which The gentlewoman from California not only wants and deserves an energy includes the area that all my great (Mrs. CAPPS) talked about the MTBE policy, but today our four committee friends over here live in and I live in. issue. Her amendment was not made in chairmen, the gentleman from New We need a fair bill that addresses the order. York (Mr. BOEHLERT); the gentleman urgent need for clean air for ourselves The gentlewoman from Texas (Ms. from California (Mr. POMBO); the gen- and our children. EDDIE BERNICE JOHNSON) just talked tleman from California (Mr. THOMAS); Mr. Speaker, prolonging our dirty air about her clean air amendment which and the gentleman from Texas (Mr. problem is not the solution. I urge my was not made in order. BARTON), the chairman of the Com- colleagues that desire clean air for The gentleman from West Virginia mittee on Energy and Commerce, have themselves and their constituents to (Mr. RAHALL) had a coal amendment led us down a path to where we have an oppose this rule and oppose this bill. I which was not made in order. opportunity to make history right in am from an energy-producing State. The gentleman from Maryland (Mr. front of us, produce this bill, produce Mr. SESSIONS. Mr. Speaker, I re- GILCHREST), the gentleman from Mas- for the American public something serve the balance of my time. sachusetts (Mr. OLVER), and the gen- that will help America to grow and be- Mr. MCGOVERN. Mr. Speaker, I yield tleman from Maryland (Mr. VAN come competitive in the world. 1 1 ⁄2 minutes to the gentleman from Or- HOLLEN) had an amendment on global Mr. Speaker, I would say that I sup- egon (Mr. BLUMENAUER). warming, to come up with a strategy port this legislation. Mr. BLUMENAUER. Mr. Speaker, I to deal with it. That was not made in Mr. Speaker, I yield back the balance appreciate the gentleman’s courtesy. order. of my time, and I move the previous We are fond of saying around here My colleagues heard from the gentle- question on the resolution. that the world changed after Sep- woman from Nevada (Ms. BERKLEY) The previous question was ordered. tember 11, but the energy bill did not. talk about Yucca Mountain. Her The resolution was agreed to. This bill is virtually identical to Dick amendment was not made in order. A motion to reconsider was laid on Cheney’s energy task force and where Tax credits for hybrid cars. The gen- the table. the House has been these last 4 years tleman from Michigan (Mr. DINGELL) f with concerns, notwithstanding the talked about hydroelectric licensing. Enron scandal, skyrocketing gasoline GENERAL LEAVE That was not made in order. prices and demands on scarce oil sup- So a lot of very important and vital Mr. BARTON of Texas. Mr. Speaker, plies in unstable parts of the world. issues, we have been shut out from of- I ask unanimous consent that all Mem- It is ironic that the American bers may have 5 legislative days within public’s vision is much clearer than fering them here today. If we are going to have a real democracy and a real de- which to revise and extend their re- Congress. They want to increase the marks and include extraneous material CAFE standards. The public has very bate on this issue, these important issues should have a place for debate on H.R. 6. clear views about the Arctic Wildlife The SPEAKER pro tempore (Mr. Refuge, that it is the last place Amer- here on the House floor. Let me just finally say instead of LAHOOD). Is there objection to the re- ica should look for oil, not the next bringing up yet another bill that re- quest of the gentleman from Texas? place. There was no objection. They oppose a waiver and relief to wards corporate donors, I wish the f the MTBE manufacturers at the ex- leadership on the other side would pense of State and local authorities think about the future, about the world ENERGY POLICY ACT OF 2005 and the quality of local drinking water. our children and grandchildren will in- The SPEAKER pro tempore. Pursu- This bill is looking at our energy herit and give us an energy bill that ant to House Resolution 219 and rule problem through a rearview mirror. It actually makes the world a better XVIII, the Chair declares the House in gives too much to the wrong people to place. the Committee of the Whole House on This bill does not do it, and I would do the wrong thing and is dramatically the State of the Union for the consider- urge my colleagues to vote against it. out of step with what the American ation of the bill, H.R. 6. public wants and needs. Mr. SESSIONS. Mr. Speaker, I yield The Chair designates the gentle- The politics of today and yesterday’s myself such time as I may consume. woman from West Virginia (Mrs. I want to thank my colleagues on the policies do not provide an energy road CAPITO) as Chairman of the Committee other side of the aisle for their vig- map for the future. It is true that lots of the Whole, and requests the gen- orous debate that took place, not only of people have been working very hard tleman from Iowa (Mr. LATHAM) to as- yesterday in the Committee on Rules. on this bill, but I would suggest that sume the chair temporarily. never have so many worked so hard The gentleman from Texas (Chairman 1458 and so long to do so little to change BARTON) spoke about the days and days b the direction of this country’s energy and hours of debate and amendment IN THE COMMITTEE OF THE WHOLE future. process of preparing this bill. Accordingly, the House resolved For the sake of the country, one I think we have got a good bill. I itself into the Committee of the Whole hopes that there will come a time when think we are going to find out when House on the State of the Union for the the needs and wishes of the public is the ultimate vote comes that a vast consideration of the bill (H.R. 6) to en- heard and it will be reflected in an en- majority of Members of this House are sure jobs for our future with secure, af- ergy policy for this century, cost-effec- going to say we want to make sure that fordable, and reliable energy, with Mr. tive and rational; preserving the qual- America has an energy policy, an en- LATHAM (Acting Chairman) in the ity of life, rather than operating on the ergy policy that encourages not only chair. cheap. conservation but also the opportunity The Clerk read the title of the bill. Mr. MCGOVERN. Mr. Speaker, I yield for America to be less dependent on The Acting CHAIRMAN. Pursuant to myself the remaining time. foreign oil, one that makes sure the the rule, the bill is considered read the Mr. Speaker, first of all, with regard Federal Government begins the process first time. to the rule, the majority just does not to form a critical mass in solar energy General debate shall not exceed 1 get it. Out of 90 amendments that were and other new technologies to make hour and 30 minutes, with 30 minutes offered last night in the Committee on sure that America’s businesses catches equally divided and controlled by the Rules, there were 22 Democratic on to this and that we become environ- chairman and ranking member of the amendments made in order. mentally sensitive and comprehensive Committee on Energy and Commerce, Thanks for making the 22 amend- in our future, but mostly that we are and 20 minutes equally divided and ments in order; but quite frankly, it is able to grow our economy, continue job controlled by the chairman and rank- not enough. This is the energy bill. growth, and make sure that we protect ing member of each of the committees This is an important bill. As my col- jobs that exist today. on Science, Resources, and Ways and leagues have heard from various Mem- Mr. Speaker, I think that this rule Means. bers here today, a lot of important was fair. I believe that the underlying The gentleman from Texas (Mr. BAR- amendments were not made in order. legislation is common sense. America TON) and the gentleman from Michigan

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00040 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.075 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2193 (Mr. DINGELL) each will control 15 min- hurt the environment, hurt consumers, tleman from Georgia (Mr. NORWOOD), a utes from the Committee on Energy and cost taxpayers a bundle of money. member of the committee. and Commerce. Democrats have been trying to work Mr. NORWOOD. Mr. Chairman, I The Chair recognizes the gentleman with our Republican colleagues to get thank the gentleman for yielding me from Texas (Mr. BARTON). balanced, sensible legislation, starting this time, and I have a little different view of this. b 1500 with a clean slate in a bipartisan fash- ion. This is a good bill. It is a bill this Mr. BARTON of Texas. Mr. Chair- We have been denied that oppor- country needs. We need a national en- man, I yield myself 2 minutes. tunity. The Republican leadership ergy policy, there is no question about Mr. Chairman, I rise in strong sup- chose, instead, to push an outdated en- it, and I congratulate the gentleman port of H.R. 6, the Energy Policy Act of ergy bill which had its origins in the from Texas (Mr. BARTON) on years of 2005. Passage of this comprehensive bill secret Cheney Energy Task Force and hard, dedicated work to bring this to will ensure a more affordable, environ- was negotiated in secret conference the floor. mentally friendly energy supply. meetings which excluded the Demo- Having said that, like any other bill America’s prosperity and national se- crats. I have ever seen, it is not a perfect bill; curity are at stake. The bill before us The administration’s own Energy In- it has its good and bad parts. And if I today is a balanced bill and it is a bi- formation Administration analyzed the could, Mr. Chairman, just for the partisan bill. It will have lower energy old bill saying changes to production, record, I would like to have a little prices over time for consumers, it will consumption, imports, and prices are quick colloquy with the gentleman help spur our economy, create hun- negligible. It even found, as I noted, from Texas. dreds of thousands of jobs, and take un- that gasoline prices under the bill Mr. BARTON of Texas. Mr. Chair- precedented steps to promote greater would increase more than if the bill man, if the gentleman will yield, I energy conservation and efficiency. were not enacted. would be happy to have a colloquy with The Energy Policy Act of 2005, among While the bill will little help our en- the gentleman from Georgia. other things, improves our Nation’s ergy independence, it is far from be- Mr. NORWOOD. Mr. Chairman, as my electric transmission capacity; pro- nign. Despite our efforts to overturn colleague from Texas knows, the elec- motes a cleaner environment with new the antienvironmental provisions of tricity title is very, very important to innovations on alternative power the bill, it weakens laws such as the my consumers and my constituents in sources, the Clean Cities authorization, Safe Drinking Water Act and the Leak- the southeast as well as in the north- and the hydrogen fuel cell car program; ing Underground Storage Tank pro- west, and one of the provisions in the it promotes clean coal technologies, gram that protect the environment and title that is not there is regarding provides incentives for renewable ener- public health. participatory funding. Since that is a fairly standard gies, such as biomass, wind, solar and The bill also changes hydroelectric thought-out thing in regional trans- hydroelectricity. power policies by undercutting safe- mission organizations, I am concerned The bill would provide leadership in guards for dam relicensing. It gives that the bill does not have any lan- energy conservation by establishing power producers more and better rights guage in there to assure me and my new mandatory efficiency require- than States, tribes, and other public constituents that they are not going to ments for Federal buildings, and ex- entities. It jeopardizes not only fish, have to pay extra. We do really want to pands the Energy Star program to tell but the overall health of our river sys- help people that are having blackouts American consumers what products tems and the recreational activities and brownouts, but we do not think we save the most energy. that they sustain; and it confers, un- should pay the whole load. The bill also provides an efficient ap- fairly, rights on people, while not tak- ing the same care of the concern of the What can I anticipate on proval process for siting new liquified participatory funding down the road? natural gas facilities. It would, for the citizenry generally. The bill eliminates requirements for Mr. BARTON of Texas. Mr. Chair- first time, give an expedited procedure, public participation and deference to man, will the gentleman yield? hopefully in brownfield areas and high- the States in decisions about the siting Mr. NORWOOD. I yield to the gen- unemployment areas, for expanding or of electric transmission lines and nat- tleman from Texas. building some new refineries. We have ural gas facilities. Mr. BARTON of Texas. Mr. Chair- not built a new oil refinery in this As far as consumers are concerned, it man, as the gentleman well knows, the country for the past 30 years. is hard to imagine a better case for in- gentleman from Illinois (Mr. SHIMKUS) I could go on and on, Mr. Chairman, creasing consumer protections than offered an amendment in the com- but simply let me say at the beginning the debacle which took place in the mittee that struck the participatory of the debate that it is time for an en- West Coast electricity markets in 2000 funding language from the conference ergy policy for America. It is time for and 2001. The Federal Energy Regu- report, but at that time, I assured the the House of Representatives to say we latory Commission has determined gentleman from Georgia and the gen- want a strong economy based on the widespread fraud existed, and there are tleman from Mississippi and several world’s best and most open free market tapes to prove it; yet this bill gives other interested Congressmen in the for energy supplies, and also to put only cosmetic reforms in law and, in committee that when we go to con- some incentives in for conservation. point of fact, repeals the Public Utility ference with the Senate, we will work I strongly support the bill, and I look Holding Company Act of 1935, which out language that is fair and balanced forward to the debate we are about to protects consumers and investors. and protects the rights of the incum- begin. And it does nothing to assure refunds bent local utilities and also the inde- Mr. DINGELL. Mr. Chairman, I yield of unjust and unreasonable over- pendent power producers to find a fair myself 3 minutes. charges. While blackouts cost the con- and balanced way in which to build and (Mr. DINGELL asked and was given sumers $80 billion, this bill holds a sen- maintain the transmission system for permission to revise and extend his re- sible reliability provision hostage to our great Nation’s electricity grid. marks.) its more controversial provision and Mr. NORWOOD. Mr. Chairman, re- Mr. DINGELL. Mr. Chairman, we caps the necessary expenditure to set claiming my time, I thank the gen- have a bad bill. It is represented as the job right. tleman very much. As he knows, I being something which is going to save Taxpayers will also be hit hard by agree participatory means ‘‘everybody money and increase energy supplies. this bill. We do not know the total pays,’’ and those that reap the advan- The Energy Information agency says cost, but last time it cost over $30 bil- tages of this, which will be the genera- neither of these cases is true. It is not lion, four times the amount requested tors of electricity and the receivers of going to reduce energy prices, but rath- by the administration. electricity, need to pay. And I am all er will increase the cost of gasoline. This is a bad bill. I urge my col- right with that. Let us look at what our country leagues to reject it. I thank my colleague, and I look for- needs. It needs Congress to pass a real Mr. BARTON of Texas. Mr. Chair- ward to working with him on this as we energy bill, not a flawed bill that will man, I yield 2 minutes to the gen- move forward toward conference.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00041 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.077 H20PT1 H2194 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Mr. BARTON of Texas. If the gen- windfall for ExxonMobil, but an attack right step at the right time, but, Mr. tleman will continue to yield, there on communities all around this coun- Chairman, it is not the fault of our will be a provision in the conference re- try facing contaminated drinking committee or our body. port that comes back when we report water. We need to move forward now. I urge the conference out. This bill makes the most significant passage of this bill. Mr. NORWOOD. I thank the Chair- changes to the Clean Air Act in 15 Mr. DINGELL. Mr. Chairman, I yield man. years, allowing corporate polluters to 3 minutes to the gentleman from Mas- Mr. DINGELL. Mr. Chairman, I yield expose 53 million Americans to air pol- sachusetts (Mr. MARKEY). 3 minutes to the gentleman from Cali- lution for years longer than current b 1515 fornia (Mr. WAXMAN). law. Mr. MARKEY. Mr. Chairman, this is Mr. WAXMAN. Mr. Chairman, Repub- I urge my colleagues to oppose this truly a bad bill. Every day we have pic- lican leaders say that the bill before us fundamentally flawed legislation. tures on the screen of consumers pull- is comprehensive energy legislation Mr. BARTON of Texas. Mr. Chair- ing up to the gas pump, paying an arm that will meet the Nation’s energy man, I yield 2 minutes to the gen- and a leg for gasoline. We have 150,000 needs by protecting the environment tleman from Missouri (Mr. BLUNT), the young men and women over in the Mid- and safeguarding consumers. Well, distinguished majority whip and a dle East protecting our country in that these are the right goals, but there is member of the committee. region, and largely as well the oil sup- only one problem: The bill accom- Mr. BLUNT. Mr. Chairman, I thank plies coming into our country. plishes none of them. This is an the gentleman from Texas for yielding me this time to speak in favor of this This bill does nothing in order to antienvironment, anticonsumer, anti- deal with that problem. In fact, the De- taxpayer bill. bill, and I thank him for his great lead- ership to bring this bill to the floor. partment of Energy analysis of an al- This bill fails to provide secure, sus- most identical bill in the last Congress tainable, and affordable energy sup- For 6 years now, the President of the United States has been saying that one concluded that changes to production, plies. It does nothing about the most consumption, imports, and prices are important energy issues facing our Na- of our primary failings as a country was to have an energy policy that negligible. The bill would open the tion, like addressing global warming moved forward. For three Congresses, pristine Arctic National Wildlife Ref- and reducing the Nation’s dependence our body has responded to that, first ugee to oil and natural gas exploration on foreign oil. Instead, this bill lav- with the leadership of the gentleman even though there is such a small sup- ishes taxpayer subsidies on big energy from Texas as chairman of the sub- ply of oil and gas there that most of companies, while weakening our envi- committee, and now with his leader- the oil companies have pulled out of ronmental laws. ship as chairman of the full committee, the coalition trying to open it to drill- I have never encountered a time bringing an energy bill to the House ing. when the disconnect between rhetoric floor for three straight Congresses. This bill contains a liability waiver and reality has been so enormous. The What we do here today and tomorrow for the big oil companies that would President says he wants to save Social can be extremely important to solve force cities and States to spend billions Security, yet he proposes a plan that the problems that we see at the gas to clean up drinking water supplies would cut benefits and privatize the pumps today, to solve the problems that have been contaminated with the program. Republicans in Congress say that we see if you try to buy fertilizer gasoline additive MTBE which is they want limited government, yet today, to solve the natural gas prob- known to cause cancer. they enact legislation intruding on the lems. This bill tramples on the right of end-of-life decisions for the poor Now, it will not solve these problems State and local governments to protect woman in Florida. Congressional lead- next week or next month, or even their citizens from potentially dan- ers say they want to support high maybe the month after that. If, how- gerous energy facilities such as large moral standards in government, yet ever, we had passed the bill my col- liquefied natural gas terminals that they gut the ethics process in the league had brought to the floor 4 years would be sited right in the middle of House. And in this so-called energy bill ago, these problems we see today would densely populated cities in our coun- we shower billions on special interests not be the large problems that we see try, even though we know they would while ignoring our Nation’s serious en- today. And for the leadership of this be the number one terrorist target con- ergy needs. chairman, the leadership of the chair- structed in that city. The Republican energy plan is a bo- man of the Committee on Ways and This bill allows oil and gas compa- nanza for the energy industry. While Means, and the leadership of the chair- nies to pollute drinking water by natural gas, heating oil, and gasoline man of the Committee on Resources, I granting them special exemptions from prices have skyrocketed, we are going am grateful. the Clean Water Act. to be giving these companies more I am also grateful to our friends on This bill allows refineries and utili- money. Shell Oil reported the highest the other side, led by the gentleman ties to increase air pollution with spe- corporate profits in the history of the from Michigan (Mr. DINGELL). They did cial exemptions from the Clean Air United Kingdom. ExxonMobil an- the hard work they did in the markup. Act. nounced the largest annual profit ever While they may not have agreed with There is a special provision in this made by a public company, $25 billion. all of the final product, certainly many bill to protect Halliburton from ever There are steps we could take to ad- parts of this product benefited from the facing any Federal regulation of a dress our energy problems, but this leg- work they did on this committee. practice of drilling for oil using the hy- islation ignores them. We urgently One of the things we have done is il- draulic fracturing technique that actu- need to reduce our dependence on for- lustrated here by a map that just ally injects diesel fuel into the water eign oil, yet America’s dependence on shows how many kinds of fuel there are supply. oil imports will grow by 75 percent over all over the United States. We have There is a special provision added the next 20 years under this bill. tried to limit the numbers of those that authorizes grants and other assist- The bill fails to address the market fuels in this bill, and even asked the ance to something called the Dine abuse and manipulation that caused EPA to look to the future and see what Power Authority, an enterprise of the the California energy crisis, costing that right number is. Navaho Nation. Who are the bene- consumers in California and western Every time you make gasoline less of ficiaries of that provision? Why do they States billions of dollars. a commodity and make it more of a deserve our largess? We never had a This bill carves a loophole in the specialty item, you increase the cost, hearing on it. laws protecting our coastlines, our for- reduce the reliability, and the access to There is a special provision in the ests, and our public lands. And under gasoline. We hope to move away from bill that provides a $1.3 billion subsidy this bill, when a big oil company pol- that. We hope to do more things to use to the Idaho National Laboratory to lutes community drinking water, the conservation and use renewable fuels. build a special advance nuclear reactor oil companies will no longer be held re- This is the right step. It is after the to produce hydrogen for the hydrogen sponsible for cleaning it up. It is a right time. I wish I could say it is the car. Bad bill; vote ‘‘no.’’

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00042 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.079 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2195 Mr. Chairman, I rise in opposition to H.R. 6. lation of the practice of drilling for oil using the our work pay off because I think this I have the greatest respect and affection for hydraulic fracturing technique that actually in- time we will get it across the finish the Chairman of the Committee, the distin- jects diesel fuel into acquifers. line because it meets the demands of guished gentleman from Texas (Mr. BARTON), There’s the special provision added that au- the country. We have to diversify our but I must say in all honesty that this is really thorizes ‘‘grants and other assistance’’ to energy portfolio. We can no longer rely a terrible energy bill. something called ‘‘the Dine Power Authority, on one fuel source, whether it is for The Chairman comes from Texas, and I’m an Enterprise of the Navajo Nation.’’ Who are electricity generation or to move our sure that from a Lone Star State perspective, they? Why do they deserve our largess? vehicles. We have to diversify our en- this looks like a pretty good bill. But most of There’s the special provision added that ergy portfolio, and that is what this our constituents don’t come from oil producing provides a special exemption from our Na- bill does. states. Most of our constituents are energy tion’s nuclear nonproliferation law for a Cana- This bill brings clean coal tech- consumers, and from a consumer perspective dian company named Nordion, so that they nology, strengthens nuclear power; and this bill is seriously deficient. In fact, I would won’t be required to ever agree to convert it actually helps renewable power in suggest that this bill is a bit like that old Clint their nuclear reactor to using Low-Enriched the aspect of wind power. It does great Eastwood spaghetti Western: ‘‘The Good, the Uranium fuel and targets, but can instead con- things for relicensing hydroelectric Bad and the Ugly.’’ tinue to use bomb-grade Highly Enriched Ura- power. It helps expand the trans- There is a tiny bit of good in the bill—like nium that is a potential terrorist target. mission grid and block the backlogs extending daylight saving time by a month in There’s the special provision in the bill that that helped cause the major blackout the Spring and a month in the Fall. Now, that provides a $1.3 billion subsidy to the Idaho that we had 2 years ago. It addresses a was a good idea, it really was—and I’m glad National Laboratory to build a special ad- diversified energy portfolio on fuels. that the gentleman from Michigan (Mr. UPTON) vanced nuclear reactor to produce hydrogen It brings renewable fuels to the fore- and I were able to get it in the bill. for the hydrogen car. front in this debate. Gasoline is $2.20, But in all honesty I think I have to say that This is not what a national energy policy $2.30. Consumers can buy E–85 ethanol for the most part, what we have here before should be—a tiny bit of Good in a sea of Bad fuel for $1.65 a gallon. So what we have us today is one truly Bad and Ugly bill: and Ugly provisions. No. We should try to been doing in the past is working. This First, let’s take a look at the Bad: seek a fair balance between the interests of bill addresses the supply end, and it This bill does virtually nothing to address consumers and producers, between the need also addresses the demand end. We the current spike in crude oil prices or the for new production and the preservation of our have to have a national energy policy. price of gasoline at the pump. In fact, a De- natural environment. We should take advan- We can no longer allow the country to partment of Energy analysis of an almost iden- tage of America’s strength—our technological not have a plan. I am excited about an opportunity to tical bill in the last Congress concluded that superiority—and not play to our weakness (the pass this bill on the floor tomorrow, ‘‘changes to production, consumption, imports fact that we control only 3 percent of the move it to conference, and get it to the and prices are negligible.’’ world’s oil reserves, while OPEC controls President’s desk. I want to commend This bill would open the pristine Arctic Na- more than 70 percent). the bipartisan majority that passed it tional Wildlife Refuge to oil and natural gas Americans own more cars than there are li- out of the committee, and commend exploration, even though there is such a small censed drivers, and yet this energy bill does the chairman for his work. nothing to address the fuel efficiency of cars. supply of oil and gas there that most of the oil Mr. DINGELL. Mr. Chairman, I yield companies have pulled out of the coalition try- Instead this bill offers up the false hope that 11⁄2 minutes to the gentlewoman from ing to open it to drilling. drilling in the Arctic Refuge will solve our en- California (Mrs. CAPPS). This bill contains a liability waiver for the big ergy problems, ignoring that the United State’s Mrs. CAPPS. Mr. Chairman, I rise in oil companies that would force cities and 3 percent of world oil reserves will never opposition, strong opposition to this states to spend billions to clean up drinking match our 25 percent of world oil consump- bill. My colleagues have outlined the water supplies that have been contaminated tion. For some fuzzy math, we would sacrifice many problems with it. It does nothing with the gasoline additive MTBE, which is the last great wilderness in America, an area to impact gas prices. In fact, according known to cause cancer. biologically unique within the American Arctic. to the Energy Information Agency, it This bill tramples on the right of state and It didn’t have to be this way. I lived through will raise prices at the pump. It gives local governments to protect their citizens from the energy policy battles of the late It didn’t billions to industries with already- potentially dangerous energy facilities, such as have to be this way. It really didn’t. But the soaring profits, and it weakens a host large Liquefied Natural Gas (LNG) terminals Republican Majority that controls this Con- of environmental laws. sited right in the middle of densely populated gress today decided to make energy policy Mr. Chairman, one provision epito- urban areas. partisan with a bill that is extreme and over- mizes the bill’s failures. H.R. 6 grants This bill allows oil and gas companies to reaching. So I would say to my Republican liability protection for people who pollute drinking water by granting them special Colleagues, you may have the votes to prevail make MTBE who are responsible for exemptions from the Clean Water Act. here on the House floor this week, but this ex- polluting groundwater in dozens of This bill allows refineries and utilities to in- treme bill will not become law. Democrats in States, leaving hundreds of commu- crease air pollution with special exemptions this body, along with our colleagues in the nities saddled with billions of dollars in from the Clean Air Act. Senate, will fight to ensure that the Bad and cleanup costs. Supporters claim it is This bill gives utilities who dam the public’s Ugly provisions that presently make up the fair to protect MTBE producers from waterways special rights to appeal and bulk of this bill are deleted or revised. And if liability since Congress mandated its change conditions federal resource agencies they are not, we will fight to prevent this bill use in the Clean Air Act, but there is placed on their hydropower license in order to from moving to the President’s desk. no mandate for MTBE and even the protect fish, the environmental, irrigation, navi- I urge my colleagues to vote against this chairman of the committee has ac- gation or other public uses of our nation’s riv- bill. We can and must do much better. knowledged as much. In fact, 120 mil- ers. Mr. BARTON of Texas. Mr. Chair- lion barrels were added to gasoline be- This bill repeals the Public Utility Holding man, I yield 2 minutes to the gen- fore the clean air regulations were ever Company Act, a consumer and investor pro- tleman from Illinois (Mr. SHIMKUS). issued. Most damning, documents un- tection law that restricts utilities from self-deal- Mr. SHIMKUS. Mr. Chairman, I earthed in court cases show that manu- ing and limits their ability to diversify into risky thank the gentleman from Texas (Mr. facturers knew the dangers MTBE unregulated business ventures at the expense BARTON) for yielding me this time and posed to groundwater, and they still of utility consumers. for his great work on this bill. It added it to gasoline. The result is what Second, let’s take a look at the just plain sounds like it is not the bill that I we have today, over 1,800 contamina- Ugly. voted on, but I am very pleased to sup- tion sites in 29 different States serving There’s a special provision in this bill for port it. There is no more important bill 45 million Americans. Home Depot that preempts several states ex- in my time here in Congress than the I wanted to offer an amendment to isting or proposed energy efficiency standards bill we are addressing today, and there strike this provision because in its wis- for ceiling fans. is no more important bill for the State dom the House leadership would not There’s a special provision in here to protect of Illinois than the bill we are address- want to vote on this. Perhaps it is be- Halliburton from ever facing any Federal regu- ing today. It makes all of the years of cause too many Members on both sides

VerDate jul 14 2003 05:19 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00043 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.033 H20PT1 H2196 CONGRESSIONAL RECORD — HOUSE April 20, 2005 of the aisle represent districts with bad Mr. DINGELL. Mr. Chairman, I yield (Mr. SHAYS asked and was given per- MTBE problems in places where law- 11⁄2 minutes to the gentlewoman from mission to revise and extend his re- suits are pending. Because of the California (Ms. SOLIS). marks.) MTBE provisions alone, we should re- Ms. SOLIS. Mr. Chairman, today I Mr. SHAYS. Mr. Chairman, I rise in ject this bill. rise in opposition to the energy bill. opposition to the legislation. Mr. BARTON of Texas. Mr. Chair- The bill limits States’ rights to protect Mr. Chairman, protecting our environment man, I yield 2 minutes to the gen- their water supplies and protect their and promoting energy independence are two tleman from Texas (Mr. GENE GREEN), air quality, risks the public health of of the most important jobs I have as a Mem- one of nine Democrats on the Com- our working families, and leaves our ber of Congress. Unfortunately, the bill before mittee on Energy and Commerce who States to pick up the tab for contami- us today represents a real missed opportunity voted for this bill in committee. nation. to reduce our dependence on foreign oil, pro- Mr. GENE GREEN of Texas. Mr. First, the bill puts important ground- mote energy efficiency and conservation, and Chairman, I thank the gentleman for water supplies at risk by allowing die- improve our air, land and water quality. yielding me this time. sel fuel and other contaminants to be For decades, our country has lacked a na- There was pressure to rush this bill injected into the ground with no over- tional energy policy. While I did not agree with out of the committee without a mark- sight by EPA. the Administration’s energy plan, I was grate- up, but I am glad the committee made Second, supporters of the bill refuse ful President Bush put forward a comprehen- the right decision. We had a 3-day full to take steps to prevent leaks into the sive proposal. The President’s energy plan committee markup where almost every groundwater from underground storage was superior to the severely flawed bill before imaginable energy issue was raised, tanks by rejecting attempts to require us today. from cow manure energy to ocean new replacement storage tanks near We had a chance to devise a forward-look- power. We even extended daylight sav- drinking water wells or sensitive areas ing energy policy that would have increased ings time to save energy. to be secondarily contained. fuel efficiency, made polluters (including Overall, there are many beneficial Third, the bill would make States MTBE producers) pay for harming our environ- provisions in this bill, such as resolv- weaken programs to prevent leaks dur- ment, and advanced a renewable portfolio ing permit confusion, improving elec- ing fuel delivery or risk losing Federal standard. Instead what we have is quite a bad tric reliability, and mandating Federal cleanup funds. bill. Finally, the language unnecessarily energy conservation. Instead of creating a balanced energy policy Importantly, this bill provides incen- targets poor and underserved commu- that provides incentives to make renewable tives to clean coal technology, renew- nities for the unrestricted siting of new energy more affordable and widely available, able energies like wind and solar; and refineries. Together, all these actions we are making fiscally irresponsible and envi- it also increases LIHEAP funding au- are environmental and public health ronmentally-reckless decisions for the benefit thorization to $5 billion for this year. injustices. While the bill benefits cor- of a few profitable industries that don’t need Very quickly, I want to thank the porate America, it leaves communities this kind of help from taxpayers. chairman for inclusion of a number of like mine with more contaminated I fail to understand why the major thrust of provisions in the bill, such as the pro- groundwater, increases the cost of the bill’s tax provisions involve further sub- vision encouraging the siting on lique- cleanup borne by taxpayers and water sidizing the fossil fuel industry, rather than fied natural gas (LNG), which is impor- providers, and increases the risks to providing incentives for conservation and re- tant to energy security to cut into the public health for all Americans. rising natural gas prices that threaten Mr. BARTON of Texas. Mr. Chair- newable sources of energy. These are enor- our economy. man, I yield 1 minute to the gentleman mously profitable industries operating in a time The top concern of homeowners and from Indiana (Mr. BUYER). of record energy prices. Clearly, these profits manufacturers in our district are the Mr. BUYER. Mr. Chairman, I thank demonstrate the market has already provided high natural gas prices. If we keep off- the gentleman from Texas (Mr. BAR- the fossil fuel industries with sufficient incen- shore production limits, we have to TON) for yielding me this time. The tive to increase production. have LNG to import from other coun- gentleman has done a magnificent job I strongly oppose a provision in the bill that tries. We included some modern incen- leading the committee on this new bill. allows for the permanent activation of the tives for petroleum coke gasification I would just say, in America we face Cross Sound Cable. In doing so, the bill sub- so we can see what we can do with basi- some great challenges with regard to verts the regulatory process and ignores cally a byproduct, and important coal formulation of our energy policy. The sound environmental policy regarding the gasification incentives. Energy diver- oil demand growth keeps rising due to depth at which the Cable should be buried. sity brings economy-wide benefits. the industrialization of the emerging In addition to its environmental shortsighted- I commend the authorization of a world. China consumes 7 million bar- ness, I also oppose provisions in this bill re- complex well-testing project at the rels per day; and if China’s rise in lated to energy transmission. For instance, the Rocky Mountain Oilfield Testing Cen- world prominence is similar to that of Energy Policy Act allows the Federal Electric ter. The ability to tap more resources Korea and Japan, China will consume Regulatory Commission (FERC) to preempt with fewer wells provides a public ben- 20 million barrels per day in less than state siting authorities when it is determined efit for environmental protection. 10 years. that a high-voltage power line is of ‘‘national The bill contains a study on LIHEAP The last big oil discovery was 30 significance,’’ and overrides state authorities reform. Providing energy assistance to years ago in the North Sea. China is when expanding or siting new liquefied natural families in cold and hot weather is a trying to buy oil companies in Canada; gas (LNG) terminals. In our own Long Island public necessity, and I thank the gen- India is trying to buy oil companies in Sound just off Connecticut, this is a very real tleman from Michigan (Mr. DINGELL) Russia; the present world production possibility. While energy security is a national and the gentleman from Texas (Chair- capacity is 83 million barrels a day; issue, it seems to me the communities who man BARTON) for accepting two new and we are running an estimated 81.5 will live with these siting decisions deserve a amendments, one which would require million today, which means we are in voice in the process. the Department of Energy and the Na- the red zone. The 14 largest oil fields in Finally, I strongly oppose opening the Arctic tional Cancer Institute to conduct a the world are 40 years old. Once they National Wildlife Refuge to drilling. We simply health assessment of those living in are taken out to 50 percent, water and won’t have a world to live in if we continue our proximity to petrochemical and refin- fluids need to be pumped to keep pro- neglectful ways. In my judgment, it would be ery facilities. duction at existing levels. We have far better to develop prudent and lasting alter- Many of my constituents live and some significant challenges. Support nate fuel energies than to risk irreparable work near these facilities. The commu- this bill. damage to the wilderness of one of North nities are concerned, and they deserve Mr. DINGELL. Mr. Chairman, I re- America’s most beautiful frontiers. Drilling in the most accurate health information serve the balance of my time. the Arctic will not fix our energy problems— about their community. Mr. BARTON of Texas. Mr. Chair- with so little oil available up there it couldn’t There is a lot to be said about this man, I yield for the purpose of a unani- possibly, as it will take a decade to get the oil bill. We have an energy bill for the first mous consent request to the gentleman down here. That time would be far better time in my 12 years in Congress. from Connecticut (Mr. SHAYS). spent developing clean, renewable energy

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00044 Fmt 7634 Sfmt 9920 E:\CR\FM\K20AP7.082 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2197 sources that will provide infinite energy without motes a greater refining capacity, and in- I was glad to see that my bipartisan imperiling our last remaining wilderness areas. creases the gasoline supply by stopping the amendment extending daylight saving I look forward to the day when we will have proliferation of expensive regional boutique time for 2 months was included in this an opportunity to vote for a fiscally-prudent, fuels. bill. Estimates show that it will save environmentally-responsible national energy Ending our dependence on foreign oil is not more than 100,000 barrels of oil for policy. Today is not that day. only important to the economy but also doubly every day that we extend daylight sav- Mr. BARTON of Texas. Mr. Chair- important to national security. Currently, the ing time. I want to remind my col- man, I yield 1 minutes to the gen- U.S. imports about 60 percent of its oil. The leagues that 2 years ago, we had a tleman from Florida (Mr. STEARNS), a Department of Energy projects this number blackout, an electric blackout through distinguished subcommittee chairman. will increase to 73 percent by the year 2025. much of the Midwest. In this bill we fi- (Mr. STEARNS asked and was given In order to ensure reliable and secure supplies nally impose reliability standards on permission to revise and extend his re- of oil, we have no choice but to increase the the electric industry so that, hopefully, marks.) domestic supply. that will not happen again. Mr. STEARNS. Mr. Chairman, here Another way H.R. 6 increases domestic pro- I want to say, too, as the cochair of we go again. As I said, this is the third duction of oil is by opening ANWR to oil and the Auto Caucus, it was important for time, and it should be a charm. gas exploration. USGS estimates that there is the chairman to agree to add $200 mil- We have passed this comprehensive between 5.7 and 16.0 billion barrels of oil that lion for hybrid and alternative fuel cell legislation before; and I know I speak is technically recoverable. This estimate does vehicles. We hope that the Senate leg- for a lot of my colleagues, probably on not take into account that with new tech- islation will even go more in terms of both sides of the aisle, that we should nology, the share will become higher. A re- incentives so that private consumers finally move forward after the large in- source of this magnitude cannot simply be ig- going to the showroom are going to be creases in gasoline. This is a timely nored. H.R. 6 goes a long way to end our reli- able to take advantage of those incen- piece of legislation. ance on foreign oil. tives to purchase those vehicles so that The Department of Energy predicts I once again urge my colleagues to support we can get those on the road. by the year 2025, U.S. oil and natural H.R. 6 and finally enact solid, comprehensive Mr. DINGELL. Mr. Chairman, I yield gas demand will rise by 46 percent with energy legislation for the American people. the balance of my time to the distin- energy demand increasing 1 percent for Mr. BARTON of Texas. Mr. Chair- guished gentleman from Virginia (Mr. every 2 percent in GDP growth. This man, I yield 1 minute to the gentleman BOUCHER). (Mr. BOUCHER asked and was given increase in demand at home, coupled from Ohio (Mr. GILLMOR), another dis- permission to revise and extend his re- with the explosion of demand world- tinguished subcommittee chairman. Mr. GILLMOR. I thank the gen- marks.) wide, has led to the increase in the cost Mr. BOUCHER. Mr. Chairman, I want tleman for yielding me this time and of crude oil. to thank the gentleman from Michigan for his great work on this bill. To combat this, and the resulting for yielding this time to me and com- Mr. Chairman, this country needs to record gas prices, the American people mend him on his outstanding leader- create a new energy landscape that be- today are looking for Congress to act ship with regard to the energy bill now gins shrinking our disproportionate re- and we are doing it. This legislation before us. contains a number of provisions that liance on foreign energy sources and I have supported the passage of com- would lower gas prices. H.R. 6 encour- begins building one that places Amer- prehensive energy legislation for the ages more domestic production of oil, ican ingenuity, producers and con- last two Congresses, and I rise in sup- promotes a greater refining capacity, sumers at the forefront. port of the measure that is before the and increases the gasoline supply by I want to highlight one provision and House this afternoon. While I do not stopping the proliferation of expensive that is the provision that significantly support all of the sections of the bill, regional boutique fuels. strengthens the important Leaking Un- there are a number of provisions in the derground Storage Tank program. The b 1530 energy measure that I believe will en- bill increases State funding from the hance our Nation’s energy policy and Mr. Chairman, I urge my colleagues LUST trust fund for States containing energy security. For example, the leg- to support H.R. 6 and finally enact a larger number of tanks or whose islation makes valuable improvements solid, comprehensive energy legislation leaking tanks present a greater threat in the area of energy efficiency and re- for the American people. to groundwater, it requires onsite in- newable energy and would make per- Mr. Chairman, here we go again. As they spections of underground storage tanks manent the Northeast Home Heating say, the third time’s the charm. This is the every 3 years, it institutes operator Oil Reserve. third Congress in a row we have tried to pass training requirements for tank owners Of particular interest to me is the comprehensive energy legislation. I know I and operators, and the legislation al- title on coal which would provide for speak for many of my colleagues in saying I lows States to stop deliveries of fuel to the implementation of the Clean Coal hope we can finally move forward and enact noncompliant regulated tanks in order Power Initiative to develop projects this very important and increasingly timely leg- to achieve legal enforcement. that would utilize clean coal tech- islation. These are all strong recommenda- nologies. The coal title also provides As we all know too well, energy is the life- tions not only made by the General Ac- for the clean air coal program to en- blood of the economy. The availability of en- counting Office, but they have also hance the deployment of fully devel- ergy at reasonable prices is key to economic been previously passed by the House. oped clean coal technologies. Coal is growth and stability. Comprehensive national They are proenvironment, antipolluter our Nation’s most abundant natural re- energy policy must ensure affordable, reliable provisions. I urge their support and the source for energy production, and it is energy and also promote national security. support of the bill. appropriate that we take steps to ac- H.R. 6 does that and I urge all my colleagues Mr. BARTON of Texas. Mr. Chair- complish the goal of incenting coal use to support it. man, I yield 1 minute to the gentleman and thereby relieving to some extent The Department of Energy predicts that by from Michigan (Mr. UPTON), another the pressure that we are experiencing the year 2025, U.S. oil and natural gas de- distinguished subcommittee chairman. at the present time on natural gas mand will rise by 46 percent, with energy de- (Mr. UPTON asked and was given prices. The Clean Air Coal Program mand increasing 1 percent for every 2 percent permission to revise and extend his re- would help to advance that objective. growth in GDP. This increased demand at marks.) The electricity title in the energy home, coupled with an explosion of demand Mr. UPTON. Mr. Chairman, yes, we bill contains some beneficial provi- worldwide, has lead to an increase in the cost have an energy crisis, and the sad sions, and I particularly want to call of crude oil. To combat this and the resulting thing is that it did not start this year, attention to the smart metering title record gas prices, the American people are but neither did this bill which started which I proposed 2 years ago in order looking to Congress to act. more than 4 years ago. Maybe with gas to accelerate the deployment of real- This legislation contains a number of provi- prices hovering near $2.50 a gallon, we time metering. When consumers have sions that would lower gas prices. H.R. 6 en- can finally get this bill to the Presi- knowledge of the savings they can real- courages more domestic production of oil, pro- dent’s desk. ize by using appliances during offpeak

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00045 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.032 H20PT1 H2198 CONGRESSIONAL RECORD — HOUSE April 20, 2005 hours, the peaks can be flattened and reform our electricity grid. It looks to are the basic building blocks of our the utilities can avoid the necessity of the future in the hydrogen fuel initia- technological edge. having to build some very expensive tive and the clean coal technology. In closing, I want to thank the lead- new generating facilities. While it is not a panacea, it is a bill ership of the Committee on Science I am pleased that during the last that is right for this country. It is and my colleagues on the committee Congress, we were able to reach a com- right to pass it at this time and send it for their contributions to the develop- promise which is also reflected in the to the other body so that we can go to ment of the provisions in the R&D title bill before us today regarding the ap- conference later this summer and put a of H.R. 6. plication of section 210 of PURPA, and bill on the President’s desk. Mr. Chairman, I reserve the balance the legislation contains the non- I would urge a ‘‘yes’’ vote on final of my time. controversial and much-needed section passage after all the amendments have Mr. GORDON. Mr. Chairman, I yield that would make transmission reli- been debated tomorrow afternoon. myself such time as I may consume. ability standards mandatory. Mrs. BIGGERT. Mr. Chairman, I First I would like to thank the gen- I am concerned, however, that the claim the time on the majority side for tleman from New York (Mr. BOEH- bill before us includes a provision that the Committee on Science. LERT), chairman of the Committee on would cap spending on the implementa- The Acting CHAIRMAN. The gentle- Science, and the gentlewoman from Il- tion of the reliability standards. I am woman from Illinois is recognized. linois (Mrs. BIGGERT), chair of the Sub- concerned about that and would hope Mrs. BIGGERT. Mr. Chairman, I committee on Energy, for their hard that when this measure becomes law, yield myself 3 minutes. work and cooperation in developing the enough money will be available for As chairman of the Science Sub- foundation of Title IX, the R&D title of adequate enforcement. committee on Energy, I rise today in this bill. I also remain concerned about the strong support of H.R. 6, the Energy A stable domestic energy supply is total repeal of the Public Utilities Policy Act of 2005, particularly those essential to the economic well-being Holding Company Act without ensur- provisions that originated with the and security of our Nation. While the ing that adequate consumer protec- Science Committee and are now con- bill on the floor today has provisions tions remain in place. And I have not tained in Title IX of the bill, the Re- that are not acceptable to many Demo- been convinced that there is a need to search and Development title. crats and Republicans, there are good give the Federal Energy Regulatory H.R. 6 represents a good investment points worth mentioning in Title IX. Of Commission the ultimate authority to in advanced, cutting-edge energy tech- particular note are the provisions en- site transmission power lines. nologies to expand and diversify our suring greater DOE cooperation with I support the legislation and I en- energy supply, meet growing demand the smaller colleges and universities courage my colleagues to vote for it. I and reduce the environmental impact who will train our next generation of want to conclude these remarks by of energy production and use. The only scientists, mathematicians, techni- complimenting again the gentleman changes to the R&D title from the cians and teachers. The Department, as from Michigan (Mr. DINGELL) on his 108th Congress are ones that reflect the well as the traditional large research outstanding leadership and also com- latest research, the emergence of inno- universities, could benefit from the plimenting the gentleman from Texas vative technologies and new ways of enormous pool of talented researchers (Mr. BARTON) of the Committee on En- thinking about our power problems. in the Nation’s smaller colleges and ergy and Commerce. He was willing to Most noteworthy is a pilot grant pro- universities, and I encourage greater work in a bipartisan fashion in order to gram to encourage the design and con- collaboration. establish consensus on a number of struction of energy-efficient buildings I would also like to highlight the these measures. I applaud him for that that demonstrates new efficiency tech- work of several of our Members on key willingness and for the effective work nologies. Also worth mentioning are components of DOE research and devel- that he has done in bringing this meas- two new additions to the subtitle on re- opment in Title IX: ure to the floor. newable energy R&D. The interest of the gentleman from Mr. Chairman, I encourage the pas- First is a grant program for States to California (Mr. HONDA) in the progress sage of the bill. support the development and dem- of the Next Generation Lighting Initia- Mr. BARTON of Texas. Mr. Chair- onstration of solar technologies na- tive, the Stanford linear accelerator man, I yield myself the balance of my tionwide. Second, the bill requires the and the Joint Genomics Institute and time. Department to work with industry to his work with the gentleman from Con- The Acting CHAIRMAN (Mr. create biorefinery demonstration necticut (Mr. LARSON) on transit bus LATHAM). The gentleman from Texas is projects. As a result, this bill does demonstrations of fuel cells; recognized for 1 minute. more for renewable energy R&D than The continued dedication of the gen- Mr. BARTON of Texas. Mr. Chair- any other energy bill previously con- tlewoman from California (Ms. WOOL- man, I want to compliment the mem- sidered by the House. SEY) and the gentleman from Colorado bers of the Committee on Energy and The bill also recognizes that ad- (Mr. UDALL) to clean, renewable and ef- Commerce on both sides of the aisle for vanced energy technologies do not ficient energy technologies; the way we prepared this legislation. It grow on trees. Instead, they grow out The work of the gentleman from Illi- was reported out of committee 39–16 of basic scientific research like those nois (Mr. COSTELLO) to ensure that uti- last Wednesday night after a 31⁄2-day that are supported by the DOE at our lization of our vast coal resources only markup. Every amendment that was universities and national laboratories. gets cleaner and more efficient; offered that wanted to be voted on and That is why H.R. 6 increases authorized The vision of the gentlewoman from considered was. funding to the DOE Office of Science California (Ms. ZOE LOFGREN) in sup- Most of the members who have spo- which supports over 40 percent of basic port of domestic fusion energy research ken in opposition to the bill on the research in the physical sciences, more and international fusion projects; floor from the Committee on Energy than any other Federal agency. This The work of the gentleman from Ten- and Commerce had amendments that funding will support basic fusion re- nessee (Mr. DAVIS) to ensure good were accepted in committee. I think search and greater use of supercom- science continues at Oak Ridge Na- every member that has said something puters for energy applications, as well tional Laboratory, particularly in the negative about the bill actually got as systems biology research and the area of high-end computing; something in the bill, and yet it was construction and operation of sci- The efforts of the gentleman from not exactly the way they wanted it in entific facilities like the rare isotope North Carolina (Mr. MILLER) to estab- terms of the total package, so they are accelerator. lish a nationwide network of advanced obviously reserving their right to vote America cannot hope to compete in energy technology transfer centers to against the bill. the world economy based on labor get technologies off the laboratory It is a fair and balanced bill. It helps costs. Our competitive strength is the shelf and into the marketplace; the existing conventional resources. It depth of our ingenuity and technology, Finally, the tireless commitment of also has a title on conservation. It will and the science programs in this bill the gentlewoman from Texas (Ms.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00046 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.086 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2199 JACKSON-LEE) to research and develop- omy has estimated that this year’s en- single largest factor that contributes ment at historically black colleges and ergy bill would not save a single barrel to our lack of national security. It is universities and other minority-serving of oil by 2020. time we stopped all efforts to drill in institutions. That is both tragedy and farce. We ANWR because this is only a stop-gap The Committee on Science contrib- know how to treat our oil addiction. measure. Instead, we need real energy uted virtually all of Title IX, the re- We can make appliances more energy independence, and that will only come search and development title of this efficient without inconveniencing any- when we start focusing our efforts as a bill. While research and development one. We can make our cars more effi- Nation on clean, renewable sources of programs typically have not been con- cient without sacrificing safety. My energy, conservation, and efficiency. It troversial, I believe the Title IX provi- CAFE amendment would reduce oil would be hypocritical for anyone who sions represent a major part of this leg- consumption in 2020 by 2 million bar- cares about our Nation’s well-being to islation. The R&D programs authorized rels a day. That is more than twice the vote for this legislation. I urge my col- in this bill will provide the means to amount that is expected per day from leagues, join me, vote against it. produce energy that this country will drilling in the Arctic National Wildlife Mrs. BIGGERT. Mr. Chairman, I need for the foreseeable future. Refuge. yield 2 minutes to the gentleman from Mr. Chairman, I reserve the balance What does this bill do instead of try- South Carolina (Mr. INGLIS), a member of my time. ing to make us more energy efficient? of the Committee on Science. Mrs. BIGGERT. Mr. Chairman, it At a time of fiscal crises and record oil Mr. INGLIS of South Carolina. Mr. gives me great pleasure to yield 5 min- prices, the bill provides new mandatory Chairman, I thank the gentlewoman utes to the gentleman from New York spending that will go directly to the oil for yielding me this time. (Mr. BOEHLERT), the illustrious chair- industry, and it provides mandatory Mr. Chairman, I agree with the chair- man of the Committee on Science. breaks for the oil industry on royal- man of the Committee on Science. We (Mr. BOEHLERT asked and was given ties. have an opportunity to do better. permission to revise and extend his re- The bill provides massive tax breaks I hope that we do better as we im- marks.) for profitable oil companies and next prove the hydrogen title of this bill. Mr. BOEHLERT. Mr. Chairman, with to nothing for new technologies that Perhaps the other body will have a great regret, but with even greater could help wean us from foreign oil. title that will work a little bit better conviction, I rise in opposition to this Here is what the President said last in the hydrogen area, and I hope that bill. While this bill certainly has some week on that issue: ‘‘With $55 oil we we will catch the vision of a different worthy provisions, including those re- don’t need incentives to oil and gas way of getting around. ported out by our committee, overall companies to explore.’’ The President’s Imagine that one takes delivery this bill is a step backward. This bill budget devoted 72 percent of its pro- today in Spartanburg, South Carolina will not lessen our dependence on for- posed energy tax incentives to alter- of a brand new BMW. It runs on hydro- eign oil, and it will do nothing to re- natives. This bill provides just 6 per- gen. It is powered and controlled by a duce energy prices. It will increase the cent to alternatives while providing computer, maybe made by IBM, maybe deficit, weaken our economy, com- more than a billion dollars in addi- software by Microsoft. These are com- promise our national security and en- tional tax breaks. panies committed to making hydrogen danger our environment. We would not have to look far to and to making smart cars work. They The supporters of this bill are cer- come up with better ideas. While the get in the car, they program it to go tainly right about one thing. We des- House has been writing a bill based on somewhere, they take their hands off perately need a good national energy ideological purity rather than careful the wheel. It seems like science fiction, policy. This measure does not pass that analysis, others have come forward but the good news is that we on the test. with bipartisan, sensible balanced ap- Committee on Science are in the busi- proaches to energy policy. Groups like ness of making science fiction into re- b 1545 the National Commission on Energy ality, and it is not that far away. Our growing dependence on foreign Policy and the Alliance to Save Energy If we can make a commitment like oil puts us at the mercy of unstable and the Energy Future Coalition have we made when we decided to go to the and unfriendly foreign regimes. It gives all offered carefully considered pro- Moon, we can get there. We as a Nation terrorists additional targets and puts posals that could have formed the basis can decide that now is the time to real- money in their hands. It weakens the of an effective bill with Republican cre- ly commit to forging ahead to create a dollar by worsening the balance of dentials. hydrogen economy. Now is the time to trade. We would start every day $500 But instead, we have decided to close be spending good money on that. It is million-plus in the hole on our balance our minds and open our purse in a way time to stop simple spending and start of trade because of the imported oil. It that will harm taxpayers and con- thoughtful investing. There is a big dif- pumps money out of the domestic econ- sumers and weaken our economic ference. In this bill we have the oppor- omy and into the hands of those who health and national security. tunity to do just that, to invest serious would wish us ill. We can do better. We ought to do bet- money in the technology that can lead In short, our oil dependence rep- ter. We have an obligation to do better. us to a hydrogen economy. If we do resents a significant and growing Let us defeat this bill and start over. that, we will do good work for the threat to our national security, and na- Mr. GORDON. Mr. Chairman, I yield American people and we will lessen our tional security should be first and fore- 11⁄2 minutes to the gentlewoman from dependence on Middle Eastern oil. most in the minds and hearts of every- California (Ms. WOOLSEY). And, by the way, it is also about jobs. one in this Chamber. Ms. WOOLSEY. Mr. Chairman, the If we can retool the automobile and So what do we do to reduce our de- chairman of the Committee on Science make it so that we not just develop the pendence on foreign oil? Yes, we need knows what is right. The energy bill technology but also produce it here, we to increase the supply of fossil and nu- before us today is bad for the con- can tremendously expand the economy clear and renewable energy. sumer, bad for the environment, and it of the United States, providing jobs But most importantly, we need to be- does not make us energy independent. and, while doing that, cleaning up the come more energy efficient. And does In fact, it is the ultimate reason we are environment and reducing the oil pres- this bill do to make us more energy ef- insecure as a Nation. sure on the Middle East. That is a ficient? Virtually nothing. In fact, by promoting the interests of trifecta. Let us get about it with a bet- The Federal Energy Information Ad- corporations over consumers and pollu- ter title. ministration found that last year’s en- tion over conservation, this bill makes Mr. GORDON. Mr. Chairman, I yield ergy bill would have almost no impact the United States much less secure. 21⁄2 minutes to the gentleman from on energy demand and energy prices; H.R. 6 will harm more than just our California (Mr. HONDA). and that bill, if anything, made more environment, however. America’s con- (Mr. HONDA asked and was given of an effort to tame consumption. The tinued reliance on Middle East oil for permission to revise and extend his re- Alliance for an Energy Efficient Econ- the majority of our energy needs is the marks.)

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00047 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.088 H20PT1 H2200 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Mr. HONDA. Mr. Chairman, there are H.R. 6 technically does not violate the Nation to give them extra training and very few things I like about this energy Budget Act because it is an unreported bill, resources to assess the availability and bill. However, I do support title IX, and and Budget Act points of order generally only viability of bioenergy. But it is impor- I am proud to be the ranking member apply to reported bills. The bill generally is in- tant that, although this legislation of the Committee on Science’s Energy consistent with the 302(a) allocations for both may not be all that we want it to be, Subcommittee, which authored this the 2005 and House-passed 2006 budget res- the very fact that there is going to be portion of the bill. olutions. Section 2053 of the bill does, how- a review of electricity and trans- We have included such beneficial pro- ever, create a new entitlement program out- mission is important, the very fact grams as energy efficiency and renew- side the budget window (specifically, FY that we acknowledge the high cost of able energy research and development 2016). It uses a portion of outer-continental re- gasoline, even though I might say to in the areas of solar, wind, geothermal, ceipts to fund new mandatory state-run con- my distinguished friend from Ten- bioenergy, and other alternative en- servation, education, and infrastructure pro- nessee I offered an amendment that ergy sources that will be critical to our grams. Estimates indicate that the annual cost might determine why there is such an future energy independence. of this provision could be in the range of $1.75 increase in gasoline prices, why the Also included are research programs billion. If H.R. 6 were a reported bill, such a transportation costs are so high, and of into distributed energy and electric en- provision might subject the bill to a section course that was not allowed. ergy systems, which will make us less 303 point of order. b 1600 reliant on fragile transmission grid, We just passed a Budget only after clari- and the next generation lighting initia- fying a point of order would defeat any Appro- But we will have a number of debates tive, which will reduce future demand priations bill over Budget. dealing with the price of gasoline. for electricity through efficiency. It appears that we have to expand this point This is not a ‘‘get-you’’ time in We have also increased support for to protect against bills like this. America. This should not be, We get the basic sciences at the Department of Mr. GORDON. Mr. Chairman, I have the industry or we get the consumer. Energy generally and focused on sev- no further requests for time, and I This needs to be a time when we sit eral programs in particular, such as yield back the balance of my time. down and reconcile over these very nanotechnology research and develop- Mrs. BIGGERT. Mr. Chairman, I frightening issues. ment, advanced scientific computing yield myself such time as I may con- I want jobs in my community. I want research, and fusion energy sciences. sume. a thriving energy industry. In fact, I It is a credit to the collegial bipar- In closing, I express my appreciation had an initiative that would report on tisan nature of the Committee on for the leadership of the Committee on the deposits in Texas and Louisiana Science members and staff that all of Science and my colleagues on the com- offshore so that we could be more inde- these important provisions are in- mittee for their contributions to the pendent of foreign oil and do more do- cluded in a product that both sides of development of the provisions in the mestic drilling in a safe and environ- the aisle can support. There is so much R&D title of H.R. 6. They are bipar- mentally manageable way. agreement that I do not have any tisan, forward thinking, balanced, and This bill today will allow us to de- amendments to offer here today; and as speak to the importance that we as a bate these questions. a side bar, I would like to also com- Congress place on the role of tech- Am I disappointed? In some sense, mend the gentleman from New York nology in our energy future. yes, that global warming is not men- I would also express my appreciation (Mr. BOEHLERT), chairman; and the tioned, that more of the environmental for the extremely professional staff of gentleman from Tennessee (Mr. GOR- emphasis is not mentioned; but if we do all the relevant committees, as well as DON), our ranking member, for this not move from point A to point B to the key leadership staff who worked kind of collegial activity. point C to have a real energy policy, Unfortunately, I cannot say the same diligently on this bill for months and there will be no way, if you will, to en- thing about the rest of the bill. Drill- in some cases years. I want to thank sure for the American people a safe and ing in the Arctic National Wildlife Ref- the able staff of Committee on Science secure America. uge and liability waivers for producers and its Energy Subcommittee. Their It is a question of energy security. I of MTBE are not going to reduce gas contributions and those of countless would ask my colleagues to consider prices today and are not steps toward a others have resulted in a better bill this legislation as we move forward. sustainable energy future. And in con- which I urge my colleagues to support. Mr. Chairman, I speak today with mixed Mr. Chairman, I yield back the bal- trast, the bill does not address increas- emotions. While I realize the importance of ance of my time. having a comprehensive energy bill, I am con- ing fuel economy standards, which is a Mr. GORDON. Mr. Chairman, I ask cerned that the bill does not do enough. concrete step we can take to reduce en- unanimous consent to take back the Please do not misunderstand me, there are ergy consumption. balance of my time for the purpose of good aspects to the bill. For example, the bill Even President Bush, an oil man, ad- yielding time to the gentlewoman from mits that with $55 a barrel of oil, we do provides for much needed advances in Energy Texas (Ms. JACKSON-LEE). Efficiency, Renewable Energy, and Nuclear. not need incentives for oil and gas The Acting CHAIRMAN (Mr. However, there is still much work to be done. companies to explore. He recently said, LATHAM). Is there objection to the re- To this end, I plan to offer an amendment and ‘‘There are plenty of incentives. What quest of the gentleman from Ten- work with Members, and industry with hopes we need is to put a strategy in place nessee? that will help this country over time There was no objection. of improving upon some key aspects of the become less dependent.’’ Mr. GORDON. Mr. Chairman, I yield bill. This bill does not do enough to make 2 minutes to the gentlewoman from Before going any further, I think it is impor- this Nation less dependent on energy, Texas (Ms. JACKSON-LEE). tant to touch upon the question everyone is be it from imported or domestic Ms. JACKSON-LEE of Texas. Mr. asking, ‘‘Why Are Gas Prices So High?’’ sources. We need a bill that focuses on Chairman, I thank the distinguished Whether right or wrong, the common answer our long-term future needs, not one gentleman for yielding me this time. has been that supply is not able to keep up that is stuck in the past. First of all, I am grateful that the with demand. According to recent studies, I urge my colleagues to oppose this Committee on Science had an oppor- overall prices are rising because of the razor- bill. tunity to provide insight into this leg- thin supply and demand balance in the global Mrs. BIGGERT. Mr. Chairman, I islation. crude oil market (i.e. the increase demand for yield for the purpose of making a unan- I have an amendment that I will be oil in China and India has played a major role imous consent request to the gen- discussing later on in the day that in driving up oil prices around the world). In tleman from Illinois (Mr. KIRK). speaks to the purpose of my standing addition, the situation in Iraq has not helped. (Mr. KIRK asked and was given per- today in general debate, and that is to Unfortunately, there seems to be no end in mission to revise and extend his re- make, I think, the declaration that we sight to this problem. marks.) clearly need to have an energy policy. According to the Energy Information Admin- Mr. KIRK. Mr. Chairman, I am concerned My amendment will engage farmers istration, EIA prices in 2005 are projected to this bill will not clear the Budget responsibility. and ranchers in Texas and all over the remain high, at an expected average of $2.28

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00048 Fmt 7634 Sfmt 9920 E:\CR\FM\K20AP7.090 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2201 per gallon for the April to September summer an increasingly older and longer living popu- I urge all of my colleagues to support season, 38 cents above last summer. Similar lation the world has become increasingly the passage of this legislation that will high motor gasoline prices are expected smaller, integrated and interdependent. allow us to capitalize on our Nation’s through 2006. Monthly average prices are pro- As with all change, current national and energy exploration and development jected to peak at about $2.35 per gallon in international transformations present both dan- technology, commitment to environ- May. Summer diesel fuel prices are expected gers and opportunities, which must be recog- mental quality and conservation, and to average $2.24 per gallon. As in 2004, the nized and seized upon. Thus, the question work ethic to develop our domestic en- primary factor behind these price increases is arises, how do we manage these changes to ergy resources. crude oil costs. protect the disadvantaged, disenfranchised The CHAIRMAN. Pursuant to the In the United States, additional changes in and disavowed while improving their situation rule, the gentleman from West Virginia gasoline specifications and tight refinery ca- and destroying barriers to job creation, small (Mr. RAHALL) is recognized for 10 min- pacity can be expected to increase operating business, and new markets? utes. costs slightly and limit supply flexibility, adding One way to address this issue is to ensure Mr. RAHALL. Madam Chairman, I further pressure on pump prices. Despite high that this Nation becomes energy independent yield myself such time as I may con- prices, demand is expected to continue to rise through the full utilization of energy sources sume. due to the increasing number of drivers and within our Nation’s geographic influence. Be- I rise in opposition to the pending vehicles and increasing per-capita vehicle fore concluding, let me say that as legislators, legislation, surprise, because it will do miles traveled. we must boldly define, address and find solu- absolutely nothing to lower the price While these may be the facts, it does not sit tions to future energy problems. We know that of motor fuel and reduce America’s de- well with my constituents back in Texas, and the geological supply of fossil fuel in not infi- pendence on foreign oil. for that matter with all Americans. Thus, as nite, but finite. We know that our Nation’s best This legislation is antitaxpayer, the bill moves along the legislative process, I reserves of fuel sources are in the forms of anticonsumer, and antienvironmental. will be working with Members and industry to coal and natural gas, among others. It is social security for the oil indus- establish a sense of the Congress that the I would only caution my colleagues, admin- try. We have before us a bill that squanders what could have been a bold Secretary of Energy, acting through the Ad- istration officials, academics, industry leaders, stroke for American energy independ- ministrator of the Energy Information Adminis- environmental groups and consumers not to ence. It could have been visionary, and tration, should commence an immediate inves- assume that we have learned all that is there it could have been daring in developing tigation on the causes of high gasoline prices is to know about energy extraction, refining, new energy technologies and fuel in the United States and, in collaboration with generation, or transportation but that we are sources. the petroleum industry and the Congress, de- still learning. We must bring to this debate a vigor and vitality that will enliven our efforts to Instead, we have before us a bill velop a solution to such prices. At the rate we which contains a litany of various tax are going, the average American will not be not have a future of energy have and have nots, due to out of control energy demand with breaks and polluter protections for en- able to afford to drive. ergy producers who are already experi- It is important for me to mention that I will few creative minds working on the solution to encing record profits at the expense of also work with Members of Congress to en- this pressing problem. The CHAIRMAN. Pursuant to the the American public. courage the Secretary of the Interior, in con- rule, the gentleman from California The bill contains $8 billion in tax sultation with other appropriate Federal agen- (Mr. POMBO) is recognized for 10 min- breaks, largely for well-heeled oil and cies, every 2 years, to transmit a report to the utes. gas conglomerates who are already Congress assessing the contents of natural Mr. POMBO. Madam Chairman, I milking our constituents at the pump. gas and oil deposits at existing drilling sites off yield 2 minutes to the gentleman from In the Resources title alone, CBO says the coasts of Louisiana and Texas. It is impor- Nevada (Mr. GIBBONS), the sub- there is nearly a half a billion dollars tant that we do our best to become an energy committee chairman. of direct spending to subsidize the oil independent Nation. This can only be done Mr. GIBBONS. Madam Chairman, I and gas industry over the next 10 years. through the full utilization of energy sources rise in strong support of H.R. 6. To put it bluntly, if the taxpayer is within our Nation’s geographic influence. Cur- For too many years, Madam Chair- feeling the pain of an energy crisis, it rently, most if not all, of the nations we import man, our domestic energy policy has is coming from the derrick sticking out oil from are either directly or indirectly hostile languished, driving investment over- of his back pocket, and this measure towards the U.S. Many of these nations pro- seas and increasing our reliance on for- does nothing to ease it. vide funding to terrorist groups who oppose eign energy resources. Yet, we con- Even President Bush recently stated, the U.S. and at any time could decide not to tinue the cycle of tolerating irrespon- ‘‘I will tell you, with $55 oil, we don’t sell oil to us. Where would that leave us? It is sible energy policies, continuing to dis- need incentives to oil and gas compa- important that we know what we have right courage investment in domestic energy nies to explore. There are plenty of in- hear at home. The aforementioned two-year production and, subsequently, becom- centives.’’ These are President Bush’s assessment would allow an inventory of exist- ing more dependent on foreign sources own words. ing oil and gas supplies and an evaluation of of energy. But has that stopped the Republican techniques or processes that may exist in Relying on foreign and, sometimes, majority from bestowing such largesse keeping those wells protected. hostile nations for energy and minerals on some of their biggest benefactors? Needless to say, I represent residents and jeopardizes our national security, Of course not. Because when one pulls businesses that call the 18th Congressional Madam Chairman. And for the safety the curtain aside on this bill, what we District of Texas their home. Energy and en- and security of our homeland, I want find is a wacky old fellow pulling the ergy related companies and dozens of other the United States to be reasonably self- manipulating levers, reaching deep exploration companies are the backbone of sufficient in meeting the demands of into the Treasury and deep into the the Houston economy. For this reason, the our current energy consumption. pockets of ordinary Americans. 18th Congressional District can claim well-es- H.R. 6 makes strides in ensuring our This bill, as I said, could have been a tablished energy producing companies and domestic security by streamlining the bold stroke, but it missed that mark. It suppliers as well as those engaged in renew- permitting process for renewable and ignores coal, America’s most abundant able energy exploration and development. traditional sources of energy, while energy resource. It pays mere lip serv- I believe that the effects of rising energy protecting the integrity of the environ- ice to coal. There is nothing here that prices have had and will continue to have a mental review process. H.R. 6 also con- would actually encourage an electric chilling effect on our Nation’s economy. Every- tains provisions to spur production of utility to install or invest in clean coal thing we as consumers eat, touch or use in renewable energies such as geothermal technology. There is nothing here that our day-to-day lives have energy costs added so we can reduce our reliance on tradi- would advance bona fide technologies into the price we pay. Today, our society is in tional sources. for coal gasification or liquefaction to the midst of major sociological and technical Through this important legislation, run our factories and vehicles. revolutions, which will forever change the way we will have increased ability to utilize And, to add insult to injury, the sin- we live and work. We are moving from a pre- the vast renewable energy resources on gle substantive coal provision in this dominantly industrial economy to an informa- our public lands in an environmentally bill favors Western Federal coal, pri- tion-centered economy. While or society has responsible manner. marily in the Powder River Basin of

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00049 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.077 H20PT1 H2202 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Wyoming, over all other coals. It would For instance, natural gas in this Na- minimize our dependence on foreign give Federal coal from that region an tion is hovering in the $7 range, but if oil. That is not this bill. artificial, competitive advantage to we look over in the Asian areas and in Rather than placing too much of our the detriment of coal producers and Russia, it is 95 cents and 70 cents. What emphasis on new oil supplies, we would consumers in other States. Already, is happening is that we are outsourcing build a national energy policy that is this Western coal has infiltrated util- jobs to those other nations because based upon the strength of our country, ity markets traditionally served by Ap- they are paying one-tenth the price for rather than its weaknesses. Those palachian and Midwestern producers. natural gas that we are paying here, strengths are the marketplace, innova- To now provide these producers of Fed- and yet our friends on the other side of tion, technology, and capital. If these eral coal with special treatment in the the aisle some days want to talk about economic forces were truly unleashed form of relief from competitive bidding outsourcing jobs and the horrific effect to provide a national energy policy, the and the payments of royalties is un- that it has on the economy; and today role of coal and oil would be greatly di- seemly and has no part in what is sup- we are doing something factual about minished and would still be important, posed to be a national energy policy it, and yet they want to turn an eye but diminished. bill. and say, That is okay, send those jobs; America’s energy policy would evolve It is, in effect, a direct assault upon we probably did not need them to start into one where business decisions, cap- all other coal, including coal from my with. ital allocations, research commit- home State of West Virginia, and it is They would have us believe that ments, and environmental policy would a direct assault on consumers, jobs, what we are facing and what we are coincide to make businesses more effi- and the economy and the communities giving is simply a handout to the oil cient and productive, develop new prod- which rely on coal from States like companies, and what we are doing is ucts and services, would expand and West Virginia who are not given spe- simply trying to develop new sources of cover the environment, would be easier cial treatment under this provision. oil that is extremely expensive to and less expensive and clean. Yet, under the rule governing debate reach. We are drilling on some offshore Such a policy demands a synergy of on this bill, I was denied the ability to platforms that cost billions of dollars most parts of national energy policy. offer an amendment to strike this pro- to set in place. We are drilling on those To date, these ideas have been treated vision, an effort that came very close with great risk that we will lose as a stepchild, as they are in this bill. to succeeding when the House last con- money, and what we are simply saying To do so, the Congress would have to sidered this bill. Could it be that be- is that deep well incentives should be stop thinking about energy policy as cause I came so close to knocking it in place. an extension of the past. They would out of this bill on the House Floor of Now, the incentives that are in place have to think about it as going out to the last Congress I was denied that op- for onshore production are either very embrace the future, with American portunity this year? Could it be be- difficult areas to drill in or the incen- technology, American ingenuity, cause the Republican leadership fears tives only kick in after the price falls American talent, American capital, debate on this provision and will only to a certain level. and the American marketplace. Amer- allow amendments that they can bet Madam Chairman, it is time for us to ica should go out and embrace the fu- the House will fail to pass? All of this, pass an energy bill. The consumers in ture, rather than dumping billions and all of it is why every newspaper in my this Nation depend on it, and they are billions of dollars into trying to bring congressional district that has edito- depending on Republicans because our the past a little bit further forward, to rialized on this bill has editorialized friends on the other side of the aisle bring the fossil fuels a little bit further against this bill. refuse to help. forward. We are engaging in an exercise of Mr. RAHALL. Madam Chairman, I That is the mistake of this bill, that microwave legislating today. The Re- yield 4 minutes to the distinguished is the tragedy of this bill, and that is publican leadership has hauled out the gentleman from California (Mr. the missed opportunity. That is the remains of last year’s freeze-dried en- GEORGE MILLER), the distinguished reason why this bill does so little for ergy bill and are seeking to warm it up former chairman of the Committee on the consumer. for yet another taxpayer-financed Resources. In fact, it harms the consumer at the feast. Mr. GEORGE MILLER of California. pump by increasing the price of gaso- The people of America will not be Madam Chairman, I thank the gen- line. That is why it is such a bad deal played for fools. They will not be made tleman for yielding me this time. for the taxpayer, because the taxes are to believe that all of our energy prob- This bill, first and foremost, should used for old production, for old ideas, lems will go away if we simply grant be rejected by this Congress, because it not for innovation, not for the future, misplaced and inappropriate tax cuts is very bad for the consumers, it is a and not for a sustainable energy policy. to energy fat cats, and if we allow pol- very bad deal for the taxpayers, it is That is why it is so bad for the environ- luters to get off the hook and short- lousy for the environment, and it cer- ment, because they use tax policy to change the health and safety protec- tainly does not do much for the Amer- drive environmental decisions that tions of our citizens. ican economy. otherwise would not be made and, of I urge a no vote on the bill. This bill is another missed oppor- course, that is why it is bad for the Madam Chairman, I reserve the bal- tunity to take America into the future, economy, because it continues our de- ance of my time. to take America into the leadership pendence. In fact, it drives us deeper Mr. POMBO. Madam Chairman, I around the world in energy production, into the dependence on the most unsta- yield 11⁄2 minutes to the gentleman energy innovation, and energy tech- ble countries in the world, into the from New Mexico (Mr. PEARCE), the nology; to create a new generation of hands of those countries that simply subcommittee vice chairman. important products, and a new genera- cannot provide stable environments for Mr. PEARCE. Madam Chairman, I tion of jobs. the production of those energy re- rise today in support of the energy bill But what this bill does not under- sources. that we are discussing on the floor. stand is that energy sufficiency and That is why a different policy would Madam Chairman, the absolute truth sustainability is very different from be about a sustainable energy policy, is that Americans are paying more at energy oil independence. The first is not trying to achieve oil independence, the pump today than ever before. Home achievable in the national interest and or foreign oil independence as this bill heating costs have escalated dramati- the other is not. Oil independence is does. It is unfortunate, because what cally. These things are both reflections not achievable in this bill or in any bill we do is we miss the opportunity to of the lack of an energy policy. All we you can bring to the floor. bring about what the best and the are suggesting in this energy bill is If we were really seeking to strength- brightest prospects of America have al- that we need to recognize the dynamic en America’s hand with respect to en- ways offered, and that is new innova- forces that are at play in today’s econ- ergy and our economy, we would do all tion, new technologies, new discov- omy, and that we need to take steps to that is possible to develop a national eries, new capital formation, and a new correct it. sustainable energy policy that would economy. But this bill does not do it.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00050 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.092 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2203 This bill resides in the past century. the continent of the United States from the Middle East or from midwest This bill resides with the old indus- where they just do not exist. We con- Wyoming? I know where I stand, and I tries. This bill resides with the old sume 25 percent of the oil; we have have a number of bills within this ideas, and it certainly resides with the only 3 percent of the world’s oil re- package that address domestic energy old and tired subsidies that milk the serves. If you drill in Mt. Ranier Na- production. taxpayers, to turn around and give tional Park, the Arctic and Yosemite, It seems I have spent most of my them to now the most profitable com- the oil is not there; the dead dinosaurs congressional lifetime helping to de- panies in the American economy at decided to die somewhere else. velop this package, so I know a little this time. This is a doomed policy of searching bit about it. It will strengthen Amer- It is very unfortunate, and it should for dead dinosaurs. And it is a dino- ica’s standing as the Nation with the be rejected. saur-like philosophy that we should de- most strict environmental laws on b 1615 cide to subsidize technology being de- Earth. It will streamline the process to veloped in the late 1800s in 2005. We safely explore for new energy sources Mr. POMBO. Madam Chairman, I should be giving these subsidies to the and put us on the road to energy self- yield 11⁄2 minutes to the gentleman nascent wind, solar, wave power, en- sufficiency. from Pennsylvania (Mr. PETERSON). The opponents of this bill urge a Mr. PETERSON of Pennsylvania. ergy-efficient cars so we can build en- ergy-efficient cars here rather than in ‘‘no’’ vote because it is not a quick fix Madam Chairman, I think I am on a at the pump. Madam Chairman, since different bill than I just heard de- Japan. You do not give mother’s milk to a when does a quick fix actually fix any- scribed here. I applaud the energy effi- 65-year-old person; you give it to the thing? When does a ‘‘no’’ vote without ciency and conservation in this bill. I nascent infant industries that need it. an alternative actually fix anything? applaud the increasing of renewable That is not what happened to this bill, What America needs and what we have technologies in this bill. I applaud the where 94 percent of the subsidy goes to needed for a long time, for more than a hydrogen fuel cell program in this bill. an industry, the most profitable in generation, is a comprehensive energy I applaud the next-generation nuclear American history; one company had $8 plan. in this bill. I applaud the clean coal billion profit in the third quarter last I urge my colleagues to support the technology. year on your $55 a barrel oil. plan before us today. I applaud the incentives for deep gas Mr. POMBO. Madam Chairman, may That is what is going on in this bill. drilling. That is the one issue I do not I inquire as to how much time is re- What we should be doing is hearing les- think we do enough in this bill. I be- maining. lieve we need to do much more to in- sons from our successful past, where we The CHAIRMAN. The gentleman showed where we increase the effi- crease the supply of natural gas, and I from California (Mr. POMBO) has 31⁄4 hope in conference we can. ciency of our cars; that is an energy fu- minutes remaining. Current natural gas prices are ex- ture. We need the new Apollo energy Mr. POMBO. Madam Chairman, I porting thousands of American jobs, plan, a visionary high-tech plan, not a yield the balance of my time to myself. the best jobs we have, the chemical dinosaur-like plan. I guess here we go again. You know, plants, fertilizer factories, and those Mr. POMBO. Madam Chairman, I we have had the opportunity in the 1 who melt steel and ore and use a lot of yield 2 ⁄2 minutes to the gentlewoman House four or five times to debate the national gas. from Wyoming (Mrs. CUBIN), the full energy bill. And I look at the history of We as a country have an island to committee vice chairwoman. energy policy in this country and the ourselves with natural gas; they are Mrs. CUBIN. Madam Chairman, I rise efforts of Congress to try to deal with not world prices. When everybody pays today in strong support of H.R. 6, the the very real energy demands that we $50 for oil, we have the highest prices Energy Policy Act of 2005. have today in this country. for natural gas of all modern countries, Wyoming is often called the energy We are not providing enough energy and we are losing the companies who basket of America, but people in my to meet the demands that we have. You use large quantities of it. State who are taking out emergency know, you go back 30 years ago, and Just to compare, we are 40 percent loans just to fill up their pickup’s the United States was dependent on higher on natural gas than Europe. We tanks would not know it. In my home foreign energy about 30 percent. About are 50 percent higher than Japan. We town of Casper, gas is $2.10 a gallon; in 30 percent of our oil came from foreign are 600 percent higher than South Cheyenne it is almost $2.20. It is $2.30 sources. America. We are 800 percent higher in Riverton and $2.40 in Jackson. We did very little to deal with that. than Russia. We heat our homes, our Madam Chairman, that is just too There was a pledge made by then-Presi- schools, our hospitals, and our busi- much. Some of the people around the dent Carter that we were going to be- nesses with natural gas. country who pay close to $3 a gallon come independent. The President and It is the bridge to hydrogen. All hy- might think Wyoming’s prices are a succeeding Presidents have talked drogen today generally is made from bargain. But remember, Wyoming cov- about becoming independent from for- natural gas; it is the easiest way to ers almost 100,000 square miles. That is eign oil. But we did not adopt the kind make it. It can assist us in transpor- a lot of miles on the highway to do of policies that we had to to increase tation, with our buses, taxi cabs, deliv- business, and a lot of money at the gas the amount of domestic production so ery trucks, by using natural gas rather pump. that we were not so dependent on for- than oil. We need, in the final bill, to Wyoming cannot support subways or eign oil. have a much stronger chapter with mass transit when we do not have I look at it today and nearly two- natural gas; it is the one area that I masses in the first place. This spike in thirds of the energy that we consume think we need stronger in this bill. gas prices has real consequences for in this country comes from foreign Mr. RAHALL. Madam Chairman, I people in Wyoming whose drives to countries. And that is a direct result of yield the remainder of my time to the work are measured not by the length of the failure on the part of Congress to gentleman from Washington (Mr. INS- the country and western song on the pass a national energy policy. We have LEE), a valued member of our Re- radio, but by the entire country and not addressed that. I look at what we sources Committee. western album. are doing wrong in terms of producing (Mr. INSLEE asked and was given When our country was threatened by additional energy in this country. And permission to revise and extend his re- terror attacks on 9/11, Congress acted. I think if you listen to the debate from marks.) Now Congress is called upon to act some of my colleagues, you know what Mr. INSLEE. Madam Chairman, the again. To keep our economy sound in we are doing wrong. Yeah, you know, best way that I can characterize this Wyoming, we must pass this energy we did not have a lot of dinosaurs die bill is that it is a Jurassic Park bill in plan. under Yosemite or Yellowstone, you that it is about dinosaurs, of dinosaurs, This bill will cut our reliance on for- are right; but we had a whole heck a and in a sense by dinosaurs. eign energy and put our focus where it lot of them die in the Arctic plains. It depends on the hope that somehow belongs, on domestic production. There is oil and gas in Alaska. It is dead dinosaurs will appear underneath Would you rather get the oil we need there. We all know it is there. And yet

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00051 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.093 H20PT1 H2204 CONGRESSIONAL RECORD — HOUSE April 20, 2005 we still have the same people year amount. The majority focus is on the b 1630 after year after year coming down, infrastructure of this country, the elec- It delays protecting our children who whether gas is $20 a barrel or $60 a bar- tric power lines, gas collecting lines, suffer more and more from asthma as rel they are still opposed to doing it. and supporting a structure which will this bill delays enactment of stricter We have the same people come down be the backbone of our energy needs smog regulations. It delays protecting here year after year after year that op- clearly for the next quarter of a cen- our shorelines from oil and gas devel- posed putting a pipeline to move that tury before any of the innovative ap- opment. It delays cleaner air and lower gas from Alaska to the lower 48 States. proaches begin to carry a significant gas prices by mandating an agricul- We have the same people who come share of our energy needs. tural welfare program called ethanol. to the floor year after year and oppose I might also caution Members not to It delays the end of corporate welfare every single attempt that is made to get too carried away looking at this for the likes of Enron and Home Depot. increase the amount of energy pro- particular piece of legislation under It delays the ability of States to enact duced in this country. Year after year the heading of an energy bill and as- tougher energy efficiency laws. they oppose it. sume that we have done nothing since I could keep going, Madam Chair- Last year we had an amendment to the conference report that was agreed man, but I do not want to delay the make it easier to site renewable energy upon between the House and Senate proceedings any further. on Federal lands. And the same people was passed by the House and not the The bill was written by and for the that are down here today opposing this Senate. oil and gas industry with the involve- bill opposed that bill on renewable en- I would ask you to go back and refer ment of a small band of powerful Mem- ergy. Yeah, you know, it all sounds to legislation passed just a short time bers of Congress. Its very existence great. You can come down here and ago under the title of the Working raises questions of ethical behavior. talk about how we need more renew- Families Tax Relief Act. In that bill we But as we know, our Committee on able energy. had incentives for wind, open biomass, Standards of Official Conduct is unable But when you have a chance to vote electric cars, and alternative-fuel vehi- to meet to consider such transgressions for it, you vote no; and you do it every cles. because of delay by my colleagues on single time. You know, we hear this In the American Jobs Creation Act, the Republican side of the aisle which over and over again. we provided incentives for ethanol, bio- delay Committee on Standards of Offi- You know, when the bill moved diesel, geothermal, solar, open bio- cial Conduct action against one of through the committee, we had 20 or 25 mass, municipal solid mass, and re- their own. amendments. Not a single one of those fined coal. The purpose is not to enact a sane amendments was a partisan vote, a I know the other side is going to offer energy policy for our country at all. In party-line vote. Every single one of that constant lament, what have you fact, as I have outlined above, it delays them we had members of the minority done for me lately? The answer is, let that very possibility. It is an and majority that joined together to us get to conference, put together a antienvironment, anticonsumer, either pass or defeat the amendment. package, once again come to the floor antienergy self-sufficiency and irre- There was so much support for this bill of the House with a conference agree- sponsible corporate welfare bill. coming out of the Resources Com- ment, we will pass that conference Rather than considering this legisla- mittee, it passed on a voice vote. agreement, and the Senate will pass tion, we should be considering why Every time that we get this bill up that conference agreement. And I will ‘‘delay’’ continues to rule the House of before the House, it passes with both conclude my opening remarks by say- Representatives. majority and minority votes. There is ing, I was very pleased that on the Madam Chairman, I reserve the bal- support for doing this. I ask my col- Ways to the Means Committee, five ance of my time. leagues with $55 a barrel oil, do you not Democrats understood, one, the strat- Mr. THOMAS. Madam Chairman, I think it is time that you did some- egy that we are undertaking, and, two, yield 2 minutes to the gentlewoman thing? If you do not like this bill, supported the content of that strategy from Pennsylvania (Ms. HART), a mem- where is your alternative? Because as by voting for the Ways and Means posi- ber of the committee. Ms. HART. Madam Chairman, I of yet all you do is the same old rhet- tion. oric. thank the chairman and my colleagues I know a number of people have a def- The CHAIRMAN. Pursuant to the on the committee for moving forward inition of bipartisan, but based upon rule, the gentleman from California such an excellent package as part of the recent history of the Ways and (Mr. THOMAS) and the gentleman from the energy bill. Means Committee, five Democrats sup- California (Mr. STARK) each will con- I think many of us have spent the porting a measure offered in that com- trol 10 minutes. last several years hoping that we would The Chair recognizes the gentleman mittee is unprecedented bipartisan sup- get an energy bill passed. There are a port. And I was very pleased for it. from California (Mr. THOMAS). number of reasons why; in my district, Mr. THOMAS. Madam Chairman, I Madam Chairman, I retain the bal- clearly one of the most important is yield myself such time as I may con- ance of my time. simply the cost of energy, whether it is sume. Mr. STARK. Madam Chairman, I home heat, whether it is the cost to Once again the House is debating a yield myself such time as I may con- manufacturers which is costing us jobs. ‘‘comprehensive energy package.’’ I do sume. We need to move forward with this en- have to say that as far as the Ways and Madam Chairman, I rise in opposi- ergy bill. Means Committee is concerned, it is tion to this bill. First of all, it is im- My district is home to a number of just slightly less comprehensive than it properly titled. It is not an energy pol- manufacturers. I have met with many has been in the past. But that is be- icy act at all; it is the delay bill. Now, of them since the beginning of the year cause we understand, having gone why is it the delay bill? when we were hoping that we would get through a conference with the Senate, Well, it is a bill that delays energy the energy bill moving. What they have the kind of package that will maximize self-sufficiency by enacting tax breaks asked for us is to help them with their our chances in producing a fair and bal- and policies that benefit the oil and gas higher overhead, ultimately helping anced tax section. industry and ignores renewable alter- them with their competitiveness, help- In discussing what we do in this par- natives. ing jobs to remain in our district. Obvi- ticular bill, and I enjoy hearing people It delays protecting the Arctic Na- ously, these companies’ employees are discuss it as though it is the conference tional Wildlife Refuge. It delays hold- much more susceptible to layoffs with- report that is in front of us, it is in ing the makers of MTBE accountable out the energy bill. fact, and I will say it flatly, and in a for destroying drinking water. It I am also hearing from home owners, negotiating position, before us to sit delays the end of $8 billion in special many of the elderly in my district with down and work with the Senate. interest tax breaks. It delays fishery older homes, who need some help, some It does have renewable provisions in restoration by giving dam owners free incentives to improve their homes, the tax package, but by a small rein. some tax assistance so they will have

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00052 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.095 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2205 more energy-efficient homes, to those oil. Nothing in this bill will address the just made on the majority bill on the who are building new homes, more in- needs and concerns of the American minority bill since they include in centives. people facing economic peril at the their entirety the tax section of the The bill also addresses our aging pump every morning when they put $50 majority’s bill. electric transmission system. Many of worth of gas into their car. Instead, Madam Chairman, I yield 11⁄2 minutes our transmission system lines were Americans from Maine to California to the gentleman from Arizona (Mr. built 30 to 50 years ago, and it is esti- will pay at the pump and pay through HAYWORTH). mated by 2015 electricity consumption the nose. Big oil’s profits today defy Mr. HAYWORTH. Madam Chairman, will increase by 28 percent. We need to description. earlier this year I reintroduced the repair and rebuild the 160,000 miles of The CEO of ExxonMobil who does not Residential Solar Energy Tax Credit electrical transmission lines. This bill think global warming is real was paid Act, which would provide a 15 percent will reduce the time for depreciation $38 million last year. The price of crude tax credit for the purchase of solar recovery and improve the opportunity oil jumped $2 a barrel yesterday. That water heating systems and photo- for those companies to update those added $1 billion of earnings to Mobil’s voltaic systems to be installed in resi- lines, helping in efficiency, helping in earnings. Maybe that explains why oil dential settings. opportunity to have cheaper energy. and gas companies have reduced their The maximum amount of this credit It is important also that we encour- investment in facilities by 20 percent is $2,000 and the credit cannot apply to age new kinds of fuel. Especially im- even as their profits have increased 400 solar energy systems used to heat portant are fuel cells and, in fact, pro- percent. swimming pools. I am pleased this pro- viding new jobs and better technology. The oil and gas industry is sitting vision has been included in the tax Fuel cell technology in the United atop a mountain of cash looking down title to H.R. 6, the Energy Policy Act States is growing. The use of it is on Americans who are held hostage by of 2005. growing and, in fact, jobs in that field runaway gas prices that grow the The solar energy industry in our Na- are growing. I think it is important mountain of oil prices even higher. And tion has been growing at a clip of 25 that this bill provide a 15 percent tax we are giving them $7 billion more percent per year for the past several credit for business installation of fuel today. They do not need it. Across the years, yet U.S. manufacturers export 75 cell power plants and residential fuel country gasoline prices are 20 percent percent of their products because of the cell investments. higher than they were a year ago. Nei- higher up-front costs of solar energy This is a great technology. It is one ther wages nor economic opportunities systems as compared to other energy that has been utilized in other parts of come close to bridging that kind of def- sources. the world to a further extent than it icit for the American family. Purchasing a solar energy system is has been utilized in the United States. The only choice for more Americans like buying a car and prepaying for all The help in this bill will encourage fur- is to pay more, save less, use consumer the gas it would ever need. This makes ther use of fuel cells. debt. Oh, yeah, remember the bank- consumers understandably hesitant de- This bill makes changes of the Tax ruptcy bill? And give up something to spite the environmental and other Code that will speed the development make the frayed ends meet, while gains associated with solar energy. Na- of newer and cleaner production of en- ExxonMobil’s CEO pockets $38 million. tional polls consistently find that over ergy. It will help curb energy costs. It With the price of crude oil sky high, 85 percent of Americans want greater will help move our economy forward. you would think we would be declaring support for solar power, and solar I urge my colleagues to support this a 12-alarm economic fire that endan- power can play a role in our energy bill, and I especially commend my col- gers the lives of every American family mix from coast to coast. leagues on the Committee on Ways and and the economic health of our econ- It is my belief that the residential Means for the tax provisions. omy. solar tax credit will help advance this Mr. STARK. Madam Chairman, I Let me quote something that sums important form of renewable energy. yield 31⁄2 minutes to the gentleman this up. ‘‘We are grossly wasting our And in stark contrast to the protesta- from Washington (Mr. MCDERMOTT) energy resources and other precious tions of my friends on the left, we are without further delay. raw materials as though their supply willing to embrace these technologies. (Mr. MCDERMOTT asked and was was infinite.’’ President Jimmy Carter It is proven by this solar energy tax given permission to revise and extend spoke those words in 1976, almost 30 credit. I thank the chairman for its in- his remarks.) years ago. We laughed at him when he clusion. Mr. MCDERMOTT. Madam Chairman, put on a sweater and said maybe we I urge support of the legislation. Friday is Earth Day, but that will not should turn the thermostat down 1 de- Mr. STARK. Madam Chairman, I stop the Republicans from passing leg- gree. yield 21⁄2 minutes to the gentleman islation that will make the Earth dirti- Yet today Americans propose a pol- from Texas (Mr. DOGGETT). er, more polluted and warmer. icy that seeks to roll backward from Mr. DOGGETT. Madam Chairman, The Republican legislation favors the ominous warnings of the mid-1970s. some folks will get a lot of mileage out corporate America over Main Street in America needs vision and leadership, of this bill, but it will not be the hard- America. It will neither ask nor answer but the Republicans will pass a bill working Americans who have to pay any of the energy issues that threaten that endorses and rewards the tradi- more and more at the gas pump as a di- our environment, our economy and fu- tional forms of energy. It proposes cut- rect result of the policies of this Bush ture generations. Instead, the Repub- ting billions in promising renewable administration. licans will answer the greatest chal- energy provisions. It proposes waiving When the same collection of fossil lenge of our time by telling Americans liability for companies that pollute our fuel dinosaurs and tax loophole lobby- to dig deeper into their pockets for big groundwater. It subsidizes oil, gas and ists come here and order Congress to oil. coal. It fails to address meaningful ‘‘fill ’er up,’’ with special favors, they At a time when America needs en- automobile conservation. And worst of seldom go away on ‘‘empty.’’ ergy vision, Republicans have provided all, we are going to go up to the Alaska National security demands a bal- us with their corporate donor lists. De- Wildlife Refuge and we are going to anced energy policy that encourages spite soaring prices, despite dangers to drill. more new energy technology and re- our economy and security for our de- We are going to drill our way to ob- newable alternatives. But in this bill, pendence on oil, the administration livion if we follow this pattern. security is sacrificed at the altar of puts forward the deal of the century for Mr. THOMAS. Madam Chairman, I whichever lobbyist had the biggest lim- big oil, gas and coal. It rewards its yield myself 10 seconds. ousine. friends and encourages America’s ad- I anxiously look forward to the de- Our families’ health depends on clean diction to oil. bate on the Democrat substitute and air and water, but this collection of tax Nothing in this bill will lower gaso- would willingly yield time to the gen- breaks, loopholes, handouts and waiv- line prices a single penny. Nothing in tleman from Washington (Mr. ers ensures only continued healthy this bill will alter our dependence on MCDERMOTT) to make all the points he profits for some of the worst polluters

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00053 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.097 H20PT1 H2206 CONGRESSIONAL RECORD — HOUSE April 20, 2005 in the world. And this bill is not just spends about $1,500 a year in heating the gentleman from New York (Mr. about more smoke in the air, it is and cooling their home. Just think if RANGEL) of the Committee on Ways about more smoke and mirrors. they could save 10, 20, 30 percent. It and Means, and the gentleman from Take, for example, the synthetic fuel means not only energy conservation to Tennessee (Mr. GORDON) of the Com- provision that I tried unsuccessfully to save energy but it would help their mittee on Science for their exceptional strike in the Committee on Ways and pocketbooks as well. leadership in presenting an alternative Means; it is really about tax dodging This legislation today contains provi- view to the Republican bill that is on through synthetic accounting. Unscru- sions out of H.R. 1212, legislation that the floor today. Unfortunately, we will pulous companies get what some esti- provides up to a $2,000 tax credit that not have a Democratic substitute, con- mate to be up to $4 billion a year by homeowners can use in their existing trary to what the gentleman said. spraying starch on coal or pine tar on home to make it more energy efficient, Madam Chairman, the American peo- coal. This does not add to the energy put in better windows, better doors, ple deserve an energy policy that is capability of the coal. It does not cause better insulation, do a better job of worthy of the 21st century, not one the coal to burn in a less polluting sealing the home. If they meet the Fed- mired in the policies of the past, but a manner. Its sole purpose is to generate eral standard by reducing their energy bill that looks forward, not backward. significant tax dodging. That is why consumption by 30 percent, they can It is imperative that our country have Enron was about to embark on this reduce their taxes with up to a $2,000 an energy policy for the future, and it gimmick that so many companies have tax credit, 20 percent of the first $10,000 is a matter of national security that abused, and which this Committee on they invest. we reduce our dependence on foreign Ways and Means refuses to end. Bottom line is we need to encourage oil so that we will be able to take care This energy bill is not just about energy conservation. What better place of our own security and not have to over-reliance on fossil fuels. It is about to start than right at home. I urge bi- send our troops in harm’s way for oil. fossilized ideals. It is about a lost op- partisan support for this legislation. It is critical to our environment that portunity for America to be the world’s Mr. STARK. Madam Chairman, I we invest in emerging technologies and leader in energy technology. yield 1 minute to the gentleman from renewable energy and invest in energy With our security at stake, when so Georgia (Mr. LEWIS). efficiency and conservation. It is vital much of the world’s oil is located in Mr. LEWIS of Georgia. Madam Chair- for our economy that our country’s areas as inflammable above ground as man, I thank the gentleman from Cali- economic growth is not constrained by the fuel they hold underground, with fornia (Mr. STARK) for yielding me the price of oil and that our consumers our families’ health dependent on not time. do not have to pay such a serious price letting the quality of our air and our Madam Chairman, gas prices are at the pump for gasoline. water deteriorate even further than it going up every single day, and this bill The opportunity is here, really, for has under this Administration, this en- does nothing to bring down the costs at an energy bill that would put our coun- ergy bill is the latest example of spend- the pump. In fact, it might just make try on the right path. But this bill that ing today, while the future will be the problem worse. the Republicans have put forth today billed in dollars, safety and health. The energy czars must be the major- misses that opportunity. Instead of a That bill will be due and paid by our ity leader and company, and they positive plan for moving our country children and our grandchildren, like wrote this bill behind closed doors. forward, the Republican bill is warmed- my new little Ella. This bill is immoral. It is a shame and over stew of old provisions and out- Mr. THOMAS. Madam Chairman, I it is a disgrace. This bill was conceived dated policies. yield myself 15 seconds. in darkness and born in a den of iniq- The Republican bill is anti-consumer, I also look forward to seeking to uity. anti-taxpayer, anti-environment, and yield to my friend from Texas (Mr. This bill does not do one thing to with its MTBE provisions, it is harmful DOGGETT) during the debate on the mi- bring down the price of gasoline at the to children and other living things. nority substitute bill, because the pro- pump. We can do better. We can do The Republican bill was conceived in vision he just viciously attacked on the much better. We should vote against secrecy. It was written with the influ- floor as being totally unacceptable is this bill. ence of the energy lobbyists, and it in the Democrats’ bill as well. I look Mr. THOMAS. Madam Chairman, how shows. It should be rejected by this forward to having those words spoken much time is left? Congress. against their own substitute because it The CHAIRMAN. The gentleman First, this bill is anti-consumer. Gas contains exactly the same language. from California (Mr. THOMAS) has 13⁄4 prices are soaring, and this bill makes Madam Chairman, I yield 11⁄2 minutes minutes remaining. matters worse. The price of gasoline is to the gentleman from Illinois (Mr. Mr. THOMAS. And the other side? approaching $3 in some parts of our WELLER). The CHAIRMAN. The gentleman State; and nationwide, gas prices are (Mr. WELLER asked and was given from California (Mr. STARK) has 1 up 42 cents above a year ago. When it permission to revise and extend his re- minute remaining. costs nearly $50 for an American work- marks.) Mr. THOMAS. And who has the right er to fill his tank, it is time for relief. Mr. WELLER. Madam Chairman, I to close? Yet it is the fifth year of the Bush ad- rise in strong support of H.R. 6, bal- The CHAIRMAN. The gentleman ministration, and there has been no anced legislation designed to reduce from California (Mr. THOMAS) has the meaningful action to lower gas prices our dependence on imported energy, a right to close. at the pump. balanced approach that has earned bi- Mr. THOMAS. We have one speaker Madam Chairman, according to the partisan support in the House Com- remaining. Bush administration’s own Department mittee on Ways and Means, emphasizes Mr. STARK. Madam Chairman, I am of Energy, this Republican bill will ac- conservation, alternative sources of en- happy to yield 1 minute to the gentle- tually increase gas prices by three ergy, as well as finding more domestic woman from California (Ms. PELOSI), cents a gallon and will have almost no sources of energy. the distinguished minority leader. effect on production, consumption, or Ms. PELOSI. Madam Chairman, I prices. b 1645 thank the distinguished gentleman The consumer is not served well I take my brief amount of time to from California (Mr. STARK) who I am when the public interest is not served, focus on what I consider to be the most very proud of for yielding me time and and the public interest is not served by consumer-oriented provision of this for his leadership. this bill. Indeed, it is a gift to the spe- legislation, legislation that rewards I want to commend four of our rank- cial interest. conservation, conservation at home. ing members, the gentleman from This bill is wrong because by its elec- Twenty percent of all the energy we Michigan (Mr. DINGELL) of the Com- tricity provisions it fails to protect the consume in America, one-fifth of our mittee on Energy and Commerce, the public from Enron-style fraud and energy consumed, is consumed at gentleman from West Virginia (Mr. RA- abuse. By arbitrary caps on private home. In fact, the average American HALL) of the Committee on Resources, spending to improve the reliability of

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00054 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.140 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2207 our Nation’s electricity grid, the bill tanks and contaminate groundwater, able energy sources, by modernizing goes wrong. It is also wrong by repeal- but they lobbied for it to be added to and expanding our energy infrastruc- ing the Public Utility Holding Com- our gasoline anyway. Now they do not ture, including our power energy infra- pany Act, which protects consumers want to pay for the cleanup. They want structure, and encouraging conserva- and investors from corporate abuses. taxpayers to pick up the tab. tion. Second, the bill is anti-taxpayer, and The provision on MTBE included in I believe we need to move forward on I know that the gentleman from Cali- this bill, at the majority leader’s in- this bill. It is long overdue and has fornia (Mr. STARK) and some of the sistence, killed the bill in the last Con- been a priority of Congress since this members of the Committee on Ways gress, and the gentleman from Texas President came into office. The time and Means addressed some of these (Mr. DELAY), the majority leader, is in- has come for us to pass an energy bill. concerns. The bill is loaded with tax sisting on including it again this year. Unfortunately, we have seen the va- breaks and royalty relief for oil and In fact, this is the majority leader’s cancy of the debate today, the fact gas companies. Of $8.1 billion in tax in- bill that we are debating today. that we are not seeing an alternative centives in the bill, $7.5 billion, a stag- Madam Chairman, it is time for us to being offered by the other side. We gering 93 percent, is for traditional en- look forward. It is time for an energy have heard about new ideas from them, ergy sources such as oil, natural gas, policy worthy of the 21st century. but all we have been offered is warmed- nuclear power, and electricity trans- This Republican energy bill is clearly over rhetoric, and there is no tech- mission. designed to help energy companies nology available to us that could ever Even President Bush has said that make more money, not to help Ameri- make good use of that. when the price of oil is over $50 a barrel cans consumers save money. Please pass this legislation. It is long that the oil industry does not need re- I urge my colleagues to stand up for overdue. The time has come for us to lief; and yet the President wants this a forward-looking energy bill to ensure put in place a national energy policy. bill to come to his desk from Congress our national security, to grow our Mr. BLUNT. Madam Chairman, when as soon as possible. economy, to protect our environment, George W. Bush was running for president six Democrats have better ideas. I par- and to keep our water and air safe for years ago, he said that our country had been ticularly want to commend the gen- our children. without a comprehensive energy policy for a tleman from New York (Mr. BISHOP) I urge my colleagues to vote ‘‘yes’’ decade. We are now going on sixteen years and the gentleman from Massachusetts on the Democratic amendments for an with no energy plan for America, and it is not (Mr. MARKEY) for their amendment to energy policy for the future, and I urge for lack of trying. lower gas prices, promote energy effi- my colleagues to ‘‘just say no’’ to the The House of Representatives has passed ciency, advance emerging technologies gentleman from Texas’ (Mr. DELAY) Energy legislation four times, only to have the for energy efficiency and conservation disgraceful MTBE giveaway and his bills die in the Senate because of partisan and to improve consumer protection. outdated boondoggle of an energy bill. politicking. Keeping the lights on should not be This bill is anti-environment, as the Mr. THOMAS. Madam Chairman, I a partisan issue. Filling up a gas tank should gentleman from West Virginia (Mr. RA- would inquire of the Chair, the 1 not be a partisan issue. HALL) pointed out. It will open the Arc- minute that was on the minority side, Madam Chairman, gas prices are at an all- tic National Wildlife Refuge to oil and does that expire? time high. I want to thank Chairman JOE BAR- gas drilling, all for the sake of a 6- The CHAIRMAN. The Chair has fol- TON for working with me to include a provision month supply of oil that will not even lowed the tradition of the House to in this bill to curb the production of boutique be available for 10 years. If this un- allow additional time to the minority fuel blends and address this issue head-on. spoiled place is not special enough to leader, and her 1 minute expired. The current gasoline supply includes spe- save for our grandchildren, what is? Mr. THOMAS. Madam Chairman, I cially formulated, boutique fuels which are re- Once they despoil the ANWR, nothing appreciate that, and I yield myself 15 quired by law in certain communities. else is sacred. seconds. When supplies are limited, gas prices rise Indeed, this bill makes it easier for If we could get the mileage out of the quickly—sometimes overnight. oil drilling in protected areas off our gallon of gasoline that they get out of For example: Missourians can fill their gas magnificent coastlines. 1 minute, we would not need an energy tanks up in Springfield and drive 3 hours to St. The bill contains other anti-environ- policy in this country. Louis. When they get there, they’ll be filling mental provisions, including weak- First of all, I want to thank the five their tanks up with a completely different type ening the Clean Air Act, weakening the Democrats on the Committee on Ways of gasoline. But if St. Louis ever runs short on Clean Water Act, weakening the Safe and Means who had the courage to vote their boutique fuel, gas stations there can’t sell Drinking Water Act and the National for this excellent tax provision. Under- what consumers could buy back in Springfield. Environmental Policy Act. standing the pressure they are under, The energy bill we will vote on tomorrow Finally, this bill is harmful to chil- based upon the comments that were caps the number of these special fuel blends dren and all living things. The provi- just made, truly it was a heroic vote. and allows communities faced with a shortage sion on the gasoline additive MTBE, a Madam Chairman, it is now my due to unforeseen circumstances, such as a few drops of which can poison entire pleasure to yield the remainder of the refinery fire, a waiver to use conventional gas- drinking water systems, the provisions time to the gentleman from Pennsyl- oline. This plan relies on simple economics: if in this bill for MTBE are a breath- vania (Mr. ENGLISH). we create a larger market for a greater taking example of pandering to special Mr. ENGLISH of Pennsylvania. amount of gasoline, we’ll help drive prices interests. Instead of eliminating MTBE Madam Chairman, at a time of record- down. now, remember I said a few drops can high energy prices, the growth of the By including this proposal in the energy bill, poison entire drinking water systems, economy is at risk, and it is critical the House is moving the country one step instead of eliminating it now, the bill that Congress take the necessary steps closer to lowering the sky-high price of gas for gives the MTBE industry 9 years for a to put in place a comprehensive energy consumers. phase-out, and it would give MTBE policy. Madam Chairman, it’s time to see some producers liability protection in con- The bill before us, frankly, is more common sense at the gas pump. I urge my tamination lawsuits. limited in scope than I would prefer. It colleagues to support this rule, support the un- Okay. You are poisoning the water is not as ambitious as I would like in derlying bill, and vote for lower gas prices and supply, you do not have to stop for 9 creating market incentives to overhaul increased energy independence for America. years, you have no liability for con- the energy side of our economy; but, Mr. LEVIN. Madam Chairman, if ever there tamination, and on top of that, we are nevertheless, support of this bill is a was a time when this country needed a smart, going to give you $2 billion in sub- critical first step for Congress to move forward-looking energy strategy, this is it. En- sidies, $2 billion in subsidies to help forward to meet the critical goal of an ergy prices throughout the country are close to MTBE manufacturers. effective national energy policy. record highs. Consumers in my State are The dirty little secret is that the Its passage will set us on the right struggling with soaring gasoline costs. The MTBE industry knew all along that it path by encouraging the creation of price of gasoline in Michigan today is 36 cents would leak out of gasoline storage new technologies, by promoting renew- a gallon higher than it was just 1 year ago.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00055 Fmt 7634 Sfmt 9920 E:\CR\FM\K20AP7.102 H20PT1 H2208 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Steep increases in the price of natural gas standards and other 21st century tech- first approved in 2002 and has been extended have resulted in skyrocketing increases in nologies. twice since. However, the time has come to consumers’ home heating bills over the past But, instead, the Republican energy bill end the uncertainty surrounding drilling on the few winters. doles out favors to the oil, gas and coal com- Great Lakes. A permanent ban should be put So what is the response of the House of panies, keeping our nation stuck in the 20th into place. Representatives? The Leadership of the century. This bill allows the oil companies to While I am disappointed the Rules Com- House has brought a bill to the Floor that will rip up the Arctic National Wildlife Refuge. This mittee has prevented the House from including do little or nothing to reign in energy prices. bill protects companies that have polluted our a ban on drilling on the Great Lakes, I plan to This is virtually the same bill that the Senate water with MTBE. We now know that GOP work night and day with my colleagues to get rejected 2 years ago. According to the Bush means gas, oil and petroleum! a permanent ban approved—either in con- administration’s own Energy Information Ad- The Rules Committee blocked two amend- ference or as a stand-alone piece of legisla- ministration, the policies contained in this leg- ments I would have offered to this bill. The tion. This is a fight I will not give up. islation will have a negligible effect on energy first would have simply extended the tax credit Mr. DEFAZIO. Madam Chairman, over the production, consumption, imports and prices. for geothermal energy, giving energy compa- past couple of years I have corresponded with Instead of bringing us a comprehensive en- nies the time they need to build geothermal fa- the Department of Energy on an issue of par- ergy bill that brings down gas prices and en- cilities and actually use the incentive this Con- ticular concern to me. The Department of En- courages greater U.S. energy independence, gress already approved. My amendment ergy continues to spend millions of dollars, the bill before the House is little more than a would have promoted the development of geo- over $60 million so far, to defend private con- grab-bag of special interest giveaways. For thermal energy in Imperial Valley, California, tractors who caused injury to citizens down- example, the tax title of this legislation con- and around the nation, creating good jobs and wind of the Hanford nuclear reservation de- tains just over $8 billion worth of tax incen- a source of clean, domestically-produced, en- spite provisions of the Price Anderson Act to tives. Only about 6 percent of these go to en- vironmentally friendly, reliable energy. Yet the the contrary. The American taxpayers should ergy efficiency, renewable energy or conserva- Republicans on the Rules Committee shot no longer have to bear the burden of defend- tion. Nearly all of the $8 billion goes to the oil, down this common sense amendment, pre- ing private contractors who have harmed citi- gas and nuclear industries, as well as electric venting us from even taking a vote on it. zens. I would like to submit my most recent utilities. They also blocked my amendment to ad- letter to the Department of Energy and asked dress another very serious issue we are facing With oil and gas prices—to say nothing of that it be made part of the RECORD. in Imperial Valley—air pollution from power energy industry profits—near record levels, MARCH 4, 2005. plants across the border in Mexico. In the 21st why are we extending these additional sub- Hon. SAMUEL BODMAN, sidies? Just the other day, President Bush century, U.S. companies should not be able to U.S. Department of Energy, said that ‘‘with $55 oil we don’t need incen- skirt their environmental obligations by moving Washington DC. tives to oil and gas companies to explore. a few miles across the border! My amendment DEAR MR. SECRETARY: Thank you for your There are plenty of incentives.’’ Yet this bill is would have simply required power plants in September 2003 response to my questions about the Hanford Nuclear Reservation case. chock-full of these unneeded incentives. the border region to meet our environmental standards if they wish to transmit electricity However, I have ongoing concerns about the There’s $3.3 billion in oil and gas production into the United States. In exchange for trans- Department of Energy’s (DOE) willingness to tax incentives, plus a number of ‘‘royalty holi- mission permits from the Department of En- represent DuPont and General Electric at a day’’ provisions for energy extraction on public cost of millions of taxpayer dollars. I believe ergy, power plants in Mexicali, Mexico would lands. It’s easy to see how this legislation is that the Department’s financial support is have been forced to pay for projects in Impe- good for the bottom lines of oil and gas com- not only ill conceived, but that it violates rial Valley to off-set the air pollution they are panies, but it’s consumers that need our help the intent of Congress in passing the Price sending across the border into our commu- today. Anderson Act (PAA). nities. With the highest child asthma rate in Regarding question numbered ‘‘2’’ of the I know that the proponents of this legislation California, Imperial County certainly needs the 2003 letter, we have been informed that while have been saying that opening up the Arctic help, but the Republicans on the Rules Com- the district judge accepted the defendants’ Wildlife Refuge to oil drilling will help bring mittee once again turned their backs on us. standard of proof for injuries, that decision down gas prices. This simply is not the case. We will continue fighting for a better ap- was soundly reversed by the Ninth Circuit on We have no idea how much oil lies beneath the merits. proach to energy in this Nation. We will fight I am concerned that DOE continues to the Refuge. The New York Times reported in for an investigation of the oil companies to de- February that the ‘‘major oil companies are fund, at considerable taxpayer expense, an termine if any wrongdoing has contributed to ongoing series of technical motions by the largely uninterested in drilling in the refuge, the sky-high gas prices. We will fight for a contractors. skeptical about the potential there. commitment to geothermal energy and other It was the intent of the Congress of the ‘‘Even the plan’s most optimistic backers clean and renewable energy sources. And we United States when it enacted the Price An- agree that any oil from the refuge would meet will continue fighting for an energy policy that derson Act, to encourage the development of only a tiny fraction of America’s needs.’’ reduces pollution in the border region and nuclear energy and at the same time to pro- vide ‘‘full compensation to the victims of nu- The crusade to drill in the Refuge is a dis- around the country. traction. Even if there is extractable oil there, clear incidents,’’ including the people who Mr. GREEN of Wisconsin. Madam Chair- were exposed to radiation from nuclear fa- it would take nearly a decade to bring the en- man, I want to express my deep disappoint- ergy to market. cilities such as Hanford. The actions of the ment that the Rules Committee did not accept Department of Energy in spending large This country badly needs a balanced energy a bipartisan amendment authored by Mr. STU- sums of taxpayer dollars to forestall com- policy. We can’t drill our way to energy secu- PAK, myself, and other Great Lakes area pensation to citizens who were exposed to ra- rity. We need a balance between energy pro- members last night. This important amend- diation releases from Hanford, represents ac- duction, on the one hand, and greater use of ment would have permanently banned oil and tion by a federal agency that is directly con- renewable sources of energy and conservation gas drilling in and under the Great Lakes. The trary to the intent of Congress. on the other. The bill before the House today I recently learned that federal Judge current ban is set to expire in 2007. Nielsen, on March 30, 2004, rejected the mo- doesn’t even pretend to seek balance, and I I am proud to say that I have long been a urge my colleagues to reject it. tion of DuPont and General Electric that proponent of banning oil and gas drilling on they be dismissed from the case because they Mr. FILNER. Madam Chairman, this legisla- the Great Lakes and have voted to do so at contracted with the government to run Han- tion takes our nation in the wrong direction every possible opportunity. The Great Lakes ford. In underwriting such a motion with and fails to meet our energy needs. This is a are home to the world’s largest supply of fresh taxpayer funds the Department violated the missed opportunity. We could have boosted water. In fact, the Great Lakes make up 95 intent of Congress in passing the Price An- our nation’s commitment to renewable and ef- percent of the United States’ fresh surface derson Act. The fact that the PAA reim- ficient energy, thereby curbing our reliance on water. burses the companies when people are in- foreign oil, creating 21st century jobs, pro- For those of us in the Great Lakes states, jured from a nuclear incident precluded the tecting the environment and providing afford- the Great Lakes represent a critical compo- necessity for a ‘‘contractor immunity’’ de- fense as Judge Neilsen held. I have now able and reliable energy for America’s fami- nent of our environment, our economy and our learned that you intend to financially sup- lies. We could have taken on the oil compa- identity. The risks drilling poses to the lakes port an appeal of that Order. Any further at- nies that are gouging all our constituents at are unacceptable. tempts to evade the intent of the PAA by the the gas pumps. We could have fought for Congress has a history in support of ban- DOE we believe to be a serious concern for more hybrid vehicles, higher fuel economy ning drilling on the Great Lakes. A ban was the Congress.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00056 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.085 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2209 Your letter notes that the DOE does not taining a clean environment; and preserving Currently when there is a disagreement about ‘‘disagree with the proposition that low our wilderness areas and public lands. a project, the Secretary of Commerce, through doses of radiation can cause some forms of Instead, by refusing to commit to improving an administrative appeals process, determines cancer.’’ In addition, there are government and investing in sustainable fuel technology, studies that show exposure to radiation con- whether and under what conditions the project tributed to the onset of the claimants’ ill- we are putting our technology and manufac- can go forward. States can present new evi- nesses. Yet the DOE continues to defend the turing industries at a competitive disadvantage dence supporting their arguments to the Sec- contractors. It would appear that contrary when the rest of the planet is searching for al- retary. to the fact that workers can be compensated ternatives to fossil fuels. Under H.R. 6, states will not be allowed to for thyroid cancer, non workers who were ex- We are missing an opportunity here; as a present new evidence to the Secretary, and posed to more Iodine 131 than many workers future energy policy this legislation is bumbling the Secretary will not be allowed to seek out would be denied similar treatment. I do not along because of following the policies in this evidence on his or her own. The Secretary will understand this logic. What policy consider- bill would be like driving into the future by only be allowed to rely on the record compiled ation drives this inconsistent behavior? I also learned that the motions of DuPont looking through the rearview mirror with its by FERC. Furthermore, the bill imposes an ex- and General Electric to have all cases dis- heavily weighted dependence on fossil fuels. pedited timeline for appeals, which may not missed as being filed too late based upon the H.R. 6 falls depressingly short of addressing allow a full review of the facts. Statute of Limitations has been dismissed. our energy needs in both the short and the We have to protect our shores and near wa- More than $60 million of taxpayer funds have long term. ters. H.R. 6 will give the Department of Interior been spent by DuPont and General Electric Based on the pro-industry recommendations permitting authority for ‘‘alternative’’ energy for 15 years of loosing motions and adverse of the Cheney Energy Task Force report, this projects, such as wind projects, situated on rulings. Again, I do not understand why the bill is anti-taxpayer, anti-environment, anti-con- the Outer Continental Shelf (OCS). It also Department of Energy continues to spend millions of dollars paying lawyers to at- sumer and is loaded down with special-inter- grants the Department of Interior authority to tempt to defeat claims that the Congress of est giveaways. permit other types of energy facilities, includ- the United States determined should be com- Madam Chairman, more than ninety percent ing facilities to ‘‘support the exploration, devel- pensated. of the subsidies in H.R. 6 would go to the oil, opment, production, transportation, or storage I further note that the Hanford plaintiffs gas, coal and nuclear industries, leading to of oil, natural gas, or other minerals’’. were just successful in filing a motion de- more pollution, more oil drilling and more ra- Another very dear issue in California is the claring that the operations at Hanford were dioactive-waste-producing nuclear power. fuel additive MTBE (methyl tertiary butyl an ‘‘ultra hazardous activity.’’ This holding By contrast, only about six percent of the ether), I oppose shielding MTBE producers is consistent with Congress’ findings regard- tax breaks would go to energy efficiency and ing the operations of nuclear facilities. We from product liability lawsuits, thereby forcing note again that the Department of Energy renewable energy incentives that could actu- taxpayers to pick up the tab to clean up con- spent thousands upon thousands of dollars ally save consumers money and reduce our taminated groundwater in places such as the defending this untenable defense (Energy dependence on dirty energy sources. Salinas Valley, the salad bowl of the world, Employees Occupational Illness Compensa- Madam Chairman, gas prices, gas prices, which has already tested positive for MTBE. tion Act of 2000, 42 U.S.C. § 7384 et seq). gas prices and more gas prices. It’s the most The bill even includes a $2 billion taxpayer- I understand that a trial date has been set, asked question I hear in my district and rightly financed subsidy to MTBE producers to con- and that General Electric and DuPont are so with prices in my home town of more than vert facilities to produce other chemicals. taking the position that Iodine 131, which $3 a gallon and a national average price at a was released in enormous quantities from The obvious gouging of California con- Hanford, does not cause thyroid cancer. Is record level of $2.24 a gallon—more than 50 sumers is significant evidence that the elec- that the position of the Department of En- percent higher than average gas prices in tricity energy market lacks much needed con- ergy? If not, please explain if the Depart- 2002. trols. ment is taking the position that the Price According to the Bush Administration’s own Does H.R. 6 correct this? NO—Instead of Anderson Act does not apply to a person ex- Energy Department estimates, this Republican protecting Americans from the market manipu- posed to radiation below a certain dose, and bill will actually increase gas prices by 3 cents lation that has become all too prevalent, H.R. if so what that dose is. and will have virtually no effect on production, 6 is weighed down by special interest exemp- I understand that several million dollars consumption, or barrel prices. more could be spent in the next year or two tions that will do more harm than good. continuing to defend this action. That would American consumers are being squeezed at The bill does not give federal regulators the result in taxpayers’ money approaching the the pump while the big oil companies are tools they need to prevent and punish bad ac- $100,000,000 being paid to lawyers to prevent reaping record profits and the Republican tors like Enron who manipulate power mar- compensation to victims of radiation expo- Leadership is passing an energy bill that will kets. Instead H.R. 6 offers cosmetic reforms. sure from Hanford. further raise gas prices. Moreover, the bill does nothing to provide All of the defenses you have previously How in good faith can we go back to out refunds to my constituents and West Coast supported have been rejected by a federal constituencies with a national energy policy consumers who paid unjust and unreasonable court. Has the Department of Energy author- that does not address the future, does not ad- electricity prices during 2000–2001. ized any amount of money for settlement of this case? It would appear that more money dress short term fixes or long term solutions. Madam Chairman, it’s plain and simple— may well be spent to thwart the intent of the Madam Chairman, several provisions in H.R. 6: fails to lower gasoline prices; fails to Price Anderson Act than would be spent in H.R. 6 will weaken California’s rights as a improve our nation’s energy efficiency or pro- victims’ compensation. State to govern itself. These include changes mote sustainable alternatives; fails to ade- Please provide me with a detailed justifica- in: LNG terminal siting, weakening the Coastal quately address future infrastructure needs; tion for any continued payment by the De- Zone Management Act, and expanding alter- fails to learn from the lessons of the California partment of Energy for the defense of this native energy projects situated on the Outer electricity crisis; and fails to prevent future litigation, including specific justifications Continental Shelf (OCS). ‘‘Enrons’’ from manipulating energy markets at for any motions currently or intending to be The bill will hand over exclusive jurisdiction filed or appealed seeking to dismiss most or the expense of consumers. all of the cases and why such action does not for the siting of liquefied natural gas (LNG) fa- I urge my colleagues to oppose this legisla- violate Congress’ intent in enacting the cilities to the Federal Energy Regulatory Com- tion so we can develop a comprehensive en- PAA. mission (FERC), preventing the states from ergy policy that looks to the future and doesn’t Sincerely, having a role in approving the location of LNG rely on repackaged outdated technologies PETER DEFAZIO, terminals and the conditions under which from the past. Member of Congress. these terminals must operate. This bill even Mr. KING of Iowa. I rise today in strong sup- Mr. FARR. Madam Chairman, I rise in goes as far as making the States seek FERC port of H.R. 6, the Energy Policy Act. We strong opposition to this so-called comprehen- permission before conducting safety inspec- need a balanced energy policy in this country, sive energy bill before us today. This energy tions! Plus, they will be barred from taking any and this bill takes great strides towards package have a new wrapping and bow but it independent enforcement action against LNG achieving that balance. is the same white elephant gift for the Amer- terminal operators for safety violations. As a founding co-chair of the House Ag En- ican people that sadly passed in this House H.R. 6 weakens California’s rights under the ergy Users Caucus, I am concerned that the last Congress. CZMA to object to a FERC-approved coastal Corn Belt is being held hostage to high gas, Our Nation’s energy policy must strike a pipeline or energy facility project when the diesel and natural gas prices. Farmers utilize sound balance by pursuing improvements in project is inconsistent with the State’s feder- diesel and gasoline to operate their equipment fuel technology and energy efficiency; main- ally-approved coastal management program. and transport their product. Farmers have had

VerDate jul 14 2003 05:19 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00057 Fmt 7634 Sfmt 9920 E:\CR\FM\A20AP7.088 H20PT1 H2210 CONGRESSIONAL RECORD — HOUSE April 20, 2005 to tighten their belts as prices have increased. In addition to its misdirected energy prior- Subtitle D—Public Housing Therefore, I am in strong support of this en- ities, the bill contains several dirty little foot- Sec. 141. Capacity building for energy-effi- ergy bill that allows for exploration in the Arctic notes. It will pollute our air and water and ex- cient, affordable housing. National Wildlife Reserve (ANWR), which will ploit our federal lands. It exempts MTBE man- Sec. 142. Increase of cdbg public services cap allow for more domestic supply of oil. ufacturers from cleaning up the groundwater for energy conservation and ef- ficiency activities. Nothing has caused more concern for agri- they polluted—violating our Nation’s long- Sec. 143. FHA mortgage insurance incen- culture than the price of natural gas. Natural standing polluter pay policy. It will let oil and tives for energy efficient hous- gas is the primary feedstock for anhydrous gas companies off the hook from the Safe ing. ammonia and other fertilizers and accounts for Water Drinking Act—allowing them to skirt Sec. 144. Public housing capital fund. 90 percent of the cost of making nitrogen fer- water standards. Sec. 145. Grants for energy-conserving im- tilizer. The surge in natural gas prices over the Mr. Speaker, we cannot continue to go provements for assisted hous- last 4 years has been a key reason why nitro- down the same worn out path. We must set ing. gen fertilizer costs have jumped by nearly 50 Sec. 147. Energy-efficient appliances. the Nation on a course to energy independ- Sec. 148. Energy efficiency standards. percent at the farm level. This rise in prices ence which means promoting cleaner, less ex- Sec. 149. Energy strategy for HUD. has contributed to the growing reliance on im- pensive energy that we control. That requires TITLE II—RENEWABLE ENERGY ported fertilizer. For that reason, I am in strong a balanced energy policy that aids domestic Subtitle A—General Provisions support of the natural gas provisions in this bill production but, more importantly, sends us in Sec. 201. Assessment of renewable energy re- and would urge Members to oppose amend- a new direction by investing in renewable and sources. ments that would weaken any natural gas pro- energy efficient technologies. Unfortunately, Sec. 202. Renewable energy production in- visions in the bill. H.R. 6 does not meet this goal, leaving our centive. Finally Madam Chairman, most of my col- Senate colleagues to find a better way. Hope- Sec. 203. Federal purchase requirement. leagues know that Iowa is not only a con- fully, they will be able to craft a bill that Sec. 204. Insular areas energy security. sumer of energy, but a producer of energy. Sec. 205. Use of photovoltaic energy in pub- achieves a better balance than this legislation. lic buildings. The Fifth District of Iowa is an energy export I urge a ‘‘no’’ vote on H.R. 6. center, exporting ethanol and biodiesel all Sec. 206. Grants to improve the commercial b 1700 value of forest biomass for elec- across this nation. This bill includes a 5 billion tric energy, useful heat, trans- gallon Renewable Fuels Standard that will be The CHAIRMAN. All time for general portation fuels, petroleum- good for our energy independence while se- debate has expired. based product substitutes, and curing rural economies. However, I want to Pursuant to the rule, the bill shall be other commercial purposes. see the bill come back from conference with considered read for amendment under Sec. 207. Biobased products. an 8 billion gallon standard. the 5-minute rule. Sec. 208. Renewable energy security. I urge my colleagues to vote in favor of the The text of H.R. 6 is as follows: Subtitle C—Hydroelectric Energy Policy Act. H.R. 6 PART I—ALTERNATIVE CONDITIONS Ms. SCHWARTZ of Pennsylvania. Madam Be it enacted by the Senate and House of Rep- Sec. 231. Alternative conditions and Chairman, I rise today in strong opposition to resentatives of the United States of America in fishways. the Energy Policy Act of 2005. Congress assembled, PART II—ADDITIONAL HYDROPOWER Madam Chairman, this bill represents a lost SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 241. Hydroelectric production incen- opportunity. Now, more than ever, we need an (a) SHORT TITLE.—This Act may be cited as tives. energy bill that will wean the Nation off of for- the ‘‘Energy Policy Act of 2005’’. Sec. 242. Hydroelectric efficiency improve- eign oil. We need to do this so hard-working (b) TABLE OF CONTENTS.—The table of con- ment. Americans are no longer subjected to the tents for the bill is as follows: Sec. 243. Small hydroelectric power projects. ever-rising costs of gasoline and we have to Sec. 244. Increased hydroelectric generation Sec. 1. Short title; table of contents. at existing Federal facilities. do this for the safety and security of our Na- TITLE I—ENERGY EFFICIENCY Sec. 245. Shift of project loads to off-peak tion. Subtitle A—Federal Programs periods. In my home district, the average price for a TITLE III—OIL AND GAS—COMMERCE gallon of regular unleaded is $2.22 compared Sec. 101. Energy and water saving measures in congressional buildings. to $1.76 just one year ago. Yet, the bill before Subtitle A—Petroleum Reserve and Home Sec. 102. Energy management requirements. Heating Oil us will do nothing to relieve Americans from Sec. 103. Energy use measurement and ac- Sec. 301. Permanent authority to operate the skyrocketing costs of gas. My colleagues, countability. the Strategic Petroleum Re- even the Bush Administration recognizes this; Sec. 104. Procurement of energy efficient serve and other energy pro- with the Energy Information Administration products. grams. saying that the bill would actually increase gas Sec. 105. Energy Savings Performance Con- Sec. 302. National Oilheat Research Alli- prices rather than reduce them. tracts. ance. What’s worse is that while the bill does Sec. 107. Voluntary commitments to reduce Sec. 303. Site selection. nothing to relieve Americans of their burden at industrial energy intensity. Sec. 304. Suspension of Strategic Petroleum the gas pump, it also takes an additional $7.5 Sec. 108. Advanced Building Efficiency Reserve deliveries. Testbed. Subtitle B—Production Incentives billion out of their pockets as a tax giveaway Sec. 109. Federal building performance Sec. 320. Liquefaction or gasification nat- to oil, gas, coal and nuclear industries—indus- standards. ural gas terminals. tries that are earning record profits—without Sec. 111. Daylight savings. Sec. 327. Hydraulic fracturing. setting a course towards energy independ- Subtitle B—Energy Assistance and State Sec. 328. Oil and gas exploration and produc- ence. The President himself said, just last Programs tion defined. week, ‘‘With $55 oil we don’t need incentives Sec. 121. Low Income Home Energy Assist- Sec. 329. Outer Continental Shelf provisions. for oil and gas companies to explore. There ance Program. Sec. 330. Appeals relating to pipeline con- are plenty of incentives.’’ Sec. 122. Weatherization assistance. struction or offshore mineral This Congress needs to establish an energy Sec. 123. State energy programs. development projects. policy that sets America free from its depend- Sec. 124. Energy efficient appliance rebate Sec. 333. Natural gas market transparency. ence on imported oil. Yet, only seven percent programs. Subtitle C—Access to Federal Land of the tax incentives in this bill will go towards Sec. 125. Energy efficient public buildings. Sec. 344. Consultation regarding oil and gas renewable energy and energy efficiency— Sec. 126. Low income community energy ef- leasing on public land. leaving us to be reliant on the same old en- ficiency pilot program. Sec. 346. Compliance with executive order ergy sources. Subtitle C—Energy Efficient Products 13211; actions concerning regu- H.R. 6 is, unfortunately, par for the course Sec. 131. Energy Star Program. lations that significantly affect Sec. 132. HVAC maintenance consumer edu- energy supply, distribution, or for the Republican Leadership, which has use. turned a blind eye to scientific discovery—be cation program. Sec. 133. Energy conservation standards for Sec. 355. Encouraging Great Lakes oil and it medical, physical, or otherwise. America additional products. gas drilling ban. cannot continue to be a world leader with re- Sec. 134. Energy labeling. Sec. 358. Federal coalbed methane regula- gard to scientific discovery unless we invest Sec. 135. Preemption. tion. and provide incentives, including for energy Sec. 136. State consumer product energy ef- Subtitle D—Refining Revitalization sources of the future. ficiency standards. Sec. 371. Short title.

VerDate jul 14 2003 05:46 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00058 Fmt 7634 Sfmt 0655 E:\CR\FM\A20AP7.091 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2211 Sec. 372. Findings. Subtitle C—Additional Hydrogen Production Sec. 803. Programs. Sec. 373. Purpose. Provisions Sec. 804. Interagency task force. Sec. 374. Designation of Refinery Revitaliza- Sec. 651. Hydrogen production programs. Sec. 805. Advisory Committee. tion Zones. Sec. 652. Definitions. Sec. 806. External review. Sec. 375. Memorandum of understanding. Sec. 807. Miscellaneous provisions. Sec. 376. State environmental permitting as- Subtitle D—Nuclear Security Sec. 808. Savings clause. sistance. Sec. 661. Nuclear facility threats. Sec. 809. Authorization of appropriations. Sec. 377. Coordination and expeditious re- Sec. 662. Fingerprinting for criminal history Sec. 810. Solar and wind technologies. view of permitting process. record checks. TITLE IX—RESEARCH AND Sec. 378. Compliance with all environmental Sec. 663. Use of firearms by security per- DEVELOPMENT regulations required. sonnel of licensees and certifi- Sec. 900. Short title; definitions. Sec. 379. Definitions. cate holders of the Commission. Subtitle A—Science Programs TITLE IV—COAL Sec. 664. Unauthorized introduction of dan- gerous weapons. Sec. 901. Office of Science programs. Subtitle A—Clean Coal Power Initiative Sec. 665. Sabotage of nuclear facilities or Sec. 902. Systems biology program. Sec. 401. Authorization of appropriations. fuel. Sec. 903. Catalysis Research and Develop- Sec. 402. Project criteria. Sec. 666. Secure transfer of nuclear mate- ment Program. Sec. 403. Report. rials. Sec. 904. Hydrogen. Sec. 404. Clean Coal Centers of Excellence. Sec. 667. Department of Homeland Security Sec. 905. Advanced scientific computing re- Subtitle B—Clean Power Projects consultation. search. Sec. 906. Fusion Energy Sciences program. Sec. 411. Coal technology loan. Sec. 668. Authorization of appropriations. Sec. 907. Science and Technology Scholar- Sec. 412. Coal gasification. TITLE VII—VEHICLES AND FUELS ship Program. Sec. 414. Petroleum coke gasification. Subtitle A—Existing Programs Sec. 908. Office of Scientific and Technical Sec. 416. Electron scrubbing demonstration. Sec. 701. Use of alternative fuels by dual- Information. Subtitle D—Coal and Related Programs fueled vehicles. Sec. 909. Science and engineering pilot pro- Sec. 441. Clean air coal program. Sec. 704. Incremental cost allocation. gram. TITLE V—INDIAN ENERGY Sec. 705. Lease condensates. Sec. 910. Authorization of appropriations. Sec. 501. Short title. Sec. 706. Review of Energy Policy Act of 1992 Subtitle B—Research Administration and Sec. 502. Office of Indian Energy Policy and programs. Operations Programs. Sec. 707. Report concerning compliance with Sec. 911. Cost Sharing. Sec. 503. Indian energy. alternative fueled vehicle pur- Sec. 912. Reprogramming. Sec. 504. Consultation with Indian tribes. chasing requirements. Sec. 913. Merit-based competition. Sec. 505. Four Corners transmission line Subtitle B—Hybrid Vehicles, Advanced Sec. 914. External technical review of de- project. Vehicles, and Fuel Cell Buses partmental programs. Sec. 915. Competitive award of management TITLE VI—NUCLEAR MATTERS PART 1—HYBRID VEHICLES contracts. Subtitle A—Price-Anderson Act Sec. 711. Hybrid vehicles. Sec. 916. National Laboratory designation. Amendments Sec. 712. Hybrid retrofit and electric conver- Sec. 917. Report on equal employment op- Sec. 601. Short title. sion program. portunity practices. Sec. 602. Extension of indemnification au- PART 2—ADVANCED VEHICLES Sec. 918. User facility best practices plan. thority. Sec. 721. Definitions. Sec. 919. Support for science and energy in- Sec. 603. Maximum assessment. Sec. 722. Pilot program. frastructure and facilities. Sec. 604. Department of Energy liability Sec. 723. Reports to Congress. Sec. 920. Coordination plan. limit. Sec. 724. Authorization of appropriations. Sec. 921. Availability of funds. Sec. 605. Incidents outside the United Subtitle C—Energy Efficiency States. PART 3—FUEL CELL BUSES CHAPTER 1—VEHICLES, BUILDINGS, AND Sec. 606. Reports. Sec. 731. Fuel cell transit bus demonstra- INDUSTRIES Sec. 607. Inflation adjustment. tion. Sec. 922. Programs. Sec. 608. Treatment of modular reactors. Subtitle C—Clean School Buses Sec. 609. Applicability. Sec. 923. Vehicles. Sec. 610. Prohibition on assumption by Sec. 741. Definitions. Sec. 924. Buildings. United States Government of Sec. 742. Program for replacement of certain Sec. 925. Industries. liability for certain foreign in- school buses with clean school Sec. 926. Demonstration and commercial ap- cidents. buses. plication. Sec. 611. Civil penalties. Sec. 743. Diesel retrofit program. Sec. 927. Secondary electric vehicle battery Sec. 612. Financial accountability. Sec. 744. Fuel cell school buses. use program. Subtitle B—General Nuclear Matters Subtitle D—Miscellaneous Sec. 928. Next generation lighting initiative. Sec. 929. Definitions. Sec. 621. Licenses. Sec. 751. Railroad efficiency. Sec. 752. Mobile emission reductions trading Sec. 930. Authorization of appropriations. Sec. 622. NRC training program. Sec. 931. Limitation on use of funds. Sec. 623. Cost recovery from government and crediting. agencies. Sec. 753. Aviation fuel conservation and CHAPTER 2—DISTRIBUTED ENERGY AND Sec. 624. Elimination of pension offset. emissions. ELECTRIC ENERGY SYSTEMS Sec. 625. Antitrust review. Sec. 754. Diesel fueled vehicles. Sec. 932. Distributed energy. Sec. 626. Decommissioning. Sec. 756. Reduction of engine idling of Sec. 933. Electricity transmission and dis- Sec. 627. Limitation on legal fee reimburse- heavy-duty vehicles. tribution and energy assurance. ment. Sec. 757. Biodiesel engine testing program. Sec. 933A. Advanced portable power devices. Sec. 629. Report on feasibility of developing Sec. 758. High occupancy vehicle exception. Sec. 934. Authorization of appropriations. commercial nuclear energy gen- Sec. 759. Ultra-efficient engine technology Subtitle D—Renewable energy eration facilities at existing for aircraft. Sec. 935. Findings. Department of Energy sites. Subtitle E—Automobile Efficiency Sec. 936. Definitions. Sec. 630. Uranium sales. Sec. 771. Authorization of appropriations for Sec. 937. Programs. Sec. 631. Cooperative research and develop- implementation and enforce- Sec. 938. Solar. ment and special demonstra- ment of fuel economy stand- Sec. 939. Bioenergy programs. tion projects for the uranium ards. Sec. 940. Wind. mining industry. Sec. 772. Revised considerations for deci- Sec. 941. Geothermal. Sec. 632. Whistleblower protection. sions on maximum feasible av- Sec. 942. Photovoltaic demonstration pro- Sec. 633. Medical isotope production. erage fuel economy. gram. Sec. 634. Fernald byproduct material. Sec. 773. Extension of maximum fuel econ- Sec. 943. Additional programs. Sec. 635. Safe disposal of greater-than-class omy increase for alternative Sec. 944. Analysis and evaluation. c radioactive waste. fueled vehicles. Sec. 945. Authorization of appropriations. Sec. 636. Prohibition on nuclear exports to Sec. 774. Study of feasibility and effects of Subtitle E—Nuclear Energy Programs countries that sponsor ter- reducing use of fuel for auto- Sec. 946. Definition. rorism. mobiles. Sec. 947. Programs. Sec. 638. National uranium stockpile. Sec. 639. Nuclear Regulatory Commission TITLE VIII—HYDROGEN CHAPTER 1—NUCLEAR ENERGY RESEARCH meetings. Sec. 801. Definitions. PROGRAMS Sec. 640. Employee benefits. Sec. 802. Plan. Sec. 948. Advanced fuel recycling program.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00059 Fmt 7634 Sfmt 0655 E:\CR\FM\A20AP7.050 H20PT1 H2212 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Sec. 949. University nuclear science and en- Sec. 1233. Regional Transmission Organiza- Sec. 1307. Arbitrage rules not to apply to gineering support. tion applications progress re- prepayments for natural gas. Sec. 950. University-National Laboratory port. Sec. 1308. Determination of small refiner ex- interactions. Sec. 1234. Federal utility participation in ception to oil depletion deduc- Sec. 951. Nuclear Power 2010 Program. Regional Transmission Organi- tion. Sec. 952. Generation IV Nuclear Energy Sys- zations. Subtitle B—Miscellaneous Energy Tax tems Initiative. Sec. 1235. Standard market design. Incentives Sec. 953. Civilian infrastructure and facili- Sec. 1236. Native load service obligation. Sec. 1311. Credit for residential energy effi- ties. Sec. 1237. Study on the benefits of economic cient property. Sec. 954. Nuclear energy research and devel- dispatch. Sec. 1312. Credit for business installation of opment infrastructure plan. Subtitle D—Transmission Rate Reform qualified fuel cells. Sec. 955. Idaho National Laboratory facili- Sec. 1241. Transmission infrastructure in- Sec. 1313. Reduced motor fuel excise tax on ties plan. vestment. certain mixtures of diesel fuel. Sec. 956. Authorization of appropriations. Subtitle E—Amendments to PURPA Sec. 1314. Amortization of delay rental pay- CHAPTER 2—NEXT GENERATION NUCLEAR ments. Sec. 1251. Net metering and additional PLANT PROGRAM Sec. 1315. Amortization of geological and standards. Sec. 957. Definitions. geophysical expenditures. Sec. 1252. Smart metering. Sec. 958. Next generation nuclear power Sec. 1316. Advanced lean burn technology Sec. 1253. Cogeneration and small power pro- plant. motor vehicle credit. duction purchase and sale re- Sec. 959. Advisory committee. Sec. 1317. Credit for energy efficiency im- quirements. Sec. 960. Program requirements. provements to existing homes. Sec. 1254. Interconnection. Sec. 961. Authorization of appropriations. Subtitle C—Alternative minimum tax relief Subtitle F—Repeal of PUHCA Subtitle F—Fossil Energy Sec. 1321. New nonrefundable personal cred- Sec. 1261. Short title. CHAPTER 1—RESEARCH PROGRAMS its allowed against regular and Sec. 1262. Definitions. minimum taxes. Sec. 962. Enhanced fossil energy research Sec. 1263. Repeal of the Public Utility Hold- Sec. 1322. Certain business energy credits al- and development programs. ing Company Act of 1935. lowed against regular and min- Sec. 963. Fossil research and development. Sec. 1264. Federal access to books and imum taxes. Sec. 964. Oil and gas research and develop- records. ment. Sec. 1265. State access to books and records. TITLE XIV—MISCELLANEOUS Sec. 965. Transportation fuels. Sec. 1266. Exemption authority. Subtitle C—Other Provisions Sec. 966. Fuel cells. Sec. 1267. Affiliate transactions. Sec. 1441. Continuation of transmission se- Sec. 967. Carbon dioxide capture research Sec. 1268. Applicability. curity order. and development. Sec. 1269. Effect on other regulations. Sec. 1442. Review of agency determinations. Sec. 968. Authorization of appropriations. Sec. 1270. Enforcement. Sec. 1443. Attainment dates for downwind CHAPTER 2—ULTRA-DEEPWATER AND UNCON- Sec. 1271. Savings provisions. ozone nonattainment areas. VENTIONAL NATURAL GAS AND OTHER PE- Sec. 1272. Implementation. Sec. 1444. Energy production incentives. TROLEUM RESOURCES Sec. 1273. Transfer of resources. Sec. 1446. Regulation of certain oil used in Sec. 969. Program authority. Sec. 1274. Effective date. transformers. Sec. 970. Ultra-deepwater and unconven- Sec. 1275. Service allocation. Sec. 1447. Risk assessments. tional onshore natural gas and Sec. 1276. Authorization of appropriations. Sec. 1448. Oxygen-fuel. other petroleum research and Sec. 1277. Conforming amendments to the Sec. 1449. Petrochemical and oil refinery fa- development program. Federal Power Act. cility health assessment. Sec. 971. Additional requirements for Subtitle G—Market Transparency, Sec. 1450. United States-Israel cooperation. awards. Enforcement, and Consumer Protection Sec. 1451. Carbon-based fuel cell develop- Sec. 972. Advisory committees. Sec. 1281. Market transparency rules. ment. Sec. 973. Limits on participation. Sec. 1282. Market manipulation. TITLE XV—ETHANOL AND MOTOR FUELS Sec. 974. Sunset. Sec. 1283. Enforcement. Subtitle A—General Provisions Sec. 975. Definitions. Sec. 1284. Refund effective date. Sec. 1501. Renewable content of motor vehi- Sec. 976. Funding. Sec. 1285. Refund authority. cle fuel. Sec. 1286. Sanctity of contract. Subtitle G—Improved coordination and Sec. 1502. Fuels safe harbor. Sec. 1287. Consumer privacy and unfair trade management of civilian science and tech- Sec. 1503. Findings and MTBE transition as- practices. nology programs sistance. Sec. 978. Improved coordination and man- Subtitle H—Merger Reform Sec. 1504. Use of MTBE. agement of civilian science and Sec. 1291. Merger review reform and ac- Sec. 1505. National Academy of Sciences re- technology programs. countability. view and presidential deter- TITLE X—DEPARTMENT OF ENERGY Sec. 1292. Electric utility mergers. mination. MANAGEMENT Subtitle I—Definitions Sec. 1506. Elimination of oxygen content re- quirement for reformulated Sec. 1002. Other transactions authority. Sec. 1295. Definitions. gasoline. Sec. 1003. University collaboration. Subtitle J—Technical and Conforming Sec. 1004. Sense of Congress. Sec. 1507. Analyses of motor vehicle fuel Amendments changes. TITLE XII—ELECTRICITY Sec. 1297. Conforming amendments. Sec. 1508. Data collection. Sec. 1201. Short title. Subtitle K—Economic Dispatch Sec. 1509. Reducing the proliferation of State fuel controls. Subtitle A—Reliability Standards Sec. 1298. Economic dispatch. Sec. 1211. Electric reliability standards. Sec. 1510. Fuel system requirements harmo- TITLE XIII—ENERGY TAX INCENTIVES nization study. Subtitle B—Transmission Infrastructure Sec. 1300. Short title; etc. Sec. 1511. Commercial byproducts from mu- Modernization Subtitle A—Energy Infrastructure Tax nicipal solid waste and cel- Sec. 1221. Siting of interstate electric trans- Incentives lulosic biomass loan guarantee mission facilities. program. Sec. 1301. Natural gas gathering lines treat- Sec. 1222. Third-party finance. Sec. 1512. Cellulosic biomass and waste-de- ed as 7-year property. Sec. 1223. Transmission system monitoring. rived ethanol conversion assist- Sec. 1302. Natural gas distribution lines Sec. 1224. Advanced transmission tech- ance. treated as 15-year property. nologies. Sec. 1513. Blending of compliant reformu- Sec. 1303. Electric transmission property Sec. 1225. Electric transmission and dis- lated gasolines. treated as 15-year property. tribution programs. Sec. 1304. Expansion of amortization for cer- Subtitle B—Underground Storage Tank Sec. 1226. Advanced Power System Tech- tain atmospheric pollution con- Compliance nology Incentive Program. trol facilities in connection Sec. 1521. Short title. Sec. 1227. Office of Electric Transmission with plants first placed in serv- Sec. 1522. Leaking underground storage and Distribution. ice after 1975. tanks. Subtitle C—Transmission Operation Sec. 1305. Modification of credit for pro- Sec. 1523. Inspection of underground storage Improvements ducing fuel from a nonconven- tanks. Sec. 1231. Open nondiscriminatory access. tional source. Sec. 1524. Operator training. Sec. 1232. Sense of Congress on Regional Sec. 1306. Modifications to special rules for Sec. 1525. Remediation from oxygenated fuel Transmission Organizations. nuclear decommissioning costs. additives.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00060 Fmt 7634 Sfmt 0655 E:\CR\FM\A20AP7.050 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2213 Sec. 1526. Release prevention, compliance, TITLE XX—OIL AND GAS—RESOURCES Sec. 2042. Land conveyance, portion of Naval and enforcement. Subtitle A—Production incentives Petroleum Reserve Numbered 2, Sec. 1527. Delivery prohibition. to City of Taft, California. Sec. 2001. Definition of Secretary. Sec. 1528. Federal facilities. Sec. 2043. Revocation of land withdrawal. Sec. 2002. Program on oil and gas royalties Sec. 1529. Tanks on Tribal lands. Sec. 2044. Effect of transfer and conveyance. Sec. 1530. Additional measures to protect in-kind. Sec. 2003. Marginal property production in- Subtitle D—Miscellaneous Provisions groundwater. Sec. 2051. Split-estate Federal oil and gas Sec. 1531. Authorization of appropriations. centives. leasing and development prac- Sec. 1532. Conforming amendments. Sec. 2004. Incentives for natural gas produc- tices. Sec. 1533. Technical amendments. tion from deep wells in the shallow waters of the Gulf of Sec. 2052. Royalty payments under leases Subtitle C—Boutique Fuels Mexico. under the Outer Continental Sec. 1541. Reducing the proliferation of bou- Sec. 2005. Royalty relief for deep water pro- Shelf Lands Act. tique fuels. duction. Sec. 2053. Domestic offshore energy rein- TITLE XVI—STUDIES Sec. 2006. Alaska offshore royalty suspen- vestment. Sec. 2054. Repurchase of leases that are not Sec. 1601. Study on inventory of petroleum sion. allowed to be explored or devel- and natural gas storage. Sec. 2007. Oil and gas leasing in the National oped. Sec. 1605. Study of energy efficiency stand- Petroleum Reserve in Alaska. ards. Sec. 2008. Orphaned, abandoned, or idled TITLE XXI—COAL Sec. 1606. Telecommuting study. wells on Federal land. Sec. 2101. Short title. Sec. 1607. LIHEAP report. Sec. 2009. Combined hydrocarbon leasing. Sec. 2102. Lease modifications for contig- Sec. 1608. Oil bypass filtration technology. Sec. 2010. Alternate energy-related uses on uous coal lands or coal depos- Sec. 1609. Total integrated thermal systems. the outer Continental Shelf. its. Sec. 1610. University collaboration. Sec. 2011. Preservation of geological and Sec. 2103. Approval of logical mining units. Sec. 1611. Reliability and consumer protec- geophysical data. Sec. 2104. Payment of advance royalties tion assessment. Sec. 2012. Oil and gas lease acreage limita- under coal leases. Sec. 1612. Report on energy integration with tions. Sec. 2105. Elimination of deadline for sub- Latin America. Sec. 2013. Deadline for decision on appeals of mission of coal lease operation Sec. 1613. Low-volume gas reservoir study. consistency determination and reclamation plan. TITLE XVII—RENEWABLE ENERGY under the Coastal Zone Man- Sec. 2106. Amendment relating to financial agement Act of 1972. assurances with respect to Sec. 1701. Grants to improve the commercial Sec. 2014. Reimbursement for costs of NEPA bonus bids. value of forest biomass for elec- analyses, documentation, and Sec. 2107. Inventory requirement. tric energy, useful heat, trans- studies. Sec. 2108. Application of amendments. portation fuels, petroleum- Sec. 2015. Gas hydrate production incentive. Sec. 2109. Resolution of Federal resource de- based product substitutes, and Sec. 2016. Onshore deep gas production in- velopment conflicts in the Pow- other commercial purposes. centive. der River Basin. Sec. 1702. Environmental review for renew- Sec. 2017. Enhanced oil and natural gas pro- TITLE XXII—ARCTIC COASTAL PLAIN able energy projects. duction incentive. DOMESTIC ENERGY Sec. 1703. Sense of Congress regarding gen- Sec. 2018. Oil shale. eration capacity of electricity Sec. 2201. Short title. Sec. 2019. Use of information about oil and Sec. 2202. Definitions. from renewable energy re- gas public challenges. sources on public lands. Sec. 2203. Leasing program for lands within Subtitle B—Access to Federal land the coastal plain. TITLE XVIII—GEOTHERMAL ENERGY Sec. 2021. Office of Federal Energy Project Sec. 2204. Lease sales. Sec. 1801. Short title. Coordination. Sec. 2205. Grant of leases by the Secretary. Sec. 1802. Competitive lease sale require- Sec. 2206. Lease terms and conditions. Sec. 2022. Federal onshore oil and gas leas- ments. Sec. 2207. Coastal Plain environmental pro- ing and permitting practices. Sec. 1803. Direct use. tection. Sec. 2023. Management of Federal oil and Sec. 1804. Royalties and near-term produc- Sec. 2208. Expedited judicial review. gas leasing programs. tion incentives. Sec. 2209. Federal and State distribution of Sec. 2024. Consultation regarding oil and gas Sec. 1805. Expediting administrative action revenues. leasing on public land. for geothermal leasing. Sec. 2210. Rights-of-way across the Coastal Sec. 2025. Estimates of oil and gas resources Sec. 1806. Coordination of geothermal leas- Plain. underlying onshore Federal ing and permitting on Federal Sec. 2211. Conveyance. land. lands. Sec. 2212. Local government impact aid and Sec. 1807. Review and report to Congress. Sec. 2026. Compliance with executive order community service assistance. 13211; actions concerning regu- Sec. 1808. Reimbursement for costs of NEPA TITLE XXIII—SET AMERICA FREE (SAFE) lations that significantly affect analyses, documentation, and Sec. 2301. Short title. studies. energy supply, distribution, or use. Sec. 2302. Findings. Sec. 1809. Assessment of geothermal energy Sec. 2303. Purpose. Sec. 2027. Pilot project to improve Federal potential. Sec. 2304. United States Commission on permit coordination. Sec. 1810. Cooperative or unit plans. North American Energy Free- Sec. 2028. Deadline for consideration of ap- Sec. 1811. Royalty on byproducts. dom. plications for permits. Sec. 1812. Repeal of authorities of Secretary Sec. 2305. North American energy freedom Sec. 2029. Clarification of fair market rental to readjust terms, conditions, policy. value determinations for public rentals, and royalties. TITLE XXV—GRAND CANYON HYDRO- Sec. 1813. Crediting of rental toward roy- land and Forest Service rights- of-way. GEN-POWERED TRANSPORTATION alty. DEMONSTRATION Sec. 1814. Lease duration and work commit- Sec. 2030. Energy facility rights-of-way and ment requirements. corridors on Federal land. Sec. 2501. Short title. Sec. 1815. Advanced royalties required for Sec. 2031. Consultation regarding energy Sec. 2502. Definitions. Sec. 2503. Findings. suspension of production. rights-of-way on public land. Sec. 2504. Research, development, and dem- Sec. 1816. Annual rental. Sec. 2032. Electricity transmission line onstration program. Sec. 1817. Deposit and use of geothermal right-of-way, Cleveland Na- Sec. 2505. Reports to Congress. lease revenues for 5 fiscal years. tional Forest and adjacent pub- Sec. 2506. Authorization of appropriations. Sec. 1818. Repeal of acreage limitations. lic land, California. Sec. 1819. Technical amendments. Sec. 2033. Sense of Congress regarding devel- TITLE XXVI—ADDITIONAL PROVISIONS Sec. 1820. Intermountain West Geothermal opment of minerals under Sec. 2601. Limitation on required review Consortium. Padre Island National Sea- under NEPA. TITLE XIX—HYDROPOWER shore. Sec. 2602. Enhancing energy efficiency in Sec. 2034. Livingston Parish mineral rights management of Federal lands. Sec. 1901. Increased hydroelectric genera- transfer. tion at existing Federal facili- TITLE I—ENERGY EFFICIENCY ties. Subtitle C—Naval Petroleum Reserves Subtitle A—Federal Programs Sec. 1902. Shift of project loads to off-peak Sec. 2041. Transfer of administrative juris- SEC. 101. ENERGY AND WATER SAVING MEAS- periods. diction and environmental re- URES IN CONGRESSIONAL BUILD- Sec. 1903. Report identifying and describing mediation, Naval Petroleum INGS. the status of potential hydro- Reserve Numbered 2, Kern (a) IN GENERAL.—Part 3 of title V of the power facilities. County, California. National Energy Conservation Policy Act (42

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00061 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.050 H20PT1 H2214 CONGRESSIONAL RECORD — HOUSE April 20, 2005 U.S.C. 8251 et seq.) is amended by adding at eral buildings of the agency (including each U.S.C. 8253(c)) is further amended by adding the end the following: industrial or laboratory facility) so that the at the end the following: ‘‘SEC. 552. ENERGY AND WATER SAVINGS MEAS- energy consumption per gross square foot of ‘‘(3) Not later than 180 days after the date URES IN CONGRESSIONAL BUILD- the Federal buildings of the agency in fiscal of enactment of this paragraph, the Sec- INGS. years 2006 through 2015 is reduced, as com- retary shall issue guidelines that establish ‘‘(a) IN GENERAL.—The Architect of the pared with the energy consumption per gross criteria for exclusions under paragraph (1).’’. Capitol— square foot of the Federal buildings of the (f) RETENTION OF ENERGY AND WATER SAV- ‘‘(1) shall develop, update, and implement a agency in fiscal year 2003, by the percentage INGS.—Section 546 of the National Energy cost-effective energy conservation and man- specified in the following table: Conservation Policy Act (42 U.S.C. 8256) is agement plan (referred to in this section as ‘‘Fiscal Year Percentage reduction amended by adding at the end the following the ‘plan’) for all facilities administered by new subsection: Congress (referred to in this section as ‘con- 2006 ...... 2 ‘‘(e) RETENTION OF ENERGY AND WATER SAV- gressional buildings’) to meet the energy 2007 ...... 4 INGS.—An agency may retain any funds ap- performance requirements for Federal build- 2008 ...... 6 propriated to that agency for energy expend- 2009 ...... 8 itures, water expenditures, or wastewater ings established under section 543(a)(1); and 2010 ...... 10 ‘‘(2) shall submit the plan to Congress, not treatment expenditures, at buildings subject 2011 ...... 12 to the requirements of section 543(a) and (b), later than 180 days after the date of enact- 2012 ...... 14 ment of this section. 2013 ...... 16 that are not made because of energy savings ‘‘(b) PLAN REQUIREMENTS.—The plan shall 2014 ...... 18 or water savings. Except as otherwise pro- include— 2015 ...... 20.’’. vided by law, such funds may be used only ‘‘(1) a description of the life cycle cost (2) REPORTING BASELINE.—The energy re- for energy efficiency, water conservation, or analysis used to determine the cost-effec- duction goals and baseline established in unconventional and renewable energy re- tiveness of proposed energy efficiency paragraph (1) of section 543(a) of the Na- sources projects.’’. projects; tional Energy Conservation Policy Act (42 (g) REPORTS.—Section 548(b) of the Na- ‘‘(2) a schedule of energy surveys to ensure U.S.C. 8253(a)(1)), as amended by this sub- tional Energy Conservation Policy Act (42 complete surveys of all congressional build- section, supersede all previous goals and U.S.C. 8258(b)) is amended— ings every 5 years to determine the cost and baselines under such paragraph, and related (1) in the subsection heading, by inserting payback period of energy and water con- reporting requirements. ‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; servation measures; (b) REVIEW AND REVISION OF ENERGY PER- and ‘‘(3) a strategy for installation of life cycle FORMANCE REQUIREMENT.—Section 543(a) of (2) by inserting ‘‘President and’’ before cost-effective energy and water conservation the National Energy Conservation Policy ‘‘Congress’’. (h) CONFORMING AMENDMENT.—Section measures; Act (42 U.S.C. 8253(a)) is further amended by 550(d) of the National Energy Conservation ‘‘(4) the results of a study of the costs and adding at the end the following: Policy Act (42 U.S.C. 8258b(d)) is amended in benefits of installation of submetering in ‘‘(3) Not later than December 31, 2014, the the second sentence by striking ‘‘the 20 per- congressional buildings; and Secretary shall review the results of the im- cent reduction goal established under sec- ‘‘(5) information packages and ‘how-to’ plementation of the energy performance re- tion 543(a) of the National Energy Conserva- guides for each Member and employing au- quirement established under paragraph (1) tion Policy Act (42 U.S.C. 8253(a)).’’ and in- thority of Congress that detail simple, cost- and submit to Congress recommendations serting ‘‘each of the energy reduction goals effective methods to save energy and tax- concerning energy performance require- established under section 543(a).’’. payer dollars in the workplace. ments for fiscal years 2016 through 2025.’’. SEC. 103. ENERGY USE MEASUREMENT AND AC- ‘‘(c) ANNUAL REPORT.—The Architect of the (c) EXCLUSIONS.—Section 543(c)(1) of the COUNTABILITY. Capitol shall submit to Congress annually a National Energy Conservation Policy Act (42 Section 543 of the National Energy Con- report on congressional energy management U.S.C. 8253(c)(1)) is amended by striking ‘‘An servation Policy Act (42 U.S.C. 8253) is fur- and conservation programs required under agency may exclude’’ and all that follows ther amended by adding at the end the fol- this section that describes in detail— through the end and inserting ‘‘(A) An agen- lowing: ‘‘(1) energy expenditures and savings esti- cy may exclude, from the energy perform- ‘‘(e) METERING OF ENERGY USE.— mates for each facility; ance requirement for a fiscal year estab- ‘‘(1) DEADLINE.—By October 1, 2012, in ac- ‘‘(2) energy management and conservation lished under subsection (a) and the energy management requirement established under cordance with guidelines established by the projects; and Secretary under paragraph (2), all Federal ‘‘(3) future priorities to ensure compliance subsection (b), any Federal building or col- lection of Federal buildings, if the head of buildings shall, for the purposes of efficient with this section.’’. use of energy and reduction in the cost of ABLE OF CONTENTS AMENDMENT.—The the agency finds that— (b) T electricity used in such buildings, be me- table of contents of the National Energy ‘‘(i) compliance with those requirements tered or submetered. Each agency shall use, Conservation Policy Act is amended by add- would be impracticable; to the maximum extent practicable, ad- ing at the end of the items relating to part ‘‘(ii) the agency has completed and sub- vanced meters or advanced metering devices 3 of title V the following new item: mitted all federally required energy manage- ment reports; that provide data at least daily and that ‘‘Sec. 552. Energy and water savings meas- ‘‘(iii) the agency has achieved compliance measure at least hourly consumption of elec- ures in congressional build- with the energy efficiency requirements of tricity in the Federal buildings of the agen- ings.’’. this Act, the Energy Policy Act of 1992, Ex- cy. Such data shall be incorporated into ex- (c) REPEAL.—Section 310 of the Legislative ecutive orders, and other Federal law; and isting Federal energy tracking systems and Branch Appropriations Act, 1999 (2 U.S.C. ‘‘(iv) the agency has implemented all prac- made available to Federal facility energy 1815), is repealed. ticable, life cycle cost-effective projects with managers. (d) ENERGY INFRASTRUCTURE.—The Archi- respect to the Federal building or collection ‘‘(2) GUIDELINES.— tect of the Capitol, building on the Master of Federal buildings to be excluded. ‘‘(A) IN GENERAL.—Not later than 180 days Plan Study completed in July 2000, shall ‘‘(B) A finding of impracticability under after the date of enactment of this sub- commission a study to evaluate the energy subparagraph (A)(i) shall be based on— section, the Secretary, in consultation with infrastructure of the Capital Complex to de- ‘‘(i) the energy intensiveness of activities the Department of Defense, the General termine how the infrastructure could be aug- carried out in the Federal building or collec- Services Administration, representatives mented to become more energy efficient, tion of Federal buildings; or from the metering industry, utility industry, using unconventional and renewable energy ‘‘(ii) the fact that the Federal building or energy services industry, energy efficiency resources, in a way that would enable the collection of Federal buildings is used in the industry, energy efficiency advocacy organi- Complex to have reliable utility service in performance of a national security func- zations, national laboratories, universities, the event of power fluctuations, shortages, tion.’’. and Federal facility energy managers, shall or outages. (d) REVIEW BY SECRETARY.—Section establish guidelines for agencies to carry out (e) AUTHORIZATION OF APPROPRIATIONS.— 543(c)(2) of the National Energy Conservation paragraph (1). There are authorized to be appropriated to Policy Act (42 U.S.C. 8253(c)(2)) is amended— ‘‘(B) REQUIREMENTS FOR GUIDELINES.—The the Architect of the Capitol to carry out sub- (1) by striking ‘‘impracticability stand- guidelines shall— section (d), $2,000,000 for each of fiscal years ards’’ and inserting ‘‘standards for exclu- ‘‘(i) take into consideration— 2006 through 2010. sion’’; ‘‘(I) the cost of metering and submetering SEC. 102. ENERGY MANAGEMENT REQUIRE- (2) by striking ‘‘a finding of imprac- and the reduced cost of operation and main- MENTS. ticability’’ and inserting ‘‘the exclusion’’; tenance expected to result from metering (a) ENERGY REDUCTION GOALS.— and and submetering; (1) AMENDMENT.—Section 543(a)(1) of the (3) by striking ‘‘energy consumption re- ‘‘(II) the extent to which metering and sub- National Energy Conservation Policy Act (42 quirements’’ and inserting ‘‘requirements of metering are expected to result in increased U.S.C. 8253(a)(1)) is amended by striking ‘‘its subsections (a) and (b)(1)’’. potential for energy management, increased Federal buildings so that’’ and all that fol- (e) CRITERIA.—Section 543(c) of the Na- potential for energy savings and energy effi- lows through the end and inserting ‘‘the Fed- tional Energy Conservation Policy Act (42 ciency improvement, and cost and energy

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savings due to utility contract aggregation; ergy consuming products and systems, in- (1) IN GENERAL.—Section 801(a) of the Na- and cluding guide specifications, project speci- tional Energy Conservation Policy Act (42 ‘‘(III) the measurement and verification fications, and construction, renovation, and U.S.C. 8287(a)) is amended by adding at the protocols of the Department of Energy; services contracts that include provision of end the following subparagraph: ‘‘(ii) include recommendations concerning energy consuming products and systems, and ‘‘(E) All Federal agencies combined may the amount of funds and the number of into the factors for the evaluation of offers not, after the date of enactment of the En- trained personnel necessary to gather and received for the procurement, criteria for en- ergy Policy Act of 2005, enter into more than use the metering information to track and ergy efficiency that are consistent with the a total of 100 contracts under this title. Pay- reduce energy use; criteria used for rating Energy Star products ments made by the Federal Government ‘‘(iii) establish priorities for types and lo- and for rating FEMP designated products. under all contracts permitted by this sub- cations of buildings to be metered and sub- ‘‘(c) LISTING OF ENERGY EFFICIENT PROD- paragraph combined shall not exceed a total metered based on cost-effectiveness and a UCTS IN FEDERAL CATALOGS.—Energy Star of $500,000,000. Each Federal agency shall ap- schedule of 1 or more dates, not later than 1 products and FEMP designated products point a coordinator for Energy Savings Per- year after the date of issuance of the guide- shall be clearly identified and prominently formance Contracts with the responsibility lines, on which the requirements specified in displayed in any inventory or listing of prod- to monitor the number of such contracts for paragraph (1) shall take effect; and ucts by the General Services Administration that Federal agency and the investment ‘‘(iv) establish exclusions from the require- or the Defense Logistics Agency. The Gen- value of each contract. The coordinators for ments specified in paragraph (1) based on the eral Services Administration or the Defense each Federal agency shall meet monthly to de minimis quantity of energy use of a Fed- Logistics Agency shall supply only Energy ensure that the limits specified in this sub- eral building, industrial process, or struc- Star products or FEMP designated products paragraph on the number of contracts and ture. for all product categories covered by the En- the payments made for the contracts are not ‘‘(3) PLAN.—Not later than 6 months after ergy Star program or the Federal Energy exceeded.’’. the date guidelines are established under Management Program, except in cases where (2) DEFINITION.—Section 804(1) of the Na- paragraph (2), in a report submitted by the the agency ordering a product specifies in tional Energy Conservation Policy Act (42 agency under section 548(a), each agency writing that no Energy Star product or U.S.C. 8287c(1)) is amended to read as follows: shall submit to the Secretary a plan describ- FEMP designated product is available to ‘‘(1) The term ‘Federal agency’ means the ing how the agency will implement the re- meet the buyer’s functional requirements, or Department of Defense, the Department of quirements of paragraph (1), including (A) that no Energy Star product or FEMP des- Veterans Affairs, and the Department of En- how the agency will designate personnel pri- ignated product is cost-effective for the in- ergy. ’’. marily responsible for achieving the require- tended application over the life of the prod- (3) VALIDITY OF CONTRACTS.—The amend- ments and (B) demonstration by the agency, uct, taking energy cost savings into account. ments made by this subsection shall not af- ‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of complete with documentation, of any finding fect the validity of contracts entered into electric motors of 1 to 500 horsepower, agen- that advanced meters or advanced metering under title VIII of the National Energy Con- cies shall select only premium efficient mo- devices, as defined in paragraph (1), are not servation Policy Act (42 U.S.C. 8287 et seq.) tors that meet a standard designated by the practicable.’’. before the date of enactment of this Act, or Secretary. The Secretary shall designate of contracts described in subsection (h). SEC. 104. PROCUREMENT OF ENERGY EFFICIENT such a standard not later than 120 days after ERMANENT XTENSION PRODUCTS. (b) P E .—Effective Oc- the date of the enactment of this section, tober 1, 2006, section 801(c) of the National (a) REQUIREMENTS.—Part 3 of title V of the after considering the recommendations of as- Energy Conservation Policy Act (42 U.S.C. National Energy Conservation Policy Act (42 sociated electric motor manufacturers and 8287(c)) is repealed. U.S.C. 8251 et seq.), as amended by section energy efficiency groups. (c) PAYMENT OF COSTS.—Section 802 of the 101, is amended by adding at the end the fol- ‘‘(2) All Federal agencies are encouraged to National Energy Conservation Policy Act (42 lowing: take actions to maximize the efficiency of U.S.C. 8287a) is amended by inserting ‘‘, ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY air conditioning and refrigeration equip- water, or wastewater treatment’’ after ‘‘pay- EFFICIENT PRODUCTS. ment, including appropriate cleaning and ment of energy’’. ‘‘(a) DEFINITIONS.—In this section: maintenance, including the use of any sys- (d) ENERGY SAVINGS.—Section 804(2) of the ‘‘(1) AGENCY.—The term ‘agency’ has the tem treatment or additive that will reduce National Energy Conservation Policy Act (42 meaning given that term in section 7902(a) of the electricity consumed by air conditioning U.S.C. 8287c(2)) is amended to read as follows: title 5, United States Code. and refrigeration equipment. Any such treat- ‘‘(2) The term ‘energy savings’ means a re- ‘‘(2) ENERGY STAR PRODUCT.—The term ‘En- ment or additive must be— duction in the cost of energy, water, or ergy Star product’ means a product that is ‘‘(A) determined by the Secretary to be ef- wastewater treatment, from a base cost es- rated for energy efficiency under an Energy fective in increasing the efficiency of air tablished through a methodology set forth in Star program. conditioning and refrigeration equipment the contract, used in an existing federally ‘‘(3) ENERGY STAR PROGRAM.—The term without having an adverse impact on air owned building or buildings or other feder- ‘Energy Star program’ means the program conditioning performance (including cooling ally owned facilities as a result of— established by section 324A of the Energy capacity) or equipment useful life; ‘‘(A) the lease or purchase of operating Policy and Conservation Act. ‘‘(B) determined by the Administrator of equipment, improvements, altered operation ‘‘(4) FEMP DESIGNATED PRODUCT.—The the Environmental Protection Agency to be and maintenance, or technical services; term ‘FEMP designated product’ means a environmentally safe; and ‘‘(B) the increased efficient use of existing product that is designated under the Federal ‘‘(C) shown to increase seasonal energy ef- energy sources by cogeneration or heat re- Energy Management Program of the Depart- ficiency ratio (SEER) or energy efficiency covery, excluding any cogeneration process ment of Energy as being among the highest ratio (EER) when tested by the National In- for other than a federally owned building or 25 percent of equivalent products for energy stitute of Standards and Technology accord- buildings or other federally owned facilities; efficiency. ing to Department of Energy test procedures or ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT without causing any adverse impact on the ‘‘(C) the increased efficient use of existing PRODUCTS.— system, system components, the refrigerant water sources in either interior or exterior ‘‘(1) REQUIREMENT.—To meet the require- or lubricant, or other materials in the sys- applications.’’. ments of an agency for an energy consuming tem. (e) ENERGY SAVINGS CONTRACT.—Section product, the head of the agency shall, except Results of testing described in subparagraph 804(3) of the National Energy Conservation as provided in paragraph (2), procure— (C) shall be published in the Federal Register Policy Act (42 U.S.C. 8287c(3)) is amended to ‘‘(A) an Energy Star product; or for public review and comment. For purposes read as follows: ‘‘(B) a FEMP designated product. of this section, a hardware device or primary ‘‘(3) The terms ‘energy savings contract’ ‘‘(2) EXCEPTIONS.—The head of an agency is refrigerant shall not be considered an addi- and ‘energy savings performance contract’ not required to procure an Energy Star prod- tive. mean a contract that provides for the per- uct or FEMP designated product under para- ‘‘(e) REGULATIONS.—Not later than 180 days formance of services for the design, acquisi- graph (1) if the head of the agency finds in after the date of the enactment of this sec- tion, installation, testing, and, where appro- writing that— tion, the Secretary shall issue guidelines to priate, operation, maintenance, and repair, ‘‘(A) an Energy Star product or FEMP des- carry out this section.’’. of an identified energy or water conservation ignated product is not cost-effective over the (b) CONFORMING AMENDMENT.—The table of measure or series of measures at 1 or more life of the product taking energy cost sav- contents of the National Energy Conserva- locations. Such contracts shall, with respect ings into account; or tion Policy Act is further amended by insert- to an agency facility that is a public build- ‘‘(B) no Energy Star product or FEMP des- ing after the item relating to section 552 the ing (as such term is defined in section 3301 of ignated product is reasonably available that following new item: title 40, United States Code), be in compli- meets the functional requirements of the ‘‘Sec. 553. Federal procurement of energy ef- ance with the prospectus requirements and agency. ficient products.’’. procedures of section 3307 of title 40, United ‘‘(3) PROCUREMENT PLANNING.—The head of SEC. 105. ENERGY SAVINGS PERFORMANCE CON- States Code.’’. an agency shall incorporate into the speci- TRACTS. (f) ENERGY OR WATER CONSERVATION MEAS- fications for all procurements involving en- (a) LIMITATIONS.— URE.—Section 804(4) of the National Energy

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Conservation Policy Act (42 U.S.C. 8287c(4)) (b) PARTICIPANTS.—The program estab- (1) by striking ‘‘April’’ and inserting is amended to read as follows: lished under subsection (a) shall be led by a ‘‘March’’; and ‘‘(4) The term ‘energy or water conserva- university with the ability to combine the (2) by striking ‘‘October’’ and inserting tion measure’ means— expertise from numerous academic fields in- ‘‘November’’. ‘‘(A) an energy conservation measure, as cluding, at a minimum, intelligent work- (b) REPORT TO CONGRESS.—Not later than 9 defined in section 551; or places and advanced building systems and months after the date of enactment of this ‘‘(B) a water conservation measure that engineering, electrical and computer engi- Act, the Secretary of Energy shall report to improves the efficiency of water use, is life- neering, computer science, architecture, Congress on the impact this section on en- cycle cost-effective, and involves water con- urban design, and environmental and me- ergy consumption in the United States. servation, water recycling or reuse, more ef- chanical engineering. Such university shall Subtitle B—Energy Assistance and State partner with other universities and entities ficient treatment of wastewater or Programs stormwater, improvements in operation or who have established programs and the capa- bility of advancing innovative building effi- SEC. 121. LOW INCOME HOME ENERGY ASSIST- maintenance efficiencies, retrofit activities, ANCE PROGRAM. or other related activities, not at a Federal ciency technologies. (c) AUTHORIZATION OF APPROPRIATIONS.— (a) AUTHORIZATION OF APPROPRIATIONS.— hydroelectric facility.’’. Section 2602(b) of the Low-Income Home En- (g) REVIEW.—Not later than 180 days after There are authorized to be appropriated to the Secretary of Energy to carry out this ergy Assistance Act of 1981 (42 U.S.C. 8621(b)) the date of the enactment of this Act, the is amended by striking ‘‘and $2,000,000,000 for Secretary of Energy shall complete a review section $6,000,000 for each of the fiscal years each of fiscal years 2002 through 2004’’ and in- of the Energy Savings Performance Contract 2006 through 2008, to remain available until serting ‘‘and $5,100,000,000 for each of fiscal program to identify statutory, regulatory, expended. For any fiscal year in which funds years 2005 through 2007’’. and administrative obstacles that prevent are expended under this section, the Sec- retary shall provide 1⁄3 of the total amount to (b) RENEWABLE FUELS.—The Low-Income Federal agencies from fully utilizing the pro- Home Energy Assistance Act of 1981 (42 gram. In addition, this review shall identify the lead university described in subsection (b), and provide the remaining 2⁄3 to the other U.S.C. 8621 et seq.) is amended by adding at all areas for increasing program flexibility the end the following new section: and effectiveness, including audit and meas- participants referred to in subsection (b) on urement verification requirements, account- an equal basis. ‘‘RENEWABLE FUELS ing for energy use in determining savings, SEC. 109. FEDERAL BUILDING PERFORMANCE ‘‘SEC. 2612. In providing assistance pursu- contracting requirements, including the STANDARDS. ant to this title, a State, or any other person Section 305(a) of the Energy Conservation identification of additional qualified con- with which the State makes arrangements to and Production Act (42 U.S.C. 6834(a)) is tractors, and energy efficiency services cov- carry out the purposes of this title, may pur- amended— ered. The Secretary shall report these find- chase renewable fuels, including biomass.’’. (1) in paragraph (2)(A), by striking ‘‘CABO ings to Congress and shall implement identi- (c) REPORT TO CONGRESS.—The Secretary of Model Energy Code, 1992’’ and inserting ‘‘the fied administrative and regulatory changes Energy shall report to Congress on the use of 2003 International Energy Conservation to increase program flexibility and effective- renewable fuels in providing assistance under Code’’; and ness to the extent that such changes are con- the Low-Income Home Energy Assistance (2) by adding at the end the following: sistent with statutory authority. Act of 1981 (42 U.S.C. 8621 et seq.). ‘‘(3) REVISED FEDERAL BUILDING ENERGY (h) EXTENSION OF AUTHORITY.—Any energy SEC. 122. WEATHERIZATION ASSISTANCE. EFFICIENCY PERFORMANCE STANDARDS.— savings performance contract entered into (a) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) IN GENERAL.—Not later than 1 year under section 801 of the National Energy after the date of enactment of this para- Section 422 of the Energy Conservation and Conservation Policy Act (42 U.S.C. 8287) after graph, the Secretary of Energy shall estab- Production Act (42 U.S.C. 6872) is amended October 1, 2006, and before the date of enact- lish, by rule, revised Federal building energy by striking ‘‘for fiscal years 1999 through 2003 ment of this Act, shall be deemed to have efficiency performance standards that re- such sums as may be necessary’’ and insert- been entered into pursuant to such section quire that— ing ‘‘$500,000,000 for fiscal year 2006, 801 as amended by subsection (a) of this sec- ‘‘(i) if life-cycle cost-effective, for new Fed- $600,000,000 for fiscal year 2007, and tion. eral buildings— $700,000,000 for fiscal year 2008’’. (b) ELIGIBILITY.—Section 412(7) of the En- SEC. 107. VOLUNTARY COMMITMENTS TO RE- ‘‘(I) such buildings be designed so as to DUCE INDUSTRIAL ENERGY INTEN- ergy Conservation and Production Act (42 achieve energy consumption levels at least SITY. U.S.C. 6862(7)) is amended by striking ‘‘125 30 percent below those of the version current (a) VOLUNTARY AGREEMENTS.—The Sec- percent’’ both places it appears and inserting as of the date of enactment of this paragraph retary of Energy is authorized to enter into ‘‘150 percent’’. of the ASHRAE Standard or the Inter- voluntary agreements with 1 or more persons SEC. 123. STATE ENERGY PROGRAMS. in industrial sectors that consume signifi- national Energy Conservation Code, as ap- propriate; and (a) STATE ENERGY CONSERVATION PLANS.— cant amounts of primary energy per unit of Section 362 of the Energy Policy and Con- physical output to reduce the energy inten- ‘‘(II) sustainable design principles are ap- plied to the siting, design, and construction servation Act (42 U.S.C. 6322) is amended by sity of their production activities by a sig- inserting at the end the following new sub- nificant amount relative to improvements in of all new and replacement buildings; and ‘‘(ii) where water is used to achieve energy section: each sector in recent years. ‘‘(g) The Secretary shall, at least once (b) RECOGNITION.—The Secretary of En- efficiency, water conservation technologies every 3 years, invite the Governor of each ergy, in cooperation with the Administrator shall be applied to the extent they are life- State to review and, if necessary, revise the of the Environmental Protection Agency and cycle cost effective. energy conservation plan of such State sub- other appropriate Federal agencies, shall ‘‘(B) ADDITIONAL REVISIONS.—Not later mitted under subsection (b) or (e). Such re- recognize and publicize the achievements of than 1 year after the date of approval of each views should consider the energy conserva- participants in voluntary agreements under subsequent revision of the ASHRAE Stand- tion plans of other States within the region, this section. ard or the International Energy Conserva- and identify opportunities and actions car- (c) DEFINITION.—In this section, the term tion Code, as appropriate, the Secretary of ‘‘energy intensity’’ means the primary en- Energy shall determine, based on the cost-ef- ried out in pursuit of common energy con- ergy consumed per unit of physical output in fectiveness of the requirements under the servation goals.’’. (b) STATE ENERGY EFFICIENCY GOALS.—Sec- an industrial process. amendments, whether the revised standards established under this paragraph should be tion 364 of the Energy Policy and Conserva- SEC. 108. ADVANCED BUILDING EFFICIENCY tion Act (42 U.S.C. 6324) is amended to read TESTBED. updated to reflect the amendments. as follows: (a) ESTABLISHMENT.—The Secretary of En- ‘‘(C) STATEMENT ON COMPLIANCE OF NEW ergy, in consultation with the Administrator BUILDINGS.—In the budget request of the Fed- ‘‘STATE ENERGY EFFICIENCY GOALS of General Services, shall establish an Ad- eral agency for each fiscal year and each re- ‘‘SEC. 364. Each State energy conservation vanced Building Efficiency Testbed program port submitted by the Federal agency under plan with respect to which assistance is for the development, testing, and demonstra- section 548(a) of the National Energy Con- made available under this part on or after tion of advanced engineering systems, com- servation Policy Act (42 U.S.C. 8258(a)), the the date of enactment of the Energy Policy ponents, and materials to enable innovations head of each Federal agency shall include— Act of 2005 shall contain a goal, consisting of in building technologies. The program shall ‘‘(i) a list of all new Federal buildings an improvement of 25 percent or more in the evaluate efficiency concepts for government owned, operated, or controlled by the Fed- efficiency of use of energy in the State con- and industry buildings, and demonstrate the eral agency; and cerned in calendar year 2012 as compared to ability of next generation buildings to sup- ‘‘(ii) a statement concerning whether the calendar year 1990, and may contain interim port individual and organizational produc- Federal buildings meet or exceed the revised goals.’’. tivity and health (including by improving in- standards established under this para- (c) AUTHORIZATION OF APPROPRIATIONS.— door air quality) as well as flexibility and graph.’’. Section 365(f) of the Energy Policy and Con- technological change to improve environ- SEC. 111. DAYLIGHT SAVINGS. servation Act (42 U.S.C. 6325(f)) is amended mental sustainability. Such program shall (a) REPEAL.—Section 3(a) of the Uniform by striking ‘‘for fiscal years 1999 through 2003 complement and not duplicate existing na- Time Act of 1966 (15 U.S.C. 260a(a)) is amend- such sums as may be necessary’’ and insert- tional programs. ed— ing ‘‘$100,000,000 for each of the fiscal years

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00064 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.050 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2217 2006 and 2007 and $125,000,000 for fiscal year mined by the State energy office) to, the res- tion as defined in or established pursuant to 2008’’. idential Energy Star product. the Alaska Native Claims Settlement Act (43 SEC. 124. ENERGY EFFICIENT APPLIANCE RE- (f) AUTHORIZATION OF APPROPRIATIONS.— U.S.C. 1601 et seq.), that is recognized as eli- BATE PROGRAMS. There are authorized to be appropriated to gible for the special programs and services (a) DEFINITIONS.—In this section: the Secretary to carry out this section provided by the United States to Indians be- (1) ELIGIBLE STATE.—The term ‘‘eligible $50,000,000 for each of the fiscal years 2006 cause of their status as Indians. State’’ means a State that meets the re- through 2010. (d) AUTHORIZATION OF APPROPRIATIONS.— quirements of subsection (b). SEC. 125. ENERGY EFFICIENT PUBLIC BUILD- For the purposes of this section there are au- (2) ENERGY STAR PROGRAM.—The term ‘‘En- INGS. thorized to be appropriated to the Secretary ergy Star program’’ means the program es- (a) GRANTS.—The Secretary of Energy may of Energy $20,000,000 for each of fiscal years tablished by section 324A of the Energy Pol- make grants to the State agency responsible 2006 through 2008. icy and Conservation Act. for developing State energy conservation Subtitle C—Energy Efficient Products plans under section 362 of the Energy Policy (3) RESIDENTIAL ENERGY STAR PRODUCT.— SEC. 131. ENERGY STAR PROGRAM. The term ‘‘residential Energy Star product’’ and Conservation Act (42 U.S.C. 6322), or, if (a) AMENDMENT.—The Energy Policy and means a product for a residence that is rated no such agency exists, a State agency des- Conservation Act (42 U.S.C. 6201 et seq.) is for energy efficiency under the Energy Star ignated by the Governor of the State, to as- amended by inserting the following after sec- program. sist units of local government in the State in tion 324: (4) SECRETARY.—The term ‘‘Secretary’’ improving the energy efficiency of public means the Secretary of Energy. buildings and facilities— ‘‘SEC. 324A. ENERGY STAR PROGRAM. (5) STATE ENERGY OFFICE.—The term (1) through construction of new energy ef- ‘‘There is established at the Department of ‘‘State energy office’’ means the State agen- ficient public buildings that use at least 30 Energy and the Environmental Protection cy responsible for developing State energy percent less energy than a comparable public Agency a voluntary program to identify and conservation plans under section 362 of the building constructed in compliance with promote energy-efficient products and build- Energy Policy and Conservation Act (42 standards prescribed in the most recent ings in order to reduce energy consumption, U.S.C. 6322). version of the International Energy Con- improve energy security, and reduce pollu- (6) STATE PROGRAM.—The term ‘‘State pro- servation Code, or a similar State code in- tion through voluntary labeling of or other gram’’ means a State energy efficient appli- tended to achieve substantially equivalent forms of communication about products and ance rebate program described in subsection efficiency levels; or buildings that meet the highest energy effi- (b)(1). (2) through renovation of existing public ciency standards. Responsibilities under the (b) ELIGIBLE STATES.—A State shall be eli- buildings to achieve reductions in energy use program shall be divided between the De- gible to receive an allocation under sub- of at least 30 percent as compared to the partment of Energy and the Environmental section (c) if the State— baseline energy use in such buildings prior to Protection Agency consistent with the terms (1) establishes (or has established) a State renovation, assuming a 3-year, weather-nor- of agreements between the 2 agencies. The energy efficient appliance rebate program to malized average for calculating such base- Administrator and the Secretary shall— provide rebates to residential consumers for line. ‘‘(1) promote Energy Star compliant tech- the purchase of residential Energy Star prod- (b) ADMINISTRATION.—State energy offices nologies as the preferred technologies in the ucts to replace used appliances of the same receiving grants under this section shall— marketplace for achieving energy efficiency type; (1) maintain such records and evidence of and to reduce pollution; (2) submits an application for the alloca- compliance as the Secretary may require; ‘‘(2) work to enhance public awareness of tion at such time, in such form, and con- and the Energy Star label, including special out- taining such information as the Secretary (2) develop and distribute information and reach to small businesses; may require; and materials and conduct programs to provide ‘‘(3) preserve the integrity of the Energy (3) provides assurances satisfactory to the technical services and assistance to encour- Star label; Secretary that the State will use the alloca- age planning, financing, and design of energy ‘‘(4) solicit comments from interested par- tion to supplement, but not supplant, funds efficient public buildings by units of local ties prior to establishing or revising an En- made available to carry out the State pro- government. ergy Star product category, specification, or gram. (c) AUTHORIZATION OF APPROPRIATIONS.— criterion (or effective dates for any of the (c) AMOUNT OF ALLOCATIONS.— For the purposes of this section, there are foregoing); (1) IN GENERAL.—Subject to paragraph (2), authorized to be appropriated to the Sec- ‘‘(5) upon adoption of a new or revised for each fiscal year, the Secretary shall allo- retary of Energy $30,000,000 for each of fiscal product category, specification, or criterion, cate to the State energy office of each eligi- years 2006 through 2010. Not more than 10 provide reasonable notice to interested par- ble State to carry out subsection (d) an percent of appropriated funds shall be used ties of any changes (including effective amount equal to the product obtained by for administration. dates) in product categories, specifications, or criteria along with an explanation of such multiplying the amount made available SEC. 126. LOW INCOME COMMUNITY ENERGY EF- under subsection (f) for the fiscal year by the FICIENCY PILOT PROGRAM. changes and, where appropriate, responses to comments submitted by interested parties; ratio that the population of the State in the (a) GRANTS.—The Secretary of Energy is most recent calendar year for which data are authorized to make grants to units of local and available bears to the total population of all government, private, non-profit community ‘‘(6) provide appropriate lead time (which eligible States in that calendar year. development organizations, and Indian tribe shall be 9 months, unless the Agency or De- (2) MINIMUM ALLOCATIONS.—For each fiscal economic development entities to improve partment determines otherwise) prior to the year, the amounts allocated under this sub- energy efficiency; identify and develop alter- effective date for a new or a significant revi- section shall be adjusted proportionately so native, renewable, and distributed energy sion to a product category, specification, or that no eligible State is allocated a sum that supplies; and increase energy conservation in criterion, taking into account the timing re- is less than an amount determined by the low income rural and urban communities. quirements of the manufacturing, product marketing, and distribution process for the Secretary. (b) PURPOSE OF GRANTS.—The Secretary (d) USE OF ALLOCATED FUNDS.—The alloca- may make grants on a competitive basis specific product addressed.’’. tion to a State energy office under sub- for— (b) TABLE OF CONTENTS AMENDMENT.—The section (c) may be used to pay up to 50 per- (1) investments that develop alternative, table of contents of the Energy Policy and cent of the cost of establishing and carrying renewable, and distributed energy supplies; Conservation Act is amended by inserting out a State program. (2) energy efficiency projects and energy after the item relating to section 324 the fol- lowing new item: (e) ISSUANCE OF REBATES.—Rebates may be conservation programs; provided to residential consumers that meet (3) studies and other activities that im- ‘‘Sec. 324A. Energy Star program.’’. the requirements of the State program. The prove energy efficiency in low income rural SEC. 132. HVAC MAINTENANCE CONSUMER EDU- amount of a rebate shall be determined by and urban communities; CATION PROGRAM. the State energy office, taking into consider- (4) planning and development assistance Section 337 of the Energy Policy and Con- ation— for increasing the energy efficiency of build- servation Act (42 U.S.C. 6307) is amended by (1) the amount of the allocation to the ings and facilities; and adding at the end the following: State energy office under subsection (c); (5) technical and financial assistance to ‘‘(c) HVAC MAINTENANCE.—For the purpose (2) the amount of any Federal or State tax local government and private entities on de- of ensuring that installed air conditioning incentive available for the purchase of the veloping new renewable and distributed and heating systems operate at their max- residential Energy Star product; and sources of power or combined heat and power imum rated efficiency levels, the Secretary (3) the difference between the cost of the generation. shall, not later than 180 days after the date residential Energy Star product and the cost (c) DEFINITION.—For purposes of this sec- of enactment of this subsection, carry out a of an appliance that is not a residential En- tion, the term ‘‘Indian tribe’’ means any In- program to educate homeowners and small ergy Star product, but is of the same type as, dian tribe, band, nation, or other organized business owners concerning the energy sav- and is the nearest capacity, performance, group or community, including any Alaskan ings resulting from properly conducted and other relevant characteristics (as deter- Native village or regional or village corpora- maintenance of air conditioning, heating,

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00065 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.050 H20PT1 H2218 CONGRESSIONAL RECORD — HOUSE April 20, 2005 and ventilating systems. The Secretary shall at least 20 percent more than the lowest gram of the Environmental Protection Agen- carry out the program in a cost-shared man- voltage tap; cy for illuminated exit signs. ner in cooperation with the Administrator of ‘‘(ii) transformers, such as those commonly ‘‘(10) Test procedures for distribution the Environmental Protection Agency and known as drive transformers, rectifier trans- transformers and low voltage dry-type dis- such other entities as the Secretary con- formers, auto-transformers, Uninterruptible tribution transformers shall be based on the siders appropriate, including industry trade Power System transformers, impedance ‘Standard Test Method for Measuring the associations, industry members, and energy transformers, regulating transformers, Energy Consumption of Distribution Trans- efficiency organizations. sealed and nonventilating transformers, ma- formers’ prescribed by the National Elec- ‘‘(d) SMALL BUSINESS EDUCATION AND AS- chine tool transformers, welding trans- trical Manufacturers Association (NEMA TP SISTANCE.—The Administrator of the Small formers, grounding transformers, or testing 2–1998). The Secretary may review and revise Business Administration, in consultation transformers, that are designed to be used in this test procedure. For purposes of section with the Secretary of Energy and the Admin- a special purpose application and are un- 346(a), this test procedure shall be deemed to istrator of the Environmental Protection likely to be used in general purpose applica- be testing requirements prescribed by the Agency, shall develop and coordinate a Gov- tions; or Secretary under section 346(a)(1) for distribu- ernment-wide program, building on the ex- ‘‘(iii) any transformer not listed in clause tion transformers for which the Secretary isting Energy Star for Small Business Pro- (ii) that is excluded by the Secretary by rule makes a determination that energy con- gram, to assist small businesses to become because— servation standards would be technologically more energy efficient, understand the cost ‘‘(I) the transformer is designed for a spe- feasible and economically justified, and savings obtainable through efficiencies, and cial application; would result in significant energy savings. identify financing options for energy effi- ‘‘(II) the transformer is unlikely to be used ‘‘(11) Test procedures for traffic signal ciency upgrades. The Secretary and the Ad- in general purpose applications; and modules shall be based on the test method ministrator of the Small Business Adminis- ‘‘(III) the application of standards to the used under the Energy Star program of the tration shall make the program information transformer would not result in significant Environmental Protection Agency for traffic available directly to small businesses and energy savings. signal modules, as in effect on the date of en- through other Federal agencies, including ‘‘(37) The term ‘low-voltage dry-type dis- actment of this paragraph. the Federal Emergency Management Pro- tribution transformer’ means a distribution ‘‘(12) Test procedures for medium base gram and the Department of Agriculture.’’. transformer that— compact fluorescent lamps shall be based on ‘‘(A) has an input voltage of 600 volts or SEC. 133. ENERGY CONSERVATION STANDARDS the test methods used under the August 9, less; FOR ADDITIONAL PRODUCTS. 2001, version of the Energy Star program of ‘‘(B) is air-cooled; and (a) DEFINITIONS.—Section 321 of the Energy the Environmental Protection Agency and ‘‘(C) does not use oil as a coolant. Policy and Conservation Act (42 U.S.C. 6291) Department of Energy for compact fluores- ‘‘(38) The term ‘standby mode’ means the is amended— cent lamps. Covered products shall meet all lowest power consumption mode that— (1) in paragraph (30)(S), by striking the pe- test requirements for regulated parameters ‘‘(A) cannot be switched off or influenced riod and adding at the end the following: in section 325(bb). However, covered products by the user; and ‘‘but does not include any lamp specifically may be marketed prior to completion of ‘‘(B) may persist for an indefinite time designed to be used for special purpose appli- lamp life and lumen maintenance at 40 per- when an appliance is connected to the main cations and that is unlikely to be used in cent of rated life testing provided manufac- electricity supply and used in accordance general purpose applications such as those turers document engineering predictions and with the manufacturer’s instructions, described in subparagraph (D), and also does analysis that support expected attainment of not include any lamp not described in sub- as defined on an individual product basis by lumen maintenance at 40 percent rated life paragraph (D) that is excluded by the Sec- the Secretary. and lamp life time. retary, by rule, because the lamp is designed ‘‘(39) The term ‘torchiere’ means a portable ‘‘(13) The Secretary shall, not later than 18 for special applications and is unlikely to be electric lamp with a reflector bowl that di- months after the date of enactment of this used in general purpose applications.’’; and rects light upward so as to give indirect illu- paragraph, prescribe testing requirements (2) by adding at the end the following: mination. for ceiling fans and ceiling fan light kits.’’; ‘‘(32) The term ‘battery charger’ means a ‘‘(40) The term ‘traffic signal module’ and device that charges batteries for consumer means a standard 8-inch (200mm) or 12-inch (2) by adding at the end the following: products and includes battery chargers em- (300mm) traffic signal indication, consisting bedded in other consumer products. of a light source, a lens, and all other parts ‘‘(f) ADDITIONAL CONSUMER AND COMMER- ‘‘(33) The term ‘commercial refrigerators, necessary for operation, that communicates CIAL PRODUCTS.—The Secretary shall, not freezers, and refrigerator-freezers’ means re- movement messages to drivers through red, later than 24 months after the date of enact- frigerators, freezers, or refrigerator-freezers amber, and green colors. ment of this subsection, prescribe testing re- that— ‘‘(41) The term ‘transformer’ means a de- quirements for suspended ceiling fans, refrig- ‘‘(A) are not consumer products regulated vice consisting of 2 or more coils of insulated erated bottled or canned beverage vending under this Act; and wire that transfers alternating current by machines, and commercial refrigerators, ‘‘(B) incorporate most components in- electromagnetic induction from 1 coil to an- freezers, and refrigerator-freezers. Such test- volved in the vapor-compression cycle and other to change the original voltage or cur- ing requirements shall be based on existing the refrigerated compartment in a single rent value. test procedures used in industry to the ex- package. ‘‘(42) The term ‘unit heater’ means a self- tent practical and reasonable. In the case of ‘‘(34) The term ‘external power supply’ contained fan-type heater designed to be in- suspended ceiling fans, such test procedures means an external power supply circuit that stalled within the heated space, except that shall include efficiency at both maximum is used to convert household electric current such term does not include a warm air fur- output and at an output no more than 50 per- into either DC current or lower-voltage AC nace. cent of the maximum output.’’. current to operate a consumer product. ‘‘(43) The term ‘ceiling fan’ means a non- (c) NEW STANDARDS.—Section 325 of the En- ‘‘(35) The term ‘illuminated exit sign’ portable device that is suspended from a ceil- ergy Policy and Conservation Act (42 U.S.C. means a sign that— ing for circulating air via the rotation of fan 6295) is amended by adding at the end the fol- ‘‘(A) is designed to be permanently fixed in blades. lowing: place to identify an exit; and ‘‘(44) The term ‘ceiling fan light kit’ means ‘‘(u) BATTERY CHARGER AND EXTERNAL ‘‘(B) consists of an electrically powered in- equipment designed to provide light from a POWER SUPPLY ELECTRIC ENERGY CONSUMP- tegral light source that illuminates the leg- ceiling fan which can be— TION.— end ‘EXIT’ and any directional indicators ‘‘(A) integral, such that the equipment is ‘‘(1) INITIAL RULEMAKING.—(A) The Sec- and provides contrast between the legend, attached to the ceiling fan prior to the time retary shall, within 18 months after the date any directional indicators, and the back- of retail sale; or of enactment of this subsection, prescribe by ground. ‘‘(B) attachable, such that at the time of notice and comment, definitions and test ‘‘(36)(A) Except as provided in subpara- retail sale the equipment is not physically procedures for the power use of battery char- graph (B), the term ‘distribution trans- attached to the ceiling fan, but may be in- gers and external power supplies. In estab- former’ means a transformer that— cluded inside the ceiling fan package at the lishing these test procedures, the Secretary ‘‘(i) has an input voltage of 34.5 kilovolts time of sale or sold separately for subsequent shall consider, among other factors, existing or less; attachment to the fan.’’. definitions and test procedures used for ‘‘(ii) has an output voltage of 600 volts or (b) TEST PROCEDURES.—Section 323 of the measuring energy consumption in standby less; and Energy Policy and Conservation Act (42 mode and other modes and assess the current ‘‘(iii) is rated for operation at a frequency U.S.C. 6293) is amended— and projected future market for battery of 60 Hertz. (1) in subsection (b), by adding at the end chargers and external power supplies. This ‘‘(B) The term ‘distribution transformer’ the following: assessment shall include estimates of the does not include— ‘‘(9) Test procedures for illuminated exit significance of potential energy savings from ‘‘(i) transformers with multiple voltage signs shall be based on the test method used technical improvements to these products taps, with the highest voltage tap equaling under Version 2.0 of the Energy Star pro- and suggested product classes for standards.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00066 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.050 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2219 Prior to the end of this time period, the Sec- ary 1, 2006, shall meet the performance re- ‘‘(i) exempting or setting different stand- retary shall hold a scoping workshop to dis- quirements used under the Energy Star pro- ards for certain product classes for which the cuss and receive comments on plans for de- gram of the Environmental Protection Agen- primary standards are not technically fea- veloping energy conservation standards for cy for traffic signals, as in effect on the date sible or economically justified; and energy use for these products. of enactment of this subsection, and shall be ‘‘(ii) establishing separate exempted prod- ‘‘(B) The Secretary shall, within 3 years installed with compatible, electrically con- uct classes for highly decorative fans for after the date of enactment of this sub- nected signal control interface devices and which air movement performance is a sec- section, issue a final rule that determines conflict monitoring systems. ondary design feature. whether energy conservation standards shall ‘‘(aa) UNIT HEATERS.—Unit heaters manu- ‘‘(C) APPLICATION.—Any air movement be issued for battery chargers and external factured on or after the date that is 3 years standard prescribed under this subsection power supplies or classes thereof. For each after the date of enactment of this sub- shall apply to products manufactured on or product class, any such standards shall be section shall be equipped with an intermit- after the date that is 3 years after the date set at the lowest level of energy use that— tent ignition device and shall have either of publication of a final rule establishing the ‘‘(i) meets the criteria and procedures of power venting or an automatic flue damper. standard.’’. subsections (o), (p), (q), (r), (s), and (t); and ‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT (d) RESIDENTIAL FURNACE FANS.—Section ‘‘(ii) will result in significant overall an- LAMPS.—Bare lamp and covered lamp (no re- 325(f)(3) of the Energy Policy and Conserva- nual energy savings, considering both stand- flector) medium base compact fluorescent tion Act (42 U.S.C. 6295(f)(3)) is amended by by mode and other operating modes. lamps manufactured on or after January 1, adding the following new subparagraph at ‘‘(2) REVIEW OF STANDBY ENERGY USE IN COV- 2006, shall meet the following requirements the end: ERED PRODUCTS.—In determining pursuant to prescribed by the August 9, 2001, version of ‘‘(D) Notwithstanding any provision of this section 323 whether test procedures and en- the Energy Star Program Requirements for Act, the Secretary may consider, and pre- ergy conservation standards pursuant to this Compact Fluorescent Lamps, Energy Star scribe, if the requirements of subsection (o) section should be revised, the Secretary shall Eligibility Criteria, Energy-Efficiency Speci- of this section are met, energy efficiency or consider, for covered products that are major fication issued by the Environmental Protec- energy use standards for electricity used for sources of standby mode energy consump- tion Agency and Department of Energy: min- purposes of circulating air through duct tion, whether to incorporate standby mode imum initial efficacy; lumen maintenance at work.’’. into such test procedures and energy con- 1000 hours; lumen maintenance at 40 percent SEC. 134. ENERGY LABELING. servation standards, taking into account, of rated life; rapid cycle stress test; and lamp (a) RULEMAKING ON EFFECTIVENESS OF CON- among other relevant factors, standby mode life. The Secretary may, by rule, establish SUMER PRODUCT LABELING.—Section 324(a)(2) power consumption compared to overall requirements for color quality (CRI); power of the Energy Policy and Conservation Act product energy consumption. factor; operating frequency; and maximum (42 U.S.C. 6294(a)(2)) is amended by adding at ‘‘(3) RULEMAKING.—The Secretary shall not allowable start time based on the require- the end the following: propose a standard under this section unless ments prescribed by the August 9, 2001, ‘‘(F) Not later than 3 months after the date the Secretary has issued applicable test pro- version of the Energy Star Program Require- of enactment of this subparagraph, the Com- cedures for each product pursuant to section ments for Compact Fluorescent Lamps. The mission shall initiate a rulemaking to con- 323. Secretary may, by rule, revise these require- sider the effectiveness of the current con- ‘‘(4) EFFECTIVE DATE.—Any standard issued ments or establish other requirements con- sumer products labeling program in assisting under this subsection shall be applicable to sidering energy savings, cost effectiveness, consumers in making purchasing decisions products manufactured or imported 3 years and consumer satisfaction. and improving energy efficiency and to con- after the date of issuance. ‘‘(cc) EFFECTIVE DATE.—Section 327 shall sider changes to the labeling rules that ‘‘(5) VOLUNTARY PROGRAMS.—The Secretary apply— would improve the effectiveness of consumer and the Administrator shall collaborate and ‘‘(1) to products for which standards are to product labels. Such rulemaking shall be develop programs, including programs pursu- be established under subsections (u) and (v) completed not later than 2 years after the ant to section 324A (relating to Energy Star on the date on which a final rule is issued by date of enactment of this subparagraph. ‘‘(G)(i) Not later than 18 months after date Programs) and other voluntary industry the Department of Energy, except that any of enactment of this subparagraph, the Com- agreements or codes of conduct, that are de- State or local standards prescribed or en- mission shall prescribe by rule, pursuant to signed to reduce standby mode energy use. acted for any such product prior to the date this section, labeling requirements for the ‘‘(v) SUSPENDED CEILING FANS, VENDING on which such final rule is issued shall not electricity used by ceiling fans to circulate MACHINES, AND COMMERCIAL REFRIGERATORS, be preempted until the standard established air in a room. FREEZERS, AND REFRIGERATOR-FREEZERS.— under subsection (u) or (v) for that product ‘‘(ii) The rule prescribed under clause (i) The Secretary shall not later than 36 months takes effect; and shall apply to products manufactured after after the date on which testing requirements ‘‘(2) to products for which standards are es- the later of— are prescribed by the Secretary pursuant to tablished under subsections (w) through (bb) ‘‘(I) January 1, 2009; or section 323(f), prescribe, by rule, energy con- on the date of enactment of those sub- ‘‘(II) the date that is 60 days after the final servation standards for suspended ceiling sections, except that any State or local rule is prescribed.’’. fans, refrigerated bottled or canned beverage standards prescribed or enacted prior to the (b) RULEMAKING ON LABELING FOR ADDI- vending machines, and commercial refrig- date of enactment of those subsections shall TIONAL PRODUCTS.—Section 324(a) of the En- erators, freezers, and refrigerator-freezers. In not be preempted until the standards estab- ergy Policy and Conservation Act (42 U.S.C. establishing standards under this subsection, lished under subsections (w) through (bb) 6294(a)) is further amended by adding at the the Secretary shall use the criteria and pro- take effect. cedures contained in subsections (o) and (p). end the following: ‘‘(dd) CEILING FANS.— ‘‘(5) The Secretary or the Commission, as Any standard prescribed under this sub- ‘‘(1) FEATURES.—All ceiling fans manufac- appropriate, may, for covered products re- section shall apply to products manufactured tured on or after January 1, 2006, shall have ferred to in subsections (u) through (aa) of 3 years after the date of publication of a the following features: section 325, prescribe, by rule, pursuant to final rule establishing such standard. ‘‘(A) Lighting controls operate independ- ‘‘(w) ILLUMINATED EXIT SIGNS.—Illumi- this section, labeling requirements for such ently from fan speed controls. products after a test procedure has been set nated exit signs manufactured on or after ‘‘(B) Adjustable speed controls (either January 1, 2006, shall meet the Version 2.0 pursuant to section 323. In the case of prod- more than 1 speed or variable speed). ucts to which TP–1 standards under section Energy Star Program performance require- ‘‘(C) The capability of reversible fan ac- ments for illuminated exit signs prescribed 325(y) apply, labeling requirements shall be tion, except for fans sold for industrial appli- based on the ‘Standard for the Labeling of by the Environmental Protection Agency. cations, outdoor applications, and where ‘‘(x) TORCHIERES.—Torchieres manufac- Distribution Transformer Efficiency’ pre- safety standards would be violated by the tured on or after January 1, 2006— scribed by the National Electrical Manufac- use of the reversible mode. The Secretary ‘‘(1) shall consume not more than 190 watts turers Association (NEMA TP–3) as in effect may promulgate regulations to define in of power; and upon the date of enactment of this para- greater detail the exceptions provided under ‘‘(2) shall not be capable of operating with graph.’’. this subparagraph but may not substantively lamps that total more than 190 watts. SEC. 135. PREEMPTION. ‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION expand the exceptions. Section 327 of the Energy Policy and Con- TRANSFORMERS.—The efficiency of low volt- ‘‘(2) REVISED STANDARDS.— servation Act (42 U.S.C. 6297) is amended by age dry-type distribution transformers man- ‘‘(A) IN GENERAL.—Notwithstanding any adding at the end the following: ufactured on or after January 1, 2006, shall be provision of this Act, if the requirements of ‘‘(h) CEILING FANS.—Effective on January the Class I Efficiency Levels for distribution subsections (o) and (p) are met, the Sec- 1, 2006, this section shall apply to and super- transformers specified in Table 4–2 of the retary may consider and prescribe energy ef- sede all State and local standards prescribed ‘Guide for Determining Energy Efficiency for ficiency or energy use standards for elec- or enacted for ceiling fans and ceiling fan Distribution Transformers’ published by the tricity used by ceiling fans to circulate air in light kits.’’. National Electrical Manufacturers Associa- a room. SEC. 136. STATE CONSUMER PRODUCT ENERGY tion (NEMA TP–1–2002). ‘‘(B) SPECIAL CONSIDERATION.—If the Sec- EFFICIENCY STANDARDS. ‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic sig- retary sets such standards, the Secretary Section 327 of the Energy Policy and Con- nal modules manufactured on or after Janu- shall consider— servation Act (42 U.S.C. 6297) is amended by

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adding at the end the following new sub- (f) ELDERLY HOUSING MORTGAGE INSUR- are defined in section 553 of the National En- section: ANCE.—Section 231(c)(2)(C) of the National ergy Conservation Policy Act (as amended ‘‘(h) LIMITATION ON PREEMPTION.—Sub- Housing Act (12 U.S.C. 1715v(c)(2)(C)) is by this title), unless the purchase of energy- sections (a) and (b) shall not apply with re- amended by striking ‘‘20 per centum’’ and in- efficient appliances is not cost-effective to spect to State regulation of energy consump- serting ‘‘30 percent’’. the agency. tion or water use of any covered product dur- (g) CONDOMINIUM HOUSING MORTGAGE IN- SEC. 148. ENERGY EFFICIENCY STANDARDS. ing any period of time— SURANCE.—Section 234(j) of the National Section 109 of the Cranston-Gonzalez Na- ‘‘(1) after the date which is 3 years after a Housing Act (12 U.S.C. 1715y(j)) is amended tional Affordable Housing Act (42 U.S.C. Federal standard is required by law to be es- by striking ‘‘20 per centum’’ and inserting 12709) is amended— tablished or revised, but has not been estab- ‘‘30 percent’’. (1) in subsection (a)— lished or revised; and SEC. 144. PUBLIC HOUSING CAPITAL FUND. (A) in paragraph (1)— ‘‘(2) before the date on which such Federal Section 9 of the United States Housing Act (i) by striking ‘‘1 year after the date of the standard is established or revised.’’. of 1937 (42 U.S.C. 1437g) is amended— enactment of the Energy Policy Act of 1992’’ Subtitle D—Public Housing (1) in subsection (d)(1)— and inserting ‘‘September 30, 2006’’; (ii) in subparagraph (A), by striking ‘‘and’’ SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFI- (A) in subparagraph (I), by striking ‘‘and’’ at the end; at the end; CIENT, AFFORDABLE HOUSING. (iii) in subparagraph (B), by striking the Section 4(b) of the HUD Demonstration (B) in subparagraph (J), by striking the pe- riod at the end and inserting a semicolon; period at the end and inserting ‘‘; and’’; and Act of 1993 (42 U.S.C. 9816 note) is amended— (iv) by adding at the end the following: (1) in paragraph (1), by inserting before the and (C) by adding at the end the following new ‘‘(C) rehabilitation and new construction of semicolon at the end the following: ‘‘, includ- public and assisted housing funded by HOPE ing capabilities regarding the provision of subparagraphs: ‘‘(K) improvement of energy and water-use VI revitalization grants under section 24 of energy efficient, affordable housing and resi- the United States Housing Act of 1937 (42 dential energy conservation measures’’; and efficiency by installing fixtures and fittings that conform to the American Society of Me- U.S.C. 1437v), where such standards are de- (2) in paragraph (2), by inserting before the termined to be cost effective by the Sec- semicolon the following: ‘‘, including such chanical Engineers/American National Standards Institute standards A112.19.2–1998 retary of Housing and Urban Development.’’; activities relating to the provision of energy and efficient, affordable housing and residential and A112.18.1–2000, or any revision thereto, applicable at the time of installation, and by (B) in paragraph (2), by striking ‘‘Council energy conservation measures that benefit of American’’ and all that follows through low-income families’’. increasing energy efficiency and water con- servation by such other means as the Sec- ‘‘90.1–1989’)’’ and inserting ‘‘2003 Inter- SEC. 142. INCREASE OF CDBG PUBLIC SERVICES retary determines are appropriate; and national Energy Conservation Code’’; CAP FOR ENERGY CONSERVATION (2) in subsection (b)— AND EFFICIENCY ACTIVITIES. ‘‘(L) integrated utility management and (A) by striking ‘‘within 1 year after the Section 105(a)(8) of the Housing and Com- capital planning to maximize energy con- servation and efficiency measures.’’; and date of the enactment of the Energy Policy munity Development Act of 1974 (42 U.S.C. Act of 1992’’ and inserting ‘‘by September 30, 5305(a)(8)) is amended— (2) in subsection (e)(2)(C)— (A) by striking ‘‘The’’ and inserting the 2006’’; and (1) by inserting ‘‘or efficiency’’ after ‘‘en- (B) by striking ‘‘CABO’’ and all that fol- ergy conservation’’; following: ‘‘(i) IN GENERAL.—The’’; and lows through ‘‘1989’’ and inserting ‘‘the 2003 (2) by striking ‘‘, and except that’’ and in- International Energy Conservation Code’’; serting ‘‘; except that’’; and (B) by adding at the end the following: ‘‘(ii) THIRD PARTY CONTRACTS.—Contracts and (3) by inserting before the semicolon at the (3) in subsection (c)— end the following: ‘‘; and except that each described in clause (i) may include contracts (A) in the heading, by striking ‘‘MODEL EN- percentage limitation under this paragraph for equipment conversions to less costly util- ERGY CODE’’ and inserting ‘‘THE INTER- on the amount of assistance provided under ity sources, projects with resident-paid utili- ties, and adjustments to frozen base year NATIONAL ENERGY CONSERVATION CODE’’; and this title that may be used for the provision (B) by striking ‘‘CABO’’ and all that fol- of public services is hereby increased by 10 consumption, including systems repaired to meet applicable building and safety codes lows through ‘‘1989’’ and inserting ‘‘the 2003 percent, but such percentage increase may International Energy Conservation Code’’. be used only for the provision of public serv- and adjustments for occupancy rates in- SEC. 149. ENERGY STRATEGY FOR HUD. ices concerning energy conservation or effi- creased by rehabilitation. The Secretary of Housing and Urban Devel- ciency’’. ‘‘(iii) TERM OF CONTRACT.—The total term opment shall develop and implement an inte- SEC. 143. FHA MORTGAGE INSURANCE INCEN- of a contract described in clause (i) shall not exceed 20 years to allow longer payback peri- grated strategy to reduce utility expenses TIVES FOR ENERGY EFFICIENT through cost-effective energy conservation HOUSING. ods for retrofits, including windows, heating system replacements, wall insulation, site- and efficiency measures and energy efficient (a) SINGLE FAMILY HOUSING MORTGAGE IN- design and construction of public and as- based generation, advanced energy savings SURANCE.—Section 203(b)(2) of the National sisted housing. The energy strategy shall in- technologies, including renewable energy Housing Act (12 U.S.C. 1709(b)(2)) is amended, clude the development of energy reduction generation, and other such retrofits.’’. in the first undesignated paragraph begin- goals and incentives for public housing agen- ning after subparagraph (B)(ii)(IV) (relating SEC. 145. GRANTS FOR ENERGY-CONSERVING IM- cies. The Secretary shall submit a report to to solar energy systems), by striking ‘‘20 per- PROVEMENTS FOR ASSISTED HOUS- Congress, not later than 1 year after the date ING. cent’’ and inserting ‘‘30 percent’’. of the enactment of this Act, on the energy Section 251(b)(1) of the National Energy (b) MULTIFAMILY HOUSING MORTGAGE IN- strategy and the actions taken by the De- Conservation Policy Act (42 U.S.C. 8231(1)) is SURANCE.—Section 207(c) of the National partment of Housing and Urban Development Housing Act (12 U.S.C. 1713(c)) is amended, in amended— to monitor the energy usage of public hous- the last undesignated paragraph beginning (1) by striking ‘‘financed with loans’’ and ing agencies and shall submit an update after paragraph (3) (relating to solar energy inserting ‘‘assisted’’; every 2 years thereafter on progress in im- systems and residential energy conservation (2) by inserting after ‘‘1959,’’ the following: plementing the strategy. ‘‘which are eligible multifamily housing measures), by striking ‘‘20 percent’’ and in- TITLE II—RENEWABLE ENERGY serting ‘‘30 percent’’. projects (as such term is defined in section Subtitle A—General Provisions (c) COOPERATIVE HOUSING MORTGAGE INSUR- 512 of the Multifamily Assisted Housing Re- SEC. 201. ASSESSMENT OF RENEWABLE ENERGY ANCE.—Section 213(p) of the National Hous- form and Affordability Act of 1997 (42 U.S.C. RESOURCES. ing Act (12 U.S.C. 1715e(p)) is amended by 1437f note)) and are subject to mortgage re- (a) RESOURCE ASSESSMENT.—Not later than striking ‘‘20 per centum’’ and inserting ‘‘30 structuring and rental assistance sufficiency 6 months after the date of enactment of this percent’’. plans under such Act,’’; and (3) by inserting after the period at the end Act, and each year thereafter, the Secretary (d) REHABILITATION AND NEIGHBORHOOD of Energy shall review the available assess- CONSERVATION HOUSING MORTGAGE INSUR- of the first sentence the following new sen- tence: ‘‘Such improvements may also include ments of renewable energy resources within ANCE.—Section 220(d)(3)(B)(iii)(IV) of the Na- the United States, including solar, wind, bio- the installation of energy and water con- tional Housing Act (12 U.S.C. mass, ocean (tidal, wave, current, and ther- serving fixtures and fittings that conform to 1715k(d)(3)(B)(iii)(IV)) is amended— mal), geothermal, and hydroelectric energy the American Society of Mechanical Engi- (1) by striking ‘‘with respect to rehabilita- resources, and undertake new assessments as neers/American National Standards Institute tion projects involving not more than five necessary, taking into account changes in family units,’’; and standards A112.19.2–1998 and A112.18.1–2000, or market conditions, available technologies, (2) by striking ‘‘20 per centum’’ and insert- any revision thereto, applicable at the time and other relevant factors. ing ‘‘30 percent’’. of installation.’’. (b) CONTENTS OF REPORTS.—Not later than (e) LOW-INCOME MULTIFAMILY HOUSING SEC. 147. ENERGY-EFFICIENT APPLIANCES. 1 year after the date of enactment of this MORTGAGE INSURANCE.—Section 221(k) of the In purchasing appliances, a public housing Act, and each year thereafter, the Secretary National Housing Act (12 U.S.C. 1715l(k)) is agency shall purchase energy-efficient appli- shall publish a report based on the assess- amended by striking ‘‘20 per centum’’ and in- ances that are Energy Star products or ment under subsection (a). The report shall serting ‘‘30 percent’’. FEMP-designated products, as such terms contain—

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(1) a detailed inventory describing the ‘‘(2) AVAILABILITY OF FUNDS.—Funds made Territorial Energy Assessment prepared pur- available amount and characteristics of the available under paragraph (1) shall remain suant to subsection (c) reveals the need to renewable energy resources; and available until expended.’’. reassess the state of energy production, con- (2) such other information as the Secretary SEC. 203. FEDERAL PURCHASE REQUIREMENT. sumption, infrastructure, reliance on im- believes would be useful in developing such (a) REQUIREMENT.—The President, acting ported energy, opportunities for energy con- renewable energy resources, including de- through the Secretary of Energy, shall seek servation and increased energy efficiency, scriptions of surrounding terrain, population to ensure that, to the extent economically and indigenous sources in regard to the insu- and load centers, nearby energy infrastruc- feasible and technically practicable, of the lar areas.’’; ture, location of energy and water resources, total amount of electric energy the Federal (3) by amending subsection (e) to read as and available estimates of the costs needed Government consumes during any fiscal follows: to develop each resource, together with an year, the following amounts shall be renew- ‘‘(e)(1) The Secretary of the Interior, in identification of any barriers to providing able energy: consultation with the Secretary of Energy adequate transmission for remote sources of (1) Not less than 3 percent in fiscal years and the head of government of each insular renewable energy resources to current and 2007 through 2009. area, shall update the plans required under emerging markets, recommendations for re- (2) Not less than 5 percent in fiscal years subsection (c) by— moving or addressing such barriers, and 2010 through 2012. ‘‘(A) updating the contents required by ways to provide access to the grid that do (3) Not less than 7.5 percent in fiscal year subsection (c); not unfairly disadvantage renewable or other 2013 and each fiscal year thereafter. ‘‘(B) drafting long-term energy plans for energy producers. (b) DEFINITIONS.—In this section: such insular areas with the objective of re- (c) AUTHORIZATION OF APPROPRIATIONS.— (1) BIOMASS.—The term ‘‘biomass’’ means ducing, to the extent feasible, their reliance For the purposes of this section, there are any solid, nonhazardous, cellulosic material on energy imports by the year 2012, increas- authorized to be appropriated to the Sec- that is derived from— ing energy conservation and energy effi- retary of Energy $10,000,000 for each of fiscal (A) any of the following forest-related re- ciency, and maximizing, to the extent fea- years 2006 through 2010. sources: mill residues, precommercial sible, use of indigenous energy sources; and SEC. 202. RENEWABLE ENERGY PRODUCTION IN- thinnings, slash, and brush, or nonmerchant- ‘‘(C) drafting long-term energy trans- CENTIVE. able material; mission line plans for such insular areas (a) INCENTIVE PAYMENTS.—Section 1212(a) (B) solid wood waste materials, including with the objective that the maximum per- of the Energy Policy Act of 1992 (42 U.S.C. waste pallets, crates, dunnage, manufac- centage feasible of electric power trans- 13317(a)) is amended by striking ‘‘and which turing and construction wood wastes (other mission and distribution lines in each insu- satisfies’’ and all that follows through ‘‘Sec- than pressure-treated, chemically-treated, or lar area be protected from damage caused by retary shall establish.’’ and inserting ‘‘. If painted wood wastes), and landscape or hurricanes and typhoons. there are insufficient appropriations to right-of-way tree trimmings, but not includ- ‘‘(2) Not later than December 31, 2006, the make full payments for electric production ing municipal solid waste (garbage), gas de- Secretary of the Interior shall submit to from all qualified renewable energy facilities rived from the biodegradation of solid waste, Congress the updated plans for each insular in any given year, the Secretary shall assign or paper that is commonly recycled; area required by this subsection.’’; and 60 percent of appropriated funds for that (C) agriculture wastes, including orchard (4) by amending subsection (g)(4) to read as year to facilities that use solar, wind, geo- tree crops, vineyard, grain, legumes, sugar, follows: thermal, or closed-loop (dedicated energy and other crop by-products or residues, and ‘‘(4) POWER LINE GRANTS FOR INSULAR crops) biomass technologies to generate elec- livestock waste nutrients; or AREAS.— tricity, and assign the remaining 40 percent (D) a plant that is grown exclusively as a ‘‘(A) IN GENERAL.—The Secretary of the In- to other projects. The Secretary may, after fuel for the production of electricity. terior is authorized to make grants to gov- transmitting to Congress an explanation of (2) RENEWABLE ENERGY.—The term ‘‘renew- ernments of insular areas of the United the reasons therefor, alter the percentage re- able energy’’ means electric energy gen- States to carry out eligible projects to pro- quirements of the preceding sentence.’’. erated from solar, wind, biomass, landfill tect electric power transmission and dis- (b) QUALIFIED RENEWABLE ENERGY FACIL- gas, ocean (tidal, wave, current, and ther- tribution lines in such insular areas from ITY.—Section 1212(b) of the Energy Policy mal), geothermal, municipal solid waste, or damage caused by hurricanes and typhoons. Act of 1992 (42 U.S.C. 13317(b)) is amended— new hydroelectric generation capacity ‘‘(B) ELIGIBLE PROJECTS.—The Secretary (1) by striking ‘‘a State or any political’’ achieved from increased efficiency or addi- may award grants under subparagraph (A) and all that follows through ‘‘nonprofit elec- tions of new capacity at an existing hydro- only to governments of insular areas of the trical cooperative’’ and inserting ‘‘a not-for- electric project. United States that submit written project profit electric cooperative, a public utility (c) CALCULATION.—For purposes of deter- plans to the Secretary for projects that meet described in section 115 of the Internal Rev- mining compliance with the requirement of the following criteria: enue Code of 1986, a State, Commonwealth, this section, the amount of renewable energy ‘‘(i) The project is designed to protect elec- territory, or possession of the United States shall be doubled if— tric power transmission and distribution or the District of Columbia, or a political (1) the renewable energy is produced and lines located in 1 or more of the insular areas subdivision thereof, or an Indian tribal gov- used on-site at a Federal facility; of the United States from damage caused by ernment or subdivision thereof,’’; and (2) the renewable energy is produced on hurricanes and typhoons. (2) by inserting ‘‘landfill gas, livestock Federal lands and used at a Federal facility; ‘‘(ii) The project is likely to substantially methane, ocean (tidal, wave, current, and or reduce the risk of future damage, hardship, thermal),’’ after ‘‘wind, biomass,’’. (3) the renewable energy is produced on In- loss, or suffering. (c) ELIGIBILITY WINDOW.—Section 1212(c) of dian land as defined in title XXVI of the En- ‘‘(iii) The project addresses 1 or more prob- the Energy Policy Act of 1992 (42 U.S.C. ergy Policy Act of 1992 (25 U.S.C. 3501 et seq.) lems that have been repetitive or that pose a 13317(c)) is amended by striking ‘‘during the and used at a Federal facility. significant risk to public health and safety. 10-fiscal year period beginning with the first (d) REPORT.—Not later than April 15, 2007, ‘‘(iv) The project is not likely to cost more full fiscal year occurring after the enact- and every 2 years thereafter, the Secretary than the value of the reduction in direct ment of this section’’ and inserting ‘‘after of Energy shall provide a report to Congress damage and other negative impacts that the October 1, 2005, and before October 1, 2015’’. on the progress of the Federal Government project is designed to prevent or mitigate. (d) AMOUNT OF PAYMENT.—Section in meeting the goals established by this sec- The cost benefit analysis required by this 1212(e)(1) of the Energy Policy Act of 1992 (42 tion. criterion shall be computed on a net present U.S.C. 13317(e)(1)) is amended by inserting SEC. 204. INSULAR AREAS ENERGY SECURITY. value basis. ‘‘landfill gas, livestock methane, ocean Section 604 of the Act entitled ‘‘An Act to ‘‘(v) The project design has taken into con- (tidal, wave, current, and thermal),’’ after authorize appropriations for certain insular sideration long-term changes to the areas ‘‘wind, biomass,’’. areas of the United States, and for other pur- and persons it is designed to protect and has (e) SUNSET.—Section 1212(f) of the Energy poses’’, approved December 24, 1980 (48 U.S.C. manageable future maintenance and modi- Policy Act of 1992 (42 U.S.C. 13317(f)) is 1492), is amended— fication requirements. amended by striking ‘‘the expiration of’’ and (1) in subsection (a)(4) by striking the pe- ‘‘(vi) The project plan includes an analysis all that follows through ‘‘of this section’’ riod and inserting a semicolon; of a range of options to address the problem and inserting ‘‘September 30, 2025’’. (2) by adding at the end of subsection (a) it is designed to prevent or mitigate and a (f) AUTHORIZATION OF APPROPRIATIONS.— the following new paragraphs: justification for the selection of the project Section 1212(g) of the Energy Policy Act of ‘‘(5) electric power transmission and dis- in light of that analysis. 1992 (42 U.S.C. 13317(g)) is amended to read as tribution lines in insular areas are inad- ‘‘(vii) The applicant has demonstrated to follows: equate to withstand damage caused by the the Secretary that the matching funds re- ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— hurricanes and typhoons which frequently quired by subparagraph (D) are available. ‘‘(1) IN GENERAL.—Subject to paragraph (2), occur in insular areas and such damage often ‘‘(C) PRIORITY.—When making grants under there are authorized to be appropriated such costs millions of dollars to repair; and this paragraph, the Secretary shall give pri- sums as may be necessary to carry out this ‘‘(6) the refinement of renewable energy ority to grants for projects which are likely section for fiscal years 2005 through 2025. technologies since the publication of the 1982 to—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00069 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.051 H20PT1 H2222 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(i) have the greatest impact on reducing the Secretary shall establish a photovoltaic lated to hazardous fuels reduction, disease, future disaster losses; and solar energy systems evaluation program to and insect infestation; and ‘‘(ii) best conform with plans that have evaluate such photovoltaic solar energy sys- (B) develop and expand markets for tradi- been approved by the Federal Government or tems as are required in public buildings. tionally underused wood and biomass as an the government of the insular area where the ‘‘(2) PROGRAM REQUIREMENT.—In evaluating outlet for byproducts of preventive treat- project is to be carried out for development photovoltaic solar energy systems under the ment activities. or hazard mitigation for that insular area. program, the Secretary shall ensure that (b) DEFINITIONS.—In this section: ‘‘(D) MATCHING REQUIREMENT.—The Federal such systems reflect the most advanced tech- (1) BIOMASS.—The term ‘‘biomass’’ means share of the cost for a project for which a nology. trees and woody plants, including limbs, grant is provided under this paragraph shall ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— tops, needles, and other woody parts, and by- not exceed 75 percent of the total cost of ‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA- products of preventive treatment, such as that project. The non-Federal share of the TION PROGRAM.—There are authorized to be wood, brush, thinnings, chips, and slash, that cost may be provided in the form of cash or appropriated to carry out subsection (a) are removed— services. $50,000,000 for each of fiscal years 2006 (A) to reduce hazardous fuels; or ‘‘(E) TREATMENT OF FUNDS FOR CERTAIN through 2010. Such sums shall remain avail- (B) to reduce the risk of or to contain dis- PURPOSES.—Grants provided under this para- able until expended. ease or insect infestation. graph shall not be considered as income, a ‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ resource, or a duplicative program when de- PROGRAM.—There are authorized to be appro- has the meaning given the term in section termining eligibility or benefit levels for priated to carry out subsection (b) $10,000,000 4(e) of the Indian Self-Determination and Federal major disaster and emergency as- for each of fiscal years 2006 through 2010. Education Assistance Act (25 U.S.C. 450b(e)). sistance. Such sums shall remain available until ex- (3) PERSON.—The term ‘‘person’’ includes— ‘‘(F) AUTHORIZATION OF APPROPRIATIONS.— pended.’’. (A) an individual; There are authorized to be appropriated to (b) CONFORMING AMENDMENT.—The table of (B) a community (as determined by the carry out this paragraph $5,000,000 for each sections for the National Energy Conserva- Secretary concerned); fiscal year beginning after the date of the en- tion Policy Act is amended by inserting after (C) an Indian tribe; actment of this paragraph.’’. the item relating to section 569 the fol- (D) a small business, micro-business, or a SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN lowing: corporation that is incorporated in the PUBLIC BUILDINGS. ‘‘Sec. 570. Use of photovoltaic energy in pub- United States; and (a) IN GENERAL.—Part 4 of title V of the lic buildings.’’. (E) a nonprofit organization. National Energy Conservation Policy Act (42 (4) PREFERRED COMMUNITY.—The term SEC. 206. GRANTS TO IMPROVE THE COMMER- U.S.C. 8271 et seq.) is amended by adding at CIAL VALUE OF FOREST BIOMASS ‘‘preferred community’’ means— the end the following: FOR ELECTRIC ENERGY, USEFUL (A) any town, township, municipality, or ‘‘SEC. 570. USE OF PHOTOVOLTAIC ENERGY IN HEAT, TRANSPORTATION FUELS, PE- other similar unit of local government (as PUBLIC BUILDINGS. TROLEUM-BASED PRODUCT SUB- determined by the Secretary concerned) ‘‘(a) PHOTOVOLTAIC ENERGY COMMER- STITUTES, AND OTHER COMMER- that— CIALIZATION PROGRAM.— CIAL PURPOSES. (i) has a population of not more than 50,000 ‘‘(1) IN GENERAL.—The Secretary may es- (a) FINDINGS.—Congress finds the fol- individuals; and tablish a photovoltaic energy commer- lowing: (ii) the Secretary concerned, in the sole cialization program for the procurement and (1) Thousands of communities in the discretion of the Secretary concerned, deter- installation of photovoltaic solar electric United States, many located near Federal mines contains or is located near land, the systems for electric production in new and lands, are at risk to wildfire. Approximately condition of which is at significant risk of existing public buildings. 190,000,000 acres of land managed by the Sec- catastrophic wildfire, disease, or insect in- ‘‘(2) PURPOSES.—The purposes of the pro- retary of Agriculture and the Secretary of festation or which suffers from disease or in- gram shall be to accomplish the following: the Interior are at risk of catastrophic fire sect infestation; or ‘‘(A) To accelerate the growth of a com- in the near future. The accumulation of (B) any county that— mercially viable photovoltaic industry to heavy forest fuel loads continues to increase (i) is not contained within a metropolitan make this energy system available to the as a result of disease, insect infestations, and statistical area; and general public as an option which can reduce drought, further raising the risk of fire each (ii) the Secretary concerned, in the sole the national consumption of fossil fuel. year. discretion of the Secretary concerned, deter- ‘‘(B) To reduce the fossil fuel consumption (2) In addition, more than 70,000,000 acres mines contains or is located near land, the and costs of the Federal Government. across all land ownerships are at risk to condition of which is at significant risk of ‘‘(C) To attain the goal of installing solar higher than normal mortality over the next catastrophic wildfire, disease, or insect in- energy systems in 20,000 Federal buildings by 15 years from insect infestation and disease. festation or which suffers from disease or in- 2010, as contained in the Federal Govern- High levels of tree mortality from insects sect infestation. ment’s Million Solar Roof Initiative of 1997. and disease result in increased fire risk, loss (5) SECRETARY CONCERNED.—The term ‘‘Sec- ‘‘(D) To stimulate the general use within of old growth, degraded watershed condi- retary concerned’’ means— the Federal Government of life-cycle costing tions, and changes in species diversity and (A) the Secretary of Agriculture with re- and innovative procurement methods. productivity, as well as diminished fish and spect to National Forest System lands; and ‘‘(E) To develop program performance data wildlife habitat and decreased timber values. (B) the Secretary of the Interior with re- to support policy decisions on future incen- (3) Preventive treatments such as remov- spect to Federal lands under the jurisdiction tive programs with respect to energy. ing fuel loading, ladder fuels, and hazard of the Secretary of the Interior and Indian ‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR trees, planting proper species mix and restor- lands. ELECTRIC SYSTEMS.— ing and protecting early successional habi- (c) BIOMASS COMMERCIAL USE GRANT PRO- ‘‘(A) IN GENERAL.—The program shall pro- tat, and other specific restoration treat- GRAM.— vide for the acquisition of photovoltaic solar ments designed to reduce the susceptibility (1) IN GENERAL.—The Secretary concerned electric systems and associated storage ca- of forest land, woodland, and rangeland to may make grants to any person that owns or pability for use in public buildings. insect outbreaks, disease, and catastrophic operates a facility that uses biomass as a ‘‘(B) ACQUISITION LEVELS.—The acquisition fire present the greatest opportunity for raw material to produce electric energy, sen- of photovoltaic electric systems shall be at a long-term forest health by creating a mosaic sible heat, transportation fuels, or sub- level substantial enough to allow use of low- of species-mix and age distribution. Such stitutes for petroleum-based products to off- cost production techniques with at least 150 prevention treatments are widely acknowl- set the costs incurred to purchase biomass megawatts (peak) cumulative acquired dur- edged to be more successful and cost effec- for use by such facility. ing the 5 years of the program. tive than suppression treatments in the case (2) GRANT AMOUNTS.—A grant under this ‘‘(4) ADMINISTRATION.—The Secretary shall of insects, disease, and fire. subsection may not exceed $20 per green ton administer the program and shall— (4) The byproducts of preventive treatment of biomass delivered. ‘‘(A) issue such rules and regulations as (wood, brush, thinnings, chips, slash, and (3) MONITORING OF GRANT RECIPIENT ACTIVI- may be appropriate to monitor and assess other hazardous fuels) removed from forest TIES.—As a condition of a grant under this the performance and operation of photo- lands, woodlands and rangelands represent subsection, the grant recipient shall keep voltaic solar electric systems installed pur- an abundant supply of biomass for biomass- such records as the Secretary concerned may suant to this subsection; to-energy facilities and raw material for require to fully and correctly disclose the ‘‘(B) develop innovative procurement strat- business. There are currently few markets use of the grant funds and all transactions egies for the acquisition of such systems; and for the extraordinary volumes of byproducts involved in the purchase of biomass. Upon ‘‘(C) transmit to Congress an annual report being generated as a result of the necessary notice by a representative of the Secretary on the results of the program. large-scale preventive treatment activities. concerned, the grant recipient shall afford ‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION (5) The United States should— the representative reasonable access to the PROGRAM.— (A) promote economic and entrepreneurial facility that purchases or uses biomass and ‘‘(1) IN GENERAL.—Not later than 60 days opportunities in using byproducts removed an opportunity to examine the inventory and after the date of enactment of this section, through preventive treatment activities re- records of the facility.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00070 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.051 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2223

(d) IMPROVED BIOMASS USE GRANT PRO- after the filing of the request, together with bates for consumers for expenditures made GRAM.— any information required to be filed with for the installation of a renewable energy (1) IN GENERAL.—The Secretary concerned such request under subparagraph (A)(ii). system in connection with a dwelling unit or may make grants to persons to offset the ‘‘(C) Each month the Secretary shall pub- small business. cost of projects to develop or research oppor- lish a report of any request under subpara- (2) AMOUNT OF REBATE.—Rebates provided tunities to improve the use of, or add value graph (A)(ii) which has been denied during under the program established under para- to, biomass. In making such grants, the Sec- the preceding month and the reasons for the graph (1) shall be in an amount not to exceed retary concerned shall give preference to denial. the lesser of— persons in preferred communities. ‘‘(D) The Secretary shall not specify any (A) 25 percent of the expenditures described (2) SELECTION.—The Secretary concerned form of renewable energy under paragraph in paragraph (1) made by the consumer; or shall select a grant recipient under para- (6)(A)(i)(I) unless the Secretary determines (B) $3,000. graph (1) after giving consideration to the that— (3) DEFINITION.—For purposes of this sub- anticipated public benefits of the project, in- ‘‘(i) there will be a reduction in oil or nat- section, the term ‘‘renewable energy sys- cluding the potential to develop thermal or ural gas consumption as a result of such tem’’ has the meaning given that term in electric energy resources or affordable en- specification; section 415(c)(6)(A) of the Energy Conserva- ergy, opportunities for the creation or ex- ‘‘(ii) such specification will not result in an tion and Production Act (42 U.S.C. pansion of small businesses and micro-busi- increased use of any item which is known to 6865(c)(6)(A)), as added by subsection (a)(3) of nesses, and the potential for new job cre- be, or reasonably suspected to be, environ- this section. ation. mentally hazardous or a threat to public (4) AUTHORIZATION OF APPROPRIATIONS.— (3) GRANT AMOUNT.—A grant under this health or safety; and There are authorized to be appropriated to subsection may not exceed $500,000. ‘‘(iii) available Federal subsidies do not the Secretary of Energy for carrying out this (e) AUTHORIZATION OF APPROPRIATIONS.— make such specification unnecessary or in- subsection, to remain available until ex- There are authorized to be appropriated appropriate (in the light of the most advan- pended— $50,000,000 for each of the fiscal years 2006 tageous allocation of economic resources). (A) $150,000,000 for fiscal year 2006; through 2016 to carry out this section. ‘‘(6) In this subsection— (B) $150,000,000 for fiscal year 2007; ‘‘(A) the term ‘renewable energy system’ (f) REPORT.—Not later than October 1, 2012, (C) $200,000,000 for fiscal year 2008; the Secretary of Agriculture, in consultation means a system which— (D) $250,000,000 for fiscal year 2009; and with the Secretary of the Interior, shall sub- ‘‘(i) when installed in connection with a (E) $250,000,000 for fiscal year 2010. mit to the Committee on Energy and Nat- dwelling, transmits or uses— (e) RENEWABLE FUEL INVENTORY.—Not later ural Resources and the Committee on Agri- ‘‘(I) solar energy, energy derived from the than 180 days after the date of enactment of culture, Nutrition, and Forestry of the Sen- geothermal deposits, energy derived from this Act, the Secretary of Energy shall ate and the Committee on Resources, the biomass, or any other form of renewable en- transmit to Congress a report containing— Committee on Energy and Commerce, and ergy which the Secretary specifies by regula- (1) an inventory of renewable fuels avail- the Committee on Agriculture of the House tions, for the purpose of heating or cooling able for consumers; and of Representatives a report describing the re- such dwelling or providing hot water or elec- (2) a projection of future inventories of re- sults of the grant programs authorized by tricity for use within such dwelling; or newable fuels based on the incentives pro- this section. The report shall include the fol- ‘‘(II) wind energy for nonbusiness residen- vided in this section lowing: tial purposes; ‘‘(ii) meets the performance and quality Subtitle C—Hydroelectric (1) An identification of the size, type, and PART I—ALTERNATIVE CONDITIONS the use of biomass by persons that receive standards (if any) which have been pre- grants under this section. scribed by the Secretary by regulations; SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS. (2) The distance between the land from ‘‘(iii) in the case of a combustion rated sys- (a) FEDERAL RESERVATIONS.—Section 4(e) which the biomass was removed and the fa- tem, has a thermal efficiency rating of at of the Federal Power Act (16 U.S.C. 797(e)) is cility that used the biomass. least 75 percent; and amended by inserting after ‘‘adequate pro- (3) The economic impacts, particularly new ‘‘(iv) in the case of a solar system, has a tection and utilization of such reservation.’’ job creation, resulting from the grants to thermal efficiency rating of at least 15 per- at the end of the first proviso the following: and operation of the eligible operations. cent; and ‘‘(B) the term ‘biomass’ means any organic ‘‘The license applicant shall be entitled to a SEC. 207. BIOBASED PRODUCTS. matter that is available on a renewable or determination on the record, after oppor- Section 9002(c)(1) of the Farm Security and recurring basis, including agricultural crops tunity for an expedited agency trial-type Rural Investment Act of 2002 (7 U.S.C. and trees, wood and wood wastes and resi- hearing of any disputed issues of material 8102(c)(1)) is amended by inserting ‘‘or such dues, plants (including aquatic plants), fact, with respect to such conditions. Such items that comply with the regulations grasses, residues, fibers, and animal wastes, hearing may be conducted in accordance issued under section 103 of Public Law 100– municipal wastes, and other waste mate- with procedures established by agency regu- 556 (42 U.S.C. 6914b–1)’’ after ‘‘practicable’’. rials.’’. lation in consultation with the Federal En- SEC. 208. RENEWABLE ENERGY SECURITY. (b) DISTRICT HEATING AND COOLING PRO- ergy Regulatory Commission.’’. (a) WEATHERIZATION ASSISTANCE.—Section GRAMS.—Section 172 of the Energy Policy (b) FISHWAYS.—Section 18 of the Federal 415(c) of the Energy Conservation and Pro- Act of 1992 (42 U.S.C. 13451 note) is amended— Power Act (16 U.S.C. 811) is amended by in- duction Act (42 U.S.C. 6865(c)) is amended— (1) in subsection (a)— serting after ‘‘and such fishways as may be (1) in paragraph (1), by striking ‘‘in para- (A) by striking ‘‘and’’ at the end of para- prescribed by the Secretary of Commerce.’’ graph (3)’’ and inserting ‘‘in paragraphs (3) graph (3); the following: ‘‘The license applicant shall and (4)’’; (B) by striking the period at the end of be entitled to a determination on the record, (2) in paragraph (3), by striking ‘‘$2,500 per paragraph (4) and inserting ‘‘; and’’; and after opportunity for an expedited agency dwelling unit average provided in paragraph (C) by adding at the end the following new trial-type hearing of any disputed issues of (1)’’ and inserting ‘‘dwelling unit averages paragraph: material fact, with respect to such fishways. provided in paragraphs (1) and (4)’’; and ‘‘(5) evaluate the use of renewable energy Such hearing may be conducted in accord- (3) by adding at the end the following new systems (as such term is defined in section ance with procedures established by agency paragraphs: 415(c) of the Energy Conservation and Pro- regulation in consultation with the Federal ‘‘(4) The expenditure of financial assist- duction Act (42 U.S.C. 6865(c))) in residential Energy Regulatory Commission.’’. ance provided under this part for labor, buildings.’’; and (c) ALTERNATIVE CONDITIONS AND PRESCRIP- weatherization materials, and related mat- (2) in subsection (b), by striking ‘‘this Act’’ TIONS.—Part I of the Federal Power Act (16 ters for a renewable energy system shall not and inserting ‘‘the Energy Policy Act of U.S.C. 791a et seq.) is amended by adding the exceed an average of $3,000 per dwelling unit. 2005’’. following new section at the end thereof: ‘‘(5)(A) The Secretary shall by regula- (c) DEFINITION OF BIOMASS.—Section 203(2) ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRE- tions— of the Biomass Energy and Alcohol Fuels SCRIPTIONS. ‘‘(i) establish the criteria which are to be Act of 1980 (42 U.S.C. 8802(2)) is amended to ‘‘(a) ALTERNATIVE CONDITIONS.—(1) When- used in prescribing performance and quality read as follows: ever any person applies for a license for any standards under paragraph (6)(A)(ii) or in ‘‘(2) The term ‘biomass’ means any organic project works within any reservation of the specifying any form of renewable energy matter that is available on a renewable or United States, and the Secretary of the de- under paragraph (6)(A)(i)(I); and recurring basis, including agricultural crops partment under whose supervision such res- ‘‘(ii) establish a procedure under which a and trees, wood and wood wastes and resi- ervation falls (referred to in this subsection manufacturer of an item may request the dues, plants (including aquatic plants), as ‘the Secretary’) deems a condition to such Secretary to certify that the item will be grasses, residues, fibers, and animal wastes, license to be necessary under the first pro- treated, for purposes of this paragraph, as a municipal wastes, and other waste mate- viso of section 4(e), the license applicant renewable energy system. rials.’’. may propose an alternative condition. ‘‘(B) The Secretary shall make a final de- (d) REBATE PROGRAM.— ‘‘(2) Notwithstanding the first proviso of termination with respect to any request filed (1) ESTABLISHMENT.—The Secretary of En- section 4(e), the Secretary shall accept the under subparagraph (A)(ii) within 1 year ergy shall establish a program providing re- proposed alternative condition referred to in

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00071 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.051 H20PT1 H2224 CONGRESSIONAL RECORD — HOUSE April 20, 2005 paragraph (1), and the Commission shall in- proceeding with any prescription under sec- 30(a)(2) of the Federal Power Act (16 U.S.C. clude in the license such alternative condi- tion 18 or alternative prescription it accepts 823a(a)(2)). tion, if the Secretary determines, based on under this section, a written statement ex- The terms defined in this subsection shall substantial evidence provided by the license plaining the basis for such prescription, and apply without regard to the hydroelectric applicant or otherwise available to the Sec- reason for not accepting any alternative pre- kilowatt capacity of the facility concerned, retary, that such alternative condition— scription under this section. The written without regard to whether the facility uses a ‘‘(A) provides for the adequate protection statement must demonstrate that the Sec- dam owned by a governmental or nongovern- and utilization of the reservation; and retary gave equal consideration to the ef- mental entity, and without regard to wheth- ‘‘(B) will either— fects of the condition adopted and alter- er the facility begins operation on or after ‘‘(i) cost less to implement; or natives not accepted on energy supply, dis- the date of the enactment of this section. ‘‘(ii) result in improved operation of the tribution, cost, and use; flood control; navi- (c) ELIGIBILITY WINDOW.—Payments may be project works for electricity production, gation; water supply; and air quality (in ad- made under this section only for electric en- as compared to the condition initially dition to the preservation of other aspects of ergy generated from a qualified hydro- electric facility which begins operation dur- deemed necessary by the Secretary. environmental quality); based on such infor- ing the period of 10 fiscal years beginning ‘‘(3) The Secretary shall submit into the mation as may be available to the Secretary, with the first full fiscal year occurring after public record of the Commission proceeding including information voluntarily provided the date of enactment of this subtitle. with any condition under section 4(e) or al- in a timely manner by the applicant and oth- ternative condition it accepts under this sec- (d) INCENTIVE PERIOD.—A qualified hydro- ers. The Secretary shall also submit, to- electric facility may receive payments under tion, a written statement explaining the gether with the aforementioned written basis for such condition, and reason for not this section for a period of 10 fiscal years (re- statement, all studies, data, and other fac- ferred to in this section as the ‘‘incentive pe- accepting any alternative condition under tual information available to the Secretary this section. The written statement must riod’’). Such period shall begin with the fis- and relevant to the Secretary’s decision. cal year in which electric energy generated demonstrate that the Secretary gave equal ‘‘(4) Nothing in this section shall prohibit from the facility is first eligible for such consideration to the effects of the condition other interested parties from proposing al- payments. adopted and alternatives not accepted on en- ternative prescriptions. (e) AMOUNT OF PAYMENT.— ergy supply, distribution, cost, and use; flood ‘‘(5) If the Secretary concerned does not ac- (1) IN GENERAL.—Payments made by the control; navigation; water supply; and air cept an applicant’s alternative prescription Secretary under this section to the owner or quality (in addition to the preservation of under this section, and the Commission finds operator of a qualified hydroelectric facility other aspects of environmental quality); that the Secretary’s prescription would be shall be based on the number of kilowatt based on such information as may be avail- inconsistent with the purposes of this part, hours of hydroelectric energy generated by able to the Secretary, including information or other applicable law, the Commission may the facility during the incentive period. For voluntarily provided in a timely manner by refer the dispute to the Commission’s Dis- any such facility, the amount of such pay- the applicant and others. The Secretary pute Resolution Service. The Dispute Reso- ment shall be 1.8 cents per kilowatt hour (ad- shall also submit, together with the afore- lution Service shall consult with the Sec- justed as provided in paragraph (2)), subject mentioned written statement, all studies, retary and the Commission and issue a non- to the availability of appropriations under data, and other factual information avail- binding advisory within 90 days. The Sec- subsection (g), except that no facility may able to the Secretary and relevant to the retary may accept the Dispute Resolution receive more than $750,000 in 1 calendar year. Secretary’s decision. Service advisory unless the Secretary finds (2) ADJUSTMENTS.—The amount of the pay- ‘‘(4) Nothing in this section shall prohibit that the recommendation will be less protec- ment made to any person under this section other interested parties from proposing al- tive than the fishway initially prescribed by as provided in paragraph (1) shall be adjusted ternative conditions. the Secretary. The Secretary shall submit for inflation for each fiscal year beginning ‘‘(5) If the Secretary does not accept an ap- the advisory and the Secretary’s final writ- plicant’s alternative condition under this after calendar year 2005 in the same manner ten determination into the record of the as provided in the provisions of section section, and the Commission finds that the Commission’s proceeding.’’. Secretary’s condition would be inconsistent 29(d)(2)(B) of the Internal Revenue Code of with the purposes of this part, or other appli- PART II—ADDITIONAL HYDROPOWER 1986, except that in applying such provisions cable law, the Commission may refer the dis- SEC. 241. HYDROELECTRIC PRODUCTION INCEN- the calendar year 2005 shall be substituted pute to the Commission’s Dispute Resolution TIVES. for calendar year 1979. (f) SUNSET.—No payment may be made Service. The Dispute Resolution Service (a) INCENTIVE PAYMENTS.—For electric en- under this section to any qualified hydro- shall consult with the Secretary and the ergy generated and sold by a qualified hydro- electric facility after the expiration of the Commission and issue a non-binding advi- electric facility during the incentive period, period of 20 fiscal years beginning with the sory within 90 days. The Secretary may ac- the Secretary of Energy (referred to in this first full fiscal year occurring after the date cept the Dispute Resolution Service advisory section as the ‘‘Secretary’’) shall make, sub- of enactment of this subtitle, and no pay- unless the Secretary finds that the rec- ject to the availability of appropriations, in- ment may be made under this section to any ommendation will not provide for the ade- centive payments to the owner or operator of such facility. The amount of such payment such facility after a payment has been made quate protection and utilization of the res- with respect to such facility for a period of ervation. The Secretary shall submit the ad- made to any such owner or operator shall be as determined under subsection (e) of this 10 fiscal years. visory and the Secretary’s final written de- (g) AUTHORIZATION OF APPROPRIATIONS.— termination into the record of the Commis- section. Payments under this section may only be made upon receipt by the Secretary There are authorized to be appropriated to sion’s proceeding. the Secretary to carry out the purposes of of an incentive payment application which ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) this section $10,000,000 for each of the fiscal establishes that the applicant is eligible to Whenever the Secretary of the Interior or years 2006 through 2015. the Secretary of Commerce prescribes a receive such payment and which satisfies such other requirements as the Secretary SEC. 242. HYDROELECTRIC EFFICIENCY IM- fishway under section 18, the license appli- PROVEMENT. deems necessary. Such application shall be cant or licensee may propose an alternative (a) INCENTIVE PAYMENTS.—The Secretary of in such form, and shall be submitted at such to such prescription to construct, maintain, Energy shall make incentive payments to or operate a fishway. time, as the Secretary shall establish. the owners or operators of hydroelectric fa- (b) DEFINITIONS.—For purposes of this sec- ‘‘(2) Notwithstanding section 18, the Sec- cilities at existing dams to be used to make tion: retary of the Interior or the Secretary of capital improvements in the facilities that (1) QUALIFIED HYDROELECTRIC FACILITY.— Commerce, as appropriate, shall accept and are directly related to improving the effi- prescribe, and the Commission shall require, The term ‘‘qualified hydroelectric facility’’ ciency of such facilities by at least 3 percent. the proposed alternative referred to in para- means a turbine or other generating device (b) LIMITATIONS.—Incentive payments graph (1), if the Secretary of the appropriate owned or solely operated by a non-Federal under this section shall not exceed 10 percent department determines, based on substantial entity which generates hydroelectric energy of the costs of the capital improvement con- evidence provided by the licensee or other- for sale and which is added to an existing cerned and not more than 1 payment may be wise available to the Secretary, that such al- dam or conduit. made with respect to improvements at a sin- ternative— (2) EXISTING DAM OR CONDUIT.—The term gle facility. No payment in excess of $750,000 ‘‘(A) will be no less protective than the ‘‘existing dam or conduit’’ means any dam or may be made with respect to improvements fishway initially prescribed by the Sec- conduit the construction of which was com- at a single facility. retary; and pleted before the date of the enactment of (c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(B) will either— this section and which does not require any There are authorized to be appropriated to ‘‘(i) cost less to implement; or construction or enlargement of impound- carry out this section not more than ‘‘(ii) result in improved operation of the ment or diversion structures (other than re- $10,000,000 for each of the fiscal years 2006 project works for electricity production, pair or reconstruction) in connection with through 2015. as compared to the fishway initially deemed the installation of a turbine or other gener- SEC. 243. SMALL HYDROELECTRIC POWER necessary by the Secretary. ating device. PROJECTS. ‘‘(3) The Secretary concerned shall submit (3) CONDUIT.—The term ‘‘conduit’’ has the Section 408(a)(6) of the Public Utility Reg- into the public record of the Commission same meaning as when used in section ulatory Policies Act of 1978 (16 U.S.C.

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2708(a)(6)) is amended by striking ‘‘April 20, (c) EXISTING OBLIGATIONS NOT AFFECTED.— SEC. 303. SITE SELECTION. 1977’’ and inserting ‘‘March 4, 2003’’. This section shall not be construed to affect Not later than 1 year after the date of en- SEC. 244. INCREASED HYDROELECTRIC GENERA- any existing obligation of the Secretary to actment of this Act, the Secretary of Energy TION AT EXISTING FEDERAL FACILI- provide electric power, water, or other bene- shall complete a proceeding to select, from TIES. fits from Bureau of Reclamation facilities, sites that the Secretary has previously stud- (a) IN GENERAL.—The Secretary of the In- including recreational releases. ied, sites necessary to enable acquisition by terior and the Secretary of Energy, in con- TITLE III—OIL AND GAS—COMMERCE the Secretary of the full authorized volume sultation with the Secretary of the Army, Subtitle A—Petroleum Reserve and Home of the Strategic Petroleum Reserve. shall jointly conduct a study of the potential Heating Oil SEC. 304. SUSPENSION OF STRATEGIC PETRO- for increasing electric power production ca- LEUM RESERVE DELIVERIES. SEC. 301. PERMANENT AUTHORITY TO OPERATE pability at federally owned or operated water The Secretary of Energy shall suspend de- regulation, storage, and conveyance facili- THE STRATEGIC PETROLEUM RE- SERVE AND OTHER ENERGY PRO- liveries of royalty-in-kind oil to the Stra- ties. GRAMS. tegic Petroleum Reserve until the price of (b) CONTENT.—The study under this section (a) AMENDMENT TO TITLE I OF THE ENERGY shall include identification and description oil falls below $40 per barrel for 2 consecutive POLICY AND CONSERVATION ACT.—Title I of in detail of each facility that is capable, with weeks on the New York Mercantile Ex- the Energy Policy and Conservation Act (42 or without modification, of producing addi- change. U.S.C. 6211 et seq.) is amended— tional hydroelectric power, including esti- Subtitle B—Production Incentives (1) by striking section 166 (42 U.S.C. 6246) mation of the existing potential for the facil- and inserting the following: SEC. 320. LIQUEFACTION OR GASIFICATION NAT- ity to generate hydroelectric power. URAL GAS TERMINALS. ‘‘AUTHORIZATION OF APPROPRIATIONS (c) REPORT.—The Secretaries shall submit (a) SCOPE OF NATURAL GAS ACT.—Section to the Committees on Energy and Com- ‘‘SEC. 166. There are authorized to be ap- 1(b) of the Natural Gas Act (15 U.S.C. 717(b)) merce, Resources, and Transportation and propriated to the Secretary such sums as is amended by inserting ‘‘and to the importa- Infrastructure of the House of Representa- may be necessary to carry out this part and tion or exportation of natural gas in foreign tives and the Committee on Energy and Nat- part D, to remain available until expended.’’; commerce and to persons engaged in such ural Resources of the Senate a report on the (2) by striking section 186 (42 U.S.C. 6250e); importation or exportation,’’ after ‘‘such findings, conclusions, and recommendations and transportation or sale,’’. of the study under this section by not later (3) by striking part E (42 U.S.C. 6251; relat- (b) DEFINITION.—Section 2 of the Natural than 18 months after the date of the enact- ing to the expiration of title I of the Act). Gas Act (15 U.S.C. 717a) is amended by add- ment of this Act. The report shall include (b) AMENDMENT TO TITLE II OF THE ENERGY ing at the end the following new paragraph: each of the following: POLICY AND CONSERVATION ACT.—Title II of ‘‘(11) ‘Liquefaction or gasification natural the Energy Policy and Conservation Act (42 (1) The identifications, descriptions, and gas terminal’ includes all facilities located U.S.C. 6271 et seq.) is amended— estimations referred to in subsection (b). onshore or in State waters that are used to (1) by inserting before section 273 (42 U.S.C. (2) A description of activities currently receive, unload, load, store, transport, gas- 6283) the following: conducted or considered, or that could be ify, liquefy, or process natural gas that is considered, to produce additional hydro- ‘‘PART C—SUMMER FILL AND FUEL imported to the United States from a foreign electric power from each identified facility. BUDGETING PROGRAMS’’; country, exported to a foreign country from (3) A summary of prior actions taken by (2) by striking section 273(e) (42 U.S.C. the United States, or transported in inter- the Secretaries to produce additional hydro- 6283(e); relating to the expiration of summer state commerce by waterborne tanker, but electric power from each identified facility. fill and fuel budgeting programs); and does not include— (4) The costs to install, upgrade, or modify (3) by striking part D (42 U.S.C. 6285; relat- ‘‘(A) waterborne tankers used to deliver equipment or take other actions to produce ing to the expiration of title II of the Act). natural gas to or from any such facility; or additional hydroelectric power from each (c) TECHNICAL AMENDMENTS.—The table of ‘‘(B) any pipeline or storage facility sub- identified facility and the level of Federal contents for the Energy Policy and Con- ject to the jurisdiction of the Commission power customer involvement in the deter- servation Act is amended— mination of such costs. under section 7.’’. (1) by inserting after the items relating to (c) AUTHORIZATION FOR CONSTRUCTION, EX- (5) The benefits that would be achieved by part C of title I the following: PANSION, OR OPERATION OF LIQUEFACTION OR such installation, upgrade, modification, or ‘‘PART D—NORTHEAST HOME HEATING OIL other action, including quantified estimates GASIFICATION NATURAL GAS TERMINALS.—(1) RESERVE of any additional energy or capacity from The title for section 3 of the Natural Gas Act each facility identified under subsection (b). ‘‘Sec. 181. Establishment. (15 U.S.C. 717b) is amended by inserting ‘‘; (6) A description of actions that are ‘‘Sec. 182. Authority. LIQUEFACTION OR GASIFICATION NATURAL GAS ‘‘Sec. 183. Conditions for release; plan. planned, underway, or might reasonably be TERMINALS’’ after ‘‘EXPORTATION OR IMPORTA- ‘‘Sec. 184. Northeast Home Heating Oil Re- considered to increase hydroelectric power TION OF NATURAL GAS’’. serve Account. (2) Section 3 of the Natural Gas Act (15 production by replacing turbine runners, by ‘‘Sec. 185. Exemptions.’’; performing generator upgrades or rewinds, or U.S.C. 717b) is amended by adding at the end construction of pumped storage facilities. (2) by amending the items relating to part the following: (7) The impact of increased hydroelectric C of title II to read as follows: ‘‘(d) AUTHORIZATION FOR CONSTRUCTION, EX- PANSION, OR OPERATION OF LIQUEFACTION OR power production on irrigation, fish, wildlife, ‘‘PART C—SUMMER FILL AND FUEL BUDGETING GASIFICATION NATURAL GAS TERMINALS.— Indian tribes, river health, water quality, PROGRAMS ‘‘(1) COMMISSION AUTHORIZATION RE- navigation, recreation, fishing, and flood ‘‘Sec. 273. Summer fill and fuel budgeting control. QUIRED.—No person shall construct, expand, programs.’’ or operate a liquefaction or gasification nat- (8) Any additional recommendations to in- ; and crease hydroelectric power production from, ural gas terminal without an order from the (3) by striking the items relating to part D Commission authorizing such person to do and reduce costs and improve efficiency at, of title II. federally owned or operated water regula- so. (d) AMENDMENT TO THE ENERGY POLICY AND ‘‘(2) AUTHORIZATION PROCEDURES.— tion, storage, and conveyance facilities. CONSERVATION ACT.—Section 183(b)(1) of the ‘‘(A) NOTICE AND HEARING.—Upon the filing SEC. 245. SHIFT OF PROJECT LOADS TO OFF- Energy Policy and Conservation Act (42 PEAK PERIODS. of any application to construct, expand, or U.S.C. 6250(b)(1)) is amended by striking all operate a liquefaction or gasification natural (a) IN GENERAL.—The Secretary of the In- after ‘‘increases’’ through to ‘‘mid-October gas terminal, the Commission shall— terior shall— through March’’ and inserting ‘‘by more than ‘‘(i) set the matter for hearing; (1) review electric power consumption by 60 percent over its 5-year rolling average for ‘‘(ii) give reasonable notice of the hearing Bureau of Reclamation facilities for water the months of mid-October through March to all interested persons, including the State pumping purposes; and (considered as a heating season average)’’. (2) make such adjustments in such pump- (e) FILL STRATEGIC PETROLEUM RESERVE TO commission of the State in which the lique- ing as possible to minimize the amount of CAPACITY.—The Secretary of Energy shall, as faction or gasification natural gas terminal electric power consumed for such pumping expeditiously as practicable, acquire petro- is located; during periods of peak electric power con- leum in amounts sufficient to fill the Stra- ‘‘(iii) decide the matter in accordance with sumption, including by performing as much tegic Petroleum Reserve to the 1,000,000,000 this subsection; and of such pumping as possible during off-peak barrel capacity authorized under section ‘‘(iv) issue or deny the appropriate order hours at night. 154(a) of the Energy Policy and Conservation accordingly. (b) CONSENT OF AFFECTED IRRIGATION CUS- Act (42 U.S.C. 6234(a)), consistent with the ‘‘(B) DESIGNATION AS LEAD AGENCY.— TOMERS REQUIRED.—The Secretary may not provisions of sections 159 and 160 of such Act ‘‘(i) IN GENERAL.—The Commission shall under this section make any adjustment in (42 U.S.C. 6239, 6240). act as the lead agency for the purposes of co- pumping at a facility without the consent of SEC. 302. NATIONAL OILHEAT RESEARCH ALLI- ordinating all applicable Federal authoriza- each person that has contracted with the ANCE. tions and for the purposes of complying with United States for delivery of water from the Section 713 of the Energy Act of 2000 (42 the National Environmental Policy Act of facility for use for irrigation and that would U.S.C. 6201 note) is amended by striking ‘‘4’’ 1969 (42 U.S.C. 4312 et seq.) for a liquefaction be affected by such adjustment. and inserting ‘‘9’’. or gasification natural gas terminal.

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‘‘(ii) OTHER AGENCIES.—Each Federal agen- ‘‘(II) the existing and projected population cuit shall have original and exclusive juris- cy considering an aspect of the construction, and demographic characteristics of the loca- diction over any civil action— expansion, or operation of a liquefaction or tion; ‘‘(A) for review of any order, action, or fail- gasification natural gas terminal shall co- ‘‘(III) the existing and proposed land use ure to act of any Federal or State adminis- operate with the Commission and comply near the location; trative agency to issue, condition, or deny with the deadlines established by the Com- ‘‘(IV) the natural and physical aspects of any permit, license, concurrence, or approval mission. the location; required under Federal law for the construc- ‘‘(C) SCHEDULE.— ‘‘(V) the medical, law enforcement, and tion, expansion, or operation of a lique- ‘‘(i) COMMISSION AUTHORITY TO SET SCHED- fire prevention capabilities near the location faction or gasification natural gas terminal; ULE.—The Commission shall establish a that can respond at the facility; and ‘‘(B) alleging unreasonable delay, in meet- schedule for all Federal and State adminis- ‘‘(VI) the feasibility of remote siting. ing a schedule established under section trative proceedings required under authority ‘‘(F) LIMITATION.—Subparagraph (C)(ii) 3(d)(2)(C) or otherwise, by any Federal or of Federal law to construct, expand, or oper- shall not apply to any approval required to State administrative agency in entering an ate a liquefaction or gasification natural gas protect navigation, maritime safety, or mar- order or taking other action described in terminal. In establishing the schedule, the itime security. subparagraph (A); or Commission shall— ‘‘(3) ISSUANCE OF COMMISSION ORDER.— ‘‘(C) challenging any decision made or ac- ‘‘(I) ensure expeditious completion of all ‘‘(A) IN GENERAL.—The Commission shall tion taken by the Commission under section such proceedings; and issue an order authorizing, in whole or in 3(d). ‘‘(II) accommodate the applicable sched- part, the construction, expansion, or oper- ‘‘(2) COMMISSION ACTION.—For any action ules established by Federal law for such pro- ation covered by the application to any described in this subsection, the Commission ceedings. qualified applicant— shall file with the Court the consolidated ‘‘(ii) FAILURE TO MEET SCHEDULE.—If a Fed- ‘‘(i) unless the Commission finds such ac- record maintained under section 3(d)(2)(D). eral or State administrative agency does not tions or operations will not be consistent ‘‘(3) COURT ACTION.—If the Court finds complete a proceeding for an approval that is with the public interest; and under paragraph (1)(A) or (B) that an order, required before a person may construct, ex- ‘‘(ii) if the Commission has found that the action, failure to act, or delay is incon- pand, or operate the liquefaction or gasifi- applicant is— sistent with applicable Federal law, and cation natural gas terminal, in accordance ‘‘(I) able and willing to carry out the ac- would prevent the construction, expansion, with the schedule established by the Com- tions and operations proposed; and or operation of a liquefaction or gasification mission under this subparagraph, and if— ‘‘(II) willing to conform to the provisions natural gas terminal, the order or action ‘‘(I) a determination has been made by the of this Act and any requirements, rules, and shall be deemed to have been issued or Court pursuant to section 19(d) that such regulations of the Commission set forth taken, subject to any conditions established delay is unreasonable; and under this Act. by the Federal or State administrative agen- ‘‘(II) the agency has failed to act on any re- ‘‘(B) TERMS AND CONDITIONS.—The Commis- cy upon remand from the Court, such condi- mand by the Court within the deadline set sion may by its order grant an application, tions to be consistent with the order of the by the Court, in whole or in part, with such modification Court. If the Court remands the order or ac- that approval may be conclusively presumed and upon such terms and conditions as the tion to the Federal or State agency, the by the Commission. Commission may find necessary or appro- Court shall set a reasonable deadline for the ‘‘(D) EXCLUSIVE RECORD.—The Commission priate. agency to act on remand. shall, with the cooperation of Federal and ‘‘(C) LIMITATIONS ON TERMS AND CONDITIONS ‘‘(4) UNREASONABLE DELAY.—For the pur- State administrative agencies and officials, TO COMMISSION ORDER.— poses of paragraph (1)(B), the failure of an maintain a complete consolidated record of ‘‘(i) IN GENERAL.—Any Commission order agency to issue a permit, license, concur- all decisions made or actions taken by the issued pursuant to this subsection before rence, or approval within the later of— Commission or by a Federal administrative January 1, 2011, shall not be conditioned on— ‘‘(A) 1 year after the date of filing of an ap- agency or officer (or State administrative ‘‘(I) a requirement that the liquefaction or plication for the permit, license, concur- agency or officer acting under delegated Fed- gasification natural gas terminal offer serv- rence, or approval; or eral authority) with respect to the construc- ice to persons other than the person, or any ‘‘(B) 60 days after the date of issuance of tion, expansion, or operation of a lique- affiliate thereof, securing the order; or the order under section 3(d), faction or gasification natural gas terminal. ‘‘(II) any regulation of the liquefaction or shall be considered unreasonable delay un- Such record shall be the exclusive record for gasification natural gas terminal’s rates, less the Court, for good cause shown, deter- any Federal administrative proceeding that charges, terms, or conditions of service. mines otherwise. is an appeal or review of any such decision ‘‘(ii) INAPPLICABLE TO TERMINAL EXIT PIPE- ‘‘(5) EXPEDITED REVIEW.—The Court shall made or action taken. LINE.—Clause (i) shall not apply to any pipe- set any action brought under this subsection ‘‘(E) STATE AND LOCAL SAFETY CONSIDER- line subject to the jurisdiction of the Com- for expedited consideration.’’. mission under section 7 exiting a lique- ATIONS.— SEC. 327. HYDRAULIC FRACTURING. ‘‘(i) IN GENERAL.—The Commission shall faction or gasification natural gas terminal. consult with the State commission of the ‘‘(iii) EXPANSION OF REGULATED TER- Paragraph (1) of section 1421(d) of the Safe State in which the liquefaction or gasifi- MINAL.—An order issued under this para- Drinking Water Act (42 U.S.C. 300h(d)) is cation natural gas terminal is located re- graph that relates to an expansion of an ex- amended to read as follows: garding State and local safety considerations isting liquefaction or gasification natural ‘‘(1) UNDERGROUND INJECTION.—The term prior to issuing an order pursuant to this gas terminal, where any portion of the exist- ‘underground injection’— subsection and consistent with the schedule ing terminal continues to be subject to Com- ‘‘(A) means the subsurface emplacement of established under subparagraph (C). mission regulation of rates, charges, terms, fluids by well injection; and ‘‘(ii) STATE SAFETY INSPECTIONS.—The or conditions of service, may not result in— ‘‘(B) excludes— State commission of the State in which a ‘‘(I) subsidization of the expansion by regu- ‘‘(i) the underground injection of natural liquefaction or gasification natural gas ter- lated terminal users; gas for purposes of storage; and minal is located may, after the terminal is ‘‘(II) degradation of service to the regu- ‘‘(ii) the underground injection of fluids or operational, conduct safety inspections with lated terminal users; or propping agents pursuant to hydraulic frac- respect to the liquefaction or gasification ‘‘(III) undue discrimination against the turing operations related to oil or gas pro- natural gas terminal if— regulated terminal users. duction activities.’’. ‘‘(I) the State commission provides written ‘‘(iv) EXPIRATION.—This subparagraph shall cease to have effect on January 1, 2021. SEC. 328. OIL AND GAS EXPLORATION AND PRO- notice to the Commission of its intention to DUCTION DEFINED. do so; and ‘‘(4) DEFINITION.—For the purposes of this ‘‘(II) the inspections will be carried out in subsection, the term ‘Federal authorization’ Section 502 of the Federal Water Pollution conformance with Federal regulations and means any authorization required under Fed- Control Act (33 U.S.C. 1362) is amended by guidelines. eral law in order to construct, expand, or op- adding at the end the following: Enforcement of any safety violation discov- erate a liquefaction or gasification natural ‘‘(24) OIL AND GAS EXPLORATION AND PRO- ered by a State commission pursuant to this gas terminal, including such permits, special DUCTION.—The term ‘oil and gas exploration, clause shall be carried out by Federal offi- use authorizations, certifications, opinions, production, processing, or treatment oper- cials. The Commission shall take appro- or other approvals as may be required, ations or transmission facilities’ means all priate action in response to a report of a vio- whether issued by a Federal or State agen- field activities or operations associated with lation not later that 90 days after receiving cy.’’. exploration, production, processing, or treat- such report. (d) JUDICIAL REVIEW.—Section 19 of the ment operations, or transmission facilities, ‘‘(iii) STATE AND LOCAL SAFETY CONSIDER- Natural Gas Act (15 U.S.C. 717r) is amended including activities necessary to prepare a ATIONS.—For the purposes of this subpara- by adding at the end the following: site for drilling and for the movement and graph, State and local safety considerations ‘‘(d) JUDICIAL REVIEW.— placement of drilling equipment, whether or include— ‘‘(1) IN GENERAL.—The United States Court not such field activities or operations may ‘‘(I) the kind and use of the facility; of Appeals for the District of Columbia Cir- be considered to be construction activities.’’.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00074 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.052 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2227 SEC. 329. OUTER CONTINENTAL SHELF PROVI- ‘‘SEC. 24. NATURAL GAS MARKET TRANS- Agriculture shall establish a joint data re- SIONS. PARENCY. trieval system that is capable of— (a) STORAGE ON THE OUTER CONTINENTAL ‘‘(a) AUTHORIZATION.—(1) Not later than 180 (A) tracking applications and formal re- SHELF.—Section 5(a)(5) of the Outer Conti- days after the date of enactment of the En- quests made in accordance with procedures nental Shelf Lands Act (43 U.S.C. 1334(a)(5)) ergy Policy Act of 2005, the Federal Energy of the Federal onshore oil and gas leasing is amended by inserting ‘‘from any source’’ Regulatory Commission shall issue rules di- program; and after ‘‘oil and gas’’. recting all entities subject to the Commis- (B) providing information regarding the (b) DEEPWATER PROJECTS.—Section 6 of the sion’s jurisdiction as provided under this Act status of the applications and requests with- Deepwater Port Act of 1974 (33 U.S.C. 1505) is to timely report information about the in the Department of the Interior and the amended by adding at the end the following: availability and prices of natural gas sold at Department of Agriculture. ‘‘(d) RELIANCE ON ACTIVITIES OF OTHER wholesale in interstate commerce to the (2) RESOURCE MAPPING.—Not later than 2 AGENCIES.—In fulfilling the requirements of Commission and price publishers. years after the date of enactment of this section 5(f)— ‘‘(2) The Commission shall evaluate the Act, the Secretary of the Interior and the ‘‘(1) to the extent that other Federal agen- data for adequate price transparency and ac- Secretary of Agriculture shall establish a cies have prepared environmental impact curacy. joint Geographic Information System map- statements, are conducting studies, or are ‘‘(3) Rules issued under this subsection re- ping system for use in— monitoring the affected human, marine, or quiring the reporting of information to the (A) tracking surface resource values to aid coastal environment, the Secretary may use Commission that may become publicly avail- in resource management; and the information derived from those activi- able shall be limited to aggregate data and (B) processing surface use plans of oper- ties in lieu of directly conducting such ac- transaction-specific data that are otherwise ation and applications for permits to drill. tivities; and required by the Commission to be made pub- SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER ‘‘(2) the Secretary may use information ob- lic. 13211; ACTIONS CONCERNING REGU- tained from any State or local government ‘‘(4) In exercising its authority under this LATIONS THAT SIGNIFICANTLY AF- or from any person.’’. section, the Commission shall not— FECT ENERGY SUPPLY, DISTRIBU- TION, OR USE. (c) NATURAL GAS DEFINED.—Section 3(13) of ‘‘(A) compete with, or displace from the the Deepwater Port Act of 1974 (33 U.S.C. market place, any price publisher; or (a) REQUIREMENT.—The head of each Fed- 1502(13)) is amended to read as follows: ‘‘(B) regulate price publishers or impose eral agency shall require that before the ‘‘(13) natural gas means— any requirements on the publication of infor- Federal agency takes any action that could ‘‘(A) natural gas unmixed; or mation. have a significant adverse effect on the sup- ‘‘(B) any mixture of natural or artificial ‘‘(b) TIMELY ENFORCEMENT.—No person ply of domestic energy resources from Fed- gas, including compressed or liquefied nat- shall be subject to any penalty under this eral public land, the Federal agency taking ural gas, natural gas liquids, liquefied petro- section with respect to a violation occurring the action shall comply with Executive leum gas, and condensate recovered from more than 3 years before the date on which Order No. 13211 (42 U.S.C. 13201 note). natural gas;’’. the Federal Energy Regulatory Commission (b) GUIDANCE.—Not later than 180 days seeks to assess a penalty. after the date of enactment of this Act, the SEC. 330. APPEALS RELATING TO PIPELINE CON- Secretary of Energy shall publish guidance STRUCTION OR OFFSHORE MINERAL ‘‘(c) LIMITATION ON COMMISSION AUTHOR- DEVELOPMENT PROJECTS. ITY.—(1) The Commission shall not condition for purposes of this section describing what constitutes a significant adverse effect on (a) AGENCY OF RECORD, PIPELINE CONSTRUC- access to interstate pipeline transportation the supply of domestic energy resources TION PROJECTS.—Any Federal administrative upon the reporting requirements authorized agency proceeding that is an appeal or re- under this section. under Executive Order No. 13211 (42 U.S.C. view under section 319 of the Coastal Zone ‘‘(2) Natural gas sales by a producer that 13201 note). (c) MEMORANDUM OF UNDERSTANDING.—The Management Act of 1972 (16 U.S.C. 1465), as are attributable to volumes of natural gas Secretary of the Interior and the Secretary amended by this Act, related to Federal au- produced by such producer shall not be sub- of Agriculture shall include in the memo- thority for an interstate natural gas pipeline ject to the rules issued pursuant to this sec- randum of understanding under section 344 construction project, including construction tion. provisions for implementing subsection (a) of of natural gas storage and liquefied natural ‘‘(3) The Commission shall not require nat- this section. gas facilities, shall use as its exclusive ural gas producers, processors, or users who record for all purposes the record compiled have a de minimis market presence to par- SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS DRILLING BAN. by the Federal Energy Regulatory Commis- ticipate in the reporting requirements pro- Congress encourages no Federal or State sion pursuant to the Commission’s pro- vided in this section.’’. permit or lease to be issued for new oil and ceeding under sections 3 and 7 of the Natural Subtitle C—Access to Federal Land gas slant, directional, or offshore drilling in Gas Act (15 U.S.C. 717b, 717f). SEC. 344. CONSULTATION REGARDING OIL AND or under one or more of the Great Lakes. (b) SENSE OF CONGRESS.—It is the sense of GAS LEASING ON PUBLIC LAND. Congress that all Federal and State agencies SEC. 358. FEDERAL COALBED METHANE REGULA- (a) IN GENERAL.—Not later than 180 days TION. with jurisdiction over interstate natural gas after the date of enactment of this Act, the Any State currently on the list of Affected pipeline construction activities should co- Secretary of the Interior and the Secretary States established under section 1339(b) of ordinate their proceedings within the time- of Agriculture shall enter into a memo- the Energy Policy Act of 1992 (42 U.S.C. frames established by the Federal Energy randum of understanding regarding oil and 13368(b)) shall be removed from the list if, Regulatory Commission when the Commis- gas leasing on— not later than 3 years after the date of enact- sion is acting under sections 3 and 7 of the (1) public lands under the jurisdiction of ment of this Act, the State takes, or prior to Natural Gas Act (15 U.S.C. 717b, 717f) to de- the Secretary of the Interior; and the date of enactment has taken, any of the termine whether a certificate of public con- (2) National Forest System lands under the actions required for removal from the list venience and necessity should be issued for a jurisdiction of the Secretary of Agriculture. under such section 1339(b). proposed interstate natural gas pipeline. (b) CONTENTS.—The memorandum of under- (c) AGENCY OF RECORD, OFFSHORE MINERAL standing shall include provisions that— Subtitle D—Refining Revitalization DEVELOPMENT PROJECTS.—Any Federal ad- (1) establish administrative procedures and SEC. 371. SHORT TITLE. ministrative agency proceeding that is an lines of authority that ensure timely proc- This subtitle may be cited as the ‘‘United appeal or review under section 319 of the essing of oil and gas lease applications, sur- States Refinery Revitalization Act of 2005’’. Coastal Zone Management Act of 1972 (16 face use plans of operation, and applications SEC. 372. FINDINGS. U.S.C. 1465), as amended by this Act, related for permits to drill, including steps for proc- Congress finds the following: to Federal authority for the permitting, ap- essing surface use plans and applications for (1) It serves the national interest to in- proval, or other authorization of energy permits to drill consistent with the crease petroleum refining capacity for gaso- projects, including projects to explore, de- timelines established by the amendment line, heating oil, diesel fuel, jet fuel, ker- velop, or produce mineral resources in or un- made by section 348; osene, and petrochemical feedstocks wher- derlying the outer Continental Shelf shall (2) eliminate duplication of effort by pro- ever located within the United States, to use as its exclusive record for all purposes viding for coordination of planning and envi- bring more supply to the markets for use by (except for the filing of pleadings) the record ronmental compliance efforts; and the American people. Nearly 50 percent of compiled by the relevant Federal permitting (3) ensure that lease stipulations are— the petroleum in the United States is used agency. (A) applied consistently; for the production of gasoline. Refined petro- SEC. 333. NATURAL GAS MARKET TRANS- (B) coordinated between agencies; and leum products have a significant impact on PARENCY. (C) only as restrictive as necessary to pro- interstate commerce. The Natural Gas Act (15 U.S.C 717 et seq.) tect the resource for which the stipulations (2) United States demand for refined petro- is amended— are applied. leum products currently exceeds the coun- (1) by redesignating section 24 as section (c) DATA RETRIEVAL SYSTEM.— try’s petroleum refining capacity to produce 25; and (1) IN GENERAL.—Not later than 1 year after such products. By 2025, United States gaso- (2) by inserting after section 23 the fol- the date of enactment of this Act, the Sec- line consumption is projected to rise from lowing: retary of the Interior and the Secretary of 8,900,000 barrels per day to 12,900,000 barrels

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00075 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.052 H20PT1 H2228 CONGRESSIONAL RECORD — HOUSE April 20, 2005 per day. Diesel fuel and home heating oil are (2) that has an unemployment rate that ex- mental reviews, shall establish a schedule becoming larger components of an increasing ceeds the national average by at least 10 per- with prompt and binding intermediate and demand for refined petroleum supply. With cent of the national average, as set by the ultimate deadlines for the review of, and the increase in air travel, jet fuel consump- Department of Labor, Bureau of Labor Sta- Federal authorization decisions relating to, tion is projected to be 789,000 barrels per day tistics, at the time of the designation as a refinery facility siting and operation. higher in 2025 than today. Refinery Revitalization Zone. (2) PREAPPLICATION PROCESS.—Prior to es- (3) The petroleum refining industry is oper- SEC. 375. MEMORANDUM OF UNDERSTANDING. tablishing the schedule, the Secretary shall ating at 95 percent of capacity. The United (a) IN GENERAL.—Not later than 90 days provide an expeditious preapplication mech- States is currently importing 5 percent of its after the date of enactment of this Act, the anism for applicants to confer with the agen- refined petroleum products and because of Secretary shall enter into a memorandum of cies involved and to have each agency com- the stringent United States gasoline and die- understanding with the Administrator for municate to the prospective applicant within sel fuel specifications, few foreign refiners the purposes of this subtitle. The Secretary 60 days concerning— can produce the clean fuels required in the and the Administrator shall each designate a (A) the likelihood of approval for a poten- United States and the number of foreign sup- senior official responsible for, and dedicate tial refinery facility; and pliers that can produce United States qual- sufficient other staff and resources to en- (B) key issues of concern to the agencies ity gasoline is decreasing. sure, full implementation of the purposes of and local community. (4) Refiners are subject to significant envi- this subtitle and any regulations enacted (3) SCHEDULE.—The Secretary shall con- ronmental and other regulations and face pursuant to this subtitle. sider the preapplication findings under para- several new Clean Air Act requirements over (b) ADDITIONAL SIGNATORIES.—The Gov- graph (2) in setting the schedule and shall the next decade. New Clean Air Act require- ernor of any State, and the appropriate rep- ensure that once an application has been ments will benefit the environment but will resentative of any Indian Tribe, with juris- submitted with such information as the Sec- also require substantial capital investment diction over a Refinery Revitalization Zone, retary considers necessary, all permit deci- and additional government permits. as designated by the Secretary pursuant to sions and related environmental reviews (5) No new refinery has been built in the section 374, may be signatories to the memo- under all applicable Federal laws shall be United States since 1976 and many smaller randum of understanding under this section. completed within 6 months or, where cir- domestic refineries have become idle since SEC. 376. STATE ENVIRONMENTAL PERMITTING cumstances require otherwise, as soon as the removal of the Domestic Crude Oil Allo- ASSISTANCE. thereafter practicable. cation Program and because of regulatory Not later than 30 days after a Revitaliza- (c) CONSOLIDATED ENVIRONMENTAL RE- uncertainty and generally low returns on tion Program Qualifying State becomes a VIEW.— capital employed. Today, the United States signatory to the memorandum of under- (1) LEAD AGENCY.—In carrying out its role has 149 refineries, down from 324 in 1981. Res- standing under section 375(b)— as the lead Federal agency for environ- toration of recently idled refineries alone (1) the Secretary shall designate one or mental review, the Department shall coordi- would amount to 483,570 barrels a day in ad- more employees of the Department with ex- nate all applicable Federal actions for com- ditional capacity, or approximately 3.3 per- pertise relating to the siting and operation plying with the National Environmental Pol- cent of the total operating capacity. of refineries to provide legal and technical icy Act of 1969 (42 U.S.C. 4321 et seq.) and (6) Refiners have met growing demand by assistance to that Revitalization Program shall be responsible for preparing any envi- increasing the use of existing equipment and Qualifying State; and ronmental impact statement required by increasing the efficiency and capacity of ex- (2) the Administrator shall designate, to section 102(2)(C) of that Act (42 U.S.C. isting plants. But refining capacity has provide legal and technical assistance for 4332(2)(C)) or such other form of environ- begun to lag behind peak summer demand. that Revitalization Program Qualifying mental review as is required. (7) Heavy industry and manufacturing jobs State, one or more employees of the Envi- (2) CONSOLIDATION OF STATEMENTS.—In car- have closed or relocated due to barriers to ronmental Protection Agency with expertise rying out paragraph (1), if the Department investment, burdensome regulation, and on regulatory issues, relating to the siting determines an environmental impact state- high costs of operation, among other rea- and operation of refineries, with respect to ment is required, the Department shall pre- sons. each of— pare a single environmental impact state- (8) Because the production and disruption (A) the Clean Air Act (42 U.S.C. 7401 et ment, which shall consolidate the environ- in supply of refined petroleum products has a seq.); mental reviews of all Federal agencies con- significant impact on interstate commerce, (B) the Federal Water Pollution Control sidering any aspect of the project covered by it serves the national interest to increase Act (33 U.S.C. 1251 et seq.); the environmental impact statement. the domestic refining operating capacity. (C) the Safe Drinking Water Act (42 U.S.C. (d) OTHER AGENCIES.—Each Federal agency (10) More regulatory certainty for refinery 300f et seq.); considering an aspect of the siting or oper- ation of a refinery facility in a Refinery Re- owners is needed to stimulate investment in (D) the Comprehensive Environmental Re- vitalization Zone shall cooperate with the increased refinery capacity and required pro- sponse, Compensation, and Liability Act of Department and comply with the deadlines cedures for Federal, State, and local regu- 1980 (42 U.S.C. 9601 et seq.); established by the Department in the prepa- latory approvals need to be streamlined to (E) the Solid Waste Disposal Act (42 U.S.C. ration of any environmental impact state- ensure that increased refinery capacity can 6901 et seq.); ment or such other form of review as is re- be developed and operated in a safe, timely, (F) the Toxic Substances Control Act (15 quired. and cost-effective manner. U.S.C. 2601 et seq.); (e) EXCLUSIVE RECORD.—The Department (11) The proposed Yuma Arizona Refinery, (G) the National Historic Preservation Act a grassroots refinery facility, which only re- shall, with the cooperation of Federal and (16 U.S.C. 470 et seq.); and State administrative agencies and officials, cently received its Federal air quality per- (H) the National Environmental Policy Act maintain a complete consolidated record of mit after 5 years under the current regu- of 1969 (42 U.S.C. 4321 et seq.). all decisions made or actions taken by the latory process, and is just now beginning its SEC. 377. COORDINATION AND EXPEDITIOUS RE- Department or by a Federal administrative environmental impact statement and local VIEW OF PERMITTING PROCESS. agency or officer (or State administrative permitting process, serves as an example of (a) DEPARTMENT OF ENERGY AS LEAD AGEN- agency or officer acting under delegated Fed- the obstacles a refiner would have to over- CY.—Upon written request of a prospective eral authority) with respect to the siting or come to reopen an idle refinery. applicant for Federal authorization for a re- operation of a refinery facility in a Refinery SEC. 373. PURPOSE. finery facility in a Refinery Revitalization Revitalization Zone. Such record shall be the The purpose of this subtitle is to encourage Zone, the Department shall act as the lead exclusive record for any Federal administra- the expansion of the United States refining Federal agency for the purposes of coordi- tive proceeding that is an appeal or review of capacity by providing an accelerated review nating all applicable Federal authorizations any such decision made or action taken. and approval process of all regulatory ap- and environmental reviews of the refining fa- (f) APPEALS.—In the event any agency has provals for certain idle refineries and lending cility. To the maximum extent practicable denied a Federal authorization required for a corresponding legal and technical assistance under applicable Federal law, the Secretary refinery facility in a Refinery Revitalization to States with resources that may be inad- shall coordinate this Federal authorization Zone, or has failed to act by a deadline es- equate to meet such permit review demands. and review process with any Indian Tribes tablished by the Secretary pursuant to sub- SEC. 374. DESIGNATION OF REFINERY REVITAL- and State and local agencies responsible for section (b) for deciding whether to issue the IZATION ZONES. conducting any separate permitting and en- Federal authorization, the applicant or any Not later than 90 days after the date of en- vironmental reviews of the refining facility. State in which the refinery facility would be actment of this Act, the Secretary shall des- (b) SCHEDULE.— located may file an appeal with the Sec- ignate as a Refinery Revitalization Zone any (1) IN GENERAL.—The Secretary, in coordi- retary. Based on the record maintained area— nation with the agencies with authority over under subsection (e), and in consultation (1) that— Federal authorizations and, as appropriate, with the affected agency, the Secretary may (A) has experienced mass layoffs at manu- with Indian Tribes and State and local agen- then either issue the necessary Federal au- facturing facilities, as determined by the cies that are willing to coordinate their sep- thorization with appropriate conditions, or Secretary of Labor; or arate permitting and environmental reviews deny the appeal. The Secretary shall issue a (B) contains an idle refinery; and with the Federal authorizations and environ- decision within 60 days after the filing of the

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00076 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.052 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2229 appeal. In making a decision under this sub- list of all activities expected to be under- Agency and interested entities, including section, the Secretary shall comply with ap- taken; coal producers, industries using coal, organi- plicable requirements of Federal law, includ- (3) a detailed list of technical milestones zations to promote coal or advanced coal ing each of the laws referred to in section for each coal and related technology that technologies, environmental organizations, 376(2)(A) through (H). Any judicial appeal of will be pursued; and and organizations representing workers. the Secretary’s decision shall be to the (4) a detailed description of how the pro- (4) EXISTING UNITS.—In the case of projects United States Court of Appeals for the Dis- gram will avoid problems enumerated in at units in existence on the date of enact- trict of Columbia. General Accounting Office reports on the ment of this Act, in lieu of the thermal effi- (g) CONFORMING REGULATIONS.—Not later Clean Coal Technology Program, including ciency requirements set forth in paragraph than 6 months after the date of enactment of problems that have resulted in unspent funds (1)(B)(iv) and (2)(D), the milestones shall be this Act, the Secretary shall issue any regu- and projects that failed either financially or designed to achieve an overall thermal de- lations necessary to implement this subtitle. scientifically. sign efficiency improvement, compared to SEC. 378. COMPLIANCE WITH ALL ENVIRON- SEC. 402. PROJECT CRITERIA. the efficiency of the unit as operated, of not MENTAL REGULATIONS REQUIRED. (a) IN GENERAL.—The Secretary shall not less than— Nothing in this subtitle shall be construed provide funding under this subtitle for any (A) 7 percent for coal of more than 9,000 to waive the applicability of environmental project that does not advance efficiency, en- Btu; laws and regulations to any refinery facility. vironmental performance, and cost competi- (B) 6 percent for coal of 7,000 to 9,000 Btu; SEC. 379. DEFINITIONS. tiveness well beyond the level of tech- or For the purposes of this subtitle, the nologies that are in commercial service or (C) 4 percent for coal of less than 7,000 Btu. term— have been demonstrated on a scale that the (5) PERMITTED USES.—In carrying out this (1) ‘‘Administrator’’ means the Adminis- Secretary determines is sufficient to dem- subtitle, the Secretary may fund projects trator of the Environmental Protection onstrate that commercial service is viable as that include, as part of the project, the sepa- Agency; of the date of enactment of this Act. ration and capture of carbon dioxide. The (2) ‘‘Department’’ means the Department (b) TECHNICAL CRITERIA FOR CLEAN COAL thermal efficiency goals of paragraphs (1), of Energy; POWER INITIATIVE.— (2), and (4) shall not apply for projects that (3) ‘‘Federal authorization’’ means any au- (1) GASIFICATION PROJECTS.— separate and capture at least 50 percent of thorization required under Federal law (in- (A) IN GENERAL.—In allocating the funds the facility’s potential emissions of carbon cluding the Clean Air Act, the Federal Water made available under section 401(a), the Sec- dioxide. Pollution Control Act, the Safe Drinking retary shall ensure that at least 60 percent of (c) FINANCIAL CRITERIA.—The Secretary Water Act, the Comprehensive Environ- the funds are used only for projects on coal- shall not provide a funding award under this mental Response, Compensation, and Liabil- based gasification technologies, including subtitle unless the recipient documents to ity Act of 1980, the Solid Waste Disposal Act, gasification combined cycle, gasification the satisfaction of the Secretary that— the Toxic Substances Control Act, the Na- fuel cells, gasification coproduction, and hy- (1) the award recipient is financially viable tional Historic Preservation Act, and the Na- brid gasification/combustion. without the receipt of additional Federal tional Environmental Policy Act of 1969) in funding; (B) TECHNICAL MILESTONES.—The Secretary order to site, construct, upgrade, or operate shall periodically set technical milestones (2) the recipient will provide sufficient in- a refinery facility within a Refinery Revital- specifying the emission and thermal effi- formation to the Secretary to enable the ization Zone, including such permits, special ciency levels that coal gasification projects Secretary to ensure that the award funds are use authorizations, certifications, opinions, under this subtitle shall be designed, and spent efficiently and effectively; and or other approvals as may be required, reasonably expected, to achieve. The tech- (3) a market exists for the technology whether issued by a Federal, State, or local nical milestones shall become more restric- being demonstrated or applied, as evidenced agency; tive during the life of the program. The Sec- by statements of interest in writing from po- (4) ‘‘idle refinery’’ means any real property retary shall set the periodic milestones so as tential purchasers of the technology. (d) FINANCIAL ASSISTANCE.—The Secretary site that has been used at any time for a re- to achieve by 2020 coal gasification projects shall provide financial assistance to projects finery facility since December 31, 1979, that able— has not been in operation after April 1, 2005; that meet the requirements of subsections (i) to remove 99 percent of sulfur dioxide; (a), (b), and (c) and are likely to— (5) ‘‘refinery facility’’ means any facility (ii) to emit not more than .05 lbs of NO per designed and operated to receive, unload, x (1) achieve overall cost reductions in the million Btu; utilization of coal to generate useful forms store, process and refine raw crude oil by any (iii) to achieve substantial reductions in chemical or physical process, including dis- of energy; mercury emissions; and (2) improve the competitiveness of coal tillation, fluid catalytic cracking, (iv) to achieve a thermal efficiency of— hydrocracking, coking, alkylation, among various forms of energy in order to (I) 60 percent for coal of more than 9,000 maintain a diversity of fuel choices in the etherification, polymerization, catalytic re- Btu; forming, isomerization, hydrotreating, United States to meet electricity generation (II) 59 percent for coal of 7,000 to 9,000 Btu; requirements; and blending, and any combination thereof; and (6) ‘‘Revitalization Program Qualifying (3) demonstrate methods and equipment (III) 50 percent for coal of less than 7,000 that are applicable to 25 percent of the elec- State’’ means a State or Indian Tribe that— Btu. (A) has entered into the memorandum of tricity generating facilities, using various (2) OTHER PROJECTS.—The Secretary shall understanding pursuant to section 375(b); types of coal, that use coal as the primary periodically set technical milestones and en- feedstock as of the date of enactment of this and sure that up to 40 percent of the funds appro- (B) has established a refining infrastruc- Act. priated pursuant to section 401(a) are used (e) FEDERAL SHARE.—The Federal share of ture coordination office that the Secretary for projects not described in paragraph (1). finds will facilitate Federal-State coopera- the cost of a coal or related technology The milestones shall specify the emission project funded by the Secretary under this tion for the purposes of this subtitle; and and thermal efficiency levels that projects (7) ‘‘Secretary’’ means the Secretary of En- subtitle shall not exceed 50 percent. funded under this paragraph shall be de- (f) APPLICABILITY.—No technology, or level ergy. signed to and reasonably expected to of emission reduction, shall be treated as TITLE IV—COAL achieve. The technical milestones shall be- adequately demonstrated for purposes of sec- Subtitle A—Clean Coal Power Initiative come more restrictive during the life of the tion 111 of the Clean Air Act (42 U.S.C. 7411), SEC. 401. AUTHORIZATION OF APPROPRIATIONS. program. The Secretary shall set the peri- achievable for purposes of section 169 of that (a) CLEAN COAL POWER INITIATIVE.—There odic milestones so as to achieve by 2010 Act (42 U.S.C. 7479), or achievable in practice are authorized to be appropriated to the Sec- projects able— for purposes of section 171 of that Act (42 retary of Energy (referred to in this title as (A) to remove 97 percent of sulfur dioxide; U.S.C. 7501) solely by reason of the use of the ‘‘Secretary’’) to carry out the activities (B) to emit no more than .08 lbs of NOx per such technology, or the achievement of such authorized by this subtitle $200,000,000 for million Btu; emission reduction, by 1 or more facilities each of fiscal years 2006 through 2014, to re- (C) to achieve substantial reductions in receiving assistance under this subtitle. main available until expended. mercury emissions; and SEC. 403. REPORT. (b) REPORT.—The Secretary shall submit to (D) to achieve a thermal efficiency of— Not later than 1 year after the date of en- Congress the report required by this sub- (i) 45 percent for coal of more than 9,000 actment of this Act, and once every 2 years section not later than March 31, 2007. The re- Btu; thereafter through 2014, the Secretary, in port shall include, with respect to subsection (ii) 44 percent for coal of 7,000 to 9,000 Btu; consultation with other appropriate Federal (a), a 10-year plan containing— and agencies, shall submit to Congress a report (1) a detailed assessment of whether the (iii) 40 percent for coal of less than 7,000 describing— aggregate funding levels provided under sub- Btu. (1) the technical milestones set forth in section (a) are the appropriate funding levels (3) CONSULTATION.—Before setting the tech- section 402 and how those milestones ensure for that program; nical milestones under paragraphs (1)(B) and progress toward meeting the requirements of (2) a detailed description of how proposals (2), the Secretary shall consult with the Ad- subsections (b)(1)(B) and (b)(2) of section 402; will be solicited and evaluated, including a ministrator of the Environmental Protection and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00077 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 H2230 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (2) the status of projects funded under this retary $300,000,000 for fiscal year 2006, ‘‘(1) prioritization of projects whose instal- subtitle. $100,000,000 for fiscal year 2007, $40,000,000 for lation is likely to result in significant air SEC. 404. CLEAN COAL CENTERS OF EXCEL- fiscal year 2008, $30,000,000 for fiscal year quality improvements in nonattainment air LENCE. 2009, and $30,000,000 for fiscal year 2010, to re- quality areas; As part of the program authorized in sec- main available until expended, for carrying ‘‘(2) prioritization of projects that result in tion 401, the Secretary shall award competi- out the program for pollution control the repowering or replacement of older, less tive, merit-based grants to universities for projects, which may include— efficient units; the establishment of Centers of Excellence ‘‘(1) pollution control equipment and proc- ‘‘(3) documented broad interest in the pro- for Energy Systems of the Future. The Sec- esses for the control of mercury air emis- curement of the equipment and utilization of retary shall provide grants to universities sions; the processes used in the projects by elec- that show the greatest potential for advanc- ‘‘(2) pollution control equipment and proc- trical generator owners or operators; ing new clean coal technologies. esses for the control of nitrogen dioxide air ‘‘(4) equipment and processes beginning in Subtitle B—Clean Power Projects emissions or sulfur dioxide emissions; 2006 through 2011 that are projected to ‘‘(3) pollution control equipment and proc- achieve an thermal efficiency of— SEC. 411. COAL TECHNOLOGY LOAN. esses for the mitigation or collection of more ‘‘(A) 40 percent for coal of more than 9,000 There are authorized to be appropriated to than one pollutant; Btu per pound based on higher heating val- the Secretary $125,000,000 to provide a loan to ‘‘(4) advanced combustion technology for ues; the owner of the experimental plant con- the control of at least two pollutants, in- ‘‘(B) 38 percent for coal of 7,000 to 9,000 Btu structed under United States Department of cluding mercury, particulate matter, nitro- per pound based on higher heating values; Energy cooperative agreement number DE- gen oxides, and sulfur dioxide, which may and FC-22–91PC90544 on such terms and condi- also be designed to improve the energy effi- ‘‘(C) 36 percent for coal of less than 7,000 tions as the Secretary determines, including ciency of the unit; and Btu per pound based on higher heating val- interest rates and upfront payments. ‘‘(5) advanced pollution control equipment ues, SEC. 412. COAL GASIFICATION. and processes designed to allow use of the except that energy used for coproduction or The Secretary is authorized to provide waste byproducts or other byproducts of the cogeneration shall not be counted in calcu- loan guarantees for a project to produce en- equipment or an electrical generation unit lating the thermal efficiency under this ergy from a plant using integrated gasifi- designed to allow the use of byproducts. paragraph; and cation combined cycle technology of at least Funds appropriated under this subsection ‘‘(5) equipment and processes beginning in 400 megawatts in capacity that produces which are not awarded before fiscal year 2012 2012 and 2013 that are projected to achieve an power at competitive rates in deregulated may be applied to projects under subsection thermal efficiency of— energy generation markets and that does not (b), in addition to amounts authorized under ‘‘(A) 45 percent for coal of more than 9,000 receive any subsidy (direct or indirect) from subsection (b). Btu per pound based on higher heating val- ratepayers. ‘‘(b) GENERATION PROJECTS.—There are au- ues; SEC. 414. PETROLEUM COKE GASIFICATION. thorized to be appropriated to the Secretary ‘‘(B) 44 percent for coal of 7,000 to 9,000 Btu The Secretary is authorized to provide $250,000,000 for fiscal year 2007, $350,000,000 for per pound based on higher heating values; loan guarantees for at least 5 petroleum coke fiscal year 2008, $400,000,000 for fiscal year and gasification projects. 2009, $400,000,000 for fiscal year 2010, ‘‘(C) 40 percent for coal of less than 7,000 SEC. 416. ELECTRON SCRUBBING DEMONSTRA- $400,000,000 for fiscal year 2011, $400,000,000 for Btu per pound based on higher heating val- TION. fiscal year 2012, and $300,000,000 for fiscal ues, The Secretary shall use $5,000,000 from year 2013, to remain available until ex- except that energy used for coproduction or amounts appropriated to initiate, through pended, for generation projects and air pollu- cogeneration shall not be counted in calcu- the Chicago Operations Office, a project to tion control projects. Such projects may in- lating the thermal efficiency under this demonstrate the viability of high-energy clude— paragraph. electron scrubbing technology on commer- ‘‘(1) coal-based electrical generation equip- ‘‘(b) SELECTION.—(1) In selecting the cial-scale electrical generation using high- ment and processes, including gasification projects, up to 25 percent of the projects se- sulfur coal. combined cycle or other coal-based genera- lected may be either coproduction or cogen- Subtitle D—Coal and Related Programs tion equipment and processes; eration or other gasification projects, but at least 25 percent of the projects shall be for SEC. 441. CLEAN AIR COAL PROGRAM. ‘‘(2) associated environmental control the sole purpose of electrical generation, and (a) AMENDMENT.—The Energy Policy Act of equipment, that will be cost-effective and priority should be given to equipment and 1992 is amended by adding the following new that is designed to meet anticipated regu- projects less than 600 MW to foster and pro- title at the end thereof: latory requirements; ‘‘(3) coal-based electrical generation equip- mote standard designs. ‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM ment and processes, including gasification ‘‘(2) The Secretary shall give priority to ‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. fuel cells, gasification coproduction, and hy- projects that have been developed and dem- ‘‘(a) FINDINGS.—The Congress finds that— brid gasification/combustion projects; and onstrated that are not yet cost competitive, ‘‘(1) new environmental regulations ‘‘(4) advanced coal-based electrical genera- and for coal energy generation projects that present additional challenges for coal-fired tion equipment and processes, including oxi- advance efficiency, environmental perform- electrical generation in the private market- dation combustion techniques, ultra-super- ance, or cost competitiveness significantly place; and critical boilers, and chemical looping, which beyond the level of pollution control equip- ‘‘(2) the Department of Energy, in coopera- the Secretary determines will be cost-effec- ment that is in operation on a full scale. tion with industry, has already fully devel- tive and could substantially contribute to ‘‘SEC. 3106. FINANCIAL CRITERIA. oped and commercialized several new clean- meeting anticipated environmental or en- ‘‘(a) IN GENERAL.—The Secretary shall only coal technologies that will allow the clean ergy needs. provide financial assistance to projects that use of coal. ‘‘(c) LIMITATION.—Funds placed at risk dur- meet the requirements of sections 3103 and ‘‘(b) PURPOSES.—The purposes of this title ing any fiscal year for Federal loans or loan 3104 and are likely to— are to— guarantees pursuant to this title may not ‘‘(1) achieve overall cost reductions in the ‘‘(1) promote national energy policy and exceed 30 percent of the total funds obligated utilization of coal to generate useful forms energy security, diversity, and economic under this title. of energy; and competitiveness benefits that result from ‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT ‘‘(2) improve the competitiveness of coal in the increased use of coal; CRITERIA. order to maintain a diversity of domestic ‘‘(2) mitigate financial risks, reduce the ‘‘The Secretary shall pursuant to author- fuel choices in the United States to meet cost, and increase the marketplace accept- izations contained in section 3103 provide electricity generation requirements. ance of the new clean coal technologies; and funding for air pollution control projects de- ‘‘(b) CONDITIONS.—The Secretary shall not ‘‘(3) advance the deployment of pollution signed to facilitate compliance with Federal provide a funding award under this title un- control equipment to meet the current and and State environmental regulations, includ- less— future obligations of coal-fired generation ing any regulation that may be established ‘‘(1) the award recipient is financially via- units regulated under the Clean Air Act (42 with respect to mercury. ble without the receipt of additional Federal U.S.C. 7402 and following). ‘‘SEC. 3105. CRITERIA FOR GENERATION funding; and ‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. PROJECTS. ‘‘(2) the recipient provides sufficient infor- ‘‘The Secretary shall carry out a program ‘‘(a) CRITERIA.—The Secretary shall estab- mation to the Secretary for the Secretary to to facilitate production and generation of lish criteria on which selection of individual ensure that the award funds are spent effi- coal-based power and the installation of pol- projects described in section 3103(b) should ciently and effectively. lution control equipment. be based. The Secretary may modify the cri- ‘‘(c) EQUAL ACCESS.—The Secretary shall, ‘‘SEC. 3103. AUTHORIZATION OF APPROPRIA- teria as appropriate to reflect improvements to the extent practical, utilize cooperative TIONS. in equipment, except that the criteria shall agreement, loan guarantee, and direct Fed- ‘‘(a) POLLUTION CONTROL PROJECTS.—There not be modified to be less stringent. These eral loan mechanisms designed to ensure are authorized to be appropriated to the Sec- selection criteria shall include— that all electrical generation owners have

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00078 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2231 equal access to these technology deployment (B) by striking the items relating to sec- ‘‘(9) The term ‘Secretary’ means the Sec- incentives. The Secretary shall develop and tions 213 through 216 and inserting the fol- retary of the Interior. direct a competitive solicitation process for lowing: ‘‘(10) The term ‘tribal energy resource de- the selection of technologies and projects ‘‘Sec. 213. Establishment of policy for Na- velopment organization’ means an organiza- under this title. tional Nuclear Security Admin- tion of 2 or more entities, at least 1 of which ‘‘SEC. 3107. FEDERAL SHARE. istration. is an Indian tribe, that has the written con- ‘‘The Federal share of the cost of a coal or ‘‘Sec. 214. Establishment of security, coun- sent of the governing bodies of all Indian related technology project funded by the terintelligence, and intel- tribes participating in the organization to Secretary under this title shall not exceed 50 ligence policies. apply for a grant, loan, or other assistance percent. For purposes of this title, Federal ‘‘Sec. 215. Office of Counterintelligence. authorized by section 2602. funding includes only appropriated funds. ‘‘Sec. 216. Office of Intelligence. ‘‘(11) The term ‘tribal land’ means any land ‘‘SEC. 3108. APPLICABILITY. ‘‘Sec. 217. Office of Indian Energy Policy and or interests in land owned by any Indian ‘‘No technology, or level of emission reduc- Programs.’’. tribe, title to which is held in trust by the tion, shall be treated as adequately dem- (2) Section 5315 of title 5, United States United States or which is subject to a re- onstrated for purposes of section 111 of the Code, is amended by inserting after the item striction against alienation under laws of Clean Air Act (42 U.S.C. 7411), achievable for related to the Inspector General, Depart- the United States. purposes of section 169 of the Clean Air Act ment of Energy the following new item: ‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE (42 U.S.C. 7479), or achievable in practice for ‘‘Director, Office of Indian Energy Policy DEVELOPMENT. purposes of section 171 of the Clean Air Act and Programs, Department of Energy.’’. ‘‘(a) DEPARTMENT OF THE INTERIOR PRO- (42 U.S.C. 7501) solely by reason of the use of SEC. 503. INDIAN ENERGY. such technology, or the achievement of such GRAM.— (a) IN GENERAL.—Title XXVI of the Energy emission reduction, by one or more facilities ‘‘(1) To assist Indian tribes in the develop- Policy Act of 1992 (25 U.S.C. 3501 et seq.) is ment of energy resources and further the receiving assistance under this title.’’. amended to read as follows: (b) TABLE OF CONTENTS AMENDMENT.—The goal of Indian self-determination, the Sec- table of contents of the Energy Policy Act of ‘‘TITLE XXVI—INDIAN ENERGY retary shall establish and implement an In- 1992 is amended by adding at the end the fol- RESOURCES dian energy resource development program lowing: ‘‘SEC. 2601. DEFINITIONS. to assist consenting Indian tribes and tribal ‘‘For purposes of this title: energy resource development organizations ‘‘TITLE XXXI—CLEAN AIR COAL in achieving the purposes of this title. PROGRAM ‘‘(1) The term ‘Director’ means the Direc- tor of the Office of Indian Energy Policy and ‘‘(2) In carrying out the Program, the Sec- ‘‘Sec. 3101. Findings; purposes; definitions. Programs, Department of Energy. retary shall— ‘‘Sec. 3102. Authorization of program. ‘‘(2) The term ‘Indian land’ means— ‘‘(A) provide development grants to Indian ‘‘Sec. 3103. Authorization of appropriations. ‘‘(A) any land located within the bound- tribes and tribal energy resource develop- ‘‘Sec. 3104. Air pollution control project cri- aries of an Indian reservation, pueblo, or ment organizations for use in developing or teria. rancheria; and obtaining the managerial and technical ca- ‘‘Sec. 3105. Criteria for generation projects. pacity needed to develop energy resources on ‘‘Sec. 3106. Financial criteria. ‘‘(B) any land not located within the boundaries of an Indian reservation, pueblo, Indian land, and to properly account for re- ‘‘Sec. 3107. Federal share. sulting energy production and revenues; ‘‘Sec. 3108. Applicability.’’. or rancheria, the title to which is held— ‘‘(i) in trust by the United States for the ‘‘(B) provide grants to Indian tribes and TITLE V—INDIAN ENERGY benefit of an Indian tribe or an individual In- tribal energy resource development organi- SEC. 501. SHORT TITLE. dian; zations for use in carrying out projects to This title may be cited as the ‘‘Indian ‘‘(ii) by an Indian tribe or an individual In- promote the integration of energy resources, Tribal Energy Development and Self-Deter- dian, subject to restriction against alien- and to process, use, or develop those energy mination Act of 2005’’. ation under laws of the United States; or resources, on Indian land; and SEC. 502. OFFICE OF INDIAN ENERGY POLICY ‘‘(iii) by a dependent Indian community. ‘‘(C) provide low-interest loans to Indian AND PROGRAMS. ‘‘(3) The term ‘Indian reservation’ in- tribes and tribal energy resource develop- (a) IN GENERAL.—Title II of the Depart- cludes— ment organizations for use in the promotion ment of Energy Organization Act (42 U.S.C. ‘‘(A) an Indian reservation in existence in of energy resource development on Indian 7131 et seq.) is amended by adding at the end any State or States as of the date of enact- land and integration of energy resources. the following: ment of this paragraph; ‘‘(3) There are authorized to be appro- ‘‘OFFICE OF INDIAN ENERGY POLICY AND ‘‘(B) a public domain Indian allotment; and priated to carry out this subsection such PROGRAMS ‘‘(C) a dependent Indian community lo- sums as are necessary for each of fiscal years 2006 through 2016. ‘‘SEC. 217. cated within the borders of the United ‘‘(a) ESTABLISHMENT.—There is established States, regardless of whether the community ‘‘(b) DEPARTMENT OF ENERGY INDIAN EN- within the Department an Office of Indian is located— ERGY EDUCATION PLANNING AND MANAGEMENT Energy Policy and Programs (referred to in ‘‘(i) on original or acquired territory of the ASSISTANCE PROGRAM.— this section as the ‘Office’). The Office shall community; or ‘‘(1) The Director shall establish programs be headed by a Director, who shall be ap- ‘‘(ii) within or outside the boundaries of to assist consenting Indian tribes in meeting pointed by the Secretary and compensated at any particular State. energy education, research and development, a rate equal to that of level IV of the Execu- ‘‘(4) The term ‘Indian tribe’ has the mean- planning, and management needs. tive Schedule under section 5315 of title 5, ing given the term in section 4 of the Indian ‘‘(2) In carrying out this subsection, the United States Code. Self-Determination and Education Assist- Director may provide grants, on a competi- ‘‘(b) DUTIES OF DIRECTOR.—The Director, in ance Act (25 U.S.C. 450b), except that the tive basis, to an Indian tribe or tribal energy accordance with Federal policies promoting term ‘Indian tribe’, for the purpose of para- resource development organization for use in Indian self-determination and the purposes graph (11) and sections 2603(b)(3) and 2604, carrying out— of this Act, shall provide, direct, foster, co- shall not include any Native Corporation. ‘‘(A) energy, energy efficiency, and energy ordinate, and implement energy planning, ‘‘(5) The term ‘integration of energy re- conservation programs; education, management, conservation, and sources’ means any project or activity that ‘‘(B) studies and other activities sup- delivery programs of the Department that— promotes the location and operation of a fa- porting tribal acquisitions of energy sup- ‘‘(1) promote Indian tribal energy develop- cility (including any pipeline, gathering sys- plies, services, and facilities; ment, efficiency, and use; tem, transportation system or facility, or ‘‘(C) planning, construction, development, ‘‘(2) reduce or stabilize energy costs; electric transmission or distribution facil- operation, maintenance, and improvement of ‘‘(3) enhance and strengthen Indian tribal ity) on or near Indian land to process, refine, tribal electrical generation, transmission, energy and economic infrastructure relating generate electricity from, or otherwise de- and distribution facilities located on Indian to natural resource development and elec- velop energy resources on, Indian land. land; and trification; and ‘‘(6) The term ‘Native Corporation’ has the ‘‘(D) development, construction, and inter- ‘‘(4) bring electrical power and service to meaning given the term in section 3 of the connection of electric power transmission fa- Indian land and the homes of tribal members Alaska Native Claims Settlement Act (43 cilities located on Indian land with other located on Indian lands or acquired, con- U.S.C. 1602). electric transmission facilities. structed, or improved (in whole or in part) ‘‘(7) The term ‘organization’ means a part- ‘‘(3)(A) The Director may develop, in con- with Federal funds.’’. nership, joint venture, limited liability com- sultation with Indian tribes, a formula for (b) CONFORMING AMENDMENTS.— pany, or other unincorporated association or providing grants under this subsection. (1) The table of contents of the Department entity that is established to develop Indian ‘‘(B) In providing a grant under this sub- of Energy Organization Act (42 U.S.C. prec. energy resources. section, the Director shall give priority to an 7101) is amended— ‘‘(8) The term ‘Program’ means the Indian application received from an Indian tribe (A) in the item relating to section 209, by energy resource development program estab- with inadequate electric service (as deter- striking ‘‘Section’’ and inserting ‘‘Sec.’’; and lished under section 2602(a). mined by the Director).

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00079 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 H2232 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(4) The Secretary of Energy may issue ‘‘(B) are responsible for protecting the en- activities under such agreement described in such regulations as necessary to carry out vironment. subparagraphs (D) and (E) of subsection this subsection. ‘‘(c) OTHER ASSISTANCE.—In carrying out (e)(2)). ‘‘(5) There are authorized to be appro- the obligations of the United States under ‘‘(c) RENEWALS.—A lease or business agree- priated to carry out this subsection such this title, the Secretary shall ensure, to the ment entered into or a right-of-way granted sums as are necessary for each of fiscal years maximum extent practicable and to the ex- by an Indian tribe under this section may be 2006 through 2016. tent of available resources, that upon the re- renewed at the discretion of the Indian tribe ‘‘(c) DEPARTMENT OF ENERGY LOAN GUAR- quest of an Indian tribe, the Indian tribe in accordance with this section. ANTEE PROGRAM.— shall have available scientific and technical ‘‘(d) VALIDITY.—No lease, business agree- ‘‘(1) Subject to paragraph (3), the Secretary information and expertise, for use in the In- ment, or right-of-way relating to the devel- of Energy may provide loan guarantees (as dian tribe’s regulation, development, and opment of tribal energy resources pursuant defined in section 502 of the Federal Credit management of energy resources on Indian to the provisions of this section shall be Reform Act of 1990 (2 U.S.C. 661a)) for not land. The Secretary may fulfill this responsi- valid unless the lease, business agreement, more than 90 percent of the unpaid principal bility either directly, through the use of or right-of-way is authorized by the provi- and interest due on any loan made to any In- Federal officials, or indirectly, by providing sions of a tribal energy resource agreement dian tribe for energy development. financial assistance to the Indian tribe to se- approved by the Secretary under subsection cure independent assistance. ‘‘(2) A loan guarantee under this sub- (e)(2). ‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, section shall be made by— ‘‘(e) TRIBAL ENERGY RESOURCE AGREE- ‘‘(A) a financial institution subject to ex- AND RIGHTS-OF-WAY INVOLVING EN- ERGY DEVELOPMENT OR TRANS- MENTS.— amination by the Secretary of Energy; or MISSION. ‘‘(1) On issuance of regulations under para- ‘‘(B) an Indian tribe, from funds of the In- ‘‘(a) LEASES AND BUSINESS AGREEMENTS.— graph (8), an Indian tribe may submit to the dian tribe. Subject to the provisions of this section— Secretary for approval a tribal energy re- ‘‘(3) The aggregate outstanding amount ‘‘(1) an Indian tribe may, at its discretion, source agreement governing leases, business guaranteed by the Secretary of Energy at enter into a lease or business agreement for agreements, and rights-of-way under this any time under this subsection shall not ex- the purpose of energy resource development section. ceed $2,000,000,000. on tribal land, including a lease or business ‘‘(2)(A) Not later than 180 days after the ‘‘(4) The Secretary of Energy may issue agreement for— date on which the Secretary receives a tribal such regulations as the Secretary of Energy ‘‘(A) exploration for, extraction of, proc- energy resource agreement submitted by an determines are necessary to carry out this essing of, or other development of the Indian Indian tribe under paragraph (1), or not later subsection. tribe’s energy mineral resources located on than 60 days after the Secretary receives a ‘‘(5) There are authorized to be appro- tribal land; and revised tribal energy resource agreement priated such sums as are necessary to carry ‘‘(B) construction or operation of an elec- submitted by an Indian tribe under para- out this subsection, to remain available tric generation, transmission, or distribution graph (4)(C), (or such later date as may be until expended. facility located on tribal land or a facility to agreed to by the Secretary and the Indian ‘‘(6) Not later than 1 year from the date of process or refine energy resources developed tribe), the Secretary shall approve or dis- enactment of this section, the Secretary of on tribal land; and approve the tribal energy resource agree- Energy shall report to Congress on the fi- ‘‘(2) such lease or business agreement de- ment. nancing requirements of Indian tribes for en- scribed in paragraph (1) shall not require the ‘‘(B) The Secretary shall approve a tribal ergy development on Indian land. approval of the Secretary under section 2103 energy resource agreement submitted under ‘‘(d) FEDERAL AGENCIES-INDIAN ENERGY of the Revised Statutes (25 U.S.C. 81) or any paragraph (1) if— PREFERENCE.— other provision of law, if— ‘‘(i) the Secretary determines that the In- ‘‘(1) In purchasing electricity or any other ‘‘(A) the lease or business agreement is ex- dian tribe has demonstrated that the Indian energy product or by-product, a Federal ecuted pursuant to a tribal energy resource tribe has sufficient capacity to regulate the agency or department may give preference agreement approved by the Secretary under development of energy resources of the In- to an energy and resource production enter- subsection (e); dian tribe; prise, partnership, consortium, corporation, ‘‘(B) the term of the lease or business ‘‘(ii) the tribal energy resource agreement or other type of business organization the agreement does not exceed— includes provisions required under subpara- majority of the interest in which is owned ‘‘(i) 30 years; or graph (D); and and controlled by 1 or more Indian tribes. ‘‘(ii) in the case of a lease for the produc- ‘‘(iii) the tribal energy resource agreement ‘‘(2) In carrying out this subsection, a Fed- tion of oil resources, gas resources, or both, includes provisions that, with respect to a eral agency or department shall not— 10 years and as long thereafter as oil or gas lease, business agreement, or right-of-way ‘‘(A) pay more than the prevailing market is produced in paying quantities; and under this section— price for an energy product or by-product; or ‘‘(C) the Indian tribe has entered into a ‘‘(I) ensure the acquisition of necessary in- ‘‘(B) obtain less than prevailing market tribal energy resource agreement with the formation from the applicant for the lease, terms and conditions. Secretary, as described in subsection (e), re- business agreement, or right-of-way; ‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE lating to the development of energy re- ‘‘(II) address the term of the lease or busi- REGULATION. sources on tribal land (including the periodic ness agreement or the term of conveyance of ‘‘(a) GRANTS.—The Secretary may provide review and evaluation of the activities of the the right-of-way; to Indian tribes, on an annual basis, grants Indian tribe under the agreement, to be con- ‘‘(III) address amendments and renewals; for use in accordance with subsection (b). ducted pursuant to the provisions required ‘‘(IV) address the economic return to the ‘‘(b) USE OF FUNDS.—Funds from a grant by subsection (e)(2)(D)(i)). Indian tribe under leases, business agree- provided under this section may be used— ‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ments, and rights-of-way; ‘‘(1) by an Indian tribe for the development ELECTRIC TRANSMISSION OR DISTRIBUTION ‘‘(V) address technical or other relevant re- of a tribal energy resource inventory or trib- LINES.—An Indian tribe may grant a right- quirements; al energy resource on Indian land; of-way over tribal land for a pipeline or an ‘‘(VI) establish requirements for environ- ‘‘(2) by an Indian tribe for the development electric transmission or distribution line mental review in accordance with subpara- of a feasibility study or other report nec- without approval by the Secretary if— graph (C); essary to the development of energy re- ‘‘(1) the right-of-way is executed in accord- ‘‘(VII) ensure compliance with all applica- sources on Indian land; ance with a tribal energy resource agree- ble environmental laws; ‘‘(3) by an Indian tribe (other than an In- ment approved by the Secretary under sub- ‘‘(VIII) identify final approval authority; dian Tribe in Alaska except the Metlakatla section (e); ‘‘(IX) provide for public notification of Indian Community) for the development and ‘‘(2) the term of the right-of-way does not final approvals; enforcement of tribal laws (including regula- exceed 30 years; ‘‘(X) establish a process for consultation tions) relating to tribal energy resource de- ‘‘(3) the pipeline or electric transmission with any affected States concerning off-res- velopment and the development of technical or distribution line serves— ervation impacts, if any, identified pursuant infrastructure to protect the environment ‘‘(A) an electric generation, transmission, to the provisions required under subpara- under applicable law; or distribution facility located on tribal graph (C)(i); ‘‘(4) by a Native Corporation for the devel- land; or ‘‘(XI) describe the remedies for breach of opment and implementation of corporate ‘‘(B) a facility located on tribal land that the lease, business agreement, or right-of- policies and the development of technical in- processes or refines energy resources devel- way; frastructure related to energy development oped on tribal land; and ‘‘(XII) require each lease, business agree- and environmental protection under applica- ‘‘(4) the Indian tribe has entered into a ment, and right-of-way to include a state- ble law; and tribal energy resource agreement with the ment that, in the event that any of its provi- ‘‘(5) by an Indian tribe for the training of Secretary, as described in subsection (e), re- sions violates an express term or require- employees that— lating to the development of energy re- ment set forth in the tribal energy resource ‘‘(A) are engaged in the development of en- sources on tribal land (including the periodic agreement pursuant to which it was exe- ergy resources on Indian land; or review and evaluation of the Indian tribe’s cuted—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00080 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2233 ‘‘(aa) such provision shall be null and void; retary shall, not later than 10 days after the ‘‘(7)(A) In this paragraph, the term ‘inter- and date of disapproval— ested party’ means any person or entity the ‘‘(bb) if the Secretary determines such pro- ‘‘(A) notify the Indian tribe in writing of interests of which have sustained or will sus- vision to be material, the Secretary shall the basis for the disapproval; tain a significant adverse environmental im- have the authority to suspend or rescind the ‘‘(B) identify what changes or other ac- pact as a result of the failure of an Indian lease, business agreement, or right-of-way or tions are required to address the concerns of tribe to comply with a tribal energy resource take other appropriate action that the Sec- the Secretary; and agreement of the Indian tribe approved by retary determines to be in the best interest ‘‘(C) provide the Indian tribe with an op- the Secretary under paragraph (2). of the Indian tribe; portunity to revise and resubmit the tribal ‘‘(B) After exhaustion of tribal remedies, ‘‘(XIII) require each lease, business agree- energy resource agreement. and in accordance with the process and re- ment, and right-of-way to provide that it ‘‘(5) If an Indian tribe executes a lease or quirements set forth in regulations adopted will become effective on the date on which a business agreement or grants a right-of-way by the Secretary pursuant to paragraph (8), copy of the executed lease, business agree- in accordance with a tribal energy resource an interested party may submit to the Sec- ment, or right-of-way is delivered to the Sec- agreement approved under this subsection, retary a petition to review compliance of an retary in accordance with regulations adopt- the Indian tribe shall, in accordance with the Indian tribe with a tribal energy resource ed pursuant to this subsection; and process and requirements set forth in the agreement of the Indian tribe approved by ‘‘(XIV) include citations to tribal laws, Secretary’s regulations adopted pursuant to the Secretary under paragraph (2). regulations, or procedures, if any, that set paragraph (8), provide to the Secretary— ‘‘(C)(i) Not later than 120 days after the out tribal remedies that must be exhausted ‘‘(A) a copy of the lease, business agree- date on which the Secretary receives a peti- before a petition may be submitted to the ment, or right-of-way document (including tion under subparagraph (B), the Secretary Secretary pursuant to paragraph (7)(B). all amendments to and renewals of the docu- shall determine whether the Indian tribe is ‘‘(C) Tribal energy resource agreements ment); and not in compliance with the tribal energy re- submitted under paragraph (1) shall estab- ‘‘(B) in the case of a tribal energy resource source agreement, as alleged in the petition. lish, and include provisions to ensure com- agreement or a lease, business agreement, or ‘‘(ii) The Secretary may adopt procedures pliance with, an environmental review proc- right-of-way that permits payments to be under paragraph (8) authorizing an extension ess that, with respect to a lease, business made directly to the Indian tribe, informa- of time, not to exceed 120 days, for making agreement, or right-of-way under this sec- tion and documentation of those payments the determination under clause (i) in any tion, provides for— sufficient to enable the Secretary to dis- case in which the Secretary determines that ‘‘(i) the identification and evaluation of all charge the trust responsibility of the United additional time is necessary to evaluate the significant environmental impacts (as com- States to enforce the terms of, and protect allegations of the petition. pared with a no-action alternative), includ- the Indian tribe’s rights under, the lease, ‘‘(iii) Subject to subparagraph (D), if the ing effects on cultural resources; business agreement, or right-of-way. Secretary determines that the Indian tribe is ‘‘(ii) the identification of proposed mitiga- ‘‘(6)(A) For purposes of the activities to be not in compliance with the tribal energy re- tion; undertaken by the Secretary pursuant to source agreement as alleged in the petition, ‘‘(iii) a process for ensuring that the public this section, the Secretary shall— the Secretary shall take such action as is is informed of and has an opportunity to ‘‘(i) carry out such activities in a manner necessary to ensure compliance with the pro- comment on the environmental impacts of consistent with the trust responsibility of visions of the tribal energy resource agree- the proposed action before tribal approval of the United States relating to mineral and ment, which action may include— the lease, business agreement, or right-of- other trust resources; and ‘‘(I) temporarily suspending some or all ac- way; and ‘‘(ii) act in good faith and in the best inter- tivities under a lease, business agreement, or ‘‘(iv) sufficient administrative support and ests of the Indian tribes. right-of-way under this section until the In- technical capability to carry out the envi- ‘‘(B) Subject to the provisions of sub- dian tribe or such activities are in compli- ronmental review process. sections (a)(2), (b), and (c) waiving the re- ance with the provisions of the approved ‘‘(D) A tribal energy resource agreement quirement of Secretarial approval of leases, tribal energy resource agreement; or negotiated between the Secretary and an In- business agreements, and rights-of-way exe- ‘‘(II) rescinding approval of all or part of dian tribe in accordance with this subsection cuted pursuant to tribal energy resource the tribal energy resource agreement, and if shall include— agreements approved under this section, and all of such agreement is rescinded, re- ‘‘(i) provisions requiring the Secretary to the provisions of subparagraph (D), nothing assuming the responsibility for approval of conduct a periodic review and evaluation to in this section shall absolve the United any future leases, business agreements, or monitor the performance of the Indian States from any responsibility to Indians or rights-of-way described in subsections (a) tribe’s activities associated with the devel- Indian tribes, including, but not limited to, and (b). opment of energy resources under the tribal those which derive from the trust relation- ‘‘(D) Prior to seeking to ensure compliance energy resource agreement; and ship or from any treaties, statutes, and other with the provisions of the tribal energy re- ‘‘(ii) when such review and evaluation re- laws of the United States, Executive Orders, source agreement of an Indian tribe under sult in a finding by the Secretary of immi- or agreements between the United States subparagraph (C)(iii), the Secretary shall— nent jeopardy to a physical trust asset aris- and any Indian tribe. ‘‘(i) make a written determination that de- ing from a violation of the tribal energy re- ‘‘(C) The Secretary shall continue to have scribes the manner in which the tribal en- source agreement or applicable Federal laws, a trust obligation to ensure that the rights ergy resource agreement has been violated; provisions authorizing the Secretary to take and interests of an Indian tribe are protected ‘‘(ii) provide the Indian tribe with a writ- appropriate actions determined by the Sec- in the event that— ten notice of the violations together with retary to be necessary to protect such asset, ‘‘(i) any other party to any such lease, the written determination; and which actions may include reassumption of business agreement, or right-of-way violates ‘‘(iii) before taking any action described in responsibility for activities associated with any applicable provision of Federal law or subparagraph (C)(iii) or seeking any other the development of energy resources on trib- the terms of any lease, business agreement, remedy, provide the Indian tribe with a hear- al land until the violation and conditions or right-of-way under this section; or ing and a reasonable opportunity to attain that gave rise to such jeopardy have been ‘‘(ii) any provision in such lease, business compliance with the tribal energy resource corrected. agreement, or right-of-way violates any ex- agreement. ‘‘(E) The periodic review and evaluation press provision or requirement set forth in ‘‘(E) An Indian tribe described in subpara- described in subparagraph (D) shall be con- the tribal energy resource agreement pursu- graph (D) shall retain all rights to appeal as ducted on an annual basis, except that, after ant to which the lease, business agreement, provided in regulations issued by the Sec- the third such annual review and evaluation, or right-of-way was executed. retary. the Secretary and the Indian tribe may mu- ‘‘(D) Notwithstanding subparagraph (B), ‘‘(8) Not later than 1 year after the date of tually agree to amend the tribal energy re- the United States shall not be liable to any enactment of the Indian Tribal Energy De- source agreement to authorize the review party (including any Indian tribe) for any of velopment and Self-Determination Act of and evaluation required by subparagraph (D) the negotiated terms of, or any losses result- 2005, the Secretary shall issue regulations to be conducted once every 2 years. ing from the negotiated terms of, a lease, that implement the provisions of this sub- ‘‘(3) The Secretary shall provide notice and business agreement, or right-of-way exe- section, including— opportunity for public comment on tribal en- cuted pursuant to and in accordance with a ‘‘(A) criteria to be used in determining the ergy resource agreements submitted for ap- tribal energy resource agreement approved capacity of an Indian tribe described in para- proval under paragraph (1). The Secretary’s by the Secretary under paragraph (2). For graph (2)(B)(i), including the experience of review of a tribal energy resource agreement the purpose of this subparagraph, the term the Indian tribe in managing natural re- under the National Environmental Policy ‘negotiated terms’ means any terms or provi- sources and financial and administrative re- Act of 1969 (42 U.S.C. 4321 et seq.) shall be sions that are negotiated by an Indian tribe sources available for use by the Indian tribe limited to the direct effects of that approval. and any other party or parties to a lease, in implementing the approved tribal energy ‘‘(4) If the Secretary disapproves a tribal business agreement, or right-of-way entered resource agreement of the Indian tribe; energy resource agreement submitted by an into pursuant to an approved tribal energy ‘‘(B) a process and requirements in accord- Indian tribe under paragraph (1), the Sec- resource agreement. ance with which an Indian tribe may—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00081 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 H2234 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(i) voluntarily rescind a tribal energy re- ‘‘(1) each Administrator shall consider the ceive grants and other assistance as author- source agreement approved by the Secretary unique relationship that exists between the ized by section 217 of the Department of En- under this subsection; and United States and Indian tribes; ergy Organization Act, as added by section ‘‘(ii) return to the Secretary the responsi- ‘‘(2) power allocations from the Western 502 of this title, and section 2602 of the En- bility to approve any future leases, business Area Power Administration to Indian tribes ergy Policy Act of 1992, as amended by this agreements, and rights-of-way described in may be used to meet firming and reserve title, for activities associated with the devel- this subsection; needs of Indian-owned energy projects on In- opment of a transmission line from the Four ‘‘(C) provisions setting forth the scope of, dian land; Corners Area to southern Nevada, including and procedures for, the periodic review and ‘‘(3) the Administrator of the Western Area related power generation opportunities. evaluation described in subparagraphs (D) Power Administration may purchase non- TITLE VI—NUCLEAR MATTERS and (E) of paragraph (2), including provisions federally generated power from Indian tribes Subtitle A—Price-Anderson Act Amendments for review of transactions, reports, site in- to meet the firming and reserve require- spections, and any other review activities ments of the Western Area Power Adminis- SEC. 601. SHORT TITLE. This subtitle may be cited as the ‘‘Price- the Secretary determines to be appropriate; tration; and Anderson Amendments Act of 2005’’ . and ‘‘(4) each Administrator shall not pay more ‘‘(D) provisions defining final agency ac- than the prevailing market price for an en- SEC. 602. EXTENSION OF INDEMNIFICATION AU- THORITY. tions after exhaustion of administrative ap- ergy product nor obtain less than prevailing (a) INDEMNIFICATION OF NUCLEAR REGU- peals from determinations of the Secretary market terms and conditions. LATORY COMMISSION LICENSEES.—Section 170 under paragraph (7). ‘‘(d) ASSISTANCE FOR TRANSMISSION SYSTEM c. of the Atomic Energy Act of 1954 (42 U.S.C. ‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in USE.—(1) An Administrator may provide 2210(c)) is amended— this section affects the application of— technical assistance to Indian tribes seeking (1) in the subsection heading, by striking ‘‘(1) any Federal environment law; to use the high-voltage transmission system ‘‘LICENSES’’ and inserting ‘‘LICENSEES’’; and ‘‘(2) the Surface Mining Control and Rec- for delivery of electric power. (2) by striking ‘‘December 31, 2003’’ each lamation Act of 1977 (30 U.S.C. 1201 et seq.); ‘‘(2) The costs of technical assistance pro- place it appears and inserting ‘‘December 31, or vided under paragraph (1) shall be funded by 2025’’. ‘‘(3) except as otherwise provided in this the Secretary of Energy using nonreimburs- (b) INDEMNIFICATION OF DEPARTMENT OF EN- title, the Indian Mineral Development Act of able funds appropriated for that purpose, or ERGY CONTRACTORS.—Section 170 d.(1)(A) of 1982 (25 U.S.C. 2101 et seq.) and the National by the applicable Indian tribes. the Atomic Energy Act of 1954 (42 U.S.C. Environmental Policy Act of 1969 (42 U.S.C. ‘‘(e) POWER ALLOCATION STUDY.—Not later 2210(d)(1)(A)) is amended by striking ‘‘De- 4321 et seq.). than 2 years after the date of enactment of cember 31, 2006’’ and inserting ‘‘December 31, ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— the Indian Tribal Energy Development and 2025’’. There are authorized to be appropriated to Self-Determination Act of 2005, the Sec- (c) INDEMNIFICATION OF NONPROFIT EDU- the Secretary such sums as are necessary for retary of Energy shall submit to Congress a CATIONAL INSTITUTIONS.—Section 170 k. of the each of fiscal years 2006 through 2016 to im- report that— plement the provisions of this section and to Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) ‘‘(1) describes the use by Indian tribes of is amended by striking ‘‘August 1, 2002’’ each make grants or provide other appropriate as- Federal power allocations of the Western sistance to Indian tribes to assist the Indian place it appears and inserting ‘‘December 31, Area Power Administration (or power sold 2025’’. tribes in developing and implementing tribal by the Southwestern Power Administration) SEC. 603. MAXIMUM ASSESSMENT. energy resource agreements in accordance and the Bonneville Power Administration to Section 170 of the Atomic Energy Act of with the provisions of this section. or for the benefit of Indian tribes in service 1954 (42 U.S.C. 2210) is amended— ‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT RE- areas of those administrations; and (1) in the second proviso of the third sen- VIEW. ‘‘(2) identifies— tence of subsection b.(1)— ‘‘(a) IN GENERAL.—The Secretary shall con- ‘‘(A) the quantity of power allocated to, or (A) by striking ‘‘$63,000,000’’ and inserting duct a review of all activities being con- used for the benefit of, Indian tribes by the ‘‘$95,800,000’’; and ducted under the Indian Mineral Develop- Western Area Power Administration; (B) by striking ‘‘$10,000,000 in any 1 year’’ ment Act of 1982 (25 U.S.C. 2101 et seq.) as of ‘‘(B) the quantity of power sold to Indian and inserting ‘‘$15,000,000 in any 1 year (sub- that date. tribes by other power marketing administra- ject to adjustment for inflation under sub- ‘‘(b) REPORT.—Not later than 1 year after tions; and section t.)’’; and the date of enactment of the Indian Tribal ‘‘(C) barriers that impede tribal access to (2) in subsection t.(1)— Energy Development and Self-Determination and use of Federal power, including an as- (A) by inserting ‘‘total and annual’’ after Act of 2005, the Secretary shall submit to sessment of opportunities to remove those ‘‘amount of the maximum’’; Congress a report that includes— barriers and improve the ability of power (B) by striking ‘‘the date of the enactment ‘‘(1) the results of the review; marketing administrations to deliver Fed- of the Price-Anderson Amendments Act of ‘‘(2) recommendations to ensure that In- eral power. dian tribes have the opportunity to develop 1988’’ and inserting ‘‘August 20, 2003’’; and ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— (C) in subparagraph (A), by striking ‘‘such Indian energy resources; and There are authorized to be appropriated to date of enactment’’ and inserting ‘‘August ‘‘(3) an analysis of the barriers to the de- carry out this section $750,000, which shall 20, 2003’’. velopment of energy resources on Indian remain available until expended and shall land (including legal, fiscal, market, and not be reimbursable.’’. SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT. other barriers), along with recommendations (b) CONFORMING AMENDMENT.—The table of (a) INDEMNIFICATION OF DEPARTMENT OF EN- for the removal of those barriers. contents for the Energy Policy Act of 1992 is ERGY CONTRACTORS.—Section 170 d. of the ‘‘SEC. 2606. FEDERAL POWER MARKETING ADMIN- amended by striking the items relating to Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) ISTRATIONS. title XXVI (other than the title heading) and is amended by striking paragraph (2) and in- ‘‘(a) DEFINITIONS.—In this section: inserting the following: ‘‘(1) The term ‘Administrator’ means the serting the following: Administrator of the Bonneville Power Ad- ‘‘Sec. 2601. Definitions. ‘‘(2) In an agreement of indemnification ministration and the Administrator of the ‘‘Sec. 2602. Indian tribal energy resource de- entered into under paragraph (1), the Sec- Western Area Power Administration. velopment. retary— ‘‘(2) The term ‘power marketing adminis- ‘‘Sec. 2603. Indian tribal energy resource ‘‘(A) may require the contractor to provide tration’ means— regulation. and maintain financial protection of such a ‘‘(A) the Bonneville Power Administration; ‘‘Sec. 2604. Leases, business agreements, and type and in such amounts as the Secretary ‘‘(B) the Western Area Power Administra- rights-of-way involving energy shall determine to be appropriate to cover tion; and development or transmission. public liability arising out of or in connec- ‘‘Sec. 2605. Indian mineral development re- ‘‘(C) any other power administration the tion with the contractual activity; and view. power allocation of which is used by or for ‘‘(B) shall indemnify the persons indem- ‘‘Sec. 2606. Federal Power Marketing Admin- the benefit of an Indian tribe located in the nified against such liability above the istrations.’’. service area of the administration. amount of the financial protection required, ‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL EN- SEC. 504. CONSULTATION WITH INDIAN TRIBES. in the amount of $10,000,000,000 (subject to ERGY DEVELOPMENT.—Each Administrator In carrying out this title and the amend- adjustment for inflation under subsection t.), shall encourage Indian tribal energy develop- ments made by this title, the Secretary of in the aggregate, for all persons indemnified ment by taking such actions as are appro- Energy and the Secretary shall, as appro- in connection with the contract and for each priate, including administration of programs priate and to the maximum extent prac- nuclear incident, including such legal costs of the Bonneville Power Administration and ticable, involve and consult with Indian of the contractor as are approved by the Sec- the Western Area Power Administration, in tribes. retary.’’. accordance with this section. SEC. 505. FOUR CORNERS TRANSMISSION LINE (b) CONTRACT AMENDMENTS.—Section 170 d. ‘‘(c) ACTION BY THE ADMINISTRATOR.—In PROJECT. of the Atomic Energy Act of 1954 (42 U.S.C. carrying out this section, and in accordance The Dine Power Authority, an enterprise 2210(d)) is further amended by striking para- with existing law— of the Navajo Nation, shall be eligible to re- graph (3) and inserting the following—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00082 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.053 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2235 ‘‘(3) All agreements of indemnification enter into any contract or other arrange- contractor) under paragraph (1) may be reim- under which the Department of Energy (or ment, or into any amendment or modifica- bursed directly or indirectly by the Depart- its predecessor agencies) may be required to tion of a contract or other arrangement, the ment of Energy. indemnify any person under this section purpose or effect of which would be to di- ‘‘(4) Paragraph (1) shall not apply to any shall be deemed to be amended, on the date rectly or indirectly impose liability on the nonprofit entity conducting activities under of enactment of the Price-Anderson Amend- United States Government, or any depart- contract for the Secretary. ments Act of 2005, to reflect the amount of ment, agency, or instrumentality of the ‘‘(5) No waiver of a defense required under indemnity for public liability and any appli- United States Government, or to otherwise this section shall prevent a defendant from cable financial protection required of the directly or indirectly require an indemnity asserting such defense in an action brought contractor under this subsection.’’. by the United States Government, for nu- under this subsection. (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of clear incidents occurring in connection with ‘‘(6) The Secretary shall, by rule, define the Atomic Energy Act of 1954 (42 U.S.C. the design, construction, or operation of a the terms ‘profit’ and ‘nonprofit entity’ for 2210(e)(1)(B)) is amended— production facility or utilization facility in purposes of this subsection. Such rulemaking (1) by striking ‘‘the maximum amount of any country whose government has been shall be completed not later than 180 days financial protection required under sub- identified by the Secretary of State as en- after the date of the enactment of this sub- section b. or’’; and gaged in state sponsorship of terrorist activi- section.’’. (2) by striking ‘‘paragraph (3) of subsection ties (specifically including any country the (b) EFFECTIVE DATE.—The amendment d., whichever amount is more’’ and inserting government of which, as of September 11, made by this section shall not apply to any ‘‘paragraph (2) of subsection d.’’. 2001, had been determined by the Secretary agreement of indemnification entered into SEC. 605. INCIDENTS OUTSIDE THE UNITED of State under section 620A(a) of the Foreign under section 170 d. of the Atomic Energy STATES. Assistance Act of 1961 (22 U.S.C. 2371(a)), sec- Act of 1954 (42 U.S.C. 2210(d)) before the date (a) AMOUNT OF INDEMNIFICATION.—Section tion 6(j)(1) of the Export Administration Act of the enactment of this Act. 170 d.(5) of the Atomic Energy Act of 1954 (42 of 1979 (50 U.S.C. App. 2405(j)(1)), or section Subtitle B—General Nuclear Matters U.S.C. 2210(d)(5)) is amended by striking 40(d) of the Arms Export Control Act (22 SEC. 621. LICENSES. ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. U.S.C. 2780(d)) to have repeatedly provided Section 103 c. of the Atomic Energy Act of (b) LIABILITY LIMIT.—Section 170 e.(4) of support for acts of international terrorism). 1954 (42 U.S.C. 2133(c)) is amended by insert- the Atomic Energy Act of 1954 (42 U.S.C. This subsection shall not apply to nuclear ing ‘‘from the authorization to commence 2210(e)(4)) is amended by striking incidents occurring as a result of missions, operations’’ after ‘‘forty years’’. ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. carried out under the direction of the Sec- SEC. 622. NRC TRAINING PROGRAM. SEC. 606. REPORTS. retary of Energy, the Secretary of Defense, (a) IN GENERAL.—In order to maintain the Section 170 p. of the Atomic Energy Act of or the Secretary of State, that are necessary human resource investment and infrastruc- 1954 (42 U.S.C. 2210(p)) is amended by striking to safely secure, store, transport, or remove ture of the United States in the nuclear ‘‘August 1, 1998’’ and inserting ‘‘December 31, nuclear materials for nuclear safety or non- sciences, health physics, and engineering 2021’’. proliferation purposes.’’. fields, in accordance with the statutory au- SEC. 607. INFLATION ADJUSTMENT. SEC. 611. CIVIL PENALTIES. thorities of the Nuclear Regulatory Commis- Section 170 t. of the Atomic Energy Act of (a) REPEAL OF AUTOMATIC REMISSION.—Sec- sion relating to the civilian nuclear energy 1954 (42 U.S.C. 2210(t)) is amended— tion 234A b.(2) of the Atomic Energy Act of program, the Nuclear Regulatory Commis- (1) by redesignating paragraph (2) as para- 1954 (42 U.S.C. 2282a(b)(2)) is amended by sion shall carry out a training and fellowship graph (3); and striking the last sentence. program to address shortages of individuals (2) by inserting after paragraph (1) the fol- (b) LIMITATION FOR NOT-FOR-PROFIT INSTI- with critical nuclear safety regulatory lowing: TUTIONS.—Subsection d. of section 234A of skills. ‘‘(2) The Secretary shall adjust the amount the Atomic Energy Act of 1954 (42 U.S.C. (b) AUTHORIZATION OF APPROPRIATIONS.— of indemnification provided under an agree- 2282a(d)) is amended to read as follows: (1) IN GENERAL.—There are authorized to be ment of indemnification under subsection d. ‘‘d.(1) Notwithstanding subsection a., in appropriated to the Nuclear Regulatory not less than once during each 5-year period the case of any not-for-profit contractor, Commission to carry out this section following July 1, 2003, in accordance with the subcontractor, or supplier, the total amount $1,000,000 for each of fiscal years 2005 through aggregate percentage change in the Con- of civil penalties paid under subsection a. 2009. sumer Price Index since— may not exceed the total amount of fees paid (2) AVAILABILITY.—Funds made available ‘‘(A) that date, in the case of the first ad- within any 1-year period (as determined by under paragraph (1) shall remain available justment under this paragraph; or the Secretary) under the contract under until expended. ‘‘(B) the previous adjustment under this which the violation occurs. SEC. 623. COST RECOVERY FROM GOVERNMENT paragraph.’’. ‘‘(2) For purposes of this section, the term AGENCIES. SEC. 608. TREATMENT OF MODULAR REACTORS. ‘not-for-profit’ means that no part of the net Section 161 w. of the Atomic Energy Act of Section 170 b. of the Atomic Energy Act of earnings of the contractor, subcontractor, or 1954 (42 U.S.C. 2201(w)) is amended— 1954 (42 U.S.C. 2210(b)) is amended by adding supplier inures to the benefit of any natural (1) by striking ‘‘for or is issued’’ and all at the end the following: person or for-profit artificial person.’’. that follows through ‘‘1702’’ and inserting ‘‘(5)(A) For purposes of this section only, (c) EFFECTIVE DATE.—The amendments ‘‘to the Commission for, or is issued by the the Commission shall consider a combina- made by this section shall not apply to any Commission, a license or certificate’’; tion of facilities described in subparagraph violation of the Atomic Energy Act of 1954 (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; (B) to be a single facility having a rated ca- (42 U.S.C. 2011 et seq.) occurring under a con- and pacity of 100,000 electrical kilowatts or more. tract entered into before the date of enact- (3) by striking ‘‘, of applicants for, or hold- ‘‘(B) A combination of facilities referred to ment of this section. ers of, such licenses or certificates’’. in subparagraph (A) is 2 or more facilities lo- SEC. 612. FINANCIAL ACCOUNTABILITY. SEC. 624. ELIMINATION OF PENSION OFFSET. cated at a single site, each of which has a (a) AMENDMENT.—Section 170 of the Atomic Section 161 of the Atomic Energy Act of rated capacity of 100,000 electrical kilowatts Energy Act of 1954 (42 U.S.C. 2210) is amended 1954 (42 U.S.C. 2201) is amended by adding at or more but not more than 300,000 electrical by adding at the end the following new sub- the end the following: kilowatts, with a combined rated capacity of section: ‘‘y. Exempt from the application of sec- not more than 1,300,000 electrical kilo- ‘‘v. FINANCIAL ACCOUNTABILITY.—(1) Not- tions 8344 and 8468 of title 5, United States watts.’’. withstanding subsection d., the Attorney Code, an annuitant who was formerly an em- SEC. 609. APPLICABILITY. General may bring an action in the appro- ployee of the Commission who is hired by the The amendments made by sections 603, 604, priate United States district court to recover Commission as a consultant, if the Commis- and 605 do not apply to a nuclear incident from a contractor of the Secretary (or sub- sion finds that the annuitant has a skill that that occurs before the date of the enactment contractor or supplier of such contractor) is critical to the performance of the duties of of this Act. amounts paid by the Federal Government the Commission.’’. SEC. 610. PROHIBITION ON ASSUMPTION BY under an agreement of indemnification SEC. 625. ANTITRUST REVIEW. UNITED STATES GOVERNMENT OF under subsection d. for public liability re- Section 105 c. of the Atomic Energy Act of LIABILITY FOR CERTAIN FOREIGN sulting from conduct which constitutes in- 1954 (42 U.S.C. 2135(c)) is amended by adding INCIDENTS. tentional misconduct of any corporate offi- at the end the following: Section 170 of the Atomic Energy Act of cer, manager, or superintendent of such con- ‘‘(9) APPLICABILITY.—This subsection does 1954 (42 U.S.C. 2210) is amended by adding at tractor (or subcontractor or supplier of such not apply to an application for a license to the end the following new subsection: contractor). construct or operate a utilization facility or ‘‘u. PROHIBITION ON ASSUMPTION OF LIABIL- ‘‘(2) The Attorney General may recover production facility under section 103 or 104 b. ITY FOR CERTAIN FOREIGN INCIDENTS.—Not- under paragraph (1) an amount not to exceed that is filed on or after the date of enact- withstanding this section or any other provi- the amount of the profit derived by the de- ment of this paragraph.’’. sion of law, no officer of the United States or fendant from the contract. SEC. 626. DECOMMISSIONING. of any department, agency, or instrumen- ‘‘(3) No amount recovered from any con- Section 161 i. of the Atomic Energy Act of tality of the United States Government may tractor (or subcontractor or supplier of such 1954 (42 U.S.C. 2201(i)) is amended—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00083 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.054 H20PT1 H2236 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (1) by striking ‘‘and (3)’’ and inserting not be less than the fair market value of the the implementation of this section. The re- ‘‘(3)’’; and material; and port shall include a discussion of available (2) by inserting before the semicolon at the ‘‘(C) the sale or transfer to commercial nu- excess uranium inventories; all sales or end the following: ‘‘, and (4) to ensure that clear power end users is made pursuant to a transfers made by the United States Govern- sufficient funds will be available for the de- contract of at least 3 years’ duration. ment; the impact of such sales or transfers commissioning of any production or utiliza- ‘‘(3) Except as provided in paragraph (5), on the domestic uranium industry, the spot tion facility licensed under section 103 or 104 the United States Government shall not market uranium price, and the national se- b., including standards and restrictions gov- make any transfer or sale of uranium in any curity interests of the United States; and erning the control, maintenance, use, and form under this subsection that would cause any steps taken to remediate any adverse disbursement by any former licensee under the total amount of uranium transferred or impacts of such sales or transfers. this Act that has control over any fund for sold pursuant to this subsection that is de- SEC. 631. COOPERATIVE RESEARCH AND DEVEL- the decommissioning of the facility’’. livered for consumption by commercial nu- OPMENT AND SPECIAL DEMONSTRA- SEC. 627. LIMITATION ON LEGAL FEE REIM- clear power end users to exceed— TION PROJECTS FOR THE URANIUM BURSEMENT. ‘‘(A) 3,000,000 pounds of U3 O8 equivalent in MINING INDUSTRY. Title II of the Energy Reorganization Act fiscal year 2005, 2006, 2007, 2008, or 2009; (a) AUTHORIZATION OF APPROPRIATIONS.— of 1974 (42 U.S.C. 5841 et seq.) is amended by ‘‘(B) 5,000,000 pounds of U3O8 equivalent in There are authorized to be appropriated to adding at the end the following new section: fiscal year 2010 or 2011; the Secretary of Energy $10,000,000 for each ‘‘LIMITATION ON LEGAL FEE REIMBURSEMENT ‘‘(C) 7,000,000 pounds of U3O8 equivalent in of fiscal years 2006, 2007, and 2008 for— fiscal year 2012; and (1) cooperative, cost-shared agreements be- ‘‘SEC. 212. The Department of Energy shall ‘‘(D) 10,000,000 pounds of U O equivalent in tween the Department of Energy and domes- not, except as required under a contract en- 3 8 fiscal year 2013 or any fiscal year thereafter. tic uranium producers to identify, test, and tered into before the date of enactment of ‘‘(4) Except for sales or transfers under develop improved in situ leaching mining this section, reimburse any contractor or paragraph (5), for the purposes of this sub- technologies, including low-cost environ- subcontractor of the Department for any section, the recovery of uranium from ura- mental restoration technologies that may be legal fees or expenses incurred with respect nium bearing materials transferred or sold applied to sites after completion of in situ to a complaint subsequent to— by the United States Government to the do- leaching operations; and ‘‘(1) an adverse determination on the mer- mestic uranium industry shall be the pre- (2) funding for competitively selected dem- its with respect to such complaint against ferred method of making uranium available. onstration projects with domestic uranium the contractor or subcontractor by the Di- The recovered uranium shall be counted producers relating to— rector of the Department of Energy’s Office against the annual maximum deliveries set (A) enhanced production with minimal en- of Hearings and Appeals pursuant to part 708 forth in this section, when such uranium is vironmental impacts; of title 10, Code of Federal Regulations, or by sold to end users. (B) restoration of well fields; and a Department of Labor Administrative Law ‘‘(5) The United States Government may (C) decommissioning and decontamination Judge pursuant to section 211 of this Act; or make the following sales and transfers: activities. ‘‘(2) an adverse final judgment by any ‘‘(A) Sales or transfers to a Federal agency (b) DOMESTIC URANIUM PRODUCER.—For State or Federal court with respect to such if the material is transferred for the use of purposes of this section, the term ‘‘domestic complaint against the contractor or subcon- the receiving agency without any resale or uranium producer’’ has the meaning given tractor for wrongful termination or retalia- transfer to another entity and the material that term in section 1018(4) of the Energy tion due to the making of disclosures pro- does not meet commercial specifications. Policy Act of 1992 (42 U.S.C. 2296b–7(4)), ex- tected under chapter 12 of title 5, United ‘‘(B) Sales or transfers to any person for cept that the term shall not include any pro- States Code, section 211 of this Act, or any national security purposes, as determined by ducer that has not produced uranium from comparable State law, the Secretary. domestic reserves on or after July 30, 1998. unless the adverse determination or final ‘‘(C) Sales or transfers to any State or (c) LIMITATION.—No activities funded under judgment is reversed upon further adminis- local agency or nonprofit, charitable, or edu- this section may be carried out in the State trative or judicial review.’’. cational institution for use other than the of New Mexico. SEC. 629. REPORT ON FEASIBILITY OF DEVEL- generation of electricity for commercial use. SEC. 632. WHISTLEBLOWER PROTECTION. OPING COMMERCIAL NUCLEAR EN- ‘‘(D) Sales or transfers to the Department (a) DEFINITION OF EMPLOYER.—Section ERGY GENERATION FACILITIES AT of Energy research reactor sales program. 211(a)(2) of the Energy Reorganization Act of EXISTING DEPARTMENT OF ENERGY ‘‘(E) Sales or transfers, at fair market SITES. 1974 (42 U.S.C. 5851(a)(2)) is amended— value, for emergency purposes in the event of (1) in subparagraph (C), by striking ‘‘and’’ Not later than 1 year after the date of the a disruption in supply to commercial nuclear enactment of this Act, the Secretary of En- at the end; power end users in the United States. (2) in subparagraph (D), by striking the pe- ergy shall submit to Congress a report on the ‘‘(F) Sales or transfers, at fair market feasibility of developing commercial nuclear riod at the end and inserting ‘‘; and’’ and value, for use in a commercial reactor in the (3) by adding at the end the following: energy generation facilities at Department United States with nonstandard fuel require- of Energy sites in existence on the date of ‘‘(E) a contractor or subcontractor of the ments. Commission.’’. enactment of this Act. ‘‘(G) Sales or transfers provided for under (b) DE NOVO REVIEW.—Subsection (b) of SEC. 630. URANIUM SALES. law for use by the Tennessee Valley Author- (a) SALES, TRANSFERS, AND SERVICES.—Sec- such section 211 is amended by adding at the ity in relation to the Department of Ener- end the following new paragraph: tion 3112 of the USEC Privatization Act (42 gy’s highly enriched uranium or tritium pro- U.S.C. 2297h–10) is amended by striking sub- ‘‘(4) If the Secretary has not issued a final grams. decision within 540 days after the filing of a sections (d), (e), and (f) and inserting the fol- ‘‘(6) For purposes of this subsection, the complaint under paragraph (1), and there is lowing: term ‘United States Government’ does not no showing that such delay is due to the bad ‘‘(3) The Secretary may transfer to the include the Tennessee Valley Authority. faith of the person seeking relief under this Corporation, notwithstanding subsections ‘‘(e) SAVINGS PROVISION.—Nothing in this (b)(2) and (d), natural uranium in amounts subchapter modifies the terms of the Russian paragraph, such person may bring an action sufficient to fulfill the Department of Ener- HEU Agreement. at law or equity for de novo review in the ap- gy’s commitments under Article 4(B) of the ‘‘(f) SERVICES.—Notwithstanding any other propriate district court of the United States, Agreement between the Department and the provision of this section, if the Secretary de- which shall have jurisdiction over such an Corporation dated June 17, 2002. termines that the Corporation has failed, or action without regard to the amount in con- ‘‘(d) INVENTORY SALES.—(1) In addition to may fail, to perform any obligation under troversy.’’. the transfers and sales authorized under sub- the Agreement between the Department of SEC. 633. MEDICAL ISOTOPE PRODUCTION. sections (b) and (c) and under paragraph (5) Energy and the Corporation dated June 17, Section 134 of the Atomic Energy Act of of this subsection, the United States Govern- 2002, and as amended thereafter, which fail- 1954 (42 U.S.C. 2160d) is amended— ment may transfer or sell uranium in any ure could result in termination of the Agree- (1) in subsection a., by striking ‘‘a. The form subject to paragraphs (2), (3), and (4). ment, the Secretary shall notify Congress, in Commission’’ and inserting ‘‘a. IN GEN- ‘‘(2) Except as provided in subsections (b) such a manner that affords Congress an op- ERAL.—Except as provided in subsection b., and (c) and paragraph (5) of this subsection, portunity to comment, prior to a determina- the Commission’’; no sale or transfer of uranium shall be made tion by the Secretary whether termination, (2) by redesignating subsection b. as sub- under this subsection by the United States waiver, or modification of the Agreement is section c.; and Government unless— required. The Secretary is authorized to take (3) by inserting after subsection a. the fol- ‘‘(A) the President determines that the ma- such action as he determines necessary lowing: terial is not necessary for national security under the Agreement to terminate, waive, or ‘‘b. MEDICAL ISOTOPE PRODUCTION.— needs and the sale or transfer has no adverse modify provisions of the Agreement to ‘‘(1) DEFINITIONS.—In this subsection: impact on implementation of existing gov- achieve its purposes.’’. ‘‘(A) HIGHLY ENRICHED URANIUM.—The term ernment-to-government agreements; (b) REPORT.—Not later than 3 years after ‘highly enriched uranium’ means uranium ‘‘(B) the price paid to the appropriate Fed- the date of enactment of this Act, the Sec- enriched to include concentration of U–235 eral agency, if the transaction is a sale, will retary of Energy shall report to Congress on above 20 percent.

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‘‘(B) MEDICAL ISOTOPE.—The term ‘medical do not involve fuels and targets with highly risdiction of the Department until it is re- isotope’ includes Molybdenum 99, Iodine 131, enriched uranium. ceived at a commercial, Commission-li- Xenon 133, and other radioactive materials ‘‘(B) FEASIBILITY.—For the purpose of this censed, or Agreement State-licensed facility, used to produce a radiopharmaceutical for subsection, the use of low enriched uranium at which time the material shall be subject diagnostic, therapeutic procedures or for re- to produce medical isotopes shall be deter- to the health and safety requirements of the search and development. mined to be feasible if— Commission or the Agreement State with ju- ‘‘(C) RADIOPHARMACEUTICAL.—The term ‘‘(i) low enriched uranium targets have risdiction over the disposal site.’’. ‘radiopharmaceutical’ means a radioactive been developed and demonstrated for use in SEC. 635. SAFE DISPOSAL OF GREATER-THAN- isotope that— the reactors and target processing facilities CLASS C RADIOACTIVE WASTE. ‘‘(i) contains byproduct material combined that produce significant quantities of med- Subtitle D of title I of the Nuclear Waste with chemical or biological material; and ical isotopes to serve United States needs for Policy Act of 1982 (42 U.S.C. 10171) is amend- ‘‘(ii) is designed to accumulate temporarily such isotopes; ed by adding at the end the following new in a part of the body for therapeutic pur- ‘‘(ii) sufficient quantities of medical iso- section: poses or for enabling the production of a use- topes are available from low enriched ura- ‘‘SAFE DISPOSAL OF GREATER-THAN-CLASS C ful image for use in a diagnosis of a medical nium targets and fuel to meet United States RADIOACTIVE WASTE condition. domestic needs; and ‘‘SEC. 152. (a) DESIGNATION OF RESPONSI- ‘‘(D) RECIPIENT COUNTRY.—The term ‘re- ‘‘(iii) the average anticipated total cost in- BILITY.—The Secretary shall designate an Of- cipient country’ means Canada, Belgium, crease from production of medical isotopes fice within the Department to have the re- France, Germany, and the Netherlands. in such facilities without use of highly en- sponsibility for activities needed to develop ‘‘(2) LICENSES.—The Commission may issue riched uranium is less than 10 percent. a new, or use an existing, facility for safely a license authorizing the export (including ‘‘(C) REPORT BY THE SECRETARY.—Not later disposing of all low-level radioactive waste shipment to and use at intermediate and ul- than 5 years after the date of enactment of with concentrations of radionuclides that ex- timate consignees specified in the license) to the Energy Policy Act of 2005, the Secretary ceed the limits established by the Commis- a recipient country of highly enriched ura- shall submit to Congress a report that— sion for Class C radioactive waste (referred nium for medical isotope production if, in ‘‘(i) contains the findings of the National to in this section as ‘GTCC waste’). addition to any other requirements of this Academy of Sciences made in the study ‘‘(b) COMPREHENSIVE PLAN.—The Secretary Act (except subsection a.), the Commission under subparagraph (A); and shall develop a comprehensive plan for per- determines that— ‘‘(ii) discloses the existence of any commit- manent disposal of GTCC waste which in- ‘‘(A) a recipient country that supplies an ments from commercial producers to provide cludes plans for a disposal facility. This plan shall be transmitted to Congress in a series assurance letter to the United States Gov- domestic requirements for medical isotopes of reports, including the following: ernment in connection with the consider- without use of highly enriched uranium con- ‘‘(1) REPORT ON SHORT-TERM PLAN.—Not ation by the Commission of the export li- sistent with the feasibility criteria described later than 180 days after the date of enact- cense application has informed the United in subparagraph (B) not later than the date ment of this section, the Secretary shall sub- States Government that any intermediate that is 4 years after the date of submission of mit to Congress a plan describing the Sec- consignees and the ultimate consignee speci- the report. fied in the application are required to use retary’s operational strategy for continued ‘‘(5) SECOND REPORT TO CONGRESS.—If the the highly enriched uranium solely to recovery and storage of GTCC waste until a study of the National Academy of Sciences produce medical isotopes; and permanent disposal facility is available. determines under paragraph (4)(A)(i) that the ‘‘(B) the highly enriched uranium for med- ‘‘(2) UPDATE OF 1987 REPORT.— procurement of supplies of medical isotopes ical isotope production will be irradiated ‘‘(A) IN GENERAL.—Not later than 1 year from commercial sources that do not use only in a reactor in a recipient country after the date of enactment of this section, highly enriched uranium is feasible, but the that— the Secretary shall submit to Congress an Secretary is unable to report the existence of ‘‘(i) uses an alternative nuclear reactor update of the Secretary’s February 1987 re- commitments under paragraph (4)(C)(ii), not fuel; or port submitted to Congress that made com- later than the date that is 6 years after the ‘‘(ii) is the subject of an agreement with prehensive recommendations for the disposal date of enactment of the Energy Policy Act the United States Government to convert to of GTCC waste. of 2005, the Secretary shall submit to Con- an alternative nuclear reactor fuel when al- ‘‘(B) CONTENTS.—The update under this gress a report that describes options for de- ternative nuclear reactor fuel can be used in paragraph shall contain— veloping domestic supplies of medical iso- the reactor. ‘‘(i) a detailed description and identifica- topes in quantities that are adequate to ‘‘(3) REVIEW OF PHYSICAL PROTECTION RE- tion of the GTCC waste that is to be dis- meet domestic demand without the use of QUIREMENTS.— posed; highly enriched uranium consistent with the ‘‘(A) IN GENERAL.—The Commission shall ‘‘(ii) a description of current domestic and cost increase described in paragraph review the adequacy of physical protection international programs, both Federal and (4)(B)(iii). requirements that, as of the date of an appli- commercial, for management and disposition ‘‘(6) CERTIFICATION.—At such time as com- cation under paragraph (2), are applicable to of GTCC waste; mercial facilities that do not use highly en- the transportation and storage of highly en- ‘‘(iii) an identification of the Federal and riched uranium are capable of meeting do- riched uranium for medical isotope produc- private options and costs for the safe dis- mestic requirements for medical isotopes, tion or control of residual material after ir- posal of GTCC waste; within the cost increase described in para- radiation and extraction of medical isotopes. ‘‘(iv) an identification of the options for graph (4)(B)(iii) and without impairing the ‘‘(B) IMPOSITION OF ADDITIONAL REQUIRE- ensuring that, wherever possible, generators reliable supply of medical isotopes for do- MENTS.—If the Commission determines that and users of GTCC waste bear all reasonable mestic utilization, the Secretary shall sub- additional physical protection requirements costs of waste disposal; mit to Congress a certification to that effect. are necessary (including a limit on the quan- ‘‘(v) an identification of any new statutory ‘‘(7) SUNSET PROVISION.—After the Sec- tity of highly enriched uranium that may be authority required for disposal of GTCC retary submits a certification under para- contained in a single shipment), the Com- waste; and graph (6), the Commission shall, by rule, ter- mission shall impose such requirements as ‘‘(vi) in coordination with the Environ- minate its review of export license applica- license conditions or through other appro- mental Protection Agency and the Commis- tions under this subsection.’’. priate means. sion, an identification of any new regulatory ‘‘(4) FIRST REPORT TO CONGRESS.— SEC. 634. FERNALD BYPRODUCT MATERIAL. guidance needed for the disposal of GTCC Title III of the Nuclear Waste Policy Act of ‘‘(A) NAS STUDY.—The Secretary shall waste. 1982 (42 U.S.C. 10221 et seq.) is amended by enter into an arrangement with the National ‘‘(3) REPORT ON COST AND SCHEDULE FOR adding at the end the following new section: Academy of Sciences to conduct a study to COMPLETION OF ENVIRONMENTAL IMPACT determine— ‘‘FERNALD BYPRODUCT MATERIAL STATEMENT AND RECORD OF DECISION.—Not ‘‘(i) the feasibility of procuring supplies of ‘‘SEC. 307. Notwithstanding any other law, later than 180 days after the date of submis- medical isotopes from commercial sources the material in the concrete silos at the sion of the update required under paragraph that do not use highly enriched uranium; Fernald uranium processing facility man- (2), the Secretary shall submit to Congress a ‘‘(ii) the current and projected demand and aged on the date of enactment of this section report containing an estimate of the cost availability of medical isotopes in regular by the Department shall be considered by- and schedule to complete a draft and final current domestic use; product material (as defined by section 11 environmental impact statement and to ‘‘(iii) the progress that is being made by e.(2) of the Atomic Energy Act of 1954 (42 issue a record of decision for a permanent the Department of Energy and others to U.S.C. 2014(e)(2))). The Department may dis- disposal facility, utilizing either a new or ex- eliminate all use of highly enriched uranium pose of the material in a facility regulated isting facility, for GTCC waste.’’. in reactor fuel, reactor targets, and medical by the Commission or by an Agreement SEC. 636. PROHIBITION ON NUCLEAR EXPORTS isotope production facilities; and State. If the Department disposes of the ma- TO COUNTRIES THAT SPONSOR TER- ‘‘(iv) the potential cost differential in med- terial in such a facility, the Commission or RORISM. ical isotope production in the reactors and the Agreement State shall regulate the ma- (a) IN GENERAL.—Section 129 of the Atomic target processing facilities if the products terial as byproduct material under that Act. Energy Act of 1954 (42 U.S.C. 2158) is amend- were derived from production systems that This material shall remain subject to the ju- ed—

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(1) by inserting ‘‘a.’’ before ‘‘No nuclear SEC. 638. NATIONAL URANIUM STOCKPILE. (3) PROJECT MANAGEMENT.— materials and equipment’’; and The USEC Privatization Act (42 U.S.C. (A) MANAGEMENT.—The project shall be (2) by adding at the end the following new 2297h et seq.) is amended by adding at the managed within the Department by the Of- subsection: end the following new section: fice of Nuclear Energy, Science, and Tech- ‘‘b.(1) Notwithstanding any other provision ‘‘SEC. 3118. NATIONAL URANIUM STOCKPILE. nology. of law, including specifically section 121 of ‘‘(a) STOCKPILE CREATION.—The Secretary (B) LEAD LABORATORY.—The lead labora- this Act, and except as provided in para- of Energy may create a national low-en- tory for the project, providing the site for graphs (2) and (3), no nuclear materials and riched uranium stockpile with the goals to— the reactor construction, shall be the Idaho equipment or sensitive nuclear technology, ‘‘(1) enhance national energy security; and National Laboratory (in this subsection re- including items and assistance authorized by ‘‘(2) reduce global proliferation threats. ferred to as ‘‘INL’’). (C) STEERING COMMITTEE.—The Secretary section 57 b. of this Act and regulated under ‘‘(b) SOURCE OF MATERIAL.—The Secretary shall establish a national steering com- part 810 of title 10, Code of Federal Regula- shall obtain material for the stockpile mittee with membership from the national tions, and nuclear-related items on the Com- from— laboratories, universities, and industry to merce Control List maintained under part ‘‘(1) material derived from blend-down of provide advice to the Secretary and the Di- 774 of title 15 of the Code of Federal Regula- Russian highly enriched uranium derived rector of the Office of Nuclear Energy, tions, shall be exported or reexported, or from weapons materials; and Science, and Technology on technical and transferred or retransferred whether directly ‘‘(2) domestically mined and enriched ura- program management aspects of the project. or indirectly, and no Federal agency shall nium. (D) COLLABORATION.—Project activities issue any license, approval, or authorization ‘‘(c) LIMITATION ON SALES OR TRANSFERS.— shall be conducted at INL, other national for the export or reexport, or transfer, or re- Sales or transfer of materials in the stock- pile shall occur pursuant to section 3112.’’. laboratories, universities, domestic industry, transfer, whether directly or indirectly, of and international partners. these items or assistance (as defined in this SEC. 639. NUCLEAR REGULATORY COMMISSION (4) PROJECT REQUIREMENTS.— paragraph) to any country whose govern- MEETINGS. (A) RESEARCH AND DEVELOPMENT.— ment has been identified by the Secretary of If a quorum of the Nuclear Regulatory (i) IN GENERAL.—The project shall include Commission gathers to discuss official Com- State as engaged in state sponsorship of ter- planning, research and development, design, mission business the discussions shall be re- rorist activities (specifically including any and construction of an advanced, next-gen- corded, and the Commission shall notify the country the government of which has been eration, nuclear energy system suitable for determined by the Secretary of State under public of such discussions within 15 days enabling further research and development section 620A(a) of the Foreign Assistance Act after they occur. The Commission shall on advanced reactor technologies and alter- of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the promptly make a transcript of the recording native approaches for reactor-based genera- Export Administration Act of 1979 (50 U.S.C. available to the public on request, except to tion of hydrogen. the extent that public disclosure is exempted App. 2405(j)(1)), or section 40(d) of the Arms (ii) REACTOR TEST CAPABILITIES AT INL.— Export Control Act (22 U.S.C. 2780(d)) to have or prohibited by law. This section shall not The project shall utilize, where appropriate, repeatedly provided support for acts of inter- apply to a meeting, within the meaning of extensive reactor test capabilities resident national terrorism). that term under section 552b(a)(2) of title 5, at INL. United States Code. ‘‘(2) This subsection shall not apply to ex- (iii) ALTERNATIVES.—The project shall be ports, reexports, transfers, or retransfers of SEC. 640. EMPLOYEE BENEFITS. designed to explore technical, environ- radiation monitoring technologies, surveil- Section 3110 of the USEC Privatization Act mental, and economic feasibility of alter- lance equipment, seals, cameras, tamper-in- (42 U.S.C. 2297h-8(a)) is amended by adding at native approaches for reactor-based hydro- dication devices, nuclear detectors, moni- the end the following new paragraph: gen production. toring systems, or equipment necessary to ‘‘(8) CONTINUITY OF BENEFITS.—Not later (iv) INDUSTRIAL LEAD.—The industrial lead safely store, transport, or remove hazardous than 30 days after the date of enactment of for the project shall be a company incor- materials, whether such items, services, or this paragraph, the Secretary shall imple- porated in the United States. information are regulated by the Depart- ment such actions as are necessary to ensure (B) INTERNATIONAL COLLABORATION.— ment of Energy, the Department of Com- that any employee who— (i) IN GENERAL.—The Secretary shall seek merce, or the Nuclear Regulatory Commis- ‘‘(A) is involved in providing infrastructure international cooperation, participation, and sion, except to the extent that such tech- or environmental remediation services at financial contribution in this project. nologies, equipment, seals, cameras, devices, the Portsmouth, Ohio, or the Paducah, Ken- (ii) ASSISTANCE FROM INTERNATIONAL PART- detectors, or systems are available for use in tucky, Gaseous Diffusion Plant; NERS.—The Secretary may contract for as- the design or construction of nuclear reac- ‘‘(B) has been an employee of the Depart- sistance from specialists or facilities from tors or nuclear weapons. ment of Energy’s predecessor management member countries of the Generation IV and integrating contractor (or its first or International Forum, the Russian Federa- ‘‘(3) The President may waive the applica- second tier subcontractors), or of the Cor- tion, or other international partners where tion of paragraph (1) to a country if the poration, at the Portsmouth, Ohio, or the such specialists or facilities provide access President determines and certifies to Con- Paducah, Kentucky, facility; and to cost-effective and relevant skills or test gress that the waiver will not result in any ‘‘(C) was eligible as of April 1, 2005, to par- capabilities. increased risk that the country receiving the ticipate in or transfer into the Multiple Em- (iii) GENERATION IV INTERNATIONAL waiver will acquire nuclear weapons, nuclear ployer Pension Plan or the associated mul- FORUM.—International activities shall be co- reactors, or any materials or components of tiple employer retiree health care benefit ordinated with the Generation IV Inter- nuclear weapons and— plans, as defined in those plans, national Forum. ‘‘(A) the government of such country has shall continue to be eligible to participate in (iv) GENERATION IV NUCLEAR ENERGY SYS- not within the preceding 12-month period TEMS PROGRAM.—The Secretary may combine willfully aided or abetted the international or transfer into such pension or health care benefit plans.’’. this project with the Generation IV Nuclear proliferation of nuclear explosive devices to Energy Systems Program. individuals or groups or willfully aided and Subtitle C—Additional Hydrogen Production (C) DEMONSTRATION.—The overall project, abetted an individual or groups in acquiring Provisions which may involve demonstration of selected unsafeguarded nuclear materials; SEC. 651. HYDROGEN PRODUCTION PROGRAMS. project objectives in a partner nation, must ‘‘(B) in the judgment of the President, the (a) ADVANCED REACTOR HYDROGEN COGEN- demonstrate both electricity and hydrogen government of such country has provided ERATION PROJECT.— production and may provide flexibility, adequate, verifiable assurances that it will (1) PROJECT ESTABLISHMENT.— The Sec- where technically and economically feasible cease its support for acts of international retary is directed to establish an Advanced in the design and construction, to enable terrorism; Reactor Hydrogen Cogeneration Project. tests of alternative reactor core and cooling ‘‘(C) the waiver of that paragraph is in the (2) PROJECT DEFINITION.— The project shall configurations. vital national security interest of the United consist of the research, development, design, (D) PARTNERSHIPS.—The Secretary shall States; or construction, and operation of a hydrogen establish cost-shared partnerships with do- ‘‘(D) such a waiver is essential to prevent production cogeneration research facility mestic industry or international partici- or respond to a serious radiological hazard in that, relative to the current commercial re- pants for the research, development, design, the country receiving the waiver that may actors, enhances safety features, reduces construction, and operation of the research or does threaten public health and safety.’’. waste production, enhances thermal effi- facility, and preference in determining the (b) APPLICABILITY TO EXPORTS APPROVED ciencies, increases proliferation resistance, final project structure shall be given to an FOR TRANSFER BUT NOT TRANSFERRED.—Sub- and has the potential for improved econom- overall project which retains United States section b. of section 129 of Atomic Energy ics and physical security in reactor siting. leadership while maximizing cost sharing op- Act of 1954, as added by subsection (a) of this This facility shall be constructed so as to en- portunities and minimizing Federal funding section, shall apply with respect to exports able research and development on advanced responsibilities. that have been approved for transfer as of reactors of the type selected and on alter- (E) TARGET DATE.—The Secretary shall se- the date of the enactment of this Act but native approaches for reactor-based produc- lect technologies and develop the project to have not yet been transferred as of that date. tion of hydrogen. provide initial testing of either hydrogen

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00086 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.054 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2239 production or electricity generation by 2011, scriptions of the Secretary’s progress in es- event of a terrorist attack against a nuclear or provide a report to Congress explaining tablishing the projects and other programs facility; and why this date is not feasible. required under this section, and rec- (12) the potential for theft and diversion of (F) WAIVER OF CONSTRUCTION TIMELINES.— ommendations for promoting the avail- nuclear materials from such facilities. The Secretary is authorized to conduct the ability of advanced nuclear reactor energy (b) SUMMARY AND CLASSIFICATION RE- Advanced Reactor Hydrogen Cogeneration technologies for the production of hydrogen. PORT.—Not later than 180 days after the date Project without the constraints of DOE (e) AUTHORIZATION OF APPROPRIATIONS.— of the enactment of this Act, the President Order 413.3, relating to program and project For the purpose of supporting research pro- shall transmit to Congress and the Commis- management for the acquisition of capital grams related to the development of ad- sion a report— assets, as necessary to meet the specified vanced nuclear reactor technologies under (1) summarizing the types of threats iden- operational date. this section, there are authorized to be ap- tified under subsection (a); and (G) COMPETITION.—The Secretary may fund propriated to the Secretary— (2) classifying each type of threat identi- up to 2 teams for up to 1 year to develop de- (1) $65,000,000 for fiscal year 2006; fied under subsection (a), in accordance with tailed proposals for competitive evaluation (2) $74,750,000 for fiscal year 2007; existing laws and regulations, as either— and selection of a single proposal and con- (3) $85,962,500 for fiscal year 2008; (A) involving attacks and destructive acts, cept for further progress. The Secretary (4) $98,856,875 for fiscal year 2009; including sabotage, directed against the fa- shall define the format of the competitive (5) $113,685,406 for fiscal year 2010; cility by an enemy of the United States, evaluation of proposals. (6) $130,738,217 for fiscal year 2011; whether a foreign government or other per- (H) USE OF FACILITIES.—Research facilities (7) $150,348,950 for fiscal year 2012; son, or otherwise falling under the respon- in industry, national laboratories, or univer- (8) $172,901,292 for fiscal year 2013; sibilities of the Federal Government; or sities either within the United States or (9) $198,836,486 for fiscal year 2014; and (B) involving the type of risks that Com- with cooperating international partners may (10) $228,661,959 for fiscal year 2015. mission licensees should be responsible for be used to develop the enabling technologies SEC. 652. DEFINITIONS. guarding against. for the research facility. Utilization of do- For purposes of this subtitle— (c) FEDERAL ACTION REPORT.—Not later mestic university-based facilities shall be (1) the term ‘‘advanced nuclear reactor than 90 days after the date on which a report encouraged to provide educational opportu- technologies’’ means— is transmitted under subsection (b), the nities for student development. (A) technologies related to advanced light President shall transmit to Congress a re- (I) ROLE OF NUCLEAR REGULATORY COMMIS- water reactors that may be commercially port on actions taken, or to be taken, to ad- SION.— available in the near-term, including mid- dress the types of threats identified under (i) IN GENERAL.—The Nuclear Regulatory sized reactors with passive safety features, subsection (b)(2)(A), including identification Commission shall have licensing and regu- for the generation of electric power from nu- of the Federal, State, and local agencies re- latory authority for any reactor authorized clear fission and the production of hydrogen; sponsible for carrying out the obligations under this subsection, pursuant to section and and authorities of the United States. Such 202 of the Energy Reorganization Act of 1974 (B) technologies related to other nuclear report may include a classified annex, as ap- (42 U.S.C. 5842). reactors that may require prototype dem- propriate. (d) REGULATIONS.—Not later than 180 days (ii) RISK-BASED CRITERIA.—The Secretary onstration prior to availability in the mid- after the date on which a report is trans- shall seek active participation of the Nu- term or long-term, including high-tempera- mitted under subsection (b), the Commission clear Regulatory Commission throughout ture, gas-cooled reactors and liquid metal re- may revise, by rule, the design basis threats the project to develop risk-based criteria for actors, for the generation of electric power issued before the date of enactment of this any future commercial development of a from nuclear fission and the production of section as the Commission considers appro- similar reactor architecture. hydrogen; priate based on the summary and classifica- (J) REPORT.—The Secretary shall develop (2) the term ‘‘institution of higher edu- tion report. and transmit to Congress a comprehensive cation’’ has the meaning given to that term (e) PHYSICAL SECURITY PROGRAM.—The project plan not later than 3 months after in section 101(a) of the Higher Education Act Commission shall establish an operational the date of enactment of this Act. The of 1965 (20 U.S.C. 1001(a)); and safeguards response evaluation program that project plan shall be updated annually with (3) the term ‘‘Secretary’’ means the Sec- ensures that the physical protection capa- each annual budget submission. retary of Energy. bility and operational safeguards response (b) ADVANCED NUCLEAR REACTOR TECH- Subtitle D—Nuclear Security for sensitive nuclear facilities, as determined NOLOGIES .—The Secretary shall— SEC. 661. NUCLEAR FACILITY THREATS. (1) prepare a detailed roadmap for carrying by the Commission consistent with the pro- (a) STUDY.—The President, in consultation out the provisions in this subtitle related to tection of public health and the common de- with the Nuclear Regulatory Commission fense and security, shall be tested periodi- advanced nuclear reactor technologies and (referred to in this subtitle as the ‘‘Commis- for implementing the recommendations re- cally through Commission approved or de- sion’’) and other appropriate Federal, State, signed, observed, and evaluated force-on- lated to advanced nuclear reactor tech- and local agencies and private entities, shall nologies that are included in the report force exercises to determine whether the conduct a study to identify the types of ability to defeat the design basis threat is transmitted under subsection (d); and threats that pose an appreciable risk to the (2) provide for the establishment of 5 being maintained. For purposes of this sub- security of the various classes of facilities li- section, the term ‘‘sensitive nuclear facili- projects in geographic areas that are region- censed by the Commission under the Atomic ally and climatically diverse to demonstrate ties’’ includes at a minimum commercial nu- Energy Act of 1954 (42 U.S.C. 2011 et seq.). clear power plants and category I fuel cycle the commercial production of hydrogen at Such study shall take into account, but not existing nuclear power plants, including one facilities. be limited to— (f) CONTROL OF INFORMATION.—Notwith- demonstration project at a national labora- (1) the events of September 11, 2001; standing any other provision of law, the tory or institution of higher education using (2) an assessment of physical, cyber, bio- Commission may undertake any rulemaking an advanced gas-cooled reactor. chemical, and other terrorist threats; under this subtitle in a manner that will (c) COLLOCATION WITH HYDROGEN PRODUC- (3) the potential for attack on facilities by fully protect safeguards and classified na- TION FACILITY.—Section 103 of the Atomic multiple coordinated teams of a large num- Energy Act of 1954 (42 U.S.C. 2011) is amended tional security information. ber of individuals; (g) FEDERAL SECURITY COORDINATORS.— by adding at the end the following new sub- section: (4) the potential for assistance in an attack (1) REGIONAL OFFICES.—Not later than 18 ‘‘g. The Commission shall give priority to from several persons employed at the facil- months after the date of enactment of this the licensing of a utilization facility that is ity; Act, the Commission shall assign a Federal collocated with a hydrogen production facil- (5) the potential for suicide attacks; security coordinator, under the employment ity. The Commission shall issue a final deci- (6) the potential for water-based and air- of the Commission, to each region of the sion approving or disapproving the issuance based threats; Commission. of a license to construct and operate a utili- (7) the potential use of explosive devices of (2) RESPONSIBILITIES.—The Federal secu- zation facility not later than the expiration considerable size and other modern weap- rity coordinator shall be responsible for— of 3 years after the date of the submission of onry; (A) communicating with the Commission such application, if the application ref- (8) the potential for attacks by persons and other Federal, State, and local authori- erences a Commission-certified design and with a sophisticated knowledge of facility ties concerning threats, including threats an early site permit, unless the Commission operations; against such classes of facilities as the Com- determines that the applicant has proposed (9) the potential for fires, especially fires mission determines to be appropriate; material and substantial changes to the de- of long duration; (B) ensuring that such classes of facilities sign or the site design parameters.’’. (10) the potential for attacks on spent fuel as the Commission determines to be appro- (d) REPORT.—The Secretary shall transmit shipments by multiple coordinated teams of priate maintain security consistent with the to the Congress not later than 120 days after a large number of individuals; security plan in accordance with the appro- the date of enactment of this Act a report (11) the adequacy of planning to protect priate threat level; and containing detailed summaries of the road- the public health and safety at and around (C) assisting in the coordination of secu- maps prepared under subsection (b)(1), de- nuclear facilities, as appropriate, in the rity measures among the private security

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00087 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.054 H20PT1 H2240 CONGRESSIONAL RECORD — HOUSE April 20, 2005 forces at such classes of facilities as the such results to the individual or entity re- a check of the system established under sec- Commission determines to be appropriate quired to conduct the fingerprinting under tion 103(b) of the Brady Handgun Violence and Federal, State, and local authorities, as paragraph (1)(A).’’. Prevention Act (18 U.S.C. 922 note) to deter- appropriate. (b) ADMINISTRATION.—Subsection c. of sec- mine whether the person applying for the au- (h) TRAINING PROGRAM.—The President tion 149 of the Atomic Energy Act of 1954 (42 thority is prohibited from possessing or re- shall establish a program to provide tech- U.S.C. 2169(c)) is amended— ceiving a firearm under Federal or State law. nical assistance and training to Federal (1) by striking ‘‘, subject to public notice ‘‘(3) This subsection shall become effective agencies, the National Guard, and State and and comment, regulations—’’ and inserting upon the issuance of guidelines by the Com- local law enforcement and emergency re- ‘‘requirements—’’; and mission, with the approval of the Attorney sponse agencies in responding to threats (2) by striking, in paragraph (2)(B), General, to govern the implementation of against a designated nuclear facility. ‘‘unescorted access to the facility of a li- this subsection. SEC. 662. FINGERPRINTING FOR CRIMINAL HIS- censee or applicant’’ and inserting ‘‘(4) In this subsection, the terms ‘hand- TORY RECORD CHECKS. ‘‘unescorted access to a utilization facility, gun’, ‘rifle’, ‘shotgun’, ‘firearm’, ‘ammuni- (a) IN GENERAL.—Subsection a. of section radioactive material, or other property de- tion’, ‘machinegun’, ‘semiautomatic assault 149 of the Atomic Energy Act of 1954 (42 scribed in subsection a.(1)(B)’’. weapon’, ‘large capacity ammunition feeding U.S.C. 2169(a)) is amended— (c) BIOMETRIC METHODS.—Subsection d. of device’, ‘short-barreled shotgun’, and ‘short- section 149 of the Atomic Energy Act of 1954 (1) by striking ‘‘a. The Nuclear’’ and all barreled rifle’ shall have the meanings given (42 U.S.C. 2169(d)) is redesignated as sub- that follows through ‘‘section 147.’’ and in- those terms in section 921(a) of title 18, section e., and the following is inserted after serting the following: United States Code.’’. subsection c.: ‘‘a. IN GENERAL.— ‘‘d. USE OF OTHER BIOMETRIC METHODS.— SEC. 664. UNAUTHORIZED INTRODUCTION OF ‘‘(1) REQUIREMENTS.— The Commission may satisfy any require- DANGEROUS WEAPONS. ‘‘(A) IN GENERAL.—The Commission shall ment for a person to conduct fingerprinting Section 229 a. of the Atomic Energy Act of require each individual or entity— under this section using any other biometric 1954 (42 U.S.C. 2278a(a)) is amended in the ‘‘(i) that is licensed or certified to engage method for identification approved for use by first sentence by inserting ‘‘or subject to the in an activity subject to regulation by the the Attorney General, after the Commission licensing authority of the Commission or to Commission; has approved the alternative method by certification by the Commission under this ‘‘(ii) that has filed an application for a li- rule.’’. Act or any other Act’’ before the period at cense or certificate to engage in an activity SEC. 663. USE OF FIREARMS BY SECURITY PER- the end. subject to regulation by the Commission; or SONNEL OF LICENSEES AND CER- ‘‘(iii) that has notified the Commission, in TIFICATE HOLDERS OF THE COM- SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR writing, of an intent to file an application MISSION. FUEL. for licensing, certification, permitting, or Section 161 of the Atomic Energy Act of (a) IN GENERAL.—Section 236 a. of the approval of a product or activity subject to 1954 (42 U.S.C. 2201) is amended by adding at Atomic Energy Act of 1954 (42 U.S.C. 2284(a)) regulation by the Commission, the end the following subsection: is amended— ‘‘(z)(1) notwithstanding section 922(o), (v), (1) in paragraph (2), by striking ‘‘storage to fingerprint each individual described in and (w) of title 18, United States Code, or facility’’ and inserting ‘‘storage, treatment, subparagraph (B) before the individual is any similar provision of any State law or or disposal facility’’; permitted unescorted access or access, any similar rule or regulation of a State or (2) in paragraph (3)— whichever is applicable, as described in sub- any political subdivision of a State prohib- (A) by striking ‘‘such a utilization facil- paragraph (B). iting the transfer or possession of a handgun, ity’’ and inserting ‘‘a utilization facility li- ‘‘(B) INDIVIDUALS REQUIRED TO BE a rifle or shotgun, a short-barreled shotgun, censed under this Act’’; and FINGERPRINTED.—The Commission shall re- a short-barreled rifle, a machinegun, a semi- (B) by striking ‘‘or’’ at the end; quire to be fingerprinted each individual automatic assault weapon, ammunition for (3) in paragraph (4)— who— the foregoing, or a large capacity ammuni- (A) by striking ‘‘facility licensed’’ and in- ‘‘(i) is permitted unescorted access to— tion feeding device, authorize security per- serting ‘‘, uranium conversion, or nuclear ‘‘(I) a utilization facility; or sonnel of licensees and certificate holders of fuel fabrication facility licensed or cer- ‘‘(II) radioactive material or other prop- the Commission (including employees of con- tified’’; and erty subject to regulation by the Commis- tractors of licensees and certificate holders) (B) by striking the comma at the end and sion that the Commission determines to be to receive, possess, transport, import, and inserting a semicolon; and of such significance to the public health and use 1 or more of those weapons, ammunition, (4) by inserting after paragraph (4) the fol- safety or the common defense and security or devices, if the Commission determines lowing: as to warrant fingerprinting and background that— ‘‘(5) any production, utilization, waste checks; or ‘‘(A) such authorization is necessary to the storage, waste treatment, waste disposal, ‘‘(ii) is permitted access to safeguards in- discharge of the security personnel’s official uranium enrichment, uranium conversion, or formation under section 147.’’; duties; and nuclear fuel fabrication facility subject to li- (2) by striking ‘‘All fingerprints obtained ‘‘(B) the security personnel— censing or certification under this Act dur- by a licensee or applicant as required in the ‘‘(i) are not otherwise prohibited from pos- ing construction of the facility, if the de- preceding sentence’’ and inserting the fol- sessing or receiving a firearm under Federal struction or damage caused or attempted to lowing: or State laws pertaining to possession of be caused could adversely affect public ‘‘(2) SUBMISSION TO THE ATTORNEY GEN- firearms by certain categories of persons; health and safety during the operation of the ERAL.—All fingerprints obtained by an indi- ‘‘(ii) have successfully completed require- facility; vidual or entity as required in paragraph ments established through guidelines imple- ‘‘(6) any primary facility or backup facility (1)’’; menting this subsection for training in use from which a radiological emergency pre- (3) by striking ‘‘The costs of any identifica- of firearms and tactical maneuvers; paredness alert and warning system is acti- tion and records check conducted pursuant ‘‘(iii) are engaged in the protection of— vated; or to the preceding sentence shall be paid by ‘‘(I) facilities owned or operated by a Com- ‘‘(7) any radioactive material or other the licensee or applicant.’’ and inserting the mission licensee or certificate holder that property subject to regulation by the Nu- following: are designated by the Commission; or clear Regulatory Commission that, before ‘‘(3) COSTS.—The costs of any identifica- ‘‘(II) radioactive material or other prop- the date of the offense, the Nuclear Regu- tion and records check conducted pursuant erty owned or possessed by a person that is latory Commission determines, by order or to paragraph (1) shall be paid by the indi- a licensee or certificate holder of the Com- regulation published in the Federal Register, vidual or entity required to conduct the mission, or that is being transported to or is of significance to the public health and fingerprinting under paragraph (1)(A).’’; and from a facility owned or operated by such a safety or to common defense and security,’’. (4) by striking ‘‘Notwithstanding any other licensee or certificate holder, and that has ENALTIES.—Section 236 of the Atomic provision of law, the Attorney General may been determined by the Commission to be of (b) P provide all the results of the search to the significance to the common defense and se- Energy Act of 1954 (42 U.S.C. 2284) is amended Commission, and, in accordance with regula- curity or public health and safety; and by striking ‘‘$10,000 or imprisoned for not tions prescribed under this section, the Com- ‘‘(iv) are discharging their official duties. more than 20 years, or both, and, if death re- mission may provide such results to licensee ‘‘(2) Such receipt, possession, transpor- sults to any person, shall be imprisoned for or applicant submitting such fingerprints.’’ tation, importation, or use shall be subject any term of years or for life’’ both places it and inserting the following: to— appears and inserting ‘‘$1,000,000 or impris- oned for up to life without parole’’. ‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE- ‘‘(A) chapter 44 of title 18, United States QUIRED TO CONDUCT FINGERPRINTING.—Not- Code, except for section 922(a)(4), (o), (v), and SEC. 666. SECURE TRANSFER OF NUCLEAR MATE- withstanding any other provision of law, the (w); RIALS. Attorney General may provide all the results ‘‘(B) chapter 53 of title 26, United States (a) AMENDMENT.—Chapter 14 of the Atomic of the search to the Commission, and, in ac- Code, except for section 5844; and Energy Act of 1954 (42 U.S.C. 2201–2210b) is cordance with regulations prescribed under ‘‘(C) a background check by the Attorney amended by adding at the end the following this section, the Commission may provide General, based on fingerprints and including new section:

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00088 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.055 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2241 ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MA- tion of section 3116 of the Ronald W. Reagan under this section to a fleet or covered per- TERIALS. National Defense Authorization Act for Fis- son for each qualifying volume of the lease ‘‘a. The Nuclear Regulatory Commission cal Year 2005; and condensate component of fuel containing at shall establish a system to ensure that mate- ‘‘(iv) amounts appropriated to the Commis- least 50 percent lease condensate, or fuels ex- rials described in subsection b., when trans- sion for homeland security activities of the tracted from lease condensate, after the date ferred or received in the United States by Commission for the fiscal year, except for of enactment of this section for use by the any party pursuant to an import or export li- the costs of fingerprinting and background fleet or covered person in vehicles owned or cense issued pursuant to this Act, are accom- checks required by section 149 of the Atomic operated by the fleet or covered person that panied by a manifest describing the type and Energy Act of 1954 (42 U.S.C. 2169) and the weigh more than 8,500 pounds gross vehicle amount of materials being transferred or re- costs of conducting security inspections.’’; weight rating. ceived. Each individual receiving or accom- and ‘‘(b) REQUIREMENTS.—A credit allocated panying the transfer of such materials shall (D) by amending paragraph (2)(B)(v) to under this section— be subject to a security background check read as follows: ‘‘(1) shall be subject to the same excep- conducted by appropriate Federal entities. ‘‘(v) 90 percent for fiscal year 2005 and each tions, authority, documentation, and use of ‘‘b. Except as otherwise provided by the fiscal year thereafter.’’. credits that are specified for qualifying vol- Commission by regulation, the materials re- (c) REPEAL.—Section 7601 of the Consoli- umes of biodiesel in section 312; and ferred to in subsection a. are byproduct ma- dated Omnibus Budget Reconciliation Act of ‘‘(2) shall not be considered a credit under terials, source materials, special nuclear ma- 1985 (42 U.S.C. 2213) is repealed. section 508. terials, high-level radioactive waste, spent ‘‘(c) REGULATION.— TITLE VII—VEHICLES AND FUELS nuclear fuel, transuranic waste, and low- ‘‘(1) IN GENERAL.—Subject to subsection level radioactive waste (as defined in section Subtitle A—Existing Programs (d), not later than January 1, 2006, after the 2(16) of the Nuclear Waste Policy Act of 1982 SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL- collection of appropriate information and (42 U.S.C. 10101(16))).’’. FUELED VEHICLES. data that consider usage options, uses in (b) REGULATIONS.—Not later than 1 year Section 400AA(a)(3)(E) of the Energy Pol- other industries, products, or processes, po- after the date of the enactment of this Act, icy and Conservation Act (42 U.S.C. tential volume capacities, costs, air emis- and from time to time thereafter as it con- 6374(a)(3)(E)) is amended to read as follows: sions, and fuel efficiencies, the Secretary siders necessary, the Nuclear Regulatory ‘‘(E)(i) Dual fueled vehicles acquired pursu- shall issue a regulation establishing require- Commission shall issue regulations identi- ant to this section shall be operated on alter- ments and procedures for the implementa- fying radioactive materials or classes of in- native fuels unless the Secretary determines tion of this section. dividuals that, consistent with the protec- that an agency qualifies for a waiver of such ‘‘(2) QUALIFYING VOLUME.—The regulation tion of public health and safety and the com- requirement for vehicles operated by the shall include a determination of an appro- mon defense and security, are appropriate agency in a particular geographic area in priate qualifying volume for lease conden- exceptions to the requirements of section which— sate, except that in no case shall the Sec- 170C of the Atomic Energy Act of 1954, as ‘‘(I) the alternative fuel otherwise required retary determine that the qualifying volume added by subsection (a) of this section. to be used in the vehicle is not reasonably for lease condensate is less than 1,125 gal- (c) EFFECTIVE DATE.—The amendment available to retail purchasers of the fuel, as lons. made by subsection (a) shall take effect upon certified to the Secretary by the head of the ‘‘(d) APPLICABILITY.—This section applies the issuance of regulations under subsection agency; or unless the Secretary finds that the use of (b), except that the background check re- ‘‘(II) the cost of the alternative fuel other- lease condensate as an alternative fuel would quirement shall become effective on a date wise required to be used in the vehicle is un- adversely affect public health or safety or established by the Commission. reasonably more expensive compared to gas- ambient air quality or the environment.’’. (d) EFFECT ON OTHER LAW.—Nothing in this oline, as certified to the Secretary by the (2) TABLE OF CONTENTS AMENDMENT.—The section or the amendment made by this sec- head of the agency. table of contents of the Energy Policy Act of tion shall waive, modify, or affect the appli- ‘‘(ii) The Secretary shall monitor compli- 1992 (42 U.S.C. prec. 13201) is amended by add- cation of chapter 51 of title 49, United States ance with this subparagraph by all such ing at the end of the items relating to title Code, part A of subtitle V of title 49, United fleets and shall report annually to Congress III the following: States Code, part B of subtitle VI of title 49, on the extent to which the requirements of ‘‘Sec. 313. Lease condensate use credits.’’. United States Code, and title 23, United this subparagraph are being achieved. The (c) EMERGENCY EXEMPTION.—Section 301 of States Code. report shall include information on annual the Energy Policy Act of 1992 (42 U.S.C. (e) TABLE OF SECTIONS AMENDMENT.—The reductions achieved from the use of petro- 13211) is amended in paragraph (9)(E) by in- table of sections for chapter 14 of the Atomic leum-based fuels and the problems, if any, serting before the semicolon at the end ‘‘, in- Energy Act of 1954 is amended by adding at encountered in acquiring alternative fuels.’’. cluding vehicles directly used in the emer- the end the following new item: SEC. 704. INCREMENTAL COST ALLOCATION. gency repair of transmission lines and in the ‘‘Sec. 170C. Secure transfer of nuclear mate- Section 303(c) of the Energy Policy Act of restoration of electricity service following rials.’’. 1992 (42 U.S.C. 13212(c)) is amended by strik- power outages, as determined by the Sec- retary’’. SEC. 667. DEPARTMENT OF HOMELAND SECURITY ing ‘‘may’’ and inserting ‘‘shall’’. SEC. 706. REVIEW OF ENERGY POLICY ACT OF CONSULTATION. SEC. 705. LEASE CONDENSATES. 1992 PROGRAMS. (a) LEASE CONDENSATE FUELS.—Section 301 Before issuing a license for a utilization fa- (a) IN GENERAL.—Not later than 180 days cility, the Nuclear Regulatory Commission of the Energy Policy Act of 1992 (42 U.S.C. after the date of enactment of this section, shall consult with the Department of Home- 13211) is amended— the Secretary of Energy shall complete a land Security concerning the potential (1) in paragraph (2), by inserting ‘‘mixtures study to determine the effect that titles III, vulnerabilities of the location of the pro- containing 50 percent or more by volume of IV, and V of the Energy Policy Act of 1992 (42 posed facility to terrorist attack. lease condensate or fuels extracted from U.S.C. 13211 et seq.) have had on— SEC. 668. AUTHORIZATION OF APPROPRIATIONS. lease condensate;’’ after ‘‘liquefied petro- (1) the development of alternative fueled (a) IN GENERAL.—There are authorized to leum gas;’’; vehicle technology; be appropriated such sums as are necessary (2) in paragraph (13), by striking ‘‘and’’ at (2) the availability of that technology in to carry out this subtitle and the amend- the end; the market; and ments made by this subtitle. (3) in paragraph (14)— (3) the cost of alternative fueled vehicles. (b) NUCLEAR REGULATORY COMMISSION USER (A) by inserting ‘‘mixtures containing 50 (b) TOPICS.—As part of the study under FEES AND ANNUAL CHARGES.—Section 6101 of percent or more by volume of lease conden- subsection (a), the Secretary shall specifi- the Omnibus Budget Reconciliation Act of sate or fuels extracted from lease conden- cally identify— 1990 (42 U.S.C. 2214) is amended— sate,’’ after ‘‘liquefied petroleum gas,’’; and (1) the number of alternative fueled vehi- (1) in subsection (a)— (B) by striking the period and inserting ‘‘; cles acquired by fleets or covered persons re- (A) by striking ‘‘Except as provided in and’’; quired to acquire alternative fueled vehicles; paragraph (3), the’’ and inserting ‘‘The’’ in (4) by adding at the end the following: (2) the quantity, by type, of alternative paragraph (1); and ‘‘(15) the term ‘lease condensate’ means a fuel actually used in alternative fueled vehi- (B) by striking paragraph (3); and mixture, primarily of pentanes and heavier cles acquired by fleets or covered persons; (2) in subsection (c)— hydrocarbons, that is recovered as a liquid (3) the quantity of petroleum displaced by (A) by striking ‘‘and’’ at the end of para- from natural gas in lease separation facili- the use of alternative fuels in alternative graph (2)(A)(i); ties.’’. fueled vehicles acquired by fleets or covered (B) by striking the period at the end of (b) LEASE CONDENSATE USE CREDITS.— persons; paragraph (2)(A)(ii) and inserting a semi- (1) IN GENERAL.—Title III of the Energy (4) the direct and indirect costs of compli- colon; Policy Act of 1992 (42 U.S.C. 13211 et seq.) is ance with requirements under titles III, IV, (C) by adding at the end of paragraph (2)(A) amended by adding at the end the following: and V of the Energy Policy Act of 1992 (42 the following new clauses: ‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. U.S.C. 13211 et seq.), including— ‘‘(iii) amounts appropriated to the Com- ‘‘(a) IN GENERAL.—Subject to subsection (A) vehicle acquisition requirements im- mission for the fiscal year for implementa- (d), the Secretary shall allocate 1 credit posed on fleets or covered persons;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00089 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.055 H20PT1 H2242 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (B) administrative and recordkeeping ex- (B) will be used for a minimum of 3 years; (B) emits not more than the lesser of— penses; (2) grant funds will be used for the pur- (i) for vehicles manufactured in model (C) fuel and fuel infrastructure costs; chase of hybrid retrofit or conversion tech- years 2004 through 2006, 2.5 grams per brake (D) associated training and employee ex- nology, including State taxes and contract horsepower-hour of nonmethane hydro- penses; and fees; and carbons and oxides of nitrogen and .01 grams (E) any other factors or expenses the Sec- (3) grant recipients will provide at least 15 per brake horsepower-hour of particulate retary determines to be necessary to compile percent of the total cost of the retrofit or matter; or reliable estimates of the overall costs and conversion, including the purchase of hybrid (ii) the quantity of emissions of non- benefits of complying with programs under retrofit or conversion technology and all methane hydrocarbons, oxides of nitrogen, those titles for fleets, covered persons, and necessary labor for installation of the ret- and particulate matter of the best-per- the national economy; rofit or conversion. forming technology of ultra-low sulfur diesel (5) the existence of obstacles preventing (e) VERIFICATION.—Not later than 90 days vehicles of the same class and application compliance with vehicle acquisition require- after the date of enactment of this Act, the that are commercially available. ments and increased use of alternative fuel Administrator shall publish in the Federal SEC. 722. PILOT PROGRAM. in alternative fueled vehicles acquired by Register procedures to verify— (a) ESTABLISHMENT.—The Secretary, in fleets or covered persons; and (1) the hybrid retrofit or conversion tech- consultation with the Secretary of Transpor- (6) the projected impact of amendments to nology to be demonstrated; and tation, shall establish a competitive grant the Energy Policy Act of 1992 made by this (2) that grants are administered in accord- pilot program, to be administered through title. ance with this section. the Clean Cities Program of the Department (c) REPORT.—Upon completion of the study (f) AUTHORIZATION OF APPROPRIATIONS.— of Energy, to provide not more than 15 geo- under this section, the Secretary shall sub- There are authorized to be appropriated to graphically dispersed project grants to State mit to Congress a report that describes the the Administrator to carry out this section, governments, local governments, or metro- results of the study and includes any rec- to remain available until expended— politan transportation authorities to carry ommendations of the Secretary for legisla- (1) $20,000,000 for fiscal year 2005; out a project or projects for the purposes de- tive or administrative changes concerning (2) $35,000,000 for fiscal year 2006; scribed in subsection (b). the alternative fueled vehicle requirements (3) $45,000,000 for fiscal year 2007; and (b) GRANT PURPOSES.—A grant under this under titles III, IV and V of the Energy Pol- (4) such sums as are necessary for each of section may be used for the following pur- icy Act of 1992 (42 U.S.C. 13211 et seq.). fiscal years 2008 and 2009. poses: (1) The acquisition of alternative fueled ve- SEC. 707. REPORT CONCERNING COMPLIANCE PART 2—ADVANCED VEHICLES WITH ALTERNATIVE FUELED VEHI- hicles or fuel cell vehicles, including— CLE PURCHASING REQUIREMENTS. SEC. 721. DEFINITIONS. (A) passenger vehicles (including neighbor- Section 310(b)(1) of the Energy Policy Act In this part: hood electric vehicles); and of 1992 (42 U.S.C. 13218(b)(1)) is amended by (1) ALTERNATIVE FUELED VEHICLE.— (B) motorized 2-wheel bicycles, scooters, or striking ‘‘1 year after the date of enactment (A) IN GENERAL.—The term ‘‘alternative other vehicles for use by law enforcement of this subsection’’ and inserting ‘‘February fueled vehicle’’ means a vehicle propelled personnel or other State or local government 15, 2006’’. solely on an alternative fuel (as defined in or metropolitan transportation authority Subtitle B—Hybrid Vehicles, Advanced section 301 of the Energy Policy Act of 1992 employees. Vehicles, and Fuel Cell Buses (42 U.S.C. 13211)). (2) The acquisition of alternative fueled ve- (B) EXCLUSION.—The term ‘‘alternative PART 1—HYBRID VEHICLES hicles, hybrid vehicles, or fuel cell vehicles, fueled vehicle’’ does not include a vehicle including— SEC. 711. HYBRID VEHICLES. that the Secretary determines, by regula- (A) buses used for public transportation or The Secretary of Energy shall accelerate tion, does not yield substantial environ- transportation to and from schools; efforts directed toward the improvement of mental benefits over a vehicle operating (B) delivery vehicles for goods or services; batteries and other rechargeable energy stor- solely on gasoline or diesel derived from fos- and age systems, power electronics, hybrid sys- sil fuels. tems integration, and other technologies for (C) ground support vehicles at public air- (2) FUEL CELL VEHICLE.—The term ‘‘fuel use in hybrid vehicles. ports (including vehicles to carry baggage or cell vehicle’’ means a vehicle propelled by an push or pull airplanes toward or away from SEC. 712. HYBRID RETROFIT AND ELECTRIC CON- electric motor powered by a fuel cell system VERSION PROGRAM. terminal gates). that converts chemical energy into elec- (a) ESTABLISHMENT.—The Administrator of (3) The acquisition of ultra-low sulfur die- the Environmental Protection Agency, in tricity by combining oxygen (from air) with sel vehicles. consultation with the Secretary, shall estab- hydrogen fuel that is stored on the vehicle or (4) Installation or acquisition of infrastruc- lish a program for awarding grants on a com- is produced onboard by reformation of a hy- ture necessary to directly support an alter- petitive basis to entities for the installation drocarbon fuel. Such fuel cell system may or native fueled vehicle, fuel cell vehicle, or hy- of hybrid retrofit and electric conversion may not include the use of auxiliary energy brid vehicle project funded by the grant, in- technologies for combustion engine vehicles. storage systems to enhance vehicle perform- cluding fueling and other support equipment. (b) ELIGIBLE RECIPIENTS.—A grant shall be ance. (5) Operation and maintenance of vehicles, awarded under this section only— (3) HYBRID VEHICLE.—The term ‘‘hybrid ve- infrastructure, and equipment acquired as (1) to a local or State governmental entity; hicle’’ means a medium or heavy duty vehi- part of a project funded by the grant. (2) to a for-profit or nonprofit corporation cle propelled by an internal combustion en- (c) APPLICATIONS.— or other person; or gine or heat engine using any combustible (1) REQUIREMENTS.— (3) to 1 or more contracting entities that fuel and an onboard rechargeable energy (A) IN GENERAL.—The Secretary shall issue service combustion engine vehicles for an en- storage device. requirements for applying for grants under tity described in paragraph (1) or (2). (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The the pilot program. (c) AWARDS.— term ‘‘neighborhood electric vehicle’’ means (B) MINIMUM REQUIREMENTS.—At a min- (1) IN GENERAL.—The Administrator shall a motor vehicle that— imum, the Secretary shall require that an seek, to the maximum extent practicable, to (A) meets the definition of a low-speed ve- application for a grant— ensure a broad geographic distribution of hicle (as defined in part 571 of title 49, Code (i) be submitted by the head of a State or grants under this section. of Federal Regulations); local government or a metropolitan trans- (2) PREFERENCES.—In making awards of (B) meets the definition of a zero-emission portation authority, or any combination grants under this section, the Administrator vehicle (as defined in section 86.1702–99 of thereof, and a registered participant in the shall give preference to proposals that— title 40, Code of Federal Regulations); Clean Cities Program of the Department of (A) will achieve the greatest reductions in (C) meets the requirements of Federal Energy; and emissions per proposal or per vehicle; or Motor Vehicle Safety Standard No. 500; and (ii) include— (B) involve the use of emissions control (D) has a maximum speed of not greater (I) a description of the project proposed in retrofit or conversion technology. than 25 miles per hour. the application, including how the project (d) CONDITIONS OF GRANT.—A grant shall be (5) PILOT PROGRAM.—The term ‘‘pilot pro- meets the requirements of this part; provided under this section on the conditions gram’’ means the competitive grant program (II) an estimate of the ridership or degree that— established under section 722. of use of the project; (1) combustion engine vehicles on which (6) SECRETARY.—The term ‘‘Secretary’’ (III) an estimate of the air pollution emis- hybrid retrofit or conversion technology are means the Secretary of Energy. sions reduced and fossil fuel displaced as a to be demonstrated— (7) ULTRA-LOW SULFUR DIESEL VEHICLE.— result of the project, and a plan to collect (A) with the retrofit or conversion tech- The term ‘‘ultra-low sulfur diesel vehicle’’ and disseminate environmental data, related nology applied will achieve low-emission means a vehicle manufactured in any of to the project to be funded under the grant, standards consistent with the Voluntary Na- model years 2004 through 2006 powered by a over the life of the project; tional Low Emission Vehicle Program for heavy-duty diesel engine that— (IV) a description of how the project will Light-Duty Vehicles and Light-Duty Trucks (A) is fueled by diesel fuel that contains be sustainable without Federal assistance (40 CFR Part 86) without model year restric- sulfur at not more than 15 parts per million; after the completion of the term of the tions; and and grant;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00090 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.055 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2243 (V) a complete description of the costs of (2) an identification of other applicants school bus’’ means a school bus that meets the project, including acquisition, construc- that submitted applications for the pilot pro- all of the requirements of this subtitle and is tion, operation, and maintenance costs over gram; and operated solely on ultra-low sulfur diesel the expected life of the project; (3) a description of the mechanisms used by fuel. (VI) a description of which costs of the the Secretary to ensure that the information SEC. 742. PROGRAM FOR REPLACEMENT OF CER- project will be supported by Federal assist- and knowledge gained by participants in the TAIN SCHOOL BUSES WITH CLEAN ance under this part; and pilot program are transferred among the SCHOOL BUSES. (VII) documentation to the satisfaction of pilot program participants and to other in- (a) ESTABLISHMENT.—The Administrator, the Secretary that diesel fuel containing sul- terested parties, including other applicants in consultation with the Secretary and other fur at not more than 15 parts per million is that submitted applications. appropriate Federal departments and agen- available for carrying out the project, and a (b) EVALUATION.—Not later than 3 years cies, shall establish a program for awarding commitment by the applicant to use such after the date of enactment of this Act, and grants on a competitive basis to eligible en- fuel in carrying out the project. annually thereafter until the pilot program tities for the replacement of existing school (2) PARTNERS.—An applicant under para- ends, the Secretary shall submit to Congress buses manufactured before model year 1991 graph (1) may carry out a project under the a report containing an evaluation of the ef- with alternative fuel school buses and ultra- pilot program in partnership with public and fectiveness of the pilot program, including— low sulfur diesel fuel school buses. private entities. (1) an assessment of the benefits to the en- (b) REQUIREMENTS.— (d) SELECTION CRITERIA.—In evaluating ap- vironment derived from the projects in- (1) IN GENERAL.—Not later than 90 days plications under the pilot program, the Sec- cluded in the pilot program; and after the date of enactment of this Act, the retary shall— (2) an estimate of the potential benefits to Administrator shall establish and publish in (1) consider each applicant’s previous expe- the environment to be derived from wide- the Federal Register grant requirements on rience with similar projects; and spread application of alternative fueled vehi- eligibility for assistance, and on implemen- (2) give priority consideration to applica- cles and ultra-low sulfur diesel vehicles. tation of the program established under sub- tions that— SEC. 724. AUTHORIZATION OF APPROPRIATIONS. section (a), including instructions for the (A) are most likely to maximize protection There are authorized to be appropriated to submission of grant applications and certifi- of the environment; the Secretary to carry out this part cation requirements to ensure compliance (B) demonstrate the greatest commitment $200,000,000, to remain available until ex- with this subtitle. on the part of the applicant to ensure fund- pended. (2) APPLICATION DEADLINES.—The require- ing for the proposed project and the greatest PART 3—FUEL CELL BUSES ments established under paragraph (1) shall likelihood that the project will be main- SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRA- require submission of grant applications not tained or expanded after Federal assistance TION. later than— under this part is completed; and (a) IN GENERAL.—The Secretary of Energy, (A) in the case of the first year of program (C) exceed the minimum requirements of in consultation with the Secretary of Trans- implementation, the date that is 180 days subsection (c)(1)(B)(ii). portation, shall establish a transit bus dem- after the publication of the requirements in (e) PILOT PROJECT REQUIREMENTS.— onstration program to make competitive, the Federal Register; and (1) MAXIMUM AMOUNT.—The Secretary shall merit-based awards for 5-year projects to (B) in the case of each subsequent year, not provide more than $20,000,000 in Federal demonstrate not more than 25 fuel cell tran- June 1 of the year. assistance under the pilot program to any sit buses (and necessary infrastructure) in 5 (c) ELIGIBLE RECIPIENTS.—A grant shall be applicant. geographically dispersed localities. awarded under this section only— (2) COST SHARING.—The Secretary shall not (b) PREFERENCE.—In selecting projects (1) to 1 or more local or State govern- provide more than 50 percent of the cost, in- under this section, the Secretary of Energy mental entities responsible for providing curred during the period of the grant, of any shall give preference to projects that are school bus service to 1 or more public school project under the pilot program. most likely to mitigate congestion and im- systems or responsible for the purchase of (3) MAXIMUM PERIOD OF GRANTS.—The Sec- prove air quality. school buses; retary shall not fund any applicant under (c) AUTHORIZATION OF APPROPRIATIONS.— (2) to 1 or more contracting entities that the pilot program for more than 5 years. There are authorized to be appropriated to provide school bus service to 1 or more pub- (4) DEPLOYMENT AND DISTRIBUTION.—The the Secretary of Energy to carry out this lic school systems, if the grant application is Secretary shall seek to the maximum extent section $10,000,000 for each of fiscal years 2006 submitted jointly with the 1 or more school practicable to ensure a broad geographic dis- through 2010. systems to be served by the buses, except tribution of project sites. Subtitle C—Clean School Buses that the application may provide that buses (5) TRANSFER OF INFORMATION AND KNOWL- SEC. 741. DEFINITIONS. purchased using funds awarded shall be EDGE.—The Secretary shall establish mecha- In this subtitle: owned, operated, and maintained exclusively nisms to ensure that the information and (1) ADMINISTRATOR.—The term ‘‘Adminis- by the 1 or more contracting entities; or knowledge gained by participants in the trator’’ means the Administrator of the En- (3) to a nonprofit school transportation as- pilot program are transferred among the vironmental Protection Agency. sociation representing private contracting pilot program participants and to other in- (2) ALTERNATIVE FUEL.—The term ‘‘alter- entities, if the association has notified and terested parties, including other applicants native fuel’’ means liquefied natural gas, received approval from the 1 or more school that submitted applications. compressed natural gas, liquefied petroleum systems to be served by the buses. (f) SCHEDULE.— gas, hydrogen, propane, or methanol or eth- (d) AWARD DEADLINES.— (1) PUBLICATION.—Not later than 90 days anol at no less than 85 percent by volume. (1) IN GENERAL.—Subject to paragraph (2), after the date of enactment of this Act, the (3) ALTERNATIVE FUEL SCHOOL BUS.—The the Administrator shall award a grant made Secretary shall publish in the Federal Reg- term ‘‘alternative fuel school bus’’ means a to a qualified applicant for a fiscal year— ister, Commerce Business Daily, and else- school bus that meets all of the require- (A) in the case of the first fiscal year of where as appropriate, a request for applica- ments of this subtitle and is operated solely program implementation, not later than the tions to undertake projects under the pilot on an alternative fuel. date that is 90 days after the application program. Applications shall be due not later (4) EMISSIONS CONTROL RETROFIT TECH- deadline established under subsection (b)(2); than 180 days after the date of publication of NOLOGY.—The term ‘‘emissions control ret- and the notice. rofit technology’’ means a particulate filter (B) in the case of each subsequent fiscal (2) SELECTION.—Not later than 180 days or other emissions control equipment that is year, not later than August 1 of the fiscal after the date by which applications for verified or certified by the Administrator or year. grants are due, the Secretary shall select by the California Air Resources Board as an ef- (2) INSUFFICIENT NUMBER OF QUALIFIED competitive, peer reviewed proposal, all ap- fective emission reduction technology when GRANT APPLICATIONS.—If the Administrator plications for projects to be awarded a grant installed on an existing school bus. does not receive a sufficient number of quali- under the pilot program. (5) IDLING.—The term ‘‘idling’’ means oper- fied grant applications to meet the require- (g) LIMIT ON FUNDING.—The Secretary shall ating an engine while remaining stationary ments of subsection (i)(1) for a fiscal year, provide not less than 20 nor more than 25 for more than approximately 15 minutes, ex- the Administrator shall award a grant made percent of the grant funding made available cept that the term does not apply to routine to a qualified applicant under subsection under this section for the acquisition of stoppages associated with traffic movement (i)(2) not later than September 30 of the fis- ultra-low sulfur diesel vehicles. or congestion. cal year. SEC. 723. REPORTS TO CONGRESS. (6) SECRETARY.—The term ‘‘Secretary’’ (e) TYPES OF GRANTS.— (a) INITIAL REPORT.—Not later than 60 days means the Secretary of Energy. (1) IN GENERAL.—A grant under this section after the date on which grants are awarded (7) ULTRA-LOW SULFUR DIESEL FUEL.—The shall be used for the replacement of school under this part, the Secretary shall submit term ‘‘ultra-low sulfur diesel fuel’’ means buses manufactured before model year 1991 to Congress a report containing— diesel fuel that contains sulfur at not more with alternative fuel school buses and ultra- (1) an identification of the grant recipients than 15 parts per million. low sulfur diesel fuel school buses. and a description of the projects to be fund- (8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL (2) NO ECONOMIC BENEFIT.—Other than the ed; BUS.—The term ‘‘ultra-low sulfur diesel fuel receipt of the grant, a recipient of a grant

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00091 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.055 H20PT1 H2244 CONGRESSIONAL RECORD — HOUSE April 20, 2005 under this section may not receive any eco- trogen and .01 grams per brake horsepower- (4) such sums as are necessary for each of nomic benefit in connection with the receipt hour of particulate matter. fiscal years 2008 and 2009. of the grant. (2) LIMITATIONS.—A bus shall not be ac- SEC. 743. DIESEL RETROFIT PROGRAM. (3) PRIORITY OF GRANT APPLICATIONS.—The quired under this section that emits non- (a) ESTABLISHMENT.—The Administrator, Administrator shall give priority to appli- methane hydrocarbons, oxides of nitrogen, or in consultation with the Secretary, shall es- cants that propose to replace school buses particulate matter at a rate greater than the tablish a program for awarding grants on a manufactured before model year 1977. best performing technology of the same class competitive basis to entities for the installa- (f) CONDITIONS OF GRANT.—A grant pro- of ultra-low sulfur diesel fuel school buses tion of retrofit technologies for diesel school vided under this section shall include the fol- commercially available at the time the buses. lowing conditions: grant is made. (b) ELIGIBLE RECIPIENTS.—A grant shall be (1) SCHOOL BUS FLEET.—All buses acquired (h) DEPLOYMENT AND DISTRIBUTION.—The awarded under this section only— with funds provided under the grant shall be Administrator shall— (1) to a local or State governmental entity operated as part of the school bus fleet for (1) seek, to the maximum extent prac- responsible for providing school bus service which the grant was made for a minimum of ticable, to achieve nationwide deployment of to 1 or more public school systems; 5 years. alternative fuel school buses and ultra-low (2) to 1 or more contracting entities that (2) USE OF FUNDS.—Funds provided under sulfur diesel fuel school buses through the provide school bus service to 1 or more pub- the grant may only be used— program under this section; and lic school systems, if the grant application is (A) to pay the cost, except as provided in (2) ensure a broad geographic distribution submitted jointly with the 1 or more school paragraph (3), of new alternative fuel school of grant awards, with a goal of no State re- systems that the buses will serve, except buses or ultra-low sulfur diesel fuel school ceiving more than 10 percent of the grant that the application may provide that buses buses, including State taxes and contract funding made available under this section purchased using funds awarded shall be fees associated with the acquisition of such for a fiscal year. owned, operated, and maintained exclusively (i) ALLOCATION OF FUNDS.— buses; and by the 1 or more contracting entities; or (1) IN GENERAL.—Subject to paragraph (2), (B) to provide— (3) to a nonprofit school transportation as- of the amount of grant funding made avail- (i) up to 20 percent of the price of the alter- sociation representing private contracting able to carry out this section for any fiscal native fuel school buses acquired, for nec- entities, if the association has notified and year, the Administrator shall use— essary alternative fuel infrastructure if the received approval from the 1 or more school (A) 70 percent for the acquisition of alter- infrastructure will only be available to the systems to be served by the buses. native fuel school buses or supporting infra- grant recipient; and (c) AWARDS.— structure; and (ii) up to 25 percent of the price of the al- (1) IN GENERAL.—The Administrator shall (B) 30 percent for the acquisition of ultra- ternative fuel school buses acquired, for nec- seek, to the maximum extent practicable, to low sulfur diesel fuel school buses. essary alternative fuel infrastructure if the ensure a broad geographic distribution of (2) INSUFFICIENT NUMBER OF QUALIFIED infrastructure will be available to the grant grants under this section. GRANT APPLICATIONS.—After the first fiscal recipient and to other bus fleets. (2) PREFERENCES.—In making awards of year in which this program is in effect, if the (3) GRANT RECIPIENT FUNDS.—The grant re- grants under this section, the Administrator Administrator does not receive a sufficient cipient shall be required to provide at least— shall give preference to proposals that— number of qualified grant applications to (A) in the case of a grant recipient de- (A) will achieve the greatest reductions in meet the requirements of subparagraph (A) scribed in paragraph (1) or (3) of subsection emissions of nonmethane hydrocarbons, ox- or (B) of paragraph (1) for a fiscal year, effec- (c), the lesser of— ides of nitrogen, or particulate matter per tive beginning on August 1 of the fiscal year, (i) an amount equal to 15 percent of the proposal or per bus; or the Administrator shall make the remaining total cost of each bus received; or (B) involve the use of emissions control funds available to other qualified grant ap- (ii) $15,000 per bus; and retrofit technology on diesel school buses plicants under this section. (B) in the case of a grant recipient de- that operate solely on ultra-low sulfur diesel (j) REDUCTION OF SCHOOL BUS IDLING.—Each scribed in subsection (c)(2), the lesser of— local educational agency (as defined in sec- fuel. (i) an amount equal to 20 percent of the tion 9101 of the Elementary and Secondary (d) CONDITIONS OF GRANT.—A grant shall be total cost of each bus received; or Education Act of 1965 (20 U.S.C. 7801)) that provided under this section on the conditions (ii) $20,000 per bus. receives Federal funds under the Elementary that— (4) ULTRA-LOW SULFUR DIESEL FUEL.—In the and Secondary Education Act of 1965 (20 (1) buses on which retrofit emissions-con- case of a grant recipient receiving a grant U.S.C. 6301 et seq.) is encouraged to develop trol technology are to be demonstrated— for ultra-low sulfur diesel fuel school buses, a policy, consistent with the health, safety, (A) will operate on ultra-low sulfur diesel the grant recipient shall be required to pro- and welfare of students and the proper oper- fuel where such fuel is reasonably available vide documentation to the satisfaction of the ation and maintenance of school buses, to re- or required for sale by State or local law or Administrator that diesel fuel containing duce the incidence of unnecessary school bus regulation; sulfur at not more than 15 parts per million idling at schools when picking up and un- (B) were manufactured in model year 1991 is available for carrying out the purposes of loading students. or later; and the grant, and a commitment by the appli- (k) ANNUAL REPORT.— (C) will be used for the transportation of cant to use such fuel in carrying out the pur- (1) IN GENERAL.—Not later than January 31 school children to and from school for a min- poses of the grant. of each year, the Administrator shall trans- imum of 5 years; (5) TIMING.—All alternative fuel school mit to Congress a report evaluating imple- (2) grant funds will be used for the pur- buses, ultra-low sulfur diesel fuel school mentation of the programs under this sec- chase of emission control retrofit tech- buses, or alternative fuel infrastructure ac- tion and section 743. nology, including State taxes and contract quired under a grant awarded under this sec- (2) COMPONENTS.—The reports shall include fees; and tion shall be purchased and placed in service a description of— (3) grant recipients will provide at least 15 as soon as practicable. (A) the total number of grant applications percent of the total cost of the retrofit, in- (g) BUSES.— received; cluding the purchase of emission control ret- (1) IN GENERAL.—Except as provided in (B) the number and types of alternative rofit technology and all necessary labor for paragraph (2), funding under a grant made fuel school buses, ultra-low sulfur diesel fuel installation of the retrofit. under this section for the acquisition of new school buses, and retrofitted buses requested (e) VERIFICATION.—Not later than 90 days alternative fuel school buses or ultra-low in grant applications; after the date of enactment of this Act, the sulfur diesel fuel school buses shall only be (C) grants awarded and the criteria used to Administrator shall publish in the Federal used to acquire school buses— select the grant recipients; Register procedures to verify— (A) with a gross vehicle weight of greater (D) certified engine emission levels of all (1) the retrofit emissions-control tech- than 14,000 pounds; buses purchased or retrofitted under the pro- nology to be demonstrated; (B) that are powered by a heavy duty en- grams under this section and section 743; (2) that buses powered by ultra-low sulfur gine; (E) an evaluation of the in-use emission diesel fuel on which retrofit emissions-con- (C) in the case of alternative fuel school level of buses purchased or retrofitted under trol technology are to be demonstrated will buses manufactured in model years 2004 the programs under this section and section operate on diesel fuel containing not more through 2006, that emit not more than 1.8 743; and than 15 parts per million of sulfur; and grams per brake horsepower-hour of non- (F) any other information the Adminis- (3) that grants are administered in accord- methane hydrocarbons and oxides of nitro- trator considers appropriate. ance with this section. gen and .01 grams per brake horsepower-hour (l) AUTHORIZATION OF APPROPRIATIONS.— (f) AUTHORIZATION OF APPROPRIATIONS.— of particulate matter; and There are authorized to be appropriated to There are authorized to be appropriated to (D) in the case of ultra-low sulfur diesel the Administrator to carry out this section, the Administrator to carry out this section, fuel school buses manufactured in model to remain available until expended— to remain available until expended— years 2004 through 2006, that emit not more (1) $45,000,000 for fiscal year 2005; (1) $20,000,000 for fiscal year 2005; than 2.5 grams per brake horsepower-hour of (2) $65,000,000 for fiscal year 2006; (2) $35,000,000 for fiscal year 2006; nonmethane hydrocarbons and oxides of ni- (3) $90,000,000 for fiscal year 2007; and (3) $45,000,000 for fiscal year 2007; and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00092 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.055 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2245 (4) such sums as are necessary for each of (4) the statutory authority on which the SEC. 756. REDUCTION OF ENGINE IDLING OF fiscal years 2008 and 2009. Administrator has based approval of the HEAVY-DUTY VEHICLES. SEC. 744. FUEL CELL SCHOOL BUSES. projects; (a) DEFINITIONS.—In this section: (a) ESTABLISHMENT.—The Secretary shall (5) an evaluation of how the resolution of (1) ADMINISTRATOR.—The term ‘‘Adminis- establish a program for entering into cooper- issues in approved projects could be used in trator’’ means the Administrator of the En- ative agreements— other projects; and vironmental Protection Agency. (1) with private sector fuel cell bus devel- (6) any other issues that the Administrator (2) ADVANCED TRUCK STOP ELECTRIFICATION opers for the development of fuel cell-pow- considers relevant to the trading and genera- SYSTEM.—The term ‘‘advanced truck stop ered school buses; and tion of mobile source emission reduction electrification system’’ means a stationary (2) subsequently, with not less than 2 units credits for use by stationary sources or for system that delivers heat, air conditioning, of local government using natural gas-pow- other purposes. electricity, and communications, and is ca- pable of providing verifiable and auditable ered school buses and such private sector SEC. 753. AVIATION FUEL CONSERVATION AND fuel cell bus developers to demonstrate the EMISSIONS. evidence of use of those services, to a heavy- duty vehicle and any occupants of the heavy- use of fuel cell-powered school buses. (a) IN GENERAL.—Not later than 60 days duty vehicle without relying on components (b) COST SHARING.—The non-Federal con- after the date of enactment of this Act, the mounted onboard the heavy-duty vehicle for tribution for activities funded under this sec- Administrator of the Federal Aviation Ad- delivery of those services. tion shall be not less than— ministration and the Administrator of the (3) AUXILIARY POWER UNIT.—The term ‘‘aux- (1) 20 percent for fuel infrastructure devel- Environmental Protection Agency shall iliary power unit’’ means an integrated sys- opment activities; and jointly initiate a study to identify— tem that— (2) 50 percent for demonstration activities (1) the impact of aircraft emissions on air (A) provides heat, air conditioning, engine and for development activities not described quality in nonattainment areas; and in paragraph (1). warming, and electricity to the factory-in- (2) ways to promote fuel conservation stalled components on a heavy-duty vehicle (c) REPORTS TO CONGRESS.—Not later than measures for aviation to— 3 years after the date of enactment of this as if the main drive engine of the heavy-duty (A) enhance fuel efficiency; and vehicle were running; and Act, the Secretary shall transmit to Con- (B) reduce emissions. gress a report that— (B) is certified by the Administrator under (b) FOCUS.—The study under subsection (a) (1) evaluates the process of converting nat- part 89 of title 40, Code of Federal Regula- shall focus on how air traffic management tions (or any successor regulation), as meet- ural gas infrastructure to accommodate fuel inefficiencies, such as aircraft idling at air- cell-powered school buses; and ing applicable emission standards. ports, result in unnecessary fuel burn and air (4) HEAVY-DUTY VEHICLE.—The term (2) assesses the results of the development emissions. and demonstration program under this sec- ‘‘heavy-duty vehicle’’ means a vehicle that— (c) REPORT.—Not later than 1 year after (A) has a gross vehicle weight rating great- tion. the date of the initiation of the study under (d) AUTHORIZATION OF APPROPRIATIONS.— er than 12,500 pounds; and subsection (a), the Administrator of the Fed- There are authorized to be appropriated to (B) is powered by a diesel engine. eral Aviation Administration and the Ad- the Secretary to carry out this section (5) IDLE REDUCTION TECHNOLOGY.—The term ministrator of the Environmental Protection $25,000,000 for the period of fiscal years 2005 ‘‘idle reduction technology’’ means an ad- through 2007. Agency shall jointly submit to the Com- vanced truck stop electrification system, mittee on Energy and Commerce and the Subtitle D—Miscellaneous auxiliary power unit, or other device or sys- Committee on Transportation and Infra- tem of devices that— SEC. 751. RAILROAD EFFICIENCY. structure of the House of Representatives (A) is used to reduce long-duration idling (a) ESTABLISHMENT.—The Secretary of En- and the Committee on Environment and of a heavy-duty vehicle; and ergy shall, in cooperation with the Secretary Public Works and the Committee on Com- of Transportation and the Administrator of (B) allows for the main drive engine or merce, Science, and Transportation of the auxiliary refrigeration engine of a heavy- the Environmental Protection Agency, es- Senate a report that— tablish a cost-shared, public-private research duty vehicle to be shut down. (1) describes the results of the study; and (6) LONG-DURATION IDLING.— partnership involving the Federal Govern- (2) includes any recommendations on ways ment, railroad carriers, locomotive manufac- (A) IN GENERAL.—The term ‘‘long-duration in which unnecessary fuel use and emissions idling’’ means the operation of a main drive turers and equipment suppliers, and the As- affecting air quality may be reduced— sociation of American Railroads, to develop engine or auxiliary refrigeration engine of a (A) without adversely affecting safety and heavy-duty vehicle, for a period greater than and demonstrate railroad locomotive tech- security and increasing individual aircraft nologies that increase fuel economy, reduce 15 consecutive minutes, at a time at which noise; and the main drive engine is not engaged in gear. emissions, and lower costs of operation. (B) while taking into account all aircraft (b) AUTHORIZATION OF APPROPRIATIONS.— (B) EXCLUSIONS.—The term ‘‘long-duration emissions and the impact of the emissions on There are authorized to be appropriated to idling’’ does not include the operation of a human health. the Secretary of Energy to carry out this main drive engine or auxiliary refrigeration section— SEC. 754. DIESEL FUELED VEHICLES. engine of a heavy-duty vehicle during a rou- (1) $25,000,000 for fiscal year 2006; (a) DEFINITION OF TIER 2 EMISSION STAND- tine stoppage associated with traffic move- (2) $35,000,000 for fiscal year 2007; and ARDS.—In this section, the term ‘‘tier 2 emis- ment or congestion. (3) $50,000,000 for fiscal year 2008. sion standards’’ means the motor vehicle (b) IDLE REDUCTION TECHNOLOGY BENEFITS, SEC. 752. MOBILE EMISSION REDUCTIONS TRAD- emission standards that apply to passenger PROGRAMS, AND STUDIES.— ING AND CREDITING. cars, light trucks, and larger passenger vehi- (1) IN GENERAL.—Not later than 90 days (a) IN GENERAL.—Not later than 180 days cles manufactured after the 2003 model year, after the date of enactment of this Act, the after the date of enactment of this Act, the as issued on February 10, 2000, by the Admin- Administrator shall— Administrator of the Environmental Protec- istrator of the Environmental Protection (A)(i) commence a review of the mobile tion Agency shall submit to Congress a re- Agency under sections 202 and 211 of the source air emission models of the Environ- port on the experience of the Administrator Clean Air Act (42 U.S.C. 7521, 7545). mental Protection Agency used under the with the trading of mobile source emission (b) DIESEL COMBUSTION AND AFTER-TREAT- Clean Air Act (42 U.S.C. 7401 et seq.) to deter- reduction credits for use by owners and oper- MENT TECHNOLOGIES.—The Secretary of En- mine whether the models accurately reflect ators of stationary source emission sources ergy shall accelerate efforts to improve die- the emissions resulting from long-duration to meet emission offset requirements within sel combustion and after-treatment tech- idling of heavy-duty vehicles and other vehi- a nonattainment area. nologies for use in diesel fueled motor vehi- cles and engines; and (b) CONTENTS.—The report shall describe— cles. (ii) update those models as the Adminis- (1) projects approved by the Administrator (c) GOALS.—The Secretary shall carry out trator determines to be appropriate; and that include the trading of mobile source subsection (b) with a view toward achieving (B)(i) commence a review of the emission emission reduction credits for use by sta- the following goals: reductions achieved by the use of idle reduc- tionary sources in complying with offset re- (1) Developing and demonstrating diesel tion technology; and quirements, including a description of— technologies that, not later than 2010, meet (ii) complete such revisions of the regula- (A) project and stationary sources loca- the following standards: tions and guidance of the Environmental tion; (A) Tier 2 emission standards. Protection Agency as the Administrator de- (B) volumes of emissions offset and traded; (B) The heavy-duty emissions standards of termines to be appropriate. (C) the sources of mobile emission reduc- 2007 that are applicable to heavy-duty vehi- (2) DEADLINE FOR COMPLETION.—Not later tion credits; and cles under regulations issued by the Admin- than 180 days after the date of enactment of (D) if available, the cost of the credits; istrator of the Environmental Protection this Act, the Administrator shall— (2) the significant issues identified by the Agency as of the date of enactment of this (A) complete the reviews under subpara- Administrator in consideration and approval Act. graphs (A)(i) and (B)(i) of paragraph (1); and of trading in the projects; (2) Developing the next generation of low- (B) prepare and make publicly available 1 (3) the requirements for monitoring and as- emission, high efficiency diesel engine tech- or more reports on the results of the reviews. sessing the air quality benefits of any ap- nologies, including homogeneous charge (3) DISCRETIONARY INCLUSIONS.—The re- proved project; compression ignition technology. views under subparagraphs (A)(i) and (B)(i) of

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00093 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.056 H20PT1 H2246 CONGRESSIONAL RECORD — HOUSE April 20, 2005 paragraph (1) and the reports under para- SEC. 757. BIODIESEL ENGINE TESTING PROGRAM. Subtitle E—Automobile Efficiency graph (2)(B) may address the potential fuel (a) IN GENERAL.—Not later that 180 days SEC. 771. AUTHORIZATION OF APPROPRIATIONS savings resulting from use of idle reduction after the date of enactment of this Act, the FOR IMPLEMENTATION AND EN- technology. Secretary shall initiate a partnership with FORCEMENT OF FUEL ECONOMY (4) IDLE REDUCTION DEPLOYMENT PRO- diesel engine, diesel fuel injection system, STANDARDS. GRAM.— and diesel vehicle manufacturers and diesel In addition to any other funds authorized (A) ESTABLISHMENT.— and biodiesel fuel providers, to include bio- by law, there are authorized to be appro- (i) IN GENERAL.—Not later than 90 days diesel testing in advanced diesel engine and priated to the National Highway Traffic after the date of enactment of this Act, the fuel system technology. Safety Administration to carry out its obli- Administrator, in consultation with the Sec- (b) SCOPE.—The program shall provide for gations with respect to average fuel economy retary of Transportation, shall establish a testing to determine the impact of biodiesel standards $2,000,000 for each of fiscal years program to support deployment of idle re- from different sources on current and future 2006 through 2010. duction technology. emission control technologies, with empha- SEC. 772. REVISED CONSIDERATIONS FOR DECI- (ii) PRIORITY.—The Administrator shall sis on— SIONS ON MAXIMUM FEASIBLE AV- give priority to the deployment of idle re- (1) the impact of biodiesel on emissions ERAGE FUEL ECONOMY. duction technology based on beneficial ef- warranty, in-use liability, and antitampering Section 32902(f) of title 49, United States fects on air quality and ability to lessen the provisions; Code, is amended to read as follows: emission of criteria air pollutants. (2) the impact of long-term use of biodiesel ‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE AVERAGE FUEL ECON- (B) FUNDING.— on engine operations; OMY.—When deciding maximum feasible av- (i) AUTHORIZATION OF APPROPRIATIONS.— (3) the options for optimizing these tech- There are authorized to be appropriated to nologies for both emissions and performance erage fuel economy under this section, the the Administrator to carry out subparagraph when switching between biodiesel and diesel Secretary of Transportation shall consider (A) $19,500,000 for fiscal year 2006, $30,000,000 fuel; and the following matters: for fiscal year 2007, and $45,000,000 for fiscal (4) the impact of using biodiesel in these ‘‘(1) Technological feasibility. year 2008. fueling systems and engines when used as a ‘‘(2) Economic practicability. ‘‘(3) The effect of other motor vehicle (ii) COST SHARING.—Subject to clause (iii), blend with 2006 Environmental Protection the Administrator shall require at least 50 Agency-mandated diesel fuel containing a standards of the Government on fuel econ- percent of the costs directly and specifically maximum of 15-parts-per-million sulfur con- omy. related to any project under this section to tent. ‘‘(4) The need of the United States to con- be provided from non-Federal sources. (c) REPORT.—Not later than 2 years after serve energy. ‘‘(5) The effects of fuel economy standards (iii) NECESSARY AND APPROPRIATE REDUC- the date of enactment of this Act, the Sec- on passenger automobiles, nonpassenger TIONS.—The Administrator may reduce the retary shall provide an interim report to non-Federal requirement under clause (ii) if Congress on the findings of the program, in- automobiles, and occupant safety. the Administrator determines that the re- cluding a comprehensive analysis of impacts ‘‘(6) The effects of compliance with average duction is necessary and appropriate to meet from biodiesel on engine operation for both fuel economy standards on levels of auto- the objectives of this section. existing and expected future diesel tech- mobile industry employment in the United States.’’. (5) IDLING LOCATION STUDY.— nologies, and recommendations for ensuring (A) IN GENERAL.—Not later than 90 days optimal emissions reductions and engine per- SEC. 773. EXTENSION OF MAXIMUM FUEL ECON- after the date of enactment of this Act, the formance with biodiesel. OMY INCREASE FOR ALTERNATIVE FUELED VEHICLES. Administrator, in consultation with the Sec- (d) AUTHORIZATION OF APPROPRIATIONS.— (a) MANUFACTURING INCENTIVES.—Section retary of Transportation, shall commence a There are authorized to be appropriated 32905 of title 49, United States Code, is study to analyze all locations at which $5,000,000 for each of fiscal years 2006 through amended— heavy-duty vehicles stop for long-duration 2010 to carry out this section. (e) DEFINITION.—For purposes of this sec- (1) in each of subsections (b) and (d), by idling, including— tion, the term ‘‘biodiesel’’ means a diesel striking ‘‘1993–2004’’ and inserting ‘‘1993– (i) truck stops; fuel substitute produced from nonpetroleum 2010’’; (ii) rest areas; renewable resources that meets the registra- (2) in subsection (f), by striking ‘‘2001’’ and (iii) border crossings; tion requirements for fuels and fuel additives inserting ‘‘2007’’; and (iv) ports; established by the Environmental Protection (3) in subsection (f)(1), by striking ‘‘2004’’ (v) transfer facilities; and Agency under section 211 of the Clean Air and inserting ‘‘2010’’. (vi) private terminals. Act (42 U.S.C. 7545) and that meets the Amer- (b) MAXIMUM FUEL ECONOMY INCREASE.— (B) DEADLINE FOR COMPLETION.—Not later ican Society for Testing and Materials Subsection (a)(1) of section 32906 of title 49, than 180 days after the date of enactment of D6751–02a Standard Specification for Bio- United States Code, is amended— this Act, the Administrator shall— diesel Fuel (B100) Blend Stock for Distillate (1) in subparagraph (A), by striking ‘‘the (i) complete the study under subparagraph Fuels. model years 1993–2004’’ and inserting ‘‘model (A); and years 1993–2010’’; and (ii) prepare and make publicly available 1 SEC. 758. HIGH OCCUPANCY VEHICLE EXCEP- TION. (2) in subparagraph (B), by striking ‘‘the or more reports of the results of the study. Notwithstanding section 102(a) of title 23, model years 2005–2008’’ and inserting ‘‘model (c) VEHICLE WEIGHT EXEMPTION.—Section United States Code, a State may permit a years 2011–2014’’. 127(a) of title 23, United States Code, is vehicle with fewer than 2 occupants to oper- SEC. 774. STUDY OF FEASIBILITY AND EFFECTS amended— ate in high occupancy vehicle lanes if the ve- OF REDUCING USE OF FUEL FOR (1) by designating the first through elev- hicle— AUTOMOBILES. enth sentences as paragraphs (1) through (1) is a dedicated vehicle (as defined in sec- (a) IN GENERAL.—Not later than 30 days (11), respectively; and tion 301 of the Energy Policy Act of 1992 (42 after the date of the enactment of this Act, (2) by adding at the end the following: U.S. 13211)); or the Administrator of the National Highway ‘‘(12) HEAVY DUTY VEHICLES.— (2) is a hybrid vehicle (as defined by the Traffic Safety Administration shall initiate ‘‘(A) IN GENERAL.—Subject to subpara- State for the purpose of this section). a study of the feasibility and effects of re- graphs (B) and (C), in order to promote re- SEC. 759. ULTRA-EFFICIENT ENGINE TECH- ducing by model year 2014, by a significant duction of fuel use and emissions because of NOLOGY FOR AIRCRAFT. percentage, the amount of fuel consumed by engine idling, the maximum gross vehicle (a) ULTRA-EFFICIENT ENGINE TECHNOLOGY automobiles. weight limit and the axle weight limit for PARTNERSHIP.—The Secretary of Energy (b) SUBJECTS OF STUDY.—The study under any heavy-duty vehicle equipped with an idle shall enter into a cooperative agreement this section shall include— reduction technology shall be increased by a with the National Aeronautics and Space Ad- (1) examination of, and recommendation of quantity necessary to compensate for the ad- ministration for the development of ultra-ef- alternatives to, the policy under current ditional weight of the idle reduction system. ficient engine technology for aircraft. Federal law of establishing average fuel ‘‘(B) MAXIMUM WEIGHT INCREASE.—The (b) PERFORMANCE OBJECTIVE.—The Sec- economy standards for automobiles and re- weight increase under subparagraph (A) shall retary of Energy shall establish the fol- quiring each automobile manufacturer to be not greater than 250 pounds. lowing performance objectives for the pro- comply with average fuel economy standards ‘‘(C) PROOF.—On request by a regulatory gram set forth in subsection (a): that apply to the automobiles it manufac- agency or law enforcement agency, the vehi- (1) A fuel efficiency increase of 10 percent. tures; cle operator shall provide proof (through (2) A reduction in the impact of landing (2) examination of how automobile manu- demonstration or certification) that— and takeoff nitrogen oxides emissions on facturers could contribute toward achieving ‘‘(i) the idle reduction technology is fully local air quality of 70 percent. the reduction referred to in subsection (a); functional at all times; and (c) AUTHORIZATION OF APPROPRIATIONS .— (3) examination of the potential of fuel cell ‘‘(ii) the 250-pound gross weight increase is There are authorized to be appropriated to technology in motor vehicles in order to de- not used for any purpose other than the use the Secretary of Energy for carrying out this termine the extent to which such technology of idle reduction technology described in section $45,000,000 for each of the fiscal years may contribute to achieving the reduction subparagraph (A).’’. 2006, 2007, 2008, 2009, and 2010. referred to in subsection (a); and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00094 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.056 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2247 (4) examination of the effects of the reduc- (4) advanced vehicle technologies, includ- (A) safe, economical, and environmentally tion referred to in subsection (a) on— ing— sound hydrogen fuel cells; (A) gasoline supplies; (A) engine and emission control systems; (B) fuel cells for light duty and other vehi- (B) the automobile industry, including (B) energy storage, electric propulsion, and cles; and sales of automobiles manufactured in the hybrid systems; (C) other technologies consistent with the United States; (C) automotive materials; and Department’s plan. (C) motor vehicle safety; and (D) other advanced vehicle technologies; (c) DEMONSTRATION.—In carrying out the (D) air quality. (5) storage of hydrogen or hydrogen-carrier programs under this section, the Secretary (c) REPORT.—The Administrator shall sub- fuels, including development of materials for shall fund a limited number of demonstra- mit to Congress a report on the findings, safe and economic storage in gaseous, liquid, tion projects, consistent with a determina- conclusion, and recommendations of the or solid form at refueling facilities and on- tion of the maturity, cost-effectiveness, and study under this section by not later than 1 board vehicles; environmental impacts of technologies sup- year after the date of the enactment of this (6) development of safe, durable, afford- porting each project. In selecting projects Act. able, and efficient fuel cells, including fuel- under this subsection, the Secretary shall, to TITLE VIII—HYDROGEN flexible fuel cell power systems, improved the extent practicable and in the public in- SEC. 801. DEFINITIONS. manufacturing processes, high-temperature terest, select projects that— In this title: membranes, cost-effective fuel processing for (1) involve using hydrogen and related (1) ADVISORY COMMITTEE.—The term ‘‘Advi- natural gas, fuel cell stack and system reli- products at existing facilities or installa- sory Committee’’ means the Hydrogen Tech- ability, low temperature operation, and cold tions, such as existing office buildings, mili- nical and Fuel Cell Advisory Committee es- start capability; tary bases, vehicle fleet centers, transit bus tablished under section 805. (7) development, after consultation with authorities, or units of the National Park (2) DEPARTMENT.—The term ‘‘Department’’ the private sector, of necessary codes and System; means the Department of Energy. standards (including international codes and (2) depend on reliable power from hydrogen (3) FUEL CELL.—The term ‘‘fuel cell’’ means standards and voluntary consensus standards to carry out essential activities; a device that directly converts the chemical adopted in accordance with OMB Circular A– (3) lead to the replication of hydrogen energy of a fuel and an oxidant into elec- 119) and safety practices for the production, technologies and draw such technologies into tricity by an electrochemical process taking distribution, storage, and use of hydrogen, the marketplace; place at separate electrodes in the device. hydrogen-carrier fuels, and related products; (4) include vehicle, portable, and sta- (4) INFRASTRUCTURE.—The term ‘‘infra- (8) a public education program to develop tionary demonstrations of fuel cell and hy- structure’’ means the equipment, systems, or improved knowledge and acceptability of hy- drogen-based energy technologies; facilities used to produce, distribute, deliver, drogen-based systems; and (5) address the interdependency of demand or store hydrogen. (9) the ability of domestic automobile for hydrogen fuel cell applications and hy- (5) LIGHT DUTY VEHICLE.—The term ‘‘light manufacturers to manufacture commercially drogen fuel infrastructure; duty vehicle’’ means a car or truck classified available competitive hybrid vehicle tech- (6) raise awareness of hydrogen technology by the Department of Transportation as a nologies in the United States. among the public; Class I or IIA vehicle. (b) PROGRAM GOALS.— (7) facilitate identification of an optimum (6) SECRETARY.—The term ‘‘Secretary’’ (1) VEHICLES.—For vehicles, the goals of technology among competing alternatives; means the Secretary of Energy. the program are— (8) address distributed generation using re- SEC. 802. PLAN. (A) to enable a commitment by auto- newable sources; and Not later than 6 months after the date of makers no later than year 2015 to offer safe, (9) address applications specific to rural or enactment of this Act, the Secretary shall affordable, and technically viable hydrogen remote locations, including isolated villages transmit to Congress a coordinated plan for fuel cell vehicles in the mass consumer mar- and islands, the National Park System, and the programs described in this title and any ket; and tribal entities. other programs of the Department that are directly related to fuel cells or hydrogen. (B) to enable production, delivery, and ac- The Secretary shall give preference to The plan shall describe, at a minimum— ceptance by consumers of model year 2020 projects which address multiple elements (1) the agenda for the next 5 years for the hydrogen fuel cell and other hydrogen-pow- contained in paragraphs (1) through (9). programs authorized under this title, includ- ered vehicles that will have— (d) DEPLOYMENT.—In carrying out the pro- ing the agenda for each activity enumerated (i) a range of at least 300 miles; grams under this section, the Secretary in section 803(a); (ii) improved performance and ease of driv- shall, in partnership with the private sector, (2) the types of entities that will carry out ing; conduct activities to facilitate the deploy- the activities under this title and what role (iii) safety and performance comparable to ment of hydrogen energy and energy infra- each entity is expected to play; vehicle technologies in the market; and structure, fuel cells, and advanced vehicle (3) the milestones that will be used to (iv) when compared to light duty vehicles technologies. evaluate the programs for the next 5 years; in model year 2003— (e) FUNDING.— (4) the most significant technical and non- (I) fuel economy that is substantially high- (1) IN GENERAL.—The Secretary shall carry technical hurdles that stand in the way of er; out the programs under this section using a achieving the goals described in section (II) substantially lower emissions of air competitive, merit-based review process and 803(b), and how the programs will address pollutants; and consistent with the generally applicable Fed- those hurdles; and (III) equivalent or improved vehicle fuel eral laws and regulations governing awards (5) the policy assumptions that are im- system crash integrity and occupant protec- of financial assistance, contracts, or other plicit in the plan, including any assumptions tion. agreements. that would affect the sources of hydrogen or (2) HYDROGEN ENERGY AND ENERGY INFRA- (2) RESEARCH CENTERS.—Activities under the marketability of hydrogen-related prod- STRUCTURE.—For hydrogen energy and en- this section may be carried out by funding ucts. ergy infrastructure, the goals of the program nationally recognized university-based or SEC. 803. PROGRAMS. are to enable a commitment not later than Federal laboratory research centers. (a) ACTIVITIES.—The Secretary, in partner- 2015 that will lead to infrastructure by 2020 (f) COST SHARING.— ship with the private sector, shall conduct that will provide— (1) RESEARCH AND DEVELOPMENT.—Except programs to address— (A) safe and convenient refueling; as otherwise provided in this title, for re- (1) production of hydrogen from diverse en- (B) improved overall efficiency; search and development programs carried ergy sources, including— (C) widespread availability of hydrogen out under this title the Secretary shall re- (A) fossil fuels, which may include carbon from domestic energy sources through— quire a commitment from non-Federal capture and sequestration; (i) production, with consideration of emis- sources of at least 20 percent of the cost of (B) hydrogen-carrier fuels (including eth- sions levels; the project. The Secretary may reduce or anol and methanol); (ii) delivery, including transmission by eliminate the non-Federal requirement (C) renewable energy resources, including pipeline and other distribution methods for under this paragraph if the Secretary deter- biomass; and hydrogen; and mines that the research and development is (D) nuclear energy; (iii) storage, including storage in surface of a basic or fundamental nature or involves (2) use of hydrogen for commercial, indus- transportation vehicles; technical analyses or educational activities. trial, and residential electric power genera- (D) hydrogen for fuel cells, internal com- (2) DEMONSTRATION AND COMMERCIAL APPLI- tion; bustion engines, and other energy conversion CATION.—Except as otherwise provided in (3) safe delivery of hydrogen or hydrogen- devices for portable, stationary, and trans- this title, the Secretary shall require at carrier fuels, including— portation applications; and least 50 percent of the costs directly and spe- (A) transmission by pipeline and other dis- (E) other technologies consistent with the cifically related to any demonstration or tribution methods; and Department’s plan. commercial application project under this (B) convenient and economic refueling of (3) FUEL CELLS.—The goals for fuel cells title to be provided from non-Federal vehicles either at central refueling stations and their portable, stationary, and transpor- sources. The Secretary may reduce the non- or through distributed on-site generation; tation applications are to enable— Federal requirement under this paragraph if

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00095 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.056 H20PT1 H2248 CONGRESSIONAL RECORD — HOUSE April 20, 2005 the Secretary determines that the reduction SEC. 805. ADVISORY COMMITTEE. the review, the Secretary shall transmit the is necessary and appropriate considering the (a) ESTABLISHMENT.—The Hydrogen Tech- review to Congress along with a plan to im- technological risks involved in the project nical and Fuel Cell Advisory Committee is plement the review’s recommendations or an and is necessary to meet the objectives of established to advise the Secretary on the explanation for the reasons that a rec- this title. programs and activities under this title. ommendation will not be implemented. (3) CALCULATION OF AMOUNT.—In calcu- (b) MEMBERSHIP.— SEC. 807. MISCELLANEOUS PROVISIONS. lating the amount of the non-Federal com- (1) MEMBERS.—The Advisory Committee (a) REPRESENTATION.—The Secretary may mitment under paragraph (1) or (2), the Sec- shall be comprised of not fewer than 12 nor represent the United States interests with retary may include personnel, services, more than 25 members. The members shall respect to activities and programs under this equipment, and other resources. be appointed by the Secretary to represent title, in coordination with the Department of (4) SIZE OF NON-FEDERAL SHARE.—The Sec- domestic industry, academia, professional Transportation, the National Institute of retary may consider the size of the non-Fed- societies, government agencies, Federal lab- Standards and Technology, and other rel- eral share in selecting projects. oratories, previous advisory panels, and fi- evant Federal agencies, before governments (g) DISCLOSURE.—Section 623 of the Energy nancial, environmental, and other appro- and nongovernmental organizations includ- Policy Act of 1992 (42 U.S.C. 13293) relating to priate organizations based on the Depart- ing— the protection of information shall apply to ment’s assessment of the technical and other (1) other Federal, State, regional, and local projects carried out through grants, coopera- qualifications of committee members and governments and their representatives; tive agreements, or contracts under this the needs of the Advisory Committee. (2) industry and its representatives, includ- title. (2) TERMS.—The term of a member of the ing members of the energy and transpor- SEC. 804. INTERAGENCY TASK FORCE. Advisory Committee shall not be more than tation industries; and (a) ESTABLISHMENT.—Not later than 120 3 years. The Secretary may appoint members (3) in consultation with the Department of days after the date of enactment of this Act, of the Advisory Committee in a manner that State, foreign governments and their rep- the President shall establish an interagency allows the terms of the members serving at resentatives including international organi- task force chaired by the Secretary with rep- any time to expire at spaced intervals so as zations. resentatives from each of the following: to ensure continuity in the functioning of (b) REGULATORY AUTHORITY.—Nothing in (1) The Office of Science and Technology the Advisory Committee. A member of the this title shall be construed to alter the reg- Policy within the Executive Office of the Advisory Committee whose term is expiring ulatory authority of the Department. President. may be reappointed. SEC. 808. SAVINGS CLAUSE. (2) The Department of Transportation. (3) CHAIRPERSON.—The Advisory Com- Nothing in this title shall be construed to (3) The Department of Defense. mittee shall have a chairperson, who is elect- affect the authority of the Secretary of (4) The Department of Commerce (includ- ed by the members from among their num- Transportation that may exist prior to the ing the National Institute of Standards and ber. date of enactment of this Act with respect Technology). (c) REVIEW.—The Advisory Committee to— (5) The Department of State. shall review and make recommendations to (1) research into, and regulation of, hydro- (6) The Environmental Protection Agency. the Secretary on— gen-powered vehicles fuel systems integrity, (7) The National Aeronautics and Space (1) the implementation of programs and ac- standards, and safety under subtitle VI of Administration. tivities under this title; title 49, United States Code; (8) Other Federal agencies as the Secretary (2) the safety, economical, and environ- (2) regulation of hazardous materials determines appropriate. mental consequences of technologies for the transportation under chapter 51 of title 49, (b) DUTIES.— production, distribution, delivery, storage, United States Code; (1) PLANNING.—The interagency task force or use of hydrogen energy and fuel cells; and (3) regulation of pipeline safety under shall work toward— (3) the plan under section 802. chapter 601 of title 49, United States Code; (A) a safe, economical, and environ- (d) RESPONSE.— (4) encouragement and promotion of re- mentally sound fuel infrastructure for hy- (1) CONSIDERATION OF RECOMMENDATIONS.— search, development, and deployment activi- drogen and hydrogen-carrier fuels, including The Secretary shall consider, but need not ties relating to advanced vehicle tech- an infrastructure that supports buses and adopt, any recommendations of the Advisory nologies under section 5506 of title 49, United other fleet transportation; Committee under subsection (c). States Code; (B) fuel cells in government and other ap- (2) BIENNIAL REPORT.—The Secretary shall (5) regulation of motor vehicle safety plications, including portable, stationary, transmit a biennial report to Congress de- under chapter 301 of title 49, United States and transportation applications; scribing any recommendations made by the Code; (C) distributed power generation, including Advisory Committee since the previous re- (6) automobile fuel economy under chapter the generation of combined heat, power, and port. The report shall include a description 329 of title 49, United States Code; or clean fuels including hydrogen; of how the Secretary has implemented or (7) representation of the interests of the (D) uniform hydrogen codes, standards, and plans to implement the recommendations, or United States with respect to the activities safety protocols; and an explanation of the reasons that a rec- and programs under the authority of title 49, (E) vehicle hydrogen fuel system integrity ommendation will not be implemented. The United States Code. safety performance. report shall be transmitted along with the SEC. 809. AUTHORIZATION OF APPROPRIATIONS. (2) ACTIVITIES.—The interagency task force President’s budget proposal. There are authorized to be appropriated to may organize workshops and conferences, (e) SUPPORT.—The Secretary shall provide the Secretary to carry out this title, in addi- may issue publications, and may create data- resources necessary in the judgment of the tion to any amounts made available for bases to carry out its duties. The inter- Secretary for the Advisory Committee to these purposes under other Acts— agency task force shall— carry out its responsibilities under this title. (1) $546,000,000 for fiscal year 2006; (A) foster the exchange of generic, non- SEC. 806. EXTERNAL REVIEW. (2) $750,000,000 for fiscal year 2007; proprietary information and technology (a) PLAN.—The Secretary shall enter into (3) $850,000,000 for fiscal year 2008; among industry, academia, and government; an arrangement with the National Academy (4) $900,000,000 for fiscal year 2009; and (B) develop and maintain an inventory and of Sciences to review the plan prepared (5) $1,000,000,000 for fiscal year 2010. assessment of hydrogen, fuel cells, and other under section 802, which shall be completed SEC. 810. SOLAR AND WIND TECHNOLOGIES. advanced technologies, including the com- not later than 6 months after the Academy (a) SOLAR ENERGY TECHNOLOGIES.—The mercial capability of each technology for the receives the plan. Not later than 45 days Secretary shall— economic and environmentally safe produc- after receiving the review, the Secretary (1) prepare a detailed roadmap for carrying tion, distribution, delivery, storage, and use shall transmit the review to Congress along out the provisions in this subtitle related to of hydrogen; with a plan to implement the review’s rec- solar energy technologies and for imple- (C) integrate technical and other informa- ommendations or an explanation of the rea- menting the recommendations related to tion made available as a result of the pro- sons that a recommendation will not be im- solar energy technologies that are included grams and activities under this title; plemented. in the report transmitted under subsection (D) promote the marketplace introduction (b) ADDITIONAL REVIEW.—The Secretary (c); of infrastructure for hydrogen fuel vehicles; shall enter into an arrangement with the Na- (2) provide for the establishment of 5 and tional Academy of Sciences under which the projects in geographic areas that are region- (E) conduct an education program to pro- Academy will review the programs under ally and climatically diverse to demonstrate vide hydrogen and fuel cell information to section 803 during the fourth year following the production of hydrogen at solar energy potential end-users. the date of enactment of this Act. The Acad- facilities, including one demonstration (c) AGENCY COOPERATION.—The heads of all emy’s review shall include the research pri- project at a national laboratory or institu- agencies, including those whose agencies are orities and technical milestones, and evalu- tion of higher education; not represented on the interagency task ate the progress toward achieving them. The (3) establish a research and development force, shall cooperate with and furnish infor- review shall be completed not later than 5 program— mation to the interagency task force, the years after the date of enactment of this (A) to develop optimized concentrating Advisory Committee, and the Department. Act. Not later than 45 days after receiving solar power devices that may be used for the

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production of both electricity and hydrogen; (e) DEFINITIONS.—For purposes of this sec- (I) National Energy Technology Labora- and tion— tory. (B) to evaluate the use of thermochemical (1) the term ‘‘concentrating solar power de- (J) National Renewable Energy Labora- cycles for hydrogen production at the tem- vices’’ means devices that concentrate the tory. peratures attainable with concentrating power of the sun by reflection or refraction (K) Oak Ridge National Laboratory. solar power devices; to improve the efficiency of a photovoltaic (L) Pacific Northwest National Labora- (4) coordinate with activities sponsored by or thermal generation process; tory. the Department of Energy’s Office of Nuclear (2) the term ‘‘institution of higher edu- (M) Princeton Plasma Physics Laboratory. Energy, Science, and Technology on high- cation’’ has the meaning given to that term (N) Sandia National Laboratories. temperature materials, thermochemical cy- in section 101(a) of the Higher Education Act (O) Savannah River National Laboratory. cles, and economic issues related to solar en- of 1965 (20 U.S.C. 1001(a)); (P) Stanford Linear Accelerator Center. ergy; (3) the term ‘‘minority institution’’ has the (Q) Thomas Jefferson National Accelerator (5) provide for the construction and oper- meaning given to that term in section 365 of Facility. ation of new concentrating solar power de- the Higher Education Act of 1965 (20 U.S.C. (7) RENEWABLE ENERGY.—The term ‘‘renew- vices or solar power cogeneration facilities 1067k); able energy’’ means energy from wind, sun- that produce hydrogen either concurrently (4) the term ‘‘part B institution’’ has the light, the flow of water, heat from the Earth, with, or independently of, the production of meaning given to that term in section 322 of or biomass that can be converted into a usa- electricity; the Higher Education Act of 1965 (20 U.S.C. ble form such as process heat, electricity, (6) support existing facilities and research 1061); and fuel, or space heat. programs dedicated to the development and (5) the term ‘‘photovoltaic devices’’ means (8) SECRETARY.—The term ‘‘Secretary’’ advancement of concentrating solar power devices that convert light directly into elec- means the Secretary of Energy. devices; and tricity through a solid-state, semiconductor (9) STATE.—The term ‘‘State’’ means any of (7) establish a program— process. the several States, the District of Columbia, (A) to research and develop methods that TITLE IX—RESEARCH AND DEVELOPMENT the Commonwealth of Puerto Rico, the use electricity from photovoltaic devices for SEC. 900. SHORT TITLE; DEFINITIONS. United States Virgin Islands, Guam, Amer- the onsite production of hydrogen, such that (a) SHORT TITLE.—This title may be cited ican Samoa, the Northern Mariana Islands, no intermediate transmission or distribution as the ‘‘Energy Research, Development, and any other commonwealth, territory, or infrastructure is required or used and future Demonstration, and Commercial Application possession of the United States. demand growth may be accommodated; Act of 2005’’. (10) UNIVERSITY.—The term ‘‘university’’ (B) to evaluate the economics of small- (b) DEFINITIONS.—For purposes of this title: has the meaning given the term ‘‘institution scale electrolysis for hydrogen production; (1) APPLIED PROGRAMS.—The term ‘‘applied of higher education’’ in section 101 of the and programs’’ means the research, development, Higher Education Act of 1965 (20 U.S.C. 1001). (C) to research the potential of modular demonstration, and commercial application (11) USER FACILITY.—The term ‘‘user facil- photovoltaic devices for the development of programs of the Department concerning en- ity’’ means a research and development fa- a hydrogen infrastructure, the security im- ergy efficiency, renewable energy, nuclear cility supported, in whole or in part, by De- plications of a hydrogen infrastructure, and energy, fossil energy, and electricity trans- partmental funds that is open, at a min- the benefits potentially derived from a hy- mission and distribution. imum, to all qualified United States re- drogen infrastructure. (2) BIOMASS.—The term ‘‘biomass’’ means— searchers. (b) WIND ENERGY TECHNOLOGIES.—The Sec- (A) any organic material grown for the Subtitle A—Science Programs retary shall— purpose of being converted to energy; SEC. 901. OFFICE OF SCIENCE PROGRAMS. (1) prepare a detailed roadmap for carrying (B) any organic byproduct of agriculture (a) IN GENERAL.—The Secretary shall con- out the provisions in this subtitle related to (including wastes from food production and duct, through the Office of Science, pro- wind energy technologies and for imple- processing) that can be converted into en- grams of research, development, demonstra- menting the recommendations related to ergy; or tion, and commercial application in high en- wind energy technologies that are included (C) any waste material that can be con- ergy physics, nuclear physics, biological and in the report transmitted under subsection verted to energy, is segregated from other environmental research, basic energy (c); and waste materials, and is derived from— sciences, advanced scientific computing re- (2) provide for the establishment of 5 (i) any of the following forest-related re- search, and fusion energy sciences, including projects in geographic areas that are region- sources: mill residues, precommercial activities described in this subtitle. The pro- ally and climatically diverse to demonstrate thinnings, slash, brush, or otherwise non- grams shall include support for facilities and the production of hydrogen at existing wind merchantable material; or infrastructure, education, outreach, informa- energy facilities, including one demonstra- (ii) wood waste materials, including waste tion, analysis, and coordination activities. tion project at a national laboratory or in- pallets, crates, dunnage, manufacturing and (b) RARE ISOTOPE ACCELERATOR.— stitution of higher education. construction wood wastes (other than pres- (1) ESTABLISHMENT.—The Secretary shall (c) PROGRAM SUPPORT.—The Secretary sure-treated, chemically-treated, or painted construct and operate a Rare Isotope Accel- shall support research programs at institu- wood wastes), and landscape or right-of-way erator. The Secretary shall commence con- tions of higher education for the develop- tree trimmings, but not including municipal struction no later than September 30, 2008. ment of solar energy technologies and wind solid waste, gas derived from the biodegrada- (2) AUTHORIZATION OF APPROPRIATIONS.— energy technologies for the production of hy- tion of municipal solid waste, or paper that There are authorized to be appropriated to drogen. The research programs supported is commonly recycled. the Secretary such sums as may be nec- under this subsection shall— (3) DEPARTMENT.—The term ‘‘Department’’ essary to carry out this subsection. The Sec- (1) enhance fellowship and faculty assist- means the Department of Energy. retary shall not spend more than ance programs; (4) DEPARTMENTAL MISSION.—The term ‘‘de- $1,100,000,000 in Federal funds for all activi- (2) provide support for fundamental re- partmental mission’’ means any of the func- ties associated with the Rare Isotope Accel- search; tions vested in the Secretary of Energy by erator prior to operation. (3) encourage collaborative research among the Department of Energy Organization Act SEC. 902. SYSTEMS BIOLOGY PROGRAM. industry, national laboratories, and institu- (42 U.S.C. 7101 et seq.) or other law. (a) PROGRAM.— tions of higher education; (5) INSTITUTION OF HIGHER EDUCATION.—The (1) ESTABLISHMENT.—The Secretary shall (4) support communication and outreach; term ‘‘institution of higher education’’ has establish a research, development, and dem- and the meaning given that term in section onstration program in genetics, protein (5) to the greatest extent possible— 101(a) of the Higher Education Act of 1965 (20 science, and computational biology to sup- (A) be located in geographic areas that are U.S.C. 1001(a)). port the energy, national security, and envi- regionally and climatically diverse; and (6) NATIONAL LABORATORY.—The term ‘‘Na- ronmental missions of the Department. (B) be located at part B institutions, mi- tional Laboratory’’ means any of the fol- (2) GRANTS.—The program shall support in- nority institutions, and institutions of high- lowing laboratories owned by the Depart- dividual researchers and multidisciplinary er education located in States participating ment: teams of researchers through competitive, in the Experimental Program to Stimulate (A) Ames Laboratory. merit-reviewed grants. Competitive Research of the Department of (B) Argonne National Laboratory. (3) CONSULTATION.—In carrying out the pro- Energy. (C) Brookhaven National Laboratory. gram, the Secretary shall consult with other (d) INSTITUTIONS OF HIGHER EDUCATION AND (D) Fermi National Accelerator Labora- Federal agencies that conduct genetic and NATIONAL LABORATORY INTERACTIONS.—In tory. protein research. conjunction with the programs supported (E) Idaho National Laboratory. (b) GOALS.—The program shall have the under this section, the Secretary shall de- (F) Lawrence Berkeley National Labora- goal of developing technologies and methods velop sabbatical, fellowship, and visiting sci- tory. based on the biological functions of genomes, entist programs to encourage national lab- (G) Lawrence Livermore National Labora- microbes, and plants that— oratories and institutions of higher edu- tory. (1) can facilitate the production of fuels, cation to share and exchange personnel. (H) Los Alamos National Laboratory. including hydrogen;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00097 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.056 H20PT1 H2250 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (2) convert carbon dioxide to organic car- matics and the activities authorized by the (iii) ensure that the United States will not bon; Department of Energy High-End Computing be financially responsible for cost overruns (3) detoxify soils and water, including at Revitalization Act of 2004 (15 U.S.C. 5541 et in components manufactured in other ITER Departmental facilities, contaminated with seq.). The Secretary shall carry out this pro- participating countries; heavy metals and radiological materials; and gram with the goal of supporting depart- (iv) guarantee the United States full access (4) address other Department missions as mental missions and providing the high-per- to all data generated by ITER; identified by the Secretary. formance computational, networking, and (v) enable United States researchers to (c) PLAN.— workforce resources that are required for propose and carry out an equitable share of (1) DEVELOPMENT OF PLAN.—Not later than world leadership in science. the experiments at ITER; 1 year after the date of enactment of this SEC. 906. FUSION ENERGY SCIENCES PROGRAM. (vi) provide the United States with a role Act, the Secretary shall prepare and trans- (a) DECLARATION OF POLICY.—It shall be the in all collective decisionmaking related to mit to Congress a research plan describing policy of the United States to conduct re- ITER; and how the program authorized pursuant to this search, development, demonstration, and (vii) describe the process for discontinuing section will be undertaken to accomplish the commercial application to provide for the or decommissioning ITER and any United program goals established in subsection (b). scientific, engineering, and commercial in- States role in that process. (2) REVIEW OF PLAN.—The Secretary shall frastructure necessary to ensure that the (3) PLAN.—The Secretary, in consultation contract with the National Academy of United States is competitive with other na- with the Fusion Energy Sciences Advisory Sciences to review the research plan devel- tions in providing fusion energy for its own Committee, shall develop a plan for the par- oped under this subsection. The Secretary needs and the needs of other nations, includ- ticipation of United States scientists in shall transmit the review to Congress not ing by demonstrating electric power or hy- ITER that shall include the United States later than 18 months after transmittal of the drogen production for the United States en- research agenda for ITER, methods to evalu- research plan under paragraph (1), along ergy grid utilizing fusion energy at the ear- ate whether ITER is promoting progress to- with the Secretary’s response to the rec- liest date possible. ward making fusion a reliable and affordable ommendations contained in the review. (b) PLANNING.— source of power, and a description of how (d) USER FACILITIES AND ANCILLARY EQUIP- (1) IN GENERAL.—Not later than 180 days work at ITER will relate to other elements MENT.—Within the funds authorized to be ap- after the date of enactment of this Act, the of the United States fusion program. The propriated pursuant to this subtitle, the Secretary shall transmit to Congress a plan, Secretary shall request a review of the plan amounts specified under section 910(b)(1), with proposed cost estimates, budgets, and by the National Academy of Sciences. (c)(1), (d)(1), (e)(1), and (f)(1) shall be avail- lists of potential international partners, for (4) LIMITATION.—No Federal funds shall be able for projects to develop, plan, construct, the implementation of the policy described expended for the construction of ITER until acquire, or operate special equipment, in- in subsection (a). The plan shall ensure the Secretary has transmitted to Congress— strumentation, or facilities, including user that— (A) the agreement negotiated pursuant to facilities, for researchers conducting re- (A) existing fusion research facilities are paragraph (2) and 120 days have elapsed since search, development, demonstration, and more fully utilized; that transmission; commercial application in systems biology (B) fusion science, technology, theory, ad- (B) a report describing the management and proteomics and associated biological dis- vanced computation, modeling, and simula- structure of ITER and providing a fixed dol- ciplines. tion are strengthened; lar estimate of the cost of United States par- (e) PROHIBITION ON BIOMEDICAL AND HUMAN (C) new magnetic and inertial fusion re- ticipation in the construction of ITER, and CELL AND HUMAN SUBJECT RESEARCH.— search and development facilities are se- 120 days have elapsed since that trans- (1) NO BIOMEDICAL RESEARCH.—In carrying lected based on scientific innovation, cost ef- mission; out the program under this section, the Sec- fectiveness, and their potential to advance (C) a report describing how United States retary shall not conduct biomedical re- the goal of practical fusion energy at the participation in ITER will be funded without search. earliest date possible, and those that are se- reducing funding for other programs in the (2) LIMITATIONS.—Nothing in this section lected are funded at a cost-effective rate; Office of Science, including other fusion pro- shall authorize the Secretary to conduct any (D) communication of scientific results grams, and 60 days have elapsed since that research or demonstrations— and methods between the fusion energy transmission; and (A) on human cells or human subjects; or science community and the broader sci- (D) the plan required by paragraph (3) (but (B) designed to have direct application entific and technology communities is im- not the National Academy of Sciences review with respect to human cells or human sub- proved; of that plan), and 60 days have elapsed since jects. (E) inertial confinement fusion facilities that transmission. SEC. 903. CATALYSIS RESEARCH AND DEVELOP- are utilized to the extent practicable for the (5) ALTERNATIVE TO ITER.—If at any time MENT PROGRAM. purpose of inertial fusion energy research during the negotiations on ITER, the Sec- (a) ESTABLISHMENT.—The Secretary shall and development; and retary determines that construction and op- conduct a program of research and develop- (F) attractive alternative inertial and eration of ITER is unlikely or infeasible, the ment in catalysis science, including efforts magnetic fusion energy approaches are more Secretary shall send to Congress, as part of to— fully explored. the budget request for the following year, a (1) enable molecular-level catalyst design (2) COSTS AND SCHEDULES.—Such plan shall plan for implementing a domestic burning by coupling experimental and computational also address the status of and, to the degree plasma experiment including costs and approaches; possible, costs and schedules for— schedules for such a plan. The Secretary (2) enable nanoscale, high-throughput syn- (A) the design and implementation of shall refine such plan in full consultation thesis, assay, and characterization; and international or national facilities for the with the Fusion Energy Sciences Advisory (3) synthesize catalysts with specific site testing of fusion materials; and Committee and shall also transmit such plan architectures. (B) the design and implementation of to the National Academy of Sciences for re- (b) PROGRAM ACTIVITIES.—In carrying out international or national facilities for the view. the program under this section, the Sec- testing and development of key fusion tech- (6) DEFINITIONS.—In this subsection: retary shall— nologies. (A) CONSTRUCTION.— The term ‘‘construc- (1) support both individual researchers and (c) UNITED STATES PARTICIPATION IN tion’’ means the physical construction of the multidisciplinary teams of researchers to ITER.— ITER facility, and the physical construction, pioneer new approaches in catalytic design; (1) IN GENERAL.—The United States may purchase, or manufacture of equipment or (2) develop, plan, construct, acquire, or op- participate in ITER only in accordance with components that are specifically designed erate special equipment or facilities, includ- this subsection. for the ITER facility, but does not mean the ing user facilities; (2) AGREEMENT.— design of the facility, equipment, or compo- (3) support technology transfer activities (A) IN GENERAL.—The Secretary is author- nents. to benefit industry and other users of catal- ized to negotiate an agreement for United (B) ITER.—The term ‘‘ITER’’ means the ysis science and engineering; and States participation in ITER. international burning plasma fusion research (4) coordinate research and development (B) CONTENTS.—Any agreement for United project in which the President announced activities with industry and other Federal States participation in ITER shall, at a min- United States participation on January 30, agencies. imum— 2003, or any similar international project. SEC. 904. HYDROGEN. (i) clearly define the United States finan- SEC. 907. SCIENCE AND TECHNOLOGY SCHOLAR- The Secretary shall conduct a program of cial contribution to construction and oper- SHIP PROGRAM. fundamental research and development in ating costs, as well as any other costs associ- (a) ESTABLISHMENT OF PROGRAM.— support of programs authorized in titleVIII. ated with the project; (1) IN GENERAL.—The Secretary is author- SEC. 905. ADVANCED SCIENTIFIC COMPUTING RE- (ii) ensure that the share of ITER’s high- ized to establish a Science and Technology SEARCH. technology components manufactured in the Scholarship Program to award scholarships The Secretary shall conduct an advanced United States is at least proportionate to to individuals that is designed to recruit and scientific computing research and develop- the United States financial contribution to prepare students for careers in the Depart- ment program, including in applied mathe- ITER; ment.

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(2) COMPETITIVE PROCESS.—Individuals (A) IN GENERAL.—Except as provided in (2) PROGRAM.—The term ‘‘Program’’ means shall be selected to receive scholarships subparagraph (B), obligated service under the Science and Technology Scholarship under this section through a competitive paragraph (1) shall begin not later than 60 Program established under this section. process primarily on the basis of academic days after the individual obtains the edu- SEC. 908. OFFICE OF SCIENTIFIC AND TECHNICAL merit, with consideration given to financial cational degree for which the scholarship INFORMATION. need and the goal of promoting the partici- was provided. The Secretary shall maintain within the pation of individuals identified in section 33 (B) DEFERRAL.—The Secretary may defer Department the Office of Scientific and or 34 of the Science and Engineering Equal the obligation of an individual to provide a Technical Information. Opportunities Act (42 U.S.C. 1885a or 1885b). period of service under paragraph (1) if the SEC. 909. SCIENCE AND ENGINEERING PILOT (3) SERVICE AGREEMENTS.—To carry out the Secretary determines that such a deferral is PROGRAM. Program the Secretary shall enter into con- appropriate. The Secretary shall prescribe (a) ESTABLISHMENT OF CONSORTIUM.—Not- tractual agreements with individuals se- the terms and conditions under which a serv- withstanding section 913, the Secretary shall lected under paragraph (2) under which the ice obligation may be deferred through regu- award a grant to Oak Ridge Associated Uni- individuals agree to serve as full-time em- lation. versities to establish a university consor- ployees of the Department, for the period de- (g) PENALTIES FOR BREACH OF SCHOLARSHIP tium to carry out a regional pilot program scribed in subsection (f)(1), in positions need- AGREEMENT.— for enhancing scientific, technological, engi- ed by the Department and for which the indi- (1) FAILURE TO COMPLETE ACADEMIC TRAIN- neering, and mathematical literacy, cre- viduals are qualified, in exchange for receiv- ING.—Scholarship recipients who fail to ativity, and decisionmaking. The consortium ing a scholarship. maintain a high level of academic standing, shall include leading research universities, (b) SCHOLARSHIP ELIGIBILITY.—In order to as defined by the Secretary by regulation, one or more universities that train substan- be eligible to participate in the Program, an who are dismissed from their educational in- tial numbers of elementary and secondary individual must— stitutions for disciplinary reasons, or who school teachers, and, where appropriate, Na- (1) be enrolled or accepted for enrollment voluntarily terminate academic training be- tional Laboratories. as a full-time graduate student at an institu- fore graduation from the educational pro- (b) PROGRAM ELEMENTS.—The program tion of higher education in an academic pro- gram for which the scholarship was awarded, shall include— gram or field of study described in the list shall be in breach of their contractual agree- (1) expanding strategic, formal partner- made available under subsection (d); ment and, in lieu of any service obligation ships among universities with strength in re- (2) be a United States citizen; and arising under such agreement, shall be liable search, universities that train substantial (3) at the time of the initial scholarship to the United States for repayment not later numbers of elementary and secondary school award, not be a Federal employee as defined than 1 year after the date of default of all teachers, and the private sector; in section 2105 of title 5 of the United States scholarship funds paid to them and to the in- (2) combining Department expertise with Code. stitution of higher education on their behalf one or more National Aeronautics and Space (c) APPLICATION REQUIRED.—An individual under the agreement, except as provided in Administration Educator Resource Centers; seeking a scholarship under this section subsection (h)(2). The repayment period may (3) developing programs to permit current shall submit an application to the Secretary be extended by the Secretary when deter- and future teachers to participate in ongoing at such time, in such manner, and con- mined to be necessary, as established by reg- research projects at National Laboratories taining such information, agreements, or as- ulation. and research universities and to adapt les- surances as the Secretary may require. (2) FAILURE TO BEGIN OR COMPLETE THE sons learned to the classroom; (d) ELIGIBLE ACADEMIC PROGRAMS.—The SERVICE OBLIGATION OR MEET THE TERMS AND (4) designing and implementing course Secretary shall make publicly available a CONDITIONS OF DEFERMENT.—A scholarship re- work; list of academic programs and fields of study cipient who, for any reason, fails to begin or (5) designing and implementing a strategy for which scholarships under the Program complete a service obligation under this sec- for measuring and assessing progress under may be utilized, and shall update the list as tion after completion of academic training, the program; and necessary. or fails to comply with the terms and condi- (6) developing models for transferring (e) SCHOLARSHIP REQUIREMENT.— tions of deferment established by the Sec- knowledge gained under the pilot program to (1) IN GENERAL.—The Secretary may pro- retary pursuant to subsection (f)(2)(B), shall other institutions and areas of the country. vide a scholarship under the Program for an be in breach of the contractual agreement. (c) REPORT.—Not later than 2 years after academic year if the individual applying for When a recipient breaches an agreement for appropriations are first available for the pro- the scholarship has submitted to the Sec- the reasons stated in the preceding sentence, gram, the Secretary shall transmit to Con- retary, as part of the application required the recipient shall be liable to the United gress a report outlining lessons learned and under subsection (c), a proposed academic States for an amount equal to— containing a plan for expanding the program program leading to a degree in a program or (A) the total amount of scholarships re- nationwide. The Secretary may begin imple- field of study on the list made available ceived by such individual under this section; mentation of such plan for expansion of the under subsection (d). plus program on October 1, 2008. The expansion of (2) DURATION OF ELIGIBILITY.—An indi- (B) the interest on the amounts of such the program shall be subject to section 913. vidual may not receive a scholarship under awards which would be payable if at the time SEC. 910. AUTHORIZATION OF APPROPRIATIONS. this section for more than 4 academic years, the awards were received they were loans (a) IN GENERAL.—In addition to amounts unless the Secretary grants a waiver. bearing interest at the maximum legal pre- authorized to be appropriated under the 21st (3) SCHOLARSHIP AMOUNT.—The dollar vailing rate, as determined by the Treasurer Century Nanotechnology Research and De- amount of a scholarship under this section of the United States, velopment Act (15 U.S.C. 7501 et seq.) and the for an academic year shall be determined multiplied by 3. Department of Energy High-End Computing under regulations issued by the Secretary, Revitalization Act of 2004 (15 U.S.C. 5541 et but shall in no case exceed the cost of at- (h) WAIVER OR SUSPENSION OF OBLIGA- seq.), the following sums are authorized to be tendance. TION.— appropriated to the Secretary for the pur- (4) AUTHORIZED USES.—A scholarship pro- (1) DEATH OF INDIVIDUAL.—Any obligation poses of carrying out this subtitle: vided under this section may be expended for of an individual incurred under the Program (1) For fiscal year 2006, $3,785,000,000. tuition, fees, and other authorized expenses (or a contractual agreement thereunder) for (2) For fiscal year 2007, $4,153,000,000. as established by the Secretary by regula- service or payment shall be canceled upon (3) For fiscal year 2008, $4,628,000,000. tion. the death of the individual. (4) For fiscal year 2009, $5,300,000,000. (5) CONTRACTS REGARDING DIRECT PAYMENTS (2) IMPOSSIBILITY OR EXTREME HARDSHIP.— (5) For fiscal year 2010, $5,800,000,000. TO INSTITUTIONS.—The Secretary may enter The Secretary shall by regulation provide for (b) 2006 ALLOCATIONS.—From amounts au- into a contractual agreement with an insti- the partial or total waiver or suspension of thorized under subsection (a)(1), the fol- tution of higher education under which the any obligation of service or payment in- lowing sums are authorized for fiscal year amounts provided for a scholarship under curred by an individual under the Program 2006: this section for tuition, fees, and other au- (or a contractual agreement thereunder) (1) SYSTEMS BIOLOGY.—For activities under thorized expenses are paid directly to the in- whenever compliance by the individual is section 902, $100,000,000. stitution with respect to which the scholar- impossible or would involve extreme hard- (2) SCIENTIFIC COMPUTING.—For activities ship is provided. ship to the individual, or if enforcement of under section 905, $252,000,000. (f) PERIOD OF OBLIGATED SERVICE.— such obligation with respect to the indi- (3) FUSION ENERGY SCIENCES.—For activi- (1) DURATION OF SERVICE.—The period of vidual would be contrary to the best inter- ties under section 906, excluding activities service for which an individual shall be obli- ests of the Government. under subsection (c) of that section, gated to serve as an employee of the Depart- (i) DEFINITIONS.—In this section the fol- $335,000,000. ment is, except as provided in subsection lowing definitions apply: (4) SCHOLARSHIP.—For the scholarship pro- (h)(2), 24 months for each academic year for (1) COST OF ATTENDANCE.—The term ‘‘cost gram described in section 907, $800,000. which a scholarship under this section is pro- of attendance’’ has the meaning given that (5) OFFICE OF SCIENTIFIC AND TECHNICAL IN- vided. term in section 472 of the Higher Education FORMATION.—For activities under section 908, (2) SCHEDULE FOR SERVICE.— Act of 1965 (20 U.S.C. 1087ll). $7,000,000.

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(6) PILOT PROGRAM.—For activities under Subtitle B—Research Administration and after awarding more than $500,000 through a section 909, $4,000,000. Operations competition described in subsection (b) that (c) 2007 ALLOCATIONS.—From amounts au- SEC. 911. COST SHARING. is limited to 1 of the categories described in thorized under subsection (a)(2), the fol- (a) RESEARCH AND DEVELOPMENT.—Except paragraphs (1) through (4) of subsection (b). lowing sums are authorized for fiscal year as otherwise provided in this title, for re- (d) WAIVERS.—The Secretary may waive 2007: search and development programs carried the requirement under subsection (a) requir- ing competition if the Secretary considers it (1) SYSTEMS BIOLOGY.—For activities under out under this title, the Secretary shall re- section 902, such sums as may be necessary. quire a commitment from non-Federal necessary to more quickly advance research, development, demonstration, or commercial (2) SCIENTIFIC COMPUTING.—For activities sources of at least 20 percent of the cost of application activities. The Secretary shall under section 905, $270,000,000. the project. The Secretary may reduce or notify Congress within 30 days when a waiver (3) FUSION ENERGY SCIENCES.—For activi- eliminate the non-Federal requirement is granted under this subsection. The Sec- ties under section 906, excluding activities under this subsection if the Secretary deter- retary may not delegate the waiver author- under subsection (c) of that section, mines that the research and development is ity under this subsection for awards over $349,000,000. of a basic or fundamental nature. $500,000. (4) SCHOLARSHIP.—For the scholarship pro- (b) DEMONSTRATION AND COMMERCIAL AP- gram described in section 907, $1,600,000. PLICATION.—Except as otherwise provided in SEC. 914. EXTERNAL TECHNICAL REVIEW OF DE- PARTMENTAL PROGRAMS. (5) OFFICE OF SCIENTIFIC AND TECHNICAL IN- this title, the Secretary shall require at (a) NATIONAL APPLIED ENERGY RESEARCH FORMATION.—For activities under section 908, least 50 percent of the costs related to any AND DEVELOPMENT ADVISORY COMMITTEES.— $7,500,000. demonstration or commercial application ac- tivities under this title to be provided from (1) IN GENERAL.—The Secretary shall estab- (6) PILOT PROGRAM.—For activities under lish one or more advisory committees to re- section 909, $4,000,000. non-Federal sources. The Secretary may re- duce the non-Federal requirement under this view and advise the Department’s applied (d) 2008 ALLOCATIONS.—From amounts au- subsection if the Secretary determines that programs in the following areas: thorized under subsection (a)(3), the fol- the reduction is necessary and appropriate (A) Energy efficiency. lowing sums are authorized for fiscal year considering the technological risks involved (B) Renewable energy. 2008: in the project and is necessary to meet the (C) Nuclear energy. (1) SYSTEMS BIOLOGY.—For activities under objectives of this title. (D) Fossil energy. section 902, such sums as may be necessary. (c) CALCULATION OF AMOUNT.—In calcu- (2) EXISTING ADVISORY COMMITTEES.—The (2) SCIENTIFIC COMPUTING.—For activities lating the amount of the non-Federal com- Secretary may designate an existing advi- under section 905, $350,000,000. mitment under subsection (a) or (b), the Sec- sory committee within the Department to (3) FUSION ENERGY SCIENCES.—For activi- retary may include personnel, services, fulfill the responsibilities of an advisory ties under section 906, excluding activities equipment, and other resources. committee under this subsection. under subsection (c) of that section, (d) SIZE OF NON-FEDERAL SHARE.—The Sec- (b) OFFICE OF SCIENCE ADVISORY COMMIT- $362,000,000. retary may consider the amount of the non- TEES.— (4) SCHOLARSHIP.—For the scholarship pro- Federal share in selecting projects under this (1) USE OF EXISTING COMMITTEES.—Except gram described in section 907, $2,000,000. title. as otherwise provided under the Federal Ad- (5) OFFICE OF SCIENTIFIC AND TECHNICAL IN- SEC. 912. REPROGRAMMING. visory Committee Act, the Secretary shall FORMATION.—For activities under section 908, (a) DISTRIBUTION REPORT.—Not later than continue to use the scientific program advi- $8,000,000. 60 days after the date of enactment of an Act sory committees chartered under the Federal (6) PILOT PROGRAM.—For activities under appropriating amounts authorized under this Advisory Committee Act (5 U.S.C. App.) by section 909, $4,000,000. title, the Secretary shall transmit to Con- the Office of Science to oversee research and (e) 2009 ALLOCATIONS.—From amounts au- gress a report explaining how such amounts development programs under that Office. thorized under subsection (a)(4), the fol- will be distributed among the activities au- (2) REPORT.—Before the Department issues lowing sums are authorized for fiscal year thorized by this title. any new guidance regarding the membership 2009: (b) REPROGRAMMING LETTER.—No amount for Office of Science scientific program advi- (1) SYSTEMS BIOLOGY.—For activities under authorized by this title shall be obligated or sory committees, the Secretary shall trans- section 902, such sums as may be necessary. expended for a purpose inconsistent with the mit a report to the Congress outlining the (2) SCIENTIFIC COMPUTING.—For activities appropriations Act appropriating such reasons for the proposed changes, and 60 days under section 905, $375,000,000. amount, the report accompanying such ap- must have elapsed after transmittal of the (3) FUSION ENERGY SCIENCES.—For activi- propriations Act, or a distribution report report before the Department may imple- ties under section 906, excluding activities transmitted under subsection (a) if such obli- ment those changes. under subsection (c) of that section, gation or expenditure would change an indi- (3) SCIENCE ADVISORY COMMITTEE.— $377,000,000. vidual amount, as represented in such an (A) ESTABLISHMENT.—There shall be a (4) SCHOLARSHIP.—For the scholarship pro- Act, report, or distribution report, by more Science Advisory Committee for the Office of gram described in section 907, $2,000,000. than 2 percent or $2,000,000, whichever is Science that includes the chairs of each of (5) OFFICE OF SCIENTIFIC AND TECHNICAL IN- smaller, unless the Secretary has trans- the advisory committees described in para- FORMATION.—For activities under section 908, mitted to Congress a letter of explanation graph (1). $8,000,000. and a period of 30 days has elapsed after Con- (B) RESPONSIBILITIES.—The Science Advi- (6) PILOT PROGRAM.—For activities under gress receives the letter. sory Committee shall— section 909, $8,000,000. (c) COMPUTATION.—The computation of the (i) advise the Director of the Office of 30-day period described in subsection (b) Science on science issues; (f) 2010 ALLOCATIONS.—From amounts au- shall exclude any day on which either House (ii) advise the Director of the Office of thorized under subsection (a)(5), the fol- of Congress is not in session because of an Science with respect to the well-being and lowing sums are authorized for fiscal year adjournment of more than 3 days to a day management of the National Laboratories 2010: certain. and Department research facilities; (1) SYSTEMS BIOLOGY.—For activities under SEC. 913. MERIT-BASED COMPETITION. (iii) advise the Director of the Office of section 902, such sums as may be necessary. (a) COMPETITIVE MERIT REVIEW.—Awardees Science with respect to education and work- (2) SCIENTIFIC COMPUTING.—For activities of funds authorized under this title shall be force training activities required for effec- under section 905, $400,000,000. selected through open competitions. Funds tive short-term and long-term basic and ap- (3) FUSION ENERGY SCIENCES.—For activi- shall be competitively awarded only after an plied research activities of the Office of ties under section 906, excluding activities impartial review of the scientific and tech- Science; and under subsection (c) of that section, nical merit of the proposals for such awards (iv) advise the Director of the Office of $393,000,000. has been carried out by or for the Depart- Science with respect to the well-being of the (4) SCHOLARSHIP.—For the scholarship pro- ment on the basis of criteria outlined by the university research programs supported by gram described in section 907, $2,000,000. Secretary in the solicitation of proposals. the Office of Science. (5) OFFICE OF SCIENTIFIC AND TECHNICAL IN- (b) COMPETITION.—Competitive awards (c) MEMBERSHIP.—Each member of an advi- FORMATION.—For activities under section 908, under this title shall involve competitions sory committee appointed under this section $8,500,000. open to all qualified entities within one or shall have significant scientific, technical, (6) PILOT PROGRAM.—For activities under more of the following categories: or other appropriate expertise. The member- section 909, $8,000,000. (1) Institutions of higher education. ship of each committee shall represent a (g) ITER CONSTRUCTION.—From amounts (2) National Laboratories. wide range of expertise, including, to the ex- authorized under subsection (a) and in addi- (3) Nonprofit and for-profit private enti- tent practicable, members with expertise tion to amounts authorized under sub- ties. from outside the disciplines covered by the sections (b)(3), (c)(3), (d)(3), (e)(3), and (f)(3), (4) State and local governments. program, and a diverse set of interests. there are authorized to be appropriated to (5) Consortia of entities described in para- (d) MEETINGS AND PURPOSES.—Each advi- the Secretary such sums as may be nec- graphs (1) through (4). sory committee under this section shall essary for ITER construction, consistent (c) CONGRESSIONAL NOTIFICATION.—The Sec- meet at least semiannually to review and ad- with the limitations of section 906(c). retary shall notify Congress within 30 days vise on the progress made by the respective

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(e) REVIEW AND ASSESSMENT.—Not later structure and facilities supported primarily Subtitle C—Energy Efficiency than 6 months after the date of enactment of from the Office of Science and the applied this Act, the Secretary shall enter into ar- programs at each National Laboratory and CHAPTER 1—VEHICLES, BUILDINGS, AND rangements with the National Academy of Department research facility. Such strategy INDUSTRIES Sciences to conduct reviews and assessments shall provide cost-effective means for— SEC. 922. PROGRAMS. of the programs authorized by this title, the (1) maintaining existing facilities and in- (a) IN GENERAL.—The Secretary shall con- measurable cost and performance-based frastructure, as needed; duct programs of energy efficiency research, goals for the applied programs, and the (2) closing unneeded facilities; development, demonstration, and commer- progress in meeting such goals. Such reviews (3) making facility modifications; and cial application, including activities de- and assessments shall be completed and re- (4) building new facilities. scribed in this chapter. Such programs shall ports containing the results of all such re- (b) REPORT.— be focused on the following objectives: views and assessments transmitted to the (1) REQUIREMENT.—The Secretary shall pre- (1) Increasing the energy efficiency of vehi- Congress not later than 2 years after the pare and transmit to the Congress not later cles, buildings, and industrial processes. date of enactment of this Act. than June 1, 2007, a report summarizing the (2) Reducing the Nation’s demand for en- SEC. 915. COMPETITIVE AWARD OF MANAGE- strategies developed under subsection (a). ergy, especially energy from foreign sources. MENT CONTRACTS. (2) CONTENTS.—For each National Labora- (3) Reducing the cost of energy and making None of the funds authorized to be appro- tory and Department research facility, for the economy more efficient and competitive. priated to the Secretary by this title may be the facilities primarily used for science and (4) Improving the Nation’s energy security. used to award a management and operating energy research, such report shall contain— (5) Reducing the environmental impact of contract for a National Laboratory (exclud- (A) the current priority list of proposed fa- energy-related activities. ing those named in subparagraphs (G), (H), cilities and infrastructure projects, includ- (b) GOALS.— (N), (O) of section 900(b)(6)), unless such con- ing cost and schedule requirements; (1) INITIAL GOALS.—In accordance with the tract is competitively awarded, or the Sec- (B) a current 10-year plan that dem- performance plan and report requirements in retary grants, on a case-by-case basis, a onstrates the reconfiguration of its facilities section 4 of the Government Performance waiver. The Secretary may not delegate the and infrastructure to meet its missions and Results Act of 1993, the Secretary shall authority to grant such a waiver and shall to address its long-term operational costs transmit to the Congress, along with the submit to the Congress a report notifying it and return on investment; of the waiver, and setting forth the reasons President’s annual budget request for fiscal (C) the total current budget for all facili- year 2007, a report containing outcome meas- for the waiver, at least 60 days prior to the ties and infrastructure funding; and date of the award of such contract. ures with explicitly stated cost and perform- (D) the current status of each facility and ance baselines. The measures shall specify SEC. 916. NATIONAL LABORATORY DESIGNATION. infrastructure project compared to the origi- energy efficiency performance goals, with After the date of enactment of this Act the nal baseline cost, schedule, and scope. Secretary shall not designate a facility that quantifiable 5-year cost and energy savings SEC. 920. COORDINATION PLAN. is not referred to in section 900(b)(6) as a Na- target levels, for vehicles, buildings, and in- (a) IN GENERAL.—The Secretary shall de- tional Laboratory. dustries, and any other such goals the Sec- velop a coordination plan to improve coordi- retary considers appropriate. SEC. 917. REPORT ON EQUAL EMPLOYMENT OP- nation and collaboration in research, devel- (2) SUBSEQUENT TRANSMITTALS.—The Sec- PORTUNITY PRACTICES. opment, demonstration, and commercial ap- Not later than 12 months after the date of retary shall transmit to the Congress, along plication activities across Department orga- enactment of this Act, and biennially there- with the President’s annual budget request nizational boundaries. after, the Secretary shall transmit to Con- for each fiscal year after 2007, a report con- (b) PLAN CONTENTS.—The plan shall de- taining— gress a report on the equal employment op- scribe— portunity practices at National Labora- (A) a description, including quantitative (1) how the Secretary will ensure that the analysis, of progress in achieving perform- tories. Such report shall include— applied programs are coordinating their ac- (1) a thorough review of each laboratory ance goals transmitted under paragraph (1), tivities, including a description of specific as compared to the baselines transmitted contractor’s equal employment opportunity research questions that cross organizational policies, including promotion to manage- under paragraph (1); and boundaries and of how the relevant applied (B) any amendments to such goals. ment and professional positions and pay programs are coordinating their efforts to raises; (c) PUBLIC INPUT.—The Secretary shall answer those questions, and how such cross- consider advice from industry, universities, (2) a statistical report on complaints and cutting research questions will be identified their disposition in the laboratories; and other interested parties through seeking in the future; comments in the Federal Register and other (3) a description of how equal employment (2) how the Secretary will ensure that re- opportunity practices at the laboratories are means before transmitting each report under search that has been supported by the Office subsection (b). treated in the contract and in calculating of Science is being or will be used by the ap- award fees for each contractor; plied programs, including a description of SEC. 923. VEHICLES. (4) a summary of disciplinary actions and specific Office of Science-supported research (a) ADVANCED, COST-EFFECTIVE TECH- their disposition by either the Department that is relevant to the applied programs and NOLOGIES.— The Secretary shall conduct a or the relevant contractors for each labora- of how the applied programs have used or program of research, development, dem- tory; will use that research; and onstration, and commercial application of (5) a summary of outreach efforts to at- (3) a description of how the Secretary will advanced, cost-effective technologies to im- tract women and minorities to the labora- ensure that the research agenda of the Office prove the energy efficiency and environ- tories; of Science includes research questions of mental performance of light-duty and heavy- (6) a summary of efforts to retain women concern to the applied programs, including a duty vehicles, including— and minorities in the laboratories; and description of specific research questions (1) hybrid and electric propulsion systems, (7) a summary of collaboration efforts with that the Office of Science will address to as- including plug-in hybrid systems; the Office of Federal Contract Compliance sist the applied programs. (2) advanced engines, including combustion Programs to improve equal employment op- (c) PLAN TRANSMITTAL.—The Secretary engines; portunity practices at the laboratories. shall transmit the coordination plan to Con- (3) advanced materials, including high SEC. 918. USER FACILITY BEST PRACTICES PLAN. gress not later than 9 months after the date strength, lightweight materials, such as The Secretary shall not allow any Depart- of enactment of this Act, and every 2 years nanostructured materials, composites, ment facility to begin functioning as a user thereafter shall transmit a revised coordina- multimaterial parts, carbon fibers, and ma- facility after the date of enactment of this tion plan. terials with high thermal conductivity; Act until the Secretary, for that facility— (d) CONFERENCE.—Not less than 6 months (4) technologies for reduced drag and roll- (1) develops a plan to ensure that the facil- after the date of enactment of this Act, the ing resistance; ity will— Secretary shall convene a conference of pro- (5) whole-vehicle design optimization to re- (A) have a skilled staff to support a wide gram managers from the Office of Science duce the weight of component parts and thus range of users; and the applied programs to review ideas and increase the fuel economy of the vehicle, in- (B) have a fair method for allocating time explore possibilities for effective cross-pro- cluding fiber optics to replace traditional to users that provides for input from facility gram collaboration. The Secretary also shall wiring; management, user representatives, and out- invite participation relevant Federal agen- (6) thermoelectric devices that capture side experts; and cies and other programs in the Federal Gov- waste heat and convert thermal energy into (C) be operated in a safe and fiscally pru- ernment conducting relevant research, and electricity; and dent manner; and other stakeholders as appropriate. (7) advanced drivetrains.

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(b) LOW-COST HYDROGEN PROPULSION AND (4) GRANT PAYMENTS.— waste-intensive industries. Such program INFRASTRUCTURE.—The Secretary of Energy (A) INITIAL PAYMENT.—The Secretary shall shall be focused on industries whose total shall— pay 50 percent of the total amount of the annual energy consumption amounts to (1) establish a research, development, and grant to grant recipients upon selection. more than 1.0 percent of the total nationwide demonstration program to determine the (B) REMAINDER OF PAYMENT.—The Sec- annual energy consumption, according to the feasibility of using hydrogen propulsion in retary shall pay the remaining 50 percent of most recent data available to the Depart- light-weight vehicles and the integration of the grant only after independent certifi- ment. Research and development efforts the associated hydrogen production infra- cation of operational buildings for compli- under this section shall give a higher pri- structure using off-the-shelf components; ance with the standards for energy efficient ority to broad-benefit efficiency technologies and buildings described in paragraph (7). that have practical application across indus- (2) identify universities and institutions (C) FAILURE TO COMPLY.—The Secretary try sectors. that— shall not provide the remainder of the pay- (b) ELECTRIC MOTOR CONTROL TECH- (A) have expertise in researching and test- ment unless the building is certified within 6 NOLOGY.—The program conducted under sub- ing vehicles fueled by hydrogen, methane, months after operation of the completed section (a) shall include research on, and de- and other fuels; building to meet the requirements described velopment, demonstration, and commercial application of, advanced control devices to (B) have expertise in integrating off-the- in subparagraph (B), or in the case of major improve the energy efficiency of electric mo- shelf components to minimize cost; and renovations the building is certified within 6 tors, including those used in industrial proc- (C) within two years can test a vehicle months of the completion of the renovations. esses, heating, ventilation, and cooling. based on an existing commercially available (5) REPORT TO CONGRESS.—Not later than 3 platform with a curb weight of not less than years after awarding the first grant under SEC. 926. DEMONSTRATION AND COMMERCIAL APPLICATION. 2,000 pounds before modifications, that— this subsection, the Secretary shall transmit (a) APPLIANCES AND TESTING.—The Sec- (i) operates solely on hydrogen gas; to Congress a report containing— retary shall conduct research and analysis to (ii) can travel a minimum of 300 miles (A) the total number and dollar amount of determine whether, given Department-spon- under normal road conditions; and grants awarded under this subsection; and sored and other advances in energy effi- (iii) uses hydrogen produced from water (B) an estimate of aggregate cost and en- ciency technologies, demonstration and com- using only solar energy. ergy savings enabled by the pilot program mercial application of innovative, cost-effec- SEC. 924. BUILDINGS. under this subsection. tive energy savings and pollution reducing (a) PROGRAM.—The Secretary shall conduct (6) ADMINISTRATIVE EXPENSES.—Adminis- technologies could be used to improve appli- a program of research, development, dem- trative expenses for the program under this ances and test procedures used to measure onstration, and commercial application of subsection shall not exceed 10 percent of ap- appliance efficiency. cost-effective technologies, for new construc- propriated funds. (b) BUILDING ENERGY CODES.—The Sec- tion and retrofit, to improve the energy effi- (7) DEFINITION OF ENERGY EFFICIENT BUILD- retary shall, in coordination with govern- ciency and environmental performance of ING.—For purposes of this subsection, the ment, nongovernment, and commercial part- commercial, industrial, institutional, and term ‘‘energy efficient building’’ means a ners, conduct research and analyses of the residential buildings. The program shall use building that is independently certified— best cost-effective practices in the develop- a whole-buildings approach, integrating (A) to meet or exceed the applicable United ment and updating of building energy codes, work on elements including— States Green Building Council’s Leadership including for manufactured housing. Anal- (1) advanced controls, including occupancy in Energy and Environmental Design stand- yses shall focus on how to encourage energy sensors, daylighting controls, wireless tech- ards for a silver, gold, or platinum rating; efficiency and adoption of newly developed nologies, automated responses to changes in and energy production and use equipment. (c) ADVANCED ENERGY TECHNOLOGY TRANS- the internal and external environment, and (B) to achieve a reduction in energy con- FER CENTERS.— real time delivery of information on building sumption of— (1) GRANTS.—Not later than 18 months system and component performance; (i) at least 25 percent for new construction, compared to the energy standards set by the after the date of enactment of this Act, the (2) building envelope, including windows, Secretary shall make grants to nonprofit in- roofing systems and materials, and building- Federal Building Code (10 CFR part 434); and (ii) at least 20 percent for major renova- stitutions, State and local governments, or integrated photovoltaics; universities (or consortia thereof), to estab- (3) building systems components, includ- tions, compared to energy consumption be- fore renovations are begun. lish a geographically dispersed network of ing— Advanced Energy Technology Transfer Cen- (c) STANDARDIZATION REPORT AND PRO- (A) lighting; ters, to be located in areas the Secretary de- GRAM.— (B) appliances, including advanced tech- termines have the greatest need of the serv- (1) REPORT.—The Secretary shall enter nologies, such as stand-by load technologies, ices of such Centers. for office equipment, food service equipment, into an arrangement with the National Insti- tute of Building Sciences to— (2) ACTIVITIES.— and laundry equipment; and (A) IN GENERAL.—Each Center shall operate (A) conduct a comprehensive assessment of (C) heating, ventilation, and cooling sys- a program to encourage demonstration and how well current voluntary consensus stand- tems, including ground-source heat pumps commercial application of advanced energy ards related to buildings match state-of-the- and radiant heating; and methods and technologies through education art knowledge on the design, construction, (4) onsite renewable energy generation. and outreach to building and industrial pro- operation, repair, and renovation of high- (b) ENERGY EFFICIENT BUILDING PILOT fessionals, and to other individuals and orga- performance buildings; and GRANT PROGRAM.— nizations with an interest in efficient energy (B) recommend steps for the Secretary to (1) IN GENERAL.—Not later than 6 months use. take to accelerate the development and pro- after the date of enactment of this Act, the (B) ADVISORY PANEL.—Each Center shall es- mulgation of voluntary consensus standards Secretary shall establish a pilot program to tablish an advisory panel to advise the Cen- award grants to businesses and organizations for high-performance buildings that would ter on how best to accomplish the activities for new construction of energy efficient address all major high-performance building under subparagraph (A). attributes, including energy efficiency, sus- buildings, or major renovations of buildings (3) APPLICATION.—A person seeking a grant that will result in energy efficient buildings, tainability, safety and security, life-cycle under this subsection shall submit to the to demonstrate innovative energy efficiency cost, and productivity. Secretary an application in such form and technologies, especially those sponsored by (2) PROGRAM.—After receiving the report containing such information as the Sec- the Department. under paragraph (1), the Secretary shall es- retary may require. The Secretary may (2) AWARDS.—The Secretary shall award tablish a program of technical assistance and award a grant under this subsection to an en- grants under this subsection competitively grants to support standards development or- tity already in existence if the entity is oth- to those applicants whose proposals— ganizations in— erwise eligible under this subsection. (A) best demonstrate— (A) the revision of existing standards, to (4) SELECTION CRITERIA.—The Secretary (i) likelihood to meet or exceed the design reflect current knowledge of high-perform- shall award grants under this subsection on standards referred to in paragraph (7); ance buildings; and the basis of the following criteria, at a min- (ii) likelihood to maximize cost-effective (B) the development and promulgation of imum: energy efficiency opportunities; and new standards in areas important to high- (A) The ability of the applicant to carry (iii) advanced energy efficiency tech- performance buildings where there is no ex- out the activities in paragraph (2). nologies; and isting standard or where an existing stand- (B) The extent to which the applicant will (B) are least likely to be realized without ard cannot easily be modified. coordinate the activities of the Center with Federal assistance. SEC. 925. INDUSTRIES. other entities, such as State and local gov- (3) AMOUNT OF GRANTS.—Grants under this (a) PROGRAM.—The Secretary shall conduct ernments, utilities, and educational and re- subsection shall be for up to 50 percent of de- a program of research, development, dem- search institutions. sign and energy modeling costs, not to ex- onstration, and commercial application of (5) MATCHING FUNDS.—The Secretary shall ceed $50,000 per building. No single grantee advanced technologies to improve the energy require a non-Federal matching requirement may be eligible for more than 3 grants per efficiency, environmental performance, and of at least 50 percent of the costs of estab- year under this program. process efficiency of energy-intensive and lishing and operating each Center.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00102 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.057 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2255

(6) ADVISORY COMMITTEE.—The Secretary Secretary may make additional solicitations and public response shall be solicited by the shall establish an advisory committee to ad- for proposals if the Secretary determines Secretary. vise the Secretary on the establishment of that such solicitations are necessary to (e) DEVELOPMENT, DEMONSTRATION, AND carry out this section. Centers under this subsection. The advisory COMMERCIAL APPLICATION.—The Secretary (d) SELECTION OF PROPOSALS.— committee shall be composed of individuals shall carry out a development, demonstra- (1) IN GENERAL.—The Secretary shall, not with expertise in the area of advanced en- tion, and commercial application program later than 90 days after the closing date es- ergy methods and technologies, including at for the Next Generation Lighting Initiative tablished by the Secretary for receipt of pro- least 1 representative from— through competitively selected awards. The posals under subsection (c), select up to 5 (A) State or local energy offices; Secretary may give preference to partici- proposals which may receive financial assist- (B) energy professionals; pants of the Industry Alliance selected pur- ance under this section, subject to the avail- (C) trade or professional associations; suant to subsection (c). (D) architects, engineers, or construction ability of appropriations. professionals; (2) DIVERSITY; ENVIRONMENTAL EFFECT.—In (f) INTELLECTUAL PROPERTY.—The Sec- (E) manufacturers; selecting proposals, the Secretary shall con- retary may require, in accordance with the (F) the research community; and sider diversity of battery type, geographic authorities provided in section 202(a)(ii) of (G) nonprofit energy or environmental or- and climatic diversity, and life-cycle envi- title 35, United States Code, section 152 of ganizations. ronmental effects of the approaches. the Atomic Energy Act of 1954 (42 U.S.C. (7) DEFINITIONS.—For purposes of this sub- (3) LIMITATION.—No 1 project selected 2182), and section 9 of the Federal Non- section: under this section shall receive more than 25 nuclear Energy Research and Development (A) ADVANCED ENERGY METHODS AND TECH- percent of the funds authorized for the pro- Act of 1974 (42 U.S.C. 5908), that— NOLOGIES.—The term ‘‘advanced energy gram under this section. (1) for any new invention resulting from methods and technologies’’ means all meth- (4) OPTIMIZATION OF FEDERAL RESOURCES.— activities under subsection (d)— ods and technologies that promote energy ef- The Secretary shall consider the extent of (A) the Industry Alliance members that ficiency and conservation, including distrib- involvement of State or local government are active participants in research, develop- uted generation technologies, and life-cycle and other persons in each demonstration ment, and demonstration activities related analysis of energy use. project to optimize use of Federal resources. to the advanced solid-state lighting tech- (B) CENTER.—The term ‘‘Center’’ means an (5) OTHER CRITERIA.—The Secretary may nologies that are the subject of this section Advanced Energy Technology Transfer Cen- consider such other criteria as the Secretary shall be granted first option to negotiate ter established pursuant to this subsection. considers appropriate. with the invention owner nonexclusive li- (C) DISTRIBUTED GENERATION.—The term (e) CONDITIONS.—The Secretary shall re- censes and royalties for uses of the invention ‘‘distributed generation’’ means an electric quire that— related to solid-state lighting on terms that power generation facility that is designed to (1) relevant information be provided to the are reasonable under the circumstances; and serve retail electric consumers at or near the Department, the users of the batteries, the (B)(i) for 1 year after a United States pat- facility site. proposers, and the battery manufacturers; ent is issued for the invention, the patent (d) REPORT.—Not later than 2 years after (2) the proposer provide at least 50 percent holder shall not negotiate any license or roy- the date of enactment of this Act, and once of the costs associated with the proposal; alty with any entity that is not a participant every 3 years thereafter, the Secretary shall and in the Industry Alliance described in sub- transmit to Congress a report on the results (3) the proposer provide to the Secretary paragraph (A); and of research and analysis under this section. such information regarding the disposal of (ii) during the year described in clause (i), In calculating cost-effectiveness for purposes the batteries as the Secretary may require the invention owner shall negotiate non- of such reports, the Secretary shall include, to ensure that the proposer disposes of the exclusive licenses and royalties in good faith at a minimum, the avoided cost of additional batteries in accordance with applicable law. with any interested participant in the Indus- energy production, savings to the economy SEC. 928. NEXT GENERATION LIGHTING INITIA- try Alliance described in subparagraph (A); from lower peak energy prices and reduced TIVE. and price volatility, and the public and private (a) IN GENERAL.—The Secretary shall carry (2) such other terms as the Secretary de- benefits of reduced pollution. out a Next Generation Lighting Initiative in termines are required to promote acceler- SEC. 927. SECONDARY ELECTRIC VEHICLE BAT- accordance with this section to support re- ated commercialization of inventions made TERY USE PROGRAM. search, development, demonstration, and under the Initiative. (a) DEFINITIONS.—For purposes of this sec- commercial application activities related to (g) NATIONAL ACADEMY REVIEW.—The Sec- tion: advanced solid-state lighting technologies retary shall enter into an arrangement with (1) ASSOCIATED EQUIPMENT.—The term ‘‘as- based on white light emitting diodes. the National Academy of Sciences to con- (b) OBJECTIVES.—The objectives of the ini- sociated equipment’’ means equipment lo- duct periodic reviews of the Next Generation tiative shall be to develop advanced solid- cated where the batteries will be used that is Lighting Initiative. The Academy shall re- state organic and inorganic lighting tech- necessary to enable the use of the energy view the research priorities, technical mile- nologies based on white light emitting diodes stored in the batteries. stones, and plans for technology transfer and (2) BATTERY.—The term ‘‘battery’’ means that, compared to incandescent and fluores- cent lighting technologies, are longer last- progress towards achieving them. The Sec- an energy storage device that previously has retary shall consider the results of such re- been used to provide motive power in a vehi- ing; more energy-efficient; and cost-competi- tive, and have less environmental impact. views in evaluating the information obtained cle powered in whole or in part by elec- under subsection (d)(2). tricity. (c) INDUSTRY ALLIANCE.—The Secretary (b) PROGRAM.—The Secretary shall estab- shall, not later than 3 months after the date (h) DEFINITIONS.—As used in this section: lish and conduct a research, development, of enactment of this section, competitively (1) ADVANCED SOLID-STATE LIGHTING.—The demonstration, and commercial application select an Industry Alliance to represent par- term ‘‘advanced solid-state lighting’’ means program for the secondary use of batteries if ticipants that are private, for-profit firms a semiconducting device package and deliv- the Secretary finds that there are sufficient which, as a group, are broadly representative ery system that produces white light using numbers of such batteries to support the pro- of United States solid state lighting re- externally applied voltage. gram. The program shall be— search, development, infrastructure, and (2) RESEARCH.—The term ‘‘research’’ in- (1) designed to demonstrate the use of bat- manufacturing expertise as a whole. cludes research on the technologies, mate- teries in secondary applications, including (d) RESEARCH.— rials, and manufacturing processes required utility and commercial power storage and (1) IN GENERAL.—The Secretary shall carry for white light emitting diodes. power quality; out the research activities of the Next Gen- (3) INDUSTRY ALLIANCE.—The term ‘‘Indus- (2) structured to evaluate the performance, eration Lighting Initiative through competi- try Alliance’’ means an entity selected by including useful service life and costs, of tively awarded grants to researchers, includ- the Secretary under subsection (c). such batteries in field operations, and the ing Industry Alliance participants, National (4) WHITE LIGHT EMITTING DIODE.—The term necessary supporting infrastructure, includ- Laboratories, and institutions of higher edu- ‘‘white light emitting diode’’ means a ing reuse and disposal of batteries; and cation. semiconducting package, utilizing either or- (3) coordinated with ongoing secondary (2) ASSISTANCE FROM THE INDUSTRY ALLI- ganic or inorganic materials, that produces battery use programs at the National Lab- ANCE.—The Secretary shall annually solicit white light using externally applied voltage. from the Industry Alliance— oratories and in industry. SEC. 929. DEFINITIONS. (c) SOLICITATION.—Not later than 180 days (A) comments to identify solid-state light- after the date of enactment of this Act, if ing technology needs; For the purposes of this chapter— the Secretary finds under subsection (b) that (B) assessment of the progress of the Ini- (1) the term ‘‘cost-effective’’ means result- there are sufficient numbers of batteries to tiative’s research activities; and ing in a simple payback of costs in 10 years support the program, the Secretary shall so- (C) assistance in annually updating solid- or less; and licit proposals to demonstrate the secondary state lighting technology roadmaps. (2) the term ‘‘whole-buildings approach’’ use of batteries and associated equipment (3) AVAILABILITY OF INFORMATION AND ROAD- includes, on a life-cycle basis, the energy and supporting infrastructure in geographic MAPS.—The information and roadmaps under use, cost of operations, and ease of repair or locations throughout the United States. The paragraph (2) shall be available to the public upgrade of a building.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00103 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.057 H20PT1 H2256 CONGRESSIONAL RECORD — HOUSE April 20, 2005 SEC. 930. AUTHORIZATION OF APPROPRIATIONS. (F) $50,000,000 for carrying out the Next ance baselines. The measures shall specify The following sums are authorized to be Generation Lighting Initiative under section performance goals, with quantifiable 5-year 928. cost and energy savings target levels, for dis- appropriated to the Secretary for the pur- (5) For fiscal year 2010, $1,000,000,000, in- tributed energy resources and systems, and poses of carrying out this chapter: cluding— any other such goals the Secretary considers (1) For fiscal year 2006, $620,000,000, includ- (A) $340,000,000 for carrying out the vehi- appropriate. ing— cles program under section 923; (2) SUBSEQUENT TRANSMITTALS.—The Sec- (A) $200,000,000 for carrying out the vehi- (B) $240,000,000 for carrying out the build- retary shall transmit to the Congress, along cles program under section 923; ings program under section 924, of which with the President’s annual budget request (B) $100,000,000 for carrying out the build- $10,000,000 shall be for the grant program for each fiscal year after 2007, a report con- ings program under section 924, of which under section 924(b); taining— $10,000,000 shall be for the grant program (C) $190,000,000 for carrying out the indus- (A) a description, including quantitative under section 924(b); tries program under section 925(a); analysis, of progress in achieving perform- (C) $100,000,000 for carrying out the indus- (D) $10,000,000 for carrying out demonstra- ance goals transmitted under paragraph (1), tries program under section 925(a); tion and commercial applications activities as compared to the baselines transmitted (D) $2,000,000 for carrying out the electric under section 926; under paragraph (1); and motor control technology program under (E) $7,000,000 for carrying out the sec- (B) any amendments to such goals. section 925(b); ondary electric vehicle battery use program (E) $10,000,000 for carrying out demonstra- under section 927; and SEC. 933. ELECTRICITY TRANSMISSION AND DIS- tion and commercial applications activities TRIBUTION AND ENERGY ASSUR- (F) $50,000,000 for carrying out the Next ANCE. under section 926; Generation Lighting Initiative under section (F) $4,000,000 for carrying out the sec- 928. (a) PROGRAM.—The Secretary shall conduct ondary electric vehicle battery use program SEC. 931. LIMITATION ON USE OF FUNDS. a research, development, demonstration, and under section 927; and None of the funds authorized to be appro- commercial application program on ad- (G) $20,000,000 for carrying out the Next priated under this chapter may be used for— vanced control devices to improve the en- Generation Lighting Initiative under section (1) the issuance and implementation of en- ergy efficiency and reliability of the electric 928. ergy efficiency regulations; transmission and distribution systems and (2) For fiscal year 2007, $700,000,000, includ- (2) the Weatherization Assistance Program to protect the Nation against severe energy ing— under part A of title IV of the Energy Con- supply disruptions. This program shall ad- (A) $240,000,000 for carrying out the vehi- servation and Production Act (42 U.S.C. 6861 dress, at a minimum— cles program under section 923; et seq.); (1) advanced energy delivery and storage (B) $130,000,000 for carrying out the build- (3) the State Energy Program under part D technologies, materials, and systems, includ- ings program under section 924, of which of title III of the Energy Policy and Con- ing new transmission technologies, such as $10,000,000 shall be for the grant program servation Act (42 U.S.C. 6321 et seq.); or flexible alternating current transmission under section 924(b); (4) the Federal Energy Management Pro- systems, composite conductor materials, and (C) $115,000,000 for carrying out the indus- gram under part 3 of title V of the National other technologies that enhance reliability, tries program under section 925(a); Energy Conservation Policy Act (42 U.S.C. operational flexibility, or power-carrying ca- (D) $2,000,000 for carrying out the electric 8251 et seq.). pability; motor control technology program under CHAPTER 2—DISTRIBUTED ENERGY AND (2) advanced grid reliability and efficiency section 925(b); ELECTRIC ENERGY SYSTEMS technology development; (3) technologies contributing to significant (E) $10,000,000 for carrying out demonstra- SEC. 932. DISTRIBUTED ENERGY. tion and commercial applications activities load reductions; (a) IN GENERAL.—The Secretary shall con- (4) advanced metering, load management, under section 926; duct programs of distributed energy re- (F) $7,000,000 for carrying out the sec- and control technologies; sources and systems reliability and effi- (5) technologies to enhance existing grid ondary electric vehicle battery use program ciency research, development, demonstra- under section 927; and components; tion, and commercial application to improve (6) the development and use of high-tem- (G) $30,000,000 for carrying out the Next the reliability and efficiency of distributed Generation Lighting Initiative under section perature superconductors to— energy resources and systems, including ac- (A) enhance the reliability, operational 928. tivities described in this chapter. The pro- (3) For fiscal year 2008, $800,000,000, includ- flexibility, or power-carrying capability of grams shall address advanced energy tech- electric transmission or distribution sys- ing— nologies and systems and advanced grid reli- (A) $270,000,000 for carrying out the vehi- tems; or ability technologies. The programs shall in- (B) increase the efficiency of electric en- cles program under section 923; clude the integration of— (B) $160,000,000 for carrying out the build- ergy generation, transmission, distribution, (1) renewable energy resources; or storage systems; ings program under section 924, of which (2) fuel cells; $10,000,000 shall be for the grant program (7) integration of power systems, including (3) combined heat and power systems; systems to deliver high-quality electric under section 924(b); (4) microturbines; (C) $140,000,000 for carrying out the indus- power, electric power reliability, and com- (5) advanced natural gas turbines; bined heat and power; tries program under section 925(a); (6) advanced internal combustion engine (D) $2,000,000 for carrying out the electric (8) supply of electricity to the power grid generators; by small-scale, distributed, and residential- motor control technology program under (7) energy storage devices; section 925(b); based power generators; (8) interconnection standards, protocols, (9) the development and use of advanced (E) $10,000,000 for carrying out demonstra- and equipment; tion and commercial applications activities grid design, operation, and planning tools; (9) ancillary equipment for dispatch and (10) any other infrastructure technologies, under section 926; control; and (F) $7,000,000 for carrying out the sec- as appropriate; and (10) any other energy technologies, as ap- (11) technology transfer and education. ondary electric vehicle battery use program propriate. under section 927; and (b) MICRO-COGENERATION ENERGY TECH- (b) GOALS.— (G) $50,000,000 for carrying out the Next NOLOGY.—The Secretary shall make competi- (1) INITIAL GOALS.—In accordance with the Generation Lighting Initiative under section tive, merit-based grants to consortia for the performance plan and report requirements in 928. development of micro-cogeneration energy section 4 of the Government Performance (4) For fiscal year 2009, $925,000,000, includ- technology. The consortia shall explore— Results Act of 1993, the Secretary shall ing— (1) the use of small-scale combined heat transmit to the Congress, along with the (A) $310,000,000 for carrying out the vehi- and power in residential heating appliances; President’s annual budget request for fiscal cles program under section 923; or year 2007, a report containing outcome meas- (B) $200,000,000 for carrying out the build- (2) the use of excess power to operate other ures with explicitly stated cost and perform- ings program under section 924, of which appliances within the residence and supply ance baselines. The measures shall specify $10,000,000 shall be for the grant program excess generated power to the power grid. performance goals, with quantifiable 5-year under section 924(b); (c) GOALS.— cost and energy savings target levels, for (C) $170,000,000 for carrying out the indus- (1) INITIAL GOALS.—In accordance with the electricity transmission and distribution and tries program under section 925(a); performance plan and report requirements in energy assurance, and any other such goals (D) $10,000,000 for carrying out demonstra- section 4 of the Government Performance the Secretary considers appropriate. tion and commercial applications activities Results Act of 1993, the Secretary shall (2) SUBSEQUENT TRANSMITTALS.—The Sec- under section 926; transmit to the Congress, along with the retary shall transmit to the Congress, along (E) $7,000,000 for carrying out the sec- President’s annual budget request for fiscal with the President’s annual budget request ondary electric vehicle battery use program year 2007, a report containing outcome meas- for each fiscal year after 2007, a report con- under section 927; and ures with explicitly stated cost and perform- taining—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00104 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.058 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2257 (A) a description, including quantitative (4) Germany and Japan each had domestic President’s annual budget request for fiscal analysis, of progress in achieving perform- photovoltaic industries that employed more year 2007, a report containing outcome meas- ance goals transmitted under paragraph (1), than 10,000 people in 2003, while in the same ures with explicitly stated cost and perform- as compared to the baselines transmitted year the United States photovoltaics indus- ance baselines. The measures shall specify under paragraph (1); and try employed only 2,000 people. renewable energy performance goals, with (B) any amendments to such goals. (5) The United States is becoming increas- quantifiable 5-year cost and energy savings (c) HIGH VOLTAGE TRANSMISSION LINES.—As ingly dependent on imported energy. target levels, for wind power, photovoltaics, part of the program described in subsection (6) The high cost of fossil fuels is hurting solar thermal systems (including concen- (a), the Secretary shall award a grant to a the United States economy. trating and solar hot water), geothermal en- university research program to design and (7) Small reductions in peak demand can ergy, biomass-based systems, biofuels, and test, in consultation with the Tennessee Val- result in very large reductions in price, ac- hydropower, and any other such goals the ley Authority, state-of-the-art optimization cording to energy market experts. Secretary considers appropriate. techniques for power flow through existing (8) Although the United States has only 2 (2) SUBSEQUENT TRANSMITTALS.—The Sec- high voltage transmission lines. percent of the world’s oil reserves and 3 per- retary shall transmit to the Congress, along SEC. 933A. ADVANCED PORTABLE POWER DE- cent of the world’s natural gas reserves, our with the President’s annual budget request VICES. Nation’s renewable energy resources are vast for each fiscal year after 2007, a report con- (a) PROGRAM.—The Secretary shall— and largely untapped. taining— (1) establish a research, development, and (9) Renewable energy can reduce the de- (A) a description, including quantitative demonstration program to develop working mand for imported energy, reducing costs analysis, of progress in achieving perform- models of small scale portable power devices; and decreasing the variability of energy ance goals transmitted under paragraph (1), and prices. as compared to the baselines transmitted (2) to the fullest extent practicable, iden- (10) By using domestic renewable energy under paragraph (1); and tify and utilize the resources of universities resources, the United States can reduce the (B) any amendments to such goals. that have shown expertise with respect to amount of money sent into unstable regions (c) PUBLIC INPUT.—The Secretary shall advanced portable power devices for either of the world and keep it in the United consider advice from industry, universities, civilian or military use. States. and other interested parties through seeking (b) ORGANIZATION.—The universities identi- (11) By supporting renewable energy re- comments in the Federal Register and other fied and utilized under subsection (a)(2) are search and development, and funding dem- means before transmitting each report under authorized to establish an organization to onstration and commercial application pro- subsection (b). promote small scale portable power devices. grams for renewable energy, the United SEC. 938. SOLAR. (c) DEFINITION.—For purposes of this sec- States can create an export industry and im- (a) PROGRAM.—The Secretary shall conduct tion, the term ‘‘small scale portable power prove the balance of trade. a program of research, development, dem- device’’ means a field deployable portable (12) Renewable energy can significantly re- onstration, and commercial application for mechanical or electromechanical device that duce the environmental impacts of energy solar energy, including— can be used for applications such as commu- production. (1) photovoltaics; nications, computation, mobility enhance- SEC. 936. DEFINITIONS. (2) solar hot water and solar space heating; ment, weapons systems, optical devices, For purposes of this subtitle: and (3) concentrating solar power. cooling, sensors, medical devices and active (1) BIOBASED PRODUCT.—The term (b) BUILDING INTEGRATION.—For biological agent detection systems. ‘‘biobased product’’ means a product deter- photovoltaics, solar hot water, and space SEC. 934. AUTHORIZATION OF APPROPRIATIONS. mined by the Secretary to be a commercial heating, the Secretary shall conduct re- (a) IN GENERAL.—The following sums are or industrial product (other than food or search, development, demonstration, and authorized to be appropriated to the Sec- feed) that is— retary for the purposes of carrying out this commercial application to support the devel- (A) composed, in whole or in significant opment of products that can be easily inte- chapter: part, of— (1) For fiscal year 2006, $220,000,000. grated into new and existing buildings. (i) biological products; (c) MANUFACTURE.—The Secretary shall (2) For fiscal year 2007, $240,000,000. (ii) renewable domestic agricultural mate- conduct research, development, demonstra- (3) For fiscal year 2008, $250,000,000. rials (including plant, animal, and marine tion, and commercial application of manu- (4) For fiscal year 2009, $265,000,000. materials); or facturing techniques that can produce low- (5) For fiscal year 2010, $275,000,000. (iii) forestry materials; and cost, high-quality solar systems. (b) MICRO-COGENERATION ENERGY TECH- (B) produced in connection with the con- SEC. 939. BIOENERGY PROGRAMS. NOLOGY.—From the amounts authorized version of biomass to energy or fuel. (a) PROGRAM.—The Secretary shall conduct under subsection (a), $20,000,000 for each of (2) CELLULOSIC BIOMASS.—The term ‘‘cel- fiscal years 2006 and 2007 are authorized for a program of research, development, dem- lulosic biomass’’ means a crop containing onstration, and commercial application for activities under section 932(b). lignocellulose or hemicellulose, including cellulosic biomass, including— (c) ELECTRICITY TRANSMISSION AND DIS- barley grain, grapeseed, forest thinnings, (1) biomass conversion to heat and elec- TRIBUTION AND ENERGY ASSURANCE.—From rice bran, rice hulls, rice straw, soybean tricity; the amounts authorized under subsection (a), matter, sugarcane bagasse, and any crop the following sums are authorized for activi- (2) biomass conversion to liquid fuels; grown specifically for the purpose of pro- (3) biobased products; ties under section 933: ducing cellulosic feedstocks. (1) For fiscal year 2006, $130,000,000, of (4) integrated biorefineries that may SEC. 937. PROGRAMS. which $2,000,000 shall be for the program produce heat, electricity, liquid fuels, and (a) IN GENERAL.—The Secretary shall con- under section 933(c). biobased products; duct programs of renewable energy research, (2) For fiscal year 2007, $140,000,000. (5) cross-cutting activities on feedstocks development, demonstration, and commer- (3) For fiscal year 2008, $150,000,000. and enzymes; and cial application, including activities de- (4) For fiscal year 2009, $160,000,000. (6) life-cycle economic analysis. scribed in this subtitle. Such programs shall (b) BIOFUELS AND BIOBASED PRODUCTS.— (5) For fiscal year 2010, $165,000,000. be focused on the following objectives: The objectives of the biofuels and biobased Subtitle D—Renewable Energy (1) Increasing the conversion efficiency of products programs under paragraphs (2), (3), SEC. 935. FINDINGS. all forms of renewable energy through im- and (4) of subsection (a), and of the bio- Congress makes the following findings: proved technologies. refinery demonstration program under sub- (1) Renewable energy is a growth industry (2) Decreasing the cost of renewable energy section (c), shall be to develop, in partner- around the world. However, the United generation and delivery. ship with industry— States has not been investing as heavily as (3) Promoting the diversity of the energy (1) advanced biochemical and other countries, and is losing market share. supply. thermochemical conversion technologies ca- (2) Since 1996, the United States has lost (4) Decreasing the Nation’s dependence on pable of making high-value biobased chem- significant market share in the solar indus- foreign energy supplies. ical feedstocks and products, to substitute try, dropping from 44 percent of the world (5) Improving United States energy secu- for petroleum-based feedstocks and products, market to 13 percent in 2003. rity. biofuels that are price-competitive with gas- (3) In 2003, Japan spent more than (6) Decreasing the environmental impact of oline or diesel in either internal combustion $200,000,000 on solar research, development, energy-related activities. engines or fuel cell-powered vehicles, and demonstration, and commercial application (7) Increasing the export of renewable gen- biobased products from a variety of feed- and other incentives, and Germany provided eration equipment from the United States. stocks, including grains, cellulosic biomass, more than $750,000,000 in low cost financing (b) GOALS.— and agricultural byproducts; and for solar photovoltaic projects. This com- (1) INITIAL GOALS.—In accordance with the (2) advanced biotechnology processes capa- pares to United States Government spending performance plan and report requirements in ble of making biofuels and biobased prod- of $139,000,000 in 2003 for research, develop- section 4 of the Government Performance ucts, with emphasis on development of bio- ment, demonstration, and commercial appli- Results Act of 1993, the Secretary shall refinery technologies, including enzyme- cation and other incentives. transmit to the Congress, along with the based processing technologies.

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(c) BIOMASS INTEGRATED REFINERY DEM- gional Field Verification Program of the De- which may include any combination of ONSTRATION.— partment. State, local, and private funds, except that (1) IN GENERAL.—The Secretary shall con- SEC. 941. GEOTHERMAL. at least 10 percent of the funding must be duct a program to demonstrate the commer- The Secretary shall conduct a program of supplied by the State; cial application of at least 5 integrated bio- research, development, demonstration, and (2) limit awards for any single project to a refineries. The Secretary shall ensure geo- commercial application for geothermal en- maximum of $1,000,000; graphical distribution of biorefinery dem- ergy. The program shall focus on developing (3) prohibit any nongovernmental recipient onstrations under this subsection. The Sec- improved technologies for reducing the costs from receiving more than $1,000,000 per year; retary shall not provide more than of geothermal energy installations, includ- (4) endeavor to fund recipients in the com- $100,000,000 under this subsection for any sin- ing technologies for— mercial, industrial, institutional, govern- gle biorefinery demonstration. The Sec- (1) improving detection of geothermal re- mental, and residential sectors; retary shall award the biorefinery dem- sources; (5) limit State administrative costs to no onstrations so as to encourage— (2) decreasing drilling costs; more than 10 percent of the grant; (A) the demonstration of a wide variety of (3) decreasing maintenance costs through (6) report annually to the Department on— cellulosic biomass feedstocks; improved materials; (A) the amount of funds disbursed; (B) the commercial application of biomass (4) increasing the potential for other rev- (B) the amount of photovoltaics purchased; technologies for a variety of uses, includ- enue sources, such as mineral production; and ing— and (C) the results of the monitoring under (i) liquid transportation fuels; (5) increasing the understanding of res- paragraph (7); (ii) high-value biobased chemicals; ervoir life cycle and management. (7) provide for measurement and (iii) substitutes for petroleum-based feed- SEC. 942. PHOTOVOLTAIC DEMONSTRATION PRO- verification of the output of a representative stocks and products; and GRAM. sample of the photovoltaics systems dem- (iv) energy in the form of electricity or (a) IN GENERAL.—The Secretary shall es- onstrated throughout the average working useful heat; and tablish a program of grants to States to life of the systems, or at least 20 years; and (C) the demonstration of the collection and demonstrate advanced photovoltaic tech- (8) require that applicant buildings must treatment of a variety of biomass feedstocks. nology. have received an independent energy effi- (2) PROPOSALS.—Not later than 6 months (b) REQUIREMENTS.—(1) To receive funding ciency audit during the 6-month period pre- after the date of enactment of this Act, the under the program under this section, a ceding the filing of the application. Secretary shall solicit proposals for dem- State must submit a proposal that dem- (g) UNEXPENDED FUNDS.—If a State fails to onstration of advanced biorefineries. The onstrates, to the satisfaction of the Sec- expend any funds received under subsection Secretary shall select only proposals that— retary, that the State will meet the require- (b) or (c) within 3 years of receipt, such re- (A) demonstrate that the project will be ments of subsection (f). maining funds shall be returned to the able to operate profitably without direct (2) If a State has received funding under Treasury. (h) REPORTS.—The Secretary shall report Federal subsidy after initial construction this section for the preceding year, the State to Congress 5 years after funds are first dis- costs are paid; and must demonstrate, to the satisfaction of the tributed to the States under this section— (B) enable the biorefinery to be easily rep- Secretary, that it complied with the require- (1) the amount of photovoltaics dem- licated. ments of subsection (f) in carrying out the onstrated; (d) UNIVERSITY BIODIESEL PROGRAM.—The program during that preceding year, and (2) the number of projects undertaken; Secretary shall establish a demonstraton that it will do so in the future. (3) the administrative costs of the pro- program to determine the feasibility of the (3) Except as provided in subsection (c), gram; operation of diesel electric power generators, each State submitting a qualifying proposal (4) the amount of funds that each State has using biodiesel fuels, with ratings as high as shall receive funding under the program not received because of a failure to submit a B100 at a university electric generation facil- based on the proportion of United States qualifying proposal, as described in sub- ity. The program shall examine— population in the State according to the 2000 section (b)(3); (1) heat rates of diesel fuels with large census. In each fiscal year, the portion of (5) the results of the monitoring under sub- quantities of cellulosic content; funds attributable under this paragraph to section (f)(7); and (2) the reliability of operation of various States that have not submitted qualifying (6) the total amount of funds distributed, fuel blends; proposals in the time and manner specified including a breakdown by State. (3) performance in cold or freezing weath- by the Secretary shall be distributed pro er; rata to the States that have submitted quali- SEC. 943. ADDITIONAL PROGRAMS. (a) IN GENERAL.—The Secretary may con- (4) stability of fuel after extended storage; fying proposals in the specified time and duct research, development, demonstration, and manner. (c) COMPETITION.—If more than $80,000,000 and commercial application programs of— (5) other criteria, as determined by the is available for the program under this sec- (1) ocean energy, including wave energy; Secretary. tion for any fiscal year, the Secretary shall (2) kinetic hydro turbines; and (e) GRANTS.—Of the funds authorized to be allocate 75 percent of the funds available ac- (3) the combined use of renewable energy appropriated for activities authorized under cording to subsection (b), and shall award technologies with one another and with this section, not less than $5,000,000 for each the remaining 25 percent on a competitive other energy technologies. fiscal year shall be made available for grants basis to the States with the proposals the (b) MARINE RENEWABLE ENERGY STUDY.— to Historically Black Colleges and Univer- Secretary considers most likely to encour- (1) STUDY.—The Secretary shall enter into sities, Tribal Colleges, and Hispanic-Serving age the widespread adoption of photovoltaic an arrangement with the National Academy Institutions. technologies. of Sciences to conduct a study on— SEC. 940. WIND. (d) PROPOSALS.—Not later than 6 months (A) the feasibility of various methods of re- (a) PROGRAM.—The Secretary shall conduct after the date of enactment of this Act, and newable generation of energy from the a program of research, development, dem- in each subsequent fiscal year for the life of ocean, including energy from waves, tides, onstration, and commercial application for the program, the Secretary shall solicit pro- currents, and thermal gradients; and wind energy, including— posals from the States to participate in the (B) the research, development, demonstra- (1) low speed wind energy; program under this section. tion, and commercial application activities (2) offshore wind energy; (e) COMPETITIVE CRITERIA.—In awarding required to make marine renewable energy (3) testing and verification; and funds in a competitive allocation under sub- generation competitive with other forms of (4) distributed wind energy generation. section (c), the Secretary shall consider— electricity generation. (b) FACILITY.—The Secretary shall con- (1) the likelihood of a proposal to encour- (2) TRANSMITTAL.—Not later than 1 year struct and operate a research and testing fa- age the demonstration of, or lower the costs after the date of enactment of this Act, the cility capable of testing the largest wind tur- of, advanced photovoltaic technologies; and Secretary shall transmit the study to Con- bines that are expected to be manufactured (2) the extent to which a proposal is likely gress along with the Secretary’s rec- in the next 15 years. The Secretary shall con- to— ommendations for implementing the results sider the need for testing offshore turbine de- (A) maximize the amount of photovoltaics of the study. signs in siting the facility. All private users demonstrated; (c) RENEWABLE ENERGY IN PUBLIC BUILD- of the facility shall be required to pay the (B) maximize the proportion of non-Fed- INGS.— Department all costs associated with their eral cost share; and (1) DEMONSTRATION AND TECHNOLOGY TRANS- use of the facility, including capital costs (C) limit State administrative costs. FER PROGRAM.—The Secretary shall establish prorated at normal business amortization (f) STATE PROGRAM.—A program operated a program for the demonstration of innova- rates. by a State with funding under this section tive technologies for solar and other renew- (c) REGIONAL FIELD VERIFICATION PRO- shall provide competitive awards for the able energy sources in buildings owned or op- GRAM.—Of the funds authorized to be appro- demonstration of advanced photovoltaic erated by a State or local government, and priated for activities authorized under this technologies. Each State program shall— for the dissemination of information result- section, not less than $4,000,000 for each fis- (1) require a contribution of at least 60 per- ing from such demonstration to interested cal year shall be made available for the Re- cent per award from non-Federal sources, parties.

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(2) LIMIT ON FEDERAL FUNDING.—The Sec- (E) $150,000,000 shall be for carrying out the cost improvement and reliability, avail- retary shall provide under this subsection no photovoltaic demonstration program under ability, productivity, and component aging more than 40 percent of the incremental section 942. target levels for a wide range of nuclear en- costs of the solar or other renewable energy (4) For fiscal year 2009, $940,000,000, of ergy technologies, and any other such goals source project funded. which— the Secretary considers appropriate. (3) REQUIREMENT.—As part of the applica- (A) $250,000,000 shall be for carrying out the (2) SUBSEQUENT TRANSMITTALS.—The Sec- tion for awards under this subsection, the solar program under section 938; retary shall transmit to the Congress, along Secretary shall require all applicants— (B) $355,000,000 shall be for carrying out the with the President’s annual budget request (A) to demonstrate a continuing commit- bioenergy program under section 939, includ- for each fiscal year after 2007, a report con- ment to the use of solar and other renewable ing $175,000,000 for the biorefinery dem- taining— energy sources in buildings they own or op- onstration program under section 939(c); (A) a description, including quantitative erate; and (C) $65,000,000 shall be for carrying out the analysis, of progress in achieving perform- (B) to state how they expect any award to wind program under section 940, including ance goals transmitted under paragraph (1), further their transition to the significant $5,000,000 for the facility described in section as compared to the baselines transmitted use of renewable energy. 940(b); under paragraph (1); and SEC. 944. ANALYSIS AND EVALUATION. (D) $30,000,000 shall be for carrying out the (B) any amendments to such goals. (a) IN GENERAL.—The Secretary shall con- geothermal program under section 941; and (c) PUBLIC INPUT.—The Secretary shall duct analysis and evaluation in support of (E) $200,000,000 shall be for carrying out the consider advice from industry, universities, the renewable energy programs under this photovoltaic demonstration program under and other interested parties through seeking subtitle. These activities shall be used to section 942. comments in the Federal Register and other guide budget and program decisions, and (5) For fiscal year 2010, $1,125,000,000, of means before transmitting each report under shall include— which— subsection (b). (1) economic and technical analysis of re- (A) $300,000,000 shall be for carrying out the CHAPTER 1—NUCLEAR ENERGY newable energy potential, including resource solar program under section 938; RESEARCH PROGRAMS assessment; (B) $400,000,000 shall be for carrying out the (2) analysis of past program performance, SEC. 948. ADVANCED FUEL RECYCLING PRO- bioenergy program under section 939, includ- GRAM. both in terms of technical advances and in ing $200,000,000 for the biorefinery dem- market introduction of renewable energy; (a) IN GENERAL.—The Secretary shall con- onstration program under section 939(c); duct an advanced fuel recycling technology and (C) $65,000,000 shall be for carrying out the (3) any other analysis or evaluation that research, development, demonstration, and wind program under section 940, including commercial application program to evaluate the Secretary considers appropriate. $1,000,000 for the facility described in section (b) FUNDING.—The Secretary may des- fuel recycling or transmutation technologies 940(b); ignate up to 1 percent of the funds appro- which are proliferation-resistant and mini- (D) $30,000,000 shall be for carrying out the priated for carrying out this subtitle for mize environmental and public health and geothermal program under section 941; and analysis and evaluation activities under this safety impacts, as an alternative to aqueous section. (E) $300,000,000 shall be for carrying out the reprocessing technologies deployed as of the photovoltaic demonstration program under SEC. 945. AUTHORIZATION OF APPROPRIATIONS. date of enactment of this Act, in support of section 942. The following sums are authorized to be evaluation of alternative national strategies appropriated to the Secretary for the pur- Subtitle E—Nuclear Energy Programs for spent nuclear fuel and advanced reactor poses of carrying out this subtitle: SEC. 946. DEFINITION. concepts. The program shall be subject to (1) For fiscal year 2006, $465,000,000, of In this subtitle, the term ‘‘junior faculty’’ annual review by the Secretary’s Nuclear which— means a faculty member who was awarded a Energy Research Advisory Committee or (A) $100,000,000 shall be for carrying out the doctorate less than 10 years before receipt of other independent entity, as appropriate. solar program under section 938; an award from the grant program described (b) INTERNATIONAL COOPERATION.—The Sec- (B) $200,000,000 shall be for carrying out the in section 949(b)(2). retary shall seek opportunities to engage bioenergy program under section 939, includ- SEC. 947. PROGRAMS. international partners with expertise in ad- ing $100,000,000 for the biorefinery dem- (a) IN GENERAL.—The Secretary shall con- vanced fuel recycling technologies where onstration program under section 939(c); duct programs of civilian nuclear energy re- such partnerships may help achieve program (C) $55,000,000 shall be for carrying out the search, development, demonstration, and goals. wind program under section 940, including commercial application, including activities SEC. 949. UNIVERSITY NUCLEAR SCIENCE AND $10,000,000 for the facility described in sec- described in this subtitle. Programs under ENGINEERING SUPPORT. tion 940(b); this subtitle shall be focused on— (a) IN GENERAL.—The Secretary shall con- (D) $30,000,000 shall be for carrying out the (1) enhancing nuclear power’s viability as duct a program to invest in human resources geothermal program under section 941; and part of the United States energy portfolio; and infrastructure in the nuclear sciences (E) $50,000,000 shall be for carrying out the (2) providing the technical means to reduce and related fields, including health physics, photovoltaic demonstration program under the likelihood of nuclear proliferation; nuclear engineering, and radiochemistry, section 942. (3) maintaining a cadre of nuclear sci- consistent with Departmental missions re- (2) For fiscal year 2007, $605,000,000, of entists and engineers; lated to civilian nuclear research, develop- which— (4) maintaining National Laboratory and ment, demonstration, and commercial appli- (A) $140,000,000 shall be for carrying out the university nuclear programs, including their cation. solar program under section 938; infrastructure; (b) REQUIREMENTS.—In carrying out the (B) $245,000,000 shall be for carrying out the (5) supporting both individual researchers program under this section, the Secretary bioenergy program under section 939, includ- and multidisciplinary teams of researchers shall— ing $125,000,000 for the biorefinery dem- to pioneer new approaches in nuclear energy, (1) conduct a graduate and undergraduate onstration program under section 939(c); science, and technology; fellowship program to attract new and tal- (C) $60,000,000 shall be for carrying out the (6) developing, planning, constructing, ac- ented students, which may include fellow- wind program under section 940, including quiring, and operating special equipment and ships for students to spend time at National $15,000,000 for the facility described in sec- facilities for the use of researchers; Laboratories in the areas of nuclear science, tion 940(b); (7) supporting technology transfer and engineering, and health physics with a mem- (D) $30,000,000 shall be for carrying out the other appropriate activities to assist the nu- ber of the National Laboratory staff acting geothermal program under section 941; and clear energy industry, and other users of nu- as a mentor; (E) $100,000,000 shall be for carrying out the clear science and engineering, including ac- (2) conduct a junior faculty research initi- photovoltaic demonstration program under tivities addressing reliability, availability, ation grant program to assist universities in section 942. productivity, component aging, safety, and recruiting and retaining new faculty in the (3) For fiscal year 2008, $775,000,000, of security of nuclear power plants; and nuclear sciences and engineering by award- which— (8) reducing the environmental impact of ing grants to junior faculty for research on (A) $200,000,000 shall be for carrying out the nuclear energy-related activities. issues related to nuclear energy engineering solar program under section 938; (b) GOALS.— and science; (B) $310,000,000 shall be for carrying out the (1) INITIAL GOALS.—In accordance with the (3) support fundamental nuclear sciences, bioenergy program under section 939, includ- performance plan and report requirements in engineering, and health physics research ing $150,000,000 for the biorefinery dem- section 4 of the Government Performance through a nuclear engineering education and onstration program under section 939(c); Results Act of 1993, the Secretary shall research program; (C) $65,000,000 shall be for carrying out the transmit to the Congress, along with the (4) encourage collaborative nuclear re- wind program under section 940, including President’s annual budget request for fiscal search among industry, National Labora- $10,000,000 for the facility described in sec- year 2007, a report containing outcome meas- tories, and universities; and tion 940(b); ures with explicitly stated cost and perform- (5) support communication and outreach (D) $30,000,000 shall be for carrying out the ance baselines. The measures shall specify related to nuclear science, engineering, and geothermal program under section 941; and performance goals, with quantifiable 5-year health physics.

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(c) STRENGTHENING UNIVERSITY RESEARCH SEC. 954. NUCLEAR ENERGY RESEARCH AND DE- (3) $49,200,000 for fiscal year 2008. AND TRAINING REACTORS AND ASSOCIATED IN- VELOPMENT INFRASTRUCTURE (4) $55,000,000 for fiscal year 2009. FRASTRUCTURE.—In carrying out the program PLAN. (5) $60,000,000 for fiscal year 2010. under this section, the Secretary may sup- In carrying out section 919, the Secretary port— shall— CHAPTER 2—NEXT GENERATION (1) converting research reactors from high- (1) develop an inventory of nuclear science NUCLEAR PLANT PROGRAM enrichment fuels to low-enrichment fuels and engineering facilities, equipment, exper- SEC. 957. DEFINITIONS. tise, and other assets at all of the National and upgrading operational instrumentation; For purposes of this chapter: (2) consortia of universities to broaden ac- Laboratories; (2) develop a prioritized list of nuclear (1) CONSTRUCTION.—The term ‘‘construc- cess to university research reactors; tion’’ means the physical construction of the (3) student training programs, in collabora- science and engineering plant and equipment improvements needed at each of the National demonstration plant, and the physical con- tion with the United States nuclear indus- struction, purchase, or manufacture of try, in relicensing and upgrading reactors, Laboratories; (3) consider the available facilities and ex- equipment or components that are specifi- including through the provision of technical cally designed for the demonstration plant, assistance; and pertise at all National Laboratories and em- phasize investments which complement rath- but does not mean the design of the facility, (4) reactor improvements as part of a fo- equipment, or components. cused effort that emphasizes research, train- er than duplicate capabilities; and (4) develop a timeline and a proposed budg- (2) DEMONSTRATION PLANT.—The term ing, and education, including through the In- ‘‘demonstration plant’’ means an advanced novations in Nuclear Infrastructure and Edu- et for the completion of deferred mainte- nance on plant and equipment, fission reactor power plant constructed and cation Program or any similar program. operated in accordance with this chapter. (d) OPERATIONS AND MAINTENANCE.—Fund- with the goal of ensuring that Department (3) OPERATION.—The term ‘‘operation’’ ing for a project provided under this section programs under this subtitle will be gen- may be used for a portion of the operating means the operation of the demonstration erally recognized to be among the best in the plant, including general maintenance and and maintenance costs of a research reactor world. at a university used in the project. provision of power, heating and cooling, and SEC. 955. IDAHO NATIONAL LABORATORY FACILI- other building services that are specifically SEC. 950. UNIVERSITY-NATIONAL LABORATORY TIES PLAN. INTERACTIONS. for the demonstration plant, but does not (a) PLAN.—The Secretary shall develop a The Secretary shall conduct— mean operations that support other activi- comprehensive plan for the facilities at the ties colocated with the demonstration plant. (1) a fellowship program for professors at Idaho National Laboratory, especially tak- universities to spend sabbaticals at National ing into account the resources available at SEC. 958. NEXT GENERATION NUCLEAR POWER Laboratories in the areas of nuclear science other National Laboratories. In developing PLANT. and technology; and the plan, the Secretary shall— (a) IN GENERAL.—The Secretary shall con- (2) a visiting scientist program in which (1) evaluate the facilities planning proc- duct a program of research, development, National Laboratory staff can spend time in esses utilized by other physical science and demonstration, and commercial application academic nuclear science and engineering engineering research and development insti- of advanced nuclear fission reactor tech- departments. tutions, both in the United States and nology. The objective of this program shall SEC. 951. NUCLEAR POWER 2010 PROGRAM. abroad, that are generally recognized as be to demonstrate the technical and eco- The Secretary shall carry out a Nuclear being among the best in the world, and con- nomic feasibility of an advanced nuclear fis- Power 2010 Program, consistent with rec- sider how those processes might be adapted sion reactor power plant design for the com- ommendations in the October 2001 report en- toward developing such facilities plan; mercial production of electricity. titled ‘‘A Roadmap to Deploy New Nuclear (2) avoid duplicating, moving, or transfer- (b) RESEARCH AND DEVELOPMENT.—The pro- Power Plants in the United States by 2010’’ ring nuclear science and engineering facili- gram shall include research, development, issued by the Nuclear Energy Research Advi- ties, equipment, expertise, and other assets design, planning, and all other necessary ac- sory Committee of the Department. The Pro- that currently exist at other National Lab- tivities to support the construction and op- gram shall include— oratories; eration of the demonstration plant. (1) the expertise and capabilities of indus- (3) consider the establishment of a national try, universities, and National Laboratories (c) SUBSYSTEM DEMONSTRATIONS.—The Sec- transuranic analytic chemistry laboratory in evaluation of advanced nuclear fuel cycles retary shall support demonstration of ena- as a user facility at the Idaho National Lab- and fuels testing; bling technologies and subsystems and other oratory; (2) a variety of reactor designs suitable for research, development, demonstration, and (4) include a plan to develop, if feasible, both developed and developing nations; commercial application activities necessary the Advanced Test Reactor and Test Reactor (3) participation of international collabo- to support the activities in this chapter. Area into a user facility that is more readily rators in research, development, and design ONSTRUCTION AND PERATION accessible to academic and industrial re- (d) C O .—The efforts as appropriate; and searchers; program shall culminate in the construction (4) university and industry participation. (5) consider the establishment of a fast and operation of the demonstration plant SEC. 952. GENERATION IV NUCLEAR ENERGY SYS- neutron source as a user facility; based on a design selected by the Secretary TEMS INITIATIVE. (6) consider the establishment of new ‘‘hot in accordance with procedures described in The Secretary shall carry out a Generation cells’’ and the configuration of ‘‘hot cells’’ the plan required by section 960(c). The dem- IV Nuclear Energy Systems Initiative to de- most likely to advance research, develop- onstration plant shall be located and con- velop an overall technology plan and to sup- ment, demonstration, and commercial appli- structed within the United States and shall port research, development, demonstration, be operational, and capable of demonstrating and commercial application necessary to cation in nuclear science and engineering, especially in the context of the condition the commercial production of electricity, by make an informed technical decision about December 31, 2015. the most promising candidates for the even- and availability of these facilities elsewhere (e) LIMITATION.—No funds shall be ex- tual commercial application of advanced fis- in the National Laboratories; and (7) include a timeline and a proposed budg- pended for the construction or operation of sion reactor technology for the generation of the demonstration plant until 90 days have electricity. The Initiative shall examine ad- et for the completion of deferred mainte- nance on plant and equipment. elapsed after the transmission of the plan de- vanced proliferation-resistant and passively scribed in section 960(c). safe reactor designs, including designs that— (b) TRANSMITTAL TO CONGRESS.—Not later (1) are economically competitive with than one year after the date of enactment of SEC. 959. ADVISORY COMMITTEE. this Act, the Secretary shall transmit such other electric power generation plants; The Secretary shall appoint a Next Gen- plan to Congress. (2) have higher efficiency, lower cost, and eration Nuclear Power Plant Subcommittee improved safety compared to reactors in op- SEC. 956. AUTHORIZATION OF APPROPRIATIONS. of the Nuclear Energy Research Advisory eration on the date of enactment of this Act; (a) PROGRAM AUTHORIZATION.—The fol- Council to provide advice to the Secretary (3) use fuels that are proliferation-resist- lowing sums are authorized to be appro- on technical matters and program manage- ant and have substantially reduced produc- priated to the Secretary for the purposes of ment for the duration of the program and tion of high-level waste per unit of output; carrying out this chapter: construction project under this chapter. and (1) $407,000,000 for fiscal year 2006. (4) use improved instrumentation. (2) $427,000,000 for fiscal year 2007. SEC. 960. PROGRAM REQUIREMENTS. SEC. 953. CIVILIAN INFRASTRUCTURE AND FA- (3) $449,000,000 for fiscal year 2008. (a) PARTNERSHIPS.—In carrying out the CILITIES. (4) $471,000,000 for fiscal year 2009. program under this chapter, the Secretary The Secretary shall operate and maintain (5) $495,000,000 for fiscal year 2010. shall make use of partnerships with industry infrastructure and facilities to support the (b) UNIVERSITY SUPPORT.—Of the funds au- for the research, development, design, con- nuclear energy research, development, dem- thorized under subsection (a), the following struction, and operation of the demonstra- onstration, and commercial application pro- sums are authorized to be appropriated to tion plant. In establishing such partnerships, grams, including radiological facilities man- carry out section 949: the Secretary shall give preference to com- agement, isotope production, and facilities (1) $35,200,000 for fiscal year 2006. panies for which the principal base of oper- management. (2) $44,350,000 for fiscal year 2007. ations is located in the United States.

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(b) INTERNATIONAL COLLABORATION.—(1) (b) GOALS.— (b) COAL-BASED PROJECTS.—The coal-based The Secretary shall seek international co- (1) INITIAL GOALS.—In accordance with the projects authorized under this section shall operation, participation, and financial con- performance plan and report requirements in be consistent with the objective stated in tribution in this program, including assist- section 4 of the Government Performance subsection (a). The program shall emphasize ance from specialists or facilities from mem- Results Act of 1993, the Secretary shall carbon capture and sequestration tech- ber countries of the Generation IV Inter- transmit to the Congress, along with the nologies and gasification technologies, in- national Forum, the Russian Federation, or President’s annual budget request for fiscal cluding gasification combined cycle, gasifi- other international partners where such spe- year 2007, a report containing outcome meas- cation fuel cells, gasification coproduction, cialists or facilities provide access to cost-ef- ures with explicitly stated cost and perform- hybrid gasification/combustion, or other fective and relevant skills or test capabili- ance baselines. The measures shall specify technologies with the potential to address ties. production or efficiency performance goals, the capabilities described in paragraphs (4) (2) International activities shall be carried with quantifiable 5-year cost and energy sav- and (5) of subsection (a). out in consultation with the Generation IV ings target levels, for fossil energy, and any SEC. 964. OIL AND GAS RESEARCH AND DEVELOP- International Forum. other such goals the Secretary considers ap- MENT. (3) The program may include demonstra- propriate. The Secretary shall conduct a program of tion of selected program objectives in a part- (2) SUBSEQUENT TRANSMITTALS.—The Sec- oil and gas research, development, dem- ner nation. (c) PROGRAM PLAN.—Not later than one retary shall transmit to the Congress, along onstration, and commercial application, year after the date of enactment of this Act, with the President’s annual budget request whose objective shall be to advance the the Secretary shall transmit to Congress a for each fiscal year after 2007, a report con- science and technology available to domestic comprehensive program plan. The program taining— petroleum producers, particularly inde- plan shall— (A) a description, including quantitative pendent operators, to minimize the economic (1) describe the plan for development, se- analysis, of progress in achieving perform- dislocation caused by the decline of domestic lection, management, ownership, operation, ance goals transmitted under paragraph (1), supplies of oil and natural gas resources by and decommissioning of the demonstration as compared to the baselines transmitted focusing research on— plant; under paragraph (1); and (1) assisting small domestic producers of (2) identify program milestones and a (B) any amendments to such goals. oil and gas to develop new and improved timeline for achieving these milestones; (c) COVERED ACTIVITIES.—The Secretary technologies to discover and extract addi- (3) provide for development of risk-based shall ensure that the goals stated in sub- tional supplies; criteria for any future commercial develop- section (b) are illustrative of the outcomes (2) developing technologies to extract ment of a reactor architecture based on that necessary to promote acceptance of the pro- methane hydrates in an environmentally of the demonstration plant; grams’ efforts in the marketplace, but at a sound manner; (4) include a projected budget required to minimum shall encompass the following (3) improving the ability of the domestic meet the milestones; and areas: industry to extract hydrocarbons from (5) include an explanation of any major (1) Coal gasifiers. known reservoirs and classes of reservoirs; program decisions that deviate from pro- (2) Turbine generators, including both nat- and gram advice given to the Secretary by the ural gas and syngas fueled. (4) reducing the cost, and improving the ef- advisory committee established under sec- (3) Oxygen separation devices, hydrogen ficiency and environmental performance, of tion 959. separation devices, and carbon dioxide sepa- oil and gas exploration and extraction activi- SEC. 961. AUTHORIZATION OF APPROPRIATIONS. ration technologies. ties, focusing especially on unconventional (a) RESEARCH, DEVELOPMENT, AND DESIGN (4) Coal gas and post-combustion emission sources such as tar sands, heavy oil, and PROGRAMS.—The following sums are author- cleanup and disposal equipment, including shale oil. ized to be appropriated to the Secretary for carbon dioxide capture and disposal equip- SEC. 965. TRANSPORTATION FUELS. the purposes of carrying out this chapter ex- ment. The Secretary shall conduct a program of cept for the demonstration plant activities (5) Average per-foot drilling costs for oil transportation fuels research, development, described in subsection (b): and gas, segregated by appropriate drilling demonstration, and commercial application, (1) For fiscal year 2006, $150,000,000. regimes, including onshore versus offshore whose objective shall be to increase the price (2) For fiscal year 2007, $150,000,000. and depth categories. elasticity of oil supply and demand by focus- (3) For fiscal year 2008, $150,000,000. (6) Production of liquid fuels from non- ing research on— (4) For fiscal year 2009, $150,000,000. traditional feedstocks, including syngas, bio- (1) reducing the cost of producing transpor- (5) For fiscal year 2010, $150,000,000. mass, methane, and combinations thereof. tation fuels from coal and natural gas; and (b) REACTOR CONSTRUCTION.—There are au- (7) Environmental discharge per barrel of (2) indirect liquefaction of coal and bio- thorized to be appropriated to the Secretary oil or oil-equivalent production, including mass. such sums as may be necessary for operation reinjected waste. SEC. 966. FUEL CELLS. and construction of the demonstration plant (8) Surface disturbance on both a per-well (a) PROGRAM.—The Secretary shall conduct under this chapter. The Secretary shall not and per-barrel of oil or oil-equivalent pro- a program of research, development, dem- spend more than $500,000,000 for demonstra- duction basis. onstration, and commercial application of tion plant reactor construction activities (d) PUBLIC INPUT.—The Secretary shall fuel cells for low-cost, high-efficiency, fuel- under this chapter. consider advice from industry, universities, flexible, modular power systems. Subtitle F—Fossil Energy and other interested parties through seeking (b) DEMONSTRATION.—The program under CHAPTER 1—RESEARCH PROGRAMS comments in the Federal Register and other this section shall include demonstration of means before transmitting each report under SEC. 962. ENHANCED FOSSIL ENERGY RESEARCH fuel cell proton exchange membrane tech- AND DEVELOPMENT PROGRAMS. subsection (b). nology for commercial, residential, and (a) IN GENERAL.—The Secretary shall, in SEC. 963. FOSSIL RESEARCH AND DEVELOPMENT. transportation applications, and distributed conjunction with industry, conduct fossil en- (a) OBJECTIVES.—The Secretary shall con- generation systems, utilizing improved man- ergy research, development, demonstration, duct a program of fossil research, develop- ufacturing production and processes. and commercial applications programs, in- ment, demonstration, and commercial appli- SEC. 967. CARBON DIOXIDE CAPTURE RESEARCH cluding activities under this chapter, with cation, whose objective shall be to reduce AND DEVELOPMENT. the goal of improving the efficiency, effec- emissions from fossil fuel use by developing (a) PROGRAM.—The Secretary of Energy tiveness, and environmental performance of technologies, including precombustion tech- shall support a 10-year program of research fossil energy production, upgrading, conver- nologies, by 2015 with the capability of— and development aimed at developing carbon sion, and consumption. Such programs shall (1) dramatically increasing electricity gen- dioxide capture technologies for pulverized be focused on— erating efficiencies of coal and natural gas; coal combustion units. The program shall (1) increasing the conversion efficiency of (2) improving combined heat and power focus on— all forms of fossil energy through improved thermal efficiencies; (1) developing add-on carbon dioxide cap- technologies; (3) improving fuels utilization efficiency of ture technologies, such as adsorption and ab- (2) decreasing the cost of all fossil energy production of liquid transportation fuels sorption techniques and chemical processes, production, generation, and delivery; from coal; to remove carbon dioxide from flue gas, pro- (3) promoting diversity of energy supply; (4) achieving near-zero emissions of mer- ducing concentrated streams of carbon diox- (4) decreasing the Nation’s dependence on cury and of emissions that form fine par- ide potentially amenable to sequestration; foreign energy supplies; ticles, smog, and acid rain; (2) combustion technologies that would di- (5) improving United States energy secu- (5) reducing carbon dioxide emissions by at rectly produce concentrated streams of car- rity; least 40 percent through efficiency improve- bon dioxide potentially amenable to seques- (6) decreasing the environmental impact of ments and by 100 percent with sequestration; tration; and energy-related activities; and and (3) increasing the efficiency of the overall (7) increasing the export of fossil energy- (6) improved reliability, efficiency, reduc- combustion system in order to reduce the related equipment, technology, and services tions of air pollutant emissions, and reduc- amount of carbon dioxide emissions released from the United States. tions in solid waste disposal requirements. from the system per megawatt generated.

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(b) CARBON SEQUESTRATION.—In conjunc- Secretary shall consult regularly with the this Act. The Secretary shall select the pro- tion with the program under subsection (a), Secretary of the Interior. gram consortium not later than 270 days the Secretary shall continue pursuing a ro- SEC. 970. ULTRA-DEEPWATER AND UNCONVEN- after such date of enactment. bust carbon sequestration program with the TIONAL ONSHORE NATURAL GAS (5) APPLICATION.—Applicants shall submit private sector, through regional carbon se- AND OTHER PETROLEUM RESEARCH a proposal including such information as the questration partnerships. AND DEVELOPMENT PROGRAM. Secretary may require. At a minimum, each (a) IN GENERAL.—The Secretary shall carry SEC. 968. AUTHORIZATION OF APPROPRIATIONS. proposal shall— out the activities under section 969, to maxi- (a) IN GENERAL.—The following sums are (A) list all members of the consortium; mize the value of natural gas and other pe- authorized to be appropriated to the Sec- (B) fully describe the structure of the con- troleum resources of the United States, by retary for the purposes of carrying out this sortium, including any provisions relating to increasing the supply of such resources, chapter: intellectual property; and through reducing the cost and increasing the (1) For fiscal year 2006, $583,000,000. (C) describe how the applicant would carry efficiency of exploration for and production (2) For fiscal year 2007, $611,000,000. of such resources, while improving safety out the activities of the program consortium (3) For fiscal year 2008, $626,000,000. and minimizing environmental impacts. under this section. (4) For fiscal year 2009, $641,000,000. (b) ROLE OF THE SECRETARY.—The Sec- (6) ELIGIBILITY.—To be eligible to be se- (5) For fiscal year 2010, $657,000,000. retary shall have ultimate responsibility for, lected as the program consortium, an appli- (b) ALLOCATION.—From amounts author- and oversight of, all aspects of the program cant must be an entity whose members have ized under subsection (a), there are author- under this section. collectively demonstrated capabilities and ized to be appropriated for carrying out the (c) ROLE OF THE PROGRAM CONSORTIUM.— experience in planning and managing re- program under section 967— (1) IN GENERAL.—The Secretary shall con- search, development, demonstration, and (1) $20,000,000 for fiscal year 2006; tract with a consortium to— commercial application programs for ultra- (2) $25,000,000 for fiscal year 2007; (A) manage awards pursuant to subsection deepwater and unconventional natural gas or (3) $30,000,000 for fiscal year 2008; (f)(3); other petroleum exploration or production. (4) $35,000,000 for fiscal year 2009; and (B) issue project solicitations upon ap- (7) FOCUS AREAS FOR AWARDS.— (5) $40,000,000 for fiscal year 2010. proval of the Secretary; (A) ULTRA-DEEPWATER RESOURCES.—Awards CHAPTER 2—ULTRA-DEEPWATER AND UN- (C) make project awards upon approval of from allocations under section 976(d)(1) shall CONVENTIONAL NATURAL GAS AND the Secretary; focus on the development and demonstration OTHER PETROLEUM RESOURCES (D) disburse funds awarded under sub- of individual exploration and production SEC. 969. PROGRAM AUTHORITY. section (f) as directed by the Secretary in ac- technologies as well as integrated systems (a) IN GENERAL.—The Secretary shall carry cordance with the annual plan under sub- technologies including new architectures for out a program under this chapter of re- section (e); and production in ultra-deepwater. search, development, demonstration, and (E) carry out other activities assigned to (B) UNCONVENTIONAL RESOURCES.—Awards commercial application of technologies for the program consortium by this section. from allocations under section 976(d)(2) shall ultra-deepwater and unconventional natural (2) LIMITATION.—The Secretary may not as- focus on areas including advanced coalbed gas and other petroleum resource explo- sign any activities to the program consor- methane, deep drilling, natural gas produc- ration and production, including addressing tium except as specifically authorized under tion from tight sands, natural gas produc- the technology challenges for small pro- this section. tion from gas shales, stranded gas, innova- ducers, safe operations, and environmental (3) CONFLICT OF INTEREST.— tive exploration and production techniques, mitigation (including reduction of green- (A) PROCEDURES.—The Secretary shall es- enhanced recovery techniques, and environ- house gas emissions and sequestration of tablish procedures— mental mitigation of unconventional natural carbon). (i) to ensure that each board member, offi- gas and other petroleum resources explo- (b) PROGRAM ELEMENTS.—The program cer, or employee of the program consortium ration and production. under this chapter shall address the fol- who is in a decisionmaking capacity under (C) SMALL PRODUCERS.—Awards from allo- lowing areas, including improving safety and subsection (f)(3) shall disclose to the Sec- cations under section 976(d)(3) shall be made minimizing environmental impacts of activi- retary any financial interests in, or financial to consortia consisting of small producers or ties within each area: relationships with, applicants for or recipi- organized primarily for the benefit of small (1) Ultra-deepwater architecture and tech- ents of awards under this section, including producers, and shall focus on areas including nology, including drilling to formations in those of his or her spouse or minor child, un- complex geology involving rapid changes in the Outer Continental Shelf to depths great- less such relationships or interests would be the type and quality of the oil and gas res- er than 15,000 feet. considered to be remote or inconsequential; ervoirs across the reservoir; low reservoir (2) Unconventional natural gas and other and pressure; unconventional natural gas res- petroleum resource exploration and produc- (ii) to require any board member, officer, ervoirs in coalbeds, deep reservoirs, tight tion technology. or employee with a financial relationship or sands, or shales; and unconventional oil res- (3) The technology challenges of small pro- interest disclosed under clause (i) to recuse ervoirs in tar sands and oil shales. ducers. himself or herself from any oversight under (8) CRITERION.—The Secretary shall con- (4) Complementary research performed by subsection (f)(4) with respect to such appli- sider the amount of the fee an applicant pro- the National Energy Technology Laboratory cant or recipient. poses to receive under subsection (g) in se- for the United States Department of Energy. (B) FAILURE TO COMPLY.—The Secretary lecting a consortium under this section. (c) LIMITATION ON LOCATION OF FIELD AC- may disqualify an application or revoke an TIVITIES.—Field activities under the program award under this section if a board member, (e) ANNUAL PLAN.— under this chapter shall be carried out officer, or employee has failed to comply (1) IN GENERAL.—The program under this only— with procedures required under subparagraph section shall be carried out pursuant to an (1) in— (A)(ii). annual plan prepared by the Secretary in ac- (A) areas in the territorial waters of the (d) SELECTION OF THE PROGRAM CONSOR- cordance with paragraph (2). United States not under any Outer Conti- TIUM.— (2) DEVELOPMENT.— nental Shelf moratorium as of September 30, (1) IN GENERAL.—The Secretary shall select (A) SOLICITATION OF RECOMMENDATIONS.— 2002; the program consortium through an open, Before drafting an annual plan under this (B) areas onshore in the United States on competitive process. subsection, the Secretary shall solicit spe- public land administered by the Secretary of (2) MEMBERS.—The program consortium cific written recommendations from the pro- the Interior available for oil and gas leasing, may include corporations, trade associa- gram consortium for each element to be ad- where consistent with applicable law and tions, institutions of higher education, Na- dressed in the plan, including those described land use plans; and tional Laboratories, or other research insti- in paragraph (4). The program consortium (C) areas onshore in the United States on tutions. After submitting a proposal under shall submit its recommendations in the State or private land, subject to applicable paragraph (4), the program consortium may form of a draft annual plan. law; and not add members without the consent of the (B) SUBMISSION OF RECOMMENDATIONS; (2) with the approval of the appropriate Secretary. OTHER COMMENT.—The Secretary shall sub- Federal or State land management agency or (3) TAX STATUS.—The program consortium mit the recommendations of the program private land owner. shall be an entity that is exempt from tax consortium under subparagraph (A) to the (d) ACTIVITIES AT THE NATIONAL ENERGY under section 501(c)(3) of the Internal Rev- Ultra-Deepwater Advisory Committee estab- TECHNOLOGY LABORATORY.—The Secretary, enue Code of 1986 on the date of enactment of lished under section 972(a) and to the Uncon- through the National Energy Technology this Act. ventional Resources Technology Advisory Laboratory, shall carry out a program of re- (4) SCHEDULE.—Not later than 90 days after Committee established under section 972(b), search and other activities complementary the date of enactment of this Act, the Sec- and such Advisory Committees shall provide to and supportive of the research programs retary shall solicit proposals from eligible to the Secretary written comments by a date under subsection (b). consortia to perform the duties in subsection determined by the Secretary. The Secretary (e) CONSULTATION WITH SECRETARY OF THE (c)(1), which shall be submitted not later may also solicit comments from any other INTERIOR.—In carrying out this part, the than 180 days after the date of enactment of experts.

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(C) CONSULTATION.—The Secretary shall (i) ACTIVITIES BY THE UNITED STATES GEO- tional Resources Technology Advisory Com- consult regularly with the program consor- LOGICAL SURVEY.—The Secretary of the Inte- mittee. tium throughout the preparation of the an- rior, through the United States Geological (2) MEMBERSHIP.—The advisory committee nual plan. Survey, shall, where appropriate, carry out under this subsection shall be composed of (3) PUBLICATION.—The Secretary shall programs of long-term research to com- members appointed by the Secretary includ- transmit to Congress and publish in the Fed- plement the programs under this section. ing— eral Register the annual plan, along with SEC. 971. ADDITIONAL REQUIREMENTS FOR (A) a majority of members who are em- any written comments received under para- AWARDS. ployees or representatives of independent graph (2)(A) and (B). (a) DEMONSTRATION PROJECTS.—An applica- producers of natural gas and other petro- (4) CONTENTS.—The annual plan shall de- tion for an award under this chapter for a leum, including small producers; scribe the ongoing and prospective activities demonstration project shall describe with (B) individuals with extensive research ex- of the program under this section and shall specificity the intended commercial use of perience or operational knowledge of uncon- include— the technology to be demonstrated. ventional natural gas and other petroleum (A) a list of any solicitations for awards to (b) FLEXIBILITY IN LOCATING DEMONSTRA- resource exploration and production; carry out research, development, demonstra- TION PROJECTS.—Subject to the limitation in (C) individuals broadly representative of tion, or commercial application activities, section 969(c), a demonstration project under the affected interests in unconventional nat- including the topics for such work, who this chapter relating to an ultra-deepwater ural gas and other petroleum resource explo- would be eligible to apply, selection criteria, technology or an ultra-deepwater architec- ration and production, including interests in and the duration of awards; and ture may be conducted in deepwater depths. environmental protection and safe oper- (B) a description of the activities expected (c) INTELLECTUAL PROPERTY AGREE- ations; of the program consortium to carry out sub- MENTS.—If an award under this chapter is (D) no individuals who are Federal employ- section (f)(3). made to a consortium (other than the pro- ees; and (5) ESTIMATES OF INCREASED ROYALTY RE- gram consortium), the consortium shall pro- (E) no individuals who are board members, CEIPTS.—The Secretary, in consultation with vide to the Secretary a signed contract officers, or employees of the program consor- the Secretary of the Interior, shall provide agreed to by all members of the consortium tium. an annual report to Congress with the Presi- describing the rights of each member to in- (3) DUTIES.—The advisory committee under dent’s budget on the estimated cumulative tellectual property used or developed under this subsection shall— increase in Federal royalty receipts (if any) the award. (A) advise the Secretary on the develop- resulting from the implementation of this (d) TECHNOLOGY TRANSFER.—2.5 percent of ment and implementation of activities under part. The initial report under this paragraph the amount of each award made under this this chapter related to unconventional nat- shall be submitted in the first President’s chapter shall be designated for technology ural gas and other petroleum resources; and budget following the completion of the first transfer and outreach activities under this (B) carry out section 970(e)(2)(B). annual plan required under this subsection. chapter. (4) COMPENSATION.—A member of the advi- (f) AWARDS.— (e) COST SHARING REDUCTION FOR INDE- sory committee under this subsection shall (1) IN GENERAL.—Upon approval of the Sec- PENDENT PRODUCERS.—In applying the cost serve without compensation but shall receive retary the program consortium shall make sharing requirements under section 911 to an travel expenses in accordance with applica- awards to carry out research, development, award under this chapter the Secretary may ble provisions under subchapter I of chapter demonstration, and commercial application reduce or eliminate the non-Federal require- 57 of title 5, United States Code. activities under the program under this sec- ment if the Secretary determines that the (c) PROHIBITION.—No advisory committee tion. The program consortium shall not be reduction is necessary and appropriate con- established under this section shall make eligible to receive such awards, but members sidering the technological risks involved in recommendations on funding awards to par- of the program consortium may receive such the project. ticular consortia or other entities, or for spe- awards. SEC. 972. ADVISORY COMMITTEES. cific projects. (2) PROPOSALS.—Upon approval of the Sec- (a) ULTRA-DEEPWATER ADVISORY COM- SEC. 973. LIMITS ON PARTICIPATION. retary the program consortium shall solicit MITTEE.— An entity shall be eligible to receive an proposals for awards under this subsection in (1) ESTABLISHMENT.—Not later than 270 award under this chapter only if the Sec- such manner and at such time as the Sec- days after the date of enactment of this Act, retary finds— retary may prescribe, in consultation with the Secretary shall establish an advisory (1) that the entity’s participation in the the program consortium. committee to be known as the Ultra-Deep- program under this chapter would be in the (3) OVERSIGHT.— water Advisory Committee. economic interest of the United States; and (A) IN GENERAL.—The program consortium EMBERSHIP.—The advisory committee (2) that either— shall oversee the implementation of awards (2) M under this subsection shall be composed of (A) the entity is a United States-owned en- under this subsection, consistent with the members appointed by the Secretary includ- tity organized under the laws of the United annual plan under subsection (e), including ing— States; or disbursing funds and monitoring activities (A) individuals with extensive research ex- (B) the entity is organized under the laws carried out under such awards for compli- perience or operational knowledge of off- of the United States and has a parent entity ance with the terms and conditions of the shore natural gas and other petroleum explo- organized under the laws of a country that awards. ration and production; affords— (B) EFFECT.—Nothing in subparagraph (A) (i) to United States-owned entities oppor- shall limit the authority or responsibility of (B) individuals broadly representative of the affected interests in ultra-deepwater nat- tunities, comparable to those afforded to any the Secretary to oversee awards, or limit the other entity, to participate in any coopera- authority of the Secretary to review or re- ural gas and other petroleum production, in- cluding interests in environmental protec- tive research venture similar to those au- voke awards. thorized under this part; (g) ADMINISTRATIVE COSTS.— tion and safe operations; (C) no individuals who are Federal employ- (ii) to United States-owned entities local (1) IN GENERAL.—To compensate the pro- investment opportunities comparable to gram consortium for carrying out its activi- ees; and (D) no individuals who are board members, those afforded to any other entity; and ties under this section, the Secretary shall (iii) adequate and effective protection for provide to the program consortium funds officers, or employees of the program consor- tium. the intellectual property rights of United sufficient to administer the program. This States-owned entities. compensation may include a management (3) DUTIES.—The advisory committee under SEC. 974. SUNSET. fee consistent with Department of Energy this subsection shall— The authority provided by this chapter contracting practices and procedures. (A) advise the Secretary on the develop- shall terminate on September 30, 2014. (2) ADVANCE.—The Secretary shall advance ment and implementation of programs under funds to the program consortium upon selec- this chapter related to ultra-deepwater nat- SEC. 975. DEFINITIONS. tion of the consortium, which shall be de- ural gas and other petroleum resources; and In this part: ducted from amounts to be provided under (B) carry out section 970(e)(2)(B). (1) DEEPWATER.—The term ‘‘deepwater’’ paragraph (1). (4) COMPENSATION.—A member of the advi- means a water depth that is greater than 200 (h) AUDIT.—The Secretary shall retain an sory committee under this subsection shall but less than 1,500 meters. independent, commercial auditor to deter- serve without compensation but shall receive (2) INDEPENDENT PRODUCER OF OIL OR GAS.— mine the extent to which funds provided to travel expenses in accordance with applica- (A) IN GENERAL.—The term ‘‘independent the program consortium, and funds provided ble provisions under subchapter I of chapter producer of oil or gas’’ means any person under awards made under subsection (f), 57 of title 5, United States Code. that produces oil or gas other than a person have been expended in a manner consistent (b) UNCONVENTIONAL RESOURCES TECH- to whom subsection (c) of section 613A of the with the purposes and requirements of this NOLOGY ADVISORY COMMITTEE.— Internal Revenue Code of 1986 does not apply part. The auditor shall transmit a report an- (1) ESTABLISHMENT.—Not later than 270 by reason of paragraph (2) (relating to cer- nually to the Secretary, who shall transmit days after the date of enactment of this Act, tain retailers) or paragraph (4) (relating to the report to Congress, along with a plan to the Secretary shall establish an advisory certain refiners) of section 613A(d) of such remedy any deficiencies cited in the report. committee to be known as the Unconven- Code.

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(B) RULES FOR APPLYING PARAGRAPHS (2) (2) to other funds receiving monies from (c) TECHNICAL AND CONFORMING AMEND- AND (4) OF SECTION 613A(d).—For purposes of Federal oil and gas leasing programs, includ- MENTS.—(1) Section 5315 of title 5, United subparagraph (A), paragraphs (2) and (4) of ing— States Code, is amended by— section 613A(d) of the Internal Revenue Code (A) any recipients pursuant to section 8(g) (A) striking ‘‘Director, Office of Science, of 1986 shall be applied by substituting ‘‘cal- of the Outer Continental Shelf Lands Act (43 Department of Energy.’’; and endar year’’ for ‘‘taxable year’’ each place it U.S.C. 1337(g)); (B) striking ‘‘Assistant Secretaries of En- appears in such paragraphs. (B) the Land and Water Conservation ergy (6)’’ and inserting ‘‘Assistant Secre- (3) PROGRAM CONSORTIUM.—The term ‘‘pro- Fund, pursuant to section 2(c) of the Land taries of Energy (8)’’. gram consortium’’ means the consortium se- and Water Conservation Fund Act of 1965 (16 (2) The table of contents for the Depart- lected under section 970(d). U.S.C. 4601–5(c)); ment of Energy Organization Act (42 U.S.C. (4) REMOTE OR INCONSEQUENTIAL.—The term (C) the Historic Preservation Fund, pursu- 7101 note) is amended— ‘‘remote or inconsequential’’ has the mean- ant to section 108 of the National Historic (A) by striking ‘‘Section 209’’ and inserting ing given that term in regulations issued by Preservation Act (16 U.S.C. 470h); and ‘‘Sec. 209’’; the Office of Government Ethics under sec- (D) the Secure Energy Reinvestment Fund. (B) by striking ‘‘213.’’ and inserting ‘‘Sec. tion 208(b)(2) of title 18, United States Code. (d) ALLOCATION.—Amounts obligated from 213.’’; (5) SMALL PRODUCER.—The term ‘‘small the Fund under subsection (a)(1) in each fis- (C) by striking ‘‘214.’’ and inserting ‘‘Sec. producer’’ means an entity organized under cal year shall be allocated as follows: 214.’’; the laws of the United States with produc- (1) 35 percent shall be for activities under (D) by striking ‘‘215.’’ and inserting ‘‘Sec. tion levels of less than 1,000 barrels per day section 969(b)(1). 215.’’; and of oil equivalent. (2) 32.5 percent shall be for activities under (E) by striking ‘‘216.’’ and inserting ‘‘Sec. (6) ULTRA-DEEPWATER.—The term ‘‘ultra- section 969(b)(2). 216.’’. deepwater’’ means a water depth that is (3) 7.5 percent shall be for activities under TITLE X—DEPARTMENT OF ENERGY equal to or greater than 1,500 meters. section 969(b)(3). MANAGEMENT (7) ULTRA-DEEPWATER ARCHITECTURE.—The (4) 25 percent shall be for complementary SEC. 1002. OTHER TRANSACTIONS AUTHORITY. term ‘‘ultra-deepwater architecture’’ means research under section 969(b)(4) and other ac- Section 646 of the Department of Energy the integration of technologies for the explo- tivities under section 969(b) to include pro- Organization Act (42 U.S.C. 7256) is amended ration for, or production of, natural gas or gram direction funds, overall program over- by adding at the end the following: other petroleum resources located at ultra- sight, contract management, and the estab- ‘‘(g)(1) In addition to other authorities deepwater depths. lishment and operation of a technical com- granted to the Secretary under law, the Sec- (8) ULTRA-DEEPWATER TECHNOLOGY.—The mittee to ensure that in-house research ac- retary may exercise the same authority (sub- term ‘‘ultra-deepwater technology’’ means a tivities funded under subsection 969(b)(4) are ject to the same restrictions and conditions) discrete technology that is specially suited technically complementary to, and not du- with respect to such research and projects as to address 1 or more challenges associated plicative of, research conducted under sec- the Secretary of Defense may exercise under with the exploration for, or production of, tion 969(b)(1), (2), and (3). section 2371 of title 10, United States Code, natural gas or other petroleum resources lo- (e) FUND.—There is hereby established in except for subsections (b) and (f) of such sec- cated at ultra-deepwater depths. the Treasury of the United States a separate tion 2371. Such other transactions shall not (9) UNCONVENTIONAL NATURAL GAS AND fund to be known as the ‘‘Ultra-Deepwater be subject to the provisions of section 9 of OTHER PETROLEUM RESOURCE.—The term ‘‘un- and Unconventional Natural Gas and Other the Federal Nonnuclear Energy Research and conventional natural gas and other petro- Petroleum Research Fund’’. Development Act of 1974 (42 U.S.C. 5908) or leum resource’’ means natural gas and other Subtitle G—Improved Coordination and Man- section 152 of the Atomic Energy Act of 1954 petroleum resource located onshore in an agement of Civilian Science and Tech- (42 U.S.C. 2182). economically inaccessible geological forma- nology Programs ‘‘(2)(A) The Secretary may, under the au- tion, including resources of small producers. SEC. 978. IMPROVED COORDINATION AND MAN- thority of paragraph (1), carry out prototype SEC. 976. FUNDING. AGEMENT OF CIVILIAN SCIENCE projects in accordance with the requirements (a) IN GENERAL.— AND TECHNOLOGY PROGRAMS. and conditions provided for carrying out pro- (1) OIL AND GAS LEASE INCOME.—For each of (a) RECONFIGURATION OF POSITION OF DIREC- totype projects under section 845 of the Na- fiscal years 2005 through 2014, from any ex- TOR OF THE OFFICE OF SCIENCE.—Section 209 tional Defense Authorization Act for Fiscal cess Federal royalties derived from Federal of the Department of Energy Organization Year 1994 (Public Law 103–160; 10 U.S.C. 2371 onshore and offshore oil and gas leases issued Act (42 U.S.C. 7139) is amended to read as fol- note), including that, to the maximum ex- under the Outer Continental Shelf Lands Act lows: tent practicable, competitive procedures and the Mineral Leasing Act which are de- ‘‘OFFICE OF SCIENCE shall be used when entering into agreements posited in the Treasury, and after prior dis- ‘‘SEC. 209. (a) There shall be within the De- to carry out projects under subsection (a) of tributions as described in subsection (c) have partment an Office of Science, to be headed that section and that the period of authority been made, all excess Federal royalties up to by an Assistant Secretary of Science, who to carry out projects under such subsection $200,000,000 shall be deposited into the Ultra- shall be appointed by the President, by and (a) terminates as provided in subsection (g) Deepwater and Unconventional Natural Gas with the advice and consent of the Senate, of that section. and Other Petroleum Research Fund (in this and who shall be compensated at the rate ‘‘(B) In applying the requirements and con- section referred to as the Fund). provided for level IV of the Executive Sched- ditions of section 845 of the National Defense (2) DEFINITIONS.—For purposes of para- ule under section 5315 of title 5, United Authorization Act for Fiscal Year 1994 under graph (1)— States Code. this subsection— (A) excess Federal royalty receipts are the ‘‘(b) The Assistant Secretary of Science ‘‘(i) subsection (c) of that section shall amount calculated on the basis of the dif- shall be in addition to the Assistant Secre- apply with respect to prototype projects car- ference between the prevailing market prices taries provided for under section 203 of this ried out under this paragraph; and upon which the royalty payment was made Act. ‘‘(ii) the Director of the Office of Manage- and 110 percent of the projected market ‘‘(c) It shall be the duty and responsibility ment and Budget shall perform the functions prices for that fiscal year, as contained in of the Assistant Secretary of Science to of the Secretary of Defense under subsection the economic assumptions underlying the carry out the fundamental science and engi- (d) of that section. Concurrent Resolution on the Budget, under neering research functions of the Depart- ‘‘(C) The Secretary may exercise authority section 301 of the Congressional Budget and ment, including the responsibility for policy under this subsection for a project only if au- Impoundment Control Act or 1974; and and management of such research, as well as thorized by the Director of the Office of Man- (B) the term ‘‘royalties’’ excludes proceeds other functions vested in the Secretary agement and Budget to use the authority for from the sale of royalty production taken in which he may assign to the Assistant Sec- such project. kind and royalty production that is trans- retary.’’. ‘‘(D) The annual report of the head of an ferred under section 27(a)(3) of the Outer (b) ADDITIONAL ASSISTANT SECRETARY POSI- executive agency that is required under sub- Continental Shelf Lands Act (43 U.S.C. TION TO ENABLE IMPROVED MANAGEMENT OF section (h) of section 2371 of title 10, United 1353(a)(3)). NUCLEAR ENERGY ISSUES.—(1) Section 203(a) States Code, as applied to the head of the ex- (b) OBLIGATIONAL AUTHORITY.—Monies in of the Department of Energy Organization ecutive agency by subsection (a), shall be the Fund shall be available to the Secretary Act (42 U.S.C. 7133(a)) is amended by striking submitted to Congress. for obligation under this chapter without fis- ‘‘There shall be in the Department six As- ‘‘(3) Not later than 90 days after the date of cal year limitation, to remain available sistant Secretaries’’ and inserting ‘‘Except enactment of this subsection, the Secretary, until expended. as provided in section 209, there shall be in in consultation with the Director of the Of- (c) PRIOR DISTRIBUTIONS.—The distribu- the Department seven Assistant Secre- fice of Management and Budget, shall pre- tions described in subsection (a) are those re- taries’’. scribe guidelines for using other transactions quired by law— (2) It is the sense of the Congress that the authorized by paragraph (1). Such guidelines (1) to States and to the Reclamation Fund leadership for departmental missions in nu- shall be published in the Federal Register for under the Mineral Leasing Act (30 U.S.C. clear energy should be at the Assistant Sec- public comment under rulemaking proce- 191(a)); and retary level. dures of the Department.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00112 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.059 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2265 ‘‘(4) The authority of the Secretary under includes requirements for the operation of cordance with subsection (e) (including limi- this subsection may be delegated only to an existing bulk-power system facilities, includ- tations on activities, functions, or oper- officer of the Department who is appointed ing cybersecurity protection, and the design ations, or other appropriate sanctions); by the President by and with the advice and of planned additions or modifications to such ‘‘(D) provide for reasonable notice and op- consent of the Senate and may not be dele- facilities to the extent necessary to provide portunity for public comment, due process, gated to any other person. for reliable operation of the bulk-power sys- openness, and balance of interests in devel- ‘‘(5)(A) Not later than September 31, 2006, tem, but the term does not include any re- oping reliability standards and otherwise ex- the Comptroller General of the United States quirement to enlarge such facilities or to ercising its duties; and shall report to Congress on the Department’s construct new transmission capacity or gen- ‘‘(E) provide for taking, after certification, use of the authorities granted under this sec- eration capacity. appropriate steps to gain recognition in Can- tion, including the ability to attract non- ‘‘(4) The term ‘reliable operation’ means ada and Mexico. traditional government contractors and operating the elements of the bulk-power The total amount of all dues, fees, and other whether additional safeguards are needed system within equipment and electric sys- charges collected by the ERO in each of the with respect to the use of such authorities. tem thermal, voltage, and stability limits so fiscal years 2006 through 2015 and allocated ‘‘(B) In this section, the term ‘nontradi- that instability, uncontrolled separation, or under subparagraph (B) shall not exceed tional Government contractor’ has the same cascading failures of such system will not $50,000,000. meaning as the term ‘nontraditional defense occur as a result of a sudden disturbance, in- ‘‘(d) RELIABILITY STANDARDS.—(1) The contractor’ as defined in section 845(e) of the cluding a cybersecurity incident, or unan- Electric Reliability Organization shall file National Defense Authorization Act for Fis- ticipated failure of system elements. each reliability standard or modification to cal Year 1994 (Public Law 103–160; 10 U.S.C. ‘‘(5) The term ‘Interconnection’ means a a reliability standard that it proposes to be 2371 note).’’. geographic area in which the operation of made effective under this section with the SEC. 1003. UNIVERSITY COLLABORATION. bulk-power system components is syn- Commission. Not later than 2 years after the date of en- chronized such that the failure of 1 or more ‘‘(2) The Commission may approve, by rule actment of this Act, the Secretary of Energy of such components may adversely affect the or order, a proposed reliability standard or shall transmit to the Congress a report that ability of the operators of other components modification to a reliability standard if it examines the feasibility of promoting col- within the system to maintain reliable oper- determines that the standard is just, reason- laborations between major universities and ation of the facilities within their control. able, not unduly discriminatory or pref- other colleges and universities in grants, ‘‘(6) The term ‘transmission organization’ erential, and in the public interest. The contracts, and cooperative agreements made means a Regional Transmission Organiza- Commission shall give due weight to the by the Secretary for energy projects. For tion, Independent System Operator, inde- technical expertise of the Electric Reli- purposes of this section, major universities pendent transmission provider, or other ability Organization with respect to the con- are schools listed by the Carnegie Founda- transmission organization finally approved tent of a proposed standard or modification tion as Doctoral Research Extensive Univer- by the Commission for the operation of to a reliability standard and to the technical sities. The Secretary shall also consider pro- transmission facilities. expertise of a regional entity organized on viding incentives to increase the inclusion of ‘‘(7) The term ‘regional entity’ means an an Interconnection-wide basis with respect small institutions of higher education, in- entity having enforcement authority pursu- to a reliability standard to be applicable within that Interconnection, but shall not cluding minority-serving institutions, in en- ant to subsection (e)(4). defer with respect to the effect of a standard ergy grants, contracts, and cooperative ‘‘(8) The term ‘cybersecurity incident’ on competition. A proposed standard or agreements. means a malicious act or suspicious event that disrupts, or was an attempt to disrupt, modification shall take effect upon approval SEC. 1004. SENSE OF CONGRESS. the operation of those programmable elec- by the Commission. It is the sense of the Congress that— tronic devices and communication networks ‘‘(3) The Electric Reliability Organization (1) the Secretary of Energy should develop including hardware, software and data that shall rebuttably presume that a proposal and implement more stringent procurement are essential to the reliable operation of the from a regional entity organized on an Inter- and inventory controls, including controls bulk power system. connection-wide basis for a reliability stand- on the purchase card program, to prevent ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) ard or modification to a reliability standard waste, fraud, and abuse of taxpayer funds by The Commission shall have jurisdiction, to be applicable on an Interconnection-wide employees and contractors of the Depart- within the United States, over the ERO cer- basis is just, reasonable, and not unduly dis- ment of Energy; and tified by the Commission under subsection criminatory or preferential, and in the pub- (2) the Department’s Inspector General (c), any regional entities, and all users, own- lic interest. should continue to closely review purchase ers and operators of the bulk-power system, ‘‘(4) The Commission shall remand to the card purchases and other procurement and including but not limited to the entities de- Electric Reliability Organization for further inventory practices at the Department. scribed in section 201(f), for purposes of ap- consideration a proposed reliability standard TITLE XII—ELECTRICITY proving reliability standards established or a modification to a reliability standard that the Commission disapproves in whole or SEC. 1201. SHORT TITLE. under this section and enforcing compliance with this section. All users, owners and oper- in part. This title may be cited as the ‘‘Electric Re- ators of the bulk-power system shall comply ‘‘(5) The Commission, upon its own motion liability Act of 2005’’. with reliability standards that take effect or upon complaint, may order the Electric Subtitle A—Reliability Standards under this section. Reliability Organization to submit to the SEC. 1211. ELECTRIC RELIABILITY STANDARDS. ‘‘(2) The Commission shall issue a final Commission a proposed reliability standard (a) IN GENERAL.—Part II of the Federal rule to implement the requirements of this or a modification to a reliability standard Power Act (16 U.S.C 824 et seq.) is amended section not later than 180 days after the date that addresses a specific matter if the Com- by adding at the end the following: of enactment of this section. mission considers such a new or modified re- ‘‘(c) CERTIFICATION.—Following the liability standard appropriate to carry out ‘‘SEC. 215. ELECTRIC RELIABILITY. issuance of a Commission rule under sub- this section. ‘‘(a) DEFINITIONS.—For purposes of this sec- section (b)(2), any person may submit an ap- ‘‘(6) The final rule adopted under sub- tion: plication to the Commission for certification section (b)(2) shall include fair processes for ‘‘(1) The term ‘bulk-power system’ means— as the Electric Reliability Organization. The the identification and timely resolution of ‘‘(A) facilities and control systems nec- Commission may certify 1 such ERO if the any conflict between a reliability standard essary for operating an interconnected elec- Commission determines that such ERO— and any function, rule, order, tariff, rate tric energy transmission network (or any ‘‘(1) has the ability to develop and enforce, schedule, or agreement accepted, approved, portion thereof); and subject to subsection (e)(2), reliability stand- or ordered by the Commission applicable to a ‘‘(B) electric energy from generation facili- ards that provide for an adequate level of re- transmission organization. Such trans- ties needed to maintain transmission system liability of the bulk-power system; and mission organization shall continue to com- reliability. ‘‘(2) has established rules that— ply with such function, rule, order, tariff, The term does not include facilities used in ‘‘(A) assure its independence of the users rate schedule or agreement accepted ap- the local distribution of electric energy. and owners and operators of the bulk-power proved, or ordered by the Commission until— ‘‘(2) The terms ‘Electric Reliability Orga- system, while assuring fair stakeholder rep- ‘‘(A) the Commission finds a conflict exists nization’ and ‘ERO’ mean the organization resentation in the selection of its directors between a reliability standard and any such certified by the Commission under sub- and balanced decisionmaking in any ERO provision; section (c) the purpose of which is to estab- committee or subordinate organizational ‘‘(B) the Commission orders a change to lish and enforce reliability standards for the structure; such provision pursuant to section 206 of this bulk-power system, subject to Commission ‘‘(B) allocate equitably reasonable dues, part; and review. fees, and other charges among end users for ‘‘(C) the ordered change becomes effective ‘‘(3) The term ‘reliability standard’ means all activities under this section; under this part. a requirement, approved by the Commission ‘‘(C) provide fair and impartial procedures If the Commission determines that a reli- under this section, to provide for reliable op- for enforcement of reliability standards ability standard needs to be changed as a re- eration of the bulk-power system. The term through the imposition of penalties in ac- sult of such a conflict, it shall order the ERO

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00113 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.059 H20PT1 H2266 CONGRESSIONAL RECORD — HOUSE April 20, 2005 to develop and file with the Commission a ERO or a regional entity to ensure compli- is just, reasonable, not unduly discrimina- modified reliability standard under para- ance with a reliability standard or any Com- tory or preferential, and in the public inter- graph (4) or (5) of this subsection. mission order affecting the ERO or a re- est, whether fees proposed to be assessed ‘‘(e) ENFORCEMENT.—(1) The ERO may im- gional entity. within the region are just, reasonable, not pose, subject to paragraph (2), a penalty on a ‘‘(6) Any penalty imposed under this sec- unduly discriminatory or preferential, and in user or owner or operator of the bulk-power tion shall bear a reasonable relation to the the public interest and any other responsibil- system for a violation of a reliability stand- seriousness of the violation and shall take ities requested by the Commission. The Com- ard approved by the Commission under sub- into consideration the efforts of such user, mission may give deference to the advice of section (d) if the ERO, after notice and an owner, or operator to remedy the violation any such regional advisory body if that body opportunity for a hearing— in a timely manner. is organized on an Interconnection-wide ‘‘(A) finds that the user or owner or oper- ‘‘(f) CHANGES IN ELECTRIC RELIABILITY OR- basis. ator has violated a reliability standard ap- GANIZATION RULES.—The Electric Reliability ‘‘(k) ALASKA AND HAWAII.—The provisions proved by the Commission under subsection Organization shall file with the Commission of this section do not apply to Alaska or Ha- (d); and for approval any proposed rule or proposed waii.’’. ‘‘(B) files notice and the record of the pro- rule change, accompanied by an explanation (b) STATUS OF ERO.—The Electric Reli- ceeding with the Commission. of its basis and purpose. The Commission, ability Organization certified by the Federal ‘‘(2) A penalty imposed under paragraph (1) upon its own motion or complaint, may pro- Energy Regulatory Commission under sec- may take effect not earlier than the 31st day pose a change to the rules of the ERO. A pro- tion 215(c) of the Federal Power Act and any after the ERO files with the Commission no- posed rule or proposed rule change shall take regional entity delegated enforcement au- tice of the penalty and the record of pro- effect upon a finding by the Commission, thority pursuant to section 215(e)(4) of that ceedings. Such penalty shall be subject to re- after notice and opportunity for comment, Act are not departments, agencies, or instru- view by the Commission, on its own motion that the change is just, reasonable, not un- mentalities of the United States Govern- or upon application by the user, owner or op- duly discriminatory or preferential, is in the ment. erator that is the subject of the penalty filed public interest, and satisfies the require- (c) LIMITATION ON ANNUAL APPROPRIA- within 30 days after the date such notice is ments of subsection (c). TIONS.—There is authorized to be appro- filed with the Commission. Application to ‘‘(g) RELIABILITY REPORTS.—The ERO shall priated not more than $50,000,000 per year for the Commission for review, or the initiation conduct periodic assessments of the reli- fiscal years 2006 through 2015 for all activi- of review by the Commission on its own mo- ability and adequacy of the bulk-power sys- ties under the amendment made by sub- tion, shall not operate as a stay of such pen- tem in North America. section (a). alty unless the Commission otherwise orders ‘‘(h) COORDINATION WITH CANADA AND MEX- Subtitle B—Transmission Infrastructure upon its own motion or upon application by ICO.—The President is urged to negotiate Modernization the user, owner or operator that is the sub- international agreements with the govern- ject of such penalty. In any proceeding to re- ments of Canada and Mexico to provide for SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES. view a penalty imposed under paragraph (1), effective compliance with reliability stand- (a) AMENDMENT OF FEDERAL POWER ACT.— the Commission, after notice and oppor- ards and the effectiveness of the ERO in the Part II of the Federal Power Act is amended tunity for hearing (which hearing may con- United States and Canada or Mexico. by adding at the end the following: sist solely of the record before the ERO and ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO opportunity for the presentation of sup- shall have authority to develop and enforce ‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC porting reasons to affirm, modify, or set compliance with reliability standards for TRANSMISSION FACILITIES. aside the penalty), shall by order affirm, set only the bulk-power system. ‘‘(a) DESIGNATION OF NATIONAL INTEREST aside, reinstate, or modify the penalty, and, ‘‘(2) This section does not authorize the ELECTRIC TRANSMISSION CORRIDORS.— if appropriate, remand to the ERO for fur- ERO or the Commission to order the con- ‘‘(1) TRANSMISSION CONGESTION STUDY.— ther proceedings. The Commission shall im- struction of additional generation or trans- Within 1 year after the enactment of this plement expedited procedures for such hear- mission capacity or to set and enforce com- section, and every 3 years thereafter, the ings. pliance with standards for adequacy or safe- Secretary of Energy, in consultation with af- ‘‘(3) On its own motion or upon complaint, ty of electric facilities or services. fected States, shall conduct a study of elec- the Commission may order compliance with ‘‘(3) Nothing in this section shall be con- tric transmission congestion. After consid- a reliability standard and may impose a pen- strued to preempt any authority of any ering alternatives and recommendations alty against a user or owner or operator of State to take action to ensure the safety, from interested parties, including an oppor- the bulk-power system if the Commission adequacy, and reliability of electric service tunity for comment from affected States, the finds, after notice and opportunity for a within that State, as long as such action is Secretary shall issue a report, based on such hearing, that the user or owner or operator not inconsistent with any reliability stand- study, which may designate any geographic of the bulk-power system has engaged or is ard, except that the State of New York may area experiencing electric energy trans- about to engage in any acts or practices that establish rules that result in greater reli- mission capacity constraints or congestion constitute or will constitute a violation of a ability within that State, as long as such ac- that adversely affects consumers as a na- reliability standard. tion does not result in lesser reliability out- tional interest electric transmission cor- ‘‘(4) The Commission shall issue regula- side the State than that provided by the reli- ridor. The Secretary shall conduct the study tions authorizing the ERO to enter into an ability standards. and issue the report in consultation with any agreement to delegate authority to a re- ‘‘(4) Within 90 days of the application of appropriate regional entity referenced in gional entity for the purpose of proposing re- the Electric Reliability Organization or section 215 of this Act. liability standards to the ERO and enforcing other affected party, and after notice and op- ‘‘(2) CONSIDERATIONS.—In determining reliability standards under paragraph (1) if— portunity for comment, the Commission whether to designate a national interest ‘‘(A) the regional entity is governed by— shall issue a final order determining whether electric transmission corridor referred to in ‘‘(i) an independent board; a State action is inconsistent with a reli- paragraph (1) under this section, the Sec- ‘‘(ii) a balanced stakeholder board; or ability standard, taking into consideration retary may consider whether— ‘‘(iii) a combination independent and bal- any recommendation of the ERO. ‘‘(A) the economic vitality and develop- anced stakeholder board. ‘‘(5) The Commission, after consultation ment of the corridor, or the end markets ‘‘(B) the regional entity otherwise satisfies with the ERO and the State taking action, served by the corridor, may be constrained the provisions of subsection (c)(1) and (2); may stay the effectiveness of any State ac- by lack of adequate or reasonably priced and tion, pending the Commission’s issuance of a electricity; ‘‘(C) the agreement promotes effective and final order. ‘‘(B)(i) economic growth in the corridor, or efficient administration of bulk-power sys- ‘‘(j) REGIONAL ADVISORY BODIES.—The the end markets served by the corridor, may tem reliability. Commission shall establish a regional advi- be jeopardized by reliance on limited sources The Commission may modify such delega- sory body on the petition of at least 2⁄3 of the of energy; and tion. The ERO and the Commission shall States within a region that have more than ‘‘(ii) a diversification of supply is war- rebuttably presume that a proposal for dele- 1⁄2 of their electric load served within the re- ranted; gation to a regional entity organized on an gion. A regional advisory body shall be com- ‘‘(C) the energy independence of the United Interconnection-wide basis promotes effec- posed of 1 member from each participating States would be served by the designation; tive and efficient administration of bulk- State in the region, appointed by the Gov- ‘‘(D) the designation would be in the inter- power system reliability and should be ap- ernor of each State, and may include rep- est of national energy policy; and proved. Such regulation may provide that resentatives of agencies, States, and prov- ‘‘(E) the designation would enhance na- the Commission may assign the ERO’s au- inces outside the United States. A regional tional defense and homeland security. thority to enforce reliability standards advisory body may provide advice to the ‘‘(b) CONSTRUCTION PERMIT.—Except as pro- under paragraph (1) directly to a regional en- Electric Reliability Organization, a regional vided in subsection (i), the Commission is tity consistent with the requirements of this entity, or the Commission regarding the gov- authorized, after notice and an opportunity paragraph. ernance of an existing or proposed regional for hearing, to issue a permit or permits for ‘‘(5) The Commission may take such action entity within the same region, whether a the construction or modification of electric as is necessary or appropriate against the standard proposed to apply within the region transmission facilities in a national interest

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electric transmission corridor designated by ‘‘(g) COMPENSATION.—Any exercise of emi- ‘‘(B) key issues of concern to the agencies the Secretary under subsection (a) if the nent domain authority pursuant to this sec- and public. Commission finds that— tion shall be considered a taking of private ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW ‘‘(1)(A) a State in which the transmission property for which just compensation is due. AND RECORD OF DECISION.—As lead agency facilities are to be constructed or modified is Just compensation shall be an amount equal head, the Secretary of Energy, in consulta- without authority to— to the full fair market value of the property tion with the affected agencies, shall prepare ‘‘(i) approve the siting of the facilities; or taken on the date of the exercise of eminent a single environmental review document, ‘‘(ii) consider the interstate benefits ex- domain authority, except that the compensa- which shall be used as the basis for all deci- pected to be achieved by the proposed con- tion shall exceed fair market value if nec- sions on the proposed project under Federal struction or modification of transmission fa- essary to make the landowner whole for de- law. The document may be an environmental cilities in the State; creases in the value of any portion of the assessment or environmental impact state- ‘‘(B) the applicant for a permit is a trans- land not subject to eminent domain. Any ment under the National Environmental Pol- mitting utility under this Act but does not parcel of land acquired by eminent domain icy Act of 1969 if warranted, or such other qualify to apply for a permit or siting ap- under this subsection shall be transferred form of analysis as may be warranted. The proval for the proposed project in a State be- back to the owner from whom it was ac- Secretary of Energy and the heads of other cause the applicant does not serve end-use quired (or his heirs or assigns) if the land is agencies shall streamline the review and per- customers in the State; or not used for the construction or modification mitting of transmission and distribution fa- ‘‘(C) a State commission or other entity of electric transmission facilities within a cilities within corridors designated under that has authority to approve the siting of reasonable period of time after the acquisi- section 503 of the Federal Land Policy and the facilities has— tion. Other than construction, modification, Management Act (43 U.S.C. 1763) by fully ‘‘(i) withheld approval for more than 1 year operation, or maintenance of electric trans- taking into account prior analyses and deci- after the filing of an application pursuant to mission facilities and related facilities, prop- sions relating to the corridors. Such docu- applicable law seeking approval or 1 year erty acquired under subsection (e) may not ment shall include consideration by the rel- after the designation of the relevant na- be used for any purpose (including use for evant agencies of any applicable criteria or tional interest electric transmission cor- any heritage area, recreational trail, or other matters as required under applicable ridor, whichever is later; or park) without the consent of the owner of laws. ‘‘(ii) conditioned its approval in such a the parcel from whom the property was ac- ‘‘(4) APPEALS.—In the event that any agen- manner that the proposed construction or quired (or the owner’s heirs or assigns). cy has denied a Federal authorization re- modification will not significantly reduce quired for a transmission or distribution fa- transmission congestion in interstate com- ‘‘(h) COORDINATION OF FEDERAL AUTHORIZA- cility, or has failed to act by the deadline es- merce or is not economically feasible; TIONS FOR TRANSMISSION AND DISTRIBUTION tablished by the Secretary pursuant to this ‘‘(2) the facilities to be authorized by the FACILITIES.— section for deciding whether to issue the au- permit will be used for the transmission of ‘‘(1) LEAD AGENCY.—If an applicant, or pro- thorization, the applicant or any State in electric energy in interstate commerce; spective applicant, for a Federal authoriza- which the facility would be located may file ‘‘(3) the proposed construction or modifica- tion related to an electric transmission or an appeal with the Secretary, who shall, in tion is consistent with the public interest; distribution facility so requests, the Depart- consultation with the affected agency, re- ‘‘(4) the proposed construction or modifica- ment of Energy (DOE) shall act as the lead view the denial or take action on the pend- tion will significantly reduce transmission agency for purposes of coordinating all appli- ing application. Based on the overall record congestion in interstate commerce and pro- cable Federal authorizations and related en- and in consultation with the affected agency, tects or benefits consumers; and vironmental reviews of the facility. For pur- the Secretary may then either issue the nec- ‘‘(5) the proposed construction or modifica- poses of this subsection, the term ‘Federal essary authorization with any appropriate tion is consistent with sound national en- authorization’ means any authorization re- conditions, or deny the application. The Sec- ergy policy and will enhance energy inde- quired under Federal law in order to site a retary shall issue a decision within 90 days of pendence. transmission or distribution facility, includ- the filing of the appeal. In making a decision ‘‘(c) PERMIT APPLICATIONS.—Permit appli- ing but not limited to such permits, special under this paragraph, the Secretary shall cations under subsection (b) shall be made in use authorizations, certifications, opinions, comply with applicable requirements of Fed- writing to the Commission. The Commission or other approvals as may be required, eral law, including any requirements of the shall issue rules setting forth the form of the whether issued by a Federal or a State agen- Endangered Species Act, the Clean Water application, the information to be contained cy. To the maximum extent practicable Act, the National Forest Management Act, in the application, and the manner of service under applicable Federal law, the Secretary the National Environmental Policy Act of of notice of the permit application upon in- of Energy shall coordinate this Federal au- 1969, and the Federal Land Policy and Man- terested persons. thorization and review process with any In- agement Act. ‘‘(d) COMMENTS.—In any proceeding before dian tribes, multi-State entities, and State ‘‘(5) CONFORMING REGULATIONS AND MEMO- the Commission under subsection (b), the agencies that are responsible for conducting RANDA OF UNDERSTANDING.—Not later than 18 Commission shall afford each State in which any separate permitting and environmental months after the date of enactment of this a transmission facility covered by the per- reviews of the facility, to ensure timely and section, the Secretary of Energy shall issue mit is or will be located, each affected Fed- efficient review and permit decisions. any regulations necessary to implement this eral agency and Indian tribe, private prop- ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead subsection. Not later than 1 year after the erty owners, and other interested persons, a agency, the Department of Energy, in con- date of enactment of this section, the Sec- reasonable opportunity to present their sultation with agencies responsible for Fed- retary and the heads of all Federal agencies views and recommendations with respect to eral authorizations and, as appropriate, with with authority to issue Federal authoriza- the need for and impact of a facility covered Indian tribes, multi-State entities, and State tions shall enter into Memoranda of Under- by the permit. agencies that are willing to coordinate their standing to ensure the timely and coordi- ‘‘(e) RIGHTS-OF-WAY.—In the case of a per- own separate permitting and environmental nated review and permitting of electricity mit under subsection (b) for electric trans- reviews with the Federal authorization and transmission and distribution facilities. The mission facilities to be located on property environmental reviews, shall establish head of each Federal agency with authority other than property owned by the United prompt and binding intermediate milestones to issue a Federal authorization shall des- States or a State, if the permit holder can- and ultimate deadlines for the review of, and ignate a senior official responsible for, and not acquire by contract, or is unable to agree Federal authorization decisions relating to, dedicate sufficient other staff and resources with the owner of the property to the com- the proposed facility. The Secretary of En- to ensure, full implementation of the DOE pensation to be paid for, the necessary right- ergy shall ensure that once an application regulations and any Memoranda. Interested of-way to construct or modify such trans- has been submitted with such data as the Indian tribes, multi-State entities, and State mission facilities, the permit holder may ac- Secretary considers necessary, all permit de- agencies may enter such Memoranda of Un- quire the right-of-way by the exercise of the right of eminent domain in the district court cisions and related environmental reviews derstanding. of the United States for the district in which under all applicable Federal laws shall be ‘‘(6) DURATION AND RENEWAL.—Each Fed- the property concerned is located, or in the completed within 1 year or, if a requirement eral land use authorization for an electricity appropriate court of the State in which the of another provision of Federal law makes transmission or distribution facility shall be property is located. The practice and proce- this impossible, as soon thereafter as is prac- issued— dure in any action or proceeding for that ticable. The Secretary of Energy also shall ‘‘(A) for a duration, as determined by the purpose in the district court of the United provide an expeditious pre-application mech- Secretary of Energy, commensurate with the States shall conform as nearly as may be anism for prospective applicants to confer anticipated use of the facility, and with the practice and procedure in similar with the agencies involved to have each such ‘‘(B) with appropriate authority to manage action or proceeding in the courts of the agency determine and communicate to the the right-of-way for reliability and environ- State where the property is situated. prospective applicant within 60 days of when mental protection. ‘‘(f) STATE LAW.—Nothing in this section the prospective applicant submits a request Upon the expiration of any such authoriza- shall preclude any person from constructing for such information concerning— tion (including an authorization issued prior or modifying any transmission facility pur- ‘‘(A) the likelihood of approval for a poten- to enactment of this section), the authoriza- suant to State law. tial facility; and tion shall be reviewed for renewal taking

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00115 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.060 H20PT1 H2268 CONGRESSIONAL RECORD — HOUSE April 20, 2005 fully into account reliance on such elec- lands that will come up for renewal within may accept and use funds contributed by an- tricity infrastructure, recognizing its impor- the following 5, 10, and 15 year periods, and other entity for the purpose of carrying out tance for public health, safety and economic a description of how the Secretaries plan to the Project. welfare and as a legitimate use of Federal manage such renewals. (2) AVAILABILITY.—The contributed funds lands. SEC. 1222. THIRD-PARTY FINANCE. shall be available for expenditure for the ‘‘(7) MAINTAINING AND ENHANCING THE (a) EXISTING FACILITIES.—The Secretary of purpose of carrying out the Project— TRANSMISSION INFRASTRUCTURE.—In exer- Energy (hereinafter in this section referred (A) without fiscal year limitation; and cising the responsibilities under this section, to as the ‘‘Secretary’’), acting through the (B) as if the funds had been appropriated the Secretary of Energy shall consult regu- Administrator of the Western Area Power specifically for that Project. larly with the Federal Energy Regulatory Administration (hereinafter in this section (3) ALLOCATION OF COSTS.—In carrying out Commission (FERC), FERC-approved electric referred to as ‘‘WAPA’’), or through the Ad- a Project under subsection (a) or (b), any reliability organizations (including related ministrator of the Southwestern Power Ad- costs of the Project not paid for by contribu- regional entities), and FERC-approved Re- ministration (hereinafter in this section re- tions from another entity shall be collected gional Transmission Organizations and Inde- ferred to as ‘‘SWPA’’), or both, may design, through rates charged to customers using pendent System Operators. develop, construct, operate, maintain, or the new transmission capability provided by ‘‘(i) INTERSTATE COMPACTS.—The consent of own, or participate with other entities in de- the Project and allocated equitably among Congress is hereby given for 3 or more con- signing, developing, constructing, operating, these project beneficiaries using the new tiguous States to enter into an interstate maintaining, or owning, an electric power transmission capability. compact, subject to approval by Congress, transmission facility and related facilities (d) RELATIONSHIP TO OTHER LAWS.—Noth- establishing regional transmission siting (‘‘Project’’) needed to upgrade existing trans- ing in this section affects any requirement agencies to facilitate siting of future electric mission facilities owned by SWPA or WAPA of— energy transmission facilities within such if the Secretary of Energy, in consultation (1) any Federal environmental law, includ- States and to carry out the electric energy with the applicable Administrator, deter- ing the National Environmental Policy Act transmission siting responsibilities of such mines that the proposed Project— of 1969 (42 U.S.C. 4321 et seq.); States. The Secretary of Energy may provide (1)(A) is located in a national interest elec- (2) any Federal or State law relating to the technical assistance to regional trans- tric transmission corridor designated under siting of energy facilities; or mission siting agencies established under section 216(a) of the Federal Power Act and (3) any existing authorizing statutes. this subsection. Such regional transmission will reduce congestion of electric trans- (e) SAVINGS CLAUSE.—Nothing in this sec- siting agencies shall have the authority to mission in interstate commerce; or tion shall constrain or restrict an Adminis- review, certify, and permit siting of trans- (B) is necessary to accommodate an actual trator in the utilization of other authority mission facilities, including facilities in na- or projected increase in demand for electric delegated to the Administrator of WAPA or tional interest electric transmission cor- transmission capacity; SWPA. ridors (other than facilities on property (2) is consistent with— (f) SECRETARIAL DETERMINATIONS.—Any de- owned by the United States). The Commis- (A) transmission needs identified, in a termination made pursuant to subsections sion shall have no authority to issue a per- transmission expansion plan or otherwise, by (a) or (b) shall be based on findings by the mit for the construction or modification of the appropriate Regional Transmission Orga- Secretary using the best available data. electric transmission facilities within a nization or Independent System Operator (as (g) MAXIMUM FUNDING AMOUNT.—The Sec- State that is a party to a compact, unless defined in the Federal Power Act), if any, or retary shall not accept and use more than the members of a compact are in disagree- approved regional reliability organization; $100,000,000 under subsection (c)(1) for the pe- ment and the Secretary makes, after notice and riod encompassing fiscal years 2006 through and an opportunity for a hearing, the finding (B) efficient and reliable operation of the 2015. described in subsection (b)(1)(C). transmission grid; and SEC. 1223. TRANSMISSION SYSTEM MONITORING. ‘‘(j) SAVINGS CLAUSE.—Nothing in this sec- (3) would be operated in conformance with Within 6 months after the date of enact- tion shall be construed to affect any require- prudent utility practice. ment of the environmental laws of the (b) NEW FACILITIES.—The Secretary, acting ment of this Act, the Secretary of Energy United States, including, but not limited to, through WAPA or SWPA, or both, may de- and the Federal Energy Regulatory Commis- the National Environmental Policy Act of sign, develop, construct, operate, maintain, sion shall study and report to Congress on 1969. Subsection (h)(4) of this section shall or own, or participate with other entities in the steps which must be taken to establish a not apply to any Congressionally-designated designing, developing, constructing, oper- system to make available to all transmission components of the National Wilderness Pres- ating, maintaining, or owning, a new electric system owners and Regional Transmission ervation System, the National Wild and Sce- power transmission facility and related fa- Organizations (as defined in the Federal nic Rivers System, or the National Park sys- cilities (‘‘Project’’) located within any State Power Act) within the Eastern and Western tem (including National Monuments there- in which WAPA or SWPA operates if the Sec- Interconnections real-time information on in). retary, in consultation with the applicable the functional status of all transmission ‘‘(k) ERCOT.—This section shall not apply Administrator, determines that the proposed lines within such Interconnections. In such within the area referred to in section Project— study, the Commission shall assess technical 212(k)(2)(A).’’. (1)(A) is located in an area designated means for implementing such transmission (b) REPORTS TO CONGRESS ON CORRIDORS under section 216(a) of the Federal Power Act information system and identify the steps AND RIGHTS OF WAY ON FEDERAL LANDS.—The and will reduce congestion of electric trans- the Commission or Congress must take to re- Secretary of the Interior, the Secretary of mission in interstate commerce; or quire the implementation of such system. Energy, the Secretary of Agriculture, and (B) is necessary to accommodate an actual SEC. 1224. ADVANCED TRANSMISSION TECH- the Chairman of the Council on Environ- or projected increase in demand for electric NOLOGIES. mental Quality shall, within 90 days of the transmission capacity; (a) AUTHORITY.—The Federal Energy Regu- date of enactment of this subsection, submit (2) is consistent with— latory Commission, in the exercise of its au- a joint report to Congress identifying each of (A) transmission needs identified, in a thorities under the Federal Power Act and the following: transmission expansion plan or otherwise, by the Public Utility Regulatory Policies Act of (1) All existing designated transmission the appropriate Regional Transmission Orga- 1978, shall encourage the deployment of ad- and distribution corridors on Federal land nization or Independent System Operator, if vanced transmission technologies. and the status of work related to proposed any, or approved regional reliability organi- (b) DEFINITION.—For the purposes of this transmission and distribution corridor des- zation; and section, the term ‘‘advanced transmission ignations under Title V of the Federal Land (B) efficient and reliable operation of the technologies’’ means technologies that in- Policy and Management Act (43 U.S.C. 1761 transmission grid; crease the capacity, efficiency, or reliability et seq.), the schedule for completing such (3) will be operated in conformance with of existing or new transmission facilities, in- work, any impediments to completing the prudent utility practice; cluding, but not limited to— work, and steps that Congress could take to (4) will be operated by, or in conformance (1) high-temperature lines (including expedite the process. with the rules of, the appropriate (A) Re- superconducting cables); (2) The number of pending applications to gional Transmission Organization or Inde- (2) underground cables; locate transmission and distribution facili- pendent System Operator, if any, or (B) if (3) advanced conductor technology (includ- ties on Federal lands, key information relat- such an organization does not exist, regional ing advanced composite conductors, high- ing to each such facility, how long each ap- reliability organization; and temperature low-sag conductors, and fiber plication has been pending, the schedule for (5) will not duplicate the functions of exist- optic temperature sensing conductors); issuing a timely decision as to each facility, ing transmission facilities or proposed facili- (4) high-capacity ceramic electric wire, and progress in incorporating existing and ties which are the subject of ongoing or ap- connectors, and insulators; new such rights-of-way into relevant land proved siting and related permitting pro- (5) optimized transmission line configura- use and resource management plans or their ceedings. tions (including multiple phased trans- equivalent. (c) OTHER FUNDS.— mission lines); (3) The number of existing transmission (1) IN GENERAL.—In carrying out a Project (6) modular equipment; and distribution rights-of-way on Federal under subsection (a) or (b), the Secretary (7) wireless power transmission;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00116 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.060 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2269 (8) ultra-high voltage lines; eties, and any other persons the Secretary (1) a qualifying advanced power system (9) high-voltage DC technology; considers appropriate. technology facility; or (10) flexible AC transmission systems; (c) IMPLEMENTATION.—The Secretary shall (2) a qualifying security and assured power (11) energy storage devices (including consider implementing this program using a facility. pumped hydro, compressed air, super- consortium of industry, university and na- (b) INCENTIVES.—Subject to availability of conducting magnetic energy storage, tional laboratory participants. funds, a payment of 1.8 cents per kilowatt- flywheels, and batteries); (d) REPORT.—Not later than 2 years after hour shall be paid to the owner or operator (12) controllable load; the transmittal of the plan under subsection of a qualifying advanced power system tech- (13) distributed generation (including PV, (b), the Secretary shall transmit a report to nology facility under this section for elec- fuel cells, microturbines); Congress describing the progress made under tricity generated at such facility. An addi- (14) enhanced power device monitoring; this section and identifying any additional tional 0.7 cents per kilowatt-hour shall be (15) direct system state sensors; resources needed to continue the develop- paid to the owner or operator of a qualifying ment and commercial application of trans- (16) fiber optic technologies; security and assured power facility for elec- mission and distribution infrastructure tech- (17) power electronics and related software tricity generated at such facility. Any facil- nologies. (including real time monitoring and analyt- ity qualifying under this section shall be eli- (e) POWER DELIVERY RESEARCH INITIA- ical software); and gible for an incentive payment for up to, but TIVE.— not more than, the first 10,000,000 kilowatt- (18) any other technologies the Commis- (1) IN GENERAL.—The Secretary shall estab- hours produced in any fiscal year. sion considers appropriate. lish a research, development, demonstration, (c) ELIGIBILITY.—For purposes of this sec- (c) OBSOLETE OR IMPRACTICABLE TECH- and commercial application initiative spe- tion: NOLOGIES .—The Commission is authorized to cifically focused on power delivery utilizing (1) QUALIFYING ADVANCED POWER SYSTEM cease encouraging the deployment of any components incorporating high temperature TECHNOLOGY FACILITY.—The term ‘‘qualifying technology described in this section on a superconductivity. advanced power system technology facility’’ finding that such technology has been ren- (2) GOALS.—The goals of this initiative means a facility using an advanced fuel cell, dered obsolete or otherwise impracticable to shall be to— turbine, or hybrid power system or power deploy. (A) establish facilities to develop high tem- storage system to generate or store electric SEC. 1225. ELECTRIC TRANSMISSION AND DIS- perature superconductivity power applica- energy. TRIBUTION PROGRAMS. tions in partnership with manufacturers and (2) QUALIFYING SECURITY AND ASSURED (a) ELECTRIC TRANSMISSION AND DISTRIBU- utilities; POWER FACILITY.—The term ‘‘qualifying secu- TION PROGRAM.—The Secretary of Energy (B) provide technical leadership for estab- rity and assured power facility’’ means a (hereinafter in this section referred to as the lishing reliability for high temperature qualifying advanced power system tech- ‘‘Secretary’’) acting through the Director of superconductivity power applications includ- nology facility determined by the Secretary the Office of Electric Transmission and Dis- ing suitable modeling and analysis; of Energy, in consultation with the Sec- tribution shall establish a comprehensive re- (C) facilitate commercial transition to- retary of Homeland Security, to be in crit- search, development, demonstration and ward direct current power transmission, ical need of secure, reliable, rapidly avail- commercial application program to promote storage, and use for high power systems uti- able, high-quality power for critical govern- improved reliability and efficiency of elec- lizing high temperature superconductivity; mental, industrial, or commercial applica- trical transmission and distribution systems. and tions. This program shall include— (D) facilitate the integration of very low (d) AUTHORIZATION.—There are authorized (1) advanced energy delivery and storage impedance high temperature super- to be appropriated to the Secretary of En- technologies, materials, and systems, includ- conducting wires and cables in existing elec- ergy for the purposes of this section, ing new transmission technologies, such as tric networks to improve system perform- $10,000,000 for each of the fiscal years 2006 flexible alternating current transmission ance, power flow control and reliability. through 2012. systems, composite conductor materials and (3) REQUIREMENTS.—The initiative shall in- SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION other technologies that enhance reliability, clude— AND DISTRIBUTION. operational flexibility, or power-carrying ca- (A) feasibility analysis, planning, research, (a) CREATION OF AN OFFICE OF ELECTRIC pability; and design to construct demonstrations of TRANSMISSION AND DISTRIBUTION.—Title II of (2) advanced grid reliability and efficiency superconducting links in high power, direct the Department of Energy Organization Act technology development; current and controllable alternating current (42 U.S.C. 7131 et seq.) (as amended by sec- (3) technologies contributing to significant transmission systems; tion 502(a) of this Act) is amended by insert- ing the following after section 217, as added load reductions; (B) public-private partnerships to dem- by title V of this Act: (4) advanced metering, load management, onstrate deployment of high temperature and control technologies; superconducting cable into testbeds simu- ‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION. (5) technologies to enhance existing grid lating a realistic transmission grid and components; under varying transmission conditions, in- ‘‘(a) ESTABLISHMENT.—There is established (6) the development and use of high-tem- cluding actual grid insertions; and within the Department an Office of Electric perature superconductors to— (C) testbeds developed in cooperation with Transmission and Distribution. This Office (A) enhance the reliability, operational national laboratories, industries, and univer- shall be headed by a Director, subject to the flexibility, or power-carrying capability of sities to demonstrate these technologies, authority of the Secretary. The Director shall be appointed by the Secretary. The Di- electric transmission or distribution sys- prepare the technologies for commercial in- rector shall be compensated at the annual tems; or troduction, and address cost or performance rate prescribed for level IV of the Executive (B) increase the efficiency of electric en- roadblocks to successful commercial use. Schedule under section 5315 of title 5, United ergy generation, transmission, distribution, (4) AUTHORIZATION OF APPROPRIATIONS.— For purposes of carrying out this subsection, States Code. or storage systems; there are authorized to be appropriated— ‘‘(b) DIRECTOR.—The Director shall— (7) integration of power systems, including (A) for fiscal year 2006, $15,000,000; ‘‘(1) coordinate and develop a comprehen- systems to deliver high-quality electric (B) for fiscal year 2007, $20,000,000; sive, multi-year strategy to improve the Na- power, electric power reliability, and com- (C) for fiscal year 2008, $30,000,000; tion’s electricity transmission and distribu- bined heat and power; (D) for fiscal year 2009, $35,000,000; and tion; (8) supply of electricity to the power grid (E) for fiscal year 2010, $40,000,000. ‘‘(2) implement or, where appropriate, co- by small scale, distributed and residential- ordinate the implementation of, the rec- based power generators; SEC. 1226. ADVANCED POWER SYSTEM TECH- NOLOGY INCENTIVE PROGRAM. ommendations made in the Secretary’s May (9) the development and use of advanced (a) PROGRAM.—The Secretary of Energy is 2002 National Transmission Grid Study; grid design, operation and planning tools; authorized to establish an Advanced Power ‘‘(3) oversee research, development, and (10) any other infrastructure technologies, System Technology Incentive Program to demonstration to support Federal energy as appropriate; and support the deployment of certain advanced policy related to electricity transmission (11) technology transfer and education. power system technologies and to improve and distribution; (b) PROGRAM PLAN.—Not later than 1 year and protect certain critical governmental, ‘‘(4) grant authorizations for electricity after the date of the enactment of this legis- industrial, and commercial processes. Funds import and export pursuant to section 202(c), lation, the Secretary, in consultation with provided under this section shall be used by (d), (e), and (f) of the Federal Power Act (16 other appropriate Federal agencies, shall the Secretary to make incentive payments U.S.C. 824a); prepare and transmit to Congress a 5-year to eligible owners or operators of advanced ‘‘(5) perform other functions, assigned by program plan to guide activities under this power system technologies to increase power the Secretary, related to electricity trans- section. In preparing the program plan, the generation through enhanced operational, mission and distribution; and Secretary may consult with utilities, energy economic, and environmental performance. ‘‘(6) develop programs for workforce train- services providers, manufacturers, institu- Payments under this section may only be ing in power and transmission engineering.’’. tions of higher education, other appropriate made upon receipt by the Secretary of an in- (b) CONFORMING AMENDMENTS.—(1) The State and local agencies, environmental or- centive payment application establishing an table of contents of the Department of En- ganizations, professional and technical soci- applicant as either— ergy Organization Act (42 U.S.C. 7101 note) is

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amended by inserting after the item relating Commission-approved independent trans- (1) APPROPRIATE FEDERAL REGULATORY AU- to section 217 the following new item: mission organization designated to provide THORITY.—The term ‘‘appropriate Federal ‘‘Sec. 218. Office of Electric Transmission nondiscriminatory transmission access. regulatory authority’’ means— and Distribution.’’. ‘‘(j) DEFINITION.—For purposes of this sec- (A) with respect to a Federal power mar- tion, the term ‘unregulated transmitting keting agency (as defined in the Federal (2) Section 5315 of title 5, United States utility’ means an entity that— Power Act), the Secretary of Energy, except Code, is amended by inserting after the item ‘‘(1) owns or operates facilities used for the that the Secretary may designate the Ad- relating to ‘‘Inspector General, Department transmission of electric energy in interstate ministrator of a Federal power marketing of Energy.’’ the following: commerce; and agency to act as the appropriate Federal reg- ‘‘Director, Office of Electric Transmission ‘‘(2) is an entity described in section ulatory authority with respect to the trans- and Distribution, Department of Energy.’’. 201(f).’’. mission system of that Federal power mar- Subtitle C—Transmission Operation SEC. 1232. SENSE OF CONGRESS ON REGIONAL keting agency; and Improvements TRANSMISSION ORGANIZATIONS. (B) with respect to the Tennessee Valley SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. It is the sense of Congress that, in order to Authority, the Board of Directors of the Ten- Part II of the Federal Power Act (16 U.S.C. promote fair, open access to electric trans- nessee Valley Authority. 824 et seq.) is amended by inserting after sec- mission service, benefit retail consumers, fa- (2) FEDERAL UTILITY.—The term ‘‘Federal tion 211 the following new section: cilitate wholesale competition, improve effi- utility’’ means a Federal power marketing ciencies in transmission grid management, agency or the Tennessee Valley Authority. ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED promote grid reliability, remove opportuni- TRANSMITTING UTILITIES. (3) TRANSMISSION SYSTEM.—The term ties for unduly discriminatory or pref- ‘‘(a) TRANSMISSION SERVICES.—Subject to ‘‘transmission system’’ means electric trans- erential transmission practices, and provide mission facilities owned, leased, or con- section 212(h), the Commission may, by rule for the efficient development of transmission or order, require an unregulated transmit- tracted for by the United States and oper- infrastructure needed to meet the growing ated by a Federal utility. ting utility to provide transmission serv- demands of competitive wholesale power ices— markets, all transmitting utilities in inter- (b) TRANSFER.—The appropriate Federal ‘‘(1) at rates that are comparable to those state commerce should voluntarily become regulatory authority is authorized to enter that the unregulated transmitting utility members of Regional Transmission Organi- into a contract, agreement or other arrange- charges itself; and zations as defined in section 3 of the Federal ment transferring control and use of all or ‘‘(2) on terms and conditions (not relating Power Act. part of the Federal utility’s transmission to rates) that are comparable to those under SEC. 1233. REGIONAL TRANSMISSION ORGANIZA- which such unregulated transmitting utility system to an RTO or ISO (as defined in the TION APPLICATIONS PROGRESS RE- Federal Power Act), approved by the Federal provides transmission services to itself and PORT. that are not unduly discriminatory or pref- Not later than 120 days after the date of Energy Regulatory Commission. Such con- erential. enactment of this section, the Federal En- tract, agreement or arrangement shall in- ‘‘(b) EXEMPTION.—The Commission shall ergy Regulatory Commission shall submit to clude— exempt from any rule or order under this Congress a report containing each of the fol- (1) performance standards for operation section any unregulated transmitting utility lowing: and use of the transmission system that the that— (1) A list of all regional transmission orga- head of the Federal utility determines nec- ‘‘(1) sells no more than 4,000,000 megawatt nization applications filed at the Commis- essary or appropriate, including standards hours of electricity per year; or sion pursuant to subpart F of part 35 of title that assure recovery of all the Federal util- ‘‘(2) does not own or operate any trans- 18, Code of Federal Regulations (in this sec- ity’s costs and expenses related to the trans- mission facilities that are necessary for op- tion referred to as ‘‘Order No. 2000’’), includ- mission facilities that are the subject of the erating an interconnected transmission sys- ing an identification of each public utility contract, agreement or other arrangement; tem (or any portion thereof); or and other entity included within the pro- consistency with existing contracts and ‘‘(3) meets other criteria the Commission posed membership of the regional trans- third-party financing arrangements; and determines to be in the public interest. mission organization. consistency with said Federal utility’s statu- ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The (2) A brief description of the status of each tory authorities, obligations, and limita- requirements of subsection (a) shall not pending regional transmission organization tions; apply to facilities used in local distribution. application, including a precise explanation (2) provisions for monitoring and oversight ‘‘(d) EXEMPTION TERMINATION.—Whenever of how each fails to comply with the mini- by the Federal utility of the RTO’s or ISO’s the Commission, after an evidentiary hear- mal requirements of Order No. 2000 and what fulfillment of the terms and conditions of ing held upon a complaint and after giving steps need to be taken to bring each applica- the contract, agreement or other arrange- consideration to reliability standards estab- tion into such compliance. ment, including a provision for the resolu- lished under section 215, finds on the basis of (3) For any application that has not been tion of disputes through arbitration or other a preponderance of the evidence that any ex- finally approved by the Commission, a de- means with the regional transmission orga- emption granted pursuant to subsection (b) tailed description of every aspect of the ap- nization or with other participants, notwith- unreasonably impairs the continued reli- plication that the Commission has deter- standing the obligations and limitations of ability of an interconnected transmission mined does not conform to the requirements any other law regarding arbitration; and system, it shall revoke the exemption grant- of Order No. 2000. (3) a provision that allows the Federal util- ed to that transmitting utility. (4) For any application that has not been ity to withdraw from the RTO or ISO and ‘‘(e) APPLICATION TO UNREGULATED TRANS- finally approved by the Commission, an ex- terminate the contract, agreement or other MITTING UTILITIES.—The rate changing proce- planation by the Commission of why the arrangement in accordance with its terms. dures applicable to public utilities under items described pursuant to paragraph (3) Neither this section, actions taken pursuant subsections (c) and (d) of section 205 are ap- constitute material noncompliance with the plicable to unregulated transmitting utili- requirements of the Commission’s Order No. to it, nor any other transaction of a Federal ties for purposes of this section. 2000 sufficient to justify denial of approval utility using an RTO or ISO shall confer ‘‘(f) REMAND.—In exercising its authority by the Commission. upon the Federal Energy Regulatory Com- under paragraph (1) of subsection (a), the (5) For all regional transmission organiza- mission jurisdiction or authority over the Commission may remand transmission rates tion applications filed pursuant to the Com- Federal utility’s electric generation assets, to an unregulated transmitting utility for mission’s Order No. 2000, whether finally ap- electric capacity or energy that the Federal review and revision where necessary to meet proved or not— utility is authorized by law to market, or the requirements of subsection (a). (A) a discussion of that regional trans- the Federal utility’s power sales activities. ‘‘(g) OTHER REQUESTS.—The provision of mission organization’s efforts to minimize transmission services under subsection (a) rate seams between itself and— (c) EXISTING STATUTORY AND OTHER OBLI- does not preclude a request for transmission (i) other regional transmission organiza- GATIONS.— services under section 211. tions; and (1) SYSTEM OPERATION REQUIREMENTS.—No ‘‘(h) LIMITATION.—The Commission may (ii) entities not participating in a regional statutory provision requiring or authorizing not require a State or municipality to take transmission organization; a Federal utility to transmit electric power action under this section that would violate (B) a discussion of the impact of such or to construct, operate or maintain its a private activity bond rule for purposes of seams on consumers and wholesale competi- transmission system shall be construed to section 141 of the Internal Revenue Code of tion; and prohibit a transfer of control and use of its 1986 (26 U.S.C. 141). (C) a discussion of minimizing cost-shifting transmission system pursuant to, and sub- ‘‘(i) TRANSFER OF CONTROL OF TRANSMIT- on consumers. ject to all requirements of subsection (b). TING FACILITIES.—Nothing in this section au- SEC. 1234. FEDERAL UTILITY PARTICIPATION IN (2) OTHER OBLIGATIONS.—This subsection thorizes the Commission to require an un- REGIONAL TRANSMISSION ORGANI- shall not be construed to— regulated transmitting utility to transfer ZATIONS. (A) suspend, or exempt any Federal utility control or operational control of its trans- (a) DEFINITIONS.—For purposes of this sec- from, any provision of existing Federal law, mitting facilities to an RTO or any other tion— including but not limited to any requirement

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00118 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.060 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2271 or direction relating to the use of the Fed- tion. Subsequent transfers to another load- sion shall by rule or order implement sub- eral utility’s transmission system, environ- serving entity, or back to the original load- section (a)(3) in Commission-approved RTOs mental protection, fish and wildlife protec- serving entity, shall be entitled to the same and ISOs with organized electricity markets. tion, flood control, navigation, water deliv- rights. ‘‘(h) ERCOT.—This section shall not apply ery, or recreation; or ‘‘(3) The Commission shall exercise its au- within the area referred to in section (B) authorize abrogation of any contract or thority under this Act in a manner that fa- 212(k)(2)(A). treaty obligation. cilitates the planning and expansion of ‘‘(i) JURISDICTION.—This section does not (3) REPEAL.—Section 311 of title III of Ap- transmission facilities to meet the reason- authorize the Commission to take any action pendix B of the Act of October 27, 2000 (P.L. able needs of load-serving entities to satisfy not otherwise within its jurisdiction. ‘‘(j) EFFECT OF EXERCISING RIGHTS.—An en- 106–377, section 1(a)(2); 114 Stat. 1441, 1441A– their service obligations, and enables load- tity that lawfully exercises rights granted 80; 16 U.S.C. 824n) is repealed. serving entities to secure firm transmission rights (or equivalent tradable or financial under subsection (a) shall not be considered SEC. 1235. STANDARD MARKET DESIGN. by such action as engaging in undue dis- (a) REMAND.—The Commission’s proposed rights) on a long term basis for long term power supply arrangements made, or crimination or preference under this Act. rulemaking entitled ‘‘Remedying Undue Dis- ‘‘(k) TVA AREA.—For purposes of sub- planned, to meet such needs. crimination through Open Access Trans- section (a)(1)(B), a load-serving entity that is ‘‘(b) ALLOCATION OF TRANSMISSION mission Service and Standard Electricity located within the service area of the Ten- RIGHTS.—Nothing in subsections (a)(1) and Market Design’’ (Docket No. RM01–12–000) nessee Valley Authority and that has a firm (a) (2) of this section shall affect any exist- (‘‘SMD NOPR’’) is remanded to the Commis- wholesale power supply contract with the ing or future methodology employed by an sion for reconsideration. No final rule man- Tennessee Valley Authority shall be deemed RTO or ISO for allocating or auctioning dating a standard electricity market design to hold firm transmission rights for the pursuant to the proposed rulemaking, in- transmission rights if such RTO or ISO was transmission of such power. cluding any rule or order of general applica- authorized by the Commission to allocate or ‘‘(l) DEFINITIONS.—For purposes of this sec- bility within the scope of the proposed rule- auction financial transmission rights on its tion: making, may be issued before October 31, system as of January 1, 2005, and the Com- ‘‘(1) The term ‘distribution utility’ means 2006, or take effect before December 31, 2006. mission determines that any future alloca- an electric utility that has a service obliga- Any final rule issued by the Commission pur- tion or auction is just, reasonable and not tion to end-users or to a State utility or suant to the proposed rulemaking shall be unduly discriminatory or preferential, pro- electric cooperative that, directly or indi- preceded by a second notice of proposed rule- vided, however, that if such an RTO or ISO rectly, through 1 or more additional State making issued after the date of enactment of never allocated financial transmission rights utilities or electric cooperatives, provides this Act and an opportunity for public com- on its system that pertained to a period be- electric service to end-users. ment. fore January 1, 2005, with respect to any ap- ‘‘(2) The term ‘load-serving entity’ means a (b) SAVINGS CLAUSE.—This section shall plication by such RTO or ISO that would distribution utility or an electric utility not be construed to modify or diminish any change its methodology the Commission that has a service obligation. authority or obligation the Commission has shall exercise its authority in a manner con- ‘‘(3) The term ‘service obligation’ means a under this Act, the Federal Power Act, or sistent with the Act and the policies ex- requirement applicable to, or the exercise of other applicable law, including, but not lim- pressed in subsections (a)(1) and (a)(2) as ap- authority granted to, an electric utility ited to, any authority to— plied to firm transmission rights held by a under Federal, State or local law or under (1) issue any rule or order (of general or load serving entity as of January 1, 2005, to long-term contracts to provide electric serv- particular applicability) pursuant to any the extent the associated generation owner- ice to end-users or to a distribution utility. such authority or obligation; or ship or power purchase arrangements remain ‘‘(4) The term ‘State utility’ means a State (2) act on a filing or filings by 1 or more in effect. or any political subdivision of a State, or transmitting utilities for the voluntary for- ‘‘(c) CERTAIN TRANSMISSION RIGHTS.—The any agency, authority, or instrumentality of mation of a Regional Transmission Organiza- Commission may exercise authority under any 1 or more of the foregoing, or a corpora- tion or Independent System Operator (as de- this Act to make transmission rights not tion which is wholly owned, directly or indi- fined in the Federal Power Act) (and related used to meet an obligation covered by sub- rectly, by any 1 or more of the foregoing, market structures or rules) or voluntary section (a) available to other entities in a competent to carry on the business of devel- modification of an existing Regional Trans- manner determined by the Commission to be oping, transmitting, utilizing or distributing mission Organization or Independent System just, reasonable, and not unduly discrimina- power’’. Operator (and related market structures or tory or preferential. SEC. 1237. STUDY ON THE BENEFITS OF ECO- ‘‘(d) OBLIGATION TO BUILD.—Nothing in this rules). NOMIC DISPATCH. Act shall relieve a load-serving entity from (a) STUDY.—The Secretary of Energy, in SEC. 1236. NATIVE LOAD SERVICE OBLIGATION. any obligation under State or local law to coordination and consultation with the Part II of the Federal Power Act (16 U.S.C. build transmission or distribution facilities States, shall conduct a study on— 824 et seq.) is amended by adding at the end adequate to meet its service obligations. (1) the procedures currently used by elec- the following: ‘‘(e) CONTRACTS.—Nothing in this section tric utilities to perform economic dispatch; ‘‘SEC. 217. NATIVE LOAD SERVICE OBLIGATION. shall provide a basis for abrogating any con- (2) identifying possible revisions to those ‘‘(a) MEETING SERVICE OBLIGATIONS.—(1) tract or service agreement for firm trans- procedures to improve the ability of non- Any load-serving entity that, as of the date mission service or rights in effect as of the utility generation resources to offer their of enactment of this section— date of the enactment of this subsection. If output for sale for the purpose of inclusion ‘‘(A) owns generation facilities, markets an ISO in the Western Interconnection had in economic dispatch; and the output of Federal generation facilities, allocated financial transmission rights prior (3) the potential benefits to residential, or holds rights under 1 or more wholesale to the date of enactment of this section but commercial, and industrial electricity con- contracts to purchase electric energy, for the had not done so with respect to one or more sumers nationally and in each state if eco- purpose of meeting a service obligation, and load-serving entities’ firm transmission nomic dispatch procedures were revised to ‘‘(B) by reason of ownership of trans- rights held under contracts to which the pre- improve the ability of nonutility generation mission facilities, or 1 or more contracts or ceding sentence applies (or held by reason of resources to offer their output for inclusion service agreements for firm transmission ownership of transmission facilities), such in economic dispatch. service, holds firm transmission rights for load-serving entities may not be required, (b) DEFINITION.—The term ‘‘economic dis- delivery of the output of such generation fa- without their consent, to convert such firm patch’’ when used in this section means the cilities or such purchased energy to meet transmission rights to tradable or financial operation of generation facilities to produce such service obligation, rights, except where the load-serving entity energy at the lowest cost to reliably serve is entitled to use such firm transmission has voluntarily joined the ISO as a partici- consumers, recognizing any operational lim- rights, or, equivalent tradable or financial pating transmission owner (or its successor) its of generation and transmission facilities. transmission rights, in order to deliver such in accordance with the ISO tariff. (c) REPORT TO CONGRESS AND THE STATES.— output or purchased energy, or the output of ‘‘(f) WATER PUMPING FACILITIES.—The Com- Not later than 90 days after the date of en- other generating facilities or purchased en- mission shall ensure that any entity de- actment of this Act, and on a yearly basis ergy to the extent deliverable using such scribed in section 201(f) that owns trans- following, the Secretary of Energy shall sub- rights, to the extent required to meet its mission facilities used predominately to sup- mit a report to Congress and the States on service obligation. port its own water pumping facilities shall the results of the study conducted under sub- ‘‘(2) To the extent that all or a portion of have, with respect to such facilities, protec- section (a), including recommendations to the service obligation covered by such firm tions for transmission service comparable to Congress and the States for any suggested transmission rights or equivalent tradable or those provided to load-serving entities pur- legislative or regulatory changes. financial transmission rights is transferred suant to this section. Subtitle D—Transmission Rate Reform to another load-serving entity, the successor ‘‘(g) FERC RULEMAKING ON LONG-TERM SEC. 1241. TRANSMISSION INFRASTRUCTURE IN- load-serving entity shall be entitled to use TRANSMISSION RIGHTS IN ORGANIZED MAR- VESTMENT. the firm transmission rights or equivalent KETS.—Within one year after the date of en- Part II of the Federal Power Act (16 U.S.C. tradable or financial transmission rights as- actment of this section and after notice and 824 et seq.) is amended by adding at the end sociated with the transferred service obliga- an opportunity for comment, the Commis- the following:

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00119 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.060 H20PT1 H2272 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘SEC. 218. TRANSMISSION INFRASTRUCTURE IN- and not unduly discriminatory or pref- ‘‘(3) the State legislature has voted on the VESTMENT. erential.’’. implementation of such standard (or a com- ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 Subtitle E—Amendments to PURPA parable standard) for such utility.’’. year after the enactment of this section, the (B) CROSS REFERENCE.—Section 124 of such Commission shall establish, by rule, incen- SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. Act (16 U.S.C. 2634) is amended by adding the tive-based (including, but not limited to per- (a) ADOPTION OF STANDARDS.—Section following at the end thereof: ‘‘In the case of formance-based) rate treatments for the 111(d) of the Public Utility Regulatory Poli- each standard established by paragraphs (11) transmission of electric energy in interstate cies Act of 1978 (16 U.S.C. 2621(d)) is amended through (13) of section 111(d), the reference commerce by public utilities for the purpose by adding at the end the following: contained in this subsection to the date of of benefiting consumers by ensuring reli- ‘‘(11) NET METERING.—Each electric utility enactment of this Act shall be deemed to be ability and reducing the cost of delivered shall make available upon request net me- a reference to the date of enactment of such power by reducing transmission congestion. tering service to any electric consumer that paragraphs (11) through (13).’’. Such rule shall— the electric utility serves. For purposes of SEC. 1252. SMART METERING. ‘‘(1) promote reliable and economically ef- this paragraph, the term ‘net metering serv- (a) IN GENERAL.—Section 111(d) of the Pub- ficient transmission and generation of elec- ice’ means service to an electric consumer lic Utilities Regulatory Policies Act of 1978 tricity by promoting capital investment in under which electric energy generated by (16 U.S.C. 2621(d)) is amended by adding at the enlargement, improvement, maintenance that electric consumer from an eligible on- the end the following: and operation of facilities for the trans- site generating facility and delivered to the ‘‘(14) TIME-BASED METERING AND COMMU- mission of electric energy in interstate com- local distribution facilities may be used to NICATIONS.— merce; offset electric energy provided by the elec- ‘‘(A) Not later than 18 months after the ‘‘(2) provide a return on equity that at- tric utility to the electric consumer during date of enactment of this paragraph, each tracts new investment in transmission facili- the applicable billing period. electric utility shall offer each of its cus- ties (including related transmission tech- ‘‘(12) FUEL SOURCES.—Each electric utility tomer classes, and provide individual cus- nologies); shall develop a plan to minimize dependence tomers upon customer request, a time-based ‘‘(3) encourage deployment of transmission on 1 fuel source and to ensure that the elec- rate schedule under which the rate charged technologies and other measures to increase tric energy it sells to consumers is generated by the electric utility varies during different the capacity and efficiency of existing trans- using a diverse range of fuels and tech- time periods and reflects the variance, if mission facilities and improve the operation nologies, including renewable technologies. any, in the utility’s costs of generating and of such facilities; and purchasing electricity at the wholesale level. ‘‘(13) FOSSIL FUEL GENERATION EFFI- ‘‘(4) allow recovery of all prudently in- The time-based rate schedule shall enable CIENCY.—Each electric utility shall develop curred costs necessary to comply with man- and implement a 10-year plan to increase the the electric consumer to manage energy use datory reliability standards issued pursuant and cost through advanced metering and efficiency of its fossil fuel generation.’’. to section 215 of this Act. (b) COMPLIANCE.— communications technology. The Commission may, from time to time, re- ‘‘(B) The types of time-based rate sched- (1) TIME LIMITATIONS.—Section 112(b) of the vise such rule. Public Utility Regulatory Policies Act of ules that may be offered under the schedule ‘‘(b) ADDITIONAL INCENTIVES FOR RTO PAR- 1978 (16 U.S.C. 2622(b)) is amended by adding referred to in subparagraph (A) include, TICIPATION.—In the rule issued under this among others— section, the Commission shall, to the extent at the end the following: ‘‘(3)(A) Not later than 2 years after the en- ‘‘(i) time-of-use pricing whereby electricity within its jurisdiction, provide for incentives actment of this paragraph, each State regu- prices are set for a specific time period on an to each transmitting utility or electric util- latory authority (with respect to each elec- advance or forward basis, typically not ity that joins a Regional Transmission Orga- tric utility for which it has ratemaking au- changing more often than twice a year, nization or Independent System Operator. thority) and each nonregulated electric util- based on the utility’s cost of generating and/ Incentives provided by the Commission pur- ity shall commence the consideration re- or purchasing such electricity at the whole- suant to such rule shall include— ferred to in section 111, or set a hearing date sale level for the benefit of the consumer. ‘‘(1) recovery of all prudently incurred for such consideration, with respect to each Prices paid for energy consumed during costs to develop and participate in any pro- standard established by paragraphs (11) these periods shall be pre-established and posed or approved RTO, ISO, or independent through (13) of section 111(d). known to consumers in advance of such con- transmission company; ‘‘(B) Not later than 3 years after the date sumption, allowing them to vary their de- ‘‘(2) recovery of all costs previously ap- of the enactment of this paragraph, each mand and usage in response to such prices proved by a State commission which exer- State regulatory authority (with respect to and manage their energy costs by shifting cised jurisdiction over the transmission fa- each electric utility for which it has rate- usage to a lower cost period or reducing cilities prior to the utility’s participation in making authority), and each nonregulated their consumption overall; the RTO or ISO, including costs necessary to electric utility, shall complete the consider- ‘‘(ii) critical peak pricing whereby time-of- honor preexisting transmission service con- ation, and shall make the determination, re- use prices are in effect except for certain tracts, in a manner which does not reduce ferred to in section 111 with respect to each peak days, when prices may reflect the costs the revenues the utility receives for trans- standard established by paragraphs (11) of generating and/or purchasing electricity mission services for a reasonable transition through (13) of section 111(d).’’. at the wholesale level and when consumers period after the utility joins the RTO or ISO; (2) FAILURE TO COMPLY.—Section 112(c) of may receive additional discounts for reduc- ‘‘(3) recovery as an expense in rates of the the Public Utility Regulatory Policies Act of ing peak period energy consumption; costs prudently incurred to conduct trans- 1978 (16 U.S.C. 2622(c)) is amended by adding ‘‘(iii) real-time pricing whereby electricity mission planning and reliability activities, at the end the following: prices are set for a specific time period on an including the costs of participating in RTO, ‘‘In the case of each standard established by advanced or forward basis, reflecting the ISO and other regional planning activities paragraphs (11) through (13) of section 111(d), utility’s cost of generating and/or purchasing and design, study and other precertification the reference contained in this subsection to electricity at the wholesale level, and may costs involved in seeking permits and ap- the date of enactment of this Act shall be change as often as hourly; and provals for proposed transmission facilities; deemed to be a reference to the date of en- ‘‘(iv) credits for consumers with large loads ‘‘(4) a current return in rates for construc- actment of such paragraphs (11) through who enter into pre-established peak load re- tion work in progress for transmission facili- (13).’’. duction agreements that reduce a utility’s ties and full recovery of prudently incurred (3) PRIOR STATE ACTIONS.— planned capacity obligations. costs for constructing transmission facili- (A) IN GENERAL.—Section 112 of the Public ‘‘(C) Each electric utility subject to sub- ties; Utility Regulatory Policies Act of 1978 (16 paragraph (A) shall provide each customer ‘‘(5) formula transmission rates; and U.S.C. 2622) is amended by adding at the end requesting a time-based rate with a time- ‘‘(6) a maximum 15 year accelerated depre- the following: based meter capable of enabling the utility ciation on new transmission facilities for ‘‘(d) PRIOR STATE ACTIONS.—Subsections and customer to offer and receive such rate, rate treatment purposes. (b) and (c) of this section shall not apply to respectively. The Commission shall ensure that any costs the standards established by paragraphs (11) ‘‘(D) For purposes of implementing this recoverable pursuant to this subsection may through (13) of section 111(d) in the case of paragraph, any reference contained in this be recovered by such utility through the any electric utility in a State if, before the section to the date of enactment of the Pub- transmission rates charged by such utility or enactment of this subsection— lic Utility Regulatory Policies Act of 1978 through the transmission rates charged by ‘‘(1) the State has implemented for such shall be deemed to be a reference to the date the RTO or ISO that provides transmission utility the standard concerned (or a com- of enactment of this paragraph. service to such utility. parable standard); ‘‘(E) In a State that permits third-party ‘‘(c) JUST AND REASONABLE RATES.—All ‘‘(2) the State regulatory authority for marketers to sell electric energy to retail rates approved under the rules adopted pur- such State or relevant nonregulated electric electric consumers, such consumers shall be suant to this section, including any revisions utility has conducted a proceeding to con- entitled to receive the same time-based me- to such rules, are subject to the requirement sider implementation of the standard con- tering and communications device and serv- of sections 205 and 206 that all rates, charges, cerned (or a comparable standard) for such ice as a retail electric consumer of the elec- terms, and conditions be just and reasonable utility; or tric utility.

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‘‘(F) Notwithstanding subsections (b) and (C) developing plans and programs to use (i) PRIOR STATE ACTIONS REGARDING SMART (c) of section 112, each State regulatory au- demand response to respond to peak demand METERING STANDARDS.— thority shall, not later than 18 months after or emergency needs; and (1) IN GENERAL.—Section 112 of the Public the date of enactment of this paragraph con- (D) identifying specific measures con- Utility Regulatory Policies Act of 1978 (16 duct an investigation in accordance with sec- sumers can take to participate in these de- U.S.C. 2622) is amended by adding at the end tion 115(i) and issue a decision whether it is mand response programs. the following: appropriate to implement the standards set (3) REPORT.—Not later than 1 year after ‘‘(e) PRIOR STATE ACTIONS.—Subsections out in subparagraphs (A) and (C).’’. the date of enactment of the Energy Policy (b) and (c) of this section shall not apply to (b) STATE INVESTIGATION OF DEMAND RE- Act of 2005, the Commission shall prepare the standard established by paragraph (14) of SPONSE AND TIME-BASED METERING.—Section and publish an annual report, by appropriate section 111(d) in the case of any electric util- 115 of the Public Utilities Regulatory Poli- region, that assesses demand response re- ity in a State if, before the enactment of this cies Act of 1978 (16 U.S.C. 2625) is amended as sources, including those available from all subsection— follows: consumer classes, and which identifies and ‘‘(1) the State has implemented for such (1) By inserting in subsection (b) after the reviews— utility the standard concerned (or a com- phrase ‘‘the standard for time-of-day rates (A) saturation and penetration rate of ad- parable standard); established by section 111(d)(3)’’ the fol- vanced meters and communications tech- ‘‘(2) the State regulatory authority for lowing: ‘‘and the standard for time-based me- nologies, devices and systems; such State or relevant nonregulated electric tering and communications established by (B) existing demand response programs and utility has conducted a proceeding to con- section 111(d)(14)’’. time-based rate programs; sider implementation of the standard con- (2) By inserting in subsection (b) after the (C) the annual resource contribution of de- cerned (or a comparable standard) for such phrase ‘‘are likely to exceed the metering’’ mand resources; utility within the previous 3 years; or the following: ‘‘and communications’’. (D) the potential for demand response as a ‘‘(3) the State legislature has voted on the (3) By adding the at the end the following: quantifiable, reliable resource for regional implementation of such standard (or a com- ‘‘(i) TIME-BASED METERING AND COMMUNICA- planning purposes; parable standard) for such utility within the TIONS.—In making a determination with re- (E) steps taken to ensure that, in regional previous 3 years.’’. transmission planning and operations, de- spect to the standard established by section (2) CROSS REFERENCE.—Section 124 of such 111(d)(14), the investigation requirement of mand resources are provided equitable treat- Act (16 U.S.C. 2634) is amended by adding the section 111(d)(14)(F) shall be as follows: Each ment as a quantifiable, reliable resource rel- following at the end thereof: ‘‘In the case of State regulatory authority shall conduct an ative to the resource obligations of any load- the standard established by paragraph (14) of investigation and issue a decision whether or serving entity, transmission provider, or section 111(d), the reference contained in this not it is appropriate for electric utilities to transmitting party; and subsection to the date of enactment of this (F) regulatory barriers to improved cus- provide and install time-based meters and Act shall be deemed to be a reference to the tomer participation in demand response, communications devices for each of their date of enactment of such paragraph (14).’’. customers which enable such customers to peak reduction and critical period pricing participate in time-based pricing rate sched- programs. SEC. 1253. COGENERATION AND SMALL POWER (f) FEDERAL ENCOURAGEMENT OF DEMAND PRODUCTION PURCHASE AND SALE ules and other demand response programs.’’. REQUIREMENTS. (c) FEDERAL ASSISTANCE ON DEMAND RE- RESPONSE DEVICES.—It is the policy of the ERMINATION OF ANDATORY URCHASE SPONSE.—Section 132(a) of the Public Utility United States that time-based pricing and (a) T M P Regulatory Policies Act of 1978 (16 U.S.C. other forms of demand response, whereby AND SALE REQUIREMENTS.—Section 210 of the 2642(a)) is amended by striking ‘‘and’’ at the electricity customers are provided with elec- Public Utility Regulatory Policies Act of end of paragraph (3), striking the period at tricity price signals and the ability to ben- 1978 (16 U.S.C. 824a–3) is amended by adding the end of paragraph (4) and inserting ‘‘; efit by responding to them, shall be encour- at the end the following: and’’, and by adding the following at the end aged, the deployment of such technology and ‘‘(m) TERMINATION OF MANDATORY PUR- thereof: devices that enable electricity customers to CHASE AND SALE REQUIREMENTS.— ‘‘(5) technologies, techniques, and rate- participate in such pricing and demand re- ‘‘(1) OBLIGATION TO PURCHASE.—After the making methods related to advanced meter- sponse systems shall be facilitated, and un- date of enactment of this subsection, no elec- ing and communications and the use of these necessary barriers to demand response par- tric utility shall be required to enter into a technologies, techniques and methods in de- ticipation in energy, capacity and ancillary new contract or obligation to purchase elec- mand response programs.’’. service markets shall be eliminated. It is tric energy from a qualifying cogeneration (d) FEDERAL GUIDANCE.—Section 132 of the further the policy of the United States that facility or a qualifying small power produc- Public Utility Regulatory Policies Act of the benefits of such demand response that tion facility under this section if the Com- 1978 (16 U.S.C. 2642) is amended by adding the accrue to those not deploying such tech- mission finds that the qualifying cogenera- following at the end thereof: nology and devices, but who are part of the tion facility or qualifying small power pro- ‘‘(d) DEMAND RESPONSE.—The Secretary same regional electricity entity, shall be duction facility has nondiscriminatory ac- shall be responsible for— recognized. cess to— (g) TIME LIMITATIONS.—Section 112(b) of ‘‘(1) educating consumers on the avail- ‘‘(A)(i) independently administered, auc- the Public Utility Regulatory Policies Act of ability, advantages, and benefits of advanced tion-based day ahead and real time wholesale 1978 (16 U.S.C. 2622(b)) is amended by adding metering and communications technologies, markets for the sale of electric energy; and at the end the following: including the funding of demonstration or (ii) wholesale markets for long-term sales of ‘‘(4)(A) Not later than 1 year after the en- pilot projects; capacity and electric energy; or actment of this paragraph, each State regu- ‘‘(B)(i) transmission and interconnection ‘‘(2) working with States, utilities, other latory authority (with respect to each elec- services that are provided by a Commission- energy providers and advanced metering and tric utility for which it has ratemaking au- approved regional transmission entity and communications experts to identify and ad- thority) and each nonregulated electric util- administered pursuant to an open access dress barriers to the adoption of demand re- ity shall commence the consideration re- transmission tariff that affords nondiscrim- sponse programs; and ferred to in section 111, or set a hearing date inatory treatment to all customers; and (ii) ‘‘(3) not later than 180 days after the date for such consideration, with respect to the competitive wholesale markets that provide of enactment of the Energy Policy Act of standard established by paragraph (14) of sec- a meaningful opportunity to sell capacity, 2005, providing Congress with a report that tion 111(d). identifies and quantifies the national bene- ‘‘(B) Not later than 2 years after the date including long-term and short-term sales, fits of demand response and makes a rec- of the enactment of this paragraph, each and electric energy, including long-term, ommendation on achieving specific levels of State regulatory authority (with respect to short-term and real-time sales, to buyers such benefits by January 1, 2007.’’. each electric utility for which it has rate- other than the utility to which the quali- (e) DEMAND RESPONSE AND REGIONAL CO- making authority), and each nonregulated fying facility is interconnected. In deter- ORDINATION.— electric utility, shall complete the consider- mining whether a meaningful opportunity to (1) IN GENERAL.—It is the policy of the ation, and shall make the determination, re- sell exists, the Commission shall consider, United States to encourage States to coordi- ferred to in section 111 with respect to the among other factors, evidence of trans- nate, on a regional basis, State energy poli- standard established by paragraph (14) of sec- actions within the relevant market; or cies to provide reliable and affordable de- tion 111(d).’’. ‘‘(C) wholesale markets for the sale of ca- mand response services to the public. (h) FAILURE TO COMPLY.—Section 112(c) of pacity and electric energy that are, at a min- (2) TECHNICAL ASSISTANCE.—The Secretary the Public Utility Regulatory Policies Act of imum, of comparable competitive quality as of Energy shall provide technical assistance 1978 (16 U.S.C. 2622(c)) is amended by adding markets described in subparagraphs (A) and to States and regional organizations formed at the end the following: (B). by 2 or more States to assist them in— ‘‘In the case of the standard established by ‘‘(2) REVISED PURCHASE AND SALE OBLIGA- (A) identifying the areas with the greatest paragraph (14) of section 111(d), the reference TION FOR NEW FACILITIES.—(A) After the date demand response potential; contained in this subsection to the date of of enactment of this subsection, no electric (B) identifying and resolving problems in enactment of this Act shall be deemed to be utility shall be required pursuant to this sec- transmission and distribution networks, in- a reference to the date of enactment of such tion to enter into a new contract or obliga- cluding through the use of demand response; paragraph (14).’’. tion to purchase from or sell electric energy

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00121 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.061 H20PT1 H2274 CONGRESSIONAL RECORD — HOUSE April 20, 2005 to a facility that is not an existing quali- capacity to a qualifying cogeneration facil- mission determines, by rule, meets such re- fying cogeneration facility unless the facil- ity or qualifying small power production fa- quirements (including requirements respect- ity meets the criteria for qualifying cogen- cility under this Act (including the right to ing minimum size, fuel use, and fuel effi- eration facilities established by the Commis- recover costs of purchasing electric energy ciency) as the Commission may, by rule, pre- sion pursuant to the rulemaking required by or capacity). scribe;’’. subsection (n). ‘‘(7) RECOVERY OF COSTS.—(A) The Commis- SEC. 1254. INTERCONNECTION. ‘‘(B) For the purposes of this paragraph, sion shall issue and enforce such regulations (a) ADOPTION OF STANDARDS.—Section the term ‘existing qualifying cogeneration as are necessary to ensure that an electric 111(d) of the Public Utility Regulatory Poli- facility’ means a facility that— utility that purchases electric energy or ca- cies Act of 1978 (16 U.S.C. 2621 (d) ) is amend- ‘‘(i) was a qualifying cogeneration facility pacity from a qualifying cogeneration facil- ed by adding at the end the following: on the date of enactment of subsection (m); ity or qualifying small power production fa- ‘‘(16) INTERCONNECTION.—Each electric util- or cility in accordance with any legally en- ity shall make available, upon request, inter- ‘‘(ii) had filed with the Commission a no- forceable obligation entered into or imposed connection service to any electric consumer tice of self-certification, self recertification under this section recovers all prudently in- that the electric utility serves. For purposes or an application for Commission certifi- curred costs associated with the purchase. of this paragraph, the term ‘interconnection cation under 18 C.F.R. 292.207 prior to the ‘‘(B) A regulation under subparagraph (A) service’ means service to an electric con- date on which the Commission issues the shall be enforceable in accordance with the sumer under which an on-site generating fa- final rule required by subsection (n). provisions of law applicable to enforcement cility on the consumer’s premises shall be ‘‘(3) COMMISSION REVIEW.—Any electric of regulations under the Federal Power Act connected to the local distribution facilities. utility may file an application with the (16 U.S.C. 791a et seq.). Interconnection services shall be offered Commission for relief from the mandatory ‘‘(n) RULEMAKING FOR NEW QUALIFYING FA- based upon the standards developed by the purchase obligation pursuant to this sub- CILITIES.—(1)(A) Not later than 180 days after Institute of Electrical and Electronics Engi- section on a service territory-wide basis. the date of enactment of this section, the neers: IEEE Standard 1547 for Inter- Such application shall set forth the factual Commission shall issue a rule revising the connecting Distributed Resources with Elec- basis upon which relief is requested and de- criteria in 18 C.F.R. 292.205 for new quali- tric Power Systems, as they may be amended scribe why the conditions set forth in sub- fying cogeneration facilities seeking to sell from time to time. In addition, agreements paragraphs (A), (B) or (C) of paragraph (1) of electric energy pursuant to section 210 of and procedures shall be established whereby this subsection have been met. After notice, this Act to ensure— the services are offered shall promote cur- including sufficient notice to potentially af- ‘‘(i) that the thermal energy output of a rent best practices of interconnection for fected qualifying cogeneration facilities and new qualifying cogeneration facility is used distributed generation, including but not qualifying small power production facilities, in a productive and beneficial manner; limited to practices stipulated in model and an opportunity for comment, the Com- ‘‘(ii) the electrical, thermal, and chemical codes adopted by associations of state regu- mission shall make a final determination output of the cogeneration facility is used latory agencies. All such agreements and within 90 days of such application regarding fundamentally for industrial, commercial, or procedures shall be just and reasonable, and whether the conditions set forth in subpara- institutional purposes and is not intended not unduly discriminatory or preferential.’’. graphs (A), (B) or (C) of paragraph (1) have fundamentally for sale to an electric utility, (b) COMPLIANCE.— been met. taking into account technological, effi- (1) TIME LIMITATIONS.—Section 112 (b) of ‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR- ciency, economic, and variable thermal en- the Public Utility Regulatory Policies Act of CHASE.—At any time after the Commission ergy requirements, as well as State laws ap- 1978 (16 U.S.C. 2622(b)) is amended by adding makes a finding under paragraph (3) reliev- plicable to sales of electric energy from a at the end the following: ing an electric utility of its obligation to qualifying facility to its host facility; and ‘‘(3)(A) Not later than one year after the purchase electric energy, a qualifying cogen- ‘‘(iii) continuing progress in the develop- enactment of this paragraph, each State reg- eration facility, a qualifying small power ment of efficient electric energy generating ulatory authority (with respect to each elec- production facility, a State agency, or any technology. tric utility for which it has ratemaking au- other affected person may apply to the Com- ‘‘(B) The rule issued pursuant to paragraph thority) and each nonregulated utility shall mission for an order reinstating the electric (1)(A) of this subsection shall be applicable commence the consideration referred to in utility’s obligation to purchase electric en- only to facilities that seek to sell electric section 111, or set a hearing date for consid- ergy under this section. Such application energy pursuant to section 210 of this Act. eration, with respect to the standard estab- shall set forth the factual basis upon which For all other purposes, except as specifically lished by paragraph (16) of section 111(d). the application is based and describe why the provided in subsection (m)(2)(A), qualifying ‘‘(B) Not later than two years after the conditions set forth in subparagraphs (A), (B) facility status shall be determined in accord- date of the enactment of the this paragraph, or (C) of paragraph (1) of this subsection are ance with the rules and regulations of this each State regulatory authority (with re- no longer met. After notice, including suffi- Act. spect to each electric utility for which it has cient notice to potentially affected utilities, ‘‘(2) Notwithstanding rule revisions under ratemaking authority), and each nonregu- and opportunity for comment, the Commis- paragraph (1), the Commission’s criteria for lated electric utility, shall complete the con- sion shall issue an order within 90 days of qualifying cogeneration facilities in effect sideration, and shall make the determina- such application reinstating the electric prior to the date on which the Commission tion, referred to in section 111 with respect utility’s obligation to purchase electric en- issues the final rule required by paragraph to each standard established by paragraph ergy under this section if the Commission (1) shall continue to apply to any cogenera- (16) of section 111(d).’’. finds that the conditions set forth in sub- tion facility that— (2) FAILURE TO COMPLY.—Section 112 (d) f paragraphs (A), (B) or (C) of paragraph (1) ‘‘(A) was a qualifying cogeneration facility the Public Utility Regulatory Policies Act of which relieved the obligation to purchase, on the date of enactment of subsection (m), 1978 (16 U.S.C. 2622 (c)) is amended by adding are no longer met. or at the end the following: ‘‘In the case of the ‘‘(5) OBLIGATION TO SELL.—After the date of ‘‘(B) had filed with the Commission a no- standard established by paragraph (16), the enactment of this subsection, no electric tice of self-certification, self-recertification reference contained in this subsection to the utility shall be required to enter into a new or an application for Commission certifi- date of enactment of this Act shall be contract or obligation to sell electric energy cation under 18 C.F.R. 292.207 prior to the deemed to be a reference to the date of en- to a qualifying cogeneration facility or a date on which the Commission issues the actment of paragraph (16).’’. qualifying small power production facility final rule required by paragraph (1).’’. (3) PRIOR STATE ACTIONS.— under this section if the Commission finds (b) ELIMINATION OF OWNERSHIP LIMITA- (A) IN GENERAL.—Section 112 of the Public that— TIONS.— Utility Regulatory Policies Act of 1978 (16 ‘‘(A) competing retail electric suppliers are (1) QUALIFYING SMALL POWER PRODUCTION U.S.C. 2622) is amended by adding at the end willing and able to sell and deliver electric FACILITY.—Section 3(17)(C) of the Federal the following: energy to the qualifying cogeneration facil- Power Act (16 U.S.C. 796(17)(C)) is amended ‘‘(d) PRIOR STATE ACTIONS.—Subsections ity or qualifying small power production fa- to read as follows: (b) and (c) of this section shall not apply to cility; and ‘‘(C) ‘qualifying small power production fa- the standards established by paragraphs (16) ‘‘(B) the electric utility is not required by cility’ means a small power production facil- of section 111(d) in the case of any electric State law to sell electric energy in its serv- ity that the Commission determines, by rule, utility in a State if, before the enactment of ice territory. meets such requirements (including require- this subsection— ‘‘(6) NO EFFECT ON EXISTING RIGHTS AND ments respecting fuel use, fuel efficiency, ‘‘(1) the State has implemented for such REMEDIES.—Nothing in this subsection af- and reliability) as the Commission may, by utility the standard concerned (or a com- fects the rights or remedies of any party rule, prescribe;’’. parable standard); under any contract or obligation, in effect or (2) QUALIFYING COGENERATION FACILITY.— ‘‘(2) the State regulatory authority for pending approval before the appropriate Section 3(18)(B) of the Federal Power Act (16 such State or relevant nonregulated electric State regulatory authority or non-regulated U.S.C. 796(18)(B)) is amended to read as fol- utility has conducted a proceeding to con- electric utility on the date of enactment of lows: sider implementation of the standard con- this subsection, to purchase electric energy ‘‘(B) ‘qualifying cogeneration facility’ cerned (or a comparable standard) for such or capacity from or to sell electric energy or means a cogeneration facility that the Com- utility; or

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‘‘(3) the State legislature has voted on the mission of electric energy in interstate com- (c) HOLDING COMPANY SYSTEMS.—The Com- implementation of such standard (or a com- merce, the sale of electric energy at whole- mission may examine the books, accounts, parable standard) for such utility.’’. sale in interstate commerce, the transpor- memoranda, and other records of any com- (B) CROSS REFERENCE.—Section 124 of such tation of natural gas in interstate com- pany in a holding company system, or any Act (16 U.S.C. 2634) is amended by adding the merce, and the sale in interstate commerce affiliate thereof, as the Commission deter- following at the end thereof: ‘‘In the case of of natural gas for resale for ultimate public mines are relevant to costs incurred by a each standard established by paragraph (16) consumption for domestic, commercial, in- public utility or natural gas company within of section 111(d), the reference contained in dustrial, or any other use. such holding company system and necessary this subsection to the date of enactment of (11) NATURAL GAS COMPANY.—The term or appropriate for the protection of utility the Act shall be deemed to be a reference to ‘‘natural gas company’’ means a person en- customers with respect to jurisdictional the date of enactment of paragraph (16).’’. gaged in the transportation of natural gas in rates. Subtitle F—Repeal of PUHCA interstate commerce or the sale of such gas (d) CONFIDENTIALITY.—No member, officer, SEC. 1261. SHORT TITLE. in interstate commerce for resale. or employee of the Commission shall divulge This subtitle may be cited as the ‘‘Public (12) PERSON.—The term ‘‘person’’ means an any fact or information that may come to Utility Holding Company Act of 2005’’. individual or company. his or her knowledge during the course of ex- SEC. 1262. DEFINITIONS. (13) PUBLIC UTILITY.—The term ‘‘public amination of books, accounts, memoranda, For purposes of this subtitle: utility’’ means any person who owns or oper- or other records as provided in this section, (1) AFFILIATE.—The term ‘‘affiliate’’ of a ates facilities used for transmission of elec- except as may be directed by the Commis- company means any company, 5 percent or tric energy in interstate commerce or sales sion or by a court of competent jurisdiction. more of the outstanding voting securities of of electric energy at wholesale in interstate SEC. 1265. STATE ACCESS TO BOOKS AND which are owned, controlled, or held with commerce. RECORDS. power to vote, directly or indirectly, by such (14) PUBLIC-UTILITY COMPANY.—The term (a) IN GENERAL.—Upon the written request company. ‘‘public-utility company’’ means an electric of a State commission having jurisdiction to (2) ASSOCIATE COMPANY.—The term ‘‘asso- utility company or a gas utility company. regulate a public-utility company in a hold- ciate company’’ of a company means any (15) STATE COMMISSION.—The term ‘‘State ing company system, the holding company company in the same holding company sys- commission’’ means any commission, board, or any associate company or affiliate there- tem with such company. agency, or officer, by whatever name des- of, other than such public-utility company, (3) COMMISSION.—The term ‘‘Commission’’ ignated, of a State, municipality, or other wherever located, shall produce for inspec- means the Federal Energy Regulatory Com- political subdivision of a State that, under tion books, accounts, memoranda, and other mission. the laws of such State, has jurisdiction to records that— (4) COMPANY.—The term ‘‘company’’ means regulate public utility companies. (1) have been identified in reasonable de- a corporation, partnership, association, joint (16) SUBSIDIARY COMPANY.—The term ‘‘sub- tail in a proceeding before the State commis- stock company, business trust, or any orga- sidiary company’’ of a holding company sion; nized group of persons, whether incorporated means— (2) the State commission determines are or not, or a receiver, trustee, or other liqui- (A) any company, 10 percent or more of the relevant to costs incurred by such public- dating agent of any of the foregoing. outstanding voting securities of which are utility company; and (5) ELECTRIC UTILITY COMPANY.—The term directly or indirectly owned, controlled, or (3) are necessary for the effective discharge ‘‘electric utility company’’ means any com- held with power to vote, by such holding of the responsibilities of the State commis- pany that owns or operates facilities used for company; and sion with respect to such proceeding. the generation, transmission, or distribution (B) any person, the management or policies (b) LIMITATION.—Subsection (a) does not of electric energy for sale. of which the Commission, after notice and apply to any person that is a holding com- (6) EXEMPT WHOLESALE GENERATOR AND opportunity for hearing, determines to be pany solely by reason of ownership of 1 or FOREIGN UTILITY COMPANY.—The terms ‘‘ex- subject to a controlling influence, directly or more qualifying facilities under the Public empt wholesale generator’’ and ‘‘foreign util- indirectly, by such holding company (either Utility Regulatory Policies Act of 1978 (16 ity company’’ have the same meanings as in alone or pursuant to an arrangement or un- U.S.C. 2601 et seq.). sections 32 and 33, respectively, of the Public derstanding with 1 or more other persons) so (c) CONFIDENTIALITY OF INFORMATION.—The Utility Holding Company Act of 1935 (15 as to make it necessary for the rate protec- production of books, accounts, memoranda, U.S.C. 79z–5a, 79z–5b), as those sections ex- tion of utility customers with respect to and other records under subsection (a) shall isted on the day before the effective date of rates that such person be subject to the obli- be subject to such terms and conditions as this subtitle. gations, duties, and liabilities imposed by may be necessary and appropriate to safe- (7) GAS UTILITY COMPANY.—The term ‘‘gas this subtitle upon subsidiary companies of guard against unwarranted disclosure to the utility company’’ means any company that holding companies. public of any trade secrets or sensitive com- owns or operates facilities used for distribu- (17) VOTING SECURITY.—The term ‘‘voting mercial information. tion at retail (other than the distribution security’’ means any security presently enti- (d) EFFECT ON STATE LAW.—Nothing in this only in enclosed portable containers or dis- tling the owner or holder thereof to vote in section shall preempt applicable State law tribution to tenants or employees of the the direction or management of the affairs of concerning the provision of books, accounts, company operating such facilities for their a company. memoranda, and other records, or in any own use and not for resale) of natural or SEC. 1263. REPEAL OF THE PUBLIC UTILITY way limit the rights of any State to obtain manufactured gas for heat, light, or power. HOLDING COMPANY ACT OF 1935. books, accounts, memoranda, and other (8) HOLDING COMPANY.—The term ‘‘holding The Public Utility Holding Company Act records under any other Federal law, con- company’’ means— of 1935 (15 U.S.C. 79 et seq.) is repealed. tract, or otherwise. (A) any company that directly or indi- SEC. 1264. FEDERAL ACCESS TO BOOKS AND (e) COURT JURISDICTION.—Any United rectly owns, controls, or holds, with power to RECORDS. States district court located in the State in vote, 10 percent or more of the outstanding (a) IN GENERAL.—Each holding company which the State commission referred to in voting securities of a public-utility company and each associate company thereof shall subsection (a) is located shall have jurisdic- or of a holding company of any public-utility maintain, and shall make available to the tion to enforce compliance with this section. company; and Commission, such books, accounts, memo- SEC. 1266. EXEMPTION AUTHORITY. (B) any person, determined by the Commis- randa, and other records as the Commission (a) RULEMAKING.—Not later than 90 days sion, after notice and opportunity for hear- determines are relevant to costs incurred by after the effective date of this subtitle, the ing, to exercise directly or indirectly (either a public utility or natural gas company that Commission shall issue a final rule to ex- alone or pursuant to an arrangement or un- is an associate company of such holding empt from the requirements of section 1264 derstanding with 1 or more persons) such a company and necessary or appropriate for (relating to Federal access to books and controlling influence over the management the protection of utility customers with re- records) any person that is a holding com- or policies of any public-utility company or spect to jurisdictional rates. pany, solely with respect to 1 or more— holding company as to make it necessary or (b) AFFILIATE COMPANIES.—Each affiliate of (1) qualifying facilities under the Public appropriate for the rate protection of utility a holding company or of any subsidiary com- Utility Regulatory Policies Act of 1978 (16 customers with respect to rates that such pany of a holding company shall maintain, U.S.C. 2601 et seq.); person be subject to the obligations, duties, and shall make available to the Commission, (2) exempt wholesale generators; or and liabilities imposed by this subtitle upon such books, accounts, memoranda, and other (3) foreign utility companies. holding companies. records with respect to any transaction with (b) OTHER AUTHORITY.—The Commission (9) HOLDING COMPANY SYSTEM.—The term another affiliate, as the Commission deter- shall exempt a person or transaction from ‘‘holding company system’’ means a holding mines are relevant to costs incurred by a the requirements of section 1264 (relating to company, together with its subsidiary com- public utility or natural gas company that is Federal access to books and records) if, upon panies. an associate company of such holding com- application or upon the motion of the Com- (10) JURISDICTIONAL RATES.—The term ‘‘ju- pany and necessary or appropriate for the mission— risdictional rates’’ means rates accepted or protection of utility customers with respect (1) the Commission finds that the books, established by the Commission for the trans- to jurisdictional rates. accounts, memoranda, and other records of

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00123 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.061 H20PT1 H2276 CONGRESSIONAL RECORD — HOUSE April 20, 2005 any person are not relevant to the jurisdic- SEC. 1273. TRANSFER OF RESOURCES. Subtitle G—Market Transparency, tional rates of a public utility or natural gas All books and records that relate primarily Enforcement, and Consumer Protection company; or to the functions transferred to the Commis- SEC. 1281. MARKET TRANSPARENCY RULES. (2) the Commission finds that any class of sion under this subtitle shall be transferred Part II of the Federal Power Act (16 U.S.C. transactions is not relevant to the jurisdic- from the Securities and Exchange Commis- 824 et seq.) is amended by adding at the end tional rates of a public utility or natural gas sion to the Commission. the following: company. SEC. 1274. EFFECTIVE DATE. ‘‘SEC. 220. MARKET TRANSPARENCY RULES. SEC. 1267. AFFILIATE TRANSACTIONS. (a) IN GENERAL.—Except for section 1272 ‘‘(a) IN GENERAL.—Not later than 180 days (a) COMMISSION AUTHORITY UNAFFECTED.— (relating to implementation), this subtitle after the date of enactment of this section, Nothing in this subtitle shall limit the au- shall take effect 12 months after the date of the Commission shall issue rules estab- thority of the Commission under the Federal enactment of this subtitle. lishing an electronic information system to Power Act (16 U.S.C. 791a et seq.) to require (b) COMPLIANCE WITH CERTAIN RULES.—If provide the Commission and the public with that jurisdictional rates are just and reason- the Commission approves and makes effec- access to such information as is necessary or able, including the ability to deny or approve tive any final rulemaking modifying the appropriate to facilitate price transparency the pass through of costs, the prevention of standards of conduct governing entities that and participation in markets subject to the cross-subsidization, and the issuance of such own, operate, or control facilities for trans- Commission’s jurisdiction under this Act. rules and regulations as are necessary or ap- mission of electricity in interstate com- Such systems shall provide information propriate for the protection of utility con- merce or transportation of natural gas in about the availability and market price of sumers. interstate commerce prior to the effective wholesale electric energy and transmission (b) RECOVERY OF COSTS.—Nothing in this date of this subtitle, any action taken by a services to the Commission, State commis- subtitle shall preclude the Commission or a public-utility company or utility holding sions, buyers and sellers of wholesale electric State commission from exercising its juris- company to comply with the requirements of energy, users of transmission services, and diction under otherwise applicable law to de- such rulemaking shall not subject such pub- the public on a timely basis. The Commis- termine whether a public-utility company, lic-utility company or utility holding com- sion shall have authority to obtain such in- public utility, or natural gas company may pany to any regulatory requirement applica- formation from any electric utility or trans- recover in rates any costs of an activity per- ble to a holding company under the Public mitting utility, including any entity de- formed by an associate company, or any Utility Holding Company Act of 1935 (15 scribed in section 201(f). costs of goods or services acquired by such U.S.C. 79 et seq.). ‘‘(b) EXEMPTIONS.—The Commission shall public-utility company from an associate SEC. 1275. SERVICE ALLOCATION. exempt from disclosure information it deter- company. (a) FERC REVIEW.—In the case of non- mines would, if disclosed, be detrimental to SEC. 1268. APPLICABILITY. power goods or administrative or manage- the operation of an effective market or jeop- Except as otherwise specifically provided ment services provided by an associate com- ardize system security. This section shall in this subtitle, no provision of this subtitle pany organized specifically for the purpose not apply to transactions for the purchase or shall apply to, or be deemed to include— of providing such goods or services to any sale of wholesale electric energy or trans- (1) the United States; public utility in the same holding company mission services within the area described in (2) a State or any political subdivision of a system, at the election of the system or a section 212(k)(2)(A). In determining the in- State; State commission having jurisdiction over formation to be made available under this (3) any foreign governmental authority not the public utility, the Commission, after the section and time to make such information operating in the United States; effective date of this subtitle, shall review available, the Commission shall seek to en- (4) any agency, authority, or instrumen- and authorize the allocation of the costs for sure that consumers and competitive mar- tality of any entity referred to in paragraph such goods or services to the extent relevant kets are protected from the adverse effects (1), (2), or (3); or to that associate company in order to assure of potential collusion or other anti-competi- (5) any officer, agent, or employee of any that each allocation is appropriate for the tive behaviors that can be facilitated by un- entity referred to in paragraph (1), (2), (3), or protection of investors and consumers of timely public disclosure of transaction-spe- (4) acting as such in the course of his or her such public utility. cific information. ‘‘(c) COMMODITY FUTURES TRADING COMMIS- official duty. (b) COST ALLOCATION.—Nothing in this sec- tion shall preclude the Commission or a SION.—This section shall not affect the exclu- SEC. 1269. EFFECT ON OTHER REGULATIONS. sive jurisdiction of the Commodity Futures Nothing in this subtitle precludes the Com- State commission from exercising its juris- Trading Commission with respect to ac- mission or a State commission from exer- diction under other applicable law with re- counts, agreements, contracts, or trans- cising its jurisdiction under otherwise appli- spect to the review or authorization of any actions in commodities under the Com- cable law to protect utility customers. costs allocated to a public utility in a hold- ing company system located in the affected modity Exchange Act (7 U.S.C. 1 et seq.). SEC. 1270. ENFORCEMENT. State as a result of the acquisition of non- ‘‘(d) SAVINGS PROVISION.—In exercising its The Commission shall have the same pow- power goods or administrative and manage- authority under this section, the Commis- ers as set forth in sections 306 through 317 of ment services by such public utility from an sion shall not— the Federal Power Act (16 U.S.C. 825e–825p) associate company organized specifically for ‘‘(1) compete with, or displace from the to enforce the provisions of this subtitle. that purpose. market place, any price publisher; or SEC. 1271. SAVINGS PROVISIONS. (c) RULES.—Not later than 6 months after ‘‘(2) regulate price publishers or impose (a) IN GENERAL.—Nothing in this subtitle, the date of enactment of this Act, the Com- any requirements on the publication of infor- or otherwise in the Public Utility Holding mission shall issue rules (which rules shall mation.’’. Company Act of 1935, or rules, regulations, be effective no earlier than the effective date SEC. 1282. MARKET MANIPULATION. or orders thereunder, prohibits a person from of this subtitle) to exempt from the require- Part II of the Federal Power Act (16 U.S.C. engaging in or continuing to engage in ac- ments of this section any company in a hold- 824 et seq.) is amended by adding at the end tivities or transactions in which it is legally ing company system whose public utility op- the following: engaged or authorized to engage on the date erations are confined substantially to a sin- ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFOR- of enactment of this Act, if that person con- gle State and any other class of transactions MATION. tinues to comply with the terms (other than that the Commission finds is not relevant to ‘‘No person or other entity (including an an expiration date or termination date) of the jurisdictional rates of a public utility. entity described in section 201(f)) shall will- any such authorization, whether by rule or (d) PUBLIC UTILITY.—As used in this sec- fully and knowingly report any information by order. tion, the term ‘‘public utility’’ has the mean- relating to the price of electricity sold at (b) EFFECT ON OTHER COMMISSION AUTHOR- ing given that term in section 201(e) of the wholesale or availability of transmission ca- ITY.—Nothing in this subtitle limits the au- Federal Power Act. pacity, which information the person or any thority of the Commission under the Federal SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. other entity knew to be false at the time of Power Act (16 U.S.C. 791a et seq.) or the Nat- There are authorized to be appropriated the reporting, to a Federal agency with in- ural Gas Act (15 U.S.C. 717 et seq.). such funds as may be necessary to carry out tent to fraudulently affect the data being SEC. 1272. IMPLEMENTATION. this subtitle. compiled by such Federal agency. Not later than 12 months after the date of SEC. 1277. CONFORMING AMENDMENTS TO THE ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRAD- enactment of this subtitle, the Commission FEDERAL POWER ACT. ING. shall— (a) CONFLICT OF JURISDICTION.—Section 318 ‘‘(a) PROHIBITION.—No person or other enti- (1) issue such regulations as may be nec- of the Federal Power Act (16 U.S.C. 825q) is ty (including an entity described in section essary or appropriate to implement this sub- repealed. 201(f)) shall willfully and knowingly enter title (other than section 1265, relating to (b) DEFINITIONS.—(1) Section 201(g)(5) of the into any contract or other arrangement to State access to books and records); and Federal Power Act (16 U.S.C. 824(g)(5)) is execute a ‘round trip trade’ for the purchase (2) submit to Congress detailed rec- amended by striking ‘‘1935’’ and inserting or sale of electric energy at wholesale. ommendations on technical and conforming ‘‘2005’’. ‘‘(b) DEFINITION.—For the purposes of this amendments to Federal law necessary to (2) Section 214 of the Federal Power Act (16 section, the term ‘round trip trade’ means a carry out this subtitle and the amendments U.S.C. 824m) is amended by striking ‘‘1935’’ transaction, or combination of transactions, made by this subtitle. and inserting ‘‘2005’’. in which a person or any other entity—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00124 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.061 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2277 ‘‘(1) enters into a contract or other ar- SEC. 1285. REFUND AUTHORITY. consumer information obtained in connec- rangement to purchase from, or sell to, any Section 206 of the Federal Power Act (16 tion with the sale or delivery of electric en- other person or other entity electric energy U.S.C. 824e) is amended by adding the fol- ergy to electric consumers. at wholesale; lowing new subsection at the end thereof: (b) SLAMMING.—The Federal Trade Com- ‘‘(2) simultaneously with entering into the ‘‘(e)(1) Except as provided in paragraph (2), mission may issue rules prohibiting the contract or arrangement described in para- if an entity described in section 201(f) volun- change of selection of an electric utility ex- graph (1), arranges a financially offsetting tarily makes a short-term sale of electric en- cept with the informed consent of the elec- trade with such other person or entity for ergy and the sale violates Commission rules tric consumer or if approved by the appro- the same such electric energy, at the same in effect at the time of the sale, such entity priate State regulatory authority. location, price, quantity and terms so that, shall be subject to the Commission’s refund (c) CRAMMING.—The Federal Trade Com- collectively, the purchase and sale trans- authority under this section with respect to mission may issue rules prohibiting the sale actions in themselves result in no financial such violation. of goods and services to an electric consumer gain or loss; and ‘‘(2) This section shall not apply to— unless expressly authorized by law or the ‘‘(3) enters into the contract or arrange- ‘‘(A) any entity that sells less than electric consumer. (d) RULEMAKING.—The Federal Trade Com- ment with a specific intent to fraudulently 8,000,000 megawatt hours of electricity per mission shall proceed in accordance with affect reported revenues, trading volumes, or year; or section 553 of title 5, United States Code, prices.’’. ‘‘(B) any electric cooperative. ‘‘(3) For purposes of this subsection, the when prescribing a rule under this section. SEC. 1283. ENFORCEMENT. (e) STATE AUTHORITY.—If the Federal term ‘short-term sale’ means an agreement Trade Commission determines that a State’s (a) COMPLAINTS.—Section 306 of the Federal for the sale of electric energy at wholesale in Power Act (16 U.S.C. 825e) is amended as fol- regulations provide equivalent or greater interstate commerce that is for a period of 31 protection than the provisions of this sec- lows: days or less (excluding monthly contracts (1) By inserting ‘‘electric utility,’’ after tion, such State regulations shall apply in subject to automatic renewal). that State in lieu of the regulations issued ‘‘Any person,’’. ‘‘(4) The Commission shall have refund au- (2) By inserting ‘‘, transmitting utility,’’ by the Commission under this section. thority under subsection (e)(1) with respect (f) DEFINITIONS.—For purposes of this sec- after ‘‘licensee’’ each place it appears. to a voluntary short-term sale of electric en- tion: (b) REVIEW OF COMMISSION ORDERS.—Sec- ergy by the Bonneville Power Administra- (1) STATE REGULATORY AUTHORITY.—The tion 313(a) of the Federal Power Act (16 tion (in this section ‘Bonneville’) only if the term ‘‘State regulatory authority’’ has the U.S.C. 8251) is amended by inserting ‘‘electric sale is at an unjust and unreasonable rate meaning given that term in section 3(21) of utility,’’ after ‘‘person,’’ in the first 2 places and, in that event, may order a refund only the Federal Power Act (16 U.S.C. 796(21)). it appears and by striking ‘‘any person un- for short-term sales made by Bonneville at (2) ELECTRIC CONSUMER AND ELECTRIC UTIL- less such person’’ and inserting ‘‘any entity rates that are higher than the highest just ITY.—The terms ‘‘electric consumer’’ and unless such entity’’. and reasonable rate charged by any other en- ‘‘electric utility’’ have the meanings given (c) INVESTIGATIONS.—Section 307(a) of the tity for a short-term sale of electric energy those terms in section 3 of the Public Utility Federal Power Act (16 U.S.C. 825f(a)) is in the same geographic market for the same, Regulatory Policies Act of 1978 (16 U.S.C. amended as follows: or most nearly comparable, period as the 2602). sale by Bonneville. (1) By inserting ‘‘, electric utility, trans- Subtitle H—Merger Reform mitting utility, or other entity’’ after ‘‘per- ‘‘(5) With respect to any Federal power SEC. 1291. MERGER REVIEW REFORM AND AC- son’’ each time it appears. marketing agency or the Tennessee Valley Authority, the Commission shall not assert COUNTABILITY. (2) By striking the period at the end of the (a) MERGER REVIEW REFORM.—Within 180 or exercise any regulatory authority or pow- first sentence and inserting the following: days after the date of enactment of this Act, ers under subsection (e)(1) other than the or- ‘‘or in obtaining information about the sale the Secretary of Energy, in consultation dering of refunds to achieve a just and rea- of electric energy at wholesale in interstate with the Federal Energy Regulatory Com- sonable rate.’’. commerce and the transmission of electric mission and the Attorney General of the energy in interstate commerce.’’. SEC. 1286. SANCTITY OF CONTRACT. United States, shall prepare, and transmit to (d) CRIMINAL PENALTIES.—Section 316 of (a) IN GENERAL.—The Federal Energy Reg- Congress each of the following: the Federal Power Act (16 U.S.C. 825o) is ulatory Commission (in this section, ‘‘the (1) A study of the extent to which the au- amended— Commission’’) shall have no authority to ab- thorities vested in the Federal Energy Regu- (1) in subsection (a), by striking ‘‘$5,000’’ rogate or modify any provision of an exe- latory Commission under section 203 of the and inserting ‘‘$1,000,000’’, and by striking cuted contract or executed contract amend- Federal Power Act are duplicative of au- ‘‘two years’’ and inserting ‘‘5 years’’; ment described in subsection (b) that has thorities vested in— (2) in subsection (b), by striking ‘‘$500’’ and been entered into or taken effect, except (A) other agencies of Federal and State inserting ‘‘$25,000’’; and upon a finding that failure to take such ac- Government; and (3) by striking subsection (c). tion would be contrary to the public inter- (B) the Federal Energy Regulatory Com- est. (e) CIVIL PENALTIES.—Section 316A of the mission, including under sections 205 and 206 IMITATION.—Except as provided in sub- Federal Power Act (16 U.S.C. 825o–1) is (b) L of the Federal Power Act. section (c), this section shall apply only to a amended as follows: (2) Recommendations on reforms to the contract or contract amendment— (1) In subsections (a) and (b), by striking Federal Power Act that would eliminate any (1) executed on or after the date of enact- ‘‘section 211, 212, 213, or 214’’ each place it ap- unnecessary duplication in the exercise of ment of this Act; and pears and inserting ‘‘Part II’’. regulatory authority or unnecessary delays (2) entered into— (2) In subsection (b), by striking ‘‘$10,000’’ in the approval (or disapproval) of applica- (A) for the purchase or sale of electric en- and inserting ‘‘$1,000,000’’. tions for the sale, lease, or other disposition ergy under section 205 of the Federal Power of public utility facilities. SEC. 1284. REFUND EFFECTIVE DATE. Act (16 U.S.C. 824d) where the seller has been (b) MERGER REVIEW ACCOUNTABILITY.—Not Section 206(b) of the Federal Power Act (16 authorized by the Commission to charge later than 1 year after the date of enactment U.S.C. 824e(b)) is amended as follows: market-based rates; or of this Act and annually thereafter, with re- (1) By striking ‘‘the date 60 days after the (B) under section 4 of the Natural Gas Act spect to all orders issued within the pre- filing of such complaint nor later than 5 (15 U.S.C. 717c) where the natural gas com- ceding year that impose a condition on a months after the expiration of such 60-day pany has been authorized by the Commission sale, lease, or other disposition of public period’’ in the second sentence and inserting to charge market-based rates for the service utility facilities under section 203(b) of the ‘‘the date of the filing of such complaint nor described in the contract. Federal Power Act, the Federal Energy Reg- later than 5 months after the filing of such (c) EXCLUSION.—This section shall not ulatory Commission shall transmit a report complaint’’. apply to an executed contract or executed to Congress explaining each of the following: (2) By striking ‘‘60 days after’’ in the third contract amendment that expressly provides (1) The condition imposed. sentence and inserting ‘‘of’’. for a standard of review other than the pub- (2) Whether the Commission could have (3) By striking ‘‘expiration of such 60-day lic interest standard. imposed such condition by exercising its au- period’’ in the third sentence and inserting (d) SAVINGS PROVISION.—With respect to thority under any provision of the Federal ‘‘publication date’’. contracts to which this section does not Power Act other than under section 203(b). (4) By striking the fifth sentence and in- apply, nothing in this section alters existing (3) If the Commission could not have im- serting the following: ‘‘If no final decision is law regarding the applicable standard of re- posed such condition other than under sec- rendered by the conclusion of the 180-day pe- view for a contract subject to the jurisdic- tion 203(b), why the Commission determined riod commencing upon initiation of a pro- tion of the Commission. that such condition was consistent with the ceeding pursuant to this section, the Com- SEC. 1287. CONSUMER PRIVACY AND UNFAIR public interest. mission shall state the reasons why it has TRADE PRACTICES. SEC. 1292. ELECTRIC UTILITY MERGERS. failed to do so and shall state its best esti- (a) PRIVACY.—The Federal Trade Commis- (a) AMENDMENT.—Section 203(a) of the Fed- mate as to when it reasonably expects to sion may issue rules protecting the privacy eral Power Act (16 U.S.C. 824b(a)) is amended make such decision.’’. of electric consumers from the disclosure of to read as follows:

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‘‘(a)(1) No public utility shall, without first ‘‘(22) ELECTRIC UTILITY.—The term ‘electric (C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; and having secured an order of the Commission utility’ means any person or Federal or (D) striking ‘‘termination of modification’’ authorizing it to do so— State agency (including any entity described and inserting ‘‘termination or modifica- ‘‘(A) sell, lease, or otherwise dispose of the in section 201(f)) that sells electric energy; tion’’. whole of its facilities subject to the jurisdic- such term includes the Tennessee Valley Au- (5) Section 211(d)(1) of such Act (16 U.S.C. tion of the Commission, or any part thereof thority and each Federal power marketing 824j(d)(1)) is amended by striking ‘‘electric of a value in excess of $10,000,000; administration.’’. utility’’ the second time it appears and in- ‘‘(B) merge or consolidate, directly or indi- (b) TRANSMITTING UTILITY.—Section 3(23) of serting ‘‘transmitting utility’’. rectly, such facilities or any part thereof the Federal Power Act (16 U.S.C. 796(23)) is (6) Section 315 (c) of such Act (16 U.S.C. with those of any other person, by any amended to read as follows: 825n(c)) is amended by striking ‘‘subsection’’ means whatsoever; or ‘‘(23) TRANSMITTING UTILITY.—The term and inserting ‘‘section’’. ‘‘(C) purchase, acquire, or take any secu- ‘transmitting utility’ means an entity, in- Subtitle K—Economic Dispatch rity with a value in excess of $10,000,000 of cluding any entity described in section 201(f), SEC. 1298. ECONOMIC DISPATCH. any other public utility. that owns, operates, or controls facilities Part II of the Federal Power Act (16 U.S.C. ‘‘(2) No holding company in a holding com- used for the transmission of electric en- 824 et seq.) is amended by adding at the end pany system that includes a public utility ergy— the following: shall purchase, acquire, or take any security ‘‘(A) in interstate commerce; or ‘‘SEC. 223. JOINT BOARD ON ECONOMIC DIS- with a value in excess of $10,000,000 of, or, by ‘‘(B) for the sale of electric energy at PATCH. any means whatsoever, directly or indi- wholesale.’’. ‘‘(a) IN GENERAL.—The Commission shall rectly, merge or consolidate with, a public (c) ADDITIONAL DEFINITIONS.—Section 3 of convene a joint board pursuant to section 209 utility or a holding company in a holding the Federal Power Act (16 U.S.C. 796) is of this Act to study the issue of security con- company system that includes a public util- amended by adding at the end the following: strained economic dispatch for a market re- ity with a value in excess of $10,000,000 with- ‘‘(26) ELECTRIC COOPERATIVE.—The term gion. out first having secured an order of the Com- ‘electric cooperative’ means a cooperatively ‘‘(b) MEMBERSHIP.—The Commission shall mission authorizing it to do so. owned electric utility. request each State to nominate a representa- ‘‘(3) Upon receipt of an application for such ‘‘(27) RTO.—The term ‘Regional Trans- tive for such joint board. approval the Commission shall give reason- mission Organization’ or ‘RTO’ means an en- ‘‘(c) POWERS.—The board’s sole authority able notice in writing to the Governor and tity of sufficient regional scope approved by shall be to consider issues relevant to what State commission of each of the States in the Commission to exercise operational or constitutes ‘security constrained economic which the physical property affected, or any functional control of facilities used for the dispatch’ and how such a mode of operating part thereof, is situated, and to such other transmission of electric energy in interstate an electric energy system affects or en- persons as it may deem advisable. hances the reliability and affordability of ‘‘(4) After notice and opportunity for hear- commerce and to ensure nondiscriminatory access to such facilities. service to customers. ing, the Commission shall approve the pro- ‘‘(d) REPORT TO THE CONGRESS.—The board posed disposition, consolidation, acquisition, ‘‘(28) ISO.—The term ‘Independent System Operator’ or ‘ISO’ means an entity approved shall issue a report on these matters within or change in control, if it finds that the pro- one year of enactment of this section, in- by the Commission to exercise operational posed transaction will be consistent with the cluding any consensus recommendations for or functional control of facilities used for public interest. In evaluating whether a statutory or regulatory reform.’’. transaction will be consistent with the pub- the transmission of electric energy in inter- TITLE XIII—ENERGY TAX INCENTIVES lic interest, the Commission shall consider state commerce and to ensure nondiscrim- whether the proposed transaction— inatory access to such facilities.’’. SEC. 1300. SHORT TITLE; ETC. ‘‘(A) will adequately protect consumer in- (d) COMMISSION.—For the purposes of this (a) SHORT TITLE.—This title may be cited terests; title, the term ‘‘Commission’’ means the as the ‘‘Enhanced Energy Infrastructure and ‘‘(B) will be consistent with competitive Federal Energy Regulatory Commission. Technology Tax Act of 2005’’. (b) AMENDMENT OF 1986 CODE.—Except as wholesale markets; (e) APPLICABILITY.—Section 201(f) of the otherwise expressly provided, whenever in ‘‘(C) will impair the financial integrity of Federal Power Act (16 U.S.C. 824(f)) is this title an amendment or repeal is ex- any public utility that is a party to the amended by adding after ‘‘political subdivi- pressed in terms of an amendment to, or re- transaction or an associate company of any sion of a state,’’ the following: ‘‘an electric cooperative that has financing under the peal of, a section or other provision, the ref- party to the transaction; and erence shall be considered to be made to a ‘‘(D) satisfies such other criteria as the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 mega- section or other provision of the Internal Commission considers consistent with the Revenue Code of 1986. public interest. watt hours of electricity per year,’’. Subtitle A—Energy Infrastructure Tax ‘‘(5) The Commission shall, by rule, adopt Subtitle J—Technical and Conforming Incentives procedures for the expeditious consideration Amendments SEC. 1301. NATURAL GAS GATHERING LINES of applications for the approval of disposi- SEC. 1297. CONFORMING AMENDMENTS. TREATED AS 7-YEAR PROPERTY. tions, consolidations, or acquisitions under The Federal Power Act is amended as fol- this section. Such rules shall identify classes (a) IN GENERAL.—Subparagraph (C) of sec- lows: of transactions, or specify criteria for trans- tion 168(e)(3) (relating to classification of (1) Section 201(b)(2) of such Act (16 U.S.C. actions, that normally meet the standards certain property) is amended by striking 824(b)(2)) is amended as follows: established in paragraph (4). The Commis- ‘‘and’’ at the end of clause (iii), by redesig- (A) In the first sentence by striking ‘‘210, sion shall provide expedited review for such nating clause (iv) as clause (v), and by in- transactions. The Commission shall grant or 211, and 212’’ and inserting ‘‘203(a)(2), 206(e), serting after clause (iii) the following new deny any other application for approval of a 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, clause: transaction not later than 180 days after the 221, and 222’’. ‘‘(iv) any natural gas gathering line, and’’. application is filed. If the Commission does (B) In the second sentence by striking ‘‘210 (b) NATURAL GAS GATHERING LINE.—Sub- not act within 180 days, such application or 211’’ and inserting ‘‘203(a)(2), 206(e), 210, section (i) of section 168 is amended by in- shall be deemed granted unless the Commis- 211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, serting after paragraph (16) the following sion finds, based on good cause, that further and 222’’. new paragraph: consideration is required to determine (C) Section 201(b)(2) of such Act is amended ‘‘(17) NATURAL GAS GATHERING LINE.—The whether the proposed transaction meets the by striking ‘‘The’’ in the first place it ap- term ‘natural gas gathering line’ means— standards of paragraph (4) and issues an pears and inserting ‘‘Notwithstanding sec- ‘‘(A) the pipe, equipment, and appur- order tolling the time for acting on the ap- tion 201(f), the’’ and in the second sentence tenances determined to be a gathering line plication for not more than 180 days, at the after ‘‘any order’’ by inserting ‘‘or rule’’. by the Federal Energy Regulatory Commis- end of which additional period the Commis- (2) Section 201(e) of such Act is amended by sion, and sion shall grant or deny the application. striking ‘‘210, 211, or 212’’ and inserting ‘‘(B) the pipe, equipment, and appur- ‘‘(6) For purposes of this subsection, the ‘‘206(e), 206(f), 210, 211, 211A, 212, 215, 216, 217, tenances used to deliver natural gas from the terms ‘associate company’, ‘holding com- 218, 219, 220, 221, and 222’’. wellhead or a commonpoint to the point at pany’, and ‘holding company system’ have (3) Section 206 of such Act (16 U.S.C. 824e) which such gas first reaches— the meaning given those terms in the Public is amended as follows: ‘‘(i) a gas processing plant, Utility Holding Company Act of 2005.’’. (A) In subsection (b), in the seventh sen- ‘‘(ii) an interconnection with a trans- (b) EFFECTIVE DATE.—The amendments tence, by striking ‘‘the public utility to mission pipeline for which a certificate as an made by this section shall take effect 12 make’’. interstate transmission pipeline has been months after the date of enactment of this (B) In the first sentence of subsection (a), issued by the Federal Energy Regulatory section. by striking ‘‘hearing had’’ and inserting Commission, Subtitle I—Definitions ‘‘hearing held’’. ‘‘(iii) an interconnection with an intra- SEC. 1295. DEFINITIONS. (4) Section 211(c) of such Act (16 U.S.C. state transmission pipeline, or (a) ELECTRIC UTILITY.—Section 3(22) of the 824j(c)) is amended by— ‘‘(iv) a direct interconnection with a local Federal Power Act (16 U.S.C. 796(22)) is (A) striking ‘‘(2)’’; distribution company, a gas storage facility, amended to read as follows: (B) striking ‘‘(A)’’ and inserting ‘‘(1)’’ or an industrial consumer.’’.

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(c) ALTERNATIVE SYSTEM.—The table con- (d) EFFECTIVE DATE.—The amendments (A) by inserting ‘‘(as in effect before the re- tained in section 168(g)(3)(B) is amended by made by this section shall apply to facilities peal of such section)’’ after ‘‘1978’’, and inserting after the item relating to subpara- placed in service after April 11, 2005. (B) by striking subsection (e) and redesig- graph (C)(iii) the following: SEC. 1305. MODIFICATION OF CREDIT FOR PRO- nating subsections (f) and (g) as subsections ‘‘(C) (iv) ...... 14’’. DUCING FUEL FROM A NONCONVEN- (e) and (f), respectively. TIONAL SOURCE. (2) CONFORMING AMENDMENTS.—Section (d) ALTERNATIVE MINIMUM TAX EXCEP- (a) TREATMENT AS BUSINESS CREDIT.— 29(g)(1)(before redesignation under sub- TION.—Subparagraph (B) of section 56(a)(1) is (1) CREDIT MOVED TO SUBPART RELATING TO section (a) and paragraph (1) of this sub- amended by inserting before the period the BUSINESS RELATED CREDITS.—The Internal section) is amended— following: ‘‘, or in section 168(e)(3)(C)(iv)’’. Revenue Code of 1986 is amended by redesig- (A) in subparagraph (A) by striking ‘‘sub- (e) EFFECTIVE DATE.—The amendments nating section 29 as section 45J and by mov- section (f)(1)(B)’’ and inserting ‘‘subsection made by this section shall apply to property ing section 45J (as so redesignated) from sub- placed in service after April 11, 2005. (e)(1)(B)’’, and part B of part IV of subchapter A of chapter (B) in subparagraph (B) by striking ‘‘sub- SEC. 1302. NATURAL GAS DISTRIBUTION LINES 1 to the end of subpart D of part IV of sub- section (f)’’ and inserting ‘‘subsection (e)’’. TREATED AS 15-YEAR PROPERTY. chapter A of chapter 1. (c) EFFECTIVE DATES.— (a) IN GENERAL.—Subparagraph (E) of sec- (2) CREDIT TREATED AS BUSINESS CREDIT.— (1) IN GENERAL.—Except as provided in tion 168(e)(3) (relating to classification of Section 38(b) is amended by striking ‘‘plus’’ paragraph (2), the amendments made by this certain property) is amended by striking at the end of paragraph (18), by striking the section shall apply to credits determined ‘‘and’’ at the end of clause (v), by striking period at the end of paragraph (19) and in- under the Internal Revenue Code of 1986 for the period at the end of clause (vi) and in- serting ‘‘, plus’’, and by adding at the end the taxable years ending after December 31, 2005. serting ‘‘, and’’, and by adding at the end the following: (2) SUBSECTION (b).—The amendments made following new clause: ‘‘(20) the nonconventional source produc- by subsection (b) shall take effect on the ‘‘(vii) any natural gas distribution line.’’. tion credit determined under section date of the enactment of this Act. (b) ALTERNATIVE SYSTEM.—The table con- 45J(a).’’. SEC. 1306. MODIFICATIONS TO SPECIAL RULES tained in section 168(g)(3)(B) is amended by (3) CONFORMING AMENDMENTS.— FOR NUCLEAR DECOMMISSIONING inserting after the item relating to subpara- (A) Section 30(b)(3)(A) is amended by strik- COSTS. graph (E)(vi) the following: ing ‘‘sections 27 and 29’’ and inserting ‘‘sec- (a) REPEAL OF LIMITATION ON DEPOSITS INTO ‘‘(E) (vii) ...... 35’’. tion 27’’. FUND BASED ON COST OF SERVICE; CONTRIBU- (B) Sections 43(b)(2), 45I(b)(2)(C)(i), and (c) EFFECTIVE DATE.—The amendments TIONS AFTER FUNDING PERIOD.—Subsection 613A(c)(6)(C) are each amended by striking made by this section shall apply to property (b) of section 468A (relating to special rules ‘‘section 29(d)(2)(C)’’ and inserting ‘‘section placed in service after April 11, 2005. for nuclear decommissioning costs) is 45J(d)(2)(C)’’. amended to read as follows: SEC. 1303. ELECTRIC TRANSMISSION PROPERTY (C) Section 45(e)(9) is amended— ‘‘(b) LIMITATION ON AMOUNTS PAID INTO TREATED AS 15-YEAR PROPERTY. (i) by striking ‘‘section 29’’ and inserting FUND.—The amount which a taxpayer may (a) IN GENERAL.—Subparagraph (E) of sec- ‘‘section 45J’’, and pay into the Fund for any taxable year shall tion 168(e)(3) (relating to classification of (ii) by inserting ‘‘(or under section 29, as in not exceed the ruling amount applicable to certain property), as amended by section 1302 effect on the day before the date of enact- such taxable year.’’. of this title, is amended by striking ‘‘and’’ at ment of the Enhanced Energy Infrastructure (b) TREATMENT OF CERTAIN DECOMMIS- the end of clause (vi), by striking the period and Technology Tax Act of 2005, for any prior SIONING COSTS.— at the end of clause (vii) and inserting ‘‘, taxable year)’’ before the period at the end (1) IN GENERAL.—Section 468A is amended and’’, and by adding at the end the following thereof. by redesignating subsections (f) and (g) as new clause: (D) Section 45I is amended— subsections (g) and (h), respectively, and by ‘‘(viii) any section 1245 property (as defined (i) in subsection (c)(2)(A) by striking ‘‘sec- inserting after subsection (e) the following in section 1245(a)(3)) used in the transmission tion 29(d)(5))’’ and inserting ‘‘section new subsection: at 69 or more kilovolts of electricity for sale 45J(d)(5))’’, and ‘‘(f) TRANSFERS INTO QUALIFIED FUNDS.— and the original use of which commences (ii) in subsection (d)(3) by striking ‘‘section ‘‘(1) IN GENERAL.—Notwithstanding sub- with the taxpayer after April 11, 2005.’’. 29’’ both places it appears and inserting ‘‘sec- section (b), any taxpayer maintaining a (b) ALTERNATIVE SYSTEM.—The table con- tion 45J’’. Fund to which this section applies with re- tained in section 168(g)(3)(B) is amended by (E) Section 45J(a), as redesignated by para- spect to a nuclear power plant may transfer inserting after the item relating to subpara- graph (1), is amended by striking ‘‘There into such Fund not more than an amount graph (E)(vii) the following: shall be allowed as a credit against the tax equal to the present value of the portion of ‘‘(E) (viii) ...... 30’’. imposed by this chapter for the taxable the total nuclear decommissioning costs year’’ and inserting ‘‘For purposes of section (c) EFFECTIVE DATE.—The amendments with respect to such nuclear power plant pre- made by this section shall apply to property 38, if the taxpayer elects to have this section viously excluded for such nuclear power placed in service after April 11, 2005. apply, the nonconventional source produc- plant under subsection (d)(2)(A) as in effect tion credit determined under this section for immediately before the date of the enact- SEC. 1304. EXPANSION OF AMORTIZATION FOR the taxable year is’’. CERTAIN ATMOSPHERIC POLLUTION ment of the Enhanced Energy Infrastructure CONTROL FACILITIES IN CONNEC- (F) Section 45J(b), as so redesignated, is and Technology Tax Act of 2005. TION WITH PLANTS FIRST PLACED amended by striking paragraph (6). ‘‘(2) DEDUCTION FOR AMOUNTS TRANS- IN SERVICE AFTER 1975. (G) Section 53(d)(1)(B)(iii) is amended by FERRED.— (a) ELIGIBILITY OF POST-1975 POLLUTION striking ‘‘under section 29’’ and all that fol- ‘‘(A) IN GENERAL.—Except as provided in CONTROL FACILITIES.—Subsection (d) of sec- lows through ‘‘or not allowed’’. subparagraph (C), the deduction allowed by tion 169 (relating to definitions) is amended (H) Section 55(c)(3) is amended by striking subsection (a) for any transfer permitted by by adding at the end the following: ‘‘29(b)(6),’’. this subsection shall be allowed ratably over ‘‘(5) SPECIAL RULE RELATING TO CERTAIN AT- (I) Subsection (a) of section 772 is amended the remaining estimated useful life (within MOSPHERIC POLLUTION CONTROL FACILITIES.— by inserting ‘‘and’’ at the end of paragraph the meaning of subsection (d)(2)(A)) of the In the case of any atmospheric pollution con- (9), by striking paragraph (10), and by redes- nuclear power plant beginning with the tax- trol facility which is placed in service after ignating paragraph (11) as paragraph (10). able year during which the transfer is made. April 11, 2005, and used in connection with an (J) Paragraph (5) of section 772(d) is ‘‘(B) DENIAL OF DEDUCTION FOR PREVIOUSLY electric generation plant or other property amended by striking ‘‘the foreign tax credit, DEDUCTED AMOUNTS.—No deduction shall be which is primarily coal fired, paragraph (1) and the credit allowable under section 29’’ allowed for any transfer under this sub- shall be applied without regard to the phrase and inserting ‘‘and the foreign tax credit’’. section of an amount for which a deduction ‘in operation before January 1, 1976’.’’. (K) The table of sections for subpart B of was previously allowed to the taxpayer (or a (b) TREATMENT AS NEW IDENTIFIABLE part IV of subchapter A of chapter 1 is predecessor) or a corresponding amount was TREATMENT FACILITY.—Subparagraph (B) of amended by striking the item relating to not included in gross income of the taxpayer section 169(d)(4) is amended to read as fol- section 29. (or a predecessor). For purposes of the pre- lows: (L) The table of sections for subpart D of ceding sentence, a ratable portion of each ‘‘(B) CERTAIN FACILITIES PLACED IN OPER- part IV of subchapter A of chapter 1 is transfer shall be treated as being from pre- ATION AFTER APRIL 11, 2005.—In the case of any amended by inserting after the item relating viously deducted or excluded amounts to the facility described in paragraph (1) solely by to section 45I the following new item: extent thereof. reason of paragraph (5), subparagraph (A) ‘‘Sec. 45J. Credit for producing fuel from a ‘‘(C) TRANSFERS OF QUALIFIED FUNDS.—If— shall be applied by substituting ‘April 11, nonconventional source.’’. ‘‘(i) any transfer permitted by this sub- 2005’ for ‘December 31, 1968’ each place it ap- (b) AMENDMENTS CONFORMING TO THE RE- section is made to any Fund to which this pears therein.’’. PEAL OF THE NATURAL GAS POLICY ACT OF section applies, and (c) TECHNICAL AMENDMENT.—Section 1978.— ‘‘(ii) such Fund is transferred thereafter, 169(d)(3) is amended by striking ‘‘Health, (1) IN GENERAL.—Section 29(c)(2)(A) (before any deduction under this subsection for tax- Education, and Welfare’’ and inserting redesignation under subsection (a)) is able years ending after the date that such ‘‘Health and Human Services’’. amended— Fund is transferred shall be allowed to the

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00127 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.062 H20PT1 H2280 CONGRESSIONAL RECORD — HOUSE April 20, 2005 transferor for the taxable year which in- ‘‘(I) after the close of the testing period such area is not also served by another util- cludes such date. and before the date of issuance of the issue, ity providing natural gas or electricity serv- ‘‘(D) SPECIAL RULES.— the utility owned by a governmental unit en- ices, as the case may be, and ‘‘(i) GAIN OR LOSS NOT RECOGNIZED ON ters into a contract to supply natural gas ‘‘(iii) any area recognized as the service TRANSFERS TO FUND.—No gain or loss shall be (other than for resale) for a business use at area of such utility under State or Federal recognized on any transfer described in para- a property within the service area of such law.’’. graph (1). utility, and (b) PRIVATE LOAN FINANCING TEST NOT TO ‘‘(ii) TRANSFERS OF APPRECIATED PROPERTY ‘‘(II) the utility did not supply natural gas APPLY TO PREPAYMENTS FOR NATURAL GAS.— TO FUND.—If appreciated property is trans- to such property during the testing period or Paragraph (2) of section 141(c) (providing ex- ferred in a transfer described in paragraph the ratable amount of natural gas to be sup- ceptions to the private loan financing test) is (1), the amount of the deduction shall not ex- plied under the contract is significantly amended by striking ‘‘or’’ at the end of sub- ceed the adjusted basis of such property. greater than the ratable amount of gas sup- paragraph (A), by striking the period at the ‘‘(3) NEW RULING AMOUNT REQUIRED.—Para- plied to such property during the testing pe- end of subparagraph (B) and inserting ‘‘, or’’, graph (1) shall not apply to any transfer un- riod, and by adding at the end the following new less the taxpayer requests from the Sec- then a contract shall not fail to be treated as subparagraph: retary a new schedule of ruling amounts in a qualified natural gas supply contract by ‘‘(C) is a qualified natural gas supply con- connection with such transfer. reason of supplying the additional natural tract (as defined in section 148(b)(4)).’’. ‘‘(4) NO BASIS IN QUALIFIED FUNDS.—Not- gas under the contract referred to in sub- (c) EXCEPTION FOR QUALIFIED ELECTRIC AND withstanding any other provision of law, the clause (I). NATURAL GAS SUPPLY CONTRACTS.—Section taxpayer’s basis in any Fund to which this ‘‘(ii) LOST CUSTOMERS.—The average under 141(d) is amended by adding at the end the section applies shall not be increased by rea- subparagraph (B)(i) shall not exceed the an- following new paragraph: son of any transfer permitted by this sub- nual amount of natural gas reasonably ex- ‘‘(7) EXCEPTION FOR QUALIFIED ELECTRIC AND section.’’. pected to be purchased (other than for re- NATURAL GAS SUPPLY CONTRACTS.—The term (2) NEW RULING AMOUNT TO TAKE INTO AC- sale) by persons who are located within the ‘nongovernmental output property’ shall not COUNT TOTAL COSTS.—Subparagraph (A) of service area of such utility and who, as of include any contract for the prepayment of section 468A(d)(2) (defining ruling amount) is the date of issuance of the issue, are cus- electricity or natural gas which is not in- amended to read as follows: tomers of such utility. vestment property under section 148(b)(2).’’. FFECTIVE ATE ‘‘(A) fund the total nuclear decommis- ‘‘(E) RULING REQUESTS.—The Secretary (d) E D .—The amendments sioning costs with respect to such power may increase the average under subpara- made by this section shall apply to obliga- plant over the estimated useful life of such graph (B)(i) for any period if the utility tions issued after the date of the enactment power plant, and’’. owned by the governmental unit establishes of this Act. (c) TECHNICAL AMENDMENTS.—Section to the satisfaction of the Secretary that, SEC. 1308. DETERMINATION OF SMALL REFINER 468A(e)(2) (relating to taxation of Fund) is based on objective evidence of growth in nat- EXCEPTION TO OIL DEPLETION DE- DUCTION. amended— ural gas consumption or population, such av- (a) IN GENERAL.—Paragraph (4) of section (1) by striking ‘‘rate set forth in subpara- erage would otherwise be insufficient for 613A(d) (relating to limitations on applica- graph (B)’’ in subparagraph (A) and inserting such period. tion of subsection (c)) is amended to read as ‘‘rate of 20 percent’’, ‘‘(F) ADJUSTMENT FOR NATURAL GAS OTHER- follows: (2) by striking subparagraph (B), and WISE ON HAND.— ‘‘(4) CERTAIN REFINERS EXCLUDED.—If the (3) by redesignating subparagraphs (C) and ‘‘(i) IN GENERAL.—The amount otherwise (D) as subparagraphs (B) and (C), respec- permitted to be acquired under the contract taxpayer or 1 or more related persons en- tively. for any period shall be reduced by— gages in the refining of crude oil, subsection (d) EFFECTIVE DATE.—The amendments ‘‘(I) the applicable share of natural gas (c) shall not apply to the taxpayer for a tax- made by this section shall apply to taxable held by the utility on the date of issuance of able year if the average daily refinery runs years beginning after December 31, 2005. the issue, and of the taxpayer and such persons for the tax- able year exceed 75,000 barrels. For purposes SEC. 1307. ARBITRAGE RULES NOT TO APPLY TO ‘‘(II) the natural gas (not taken into ac- PREPAYMENTS FOR NATURAL GAS. count under subclause (I)) which the utility of this paragraph, the average daily refinery runs for any taxable year shall be deter- (a) IN GENERAL.—Subsection (b) of section has a right to acquire during such period (de- 148 (relating to higher yielding investments) termined as of the date of issuance of the mined by dividing the aggregate refinery is amended by adding at the end the fol- issue). runs for the taxable year by the number of days in the taxable year.’’. lowing new paragraph: ‘‘(ii) APPLICABLE SHARE.—For purposes of (b) EFFECTIVE DATE.—The amendment ‘‘(4) SAFE HARBOR FOR PREPAID NATURAL the clause (i), the term ‘applicable share’ made by this section shall apply to taxable GAS.— means, with respect to any period, the nat- years ending after the date of the enactment ‘‘(A) IN GENERAL.—The term ‘investment- ural gas allocable to such period if the gas of this Act. type property’ does not include a prepay- were allocated ratably over the period to ment under a qualified natural gas supply which the prepayment relates. Subtitle B—Miscellaneous Energy Tax contract. ‘‘(G) INTENTIONAL ACTS.—Subparagraph (A) Incentives ‘‘(B) QUALIFIED NATURAL GAS SUPPLY CON- shall cease to apply to any issue if the util- SEC. 1311. CREDIT FOR RESIDENTIAL ENERGY TRACT.—For purposes of this paragraph, the ity owned by the governmental unit engages EFFICIENT PROPERTY. term ‘qualified natural gas supply contract’ in any intentional act to render the volume (a) IN GENERAL.—Subpart A of part IV of means any contract to acquire natural gas of natural gas acquired by such prepayment subchapter A of chapter 1 (relating to non- for resale by a utility owned by a govern- to be in excess of the sum of— refundable personal credits) is amended by mental unit if the amount of gas permitted ‘‘(i) the amount of natural gas needed inserting after section 25B the following new to be acquired under the contract by the (other than for resale) by customers of such section: utility during any year does not exceed the utility who are located within the service ‘‘SEC. 25C. RESIDENTIAL ENERGY EFFICIENT sum of— area of such utility, and PROPERTY. ‘‘(i) the annual average amount during the ‘‘(ii) the amount of natural gas used to ‘‘(a) ALLOWANCE OF CREDIT.—In the case of testing period of natural gas purchased transport such natural gas to the utility. an individual, there shall be allowed as a (other than for resale) by customers of such ‘‘(H) TESTING PERIOD.—For purposes of this credit against the tax imposed by this chap- utility who are located within the service paragraph, the term ‘testing period’ means, ter for the taxable year an amount equal to area of such utility, and with respect to an issue, the most recent 5 the sum of— ‘‘(ii) the amount of natural gas to be used calendar years ending before the date of ‘‘(1) 15 percent of the qualified solar water to transport the prepaid natural gas to the issuance of the issue. heating property expenditures made by the utility during such year. ‘‘(I) SERVICE AREA.—For purposes of this taxpayer during such year, ‘‘(C) NATURAL GAS USED TO GENERATE ELEC- paragraph, the service area of a utility ‘‘(2) 15 percent of the qualified photo- TRICITY.—Natural gas used to generate elec- owned by a governmental unit shall be com- voltaic property expenditures made by the tricity shall be taken into account in deter- prised of— taxpayer during such year, and mining the average under subparagraph ‘‘(i) any area throughout which such util- ‘‘(3) 15 percent of the qualified fuel cell (B)(i)— ity provided at all times during the testing property expenditures made by the taxpayer ‘‘(i) only if the electricity is generated by period— during such year. a utility owned by a governmental unit, and ‘‘(I) in the case of a natural gas utility, ‘‘(b) LIMITATIONS.— ‘‘(ii) only to the extent that the electricity natural gas transmission or distribution ‘‘(1) MAXIMUM CREDIT.— is sold (other than for resale) to customers of services, and ‘‘(A) IN GENERAL.—The credit allowed such utility who are located within the serv- ‘‘(II) in the case of an electric utility, elec- under subsection (a) shall not exceed— ice area of such utility. tricity distribution services, ‘‘(i) $2,000 for solar water heating property ‘‘(D) ADJUSTMENTS FOR CHANGES IN CUS- ‘‘(ii) any area within a county contiguous described in subsection (c)(1), TOMER BASE.— to the area described in clause (i) in which ‘‘(ii) $2,000 for photovoltaic property de- ‘‘(i) NEW BUSINESS CUSTOMERS.—If— retail customers of such utility are located if scribed in subsection (c)(2), and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00128 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.062 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2281 ‘‘(iii) $500 for each 0.5 kilowatt of capacity ‘‘(B) There shall be allowable, with respect ‘‘(32) to the extent provided in section of property described in subsection (c)(3). to such expenditures to each of such individ- 25C(e), in the case of amounts with respect to ‘‘(B) PRIOR EXPENDITURES BY TAXPAYER ON uals, a credit under subsection (a) for the which a credit has been allowed under sec- SAME RESIDENCE TAKEN INTO ACCOUNT.—In de- taxable year in which such calendar year tion 25C.’’. termining the amount of the credit allowed ends in an amount which bears the same (2) The table of sections for subpart A of to a taxpayer with respect to any dwelling ratio to the amount determined under sub- part IV of subchapter A of chapter 1 is unit under this section, the dollar amounts paragraph (A) as the amount of such expend- amended by inserting after the item relating under clauses (i) and (ii) of subparagraph (A) itures made by such individual during such to section 25B the following new item: with respect to each type of property de- calendar year bears to the aggregate of such ‘‘Sec. 25C. Residential energy efficient prop- scribed in such clauses shall be reduced by expenditures made by all of such individuals erty.’’. the credit allowed to the taxpayer under this during such calendar year. section with respect to such type of property ‘‘(C) Subparagraphs (A) and (B) shall be ap- (c) EFFECTIVE DATE.—The amendments for all preceding taxable years with respect plied separately with respect to expenditures made by this section shall apply to expendi- to such dwelling unit. described in paragraphs (1), (2), and (3) of tures made after the date of the enactment of this Act. ‘‘(2) PROPERTY STANDARDS.—No credit shall subsection (c). be allowed under this section for an item of ‘‘(4) TENANT-STOCKHOLDER IN COOPERATIVE SEC. 1312. CREDIT FOR BUSINESS INSTALLATION property unless— HOUSING CORPORATION.—In the case of an in- OF QUALIFIED FUEL CELLS. ‘‘(A) the original use of such property com- dividual who is a tenant-stockholder (as de- (a) IN GENERAL.—Section 48(a)(3)(A) (defin- mences with the taxpayer, fined in section 216) in a cooperative housing ing energy property) is amended by striking ‘‘(B) such property can be reasonably ex- corporation (as defined in such section), such ‘‘or’’ at the end of clause (i), by adding ‘‘or’’ pected to remain in use for at least 5 years, individual shall be treated as having made at the end of clause (ii), and by inserting ‘‘(C) such property is installed on or in the individual’s tenant-stockholder’s propor- after clause (ii) the following new clause: connection with a dwelling unit located in tionate share (as defined in section 216(b)(3)) ‘‘(iii) qualified fuel cell property,’’. the United States and used as a residence by of any expenditures of such corporation. (b) ENERGY PERCENTAGE.—Subparagraph the taxpayer, ‘‘(5) CONDOMINIUMS.— (A) of section 48(a)(2) (relating to energy per- ‘‘(D) in the case of solar water heating ‘‘(A) IN GENERAL.—In the case of an indi- centage) is amended to read as follows: property, such property is certified for per- vidual who is a member of a condominium ‘‘(A) IN GENERAL.—The energy percentage formance by the non-profit Solar Rating and management association with respect to a is— Certification Corporation or a comparable condominium which the individual owns, ‘‘(i) in the case of qualified fuel cell prop- entity endorsed by the government of the such individual shall be treated as having erty, 15 percent, and State in which such property is installed, made the individual’s proportionate share of ‘‘(ii) in the case of any other energy prop- and any expenditures of such association. erty, 10 percent.’’. ‘‘(E) in the case of fuel cell property, such ‘‘(B) CONDOMINIUM MANAGEMENT ASSOCIA- (c) QUALIFIED FUEL CELL PROPERTY.—Sec- property meets the performance and quality TION.—For purposes of this paragraph, the tion 48 (relating to energy credit) is amend- standards (if any) which have been pre- term ‘condominium management associa- ed— scribed by the Secretary by regulations tion’ means an organization which meets the (1) by redesignating subsection (b) as para- (after consultation with the Secretary of En- requirements of paragraph (1) of section graph (5) of subsection (a), ergy). 528(c) (other than subparagraph (E) thereof) (2) by striking ‘‘subsection (a)’’ in para- ‘‘(c) DEFINITIONS.—For purposes of this sec- with respect to a condominium project sub- graph (5) of subsection (a), as redesignated tion— stantially all of the units of which are used by paragraph (1), and inserting ‘‘this sub- ‘‘(1) QUALIFIED SOLAR WATER HEATING PROP- as residences. section’’, and ERTY EXPENDITURE.—The term ‘qualified ‘‘(6) ALLOCATION IN CERTAIN CASES.—If less (3) by adding at the end the following new solar water heating property expenditure’ than 80 percent of the use of an item is for subsection: means an expenditure for property which nonbusiness purposes, only that portion of ‘‘(b) QUALIFIED FUEL CELL PROPERTY.—For uses solar energy to heat water for use in a the expenditures for such item which is prop- purposes of subsection (a)(3)(A)(iii)— dwelling unit. erly allocable to use for nonbusiness pur- ‘‘(1) IN GENERAL.—The term ‘qualified fuel ‘‘(2) QUALIFIED PHOTOVOLTAIC PROPERTY EX- poses shall be taken into account. cell property’ means a fuel cell power plant PENDITURE.—The term ‘qualified photo- ‘‘(7) WHEN EXPENDITURE MADE; AMOUNT OF which— voltaic property expenditure’ means an ex- EXPENDITURE.— ‘‘(A) generates at least 0.5 kilowatt of elec- penditure for property which uses solar en- ‘‘(A) IN GENERAL.—Except as provided in tricity using an electrochemical process, and ergy to generate electricity for use in a subparagraph (B), an expenditure with re- ‘‘(B) has an electricity-only generation ef- dwelling unit and which is not described in spect to an item shall be treated as made ficiency greater than 30 percent. paragraph (1). when the original installation of the item is ‘‘(2) LIMITATION.—The energy credit with ‘‘(3) QUALIFIED FUEL CELL PROPERTY EX- completed. respect to any qualified fuel cell property PENDITURE.—The term ‘qualified fuel cell ‘‘(B) EXPENDITURES PART OF BUILDING CON- shall not exceed an amount equal to $500 for property expenditure’ means an expenditure STRUCTION.—In the case of an expenditure in each 0.5 kilowatt of capacity of such prop- for any qualified fuel cell property (as de- connection with the construction or recon- erty. fined in section 48(b)(1)). struction of a structure, such expenditure ‘‘(3) FUEL CELL POWER PLANT.—The term shall be treated as made when the original ‘‘(d) SPECIAL RULES.—For purposes of this ‘fuel cell power plant’ means an integrated use of the constructed or reconstructed section— system, comprised of a fuel cell stack assem- structure by the taxpayer begins. ‘‘(1) SOLAR PANELS.—No expenditure relat- bly and associated balance of plant compo- ‘‘(C) AMOUNT.—The amount of any expendi- ing to a solar panel or other property in- nents, which converts a fuel into electricity ture shall be the cost thereof. stalled as a roof (or portion thereof) shall using electrochemical means. ‘‘(8) PROPERTY FINANCED BY SUBSIDIZED EN- fail to be treated as property described in ‘‘(4) TERMINATION.—The term ‘qualified ERGY FINANCING.—For purposes of deter- paragraph (1) or (2) of subsection (c) solely fuel cell property’ shall not include any mining the amount of expenditures made by because it constitutes a structural compo- property placed in service after December 31, any individual with respect to any dwelling nent of the structure on which it is installed. 2007.’’. unit, there shall not be taken into account ‘‘(2) SWIMMING POOLS, ETC., USED AS STOR- (d) CONFORMING AMENDMENT.—Section expenditures which are made from subsidized AGE MEDIUM.—Expenditures which are prop- 48(a)(1) is amended by inserting ‘‘except as energy financing (as defined in section erly allocable to a swimming pool, hot tub, provided in subsection (b)(2),’’ before ‘‘the 48(a)(4)(C)). or any other energy storage medium which energy’’ the first place it appears. ‘‘(e) BASIS ADJUSTMENTS.—For purposes of (e) EFFECTIVE DATE.—The amendments has a function other than the function of this subtitle, if a credit is allowed under this made by this section shall apply to property such storage shall not be taken into account section for any expenditure with respect to placed in service after April 11, 2005, under for purposes of this section. any property, the increase in the basis of ‘‘(3) DOLLAR AMOUNTS IN CASE OF JOINT OC- such property which would (but for this sub- rules similar to the rules of section 48(m) of CUPANCY.—In the case of any dwelling unit section) result from such expenditure shall the Internal Revenue Code of 1986 (as in ef- which is jointly occupied and used during be reduced by the amount of the credit so al- fect on the day before the date of the enact- any calendar year as a residence by 2 or lowed. ment of the Revenue Reconciliation Act of more individuals, the following rules shall ‘‘(f) TERMINATION.—The credit allowed 1990). apply: under this section shall not apply to taxable SEC. 1313. REDUCED MOTOR FUEL EXCISE TAX ‘‘(A) The amount of the credit allowable years beginning after December 31, 2007.’’. ON CERTAIN MIXTURES OF DIESEL under subsection (a) by reason of expendi- (b) CONFORMING AMENDMENTS.— FUEL. tures made during such calendar year by any (1) Section 1016(a) is amended by striking (a) IN GENERAL.—Paragraph (2) of section of such individuals with respect to such ‘‘and’’ at the end of paragraph (30), by strik- 4081(a) is amended by adding at the end the dwelling unit shall be determined by treat- ing the period at the end of paragraph (31) following: ing all of such individuals as 1 taxpayer and inserting ‘‘, and’’, and by adding at the ‘‘(D) DIESEL-WATER FUEL EMULSION.—In the whose taxable year is such calendar year. end the following new paragraph: case of diesel-water fuel emulsion at least

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00129 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.062 H20PT1 H2282 CONGRESSIONAL RECORD — HOUSE April 20, 2005 16.9 percent of which is water and with re- (1), no deduction shall be allowed on account economy for a vehicle in the same inertia spect to which the emulsion additive is reg- of such retirement or abandonment and the weight class, and istered by a United States manufacturer amortization deduction under this sub- ‘‘(F) $3,000, if the city fuel economy of such with the Environmental Protection Agency section shall continue with respect to such vehicle is at least 250 percent of the 2000 pursuant to section 211 of the Clean Air Act payment. model year city fuel economy for a vehicle in (as in effect on March 31, 2003), subparagraph ‘‘(5) DELAY RENTAL PAYMENTS.—For pur- the same inertia weight class. (A)(iii) shall be applied by substituting ‘19.7 poses of this subsection, the term ‘delay ‘‘(2) CONSERVATION.—The credit amount de- cents’ for ‘24.3 cents’.’’. rental payment’ means an amount paid for termined under paragraph (1) with respect to (b) SPECIAL RULES FOR DIESEL-WATER FUEL the privilege of deferring development of an any vehicle shall be increased by— EMULSIONS.— oil or gas well under an oil or gas lease.’’. ‘‘(A) $250, if the lifetime fuel savings of (1) REFUNDS FOR TAX-PAID PURCHASES.— (b) EFFECTIVE DATE.—The amendments such vehicle is at least 1,500 gallons of motor Section 6427 is amended by redesignating made by this section shall apply to amounts fuel but less than 2,500 gallons of motor fuel, subsections (m) through (p) as subsections paid or incurred in taxable years beginning and (n) through (q), respectively, and by insert- after the date of the enactment of this Act. ‘‘(B) $500, if the lifetime fuel savings of ing after subsection (l) the following new SEC. 1315. AMORTIZATION OF GEOLOGICAL AND such vehicle is at least 2,500 gallons of motor subsection: GEOPHYSICAL EXPENDITURES. fuel. ‘‘(c) LIMITATION BASED ON AMOUNT OF ‘‘(m) DIESEL FUEL USED TO PRODUCE EMUL- (a) IN GENERAL.—Section 167 (relating to SION.— depreciation), as amended by section 1314 of TAX.—The credit allowed under subsection ‘‘(1) IN GENERAL.—Except as provided in this title, is amended by redesignating sub- (a) for the taxable year shall not exceed the excess of— subsection (k), if any diesel fuel on which tax section (i) as subsection (j) and by inserting ‘‘(1) the sum of the regular tax liability (as was imposed by section 4081 at the regular after subsection (h) the following new sub- defined in section 26(b)) plus the tax imposed tax rate is used by any person in producing section: by section 55, over an emulsion described in section 4081(a)(2)(D) ‘‘(i) AMORTIZATION OF GEOLOGICAL AND GEO- ‘‘(2) the sum of the credits allowable under which is sold or used in such person’s trade PHYSICAL EXPENDITURES.— subpart A and sections 27 and 30A for the or business, the Secretary shall pay (without ‘‘(1) IN GENERAL.—Any geological and geo- taxable year. interest) to such person an amount equal to physical expenses paid or incurred in connec- ‘‘(d) DEFINITIONS.—For purposes of this sec- the excess of the regular tax rate over the in- tion with the exploration for, or develop- centive tax rate with respect to such fuel. tion— ment of, oil or gas within the United States ‘‘(1) QUALIFIED ADVANCED LEAN BURN TECH- ‘‘(2) DEFINITIONS.—For purposes of para- (as defined in section 638) shall be allowed as graph (1)— NOLOGY MOTOR VEHICLE.—The term ‘qualified a deduction ratably over the 24-month period advanced lean burn technology motor vehi- ‘‘(A) REGULAR TAX RATE.—The term ‘reg- beginning on the date that such expense was ular tax rate’ means the aggregate rate of cle’ means a motor vehicle— paid or incurred. ‘‘(A) the original use of which commences tax imposed by section 4081 determined with- ‘‘(2) SPECIAL RULES.—For purposes of this out regard to section 4081(a)(2)(D). with the taxpayer, subsection, rules similar to the rules of para- ‘‘(B) powered by an internal combustion ‘‘(B) INCENTIVE TAX RATE.—The term ‘in- graphs (2), (3), and (4) of subsection (h) shall centive tax rate’ means the aggregate rate of engine that— apply.’’. ‘‘(i) is designed to operate primarily using tax imposed by section 4081 determined with (b) CONFORMING AMENDMENT.—Section regard to section 4081(a)(2)(D).’’. more air than is necessary for complete com- 263A(c)(3) is amended by inserting ‘‘167(h), bustion of the fuel, and (2) LATER SEPARATION OF FUEL.—Section 167(i),’’ after ‘‘under section’’. 4081 (relating to imposition of tax) is amend- ‘‘(ii) incorporates direct injection, (c) EFFECTIVE DATE.—The amendments ‘‘(C) that only uses diesel fuel (as defined ed by inserting after subsection (b) the fol- made by this section shall apply to amounts lowing new subsection: in section 4083(a)(3)), paid or incurred in taxable years beginning ‘‘(D) the city fuel economy of which is at ‘‘(c) LATER SEPARATION OF FUEL FROM DIE- after the date of the enactment of this Act. SEL-WATER FUEL EMULSION.—If any person least 125 percent of the 2000 model year city separates the taxable fuel from a diesel- SEC. 1316. ADVANCED LEAN BURN TECHNOLOGY fuel economy for a vehicle in the same iner- MOTOR VEHICLE CREDIT. water fuel emulsion on which tax was im- tia weight class, and (a) IN GENERAL.—Subpart B of part IV of posed under subsection (a) at a rate deter- ‘‘(E) that has received a certificate that subchapter A of chapter 1 (relating to other mined under subsection (a)(2)(D) (or with re- such vehicle meets or exceeds the Bin 8 Tier credits) is amended by adding at the end the spect to which a credit or payment was al- II emission level established in regulations following: lowed or made by reason of section 6427), prescribed by the Administrator of the Envi- such person shall be treated as the refiner of ‘‘SEC. 30B. ADVANCED LEAN BURN TECHNOLOGY ronmental Protection Agency under section such taxable fuel. The amount of tax im- MOTOR VEHICLE CREDIT. 202(i) of the Clean Air Act. posed on any removal of such fuel by such ‘‘(a) ALLOWANCE OF CREDIT.—There shall be ‘‘(2) LIFETIME FUEL SAVINGS.—The term person shall be reduced by the amount of tax allowed as a credit against the tax imposed ‘lifetime fuel savings’ means, with respect to imposed (and not credited or refunded) on by this chapter for the taxable year an a qualified advanced lean burn technology any prior removal or entry of such fuel.’’. amount equal to the sum of the credit motor vehicle, an amount equal to the excess (c) EFFECTIVE DATE.—The amendments amounts determined under subsection (b) (if any) of— made by this section shall take effect on with respect to each qualified advanced lean ‘‘(A) 120,000 divided by the 2000 model year January 1, 2006. burn technology motor vehicle placed in city fuel economy for the vehicle inertia SEC. 1314. AMORTIZATION OF DELAY RENTAL service by the taxpayer during the taxable weight class, over PAYMENTS. year. ‘‘(B) 120,000 divided by the city fuel econ- (a) IN GENERAL.—Section 167 (relating to ‘‘(b) CREDIT AMOUNT.—For purposes of sub- omy for such vehicle. depreciation) is amended by redesignating section (a)— ‘‘(3) 2000 MODEL YEAR CITY FUEL ECONOMY.— subsection (h) as subsection (i) and by insert- ‘‘(1) FUEL EFFICIENCY.—The credit amount The 2000 model year city fuel economy with ing after subsection (g) the following new with respect to any vehicle shall be— respect to a vehicle shall be determined in subsection: ‘‘(A) $500, if the city fuel economy of such accordance with the following tables: ‘‘(h) AMORTIZATION OF DELAY RENTAL PAY- vehicle is at least 125 percent but less than ‘‘(A) In the case of a passenger automobile: MENTS FOR DOMESTIC OIL AND GAS WELLS.— 150 percent of the 2000 model year city fuel ‘‘If vehicle inertia weight The 2000 model year city ‘‘(1) IN GENERAL.—Any delay rental pay- economy for a vehicle in the same inertia class is: fuel economy is: ment paid or incurred in connection with the weight class, 1,500 or 1,750 lbs ...... 43.7 development of oil or gas wells within the ‘‘(B) $1,000, if the city fuel economy of such mpg United States (as defined in section 638) shall vehicle is at least 150 percent but less than 2,000 lbs ...... 38.3 be allowed as a deduction ratably over the 175 percent of the 2000 model year city fuel mpg 24-month period beginning on the date that economy for a vehicle in the same inertia 2,250 lbs ...... 34.1 such payment was paid or incurred. weight class, mpg 2,500 lbs ...... 30.7 ‘‘(2) HALF-YEAR CONVENTION.—For purposes ‘‘(C) $1,500, if the city fuel economy of such of paragraph (1), any payment paid or in- vehicle is at least 175 percent but less than mpg 2,750 lbs ...... 27.9 curred during the taxable year shall be treat- 200 percent of the 2000 model year city fuel mpg ed as paid or incurred on the mid-point of economy for a vehicle in the same inertia 3,000 lbs ...... 25.6 such taxable year. weight class, mpg ‘‘(3) EXCLUSIVE METHOD.—Except as pro- ‘‘(D) $2,000, if the city fuel economy of such 3,500 lbs ...... 22.0 vided in this subsection, no depreciation or vehicle is at least 200 percent but less than mpg amortization deduction shall be allowed with 225 percent of the 2000 model year city fuel 4,000 lbs ...... 19.3 respect to such payments. economy for a vehicle in the same inertia mpg ‘‘(4) TREATMENT UPON ABANDONMENT.—If weight class, 4,500 lbs ...... 17.2 any property to which a delay rental pay- ‘‘(E) $2,500, if the city fuel economy of such mpg ment relates is retired or abandoned during vehicle is at least 225 percent but less than 5,000 lbs ...... 15.5 the 24-month period described in paragraph 250 percent of the 2000 model year city fuel mpg

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00130 Fmt 7634 Sfmt 0655 E:\CR\FM\A20AP7.062 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2283 ‘‘If vehicle inertia weight The 2000 model year city scribed in paragraph (3) or (4) of section 50(b) ‘‘SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS class is: fuel economy is: and which is not subject to a lease, the per- TO EXISTING HOMES. 5,500 lbs ...... 14.1 son who sold such vehicle to the person or ‘‘(a) ALLOWANCE OF CREDIT.—In the case of mpg entity using such vehicle shall be treated as an individual, there shall be allowed as a 6,000 lbs ...... 12.9 the taxpayer that placed such vehicle in credit against the tax imposed by this chap- mpg service, but only if such person clearly dis- ter for the taxable year an amount equal to 6,500 lbs ...... 11.9 closes to such person or entity in a docu- 20 percent of the amount paid or incurred by mpg ment the amount of any credit allowable the taxpayer for qualified energy efficiency 7,000 or 8,500 lbs ...... 11.1 under subsection (a) with respect to such ve- improvements installed during such taxable mpg. hicle (determined without regard to sub- year. ‘‘(B) In the case of a light truck: ‘‘(b) LIMITATIONS.— section (c)). ‘‘If vehicle inertia weight The 2000 model year city ‘‘(1) MAXIMUM CREDIT.—The credit allowed ‘‘(4) PROPERTY USED OUTSIDE UNITED class is: fuel economy is: by this section with respect to a dwelling STATES, ETC., NOT QUALIFIED.—No credit shall 1,500 or 1,750 lbs ...... 37.6 unit shall not exceed $2,000. be allowable under subsection (a) with re- mpg ‘‘(2) PRIOR CREDIT AMOUNTS FOR TAXPAYER spect to any property referred to in section 2,000 lbs ...... 33.7 ON SAME DWELLING TAKEN INTO ACCOUNT.—If a mpg 50(b)(1) or with respect to the portion of the credit was allowed to the taxpayer under 2,250 lbs ...... 30.6 cost of any property taken into account subsection (a) with respect to a dwelling unit mpg under section 179. in 1 or more prior taxable years, the amount 2,500 lbs ...... 28.0 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No of the credit otherwise allowable for the tax- mpg credit shall be allowed under subsection (a) able year with respect to that dwelling unit 2,750 lbs ...... 25.9 for any vehicle if the taxpayer elects not to shall be reduced by the sum of the credits al- mpg have this section apply to such vehicle. lowed under subsection (a) to the taxpayer 3,000 lbs ...... 24.1 ‘‘(6) INTERACTION WITH AIR QUALITY AND with respect to the dwelling unit for all prior mpg MOTOR VEHICLE SAFETY STANDARDS.—Unless taxable years. 3,500 lbs ...... 21.3 otherwise provided in this section, a motor ‘‘(c) QUALIFIED ENERGY EFFICIENCY IM- mpg vehicle shall not be considered eligible for a PROVEMENTS.—For purposes of this section, 4,000 lbs ...... 19.0 credit under this section unless such vehicle the term ‘qualified energy efficiency im- mpg is in compliance with— provements’ means any energy efficient 4,500 lbs ...... 17.3 ‘‘(A) the applicable provisions of the Clean building envelope component which meets mpg Air Act for the applicable make and model the prescriptive criteria for such component 5,000 lbs ...... 15.8 year of the vehicle (or applicable air quality established by the 2000 International Energy mpg provisions of State law in the case of a State 5,500 lbs ...... 14.6 Conservation Code, as such Code (including which has adopted such provision under a mpg supplements) is in effect on the date of the 6,000 lbs ...... 13.6 waiver under section 209(b) of the Clean Air enactment of the Enhanced Energy Infra- mpg Act), and structure and Technology Tax Act of 2005 6,500 lbs ...... 12.8 ‘‘(B) the motor vehicle safety provisions of (or, in the case of a metal roof with appro- mpg sections 30101 through 30169 of title 49, priate pigmented coatings which meet the 7,000 or 8,500 lbs ...... 12.0 United States Code. Energy Star program requirements), if— mpg. ‘‘(g) REGULATIONS.— ‘‘(1) such component is installed in or on a ‘‘(1) IN GENERAL.—The Secretary shall pro- dwelling unit located in the United States ‘‘(4) MOTOR VEHICLE.—The term ‘motor ve- mulgate such regulations as necessary to and owned and used by the taxpayer as the hicle’ has the meaning given such term by carry out this section, including regulations taxpayer’s principal residence (within the section 30(c)(2). to prevent the avoidance of the purposes of meaning of section 121), ‘‘(5) CITY FUEL ECONOMY.—City fuel econ- this section through disposal of any motor ‘‘(2) the original use of such component omy with respect to any vehicle shall be vehicle or leasing of any motor vehicle for a commences with the taxpayer, and measured in accordance with testing and cal- lease period of less than the economic life of ‘‘(3) such component reasonably can be ex- culation procedures established by the Ad- such vehicle. pected to remain in use for at least 5 years. ministrator of the Environmental Protection ‘‘(2) DETERMINATION OF MOTOR VEHICLE ELI- If the aggregate cost of such components Agency by regulations in effect on April 11, GIBILITY.—The Secretary, in coordination with respect to any dwelling unit exceeds 2005. with the Secretary of Transportation and $1,000, such components shall be treated as ‘‘(6) OTHER TERMS.—The terms ‘passenger the Administrator of the Environmental qualified energy efficiency improvements automobile’, ‘light truck’, and ‘manufac- Protection Agency, shall prescribe such reg- only if such components are also certified in turer’ shall have the meanings given such ulations as necessary to determine whether a accordance with subsection (d) as meeting terms in regulations prescribed by the Ad- motor vehicle meets the requirements to be such prescriptive criteria. ministrator of the Environmental Protection ‘‘(d) CERTIFICATION.—The certification de- eligible for a credit under this section. Agency for purposes of the administration of scribed in subsection (c) shall be— ‘‘(h) TERMINATION.—This section shall not title II of the Clean Air Act (42 U.S.C. 7521 et ‘‘(1) determined on the basis of the tech- apply to any property placed in service after seq.). nical specifications or applicable ratings (in- December 31, 2007.’’. ‘‘(e) CARRYFORWARD ALLOWED.— cluding product labeling requirements) for (b) CONFORMING AMENDMENTS.— ‘‘(1) IN GENERAL.—If the credit amount al- the measurement of energy efficiency (based (1) Section 1016(a), as amended by section lowable under subsection (a) for a taxable upon energy use or building envelope compo- 1311 of this title, is amended by striking year exceeds the amount of the limitation nent performance) for the energy efficient ‘‘and’’ at the end of paragraph (31), by strik- under subsection (c) for such taxable year building envelope component, ing the period at the end of paragraph (32) (referred to as the ‘unused credit year’ in ‘‘(2) provided by a local building regulatory and inserting ‘‘, and’’, and by adding at the this paragraph), such excess shall be allowed authority, a utility, a manufactured home end the following: as a credit carryforward for each of the 20 production inspection primary inspection ‘‘(33) to the extent provided in section taxable years following the unused credit agency (IPIA), or an accredited home energy 30B(f)(1).’’. year. rating system provider who is accredited by (2) Section 6501(m) is amended by inserting ‘‘(2) RULES.—Rules similar to the rules of or otherwise authorized to use approved en- ‘‘30B(f)(6),’’ after ‘‘30(d)(4),’’. section 39 shall apply with respect to the ergy performance measurement methods by (3) The table of sections for subpart B of credit carryforward under paragraph (1). the Residential Energy Services Network part IV of subchapter A of chapter 1 is ‘‘(f) SPECIAL RULES.—For purposes of this (RESNET), and amended by inserting after the item relating section— ‘‘(3) made in writing in a manner which to section 30A the following: ‘‘(1) REDUCTION IN BASIS.—The basis of any specifies in readily verifiable fashion the en- property for which a credit is allowable ‘‘Sec. 30B. Advanced lean burn technology ergy efficient building envelope components under subsection (a) shall be reduced by the motor vehicle credit.’’. installed and their respective energy effi- amount of such credit (determined without (c) EFFECTIVE DATE.—The amendments ciency levels. regard to subsection (c)). made by this section shall apply to property ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For ‘‘(2) NO DOUBLE BENEFIT.—The amount of placed in service after the date of the enact- purposes of this section— any deduction or credit allowable under this ment of this Act in taxable years ending ‘‘(1) BUILDING ENVELOPE COMPONENT.—The chapter (other than the credit allowable after such date. term ‘building envelope component’ means— under subsection (a)), with respect to any ve- SEC. 1317. CREDIT FOR ENERGY EFFICIENCY IM- ‘‘(A) any insulation material or system hicle shall be reduced by the amount of cred- PROVEMENTS TO EXISTING HOMES. which is specifically and primarily designed it allowed under subsection (a) (determined (a) IN GENERAL.—Subpart A of part IV of to reduce the heat loss or gain of a dwelling without regard to subsection (c)) for such ve- subchapter A of chapter 1 (relating to non- unit when installed in or on such dwelling hicle for the taxable year. refundable personal credits), as amended by unit, ‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI- section 1311, is amended by inserting after ‘‘(B) exterior windows (including sky- TY.—In the case of a vehicle whose use is de- section 25C the following new section: lights),

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00131 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.063 H20PT1 H2284 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(C) exterior doors, and (1) Section 23(b)(4)(B) is amended by insert- section), or would prevent the construction ‘‘(D) any metal roof installed on a dwelling ing ‘‘and sections 25C and 25D’’ after ‘‘this and operation of natural gas facilities au- unit, but only if such roof has appropriate section’’. thorized by the certificate of public conven- pigmented coatings which are specifically (2) Section 24(b)(3)(B) is amended by strik- ience and necessity, the permit, license, con- and primarily designed to reduce the heat ing ‘‘and 25B’’ and inserting ‘‘, 25B, 25C, and currence, or approval that is the subject of gain of such dwelling unit. 25D’’. the order, action, or failure to act shall be ‘‘(2) MANUFACTURED HOMES INCLUDED.—The (3) Section 25(e)(1)(C) is amended by insert- deemed to have been issued subject to any term ‘dwelling unit’ includes a manufactured ing ‘‘25C, and 25D’’ after ‘‘25B,’’. conditions set forth in the reviewed order or home which conforms to Federal Manufac- (4) Section 25B(g)(2) is amended by striking action that the Court finds to be consistent tured Home Construction and Safety Stand- ‘‘section 23’’ and inserting ‘‘sections 23, 25C, with the public convenience and necessity. ards (section 3280 of title 24, Code of Federal and 25D’’. ‘‘(B) For purposes of paragraph (1)(B), the Regulations). (5) Section 26(a)(1) is amended by striking failure of an agency or officer to issue any ‘‘(3) APPLICATION OF RULES.—Rules similar ‘‘and 25B’’ and inserting ‘‘25B, 25C, and 25D’’. such permit, license, concurrence, or ap- to the rules under paragraphs (3), (4), and (5) (6) Section 904(i) is amended by striking proval within the later of 1 year after the of section 25C(d) shall apply. ‘‘and 25B’’ and inserting ‘‘25B, 25C, and 25D’’. date of filing of an application for the per- ‘‘(f) BASIS ADJUSTMENT.—For purposes of (7) Section 1400C(d) is amended by striking mit, license, concurrence, or approval or 60 this subtitle, if a credit is allowed under this ‘‘and 25B’’ and inserting ‘‘25B, 25C, and 25D’’. days after the date of issuance of the certifi- section for any expenditure with respect to (c) EFFECTIVE DATE.—The amendments cate of public convenience and necessity any property, the increase in the basis of made by this section shall apply to taxable under this section, shall be considered to be such property which would (but for this sub- years beginning after December 31, 2005. unreasonable delay unless the Court, for section) result from such expenditure shall SEC. 1322. CERTAIN BUSINESS ENERGY CREDITS good cause shown, determines otherwise. be reduced by the amount of the credit so al- ALLOWED AGAINST REGULAR AND MINIMUM TAXES. ‘‘(C) The Court shall set any action lowed. brought under paragraph (1) for expedited (a) IN GENERAL.—Subparagraph (B) of sec- ‘‘(g) APPLICATION OF SECTION.—This section consideration.’’. shall apply to qualified energy efficiency im- tion 38(c)(4) (relating to specified credits) is provements installed after the date of the amended by redesignating clause (ii) as SEC. 1443. ATTAINMENT DATES FOR DOWNWIND enactment of the Enhanced Energy Infra- clause (iv) and by striking clause (i) and in- OZONE NONATTAINMENT AREAS. structure and Technology Tax Act of 2005, serting the following new clauses: Section 181 of the Clean Air Act (42 and before January 1, 2008.’’. ‘‘(i) the credits determined under sections U.S.C.7511) is amended by adding the fol- (b) CONFORMING AMENDMENTS.— 40, 45H, and 45I, lowing new subsection at the end thereof: ‘‘(ii) so much of the credit determined (1) Subsection (a) of section 1016, as amend- ‘‘(d) EXTENDED ATTAINMENT DATE FOR CER- under section 46 as is attributable to section ed by section 1316 of this title, is amended by TAIN DOWNWIND AREAS.— 48(a)(3)(A)(iii), striking ‘‘and’’ at the end of paragraph (32), ‘‘(1) DEFINITIONS.—(A) The term ‘upwind by striking the period at the end of para- ‘‘(iii) for taxable years beginning after De- area’ means an area that— graph (33) and inserting ‘‘, and’’, and by add- cember 31, 2005, and before January 1, 2008, ‘‘(i) significantly contributes to nonattain- ing at the end the following new paragraph: the credit determined under section 43, and’’. ment in another area, hereinafter referred to (b) EFFECTIVE DATES.— ‘‘(34) to the extent provided in section as a ‘downwind area’; and (1) IN GENERAL.—Except as provided by 25D(f), in the case of amounts with respect to ‘‘(ii) is either— paragraph (2), the amendment made by sub- which a credit has been allowed under sec- ‘‘(I) a nonattainment area with a later at- section (a) shall apply to credits determined tion 25D.’’. tainment date than the downwind area, or under the Internal Revenue Code of 1986 for (2) The table of sections for subpart A of ‘‘(II) an area in another State that the Ad- taxable years beginning after December 31, part IV of subchapter A of chapter 1, as ministrator has found to be significantly 2005. amended by section 1311, is amended by in- contributing to nonattainment in the down- (2) FUEL CELLS.—Clause (ii) of section serting after the item relating to section 25C wind area in violation of section 110(a)(2)(D) 38(c)(4)(B) of the Internal Revenue Code of the following new item: and for which the Administrator has estab- 1986, as amended by subsection (a) of this lished requirements through notice and com- ‘‘Sec. 25D. Energy efficiency improvements section, shall apply to credits determined ment rulemaking to eliminate the emissions to existing homes.’’. under the Internal Revenue Code of 1986 for causing such significant contribution. (c) EFFECTIVE DATE.—The amendments taxable years ending after April 11, 2005. ‘‘(B) The term ‘current classification’ made by this section shall apply to improve- TITLE XIV—MISCELLANEOUS means the classification of a downwind area ments installed after the date of the enact- Subtitle C—Other Provisions under this section at the time of the deter- ment of this Act in taxable years ending mination under paragraph (2). after such date. SEC. 1441. CONTINUATION OF TRANSMISSION SE- CURITY ORDER. ‘‘(2) EXTENSION.—If the Administrator— Subtitle C—Alternative Minimum Tax Relief Department of Energy Order No. 202–03–2, ‘‘(A) determines that any area is a down- SEC. 1321. NEW NONREFUNDABLE PERSONAL issued by the Secretary of Energy on August wind area with respect to a particular na- CREDITS ALLOWED AGAINST REG- 28, 2003, shall remain in effect unless re- tional ambient air quality standard for ULAR AND MINIMUM TAXES. scinded by Federal statute. ozone; and (a) IN GENERAL.— SEC. 1442. REVIEW OF AGENCY DETERMINA- ‘‘(B) approves a plan revision for such area (1) SECTION 25C.—Section 25C(b), as added TIONS. as provided in paragraph (3) prior to a reclas- by section 1311 of this title, is amended by Section 7 of the Natural Gas Act (15 U.S.C. sification under subsection (b)(2)(A), adding at the end the following new para- 717f) is amended by adding at the end the fol- the Administrator, in lieu of such reclassi- graph: lowing: fication, shall extend the attainment date ‘‘(3) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(i)(1) The United States Court of Appeals for such downwind area for such standard in The credit allowed under subsection (a) for for the District of Columbia Circuit shall accordance with paragraph (5). the taxable year shall not exceed the excess have original and exclusive jurisdiction over ‘‘(3) REQUIRED APPROVAL.—In order to ex- of— any civil action— tend the attainment date for a downwind ‘‘(A) the sum of the regular tax liability ‘‘(A) for review of any order or action of area under this subsection, the Adminis- (as defined in section 26(b)) plus the tax im- any Federal or State administrative agency trator must approve a revision of the appli- posed by section 55, over or officer to issue, condition, or deny any cable implementation plan for the downwind ‘‘(B) the sum of the credits allowable under permit, license, concurrence, or approval area for such standard that— this subpart (other than this section) and issued under authority of any Federal law, ‘‘(A) complies with all requirements of this section 27 for the taxable year.’’. other than the Coastal Zone Management Act applicable under the current classifica- (2) SECTION 25D.—Section 25D(b), as added Act of 1972 (16 U.S.C. 1451 et seq.), required tion of the downwind area, including any re- by section 1317 of this title, is amended by for the construction of a natural gas pipeline quirements applicable to the area under sec- adding at the end the following new para- for which a certificate of public convenience tion 172(c) for such standard; and graph: and necessity is issued by the Commission ‘‘(B) includes any additional measures ‘‘(3) LIMITATION BASED ON AMOUNT OF TAX.— under this section; needed to demonstrate attainment by the ex- The credit allowed under subsection (a) for ‘‘(B) alleging unreasonable delay by any tended attainment date provided under this the taxable year shall not exceed the excess Federal or State administrative agency or subsection. of— officer in entering an order or taking other ‘‘(4) PRIOR RECLASSIFICATION DETERMINA- ‘‘(A) the sum of the regular tax liability action described in subparagraph (A); or TION.—If, no more than 18 months prior to (as defined in section 26(b)) plus the tax im- ‘‘(C) challenging any decision made or ac- the date of enactment of this subsection, the posed by section 55, over tion taken under this subsection. Administrator made a reclassification deter- ‘‘(B) the sum of the credits allowable under ‘‘(2)(A) If the Court finds that the order, mination under subsection (b)(2)(A) for any this subpart (other than this section) and action, or failure to act is not consistent downwind area, and the Administrator ap- section 27 for the taxable year.’’. with the public convenience and necessity proves the plan revision referred to in para- (b) CONFORMING AMENDMENTS.— (as determined by the Commission under this graph (3) for such area within 12 months

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00132 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.063 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2285 after the date of enactment of this sub- studies), and shall include a description of (A) how the United States and Israel have section, the reclassification shall be with- the weight of the scientific evidence con- cooperated on energy research and develop- drawn and the attainment date extended in cerning such risks.’’. ment activities under the Agreement; accordance with paragraph (5) upon such ap- SEC. 1448. OXYGEN-FUEL. (B) projects initiated pursuant to the proval. The Administrator shall also with- (a) PROGRAM.—The Secretary of Energy Agreement; and draw a reclassification determination under shall establish a program on oxygen-fuel sys- (C) plans for future cooperation and joint subsection (b)(2)(A) made after the date of tems. If feasible, the program shall include projects under the Agreement. enactment of this subsection and extend the renovation of at least one existing large unit (2) The report shall be submitted no later attainment date in accordance with para- and one existing small unit, and construc- than three months after the date of enact- graph (5) if the Administrator approves the tion of one new large unit and one new small ment of this Act. plan revision referred to in paragraph (3) unit. Cost sharing shall not be required. (c) SENSE OF CONGRESS.—It is the sense of within 12 months of the date the reclassifica- (b) AUTHORIZATION OF APPROPRIATIONS.— the Congress that energy cooperation be- tion determination under subsection There are authorized to be appropriated to tween the Governments of the United States (b)(2)(A) is issued. In such instances the ‘cur- the Secretary for carrying out this section— and Israel is mutually beneficial in the de- rent classification’ used for evaluating the (1) $100,000,000 for fiscal year 2006; velopment of energy technology. revision of the applicable implementation (2) $100,000,000 for fiscal year 2007; and SEC. 1451. CARBON-BASED FUEL CELL DEVELOP- plan under paragraph (3) shall be the classi- (3) $100,000,000 for fiscal year 2008. MENT. fication of the downwind area under this sec- (c) DEFINITIONS.—For purposes of this sec- (a) GRANT AUTHORITY.—The Secretary of tion immediately prior to such reclassifica- tion— Energy is authorized to make a single grant tion. (1) the term ‘‘large unit’’ means a unit to a qualified institution to design and fab- ‘‘(5) EXTENDED DATE.—The attainment date with a generating capacity of 100 megawatts ricate a 5-kilowatt prototype coal-based fuel extended under this subsection shall provide or more; cell with the following performance objec- for attainment of such national ambient air (2) the term ‘‘oxygen-fuel systems’’ means tives: quality standard for ozone in the downwind systems that utilize fuel efficiency benefits (1) A current density of 600 milliamps per area as expeditiously as practicable but no of oil, gas, coal, and biomass combustion square centimeter at a cell voltage of 0.8 later than the date on which the last reduc- using substantially pure oxygen, with high volts. tions in pollution transport necessary for at- flame temperatures and the exclusion of air (2) An operating temperature range not to tainment in the downwind area are required from the boiler, in industrial or electric util- exceed 900 degrees celsius. to be achieved by the upwind area or areas.’’. ity steam generating units; and (b) QUALIFIED INSTITUTION.—For the pur- SEC. 1444. ENERGY PRODUCTION INCENTIVES. (3) the term ‘‘small unit’’ means a unit poses of subsection (a), a qualified institu- (a) IN GENERAL.—A State may provide to with a generating capacity in the 10–50 tion is a research-intensive institution of any entity— megawatt range. higher education with demonstrated exper- tise in the development of carbon-based fuel (1) a credit against any tax or fee owed to SEC. 1449. PETROCHEMICAL AND OIL REFINERY the State under a State law, or FACILITY HEALTH ASSESSMENT. cells allowing the direct use of high sulfur content coal as fuel, and which has produced (2) any other tax incentive, (a) ESTABLISHMENT.—The Secretary of En- determined by the State to be appropriate, ergy shall conduct a study of direct and sig- a laboratory-scale carbon-based fuel cell in the amount calculated under and in ac- nificant health impacts to persons resulting with a proven current density of 100 cordance with a formula determined by the from living in proximity to petrochemical milliamps per square centimeter at a voltage State, for production described in subsection and oil refinery facilities. The Secretary of 0.6 volts. (c) AUTHORIZATION OF APPROPRIATIONS.— (b) in the State by the entity that receives shall consult with the Director of the Na- There are authorized to be appropriated to such credit or such incentive. tional Cancer Institute and other Federal the Secretary of Energy for carrying out this (b) ELIGIBLE ENTITIES.—Subsection (a) Government bodies with expertise in the section $850,000 for fiscal year 2006. shall apply with respect to the production in field it deems appropriate in the design of the State of— such study. The study shall be conducted ac- TITLE XV—ETHANOL AND MOTOR FUELS (1) electricity from coal mined in the State cording to sound and objective scientific Subtitle A—General Provisions and used in a facility, if such production practices and present the weight of the sci- SEC. 1501. RENEWABLE CONTENT OF MOTOR VE- meets all applicable Federal and State laws entific evidence. The Secretary shall obtain HICLE FUEL. and if such facility uses scrubbers or other scientific peer review of the draft study. (a) IN GENERAL.—Section 211 of the Clean forms of clean coal technology, (b) REPORT TO CONGRESS.—The Secretary Air Act (42 U.S.C. 7545) is amended— (2) electricity from a renewable source shall transmit the results of the study to (1) by redesignating subsection (o) as sub- such as wind, solar, or biomass, or Congress within 6 months of the enactment section (q); and (3) ethanol. of this section. (2) by inserting after subsection (n) the fol- (c) EFFECT ON INTERSTATE COMMERCE.—Any (c) AUTHORIZATION OF APPROPRIATIONS.— lowing: action taken by a State in accordance with There are authorized to be appropriated to ‘‘(o) RENEWABLE FUEL PROGRAM.— this section with respect to a tax or fee pay- the Secretary for activities under this sec- ‘‘(1) DEFINITIONS.—In this section: able, or incentive applicable, for any period tion such sums as are necessary for the com- ‘‘(A) ETHANOL.—(i) The term ‘cellulosic beginning after the date of the enactment of pletion of the study. biomass ethanol’ means ethanol derived this Act shall— SEC. 1450. UNITED STATES-ISRAEL COOPERA- from any lignocellulosic or hemicellulosic (1) be considered to be a reasonable regula- TION. matter that is available on a renewable or tion of commerce; and (a) FINDINGS.—The Congress finds that— recurring basis, including— (2) not be considered to impose an undue (1) on February 1, 1996, United States Sec- ‘‘(I) dedicated energy crops and trees; burden on interstate commerce or to other- retary of Energy Hazel R. O’Leary and ‘‘(II) wood and wood residues; wise impair, restrain, or discriminate, Israeli Minister of Energy and Infrastructure ‘‘(III) plants; against interstate commerce. Gonen Segev signed the Agreement between ‘‘(IV) grasses; SEC. 1446. REGULATION OF CERTAIN OIL USED IN the Department of Energy of the United ‘‘(V) agricultural residues; and TRANSFORMERS. States of America and the Ministry of En- ‘‘(VI) fibers. Notwithstanding any other provision of ergy and Infrastructure of Israel Concerning ‘‘(ii) The term ‘waste derived ethanol’ law, or rule promulgated by the Environ- Energy Cooperation, to establish a frame- means ethanol derived from— mental Protection Agency, vegetable oil work for collaboration between the United ‘‘(I) animal wastes, including poultry fats made from soybeans and used in electric States and Israel in energy research and de- and poultry wastes, and other waste mate- transformers as thermal insulation shall not velopment activities; rials; or be regulated as an oil as defined under sec- (2) the Agreement entered into force in ‘‘(II) municipal solid waste. tion 2(a)(1)(A) of the Edible Oil Regulatory February 2000; ‘‘(B) RENEWABLE FUEL.— Reform Act (33 U.S.C. 2720(a)(1)(A)). (3) in February 2005, the Agreement was ‘‘(i) IN GENERAL.—The term ‘renewable SEC. 1447. RISK ASSESSMENTS. automatically renewed for one additional 5- fuel’ means motor vehicle fuel that— Subtitle B of title XXX of the Energy Pol- year period pursuant to Article X of the ‘‘(I)(aa) is produced from grain, starch, oil- icy Act of 1992 is amended by adding at the Agreement; and seeds, or other biomass; or end the following new section: (4) under the Agreement, the United States ‘‘(bb) is natural gas produced from a biogas ‘‘SEC. 3022. RISK ASSESSMENT. and Israel may cooperate in energy research source, including a landfill, sewage waste ‘‘Federal agencies conducting assessments and development in a variety of alternative treatment plant, feedlot, or other place of risks to human health and the environ- and advanced energy sectors. where decaying organic material is found; ment from energy technology, production, (b) REPORT TO CONGRESS.—(1) The Sec- and transport, transmission, distribution, stor- retary of Energy shall report to the Com- ‘‘(II) is used to replace or reduce the quan- age, use, or conservation activities shall use mittee on Energy and Commerce of the tity of fossil fuel present in a fuel mixture sound and objective scientific practices in House of Representatives and the Committee used to operate a motor vehicle. assessing such risks, shall consider the best on Energy and Natural Resources of the Sen- ‘‘(ii) INCLUSION.—The term ‘renewable fuel’ available science (including peer reviewed ate on— includes cellulosic biomass ethanol, waste

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00133 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.063 H20PT1 H2286 CONGRESSIONAL RECORD — HOUSE April 20, 2005 derived ethanol, and biodiesel (as defined in of each of calendar years 2005 through 2011, generate or purchase sufficient credits to section 312(f) of the Energy Policy Act of 1992 the Administrator of the Energy Information meet the requirements under paragraph (2) (42 U.S.C. 13220(f)) and any blending compo- Administration shall provide to the Adminis- to carry forward a renewable fuel deficit pro- nents derived from renewable fuel (provided trator of the Environmental Protection vided that, in the calendar year following that only the renewable fuel portion of any Agency an estimate of the volumes of gaso- the year in which the renewable fuel deficit such blending component shall be considered line that will be sold or introduced into com- is created, such person shall achieve compli- part of the applicable volume under the re- merce in the United States during the fol- ance with the renewable fuel requirement newable fuel program established by this lowing calendar year. under paragraph (2), and shall generate or subsection). ‘‘(B) DETERMINATION OF APPLICABLE PER- purchase additional renewable fuel credits to ‘‘(C) SMALL REFINERY.—The term ‘small re- CENTAGES.— offset the renewable fuel deficit of the pre- finery’ means a refinery for which average ‘‘(i) IN GENERAL.—Not later than November vious year. aggregate daily crude oil throughput for the 30 of each of the calendar years 2005 through ‘‘(7) SEASONAL VARIATIONS IN RENEWABLE calendar year (as determined by dividing the 2011, based on the estimate provided under FUEL USE.— aggregate throughput for the calendar year subparagraph (A), the Administrator shall ‘‘(A) STUDY.—For each of the calendar by the number of days in the calendar year) determine and publish in the Federal Reg- years 2005 through 2012, the Administrator of does not exceed 75,000 barrels. ister, with respect to the following calendar the Energy Information Administration ‘‘(2) RENEWABLE FUEL PROGRAM.— year, the renewable fuel obligation that en- shall conduct a study of renewable fuels ‘‘(A) IN GENERAL.—Not later than 1 year sures that the requirements of paragraph (2) after the enactment of this subsection, the are met. blending to determine whether there are ex- Administrator shall promulgate regulations ‘‘(ii) REQUIRED ELEMENTS.—The renewable cessive seasonal variations in the use of re- ensuring that motor vehicle fuel sold or dis- fuel obligation determined for a calendar newable fuels. pensed to consumers in the contiguous year under clause (i) shall— ‘‘(B) REGULATION OF EXCESSIVE SEASONAL United States, on an annual average basis, ‘‘(I) be applicable to refiners, blenders, and VARIATIONS.—If, for any calendar year, the contains the applicable volume of renewable importers, as appropriate; Administrator of the Energy Information fuel as specified in subparagraph (B). Regard- ‘‘(II) be expressed in terms of a volume per- Administration, based on the study under less of the date of promulgation, such regula- centage of gasoline sold or introduced into subparagraph (A), makes the determinations tions shall contain compliance provisions for commerce; and specified in subparagraph (C), the Adminis- refiners, blenders, and importers, as appro- ‘‘(III) subject to subparagraph (C)(i), con- trator shall promulgate regulations to en- priate, to ensure that the requirements of sist of a single applicable percentage that sure that 35 percent or more of the quantity this section are met, but shall not restrict applies to all categories of persons specified of renewable fuels necessary to meet the re- where renewable fuel can be used, or impose in subclause (I). quirement of paragraph (2) is used during any per-gallon obligation for the use of re- ‘‘(C) ADJUSTMENTS.—In determining the each of the periods specified in subparagraph newable fuel. If the Administrator does not applicable percentage for a calendar year, (D) of each subsequent calendar year. promulgate such regulations, the applicable the Administrator shall make adjustments— ‘‘(C) DETERMINATIONS.—The determina- percentage referred to in paragraph (4), on a ‘‘(i) to prevent the imposition of redundant tions referred to in subparagraph (B) are volume percentage of gasoline basis, shall be obligations to any person specified in sub- that— 2.2 in 2005. paragraph (B)(ii)(I); and ‘‘(i) less than 35 percent of the quantity of ‘‘(B) APPLICABLE VOLUME.— ‘‘(ii) to account for the use of renewable renewable fuels necessary to meet the re- ‘‘(i) CALENDAR YEARS 2005 THROUGH 2012.— fuel during the previous calendar year by quirement of paragraph (2) has been used For the purpose of subparagraph (A), the ap- small refineries that are exempt under para- during one of the periods specified in sub- plicable volume for any of calendar years graph (11). paragraph (D) of the calendar year; 2005 through 2012 shall be determined in ac- ‘‘(5) EQUIVALENCY.—For the purpose of ‘‘(ii) a pattern of excessive seasonal vari- cordance with the following table: paragraph (2), 1 gallon of either cellulosic ation described in clause (i) will continue in Applicable volume of biomass ethanol or waste derived ethanol— subsequent calendar years; and renewable fuel ‘‘(A) shall be considered to be the equiva- ‘‘(iii) promulgating regulations or other re- ‘‘ Calendar year (in billions of gallons) lent of 1.5 gallon of renewable fuel; or quirements to impose a 35 percent or more 2005 ...... 3.1 ‘‘(B) if the cellulostic biomass ethanol or 2006 ...... 3.3 seasonal use of renewable fuels will not pre- waste derived ethanol is derived from agri- vent or interfere with the attainment of na- 2007 ...... 3.5 cultural residue or wood residue or is an ag- 2008 ...... 3.8 tional ambient air quality standards or sig- 2009 ...... 4.1 ricultural byproduct (as that term is used in nificantly increase the price of motor fuels 2010 ...... 4.4 section 919 of the Energy Policy Act of 2005), to the consumer. shall be considered to be the equivalent of 2.5 2011 ...... 4.7 ‘‘(D) PERIODS.—The two periods referred to gallons of renewable fuel. 2012 ...... 5.0 in this paragraph are— ‘‘(6) CREDIT PROGRAM.— ‘‘(ii) CALENDAR YEAR 2013 AND THERE- ‘‘(i) April through September; and ‘‘(A) IN GENERAL.—The regulations promul- AFTER.—For the purpose of subparagraph (A), ‘‘(ii) January through March and October gated to carry out this subsection shall pro- the applicable volume for calendar year 2013 through December. and each calendar year thereafter shall be vide for the generation of an appropriate ‘‘(E) EXCLUSIONS.—Renewable fuels blended equal to the product obtained by multi- amount of credits by any person that refines, or consumed in 2005 in a State which has re- plying— blends, or imports gasoline that contains a ceived a waiver under section 209(b) shall not ‘‘(I) the number of gallons of gasoline that quantity of renewable fuel that is greater be included in the study in subparagraph (A). the Administrator estimates will be sold or than the quantity required under paragraph ‘‘(8) WAIVERS.— introduced into commerce in the calendar (2). Such regulations shall provide for the year; and generation of an appropriate amount of cred- ‘‘(A) IN GENERAL.—The Administrator, in ‘‘(II) the ratio that— its for biodiesel fuel. If a small refinery noti- consultation with the Secretary of Agri- ‘‘(aa) 5.0 billion gallons of renewable fuels; fies the Administrator that it waives the ex- culture and the Secretary of Energy, may bears to emption provided paragraph (11), the regula- waive the requirement of paragraph (2) in ‘‘(bb) the number of gallons of gasoline tions shall provide for the generation of whole or in part on petition by one or more sold or introduced into commerce in cal- credits by the small refinery beginning in States by reducing the national quantity of endar year 2012. the year following such notification. renewable fuel required under this sub- ‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon ‘‘(B) USE OF CREDITS.—A person that gen- section— the petition of a non-contiguous State, the erates credits under subparagraph (A) may ‘‘(i) based on a determination by the Ad- Administrator may allow the renewable fuel use the credits, or transfer all or a portion of ministrator, after public notice and oppor- program established by subtitle A of title XV the credits to another person, for the pur- tunity for comment, that implementation of of the Energy Policy Act of 2005 to apply in pose of complying with paragraph (2). the requirement would severely harm the such non-contiguous State at the same time ‘‘(C) LIFE OF CREDITS.—A credit generated economy or environment of a State, a re- or any time after the Administrator promul- under this paragraph shall be valid to show gion, or the United States; or gates regulations under paragraph (2). The compliance— ‘‘(ii) based on a determination by the Ad- Administrator may promulgate or revise reg- ‘‘(i) in the calendar year in which the cred- ministrator, after public notice and oppor- ulations under paragraph (2), establish appli- it was generated or the next calendar year; tunity for comment, that there is an inad- cable percentages under paragraph (4), pro- or equate domestic supply or distribution ca- vide for the generation of credits under para- ‘‘(ii) in the calendar year in which the pacity to meet the requirement. graph (6), and take such other actions as credit was generated or next two consecutive ‘‘(B) PETITIONS FOR WAIVERS.—The Admin- may be necessary to allow for the applica- calendar years if the Administrator promul- istrator, in consultation with the Secretary tion of the renewable fuels program in a non- gates regulations under paragraph (7). of Agriculture and the Secretary of Energy, contiguous State. ‘‘(D) INABILITY TO PURCHASE SUFFICIENT shall approve or disapprove a State petition ‘‘(4) APPLICABLE PERCENTAGES.— CREDITS.—The regulations promulgated to for a waiver of the requirement of paragraph ‘‘(A) PROVISION OF ESTIMATE OF VOLUMES OF carry out this subsection shall include provi- (2) within 90 days after the date on which the GASOLINE SALES.—Not later than October 31 sions allowing any person that is unable to petition is received by the Administrator.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00134 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.063 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2287

‘‘(C) TERMINATION OF WAIVERS.—A waiver of the country, the Administrator may (A) in the first sentence, by striking ‘‘or granted under subparagraph (A) shall termi- waive, in whole or in part, the requirement (n)’’ each place it appears and inserting ‘‘(n), nate after 1 year, but may be renewed by the of paragraph (2) in any one year for which or (o)’’; and Administrator after consultation with the the determination is made for that area or (B) in the second sentence, by striking ‘‘or Secretary of Agriculture and the Secretary region of the country, except that any such (m)’’ and inserting ‘‘(m), or (o)’’. of Energy. waiver shall not have the effect of reducing (2) In the first sentence of paragraph (2), by ‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF the applicable volume of renewable fuel spec- striking ‘‘and (n)’’ each place it appears and PROGRAM.—Not later than 180 days after the ified in paragraph (2)(B) with respect to any inserting ‘‘(n), and (o)’’. enactment of this subsection, the Secretary year for which the determination is made. In (c) SURVEY OF RENEWABLE FUEL MARKET.— of Energy shall complete for the Adminis- determining economic impact under this (1) SURVEY AND REPORT.—Not later than trator a study assessing whether the renew- paragraph, the Administrator shall not con- December 1, 2006, and annually thereafter, able fuels requirement under paragraph (2) sider the reduced revenues available from the Administrator of the Environmental will likely result in significant adverse con- the Highway Trust Fund (section 9503 of the Protection Agency (in consultation with the sumer impacts in 2005, on a national, re- Internal Revenue Code of 1986) as a result of Secretary of Energy acting through the Ad- gional, or State basis. Such study shall the use of ethanol. ministrator of the Energy Information Ad- evaluate renewable fuel supplies and prices, ‘‘(11) SMALL REFINERIES.— ministration) shall— blendstock supplies, and supply and distribu- ‘‘(A) IN GENERAL.—The requirement of (A) conduct, with respect to each conven- tion system capabilities. Based on such paragraph (2) shall not apply to small refin- tional gasoline use area and each reformu- study, the Secretary shall make specific rec- eries until the first calendar year beginning lated gasoline use area in each State, a sur- ommendations to the Administrator regard- more than 5 years after the first year set vey to determine the market shares of— ing waiver of the requirements of paragraph forth in the table in paragraph (2)(B)(i). Not (i) conventional gasoline containing eth- (2), in whole or in part, to avoid any such ad- later than December 31, 2007, the Secretary anol; verse impacts. Within 270 days after the en- of Energy shall complete for the Adminis- (ii) reformulated gasoline containing eth- actment of this subsection, the Adminis- trator a study to determine whether the re- anol; trator shall, consistent with the rec- quirement of paragraph (2) would impose a (iii) conventional gasoline containing re- ommendations of the Secretary, waive, in disproportionate economic hardship on small whole or in part, the renewable fuels require- newable fuel; and refineries. For any small refinery that the (iv) reformulated gasoline containing re- ment under paragraph (2) by reducing the na- Secretary of Energy determines would expe- tional quantity of renewable fuel required newable fuel; and rience a disproportionate economic hardship, (B) submit to Congress, and make publicly under this subsection in 2005. This paragraph the Administrator shall extend the small re- shall not be interpreted as limiting the Ad- available, a report on the results of the sur- finery exemption for such small refinery for vey under subparagraph (A). ministrator’s authority to waive the require- no less than two additional years. ments of paragraph (2) in whole, or in part, (2) RECORDKEEPING AND REPORTING REQUIRE- ‘‘(B) ECONOMIC HARDSHIP.— under paragraph (8) or paragraph (10), per- MENTS.—The Administrator of the Environ- ‘‘(i) EXTENSION OF EXEMPTION.—A small re- mental Protection Agency (hereinafter in taining to waivers. finery may at any time petition the Admin- SSESSMENT AND WAIVER.—The Ad- this subsection referred to as the ‘‘Adminis- ‘‘(10) A istrator for an extension of the exemption ministrator, in consultation with the Sec- trator’’) may require any refiner, blender, or from the requirement of paragraph (2) for the retary of Energy and the Secretary of Agri- importer to keep such records and make reason of disproportionate economic hard- culture, shall evaluate the requirement of such reports as are necessary to ensure that ship. In evaluating a hardship petition, the paragraph (2) and determine, prior to Janu- the survey conducted under paragraph (1) is Administrator, in consultation with the Sec- ary 1, 2007, and prior to January 1 of any sub- accurate. The Administrator, to avoid dupli- retary of Energy, shall consider the findings sequent year in which the applicable volume cative requirements, shall rely, to the extent of the study in addition to other economic of renewable fuel is increased under para- practicable, on existing reporting and rec- factors. graph (2)(B), whether the requirement of ordkeeping requirements and other informa- ‘‘(ii) DEADLINE FOR ACTION ON PETITIONS.— paragraph (2), including the applicable vol- tion available to the Administrator includ- The Administrator shall act on any petition ume of renewable fuel contained in para- ing gasoline distribution patterns that in- graph (2)(B) should remain in effect, in whole submitted by a small refinery for a hardship clude multistate use areas. or in part, during 2007 or any year or years exemption not later than 90 days after the (3) APPLICABLE LAW.—Activities carried subsequent to 2007. In evaluating the require- receipt of the petition. out under this subsection shall be conducted ment of paragraph (2) and in making any de- ‘‘(C) CREDIT PROGRAM.—If a small refinery in a manner designed to protect confiden- termination under this section, the Adminis- notifies the Administrator that it waives the tiality of individual responses. exemption provided by this Act, the regula- trator shall consider the best available infor- SEC. 1502. FUELS SAFE HARBOR. mation and data collected by accepted meth- tions shall provide for the generation of ods or best available means regarding— credits by the small refinery beginning in (a) IN GENERAL.—Notwithstanding any ‘‘(A) the capacity of renewable fuel pro- the year following such notification. other provision of Federal or State law, no ducers to supply an adequate amount of re- ‘‘(D) OPT-IN FOR SMALL REFINERS.—A small renewable fuel, as defined by section 211(o)(1) newable fuel at competitive prices to fulfill refinery shall be subject to the requirements of the Clean Air Act, or methyl tertiary the requirement of paragraph (2); of this section if it notifies the Adminis- butyl ether (hereafter in this section referred ‘‘(B) the potential of the requirement of trator that it waives the exemption under to as ‘‘MTBE’’), used or intended to be used paragraph (2) to significantly raise the price subparagraph (A). as a motor vehicle fuel, nor any motor vehi- of gasoline, food (excluding the net price im- ‘‘(12) ETHANOL MARKET CONCENTRATION cle fuel containing such renewable fuel or pact on the requirement in paragraph (2) on ANALYSIS.— MTBE, shall be deemed a defective product commodities used in the production of eth- ‘‘(A) ANALYSIS.— by virtue of the fact that it is, or contains, anol), or heating oil for consumers in any ‘‘(i) IN GENERAL.—Not later than 180 days such a renewable fuel or MTBE, if it does not significant area or region of the country after the date of enactment of this sub- violate a control or prohibition imposed by above the price that would otherwise apply section, and annually thereafter, the Federal the Administrator of the Environmental to such commodities in the absence of such Trade Commission shall perform a market Protection Agency (hereinafter in this sec- requirement; concentration analysis of the ethanol pro- tion referred to as the ‘‘Administrator’’) ‘‘(C) the potential of the requirement of duction industry using the Herfindahl- under section 211 of such Act, and the manu- paragraph (2) to interfere with the supply of Hirschman Index to determine whether there facturer is in compliance with all requests fuel in any significant gasoline market or re- is sufficient competition among industry for information under subsection (b) of such gion of the country, including interference participants to avoid price setting and other section 211 of such Act. If the safe harbor with the efficient operation of refiners, anticompetitive behavior. provided by this section does not apply, the blenders, importers, wholesale suppliers, and ‘‘(ii) SCORING.—For the purpose of scoring existence of a claim of defective product retail vendors of gasoline, and other motor under clause (i) using the Herfindahl- shall be determined under otherwise applica- fuels; and Hirschman Index, all marketing arrange- ble law. Nothing in this subsection shall be ‘‘(D) the potential of the requirement of ments among industry participants shall be construed to affect the liability of any per- paragraph (2) to cause or promote considered. son for environmental remediation costs, exceedances of Federal, State, or local air ‘‘(B) REPORT.—Not later than December 1, drinking water contamination, negligence quality standards. 2005, and annually thereafter, the Federal for spills or other reasonably foreseeable If the Administrator determines, by clear Trade Commission shall submit to Congress events, public or private nuisance, trespass, and convincing information, after public no- and the Administrator a report on the re- breach of warranty, breach of contract, or tice and the opportunity for comment, that sults of the market concentration analysis any other liability other than liability based the requirement of paragraph (2) would have performed under subparagraph (A)(i).’’. upon a claim of defective product. significant and meaningful adverse impact (b) PENALTIES AND ENFORCEMENT.—Section (b) EFFECTIVE DATE.—This section shall be on the supply of fuel and related infrastruc- 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) effective as of September 5, 2003, and shall ture or on the economy, public health, or en- is amended as follows: apply with respect to all claims filed on or vironment of any significant area or region (1) In paragraph (1)— after that date.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00135 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.063 H20PT1 H2288 CONGRESSIONAL RECORD — HOUSE April 20, 2005 SEC. 1503. FINDINGS AND MTBE TRANSITION AS- cations for grants authorized by this para- accepted methods or the best available SISTANCE. graph. means. The review shall examine the use of (a) FINDINGS.—Congress finds that— ‘‘(B) FURTHER GRANTS.—The Secretary of MTBE in fuel and fuel additives, significant (1) since 1979, methyl tertiary butyl ether Energy, in consultation with the Adminis- beneficial and detrimental effects of this use (hereinafter in this section referred to as trator, may also further make grants to mer- on environmental quality or public health or ‘‘MTBE’’) has been used nationwide at low chant producers of MTBE in the United welfare including the costs and benefits of levels in gasoline to replace lead as an oc- States to assist the producers in the conver- such effects, likely effects of controls or pro- tane booster or anti-knocking agent; sion of eligible production facilities de- hibitions on MTBE regarding fuel avail- (2) Public Law 101–549 (commonly known as scribed in subparagraph (C) to the produc- ability and price, and other appropriate and the ‘‘Clean Air Act Amendments of 1990’’) (42 tion of such other fuel additives (unless the reasonable actions that are available to pro- U.S.C. 7401 et seq.) established a fuel oxygen- Administrator determines that such fuel ad- tect the environment or public health or wel- ate standard under which reformulated gaso- ditives may reasonably be anticipated to en- fare from any detrimental effects of the use line must contain at least 2 percent oxygen danger public health or the environment) of MTBE in fuel or fuel additives. The review by weight; that, consistent with this subsection— shall be peer-reviewed prior to publication (3) at the time of the adoption of the fuel ‘‘(i) have been registered and have been and all supporting data and analytical mod- oxygen standard, Congress was aware that tested or are being tested in accordance with els shall be available to the public. The re- significant use of MTBE would result from the requirements of this section; and view shall be completed no later than May the adoption of that standard, and that the ‘‘(ii) will contribute to replacing gasoline 31, 2014. use of MTBE would likely be important to volumes lost as a result of amendments (b) PRESIDENTIAL DETERMINATION.—No the cost-effective implementation of that made to subsection (k) of this section by sec- later than June 30, 2014, the President may program; tion 1504(a) and 1506 of the Energy Policy Act make a determination that restrictions on (4) Congress was aware that gasoline and of 2005. the use of MTBE to be implemented pursu- ant to section 1504 shall not take place and its component additives can and do leak ‘‘(C) ELIGIBLE PRODUCTION FACILITIES.—A from storage tanks; production facility shall be eligible to re- that the legal authority contained in section (5) the fuel industry responded to the fuel ceive a grant under this paragraph if the pro- 1504 to prohibit the use of MTBE in motor oxygenate standard established by Public duction facility— vehicle fuel shall become null and void. Law 101–549 by making substantial invest- ‘‘(i) is located in the United States; and SEC. 1506. ELIMINATION OF OXYGEN CONTENT ments in— ‘‘(ii) produced MTBE for consumption be- REQUIREMENT FOR REFORMU- LATED GASOLINE. (A) MTBE production capacity; and fore April 1, 2003 and ceased production at (a) ELIMINATION.— (B) systems to deliver MTBE-containing any time after the date of enactment of this (1) IN GENERAL.—Section 211(k) of the gasoline to the marketplace; paragraph. Clean Air Act (42 U.S.C. 7545(k)) is amended (6) having previously required oxygenates ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— as follows: like MTBE for air quality purposes, Congress There are authorized to be appropriated to (A) In paragraph (2)— has— carry out this paragraph $250,000,000 for each (i) in the second sentence of subparagraph (A) reconsidered the relative value of of fiscal years 2005 through 2012, to remain (A), by striking ‘‘(including the oxygen con- MTBE in gasoline; available until expended.’’. tent requirement contained in subparagraph (B) decided to establish a date certain for SEC. 1504. USE OF MTBE. (B))’’; action by the Environmental Protection (a) IN GENERAL.—Subject to subsections (e) (ii) by striking subparagraph (B); and Agency to prohibit the use of MTBE in gaso- and (f), not later than December 31, 2014, the (iii) by redesignating subparagraphs (C) line; and use of methyl tertiary butyl ether (herein- and (D) as subparagraphs (B) and (C), respec- (C) decided to provide for the elimination after in this section referred to as ‘‘MTBE’’) tively. of the oxygenate requirement for reformu- in motor vehicle fuel in any State other than (B) In paragraph (3)(A), by striking clause lated gasoline and to provide for a renewable a State described in subsection (c) is prohib- (v). fuels content requirement for motor fuel; ited. (C) In paragraph (7)— and (b) REGULATIONS.—The Administrator of (i) in subparagraph (A)— (7) it is appropriate for Congress to provide the Environmental Protection Agency (here- (I) by striking clause (i); and some limited transition assistance— after referred to in this section as the ‘‘Ad- (II) by redesignating clauses (ii) and (iii) as (A) to merchant producers of MTBE who ministrator’’) shall promulgate regulations clauses (i) and (ii), respectively; and produced MTBE in response to a market cre- to effect the prohibition in subsection (a). (ii) in subparagraph (C)— ated by the oxygenate requirement con- (c) STATES THAT AUTHORIZE USE.—A State (I) by striking clause (ii). tained in the Clean Air Act; and described in this subsection is a State in (II) by redesignating clause (iii) as clause (B) for the purpose of mitigating any fuel which the Governor of the State submits a (ii). supply problems that may result from the notification to the Administrator author- (2) EFFECTIVE DATE.—The amendments elimination of the oxygenate requirement izing the use of MTBE in motor vehicle fuel made by paragraph (1) take effect 270 days for reformulated gasoline and from the deci- sold or used in the State. after the date of enactment of this Act, ex- sion to establish a date certain for action by (d) PUBLICATION OF NOTICE.—The Adminis- cept that such amendments shall take effect the Environmental Protection Agency to trator shall publish in the Federal Register upon such date of enactment in any State prohibit the use of MTBE in gasoline. each notice submitted by a State under sub- that has received a waiver under section (b) PURPOSES.—The purpose of this section section (c). 209(b) of the Clean Air Act. is to provide assistance to merchant pro- (e) TRACE QUANTITIES.—In carrying out (b) MAINTENANCE OF TOXIC AIR POLLUTANT ducers of MTBE in making the transition subsection (a), the Administrator may allow EMISSION REDUCTIONS.—Section 211(k)(1) of from producing MTBE to producing other trace quantities of MTBE, not to exceed 0.5 the Clean Air Act (42 U.S.C. 7545(k)(1)) is fuel additives. percent by volume, to be present in motor amended as follows: (c) MTBE MERCHANT PRODUCER CONVER- vehicle fuel in cases that the Administrator (1) By striking ‘‘Within 1 year after the en- SION ASSISTANCE.—Section 211(c) of the Clean determines to be appropriate. actment of the Clean Air Act Amendments of Air Act (42 U.S.C. 7545(c)) is amended by add- (f) LIMITATION.—The Administrator, under 1990,’’ and inserting the following: ing at the end the following: authority of subsection (a), shall not pro- ‘‘(A) IN GENERAL.—Not later than Novem- ‘‘(5) MTBE MERCHANT PRODUCER CONVER- hibit or control the production of MTBE for ber 15, 1991,’’. SION ASSISTANCE.— export from the United States or for any (2) By adding at the end the following: ‘‘(A) IN GENERAL.— other use other than for use in motor vehicle ‘‘(B) MAINTENANCE OF TOXIC AIR POLLUTANT ‘‘(i) GRANTS.—The Secretary of Energy, in fuel. EMISSIONS REDUCTIONS FROM REFORMULATED consultation with the Administrator, may (g) EFFECT ON STATE LAW.—The amend- GASOLINE.— make grants to merchant producers of meth- ments made by this title have no effect re- ‘‘(i) DEFINITIONS.—In this subparagraph the yl tertiary butyl ether (hereinafter in this garding any available authority of States to term ‘PADD’ means a Petroleum Adminis- subsection referred to as ‘MTBE’) in the limit the use of methyl tertiary butyl ether tration for Defense District. United States to assist the producers in the in motor vehicle fuel. ‘‘(ii) REGULATIONS REGARDING EMISSIONS OF conversion of eligible production facilities SEC. 1505. NATIONAL ACADEMY OF SCIENCES RE- TOXIC AIR POLLUTANTS.—Not later than 270 described in subparagraph (C) to the produc- VIEW AND PRESIDENTIAL DETER- days after the date of enactment of this sub- tion of iso-octane, iso-octene, alkylates, or MINATION. paragraph the Administrator shall establish, renewable fuels. (a) NAS REVIEW.—Not later than May 31, for each refinery or importer, standards for ‘‘(ii) DETERMINATION.—The Administrator, 2013, the Secretary shall enter into an ar- toxic air pollutants from use of the reformu- in consultation with the Secretary of En- rangement with the National Academy of lated gasoline produced or distributed by the ergy, may determine that transition assist- Sciences to review the use of methyl tertiary refinery or importer that maintain the re- ance for the production of iso-octane, iso- butyl ether (hereafter referred to in this sec- duction of the average annual aggregate octene, alkylates, or renewable fuels is in- tion as ‘‘MTBE’’) in fuel and fuel additives. emissions of toxic air pollutants for reformu- consistent with the provisions of subpara- The review shall only use the best available lated gasoline produced or distributed by the graph (B) and, on that basis, may deny appli- scientific information and data collected by refinery or importer during calendar years

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00136 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.064 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2289

1999 and 2000, determined on the basis of data gasoline regulations under subpart D of part ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In collected by the Administrator with respect 80 of title 40, Code of Federal Regulations, to order to improve the ability to evaluate the to the refinery or importer. consolidate the regulations applicable to effectiveness of the Nation’s renewable fuels ‘‘(iii) STANDARDS APPLICABLE TO SPECIFIC VOC-Control Regions 1 and 2 under section mandate, the Administrator shall conduct REFINERIES OR IMPORTERS.— 80.41 of that title by eliminating the less and publish the results of a survey of renew- ‘‘(I) APPLICABILITY OF STANDARDS.—For stringent requirements applicable to gaso- able fuels demand in the motor vehicle fuels any calendar year, the standards applicable line designated for VOC-Control Region 2 and market in the United States monthly, and in to a refinery or importer under clause (ii) instead applying the more stringent require- a manner designed to protect the confiden- shall apply to the quantity of gasoline pro- ments applicable to gasoline designated for tiality of individual responses. In conducting duced or distributed by the refinery or im- VOC-Control Region 1. the survey, the Administrator shall collect porter in the calendar year only to the ex- (d) SAVINGS CLAUSE.—Nothing in this sec- information both on a national and regional tent that the quantity is less than or equal tion is intended to affect or prejudice either basis, including each of the following: to the average annual quantity of reformu- any legal claims or actions with respect to ‘‘(A) The quantity of renewable fuels pro- lated gasoline produced or distributed by the regulations promulgated by the Adminis- duced. refinery or importer during calendar years trator of the Environmental Protection ‘‘(B) The quantity of renewable fuels blend- 1999 and 2000. Agency (hereinafter in this subsection re- ed. ‘‘(II) APPLICABILITY OF OTHER STANDARDS.— ferred to as the ‘‘Administrator’’) prior to ‘‘(C) The quantity of renewable fuels im- For any calendar year, the quantity of gaso- the date of enactment of this Act regarding ported. line produced or distributed by a refinery or emissions of toxic air pollutants from motor ‘‘(D) The quantity of renewable fuels de- importer that is in excess of the quantity vehicles or the adjustment of standards ap- manded. subject to subclause (I) shall be subject to plicable to a specific refinery or importer ‘‘(E) Market price data. standards for toxic air pollutants promul- made under such prior regulations and the ‘‘(F) Such other analyses or evaluations as gated under subparagraph (A) and paragraph Administrator may apply such adjustments the Administrator finds is necessary to (3)(B). to the standards applicable to such refinery achieve the purposes of this section. ‘‘(iv) CREDIT PROGRAM.—The Administrator or importer under clause (iii)(I) of section ‘‘(2) The Administrator shall also collect or shall provide for the granting and use of 211(k)(1)(B) of the Clean Air Act, except estimate information both on a national and credits for emissions of toxic air pollutants that— regional basis, pursuant to subparagraphs in the same manner as provided in paragraph (1) the Administrator shall revise such ad- (A) through (F) of paragraph (1), for the 5 (7). justments to be based only on calendar years years prior to implementation of this sub- ‘‘(v) REGIONAL PROTECTION OF TOXICS RE- 1999–2000; and section. DUCTION BASELINES.— (2) for adjustments based on toxic air pol- ‘‘(3) This subsection does not affect the au- ‘‘(I) IN GENERAL.—Not later than 60 days lutant emissions from reformulated gasoline thority of the Administrator to collect data after the date of enactment of this subpara- significantly below the national annual aver- under section 52 of the Federal Energy Ad- graph, and not later than April 1 of each cal- age emissions of toxic air pollutants from all ministration Act of 1974 (15 U.S.C. 790a).’’. endar year that begins after that date of en- reformulated gasoline, the Administrator SEC. 1509. REDUCING THE PROLIFERATION OF actment, the Administrator shall publish in may revise such adjustments to take ac- STATE FUEL CONTROLS. (a) EPA APPROVAL OF STATE PLANS WITH the Federal Register a report that specifies, count of the scope of Federal or State prohi- with respect to the previous calendar year— FUEL CONTROLS.—Section 211(c)(4)(C) of the bitions on the use of methyl tertiary butyl ‘‘(aa) the quantity of reformulated gasoline Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is ether imposed after the date of the enact- produced that is in excess of the average an- amended by adding at the end the following: ment of this paragraph, except that any such nual quantity of reformulated gasoline pro- ‘‘The Administrator shall not approve a con- adjustment shall require such refiner or im- duced in 1999 and 2000; and trol or prohibition respecting the use of a porter, to the greatest extent practicable, to ‘‘(bb) the reduction of the average annual fuel or fuel additive under this subparagraph maintain the reduction achieved during cal- aggregate emissions of toxic air pollutants unless the Administrator, after consultation endar years 1999–2000 in the average annual in each PADD, based on retail survey data or with the Secretary of Energy, publishes in aggregate emissions of toxic air pollutants data from other appropriate sources. the Federal Register a finding that, in the from reformulated gasoline produced or dis- ‘‘(II) EFFECT OF FAILURE TO MAINTAIN AG- Administrator’s judgment, such control or tributed by the refinery or importer; Pro- GREGATE TOXICS REDUCTIONS.—If, in any cal- prohibition will not cause fuel supply or dis- vided, that any such adjustment shall not be endar year, the reduction of the average an- tribution interruptions or have a significant made at a level below the average percentage nual aggregate emissions of toxic air pollut- adverse impact on fuel producibility in the of reductions of emissions of toxic air pollut- ants in a PADD fails to meet or exceed the affected area or contiguous areas.’’. ants for reformulated gasoline supplied to reduction of the average annual aggregate (b) STUDY.—The Administrator of the Envi- PADD I during calendar years 1999–2000. emissions of toxic air pollutants in the ronmental Protection Agency (hereinafter in PADD in calendar years 1999 and 2000, the SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL this subsection referred to as the ‘‘Adminis- Administrator, not later than 90 days after CHANGES. trator’’), in cooperation with the Secretary the date of publication of the report for the Section 211 of the Clean Air Act (42 U.S.C. of Energy, shall undertake a study of the calendar year under subclause (I), shall— 7545) is amended by inserting after sub- projected effects on air quality, the pro- ‘‘(aa) identify, to the maximum extent section (o) the following: liferation of fuel blends, fuel availability, practicable, the reasons for the failure, in- ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL and fuel costs of providing a preference for cluding the sources, volumes, and character- CHANGES AND EMISSIONS MODEL.— each of the following: istics of reformulated gasoline that contrib- ‘‘(1) ANTI-BACKSLIDING ANALYSIS.— (A) Reformulated gasoline referred to in uted to the failure; and ‘‘(A) DRAFT ANALYSIS.—Not later than 4 subsection (k) of section 211 of the Clean Air ‘‘(bb) promulgate revisions to the regula- years after the date of enactment of this sub- Act. tions promulgated under clause (ii), to take section, the Administrator shall publish for (B) A low RVP gasoline blend that has effect not earlier than 180 days but not later public comment a draft analysis of the been certified by the Administrator as hav- than 270 days after the date of promulgation, changes in emissions of air pollutants and ing a Reid Vapor Pressure of 7.0 pounds per to provide that, notwithstanding clause air quality due to the use of motor vehicle square inch (psi). (iii)(II), all reformulated gasoline produced fuel and fuel additives resulting from imple- (C) A low RVP gasoline blend that has been or distributed at each refinery or importer mentation of the amendments made by sub- certified by the Administrator as having a shall meet the standards applicable under title A of title XV of the Energy Policy Act Reid Vapor Pressure of 7.8 pounds per square clause (ii) not later than April 1 of the year of 2005. inch (psi). following the report in subclause (II) and for ‘‘(B) FINAL ANALYSIS.—After providing a In carrying out such study, the Adminis- subsequent years. reasonable opportunity for comment but not trator shall obtain comments from affected later than 5 years after the date of enact- ‘‘(vi) REGULATIONS TO CONTROL HAZARDOUS parties. The Administrator shall submit the ment of this paragraph, the Administrator AIR POLLUTANTS FROM MOTOR VEHICLES AND results of such study to the Congress not shall publish the analysis in final form. MOTOR VEHICLE FUELS.—Not later than July later than 18 months after the date of enact- 1, 2005, the Administrator shall promulgate ‘‘(2) EMISSIONS MODEL.—For the purposes of ment of this Act, together with any rec- final regulations to control hazardous air this subsection, as soon as the necessary ommended legislative changes. data are available, the Administrator shall pollutants from motor vehicles and motor SEC. 1510. FUEL SYSTEM REQUIREMENTS HAR- vehicle fuels, as provided for in section develop and finalize an emissions model that MONIZATION STUDY. 80.1045 of title 40, Code of Federal Regula- reasonably reflects the effects of gasoline (a) STUDY.— tions (as in effect on the date of enactment characteristics or components on emissions (1) IN GENERAL.—The Administrator of the of this subparagraph).’’. from vehicles in the motor vehicle fleet dur- Environmental Protection Agency (herein- (c) CONSOLIDATION IN REFORMULATED GASO- ing calendar year 2005.’’. after in this section referred to as the ‘‘Ad- LINE REGULATIONS.—Not later than 180 days SEC. 1508. DATA COLLECTION. ministrator’’) and the Secretary of Energy after the date of enactment of this Act, the Section 205 of the Department of Energy shall jointly conduct a study of Federal, Administrator of the Environmental Protec- Organization Act (42 U.S.C. 7135) is amended State, and local requirements concerning tion Agency shall revise the reformulated by adding at the end the following: motor vehicle fuels, including—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00137 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.064 H20PT1 H2290 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (A) requirements relating to reformulated (B) automobile manufacturers; with respect to principal and interest. The gasoline, volatility (measured in Reid vapor (C) motor vehicle fuel producers and dis- validity of the guarantee shall be incontest- pressure), oxygenated fuel, and diesel fuel; tributors; and able in the hands of a holder of the guaran- and (D) the public. teed loan. (B) other requirements that vary from SEC. 1511. COMMERCIAL BYPRODUCTS FROM MU- (j) REPORTS.—Until each guaranteed loan State to State, region to region, or locality NICIPAL SOLID WASTE AND CEL- under this section has been repaid in full, the to locality. LULOSIC BIOMASS LOAN GUAR- Secretary shall annually submit to Congress (2) REQUIRED ELEMENTS.—The study shall ANTEE PROGRAM. a report on the activities of the Secretary assess— (a) DEFINITION OF MUNICIPAL SOLID under this section. (A) the effect of the variety of require- WASTE.—In this section, the term ‘‘munic- (k) AUTHORIZATION OF APPROPRIATIONS.— ments described in paragraph (1) on the sup- ipal solid waste’’ has the meaning given the There are authorized to be appropriated such ply, quality, and price of motor vehicle fuels term ‘‘solid waste’’ in section 1004 of the sums as are necessary to carry out this sec- available to consumers in various States and Solid Waste Disposal Act (42 U.S.C. 6903). tion. localities; (b) ESTABLISHMENT OF PROGRAM.—The Sec- (l) TERMINATION OF AUTHORITY.—The au- (B) the effect of the requirements described retary of Energy (hereinafter in this section thority of the Secretary to issue a loan guar- in paragraph (1) on achievement of— referred to as the ‘‘Secretary’’) shall estab- antee under subsection (b) terminates on the (i) national, regional, and local air quality lish a program to provide guarantees of loans date that is 10 years after the date of enact- ment of this Act. standards and goals; and by private institutions for the construction (ii) related environmental and public of facilities for the processing and conver- SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DE- sion of municipal solid waste and cellulosic RIVED ETHANOL CONVERSION AS- health protection standards and goals; SISTANCE. (C) the effect of Federal, State, and local biomass into fuel ethanol and other commer- Section 211 of the Clean Air Act (42 U.S.C. motor vehicle fuel regulations, including cial byproducts. 7545) is amended by adding at the end the fol- (c) REQUIREMENTS.—The Secretary may multiple motor vehicle fuel requirements, lowing: on— provide a loan guarantee under subsection ‘‘(r) CELLULOSIC BIOMASS AND WASTE-DE- (i) domestic refineries; (b) to an applicant if— RIVED ETHANOL CONVERSION ASSISTANCE.— (ii) the fuel distribution system; and (1) without a loan guarantee, credit is not ‘‘(1) IN GENERAL.—The Secretary of Energy (iii) industry investment in new capacity; available to the applicant under reasonable may provide grants to merchant producers of (D) the effect of the requirements de- terms or conditions sufficient to finance the cellulosic biomass ethanol and waste-derived scribed in paragraph (1) on emissions from construction of a facility described in sub- ethanol in the United States to assist the vehicles, refineries, and fuel handling facili- section (b); producers in building eligible production fa- ties; (2) the prospective earning power of the ap- cilities described in paragraph (2) for the (E) the feasibility of developing national or plicant and the character and value of the production of ethanol. regional motor vehicle fuel slates for the 48 security pledged provide a reasonable assur- ‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A contiguous States that, while improving air ance of repayment of the loan to be guaran- production facility shall be eligible to re- quality at the national, regional and local teed in accordance with the terms of the ceive a grant under this subsection if the levels consistent with the attainment of na- loan; and production facility— tional ambient air quality standards, could— (3) the loan bears interest at a rate deter- ‘‘(A) is located in the United States; and (i) enhance flexibility in the fuel distribu- mined by the Secretary to be reasonable, ‘‘(B) uses cellulosic biomass or waste-de- tion infrastructure and improve fuel taking into account the current average rived feedstocks derived from agricultural fungibility; yield on outstanding obligations of the residues, wood residues, municipal solid (ii) reduce price volatility and costs to United States with remaining periods of ma- waste, or agricultural byproducts as that consumers and producers; turity comparable to the maturity of the term is used in section 919 of the Energy Pol- (iii) provide increased liquidity to the gas- loan. icy Act of 2005. oline market; and (d) CRITERIA.—In selecting recipients of ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— (iv) enhance fuel quality, consistency, and loan guarantees from among applicants, the There are authorized to be appropriated the supply; Secretary shall give preference to proposals following amounts to carry out this sub- (F) the feasibility of providing incentives that— section: to promote cleaner burning motor vehicle (1) meet all applicable Federal and State ‘‘(A) $100,000,000 for fiscal year 2005. fuel; and permitting requirements; ‘‘(B) $250,000,000 for fiscal year 2006. (G) the extent to which improvements in (2) are most likely to be successful; and ‘‘(C) $400,000,000 for fiscal year 2007.’’. air quality and any increases or decreases in (3) are located in local markets that have SEC. 1513. BLENDING OF COMPLIANT REFORMU- the price of motor fuel can be projected to the greatest need for the facility because LATED GASOLINES. result from the Environmental Protection of— Section 211 of the Clean Air Act (42 U.S.C. Agency’s Tier II requirements for conven- (A) the limited availability of land for 7545) is amended by adding at the end the fol- tional gasoline and vehicle emission sys- waste disposal; lowing: tems, the reformulated gasoline program, (B) the availability of sufficient quantities ‘‘(s) BLENDING OF COMPLIANT REFORMU- the renewable content requirements estab- of cellulosic biomass; or LATED GASOLINES.— lished by this subtitle, State programs re- (C) a high level of demand for fuel ethanol ‘‘(1) IN GENERAL.—Notwithstanding sub- garding gasoline volatility, and any other re- or other commercial byproducts of the facil- sections (h) and (k) and subject to the limi- quirements imposed by States or localities ity. tations in paragraph (2) of this subsection, it affecting the composition of motor fuel. (e) MATURITY.—A loan guaranteed under shall not be a violation of this subtitle for a (b) REPORT.— subsection (b) shall have a maturity of not gasoline retailer, during any month of the (1) IN GENERAL.—Not later than December more than 20 years. year, to blend at a retail location batches of 31, 2007, the Administrator and the Secretary (f) TERMS AND CONDITIONS.—The loan ethanol-blended and non-ethanol-blended re- of Energy shall submit to Congress a report agreement for a loan guaranteed under sub- formulated gasoline, provided that— on the results of the study conducted under section (b) shall provide that no provision of ‘‘(A) each batch of gasoline to be blended subsection (a). the loan agreement may be amended or has been individually certified as in compli- (2) RECOMMENDATIONS.— waived without the consent of the Secretary. ance with subsections (h) and (k) prior to (A) IN GENERAL.—The report under this (g) ASSURANCE OF REPAYMENT.—The Sec- being blended; subsection shall contain recommendations retary shall require that an applicant for a ‘‘(B) the retailer notifies the Adminis- for legislative and administrative actions loan guarantee under subsection (b) provide trator prior to such blending, and identifies that may be taken— an assurance of repayment in the form of a the exact location of the retail station and (i) to improve air quality; performance bond, insurance, collateral, or the specific tank in which such blending will (ii) to reduce costs to consumers and pro- other means acceptable to the Secretary in take place; ducers; and an amount equal to not less than 20 percent ‘‘(C) the retailer retains and, as requested (iii) to increase supply liquidity. of the amount of the loan. by the Administrator or the Administrator’s (B) REQUIRED CONSIDERATIONS.—The rec- (h) GUARANTEE FEE.—The recipient of a designee, makes available for inspection ommendations under subparagraph (A) shall loan guarantee under subsection (b) shall such certifications accounting for all gaso- take into account the need to provide ad- pay the Secretary an amount determined by line at the retail outlet; and vance notice of required modifications to re- the Secretary to be sufficient to cover the ‘‘(D) the retailer does not, between June 1 finery and fuel distribution systems in order administrative costs of the Secretary relat- and September 15 of each year, blend a batch to ensure an adequate supply of motor vehi- ing to the loan guarantee. of VOC-controlled, or ‘summer’, gasoline cle fuel in all States. (i) FULL FAITH AND CREDIT.—The full faith with a batch of non-VOC-controlled, or ‘win- (3) CONSULTATION.—In developing the re- and credit of the United States is pledged to ter’, gasoline (as these terms are defined port under this subsection, the Adminis- the payment of all guarantees made under under subsections (h) and (k)). trator and the Secretary of Energy shall con- this section. Any such guarantee made by ‘‘(2) LIMITATIONS.— sult with— the Secretary shall be conclusive evidence of ‘‘(A) FREQUENCY LIMITATION.—A retailer (A) the Governors of the States; the eligibility of the loan for the guarantee shall only be permitted to blend batches of

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00138 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.064 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2291 compliant reformulated gasoline under this may use funds from the Trust Fund that are tion costs must be demonstrated to the Ad- subsection a maximum of two blending peri- not distributed to States under subparagraph ministrator (or the State pursuant to para- ods between May 1 and September 15 of each (A) for enforcement of any regulation pro- graph (7)) by the owner or operator. calendar year. mulgated by the Administrator under this ‘‘(ii) CONSIDERATIONS.—In determining ‘‘(B) DURATION OF BLENDING PERIOD.—Each subtitle. whether or not a demonstration is made blending period authorized under subpara- ‘‘(C) PROHIBITED USES.—Funds provided to under clause (i), the Administrator (or the graph (A) shall extend for a period of no a State by the Administrator under subpara- State pursuant to paragraph (7)) shall take more than 10 consecutive calendar days. graph (A) shall not be used by the State to into consideration the ability of the owner ‘‘(3) SURVEYS.—A sample of gasoline taken provide financial assistance to an owner or or operator to pay corrective action costs from a retail location that has blended gaso- operator to meet any requirement relating and still maintain its basic business oper- line within the past 30 days and is in compli- to underground storage tanks under subparts ations, including consideration of the overall ance with subparagraphs (A), (B), (C), and (D) B, C, D, H, and G of part 280 of title 40, Code financial condition of the owner or operator of paragraph (1) shall not be used in a VOC of Federal Regulations (as in effect on the and demonstrable constraints on the ability survey mandated by 40 C.F.R. Part 80. date of enactment of this subsection). of the owner or operator to raise revenues. ‘‘(4) STATE IMPLEMENTATION PLANS.—A ‘‘(2) ALLOCATION.— ‘‘(iii) INFORMATION.—An owner or operator State shall be held harmless and shall not be ‘‘(A) PROCESS.—Subject to subparagraphs requesting consideration under this subpara- required to revise its State implementation (B) and (C), in the case of a State with which graph shall promptly provide the Adminis- plan under section 110 to account for the the Administrator has entered into a cooper- trator (or the State pursuant to paragraph emissions from blended gasoline authorized ative agreement under section 9003(h)(7)(A), (7)) with all relevant information needed to under paragraph (1). the Administrator shall distribute funds determine the ability of the owner or oper- ‘‘(5) PRESERVATION OF STATE LAW.—Nothing from the Trust Fund to the State using an ator to pay corrective action costs. in this subsection shall— allocation process developed by the Adminis- ‘‘(iv) ALTERNATIVE PAYMENT METHODS.— ‘‘(A) preempt existing State laws or regula- trator. The Administrator (or the State pursuant to tions regulating the blending of compliant ‘‘(B) DIVERSION OF STATE FUNDS.—The Ad- paragraph (7)) shall consider alternative pay- gasolines; or ministrator shall not distribute funds under ment methods as may be necessary or appro- ‘‘(B) prohibit a State from adopting such subparagraph (A)(iii) of subsection (f)(1) to priate if the Administrator (or the State pur- restrictions in the future. any State that has diverted funds from a suant to paragraph (7)) determines that an ‘‘(6) REGULATIONS.—The Administrator State fund or State assurance program for owner or operator cannot pay all or a por- shall promulgate, after notice and comment, purposes other than those related to the reg- tion of the costs in a lump sum payment. regulations implementing this subsection ulation of underground storage tanks cov- ‘‘(iii) MISREPRESENTATION.—If an owner or within one year after the date of enactment ered by this subtitle, with the exception of operator provides false information or other- of this subsection. those transfers that had been completed ear- wise misrepresents their financial situation lier than the date of enactment of this sub- ‘‘(7) EFFECTIVE DATE.—This subsection under clause (ii), the Administrator (or the shall become effective 15 months after the section. State pursuant to paragraph (7)) shall seek date of its enactment and shall apply to ‘‘(C) REVISIONS TO PROCESS.—The Adminis- full recovery of the costs of all such actions blended batches of reformulated gasoline on trator may revise the allocation process re- pursuant to the provisions of subparagraph or after that date, regardless of whether the ferred to in subparagraph (A) after— (A) without consideration of the factors in implementing regulations required by para- ‘‘(i) consulting with State agencies respon- subparagraph (B).’’. graph (6) have been promulgated by the Ad- sible for overseeing corrective action for re- leases from underground storage tanks; and SEC. 1523. INSPECTION OF UNDERGROUND STOR- ministrator by that date. AGE TANKS. ‘‘(ii) taking into consideration, at a min- ‘‘(8) LIABILITY.—No person other than the (a) INSPECTION REQUIREMENTS.—Section person responsible for blending under this imum, each of the following: ‘‘(I) The number of confirmed releases from 9005 of the Solid Waste Disposal Act (42 subsection shall be subject to an enforce- U.S.C. 6991d) is amended by inserting the fol- ment action or penalties under subsection (d) federally regulated leaking underground storage tanks in the States. lowing new subsection at the end thereof: solely arising from the blending of compliant ‘‘(c) INSPECTION REQUIREMENTS.— reformulated gasolines by the retailers. ‘‘(II) The number of federally regulated un- derground storage tanks in the States. ‘‘(1) UNINSPECTED TANKS.—In the case of ‘‘(9) FORMULATION OF GASOLINE.—This sub- underground storage tanks regulated under section does not grant authority to the Ad- ‘‘(III) The performance of the States in im- plementing and enforcing the program. this subtitle that have not undergone an in- ministrator or any State (or any subdivision spection since December 22, 1998, not later thereof) to require reformulation of gasoline ‘‘(IV) The financial needs of the States. ‘‘(V) The ability of the States to use the than 2 years after the date of enactment of at the refinery to adjust for potential or ac- this subsection, the Administrator or a State tual emissions increases due to the blending funds referred to in subparagraph (A) in any year. that receives funding under this subtitle, as authorized by this subsection.’’. appropriate, shall conduct on-site inspec- ‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.— Subtitle B—Underground Storage Tank Distributions from the Trust Fund under tions of all such tanks to determine compli- Compliance this subsection shall be made directly to a ance with this subtitle and the regulations SEC. 1521. SHORT TITLE. State agency that— under this subtitle (40 C.F.R. 280) or a re- This subtitle may be cited as the ‘‘Under- ‘‘(A) enters into a cooperative agreement quirement or standard of a State program ground Storage Tank Compliance Act of referred to in paragraph (2)(A); or developed under section 9004. 2005’’. ‘‘(B) is enforcing a State program approved ‘‘(2) PERIODIC INSPECTIONS.—After comple- SEC. 1522. LEAKING UNDERGROUND STORAGE under this section.’’. tion of all inspections required under para- TANKS. (b) WITHDRAWAL OF APPROVAL OF STATE graph (1), the Administrator or a State that (a) IN GENERAL.—Section 9004 of the Solid FUNDS.—Section 9004(c) of the Solid Waste receives funding under this subtitle, as ap- Waste Disposal Act (42 U.S.C. 6991c) is Disposal Act (42 U.S.C. 6991c(c)) is amended propriate, shall conduct on-site inspections amended by adding at the end the following: by inserting the following new paragraph at of each underground storage tank regulated ‘‘(f) TRUST FUND DISTRIBUTION.— the end thereof: under this subtitle at least once every 3 ‘‘(1) IN GENERAL.— ‘‘(6) WITHDRAWAL OF APPROVAL.—After an years to determine compliance with this sub- ‘‘(A) AMOUNT AND PERMITTED USES OF DIS- opportunity for good faith, collaborative ef- title and the regulations under this subtitle TRIBUTION.—The Administrator shall dis- forts to correct financial deficiencies with a (40 C.F.R. 280) or a requirement or standard tribute to States not less than 80 percent of State fund, the Administrator may withdraw of a State program developed under section the funds from the Trust Fund that are made approval of any State fund or State assur- 9004. The Administrator may extend for up available to the Administrator under section ance program to be used as a financial re- to one additional year the first 3-year inspec- 9014(2)(A) for each fiscal year for use in pay- sponsibility mechanism without with- tion interval under this paragraph if the ing the reasonable costs, incurred under a drawing approval of a State underground State demonstrates that it has insufficient cooperative agreement with any State for— storage tank program under section resources to complete all such inspections ‘‘(i) corrective actions taken by the State 9004(a).’’. within the first 3-year period. under section 9003(h)(7)(A); (c) ABILITY TO PAY.—Section 9003(h)(6) of ‘‘(3) INSPECTION AUTHORITY.—Nothing in ‘‘(ii) necessary administrative expenses, as the Solid Waste Disposal Act (42 U.S.C. this section shall be construed to diminish determined by the Administrator, that are 6591a(h)(6)) is amended by adding the fol- the Administrator’s or a State’s authorities directly related to State fund or State assur- lowing new subparagraph at the end thereof: under section 9005(a).’’. ance programs under subsection (c)(1); or ‘‘(E) INABILITY OR LIMITED ABILITY TO (b) STUDY OF ALTERNATIVE INSPECTION PRO- ‘‘(iii) enforcement, by a State or a local PAY.— GRAMS.—The Administrator of the Environ- government, of State or local regulations ‘‘(i) IN GENERAL.—In determining the level mental Protection Agency, in coordination pertaining to underground storage tanks reg- of recovery effort, or amount that should be with a State, shall gather information on ulated under this subtitle. recovered, the Administrator (or the State compliance assurance programs that could ‘‘(B) USE OF FUNDS FOR ENFORCEMENT.—In pursuant to paragraph (7)) shall consider the serve as an alternative to the inspection pro- addition to the uses of funds authorized owner or operator’s ability to pay. An inabil- grams under section 9005(c) of the Solid under subparagraph (A), the Administrator ity or limited ability to pay corrective ac- Waste Disposal Act (42 U.S.C. 6991d(c)) and

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shall, within 4 years after the date of enact- agement responsibilities is determined to be ‘‘(i) GOVERNMENT-OWNED TANKS.— ment of this Act, submit a report to the Con- out of compliance with— ‘‘(1) STATE COMPLIANCE REPORT.—(A) Not gress containing the results of such study. ‘‘(A) a requirement or standard promul- later than 2 years after the date of enact- SEC. 1524. OPERATOR TRAINING. gated by the Administrator under section ment of this subsection, each State that re- (a) IN GENERAL.—Section 9010 of the Solid 9003; or ceives funding under this subtitle shall sub- Waste Disposal Act (42 U.S.C. 6991i) is ‘‘(B) a requirement or standard of a State mit to the Administrator a State compliance amended to read as follows: program approved under section 9004.’’. report that— ‘‘SEC. 9010. OPERATOR TRAINING. (b) STATE PROGRAM REQUIREMENT.—Sec- ‘‘(i) lists the location and owner of each underground storage tank described in sub- ‘‘(a) GUIDELINES.— tion 9004(a) of the Solid Waste Disposal Act paragraph (B) in the State that, as of the ‘‘(1) IN GENERAL.—Not later than 2 years (42 U.S.C. 6991c(a)) is amended by striking date of submission of the report, is not in after the date of enactment of the Under- ‘‘and’’ at the end of paragraph (7), by strik- compliance with section 9003; and ground Storage Tank Compliance Act of 2005, ing the period at the end of paragraph (8) and ‘‘(ii) specifies the date of the last inspec- in consultation and cooperation with States inserting ‘‘; and’’, and by adding the fol- tion and describes the actions that have been and after public notice and opportunity for lowing new paragraph at the end thereof: and will be taken to ensure compliance of comment, the Administrator shall publish ‘‘(9) State-specific training requirements the underground storage tank listed under guidelines that specify training require- as required by section 9010.’’. clause (i) with this subtitle. ments for— (c) ENFORCEMENT.—Section 9006(d)(2) of ‘‘(B) An underground storage tank de- ‘‘(A) persons having primary responsibility such Act (42 U.S.C. 6991e) is amended as fol- scribed in this subparagraph is an under- for on-site operation and maintenance of un- lows: ground storage tank that is— derground storage tank systems; (1) By striking ‘‘or’’ at the end of subpara- ‘‘(i) regulated under this subtitle; and ‘‘(B) persons having daily on-site responsi- graph (B). ‘‘(ii) owned or operated by the Federal, bility for the operation and maintenance of (2) By adding the following new subpara- State, or local government. underground storage tanks systems; and graph after subparagraph (C): ‘‘(C) The Administrator shall make each ‘‘(C) daily, on-site employees having pri- ‘‘(D) the training requirements established report, received under subparagraph (A), mary responsibility for addressing emer- by States pursuant to section 9010 (relating available to the public through an appro- gencies presented by a spill or release from to operator training); or’’. (d) TABLE OF CONTENTS.—The item relating priate media. an underground storage tank system. to section 9010 in table of contents for the ‘‘(2) FINANCIAL INCENTIVE.—The Adminis- ‘‘(2) CONSIDERATIONS.—The guidelines de- trator may award to a State that develops a scribed in paragraph (1) shall take into ac- Solid Waste Disposal Act is amended to read report described in paragraph (1), in addition count— as follows: to any other funds that the State is entitled ‘‘(A) State training programs in existence ‘‘Sec. 9010. Operator training.’’. to receive under this subtitle, not more than as of the date of publication of the guide- SEC. 1525. REMEDIATION FROM OXYGENATED $50,000, to be used to carry out the report. lines; FUEL ADDITIVES. ‘‘(3) NOT A SAFE HARBOR.—This subsection ‘‘(B) training programs that are being em- Section 9003(h) of the Solid Waste Disposal does not relieve any person from any obliga- ployed by tank owners and tank operators as Act (42 U.S.C. 6991b(h)) is amended as fol- tion or requirement under this subtitle.’’. of the date of enactment of the Underground lows: (1) In paragraph (7)(A)— (c) PUBLIC RECORD.—Section 9002 of the Storage Tank Compliance Act of 2005; Solid Waste Disposal Act (42 U.S.C. 6991a) is (A) by striking ‘‘paragraphs (1) and (2) of ‘‘(C) the high turnover rate of tank opera- amended by adding at the end the following: this subsection’’ and inserting ‘‘paragraphs tors and other personnel; ‘‘(d) PUBLIC RECORD.— (1), (2), and (12)’’ ; and ‘‘(D) the frequency of improvement in un- ‘‘(1) IN GENERAL.—The Administrator shall derground storage tank equipment tech- (B) by striking ‘‘and including the authori- require each State that receives Federal nology; ties of paragraphs (4), (6), and (8) of this sub- funds to carry out this subtitle to maintain, ‘‘(E) the nature of the businesses in which section’’ and inserting ‘‘and the authority update at least annually, and make available the tank operators are engaged; under sections 9011 and 9012 and paragraphs to the public, in such manner and form as ‘‘(F) the substantial differences in the (4), (6), and (8),’’. the Administrator shall prescribe (after con- scope and length of training needed for the (2) By adding at the end the following: sultation with States), a record of under- different classes of persons described in sub- ‘‘(12) REMEDIATION OF OXYGENATED FUEL ground storage tanks regulated under this paragraphs (A), (B), and (C) of paragraph (1); CONTAMINATION.— subtitle. ‘‘(A) IN GENERAL.—The Administrator and and ‘‘(2) CONSIDERATIONS.—To the maximum ‘‘(G) such other factors as the Adminis- the States may use funds made available extent practicable, the public record of a trator determines to be necessary to carry under section 9014(2)(B) to carry out correc- State, respectively, shall include, for each out this section. tive actions with respect to a release of a year— ‘‘(b) STATE PROGRAMS.— fuel containing an oxygenated fuel additive ‘‘(A) the number, sources, and causes of un- ‘‘(1) IN GENERAL.—Not later than 2 years that presents a threat to human health or derground storage tank releases in the State; after the date on which the Administrator welfare or the environment. ‘‘(B) the record of compliance by under- publishes the guidelines under subsection ‘‘(B) APPLICABLE AUTHORITY.—The Admin- ground storage tanks in the State with— (a)(1), each State that receives funding under istrator or a State shall carry out subpara- ‘‘(i) this subtitle; or this subtitle shall develop State-specific graph (A) in accordance with paragraph (2), ‘‘(ii) an applicable State program approved training requirements that are consistent and in the case of a State, in accordance under section 9004; and with the guidelines developed under sub- with a cooperative agreement entered into ‘‘(C) data on the number of underground section (a)(1). by the Administrator and the State under storage tank equipment failures in the ‘‘(2) REQUIREMENTS.—State requirements paragraph (7).’’. State.’’. described in paragraph (1) shall— SEC. 1526. RELEASE PREVENTION, COMPLIANCE, (d) INCENTIVE FOR PERFORMANCE.—Section ‘‘(A) be consistent with subsection (a); AND ENFORCEMENT. 9006 of the Solid Waste Disposal Act (42 ‘‘(B) be developed in cooperation with tank (a) RELEASE PREVENTION AND COMPLI- U.S.C. 6991e) is amended by adding at the end owners and tank operators; ANCE.—Subtitle I of the Solid Waste Disposal the following: ‘‘(C) take into consideration training pro- Act (42 U.S.C. 6991 et seq.) is amended by ‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of grams implemented by tank owners and tank adding at the end the following: the following may be taken into account in operators as of the date of enactment of this ‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PRE- determining the terms of a civil penalty section; and VENTION AND COMPLIANCE. under subsection (d): ‘‘(D) be appropriately communicated to ‘‘Funds made available under section ‘‘(1) The compliance history of an owner or tank owners and operators. 9014(2)(D) from the Trust Fund may be used operator in accordance with this subtitle or ‘‘(3) FINANCIAL INCENTIVE.—The Adminis- to conduct inspections, issue orders, or bring a program approved under section 9004. trator may award to a State that develops actions under this subtitle— ‘‘(2) Any other factor the Administrator and implements requirements described in ‘‘(1) by a State, in accordance with a grant considers appropriate.’’. paragraph (1), in addition to any funds that or cooperative agreement with the Adminis- (e) TABLE OF CONTENTS.—The table of con- the State is entitled to receive under this trator, of State regulations pertaining to un- tents for such subtitle I is amended by add- subtitle, not more than $200,000, to be used to derground storage tanks regulated under ing the following new item at the end there- carry out the requirements. this subtitle; and of: ‘‘(c) TRAINING.—All persons that are sub- ‘‘(2) by the Administrator, for tanks regu- ‘‘Sec. 9011. Use of funds for release preven- ject to the operator training requirements of lated under this subtitle (including under a tion and compliance.’’. subsection (a) shall— State program approved under section SEC. 1527. DELIVERY PROHIBITION. ‘‘(1) meet the training requirements devel- 9004).’’. (a) IN GENERAL.—Subtitle I of the Solid oped under subsection (b); and (b) GOVERNMENT-OWNED TANKS.—Section Waste Disposal Act (42 U.S.C. 6991 et seq.) is ‘‘(2) repeat the applicable requirements de- 9003 of the Solid Waste Disposal Act (42 amended by adding at the end the following: veloped under subsection (b), if the tank for U.S.C. 6991b) is amended by adding at the end ‘‘SEC. 9012. DELIVERY PROHIBITION. which they have primary daily on-site man- the following: ‘‘(a) REQUIREMENTS.—

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‘‘(1) PROHIBITION OF DELIVERY OR DEPOSIT.— prohibition would jeopardize the availability reasonable service charge). The reasonable Beginning 2 years after the date of enact- of, or access to, fuel in any rural and remote service charges referred to in this subsection ment of this section, it shall be unlawful to areas. include, but are not limited to, fees or deliver to, deposit into, or accept a regulated ‘‘(B) APPLICABILITY OF LIMITATION.—The charges assessed in connection with the substance into an underground storage tank limitation under subparagraph (A) shall processing and issuance of permits, renewal at a facility which has been identified by the apply only during the 180-day period fol- of permits, amendments to permits, review Administrator or a State implementing lowing the date of a determination by the of plans, studies, and other documents, and agency to be ineligible for fuel delivery or Administrator or the appropriate State that inspection and monitoring of facilities, as deposit. exercising the authority of paragraph (3) is well as any other nondiscriminatory charges ‘‘(2) GUIDANCE.—Within 1 year after the limited by subparagraph (A). that are assessed in connection with a Fed- date of enactment of this section, the Ad- ‘‘(b) EFFECT ON STATE AUTHORITY.—Noth- eral, State, interstate, or local underground ministrator and States that receive funding ing in this section shall affect the authority storage tank regulatory program. Neither under this subtitle shall, in consultation of a State to prohibit the delivery of a regu- the United States, nor any agent, employee, with the underground storage tank owner lated substance to an underground storage or officer thereof, shall be immune or ex- and product delivery industries, for territory tank. empt from any process or sanction of any for which they are the primary imple- ‘‘(c) DEFENSE TO VIOLATION.—A person State or Federal Court with respect to the menting agencies, publish guidelines detail- shall not be in violation of subsection (a)(1) enforcement of any such injunctive relief. No ing the specific processes and procedures if the underground storage tank into which a agent, employee, or officer of the United they will use to implement the provisions of regulated substance is delivered is not listed States shall be personally liable for any civil this section. The processes and procedures on the Administrator’s or the appropriate penalty under any Federal, State, interstate, include, at a minimum— State’s Prohibited Delivery Roster 7 cal- or local law concerning underground storage ‘‘(A) the criteria for determining which un- endar days prior to the delivery being tanks with respect to any act or omission derground storage tank facilities are ineli- made.’’. within the scope of the official duties of the gible for delivery or deposit; (b) ENFORCEMENT.—Section 9006(d)(2) of agent, employee, or officer. An agent, em- ‘‘(B) the mechanisms for identifying which such Act (42 U.S.C. 6991e(d)(2)) is amended as ployee, or officer of the United States shall facilities are ineligible for delivery or de- follows: be subject to any criminal sanction (includ- posit to the underground storage tank own- (1) By adding the following new subpara- ing, but not limited to, any fine or imprison- ing and fuel delivery industries; graph after subparagraph (D): ment) under any Federal or State law con- ‘‘(C) the process for reclassifying ineligible ‘‘(E) the delivery prohibition requirement cerning underground storage tanks, but no facilities as eligible for delivery or deposit; established by section 9012,’’. department, agency, or instrumentality of and (2) By adding the following new sentence at the executive, legislative, or judicial branch ‘‘(D) a delineation of, or a process for de- the end thereof: ‘‘Any person making or ac- of the Federal Government shall be subject termining, the specified geographic areas cepting a delivery or deposit of a regulated to any such sanction. The President may ex- subject to paragraph (4). substance to an underground storage tank at empt any underground storage tank of any ‘‘(3) DELIVERY PROHIBITION NOTICE.— an ineligible facility in violation of section department, agency, or instrumentality in ‘‘(A) ROSTER.—The Administrator and each 9012 shall also be subject to the same civil the executive branch from compliance with State implementing agency that receives penalty for each day of such violation.’’. such a requirement if he determines it to be funding under this subtitle shall establish (c) TABLE OF CONTENTS.—The table of con- in the paramount interest of the United within 24 months after the date of enactment tents for such subtitle I is amended by add- States to do so. No such exemption shall be of this section a Delivery Prohibition Roster ing the following new item at the end there- granted due to lack of appropriation unless listing underground storage tanks under the of: the President shall have specifically re- Administrator’s or the State’s jurisdiction quested such appropriation as a part of the ‘‘Sec. 9012. Delivery prohibition.’’. that are determined to be ineligible for de- budgetary process and the Congress shall livery or deposit pursuant to paragraph (2). SEC. 1528. FEDERAL FACILITIES. have failed to make available such requested ‘‘(B) NOTIFICATION.—The Administrator Section 9007 of the Solid Waste Disposal appropriation. Any exemption shall be for a and each State, as appropriate, shall make Act (42 U.S.C. 6991f) is amended to read as period not in excess of one year, but addi- readily known, to underground storage tank follows: tional exemptions may be granted for peri- owners and operators and to product delivery ‘‘SEC. 9007. FEDERAL FACILITIES. ods not to exceed one year upon the Presi- industries, the underground storage tanks ‘‘(a) IN GENERAL.—Each department, agen- dent’s making a new determination. The listed on a Delivery Prohibition Roster by: cy, and instrumentality of the executive, President shall report each January to the ‘‘(i) posting such Rosters, including the legislative, and judicial branches of the Fed- Congress all exemptions from the require- physical location and street address of each eral Government (1) having jurisdiction over ments of this section granted during the pre- listed underground storage tank, on official any underground storage tank or under- ceding calendar year, together with his rea- web sites and, if the Administrator or the ground storage tank system, or (2) engaged son for granting each such exemption. State so chooses, other electronic means; in any activity resulting, or which may re- ‘‘(b) REVIEW OF AND REPORT ON FEDERAL ‘‘(ii) updating these Rosters periodically; sult, in the installation, operation, manage- UNDERGROUND STORAGE TANKS.— and ment, or closure of any underground storage ‘‘(1) REVIEW.—Not later than 12 months ‘‘(iii) installing a tamper-proof tag, seal, or tank, release response activities related after the date of enactment of the Under- other device blocking the fill pipes of such thereto, or in the delivery, acceptance, or de- ground Storage Tank Compliance Act of 2005, underground storage tanks to prevent the posit of any regulated substance to an under- each Federal agency that owns or operates 1 delivery of product into such underground ground storage tank or underground storage or more underground storage tanks, or that storage tanks. tank system shall be subject to, and comply manages land on which 1 or more under- ‘‘(C) ROSTER UPDATES.—The Administrator with, all Federal, State, interstate, and local ground storage tanks are located, shall sub- and the State shall update the Delivery Pro- requirements, both substantive and proce- mit to the Administrator, the Committee on hibition Rosters as appropriate, but not less dural (including any requirement for permits Energy and Commerce of the United States than once a month on the first day of the or reporting or any provisions for injunctive House of Representatives, and the Com- month. relief and such sanctions as may be imposed mittee on the Environment and Public ‘‘(D) TAMPERING WITH DEVICE.— by a court to enforce such relief), respecting Works of the United States Senate a compli- ‘‘(i) PROHIBITION.—It shall be unlawful for underground storage tanks in the same man- ance strategy report that— any person, other than an authorized rep- ner, and to the same extent, as any person is ‘‘(A) lists the location and owner of each resentative of the Administrator or a State, subject to such requirements, including the underground storage tank described in this as appropriate, to remove, tamper with, de- payment of reasonable service charges. The paragraph; stroy, or damage a device installed by the Federal, State, interstate, and local sub- ‘‘(B) lists all tanks that are not in compli- Administrator or a State, as appropriate, stantive and procedural requirements re- ance with this subtitle that are owned or op- under subparagraph (B)(iii) of this sub- ferred to in this subsection include, but are erated by the Federal agency; section. not limited to, all administrative orders and ‘‘(C) specifies the date of the last inspec- ‘‘(ii) CIVIL PENALTIES.—Any person vio- all civil and administrative penalties and tion by a State or Federal inspector of each lating clause (i) of this subparagraph shall be fines, regardless of whether such penalties or underground storage tank owned or operated subject to a civil penalty not to exceed fines are punitive or coercive in nature or by the agency; $10,000 for each violation. are imposed for isolated, intermittent, or ‘‘(D) lists each violation of this subtitle re- ‘‘(4) LIMITATION.— continuing violations. The United States specting any underground storage tank ‘‘(A) RURAL AND REMOTE AREAS.—Subject hereby expressly waives any immunity oth- owned or operated by the agency; to subparagraph (B), the Administrator or a erwise applicable to the United States with ‘‘(E) describes the operator training that State shall not include an underground stor- respect to any such substantive or proce- has been provided to the operator and other age tank on a Delivery Prohibition Roster dural requirement (including, but not lim- persons having primary daily on-site man- under paragraph (3) if an urgent threat to ited to, any injunctive relief, administrative agement responsibility for the operation and public health, as determined by the Adminis- order or civil or administrative penalty or maintenance of underground storage tanks trator, does not exist and if such a delivery fine referred to in the preceding sentence, or owned or operated by the agency; and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00141 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.065 H20PT1 H2294 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(F) describes the actions that have been underground storage tanks and connected State, as appropriate, to be no less protec- and will be taken to ensure compliance for pipes comprising such system. tive of human health and the environment.’’. each underground storage tank identified ‘‘(C) In the case of a replacement of an ex- (b) EFFECTIVE DATE.—This subsection shall under subparagraph (B). isting underground storage tank or existing take effect 18 months after the date of enact- ‘‘(2) NOT A SAFE HARBOR.—This subsection piping connected to the underground storage ment of this subsection does not relieve any person from any obliga- tank, subparagraph (A) shall apply only to (c) PROMULGATION OF REGULATIONS OR tion or requirement under this subtitle.’’. the specific underground storage tank or pip- GUIDELINES.—The Administrator shall issue regulations or guidelines implementing the SEC. 1529. TANKS ON TRIBAL LANDS. ing being replaced, not to other underground requirements of this subsection, including (a) IN GENERAL.—Subtitle I of the Solid storage tanks and connected pipes com- guidance to differentiate between the terms Waste Disposal Act (42 U.S.C. 6991 et seq.) is prising such system. ‘‘repair’’ and ‘‘replace’’ for the purposes of amended by adding the following at the end ‘‘(D) Each installation of a new motor fuel section 9003(i)(1) of the Solid Waste Disposal thereof: dispenser system, after the effective date of this subsection, shall include under-dis- Act. ‘‘SEC. 9013. TANKS ON TRIBAL LANDS. (d) PENALTIES.—Section 9006(d)(2) of such ‘‘(a) STRATEGY.—The Administrator, in co- penser spill containment if the new dispenser is within 1,000 feet of any existing commu- Act (42 U.S.C. 6991e(d)(2)) is amended as fol- ordination with Indian tribes, shall, not lows: later than 1 year after the date of enactment nity water system or any existing potable drinking water well. (1) By striking ‘‘or’’ at the end of subpara- of this section, develop and implement a graph (B). strategy— ‘‘(E) This paragraph shall not apply to re- pairs to an underground storage tank, pip- (2) By inserting ‘‘; or’’ at the end of sub- ‘‘(1) giving priority to releases that present paragraph (C). the greatest threat to human health or the ing, or dispenser that are meant to restore a tank, pipe, or dispenser to operating condi- (3) By adding the following new subpara- environment, to take necessary corrective tion graph after subparagraph (C): action in response to releases from leaking ‘‘(F) As used in this subsection: ‘‘(D) the requirements established in sec- underground storage tanks located wholly ‘‘(i) The term ‘secondarily contained’ tion 9003(i),’’. within the boundaries of— means a release detection and prevention SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. ‘‘(A) an Indian reservation; or system that meets the requirements of 40 (a) IN GENERAL.—Subtitle I of the Solid ‘‘(B) any other area under the jurisdiction CFR 280.43(g), but shall not include under- Waste Disposal Act (42 U.S.C. 6991 et seq.) is of an Indian tribe; and dispenser spill containment or control sys- amended by adding at the end the following: ‘‘(2) to implement and enforce require- tems. ‘‘SEC. 9014. AUTHORIZATION OF APPROPRIA- ments concerning underground storage tanks ‘‘(ii) The term ‘underground storage tank’ TIONS. located wholly within the boundaries of— has the meaning given to it in section 9001, ‘‘There are authorized to be appropriated ‘‘(A) an Indian reservation; or except that such term does not include tank to the Administrator the following amounts: ‘‘(B) any other area under the jurisdiction combinations or more than a single under- ‘‘(1) To carry out subtitle I (except sections of an Indian tribe. ground pipe connected to a tank. 9003(h), 9005(c), 9011 and 9012) $50,000,000 for ‘‘(b) REPORT.—Not later than 2 years after ‘‘(iii) The term ‘installation of a new each of fiscal years 2005 through 2009. the date of enactment of this section, the motor fuel dispenser system’ means the in- ‘‘(2) From the Trust Fund, notwithstanding Administrator shall submit to Congress a re- stallation of a new motor fuel dispenser and section 9508(c)(1) of the Internal Revenue port that summarizes the status of imple- the equipment necessary to connect the dis- Code of 1986: mentation and enforcement of this subtitle penser to the underground storage tank sys- ‘‘(A) to carry out section 9003(h) (except in areas located wholly within— tem, but does not mean the installation of a section 9003(h)(12)) $200,000,000 for each of fis- ‘‘(1) the boundaries of Indian reservations; motor fuel dispenser installed separately cal years 2005 through 2009; and from the equipment need to connect the dis- ‘‘(B) to carry out section 9003(h)(12), ‘‘(2) any other areas under the jurisdiction penser to the underground storage tank sys- $200,000,000 for each of fiscal years 2005 of an Indian tribe. tem. through 2009; The Administrator shall make the report ‘‘(G) The Administrator may issue regula- ‘‘(C) to carry out sections 9004(f) and 9005(c) under this subsection available to the public. tions or guidelines implementing the re- $100,000,000 for each of fiscal years 2005 ‘‘(c) NOT A SAFE HARBOR.—This section quirements of this subsection. through 2009; and does not relieve any person from any obliga- ‘‘(2) EVIDENCE OF FINANCIAL RESPONSIBILITY ‘‘(D) to carry out sections 9011 and 9012 tion or requirement under this subtitle. AND CERTIFICATION.— $55,000,000 for each of fiscal years 2005 ‘‘(d) STATE AUTHORITY.—Nothing in this ‘‘(A) MANUFACTURER AND INSTALLER FINAN- through 2009.’’. section applies to any underground storage CIAL RESPONSIBILITY.—A person that manu- (b) TABLE OF CONTENTS.—The table of con- tank that is located in an area under the ju- factures an underground storage tank or pip- tents for such subtitle I is amended by add- risdiction of a State, or that is subject to ing for an underground storage tank system ing the following new item at the end there- regulation by a State, as of the date of en- or that installs an underground storage tank of: actment of this section.’’. system is required to maintain evidence of ‘‘Sec. 9014. Authorization of appropria- (b) TABLE OF CONTENTS.—The table of con- financial responsibility under section 9003(d) tions.’’. tents for such subtitle I is amended by add- in order to provide for the costs of corrective SEC. 1532. CONFORMING AMENDMENTS. ing the following new item at the end there- actions directly related to releases caused by (a) IN GENERAL.—Section 9001 of the Solid of: improper manufacture or installation unless Waste Disposal Act (42 U.S.C. 6991) is amend- ‘‘Sec. 9013. Tanks on Tribal lands.’’. the person can demonstrate themselves to be ed as follows: SEC. 1530. ADDITIONAL MEASURES TO PROTECT already covered as an owner or operator of (1) By striking ‘‘For the purposes of this GROUNDWATER. an underground storage tank under section subtitle—’’ and inserting ‘‘In this subtitle:’’. (a) IN GENERAL.—Section 9003 of the Solid 9003. (2) By redesignating paragraphs (1), (2), (3), Waste Disposal Act (42 U.S.C. 6991b) is ‘‘(B) INSTALLER CERTIFICATION.—The Ad- (4), (5), (6), (7), and (8) as paragraphs (10), (7), amended by adding the following new sub- ministrator and each State that receives (4), (3), (8), (5), (2), and (6), respectively. section at the end: funding under this subtitle, as appropriate, (3) By inserting before paragraph (2) (as re- ‘‘(i) ADDITIONAL MEASURES TO PROTECT shall require that a person that installs an designated by paragraph (2) of this sub- GROUNDWATER FROM CONTAMINATION.—The underground storage tank system is— section) the following: Administrator shall require each State that ‘‘(i) certified or licensed by the tank and ‘‘(1) INDIAN TRIBE.— receives funding under this subtitle to re- piping manufacturer; ‘‘(A) IN GENERAL.—The term ‘Indian tribe’ quire one of the following: ‘‘(ii) certified or licensed by the Adminis- means any Indian tribe, band, nation, or ‘‘(1) TANK AND PIPING SECONDARY CONTAIN- trator or a State, as appropriate; other organized group or community that is MENT.—(A) Each new underground storage ‘‘(iii) has their underground storage tank recognized as being eligible for special pro- tank, or piping connected to any such new system installation certified by a registered grams and services provided by the United tank, installed after the effective date of professional engineer with education and ex- States to Indians because of their status as this subsection, or any existing underground perience in underground storage tank system Indians. storage tank, or existing piping connected to installation; ‘‘(B) INCLUSIONS.—The term ‘Indian tribe’ such existing tank, that is replaced after the ‘‘(iv) has had their installation of the un- includes an Alaska Native village, as defined effective date of this subsection, shall be sec- derground storage tank inspected and ap- in or established under the Alaska Native ondarily contained and monitored for leaks proved by the Administrator or the State, as Claims Settlement Act (43 U.S.C. 1601 et if the new or replaced underground storage appropriate; seq.); and’’. tank or piping is within 1,000 feet of any ex- ‘‘(v) compliant with a code of practice de- (4) By inserting after paragraph (8) (as re- isting community water system or any exist- veloped by a nationally recognized associa- designated by paragraph (2) of this sub- ing potable drinking water well. tion or independent testing laboratory and section) the following: ‘‘(B) In the case of a new underground stor- in accordance with the manufacturers in- ‘‘(9) TRUST FUND.—The term ‘Trust Fund’ age tank system consisting of one or more structions; or means the Leaking Underground Storage underground storage tanks and connected by ‘‘(vi) compliant with another method that Tank Trust Fund established by section 9508 piping, subparagraph (A) shall apply to all is determined by the Administrator or a of the Internal Revenue Code of 1986.’’.

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(b) CONFORMING AMENDMENTS.—The Solid a temporary extreme and unusual fuel and ‘‘(bb) does not increase the total number of Waste Disposal Act (42 U.S.C. 6901 and fol- fuel additive supply circumstances waiver fuels on the list published under subclause lowing) is amended as follows: shall be permitted only if— (II) as of September 1, 2004. (1) Section 9003(f) (42 U.S.C. 6991b(f)) is ‘‘(I) the waiver applies to the smallest geo- In the event that the total number of fuels amended— graphic area necessary to address the ex- on the list published under subclause (II) at (A) in paragraph (1), by striking treme and unusual fuel and fuel additive sup- the time of the Administrator’s consider- ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and ply circumstances; ation of a control or prohibition respecting a (B) in paragraphs (2) and (3), by striking ‘‘(II) the waiver is effective for a period of new fuel is lower than the total number of ‘‘9001(2)(A)’’ each place it appears and insert- 20 calendar days or, if the Administrator de- fuels on such list as of September 1, 2004, the ing ‘‘9001(7)(A)’’. termines that a shorter waiver period is ade- Administrator may approve a control or pro- (2) Section 9003(h) (42 U.S.C. 6991b(h)) is quate, for the shortest practicable time pe- hibition respecting a new fuel under this sub- amended in paragraphs (1), (2)(C), (7)(A), and riod necessary to permit the correction of clause if the Administrator, after consulta- (11) by striking ‘‘Leaking Underground Stor- the extreme and unusual fuel and fuel addi- tion with the Secretary of Energy, publishes age Tank Trust Fund’’ each place it appears tive supply circumstances and to mitigate in the Federal Register after notice and com- and inserting ‘‘Trust Fund’’. impact on air quality; ment a finding that, in the Administrator’s (3) Section 9009 (42 U.S.C. 6991h) is amend- ‘‘(III) the waiver permits a transitional pe- judgment, such control or prohibition re- ed— riod, the exact duration of which shall be de- specting a new fuel will not cause fuel supply (A) in subsection (a), by striking termined by the Administrator, after the or distribution interruptions or have a sig- ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and termination of the temporary waiver to per- nificant adverse impact on fuel producibility (B) in subsection (d), by striking ‘‘section mit wholesalers and retailers to blend down in the affected area or contiguous areas. 9001(1) (A) and (B)’’ and inserting ‘‘subpara- their wholesale and retail inventory; ‘‘(V) The Administrator shall have no au- graphs (A) and (B) of section 9001(10)’’. ‘‘(IV) the waiver applies to all persons in thority under this paragraph, when consid- SEC. 1533. TECHNICAL AMENDMENTS. the motor fuel distribution system; and ering any particular State’s implementation The Solid Waste Disposal Act is amended ‘‘(V) the Administrator has given public plan or a revision to that State’s implemen- as follows: notice to all parties in the motor fuel dis- tation plan, to approve any fuel unless that (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) tribution system, and local and State regu- fuel was, as of the date of such consider- is amended by striking ‘‘sustances’’ and in- lators, in the State or region to be covered ation, approved in at least one State imple- serting ‘‘substances’’. by the waiver. mentation plan in the applicable Petroleum (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is The term ‘motor fuel distribution system’ as Administration for Defense District. How- amended by striking ‘‘subsection (c) and (d) used in this clause shall be defined by the ever, the Administrator may approve as part of this section’’ and inserting ‘‘subsections Administrator through rulemaking. of a State implementation plan or State im- (c) and (d)’’. ‘‘(iv) Within 180 days of the date of enact- plementation plan revision a fuel with a (3) Section 9004(a) (42 U.S.C. 6991c(a)) is ment of this clause, the Administrator shall summertime Reid Vapor Pressure of 7.0 psi. amended by striking ‘‘in 9001(2) (A) or (B) or promulgate regulations to implement In no event shall such approval by the Ad- both’’ and inserting ‘‘in subparagraph (A) or clauses (ii) and (iii). ministrator cause an increase in the total (B) of section 9001(7)’’. ‘‘(v) Nothing in this subparagraph shall— number of fuels on the list published under (4) Section 9005 (42 U.S.C. 6991d) is amend- ‘‘(I) limit or otherwise affect the applica- subclause (II). ed— tion of any other waiver authority of the Ad- ‘‘(VI) Nothing in this clause shall be con- (A) in subsection (a), by striking ‘‘study ministrator pursuant to this section or pur- strued to have any effect regarding any taking’’ and inserting ‘‘study, taking’’; suant to a regulation promulgated pursuant available authority of States to require the (B) in subsection (b)(1), by striking to this section; and use of any fuel additive registered in accord- ‘‘relevent’’ and inserting ‘‘relevant’’; and ‘‘(II) subject any State or person to an en- ance with subsection (b), including any fuel (C) in subsection (b)(4), by striking forcement action, penalties, or liability sole- additive registered in accordance with sub- ‘‘Evironmental’’ and inserting ‘‘Environ- ly arising from actions taken pursuant to section (b) after the enactment of this sub- mental’’. the issuance of a waiver under this subpara- clause.’’. graph.’’. Subtitle C—Boutique Fuels (c) STUDY AND REPORT TO CONGRESS ON (b) LIMIT ON NUMBER OF BOUTIQUE FUELS.— BOUTIQUE FUELS.— SEC. 1541. REDUCING THE PROLIFERATION OF Section 211(c)(4)(C) of the Clean Air Act (42 (1) JOINT STUDY.—The Administrator of the BOUTIQUE FUELS. U.S.C. 7545(c)(4)), as amended by subsection Environmental Protection Agency and the (a) TEMPORARY WAIVERS DURING SUPPLY (a), is further amended by adding at the end Secretary of Energy shall undertake a study EMERGENCIES.—Section 211(c)(4)(C) of the the following: Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is ‘‘(v)(I) The Administrator shall have no au- of the effects on air quality, on the number amended by inserting ‘‘(i)’’ after ‘‘(C)’’ and thority, when considering a State implemen- of fuel blends, on fuel availability, on fuel by adding the following new clauses at the tation plan or a State implementation plan fungibility, and on fuel costs of the State end thereof: revision, to approve under this paragraph plan provisions adopted pursuant to section ‘‘(ii) The Administrator may temporarily any fuel included in such plan or revision if 211(c)(4)(C) of the Clean Air Act (42 U.S.C. waive a control or prohibition respecting the the effect of such approval increases the 7545(c)(4)(C)). use of a fuel or fuel additive required or reg- total number of fuels approved under this (2) FOCUS OF STUDY.—The primary focus of ulated by the Administrator pursuant to sub- paragraph as of September 1, 2004, in all the study required under paragraph (1) shall section (c), (h), (i), (k), or (m) of this section State implementation plans. be to determine how to develop a Federal or prescribed in an applicable implementa- ‘‘(II) The Administrator, in consultation fuels system that maximizes motor fuel tion plan under section 110 approved by the with the Secretary of Energy, shall deter- fungibility and supply, preserves air quality Administrator under clause (i) of this sub- mine the total number of fuels approved standards, and reduces motor fuel price vola- paragraph if, after consultation with, and under this paragraph as of September 1, 2004, tility that results from the proliferation of concurrence by, the Secretary of Energy, the in all State implementation plans and shall boutique fuels, and to recommend to Con- Administrator determines that— publish a list of such fuels, including the gress such legislative changes as are nec- ‘‘(I) extreme and unusual fuel or fuel addi- states and Petroleum Administration for De- essary to implement such a system. The tive supply circumstances exist in a State or fense District in which they are used, in the study should include the impacts on overall region of the Nation which prevent the dis- Federal Register for public review and com- energy supply, distribution, and use as a re- tribution of an adequate supply of the fuel or ment no later than 90 days after enactment. sult of the legislative changes recommended. fuel additive to consumers; ‘‘(III) The Administrator shall remove a (3) RESPONSIBILITY OF ADMINISTRATOR.—In ‘‘(II) such extreme and unusual fuel and fuel from the list published under subclause carrying out the study required by this sec- fuel additive supply circumstances are the (II) if a fuel ceases to be included in a State tion, the Administrator shall coordinate ob- result of a natural disaster, an Act of God, a implementation plan or if a fuel in a State taining comments from affected parties in- pipeline or refinery equipment failure, or an- implementation plan is identical to a Fed- terested in the air quality impact assess- other event that could not reasonably have eral fuel formulation implemented by the ment portion of the study. The Adminis- been foreseen or prevented and not the lack Administrator, but the Administrator shall trator shall use sound and objective science of prudent planning on the part of the sup- not reduce the total number of fuels author- practices, shall consider the best available pliers of the fuel or fuel additive to such ized under the list published under subclause science, and shall consider and include a de- State or region; and (II). scription of the weight of the scientific evi- ‘‘(III) it is in the public interest to grant ‘‘(IV) Subclause (I) shall not limit the Ad- dence. the waiver (for example, when a waiver is ministrator’s authority to approve a control (4) RESPONSIBILITY OF SECRETARY.—In car- necessary to meet projected temporary or prohibition respecting any new fuel under rying out the study required by this section, shortfalls in the supply of the fuel or fuel ad- this paragraph in a State implementation the Secretary shall coordinate obtaining ditive in a State or region of the Nation plan or revision to a State implementation comments from affected parties interested in which cannot otherwise be compensated for). plan if such new fuel: the fuel availability, number of fuel blends, ‘‘(iii) If the Administrator makes the de- ‘‘(aa) completely replaces a fuel on the list fuel fungibility and fuel costs portion of the terminations required under clause (ii), such published under subclause (II); or study.

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(5) REPORT TO CONGRESS.—The Adminis- plications of the widespread adoption of tele- shall transmit to Congress a report that ex- trator and the Secretary jointly shall submit commuting by Federal employees in the amines the feasibility of promoting collabo- the results of the study required by this sec- United States. rations between large institutions of higher tion in a report to the Congress not later (b) REQUIRED SUBJECTS OF STUDY.—The education and small institutions of higher than 12 months after the date of the enact- study required by subsection (a) shall ana- education through grants, contracts, and co- ment of this Act, together with any rec- lyze the following subjects in relation to the operative agreements made by the Secretary ommended regulatory and legislative energy saving potential of telecommuting by for energy projects. The Secretary shall also changes. Such report shall be submitted to Federal employees: consider providing incentives for the inclu- the Committee on Energy and Commerce of (1) Reductions of energy use and energy sion of small institutions of higher edu- the House of Representatives and the Com- costs in commuting and regular office heat- cation, including minority-serving institu- mittee on Environment and Public Works of ing, cooling, and other operations. tions, in energy research grants, contracts, the Senate. (2) Other energy reductions accomplished and cooperative agreements. (6) AUTHORIZATION OF APPROPRIATIONS.— by telecommuting. SEC. 1611. RELIABILITY AND CONSUMER PROTEC- There is authorized to be appropriated joint- (3) Existing regulatory barriers that ham- TION ASSESSMENT. ly to the Administrator and the Secretary per telecommuting, including barriers to Not later than 5 years after the date of en- $500,000 for the completion of the study re- broadband telecommunications services de- actment of this Act, and each 5 years there- quired under this subsection. ployment. after, the Federal Energy Regulatory Com- (d) DEFINITIONS.—In this section: (4) Collateral benefits to the environment, mission shall assess the effects of the exemp- (1) The term ‘‘Administrator’’ means the family life, and other values. tion of electric cooperatives and govern- Administrator of the Environmental Protec- (c) REPORT REQUIRED.—The Secretary shall ment-owned utilities from Commission regu- tion Agency. submit to the President and Congress a re- lation under section 201(f) of the Federal (2) The term ‘‘Secretary’’ means the Sec- port on the study required by this section Power Act. The assessment shall include any retary of Energy. not later than 6 months after the date of en- effects on— (3) The term ‘‘fuel’’ means gasoline, diesel actment of this Act. Such report shall in- (1) reliability of interstate electric trans- fuel, and any other liquid petroleum product clude a description of the results of the anal- mission networks; commercially known as gasoline and diesel ysis of each of the subject described in sub- (2) benefit to consumers, and efficiency, of fuel for use in highway and nonroad motor section (b). competitive wholesale electricity markets; (d) DEFINITIONS.—As used in this section: vehicles. (3) just and reasonable rates for electricity (1) SECRETARY.—The term ‘‘Secretary’’ (4) The term ‘‘a control or prohibition re- consumers; and means the Secretary of Energy. specting a new fuel’’ means a control or pro- (4) the ability of the Commission to pro- (2) COMMISSION.—The term ‘‘Commission’’ hibition on the formulation, composition, or tect electricity consumers. means the Federal Communications Com- emissions characteristics of a fuel that If the Commission finds that the 201(f) ex- mission. would require the increase or decrease of a emption results in adverse effects on con- (3) NTIA.—The term ‘‘NTIA’’ means the constituent in gasoline or diesel fuel. sumers or electric reliability, the Commis- National Telecommunications and Informa- TITLE XVI—STUDIES sion shall make appropriate recommenda- tion Administration of the Department of tions to Congress pursuant to section 311 of SEC. 1601. STUDY ON INVENTORY OF PETROLEUM Commerce. the Federal Power Act. AND NATURAL GAS STORAGE. ELECOMMUTING (4) T .—The term ‘‘telecom- SEC. 1612. REPORT ON ENERGY INTEGRATION (a) DEFINITION.—For purposes of this sec- muting’’ means the performance of work WITH LATIN AMERICA. tion ‘‘petroleum’’ means crude oil, motor functions using communications tech- The Secretary of Energy shall submit an gasoline, jet fuel, distillates, and propane. nologies, thereby eliminating or substan- annual report to the Committee on Energy (b) STUDY.—The Secretary of Energy shall tially reducing the need to commute to and and Commerce of the United States House of conduct a study on petroleum and natural from traditional worksites. Representatives and to the Committee on gas storage capacity and operational inven- (5) FEDERAL EMPLOYEE.—The term ‘‘Fed- Energy and Natural Resources of the United tory levels, nationwide and by major geo- eral employee’’ has the meaning provided the States Senate concerning the status of en- graphical regions. term ‘‘employee’’ by section 2105 of title 5, ergy export development in Latin America (c) CONTENTS.—The study shall address— United States Code. and efforts by the Secretary and other de- (1) historical normal ranges for petroleum SEC. 1607. LIHEAP REPORT. partments and agencies of the United States and natural gas inventory levels; Not later than 1 year after the date of en- to promote energy integration with Latin (2) historical and projected storage capac- actment of this Act, the Secretary of Health America. The report shall contain a detailed ity trends; and Human Services shall transmit to Con- analysis of the status of energy export devel- (3) estimated operation inventory levels gress a report on how the Low-Income Home opment in Mexico and a description of all below which outages, delivery slowdown, ra- Energy Assistance Program could be used significant efforts by the Secretary and tioning, interruptions in service, or other in- more effectively to prevent loss of life from other departments and agencies to promote a dicators of shortage begin to appear; extreme temperatures. In preparing such re- constructive relationship with Mexico re- (4) explanations for inventory levels drop- port, the Secretary shall consult with appro- garding the development of that nation’s en- ping below normal ranges; and priate officials in all 50 States and the Dis- ergy capacity. In particular this report shall (5) the ability of industry to meet United trict of Columbia. outline efforts the Secretary and other de- States demand for petroleum and natural gas SEC. 1608. OIL BYPASS FILTRATION TECH- partments and agencies have made to ensure without shortages or price spikes, when in- NOLOGY. that regulatory approval and oversight of ventory levels are below normal ranges. The Secretary of Energy and the Adminis- United States/Mexico border projects that (d) REPORT TO CONGRESS.—Not later than 1 trator of the Environmental Protection result in the expansion of Mexican energy year after the date of enactment of this Act, Agency shall— capacity are effectively coordinated across the Secretary of Energy shall submit a re- (1) conduct a joint study of the benefits of departments and with the Mexican govern- port to Congress on the results of the study, oil bypass filtration technology in reducing ment. including findings and any recommendations demand for oil and protecting the environ- SEC. 1613. LOW-VOLUME GAS RESERVOIR STUDY. for preventing future supply shortages. ment; (a) STUDY.—The Secretary of Energy shall SEC. 1605. STUDY OF ENERGY EFFICIENCY (2) examine the feasibility of using oil by- make a grant to an organization of oil and STANDARDS. pass filtration technology in Federal motor gas producing States, specifically those con- The Secretary of Energy shall contract vehicle fleets; and taining significant numbers of marginal oil with the National Academy of Sciences for a (3) include in such study, prior to any de- and natural gas wells, for conducting an an- study, to be completed within 1 year after termination of the feasibility of using oil by- nual study of low-volume natural gas res- the date of enactment of this Act, to exam- pass filtration technology, the evaluation of ervoirs. Such organization shall work with ine whether the goals of energy efficiency products and various manufacturers. the State geologist of each State being stud- standards are best served by measurement of SEC. 1609. TOTAL INTEGRATED THERMAL SYS- ied. energy consumed, and efficiency improve- TEMS. (b) CONTENTS.—The studies under this sec- ments, at the actual site of energy consump- The Secretary of Energy shall— tion shall— tion, or through the full fuel cycle, begin- (1) conduct a study of the benefits of total (1) determine the status and location of ning at the source of energy production. The integrated thermal systems in reducing de- marginal wells and gas reservoirs; Secretary shall submit the report to Con- mand for oil and protecting the environ- (2) gather the production information of gress. ment; and these marginal wells and reservoirs; SEC. 1606. TELECOMMUTING STUDY. (2) examine the feasibility of using total (3) estimate the remaining producible re- (a) STUDY REQUIRED.—The Secretary, in integrated thermal systems in Department serves based on variable pipeline pressures; consultation with the Commission, the Di- of Defense and other Federal motor vehicle (4) locate low-pressure gathering facilities rector of the Office of Personnel Manage- fleets. and pipelines; ment, the Administrator of General Services, SEC. 1610. UNIVERSITY COLLABORATION. (5) recommend incentives which will en- and the Administrator of NTIA, shall con- Not later than 2 years after the date of en- able the continued production of these re- duct a study of the energy conservation im- actment of this Act, the Secretary of Energy sources;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00144 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.065 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2297 (6) produce maps and literature to dissemi- of forest land, woodland, and rangeland to set the costs incurred to purchase biomass nate to States to promote conservation of insect outbreaks, disease, and catastrophic for use by such facility. natural gas reserves; and fire present the greatest opportunity for (2) GRANT AMOUNTS.—A grant under this (7) evaluate the amount of natural gas that long-term forest health by creating a mosaic subsection may not exceed $20 per green ton is being wasted through the practice of vent- of species-mix and age distribution. Such of biomass delivered. ing or flaring of natural gas produced in as- prevention treatments are widely acknowl- (3) MONITORING OF GRANT RECIPIENT ACTIVI- sociation with crude oil well production. edged to be more successful and cost effec- TIES.—As a condition of a grant under this (c) DATA ANALYSIS.—Data development and tive than suppression treatments in the case subsection, the grant recipient shall keep analysis under this section shall be per- of insects, disease, and fire. such records as the Secretary concerned may formed by an institution of higher education (4) The byproducts of preventive treatment require to fully and correctly disclose the with GIS capabilities. If the organization re- (wood, brush, thinnings, chips, slash, and use of the grant funds and all transactions ceiving the grant under subsection (a) does other hazardous fuels) removed from forest involved in the purchase of biomass. Upon not have GIS capabilities, such organization lands, woodlands and rangelands represent notice by a representative of the Secretary shall contract with one or more entities an abundant supply of biomass for biomass- concerned, the grant recipient shall afford with— to-energy facilities and raw material for the representative reasonable access to the (1) technological capabilities and resources business. There are currently few markets facility that purchases or uses biomass and to perform advanced image processing, GIS for the extraordinary volumes of byproducts an opportunity to examine the inventory and programming, and data analysis; and being generated as a result of the necessary records of the facility. (2) the ability to— large-scale preventive treatment activities. (d) IMPROVED BIOMASS USE GRANT PRO- (A) process remotely sensed imagery with (5) The United States should— GRAM.— high spatial resolution; (A) promote economic and entrepreneurial (1) IN GENERAL.—The Secretary concerned (B) deploy global positioning systems; opportunities in using byproducts removed may make grants to persons to offset the (C) process and synthesize existing, vari- through preventive treatment activities re- cost of projects to develop or research oppor- able-format gas well, pipeline, gathering fa- lated to hazardous fuels reduction, disease, tunities to improve the use of, or add value cility, and reservoir data; and insect infestation; and to, biomass. In making such grants, the Sec- (D) create and query GIS databases with (B) develop and expand markets for tradi- retary concerned shall give preference to infrastructure location and attribute infor- tionally underused wood and biomass as an persons in preferred communities. mation; outlet for byproducts of preventive treat- (2) SELECTION.—The Secretary concerned (E) write computer programs to customize ment activities. shall select a grant recipient under para- relevant GIS software; (b) DEFINITIONS.—In this section: graph (1) after giving consideration to the (F) generate maps, charts, and graphs (1) BIOMASS.—The term ‘‘biomass’’ means anticipated public benefits of the project, in- which summarize findings from data re- trees and woody plants, including limbs, cluding the potential to develop thermal or search for presentation to different audi- tops, needles, and other woody parts, and by- electric energy resources or affordable en- ences; and products of preventive treatment, such as ergy, opportunities for the creation or ex- (G) deliver data in a variety of formats, in- wood, brush, thinnings, chips, and slash, that pansion of small businesses and micro-busi- cluding Internet Map Server for query and are removed— nesses, and the potential for new job cre- display, desktop computer display, and ac- (A) to reduce hazardous fuels; or ation. (B) to reduce the risk of or to contain dis- cess through handheld personal digital as- (3) GRANT AMOUNT.—A grant under this ease or insect infestation. sistants. subsection may not exceed $500,000. NDIAN TRIBE (d) AUTHORIZATION OF APPROPRIATIONS.— (2) I .—The term ‘‘Indian tribe’’ (e) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to has the meaning given the term in section There are authorized to be appropriated the Secretary of Energy for carrying out this 4(e) of the Indian Self-Determination and $50,000,000 for each of the fiscal years 2006 section— Education Assistance Act (25 U.S.C. 450b(e)). through 2016 to carry out this section. (1) $1,500,000 for fiscal year 2006; and (3) PERSON.—The term ‘‘person’’ includes— (f) REPORT.—Not later than October 1, 2010, (2) $450,000 for each of the fiscal years 2007 (A) an individual; the Secretary of Agriculture, in consultation through 2010. (B) a community (as determined by the with the Secretary of the Interior, shall sub- (e) DEFINITIONS.—For purposes of this sec- Secretary concerned); mit to the Committee on Energy and Nat- tion, the term ‘‘GIS’’ means geographic in- (C) an Indian tribe; ural Resources and the Committee on Agri- formation systems technology that facili- (D) a small business, micro-business, or a culture, Nutrition, and Forestry of the Sen- tates the organization and management of corporation that is incorporated in the ate and the Committee on Resources, the data with a geographic component. United States; and Committee on Energy and Commerce, and (E) a nonprofit organization. TITLE XVII—RENEWABLE ENERGY the Committee on Agriculture of the House (4) PREFERRED COMMUNITY.—The term of Representatives a report describing the re- SEC. 1701. GRANTS TO IMPROVE THE COMMER- ‘‘preferred community’’ means— CIAL VALUE OF FOREST BIOMASS sults of the grant programs authorized by FOR ELECTRIC ENERGY, USEFUL (A) any town, township, municipality, or this section. The report shall include the fol- HEAT, TRANSPORTATION FUELS, PE- other similar unit of local government (as lowing: TROLEUM-BASED PRODUCT SUB- determined by the Secretary concerned) (1) An identification of the size, type, and STITUTES, AND OTHER COMMER- that— the use of biomass by persons that receive CIAL PURPOSES. (i) has a population of not more than 50,000 grants under this section. (a) FINDINGS.—Congress finds the fol- individuals; and (2) The distance between the land from lowing: (ii) the Secretary concerned, in the sole which the biomass was removed and the fa- (1) Thousands of communities in the discretion of the Secretary concerned, deter- cility that used the biomass. United States, many located near Federal mines contains or is located near land, the (3) The economic impacts, particularly new lands, are at risk to wildfire. Approximately condition of which is at significant risk of job creation, resulting from the grants to 190,000,000 acres of land managed by the Sec- catastrophic wildfire, disease, or insect in- and operation of the eligible operations. retary of Agriculture and the Secretary of festation or which suffers from disease or in- SEC. 1702. ENVIRONMENTAL REVIEW FOR RE- the Interior are at risk of catastrophic fire sect infestation; or NEWABLE ENERGY PROJECTS. in the near future. The accumulation of (B) any county that— (a) COMPLIANCE WITH NEPA FOR RENEW- heavy forest fuel loads continues to increase (i) is not contained within a metropolitan ABLE ENERGY PROJECTS.—Notwithstanding as a result of disease, insect infestations, and statistical area; and any other law, in preparing an environ- drought, further raising the risk of fire each (ii) the Secretary concerned, in the sole mental assessment or environmental impact year. discretion of the Secretary concerned, deter- statement required under section 102 of the (2) In addition, more than 70,000,000 acres mines contains or is located near land, the National Environmental Policy Act of 1969 across all land ownerships are at risk to condition of which is at significant risk of (42 U.S.C. 4332) with respect to any action au- higher than normal mortality over the next catastrophic wildfire, disease, or insect in- thorizing a renewable energy project under 15 years from insect infestation and disease. festation or which suffers from disease or in- the jurisdiction of a Federal agency— High levels of tree mortality from insects sect infestation. (1) no Federal agency is required to iden- and disease result in increased fire risk, loss (5) SECRETARY CONCERNED.—The term ‘‘Sec- tify alternative project locations or actions of old growth, degraded watershed condi- retary concerned’’ means the Secretary of other than the proposed action and the no tions, and changes in species diversity and Agriculture or the Secretary of the Interior. action alternative; and productivity, as well as diminished fish and (c) BIOMASS COMMERCIAL USE GRANT PRO- (2) no Federal agency is required to ana- wildlife habitat and decreased timber values. GRAM.— lyze the environmental effects of alternative (3) Preventive treatments such as remov- (1) IN GENERAL.—The Secretary concerned locations or actions other than those sub- ing fuel loading, ladder fuels, and hazard may make grants to any person that owns or mitted by the project proponent. trees, planting proper species mix and restor- operates a facility that uses biomass as a (b) CONSIDERATION OF ALTERNATIVES.—In ing and protecting early successional habi- raw material to produce electric energy, sen- any environmental assessment or environ- tat, and other specific restoration treat- sible heat, transportation fuels, or sub- mental impact statement referred to in sub- ments designed to reduce the susceptibility stitutes for petroleum-based products to off- section (a), the Federal agency shall only

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identify and analyze the environmental ef- ‘‘(e) AREA SUBJECT TO LEASE FOR GEO- (2) CONVERSION.—The Secretary shall ap- fects and potential mitigation measures of— THERMAL RESOURCES.—A geothermal lease prove such an application and convert such a (1) the proposed action; and for the use of geothermal resources shall em- lease to a lease in accordance with the (2) the no action alternative. brace not more than the amount of acreage amendments by not later than 180 days after (c) PUBLIC COMMENT.—In preparing an envi- determined by the Secretary to be appro- receipt of such application, unless the Sec- ronmental assessment or environmental im- priate.’’. retary determines that the applicant is not a pact statement referred to in subsection (a), SEC. 1803. DIRECT USE. qualified applicant with respect to the lease. the Federal agency shall only consider pub- (a) FEES FOR DIRECT USE.—Section 5 of the (3) APPLICATION OF NEW LEASE TERMS.—The lic comments that specifically address the Geothermal Steam Act of 1970 (30 U.S.C. 1004) schedule of fees established under the preferred action and that are filed within 20 is amended— amendment made by subsection (a)(4) shall days after publication of a draft environ- (1) in paragraph (c) by redesignating sub- apply with respect to payments under a lease mental assessment or draft environmental paragraphs (1) and (2) as subparagraphs (A) converted under this subsection that are due impact statement. Notwithstanding any and (B); and owing to the United States on or after other law, compliance with this subsection is (2) by redesignating paragraphs (a) through July 16, 2003. deemed to satisfy section 102(2) of the Na- (d) in order as paragraphs (1) through (4); SEC. 1804. ROYALTIES AND NEAR-TERM PRODUC- tional Environmental Policy Act of 1969 (42 (3) by inserting ‘‘(a) IN GENERAL.—’’ after TION INCENTIVES. U.S.C. 4332(2)) and the applicable regulations ‘‘SEC. 5.’’; and (a) ROYALTY.—Section 5 of the Geothermal and administrative guidelines with respect (4) by adding at the end the following: Steam Act of 1970 (30 U.S.C. 1004) is further to proposed renewable energy projects. ‘‘(b) FEES FOR DIRECT USE.— amended— (d) RENEWABLE ENERGY PROJECT DE- ‘‘(1) IN GENERAL.—Notwithstanding sub- (1) in subsection (a) by striking paragraph FINED.—For purposes of this section, the section (a)(1), with respect to the direct use (1) and inserting the following: term ‘‘renewable energy project’’— of geothermal resources for purposes other ‘‘(1) a royalty on electricity produced using (1) means any proposal to utilize an energy than the commercial generation of elec- geothermal resources, other than direct use source other than nuclear power, coal, oil, or tricity, the Secretary of the Interior shall of geothermal resources, that shall be— natural gas; and establish a schedule of fees and collect fees ‘‘(A) not less than 1 percent and not more (2) includes the use of wind, solar, geo- pursuant to such a schedule in lieu of royal- than 2.5 percent of the gross proceeds from thermal, biomass, or tidal forces to generate ties. Notwithstanding section 102(a)(9) of the the sale of electricity produced from such re- energy. Federal Land Policy and Management Act of sources during the first 10 years of produc- SEC. 1703. SENSE OF CONGRESS REGARDING 1976 (43 U.S.C. 1701(a)(9)), the schedule of fees tion under the lease; and GENERATION CAPACITY OF ELEC- shall be based upon comparable non-Federal ‘‘(B) not less than 2 and not more than 5 TRICITY FROM RENEWABLE ENERGY percent of the gross proceeds from the sale of RESOURCES ON PUBLIC LANDS. fees charged for direct use of geothermal re- electricity produced from such resources It is the sense of the Congress that the sources within the State concerned. For di- during each year after such 10-year period;’’; Secretary of the Interior should, before the rect use by a State or local government for and end of the 10-year period beginning on the public purposes, the fee charged shall be (2) by adding at the end the following: date of enactment of this Act, seek to have nominal. Leases in existence on the date of ‘‘(c) FINAL REGULATION ESTABLISHING ROY- approved non-hydropower renewable energy enactment of this subsection shall be modi- ALTY RATES.—In issuing any final regulation projects located on the public lands with a fied in order to reflect the provisions of this establishing royalty rates under this section, generation capacity of at least 10,000 subsection. the Secretary shall seek— megawatts of electricity. ‘‘(2) FINAL REGULATION.—In issuing any final regulation establishing a schedule of ‘‘(1) to provide lessees a simplified admin- TITLE XVIII—GEOTHERMAL ENERGY fees under this subsection, the Secretary istrative system; SEC. 1801. SHORT TITLE. shall seek— ‘‘(2) to encourage new development; This title may be cited as the ‘‘John Rishel ‘‘(A) to provide lessees with a simplified ‘‘(3) to achieve the same long-term level of Geothermal Steam Act Amendments of administrative system; royalty revenues to States and counties as 2005’’. ‘‘(B) to encourage development of this un- the regulation in effect on the date of enact- SEC. 1802. COMPETITIVE LEASE SALE REQUIRE- derutilized energy resource on the Federal ment of this subsection; and MENTS. estate; and ‘‘(4) to reflect any change in profitability Section 4 of the Geothermal Steam Act of ‘‘(C) to contribute to sustainable economic of operations for which royalties will be paid 1970 (30 U.S.C. 1003) is amended to read as fol- development opportunities for host commu- due to the requirements imposed by Federal lows: nities.’’. agencies, including delays. ‘‘SEC. 4. LEASING PROCEDURES. (b) LEASING FOR DIRECT USE.—Section 4 of ‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ‘‘(a) NOMINATIONS.—The Secretary shall ac- the Geothermal Steam Act of 1970 (30 U.S.C. ELECTRICITY.—The Secretary may provide to cept nominations of lands available for leas- 1003) is further amended by adding at the end a lessee a credit against royalties owed ing at any time from qualified companies the following: under this Act, in an amount equal to the and individuals under this Act. ‘‘(f) LEASING FOR DIRECT USE OF GEO- value of electricity provided under contract ‘‘(b) COMPETITIVE LEASE SALE REQUIRED.— THERMAL RESOURCES.—Lands leased under to a State or county government that is en- The Secretary shall hold a competitive lease this Act exclusively for direct use of geo- titled to a portion of such royalties under sale at least once every 2 years for lands in thermal resources shall be leased to any section 20 of this Act, section 35 of the Min- a State which has nominations pending qualified applicant who first applies for such eral Leasing Act (30 U.S.C. 191), or section 6 under subsection (a) if such lands are other- a lease under regulations issued by the Sec- of the Mineral Leasing Act for Acquired wise available for leasing. Lands that are retary, if— Lands (30 U.S.C. 355), if— subject to a mining claim for which a plan of ‘‘(1) the Secretary publishes a notice of the ‘‘(1) the Secretary has approved in advance operations has been approved by the relevant lands proposed for leasing 60 days before the the contract between the lessee and the Federal land management agency are not date of the issuance of the lease; and State or county government for such in-kind available for competitive leasing. ‘‘(2) the Secretary does not receive in the payments; ‘‘(c) NONCOMPETITIVE LEASING.— 60-day period beginning on the date of such ‘‘(2) the contract establishes a specific ‘‘(1) REQUIREMENT.—The Secretary shall publication any nomination to include the methodology to determine the value of such make available for a period of 2 years for lands concerned in the next competitive credits; and noncompetitive leasing any tract for which a lease sale. ‘‘(3) the maximum credit will be equal to competitive lease sale is held, but for which ‘‘(g) AREA SUBJECT TO LEASE FOR DIRECT the royalty value owed to the State or coun- the Secretary does not receive any bids in a USE.—A geothermal lease for the direct use ty that is a party to the contract and the competitive lease sale. of geothermal resources shall embrace not electricity received will serve as the royalty ‘‘(2) STATES WITHOUT NOMINATIONS.—In any more than the amount of acreage determined payment from the Federal Government to State for which there are no nominations re- by the Secretary to be reasonably necessary that entity.’’. ceived under subsection (a) and having a for such proposed utilization.’’. (b) DISPOSAL OF MONEYS FROM SALES, BO- total acreage under lease or the subject of an (c) EXISTING LEASES WITH A DIRECT USE NUSES, ROYALTIES, AND RENTS.—Section 20 of application for lease of less than 10,000 acres, FACILITY.— the Geothermal Steam Act of 1970 (30 U.S.C. the Secretary may designate lands available (1) APPLICATION TO CONVERT.—Any lessee 1019) is amended to read as follows: for 2 years for noncompetitive leasing. under a lease under the Geothermal Steam ‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BO- ‘‘(d) LEASES SOLD AS A BLOCK.—If informa- Act of 1970 that was issued before the date of NUSES, RENTALS, AND ROYALTIES. tion is available to the Secretary indicating enactment of this Act may apply to the Sec- ‘‘(a) IN GENERAL.—Except with respect to a geothermal resource that could be pro- retary of the Interior, by not later than 18 lands in the State of Alaska, all monies re- duced as 1 unit can reasonably be expected to months after the date of enactment of this ceived by the United States from sales, bo- underlie more than 1 parcel to be offered in Act, to convert such lease to a lease for di- nuses, rentals, and royalties under this Act a competitive lease sale, the parcels for such rect utilization of geothermal resources in shall be paid into the Treasury of the United a resource may be offered for bidding as a accordance with the amendments made by States. Of amounts deposited under this sub- block in the competitive lease sale. this section. section, subject to the provisions of section

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00146 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.066 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2299 35 of the Mineral Leasing Act (30 U.S.C. ment of National Forest System lands under this Act regarding the status of all with- 191(b)) and section 5(a)(2) of this Act— section 6 of the Forest and Rangeland Re- drawals from leasing under the Geothermal ‘‘(1) 50 percent shall be paid to the State newable Resources Planning Act of 1974 (16 Steam Act of 1970 (30 U.S.C. 1001 et seq.) of within the boundaries of which the leased U.S.C. 1604) and public lands under section Federal lands, specifying for each such area lands or geothermal resources are or were lo- 202 of the Federal Land Policy and Manage- whether the basis for such withdrawal still cated; and ment Act of 1976 (43 U.S.C. 1712). Land and applies. ‘‘(2) 25 percent shall be paid to the County resource management plans and land use SEC. 1808. REIMBURSEMENT FOR COSTS OF NEPA within the boundaries of which the leased plans in effect under such sections on the ANALYSES, DOCUMENTATION, AND lands or geothermal resources are or were lo- date of the enactment of this subsection are STUDIES. cated. deemed to be adequate to proceed with the (a) IN GENERAL.—The Geothermal Steam ‘‘(b) USE OF PAYMENTS.—Amounts paid to a issuance of leases under this Act.’’. Act of 1970 (30 U.S.C. 1001 et seq.) is amended by adding at the end the following: State or county under subsection (a) shall be (b) LEASE APPLICATIONS PENDING ON JANU- used consistent with the terms of section 35 ARY 1, 2005.— ‘‘SEC. 30. REIMBURSEMENT FOR COSTS OF CER- TAIN ANALYSES, DOCUMENTATION, of the Mineral Leasing Act (30 U.S.C. 191).’’. (1) PRIORITY.—It shall be a priority for the AND STUDIES. (c) NEAR-TERM PRODUCTION INCENTIVE FOR Secretary of the Interior, and for the Sec- EXISTING LEASES.— ‘‘(a) IN GENERAL.—The Secretary of the In- retary of Agriculture with respect to Na- terior shall issue regulations under which (1) IN GENERAL.—Notwithstanding section tional Forest Systems lands, to ensure time- 5(a) of the Geothermal Steam Act of 1970, the the Secretary shall reimburse a person that ly completion of administrative actions nec- is a lessee, operator, operating rights owner, royalty required to be paid shall be 50 per- essary to process applications for geothermal cent of the amount of the royalty otherwise or applicant for any lease under this Act for leasing pending on January 1, 2005. reasonable amounts paid by the person for required, on any lease issued before the date (2) APPLICABLE LAW.—An application re- preparation for the Secretary by a con- of enactment of this Act that does not con- ferred to in paragraph (1), and any lease tractor or other person selected by the Sec- vert to new royalty terms under subsection issued pursuant to such an application— retary of any project-level analysis, docu- (e)— (A) except as provided in subparagraph (B), mentation, or related study required pursu- (A) with respect to commercial production shall be subject to this section as in effect on ant to the National Environmental Policy of energy from a facility that begins such January 1, 2005; or Act of 1969 (42 U.S.C. 4321 et seq.) with re- production in the 6-year period beginning on (B) at the election of the applicant, shall spect to the lease. the date of enactment of this Act; or be subject to this section as in effect on the ‘‘(b) CONDITIONS.—The Secretary may pro- (B) on qualified expansion geothermal en- effective date of this paragraph. vide reimbursement under subsection (a) ergy. SEC. 1806. COORDINATION OF GEOTHERMAL only if— (2) 4-YEAR APPLICATION.—Paragraph (1) ap- LEASING AND PERMITTING ON FED- ‘‘(1) adequate funding to enable the Sec- plies only to new commercial production of ERAL LANDS. retary to timely prepare the analysis, docu- energy from a facility in the first 4 years of (a) IN GENERAL.—Not later than 180 days mentation, or related study is not appro- such production. after the date of enactment of this section, priated; (d) DEFINITION OF QUALIFIED EXPANSION the Secretary of the Interior and the Sec- ‘‘(2) the person paid the costs voluntarily; GEOTHERMAL ENERGY.—In this section, the retary of Agriculture shall enter into and ‘‘(3) the person maintains records of its term ‘‘qualified expansion geothermal en- submit to Congress a memorandum of under- costs in accordance with regulations issued ergy’’ means geothermal energy produced standing in accordance with this section, the by the Secretary; from a generation facility for which— Geothermal Steam Act of 1970 (as amended ‘‘(4) the reimbursement is in the form of a (1) the production is increased by more by this Act), and other applicable laws, re- reduction in the Federal share of the royalty than 10 percent as a result of expansion of garding coordination of leasing and permit- required to be paid for the lease for which the facility carried out in the 6-year period ting for geothermal development of public the analysis, documentation, or related beginning on the date of enactment of this lands and National Forest System lands study is conducted, and is agreed to by the Act; and under their respective jurisdictions. Secretary and the person reimbursed prior to (2) such production increase is greater than (b) LEASE AND PERMIT APPLICATIONS.—The commencing the analysis, documentation, or 10 percent of the average production by the memorandum of understanding shall— related study; and facility during the 5-year period preceding (1) establish an administrative procedure ‘‘(5) the agreement required under para- the expansion of the facility (as such average for processing geothermal lease applications, graph (4) contains provisions— is adjusted to reflect any trend, in changes including lines of authority, steps in applica- ‘‘(A) reducing royalties owed on lease pro- in production during that period). tion processing, and time limits for applica- duction based on market prices; (e) ROYALTY UNDER EXISTING LEASES.— tion procession; ‘‘(B) stipulating an automatic termination (1) IN GENERAL.—Any lessee under a lease (2) establish a 5-year program for geo- of the royalty reduction upon recovery of issued under the Geothermal Steam Act of thermal leasing of lands in the National For- documented costs; and 1970 before the date of enactment of this Act est System, and a process for updating that ‘‘(C) providing a process by which the les- may modify the terms of the lease relating program every 5 years; and see may seek reimbursement for cir- to payment of royalties to comply with the (3) establish a program for reducing the cumstances in which production from the amendment made by subsection (a), by ap- backlog of geothermal lease application specified lease is not possible.’’. plying to the Secretary of the Interior by pending on January 1, 2005, by 90 percent (b) APPLICATION.—The amendment made by not later than 18 months after the date of en- within the 5-year period beginning on the this section shall apply with respect to an actment of this Act. date of enactment of this Act, including, as analysis, documentation, or a related study (2) APPLICATION OF MODIFICATION.—Such necessary, by— conducted on or after the date of enactment modification shall apply to any use of geo- (A) issuing leases, rejecting lease applica- of this Act for any lease entered into before, thermal resources to which the amendment tions for failure to comply with the provi- on, or after the date of enactment of this applies that occurs after the date of that ap- sions of the regulations under which they Act. plication. were filed, or determining that an original (c) DEADLINE FOR REGULATIONS.—The Sec- (3) CONSULTATION.—The Secretary— applicant (or the applicant’s assigns, heirs, retary shall issue regulations implementing (A) shall consult with the State and local or estate) is no longer interested in pursuing the amendment made by this section by not governments affected by any proposed later than 1 year after the date of enactment the lease application; changes in lease royalty terms under this of this Act. (B) making diligent efforts to directly con- subsection; and tact the lease applicants (including their SEC. 1809. ASSESSMENT OF GEOTHERMAL EN- (B) may establish royalty based on a gross ERGY POTENTIAL. heirs, assigns, or estates); and proceeds percentage within the range speci- The Secretary of Interior, acting through (C) ensuring that no lease application is re- fied in the amendment made by subsection the Director of the United States Geological jected except in compliance with all require- (a)(1) and with the concurrence of the lessee Survey and in cooperation with the States, ments regarding diligent direct contact. and the State. shall update the 1978 Assessment of Geo- (c) DATA RETRIEVAL SYSTEM.—The memo- thermal Resources, and submit that updated SEC. 1805. EXPEDITING ADMINISTRATIVE ACTION randum of understanding shall establish a FOR GEOTHERMAL LEASING. assessment to Congress— joint data retrieval system that is capable of (a) TREATMENT OF GEOTHERMAL LEASING (1) not later than 3 years after the date of tracking lease and permit applications and WITH RESPECT TO FEDERAL LAND MANAGE- enactment of this Act; and providing to the applicant information as to MENT PLAN REQUIREMENTS.—Section 15 of the (2) thereafter as the availability of data Geothermal Steam Act of 1970 (30 U.S.C. 1014) their status within the Departments of the and developments in technology warrant. is amended by adding at the end the fol- Interior and Agriculture, including an esti- SEC. 1810. COOPERATIVE OR UNIT PLANS. lowing: mate of the time required for administrative Section 18 of the Geothermal Steam Act of ‘‘(d) TREATMENT OF GEOTHERMAL LEASING action. 1970 (30 U.S.C. 1017) is amended to read as fol- UNDER FEDERAL LAND MANAGEMENT PLANS.— SEC. 1807. REVIEW AND REPORT TO CONGRESS. lows: Geothermal leasing and development of Fed- The Secretary of the Interior shall prompt- ‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREE- eral lands in accordance with this Act is ly review and report to Congress not later MENTS. deemed to be consistent with the manage- than 3 years after the date of enactment of ‘‘(a) ADOPTION OF UNITS BY LESSEES.—

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‘‘(1) IN GENERAL.—For the purpose of more tive or Unit Agreement and at least every 5 ‘‘(1) PRIMARY TERM.—A geothermal lease properly conserving the natural resources of years thereafter, the Secretary shall review shall be for a primary term of 10 years. any geothermal reservoir, field, or like area, each such Agreement and, after notice and ‘‘(2) INITIAL EXTENSION.—The Secretary or any part thereof (whether or not any part opportunity for comment, eliminate from in- shall extend the primary term of a geo- of the geothermal field, or like area, is then clusion in such Agreement any lands that thermal lease for 5 years if, for each year subject to any Unit Agreement (cooperative the Secretary determines are not reasonably after the fifth year of the lease— plan of development or operation)), lessees necessary for Unit operations under the ‘‘(A) the Secretary determined under sub- thereof and their representatives may unite Agreement. Such elimination shall be based section (c) that the lessee satisfied the work with each other, or jointly or separately on scientific evidence, and shall occur only if commitment requirements that applied to with others, in collectively adopting and op- it is determined by the Secretary to be for the lease for that year; or erating under a Unit Agreement for such the purpose of conserving and properly man- ‘‘(B) the lessee paid in accordance with field, or like area, or any part thereof includ- aging the geothermal resource. Any land so subsection (d) the value of any work that ing direct use resources, if determined and eliminated shall be eligible for an extension was not completed in accordance with those certified by the Secretary to be necessary or under subsection (g) of section 6 if it meets requirements. advisable in the public interest. A majority the requirements for such an extension. ‘‘(3) ADDITIONAL EXTENSION.—The Sec- ‘‘(g) DRILLING OR DEVELOPMENT CON- interest of lessees under any single lease retary shall extend the primary term of a TRACTS.—The Secretary may, on such condi- shall have the authority to commit that geothermal lease (after an initial extension tions as the Secretary may prescribe, ap- lease to a Unit Agreement. The Secretary of under paragraph (2)) for an additional 5 years prove drilling or development contracts the Interior may also initiate the formation if, for each year of the initial extension made by 1 or more lessees of geothermal under paragraph (2), the Secretary deter- of a Unit Agreement, if such action is in the leases, with 1 or more persons, associations, public interest. mined under subsection (c) that the lessee or corporations if, in the discretion of the satisfied the work commitment require- ‘‘(2) MODIFICATION OF LEASE REQUIREMENTS Secretary, the conservation of natural re- BY SECRETARY.—The Secretary may, in the ments that applied to the lease for that year. sources or the public convenience or neces- ‘‘(b) REQUIREMENT TO SATISFY ANNUAL discretion of the Secretary, and with the sity may require or the interests of the consent of the holders of leases involved, es- WORK COMMITMENT REQUIREMENT.— United States may be best served thereby. ‘‘(1) IN GENERAL.—The lessee for a geo- tablish, alter, change, or revoke rates of op- All leases operated under such approved erations (including drilling, operations, pro- thermal lease shall, for each year after the drilling or development contracts, and inter- fifth year of the lease, satisfy work commit- duction, and other requirements) of such ests thereunder, shall be excepted in deter- ment requirements prescribed by the Sec- leases and make conditions with reference to mining holdings or control under section 7. retary that apply to the lease for that year. such leases, with the consent of the lessees, ‘‘(h) COORDINATION WITH STATE GOVERN- ‘‘(2) PRESCRIPTION OF WORK COMMITMENT RE- in connection with the creation and oper- MENTS.—The Secretary shall coordinate QUIREMENTS.—The Secretary shall issue reg- ation of any such Unit Agreement as the unitization and pooling activities with the ulations prescribing minimum equivalent Secretary may deem necessary or proper to appropriate State agencies and shall ensure dollar value work commitment requirements secure the proper protection of the public in- that State leases included in any unitization for geothermal leases, that— terest. Leases with unlike lease terms or or pooling arrangement are treated equally ‘‘(A) require that a lessee, in each year royalty rates do not need to be modified to with Federal leases.’’. after the fifth year of the primary term of a be in the same unit. SEC. 1811. ROYALTY ON BYPRODUCTS. geothermal lease, diligently work to achieve ‘‘(b) REQUIREMENT OF PLANS UNDER NEW Section 5 of the Geothermal Steam Act of commercial utilization of geothermal re- LEASES.—The Secretary— 1970 (30 U.S.C. 1004) is further amended in sources under the lease; ‘‘(1) may provide that geothermal leases subsection (a) by striking paragraph (2) and ‘‘(B) describe work that qualifies to meet issued under this Act shall contain a provi- inserting the following: these requirements and factors, such as force sion requiring the lessee to operate under ‘‘(2) a royalty on any byproduct that is a majeure events, that suspend or modify the such a reasonable Unit Agreement; and mineral named in the first section of the work commitment obligation; ‘‘(2) may prescribe such an Agreement Mineral Leasing Act (30 U.S.C. 181), and that ‘‘(C) carry forward and apply to work com- under which such lessee shall operate, which is derived from production under the lease, mitment requirements for a year, work com- shall adequately protect the rights of all par- at the rate of the royalty that applies under pleted in any year in the preceding 3-year pe- ties in interest, including the United States. that Act to production of such mineral under riod that was in excess of the work required ‘‘(c) MODIFICATION OF RATE OF a lease under that Act;’’. to be performed in that preceding year; PROSPECTING, DEVELOPMENT, AND PRODUC- SEC. 1812. REPEAL OF AUTHORITIES OF SEC- ‘‘(D) establish transition rules for leases TION.—The Secretary may require that any RETARY TO READJUST TERMS, CON- issued before the date of the enactment of Agreement authorized by this section that DITIONS, RENTALS, AND ROYALTIES. this subsection, including terms under which applies to lands owned by the United States Section 8 of the Geothermal Steam Act of a lease that is near the end of its term on the contain a provision under which authority is 1970 (30 U.S.C. 1007) is amended by repealing date of enactment of this subsection may be vested in the Secretary, or any person, com- subsection (b), and by redesignating sub- extended for up to 2 years— mittee, or State or Federal officer or agency section (c) as subsection (b). ‘‘(i) to allow achievement of production as may be designated in the Agreement to SEC. 1813. CREDITING OF RENTAL TOWARD ROY- under the lease; or alter or modify from time to time the rate of ALTY. prospecting and development and the quan- Section 5 of the Geothermal Steam Act of ‘‘(ii) to allow the lease to be included in a tity and rate of production under such an 1970 (30 U.S.C. 1004) is further amended— producing unit; and Agreement. (1) in subsection (a)(2) by inserting ‘‘and’’ ‘‘(E) establish an annual payment that, at ‘‘(d) EXCLUSION FROM DETERMINATION OF after the semicolon at the end; the option of the lessee, may be exercised in HOLDING OR CONTROL.—Any lands that are (2) in subsection (a)(3) by striking ‘‘; and’’ lieu of meeting any work requirement for a subject to any Agreement approved or pre- and inserting a period; limited number of years that the Secretary scribed by the Secretary under this section (3) by striking paragraph (4) of subsection determines will not impair achieving dili- shall not be considered in determining hold- (a); and gent development of the geothermal re- ings or control under any provision of this (4) by adding at the end the following: source. Act. ‘‘(e) CREDITING OF RENTAL TOWARD ROY- ‘‘(3) GEOTHERMAL LEASE OVERLYING MINING ‘‘(e) POOLING OF CERTAIN LANDS.—If sepa- ALTY.—Any annual rental under this section CLAIM.— rate tracts of lands cannot be independently that is paid with respect to a lease before the ‘‘(A) EXEMPTION.—The lessee for a geo- developed and operated to use geothermal re- first day of the year for which the annual thermal lease of an area overlying an area sources pursuant to any section of this Act— rental is owed shall be credited to the subject to a mining claim for which a plan of ‘‘(1) such lands, or a portion thereof, may amount of royalty that is required to be paid operations has been approved by the relevant be pooled with other lands, whether or not under the lease for that year.’’. Federal land management agency is exempt owned by the United States, for purposes of SEC. 1814. LEASE DURATION AND WORK COMMIT- from annual work requirements established development and operation under a MENT REQUIREMENTS. under this Act, if development of the geo- Communitization Agreement providing for Section 6 of the Geothermal Steam Act of thermal resource subject to the lease would an apportionment of production or royalties 1970 (30 U.S.C. 1005) is amended— interfere with the mining operations under among the separate tracts of land com- (1) by striking so much as precedes sub- such claim. prising the production unit, if such pooling section (c), and striking subsections (e), (g), ‘‘(B) TERMINATION OF EXEMPTION.—An ex- is determined by the Secretary to be in the (h), (i), and (j); emption under this paragraph expires upon public interest; and (2) by redesignating subsections (c), (d), the termination of the mining operations. ‘‘(2) operation or production pursuant to and (f) in order as subsections (g), (h), and ‘‘(4) TERMINATION OF APPLICATION OF RE- such an Agreement shall be treated as oper- (i); and QUIREMENTS.—Work commitment require- ation or production with respect to each (3) by inserting before subsection (g), as so ments prescribed under this subsection shall tract of land that is subject to the agree- redesignated, the following: not apply to a geothermal lease after the ment. ‘‘SEC. 6. LEASE TERM AND WORK COMMITMENT date on which the geothermal resource is ‘‘(f) UNIT AGREEMENT REVIEW.—No more REQUIREMENTS. utilized under the lease in commercial quan- than 5 years after approval of any coopera- ‘‘(a) IN GENERAL.— tities.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00148 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.066 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2301

‘‘(c) DETERMINATION OF WHETHER REQUIRE- thermal lease is achieved, production ceases (b) USE OF DEPOSITS.—Subject to appro- MENTS SATISFIED.—The Secretary shall, by for any cause the lease shall remain in full priations, the Secretary may use amounts not later than 90 days after the end of each force and effect— deposited under subsection (a) to implement year for which work commitment require- ‘‘(A) during the 1-year period beginning on the Geothermal Steam Act of 1970 and this ments under subsection (b) apply to a geo- the date production ceases; and Act. thermal lease— ‘‘(B) after such period if, and so long as, SEC. 1818. REPEAL OF ACREAGE LIMITATIONS. ‘‘(1) determine whether the lessee has sat- the lessee commences and continues dili- Section 7 of the Geothermal Steam Act of isfied the requirements that apply for that gently and in good faith until such produc- 1970 (30 U.S.C. 1006) is repealed. year; tion is resumed the steps, operations, or pro- SEC. 1819. TECHNICAL AMENDMENTS. ‘‘(2) notify the lessee of that determina- cedures necessary to cause a resumption of The Geothermal Steam Act of 1970 (30 tion; and such production. U.S.C. 1001 et seq.) is further amended as fol- ‘‘(3) in the case of a notification that the ‘‘(2) ADVANCE ROYALTIES FOLLOWING SUS- lows: lessee did not satisfy work commitment re- PENSION OF PRODUCTION.—If production of (1) By striking ‘‘geothermal steam and as- quirements for the year, include in the noti- heat or energy under a geothermal lease is sociated geothermal resources’’ each place it fication— suspended after the date of any such produc- appears and inserting ‘‘geothermal re- ‘‘(A) a description of the specific work that tion for which royalty is required under sub- sources’’. was not completed by the lessee in accord- section (a) and the terms of paragraph (1) are (2) Section 2(e) (30 U.S.C. 1001(e)) is amend- ance with the requirements; and not met, the Secretary shall require the les- ed to read as follows: ‘‘(B) the amount of the dollar value of such see, until the end of such suspension, to pay ‘‘(e) ‘direct use’ means utilization of geo- work that was not completed, reduced by the royalty in advance at the monthly pro rata thermal resources for commercial, residen- amount of expenditures made for work com- rate of the average annual rate at which tial, agricultural, public facilities, off-grid pleted in a prior year that is carried forward such royalty was paid each year in the 5- generation of electricity, or other energy pursuant to subsection (b)(2)(D). year-period preceding the date of suspension. needs other than the commercial production ‘‘(d) PAYMENT OF VALUE OF UNCOMPLETED ‘‘(3) LIMITATION ON APPLICATION.—Para- of electricity; and’’. WORK.— graph (2) shall not apply if the suspension is (3) Section 21 (30 U.S.C. 1020) is amended by ‘‘(1) IN GENERAL.—If the Secretary notifies required or otherwise caused by the Sec- striking ‘‘(a) Within one hundred’’ and all a lessee that the lessee failed to satisfy work retary, the Secretary of a military depart- that follows through ‘‘(b) Geothermal’’ and commitment requirements under subsection ment, a State or local government, or a force inserting ‘‘Geothermal’’. (b), the lessee shall pay to the Secretary, by majeure.’’. (4) The first section (30 U.S.C. 1001 note) is not later than the end of the 60-day period SEC. 1816. ANNUAL RENTAL. amended by striking ‘‘That this’’ and insert- beginning on the date of the notification, the (a) ANNUAL RENTAL RATE.—Section 5 of the ing the following: dollar value of work that was not completed Geothermal Steam Act of 1970 (30 U.S.C. 1004) by the lessee, in the amount stated in the ‘‘SEC. 1. SHORT TITLE. is further amended in subsection (a) in para- notification (as reduced under subsection ‘‘This’’. graph (3) by striking ‘‘$1 per acre or fraction (c)(3)(B)). (5) Section 2 (30 U.S.C. 1001) is amended by thereof for each year of the lease’’ and all ‘‘(2) FAILURE TO PAY VALUE OF striking ‘‘SEC. 2. As’’ and inserting the fol- that follows through the end of the para- UNCOMPLETED WORK.—If a lessee fails to pay lowing: graph and inserting ‘‘$1 per acre or fraction such amount to the Secretary before the end ‘‘SEC. 2. DEFINITIONS. thereof for each year of the lease through of that period, the lease shall terminate ‘‘As’’. the tenth year in the case of a lease awarded upon the expiration of the period. (6) Section 3 (30 U.S.C. 1002) is amended by in a noncompetitive lease sale; or $2 per acre ‘‘(e) CONTINUATION DURING COMMERCIAL striking ‘‘SEC. 3. Subject’’ and inserting the or fraction thereof for the first year, $3 per UTILIZATION.— following: acre or fraction thereof for each of the sec- ‘‘(1) IN GENERAL.—If a geothermal resource ‘‘SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEAS- that is subject to a geothermal lease is uti- ond through tenth years, in the case of a ING. lized in commercial quantities within the lease awarded in a competitive lease sale; ‘‘Subject’’. primary term of the lease under subsection and $5 per acre or fraction thereof for each (7) Section 5 (30 U.S.C. 1004) is further year after the 10th year thereof for all (a) (including any extension of the lease amended by striking ‘‘SEC. 5.’’, and by insert- under subsection (a)), such lease shall con- leases.’’. ing immediately before and above subsection tinue until the date on which the geothermal (b) TERMINATION OF LEASE FOR FAILURE TO (a) the following: PAY RENTAL.—Section 5 of the Geothermal resource is no longer utilized in commercial ‘‘SEC. 5. RENTS AND ROYALTIES.’’. quantities. Steam Act of 1970 (30 U.S.C. 1004) is further amended by adding at the end the following: (8) Section 8 (30 U.S.C. 1007) is amended by ‘‘(2) CONTINUATION OF ASSOCIATED LEASES.— striking ‘‘SEC. 8. (a) The’’ and inserting the ‘‘(g) TERMINATION OF LEASE FOR FAILURE TO If a geothermal lease is for an area in which following: there is injected fluid or steam from a near- PAY RENTAL.— ‘‘(1) IN GENERAL.—The Secretary shall ter- ‘‘SEC. 8. READJUSTMENT OF LEASE TERMS AND by geothermal resource for the purpose of CONDITIONS. maintaining commercial utilization of a geo- minate any geothermal lease with respect to which rental is not paid in accordance with ‘‘(a) The’’. thermal resource, such lease shall continue (9) Section 9 (30 U.S.C. 1008) is amended by until such commercial utilization is termi- this Act and the terms of the lease under which the rental is required, upon the expi- striking ‘‘SEC. 9. If’’ and inserting the fol- nated. lowing: ‘‘(f) CONVERSION OF GEOTHERMAL LEASE TO ration of the 45-day period beginning on the ‘‘SEC. 9. BYPRODUCTS. MINERAL LEASE.—A lessee under a lease for a date of the failure to pay such rental. ‘‘If’’. geothermal resource that has been utilized ‘‘(2) NOTIFICATION.—The Secretary shall (10) Section 10 (30 U.S.C. 1009) is amended for commercial production of electricity, has promptly notify a lessee that has not paid by striking ‘‘SEC. 10. The’’ and inserting the been determined by the Secretary to be in- rental required under the lease that the lease following: capable of any further commercial utiliza- will be terminated at the end of the period tion, and is producing any valuable byprod- referred to in paragraph (1). ‘‘SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS. uct in payable quantities may, within 6 ‘‘(3) REINSTATEMENT.—A geothermal lease ‘‘The’’. months after such determination— that would otherwise terminate under para- (11) Section 11 (30 U.S.C. 1010) is amended ‘‘(1) convert the lease to a mineral lease graph (1) shall not terminate under that by striking ‘‘SEC. 11. The’’ and inserting the under the Mineral Leasing Act (30 U.S.C. 181 paragraph if the lessee pays to the Sec- following: et seq.) or under the Mineral Leasing Act for retary, before the end of the period referred Acquired Lands (30 U.S.C. 351 et seq.), if the to in paragraph (1), the amount of rental due ‘‘SEC. 11. SUSPENSION OF OPERATIONS AND PRO- lands that are subject to the lease can be plus a late fee equal to 10 percent of such DUCTION. leased under that Act for the production of amount.’’. ‘‘The’’. (12) Section 12 (30 U.S.C. 1011) is amended such byproduct; or SEC. 1817. DEPOSIT AND USE OF GEOTHERMAL ‘‘(2) convert the lease to a mining claim LEASE REVENUES FOR 5 FISCAL by striking ‘‘SEC. 12. Leases’’ and inserting under the general mining laws, if the byprod- YEARS. the following: uct is a locatable mineral.’’. (a) DEPOSIT OF GEOTHERMAL RESOURCES ‘‘SEC. 12. TERMINATION OF LEASES. SEC. 1815. ADVANCED ROYALTIES REQUIRED FOR LEASES.—Notwithstanding any other provi- ‘‘Leases’’. SUSPENSION OF PRODUCTION. sion of law, amounts received by the United (13) Section 13 (30 U.S.C. 1012) is amended Section 5 of the Geothermal Steam Act of States in the first 5 fiscal years beginning by striking ‘‘SEC. 13. The’’ and inserting the 1970 (30 U.S.C. 1004) is further amended by after the date of enactment of this Act as following: adding at the end the following: rentals, royalties, and other payments re- ‘‘SEC. 13. WAIVER, SUSPENSION, OR REDUCTION ‘‘(f) ADVANCED ROYALTIES REQUIRED FOR quired under leases under the Geothermal OF RENTAL OR ROYALTY. SUSPENSION OF PRODUCTION.— Steam Act of 1970, excluding funds required ‘‘The’’. ‘‘(1) CONTINUATION OF LEASE FOLLOWING to be paid to State and county governments, (14) Section 14 (30 U.S.C. 1013) is amended CESSATION OF PRODUCTION.—If, at any time shall be deposited into a separate account in by striking ‘‘SEC. 14. Subject’’ and inserting after commercial production under a geo- the Treasury. the following:

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00149 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.066 H20PT1 H2302 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘SEC. 14. SURFACE LAND USE. (1) be known as the ‘‘Intermountain West water quality, navigation, recreation, fish- ‘‘Subject’’. Geothermal Consortium’’; ing, and flood control. (15) Section 15 (30 U.S.C. 1014) is amended (2) be a regional consortium of institutions (8) Any additional recommendations to in- by striking ‘‘SEC. 15. (a) Geothermal’’ and in- and government agencies that focuses on crease hydroelectric power production from, serting the following: building collaborative efforts among the uni- and reduce costs and improve efficiency at, ‘‘SEC. 15. LANDS SUBJECT TO GEOTHERMAL versities in the State of Idaho, other re- federally owned or operated water regula- LEASING. gional universities, State agencies, and the tion, storage, and conveyance facilities. ‘‘(a) Geothermal’’. Idaho National Laboratory; SEC. 1902. SHIFT OF PROJECT LOADS TO OFF- (16) Section 16 (30 U.S.C. 1015) is amended (3) include Boise State University, the Uni- PEAK PERIODS. by striking ‘‘SEC. 16. Leases’’ and inserting versity of Idaho (including the Idaho Water (a) IN GENERAL.—The Secretary of the In- the following: Resources Research Institute), the Oregon terior shall— (1) review electric power consumption by ‘‘SEC. 16. REQUIREMENT FOR LESSEES. Institute of Technology, the Desert Research Bureau of Reclamation facilities for water ‘‘Leases’’. Institute with the University and Commu- pumping purposes; and (17) Section 17 (30 U.S.C. 1016) is amended nity College System of Nevada, and the En- (2) make such adjustments in such pump- by striking ‘‘SEC. 17. Administration’’ and ergy and Geoscience Institute at the Univer- ing as possible to minimize the amount of inserting the following: sity of Utah; (4) be hosted and managed by Boise State electric power consumed for such pumping ‘‘SEC. 17. ADMINISTRATION. University; and during periods of peak electric power con- ‘‘Administration’’. (5) have a director appointed by Boise sumption, including by performing as much (18) Section 19 (30 U.S.C. 1018) is amended State University, and associate directors ap- of such pumping as possible during off-peak by striking ‘‘SEC. 19. Upon’’ and inserting the pointed by each participating institution. hours at night. following: (b) CONSENT OF AFFECTED IRRIGATION CUS- (c) FINANCIAL ASSISTANCE.—The Secretary ‘‘SEC. 19. DATA FROM FEDERAL AGENCIES. of Energy, acting through the Idaho Na- TOMERS REQUIRED.—The Secretary may not under this section make any adjustment in ‘‘Upon’’. tional Laboratory and subject to the avail- pumping at a facility without the consent of (19) Section 21 (30 U.S.C. 1020) is further ability of appropriations, will provide finan- each person that has contracted with the amended by striking ‘‘SEC. 21.’’, and by in- cial assistance to Boise State University for United States for delivery of water from the serting immediately before and above the re- expenditure under contracts with members mainder of that section the following: facility for use for irrigation and that would of the consortium to carry out the activities be affected by such adjustment. ‘‘SEC. 21. PUBLICATION IN FEDERAL REGISTER; of the consortium. (c) EXISTING OBLIGATIONS NOT AFFECTED.— RESERVATION OF MINERAL TITLE XIX—HYDROPOWER RIGHTS.’’. This section shall not be construed to affect any existing obligation of the Secretary to (20) Section 22 (30 U.S.C. 1021) is amended SEC. 1901. INCREASED HYDROELECTRIC GENERA- TION AT EXISTING FEDERAL FACILI- provide electric power, water, or other bene- by striking ‘‘SEC. 22. Nothing’’ and inserting TIES. fits from Bureau of Reclamation facilities, the following: (a) IN GENERAL.—The Secretary of the In- including recreational releases. ‘‘SEC. 22. FEDERAL EXEMPTION FROM STATE terior, the Secretary of Energy, and the Sec- SEC. 1903. REPORT IDENTIFYING AND DESCRIB- WATER LAWS. retary of the Army shall jointly conduct a ING THE STATUS OF POTENTIAL HY- ‘‘Nothing’’. study of the potential for increasing electric DROPOWER FACILITIES. (21) Section 23 (30 U.S.C. 1022) is amended power production capability at federally (a) REPORT REQUIREMENT.—Not later than by striking ‘‘SEC. 23. (a) All’’ and inserting owned or operated water regulation, storage, 90 days after the date of enactment of this the following: and conveyance facilities. Act, the Secretary of the Interior, acting through the Bureau of Reclamation, shall ‘‘SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY. (b) CONTENT.—The study under this section ‘‘(a) All’’. shall include identification and description submit to the Committee on Resources of (22) Section 24 (30 U.S.C. 1023) is amended in detail of each facility that is capable, with the House of Representatives and the Com- mittee on Energy and Natural Resources of by striking ‘‘SEC. 24. The’’ and inserting the or without modification, of producing addi- the Senate a report identifying and describ- following: tional hydroelectric power, including esti- ing the status of potential hydropower facili- ‘‘SEC. 24. RULES AND REGULATIONS. mation of the existing potential for the facil- ties included in water surface storage studies ity to generate hydroelectric power. ‘‘The’’. undertaken by the Secretary for projects EPORT.—The Secretaries shall submit (23) Section 25 (30 U.S.C. 1024) is amended (c) R that have not been completed or authorized by striking ‘‘SEC. 25. As’’ and inserting the to the Committees on Energy and Com- for construction. following: merce, Resources, and Transportation and (b) REPORT CONTENTS.—The report shall in- ‘‘SEC. 25. INCLUSION OF GEOTHERMAL LEASING Infrastructure of the House of Representa- clude the following: UNDER CERTAIN OTHER LAWS. tives and the Committee on Energy and Nat- (1) Identification of all surface storage ‘‘As’’. ural Resources of the Senate a report on the studies authorized by Congress since the en- (24) Section 26 is amended by striking findings, conclusions, and recommendations actment of the Reclamation Project Act of ‘‘SEC. 26. The’’ and inserting the following: of the study under this section by not later 1939 (43 U.S.C. 485 et seq.). ‘‘SEC. 26. AMENDMENT. than 18 months after the date of the enact- (2) The purposes of each project included ‘‘The’’. ment of this Act. The report shall include within each study identified under paragraph (25) Section 27 (30 U.S.C. 1025) is amended each of the following: (1). (1) The identifications, descriptions, and by striking ‘‘SEC. 27. The’’ and inserting the (3) The status of each study identified following: estimations referred to in subsection (b). under paragraph (1), including for each (2) A description of activities currently study— ‘‘SEC. 27. FEDERAL RESERVATION OF CERTAIN conducted or considered, or that could be MINERAL RIGHTS. (A) whether the study is completed or, if considered, to produce additional hydro- ‘‘The’’. not completed, still authorized; electric power from each identified facility. (26) Section 28 (30 U.S.C. 1026) is amended (B) the level of analyses conducted at the (3) A summary of prior actions taken by feasibility and reconnaissance levels of re- by striking ‘‘SEC. 28. (a)(1) The’’ and insert- the Secretaries to produce additional hydro- ing the following: view; electric power from each identified facility. (C) identifiable environmental impacts of ‘‘SEC. 28. SIGNIFICANT THERMAL FEATURES. (4) The costs to install, upgrade, or modify each project included in the study, including ‘‘(a)(1) The’’. equipment or take other actions to produce to fish and wildlife, water quality, and recre- (27) Section 29 (30 U.S.C. 1027) is amended additional hydroelectric power from each ation; by striking ‘‘SEC. 29. The’’ and inserting the identified facility and the level of Federal (D) projected water yield from each such following: power customer involvement in the deter- project; ‘‘SEC. 29. LAND SUBJECT TO PROHIBITION ON mination of such costs. (E) beneficiaries of each such project; LEASING. (5) The benefits that would be achieved by (F) the amount authorized and expended; ‘‘The’’. such installation, upgrade, modification, or (G) projected funding needs and timelines SEC. 1820. INTERMOUNTAIN WEST GEOTHERMAL other action, including quantified estimates for completing the study (if applicable); CONSORTIUM. of any additional energy or capacity from (H) anticipated costs of each such project; (a) PARTICIPATION AUTHORIZED.—The Sec- each facility identified under subsection (b). and retary of Energy, acting through the Idaho (6) A description of actions that are (I) other factors that might interfere with National Laboratory, may participate in a planned, underway, or might reasonably be construction of any such project. consortium described in subsection (b) to ad- considered to increase hydroelectric power (4) An identification of potential hydro- dress science and science policy issues sur- production by replacing turbine runners, by electric facilities that might be developed rounding the expanded discovery and use of performing generator upgrades or rewinds, or pursuant to each study identified under geothermal energy, including from geo- construction of pumped storage facilities. paragraph (1). thermal resources on public lands. (7) The impact of increased hydroelectric (5) Applicable costs and benefits associated (b) MEMBERS.—The consortium referred to power production on irrigation, water sup- with potential hydroelectric production pur- in subsection (a) shall— ply, fish, wildlife, Indian tribes, river health, suant to each study.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00150 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.066 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2303 TITLE XX—OIL AND GAS—RESOURCES the royalty gas or delivers the royalty oil or royalty in-kind program to the State except Subtitle A—Production Incentives gas at a point not on or adjacent to the lease as otherwise prohibited by Federal law; and area, the Secretary shall— SEC. 2001. DEFINITION OF SECRETARY. (2) shall consult annually with any State (1) reimburse the lessee for the reasonable In this subtitle, the term ‘‘Secretary’’ from which Federal oil or gas royalty is costs of transportation (not including gath- means the Secretary of the Interior. being taken in-kind to ensure, to the max- ering) from the lease to the point of delivery imum extent practicable, that the royalty SEC. 2002. PROGRAM ON OIL AND GAS ROYALTIES or for processing costs; or IN-KIND. in-kind program provides revenues to the (2) allow the lessee to deduct the transpor- State greater than or equal to those likely (a) APPLICABILITY OF SECTION.—Notwith- tation or processing costs in reporting and standing any other provision of law, this sec- to have been received had royalties been paying royalties in-value for other Federal tion applies to all royalty in-kind accepted taken in-value. oil and gas leases. (h) SMALL REFINERIES.— by the Secretary on or after the date of en- (d) BENEFIT TO THE UNITED STATES RE- (1) PREFERENCE.—If the Secretary finds actment of this Act under any Federal oil or QUIRED.—The Secretary may receive oil or that sufficient supplies of crude oil are not gas lease or permit under section 36 of the gas royalties in-kind only if the Secretary available in the open market to refineries Mineral Leasing Act (30 U.S.C. 192), section determines that receiving royalties in-kind that do not have their own source of supply 27 of the Outer Continental Shelf Lands Act provides benefits to the United States that for crude oil, the Secretary may grant pref- (43 U.S.C. 1353), or any other Federal law are greater than or equal to the benefits that erence to such refineries in the sale of any governing leasing of Federal land for oil and are likely to have been received had royal- royalty oil accruing or reserved to the gas development. ties been taken in-value. United States under Federal oil and gas (b) TERMS AND CONDITIONS.—All royalty ac- (e) REPORTS.— cruing to the United States shall, on the de- leases issued under any mineral leasing law, (1) IN GENERAL.—Not later than September for processing or use in such refineries at mand of the Secretary, be paid in oil or gas. 30, 2005, the Secretary shall submit to Con- If the Secretary makes such a demand, the private sale at not less than the market gress a report that addresses— price. following provisions apply to such payment: (A) actions taken to develop businesses (2) PRORATION AMONG REFINERIES IN PRO- (1) SATISFACTION OF ROYALTY OBLIGATION.— processes and automated systems to fully Delivery by, or on behalf of, the lessee of the DUCTION AREA.—In disposing of oil under this support the royalty-in-kind capability to be subsection, the Secretary of Energy may, at royalty amount and quality due under the used in tandem with the royalty-in-value ap- lease satisfies the lessee’s royalty obligation the discretion of the Secretary, prorate the proach in managing Federal oil and gas rev- oil among refineries described in paragraph for the amount delivered, except that trans- enue; and portation and processing reimbursements (1) in the area in which the oil is produced. (B) future royalty-in-kind businesses oper- (i) DISPOSITION TO FEDERAL AGENCIES.— paid to, or deductions claimed by, the lessee ation plans and objectives. (1) ONSHORE ROYALTY.—Any royalty oil or shall be subject to review and audit. (2) REPORTS ON OIL OR GAS ROYALTIES TAKEN gas taken by the Secretary in-kind from on- (2) MARKETABLE CONDITION.— IN-KIND.—For each of fiscal years 2005 shore oil and gas leases may be sold at not (A) IN GENERAL.—Royalty production shall through 2014 in which the United States less than the market price to any Federal be placed in marketable condition by the les- takes oil or gas royalties in-kind from pro- agency. see at no cost to the United States. duction in any State or from the outer Con- (2) OFFSHORE ROYALTY.—Any royalty oil or (B) DEFINITION OF MARKETABLE CONDITION.— tinental Shelf, excluding royalties taken in- gas taken in-kind from a Federal oil or gas In this paragraph, the term ‘‘in marketable kind and sold to refineries under subsection lease on the outer Continental Shelf may be condition’’ means sufficiently free from im- (h), the Secretary shall submit to Congress a disposed of only under section 27 of the Outer purities and otherwise in a condition that report that describes— Continental Shelf Lands Act (43 U.S.C. 1353). the royalty production will be accepted by a (A) the methodology or methodologies used (j) FEDERAL LOW-INCOME ENERGY ASSIST- purchaser under a sales contract typical of by the Secretary to determine compliance ANCE PROGRAMS.— the field or area in which the royalty produc- with subsection (d), including the perform- (1) PREFERENCE.—In disposing of royalty tion was produced. ance standard for comparing amounts re- oil or gas taken in-kind under this section, (3) DISPOSITION BY THE SECRETARY.—The ceived by the United States derived from the Secretary may grant a preference to any Secretary may— royalties in-kind to amounts likely to have person, including any Federal or State agen- (A) sell or otherwise dispose of any royalty been received had royalties been taken in- cy, for the purpose of providing additional production taken in-kind (other than oil or value; resources to any Federal low-income energy gas transferred under section 27(a)(3) of the (B) an explanation of the evaluation that assistance program. Outer Continental Shelf Lands Act (43 U.S.C. led the Secretary to take royalties in-kind (2) REPORT.—Not later than 3 years after 1353(a)(3))) for not less than the market from a lease or group of leases, including the the date of enactment of this Act, the Sec- price; and expected revenue effect of taking royalties retary shall transmit a report to Congress, (B) transport or process (or both) any roy- in-kind; assessing the effectiveness of granting pref- alty production taken in-kind. (C) actual amounts received by the United erences specified in paragraph (1) and pro- (4) RETENTION BY THE SECRETARY.—The States derived from taking royalties in-kind viding a specific recommendation on the Secretary may, notwithstanding section 3302 and costs and savings incurred by the United continuation of authority to grant pref- of title 31, United States Code, retain and States associated with taking royalties in- erences. use a portion of the revenues from the sale of kind, including, but not limited to, adminis- SEC. 2003. MARGINAL PROPERTY PRODUCTION oil and gas taken in-kind that otherwise trative savings and any new or increased ad- INCENTIVES. would be deposited to miscellaneous re- ministrative costs; and (a) DEFINITION OF MARGINAL PROPERTY.— ceipts, without regard to fiscal year limita- (D) an evaluation of other relevant public Until such time as the Secretary issues regu- tion, or may use oil or gas received as roy- benefits or detriments associated with tak- lations under subsection (e) that prescribe a alty taken in-kind (in this paragraph re- ing royalties in-kind. different definition, in this section the term ferred to as ‘‘royalty production’’) to pay the (f) DEDUCTION OF EXPENSES.— ‘‘marginal property’’ means an onshore unit, cost of— (1) IN GENERAL.—Before making payments communitization agreement, or lease not (A) transporting the royalty production; under section 35 of the Mineral Leasing Act within a unit or communitization agree- (B) processing the royalty production; (30 U.S.C. 191) or section 8(g) of the Outer ment, that produces on average the com- (C) disposing of the royalty production; or Continental Shelf Lands Act (43 U.S.C. bined equivalent of less than 15 barrels of oil (D) any combination of transporting, proc- 1337(g)) of revenues derived from the sale of per well per day or 90 million British ther- essing, and disposing of the royalty produc- royalty production taken in-kind from a mal units of gas per well per day calculated tion. lease, the Secretary shall deduct amounts based on the average over the 3 most recent (5) LIMITATION.— paid or deducted under subsections (b)(4) and production months, including only wells that (A) IN GENERAL.—Except as provided in (c) and deposit the amount of the deductions produce on more than half of the days during subparagraph (B), the Secretary may not use in the miscellaneous receipts of the United those 3 production months. revenues from the sale of oil and gas taken States Treasury. (b) CONDITIONS FOR REDUCTION OF ROYALTY in-kind to pay for personnel, travel, or other (2) ACCOUNTING FOR DEDUCTIONS.—When the RATE.—Until such time as the Secretary administrative costs of the Federal Govern- Secretary allows the lessee to deduct trans- issues regulations under subsection (e) that ment. portation or processing costs under sub- prescribe different thresholds or standards, (B) EXCEPTION.—Notwithstanding subpara- section (c), the Secretary may not reduce the Secretary shall reduce the royalty rate graph (A), the Secretary may use a portion any payments to recipients of revenues de- on— of the revenues from the sale of oil taken in- rived from any other Federal oil and gas (1) oil production from marginal properties kind, without fiscal year limitation, to pay lease as a consequence of that deduction. as prescribed in subsection (c) when the spot salaries and other administrative costs di- (g) CONSULTATION WITH STATES.—The Sec- price of West Texas Intermediate crude oil at rectly related to the royalty-in-kind pro- retary— Cushing, Oklahoma, is, on average, less than gram. (1) shall consult with a State before con- $15 per barrel for 90 consecutive trading (c) REIMBURSEMENT OF COST.—If the lessee, ducting a royalty in-kind program under this days; and pursuant to an agreement with the United subtitle within the State, and may delegate (2) gas production from marginal prop- States or as provided in the lease, processes management of any portion of the Federal erties as prescribed in subsection (c) when

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00151 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.066 H20PT1 H2304 CONGRESSIONAL RECORD — HOUSE April 20, 2005 the spot price of natural gas delivered at addition to any other regulations that may SEC. 2006. ALASKA OFFSHORE ROYALTY SUSPEN- Henry Hub, Louisiana, is, on average, less provide royalty incentives for natural gas SION. than $2.00 per million British thermal units produced from deep wells on oil and gas Section 8(a)(3)(B) of the Outer Continental for 90 consecutive trading days. leases issued pursuant to the Outer Conti- Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is (c) REDUCED ROYALTY RATE.— nental Shelf Lands Act (43 U.S.C. 1331 et amended by inserting ‘‘and in the Planning (1) IN GENERAL.—When a marginal property seq.), the Secretary shall issue regulations Areas offshore Alaska’’ after ‘‘West lon- meets the conditions specified in subsection granting royalty relief suspension volumes gitude’’. (b), the royalty rate shall be the lesser of— of not less than 35,000,000,000 cubic feet with SEC. 2007. OIL AND GAS LEASING IN THE NA- (A) 5 percent; or respect to the production of natural gas from TIONAL PETROLEUM RESERVE IN (B) the applicable rate under any other ultra deep wells on leases issued in shallow ALASKA. statutory or regulatory royalty relief provi- waters less than 400 meters deep located in (a) TRANSFER OF AUTHORITY.— sion that applies to the affected production. the Gulf of Mexico wholly west of 87 degrees, (1) REDESIGNATION.—The Naval Petroleum (2) PERIOD OF EFFECTIVENESS.—The reduced 30 minutes west longitude. Regulations Reserves Production Act of 1976 (42 U.S.C. royalty rate under this subsection shall be issued under this subsection shall be retro- 6501 et seq.) is amended by redesignating sec- effective beginning on the first day of the active to the date that the notice of proposed tion 107 (42 U.S.C. 6507) as section 108. production month following the date on rulemaking is published in the Federal Reg- (2) TRANSFER.—The matter under the head- which the applicable condition specified in ister. ing ‘‘EXPLORATION OF NATIONAL PETROLEUM subsection (b) is met. (2) DEFINITION OF ULTRA DEEP WELL.—In RESERVE IN ALASKA’’ under the heading ‘‘EN- (d) TERMINATION OF REDUCED ROYALTY this subsection, the term ‘‘ultra deep well’’ ERGY AND MINERALS’’ of title I of Public RATE.—A royalty rate prescribed in sub- means a well drilled with a perforated inter- Law 96–514 (42 U.S.C. 6508) is— section (d)(1)(A) shall terminate— val, the top of which is at least 20,000 feet (A) transferred to the Naval Petroleum Re- (1) with respect to oil production from a true vertical depth below the datum at mean serves Production Act of 1976 (42 U.S.C. 6501 marginal property, on the first day of the sea level. et seq.); production month following the date on (b) ROYALTY INCENTIVE REGULATIONS FOR (B) designated as section 107 of that Act; which— DEEP GAS WELLS.—Not later than 180 days and (A) the spot price of West Texas Inter- after the date of enactment of this Act, in (C) moved so as to appear after section 106 mediate crude oil at Cushing, Oklahoma, on addition to any other regulations that may of that Act (42 U.S.C. 6506). average, exceeds $15 per barrel for 90 con- provide royalty incentives for natural gas (b) COMPETITIVE LEASING.—Section 107 of secutive trading days; or produced from deep wells on oil and gas the Naval Petroleum Reserves Production (B) the property no longer qualifies as a leases issued pursuant to the Outer Conti- Act of 1976 (as amended by subsection (a) of marginal property; and nental Shelf Lands Act (43 U.S.C. 1331 et this section) is amended— (2) with respect to gas production from a seq.), the Secretary shall issue regulations (1) by striking the heading and all that fol- marginal property, on the first day of the granting royalty relief suspension volumes lows through ‘‘Provided, That (1) activities’’ production month following the date on with respect to the production of natural gas and inserting the following: which— from deep wells on leases issued in waters ‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND (A) the spot price of natural gas delivered more than 200 meters but less than 400 me- GAS. at Henry Hub, Louisiana, on average, ex- ters deep located in the Gulf of Mexico whol- ‘‘(a) IN GENERAL.—Notwithstanding any ceeds $2.00 per million British thermal units ly west of 87 degrees, 30 minutes west lon- other provision of law and pursuant to regu- for 90 consecutive trading days; or gitude. The suspension volumes for deep lations issued by the Secretary, the Sec- (B) the property no longer qualifies as a wells within 200 to 400 meters of water depth retary shall conduct an expeditious program marginal property. shall be calculated using the same method- of competitive leasing of oil and gas in the (e) REGULATIONS PRESCRIBING DIFFERENT ology used to calculate the suspension vol- National Petroleum Reserve in Alaska (re- RELIEF.— umes for deep wells in the shallower waters ferred to in this section as the ‘Reserve’). (1) DISCRETIONARY REGULATIONS.—The Sec- of the Gulf of Mexico, and in no case shall ‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Ac- retary may by regulation prescribe different the suspension volumes for deep wells within tivities’’; parameters, standards, and requirements for, 200 to 400 meters of water depth be lower (2) by striking ‘‘Alaska (the Reserve); (2) and a different degree or extent of, royalty than those for deep wells in shallower wa- the’’ and inserting relief for marginal properties in lieu of those ters. Regulations issued under this sub- ‘‘Alaska. prescribed in subsections (a) through (d). section shall be retroactive to the date that ‘‘(c) LAND USE PLANNING; BLM WILDERNESS (2) MANDATORY REGULATIONS.—Not later the notice of proposed rulemaking is pub- STUDY.—The’’; than 18 months after the date of enactment lished in the Federal Register. (3) by striking ‘‘Reserve; (3) the’’ and in- of this Act, the Secretary shall by regula- serting (c) LIMITATION.—The Secretary may place tion— limitations on the suspension of royalty re- ‘‘Reserve. ‘‘(d) FIRST LEASE SALE.—The’’; (A) prescribe standards and requirements lief granted based on market price. for, and the extent of royalty relief for, mar- (4) by striking ‘‘4332); (4) the’’ and inserting ginal properties for oil and gas leases on the SEC. 2005. ROYALTY RELIEF FOR DEEP WATER ‘‘4321 et seq.). PRODUCTION. outer Continental Shelf; and ‘‘(e) WITHDRAWALS.—The’’; (a) IN GENERAL.—For all tracts located in (B) define what constitutes a marginal (5) by striking ‘‘herein; (5) bidding’’ and in- water depths of greater than 400 meters in property on the outer Continental Shelf for serting the Western and Central Planning Area of purposes of this section. ‘‘under this section. the Gulf of Mexico, including the portion of (3) CONSIDERATIONS.—In promulgating reg- ‘‘(f) BIDDING SYSTEMS.—Bidding’’; the Eastern Planning Area of the Gulf of ulations under this subsection, the Secretary (6) by striking ‘‘629); (6) lease’’ and insert- Mexico encompassing whole lease blocks may consider— ing lying west of 87 degrees, 30 minutes West lon- (A) oil and gas prices and market trends; ‘‘629). gitude, any oil or gas lease sale under the (B) production costs; ‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; Outer Continental Shelf Lands Act (43 U.S.C. (C) abandonment costs; (7) by striking ‘‘structures; (7) the’’ and in- 1331 et seq.) occurring within 5 years after (D) Federal and State tax provisions and serting the date of enactment of this Act shall use the effects of those provisions on production ‘‘structures. the bidding system authorized in section economics; ‘‘(h) SIZE OF LEASE TRACTS.—The’’; 8(a)(1)(H) of the Outer Continental Shelf (E) other royalty relief programs; (8) by striking ‘‘Secretary; (8)’’ and all that Lands Act (43 U.S.C. 1337(a)(1)(H)), except (F) regional differences in average well- follows through ‘‘Drilling, production,’’ and that the suspension of royalties shall be set head prices; inserting at a volume of not less than— (G) national energy security issues; and ‘‘Secretary. (1) 5,000,000 barrels of oil equivalent for (H) other relevant matters. ‘‘(i) TERMS.— (f) SAVINGS PROVISION.—Nothing in this each lease in water depths of 400 to 800 me- ‘‘(1) IN GENERAL.—Each lease shall be— section prevents a lessee from receiving roy- ters; ‘‘(A) issued for an initial period of not alty relief or a royalty reduction pursuant to (2) 9,000,000 barrels of oil equivalent for more than 10 years; and any other law (including a regulation) that each lease in water depths of 800 to 1,600 me- ‘‘(B) renewed for successive 10-year terms provides more relief than the amounts pro- ters; if— vided by this section. (3) 12,000,000 barrels of oil equivalent for ‘‘(i) oil or gas is produced from the lease in each lease in water depths of 1,600 to 2,000 SEC. 2004. INCENTIVES FOR NATURAL GAS PRO- paying quantities; DUCTION FROM DEEP WELLS IN THE meters; and ‘‘(ii) oil or gas is capable of being produced SHALLOW WATERS OF THE GULF OF (4) 16,000,000 barrels of oil equivalent for in paying quantities; or MEXICO. each lease in water depths greater than 2,000 ‘‘(iii) drilling or reworking operations, as (a) ROYALTY INCENTIVE REGULATIONS FOR meters. approved by the Secretary, are conducted on ULTRA DEEP GAS WELLS.— (b) LIMITATION.—The Secretary may place the leased land. (1) IN GENERAL.—Not later than 180 days limitations on the suspension of royalty re- ‘‘(2) RENEWAL OF NONPRODUCING LEASES.— after the date of enactment of this Act, in lief granted based on market price. The Secretary shall renew for an additional

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00152 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.067 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2305 10-year term a lease that does not meet the ‘‘to the agreement. gations of the lessee under, or maintain, the requirements of paragraph (1)(B) if the lessee ‘‘(k) EXPLORATION INCENTIVES.— other segregated lease to the same extent as submits to the Secretary an application for ‘‘(1) IN GENERAL.— if such segregated leases remained a part of renewal not later than 60 days before the ex- ‘‘(A) WAIVER, SUSPENSION, OR REDUCTION.— the original unsegregated lease.’’. piration of the primary lease and— To encourage the greatest ultimate recovery SEC. 2008. ORPHANED, ABANDONED, OR IDLED ‘‘(A) the lessee certifies, and the Secretary of oil or gas or in the interest of conserva- WELLS ON FEDERAL LAND. agrees, that hydrocarbon resources were dis- tion, the Secretary may waive, suspend, or (a) IN GENERAL.—The Secretary, in co- covered on 1 or more wells drilled on the reduce the rental fees or minimum royalty, operation with the Secretary of Agriculture, leased land in such quantities that a prudent or reduce the royalty on an entire leasehold shall establish a program not later than 1 operator would hold the lease for potential (including on any lease operated pursuant to year after the date of enactment of this Act future development; a unit agreement), if (after consultation with to remediate, reclaim, and close orphaned, ‘‘(B) the lessee— the State of Alaska and the North Slope Bor- abandoned, or idled oil and gas wells located ‘‘(i) pays the Secretary a renewal fee of ough of Alaska and the concurrence of any on land administered by the land manage- $100 per acre of leased land; and Regional Corporation for leases that include ment agencies within the Department of the ‘‘(ii) provides evidence, and the Secretary lands available for acquisition by the Re- Interior and the Department of Agriculture. agrees that, the lessee has diligently pursued gional Corporation under the provisions of (b) ACTIVITIES.—The program under sub- exploration that warrants continuation with section 1431(o) of the Alaska National Inter- section (a) shall— the intent of continued exploration or future est Lands Conservation Act (16 U.S.C. 3101 et (1) include a means of ranking orphaned, development of the leased land; or seq.)) the Secretary determines that the abandoned, or idled wells sites for priority in ‘‘(C) all or part of the lease— waiver, suspension, or reduction is in the remediation, reclamation, and closure, based ‘‘(i) is part of a unit agreement covering a public interest. on public health and safety, potential envi- ronmental harm, and other land use prior- lease described in subparagraph (A) or (B); ‘‘(B) APPLICABILITY.—This paragraph ap- and plies to a lease that— ities; ‘‘(ii) has not been previously contracted ‘‘(i) is entered into before, on, or after the (2) provide for identification and recovery out of the unit. date of enactment of the Energy Policy Act of the costs of remediation, reclamation, and ‘‘(3) APPLICABILITY.—This subsection ap- of 2005; and closure from persons or other entities cur- rently providing a bond or other financial as- plies to a lease that— ‘‘(ii) is effective on or after the date of en- surance required under State or Federal law ‘‘(A) is entered into before, on, or after the actment of that Act.’’; for an oil or gas well that is orphaned, aban- date of enactment of the Energy Policy Act (12) by striking ‘‘The Secretary is author- doned, or idled; and of 2005; and ized to’’ and inserting the following: (3) provide for recovery from the persons or ‘‘(B) is effective on or after the date of en- ‘‘(2) SUSPENSION OF OPERATIONS AND PRO- entities identified under paragraph (2), or actment of that Act. DUCTION.—The Secretary may’’; their sureties or guarantors, of the costs of ‘‘(j) UNIT AGREEMENTS.— (13) by striking ‘‘In the event’’ and insert- remediation, reclamation, and closure of ‘‘(1) IN GENERAL.—For the purpose of con- ing the following: servation of the natural resources of all or such wells. ‘‘(3) SUSPENSION OF PAYMENTS.—If’’; part of any oil or gas pool, field, reservoir, or (c) COOPERATION AND CONSULTATIONS.—In (14) by striking ‘‘thereto; and (11) all’’ and carrying out the program under subsection like area, lessees (including representatives) inserting of the pool, field, reservoir, or like area may (a), the Secretary shall— ‘‘to the lease. (1) work cooperatively with the Secretary unite with each other, or jointly or sepa- ‘‘(l) RECEIPTS.—All’’; of Agriculture and the States within which rately with others, in collectively adopting (15) by redesignating clauses (A), (B), and Federal land is located; and and operating under a unit agreement for all (C) as clauses (1), (2), and (3), respectively; (2) consult with the Secretary of Energy or part of the pool, field, reservoir, or like (16) by striking ‘‘Any agency’’ and insert- area (whether or not any other part of the oil and the Interstate Oil and Gas Compact ing the following: Commission. or gas pool, field, reservoir, or like area is al- ‘‘(m) EXPLORATIONS.—Any agency’’; (d) PLAN.—Not later than 1 year after the ready subject to any cooperative or unit plan (17) by striking ‘‘Any action’’ and inserting of development or operation), if the Sec- date of enactment of this Act, the Secretary, the following: in cooperation with the Secretary of Agri- retary determines the action to be necessary ‘‘(n) ENVIRONMENTAL IMPACT STATE- culture, shall submit to Congress a plan for or advisable in the public interest. MENTS.— carrying out the program under subsection ‘‘(2) PARTICIPATION BY STATE OF ALASKA.— ‘‘(1) JUDICIAL REVIEW.—Any action’’; The Secretary shall ensure that the State of (a). (18) by striking ‘‘The detailed’’ and insert- (e) IDLED WELL.—For the purposes of this Alaska is provided the opportunity for active ing the following: section, a well is idled if— participation concerning creation and man- ‘‘(2) INITIAL LEASE SALES.—The detailed’’; (1) the well has been nonoperational for at agement of units formed or expanded under (19) by striking ‘‘of the Naval Petroleum least 7 years; and this subsection that include acreage in which Reserves Production Act of 1976 (90 Stat. 304; (2) there is no anticipated beneficial use the State of Alaska has an interest in the 42 U.S.C. 6504)’’; and for the well. mineral estate. (20) by adding at the end the following: (f) TECHNICAL ASSISTANCE PROGRAM FOR ‘‘(3) PARTICIPATION BY REGIONAL CORPORA- ‘‘(o) WAIVER OF ADMINISTRATION FOR CON- NON-FEDERAL LAND.— TIONS.—The Secretary shall ensure that any VEYED LANDS.—Notwithstanding section (1) IN GENERAL.—The Secretary of Energy Regional Corporation (as defined in section 3 14(g) of the Alaska Native Claims Settlement shall establish a program to provide tech- of the Alaska Native Claims Settlement Act Act (43 U.S.C. 1613(g)) or any other provision nical and financial assistance to oil and gas (43 U.S.C. 1602)) is provided the opportunity of law— producing States to facilitate State efforts for active participation concerning creation ‘‘(1) the Secretary of the Interior shall over a 10-year period to ensure a practical and management of units that include acre- waive administration of any oil and gas lease and economical remedy for environmental age in which the Regional Corporation has insofar as such lease covers any land in the problems caused by orphaned or abandoned an interest in the mineral estate. National Petroleum Reserve in Alaska in oil and gas exploration or production well ‘‘(4) PRODUCTION ALLOCATION METHOD- which the subsurface estate is conveyed to sites on State or private land. OLOGY.—The Secretary may use a production the Arctic Slope Regional Corporation; and (2) ASSISTANCE.—The Secretary of Energy allocation methodology for each partici- ‘‘(2) if any such conveyance of such sub- shall work with the States, through the pating area within a unit created for land in surface estate does not cover all the land em- Interstate Oil and Gas Compact Commission, the Reserve, State of Alaska land, or Re- braced within any such oil and gas lease— to assist the States in quantifying and miti- gional Corporation land shall, when appro- ‘‘(A) the person who owns the subsurface gating environmental risks of onshore or- priate, be based on the characteristics of estate in any particular portion of the land phaned or abandoned oil or gas wells on each specific oil or gas pool, field, reservoir, covered by such lease shall be entitled to all State and private land. or like area to take into account reservoir of the revenues reserved under such lease as (3) ACTIVITIES.—The program under para- heterogeneity and a real variation in res- to such portion, including, without limita- graph (1) shall include— ervoir producibility across diverse leasehold tion, all the royalty payable with respect to (A) mechanisms to facilitate identifica- interests. oil or gas produced from or allocated to such tion, if feasible, of the persons currently pro- ‘‘(5) BENEFIT OF OPERATIONS.—Drilling, pro- particular portion of the land covered by viding a bond or other form of financial as- duction,’’; such lease; and surance required under State or Federal law (9) by striking ‘‘When separate’’ and insert- ‘‘(B) the Secretary of the Interior shall for an oil or gas well that is orphaned or ing the following: segregate such lease into 2 leases, 1 of which abandoned; ‘‘(6) POOLING.—If separate’’; shall cover only the subsurface estate con- (B) criteria for ranking orphaned or aban- (10) by inserting ‘‘(in consultation with the veyed to the Arctic Slope Regional Corpora- doned well sites based on factors such as owners of the other land)’’ after ‘‘determined tion, and operations, production, or other public health and safety, potential environ- by the Secretary of the Interior’’; circumstances (other than payment of rent- mental harm, and other land use priorities; (11) by striking ‘‘thereto; (10) to’’ and all als or royalties) that satisfy obligations of (C) information and training programs on that follows through ‘‘the terms provided the lessee under, or maintain, either of the best practices for remediation of different therein.’’ and inserting segregated leases shall likewise satisfy obli- types of sites; and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00153 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.067 H20PT1 H2306 CONGRESSIONAL RECORD — HOUSE April 20, 2005

(D) funding of State mitigation efforts on a (2) USE.—Of the amounts authorized under percent of any amount received from the cost-shared basis. paragraph (1), $5,000,000 are authorized for holder of the lease, easement, right-of-way, (g) FEDERAL REIMBURSEMENT FOR OR- each fiscal year for activities under sub- license, or permit to the State off the shore PHANED WELL RECLAMATION PILOT PRO- section (f). of which the geographic center of the area GRAM.— SEC. 2009. COMBINED HYDROCARBON LEASING. covered by the lease, easement, right-of-way, (1) REIMBURSEMENT FOR REMEDIATING, RE- (a) SPECIAL PROVISIONS REGARDING LEAS- license, permit, or facility is located, in ac- CLAIMING, AND CLOSING WELLS ON LAND SUB- ING.—Section 17(b)(2) of the Mineral Leasing cordance with Federal law determining the JECT TO A NEW LEASE.—The Secretary shall Act (30 U.S.C. 226(b)(2)) is amended— seaward lateral boundaries of the coastal carry out a pilot program under which, in (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and States. issuing a new oil and gas lease on federally (2) by adding at the end the following: ‘‘(3) CONSULTATION.—Before exercising au- owned land on which 1 or more orphaned ‘‘(B) For any area that contains any com- thority under this subsection, the Secretary wells are located, the Secretary— bination of tar sand and oil or gas (or both), shall consult with the Secretary of Defense (A) may require, but not as a condition of the Secretary may issue under this Act, sep- and other appropriate agencies concerning the lease, that the lessee remediate, reclaim, arately— issues related to national security and navi- and close in accordance with standards es- ‘‘(i) a lease for exploration for and extrac- gational obstruction. tablished by the Secretary, all orphaned tion of tar sand; and ‘‘(4) COMPETITIVE OR NONCOMPETITIVE wells on the land leased; and ‘‘(ii) a lease for exploration for and devel- BASIS.— (B) shall develop a program to reimburse a ‘‘(A) IN GENERAL.—The Secretary may lessee, through a royalty credit against the opment of oil and gas. ‘‘(C) A lease issued for tar sand shall be issue a lease, easement, or right-of-way for Federal share of royalties owed or other energy and related purposes as described in means, for the reasonable actual costs of re- issued using the same bidding process, an- nual rental, and posting period as a lease paragraph (1) on a competitive or non- mediating, reclaiming, and closing the or- competitive basis. phaned well pursuant to that requirement. issued for oil and gas, except that the min- imum acceptable bid required for a lease ‘‘(B) CONSIDERATIONS.—In determining (2) REIMBURSEMENT FOR RECLAIMING OR- whether a lease, easement, or right-of-way PHANED WELLS ON OTHER LAND.—In carrying issued for tar sand shall be $2 per acre. ‘‘(D) The Secretary may waive, suspend, or shall be granted competitively or non- out this subsection, the Secretary— competitively, the Secretary shall consider (A) may authorize any lessee under an oil alter any requirement under section 26 that such factors as— and gas lease on federally owned land to re- a permittee under a permit authorizing ‘‘(i) prevention of waste and conservation claim in accordance with the Secretary’s prospecting for tar sand must exercise due of natural resources; standards— diligence, to promote any resource covered ‘‘(ii) the economic viability of an energy (i) an orphaned well on unleased federally by a combined hydrocarbon lease.’’. project; owned land; or (b) CONFORMING AMENDMENT.—Section ‘‘(iii) protection of the environment; (ii) an orphaned well located on an existing 17(b)(1)(B) of the Mineral Leasing Act (30 ‘‘(iv) the national interest and national se- lease on federally owned land for the rec- U.S.C. 226(b)(1)(B)) is amended in the second curity; lamation of which the lessee is not legally sentence by inserting ‘‘, subject to paragraph ‘‘(v) human safety; responsible; and (2)(B),’’ after ‘‘Secretary’’. (B) shall develop a program to provide re- (c) REGULATIONS.—Not later than 45 days ‘‘(vi) protection of correlative rights; and imbursement of 115 percent of the reasonable after the date of enactment of this Act, the ‘‘(vii) potential return for the lease, ease- actual costs of remediating, reclaiming, and Secretary shall issue final regulations to im- ment, or right-of-way. closing the orphaned well, through credits plement this section. ‘‘(5) REGULATIONS.—Not later than 270 days after the date of enactment of the Energy against the Federal share of royalties or SEC. 2010. ALTERNATE ENERGY-RELATED USES other means. ON THE OUTER CONTINENTAL Policy Act of 2005, the Secretary, in con- (3) EFFECT OF REMEDIATION, RECLAMATION, SHELF. sultation with the Secretary of the Depart- OR CLOSURE OF WELL PURSUANT TO AN AP- (a) AMENDMENT TO OUTER CONTINENTAL ment in which the Coast Guard is operating PROVED REMEDIATION PLAN.— SHELF LANDS ACT.—Section 8 of the Outer and other relevant agencies of the Federal (A) DEFINITION OF REMEDIATING PARTY.—In Continental Shelf Lands Act (43 U.S.C. 1337) Government and affected States, shall issue this paragraph the term ‘‘remediating is amended by adding at the end the fol- any necessary regulations to ensure safety, party’’ means a person who remediates, re- lowing: protection of the environment, prevention of claims, or closes an abandoned, orphaned, or ‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF- waste, and conservation of the natural re- idled well pursuant to this subsection. WAY FOR ENERGY AND RELATED PURPOSES.— sources of the outer Continental Shelf, pro- (B) GENERAL RULE.—A remediating party ‘‘(1) IN GENERAL.—The Secretary, in con- tection of national security interests, and who remediates, reclaims, or closes an aban- sultation with the Secretary of the Depart- protection of correlative rights in the outer doned, orphaned, or idled well in accordance ment in which the Coast Guard is operating Continental Shelf. with a detailed written remediation plan ap- and other relevant departments and agencies ‘‘(6) SECURITY.—The Secretary shall re- proved by the Secretary under this sub- of the Federal Government, may grant a quire the holder of a lease, easement, or section, shall be immune from civil liability lease, easement, or right-of-way on the outer right-of-way granted under this subsection under Federal environmental laws, for— Continental Shelf for activities not other- to furnish a surety bond or other form of se- (i) pre-existing environmental conditions wise authorized in this Act, the Deepwater curity, as prescribed by the Secretary, and at or associated with the well, unless the re- Port Act of 1974 (33 U.S.C. 1501 et seq.), the to comply with such other requirements as mediating party owns or operates, in the Ocean Thermal Energy Conversion Act of the Secretary considers necessary to protect past owned or operated, or is related to a 1980 (42 U.S.C. 9101 et seq.), or other applica- the interests of the United States. person that owns or operates or in the past ble law, if those activities— ‘‘(7) EFFECT OF SUBSECTION.—Nothing in owned or operated, the well or the land on ‘‘(A) support exploration, development, this subsection displaces, supersedes, limits, which the well is located; or production, transportation, or storage of oil, or modifies the jurisdiction, responsibility, (ii) any remaining releases of pollutants natural gas, or other minerals; or authority of any Federal or State agency from the well during or after completion of ‘‘(B) produce or support production, trans- under any other Federal law. the remediation, reclamation, or closure of portation, or transmission of energy from ‘‘(8) APPLICABILITY.—This subsection does the well, unless the remediating party causes sources other than oil and gas; or not apply to any area on the outer Conti- increased pollution as a result of activities ‘‘(C) use, for energy-related or marine-re- nental Shelf designated as a National Marine that are not in accordance with the approved lated purposes, facilities currently or pre- Sanctuary.’’. remediation plan. viously used for activities authorized under (b) CONFORMING AMENDMENT.—Section 8 of (C) LIMITATIONS.—Nothing in this section this Act. the Outer Continental Shelf Lands Act (43 shall limit in any way the liability of a re- ‘‘(2) PAYMENTS.—The Secretary shall estab- U.S.C. 1337) is amended by striking the sec- mediating party for injury, damage, or pollu- lish reasonable forms of payments for any tion heading and inserting the following: tion resulting from the remediating party’s easement or right-of-way granted under this ‘‘LEASES, EASEMENTS, AND RIGHTS-OF-WAY ON acts or omissions that are not in accordance subsection. Such payments shall not be as- THE OUTER CONTINENTAL SHELF.—’’. with the approved remediation plan, are sessed on the basis of throughput or produc- (c) SAVINGS PROVISION.—Nothing in the reckless or willful, constitute gross neg- tion. The Secretary may establish fees, rent- amendment made by subsection (a) requires, ligence or wanton misconduct, or are unlaw- als, bonus, or other payments by rule or by with respect to any project— ful. agreement with the party to which the lease, (1) for which offshore test facilities have (4) REGULATIONS.—The Secretary may issue easement, or right-of-way is granted. If a been constructed before the date of enact- such regulations as are appropriate to carry lease, easement, right-of-way, license, or ment of this Act; or out this subsection. permit under this subsection covers a spe- (2) for which a request for proposals has (h) AUTHORIZATION OF APPROPRIATIONS.— cific tract of, or regards a facility located been issued by a public authority, (1) IN GENERAL.—There are authorized to be on, the outer Continental Shelf and is not an appropriated to carry out this section easement or right-of-way for transmission or any resubmittal of documents previously $25,000,000 for each of fiscal years 2006 transportation of energy, minerals, or other submitted or any reauthorization of actions through 2010. natural resources, the Secretary shall pay 50 previously authorized.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00154 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.067 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2307 SEC. 2011. PRESERVATION OF GEOLOGICAL AND (B) Review and critique the draft imple- after ‘‘acreage held in special tar sand areas’’ GEOPHYSICAL DATA. mentation plan prepared by the Secretary the following: ‘‘, and acreage under any lease (a) SHORT TITLE.—This section may be under subsection (c). any portion of which has been committed to cited as the ‘‘National Geological and Geo- (C) Identify useful studies of data archived a federally approved unit or cooperative plan physical Data Preservation Program Act of under the Program that will advance under- or communitization agreement or for which 2005’’. standing of the Nation’s energy and mineral royalty (including compensatory royalty or (b) PROGRAM.—The Secretary shall carry resources, geologic hazards, and engineering royalty in-kind) was paid in the preceding out a National Geological and Geophysical geology. calendar year,’’. Data Preservation Program in accordance (D) Review the progress of the Program in SEC. 2013. DEADLINE FOR DECISION ON APPEALS with this section— archiving significant data and preventing OF CONSISTENCY DETERMINATION (1) to archive geologic, geophysical, and the loss of such data, and the scientific UNDER THE COASTAL ZONE MAN- engineering data, maps, well logs, and sam- progress of the studies funded under the Pro- AGEMENT ACT OF 1972. ples; gram. (a) IN GENERAL.—Section 319 of the Coastal (2) to provide a national catalog of such ar- (E) Include in the annual report to the Sec- Zone Management Act of 1972 (16 U.S.C. 1465) chival material; and retary required under section 5(b)(3) of the is amended to read as follows: (3) to provide technical and financial as- National Geologic Mapping Act of 1992 (43 ‘‘APPEALS TO THE SECRETARY sistance related to the archival material. U.S.C. 31d(b)(3)) an evaluation of the ‘‘SEC. 319. (a) NOTICE.—The Secretary shall (c) PLAN.—Not later than 1 year after the progress of the Program toward fulfilling the publish an initial notice in the Federal Reg- date of enactment of this Act, the Secretary purposes of the Program under subsection ister not later than 30 days after the date of shall submit to Congress a plan for the im- (b). the filing of any appeal to the Secretary of a plementation of the Program. (g) FINANCIAL ASSISTANCE.— consistency determination under section 307. (d) DATA ARCHIVE SYSTEM.— (1) ARCHIVE FACILITIES.—Subject to the ‘‘(b) CLOSURE OF RECORD.— (1) ESTABLISHMENT.—The Secretary shall availability of appropriations, the Secretary ‘‘(1) IN GENERAL.—Not later than the end of establish, as a component of the Program, a shall provide financial assistance to a State the 120-day period beginning on the date of data archive system to provide for the stor- agency that is designated under subsection publication of an initial notice under sub- age, preservation, and archiving of sub- (d)(2) for providing facilities to archive en- section (a), the Secretary shall receive no surface, surface, geological, geophysical, and ergy material. more filings on the appeal and the adminis- engineering data and samples. The Sec- (2) STUDIES.—Subject to the availability of trative record regarding the appeal shall be retary, in consultation with the Advisory appropriations, the Secretary shall provide closed. Committee, shall develop guidelines relating financial assistance to any State agency des- ‘‘(2) NOTICE.—Upon the closure of the ad- to the data archive system, including the ignated under subsection (d)(2) for studies ministrative record, the Secretary shall im- types of data and samples to be preserved. and technical assistance activities that en- mediately publish a notice that the adminis- (2) SYSTEM COMPONENTS.—The system shall hance understanding, interpretation, and use trative record has been closed. be comprised of State agencies that elect to of materials archived in the data archive ‘‘(c) DEADLINE FOR DECISION.—The Sec- be part of the system and agencies within system established under subsection (d). retary shall issue a decision in any appeal the Department of the Interior that main- (3) FEDERAL SHARE.—The Federal share of filed under section 307 not later than 120 tain geological and geophysical data and the cost of an activity carried out with as- days after the closure of the administrative samples that are designated by the Secretary sistance under this subsection shall be not record. in accordance with this subsection. The Pro- more than 50 percent of the total cost of the ‘‘(d) APPLICATION.—This section applies to gram shall provide for the storage of data activity. appeals initiated by the Secretary and ap- and samples through data repositories oper- (4) PRIVATE CONTRIBUTIONS.—The Secretary peals filed by an applicant.’’. ated by such agencies. shall apply to the non-Federal share of the (b) APPLICATION.— (3) LIMITATION OF DESIGNATION.—The Sec- cost of an activity carried out with assist- (1) IN GENERAL.—Except as provided in retary may not designate a State agency as ance under this subsection the value of pri- paragraph (2), the amendment made by sub- a component of the data archive system un- vate contributions of property and services section (a) shall apply with respect to any less that agency is the agency that acts as used for that activity. appeal initiated or filed before, on, or after the geological survey in the State. (h) REPORT.—The Secretary shall include the date of enactment of this Act. (4) DATA FROM FEDERAL LAND.—The data in each report under section 8 of the Na- (2) LIMITATION.—Subsection (a) of section archive system shall provide for the tional Geologic Mapping Act of 1992 (43 319 of the Coastal Zone Management Act of archiving of relevant subsurface data and U.S.C. 31g)— 1972 (as amended by subsection (a)) shall not samples obtained from Federal land— (1) a description of the status of the Pro- apply with respect to an appeal initiated or (A) in the most appropriate repository des- gram; filed before the date of enactment of this ignated under paragraph (2), with preference (2) an evaluation of the progress achieved Act. being given to archiving data in the State in in developing the Program during the period (c) CLOSURE OF RECORD FOR APPEAL FILED which the data were collected; and covered by the report; and BEFORE DATE OF ENACTMENT.—Notwith- (B) consistent with all applicable law and (3) any recommendations for legislative or standing section 319(b)(1) of the Coastal Zone requirements relating to confidentiality and other action the Secretary considers nec- Management Act of 1972 (as amended by this proprietary data. essary and appropriate to fulfill the purposes section), in the case of an appeal of a consist- of the Program under subsection (b). (e) NATIONAL CATALOG.— ency determination under section 307 of that (i) MAINTENANCE OF STATE EFFORT.—It is Act initiated or filed before the date of en- (1) IN GENERAL.—As soon as practicable the intent of Congress that the States not after the date of enactment of this Act, the actment of this Act, the Secretary of Com- use this section as an opportunity to reduce merce shall receive no more filings on the Secretary shall develop and maintain, as a State resources applied to the activities that component of the Program, a national cata- appeal and the administrative record regard- are the subject of the Program. ing the appeal shall be closed not later than log that identifies— (j) DEFINITIONS.—In this section: 120 days after the date of enactment of this (A) data and samples available in the data (1) ADVISORY COMMITTEE.—The term ‘‘Advi- Act. archive system established under subsection sory Committee’’ means the advisory com- (d); mittee established under section 5 of the Na- SEC. 2014. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND (B) the repository for particular material tional Geologic Mapping Act of 1992 (43 in the system; and STUDIES. U.S.C. 31d). (a) IN GENERAL.—The Mineral Leasing Act (C) the means of accessing the material. (2) PROGRAM.—The term ‘‘Program’’ means (2) AVAILABILITY.—The Secretary shall is amended by inserting after section 37 (30 the National Geological and Geophysical U.S.C. 193) the following: make the national catalog accessible to the Data Preservation Program carried out ‘‘REIMBURSEMENT FOR COSTS OF CERTAIN public on the site of the Survey on the Inter- under this section. ANALYSES, DOCUMENTATION, AND STUDIES net, consistent with all applicable require- (3) SECRETARY.—The term ‘‘Secretary’’ ments related to confidentiality and propri- means the Secretary of the Interior, acting ‘‘SEC. 38. (a) IN GENERAL.—The Secretary etary data. through the Director of the United States of the Interior shall issue regulations under (f) ADVISORY COMMITTEE.— Geological Survey. which the Secretary shall reimburse a person (1) IN GENERAL.—The Advisory Committee (4) SURVEY.—The term ‘‘Survey’’ means that is a lessee, operator, operating rights shall advise the Secretary on planning and the United States Geological Survey. owner, or applicant for any lease under this implementation of the Program. (k) AUTHORIZATION OF APPROPRIATIONS.— Act for reasonable amounts paid by the per- (2) NEW DUTIES.—In addition to its duties There are authorized to be appropriated to son for preparation for the Secretary by a under the National Geologic Mapping Act of carry out this section $30,000,000 for each of contractor or other person selected by the 1992 (43 U.S.C. 31a et seq.), the Advisory Com- fiscal years 2006 through 2010. Secretary of any project-level analysis, doc- mittee shall perform the following duties: SEC. 2012. OIL AND GAS LEASE ACREAGE LIMITA- umentation, or related study required pursu- (A) Advise the Secretary on developing TIONS. ant to the National Environmental Policy guidelines and procedures for providing as- Section 27(d)(1) of the Mineral Leasing Act Act of 1969 (42 U.S.C. 4321 et seq.) with re- sistance for facilities under subsection (g)(1). (30 U.S.C. 184(d)(1)) is amended by inserting spect to the lease.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00155 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.067 H20PT1 H2308 CONGRESSIONAL RECORD — HOUSE April 20, 2005

‘‘(b) CONDITIONS.—The Secretary may pro- (e) GAS HYDRATE RESOURCES DEFINED.—In (2) to promote oil and natural gas produc- vide reimbursement under subsection (a) this section, the term ‘‘gas hydrate re- tion from the abundant resources on the only if— sources’’ includes both the natural gas con- outer Continental Shelf and onshore Federal ‘‘(1) adequate funding to enable the Sec- tent of gas hydrates within the hydrate sta- lands by enhancing recovery of oil or natural retary to timely prepare the analysis, docu- bility zone and free natural gas trapped by gas (or both). mentation, or related study is not appro- and beneath the hydrate stability zone. (c) SUSPENSION OF ROYALTIES.— priated; SEC. 2016. ONSHORE DEEP GAS PRODUCTION IN- (1) IN GENERAL.—The Secretary of the Inte- ‘‘(2) the person paid the costs voluntarily; CENTIVE. rior shall grant a royalty relief in accord- ‘‘(3) the person maintains records of its (a) PURPOSE.—The purpose of this section ance with this section for production of oil costs in accordance with regulations issued is to promote natural gas production from or natural gas (or both) from lands subject to by the Secretary; the abundant onshore deep gas resources on an eligible lease into which the lessee injects ‘‘(4) the reimbursement is in the form of a Federal lands by providing royalty incen- carbon dioxide, or other appropriate gas or reduction in the Federal share of the royalty tives. other matter approved by the Secretary, for required to be paid for the lease for which (b) SUSPENSION OF ROYALTIES.— the purpose of enhancing recovery of oil or the analysis, documentation, or related (1) IN GENERAL.—The Secretary shall grant natural gas (or both) from the eligible lease. study is conducted, and is agreed to by the royalty relief in accordance with this section (2) ELIGIBLE LEASES.—A lease shall be an Secretary and the person reimbursed prior to for natural gas produced from deep wells eligible lease for purposes of this section if it commencing the analysis, documentation, or spudded after the date of enactment of this is a lease for production of oil or gas (or related study; and Act under any onshore Federal oil and gas both) from Federal outer Continental Shelf ‘‘(5) the agreement required under para- lease. or onshore lands that the Secretary deter- graph (4) contains provisions— (2) AMOUNT OF RELIEF.—The Secretary mines may contain a volume of oil or nat- ‘‘(A) reducing royalties owed on lease pro- shall grant royalty relief under this section ural gas that would not likely be produced duction based on market prices; as a suspension volume determined by the without royalty relief under this subsection. ‘‘(B) stipulating an automatic termination Secretary in an amount necessary to maxi- (3) AMOUNT OF RELIEF.—The Secretary of the royalty reduction upon recovery of mize production of natural gas volumes. The shall grant royalty relief under this section documented costs; and maximum suspension volume shall be 50 bil- as a suspension volume determined by the ‘‘(C) providing a process by which the les- lion cubic feet of natural gas per lease. Such Secretary in an amount necessary to maxi- see may seek reimbursement for cir- royalty suspension volume shall be applied mize production of oil and natural gas vol- cumstances in which production from the beginning with the first dollar of royalty ob- umes. The maximum suspension volume specified lease is not possible.’’. ligation for production on or after the date shall be 50 billion cubic feet of natural gas, (b) APPLICATION.—The amendment made by of enactment of this Act. or equivalent oil volume on a Btu basis, or a this section shall apply with respect to an combination thereof, per eligible lease. analysis, documentation, or a related study (3) LIMITATION.—The Secretary may place (4) LIMITATION.—The Secretary may place conducted on or after the date of enactment limitations on the suspension of royalty re- limitations on the suspension of royalty re- of this Act for any lease entered into before, lief granted based on market price. lief granted based on market price. on, or after the date of enactment of this (c) APPLICATION.—This section shall apply to any onshore Federal oil and gas lease (d) APPLICATION.—This section shall apply Act. to any eligible lease issued before, on, or (c) DEADLINE FOR REGULATIONS.—The Sec- issued before, on, or after the date of enact- after the date of enactment of this Act. retary shall issue regulations implementing ment of this Act. (e) RULEMAKINGS.—The Secretary shall the amendment made by this section by not (d) RULEMAKINGS.— complete any rulemakings implementing later than 1 year after the date of enactment (1) REQUIREMENT.—The Secretary shall this provision within 1 year after the date of of this Act. complete any rulemakings implementing enactment of this Act. SEC. 2015. GAS HYDRATE PRODUCTION INCEN- this section within 1 year after the date of SEC. 2018. OIL SHALE. TIVE. enactment of this Act. (a) FINDING.—Congress finds that oil shale (a) PURPOSE.—The purpose of this section (2) DEFINITION OF DEEP WELL.—Such regula- resources located within the United States— is to promote natural gas production from tions shall include a definition of the term (1) total almost 2 trillion barrels of oil in the abundant natural gas hydrate resources ‘‘deep well’’ for purposes of this section. on the outer Continental Shelf and Federal place; and SEC. 2017. ENHANCED OIL AND NATURAL GAS (2) are a strategically important domestic lands in Alaska by providing royalty incen- PRODUCTION INCENTIVE. tives. resource that should be developed on an ac- (a) FINDINGS.—Congress finds the fol- celerated basis to reduce our growing reli- (b) SUSPENSION OF ROYALTIES.— lowing: (1) IN GENERAL.—The Secretary of the Inte- ance on politically and economically unsta- (1) Approximately two-thirds of the origi- ble sources of foreign oil imports. rior shall grant royalty relief in accordance nal oil in place in the United States remains with this section for natural gas produced (b) REQUIREMENT TO DEVELOP OIL SHALE unproduced. from gas hydrate resources under any lease LEASING PROGRAM.—The Secretary of the In- (2) Enhanced oil and natural gas produc- that is an eligible lease under paragraph (2). terior shall develop a Federal commercial oil tion from the sequestering of carbon dioxide (2) ELIGIBLE LEASES.—A lease shall be an shale leasing program as soon as practicable and other appropriate gases has the poten- eligible lease for purposes of this section if— and publish a final regulation implementing tial to increase oil and natural gas produc- (A) it is issued under the Outer Conti- such program by not later than December 31, tion in the United States by 2 million barrels nental Shelf Lands Act (43 U.S.C. 1331 et 2006. of oil equivalent per day, or more. seq.), or is an oil and gas lease issued for on- (c) COMMENCEMENT OF LEASE SALES.—The (3) Collection of carbon dioxide and other shore Federal lands in Alaska; Secretary shall hold the first oil shale lease appropriate gases from industrial facilities (B) it is issued prior to January 1, 2016; and sale under such program within 180 days (C) production under the lease of natural could provide a significant source of these after publishing the final regulation. gas from the gas hydrate resources com- gases that could be permanently sequestered (d) REPORT.—Within 90 days after the date mences prior to January 1, 2018. into oil and natural gas fields. of enactment of this Act, the Secretary shall (4) Such collection could be made economic (3) AMOUNT OF RELIEF.—The Secretary report to the Committee on Resources of the shall grant royalty relief under this section by providing production incentives to oil and House of Representatives and the Committee as a suspension volume of at least 50 billion natural gas lessees. on Energy and Natural Resources of the Sen- cubic feet of natural gas produced from gas (5) Providing production incentives for en- ate on— hydrate resources per 9 square mile leased hanced oil and natural gas production would (1) the interim actions necessary to— tract. Such relief shall be in addition to any promote significant advances in emissions (A) develop the program under subsection other royalty relief under any other provi- control and capture technology. (b); sion applicable to the lease that does not (6) Capturing and productively using indus- (B) promulgate the final regulation under specifically grant a gas hydrate production trial emissions of carbon dioxide would help subsection (b); and incentive. The minimum suspension volume reduce the carbon intensity of the economy. (C) conduct the first lease sale under the under this section for leased tracts that are (7) Enhanced production of oil and natural program under subsection (b); and smaller or larger than nine square miles gas lessens the potential for environmental (2) a schedule for completing such actions. shall be adjusted on a proportional basis. impacts when compared with development of (e) OIL SHALE LAND EXCHANGES.— (4) LIMITATION.—The Secretary may place new oil and natural gas fields because the in- (1) REQUIREMENT.—The Secretary shall limitations on the suspension of royalty re- frastructure, such as wells, pipelines, and identify and pursue to completion oil shale lief granted based on market price. platforms, is generally already in place. land exchanges, on a value-for-value basis, (c) APPLICATION.—This section shall apply (b) PURPOSE.—The purpose of this section that will allow qualified oil shale developers to any eligible lease issued before, on, or is— to have early access to currently owned Fed- after the date of enactment of this Act. (1) to promote the capturing, transpor- eral oil shale lands and to commence com- (d) RULEMAKINGS.—The Secretary shall tation, and injection of produced carbon di- mercial oil shale development. complete any rulemakings implementing oxide, natural carbon dioxide, and other ap- (2) APPLICABLE LAW.—The Secretary shall this section within 1 year after the date of propriate gases for sequestration into oil and conduct land exchanges under this sub- enactment of this Act. gas fields; and section in accordance with the Federal Land

VerDate jul 14 2003 05:46 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00156 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.067 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2309 Policy Management Act of 1976 (43 U.S.C. retary of the Interior and the Secretary of essing surface use plans and applications for 1701 et seq.) and the Federal Land Exchange Agriculture shall transmit a report to Con- permits to drill consistent with the Facilitation Act of 1988 (43 U.S.C. 1701 note). gress that describes— timelines established by the amendment SEC. 2019. USE OF INFORMATION ABOUT OIL AND (1) actions taken under section 3 of Execu- made by section 2028; GAS PUBLIC CHALLENGES. tive Order No. 13212 (42 U.S.C. 13201 note); (2) eliminate duplication of effort by pro- (a) FINDINGS.—Congress finds the fol- and viding for coordination of planning and envi- lowing: (2) actions taken or any plans to improve ronmental compliance efforts; and (1) The Government Accountability Office the Federal onshore oil and gas leasing pro- (3) ensure that lease stipulations are— (in this section referred to as the ‘‘GAO’’), in gram. (A) applied consistently; report GAO–05–124, found that the Bureau of SEC. 2023. MANAGEMENT OF FEDERAL OIL AND (B) coordinated between agencies; and Land Management does not systematically GAS LEASING PROGRAMS. (C) only as restrictive as necessary to pro- gather and use nationwide information on (a) TIMELY ACTION ON LEASES AND PER- tect the resource for which the stipulations public challenges to manage its oil and gas MITS.—To ensure timely action on oil and are applied. program. gas leases and applications for permits to (c) DATA RETRIEVAL SYSTEM.— (2) The GAO found that this failure pre- drill on land otherwise available for leasing, (1) IN GENERAL.—Not later than 1 year after vents the Director of the Bureau from assess- the Secretary of the Interior (in this section the date of enactment of this Act, the Sec- ing the impact of public challenges on the referred to as the ‘‘Secretary’’) shall— retary of the Interior and the Secretary of workload of the Bureau of Land Management (1) ensure expeditious compliance with sec- Agriculture shall establish a joint data re- State offices and eliminates the ability of tion 102(2)(C) of the National Environmental trieval system that is capable of— the Director to make appropriate staffing Policy Act of 1969 (42 U.S.C. 4332(2)(C)); (A) tracking applications and formal re- and funding resource allocation decisions. (2) improve consultation and coordination quests made in accordance with procedures (b) REQUIREMENT.—The Secretary of the In- with the States and the public; and of the Federal onshore oil and gas leasing terior and the Secretary of Agriculture shall (3) improve the collection, storage, and re- program; and systematically collect and use nationwide trieval of information relating to the leasing (B) providing information regarding the information on public challenges to manage activities. status of the applications and requests with- the oil and gas programs of the bureaus (b) BEST MANAGEMENT PRACTICES.— in the Department of the Interior and the within their departments. The Secretaries (1) IN GENERAL.—Not later than 18 months Department of Agriculture. shall gather such information at the plan- after the date of enactment of this Act, the (2) RESOURCE MAPPING.—Not later than 2 ning, leasing, exploration, and development Secretary shall develop and implement best years after the date of enactment of this stages, and shall maintain such information management practices to— Act, the Secretary of the Interior and the electronically with current data. (A) improve the administration of the on- Secretary of Agriculture shall establish a Subtitle B—Access to Federal Land shore oil and gas leasing program under the joint Geographic Information System map- SEC. 2021. OFFICE OF FEDERAL ENERGY Mineral Leasing Act (30 U.S.C. 181 et seq.); ping system for use in— PROJECT COORDINATION. and (A) tracking surface resource values to aid (a) ESTABLISHMENT.—The President shall (B) ensure timely action on oil and gas in resource management; and establish the Office of Federal Energy leases and applications for permits to drill (B) processing surface use plans of oper- Project Coordination (referred to in this sec- on lands otherwise available for leasing. ation and applications for permits to drill. tion as the ‘‘Office’’) within the Executive (2) CONSIDERATIONS.—In developing the Office of the President in the same manner best management practices under paragraph SEC. 2025. ESTIMATES OF OIL AND GAS RE- (1), the Secretary shall consider any rec- SOURCES UNDERLYING ONSHORE and with the same mission as the White FEDERAL LAND. House Energy Projects Task Force estab- ommendations from the review under section lished by Executive Order No. 13212 (42 U.S.C. 2022. (a) ASSESSMENT.—Section 604 of the Energy 13201 note). (3) REGULATIONS.—Not later than 180 days Act of 2000 (42 U.S.C. 6217) is amended— (b) STAFFING.—The Office shall be staffed after the development of best management (1) in subsection (a)— by functional experts from relevant Federal practices under paragraph (1), the Secretary (A) in paragraph (1)— agencies on a nonreimbursable basis to carry shall publish, for public comment, proposed (i) by striking ‘‘reserve’’; and out the mission of the Office. regulations that set forth specific time- (ii) by striking ‘‘and’’ after the semicolon; (c) REPORT.—The Office shall transmit an frames for processing leases and applications and annual report to Congress that describes the in accordance with the practices, including (B) by striking paragraph (2) and inserting activities put in place to coordinate and ex- deadlines for— the following: pedite Federal decisions on energy projects. (A) approving or disapproving resource ‘‘(2) the extent and nature of any restric- The report shall list accomplishments in im- management plans and related documents, tions or impediments to the development of proving the Federal decisionmaking process lease applications, and surface use plans; and the resources, including— and shall include any additional rec- (B) related administrative appeals. ‘‘(A) impediments to the timely granting ommendations or systemic changes needed (c) IMPROVED ENFORCEMENT.—The Sec- of leases; to establish a more effective and efficient retary shall improve inspection and enforce- ‘‘(B) post-lease restrictions, impediments, Federal permitting process. ment of oil and gas activities, including en- or delays on development for conditions of SEC. 2022. FEDERAL ONSHORE OIL AND GAS forcement of terms and conditions in permits approval, applications for permits to drill, or LEASING AND PERMITTING PRAC- to drill. processing of environmental permits; and TICES. (d) AUTHORIZATION OF APPROPRIATIONS.—In ‘‘(C) permits or restrictions associated (a) REVIEW OF ONSHORE OIL AND GAS LEAS- addition to amounts authorized to be appro- with transporting the resources for entry ING PRACTICES.— priated to carry out section 17 of the Mineral into commerce; and (1) IN GENERAL.—The Secretary of the Inte- Leasing Act (30 U.S.C. 226), there are author- ‘‘(3) the quantity of resources not produced rior, in consultation with the Secretary of ized to be appropriated to the Secretary for or introduced into commerce because of the Agriculture with respect to National Forest each of fiscal years 2006 through 2009— restrictions.’’; System lands under the jurisdiction of the (1) $40,000,000 to carry out subsections (a) (2) in subsection (b)— Department of Agriculture, shall perform an and (b); and (A) by striking ‘‘reserve’’ and inserting internal review of current Federal onshore (2) $20,000,000 to carry out subsection (c). ‘‘resource’’; and oil and gas leasing and permitting practices. SEC. 2024. CONSULTATION REGARDING OIL AND (B) by striking ‘‘publically’’ and inserting (2) INCLUSIONS.—The review shall include GAS LEASING ON PUBLIC LAND. ‘‘publicly’’; and the process for— (a) IN GENERAL.—Not later than 180 days (3) by striking subsection (d) and inserting (A) accepting or rejecting offers to lease; after the date of enactment of this Act, the the following: (B) administrative appeals of decisions or Secretary of the Interior and the Secretary ‘‘(d) ASSESSMENTS.—Using the inventory, orders of officers or employees of the Bureau of Agriculture shall enter into a memo- of Land Management with respect to a Fed- randum of understanding regarding oil and the Secretary of Energy shall make periodic eral oil or gas lease; gas leasing on— assessments of economically recoverable re- (C) considering surface use plans of oper- (1) public lands under the jurisdiction of sources accounting for a range of parameters ation, including the timeframes in which the the Secretary of the Interior; and such as current costs, commodity prices, plans are considered, and any recommenda- (2) National Forest System lands under the technology, and regulations.’’. tions for improving and expediting the proc- jurisdiction of the Secretary of Agriculture. (b) METHODOLOGY.—The Secretary of the ess; and (b) CONTENTS.—The memorandum of under- Interior shall use the same assessment meth- (D) identifying stipulations to address site- standing shall include provisions that— specific concerns and conditions, including (1) establish administrative procedures and odology across all geological provinces, those stipulations relating to the environ- lines of authority that ensure timely proc- areas, and regions in preparing and issuing ment and resource use conflicts. essing of oil and gas lease applications, sur- national geological assessments to ensure (b) REPORT.—Not later than 180 days after face use plans of operation, and applications accurate comparisons of geological re- the date of enactment of this Act, the Sec- for permits to drill, including steps for proc- sources.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00157 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.068 H20PT1 H2310 CONGRESSIONAL RECORD — HOUSE April 20, 2005 SEC. 2026. COMPLIANCE WITH EXECUTIVE ORDER (1) Rawlins, Wyoming. to the Secretary of the Interior or the Sec- 13211; ACTIONS CONCERNING REGU- (2) Buffalo, Wyoming. retary of Agriculture, respectively, a report LATIONS THAT SIGNIFICANTLY AF- (3) Miles City, Montana that— FECT ENERGY SUPPLY, DISTRIBU- (4) Farmington, New Mexico. ‘‘(1) specifies the number of applications TION, OR USE. (5) Carlsbad, New Mexico. for permits to drill received by the field of- (a) REQUIREMENT.—The head of each Fed- (6) Glenwood Springs, Colorado. fice in the period covered by the report; and eral agency shall require that before the (7) Vernal, Utah. ‘‘(2) describes how each of the applications Federal agency takes any action that could (e) REPORTS.—Not later than 3 years after was disposed of by the field office in accord- have a significant adverse effect on the sup- the date of enactment of this Act, the Sec- ance with subsection (p).’’. ply of domestic energy resources from Fed- retary shall transmit to Congress a report eral public land, the Federal agency taking SEC. 2029. CLARIFICATION OF FAIR MARKET that— RENTAL VALUE DETERMINATIONS the action shall comply with Executive (1) outlines the results of the Pilot Project FOR PUBLIC LAND AND FOREST Order No. 13211 (42 U.S.C. 13201 note). to date; and SERVICE RIGHTS-OF-WAY. (b) GUIDANCE.—Not later than 180 days (2) makes a recommendation to the Presi- (a) LINEAR RIGHTS-OF-WAY UNDER FEDERAL after the date of enactment of this Act, the dent regarding whether the Pilot Project LAND POLICY AND MANAGEMENT ACT OF Secretary of Energy shall publish guidance should be implemented throughout the 1976.—Section 504 of the Federal Land Policy for purposes of this section describing what United States. and Management Act of 1976 (43 U.S.C. 1764) constitutes a significant adverse effect on (f) ADDITIONAL PERSONNEL.—The Secretary is amended by adding at the end the fol- the supply of domestic energy resources shall assign to each field office identified in lowing: under Executive Order No. 13211 (42 U.S.C. subsection (d) any additional personnel that ‘‘(k) DETERMINATION OF FAIR MARKET 13201 note). are necessary to ensure the effective imple- VALUE OF LINEAR RIGHTS-OF-WAY.— (c) MEMORANDUM OF UNDERSTANDING.—The mentation of— ‘‘(1) IN GENERAL.—Effective beginning on Secretary of the Interior and the Secretary (1) the Pilot Project; and the date of the issuance of the rules required of Agriculture shall include in the memo- (2) other programs administered by the by paragraph (2), for purposes of subsection randum of understanding under section 2024 field offices, including inspection and en- (g), the Secretary concerned shall determine provisions for implementing subsection (a) of forcement relating to energy development on the fair market value for the use of land en- this section. Federal land, in accordance with the mul- cumbered by a linear right-of-way granted, SEC. 2027. PILOT PROJECT TO IMPROVE FED- tiple use mandate of the Federal Land Policy issued, or renewed under this title using the ERAL PERMIT COORDINATION. and Management Act of 1976 (43 U.S.C. 1701 et valuation method described in paragraphs (a) ESTABLISHMENT.—The Secretary of the seq). (2), (3), and (4). Interior (in this section referred to as the (g) SAVINGS PROVISION.—Nothing in this ‘‘(2) REVISIONS.—Not later than 1 year after ‘‘Secretary’’) shall establish a Federal Per- section affects— the date of enactment of this subsection— mit Streamlining Pilot Project (in this sec- (1) the operation of any Federal or State ‘‘(A) the Secretary of the Interior shall tion referred to as the ‘‘Pilot Project’’). law; or amend section 2803.1–2 of title 43, Code of (b) MEMORANDUM OF UNDERSTANDING.— (2) any delegation of authority made by Federal Regulations, as in effect on the date (1) IN GENERAL.—Not later than 90 days the head of a Federal agency whose employ- of enactment of this subsection, to revise the after the date of enactment of this Act, the ees are participating in the Pilot Project. per acre rental fee zone value schedule by Secretary shall enter into a memorandum of SEC. 2028. DEADLINE FOR CONSIDERATION OF State, county, and type of linear right-of- understanding with the Secretary of Agri- APPLICATIONS FOR PERMITS. way use to reflect current values of land in culture, the Administrator of the Environ- Section 17 of the Mineral Leasing Act (30 each zone; and mental Protection Agency, and the Chief of U.S.C. 226) is amended by adding at the end ‘‘(B) the Secretary of Agriculture shall Engineers of the Army Corps of Engineers the following: make the same revision for linear rights-of- for purposes of this section. ‘‘(p) DEADLINES FOR CONSIDERATION OF AP- way granted, issued, or renewed under this (2) STATE PARTICIPATION.—The Secretary PLICATIONS FOR PERMITS.— title on National Forest System land. may request that the Governors of Wyoming, ‘‘(1) IN GENERAL.—Not later than 10 days ‘‘(3) UPDATES.—The Secretary concerned Montana, Colorado, Utah, and New Mexico after the date on which the Secretary re- shall annually update the schedule revised be signatories to the memorandum of under- ceives an application for any permit to drill, under paragraph (2) by multiplying the cur- standing. the Secretary shall— rent year’s rental per acre by the annual (c) DESIGNATION OF QUALIFIED STAFF.— ‘‘(A) notify the applicant that the applica- change, second quarter to second quarter (1) IN GENERAL.—Not later than 30 days tion is complete; or (June 30 to June 30) in the Gross National after the date of the signing of the memo- ‘‘(B) notify the applicant that information Product Implicit Price Deflator Index pub- randum of understanding under subsection is missing and specify any information that lished in the Survey of Current Business of (b), all Federal signatory parties shall assign is required to be submitted for the applica- the Department of Commerce, Bureau of to each of the field offices identified in sub- tion to be complete. Economic Analysis. section (d), on a nonreimbursable basis, an ‘‘(2) ISSUANCE OR DEFERRAL.—Not later ‘‘(4) REVIEW.—If the cumulative change in employee who has expertise in the regu- than 30 days after the applicant for a permit the index referred to in paragraph (3) exceeds latory issues relating to the office in which has submitted a complete application, the 30 percent, or the change in the 3-year aver- the employee is employed, including, as ap- Secretary shall— age of the 1-year Treasury interest rate used plicable, particular expertise in— ‘‘(A) issue the permit; or to determine per acre rental fee zone values (A) the consultations and the preparation ‘‘(B)(i) defer decision on the permit; and exceeds plus or minus 50 percent, the Sec- of biological opinions under section 7 of the ‘‘(ii) provide to the applicant a notice that retary concerned shall conduct a review of Endangered Species Act of 1973 (16 U.S.C. specifies any steps that the applicant could the zones and rental per acre figures to de- 1536); take for the permit to be issued. termine whether the value of Federal land (B) permits under section 404 of Federal ‘‘(3) REQUIREMENTS FOR DEFERRED APPLICA- has differed sufficiently from the index re- Water Pollution Control Act (33 U.S.C. 1344); TIONS.— ferred to in paragraph (3) to warrant a revi- (C) regulatory matters under the Clean Air ‘‘(A) IN GENERAL.—If the Secretary pro- sion in the base zones and rental per acre fig- Act (42 U.S.C. 7401 et seq.); vides notice under paragraph (2)(B)(ii), the ures. If, as a result of the review, the Sec- (D) planning under the National Forest applicant shall have a period of 2 years from retary concerned determines that such a re- Management Act of 1976 (16 U.S.C. 472a et the date of receipt of the notice in which to vision is warranted, the Secretary concerned seq.); and complete all requirements specified by the shall revise the base zones and rental per (E) the preparation of analyses under the Secretary, including providing information acre figures accordingly. Any revision of National Environmental Policy Act of 1969 needed for compliance with the National En- base zones and rental per acre figure shall (42 U.S.C. 4321 et seq.). vironmental Policy Act of 1969 (42 U.S.C. 4321 only affect lease rental rates at inception or (2) DUTIES.—Each employee assigned under et seq.). renewal.’’. paragraph (1) shall— ‘‘(B) ISSUANCE OF DECISION ON PERMIT.—If (b) RIGHTS-OF-WAY UNDER MINERAL LEAS- (A) not later than 90 days after the date of the applicant completes the requirements ING ACT.—Section 28(l) of the Mineral Leas- assignment, report to the Bureau of Land within the period specified in subparagraph ing Act (30 U.S.C. 185(l)) is amended by in- Management Field Managers in the office to (A), the Secretary shall issue a decision on serting before the period at the end the fol- which the employee is assigned; the permit not later than 10 days after the lowing: ‘‘using the valuation method de- (B) be responsible for all issues relating to date of completion of the requirements de- scribed in section 2803.1–2 of title 43, Code of the jurisdiction of the home office or agency scribed in subparagraph (A). Federal Regulations, as revised in accord- of the employee; and ‘‘(C) DENIAL OF PERMIT.—If the applicant ance with section 504(k) of the Federal Land (C) participate as part of the team of per- does not complete the requirements within Policy and Management Act of 1976 (43 sonnel working on proposed energy projects, the period specified in subparagraph (A), the U.S.C. 1764(k))’’. planning, and environmental analyses. Secretary shall deny the permit. SEC. 2030. ENERGY FACILITY RIGHTS-OF-WAY (d) FIELD OFFICES.—The following Bureau ‘‘(q) REPORT.—On a quarterly basis, each AND CORRIDORS ON FEDERAL of Land Management Field Offices shall field office of the Bureau of Land Manage- LAND. serve as the Pilot Project offices: ment and the Forest Service shall transmit (a) REPORT TO CONGRESS.—

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(1) IN GENERAL.—Not later than 1 year after and distribution facilities on Federal land in (i) a unified right-of-way application form; the date of enactment of this Act, the Sec- the States other than those described in and retary of Agriculture and the Secretary of paragraph (1); and (ii) an administrative procedure for proc- the Interior, in consultation with the Sec- (B) schedule prompt action to identify, essing right-of-way applications, including retary of Commerce, the Secretary of De- designate, and incorporate the corridors into lines of authority, steps in application proc- fense, the Secretary of Energy, and the Fed- the land use plan. essing, and timeframes for application proc- eral Energy Regulatory Commission, shall (3) ONGOING RESPONSIBILITIES.—The Sec- essing; submit to Congress a joint report— retary of Agriculture, the Secretary of Com- (B) provide for coordination of planning re- (A) that addresses— merce, the Secretary of Defense, the Sec- lating to the granting of the rights-of-way; (i) the location of existing rights-of-way retary of Energy, and the Secretary of the (C) provide for an agreement among the af- and designated and de facto corridors for oil, Interior, with respect to lands under their fected Federal agencies to prepare a single gas, and hydrogen pipelines and electric respective jurisdictions, in consultation with environmental review document to be used transmission and distribution facilities on the Federal Energy Regulatory Commission as the basis for all Federal authorization de- Federal land; and and the affected utility industries, shall es- cisions; and (ii) opportunities for additional oil, gas, tablish procedures that— (D) provide for coordination of use of right- and hydrogen pipeline and electric trans- (A) ensure that additional corridors for oil, of-way stipulations to achieve consistency. mission capacity within those rights-of-way gas, and hydrogen pipelines and electricity (b) NATURAL GAS PIPELINES.— and corridors; and transmission and distribution facilities on (1) IN GENERAL.—With respect to permit- (B) that includes a plan for making avail- Federal land are promptly identified and des- ting activities for interstate natural gas able, on request, to the appropriate Federal, ignated; and pipelines, the May 2002 document entitled State, and local agencies, tribal govern- (B) expedite applications to construct or ‘‘Interagency Agreement On Early Coordina- ments, and other persons involved in the modify oil, gas, and hydrogen pipelines and tion Of Required Environmental And His- siting of oil, gas, and hydrogen pipelines and electricity transmission and distribution fa- toric Preservation Reviews Conducted In electricity transmission facilities Geo- cilities within the corridors, taking into ac- Conjunction With The Issuance Of Author- graphic Information System-based informa- count prior analyses and environmental re- izations To Construct And Operate Inter- tion regarding the location of the existing views undertaken during the designation of state Natural Gas Pipelines Certificated By rights-of-way and corridors and any planned corridors. The Federal Energy Regulatory Commis- rights-of-way and corridors. (c) CONSIDERATIONS.—In carrying out this sion’’ shall constitute compliance with sub- (2) CONSULTATIONS AND CONSIDERATIONS.— section, the Secretaries shall take into ac- section (a). In preparing the report, the Secretary of the count the need for upgraded and new elec- (2) REPORT.— Interior and the Secretary of Agriculture tricity transmission and distribution facili- (A) IN GENERAL.—Not later than 1 year shall consult with— ties to— after the date of enactment of this Act, and (A) other agencies of Federal, State, tribal, (1) improve reliability; every 2 years thereafter, agencies that are or local units of government, as appropriate; (2) relieve congestion; and signatories to the document referred to in (B) persons involved in the siting of oil, (3) enhance the capability of the national paragraph (1) shall transmit to Congress a gas, and hydrogen pipelines and electric grid to deliver electricity. report on how the agencies under the juris- transmission facilities; and (d) DEFINITION OF CORRIDOR.— (C) other interested members of the public. diction of the Secretaries are incorporating (1) IN GENERAL.—In this section and title V and implementing the provisions of the docu- (3) LIMITATION.—The Secretary of the Inte- rior and the Secretary of Agriculture shall of the Federal Land Policy and Management ment referred to in paragraph (1). limit the distribution of the report and Geo- Act of 1976 (43 U.S.C. 1761 et seq.), the term (B) CONTENTS.—The report shall address— graphic Information System-based informa- ‘‘corridor’’ means— (i) efforts to implement the provisions of tion referred to in paragraph (1) as necessary (A) a linear strip of land— the document referred to in paragraph (1); for national and infrastructure security rea- (i) with a width determined with consider- (ii) whether the efforts have had a stream- sons, if either Secretary determines that the ation given to technological, environmental, lining effect; information may be withheld from public and topographical factors; and (iii) further improvements to the permit- disclosure under a national security or other (ii) that contains, or may in the future ting process of the agency; and exception under section 552(b) of title 5, contain, 1 or more utility, communication, (iv) recommendations for inclusion of United States Code. or transportation facilities; State and tribal governments in a coordi- (b) CORRIDOR DESIGNATIONS.— (B) a land use designation that is estab- nated permitting process. (1) 11 CONTIGUOUS WESTERN STATES.—Not lished— (c) DEFINITION OF UTILITY FACILITY.—In later than 2 years after the date of enact- (i) by law; this section, the term ‘‘utility facility’’ ment of this Act, the Secretary of Agri- (ii) by Secretarial Order; means any privately, publicly, or coopera- culture, the Secretary of Commerce, the Sec- (iii) through the land use planning process; tively owned line, facility, or system— retary of Defense, the Secretary of Energy, or (1) for the transportation of— and the Secretary of the Interior, in con- (iv) by other management decision; and (A) oil, natural gas, synthetic liquid fuel, sultation with the Federal Energy Regu- (C) a designation made for the purpose of or gaseous fuel; latory Commission and the affected utility establishing the preferred location of com- (B) any refined product produced from oil, industries, shall jointly— patible linear facilities and land uses. natural gas, synthetic liquid fuel, or gaseous (A) designate, under title V of the Federal (2) SPECIFICATIONS OF CORRIDOR.—On des- fuel; or Land Policy and Management Act of 1976 (43 ignation of a corridor under this section, the (C) products in support of the production of U.S.C. 1761 et seq.) and other applicable Fed- centerline, width, and compatible uses of a material referred to in subparagraph (A) or eral laws, corridors for oil, gas, and hydrogen corridor shall be specified. (B); pipelines and electricity transmission and SEC. 2031. CONSULTATION REGARDING ENERGY (2) for storage and terminal facilities in facilities on Federal land in the eleven con- RIGHTS-OF-WAY ON PUBLIC LAND. connection with the production of material tiguous Western States (as defined in section (a) MEMORANDUM OF UNDERSTANDING.— referred to in paragraph (1); or 103 of the Federal Land Policy and Manage- (1) IN GENERAL.—Not later than 6 months (3) for the generation, transmission, and ment Act of 1976 (43 U.S.C. 1702)); after the date of enactment of this Act, the distribution of electric energy. (B) perform any environmental reviews Secretary of Energy, in consultation with SEC. 2032. ELECTRICITY TRANSMISSION LINE that may be required to complete the des- the Secretary of the Interior, the Secretary RIGHT-OF-WAY, CLEVELAND NA- ignations of corridors for the facilities on of Agriculture, and the Secretary of Defense TIONAL FOREST AND ADJACENT Federal land in the eleven contiguous West- with respect to lands under their respective PUBLIC LAND, CALIFORNIA. ern States; and jurisdictions, shall enter into a memo- (a) ISSUANCE.— (C) incorporate the designated corridors randum of understanding to coordinate all (1) IN GENERAL.—Not later than 60 days into— applicable Federal authorizations and envi- after the completion of the environmental (i) the relevant departmental and agency ronmental reviews relating to a proposed or reviews under subsection (c), the Secretary land use and resource management plans; or existing utility facility. To the maximum of the Interior and the Secretary of Agri- (ii) equivalent plans. extent practicable under applicable law, the culture shall issue all necessary grants, ease- (2) OTHER STATES.—Not later than 4 years Secretary of Energy shall, to ensure timely ments, permits, plan amendments, and other after the date of enactment of this Act, the review and permit decisions, coordinate such approvals to allow for the siting and con- Secretary of Agriculture, the Secretary of authorizations and reviews with any Indian struction of a high-voltage electricity trans- Commerce, the Secretary of Defense, the tribes, multi-State entities, and State agen- mission line right-of-way running approxi- Secretary of Energy, and the Secretary of cies that are responsible for conducting any mately north to south through the Trabuco the Interior, in consultation with the Fed- separate permitting and environmental re- Ranger District of the Cleveland National eral Energy Regulatory Commission and the views of the affected utility facility. Forest in the State of California and adja- affected utility industries, shall jointly— (2) CONTENTS.—The memorandum of under- cent lands under the jurisdiction of the Bu- (A) identify corridors for oil, gas, and hy- standing shall include provisions that— reau of Land Management and the Forest drogen pipelines and electricity transmission (A) establish— Service.

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(2) INCLUSIONS.—The right-of-way approv- lands constituting the Padre Island National SEC. 2042. LAND CONVEYANCE, PORTION OF als under paragraph (1) shall provide all nec- Seashore by the owners and their mineral NAVAL PETROLEUM RESERVE NUM- essary Federal authorization from the Sec- lessees; and BERED 2, TO CITY OF TAFT, CALI- retary of the Interior and the Secretary of (B) recognized that approval of the State of FORNIA. (a) CONVEYANCE.—Effective on the date of Agriculture for the routing, construction, Texas was required to create Padre Island the enactment of this Act, there is conveyed operation, and maintenance of a 500-kilovolt National Seashore. to the City of Taft, California (in this sec- transmission line capable of meeting the (4) Approval was given for the creation of tion referred to as the ‘‘City’’), all surface long-term electricity transmission needs of Padre Island National Seashore by the State right, title, and interest of the United States the region between the existing Valley- of Texas through Tex. Rev. Civ. Stat. Ann. in and to a parcel of real property consisting Serrano transmission line to the north and Art. 6077(t) (Vernon 1970), which expressly of approximately 167 acres located in the N1⁄2 the Telega-Escondido transmission line to recognized that development of the oil, gas, of section 18, township 32 south, range 24 the south, and for connecting to future gen- and other minerals in the subsurface of the east, Mount Diablo meridian, more fully de- erating capacity that may be developed in lands constituting Padre Island National scribed as Parcels 1 and 2 according to the the region. Seashore would be conducted with full rights Record of Survey filed on July 1, 1974, in (b) PROTECTION OF WILDERNESS AREAS.— of ingress and egress under the laws of the Book 11 of Record Surveys at page 68, County The Secretary of the Interior and the Sec- State of Texas. of Kern, State of California. retary of Agriculture shall not allow any (b) SENSE OF CONGRESS.—It is the sense of portion of a transmission line right-of-way (b) CONSIDERATION.—The conveyance under Congress that with regard to Federal law, subsection (a) is made without the payment corridor identified in subsection (a) to enter any regulation of the development of oil, any identified wilderness area in existence as of consideration by the City. gas, or other minerals in the subsurface of (c) TREATMENT OF EXISTING RIGHTS.—The of the date of enactment of this Act. the lands constituting Padre Island National conveyance under subsection (a) is subject to (c) ENVIRONMENTAL AND ADMINISTRATIVE Seashore should be made as if those lands re- valid existing rights, including Federal oil REVIEWS.— tained the status that the lands had on Sep- and gas lease SAC—019577. (1) DEPARTMENT OF INTERIOR OR LOCAL tember 27, 1962. (d) TREATMENT OF MINERALS.—All coal, oil, AGENCY.—The Secretary of the Interior, act- gas, and other minerals within the lands con- ing through the Director of the Bureau of SEC. 2034. LIVINGSTON PARISH MINERAL RIGHTS veyed under subsection (a) are reserved to Land Management, shall be the lead Federal TRANSFER. the United States, except that the United agency with overall responsibility to ensure (a) AMENDMENTS.—Section 102 of Public States and its lessees, licensees, permittees, completion of required environmental and Law 102–562 (106 Stat. 4234) is amended— or assignees shall have no right of surface other reviews of the approvals to be issued (1) by striking ‘‘(a) IN GENERAL.—’’; use or occupancy of the lands. Nothing in under subsection (a). (2) by striking ‘‘and subject to the reserva- this subsection shall be construed to require (2) NATIONAL FOREST SYSTEM LAND.—For tion in subsection (b),’’; and the United States or its lessees, licensees, the portions of the corridor on National For- (3) by striking subsection (b). permittees, or assignees to support the sur- est System lands, the Secretary of Agri- (b) IMPLEMENTATION OF AMENDMENT.—The face of the conveyed lands. culture shall complete all required environ- Secretary of the Interior shall execute the (e) INDEMNIFY AND HOLD HARMLESS.—The mental reviews and administrative actions legal instruments necessary to effectuate the City shall indemnify, defend, and hold harm- in coordination with the Secretary of the In- amendment made by subsection (a)(3). less the United States for, from, and against, terior. Subtitle C—Naval Petroleum Reserves and the City shall assume all responsibility (3) EXPEDITIOUS COMPLETION.—The reviews for, any and all liability of any kind or na- required for issuance of the approvals under SEC. 2041. TRANSFER OF ADMINISTRATIVE JU- ture, including all loss, cost, expense, or subsection (a) shall be completed not later RISDICTION AND ENVIRONMENTAL damage, arising from the City’s use or occu- than 1 year after the date of enactment of REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, KERN COUN- pancy of, or operations on, the land conveyed this Act. under subsection (a), whether such use or oc- (d) OTHER TERMS AND CONDITIONS.—The TY, CALIFORNIA. cupancy of, or operations on, occurred before transmission line right-of-way shall be sub- (a) ADMINISTRATION JURISDICTION TRANSFER or occur after the date of the enactment of ject to such terms and conditions as the Sec- TO SECRETARY OF THE INTERIOR.—Effective on this Act. retary of the Interior and the Secretary of the date of the enactment of this Act, ad- (f) INSTRUMENT OF CONVEYANCE.—Not later ministrative jurisdiction and control over all Agriculture consider necessary, based on the than one year after the date of the enact- public domain lands included within Naval environmental reviews under subsection (c), ment of this Act, the Secretary of Energy Petroleum Reserve Numbered 2 located in to protect the value of historic, cultural, and shall execute, file, and cause to be recorded Kern County, California, (other than the natural resources under the jurisdiction of in the appropriate office a deed or other ap- lands specified in subsection (b)) are trans- the Secretary of the Interior or the Sec- propriate instrument documenting the con- ferred from the Secretary of Energy to the retary of Agriculture. veyance made by this section. (e) PREFERENCE AMONG PROPOSALS.—The Secretary of the Interior for management, Secretary of the Interior and the Secretary subject to subsection (c), in accordance with SEC. 2043. REVOCATION OF LAND WITHDRAWAL. Effective on the date of the enactment of of Agriculture shall give a preference to any the general land laws. this Act, the Executive Order of December application or preapplication proposal for a (b) EXCLUSION OF CERTAIN RESERVE transmission line right-of-way referred to in 13, 1912, which created Naval Petroleum Re- LANDS.—The transfer of administrative ju- serve Numbered 2, is revoked in its entirety. subsection (a) that was submitted before De- risdiction made by subsection (a) does not SEC. 2044. EFFECT OF TRANSFER AND CONVEY- cember 31, 2002, over all other applications include the following lands: and proposals for the same or a similar ANCE. (1) That portion of Naval Petroleum Re- Nothing in this Act shall be construed—— right-of-way submitted on or after that date. serve Numbered 2 authorized for disposal (1) to impose on the Secretary of Energy SEC. 2033. SENSE OF CONGRESS REGARDING DE- under section 3403(a) of the Strom Thurmond VELOPMENT OF MINERALS UNDER any new liability or responsibility that the National Defense Authorization Act for Fis- Secretary of Energy did not bear before the PADRE ISLAND NATIONAL SEA- cal Year 1999 (Public Law 105–261; 10 U.S.C. SHORE. date of the enactment of this Act; or 7420 note). (a) FINDINGS.—Congress finds the fol- (2) to increase the level of responsibility of lowing: (2) That portion of the surface estate of the Secretary of Energy with respect to any (1) Pursuant to Public Law 87–712 (16 U.S.C. Naval Petroleum Reserve Numbered 2 con- responsibility borne by the Secretary of En- 459d et seq.; popularly known as the ‘‘Federal veyed to the City of Taft, California, by sec- ergy before that date. tion 2042 of this Act. Enabling Act’’) and various deeds and ac- Subtitle D—Miscellaneous Provisions (c) PURPOSE OF TRANSFER.—Notwith- tions under that Act, the United States is SEC. 2051. SPLIT-ESTATE FEDERAL OIL AND GAS the owner of only the surface estate of cer- standing any other provision of law, the LEASING AND DEVELOPMENT PRAC- tain lands constituting the Padre Island Na- principle purpose of the lands subject to TICES. tional Seashore. transfer under subsection (a) is the produc- (a) REVIEW.—In consultation with affected (2) Ownership of the oil, gas, and other tion of hydrocarbon resources, and the Sec- private surface owners, oil and gas industry, minerals in the subsurface estate of the retary of the Interior shall manage the lands and other interested parties, the Secretary lands constituting the Padre Island National in a fashion consistent with this purpose. In of the Interior shall undertake a review of Seashore was never acquired by the United managing the lands, the Secretary of the In- the current policies and practices with re- States, and ownership of those interests is terior shall regulate operations only to pre- spect to management of Federal subsurface held by the State of Texas and private par- vent unnecessary degradation and to provide oil and gas development activities and their ties. for ultimate economic recovery of the re- effects on the privately owned surface. This (3) Public Law 87–712 (16 U.S.C. 459d et sources. review shall include— seq.)— (d) CONFORMING AMENDMENT.—Section 3403 (1) a comparison of the rights and respon- (A) expressly contemplated that the United of the Strom Thurmond National Defense sibilities under existing mineral and land States would recognize the ownership and fu- Authorization Act for Fiscal Year 1999 (Pub- law for the owner of a Federal mineral lease, ture development of the oil, gas, and other lic Law 105–261; 10 U.S.C 7420 note) is amend- the private surface owners and the Depart- minerals in the subsurface estate of the ed by striking subsection (b). ment;

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00160 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.068 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2313 (2) a comparison of the surface owner con- ‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REIN- ‘‘(B) Notwithstanding section 9, all quali- sent provisions in section 714 of the Surface VESTMENT PROGRAM. fied outer Continental shelf revenues attrib- Mining Control and Reclamation Act of 1977 ‘‘(a) DEFINITIONS.—In this section: utable to bonus bids received by the United (30 U.S.C. 1304) concerning surface mining of ‘‘(1) COASTAL ENERGY STATE.—The term States in each of the fiscal years 2006 Federal coal deposits and the surface owner ‘Coastal Energy State’ means a Coastal through 2015 that are in excess of $880,000,000. consent provisions for oil and gas develop- State off the coastline of which, within the ‘‘(C) Notwithstanding section 9, in addition ment, including coalbed methane produc- seaward lateral boundary as determined to amounts deposited under subparagraphs tion; and under section 4, outer Continental Shelf (A) and (B), $35,000,000 of amounts received (3) recommendations for administrative or bonus bids or royalties are generated. by the United States each fiscal year as roy- legislative action necessary to facilitate rea- ‘‘(2) COASTAL POLITICAL SUBDIVISION.—The alties for oil or gas production on the outer sonable access for Federal oil and gas activi- term ‘coastal political subdivision’ means a Continental Shelf. ties while addressing surface owner concerns county, parish, or other equivalent subdivi- ‘‘(D) All interest earned under paragraph and minimizing impacts to private surface. sion of a Coastal Energy State, all or part of (4). (b) REPORT.—The Secretary of the Interior which lies within the boundaries of the In no event shall deposits under subpara- shall report the results of such review to coastal zone of the State, as identified in the graphs (A) through (C) total more than Congress not later than 180 days after the State’s approved coastal zone management $50,000,000 per fiscal year. date of enactment of this Act. program under the Coastal Zone Manage- ‘‘(3) DEPOSITS AFTER FISCAL YEAR 2015.—For SEC. 2052. ROYALTY PAYMENTS UNDER LEASES ment Act of 1972 (16 U.S.C. 1451 et seq.) on each fiscal year after fiscal year 2015, the UNDER THE OUTER CONTINENTAL the date of the enactment of this section. Secretary of the Treasury shall deposit into SHELF LANDS ACT. ‘‘(3) COASTAL POPULATION.—The term the Fund the following: OYALTY ELIEF ‘coastal population’ means the population of (a) R R .— ‘‘(A) 25 percent of qualified outer Conti- (1) IN GENERAL.—For purposes of providing a coastal political subdivision, as determined nental Shelf revenues received by the United compensation for lessees and a State for by the most recent official data of the Cen- States in the preceding fiscal year. which amounts are authorized by section sus Bureau. ‘‘(B) All interest earned under paragraph 6004(c) of the Oil Pollution Act of 1990 (Pub- ‘‘(4) COASTLINE.—The term ‘coastline’ has (4). lic Law 101–380), a lessee may withhold from the same meaning as the term ‘coast line’ in ‘‘(4) INVESTMENT.—The Secretary of the payment any royalty due and owing to the subsection 2(c) of the Submerged Lands Act Treasury shall invest moneys in the Fund United States under any leases under the (43 U.S.C. 1301(c)). (including interest) in public debt securities Outer Continental Shelf Lands Act (43 U.S.C. ‘‘(5) FUND.—The term ‘Fund’ means the Se- with maturities suitable to the needs of the 1301 et seq.) for offshore oil or gas production cure Energy Reinvestment Fund established Fund, as determined by the Secretary of the from a covered lease tract if, on or before the by this section. Treasury, and bearing interest at rates de- date that the payment is due and payable to ‘‘(6) LEASED TRACT.—The term ‘leased termined by the Secretary of the Treasury, the United States, the lessee makes a pay- tract’ means a tract maintained under sec- ment to the State of 44 cents for every $1 of tion 6 or leased under section 8 for the pur- taking into consideration current market royalty withheld. pose of drilling for, developing, and pro- yields on outstanding marketable obliga- tions of the United States of comparable ma- (2) TREATMENT OF AMOUNTS.—Any royalty ducing oil and natural gas resources. turity. Such invested moneys shall remain withheld by a lessee in accordance with this ‘‘(7) QUALIFIED OUTER CONTINENTAL SHELF section (including any portion thereof that is REVENUES.—The term ‘qualified outer Conti- invested until needed to meet requirements paid to the State under paragraph (1)) shall nental Shelf revenues’ means all amounts re- for disbursement under this section. be treated as paid for purposes of satisfac- ceived by the United States on or after Octo- ‘‘(c) USE OF SECURE ENERGY REINVESTMENT tion of the royalty obligations of the lessee ber 1, 2005, from each leased tract or portion FUND.— to the United States. of a leased tract lying seaward of the zone ‘‘(1) IN GENERAL.—(A) The Secretary shall (3) CERTIFICATION OF WITHHELD AMOUNTS.— defined and governed by section 8(g), or lying use amounts in the Fund remaining after the The Secretary of the Treasury shall— within such zone but to which section 8(g) application of subsection (d) to pay to each (A) determine the amount of royalty with- does not apply, including bonus bids, rents, Coastal Energy State, and to coastal polit- held by a lessee under this section; and royalties (including payments for royalties ical subdivisions of such State, the amount (B) promptly publish a certification when taken in kind and sold), net profit share pay- allocated to the State or coastal political the total amount of royalty withheld by the ments, and related interest. subdivision, respectively, under this sub- lessee under this section is equal to— ‘‘(8) SECRETARY.—The term ‘Secretary’ section. (i) the dollar amount stated at page 47 of means the Secretary of the Interior. ‘‘(B) The Secretary shall make payments Senate Report number 101–534, which is des- ‘‘(b) SECURE ENERGY REINVESTMENT under this paragraph in December of 2006, ignated therein as the total drainage claim FUND.— and of each year thereafter, from revenues for the West Delta field; plus ‘‘(1) ESTABLISHMENT.—There is established received by the United States in the pre- (ii) interest as described at page 47 of that in the Treasury of the United States a sepa- ceding fiscal year. Report. rate account which shall be known as the ‘‘(2) ALLOCATION.—The Secretary shall al- (b) PERIOD OF ROYALTY RELIEF.—Sub- ‘Secure Energy Reinvestment Fund’. The locate amounts deposited into the Fund in a section (a) shall apply to royalty amounts Fund shall consist of amounts deposited fiscal year, and other amounts determined that are due and payable in the period begin- under paragraph (2). by the Secretary to be available, among ning on January 1, 2006, and ending on the ‘‘(2) DEPOSITS.—For each of fiscal years Coastal Energy States, and to coastal polit- date on which the Secretary of the Treasury 2006 through 2015, the Secretary of the Treas- ical subdivisions of such States, as follows: publishes a certification under subsection ury shall deposit into the Fund, subject to ‘‘(A)(i) The allocation for each Coastal En- (a)(4)(B). appropriations, the following: ergy State shall be calculated based on the (c) DEFINITIONS.—As used in this section: ‘‘(A) Notwithstanding section 9, all quali- ratio of qualified outer Continental Shelf (1) COVERED LEASE TRACT.—The term ‘‘cov- fied outer Continental Shelf revenues attrib- revenues generated off the coastline of the ered lease tract’’ means a leased tract (or utable to royalties received by the United Coastal Energy State to the qualified outer portion of a leased tract)— States in the fiscal year that are in excess of Continental Shelf revenues generated off the (A) lying seaward of the zone defined and the following amount: coastlines of all Coastal Energy States for governed by section 8(g) of the Outer Conti- ‘‘(i) $7,000,000,000 in the case of royalties re- the preceding fiscal year. nental Shelf Lands Act (43 U.S.C. 1337(g)); or ceived in fiscal year 2006. ‘‘(ii) For purposes of this subparagraph, (B) lying within such zone but to which ‘‘(ii) $7,100,000,000 in the case of royalties qualified outer Continental Shelf revenues such section does not apply. received in fiscal year 2007. shall be considered to be generated off the (2) LESSEE.—The term ‘‘lessee’’— ‘‘(iii) $7,300,000,000 in the case of royalties coastline of a Coastal Energy State if the ge- (A) means a person or entity that, on the received in fiscal year 2008. ographic center of the lease tract from which date of the enactment of the Oil Pollution ‘‘(iv) $6,900,000,000 in the case of royalties the revenues are generated is located within Act of 1990, was a lessee referred to in sec- received in fiscal year 2009. the area formed by the extension of the tion 6004(c) of that Act (as in effect on that ‘‘(v) $7,200,000,000 in the case of royalties State’s seaward lateral boundaries. date of the enactment), but did not hold received in fiscal year 2010. ‘‘(B) 35 percent of each Coastal Energy lease rights in Federal offshore lease OCS–G– ‘‘(vi) $7,250,000,000 in the case of royalties State’s allocable share as determined under 5669; and received in fiscal year 2011. subparagraph (A) shall be allocated among (B) includes successors and affiliates of a ‘‘(vii) $8,125,000,000 in the case of royalties and paid directly to the coastal political sub- person or entity described in subparagraph received in fiscal year 2012. divisions of the State by the Secretary based (A). ‘‘(viii) $8,100,000,000 in the case of royalties on the following formula: SEC. 2053. DOMESTIC OFFSHORE ENERGY REIN- received in fiscal year 2013. ‘‘(i) 25 percent shall be allocated based on VESTMENT. ‘‘(ix) $9,000,000,000 in the case of royalties the ratio of each coastal political subdivi- The Outer Continental Shelf Lands Act (43 received in fiscal year 2014. sion’s coastal population to the coastal pop- U.S.C. 1331 et seq.) is amended by adding at ‘‘(x) $7,500,000,000 in the case of royalties ulation of all coastal political subdivisions the end the following: received in fiscal year 2015. of the Coastal Energy State.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00161 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.068 H20PT1 H2314 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(ii) 25 percent shall be allocated based on ministrative appeal, or other required re- SEC. 2104. PAYMENT OF ADVANCE ROYALTIES the ratio of each coastal political subdivi- quest for approval for the purposes of this UNDER COAL LEASES. sion’s coastline miles to the coastline miles section. (a) IN GENERAL.—Section 7(b) of the Min- of all coastal political subdivisions of the (b) DETERMINATION OF A COMMERCIAL DIS- eral Leasing Act (30 U.S.C. 207(b)) is amended State. In the case of a coastal political sub- COVERY.—The Secretary shall make any re- to read as follows: division without a coastline, the coastline of quired determination of the existence of a ‘‘(b)(1) Each lease shall be subjected to the the political subdivision for purposes of this commercial resource discovery. For oil and condition of diligent development and con- clause shall be one-third the average length gas, a commercial discovery is a discovery in tinued operation of the mine or mines, ex- of the coastline of the other coastal political paying quantities. The Secretary shall be cept where operations under the lease are in- subdivisions of the State. guided in such a determination by precedent, terrupted by strikes, the elements, or casual- ‘‘(iii) 50 percent shall be allocated based on and by written advice, including input from ties not attributable to the lessee. ‘‘(2)(A) The Secretary of the Interior, upon a formula that allocates 75 percent of the the lessee. determining that the public interest will be funds based on such coastal political subdivi- (c) COMPENSATION.—Upon authorization by served thereby, may suspend the condition of sion’s relative distance from any leased tract the Secretary of the repurchase of a lease continued operation upon the payment of ad- used to calculate that State’s allocation and under this section, a lessee shall be com- vance royalties. 25 percent of the funds based on the relative pensated in the amount of the total of lease ‘‘(B) Such advance royalties shall be com- level of outer Continental Shelf oil and gas acquisition costs, rentals, seismic acquisi- puted— activities in a coastal political subdivision tion costs, archeological and environmental ‘‘(i) based on— to the level of outer Continental Shelf oil studies, drilling costs, and other reasonable ‘‘(I) the average price in the spot market and gas activities in all coastal political sub- expenses on the lease, including expenses in- for sales of comparable coal from the same divisions in such State, as determined by the curred in the repurchase process, to the ex- region during the last month of each applica- Secretary. tent that the lessee has not previously been ble continued operation year; or ‘‘(d) ADMINISTRATIVE EXPENSES.—Of compensated by the United States for such ‘‘(II) in the absence of a spot market for amounts in the Fund each fiscal year, the expenses. The lessee shall not be com- Secretary may use up to one-half of one per- comparable coal from the same region, by pensated for general overhead expenses, em- using a comparable method established by cent for the administrative costs of imple- ployee salaries, or interest. If the lessee is an menting this section. the Secretary of the Interior to capture the assignee, the lessee may not claim the ex- commercial value of coal; and ‘‘(e) DISPOSITION OF FUNDS.—A Coastal En- penses of his assignor. Compensation shall be ergy State or coastal political subdivision ‘‘(ii) based on commercial quantities, as in the form of a check or electronic transfer defined by regulation by the Secretary of the may use funds provided to such entity under from the Department of the Treasury from this section for any payment that is eligible Interior. funds deposited into miscellaneous receipts ‘‘(C) The aggregate number of years during to be made with funds provided to States under the authority of the same Act that au- under section 35 of the Mineral Leasing Act the initial and any extended term of any thorized the issuance of the lease being re- lease for which advance royalties may be ac- (30 U.S.C. 191).’’. purchased. If the Secretary fails to make the SEC. 2054. REPURCHASE OF LEASES THAT ARE cepted in lieu of the condition of continued repurchase authorization decision under sub- operation shall not exceed 20. NOT ALLOWED TO BE EXPLORED OR section (a) within the required 180 days and DEVELOPED. ‘‘(3) The amount of any production royalty the lease is ultimately repurchased, the com- (a) AUTHORITY TO REPURCHASE AND CANCEL paid for any year shall be reduced (but not pensation due to the lessee shall increase by CERTAIN LEASES.—Notwithstanding any below zero) by the amount of any advance other provisions of law, any Federal oil and 25 percent, plus 1 percent for every seven royalties paid under such lease to the extent gas, geothermal, coal, oil shale, or tar sands days that the decision is delayed beyond the that such advance royalties have not been lease, whether onshore or offshore, issued by required 180 days. used to reduce production royalties for a the Secretary, or units of such leases if unit- (d) DELEGATION OF AUTHORITY AND FINAL- prior year. ized, that by operation of law, including but ITY OF DECISIONS.—The Secretary may dele- ‘‘(4) This subsection shall be applicable to not limited to denial of a permit request, (1) gate authority granted by this section only any lease or logical mining unit in existence is not allowed to be explored in the lawful to individuals who have been appointed by on the date of the enactment of this para- manner requested by the lessee, or (2) if ex- the President, by and with the advice and graph or issued or approved after such date. plored resulting in a commercial discovery is consent of the Senate. A decision under this ‘‘(5) Nothing in this subsection shall be not allowed to be developed or produced in section by the Secretary, or delegated offi- construed to affect the requirement con- the lawful manner requested by the lessee, cial, shall be considered the final agency de- tained in the second sentence of subsection shall, upon the written request of the lessee cision. (a) relating to commencement of production and a finding by the Secretary that such (e) REGULATIONS.—The Secretary shall at the end of 10 years.’’. lease qualifies, be authorized for repurchase issue reasonable regulations implementing (b) AUTHORITY TO WAIVE, SUSPEND, OR RE- and cancelled by the Secretary. If a permit, this section not later than 1 year after date DUCE ADVANCE ROYALTIES.—Section 39 of the approval, or appeal has been expressly denied of enactment of this Act. Mineral Leasing Act (30 U.S.C. 209) is amend- and the proposal of the lessee is found by the (f) SECRETARY.—For purposes of this sec- ed by striking the last sentence. Secretary not to have been in compliance tion, the term ‘‘Secretary’’ means the Sec- SEC. 2105. ELIMINATION OF DEADLINE FOR SUB- with law, the lessee shall not be entitled to retary of the Interior. MISSION OF COAL LEASE OPER- ATION AND RECLAMATION PLAN. have the lease repurchased and cancelled. (g) NO PREJUDICE.—This section shall not Section 7(c) of the Mineral Leasing Act (30 However, if the lessee alleges that the Gov- be interpreted to prejudice any other rights U.S.C. 207(c)) is amended by striking ‘‘and ernment has failed to act on a proposal of that the lessee would have in the absence of not later than three years after a lease is the lessee within the applicable period of this section. issued,’’. time, the Secretary shall make no inquiry or TITLE XXI—COAL determination as to whether the contents of SEC. 2106. AMENDMENT RELATING TO FINANCIAL SEC. 2101. SHORT TITLE. ASSURANCES WITH RESPECT TO the request complied with the law, and the BONUS BIDS. Secretary shall restrict the Secretary’s find- This title may be cited as the ‘‘Coal Leas- ing Amendments Act of 2005’’. Section 2(a) of the Mineral Leasing Act (30 ings to whether or not the Government U.S.C. 201(a)) is amended by adding at the SEC. 2102. LEASE MODIFICATIONS FOR CONTIG- failed to act within the applicable period of end the following: time. The Secretary shall make all decisions UOUS COAL LANDS OR COAL DEPOS- ITS. ‘‘(4)(A) The Secretary shall not require a under this section within 180 days of request. surety bond or any other financial assurance Section 3 of the Mineral Leasing Act (30 The area covered by any repurchased and to guarantee payment of deferred bonus bid U.S.C. 203) is amended in the first sentence cancelled lease shall remain available for fu- installments with respect to any coal lease by striking ‘‘such lease,’’ and all that follows ture leasing unless otherwise prohibited by issued on a cash bonus bid to a lessee or suc- through the end of the sentence and insert- law. For purposes of this section, failure to cessor in interest having a history of a time- ing ‘‘such lease.’’. act within a regulatory or statutory time- ly payment of noncontested coal royalties frame, whether advisory or mandatory, or if SEC. 2103. APPROVAL OF LOGICAL MINING UNITS. and advanced coal royalties in lieu of pro- none, within a reasonable period of time not Section 2(d)(2) of the Mineral Leasing Act duction (where applicable) and bonus bid in- to exceed 180 days, on a permit request, ad- (30 U.S.C. 202a(2)) is amended— stallment payments. ministrative appeal, or other request for ap- (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and ‘‘(B) The Secretary may waive any require- proval, shall be considered to meet the oper- (2) by adding at the end the following: ment that a lessee provide a surety bond or ation of law requirements of this section. ‘‘(B) The Secretary may establish a period other financial assurance for a coal lease Further, conditions of approval attached to of more than 40 years if the Secretary deter- issued before the date of the enactment of permit approvals shall meet the operation of mines that the longer period— the Energy Policy Act of 2005 only if the Sec- law requirement of this section if such condi- ‘‘(i) will ensure the maximum economic re- retary determines that the lessee has a his- tions are not mandated by statute or regula- covery of a coal deposit; or tory of making timely payments referred to tion and not agreed to by the lessee. A lessee ‘‘(ii) the longer period is in the interest of in subparagraph (A). shall not be required to exhaust administra- the orderly, efficient, or economic develop- ‘‘(5) Notwithstanding any other provision tive remedies regarding a permit request, ad- ment of a coal resource.’’. of law, if the lessee under a coal lease fails to

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00162 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.068 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2315 pay any installment of a deferred cash bonus est Lands Conservation Act (16 U.S.C. leasing alternative courses of action or to bid within 10 days after the Secretary pro- 3142(b)(1)), comprising approximately analyze the environmental effects of such vides written notice that payment of the in- 1,549,000 acres, and as described in appendix I courses of action. The Secretary shall only stallment is past due— to part 37 of title 50, Code of Federal Regula- identify a preferred action for such leasing ‘‘(A) the lease shall automatically termi- tions. and a single leasing alternative, and analyze nate; and (2) SECRETARY.—The term ‘‘Secretary’’, ex- the environmental effects and potential ‘‘(B) any bonus payments already made to cept as otherwise provided, means the Sec- mitigation measures for those two alter- the United States with respect to the lease retary of the Interior or the Secretary’s des- natives. The identification of the preferred shall not be returned to the lessee or cred- ignee. action and related analysis for the first lease ited in any future lease sale.’’. SEC. 2203. LEASING PROGRAM FOR LANDS WITH- sale under this title shall be completed with- SEC. 2107. INVENTORY REQUIREMENT. IN THE COASTAL PLAIN. in 18 months after the date of enactment of (a) IN GENERAL.—The Secretary shall take (a) REVIEW OF ASSESSMENTS.— this Act. The Secretary shall only consider such actions as are necessary— (1) IN GENERAL.—The Secretary of the Inte- public comments that specifically address (1) to establish and implement, in accord- rior, in consultation with the Secretary of the Secretary’s preferred action and that are ance with this Act and acting through the Agriculture and the Secretary of Energy, filed within 20 days after publication of an Director of the Bureau of Land Management shall review coal assessments and other environmental analysis. Notwithstanding in consultation with the Director of the available data to identify— any other law, compliance with this para- United States Fish and Wildlife Service, a (A) public lands with coal resources; graph is deemed to satisfy all requirements competitive oil and gas leasing program (B) the extent and nature of any restric- for the analysis and consideration of the en- under the Mineral Leasing Act (30 U.S.C. 181 tions or impediments to the development of vironmental effects of proposed leasing et seq.) that will result in an environ- coal resources on public lands identified under this title. mentally sound program for the exploration, under paragraph (1); and (d) RELATIONSHIP TO STATE AND LOCAL AU- development, and production of the oil and THORITY.—Nothing in this title shall be con- (C) with respect to areas of such lands for gas resources of the Coastal Plain; and which sufficient data exists, resources of sidered to expand or limit State and local (2) to administer the provisions of this regulatory authority. compliant coal and supercompliant coal. title through regulations, lease terms, condi- (e) SPECIAL AREAS.— (2) DEFINITIONS.—For purposes of this sub- tions, restrictions, prohibitions, stipula- (1) IN GENERAL.—The Secretary, after con- section— tions, and other provisions that ensure the (A) the term ‘‘compliant coal’’ means coal sultation with the State of Alaska, the city oil and gas exploration, development, and of Kaktovik, and the North Slope Borough, that contains not less than 1.0 and not more production activities on the Coastal Plain than 1.2 pounds of sulfur dioxide per million may designate up to a total of 45,000 acres of will result in no significant adverse effect on the Coastal Plain as a Special Area if the Btu; and fish and wildlife, their habitat, subsistence Secretary determines that the Special Area (B) the term ‘‘supercompliant coal’’ means resources, and the environment, and includ- is of such unique character and interest so as coal that contains less than 1.0 pounds of sul- ing, in furtherance of this goal, by requiring to require special management and regu- fur dioxide per million Btu. the application of the best commercially latory protection. The Secretary shall des- (b) COMPLETION AND UPDATING OF THE IN- available technology for oil and gas explo- ignate as such a Special Area the VENTORY.—The Secretary— ration, development, and production to all Sadlerochit Spring area, comprising approxi- (1) shall complete the inventory under sub- exploration, development, and production mately 4,000 acres as depicted on the map re- section (a) by not later than 2 years after the operations under this title in a manner that ferred to in section 2202(1). date of enactment of this Act; and ensures the receipt of fair market value by (2) MANAGEMENT.—Each such Special Area (2) shall update the inventory as the avail- the public for the mineral resources to be shall be managed so as to protect and pre- ability of data and developments in tech- leased. serve the area’s unique and diverse character nology warrant. (b) REPEAL.— including its fish, wildlife, and subsistence (c) REPORT.—The Secretary shall submit to (1) REPEAL.—Section 1003 of the Alaska Na- the Committee on Resources of the House of tional Interest Lands Conservation Act (16 resource values. Representatives and to the Committee on U.S.C. 3143) is repealed. (3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY.—The Secretary may exclude any Energy and Natural Resources of the Senate (2) CLERICAL AMENDMENT.—The table of and make publicly available— contents in section 1 of such Act is amended Special Area from leasing. If the Secretary (1) a report containing the inventory under by striking the item relating to section 1003. leases a Special Area, or any part thereof, this section, by not later than 2 years after (c) COMPLIANCE WITH REQUIREMENTS UNDER for purposes of oil and gas exploration, devel- the effective date of this section; and CERTAIN OTHER LAWS.— opment, production, and related activities, (2) each update of such inventory. (1) COMPATIBILITY.—For purposes of the there shall be no surface occupancy of the SEC. 2108. APPLICATION OF AMENDMENTS. National Wildlife Refuge System Adminis- lands comprising the Special Area. The amendments made by this title apply tration Act of 1966, the oil and gas leasing (4) DIRECTIONAL DRILLING.—Notwith- with respect to any coal lease issued before, program and activities authorized by this standing the other provisions of this sub- on, or after the date of the enactment of this section in the Coastal Plain are deemed to be section, the Secretary may lease all or a por- Act. compatible with the purposes for which the tion of a Special Area under terms that per- Arctic National Wildlife Refuge was estab- mit the use of horizontal drilling technology SEC. 2109. RESOLUTION OF FEDERAL RESOURCE from sites on leases located outside the area. DEVELOPMENT CONFLICTS IN THE lished, and that no further findings or deci- POWDER RIVER BASIN. sions are required to implement this deter- (f) LIMITATION ON CLOSED AREAS.—The Sec- The Secretary of the Interior shall— mination. retary’s sole authority to close lands within (1) undertake a review of existing authori- (2) ADEQUACY OF THE DEPARTMENT OF THE the Coastal Plain to oil and gas leasing and ties to resolve conflicts between the develop- INTERIOR’S LEGISLATIVE ENVIRONMENTAL IM- to exploration, development, and production ment of Federal coal and the development of PACT STATEMENT.—The ‘‘Final Legislative is that set forth in this title. Federal and non-Federal coalbed methane in Environmental Impact Statement’’ (April (g) REGULATIONS.— the Powder River Basin in Wyoming and 1987) on the Coastal Plain prepared pursuant (1) IN GENERAL.—The Secretary shall pre- Montana; and to section 1002 of the Alaska National Inter- scribe such regulations as may be necessary (2) not later than 6 months after the date est Lands Conservation Act (16 U.S.C. 3142) to carry out this title, including rules and of enactment of this Act, report to Congress and section 102(2)(C) of the National Environ- regulations relating to protection of the fish on alternatives to resolve these conflicts and mental Policy Act of 1969 (42 U.S.C. and wildlife, their habitat, subsistence re- an identification of a preferred alternative 4332(2)(C)) is deemed to satisfy the require- sources, and environment of the Coastal with specific legislative language, if any, re- ments under the National Environmental Plain, by no later than 15 months after the quired to implement the preferred alter- Policy Act of 1969 that apply with respect to date of enactment of this Act. native. prelease activities, including actions author- (2) REVISION OF REGULATIONS.—The Sec- ized to be taken by the Secretary to develop retary shall periodically review and, if ap- TITLE XXII—ARCTIC COASTAL PLAIN propriate, revise the rules and regulations DOMESTIC ENERGY and promulgate the regulations for the es- tablishment of a leasing program authorized issued under subsection (a) to reflect any sig- SEC. 2201. SHORT TITLE. by this title before the conduct of the first nificant biological, environmental, or engi- This title may be cited as the ‘‘Arctic lease sale. neering data that come to the Secretary’s Coastal Plain Domestic Energy Security Act (3) COMPLIANCE WITH NEPA FOR OTHER AC- attention. of 2005’’. TIONS.—Before conducting the first lease sale SEC. 2204. LEASE SALES. SEC. 2202. DEFINITIONS. under this title, the Secretary shall prepare (a) IN GENERAL.—Lands may be leased pur- In this title: an environmental impact statement under suant to this title to any person qualified to (1) COASTAL PLAIN.—The term ‘‘Coastal the National Environmental Policy Act of obtain a lease for deposits of oil and gas Plain’’ means that area identified as such in 1969 with respect to the actions authorized under the Mineral Leasing Act (30 U.S.C. 181 the map entitled ‘‘Arctic National Wildlife by this title that are not referred to in para- et seq.). Refuge’’, dated August 1980, as referenced in graph (2). Notwithstanding any other law, (b) PROCEDURES.—The Secretary shall, by section 1002(b) of the Alaska National Inter- the Secretary is not required to identify non- regulation, establish procedures for—

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(1) receipt and consideration of sealed (7) provide that the lessee, its agents, and MENTS.—The proposed regulations, lease nominations for any area in the Coastal its contractors use best efforts to provide a terms, conditions, restrictions, prohibitions, Plain for inclusion in, or exclusion (as pro- fair share, as determined by the level of obli- and stipulations for the leasing program vided in subsection (c)) from, a lease sale; gation previously agreed to in the 1974 agree- under this title shall require compliance (2) the holding of lease sales after such ment implementing section 29 of the Federal with all applicable provisions of Federal and nomination process; and Agreement and Grant of Right of Way for State environmental law and shall also re- (3) public notice of and comment on des- the Operation of the Trans-Alaska Pipeline, quire the following: ignation of areas to be included in, or ex- of employment and contracting for Alaska (1) Standards at least as effective as the cluded from, a lease sale. Natives and Alaska Native Corporations safety and environmental mitigation meas- (c) LEASE SALE BIDS.—Bidding for leases from throughout the State; ures set forth in items 1 through 29 at pages under this title shall be by sealed competi- (8) prohibit the export of oil produced 167 through 169 of the ‘‘Final Legislative En- tive cash bonus bids. under the lease; and vironmental Impact Statement’’ (April 1987) (d) ACREAGE MINIMUM IN FIRST SALE.—In (9) contain such other provisions as the on the Coastal Plain. the first lease sale under this title, the Sec- Secretary determines necessary to ensure (2) Seasonal limitations on exploration, de- retary shall offer for lease those tracts the compliance with the provisions of this title velopment, and related activities, where nec- Secretary considers to have the greatest po- and the regulations issued under this title. essary, to avoid significant adverse effects tential for the discovery of hydrocarbons, (b) PROJECT LABOR AGREEMENTS.—The Sec- during periods of concentrated fish and wild- taking into consideration nominations re- retary, as a term and condition of each lease life breeding, denning, nesting, spawning, ceived pursuant to subsection (b)(1), but in under this title and in recognizing the Gov- and migration. no case less than 200,000 acres. ernment’s proprietary interest in labor sta- (3) That exploration activities, except for (e) TIMING OF LEASE SALES.—The Secretary bility and in the ability of construction surface geological studies, be limited to the shall— labor and management to meet the par- period between approximately November 1 (1) conduct the first lease sale under this ticular needs and conditions of projects to be and May 1 each year and that exploration ac- title within 22 months after the date of the developed under the leases issued pursuant tivities shall be supported, if necessary, by enactment of this Act; and to this title and the special concerns of the ice roads, winter trails with adequate snow (2) conduct additional sales so long as suf- parties to such leases, shall require that the cover, ice pads, ice airstrips, and air trans- ficient interest in development exists to war- lessee and its agents and contractors nego- port methods, except that such exploration rant, in the Secretary’s judgment, the con- tiate to obtain a project labor agreement for activities may occur at other times, if the duct of such sales. the employment of laborers and mechanics Secretary finds that such exploration will on production, maintenance, and construc- have no significant adverse effect on the fish SEC. 2205. GRANT OF LEASES BY THE SEC- and wildlife, their habitat, and the environ- RETARY. tion under the lease. ment of the Coastal Plain. (a) IN GENERAL.—The Secretary may grant SEC. 2207. COASTAL PLAIN ENVIRONMENTAL (4) Design safety and construction stand- to the highest responsible qualified bidder in PROTECTION. ards for all pipelines and any access and a lease sale conducted pursuant to section (a) NO SIGNIFICANT ADVERSE EFFECT service roads, that— 2204 any lands to be leased on the Coastal STANDARD TO GOVERN AUTHORIZED COASTAL (A) minimize, to the maximum extent pos- Plain upon payment by the lessee of such PLAIN ACTIVITIES.—The Secretary shall, con- sible, adverse effects upon the passage of mi- bonus as may be accepted by the Secretary. sistent with the requirements of section 2203, administer the provisions of this title gratory species such as caribou; and (b) SUBSEQUENT TRANSFERS.—No lease (B) minimize adverse effects upon the flow issued under this title may be sold, ex- through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and of surface water by requiring the use of cul- changed, assigned, sublet, or otherwise other provisions that— verts, bridges, and other structural devices. transferred except with the approval of the (1) ensure the oil and gas exploration, de- (5) Prohibitions on general public access Secretary. Prior to any such approval the velopment, and production activities on the and use on all pipeline access and service Secretary shall consult with, and give due Coastal Plain will result in no significant ad- roads. consideration to the views of, the Attorney verse effect on fish and wildlife, their habi- (6) Stringent reclamation and rehabilita- General. tat, and the environment; tion requirements, consistent with the SEC. 2206. LEASE TERMS AND CONDITIONS. (2) require the application of the best com- standards set forth in this title, requiring (a) IN GENERAL.—An oil or gas lease issued mercially available technology for oil and the removal from the Coastal Plain of all oil pursuant to this title shall— gas exploration, development, and produc- and gas development and production facili- (1) provide for the payment of a royalty of tion on all new exploration, development, ties, structures, and equipment upon comple- not less than 121⁄2 percent in amount or value and production operations; and tion of oil and gas production operations, ex- of the production removed or sold from the (3) ensure that the maximum amount of cept that the Secretary may exempt from lease, as determined by the Secretary under surface acreage covered by production and the requirements of this paragraph those fa- the regulations applicable to other Federal support facilities, including airstrips and cilities, structures, or equipment that the oil and gas leases; any areas covered by gravel berms or piers Secretary determines would assist in the (2) provide that the Secretary may close, for support of pipelines, does not exceed 2,000 management of the Arctic National Wildlife on a seasonal basis, portions of the Coastal acres on the Coastal Plain. Refuge and that are donated to the United Plain to exploratory drilling activities as (b) SITE-SPECIFIC ASSESSMENT AND MITIGA- States for that purpose. necessary to protect caribou calving areas TION.—The Secretary shall also require, with (7) Appropriate prohibitions or restrictions and other species of fish and wildlife; respect to any proposed drilling and related on access by all modes of transportation. (3) require that the lessee of lands within activities, that— (8) Appropriate prohibitions or restrictions the Coastal Plain shall be fully responsible (1) a site-specific analysis be made of the on sand and gravel extraction. and liable for the reclamation of lands with- probable effects, if any, that the drilling or (9) Consolidation of facility siting. in the Coastal Plain and any other Federal related activities will have on fish and wild- (10) Appropriate prohibitions or restric- lands that are adversely affected in connec- life, their habitat, and the environment; tions on use of explosives. tion with exploration, development, produc- (2) a plan be implemented to avoid, mini- (11) Avoidance, to the extent practicable, tion, or transportation activities conducted mize, and mitigate (in that order and to the of springs, streams, and river system; the under the lease and within the Coastal Plain extent practicable) any significant adverse protection of natural surface drainage pat- by the lessee or by any of the subcontractors effect identified under paragraph (1); and terns, wetlands, and riparian habitats; and or agents of the lessee; (3) the development of the plan shall occur the regulation of methods or techniques for (4) provide that the lessee may not dele- after consultation with the agency or agen- developing or transporting adequate supplies gate or convey, by contract or otherwise, the cies having jurisdiction over matters miti- of water for exploratory drilling. reclamation responsibility and liability to gated by the plan. (12) Avoidance or reduction of air traffic- another person without the express written (c) REGULATIONS TO PROTECT COASTAL related disturbance to fish and wildlife. approval of the Secretary; PLAIN FISH AND WILDLIFE RESOURCES, SUB- (13) Treatment and disposal of hazardous (5) provide that the standard of reclama- SISTENCE USERS, AND THE ENVIRONMENT.—Be- and toxic wastes, solid wastes, reserve pit tion for lands required to be reclaimed under fore implementing the leasing program au- fluids, drilling muds and cuttings, and do- this title shall be, as nearly as practicable, a thorized by this title, the Secretary shall mestic wastewater, including an annual condition capable of supporting the uses prepare and promulgate regulations, lease waste management report, a hazardous ma- which the lands were capable of supporting terms, conditions, restrictions, prohibitions, terials tracking system, and a prohibition on prior to any exploration, development, or stipulations, and other measures designed to chlorinated solvents, in accordance with ap- production activities, or upon application by ensure that the activities undertaken on the plicable Federal and State environmental the lessee, to a higher or better use as ap- Coastal Plain under this title are conducted law. proved by the Secretary; in a manner consistent with the purposes (14) Fuel storage and oil spill contingency (6) contain terms and conditions relating and environmental requirements of this planning. to protection of fish and wildlife, their habi- title. (15) Research, monitoring, and reporting tat, and the environment as required pursu- (d) COMPLIANCE WITH FEDERAL AND STATE requirements. ant to section 2203(a)(2); ENVIRONMENTAL LAWS AND OTHER REQUIRE- (16) Field crew environmental briefings.

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(17) Avoidance of significant adverse ef- (3) LIMITATION ON SCOPE OF CERTAIN RE- Native Claims Settlement Act (43 U.S.C. fects upon subsistence hunting, fishing, and VIEW.—Judicial review of a Secretarial deci- 1611) in accordance with the terms and condi- trapping by subsistence users. sion to conduct a lease sale under this title, tions of the Agreement between the Depart- (18) Compliance with applicable air and including the environmental analysis there- ment of the Interior, the United States Fish water quality standards. of, shall be limited to whether the Secretary and Wildlife Service, the Bureau of Land (19) Appropriate seasonal and safety zone has complied with the terms of this title and Management, and the Kaktovik Inupiat Cor- designations around well sites, within which shall be based upon the administrative poration effective January 22, 1993; and subsistence hunting and trapping shall be record of that decision. The Secretary’s iden- (2) to the Arctic Slope Regional Corpora- limited. tification of a preferred course of action to tion the remaining subsurface estate to (20) Reasonable stipulations for protection enable leasing to proceed and the Secretary’s which it is entitled pursuant to the August 9, of cultural and archeological resources. analysis of environmental effects under this 1983, agreement between the Arctic Slope Re- (21) All other protective environmental title shall be presumed to be correct unless gional Corporation and the United States of stipulations, restrictions, terms, and condi- shown otherwise by clear and convincing evi- America. tions deemed necessary by the Secretary. dence to the contrary. SEC. 2212. LOCAL GOVERNMENT IMPACT AID AND (e) CONSIDERATIONS.—In preparing and pro- (b) LIMITATION ON OTHER REVIEW.—Actions COMMUNITY SERVICE ASSISTANCE. mulgating regulations, lease terms, condi- of the Secretary with respect to which re- (a) FINANCIAL ASSISTANCE AUTHORIZED.— tions, restrictions, prohibitions, and stipula- view could have been obtained under this (1) IN GENERAL.—The Secretary may use tions under this section, the Secretary shall section shall not be subject to judicial re- amounts available from the Coastal Plain consider the following: view in any civil or criminal proceeding for Local Government Impact Aid Assistance (1) The stipulations and conditions that enforcement. Fund established by subsection (d) to provide timely financial assistance to entities that govern the National Petroleum Reserve- SEC. 2209. FEDERAL AND STATE DISTRIBUTION Alaska leasing program, as set forth in the OF REVENUES. are eligible under paragraph (2) and that are directly impacted by the exploration for or 1999 Northeast National Petroleum Reserve- (a) IN GENERAL.—Notwithstanding any Alaska Final Integrated Activity Plan/Envi- other provision of law, of the amount of ad- production of oil and gas on the Coastal ronmental Impact Statement. justed bonus, rental, and royalty revenues Plain under this title. (2) The environmental protection stand- from oil and gas leasing and operations au- (2) ELIGIBLE ENTITIES.—The North Slope ards that governed the initial Coastal Plain thorized under this title— Borough, Kaktovik, and other boroughs, mu- nicipal subdivisions, villages, and any other seismic exploration program under parts (1) 50 percent shall be paid to the State of community organized under Alaska State 37.31 to 37.33 of title 50, Code of Federal Reg- Alaska; and law shall be eligible for financial assistance ulations. (2) except as provided in section 2212(d) the under this section. (3) The land use stipulations for explor- balance shall be deposited into the Treasury (b) USE OF ASSISTANCE.—Financial assist- atory drilling on the KIC-ASRC private lands as miscellaneous receipts. ance under this section may be used only that are set forth in Appendix 2 of the Au- (b) PAYMENTS TO ALASKA.—Payments to for— gust 9, 1983, agreement between Arctic Slope the State of Alaska under this section shall (1) planning for mitigation of the potential Regional Corporation and the United States. be made semiannually. effects of oil and gas exploration and devel- (f) FACILITY CONSOLIDATION PLANNING.— (c) USE OF BONUS PAYMENTS FOR LOW-IN- opment on environmental, social, cultural, (1) IN GENERAL.—The Secretary shall, after COME HOME ENERGY ASSISTANCE.—Amounts recreational and subsistence values; providing for public notice and comment, that are received by the United States as bo- (2) implementing mitigation plans and prepare and update periodically a plan to nuses for leases under this title and depos- maintaining mitigation projects; govern, guide, and direct the siting and con- ited into the Treasury under subsection (3) developing, carrying out, and maintain- struction of facilities for the exploration, de- (a)(2) may be appropriated to the Secretary ing projects and programs that provide new velopment, production, and transportation of of the Health and Human Services, in addi- or expanded public facilities and services to Coastal Plain oil and gas resources. tion to amounts otherwise available, to pro- address needs and problems associated with (2) OBJECTIVES.—The plan shall have the vide assistance under the Low-Income Home such effects, including firefighting, police, following objectives: Energy Assistance Act of 1981 (42 U.S.C. 8621 water, waste treatment, medivac, and med- (A) Avoiding unnecessary duplication of fa- et seq.). ical services; and cilities and activities. SEC. 2210. RIGHTS-OF-WAY ACROSS THE COASTAL (4) establishment of a coordination office, (B) Encouraging consolidation of common PLAIN. by the North Slope Borough, in the City of facilities and activities. (a) EXEMPTION.—Title XI of the Alaska Na- Kaktovik, which shall— (C) Locating or confining facilities and ac- tional Interest Lands Conservation Act (16 (A) coordinate with and advise developers tivities to areas that will minimize impact U.S.C. 3161 et seq.) shall not apply to the on local conditions, impact, and history of on fish and wildlife, their habitat, and the issuance by the Secretary under section 28 of the areas utilized for development; and environment. the Mineral Leasing Act (30 U.S.C. 185) of (B) provide to the Committee on Resources (D) Utilizing existing facilities wherever rights-of-way and easements across the of the Senate and the Committee on Energy practicable. Coastal Plain for the transportation of oil and Resources of the Senate an annual re- (E) Enhancing compatibility between wild- and gas. port on the status of coordination between life values and development activities. (b) TERMS AND CONDITIONS.—The Secretary developers and the communities affected by (g) ACCESS TO PUBLIC LANDS.—The Sec- shall include in any right-of-way or ease- development. retary shall— ment referred to in subsection (a) such terms (c) APPLICATION.— (1) manage public lands in the Coastal and conditions as may be necessary to en- (1) IN GENERAL.—Any community that is Plain subject to subsections (a) and (b) of sure that transportation of oil and gas does eligible for assistance under this section section 811 of the Alaska National Interest not result in a significant adverse effect on may submit an application for such assist- Lands Conservation Act (16 U.S.C. 3121); and the fish and wildlife, subsistence resources, ance to the Secretary, in such form and (2) ensure that local residents shall have their habitat, and the environment of the under such procedures as the Secretary may reasonable access to public lands in the Coastal Plain, including requirements that prescribe by regulation. Coastal Plain for traditional uses. facilities be sited or designed so as to avoid (2) NORTH SLOPE BOROUGH COMMUNITIES.—A SEC. 2208. EXPEDITED JUDICIAL REVIEW. unnecessary duplication of roads and pipe- community located in the North Slope Bor- (a) FILING OF COMPLAINT.— lines. ough may apply for assistance under this (1) DEADLINE.—Subject to paragraph (2), (c) REGULATIONS.—The Secretary shall in- section either directly to the Secretary or any complaint seeking judicial review of any clude in regulations under section 2203(g) through the North Slope Borough. provision of this title or any action of the provisions granting rights-of-way and ease- (3) APPLICATION ASSISTANCE.—The Sec- Secretary under this title shall be filed in ments described in subsection (a) of this sec- retary shall work closely with and assist the any appropriate district court of the United tion. North Slope Borough and other communities States— SEC. 2211. CONVEYANCE. eligible for assistance under this section in (A) except as provided in subparagraph (B), In order to maximize Federal revenues by developing and submitting applications for within the 90-day period beginning on the removing clouds on title to lands and clari- assistance under this section. date of the action being challenged; or fying land ownership patterns within the (d) ESTABLISHMENT OF FUND.— (B) in the case of a complaint based solely Coastal Plain, the Secretary, notwith- (1) IN GENERAL.—There is established in the on grounds arising after such period, within standing the provisions of section 1302(h)(2) Treasury the Coastal Plain Local Govern- 90 days after the complainant knew or rea- of the Alaska National Interest Lands Con- ment Impact Aid Assistance Fund. sonably should have known of the grounds servation Act (16 U.S.C. 3192(h)(2)), shall con- (2) USE.—Amounts in the fund may be used for the complaint. vey— only for providing financial assistance under (2) VENUE.—Any complaint seeking judicial (1) to the Kaktovik Inupiat Corporation this section. review of an action of the Secretary under the surface estate of the lands described in (3) DEPOSITS.—Subject to paragraph (4), this title may be filed only in the United paragraph 1 of Public Land Order 6959, to the there shall be deposited into the fund States Court of Appeals for the District of extent necessary to fulfill the Corporation’s amounts received by the United States as Columbia. entitlement under section 12 of the Alaska revenues derived from rents, bonuses, and

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00165 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.069 H20PT1 H2318 CONGRESSIONAL RECORD — HOUSE April 20, 2005 royalties under on leases and lease sales au- y in 2025, and that the natural gas consump- (12) In addition to being the ‘‘Saudi Ara- thorized under this title. tion of the three contiguous North American bia’’ of oil shale with at least 75 percent of (4) LIMITATION ON DEPOSITS.—The total countries will rise by 48.0 percent from 26.9 the world’s oil shale resource base, the amount in the fund may not exceed Tcf/y in 2001 (29.3 percent of world consump- United States is also the ‘‘Saudi Arabia’’ of $11,000,000. tion) to 39.8 Tcf/y in 2025 (26.3 percent of coal. The EIA estimates that total economi- (5) INVESTMENT OF BALANCES.—The Sec- world consumption). cally recoverable reserves of coal around the retary of the Treasury shall invest amounts (8) EIA projects that, without a change in world are 1,083 billion short tons–enough to in the fund in interest bearing government governmental policy, natural gas production last approximately 210 years at current con- securities. in the three contiguous North American sumption levels. EIA estimates that the eco- (e) AUTHORIZATION OF APPROPRIATIONS.—To countries will rise by 21.7 percent from 27.6 nomically recoverable coal reserves of the provide financial assistance under this sec- Tcf/y in 2001 (30.3 percent of world produc- United States, at 25 percent of total world tion there is authorized to be appropriated to tion) to 33.6 Tcf/y in 2025 (22.3 percent of reserves, are the largest in the world. Total world production), not including Alaskan gas the Secretary from the Coastal Plain Local United States coal resources are vastly larg- Government Impact Aid Assistance Fund through the natural gas pipeline, gas from er than the 270 billion short tons of economi- $5,000,000 for each fiscal year. gas hydrates, nor expanded coal gasification. cally recoverable reserves, and with new TITLE XXIII—SET AMERICA FREE (SAFE) The United States Geological Survey esti- mates that natural gas hydrate resources in- technology much more could economically SEC. 2301. SHORT TITLE. place total 169,000 Tcf in Alaska and its sur- be made available to supply our energy This title may be cited as the ‘‘Set Amer- needs. World consumption of coal in 2001 was ica Free Act of 2005’’ or the ‘‘SAFE Act’’. rounding waters, and approximately 150,000 Tcf off the lower-48 Atlantic, Pacific, and 5.26 billion short tons and is projected to SEC. 2302. FINDINGS. Gulf of Mexico coastlines. grow to 7.57 billion short tons in 2025. 70 per- Congress finds the following: (9) The terrorist attacks in the United cent of the increased world consumption is (1) The three contiguous North American States on September 11, 2001, and the subse- projected to be attributable to China and countries of Canada, Mexico, and the United quent expansion of terrorist organizations in India. United States consumption of coal in States share many economic, environmental, regions outside of North America in areas 2001 was 1.06 billion short tons and is pro- and security interests, including being that are major suppliers of oil, and potential jected to grow to 1.57 billion short tons in among each others’ largest trading partners, suppliers of liquified natural gas, to the 2025. similar interests in clean air and clean United States have significantly increased (13) Growth in world oil consumption has water, concern about infiltration of terror- the national security and homeland security been outstripping growth in world produc- ists from nations that host terrorist organi- risks to the United States of relying upon oil tion of conventional oil resources for several zations, and interdependent economic sys- and natural gas supply sources located out- primary reasons, including that conven- tems. side of the three contiguous North American tional oil production in most oil producing (2) North American energy self-sufficiency countries. The United States imports 60 per- countries has peaked and is now declining, is consistent with the shared interests of the cent of our oil supplies–the highest in his- and developing nations such as China and three contiguous North American countries tory. After Canada and Mexico, the largest India are greatly accelerating their con- and should be achieved through methods oil suppliers to the United States are Saudi sumption of crude oil. that recognize and respect the sovereignty of Arabia, Venezuela, Nigeria, Iraq, and Algeria (14) The recent increases in world oil prices each of the three contiguous North American all of which suffer from significant insta- are caused by the faster growth in demand countries. bility. over supply and this trend is likely to con- (3) The Energy Information Administra- (10) According to published scientific, tech- tinue because the remaining conventional oil tion (EIA), in its April 2004 International En- nical, and economic reports, the three con- is more difficult and expensive to find and ergy Outlook, projects that world energy tiguous North American countries have the produce, and frequently not reasonably consumption will increase by 54 percent from resource base and technical ability to in- available. 2001 to 2025 and that world oil consumption crease production of oil by at least 15 Mmbbl/ (15) The National Intelligence Council, an will rise from 77 million barrels per day d by 2025 and 20 Mmbbl/d by 2030 even before advisor to the Central Intelligence Agency, (Mmbbl/d) in 2001 to 121 Mmbbl/d in 2025. increases in coal liquifaction, biofuels, gas- found in its report, ‘‘Mapping the Global Fu- (4) In the same report, EIA projects that, to-liquids, and other methods of creating liq- ture,’’ NIC 2004–13, December 2004, that ‘‘Con- without a change in governmental policy, uid substitutes for crude oil and crude oil tinued limited access of the international oil the United States oil consumption will rise products. companies to major fields could restrain this by 44.4 percent from 19.6 Mmbbl/d (7.15 billion (11) This increase in North American oil investment necessary for supply to meet de- barrels per year (Bbbl/y)) in 2001 to 28.3 production would be derived from a variety mand, however, and many of the areas—the Mmbbl/d (10.33 Bbbl/y) in 2025, and that the of resources including, among others— Caspian Sea, Venezuela, West Africa, and oil consumption of the three contiguous (A) the United States oil shale resource South China Sea—that are being counted on North American countries of Canada, Mex- base (2 trillion barrels of oil in place out of to provide increased output involve substan- ico, and the United States (in this title re- 2.6 trillion in the world) believed to be capa- tial political or economic risk. Traditional ferred to as the ‘‘three contiguous North ble of eventually producing 10 Mmbbl/d for suppliers in the Middle East are also increas- American countries’’) will rise by 47.2 per- more than 100 years; cent from 23.5 Mmbbl/d (8.58 Bbbl/y) in 2001 (B) the Canadian Alberta oil sands resource ingly unstable. Thus sharper demand-driven (30.5 percent of world consumption) to 34.6 base (1.7 trillion barrels of oil in place), also competition for resources, perhaps accom- Mmbbl/d (12.6 Bbbl/y) in 2025 (28.6 percent of believed to be capable of eventually pro- panied by a major disruption of oil supplies, world consumption). ducing 10 Mmbbl/d for more than 100 years; is among the key uncertainties. China and (5) EIA projects that, without a change in (C) the United States heavy oil resource India, which lack adequate domestic energy governmental policy, oil production in the base (80 billion barrels of oil in place); resources, will have to ensure continued ac- three contiguous North American countries (D) the remaining 400 billion barrels of con- cess to outside suppliers; thus, the need for will rise by 18.8 percent from 15.4 Mmbbl/d ventional oil in place in the United States of energy will be a major factor in shaping (5.6 Bbbl/y) in 2001 (19.4 percent of world pro- which 60 billion barrels are potentially pro- their foreign and defense policies, including duction) to 18.3 Mmbbl/d (6.7 Bbbl/y) in 2025 ducible with advanced CO2 enhanced oil re- expanding naval power’’. (14.5 percent of world production). covery technology; (16) Because the price of crude oil is set on (6) EIA projects that, without a change in (E) the United States oil sands resource a world market basis, the excess of world de- governmental policy, the three contiguous base of 54 billion barrels of oil in place; mand over supply will continue to drive up North American countries contain 492.7 (F) the Arctic National Wildlife Refuge oil prices to levels potentially several times Bbbls of oil resources (16.8 percent of total Coastal Plain area (ANWR) with a mean those of today unless all nations capable of world oil resources) (not including unconven- technically recoverable resource of more producing significant quantities of incre- tional oil resources such as United States oil than 10 billion barrels of oil; mental oil respond by ensuring such produc- shale or the overwhelming majority of Cana- (G) the National Petroleum Reserve-Alas- tion is developed and available for consump- dian oil sands) at the base case oil price, ka (NPR-A) with a mean technically recover- tion on an expedited basis. which represents sufficient oil to fully sup- able resource of 9.3 billion barrels of oil; (17) The eventual, long-term solution is to ply the needs of the three contiguous North (H) the 12–18 billion barrels of oil likely to drastically reduce the world’s reliance on oil American countries for 57.4 years based on be producible in the Canadian Atlantic off- as the primary fuel for transportation (40 2001 oil consumption and 39.1 years based on shore; percent of the United States consumption of projected 2025 oil consumption, resulting in (I) the extensive resources of the Canadian oil is to power light motor vehicles). an average of approximately 48 years of full Arctic onshore and offshore; (18) North America, while maximizing the supply. (J) the extensive resources in the Alaskan production of oil, must use the next 40 years (7) In the same report, EIA projects that, Arctic offshore and the outer Continental as a transition period to a more sustainable without a change in governmental policy, Shelf offshore the lower-48 United States; energy model. the United States natural gas consumption (K) other extensive oil resources in Canada (19) The United States also has large re- will rise by 38.9 percent from 22.6 trillion and the United States; and newable energy resource potential including cubic feet per year (Tcf/y) in 2001 to 31.4 Tcf/ (L) the extensive oil resources of Mexico. wind, geothermal, solar, biomass, ocean

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00166 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.069 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2319 thermal, waves and currents, and hydro- for every one million bbl/d of oil supply dis- ommendations for a coordinated and com- electric. The EIA’s July 2004 report, ‘‘Renew- rupted, world oil prices might increase $3–$5 prehensive North American energy policy able Energy Trends 2003’’, found that renew- per barrel. Sandia found six solution options, that will achieve energy self-sufficiency by able energy provided 6 percent of the Na- including— 2025 within the three contiguous North tion’s energy supply in 2003. The largest re- (A) maintenance of strategic reserves; American nation area of Canada, Mexico, newable energy source was biomass with 47 (B) support of foreign government regimes and the United States. percent of the renewables total energy out- likely to maintain production; SEC. 2304. UNITED STATES COMMISSION ON put, followed closely by hydroelectric with 45 (C) military deterrence, protection, or NORTH AMERICAN ENERGY FREE- percent, then geothermal with 5 percent, intervention to secure production sources DOM. wind with 2 percent, and solar with 1 per- and facilities; (a) ESTABLISHMENT.—There is hereby es- cent. Technology is rapidly advancing, posi- (D) diversification of production sources; tablished the United States Commission on tioning renewable energy to provide an in- (E) reduction of oil intensity through con- North American Energy Freedom (in this creasing share of our energy supply in the servation or through more efficient energy title referred to as the ‘‘Commission’’). The residential, commercial, industrial, trans- use; and Federal Advisory Committee Act (5 U.S.C. portation, and electric power sectors. The (F) development and deployment of alter- App.), except sections 3, 7, and 12, does not United States public lands and waters com- natives to oil (or gas). apply to the Commission. prise 2.25 billion acres, large portions of Sandia noted ‘‘that none of these measures (b) MEMBERSHIP.— which may be available to rapidly expand seems likely to emerge from business-as- (1) APPOINTMENT.—The Commission shall this clean and renewable alternative to fossil usual market processes. Thus implementa- be composed of 16 members appointed by the energy resources. These lands should be re- tion of these measures will usually require President from among individuals described viewed for their potential contribution to public policy decisions. In the case of the in paragraph (2) who are knowledgeable on our Nation’s domestic energy security. first three, they would be foreign and mili- energy issues, including oil and gas explo- (20) The United States has the strongest tary policy decisions; in the case of the lat- ration and production, crude oil refining, oil environmental safeguards in the world, and ter three, they would be legal, regulatory, or and gas pipelines, electricity production and our standards, science, and technology have governmental subsidy decisions.’’ Sandia transmission, coal, unconventional hydro- proven that the United States can produce mentioned oil shale and tar sands as poten- carbon resources, fuel cells, motor vehicle energy in an environmentally benign man- tial diversified sources of oil supplies, and power systems, nuclear energy, renewable ner, particularly when compared with the hydrogen, coal, renewables, nuclear fission, energy, biofuels, energy efficiency, and en- lesser environmental standards in most for- and methane hydrates as alternatives to oil. ergy conservation. The membership of the eign oil producing countries. (26) President Clinton concluded, on Feb- Commission shall be balanced by area of ex- (21) The 1999 Clinton Administration re- ruary 16, 1995, under section 232 of the Trade pertise to the extent consistent with main- port, ‘‘Environmental Benefits of Advanced Expansion Act of 1962, that ‘‘. . . the nation’s taining the highest level of expertise on the Oil and Gas Exploration and Production growing reliance on imports of crude oil and Commission. Members of the Commission Technology,’’ highlights the technological refined petroleum products threaten the na- may be citizens of Canada, Mexico, or the achievements of the United States oil and tion’s security because they increase U.S. United States, and the President shall en- gas industry. The report noted, ‘‘public vulnerability to oil supply interruptions.’’. sure that citizens of all three nations are ap- awareness of the significant and impressive In 1994 crude oil imports were 7.051 million pointed to the Commission. environmental benefits from new exploration barrels per day. On March 24, 2000, President (2) NOMINATIONS.—The President shall ap- and production (E&P) technology advances Clinton, upon further review under section point the members of the Commission within remains limited . . .. We believe it is impor- 232, found, ‘‘I have reviewed and approved 60 days after the effective date of this Act, tant to tell this remarkable story of environ- the findings of your investigative report . . . including individuals nominated as follows: mental progress in E&P technology. Greater that imports of crude oil threaten to impair (A) 4 members shall be appointed from awareness of the industry’s achievements in the national security.’’. Between the two amongst individuals independently deter- environmental protection will provide the statements by President Clinton, United mined by the President to be qualified for context for effective policy, and for informed States crude oil imports increased 21.6 per- appointment. decision making by both the private and cent to 8.581 million barrels per day in 1999. (B) 4 members shall be appointed from a public sectors.’’. (27) Economists have found that while list of 8 individuals who shall be nominated (22) Many Americans believe the myth that OPEC is an important source of oil price in- by the majority leader of the Senate in con- spills from oil and natural gas exploration creases, the United States government is sultation with the chairman of the Com- and production are the leading cause of oil also partly to blame because overly burden- mittee on Energy and Natural Resources of pollution in the oceans and the Nation’s riv- some government regulations on domestic the Senate. ers and streams. The reality is that, to the energy exploration, production, and sales (C) 4 members shall be appointed from a contrary, in 2002 the National Academy of have supported OPEC’s monopoly power and list of 8 individuals who shall be nominated Sciences found that offshore oil and natural restricted competition from American en- by the Speaker of the House of Representa- gas exploration and production account for a ergy companies, in addition to making ex- tives in consultation with the chairmen of total of only 2 percent of the oil in the North pansive highly prospective areas off-limits to the Committees on Energy and Commerce American marine environment; natural leasing and production. and Resources of the House of Representa- sources such as oil seeps account for 63 per- (28) In addition to jeopardizing our na- tives. cent of such oil; industrial and municipal tional and energy security, importing the (D) 2 members shall be appointed from a discharges, including urban runoff, account majority of our oil also injures our economic list of 4 individuals who shall be nominated for 22 percent of such oil; atmospheric pollu- security. The United States imported ap- by the minority leader of the Senate in con- tion accounts for 8 percent of such oil; ma- proximately 4.7 billion barrels of oil in 2004, sultation with the ranking Member of the rine transportation accounts for 3 percent of of which 1.4 billion barrels were from Canada Committee on Energy and Natural Resources such oil; and recreational vessels account for and Mexico. Imported energy creates very of the Senate. 2 percent of such oil. few jobs in the United States and makes only (E) 2 members shall be appointed from a (23) Various national security organiza- a very minor contribution to our Gross Do- list of 4 individuals who shall be nominated tions and experts have warned the United mestic Product (GDP). If we substitute by the minority leader of the House in con- States of the escalating risks to our national North American production for the remain- sultation with the ranking Members of the security of relying on transoceanic oil im- ing 3.3 billion barrels of imports per year, at Committees on Energy and Commerce and ports from unstable regions of the world for $40 per barrel the new production would sell Resources of the House of Representatives. a significant part of our oil supplies, and for $132 billion. A widely used commercial (3) CHAIRMAN.—The chairman of the Com- they have urged the Nation to reduce its de- economics model projects that GDP would mission shall be selected by the President. pendence on oil. increase by $336 billion, creating 1,667,160 The chairman of the Commission shall be re- (24) Polls consistently have found that a jobs, each with an average total annual com- sponsible for— majority of individuals in the United States pensation of $50,356. Further, such activity is (A) the assignment of duties and respon- strongly support reducing our reliance on projected to generate approximately $22 bil- sibilities among staff personnel and their foreign energy sources. lion in indirect business taxes, including continuing supervision; and (25) A recent report on ‘‘Energy and Na- sales, excise, and severance taxes. At a one- (B) the use and expenditure of funds avail- tional Security’’ issued by Sandia National eighth royalty, total royalty payments to able to the Commission. Laboratories, SAND2003–3287, September mineral rights owners would approximate (4) VACANCIES.—Any vacancy on the Com- 2003, found that our national security is $16.5 billion per year. Further, our imported mission shall be filled in the same manner as threatened by our continued reliance on vast energy represents more than 25 percent of the original incumbent was appointed. quantities of oil from unstable foreign our international trade deficit. American (c) RESOURCES.—In carrying out its func- sources. The report found that supply disrup- production could eliminate two-thirds of the tions under this section, the Commission— tions, caused by terrorists or otherwise, 25 percent, strengthening our economy. (1) is authorized to secure directly from could immediately remove many millions of SEC. 2303. PURPOSE. any Federal agency or department any infor- barrels of oil per day from the world supply, The purpose of this title is to establish a mation it deems necessary to carry out its and noted that the EIA has estimated that United States commission to make rec- functions under this Act, and each such

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00167 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.069 H20PT1 H2320 CONGRESSIONAL RECORD — HOUSE April 20, 2005 agency or department is authorized to co- SEC. 2305. NORTH AMERICAN ENERGY FREEDOM (3) Reliability. operate with the Commission and, to the ex- POLICY. (4) Safe conveyance of passengers and oper- tent permitted by law, to furnish such infor- Within 90 days after receiving and consid- ator. mation (other than information described in ering the report and recommendations of the (c) PARTNERSHIP.—In order to accomplish section 552(b)(1)(A) of title 5, United States Commission under section 2304, the Presi- the objective set forth in subsection (b), the Code) to the Commission, upon the request dent shall submit to Congress a statement of Secretaries shall establish a partnership of the Commission; proposals to implement or respond to the among the Departments, manufacturers, (2) may enter into contracts, subject to the Commission’s recommendations for a coordi- other affected or related industries, Native availability of appropriations for con- nated, comprehensive, and long-range na- American Tribes, and the National Park tracting, and employ such staff experts and tional policy to achieve North American en- Service shuttle operators and tour operators consultants as may be necessary to carry out ergy freedom by 2025. authorized to provide services in Grand Can- the duties of the Commission, as provided by TITLE XXV—GRAND CANYON HYDROGEN- yon National Park. section 3109 of title 5, United States Code; POWERED TRANSPORTATION DEM- SEC. 2505. REPORTS TO CONGRESS. and ONSTRATION One year after the date of enactment of (3) shall establish a multidisciplinary SEC. 2501. SHORT TITLE. this Act, and annually thereafter for the du- science and technical advisory panel of ex- This title may be cited as the ‘‘Grand Can- ration of the program, the Secretaries shall perts in the field of energy to assist the Com- yon Hydrogen-Powered Transportation Dem- submit a report to the Committees on Appro- mission in preparing its report, including en- onstration Act of 2005’’. priations, Resources, and Energy and Com- suring that the scientific and technical in- SEC. 2502. DEFINITIONS. merce of the House of Representatives and formation considered by the Commission is For purposes of this title, the term— the Committees on Appropriations and En- based on the best scientific and technical in- (1) ‘‘Departments’’ means the Department ergy and Natural Resources of the Senate de- formation available. of Energy jointly with the Department of the scribing the ongoing activities of the Secre- (d) STAFFING.—The chairman of the Com- Interior; and taries and the Departments relating to the mission may, without regard to the civil (2) ‘‘Secretaries’’ means the Secretary of program authorized under this title and, to service laws and regulations, appoint and Energy jointly with the Secretary of the In- the extent practicable, the activities planned terminate an executive director and such terior. for the coming fiscal year. other additional personnel as may be nec- SEC. 2503. FINDINGS. SEC. 2506. AUTHORIZATION OF APPROPRIATIONS. essary for the Commission to perform its du- The Congress finds that— ties. The executive director shall be com- (1) there is a need for a research and devel- There are authorized to be appropriated to pensated at a rate not to exceed the rate opment program to support and foster the the Secretaries to carry out this title, in ad- payable for Level IV of the Executive Sched- development, demonstration, and deploy- dition to any amounts made available for ule under chapter 5136 of title 5, United ment of emerging hydrogen-based transpor- these or related purposes under other Acts, States Code. The chairman shall select staff tation technologies suitable for use in sen- $400,000 per year for three consecutive fiscal from among qualified citizens of Canada, sitive resource areas; years beginning with the full fiscal year fol- Mexico, and the United States of America. (2) partnerships between the Department of lowing the date of enactment of this Act. (e) MEETINGS.— Energy, the Department of the Interior, Na- TITLE XXVI—ADDITIONAL PROVISIONS (1) ADMINISTRATION.—All meetings of the tive American Tribes, and United States in- Commission shall be open to the public, ex- SEC. 2601. LIMITATION ON REQUIRED REVIEW dustry to develop hydrogen-based energy UNDER NEPA. cept that a meeting or any portion of it may technologies can provide significant benefits be closed to the public if it concerns matters (a) LIMITATION ON REVIEW.—Action by the to our Nation, including enhancing our envi- Secretary of the Interior in managing the or information described in section 552b(c) of ronmental stewardship, reducing our depend- title 5, United States Code. Interested per- public lands with respect to any of the ac- ence on foreign oil, increasing our energy se- tivities described in subsection (b) shall not sons shall be permitted to appear at open curity, as well as creating jobs for United meetings and present oral or written state- be subject to review under section 102(2)(C) States workers and improving the competi- the National Environmental Policy Act of ments on the subject matter of the meeting. tive position of the United States in the The Commission may administer oaths or af- 1969 (42 U.S.C. 4332(2)(C)), if the activity is global economy; and conducted for the purpose of exploration or firmations to any person appearing before it. (3) when technologically and economically (2) NOTICE; MINUTES; PUBLIC AVAILABILITY development of a domestic Federal energy feasible, the implementation of clean, silent source. OF DOCUMENTS.— or nearly silent, hydrogen-based transpor- (b) ACTIVITIES DESCRIBED.—The activities (A) NOTICE.—All open meetings of the Com- tation technologies would further resource referred to in subsection (a) are the fol- mission shall be preceded by timely public stewardship and experiential goals in sen- lowing: notice in the Federal Register of the time, sitive resource areas including units of the (1) Geophysical exploration that does not place, and subject of the meeting. National Park System, such as Grand Can- require road building. (B) MINUTES.—Minutes of each meeting yon National Park. shall be kept and shall contain a record of (2) Individual surface disturbances of less SEC. 2504. RESEARCH, DEVELOPMENT, AND DEM- than 5 acres. the people present, a description of the dis- ONSTRATION PROGRAM. (3) Drilling an oil or gas well at a location cussion that occurred, and copies of all (a) IN GENERAL.—The Secretaries shall or well pad site at which drilling has oc- statements filed. Subject to section 552 of jointly establish and carry out a research curred previously. title 5, United States Code, the minutes and and development program, in partnership (4) Drilling an oil or gas well within a de- records of all meetings and other documents with the private sector, relating to hydro- veloped field for which an approved land use that were made available to or prepared for gen-based transportation technologies suit- plan or any environmental document pre- the Commission shall be available for public able for operations in sensitive resource pared pursuant to the National Environ- inspection and copying at a single location areas such as national parks. The Secre- mental Policy Act of 1969 analyzed such in the offices of the Commission. taries, in partnership with the private sec- drilling as a reasonably foreseeable activity. (3) INITIAL MEETING.—The Commission tor, shall conduct a demonstration of hydro- (5) Disposal of water produced from an oil shall hold its first meeting within 30 days gen-based public transportation technology or gas well, if the disposal is in compliance after all 16 members have been appointed. at Grand Canyon National Park within three with a permit issued under the Federal (f) REPORT.—Within 12 months after the ef- years after the date of enactment of this Water Pollution Control Act. fective date of this Act, the Commission Act. At his discretion, the Secretary of En- (6) Placement of a pipeline in an approved shall submit to Congress and the President a ergy may choose to extend existing Depart- right-of-way corridor. final report of its findings and recommenda- ment of Energy hydrogen-related vehicle re- (7) Maintenance of a minor activity, other tions regarding North American energy free- search and development programs in order to than any construction or major renovation dom. meet the objectives and requirements of this of a building or facility. (g) ADMINISTRATIVE PROCEDURE FOR RE- title. The Secretaries shall provide pref- PORT AND REVIEW.—Chapter 5 and chapter 7 erence to tribal entities in the establishment SEC. 2602. ENHANCING ENERGY EFFICIENCY IN of title 5, United States Code, do not apply of the research and development program. MANAGEMENT OF FEDERAL LANDS. to the preparation, review, or submission of (b) OBJECTIVE.—The objective of the pro- (a) SENSE OF THE CONGRESS.—It is the sense the report required by subsection (f). gram shall be to research, develop, and dem- of the Congress that Federal agencies should (h) TERMINATION.—The Commission shall onstrate, in cooperation with affected and enhance the use of energy efficient tech- cease to exist 90 days after the date on which related industries, a hydrogen-based alter- nologies in the management of natural re- it submits its final report. native public transportation system suitable sources. (i) AUTHORIZATION OF APPROPRIATIONS.— for operations within Grand Canyon Na- (b) ENERGY EFFICIENT BUILDINGS.—To the There is authorized to be appropriated to tional Park, that meets the following stand- extent practicable, the Secretary of the Inte- carry out this chapter a total of $10,000,000 ards: rior, the Secretary of Commerce, and the for the 2 fiscal-year period beginning with (1) Silent or near-silent operation. Secretary of Agriculture shall seek to incor- fiscal year 2005, such sums to remain avail- (2) Low, ultra low, or zero emission of pol- porate energy efficient technologies in pub- able until expended. lutants. lic and administrative buildings associated

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00168 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.069 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2321 with management of the National Park Sys- In section 148 of the bill, strike subpara- state, without substantive change, existing tem, National Wildlife Refuge System, Na- graph (B) of paragraph (1) and insert the fol- burden of proof provisions and existing Com- tional Forest System, National Marine Sanc- lowing: mission civil enforcement authority, respec- tuaries System, and other public lands and (B) in paragraph (2), by inserting ‘‘, and, tively. These clarifying changes do not alter resources managed by the Secretaries. with respect to rehabilitation and new con- any existing burden of proof or grant any (c) ENERGY EFFICIENT VEHICLES.—To the struction of public and assisted housing new statutory authority. The provisions of extent practicable, the Secretary of the Inte- funded by HOPE VI revitalization grants this section, as restated herein, continue to rior, the Secretary of Commerce, and the under section 24 of the United States Hous- apply to any action pending on or com- Secretary of Agriculture shall seek to use ing Act of 1937 (42 U.S.C. 1437v), the 2003 menced after the date of enactment of this energy efficient motor vehicles, including International Energy Conservation Code’’ Act for any act, omission, or violation occur- vehicles equipped with biodiesel or hybrid after ‘‘90.1–1989’)’’; ring before, on, or after, such date of enact- engine technologies, in the management of In section 148 of the bill, strike subpara- ment. the National Park System, National Wildlife graph (B) of paragraph (2) and all that fol- (b) FRAUD AUTHORITY.—Section 4b of the Refuge System, National Forest System, Na- lows through the end of paragraph (3) and in- Commodity Exchange Act (7 U.S.C. 6b) is tional Marine Sanctuaries System, and other sert the following: amended— public lands and resources managed by the (B) by inserting ‘‘, and, with respect to re- (1) by redesignating subsections (b) and (c) Secretaries. habilitation and new construction of public as subsections (c) and (d), respectively; and The CHAIRMAN. No amendment to and assisted housing funded by HOPE VI re- (2) by striking subsection (a) and inserting the bill shall be in order except those vitalization grants under section 24 of the the following: printed in House Report 109–49. United States Housing Act of 1937 (42 U.S.C. ‘‘(a) It shall be unlawful— Each amendment may be offered only 1437v), the 2003 International Energy Con- ‘‘(1) for any person, in or in connection servation Code’’ before the period at the end; with any order to make, or the making of, in the order printed in the report, by a and any contract of sale of any commodity for Member designated in the report, shall (3) in subsection (c)— future delivery or in interstate commerce, be considered read, shall be debatable (A) in the heading, by inserting ‘‘AND THE that is made, or to be made, on or subject to for the time specified in the report, INTERNATIONAL ENERGY CONSERVATION CODE’’ the rules of a designated contract market, equally divided and controlled by the after ‘‘MODEL ENERGY CODE’’; and for or on behalf of any other person; or proponent and an opponent, shall not (B) by inserting ‘‘, or, with respect to reha- ‘‘(2) for any person, in or in connection be subject to amendment except as bilitation and new construction of public and with any order to make, or the making of, specified in the report, and shall not be assisted housing funded by HOPE VI revital- any contract of sale of any commodity for ization grants under section 24 of the United future delivery, or other agreement, con- subject to a demand for division of the States Housing Act of 1937 (42 U.S.C. 1437v), tract, or transaction subject to section 5a(g) question. the 2003 International Energy Conservation (1) and (2) of this Act, that is made, or to be It is now in order to consider amend- Code’’ after ‘‘1989’’. made, for or on behalf of, or with, any other ment No. 1 printed in House Report In section 205(a), in the proposed section person, other than on or subject to the rules 109–49. 570(a)(1), strike ‘‘Secretary’’ and insert ‘‘Ad- of a designated contract market— AMENDMENT NO. 1 OFFERED BY MR. HALL ministrator of General Services’’. ‘‘(A) to cheat or defraud or attempt to Mr. HALL. Madam Chairman, I rise In section 205(a), in the proposed section cheat or defraud such other person; as the designee of the chairman and I 570(a)(4), strike ‘‘Secretary’’ and insert ‘‘Ad- ‘‘(B) willfully to make or cause to be made ministrator’’. to such other person any false report or offer amendment No. 1. In section 205(a), in the proposed section statement or willfully to enter or cause to be The CHAIRMAN. The Clerk will des- 570(b)(1), strike ‘‘Secretary’’ and insert ‘‘Ad- entered for such other person any false ignate the amendment. ministrator’’. record; The text of the amendment is as fol- In section 205(a), in the proposed section ‘‘(C) willfully to deceive or attempt to de- lows: 570(b)(2), strike ‘‘Secretary’’ and insert ‘‘Ad- ceive such other person by any means what- Amendment No. 1 Offered by Mr. HALL: ministrator’’. soever in regard to any order or contract or In the item in the table of contents relat- In section 205(a), strike ‘‘Part 4 of title V the disposition or execution of any order or ing to section 142, strike ‘‘cdbg’’ and insert of the National Energy Conservation Policy contract, or in regard to any act of agency ‘‘CDBG’’. Act (42 U.S.C. 8271 et seq.)’’ and insert ‘‘Sub- performed, with respect to any order or con- In section 105(a)(1), strike ‘‘Section 801(a)’’ chapter VI of chapter 31 of title 40, United tract for or, in the case of subsection (a)(2), and insert ‘‘Section 801(a)(2)’’. States Code,’’. with such other person; or In section 105(a)(1), strike ‘‘(42 U.S.C. In section 205(a), at the beginning of the ‘‘(D)(i) to bucket an order if such order is 8287(a))’’ and insert ‘‘(42 U.S.C. 8287(a)(2))’’. quoted material, strike ‘‘sec. 570.’’ and insert either represented by such person as an order In section 105(a)(1), in the proposed sub- ‘‘§3177.’’. to be executed, or required to be executed, on paragraph (E), insert ‘‘and report to the Of- Strike section 206 (and amend the table of or subject to the rules of a designated con- fice of Management and Budget’’ after ‘‘shall contents accordingly). tract market; or meet monthly’’. Strike section 244 (and amend the table of ‘‘(ii) to fill an order by offset against the In section 105(a)(1), in the proposed sub- contents accordingly). order or orders of any other person, or will- paragraph (E), insert ‘‘No Federal agency Strike section 245 (and amend the table of fully and knowingly and without the prior shall enter into a contract under this title contents accordingly). consent of such other person to become the unless the Office of Management and Budget In title III, after section 330, insert the fol- buyer in respect to any selling order of such has approved such contract.’’ after ‘‘con- lowing new section (and amend the table of other person, or become the seller in respect tracts are not exceeded.’’. contents accordingly): to any buying order of such other person, if In section 105, strike subsections (c), (d), SEC. 332. NATURAL GAS MARKET REFORM. such order is either represented by such per- (e), (f), and (g), and redesignate subsection (a) CLARIFICATION OF EXISTING CFTC AU- son as an order to be executed, or required to (h) as subsection (c). THORITY.— be executed, on or subject to the rules of a In section 133(b), in the proposed sub- designated contract market. section (f), strike ‘‘for suspended ceiling (1) FALSE REPORTING.—Section 9(a)(2) of the Commodity Exchange Act (7 U.S.C. ‘‘(b) Subsection (a)(2) shall not obligate fans,’’; and strike the last sentence. any person, in connection with a transaction In section 133(c), in the proposed sub- 13(a)(2)) is amended by striking ‘‘false or in a contract of sale of a commodity for fu- section (v), strike ‘‘SUSPENDED CEILING FANS, misleading or knowingly inaccurate reports’’ ture delivery, or other agreement, contract VENDING MACHINES,’’ and insert ‘‘VENDING and inserting ‘‘knowingly false or knowingly or transaction subject to section 5a(g) (1) and MACHINES’’ in the subsection heading. misleading or knowingly inaccurate re- (2) of this Act, with another person, to dis- In section 133(c), in the proposed sub- ports’’. close to such other person nonpublic infor- section (v), strike ‘‘suspended ceiling fans, (2) COMMISSION ADMINISTRATIVE AND CIVIL mation that may be material to the market refrigerated bottled or canned beverage AUTHORITY.—Section 9 of the Commodity Ex- price of such commodity or transaction, ex- vending machines,’’ and insert ‘‘refrigerated change Act (7 U.S.C. 13) is amended by redes- cept as necessary to make any statement bottled or canned beverage vending ma- ignating subsection (f) as subsection (e), and made to such other person in connection chines’’. adding: In section 136, strike ‘‘Section 327’’ and in- ‘‘(f) COMMISSION ADMINISTRATIVE AND CIVIL with such transaction, not misleading in any sert ‘‘Effective 3 years after the date of en- AUTHORITY.—The Commission may bring ad- material respect.’’. actment of this Act, section 327’’. ministrative or civil actions as provided in (c) JURISDICTION OF THE CFTC.—The Nat- In section 136, redesignate the proposed this Act against any person for a violation of ural Gas Act (15 U.S.C. 717 et seq.) is amend- subsection (h) as subsection (i). any provision of this section including, but ed by adding at the end: In section 136, in the proposed subsection not limited to, false reporting under sub- ‘‘SEC. 26. JURISDICTION. (i)(1) (as so redesignated by the preceding section (a)(2).’’. ‘‘This Act shall not affect the exclusive ju- amendment), strike ‘‘or revised’’ both places (3) EFFECT OF AMENDMENTS.—The amend- risdiction of the Commodity Futures Trad- it appears. ments made by paragraphs (1) and (2) re- ing Commission with respect to accounts,

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00169 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.069 H20PT1 H2322 CONGRESSIONAL RECORD — HOUSE April 20, 2005 agreements, contracts, or transactions in (B) while taking into account all aircraft idling of heavy-duty vehicles and other vehi- commodities under the Commodity Ex- emissions and the impact of those emissions cles and engines; and change Act (7 U.S.C. 1 et seq.). Any request on the human health. (ii) update those models as the Adminis- for information by the Commission to a des- (d) RISK ASSESSMENTS.—Any assessment of trator determines to be appropriate; and ignated contract market, registered deriva- risk to human health and the environment (B)(i) commence a review of the emission tives transaction execution facility, board of prepared by the Administrator of the Federal reductions achieved by the use of idle reduc- trade, exchange, or market involving ac- Aviation Administration or the Adminis- tion technology; and counts, agreements, contracts, or trans- trator of the Environmental Protection (ii) complete such revisions of the regula- actions in commodities (including natural Agency to support the report in this section tions and guidance of the Environmental gas, electricity, and other energy commod- shall be based on sound and objective sci- Protection Agency as the Administrator de- ities) within the exclusive jurisdiction of the entific practices, shall consider the best termines to be appropriate. Commodity Futures Trading Commission available science, and shall present the (2) DEADLINE FOR COMPLETION.—Not later shall be directed to the Commodity Futures weight of the scientific evidence concerning than 180 days after the date of enactment of Trading Commission, which shall cooperate such risks. this Act, the Administrator shall— in responding to any information request by In title VII, amend section 756 to read as (A) complete the reviews under subpara- the Commission.’’. follows: graphs (A)(i) and (B)(i) of paragraph (1); and (B) prepare and make publicly available 1 (d) INCREASED PENALTIES.—Section 21 of SEC. 756. REDUCTION OF ENGINE IDLING OF the Natural Gas Act (15 U.S.C. 717t) is HEAVY-DUTY VEHICLES. or more reports on the results of the reviews. (3) DISCRETIONARY INCLUSIONS.—The re- amended— (a) DEFINITIONS.—In this section: views under subparagraphs (A)(i) and (B)(i) of (1) in subsection (a)— (1) ADMINISTRATOR.—The term ‘‘Adminis- paragraph (1) and the reports under para- (A) by striking ‘‘$5,000’’ and inserting trator’’ means the Administrator of the En- graph (2)(B) may address the potential fuel ‘‘$1,000,000’’; and vironmental Protection Agency. savings resulting from use of idle reduction (B) by striking ‘‘two years’’ and inserting (2) ADVANCED TRUCK STOP ELECTRIFICATION technology. ‘‘5 years’’; and SYSTEM.—The term ‘‘advanced truck stop (4) IDLE REDUCTION AND ENERGY CONSERVA- (2) in subsection (b), by striking ‘‘$500’’ and electrification system’’ means a stationary TION DEPLOYMENT PROGRAM.— inserting ‘‘$50,000’’. system that delivers heat, air conditioning, (A) ESTABLISHMENT.— In section 441(a), in the proposed section electricity, or communications, and is capa- 3105(b)(1), insert ‘‘or equal to’’ after (i) IN GENERAL.—Not later than 90 days ble of providing verifiable and auditable evi- after the date of enactment of this Act, the ‘‘projects less than’’. dence of use of those services, to a heavy- In section 640, strike ‘‘Section 3110’’ and in- Administrator, in consultation with the Sec- duty vehicle and any occupants of the heavy- sert ‘‘Section 3110(a)’’. retary of Transportation shall, through the In section 640, in the proposed paragraph duty vehicle with or without relying on com- Environmental Protection Agency’s (8), strike ‘‘Not later than’’ and insert ‘‘To ponents mounted onboard the heavy-duty ve- SmartWay Transport Partnership, establish the extent appropriations are provided in ad- hicle for delivery of those services. a program to support deployment of idle re- vance for this purpose or are otherwise avail- (3) AUXILIARY POWER UNIT.—The term ‘‘aux- duction and energy conservation tech- able, not later than’’. iliary power unit’’ means an integrated sys- nologies . In section 663, at the beginning of the tem that— (ii) PRIORITY.—The Administrator shall quoted material, strike ‘‘(z)’’ and insert ‘‘z.’’. (A) provides heat, air conditioning, engine give priority to the deployment of idle re- In section 663, in the proposed subsection warming, or electricity to components on a duction and energy conservation tech- z.(1), strike ‘‘section 922(o), (v), and (w)’’ and heavy-duty vehicle; and nologies based on the costs and beneficial ef- insert ‘‘section 922(a)(4) and (o)’’. (B) is certified by the Administrator under fects on air quality and ability to lessen the In section 663, in the proposed subsection part 89 of title 40, Code of Federal Regula- emission of criteria air pollutants. z.(2)(A), strike ‘‘, (o), (v), and (w)’’ and insert tions (or any successor regulation), as meet- (B) FUNDING.— ‘‘and (o)’’. ing applicable emission standards. (i) AUTHORIZATION OF APPROPRIATIONS.— In section 722(b)(1)(B), strike ‘‘, scooters,’’. (4) HEAVY-DUTY VEHICLE.—The term There are authorized to be appropriated to In title VII, amend section 753 to read as ‘‘heavy-duty vehicle’’ means a vehicle that— the Administrator to carry out subparagraph follows: (A) has a gross vehicle weight rating great- (A) $19,500,000 for fiscal year 2006, $30,000,000 SEC. 753. AVIATION FUEL CONSERVATION AND er than 8,500 pounds; and for fiscal year 2007, and $45,000,000 for fiscal EMISSIONS. (B) is powered by a diesel engine. year 2008. (a) IN GENERAL.—Not later than 60 days (5) IDLE REDUCTION TECHNOLOGY.—The term (ii) COST SHARING.—Subject to clause (iii), after the date of enactment of this Act, the ‘‘idle reduction technology’’ means an ad- the Administrator shall require at least 50 Administrator of the Federal Aviation Ad- vanced truck stop electrification system, percent of the costs directly and specifically ministration and the Administrator of the auxiliary power unit, or other device or sys- related to any project under this section to Environmental Protection Agency shall tem of devices that— be provided from non-Federal sources. jointly initiate a study to identify— (A) is used to reduce long-duration idling (iii) NECESSARY AND APPROPRIATE REDUC- (1) the impact of aircraft emissions on air of a heavy-duty vehicle; and TIONS.—The Administrator may reduce the quality in nonattainment areas; (B) allows for the main drive engine or non-Federal requirement under clause (ii) if (2) ways to promote fuel conservation auxiliary refrigeration engine of a heavy- the Administrator determines that the re- measures for aviation to enhance fuel effi- duty vehicle to be shut down. duction is necessary and appropriate to meet ciency and reduce emissions; and (6) ENERGY CONSERVATION TECHNOLOGY.— the objectives of this section. (3) opportunities to reduce air traffic inef- the term ‘‘energy conservation technology’’ (5) IDLING LOCATION STUDY.— ficiencies that increase fuel burn and emis- means any device, system of devices, or (A) IN GENERAL.—Not later than 90 days sions. equipment that improves the fuel economy after the date of enactment of this Act, the (b) FOCUS.—The study under subsection (a) of a heavy-duty vehicle. Administrator, in consultation with the Sec- shall focus on how air traffic management (7) LONG-DURATION IDLING.— retary of Transportation, shall commence a inefficiencies, such as aircraft idling at air- (A) IN GENERAL.—The term ‘‘long-duration study to analyze all locations at which ports, result in unnecessary fuel burn and air idling’’ means the operation of a main drive heavy-duty vehicles stop for long-duration emissions. engine or auxiliary refrigeration engine of a idling, including— (c) REPORT.—Not later than 1 year after heavy-duty vehicle, for a period greater than (i) truck stops; the date of the initiation of the study under 15 consecutive minutes, at a time at which (ii) rest areas; subsection (a), the Administrator of the Fed- the main drive engine is not engaged in gear. (iii) border crossings; eral Aviation Administration and the Ad- (B) EXCLUSIONS.—The term ‘‘long-duration (iv) ports; ministrator of the Environmental Protection idling’’ does not include the operation of a (v) transfer facilities; and Agency shall jointly submit to the Com- main drive engine or auxiliary refrigeration (vi) private terminals. mittee on Energy and Commerce and the engine of a heavy-duty vehicle during a rou- (B) DEADLINE FOR COMPLETION.—Not later Committee on Transportation and Infra- tine stoppage associated with traffic move- than 180 days after the date of enactment of structure of the House of Representatives ment or congestion. this Act, the Administrator shall— and the Committee on Environment and (b) IDLE REDUCTION TECHNOLOGY BENEFITS, (i) complete the study under subparagraph Public Works and the Committee on Com- PROGRAMS, AND STUDIES.— (A); and merce, Science, and Transportation of the (1) IN GENERAL.—Not later than 90 days (ii) prepare and make publicly available 1 Senate a report that— after the date of enactment of this Act, the or more reports of the results of the study. (1) describes the results of the study; and Administrator shall— (c) VEHICLE WEIGHT EXEMPTION.—Section (2) includes any recommendations on ways (A)(i) commence a review of the mobile 127(a) of title 23, United States Code, is in which unnecessary fuel use and emissions source air emission models of the Environ- amended— affecting air quality may be reduced— mental Protection Agency used under the (1) by designating the first through elev- (A) without adversely affecting safety and Clean Air Act (42 U.S.C. 7401 et seq.) to deter- enth sentences as paragraphs (1) through security and increasing individual aircraft mine whether the models accurately reflect (11), respectively; and noise; and the emissions resulting from long-duration (2) by adding at the end the following:

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00170 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.036 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2323

‘‘(12) HEAVY DUTY VEHICLES.— SEC. 968B. WESTERN HEMISPHERE ENERGY CO- codes to ensure transportation and building ‘‘(A) IN GENERAL.—Subject to subpara- OPERATION. safety and efficient energy use when con- graphs (B) and (C), in order to promote re- (a) PROGRAM.—The Secretary shall carry structing, using, and occupying such infra- duction of fuel use and emissions because of out a program to promote cooperation on en- structure in the Arctic region. engine idling, the maximum gross vehicle ergy issues with Western Hemisphere coun- (c) OBJECTIVES.—The Center shall carry weight limit and the axle weight limit for tries. out— any heavy-duty vehicle equipped with an idle (b) ACTIVITIES.—Under the program, the (1) basic and applied research in the sub- reduction technology shall be increased by a Secretary shall fund activities to work with jects described in subsection (b), the prod- quantity necessary to compensate for the ad- Western Hemisphere countries to— ucts of which shall be judged by peers or ditional weight of the idle reduction system. (1) assist the countries in formulating and other experts in the field to advance the adopting changes in economic policies and ‘‘(B) MAXIMUM WEIGHT INCREASE.—The body of knowledge in road, bridge, rail, and weight increase under subparagraph (A) shall other policies to— infrastructure engineering in the Arctic re- be not greater than 400 pounds. (A) increase the production of energy sup- gion; and plies; and ‘‘(C) PROOF.—On request by a regulatory (2) an ongoing program of technology agency or law enforcement agency, the vehi- (B) improve energy efficiency; and transfer that makes research results avail- cle operator shall provide proof (through (2) assist in the development and transfer able to potential users in a form that can be demonstration or certification) that— of energy supply and efficiency technologies implemented. ‘‘(i) the idle reduction technology is fully that would have a beneficial impact on world (d) AMOUNT OF GRANT.—For each of fiscal functional at all times; and energy markets. years 2006 through 2011, the Secretary shall (c) UNIVERSITY PARTICIPATION.—To the ex- ‘‘(ii) the 400-pound gross weight increase is provide a grant in the amount of $3,000,000 to tent practicable, the Secretary shall carry not used for any purpose other than the use the institution specified in subsection (a) to out the program under this section with the of idle reduction technology described in carry out this section. participation of universities so as to take ad- subparagraph (A).’’. (e) AUTHORIZATION OF APPROPRIATIONS.— vantage of the acceptance of universities by (d) REPORT.—Not later than 60 days after There are authorized to be appropriated to the date on which funds are initially award- Western Hemisphere countries as sources of carry out this section $3,000,000 for each of ed under this section, and on an annual basis unbiased technical and policy expertise when fiscal years 2006 through 2011. thereafter, the Administrator shall submit assisting the Secretary in— (1) evaluating new technologies; SEC. 968D. BARROW GEOPHYSICAL RESEARCH to Congress a report containing— FACILITY. (2) resolving technical issues; (1) an identification of the grant recipi- (a) ESTABLISHMENT.—The Secretary of (3) working with those countries in the de- ents, a description of the projects to be fund- Commerce, in consultation with the Secre- velopment of new policies; and ed and the amount of funding provided; and taries of Energy and the Interior, the Direc- (4) training policymakers, particularly in (2) an identification of all other applicants tor of the National Science Foundation, and the case of universities that involve the par- that submitted applications under the pro- the Administrator of the Environmental ticipation of minority students, such as His- gram. Protection Agency, shall establish a joint re- panic-serving institutions and Historically In title VIII, after section 810, insert the search facility in Barrow, Alaska, to be Black Colleges and Universities. following and make the necessary con- known as the ‘‘Barrow Geophysical Research forming changes in the table of contents: (d) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to Facility’’, to support scientific research ac- SEC. 811. HYDROGEN FUEL CELL BUSES. tivities in the Arctic. The Secretary of Energy, through the ad- carry out this section— (1) $8,000,000 for fiscal year 2006; (b) AUTHORIZATION OF APPROPRIATIONS.— vanced vehicle technologies program, in co- There are authorized to be appropriated to ordination with the Secretary of Transpor- (2) $10,000,000 for fiscal year 2007; (3) $13,000,000 for fiscal year 2008; the Secretaries of Commerce, Energy, and tation, shall advance the development of fuel the Interior, the Director of the National cell bus technologies by providing funding (4) $16,000,000 for fiscal year 2009; and (5) $19,000,000 for fiscal year 2010. Science Foundation, and the Administrator for 4 demonstration sites that— of the Environmental Protection Agency for SEC. 968C. ARCTIC ENGINEERING RESEARCH (1) have or will soon have hydrogen infra- the planning, design, construction, and sup- structure for fuel cell bus operation; and CENTER. (a) IN GENERAL.—The Secretary of Energy port of the Barrow Geophysical Research Fa- (2) are operated by entities with experience cility $61,000,000. in the development of fuel cell bus tech- (referred to in this section as the ‘‘Sec- retary’’) in consultation with the Secretary In section 970(d), amend paragraph (3) to nologies, to enable the widespread utiliza- read as follows: tion of fuel cell buses. of Transportation and the United States Arc- tic Research Commission shall provide an- (3) REQUIREMENT OF SECTION 501(c)(3) STA- Such demonstrations shall address the reli- nual grants to a university located adjacent TUS.—The Secretary shall not select a con- ability of fuel cell heavy-duty vehicles, ex- to the Arctic Energy Office of the Depart- sortium under this section unless such con- pense, infrastructure, containment, storage, ment of Energy, to establish and operate a sortium is an organization described in sec- safety, training, and other issues. university research center to be tion 501(c)(3) of the Internal Revenue Code of In title IX, subtitle F, chapter 1, add at the 1986 and exempt from tax under such section end the following new sections: headquartered in Fairbanks and to be known as the ‘‘Arctic Engineering Research Center’’ 501(a) of such Code. SEC. 968A. WESTERN MICHIGAN DEMONSTRA- In section 1236, adding a new section 217 to TION PROJECT. (referred to in this section as the ‘‘Center’’). (b) PURPOSE.—The purpose of the Center the Federal Power Act, insert a period before The Administrator of the Environmental the final closing quotation marks. Protection Agency, in consultation with the shall be to conduct research on, and develop improved methods of, construction and use In section 1252(a) and in section 1252(b), State of Michigan and affected local offi- strike ‘‘Public Utilities’’ and insert ‘‘Public cials, shall conduct a demonstration project of materials to improve the overall perform- ance of roads, bridges, residential, commer- Utility’’. to address the effect of transported ozone In section 1254(b)(1), in the amendment to and ozone precursors in Southwestern Michi- cial, and industrial structures, and other in- frastructure in the Arctic region, with an section 112(b) of the Public Utility Regu- gan. The demonstration program shall ad- latory Policies Act of 1978, strike ‘‘(3)(A)’’ dress projected nonattainment areas in emphasis on developing— and insert ‘‘(5)(A)’’. Southwestern Michigan that include coun- (1) new construction techniques for roads, In section 1254(b)(2), strike ‘‘112(d) f’’ and ties with design values for ozone of less than bridges, rail, and related transportation in- insert ‘‘112(d) of’’. .095 based on years 2000 to 2002 or the most frastructure and residential, commercial, In title XII, in section 1274(a), after ‘‘for’’ current 3-year period of air quality data. The and industrial infrastructure that are capa- strike ‘‘section’’ and insert ‘‘sections 1269 Administrator shall assess any difficulties ble of withstanding the Arctic environment (relating to effect on other regulations), 1270 such areas may experience in meeting the 8 and using limited energy resources as effi- (relating to enforcement), 1271 (relating to hour national ambient air quality standard ciently as possible; savings provisions), and’’. for ozone due to the effect of transported (2) technologies and procedures for increas- In title XII, amend section 1298 to read as ozone or ozone precursors into the areas. The ing road, bridge, rail, and related transpor- follows: Administrator shall work with State and tation infrastructure and residential, com- local officials to determine the extent of mercial, and industrial infrastructure safety, SEC. 1298. ECONOMIC DISPATCH. ozone and ozone precursor transport, to as- reliability, and integrity in the Arctic re- Part II of the Federal Power Act (16 U.S.C. sess alternatives to achieve compliance with gion; 824 et seq.) is amended by adding at the end the 8 hour standard apart from local con- (3) new materials and improving the per- the following: trols, and to determine the timeframe in formance and energy efficiency of existing ‘‘SEC. 223. JOINT BOARDS ON ECONOMIC DIS- which such compliance could take place. The materials for the construction of roads, PATCH. Administrator shall complete this dem- bridges, rail, and related transportation in- ‘‘(a) IN GENERAL.—The Commission shall onstration project no later than 2 years after frastructure and residential, commercial, convene joint boards on a regional basis pur- the date of enactment of this section and and industrial infrastructure in the Arctic suant to section 209 of this Act to study the shall not impose any requirement or sanc- region; and issue of security constrained economic dis- tion that might otherwise apply during the (4) recommendations for new local, re- patch for the various market regions. The pendency of the demonstration project. gional, and State permitting and building Commission shall designate the appropriate

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00171 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.036 H20PT1 H2324 CONGRESSIONAL RECORD — HOUSE April 20, 2005 regions to be covered by each such joint act and shall endeavor to avoid duplication Madam Chairman, we again try to board for purposes of this section. of effort with regard to such studies. cap the energy savings performance ‘‘(b) MEMBERSHIP.—The Commission shall In section 1541(c)(4) (as redesignated by the contracts at $500 million. We disagree request each State to nominate a representa- preceding amendment), strike the sentence tive for the appropriate regional joint board, beginning with ‘‘The Administrator shall use these provisions should score. Like and shall designate a member of the Com- sound’’. many, we have voiced our opposition to mission to chair and participate as a member In the heading of title XVII, insert ‘‘—RE- this score, but we are concerned about of each such board. SOURCES’’ at the end (and amend the table the cost of the bill, so we are trying ‘‘(c) POWERS.—The sole authority of each of contents accordingly). again to cap its cost. We also tried to joint board convened under this section shall In the heading of title XIX, insert ‘‘—RE- avoid a $64 million score on our em- be to consider issues relevant to what con- SOURCES’’ at the end (and amend the table of contents accordingly). ployee benefits amendment we adopted stitutes ‘security constrained economic dis- in committee. patch’ and how such a mode of operating an Strike section 2026 (and amend the table of electric energy system affects or enhances contents accordingly). Some of our other changes include the reliability and affordability of service to In the heading of title XXI, insert ‘‘—RE- clarifying that the 3-year time period customers in the region concerned and to SOURCES’’ at the end (and amend the table in which the Federal Government must make recommendations to the Commission of contents accordingly). establish energy efficiency standards Redesignate title XXV as title XXIV, and regarding such issues. redesignate sections 2501 through 2506 as sec- on certain products be prospective ‘‘(d) REPORT TO THE CONGRESS.—Within one tions 2401 through 2406, respectively (and only. Like we did in the bill of the last year after enactment of this section, the Congress, we moved the photovoltaic Commission shall issue a report and submit amend the table of contents accordingly). Redesignate section 2601 as section 2055, program from DOE to GSA. such report to the Congress regarding the and move it to the end of subtitle D of title recommendations of the joint boards under We added back into the bill some of XX. this section and the Commission may con- the provisions contained in our H.R. 6 Redesignate section 2602 as section 112, and conference report of the last Congress. solidate the recommendations of more than move it to the end of subtitle A of title I. one such regional joint board, including any Strike the remainder of title XXVI. Several were in the research and devel- consensus recommendations for statutory or The CHAIRMAN. Pursuant to House opment title and include the Western regulatory reform.’’. Resolution 219, the gentleman from Michigan Demonstration Project, the In section 1443, in the amendment adding Texas (Mr. HALL) and a Member op- Western Hemisphere Energy Coopera- subsection (d) to section 181 of the Clean Air tion Project, the Arctic Engineering Act, in paragraph (4), strike ‘‘If, no more posed each will control 5 minutes. than 18 months prior to the date of enact- The Chair recognizes the gentleman Research Center, and the Barrow Geo- ment of this subsection’’ and insert ‘‘If, after from Texas (Mr. HALL). physical Research Facility. April 1, 2003’’ and strike ‘‘within 12 months Mr. HALL. Madam Chairman, I yield Madam Chairman, most importantly, after the date of enactment of this sub- myself such time as I may consume. we reinserted the natural gas market section’’. Madam Chairman, I offer a manager’s reform provision from the last Con- In title XIV, in section 1446, strike ‘‘as de- amendment which sets forth clearly all gress to ensure Enron trading practices fined under section 2(a)(1)(A)’’ and insert of the changes we are proposing to of the past are not repeated. We had to ‘‘identified under section 2(a)(1)(B)’’ and make in our comprehensive energy bill. drop this provision because the parlia- strike ‘‘2720(a)(1)(A)’’ and insert ‘‘2720(a)(1)(B)’’. We have listed all of the changes, rath- mentarians thought it could be subject In title XV, in section 1505(a), strike ‘‘The er than offer a substitute, so all Mem- to a point of order in our committee, so review shall be completed no later than May bers know which provisions we are we are putting it back in now. 31, 2014’’ and insert ‘‘The review shall com- changing. Our summary clearly ex- We have also added the aircraft mence after May 31, 2013, and shall be com- plains these changes. idling study, the engine idling pro- pleted no later than May 31, 2014’’. Madam Chairman, this amendment gram, and the hydrogen fuel bus pro- In section 1505(b), strike ‘‘No later’’ and in- makes some technical changes, adds a gram. If any Member has any concerns sert ‘‘After completion of the review under few provisions which were part of the about these provisions, I look forward subsection (a) and no later’’. In section 1510, in subparagraph (G) of sub- H.R. 6 conference report from last Con- to working with you through con- section (a)(2), after ‘‘vehicle emission sys- gress, and clarifies some of the provi- ference. We have added some non- tems,’’ insert ‘‘on-road and off-road diesel sions contained in this year’s bill. None controversial amendments through the rules,’’ and after ‘‘imposed by’’ insert ‘‘the of these provisions should be con- affordable housing energy efficiency Federal Government,’’. troversial. provisions. In section 1510(b)(1), strike ‘‘2007’’ and in- We make technical changes in the The other amendments are purely sert ‘‘2009’’. ceiling fan efficiency standards. We technical in nature, such as removing In title XV, in section 1530, in subsection clarify references to the firearm laws (a) adding a new subsection (i) to section 9003 duplicative provisions passed by other of the Solid Waste Disposal Act, strike sub- in the nuclear security provision, committees. paragraph (G) of paragraph (1) of such new which had referred to a law no longer Finally, Madam Chairman, I want to subsection (i) and insert a period at the end in existence. We clarified the tax sta- thank the gentleman from California of subsection (b). tus of the consortium under the (Mr. POMBO), chairman of the Com- In title XV, in section 1531, in the amend- ultradeep program. And we made clear mittee on Resources; the gentleman ment adding new section 9014 to the Solid the PUHCA provisions would not im- from California (Mr. THOMAS), chair- Waste Disposal Act, in paragraph (2)(C) pair FERC’s or State commissions’ man of the Committee on Ways and strike ‘‘9004(f)’’ and insert ‘‘9003(i), 9004(f),’’ and in paragraph (2)(D) strike ‘‘9011 and 9012’’ ability to enforce provisions and that Means; the gentleman from New York and insert ‘‘9010, 9011, 9012, and 9013’’. companies still must comply with ex- (Mr. BOEHLERT), chairman of the Com- In section 1541(c)(2), strike ‘‘preserves air isting orders during the period repeal mittee on Science; the gentleman from quality standards’’ and insert ‘‘addresses air becomes effective. Virginia (Mr. TOM DAVIS), chairman of quality requirements’’. We clarify dates in the NAS MTBE the Committee on Government Reform; In section 1541(c)(2), strike ‘‘that results’’ study, rulemaking and appropriation the gentleman from Alaska (Mr. and insert ‘‘including that which has re- authorization dates for the LUST pro- YOUNG), chairman of the Committee on sulted’’. gram, and clarified the bump-up dates. In section 1541(c), insert the following new Transportation and Infrastructure, and paragraph after paragraph (2) and redesig- We allowed our clean air coal projects their staffs, for helping us put together nate the following paragraphs accordingly: to be eligible to power plants of 600 MW this manager’s amendment; and I ask (3) CONDUCT OF STUDY.—In carrying out or less. We made technical changes to for its adoption. their joint duties under this section, the Ad- the boutique fuels studies and our ref- Madam Chairman, I reserve the bal- ministrator and the Secretary shall use erence to the soybean oil within the ance of my time. sound science and objective science prac- Edible Oil Act. We have also included Mr. MARKEY. Mr. Chairman, I claim tices, shall consider the best available the on road and off-road diesel rules in the time in opposition, and I yield my- science, shall use data collected by accepted the fuel harmonization study. We also means and shall consider and include a de- self 3 minutes. scription of the weight of the scientific evi- clarified that FERC would have a role Madam Chairman, I rise in opposi- dence. The Administrator and the Secretary to play with the regional boards we es- tion to the Barton manager’s amend- shall coordinate the study required by this tablished to set guidelines for efficient, ment. I have a number of concerns section with other studies required by the economic dispatch of electric power. about the manager’s amendment.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00172 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.036 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2325 Let me just begin by saying that in- Mr. BARTON of Texas. Madam Chair- spew it into the atmosphere. Well, that side of the bill there was a provision man, I do not think it is a surprise that is going to be breathed in, all that mer- that I authored in the Committee on I rise in strong support of the Barton cury, all that sulfur and nitrous oxide, Energy and Commerce that was accept- manager’s amendment, since I am the and it is going to have a dramatically ed by the Chair, by the majority. And Barton who authored the amendment. negative impact upon the health of our then, without any consultation with But I just want to tell my good friend country. me, this amendment has been taken from Massachusetts, whom I just lis- My colleagues, this is a bad amend- out of the energy bill by the manager’s tened to extremely closely as he told ment, and I really regret it is out here amendment which is being proposed his tale of woe about his amendment and that my friend has proposed it. here today. being accepted in committee and not The CHAIRMAN. All time has ex- Let me tell you a little bit about the accepted in the manager’s amendment, pired. The question is on the amend- change they are going to make without we found out, as we went to implement ment offered by the gentleman from any consultation with me. it, that there were some things we did Texas (Mr. HALL). Now, when you think of all the pollu- not understand about his amendment. The amendment was agreed to. tion that comes out of smokestacks, Now, I am sure the gentleman ex- The CHAIRMAN. It is now in order to that is created by the generation of plained it clearly and concisely, and I consider amendment No. 2 printed in electricity from coal-fired plants or was probably listening to one of my House Report 109–49. from gas-fired plants to create elec- staffers and probably just did not hear AMENDMENT NO. 2 OFFERED BY MR. DINGELL tricity, well, that electricity is being his explanation, but it was actually Mr. DINGELL. Mr. Chairman, I offer created in order, for the most part, to retroactive in application. an amendment. keep our lights on, our air-conditioning Madam Chairman, had we accepted it The CHAIRMAN. The Clerk will des- on, to make sure that we can live in a and put it in the manager’s amend- ignate the amendment. modern society. ment, there would have been an imme- The text of the amendment is as fol- Now, at the Department of Energy, in diate outcry to implement some stand- lows: the first 5 years of the Bush adminis- ards that were not yet implementable Amendment No. 2 offered by Mr. DINGELL: tration, they have yet to have a new because it would have been retroactive. Title XII of H.R. 6 is amended by striking rulemaking that would improve the ef- That is the primary reason it is not in sections 1201 through 1235 and sections 1237 ficiency of any of these appliances. the manager’s amendment. through 1298, by striking the title heading, Now, the cumulative impact of that is As we go to conference, we will con- by inserting the following before title XIII, that we are going to see, unfortu- tinue to work with the distinguished by redesignating section 1236 (relating to na- tive load service obligation) as section 1233 nately, several hundred new coal-fired gentleman, and we probably can find or gas-fired generating plants con- of the following and inserting such redesig- some way to get some part of it in in nated section 1233 after section 1232 of the structed in America. the conference. But that is the primary Now, what does that mean? Well, in following, and by making the necessary con- reason that particular amendment is forming changes in the table of contents: addition to the cost to consumers who not in the manager’s amendment. are going to have to pay for these new TITLE XII—ELECTRICITY Mr. MARKEY. Madam Chairman, I SECTION 1201. SHORT TITLE. plants, you also have all of the addi- yield myself the balance of my time. tional pollution. We have 8 million This title may be cited as the ‘‘Electric Re- Here is the problem with the Bush liability Act of 2005’’. children with asthma. We have a rise in administration. The Congress, over the breast cancer and prostate cancer and Subtitle A—Reliability Standards years, has passed any number of regu- SEC. 1211. ELECTRIC RELIABILITY STANDARDS. other diseases. More than 50 percent of lations that deal with the issue of ap- all disease is environmentally based, (a) IN GENERAL.—Part II of the Federal pliance efficiency, but the Bush admin- coming from what we breathe, from the Power Act (16 U.S.C 824 et seq.) is amended istration is allergic to energy effi- water that we drink. by adding at the end the following: The majority, in its wisdom, has de- ciency. It just wants to put a big new ‘‘SEC. 215. ELECTRIC RELIABILITY. cided they are going to impose no bur- gas station on top of the Arctic wilder- ‘‘(a) DEFINITIONS.—For purposes of this sec- tion: dens on anyone who makes any appli- ness or on top of any other pristine area in our country rather than look- ‘‘(1) The term ‘bulk-power system’ means— ances in America, so they have to im- ‘‘(A) facilities and control systems nec- prove their efficiency, which is very ing at the technological genius of our country to find some way of improving essary for operating an interconnected elec- typical of the entire Bush administra- tric energy transmission network (or any tion’s approach to these technologies. our efficiency. portion thereof); and But the impact of having all of these So even with regard to new standards ‘‘(B) electric energy from generation facili- window air conditioners, furnaces, in this manager’s amendment, they ties needed to maintain transmission system lighting fixtures, heat pumps, 3 years give this administration 6 years, 6 reliability. from now, 6 years from now, 10 years years, to come up with new standards, The term does not include facilities used in even as the Bush administration has the local distribution of electric energy. from now being just as inefficient as ‘‘(2) The terms ‘Electric Reliability Orga- they were 5 years ago is that all this not done anything for the first 5 years of its term of office at the height of an nization’ and ‘ERO’ mean the organization additional pollution has to go into the certified by the Commission under sub- air: the carbon, the mercury, the sul- energy crisis, knowing the consequence section (c) the purpose of which is to estab- fur, the nitrous oxide that is inhaled by of all of this pollution going into the lish and enforce reliability standards for the children in our country. And I just atmosphere in terms of its impact upon bulk-power system, subject to Commission think it is wrong, without any con- the health of our country. review. sultation with me, to take my amend- My colleagues, just so you know, ‘‘(3) The term ‘reliability standard’ means women in Japan contract breast cancer a requirement, approved by the Commission ment and put it in this manager’s under this section, to provide for reliable op- amendment, to have it deleted from at only one-fifth the rate of American women. Women in Japan contract eration of the bulk-power system. The term the bill. includes requirements for the operation of Madam Chairman, I reserve the bal- breast cancer at only one-fifth the rate existing bulk-power system facilities and the ance of my time. of American women. Women in Japan design of planned additions or modifications Mr. BARTON of Texas. Madam Chair- contract breast cancer at only one-fifth to such facilities to the extent necessary to man, how much time does the gen- the rate of American women. After the provide for reliable operation of the bulk- tleman from Texas (Mr. HALL) have? family comes to America from Japan, power system, but the term does not include The CHAIRMAN. The gentleman they contract it at the same rate as any requirement to enlarge such facilities or from Texas has 1 minute remaining. Americans. That means it is not in the to construct new transmission capacity or Mr. BARTON of Texas. Would the genes of the girls; it means it is in our generation capacity. ‘‘(4) The term ‘reliable operation’ means gentleman from Texas (Mr. HALL) yield air, it is in our water. operating the elements of the bulk-power to me 1 minute? What this amendment does is, it says system within equipment and electric sys- Mr. HALL. Madam Chairman, I yield we are just going to build a couple hun- tem thermal, voltage, and stability limits so 1 minute to the gentleman from Texas dred more large electrical generating that instability, uncontrolled separation, or (Mr. BARTON). plants, coal and natural gas, and just cascading failures of such system will not

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00173 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.107 H20PT1 H2326 CONGRESSIONAL RECORD — HOUSE April 20, 2005 occur as a result of a sudden disturbance or determines that the standard is just, reason- filed with the Commission. Application to unanticipated failure of system elements. able, not unduly discriminatory or pref- the Commission for review, or the initiation ‘‘(5) The term ‘Interconnection’ means a erential, and in the public interest. The of review by the Commission on its own mo- geographic area in which the operation of Commission shall give due weight to the tion, shall not operate as a stay of such pen- bulk-power system components is syn- technical expertise of the Electric Reli- alty unless the Commission otherwise orders chronized such that the failure of 1 or more ability Organization with respect to the con- upon its own motion or upon application by of such components may adversely affect the tent of a proposed standard or modification the user, owner or operator that is the sub- ability of the operators of other components to a reliability standard and to the technical ject of such penalty. In any proceeding to re- within the system to maintain reliable oper- expertise of a regional entity organized on view a penalty imposed under paragraph (1), ation of the facilities within their control. an Interconnection-wide basis with respect the Commission, after notice and oppor- ‘‘(6) The term ‘transmission organization’ to a reliability standard to be applicable tunity for hearing (which hearing may con- means a Regional Transmission Organiza- within that Interconnection, but shall not sist solely of the record before the ERO and tion, Independent System Operator, inde- defer with respect to the effect of a standard opportunity for the presentation of sup- pendent transmission provider, or other on competition. A proposed standard or porting reasons to affirm, modify, or set transmission organization finally approved modification shall take effect upon approval aside the penalty), shall by order affirm, set by the Commission for the operation of by the Commission. aside, reinstate, or modify the penalty, and, transmission facilities. ‘‘(3) The Electric Reliability Organization if appropriate, remand to the ERO for fur- ‘‘(7) The term ‘regional entity’ means an shall rebuttably presume that a proposal ther proceedings. The Commission shall im- entity having enforcement authority pursu- from a regional entity organized on an Inter- plement expedited procedures for such hear- ant to subsection (e)(4). connection-wide basis for a reliability stand- ings. ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) ard or modification to a reliability standard ‘‘(3) On its own motion or upon complaint, The Commission shall have jurisdiction, to be applicable on an Interconnection-wide the Commission may order compliance with within the United States, over the ERO cer- basis is just, reasonable, and not unduly dis- a reliability standard and may impose a pen- tified by the Commission under subsection criminatory or preferential, and in the pub- alty against a user or owner or operator of (c), any regional entities, and all users, own- lic interest. the bulk-power system if the Commission ers and operators of the bulk-power system, ‘‘(4) The Commission shall remand to the finds, after notice and opportunity for a including but not limited to the entities de- Electric Reliability Organization for further hearing, that the user or owner or operator scribed in section 201(f), for purposes of ap- consideration a proposed reliability standard of the bulk-power system has engaged or is proving reliability standards established or a modification to a reliability standard about to engage in any acts or practices that under this section and enforcing compliance that the Commission disapproves in whole or constitute or will constitute a violation of a with this section. All users, owners and oper- in part. reliability standard. ators of the bulk-power system shall comply ‘‘(5) The Commission, upon its own motion ‘‘(4) The Commission shall issue regula- with reliability standards that take effect or upon complaint, may order the Electric tions authorizing the ERO to enter into an under this section. Reliability Organization to submit to the agreement to delegate authority to a re- ‘‘(2) The Commission shall issue a final Commission a proposed reliability standard gional entity for the purpose of proposing re- rule to implement the requirements of this or a modification to a reliability standard liability standards to the ERO and enforcing section not later than 180 days after the date that addresses a specific matter if the Com- reliability standards under paragraph (1) if— of enactment of this section. mission considers such a new or modified re- ‘‘(A) the regional entity is governed by— ‘‘(c) CERTIFICATION.—Following the liability standard appropriate to carry out ‘‘(i) an independent board; issuance of a Commission rule under sub- this section. ‘‘(ii) a balanced stakeholder board; or section (b)(2), any person may submit an ap- ‘‘(6) The final rule adopted under sub- ‘‘(iii) a combination independent and bal- plication to the Commission for certification section (b)(2) shall include fair processes for anced stakeholder board. as the Electric Reliability Organization. The the identification and timely resolution of ‘‘(B) the regional entity otherwise satisfies Commission may certify 1 such ERO if the any conflict between a reliability standard the provisions of subsection (c)(1) and (2); Commission determines that such ERO— and any function, rule, order, tariff, rate and ‘‘(1) has the ability to develop and enforce, schedule, or agreement accepted, approved, ‘‘(C) the agreement promotes effective and subject to subsection (e)(2), reliability stand- or ordered by the Commission applicable to a efficient administration of bulk-power sys- ards that provide for an adequate level of re- transmission organization. Such trans- tem reliability. liability of the bulk-power system; and mission organization shall continue to com- The Commission may modify such delega- ‘‘(2) has established rules that— ply with such function, rule, order, tariff, tion. The ERO and the Commission shall ‘‘(A) assure its independence of the users rate schedule or agreement accepted ap- rebuttably presume that a proposal for dele- and owners and operators of the bulk-power proved, or ordered by the Commission until— gation to a regional entity organized on an system, while assuring fair stakeholder rep- ‘‘(A) the Commission finds a conflict exists Interconnection-wide basis promotes effec- resentation in the selection of its directors between a reliability standard and any such tive and efficient administration of bulk- and balanced decisionmaking in any ERO provision; power system reliability and should be ap- committee or subordinate organizational ‘‘(B) the Commission orders a change to proved. Such regulation may provide that structure; such provision pursuant to section 206 of this the Commission may assign the ERO’s au- ‘‘(B) allocate equitably reasonable dues, part; and thority to enforce reliability standards fees, and other charges among end users for ‘‘(C) the ordered change becomes effective under paragraph (1) directly to a regional en- all activities under this section; under this part. tity consistent with the requirements of this ‘‘(C) provide fair and impartial procedures If the Commission determines that a reli- paragraph. for enforcement of reliability standards ability standard needs to be changed as a re- ‘‘(5) The Commission may take such action through the imposition of penalties in ac- sult of such a conflict, it shall order the ERO as is necessary or appropriate against the cordance with subsection (e) (including limi- to develop and file with the Commission a ERO or a regional entity to ensure compli- tations on activities, functions, or oper- modified reliability standard under para- ance with a reliability standard or any Com- ations, or other appropriate sanctions); graph (4) or (5) of this subsection. mission order affecting the ERO or a re- ‘‘(D) provide for reasonable notice and op- ‘‘(e) ENFORCEMENT.—(1) The ERO may im- gional entity. portunity for public comment, due process, pose, subject to paragraph (2), a penalty on a ‘‘(6) Any penalty imposed under this sec- openness, and balance of interests in devel- user or owner or operator of the bulk-power tion shall bear a reasonable relation to the oping reliability standards and otherwise ex- system for a violation of a reliability stand- seriousness of the violation and shall take ercising its duties; and ard approved by the Commission under sub- into consideration the efforts of such user, ‘‘(E) provide for taking, after certification, section (d) if the ERO, after notice and an owner, or operator to remedy the violation appropriate steps to gain recognition in Can- opportunity for a hearing— in a timely manner. ada and Mexico. ‘‘(A) finds that the user or owner or oper- ‘‘(f) CHANGES IN ELECTRIC RELIABILITY OR- The total amount of all dues, fees, and other ator has violated a reliability standard ap- GANIZATION RULES.—The Electric Reliability charges collected by the ERO in each of the proved by the Commission under subsection Organization shall file with the Commission fiscal years 2006 through 2015 and allocated (d); and for approval any proposed rule or proposed under subparagraph (B) shall not exceed ‘‘(B) files notice and the record of the pro- rule change, accompanied by an explanation $50,000,000. ceeding with the Commission. of its basis and purpose. The Commission, ‘‘(d) RELIABILITY STANDARDS.—(1) The ‘‘(2) A penalty imposed under paragraph (1) upon its own motion or complaint, may pro- Electric Reliability Organization shall file may take effect not earlier than the 31st day pose a change to the rules of the ERO. A pro- each reliability standard or modification to after the ERO files with the Commission no- posed rule or proposed rule change shall take a reliability standard that it proposes to be tice of the penalty and the record of pro- effect upon a finding by the Commission, made effective under this section with the ceedings. Such penalty shall be subject to re- after notice and opportunity for comment, Commission. view by the Commission, on its own motion that the change is just, reasonable, not un- ‘‘(2) The Commission may approve, by rule or upon application by the user, owner or op- duly discriminatory or preferential, is in the or order, a proposed reliability standard or erator that is the subject of the penalty filed public interest, and satisfies the require- modification to a reliability standard if it within 30 days after the date such notice is ments of subsection (c).

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00174 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2327

‘‘(g) RELIABILITY REPORTS.—The ERO shall priated not more than $50,000,000 per year for ‘‘(2) is an entity described in section conduct periodic assessments of the reli- fiscal years 2006 through 2015 for all activi- 201(f).’’. ability and adequacy of the bulk-power sys- ties under the amendment made by sub- SEC. 1232. FEDERAL UTILITY PARTICIPATION IN tem in North America. section (a). REGIONAL TRANSMISSION ORGANI- ‘‘(h) COORDINATION WITH CANADA AND MEX- Subtitle B—Transmission Operation ZATIONS. ICO.—The President is urged to negotiate Improvements (a) DEFINITIONS.—For purposes of this sec- tion— international agreements with the govern- SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. (1) APPROPRIATE FEDERAL REGULATORY AU- ments of Canada and Mexico to provide for Part II of the Federal Power Act (16 U.S.C. THORITY.—The term ‘‘appropriate Federal effective compliance with reliability stand- 824 et seq.) is amended by inserting after sec- ards and the effectiveness of the ERO in the tion 211 the following new section: regulatory authority’’ means— (A) with respect to a Federal power mar- United States and Canada or Mexico. ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO TRANSMITTING UTILITIES. keting agency (as defined in the Federal shall have authority to develop and enforce ‘‘(a) TRANSMISSION SERVICES.—Subject to Power Act), the Secretary of Energy, except compliance with reliability standards for section 212(h), the Commission may, by rule that the Secretary may designate the Ad- only the bulk-power system. or order, require an unregulated transmit- ministrator of a Federal power marketing ‘‘(2) This section does not authorize the ting utility to provide transmission serv- agency to act as the appropriate Federal reg- ERO or the Commission to order the con- ices— ulatory authority with respect to the trans- struction of additional generation or trans- ‘‘(1) at rates that are comparable to those mission system of that Federal power mar- mission capacity or to set and enforce com- that the unregulated transmitting utility keting agency; and pliance with standards for adequacy or safe- charges itself; and (B) with respect to the Tennessee Valley ty of electric facilities or services. ‘‘(2) on terms and conditions (not relating Authority, the Board of Directors of the Ten- ‘‘(3) Nothing in this section shall be con- to rates) that are comparable to those under nessee Valley Authority. strued to preempt any authority of any which such unregulated transmitting utility (2) FEDERAL UTILITY.—The term ‘‘Federal State to take action to ensure the safety, provides transmission services to itself and utility’’ means a Federal power marketing adequacy, and reliability of electric service that are not unduly discriminatory or pref- agency or the Tennessee Valley Authority. within that State, as long as such action is erential. (3) TRANSMISSION SYSTEM.—The term not inconsistent with any reliability stand- ‘‘(b) EXEMPTION.—The Commission shall ‘‘transmission system’’ means electric trans- ard, except that the State of New York may exempt from any rule or order under this mission facilities owned, leased, or con- establish rules that result in greater reli- section any unregulated transmitting utility tracted for by the United States and oper- ability within that State, as long as such ac- that— ated by a Federal utility. tion does not result in lesser reliability out- ‘‘(1) sells no more than 4,000,000 megawatt (b) TRANSFER.—The appropriate Federal side the State than that provided by the reli- hours of electricity per year; or regulatory authority is authorized to enter ability standards.. ‘‘(2) does not own or operate any trans- into a contract, agreement or other arrange- ‘‘(4) Within 90 days of the application of mission facilities that are necessary for op- ment transferring control and use of all or the Electric Reliability Organization or erating an interconnected transmission sys- part of the Federal utility’s transmission other affected party, and after notice and op- tem (or any portion thereof); or system to an RTO or ISO (as defined in the portunity for comment, the Commission ‘‘(3) meets other criteria the Commission Federal Power Act), approved by the Federal shall issue a final order determining whether determines to be in the public interest. Energy Regulatory Commission. Such con- a State action is inconsistent with a reli- ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The tract, agreement or arrangement shall in- ability standard, taking into consideration requirements of subsection (a) shall not clude— any recommendation of the ERO. apply to facilities used in local distribution. (1) performance standards for operation ‘‘(5) The Commission, after consultation ‘‘(d) EXEMPTION TERMINATION.—Whenever and use of the transmission system that the with the ERO and the State taking action, the Commission, after an evidentiary hear- head of the Federal utility determines nec- may stay the effectiveness of any State ac- ing held upon a complaint and after giving essary or appropriate, including standards tion, pending the Commission’s issuance of a consideration to reliability standards estab- that assure recovery of all the Federal util- final order. lished under section 215, finds on the basis of ity’s costs and expenses related to the trans- ‘‘(j) REGIONAL ADVISORY BODIES.—The a preponderance of the evidence that any ex- mission facilities that are the subject of the Commission shall establish a regional advi- emption granted pursuant to subsection (b) contract, agreement or other arrangement; sory body on the petition of at least 2⁄3 of the unreasonably impairs the continued reli- consistency with existing contracts and States within a region that have more than ability of an interconnected transmission third-party financing arrangements; and 1⁄2 of their electric load served within the re- system, it shall revoke the exemption grant- consistency with said Federal utility’s statu- gion. A regional advisory body shall be com- ed to that transmitting utility. tory authorities, obligations, and limita- posed of 1 member from each participating ‘‘(e) APPLICATION TO UNREGULATED TRANS- tions; State in the region, appointed by the Gov- MITTING UTILITIES.—The rate changing proce- (2) provisions for monitoring and oversight ernor of each State, and may include rep- dures applicable to public utilities under by the Federal utility of the RTO’s or ISO’s resentatives of agencies, States, and prov- subsections (c) and (d) of section 205 are ap- fulfillment of the terms and conditions of inces outside the United States. A regional plicable to unregulated transmitting utili- the contract, agreement or other arrange- ties for purposes of this section. advisory body may provide advice to the ment, including a provision for the resolu- ‘‘(f) REMAND.—In exercising its authority Electric Reliability Organization, a regional under paragraph (1) of subsection (a), the tion of disputes through arbitration or other entity, or the Commission regarding the gov- Commission may remand transmission rates means with the regional transmission orga- ernance of an existing or proposed regional to an unregulated transmitting utility for nization or with other participants, notwith- entity within the same region, whether a review and revision where necessary to meet standing the obligations and limitations of standard proposed to apply within the region the requirements of subsection (a). any other law regarding arbitration; and is just, reasonable, not unduly discrimina- ‘‘(g) OTHER REQUESTS.—The provision of (3) a provision that allows the Federal util- tory or preferential, and in the public inter- transmission services under subsection (a) ity to withdraw from the RTO or ISO and est, whether fees proposed to be assessed does not preclude a request for transmission terminate the contract, agreement or other within the region are just, reasonable, not services under section 211. arrangement in accordance with its terms. unduly discriminatory or preferential, and in ‘‘(h) LIMITATION.—The Commission may Neither this section, actions taken pursuant the public interest and any other responsibil- not require a State or municipality to take to it, nor any other transaction of a Federal ities requested by the Commission. The Com- action under this section that would violate utility using an RTO or ISO shall confer mission may give deference to the advice of a private activity bond rule for purposes of upon the Federal Energy Regulatory Com- any such regional advisory body if that body section 141 of the Internal Revenue Code of mission jurisdiction or authority over the is organized on an Interconnection-wide 1986 (26 U.S.C. 141). Federal utility’s electric generation assets, basis. ‘‘(i) TRANSFER OF CONTROL OF TRANSMIT- electric capacity or energy that the Federal ‘‘(k) ALASKA AND HAWAII.—The provisions TING FACILITIES.—Nothing in this section au- utility is authorized by law to market, or of this section do not apply to Alaska or Ha- thorizes the Commission to require an un- the Federal utility’s power sales activities. waii.’’. regulated transmitting utility to transfer (c) EXISTING STATUTORY AND OTHER OBLI- (b) STATUS OF ERO.—The Electric Reli- control or operational control of its trans- GATIONS.— ability Organization certified by the Federal mitting facilities to an RTO or any other (1) SYSTEM OPERATION REQUIREMENTS.—No Energy Regulatory Commission under sec- Commission-approved independent trans- statutory provision requiring or authorizing tion 215(c) of the Federal Power Act and any mission organization designated to provide a Federal utility to transmit electric power regional entity delegated enforcement au- nondiscriminatory transmission access. or to construct, operate or maintain its thority pursuant to section 215(e)(4) of that ‘‘(j) DEFINITION.—For purposes of this sec- transmission system shall be construed to Act are not departments, agencies, or instru- tion, the term ‘unregulated transmitting prohibit a transfer of control and use of its mentalities of the United States Govern- utility’ means an entity that— transmission system pursuant to, and sub- ment. ‘‘(1) owns or operates facilities used for the ject to all requirements of subsection (b). (c) LIMITATION ON ANNUAL APPROPRIA- transmission of electric energy in interstate (2) OTHER OBLIGATIONS.—This subsection TIONS.—There is authorized to be appro- commerce; and shall not be construed to—

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00175 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 H2328 CONGRESSIONAL RECORD — HOUSE April 20, 2005 (A) suspend, or exempt any Federal utility the standards established by paragraphs (11) lic Utility Regulatory Policies Act of 1978 from, any provision of existing Federal law, through (13) of section 111(d) in the case of shall be deemed to be a reference to the date including but not limited to any requirement any electric utility in a State if, before the of enactment of this paragraph. or direction relating to the use of the Fed- enactment of this subsection— ‘‘(E) In a State that permits third-party eral utility’s transmission system, environ- ‘‘(1) the State has implemented for such marketers to sell electric energy to retail mental protection, fish and wildlife protec- utility the standard concerned (or a com- electric consumers, such consumers shall be tion, flood control, navigation, water deliv- parable standard); entitled to receive the same time-based me- ery, or recreation; or ‘‘(2) the State regulatory authority for tering and communications device and serv- (B) authorize abrogation of any contract or such State or relevant nonregulated electric ice as a retail electric consumer of the elec- treaty obligation. utility has conducted a proceeding to con- tric utility. (3) REPEAL.—Section 311 of title III of Ap- sider implementation of the standard con- ‘‘(F) Notwithstanding subsections (b) and pendix B of the Act of October 27, 2000 (P.L. cerned (or a comparable standard) for such (c) of section 112, each State regulatory au- 106–377, section 1(a)(2); 114 Stat. 1441, 1441A– utility; or thority shall, not later than 18 months after 80; 16 U.S.C. 824n) is repealed. ‘‘(3) the State legislature has voted on the the date of enactment of this paragraph con- Subtitle C—Amendments to PURPA implementation of such standard (or a com- duct an investigation in accordance with sec- parable standard) for such utility.’’. tion 115(i) and issue a decision whether it is SEC. 1251. NET METERING AND ADDITIONAL appropriate to implement the standards set STANDARDS. (B) CROSS REFERENCE.—Section 124 of such Act (16 U.S.C. 2634) is amended by adding the out in subparagraphs (A) and (C).’’. (a) ADOPTION OF STANDARDS.—Section (b) STATE INVESTIGATION OF DEMAND RE- 111(d) of the Public Utility Regulatory Poli- following at the end thereof: ‘‘In the case of each standard established by paragraphs (11) SPONSE AND TIME-BASED METERING.—Section cies Act of 1978 (16 U.S.C. 2621(d)) is amended 115 of the Public Utilities Regulatory Poli- by adding at the end the following: through (13) of section 111(d), the reference contained in this subsection to the date of cies Act of 1978 (16 U.S.C. 2625) is amended as ‘‘(11) NET METERING.—Each electric utility enactment of this Act shall be deemed to be follows: shall make available upon request net me- (1) By inserting in subsection (b) after the tering service to any electric consumer that a reference to the date of enactment of such paragraphs (11) through (13).’’. phrase ‘‘the standard for time-of-day rates the electric utility serves. For purposes of established by section 111(d)(3)’’ the fol- this paragraph, the term ‘net metering serv- SEC. 1252. SMART METERING. lowing: ‘‘and the standard for time-based me- ice’ means service to an electric consumer (a) IN GENERAL.—Section 111(d) of the Pub- tering and communications established by under which electric energy generated by lic Utilities Regulatory Policies Act of 1978 section 111(d)(14)’’. that electric consumer from an eligible on- (16 U.S.C. 2621(d)) is amended by adding at (2) By inserting in subsection (b) after the site generating facility and delivered to the the end the following: phrase ‘‘are likely to exceed the metering’’ local distribution facilities may be used to ‘‘(14) TIME-BASED METERING AND COMMU- the following: ‘‘and communications’’. offset electric energy provided by the elec- NICATIONS.— (3) By adding the at the end the following: tric utility to the electric consumer during ‘‘(A) Not later than 18 months after the ‘‘(i) TIME-BASED METERING AND COMMUNICA- the applicable billing period. date of enactment of this paragraph, each TIONS.—In making a determination with re- ‘‘(12) FUEL SOURCES.—Each electric utility electric utility shall offer each of its cus- spect to the standard established by section shall develop a plan to minimize dependence tomer classes, and provide individual cus- 111(d)(14), the investigation requirement of on 1 fuel source and to ensure that the elec- tomers upon customer request, a time-based section 111(d)(14)(F) shall be as follows: Each tric energy it sells to consumers is generated rate schedule under which the rate charged State regulatory authority shall conduct an using a diverse range of fuels and tech- by the electric utility varies during different investigation and issue a decision whether or nologies, including renewable technologies. time periods and reflects the variance, if not it is appropriate for electric utilities to ‘‘(13) FOSSIL FUEL GENERATION EFFI- any, in the utility’s costs of generating and provide and install time-based meters and CIENCY.—Each electric utility shall develop purchasing electricity at the wholesale level. communications devices for each of their and implement a 10-year plan to increase the The time-based rate schedule shall enable customers which enable such customers to efficiency of its fossil fuel generation.’’. the electric consumer to manage energy use participate in time-based pricing rate sched- (b) COMPLIANCE.— and cost through advanced metering and ules and other demand response programs.’’. (c) FEDERAL ASSISTANCE ON DEMAND RE- (1) TIME LIMITATIONS.—Section 112(b) of the communications technology. Public Utility Regulatory Policies Act of ‘‘(B) The types of time-based rate sched- SPONSE.—Section 132(a) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 1978 (16 U.S.C. 2622(b)) is amended by adding ules that may be offered under the schedule 2642(a)) is amended by striking ‘‘and’’ at the at the end the following: referred to in subparagraph (A) include, end of paragraph (3), striking the period at ‘‘(3)(A) Not later than 2 years after the en- among others— the end of paragraph (4) and inserting ‘‘; actment of this paragraph, each State regu- ‘‘(i) time-of-use pricing whereby electricity and’’, and by adding the following at the end latory authority (with respect to each elec- prices are set for a specific time period on an thereof: tric utility for which it has ratemaking au- advance or forward basis, typically not ‘‘(5) technologies, techniques, and rate- changing more often than twice a year, thority) and each nonregulated electric util- making methods related to advanced meter- based on the utility’s cost of generating and/ ity shall commence the consideration re- ing and communications and the use of these or purchasing such electricity at the whole- ferred to in section 111, or set a hearing date technologies, techniques and methods in de- sale level for the benefit of the consumer. for such consideration, with respect to each mand response programs.’’. Prices paid for energy consumed during standard established by paragraphs (11) (d) FEDERAL GUIDANCE.—Section 132 of the through (13) of section 111(d). these periods shall be pre-established and Public Utility Regulatory Policies Act of ‘‘(B) Not later than 3 years after the date known to consumers in advance of such con- 1978 (16 U.S.C. 2642) is amended by adding the of the enactment of this paragraph, each sumption, allowing them to vary their de- following at the end thereof: State regulatory authority (with respect to mand and usage in response to such prices ‘‘(d) DEMAND RESPONSE.—The Secretary each electric utility for which it has rate- and manage their energy costs by shifting shall be responsible for— making authority), and each nonregulated usage to a lower cost period or reducing ‘‘(1) educating consumers on the avail- electric utility, shall complete the consider- their consumption overall; ability, advantages, and benefits of advanced ation, and shall make the determination, re- ‘‘(ii) critical peak pricing whereby time-of- metering and communications technologies, ferred to in section 111 with respect to each use prices are in effect except for certain including the funding of demonstration or standard established by paragraphs (11) peak days, when prices may reflect the costs pilot projects; through (13) of section 111(d).’’. of generating and/or purchasing electricity ‘‘(2) working with States, utilities, other (2) FAILURE TO COMPLY.—Section 112(c) of at the wholesale level and when consumers energy providers and advanced metering and the Public Utility Regulatory Policies Act of may receive additional discounts for reduc- communications experts to identify and ad- 1978 (16 U.S.C. 2622(c)) is amended by adding ing peak period energy consumption; and dress barriers to the adoption of demand re- at the end the following: ‘‘(iii) real-time pricing whereby electricity sponse programs; and ‘‘In the case of each standard established by prices are set for a specific time period on an ‘‘(3) not later than 180 days after the date paragraphs (11) through (13) of section 111(d), advanced or forward basis, reflecting the of enactment of the Energy Policy Act of the reference contained in this subsection to utility’s cost of generating and/or purchasing 2005, providing Congress with a report that the date of enactment of this Act shall be electricity at the wholesale level, and may identifies and quantifies the national bene- deemed to be a reference to the date of en- change as often as hourly. fits of demand response and makes a rec- actment of such paragraphs (11) through ‘‘(C) Each electric utility subject to sub- ommendation on achieving specific levels of (13).’’. paragraph (A) shall provide each customer such benefits by January 1, 2007.’’. (3) PRIOR STATE ACTIONS.— requesting a time-based rate with a time- (e) DEMAND RESPONSE AND REGIONAL CO- (A) IN GENERAL.—Section 112 of the Public based meter capable of enabling the utility ORDINATION.— Utility Regulatory Policies Act of 1978 (16 and customer to offer and receive such rate, (1) IN GENERAL.—It is the policy of the U.S.C. 2622) is amended by adding at the end respectively. United States to encourage States to coordi- the following: ‘‘(D) For purposes of implementing this nate, on a regional basis, State energy poli- ‘‘(d) PRIOR STATE ACTIONS.—Subsections paragraph, any reference contained in this cies to provide reliable and affordable de- (b) and (c) of this section shall not apply to section to the date of enactment of the Pub- mand response services to the public.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00176 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2329

(2) TECHNICAL ASSISTANCE.—The Secretary enactment of this Act shall be deemed to be use of any means or instrumentality of of Energy shall provide technical assistance a reference to the date of enactment of such interstate commerce or of the mails to use to States and regional organizations formed paragraph (14).’’. or employ, in the transmission of electric en- by 2 or more States to assist them in— (i) PRIOR STATE ACTIONS REGARDING SMART ergy in interstate commerce, the sale of (A) identifying the areas with the greatest METERING STANDARDS.— electric energy at wholesale in interstate demand response potential; (1) IN GENERAL.—Section 112 of the Public commerce, the transportation of natural gas (B) identifying and resolving problems in Utility Regulatory Policies Act of 1978 (16 in interstate commerce, or the sale in inter- transmission and distribution networks, in- U.S.C. 2622) is amended by adding at the end state commerce of natural gas for resale for cluding through the use of demand response; the following: ultimate public consumption for domestic, (C) developing plans and programs to use ‘‘(e) PRIOR STATE ACTIONS.—Subsections commercial, industrial, or any other use, demand response to respond to peak demand (b) and (c) of this section shall not apply to any fraudulent, manipulative, or deceptive or emergency needs; and the standard established by paragraph (14) of device or contrivance in contravention of (D) identifying specific measures con- section 111(d) in the case of any electric util- such rules and regulations as the Federal En- sumers can take to participate in these de- ity in a State if, before the enactment of this ergy Regulatory Commission may prescribe mand response programs. subsection— as necessary or appropriate in the public in- (3) REPORT.—Not later than 1 year after ‘‘(1) the State has implemented for such terest. the date of enactment of the Energy Policy utility the standard concerned (or a com- (b) APPLICATION OF FEDERAL POWER ACT TO Act of 2005, the Commission shall prepare parable standard); THIS ACT.—The provisions of section 307 and publish an annual report, by appropriate ‘‘(2) the State regulatory authority for through 309 and 313 through 317 of the Fed- region, that assesses demand response re- such State or relevant nonregulated electric eral Power Act shall apply to violations of sources, including those available from all utility has conducted a proceeding to con- the Electric Reliability Act of 2005 in the consumer classes, and which identifies and sider implementation of the standard con- same manner and to the same extent as such reviews— cerned (or a comparable standard) for such provisions apply to entities subject to Part (A) saturation and penetration rate of ad- utility within the previous 3 years; or II of the Federal Power Act. vanced meters and communications tech- ‘‘(3) the State legislature has voted on the SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIV- nologies, devices and systems; implementation of such standard (or a com- ERS, ETC UNDER FEDERAL POWER (B) existing demand response programs and parable standard) for such utility within the ACT. time-based rate programs; previous 3 years.’’. Part III of the Federal Power Act is (C) the annual resource contribution of de- (2) CROSS REFERENCE.—Section 124 of such amended by inserting the following new sec- mand resources; Act (16 U.S.C. 2634) is amended by adding the tion after section 319 and by redesignating (D) the potential for demand response as a following at the end thereof: ‘‘In the case of sections 320 and 321 as sections 321 and 322, quantifiable, reliable resource for regional the standard established by paragraph (14) of respectively: planning purposes; and section 111(d), the reference contained in this ‘‘SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, (E) steps taken to ensure that, in regional subsection to the date of enactment of this WAIVERS, ETC. transmission planning and operations, de- Act shall be deemed to be a reference to the ‘‘(a) RULE REQUIRED FOR CERTAIN WAIVERS, mand resources are provided equitable treat- date of enactment of such paragraph (14).’’. EXEMPTIONS, ETC.—Not later than 6 months ment as a quantifiable, reliable resource rel- Subtitle D—Market Transparency, after the enactment of this Act, the Commis- ative to the resource obligations of any load- Enforcement, and Consumer Protection sion shall promulgate a rule establishing specific criteria for providing an exemption, serving entity, transmission provider, or SEC. 1282. MARKET MANIPULATION. transmitting party. waiver, or other reduced or abbreviated form Part II of the Federal Power Act (16 U.S.C. of compliance with the requirements of sec- (f) FEDERAL ENCOURAGEMENT OF DEMAND 824 et seq.) is amended by adding at the end RESPONSE DEVICES.—It is the policy of the tions 204, 301, 304, and 305 (including any pro- the following: United States that time-based pricing and spective blanket order). Such criteria shall other forms of demand response, whereby ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFOR- be sufficient to insure that any such action MATION. electricity customers are provided with elec- taken by the Commission will be consistent ‘‘No person or other entity (including an tricity price signals and the ability to ben- with the purposes of such requirements and entity described in section 201(f)) shall will- efit by responding to them, shall be encour- will otherwise protect the public interest. fully and knowingly report any information aged, and the deployment of such technology ‘‘(b) MORATORIUM ON CERTAIN WAIVERS, EX- relating to the price of electricity sold at and devices that enable electricity cus- EMPTIONS, ETC.—After the date of enactment tomers to participate in such pricing and de- wholesale or availability of transmission ca- of this section, the Commission may not mand response systems shall be facilitated. pacity, which information the person or any issue, adopt, order, approve, or promulgate It is further the policy of the United States other entity knew to be false at the time of any exemption, waiver, or other reduced or that the benefits of such demand response the reporting, to a Federal agency with in- abbreviated form of compliance with the re- that accrue to those not deploying such tent to fraudulently affect the data being quirements of section 204, 301, 304, or 305 (in- technology and devices, but who are part of compiled by such Federal agency. cluding any prospective blanket order) until the same regional electricity entity, shall be ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRAD- after the rule promulgated under subsection recognized. ING. (a) has taken effect. (g) TIME LIMITATIONS.—Section 112(b) of ‘‘(a) PROHIBITION.—No person or other enti- ‘‘(c) PREVIOUS FERC ACTION.—The Commis- the Public Utility Regulatory Policies Act of ty (including an entity described in section sion shall undertake a review, by rule or 1978 (16 U.S.C. 2622(b)) is amended by adding 201(f)) shall willfully and knowingly enter order, of each exemption, waiver, or other re- at the end the following: into any contract or other arrangement to duced or abbreviated form of compliance de- ‘‘(4)(A) Not later than 1 year after the en- execute a ‘round trip trade’ for the purchase scribed in subsection (a) that was taken be- actment of this paragraph, each State regu- or sale of electric energy at wholesale. fore the date of enactment of this section. latory authority (with respect to each elec- ‘‘(b) DEFINITION.—For the purposes of this No such action may continue in force and ef- tric utility for which it has ratemaking au- section, the term ‘round trip trade’ means a fect after the date 18 months after the date thority) and each nonregulated electric util- transaction, or combination of transactions, of enactment of this section unless the Com- ity shall commence the consideration re- in which a person or any other entity— mission finds that such action complies with ferred to in section 111, or set a hearing date ‘‘(1) enters into a contract or other ar- the rule under subsection (a). for such consideration, with respect to the rangement to purchase from, or sell to, any ‘‘(d) EXEMPTION UNDER 204(F) NOT APPLICA- standard established by paragraph (14) of sec- other person or other entity electric energy BLE.—For purposes of this section, in apply- tion 111(d). at wholesale; ing section 204, the provisions of section ‘‘(B) Not later than 2 years after the date ‘‘(2) simultaneously with entering into the 204(f) shall not apply.’’. of the enactment of this paragraph, each contract or arrangement described in para- SEC. 1285. REPORTING REQUIREMENTS IN ELEC- State regulatory authority (with respect to graph (1), arranges a financially offsetting TRIC POWER SALES AND TRANS- each electric utility for which it has rate- trade with such other person or entity for MISSION. making authority), and each nonregulated the same such electric energy, at the same (a) AUDIT TRAILS.—Section 304 of the Fed- electric utility, shall complete the consider- location, price, quantity and terms so that, eral Power Act is amended by adding the fol- ation, and shall make the determination, re- collectively, the purchase and sale trans- lowing new subsection at the end thereof: ferred to in section 111 with respect to the actions in themselves result in no financial ‘‘(c)(1) The Commission shall, by rule or standard established by paragraph (14) of sec- gain or loss; and order, require each person or other entity en- tion 111(d).’’. ‘‘(3) enters into the contract or arrange- gaged in the transmission of electric energy (h) FAILURE TO COMPLY.—Section 112(c) of ment with a specific intent to fraudulently in interstate commerce or the sale of elec- the Public Utility Regulatory Policies Act of affect reported revenues, trading volumes, or tric energy at wholesale in interstate com- 1978 (16 U.S.C. 2622(c)) is amended by adding prices.’’. merce, and each broker, dealer, and power at the end the following: SEC. 1283. FRAUDULENT OR MANIPULATIVE marketer involved in any such transmission ‘‘In the case of the standard established by PRACTICES. or sale, to maintain, and periodically submit paragraph (14) of section 111(d), the reference (a) UNLAWFUL ACTS.—It shall be unlawful to the Commission, such records, in elec- contained in this subsection to the date of for any entity, directly or indirectly, by the tronic form, of each transaction relating to

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00177 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 H2330 CONGRESSIONAL RECORD — HOUSE April 20, 2005 such transmission or sale as may be nec- mation in contravention of such rules and by striking out ‘‘two years’’ and inserting essary to determine whether any person has regulations as the Federal Energy Regu- ‘‘five years’’ . employed any fraudulent, manipulative, or latory Commission shall prescribe as nec- (2) By striking ‘‘$500’’ in subsection (b) and deceptive device or contrivance in con- essary or appropriate in the public interest inserting ‘‘$1,000,000’’. travention of rules promulgated by the Com- to (3) By striking subsection (c). mission. (A) prevent the use, distribution, or publi- (b) CIVIL PENALTIES.—Section 316A of the ‘‘(2) Section 201(f) shall not limit the appli- cation of fraudulent, deceptive, or manipula- Federal Power Act (16 U.S.C. 825o091) is cation of this subsection.’’. tive information with respect to quotations amended as follows: (b) NATURAL GAS.—Section 8 of the Natural for and transactions involving the purchase (1) By striking ‘‘section 211, 212, 213, or 214’’ Gas Act is amended by adding the following or sale of electric power, natural gas, the each place it appears and inserting ‘‘Part new subsection at the end thereof: transmission of electric energy, or the trans- II’’. ‘‘(d) The Commission shall, by rule or portation of natural gas; (2) By striking ‘‘$10,000 for each day that order, require each person or other entity en- (B) assure the prompt, accurate, reliable, such violation continues’’ and inserting ‘‘the gaged in the transportation of natural gas in and fair collection, processing, distribution, greater of $1,000,000 or three times the profit interstate commerce, or the sale in inter- and publication of information with respect made or gain or loss avoided by reason of state commerce of natural gas for resale for to quotations for and transactions involving such violation’’. ultimate public consumption for domestic, the purchase or sale of electric power, nat- (3) By adding the following at the end commercial, industrial, or any other use, and ural gas, the transmission of electric energy, thereof: each broker, dealer, and power marketer in- or the transportation of natural gas, and the ‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PERSONS FROM CERTAIN ACTIVITIES.—In any volved in any such transportation or sale, to fairness and usefulness of the form and con- proceeding under this section, the court may maintain, and periodically submit to the tent of such information; censure, place limitations on the activities, Commission, such records, in electronic (C) assure that all such information proc- functions, or operations of, suspend or re- form, of each transaction relating to such essors may, for purposes of distribution and transmission or sale as may be necessary to voke the ability of any entity (without re- publication, obtain on fair and reasonable determine whether any person has employed gard to section 201(f)) to participate in the terms such information with respect to any fraudulent, manipulative, or deceptive transmission of electric energy in interstate quotations for and transactions involving device or contrivance in contravention of commerce or the sale of electric energy at the purchase or sale of electric power, nat- rules promulgated by the Commission.’’. wholesale in interstate commerce if it finds ural gas, the transmission of electric energy, that such censure, placing of limitations, SEC. 1286. TRANSPARENCY. or the transportation of natural gas as is col- (a) DEFINITION.—As used in this section the suspension, or revocation is in the public in- lected, processed, or prepared for distribu- term ‘‘electric power or natural gas informa- terest and that one or more of the following tion or publication by any exclusive proc- tion processor’’ means any person engaged in applies to such entity: essor of such information acting in such ca- the business of— ‘‘(1) Such entity has willfully made or pacity; (1) collecting, processing, or preparing for caused to be made in any application or re- (D) assure that, subject to such limitations distribution or publication, or assisting, par- port required to be filed with the Commis- as the Commission, by rule, may impose as ticipating in, or coordinating the distribu- sion or with any other appropriate regu- necessary or appropriate for the mainte- tion or publication of, information with re- latory agency, or in any proceeding before nance of fair and orderly markets, all per- spect to transactions in or quotations in- the Commission, any statement which was sons may obtain on terms which are not un- volving the purchase or sale of electric at the time and in the light of the cir- reasonably discriminatory such information power, natural gas, the transmission of elec- cumstances under which it was made false or with respect to quotations for and trans- tric energy, or the transportation of natural misleading with respect to any material actions involving the purchase or sale of gas, or fact, or has omitted to state in any such ap- electric power, natural gas, the transmission (2) distributing or publishing (whether by plication or report any material fact which of electric energy, or the transportation of means of a ticker tape, a communications is required to be stated therein. natural gas as is published or distributed by network, a terminal display device, or other- ‘‘(2) Such entity has been convicted of any any electric power or natural gas informa- wise) on a current and continuing basis, in- felony or misdemeanor or of a substantially tion processor; formation with respect to such transactions equivalent crime by a foreign court of com- (E) assure that all electricity and natural or quotations. petent jurisdiction which the court finds— The term does not include any bona fide gas electronic communication networks ‘‘(A) involves the purchase or sale of elec- newspaper, news magazine, or business or fi- transmit and direct orders for the purchase tricity, the taking of a false oath, the mak- nancial publication of general and regular and sale of electricity or natural gas in a ing of a false report, bribery, perjury, bur- circulation, any self-regulatory organiza- manner consistent with the establishment glary, any substantially equivalent activity tion, any bank, broker, dealer, building and and operation of an efficient, fair, and or- however denominated by the laws of the rel- loan, savings and loan, or homestead associa- derly market system for electricity and nat- evant foreign government, or conspiracy to tion, or cooperative bank, if such bank, ural gas; and commit any such offense; broker, dealer, association, or cooperative (F) assure equal regulation of all markets ‘‘(B) arises out of the conduct of the busi- bank would be deemed to be an electric involving the purchase or sale of electric ness of transmitting electric energy in inter- power or natural gas information processor power, natural gas, the transmission of elec- state commerce or selling or purchasing solely by reason of functions performed by tric energy, or the transportation of natural electric energy at wholesale in interstate such institutions as part of customary bank- gas and all persons effecting transactions in- commerce; ing, brokerage, dealing, association, or coop- volving the purchase or sale of electric ‘‘(C) involves the larceny, theft, robbery, erative bank activities, or any common car- power, natural gas, the transmission of elec- extortion, forgery, counterfeiting, fraudu- rier, as defined in section 3 of the Commu- tric energy, or the transportation of natural lent concealment, embezzlement, fraudulent nications Act of 1934, subject to the jurisdic- gas. conversion, or misappropriation of funds, or tion of the Federal Communications Com- (c) RELATED COMMODITIES.—For purposes of securities, or substantially equivalent activ- mission or a State commission, as defined in this section, the phrase ‘‘purchase or sale of ity however denominated by the laws of the section 3 of that Act, unless the Commission electric power, natural gas, the transmission relevant foreign government; or determines that such carrier is engaged in of electric energy, or the transportation of ‘‘(D) involves the violation of section 152, the business of collecting, processing, or pre- natural gas’’ includes the purchase or sale of 1341, 1342, or 1343 or chapter 25 or 47 of title paring for distribution or publication, infor- any commodity (as defined in the Commod- 18, United States Code, or a violation of a mation with respect to transactions in or ities Exchange Act) relating to any such pur- substantially equivalent foreign statute. quotations involving the purchase or sale of chase or sale if such commodity is excluded ‘‘(3) Such entity is permanently or tempo- electric power, natural gas, the transmission from regulation under the Commodities Ex- rarily enjoined by order, judgment, or decree of electric energy, or the transportation of change Act pursuant to section 2 of that Act. of any court of competent jurisdiction from natural gas. (d) PROHIBITION.—No person who owns, con- acting as an investment adviser, under- (b) PROHIBITION.—No electric power or nat- trols, or is under the control or ownership of writer, broker, dealer, municipal securities ural gas information processor may make a public utility, a natural gas company, or a dealer, government securities broker, gov- use of the mails or any means or instrumen- public utility holding company may own, ernment securities dealer, transfer agent, tality of interstate commerce— control, or operate any electronic computer foreign person performing a function sub- (1) to collect, process, distribute, publish, network or other mulitateral trading facility stantially equivalent to any of the above, or or prepare for distribution or publication utilized to trade electricity or natural gas. entity or person required to be registered any information with respect to quotations SEC. 1287. PENALTIES. under the Commodity Exchange Act or any for, or transactions involving the purchase (a) CRIMINAL PENALTIES.—Section 316 of substantially equivalent foreign statute or or sale of electric power, natural gas, the the Federal Power Act (16 U.S.C. 825o(c)) is regulation, or as an affiliated person or em- transmission of electric energy, or the trans- amended as follows: ployee of any investment company, bank, in- portation of natural gas, or (1) By striking ‘‘$5,000’’ in subsection (a) surance company, foreign entity substan- (2) to assist, participate in, or coordinate and inserting ‘‘$5,000,000 for an individual tially equivalent to any of the above, or enti- the distribution or publication of such infor- and $25,000,000 for any other defendant’’ and ty or person required to be registered under

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00178 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2331 the Commodity Exchange Act or any sub- (4) Such entity is subject to statutory dis- ‘‘(4) Such entity has willfully violated any stantially equivalent foreign statute or regu- qualification within the meaning of section provision of this Act. lation, or from engaging in or continuing 3(a)(39) of the Securities Exchange Act of ‘‘(5) Such entity has willfully aided, abet- any conduct or practice in connection with 1934.″. ted, counseled, commanded, induced, or pro- any such activity, or in connection with the (c) NATURAL GAS ACT PENALTIES.—Section cured the violation by any other person of purchase or sale of any security. 21 of the Natural Gas Act is amended by add- any provision of this Act, or has failed rea- ‘‘(4) Such entity has willfully violated any ing the following new subsection at the end sonably to supervise, with a view to pre- provision of this Act. thereof: venting violations of the provisions of this ‘‘(5) Such entity has willfully aided, abet- ‘‘(c) AUTHORITY OF A COURT TO PROHIBIT Act, another person who commits such a vio- ted, counseled, commanded, induced, or pro- PERSONS FROM CERTAIN ACTIVITIES.—In any lation, if such other person is subject to his cured the violation by any other person of proceeding under this section, the court may supervision. For the purposes of this para- any provision of this Act, or has failed rea- censure, place limitations on the activities, graph no person shall be deemed to have sonably to supervise, with a view to pre- functions, or operations of, suspend or re- failed reasonably to supervise any other per- venting violations of the provisions of this voke the ability of any entity (without re- son, if— Act, another person who commits such a vio- gard to section 201(f)) to participate in the ‘‘(A) there have been established proce- lation, if such other person is subject to his transportation of natural gas in interstate dures, and a system for applying such proce- supervision. For the purposes of this para- commerce, or the sale in interstate com- dures, which would reasonably be expected graph no person shall be deemed to have merce of natural gas for resale for ultimate to prevent and detect, insofar as practicable, failed reasonably to supervise any other per- public consumption for domestic, commer- any such violation by such other person, and son, if— cial, industrial, or any other use if it finds ‘‘(B) such person has reasonably discharged ‘‘(A) there have been established proce- that such censure, placing of limitations, the duties and obligations incumbent upon dures, and a system for applying such proce- suspension, or revocation is in the public in- him by reason of such procedures and system dures, which would reasonably be expected terest and that one or more of the following without reasonable cause to believe that to prevent and detect, insofar as practicable, applies to such entity: such procedures and system were not being any such violation by such other person, and ‘‘(1) Such entity has willfully made or complied with. ‘‘(B) such person has reasonably discharged caused to be made in any application or re- ‘‘(6) Such entity has been found by a for- the duties and obligations incumbent upon port required to be filed with the Commis- eign financial or energy regulatory author- him by reason of such procedures and system sion or with any other appropriate regu- without reasonable cause to believe that latory agency, or in any proceeding before ity to have— such procedures and system were not being the Commission, any statement which was ‘‘(A) made or caused to be made in any ap- complied with. at the time and in the light of the cir- plication or report required to be filed with ‘‘(6) Such entity has been found by a for- cumstances under which it was made false or a foreign regulatory authority, or in any eign financial or energy regulatory author- misleading with respect to any material proceeding before a foreign financial or en- ity to have— fact, or has omitted to state in any such ap- ergy regulatory authority, any statement ‘‘(A) made or caused to be made in any ap- plication or report any material fact which that was at the time and in the light of the plication or report required to be filed with is required to be stated therein. circumstances under which it was made false a foreign regulatory authority, or in any ‘‘(2) Such entity has been convicted of any or misleading with respect to any material proceeding before a foreign financial or en- felony or misdemeanor or of a substantially fact, or has omitted to state in any applica- ergy regulatory authority, any statement equivalent crime by a foreign court of com- tion or report to the foreign regulatory au- that was at the time and in the light of the petent jurisdiction which the court finds— thority any material fact that is required to circumstances under which it was made false ‘‘(A) involves the purchase or sale of nat- be stated therein; or misleading with respect to any material ural gas, the taking of a false oath, the mak- ‘‘(B) violated any foreign statute or regula- fact, or has omitted to state in any applica- ing of a false report, bribery, perjury, bur- tion regarding the transmission or sale of tion or report to the foreign regulatory au- glary, any substantially equivalent activity electricity or natural gas; thority any material fact that is required to however denominated by the laws of the rel- ‘‘(C) aided, abetted, counseled, com- be stated therein; evant foreign government, or conspiracy to manded, induced, or procured the violation ‘‘(B) violated any foreign statute or regula- commit any such offense; by any person of any provision of any statu- tion regarding the transmission or sale of ‘‘(B) arises out of the conduct of the busi- tory provisions enacted by a foreign govern- electricity or natural gas; ness of transmitting natural gas in inter- ment, or rules or regulations thereunder, ‘‘(C) aided, abetted, counseled, com- state commerce, or the selling in interstate empowering a foreign regulatory authority manded, induced, or procured the violation commerce of natural gas for resale for ulti- regarding transactions in electricity or nat- by any person of any provision of any statu- mate public consumption for domestic, com- ural gas, or contracts of sale of electricity or tory provisions enacted by a foreign govern- mercial, industrial, or any other use; natural gas, traded on or subject to the rules ment, or rules or regulations thereunder, ‘‘(C) involves the larceny, theft, robbery, of a contract market or any board of trade, empowering a foreign regulatory authority extortion, forgery, counterfeiting, fraudu- or has been found, by a foreign regulatory regarding transactions in electricity or nat- lent concealment, embezzlement, fraudulent authority, to have failed reasonably to su- ural gas, or contracts of sale of electricity or conversion, or misappropriation of funds, or pervise, with a view to preventing violations natural gas, traded on or subject to the rules securities, or substantially equivalent activ- of such statutory provisions, rules, and regu- of a contract market or any board of trade, ity however denominated by the laws of the lations, another person who commits such a or has been found, by a foreign regulatory relevant foreign government; or violation, if such other person is subject to authority, to have failed ‘‘(D) involves the violation of section 152, his supervision. reasonably to supervise, with a view to pre- 1341, 1342, or 1343 or chapter 25 or 47 of title ‘‘(7) Such entity is subject to any final venting violations of such statutory provi- 18, United States Code, or a violation of a order of a State commission (or any agency sions, rules, and regulations, another person substantially equivalent foreign statute. or officer performing like functions), State who commits such a violation, if such other ‘‘(3) Such entity is permanently or tempo- authority that supervises or examines banks, person is subject to his supervision. rarily enjoined by order, judgment, or decree savings associations, or credit unions, State ‘‘(7) Such entity is subject to any final of any court of competent jurisdiction from insurance commission (or any agency or of- order of a State commission (or any agency acting as an investment adviser, under- fice performing like functions), an appro- or officer performing like functions), State writer, broker, dealer, municipal securities authority that supervises or examines banks, dealer, government securities broker, gov- priate Federal banking agency (as defined in savings associations, or credit unions, State ernment securities dealer, transfer agent, section 3 of the Federal Deposit Insurance insurance commission (or any agency or of- foreign person performing a function sub- Act (12 U.S.C. 1813(q))), or the National Cred- fice performing like functions), an appro- stantially equivalent to any of the above, or it Union Administration, that— priate Federal banking agency (as defined in entity or person required to be registered ‘‘(A) bars such person from association section 3 of the Federal Deposit Insurance under the Commodity Exchange Act or any with an entity regulated by such commis- Act (12 U.S.C. 1813(q))), or the National Cred- substantially equivalent foreign statute or sion, authority, agency, or officer, or from it Union Administration, that— regulation, or as an affiliated person or em- engaging in the business of securities, insur- ‘‘(A) bars such person from association ployee of any investment company, bank, in- ance, banking, savings association activities, with an entity regulated by such commis- surance company, foreign entity substan- or credit union activities; or sion, authority, agency, or officer, or from tially equivalent to any of the above, or enti- ‘‘(B) constitutes a final order based on vio- engaging in the business of securities, insur- ty or person required to be registered under lations of any laws or regulations that pro- ance, banking, savings association activities, the Commodity Exchange Act or any sub- hibit fraudulent, manipulative, or deceptive or credit union activities; or stantially equivalent foreign statute or regu- conduct. ‘‘(B) constitutes a final order based on vio- lation, or from engaging in or continuing ‘‘(8) Such entity is subject to statutory dis- lations of any laws or regulations that pro- any conduct or practice in connection with qualification within the meaning of section hibit fraudulent, manipulative, or deceptive any such activity, or in connection with the 3(a)(39) of the Securities Exchange Act of conduct.’’ purchase or sale of any security. 1934.’’.

VerDate jul 14 2003 04:51 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00179 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 H2332 CONGRESSIONAL RECORD — HOUSE April 20, 2005

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS. energy at market-based rates, the Commis- (2) ELECTRIC CONSUMER AND ELECTRIC UTIL- Not later than 12 months after the enact- sion shall review the activities and charac- ITY.—The terms ‘‘electric consumer’’ and ment of this Act the Securities and Ex- teristics of such utility not less frequently ‘‘electric utility’’ have the meanings given change Commission shall review each exemp- than annually to determine whether such those terms in section 3 of the Public Utility tion granted to any person under section 3(a) rates are just and reasonable. Each such util- Regulatory Policies Act of 1978 (16 U.S.C. of the Public Utility Holding Company Act ity shall notify the Commission promptly of 2602). of 1935 and shall review the action of persons any change in the activities and characteris- ‘‘(d) The Commission shall, by rule or operating pursuant to a claim of exempt sta- tics relied upon by the Commission in grant- order, require each person or other entity en- tus under section 3 to determine if such ex- ing such public utility the authority to sell gaged in the transportation of natural gas in emptions and claims are consistent with the electric energy at market-based rates. If the interstate commerce, or the sale in inter- requirements of such section 3(a) and wheth- Commission finds that: state commerce of natural gas for resale for er or not such exemptions or claims of ex- ‘‘(1) a rate charged by a public utility au- ultimate public consumption for domestic, emption should continue in force and effect. thorized to sell electric energy at market- commercial, industrial, or any other use, and SEC. 1289. REVIEW OF ACCOUNTING FOR CON- based rates is unjust, unreasonable, unduly each broker, dealer, and power marketer in- TRACTS INVOLVED IN ENERGY discriminatory or preferential, volved in any such transportation or sale, to TRADING. ‘‘(2) the public utility has intentionally en- maintain, and periodically submit to the Not later than 12 months after the enact- gaged in an activity that violates any other Commission, such records, in electronic ment of this Act, the Comptroller General of rule, tariff, or order of the Commission, or form, of each transaction relating to such the United States shall submit to the Con- ‘‘(3) any violation of the Electric Reli- transmission or sale as may be necessary to gress a report of the results of its review of ability Act of 2005, determine whether any person has employed accounting for contracts in energy trading the Commission shall issue an order imme- any fraudulent, manipulative, or deceptive and risk management activities. The review diately modifying or revoking the authority device or contrivance in contravention of and report shall include, among other issues, of that public utility to sell electric energy rules promulgated by the Commission.’’. the use of mark-to-market accounting and at market-based rates.’’. when gains and losses should be recognized, SEC. 1296. SAVINGS PROVISION. with a view toward improving the trans- SEC. 1294. ENFORCEMENT. Nothing in this title or in any amendment parency of energy trading activities for the (a) COMPLAINTS.—Section 306 of the Federal made by this title shall be construed to af- benefit of investors, consumers, and the in- Power Act (16 U.S.C. 825e) is amended as fol- fect the authority of any court to make a de- tegrity of these markets. lows: termination in any proceeding commenced SEC. 1290. PROTECTION OF FERC REGULATED (1) By inserting ‘‘electric utility,’’ after before the enactment of this Act regarding SUBSIDIARIES. ‘‘Any person,’’. the authority of the Federal Energy Regu- Section 205 of the Federal Power Act is (2) By inserting ‘‘, transmitting utility,’’ latory Commission to permit any person to amended by adding after subsection (f) the after ‘‘licensee’’ each place it appears. sell or distribute electric energy at market- following new subsection: (b) REVIEW OF COMMISSION ORDERS.—Sec- based rates. ‘‘(g) RULES AND PROCEDURES TO PROTECT tion 313(a) of the Federal Power Act (16 The CHAIRMAN. Pursuant to House U.S.C. 8251) is amended by inserting ‘‘electric CONSUMERS OF PUBLIC UTILITIES.—Not later Resolution 219, the gentleman from than 9 months after the date of enactment of utility,’’ after ‘‘person,’’ in the first 2 places this Act, the Commission shall adopt rules it appears and by striking ‘‘any person un- Michigan (Mr. DINGELL) and the gen- and procedures for the protection of electric less such person’’ and inserting ‘‘any entity tleman from Texas (Mr. BARTON) each consumers from self-dealing, interaffiliate unless such entity’’. will control 10 minutes. abuse, and other harmful actions taken by (c) INVESTIGATIONS.—Section 307(a) of the The Chair recognizes the gentleman persons owning or controlling public utili- Federal Power Act (16 U.S.C. 825f(a)) is from Michigan (Mr. DINGELL). ties. Such rules shall ensure that no asset of amended as follows: Mr. DINGELL. Madam Chairman, I a public utility company shall be used as col- (1) By inserting ‘‘, electric utility, trans- yield myself 3 minutes. mitting utility, or other entity’’ after ‘‘per- lateral for indebtedness incurred by the hold- (Mr. DINGELL asked and was given ing company of, and any affiliate of, such son’’ each time it appears. public utility company, and no public utility (2) By striking the period at the end of the permission to revise and extend his re- shall acquire or own any securities of the first sentence and inserting the following: marks.) holding company or other affiliates of the ‘‘or in obtaining information about the sale Mr. DINGELL. Madam Chairman, it holding company unless the Commission has of electric energy at wholesale in interstate is regrettable indeed that we function determined that such acquisition or owner- commerce and the transmission of electric under such a constrained rule, but the ship is consistent with the public interest energy in interstate commerce.’’. amendment which I have been per- and the protection of consumers of such pub- SEC. 1295. CONSUMER PRIVACY AND UNFAIR mitted to offer here contains real bene- lic utility.’’. TRADE PRACTICES. fits for electricity consumers and in- SEC. 1291. REFUNDS UNDER THE FEDERAL (a) PRIVACY.—The Federal Trade Commis- POWER ACT. sion may issue rules protecting the privacy cludes many of the reforms that I and Section 206(b) of the Federal Power Act is of electric consumers from the disclosure of other of my colleagues have proposed amended as follows: consumer information obtained in connec- in committee markups, on the House (1) By amending the first sentence to read tion with the sale or delivery of electric en- floor, and in conference during consid- as follows: ‘‘In any proceeding under this ergy to electric consumers. eration of various energy bills. section, the refund effective date shall be the (b) SLAMMING.—The Federal Trade Com- First, the amendment would prevent date of the filing of a complaint or the date mission may issue rules prohibiting the future Enron-like debacles by pro- of the Commission motion initiating the pro- change of selection of an electric utility ex- viding the Federal Energy Regulatory ceeding, except that in the case of a com- cept with the informed consent of the elec- plaint with regard to market-based rates, tric consumer or if approved by the appro- Commission with broad authority to the Commission may establish an earlier re- priate State regulatory authority. deter and punish fraudulent behavior fund effective date.’’. (c) CRAMMING.—The Federal Trade Com- that distorts electricity and natural (2) By striking the second and third sen- mission may issue rules prohibiting the sale gas markets. tences. of goods and services to an electric consumer (3) By striking out ‘‘the refund effective unless expressly authorized by law or the b 1715 date or by’’ and ‘‘, whichever is earlier,’’ in electric consumer. Enron’s ingenuity demonstrates how the fifth sentence. (d) RULEMAKING.—The Federal Trade Com- difficult it is for regulators to foresee, (4) In the seventh sentence by striking mission shall proceed in accordance with punish, prevent, and correct every type ‘‘through a date fifteen months after such re- section 553 of title 5, United States Code, of misconduct. A recent FERC report fund effective date’’ and insert ‘‘and prior to when prescribing a rule under this section. the conclusion of the proceeding’’ and by (e) STATE AUTHORITY.—If the Federal concluded, ‘‘Currently, the Commission striking the proviso. Trade Commission determines that a State’s has few remedies to address mis- SEC. 1292. ACCOUNTS AND REPORTS. regulations provide equivalent or greater conduct by market participants.’’ Section 318 of the Federal Power Act is protection than the provisions of this sec- Second, my amendment addresses an amended by adding the following at the end tion, such State regulations shall apply in important real electricity concern, the thereof: ‘‘This section shall not apply to sec- that State in lieu of the regulations issued need to ensure that the FERC has the tions 301 and 304 of this Act.’’. by the Commission under this section. authority to issue orders requiring re- SEC. 1293. MARKET-BASED RATES. (f) DEFINITIONS.—For purposes of this sec- funds for all electricity overcharges. tion: Section 205 of the Federal Power Act is Regrettably, that is not now the case. amended by adding the following new sub- (1) STATE REGULATORY AUTHORITY.—The section at the end thereof: term ‘‘State regulatory authority’’ has the The skill and arts of Enron and Enron- ‘‘(g) For each public utility granted the au- meaning given that term in section 3(21) of like rascals will enable them to escape thority by the Commission to sell electric the Federal Power Act (16 U.S.C. 796(21)). much of the refunds which they should

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00180 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.030 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2333 make after the most active kind of records and things like that of the Dingell substitute and urge its ap- wrong doing, as we saw in the western companies that are subject to PUHCA. proval by the House. part of the United States. The Dingell substitute would require Mr. BARTON of Texas. Madam Chair- Third, the amendment does not re- retroactive refunds for market-based man, I yield 2 minutes to the gen- peal the Public Utility Holding Com- rates. It would go back into contracts tleman from New Hampshire (Mr. pany Act of 1935 without which Enron that have already been executed and BASS), a member of the committee. would certainly have purchased more electricity is being consumed and Mr. BASS. Madam Chairman, I rise utilities than it did, sunk its tentacles money for that electricity has been in opposition to the amendment offered even more deeply into the electric in- paid, and for the first time create a ret- by the gentleman from Michigan (Mr. dustry, and skinned more consumers roactive refund. I think that is unwise DINGELL). Basically, this guts the and innocent buyers of electricity. and unnecessary. whole bill. It substitutes a power act The amendment requires the SEC to Basically, I would say that the Din- amendment for the entire bill. It, review a company’s existing exemp- gell substitute is well intentioned; but frankly, goes far beyond anything tions under the act to make sure they in some cases it goes too far, and in being considered currently in the elec- do not assert false claim, as the com- some cases it is silent on the under- tricity debate, particularly with re- mission belatedly determined Enron lying bill. I would hope we would op- spect to utility security, FERC rate- had done. pose it and keep the base text of the making authority, reporting require- With due respect to the gentleman bill that is before us. ments, and industry accounting. from Texas (Mr. BARTON), I believe my Madam Chairman, I reserve the bal- In addition, this amendment would amendment provides a far better alter- ance of my time. fundamentally rewrite portions of the native for consumers than the wholly Mr. DINGELL. Madam Chairman, I Natural Gas Act, something that is inadequate provisions of H.R. 6. H.R. 6 yield 2 minutes to the gentleman from clearly outside the scope of this debate. includes only limited cosmetic changes Virginia (Mr. BOUCHER). I point out that the amendment is op- to current Federal electricity law. It (Mr. BOUCHER asked and was given posed by the Edison Electric Institute, outlaws ‘‘roundtrip trading’’ and filing permission to revise and extend his re- the American Public Power Associa- of false information, but offers no pro- marks.) tion, and the National Rural Electric tection against schemes liken Enron’s Mr. BOUCHER. Madam Chairman, I Cooperative Association. Those are the Death Star, Get Shorty, or Richochet. thank the gentleman from Michigan co-ops. Moreover, H.R. 6 does not authorize (Mr. DINGELL) for yielding me this It does not help site new trans- FERC to grant full refunds to con- time, and I want to commend the gen- mission that is needed to ensure reli- sumers who were skinned by inflated tleman for bringing this very impor- ability and provide adequate supplies electricity prices, but rather allows re- tant substitute for the electricity title of affordable electricity to consumers. funds only from the date when the in the bill before the House this after- It does not repeal PUHCA, which facili- complaint is filed. noon. I strongly support the substitute tates the construction of new construc- Finally, H.R. 6 repeals PUHCA, leav- for the electricity provisions in the bill tion and promotes badly needed invest- ing consumers and investors even more put forward by the gentleman from ment in the electric utility industry. It vulnerable to deception by Enron-type Michigan (Mr. DINGELL). does not amend PURPA to reform the players who concoct ‘‘special purpose The Dingell amendment would im- contract process and save constituents entities’’ to move money around while prove current law in a number of ways. money, and it does not promote cer- hiding behind complex, opaque cor- It would enhance the FERC’s ability to tainty of contract that is necessary to porate structures. I would note a re- deter and punish parties that engage in promote investment and better market cent Standard & Poor report states: fraudulent activities that harm con- operation by putting all market-based ‘‘Utility investment in non-core busi- sumers. It would create reporting re- contracts at risk. It does not provide nesses has been responsible for most of quirements based on the record-keep- FERC the flexibility needed to regulate the credit deterioration in the utility ing requirements under the Federal se- markets that develop in the future by industry.’’ I urge my colleagues to curities laws for all wholesale energy issuing prescriptive rules, procedures, adopt the amendment. transactions. It would increase civil and penalties. Mr. BARTON of Texas. Madam Chair- and criminal penalties under the Fed- What the amendment does do, unfor- man, I yield myself 4 minutes. eral Power Act modeled on the pen- tunately, is create market uncertainty, Madam Chairman, first, I rise in op- alties established in the Sarbanes- it imposes excessive penalties, and it position to the Dingell substitute. I do Oxley law. It would direct the FERC to institutes almost continuous investiga- want the record to show that I sup- review approved market-based rates on tion of all utilities with market-based ported at the Committee on Rules that an annual basis to remain sure that rates, not only burdening utilities, but it be made in order so we could have a they are fair and reasonable as cir- also burdening FERC and stretching its full debate. cumstances change. resources. The Dingell substitute, if it were ac- Unfortunately, one of the things that Madam Chairman, I hope that the tually to be implemented into the bill we have learned during the last few Congress will join me and other like- and become law, would go far beyond years is that the energy markets are minded colleagues in opposing this anything currently being considered in ripe for manipulation. The Dingell sub- amendment. the electricity sector. It would increase stitute would modernize our laws to Mr. DINGELL. Madam Chairman, I the fines already under the bill that go give the FERC the necessary tools to yield 21⁄2 minutes to the gentlewoman up to $1 million. The Dingell substitute prevent and, if necessary, punish the from California (Ms. ESHOO). would take that to $5 million and in entities that engage in fraudulent con- Ms. ESHOO. Madam Chairman, I some cases $25 million. I will admit duct. want to speak to one aspect of this with the gentleman from Michigan In addition to the strong consumer very important consumer protection that the current fine is insignificant. I protection and antifraud provisions, amendment, and that is what the think it is $5,000, and we need to in- the Dingell amendment also retains amendment is: it protects consumers. crease that. So the bill takes it to $1 the less controversial and very useful The issue I want to talk about is re- million. The Dingell substitute would parts of the electricity title, including fund authority. take it to between $5 million and $25 the much-needed reliability provisions Can there be any doubt today that million. for transmission lines, the net meter- Western consumers were gouged as a The Dingell substitute does not re- ing and smart metering provisions and result of energy market manipulation peal PUHCA. The bill before us does re- FERC Lite, to name other provisions. in 2000 and 2001? Can there be any peal the Public Utility Holding Com- The Dingell substitute would be a doubt that refunds are owed? So when pany Act, but the bill before us keeps positive addition to the Federal law, a Member rises on the floor and talks in order the reporting requirements ensuring that wholesale electricity about retroactive and it is not fair to under PUHCA so the SEC would have markets operate in an efficient and eq- have something retroactive, we have to the ability to maintain analysis of uitable manner. I strongly support the have the arm of the law reach back so

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00181 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.111 H20PT1 H2334 CONGRESSIONAL RECORD — HOUSE April 20, 2005 consumers are refunded the dollars Mr. BASS. I thank the gentleman for There was no objection. that they were ripped off. yielding. Mr. MARKEY. Madam Chairman, I Madam Chairman, 5 years after the Madam Chairman, over the past sev- yield myself 11⁄2 minutes. crisis in California, no refunds have eral months, the gentleman from Texas The provisions which are in the bill been ordered because for 5 years the and I have worked toward a fair and eq- already are good. It is that they just do Federal Energy Regulatory Commis- uitable solution to the problem of con- not go far enough to deal with this sion has insisted it does not have the tamination caused by MTBE getting electricity crisis that we saw that went authority to order the retroactive re- into our groundwater and other waters. across the country. funds that will fully compensate con- I appreciate all his efforts and the faith What the Dingell amendment does is sumers. FERC knows the evidence, and he has placed in me on this issue which very simple. It creates an antifraud au- here it is: one, Enron memos reveal is so critical to New Hampshire, a thority at the Federal Energy Regu- that the energy trading company im- State that has been affected signifi- latory Commission with tough, new plemented elaborate market manipula- cantly and, obviously, other affected criminal and civil penalties. It ensures, in other words, that they can get the tion strategies to drive up prices. The States. Enron memos gave these ploys names Like him, I had hoped that we would real job done. It also provides real transparency on like Fat Boy, Death Star, and Get be able to have our solution ready for Shorty. pricing and trading of electricity in today’s House consideration of the En- this marketplace. It also prohibits self- Number two, audio tapes of Enron ergy Policy Act. However, I am not energy traders surfaced that confirmed dealing, interaffiliate dealing. All of satisfied that what we have agreed the existence of secret deals with the kinds of activities which were iden- upon in principle is sufficient to the power producers that deliberately tified in the aftermath of the Enron problem or comprehensive enough to drove up prices by ordering power and the related scandals is prohibited; have my support, and I would rather plants shut down. and the authority is given to the FERC Number three, transcripts of Reliant not rush it simply for the sake of being in order to make sure that they get the Energy traders from 2000 revealed that done today. job done. This is the needed final piece Reliant power plant operators delib- Does the gentleman agree that spend- to make sure we do not see a repetition erately kept power offline in order to ing additional time will result in an of what happened at Enron. increase energy prices at the height of improved product that will provide a Vote ‘‘aye’’ on the Dingell amend- the crisis. mechanism to ensure that our drinking ment. Four, on March 3, 2003, a coalition of water is clean and safe today and into Madam Chairman, I yield the balance California governmental entities and the future? of my time to the gentleman from public utilities presented the FERC Mr. BARTON of Texas. Madam Chair- Michigan (Mr. DINGELL). with more than 1,000 pages of evidence man, I agree with the gentleman from (Mr. DINGELL asked and was given documenting a ‘‘pervasive pattern of New Hampshire. He and I have been permission to revise and extend his re- market manipulation that resulted in working toward a solution to the con- marks.) disastrous effects on prices and reli- tamination problem in New Hampshire Mr. DINGELL. Madam Chairman, if ability.’’ And in March 2003, the FERC and across the Nation. If he is not sat- my colleagues want a replication of confirmed that significant power ma- isfied with the solution thus far, then I Enron and the abuses, the stealing, the nipulation had taken place in the West. am not satisfied with it either, and I dishonesty that hurt pensioners, retir- This amendment gives the FERC agree with him that more must and ees, shareholders, others in the indus- broad authority to order retroactive will be done. try, hundreds and hundreds of rate- refunds for market-based rates that are With the time that we will have to payers and hurt the structure of the not just and reasonable. For California, continue our already significant States in the western United States, billions are at stake. I urge a vote for progress, I appreciate his commitment then vote against this amendment. this amendment. Last fall Governor to reach out to other Members with This amendment stops self-dealing. Schwarzenegger said, ‘‘Californians de- similar problems like his. Committee This amendment requires that there be serve refunds to fairly compensate staff and I stand ready to assist in repayment of money wrongfully taken. them for the excessively high prices every way and are fully committed to It allows FERC and the SEC to provide they paid during the energy crisis.’’ resolving the problem before the bill is the necessary steps that will stop Mr. BARTON of Texas. Madam Chair- presented to the President for enact- Enrons and others like Enron from man, I yield myself such time as I may ment. doing what Enron did, which caused consume for the purpose of responding Mr. BASS. I thank the gentleman for such desperate hurt to millions of to the gentlewoman from California those comments. Americans in the western United (Ms. ESHOO) and also to enter into a Does the gentleman also agree that States. colloquy with the gentleman from New the principles we have established so My amendment does go further than Hampshire. far, including a fair funding system, anything else being considered. Enron’s First, let me simply say I understand strict cleanup standard and an appro- abuses went further than anyone ex- the concern of the gentlewoman from priate amount of time for contamina- pected, far beyond, and they shook the California (Ms. ESHOO) about the situa- tion discovery will be safeguarded in entire electric industry. But it also hurt consumers, States, and also retir- tion in the power markets in California the final product unless equivalent ees and pensioners and shareholders. 4 to 5 years ago, and I know she feels mechanisms can be developed? This amendment will stop that more needs to be done. As we speak, Mr. BARTON of Texas. I agree with abuse. I urge my colleagues to vote for there is litigation in process to have that statement, also. The principles it. more done in that area. the gentleman has outlined should be I will say on the record, hundreds of The CHAIRMAN. The question is on part of the solution. I am confident millions, if not billions, of dollars have the amendment offered by the gen- that our work will adequately satisfy been reclaimed, indictments have been tleman from Michigan (Mr. DINGELL). New Hampshire and other contami- brought, cases have gone to court and The question was taken; and the convictions obtained and people sent to nated States with problems similar to Chairman announced that the noes ap- jail for some of the transgressions the his State’s. peared to have it. Madam Chairman, I will just say that gentlewoman alluded to. Mr. DINGELL. Madam Chairman, I we are in opposition to the Dingell sub- demand a recorded vote. b 1730 stitute and would urge a ‘‘no’’ vote at The CHAIRMAN. Pursuant to clause While it is obvious that she feels the appropriate time. 6 of rule XVIII, further proceedings on more needs to be done, I think it does Madam Chairman, I yield back the the amendment offered by the gen- need to be stated on the record that balance of my time. tleman from Michigan (Mr. DINGELL) quite a bit already has been done. The CHAIRMAN. Without objection, will be postponed. Madam Chairman, I yield to the gen- the gentleman from Massachusetts It is now in order to consider amend- tleman from New Hampshire (Mr. (Mr. MARKEY) will control the balance ment No. 3 printed in House Report BASS). of the time. 109–49.

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00182 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.113 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2335 AMENDMENT NO. 3 OFFERED BY MR. MARKEY Ladies and gentlemen, this is a huge oil are inaccurate and not based on re- Mr. MARKEY. Mr. Chairman, I offer test for us. The Republican majority ality. I have been there many times, an amendment. has decided not to do anything about Madam Chairman, and I can tell you The CHAIRMAN. The Clerk will des- making SUVs and automobiles more that we can produce it and the bears ignate the amendment. fuel efficient, and that is where 70 per- and the caribou will be in ANWR just The text of the amendment is as fol- cent of all gasoline, all oil, goes, into like they are in Prudhoe Bay. lows: those gasoline tanks. Instead of mak- Mr. MARKEY. Madam Chairman, I ARKEY 1 Amendment No. 3 offered by Mr. M : ing those vehicles more efficient, what yield 1 ⁄2 minutes to the gentlewoman Strike title XXII. they have decided to do is to construct from California (Ms. LEE). The CHAIRMAN. Pursuant to House a gasoline station on top of the Arctic Ms. LEE. Madam Chairman, first, let Resolution 219, the gentleman from Wildlife Refuge in order to fuel those me just say, I want to thank the gen- Massachusetts (Mr. MARKEY) and the inefficient vehicles. We must stop tleman from Massachusetts (Mr. MAR- gentleman from California (Mr. POMBO) them. KEY) for yielding me the time, for his each will control 15 minutes. Madam Chairman, I reserve the bal- leadership and the gentlewoman from The Chair recognizes the gentleman ance of my time. Connecticut (Mrs. JOHNSON) for her from Massachusetts (Mr. MARKEY). Mr. POMBO. Madam Chairman, I leadership in making sure that this is a Mr. MARKEY. Madam Chairman, I yield 2 minutes to the gentleman from bipartisan amendment. Opening up the yield myself 3 minutes. The Arctic National Wildlife Refuge Texas (Mr. GENE GREEN). Arctic National Wildlife Refuge to oil Mr. GENE GREEN of Texas. Madam is a national treasure, a place of an- and gas drilling is not the answer to Chairman, I thank the chairman of the cient wilderness that remains much our long-term energy or security needs. Committee on Resources for yielding the same as it was at the end of the The fact is, we are addicted to oil. last Ice Age. It is one of the few places me this time. The proponents of this bill would have This is a perennial amendment we remaining in America where man has you believe that the only way to cure have. This energy bill provides for pro- not scarred the land. It is a place where an addict is to feed the addiction at duction, conservation and research, but roads do not pave the way and where whatever cost, regardless of the effect ANWR is one of the most important the animals truly do roam free. The on the environment, on our wildlife, refuge is home to the 130,000-strong production parts. Granted we cannot and on our public health. porcupine caribou herd as well as polar produce ourselves out of these high en- As a psychiatric social worker by bears, musk oxen and even more than ergy prices, but we have to produce in profession, I can tell you this does not 130 species of migratory birds. our own country if we ever expect to work. We should be working to reduce All wildlife refuges have, by bipar- lower the prices. our dependency by promoting energy tisan consensus, been set aside to en- Our Nation needs more energy. Our efficiency and energy conservation, sure that a few special places, natural economy, consumers and workers bid and funding research to develop and places, will not succumb to the pres- against China, Europe and India’s utilize clean and renewable sources of sures of commercial exploitation. The economies for every barrel of Middle energy. By allowing drilling in the Arc- Arctic refuge is one of the most unique Eastern, African and Venezuelan oil. tic refuge, we are spoiling a pristine wild and irreplaceable refuges of all. If The Congress so far has refused to open natural environment, we are furthering we allow the oil and gas drillers into promising offshore areas to explo- our dependence on oil, and we are con- this refuge, we might as well say good- ration, even as Cuba, employing Span- tributing to high levels of asthma, such bye to protection of all 544 refuges in ish and Chinese energy companies, is as in my own district in west Oakland this country. drilling 60 miles from the Florida Keys, and throughout the country. The Arctic National Wildlife Refuge much closer than we allow American Reducing dependencies on alcohol is the crown jewel of the wildlife refuge companies to do. and on drugs leads to individuals lead- system in the United States. Of those No nation can produce energy more ing clean and sober lives. Our country 544 refuges, it is estimated that 60 per- responsibly than ours. Energy produc- needs to reduce its dependency on oil, cent of them have the potential for oil tion is not like it used to be 50, 25 or for a clean and sober and independent and gas development. Overturning the even 10 years ago. It is much cleaner future is what our children deserve. 39-year precedent of never leasing a and much more scrutinized. Supporting Mr. POMBO. Madam Chairman, I wildlife refuge to the oil companies only long-term solutions and conserva- yield 2 minutes to the gentleman from where leases did not previously exist tion is important, but not enough. Our Nevada (Mr. GIBBONS). will set in motion a series of events cars get 25 percent of their gas from (Mr. GIBBONS asked and was given that will endanger each of the other 543 U.S. lands, but our children will see permission to revise and extend his re- refuges spread throughout the States even less if we do not produce at home. marks.) and districts of the Members of this Two-thirds of the world’s oil reserves Mr. GIBBONS. Madam Chairman, as I body. are in the Middle East, controlled by rise to the podium here, I want to bring Besides the wildlife refuges, drilling OPEC. If they act as a cartel, they will up a poster which shows what this Arc- in the Arctic refuge is widely seen as control the world price of oil for the tic National Wildlife Area really is. the first step in lifting the moratoria foreseeable future. If we allow domes- First of all, let me say that the Arctic on drilling on the outer continental tic production to die out, conservation National Wildlife Refuge is 19.5 million shelf of the Atlantic and Pacific coasts, and research will not save us and we acres of Alaska, set aside in 1960. Also specifically in Florida and California. will have to pay a terrible economic in 1960, they set aside 1.5 million acres The chairman of ExxonMobil re- price. for exploration for oil. That is called cently said that drilling in the Arctic If we allow production in ANWR, we the area 1002 part of ANWR. refuge is representative of the broader will see great benefits at a very low, This is area 1002. This is the area we issue of whether drilling will be al- temporary cost and see thousands of are going to be drilling on for oil and lowed in other environmentally sen- good-paying jobs created over the next gas. As you can see, no big trees, no big sitive places such as the coasts of Cali- 25 years. The caribou, bears, birds and mountains, no big herds of anything. It fornia and Florida. In a 2003 speech to other wildlife can thrive just as they is just frozen tundra out there. the Republican Caucus, House Majority have at Prudhoe Bay. Tanker accidents b 1745 Leader TOM DELAY proclaimed the will be prevented by new, double-hulled issue of the Arctic refuge is about oil tankers and environmental impacts But the 1002 area will continue to precedent and repeatedly referred to its overall will be much less. provide, as the USGS has already said, symbolism. Drill sites are much smaller today an estimated oil reservoir for this Matthew Simmons, an oil industry and we use fewer wells with our new country that will equal the amount of banker and former Bush adviser, re- drilling technology. Permanent gravel oil we will get from Saudi Arabia for 30 cently told the New York Times that if roads are no longer necessary if we use years, Madam Chairman; 10.4 billion you cannot do ANWR, you will never the winter ice road. The doom and barrels would make it the largest oil be able to drill in the promising areas. gloom scenarios by opponents of ANWR reserve find in the world since the

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00183 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.116 H20PT1 H2336 CONGRESSIONAL RECORD — HOUSE April 20, 2005 nearby Prudhoe Bay discovery was we can see the great damage that is India in the field. And if we do not done 30 years ago. done up there. The caribou are using wake up, we will have a collapse in our Madam Chairman, the area 1002 is the pipeline to rub their backs on. The economy. We must develop not only not a wilderness. It is part of ANWR caribou are calving around the wells. ANWR but other sources of fossil fuels set aside 18 years ago for oil and gas The gentleman from Massachusetts in this country as well as nuclear and exploration. This is where this 2,000- (Mr. MARKEY) has never been there; so as well as hydro and as well as wind acre surface disturbance is going to he would not know. And we have polar and all those other forms of energy and take place. We are not talking about a bears now that are using the line for a quit talking about pipe dreams, be- pristine wilderness area that one would transportation corridor. cause if we do not, there will not be the find in any of the southern 48 contig- So, Madam Chairman, those who jobs for the future generations and this uous States that have forests. would support the Markey amendment country cannot lead this world. And to So with that, Madam Chairman, I are really supporting terrorism because have someone stand on this floor and just wanted to bring to the Members’ you do not want to develop the domes- offer an amendment that will take out attention that this is not the pristine tic fuel supply in this country, and we the only provisional production is wilderness that most people have in can. We should be doing this right now. against America, against this great Na- mind. This is a frozen tundra that we And I hear people tell me it will only tion, and, in fact, would do the wrong are going to disturb only 2,000 acres of affect us 10 years from now. If you had thing for this Nation. it, and from there we are going to pro- done it when I asked you to do it 20 So I ask Members to vote ‘‘no’’ on vide this country with nearly 10 billion years ago, we could have solved that the Markey amendment. Keep this barrels of new oil to meet the needs of problem. good bill intact. Let us produce energy this country’s energy demands. The thing that sort of strikes me the for this Nation. Let us provide for fu- Mr. MARKEY. Madam Chairman, I most is I hear people talk about special ture generations. yield 1 minute to the gentleman from interests. In fact, the gentleman from Mr. MARKEY. Madam Chairman, I Minnesota (Mr. KENNEDY). Massachusetts (Mr. MARKEY) men- yield 1 minute to the gentlewoman Mr. KENNEDY of Minnesota. Madam tioned it today about special interests, from California (Ms. WOOLSEY). Chairman, I rise to support this amend- serving up special interests. But I Ms. WOOLSEY. Madam Chairman, I ment. would like to just read a little short want to commend my colleagues for of- Since coming to Congress, I have letter that I happened to pick up off a fering this sensible amendment. We should not even be having this been committed to the need to maxi- Web site. It says: ‘‘Dear friend, in a few discussion because drilling in ANWR mize our domestic energy resources. short hours the Republican energy bill will not make us energy independent However, I firmly believe that we must will be brought up for debate and a and it will not end our Nation’s reli- pursue domestic energy independence vote on the floor of the House of Rep- in a manner that protects our natural ance on Middle East oil. Drilling in resentatives. I need your immediate ANWR will do little to reduce our cur- resources like the Arctic National help to ensure that this terrible bill Wildlife Refuge. Instead of opening up rent dependence on foreign oil because never becomes law. it will take more than 10 years, yes, ANWR to oil drilling, I believe that we ‘‘Last week in the Committee on En- more than 10 years to process what lit- should look to new sources and new ergy and Commerce, I offered a series tle oil may be there. In fact, if we spent technologies to increase our energy of amendments to increase the average half the time promoting legislation independence. fuel efficiency’’ and it was turned down I am proud to say that my State of that encourages the use of renewable by the Republicans. energy that we have discussing drilling Minnesota is a leader in the field of re- ‘‘I then offered an amendment in the in ANWR, we would be close to devel- newable energy such as ethanol, bio- Committee on Resources to strip a pro- oping a sensible energy policy that diesel, and wind energy. Minnesota vision from the bill that would open would ensure real energy independence. companies offer innovative tech- the Arctic National Wildlife Refuge for We would invest in alternative renew- nologies to reduce our energy needs. oil drilling.’’ The Republicans again able clean energy, conservation, and ef- These renewable energy sources and voted against it. ficiency. technologies offer a sensible alter- ‘‘If we allow drilling in the Arctic That is why I will support this sen- native to help reduce our reliance on National Wildlife Refuge we will for- sible amendment, and I encourage my foreign sources of oil without endan- ever ruin this unique wilderness and colleagues to do the same. gering our environment. That is why I allow the oil industry to target all 450 Mr. POMBO. Madam Chairman, I support the Markey-Johnson amend- National Wildlife Refuges . . . yield 2 minutes to the gentleman from ment and urge my colleagues to do the ‘‘For the last 5 years, I have led the Texas (Mr. BARTON), chairman of the same. battle in the House to stop the Repub- Committee on Energy and Commerce. Mr. POMBO. Madam Chairman, I licans in the Congress from selling off (Mr. BARTON of Texas asked and yield 4 minutes to the gentleman from one of our greatest natural resources was given permission to revise and ex- Alaska (Mr. YOUNG), chairman of the to the powerful special interests. Help tend his remarks.) Committee on Transportation and In- me continue to fight to expose to the Mr. BARTON of Texas. Madam Chair- frastructure. American people the dangers of this ex- man, I thank the gentleman from Cali- Mr. YOUNG of Alaska. Madam Chair- treme and ineffective action by making fornia for yielding me this time. man, I want to thank the gentleman a contribution today.’’ First, let me say that I do oppose the from California (Chairman POMBO) and Just, by the way, dial in to Markey amendment, but I want to say the gentleman from Texas (Chairman www.edmarkey.org/contribute. That is that the letter that was just read is to- BARTON) for their fine work on a good a special interest. tally legal. He has got every right if he piece of legislation that starts our ‘‘Help me to continue to fight for wants to use something to try to raise process in becoming independent, pro- sensible, clean and independent energy money. He did not send me that letter. viding energy policy, which I have future and shine a light on the Repub- Had he sent it to me, I would have had heard none from the other side. Re- lican Party backroom attempts to to reply in the negative that I could markably, when I hear people talking cater to special interests by making an not make the contribution. But I rec- about new innovative ideas, they do immediate contribution. As Justice ognize his right to do it in that man- not tell me what ‘‘new’’ is. Louis Brandeis used to say, ‘Sunshine ner. We are fossil-fuel oriented, and I will is the best disinfectant.’’’ I oppose the Markey amendment be- admit to that. And we are also depend- This is a blatant use of an issue to cause I want to pay less for gasoline in ent, and we have to admit to that. And raise money, and you ought to be Texas. I would like to tell the Members we are talking about an area that is ashamed of yourself. To raise money on that my great State is self-sufficient in not pristine, an area, in fact, that an issue that has nothing to do with energy production and self-sufficient in should be developed that is 74 miles energy, energy that this country needs. oil, but it is not true. We are the larg- from the pipeline, an area that we have We are no longer the only buyers on est producer of oil of the 50 States, but developed already in Prudhoe Bay, and the block in this world with China and we are also the largest consumer.

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00184 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.119 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2337 ANWR has the potential to produce Mr. POMBO. Madam Chairman, I serve more oil in ten years than could ever up to 2 million barrels a day for 30 yield 11⁄2 minutes to the gentleman be produced by drilling in the Arctic Na- years. And depending on one’s point of from California (Mr. NUNES). tional Wildlife Refuge. view, that is a lot or a little. If one Mr. NUNES. Madam Chairman, I had For the last five years I have led the battle an opportunity to go up to and visit in in the House to stop the Republicans in Con- wants to say it is a lot, it is more than gress from selling off one of our greatest nat- we import from Saudi Arabia. If one Alaska the gentleman from Alaska’s ural treasures to the powerful special inter- wants to say it is a little, it is less than (Chairman YOUNG) district. And I find ests. Help me continue to fight to expose to we use in a year in this country. But 2 it really interesting to hear the opposi- the American people the dangers of this ex- million barrels a day for 30 years would tion to this bill because when I went up treme and ineffective action by making a lower prices for every American at the there, I envisioned that I would see contribution today. pump. trees, running water, big mountains, Today, I will offer these amendments again I would point out that in terms of the things that the American people would on the House floor. This series of votes is a environment, we have been producing want to preserve. However, when I got critical moment for our country’s energy fu- successfully in Prudhoe Bay for almost ture. I need your help now to expose the there, I found nothing but tundra. And travesty of this Republican energy plan and 30 years without any harm to the envi- it was just kind of a wasteland of ice ensure that this horrendous bill, rife with ronment, as the gentleman from Alas- and tundra. handouts to the special interests, is ulti- ka (Chairman YOUNG) showed in those And as the American people are pay- mately defeated. If this bill passes, we will pictures when he was up here right be- ing upwards of $2.50 a gallon for fuel create more pollution, forever spoil one of fore me. today and we sit in the white building our most important and beautiful public My district produces substantial on Capitol Hill, I wonder what they are lands and be forced to continue placing our amounts of oil and gas. We are pro- thinking out there. soldiers in harm’s way in defense of oil in the ducing 1.5 billion cubic feet of gas This should have been opened long Middle East. every day. That is one half of a trillion ago. We could get 10 percent of our Help me continue to fight for a sensible, cubic feet a year. I cannot tell the clean and independent energy future and daily supply from ANWR. But I believe shine a light on the Republican Party’s Members how many hundreds of thou- that the radical environmental groups backroom attempts to cater to the special sands of barrels of oil per day, but we have been using this as a fund-raising interests by making an immediate contribu- are producing significant amounts of tool for their organizations because tion. As Justice Louis Brandies used to say, oil. We are producing it through the what they say is in ANWR and what we ‘‘sunshine is the best disinfectant.’’ water table and supplies of many of the see when we get there does not exist. Thank your for your action, cities that I represent. We are pro- And now I think the fund-raising has ED MARKEY ducing it from underneath downtown continued. Unfortunately, though, it Mr. MARKEY. Madam Chairman, I Fort Worth, Texas. And we are doing it has spread here to the halls of Con- yield 1 minute to the gentleman from in a safe and environmentally effective gress. And with all the ethics charges Washington State (Mr. INSLEE). fashion. We could do that also in that are being brought today by the (Mr. INSLEE asked and was given ANWR. I strongly support the gen- Democrats, I find it very interesting permission to revise and extend his re- tleman from California’s (Chairman that the author of this amendment marks.) POMBO) amendment that would allow sends out a fund-raising letter, and I Mr. INSLEE. Madam Chairman, the it. have the fund-raising letter right here gentleman from Alaska (Mr. YOUNG) I want to thank our colleagues in the that, that asks people to contribute asked a very important question: other body for already agreeing in the today. And I would like to submit this Where are the technologies that we can reconciliation instructions, and I urge for the RECORD, Madam Chairman, be- use to avoid having to destroy the a ‘‘no’’ vote on the Markey amend- cause this is outrageous when people character of one of our most pristine ment. are paying $2.50 a gallon and the Demo- areas in America? Mr. MARKEY. Madam Chairman, I crats and the radical environmental And the answer is that we have tech- yield 1 minute to the gentleman from groups are using this as a fund-raising nologies today that we simply stopped Ohio (Mr. KUCINICH). using 20 years ago. Mr. KUCINICH. Madam Chairman, I tool. have the greatest respect for the gen- DEAR FRIEND: In a few short hours, the Re- publican Energy Bill will be brought up for b 1600 tleman from Alaska (Mr. YOUNG), and I debate and a vote on the floor of the House If you look at this graph, it shows simply have a difference of opinion of Representatives. I need your immediate the mileage of our cars that we have. with him on this despite that great re- help to ensure that this terrible bill never You see, starting in 1975 it went up dra- spect. becomes law. matically because we had a bipartisan In what has become a congressional Last week, in the Energy and Commerce ritual, the prospect of drilling in the Committee, I offered a series of amendments consensus to demand to use existing Arctic has been repeatedly struck down to increase the average fuel efficiency of technologies to improve our auto- in recognition of the fact that Amer- cars, mini-vans and SUVs. Each of these mobile efficiency. It went up dramati- ican working families do not want it. amendments was voted down by the Repub- cally, almost doubling, almost dou- lican majority on the Committee, ensuring bling by 1985. Still, we have proponents telling us that the most technologically advanced na- that drilling is good for jobs. And then what happened? We fell off tion in the world will continue to ignore en- the wagon, and since that time, our av- Some of the Nation’s largest unions, ergy conservation and not diminish its de- I might point out, like the SEIU, mand for oil. Why is it that we can send a erage full economy shown by this mid- United Auto Workers, United Steel- man to the moon and beyond but cannot dle line has absolutely, absolutely gone workers, and United Farm Workers, make our cars more efficient? This is auto down since 1985. are on record opposing drilling in the mechanics, not rocket science. The fact of the matter is, these are Arctic Refuge. Why? Because it is bad I then offered an amendment in the Re- not future techno dreams that someone labor policy. Oil production is one of sources Committee to strip a provision from has dreamed up in their garage some- the bill that would open the Arctic National where; they are technologies that exist the least labor-intensive industries, Wildlife Refuge for oil drilling. The Repub- supporting fewer than three direct jobs today. I drive a car that gets 44 miles licans on that committee voted against my ′ ″ per $1 million of investment. Energy amendment, choosing to set up a gas station to the gallon. I am 6 2 , 200 pounds; it is efficiency supports 27 jobs for the same in this pristine National Refuge. totally safe and comfortable. investment. If we allow drilling in the Arctic National We need to get back on the fuel effi- It is also bad economic policy. One Wildlife Refuge, we will forever ruin this ciency wagon as we were in the 1980s on dollar spent on petroleum production unique wilderness and allow the oil industry a bipartisan basis and not put a mus- creates only $1.51 in economic value. to target all 540 National Wildlife Refuges tache on the Mona Lisa. You say 2,000 for drilling and exploitation—all for a few acres? It is still a mustache on the But that same dollar, when invested in meager months worth of oil. Furthermore, energy efficiency, creates $2.23 in eco- drilling in the Refuge is completely unneces- Mona Lisa for our most pristine areas. nomic value. sary. If we were to increase the average fuel Mr. POMBO. Mr. Chairman, I yield 1 Our Nation’s energy policy should efficiency of cars, mini-vans and SUV’s by minute to the gentleman from Texas not include drilling in the Arctic. only three miles per gallon, we would con- (Mr. BURGESS).

VerDate jul 14 2003 05:46 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00185 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.120 H20PT1 H2338 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Mr. BURGESS. Mr. Chairman, I Mr. POMBO. Mr. Chairman, I reserve they and their calves would be ex- thank the gentleman for yielding me the balance of my time. tremely vulnerable to predators. this time. Mr. MARKEY. Mr. Chairman, may I Finally, it would take a decade to de- Mr. Chairman, I rise today in opposi- inquire of the Chair how much time is liver oil from the ANWR, and the tion to the Markey amendment. remaining. amount, again, as I said earlier, would Of course, energy independence The Acting CHAIRMAN (Mr. SIMP- be very limited, according to the U.S. should be the goal of this Congress. SON). The gentleman from Massachu- Geological Survey. Worldwide demand for petroleum has setts (Mr. MARKEY) has 51⁄2 minutes re- On the other hand, the National Pe- increased in the last decade. Our pro- maining; the gentleman from Cali- troleum Reserve and other areas are duction has been relatively flat. fornia (Mr. POMBO) has 21⁄2 minutes re- capable of providing far more oil. In The inevitable result is higher prices maining. fact, the Federal Government, the at the gasoline pump. The reality is, it Mr. MARKEY. Mr. Chairman, I yield State of Alaska, the Arctic Slope Re- takes a long time to go from the oil 31⁄2 minutes to the gentlewoman from gional Corporation, and others are in field to the gasoline station, and we Connecticut (Mrs. JOHNSON). the process of leasing 50 million unde- have lost considerable time in this re- Mrs. JOHNSON of Connecticut. Mr. veloped acres in this region. gard. Chairman, I thank the gentleman for We do not need to drill on the ANWR Ten years ago, 1995, 104th Congress, yielding me this time, and I rise in plain. If we were to increase the fuel ef- H.R. 2491 would have allowed oil explo- strong support of the Markey amend- ficiency of automobiles by just 3 miles ration in the ANWR. The Department ment. per gallon, we would save a million of Energy has estimated, and the chair- I consider this one of the most impor- barrels of oil a day, five times the man quoted today, between 1 and 2 mil- tant environmental votes Congress will amount we would get out of ANWR. Or, lion barrels of oil a day could be de- cast this year, the vote to protect the if just California increased their use of rived from this source. Arctic National Wildlife Refuge from currently available clean diesel tech- Unfortunately, this legislation, oil and gas drilling. nology cars, pickups and SUVs just to passed by the House and the Senate, According to the U.S. Geographical the levels seen in Europe today, just was vetoed by President Clinton. That Survey, this area would produce far California could save 110 million gal- was nearly 10 years ago. Given a time less oil than the U.S. consumes in a lons of gasoline by the year 2010. line of 7 to 14 years for building a pipe- single year, and is the only conserva- So this vote is not about oil, it is line structure, it is time that we could tion area that protects a complete about our values and how we balance scarcely afford. spectrum of Arctic and sub-Arctic eco- the value we place on a critical envi- Just like the other gentleman from systems in North America. ronmental resource and its ecosystems, California, I have been to ANWR. The The ecosystem will be seriously dam- and the value we place on exploration vast coastal plain is unsuitable for hab- aged by drilling in the ANWR, make no in a low-yield area. Indeed, it is about itation during the summer months be- mistake about it. Roads, pipelines, prudent stewardship. cause of the marshy consistency. Any drilling platforms and communities to Mr. POMBO. Mr. Chairman, I reserve caribou unlucky enough to calve in support personnel all involve dis- the balance of my time. this region would likely die from turbing this critical natural habitat by Mr. MARKEY. Mr. Chairman, I yield exsanguination at the hands of the moving a great deal of extremely myself the balance of the time. mosquitoes there. heavy equipment across fragile lands, The Acting CHAIRMAN. The gen- The people in ANWR are counting on by locating multi-ton rigs and whole tleman from Massachusetts has 2 min- this Congress to do the right thing and communities of people to support the utes remaining. allow them, the rightful owners of drilling operation on this fragile land Mr. MARKEY. Mr. Chairman, this is these mineral rights, to begin devel- base. a huge moment for this Congress. In- oping the sources that were granted to Drilling supporters claim that every- side of the Republican bill that we are them upon statehood in 1959. thing can be done in the refuge using voting on is a continuation of the Mr. MARKEY. Mr. Chairman, I yield ice roads and platforms. But even if ice $35,000 tax break to purchase Hummer 1 minute to the gentleman from New roads did not melt in summer months, IIs, a tax break to buy a Hummer II, Mexico (Mr. UDALL). the reality is that there is simply not $35,000. And then they turn with poli- Mr. UDALL of New Mexico. Mr. enough water in the refuge to create cies like that and they say, We need Chairman, I thank the gentleman from the roads and platforms necessary to more gasoline in America. And they Massachusetts for his leadership on drill in the ANWR refuge. turn to an Arctic wildlife refuge as the this issue. Just building 1 mile of road takes a first example of where they will go, I see a far different place than the million gallons of water. There are rather than saying, Well, you know, if two gentlemen that have spoken before only eight lakes scattered across the our country could put a man on the us from the opposition. When I went up refuge containing enough unfrozen moon in 1969, if we could deploy the to the Arctic National Wildlife Refuge, water to build a mile or more of ice Internet around the world in the last 15 I saw a tremendously diverse area in roads. That means the only alternative years, if we could craft a human ge- terms of wildlife. I saw musk oxen, truly is permanent gravel roads criss- nome, then maybe we could find a way grizzly bears, Arctic char, and this crossing the refuge and, in fact, there to reinvent the automobile and the marvelous caribou herd, which is the is not one oil field in Alaska’s North SUV so that it would average more largest in North America, migrate to Slope that does not have permanent than 23 miles per gallon, 1983s average; cross the area that we are talking gravel roads. that is the average we have today. about drilling in. So there is a far dif- Some drilling supporters cite the It is wrong, it is immoral for this ferent area than is being described. central Arctic caribou herd as illus- Congress not to have any fuel effi- One of the things that has not been trating that the caribou and drilling ciency standards for automobiles or mentioned here is, two native tribes can coexist harmoniously. But calving SUVs in their bill, to continue tax depend on the migration of these car- females have completely withdrawn breaks, giving incentives for Ameri- ibou, and they have asked the Congress from the drilling area around Prudhoe cans to purchase the most inefficient and they have asked the State of Alas- Bay and are declining around the vehicles, and to then turn to the wil- ka to stand up for them and to say, We Kuparak complex. While there is ample derness areas and say, We need the en- do not want to have the destruction of area for the central Arctic herd to ergy. this migration, because their liveli- move away from the drilling facilities America is great because its people hood depends on having caribou, and for calving and still be supported, this are great, and what makes us great is their entire existence rotates around is not the case for the porcupine car- we are technological giants. We have that. ibou herd. They are a much larger herd only 3 percent of the oil reserves in the So I would urge my colleagues to and the coastal plain where they calve world, but with our brains, we can support the Markey amendment and is much smaller. They would be dis- make vehicles that are twice as effi- vote down this dangerous energy bill. placed into the foothills where both cient as the ones that we use today, if

VerDate jul 14 2003 04:53 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00186 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.125 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2339 we put our minds to it. But the Bush This is an important amendment, be- Mr. CROWLEY. Mr. Chairman, this debate administration and the Republican ma- cause when we talk about energy inde- comes down to Fact v. Fiction. jority are completely and totally op- pendence, a big part of energy inde- Fiction—The other side argues that drilling posed to it. They reject it in their leg- pendence is developing our energy re- in pristine areas will lower gas prices. islation today. Yet, they say they have sources. It is not about all of these pie- Fact—The President’s top counselor Dan a solution for the energy crisis in in-the-sky ideas that we keep hearing Bartlett said this week that there is no magic America. about. What this is about is developing wand to reduce gas prices. Well, you cannot put 70 percent of all our own resources here at home, pro- Fiction—Opening ANWR will relieve the of the oil in gasoline tanks, have no viding jobs here at home, and keeping U.S. from turning to foreign sources. improvement in fuel economy stand- hundreds of millions of dollars a year Fact—This bill makes our country more de- ards, and then say you are solving the here at home. That is the effort that pendent on fossil fuels from places like the problem by going to wilderness areas this committee is making; that is the Mid-East as scientists of all ideologies have and spoiling them. effort that we put in. stated that the limited amount of oil will not re- Vote ‘‘aye’’ on the Markey amend- Passing the Markey amendment sult in a lessening of oil dependency for the ment. would be a huge mistake. If we had U.S. Mr. POMBO. Mr. Chairman, I yield been able to do this before, we would be Fiction—Opening ANWR will weaken OPEC myself the balance of the time. producing that oil now. and strengthen the U.S. The Acting CHAIRMAN. The gen- Vote against the Markey amendment Fact—The Bush administration’s own De- tleman from California has 21⁄2 minutes again. partment of Energy contradicts this point, remaining. Mr. UDALL of Colorado. Mr. Chairman, I when it determined last year that if world oil Mr. POMBO. Mr. Chairman, this is support this amendment. markets continue as they currently do, OPEC always a great debate that we have on I think our colleagues from Connecticut and could ‘‘countermand any potential price impact the energy bill, and I always enjoy the Massachusetts have very well explained why of Arctic Refuge production by reducing its ex- rhetoric of the gentleman from Massa- the amendment should be adopted. ports by an equal amount?’’ On that, I don’t think there is a need to try chusetts (Mr. MARKEY) and his ability Fact—Drilling in ANWR will not lower gas to speak to the issues that he is so pas- to add to what they said except to say that the prices at the pump; will not protect our na- sionate about. amendment will protect one of the most spe- tional sovereignty, and will not reduce our de- I have been to ANWR. I have been up cial places in our country without much real pendence on foreign oil. there in the wintertime when it was 40 cost in terms of our ability to maintain needed Fact—Vote for Markey-Johnson. degrees below zero; I have been there energy supplies. Mr. SHAYS. Mr. Chairman, I rise in strong But I do want to take just a moment to add when it was the summertime and it support of the Markey-Johnson Amendment to a personal note. protect the Alaska National Wildlife Refuge. had warmed up to 32. And I agree with As Congress has debated this and similar the gentleman from Massachusetts on The coastal plain of ANWR is the last major energy bills, there has been some discussion part of the North Slope that has not been de- one point, and that is that it is a very of the history of the Alaska Lands Act and unique place that deserves to be pro- veloped. In my judgment, it would be far better how its authors might vote if they were still to develop prudent and lasting alternate fuel tected. I believe that it is one of the Members of Congress. most important areas that we have in energies than to risk irreparable damage to Some have even suggested that my father, the wilderness of one of North America’s most Alaska, and throughout the country, Mo Udall, would oppose this amendment and because of its uniqueness. beautiful frontiers. support opening the coastal plain to drilling. The reason the ANWR ‘‘solution’’ seems so But the argument that the gen- That’s an interesting thought. Of course, all simple is because it’s too good to be true. It tleman from Massachusetts (Mr. MAR- we really know is that if things were different, won’t fix our energy problems—with so little oil KEY) and those who support his amend- they would be different. ment continue to make is that we have But I have my own opinion on the subject— available up there, it couldn’t possibly, as it to choose between energy production and I think speculation along those lines is not will take a decade to get the oil down here. and protecting our environment, and based on history. That time would be far better spent developing we do not. It is a false choice. We keep I think that the prime sponsors of the Alaska clean, renewable energy sources that will pro- hearing this over and over again. Lands Act, including my father, would support vide infinite energy without imperiling our last Currently, there are about 120 wild- the Markey-Johnson amendment. remaining wilderness areas. Even a modest life refuges that have some kind of oil Of course, that isn’t really the point, any- increase in CAFE standards would save more and gas development in them. This is way—the real issue before us isn’t about the oil than would be produced by drilling in not a wilderness area, as the gentleman past, but about the future. ANWR. from Massachusetts (Mr. MARKEY) And it is up to us—not our predecessors— We simply won’t have a world to live in if we keeps talking about, it is a wildlife ref- to decide, not just for ourselves but for our continue our neglectful ways. What we really uge. And the area that we are talking children and their children. need to ask ourselves is: how can we square about doing gas and oil exploration in But if people want to consider some words legitimate environmental concerns with our ex- was reserved by Congress for that pur- from the past, I would direct their attention to panding energy needs? pose. the original Committee report on the Alaska Mr. Chairman, drilling in the Arctic Refuge is We do not have to choose between Lands Act, dated April 7, 1978. the wrong answer to the right question. I urge having a vibrant economy, we do not On page 149, the report points out that ‘‘the my colleagues to vote yes on the Markey- have to choose between providing the Committee has noted the eloquent statements Johnson Amendment. The Acting CHAIRMAN. All time has energy resources for our country and of a number of prominent Alaskans’’ about the expired. protecting our environment. We can do idea of building a pipeline across the coastal The question is on the amendment both. There is no reason why we can- plain. ‘‘For example,’’ the report continues, ‘‘Sen- offered by the gentleman from Massa- not. ator Ted Stevens . . . told the Council on En- chusetts (Mr. MARKEY). They talk about the 700,000 jobs that vironmental Quality that ‘Some have appro- The question was taken; and the Act- this will produce, and if it is that priately compared [that idea] with slicing a ing Chairman announced that the noes many, that is American jobs. But that razor lade across the face of the Mona Lisa.’’ appeared to have it. is money that is being sent to foreign I think that is a good summary of what could Mr. MARKEY. Mr. Chairman, I de- countries right now, that will be kept happen if we do not adopt this amendment. mand a recorded vote. in this country. We have 3,000 union I am not saying that Senator STEVENS would The Acting CHAIRMAN. Pursuant to members that are on Capitol Hill today support the amendment—I am sure he clause 6 of rule XVIII, further pro- lobbying against the Markey amend- wouldn’t. ceedings on the amendment offered by ment, because they know it means jobs I am saying that I think he aptly described the gentleman from Massachusetts to them. But they also know that it what will happen if the coastal plain is opened (Mr. MARKEY) will be postponed. means that they will have to pay less to drilling. in the future for gasoline than they And that is why I will vote for this amend- b 1815 would if the Markey amendment ment, and why I urge its adoption by the The Acting CHAIRMAN (Mr. SIMP- passes. House. SON). It is now in order to consider

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00187 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.126 H20PT1 H2340 CONGRESSIONAL RECORD — HOUSE April 20, 2005 amendment No. 4 printed in House Re- yield as he might see appropriate fact, are not requirements but, rather, port 109–49. amongst his colleagues. an illusion. AMENDMENT NO. 4 OFFERED BY MR. BOEHLERT The Acting CHAIRMAN. Is there ob- I would urge my colleagues to vote Mr. BOEHLERT. Mr. Chairman, I jection to the request of the gentleman against the amendment. It is opposed offer an amendment. from Michigan? by people who want jobs, who are con- The Acting CHAIRMAN. The Clerk There was no objection. cerned about the economic welfare and will designate the amendment. Mr. BOEHLERT. Mr. Chairman, I well being of the country, and the auto The text of the amendment is as fol- yield myself 1 minute. Mr. Chairman, workers. lows: let me make several quick points. Mr. Chairman, I reserve the balance of my time. Amendment No. 4 offered by Mr. BOEH- First, we cannot become less dependent LERT: on foreign oil unless we increase the Mr. MARKEY. Mr. Chairman, I yield In title VII, at the end of subtitle E, add fuel economy of our vehicles. 30 seconds to the gentleman from the following: We are importing 14 million barrels Washington State (Mr. INSLEE.) Mr. INSLEE. Mr. Chairman, I would, SEC. 775. AVERAGE FUEL ECONOMY STANDARDS. of oil every day. Cars and light trucks (a) PURPOSE.—The purpose of this section consume 9 million barrels of oil every just in support of this amendment, re- is to seek to save each year after 2014 10 per- day, and consumption is going up not port how successful our country has cent of the oil that would otherwise be used down. We are on a collision course with been previously with this experience. I for fuel by automobiles in the United States disaster. want to point to a graph showing our if average fuel economy standards remained Second, we have been losing ground fuel efficiency in 1975, that when we at the same level as the standards that apply were adopting fuel efficiency stand- for model year 2007. on fuel economy. We use more gas to drive a mile today than we did 20 years ards, rocketed up and almost doubled (b) IN GENERAL.—Section 32902 of title 49, to 1985, then stopped when we lost our United States Code, is amended by redesig- ago. Third, this amendment would cut, nating subsections (i) and (j) in order as sub- would cut U.S. consumption by 2 mil- commitment to fuel efficiency. And subsequently it has plateaued; it sections (j) and (k), and by inserting after lion barrels a day by 2020, more of a has actually gone down. The average subsection (h) the following: savings than any other single source in fuel efficiency today is less than it was ‘‘(i) STANDARDS FOR MODEL YEARS AFTER the bill. 2007.—The Secretary of Transportation shall in 1985. I want to point this out, be- Fourth, the National Academy of prescribe by regulation average fuel econ- cause it shows an American success Sciences said that full economy can be omy standards for automobiles manufac- story. We were successful in driving increased ‘‘without degradation of safe- tured by a manufacturer in model years after safe, efficient, fuel-efficient cars. And ty.’’ A representative of the Alliance of model year 2007, that shall— we got off the fuel-efficiency wagon. ‘‘(1) ensure that the average fuel economy Automobile Manufacturers confirmed It is time to go back. We cut a deal achieved by automobiles manufactured by a at a recent Science Committee hearing with Canada the other day. We can do manufacturer in model years after 2014 is no that I chaired that CAFE could be in- less than 33 miles per gallon; it in America. creased without compromising safety. Mr. UPTON. Mr. Chairman, I yield 2 ‘‘(2) ensure that improvements to fuel Finally, the biggest beneficiary of economy standards do not degrade the safety minutes to the gentleman from Texas of automobiles manufactured by a manufac- this amendment will be the consumers. (Mr. BARTON), the chairman of the pow- turer; and They are sick and tired of paying sky- erful Energy and Commerce Com- ‘‘(3) maximize the retention of jobs in the rocketing prices for gasoline, $40 to $50 mittee. automobile manufacturing sector of the to fill up. They want relief. This (Mr. BARTON of Texas asked and United States.’’. amendment offers them hope that we was given permission to revise and ex- (c) CONFORMING AMENDMENTS.—Such sec- are doing something about it. tend his remarks.) tion is further amended— Finally, support this commonsense Mr. BARTON of Texas. Mr. Chair- (1) in subsection (c)(1) in the first sentence science-based amendment that will by inserting ‘‘and subsection (i)’’ after ‘‘of man, I rise in opposition to this amend- this subsection’’; and help the Nation while leaving more ment. You could classify this amend- (2) in subsection (k) (as redesignated by money in consumer’s pockets, theirs ment as the darn-the-people amend- subsection (a)) by striking ‘‘or (g)’’ and in- not ours. ment, and we are going to tell them serting ‘‘(g), or (i)’’. Mr. DINGELL. Mr. Chairman, I yield what they want to do, not what they The Acting CHAIRMAN. The gen- myself 1 minute. really want to do. We are going to tell tleman from New York (Mr. BOEHLERT) (Mr. DINGELL asked and was given them that they have to do something and a Member opposed each will con- permission to revise and extend his re- whether they want to or not. trol 10 minutes. marks.) I would list as Exhibit A the parking The Chair recognizes the gentleman Mr. DINGELL. Mr. Chairman, I know garage of the Cannon Office Building or from New York (Mr. BOEHLERT). the amendment is offered with the best the Rayburn Office Building or the Mr. BOEHLERT. Mr. Chairman, I of good will. It is nonetheless a bad Longworth Office Building. There are yield 5 minutes to the gentleman from amendment which is going to cost this cars and trucks on the market today Massachusetts (Mr. MARKEY), and I ask country jobs. I urge my colleagues to that meet the standards that would unanimous consent that he be able to oppose it. have to be met if this amendment were control that time. The amendment appears to say that to become law. I doubt that the con- The Acting CHAIRMAN. Is there ob- it would only require CAFE to be fixed gressional fleet meets that standard, jection to the request of the gentleman at 33. In point of fact, it would be re- because we, like everybody else, want from New York? quired, because of the language in the some convenience and want some There was no objection. amendment, to properly go to 36 miles power under the hood. The Acting CHAIRMAN. The gen- per gallon. If you like driving around But if you want a car or truck that tleman from Massachusetts will be al- in small cars, this will assure that that gets 35 or 36 miles a gallon or 40 miles lotted 5 minutes and will control the 5 will be all that you will have. a gallon or more, you can buy it today. minutes. I will point out who opposes it: AFL– How many of us do that? I have had Does the gentleman from Michigan CIO, Farm Bureau, United Auto Work- one vehicle that my son actually (Mr. DINGELL) claim the time in opposi- ers, National Automobile Dealers, and bought; it was a Nissan Sentra. It prob- tion? hundreds of consumers who buy com- ably got 35 miles to the gallon on the Mr. DINGELL. I am opposed to the fortable cars which are big enough so highway. When he got through with it amendment. that they can take their family and bought himself a little bit bigger, The Acting CHAIRMAN. The gen- around. more fancy vehicle, he let me drive it, tleman from Michigan (Mr. DINGELL) The amendment would purport to and I brought it up here, used it as my will be recognized for 10 minutes. have the agency which would fix fuel car for a while. My staff was so embar- Mr. DINGELL. Mr. Chairman, I ask economy standards to in fact consider rassed: it did not have an air condi- unanimous consent to yield 5 minutes both jobs, safety and other questions tioner; it was a standard transmission. to the gentleman from Michigan (Mr. like that. In point of fact, there is no I could hardly get them to get in the UPTON) and that he be permitted to requirement. So those requirements, in car.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00188 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.128 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2341 But I did have one vehicle in my life Mr. DINGELL. Mr. Chairman, I yield Mr. UPTON. Mr. Chairman, I yield 1 that would have met the standard that 1 minute to the distinguished gen- minute to the gentleman from the is in this bill. I represent an assembly tleman from Michigan (Mr. KILDEE). great State of Michigan (Mr. ROGERS). plant in Arlington, Texas, a UAW Mr. KILDEE. Mr. Chairman, I rise Mr. ROGERS of Michigan. Mr. Chair- plant. I doubt very many of those folks today to oppose the Boehlert-Markey man, you know you cannot make a fat actually vote for me because I am a Re- amendment to the energy bill. This un- guy skinny by mandating smaller pant publican and most of them are not, but necessary amendment would hurt our sizes. People have to want to buy the they have a right to make the Chev- already struggling economy. It threat- vehicle that you are trying to sell rolet Tahoes and the Cadillac ens the jobs of workers in Flint, Bay them. There is a reason that moms go Escalades, because a lot of Americans City, Saginaw, and other communities through the pain and agony of buying want to drive that vehicle. in my congressional district and in my an SUV and a mini-van, because they I am not going to go down and tell home State of Michigan. are safe, because they can get their them, you cannot make that vehicle It undermines the hard work of our whole family in there, because they because it does not meet these fuel-ef- auto companies and auto workers that can put a bike in the back, and they ficiency standards. Let the market de- is being made through the investment can get all the groceries in there. cide. If America wants more fuel-effi- of billions of dollars in alternative They buy them because they want cient vehicles, they are available in the fuels and advanced technology vehi- them and they are safe. The auto- marketplace today. cles. The drastic increases called for in mobile companies today do not get We do not need a government fiat this amendment would have negative enough credit for all of the money they telling them that that is the only vehi- consequences for passenger safety and are investing in trying to make these cle that they can purchase. Vote consumer choice. things efficient. Believe me, if they against this amendment. The National Highway Traffic Safety could get 40 miles to the gallon in an Mr. BOEHLERT. Mr. Chairman, I Administration has increased CAFE SUV, they would be on these front yield 30 seconds to the gentleman from standards, which is their obligation. steps having a press conference selling Connecticut (Mr. SHAYS). Clearly, the current process, Mr. Chair- these things. Technology has not Mr. SHAYS. Mr. Chairman, I rise in man, is working. Opposing this amend- matched what consumers want. Let strong support of the Markey-Boehlert, ment protects jobs, passenger safety, them do that. You artificially interfere et al amendment. People used to own consumer choice, and advancing auto with where we are going, they are mak- slaves and we look back and say how technology. ing huge strides. To do this costs could they? Future generations will I urge my colleagues to oppose this Americans jobs. It costs Americans say we destroyed the environment and amendment. jobs. how could we? Let them do what they are doing Mr. MARKEY. Mr. Chairman, I yield Let us conserve, let us see oil prices best, and innovate their way to those 11⁄2 minutes to the gentleman from New go down as we stop wasting what we high-mileage SUVs and mini-vans so Jersey (Mr. MENENDEZ), the chairman have. SUVs, mini-vans, and trucks moms do not have to drive Mini Coo- of the Democratic Caucus. need to get better mileage; and we need pers. to tell the automobile manufacturers Mr. MENENDEZ. Mr. Chairman, I Mr. BOEHLERT. Mr. Chairman, I to make this happen. rise in strong support of the Boehlert- yield 1 minute to the gentleman from Markey amendment. Despite the bill’s Mr. Chairman, I rise in strong support of the Illinois (Mr. KIRK). support of the amendment to reduce our con- claims to meet our Nation’s energy Mr. KIRK. Mr. Chairman, I believe sumption of oil by increasing fuel economy needs and provide for our Nation’s fu- that this amendment actually saves standards for passenger cars and light trucks. ture, H.R. 6 ignores a pivotal approach American lives. Mr. Chairman, there is This amendment requires the Department of that will reduce our foreign dependence no better way to look at this issue than Transportation to raise fuel economy stand- on oil and alleviate our high oil con- through the eyes of a young soldier ards for automobiles from today’s average of sumption, increasing fuel economy stationed in the Middle East. 25 miles per gallon to 33 miles per gallon by standards. One of the reasons why we pay so 2015. Let us look at what we know. We much attention to the Persian Gulf is Under this amendment, the Administrator of know that fuel economy standards that the economy of the West is totally the National Highway Transportation Safety have helped to reduce our dependence dependent on oil from this region. We Administration will have maximum flexibility in on foreign oil. We know that raising must station forces there to make sure how the standards are set. the standard could the standard to 33 miles a gallon over that nothing happens to our supply of be increased for cars or SUVs or only the the next 10 years, which this amend- energy. heaviest trucks. ment would do, would save 10 percent And nothing can change this situa- Mr. Chairman, I agree with those who say, of the gas we will consume, and we tion right now. But this amendment ‘‘We cannot conserve our way out of this en- know that we have the potential in can change this situation for the fu- ergy problem.’’ However, until we raise CAFE this country to make cars and light ture. By adopting CAFE standards, we standards, we cannot honestly tell the Amer- trucks much more efficiently. will make the Persian Gulf much less ican people this is a balanced energy plan. Mr. Chairman, we need to unlock important. We will reduce the need to It is absolutely imperative we are more effi- that potential. We have the tech- ever deploy young Americans into cient and make better use of our precious re- nology; we have the innovation. De- harm’s way. Look into the eyes of a 10- sources. spite all of this, the bill before us year-old American and think of him or This is a common sense amendment, which makes no effort to increase those her, and vote for policies which will represents a modest step forward in our na- standards. We have a choice: Do we make it much less likely that any tion’s efforts to become more energy efficient. want an energy future that is stagnant President would ever ask them to re- Our amendment will help protect the environ- and dependent on traditional sources, turn to harm’s way in the Persian Gulf. ment, reduce our dependence on foreign oil or do we want a future that will break Mr. DINGELL. Mr. Chairman, I yield and save drivers money at the pump. new boundaries in innovation and tech- 1 minute to the gentlewoman from The United States cannot continue on a nology, reduce our dependency on for- Michigan (Ms. KILPATRICK). course of increased oil consumption with little eign oil, increase conservation and effi- (Ms. KILPATRICK of Michigan asked to no regard for the implications it has on our ciency and ensure the security of our and was given permission to revise and environment, economy and national security. Nation? extend her remarks.) There is no better time to focus on reducing Let us prove that we are serious Ms. KILPATRICK of Michigan. Mr. our reliance on foreign oil than right now. In- about our Nation’s energy future. In- Chairman, I rise in strong opposition creased fuel efficiency standards and tax in- creasing fuel economy standards to this amendment. The National Traf- centives for conservation and renewable en- should be part of the solution and part fic Safety Administration is the body ergy sources should be at the heart of our na- of our National energy policy. And I who sets those standards. There are tional energy policy in a post-September 11 urge my colleagues to vote for the standards. They scientifically set those world. Boehlert-Markey amendment. standards. And sometimes they raise

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00189 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.130 H20PT1 H2342 CONGRESSIONAL RECORD — HOUSE April 20, 2005 them. It is important that we keep Mr. Chairman, in the interest of full With the gentleman from Michigan that responsibility with NTSA who disclosure, I drive a hybrid vehicle. I (Mr. DINGELL) I urge defeat of the does a fine job with that, to set max- did not buy it because of the tax break. amendment. imum feasible levels for the standards I did not buy it because of any legisla- Mr. MARKEY. Mr. Chairman, I yield cars and trucks must use. tion that we passed in this Congress. I 30 seconds to the gentleman from Cali- I want to read from a good friend bought it largely because of air quality fornia (Mr. CARDOZA). here who says, ‘‘Such a proposal would concerns back in my district. But now Mr. CARDOZA. Mr. Chairman, I rise dramatically affect the functionality I look positively brilliant that gasoline today in support of the amendment and and performance of vans, pickup trucks prices are so high. But the best thing in opposition to the underlying legisla- and sports utility vehicles that con- about a hybrid vehicle, Mr. Chairman, tion. sumers in America want.’’ is it allows you that feeling of moral We need to increase our fuel effi- And that is by the United States superiority as you drive your car. ciency if the U.S. is ever going to get Chamber of Commerce. One in 10 jobs Mr. BOEHLERT. Mr. Chairman, I serious about our energy crisis. Last are related to the auto industry. Fuel yield 1 minute to the gentleman from year, Mr. Chairman, I voted for this en- economy standards are set scientif- Pennsylvania (Mr. PLATTS). ergy bill because I thought we needed a national plan, but that was when oil ically, and this body should not get Mr. PLATTS. Mr. Chairman, I rise in was selling at $30 a barrel. into that. support of this bipartisan amendment. If we want a national energy policy This year, when oil is averaging $55 a b 1830 that is truly about economic security barrel and gas prices are nearly $3 a We have standards. The American for all Americans, not just those in the gallon in some places, it is bad public people choose the cars and trucks they auto industry, that is about national policy to add to the national debt, bor- want to drive. I believe that the stand- security for all Americans, it needs to rowing the money to give to companies ards are set fine. And as we go on, the be comprehensive. It needs to be about who are making record profits. The millions of dollars that the industry hybrid vehicles, alternative fuels, re- American people deserve better. has put into new development, new newable fuels. It needs to be about bet- I ask for an ‘‘aye’’ vote. The Acting CHAIRMAN. The gen- cars that are energy efficient we will ter using our resources we have. But it tleman from Michigan (Mr. UPTON) has see as time goes on. Americans are also needs to be about conservation. This amendment is one of the great- 1 minute remaining. working and we are winning. Leave the Mr. UPTON. Mr. Chairman, I yield standards to NHTSA. est steps we can take in the area of going forward in conservation. It is not myself the balance of my time. Mr. MARKEY. Mr. Chairman, I yield Mr. Chairman, I have a trivia ques- about whether you should be able to 30 seconds to the gentlewoman from tion for you. What automaker has the buy an SUV. It is about whether you California (Ms. ESHOO). most vehicles that get a highway fuel should be able to buy an SUV that gets Ms. ESHOO. Mr. Chairman, in a cau- economy of 30 miles per gallon or 27.5 miles per gallon like a car does in- tionary letter to the President last greater? I will give you a hint. They stead of 20.7. It is about choice and effi- month, a group of defense experts in- make 19 of the vehicles, and that is cluding conservatives Robert McFar- ciency. This amendment is a good amend- more than any other automaker. lane, Frank Gaffney, and Boyden Gray Do you know who it is? General Mo- ment. I urge a ‘‘yes’’ vote. I commend said the following: ‘‘With only 2 per- tors. cent of the world’s oil reserves but 25 the prime sponsors of the amendment What frustrates me about this debate percent of current world consumption, for bringing it before the House. is the misconception that CAFE stand- Mr. DINGELL. Mr. Chairman, I yield the United States cannot eliminate its ards are some Holy Grail that foreign 1 minute to the gentleman from Penn- need for imports through increased do- manufacturers can get to, but domestic sylvania (Mr. DOYLE). mestic production alone.’’ (Mr. DOYLE asked and was given ones cannot. We do not need to micro- Our dependence on foreign oil is put- permission to revise and extend his re- manage our auto manufacturers. They ting our country in a perilous situa- marks.) are doing just fine. CAFE standards are tion. I urge my colleagues to support Mr. DOYLE. Mr. Chairman, I would being met and they are being exceeded this amendment because it will move respectfully add my voice to those op- virtually every single day. us away from that perilous addiction posing this amendment. But the more important work is find- to foreign oil and increase efficiency While clearly we all want to reduce ing real alternatives to gasoline-pow- where we use the most oil, and that is our imports of foreign oil, I have not ered cars and developing them, for the automobile industry. been convinced that raising CAFE every dollar we force the auto compa- Mr. UPTON. Mr. Chairman, I yield 1 standards would actually accomplish nies to spend on the CAFE standards is minute to the gentleman from Texas this. As I understand it, our imports’ a dollar they will not spend on hybrids, (Mr. BURGESS). share of oil consumption was 35 percent hydrogen fuel cell and other alter- Mr. BURGESS. Mr. Chairman, I in 1974. Since then, our new car fuel native fuel cell vehicles. stand today in opposition for raising economy has roughly doubled, but our I am sick of hearing the same old de- the CAFE standards. This is an irrele- auto import share has risen nonethe- bate. I want to get us to the point vant piece of legislation that is not less to about 50 percent. For this rea- where we talk about which one of the only unnecessary, it is an outdated so- son, I am not convinced that the new alternatives we are most excited lution in search of a 21st century prob- amendment, if adopted, with achieve about. I urge you to defeat this used amend- lem. one of its primary goals. Changing technology and innovation Additionally, our national economy ment and vote for a new car. Please de- feat this amendment. have rendered this amendment unnec- is struggling, to say the least. In my Mr. Chairman, I yield back the bal- essary. The increasing use of hybrid ve- home State of Pennsylvania, which is ance of my time. hicles shows that a market-based ap- not normally thought of as a State Mr. BOEHLERT. Mr. Chairman, I re- proach to increasing fuel efficiency is a closely tied to the automotive indus- serve the balance of my time. better way to reduce American oil con- try, a total of 220,800 jobs are depend- Mr. DINGELL. Mr. Chairman, I be- sumption than by placing arbitrary ent on the industry; 39,700 of these peo- lieve that I am entitled to close the de- standards on automobiles that harm ple are directly employed by it, and bate? our domestic manufacturers. And, in when you add in other spin-off employ- The Acting CHAIRMAN. The gen- fact, the only thing we get with CAFE ment, we are talking about over 220,000 tleman from Michigan (Mr. DINGELL) is standards down in my district are car jobs in Pennsylvania alone. entitled to close and the gentleman has dealers with acres and acres of tiny Mr. Chairman, in these difficult eco- 1 minute remaining. cars they cannot sell. nomic times, I simply do not think it is Mr. DINGELL. Mr. Chairman, I re- With today’s high gas prices, hybrid prudent to put those jobs and this vital serve the balance of my time. vehicles will help reduce the amount of industry in jeopardy when it is not The Acting CHAIRMAN. The gen- money that our constituents pay at the clear the benefits potentially derived tleman from Massachusetts (Mr. MAR- gas pump. would merit doing so. KEY) has 2 minutes remaining.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00190 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.134 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2343 Mr. MARKEY. Mr. Chairman, I yield sumers. We want them to have their ceedings on the amendment offered by myself the balance of my time. SUVs if that is what they want. We the gentleman from New York (Mr. Mr. Chairman, this is the key issue if want them to have their light trucks if BOEHLERT) will be postponed. we are going to get serious about the that is what they want. We want De- The Acting CHAIRMAN. It is now in imports of oil into our country. troit and the American auto industry order to consider amendment No. 5 We put 70 percent of all oil that we to make more fuel-efficient vehicles. printed in House Report 109–49. consume in America into gasoline Finally, this really offends me, myth AMENDMENT NO. 5 OFFERED BY MRS. JOHNSON tanks. In 1975, we averaged 13 miles per number three: We will sacrifice safety. OF CONNECTICUT gallon; we averaged 13 miles per gallon That is what the opponents say; that is Mrs. JOHNSON of Connecticut. Mr. in 1935. But Congress, because of the not what the National Academy of Chairman, I offer an amendment. energy crisis, passed a law mandating a Sciences says. We already have the The Acting CHAIRMAN. The Clerk doubling of the standards in 10 years, technology on the shelf gathering dust will designate the amendment. and the auto industry responded; and to manufacture more fuel-efficient The text of the amendment is as fol- by 1986, the average was 27 miles per automobiles and light trucks. I say the lows: gallon, and we had OPEC on its back. alarm has been sounded. This is a na- Amendment No. 5 offered by Mrs. JOHNSON The price of oil fell to $12 a barrel. We, tional security issue. of Connecticut: using our technological genius, had We are far too dependent on foreign- In title VII, subtitle E, add at the end the won. source oil. This amendment alone will following new section: Now, it is almost 20 years later and save 2 million barrels a day by 2020 SEC. 775. UPDATE TESTING PROCEDURES. America is now averaging 23 miles per and, in the process, save the American The Administrator of the Environmental consumers that are fed up with a car Protection Agency shall update or revise gallon. We have gone backwards 4 test procedures, Subpart B—Fuel Economy miles per gallon and played into requiring $40 or $50 to fill up. They want more fuel efficiency, and we owe Regulations for 1978 and Later Model Year OPEC’s hands as the price of oil goes Automobiles-Test Procedures 600.209–85 and up to $50 to $55 to $58 a barrel, as con- it to them and to ourselves to deliver 600.209–95, of the Code of Federal Regula- sumers are tipped upside down every it. tions, CFR Part 600 (1995) Fuel Economy time they go into a gas station in order The Acting CHAIRMAN. The gen- Regulations for 1977 and Later Model Year to pay to fill up their car. tleman from Michigan (Mr. DINGELL) Automobiles to take into consideration high- The only answer is to call upon our has 1 minute remaining. er speed limits, faster acceleration rates, Mr. DINGELL. Mr. Chairman, I yield variations in temperature, use of air condi- country’s greatness to improve the fuel the balance of my time to the distin- tioning, shorter city test cycle lengths, cur- economy standards to 33 miles per gal- guished gentleman from Michigan (Mr. rent reference fuels, and the use of other fuel lon by 2015. In other words, to add only STUPAK) to close the debate. depleting features. 6 additional miles per gallon over what Mr. STUPAK. Mr. Chairman, I rise in The Acting CHAIRMAN. Pursuant to was accomplished in 1986. opposition to the amendment. Encour- House Resolution 219, the gentlewoman The opponents of this amendment aging and supporting the development from Connecticut (Mrs. JOHNSON) and a say that is impossible. Well, we put a of innovative new technology is pref- Member opposed each will control 5 man on the moon in 9 years. We im- erable to arbitrary increases in CAFE minutes. proved the fuel economy standards in standards that will truly hurt thou- The Chair recognizes the gentle- 10 years by 13 miles per gallon in the sands of American workers. Moreover, woman from Connecticut (Mrs. JOHN- 1970s and 1980s, but now we are being the National Academy of Sciences re- SON). told that we do not have any longer the port of 2001 indicated that only the Mrs. JOHNSON of Connecticut. Mr. ability to do that. subcompact car segment of our fleet Chairman, I ask unanimous consent to Well, we are 60 percent dependent could be expected to achieve this fuel yield to the gentleman from New Jer- upon imported oil. We are heading to- economy level. sey (Mr. HOLT) 21⁄2 minutes for purposes wards 65 percent, towards 70 percent. This suggests that a substantial por- of control. That is increased national security tion of the vehicles on the road would The Acting CHAIRMAN. Is there ob- problems for our country that we will have to be very small to reach this ob- jection to the request of the gentle- look back at and regret that we missed jective. Reducing our consumption of woman from Connecticut? this opportunity to make our country oil should come from new technology, There was no objection. more secure. not by mandating a standard that re- Mrs. JOHNSON of Connecticut. Mr. Mr. Chairman, I yield back the bal- quires most vehicles to be a sub- Chairman, I yield myself such time as ance of my time. compact. I may consume. Mr. BOEHLERT. Mr. Chairman, how The National Academy of Sciences Mr. Chairman, I rise today in strong much time do I have remaining? also raises concerns about potential in- support of the Johnson-Holt amend- The Acting CHAIRMAN. The gen- creases in highway fatalities if the ment. It is a simple amendment. It is tleman from New York (Mr. BOEHLERT) auto industry is forced into selling a simply truth in advertising, EPA truth has 11⁄2 minutes remaining. greater share of small vehicles. Accord- in advertising. Mr. BOEHLERT. Mr. Chairman, I ing to the analysis of the Insurance In- b 1845 yield myself the balance of my time. stitute of Highway Safety Data in 1999, Mr. Chairman, this is myth versus re- since CAFE standards were first an- For the past 3 decades, American mo- ality. Myth number one: This will cost nounced in 1975, approximately 46,000 torists have been buying cars, relying us jobs, passing this amendment. people died in crashes who would have on miles-per-gallon stickers that gross- ‘‘Jobs’’ is my favorite four-letter word. survived if CAFE had not encouraged ly overestimate the miles per gallon a This is a bunch of nonsense. The re- smaller, lighter cars. car can get. For some vehicles, the ad- ality is, the new standards, if they are I am concerned that this amendment vertised miles per gallon is off by as enacted into law, Americans will buy would lead to more unnecessary fatali- much as 30 percent. more, not fewer, vehicles because they ties. For these reasons, I urge a ‘‘no’’ With gas at $2 a gallon and some cars will be more fuel efficient. vote on this amendment. costing more than my husband and I Myth number two: CAFE standards The Acting CHAIRMAN. The ques- paid for our first home, such false in- will force Americans into smaller vehi- tion is on the amendment offered by formation is simply intolerable, and it cles. The reality is, we heard that argu- the gentleman from New York (Mr. is intolerable that our tax dollars are ment first back in 1975. The opponents BOEHLERT). paying for the EPA to develop false and said, If you adopt this new standard, The question was taken; and the Act- misleading information. all Americans will be driving compacts ing Chairman announced that the noes The auto makers are not at fault; or subcompacts in 10 years. What has appeared to have it. neither are the oil companies. It is our happened? The record is bigger and big- Mr. BOEHLERT. Mr. Chairman, I de- own government. That is the culprit, ger vehicles all over the place. mand a recorded vote. and we cannot tolerate EPA providing The fact of the matter is, we do not The Acting CHAIRMAN. Pursuant to wildly inaccurate miles-per-gallon in- want to take away choice from con- clause 6 of rule XVIII, further pro- formation in the future.

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00191 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.143 H20PT1 H2344 CONGRESSIONAL RECORD — HOUSE April 20, 2005 The way to change this is simple. We sumers fair and accurate information The Acting CHAIRMAN. The gen- simply have to modernize the testing when they go into a showroom or are tleman may offer his amendment to procedures that EPA uses. The EPA thinking about purchasing a new vehi- the amendment at any time during de- uses 30-year-old testing standards. The cle. She states, and I agree, that the bate on the Johnson amendment. EPA assumes that highway drivers consumer has a right to know what the Mr. BARTON of Texas. At any time. never exceed 50 miles an hour; but of fuel economy is of that particular vehi- The Acting CHAIRMAN. The gen- course, they do, and the faster they cle; and under current law, the way the tleman from Texas (Mr. BARTON) is rec- drive, the more wind resistance they tests are conducted, there is some dis- ognized. get and the lower fuel economy they crepancy, as she has pointed out in her Mr. BARTON of Texas. Mr. Chair- achieve. statement in support of her amend- man, I reserve my time. The EPA also assumes that the rate ment. Mr. HOLT. Mr. Chairman, I yield 45 at which drivers brake and accelerate Having said that, there are those seconds to the other gentlewoman from has not changed over 30 years. Even that have reviewed her amendment and California (Mrs. DAVIS). though the cars have changed dramati- think that it could be a backdoor ap- (Mrs. DAVIS of California asked and cally and so have the driving habits. proach to CAFE standard increases. We was given permission to revise and ex- They do not notice that driving in cit- just had the debate on the Boehlert- tend her remarks.) ies is entirely different with its stop- Markey amendment. I voted in the neg- Mrs. DAVIS of California. Mr. Chair- and-go traffic and traffic jams than it ative on that, and I think when that man, I support this bill so that we can, used to be 30 years ago. rollcall is called, the majority of the and the public can, rely on the energy- So our amendment is really simple, House is going to be in the negative. So conscious information that they are straightforward, and common sense. It I know that is not the intent of the getting and that they know that is cor- mandates that EPA update the tests gentlewoman’s amendment, but there rect and accurate, and they can move used in determining estimated fuel- are some that think it could be. forward with that. economy ratings to reflect real-world We are going to oppose this amend- Mr. Chairman, Members, are your constitu- driving habits of American motorists. ment and support the gentleman from ents also asking you what you are doing about This is an important little amend- Michigan’s (Mr. ROGERS) amendment in high gas prices? We must answer that ques- ment. It is a pocketbook issue. New the nature of a substitute or amend- tion in this bill. cars are expensive. Gasoline is expen- ment to the Johnson amendment. I Individuals can do something about their sive. People can buy whatever car they think at the end of the day, the House gasoline consumption when they select a car want, that is their right; but they is going to work its will, and the gen- to buy. We need to help them. should have accurate information on tlewoman from Connecticut (Mrs. People expect that, when they look at the which to base their choice, and their JOHNSON) is going to be happy and the window sticker, the miles per gallon figures tax dollars should not be spent for false gentleman from Michigan (Mr. ROGERS) that the EPA supplies are what they will get and misleading information. is going to be happy and the consumers when they purchase the car. So I urge the support of my amend- of America are going to be happy when They are not. ment. When one of my staff members complained Mr. Chairman, I reserve the balance they go into showrooms a year or two from now and see these new window la- to the car dealer that the gas mileage figures of my time. were way off for City Driving for the car she The Acting CHAIRMAN (Mr. SIMP- bels that show what the fuel economy is. had selected for its fuel efficiency, the dealer SON). The gentlewoman from Connecti- said, ‘‘Oh, that doesn’t apply to driving in DC.’’ 1 Mr. Chairman, I reserve the balance cut’s (Mrs. JOHNSON) 2 ⁄2 minutes has I support this amendment because it would expired. of my time. Mr. HOLT. Mr. Chairman, I yield 45 require the EPA to correct the long-standing Mr. BARTON of Texas. Mr. Chair- inaccuracies in its testing procedures. man, I rise in mild opposition to the seconds to the gentlewoman from Cali- fornia (Ms. WOOLSEY). Our constituents must be able to rely on Johnson amendment. these facts to be the energy-conscious con- The Acting CHAIRMAN. The gen- Ms. WOOLSEY. Mr. Chairman, I won- der how many Americans have bought sumers they want to be. tleman from Texas (Mr. BARTON) is rec- AMENDMENT NO. 6 OFFERED BY MR. ROGERS OF ognized for 5 minutes. a car and wondered why their gas mile- MICHIGAN TO AMENDMENT NO. 5 OFFERED BY Mr. BARTON of Texas. Mr. Chair- age was not what had been advertised. MRS. JOHNSON OF CONNECTICUT man, I yield myself such time as I may Well, it is because the fuel economy numbers advertised by automobile Mr. ROGERS of Michigan. Mr. Chair- consume. man, I offer an amendment to the (Mr. BARTON of Texas asked and manufacturers are based on 30-year-old amendment. was given permission to revise and ex- fuel economy tests, tests that have not The Acting CHAIRMAN. The Clerk tend his remarks.) been adjusted for today’s realities, and Mr. BARTON of Texas. Mr. Chair- that leads Americans to be regularly will designate the amendment to the man, I said mild opposition because it misled by inaccurate labels. amendment. The text of the amendment to the is exactly what it is. I chair the com- The automobile industry has changed amendment is as follows: mittee of jurisdiction that would have significantly over the last 3 decades, this amendment, and we have been but the EPA standards are stuck in the Amendment No. 6 offered by Mr. ROGERS of Michigan to amendment No. 5 offered by working with the Congresswoman from past, overestimating fuel economy Mrs. JOHNSON of Connecticut: Connecticut to try to perfect her data. In the matter proposed to be inserted by amendment. She has been very gra- I support this amendment. It will re- the amendment, strike ‘‘test procedures’’ cious to come up to me on the floor, quire the EPA to update its testing and all that follows through ‘‘Later Model and then her staff and committee staff standards so that consumers will have Year Automobiles-Test Procedures’’ and in- have been working, and we really accurate fuel economy information in sert ‘‘the adjustment factors in sections’’. thought that earlier in the week or the future. The Acting CHAIRMAN. Pursuant to late last week we had an amendment PARLIAMENTARY INQUIRY House Resolution 219, the gentleman that everybody could agree to. For var- Mr. BARTON of Texas. Mr. Chair- from Michigan (Mr. ROGERS) and the ious reasons, that was not agreed to, so man, parliamentary inquiry, since the gentlewoman from Connecticut (Mrs. we have the situation today. Rogers amendment, which is next in JOHNSON) each will control 5 minutes. At the close of this debate, the gen- line, amends, or perfects, the Johnson The Chair recognizes the gentleman tleman from Michigan (Mr. ROGERS), a amendment, does the gentleman from from Michigan (Mr. ROGERS). member of the committee of jurisdic- Michigan (Mr. ROGERS) have to seek Mr. ROGERS of Michigan. Mr. Chair- tion, is going to offer a perfecting recognition to offer his amendment be- man, I yield 2 minutes to the distin- amendment to the Johnson amend- fore the close of debate on the gentle- guished gentlewoman from Michigan ment. I am going to support that at the woman from Connecticut’s (Mrs. JOHN- (Ms. KILPATRICK). appropriate time. SON) amendment, or does he wait until (Ms. KILPATRICK of Michigan asked We support the goal of the Johnson her debate concludes and then offers and was given permission to revise and amendment. She is trying to get con- his amendment? extend her remarks.)

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00192 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.148 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2345 Ms. KILPATRICK of Michigan. Mr. The Rogers/Kilpatrick perfecting amendment proposing to do, rather than getting at Chairman, I thank the gentleman for makes clear that the objective is to change the the heart of the problem, which is that yielding me time. fuel economy label values—NOT the test pro- the tests are not done in a realistic We rise to make this a better amend- cedures. This will ensure that this measure will way. ment. If we want EPA to do the test- improve consumer information regarding mile- The tests do not reflect the way peo- ing, to make sure that things are right age without imposing an increase in the strin- ple actually drive. The tests suggest and labeling is correct, then we want gency of CAFE or creating a second fuel that highway speeds are 48 miles per to make sure that there is one test to economy test for consumer labeling. hour with a top speed of 60. Has any- do that. What we do not want to do is The Johnson amendment COULD threaten body been on the road recently? That is put additional funds, additional costs, to increase the stringency of CAFE. not the way people drive. additional measures on the auto indus- The Johnson amendment would require The tests suggest that congestion try that is already very fragile. EPA to change fuel economy testing for label and stop-and-go traffic is a minor part So we rise in opposition to the John- purposes. of driving. By 2001, congestion took son amendment and ask that our If the intent of this change is to create a about 26 hours per year out of a per- amendment be considered because the new test for fuel economy labeling then the son’s driving time. That is not realisti- testing is there. We do not need to have burden on automakers to test vehicles for both cally reflected in the testing method. two tests, as is required by the Johnson CAFE and fuel economy labeling would in- The testing method assumes gentle amendment. It doubles the cost for crease substantially. acceleration and braking. That is not product, and it allows the competition If, however, the intention is to retain only the way city driving is done. to be more advanced in our competi- one vehicle fuel economy test, then the test The tests suggest or require that tion war than we are now considering. protocol currently used for determining CAFE there be no air conditioning, and it The auto industry in America is frag- values will also be affected—lowering the fleet overestimates trips. ile. We all know that they have in- fuel economy averages of manufacturers and In other words, the tests are wrong. vested millions of dollars in their prod- making compliance with the CAFE standards The tests should be modified to reflect ucts to make them better, make them more stringent. the way people actually drive. Using a fuel efficient, do alternative energy Depending upon the test procedure changes fudge factor, a multiplier will hide the sources. implemented, the stringency of the CAFE actual differences between cars, and it We believe that our amendment is a standards could increase by 10–20% (or up to will obscure what this is about, which perfecting one; and, yes, it requires a 6 mpg increase in the stringency of the is giving consumers accurate informa- that the EPA do the proper tests, not CAFE requirements). tion. two times but the one time that is re- The Acting CHAIRMAN. The gentle- It is certainly the case that for a gov- quired and that the labeling be accu- woman from Connecticut controls the ernment-mandated test we should get rate. time in opposition to the amendment. it right. That is all we are suggesting, We hope that our colleagues will sup- Mrs. JOHNSON of Connecticut. Mr. and this amendment that the gen- port this Rogers-Kilpatrick amend- Chairman, I reserve the balance of my tleman from Michigan (Mr. ROGERS) ment. It is a much better amendment, time on the Rogers amendment so that has may technically, under parliamen- and again works with EPA to make we can move on to the gentleman from tary terms, be called a perfecting sure that the labeling is correct with New Jersey’s (Mr. HOLT) comments on amendment. In fact, it completely the one test. our amendment. changes the nature of what we are try- Consumers deserve to know that the sticker The Acting CHAIRMAN. We are cur- ing to do, which is to give consumers in their window actually reflects the mileage rently on the Rogers amendment. accurate information. they will get on the road. Mr. HOLT. That is fine, if the gentle- The Acting CHAIRMAN. The Chair The EPA should revisit their fuel economy woman would yield. would clarify for the Members, on the standards and the Rogers/Kilpatrick amend- Mrs. JOHNSON of Connecticut. Mr. underlying amendment, the gentle- ment would require the EPA to change the ad- Chairman, I yield 2 minutes to the gen- woman from Connecticut (Mrs. JOHN- justment factors that it currently uses to make tleman from New Jersey (Mr. HOLT) on SON) has 21⁄2 minutes remaining. The the fuel economy label accurate. the Rogers amendment. gentleman from Michigan (Mr. ROGERS) ANCY OHNSON 1 N J ’s amendment requires the Mr. HOLT. Mr. Chairman, it is my has 3 ⁄2 minutes remaining. EPA to change the ‘‘testing procedures’’ that understanding that I also have 1 On the amendment by the gentle- auto companies use to determine the fuel minute remaining on the underlying woman from Connecticut, the gen- economy numbers that go on the dealer label. amendment. tleman from Texas (Mr. BARTON) has Her amendment would require two test auto 1 The Acting CHAIRMAN. The gen- 2 ⁄2 minutes remaining. The gentleman companies to do one test for labeling and a 1 tleman from New Jersey (Mr. HOLT) from New Jersey (Mr. HOLT) has 1 ⁄2 separate test for CAFE. has 11⁄2 minutes remaining. minutes remaining. The gentlewoman JOHNSON’s language doubles the cost to the Mr. HOLT. Mr. Chairman, I thank from Connecticut’s (Mrs. JOHNSON) companies. the gentlewoman for the time. time has expired. The Rogers/Kilpatrick amendment deals When you go to the showroom to PARLIAMENTARY INQUIRIES with the need for improved dealer label accu- pick out a new car, the sticker in the racy while only requiring one test. Mr. BARTON of Texas. Mr. Chair- Instead of requiring EPA to change the window has a number for city mileage, man, could I ask a parliamentary in- ‘‘testing procedures’’ the Rogers/Kilpatrick highway mileage. You would like to quiry. Before we go to the gentleman amendment requires the EPA to change the think that that bore some relationship from Michigan, when it comes time to ‘‘adjustment factors’’ that EPA currently uses to reality. Now, on the television ads, vote, are we going to vote on the Rog- to make the fuel economy label accurate. they say your actual mileage may ers amendment to the Johnson amend- This simple change prevents the auto com- vary, when, in fact, your actual mile- ment, and then if it is amended, we will panies from having to run two separate tests. age probably bears no relationship vote on the Johnson amendment; is Rather the auto companies can run one test whatsoever to those numbers in the that correct? There will be two votes, that could be used and adjusted with appro- window because EPA has specified that Rogers to amend Johnson and then priate factors to provide a more accurate fuel the auto manufacturers use an archaic Johnson, either amended or economy number. testing method. unamended, depending on how the Rog- The Rogers/Kilpatrick perfecting amendment The amendment that the gentle- ers amendment fairs? to the Johnson amendment achieves precisely woman from Connecticut and I have of- The Acting CHAIRMAN. If a recorded the same goal that the Johnson amendment fered would correct that testing meth- vote is requested on the Rogers second strives to achieve: accurate fuel economy la- od. That is the way to take care of this degree amendment, the Chair would bels on new cars. problem. It is not the right thing to do postpone the request and would not put The only difference is that the Rogers/Kil- to use a multiplier factor, a scale fac- the question on the Johnson amend- patrick amendment achieves this goal by hav- tor, to grade on a curve or to use a ment until after disposition of the vote ing EPA revise the current test, instead of fudge factor. That is what the gen- on the amendment of the gentleman compelling EPA to conduct two separate tests. tleman from Michigan (Mr. ROGERS) is from Michigan.

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00193 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.153 H20PT1 H2346 CONGRESSIONAL RECORD — HOUSE April 20, 2005 Mr. BARTON of Texas. But we are of 100,000, where he lives, he does not you will, the way your amendment is going to have two votes? get quite the same mileage because it constructed. It will foist new, unneces- The Acting CHAIRMAN. All time for is a different scenario. sary costs on automakers. debate will be consumed now. You cannot have 20 or 30, who knows Let us do it the way we know can ac- Mr. BARTON of Texas. Thank you, how many tests. Maybe it is like bou- complish what you want and have fam- Mr. Chairman. tique fuels. You have all these different ilies at the end of the day saying, I am The Acting CHAIRMAN. The gen- areas, people with different driving going to show up and build the finest tleman from Michigan (Mr. MIKE ROG- habits, and you cannot expect that the cars in the world right here, in the ERS) is recognized. EPA is going to put a laundry list of great State of Michigan, or any other Mr. ROGERS of Michigan. Mr. Chair- these different tests on the window. We of the 49 great States of this great man, parliamentary inquiry, how do we know that when we buy our vehicles. country. get to the chairman’s 21⁄2 minutes re- We know about what it is going to be Mr. Chairman, I reserve the balance maining on the primary amendment? based on, our history of purchasing of my time. The Acting CHAIRMAN. The gen- cars. And, frankly, a duplicative test Mrs. JOHNSON of Connecticut. Mr. tleman from Texas (Mr. BARTON) may with these multiple numbers will only Chairman, I rise in opposition to this amendment. use his 21⁄2 minutes now if he wishes. be more confusing rather than less con- Now, let me get to the heart of this b 1900 fusing to the consumer. That is why I strongly urge my col- matter, because if I thought this was Mr. BARTON of Texas. Mr. Chair- leagues on both sides of the aisle, as we going to cost people jobs, I certainly man, I yield the balance of my time to have with this bipartisan amendment, would not bring it up. This question the gentleman from Michigan (Mr. to support the Rogers amendment to specifically was litigated in 1985 in the UPTON), the distinguished chairman of the Johnson amendment so we can D.C. Circuit Court, Center for Auto Safety v. Thomas, and the court clear- the Subcommittee on Telecommuni- make more sense for every consumer as ly determined that the CAFE calcula- cations and the Internet of the Com- they purchase a new American car. mittee on Energy and Commerce. Mr. ROGERS of Michigan. Mr. Chair- tion cannot be changed unless Congress Mr. UPTON. Mr. Chairman, I thank man, I yield myself 2 minutes. changes U.S. Code 49, section 32904(c). my distinguished chairman for yielding Mr. Chairman, I want to thank the My amendment does not change that me this time, and I rise in strong sup- sponsors of the amendment and their section. My amendment only changes port of the Rogers amendment to the intent and where they wanted to go. section 32908, which has to do with the Johnson underlying amendment. The gentlewoman from Connecticut data that underlies vehicle stickers. Now, the EPA has changed its testing Currently, there is one test con- (Mrs. JOHNSON) has done a great job of procedures at least twice since 1975. It ducted on vehicles to determine the focusing on a problem that is a prob- did not add a lot of cost. It was not a fuel economy rating. The Johnson lem. We all want accurate numbers on big problem. It is an EPA center that amendment would require EPA to those stickers and times have changed. change that fuel economy testing for does this testing. And every time they The gentleman from Michigan and the changed their testing procedures for label purposes. What this will result in gentlewoman from Michigan, I think, is having automakers being forced to the sticker purpose, they did not have outlined exceptionally well why change it for the CAFE standard pur- do two or three or four, or maybe even this perfecting amendment makes the more, separate tests. That costs pose, because to do that, you have to intent of what our colleague wants to change section 32904, and my amend- money, more money, and is unneces- do exactly that. It clarifies it to the sary and more burdensome. ment does not change section 32904. point that we do not get into CAFE, we So I am sorry we have not been able Additionally, as written, the Johnson get accurate numbers, and we do not to communicate well enough about amendment could also affect how foist a whole set of new costs onto this, because I certainly do not want to CAFE is calculated. The Johnson automakers who are today struggling cost manufacturing jobs. I am a big ad- amendment could lower the fleet fuel to keep people employed. vocate of manufacturing. But I do want economy averages of manufacturers We want accurate numbers as well. consumers to have honest information. that make compliance with the CAFE But I will tell you, families across this And the adjustment in information standards much more difficult. Instead country are suffering in the automobile that the Rogers amendment to my of running the substantial risk under industry. They are suffering. They amendment brings is an amendment the Johnson amendment, the Rogers/ have layoffs, they have job cuts, there that will bring down the miles per gal- Kilpatrick bipartisan perfecting is a lack of hope in some areas and anx- lon for those that are high achievers amendment makes a technical change iety you cannot believe in others. So and bring it up for those who are actu- to clarify that automakers do not have let us err on the side of those families. ally low achievers. So it actually to run multiple duplicative tests to up- Let us stand up today and say, yes, we makes the problem worse rather than date fuel economy labeling and ensures should have accurate numbers on these better. that the CAFE program is not manipu- stickers, the very true intent of what So I urge the body to oppose the Rog- lated. the gentlewoman from Connecticut ers amendment and support the John- Let us take this into a normal exam- (Mrs. JOHNSON) and the gentleman son amendment, because the Rogers ple. This morning, many of us, we live from New Jersey (Mr. HOLT) are trying amendment has the effect of gutting in different States, but we come and to do and trying to accomplish. my amendment, whereas my amend- commute here to Washington. I live in Let us do that, but we can do that ment does not address the CAFE stand- Virginia; it is 7 miles from the Capitol without new costs, without new bur- ards section of the law, which is sec- here to my house. It took me more dens, without even getting close to this tion 32904(c) and only addresses the ve- than 30 minutes to get in today. If I argument that they are going to get hicle sticker section of the law, 32908. had to drive 7 miles in my town of St. into in the CAFE debate, and accom- Mr. Chairman, I reserve the balance Joseph, Michigan, it would take me plish exactly what they want. of my time. about 12 minutes. We know that when I think my colleagues can be proud of Mr. HOLT. Mr. Chairman, will the we buy a car. this amendment, as amended, back in gentlewoman yield? I had a staff member that bought a their districts and tell people that they Mrs. JOHNSON of Connecticut. Mr. great new Ford hybrid vehicle the fought valiantly to get the 2005 stand- Chairman, I yield the balance of my other day. He gets accelerated CAFE, ards on stickers for cars they are going time to the gentleman from New Jer- or he gets much better gas mileage to buy today. It is the right thing to sey (Mr. HOLT). with that car when he is in the big city do. Mr. HOLT. Mr. Chairman, on the sec- driving. When he goes to Chicago, to So I would urge my colleague to look ond order amendment, how much time see the Cubs or the White Sox, or who- deep down and say, do I want to take does the gentlewoman from Con- ever, he gets a lot better mileage be- the chance that I will put out one more necticut have remaining? cause he is stopping and starting all American family out of work? Because The Acting CHAIRMAN (Mr. SIMP- the time. In Kalamazoo, which is a city I think you will. I passionately believe SON). The gentleman from New Jersey

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00194 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.155 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2347

(Mr. HOLT) has 11⁄2 minutes remaining companies approximately twice as (c) LOCAL GOVERNMENT CODES.—In the case on the original bill and the gentle- much as the simpler testing they are of a State in which building energy codes are established by local governments— woman from Connecticut (Mrs. JOHN- doing now. This goes to the heart of 1 (1) A local government may— SON) has ⁄2 minute remaining on the what we are doing to the auto industry (A) apply for a grant under this section; perfecting amendment. now, unintentionally perhaps, and that and Mrs. JOHNSON of Connecticut. Mr. is beating up on them; and we should (B) verify compliance, and demonstrate eli- Chairman, I yield the balance of my not do that. gibility, for the grant under subsection (b); time to the gentleman from New Jer- The Rogers amendment deals with and sey (Mr. HOLT). the need for improved dealer label ac- (2) if the Secretary determines that the The Acting CHAIRMAN. The gen- curacy, while only requiring one test. local government is eligible to receive a grant, the Secretary may provide a grant to tleman may use his 11⁄2 minutes also. Instead of requiring the EPA to change the local government. Mr. HOLT. Mr. Chairman, I yield my- testing procedures, the Rogers amend- (d) USE OF FUNDS.—Funds from a grant self 2 minutes, and I thank my col- ment requires the EPA to change the provided under this section may be used only league for yielding her time to me. adjustment factors that the EPA cur- to carry out activities relating to the imple- Mr. Chairman, to begin to address rently uses to make the fuel economy mentation of building energy codes and be- the second order amendment, which, as label accurate. yond-code building practices. I say, may be technically and in par- This is the way to go. It achieves the (e) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—There is authorized to be liamentary terms called a perfecting goal we all want to have, accuracy, in appropriated to carry out this section amendment, but in fact it would gut a much more reasonable and a much $25,000,000 for each of fiscal years 2006 the amendment, it does not get at the less expensive way. It is not a fudge. through 2010. heart of the problem, which is that the Mr. ROGERS of Michigan. Mr. Chair- (2) SET ASIDE.—Of the amounts authorized tests are wrong. The tests are unreal- man, the gentleman from Michigan, a to be appropriated under paragraph (1), the istic. The tests give results that bear medical doctor, said it all so well, I Secretary may use not more than $500,000 for no relationship to reality. yield back the balance of my time. each fiscal year— Why should taxpayers pay for a test, The Acting CHAIRMAN. The ques- (A) to develop compliance guidelines; a government-mandated test, or auto tion is on the amendment offered by (B) to train State and local officials; and the gentleman from Michigan (Mr. (C) to administer grants provided under purchasers pay for a test that gives in- this section. accurate information? We need to fix MIKE ROGERS) to the amendment of- In section 131(a), amend the proposed sec- the EPA test. It can be fixed without fered by the gentlewoman from Con- tion 324A(3) to read as follows: giving the folks in the State of Michi- necticut (Mrs. JOHNSON). ‘‘(3) preserve the integrity of the Energy gan or other automobile manufac- The question was taken; and the Act- Star label by— turing areas heartburn. It does not ing Chairman announced that the ayes ‘‘(A) regularly updating Energy Star cri- change the fleet average calculation. It appeared to have it. teria; and Mr. HOLT. Mr. Chairman, I demand a ‘‘(B) ensuring, in general, that— only addresses the issue of consumer ‘‘(i) not more than 25 percent of available information, so that the purchaser will recorded vote. The Acting CHAIRMAN. Pursuant to models in a product class receive the Energy have accurate information. Star designation; and If you use this scale factor, or fudge clause 6 of rule XVIII, further pro- ‘‘(ii) Energy Star designated products and factor, it will paper over the under- ceedings on the amendment offered by buildings are at least 10 percent more effi- lying problem. It will distort the fuel the gentleman from Michigan (Mr. cient than— efficiency difference between different MIKE ROGERS) will be postponed. ‘‘(I) appliance standards in effect on the types of vehicles. In fact, my colleague It is now in order to consider amend- date of enactment of this section; and ‘‘(II) the most recent model energy code; earlier talked about how some hybrid ment No. 7 printed in House Report 109–49. In section 133(a)(2), add at the end the fol- vehicles behave differently under dif- lowing new paragraphs: AMENDMENT NO. 7 OFFERED BY MR. BISHOP OF ferent situations. ‘‘(45)(A) The term ‘commercial prerinse NEW YORK The tests themselves need to be spray valve’ means a handheld device de- changed, not an after-the-fact fudge Mr. BISHOP of New York. Mr. Chair- signed and marketed for use with commer- factor, so that when you go into the man, I offer an amendment. cial dishwashing and ware washing equip- The Acting CHAIRMAN. The Clerk showroom to purchase a car and you ment that sprays water on dishes, flatware, will designate the amendment. and other food service items for the purpose see the number in the window for city The text of the amendment is as fol- of removing food residue before cleaning the mileage and highway mileage, you will lows: items. have a reasonable expectation that Amendment No. 7 offered by Mr. BISHOP of ‘‘(B) The term ‘commercial prerinse spray that car, when used on actual Amer- New York: valve’ may include (as determined by the ican streets and actual American high- In section 109(2), at the end of the quoted secretary by rule) products— ways, will give mileage comparable to material insert the following new paragraph: ‘‘(i) that are extensively used in conjunc- what is posted there. ‘‘(4) All housing constructed under the tion with commercial dishwashing and ware The ad says your actual mileage may military housing privatization initiative of washing equipment; vary. The way it is today, with the the Department of Defense shall, to the max- ‘‘(ii) the application of standards to which imum extent practicable— would result in significant energy savings; tests that we have, your actual mileage and may bear no relationship whatsoever ‘‘(A) meet Federal building energy effi- ciency standards under this section; and ‘‘(iii) the application of standards to that to what is printed in the window. That ‘‘(B) include Energy Star appliances. would meet the criteria specified in sub- is what we are trying to correct with In title I, subtitle A, add at the end the fol- section (o)(4). the Johnson-Holt amendment. The lowing new section: ‘‘(C) The term ‘commercial prerinse spray Rogers second order amendment com- SEC. 112. MODEL BUILDING ENERGY CODE COM- valve’ may exclude (as determined by the pletely changes the nature of what we PLIANCE GRANT PROGRAM. secretary by rule) products— are trying to do. (a) IN GENERAL.—The Secretary shall carry ‘‘(i) that are used for special food service applications; Mr. ROGERS of Michigan. Mr. Chair- out a program to provide grants to each State that the Secretary determines, with ‘‘(ii) that are unlikely to be widely used in man, I yield 1 minute to the distin- respect to new buildings in the State, conjunction with commercial dishwashing guished gentleman from Michigan (Mr. achieves at least a 90-percent rate of compli- and ware washing equipment; and SCHWARZ), a great public servant. ance (based on energy performance) with the ‘‘(iii) the application of standards to which Mr. SCHWARZ. Mr. Chairman, the most recent model building energy codes. would not result in significant energy sav- Johnson amendment requires the EPA (b) GUIDELINES.—Not later than 180 days ings. to change the testing procedures that after the date of enactment of this Act, the ‘‘(46) The term ‘dehumidifier’ means a self- auto companies use to determine the Secretary shall issue guidelines that stand- contained, electrically operated, and me- fuel economy numbers that go on the ardize criteria by which a State that seeks chanically encased assembly consisting of— to receive a grant under this section may— ‘‘(A) a refrigerated surface (evaporator) dealer label. Her amendment requires (1) verify compliance with applicable that condenses moisture from the atmos- auto companies to do one test for label- model building energy codes; and phere; ing and a separate test for CAFE. The (2) demonstrate eligibility to receive a ‘‘(B) a refrigerating system, including an language in this amendment costs the grant under this section. electric motor;

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00195 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.157 H20PT1 H2348 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(C) an air-circulating fan; and section, the Governor of a cold climate State air conditioning heat pumps for commercial ‘‘(D) means for collecting or disposing of files with the Secretary a notice that the application. the condensate.’’. State has implemented a requirement for an ‘‘(B) The term ‘small commercial package In section 133(b)(1), insert after the pro- annual fuel utilization efficiency of not less air conditioning and heating equipment’ posed paragraph (13) the following new para- than 90 percent for furnaces (other than boil- means commercial package air conditioning graphs: ers and furnaces designed solely for installa- and heating equipment that is rated below ‘‘(14) Test procedures for dehumidifiers tion in a mobile home or boiler), the annual 135,000 Btu per hour (cooling capacity). shall be based on the test criteria used under fuel utilization efficiency of a furnace sold in ‘‘(C) The term ‘large commercial package the Energy Star Program Requirements for that State shall be not less than 90 percent. air conditioning and heating equipment’ Dehumidifiers developed by the Environ- ‘‘(ii) If a State described in clause (i) fails means commercial package air conditioning mental Protection Agency, as in effect on to implement or reasonably enforce (as de- and heating equipment that is rated at or the date of enactment of this paragraph un- termined by the Secretary) annual fuel utili- above 135,000 Btu per hour and below 240,000 less revised by the Secretary pursuant to zation efficiency in accordance with that Btu per hour (cooling capacity). this section. clause, the annual fuel use efficiency for fur- ‘‘(D) The term ‘very large commercial ‘‘(15) The test procedure for measuring flow naces (other than boilers and furnaces de- package air conditioning and heating equip- rate for commercial prerinse spray valves signed solely for installation in a mobile ment’ means commercial package air condi- shall be based on American Society for Test- home or boiler) in that State shall be the tioning and heating equipment that is rated ing and Materials Standard F2324, entitled fuel utilization efficiency established under at or above 240,000 Btu per hour and below ‘Standard Test Method for Prerinse Spray paragraph (1). 760,000 Btu per hour (cooling capacity).’’; Valves.’’’. ‘‘(3)(A) Not later than 5 years after the (4) by redesignating paragraphs (10) In section 133(c), at the end of the quoted date on which a standard for a product under through (18) as paragraphs (9) through (17), material insert the following new sub- this subsection takes effect, the Secretary respectively; and sections: shall promulgate a final rule to determine (5) in paragraph (10) (as redesignated by ‘‘(ee) DEHUMIDIFIERS.—(1) Dehumidifiers whether that standard should be amended. subparagraph (D)), by inserting ‘‘, except for manufactured on or after October 1, 2007, ‘‘(B) If the Secretary determines that a gas unit heaters and gas duct furnaces’’ after shall have an Energy Factor that meets or standard under subparagraph (A) should be ‘‘furnaces’’. exceeds the following values: amended— (b) STANDARDS.—Section 342(a) of the En- ‘‘‘‘Product Capacity Minimum Energy ‘‘(i) the final rule promulgated pursuant to ergy Policy and Conservation Act (42 U.S.C. (pints/day): Factor (Liters/kWh) subparagraph (A) shall contain the new 6313(a)) is amended— ...... 1.00 standard; and (1) in the subsection heading, by striking > 25 – ...... 1.20 ‘‘(ii) the new standard shall apply to any ‘‘Small and Large’’ and inserting ‘‘Small, > 35 – ...... 1.30 product manufactured after the date that is Large, and Very Large’’; > 54 – < 75 ...... 1.50 5 years after the date on which the final rule (2) in paragraph (1), by inserting ‘‘but be- ...... 2.25. is promulgated.’’. fore January 1, 2010,’’ after ‘‘January 1, ‘‘(2)(A) Not later than October 1, 2009, the In section 134(b), in the quoted material, 1994,’’; Secretary shall publish a final rule in ac- insert at the end the following new para- (3) in paragraph (2), by inserting ‘‘but be- cordance with subsections (o) and (p), to de- graphs: fore January 1, 2010,’’ after ‘‘January 1, termine whether the standards established ‘‘(6) In the case of dehumidifiers covered 1995,’’; under paragraph (1) should be amended. under section 325(ee), the Commission shall (4) in paragraph (4), by inserting ‘‘, except ‘‘(B) The final rule shall contain any not require an Energy Guide label. for a gas unit heater or gas duct furnace,’’ amendment by the Secretary and shall pro- ‘‘(7)(A) Not later than July 1, 2006, the after ‘‘boiler’’; vide that the amendment shall apply to Commission shall prescribe by rule, pursuant (5) in paragraph (6)— products manufactured on or after October 1, to this section, labeling requirements for the (A) in subparagraph (A)— 2012. electricity used by ceiling fans to circulate (i) by inserting ‘‘(i)’’ after ‘‘(A)’’; ‘‘(C) If the Secretary does not publish an air in a room. (ii) by striking ‘‘the date of enactment of amendment that takes effect by October 1, ‘‘(B) The requirements shall be based on the Energy Policy Act of 1992’’ and inserting 2012, dehumidifiers manufactured on or after the test procedure and labeling requirements ‘‘January 1, 2010’’; October 1, 2012, shall have an Energy Factor contained in the Energy Star Program Re- (iii) by inserting after ‘‘large commercial that meets or exceeds the following values: quirements for Residential Ceiling Fans, package air conditioning and heating equip- ment’’ the following: ‘‘and very large com- ‘‘‘‘Product Capacity Minimum Energy version 2.0, issued by the Environmental mercial package air conditioning and heat- (pints/day): Factor (Liters/kWh) Protection Agency, except that third party ...... 1.20 testing and other non-labeling requirements ing equipment, or if ASHRAE/IES Standard > 25 – ...... 1.30 shall not be promulgated unless the Commis- 90.1, as in effect on October 24, 1992, is > 35 – ...... 1.40 sion determines the requirements are nec- amended with respect to any’’; and > 45 – ...... 1.50 essary to achieve compliance. (iv) by adding at the end the following: > 54 – < 75 ...... 1.60 ‘‘(C) The rule shall apply to products man- ‘‘(ii) If ASHRAE/IES Standard 90.1 is not ...... 2.5. ufactured after the later of— amended with respect to small commercial ‘‘(ff) COMMERCIAL PRERINSE SPRAY ‘‘(i) January 1, 2007; or package air conditioning and heating equip- VALVES.—Commercial prerinse spray valves ‘‘(ii) the date that is 60 days after the final ment, large commercial package air condi- manufactured on or after January 1, 2006, rule is prescribed.’’. tioning and heating equipment, and very shall have a flow rate less than or equal to In section 135, in the proposed subsection large commercial package air conditioning 1.6 gallons per minute. (h), insert ‘‘, upon adoption of a standard and heating equipment during the 5-year pe- ‘‘(gg) STANDARDS FOR CERTAIN FURNACES.— under this Act’’ after ‘‘fan light kits’’. riod beginning on the effective date of a (1) Notwithstanding subsection (f) and except In title I, subtitle, C, add at the end the standard, the Secretary may initiate a rule- as provided in paragraphs (2) and (3), a fur- following new section: making to determine whether a more strin- nace (including a furnace designed solely for SEC. 137. COMMERCIAL PACKAGE AIR CONDI- gent standard would result in significant ad- installation in a mobile home) manufactured TIONING AND HEATING EQUIPMENT. ditional conservation of energy and is tech- 3 or more years after the date of enactment (a) DEFINITIONS.—Section 340 of the Energy nologically feasible and economically justi- of this subsection shall have an annual fuel Policy and Conservation Act (42 U.S.C. 6311) fied. utilization efficiency of— is amended— ‘‘(iii) This subparagraph does not apply to ‘‘(A) for natural gas- and propane-fired (1) in paragraph (1)— gas-fired warm-air furnaces, gas-fired pack- equipment, not less than 80 percent; and (A) by redesignating subparagraphs (D) age boilers, storage water heaters, gas unit ‘‘(B) for oil-fired equipment not less than through (G) as subparagraphs (E) through heaters, or gas duct furnaces manufactured 5 83 percent. (H), respectively; and or more years after the date of enactment of ‘‘(2)(A) Notwithstanding subsection (f) and (B) by inserting after subparagraph (C) the the National Energy Efficiency Policy Act of except as provided in paragraph (3)— following: 2005.’’; and ‘‘(i) a boiler (other than a gas steam boiler) ‘‘(D) Very large commercial package air (B) in subparagraph (C)(ii), by inserting manufactured 3 or more years after the date conditioning and heating equipment.’’; ‘‘and very large commercial package air con- of enactment of this subsection shall have an (2) in paragraph (2)(B), by striking ‘‘small ditioning and heating equipment’’ after annual fuel utilization efficiency of not less and large’’; ‘‘large commercial package air conditioning than 84 percent; and (3) by striking paragraphs (8) and (9) and and heating equipment’’; and ‘‘(ii) a gas steam boiler manufactured 3 or inserting the following: (6) by adding at the end the following: more years after the date of enactment of ‘‘(8)(A) The term ‘commercial package air ‘‘(7) Each small commercial package air this subsection shall have an annual fuel uti- conditioning and heating equipment’ means conditioning and heating equipment manu- lization efficiency of not less than 82 per- air-cooled, water-cooled, evaporatively- factured on or after January 1, 2010, shall cent. cooled, or water source (not including meet the following standards: ‘‘(B)(i) Notwithstanding subsection (f), if, ground water source) electrically operated, ‘‘(A) The minimum energy efficiency ratio after the date of enactment of this sub- unitary central air conditioners and central of air-cooled central air conditioners at or

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00196 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.099 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2349 above 65,000 btu per hour (cooling capacity) tral air conditioning heat pumps at or above ‘‘(3) If the California Energy Commission and less than 135,000 btu per hour (cooling 240,000 Btu per hour (cooling capacity) and adopts, not later than March 31, 2005, a regu- capacity) shall be— less than 760,000 Btu per hour (cooling capac- lation concerning the energy efficiency or ‘‘(i) 11.2 for equipment with no heating or ity) shall be 3.2 (at a high temperature rat- energy effective after, the standards estab- electric resistance heating; and ing of 47 degrees F db). lished under section 342(a)(9) take effect on ‘‘(ii) 11.0 for equipment with all other heat- ‘‘(10) Notwithstanding paragraph (4) and January 1, 2010.’’. ing system types that are integrated into the except as provided in paragraph (14), the In section 304, insert at the end the fol- equipment (at a standard rating of 95 degrees minimum thermal efficiency at the max- lowing: ‘‘In determining whether to defer F db). imum rated capacity of a gas-fired warm-air such acquisition, the Secretary shall use ‘‘(B) The minimum energy efficiency ratio furnace with the capacity of 225,000 Btu per market-based practices when deciding to ac- of air-cooled central air conditioner heat hour or more manufactured 4 or more years quire petroleum for the Strategic Petroleum pumps at or above 65,000 btu per hour (cool- after the date of enactment of this paragraph Reserve, as used prior to 2002; carry out and ing capacity) and less than 135,000 btu per shall be 79.5 percent. make public analyses of costs and savings hour (cooling capacity) shall be— ‘‘(11) Notwithstanding paragraph (4) and when making or deferring such acquisi tions; ‘‘(i) 11.0 for equipment with no heating or except as provided in paragraph (14), the take into account and report to Congress the impact the acquisition will have on the do- electric resistance heating; and minimum combustion efficiency at the max- mestic and foreign supply of petroleum and ‘‘(ii) 10.8 for equipment with all other heat- imum rated capacity of a gas-fired package the resulting price increases or decreases; ing system types that are integrated into the boiler with the capacity of 300,000 Btu per and consult with the Secretary of Homeland equipment (at a standard rating of 95 degrees hour or more manufactured 4 or more years Security on the security consequences of F db). after the date of enactment of this paragraph ‘‘(C) The minimum coefficient of perform- such acquisition or deferral.’’. shall be 84 percent. In title III, subtitle A, add at the end the ance in the heating mode of air-cooled cen- ‘‘(12) Notwithstanding paragraph (5) (ex- tral air conditioning heat pumps at or above following new section: cluding paragraph (5)(g)), and except as pro- SEC. 305. SENSE OF THE HOUSE OF REPRESENTA- 65,000 Btu per hour (cooling capacity) and vided in paragraph (14)— less than 135,000 Btu per hour (cooling capac- TIVES. ‘‘(A) the maximum standby loss (expressed It is the sense of the House of Representa- ity) shall be 3.3 (at a high temperature rat- as a percent per hour) of a gas-fired storage tives that, to address the crude oil price ing of 47 degrees F db). water heater shall be 1.30 (expressed as a problem in the short-term, the President ‘‘(8) Each large commercial package air measurement of storage volume in gallons); should communicate immediately to the conditioning and heating equipment manu- and members of the Organization of Petroleum factured on or after January 1, 2010, shall ‘‘(B) the minimal thermal efficiency of a Exporting Countries (OPEC) cartel and non- meet the following standards: gas-fired storage water heater shall be 82 OPEC countries that participate in the car- ‘‘(A) The minimum energy efficiency ratio percent. tel of crude oil producing countries that— of air-cooled central air conditioners at or ‘‘(13) Except as provided in paragraph (14), (1) the United States seeks to maintain above 135,000 btu per hour (cooling capacity) each gas unit heater and gas duct furnace strong relations with crude oil producers and less than 240,000 Btu per hour (cooling manufactured 3 or more years after the date around the world while promoting inter- capacity) shall be— of enactment of this paragraph shall be national efforts to remove barriers to energy ‘‘(i) 11.0 for equipment with no heating or equipped with— trade and investment and increased access electric resistance heating; and ‘‘(A) an intermittent ignition device; and for United States energy firms around the ‘‘(ii) 10.8 for equipment with all other heat- ‘‘(B)(i) power venting; or world; ing system types that are integrated into the ‘‘(ii) an automatic flue damper. (2) the United States believes that restrict- equipment (at a standard rating of 95 degrees ‘‘(14)(A) Not later than 5 years after the ing supply in a market that is in demand for F db). date on which a standard for a product under ‘‘(B) The minimum energy efficiency ratio additional crude oil does serious damage to paragraph (10), (11), (12), or (13) takes effect, of air-cooled central air conditioner heat the efforts that OPEC members have made to the Secretary shall promulgate a final rule pumps at or above 135,000 Btu per hour (cool- demonstrate that they represent a reliable ing capacity) and less than 240,000 btu per to determine whether the standard for that source of crude oil supply; hour (cooling capacity) shall be— product should be amended. (3) the United States believes that stable ‘‘(i) 10.6 for equipment with no heating or ‘‘(B) If the Secretary determines that a crude oil prices and supplies are essential for electric resistance heating; and standard should be amended under subpara- strong economic growth throughout the ‘‘(ii) 10.4 for equipment with all other heat- graph (A)— world; ing system types that are integrated into the ‘‘(i) the final rule promulgated pursuant to (4) the United States seeks an immediate equipment (at a standard rating of 95 degrees subparagraph (A) shall contain the new increase in the OPEC crude oil production F db). standard; and quotas; and ‘‘(C) The minimum coefficient of perform- ‘‘(ii) the new standard shall apply to any (5) the United States will temporarily sus- ance in the heating mode of air-cooled cen- product manufactured 4 or more years after pend further purchases of crude oil for the tral air conditioning heat pumps at or above the date on which the final rule is promul- Strategic Petroleum Reserve, thereby free- 135,000 Btu per hour (cooling capacity) and gated.’’. ing up additional supply for the market- less than 240,000 Btu per hour (cooling capac- (c) TEST PROCEDURES.—Section 343 of the place. ity) shall be 3.2 (at a high temperature rat- Energy Policy and Conservation Act (42 Amend section 355 to read as follows (and ing of 47 degrees F db). U.S.C. 6314) is amended in subsections (a)(4) amend the table of contents accordingly): ‘‘(9) Each very large commercial package and (d)(1), by inserting ‘‘very large commer- SEC. 355. GREAT LAKES OIL AND GAS DRILLING air conditioning and heating equipment cial package air conditioning and heating BAN. manufactured on or after January 1, 2010, equipment,’’ after ‘‘large commercial pack- No Federal or State permit or lease shall shall meet the following standards: age air conditioning and heating equip- be issued for new oil and gas slant, direc- ment,’’ each place it appears. ‘‘(A) The minimum energy efficiency ratio tional, or offshore drilling in or under one or (d) LABELING.—Section 344(e) of the Energy more of the Great Lakes. of air-cooled central air conditioners at or Policy and Conservation Act (42 U.S.C. Title XII is amended by striking sections above 240,000 btu per hour (cooling capacity) 6315(e)) is amended in the first and second 1201 through 1235 and sections 1237 through and less than 760,000 Btu per hour (cooling sentences, by inserting ‘‘very large commer- 1298, by striking the title heading, by insert- capacity) shall be— cial package air conditioning and heating ing the following before title XIII, by redes- ‘‘(i) 10.0 for equipment with no heating or equipment,’’ after ‘‘large commercial pack- ignating section 1236 (relating to native load electric resistance heating; and age air conditioning and heating equip- service obligation) as section 1233 of the fol- ‘‘(ii) 9.8 for equipment with all other heat- ment,’’ each place it appears. lowing and inserting such redesignated sec- ing system types that are integrated into the (e) ADMINISTRATION, PENALTIES, ENFORCE- tion 1233 after section 1232 of the following, equipment (at a standard rating of 95 degrees MENT, AND PREEMPTION.—Section 345 of the and by making the necessary conforming F db). Energy Policy and Conservation Act (42 changes in the table of contents: ‘‘(B) The minimum energy efficiency ratio U.S.C. 6316) is amended by adding at the end TITLE XII—ELECTRICITY of air-cooled central air conditioner heat the following: pumps at or above 240,000 Btu per hour (cool- ‘‘(d)(1) Except as provided in paragraphs (2) SEC. 1201. SHORT TITLE. This title may be cited as the ‘‘Electric Re- ing capacity) and less than 760,000 Btu per and (3), section 327 shall apply with respect liability Act of 2005’’. hour (cooling capacity) shall be— to the equipment specified in section ‘‘(i) 9.5 for equipment with no heating or 340(1)(D) to the same extent and in the same Subtitle A—Reliability Standards electric resistance heating; and manner as section 327 applies under part A SEC. 1211. ELECTRIC RELIABILITY STANDARDS. ‘‘(ii) 9.3 for equipment with all other heat- on the date of enactment of this subsection. (a) IN GENERAL.—Part II of the Federal ing system types that are integrated into the ‘‘(2) Any State or local standard prescribed Power Act (16 U.S.C 824 et seq.) is amended equipment (at a standard rating of 95 degrees or enacted prior to the date of enactment of by adding at the end the following: F db). this subsection shall not be preempted until ‘‘SEC. 215. ELECTRIC RELIABILITY. ‘‘(C) The minimum coefficient of perform- the standards established under section ‘‘(a) DEFINITIONS.—For purposes of this sec- ance in the heating mode of air-cooled cen- 342(a)(9) take effect on January 1, 2010. tion:

VerDate jul 14 2003 06:27 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00197 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.099 H20PT1 H2350 CONGRESSIONAL RECORD — HOUSE April 20, 2005 ‘‘(1) The term ‘bulk-power system’ means— system, while assuring fair stakeholder rep- ‘‘(A) the Commission finds a conflict exists ‘‘(A) facilities and control systems nec- resentation in the selection of its directors between a reliability standard and any such essary for operating an interconnected elec- and balanced decisionmaking in any ERO provision; tric energy transmission network (or any committee or subordinate organizational ‘‘(B) the Commission orders a change to portion thereof); and structure; such provision pursuant to section 206 of this ‘‘(B) electric energy from generation facili- ‘‘(B) allocate equitably reasonable dues, part; and ties needed to maintain transmission system fees, and other charges among end users for ‘‘(C) the ordered change becomes effective reliability. all activities under this section; under this part. The term does not include facilities used in ‘‘(C) provide fair and impartial procedures If the Commission determines that a reli- the local distribution of electric energy. for enforcement of reliability standards ability standard needs to be changed as a re- ‘‘(2) The terms ‘Electric Reliability Orga- through the imposition of penalties in ac- sult of such a conflict, it shall order the ERO nization’ and ‘ERO’ mean the organization cordance with subsection (e) (including limi- to develop and file with the Commission a certified by the Commission under sub- tations on activities, functions, or oper- modified reliability standard under para- section (c) the purpose of which is to estab- ations, or other appropriate sanctions); graph (4) or (5) of this subsection. lish and enforce reliability standards for the ‘‘(D) provide for reasonable notice and op- ‘‘(e) ENFORCEMENT.—(1) The ERO may im- bulk-power system, subject to Commission portunity for public comment, due process, pose, subject to paragraph (2), a penalty on a review. openness, and balance of interests in devel- user or owner or operator of the bulk-power ‘‘(3) The term ‘reliability standard’ means oping reliability standards and otherwise ex- system for a violation of a reliability stand- a requirement, approved by the Commission ercising its duties; and ard approved by the Commission under sub- under this section, to provide for reliable op- ‘‘(E) provide for taking, after certification, section (d) if the ERO, after notice and an eration of the bulk-power system. The term appropriate steps to gain recognition in Can- opportunity for a hearing— includes requirements for the operation of ada and Mexico. ‘‘(A) finds that the user or owner or oper- existing bulk-power system facilities and the The total amount of all dues, fees, and other ator has violated a reliability standard ap- design of planned additions or modifications charges collected by the ERO in each of the proved by the Commission under subsection to such facilities to the extent necessary to fiscal years 2006 through 2015 and allocated (d); and provide for reliable operation of the bulk- under subparagraph (B) shall not exceed ‘‘(B) files notice and the record of the pro- power system, but the term does not include $50,000,000. ceeding with the Commission. ‘‘(2) A penalty imposed under paragraph (1) any requirement to enlarge such facilities or ‘‘(d) RELIABILITY STANDARDS.—(1) The to construct new transmission capacity or Electric Reliability Organization shall file may take effect not earlier than the 31st day generation capacity. each reliability standard or modification to after the ERO files with the Commission no- ‘‘(4) The term ‘reliable operation’ means a reliability standard that it proposes to be tice of the penalty and the record of pro- operating the elements of the bulk-power made effective under this section with the ceedings. Such penalty shall be subject to re- system within equipment and electric sys- Commission. view by the Commission, on its own motion or upon application by the user, owner or op- tem thermal, voltage, and stability limits so ‘‘(2) The Commission may approve, by rule erator that is the subject of the penalty filed that instability, uncontrolled separation, or or order, a proposed reliability standard or within 30 days after the date such notice is cascading failures of such system will not modification to a reliability standard if it filed with the Commission. Application to occur as a result of a sudden disturbance or determines that the standard is just, reason- the Commission for review, or the initiation unanticipated failure of system elements. able, not unduly discriminatory or pref- of review by the Commission on its own mo- ‘‘(5) The term ‘Interconnection’ means a erential, and in the public interest. The tion, shall not operate as a stay of such pen- geographic area in which the operation of Commission shall give due weight to the alty unless the Commission otherwise orders bulk-power system components is syn- technical expertise of the Electric Reli- upon its own motion or upon application by chronized such that the failure of 1 or more ability Organization with respect to the con- tent of a proposed standard or modification the user, owner or operator that is the sub- of such components may adversely affect the ject of such penalty. In any proceeding to re- ability of the operators of other components to a reliability standard and to the technical expertise of a regional entity organized on view a penalty imposed under paragraph (1), within the system to maintain reliable oper- the Commission, after notice and oppor- ation of the facilities within their control. an Interconnection-wide basis with respect to a reliability standard to be applicable tunity for hearing (which hearing may con- ‘‘(6) The term ‘transmission organization’ sist solely of the record before the ERO and means a Regional Transmission Organiza- within that Interconnection, but shall not defer with respect to the effect of a standard opportunity for the presentation of sup- tion, Independent System Operator, inde- porting reasons to affirm, modify, or set pendent transmission provider, or other on competition. A proposed standard or modification shall take effect upon approval aside the penalty), shall by order affirm, set transmission organization finally approved aside, reinstate, or modify the penalty, and, by the Commission for the operation of by the Commission. ‘‘(3) The Electric Reliability Organization if appropriate, remand to the ERO for fur- transmission facilities. shall rebuttably presume that a proposal ther proceedings. The Commission shall im- ‘‘(7) The term ‘regional entity’ means an from a regional entity organized on an Inter- plement expedited procedures for such hear- entity having enforcement authority pursu- connection-wide basis for a reliability stand- ings. ant to subsection (e)(4). ard or modification to a reliability standard ‘‘(3) On its own motion or upon complaint, ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) to be applicable on an Interconnection-wide the Commission may order compliance with The Commission shall have jurisdiction, a reliability standard and may impose a pen- within the United States, over the ERO cer- basis is just, reasonable, and not unduly dis- alty against a user or owner or operator of tified by the Commission under subsection criminatory or preferential, and in the pub- the bulk-power system if the Commission (c), any regional entities, and all users, own- lic interest. finds, after notice and opportunity for a ers and operators of the bulk-power system, ‘‘(4) The Commission shall remand to the hearing, that the user or owner or operator including but not limited to the entities de- Electric Reliability Organization for further of the bulk-power system has engaged or is scribed in section 201(f), for purposes of ap- consideration a proposed reliability standard about to engage in any acts or practices that proving reliability standards established or a modification to a reliability standard constitute or will constitute a violation of a under this section and enforcing compliance that the Commission disapproves in whole or reliability standard. with this section. All users, owners and oper- in part. ‘‘(4) The Commission shall issue regula- ators of the bulk-power system shall comply ‘‘(5) The Commission, upon its own motion tions authorizing the ERO to enter into an with reliability standards that take effect or upon complaint, may order the Electric agreement to delegate authority to a re- under this section. Reliability Organization to submit to the ‘‘(2) The Commission shall issue a final Commission a proposed reliability standard gional entity for the purpose of proposing re- rule to implement the requirements of this or a modification to a reliability standard liability standards to the ERO and enforcing section not later than 180 days after the date that addresses a specific matter if the Com- reliability standards under paragraph (1) if— of enactment of this section. mission considers such a new or modified re- ‘‘(A) the regional entity is governed by— ‘‘(c) CERTIFICATION.—Following the liability standard appropriate to carry out ‘‘(i) an independent board; issuance of a Commission rule under sub- this section. ‘‘(ii) a balanced stakeholder board; or section (b)(2), any person may submit an ap- ‘‘(6) The final rule adopted under sub- ‘‘(iii) a combination independent and bal- plication to the Commission for certification section (b)(2) shall include fair processes for anced stakeholder board. as the Electric Reliability Organization. The the identification and timely resolution of ‘‘(B) the regional entity otherwise satisfies Commission may certify 1 such ERO if the any conflict between a reliability standard the provisions of subsection (c)(1) and (2); Commission determines that such ERO— and any function, rule, order, tariff, rate and ‘‘(1) has the ability to develop and enforce, schedule, or agreement accepted, approved, ‘‘(C) the agreement promotes effective and subject to subsection (e)(2), reliability stand- or ordered by the Commission applicable to a efficient administration of bulk-power sys- ards that provide for an adequate level of re- transmission organization. Such trans- tem reliability. liability of the bulk-power system; and mission organization shall continue to com- The Commission may modify such delega- ‘‘(2) has established rules that— ply with such function, rule, order, tariff, tion. The ERO and the Commission shall ‘‘(A) assure its independence of the users rate schedule or agreement accepted ap- rebuttably presume that a proposal for dele- and owners and operators of the bulk-power proved, or ordered by the Commission until— gation to a regional entity organized on an

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Interconnection-wide basis promotes effec- posed of 1 member from each participating ‘‘(e) APPLICATION TO UNREGULATED TRANS- tive and efficient administration of bulk- State in the region, appointed by the Gov- MITTING UTILITIES.—The rate changing proce- power system reliability and should be ap- ernor of each State, and may include rep- dures applicable to public utilities under proved. Such regulation may provide that resentatives of agencies, States, and prov- subsections (c) and (d) of section 205 are ap- the Commission may assign the ERO’s au- inces outside the United States. A regional plicable to unregulated transmitting utili- thority to enforce reliability standards advisory body may provide advice to the ties for purposes of this section. under paragraph (1) directly to a regional en- Electric Reliability Organization, a regional ‘‘(f) REMAND.—In exercising its authority tity consistent with the requirements of this entity, or the Commission regarding the gov- under paragraph (1) of subsection (a), the paragraph. ernance of an existing or proposed regional Commission may remand transmission rates ‘‘(5) The Commission may take such action entity within the same region, whether a to an unregulated transmitting utility for as is necessary or appropriate against the standard proposed to apply within the region review and revision where necessary to meet ERO or a regional entity to ensure compli- is just, reasonable, not unduly discrimina- the requirements of subsection (a). ance with a reliability standard or any Com- tory or preferential, and in the public inter- ‘‘(g) OTHER REQUESTS.—The provision of mission order affecting the ERO or a re- est, whether fees proposed to be assessed transmission services under subsection (a) gional entity. within the region are just, reasonable, not does not preclude a request for transmission ‘‘(6) Any penalty imposed under this sec- unduly discriminatory or preferential, and in services under section 211. tion shall bear a reasonable relation to the the public interest and any other responsibil- ‘‘(h) LIMITATION.—The Commission may seriousness of the violation and shall take ities requested by the Commission. The Com- not require a State or municipality to take into consideration the efforts of such user, mission may give deference to the advice of action under this section that would violate owner, or operator to remedy the violation any such regional advisory body if that body a private activity bond rule for purposes of in a timely manner. is organized on an Interconnection-wide section 141 of the Internal Revenue Code of ‘‘(f) CHANGES IN ELECTRIC RELIABILITY OR- basis. 1986 (26 U.S.C. 141). GANIZATION RULES.—The Electric Reliability ‘‘(k) ALASKA AND HAWAII.—The provisions ‘‘(i) TRANSFER OF CONTROL OF TRANSMIT- Organization shall file with the Commission of this section do not apply to Alaska or Ha- TING FACILITIES.—Nothing in this section au- waii.’’. for approval any proposed rule or proposed thorizes the Commission to require an un- rule change, accompanied by an explanation (b) STATUS OF ERO.—The Electric Reli- ability Organization certified by the Federal regulated transmitting utility to transfer of its basis and purpose. The Commission, control or operational control of its trans- upon its own motion or complaint, may pro- Energy Regulatory Commission under sec- tion 215(c) of the Federal Power Act and any mitting facilities to an RTO or any other pose a change to the rules of the ERO. A pro- Commission-approved independent trans- posed rule or proposed rule change shall take regional entity delegated enforcement au- thority pursuant to section 215(e)(4) of that mission organization designated to provide effect upon a finding by the Commission, nondiscriminatory transmission access. after notice and opportunity for comment, Act are not departments, agencies, or instru- mentalities of the United States Govern- ‘‘(j) DEFINITION.—For purposes of this sec- that the change is just, reasonable, not un- tion, the term ‘unregulated transmitting duly discriminatory or preferential, is in the ment. (c) LIMITATION ON ANNUAL APPROPRIA- utility’ means an entity that— public interest, and satisfies the require- TIONS.—There is authorized to be appro- ‘‘(1) owns or operates facilities used for the ments of subsection (c). priated not mroe than $50,000,000 per year for transmission of electric energy in interstate ‘‘(g) RELIABILITY REPORTS.—The ERO shall commerce; and conduct periodic assessments of the reli- fiscal years 2006 through 2015 for all activi- ‘‘(2) is an entity described in section ability and adequacy of the bulk-power sys- ties under the amendment made by sub- 201(f).’’. tem in North America. section (a). ‘‘(h) COORDINATION WITH CANADA AND MEX- Subtitle B—Transmission Operation SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION ORGANI- ICO.—The President is urged to negotiate Improvements ZATIONS. international agreements with the govern- SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. ments of Canada and Mexico to provide for Part II of the Federal Power Act (16 U.S.C. (a) DEFINITIONS.—For purposes of this sec- effective compliance with reliability stand- 824 et seq.) is amended by inserting after sec- tion— ards and the effectiveness of the ERO in the tion 211 the following new section: (1) APPROPRIATE FEDERAL REGULATORY AU- THORITY.—The term ‘‘appropriate Federal United States and Canada or Mexico. ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO TRANSMITTING UTILITIES. regulatory authority’’ means— shall have authority to develop and enforce ‘‘(a) TRANSMISSION SERVICES.—Subject to (A) with respect to a Federal power mar- compliance with reliability standards for section 212(h), the Commission may, by rule keting agency (as defined in the Federal only the bulk-power system. or order, require an unregulated transmit- Power Act), the Secretary of Energy, except ‘‘(2) This section does not authorize the ting utility to provide transmission serv- that the Secretary may designate the Ad- ERO or the Commission to order the con- ices— ministrator of a Federal power marketing struction of additional generation or trans- ‘‘(1) at rates that are comparable to those agency to act as the appropriate Federal reg- mission capacity or to set and enforce com- that the unregulated transmitting utility ulatory authority with respect to the trans- pliance with standards for adequacy or safe- charges itself; and mission system of that Federal power mar- ty of electric facilities or services. ‘‘(2) on terms and conditions (not relating keting agency; and ‘‘(3) Nothing in this section shall be con- to rates) that are comparable to those under (B) with respect to the Tennessee Valley strued to preempt any authority of any which such unregulated transmitting utility Authority, the Board of Directors of the Ten- State to take action to ensure the safety, provides transmission services to itself and nessee Valley Authority. adequacy, and reliability of electric service that are not unduly discriminatory or pref- (2) FEDERAL UTILITY.—The term ‘‘Federal within that State, as long as such action is erential. utility’’ means a Federal power marketing not inconsistent with any reliability stand- ‘‘(b) EXEMPTION.—The Commission shall agency or the Tennessee Valley Authority. ard, except that the State of New York may exempt from any rule or order under this (3) TRANSMISSION SYSTEM.—The term establish rules that result in greater reli- section any unregulated transmitting utility ‘‘transmission system’’ means electric trans- ability within that State, as long as such ac- that— mission facilities owned, leased, or con- tion does not result in lesser reliability out- ‘‘(1) sells no more than 4,000,000 megawatt tracted for by the United States and oper- side the State than that provided by the reli- hours of electricity per year; or ated by a Federal utility. ability standards.. ‘‘(2) does not own or operate any trans- (b) TRANSFER.—The appropriate Federal ‘‘(4) Within 90 days of the application of mission facilities that are necessary for op- regulatory authority is authorized to enter the Electric Reliability Organization or erating an interconnected transmission sys- into a contract, agreement or other arrange- other affected party, and after notice and op- tem (or any portion thereof); or ment transferring control and use of all or portunity for comment, the Commission ‘‘(3) meets other criteria the Commission part of the Federal utility’s transmission shall issue a final order determining whether determines to be in the public interest. system to an RTO or ISO (as defined in the a State action is inconsistent with a reli- ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The Federal Power Act), approved by the Federal ability standard, taking into consideration requirements of subsection (a) shall not Energy Regulatory Commission. Such con- any recommendation of the ERO. apply to facilities used in local distribution. tract, agreement or arrangement shall in- ‘‘(5) The Commission, after consultation ‘‘(d) EXEMPTION TERMINATION.—Whenever clude— with the ERO and the State taking action, the Commission, after an evidentiary hear- (1) performance standards for operation may stay the effectiveness of any State ac- ing held upon a complaint and after giving and use of the transmission system that the tion, pending the Commission’s issuance of a consideration to reliability standards estab- head of the Federal utility determines nec- final order. lished under section 215, finds on the basis of essary or appropriate, including standards ‘‘(j) REGIONAL ADVISORY BODIES.—The a preponderance of the evidence that any ex- that assure recovery of all the Federal util- Commission shall establish a regional advi- emption granted pursuant to subsection (b) ity’s costs and expenses related to the trans- sory body on the petition of at least 2⁄3 of the unreasonably impairs the continued reli- mission facilities that are the subject of the States within a region that have more than ability of an interconnected transmission contract, agreement or other arrangement; 1⁄2 of their electric load served within the re- system, it shall revoke the exemption grant- consistency with existing contracts and gion. A regional advisory body shall be com- ed to that transmitting utility. third-party financing arrangements; and

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00199 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.100 H20PT1 H2352 CONGRESSIONAL RECORD — HOUSE April 20, 2005 consistency with said Federal utility’s statu- ‘‘(3)(A) Not later than 2 years after the en- ‘‘(i) time-of-use pricing whereby electricity tory authorities, obligations, and limita- actment of this paragraph, each State regu- prices are set for a specific time period on an tions; latory authority (with respect to each elec- advance or forward basis, typically not (2) provisions for monitoring and oversight tric utility for which it has ratemaking au- changing more often than twice a year, by the Federal utility of the RTO’s or ISO’s thority) and each nonregulated electric util- based on the utility’s cost of generating and/ fulfillment of the terms and conditions of ity shall commence the consideration re- or purchasing such electricity at the whole- the contract, agreement or other arrange- ferred to in section 111, or set a hearing date sale level for the benefit of the consumer. ment, including a provision for the resolu- for such consideration, with respect to each Prices paid for energy consumed during tion of disputes through arbitration or other standard established by paragraphs (11) these periods shall be pre-established and means with the regional transmission orga- through (13) of section 111(d). known to consumers in advance of such con- nization or with other participants, notwith- ‘‘(B) Not later than 3 years after the date sumption, allowing them to vary their de- standing the obligations and limitations of of the enactment of this paragraph, each mand and usage in response to such prices any other law regarding arbitration; and State regulatory authority (with respect to and manage their energy costs by shifting (3) a provision that allows the Federal util- each electric utility for which it has rate- usage to a lower cost period or reducing ity to withdraw from the RTO or ISO and making authority), and each nonregulated their consumption overall; electric utility, shall complete the consider- terminate the contract, agreement or other ‘‘(ii) critical peak pricing whereby time-of- ation, and shall make the determination, re- arrangement in accordance with its terms. use prices are in effect except for certain ferred to in section 111 with respect to each peak days, when prices may reflect the costs Neither this section, actions taken pursuant standard established by paragraphs (11) of generating and/or purchasing electricity to it, nor any other transaction of a Federal through (13) of section 111(d).’’. at the wholesale level and when consumers utility using an RTO or ISO shall confer (2) FAILURE TO COMPLY.—Section 112(c) of may receive additional discounts for reduc- upon the Federal Energy Regulatory Com- the Public Utility Regulatory Policies Act of ing peak period energy consumption; and mission jurisdiction or authority over the 1978 (16 U.S.C. 2622(c)) is amended by adding ‘‘(iii) real-time pricing whereby electricity Federal utility’s electric generation assets, at the end the following: prices are set for a specific time period on an electric capacity or energy that the Federal ‘‘In the case of each standard established by utility is authorized by law to market, or advanced or forward basis, reflecting the paragraphs (11) through (13) of section 111(d), utility’s cost of generating and/or purchasing the Federal utility’s power sales activities. the reference contained in this subsection to (c) EXISTING STATUTORY AND OTHER OBLI- electricity at the wholesale level, and may the date of enactment of this Act shall be change as often as hourly. GATIONS.— deemed to be a reference to the date of en- ‘‘(C) Each electric utility subject to sub- (1) SYSTEM OPERATION REQUIREMENTS.—No actment of such paragraphs (11) through paragraph (A) shall provide each customer statutory provision requiring or authorizing (13).’’. a Federal utility to transmit electric power requesting a time-based rate with a time- (3) PRIOR STATE ACTIONS.— or to construct, operate or maintain its based meter capable of enabling the utility (A) IN GENERAL.—Section 112 of the Public and customer to offer and receive such rate, transmission system shall be construed to Utility Regulatory Policies Act of 1978 (16 respectively. prohibit a transfer of control and use of its U.S.C. 2622) is amended by adding at the end ‘‘(D) For purposes of implementing this transmission system pursuant to, and sub- the following: ject to all requirements of subsection (b). ‘‘(d) PRIOR STATE ACTIONS.—Subsections paragraph, any reference contained in this (2) OTHER OBLIGATIONS.—This subsection (b) and (c) of this section shall not apply to section to the date of enactment of the Pub- shall not be construed to— the standards established by paragraphs (11) lic Utility Regulatory Policies Act of 1978 (A) suspend, or exempt any Federal utility through (13) of section 111(d) in the case of shall be deemed to be a reference to the date from, any provision of existing Federal law, any electric utility in a State if, before the of enactment of this paragraph. including but not limited to any requirement enactment of this subsection— ‘‘(E) In a State that permits third-party or direction relating to the use of the Fed- ‘‘(1) the State has implemented for such marketers to sell electric energy to retail eral utility’s transmission system, environ- utility the standard concerned (or a com- electric consumers, such consumers shall be mental protection, fish and wildlife protec- parable standard); entitled to receive the same time-based me- tion, flood control, navigation, water deliv- ‘‘(2) the State regulatory authority for tering and communications device and serv- ery, or recreation; or such State or relevant nonregulated electric ice as a retail electric consumer of the elec- (B) authorize abrogation of any contract or utility has conducted a proceeding to con- tric utility. treaty obligation. sider implementation of the standard con- ‘‘(F) Notwithstanding subsections (b) and (3) REPEAL.—Section 311 of title III of Ap- cerned (or a comparable standard) for such (c) of section 112, each State regulatory au- pendix B of the Act of October 27, 2000 (P.L. utility; or thority shall, not later than 18 months after 106–377, section 1(a)(2); 114 Stat. 1441, 1441A– ‘‘(3) the State legislature has voted on the the date of enactment of this paragraph con- 80; 16 U.S.C. 824n) is repealed. implementation of such standard (or a com- duct an investigation in accordance with sec- Subtitle C—Amendments to PURPA parable standard) for such utility.’’. tion 115(i) and issue a decision whether it is appropriate to implement the standards set SEC. 1251. NET METERING AND ADDITIONAL (B) CROSS REFERENCE.—Section 124 of such STANDARDS. Act (16 U.S.C. 2634) is amended by adding the out in subparagraphs (A) and (C).’’. (b) STATE INVESTIGATION OF DEMAND RE- (a) ADOPTION OF STANDARDS.—Section following at the end thereof: ‘‘In the case of SPONSE AND TIME-BASED METERING.—Section 111(d) of the Public Utility Regulatory Poli- each standard established by paragraphs (11) 115 of the Public Utilities Regulatory Poli- cies Act of 1978 (16 U.S.C. 2621(d)) is amended through (13) of section 111(d), the reference cies Act of 1978 (16 U.S.C. 2625) is amended as by adding at the end the following: contained in this subsection to the date of follows: ‘‘(11) NET METERING.—Each electric utility enactment of this Act shall be deemed to be (1) By inserting in subsection (b) after the shall make available upon request net me- a reference to the date of enactment of such phrase ‘‘the standard for time-of-day rates tering service to any electric consumer that paragraphs (11) through (13).’’. established by section 111(d)(3)’’ the fol- the electric utility serves. For purposes of SEC. 1252. SMART METERING. lowing: ‘‘and the standard for time-based me- this paragraph, the term ‘net metering serv- (a) IN GENERAL.—Section 111(d) of the Pub- tering and communications established by ice’ means service to an electric consumer lic Utilities Regulatory Policies Act of 1978 section 111(d)(14)’’. under which electric energy generated by (16 U.S.C. 2621(d)) is amended by adding at (2) By inserting in subsection (b) after the that electric consumer from an eligible on- the end the following: phrase ‘‘are likely to exceed the metering’’ site generating facility and delivered to the ‘‘(14) TIME-BASED METERING AND COMMU- the following: ‘‘and communications’’. local distribution facilities may be used to NICATIONS.— (3) By adding the at the end the following: offset electric energy provided by the elec- ‘‘(A) Not later than 18 months after the ‘‘(i) TIME-BASED METERING AND COMMUNICA- date of enactment of this paragraph, each tric utility to the electric consumer during TIONS.—In making a determination with re- the applicable billing period. electric utility shall offer each of its cus- spect to the standard established by section ‘‘(12) FUEL SOURCES.—Each electric utility tomer classes, and provide individual cus- 111(d)(14), the investigation requirement of shall develop a plan to minimize dependence tomers upon customer request, a time-based section 111(d)(14)(F) shall be as follows: Each on 1 fuel source and to ensure that the elec- rate schedule under which the rate charged State regulatory authority shall conduct an tric energy it sells to consumers is generated by the electric utility varies during different investigation and issue a decision whether or using a diverse range of fuels and tech- time periods and reflects the variance, if not it is appropriate for electric utilities to nologies, including renewable technologies. any, in the utility’s costs of generating and provide and install time-based meters and ‘‘(13) FOSSIL FUEL GENERATION EFFI- purchasing electricity at the wholesale level. communications devices for each of their CIENCY.—Each electric utility shall develop The time-based rate schedule shall enable customers which enable such customers to and implement a 10-year plan to increase the the electric consumer to manage energy use participate in time-based pricing rate sched- efficiency of its fossil fuel generation.’’. and cost through advanced metering and ules and other demand response programs.’’. (b) COMPLIANCE.— communications technology. (c) FEDERAL ASSISTANCE ON DEMAND RE- (1) TIME LIMITATIONS.—Section 112(b) of the ‘‘(B) The types of time-based rate sched- SPONSE.—Section 132(a) of the Public Utility Public Utility Regulatory Policies Act of ules that may be offered under the schedule Regulatory Policies Act of 1978 (16 U.S.C. 1978 (16 U.S.C. 2622(b)) is amended by adding referred to in subparagraph (A) include, 2642(a)) is amended by striking ‘‘and’’ at the at the end the following: among others— end of paragraph (3), striking the period at

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00200 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.100 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2353 the end of paragraph (4) and inserting ‘‘; mand response systems shall be facilitated. pacity, which information the person or any and’’, and by adding the following at the end It is further the policy of the United States other entity knew to be false at the time of thereof: that the benefits of such demand response the reporting, to a Federal agency with in- ‘‘(5) technologies, techniques, and rate- that accrue to those not deploying such tent to fraudulently affect the data being making methods related to advanced meter- technology and devices, but who are part of compiled by such Federal agency. ing and communications and the use of these the same regional electricity entity, shall be ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRAD- technologies, techniques and methods in de- recognized. ING. mand response programs.’’. (g) TIME LIMITATIONS.—Section 112(b) of ‘‘(a) PROHIBITION.—No person or other enti- (d) FEDERAL GUIDANCE.—Section 132 of the the Public Utility Regulatory Policies Act of ty (including an entity described in section Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding 201(f)) shall willfully and knowingly enter 1978 (16 U.S.C. 2642) is amended by adding the at the end the following: into any contract or other arrangement to following at the end thereof: ‘‘(4)(A) Not later than 1 year after the en- execute a ‘round trip trade’ for the purchase ‘‘(d) DEMAND RESPONSE.—The Secretary actment of this paragraph, each State regu- or sale of electric energy at wholesale. shall be responsible for— latory authority (with respect to each elec- ‘‘(b) DEFINITION.—For the purposes of this ‘‘(1) educating consumers on the avail- tric utility for which it has ratemaking au- section, the term ‘round trip trade’ means a ability, advantages, and benefits of advanced thority) and each nonregulated electric util- transaction, or combination of transactions, metering and communications technologies, ity shall commence the consideration re- in which a person or any other entity— including the funding of demonstration or ferred to in section 111, or set a hearing date ‘‘(1) enters into a contract or other ar- pilot projects; for such consideration, with respect to the rangement to purchase from, or sell to, any ‘‘(2) working with States, utilities, other standard established by paragraph (14) of sec- other person or other entity electric energy energy providers and advanced metering and tion 111(d). at wholesale; communications experts to identify and ad- ‘‘(B) Not later than 2 years after the date ‘‘(2) simultaneously with entering into the dress barriers to the adoption of demand re- of the enactment of this paragraph, each contract or arrangement described in para- sponse programs; and State regulatory authority (with respect to graph (1), arranges a financially offsetting ‘‘(3) not later than 180 days after the date each electric utility for which it has rate- trade with such other person or entity for of enactment of the Energy Policy Act of making authority), and each nonregulated the same such electric energy, at the same 2005, providing Congress with a report that electric utility, shall complete the consider- location, price, quantity and terms so that, identifies and quantifies the national bene- ation, and shall make the determination, re- collectively, the purchase and sale trans- fits of demand response and makes a rec- ferred to in section 111 with respect to the actions in themselves result in no financial ommendation on achieving specific levels of standard established by paragraph (14) of sec- gain or loss; and such benefits by January 1, 2007.’’. tion 111(d).’’. ‘‘(3) enters into the contract or arrange- (e) DEMAND RESPONSE AND REGIONAL CO- (h) FAILURE TO COMPLY.—Section 112(c) of ment with a specific intent to fraudulently ORDINATION.— the Public Utility Regulatory Policies Act of affect reported revenues, trading volumes, or (1) IN GENERAL.—It is the policy of the 1978 (16 U.S.C. 2622(c)) is amended by adding prices.’’. United States to encourage States to coordi- at the end the following: nate, on a regional basis, State energy poli- SEC. 1283. FRAUDULENT OR MANIPULATIVE ‘‘In the case of the standard established by cies to provide reliable and affordable de- PRACTICES. paragraph (14) of section 111(d), the reference mand response services to the public. (a) UNLAWFUL ACTS.—It shall be unlawful contained in this subsection to the date of (2) TECHNICAL ASSISTANCE.—The Secretary for any entity, directly or indirectly, by the enactment of this Act shall be deemed to be of Energy shall provide technical assistance use of any means or instrumentality of a reference to the date of enactment of such to States and regional organizations formed interstate commerce or of the mails to use paragraph (14).’’. by 2 or more States to assist them in— or employ, in the transmission of electric en- (i) PRIOR STATE ACTIONS REGARDING SMART (A) identifying the areas with the greatest ergy in interstate commerce, the sale of METERING STANDARDS.— demand response potential; electric energy at wholesale in interstate (1) IN GENERAL.—Section 112 of the Public commerce, the transportation of natural gas (B) identifying and resolving problems in Utility Regulatory Policies Act of 1978 (16 transmission and distribution networks, in- in interstate commerce, or the sale in inter- U.S.C. 2622) is amended by adding at the end state commerce of natural gas for resale for cluding through the use of demand response; the following: (C) developing plans and programs to use ultimate public consumption for domestic, ‘‘(e) PRIOR STATE ACTIONS.—Subsections commercial, industrial, or any other use, demand response to respond to peak demand (b) and (c) of this section shall not apply to or emergency needs; and any fraudulent, manipulative, or deceptive the standard established by paragraph (14) of device or contrivance in contravention of (D) identifying specific measures con- section 111(d) in the case of any electric util- sumers can take to participate in these de- such rules and regulations as the Federal En- ity in a State if, before the enactment of this ergy Regulatory Commission may prescribe mand response programs. subsection— (3) REPORT.—Not later than 1 year after as necessary or appropriate in the public in- ‘‘(1) the State has implemented for such terest. the date of enactment of the Energy Policy utility the standard concerned (or a com- Act of 2005, the Commission shall prepare (b) APPLICATION OF FEDERAL POWER ACT TO parable standard); THIS ACT.—The provisions of section 307 and publish an annual report, by appropriate ‘‘(2) the State regulatory authority for region, that assesses demand response re- through 309 and 313 through 317 of the Fed- such State or relevant nonregulated electric eral Power Act shall apply to violations of sources, including those available from all utility has conducted a proceeding to con- consumer classes, and which identifies and the Electric Reliability Act of 2005 in the sider implementation of the standard con- same manner and to the same extent as such reviews— cerned (or a comparable standard) for such (A) saturation and penetration rate of ad- provisions apply to entities subject to Part utility within the previous 3 years; or II of the Federal Power Act. vanced meters and communications tech- ‘‘(3) the State legislature has voted on the nologies, devices and systems; SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIV- implementation of such standard (or a com- ERS, ETC UNDER FEDERAL POWER (B) existing demand response programs and parable standard) for such utility within the time-based rate programs; ACT. previous 3 years.’’. Part III of the Federal Power Act is (C) the annual resource contribution of de- (2) CROSS REFERENCE.—Section 124 of such mand resources; amended by inserting the following new sec- Act (16 U.S.C. 2634) is amended by adding the tion after section 319 and by redesignating (D) the potential for demand response as a following at the end thereof: ‘‘In the case of quantifiable, reliable resource for regional sections 320 and 321 as sections 321 and 322, the standard established by paragraph (14) of respectively: planning purposes; and section 111(d), the reference contained in this (E) steps taken to ensure that, in regional ‘‘SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, subsection to the date of enactment of this WAIVERS, ETC. transmission planning and operations, de- Act shall be deemed to be a reference to the ‘‘(a) RULE REQUIRED FOR CERTAIN WAIVERS, mand resources are provided equitable treat- date of enactment of such paragraph (14).’’. ment as a quantifiable, reliable resource rel- EXEMPTIONS, ETC.—Not later than 6 months ative to the resource obligations of any load- Subtitle D—Market Transparency, after the enactment of this Act, the Commis- serving entity, transmission provider, or Enforcement, and Consumer Protection sion shall promulgate a rule establishing transmitting party. SEC. 1282. MARKET MANIPULATION. specific criteria for providing an exemption, (f) FEDERAL ENCOURAGEMENT OF DEMAND Part II of the Federal Power Act (16 U.S.C. waiver, or other reduced or abbreviated form RESPONSE DEVICES.—It is the policy of the 824 et seq.) is amended by adding at the end of compliance with the requirements of sec- United States that time-based pricing and the following: tions 204, 301, 304, and 305 (including any pro- other forms of demand response, whereby ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFOR- spective blanket order). Such criteria shall electricity customers are provided with elec- MATION. be sufficient to insure that any such action tricity price signals and the ability to ben- ‘‘No person or other entity (including an taken by the Commission will be consistent efit by responding to them, shall be encour- entity described in section 201(f)) shall will- with the purposes of such requirements and aged, and the deployment of such technology fully and knowingly report any information will otherwise protect the public interest. and devices that enable electricity cus- relating to the price of electricity sold at ‘‘(b) MORATORIUM ON CERTAIN WAIVERS, EX- tomers to participate in such pricing and de- wholesale or availability of transmission ca- EMPTIONS, ETC.—After the date of enactment

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00201 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.101 H20PT1 H2354 CONGRESSIONAL RECORD — HOUSE April 20, 2005 of this section, the Commission may not The term does not include any bona fide transmit and direct orders for the purchase issue, adopt, order, approve, or promulgate newspaper, news magazine, or business or fi- and sale of electricity or natural gas in a any exemption, waiver, or other reduced or nancial publication of general and regular manner consistent with the establishment abbreviated form of compliance with the re- circulation, any self-regulatory organiza- and operation of an efficient, fair, and or- quirements of section 204, 301, 304, or 305 (in- tion, any bank, broker, dealer, building and derly market system for electricity and nat- cluding any prospective blanket order) until loan, savings and loan, or homestead associa- ural gas; and after the rule promulgated under subsection tion, or cooperative bank, if such bank, (F) assure equal regulation of all markets (a) has taken effect. broker, dealer, association, or cooperative involving the purchase or sale of electric ‘‘(c) PREVIOUS FERC ACTION.—The Commis- bank would be deemed to be an electric power, natural gas, the transmission of elec- sion shall undertake a review, by rule or power or natural gas information processor tric energy, or the transportation of natural order, of each exemption, waiver, or other re- solely by reason of functions performed by gas and all persons effecting transactions in- duced or abbreviated form of compliance de- such institutions as part of customary bank- volving the purchase or sale of electric scribed in subsection (a) that was taken be- ing, brokerage, dealing, association, or coop- power, natural gas, the transmission of elec- fore the date of enactment of this section. erative bank activities, or any common car- tric energy, or the transportation of natural No such action may continue in force and ef- rier, as defined in section 3 of the Commu- gas. nications Act of 1934, subject to the jurisdic- fect after the date 18 months after the date (c) RELATED COMMODITIES.—For purposes of of enactment of this section unless the Com- tion of the Federal Communications Com- this section, the phrase ‘‘purchase or sale of mission finds that such action complies with mission or a State commission, as defined in electric power, natural gas, the transmission section 3 of that Act, unless the Commission the rule under subsection (a). of electric energy, or the transportation of determines that such carrier is engaged in ‘‘(d) EXEMPTION UNDER 204(F) NOT APPLICA- natural gas’’ includes the purchase or sale of the business of collecting, processing, or pre- BLE.—For purposes of this section, in apply- any commodity (as defined in the Commod- paring for distribution or publication, infor- ing section 204, the provisions of section ities Exchange Act) relating to any such pur- mation with respect to transactions in or 204(f) shall not apply.’’. quotations involving the purchase or sale of chase or sale if such commodity is excluded SEC. 1285. REPORTING REQUIREMENTS IN ELEC- electric power, natural gas, the transmission from regulation under the Commodities Ex- TRIC POWER SALES AND TRANS- of electric energy, or the transportation of change Act pursuant to section 2 of that Act. MISSION. natural gas. (d) PROHIBITION.—No person who owns, con- (a) AUDIT TRAILS.—Section 304 of the Fed- (b) PROHIBITION.—No electric power or nat- trols, or is under the control or ownership of eral Power Act is amended by adding the fol- ural gas information processor may make a public utility, a natural gas company, or a lowing new subsection at the end thereof: use of the mails or any means or instrumen- public utility holding company may own, ‘‘(c)(1) The Commission shall, by rule or tality of interstate commerce— control, or operate any electronic computer order, require each person or other entity en- (1) to collect, process, distribute, publish, network or other mulitateral trading facility gaged in the transmission of electric energy or prepare for distribution or publication utilized to trade electricity or natural gas. in interstate commerce or the sale of elec- any information with respect to quotations SEC. 1287. PENALTIES. tric energy at wholesale in interstate com- for, or transactions involving the purchase (a) CRIMINAL PENALTIES.—Section 316 of merce, and each broker, dealer, and power or sale of electric power, natural gas, the the Federal Power Act (16 U.S.C. 825o(c)) is marketer involved in any such transmission transmission of electric energy, or the trans- amended as follows: or sale, to maintain, and periodically submit portation of natural gas, or (1) By striking ‘‘$5,000’’ in subsection (a) to the Commission, such records, in elec- (2) to assist, participate in, or coordinate and inserting ‘‘$5,000,000 for an individual tronic form, of each transaction relating to the distribution or publication of such infor- and $25,000,000 for any other defendant’’ and such transmission or sale as may be nec- mation in contravention of such rules and by striking out ‘‘two years’’ and inserting essary to determine whether any person has regulations as the Federal Energy Regu- ‘‘five years’’ . employed any fraudulent, manipulative, or latory Commission shall prescribe as nec- (2) By striking ‘‘$500’’ in subsection (b) and deceptive device or contrivance in con- essary or appropriate in the public interest inserting ‘‘$1,000,000’’. travention of rules promulgated by the Com- to (3) By striking subsection (c). mission. (A) prevent the use, distribution, or publi- (b) CIVIL PENALTIES.—Section 316A of the ‘‘(2) Section 201(f) shall not limit the appli- cation of fraudulent, deceptive, or manipula- Federal Power Act (16 U.S.C. 825o091) is cation of this subsection.’’. tive information with respect to quotations amended as follows: (b) NATURAL GAS.—Section 8 of the Natural for and transactions involving the purchase (1) By striking ‘‘section 211, 212, 213, or 214’’ Gas Act is amended by adding the following or sale of electric power, natural gas, the each place it appears and inserting ‘‘Part new subsection at the end thereof: transmission of electric energy, or the trans- II’’. ‘‘(d) The Commission shall, by rule or portation of natural gas; (2) By striking ‘‘$10,000 for each day that order, require each person or other entity en- (B) assure the prompt, accurate, reliable, such violation continues’’ and inserting ‘‘the gaged in the transportation of natural gas in and fair collection, processing, distribution, greater of $1,000,000 or three times the profit interstate commerce, or the sale in inter- and publication of information with respect made or gain or loss avoided by reason of state commerce of natural gas for resale for to quotations for and transactions involving such violation’’. ultimate public consumption for domestic, the purchase or sale of electric power, nat- (3) By adding the following at the end commercial, industrial, or any other use, and ural gas, the transmission of electric energy, thereof: each broker, dealer, and power marketer in- or the transportation of natural gas, and the ‘‘(c) AUTHORITY OF A COURT TO PROHIBIT volved in any such transportation or sale, to fairness and usefulness of the form and con- PERSONS FROM CERTAIN ACTIVITIES.—In any maintain, and periodically submit to the tent of such information; proceeding under this section, the court may Commission, such records, in electronic (C) assure that all such information proc- censure, place limitations on the activities, form, of each transaction relating to such essors may, for purposes of distribution and functions, or operations of, suspend or re- transmission or sale as may be necessary to publication, obtain on fair and reasonable voke the ability of any entity (without re- determine whether any person has employed terms such information with respect to gard to section 201(f)) to participate in the any fraudulent, manipulative, or deceptive quotations for and transactions involving transmission of electric energy in interstate device or contrivance in contravention of the purchase or sale of electric power, nat- commerce or the sale of electric energy at rules promulgated by the Commission.’’. ural gas, the transmission of electric energy, wholesale in interstate commerce if it finds SEC. 1286. TRANSPARENCY. or the transportation of natural gas as is col- that such censure, placing of limitations, (a) DEFINITION.—As used in this section the lected, processed, or prepared for distribu- suspension, or revocation is in the public in- term ‘‘electric power or natural gas informa- tion or publication by any exclusive proc- terest and that one or more of the following tion processor’’ means any person engaged in essor of such information acting in such ca- applies to such entity: the business of— pacity; ‘‘(1) Such entity has willfully made or (1) collecting, processing, or preparing for (D) assure that, subject to such limitations caused to be made in any application or re- distribution or publication, or assisting, par- as the Commission, by rule, may impose as port required to be filed with the Commis- ticipating in, or coordinating the distribu- necessary or appropriate for the mainte- sion or with any other appropriate regu- tion or publication of, information with re- nance of fair and orderly markets, all per- latory agency, or in any proceeding before spect to transactions in or quotations in- sons may obtain on terms which are not un- the Commission, any statement which was volving the purchase or sale of electric reasonably discriminatory such information at the time and in the light of the cir- power, natural gas, the transmission of elec- with respect to quotations for and trans- cumstances under which it was made false or tric energy, or the transportation of natural actions involving the purchase or sale of misleading with respect to any material gas, or electric power, natural gas, the transmission fact, or has omitted to state in any such ap- (2) distributing or publishing (whether by of electric energy, or the transportation of plication or report any material fact which means of a ticker tape, a communications natural gas as is published or distributed by is required to be stated therein. network, a terminal display device, or other- any electric power or natural gas informa- ‘‘(2) Such entity has been convicted of any wise) on a current and continuing basis, in- tion processor; felony or misdemeanor or of a substantially formation with respect to such transactions (E) assure that all electricity and natural equivalent crime by a foreign court of com- or quotations. gas electronic communication networks petent jurisdiction which the court finds—

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00202 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.101 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2355 ‘‘(A) involves the purchase or sale of elec- ‘‘(B) violated any foreign statute or regula- ‘‘(B) arises out of the conduct of the busi- tricity, the taking of a false oath, the mak- tion regarding the transmission or sale of ness of transmitting natural gas in inter- ing of a false report, bribery, perjury, bur- electricity or natural gas; state commerce, or the selling in interstate glary, any substantially equivalent activity ‘‘(C) aided, abetted, counseled, com- commerce of natural gas for resale for ulti- however denominated by the laws of the rel- manded, induced, or procured the violation mate public consumption for domestic, com- evant foreign government, or conspiracy to by any person of any provision of any statu- mercial, industrial, or any other use; commit any such offense; tory provisions enacted by a foreign govern- ‘‘(C) involves the larceny, theft, robbery, ‘‘(B) arises out of the conduct of the busi- ment, or rules or regulations thereunder, extortion, forgery, counterfeiting, fraudu- ness of transmitting electric energy in inter- empowering a foreign regulatory authority lent concealment, embezzlement, fraudulent state commerce or selling or purchasing regarding transactions in electricity or nat- conversion, or misappropriation of funds, or electric energy at wholesale in interstate ural gas, or contracts of sale of electricity or securities, or substantially equivalent activ- commerce; natural gas, traded on or subject to the rules ity however denominated by the laws of the of a contract market or any board of trade, relevant foreign government; or ‘‘(C) involves the larceny, theft, robbery, or has been found, by a foreign regulatory ‘‘(D) involves the violation of section 152, extortion, forgery, counterfeiting, fraudu- authority, to have failed 1341, 1342, or 1343 or chapter 25 or 47 of title lent concealment, embezzlement, fraudulent 18, United States Code, or a violation of a conversion, or misappropriation of funds, or reasonably to supervise, with a view to pre- venting violations of such statutory provi- substantially equivalent foreign statute. securities, or substantially equivalent activ- ‘‘(3) Such entity is permanently or tempo- ity however denominated by the laws of the sions, rules, and regulations, another person who commits such a violation, if such other rarily enjoined by order, judgment, or decree relevant foreign government; or of any court of competent jurisdiction from ‘‘(D) involves the violation of section 152, person is subject to his supervision. ‘‘(7) Such entity is subject to any final acting as an investment adviser, under- 1341, 1342, or 1343 or chapter 25 or 47 of title order of a State commission (or any agency writer, broker, dealer, municipal securities 18, United States Code, or a violation of a or officer performing like functions), State dealer, government securities broker, gov- substantially equivalent foreign statute. authority that supervises or examines banks, ernment securities dealer, transfer agent, ‘‘(3) Such entity is permanently or tempo- savings associations, or credit unions, State foreign person performing a function sub- rarily enjoined by order, judgment, or decree insurance commission (or any agency or of- stantially equivalent to any of the above, or of any court of competent jurisdiction from fice performing like functions), an appro- entity or person required to be registered acting as an investment adviser, under- priate Federal banking agency (as defined in under the Commodity Exchange Act or any writer, broker, dealer, municipal securities section 3 of the Federal Deposit Insurance substantially equivalent foreign statute or dealer, government securities broker, gov- Act (12 U.S.C. 1813(q))), or the National Cred- regulation, or as an affiliated person or em- ernment securities dealer, transfer agent, it Union Administration, that— ployee of any investment company, bank, in- foreign person performing a function sub- ‘‘(A) bars such person from association surance company, foreign entity substan- stantially equivalent to any of the above, or with an entity regulated by such commis- tially equivalent to any of the above, or enti- entity or person required to be registered sion, authority, agency, or officer, or from ty or person required to be registered under under the Commodity Exchange Act or any engaging in the business of securities, insur- the Commodity Exchange Act or any sub- substantially equivalent foreign statute or ance, banking, savings association activities, stantially equivalent foreign statute or regu- regulation, or as an affiliated person or em- or credit union activities; or lation, or from engaging in or continuing ployee of any investment company, bank, in- ‘‘(B) constitutes a final order based on vio- any conduct or practice in connection with surance company, foreign entity substan- lations of any laws or regulations that pro- any such activity, or in connection with the tially equivalent to any of the above, or enti- hibit fraudulent, manipulative, or deceptive purchase or sale of any security. ty or person required to be registered under conduct.’’ ‘‘(4) Such entity has willfully violated any the Commodity Exchange Act or any sub- (4) Such entity is subject to statutory dis- provision of this Act. stantially equivalent foreign statute or regu- qualification within the meaning of section ‘‘(5) Such entity has willfully aided, abet- lation, or from engaging in or continuing 3(a)(39) of the Securities Exchange Act of ted, counseled, commanded, induced, or pro- cured the violation by any other person of any conduct or practice in connection with 1934.’’. any such activity, or in connection with the (c) NATURAL GAS ACT PENALTIES.—Section any provision of this Act, or has failed rea- purchase or sale of any security. 21 of the Natural Gas Act is amended by add- sonably to supervise, with a view to pre- ‘‘(4) Such entity has willfully violated any ing the following new subsection at the end venting violations of the provisions of this provision of this Act. thereof: Act, another person who commits such a vio- ‘‘(5) Such entity has willfully aided, abet- ‘‘(c) AUTHORITY OF A COURT TO PROHIBIT lation, if such other person is subject to his ted, counseled, commanded, induced, or pro- PERSONS FROM CERTAIN ACTIVITIES.—In any supervision. For the purposes of this para- graph no person shall be deemed to have cured the violation by any other person of proceeding under this section, the court may failed reasonably to supervise any other per- any provision of this Act, or has failed rea- censure, place limitations on the activities, son, if— sonably to supervise, with a view to pre- functions, or operations of, suspend or re- ‘‘(A) there have been established proce- venting violations of the provisions of this voke the ability of any entity (without re- dures, and a system for applying such proce- Act, another person who commits such a vio- gard to section 201(f)) to participate in the dures, which would reasonably be expected lation, if such other person is subject to his transportation of natural gas in interstate commerce, or the sale in interstate com- to prevent and detect, insofar as practicable, supervision. For the purposes of this para- merce of natural gas for resale for ultimate any such violation by such other person, and graph no person shall be deemed to have public consumption for domestic, commer- ‘‘(B) such person has reasonably discharged failed reasonably to supervise any other per- cial, industrial, or any other use if it finds the duties and obligations incumbent upon son, if— that such censure, placing of limitations, him by reason of such procedures and system ‘‘(A) there have been established proce- suspension, or revocation is in the public in- without reasonable cause to believe that dures, and a system for applying such proce- terest and that one or more of the following such procedures and system were not being dures, which would reasonably be expected applies to such entity: complied with. to prevent and detect, insofar as practicable, ‘‘(1) Such entity has willfully made or ‘‘(6) Such entity has been found by a for- any such violation by such other person, and caused to be made in any application or re- eign financial or energy regulatory author- ‘‘(B) such person has reasonably discharged port required to be filed with the Commis- ity to have— the duties and obligations incumbent upon sion or with any other appropriate regu- ‘‘(A) made or caused to be made in any ap- him by reason of such procedures and system latory agency, or in any proceeding before plication or report required to be filed with without reasonable cause to believe that the Commission, any statement which was a foreign regulatory authority, or in any such procedures and system were not being at the time and in the light of the cir- proceeding before a foreign financial or en- complied with. cumstances under which it was made false or ergy regulatory authority, any statement ‘‘(6) Such entity has been found by a for- misleading with respect to any material that was at the time and in the light of the eign financial or energy regulatory author- fact, or has omitted to state in any such ap- circumstances under which it was made false ity to have— plication or report any material fact which or misleading with respect to any material ‘‘(A) made or caused to be made in any ap- is required to be stated therein. fact, or has omitted to state in any applica- plication or report required to be filed with ‘‘(2) Such entity has been convicted of any tion or report to the foreign regulatory au- a foreign regulatory authority, or in any felony or misdemeanor or of a substantially thority any material fact that is required to proceeding before a foreign financial or en- equivalent crime by a foreign court of com- be stated therein; ergy regulatory authority, any statement petent jurisdiction which the court finds— ‘‘(B) violated any foreign statute or regula- that was at the time and in the light of the ‘‘(A) involves the purchase or sale of nat- tion regarding the transmission or sale of circumstances under which it was made false ural gas, the taking of a false oath, the mak- electricity or natural gas; or misleading with respect to any material ing of a false report, bribery, perjury, bur- ‘‘(C) aided, abetted, counseled, com- fact, or has omitted to state in any applica- glary, any substantially equivalent activity manded, induced, or procured the violation tion or report to the foreign regulatory au- however denominated by the laws of the rel- by any person of any provision of any statu- thority any material fact that is required to evant foreign government, or conspiracy to tory provisions enacted by a foreign govern- be stated therein; commit any such offense; ment, or rules or regulations thereunder,

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00203 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.101 H20PT1 H2356 CONGRESSIONAL RECORD — HOUSE April 20, 2005 empowering a foreign regulatory authority determined that such acquisition or owner- commerce and the transmission of electric regarding transactions in electricity or nat- ship is consistent with the public interest energy in interstate commerce.’’. ural gas, or contracts of sale of electricity or and the protection of consumers of such pub- SEC. 1295. CONSUMER PRIVACY AND UNFAIR natural gas, traded on or subject to the rules lic utility.’’. TRADE PRACTICES. of a contract market or any board of trade, SEC. 1291. REFUNDS UNDER THE FEDERAL (a) PRIVACY.—The Federal Trade Commis- or has been found, by a foreign regulatory POWER ACT. sion may issue rules protecting the privacy authority, to have failed reasonably to su- Section 206(b) of the Federal Power Act is of electric consumers from the disclosure of pervise, with a view to preventing violations amended as follows: consumer information obtained in connec- of such statutory provisions, rules, and regu- (1) By amending the first sentence to read tion with the sale or delivery of electric en- lations, another person who commits such a as follows: ‘‘In any proceeding under this ergy to electric consumers. violation, if such other person is subject to section, the refund effective date shall be the (b) SLAMMING.—The Federal Trade Com- his supervision. date of the filing of a complaint or the date mission may issue rules prohibiting the ‘‘(7) Such entity is subject to any final of the Commission motion initiating the pro- change of selection of an electric utility ex- order of a State commission (or any agency ceeding, except that in the case of a com- cept with the informed consent of the elec- or officer performing like functions), State plaint with regard to market-based rates, tric consumer or if approved by the appro- authority that supervises or examines banks, the Commission may establish an earlier re- priate State regulatory authority. savings associations, or credit unions, State fund effective date.’’. (c) CRAMMING.—The Federal Trade Com- insurance commission (or any agency or of- (2) By striking the second and third sen- mission may issue rules prohibiting the sale fice performing like functions), an appro- tences. of goods and services to an electric consumer priate Federal banking agency (as defined in (3) By striking out ‘‘the refund effective unless expressly authorized by law or the section 3 of the Federal Deposit Insurance date or by’’ and ‘‘, whichever is earlier,’’ in electric consumer. Act (12 U.S.C. 1813(q))), or the National Cred- the fifth sentence. (d) RULEMAKING.—The Federal Trade Com- it Union Administration, that— (4) In the seventh sentence by striking mission shall proceed in accordance with ‘‘(A) bars such person from association ‘‘through a date fifteen months after such re- section 553 of title 5, United States Code, with an entity regulated by such commis- fund effective date’’ and insert ‘‘and prior to when prescribing a rule under this section. sion, authority, agency, or officer, or from the conclusion of the proceeding’’ and by (e) STATE AUTHORITY.—If the Federal engaging in the business of securities, insur- striking the proviso. Trade Commission determines that a State’s ance, banking, savings association activities, SEC. 1292. ACCOUNTS AND REPORTS. regulations provide equivalent or greater or credit union activities; or Section 318 of the Federal Power Act is protection than the provisions of this sec- ‘‘(B) constitutes a final order based on vio- amended by adding the following at the end tion, such State regulations shall apply in lations of any laws or regulations that pro- thereof: ‘‘This section shall not apply to sec- that State in lieu of the regulations issued hibit fraudulent, manipulative, or deceptive tions 301 and 304 of this Act.’’. by the Commission under this section. conduct. SEC. 1293. MARKET-BASED RATES. (f) DEFINITIONS.—For purposes of this sec- ‘‘(8) Such entity is subject to statutory dis- Section 205 of the Federal Power Act is tion: qualification within the meaning of section amended by adding the following new sub- (1) STATE REGULATORY AUTHORITY.—The 3(a)(39) of the Securities Exchange Act of section at the end thereof: term ‘‘State regulatory authority’’ has the 1934.’’. ‘‘(g) For each public utility granted the au- meaning given that term in section 3(21) of SEC. 1288. REVIEW OF PUHCA EXEMPTIONS. thority by the Commission to sell electric the Federal Power Act (16 U.S.C. 796(21)). Not later than 12 months after the enact- energy at market-based rates, the Commis- (2) ELECTRIC CONSUMER AND ELECTRIC UTIL- ment of this Act the Securities and Ex- sion shall review the activities and charac- ITY.—The terms ‘‘electric consumer’’ and change Commission shall review each exemp- teristics of such utility not less frequently ‘‘electric utility’’ have the meanings given tion granted to any person under section 3(a) than annually to determine whether such those terms in section 3 of the Public Utility of the Public Utility Holding Company Act rates are just and reasonable. Each such util- Regulatory Policies Act of 1978 (16 U.S.C. of 1935 and shall review the action of persons ity shall notify the Commission promptly of 2602). operating pursuant to a claim of exempt sta- any change in the activities and characteris- ‘‘(d) The Commission shall, by rule or tus under section 3 to determine if such ex- tics relied upon by the Commission in grant- order, require each person or other entity en- emptions and claims are consistent with the ing such public utility the authority to sell gaged in the transportation of natural gas in requirements of such section 3(a) and wheth- electric energy at market-based rates. If the interstate commerce, or the sale in inter- er or not such exemptions or claims of ex- Commission finds that: state commerce of natural gas for resale for emption should continue in force and effect. ‘‘(1) a rate charged by a public utility au- ultimate public consumption for domestic, SEC. 1289. REVIEW OF ACCOUNTING FOR CON- thorized to sell electric energy at market- commercial, industrial, or any other use, and TRACTS INVOLVED IN ENERGY based rates is unjust, unreasonable, unduly each broker, dealer, and power marketer in- TRADING. discriminatory or preferential, volved in any such transportation or sale, to Not later than 12 months after the enact- ‘‘(2) the public utility has intentionally en- maintain, and periodically submit to the ment of this Act, the Comptroller General of gaged in an activity that violates any other Commission, such records, in electronic the United States shall submit to the Con- rule, tariff, or order of the Commission, or form, of each transaction relating to such gress a report of the results of its review of ‘‘(3) any violation of the Electric Reli- transmission or sale as may be necessary to accounting for contracts in energy trading ability Act of 2005, determine whether any person has employed and risk management activities. The review the Commission shall issue an order imme- any fraudulent, manipulative, or deceptive and report shall include, among other issues, diately modifying or revoking the authority device or contrivance in contravention of the use of mark-to-market accounting and of that public utility to sell electric energy rules promulgated by the Commission.’’. when gains and losses should be recognized, at market-based rates.’’. SEC. 1296. SAVINGS PROVISION. with a view toward improving the trans- SEC. 1294. ENFORCEMENT. Nothing in this title or in any amendment parency of energy trading activities for the (a) COMPLAINTS.—Section 306 of the Federal made by this title shall be construed to af- benefit of investors, consumers, and the in- Power Act (16 U.S.C. 825e) is amended as fol- fect the authority of any court to make a de- tegrity of these markets. lows: termination in any proceeding commenced SEC. 1290. PROTECTION OF FERC REGULATED (1) By inserting ‘‘electric utility,’’ after before the enactment of this Act regarding SUBSIDIARIES. ‘‘Any person,’’. the authority of the Federal Energy Regu- Section 205 of the Federal Power Act is (2) By inserting ‘‘, transmitting utility,’’ latory Commission to permit any person to amended by adding after subsection (f) the after ‘‘licensee’’ each place it appears. sell or distribute electric energy at market- following new subsection: (b) REVIEW OF COMMISSION ORDERS.—Sec- based rates. ‘‘(g) RULES AND PROCEDURES TO PROTECT tion 313(a) of the Federal Power Act (16 In section 25C(b)(1)(A) of the Internal Rev- CONSUMERS OF PUBLIC UTILITIES.—Not later U.S.C. 8251) is amended by inserting ‘‘electric enue Code of 1986, as proposed to be added by than 9 months after the date of enactment of utility,’’ after ‘‘person,’’ in the first 2 places section 1311 of the bill, insert after clause this Act, the Commission shall adopt rules it appears and by striking ‘‘any person un- (iii) the following new clauses: and procedures for the protection of electric less such person’’ and inserting ‘‘any entity (iv) $150 for each electric heat pump water consumers from self-dealing, interaffiliate unless such entity’’. heater, abuse, and other harmful actions taken by (c) INVESTIGATIONS.—Section 307(a) of the (v) $200 for each advanced natural gas, oil, persons owning or controlling public utili- Federal Power Act (16 U.S.C. 825f(a)) is propane furnace, or hot water boiler in- ties. Such rules shall ensure that no asset of amended as follows: stalled in 2006 ($150 for equipment installed a public utility company shall be used as col- (1) By inserting ‘‘, electric utility, trans- in 2007, $100 for equipment installed in 2008), lateral for indebtedness incurred by the hold- mitting utility, or other entity’’ after ‘‘per- (vi) $150 for each advanced natural gas, oil, ing company of, and any affiliate of, such son’’ each time it appears. or propane water heater, public utility company, and no public utility (2) By striking the period at the end of the (vii) $50 for each mid-efficiency natural shall acquire or own any securities of the first sentence and inserting the following: gas, oil, or propane water heater, holding company or other affiliates of the ‘‘or in obtaining information about the sale (viii) $50 for an advanced main air circu- holding company unless the Commission has of electric energy at wholesale in interstate lating fan which is installed in a furnace

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00204 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.101 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2357 with an Annual Fuel Utilization Efficiency the standard Department of Energy test pro- new energy efficient home, such term means of less than 92 percent, cedure, the person designated as such by the owner (ix) $150 for each advanced combination (H) a geothermal heat pump which has of such home. space and water heating system, water heating capability by a desuperheater ‘‘(2) ENERGY EFFICIENT PROPERTY.—The (x) $50 for each mid-efficiency combination or full-condensing option and which has an term ‘energy efficient property’ means any space and water heating system, energy efficiency ratio (EER) of at least 18 energy efficient building envelope compo- (xi) $250 for each geothermal heat pump, for ground-loop systems, at least 21 for nent, and any energy efficient heating or and ground-water systems, and at least 17 for di- cooling equipment or system, which can, in- (xii) $250 for each advanced central air con- rect GeoExchange systems; and dividually or in combination with other ditioner or central heat pump ($150 for equip- (I) a central air conditioner or central heat components, result in a dwelling unit meet- ment installed in 2008). pump which meets the Energy Star specifica- ing the requirements of this section. In section 25C(a) of the Internal Revenue tions as set by the Environmental Protec- ‘‘(3) QUALIFIED NEW ENERGY EFFICIENT Code of 1986, as proposed to be added by sec- tion Agency. The specifications must be HOME.—The term ‘qualified new energy effi- tion 1311 of the bill, insert after paragraph made effective after December 31, 2005, and cient home’ means a dwelling unit— (3) the following new paragraph: must be current as of the date of the expend- ‘‘(A) located in the United States, (4) the energy efficient building property iture or made effective later in the calendar ‘‘(B) the construction of which is substan- described in clauses (iv) through (xii) of sub- year of the expenditure. tially completed after the date of the enact- section (b)(1)(A). (5) LABOR COSTS.—Expenditures for labor ment of this section, and In section 25C(b) of the Internal Revenue costs properly allocable to the onsite prepa- ‘‘(C) which is— Code of 1986, as proposed to be added by sec- ration, assembly, or original installation of ‘‘(i) certified to have a level of annual tion 1311 of the bill, insert after paragraph the property and for piping or wiring to heating and cooling energy consumption (2) the following new paragraph: interconnect property described in paragraph which is at least 30 percent below the annual (3) SAFETY CERTIFICATIONS.—No credit shall (4) to the dwelling unit shall be taken into level of heating and cooling energy consump- be allowed under this section for an item of account for purposes of this section. tion of a comparable dwelling unit con- property specified in clause (iv) through (xii) In subtitle B of title XIII, add at the end structed in accordance with the standards of of paragraph (1) unless such property meets the following: chapter 4 of the 2003 International Energy the performance and quality standards, and SEC. 1318. CREDIT FOR CONSTRUCTION OF NEW Conservation Code, as such Code (including the certification requirements (if any), ENERGY EFFICIENT HOMES. supplements) is in effect on the date of the which— (a) IN GENERAL.—Subpart D of part IV of enactment of this section, and for which the (A) have been prescribed by the Secretary subchapter A of chapter 1 (relating to busi- heating and cooling equipment efficiencies by regulations (after consultation with the ness related credits) is amended by adding at correspond to the minimum allowed under Secretary of Energy or the Administrator of the end the following new section: the regulations established by the Depart- the Environmental Protection Agency, as ‘‘SEC. 45K. NEW ENERGY EFFICIENT HOME CRED- ment of Energy pursuant to the National Ap- appropriate), IT. pliance Energy Conservation Act of 1987 and (B) in the case of the energy efficiency ‘‘(a) IN GENERAL.—For purposes of section in effect at the time of construction, and to ratio (EER) for property described in clause 38, in the case of an eligible contractor with have building envelope component improve- (viii) or (ix) of subsection (d)(1)(B)— respect to a qualified new energy efficient ments account for at least 1⁄3 of such 30 per- (i) require measurements to be based on home, the credit determined under this sec- cent, published data which is tested by manufac- tion for the taxable year with respect to ‘‘(ii) certified to have a level of annual turers at 95 degrees Fahrenheit, and such home is an amount equal to the aggre- heating and cooling energy consumption (ii) do not require ratings to be based on gate adjusted bases of all energy efficient which is at least 50 percent below such an- certified data of the Air Conditioning and property installed in such home during con- nual level and to have building envelope Refrigeration Institute, and struction of such home. component improvements account for at ‘‘(b) LIMITATIONS.— (C) are in effect at the time of the acquisi- least 1⁄5 of such 50 percent, tion of the property. ‘‘(1) MAXIMUM CREDIT.— ‘‘(iii) a manufactured home which meets In section 25C(c) of the Internal Revenue ‘‘(A) IN GENERAL.—The credit allowed by the requirements of clause (i) and which con- Code of 1986, as proposed to be added by sec- this section with respect to a dwelling unit forms to Federal Manufactured Home Con- tion 1311 of the bill, add at the end the fol- shall not exceed— struction and Safety Standards (section 3280 lowing new paragraphs: ‘‘(i) in the case of a dwelling unit described of title 24, Code of Federal Regulations), or (4) ENERGY EFFICIENT BUILDING PROPERTY.— in clause (i) or (iii) of subsection (c)(3)(C), ‘‘(iv) a manufactured home which meets The term ‘‘energy efficient building prop- $1,000, and the requirements of clause (ii) and which erty’’ means— ‘‘(ii) in the case of a dwelling unit de- conforms to Federal Manufactured Home (A) an electric heat pump water heater scribed in clause (ii) or (iv) of subsection Construction and Safety Standards (section which yields an energy factor of at least 1.7 (c)(3)(C), $2,000. 3280 of title 24, Code of Federal Regulations). in the standard Department of Energy test ‘‘(B) PRIOR CREDIT AMOUNTS ON SAME ‘‘(4) CONSTRUCTION.—The term ‘construc- procedure, DWELLING UNIT TAKEN INTO ACCOUNT.—If a tion’ includes substantial reconstruction and (B) an advanced natural gas, oil, propane credit was allowed under subsection (a) with rehabilitation. furnace, or hot water boiler which achieves respect to a dwelling unit in 1 or more prior ‘‘(5) ACQUIRE.—The term ‘acquire’ includes at least 92 percent annual fuel utilization ef- taxable years, the amount of the credit oth- purchase and, in the case of reconstruction ficiency (AFUE) and which has an advanced erwise allowable for the taxable year with and rehabilitation, such term includes a main air circulating fan, respect to such dwelling unit shall be re- binding written contract for such recon- (C) an advanced natural gas, oil, or pro- duced by the sum of the credits allowed struction or rehabilitation. pane water heater which has an energy fac- under subsection (a) with respect to the ‘‘(6) BUILDING ENVELOPE COMPONENT.—The tor of at least 0.80 in the standard Depart- dwelling unit for all prior taxable years. term ‘building envelope component’ means— ment of Energy test procedure, ‘‘(2) COORDINATION WITH CERTAIN CREDITS.— ‘‘(A) any sealant, insulation material, or (D) a mid-efficiency natural gas, oil, or For purposes of this section— system which is specifically and primarily propane water heater which has an energy ‘‘(A) the basis of any property referred to designed to reduce the heat loss or gain of a factor of at least 0.65 but less than 0.80 in the in subsection (a) shall be reduced by that dwelling unit when installed in or on such standard Department of Energy test proce- portion of the basis of any property which is dwelling unit, dure, attributable to qualified rehabilitation ex- ‘‘(B) exterior windows (including sky- (E) an advanced main air circulating fan penditures (as defined in section 47(c)(2)) or lights), which has an annual electricity use of no to the energy percentage of energy property ‘‘(C) exterior doors, and more than 2 percent of the total annual en- (as determined under section 48(a)), and ‘‘(D) any metal roof installed on a dwelling ergy use (as determined in the standard De- ‘‘(B) expenditures taken into account unit, but only if such roof has appropriate partment of Energy test procedures) and under section 47 or 48(a) shall not be taken pigmented coatings which— which is used in a new natural gas, propane, into account under this section. ‘‘(i) are specifically and primarily designed or oil-fired furnace, ‘‘(c) DEFINITIONS.—For purposes of this sec- to reduce the heat gain of such dwelling (F) an advanced combination space and tion— unit, and water heating system which has a combined ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eli- ‘‘(ii) meet the Energy Star program re- energy factor of at least 0.80 and a combined gible contractor’ means— quirements. annual fuel utilization efficiency (AFUE) of ‘‘(A) the person who constructed the quali- ‘‘(d) CERTIFICATION.— at least 78 percent in the standard Depart- fied new energy efficient home, or ‘‘(1) METHOD OF CERTIFICATION.—A certifi- ment of Energy test procedure, ‘‘(B) in the case of a qualified new energy cation described in subsection (c)(3)(C) shall (G) a mid-efficiency combination space and efficient home which is a manufactured be determined in accordance with guidance water heating system which has a combined home, the manufactured home producer of prescribed by the Secretary, after consulta- energy factor of at least 0.65 but less than such home. tion with the Secretary of Energy. Such 0.80 and a combined annual fuel utilization If more than 1 person is described in subpara- guidance shall specify procedures and meth- efficiency (AFUE) of at least 78 percent in graph (A) or (B) with respect to any qualified ods for calculating energy and cost savings.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00205 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.102 H20PT1 H2358 CONGRESSIONAL RECORD — HOUSE April 20, 2005

‘‘(2) FORM.—A certification described in for individuals and corporations) is amended which describe in detail methods for calcu- subsection (c)(3)(C) shall be made in writing by inserting after section 179B the following lating and verifying energy and power con- in a manner which specifies in readily new section: sumption and cost, based on the provisions verifiable fashion the energy efficient build- ‘‘SEC. 179C. ENERGY EFFICIENT COMMERCIAL of the 2005 California Nonresidential Alter- ing envelope components and energy effi- BUILDINGS DEDUCTION. native Calculation Method Approval Manual cient heating or cooling equipment installed ‘‘(a) IN GENERAL.—There shall be allowed or, in the case of residential property, the and their respective rated energy efficiency as a deduction an amount equal to the cost 2005 California Residential Alternative Cal- performance. of energy efficient commercial building prop- culation Method Approval Manual. These ‘‘(e) BASIS ADJUSTMENT.—For purposes of erty placed in service during the taxable regulations shall meet the following require- this subtitle, if a credit is determined under year. ments: this section for any expenditure with respect ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The ‘‘(A) In calculating tradeoffs and energy to any property, the increase in the basis of deduction under subsection (a) with respect performance, the regulations shall prescribe such property which would (but for this sub- to any building for the taxable year and all the costs per unit of energy and power, such section) result from such expenditure shall prior taxable years shall not exceed an as kilowatt hour, kilowatt, gallon of fuel oil, be reduced by the amount of the credit so de- amount equal to the product of— and cubic foot or Btu of natural gas, which termined. ‘‘(1) $2.25, and may be dependent on time of usage. If a ‘‘(f) SPECIAL RULE WITH RESPECT TO BUILD- ‘‘(2) the square footage of the building. State has developed annual energy usage and INGS WITH ENERGY EFFICIENT PROPERTY.—In ‘‘(c) DEFINITIONS.—For purposes of this sec- cost calculation procedures based on time of any case in which a deduction under section tion— usage costs for use in the performance stand- 200 or a credit under section 25C has been al- ‘‘(1) ENERGY EFFICIENT COMMERCIAL BUILD- ards of the State’s building energy code be- lowed with respect to property in connection ING PROPERTY.—The term ‘energy efficient fore the effective date of this section, the with a dwelling unit, the level of annual commercial building property’ means prop- State may use those annual energy usage heating and cooling energy consumption of erty— and cost calculation procedures in lieu of the comparable dwelling unit referred to in ‘‘(A) which is installed on or in any build- those adopted by the Secretary. clauses (i) and (ii) of subsection (c)(3)(C) ing located in the United States, ‘‘(B) The calculation methods under this shall be determined assuming such com- ‘‘(B) which is installed as part of— paragraph need not comply fully with sec- parable dwelling unit contains the property ‘‘(i) the interior lighting systems, tion 11 of Standard 90.1–2001. for which such deduction or credit has been ‘‘(ii) the heating, cooling, ventilation, and ‘‘(C) The calculation methods shall be fuel allowed. hot water systems, or neutral, such that the same energy effi- ‘‘(g) APPLICATION OF SECTION.— ‘‘(iii) the building envelope, and ciency features shall qualify a building for ‘‘(1) 50 PERCENT HOMES.—In the case of any ‘‘(C) which is certified in accordance with the deduction under this section regardless dwelling unit described in clause (ii) or (iv) subsection (d)(6) as being installed as part of of whether the heating source is a gas or oil of subsection (c)(3)(C), subsection (a) shall a plan designed to reduce the total annual furnace or an electric heat pump. The ref- apply to qualified new energy efficient energy and power costs with respect to the erence building for a proposed design which homes acquired during the period beginning interior lighting systems, heating, cooling, employs electric resistance heating shall be on the date of the enactment of this section, ventilation, and hot water systems of the modeled as using a heat pump. and ending on December 31, 2009. building by 50 percent or more in comparison ‘‘(D) The calculation methods shall provide ‘‘(2) 30 PERCENT HOMES.—In the case of any to a reference building which meets the min- appropriate calculated energy savings for de- dwelling unit described in clause (i) or (iii) of imum requirements of Standard 90.1–2001 sign methods and technologies not otherwise subsection (c)(3)(C), subsection (a) shall using methods of calculation under sub- credited in either Standard 90.1–2001 or in the apply to qualified new energy efficient section (d)(2). 2005 California Nonresidential Alternative homes acquired during the period beginning A building described in subparagraph (A) Calculation Method Approval Manual, in- on the date of the enactment of this section, may include any residential rental property, cluding the following: and ending on December 31, 2007.’’. including any low-rise multifamily structure ‘‘(i) Natural ventilation. (b) CREDIT MADE PART OF GENERAL BUSI- or single family housing property which is ‘‘(ii) Evaporative cooling. NESS CREDIT.—Section 38(b) (relating to cur- not within the scope of Standard 90.1–2001, ‘‘(iii) Automatic lighting controls such as rent year business credit) is amended by but shall not include any qualified new en- occupancy sensors, photocells, and time- striking ‘‘plus’’ at the end of paragraph (19), ergy efficient home (within the meaning of clocks. by striking the period at the end of para- section 45K(d)(3)) for which a credit under ‘‘(iv) Daylighting. graph (18) and inserting ‘‘, plus’’, and by add- section 45K has been allowed. ‘‘(v) Designs utilizing semi-conditioned ing at the end the following new paragraph: ‘‘(2) STANDARD 90.1–2001.—The term ‘Stand- spaces which maintain adequate comfort ‘‘(21) the new energy efficient home credit ard 90.1–2001’ means Standard 90.1–2001 of the conditions without air conditioning or with- determined under section 45K(a).’’. American Society of Heating, Refrigerating, out heating. (c) BASIS ADJUSTMENT.—Subsection (a) of and Air Conditioning Engineers and the Illu- ‘‘(vi) Improved fan system efficiency, in- section 1016 is amended by striking ‘‘and’’ at minating Engineering Society of North cluding reductions in static pressure. the end of paragraph (33), by striking the pe- America (as in effect on April 2, 2003). ‘‘(vii) Advanced unloading mechanisms for riod at the end of paragraph (34) and insert- ‘‘(d) SPECIAL RULES.— mechanical cooling, such as multiple or vari- ing ‘‘, and’’, and by adding at the end the fol- ‘‘(1) PARTIAL ALLOWANCE.— able speed compressors. lowing new paragraph: ‘‘(A) IN GENERAL.—Except as provided in ‘‘(viii) The calculation methods may take ‘‘(35) to the extent provided in section subsection (f), if— into account the extent of commissioning in 45K(e), in the case of amounts with respect ‘‘(i) the requirement of subsection (c)(1)(C) the building, and allow the taxpayer to take to which a credit has been allowed under sec- is not met, but into account measured performance which tion 45K.’’. ‘‘(ii) there is a certification in accordance exceeds typical performance. (d) DEDUCTION FOR CERTAIN UNUSED BUSI- with paragraph (6) that any system referred ‘‘(ix) On-site generation of electricity, in- NESS CREDITS.—Section 196(c) (defining to in subsection (c)(1)(B) satisfies the en- cluding combined heat and power systems, qualified business credits) is amended by ergy-savings targets established by the Sec- fuel cells, and renewable energy generation striking ‘‘and’’ at the end of paragraph (11), retary under subparagraph (B) with respect such as solar energy. by striking the period at the end of para- to such system, ‘‘(x) Wiring with lower energy losses than graph (12) and inserting ‘‘, and’’, and by add- then the requirement of subsection (c)(1)(C) wiring satisfying Standard 90.1–2001 require- ing after paragraph (12) the following new shall be treated as met with respect to such ments for building power distribution sys- paragraph: system, and the deduction under subsection tems. ‘‘(13) the new energy efficient home credit (a) shall be allowed with respect to energy ‘‘(3) COMPUTER SOFTWARE.— determined under section 45K(a).’’. efficient commercial building property in- ‘‘(A) IN GENERAL.—Any calculation under (e) CLERICAL AMENDMENT.—The table of stalled as part of such system and as part of paragraph (2) shall be prepared by qualified sections for subpart D of part IV of sub- a plan to meet such targets, except that sub- computer software. chapter A of chapter 1 is amended by adding section (b) shall be applied to such property ‘‘(B) QUALIFIED COMPUTER SOFTWARE.—For at the end the following new item: by substituting ‘$.75’ for ‘$2.25’. purposes of this paragraph, the term ‘quali- ‘‘Sec. 45K. New energy efficient home cred- ‘‘(B) REGULATIONS.—The Secretary, after fied computer software’ means software— it.’’. consultation with the Secretary of Energy, ‘‘(i) for which the software designer has (f) EFFECTIVE DATE.—The amendments shall establish a target for each system de- certified that the software meets all proce- made by this section shall apply to taxable scribed in subsection (c)(1)(B) which, if such dures and detailed methods for calculating years ending after the date of the enactment targets were met for all such systems, the energy and power consumption and costs as of this Act. building would meet the requirements of required by the Secretary, SEC. 1319. ENERGY EFFICIENT COMMERCIAL subsection (c)(1)(C). ‘‘(ii) which provides such forms as required BUILDINGS DEDUCTION. ‘‘(2) METHODS OF CALCULATION.—The Sec- to be filed by the Secretary in connection (a) IN GENERAL.—Part VI of subchapter B retary, after consultation with the Secretary with energy efficiency of property and the of chapter 1 (relating to itemized deductions of Energy, shall promulgate regulations deduction allowed under this section, and

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00206 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.102 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2359 ‘‘(iii) which provides a notice form which hotel and motel guest rooms, store rooms, credit), as amended by this title, is amended documents the energy efficiency features of restrooms, and public lobbies, or by adding at the end the following new sub- the building and its projected annual energy ‘‘(ii) which does not meet the minimum re- section: costs. quirements for calculated lighting levels as ‘‘(c) COMBINED HEAT AND POWER SYSTEM ‘‘(4) ALLOCATION OF DEDUCTION FOR PUBLIC set forth in the Illuminating Engineering So- PROPERTY.—For purposes of subsection PROPERTY.—In the case of energy efficient ciety of North America Lighting Handbook, (a)(3)(A)(iv)— commercial building property installed on or Performance and Application, Ninth Edition, ‘‘(1) COMBINED HEAT AND POWER SYSTEM in public property, the Secretary shall pro- 2000. PROPERTY.—The term ‘combined heat and mulgate a regulation to allow the allocation ‘‘(g) COORDINATION WITH OTHER TAX BENE- power system property’ means property com- of the deduction to the person primarily re- FITS.— prising a system— sponsible for designing the property in lieu ‘‘(1) NO DOUBLE BENEFIT.—No deduction ‘‘(A) which uses the same energy source for of the public entity which is the owner of shall be allowed under subsection (a) with re- the simultaneous or sequential generation of such property. Such person shall be treated spect to any building for which a credit electrical power, mechanical shaft power, or as the taxpayer for purposes of this section. under section 45K has been allowed. both, in combination with the generation of ‘‘(5) NOTICE TO OWNER.—Each certification ‘‘(2) SPECIAL RULE WITH RESPECT TO BUILD- steam or other forms of useful thermal en- required under this section shall include an INGS WITH ENERGY EFFICIENT PROPERTY.—In ergy (including heating and cooling applica- explanation to the building owner regarding any case in which a deduction under section tions), the energy efficiency features of the building 200 or a credit under section 25C has been al- ‘‘(B) which has an electrical capacity of and its projected annual energy costs as pro- lowed with respect to property in connection not more than 15 megawatts or a mechanical vided in the notice under paragraph with a building, the annual energy and power energy capacity of not more than 2,000 horse- (3)(B)(iii). costs of the reference building referred to in power or an equivalent combination of elec- trical and mechanical energy capacities, ‘‘(6) CERTIFICATION.— subsection (c)(1)(C) shall be determined as- ‘‘(C) which produces— ‘‘(A) IN GENERAL.—The Secretary shall pre- suming such reference building contains the scribe the manner and method for the mak- property for which such deduction or credit ‘‘(i) at least 20 percent of its total useful ing of certifications under this section. has been allowed. energy in the form of thermal energy which is not used to produce electrical or mechan- ‘‘(B) PROCEDURES.—The Secretary shall in- ‘‘(h) REGULATIONS.—The Secretary shall ical power (or combination thereof), and clude as part of the certification process pro- promulgate such regulations as necessary— ‘‘(ii) at least 20 percent of its total useful cedures for inspection and testing by quali- ‘‘(1) to take into account new technologies energy in the form of electrical or mechan- fied individuals described in subparagraph regarding energy efficiency and renewable ical power (or combination thereof), (C) to ensure compliance of buildings with energy for purposes of determining energy ‘‘(D) the energy efficiency percentage of energy-savings plans and targets. Such pro- efficiency and savings under this section, which exceeds 60 percent, and cedures shall be comparable, given the dif- and ‘‘(E) which is placed in service before Janu- ference between commercial and residential ‘‘(2) to provide for a recapture of the deduc- ary 1, 2009. buildings, to the requirements in the Mort- tion allowed under this section if the plan ‘‘(2) SPECIAL RULES.— gage Industry National Accreditation Proce- described in subsection (c)(1)(C) or (d)(1)(A) is not fully implemented. ‘‘(A) ENERGY EFFICIENCY PERCENTAGE.—For dures for Home Energy Rating Systems. purposes of this subsection, the energy effi- ‘‘(C) QUALIFIED INDIVIDUALS.—Individuals ‘‘(i) TERMINATION.—This section shall not apply with respect to property placed in ciency percentage of a system is the frac- qualified to determine compliance shall be tion— only those individuals who are recognized by service after December 31, 2010.’’. (b) CONFORMING AMENDMENTS.— ‘‘(i) the numerator of which is the total an organization certified by the Secretary (1) Section 1016(a) is amended by striking useful electrical, thermal, and mechanical for such purposes. ‘‘and’’ at the end of paragraph (34), by strik- power produced by the system at normal op- ‘‘(e) BASIS REDUCTION.—For purposes of ing the period at the end of paragraph (35) erating rates, and expected to be consumed this subtitle, if a deduction is allowed under and inserting ‘‘, and’’, and by adding at the in its normal application, and this section with respect to any energy effi- end the following new paragraph: ‘‘(ii) the denominator of which is the lower cient commercial building property, the ‘‘(36) to the extent provided in section heating value of the fuel sources for the sys- basis of such property shall be reduced by 179C(e).’’. tem. the amount of the deduction so allowed. (2) Section 1245(a) is amended by inserting ‘‘(B) DETERMINATIONS MADE ON BTU BASIS.— ‘‘(f) INTERIM RULES FOR LIGHTING SYS- ‘‘179C,’’ after ‘‘179B,’’ both places it appears The energy efficiency percentage and the TEMS.—Until such time as the Secretary in paragraphs (2)(C) and (3)(C). percentages under paragraph (1)(C) shall be issues final regulations under subsection (3) Section 1250(b)(3) is amended by insert- determined on a Btu basis. (d)(1)(B) with respect to property which is ing before the period at the end of the first ‘‘(C) INPUT AND OUTPUT PROPERTY NOT IN- part of a lighting system— sentence ‘‘or by section 179C’’. CLUDED.—The term ‘combined heat and ‘‘(1) IN GENERAL.—The lighting system tar- (4) Section 263(a)(1) is amended by striking power system property’ does not include get under subsection (d)(1)(A)(ii) shall be a ‘‘or’’ at the end of subparagraph (H), by property used to transport the energy source reduction in lighting power density of 25 per- striking the period at the end of subpara- to the facility or to distribute energy pro- cent (50 percent in the case of a warehouse) graph (I) and inserting ‘‘, or’’, and by insert- duced by the facility. of the minimum requirements in Table 9.3.1.1 ing after subparagraph (I) the following new ‘‘(D) PUBLIC UTILITY PROPERTY.— or Table 9.3.1.2 (not including additional in- subparagraph: ‘‘(i) ACCOUNTING RULE FOR PUBLIC UTILITY terior lighting power allowances) of Stand- ‘‘(J) expenditures for which a deduction is PROPERTY.—If the combined heat and power ard 90.1–2001. allowed under section 179C.’’. system property is public utility property ‘‘(2) REDUCTION IN DEDUCTION IF REDUCTION (5) Section 312(k)(3)(B) is amended by (as defined in section 168(i)(10)), the taxpayer LESS THAN 40 PERCENT.— striking ‘‘section 179, 179A, or 179B’’ each may only claim the credit under subsection ‘‘(A) IN GENERAL.—If, with respect to the place it appears in the heading and text and (a) if, with respect to such property, the tax- lighting system of any building other than a inserting ‘‘section 179, 179A, 179B, or 179C’’. payer uses a normalization method of ac- warehouse, the reduction in lighting power (c) CLERICAL AMENDMENT.—The table of counting. density of the lighting system is not at least sections for part VI of subchapter B of chap- ‘‘(ii) CERTAIN EXCEPTION NOT TO APPLY.— 40 percent, only the applicable percentage of ter 1 is amended by inserting after section The matter in subsection (a)(3) which follows the amount of deduction otherwise allowable 179B the following new item: subparagraph (D) thereof shall not apply to under this section with respect to such prop- ‘‘Sec. 179C. Energy efficient commercial combined heat and power system property. erty shall be allowed. buildings deduction.’’. ‘‘(E) NONAPPLICATION OF CERTAIN RULES.— ‘‘(B) APPLICABLE PERCENTAGE.—For pur- For purposes of determining if the term (d) EFFECTIVE DATE.—The amendments poses of subparagraph (A), the applicable made by this section shall apply to property ‘combined heat and power system property’ percentage is the number of percentage placed in service after the date of the enact- includes technologies which generate elec- points (not greater than 100) equal to the ment of this Act in taxable years ending tricity or mechanical power using back-pres- sum of— after such date. sure steam turbines in place of existing pres- ‘‘(i) 50, and SEC. 1320. ENERGY CREDIT FOR COMBINED HEAT sure-reducing valves or which make use of ‘‘(ii) the amount which bears the same AND POWER SYSTEM PROPERTY. waste heat from industrial processes such as ratio to 50 as the excess of the reduction of (a) IN GENERAL.—Section 48(a)(3)(A) (defin- by using organic rankine, stirling, or kalina lighting power density of the lighting system ing energy property), as amended by this heat engine systems, paragraph (1) shall be over 25 percentage points bears to 15. title, is amended by striking ‘‘or’’ at the end applied without regard to subparagraphs (A), ‘‘(C) EXCEPTIONS.—This subsection shall of clause (ii), by inserting ‘‘or’’ at the end of (C), and (D) thereof. not apply to any system— clause (iii), and by adding at the end the fol- ‘‘(3) SYSTEMS USING BAGASSE.—If a system ‘‘(i) the controls and circuiting of which do lowing: is designed to use bagasse for at least 90 per- not comply fully with the mandatory and ‘‘(iv) combined heat and power system cent of the energy source— prescriptive requirements of Standard 90.1– property,’’. ‘‘(A) paragraph (1)(D) shall not apply, but 2001 and which do not include provision for (b) COMBINED HEAT AND POWER SYSTEM ‘‘(B) the amount of credit determined bilevel switching in all occupancies except PROPERTY.—Section 48 (relating to energy under subsection (a) with respect to such

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00207 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.102 H20PT1 H2360 CONGRESSIONAL RECORD — HOUSE April 20, 2005 system shall not exceed the amount which ceived in the Treasury by reason of section pendent assessment of innovative financing bears the same ratio to such amount of cred- 472(h) (relating to prohibition on use of last- techniques to facilitate construction of new it (determined without regard to this para- in, first-out inventory accounting for oil and renewable energy and energy efficiency fa- graph) as the energy efficiency percentage of gas). cilities that might not otherwise be built in such system bears to 60 percent. ‘‘(2) LIMITATION.—The amount appropriated a competitive market. (c) EFFECTIVE DATE.—The amendments to the Trust Fund under paragraph (1) for (b) CONDUCT OF THE ASSESSMENT.—The Sec- made by this subsection shall apply to peri- any fiscal year shall not exceed $5,000,000,000. retary of Energy shall retain an independent ods after December 31, 2005, in taxable years ‘‘(c) EXPENDITURES.—Amounts in the contractor with proven expertise in financ- ending after such date, under rules similar to Emerging Technologies Trust Fund shall be ing large capital projects or in financial the rules of section 48(m) of the Internal available to the Secretary of Energy to carry services consulting to conduct the assess- Revenue Code of 1986 (as in effect on the day out a program to research and develop ment under this section. before the date of the enactment of the Rev- emerging technologies for more efficient and (c) CONTENT OF THE ASSESSMENT.—The as- enue Reconciliation Act of 1990). renewable energy sources.’’. sessment shall include a comprehensive ex- SEC. 1320A. EXTENSION THROUGH 2010 FOR (b) CLERICAL AMENDMENT.—The table of amination of all available techniques to safe- PLACING QUALIFIED FACILITIES IN sections for such subchapter is amended by guard private investors against risks (includ- SERVICE FOR PRODUCING RENEW- adding at the end thereof the following new ing both market-based and government-im- ABLE ELECTRIC ENERGY. item: posed risks) that are beyond the control of (a) IN GENERAL.—Subsection (d) of section ‘‘Sec. 9511. Emerging Technologies Trust the investors. Such techniques may include 45 is amended by striking ‘‘January 1, 2006’’ Fund.’’. Federal loan guarantees, Federal price guar- each place it appears and inserting ‘‘January In title XIV, add at the end the following antees, special tax considerations, and direct 1, 2011’’. new sections: Federal investment. (b) EFFECTIVE DATE.—The amendments (d) REPORT.—The Secretary of Energy shall made by this section shall apply to property SEC. 1452. SMALL BUSINESS COMMERCIALIZA- submit the results of the independent assess- TION ASSISTANCE. originally placed in service on or after Janu- ment to the Congress not later than 9 (a) AUTHORITY.—The Secretary of Energy ary 1, 2006. months after the date of enactment of this shall provide assistance, to small businesses At the end of title XIII, insert after sub- section. with less than 100 employees and startup title C the following new subtitle: companies, for the commercial application of The Acting CHAIRMAN. Pursuant to Subtitle D—Method of Accounting for Oil, renewable energy and energy efficiency tech- House Resolution 219, the gentleman Gas, and Primary Products Thereof nologies developed by or with support from from New York (Mr. BISHOP) and a SEC. 1331. PROHIBITION ON USING LAST IN, the Department of Energy. Such assistance Member opposed each will control 15 FIRST-OUT ACCOUNTING FOR OIL, shall be provided through a competitive re- minutes. GAS, AND PRIMARY PRODUCTS view process. The Chair recognizes the gentleman THEREOF. (b) APPLICATIONS.—The Secretary of En- from New York (Mr. BISHOP). (a) IN GENERAL.—Section 472 (relating to ergy shall establish requirements for appli- Mr. BISHOP of New York. Mr. Chair- last-in, first-out inventories) is amended by cations for assistance under this section. adding at the end the following new sub- Such applications shall contain a commer- man, I yield 3 minutes to the gen- section: cial application plan, including a description tleman from Massachusetts (Mr. MAR- ‘‘(h) OIL AND GAS.—Notwithstanding any of the financial, business, and technical sup- KEY), the cosponsor of this amendment. other provision of this section— port (including support from universities and Mr. MARKEY. Mr. Chairman, I thank ‘‘(1) oil, gas, and any primary product of national laboratories) the applicant antici- the gentleman from New York (Mr. oil or gas, shall be inventoried separately, pates in its commercial application effort. BISHOP) for yielding me this time. I and (c) SELECTION.—The Secretary of Energy thank the gentleman from New York ‘‘(2) a taxpayer may not use the method shall select applicants to receive assistance for his leadership on this issue, and I provided in subsection (b) in inventorying under this section on the basis of which ap- oil, gas, and any primary product of oil or plications are the most likely to result in am proud to follow his leadership on gas.’’. commercial application of renewable energy this amendment. (b) EFFECTIVE DATE AND SPECIAL RULE.— and energy efficiency technologies. Last Thursday, President Bush ad- (1) IN GENERAL.—The amendment made by (d) LIMIT ON FEDERAL FUNDING.—The Sec- dressed the American Society of News- subsection (a) shall apply to taxable years retary of Energy shall provide under this paper Editors. Here is what he said: ‘‘I beginning after the date of the enactment of section no more than 50 percent of the costs will tell you, with $55 a barrel oil, we this Act. of the project funded. do not need incentives to oil and gas (e) AUTHORIZATION OF APPROPRIATIONS.— (2) CHANGE IN METHOD OF ACCOUNTING.—In companies to explore. There are plenty the case of any taxpayer required by the There are authorized to be appropriated to amendment made by this section to change the Secretary of Energy for carrying out this of incentives. What we need is to put a its method of accounting for its first taxable section $200,000,000 for each of the fiscal strategy in place that will help this year beginning after the date of the enact- years 2006 through 2010, and such sums as country over time become less depend- ment of this Act— may be necessary for each of the fiscal years ent. It is really important,’’ said the (A) such change shall be treated as initi- 2011 through 2026. President. ‘‘It is an important part of ated by the taxpayer, SEC. 1453. SENSE OF THE CONGRESS. our economic security and it is an im- (B) such change shall be treated as made It is the sense of the Congress that the portant part of our national security.’’ with the consent of the Secretary of the President should direct the Federal Trade Those were the President’s words last Treasury, and Commission and Attorney General to exer- week. But the President then went on (C) the net amount of the adjustments re- cise vigorous oversight over the oil markets quired to be taken into account by the tax- to protect the American people from price to call upon Congress to pass the Re- payer under section 481 of the Internal Rev- gouging and unfair practices at the gasoline publican energy bill, a bill replete with enue Code of 1986 shall be taken into account pump. a rich assortment of tax and deregula- ratably over a period (not greater than 10 SEC. 1454. TRANSPARENCY. tory incentives for the oil and gas com- taxable years) beginning with such first tax- The Federal Trade Commission, in con- panies to explore, even though they are able year. sultation with the Secretary of Energy, shall essentially already drowning in wind- SEC. 1332. EMERGING TECHNOLOGIES TRUST issue regulations requiring full disclosure by fall profits. The price of oil has doubled FUND. refiners and distributors of their wholesale essentially from $25 a barrel to more (a) IN GENERAL.—Subchapter A of chapter motor fuel pricing policies, with a separate than $50 a barrel. That is all extra cash 98 (relating to trust fund code) is amended by listing of each component contributing to adding at the end the following new section: prices, including the cost of crude oil (with in the oil companies’ pockets. So the President, I think, has to rely ‘‘SEC. 9511. EMERGING TECHNOLOGIES TRUST exploration, extraction, and transportation FUND. costs shown separately if the refiner or dis- upon his own Energy Department, be- ‘‘(a) CREATION OF TRUST FUND.—There is tributor is also the producer of the crude cause his own Energy Department has established in the Treasury of the United oil), refining, marketing, transportation, acknowledged that this bill that we are States a trust fund to be known as the equipment, overhead, and profit, along with debating would result in only neg- ‘Emerging Technologies Trust Fund’, con- ption of any rebates, incentives, and market ligible changes to overall demand, pro- sisting of such amounts as may be appro- enhancement allowances. duction, and imports, a bill that the priated or credited to such Trust Fund as In title XVI, add at the end the following Energy Department acknowledges will provided in this section or section 9602(b). new section: actually increase gasoline prices at the ‘‘(b) TRANSFERS TO TRUST FUND.— SEC. 1614. STUDY OF FINANCING FOR PROTO- ‘‘(1) IN GENERAL.—There are hereby appro- TYPE TECHNOLOGIES. pump between 3.5 and 8 cents a gallon. priated to the Emerging Technologies Trust (a) INDEPENDENT ASSESSMENT.—The Sec- The bill will increase the price of gaso- Fund amounts equivalent to the taxes re- retary of Energy shall commission an inde- line.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00208 Fmt 7634 Sfmt 0634 E:\CR\FM\A20AP7.102 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2361 b 1915 On the issue of gas prices, our amendment also give FERC stronger legal authorities to So even though the President says says, when oil prices are at record highs, let’s police electricity and natural gas markets for the oil companies do not need incen- stop filling the Strategic Petroleum Reserve. fraud. tives to drill when prices are so high, Let’s return to the principle of considering the The Bishop-Markey Democratic enbloc in this bill we are providing more than impact of oil and gas prices and the economy amendments make some modest but useful $3 billion in tax incentives to Big Oil. when we are making decisions about whether steps toward making this energy bill a more a This is just at the point at which all of and when to fill the Reserve. Are you at least balanced bill and a more consumer friendly their profits are doubling. We are giv- willing to do that? bill. I urge my colleagues to vote for the ing them tax breaks. It is absolutely At the same time, our amendment ex- amendment. Mr. BARTON of Texas. Mr. Chair- unbelievable. presses the Sense of Congress that the Fed- So what the gentleman from New eral Trade Commission and the Justice De- man, I claim the time in opposition. The Acting Chairman (Mr. SIMPSON). York (Mr. BISHOP) has done is put out partment should exercise vigorous oversight of The Chair recognizes the gentleman a series of provisions. If Members do our Nation’s oil and gas markets to guard from Texas (Mr. BARTON) for 15 min- not want to support increasing fuel against price gouging or market manipulation. utes. economy standards for SUVs and auto- It expresses the Sense of Congress that the Mr. BARTON of Texas. Mr. Chair- mobiles so we can take on OPEC, what President should put pressure on OPEC and man, I yield myself such time as I may we have is another series of alter- non-OPEC oil producers to increase oil pro- consume. natives that can be engaged in which duction to help bring down prices. It gives the On the Johnson amendment imme- are much less Draconian, but will at FTC the power to require full disclosure by re- diately prior, I was in mild opposition. least give us some improvement in the finers and distributors of fuel pricing policies, On this amendment, I want to be re- way this country interrelates with gas, costs, and profits, so consumers will be better corded in strong opposition. oil, and other energy sources. able to determine whether the oil companies Here is the amendment. It is 124 If Members feel that the Boehlert- are profiteering from the current volatility in oil pages. It may be great. I do not believe Markey amendment is too radical, this markets. Are you at least willing to do that? it is, but I have to stipulate it is pos- is your cup of tea. I thank the gen- Our amendment also would extend the re- sible. There has been no hearing on tleman from New York (Mr. BISHOP) for newable energy production tax credit for 5 this, no markup on this. Most of the his help on this amendment. years, so that companies know that there will amendments before the body today, Mr. Chairman, I rise in support of the be incentives out there to make the invest- there may be a paragraph, a page, most amendment offered by the gentleman from ment in building new solar, wind, geothermal of them are amendments that were at New York (Mr. BISHOP) and I am pleased to and biomass technologies, so we can become least debated in one of the committees join as a cosponsor of this amendment. less dependent on coal and natural gas to of jurisdiction. This is a 124-page Last Thursday, the President addressed the generate electricity. amendment which, I guess, Members American Society of Newspaper Editors. He Our amendment strikes the cap on Energy could say is a substitute for the entire said: Savings Performance Contracts, an important bill. There are 50 pages of efficient I will tell you with $55 oil we don’t need in- tool used by the Federal government to re- standards in this amendment. centives to oil and gas companies to explore. duce the amount of energy consumed in Fed- Then there is the Dingell electricity There are plenty of incentives. What we need eral buildings across the country. substitute, which we have already had is to put a strategy in place that will help a debate on earlier today, and then at this country over time become less depend- Our amendment would put in place three ent. It’s really important. It’s an important additional appliance efficiency standards— the end there are another 30 pages of part of our economic security, and it’s an commercial packaged air conditioners and tax credits. To top it off, we have some important part of our national security. heat pumps, residential dehumidifiers, and sort of a scheme to fix the price of oil. But the President then went on to call upon commercial spray valves used in restaurants. What is not in this amendment is anything that would increase produc- Congress to pass the Republican energy bill— In addition, under the amendment, efficiency tion, anything that addresses clean a bill replete with a rich assortment of tax and standards for residential and commercial fur- coal technology, I believe, or hydrogen deregulatory ‘‘incentives’’ for the oil and gas naces and boilers, which have been lan- research or any of those things. Again, companies to explore, a bill that the Presi- guishing over at the Energy Department for I will stipulate this is probably a well- dent’s own Energy Department has acknowl- more than 10 years, would be speeded up. We would strike the Home Depot ceiling fan intentioned amendment. It is certainly edged would result in only ‘‘negligible’’ lengthily drafted, but I cannot con- language that immediately preempts state ceil- changes to overall demand, production and ceive at this stage of the game after all ing fan standards before there’s even a Fed- imports, a bill that the Energy Department ac- of the hearings and the markup and the eral standard in place. knowledges will actually increase gasoline amendments we have already had in We would provide a new 10 percent invest- prices at the pump by between 3.5 and 8 this Congress and the debate that went ment tax credit for high-efficient combined cents a gallon. So, even though the President on in the prior Congress, in the con- heat and power systems. says the oil companies don’t need ‘‘incentives’’ ference report that this House voted on We would provide a tax deduction for ex- to drill when prices are so high, we are pro- two times, that the House would accept penses needed to reduce energy use of new viding more than $3 billion in tax incentives to this amendment. Big Oil. We are giving them ‘‘royalty relief’’ so and existing commercial buildings by 50 per- With all due respect to the authors, I they don’t have to pay the public a fair price cent below model commercial codes. would urge a strong ‘‘no’’ vote on this for drilling on public lands. We would provide a tax credit for new on a bipartisan basis because I do not That is what H.R. 6 offers up as a solution homes that reduce energy costs by 20–50 think this amendment is right for in- to high oil and gasoline prices. This bill says percent, and we’d provide a tax deduction for clusion or substitution for the under- let’s give more tax breaks to oil and gas com- expenses needed to cut energy use at new lying bill. panies that even a President who was a and existing commercial buildings. Mr. Chairman, I reserve the balance former Texas oil man has said are not need- We would provide for the creation of an of my time. ed. This bill says let’s enact proposals that Emerging Technology Trust Fund to help de- Mr. BISHOP of New York. Mr. Chair- would actullay increase the price that con- velop emerging technologies for more efficient man, I yield myself 3 minutes. sumers pay to fill up their gas tanks. and renewable energy sources, as well as a I am pleased to offer the Bishop-Mar- That is no solution. Small Business Commercialization Program, key-McDermott en bloc amendment The amendment being offered by the gen- to provide assistance for small businesses and this evening along with my colleagues. tleman from New York and myself takes a dif- start-up companies trying to introduce alter- We have an opportunity within our ferent approach. native energy and efficiency technologies into reach to make a real advancement in While I continue to believe that the real so- the marketplace. energy policy, but we are about to do lution to the current high gas prices is in- Finally, our amendment includes the Dingell the unimaginable: pass an energy bill creased efficiency, the House has already de- Democratic alternative amendment on elec- that will do nothing to lower gas bated that issue. This amendment says, if you tricity, which would preserve the bill’s manda- prices. aren’t willing to take the step of mandating tory reliability provisions, but delete its pro- Let me say that again because I higher fuel efficiency standards, are you at posed repeal of the Public Utility Holding think it is important to our constitu- least will to take some more modest steps? Company Act. The Dingell language would ents who are paying $2.25 or more for a

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00209 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.161 H20PT1 H2362 CONGRESSIONAL RECORD — HOUSE April 20, 2005 gallon of gas, this energy bill will not regulated businesses. PUHCA should budget. Tonight is a defining moment. lower gas prices. In fact, according to not be repealed; it should be applied Republicans want Americans firmly the Department of Energy, this bill appropriately and enforced. rooted in the past, relying on fuel may actually increase future gas Mr. Chairman, H.R. 6 is anti-tax- sources that make us vulnerable to too prices. payer, anti-consumer, and anti-envi- many foreign countries. Fortunately, our amendment will ronment. And I will say it again, it Democrats envision America firmly help consumers see immediate relief at does nothing to lower gas prices. We and finally looking to the future, em- the gas pump. The Bishop-Markey- can do better. The Bishop-Markey- bracing a path to independence and McDermott amendment calls on the McDermott en bloc amendment offers freedom. Vote for America. Vote for President to immediately suspend de- real incentives for energy efficiency the Democratic alternative energy bill liveries to the Strategy Petroleum Re- and real relief at the pump. that takes this country where it be- serve until oil prices fall below $40 per Mr. Chairman, I reserve the balance longs, into the 21st century. Vote for barrel. When we have done this in the of my time. the Bishop-Markey-McDermott amend- past, the price of oil has dropped any- Mr. BARTON of Texas. Mr. Chair- ment. where from $6 to $11 per barrel. man, I reserve the balance of my time. The United States should be the glob- Mr. BISHOP of New York. Mr. Chair- Mr. BARTON of Texas. Mr. Chair- al leader in the development of new man, I yield 3 minutes to the gen- man, I yield 4 minutes to the gen- and innovative technologies. This tleman from Washington (Mr. tleman from Louisiana (Mr. MCCRERY), amendment will encourage the growth MCDERMOTT). a member of the Committee on Ways of an energy-efficiency marketplace (Mr. MCDERMOTT asked and was and Means that has jurisdiction on tax that fosters and incubates new start- given permission to revise and extend issues. ups. This will not only lead to exciting his remarks.) Mr. MCCRERY. Mr. Chairman, the new advances, it will help create good- Mr. MCDERMOTT. Mr. Chairman, the previous speaker made some good paying jobs for thousands of Ameri- Republican energy bill is a license to points. He talked about the need for cans. steal. It sanctions Big Oil’s approach to our country to discover new alter- Our amendment will create a $5 bil- America’s energy crisis: do nothing ex- native sources of energy, and I think lion emerging-technology trust fund, cept count the monstrous profits. Prof- the gentleman is right. The underlying funding the technologies of the future its may be up 400 percent, but this bill bill under consideration has some in- rather than the further counter- allows Big Oil to earn even more centives for developing those new al- productive subsidies to the oil and gas money to add to their current $55 bil- ternative sources of energy. Should we industries provided for in the under- lion cash on hand. They will earn it at do more? Perhaps. I think perhaps lying bill. the pump, and they will earn it at the when we get the final bill out of con- The Bishop-Markey-McDermott Treasury Department. ference with the Senate, there may be amendment would also offer grants to An accounting gimmick allows Big more in the bill. But to rail against the States that meet new standards for ef- Oil to escape paying anything close to oil and gas industry, as the gentleman ficiency in new building development. its fair share of taxes. That is the Re- did, and the provisions in the under- Under our amendment, the renewable publican way. The Democrats propose, lying bill that provide tax incentives energy production tax credit will be ex- and I proposed in the Committee on for exploration and development of our tended for 5 years. We will provide tax Ways and Means, something radically oil and gas reserves in this country, to credits for new homes that reduce en- different in our alternative energy bill, me rings empty because the substitute ergy use, as well as tax credits for new actually paying for it. Imagine that, a or the amendment that is before us and existing commercial buildings to bill we paid for on the floor of this that the gentleman spoke in favor of reduce energy use; and we would also House. does not strike any of those provisions offer an investment tax credit for the We want to eliminate the provision in the underlying bill. development of higher efficiency heat- called LIFO. It means last in first out. All this amendment does is add new ing and cooling systems. You buy a barrel of oil at $20, and you tax credits to the underlying bill. So In short, we offer tax cuts and credits buy a barrel 6 months later at $50. all of the rhetoric that we heard about that America will embrace and at the When you put it out, you use the $50 the underlying bill is just talk because same time create a cleaner and barrel. You cut down the profits. Of this amendment does nothing to affect healthier environment for our children. course, that is what they do. That is those provisions the gentleman was We will allow consumers to make more the American way of saying to Big Oil: speaking against. informed decisions about energy-effi- pay now less, and then pay even less cient appliances for their homes or later. What this amendment does do is basi- businesses by adding greater meaning Democrats are proposing something cally double the cost of this bill, at to the Energy Star label by mandating else, investing in the 21st century en- least the tax provisions in this bill. We that only the top 25 percent of products ergy sources. We provide a tax credit have not had time, and the chairman of will carry that label. Currently, ac- for new homes that reduce energy by at the Committee on Energy and Com- cording to the Alliance to Save Energy, least 30 percent. That benefits Ameri- merce spoke about the number of pages approximately two-thirds of products cans and encourages a paradigm shift in this amendment, we have not had are eligible to wear the Energy Star in thinking to produce energy by sav- time, frankly, to analyze it from a label, rendering the distinction almost ing it. We will establish an emergency budgetary aspect to see if it violates meaningless. technology trust fund. We want to har- the House budget we have already Mr. Chairman, let us give Americans ness the power of our best minds to passed. It very well could. But it takes in the Northeast and on the West Coast chart a course of energy independence. the cost of tax provisions in this bill something to cheer about. America We want to extend the renewable en- from about $8 billion over 10 years to needs electricity reliability and protec- ergy tax credit. America needs the about $17 billion over 10 years. tion from fraud and blackouts. H.R. 6 power of wind. My State is full of wind Now, the accounting gimmick, as the would repeal the Public Utility Holding farms provided by Mother Nature, and gentleman from Washington put it, is Company Act. Our act would strike we can harness it. Democrats see called LIFO, last in first out. This is that provision. PUHCA is the only line America as strong and free of an addic- not an accounting principle used just of defense for millions of taxpayers tion to Big Oil. We are addicted to oil; by the oil and gas industry. It is used protecting them from skyrocketing en- and as long as we remain addicted to by every sector of our economy. It is in ergy costs and greedy corporations. We oil, we are not going to get any better common usage, and there is a reason. should not allow utility holding com- in this whole area. The reason is if we insisted on indus- panies to use the profits obtained from We see in America where people are try, of whatever kind, accounting for their regulated business activities not faced with choosing gasoline over first in first out, it would lead to dis- squeezed from their captive rate-payers food. At $3 a gallon for gasoline, you tortions in the market, and it would and pour it down the sinkholes of un- are hitting pretty hard on the food lead to business decisions based on tax

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00210 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.162 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2363 considerations instead of market con- in the Constitution in the interstate the States can set a standard, but once siderations. Last in first out is some- commerce clause. the standards in the bill kick in on thing commonly used throughout in- The Great Lakes already face a num- January 1, 2010, the Federal standard dustry, not just the oil and gas indus- ber of threats, invasive species and preempts. That is a policy debate; we try. They cannot game it. There are contamination that leads to beach clo- can argue that back and forth. regulations in place to keep them from sures. Given these threats, it makes no The next section, I do not under- shifting their inventory around to take sense to further endanger the Great stand, subparagraph 3, line 16: advantage of the accounting rule. So Lakes by opening them up to oil and ‘‘If the California Energy Commis- this is not something, some gimmick gas drilling. sion adopts, not later than March 31, for the oil and gas industry. It is a very The bottomlands of the Great Lakes 2005, a regulation concerning the en- sound accounting principle used will not provide enough oil or natural ergy efficiency or energy effective throughout industry in this country. gas to make even a small dent in the after, the standards established under So I would urge this House not to lis- amount of America’s energy needs that section 342(a)(9) take effect on January ten to the words of the gentleman, but are supplied by imported oil and nat- 1, 2010.’’ look at the action embodied in the ural gas. And an oil spill on the shore- What does that mean? While the gen- amendment. This amendment does line can contaminate our groundwater. tleman is trying to get me an answer, nothing to the underlying tax provi- Unfortunately, pollution knows no this is the kind of thing that if we had sions in the bill. It doubles the cost of boundaries. When one or more of the this in regular order in a markup, the bill, and it would impose upon the Great Lakes States does not have a ban there would be counsel at the desk and oil and gas industry, just one indus- and a blowout or a spill occurs, those members of the committee of jurisdic- trial sector in this country, a retro- States, all of the States, may be forced tion would ask the counsel to explain active tax increase because under his to pay the public health and environ- it; and if it is a drafting error, then accounting change, those companies mental price. that could be corrected. If it is not a would have to go back and recapture The message is clear. Even an energy drafting error, then at least the mem- what they would have paid in taxes and crisis is not enough to justify threat- bers know. I am assuming that is a pay them prospectively over the next ening our Great Lakes, the world’s drafting error, but it may not be. 10 years. largest body of fresh water, to extract Mr. BISHOP of New York. It is, in I hope we have concluded in this body what industry experts agree will be a fact, a drafting error. These efficiency that retroactive tax increases are bad small amount of oil and gas. standards were taken from the Senate policy. So for that reason alone, I I ask that my colleagues approve this bill from the 108th Congress and it is a would recommend that we reject this amendment to enact a permanent ban drafting error. The date needs to be up- amendment. on oil and gas drilling in and on the dated. Great Lakes. Mr. BARTON of Texas. Then right 1930 b Mr. BARTON of Texas. Mr. Chair- underneath that, we are talking about Mr. BISHOP of New York. Mr. Chair- man, I yield myself such time as I may administration, penalties, enforcement man, I yield 2 minutes to the gen- consume. I would ask to engage in a and preemption on efficiency standard tleman from Michigan (Mr. STUPAK). dialogue with one of the authors of the for appliances. After that paragraph I Mr. STUPAK. Mr. Chairman, I rise amendment, if they wish to do so. just read, then you go back and just today in support of the Markey-Bishop I am not being facetious about this. I out of the blue, it says, ‘‘In deter- amendment. This amendment includes want to let the gentleman from New mining whether to defer such acquisi- a provision that permanently bans oil York know right up front. tion, the Secretary shall use market- and gas drilling in and under our Great I have spent the last 10 minutes actu- based practices when deciding to ac- Lakes. ally trying to look at the amendment quire petroleum for the Strategic Pe- I offered this language as an amend- to try to get a sense of it. It appears to troleum Reserve.’’ ment before the Committee on Rules me that most of it is the Dingell elec- Again, I am going to assume that last night. However, the Committee on tricity substitute. Would the gen- this was a cut-and-paste effort and Rules Republican majority refused to tleman from New York agree with something got left out and that should allow my bipartisan amendment to be that? be in another place. Am I correct or in- considered on the floor despite strong Mr. BISHOP of New York. Mr. Chair- correct on that? bipartisan support for it in the House man, will the gentleman yield? Mr. BISHOP of New York. If the gen- and by the American people. Mr. BARTON of Texas. I yield to the tleman can just give me one second. The Great Lakes are one of our Na- gentleman from New York. Mr. Chairman, I guess what I would tion’s greatest natural resources and Mr. BISHOP of New York. Yes, I say in response is that I understand the are vital to more than 30 million Amer- would, Mr. Chairman. questions that the gentleman from icans who rely upon them for their Mr. BARTON of Texas. In the begin- Texas is raising and I understand, I drinking water. Understanding this, ning, he has some efficiency standards. guess, the consternation that he has Congress has repeatedly banned oil and He goes through and sets some specific with respect to receiving such a gas drilling in and under the Great standards on specific appliances, dish- lengthy amendment with little notice. Lakes to protect this vital resource. In washers and things like this. But on I would only say that the underlying 2001, the House voted overwhelmingly, page 21, there is something beginning bill is equally complex, equally dense, 265–157, in favor of instituting a ban. on line 16 that I just do not understand and that there are sections of the un- Last week when the Committee on and I just want to see. derlying bill that were not subjected to Energy and Commerce marked up this The gentleman from New York may hearings, as well. legislation, I offered my amendment. not understand it either, because he Mr. BARTON of Texas. I sincerely re- Unfortunately, the gentleman from may not have had much advance work spect the intent of the authors of the Michigan (Mr. ROGERS) undermined my in drafting this. amendment. I am just trying to point amendment in favor of a watered-down The heading is Administration, Pen- out that even on a cursory examina- version. That amendment is included alties, Enforcement and Preemption. It tion, there are things that were just in the bill we find before us today. says, ‘‘Section 345 of the Energy Policy kind of hastily put together. They have The Rogers amendment does nothing and Conservation Act, 42 U.S. Code not been vetted. to stop drilling in the Great Lakes. 6316, is amended by adding at the end The underlying bill has been through What the Rogers amendment does is the following.’’ It just goes down and countless hearings. The Energy and leave drilling practices up to the eight says if a State wants to set up a spe- Commerce markup took 31⁄2 days. The Great Lakes States and their legisla- cific standard, that is fine, and that base text is the conference report from tures. We could have eight different State standard will not be preempted the last Congress that was extensively policies on drilling in our lakes. Plus it until the Federal standards established reviewed both inside and out of the is Congress that regulates commerce under this bill take effect on January conference. At this stage of the game, amongst the several States, as is found 1, 2010. I understand that. He is saying to adopt this, even as well intentioned

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00211 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.163 H20PT1 H2364 CONGRESSIONAL RECORD — HOUSE April 20, 2005 as it is, would not put the Congress in Mr. BISHOP of New York. Mr. Chair- the energy challenge that we are facing the best light. So I really would hope man, I yield 2 minutes to the gen- in this century. that we would vote it down. tleman from Ohio (Mr. KUCINICH). We are already in a race against I do want to say one thing about the Mr. KUCINICH. I thank the gen- China and India for the limited oil sup- gentleman from Michigan’s amend- tleman for yielding me this time. plies that exist throughout the world. ment on Great Lakes drilling. He of- Mr. Chairman, I want to concur with This amendment provides the vision fered his amendment in committee. We the gentleman from Michigan (Mr. for us to start pivoting off from our de- had a fair debate on it. It was rejected. STUPAK) who spoke in favor of a Fed- pendence on fossil fuels generally, but I do not remember the vote. It was a eral ban on drilling for oil or gas in the the importation of oil more specifi- fairly close vote, but it was rejected. Great Lakes. I represent Cleveland, cally, by providing incentives for alter- Then we took a Rogers of Michigan Ohio, which is a city proud to be part native and renewable energy sources, amendment as a substitute that gives of the Great Lakes community. We in incentives for increased energy effi- the States the right to ban drilling if Cleveland understand that the Great ciency and conservation practices and, they wish. It is my understanding, and Lakes contain 20 percent of the Earth’s hopefully, the incentive to move to a I could be incorrect about this, that fresh water surface and supplies drink- new energy source for a new century, Michigan wishes to ban drilling in the ing water for over 40 million people. and that is fuel cell development. Great Lakes and Ohio perhaps does This is not a matter that any State I would encourage my colleagues to not. I did not learn whether New York can choose to go along with or against. adopt this amendment. wanted to or did not want to. I think This is clearly an area for Federal pol- Mr. BISHOP of New York. Mr. Chair- that Canada does allow it. icy. We need a Federal policy which man, I yield 1 minute to the gentleman But the base bill allows a State the says the people of the United States from New York (Mr. ENGEL). right to ban drilling on their portion of have a right to clean drinking water. Mr. ENGEL. Mr. Chairman, I thank jurisdiction of the Great Lakes if they Water is the oil of the 21st century the gentleman from New York for so wish. and we are here acting as though it is yielding me this time and I rise in Mr. STUPAK. Mr. Chairman, will the not the basis of life on our planet. strong support of the Bishop-Markey gentleman yield? The risks of drilling are clear. Be- Mr. BARTON of Texas. I yield to the substitute. cause the geologic formations under gentleman from Michigan. This amendment contains a number Mr. STUPAK. Mr. Chairman, if the Lake Erie are low producing, the oil of provisions designed to reduce de- chairman would remember, he did and gas industry would require over pendence on nonrenewable energy allow me to offer my amendment in 4,200 wells to access the full resource. sources. It is ridiculous that H.R. 6 committee, but before we had voted to In Canada, where they permitted drill- really offers no relief to the soaring do a permanent ban, it was undermined ing, an average of almost one spill per prices of gasoline. I think that is what by the Rogers amendment, which basi- month has been documented. Now, the our constituents really want to see. cally says the same thing that it says industry wants to use directional drill- The administration’s own Energy In- in the body of the underlying bill, ing to create new risks. Geologists formation Administration analyzed which encourages States to enact a have noted that leaks will follow the last year’s H.R. 6 and said, changes to ban. drilling shaft down into the ground- production, consumption, imports and As the gentleman from Texas knows water which flows right into Lake Erie. prices in it are negligible. It even found well, because we have several States This amendment, the Markey-Bishop that gasoline prices under the bill who deal with Lake Michigan and four amendment, is a common-sense way to would actually increase more than if a of the five Great Lakes are inter- meet our energy needs, conservation, bill was not enacted. national borders, a ban, if it is going to energy and renewables, and it is also a The Bishop-Markey amendment of- come, a permanent ban, which we seek, common-sense way to protect the great fers clear measures to lower the price would have to be Federal legislation water resource we have. of gas. We should not be filling the because of the interstate commerce Why should we even be contesting Strategic Petroleum Reserve while oil clause from which our committee gets this? Why would any State want to prices are so high. We should urge its jurisdiction. That is why we were take the responsibility of drilling in OPEC to increase oil production. We very disappointed in that, especially. the Great Lakes and thus poisoning the should instruct the FTC to protect the In fact, in 2001, we did have a morato- well for the rest of America? American people from price gouging at rium on oil and gas drilling in the This is Federal policy. We have a the gas pump. These are reasonable Great Lakes, and it passed 265–157 with right to clean water. Support this steps. This is what this substitute does. strong bipartisan support. That is why amendment. And it will provide reasonable relief we are disappointed that the Com- Mr. BISHOP of New York. Mr. Chair- from high gas prices. man, I yield 1 minute to the gentleman mittee on Rules did not make our b 1945 amendment in order. from Wisconsin (Mr. KIND). Mr. BARTON of Texas. If I could re- Mr. KIND. Mr. Chairman, I thank my I cannot support H.R. 6 as it is writ- claim my time, the gentleman from friend from New York for not only of- ten today despite my great affection Michigan is a valued member of the fering the amendment, but providing a for our chairman, who was more than committee and has several amend- very important point in this debate, fair when we had the markup in the ments that were accepted, that are in and that is, unfortunately, the under- Committee on Energy and Commerce; the bill. I hope he is at least in a quan- lying bill is not going to work because but this Bishop-Markey amendment dary about maybe voting for the bill at it lacks one crucial element, and that would provide critical improvements to some point in time, although he has is vision, the vision to see that we need it. not yet done so. to pivot off the status quo of the cur- Support this amendment today. But as he just pointed out on the un- rent energy policy and move to a new The Acting CHAIRMAN (Mr. SIMP- derlying bill, we do encourage States, I energy plan that makes sense for a new SON). The question is on the amend- think the language is, encourages the century. ment offered by the gentleman from States to have such a ban, but we do The fact of the matter is, and the New York (Mr. BISHOP). not have the Federal preemptive ban dirty little secret in this place, those The question was taken; and the Act- that the gentleman from Michigan involved in energy policy have to ing Chairman announced that the noes wanted. admit it, is that no matter how many appeared to have it. Mr. Chairman, in summary, I oppose incentives we give to the oil compa- Mr. BISHOP of New York. Mr. Chair- this amendment. I think we have nies, how many royalty relief provi- man, I demand a recorded vote. pointed out a number of flaws in it. I sions are loaded in this bill, even The Acting CHAIRMAN. Pursuant to would hope at the appropriate time the though the President who comes from clause 6 of rule XVIII, further pro- body would vote it down. the oil industry says that it is not nec- ceedings on the amendment offered by Mr. Chairman, I yield back the bal- essary, given the high price of oil, is the gentleman from New York (Mr. ance of my time. that we cannot produce our way out of BISHOP) will be postponed.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00212 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.165 H20PT1 April 20, 2005 CONGRESSIONAL RECORD — HOUSE H2365 It is now in order to consider amend- that, what we would save simply on the ka (Chairman YOUNG) to see if there is ment No. 8 printed in House Report wear and tear, the pure mechanics of a meeting of the minds between now 109–49. the escalator, probably would be even and conference. We will go into the AMENDMENT NO. 8 OFFERED BY MS. SLAUGHTER higher than the energy savings. base bill. It will be a House position Ms. SLAUGHTER. Mr. Chairman, I Mr. Chairman, the traditional esca- when we go to conference. But if for offer an amendment. lators are used more than 90 billion some reason we cannot satisfy these The Acting CHAIRMAN. The Clerk times a year in the United States; and safety concerns, since I am probably will designate the amendment. with more than 30,000 of them across going to be the chairman of the con- The text of the amendment is as fol- the country, escalators move more peo- ference, I would reserve the right to lows: ple than airplanes. And since almost drop it in conference after consultation Amendment No. 8 offered by Ms. SLAUGH- all of them are out of order a good per- with the gentlewoman if we cannot TER: centage of the time, we know that it is work out some of these concerns. But In title I, subtitle C, add at the end the fol- important that we do something to for tonight we would take it. lowing new section: conserve that kind of money and the Mr. Chairman, I reserve the balance SEC. 135. INTERMITTENT ESCALATORS. investment we have made in the esca- of my time. Section 543 of the National Energy Con- lators. Ms. SLAUGHTER. Mr. Chairman, I servation Policy Act (42 U.S.C. 8253) is As I pointed out, the amount of en- yield myself such time as I may con- amended by adding at the end the following new subsection: ergy consumed is estimated to be 260 sume. ‘‘(e) INTERMITTENT ESCALATORS.— million kilowatts an hour, which we I thank the gentleman very much for ‘‘(1) REQUIREMENT.—Except as provided in would save a cost to the Nation, if all his support. I appreciate that. And if it paragraph (2), any escalator acquired for in- of them were intermittent, of $260 mil- is all right with the chairman, I will stallation in a Federal building shall be an lion a year. inundate him with that information intermittent escalator. I want to quote an analyst at Law- between now and then. ‘‘(2) EXCEPTION.—Paragraph (1) shall not rence Livermore National Laboratory. Mr. Chairman, I yield back the bal- apply at a location outside the United States The intermittent escalators, says Law- ance of my time. where the Federal agency determines that to Mr. BARTON of Texas. Mr. Chair- acquire an intermittent escalator would re- rence Livermore, are 40 to 50 percent quire substantially greater cost to the Gov- more energy efficient than traditional man, I yield myself such time as I may ernment over the life of the escalator. escalators. This was borne out by a consume. ‘‘(3) ADDITIONAL ENERGY CONSERVATION case study supplied to me from the Mr. Chairman, with that reservation, MEASURES.—In addition to complying with German Embassy, which found 40 per- the majority accepts the gentle- paragraph (1), Federal agencies shall incor- cent savings in Germany. Energy can woman’s amendment and urges a mild porate other escalator energy conservation be particularly saved when the esca- ‘‘yes’’ vote. measures, as appropriate. lator is used only during rush hours. Mr. Chairman, I yield back the bal- ‘‘(4) DEFINITION.—For purposes of this sub- Replacing all of them would save us ance of my time. section, the term ‘intermittent escalator’ The Acting CHAIRMAN. The ques- means an escalator that remains in a sta- an awful lot of money, but this bill tionary position until it automatically oper- does not replace them all. It simply re- tion is on the amendment offered by ates at the approach of a passenger, return- quires that new escalators be of the the gentlewoman from New York (Ms. ing to a stationary position after the pas- intermittent variety. And I strongly SLAUGHTER). senger completes passage.’’. hope that we will accept this amend- The amendment was agreed to. The Acting CHAIRMAN. Pursuant to ment this evening as part of this en- The Acting CHAIRMAN. It is now in House Resolution 219, the gentlewoman ergy bill. order to consider amendment No. 9 from New York (Ms. SLAUGHTER) and Mr. Chairman, I reserve the balance printed in House Report 109–49. It is now in order to consider amend- the gentleman from Texas (Mr. BAR- of my time. ment No. 10 printed in House Report TON) each will control 5 minutes. Mr. BARTON of Texas. Mr. Chair- The Chair recognizes the gentle- man, I yield myself such time as I may 109–49. Mr. BARTON of Texas. Mr. Chair- woman from New York (Ms. SLAUGH- consume. man, I ask unanimous consent, on the TER). Mr. Chairman, I rise to qualify in op- Ms. SLAUGHTER. Mr. Chairman, I position. And I say ‘‘qualify’’ because Oberstar amendment, even though he yield myself such time as I may con- when I looked at the amendment sev- is not here, that the gentleman from sume. eral days ago, it appeared to me to be Michigan (Mr. DINGELL) be allowed to In 1998 Congress set a goal for 2005 to a reasonable amendment. Since the offer it, and if he will on the gentleman improve the energy efficiency in con- gentlewoman was born in Texas, it from Minnesota’s (Mr. OBERSTAR) be- gressional buildings by 20 percent. And gave me another reason to say yes. And half, I will accept it. I know that the Architect of the Cap- since she is a member of the Com- The Acting CHAIRMAN. Is there ob- itol has been working very hard to mittee on Rules and every now and jection to the request of the gentleman reach the goal. However, we have not. then I will need a vote from the minor- from Texas? Yet the skyrocketing gasoline prices ity on the Committee on Rules, there There was no objection. remind us that we must do more for was another reason. So we had lots of AMENDMENT NO. 10 OFFERED BY MR. DINGELL conservation. reasons to say yes, and so we did say Mr. DINGELL. Mr. Chairman, I offer I am disappointed that the under- yes. an amendment. lying legislation gives 94 percent of its Then we found out that the gen- The Acting CHAIRMAN. The Clerk benefits to the oil and gas industry and tleman from Alaska (Mr. YOUNG), the will designate the amendment. only 6 percent to conservation and re- chairman of Committee on Transpor- The text of the amendment is as fol- newable efforts. tation and Infrastructure, had some lows: My amendment, I think, is a good concerns about it, and the General Amendment No. 10 offered by Mr. DINGELL: start at least on some conservation. It At the end of subtitle A of title II, add the Services Administration had some con- following (and conform the table of contents would simply require that any new es- cerns about it. And the concern is that accordingly): calator being installed in Federal these intermittent escalators some- SEC. 209. INSTALLATION OF PHOTOVOLTAIC SYS- buildings to be an intermittent esca- times cause a safety problem because TEM. lator. These have been in use in Europe they start and stop too soon and they There is authorized to be appropriated to for 30 or 40 years; and I know that when apparently break down more fre- the General Services Administration to in- I first saw one, I could hardly believe quently than continuous-operation es- stall a photovoltaic system, as set forth in it. It does not begin until the passenger calators. the Sun Wall Design Project, for the head- steps on a pad entering into the esca- So here is my proposal to the gentle- quarters building of the Department of En- ergy located at 1000 Independence Avenue lator and stops when the passengers woman: I am willing to accept it with Southwest in the District of Columbia, com- are off. We would save about 40 percent the understanding that we are going to monly know as the Forrestal Building, of the fuel costs, the electricity costs, work with the General Services Admin- $20,000,000 for fiscal year 2006. Such sums the energy costs. But in addition to istration and the gentleman from Alas- shall remain available until expended.

VerDate jul 14 2003 05:23 Apr 21, 2005 Jkt 039060 PO 00000 Frm 00213 Fmt 7634 Sfmt 0634 E:\CR\FM\K20AP7.170 H20PT1 H2366 CONGRESSIONAL RECORD — HOUSE April 20, 2005 The Acting CHAIRMAN. Pursuant to alternative, renewable fuels. In fact, Mr. BARTON of Texas. Mr. Chair- House Resolution 219, the gentleman the time is long past overdue. The fed- man, since the gentleman from Cali- from Michigan (Mr. DINGELL) and a eral government is the Nation’s largest fornia is a member of the committee of Member opposed each will each control energy consumer, a typical office jurisdiction and since he offered this in 5 minutes. building is estimated to spend one- committee and it was made in order by The Chair recognizes the gentleman third of its operating expenses on en- the Committee on Rules to be offered, from Michigan (Mr. DINGELL). ergy costs. Using alternative sources of even though he was somewhat tardy in Mr. DINGELL. Mr. Chairman, I yield energy will help us reduce these costs. arriving, would a unanimous consent myself such time as I may consume. Photovoltaics are a proven, reliable request, if made and not objected to, Under the unanimous consent re- source of energy. Simply put, photo- give him the right to offer the amend- quest, I assume, then, that I have of- voltaic systems convert solar energy ment now? fered it; and I yield to the gentleman into electricity. They not only reduce The Acting CHAIRMAN. Such a re- from the great State of Texas (Mr. the consumption of fossil fuels, but quest may only be entertained in the BARTON). they are highly efficient and have no full House. Mr. BARTON of Texas. Mr. Chair- moving parts, so the need for mainte- Mr. BARTON of Texas. Mr. Chair- man, I thank the gentleman for yield- nance is virtually non-existent. Be- man, I move that the Committee do ing to me. And I would simply say that cause they emit no harmful pollutants, now rise. the gentleman from Minnesota (Mr. they are a clean, environmentally- The motion was agreed to. OBERSTAR), the ranking member on the friendly energy source. Accordingly, the Committee rose; Committee on Transportation and In- H.R. 6 does include provisions aimed and the Speaker pro tempore (Mr. frastructure, has offered an amend- at increasing energy efficiency in our FLAKE) having assumed the chair, Mr. ment that would authorize $20 million public buildings. I am especially SIMPSON, Acting Chairman of the Com- for the administrator of General Serv- pleased to see in the bill section 205 (re- mittee of the Whole House on the State ices Administration to proceed with garding the procurement and installa- of the Union, reported that that Com- the Sun Wall design project, and the tion of photovoltaics in federal build- mittee, having had under consideration majority is prepared to accept it and ings generally), which I offered, and the bill (H.R. 6) to ensure jobs for our work with the gentleman from Michi- which was accepted, as an amendment future with secure, affordable, and reli- gan (Mr. DINGELL) and the gentleman during consideration of the energy bill able energy, had come to no resolution from Minnesota (Mr. OBERSTAR) to last Congress. thereon. Over 25 Federal buildings throughout maintain it in conference with the Sen- f ate. the country, from Boston, Massachu- I urge a ‘‘yes’’ vote. setts to San Francisco, California, al- MAKING IN ORDER AT ANY TIME Mr. DINGELL. Mr. Chairman, re- ready use photovoltaics to great effect. WAXMAN AMENDMENT NO. 9 claiming my time and continuing my We ought to add the national head- DURING FURTHER CONSIDER- comments, I rejoice that the gen- quarters of the Department of Energy ATION OF H.R. 6, ENERGY POL- tleman has accepted it. I commend him to that list. ICY ACT OF 2005 The Sun Wall Project is an oppor- for having done so. Mr. WAXMAN. Mr. Speaker, I ask tunity to have the Department of En- (Mr. OBERSTAR asked and was given unanimous consent that Waxman ergy Headquarters building in our Na- permission to revise and extend his re- amendment No. 9 be allowed to be of- tion’s capital—the building where en- marks.) fered at any time to H.R. 6. ergy policy is debated and refined— Mr. OBERSTAR. Mr. Chairman, I rise The SPEAKER pro tempore. Is there stand as a testament to the utility and to express my appreciation to the gen- objection to the request of the gen- promise of photovoltaics. In a city of tleman from Michigan for offering the tleman from California? monuments, the Sun Wall Project amendment I had planned to and was There was no objection. would be a monument to America’s designated to offer, and to the gen- f tleman from Texas for accepting the commitment to advanced technologies, amendment. alternative energy and a cleaner envi- ENERGY POLICY ACT OF 2005 Mr. Chairman, I rise in support of the ronment. The SPEAKER pro tempore. Pursu- I urge my colleagues to support the Oberstar-Norton amendment. The ant to House Resolution 219 and rule amendment. amendment authorizes the Adminis- XVIII, the Chair declares the House in Mr. DINGELL. Mr. Chairman, I yield trator of the General Services Adminis- the Committee of the Whole House on back the balance of my time. tration to install a photovoltaic solar The Acting CHAIRMAN. The ques- the State of the Union for the further energy system (photovoltaics) in ac- tion is on the amendment offered by consideration of the bill, H.R. 6. cordance with the Sun Wall Design the gentleman from Michigan (Mr. DIN- b 1959 Project on the Forrestal Building, the GELL). IN THE COMMITTEE OF THE WHOLE headquarters building of the Depart- The amendment was agreed to. ment of Energy located on Independ- Accordingly, the House resolved REQUEST TO OFFER AMENDMENT NO. 9 itself into the Committee of the Whole ence Avenue in Washington, D.C. Mr. WAXMAN. Mr. Chairman, I have House on the State of the Union for the The Sun Wall is an engineering and an amendment at the desk, and I ask further consideration of the bill (H.R. architectural marvel; 24,750 square feet unanimous consent to be able to go 6) to ensure jobs for our future with se- of power generating panels installed on back to that amendment. cure, affordable, and reliable energy, the building’s south facing wall. It is Mr. BARTON of Texas. Mr. Chair- with Mr. SIMPSON (Acting Chairman) in also visually exciting, reaching 300 feet man, I reserve the right to object, and the chair. wide and 130 feet high. In fact, the Sun I will not object. Wall design was selected as the win- The Acting CHAIRMAN. The gen- The Clerk read the title of the bill. ning design in an national contest tleman will have to offer his amend- The Acting CHAIRMAN. When the sponsored jointly by the Department of ment in the full House. We cannot go Committee of the Whole rose earlier Energy and the National Renewable back to the amendment. today, amendment No. 10 printed in Fuels Laboratory. The project design Mr. BARTON of Texas. Mr. Chair- House Report 109–49 offered by the gen- was completed 5 years ago, in 2000. The man, I reserve the right to object. tleman from Michigan (Mr. DINGELL) project design is ready to go. All that The Acting CHAIRMAN. The Chair is had been disposed of. is left to do is provide funding for the not entertaining the motion because AMENDMENT NO. 9 OFFERED BY MR. WAXMAN project so that construction of the Sun we cannot go back to the amendment. Mr. WAXMAN. Mr. Chairman, I offer Wall can begin. PARLIAMENTARY INQUIRY an amendment. With ever rising oil prices and our Mr. BARTON of Texas. Mr. Chair- The Acting CHAIRMAN. The Clerk country’s ever-increasing dependence man, parliamentary inquiry. will designate the amendment. on oil, the time has come for the fed- The Acting CHAIRMAN. The gen- The text of the amendment is as fol- eral government to get serious about tleman may inquire. lows:

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