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DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

TITLE VIII--FUELS AND VEHICLES

Subtitle A--CAFE Standards, Alternative Fuels, and Advanced Technology

      Sec. 801. Increased fuel economy standards.

      Sec. 802. Expedited procedures for congressional increase in fuel economy standards.

      Sec. 803. Revised considerations for decisions on maximum feasible average fuel economy.

      Sec. 804. Extension of maximum fuel economy increase for alternative fueled vehicles.

      Sec. 805. Procurement of alternative fueled and hybrid light duty trucks.

      Sec. 806. Use of alternative fuels.

      Sec. 807. Hybrid electric and fuel cell vehicles.

      Sec. 808. Diesel fueled vehicles.

      Sec. 809. Fuel cell demonstration.

      Sec. 810. Bus replacement.

      Sec. 811. Average fuel economy standards for pickup trucks.

      Sec. 812. Exception to HOV passenger requirements for alternative fuel vehicles.

      Sec. 813. Data collection.

      Sec. 814. Green school bus pilot program.

      Sec. 815. Fuel cell bus development and demonstration program.

      Sec. 816. Authorization of appropriations.

      Sec. 817. Temporary biodiesel credit expansion.

      Sec. 818. Neighborhood electric vehicles.

      Sec. 819. Credit for hybrid vehicles, dedicated alternative fuel vehicles, and infrastructure.

      Sec. 820. Renewable content of motor vehicle fuel.

      Sec. 820A. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement.

      Sec. 820B. Commercial byproducts from municipal solid waste loan guarantee program.

Subtitle B--Additional Fuel Efficiency Measures

      Sec. 821. Fuel efficiency of the Federal fleet of automobiles.

      Sec. 822. Idling reduction systems in heavy duty vehicles.

      Sec. 823. Conserve By Bicycling program.

      Sec. 824. Fuel cell vehicle program.

Subtitle C--Federal Reformulated Fuels

      Sec. 831. Short title.

      Sec. 832. Leaking underground storage tanks.

      Sec. 833. Authority for water quality protection from fuels.

      Sec. 834. Elimination of oxygen content requirement for reformulated gasoline.

      Sec. 835. Public health and environmental impacts of fuels and fuel additives.

      Sec. 836. Analyses of motor vehicle fuel changes.

      Sec. 837. Additional opt-in areas under reformulated gasoline program.

      Sec. 838. Federal enforcement of State fuels requirements.

      Sec. 839. Fuel system requirements harmonization study.

      Sec. 840. Review of Federal procurement initiatives relating to use of recycled products and fleet and transportation efficiency.

TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

Subtitle A--Low Income Assistance and State Energy Programs

      Sec. 901. Increased funding for LIHEAP, weatherization assistance, and State energy grants.

      Sec. 902. State energy programs.

      Sec. 903. Energy efficient schools.

      Sec. 904. Low income community energy efficiency pilot program.

      Sec. 905. Energy efficient appliance rebate programs.

Subtitle B--Federal Energy Efficiency

      Sec. 911. Energy management requirements.

      Sec. 912. Energy use measurement and accountability.

      Sec. 913. Federal building performance standards.

      Sec. 914. Procurement of energy efficient products.

      Sec. 915. Repeal of energy savings performance contract sunset.

      Sec. 916. Energy savings performance contract definitions.

      Sec. 917. Review of energy savings performance contract program.

      Sec. 918. Federal Energy Bank.

      Sec. 919. Energy and water saving measures in congressional buildings.

      Sec. 920. Increased use of recovered material in federally funded projects involving procurement of cement or concrete.

Subtitle C--Industrial Efficiency and Consumer Products

      Sec. 921. Voluntary commitments to reduce industrial energy intensity.

      Sec. 922. Authority to set standards for commercial products.

      Sec. 923. Additional definitions.

      Sec. 924. Additional test procedures.

      Sec. 925. Energy labeling.

      Sec. 926. Energy Star Program.

      Sec. 927. Energy conservation standards for central air-conditioners and heat pumps.

      Sec. 928. Energy conservation standards for additional consumer and commercial products.

      Sec. 929. Consumer education on energy efficiency benefits of air-conditioning, heating, and ventilation maintenance.

      Sec. 930. Study of energy efficiency standards.

Subtitle D--Housing Efficiency

      Sec. 931. Capacity building for energy efficient, affordable housing.

      Sec. 932. Increase of CDBG public services cap for energy conservation and efficiency activities.

      Sec. 933. FHA mortgage insurance incentives for energy efficient housing.

      Sec. 934. Public housing capital fund.

      Sec. 935. Grants for energy-conserving improvements for assisted housing.

      Sec. 936. North American Development Bank.

      Sec. 937. Capital fund.

      Sec. 938. Energy-efficient appliances.

      Sec. 939. Energy efficiency standards.

      Sec. 940. Energy strategy for HUD.

Subtitle E--Rural and Remote Communities

DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

TITLE X--NATIONAL CLIMATE CHANGE POLICY

Subtitle A--Sense of Congress

Subtitle B--Climate Change Strategy

Subtitle C--Science and Technology Policy

      Sec. 1021. Global climate change in the Office of Science and Technology Policy.

      Sec. 1022. Director of Office of Science and Technology Policy Functions.

Subtitle D--Miscellaneous Provisions

      Sec. 1031. Additional information for regulatory review.

      Sec. 1032. Greenhouse gas emissions from Federal facilities.

TITLE XI--NATIONAL GREENHOUSE GAS DATABASE


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DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

TITLE VIII--FUELS AND VEHICLES

Subtitle A--CAFE Standards, Alternative Fuels, and Advanced Technology

SEC. 801. INCREASED FUEL ECONOMY STANDARDS.

    (a) REQUIREMENT FOR NEW REGULATIONS-

      (1) IN GENERAL- The Secretary of Transportation shall issue, under section 32902 of title 49, United States Code, new regulations setting forth increased average fuel economy standards for automobiles that are determined on the basis of the maximum feasible average fuel economy levels for the automobiles, taking into consideration the matters set forth in subsection (f) of such section.

      (2) TIME FOR ISSUING REGULATIONS-

        (A) NON-PASSENGER AUTOMOBILES- For non-passenger automobiles, the Secretary of Transportation shall issue the final regulations not later than 15 months after the date of the enactment of this Act.

        (B) PASSENGER AUTOMOBILES- For passenger automobiles, the Secretary of Transportation shall issue--

          (i) the proposed regulations not later than 180 days after the date of the enactment of this Act; and

          (ii) the final regulations not later than 2 years after that date.

    (b) PHASED INCREASES- The regulations issued pursuant to subsection (a) shall specify standards that take effect successively over several vehicle model years not exceeding 15 vehicle model years.

    (c) CLARIFICATION OF AUTHORITY TO AMEND PASSENGER AUTOMOBILE STANDARD- Section 32902(b) of title 49, United States Code, is amended by inserting before the period at the end the following: `or such other number as the Secretary prescribes under subsection (c)'.

    (d) ENVIRONMENTAL ASSESSMENT- When issuing final regulations setting forth increased average fuel economy standards under this section, the Secretary of Transportation shall also issue an environmental assessment of the effects of the implementation of the increased standards on the environment under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

    (e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Department of Transportation for fiscal year 2003, to remain available until expended, $2,000,000 to carry out this section.

SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL INCREASE IN FUEL ECONOMY STANDARDS.

    (a) CONDITION FOR APPLICABILITY- If the Secretary of Transportation fails to issue final regulations with respect to non-passenger automobiles under section 801, or fails to issue final regulations with respect to passenger automobiles under such section, on or before the date by which such final regulations are required by such section to be issued, respectively, then this section shall apply with respect to a bill described in subsection (b).

    (b) BILL- A bill referred to in this subsection is a bill that satisfies the following requirements:

      (1) INTRODUCTION- The bill is introduced by one or more Members of Congress not later than 60 days after the date referred to in subsection (a).

      (2) TITLE- The title of the bill is as follows: `A bill to establish new average fuel economy standards for certain motor vehicles.'.

      (3) TEXT- The bill provides after the enacting clause only the text specified in subparagraph (A) or (B) or any provision described in subparagraph (C), as follows:

        (A) NON-PASSENGER AUTOMOBILES- In the case of a bill relating to a failure timely to issue final regulations relating to non-passenger automobiles, the following text:

    `That, section 32902 of title 49, United States Code, is amended by adding at the end the following new subsection:

    `(X) NON-PASSENGER AUTOMOBILES- The average fuel economy standard for non-passenger automobiles manufactured by a manufacturer in a model year after model year XX shall be XX miles per gallon.', the first blank space being filled in with a subsection designation, the second blank space being filled in with the number of a year, and the third blank space being filled in with a number.

        (B) PASSENGER AUTOMOBILES- In the case of a bill relating to a failure timely to issue final regulations relating to passenger automobiles, the following text:

    `That, section 32902(b) of title 49, United States Code, is amended to read as follows:

    `(b) PASSENGER AUTOMOBILES- Except as provided in this section, the average fuel economy standard for passenger automobiles manufactured by a manufacturer in a model year after model year XX shall be XX miles per gallon.', the first blank space being filled in with the number of a year and the second blank space being filled in with a number.

        (C) SUBSTITUTE TEXT- Any text substituted by an amendment that is in order under subsection (c)(3).

    (c) EXPEDITED PROCEDURES- A bill described in subsection (b) shall be considered in a House of Congress in accordance with the procedures provided for the consideration of joint resolutions in paragraphs (3) through (8) of section 8066(c) of the Department of Defense Appropriations Act, 1985 (as contained in section 101(h) of Public Law 98-473; 98 Stat. 1936), with the following exceptions:

      (1) REFERENCES TO RESOLUTION- The references in such paragraphs to a resolution shall be deemed to refer to the bill described in subsection (b).

      (2) COMMITTEES OF JURISDICTION- The committees to which the bill is referred under this subsection shall--

        (A) in the Senate, be the Committee on Commerce, Science, and Transportation; and

        (B) in the House of Representatives, be the Committee on Energy and Commerce.

      (3) AMENDMENTS-

        (A) AMENDMENTS IN ORDER- Only four amendments to the bill are in order in each House, as follows:

          (i) Two amendments proposed by the majority leader of that House.

          (ii) Two amendments proposed by the minority leader of that House.

        (B) FORM AND CONTENT- To be in order under subparagraph (A), an amendment shall propose to strike all after the enacting clause and substitute text that only includes the same text as is proposed to be stricken except for one or more different numbers in the text.

        (C) DEBATE, ET CETERA- Subparagraph (B) of section 8066(c)(5) of the Department of Defense Appropriations Act, 1985 (98 Stat. 1936) shall apply to the consideration of each amendment proposed pursuant to subparagraph (A) of this paragraph in the same manner as such subparagraph (B) applies to debatable motions.

SEC. 803. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE AVERAGE FUEL ECONOMY.

    Section 32902(f) of title 49, United States Code, is amended to read as follows:

    `(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE AVERAGE FUEL ECONOMY- When deciding maximum feasible average fuel economy under this section, the Secretary of Transportation shall consider the following matters:

      `(1) Technological feasibility.

      `(2) Economic practicability.

      `(3) The effect of other motor vehicle standards of the Government on fuel economy.

      `(4) The need of the United States to conserve energy.

      `(5) The desirability of reducing United States dependence on imported oil.

      `(6) The effects of the average fuel economy standards on motor vehicle and passenger safety.

      `(7) The effects of increased fuel economy on air quality.

      `(8) The adverse effects of average fuel economy standards on the relative competitiveness of manufacturers.

      `(9) The effects of compliance with average fuel economy standards on levels of employment in the United States.

      `(10) The cost and lead time necessary for the introduction of the necessary new technologies.

      `(11) The potential for advanced technology vehicles, such as hybrid and fuel cell vehicles, to contribute to the achievement of significant reductions in fuel consumption.

      `(12) The extent to which the necessity for vehicle manufacturers to incur near-term costs to comply with the average fuel economy standards adversely affects the availability of resources for the development of advanced technology for the propulsion of motor vehicles.

      `(13) The report of the National Research Council that is entitled `Effectiveness and Impact of Corporate Average Fuel Economy Standards', issued in January 2002.'.

SEC. 804. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE FUELED VEHICLES.

    Section 32906(a)(1) of title 49, United States Code, is amended--

      (1) in subparagraph (A), by striking `1993-2004' and inserting `1993 through 2008'; and

      (2) in subparagraph (B), by striking `2005-2008' and inserting `2009 through 2012'.

SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY TRUCKS.

    (a) VEHICLE FLEETS NOT COVERED BY REQUIREMENT IN ENERGY POLICY ACT OF 1992-

      (1) HYBRID VEHICLES- The head of each agency of the executive branch shall coordinate with the Administrator of General Services to ensure that only hybrid vehicles are procured by or for each agency fleet of light duty trucks that is not in a fleet of vehicles to which section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies.

      (2) WAIVER AUTHORITY- The head of an agency, in consultation with the Administrator, may waive the applicability of the policy regarding the procurement of hybrid vehicles in paragraph (1) to that agency to the extent that the head of that agency determines necessary--

        (A) to meet specific requirements of the agency for capabilities of light duty trucks;

        (B) to procure vehicles consistent with the standards applicable to the procurement of fleet vehicles for the Federal Government;

        (C) to adjust to limitations on the commercial availability of light duty trucks that are hybrid vehicles; or

        (D) to avoid the necessity of procuring a hybrid vehicle for the agency when each of the hybrid vehicles available for meeting the requirements of the agency has a cost to the United States that exceeds the costs of comparable nonhybrid vehicles by a factor that is significantly higher than the difference between--

          (i) the real cost of the hybrid vehicle to retail purchasers, taking into account the benefit of any tax incentives available to retail purchasers for the purchase of the hybrid vehicle; and

          (ii) the costs of the comparable nonhybrid vehicles to retail purchasers.

      (3) APPLICABILITY TO PROCUREMENTS AFTER FISCAL YEAR 2004- This subsection applies with respect to procurements of light duty trucks in fiscal year 2005 and subsequent fiscal years.

    (b) REQUIREMENT TO EXCEED REQUIREMENT IN ENERGY POLICY ACT OF 1992-

      (1) LIGHT DUTY TRUCKS- The head of each agency of the executive branch shall coordinate with the Administrator of General Services to ensure that, of the light duty trucks procured in fiscal years after fiscal year 2004 for the fleets of light duty vehicles of the agency to which section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies--

        (A) 5 percent of the total number of such trucks that are procured in each of fiscal years 2005 and 2006 are alternative fueled vehicles or hybrid vehicles; and

        (B) 10 percent of the total number of such trucks that are procured in each fiscal year after fiscal year 2006 are alternative fueled vehicles or hybrid vehicles.

      (2) COUNTING OF TRUCKS- Light duty trucks acquired for an agency of the executive branch that are counted to comply with section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year shall be counted to determine the total number of light duty trucks procured for that agency for that fiscal year for the purposes of paragraph (1), but shall not be counted to satisfy the requirement in that paragraph.

    (c) DEFINITIONS- In this section:

      (1) HYBRID VEHICLE- The term `hybrid vehicle' means--

        (A) a motor vehicle that draws propulsion energy from onboard sources of stored energy that are both--

          (i) an internal combustion or heat engine using combustible fuel; and

          (ii) a rechargeable energy storage system; and

        (B) any other vehicle that is defined as a hybrid vehicle in regulations prescribed by the Secretary of Energy for the administration of title III of the Energy Policy Act of 1992.

      (2) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled vehicle' has the meaning given that term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

    (d) INAPPLICABILITY TO DEPARTMENT OF DEFENSE- This section does not apply to the Department of Defense, which is subject to comparable requirements under section 318 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1055; 10 U.S.C. 2302 note).

SEC. 806. USE OF ALTERNATIVE FUELS.

    (a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL FUELED VEHICLES- The head of each agency of the executive branch shall coordinate with the Administrator of General Services to ensure that, not later than January 1, 2009, the fuel actually used in the fleet of dual fueled vehicles used by the agency is an alternative fuel.

    (b) WAIVER AUTHORITY-

      (1) CAPABILITY WAIVER-

        (A) AUTHORITY- If the Secretary of Transportation determines that not all of the dual fueled vehicles can operate on alternative fuels at all times, the Secretary may waive the requirement of subsection (a) in part, but only to the extent that--

          (i) not later than January 1, 2009, not less than 50 percent of the total annual volume of fuel used in the dual fueled vehicles shall be alternative fuels; and

          (ii) not later than January 1, 2011, not less than 75 percent of the total annual volume of fuel used in the dual fueled vehicles shall be alternative fuels.

        (B) EXPIRATION- In no case may a waiver under subparagraph (A) remain in effect after December 31, 2012.

      (2) REGIONAL FUEL AVAILABILITY WAIVER- The Secretary may waive the applicability of the requirement of subsection (a) to vehicles used by an agency in a particular geographic area where the alternative fuel otherwise required to be used in the vehicles is not reasonably available to retail purchasers of the fuel, as certified to the Secretary by the head of the agency.

    (c) DEFINITIONS- In this section:

      (1) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning given that term in section 32901(a)(1) of title 49, United States Code.

      (2) DUAL FUELED VEHICLE- The term `dual fueled vehicle' has the meaning given the term `dual fueled automobile' in section 32901(a)(8) of title 49, United States Code.

      (3) FLEET- The term `fleet', with respect to dual fueled vehicles, has the meaning that is given that term with respect to light duty motor vehicles in section 301(9) of the Energy Policy Act of 1992 (42 U.S.C. 13211(9)).

SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.

    (a) EXPANSION OF SCOPE- The Secretary of Energy shall expand the research and development program of the Department of Energy on advanced technologies for improving the environmental cleanliness of vehicles to emphasize research and development on the following:

      (1) Fuel cells, including--

        (A) high temperature membranes for fuel cells; and

        (B) fuel cell auxiliary power systems.

      (2) Hydrogen storage.

      (3) Advanced vehicle engine and emission control systems.

      (4) Advanced batteries and power electronics for hybrid vehicles.

      (5) Advanced fuels.

      (6) Advanced materials.

    (b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Department of Energy for fiscal year 2003, the amount of $225,000,000 for carrying out the expanded research and development program provided for under this section.

SEC. 808. DIESEL FUELED VEHICLES.

    (a) DIESEL COMBUSTION AND AFTER TREATMENT TECHNOLOGIES- The Secretary of Energy shall accelerate research and development directed toward the improvement of diesel combustion and after treatment technologies for use in diesel fueled motor vehicles.

    (b) GOAL-

      (1) COMPLIANCE WITH TIER 2 EMISSION STANDARDS BY 2010- The Secretary shall carry out subsection (a) with a view to developing and demonstrating diesel technology meeting tier 2 emission standards not later than 2010.

      (2) TIER 2 EMISSION STANDARDS DEFINED- In this subsection, the term `tier 2 emission standards' means the motor vehicle emission standards promulgated by the Administrator of the Environmental Protection Agency on February 10, 2000, under sections 202 and 211 of the Clean Air Act to apply to passenger cars, light trucks, and larger passenger vehicles of model years after the 2003 vehicle model year.

SEC. 809. FUEL CELL DEMONSTRATION.

    (a) PROGRAM REQUIRED- The Secretary of Energy and the Secretary of Defense shall jointly carry out a program to demonstrate--

      (1) fuel cell technologies developed in the PNGV and Freedom Car programs;

      (2) fuel cell technologies developed in research and development programs of the Department of Defense; and

      (3) follow-on fuel cell technologies.

    (b) PURPOSES OF PROGRAM- The purposes of the program are to identify and support technological advances that are necessary to achieve accelerated availability of fuel cell technology for use both for nonmilitary and military purposes.

    (c) COOPERATION WITH INDUSTRY-

      (1) IN GENERAL- The demonstration program shall be carried out in cooperation with industry, including the automobile manufacturing industry and the automotive systems and component suppliers industry.

      (2) COST SHARING- The Secretary of Energy and the Secretary of Defense shall provide for industry to bear, in cash or in kind, at least one-half of the total cost of carrying out the demonstration program.

    (d) DEFINITIONS- In this section:

      (1) PNGV PROGRAM- The term `PNGV program' means the Partnership for a New Generation of Vehicles, a cooperative program engaged in by the Departments of Commerce, Energy, Transportation, and Defense, the Environmental Protection Agency, the National Science Foundation, and the National Aeronautics and Space Administration with the automotive industry for the purpose of developing a new generation of vehicles with capabilities resulting in significantly improved fuel efficiency together with low emissions without compromising the safety, performance, affordability, or utility of the vehicles.

      (2) FREEDOM CAR PROGRAM- The term `Freedom Car program' means a cooperative research program engaged in by the Department of Energy with the United States Council on Automotive Research as a follow-on to the PNGV program.

SEC. 810. BUS REPLACEMENT.

    (a) REQUIREMENT FOR STUDY- The Secretary of Transportation shall carry out a study to determine how best to provide for converting the composition of the fleets of buses in metropolitan areas and school systems from buses utilizing current diesel technology to--

      (1) buses that draw propulsion from onboard fuel cells;

      (2) buses that are hybrid electric vehicles;

      (3) buses that are fueled by clean-burning fuels, such as renewable fuels (including agriculture-based biodiesel fuels), natural gas, and ultra-low sulphur diesel;

      (4) buses that are powered by clean diesel engines: or

      (5) an assortment of buses described in paragraphs (1), (2), (3), and (4).

    (b) REPORT-

      (1) REQUIREMENT- The Secretary of Transportation shall submit a report on the results of the study on bus fleet conversions under subsection (a) to Congress.

      (2) CONTENT- The report on bus fleet conversions shall include the following:

        (A) An assessment of effectuating conversions by the following means:

          (i) Replacement of buses.

          (ii) Replacement of power and propulsion systems in buses utilizing current diesel technology.

          (iii) Other means.

        (B) Feasible schedules for carrying out the conversions.

        (C) Estimated costs of carrying out the conversions.

        (D) An assessment of the benefits of the conversions in terms of emissions control and reduction of fuel consumption.

SEC. 811. AVERAGE FUEL ECONOMY STANDARDS FOR PICKUP TRUCKS.

    (a) IN GENERAL- Section 32902(a) of title 49, United States Code, is amended--

      (1) by inserting `(1)' after the after `AUTOMOBILES- '; and

      (2) by adding at the end the following new paragraph:

    `(2) The average fuel economy standard for pickup trucks manufactured by a manufacturer in a model year after model year 2004 shall be no higher than 20.7 miles per gallon. No average fuel economy standard prescribed under another provision of this section shall apply to pickup trucks.'.

    (b) DEFINITION OF PICKUP TRUCK- Section 32901(a) of such title is amended by adding at the end the following new paragraph:

      `(17) `pickup truck' has the meaning given that term in regulations prescribed by the Secretary for the administration of this chapter, as in effect on January 1, 2002, except that such term shall also include any additional vehicle that the Secretary defines as a pickup truck in regulations prescribed for the administration of this chapter after such date.'.

SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR ALTERNATIVE FUEL VEHICLES.

    Section 102(a)(1) of title 23, United States Code, is amended by inserting after `required' the following: `(unless, in the discretion of the State transportation department, the vehicle is being operated on, or is being fueled by, an alternative fuel (as defined in section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)))'.

SEC. 813. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at the end the following:

    `(m) In order to improve the ability to evaluate the effectiveness of the Nation's renewable fuels mandate, the Administrator shall conduct and publish the results of a survey of renewable fuels consumption in the motor vehicle fuels market in the United States monthly, and in a manner designed to protect the confidentiality of individual responses. In conducting the survey, the Administrator shall collect information retrospectively to 1998, both on a national basis and a regional basis, including--

      (1) the quantity of renewable fuels produced;

      (2) the cost of production;

      (3) the cost of blending and marketing;

      (4) the quantity of renewable fuels blended;

      (5) the quantity of renewable fuels imported; and

      (6) market price data.

SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.

    (a) ESTABLISHMENT- The Secretary of Energy and the Secretary of Transportation shall jointly establish a pilot program for awarding grants on a competitive basis to eligible entities for the demonstration and commercial application of alternative fuel school buses and ultra-low sulfur diesel school buses.

    (b) REQUIREMENTS- Not later than 3 months after the date of the enactment of this Act, the Secretary shall establish and publish in the Federal Register grant requirements on eligibility for assistance, and on implementation of the program established under subsection (a), including certification requirements to ensure compliance with this subtitle.

    (c) SOLICITATION- Not later than 6 months after the date of the enactment of this Act, the Secretary shall solicit proposals for grants under this section.

    (d) ELIGIBLE RECIPIENTS- A grant shall be awarded under this section only--

      (1) to a local governmental entity responsible for providing school bus service for one or more public school systems; or

      (2) jointly to an entity described in paragraph (1) and a contracting entity that provides school bus service to the public school system or systems.

    (e) TYPES OF GRANTS-

      (1) IN GENERAL- Grants under this section shall be for the demonstration and commercial application of technologies to facilitate the use of alternative fuel school buses and ultra-low sulfur diesel school buses instead of buses manufactured before model year 1977 and diesel-powered buses manufactured before model year 1991.

      (2) NO ECONOMIC BENEFIT- Other than the receipt of the grant, a recipient of a grant under this section may not receive any economic benefit in connection with the receipt of the grant.

      (3) PRIORITY OF GRANT APPLICATIONS- The Secretary shall give priority to awarding grants to applicants who can demonstrate the use of alternative fuel buses and ultra-low sulfur diesel school buses instead of buses manufactured before model year 1977.

    (f) CONDITIONS OF GRANT- A grant provided under this section shall include the following conditions:

      (1) All buses acquired with funds provided under the grant shall be operated as part of the school bus fleet for which the grant was made for a minimum of 5 years.

      (2) Funds provided under the grant may only be used--

        (A) to pay the cost, except as provided in paragraph (3), of new alternative fuel school buses or ultra-low sulfur diesel school buses, including State taxes and contract fees; and

        (B) to provide--

          (i) up to 10 percent of the price of the alternative fuel buses acquired, for necessary alternative fuel infrastructure if the infrastructure will only be available to the grant recipient; and

          (ii) up to 15 percent of the price of the alternative fuel buses acquired, for necessary alternative fuel infrastructure if the infrastructure will be available to the grant recipient and to other bus fleets.

      (3) The grant recipient shall be required to provide at least the lesser of 15 percent of the total cost of each bus received or $15,000 per bus.

      (4) In the case of a grant recipient receiving a grant to demonstrate ultra-low sulfur diesel school buses, the grant recipient shall be required to provide documentation to the satisfaction of the Secretary that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the purposes of the grant, and a commitment by the applicant to use such fuel in carrying out the purposes of the grant.

    (g) BUSES- Funding under a grant made under this section may only be used to demonstrate the use of new alternative fuel school buses or ultra-low sulfur diesel school buses that--

      (1) have a gross vehicle weight greater than 14,000 pounds;

      (2) are powered by a heavy duty engine;

      (3) in the case of alternative fuel school buses, emit not more than--

        (A) for buses manufactured in model year 2002, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

        (B) for buses manufactured in model years 2003 through 2006, 1.8 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

      (4) in the case of ultra-low sulfur diesel school buses, emit not more than the lesser of--

        (A) the emissions of nonmethane hydrocarbons, oxides of nitrogen, and particulate matter of the best performing technology of the same class of ultra-low sulfur diesel school buses commercially available at the time the grant is made; or

        (B) the applicable following amounts--

          (i) for buses manufactured in model year 2002 or 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

          (ii) for buses manufactured in model years 2004 through 2006, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter.

    (h) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the maximum extent practicable to achieve nationwide deployment of alternative fuel school buses through the program under this section, and shall ensure a broad geographic distribution of grant awards, with a goal of no State receiving more than 10 percent of the grant funding made available under this section for a fiscal year.

    (i) LIMIT ON FUNDING- The Secretary shall provide not less than 20 percent and not more than 25 percent of the grant funding made available under this section for any fiscal year for the acquisition of ultra-low sulfur diesel school buses.

    (j) DEFINITIONS- For purposes of this section--

      (1) the term `alternative fuel school bus' means a bus powered substantially by electricity (including electricity supplied by a fuel cell), or by liquefied natural gas, compressed natural gas, liquefied petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85 percent by volume;

      (2) the term `idling' means not turning off an engine while remaining stationary for more than approximately 3 minutes; and

      (3) the term `ultra-low sulfur diesel school bus' means a school bus powered by diesel fuel which contains sulfur at not more than 15 parts per million.

    (k) REDUCTION OF SCHOOL BUS IDLING- Each local educational agency (as defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged to develop a policy to reduce the incidence of school buses idling at schools when picking up and unloading students.

SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

    (a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program for entering into cooperative agreements with private sector fuel cell bus developers for the development of fuel cell-powered school buses, and subsequently with not less than two units of local government using natural gas-powered school buses and such private sector fuel cell bus developers to demonstrate the use of fuel cell-powered school buses.

    (b) COST SHARING- The non-Federal contribution for activities funded under this section shall be not less than--

      (1) 20 percent for fuel infrastructure development activities; and

      (2) 50 percent for demonstration activities and for development activities not described in paragraph (1).

    (c) FUNDING- No more than $25,000,000 of the amounts authorized under section 815 may be used for carrying out this section for the period encompassing fiscal years 2003 through 2006.

    (d) REPORTS TO CONGRESS- Not later than 3 years after the date of the enactment of this Act, and not later than October 1, 2006, the Secretary shall transmit to the appropriate congressional committees a report that--

      (1) evaluates the process of converting natural gas infrastructure to accommodate fuel cell-powered school buses; and

      (2) assesses the results of the development and demonstration program under this section.

SEC. 816. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Energy for carrying out sections 814 and 815, to remain available until expended--

      (1) $50,000,000 for fiscal year 2003;

      (2) $60,000,000 for fiscal year 2004;

      (3) $70,000,000 for fiscal year 2005; and

      (4) $80,000,000 for fiscal year 2006.

SEC. 817. TEMPORARY BIODIESEL CREDIT EXPANSION.

    (a) BIODIESEL CREDIT EXPANSION- Section 312(b) of the Energy Policy Act of 1992 (42 U.S.C. 13220(b)) is amended by striking paragraph (2) and inserting the following:

      `(2) USE-

        `(A) IN GENERAL- A fleet or covered person--

          `(i) may use credits allocated under subsection (a) to satisfy more than 50 percent of the alternative fueled vehicle requirements of a fleet or covered person under this title, title IV, and title V; but

          `(ii) may use credits allocated under subsection (a) to satisfy 100 percent of the alternative fueled vehicle requirements of a fleet or covered person under title V for 1 or more of model years 2002 through 2005.

        `(B) APPLICABILITY- Subparagraph (A) does not apply to a fleet or covered person that is a biodiesel alternative fuel provider described in section 501(a)(2)(A).'.

    (b) TREATMENT AS SECTION 508 CREDITS- Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 13220(c)) is amended--

      (1) in the subsection heading, by striking `CREDIT NOT' and inserting `TREATMENT AS'; and

      (2) by striking `shall not be considered' and inserting `shall be treated as'.

    (c) ALTERNATIVE FUELED VEHICLE STUDY AND REPORT-

      (1) DEFINITIONS- In this subsection:

        (A) ALTERNATIVE FUEL- The term `alternative fuel' has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

        (B) ALTERNATIVE FUELED VEHICLE- The term `alternative fueled vehicle' has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

        (C) LIGHT DUTY MOTOR VEHICLE- The term `light duty motor vehicle' has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

        (D) SECRETARY- The term `Secretary' means the Secretary of Energy.

      (2) BIODIESEL CREDIT EXTENSION STUDY- As soon as practicable after the date of enactment of this Act, the Secretary shall conduct a study--

        (A) to determine the availability and cost of light duty motor vehicles that qualify as alternative fueled vehicles under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.); and

        (B) to compare--

          (i) the availability and cost of biodiesel; with

          (ii) the availability and cost of fuels that qualify as alternative fuels under title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 et seq.).

      (3) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report that--

        (A) describes the results of the study conducted under paragraph (2); and

        (B) includes any recommendations of the Secretary for legislation to extend the temporary credit provided under subsection (a) beyond model year 2005.

SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is amended--

      (1) by striking `or a dual fueled vehicle' and inserting `, a dual fueled vehicle, or a neighborhood electric vehicle';

      (2) by striking `and' at the end of paragraph (13);

      (3) by striking the period at the end of subparagraph (14) and inserting `; and'; and

      (4) by adding at the end the following:

      `(15) the term `neighborhood electric vehicle' means a motor vehicle that qualifies as both--

        `(A) a low-speed vehicle, as such term is defined in section 571.3(b) of title 49, Code of Federal Regulations; and

        `(B) a zero-emission vehicle, as such term is defined in section 86.1703-99 of title 40, Code of Federal Regulations.'.

SEC. 819. CREDIT FOR HYBRID VEHICLES, DEDICATED ALTERNATIVE FUEL VEHICLES, AND INFRASTRUCTURE.

    Section 507 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended by adding at the end the following:

    `(p) CREDITS FOR NEW QUALIFIED HYBRID MOTOR VEHICLES-

      `(1) DEFINITIONS- In this subsection:

        `(A) 2000 MODEL YEAR CITY FUEL EFFICIENCY- The term `2000 model year city fuel efficiency', with respect to a motor vehicle, means fuel efficiency determined in accordance with the following tables:

          `(i) In the case of a passenger automobile:

The 2000 model year city

`If vehicle inertia weight class is:

fuel efficiency is:

1,500 or 1,750 lbs

43.7 mpg

2,000 lbs

38.3 mpg

2,250 lbs

34.1 mpg

2,500 lbs

30.7 mpg

2,750 lbs

27.9 mpg

3,000 lbs

25.6 mpg

3,500 lbs

22.0 mpg

4,000 lbs

19.3 mpg

4,500 lbs

17.2 mpg

5,000 lbs

15.5 mpg

5,500 lbs

14.1 mpg

6,000 lbs

12.9 mpg

6,500 lbs

11.9 mpg

7,000 to 8,500 lbs

11.1 mpg.

          `(ii) In the case of a light truck:

The 2000 model year city

`If vehicle inertia weight class is:

fuel efficiency is:

1,500 or 1,750 lbs

37.6 mpg

2,000 lbs

33.7 mpg

2,250 lbs

30.6 mpg

2,500 lbs

28.0 mpg

2,750 lbs

25.9 mpg

3,000 lbs

24.1 mpg

3,500 lbs

21.3 mpg

4,000 lbs

19.0 mpg

4,500 lbs

17.3 mpg

5,000 lbs

15.8 mpg

5,500 lbs

14.6 mpg

6,000 lbs

13.6 mpg

6,500 lbs

12.8 mpg

7,000 to 8,500 lbs

12.0 mpg.

        `(B) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.

        `(C) ENERGY STORAGE DEVICE- The term `energy storage device' means an onboard rechargeable energy storage system or similar storage device.

        `(D) FUEL EFFICIENCY- The term `fuel efficiency' means the percentage increased fuel efficiency specified in table 1 in paragraph (2)(C) over the average 2000 model year city fuel efficiency of vehicles in the same weight class.

        `(E) MAXIMUM AVAILABLE POWER- The term `maximum available power', with respect to a new qualified hybrid motor vehicle that is a passenger vehicle or light truck, means the quotient obtained by dividing--

          `(i) the maximum power available from the electrical storage device of the new qualified hybrid motor vehicle, during a standard 10-second pulse power or equivalent test; by

          `(ii) the sum of--

            `(I) the maximum power described in clause (i); and

            `(II) the net power of the internal combustion or heat engine, as determined in accordance with standards established by the Society of Automobile Engineers.

        `(F) MOTOR VEHICLE- The term `motor vehicle' has the meaning given the term in section 216 of the Clean Air Act (42 U.S.C. 7550).

        `(G) NEW QUALIFIED HYBRID MOTOR VEHICLE- The term `new qualified hybrid motor vehicle' means a motor vehicle that--

          `(i) draws propulsion energy from both--

            `(I) an internal combustion engine (or heat engine that uses combustible fuel); and

            `(II) an energy storage device;

          `(ii) in the case of a passenger automobile or light truck--

            `(I) in the case of a 2001 or later model vehicle, receives a certificate of conformity under the Clean Air Act (42 U.S.C. 7401 et seq.) and produces emissions at a level that is at or below the applicable qualifying California low emissions vehicle standards established under authority of section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) for that make and model year; and

            `(II) in the case of a 2004 or later model vehicle, is certified by the Administrator as producing emissions at a level that is at or below the level established for Bin 5 vehicles in the Tier 2 regulations promulgated by the Administrator under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year vehicle; and

          `(iii) employs a vehicle braking system that recovers waste energy to charge an energy storage device.

        `(H) VEHICLE INERTIA WEIGHT CLASS- The term `vehicle inertia weight class' has the meaning given the term in regulations promulgated by the Administrator for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).

      `(2) ALLOCATION-

        `(A) IN GENERAL- The Secretary shall allocate a partial credit to a fleet or covered person under this title if the fleet or person acquires a new qualified hybrid motor vehicle that is eligible to receive a credit under each of the tables in subparagraph (C).

        `(B) AMOUNT- The amount of a partial credit allocated under subparagraph (A) for a vehicle described in that subparagraph shall be equal to the sum of--

          `(i) the partial credits determined under table 1 in subparagraph (C); and

          `(ii) the partial credits determined under table 2 in subparagraph (C).

        `(C) TABLES- The tables referred to in subparagraphs (A) and (B) are as follows:

`Table 1

--Amount of

`Partial credit for increased fuel efficiency:

--credit:

At least 125% but less than 150% of 2000 model year city fuel efficiency

--0.14

At least 150% but less than 175% of 2000 model year city fuel efficiency

--0.21

At least 175% but less than 200% of 2000 model year city fuel efficiency

--0.28

At least 200% but less than 225% of 2000 model year city fuel efficiency

--0.35

At least 225% but less than 250% of 2000 model year city fuel efficiency

--0.50.

`Table 2

--Amount of

`Partial credit for `Maximum Available Power':

--credit:

At least 5% but less than 10%

--0.125

At least 10% but less than 20%

--0.250

At least 20% but less than 30%

--0.375

At least 30% or more

--0.500.

        `(D) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the acquisition of the qualified hybrid motor vehicle is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.

      `(3) REGULATIONS- The Secretary shall promulgate regulations under which any Federal fleet that acquires a new qualified hybrid motor vehicle will receive partial credits determined under the tables contained in paragraph (2)(C) for purposes of meeting the requirements of section 303.

    `(q) CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARDS USE OF DEDICATED VEHICLES IN NONCOVERED FLEETS-

      `(1) DEFINITIONS- In this subsection:

        `(A) DEDICATED VEHICLE- The term `dedicated vehicle' includes--

          `(i) a light, medium, or heavy duty vehicle; and

          `(ii) a neighborhood electric vehicle.

        `(B) MEDIUM OR HEAVY DUTY VEHICLE- The term `medium or heavy duty vehicle' includes a vehicle that--

          `(i) operates solely on alternative fuel; and

          `(ii)(I) in the case of a medium duty vehicle, has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds; or

          `(II) in the case of a heavy duty vehicle, has a gross vehicle weight rating of more than 14,000 pounds.

        `(C) SUBSTANTIAL CONTRIBUTION- The term `substantial contribution' (equal to 1 full credit) means not less than $15,000 in cash or in kind services, as determined by the Secretary.

      `(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a fleet or covered person under this title if the fleet or person makes a substantial contribution toward the acquisition and use of dedicated vehicles by a person that owns, operates, leases, or otherwise controls a fleet that is not covered by this title.

      `(3) MULTIPLE CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES- The Secretary shall issue 2 full credits to a fleet or covered person under this title if the fleet or person acquires a medium or heavy duty dedicated vehicle.

      `(4) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the acquisition of the dedicated vehicle is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.

      `(5) LIMITATION- Per vehicle credits acquired under this subsection shall not exceed the per vehicle credits allowed under this section to a fleet for qualifying vehicles in each of the weight categories (light, medium, or heavy duty).

    `(r) CREDIT FOR SUBSTANTIAL INVESTMENT IN ALTERNATIVE FUEL INFRASTRUCTURE-

      `(1) DEFINITIONS- In this section, the term `qualifying infrastructure' means--

        `(A) equipment required to refuel or recharge alternative fueled vehicles;

        `(B) facilities or equipment required to maintain, repair, or operate alternative fueled vehicles;

        `(C) training programs, educational materials, or other activities necessary to provide information regarding the operation, maintenance, or benefits associated with alternative fueled vehicles; and

        `(D) such other activities the Secretary considers to constitute an appropriate expenditure in support of the operation, maintenance, or further widespread adoption of or utilization of alternative fueled vehicles.

      `(2) ISSUANCE OF CREDITS- The Secretary shall issue a credit to a fleet or covered person under this title for investment in qualifying infrastructure if the qualifying infrastructure is open to the general public during regular business hours.

      `(3) AMOUNT- For the purposes of credits under this subsection--

        `(A) 1 credit shall be equal to a minimum investment of $25,000 in cash or in kind services, as determined by the Secretary; and

        `(B) except in the case of a Federal or State fleet, no part of the investment may be provided by Federal or State funds.

      `(4) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the investment is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.'.

SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) IN GENERAL- Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended--

      (1) by redesignating subsection (o) as subsection (q); and

      (2) by inserting after subsection (n) the following:

    `(o) RENEWABLE FUEL PPROGRAM-

      `(1) DEFINITIONS- In this section:

        `(A) CELLULOSIC BIOMASS ETHANOL- The term `cellulosic biomass ethanol' means ethanol derived from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, including--

          `(i) dedicated energy crops and trees;

          `(ii) wood and wood residues;

          `(iii) plants;

          `(iv) grasses;

          `(v) agricultural residues;

          `(vi) fibers;

          `(vii) animal wastes and other waste materials; and

          `(viii) municipal solid waste.

        `(B) RENEWABLE FUEL-

          `(i) IN GENERAL- The term `renewable fuel' means motor vehicle fuel that--

            `(I)(aa) is produced from grain, starch, oilseeds, or other biomass; or

            `(bb) is natural gas produced from a biogas source, including a landfill, sewage waste treatment plant, feedlot, or other place where decaying organic material is found; and

            `(II) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle.

          `(ii) INCLUSION- The term `renewable fuel' includes cellulosic biomass ethanol and biodiesel (as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)).

        `(C) SMALL REFINERY- The term `small refinery' means a refinery for which average aggregate daily crude oil throughput for the calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.

      `(2) RENEWABLE FUEL PROGRAM-

        `(A) IN GENERAL- Not later than 1 year from enactment of this provision, the Administrator shall promulgate regulations ensuring that gasoline sold or dispensed to consumers in the United States, on an annual average basis, contains the applicable volume of renewable fuel as specified in subparagraph (B). Regardless of the date of promulgation, such regulations shall contain compliance provisions for refiners, blenders, and importers, as appropriate, to ensure that the requirements of this section are met, but shall not restrict where renewables can be used, or impose any per-gallon obligation for the use of renewables. If the Administrator does not promulgate such regulations, the applicable percentage, on a volume percentage of gasoline basis, shall be 1.62 in 2004.

        `(B) APPLICABLE VOLUME-

          (i) CALENDAR YEARS 2004 THROUGH 2012- For the purpose of subparagraph (A), the applicable volume for any of calendar years 2004 through 2012 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

`Calendar year:

(In billions of gallons)

          2004

--2.3

          2005

--2.6

          2006

--2.9

          2007

--3.2

          2008

--3.5

          2009

--3.9

          2010

--4.3

          2011

--4.7

          2012

--5.0.

          `(ii) CALENDAR YEAR 2013 AND THEREAFTER- For the purpose of subparagraph (A), the applicable volume for calendar year 2013 and each calendar year thereafter shall be equal to the product obtained by multiplying--

            `(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

            `(II) the ratio that--

`(aa) 5.0 billion gallons of renewable fuels; bears to

`(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.

      `(3) APPLICABLE PERCENTAGES- Not later than October 31 of each calendar year, through 2011, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall by November 30 of each calendar year, through 2011, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, distributors and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refineries during the previous year.

      `(4) CELLULOSIC BIOMASS ETHANOL- For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

      `(5) CREDIT PROGRAM-

        `(A) IN GENERAL- The regulations promulgated to carry out this subsection shall provide for the generation of an appropriate amount of credits by any person that refines, blends, or imports gasoline that contains a quantity of renewable fuel that is greater than the quantity required under paragraph (2). Such regulations shall provide for the generation of an appropriate amount of credits for biodiesel fuel. If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

        `(B) USE OF CREDITS- A person that generates credits under subparagraph (A) may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with paragraph (2).

        `(C) LIFE OF CREDITS- A credit generated under this paragraph shall be valid to show compliance:

          (i) in the calendar year in which the credit was generated or the next calendar year, or

          (ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

        `(D) INABILITY TO PURCHASE SUFFICIENT CREDITS- The regulations promulgated to carry out this subsection shall include provisions allowing any person that is unable to generate or purchase sufficient credits to meet the requirements under paragraph (2) to carry forward a renewables deficit provided that, in the calendar year following the year in which the renewables deficit is created, such person shall achieve compliance with the renewables requirement under paragraph (2), and shall generate or purchase additional renewables credits to offset the renewables deficit of the previous year.

      `(6) SEASONAL VARIATIONS IN RENEWABLE FUEL USE-

        `(A) STUDY- For each of calendar years 2004 through 2012, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

        `(B) REGULATION OF EXCESSIVE SEASONAL VARIATIONS- If, for any calendar year, the Administrator of the Energy Information Administration, based on the study under subparagraph (A), makes the determinations specified in subparagraph (C), the Administrator shall promulgate regulations to ensure that 35 percent or more of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) is used during each of the periods specified in subparagraph (D) of each subsequent calendar year.

        `(C) DETERMINATIONS- The determinations referred to in subparagraph (B) are that--

          `(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during one of the periods specified in subparagraph (D) of the calendar year; and

          `(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years.

        `(D) PERIODS- The two periods referred to in this paragraph are--

          `(i) April through September; and

          `(ii) January through March and October through December.

        `(E) EXCLUSIONS- Renewable fuels blended or consumed in 2004 in a state which has received a waiver under section 209(b) shall not be included in the study in subparagraph (A).

      `(7) WAIVERS-

        `(A) IN GENERAL- The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may waive the requirement of paragraph (2) in whole or in part on petition by one or more States by reducing the national quantity of renewable fuel required under this subsection--

          `(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or

          `(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

        `(B) PETITIONS FOR WAIVERS- The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall approve or disapprove a State petition for a waiver of the requirement of paragraph (2) within 90 days after the date on which the petition is received by the Administrator.

        `(C) TERMINATION OF WAIVERS- A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture and the Secretary of Energy.

      `(8) STUDY AND WAIVER FOR INITIAL YEAR OF PROGRAM- Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2004, on a national, regional or state basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2004. This provision shall not be interpreted as limiting the Administrator's authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7), pertaining to waivers.

      `(9) SMALL REFINERIES-

        `(A) IN GENERAL- The requirement of paragraph (2) shall not apply to small refineries until January 1, 2008. Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

        `(B) ECONOMIC HARDSHIP-

          `(i) EXTENSION OF EXEMPTION- A small refinery may at any time petition the Administrator for an extension of the exemption from the requirement of paragraph (2) for the reason of disproportionate economic hardship. In evaluating a hardship petition, the Administrator, in consultation with the Secretary of Energy, shall consider the findings of the study in addition to other economic factors.

          `(ii) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

        `(C) CREDIT PROGRAM- If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

        `(D) OPT-IN FOR SMALL REFINERS- A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).

    (b) PENALTIES AND ENFORCEMENT- Section 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is amended--

      (1) in paragraph (1)--

        (A) in the first sentence, by striking `or (n)' each place it appears and inserting `(n) or (o)'; and

        (B) in the second sentence, by striking `or (m)' and inserting `(m), or (o)'; and

      (2) in the first sentence of paragraph (2), by striking `and (n)' each place it appears and inserting `(n), and (o)'.

    (c) EXCLUSION FROM ETHANOL WAIVER- Section 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is amended--

      (1) by redesignating paragraph (5) as paragraph (6); and

      (2) by inserting after paragraph (4) the following:

      `(5) EXCLUSION FROM ETHANOL WAIVER-

        `(A) PROMULGATION OF REGULATIONS- Upon notification, accompanied by supporting documentation, from the Governor of a State that the Reid vapor pressure limitation established by paragraph (4) will increase emissions that contribute to air pollution in any area in the State, the Administrator shall, by regulation, apply, in lieu of the Reid vapor pressure limitation established by paragraph (4), the Reid vapor pressure limitation established by paragraph (1) to all fuel blends containing gasoline and 10 percent denatured anhydrous ethanol that are sold, offered for sale, dispensed, supplied, offered for supply, transported or introduced into commerce in the area during the high ozone season.

        `(B) DEADLINE FOR PROMULGATION- The Administrator shall promulgate regulations under subparagraph (A) not later than 90 days after the date of receipt of a notification from a Governor under that subparagraph.

        `(C) EFFECTIVE DATE-

          `(i) IN GENERAL- With respect to an area in a State for which the Governor submits a notification under subparagraph (A), the regulations under that subparagraph shall take effect on the later of--

            `(I) the first day of the first high ozone season for the area that begins after the date of receipt of the notification; or

            `(II) 1 year after the date of receipt of the notification.

          `(ii) EXTENSION OF EFFECTIVE DATE BASED ON DETERMINATION OF INSUFFICIENT SUPPLY-

            `(I) IN GENERAL- If, after receipt of a notification with respect to an area from a Governor of a State under subparagraph (A), the Administrator determines, on the Administrator's own motion or on petition of any person and after consultation with the Secretary of Energy, that the promulgation of regulations described in subparagraph (A) would result in an insufficient supply of gasoline in the State, the Administrator, by regulation--

`(aa) shall extend the effective date of the regulations under clause (i) with respect to the area for not more than 1 year; and

`(bb) may renew the extension under item (aa) for two additional periods, each of which shall not exceed 1 year.

            `(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall act on any petition submitted under subclause (I) not later than 180 days after the date of receipt of the petition.'.

    (d) SURVEY OF RENEWABLE FUEL MARKET-

      (1) SURVEY AND REPORT- Not later than December 1, 2005, and annually thereafter, the Administrator shall--

        (A) conduct, with respect to each conventional gasoline use area and each reformulated gasoline use area in each State, a survey to determine the market shares of--

          (i) conventional gasoline containing ethanol;

          (ii) reformulated gasoline containing ethanol;

          (iii) conventional gasoline containing renewable fuel; and

          (iv) reformulated gasoline containing renewable fuel; and

        (B) submit to Congress, and make publicly available, a report on the results of the survey under subparagraph (A).

      (2) RECORDKEEPING AND REPORTING REQUIREMENTS- The Administrator may require any refiner, blender, or importer to keep such records and make such reports as are necessary to ensure that the survey conducted under paragraph (1) is accurate. The Administrator shall rely, to the extent practicable, on existing reporting and recordkeeping requirements to avoid duplicative requirements.

      (3) APPLICABLE LAW- Activities carried out under this subsection shall be conducted in a manner designed to protect confidentiality of individual responses.

    (e) RENEWABLE FUELS SAFE HARBOR-

      (1) IN GENERAL- Notwithstanding any other provision of federal or state law, no renewable fuel, as defined by this Act, used or intended to be used as a motor vehicle fuel, nor any motor vehicle fuel containing such renewable fuel, shall be deemed defective in design or manufacture by virtue of the fact that it is, or contains, such a renewable fuel, if it does not violate a control or prohibition imposed by the Administrator under section 211 of the Clean Air Act, as amended by this Act, and the manufacturer is in compliance with all requests for information under section 211(b) of the Clean Air Act, as amended by this Act. In the event that the safe harbor under this section does not apply, the existence of a design defect or manufacturing defect shall be determined under otherwise applicable law.

      (2) EXCEPTIONS- This subsection shall not apply to ethers.

      (3) EFFECTIVE DATE- This subsection shall be effective as of the date of enactment and shall apply with respect to all claims filed on or after that date.

SEC. 820A. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL PURCHASING REQUIREMENT.

    Title III of the Energy Policy Act of 1992 is amended by striking section 306 (42 U.S.C. 13215) and inserting the following:

`SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL PURCHASING REQUIREMENT.

    `(a) ETHANOL-BLENDED GASOLINE- The head of each Federal agency shall ensure that, in areas in which ethanol-blended gasoline is reasonably available at a generally competitive price, the Federal agency purchases ethanol-blended gasoline containing at least 10 percent ethanol rather than nonethanol-blended gasoline, for use in vehicles used by the agency that use gasoline.

    `(b) BIODIESEL-

      `(1) DEFINITION OF BIODIESEL- In this subsection, the term `biodiesel' has the meaning given the term in section 312(f).

      `(2) REQUIREMENT- The head of each Federal agency shall ensure that the Federal agency purchases, for use in fueling fleet vehicles that use diesel fuel used by the Federal agency at the location at which fleet vehicles of the Federal agency are centrally fueled, in areas in which the biodiesel-blended diesel fuel described in paragraphs (A) and (B) is available at a generally competitive price--

        `(A) as of the date that is 5 years after the date of enactment of this paragraph, biodiesel-blended diesel fuel that contains at least 2 percent biodiesel, rather than nonbiodiesel-blended diesel fuel; and

        `(B) as of the date that is 10 years after the date of enactment of this paragraph, biodiesel-blended diesel fuel that contains at least 20 percent biodiesel, rather than nonbiodiesel-blended diesel fuel.

      `(3) REQUIREMENT OF FEDERAL LAW- The provisions of this subsection shall not be considered a requirement of Federal law for the purposes of section 312.

    `(c) EXEMPTION- This section does not apply to fuel used in vehicles excluded from the definition of `fleet' by subparagraphs (A) through (H) of section 301(9).'.

SEC. 820B. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE LOAN GUARANTEE PROGRAM.

    (a) DEFINITION OF MUNICIPAL SOLID WASTE- In this section, the term `municipal solid waste' has the meaning given the term `solid waste' in section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).

    (b) ESTABLISHMENT OF PROGRAM- The Secretary of Energy shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the processing and conversion of municipal solid waste into fuel ethanol and other commercial byproducts.

    (c) REQUIREMENTS- The Secretary may provide a loan guarantee under subsection (b) to an applicant if--

      (1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (b);

      (2) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and

      (3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.

    (d) CRITERIA- In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that--

      (1) meet all applicable Federal and State permitting requirements;

      (2) are most likely to be successful; and

      (3) are located in local markets that have the greatest need for the facility because of--

        (A) the limited availability of land for waste disposal; or

        (B) a high level of demand for fuel ethanol or other commercial byproducts of the facility.

    (e) MATURITY- A loan guaranteed under subsection (b) shall have a maturity of not more than 20 years.

    (f) TERMS AND CONDITIONS- The loan agreement for a loan guaranteed under subsection (b) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.

    (g) ASSURANCE OF REPAYMENT- The Secretary shall require that an applicant for a loan guarantee under subsection (b) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.

    (h) GUARANTEE FEE- The recipient of a loan guarantee under subsection (b) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.

    (i) FULL FAITH AND CREDIT- The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.

    (j) REPORTS- Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress an report on the activities of the Secretary under this section.

    (k) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this section.

    (l) TERMINATION OF AUTHORITY- The authority of the Secretary to issue a loan guarantee under subsection (b) terminates on the date that is 10 years after the date of enactment of this Act.

Subtitle B--Additional Fuel Efficiency Measures

SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF AUTOMOBILES.

    Section 32917 of title 49, United States Code, is amended to read as follows:

`Sec. 32917. Standards for executive agency automobiles

    `(a) BASELINE AVERAGE FUEL ECONOMY- The head of each executive agency shall determine, for all automobiles in the agency's fleet of automobiles that were leased or bought as a new vehicle in fiscal year 1999, the average fuel economy for such automobiles. For the purposes of this section, the average fuel economy so determined shall be the baseline average fuel economy for the agency's fleet of automobiles.

    `(b) INCREASE OF AVERAGE FUEL ECONOMY- The head of an executive agency shall manage the procurement of automobiles for that agency in such a manner that--

      `(1) not later than September 30, 2003, the average fuel economy of the new automobiles in the agency's fleet of automobiles is not less than 1 mile per gallon higher than the baseline average fuel economy determined under subsection (a) for that fleet; and

      `(2) not later than September 30, 2005, the average fuel economy of the new automobiles in the agency's fleet of automobiles is not less than 3 miles per gallon higher than the baseline average fuel economy determined under subsection (a) for that fleet.

    `(c) CALCULATION OF AVERAGE FUEL ECONOMY- Average fuel economy shall be calculated for the purposes of this section in accordance with guidance which the Secretary of Transportation shall prescribe for the implementation of this section.

    `(d) DEFINITIONS- In this section:

      `(1) The term `automobile' does not include any vehicle designed for combat-related missions, law enforcement work, or emergency rescue work.

      `(2) The term `executive agency' has the meaning given that term in section 105 of title 5.

      `(3) The term `new automobile', with respect to the fleet of automobiles of an executive agency, means an automobile that is leased for at least 60 consecutive days or bought, by or for the agency, after September 30, 1999.'.

SEC. 822. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VEHICLES.

    Title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.) is amended by adding at the end the following:

`PART K--REDUCING TRUCK IDLING

`SEC. 400AAA. REDUCING TRUCK IDLING.

    `(a) STUDY- Not later than 18 months after the date of enactment of this section, the Secretary shall, in consultation with the Secretary of Transportation, commence a study to analyze the potential fuel savings resulting from long duration idling of main drive engines in heavy-duty vehicles.

    `(b) REGULATIONS- Upon completion of the study under subsection (a), the Secretary may issue regulations requiring the installation of idling reduction systems on all newly manufactured heavy-duty vehicles.

    `(c) DEFINITIONS- As used in this section:

      `(1) The term `heavy-duty vehicle' means a vehicle that has a gross vehicle weight rating greater than 8,500 pounds and is powered by a diesel engine.

      `(2) The term `idling reduction system' means a device or system of devices used to reduce long duration idling of a diesel engine in a vehicle.

      `(3) The term `long duration idling' means the operation of a main drive engine of a heavy-duty vehicle for a period of more than 15 consecutive minutes when the main drive engine is not engaged in gear, except that such term does not include idling as a result of traffic congestion or other impediments to the movement of a heavy-duty vehicle.

      `(4) The term `vehicle' has the meaning given such term in section 4 of title 1, United States Code.'.

SEC. 823. CONSERVE BY BICYCLING PROGRAM.

    (a) ESTABLISHMENT- The Secretary of Transportation shall establish a Conserve By Bicycling pilot program that shall provide for up to 10 geographically dispersed projects to encourage the use of bicycles in place of motor vehicles. Such projects shall use education and marketing to convert motor vehicle trips to bike trips, document project results and energy savings, and facilitate partnerships among entities in the fields of transportation, law enforcement, education, public health, environment, or energy. At least 20 percent of the cost of each project shall be provided from State or local sources. Not later than 2 years after implementation of the projects, the Secretary of Transportation shall submit a report to Congress on the results of the pilot program.

    (b) NATIONAL ACADEMY STUDY- The Secretary of Transportation shall contract with the National Academy of Sciences to conduct a study on the feasibility and benefits of converting motor vehicle trips to bicycle trips and to issue a report, not later than 2 years after enactment of this Act, on the findings of such study.

    (c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Secretary of' Transportation $5,500,000, to remain available until expended, to carry out the pilot program and study pursuant to this section.

SEC. 824. FUEL CELL VEHICLE PROGRAM.

    Not later than 1 year from date of enactment of this section, the Secretary shall develop a program with timetables for developing technologies to enable at least 100,000 hydrogen-fueled fuel cell vehicles to be available for sale in the United States by 2010 and at least 2.5 million of such vehicles to be available by 2020 and annually thereafter. The program shall also include timetables for development of technologies to provide 50 million gasoline equivalent gallons of hydrogen for sale in fueling stations in the United States by 2010 and at least 2.5 billion gasoline equivalent gallons by 2020 and annually thereafter. The Secretary shall annually include a review of the progress toward meeting the vehicle sales of Energy budget.

Subtitle C--Federal Reformulated Fuels

SEC. 831. SHORT TITLE.

    This subtitle may be cited as the `Federal Reformulated Fuels Act of 2002'.

SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.

    (a) USE OF LUST FUNDS FOR REMEDIATION OF CONTAMINATION FROM ETHER FUEL ADDITIVES- Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 6991b(h)) is amended--

      (1) in paragraph (7)(A)--

        (A) by striking `paragraphs (1) and (2) of this subsection' and inserting `paragraphs (1), (2), and (12)'; and

        (B) by inserting `and section 9010' before `if'; and

      (2) by adding at the end the following:

      `(12) REMEDIATION OF CONTAMINATION FROM ETHER FUEL ADDITIVES-

        `(A) IN GENERAL- The Administrator and the States may use funds made available under section 9013(1) to carry out corrective actions with respect to a release of methyl tertiary butyl ether or other ether fuel additive that presents a threat to human health, welfare, or the environment.

        `(B) APPLICABLE AUTHORITY- Subparagraph (A) shall be carried out--

          `(i) in accordance with paragraph (2), except that a release with respect to which a corrective action is carried out under subparagraph (A) shall not be required to be from an underground storage tank; and

          `(ii) in the case of a State, in accordance with a cooperative agreement entered into by the Administrator and the State under paragraph (7).'.

    (b) RELEASE PREVENTION AND COMPLIANCE- Subtitle I of the Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking section 9010 and inserting the following:

`SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

    `Funds made available under section 9013(2) from the Leaking Underground Storage Tank Trust Fund may be used for conducting inspections, or for issuing orders or bringing actions under this subtitle--

      `(1) by a State (pursuant to section 9003(h)(7)) acting under--

        `(A) a program approved under section 9004; or

        `(B) State requirements regulating underground storage tanks that are similar or identical to this subtitle, as determined by the Administrator; and

      `(2) by the Administrator, acting under this subtitle or a State program approved under section 9004.

`SEC. 9011. BEDROCK BIOREMEDIATION.

    `The Administrator shall establish, at an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) with established expertise in bioremediation of contaminated bedrock aquifers, a resource center--

      `(1) to conduct research concerning bioremediation of methyl tertiary butyl ether in contaminated underground aquifers, including contaminated bedrock; and

      `(2) to provide for States a technical assistance clearinghouse for information concerning innovative technologies for bioremediation described in paragraph (1).

`SEC. 9012. SOIL REMEDIATION.

    `The Administrator may establish a program to conduct research concerning remediation of methyl tertiary butyl ether contamination of soil, including granitic or volcanic soil.

`SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.

    `In addition to amounts made available under section 2007(f), there are authorized to be appropriated from the Leaking Underground Storage Tank Trust Fund, notwithstanding section 9508(c)(1) of the Internal Revenue Code of 1986--

      `(1) to carry out section 9003(h)(12), $200,000,000 for fiscal year 2003, to remain available until expended;

      `(2) to carry out section 9010--

        `(A) $50,000,000 for fiscal year 2003; and

        `(B) $30,000,000 for each of fiscal years 2004 through 2008;

      `(3) to carry out section 9011--

        `(A) $500,000 for fiscal year 2003; and

        `(B) $300,000 for each of fiscal years 2004 through 2008; and

      `(4) to carry out section 9012--

        `(A) $100,000 for fiscal year 2003; and

        `(B) $50,000 for each of fiscal years 2004 through 2008.

    (c) TECHNICAL AMENDMENTS- (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 6901) is amended by striking the item relating to section 9010 and inserting the following:

      `Sec. 9010. Release prevention and compliance.

      `Sec. 9011. Bedrock bioremediation.

      `Sec. 9012. Soil remediation.

      `Sec. 9013. Authorization of appropriations.'.

    (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking `sustances' and inserting `substances'.

    (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking `subsection (c) and (d) of this section' and inserting `subsections (c) and (d)'.

    (4) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the second sentence by striking `referred to' and all that follows and inserting `referred to in subparagraph (A) or (B), or both, of section 9001(2).'.

    (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended--

      (A) in subsection (a), by striking `study taking' and inserting `study, taking';

      (B) in subsection (b)(1), by striking `relevent' and inserting `relevant'; and

      (C) in subsection (b)(4), by striking `Evironmental' and inserting `Environmental'.

SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.

    (a) FINDINGS- Congress finds that--

      (1) since 1979, methyl tertiary butyl ether (referred to in this section as `MTBE') has been used nationwide at low levels in gasoline to replace lead as an octane booster or anti-knocking agent;

      (2) Public Law 101-549 (commonly known as the `Clean Air Act Amendments of 1990') (42 U.S.C. 7401 et seq.) established a fuel oxygenate standard under which reformulated gasoline must contain at least 2 percent oxygen by weight;

      (3) at the time of the adoption of the fuel oxygen standard, Congress was aware that significant use of MTBE could result from the adoption of that standard, and that the use of MTBE would likely be important to the cost-effective implementation of that program;

      (4) Congress is aware that gasoline and its component additives have leaked from storage tanks, with consequences for water quality;

      (5) the fuel industry responded to the fuel oxygenate standard established by Public Law 101-549 by making substantial investments in--

        (A) MTBE production capacity; and

        (B) systems to deliver MTBE-containing gasoline to the marketplace;

      (6) when leaked or spilled into the environment, MTBE may cause serious problems of drinking water quality;

      (7) in recent years, MTBE has been detected in water sources throughout the United States;

      (8) MTBE can be detected by smell and taste at low concentrations;

      (9) while small quantities of MTBE can render water supplies unpalatable, the precise human health effects of MTBE consumption at low levels are yet unknown;

      (10) in the report entitled `Achieving Clean Air and Clean Water: The Report of the Blue Ribbon Panel on Oxygenates in Gasoline' and dated September 1999, Congress was urged--

        (A) to eliminate the fuel oxygenate standard;

        (B) to greatly reduce use of MTBE; and

        (C) to maintain the environmental performance of reformulated gasoline;

      (11) Congress has--

        (A) reconsidered the relative value of MTBE in gasoline; and

        (B) decided to eliminate use of MTBE as a fuel additive;

      (12) the timeline for elimination of use of MTBE as a fuel additive must be established in a manner that achieves an appropriate balance among the goals of--

        (A) environmental protection;

        (B) adequate energy supply; and

        (C) reasonable fuel prices; and

      (13) it is appropriate for Congress to provide some limited transition assistance--

        (A) to merchant producers of MTBE who produced MTBE in response to a market created by the oxygenate requirement contained in the Clean Air Act; and

        (B) for the purpose of mitigating any fuel supply problems that may result from elimination of a widely-used fuel additive.

    (b) PURPOSES- The purposes of this section are--

      (1) to eliminate use of MTBE as a fuel oxygenate; and

      (2) to provide assistance to merchant producers of MTBE in making the transition from producing MTBE to producing other fuel additives.

    (c) AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS- Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended--

      (1) in paragraph (1)(A)--

        (A) by inserting `fuel or fuel additive or' after `Administrator any'; and

        (B) by striking `air pollution which' and inserting `air pollution, or water pollution, that';

      (2) in paragraph (4)(B), by inserting `or water quality protection,' after `emission control,'; and

      (3) by adding at the end the following:

      `(5) Prohibition on use of mtbe-

        `(A) IN GENERAL- Subject to subparagraph (E), not later than 4 years after the date of enactment of this paragraph, the use of methyl tertiary butyl ether in motor vehicle fuel in any State other than a State described in subparagraph (C) is prohibited.

        `(B) REGULATIONS- The Administrator shall promulgate regulations to effect the prohibition in subparagraph (A).

        `(C) STATES THAT AUTHORIZE USE- A State described in this subparagraph is a State that submits to the Administrator a notice that the State authorizes use of methyl tertiary butyl ether in motor vehicle fuel sold or used in the State.

        `(D) PUBLICATION OF NOTICE- The Administrator shall publish in the Federal Register each notice submitted by a State under subparagraph (C).

        `(E) TRACE QUANTITIES- In carrying out subparagraph (A), the Administrator may allow trace quantities of methyl tertiary butyl ether, not to exceed 0.5 percent by volume, to be present in motor vehicle fuel in cases that the Administrator determines to be appropriate.

      `(6) MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE-

        `(A) IN GENERAL-

          `(i) GRANTS- The Secretary of Energy, in consultation with the Administrator, may make grants to merchant producers of methyl tertiary butyl ether in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of iso-octane and alkylates.

          `(ii) Determination- The Administrator, in consultation with the Secretary of Energy, may determine that transition assistance for the production of iso-octane and alkylates is inconsistent with the provisions of subparagraph (B) and, on that basis, may deny applications for grants authorized by this provision.

        `(B) FURTHER GRANTS- The Secretary of Energy, in consultation with the Administrator, may also further make grants to merchant producers of MTBE in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of such other fuel additives that, consistent with 211(c)--

          `(i) unless the Administrator determines that such fuel additives may reasonably be anticipated to endanger public health or the environment;

          `(ii) have been registered and have been tested or are being tested in accordance with the requirements of this section; and

          `(iii) will contribute to replacing gasoline volumes lost as a result of paragraph (5).

        `(C) Eligible production facilities- A production facility shall be eligible to receive a grant under this paragraph if the production facility--

          `(i) is located in the United States; and

          `(ii) produced methyl tertiary butyl ether for consumption in nonattainment areas during the period--

            `(I) beginning on the date of enactment of this paragraph; and

            `(II) ending on the effective date of the prohibition on the use of methyl tertiary butyl ether under paragraph (5).

        `(D) Authorization of appropriations- There is authorized to be appropriated to carry out this paragraph $250,000,000 for each of fiscal years 2003 through 2005.'.

    (d) No Effect on Law Concerning State Authority- The amendments made by subsection (c) have no effect on the law in effect on the day before the date of enactment of this Act regarding the authority of States to limit the use of methyl tertiary butyl ether in motor vehicle fuel.

SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED GASOLINE.

    (a) Elimination-

      (1) In general- Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended--

        (A) in paragraph (2)--

          (i) in the second sentence of subparagraph (A), by striking `(including the oxygen content requirement contained in subparagraph (B))';

          (ii) by striking subparagraph (B); and

          (iii) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively;

        (B) in paragraph (3)(A), by striking clause (v);

        (C) in paragraph (7)--

          (i) in subparagraph (A)--

            (I) by striking clause (i); and

            (II) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

          (ii) in subparagraph (C)--

            (I) by striking clause (ii); and

            (II) by redesignating clause (iii) as clause (ii); and

      (2) Effective date- The amendments made by paragraph (1) take effect 270 days after the date of enactment of this Act, except that such amendments shall take effect upon enactment in any State that has received a waiver under section 209(b) of the Clean Air Act.

    (b) Maintenance of Toxic Air Pollutant Emission Reductions- Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is amended--

      (1) by striking `Within 1 year after the enactment of the Clean Air Act Amendments of 1990,' and inserting the following:

        `(A) In general- Not later than November 15, 1991,'; and

      (2) by adding at the end the following:

        `(B) Maintenance of toxic air pollutant emissions reductions from reformulated gasoline-

          `(i) Definitions- In this subparagraph the term `PADD' means a Petroleum Administration for Defense District.

          `(ii) Regulations regarding emissions of toxic air pollutants- Not later than 270 days after the date of enactment of this subparagraph, the Administrator shall establish, for each refinery or importer (other than a refinery or importer in a State that has received a waiver under section 209(b) with regard to gasoline produced for use in that state), standards for toxic air pollutants from use of the reformulated gasoline produced or distributed by the refinery or importer that maintain the reduction of the average annual aggregate emissions of toxic air pollutants for reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000, determined on the basis of data collected by the Administrator with respect to the refinery or importer.

          (iii) Standards applicable to specific refineries or importers-

            `(I) Applicability of standards- For any calendar year, the standards applicable to a refinery or importer under clause (ii) shall apply to the quantity of gasoline produced or distributed by the refinery or importer in the calendar year only to the extent that the quantity is less than or equal to the average annual quantity of reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000.

            `(II) Applicability of other standards- For any calendar year, the quantity of gasoline produced or distributed by a refinery or importer that is in excess of the quantity subject to subclause (I) shall be subject to standards for toxic air pollutants promulgated under subparagraph (A) and paragraph (3)(B).

          `(iv) Credit program- The Administrator shall provide for the granting and use of credits for emissions of toxic air pollutants in the same manner as provided in paragraph (7).

          `(v) Regional protection of toxics reduction baselines-

            `(I) In general- Not later than 60 days after the date of enactment of this subparagraph, and not later than April 1 of each calendar year that begins after that date of enactment, the Administrator shall publish in the Federal Register a report that specifies, with respect to the previous calendar year--

`(aa) the quantity of reformulated gasoline produced that is in excess of the average annual quantity of reformulated gasoline produced in 1999 and 2000; and

`(bb) the reduction of the average annual aggregate emissions of toxic air pollutants in each PADD, based on retail survey data or data from other appropriate sources.

            `(II) Effect of failure to maintain aggregate toxics reductions- If, in any calendar year, the reduction of the average annual aggregate emissions of toxic air pollutants in a PADD fails to meet or exceed the reduction of the average annual aggregate emissions of toxic air pollutants in the PADD in calendar years 1999 and 2000, the Administrator, not later than 90 days after the date of publication of the report for the calendar year under subclause (I), shall--

`(aa) identify, to the maximum extent practicable, the reasons for the failure, including the sources, volumes, and characteristics of reformulated gasoline that contributed to the failure; and

`(bb) promulgate revisions to the regulations promulgated under clause (ii), to take effect not earlier than 180 days but not later than 270 days after the date of promulgation, to provide that, notwithstanding clause (iii)(II), all reformulated gasoline produced or distributed at each refinery or importer shall meet the standards applicable under clause (iii) not later than April 1 of the year following the report in subclause (II) and for subsequent years.

          `(vi) Regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels- Not later than July 1, 2004, the Administrator shall promulgate final regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels, as provided for in section 80.1045 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subparagraph).'.

    (c) Consolidation in Reformulated Gasoline Regulations- Not later than 180 days after the date of enactment of this Act, the Administrator shall revise the reformulated gasoline regulations under subpart D of part 80 of title 40, Code of Federal Regulations, to consolidate the regulations applicable to VOC-Control Regions 1 and 2 under section 80.41 of that title by eliminating the less stringent requirements applicable to gasoline designated for VOC-Control Region 2 and instead applying the more stringent requirements applicable to gasoline designated for VOC-Control Region 1.

    (d) Savings Clause- Nothing in this section is intended to affect or prejudice any legal claims or actions with respect to regulations promulgated by the Administrator prior to enactment of this Act regarding emissions of toxic air pollutants from motor vehicles.

    (e) Determination Regarding a State Petition- Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended by inserting after paragraph (10) the following:

      `(11) Determination regarding a state petition-

        `(A) In general- Notwithstanding any other provision of this section, not less than 30 days after enactment of this paragraph the Administrator must determine the adequacy of any petition received from a Governor of a State to exempt gasoline sold in that State from the requirements of paragraph (2)(B).

        `(B) APPROVAL- If the determination in (A) is not made within thirty days of enactment of this paragraph, the petition shall be deemed approved.'.

SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is amended--

      (1) in paragraph (2)--

        (A) by striking `may also' and inserting `shall, on a regular basis,'; and

        (B) by striking subparagraph (A) and inserting the following:

        `(A) to conduct tests to determine potential public health and environmental effects of the fuel or additive (including carcinogenic, teratogenic, or mutagenic effects); and'; and

      (2) by adding at the end the following:

      `(4) STUDY ON CERTAIN FUEL ADDITIVES AND BLENDSTOCKS-

        `(A) IN GENERAL- Not later than 2 years after the date of enactment of this paragraph, the Administrator shall--

          `(i) conduct a study on the effects on public health, air quality, and water resources of increased use of, and the feasibility of using as substitutes for methyl tertiary butyl ether in gasoline--

            `(I) ethyl tertiary butyl ether;

            `(II) tertiary amyl methyl ether;

            `(III) di-isopropyl ether;

            `(IV) tertiary butyl alcohol;

            `(V) other ethers and heavy alcohols, as determined by then Administrator;

            `(VI) ethanol;

            `(VII) iso-octane; and

            `(VIII) alkylates; and

          `(ii) conduct a study on the effects on public health, air quality, and water resources of the adjustment for ethanol-blended reformulated gasoline to the VOC performance requirements otherwise applicable under sections 211(k)(1) and 211(k)(3) of the Clean Air Act.

          `(iii) submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of these studies.

        `(B) CONTRACTS FOR STUDY- In carrying out this paragraph, the Administrator may enter into one or more contracts with nongovernmental entities including but not limited to National Energy Laboratories and institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)).'.

SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by section 820(a)) is amended by inserting after subsection (o) the following:

    `(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES AND EMISSIONS MODEL-

      `(1) ANTI-BACKSLIDING ANALYSIS-

        `(A) DRAFT ANALYSIS- Not later than 4 years after the date of enactment of this paragraph, the Administrator shall publish for public comment a draft analysis of the changes in emissions of air pollutants and air quality due to the use of motor vehicle fuel and fuel additives resulting from implementation of the amendments made by the Federal Reformulated Fuels Act of 2002.

        `(B) FINAL ANALYSIS- After providing a reasonable opportunity for comment but not later than 5 years after the date of enactment of this paragraph, the Administrator shall publish the analysis in final form.

      `(2) EMISSIONS MODEL- For the purposes of this subsection, as soon as the necessary data are available, the Administrator shall develop and finalize an emissions model that reasonably reflects the effects of gasoline characteristics or components on emissions from vehicles in the motor vehicle fleet during calendar year 2005.'.

SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is amended--

      (1) by striking `(6) OPT-IN AREAS- (A) Upon' and inserting the following:

      `(6) OPT-IN AREAS-

        `(A) CLASSIFIED AREAS-

          `(i) IN GENERAL- Upon';

      (2) in subparagraph (B), by striking `(B) If' and inserting the following:

          `(ii) EFFECT OF INSUFFICIENT DOMESTIC CAPACITY TO PRODUCE REFORMULATED GASOLINE- If';

      (3) in subparagraph (A)(ii) (as redesignated by paragraph (2))--

        (A) in the first sentence, by striking `subparagraph (A)' and inserting `clause (i)'; and

        (B) in the second sentence, by striking `this paragraph' and inserting `this subparagraph'; and

      (4) by adding at the end the following:

        `(B) OZONE TRANSPORT REGION-

          `(i) APPLICATION OF PROHIBITION-

            `(I) IN GENERAL- In addition to the provisions of subparagraph (A), upon the application of the Governor of a State in the ozone transport region established by section 184(a), the Administrator, not later than 180 days after the date of receipt of the application, shall apply the prohibition specified in paragraph (5) to any area in the State (other than an area classified as a marginal, moderate, serious, or severe ozone nonattainment area under subpart 2 of part D of title I) unless the Administrator determines under clause (iii) that there is insufficient capacity to supply reformulated gasoline.

            `(II) PUBLICATION OF APPLICATION- As soon as practicable after the date of receipt of an application under subclause (I), the Administrator shall publish the application in the Federal Register.

          `(ii) PERIOD OF APPLICABILITY- Under clause (i), the prohibition specified in paragraph (5) shall apply in a State--

            `(I) commencing as soon as practicable but not later than 2 years after the date of approval by the Administrator of the application of the Governor of the State; and

            `(II) ending not earlier than 4 years after the commencement date determined under subclause (I).

          `(iii) EXTENSION OF COMMENCEMENT DATE BASED ON INSUFFICIENT CAPACITY-

            `(I) IN GENERAL- If, after receipt of an application from a Governor of a State under clause (i), the Administrator determines, on the Administrator's own motion or on petition of any person, after consultation with the Secretary of Energy, that there is insufficient capacity to supply reformulated gasoline, the Administrator, by regulation--

`(aa) shall extend the commencement date with respect to the State under clause (ii)(I) for not more than 1 year; and

`(bb) may renew the extension under item (aa) for two additional periods, each of which shall not exceed 1 year.

            `(II) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall act on any petition submitted under subclause (I) not later than 180 days after the date of receipt of the petition.'.

SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended--

      (1) by striking `(C) A State' and inserting the following:

        `(C) AUTHORITY OF STATE TO CONTROL FUELS AND FUEL ADDITIVES FOR REASONS OF NECESSITY-

          `(i) IN GENERAL- A State'; and

      (2) by adding at the end the following:

          `(ii) ENFORCEMENT BY THE ADMINISTRATOR- In any case in which a State prescribes and enforces a control or prohibition under clause (i), the Administrator, at the request of the State, shall enforce the control or prohibition as if the control or prohibition had been adopted under the other provisions of this section.'.

SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) STUDY-

      (1) IN GENERAL- The Administrator of the Environmental Protection Agency and the Secretary of Energy shall jointly conduct a study of Federal, State, and local requirements concerning motor vehicle fuels, including--

        (A) requirements relating to reformulated gasoline, volatility (measured in Reid vapor pressure), oxygenated fuel, and diesel fuel; and

        (B) other requirements that vary from State to State, region to region, or locality to locality.

      (2) REQUIRED ELEMENTS- The study shall assess--

        (A) the effect of the variety of requirements described in paragraph (1) on the supply, quality, and price of motor vehicle fuels available to the consumer;

        (B) the effect of the requirements described in paragraph (1) on achievement of--

          (i) national, regional, and local air quality standards and goals; and

          (ii) related environmental and public health protection standards and goals;

        (C) the effect of Federal, State, and local motor vehicle fuel regulations, including multiple motor vehicle fuel requirements, on--

          (i) domestic refineries;

          (ii) the fuel distribution system; and

          (iii) industry investment in new capacity;

        (D) the effect of the requirements described in paragraph (1) on emissions from vehicles, refineries, and fuel handling facilities;

        (E) the feasibility of developing national or regional motor vehicle fuel slates for the 48 contiguous States that, while protecting and improving air quality at the national, regional, and local levels, could--

          (i) enhance flexibility in the fuel distribution infrastructure and improve fuel fungibility;

          (ii) reduce price volatility and costs to consumers and producers;

          (iii) provide increased liquidity to the gasoline market; and

          (iv) enhance fuel quality, consistency, and supply; and

        (F) the feasibility of providing incentives, and the need for the development of national standards necessary, to promote cleaner burning motor vehicle fuel.

    (b) REPORT-

      (1) IN GENERAL- Not later than June 1, 2006, the Administrator of the Environmental Protection Agency and the Secretary of Energy shall submit to Congress a report on the results of the study conducted under subsection (a).

      (2) RECOMMENDATIONS-

        (A) IN GENERAL- The report shall contain recommendations for legislative and administrative actions that may be taken--

          (i) to improve air quality;

          (ii) to reduce costs to consumers and producers; and

          (iii) to increase supply liquidity.

        (B) REQUIRED CONSIDERATIONS- The recommendations under subparagraph (A) shall take into account the need to provide advance notice of required modifications to refinery and fuel distribution systems in order to ensure an adequate supply of motor vehicle fuel in all States.

      (3) CONSULTATION- In developing the report, the Administrator of the Environmental Protection Agency and the Secretary of Energy shall consult with--

        (A) the Governors of the States;

        (B) automobile manufacturers;

        (C) motor vehicle fuel producers and distributors; and

        (D) the public.

SEC. 840. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING TO USE OF RECYCLED PRODUCTS AND FLEET AND TRANSPORTATION EFFICIENCY.

    Not later than 180 days after the date of enactment of this Act, the Administrator of General Services shall submit to Congress a report that details efforts by each Federal agency to implement the procurement policies specified in Executive Order No. 13101 (63 Fed. Reg. 49643; relating to governmental use of recycled products) and Executive Order No. 13149 (65 Fed. Reg. 24607; relating to Federal fleet and transportation efficiency).

TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

Subtitle A--Low Income Assistance and State Energy Programs

SEC. 901. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION ASSISTANCE, AND STATE ENERGY GRANTS.

    (a) LIHEAP- (1) Section 2602(b) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking the first sentence and inserting the following: `There are authorized to be appropriated to carry out the provisions of this title (other than section 2607A), $3,400,000,000 for each of fiscal years 2003 through 2005.'.

    (2) Section 2602(e) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(e)) is amended by striking `$600,000,000' and inserting `$1,000,000,000'.

    (3) Section 2609A(a) of the Low-Income Energy Assistance Act of 1981 (42 U.S.C. 8628a(a)) is amended by striking `not more than $300,000' and inserting: `not more than $750,000'.

    (b) WEATHERIZATION ASSISTANCE- Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended by striking `for fiscal years 1999 through 2003 such sums as may be necessary.' and inserting: `$325,000,000 for fiscal year 2003, $400,000,000 for fiscal year 2004, and $500,000,000 for fiscal year 2005.'.

SEC. 902. STATE ENERGY PROGRAMS.

    (a) STATE ENERGY CONSERVATION PLANS- Section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322)) is amended by adding at the end the following:

    `(g) The Secretary shall, at least once every 3 years, invite the Governor of each State to review and, if necessary, revise the energy conservation plan of the State submitted under subsection (b) or (e). Such reviews should consider the energy conservation plans of other States within the region, and identify opportunities and actions that may be carried out in pursuit of common energy conservation goals.'.

    (b) STATE ENERGY CONSERVATION GOALS- Section 364 of the Energy Policy and Conservation Act (42 U.S.C. 6324) is amended to read as follows:

    `SEC. 364. Each State energy conservation plan with respect to which assistance is made available under this part on or after the date of enactment of the Energy Policy Act of 2002 shall contain a goal, consisting of an improvement of 25 percent or more in the efficiency of use of energy in the State concerned in calendar year 2010 as compared to calendar year 1990, and may contain interim goals.'.

    (c) STATE ENERGY CONSERVATION GRANTS- Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking `for fiscal years 1999 through 2003 such sums as may be necessary.' and inserting: `$100,000,000 for each of fiscal years 2003 and 2004; $125,000,000 for fiscal year 2005; and such sums as may be necessary for each fiscal year thereafter.'.

SEC. 903. ENERGY EFFICIENT SCHOOLS.

    (a) ESTABLISHMENT- There is established in the Department of Energy the High Performance Schools Program (in this section referred to as the `Program').

    (b) GRANTS- The Secretary of Energy may make grants to a State energy office--

      (1) to assist school districts in the State to improve the energy efficiency of school buildings;

      (2) to administer the Program; and

      (3) to promote participation in the Program.

    (c) GRANTS TO ASSIST SCHOOL DISTRICTS- The Secretary shall condition grants under subsection (b)(1) on the State energy office using the grants to assist school districts that have demonstrated--

      (1) a need for the grants to build additional school buildings to meet increasing elementary or secondary enrollments or to renovate existing school buildings; and

      (2) a commitment to use the grant funds to develop high performance school buildings in accordance with a plan that the State energy office, in consultation with the State educational agency, has determined is feasible and appropriate to achieve the purposes for which the grant is made.

    (d) GRANTS FOR ADMINISTRATION- Grants under subsection (b)(2) shall be used to--

      (1) evaluate compliance by school districts with requirements of this section;

      (2) distribute information and materials to clearly define and promote the development of high performance school buildings for both new and existing facilities;

      (3) organize and conduct programs for school board members, school personnel, architects, engineers, and others to advance the concepts of high performance school buildings;

      (4) obtain technical services and assistance in planning and designing high performance school buildings; or

      (5) collect and monitor data and information pertaining to the high performance school building projects.

    (e) GRANTS TO PROMOTE PARTICIPATION- Grants under subsection (b)(3) shall be used for promotional and marketing activities, including facilitating private and public financing, promoting the use of energy savings performance contracts, working with school administrations, students, and communities, and coordinating public benefit programs.

    (f) SUPPLEMENTING GRANT FUNDS- The State energy office shall encourage qualifying school districts to supplement funds awarded pursuant to this section with funds from other sources in the implementation of their plans.

    (g) ALLOCATIONS- Except as provided in subsection (h), funds appropriated to carry out this section shall be allocated as follows:

      (1) 70 percent shall be used to make grants under subsection (b)(1).

      (2) 15 percent shall be used to make grants under subsection (b)(2).

      (3) 15 percent shall be used to make grants under subsection (b)(3).

    (h) OTHER FUNDS- The Secretary of Energy may retain an amount, not to exceed $300,000 per year, to assist State energy offices in coordinating and implementing the Program. Such funds may be used to develop reference materials to further define the principles and criteria to achieve high performance school buildings.

    (i) AUTHORIZATION OF APPROPRIATIONS- For grants under subsection (b) there are authorized to be appropriated--

      (1) $200,000,000 for fiscal year 2003;

      (2) $210,000,000 for fiscal year 2004;

      (3) $220,000,000 for fiscal year 2005;

      (4) $230,000,000 for fiscal year 2006; and

      (5) such sums as may be necessary for fiscal year 2007 and each fiscal year thereafter through fiscal year 2012.

    (j) DEFINITIONS- For purposes of this section:

      (1) HIGH PERFORMANCE SCHOOL BUILDING- The term `high performance school building' means a school building that, in its design, construction, operation, and maintenance--

        (A) maximizes use of renewable energy and energy-efficient technologies and systems;

        (B) is cost-effective on a life-cycle basis;

        (C) achieves either--

          (i) the applicable Energy Star building energy performance ratings; or

          (ii) energy consumption levels at least 30 percent below those of the most recent version of ASHRAE Standard 90.1;

        (D) uses affordable, environmentally preferable, and durable materials;

        (E) enhances indoor environmental quality;

        (F) protects and conserves water; and

        (G) optimizes site potential.

      (2) RENEWABLE ENERGY- The term `renewable energy' means energy produced by solar, wind, biomass, ocean, geothermal, or hydroelectric power.

      (3) SCHOOL- The term `school' means--

        (A) an `elementary school' as that term is defined in section 14101(14) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801(14)),

        (B) a `secondary school' as that term is defined in section 14101(25) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801(25)), or

        (C) an elementary or secondary Indian school funded by the Bureau of Indian Affairs.

      (4) STATE EDUCATIONAL AGENCY- The term `State educational agency' has the same meaning given such term in section 14101(28) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801(28)).

      (5) STATE ENERGY OFFICE- The term `State energy office' means the State agency responsible for developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), or, if no such agency exists, a State agency designated by the Governor of the State.

SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) GRANTS- The Secretary of Energy is authorized to make grants to units of local government, private, non-profit community development organizations, and Indian tribe economic development entities to improve energy efficiency, identify and develop alternative renewable and distributed energy supplies, and increase energy conservation in low income rural and urban communities.

    (b) PURPOSE OF GRANTS- The Secretary may make grants on a competitive basis for--

      (1) investments that develop alternative renewable and distributed energy supplies;

      (2) energy efficiency projects and energy conservation programs;

      (3) studies and other activities that improve energy efficiency in low income rural and urban communities;

      (4) planning and development assistance for increasing the energy efficiency of buildings and facilities; and

      (5) technical and financial assistance to local government and private entities on developing new renewable and distributed sources of power or combined heat and power generation.

    (c) DEFINITION- For purposes of this section, the term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

    (d) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section there are authorized to be appropriated to the Secretary of Energy an amount not to exceed $20,000,000 for fiscal year 2003 and each fiscal year thereafter through fiscal year 2005.

SEC. 905. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) DEFINITIONS- In this section:

      (1) ELIGIBLE STATE- The term `eligible State' means a State that meets the requirements of subsection (b).

      (2) ENERGY STAR PROGRAM- The term `Energy Star program' means the program established by section 324A of the Energy Policy and Conservation Act.

      (3) RESIDENTIAL ENERGY STAR PRODUCT- The term `residential Energy Star product' means a product for a residence that is rated for energy efficiency under the Energy Star program.

      (4) STATE ENERGY OFFICE- The term `State energy office' means the State agency responsible for developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322).

      (5) STATE PROGRAM- The term `State program' means a State energy efficient appliance rebate program described in subsection (b)(1).

    (b) ELIGIBLE STATES- A State shall be eligible to receive an allocation under subsection (c) if the State--

      (1) establishes (or has established) a State energy efficient appliance rebate program to provide rebates to residential consumers for the purchase of residential Energy Star products to replace used appliances of the same type;

      (2) submits an application for the allocation at such time, in such form, and containing such information as the Secretary may require; and

      (3) provides assurances satisfactory to the Secretary that the State will use the allocation to supplement, but not supplant, funds made available to carry out the State program.

    (c) AMOUNT OF ALLOCATIONS-

      (1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the Secretary shall allocate to the State energy office of each eligible State to carry out subsection (d) an amount equal to the product obtained by multiplying the amount made available under subsection (e) for the fiscal year by the ratio that the population of the State in the most recent calendar year for which data are available bears to the total population of all eligible States in that calendar year.

      (2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated under this subsection shall be adjusted proportionately so that no eligible State is allocated a sum that is less than an amount determined by the Secretary.

    (d) USE OF ALLOCATED FUNDS- The allocation to a State energy office under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out a State program.

    (e) ISSUANCE OF REBATES- Rebates may be provided to residential consumers that meet the requirements of the State program. The amount of a rebate shall be determined by the State energy office, taking into consideration--

      (1) the amount of the allocation to the State energy office under subsection (c);

      (2) the amount of any Federal or State tax incentive available for the purchase of the residential Energy Star product; and

      (3) the difference between the cost of the residential Energy Star product and the cost of an appliance that is not a residential Energy Star product, but is of the same type as, and is the nearest capacity, performance, and other relevant characteristics (as determined by the State energy office) to the residential Energy Star product.

    (f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section such sums as are necessary for fiscal year 2003 through fiscal year 2012.

Subtitle B--Federal Energy Efficiency

SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.

    (a) ENERGY REDUCTION GOALS- Section 543(a)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended to read as follows:

      `(1) Subject to paragraph (2), each agency shall apply energy conservation measures to, and shall improve the design for the construction of, the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per gross square foot of the Federal buildings of the agency in fiscal years 2002 through 2011 is reduced, as compared with the energy consumption per gross square foot of the Federal buildings of the agency in fiscal year 2000, by the percentage specified in the following table:

`Fiscal Year

Percentage reduction

          2002

--2

          2003

--4

          2004

--6

          2005

--8

          2006

--10

          2007

--12

          2008

--14

          2009

--16

          2010

--18

          2011

--20.'.

    (b) REVIEW AND REVISION OF ENERGY PERFORMANCE REQUIREMENT- Section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is further amended by adding at the end the following:

      `(3) Not later than December 31, 2010, the Secretary shall review the results of the implementation of the energy performance requirement established under paragraph (1) and submit to Congress recommendations concerning energy performance requirements for calendar years 2012 through 2021.'.

    (c) EXCLUSIONS- Section 543(c)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended to read as follows:

      `(1)(A) An agency may exclude, from the energy performance requirement for a calendar year established under subsection (a) and the energy management requirement established under subsection (b), any Federal building or collection of Federal buildings, if the head of the agency finds that--

        `(i) compliance with those requirements would be impracticable;

        `(ii) the agency has completed and submitted all federally required energy management reports;

        `(iii) the agency has achieved compliance with the energy efficiency requirements of this Act, the Energy Policy Act of 1992, Executives Orders, and other Federal law; and

        `(iv) the agency has implemented all practicable, life-cycle cost-effective projects with respect to the Federal building or collection of Federal buildings to be excluded.

      `(B) A finding of impracticability under subparagraph (A)(i) shall be based on--

        `(i) the energy intensiveness of activities carried out in the Federal building or collection of Federal buildings; or

        `(ii) the fact that the Federal building or collection of Federal buildings is used in the performance of a national security function.'.

    (d) REVIEW BY SECRETARY- Section 543(c)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--

      (1) by striking `impracticability standards' and inserting `standards for exclusion'; and

      (2) by striking `a finding of impracticability' and inserting `the exclusion'.

    (e) CRITERIA- Section 543(c) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end the following:

      `(3) Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines that establish criteria for exclusions under paragraph (1).'.

    (f) REPORTS- Section 548(b) of the National Energy Conservation Policy Act (42 U.S.C. 8258(b)) is amended--

      (1) in the subsection heading, by inserting `THE PRESIDENT AND' before `CONGRESS'; and

      (2) by inserting `President and' before `Congress'.

    (g) CONFORMING AMENDMENT- Section 550(d) of the National Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second sentence by striking `the 20 percent reduction goal established under section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).' and inserting `each of the energy reduction goals established under section 543(a).'.

SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is further amended by adding at the end the following:

    `(e) Metering of Energy Use-

      `(1) DEADLINE- By October 1, 2004, all Federal buildings shall, for the purposes of efficient use of energy and reduction in the cost of electricity used in such buildings, be metered or submetered in accordance with guidelines established by the Secretary under paragraph (2). Each agency shall use, to the maximum extent practicable, advanced meters or advanced metering devices that provide data at least daily and that measure at least hourly consumption of electricity in the Federal buildings of the agency. Such data shall be incorporated into existing Federal energy tracking systems and made available to Federal facility energy managers.

      `(2) Guidelines-

        `(A) IN GENERAL- Not later than 180 days after the date of enactment of this subsection, the Secretary, in consultation with the Department of Defense, the General Services Administration and representatives from the metering industry, utility industry, energy services industry, energy efficiency industry, national laboratories, universities and Federal facility energy managers, shall establish guidelines for agencies to carry out paragraph (1).

        `(B) REQUIREMENTS FOR GUIDELINES- The guidelines shall--

          `(i) take into consideration--

            `(I) the cost of metering and submetering and the reduced cost of operation and maintenance expected to result from metering and submetering;

            `(II) the extent to which metering and submetering are expected to result in increased potential for energy management, increased potential for energy savings and energy efficiency improvement, and cost and energy savings due to utility contract aggregation; and

            `(III) the measurement and verification protocols of the Department of Energy;

          `(ii) include recommendations concerning the amount of funds and the number of trained personnel necessary to gather and use the metering information to track and reduce energy use;

          `(iii) establish one or more dates, not later than 1 year after the date of issuance of the guidelines, on which the requirements specified in paragraph (1) shall take effect; and

          `(iv) establish exclusions from the requirements specified in paragraph (1) based on the de minimus quantity of energy use of a Federal building, industrial process, or structure.

        `(3) PLAN- No later than 6 months after the date guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall submit to the Secretary a plan describing how the agency will implement the requirements of paragraph (1), including (A) how the agency will designate personnel primarily responsible for achieving the requirements and (B) demonstration by the agency, complete with documentation, of any finding that advanced meters or advanced metering devices, as defined in paragraph (1), are not practicable.'.

SEC. 913. FEDERAL BUILDING PERFORMANCE STANDARDS.

    (a) REVISED STANDARDS- Section 305(a) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)) is amended--

      (1) in paragraph (2)(A), by striking `CABO Model Energy Code, 1992' and inserting `the 2000 International Energy Conservation Code'; and

      (2) by adding at the end the following:

      `(3) Revised federal building energy efficiency performance standards-

        `(A) IN GENERAL- Not later than 1 year after the date of enactment of this paragraph, the Secretary of Energy shall establish, by rule, revised Federal building energy efficiency performance standards that require that, if cost-effective--

          `(i) new commercial buildings and multifamily high rise residential buildings be constructed so as to achieve the applicable Energy Star building energy performance ratings or energy consumption levels at least 30 percent below those of the most recent ASHRAE Standard 90.1, whichever results in the greater increase in energy efficiency;

          `(ii) new residential buildings (other than those described in clause (i)) be constructed so as to achieve the applicable Energy Star building energy performance ratings or achieve energy consumption levels at least 30 percent below the requirements of the most recent version of the International Energy Conservation Code, whichever results in the greater increase in energy efficiency; and

          `(iii) sustainable design principles are applied to the siting, design, and construction of all new and replacement buildings.

        `(B) ADDITIONAL REVISIONS- Not later than 1 year after the date of approval of amendments to ASHRAE Standard 90.1 or the 2000 International Energy Conservation Code, the Secretary of Energy shall determine, based on the cost-effectiveness of the requirements under the amendments, whether the revised standards established under this paragraph should be updated to reflect the amendments.

        `(C) STATEMENT ON COMPLIANCE OF NEW BUILDINGS- In the budget request of the Federal agency for each fiscal year and each report submitted by the Federal agency under section 548(a) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)), the head of each Federal agency shall include--

          `(i) a list of all new Federal buildings of the Federal agency; and

          `(ii) a statement concerning whether the Federal buildings meet or exceed the revised standards established under this paragraph, including a monitoring and commissioning report that is in compliance with the measurement and verification protocols of the Department of Energy.

        `(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this paragraph and to implement the revised standards established under this paragraph.'.

    (b) ENERGY LABELING PROGRAM- Section 305(a) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)) is further amended by adding at the end the following:

    `(e) ENERGY LABELING PROGRAM- The Secretary of Energy, in cooperation with the Administrator of the Environmental Protection Agency, shall develop an energy labeling program for new Federal buildings that exceed the revised standards established under subsection (a)(3) by 15 percent or more.'.

SEC. 914. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) REQUIREMENTS- Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end the following:

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

    `(a) DEFINITIONS- In this section:

      `(1) ENERGY STAR PRODUCT- The term `Energy Star product' means a product that is rated for energy efficiency under an Energy Star program.

      `(2) ENERGY STAR PROGRAM- The term `Energy Star program' means the program established by section 324A of the Energy Policy and Conservation Act.

      `(3) EXECUTIVE AGENCY- The term `executive agency' has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

      `(4) FEMP DESIGNATED PRODUCT- The term `FEMP designated product' means a product that is designated under the Federal Energy Management Program of the Department of Energy as being among the highest 25 percent of equivalent products for energy efficiency.

    `(b) PROCUREMENT OF ENERGY EFFICIENT PRODUCTS-

      `(1) REQUIREMENT- To meet the requirements of an executive agency for an energy consuming product, the head of the executive agency shall, except as provided in paragraph (2), procure--

        `(A) an Energy Star product; or

        `(B) a FEMP designated product.

      `(2) EXCEPTIONS- The head of an executive agency is not required to procure an Energy Star product or FEMP designated product under paragraph (1) if--

        `(A) an Energy Star product or FEMP designated product is not cost effective over the life cycle of the product; or

        `(B) no Energy Star product or FEMP designated product is reasonably available that meets the requirements of the executive agency.

      `(3) PROCUREMENT PLANNING- The head of an executive agency shall incorporate into the specifications for all procurements involving energy consuming products and systems, and into the factors for the evaluation of offers received for the procurement, criteria for energy efficiency that are consistent with the criteria used for rating Energy Star products and for rating FEMP designated products.

    `(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN FEDERAL CATALOGS- Energy Star and FEMP designated products shall be clearly identified and prominently displayed in any inventory or listing of products by the General Services Administration or the Defense Logistics Agency.

    (b) CONFORMING AMENDMENT- The table of contents in section 1(b) of the National Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended by inserting after the item relating to section 551 the following:

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

    (c) REGULATIONS- Not later than 180 days after the effective date specified in subsection (f), the Secretary of Energy shall issue guidelines to carry out section 552 of the National Energy Conservation Policy Act (as added by subsection (a)).

    (d) DESIGNATION OF ENERGY STAR PRODUCTS- The Administrator of the Environmental Protection Agency and the Secretary of Energy shall expedite the process of designating products as Energy Star products (as defined in section 552 of the National Energy Conservation Policy Act (as added by subsection (a)).

    (e) DESIGNATION OF ELECTRIC MOTORS- In the case of electric motors of 1 to 500 horsepower, agencies shall select only premium efficient motors that meet a standard designated by the Secretary. The Secretary shall designate such a standard within 120 days of the enactment of this paragraph, after considering the recommendations of associated electric motor manufacturers and energy efficiency groups.

    (f) EFFECTIVE DATE- Subsection (a) and the amendment made by that subsection take effect on the date that is 180 days after the date of enactment of this Act.

SEC. 915. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT SUNSET.

    Section 801(c) of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.

SEC. 916. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.

    (a) ENERGY SAVINGS- Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as follows:

      `(2) The term `energy savings' means a reduction in the cost of energy or water, from a base cost established through a methodology set forth in the contract, used in an existing federally owned building or buildings or other federally owned facilities as a result of--

        `(A) the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services;

        `(B) the increased efficient use of existing energy sources by cogeneration or heat recovery, excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities; or

        `(C) the increased efficient use of existing water sources.'.

    (b) ENERGY SAVINGS CONTRACT- Section 804(3) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as follows:

      `(3) The terms `energy savings contract' and `energy savings performance contract' mean a contract which provides for the performance of services for the design, acquisition, installation, testing, operation, and, where appropriate, maintenance and repair, of an identified energy or water conservation measure or series of measures at one or more locations.'.

    (c) ENERGY OR WATER CONSERVATION MEASURE- Section 804(4) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended to read as follows:

      `(4) The term `energy or water conservation measure' means--

        `(A) an energy conservation measure, as defined in section 551(4) (42 U.S.C. 8259(4)); or

        `(B) a water conservation measure that improves water efficiency, is life cycle cost effective, and involves water conservation, water recycling or reuse, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities or other related activities, not at a Federal hydroelectric facility.'.

SEC. 917. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT PROGRAM.

    Within 180 days after the date of the enactment of this Act, the Secretary of Energy shall complete a review of the Energy Savings Performance Contract program to identify statutory, regulatory, and administrative obstacles that prevent Federal agencies from fully utilizing the program. In addition, this review shall identify all areas for increasing program flexibility and effectiveness, including audit and measurement verification requirements, accounting for energy use in determining savings, contracting requirements, and energy efficiency services covered. The Secretary shall report these findings to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate, and shall implement identified administrative and regulatory changes to increase program flexibility and effectiveness to the extent that such changes are consistent with statutory authority.

SEC. 918. FEDERAL ENERGY BANK.

    Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end the following:

`SEC. 553. FEDERAL ENERGY BANK.

    `(a) DEFINITIONS- In this section:

      `(1) BANK- The term `Bank' means the Federal Energy Bank established by subsection (b).

      `(2) ENERGY OR WATER EFFICIENCY PROJECT- The term `energy or water efficiency project' means a project that assists a Federal agency in meeting or exceeding the energy or water efficiency requirements of--

        `(A) this part;

        `(B) title VIII;

        `(C) subtitle F of title I of the Energy Policy Act of 1992 (42 U.S.C. 8262 et seq.); or

        `(D) any applicable Executive order, including Executive Order No. 13123.

      `(3) FEDERAL AGENCY- The term `Federal agency' means--

        `(A) an Executive agency (as defined in section 105 of title 5, United States Code);

        `(B) the United States Postal Service;

        `(C) Congress and any other entity in the legislative branch; and

        `(D) a Federal court and any other entity in the judicial branch.

    `(b) ESTABLISHMENT OF BANK-

      `(1) IN GENERAL- There is established in the Treasury of the United States a fund to be known as the `Federal Energy Bank', consisting of--

        `(A) such amounts as are deposited in the Bank under paragraph (2);

        `(B) such amounts as are repaid to the Bank under subsection (c)(2)(D); and

        `(C) any interest earned on investment of amounts in the Bank under paragraph (3).

      `(2) DEPOSITS IN BANK-

        `(A) IN GENERAL- Subject to the availability of appropriations and to subparagraph (B), the Secretary of the Treasury shall deposit in the Bank an amount equal to $250,000,000 in fiscal year 2003 and in each fiscal year thereafter.

        `(B) MAXIMUM AMOUNT IN BANK- Deposits under subparagraph (A) shall cease beginning with the fiscal year following the fiscal year in which the amounts in the Bank (including amounts on loan from the Bank) become equal to or exceed $1,000,000,000.

      `(3) INVESTMENT OF AMOUNTS- The Secretary of the Treasury shall invest such portion of the Bank as is not, in the judgment of the Secretary, required to meet current withdrawals. Investments may be made only in interest-bearing obligations of the United States.

    `(c) LOANS FROM THE BANK-

      `(1) IN GENERAL- The Secretary of the Treasury shall transfer from the Bank to the Secretary such amounts as are appropriated to carry out the loan program under paragraph (2).

      `(2) LOAN PROGRAM-

        `(A) Establishment-

          `(i) IN GENERAL- In accordance with subsection (d), the Secretary, in consultation with the Secretary of Defense, the Administrator of General Services, and the Director of the Office of Management and Budget, shall establish a program to make loans of amounts in the Bank to any Federal agency that submits an application satisfactory to the Secretary in order to pay the costs of a project described in subparagraph (C).

          `(ii) COMMENCEMENT OF OPERATIONS- The Secretary may begin--

            `(I) accepting applications for loans from the Bank in fiscal year 2002; and

            `(II) making loans from the Bank in fiscal year 2003.

        `(B) ENERGY SAVINGS PERFORMANCE CONTRACTING FUNDING- To the extent practicable, an agency shall not submit a project for which energy performance contracting funding is available and is acceptable to the Federal agency under title VIII.

        `(C) PURPOSES OF LOAN-

          `(i) IN GENERAL- A loan from the Bank may be used to pay--

            `(I) the costs of an energy or water efficiency project, or a renewable or alternative energy project, for a new or existing Federal building (including selection and design of the project);

            `(II) the costs of an energy metering plan and metering equipment installed pursuant to section 543(e) or for the purpose of verification of the energy savings under an energy savings performance contract under title VIII; or

            `(III) at the time of contracting, the costs of cofunding of an energy savings performance contract (including a utility energy service agreement) in order to shorten the payback period of the project that is the subject of the energy savings performance contract.

          `(ii) LIMITATION- A Federal agency may use not more than 10 percent of the amount of a loan under subclause (I) or (II) of clause (i) to pay the costs of administration and proposal development (including data collection and energy surveys).

          `(iii) RENEWABLE AND ALTERNATIVE ENERGY PROJECTS- Not more than 25 percent of the amount on loan from the Bank at any time may be loaned for renewable energy and alternative energy projects (as defined by the Secretary in accordance with applicable law (including Executive Orders)).

        `(D) REPAYMENTS-

          `(i) IN GENERAL- Subject to clauses (ii) through (iv), a Federal agency shall repay to the Bank the principal amount of a loan plus interest at a rate determined by the President, in consultation with the Secretary and the Secretary of the Treasury.

          `(ii) WAIVER OR REDUCTION OF INTEREST- The Secretary may waive or reduce the rate of interest required to be paid under clause (i) if the Secretary determines that payment of interest by a Federal agency at the rate determined under that clause is not required to fund the operations of the Bank.

          `(iii) DETERMINATION OF INTEREST RATE- The interest rate determined under clause (i) shall be at a rate that is sufficient to ensure that, beginning not later than October 1, 2007, interest payments will be sufficient to fully fund the operations of the Bank.

          `(iv) INSUFFICIENCY OF APPROPRIATIONS-

            `(I) REQUEST FOR APPROPRIATIONS- As part of the budget request of the Federal agency for each fiscal year, the head of each Federal agency shall submit to the President a request for such amounts as are necessary to make such repayments as are expected to become due in the fiscal year under this subparagraph.

            `(II) SUSPENSION OF REPAYMENT REQUIREMENT- If, for any fiscal year, sufficient appropriations are not made available to a Federal agency to make repayments under this subparagraph, the Bank shall suspend the requirement of repayment under this subparagraph until such appropriations are made available.

        `(E) FEDERAL AGENCY ENERGY BUDGETS- Until a loan is repaid, a Federal agency budget submitted by the President to Congress for a fiscal year shall not be reduced by the value of energy savings accrued as a result of any energy conservation measure implemented using amounts from the Bank.

        `(F) NO RESCISSION OR REPROGRAMMING- A Federal agency shall not rescind or reprogram loan amounts made available from the Bank except as permitted under guidelines issued under subparagraph (G).

        `(G) GUIDELINES- The Secretary shall issue guidelines for implementation of the loan program under this paragraph, including selection criteria, maximum loan amounts, and loan repayment terms.

    `(d) SELECTION CRITERIA-

      `(1) IN GENERAL- The Secretary shall establish criteria for the selection of projects to be awarded loans in accordance with paragraph (2).

      `(2) SELECTION CRITERIA-

        `(A) IN GENERAL- The Secretary may make loans from the Bank only for a project that--

          `(i) is technically feasible;

          `(ii) is determined to be cost-effective using life cycle cost methods established by the Secretary;

          `(iii) includes a measurement and management component, based on the measurement and verification protocols of the Department of Energy, to--

            `(I) commission energy savings for new and existing Federal facilities;

            `(II) monitor and improve energy efficiency management at existing Federal facilities; and

            `(III) verify the energy savings under an energy savings performance contract under title VIII; and

          `(iv)(I) in the case of a renewable energy or alternative energy project, has a simple payback period of not more than 15 years; and

          `(II) in the case of any other project, has a simple payback period of not more than 10 years.

        `(B) PRIORITY- In selecting projects, the Secretary shall give priority to projects that--

          `(i) are a component of a comprehensive energy management project for a Federal facility; and

          `(ii) are designed to significantly reduce the energy use of the Federal facility.

    `(e) REPORTS AND AUDITS-

      `(1) REPORTS TO THE SECRETARY- Not later than 1 year after the completion of installation of a project that has a cost of more than $1,000,000, and annually thereafter, a Federal agency shall submit to the Secretary a report that--

        `(A) states whether the project meets or fails to meet the energy savings projections for the project; and

        `(B) for each project that fails to meet the energy savings projections, states the reasons for the failure and describes proposed remedies.

      `(2) AUDITS- The Secretary may audit, or require a Federal agency that receives a loan from the Bank to audit, any project financed with amounts from the Bank to assess the performance of the project.

      `(3) REPORTS TO CONGRESS- At the end of each fiscal year, the Secretary shall submit to Congress a report on the operations of the Bank, including a statement of--

          `(A) the total receipts by the Bank;

          `(B) the total amount of loans from the Bank to each Federal agency; and

          `(C) the estimated cost and energy savings resulting from projects funded with loans from the Bank.

    `(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this section.'.

SEC. 919. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) IN GENERAL- Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end:

`SEC. 554. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL BUILDINGS.

    `(a) IN GENERAL- The Architect of the Capitol--

      `(1) shall develop, update, and implement a cost-effective energy conservation and management plan (referred to in this section as the `plan') for all facilities administered by the Congress (referred to in this section as `congressional buildings') to meet the energy performance requirements for Federal buildings established under section 543(a)(1); and

      `(2) shall submit the plan to Congress, not later than 180 days after the date of enactment of this section.

    `(b) PLAN REQUIREMENTS- The plan shall include--

      `(1) a description of the life-cycle cost analysis used to determine the cost-effectiveness of proposed energy efficiency projects;

      `(2) a schedule of energy surveys to ensure complete surveys of all congressional buildings every 5 years to determine the cost and payback period of energy and water conservation measures;

      `(3) a strategy for installation of life cycle cost effective energy and water conservation measures;

      `(4) the results of a study of the costs and benefits of installation of submetering in congressional buildings; and

      `(5) information packages and `how-to' guides for each Member and employing authority of Congress that detail simple, cost-effective methods to save energy and taxpayer dollars in the workplace.

    `(c) CONTRACTING AUTHORITY- The Architect--

      `(1) may contract with nongovernmental entities and use private sector capital to finance energy conservation projects and meet energy performance requirements; and

      `(2) may use innovative contracting methods that will attract private sector funding for the installation of energy efficient and renewable energy technology, such as energy savings performance contracts described in title VIII.

    `(d) CAPITOL VISITOR CENTER- The Architect--

      `(1) shall ensure that state-of-the-art energy efficiency and renewable energy technologies are used in the construction and design of the Visitor Center; and

      `(2) shall include in the Visitor Center an exhibit on the energy efficiency and renewable energy measures used in congressional buildings.

    `(e) ANNUAL REPORT- The Architect shall submit to Congress annually a report on congressional energy management and conservation programs required under this section that describes in detail--

      `(1) energy expenditures and savings estimates for each facility;---

      `(2) energy management and conservation projects; and

      `(3) future priorities to ensure compliance with this section.'.

    (b) REPEAL- Section 310 of the Legislative Branch Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.

SEC. 920. INCREASED USE OF RECOVERED MATERIAL IN FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE.

    (a) DEFINITIONS- In this section:

      (1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.

      (2) AGENCY HEAD- The term `agency head' means--

        (A) the Secretary of Transportation; and

        (B) the head of each other Federal agency that on a regular basis procures, or provides Federal funds to pay or assist in paying the cost of procuring, material for cement or concrete projects.

      (3) CEMENT OR CONCRETE PROJECT- The term `cement or concrete project' means a project for the construction or maintenance of a highway or other transportation facility or a Federal, State, or local government building or other public facility that--

        (A) involves the procurement of cement or concrete; and

        (B) is carried out in whole or in part using Federal funds.

      (4) RECOVERED MATERIAL- The term `recovered material' means--

        (A) ground granulated blast furnace slag;

        (B) coal combustion fly ash; and

        (C) any other waste material or byproduct recovered or diverted from solid waste that the Administrator, in consultation with an agency head, determines should be treated as recovered material under this section for use in cement or concrete projects paid for, in whole or in part, by the agency head.

    (b) IMPLEMENTATION OF REQUIREMENTS-

      (1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Administrator and each agency head shall take such actions as are necessary to implement fully all procurement requirements and incentives in effect as of the date of enactment of this Act (including guidelines under section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6963)) that provide for the use of cement and concrete incorporating recovered material in cement or concrete projects.

      (2) PRIORITY- In carrying out paragraph (1) an agency head shall give priority to achieving greater use of recovered material in cement or concrete projects for which recovered materials historically have not been used or have been used only minimally.

    (c) FULL IMPLEMENTATION STUDY-

      (1) IN GENERAL- The Administrator and the Secretary of Transportation, in cooperation with the Secretary of Energy, shall conduct a study to determine the extent to which current procurement requirements, when fully implemented in accordance with subsection (b), may realize energy savings and greenhouse gas emission reduction benefits attainable with substitution of recovered material in cement used in cement or concrete projects.

      (2) MATTERS TO BE ADDRESSED- The study shall--

        (A) quantify the extent to which recovered materials are being substituted for Portland cement, particularly as a result of current procurement requirements, and the energy savings and greenhouse gas emission reduction benefits associated with that substitution;

        (B) identify all barriers in procurement requirements to fuller realization of energy savings and greenhouse gas emission reduction benefits, including barriers resulting from exceptions from current law; and

        (C)(i) identify potential mechanisms to achieve greater substitution of recovered material in types of cement or concrete projects for which recovered materials historically have not been used or have been used only minimally;

        (ii) evaluate the feasibility of establishing guidelines or standards for optimized substitution rates of recovered material in those cement or concrete projects; and

        (iii) identify any potential environmental or economic effects that may result from greater substitution of recovered material in those cement or concrete projects.

      (3) REPORT- Not later than 30 months after the date of enactment of this Act, the Secretary shall submit to the Committee on Appropriations and Committee on Environment and Public Works of the Senate and the Committee on Appropriations and Committee on Energy and Commerce of the House of Representatives a report on the study.

    (d) ADDITIONAL PROCUREMENT REQUIREMENTS- Within 1 year of the release of the report in accordance with subsection (c)(3), the Administrator and each agency head shall take additional actions authorized under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) to establish procurement requirements and incentives that provide for the use of cement and concrete with increased substitution of recovered material in the construction and maintenance of cement or concrete projects, so as to--

      (1) realize more fully the energy savings and greenhouse gas emission reduction benefits associated with increased substitution; and

      (2) eliminate barriers identified under subsection (c).

    (e) EFFECT OF SECTION- Nothing in this section affects the requirements of section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6962) (including the guidelines and specifications for implementing those requirements).

Subtitle C--Industrial Efficiency and Consumer Products

SEC. 921. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) VOLUNTARY AGREEMENTS- The Secretary of Energy shall enter into voluntary agreements with one or more persons in industrial sectors that consume significant amounts of primary energy per unit of physical output to reduce the energy intensity of their production activities.

    (b) GOAL- Voluntary agreements under this section shall have a goal of reducing energy intensity by not less than 2.5 percent each year from 2002 through 2012.

    (c) RECOGNITION- The Secretary of Energy, in cooperation with the Administrator of the Environmental Protection Agency and other appropriate Federal agencies, shall develop mechanisms to recognize and publicize the achievements of participants in voluntary agreements under this section.

    (d) DEFINITION- In this section, the term `energy intensity' means the primary energy consumed per unit of physical output in an industrial process.

    (e) TECHNICAL ASSISTANCE- An entity that enters into an agreement under this section and continues to make a good faith effort to achieve the energy efficiency goals specified in the agreement shall be eligible to receive from the Secretary a grant or technical assistance as appropriate to assist in the achievement of those goals.

    (f) REPORT- Not later than June 30, 2008 and June 30, 2012, the Secretary shall submit to Congress a report that evaluates the success of the voluntary agreements, with independent verification of a sample of the energy savings estimates provided by participating firms.

SEC. 922. AUTHORITY TO SET STANDARDS FOR COMMERCIAL PRODUCTS.

    Part B of title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.) is amended as follows:

      (1) In the heading for such part, by inserting `AND COMMERCIAL' after `CONSUMER'.

      (2) In section 321(2), by inserting `or commercial' after `consumer'.

      (3) In paragraphs (4), (5), and (15) of section 321, by striking `consumer' each place it appears and inserting `covered'.

      (4) In section 322(a), by inserting `or commercial' after `consumer' the first place it appears in the material preceding paragraph (1).

      (5) In section 322(b), by inserting `or commercial' after `consumer' each place it appears.

      (6) In section 322 (b)(1)(B) and (b)(2)(A), by inserting `or per-business in the case of a commercial product' after `per-household' each place it appears.

      (7) In section 322 (b)(2)(A), by inserting `or businesses in the case of commercial products' after `households' each place it appears.

      (8) In section 322 (B)(2)(C)--

        (A) by striking `term' and inserting `terms'; and

        (B) by inserting `and `business' after `household'.

      (9) In section 323 (b)(1) (B) by inserting `or commercial' after `consumer'.

SEC. 923. ADDITIONAL DEFINITIONS.

    Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended by adding at the end the following:

      `(32) The term `battery charger' means a device that charges batteries for consumer products.

      `(33) The term `commercial refrigerator, freezer and refrigerator-freezer' means a refrigerator, freezer or refrigerator-freezer that--

        `(A) is not a consumer product regulated under this Act; and

        `(B) incorporates most components involved in the vapor-compression cycle and the refrigerated compartment in a single package.

      `(34) The term `external power supply' means an external power supply circuit that is used to convert household electric current into either DC current or lower-voltage AC current to operate a consumer product.

      `(35) The term `illuminated exit sign' means a sign that--

        `(A) is designed to be permanently fixed in place to identify an exit; and

        `(B) consists of--

          `(i) an electrically powered integral light source that illuminates the legend `EXIT' and any directional indicators; and

          `(ii) provides contrast between the legend, any directional indicators, and the background.

      `(36)(A) Except as provided in subsection (B), the term `low-voltage dry-type transformer' means a transformer that--

        `(i) has an input voltage of 600 volts or less;

        `(ii) is air-cooled;

        `(iii) does not use oil as a coolant; and

        `(iv) is rated for operation at a frequency of 60 Hertz.

      `(B) The term `low-voltage dry-type transformer' does not include--

        `(i) transformers with multiple voltage taps, with the highest voltage tap equaling at least 20 percent more than the lowest voltage tap;

        `(ii) transformers that are designed to be used in a special purpose application, such as transformers commonly known as drive transformers, rectifier transformers, autotransformers, Uninterruptible Power System transformers, impedance transformers, harmonic transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers; or

        `(iii) any transformer not listed in clause (ii) that is excluded by the Secretary by rule because the transformer is designed for a special application and the application of standards to the transformer would not result in significant energy savings.

      `(37) The term `standby mode' means the lowest amount of electric power used by a household appliance when not performing its active functions, as defined on an individual product basis by the Secretary.

      `(38) The term `torchiere' means a portable electric lamp with a reflector bowl that directs light upward so as to give indirect illumination.

      `(39) The term `transformer' means a device consisting of two or more coils of insulated wire that transfers alternating current by electromagnetic induction from one coil to another to change the original voltage or current value.

      `(40) The term `unit heater' means a self-contained fan-type heater designed to be installed within the heated space, except that such term does not include a warm air furnace.

      `(41) The term `traffic signal module' means a standard 8-inch (200mm) or 12-inch (300mm) traffic signal indication, consisting of a light source, a lens, and all other parts necessary for operation, that communicates movement messages to drivers through red, amber, and green colors.'.

SEC. 924. ADDITIONAL TEST PROCEDURES.

    (a) EXIT SIGNS- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293) is amended by adding at the end the following:

      `(9) Test procedures for illuminated exit signs shall be based on the test method used under the Energy Star program of the Environmental Protection Agency for illuminated exit signs, as in effect on the date of enactment of this paragraph.

      `(10) Test procedures for low voltage dry-type distribution transformers shall be based on the `Standard Test Method for Measuring the Energy Consumption of Distribution Transformers' prescribed by the National Electrical Manufacturers Association (NEMA TP 2-1998). The Secretary may review and revise this test procedure based on future revisions to such standard test method.

      `(11) Test procedures for traffic signal modules shall be based on the test method used under the Energy Star program of the Environmental Protection Agency for traffic signal modules, as in effect on the date of enactment of this paragraph.'.

    (b) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- Section 323 of the Energy Policy and Conservation Act (42 U.S.C. 6293) is further amended by adding at the end the following:

    `(f) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- The Secretary shall within 24 months after the date of enactment of this subsection prescribe testing requirements for suspended ceiling fans, refrigerated bottled or canned beverage vending machines, commercial unit heaters, and commercial refrigerators, freezers and refrigerator-freezers. Such testing requirements shall be based on existing test procedures used in industry to the extent practical and reasonable. In the case of suspended ceiling fans, such test procedures shall include efficiency at both maximum output and at an output no more than 50 percent of the maximum output.'.

SEC. 925. ENERGY LABELING.

    (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER PRODUCT LABELING- Paragraph (2) of section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the following:

        `(F) Not later than 3 months after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to consider the effectiveness of the current consumer products labeling program in assisting consumers in making purchasing decisions and improving energy efficiency and to consider changes to the labeling rules that would improve the effectiveness of consumer product labels. Such rulemaking shall be completed within 15 months of the date of enactment of this subparagraph.'.

    (b) RULEMAKING ON LABELING FOR ADDITIONAL PRODUCTS- Section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is further amended by adding at the end the following:

      `(5) The Secretary shall within 6 months after the date on which energy conservation standards are prescribed by the Secretary for covered products referred to in subsections (u) and (v) of section 325, and within 18 months of enactment of this paragraph for products referred to in subsections (w) through (y) of section 325, prescribe, by rule, labeling requirements for such products. Labeling requirements adopted under this paragraph shall take effect on the same date as the standards set pursuant to sections 325 (v) through (y).'.

SEC. 926. ENERGY STAR PROGRAM.

    The Energy Policy and Conservation Act (42 U.S.C. 6201 and following) is amended by inserting after section 324 the following:

`ENERGY STAR PROGRAM

    `SEC. 324A. There is established at the Department of Energy and the Environmental Protection Agency a program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through labeling of products and buildings that meet the highest energy efficiency standards. Responsibilities under the program shall be divided between the Department of Energy and the Environmental Protection Agency consistent with the terms of agreements between the two agencies. The Administrator and the Secretary shall--

      `(1) promote Energy Star compliant technologies as the preferred technologies in the marketplace for achieving energy efficiency and to reduce pollution;

      `(2) work to enhance public awareness of the Energy Star label, including special outreach to small businesses;

      `(3) preserve the integrity of the Energy Star label; and

      `(4) solicit the comments of interested parties in establishing a new Energy Star product category or in revising a product category, and upon adoption of a new or revised product category provide an explanation of the decision that responds to significant public comments.'.

SEC. 927. ENERGY CONSERVATION STANDARDS FOR CENTRAL AIR CONDITIONERS AND HEAT PUMPS.

    Section 325(d)(3) of the Energy Policy and Conservation Act (42 U.S.C. 6295(d)) is amended by adding at the end the following:

        `(C) REVISION OF STANDARDS- Not later than 60 days after the date of enactment of this subparagraph, the Secretary shall amend the standards established under paragraph (1).'.

SEC. 928. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS.

    Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by adding at the end the following:

    `(u) STANDBY MODE ELECTRIC ENERGY CONSUMPTION-

      `(1) INITIAL RULEMAKING- (A) The Secretary shall, within 18 months after the date of enactment of this subsection, prescribe by notice and comment, definitions of standby mode and test procedures for the standby mode power use of battery chargers and external power supplies. In establishing these test procedures, the Secretary shall consider, among other factors, existing test procedures used for measuring energy consumption in standby mode and assess the current and projected future market for battery chargers and external power supplies. This assessment shall include estimates of the significance of potential energy savings from technical improvements to these products and suggested product classes for standards. Prior to the end of this time period, the Secretary shall hold a scoping workshop to discuss and receive comments on plans for developing energy conservation standards for standby mode energy use for these products.

      `(B) The Secretary shall, within 3 years after the date of enactment of this subsection, issue a final rule that determines whether energy conservation standards shall be promulgated for battery chargers and external power supplies or classes thereof. For each product class, any such standards shall be set at the lowest level of standby energy use that--

        `(i) meets the criteria of subsections (o), (p), (q), (r), (s) and (t); and

        `(ii) will result in significant overall annual energy savings, considering both standby mode and other operating modes.

      `(2) DESIGNATION OF ADDITIONAL COVERED PRODUCTS- (A) Not later than 180 days after the date of enactment of this subsection, the Secretary shall publish for public comment and public hearing a notice to determine whether any noncovered products should be designated as covered products for the purpose of instituting a rulemaking under this section to determine whether an energy conservation standard restricting standby mode energy consumption, should be promulgated; providing that any restriction on standby mode energy consumption shall be limited to major sources of such consumption.

      `(B) In making the determinations pursuant to subparagraph (A) of whether to designate new covered products and institute rulemakings, the Secretary shall, among other relevant factors and in addition to the criteria in section 322(b), consider--

        `(i) standby mode power consumption compared to overall product energy consumption; and

        `(ii) the priority and energy savings potential of standards which may be promulgated under this subsection compared to other required rulemakings under this section and the available resources of the Department to conduct such rulemakings.

      `(C) Not later than 1 year after the date of enactment of this subsection, the Secretary shall issue a determination of any new covered products for which he intends to institute rulemakings on standby mode pursuant to this section and he shall state the dates by which he intends to initiate those rulemakings.

      `(3) REVIEW OF STANDBY ENERGY USE IN COVERED PRODUCTS- In determining pursuant to section 323 whether test procedures and energy conservation standards pursuant to section 325 should be revised, the Secretary shall consider for covered products which are major sources of standby mode energy consumption whether to incorporate standby mode into such test procedures and energy conservation standards, taking into account, among other relevant factors, the criteria for non-covered products in subparagraph (B) of this subsection.

      `(4) RULEMAKING FOR STANDBY MODE- (A) Any rulemaking instituted under this subsection or for covered products under this section which restricts standby mode power consumption shall be subject to the criteria and procedures for issuing energy conservation standards set forth in section 325 and the criteria set forth in paragraph 2(B) of this subsection.

      `(B) No standard can be proposed for new covered products or covered products in a standby mode unless the Secretary has promulgated applicable test procedures for each product pursuant to section 323.

      `(C) The provisions of section 327 shall apply to new covered products which are subject to the rulemakings for standby mode after a final rule has been issued.

      `(5) EFFECTIVE DATE- Any standard promulgated under this subsection shall be applicable to products manufactured or imported 3 years after the date of promulgation.

      `(6) VOLUNTARY PROGRAMS TO REDUCE STANDBY MODE ENERGY USE- The Secretary and the Administrator shall collaborate and develop programs, including programs pursuant to section 324A and other voluntary industry agreements or codes of conduct, which are designed to reduce standby mode energy use.

    `(v) SUSPENDED CEILING FANS, VENDING MACHINES, UNIT HEATERS, AND COMMERCIAL REFRIGERATORS, FREEZERS AND REFRIGERATOR-FREEZERS- The Secretary shall within 24 months after the date on which testing requirements are prescribed by the Secretary pursuant to section 323(f), prescribe, by rule, energy conservation standards for suspended ceiling fans, refrigerated bottled or canned beverage vending machines, unit heaters, and commercial refrigerators, freezers and refrigerator-freezers. In establishing standards under this subsection, the Secretary shall use the criteria and procedures contained in subsections (l) and (m). Any standard prescribed under this subsection shall apply to products manufactured 3 years after the date of publication of a final rule establishing such standard.

    `(w) ILLUMINATED EXIT SIGNS- Illuminated exit signs manufactured on or after January 1, 2005 shall meet the Energy Star Program performance requirements for illuminated exit signs prescribed by the Environmental Protection Agency as in effect on the date of enactment of this subsection.

    `(x) TORCHIERES- Torchieres manufactured on or after January 1, 2005--

      `(1) shall consume not more than 190 watts of power; and

      `(2) shall not be capable of operating with lamps that total more than 190 watts.

    `(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS- The efficiency of low voltage dry-type transformers manufactured on or after January 1, 2005 shall be the Class I Efficiency Levels for low voltage dry-type transformers specified in Table 4-2 of the `Guide for Determining Energy Efficiency for Distribution Transformers' published by the National Electrical Manufacturers Association (NEMA TP-1-1996).

    `(z) TRAFFIC SIGNAL MODULES- Traffic signal modules manufactured on or after January 1, 2006 shall meet the performance requirements used under the Energy Star program of the Environmental Protection Agency for traffic signals, as in effect on the date of enactment of this paragraph, and shall be installed with compatible, electrically-connected signal control interface devices and conflict monitoring systems.'.

SEC. 929. CONSUMER EDUCATION ON ENERGY EFFICIENCY BENEFITS OF AIR CONDITIONING, HEATING, AND VENTILATION MAINTENANCE.

    Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 6307) is amended by adding at the end the following:

    `(c) HVAC MAINTENANCE- (1) For the purpose of ensuring that installed air conditioning and heating systems operate at their maximum rated efficiency levels, the Secretary shall, within 180 days of the date of enactment of this subsection, carry out a program to educate homeowners and small business owners concerning the energy savings resulting from properly conducted maintenance of air conditioning, heating, and ventilating systems.

    `(2) The Secretary may carry out the program in cooperation with industry trade associations, industry members, and energy efficiency organizations.

    `(d) SMALL BUSINESS EDUCATION AND ASSISTANCE- The Administrator of the Small Business Administration, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and coordinate a Government-wide program, building on the existing Energy Star for Small Business Program, to assist small business to become more energy efficient, understand the cost savings obtainable through efficiencies, and identify financing options for energy efficiency upgrades. The Secretary and the Administrator shall make the program information available directly to small businesses and through other Federal agencies, including the Federal Emergency Management Agency, and the Department of Agriculture.'.

SEC. 930. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall contract with the National Academy of Sciences for a study, to be completed within 1 year of enactment of this Act, to examine whether the goals of energy efficiency standards are best served by measurement of energy consumed, and efficiency improvements, at the actual site of energy consumption, or through the full fuel cycle, beginning at the source of energy production. The Secretary shall submit the report to the Congress.

Subtitle D--Housing Efficiency

SEC. 931. CAPACITY BUILDING FOR ENERGY EFFICIENT, AFFORDABLE HOUSING.

    Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note) is amended--

      (1) in paragraph (1), by inserting before the semicolon at the end the following: `, including capabilities regarding the provision of energy efficient, affordable housing and residential energy conservation measures'; and

      (2) in paragraph (2), by inserting before the semicolon the following: `, including such activities relating to the provision of energy efficient, affordable housing and residential energy conservation measures that benefit low-income families'.

SEC. 932. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION AND EFFICIENCY ACTIVITIES.

    Section 105(a)(8) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended--

      (1) by inserting `or efficiency' after `energy conservation';

      (2) by striking `, and except that' and inserting `; except that'; and

      (3) by inserting before the period at the end the following: `; and except that each percentage limitation under this paragraph on the amount of assistance provided under this title that may be used for the provision of public services is hereby increased by 10 percent, but such percentage increase may be used only for the provision of public services concerning energy conservation or efficiency'.

SEC. 933. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT HOUSING.

    (a) SINGLE FAMILY HOUSING MORTGAGE INSURANCE- Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the first undesignated paragraph beginning after subparagraph (B)(iii) (relating to solar energy systems)--

      (1) by inserting `or paragraph (10)'; and

      (2) by striking `20 percent' and inserting `30 percent'.

    (b) MULTIFAMILY HOUSING MORTGAGE INSURANCE- Section 207(c) of the National Housing Act (12 U.S.C. 1713(c)) is amended, in the second undesignated paragraph beginning after paragraph (3) (relating to solar energy systems and residential energy conservation measures), by striking `20 percent' and inserting `30 percent'.

    (c) COOPERATIVE HOUSING MORTGAGE INSURANCE- Section 213(p) of the National Housing Act (12 U.S.C. 1715e(p)) is amended by striking `20 per centum' and inserting `30 percent'.

    (d) REHABILITATION AND NEIGHBORHOOD CONSERVATION HOUSING MORTGAGE INSURANCE- Section 220(d)(3)(B)(iii) of the National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended by striking `20 per centum' and inserting `30 percent'.

    (e) LOW-INCOME MULTIFAMILY HOUSING MORTGAGE INSURANCE- Section 221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by striking `20 per centum' and inserting `30 percent'.

    (f) ELDERLY HOUSING MORTGAGE INSURANCE- The proviso at the end of section 213(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2)) is amended by striking `20 per centum' and inserting `30 percent'.

    (g) CONDOMINIUM HOUSING MORTGAGE INSURANCE- Section 234(j) of the National Housing Act (12 U.S.C. 1715y(j)) is amended by striking `20 per centum' and inserting `30 percent'.

SEC. 934. PUBLIC HOUSING CAPITAL FUND.

    Section 9(d)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)(1)) is amended--

      (1) in subparagraph (I), by striking `and' at the end;

      (2) in subparagraph (K), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new subparagraph:

        `(L) improvement of energy and water-use efficiency by installing fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2-1998 and A112.18.1-2000, or any revision thereto, applicable at the time of installation, and by increasing energy efficiency and water conservation by such other means as the Secretary determines are appropriate.'.

SEC. 935. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED HOUSING.

    Section 251(b)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8231(1)) is amended--

      (1) by striking `financed with loans' and inserting `assisted';

      (2) by inserting after `1959,' the following: `which are eligible multifamily housing projects (as such term is defined in section 512 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) and are subject to a mortgage restructuring and rental assistance sufficiency plans under such Act,'; and

      (3) by inserting after the period at the end of the first sentence the following new sentence: `Such improvements may also include the installation of energy and water conserving fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2-1998 and A112.18.1-2000, or any revision thereto, applicable at the time of installation.'.

SEC. 936. NORTH AMERICAN DEVELOPMENT BANK.

    Part 2 of subtitle D of title V of the North American Free Trade Agreement Implementation Act (22 U.S.C. 290m-290m-3) is amended by adding at the end the following:

`SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

    `Consistent with the focus of the Bank's Charter on environmental infrastructure projects, the Board members representing the United States should use their voice and vote to encourage the Bank to finance projects related to clean and efficient energy, including energy conservation, that prevent, control, or reduce environmental pollutants or contaminants.'.

SEC. 937. CAPITAL FUND.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g), as amended by section 934, is amended--

      (1) in subsection (d)(1)--

        (A) in subparagraph (L), by striking the period at the end and inserting `; and';

        (B) by redesignating subparagraph (L) as subparagraph (K); and

        (C) by adding at the end the following:

          `(L) integrated utility management and capital planning to maximize energy conservation and efficiency measures.'; and

      (2) in subsection (e)(2)(C)--

        (A) by striking `The' and inserting the following:

          `(i) IN GENERAL- The'; and

        (B) by adding at the end the following:

          `(ii) THIRD PARTY CONTRACTS- Contracts described in clause (i) may include contracts for equipment conversions to less costly utility sources, projects with resident paid utilities, adjustments to frozen base year consumption, including systems repaired to meet applicable building and safety codes and adjustments for occupancy rates increased by rehabilitation.

          `(iii) TERM OF CONTRACT- The total term of a contract described in clause (i) shall be for not more than 20 years to allow longer payback periods for retrofits, including but not limited to windows, heating system replacements, wall insulation, site-based generations, and advanced energy savings technologies, including renewable energy generation.'.

SEC. 938. ENERGY-EFFICIENT APPLIANCES.

    A public housing agency shall purchase energy-efficient appliances that are Energy Star products as defined in section 552 of the National Energy Policy and Conservation Act (as amended by this Act) when the purchase of energy-efficient appliances is cost-effective to the public housing agency.

SEC. 939. ENERGY EFFICIENCY STANDARDS.

    Section 109 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1)--

          (i) by striking `the date of the enactment of the Energy Policy Act of 1992' and inserting `September 30, 2002';

          (ii) in subparagraph (A), by striking `and' at the end;

          (iii) in subparagraph (B), by striking the period at the end and inserting a semi-colon; and

          (iv) by adding at the end the following:

        `(C) rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants, established under section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), where such standards are determined to be cost effective by the Secretary of Housing and Urban Development; and

        (B) in paragraph (2), by striking `Council of American' and all that follows through `life-cycle cost basis' and inserting `2000 International Energy Conservation Code';

      (2) in subsection (b)--

        (A) by striking `the date of the enactment of the Energy Policy Act of 1992' and inserting `September 30, 2002'; and

        (B) by striking `CABO' and all that follows through `1989' and inserting `the 2000 International Energy Conservation Code'; and

      (3) in subsection (c)--

        (A) in the heading, by striking `MODEL ENERGY CODE' and inserting `THE INTERNATIONAL ENERGY CONSERVATION CODE'; and

        (B) by striking `CABO' and all that follows through `1989' and inserting `the 2000 International Energy Conservation Code'.

SEC. 940. ENERGY STRATEGY FOR HUD.

    (a) IN GENERAL- The Secretary of Housing and Urban Development shall develop and implement an integrated strategy to reduce utility expenses through cost-effective energy conservation and efficiency measures, design and construction in public and assisted housing.

    (b) ENERGY MANAGEMENT OFFICE- The Secretary of Housing and Urban Development shall create an office at the Department of Housing and Urban Development for utility management, energy efficiency, and conservation, with responsibility for implementing the strategy developed under this section, including development of a centralized database that monitors public housing energy usage, and development of energy reduction goals and incentives for public housing agencies. The Secretary shall submit an annual report to Congress on the strategy.

Subtitle E--Rural and Remote Communities

SEC. 941. SHORT TITLE.

    This subtitle may be cited as the `Rural and Remote Community Fairness Act'.

SEC. 942. FINDINGS AND PURPOSE.

    (a) FINDINGS- The Congress finds that--

      (1) a modern infrastructure, including energy-efficient housing, electricity, telecommunications, bulk fuel, wastewater and potable water service, is a necessary ingredient of a modern society and development of a prosperous economy;

      (2) the Nation's rural and remote communities face critical social, economic and environmental problems, arising in significant measure from the high cost of infrastructure development in sparsely populated and remote areas, that are not adequately addressed by existing Federal assistance programs;

      (3) in the past, Federal assistance has been instrumental in establishing electric and other utility service in many developing regions of the Nation, and that Federal assistance continues to be appropriate to ensure that electric and other utility systems in rural areas conform with modern standards of safety, reliability, efficiency and environmental protection; and

      (4) the future welfare of the Nation and the well-being of its citizens depend on the establishment and maintenance of viable rural and remote communities as social, economic and political entities.

    (b) PURPOSE- The purpose of this subtitle is the development and maintenance of viable rural and remote communities through the provision of efficient housing, and reasonably priced and environmentally sound energy, water, wastewater, and bulk fuel, telecommunications and utility services to those communities that do not have those services or who currently bear costs of those services that are significantly above the national average.

SEC. 943. DEFINITIONS.

    As used in this subtitle:

      (1) The term `unit of general local government' means any city, county, town, township, parish, village, borough (organized or unorganized) or other general purpose political subdivision of a State, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic of Palau, the Virgin Islands, and American Samoa, a combination of such political subdivisions that is recognized by the Secretary; and the District of Columbia; or any other appropriate organization of citizens of a rural and remote community that the Secretary may identify.

      (2) The term `population' means total resident population based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

      (3) The term `Native American group' means any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native village, of the United States, which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Public Law 93-638) or was considered an eligible recipient under chapter 67 of title 31, United States Code, prior to the repeal of such chapter.

      (4) The term `Secretary' means the Secretary of Housing and Urban Development, the Secretary of Agriculture, the Secretary of the Interior or the Secretary of Energy, as appropriate.

      (5) The term `rural and remote community' means a unit of local general government or Native American group which is served by an electric utility that has 10,000 or less customers with an average retail cost per kilowatt hour of electricity that is equal to or greater than 150 percent of the average retail cost per kilowatt hour of electricity for all consumers in the United States, as determined by data provided by the Energy Information Administration of the Department of Energy.

      (6) The term `alternative energy sources' include nontraditional means of providing electrical energy, including, but not limited to, wind, solar, biomass, municipal solid waste, hydroelectric, geothermal and tidal power.

      (7) The term `average retail cost per kilowatt hour of electricity' has the same meaning as `average revenue per kilowatt hour of electricity' as defined by the Energy Information Administration of the Department of Energy.

SEC. 944. AUTHORIZATION OF APPROPRIATIONS.

    The Secretary is authorized to make grants to rural and remote communities to carry out activities in accordance with the provisions of this subtitle. For purposes of assistance under section 947, there are authorized to be appropriated $100,000,000 for each of fiscal years 2003 through 2009.

SEC. 945. STATEMENT OF ACTIVITIES AND REVIEW.

    (a) STATEMENT OF OBJECTIVES AND PROJECTED USE- Prior to the receipt in any fiscal year of a grant under section 947 by any rural and remote community, the grantee shall have prepared and submitted to the Secretary of the agency providing funding a final statement of rural and remote community development objectives and projected use of funds.

    (b) PUBLIC NOTICE- In order to permit public examination and appraisal of such statements, to enhance the public accountability of grantees, and to facilitate coordination of activities with different levels of government, the grantee shall in a timely manner--

      (1) furnish citizens information concerning the amount of funds available for rural and remote community development activities and the range of activities that may be undertaken;

      (2) publish a proposed statement in such manner to afford affected citizens an opportunity to examine its content and to submit comments on the proposed statement and on the community development performance of the grantee;

      (3) provide citizens with reasonable access to records regarding the past use of funds received under section 947 by the grantee; and

      (4) provide citizens with reasonable notice of, and opportunity to comment on, any substantial change proposed to be made in the use of funds received under section 947 from one eligible activity to another.

    The final statement shall be made available to the public, and a copy shall be furnished to the appropriate Secretary. Any final statement of activities may be modified or amended from time to time by the grantee in accordance with the same. Procedures required in this paragraph are for the preparation and submission of such statement.

    (c) PERFORMANCE AND EVALUATION REPORT- Each grantee shall submit to the appropriate Secretary, at a time determined by the Secretary, a performance and evaluation report, concerning the use of funds made available under section 947, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee's statement under subsection (a) and to the requirements of subsection (b). The grantee's report shall indicate its programmatic accomplishments, the nature of and reasons for any changes in the grantee's program objectives, and indications of how the grantee would change its programs as a result of its experiences.

    (d) RETENTION OF INCOME-

      (1) IN GENERAL- Any rural and remote community may retain any program income that is realized from any grant made by the Secretary under section 947 if--

        (A) such income was realized after the initial disbursement of the funds received by such unit of general local government under such section; and

        (B) such unit of general local government has agreed that it will utilize the program income for eligible rural and remote community development activities in accordance with the provisions of this title.

      (2) EXCEPTION- The Secretary may, by regulation, exclude from consideration as program income any amounts determined to be so small that compliance with the subsection creates an unreasonable administrative burden on the rural and remote community.

SEC. 946. ELIGIBLE ACTIVITIES.

    (a) ACTIVITIES INCLUDED- Eligible activities assisted under this subtitle may include only--

      (1) weatherization and other cost-effective energy-related repairs of homes and other buildings;

      (2) the acquisition, construction, repair, reconstruction, or installation of reliable and cost-efficient facilities for the generation, transmission or distribution of electricity, and telecommunications, for consumption in a rural and remote community or communities;

      (3) the acquisition, construction, repair, reconstruction, remediation or installation of facilities for the safe storage and efficient management of bulk fuel by rural and remote communities, and facilities for the distribution of such fuel to consumers in a rural or remote community;

      (4) facilities and training to reduce costs of maintaining and operating generation, distribution or transmission systems to a rural and remote community or communities;

      (5) the institution of professional management and maintenance services for electricity generation, transmission or distribution to a rural and remote community or communities;

      (6) the investigation of the feasibility of alternate energy sources for a rural and remote community or communities;

      (7) acquisition, construction, repair, reconstruction, operation, maintenance, or installation of facilities for water or wastewater service;

      (8) the acquisition or disposition of real property (including air rights, water rights, and other interests therein) for eligible rural and remote community development activities; and

      (9) activities necessary to develop and implement a comprehensive rural and remote development plan, including payment of reasonable administrative costs related to planning and execution of rural and remote community development activities.

    (b) ACTIVITIES UNDERTAKEN THROUGH ELECTRIC UTILITIES- Eligible activities may be undertaken either directly by the rural and remote community, or by the rural and remote community through local electric utilities.

SEC. 947. ALLOCATION AND DISTRIBUTION OF FUNDS.

    For each fiscal year, of the amount approved in an appropriation Act under section 903 for grants in any year, the Secretary shall distribute to each rural and remote community which has filed a final statement of rural and remote community development objectives and projected use of funds under section 945, an amount which shall be allocated among the rural and remote communities that filed a final statement of rural and remote community development objectives and projected use of funds under section 945 proportionate to the percentage that the average retail price per kilowatt hour of electricity for all classes of consumers in the rural and remote community exceeds the national average retail price per kilowatt hour for electricity for all consumers in the United States, as determined by data provided by the Department of Energy's Energy Information Administration. In allocating funds under this section, the Secretary shall give special consideration to those rural and remote communities that increase economies of scale through consolidation of services, affiliation and regionalization of eligible activities under this title.

SEC. 948. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

    Section 313 of the Rural Electrification Act of 1936 (7 U.S.C. 940c) is amended by adding after subsection (b) the following:

    `(c) RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS- The Secretary of Agriculture, in consultation with the Secretary of Energy and the Secretary of the Interior, may provide grants under this Act for the purpose of increasing energy efficiency, siting or upgrading transmission and distribution lines, or providing or modernizing electric facilities to--

      `(1) a unit of local government of a State or territory; or

      `(2) an Indian tribe or Tribal College or University as defined in section 316(b)(3) of the Higher Education Act (20 U.S.C. 1059c(b)(3)).

    `(d) GRANT CRITERIA- The Secretary shall make grants based on a determination of cost-effectiveness and most effective use of the funds to achieve the stated purposes of this section.

    `(e) PREFERENCE- In making grants under this section, the Secretary shall give a preference to renewable energy facilities.

    `(f) DEFINITION- For purposes of this section, the term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

    `(e) AUTHORIZATION- For the purpose of carrying out subsection (c), there are authorized to be appropriated to the Secretary $20,000,000 for each of the 7 fiscal years following the date of enactment of this subsection.'.

SEC. 949. ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated $5,000,000 for each of fiscal years 2003 through 2009 to the Denali Commission established by the Denali Commission Act of 1998 (42 U.S.C. 3121 note) for the purposes of funding the power cost equalization program.

SEC. 950. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

    (a) Findings; Purpose-

      (1) FINDINGS- Congress finds that--

        (A) a modern infrastructure, including affordable housing, wastewater and water service, and advanced technology capabilities is a necessary ingredient of a modern society and development of a prosperous economy with minimal environmental impacts;

        (B) the Nation's rural areas face critical social, economic, and environmental problems, arising in significant measure from the growing cost of infrastructure development in rural areas that suffer from low per capita income and high rates of outmigration and are not adequately addressed by existing Federal assistance programs; and

        (C) the future welfare of the Nation and the well-being of its citizens depend on the establishment and maintenance of viable rural areas as social, economic, and political entities.

      (2) PURPOSE- The purpose of this section is to provide for the development and maintenance of viable rural areas through the provision of affordable housing and community development assistance to eligible units of general local government and eligible Native American groups in rural areas with excessively high rates of outmigration and low per capita income levels.

    (b) DEFINITIONS- In this section:

      (1) ELIGIBLE UNIT OF GENERAL LOCAL GOVERNMENT- The term `eligible unit of general local government' means a unit of general local government that is the governing body of a rural recovery area.

      (2) ELIGIBLE INDIAN TRIBE- The term `eligible Indian tribe' means the governing body of an Indian tribe that is located in a rural recovery area.

      (3) GRANTEE- The term `grantee' means an eligible unit of general local government or eligible Indian tribe that receives a grant under this section.

      (4) NATIVE AMERICAN GROUP- The term `Native American group' means any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native village, of the United States, which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Public Law 93-638) or was considered an eligible recipient under chapter 67 of title 31, United States Code, prior to the repeal of such chapter.

      (5) RURAL RECOVERY AREA- The term `rural recovery area' means any geographic area represented by a unit of general local government or a Native American group--

        (A) the borders of which are not adjacent to a metropolitan area;

        (B) in which--

          (i) the population outmigration level equals or exceeds 1 percent over the most recent 5 year period, as determined by the Secretary of Housing and Urban Development; and

          (ii) the per capita income is less than that of the national nonmetropolitan average; and

        (C) that does not include a city with a population of more than 15,000.

      (6) UNIT OF GENERAL LOCAL GOVERNMENT-

        (A) IN GENERAL- The term `unit of general local government' means any city, county, town, township, parish, village, borough (organized or unorganized), or other general purpose political subdivision of a State; Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Puerto Rico, and American Samoa, or a general purpose political subdivision thereof; a combination of such political subdivisions that, except as provided in section 106(d)(4), is recognized by the Secretary; and the District of Columbia.

        (B) OTHER ENTITIES INCLUDED- The term also includes a State or a local public body or agency, community association, or other entity, that is approved by the Secretary for the purpose of providing public facilities or services to a new community.

      (7) SECRETARY- The term `Secretary' means the Secretary of Housing and Urban Development, the Secretary of Agriculture, the Secretary of the Interior or the Secretary of Energy, as appropriate.

    (c) GRANT AUTHORITY- The Secretary may make grants in accordance with this section to eligible units of general local government, Native American groups and eligible Indian tribes that meet the requirements of subsection (d) to carry out eligible activities described in subsection (f).

    (d) ELIGIBILITY REQUIREMENTS-

      (1) STATEMENT OF RURAL DEVELOPMENT OBJECTIVES- In order to receive a grant under this section for a fiscal year, an eligible unit of general local government, Native American group or eligible Indian tribe--

        (A) shall--

          (i) publish a proposed statement of rural development objectives and a description of the proposed eligible activities described in subsection (f) for which the grant will be used; and

          (ii) afford residents of the rural recovery area served by the eligible unit of general local government, Native American groups or eligible Indian tribe with an opportunity to examine the contents of the proposed statement and the proposed eligible activities published under clause (i), and to submit comments to the eligible unit of general local government, Native American group or eligible Indian tribe, as applicable, on the proposed statement and the proposed eligible activities, and the overall community development performance of the eligible unit of general local government, Native American groups or eligible Indian tribe, as applicable; and

        (B) based on any comments received under subparagraph (A)(ii), prepare and submit to the Secretary--

          (i) a final statement of rural development objectives;

          (ii) a description of the eligible activities described in subsection (f) for which a grant received under this section will be used; and

          (iii) a certification that the eligible unit of general local government, Native American groups or eligible Indian tribe, as applicable, will comply with the requirements of paragraph (2).

      (2) PUBLIC NOTICE AND COMMENT- In order to enhance public accountability and facilitate the coordination of activities among different levels of government, an eligible unit of general local government, Native American groups or eligible Indian tribe that receives a grant under this section shall, as soon as practicable after such receipt, provide the residents of the rural recovery area served by the eligible unit of general local government, Native American groups or eligible Indian tribe, as applicable, with--

        (A) a copy of the final statement submitted under paragraph (1)(B);

        (B) information concerning the amount made available under this section and the eligible activities to be undertaken with that amount;

        (C) reasonable access to records regarding the use of any amounts received by the eligible unit of general local government, Native American groups or eligible Indian tribe under this section in any preceding fiscal year; and

        (D) reasonable notice of, and opportunity to comment on, any substantial change proposed to be made in the use of amounts received under this section from one eligible activity to another.

    (e) DISTRIBUTION OF GRANTS-

      (1) IN GENERAL- In each fiscal year, the Secretary shall distribute to each eligible unit of general local government, Native American groups and eligible Indian tribe that meets the requirements of subsection (d)(1) a grant in an amount described in paragraph (2).

      (2) AMOUNT- Of the total amount made available to carry out this section in each fiscal year, the Secretary shall distribute to each grantee the amount equal to the greater of--

        (A) the pro rata share of the grantee, as determined by the Secretary, based on the combined annual population outmigration level (as determined by the Secretary of Housing and Urban Development) and the per capita income for the rural recovery area served by the grantee; or

        (B) $200,000.

    (f) ELIGIBLE ACTIVITIES- Each grantee shall use amounts received under this section for one or more of the following eligible activities, which may be undertaken either directly by the grantee, or by any local economic development corporation, regional planning district, nonprofit community development corporation, or statewide development organization authorized by the grantee--

      (1) the acquisition, construction, repair, reconstruction, operation, maintenance, or installation of facilities for water and wastewater service or any other infrastructure needs determined to be critical to the further development or improvement of a designated industrial park;

      (2) the acquisition or disposition of real property (including air rights, water rights, and other interests therein) for rural community development activities;

      (3) the development of telecommunications infrastructure within a designated industrial park that encourages high technology business development in rural areas;

      (4) activities necessary to develop and implement a comprehensive rural development plan, including payment of reasonable administrative costs related to planning and execution of rural development activities; or

      (5) affordable housing initiatives.

    (g) PERFORMANCE AND EVALUATION REPORT-

      (1) IN GENERAL- Each grantee shall annually submit to the appropriate Secretary a performance and evaluation report, concerning the use of amounts received under this section.

      (2) CONTENTS- Each report submitted under paragraph (1) shall include a description of--

        (A) the eligible activities carried out by the grantee with amounts received under this section, and the degree to which the grantee has achieved the rural development objectives included in the final statement submitted under subsection (d)(1);

        (B) the nature of and reasons for any change in the rural development objectives or the eligible activities of the grantee after submission of the final statement under subsection (d)(1); and

        (C) any manner in which the grantee would change the rural development objectives of the grantee as a result of the experience of the grantee in administering amounts received under this section.

    (h) RETENTION OF INCOME- A grantee may retain any income that is realized from the grant, if--

      (1) the income was realized after the initial disbursement of amounts to the grantee under this section; and

      (2) the--

        (A) grantee agrees to utilize the income for one or more eligible activities; or

        (B) amount of the income is determined by the Secretary to be so small that compliance with subparagraph (A) would create an unreasonable administrative burden on the grantee.

    (i) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $100,000,000 for each of fiscal years 2003 through 2009.

DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

TITLE X--NATIONAL CLIMATE CHANGE POLICY

Subtitle A--Sense of Congress

SEC. 1001. SENSE OF CONGRESS ON CLIMATE CHANGE.

    (a) FINDINGS- The Congress makes the following findings:

      (1) Evidence continues to build that increases in atmospheric concentrations of man-made greenhouse gases are contributing to global climate change.

      (2) The Intergovernmental Panel on Climate Change (IPCC) has concluded that `there is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities' and that the Earth's average temperature can be expected to rise between 2.5 and 10.4 degrees Fahrenheit in this century.

      (3) The National Academy of Sciences confirmed the findings of the IPCC, stating that `the IPCC's conclusion that most of the observed warming of the last 50 years is likely to have been due to the increase of greenhouse gas concentrations accurately reflects the current thinking of the scientific community on this issue' and that `there is general agreement that the observed warming is real and particularly strong within the past twenty years'. The National Academy of Sciences also noted that `because there is considerable uncertainty in current understanding of how the climate system varies naturally and reacts to emissions of greenhouse gases and aerosols, current estimates of the magnitude of future warming should be regarded as tentative and subject to future adjustments upward or downward'.

      (4) The IPCC has stated that in the last 40 years, the global average sea level has risen, ocean heat content has increased, and snow cover and ice extent have decreased, which threatens to inundate low-lying island nations and coastal regions throughout the world.

      (5) In October 2000, a United States Government report found that global climate change may harm the United States by altering crop yields, accelerating sea-level rise, and increasing the spread of tropical infectious diseases.

      (6) In 1992, the United States ratified the United Nations Framework Convention on Climate Change (UNFCCC), the ultimate objective of which is the `stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner'.

      (7) The UNFCCC stated in part that the Parties to the Convention are to implement policies `with the aim of returning . . . to their 1990 levels anthropogenic emissions of carbon dioxide and other greenhouse gases' under the principle that `policies and measures . . . should be appropriate for the specific conditions of each Party and should be integrated with national development programmes, taking into account that economic development is essential for adopting measures to address climate change'.

      (8) There is a shared international responsibility to address this problem, as industrial nations are the largest historic and current emitters of greenhouse gases and developing nations' emissions will significantly increase in the future.

      (9) The UNFCCC further stated that `developed country Parties should take the lead in combating climate change and the adverse effects thereof', as these nations are the largest historic and current emitters of greenhouse gases. The UNFCCC also stated that `steps required to understand and address climate change will be environmentally, socially and economically most effective if they are based on relevant scientific, technical and economic considerations and continually re-evaluated in the light of new findings in these areas'.

      (10) Senate Resolution 98 of the One Hundred Fifth Congress, which expressed that developing nations must also be included in any future, binding climate change treaty and such a treaty must not result in serious harm to the United States economy, should not cause the United States to abandon its shared responsibility to help reduce the risks of climate change and its impacts. Future international efforts in this regard should focus on recognizing the equitable responsibilities for addressing climate change by all nations, including commitments by the largest developing country emitters in a future, binding climate change treaty.

      (11) It is the position of the United States that it will not interfere with the plans of any nation that chooses to ratify and implement the Kyoto Protocol to the UNFCCC.

      (12) American businesses need to know how governments worldwide will address the risks of climate change.

      (13) The United States benefits from investments in the research, development and deployment of a range of clean energy and efficiency technologies that can reduce the risks of climate change and its impacts and that can make the United States economy more productive, bolster energy security, create jobs, and protect the environment.

    (b) SENSE OF CONGRESS- It is the sense of the United States Congress that the United States should demonstrate international leadership and responsibility in reducing the health, environmental, and economic risks posed by climate change by--

      (1) taking responsible action to ensure significant and meaningful reductions in emissions of greenhouse gases from all sectors;

      (2) creating flexible international and domestic mechanisms, including joint implementation, technology deployment, tradable credits for emissions reductions and carbon sequestration projects that will reduce, avoid, and sequester greenhouse gas emissions; and

      (3) participating in international negotiations, including putting forth a proposal to the Conference of the Parties, with the objective of securing United States participation in a future binding climate change Treaty in a manner that is consistent with the environmental objectives of the UNFCCC, that protects the economic interests of the United States, and recognizes the shared international responsibility for addressing climate change, including developing country participation.

Subtitle B--Climate Change Strategy

SEC. 1011. SHORT TITLE.

    This subtitle may be cited as the `Climate Change Strategy and Technology Innovation Act of 2002'.

SEC. 1012. DEFINITIONS.

    In this subtitle:

      (1) CLIMATE-FRIENDLY TECHNOLOGY- The term `climate-friendly technology' means any energy supply or end-use technology that, over the life of the technology and compared to similar technology in commercial use as of the date of enactment of this Act--

        (A) results in reduced emissions of greenhouse gases;

        (B) may substantially lower emissions of other pollutants; and

        (C) may generate substantially smaller or less hazardous quantities of solid or liquid waste.

      (2) DEPARTMENT- The term `Department' means the Department of Energy.

      (3) DEPARTMENT OFFICE- The term `Department Office' means the Office of Climate Change Technology of the Department established by section 1015(a).

      (4) FEDERAL AGENCY- The term `Federal agency' has the meaning given the term `agency' in section 551 of title 5, United States Code.

      (5) GREENHOUSE GAS- The term `greenhouse gas' means--

        (A) an anthropogenic gaseous constituent of the atmosphere (including carbon dioxide, methane, nitrous oxide, chlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and tropospheric ozone) that absorbs and re-emits infrared radiation and influences climate; and

        (B) an anthropogenic aerosol (such as black soot) that absorbs solar radiation and influences climate.

      (6) INTERAGENCY TASK FORCE- The term `Interagency Task Force' means the Interagency Task Force established under section 1014(e).

      (7) KEY ELEMENT- The term `key element', with respect to the Strategy, means--

        (A) definition of interim emission mitigation levels, that, coupled with specific mitigation approaches and after taking into account actions by other nations (if any), would result in stabilization of greenhouse gas concentrations;

        (B) technology development, including--

          (i) a national commitment to double energy research and development by the United States public and private sectors; and

          (ii) in carrying out such research and development, a national commitment to provide a high degree of emphasis on bold, breakthrough technologies that will make possible a profound transformation of the energy, transportation, industrial, agricultural, and building sectors of the United States;

        (C) climate adaptation research that focuses on actions necessary to adapt to climate change--

          (i) that may have already occurred; or

          (ii) that may occur under future climate change scenarios;

        (D) climate science research that--

          (i) builds on the substantial scientific understanding of climate change that exists as of the date of enactment of this subtitle; and

          (ii) focuses on reducing the remaining scientific, technical, and economic uncertainties to aid in the development of sound response strategies.

      (8) LONG-TERM GOAL OF THE STRATEGY- The term `long-term goal of the Strategy' means the long-term goal in section 1013(a)(1).

      (9) MITIGATION- The term `mitigation' means actions that reduce, avoid, or sequester greenhouse gases.

      (10) NATIONAL ACADEMY OF SCIENCES- The term `National Academy of Sciences' means the National Academy of Sciences, the National Academy of Engineering, the Institute of Medicine, and the National Research Council.

      (11) QUALIFIED INDIVIDUAL-

        (A) IN GENERAL- The term `qualified individual' means an individual who has demonstrated expertise and leadership skills to draw on other experts in diverse fields of knowledge that are relevant to addressing the climate change challenge.

        (B) FIELDS OF KNOWLEDGE- The fields of knowledge referred to in subparagraph (A) are--

          (i) the science of climate change and its impacts;

          (ii) energy and environmental economics;

          (iii) technology transfer and diffusion;

          (iv) the social dimensions of climate change;

          (v) climate change adaptation strategies;

          (vi) fossil, nuclear, and renewable energy technology;

          (vii) energy efficiency and energy conservation;

          (viii) energy systems integration;

          (ix) engineered and terrestrial carbon sequestration;

          (x) transportation, industrial, and building sector concerns;

          (xi) regulatory and market-based mechanisms for addressing climate change;

          (xii) risk and decision analysis;

          (xiii) strategic planning; and

          (xiv) the international implications of climate change strategies.

      (12) SECRETARY- The term `Secretary' means the Secretary of Energy.

      (13) STABILIZATION OF GREENHOUSE GAS CONCENTRATIONS- The term `stabilization of greenhouse gas concentrations' means the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, recognizing that such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner, as contemplated by the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.

      (14) STRATEGY- The term `Strategy' means the National Climate Change Strategy developed under section 1013.

      (15) WHITE HOUSE OFFICE- The term `White House Office' means the Office of National Climate Change Policy established by section 1014(a).

SEC. 1013. NATIONAL CLIMATE CHANGE STRATEGY.

    (a) IN GENERAL- The President, through the director of the White House Office and in consultation with the Interagency Task Force, shall develop a National Climate Change Strategy, which shall--

      (1) have the long-term goal of stabilization of greenhouse gas concentrations through actions taken by the United States and other nations;

      (2) recognize that accomplishing the long-term goal of the Strategy will take from many decades to more than a century, but acknowledging that significant actions must begin in the near term;

      (3) incorporate the four key elements;

      (4) be developed on the basis of an examination of a broad range of emissions levels and dates for achievement of those levels (including those evaluated by the Intergovernmental Panel on Climate Change and those consistent with United States treaty commitments) that, after taking into account actions by other nations, would achieve the long-term goal of the Strategy;

      (5) consider the broad range of activities and actions that can be taken by United States entities to reduce, avoid, or sequester greenhouse gas emissions both within the United States and in other nations through the use of market mechanisms, which may include, but not be limited to, mitigation activities, terrestrial sequestration, earning offsets through carbon capture or project-based activities, trading of emissions credits in domestic and international markets, and the application of the resulting credits from any of the above within the United States;

      (6) minimize any adverse short-term and long-term social, economic, national security, and environmental impacts, including ensuring that the strategy is developed in an economically and environmentally sound manner;

      (7) incorporate mitigation approaches leading to the development and deployment of advanced technologies and practices that will reduce, avoid, or sequester greenhouse gas emissions;

      (8) be consistent with the goals of energy, transportation, industrial, agricultural, forestry, environmental, economic, and other relevant policies of the United States;

      (9) take into account--

        (A) the diversity of energy sources and technologies;

        (B) supply-side and demand-side solutions; and

        (C) national infrastructure, energy distribution, and transportation systems;

      (10) be based on an evaluation of a wide range of approaches for achieving the long-term goal of the Strategy, including evaluation of--

        (A) a variety of cost-effective Federal and State policies, programs, standards, and incentives;

        (B) policies that integrate and promote innovative, market-based solutions in the United States and in foreign countries; and

        (C) participation in other international institutions, or in the support of international activities, that are established or conducted to achieve the long-term goal of the Strategy;

      (11) in the final recommendations of the Strategy--

        (A) emphasize policies and actions that achieve the long-term goal of the Strategy; and

        (B) provide specific recommendations concerning--

          (i) measures determined to be appropriate for short-term implementation, giving preference to cost-effective and technologically feasible measures that will--

            (I) produce measurable net reductions in United States emissions, compared to expected trends, that lead toward achievement of the long-term goal of the Strategy; and

            (II) minimize any adverse short-term and long-term economic, environmental, national security, and social impacts on the United States;

          (ii) the development of technologies that have the potential for long-term implementation--

            (I) giving preference to technologies that have the potential to reduce significantly the overall cost of achieving the long-term goal of the Strategy; and

            (II) considering a full range of energy sources, energy conversion and use technologies, and efficiency options;

          (iii) such changes in institutional and technology systems are necessary to adapt to climate change in the short-term and the long-term;

          (iv) such review, modification, and enhancement of the scientific, technical, and economic research efforts of the United States, and improvements to the data resulting from research, as are appropriate to improve the accuracy of predictions concerning climate change and the economic and social costs and opportunities relating to climate change; and

          (v) changes that should be made to project and grant evaluation criteria under other Federal research and development programs so that those criteria do not inhibit development of climate-friendly technologies;

      (12) recognize that the Strategy is intended to guide the Nation's effort to address climate change, but it shall not create a legal obligation on the part of any person or entity other than the duties of the Director of the White House Office and Interagency Task Force in the development of the Strategy;

      (13) have a scope that considers the totality of United States public, private, and public-private sector actions that bear on the long-term goal;

      (14) be developed in a manner that provides for meaningful participation by, and consultation among, Federal, State, tribal, and local government agencies, nongovernmental organizations, academia, scientific bodies, industry, the public, and other interested parties in accordance with subsections (b)(3)(C)(iv)(II) and (e)(3)(B)(ii) of section 1014;

      (15) address how the United States should engage State, tribal, and local governments in developing and carrying out a response to climate change;

      (16) promote, to the maximum extent practicable, public awareness, outreach, and information-sharing to further the understanding of the full range of climate change-related issues;

      (17) provide a detailed explanation of how the measures recommended by the Strategy will ensure that they do not result in serious harm to the economy of the United States;

      (18) provide a detailed explanation of how the measures recommended by the Strategy will achieve its long-term goal;

      (19) include any recommendations for legislative and administrative actions necessary to implement the Strategy;

      (20) serve as a framework for climate change actions by all Federal agencies;

      (21) recommend which Federal agencies are, or should be, responsible for the various aspects of implementation of the Strategy and any budgetary implications;

      (22) address how the United States should engage foreign governments in developing an international response to climate change; and

      (23) incorporate initiatives to open markets and promote the deployment of a range of climate-friendly technologies developed in the United States and abroad.

    (b) Submission to Congress- Not later than 1 year after the date of enactment of this section, the President, through the Interagency Task Force and the Director, shall submit to Congress the Strategy, in the form of a report that includes--

      (1) a description of the Strategy and its goals, including how the Strategy addresses each of the 4 key elements;

      (2) an inventory and evaluation of Federal programs and activities intended to carry out the Strategy;

      (3) a description of how the Strategy will serve as a framework of climate change response actions by all Federal agencies, including a description of coordination mechanisms and interagency activities;

      (4) evidence that the Strategy is consistent with other energy, transportation, industrial, agricultural, forestry, environmental, economic, and other relevant policies of the United States;

      (5) a description of provisions in the Strategy that ensure that it minimizes any adverse short-term and long-term social, economic, national security, and environmental impacts, including ensuring that the Strategy is developed in an economically and environmentally sound manner;

      (6) evidence that the Strategy has been developed in a manner that provides for participation by, and consultation among, Federal, State, tribal, and local government agencies, nongovernmental organizations, academia, scientific bodies, industry, the public, and other interested parties;

      (7) a description of Federal activities that promote, to the maximum extent practicable, public awareness, outreach, and information-sharing to further the understanding of the full range of climate change-related issues; and

      (8) recommendations for legislative or administrative changes to Federal programs or activities implemented to carry out this Strategy, in light of new knowledge of climate change and its impacts and costs or benefits, or technological capacity to improve mitigation or adaption activities.

    (c) Updates- Not later than 4 years after the date of submission of the Strategy to Congress under subsection (b), and at the end of each 4-year period thereafter, the President shall submit to Congress an updated version of the Strategy.

    (d) Progress Reports- Not later than 1 year after the date of submission of the Strategy to Congress under subsection (b), and annually thereafter at the time that the President submits to the Congress the budget of the United States Government under section 1105 of title 31, United States Code, the President shall submit to Congress a report that--

      (1) describes the Strategy, its goals, and the Federal programs and activities intended to carry out the Strategy through technological, scientific, mitigation, and adaptation activities;

      (2) evaluates the Federal programs and activities implemented as part of this Strategy against the goals and implementation dates outlined in the Strategy;

      (3) assesses the progress in implementation of the Strategy;

      (4) incorporates the technology program reports required pursuant to section 1015(a)(3) and subsections (d) and (e) of section 1321;

      (5) describes any changes to Federal programs or activities implemented to carry out this Strategy, in light of new knowledge of climate change and its impacts and costs or benefits, or technological capacity to improve mitigation or adaptation activities;

      (6) describes all Federal spending on climate change for the current fiscal year and each of the 5 years previous; categorized by Federal agency and program function (including scientific research, energy research and development, regulation, education, and other activities);

      (7) estimates the budgetary impact for the current fiscal year and each of the 5 years previous of any Federal tax credits, tax deductions or other incentives claimed by taxpayers that are directly or indirectly attributable to greenhouse gas emissions reduction activities;

      (8) estimates the amount, in metric tons, of net greenhouse gas emissions reduced, avoided, or sequestered directly or indirectly as a result of the implementation of the Strategy;

      (9) evaluates international research and development and market-based activities and the mitigation actions taken by the United States and other nations to achieve the long-term goal of the Strategy; and

      (10) makes recommendations for legislative or administrative actions or adjustments that will accelerate progress towards meeting the near-term and long-term goals contained in the Strategy.

    (e) NATIONAL ACADEMY OF SCIENCES REVIEW-

      (1) IN GENERAL- Not later than 90 days after the date of publication of the Strategy under subsection (b) and each update under subsection (c), the Director of the National Science Foundation, on behalf of the Director of the White House Office and the Interagency Task Force, shall enter into appropriate arrangements with the National Academy of Sciences to conduct a review of the Strategy or update.

      (2) CRITERIA- The review by the National Academy of Sciences shall evaluate the goals and recommendations contained in the Strategy or update, taking into consideration--

        (A) the adequacy of effort and the appropriateness of focus of the totality of all public, private, and public-private sector actions of the United States with respect to the Strategy, including the four key elements;

        (B) the adequacy of the budget and the effectiveness with which each Federal agency is carrying out its responsibilities;

        (C) current scientific knowledge regarding climate change and its impacts;

        (D) current understanding of human social and economic responses to climate change, and responses of natural ecosystems to climate change;

        (E) advancements in energy technologies that reduce, avoid, or sequester greenhouse gases or otherwise mitigate the risks of climate change;

        (F) current understanding of economic costs and benefits of mitigation or adaptation activities;

        (G) the existence of alternative policy options that could achieve the Strategy goals at lower economic, environmental, or social cost; and

        (H) international activities and the actions taken by the United States and other nations to achieve the long-term goal of the Strategy.

      (3) REPORT- Not later than 1 year after the date of submittal to the Congress of the Strategy or update, as appropriate, the National Academy of Sciences shall prepare and submit to the Congress and the President a report concerning the results of its review, along with any recommendations as appropriate. Such report shall also be made available to the public.

      (4) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this subsection, there are authorized to be appropriated to the National Science Foundation such sums as may be necessary.

SEC. 1014. OFFICE OF NATIONAL CLIMATE CHANGE POLICY.

    (a) ESTABLISHMENT-

      (1) IN GENERAL- There is established, within the Executive Office of the President, the Office of National Climate Change Policy.

      (2) FOCUS- The White House Office shall have the focus of achieving the long-term goal of the Strategy while minimizing adverse short-term and long-term economic and social impacts.

      (3) DUTIES- Consistent with paragraph (2), the White House Office shall--

        (A) establish policies, objectives, and priorities for the Strategy;

        (B) in accordance with subsection (d), establish the Interagency Task Force to serve as the primary mechanism through which the heads of Federal agencies shall assist the Director of the White House Office in developing and implementing the Strategy;

        (C) to the maximum extent practicable, ensure that the Strategy is based on objective, quantitative analysis, drawing on the analytical capabilities of Federal and State agencies, especially the Department Office;

        (D) advise the President concerning necessary changes in organization, management, budgeting, and personnel allocation of Federal agencies involved in climate change response activities; and

        (E) advise the President and notify a Federal agency if the policies and discretionary programs of the agency are not well aligned with, or are not contributing effectively to, the long-term goal of the Strategy.

    (b) DIRECTOR OF THE WHITE HOUSE OFFICE-

      (1) IN GENERAL- The White House Office shall be headed by a Director, who shall report directly to the President, and shall consult with the appropriate economic, environmental, national security, domestic policy, science and technology and other offices with the Executive Office of the President.

      (2) APPOINTMENT- The Director of the White House Office shall be a qualified individual appointed by the President, by and with the advice and consent of the Senate.

      (3) DUTIES OF THE DIRECTOR OF THE WHITE HOUSE OFFICE-

        (A) STRATEGY- In accordance with section 1013, the Director of the White House Office shall coordinate the development and updating of the Strategy.

        (B) INTERAGENCY TASK FORCE- The Director of the White House Office shall serve as Chair of the Interagency Task Force.

        (C) ADVISORY DUTIES-

          (i) ENERGY, ECONOMIC, ENVIRONMENTAL, TRANSPORTATION, INDUSTRIAL, AGRICULTURAL, BUILDING, FORESTRY, AND OTHER PROGRAMS- The Director of the White House Office, using an integrated perspective considering the totality of actions in the United States, shall advise the President and the heads of Federal agencies on--

            (I) the extent to which United States energy, economic, environmental, transportation, industrial, agricultural, forestry, building, and other relevant programs are capable of producing progress on the long-term goal of the Strategy; and

            (II) the extent to which proposed or newly created energy, economic, environmental, transportation, industrial, agricultural, forestry, building, and other relevant programs positively or negatively affect the ability of the United States to achieve the long-term goal of the Strategy.

          (ii) TAX, TRADE, AND FOREIGN POLICIES- The Director of the White House Office, using an integrated perspective considering the totality of actions in the United States, shall advise the President and the heads of Federal agencies on--

            (I) the extent to which the United States tax policy, trade policy, and foreign policy are capable of producing progress on the long-term goal of the Strategy; and

            (II) the extent to which proposed or newly created tax policy, trade policy, and foreign policy positively or negatively affect the ability of the United States to achieve the long-term goal of the Strategy.

          (iii) INTERNATIONAL TREATIES- The Secretary of State, acting in conjunction with the Interagency Task Force and using the analytical tools available to the White House Office, shall provide to the Director of the White House Office an opinion that--

            (I) specifies, to the maximum extent practicable, the economic and environmental costs and benefits of any proposed international treaties or components of treaties that have an influence on greenhouse gas management; and

            (II) assesses the extent to which the treaties advance the long-term goal of the Strategy, while minimizing adverse short-term and long-term economic and social impacts and considering other impacts.

          (iv) CONSULTATION-

            (I) WITH MEMBERS OF INTERAGENCY TASK FORCE- To the extent practicable and appropriate, the Director of the White House Office shall consult with all members of the Interagency Task Force before providing advice to the President.

            (II) WITH OTHER INTERESTED PARTIES- The Director of the White House Office shall establish a process for obtaining the meaningful participation of Federal, State, tribal, and local government agencies, nongovernmental organizations, academia, scientific bodies, industry, the public, and other interested parties in the development and updating of the Strategy.

        (D) PUBLIC EDUCATION, AWARENESS, OUTREACH, AND INFORMATION-SHARING- The Director of the White House Office, to the maximum extent practicable, shall promote public awareness, outreach, and information-sharing to further the understanding of the full range of climate change-related issues.

      (4) ANNUAL REPORTS- The Director of the White House Office, in consultation with the Interagency Task Force and other interested parties, shall prepare the annual reports for submission by the President to Congress under section 1013(d).

      (5) ANALYSIS- During development of the Strategy, preparation of the annual reports submitted under paragraph (4), and provision of advice to the President and the heads of Federal agencies, the Director of the White House Office shall place significant emphasis on the use of objective, quantitative analysis, taking into consideration any uncertainties associated with the analysis.

    (c) STAFF-

      (1) IN GENERAL- The Director of the White House Office shall employ a professional staff, including the staff appointed under paragraph (2), of not more than 25 individuals to carry out the duties of the White House Office.

      (2) Intergovernmental personnel and fellowships- The Director of the White House Office may use the authority provided by the Intergovernmental Personnel Act of 1970 (42 U.S.C. 4701 et seq.) and subchapter VI of chapter 33 of title 5, United States Code, and fellowships, to obtain staff from Federal agencies, academia, scientific bodies, or a National Laboratory (as that term is defined in section 1203), for appointments of a limited term.

    (d) Authorization of Appropriations-

      (1) Use of available appropriations- From funds made available to Federal agencies for the fiscal year in which this title is enacted, the President shall provide such sums as are necessary to carry out the duties of the White House Office under this title until the date on which funds are made available under paragraph (2).

      (2) Authorization of appropriations- There is authorized to be appropriated to the Executive Office of the President to carry out the duties of the White House Office under this subtitle, $5,000,000 for each of fiscal years 2003 through 2011, to remain available through September 30, 2011.

    (e) Interagency Task Force-

      (1) In general- The Director of the White House Office shall establish the Interagency Task Force.

      (2) Composition- The Interagency Task Force shall be composed of--

        (A) the Director of the White House Office, who shall serve as Chair;

        (B) the Secretary of State;

        (C) the Secretary of Energy;

        (D) the Secretary of Commerce;

        (E) the Secretary of Transportation;

        (F) the Secretary of Agriculture;

        (G) the Administrator of the Environmental Protection Agency;

        (H) the Chairman of the Council of Economic Advisers;

        (I) the Chairman of the Council on Environmental Quality;

        (J) the Director of the Office of Science and Technology Policy;

        (K) the Director of the Office of Management and Budget; and

        (L) the heads of such other Federal agencies as the President considers appropriate.

      (3) Strategy-

        (A) In general- The Interagency Task Force shall serve as the primary forum through which the Federal agencies represented on the Interagency Task Force jointly assist the Director of the White House Office in--

          (i) developing and updating the Strategy; and

          (ii) preparing annual reports under section 1013(d).

        (B) Required elements- In carrying out subparagraph (A), the Interagency Task Force shall--

          (i) take into account the long-term goal and other requirements of the Strategy specified in section 1013(a);

          (ii) consult with State, tribal, and local government agencies, nongovernmental organizations, academia, scientific bodies, industry, the public, and other interested parties; and

          (iii) build consensus around a Strategy that is based on strong scientific, technical, and economic analyses.

      (4) WORKING GROUPS- The Chair, in consultation with the members of the Interagency Task Force, may establish such topical working groups as are necessary to carry out the duties of the Interagency Task Force and implement the Strategy, taking into consideration the key elements of the Strategy. Such working groups may be comprised of members of the Interagency Task Force or their designees.

    (f) STAFF- In accordance with procedures established by the Chair of the Interagency Task Force, the Federal agencies represented on the Interagency Task Force shall provide staff from the agencies to support information, data collection, and analyses required by the Interagency Task Force.

    (g) HEARINGS- Upon request of the Chair, the Interagency Task Force may hold such hearings, meet and act at such times and places, take such testimony, and receive such evidence as the Interagency Task Force considers to be appropriate.

SEC. 1015. OFFICE OF CLIMATE CHANGE TECHNOLOGY.

    (a) ESTABLISHMENT-

      (1) IN GENERAL- There is established, within the Department, the Office of Climate Change Technology.

      (2) DUTIES- The Department Office shall--

        (A) manage an energy technology research and development program that directly supports the Strategy by--

          (i) focusing on high-risk, bold, breakthrough technologies that--

            (I) have significant promise of contributing to the long-term goal of the Strategy by--

(aa) mitigating the emissions of greenhouse gases;

(bb) removing and sequestering greenhouse gases from emission streams; or

(cc) removing and sequestering greenhouse gases from the atmosphere;

            (II) are not being addressed significantly by other Federal programs; and

            (III) would represent a substantial advance beyond technology available on the date of enactment of this subtitle;

          (ii) forging fundamentally new research and development partnerships among various Department, other Federal, and State programs, particularly between basic science and energy technology programs, in cases in which such partnerships have significant potential to affect the ability of the United States to achieve the long-term goal of the Strategy at the lowest possible cost;

          (iii) forging international research and development partnerships that are in the interests of the United States and make progress on achieving the long-term goal of the Strategy;

          (iv) making available, through monitoring, experimentation, and analysis, data that are essential to proving the technical and economic viability of technology central to addressing climate change; and

          (v) transferring research and development programs to other program offices of the Department once such a research and development program crosses the threshold of high-risk research and moves into the realm of more conventional technology development;

        (B) through active participation in the Interagency Task Force and utilization of the analytical capabilities of the Department Office, share analyses of alternative climate change strategies with other agencies represented on the Interagency Task Force to assist them in understanding--

          (i) the scale of the climate change challenge; and

          (ii) how actions of the Federal agencies on the Interagency Task Force positively or negatively contribute to climate change solutions;

        (C) provide analytical support to the White House Office, particularly in support of the development of the Strategy and associated progress reporting;

        (D) foster the development of tools, data, and capabilities to ensure that--

          (i) the United States has a robust capability for evaluating alternative climate change response scenarios; and

          (ii) the Department Office provides long-term analytical continuity during the terms of service of successive Presidents;

        (E) identify the total contribution of all Department programs to the Strategy; and

        (F) advise the Secretary on all aspects of climate change-related issues, including necessary changes in Department organization, management, budgeting, and personnel allocation in the programs involved in climate change response-related activities.

      (3) ANNUAL REPORTS- The Department Office shall prepare an annual report for submission by the Secretary to Congress and the White House Office that--

        (A) assesses progress toward meeting the goals of the energy technology research and development program described in this section;

        (B) assesses the activities of the Department Office;

        (C) assesses the contributions of all energy technology research and development programs of the Department (including science programs) to the long-term goal and other requirements of the Strategy; and

        (D) make recommendations for actions by the Department and other Federal agencies to address the components of technology development that are necessary to support the Strategy.

    (b) DIRECTOR OF THE DEPARTMENT OFFICE-

      (1) IN GENERAL- The Department Office shall be headed by a Director, who shall be a qualified individual appointed by the President, and who shall be compensated at a rate provided for level IV of the Executive Schedule under section 5315 of title 5, United States Code.

      (2) REPORTING- The Director of the Department Office shall report directly to the Under Secretary for Energy and Science.

      (3) VACANCIES- A vacancy in the position of the Director of the Department Office shall be filled in the same manner as the original appointment was made.

    (c) INTERGOVERNMENTAL PERSONNEL- The Department Office may use the authority provided by the Intergovernmental Personnel Act of 1970 (42 U.S.C. 4701 et seq.), subchapter VI of chapter 33 of title 5, United States Code, and other departmental personnel authorities, to obtain staff for appointments of a limited term.

    (d) RELATIONSHIP TO OTHER DEPARTMENT PROGRAMS- Each project carried out by the Department Office shall be--

      (1) initiated only after consultation with one or more other appropriate program offices of the Department that support research and development in the areas relating to the project;

      (2) managed by the Department Office; and

      (3) in the case of a project that reaches a sufficient level of maturity, with the concurrence of the Department Office and the appropriate office described in paragraph (1), transferred to the appropriate office, along with the funds necessary to continue the project to the point at which non-Federal funding can provide substantial support for the project.

    (e) COLLABORATION AND COST SHARING-

      (1) WITH OTHER FEDERAL AGENCIES- Projects supported by the Department Office may include participation of, and be supported by, other Federal agencies that have a role in the development, commercialization, or transfer of energy, transportation, industrial, agricultural, forestry, or other climate change-related technology.

      (2) WITH THE PRIVATE SECTOR-

        (A) IN GENERAL- Notwithstanding section 1403, the Department Office shall create an operating model that allows for collaboration, division of effort, and cost sharing with industry on individual climate change response projects.

        (B) REQUIREMENTS- Although cost sharing in some cases may be appropriate, the Department Office shall focus on long-term high-risk research and development and should not make industrial partnerships or cost sharing a requirement, if such a requirement would bias the activities of the Department Office toward incremental innovations.

        (C) REEVALUATION ON TRANSFER- At such time as any bold, breakthrough research and development program reaches a sufficient level of technological maturity such that the program is transferred to a program office of the Department other than the Department Office, the cost-sharing requirements and criteria applicable to the program shall be reevaluated.

        (D) PUBLICATION IN FEDERAL REGISTER- Each cost-sharing agreement entered into under this paragraph shall be published in the Federal Register.

    (f) ANALYSIS OF CLIMATE CHANGE STRATEGY-

      (1) IN GENERAL- The Department Office shall foster the development and application of advanced computational tools, data, and capabilities that, together with the capabilities of other Federal agencies, support integrated assessment of alternative climate change response scenarios and implementation of the Strategy.

      (2) PROGRAMS-

        (A) IN GENERAL- The Department Office shall--

          (i) develop and maintain core analytical competencies and complex, integrated computational modeling capabilities that, together with the capabilities of other Federal agencies, are necessary to support the design and implementation of the Strategy; and

          (ii) track United States and international progress toward the long-term goal of the Strategy.

        (B) INTERNATIONAL CARBON DIOXIDE SEQUESTRATION MONITORING AND DATA PROGRAM- In consultation with Federal, State, academic, scientific, private sector, nongovernmental, tribal, and international carbon capture and sequestration technology programs, the Department Office shall design and carry out an international carbon dioxide sequestration monitoring and data program to collect, analyze, and make available the technical and economic data to ascertain--

          (i) whether engineered sequestration and terrestrial sequestration will be acceptable technologies from regulatory, economic, and international perspectives;

          (ii) whether carbon dioxide sequestered in geological formations or ocean systems is stable and has inconsequential leakage rates on a geologic time-scale; and

          (iii) the extent to which forest, agricultural, and other terrestrial systems are suitable carbon sinks.

      (3) AREAS OF EXPERTISE-

        (A) IN GENERAL- The Department Office shall develop and maintain expertise in integrated assessment, modeling, and related capabilities necessary--

          (i) to understand the relationship between natural, agricultural, industrial, energy, and economic systems;

          (ii) to design effective research and development programs; and

          (iii) to assist with the development and implementation of the Strategy.

        (B) TECHNOLOGY TRANSFER AND DIFFUSION- The expertise described in clause (i) shall include knowledge of technology transfer and technology diffusion in United States and foreign markets.

      (4) DISSEMINATION OF INFORMATION- The Department Office shall ensure, to the maximum extent practicable, that technical and scientific knowledge relating to greenhouse gas emission reduction, avoidance, and sequestration is broadly disseminated through publications, fellowships, and training programs.

      (5) ASSESSMENTS- In a manner consistent with the Strategy, the Department shall conduct assessments of deployment of climate-friendly technology.

      (6) ANALYSIS- During development of the Strategy, annual reports submitted under subsection (a)(3), and advice to the Secretary, the Director of the Department Office shall place significant emphasis on the use of objective, quantitative analysis, taking into consideration any associated uncertainties.

    (g) AUTHORIZATION OF APPROPRIATIONS-

      (1) USE OF AVAILABLE APPROPRIATIONS- From funds made available to Federal agencies for the fiscal year in which this subtitle is enacted, the President shall provide such sums as are necessary to carry out the duties of the Department Office under this subtitle until the date on which funds are made available under paragraph (2).

      (2) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Secretary, to carry out the duties of the Department Office under this subtitle, $4,750,000,000 for the period of fiscal years 2003 through 2011, to remain available through September 30, 2011.

      (3) ADDITONAL AMOUNTS- Amounts authorized to be appropriated under this section shall be in addition to--

        (A) amounts made available to carry out the United States Global Change Research Program under the Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.); and

        (B) amounts made available under other provisions of law for energy research and development.

SEC. 1016. ADDITIONAL OFFICES AND ACTIVITIES.

    The Secretary of Agriculture, the Secretary of Transportation, the Secretary of Commerce, the Administrator of the Environmental Protection Agency, and the heads of other Federal agencies may establish such offices and carry out such activities, in addition to those established or authorized by this Act, as are necessary to carry out this Act.

Subtitle C--Science and Technology Policy

SEC. 1021. GLOBAL CLIMATE CHANGE IN THE OFFICE OF SCIENCE AND TECHNOLOGY POLICY.

    Section 101(b) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6601(b)) is amended--

      (1) by redesignating paragraphs (7) through (13) as paragraphs (8) through (14), respectively; and

      (2) by inserting after paragraph (6) the following:

      `(7) improving efforts to understand, assess, predict, mitigate, and respond to global climate change;'.

SEC. 1022. DIRECTOR OF OFFICE OF SCIENCE AND TECHNOLOGY POLICY FUNCTIONS.

    (a) ADVISE PRESIDENT ON GLOBAL CLIMATE CHANGE- Section 204(b)(1) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6613(b)(1)) is amended by inserting `global climate change,' after `to,'.

    (b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLIMATE CHANGE POLICY- Section 207 of that Act (42 U.S.C. 6616) is amended--

      (1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and

      (2) by inserting after subsection (a) the following:

    `(b) ADVISE DIRECTOR OF OFFICE OF NATIONAL CLIMATE CHANGE POLICY- In carrying out this Act, the Director shall advise the Director of the Office of National Climate Change Policy on matters concerning science and technology as they relate to global climate change.'.

Subtitle D--Miscellaneous Provisions

SEC. 1031. ADDITIONAL INFORMATION FOR REGULATORY REVIEW.

    In each case that an agency prepares and submits a Statement of Energy Effects pursuant to Executive Order 13211 of May 18, 2001 (relating to actions concerning regulations that significantly affect energy supply, distribution, or use), the agency shall also submit an estimate of the change in net annual greenhouse gas emissions resulting from the proposed significant energy action and any reasonable alternatives to the action.

SEC. 1032. GREENHOUSE GAS EMISSIONS FROM FEDERAL FACILITIES.

    (a) METHODOLOGY- Not later than 1 year after the date of enactment of this section, the Secretary of Energy, Secretary of Agriculture, Secretary of Commerce, and Administrator of the Environmental Protection Agency shall publish a jointly developed methodology for preparing estimates of annual net greenhouse gas emissions from all federally owned, leased, or operated facilities and emission sources, including stationary, mobile, and indirect emissions as may be determined to be feasible.

    (b) PUBLICATION- Not later than 18 months after the date of enactment of this section, and annually thereafter, the Secretary of Energy shall publish an estimate of annual net greenhouse gas emissions from all federally owned, leased, or operated facilities and emission sources, using the methodology published under subsection (a).

TITLE XI--NATIONAL GREENHOUSE GAS DATABASE

SEC. 1101. PURPOSE.

    The purpose of this title is to establish a greenhouse gas inventory, reductions registry, and information system that--

      (1) are complete, consistent, transparent, and accurate;

      (2) will create reliable and accurate data that can be used by public and private entities to design efficient and effective greenhouse gas emission reduction strategies; and

      (3) will acknowledge and encourage greenhouse gas emission reductions.

SEC. 1102. DEFINITIONS.

    In this title:

      (1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.

      (2) BASELINE- The term `baseline' means the historic greenhouse gas emission levels of an entity, as adjusted upward by the designated agency to reflect actual reductions that are verified in accordance with--

        (A) regulations promulgated under section 1104(c)(1); and

        (B) relevant standards and methods developed under this title.

      (3) DATABASE- The term `database' means the National Greenhouse Gas Database established under section 1104.

      (4) DESIGNATED AGENCY- The term `designated agency' means a department or agency to which responsibility for a function or program is assigned under the memorandum of agreement entered into under section 1103(a).

      (5) DIRECT EMISSIONS- The term `direct emissions' means greenhouse gas emissions by an entity from a facility that is owned or controlled by that entity.

      (6) ENTITY- The term `entity' means--

        (A) a person located in the United States; or

        (B) a public or private entity, to the extent that the entity operates in the United States.

      (7) FACILITY- The term `facility' means--

        (A) all buildings, structures, or installations located on any 1 or more contiguous or adjacent properties of an entity in the United States; and

        (B) a fleet of 20 or more motor vehicles under the common control of an entity.

      (8) GREENHOUSE GAS- The term `greenhouse gas' means--

        (A) carbon dioxide;

        (B) methane;

        (C) nitrous oxide;

        (D) hydrofluorocarbons;

        (E) perfluorocarbons;

        (F) sulfur hexafluoride; and

        (G) any other anthropogenic climate-forcing emissions with significant ascertainable global warming potential, as--

          (i) recommended by the National Academy of Sciences under section 1107(b)(3); and

          (ii) determined in regulations promulgated under section 1104(c)(1) (or revisions to the regulations) to be appropriate and practicable for coverage under this title.

      (9) INDIRECT EMISSIONS- The term `indirect emissions' means greenhouse gas emissions that--

        (A) are a result of the activities of an entity; but

        (B)(i) are emitted from a facility owned or controlled by another entity; and

        (ii) are not reported as direct emissions by the entity the activities of which resulted in the emissions.

      (10) REGISTRY- The term `registry' means the registry of greenhouse gas emission reductions established as a component of the database under section 1104(b)(2).

      (11) SEQUESTRATION-

        (A) IN GENERAL- The term `sequestration' means the capture, long-term separation, isolation, or removal of greenhouse gases from the atmosphere.

        (B) INCLUSIONS- The term `sequestration' includes--

          (i) soil carbon sequestration;

          (ii) agricultural and conservation practices;

          (iii) reforestation;

          (iv) forest preservation;

          (v) maintenance of an underground reservoir; and

          (vi) any other appropriate biological or geological method of capture, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator.

SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.

    (a) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the President, acting through the Director of the Office of National Climate Change Policy, shall direct the Secretary of Energy, the Secretary of Commerce, the Secretary of Agriculture, the Secretary of Transportation, and the Administrator to enter into a memorandum of agreement under which those heads of Federal agencies will--

      (1) recognize and maintain statutory and regulatory authorities, functions, and programs that--

        (A) are established as of the date of enactment of this Act under other law;

        (B) provide for the collection of data relating to greenhouse gas emissions and effects; and

        (C) are necessary for the operation of the database;

      (2)(A) distribute additional responsibilities and activities identified under this title to Federal departments or agencies in accordance with the missions and expertise of those departments and agencies; and

      (B) maximize the use of available resources of those departments and agencies; and

      (3) provide for the comprehensive collection and analysis of data on greenhouse gas emissions relating to product use (including the use of fossil fuels and energy-consuming appliances and vehicles).

    (b) MINIMUM REQUIREMENTS- The memorandum of agreement entered into under subsection (a) shall, at a minimum, retain the following functions for the designated agencies:

      (1) DEPARTMENT OF ENERGY- The Secretary of Energy shall be primarily responsible for developing, maintaining, and verifying the registry and the emission reductions reported under section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b)).

      (2) DEPARTMENT OF COMMERCE- The Secretary of Commerce shall be primarily responsible for the development of--

        (A) measurement standards for the monitoring of emissions; and

        (B) verification technologies and methods to ensure the maintenance of a consistent and technically accurate record of emissions, emission reductions, and atmospheric concentrations of greenhouse gases for the database.

      (3) ENVIRONMENTAL PROTECTION AGENCY- The Administrator shall be primarily responsible for--

        (A) emissions monitoring, measurement, verification, and data collection under this title and title IV (relating to acid deposition control) and title VIII of the Clean Air Act (42 U.S.C. 7651 et seq.), including mobile source emissions information from implementation of the corporate average fuel economy program under chapter 329 of title 49, United States Code; and

        (B) responsibilities of the Environmental Protection Agency relating to completion of the national inventory for compliance with the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.

      (4) DEPARTMENT OF AGRICULTURE- The Secretary of Agriculture shall be primarily responsible for--

        (A) developing measurement techniques for--

          (i) soil carbon sequestration; and

          (ii) forest preservation and reforestation activities; and

        (B) providing technical advice relating to biological carbon sequestration measurement and verification standards for measuring greenhouse gas emission reductions or offsets.

    (c) DRAFT MEMORANDUM OF AGREEMENT- Not later than 15 months after the date of enactment of this Act, the President, acting through the Director of the Office of National Climate Change Policy, shall publish in the Federal Register, and solicit comments on, a draft version of the memorandum of agreement described in subsection (a).

    (d) NO JUDICIAL REVIEW- The final version of the memorandum of agreement shall not be subject to judicial review.

SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.

    (a) ESTABLISHMENT- As soon as practicable after the date of enactment of this Act, the designated agencies, in consultation with the private sector and nongovernmental organizations, shall jointly establish, operate, and maintain a database, to be known as the `National Greenhouse Gas Database', to collect, verify, and analyze information on greenhouse gas emissions by entities.

    (b) NATIONAL GREENHOUSE GAS DATABASE COMPONENTS- The database shall consist of--

      (1) an inventory of greenhouse gas emissions; and

      (2) a registry of greenhouse gas emission reductions.

    (c) COMPREHENSIVE SYSTEM-

      (1) IN GENERAL- Not later than 2 years after the date of enactment of this Act, the designated agencies shall jointly promulgate regulations to implement a comprehensive system for greenhouse gas emissions reporting, inventorying, and reductions registration.

      (2) REQUIREMENTS- The designated agencies shall ensure, to the maximum extent practicable, that--

        (A) the comprehensive system described in paragraph (1) is designed to--

          (i) maximize completeness, transparency, and accuracy of information reported; and

          (ii) minimize costs incurred by entities in measuring and reporting greenhouse gas emissions; and

        (B) the regulations promulgated under paragraph (1) establish procedures and protocols necessary--

          (i) to prevent the reporting of some or all of the same greenhouse gas emissions or emission reductions by more than 1 reporting entity;

          (ii) to provide for corrections to errors in data submitted to the database;

          (iii) to provide for adjustment to data by reporting entities that have had a significant organizational change (including mergers, acquisitions, and divestiture), in order to maintain comparability among data in the database over time;

          (iv) to provide for adjustments to reflect new technologies or methods for measuring or calculating greenhouse gas emissions; and

          (v) to account for changes in registration of ownership of emission reductions resulting from a voluntary private transaction between reporting entities.

      (3) BASELINE IDENTIFICATION AND PROTECTION- Through regulations promulgated under paragraph (1), the designated agencies shall develop and implement a system that provides--

        (A) for the provision of unique serial numbers to identify the verified emission reductions made by an entity relative to the baseline of the entity;

        (B) for the tracking of the reductions associated with the serial numbers; and

        (C) that the reductions may be applied, as determined to be appropriate by any Act of Congress enacted after the date of enactment of this Act, toward a Federal requirement under such an Act that is imposed on the entity for the purpose of reducing greenhouse gas emissions.

SEC. 1105. GREENHOUSE GAS REDUCTION REPORTING.

    (a) IN GENERAL- An entity that participates in the registry shall meet the requirements described in subsection (b).

    (b) REQUIREMENTS-

      (1) IN GENERAL- The requirements referred to in subsection (a) are that an entity (other than an entity described in paragraph (2)) shall--

        (A) establish a baseline (including all of the entity's greenhouse gas emissions on an entity-wide basis); and

        (B) submit the report described in subsection (c)(1).

      (2) REQUIREMENTS APPLICABLE TO ENTITIES ENTERING INTO CERTAIN AGREEMENTS- An entity that enters into an agreement with a participant in the registry for the purpose of a carbon sequestration project shall not be required to comply with the requirements specified in paragraph (1) unless that entity is required to comply with the requirements by reason of an activity other than the agreement.

    (c) REPORTS-

      (1) REQUIRED REPORT- Not later than April 1 of the third calendar year that begins after the date of enactment of this Act, and not later than April 1 of each calendar year thereafter, subject to paragraph (3), an entity described in subsection (a) shall submit to each appropriate designated agency a report that describes, for the preceding calendar year, the entity-wide greenhouse gas emissions (as reported at the facility level), including--

        (A) the total quantity of each greenhouse gas emitted, expressed in terms of mass and in terms of the quantity of carbon dioxide equivalent;

        (B) an estimate of the greenhouse gas emissions from fossil fuel combusted by products manufactured and sold by the entity in the previous calendar year, determined over the average lifetime of those products; and

        (C) such other categories of emissions as the designated agency determines in the regulations promulgated under section 1104(c)(1) may be practicable and useful for the purposes of this title, such as--

          (i) direct emissions from stationary sources;

          (ii) indirect emissions from imported electricity, heat, and steam;

          (iii) process and fugitive emissions; and

          (iv) production or importation of greenhouse gases.

      (2) VOLUNTARY REPORTING- An entity described in subsection (a) may (along with establishing a baseline and reporting reductions under this section)--

        (A) submit a report described in paragraph (1) before the date specified in that paragraph for the purposes of achieving and commoditizing greenhouse gas reductions through use of the registry; and

        (B) submit to any designated agency, for inclusion in the registry, information that has been verified in accordance with regulations promulgated under section 1104(c)(1) and that relates to--

          (i) with respect to the calendar year preceding the calendar year in which the information is submitted, and with respect to any greenhouse gas emitted by the entity--

            (I) project reductions from facilities owned or controlled by the reporting entity in the United States;

            (II) transfers of project reductions to and from any other entity;

            (III) project reductions and transfers of project reductions outside the United States;

            (IV) other indirect emissions that are not required to be reported under paragraph (1); and

            (V) product use phase emissions;

          (ii) with respect to greenhouse gas emission reductions activities of the entity that have been carried out during or after 1990, verified in accordance with regulations promulgated under section 1104(c)(1), and submitted to 1 or more designated agencies before the date that is 4 years after the date of enactment of this Act, any greenhouse gas emission reductions that have been reported or submitted by an entity under--

            (I) section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b)); or

            (II) any other Federal or State voluntary greenhouse gas reduction program; and

          (iii) any project or activity for the reduction of greenhouse gas emissions or sequestration of a greenhouse gas that is carried out by the entity, including a project or activity relating to--

            (I) fuel switching;

            (II) energy efficiency improvements;

            (III) use of renewable energy;

            (IV) use of combined heat and power systems;

            (V) management of cropland, grassland, or grazing land;

            (VI) a forestry activity that increases forest carbon stocks or reduces forest carbon emissions;

            (VII) carbon capture and storage;

            (VIII) methane recovery;

            (IX) greenhouse gas offset investment; and

            (X) any other practice for achieving greenhouse gas reductions as recognized by 1 or more designated agencies.

      (3) EXEMPTIONS FROM REPORTING-

        (A) IN GENERAL- If the Director of the Office of National Climate Change Policy determines under section 1108(b) that the reporting requirements under paragraph (1) shall apply to all entities (other than entities exempted by this paragraph), regardless of participation or nonparticipation in the registry, an entity shall be required to submit reports under paragraph (1) only if, in any calendar year after the date of enactment of this Act--

          (i) the total greenhouse gas emissions of at least 1 facility owned by the entity exceeds 10,000 metric tons of carbon dioxide equivalent (or such greater quantity as may be established by a designated agency by regulation); or

          (ii)(I) the total quantity of greenhouse gases produced, distributed, or imported by the entity exceeds 10,000 metric tons of carbon dioxide equivalent (or such greater quantity as may be established by a designated agency by regulation); and

          (II) the entity is not a feedlot or other farming operation (as defined in section 101 of title 11, United States Code).

        (B) ENTITIES ALREADY REPORTING-

          (i) IN GENERAL- An entity that, as of the date of enactment of this Act, is required to report carbon dioxide emissions data to a Federal agency shall not be required to re-report that data for the purposes of this title.

          (ii) REVIEW OF PARTICIPATION- For the purpose of section 1108, emissions reported under clause (i) shall be considered to be reported by the entity to the registry.

      (4) PROVISION OF VERIFICATION INFORMATION BY REPORTING ENTITIES- Each entity that submits a report under this subsection shall provide information sufficient for each designated agency to which the report is submitted to verify, in accordance with measurement and verification methods and standards developed under section 1106, that the greenhouse gas report of the reporting entity--

        (A) has been accurately reported; and

        (B) in the case of each voluntary report under paragraph (2), represents--

          (i) actual reductions in direct greenhouse gas emissions--

            (I) relative to historic emission levels of the entity; and

            (II) net of any increases in--

(aa) direct emissions; and

(bb) indirect emissions described in paragraph (1)(C)(ii); or

          (ii) actual increases in net sequestration.

      (5) FAILURE TO SUBMIT REPORT- An entity that participates or has participated in the registry and that fails to submit a report required under this subsection shall be prohibited from including emission reductions reported to the registry in the calculation of the baseline of the entity in future years.

      (6) INDEPENDENT THIRD-PARTY VERIFICATION- To meet the requirements of this section and section 1106, a entity that is required to submit a report under this section may--

        (A) obtain independent third-party verification; and

        (B) present the results of the third-party verification to each appropriate designated agency.

      (7) AVAILABILITY OF DATA-

        (A) IN GENERAL- The designated agencies shall ensure, to the maximum extent practicable, that information in the database is--

          (i) published;

          (ii) accessible to the public; and

          (iii) made available in electronic format on the Internet.

        (B) EXCEPTION- Subparagraph (A) shall not apply in any case in which the designated agencies determine that publishing or otherwise making available information described in that subparagraph poses a risk to national security.

      (8) DATA INFRASTRUCTURE- The designated agencies shall ensure, to the maximum extent practicable, that the database uses, and is integrated with, Federal, State, and regional greenhouse gas data collection and reporting systems in effect as of the date of enactment of this Act.

      (9) ADDITIONAL ISSUES TO BE CONSIDERED- In promulgating the regulations under section 1104(c)(1) and implementing the database, the designated agencies shall take into consideration a broad range of issues involved in establishing an effective database, including--

        (A) the appropriate units for reporting each greenhouse gas;

        (B) the data and information systems and measures necessary to identify, track, and verify greenhouse gas emission reductions in a manner that will encourage the development of private sector trading and exchanges;

        (C) the greenhouse gas reduction and sequestration methods and standards applied in other countries, as applicable or relevant;

        (D) the extent to which available fossil fuels, greenhouse gas emissions, and greenhouse gas production and importation data are adequate to implement the database;

        (E) the differences in, and potential uniqueness of, the facilities, operations, and business and other relevant practices of persons and entities in the private and public sectors that may be expected to participate in the registry; and

        (F) the need of the registry to maintain valid and reliable information on baselines of entities so that, in the event of any future action by Congress to require entities, individually or collectively, to reduce greenhouse gas emissions, Congress will be able--

          (i) to take into account that information; and

          (ii) to avoid enacting legislation that penalizes entities for achieving and reporting reductions.

    (d) ANNUAL REPORT- The designated agencies shall jointly publish an annual report that--

      (1) describes the total greenhouse gas emissions and emission reductions reported to the database during the year covered by the report;

      (2) provides entity-by-entity and sector-by-sector analyses of the emissions and emission reductions reported;

      (3) describes the atmospheric concentrations of greenhouse gases; and

      (4) provides a comparison of current and past atmospheric concentrations of greenhouse gases.

SEC. 1106. MEASUREMENT AND VERIFICATION.

    (a) STANDARDS-

      (1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the designated agencies shall jointly develop comprehensive measurement and verification methods and standards to ensure a consistent and technically accurate record of greenhouse gas emissions, emission reductions, sequestration, and atmospheric concentrations for use in the registry.

      (2) REQUIREMENTS- The methods and standards developed under paragraph (1) shall address the need for--

        (A) standardized measurement and verification practices for reports made by all entities participating in the registry, taking into account--

          (i) protocols and standards in use by entities desiring to participate in the registry as of the date of development of the methods and standards under paragraph (1);

          (ii) boundary issues, such as leakage and shifted use;

          (iii) avoidance of double counting of greenhouse gas emissions and emission reductions; and

          (iv) such other factors as the designated agencies determine to be appropriate;

        (B) measurement and verification of actions taken to reduce, avoid, or sequester greenhouse gas emissions;

        (C) in coordination with the Secretary of Agriculture, measurement of the results of the use of carbon sequestration and carbon recapture technologies, including--

          (i) organic soil carbon sequestration practices; and

          (ii) forest preservation and reforestation activities that adequately address the issues of permanence, leakage, and verification;

        (D) such other measurement and verification standards as the Secretary of Commerce, the Secretary of Agriculture, the Administrator, and the Secretary of Energy determine to be appropriate; and

        (E) other factors that, as determined by the designated agencies, will allow entities to adequately establish a fair and reliable measurement and reporting system.

    (b) REVIEW AND REVISION- The designated agencies shall periodically review, and revise as necessary, the methods and standards developed under subsection (a).

    (c) PUBLIC PARTICIPATION- The Secretary of Commerce shall--

      (1) make available to the public for comment, in draft form and for a period of at least 90 days, the methods and standards developed under subsection (a); and

      (2) after the 90-day period referred to in paragraph (1), in coordination with the Secretary of Energy, the Secretary of Agriculture, and the Administrator, adopt the methods and standards developed under subsection (a) for use in implementing the database.

    (d) EXPERTS AND CONSULTANTS-

      (1) IN GENERAL- The designated agencies may obtain the services of experts and consultants in the private and nonprofit sectors in accordance with section 3109 of title 5, United States Code, in the areas of greenhouse gas measurement, certification, and emission trading.

      (2) AVAILABLE ARRANGEMENTS- In obtaining any service described in paragraph (1), the designated agencies may use any available grant, contract, cooperative agreement, or other arrangement authorized by law.

SEC. 1107. INDEPENDENT REVIEWS.

    (a) IN GENERAL- Not later than 5 years after the date of enactment of this Act, and every 3 years thereafter, the Comptroller General of the United States shall submit to Congress a report that--

      (1) describes the efficacy of the implementation and operation of the database; and

      (2) includes any recommendations for improvements to this title and programs carried out under this title--

        (A) to achieve a consistent and technically accurate record of greenhouse gas emissions, emission reductions, and atmospheric concentrations; and

        (B) to achieve the purposes of this title.

    (b) REVIEW OF SCIENTIFIC METHODS- The designated agencies shall enter into an agreement with the National Academy of Sciences under which the National Academy of Sciences shall--

      (1) review the scientific methods, assumptions, and standards used by the designated agencies in implementing this title;

      (2) not later than 4 years after the date of enactment of this Act, submit to Congress a report that describes any recommendations for improving--

        (A) those methods and standards; and

        (B) related elements of the programs, and structure of the database, established by this title; and

      (3) regularly review and update as appropriate the list of anthropogenic climate-forcing emissions with significant global warming potential described in section 1102(8)(G).

SEC. 1108. REVIEW OF PARTICIPATION.

    (a) IN GENERAL- Not later than 5 years after the date of enactment of this Act, the Director of the Office of National Climate Change Policy shall determine whether the reports submitted to the registry under section 1105(c)(1) represent less than 60 percent of the national aggregate anthropogenic greenhouse gas emissions.

    (b) INCREASED APPLICABILITY OF REQUIREMENTS- If the Director of the Office of National Climate Change Policy determines under subsection (a) that less than 60 percent of the aggregate national anthropogenic greenhouse gas emissions are being reported to the registry--

      (1) the reporting requirements under section 1105(c)(1) shall apply to all entities (except entities exempted under section 1105(c)(3)), regardless of any participation or nonparticipation by the entities in the registry; and

      (2) each entity shall submit a report described in section 1105(c)(1)--

        (A) not later than the earlier of--

          (i) April 30 of the calendar year immediately following the year in which the Director of the Office of National Climate Change Policy makes the determination under subsection (a); or

          (ii) the date that is 1 year after the date on which the Director of the Office of National Climate Change Policy makes the determination under subsection (a); and

        (B) annually thereafter.

    (c) RESOLUTION OF DISAPPROVAL- For the purposes of this section, the determination of the Director of the Office of National Climate Change Policy under subsection (a) shall be considered to be a major rule (as defined in section 804(2) of title 5, United States Code) subject to the congressional disapproval procedure under section 802 of title 5, United States Code.

SEC. 1109. ENFORCEMENT.

    If an entity that is required to report greenhouse gas emissions under section 1105(c)(1) or 1108 fails to comply with that requirement, the Attorney General may, at the request of the designated agencies, bring a civil action in United States district court against the entity to impose on the entity a civil penalty of not more than $25,000 for each day for which the entity fails to comply with that requirement.

SEC. 1110. REPORT ON STATUTORY CHANGES AND HARMONIZATION.

    Not later than 3 years after the date of enactment of this Act, the President shall submit to Congress a report that describes any modifications to this title or any other provision of law that are necessary to improve the accuracy or operation of the database and related programs under this title.

SEC. 1111. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary to carry out this title.

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