PL109-58 (EPAct 2005)

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119 STAT. 594

PUBLIC LAW 109–58—AUG. 8, 2005

Public Law 109–58
109th Congress
An Act
Aug. 8, 2005
[H.R. 6]
Energy Policy Act
of 2005.
42 USC 15801
note.

To ensure jobs for our future with secure, affordable, and reliable energy.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Energy Policy
Act of 2005’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I—ENERGY EFFICIENCY
Subtitle A—Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally funded projects
involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.
Subtitle B—Energy Assistance and State Programs
Sec. 121. Low-income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.
Subtitle C—Energy Efficient Products
Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised energy
conservation standards.
Subtitle D—Public Housing
Sec. 151. Public housing capital fund.

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 595

Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.
TITLE II—RENEWABLE ENERGY
Subtitle A—General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity from renewable energy resources on public lands.
Subtitle B—Geothermal Energy
Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions, rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.
Subtitle C—Hydroelectric
Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.
Subtitle D—Insular Energy
Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.
TITLE III—OIL AND GAS
Subtitle A—Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve and
other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.
Subtitle B—Natural Gas
Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.
Subtitle C—Production
Sec. 321. Outer Continental Shelf provisions.

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119 STAT. 596

PUBLIC LAW 109–58—AUG. 8, 2005

Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.
Subtitle D—Naval Petroleum Reserve
Sec. 331. Transfer of administrative jurisdiction and environmental remediation,
Naval Petroleum Reserve Numbered 2, Kern County, California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered 2, to
City of Taft, California.
Sec. 334. Revocation of land withdrawal.
Subtitle E—Production Incentives
Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.
Subtitle F—Access to Federal Lands
Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way across public
lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under Padre Island
National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.
Subtitle G—Miscellaneous
Sec. 381. Deadline for decision on appeals of consistency determination under the
Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental Shelf Lands
Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.
Subtitle H—Refinery Revitalization
Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.
TITLE IV—COAL
Subtitle A—Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 597

Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.
Subtitle B—Clean Power Projects
Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin coal.
Subtitle C—Coal and Related Programs
Sec. 421. Amendment of the Energy Policy Act of 1992.
Subtitle D—Federal Coal Leases
Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.
TITLE V—INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project and electrification.
Sec. 506. Energy efficiency in federally assisted housing.
TITLE VI—NUCLEAR MATTERS
Subtitle A—Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.
Subtitle B—General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power plants.
Sec. 635. Prohibition on assumption by United States Government of liability for
certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other arrangements.

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119 STAT. 598

PUBLIC LAW 109–58—AUG. 8, 2005

Subtitle C—Next Generation Nuclear Plant Project
Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.
Subtitle D—Nuclear Security
Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.
TITLE VII—VEHICLES AND FUELS
Subtitle A—Existing Programs
Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle purchasing
requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization initiative.
Sec. 707. Emergency exemption.
Subtitle B—Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
PART 1—HYBRID VEHICLES
Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.
PART 2—ADVANCED VEHICLES
Sec. 721. Pilot program.
Sec. 722. Reports to Congress.
Sec. 723. Authorization of appropriations.
PART 3—FUEL CELL BUSES
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C—Clean School Buses
Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.
Subtitle D—Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.
Subtitle E—Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and enforcement of
fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for automobiles.
Sec. 774. Update testing procedures.
Subtitle F—Federal and State Procurement
Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and hydrogen energy
systems.

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Sec. 783. Federal procurement of stationary, portable, and micro fuel cells.
Subtitle G—Diesel Emissions Reduction
Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.
TITLE VIII—HYDROGEN
Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.
TITLE IX—RESEARCH AND DEVELOPMENT
Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.
Subtitle A—Energy Efficiency
Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.
Subtitle B—Distributed Energy and Electric Energy Systems
Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration programs.
Sec. 925. Electric transmission and distribution programs.
Subtitle C—Renewable Energy
Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.
Subtitle D—Agricultural Biomass Research and Development Programs
Sec. 941. Amendments to the Biomass Research and Development Act of 2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.
Subtitle E—Nuclear Energy
Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.

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119 STAT. 600

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Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.
Subtitle F—Fossil Energy
Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.
Subtitle G—Science
Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.
Subtitle H—International Cooperation
Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.
Subtitle I—Research Administration and Operations
Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.
Subtitle J—Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Resources
Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.
TITLE X—DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.

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Sec. 1006. Improved coordination and management of civilian science and technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.
TITLE XI—PERSONNEL AND TRAINING
Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Educational programs in science and mathematics.
Sec. 1103. Training guidelines for nonnuclear electric energy industry personnel.
Sec. 1104. National Center for Energy Management and Building Technologies.
Sec. 1105. Improved access to energy-related scientific and technical careers.
Sec. 1106. National Power Plant Operations Technology and Educational Center.
TITLE XII—ELECTRICITY
Sec. 1201. Short title.
Subtitle A—Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B—Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.
Subtitle C—Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity mechanism.
Subtitle D—Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.
Subtitle E—Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale requirements.
Sec. 1254. Interconnection.
Subtitle F—Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G—Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.

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Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.
Subtitle H—Definitions
Sec. 1291. Definitions.
Subtitle I—Technical and Conforming Amendments
Sec. 1295. Conforming amendments.
Subtitle J—Economic Dispatch
Sec. 1298. Economic dispatch.
TITLE XIII—ENERGY POLICY TAX INCENTIVES
Sec. 1300. Short title; amendment to 1986 Code.
Subtitle A—Electricity Infrastructure
Sec. 1301. Extension and modification of renewable electricity production credit.
Sec. 1302. Application of section 45 credit to agricultural cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC restructuring
policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution control facilities in connection with plants first placed in service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning costs.
Sec. 1311. Five-year net operating loss carryover for certain losses.
Subtitle B—Domestic Fossil Fuel Security
Sec. 1321. Extension of credit for producing fuel from a nonconventional source for
facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid fuels.
Sec. 1324. Pass through to owners of deduction for capital costs incurred by small
refiner cooperatives in complying with Environmental Protection Agency
sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.
Subtitle C—Conservation and Energy Efficiency Provisions
Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and stationary
microturbine power plants.
Sec. 1337. Business solar investment tax credit.
Subtitle D—Alternative Motor Vehicles and Fuels Incentives
Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain refueling property.

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Subtitle E—Additional Energy Tax Incentives
Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.
Subtitle F—Revenue Raising Provisions
Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund financing
rate.
Sec. 1363. Modification of recapture rules for amortizable section 197 intangibles.
Sec. 1364. Clarification of tire excise tax.
TITLE XIV—MISCELLANEOUS
Subtitle A—In General
Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.
Subtitle B—Set America Free
Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.
TITLE XV—ETHANOL AND MOTOR FUELS
Subtitle A—General Provisions
Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.
Subtitle B—Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
Subtitle C—Boutique Fuels
Sec. 1541. Reducing the proliferation of boutique fuels.
TITLE XVI—CLIMATE CHANGE
Subtitle A—National Climate Change Technology Deployment
Sec. 1601. Greenhouse gas intensity reducing technology strategies.

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Subtitle B—Climate Change Technology Deployment in Developing Countries
Sec. 1611. Climate change technology deployment in developing countries.
TITLE XVII—INCENTIVES FOR INNOVATIVE TECHNOLOGIES
Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.
TITLE XVIII—STUDIES
Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail markets
for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in vehicle miles
traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development practices.
Sec. 1836. Resolution of Federal resource development conflicts in the Powder
River Basin.
Sec. 1837. National security review of international energy requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential hydropower facilities.
42 USC 15801.

SEC. 2. DEFINITIONS.

Except as otherwise provided, in this Act:
(1) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Energy.
(2) INSTITUTION OF HIGHER EDUCATION.—
(A) IN GENERAL.—The term ‘‘institution of higher education’’ has the meaning given the term in section 101(a)
of the Higher Education Act of 1065 (20 U.S.C. 1001(a)).
(B) INCLUSION.—The term ‘‘institution of higher education’’ includes an organization that—

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(i) is organized, and at all times thereafter operated, exclusively for the benefit of, to perform the
functions of, or to carry out the functions of one or
more organizations referred to in subparagraph (A);
and
(ii) is operated, supervised, or controlled by or
in connection with one or more of those organizations.
(3) NATIONAL LABORATORY.—The term ‘‘National Laboratory’’ means any of the following laboratories owned by the
Department:
(A) Ames Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Accelerator Laboratory.
(E) Idaho National Laboratory.
(F) Lawrence Berkeley National Laboratory.
(G) Lawrence Livermore National Laboratory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Laboratory.
(J) National Renewable Energy Laboratory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Laboratory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Savannah River National Laboratory.
(P) Stanford Linear Accelerator Center.
(Q) Thomas Jefferson National Accelerator Facility.
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Energy.
(5) SMALL BUSINESS CONCERN.—The term ‘‘small business
concern’’ has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).

TITLE I—ENERGY EFFICIENCY
Subtitle A—Federal Programs
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL
BUILDINGS.

(a) IN GENERAL.—Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by
adding at the end the following:
‘‘SEC. 552. 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 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—

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‘‘(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) ANNUAL REPORT.—The Architect of the Capitol 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) TABLE OF CONTENTS AMENDMENT.—The table of contents
of the National Energy Conservation Policy Act is amended by
adding at the end of the items relating to part 3 of title V the
following new item:
‘‘Sec. 552. Energy and water savings measures in congressional buildings.’’.

(c) REPEAL.—Section 310 of the Legislative Branch Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

(a) ENERGY REDUCTION GOALS.—
(1) AMENDMENT.—Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by
striking ‘‘its Federal buildings so that’’ and all that follows
through the end and inserting ‘‘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 2006 through 2015 is
reduced, as compared with the energy consumption per gross
square foot of the Federal buildings of the agency in fiscal
year 2003, by the percentage specified in the following table:
‘‘Fiscal Year

Percentage
reduction
2006 .............................................................................................
2
2007 .............................................................................................
4
2008 .............................................................................................
6
2009 .............................................................................................
8
2010 .............................................................................................
10
2011 .............................................................................................
12
2012 .............................................................................................
14
2013 .............................................................................................
16
2014 .............................................................................................
18
2015 .............................................................................................
20.’’.

(2) REPORTING BASELINE.—The energy reduction goals and
baseline established in paragraph (1) of section 543(a) of the

42 USC 8253
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119 STAT. 607

National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)),
as amended by this subsection, supersede all previous goals
and baselines under such paragraph, and related reporting
requirements.
(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, 2014, 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 fiscal years 2016 through 2025.’’.
(c) EXCLUSIONS.—Section 543(c)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking
‘‘An agency may exclude’’ and all that follows through the end
and inserting ‘‘(A) An agency may exclude, from the energy performance requirement for a fiscal year established under subsection
(a) and the energy management requirement established under
subsection (b), any Federal building or collection of Federal
buildings, if the head of the agency finds that—
‘‘(i) compliance with those requirements would be impracticable;
‘‘(ii) the agency has completed and submitted all federally
required energy management reports;
‘‘(iii) the agency has achieved compliance with the energy
efficiency requirements of this Act, the Energy Policy Act of
1992, Executive orders, and other Federal law; and
‘‘(iv) the agency has implemented all practicable, life cycle
cost-effective projects with respect to the Federal building or
collection of Federal buildings to be excluded.
‘‘(B) A finding of impracticability under subparagraph (A)(i)
shall be based on—
‘‘(i) the energy intensiveness of activities carried out in
the Federal building or collection of Federal buildings; or
‘‘(ii) the fact that the Federal building or collection of
Federal buildings is used in the performance of a national
security function.’’.
(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’’;
(2) by striking ‘‘a finding of impracticability’’ and inserting
‘‘the exclusion’’; and
(3) by striking ‘‘energy consumption requirements’’ and
inserting ‘‘requirements of subsections (a) and (b)(1)’’.
(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) RETENTION OF ENERGY AND WATER SAVINGS.—Section 546
of the National Energy Conservation Policy Act (42 U.S.C. 8256)
is amended by adding at the end the following new subsection:
‘‘(e) RETENTION OF ENERGY AND WATER SAVINGS.—An agency
may retain any funds appropriated to that agency for energy

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expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of section
543(a) and (b), that are not made because of energy savings or
water savings. Except as otherwise provided by law, such funds
may be used only for energy efficiency, water conservation, or
unconventional and renewable energy resources projects. Such
projects shall be subject to the requirements of section 3307 of
title 40, United States Code.’’.
(g) 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’’.
(h) CONFORMING AMENDMENT.—Section 550(d) of the National
Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended
in the second sentence by striking ‘‘the 20 percent reduction goal
established under section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the
energy reduction goals established under section 543(a).’’.
SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

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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, 2012, in accordance with
guidelines established by the Secretary under paragraph (2),
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. 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 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, representatives from the metering
industry, utility industry, energy services industry, energy
efficiency industry, energy efficiency advocacy organizations, national laboratories, universities, and Federal
facility 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 the reduced cost
of operation and maintenance expected to result
from metering;
‘‘(II) the extent to which metering is expected
to result in increased potential for energy management, increased potential for energy savings and
energy efficiency improvement, and cost and

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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 priorities for types and locations
of buildings to be metered based on cost-effectiveness
and a schedule of 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 minimis
quantity of energy use of a Federal building, industrial
process, or structure.
‘‘(3) PLAN.—Not 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.’’.

Deadline.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

(a) REQUIREMENTS.—Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended by
section 101, is amended by adding at the end the following:
‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

42 USC 8259b.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) AGENCY.—The term ‘agency’ has the meaning given
that term in section 7902(a) of title 5, United States Code.
‘‘(2) ENERGY STAR PRODUCT.—The term ‘Energy Star
product’ means a product that is rated for energy efficiency
under an Energy Star program.
‘‘(3) ENERGY STAR PROGRAM.—The term ‘Energy Star program’ means the program established by section 324A of the
Energy Policy and Conservation Act.
‘‘(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.
‘‘(5) PRODUCT.—The term ‘product’ does not include any
energy consuming product or system designed or procured for
combat or combat-related missions.
‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.—
‘‘(1) REQUIREMENT.—To meet the requirements of an agency
for an energy consuming product, the head of the agency shall,
except as provided in paragraph (2), procure—
‘‘(A) an Energy Star product; or

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Standards.
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‘‘(B) a FEMP designated product.
‘‘(2) EXCEPTIONS.—The head of an agency is not required
to procure an Energy Star product or FEMP designated product
under paragraph (1) if the head of the agency finds in writing
that—
‘‘(A) an Energy Star product or FEMP designated
product is not cost-effective over the life of the product
taking energy cost savings into account; or
‘‘(B) no Energy Star product or FEMP designated
product is reasonably available that meets the functional
requirements of the agency.
‘‘(3) PROCUREMENT PLANNING.—The head of an agency shall
incorporate into the specifications for all procurements
involving energy consuming products and systems, including
guide specifications, project specifications, and construction,
renovation, and services contracts that include provision of
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 products 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. The General Services Administration
or the Defense Logistics Agency shall supply only Energy Star
products or FEMP designated products for all product categories
covered by the Energy Star program or the Federal Energy Management Program, except in cases where the agency ordering a product
specifies in writing that no Energy Star product or FEMP designated product is available to meet the buyer’s functional requirements, or that no Energy Star product or FEMP designated product
is cost-effective for the intended application over the life of the
product, taking energy cost savings into account.
‘‘(d) SPECIFIC PRODUCTS.—(1) 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 not later than 120 days
after the date of the enactment of this section, after considering
the recommendations of associated electric motor manufacturers
and energy efficiency groups.
‘‘(2) All Federal agencies are encouraged to take actions to
maximize the efficiency of air conditioning and refrigeration equipment, including appropriate cleaning and maintenance, including
the use of any system treatment or additive that will reduce the
electricity consumed by air conditioning and refrigeration equipment. Any such treatment or additive must be—
‘‘(A) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and refrigeration
equipment without having an adverse impact on air conditioning performance (including cooling capacity) or equipment
useful life;
‘‘(B) determined by the Administrator of the Environmental
Protection Agency to be environmentally safe; and
‘‘(C) shown to increase seasonal energy efficiency ratio
(SEER) or energy efficiency ratio (EER) when tested by the

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National Institute of Standards and Technology according to
Department of Energy test procedures without causing any
adverse impact on the system, system components, the refrigerant or lubricant, or other materials in the system.
Results of testing described in subparagraph (C) shall be published in the Federal Register for public review and comment.
For purposes of this section, a hardware device or primary
refrigerant shall not be considered an additive.
‘‘(e) REGULATIONS.—Not later than 180 days after the date
of the enactment of this section, the Secretary shall issue guidelines
to carry out this section.’’.
(b) CONFORMING AMENDMENT.—The table of contents of the
National Energy Conservation Policy Act is further amended by
inserting after the item relating to section 552 the following new
item:

Federal Register,
publication.

‘‘Sec. 553. Federal procurement of energy efficient products.’’.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

(a) EXTENSION.—Section 801(c) of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is amended by striking
‘‘2006’’ and inserting ‘‘2016’’.
(b) EXTENSION OF AUTHORITY.—Any energy savings performance contract entered into under section 801 of the National Energy
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003,
and before the date of enactment of this Act, shall be considered
to have been entered into under that section.

42 USC 8257
note.

SEC.

42 USC 15811.

106.

VOLUNTARY COMMITMENTS
ENERGY INTENSITY.

TO

REDUCE

INDUSTRIAL

(a) DEFINITION OF ENERGY INTENSITY.—In this section, the
term ‘‘energy intensity’’ means the primary energy consumed for
each unit of physical output in an industrial process.
(b) VOLUNTARY AGREEMENTS.—The Secretary may enter into
voluntary agreements with one or more persons in industrial sectors
that consume significant quantities of primary energy for each
unit of physical output to reduce the energy intensity of the production activities of the persons.
(c) GOAL.—Voluntary agreements under this section shall have
as a goal the reduction of energy intensity by not less than 2.5
percent each year during the period of calendar years 2007 through
2016.
(d) RECOGNITION.—The Secretary, in cooperation with other
appropriate Federal agencies, shall develop mechanisms to recognize and publicize the achievements of participants in voluntary
agreements under this section.
(e) TECHNICAL ASSISTANCE.—A person that enters into an agreement under this section and continues to make a good faith effort
to achieve the energy efficiency goals specified in the agreement
shall be eligible to receive from the Secretary a grant or technical
assistance, as appropriate, to assist in the achievement of those
goals.
(f) REPORT.—Not later than each of June 30, 2012, and June
30, 2017, the Secretary shall submit to Congress a report that—
(1) evaluates the success of the voluntary agreements under
this section; and
(2) provides independent verification of a sample of the
energy savings estimates provided by participating firms.

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119 STAT. 612
42 USC 15812.

PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 107. ADVANCED BUILDING EFFICIENCY TESTBED.

(a) ESTABLISHMENT.—The Secretary, in consultation with the
Administrator of General Services, shall establish an Advanced
Building Efficiency Testbed program for the development, testing,
and demonstration of advanced engineering systems, components,
and materials to enable innovations in building technologies. The
program shall evaluate efficiency concepts for government and
industry buildings, and demonstrate the ability of next generation
buildings to support individual and organizational productivity and
health (including by improving indoor air quality) as well as flexibility and technological change to improve environmental sustainability. Such program shall complement and not duplicate existing
national programs.
(b) PARTICIPANTS.—The program established under subsection
(a) shall be led by a university with the ability to combine the
expertise from numerous academic fields including, at a minimum,
intelligent workplaces and advanced building systems and
engineering, electrical and computer engineering, computer science,
architecture, urban design, and environmental and mechanical
engineering. Such university shall partner with other universities
and entities who have established programs and the capability
of advancing innovative building efficiency technologies.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary to carry out this section
$6,000,000 for each of the fiscal years 2006 through 2008, to remain
available until expended. For any fiscal year in which funds are
expended under this section, the Secretary shall provide one-third
of the total amount to the lead university described in subsection
(b), and provide the remaining two-thirds to the other participants
referred to in subsection (b) on an equal basis.
SEC. 108. INCREASED USE OF RECOVERED MINERAL COMPONENT IN
FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE.

(a) AMENDMENT.—Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) is amended by adding at the end the
following:
42 USC 6966.

‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY
FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE

‘‘SEC. 6005. (a) DEFINITIONS.—In this section:
‘‘(1) AGENCY HEAD.—The term ‘agency head’ means—
‘‘(A) the Secretary of Transportation; and
‘‘(B) the head of any other Federal agency that, on
a regular basis, procures, or provides Federal funds to
pay or assist in paying the cost of procuring, material
for cement or concrete projects.
‘‘(2) CEMENT OR CONCRETE PROJECT.—The term ‘cement
or concrete project’ means a project for the construction or
maintenance of a highway or other transportation facility or
a Federal, State, or local government building or other public
facility that—
‘‘(A) involves the procurement of cement or concrete;
and
‘‘(B) is carried out, in whole or in part, using Federal
funds.

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‘‘(3) RECOVERED MINERAL COMPONENT.—The term ‘recovered mineral component’ means—
‘‘(A) ground granulated blast furnace slag, excluding
lead slag;
‘‘(B) coal combustion fly ash; and
‘‘(C) any other waste material or byproduct recovered
or diverted from solid waste that the Administrator, in
consultation with an agency head, determines should be
treated as recovered mineral component under this section
for use in cement or concrete projects paid for, in whole
or in part, by the agency head.
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) IN GENERAL.—Not later than 1 year after the date
of enactment of this section, the Administrator and each agency
head shall take such actions as are necessary to implement
fully all procurement requirements and incentives in effect
as of the date of enactment of this section (including guidelines
under section 6002) that provide for the use of cement and
concrete incorporating recovered mineral component in cement
or concrete projects.
‘‘(2) PRIORITY.—In carrying out paragraph (1), an agency
head shall give priority to achieving greater use of recovered
mineral component in cement or concrete projects for which
recovered mineral components historically have not been used
or have been used only minimally.
‘‘(3) FEDERAL PROCUREMENT REQUIREMENTS.—The Administrator and each agency head shall carry out this subsection
in accordance with section 6002.
‘‘(c) FULL IMPLEMENTATION STUDY.—
‘‘(1) IN GENERAL.—The Administrator, in cooperation with
the Secretary of Transportation and the Secretary of Energy,
shall conduct a study to determine the extent to which procurement requirements, when fully implemented in accordance with
subsection (b), may realize energy savings and environmental
benefits attainable with substitution of recovered mineral
component in cement used in cement or concrete projects.
‘‘(2) MATTERS TO BE ADDRESSED.—The study shall—
‘‘(A) quantify—
‘‘(i) the extent to which recovered mineral components are being substituted for Portland cement,
particularly as a result of procurement requirements;
and
‘‘(ii) the energy savings and environmental benefits
associated with the substitution;
‘‘(B) identify all barriers in procurement requirements
to greater realization of energy savings and environmental
benefits, including barriers resulting from exceptions from
the law; and
‘‘(C)(i) identify potential mechanisms to achieve greater
substitution of recovered mineral component in types of
cement or concrete projects for which recovered mineral
components historically have not been used or have been
used only minimally;
‘‘(ii) evaluate the feasibility of establishing guidelines
or standards for optimized substitution rates of recovered
mineral component in those cement or concrete projects;
and

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‘‘(iii) identify any potential environmental or economic
effects that may result from greater substitution of recovered mineral component in those cement or concrete
projects.
‘‘(3) REPORT.—Not later than 30 months after the date
of enactment of this section, the Administrator shall submit
to Congress a report on the study.
‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—Unless the
study conducted under subsection (c) identifies any effects or other
problems described in subsection (c)(2)(C)(iii) that warrant further
review or delay, the Administrator and each agency head shall,
not later than 1 year after the date on which the report under
subsection (c)(3) is submitted, take additional actions under this
Act to establish procurement requirements and incentives that provide for the use of cement and concrete with increased substitution
of recovered mineral component in the construction and maintenance of cement or concrete projects—
‘‘(1) to realize more fully the energy savings and environmental benefits associated with increased substitution; and
‘‘(2) to eliminate barriers identified under subsection
(c)(2)(B).
‘‘(e) EFFECT OF SECTION.—Nothing in this section affects the
requirements of section 6002 (including the guidelines and specifications for implementing those requirements).’’.
(b) CONFORMING AMENDMENT.—The table of contents of the
Solid Waste Disposal Act is amended by adding after the item
relating to section 6004 the following:
‘‘Sec. 6005. Increased use of recovered mineral component in federally funded
projects involving procurement of cement or concrete.’’.
SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.

Deadline.
Regulations.

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Section 305(a) of the Energy Conservation and Production Act
(42 U.S.C. 6834(a)) is amended—
(1) in paragraph (2)(A), by striking ‘‘CABO Model Energy
Code, 1992 (in the case of residential buildings) or ASHRAE
Standard 90.1–1989’’ and inserting ‘‘the 2004 International
Energy Conservation Code (in the case of residential buildings)
or ASHRAE Standard 90.1–2004’’; and
(2) by adding at the end the following:
‘‘(3)(A) Not later than 1 year after the date of enactment of
this paragraph, the Secretary shall establish, by rule, revised Federal building energy efficiency performance standards that require
that—
‘‘(i) if life-cycle cost-effective for new Federal buildings—
‘‘(I) the buildings be designed to achieve energy
consumption levels that are at least 30 percent below the
levels established in the version of the ASHRAE Standard
or the International Energy Conservation Code, as appropriate, that is in effect as of the date of enactment of
this paragraph; and
‘‘(II) sustainable design principles are applied to the
siting, design, and construction of all new and replacement
buildings; and
‘‘(ii) if water is used to achieve energy efficiency, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.

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‘‘(B) Not later than 1 year after the date of approval of each
subsequent revision of the ASHRAE Standard or the International
Energy Conservation Code, as appropriate, the Secretary shall
determine, based on the cost-effectiveness of the requirements under
the amendment, whether the revised standards established under
this paragraph should be updated to reflect the amendment.
‘‘(C) In the budget request of the Federal agency for each
fiscal year and each report submitted by the Federal agency under
section 548(a) of the National Energy Conservation Policy Act (42
U.S.C. 8258(a)), the head of each Federal agency shall include—
‘‘(i) a list of all new Federal buildings owned, operated,
or controlled by the Federal agency; and
‘‘(ii) a statement specifying whether the Federal buildings
meet or exceed the revised standards established under this
paragraph.’’.

Deadline.

SEC. 110. DAYLIGHT SAVINGS.

(a) AMENDMENT.—Section 3(a) of the Uniform Time Act of 1966
(15 U.S.C. 260a(a)) is amended—
(1) by striking ‘‘first Sunday of April’’ and inserting ‘‘second
Sunday of March’’; and
(2) by striking ‘‘last Sunday of October’’ and inserting ‘‘first
Sunday of November’’.
(b) EFFECTIVE DATE.—Subsection (a) shall take effect 1 year
after the date of enactment of this Act or March 1, 2007, whichever
is later.
(c) REPORT TO CONGRESS.—Not later than 9 months after the
effective date stated in subsection (b), the Secretary shall report
to Congress on the impact of this section on energy consumption
in the United States.
(d) RIGHT TO REVERT.—Congress retains the right to revert
the Daylight Saving Time back to the 2005 time schedules once
the Department study is complete.
SEC. 111. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.

15 USC 260a
note.
15 USC 260a
note.

42 USC 15813.

(a) SENSE OF THE CONGRESS.—It is the sense of the Congress
that Federal agencies should enhance the use of energy efficient
technologies in the management of natural resources.
(b) ENERGY EFFICIENT BUILDINGS.—To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and the
Secretary of Agriculture shall seek to incorporate energy efficient
technologies in public and administrative buildings associated with
management of the National Park System, National Wildlife Refuge
System, National Forest System, National Marine Sanctuaries
System, and other public lands and resources managed by the
Secretaries.
(c) ENERGY EFFICIENT VEHICLES.—To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and the
Secretary of Agriculture shall seek to use energy efficient motor
vehicles, including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System,
National Wildlife Refuge System, National Forest System, National
Marine Sanctuaries System, and other public lands and resources
managed by the Secretaries.

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Subtitle B—Energy Assistance and State
Programs
SEC. 121. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 2602(b) of the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8621(b)) is amended by striking ‘‘and $2,000,000,000 for each of
fiscal years 2002 through 2004’’ and inserting ‘‘and $5,100,000,000
for each of fiscal years 2005 through 2007’’.
(b) RENEWABLE FUELS.—The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) is amended by adding
at the end the following new section:
‘‘RENEWABLE FUELS
42 USC 8630.

42 USC 8630
note.

‘‘SEC. 2612. In providing assistance pursuant to this title, a
State, or any other person with which the State makes arrangements to carry out the purposes of this title, may purchase renewable fuels, including biomass.’’.
(c) REPORT TO CONGRESS.—The Secretary shall report to Congress on the use of renewable fuels in providing assistance under
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8621 et seq.).
SEC. 122. WEATHERIZATION ASSISTANCE.

(a) AUTHORIZATION OF APPROPRIATIONS.—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 ‘‘$500,000,000 for fiscal year
2006, $600,000,000 for fiscal year 2007, and $700,000,000 for fiscal
year 2008’’.
(b) ELIGIBILITY.—Section 412(7) of the Energy Conservation
and Production Act (42 U.S.C. 6862(7)) is amended by striking
‘‘125 percent’’ both places it appears and inserting ‘‘150 percent’’.
SEC. 123. 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 inserting at the end the following new subsection:
‘‘(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 such 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 carried out in pursuit of common energy conservation goals.’’.
(b) STATE ENERGY EFFICIENCY GOALS.—Section 364 of the
Energy Policy and Conservation Act (42 U.S.C. 6324) is amended
to read as follows:
‘‘STATE ENERGY EFFICIENCY GOALS
‘‘SEC. 364. Each State energy conservation plan with respect
to which assistance is made available under this part on or after
the date of enactment of the Energy Policy Act of 2005 shall
contain a goal, consisting of an improvement of 25 percent or
more in the efficiency of use of energy in the State concerned

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in calendar year 2012 as compared to calendar year 1990, and
may contain interim goals.’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 365(f) of the
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended
by striking ‘‘for fiscal years 1999 through 2003 such sums as may
be necessary’’ and inserting ‘‘$100,000,000 for each of the fiscal
years 2006 and 2007 and $125,000,000 for fiscal year 2008’’.
SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

42 USC 15821.

(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 (f) 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.

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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 the Secretary to carry out this section
$50,000,000 for each of the fiscal years 2006 through 2010.
42 USC 15822.

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

(a) GRANTS.—The Secretary may make grants to the State
agency responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42
U.S.C. 6322), or, if no such agency exists, a State agency designated
by the Governor of the State, to assist units of local government
in the State in improving the energy efficiency of public buildings
and facilities—
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a comparable public building constructed in compliance with standards prescribed in the most recent version of the International
Energy Conservation Code, or a similar State code intended
to achieve substantially equivalent efficiency levels; or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior
to renovation, assuming a 3-year, weather-normalized average
for calculating such baseline.
(b) ADMINISTRATION.—State energy offices receiving grants
under this section shall—
(1) maintain such records and evidence of compliance as
the Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance
to encourage planning, financing, and design of energy efficient
public buildings by units of local government.
(c) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of
this section, there are authorized to be appropriated to the Secretary
$30,000,000 for each of fiscal years 2006 through 2010. Not more
than 10 percent of appropriated funds shall be used for administration.

Records.

42 USC 15823.

SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

(a) GRANTS.—The Secretary 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.

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(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.), that 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
$20,000,000 for each of fiscal years 2006 through 2008.
SEC. 127. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

42 USC 15824.

(a) IN GENERAL.—The Secretary, in cooperation with the States,
shall establish a cooperative program for research, development,
demonstration, and deployment of technologies in which there is
a common Federal and State energy efficiency, renewable energy,
and fossil energy interest, to be known as the ‘‘State Technologies
Advancement Collaborative’’ (referred to in this section as the
‘‘Collaborative’’).
(b) DUTIES.—The Collaborative shall—
(1) leverage Federal and State funding through cost-shared
activity;
(2) reduce redundancies in Federal and State funding; and
(3) create multistate projects to be awarded through a
competitive process.
(c) ADMINISTRATION.—The Collaborative shall be administered
through an agreement between the Department and appropriate
State-based organizations.
(d) FUNDING SOURCES.—Funding for the Collaborative may be
provided from—
(1) amounts specifically appropriated for the Collaborative;
or
(2) amounts that may be allocated from other appropriations without changing the purpose for which the amounts
are appropriated.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to carry out this section such sums as are necessary for each
of fiscal years 2006 through 2010.
SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.

Section 304(e) of the Energy Conservation and Production Act
(42 U.S.C. 6833(e)) is amended—

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(1) in paragraph (1), by inserting before the period at
the end of the first sentence the following: ‘‘, including
increasing and verifying compliance with such codes’’; and
(2) by striking paragraph (2) and inserting the following:
‘‘(2) Additional funding shall be provided under this subsection
for implementation of a plan to achieve and document at least
a 90 percent rate of compliance with residential and commercial
building energy efficiency codes, based on energy performance—
‘‘(A) to a State that has adopted and is implementing,
on a statewide basis—
‘‘(i) a residential building energy efficiency code that
meets or exceeds the requirements of the 2004 International Energy Conservation Code, or any succeeding
version of that code that has received an affirmative determination from the Secretary under subsection (a)(5)(A);
and
‘‘(ii) a commercial building energy efficiency code that
meets or exceeds the requirements of the ASHRAE
Standard 90.1–2004, or any succeeding version of that
standard that has received an affirmative determination
from the Secretary under subsection (b)(2)(A); or
‘‘(B) in a State in which there is no statewide energy
code either for residential buildings or for commercial buildings,
to a local government that has adopted and is implementing
residential and commercial building energy efficiency codes,
as described in subparagraph (A).
‘‘(3) Of the amounts made available under this subsection,
the Secretary may use $500,000 for each fiscal year to train State
and local officials to implement codes described in paragraph (2).
‘‘(4)(A) There are authorized to be appropriated to carry out
this subsection—
‘‘(i) $25,000,000 for each of fiscal years 2006 through 2010;
and
‘‘(ii) such sums as are necessary for fiscal year 2011 and
each fiscal year thereafter.
‘‘(B) Funding provided to States under paragraph (2) for each
fiscal year shall not exceed one-half of the excess of funding under
this subsection over $5,000,000 for the fiscal year.’’.

Subtitle C—Energy Efficient Products
SEC. 131. ENERGY STAR PROGRAM.

(a) IN GENERAL.—The Energy Policy and Conservation Act
is amended by inserting after section 324 (42 U.S.C. 6294) the
following:
‘‘ENERGY STAR PROGRAM
42 USC 6294a.

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‘‘SEC. 324A. (a) IN GENERAL.—There is established within the
Department of Energy and the Environmental Protection Agency
a voluntary program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve
energy security, and reduce pollution through voluntary labeling
of, or other forms of communication about, products and buildings
that meet the highest energy conservation standards.
‘‘(b) DIVISION OF RESPONSIBILITIES.—Responsibilities under the
program shall be divided between the Department of Energy and

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the Environmental Protection Agency in accordance with the terms
of applicable agreements between those agencies.
‘‘(c) DUTIES.—The Administrator and the Secretary shall—
‘‘(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for—
‘‘(A) achieving energy efficiency; and
‘‘(B) reducing pollution;
‘‘(2) work to enhance public awareness of the Energy Star
label, including by providing special outreach to small
businesses;
‘‘(3) preserve the integrity of the Energy Star label;
‘‘(4) regularly update Energy Star product criteria for
product categories;
‘‘(5) solicit comments from interested parties prior to establishing or revising an Energy Star product category, specification, or criterion (or prior to effective dates for any such product
category, specification, or criterion);
‘‘(6) on adoption of a new or revised product category,
specification, or criterion, provide reasonable notice to
interested parties of any changes (including effective dates)
in product categories, specifications, or criteria, along with—
‘‘(A) an explanation of the changes; and
‘‘(B) as appropriate, responses to comments submitted
by interested parties; and
‘‘(7) provide appropriate lead time (which shall be 270
days, unless the Agency or Department specifies otherwise)
prior to the applicable effective date for a new or a significant
revision to a product category, specification, or criterion, taking
into account the timing requirements of the manufacturing,
product marketing, and distribution process for the specific
product addressed.
‘‘(d) DEADLINES.—The Secretary shall establish new qualifying
levels—
‘‘(1) not later than January 1, 2006, for clothes washers
and dishwashers, effective beginning January 1, 2007; and
‘‘(2) not later than January 1, 2008, for clothes washers,
effective beginning January 1, 2010.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table of contents
of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201)
is amended by inserting after the item relating to section 324
the following:
‘‘Sec. 324A. Energy Star program.’’.
SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

Section 337 of the Energy Policy and Conservation Act (42
U.S.C. 6307) is amended by adding at the end the following:
‘‘(c) HVAC MAINTENANCE.—(1) To ensure that installed air
conditioning and heating systems operate at maximum rated efficiency levels, the Secretary shall, not later than 180 days after
the date of enactment of this subsection, carry out a program
to educate homeowners and small business owners concerning the
energy savings from properly conducted maintenance of air conditioning, heating, and ventilating systems.
‘‘(2) The Secretary shall carry out the program under paragraph
(1), on a cost-shared basis, in cooperation with the Administrator
of the Environmental Protection Agency and any other entities
that the Secretary determines to be appropriate, including industry

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trade associations, industry members, and energy efficiency
organizations.
‘‘(d) SMALL BUSINESS EDUCATION AND ASSISTANCE.—(1) The
Administrator of the Small Business Administration, in consultation
with the Secretary and the Administrator of the Environmental
Protection Agency, shall develop and coordinate a Governmentwide program, building on the Energy Star for Small Business
Program, to assist small businesses in—
‘‘(A) becoming more energy efficient;
‘‘(B) understanding the cost savings from improved energy
efficiency;
‘‘(C) understanding and accessing Federal procurement
opportunities with regard to Energy Star technologies and products; and
‘‘(D) identifying financing options for energy efficiency
upgrades.
‘‘(2) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall—
‘‘(A) make program information available to small business
concerns directly through the district offices and resource partners of the Small Business Administration, including small
business development centers, women’s business centers, and
the Service Corps of Retired Executives (SCORE), and through
other Federal agencies, including the Federal Emergency
Management Agency and the Department of Agriculture; and
‘‘(B) coordinate assistance with the Secretary of Commerce
for manufacturing-related efforts, including the Manufacturing
Extension Partnership Program.
‘‘(3) The Secretary, on a cost shared basis in cooperation with
the Administrator of the Environmental Protection Agency, shall
provide to the Small Business Administration all advertising, marketing, and other written materials necessary for the dissemination
of information under paragraph (2).
‘‘(4) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration, as part of the outreach to small business concerns
under the Energy Star Program for Small Business Program, may
enter into cooperative agreements with qualified resources partners
(including the National Center for Appropriate Technology) to establish, maintain, and promote a Small Business Energy Clearinghouse
(in this subsection referred to as the ‘Clearinghouse’).
‘‘(5) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall ensure that the Clearinghouse provides a centralized resource where small business concerns may access, telephonically and electronically, technical information and advice to
help increase energy efficiency and reduce energy costs.
‘‘(6) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain available
until expended.’’.

42 USC 15831.

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

Deadline.

(a) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, the Secretary shall convene an organizational
conference for the purpose of establishing an ongoing, self-sustaining national public energy education program.

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(b) PARTICIPANTS.—The Secretary shall invite to participate
in the conference individuals and entities representing all aspects
of energy production and distribution, including—
(1) industrial firms;
(2) professional societies;
(3) educational organizations;
(4) trade associations; and
(5) governmental agencies.
(c) PURPOSE, SCOPE, AND STRUCTURE.—
(1) PURPOSE.—The purpose of the conference shall be to
establish an ongoing, self-sustaining national public energy education program to examine and recognize interrelationships
between energy sources in all forms, including—
(A) conservation and energy efficiency;
(B) the role of energy use in the economy; and
(C) the impact of energy use on the environment.
(2) SCOPE AND STRUCTURE.—Taking into consideration the
purpose described in paragraph (1), the participants in the
conference invited under subsection (b) shall design the scope
and structure of the program described in subsection (a).
(d) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance and other guidance necessary to carry out the
program described in subsection (a).
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

42 USC 15832.

(a) IN GENERAL.—The Secretary shall carry out a comprehensive national program, including advertising and media awareness,
to inform consumers about—
(1) the need to reduce energy consumption during the 4year period beginning on the date of enactment of this Act;
(2) the benefits to consumers of reducing consumption of
electricity, natural gas, and petroleum, particularly during peak
use periods;
(3) the importance of low energy costs to economic growth
and preserving manufacturing jobs in the United States; and
(4) practical, cost-effective measures that consumers can
take to reduce consumption of electricity, natural gas, and
gasoline, including—
(A) maintaining and repairing heating and cooling
ducts and equipment;
(B) weatherizing homes and buildings;
(C) purchasing energy efficient products; and
(D) proper tire maintenance.
(b) COOPERATION.—The program carried out under subsection
(a) shall—
(1) include collaborative efforts with State and local government officials and the private sector; and
(2) incorporate, to the maximum extent practicable, successful State and local public education programs.
(c) REPORT.—Not later than July 1, 2009, the Secretary shall
submit to Congress a report describing the effectiveness of the
program under this section.
(d) TERMINATION OF AUTHORITY.—The program carried out
under this section shall terminate on December 31, 2010.

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(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $90,000,000 for each
of fiscal years 2006 through 2010.
SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL
PRODUCTS.

(a) DEFINITIONS.—Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended—
(1) in paragraph (29)—
(A) in subparagraph (D)—
(i) in clause (i), by striking ‘‘C78.1–1978(R1984)’’
and inserting ‘‘C78.81–2003 (Data Sheet 7881–ANSI–
1010–1)’’;
(ii) in clause (ii), by striking ‘‘C78.1–1978(R1984)’’
and inserting ‘‘C78.81–2003 (Data Sheet 7881–ANSI–
3007–1)’’; and
(iii) in clause (iii), by striking ‘‘C78.1–1978(R1984)’’
and inserting ‘‘C78.81–2003 (Data Sheet 7881–ANSI–
1019–1)’’; and
(B) by adding at the end the following:
‘‘(M) The term ‘F34T12 lamp’ (also known as a ‘F40T12/
ES lamp’) means a nominal 34 watt tubular fluorescent lamp
that is 48 inches in length and 11⁄2 inches in diameter, and
conforms to ANSI standard C78.81–2003 (Data Sheet 7881–
ANSI–1006–1).
‘‘(N) The term ‘F96T12/ES lamp’ means a nominal 60 watt
tubular fluorescent lamp that is 96 inches in length and 11⁄2
inches in diameter, and conforms to ANSI standard C78.81–
2003 (Data Sheet 7881–ANSI–3006–1).
‘‘(O) The term ‘F96T12HO/ES lamp’ means a nominal 95
watt tubular fluorescent lamp that is 96 inches in length and
11⁄2 inches in diameter, and conforms to ANSI standard C78.81–
2003 (Data Sheet 7881–ANSI–1017–1).
‘‘(P) The term ‘replacement ballast’ means a ballast that—
‘‘(i) is designed for use to replace an existing ballast
in a previously installed luminaire;
‘‘(ii) is marked ‘FOR REPLACEMENT USE ONLY’;
‘‘(iii) is shipped by the manufacturer in packages containing not more than 10 ballasts; and
‘‘(iv) has output leads that when fully extended are
a total length that is less than the length of the lamp
with which the ballast is intended to be operated.’’;
(2) in paragraph (30)(S)—
(A) by inserting ‘‘(i)’’ before ‘‘The term’’; and
(B) by adding at the end the following:
‘‘(ii) The term ‘medium base compact fluorescent lamp’
does not include—
‘‘(I) any lamp that is—
‘‘(aa) specifically designed to be used for special purpose applications; and
‘‘(bb) unlikely to be used in general purpose
applications, such as the applications described
in subparagraph (D); or
‘‘(II) any lamp not described in subparagraph (D)
that is excluded by the Secretary, by rule, because
the lamp is—
‘‘(aa) designed for special applications; and

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‘‘(bb) unlikely to be used in general purpose
applications.’’; and
(3) by adding at the end the following:
‘‘(32) The term ‘battery charger’ means a device that
charges batteries for consumer products, including battery chargers embedded in other consumer products.
‘‘(33)(A) The term ‘commercial prerinse spray valve’ means
a handheld device designed and marketed for use with commercial dishwashing and ware washing equipment that sprays
water on dishes, flatware, and other food service items for
the purpose of removing food residue before cleaning the items.
‘‘(B) The Secretary may modify the definition of ‘commercial
prerinse spray valve’ by rule—
‘‘(i) to include products—
‘‘(I) that are extensively used in conjunction with
commercial dishwashing and ware washing equipment;
‘‘(II) the application of standards to which would
result in significant energy savings; and
‘‘(III) the application of standards to which would
meet the criteria specified in section 325(o)(4); and
‘‘(ii) to exclude products—
‘‘(I) that are used for special food service applications;
‘‘(II) that are unlikely to be widely used in conjunction with commercial dishwashing and ware washing
equipment; and
‘‘(III) the application of standards to which would
not result in significant energy savings.
‘‘(34) The term ‘dehumidifier’ means a self-contained, electrically operated, and mechanically encased assembly consisting
of—
‘‘(A) a refrigerated surface (evaporator) that condenses
moisture from the atmosphere;
‘‘(B) a refrigerating system, including an electric motor;
‘‘(C) an air-circulating fan; and
‘‘(D) means for collecting or disposing of the condensate.
‘‘(35)(A) The term ‘distribution transformer’ means a transformer that—
‘‘(i) has an input voltage of 34.5 kilovolts or less;
‘‘(ii) has an output voltage of 600 volts or less; and
‘‘(iii) is rated for operation at a frequency of 60 Hertz.
‘‘(B) The term ‘distribution transformer’ does not include—
‘‘(i) a transformer with multiple voltage taps, the
highest of which equals at least 20 percent more than
the lowest;
‘‘(ii) a transformer that is designed to be used in a
special purpose application and is unlikely to be used in
general purpose applications, such as a drive transformer,
rectifier transformer, auto-transformer, Uninterruptible
Power System transformer, impedance transformer, regulating transformer, sealed and nonventilating transformer,
machine tool transformer, welding transformer, grounding
transformer, or testing transformer; or
‘‘(iii) any transformer not listed in clause (ii) that is
excluded by the Secretary by rule because—
‘‘(I) the transformer is designed for a special
application;

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PUBLIC LAW 109–58—AUG. 8, 2005
‘‘(II) the transformer is unlikely to be used in
general purpose applications; and
‘‘(III) the application of standards to the transformer would not result in significant energy savings.
‘‘(36) The term ‘external power supply’ means an external
power supply circuit that is used to convert household electric
current into DC current or lower-voltage AC current to operate
a consumer product.
‘‘(37) The term ‘illuminated exit sign’ means a sign that—
‘‘(A) is designed to be permanently fixed in place to
identify an exit; and
‘‘(B) consists of an electrically powered integral light
source that—
‘‘(i) illuminates the legend ‘EXIT’ and any directional indicators; and
‘‘(ii) provides contrast between the legend, any
directional indicators, and the background.
‘‘(38) The term ‘low-voltage dry-type distribution transformer’ means a distribution transformer that—
‘‘(A) has an input voltage of 600 volts or less;
‘‘(B) is air-cooled; and
‘‘(C) does not use oil as a coolant.
‘‘(39) The term ‘pedestrian module’ means a light signal
used to convey movement information to pedestrians.
‘‘(40) The term ‘refrigerated bottled or canned beverage
vending machine’ means a commercial refrigerator that cools
bottled or canned beverages and dispenses the bottled or canned
beverages on payment.
‘‘(41) The term ‘standby mode’ means the lowest power
consumption mode, as established on an individual product
basis by the Secretary, that—
‘‘(A) cannot be switched off or influenced by the user;
and
‘‘(B) may persist for an indefinite time when an appliance is—
‘‘(i) connected to the main electricity supply; and
‘‘(ii) used in accordance with the instructions of
the manufacturer.
‘‘(42) The term ‘torchiere’ means a portable electric lamp
with a reflector bowl that directs light upward to give indirect
illumination.
‘‘(43) The term ‘traffic signal module’ means a standard
8-inch (200mm) or 12-inch (300mm) traffic signal indication
that—
‘‘(A) consists of a light source, a lens, and all other
parts necessary for operation; and
‘‘(B) communicates movement messages to drivers
through red, amber, and green colors.
‘‘(44) The term ‘transformer’ means a device consisting
of 2 or more coils of insulated wire that transfers alternating
current by electromagnetic induction from 1 coil to another
to change the original voltage or current value.
‘‘(45)(A) The term ‘unit heater’ means a self-contained fantype heater designed to be installed within the heated space.
‘‘(B) The term ‘unit heater’ does not include a warm air
furnace.

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‘‘(46)(A) The term ‘high intensity discharge lamp’ means
an electric-discharge lamp in which—
‘‘(i) the light-producing arc is stabilized by bulb wall
temperature; and
‘‘(ii) the arc tube has a bulb wall loading in excess
of 3 Watts/cm2.
‘‘(B) The term ‘high intensity discharge lamp’ includes mercury vapor, metal halide, and high-pressure sodium lamps
described in subparagraph (A).
‘‘(47)(A) The term ‘mercury vapor lamp’ means a high intensity discharge lamp in which the major portion of the light
is produced by radiation from mercury operating at a partial
pressure in excess of 100,000 Pa (approximately 1 atm).
‘‘(B) The term ‘mercury vapor lamp’ includes clear, phosphor-coated, and self-ballasted lamps described in subparagraph (A).
‘‘(48) The term ‘mercury vapor lamp ballast’ means a device
that is designed and marketed to start and operate mercury
vapor lamps by providing the necessary voltage and current.
‘‘(49) The term ‘ceiling fan’ means a nonportable device
that is suspended from a ceiling for circulating air via the
rotation of fan blades.
‘‘(50) The term ‘ceiling fan light kit’ means equipment
designed to provide light from a ceiling fan that can be—
‘‘(A) integral, such that the equipment is attached to
the ceiling fan prior to the time of retail sale; or
‘‘(B) attachable, such that at the time of retail sale
the equipment is not physically attached to the ceiling
fan, but may be included inside the ceiling fan at the
time of sale or sold separately for subsequent attachment
to the fan.
‘‘(51) The term ‘medium screw base’ means an Edison screw
base identified with the prefix E–26 in the ‘American National
Standard for Electric Lamp Bases’, ANSI/IEC C81.61–2003,
published by the American National Standards Institute.’’.
(b) TEST PROCEDURES.—Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended—
(1) in subsection (b), by adding at the end the following:
‘‘(9) Test procedures for illuminated exit signs shall be based
on the test method used under version 2.0 of the Energy Star
program of the Environmental Protection Agency for illuminated
exit signs.
‘‘(10)(A) Test procedures for distribution transformers and low
voltage dry-type distribution transformers shall be based on the
‘Standard Test Method for Measuring the Energy Consumption
of Distribution Transformers’ prescribed by the National Electrical
Manufacturers Association (NEMA TP 2–1998).
‘‘(B) The Secretary may review and revise the test procedures
established under subparagraph (A).
‘‘(C) For purposes of section 346(a), the test procedures established under subparagraph (A) shall be considered to be the testing
requirements prescribed by the Secretary under section 346(a)(1)
for distribution transformers for which the Secretary makes a determination that energy conservation standards would—
‘‘(i) be technologically feasible and economically justified;
and
‘‘(ii) result in significant energy savings.

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Deadline.
Requirements.

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‘‘(11) Test procedures for traffic signal modules and pedestrian
modules shall be based on the test method used under the Energy
Star program of the Environmental Protection Agency for traffic
signal modules, as in effect on the date of enactment of this paragraph.
‘‘(12)(A) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods for compact fluorescent
lamps used under the August 9, 2001, version of the Energy Star
program of the Environmental Protection Agency and the Department of Energy.
‘‘(B) Except as provided in subparagraph (C), medium base
compact fluorescent lamps shall meet all test requirements for
regulated parameters of section 325(cc).
‘‘(C) Notwithstanding subparagraph (B), if manufacturers document engineering predictions and analysis that support expected
attainment of lumen maintenance at 40 percent rated life and
lamp lifetime, medium base compact fluorescent lamps may be
marketed before completion of the testing of lamp life and lumen
maintenance at 40 percent of rated life.
‘‘(13) Test procedures for dehumidifiers shall be based on the
test criteria used under the Energy Star Program Requirements
for Dehumidifiers developed by the Environmental Protection
Agency, as in effect on the date of enactment of this paragraph
unless revised by the Secretary pursuant to this section.
‘‘(14) The test procedure for measuring flow rate for commercial
prerinse spray valves shall be based on American Society for Testing
and Materials Standard F2324, entitled ‘Standard Test Method
for Pre-Rinse Spray Valves’.
‘‘(15) The test procedure for refrigerated bottled or canned
beverage vending machines shall be based on American National
Standards Institute/American Society of Heating, Refrigerating and
Air-Conditioning Engineers Standard 32.1–2004, entitled ‘Methods
of Testing for Rating Vending Machines for Bottled, Canned or
Other Sealed Beverages’.
‘‘(16)(A)(i) Test procedures for ceiling fans shall be based on
the ‘Energy Star Testing Facility Guidance Manual: Building a
Testing Facility and Performing the Solid State Test Method for
ENERGY STAR Qualified Ceiling Fans, Version 1.1’ published by
the Environmental Protection Agency.
‘‘(ii) Test procedures for ceiling fan light kits shall be based
on the test procedures referenced in the Energy Star specifications
for Residential Light Fixtures and Compact Fluorescent Light
Bulbs, as in effect on the date of enactment of this paragraph.
‘‘(B) The Secretary may review and revise the test procedures
established under subparagraph (A).’’; and
(2) by adding at the end the following:
‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS.—(1)
Not later than 2 years after the date of enactment of this subsection,
the Secretary shall prescribe testing requirements for refrigerated
bottled or canned beverage vending machines.
‘‘(2) To the maximum extent practicable, the testing requirements prescribed under paragraph (1) shall be based on existing
test procedures used in industry.’’.
(c) STANDARD SETTING AUTHORITY.—Section 325 of the Energy
Policy and Conservation Act (42 U.S.C. 6295) is amended—
(1) in subsection (f)(3), by adding at the end the following:

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‘‘(D) Notwithstanding any other provision of this Act, if the
requirements of subsection (o) are met, the Secretary may consider
and prescribe energy conservation standards or energy use standards for electricity used for purposes of circulating air through
duct work.’’;
(2) in subsection (g)—
(A) in paragraph (6)(B), by inserting ‘‘and labeled’’
after ‘‘designed’’; and
(B) by adding at the end the following:
‘‘(8)(A) Each fluorescent lamp ballast (other than replacement
ballasts or ballasts described in subparagraph (C))—
‘‘(i)(I) manufactured on or after July 1, 2009;
‘‘(II) sold by the manufacturer on or after October 1, 2009;
or
‘‘(III) incorporated into a luminaire by a luminaire manufacturer on or after July 1, 2010; and
‘‘(ii) designed—
‘‘(I) to operate at nominal input voltages of 120 or
277 volts;
‘‘(II) to operate with an input current frequency of
60 Hertz; and
‘‘(III) for use in connection with F34T12 lamps, F96T12/
ES lamps, or F96T12HO/ES lamps;
shall have a power factor of 0.90 or greater and shall have
a ballast efficacy factor of not less than the following:
‘‘Application for operation of
One F34T12 lamp
Two F34T12 lamps
Two F96T12/ES lamps
Two F96T12HO/ES lamps

Ballast
input
voltage
120/277
120/277
120/277
120/277

Total
nominal
lamp
watts
34
68
120
190

Ballast
efficacy
factor
2.61
1.35
0.77
0.42.

‘‘(B) The standards described in subparagraph (A) shall apply
to all ballasts covered by subparagraph (A)(ii) that are manufactured on or after July 1, 2010, or sold by the manufacturer on
or after October 1, 2010.
‘‘(C) The standards described in subparagraph (A) do not apply
to—
‘‘(i) a ballast that is designed for dimming to 50 percent
or less of the maximum output of the ballast;
‘‘(ii) a ballast that is designed for use with 2 F96T12HO
lamps at ambient temperatures of 20°F or less and for use
in an outdoor sign; or
‘‘(iii) a ballast that has a power factor of less than 0.90
and is designed and labeled for use only in residential applications.’’;
(3) in subsection (o), by adding at the end the following:
‘‘(5) The Secretary may set more than 1 energy conservation
standard for products that serve more than 1 major function by
setting 1 energy conservation standard for each major function.’’;
and
(4) by adding at the end the following:
‘‘(u) BATTERY CHARGER AND EXTERNAL POWER SUPPLY ELECTRIC
ENERGY CONSUMPTION.—(1)(A) Not later than 18 months after the
date of enactment of this subsection, the Secretary shall, after
providing notice and an opportunity for comment, prescribe, by

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Applicability.

Deadline.
Notice.
Regulations.

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Deadline.

Deadline.
Regulations.

Applicability.
Effective date.

Deadline.
Regulations.

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rule, definitions and test procedures for the power use of battery
chargers and external power supplies.
‘‘(B) In establishing the test procedures under subparagraph
(A), the Secretary shall—
‘‘(i) consider existing definitions and test procedures used
for measuring energy consumption in standby mode and other
modes; and
‘‘(ii) assess the current and projected future market for
battery chargers and external power supplies.
‘‘(C) The assessment under subparagraph (B)(ii) shall include—
‘‘(i) estimates of the significance of potential energy savings
from technical improvements to battery chargers and external
power supplies; and
‘‘(ii) suggested product classes for energy conservation
standards.
‘‘(D) Not later than 18 months after the date of enactment
of this subsection, the Secretary shall hold a scoping workshop
to discuss and receive comments on plans for developing energy
conservation standards for energy use for battery chargers and
external power supplies.
‘‘(E)(i) Not later than 3 years after the date of enactment
of this subsection, the Secretary shall issue a final rule that determines whether energy conservation standards shall be issued for
battery chargers and external power supplies or classes of battery
chargers and external power supplies.
‘‘(ii) For each product class, any energy conservation standards
issued under clause (i) shall be set at the lowest level of energy
use that—
‘‘(I) meets the criteria and procedures of subsections (o),
(p), (q), (r), (s), and (t); and
‘‘(II) would result in significant overall annual energy
savings, considering standby mode and other operating modes.
‘‘(2) In determining under section 323 whether test procedures
and energy conservation standards under this section should be
revised with respect to covered products that are major sources
of standby mode energy consumption, the Secretary shall consider
whether to incorporate standby mode into the test procedures and
energy conservation standards, taking into account standby mode
power consumption compared to overall product energy consumption.
‘‘(3) The Secretary shall not propose an energy conservation
standard under this section, unless the Secretary has issued
applicable test procedures for each product under section 323.
‘‘(4) Any energy conservation standard issued under this subsection shall be applicable to products manufactured or imported
beginning on the date that is 3 years after the date of issuance.
‘‘(5) The Secretary and the Administrator shall collaborate and
develop programs (including programs under section 324A and other
voluntary industry agreements or codes of conduct) that are
designed to reduce standby mode energy use.
‘‘(v) CEILING FANS AND REFRIGERATED BEVERAGE VENDING
MACHINES.—(1) Not later than 1 year after the date of enactment
of this subsection, the Secretary shall prescribe, by rule, test procedures and energy conservation standards for ceiling fans and ceiling
fan light kits. If the Secretary sets such standards, the Secretary
shall consider exempting or setting different standards for certain
product classes for which the primary standards are not technically

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feasible or economically justified, and establishing separate or
exempted product classes for highly decorative fans for which air
movement performance is a secondary design feature.
‘‘(2) Not later than 4 years after the date of enactment of
this subsection, the Secretary shall prescribe, by rule, energy conservation standards for refrigerated bottle or canned beverage
vending machines.
‘‘(3) In establishing energy conservation standards under this
subsection, the Secretary shall use the criteria and procedures
prescribed under subsections (o) and (p).
‘‘(4) Any energy conservation standard prescribed under this
subsection shall apply to products manufactured 3 years after the
date of publication of a final rule establishing the energy conservation standard.
‘‘(w) ILLUMINATED EXIT SIGNS.—An illuminated exit sign manufactured on or after January 1, 2006, shall meet the version 2.0
Energy Star Program performance requirements for illuminated
exit signs prescribed by the Environmental Protection Agency.
‘‘(x) TORCHIERES.—A torchiere manufactured on or after
January 1, 2006—
‘‘(1) shall consume not more than 190 watts of power;
and
‘‘(2) shall not be capable of operating with lamps that
total more than 190 watts.
‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION TRANSFORMERS.—
The efficiency of a low voltage dry-type distribution transformer
manufactured on or after January 1, 2007, shall be the Class
I Efficiency Levels for distribution transformers specified in table
4–2 of the ‘Guide for Determining Energy Efficiency for Distribution
Transformers’ published by the National Electrical Manufacturers
Association (NEMA TP–1–2002).
‘‘(z) TRAFFIC SIGNAL MODULES AND PEDESTRIAN MODULES.—
Any traffic signal module or pedestrian module manufactured on
or after January 1, 2006, shall—
‘‘(1) meet the performance requirements used under the
Energy Star program of the Environmental Protection Agency
for traffic signals, as in effect on the date of enactment of
this subsection; and
‘‘(2) be installed with compatible, electrically connected
signal control interface devices and conflict monitoring systems.
‘‘(aa) UNIT HEATERS.—A unit heater manufactured on or after
the date that is 3 years after the date of enactment of this subsection
shall—
‘‘(1) be equipped with an intermittent ignition device; and
‘‘(2) have power venting or an automatic flue damper.
‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT LAMPS.—(1) A bare
lamp and covered lamp (no reflector) medium base compact fluorescent lamp manufactured on or after January 1, 2006, shall meet
the following requirements prescribed by the August 9, 2001,
version of the Energy Star Program Requirements for Compact
Fluorescent Lamps, Energy Star Eligibility Criteria, Energy-Efficiency Specification issued by the Environmental Protection Agency
and Department of Energy:
‘‘(A) Minimum initial efficacy.
‘‘(B) Lumen maintenance at 1000 hours.
‘‘(C) Lumen maintenance at 40 percent of rated life.
‘‘(D) Rapid cycle stress test.

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119 STAT. 632

PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(E) Lamp life.
‘‘(2) The Secretary may, by rule, establish requirements for
color quality (CRI), power factor, operating frequency, and maximum allowable start time based on the requirements prescribed
by the August 9, 2001, version of the Energy Star Program Requirements for Compact Fluorescent Lamps.
‘‘(3) The Secretary may, by rule—
‘‘(A) revise the requirements established under paragraph
(2); or
‘‘(B) establish other requirements, after considering energy
savings, cost effectiveness, and consumer satisfaction.
‘‘(cc) DEHUMIDIFIERS.—(1) Dehumidifiers manufactured on or
after October 1, 2007, shall have an Energy Factor that meets
or exceeds the following values:
‘‘Product Capacity (pints/day):

25.00 or less ......................................................................................
25.01 – 35.00 .....................................................................................
35.01 – 54.00 .....................................................................................
54.01 – 74.99 .....................................................................................
75.00 or more ....................................................................................
Deadline.
Publication.
Regulations.

Applicability.

Minimum
Energy
Factor
(Liters/kWh)
1.00
1.20
1.30
1.50
2.25.

‘‘(2)(A) Not later than October 1, 2009, the Secretary shall
publish a final rule in accordance with subsections (o) and (p),
to determine whether the energy conservation standards established
under paragraph (1) should be amended.
‘‘(B) The final rule published under subparagraph (A) shall—
‘‘(i) contain any amendment by the Secretary; and
‘‘(ii) provide that the amendment applies to products manufactured on or after October 1, 2012.
‘‘(C) If the Secretary does not publish an amendment that
takes effect by October 1, 2012, dehumidifiers manufactured on
or after October 1, 2012, shall have an Energy Factor that meets
or exceeds the following values:
‘‘Product Capacity (pints/day):

25.00 or less ......................................................................................
25.01 – 35.00 .....................................................................................
35.01 – 45.00 .....................................................................................
45.01 – 54.00 .....................................................................................
54.01 – 74.99 .....................................................................................
75.00 or more ....................................................................................

Minimum
Energy
Factor
(Liters/kWh)
1.20
1.30
1.40
1.50
1.60
2.5.

‘‘(dd) COMMERCIAL PRERINSE SPRAY VALVES.—Commercial
prerinse spray valves manufactured on or after January 1, 2006,
shall have a flow rate of not more than 1.6 gallons per minute.
‘‘(ee) MERCURY VAPOR LAMP BALLASTS.—Mercury vapor lamp
ballasts shall not be manufactured or imported after January 1,
2008.
‘‘(ff) CEILING FANS AND CEILING FAN LIGHT KITS.—(1)(A) All
ceiling fans manufactured on or after January 1, 2007, shall have
the following features:
‘‘(i) Fan speed controls separate from any lighting controls.
‘‘(ii) Adjustable speed controls (either more than 1 speed
or variable speed).
‘‘(iii) Adjustable speed controls (either more than 1 speed
or variable speed).
‘‘(iv) The capability of reversible fan action, except for—

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119 STAT. 633

‘‘(I) fans sold for industrial applications;
‘‘(II) outdoor applications; and
‘‘(III) cases in which safety standards would be violated
by the use of the reversible mode.
‘‘(B) The Secretary may define the exceptions described in
clause (iv) in greater detail, but shall not substantively expand
the exceptions.
‘‘(2)(A) Ceiling fan light kits with medium screw base sockets
manufactured on or after January 1, 2007, shall be packaged with
screw-based lamps to fill all screw base sockets.
‘‘(B) The screw-based lamps required under subparagraph (A)
shall—
‘‘(i) meet the Energy Star Program Requirements for Compact Fluorescent Lamps, version 3.0, issued by the Department
of Energy; or
‘‘(ii) use light sources other than compact fluorescent lamps
that have lumens per watt performance at least equivalent
to comparably configured compact fluorescent lamps meeting
the Energy Star Program Requirements described in clause
(i).
‘‘(3) Ceiling fan light kits with pin-based sockets for fluorescent
lamps manufactured on or after January 1, 2007 shall—
‘‘(A) meet the Energy Star Program Requirements for Residential Light Fixtures version 4.0 issued by the Environmental
Protection Agency; and
‘‘(B) be packaged with lamps to fill all sockets.
‘‘(4)(A) By January 1, 2007, the Secretary shall consider and
issue requirements for any ceiling fan lighting kits other than
those covered in paragraphs (2) and (3), including candelabra screw
base sockets.
‘‘(B) The requirements issued under subparagraph (A) shall
be effective for products manufactured 2 years after the date of
the final rule.
‘‘(C) If the Secretary fails to issue a final rule by the date
specified in subparagraph (B), any type of ceiling fan lighting kit
described in subparagraph (A) that is manufactured after January
1, 2009—
‘‘(i) shall not be capable of operating with lamps that total
more than 190 watts; and
‘‘(ii) shall include the lamps described in clause (i) in the
ceiling fan lighting kits.
‘‘(5)(A) After January 1, 2010, the Secretary may consider,
and issue, if the requirements of subsections (o) and (p) are met,
amended energy efficiency standards for ceiling fan light kits.
‘‘(B) Any amended standards issued under subparagraph (A)
shall apply to products manufactured not earlier than 2 years
after the date of publication of the final rule establishing the
amended standard.
‘‘(6)(A) Notwithstanding any other provision of this Act, the
Secretary may consider, and issue, if the requirements of subsections (o) and (p) are met, energy efficiency or energy use standards for electricity used by ceiling fans to circulate air in a room.
‘‘(B) In issuing the standards under subparagraph (A), the
Secretary shall consider—
‘‘(C) exempting, or setting different standards for, certain
product classes for which the primary standards are not technically feasible or economically justified; and

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119 STAT. 634

Applicability.

PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(D) establishing separate exempted product classes for
highly decorative fans for which air movement performance
is a secondary design feature.
‘‘(7) Section 327 shall apply to the products covered in paragraphs (1) through (4) beginning on the date of enactment of this
subsection, except that any State or local labeling requirement
for ceiling fans prescribed or enacted before the date of enactment
of this subsection shall not be preempted until the labeling requirements applicable to ceiling fans established under section 327 take
effect.
‘‘(gg) APPLICATION DATE.—Section 327 applies—
‘‘(1) to products for which energy conservation standards
are to be established under subsection (l), (u), or (v) beginning
on the date on which a final rule is issued by the Secretary,
except that any State or local standard prescribed or enacted
for the product before the date on which the final rule is
issued shall not be preempted until the energy conservation
standard established under subsection (l), (u), or (v) for the
product takes effect; and
‘‘(2) to products for which energy conservation standards
are established under subsections (w) through (ff) on the date
of enactment of those subsections, except that any State or
local standard prescribed or enacted before the date of enactment of those subsections shall not be preempted until the
energy conservation standards established under subsections
(w) through (ff) take effect.’’.
(d) GENERAL RULE OF PREEMPTION.—Section 327(c) of the
Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is
amended—
(1) in paragraph (5), by striking ‘‘or’’ at the end;
(2) in paragraph (6), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(7)(A) is a regulation concerning standards for commercial
prerinse spray valves adopted by the California Energy
Commission before January 1, 2005; or
‘‘(B) is an amendment to a regulation described in subparagraph (A) that was developed to align California regulations
with changes in American Society for Testing and Materials
Standard F2324;
‘‘(8)(A) is a regulation concerning standards for pedestrian
modules adopted by the California Energy Commission before
January 1, 2005; or
‘‘(B) is an amendment to a regulation described in subparagraph (A) that was developed to align California regulations
to changes in the Institute for Transportation Engineers standards, entitled ‘Performance Specification: Pedestrian Traffic
Control Signal Indications’.’’.
SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL
EQUIPMENT.

(a) DEFINITIONS.—Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (D) through (G)
as subparagraphs (H) through (K), respectively; and
(B) by inserting after subparagraph (C) the following:

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‘‘(D) Very large commercial package air conditioning
and heating equipment.
‘‘(E) Commercial refrigerators, freezers, and refrigerator-freezers.
‘‘(F) Automatic commercial ice makers.
‘‘(G) Commercial clothes washers.’’;
(2) in paragraph (2)(B), by striking ‘‘small and large
commercial package air conditioning and heating equipment’’
and inserting ‘‘commercial package air conditioning and heating
equipment, commercial refrigerators, freezers, and refrigeratorfreezers, automatic commercial ice makers, commercial clothes
washers’’;
(3) by striking paragraphs (8) and (9) and inserting the
following:
‘‘(8)(A) The term ‘commercial package air conditioning and
heating equipment’ means air-cooled, water-cooled, evaporatively-cooled, or water source (not including ground water
source) electrically operated, unitary central air conditioners
and central air conditioning heat pumps for commercial application.
‘‘(B) The term ‘small commercial package air conditioning
and heating equipment’ means commercial package air conditioning and heating equipment that is rated below 135,000
Btu per hour (cooling capacity).
‘‘(C) The term ‘large commercial package air conditioning
and heating equipment’ means commercial package air conditioning and heating equipment that is rated—
‘‘(i) at or above 135,000 Btu per hour; and
‘‘(ii) below 240,000 Btu per hour (cooling capacity).
‘‘(D) The term ‘very large commercial package air conditioning and heating equipment’ means commercial package air
conditioning and heating equipment that is rated—
‘‘(i) at or above 240,000 Btu per hour; and
‘‘(ii) below 760,000 Btu per hour (cooling capacity).
‘‘(9)(A) The term ‘commercial refrigerator, freezer, and
refrigerator-freezer’ means refrigeration equipment that—
‘‘(i) is not a consumer product (as defined in section
321);
‘‘(ii) is not designed and marketed exclusively for medical, scientific, or research purposes;
‘‘(iii) operates at a chilled, frozen, combination chilled
and frozen, or variable temperature;
‘‘(iv) displays or stores merchandise and other perishable materials horizontally, semivertically, or vertically;
‘‘(v) has transparent or solid doors, sliding or hinged
doors, a combination of hinged, sliding, transparent, or
solid doors, or no doors;
‘‘(vi) is designed for pull-down temperature applications
or holding temperature applications; and
‘‘(vii) is connected to a self-contained condensing unit
or to a remote condensing unit.
‘‘(B) The term ‘holding temperature application’ means a
use of commercial refrigeration equipment other than a pulldown temperature application, except a blast chiller or freezer.
‘‘(C) The term ‘integrated average temperature’ means the
average temperature of all test package measurements taken
during the test.

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PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(D) The term ‘pull-down temperature application’ means
a commercial refrigerator with doors that, when fully loaded
with 12 ounce beverage cans at 90 degrees F, can cool those
beverages to an average stable temperature of 38 degrees F
in 12 hours or less.
‘‘(E) The term ‘remote condensing unit’ means a factorymade assembly of refrigerating components designed to compress and liquefy a specific refrigerant that is remotely located
from the refrigerated equipment and consists of one or more
refrigerant compressors, refrigerant condensers, condenser fans
and motors, and factory supplied accessories.
‘‘(F) The term ‘self-contained condensing unit’ means a
factory-made assembly of refrigerating components designed
to compress and liquefy a specific refrigerant that is an integral
part of the refrigerated equipment and consists of one or more
refrigerant compressors, refrigerant condensers, condenser fans
and motors, and factory supplied accessories.’’; and
(4) by adding at the end the following:
‘‘(19) The term ‘automatic commercial ice maker’ means
a factory-made assembly (not necessarily shipped in one package) that—
‘‘(A) consists of a condensing unit and ice-making section operating as an integrated unit, with means for making
and harvesting ice; and
‘‘(B) may include means for storing ice, dispensing
ice, or storing and dispensing ice.
‘‘(20) The term ‘commercial clothes washer’ means a softmount front-loading or soft-mount top-loading clothes washer
that—
‘‘(A) has a clothes container compartment that—
‘‘(i) for horizontal-axis clothes washers, is not more
than 3.5 cubic feet; and
‘‘(ii) for vertical-axis clothes washers, is not more
than 4.0 cubic feet; and
‘‘(B) is designed for use in—
‘‘(i) applications in which the occupants of more
than one household will be using the clothes washer,
such as multi-family housing common areas and coin
laundries; or
‘‘(ii) other commercial applications.
‘‘(21) The term ‘harvest rate’ means the amount of ice
(at 32 degrees F) in pounds produced per 24 hours.’’.
(b) STANDARDS FOR COMMERCIAL PACKAGE AIR CONDITIONING
AND HEATING EQUIPMENT.—Section 342(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(a)) is amended—
(1) in the subsection heading, by striking ‘‘SMALL AND
LARGE’’ and inserting ‘‘SMALL, LARGE, AND VERY LARGE’’;
(2) in paragraph (1), by inserting ‘‘but before January 1,
2010,’’ after ‘‘January 1, 1994,’’;
(3) in paragraph (2), by inserting ‘‘but before January 1,
2010,’’ after ‘‘January 1, 1995,’’; and
(4) in paragraph (6)—
(A) in subparagraph (A)—
(i) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(ii) by striking ‘‘the date of enactment of the
Energy Policy Act of 1992’’ and inserting ‘‘January
1, 2010’’;

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(iii) by inserting after ‘‘large commercial package
air conditioning and heating equipment,’’ the following:
‘‘and very large commercial package air conditioning
and heating equipment, or if ASHRAE/IES Standard
90.1, as in effect on October 24, 1992, is amended
with respect to any’’; and
(iv) by adding at the end the following:
‘‘(ii) If ASHRAE/IES Standard 90.1 is not amended with respect
to small commercial package air conditioning and heating equipment, large commercial package air conditioning and heating equipment, and very large commercial package air conditioning and
heating equipment during the 5-year period beginning on the effective date of a standard, the Secretary may initiate a rulemaking
to determine whether a more stringent standard—
‘‘(I) would result in significant additional conservation of
energy; and
‘‘(II) is technologically feasible and economically justified.’’;
and
(B) in subparagraph (C)(ii), by inserting ‘‘and very
large commercial package air conditioning and heating
equipment’’ after ‘‘large commercial package air conditioning and heating equipment’’; and
(5) by adding at the end the following:
‘‘(7) Small commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet
the following standards:
‘‘(A) The minimum energy efficiency ratio of air-cooled central air conditioners at or above 65,000 Btu per hour (cooling
capacity) and less than 135,000 Btu per hour (cooling capacity)
shall be—
‘‘(i) 11.2 for equipment with no heating or electric
resistance heating; and
‘‘(ii) 11.0 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(B) The minimum energy efficiency ratio of air-cooled central air conditioner heat pumps at or above 65,000 Btu per
hour (cooling capacity) and less than 135,000 Btu per hour
(cooling capacity) shall be—
‘‘(i) 11.0 for equipment with no heating or electric
resistance heating; and
‘‘(ii) 10.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 65,000 Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be 3.3 (at a
high temperature rating of 47 degrees F db).
‘‘(8) Large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet
the following standards:
‘‘(A) The minimum energy efficiency ratio of air-cooled central air conditioners at or above 135,000 Btu per hour (cooling
capacity) and less than 240,000 Btu per hour (cooling capacity)
shall be—

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PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(i) 11.0 for equipment with no heating or electric
resistance heating; and
‘‘(ii) 10.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(B) The minimum energy efficiency ratio of air-cooled central air conditioner heat pumps at or above 135,000 Btu per
hour (cooling capacity) and less than 240,000 Btu per hour
(cooling capacity) shall be—
‘‘(i) 10.6 for equipment with no heating or electric
resistance heating; and
‘‘(ii) 10.4 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 135,000 Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be 3.2 (at a
high temperature rating of 47 degrees F db).
‘‘(9) Very large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet
the following standards:
‘‘(A) The minimum energy efficiency ratio of air-cooled central air conditioners at or above 240,000 Btu per hour (cooling
capacity) and less than 760,000 Btu per hour (cooling capacity)
shall be—
‘‘(i) 10.0 for equipment with no heating or electric
resistance heating; and
‘‘(ii) 9.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(B) The minimum energy efficiency ratio of air-cooled central air conditioner heat pumps at or above 240,000 Btu per
hour (cooling capacity) and less than 760,000 Btu per hour
(cooling capacity) shall be—
‘‘(i) 9.5 for equipment with no heating or electric resistance heating; and
‘‘(ii) 9.3 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
‘‘(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 240,000 Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be 3.2 (at a
high temperature rating of 47 degrees F db).’’.
(c) STANDARDS FOR COMMERCIAL REFRIGERATORS, FREEZERS,
AND REFRIGERATOR-FREEZERS.—Section 342 of the Energy Policy
and Conservation Act (42 U.S.C. 6313) is amended by adding at
the end the following:
‘‘(c) COMMERCIAL REFRIGERATORS, FREEZERS, AND REFRIGERATOR-FREEZERS.—(1) In this subsection:
‘‘(A) The term ‘AV’ means the adjusted volume (ft3) (defined
as 1.63 x frozen temperature compartment volume (ft3) + chilled
temperature compartment volume (ft3)) with compartment volumes measured in accordance with the Association of Home
Appliance Manufacturers Standard HRF1–1979.

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‘‘(B) The term ‘V’ means the chilled or frozen compartment
volume (ft3) (as defined in the Association of Home Appliance
Manufacturers Standard HRF1–1979).
‘‘(C) Other terms have such meanings as may be established
by the Secretary, based on industry-accepted definitions and
practice.
‘‘(2) Each commercial refrigerator, freezer, and refrigeratorfreezer with a self-contained condensing unit designed for holding
temperature applications manufactured on or after January 1, 2010,
shall have a daily energy consumption (in kilowatt hours per day)
that does not exceed the following:

Refrigerators with solid doors ..........................
Refrigerators with transparent doors ..............
Freezers with solid doors ..................................
Freezers with transparent doors ......................
Refrigerators/freezers with solid doors the
greater of.

0.10 V + 2.04
0.12 V + 3.34
0.40 V + 1.38
0.75 V + 4.10
0.27 AV – 0.71 or
0.70.

‘‘(3) Each commercial refrigerator with a self-contained condensing unit designed for pull-down temperature applications and
transparent doors manufactured on or after January 1, 2010, shall
have a daily energy consumption (in kilowatt hours per day) of
not more than 0.126 V + 3.51.
‘‘(4)(A) Not later than January 1, 2009, the Secretary shall
issue, by rule, standard levels for ice-cream freezers, self-contained
commercial refrigerators, freezers, and refrigerator-freezers without
doors, and remote condensing commercial refrigerators, freezers,
and refrigerator-freezers, with the standard levels effective for
equipment manufactured on or after January 1, 2012.
‘‘(B) The Secretary may issue, by rule, standard levels for
other types of commercial refrigerators, freezers, and refrigeratorfreezers not covered by paragraph (2)(A) with the standard levels
effective for equipment manufactured 3 or more years after the
date on which the final rule is published.
‘‘(5)(A) Not later than January 1, 2013, the Secretary shall
issue a final rule to determine whether the standards established
under this subsection should be amended.
‘‘(B) Not later than 3 years after the effective date of any
amended standards under subparagraph (A) or the publication of
a final rule determining that the standards should not be amended,
the Secretary shall issue a final rule to determine whether the
standards established under this subsection or the amended standards, as applicable, should be amended.
‘‘(C) If the Secretary issues a final rule under subparagraph
(A) or (B) establishing amended standards, the final rule shall
provide that the amended standards apply to products manufactured on or after the date that is—
‘‘(i) 3 years after the date on which the final amended
standard is published; or
‘‘(ii) if the Secretary determines, by rule, that 3 years
is inadequate, not later than 5 years after the date on which
the final rule is published.’’.
(d) STANDARDS FOR AUTOMATIC COMMERCIAL ICE MAKERS.—
Section 342 of the Energy Policy and Conservation Act (42 U.S.C.

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Regulations.

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Regulations.

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6313) (as amended by subsection (c)) is amended by adding at
the end the following:
‘‘(d) AUTOMATIC COMMERCIAL ICE MAKERS.—(1) Each automatic
commercial ice maker that produces cube type ice with capacities
between 50 and 2500 pounds per 24-hour period when tested
according to the test standard established in section 343(a)(7) and
is manufactured on or after January 1, 2010, shall meet the following standard levels:

Equipment Type

Type of
Cooling

Harvest Rate
(lbs ice/24 hours)

Maximum
Energy Use
(kWh/100 lbs Ice)

Maximum
Condenser
Water Use
(gal/100 lbs Ice)

Ice Making Head

Water

<500

7.80–0.0055H

200–0.022H

≥500 and <1436

5.58–0.0011H

200–0.022H

≥1436

4.0

200–0.022H

<450

10.26–0.0086H

Not Applicable

≥450

6.89–0.0011H

Not Applicable

<1000

8.85–0.0038H

Not Applicable

≥1000

5.10

Not Applicable

<934

8.85–0.0038H

Not Applicable

≥934

5.3

Not Applicable

<200

11.40–0.019H

191–0.0315H

≥200

7.60

191–0.0315H

<175

18.0–0.0469H

Not Applicable

≥175

9.80

Not Applicable

Ice Making Head

Remote Condensing
(but not remote
compressor)

Remote Condensing
and Remote
Compressor

Self Contained

Self Contained

Air

Air

Air

Water

Air

H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.

Applicability.

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‘‘(2)(A) The Secretary may issue, by rule, standard levels for
types of automatic commercial ice makers that are not covered
by paragraph (1).
‘‘(B) The standards established under subparagraph (A) shall
apply to products manufactured on or after the date that is—
‘‘(i) 3 years after the date on which the rule is published
under subparagraph (A); or

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‘‘(ii) if the Secretary determines, by rule, that 3 years
is inadequate, not later than 5 years after the date on which
the final rule is published.
‘‘(3)(A) Not later than January 1, 2015, with respect to the
standards established under paragraph (1), and, with respect to
the standards established under paragraph (2), not later than 5
years after the date on which the standards take effect, the Secretary shall issue a final rule to determine whether amending
the applicable standards is technologically feasible and economically
justified.
‘‘(B) Not later than 5 years after the effective date of any
amended standards under subparagraph (A) or the publication of
a final rule determining that amending the standards is not technologically feasible or economically justified, the Secretary shall issue
a final rule to determine whether amending the standards established under paragraph (1) or the amended standards, as applicable,
is technologically feasible or economically justified.
‘‘(C) If the Secretary issues a final rule under subparagraph
(A) or (B) establishing amended standards, the final rule shall
provide that the amended standards apply to products manufactured on or after the date that is—
‘‘(i) 3 years after the date on which the final amended
standard is published; or
‘‘(ii) if the Secretary determines, by rule, that 3 years
is inadequate, not later than 5 years after the date on which
the final amended standard is published.
‘‘(4) A final rule issued under paragraph (2) or (3) shall establish
standards at the maximum level that is technically feasible and
economically justified, as provided in subsections (o) and (p) of
section 325.’’.
(e) STANDARDS FOR COMMERCIAL CLOTHES WASHERS.—Section
342 of the Energy Policy and Conservation Act (42 U.S.C. 6313)
(as amended by subsection (d)) is amended by adding at the end
the following:
‘‘(e) COMMERCIAL CLOTHES WASHERS.—(1) Each commercial
clothes washer manufactured on or after January 1, 2007, shall
have—
‘‘(A) a Modified Energy Factor of at least 1.26; and
‘‘(B) a Water Factor of not more than 9.5.
‘‘(2)(A)(i) Not later than January 1, 2010, the Secretary shall
publish a final rule to determine whether the standards established
under paragraph (1) should be amended.
‘‘(ii) The rule published under clause (i) shall provide that
any amended standard shall apply to products manufactured 3
years after the date on which the final amended standard is published.
‘‘(B)(i) Not later than January 1, 2015, the Secretary shall
publish a final rule to determine whether the standards established
under paragraph (1) should be amended.
‘‘(ii) The rule published under clause (i) shall provide that
any amended standard shall apply to products manufactured 3
years after the date on which the final amended standard is published.’’.
(f) TEST PROCEDURES.—Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended—
(1) in subsection (a)—
(A) in paragraph (4)—

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(i) in subparagraph (A), by inserting ‘‘very large
commercial package air conditioning and heating
equipment,’’ after ‘‘large commercial package air conditioning and heating equipment,’’; and
(ii) in subparagraph (B), by inserting ‘‘very large
commercial package air conditioning and heating
equipment,’’ after ‘‘large commercial package air conditioning and heating equipment,’’; and
(B) by adding at the end the following:
‘‘(6)(A)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers, the test procedures shall be—
‘‘(I) the test procedures determined by the Secretary to
be generally accepted industry testing procedures; or
‘‘(II) rating procedures developed or recognized by the
ASHRAE or by the American National Standards Institute.
‘‘(ii) In the case of self-contained refrigerators, freezers, and
refrigerator-freezers to which standards are applicable under paragraphs (2) and (3) of section 342(c), the initial test procedures
shall be the ASHRAE 117 test procedure that is in effect on January
1, 2005.
‘‘(B)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers with doors covered by the standards adopted
in February 2002, by the California Energy Commission, the rating
temperatures shall be the integrated average temperature of 38
degrees F ( ± 2 degrees F) for refrigerator compartments and 0
degrees F ( ± 2 degrees F) for freezer compartments.
‘‘(C) The Secretary shall issue a rule in accordance with paragraphs (2) and (3) to establish the appropriate rating temperatures
for the other products for which standards will be established
under section 342(c)(4).
‘‘(D) In establishing the appropriate test temperatures under
this subparagraph, the Secretary shall follow the procedures and
meet the requirements under section 323(e).
‘‘(E)(i) Not later than 180 days after the publication of the
new ASHRAE 117 test procedure, if the ASHRAE 117 test procedure
for commercial refrigerators, freezers, and refrigerator-freezers is
amended, the Secretary shall, by rule, amend the test procedure
for the product as necessary to ensure that the test procedure
is consistent with the amended ASHRAE 117 test procedure, unless
the Secretary makes a determination, by rule, and supported by
clear and convincing evidence, that to do so would not meet the
requirements for test procedures under paragraphs (2) and (3).
‘‘(ii) If the Secretary determines that 180 days is an insufficient
period during which to review and adopt the amended test procedure or rating procedure under clause (i), the Secretary shall publish
a notice in the Federal Register stating the intent of the Secretary
to wait not longer than 1 additional year before putting into effect
an amended test procedure or rating procedure.
‘‘(F)(i) If a test procedure other than the ASHRAE 117 test
procedure is approved by the American National Standards
Institute, the Secretary shall, by rule—
‘‘(I) review the relative strengths and weaknesses of the
new test procedure relative to the ASHRAE 117 test procedure;
and
‘‘(II) based on that review, adopt one new test procedure
for use in the standards program.
‘‘(ii) If a new test procedure is adopted under clause (i)—

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‘‘(I) section 323(e) shall apply; and
‘‘(II) subparagraph (B) shall apply to the adopted test procedure.
‘‘(7)(A) In the case of automatic commercial ice makers, the
test procedures shall be the test procedures specified in Air-Conditioning and Refrigeration Institute Standard 810–2003, as in effect
on January 1, 2005.
‘‘(B)(i) If Air-Conditioning and Refrigeration Institute Standard
810–2003 is amended, the Secretary shall amend the test procedures established in subparagraph (A) as necessary to be consistent
with the amended Air-Conditioning and Refrigeration Institute
Standard, unless the Secretary determines, by rule, published in
the Federal Register and supported by clear and convincing evidence, that to do so would not meet the requirements for test
procedures under paragraphs (2) and (3).
‘‘(ii) If the Secretary issues a rule under clause (i) containing
a determination described in clause (ii), the rule may establish
an amended test procedure for the product that meets the requirements of paragraphs (2) and (3).
‘‘(C) The Secretary shall comply with section 323(e) in establishing any amended test procedure under this paragraph.
‘‘(8) With respect to commercial clothes washers, the test procedures shall be the same as the test procedures established by
the Secretary for residential clothes washers under section 325(g).’’;
and
(2) in subsection (d)(1), by inserting ‘‘very large commercial
package air conditioning and heating equipment, commercial
refrigerators, freezers, and refrigerator-freezers, automatic
commercial ice makers, commercial clothes washers,’’ after
‘‘large commercial package air conditioning and heating equipment,’’.
(g) LABELING.—Section 344(e) of the Energy Policy and Conservation Act (42 U.S.C. 6315(e)) is amended by inserting ‘‘very
large commercial package air conditioning and heating equipment,
commercial refrigerators, freezers, and refrigerator-freezers, automatic commercial ice makers, commercial clothes washers,’’ after
‘‘large commercial package air conditioning and heating equipment,’’
each place it appears.
(h) ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION.—Section 345 of the Energy Policy and Conservation Act (42
U.S.C. 6316) is amended—
(1) in subsection (a)—
(A) in paragraph (7), by striking ‘‘and’’ at the end;
(B) in paragraph (8), by striking the period at the
end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(9) in the case of commercial clothes washers, section
327(b)(1) shall be applied as if the National Appliance Energy
Conservation Act of 1987 was the Energy Policy Act of 2005.’’;
(2) in the first sentence of subsection (b)(1), by striking
‘‘part B’’ and inserting ‘‘part A’’; and
(3) by adding at the end the following:
‘‘(d)(1) Except as provided in paragraphs (2) and (3), section
327 shall apply with respect to very large commercial package
air conditioning and heating equipment to the same extent and
in the same manner as section 327 applies under part A on the
date of enactment of this subsection.

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‘‘(2) Any State or local standard issued before the date of
enactment of this subsection shall not be preempted until the standards established under section 342(a)(9) take effect on January
1, 2010.
‘‘(e)(1)(A) Subsections (a), (b), and (d) of section 326, subsections
(m) through (s) of section 325, and sections 328 through 336 shall
apply with respect to commercial refrigerators, freezers, and refrigerator-freezers to the same extent and in the same manner as
those provisions apply under part A.
‘‘(B) In applying those provisions to commercial refrigerators,
freezers, and refrigerator-freezers, paragraphs (1), (2), (3), and (4)
of subsection (a) shall apply.
‘‘(2)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established under paragraphs (2) and (3) of section 342(c) to the same
extent and in the same manner as those provisions apply under
part A on the date of enactment of this subsection, except that
any State or local standard issued before the date of enactment
of this subsection shall not be preempted until the standards established under paragraphs (2) and (3) of section 342(c) take effect.
‘‘(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
‘‘(3)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established under section 342(c)(4) to the same extent and in the same
manner as the provisions apply under part A on the date of publication of the final rule by the Secretary, except that any State or
local standard issued before the date of publication of the final
rule by the Secretary shall not be preempted until the standards
take effect.
‘‘(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
‘‘(4)(A) If the Secretary does not issue a final rule for a specific
type of commercial refrigerator, freezer, or refrigerator-freezer
within the time frame specified in section 342(c)(5), subsections
(b) and (c) of section 327 shall not apply to that specific type
of refrigerator, freezer, or refrigerator-freezer for the period beginning on the date that is 2 years after the scheduled date for
a final rule and ending on the date on which the Secretary publishes
a final rule covering the specific type of refrigerator, freezer, or
refrigerator-freezer.
‘‘(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the final
rule takes effect.
‘‘(5)(A) In the case of any commercial refrigerator, freezer, or
refrigerator-freezer to which standards are applicable under paragraphs (2) and (3) of section 342(c), the Secretary shall require
manufacturers to certify, through an independent, nationally recognized testing or certification program, that the commercial refrigerator, freezer, or refrigerator-freezer meets the applicable standard.
‘‘(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 independent testing and
certification programs.
‘‘(C) As part of certification, information on equipment energy
use and interior volume shall be made available to the Secretary.
‘‘(f)(1)(A)(i) Except as provided in clause (ii), section 327 shall
apply to automatic commercial ice makers for which standards

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have been established under section 342(d)(1) to the same extent
and in the same manner as the section applies under part A
on the date of enactment of this subsection.
‘‘(ii) Any State standard issued before the date of enactment
of this subsection shall not be preempted until the standards established under section 342(d)(1) take effect.
‘‘(B) In applying section 327 to the equipment under subparagraph (A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
‘‘(2)(A)(i) Except as provided in clause (ii), section 327 shall
apply to automatic commercial ice makers for which standards
have been established under section 342(d)(2) to the same extent
and in the same manner as the section applies under part A
on the date of publication of the final rule by the Secretary.
‘‘(ii) Any State standard issued before the date of publication
of the final rule by the Secretary shall not be preempted until
the standards established under section 342(d)(2) take effect.
‘‘(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
‘‘(3)(A) If the Secretary does not issue a final rule for a specific
type of automatic commercial ice maker within the time frame
specified in section 342(d), subsections (b) and (c) of section 327
shall no longer apply to the specific type of automatic commercial
ice maker for the period beginning on the day after the scheduled
date for a final rule and ending on the date on which the Secretary
publishes a final rule covering the specific type of automatic
commercial ice maker.
‘‘(B) Any State standard issued before the publication of the
final rule shall not be preempted until the standards established
in the final rule take effect.
‘‘(4)(A) The Secretary shall monitor whether manufacturers are
reducing harvest rates below tested values for the purpose of
bringing non-complying equipment into compliance.
‘‘(B) If the Secretary finds that there has been a substantial
amount of manipulation with respect to harvest rates under
subparagraph (A), the Secretary shall take steps to minimize the
manipulation, such as requiring harvest rates to be within 5 percent
of tested values.
‘‘(g)(1)(A) If the Secretary does not issue a final rule for commercial clothes washers within the timeframe specified in section
342(e)(2), subsections (b) and (c) of section 327 shall not apply
to commercial clothes washers for the period beginning on the
day after the scheduled date for a final rule and ending on the
date on which the Secretary publishes a final rule covering commercial clothes washers.
‘‘(B) Any State or local standard issued before the date on
which the Secretary publishes a final rule shall not be preempted
until the standards established under section 342(e)(2) take effect.
‘‘(2) The Secretary shall undertake an educational program
to inform owners of laundromats, multifamily housing, and other
sites where commercial clothes washers are located about the new
standard, including impacts on washer purchase costs and options
for recovering those costs through coin collection.’’.
SEC. 137. ENERGY LABELING.

(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER PRODUCT
LABELING.—Section 324(a)(2) of the Energy Policy and Conservation

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PUBLIC LAW 109–58—AUG. 8, 2005

Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the
following:
‘‘(F)(i) Not later than 90 days after the date of enactment
of this subparagraph, the Commission shall initiate a rulemaking
to consider—
‘‘(I) the effectiveness of the consumer products labeling
program in assisting consumers in making purchasing decisions
and improving energy efficiency; and
‘‘(II) changes to the labeling rules (including categorical
labeling) that would improve the effectiveness of consumer
product labels.
‘‘(ii) Not later than 2 years after the date of enactment of
this subparagraph, the Commission shall complete the rulemaking
initiated under clause (i).
‘‘(G)(i) Not later than 18 months after the date of enactment
of this subparagraph, the Commission shall issue by rule, in accordance with this section, labeling requirements for the electricity
used by ceiling fans to circulate air in a room.
‘‘(ii) The rule issued under clause (i) shall apply to products
manufactured after the later of—
‘‘(I) January 1, 2009; or
‘‘(II) the date that is 60 days after the final rule is issued.’’.
(b) RULEMAKING ON LABELING FOR ADDITIONAL PRODUCTS.—
Section 324(a) of the Energy Policy and Conservation Act (42 U.S.C.
6294(a)) is amended by adding at the end the following:
‘‘(5)(A) For covered products described in subsections (u)
through (ff) of section 325, after a test procedure has been prescribed
under section 323, the Secretary or the Commission, as appropriate,
may prescribe, by rule, under this section labeling requirements
for the products.
‘‘(B) In the case of products to which TP–1 standards under
section 325(y) apply, labeling requirements shall be based on the
‘Standard for the Labeling of Distribution Transformer Efficiency’
prescribed by the National Electrical Manufacturers Association
(NEMA TP–3) as in effect on the date of enactment of this paragraph.
‘‘(C) In the case of dehumidifiers covered under section 325(dd),
the Commission shall not require an ‘Energy Guide’ label.’’.
SEC. 138. INTERMITTENT ESCALATOR STUDY.

(a) IN GENERAL.—The Administrator of General Services shall
conduct a study on the advantages and disadvantages of employing
intermittent escalators in the United States.
(b) CONTENTS.—Such study shall include an analysis of—
(1) the energy end-cost savings derived from the use of
intermittent escalators;
(2) the cost savings derived from reduced maintenance
requirements; and
(3) such other issues as the Administrator considers appropriate.
(c) REPORT TO CONGRESS.—Not later than 1 year after the
date of enactment of this Act, the Administrator shall transmit
to Congress a report on the results of the study.
(d) DEFINITION.—For purposes of this section, the term ‘‘intermittent escalator’’ means an escalator that remains in a stationary

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position until it automatically operates at the approach of a passenger, returning to a stationary position after the passenger completes passage.
SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES
STUDY.

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the National
Association of Regulatory Utility Commissioners and the National
Association of State Energy Officials, shall conduct a study of State
and regional policies that promote cost-effective programs to reduce
energy consumption (including energy efficiency programs) that
are carried out by—
(1) utilities that are subject to State regulation; and
(2) nonregulated utilities.
(b) CONSIDERATION.—In conducting the study under subsection
(a), the Secretary shall take into consideration—
(1) performance standards for achieving energy use and
demand reduction targets;
(2) funding sources, including rate surcharges;
(3) infrastructure planning approaches (including energy
efficiency programs) and infrastructure improvements;
(4) the costs and benefits of consumer education programs
conducted by State and local governments and local utilities
to increase consumer awareness of energy efficiency technologies and measures; and
(5) methods of—
(A) removing disincentives for utilities to implement
energy efficiency programs;
(B) encouraging utilities to undertake voluntary energy
efficiency programs; and
(C) ensuring appropriate returns on energy efficiency
programs.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Secretary shall submit to Congress a report that
includes—
(1) the findings of the study; and
(2) any recommendations of the Secretary, including recommendations on model policies to promote energy efficiency
programs.

Deadline.

SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

42 USC 15833.

(a) IN GENERAL.—The Secretary shall establish a pilot program
under which the Secretary provides financial assistance to at least
3, but not more than 7, States to carry out pilot projects in the
States for—
(1) planning and adopting statewide programs that encourage, for each year in which the pilot project is carried out—
(A) energy efficiency; and
(B) reduction of consumption of electricity or natural
gas in the State by at least 0.75 percent, as compared
to a baseline determined by the Secretary for the period
preceding the implementation of the program; or
(2) for any State that has adopted a statewide program
as of the date of enactment of this Act, activities that reduce
energy consumption in the State by expanding and improving
the program.

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(b) VERIFICATION.—A State that receives financial assistance
under subsection (a)(1) shall submit to the Secretary independent
verification of any energy savings achieved through the statewide
program.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2006 through 2010, to remain available until
expended.
42 USC 15834.

SEC. 141. REPORT ON FAILURE TO COMPLY WITH DEADLINES FOR
NEW OR REVISED ENERGY CONSERVATION STANDARDS.

(a) INITIAL REPORT.—The Secretary shall submit a report to
Congress regarding each new or revised energy conservation or
water use standard which the Secretary has failed to issue in
conformance with the deadlines established in the Energy Policy
and Conservation Act. Such report shall state the reasons why
the Secretary has failed to comply with the deadline for issuances
of the new or revised standard and set forth the Secretary’s plan
for expeditiously prescribing such new or revised standard. The
Secretary’s initial report shall be submitted not later than 6 months
following enactment of this Act and subsequent reports shall be
submitted whenever the Secretary determines that additional deadlines for issuance of new or revised standards have been missed.
(b) IMPLEMENTATION REPORT.—Every 6 months following the
submission of a report under subsection (a) until the adoption
of a new or revised standard described in such report, the Secretary
shall submit to the Congress an implementation report describing
the Secretary’s progress in implementing the Secretary’s plan or
the issuance of the new or revised standard.

Subtitle D—Public Housing
SEC. 151. PUBLIC HOUSING CAPITAL FUND.

Section 9 of the United States Housing Act of 1937 (42 U.S.C.
1437g) is amended—
(1) in subsection (d)(1)—
(A) in subparagraph (I), by striking ‘‘and’’ at the end;
(B) in subparagraph (J), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
‘‘(K) improvement of energy and water-use efficiency
by installing fixtures and fittings that conform to the American Society of Mechanical Engineers/American National
Standards Institute standards A112.19.2–1998 and
A112.18.1–2000, or any revision thereto, applicable at the
time of installation, and by increasing energy efficiency
and water conservation by such other means as the Secretary determines are appropriate; and
‘‘(L) integrated utility management and capital planning to maximize energy conservation and efficiency measures.’’; and
(2) in subsection (e)(2)(C)—
(A) by striking ‘‘The’’ and inserting the following:
‘‘(i) IN GENERAL.—The’’; and
(B) by adding at the end the following:

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‘‘(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, and adjustments to frozen base
year consumption, including systems repaired to meet
applicable building and safety codes and adjustments
for occupancy rates increased by rehabilitation.
‘‘(iii) TERM OF CONTRACT.—The total term of a
contract described in clause (i) shall not exceed 20
years to allow longer payback periods for retrofits,
including windows, heating system replacements, wall
insulation, site-based generation, advanced energy
savings technologies, including renewable energy
generation, and other such retrofits.’’.
SEC. 152. ENERGY-EFFICIENT APPLIANCES.

42 USC 15841.

In purchasing appliances, a public housing agency shall purchase energy-efficient appliances that are Energy Star products
or FEMP-designated products, as such terms are defined in section
553 of the National Energy Conservation Policy Act, unless the
purchase of energy-efficient appliances is not cost-effective to the
agency.
SEC. 153. ENERGY EFFICIENCY STANDARDS.

Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘1 year after the date of the enactment of the Energy Policy Act of 1992’’ and inserting
‘‘September 30, 2006’’;
(ii) in subparagraph (A), by striking ‘‘and’’ at the
end;
(iii) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(iv) by adding at the end the following:
‘‘(C) rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
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 inserting ‘‘, and, with respect
to rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of 1937
(42 U.S.C. 1437v), the 2003 International Energy Conservation Code’’ after ‘‘90.1–1989’)’’;
(2) in subsection (b)—
(A) by striking ‘‘within 1 year after the date of the
enactment of the Energy Policy Act of 1992’’ and inserting
‘‘by September 30, 2006’’; and
(B) by inserting ‘‘, and, with respect to rehabilitation
and new construction of public and assisted housing funded
by HOPE VI revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C. 1437v), the
2003 International Energy Conservation Code’’ before the
period at the end; and

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(3) in subsection (c)—
(A) in the heading, by inserting ‘‘AND THE INTERNATIONAL ENERGY CONSERVATION CODE’’ after ‘‘MODEL
ENERGY CODE’’; and
(B) by inserting ‘‘, or, with respect to rehabilitation
and new construction of public and assisted housing funded
by HOPE VI revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C. 1437v), the
2003 International Energy Conservation Code’’ after
‘‘1989’’.

42 USC 15842.

SEC. 154. ENERGY STRATEGY FOR HUD.

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
and energy efficient design and construction of public and assisted
housing. The energy strategy shall include the development of
energy reduction goals and incentives for public housing agencies.
The Secretary shall submit a report to Congress, not later than
1 year after the date of the enactment of this Act, on the energy
strategy and the actions taken by the Department of Housing
and Urban Development to monitor the energy usage of public
housing agencies and shall submit an update every 2 years thereafter on progress in implementing the strategy.

Reports.
Deadlines.

TITLE II—RENEWABLE ENERGY
Subtitle A—General Provisions

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42 USC 15851.

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

Deadlines.

(a) RESOURCE ASSESSMENT.—Not later than 6 months after
the date of enactment of this Act, and each year thereafter, the
Secretary shall review the available assessments of renewable
energy resources within the United States, including solar, wind,
biomass, ocean (including tidal, wave, current, and thermal), geothermal, and hydroelectric energy resources, and undertake new
assessments as necessary, taking into account changes in market
conditions, available technologies, and other relevant factors.
(b) CONTENTS OF REPORTS.—Not later than 1 year after the
date of enactment of this Act, and each year thereafter, the Secretary shall publish a report based on the assessment under subsection (a). The report shall contain—
(1) a detailed inventory describing the available amount
and characteristics of the renewable energy resources; and
(2) such other information as the Secretary believes would
be useful in developing such renewable energy resources,
including descriptions of surrounding terrain, population and
load centers, nearby energy infrastructure, location of energy
and water resources, and available estimates of the costs needed
to develop each resource, together with an identification of
any barriers to providing adequate transmission for remote
sources of renewable energy resources to current and emerging
markets, recommendations for removing or addressing such
barriers, and ways to provide access to the grid that do not
unfairly disadvantage renewable or other energy producers.

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(c) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of
this section, there are authorized to be appropriated to the Secretary
$10,000,000 for each of fiscal years 2006 through 2010.

42 USC 13311
note.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

(a) INCENTIVE PAYMENTS.—Section 1212(a) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(a)) is amended—
(1) by striking the last sentence;
(2) by designating the first, second, and third sentences
as paragraphs (1), (2), and (3), respectively;
(3) in paragraph (3) (as so designated), by striking ‘‘and
which satisfies’’ and all that follows through ‘‘deems necessary’’;
and
(4) by adding at the end the following:
‘‘(4)(A) Subject to subparagraph (B), if there are insufficient
appropriations to make full payments for electric production from
all qualified renewable energy facilities for a fiscal year, the Secretary shall assign—
‘‘(i) 60 percent of appropriated funds for the fiscal year
to facilities that use solar, wind, ocean (including tidal, wave,
current, and thermal), geothermal, or closed-loop (dedicated
energy crops) biomass technologies to generate electricity; and
‘‘(ii) 40 percent of appropriated funds for the fiscal year
to other projects.
‘‘(B) After submitting to Congress an explanation of the reasons
for the alteration, the Secretary may alter the percentage requirements of subparagraph (A).’’.
(b) QUALIFIED RENEWABLE ENERGY FACILITY.—Section 1212(b)
of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended—
(1) by striking ‘‘a State or any political’’ and all that follows
through ‘‘nonprofit electrical cooperative’’ and inserting ‘‘a notfor-profit electric cooperative, a public utility described in section 115 of the Internal Revenue Code of 1986, a State,
Commonwealth, territory, or possession of the United States,
or the District of Columbia, or a political subdivision thereof,
an Indian tribal government or subdivision thereof, or a Native
Corporation (as defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)),’’; and
(2) by inserting ‘‘landfill gas, livestock methane, ocean
(including tidal, wave, current, and thermal),’’ after ‘‘wind, biomass,’’.
(c) ELIGIBILITY WINDOW.—Section 1212(c) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(c)) is amended by striking ‘‘during
the 10-fiscal year period beginning with the first full fiscal year
occurring after the enactment of this section’’ and inserting ‘‘before
October 1, 2016’’.
(d) PAYMENT PERIOD.—Section 1212(d) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(d)) is amended in the second sentence
by inserting ‘‘, or in which the Secretary determines that all necessary Federal and State authorizations have been obtained to
begin construction of the facility’’ after ‘‘eligible for such payments’’.
(e) AMOUNT OF PAYMENT.—Section 1212(e)(1) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first
sentence by inserting ‘‘landfill gas, livestock methane, ocean
(including tidal, wave, current, and thermal),’’ after ‘‘wind, biomass,’’.

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(f) TERMINATION OF AUTHORITY.—Section 1212(f) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by striking
‘‘the expiration of’’ and all that follows through ‘‘of this section’’
and inserting ‘‘September 30, 2026’’.
(g) AUTHORIZATION OF APPROPRIATIONS.—Section 1212 of the
Energy Policy Act of 1992 (42 U.S.C. 13317) is amended by striking
subsection (g) and inserting the following:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2006 through 2026, to remain available until expended.’’.

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42 USC 15852.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

President.

(a) REQUIREMENT.—The President, acting through the Secretary, shall seek to ensure that, to the extent economically feasible
and technically practicable, of the total amount of electric energy
the Federal Government consumes during any fiscal year, the following amounts shall be renewable energy:
(1) Not less than 3 percent in fiscal years 2007 through
2009.
(2) Not less than 5 percent in fiscal years 2010 through
2012.
(3) Not less than 7.5 percent in fiscal year 2013 and each
fiscal year thereafter.
(b) DEFINITIONS.—In this section:
(1) BIOMASS.—The term ‘‘biomass’’ means any lignin waste
material that is segregated from other waste materials and
is determined to be nonhazardous by the Administrator of
the Environmental Protection Agency and any solid, nonhazardous, cellulosic material that is derived from—
(A) any of the following forest-related resources: mill
residues, precommercial thinnings, slash, and brush, or
nonmerchantable material;
(B) solid wood waste materials, including waste pallets,
crates, dunnage, manufacturing and construction wood
wastes (other than pressure-treated, chemically-treated, or
painted wood wastes), and landscape or right-of-way tree
trimmings, but not including municipal solid waste (garbage), gas derived from the biodegradation of solid waste,
or paper that is commonly recycled;
(C) agriculture wastes, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop by-products
or residues, and livestock waste nutrients; or
(D) a plant that is grown exclusively as a fuel for
the production of electricity.
(2) RENEWABLE ENERGY.—The term ‘‘renewable energy’’
means electric energy generated from solar, wind, biomass,
landfill gas, ocean (including tidal, wave, current, and thermal),
geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions
of new capacity at an existing hydroelectric project.
(c) CALCULATION.—For purposes of determining compliance
with the requirement of this section, the amount of renewable
energy shall be doubled if—
(1) the renewable energy is produced and used on-site
at a Federal facility;

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(2) the renewable energy is produced on Federal lands
and used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) and used at a Federal facility.
(d) REPORT.—Not later than April 15, 2007, and every 2 years
thereafter, the Secretary shall provide a report to Congress on
the progress of the Federal Government in meeting the goals established by this section.
SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

(a) IN GENERAL.—Subchapter VI of chapter 31 of title 40,
United States Code, is amended by adding at the end the following:
‘‘§ 3177. Use of photovoltaic energy in public buildings
‘‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION PROGRAM.—
‘‘(1) IN GENERAL.—The Administrator of General Services
may establish a photovoltaic energy commercialization program
for the procurement and installation of photovoltaic solar electric systems for electric production in new and existing public
buildings.
‘‘(2) PURPOSES.—The purposes of the program shall be to
accomplish the following:
‘‘(A) To accelerate the growth of a commercially viable
photovoltaic industry to make this energy system available
to the general public as an option which can reduce the
national consumption of fossil fuel.
‘‘(B) To reduce the fossil fuel consumption and costs
of the Federal Government.
‘‘(C) To attain the goal of installing solar energy systems in 20,000 Federal buildings by 2010, as contained
in the Federal Government’s Million Solar Roof Initiative
of 1997.
‘‘(D) To stimulate the general use within the Federal
Government of life-cycle costing and innovative procurement methods.
‘‘(E) To develop program performance data to support
policy decisions on future incentive programs with respect
to energy.
‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR ELECTRIC SYSTEMS.—
‘‘(A) IN GENERAL.—The program shall provide for the
acquisition of photovoltaic solar electric systems and associated storage capability for use in public buildings.
‘‘(B) ACQUISITION LEVELS.—The acquisition of photovoltaic electric systems shall be at a level substantial
enough to allow use of low-cost production techniques with
at least 150 megawatts (peak) cumulative acquired during
the 5 years of the program.
‘‘(4) ADMINISTRATION.—The Administrator shall administer
the program and shall—
‘‘(A) issue such rules and regulations as may be appropriate to monitor and assess the performance and operation
of photovoltaic solar electric systems installed pursuant
to this subsection;
‘‘(B) develop innovative procurement strategies for the
acquisition of such systems; and

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‘‘(C) transmit to Congress an annual report on the
results of the program.
‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PROGRAM.—
‘‘(1) IN GENERAL.—Not later than 60 days after the date
of enactment of this section, the Administrator shall establish
a photovoltaic solar energy systems evaluation program to
evaluate such photovoltaic solar energy systems as are required
in public buildings.
‘‘(2) PROGRAM REQUIREMENT.—In evaluating photovoltaic
solar energy systems under the program, the Administrator
shall ensure that such systems reflect the most advanced technology.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZATION PROGRAM.—There are authorized to be appropriated to carry out
subsection (a) $50,000,000 for each of fiscal years 2006 through
2010. Such sums shall remain available until expended.
‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION PROGRAM.—There
are authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.’’.
(b) CONFORMING AMENDMENT.—The table of sections for the
National Energy Conservation Policy Act is amended by inserting
after the item relating to section 569 the following:
‘‘Sec. 570. Use of photovoltaic energy in public buildings.’’.
SEC. 205. BIOBASED PRODUCTS.

Section 9002(c)(1) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by inserting ‘‘or such
items that comply with the regulations issued under section 103
of Public Law 100–556 (42 U.S.C. 6914b–1)’’ after ‘‘practicable’’.
SEC. 206. RENEWABLE ENERGY SECURITY.

Regulations.

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(a) WEATHERIZATION ASSISTANCE.—Section 415(c) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)) is amended—
(1) in paragraph (1), by striking ‘‘in paragraph (3)’’ and
inserting ‘‘in paragraphs (3) and (4)’’;
(2) in paragraph (3), by striking ‘‘$2,500 per dwelling unit
average provided in paragraph (1)’’ and inserting ‘‘dwelling
unit averages provided in paragraphs (1) and (4)’’; and
(3) by adding at the end the following new paragraphs:
‘‘(4) The expenditure of financial assistance provided under
this part for labor, weatherization materials, and related matters
for a renewable energy system shall not exceed an average of
$3,000 per dwelling unit.
‘‘(5)(A) The Secretary shall by regulations—
‘‘(i) establish the criteria which are to be used in prescribing
performance and quality standards under paragraph (6)(A)(ii)
or in specifying any form of renewable energy under paragraph
(6)(A)(i)(I); and
‘‘(ii) establish a procedure under which a manufacturer
of an item may request the Secretary to certify that the item
will be treated, for purposes of this paragraph, as a renewable
energy system.
‘‘(B) The Secretary shall make a final determination with
respect to any request filed under subparagraph (A)(ii) within 1

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year after the filing of the request, together with any information
required to be filed with such request under subparagraph (A)(ii).
‘‘(C) Each month the Secretary shall publish a report of any
request under subparagraph (A)(ii) which has been denied during
the preceding month and the reasons for the denial.
‘‘(D) The Secretary shall not specify any form of renewable
energy under paragraph (6)(A)(i)(I) unless the Secretary determines
that—
‘‘(i) there will be a reduction in oil or natural gas consumption as a result of such specification;
‘‘(ii) such specification will not result in an increased use
of any item which is known to be, or reasonably suspected
to be, environmentally hazardous or a threat to public health
or safety; and
‘‘(iii) available Federal subsidies do not make such specification unnecessary or inappropriate (in the light of the most
advantageous allocation of economic resources).
‘‘(6) In this subsection—
‘‘(A) the term ‘renewable energy system’ means a system
which—
‘‘(i) when installed in connection with a dwelling, transmits or uses—
‘‘(I) solar energy, energy derived from the geothermal deposits, energy derived from biomass, or any
other form of renewable energy which the Secretary
specifies by regulations, for the purpose of heating
or cooling such dwelling or providing hot water or
electricity for use within such dwelling; or
‘‘(II) wind energy for nonbusiness residential purposes;
‘‘(ii) meets the performance and quality standards (if
any) which have been prescribed by the Secretary by regulations;
‘‘(iii) in the case of a combustion rated system, has
a thermal efficiency rating of at least 75 percent; and
‘‘(iv) in the case of a solar system, has a thermal
efficiency rating of at least 15 percent; and
‘‘(B) the term ‘biomass’ means any organic matter that
is available on a renewable or recurring basis, including agricultural crops and trees, wood and wood wastes and residues,
plants (including aquatic plants), grasses, residues, fibers, and
animal wastes, municipal wastes, and other waste materials.’’.
(b) DISTRICT HEATING AND COOLING PROGRAMS.—Section 172
of the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is
amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of paragraph (3);
(B) by striking the period at the end of paragraph
(4) and inserting ‘‘; and’’; and
(C) by adding at the end the following new paragraph:
‘‘(5) evaluate the use of renewable energy systems (as such
term is defined in section 415(c) of the Energy Conservation
and Production Act (42 U.S.C. 6865(c))) in residential
buildings.’’; and
(2) in subsection (b), by striking ‘‘this Act’’ and inserting
‘‘the Energy Policy Act of 2005’’.
(c) REBATE PROGRAM.—

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Reports.

42 USC 15853.

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(1) ESTABLISHMENT.—The Secretary shall establish a program providing rebates for consumers for expenditures made
for the installation of a renewable energy system in connection
with a dwelling unit or small business.
(2) AMOUNT OF REBATE.—Rebates provided under the program established under paragraph (1) shall be in an amount
not to exceed the lesser of—
(A) 25 percent of the expenditures described in paragraph (1) made by the consumer; or
(B) $3,000.
(3) DEFINITION.—For purposes of this subsection, the term
‘‘renewable energy system’’ has the meaning given that term
in section 415(c)(6)(A) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3)
of this section.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary for carrying out this
subsection, to remain available until expended—
(A) $150,000,000 for fiscal year 2006;
(B) $150,000,000 for fiscal year 2007;
(C) $200,000,000 for fiscal year 2008;
(D) $250,000,000 for fiscal year 2009; and
(E) $250,000,000 for fiscal year 2010.
(d) RENEWABLE FUEL INVENTORY.—Not later than 180 days
after the date of enactment of this Act, the Secretary shall transmit
to Congress a report containing—
(1) an inventory of renewable fuels available for consumers;
and
(2) a projection of future inventories of renewable fuels
based on the incentives provided in this section.

Deadline.
Reports.

SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.
Appropriation
authorization.

There is authorized to be appropriated to the General Services
Administration to install a photovoltaic system, as set forth in
the Sun Wall Design Project, for the headquarters building of
the Department of Energy located at 1000 Independence Avenue
Southwest in the District of Columbia, commonly know as the
Forrestal Building, $20,000,000 for fiscal year 2006. Such sums
shall remain available until expended.

42 USC 15854.

SEC. 208. SUGAR CANE ETHANOL PROGRAM.

(a) DEFINITION OF PROGRAM.—In this section, the term ‘‘program’’ means the Sugar Cane Ethanol Program established by
subsection (b).
(b) ESTABLISHMENT.—There is established within the Environmental Protection Agency a program to be known as the ‘‘Sugar
Cane Ethanol Program’’.
(c) PROJECT.—
(1) IN GENERAL.—Subject to the availability of appropriations under subsection (d), in carrying out the program, the
Administrator of the Environmental Protection Agency shall
establish a project that is—
(A) carried out in multiple States—
(i) in each of which is produced cane sugar that
is eligible for loans under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272), or a similar subsequent authority; and

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(ii) at the option of each such State, that have
an incentive program that requires the use of ethanol
in the State; and
(B) designed to study the production of ethanol from
cane sugar, sugarcane, and sugarcane byproducts.
(2) REQUIREMENTS.—A project described in paragraph (1)
shall—
(A) be limited to sugar producers and the production
of ethanol in the States of Florida, Louisiana, Texas, and
Hawaii, divided equally among the States, to demonstrate
that the process may be applicable to cane sugar, sugarcane, and sugarcane byproducts;
(B) include information on the ways in which the scale
of production may be replicated once the sugar cane
industry has located sites for, and constructed, ethanol
production facilities; and
(C) not last more than 3 years.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $36,000,000, to remain
available until expended.
SEC.

209.

RURAL AND
GRANTS.

REMOTE

COMMUNITY

ELECTRIFICATION

The Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 et seq.) is amended in title VI by adding at the end the
following:
‘‘SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION
GRANTS.

7 USC 918c.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) The term ‘eligible grantee’ means a local government
or municipality, peoples’ utility district, irrigation district, and
cooperative, nonprofit, or limited-dividend association in a rural
area.
‘‘(2) The term ‘incremental hydropower’ means additional
generation achieved from increased efficiency after January
1, 2005, at a hydroelectric dam that was placed in service
before January 1, 2005.
‘‘(3) The term ‘renewable energy’ means electricity generated from—
‘‘(A) a renewable energy source; or
‘‘(B) hydrogen, other than hydrogen produced from a
fossil fuel, that is produced from a renewable energy source.
‘‘(4) The term ‘renewable energy source’ means—
‘‘(A) wind;
‘‘(B) ocean waves;
‘‘(C) biomass;
‘‘(D) solar;
‘‘(E) landfill gas;
‘‘(F) incremental hydropower;
‘‘(G) livestock methane; or
‘‘(H) geothermal energy.
‘‘(5) The term ‘rural area’ means a city, town, or unincorporated area that has a population of not more than 10,000
inhabitants.
‘‘(b) GRANTS.—The Secretary, in consultation with the Secretary
of Agriculture and the Secretary of the Interior, may provide grants
under this section to eligible grantees for the purpose of—

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‘‘(1) increasing energy efficiency, siting or upgrading transmission and distribution lines serving rural areas; or
‘‘(2) providing or modernizing electric generation facilities
that serve rural areas.
‘‘(c) GRANT ADMINISTRATION.—(1) The Secretary shall make
grants under this section based on a determination of cost-effectiveness and the most effective use of the funds to achieve the purposes
described in subsection (b).
‘‘(2) For each fiscal year, the Secretary shall allocate grant
funds under this section equally between the purposes described
in paragraphs (1) and (2) of subsection (b).
‘‘(3) In making grants for the purposes described in subsection
(b)(2), the Secretary shall give preference to renewable energy facilities.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Secretary to carry out this section
$20,000,000 for each of fiscal years 2006 through 2012.’’.
42 USC 15855.

SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST
BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, AND OTHER COMMERCIAL
PURPOSES.

(a) DEFINITIONS.—In this section:
(1) BIOMASS.—The term ‘‘biomass’’ means nonmerchantable
materials or precommercial thinnings that are byproducts of
preventive treatments, such as trees, wood, brush, thinnings,
chips, and slash, that are removed—
(A) to reduce hazardous fuels;
(B) to reduce or contain disease or insect infestation;
or
(C) to restore forest health.
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given the term in section 4(e) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e)).
(3) NONMERCHANTABLE.—For purposes of subsection (b),
the term ‘‘nonmerchantable’’ means that portion of the
byproducts of preventive treatments that would not otherwise
be used for higher value products.
(4) PERSON.—The term ‘‘person’’ includes—
(A) an individual;
(B) a community (as determined by the Secretary concerned);
(C) an Indian tribe;
(D) a small business or a corporation that is incorporated in the United States; and
(E) a nonprofit organization.
(5) PREFERRED COMMUNITY.—The term ‘‘preferred community’’ means—
(A) any Indian tribe;
(B) any town, township, municipality, or other similar
unit of local government (as determined by the Secretary
concerned) that—
(i) has a population of not more than 50,000
individuals; and
(ii) the Secretary concerned, in the sole discretion
of the Secretary concerned, determines contains or is
located near Federal or Indian land, the condition of

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which is at significant risk of catastrophic wildfire,
disease, or insect infestation or which suffers from
disease or insect infestation; or
(C) any county that—
(i) is not contained within a metropolitan statistical area; and
(ii) the Secretary concerned, in the sole discretion
of the Secretary concerned, determines contains or is
located near Federal or Indian land, the condition of
which is at significant risk of catastrophic wildfire,
disease, or insect infestation or which suffers from
disease or insect infestation.
(6) SECRETARY CONCERNED.—The term ‘‘Secretary concerned’’ means the Secretary of Agriculture or the Secretary
of the Interior.
(b) BIOMASS COMMERCIAL USE GRANT PROGRAM.—
(1) IN GENERAL.—The Secretary concerned may make
grants to any person in a preferred community that owns
or operates a facility that uses biomass as a raw material
to produce electric energy, sensible heat, or transportation fuels
to offset the costs incurred to purchase biomass for use by
such facility.
(2) GRANT AMOUNTS.—A grant under this subsection may
not exceed $20 per green ton of biomass delivered.
(3) MONITORING OF GRANT RECIPIENT ACTIVITIES.—As a
condition of a grant under this subsection, the grant recipient
shall keep such records as the Secretary concerned may require
to fully and correctly disclose the use of the grant funds and
all transactions involved in the purchase of biomass. Upon
notice by a representative of the Secretary concerned, the grant
recipient shall afford the representative reasonable access to
the facility that purchases or uses biomass and an opportunity
to examine the inventory and records of the facility.
(c) IMPROVED BIOMASS USE GRANT PROGRAM.—
(1) IN GENERAL.—The Secretary concerned may make
grants to persons to offset the cost of projects to develop or
research opportunities to improve the use of, or add value
to, biomass. In making such grants, the Secretary concerned
shall give preference to persons in preferred communities.
(2) SELECTION.—The Secretary concerned shall select a
grant recipient under paragraph (1) after giving consideration
to—
(A) the anticipated public benefits of the project,
including the potential to develop thermal or electric energy
resources or affordable energy;
(B) opportunities for the creation or expansion of small
businesses and micro-businesses;
(C) the potential for new job creation;
(D) the potential for the project to improve efficiency
or develop cleaner technologies for biomass utilization; and
(E) the potential for the project to reduce the hazardous
fuels from the areas in greatest need of treatment.
(3) GRANT AMOUNT.—A grant under this subsection may
not exceed $500,000.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated $50,000,000 for each of the fiscal years 2006
through 2016 to carry out this section.

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PUBLIC LAW 109–58—AUG. 8, 2005

(e) REPORT.—Not later than October 1, 2010, the Secretary
of Agriculture, in consultation with the Secretary of the Interior,
shall submit to the Committee on Energy and Natural Resources
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate, and the Committee on Resources, the Committee on Energy
and Commerce, and the Committee on Agriculture of the House
of Representatives, a report describing the results of the grant
programs authorized by this section. The report shall include the
following:
(1) An identification of the size, type, and use of biomass
by persons that receive grants under this section.
(2) The distance between the land from which the biomass
was removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible operations.
SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY
OF
ELECTRICITY
FROM
RENEWABLE
ENERGY
RESOURCES ON PUBLIC LANDS.

It is the sense of the Congress that the Secretary of the Interior
should, before the end of the 10-year period beginning on the
date of enactment of this Act, seek to have approved non-hydropower renewable energy projects located on the public lands with
a generation capacity of at least 10,000 megawatts of electricity.
John Rishel
Geothermal
Steam Act
Amendments of
2005.
30 USC 1001
note.

Subtitle B—Geothermal Energy
SEC. 221. SHORT TITLE.

This subtitle may be cited as the ‘‘John Rishel Geothermal
Steam Act Amendments of 2005’’.
SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.

Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C.
1003) is amended to read as follows:
‘‘SEC. 4. LEASING PROCEDURES.

‘‘(a) NOMINATIONS.—The Secretary shall accept nominations of
land to be leased at any time from qualified companies and individuals under this Act.
‘‘(b) COMPETITIVE LEASE SALE REQUIRED.—
‘‘(1) IN GENERAL.—Except as otherwise specifically provided
by this Act, all land to be leased that is not subject to leasing
under subsection (c) shall be leased as provided in this subsection to the highest responsible qualified bidder, as determined by the Secretary.
‘‘(2) COMPETITIVE LEASE SALES.—The Secretary shall hold
a competitive lease sale at least once every 2 years for land
in a State that has nominations pending under subsection
(a) if the land is otherwise available for leasing.
‘‘(3) LANDS SUBJECT TO MINING CLAIMS.—Lands that are
subject to a mining claim for which a plan of operations has
been approved by the relevant Federal land management
agency may be available for noncompetitive leasing under this
section to the mining claim holder.
‘‘(c) NONCOMPETITIVE LEASING.—The Secretary shall make
available for a period of 2 years for noncompetitive leasing any

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119 STAT. 661

tract for which a competitive lease sale is held, but for which
the Secretary does not receive any bids in a competitive lease
sale.
‘‘(d) PENDING LEASE APPLICATIONS.—
‘‘(1) IN GENERAL.—It shall be a priority for the Secretary,
and for the Secretary of Agriculture with respect to National
Forest Systems land, to ensure timely completion of administrative actions, including amendments to applicable forest plans
and resource management plans, necessary to process applications for geothermal leasing pending on the date of enactment
of this subsection. All future forest plans and resource management plans for areas with high geothermal resource potential
shall consider geothermal leasing and development.
‘‘(2) ADMINISTRATION.—An application described in paragraph (1) and any lease issued pursuant to the application—
‘‘(A) except as provided in subparagraph (B), shall be
subject to this section as in effect on the day before the
date of enactment of this paragraph; or
‘‘(B) at the election of the applicant, shall be subject
to this section as in effect on the effective date of this
paragraph.
‘‘(e) LEASES SOLD AS A BLOCK.—If information is available
to the Secretary indicating a geothermal resource that could be
produced as 1 unit can reasonably be expected to underlie more
than 1 parcel to be offered in a competitive lease sale, the parcels
for such a resource may be offered for bidding as a block in the
competitive lease sale.’’.
SEC. 223. DIRECT USE.

(a) FEES FOR DIRECT USE.—Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is amended—
(1) in subsection (c), by redesignating paragraphs (1) and
(2) as subparagraphs (A) and (B), respectively;
(2) by redesignating subsections (a) through (d) as paragraphs (1) through (4), respectively;
(3) by inserting ‘‘(a) IN GENERAL.—’’ after ‘‘SEC. 5.’’; and
(4) by adding at the end the following:
‘‘(b) DIRECT USE.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (a)(1), the
Secretary shall establish a schedule of fees, in lieu of royalties
for geothermal resources, that a lessee or its affiliate—
‘‘(A) uses for a purpose other than the commercial
generation of electricity; and
‘‘(B) does not sell.
‘‘(2) SCHEDULE OF FEES.—The schedule of fees—
‘‘(A) may be based on the quantity or thermal content,
or both, of geothermal resources used;
‘‘(B) shall ensure a fair return to the United States
for use of the resource; and
‘‘(C) shall encourage development of the resource.
‘‘(3) STATE, TRIBAL, OR LOCAL GOVERNMENTS.—If a State,
tribal, or local government is the lessee and uses geothermal
resources without sale and for public purposes other than
commercial generation of electricity, the Secretary shall charge
only a nominal fee for use of the resource.

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119 STAT. 662

Notice.
Deadline.

30 USC 1004
note.

PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(4) FINAL REGULATION.—In issuing any final regulation
establishing a schedule of fees under this subsection, the Secretary shall seek—
‘‘(A) to provide lessees with a simplified administrative
system;
‘‘(B) to facilitate development of direct use of geothermal resources; and
‘‘(C) to contribute to sustainable economic development
opportunities in the area.’’.
(b) LEASING FOR DIRECT USE.—Section 4 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 222)
is further amended by adding at the end the following:
‘‘(f) LEASING FOR DIRECT USE OF GEOTHERMAL RESOURCES.—
Notwithstanding subsection (b), the Secretary may identify areas
in which the land to be leased under this Act exclusively for direct
use of geothermal resources, without sale for purposes other than
commercial generation of electricity, may be leased to any qualified
applicant that first applies for such a lease under regulations issued
by the Secretary, if the Secretary—
‘‘(1) publishes a notice of the land proposed for leasing
not later than 90 days before the date of the issuance of
the lease;
‘‘(2) does not receive during the 90-day period beginning
on the date of the publication any nomination to include the
land concerned in the next competitive lease sale; and
‘‘(3) determines there is no competitive interest in the
geothermal resources in the land to be leased.
‘‘(g) AREA SUBJECT TO LEASE FOR DIRECT USE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a geothermal
lease for the direct use of geothermal resources shall cover
not more than the quantity of acreage determined by the Secretary to be reasonably necessary for the proposed use.
‘‘(2) LIMITATIONS.—The quantity of acreage covered by the
lease shall not exceed the limitations established under section
7.’’.
(c) APPLICATION OF NEW LEASE TERMS.—The schedule of fees
established under the amendment made by subsection (a)(4) shall
apply with respect to payments under a lease converted under
this subsection that are due and owing, and have been paid, on
or after July 16, 2003. This subsection shall not require the refund
of royalties paid to a State under section 20 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment
of this Act.
SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

(a) ROYALTY.—Section 5 of the Geothermal Steam Act of 1970
(30 U.S.C. 1004) is further amended—
(1) in subsection (a) by striking paragraph (1) and inserting
the following:
‘‘(1) a royalty on electricity produced using geothermal
resources, other than direct use of geothermal resources, that
shall be—
‘‘(A) not less than 1 percent and not more than 2.5
percent of the gross proceeds from the sale of electricity
produced from such resources during the first 10 years
of production under the lease; and

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‘‘(B) not less than 2 and not more than 5 percent
of the gross proceeds from the sale of electricity produced
from such resources during each year after such 10-year
period;’’; and
(2) by adding at the end the following:
‘‘(c) FINAL REGULATION ESTABLISHING ROYALTY RATES.—In
issuing any final regulation establishing royalty rates under this
section, the Secretary shall seek—
‘‘(1) to provide lessees a simplified administrative system;
‘‘(2) to encourage new development; and
‘‘(3) to achieve the same level of royalty revenues over
a 10-year period as the regulation in effect on the date of
enactment of this subsection.
‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ELECTRICITY.—The
Secretary may provide to a lessee a credit against royalties owed
under this Act, in an amount equal to the value of electricity
provided under contract to a State or county government that
is entitled to a portion of such royalties under section 20 of this
Act, section 35 of the Mineral Leasing Act (30 U.S.C. 191), except
as otherwise provided by this section, or section 6 of the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 355), if—
‘‘(1) the Secretary has approved in advance the contract
between the lessee and the State or county government for
such in-kind payments;
‘‘(2) the contract establishes a specific methodology to determine the value of such credits; and
‘‘(3) the maximum credit will be equal to the royalty value
owed to the State or county that is a party to the contract
and the electricity received will serve as the royalty payment
from the Federal Government to that entity.’’.
(b) DISPOSAL OF MONEYS FROM SALES, BONUSES, ROYALTIES,
AND RENTS.—Section 20 of the Geothermal Steam Act of 1970
(30 U.S.C. 1019) is amended to read as follows:
‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS,
AND ROYALTIES.

‘‘(a) IN GENERAL.—Except with respect to lands in the State
of Alaska, all monies received by the United States from sales,
bonuses, rentals, and royalties under this Act shall be paid into
the Treasury of the United States. Of amounts deposited under
this subsection, subject to the provisions of subsection (b) of section
35 of the Mineral Leasing Act (30 U.S.C. 191(b)) and section 5(a)(2)
of this Act—
‘‘(1) 50 percent shall be paid to the State within the boundaries of which the leased lands or geothermal resources are
or were located; and
‘‘(2) 25 percent shall be paid to the county within the
boundaries of which the leased lands or geothermal resources
are or were located.
‘‘(b) USE OF PAYMENTS.—Amounts paid to a State or county
under subsection (a) shall be used consistent with the terms of
section 35 of the Mineral Leasing Act (30 U.S.C. 191).’’.
(c) NEAR-TERM PRODUCTION INCENTIVE FOR EXISTING LEASES.—
(1) IN GENERAL.—Notwithstanding section 5(a) of the Geothermal Steam Act of 1970, the royalty required to be paid
shall be 50 percent of the amount of the royalty otherwise
required, on any lease issued before the date of enactment

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note.

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Deadlines.

Deadline.

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of this Act that does not convert to new royalty terms under
subsection (e)—
(A) with respect to commercial production of energy
from a facility that begins such production in the 6-year
period beginning on the date of enactment of this Act;
or
(B) on qualified expansion geothermal energy.
(2) 4-YEAR APPLICATION.—Paragraph (1) applies only to new
commercial production of energy from a facility in the first
4 years of such production.
(d) DEFINITION OF QUALIFIED EXPANSION GEOTHERMAL
ENERGY.—In this section, the term ‘‘qualified expansion geothermal
energy’’ means geothermal energy produced from a generation
facility for which—
(1) the production is increased by more than 10 percent
as a result of expansion of the facility carried out in the 6year period beginning on the date of enactment of this Act;
and
(2) such production increase is greater than 10 percent
of the average production by the facility during the 5-year
period preceding the expansion of the facility (as such average
is adjusted to reflect any trend in changes in production during
that period).
(e) ROYALTY UNDER EXISTING LEASES.—
(1) IN GENERAL.—Any lessee under a lease issued under
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
before the date of enactment of this Act may, within the time
period specified in paragraph (2), submit to the Secretary of
the Interior a request to modify the terms of the lease relating
to payment of royalties to provide—
(A) in the case of a lease that meets the requirements
of subsection (b) of section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) (as amended by section 223),
that royalties be based on the schedule of fees established
under that section; and
(B) in the case of any other lease, that royalties be
computed on a percentage of the gross proceeds from the
sale of electricity, at a royalty rate that is expected to
yield total royalty payments equivalent to payments that
would have been received for comparable production under
the royalty rate in effect for the lease before the date
of enactment of this subsection.
(2) TIMING.—A request for a modification under paragraph
(1) shall be submitted to the Secretary of the Interior by the
date that is not later than—
(A) in the case of a lease for direct use, 18 months
after the effective date of the schedule of fees established
by the Secretary of the Interior under section 5 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1004); or
(B) in the case of any other lease, 18 months after
the effective date of the final regulation issued under subsection (a).
(3) APPLICATION OF MODIFICATION.—If the lessee requests
modification of a lease under paragraph (1)—
(A) the Secretary of the Interior shall, within 180 days
after the receipt of the request for modification, modify
the lease to comply with—

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(i) in the case of a lease for direct use, the schedule
of fees established by the Secretary under section 5
of the Geothermal Steam Act of 1970 (30 U.S.C. 1004);
or
(ii) in the case of any other lease, the royalty
for the lease established under paragraph (1)(B); and
(B) the modification shall apply to any use of geothermal resources to which subsection (a) applies that
occurs after the date of the modification.
(4) CONSULTATION.—The Secretary of the Interior shall
consult with the State and local governments affected by any
proposed changes in lease royalty terms under this subsection.
SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING
ON FEDERAL LANDS.

42 USC 15871.

(a) IN GENERAL.—Not later than 180 days after the date of
enactment of this section, the Secretary of the Interior and the
Secretary of Agriculture shall enter into and submit to Congress
a memorandum of understanding in accordance with this section,
the Geothermal Steam Act of 1970 (as amended by this Act), and
other applicable laws, regarding coordination of leasing and permitting for geothermal development of public lands and National Forest
System lands under their respective jurisdictions.
(b) LEASE AND PERMIT APPLICATIONS.—The memorandum of
understanding shall—
(1) establish an administrative procedure for processing
geothermal lease applications, including lines of authority, steps
in application processing, and time limits for application procession;
(2) establish a 5-year program for geothermal leasing of
lands in the National Forest System, and a process for updating
that program every 5 years; and
(3) establish a program for reducing the backlog of geothermal lease application pending on January 1, 2005, by 90
percent within the 5-year period beginning on the date of
enactment of this Act, including, as necessary, by issuing leases,
rejecting lease applications for failure to comply with the provisions of the regulations under which they were filed, or determining that an original applicant (or the applicant’s assigns,
heirs, or estate) is no longer interested in pursuing the lease
application.
(c) DATA RETRIEVAL SYSTEM.—The memorandum of understanding shall establish a joint data retrieval system that is capable
of tracking lease and permit applications and providing to the
applicant information as to their status within the Departments
of the Interior and Agriculture, including an estimate of the time
required for administrative action.

Deadline.
Memorandum.

SEC. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

Deadline.
42 USC 15872.

Not later than 3 years after the date of enactment of this
Act and thereafter as the availability of data and developments
in technology warrants, the Secretary of the Interior, acting through
the Director of the United States Geological Survey and in cooperation with the States, shall—
(1) update the Assessment of Geothermal Resources made
during 1978; and
(2) submit to Congress the updated assessment.

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SEC. 227. COOPERATIVE OR UNIT PLANS.

Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C.
1017) is amended to read as follows:
‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

‘‘(a) ADOPTION OF UNITS BY LESSEES.—
‘‘(1) IN GENERAL.—For the purpose of more properly conserving the natural resources of any geothermal reservoir, field,
or like area, or any part thereof (whether or not any part
of the geothermal reservoir, field, or like area, is subject to
any cooperative plan of development or operation (referred to
in this section as a ‘unit agreement’)), lessees thereof and
their representatives may unite with each other, or jointly
or separately with others, in collectively adopting and operating
under a unit agreement for the reservoir, field, or like area,
or any part thereof, including direct use resources, if determined
and certified by the Secretary to be necessary or advisable
in the public interest.
‘‘(2) MAJORITY INTEREST OF SINGLE LEASES.—A majority
interest of owners of any single lease shall have the authority
to commit the lease to a unit agreement.
‘‘(3) INITIATIVE OF SECRETARY.—The Secretary may also
initiate the formation of a unit agreement, or require an
existing Federal lease to commit to a unit agreement, if in
the public interest.
‘‘(4) MODIFICATION OF LEASE REQUIREMENTS BY SECRETARY.—
‘‘(A) IN GENERAL.—The Secretary may, in the discretion
of the Secretary and with the consent of the holders of
leases involved, establish, alter, change, or revoke rates
of operations (including drilling, operations, production,
and other requirements) of the leases and make conditions
with respect to the leases, with the consent of the lessees,
in connection with the creation and operation of any such
unit agreement as the Secretary may consider necessary
or advisable to secure the protection of the public interest.
‘‘(B) UNLIKE TERMS OR RATES.—Leases with unlike
lease terms or royalty rates shall not be required to be
modified to be in the same unit.
‘‘(b) REQUIREMENT OF PLANS UNDER NEW LEASES.—The Secretary may—
‘‘(1) provide that geothermal leases issued under this Act
shall contain a provision requiring the lessee to operate under
a unit agreement; and
‘‘(2) prescribe the unit agreement under which the lessee
shall operate, which shall adequately protect the rights of all
parties in interest, including the United States.
‘‘(c) MODIFICATION OF RATE OF PROSPECTING, DEVELOPMENT,
AND PRODUCTION.—The Secretary may require that any unit agreement authorized by this section that applies to land owned by
the United States contain a provision under which authority is
vested in the Secretary, or any person, committee, or State or
Federal officer or agency as may be designated in the unit agreement to alter or modify, from time to time, the rate of prospecting
and development and the quantity and rate of production under
the unit agreement.

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‘‘(d) EXCLUSION FROM DETERMINATION OF HOLDING OR CONTROL.—Any land that is subject to a unit agreement approved
or prescribed by the Secretary under this section shall not be
considered in determining holdings or control under section 7.
‘‘(e) POOLING OF CERTAIN LAND.—If separate tracts of land
cannot be independently developed and operated to use geothermal
resources pursuant to any section of this Act—
‘‘(1) the land, or a portion of the land, may be pooled
with other land, whether or not owned by the United States,
for purposes of development and operation under a
communitization agreement providing for an apportionment of
production or royalties among the separate tracts of land comprising the production unit, if the pooling is determined by
the Secretary to be in the public interest; and
‘‘(2)
operation
or
production
pursuant
to
the
communitization agreement shall be treated as operation or
production with respect to each tract of land that is subject
to the communitization agreement.
‘‘(f) UNIT AGREEMENT REVIEW.—
‘‘(1) IN GENERAL.—Not later than 5 years after the date
of approval of any unit agreement and at least every 5 years
thereafter, the Secretary shall—
‘‘(A) review each unit agreement; and
‘‘(B) after notice and opportunity for comment, eliminate from inclusion in the unit agreement any land that
the Secretary determines is not reasonably necessary for
unit operations under the unit agreement.
‘‘(2) BASIS FOR ELIMINATION.—The elimination shall—
‘‘(A) be based on scientific evidence; and
‘‘(B) occur only if the elimination is determined by
the Secretary to be for the purpose of conserving and
properly managing the geothermal resource.
‘‘(3) EXTENSION.—Any land eliminated under this subsection shall be eligible for an extension under section 6(g)
if the land meets the requirements for the extension.
‘‘(g) DRILLING OR DEVELOPMENT CONTRACTS.—
‘‘(1) IN GENERAL.—The Secretary may, on such conditions
as the Secretary may prescribe, approve drilling or development
contracts made by one or more lessees of geothermal leases,
with one or more persons, associations, or corporations if, in
the discretion of the Secretary, the conservation of natural
resources or the public convenience or necessity may require
or the interests of the United States may be best served by
the approval.
‘‘(2) HOLDINGS OR CONTROL.—Each lease operated under
an approved drilling or development contract, and interest
under the contract, shall be excepted in determining holdings
or control under section 7.
‘‘(h) COORDINATION WITH STATE GOVERNMENTS.—The Secretary
shall coordinate unitization and pooling activities with appropriate
State agencies.’’.

Deadlines.

SEC. 228. ROYALTY ON BYPRODUCTS.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by section 223(a)) is further amended in subsection (a) by striking paragraph (2) and inserting the following:

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‘‘(2) a royalty on any byproduct that is a mineral specified
in the first section of the Mineral Leasing Act (30 U.S.C.
181), and that is derived from production under the lease,
at the rate of the royalty that applies under that Act to production of the mineral under a lease under that Act;’’.

SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS, RENTALS, AND ROYALTIES.
30 USC 1007.

Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1006) is amended in the second sentence by striking ‘‘period, and
in no event’’ and all that follows through the end of the sentence
and inserting ‘‘period’’.
SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by sections 223 and 224) is further amended—
(1) in subsection (a)(2) by inserting ‘‘and’’ after the semicolon at the end;
(2) in subsection (a)(3) by striking ‘‘; and’’ and inserting
a period;
(3) by striking paragraph (4) of subsection (a); and
(4) by adding at the end the following:
‘‘(e) CREDITING OF RENTAL TOWARD ROYALTY.—Any annual
rental under this section that is paid with respect to a lease before
the first day of the year for which the annual rental is owed
shall be credited to the amount of royalty that is required to
be paid under the lease for that year.’’.
SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C.
1005) is amended—
(1) by striking so much as precedes subsection (c), and
striking subsections (e), (g), (h), (i), and (j);
(2) by redesignating subsections (c), (d), and (f) in order
as subsections (g), (h), and (i); and
(3) by inserting before subsection (g), as so redesignated,
the following:
Regulations.

‘‘SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

‘‘(a) IN GENERAL.—
‘‘(1) PRIMARY TERM.—A geothermal lease shall be for a
primary term of 10 years.
‘‘(2) INITIAL EXTENSION.—The Secretary shall extend the
primary term of a geothermal lease for 5 years if, for each
year after the 10th year of the lease—
‘‘(A) the Secretary determined under subsection (b)
that the lessee satisfied the work commitment requirements that applied to the lease for that year; or
‘‘(B) the lessee paid in annual payments accordance
with subsection (c).
‘‘(3) ADDITIONAL EXTENSION.—The Secretary shall extend
the primary term of a geothermal lease (after an initial extension under paragraph (2)) for an additional 5 years if, for
each year of the initial extension under paragraph (2), the
Secretary determined under subsection (b) that the lessee satisfied the minimum work requirements that applied to the lease
for that year.

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‘‘(b) REQUIREMENT TO SATISFY ANNUAL MINIMUM WORK
REQUIREMENT.—
‘‘(1) IN GENERAL.—The lessee for a geothermal lease shall,
for each year after the 10th year of the lease, satisfy minimum
work requirements prescribed by the Secretary that apply to
the lease for that year.
‘‘(2) PRESCRIPTION OF MINIMUM WORK REQUIREMENTS.—The
Secretary shall issue regulations prescribing minimum work
requirements for geothermal leases, that—
‘‘(A) establish a geothermal potential; and
‘‘(B) if a geothermal potential has been established,
confirm the existence of producible geothermal resources.
‘‘(c) PAYMENTS IN LIEU OF MINIMUM WORK REQUIREMENTS.—
In lieu of the minimum work requirements set forth in subsection
(b)(2), the Secretary shall by regulation establish minimum annual
payments which may be made by the lessee for a limited number
of years that the Secretary determines will not impair achieving
diligent development of the geothermal resource, but in no event
shall the number of years exceed the duration of the extension
period provided in subsection (a).
‘‘(d) TRANSITION RULES FOR LEASES ISSUED PRIOR TO ENACTMENT OF ENERGY POLICY ACT OF 2005.—The Secretary shall by
regulation establish transition rules for leases issued before the
date of the enactment of this subsection, including terms under
which a lease that is near the end of its term on the date of
enactment of this subsection may be extended for up to 2 years—
‘‘(1) to allow achievement of production under the lease;
or
‘‘(2) to allow the lease to be included in a producing unit.
‘‘(e) GEOTHERMAL LEASE OVERLYING MINING CLAIM.—
‘‘(1) EXEMPTION.—The lessee for a geothermal lease of an
area overlying an area subject to a mining claim for which
a plan of operations has been approved by the relevant Federal
land management agency is exempt from annual work requirements established under this Act, if development of the geothermal resource subject to the lease would interfere with the
mining operations under such claim.
‘‘(2) TERMINATION OF EXEMPTION.—An exemption under this
paragraph expires upon the termination of the mining operations.
‘‘(f) TERMINATION OF APPLICATION OF REQUIREMENTS.—Minimum work requirements prescribed under this section shall not
apply to a geothermal lease after the date on which the geothermal
resource is utilized under the lease in commercial quantities.’’.
SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF
PRODUCTION.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by sections 223, 224, and 230) is further
amended by adding at the end the following:
‘‘(f) ADVANCED ROYALTIES REQUIRED FOR CESSATION OF
PRODUCTION.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), if,
at any time after commercial production under a lease is
achieved, production ceases for any reason, the lease shall
remain in full force and effect for a period of not more than

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an aggregate number of 10 years beginning on the date production ceases, if, during the period in which production is ceased,
the lessee pays royalties in advance at the monthly average
rate at which the royalty was paid during the period of production.
‘‘(2) REDUCTION.—The amount of any production royalty
paid for any year shall be reduced (but not below 0) by the
amount of any advanced royalties paid under the lease to
the extent that the advance royalties have not been used to
reduce production royalties for a prior year.
‘‘(3) EXCEPTIONS.—Paragraph (1) shall not apply if the cessation in production is required or otherwise caused by—
‘‘(A) the Secretary;
‘‘(B) the Secretary of the Air Force;
‘‘(C) the Secretary of the Army;
‘‘(D) the Secretary of the Navy;
‘‘(E) a State or a political subdivision of a State; or
‘‘(F) a force majeure.’’.

SEC. 233. ANNUAL RENTAL.

(a) ANNUAL RENTAL RATE.—Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is
further amended in subsection (a) by striking paragraph (3) and
inserting the following:
‘‘(3) payment in advance of an annual rental of not less
than—
‘‘(A) for each of the 1st through 10th years of the
lease—
‘‘(i) in the case of a lease awarded in a noncompetitive lease sale, $1 per acre or fraction thereof; or
‘‘(ii) in the case of a lease awarded in a competitive
lease sale, $2 per acre or fraction thereof for the 1st
year and $3 per acre or fraction thereof for each of
the 2nd through 10th years; and
‘‘(B) for each year after the 10th year of the lease,
$5 per acre or fraction thereof;’’.
(b) TERMINATION OF LEASE FOR FAILURE TO PAY RENTAL.—
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004)
(as amended by sections 223, 224, 230, and 232) is further amended
by adding at the end the following:
‘‘(g) TERMINATION OF LEASE FOR FAILURE TO PAY RENTAL.—
‘‘(1) IN GENERAL.—The Secretary shall terminate any lease
with respect to which rental is not paid in accordance with
this Act and the terms of the lease under which the rental
is required, on the expiration of the 45-day period beginning
on the date of the failure to pay the rental.
‘‘(2) NOTIFICATION.—The Secretary shall promptly notify
a lessee that has not paid rental required under the lease
that the lease will be terminated at the end of the period
referred to in paragraph (1).
‘‘(3) REINSTATEMENT.—A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of
the period referred to in paragraph (1), the amount of rental
due plus a late fee equal to 10 percent of the amount.’’.

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119 STAT. 671

SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR
5 FISCAL YEARS.

42 USC 15873.

(a) DEPOSIT OF GEOTHERMAL RESOURCES LEASES.—Notwithstanding any other provision of law, amounts received by the United
States in the first 5 fiscal years beginning after the date of enactment of this Act as rentals, royalties, and other payments required
under leases under the Geothermal Steam Act of 1970, excluding
funds required to be paid to State and county governments, shall
be deposited into a separate account in the Treasury.
(b) USE OF DEPOSITS.—Amounts deposited under subsection
(a) shall be available to the Secretary of the Interior for expenditure,
without further appropriation and without fiscal year limitation,
to implement the Geothermal Steam Act of 1970 and this Act.
(c) TRANSFER OF FUNDS.—For the purposes of coordination and
processing of geothermal leases and geothermal use authorizations
on Federal land the Secretary of the Interior may authorize the
expenditure or transfer of such funds as are necessary to the
Forest Service.
SEC. 235. ACREAGE LIMITATIONS.

Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C.
1006) is amended—
(1) by striking ‘‘SEC. 7.’’, and by inserting immediately
before and above the first paragraph the following:
‘‘SEC. 7. ACREAGE LIMITATIONS.’’;

(2) in the first paragraph—
(A) by striking ‘‘two thousand five hundred and sixty
acres’’ and inserting ‘‘5,120 acres’’; and
(B) by striking ‘‘twenty thousand four hundred and
eighty acres’’ and inserting ‘‘51,200 acres’’; and
(3) by striking the second paragraph.
SEC. 236. TECHNICAL AMENDMENTS.

The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
is further amended as follows:
(1) By striking ‘‘geothermal steam and associated geothermal resources’’ each place it appears and inserting ‘‘geothermal resources’’.
(2) Section 2 (30 U.S.C. 1001) is amended by adding at
the end the following:
‘‘(g) ‘direct use’ means utilization of geothermal resources
for commercial, residential, agricultural, public facilities, or
other energy needs other than the commercial production of
electricity; and’’.
(3) Section 21 (30 U.S.C. 1020) is amended by striking
‘‘(a) Within one hundred’’ and all that follows through ‘‘(b)
Geothermal’’ and inserting ‘‘Geothermal’’.
(4) The first section (30 U.S.C. 1001 note) is amended
by striking ‘‘That this’’ and inserting the following:

30 USC 1001,
1002, 1005, 1020,
1022, 1024–1026.

‘‘SEC. 1. SHORT TITLE.

‘‘This’’.
(5) Section 2 (30 U.S.C. 1001) is amended by striking
‘‘SEC. 2. As’’ and inserting the following:
‘‘SEC. 2. DEFINITIONS.

‘‘As’’.

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(6) Section 3 (30 U.S.C. 1002) is amended by striking
‘‘SEC. 3. Subject’’ and inserting the following:

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

‘‘Subject’’.
(7) Section 5 (30 U.S.C. 1004) is further amended by
striking ‘‘SEC. 5.’’, and by inserting immediately before and
above subsection (a) the following:
‘‘SEC. 5. RENTS AND ROYALTIES.’’.

(8) Section 8 (30 U.S.C. 1007) is amended by striking
‘‘SEC. 8. (a) The’’ and inserting the following:
‘‘SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

‘‘(a) The’’.
(9) Section 9 (30 U.S.C. 1008) is amended by striking
‘‘SEC. 9. If’’ and inserting the following:
‘‘SEC. 9. BYPRODUCTS.

‘‘If’’.
(10) Section 10 (30 U.S.C. 1009) is amended by striking
‘‘SEC. 10. The’’ and inserting the following:
‘‘SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

‘‘The’’.
(11) Section 11 (30 U.S.C. 1010) is amended by striking
‘‘SEC. 11. The’’ and inserting the following:
‘‘SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

‘‘The’’.
(12) Section 12 (30 U.S.C. 1011) is amended by striking
‘‘SEC. 12. Leases’’ and inserting the following:
‘‘SEC. 12. TERMINATION OF LEASES.

‘‘Leases’’.
(13) Section 13 (30 U.S.C. 1012) is amended by striking
‘‘SEC. 13. The’’ and inserting the following:
‘‘SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.

‘‘The’’.
(14) Section 14 (30 U.S.C. 1013) is amended by striking
‘‘SEC. 14. Subject’’ and inserting the following:
‘‘SEC. 14. SURFACE LAND USE.

‘‘Subject’’.
(15) Section 15 (30 U.S.C. 1014) is amended by striking
‘‘SEC. 15. (a) Geothermal’’ and inserting the following:
‘‘SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

‘‘(a) Geothermal’’.
(16) Section 16 (30 U.S.C. 1015) is amended by striking
‘‘SEC. 16. Leases’’ and inserting the following:
‘‘SEC. 16. REQUIREMENT FOR LESSEES.

‘‘Leases’’.
(17) Section 17 (30 U.S.C. 1016) is amended by striking
‘‘SEC. 17. Administration’’ and inserting the following:

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119 STAT. 673

‘‘SEC. 17. ADMINISTRATION.

‘‘Administration’’.
(18) Section 19 (30 U.S.C. 1018) is amended by striking
‘‘SEC. 19. Upon’’ and inserting the following:
‘‘SEC. 19. DATA FROM FEDERAL AGENCIES.

‘‘Upon’’.
(19) Section 21 (30 U.S.C. 1020) is further amended by
striking ‘‘SEC. 21.’’, and by inserting immediately before and
above the remainder of that section the following:
‘‘SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL RIGHTS.’’.

(20) Section 22 (30 U.S.C. 1021) is amended by striking
‘‘SEC. 22. Nothing’’ and inserting the following:
‘‘SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

‘‘Nothing’’.
(21) Section 23 (30 U.S.C. 1022) is amended by striking
‘‘SEC. 23. (a) All’’ and inserting the following:
‘‘SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

‘‘(a) All’’.
(22) Section 24 (30 U.S.C. 1023) is amended by striking
‘‘SEC. 24. The’’ and inserting the following:
‘‘SEC. 24. RULES AND REGULATIONS.

‘‘The’’.
(23) Section 25 (30 U.S.C. 1024) is amended by striking
‘‘SEC. 25. As’’ and inserting the following:
‘‘SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN
OTHER LAWS.

‘‘As’’.
(24) Section 26 is amended by striking ‘‘SEC. 26. The’’ and
inserting the following:

30 USC 530.

‘‘SEC. 26. AMENDMENT.

‘‘The’’.
(25) Section 27 (30 U.S.C. 1025) is amended by striking
‘‘SEC. 27. The’’ and inserting the following:
‘‘SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

‘‘The’’.
(26) Section 28 (30 U.S.C. 1026) is amended by striking
‘‘SEC. 28. (a)(1) The’’ and inserting the following:
‘‘SEC. 28. SIGNIFICANT THERMAL FEATURES.

‘‘(a)(1) The’’.
(27) Section 29 (30 U.S.C. 1027) is amended by striking
‘‘SEC. 29. The’’ and inserting the following:
‘‘SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

‘‘The’’.
SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

(a) PARTICIPATION AUTHORIZED.—The Secretary, acting through
the Idaho National Laboratory, may participate in a consortium
described in subsection (b) to address science and science policy

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119 STAT. 674

Establishment.

PUBLIC LAW 109–58—AUG. 8, 2005

issues surrounding the expanded discovery and use of geothermal
energy, including from geothermal resources on public lands.
(b) MEMBERS.—The consortium referred to in subsection (a)
shall—
(1) be known as the ‘‘Intermountain West Geothermal
Consortium’’;
(2) be a regional consortium of institutions and government
agencies that focuses on building collaborative efforts among
the universities in the State of Idaho, other regional universities, State agencies, and the Idaho National Laboratory;
(3) include Boise State University, the University of Idaho
(including the Idaho Water Resources Research Institute), the
Oregon Institute of Technology, the Desert Research Institute
with the University and Community College System of Nevada,
and the Energy and Geoscience Institute at the University
of Utah;
(4) be hosted and managed by Boise State University;
and
(5) have a director appointed by Boise State University,
and associate directors appointed by each participating institution.
(c) FINANCIAL ASSISTANCE.—The Secretary, acting through the
Idaho National Laboratory and subject to the availability of appropriations, will provide financial assistance to Boise State University
for expenditure under contracts with members of the consortium
to carry out the activities of the consortium.

Subtitle C—Hydroelectric
SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS.

Deadline.
Regulations.
Procedures.

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(a) FEDERAL RESERVATIONS.—Section 4(e) of the Federal Power
Act (16 U.S.C. 797(e)) is amended by inserting after ‘‘adequate
protection and utilization of such reservation.’’ at the end of the
first proviso the following: ‘‘The license applicant and any party
to the proceeding shall be entitled to a determination on the record,
after opportunity for an agency trial-type hearing of no more than
90 days, on any disputed issues of material fact with respect to
such conditions. All disputed issues of material fact raised by any
party shall be determined in a single trial-type hearing to be
conducted by the relevant resource agency in accordance with the
regulations promulgated under this subsection and within the time
frame established by the Commission for each license proceeding.
Within 90 days of the date of enactment of the Energy Policy
Act of 2005, the Secretaries of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such
expedited trial-type hearing, including the opportunity to undertake
discovery and cross-examine witnesses, in consultation with the
Federal Energy Regulatory Commission.’’.
(b) FISHWAYS.—Section 18 of the Federal Power Act (16 U.S.C.
811) is amended by inserting after ‘‘and such fishways as may
be prescribed by the Secretary of Commerce.’’ the following: ‘‘The
license applicant and any party to the proceeding shall be entitled
to a determination on the record, after opportunity for an agency
trial-type hearing of no more than 90 days, on any disputed issues
of material fact with respect to such fishways. All disputed issues
of material fact raised by any party shall be determined in a

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single trial-type hearing to be conducted by the relevant resource
agency in accordance with the regulations promulgated under this
subsection and within the time frame established by the Commission for each license proceeding. Within 90 days of the date of
enactment of the Energy Policy Act of 2005, the Secretaries of
the Interior, Commerce, and Agriculture shall establish jointly,
by rule, the procedures for such expedited trial-type hearing,
including the opportunity to undertake discovery and cross-examine
witnesses, in consultation with the Federal Energy Regulatory
Commission.’’.
(c) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.—Part I of
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by
adding the following new section at the end thereof:
‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

16 USC 823d.

‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any person
applies for a license for any project works within any reservation
of the United States, and the Secretary of the department under
whose supervision such reservation falls (referred to in this subsection as the ‘Secretary’) deems a condition to such license to
be necessary under the first proviso of section 4(e), the license
applicant or any other party to the license proceeding may propose
an alternative condition.
‘‘(2) Notwithstanding the first proviso of section 4(e), the Secretary shall accept the proposed alternative condition referred to
in paragraph (1), and the Commission shall include in the license
such alternative condition, if the Secretary determines, based on
substantial evidence provided by the license applicant, any other
party to the proceeding, or otherwise available to the Secretary,
that such alternative condition—
‘‘(A) provides for the adequate protection and utilization
of the reservation; and
‘‘(B) will either, as compared to the condition initially by
the Secretary—
‘‘(i) cost significantly less to implement; or
‘‘(ii) result in improved operation of the project works
for electricity production.
‘‘(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party
to a licensing proceeding, or otherwise available to the Secretary,
including any evidence provided by the Commission, on the
implementation costs or operational impacts for electricity production of a proposed alternative.
‘‘(4) The Secretary concerned shall submit into the public record
of the Commission proceeding with any condition under section
4(e) or alternative condition it accepts under this section, a written
statement explaining the basis for such condition, and reason for
not accepting any alternative condition under this section. The
written statement must demonstrate that the Secretary gave equal
consideration to the effects of the condition adopted and alternatives
not accepted on energy supply, distribution, cost, and use; flood
control; navigation; water supply; and air quality (in addition to
the preservation of other aspects of environmental quality); based
on such information as may be available to the Secretary, including
information voluntarily provided in a timely manner by the
applicant and others. The Secretary shall also submit, together
with the aforementioned written statement, all studies, data, and

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Deadline.
Regulations.
Procedures.

Public
information.
Records.

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Deadline.

Records.

Public
information.
Records.

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other factual information available to the Secretary and relevant
to the Secretary’s decision.
‘‘(5) If the Commission finds that the Secretary’s final condition
would be inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the
Commission’s Dispute Resolution Service. The Dispute Resolution
Service shall consult with the Secretary and the Commission and
issue a non-binding advisory within 90 days. The Secretary may
accept the Dispute Resolution Service advisory unless the Secretary
finds that the recommendation will not adequately protect the reservation. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever the Secretary
of the Interior or the Secretary of Commerce prescribes a fishway
under section 18, the license applicant or any other party to the
license proceeding may propose an alternative to such prescription
to construct, maintain, or operate a fishway.
‘‘(2) Notwithstanding section 18, the Secretary of the Interior
or the Secretary of Commerce, as appropriate, shall accept and
prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the license applicant, any other party to the proceeding,
or otherwise available to the Secretary, that such alternative—
‘‘(A) will be no less protective than the fishway initially
prescribed by the Secretary; and
‘‘(B) will either, as compared to the fishway initially prescribed by the Secretary—
‘‘(i) cost significantly less to implement; or
‘‘(ii) result in improved operation of the project works
for electricity production.
‘‘(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party
to a licensing proceeding, or otherwise available to the Secretary,
including any evidence provided by the Commission, on the
implementation costs or operational impacts for electricity production of a proposed alternative.
‘‘(4) The Secretary concerned shall submit into the public record
of the Commission proceeding with any prescription under section
18 or alternative prescription it accepts under this section, a written
statement explaining the basis for such prescription, and reason
for not accepting any alternative prescription under this section.
The written statement must demonstrate that the Secretary gave
equal consideration to the effects of the prescription adopted and
alternatives not accepted on energy supply, distribution, cost, and
use; flood control; navigation; water supply; and air quality (in
addition to the preservation of other aspects of environmental
quality); based on such information as may be available to the
Secretary, including information voluntarily provided in a timely
manner by the applicant and others. The Secretary shall also
submit, together with the aforementioned written statement, all
studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision.
‘‘(5) If the Commission finds that the Secretary’s final prescription would be inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the

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Commission’s Dispute Resolution Service. The Dispute Resolution
Service shall consult with the Secretary and the Commission and
issue a non-binding advisory within 90 days. The Secretary may
accept the Dispute Resolution Service advisory unless the Secretary
finds that the recommendation will not adequately protect the fish
resources. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.’’.

Deadline.

SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.

42 USC 15881.

(a) INCENTIVE PAYMENTS.—For electric energy generated and
sold by a qualified hydroelectric facility during the incentive period,
the Secretary shall make, subject to the availability of appropriations, incentive payments to the owner or operator of such facility.
The amount of such payment made to any such owner or operator
shall be as determined under subsection (e) of this section. Payments under this section may only be made upon receipt by the
Secretary of an incentive payment application which establishes
that the applicant is eligible to receive such payment and which
satisfies such other requirements as the Secretary deems necessary.
Such application shall be in such form, and shall be submitted
at such time, as the Secretary shall establish.
(b) DEFINITIONS.—For purposes of this section:
(1) QUALIFIED HYDROELECTRIC FACILITY.—The term ‘‘qualified hydroelectric facility’’ means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added
to an existing dam or conduit.
(2) EXISTING DAM OR CONDUIT.—The term ‘‘existing dam
or conduit’’ means any dam or conduit the construction of
which was completed before the date of the enactment of this
section and which does not require any construction or enlargement of impoundment or diversion structures (other than repair
or reconstruction) in connection with the installation of a turbine or other generating device.
(3) CONDUIT.—The term ‘‘conduit’’ has the same meaning
as when used in section 30(a)(2) of the Federal Power Act
(16 U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard
to the hydroelectric kilowatt capacity of the facility concerned, without regard to whether the facility uses a dam owned by a governmental or nongovernmental entity, and without regard to whether
the facility begins operation on or after the date of the enactment
of this section.
(c) ELIGIBILITY WINDOW.—Payments may be made under this
section only for electric energy generated from a qualified hydroelectric facility which begins operation during the period of 10
fiscal years beginning with the first full fiscal year occurring after
the date of enactment of this subtitle.
(d) INCENTIVE PERIOD.—A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal years
(referred to in this section as the ‘‘incentive period’’). Such period
shall begin with the fiscal year in which electric energy generated
from the facility is first eligible for such payments.
(e) AMOUNT OF PAYMENT.—
(1) IN GENERAL.—Payments made by the Secretary under
this section to the owner or operator of a qualified hydroelectric

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facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the incentive period. For any such facility, the amount of such payment
shall be 1.8 cents per kilowatt hour (adjusted as provided
in paragraph (2)), subject to the availability of appropriations
under subsection (g), except that no facility may receive more
than $750,000 in 1 calendar year.
(2) ADJUSTMENTS.—The amount of the payment made to
any person under this section as provided in paragraph (1)
shall be adjusted for inflation for each fiscal year beginning
after calendar year 2005 in the same manner as provided
in the provisions of section 29(d)(2)(B) of the Internal Revenue
Code of 1986, except that in applying such provisions the calendar year 2005 shall be substituted for calendar year 1979.
(f) SUNSET.—No payment may be made under this section to
any qualified hydroelectric facility after the expiration of the period
of 20 fiscal years beginning with the first full fiscal year occurring
after the date of enactment of this subtitle, and no payment may
be made under this section to any such facility after a payment
has been made with respect to such facility for a period of 10
fiscal years.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary to carry out the purposes
of this section $10,000,000 for each of the fiscal years 2006 through
2015.
42 USC 15882.

SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

(a) INCENTIVE PAYMENTS.—The Secretary shall make incentive
payments to the owners or operators of hydroelectric facilities at
existing dams to be used to make capital improvements in the
facilities that are directly related to improving the efficiency of
such facilities by at least 3 percent.
(b) LIMITATIONS.—Incentive payments under this section shall
not exceed 10 percent of the costs of the capital improvement
concerned and not more than 1 payment may be made with respect
to improvements at a single facility. No payment in excess of
$750,000 may be made with respect to improvements at a single
facility.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section not more than
$10,000,000 for each of the fiscal years 2006 through 2015.
SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC
PROJECTS.

Section 32 of the Federal Power Act (16 U.S.C. 823c) is
amended—
(1) in subsection (a)(3)(C), by inserting ‘‘except as provided
in subsection (j),’’ before ‘‘conditions’’; and
(2) by adding at the end the following:
‘‘(j) FISH AND WILDLIFE.—If the State of Alaska determines
that a recommendation under subsection (a)(3)(C) is inconsistent
with paragraphs (1) and (2) of subsection (a), the State of Alaska
may decline to adopt all or part of the recommendations in accordance with the procedures established under section 10(j)(2).’’.

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Montana.

SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT.

Applicability.
Effective dates.

(a) EXTENSION OF TIME.—Notwithstanding the time period
specified in section 5 of the Federal Power Act (16 U.S.C. 798)

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that would otherwise apply to the Federal Energy Regulatory
Commission (referred to in this section as the ‘‘Commission’’) project
numbered 12107, the Commission shall—
(1) if the preliminary permit is in effect on the date of
enactment of this Act, extend the preliminary permit for a
period of 3 years beginning on the date on which the preliminary permit expires; or
(2) if the preliminary permit expired before the date of
enactment of this Act, on request of the permittee, reinstate
the preliminary permit for an additional 3-year period beginning on the date of enactment of this Act.
(b) LIMITATION ON CERTAIN FEES.—Notwithstanding section
10(e)(1) of the Federal Power Act (16 U.S.C. 803(e)(1)) or any
other provision of Federal law providing for the payment to the
United States of charges for the use of Federal land for the purposes
of operating and maintaining a hydroelectric development licensed
by the Commission, any political subdivision of the State of Montana
that holds a Commission license for the Commission project numbered 12107 in Granite and Deer Lodge Counties, Montana, shall
be required to pay to the United States for the use of that land
for each year during which the political subdivision continues to
hold the license for the project, the lesser of—
(1) $25,000; or
(2) such annual charge as the Commission or any other
department or agency of the Federal Government may assess.
SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.

Section 408(a)(6) of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking ‘‘April 20,
1977’’ and inserting ‘‘July 22, 2005’’.

Subtitle D—Insular Energy
SEC. 251. INSULAR AREAS ENERGY SECURITY.

Section 604 of the Act entitled ‘‘An Act to authorize appropriations for certain insular areas of the United States, and for other
purposes’’, approved December 24, 1980 (48 U.S.C. 1492), is
amended—
(1) in subsection (a)(4) by striking the period and inserting
a semicolon;
(2) by adding at the end of subsection (a) the following
new paragraphs:
‘‘(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by
the hurricanes and typhoons which frequently occur in insular
areas and such damage often costs millions of dollars to repair;
and
‘‘(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment prepared pursuant to subsection (c) reveals the need to reassess
the state of energy production, consumption, infrastructure,
reliance on imported energy, opportunities for energy conservation and increased energy efficiency, and indigenous sources
in regard to the insular areas.’’;
(3) by amending subsection (e) to read as follows:

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‘‘(e)(1) The Secretary of the Interior, in consultation with the
Secretary of Energy and the head of government of each insular
area, shall update the plans required under subsection (c) by—
‘‘(A) updating the contents required by subsection (c);
‘‘(B) drafting long-term energy plans for such insular areas
with the objective of reducing, to the extent feasible, their
reliance on energy imports by the year 2012, increasing energy
conservation and energy efficiency, and maximizing, to the
extent feasible, use of indigenous energy sources; and
‘‘(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and distribution lines in each insular area be protected from damage caused
by hurricanes and typhoons.
‘‘(2) In carrying out this subsection, the Secretary of Energy
shall identify and evaluate the strategies or projects with the
greatest potential for reducing the dependence on imported fossil
fuels as used for the generation of electricity, including strategies
and projects for—
‘‘(A) improved supply-side efficiency of centralized electrical
generation, transmission, and distribution systems;
‘‘(B) improved demand-side management through—
‘‘(i) the application of established standards for energy
efficiency for appliances;
‘‘(ii) the conduct of energy audits for business and
industrial customers; and
‘‘(iii) the use of energy savings performance contracts;
‘‘(C) increased use of renewable energy, including—
‘‘(i) solar thermal energy for electric generation;
‘‘(ii) solar thermal energy for water heating in large
buildings, such as hotels, hospitals, government buildings,
and residences;
‘‘(iii) photovoltaic energy;
‘‘(iv) wind energy;
‘‘(v) hydroelectric energy;
‘‘(vi) wave energy;
‘‘(vii) energy from ocean thermal resources, including
ocean thermal-cooling for community air conditioning;
‘‘(viii) water vapor condensation for the production of
potable water;
‘‘(ix) fossil fuel and renewable hybrid electrical generation systems; and
‘‘(x) other strategies or projects that the Secretary may
identify as having significant potential; and
‘‘(D) fuel substitution and minimization with indigenous
biofuels, such as coconut oil.
‘‘(3) In carrying out this subsection, for each insular area with
a significant need for distributed generation, the Secretary of
Energy shall identify and evaluate the most promising strategies
and projects described in subparagraphs (C) and (D) of paragraph
(2) for meeting that need.
‘‘(4) In assessing the potential of any strategy or project under
paragraphs (2) and (3), the Secretary of Energy shall consider—
‘‘(A) the estimated cost of the power or energy to be produced, including—
‘‘(i) any additional costs associated with the distribution of the generation; and

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‘‘(ii) the long-term availability of the generation source;
‘‘(B) the capacity of the local electrical utility to manage,
operate, and maintain any project that may be undertaken;
and
‘‘(C) other factors the Secretary of Energy considers to
be appropriate.
‘‘(5) Not later than 1 year after the date of enactment of
this subsection, the Secretary of the Interior shall submit to the
Committee on Energy and Natural Resources of the Senate, the
Committee on Resources of the House of Representatives, and the
Committee on Energy and Commerce of the House of Representatives, the updated plans for each insular area required by this
subsection.’’; and
(4) by amending subsection (g)(4) to read as follows:
‘‘(4) POWER LINE GRANTS FOR INSULAR AREAS.—
‘‘(A) IN GENERAL.—The Secretary of the Interior is
authorized to make grants to governments of insular areas
of the United States to carry out eligible projects to protect
electric power transmission and distribution lines in such
insular areas from damage caused by hurricanes and
typhoons.
‘‘(B) ELIGIBLE PROJECTS.—The Secretary of the Interior
may award grants under subparagraph (A) only to governments of insular areas of the United States that submit
written project plans to the Secretary for projects that
meet the following criteria:
‘‘(i) The project is designed to protect electric power
transmission and distribution lines located in 1 or more
of the insular areas of the United States from damage
caused by hurricanes and typhoons.
‘‘(ii) The project is likely to substantially reduce
the risk of future damage, hardship, loss, or suffering.
‘‘(iii) The project addresses 1 or more problems
that have been repetitive or that pose a significant
risk to public health and safety.
‘‘(iv) The project is not likely to cost more than
the value of the reduction in direct damage and other
negative impacts that the project is designed to prevent
or mitigate. The cost benefit analysis required by this
criterion shall be computed on a net present value
basis.
‘‘(v) The project design has taken into consideration
long-term changes to the areas and persons it is
designed to protect and has manageable future maintenance and modification requirements.
‘‘(vi) The project plan includes an analysis of a
range of options to address the problem it is designed
to prevent or mitigate and a justification for the selection of the project in light of that analysis.
‘‘(vii) The applicant has demonstrated to the Secretary that the matching funds required by subparagraph (D) are available.
‘‘(C) PRIORITY.—When making grants under this paragraph, the Secretary of the Interior shall give priority
to grants for projects which are likely to—
‘‘(i) have the greatest impact on reducing future
disaster losses; and

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‘‘(ii) best conform with plans that have been
approved by the Federal Government or the government of the insular area where the project is to be
carried out for development or hazard mitigation for
that insular area.
‘‘(D) MATCHING REQUIREMENT.—The Federal share of
the cost for a project for which a grant is provided under
this paragraph shall not exceed 75 percent of the total
cost of that project. The non-Federal share of the cost
may be provided in the form of cash or services.
‘‘(E) TREATMENT OF FUNDS FOR CERTAIN PURPOSES.—
Grants provided under this paragraph shall not be considered as income, a resource, or a duplicative program when
determining eligibility or benefit levels for Federal major
disaster and emergency assistance.
‘‘(F) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this paragraph
$6,000,000 for each fiscal year beginning after the date
of the enactment of this paragraph.’’.

42 USC 15891.

SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE.

(a) PROJECT FEASIBILTY STUDIES.—
(1) IN GENERAL.—On a request described in paragraph
(2), the Secretary shall conduct a feasibility study of a project
to implement a strategy or project identified in the plans submitted to Congress pursuant to section 604 of the Act entitled
‘‘An Act to authorize appropriations for certain insular areas
of the United States, and for other purposes’’, approved
December 24, 1980 (48 U.S.C. 1492), as having the potential
to—
(A) significantly reduce the dependence of an insular
area on imported fossil fuels; or
(B) provide needed distributed generation to an insular
area.
(2) REQUEST.—The Secretary shall conduct a feasibility
study under paragraph (1) on—
(A) the request of an electric utility located in an
insular area that commits to fund at least 10 percent
of the cost of the study; and
(B) if the electric utility is located in the Federated
States of Micronesia, the Republic of the Marshall Islands,
or the Republic of Palau, written support for that request
by the President or the Ambassador of the affected freely
associated state.
(3) CONSULTATION.—The Secretary shall consult with
regional utility organizations in—
(A) conducting feasibility studies under paragraph (1);
and
(B) determining the feasibility of potential projects.
(4) FEASIBILITY.—For the purpose of a feasibility study
under paragraph (1), a project shall be determined to be feasible
if the project would significantly reduce the dependence of
an insular area on imported fossil fuels, or provide needed
distributed generation to an insular area, at a reasonable cost.
(b) IMPLEMENTATION.—
(1) IN GENERAL.—On a determination by the Secretary
(in consultation with the Secretary of the Interior) that a project

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is feasible under subsection (a) and a commitment by an electric
utility to operate and maintain the project, the Secretary may
provide such technical and financial assistance as the Secretary
determines is appropriate for the implementation of the project.
(2) REGIONAL UTILITY ORGANIZATIONS.—In providing assistance under paragraph (1), the Secretary shall consider providing the assistance through regional utility organizations.
(c) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be appropriated
to the Secretary—
(A) $500,000 for each fiscal year for project feasibility
studies under subsection (a); and
(B) $4,000,000 for each fiscal year for project
implementation under subsection (b).
(2) LIMITATION OF FUNDS RECEIVED BY INSULAR AREAS.—
No insular area may receive, during any 3-year period, more
than 20 percent of the total funds made available during that
3-year period under subparagraphs (A) and (B) of paragraph
(1) unless the Secretary determines that providing funding
in excess of that percentage best advances existing opportunities to meet the objectives of this section.

TITLE III—OIL AND GAS
Subtitle A—Petroleum Reserve and Home
Heating Oil
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC
PETROLEUM RESERVE AND OTHER ENERGY PROGRAMS.

(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT.—Title I of the Energy Policy and Conservation
Act (42 U.S.C. 6212 et seq.) is amended—
(1) by striking section 166 (42 U.S.C. 6246) and inserting
the following:
‘‘AUTHORIZATION OF APPROPRIATIONS
‘‘SEC. 166. There are authorized to be appropriated to the
Secretary such sums as are necessary to carry out this part and
part D, to remain available until expended.’’;
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251).
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CONSERVATION ACT.—Title II of the Energy Policy and Conservation
Act (42 U.S.C. 6271 et seq.) is amended—
(1) by inserting before section 273 (42 U.S.C. 6283) the
following:

‘‘PART C—SUMMER FILL AND FUEL
BUDGETING PROGRAMS’’;
(2) by striking section 273(e) (42 U.S.C. 6283(e)); and
(3) by striking part D (42 U.S.C. 6285).
(c) TECHNICAL AMENDMENTS.—The table of contents for the
Energy Policy and Conservation Act is amended—

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PUBLIC LAW 109–58—AUG. 8, 2005
(1) by inserting after the items relating to part C of title
I the following:

‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE
‘‘Sec. 181. Establishment.
‘‘Sec. 182. Authority.
‘‘Sec. 183. Conditions for release; plan.
‘‘Sec. 184. Northeast Home Heating Oil Reserve Account.
‘‘Sec. 185. Exemptions.’’;

(2) by amending the items relating to part C of title II
to read as follows:
‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’;

and

42 USC 6240
note.

Public
information.
Notice.

42 USC 6240
note.

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08:19 Oct 26, 2006

(3) by striking the items relating to part D of title II.
(d) AMENDMENT TO THE ENERGY POLICY AND CONSERVATION
ACT.—Section 183(b)(1) of the Energy Policy and Conservation Act
(42 U.S.C. 6250b(b)(1)) is amended by striking ‘‘by more’’ and all
that follows through ‘‘mid-October through March’’ and inserting
‘‘by more than 60 percent over its 5-year rolling average for the
months of mid-October through March (considered as a heating
season average)’’.
(e) FILL STRATEGIC PETROLEUM RESERVE TO CAPACITY.—
(1) IN GENERAL.—The Secretary shall, as expeditiously as
practicable, without incurring excessive cost or appreciably
affecting the price of petroleum products to consumers, acquire
petroleum in quantities sufficient to fill the Strategic Petroleum
Reserve to the 1,000,000,000-barrel capacity authorized under
section 154(a) of the Energy Policy and Conservation Act (42
U.S.C. 6234(a)), in accordance with the sections 159 and 160
of that Act (42 U.S.C. 6239, 6240).
(2) PROCEDURES.—
(A) AMENDMENT.—Section 160 of the Energy Policy
and Conservation Act (42 U.S.C. 6240) is amended by
inserting after subsection (b) the following new subsection:
‘‘(c) PROCEDURES.—The Secretary shall develop, with public
notice and opportunity for comment, procedures consistent with
the objectives of this section to acquire petroleum for the Reserve.
Such procedures shall take into account the need to—
‘‘(1) maximize overall domestic supply of crude oil
(including quantities stored in private sector inventories);
‘‘(2) avoid incurring excessive cost or appreciably affecting
the price of petroleum products to consumers;
‘‘(3) minimize the costs to the Department of the Interior
and the Department of Energy in acquiring such petroleum
products (including foregone revenues to the Treasury when
petroleum products for the Reserve are obtained through the
royalty-in-kind program);
‘‘(4) protect national security;
‘‘(5) avoid adversely affecting current and futures prices,
supplies, and inventories of oil; and
‘‘(6) address other factors that the Secretary determines
to be appropriate.’’.
(B) REVIEW OF REQUESTS FOR DEFERRALS OF SCHEDULED DELIVERIES.—The procedures developed under section
160(c) of the Energy Policy and Conservation Act, as added
by subparagraph (A), shall include procedures and criteria

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for the review of requests for the deferrals of scheduled
deliveries.
(C) DEADLINES.—The Secretary shall—
(i) propose the procedures required under the
amendment made by subparagraph (A) not later than
120 days after the date of enactment of this Act;
(ii) promulgate the procedures not later than 180
days after the date of enactment of this Act; and
(iii) comply with the procedures in acquiring petroleum for the Reserve effective beginning on the date
that is 180 days after the date of enactment of this
Act.
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

Section 713 of the Energy Act of 2000 (Public Law 106–469;
42 U.S.C. 6201 note) is amended by striking ‘‘4’’ and inserting
‘‘9’’.
SEC. 303. SITE SELECTION.

Deadline.

Not later than 1 year after the date of enactment of this
Act, the Secretary shall complete a proceeding to select, from sites
that the Secretary has previously studied, sites necessary to enable
acquisition by the Secretary of the full authorized volume of the
Strategic Petroleum Reserve. In such proceeding, the Secretary
shall first consider and give preference to the five sites which
the Secretary previously assessed in the Draft Environmental
Impact Statement, DOE/EIS–0165–D. However, the Secretary in
his discretion may select other sites as proposed by a State where
a site has been previously studied by the Secretary to meet the
full authorized volume of the Strategic Petroleum Reserve.

Subtitle B—Natural Gas
SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.

(a) SCOPE OF NATURAL GAS ACT.—Section 1(b) of the Natural
Gas Act (15 U.S.C. 717(b)) is amended by inserting ‘‘and to the
importation or exportation of natural gas in foreign commerce and
to persons engaged in such importation or exportation,’’ after ‘‘such
transportation or sale,’’.
(b) DEFINITION.—Section 2 of the Natural Gas Act (15 U.S.C.
717a) is amended by adding at the end the following new paragraph:
‘‘(11) ‘LNG terminal’ includes all natural gas facilities
located onshore or in State waters that are used to receive,
unload, load, store, transport, gasify, liquefy, or process natural
gas that is imported to the United States from a foreign country,
exported to a foreign country from the United States, or transported in interstate commerce by waterborne vessel, but does
not include—
‘‘(A) waterborne vessels used to deliver natural gas
to or from any such facility; or
‘‘(B) any pipeline or storage facility subject to the jurisdiction of the Commission under section 7.’’.
(c) AUTHORIZATION FOR SITING, CONSTRUCTION, EXPANSION, OR
OPERATION OF LNG TERMINALS.—(1) The title for section 3 of the
Natural Gas Act (15 U.S.C. 717b) is amended by inserting ‘‘; LNG
TERMINALS’’ after ‘‘EXPORTATION OR IMPORTATION OF NATURAL GAS’’.

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Notice.

Termination
date.

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(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is
amended by adding at the end the following:
‘‘(d) Except as specifically provided in this Act, nothing in
this Act affects the rights of States under—
‘‘(1) the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.);
‘‘(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
‘‘(3) the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.).
‘‘(e)(1) The Commission shall have the exclusive authority to
approve or deny an application for the siting, construction, expansion, or operation of an LNG terminal. Except as specifically provided in this Act, nothing in this Act is intended to affect otherwise
applicable law related to any Federal agency’s authorities or responsibilities related to LNG terminals.
‘‘(2) Upon the filing of any application to site, construct, expand,
or operate an LNG terminal, the Commission shall—
‘‘(A) set the matter for hearing;
‘‘(B) give reasonable notice of the hearing to all interested
persons, including the State commission of the State in which
the LNG terminal is located and, if not the same, the Governorappointed State agency described in section 3A;
‘‘(C) decide the matter in accordance with this subsection;
and
‘‘(D) issue or deny the appropriate order accordingly.
‘‘(3)(A) Except as provided in subparagraph (B), the Commission
may approve an application described in paragraph (2), in whole
or part, with such modifications and upon such terms and conditions
as the Commission find necessary or appropriate.
‘‘(B) Before January 1, 2015, the Commission shall not—
‘‘(i) deny an application solely on the basis that the
applicant proposes to use the LNG terminal exclusively or
partially for gas that the applicant or an affiliate of the
applicant will supply to the facility; or
‘‘(ii) condition an order on—
‘‘(I) a requirement that the LNG terminal offer service
to customers other than the applicant, or any affiliate
of the applicant, securing the order;
‘‘(II) any regulation of the rates, charges, terms, or
conditions of service of the LNG terminal; or
‘‘(III) a requirement to file with the Commission schedules or contracts related to the rates, charges, terms, or
conditions of service of the LNG terminal.
‘‘(C) Subparagraph (B) shall cease to have effect on January
1, 2030.
‘‘(4) An order issued for an LNG terminal that also offers
service to customers on an open access basis shall not result in
subsidization of expansion capacity by existing customers, degradation of service to existing customers, or undue discrimination
against existing customers as to their terms or conditions of service
at the facility, as all of those terms are defined by the Commission.
‘‘(f)(1) In this subsection, the term ‘military installation’—
‘‘(A) means a base, camp, post, range, station, yard, center,
or homeport facility for any ship or other activity under the
jurisdiction of the Department of Defense, including any leased
facility, that is located within a State, the District of Columbia,
or any territory of the United States; and

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‘‘(B) does not include any facility used primarily for civil
works, rivers and harbors projects, or flood control projects,
as determined by the Secretary of Defense.
‘‘(2) The Commission shall enter into a memorandum of understanding with the Secretary of Defense for the purpose of ensuring
that the Commission coordinate and consult with the Secretary
of Defense on the siting, construction, expansion, or operation of
liquefied natural gas facilities that may affect an active military
installation.
‘‘(3) The Commission shall obtain the concurrence of the Secretary of Defense before authorizing the siting, construction, expansion, or operation of liquefied natural gas facilities affecting the
training or activities of an active military installation.’’.
(d) LNG TERMINAL STATE AND LOCAL SAFETY CONCERNS.—
After section 3 of the Natural Gas Act (15 U.S.C. 717b) insert
the following:

Memorandum.

‘‘STATE AND LOCAL SAFETY CONSIDERATIONS
‘‘SEC. 3A. (a) The Commission shall promulgate regulations
on the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) pre-filing process within 60 days after the date of enactment
of this section. An applicant shall comply with pre-filing process
required under the National Environmental Policy Act of 1969
prior to filing an application with the Commission. The regulations
shall require that the pre-filing process commence at least 6 months
prior to the filing of an application for authorization to construct
an LNG terminal and encourage applicants to cooperate with State
and local officials.
‘‘(b) The Governor of a State in which an LNG terminal is
proposed to be located shall designate the appropriate State agency
for the purposes of consulting with the Commission regarding an
application under section 3. The Commission shall consult with
such State agency regarding State and local safety considerations
prior to issuing an order pursuant to section 3. For the purposes
of this section, State and local safety considerations include—
‘‘(1) the kind and use of the facility;
‘‘(2) the existing and projected population and demographic
characteristics of the location;
‘‘(3) the existing and proposed land use near the location;
‘‘(4) the natural and physical aspects of the location;
‘‘(5) the emergency response capabilities near the facility
location; and
‘‘(6) the need to encourage remote siting.
‘‘(c) The State agency may furnish an advisory report on State
and local safety considerations to the Commission with respect
to an application no later than 30 days after the application was
filed with the Commission. Before issuing an order authorizing
an applicant to site, construct, expand, or operate an LNG terminal,
the Commission shall review and respond specifically to the issues
raised by the State agency described in subsection (b) in the
advisory report. This subsection shall apply to any application filed
after the date of enactment of the Energy Policy Act of 2005.
A State agency has 30 days after such date of enactment to file
an advisory report related to any applications pending at the
Commission as of such date of enactment.
‘‘(d) The State commission of the State in which an LNG terminal is located may, after the terminal is operational, conduct

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Regulations.
Deadline.
15 USC 717b–1.

Applicability.
Deadline.
Reports.

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Notification.

PUBLIC LAW 109–58—AUG. 8, 2005

safety inspections in conformance with Federal regulations and
guidelines with respect to the LNG terminal upon written notice
to the Commission. The State commission may notify the Commission of any alleged safety violations. The Commission shall transmit
information regarding such allegations to the appropriate Federal
agency, which shall take appropriate action and notify the State
commission.
‘‘(e)(1) In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and
State and local agencies and be approved by the Commission prior
to any final approval to begin construction. The Plan shall include
a cost-sharing plan.
‘‘(2) A cost-sharing plan developed under paragraph (1) shall
include a description of any direct cost reimbursements that the
applicant agrees to provide to any State and local agencies with
responsibility for security and safety—
‘‘(A) at the LNG terminal; and
‘‘(B) in proximity to vessels that serve the facility.’’.
SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.

Section 4 of the Natural Gas Act (15 U.S.C. 717c) is amended
by adding at the end the following:
‘‘(f)(1) In exercising its authority under this Act or the Natural
Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission
may authorize a natural gas company (or any person that will
be a natural gas company on completion of any proposed construction) to provide storage and storage-related services at marketbased rates for new storage capacity related to a specific facility
placed in service after the date of enactment of the Energy Policy
Act of 2005, notwithstanding the fact that the company is unable
to demonstrate that the company lacks market power, if the
Commission determines that—
‘‘(A) market-based rates are in the public interest and
necessary to encourage the construction of the storage capacity
in the area needing storage services; and
‘‘(B) customers are adequately protected.
‘‘(2) The Commission shall ensure that reasonable terms and
conditions are in place to protect consumers.
‘‘(3) If the Commission authorizes a natural gas company to
charge market-based rates under this subsection, the Commission
shall review periodically whether the market-based rate is just,
reasonable, and not unduly discriminatory or preferential.’’.
SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.

(a) IN GENERAL.—Section 15 of the Natural Gas Act (15 U.S.C.
717n) is amended—
(1) by striking the section heading and inserting ‘‘PROCESS
COORDINATION; HEARINGS; RULES OF PROCEDURE’’;
(2) by redesignating subsections (a) and (b) as subsections
(e) and (f), respectively; and
(3) by striking ‘‘SEC. 15.’’ and inserting the following:
‘‘SEC. 15.(a) In this section, the term ‘Federal authorization’—
‘‘(1) means any authorization required under Federal law
with respect to an application for authorization under section

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3 or a certificate of public convenience and necessity under
section 7; and
‘‘(2) includes any permits, special use authorizations, certifications, opinions, or other approvals as may be required under
Federal law with respect to an application for authorization
under section 3 or a certificate of public convenience and necessity under section 7.
‘‘(b) DESIGNATION AS LEAD AGENCY.—
‘‘(1) IN GENERAL.—The Commission shall act as the lead
agency for the purposes of coordinating all applicable Federal
authorizations and for the purposes of complying with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
‘‘(2) OTHER AGENCIES.—Each Federal and State agency considering an aspect of an application for Federal authorization
shall cooperate with the Commission and comply with the deadlines established by the Commission.
‘‘(c) SCHEDULE.—
‘‘(1) COMMISSION AUTHORITY TO SET SCHEDULE.—The
Commission shall establish a schedule for all Federal authorizations. In establishing the schedule, the Commission shall—
‘‘(A) ensure expeditious completion of all such proceedings; and
‘‘(B) comply with applicable schedules established by
Federal law.
‘‘(2) FAILURE TO MEET SCHEDULE.—If a Federal or State
administrative agency does not complete a proceeding for an
approval that is required for a Federal authorization in accordance with the schedule established by the Commission, the
applicant may pursue remedies under section 19(d).
‘‘(d) CONSOLIDATED RECORD.—The Commission shall, with the
cooperation of Federal and State administrative agencies and officials, maintain a complete consolidated record of all decisions made
or actions taken by the Commission or by a Federal administrative
agency or officer (or State administrative agency or officer acting
under delegated Federal authority) with respect to any Federal
authorization. Such record shall be the record for—
‘‘(1) appeals or reviews under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), provided that the
record may be supplemented as expressly provided pursuant
to section 319 of that Act; or
‘‘(2) judicial review under section 19(d) of decisions made
or actions taken of Federal and State administrative agencies
and officials, provided that, if the Court determines that the
record does not contain sufficient information, the Court may
remand the proceeding to the Commission for further development of the consolidated record.’’.
(b) JUDICIAL REVIEW.—Section 19 of the Natural Gas Act (15
U.S.C. 717r) is amended by adding at the end the following:
‘‘(d) JUDICIAL REVIEW.—
‘‘(1) IN GENERAL.—The United States Court of Appeals
for the circuit in which a facility subject to section 3 or section
7 is proposed to be constructed, expanded, or operated shall
have original and exclusive jurisdiction over any civil action
for the review of an order or action of a Federal agency (other
than the Commission) or State administrative agency acting
pursuant to Federal law to issue, condition, or deny any permit,

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119 STAT. 690

PUBLIC LAW 109–58—AUG. 8, 2005
license, concurrence, or approval (hereinafter collectively
referred to as ‘permit’) required under Federal law, other than
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.).
‘‘(2) AGENCY DELAY.—The United States Court of Appeals
for the District of Columbia shall have original and exclusive
jurisdiction over any civil action for the review of an alleged
failure to act by a Federal agency (other than the Commission)
or State administrative agency acting pursuant to Federal law
to issue, condition, or deny any permit required under Federal
law, other than the Coastal Zone Management Act of 1972
(16 U.S.C. 1451 et seq.), for a facility subject to section 3
or section 7. The failure of an agency to take action on a
permit required under Federal law, other than the Coastal
Zone Management Act of 1972, in accordance with the Commission schedule established pursuant to section 15(c) shall be
considered inconsistent with Federal law for the purposes of
paragraph (3).
‘‘(3) COURT ACTION.—If the Court finds that such order
or action is inconsistent with the Federal law governing such
permit and would prevent the construction, expansion, or operation of the facility subject to section 3 or section 7, the Court
shall remand the proceeding to the agency to take appropriate
action consistent with the order of the Court. If the Court
remands the order or action to the Federal or State agency,
the Court shall set a reasonable schedule and deadline for
the agency to act on remand.
‘‘(4) COMMISSION ACTION.—For any action described in this
subsection, the Commission shall file with the Court the consolidated record of such order or action to which the appeal hereunder relates.
‘‘(5) EXPEDITED REVIEW.—The Court shall set any action
brought under this subsection for expedited consideration.’’.

SEC. 314. PENALTIES.

(a) CRIMINAL PENALTIES.—
(1) NATURAL GAS ACT.—Section 21 of the Natural Gas Act
(15 U.S.C. 717t) is amended—
(A) in subsection (a)—
(i) by striking ‘‘$5,000’’ and inserting ‘‘$1,000,000’’;
and
(ii) by striking ‘‘two years’’ and inserting ‘‘5 years’’;
and
(B) in subsection (b), by striking ‘‘$500’’ and inserting
‘‘$50,000’’.
(2) NATURAL GAS POLICY ACT OF 1978.—Section 504(c) of
the Natural Gas Policy Act of 1978 (15 U.S.C. 3414(c)) is
amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking ‘‘$5,000’’ and
inserting ‘‘$1,000,000’’; and
(ii) in subparagraph (B), by striking ‘‘two years’’
and inserting ‘‘5 years’’; and
(B) in paragraph (2), by striking ‘‘$500 for each violation’’ and inserting ‘‘$50,000 for each day on which the
offense occurs’’.
(b) CIVIL PENALTIES.—

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 691

(1) NATURAL GAS ACT.—The Natural Gas Act (15 U.S.C.
717 et seq.) is amended—
(A) by redesignating sections 22 through 24 as sections
24 through 26, respectively; and
(B) by inserting after section 21 (15 U.S.C. 717t) the
following:

15 USC
717u–717w.

‘‘CIVIL PENALTY AUTHORITY
‘‘SEC. 22. (a) Any person that violates this Act, or any rule,
regulation, restriction, condition, or order made or imposed by the
Commission under authority of this Act, shall be subject to a
civil penalty of not more than $1,000,000 per day per violation
for as long as the violation continues.
‘‘(b) The penalty shall be assessed by the Commission after
notice and opportunity for public hearing.
‘‘(c) In determining the amount of a proposed penalty, the
Commission shall take into consideration the nature and seriousness of the violation and the efforts to remedy the violation.’’.
(2) NATURAL GAS POLICY ACT OF 1978.—Section 504(b)(6)(A)
of the Natural Gas Policy Act of 1978 (15 U.S.C. 3414(b)(6)(A))
is amended—
(A) in clause (i), by striking ‘‘$5,000’’ and inserting
‘‘$1,000,000’’; and
(B) in clause (ii), by striking ‘‘$25,000’’ and inserting
‘‘$1,000,000’’.

15 USC 717t–1.

SEC. 315. MARKET MANIPULATION.

The Natural Gas Act is amended by inserting after section
4 (15 U.S.C. 717c) the following:
‘‘PROHIBITION ON MARKET MANIPULATION
‘‘SEC. 4A. It shall be unlawful for any entity, directly or
indirectly, to use or employ, in connection with the purchase or
sale of natural gas or the purchase or sale of transportation services
subject to the jurisdiction of the Commission, any manipulative
or deceptive device or contrivance (as those terms are used in
section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78j(b))) in contravention of such rules and regulations as the
Commission may prescribe as necessary in the public interest or
for the protection of natural gas ratepayers. Nothing in this section
shall be construed to create a private right of action.’’.

15 USC 717c–1.

SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.

The Natural Gas Act (15 U.S.C. 717 et seq.) is amended by
inserting after section 22 the following:
‘‘NATURAL GAS MARKET TRANSPARENCY RULES
‘‘SEC. 23. (a)(1) The Commission is directed to facilitate price
transparency in markets for the sale or transportation of physical
natural gas in interstate commerce, having due regard for the
public interest, the integrity of those markets, fair competition,
and the protection of consumers.
‘‘(2) The Commission may prescribe such rules as the Commission determines necessary and appropriate to carry out the purposes
of this section. The rules shall provide for the dissemination, on
a timely basis, of information about the availability and prices

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119 STAT. 692

Deadline.
Memorandum.

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of natural gas sold at wholesale and in interstate commerce to
the Commission, State commissions, buyers and sellers of wholesale
natural gas, and the public.
‘‘(3) The Commission may—
‘‘(A) obtain the information described in paragraph (2) from
any market participant; and
‘‘(B) rely on entities other than the Commission to receive
and make public the information, subject to the disclosure
rules in subsection (b).
‘‘(4) In carrying out this section, the Commission shall consider
the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely
on such publishers and services to the maximum extent possible.
The Commission may establish an electronic information system
if it determines that existing price publications are not adequately
providing price discovery or market transparency.
‘‘(b)(1) Rules described in subsection (a)(2), if adopted, shall
exempt from disclosure information the Commission determines
would, if disclosed, be detrimental to the operation of an effective
market or jeopardize system security.
‘‘(2) In determining the information to be made available under
this section and the time to make the information available, the
Commission shall seek to ensure that consumers and competitive
markets are protected from the adverse effects of potential collusion
or other anticompetitive behaviors that can be facilitated by
untimely public disclosure of transaction-specific information.
‘‘(c)(1) Within 180 days of enactment of this section, the
Commission shall conclude a memorandum of understanding with
the Commodity Futures Trading Commission relating to information sharing, which shall include, among other things, provisions
ensuring that information requests to markets within the respective
jurisdiction of each agency are properly coordinated to minimize
duplicative information requests, and provisions regarding the
treatment of proprietary trading information.
‘‘(2) Nothing in this section may be construed to limit or affect
the exclusive jurisdiction of the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. 1 et
seq.).
‘‘(d)(1) The Commission shall not condition access to interstate
pipeline transportation on the reporting requirements of this section.
‘‘(2) The Commission shall not require natural gas producers,
processors, or users who have a de minimis market presence to
comply with the reporting requirements of this section.
‘‘(e)(1) Except as provided in paragraph (2), no person shall
be subject to any civil penalty under this section with respect
to any violation occurring more than 3 years before the date on
which the person is provided notice of the proposed penalty under
section 22(b).
‘‘(2) Paragraph (1) shall not apply in any case in which the
Commission finds that a seller that has entered into a contract
for the transportation or sale of natural gas subject to the jurisdiction of the Commission has engaged in fraudulent market manipulation activities materially affecting the contract in violation of section
4A.’’.

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 693

SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary, in cooperation and consultation
with the Secretary of Transportation, the Secretary of Homeland
Security, the Federal Energy Regulatory Commission, and the Governors of the Coastal States, shall convene not less than 3 forums
on liquefied natural gas.
(b) REQUIREMENTS.—The forums shall—
(1) be located in areas where liquefied natural gas facilities
are under consideration;
(2) be designed to foster dialogue among Federal officials,
State and local officials, the general public, independent
experts, and industry representatives; and
(3) at a minimum, provide an opportunity for public education and dialogue on—
(A) the role of liquefied natural gas in meeting current
and future United States energy supply requirements and
demand, in the context of the full range of energy supply
options;
(B) the Federal and State siting and permitting processes;
(C) the potential risks and rewards associated with
importing liquefied natural gas;
(D) the Federal safety and environmental requirements
(including regulations) applicable to liquefied natural gas;
(E) prevention, mitigation, and response strategies for
liquefied natural gas hazards; and
(F) additional issues as appropriate.
(c) PURPOSE.—The purpose of the forums shall be to identify
and develop best practices for addressing the issues and challenges
associated with liquefied natural gas imports, building on existing
cooperative efforts.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

Deadline.

SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN
INDIVIDUALS.

Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended
by adding at the end the following:
‘‘(d) In any proceedings under subsection (a), the court may
prohibit, conditionally or unconditionally, and permanently or for
such period of time as the court determines, any individual who
is engaged or has engaged in practices constituting a violation
of section 4A (including related rules and regulations) from—
‘‘(1) acting as an officer or director of a natural gas company; or
‘‘(2) engaging in the business of—
‘‘(A) the purchasing or selling of natural gas; or
‘‘(B) the purchasing or selling of transmission services
subject to the jurisdiction of the Commission.’’.

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PUBLIC LAW 109–58—AUG. 8, 2005

Subtitle C—Production
SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.

(a) STORAGE ON THE OUTER CONTINENTAL SHELF.—Section
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C.
1334(a)(5)) is amended by inserting ‘‘from any source’’ after ‘‘oil
and gas’’.
(b) NATURAL GAS DEFINED.—Section 3(13) of the Deepwater
Port Act of 1974 (33 U.S.C. 1502(13)) is amended by adding at
the end before the semicolon the following: ‘‘, natural gas liquids,
liquefied petroleum gas, and condensate recovered from natural
gas’’.
SEC. 322. HYDRAULIC FRACTURING.

Paragraph (1) of section 1421(d) of the Safe Drinking Water
Act (42 U.S.C. 300h(d)) is amended to read as follows:
‘‘(1) UNDERGROUND INJECTION.—The term ‘underground
injection’—
‘‘(A) means the subsurface emplacement of fluids by
well injection; and
‘‘(B) excludes—
‘‘(i) the underground injection of natural gas for
purposes of storage; and
‘‘(ii) the underground injection of fluids or propping
agents (other than diesel fuels) pursuant to hydraulic
fracturing operations related to oil, gas, or geothermal
production activities.’’.
SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

Section 502 of the Federal Water Pollution Control Act (33
U.S.C. 1362) is amended by adding at the end the following:
‘‘(24) OIL AND GAS EXPLORATION AND PRODUCTION.—The
term ‘oil and gas exploration, production, processing, or treatment operations or transmission facilities’ means all field activities or operations associated with exploration, production, processing, or treatment operations, or transmission facilities,
including activities necessary to prepare a site for drilling and
for the movement and placement of drilling equipment, whether
or not such field activities or operations may be considered
to be construction activities.’’.

Subtitle D—Naval Petroleum Reserve
10 USC 7420
note.

SEC.

331.

TRANSFER OF ADMINISTRATIVE JURISDICTION AND
ENVIRONMENTAL REMEDIATION, NAVAL PETROLEUM
RESERVE NUMBERED 2, KERN COUNTY, CALIFORNIA.

Effective date.

(a) ADMINISTRATION JURISDICTION TRANSFER TO SECRETARY OF
INTERIOR.—Effective on the date of the enactment of this
Act, administrative jurisdiction and control over all public domain
lands included within Naval Petroleum Reserve Numbered 2 located
in Kern County, California (other than the lands specified in subsection (b)), are transferred from the Secretary to the Secretary
of the Interior for management, subject to subsection (c), in accordance with the laws governing management of the public lands,
and the regulations promulgated under such laws, including the
THE

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119 STAT. 695

Mineral Leasing Act (30 U.S.C. 181 et seq.) and the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.).
(b) EXCLUSION OF CERTAIN RESERVE LANDS.—The transfer of
administrative jurisdiction made by subsection (a) does not include
the following lands:
(1) That portion of Naval Petroleum Reserve Numbered
2 authorized for disposal under section 3403(a) of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105–261; 10 U.S.C. 7420 note).
(2) That portion of the surface estate of Naval Petroleum
Reserve Numbered 2 conveyed to the City of Taft, California,
by section 333.
(c) PURPOSE OF TRANSFER.—
(1) PRODUCTION OF HYDROCARBON RESOURCES.—Notwithstanding any other provision of law, the principal purpose
of the lands subject to transfer under subsection (a) is the
production of hydrocarbon resources, and the Secretary of the
Interior shall manage the lands in a fashion consistent with
this purpose. In managing the lands, the Secretary of the
Interior shall regulate operations to prevent unnecessary degradation and to provide for ultimate economic recovery of the
resources.
(2) DISPOSAL AUTHORITY AND SURFACE USE.—The Secretary
of the Interior may make disposals of lands subject to transfer
under subsection (a), or allow commercial or non-profit surface
use of such lands, not to exceed 10 acres each, so long as
the disposals or surface uses do not materially interfere with
the ultimate economic recovery of the hydrocarbon resources
of such lands. All revenues received from the disposal of lands
under this paragraph or from allowing the surface use of such
lands shall be deposited in the Naval Petroleum Reserve Numbered 2 Lease Revenue Account established by section 332.
(d) CONFORMING AMENDMENT.—Section 3403 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 10 U.S.C. 7420 note) is amended by striking
subsection (b).
SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE
ACCOUNT.

10 USC 7420
note.

(a) ESTABLISHMENT.—There is established in the Treasury a
special deposit account to be known as the ‘‘Naval Petroleum
Reserve Numbered 2 Lease Revenue Account’’ (in this section
referred to as the ‘‘lease revenue account’’). The lease revenue
account is a revolving account, and amounts in the lease revenue
account shall be available to the Secretary of the Interior, without
further appropriation, for the purposes specified in subsection (b).
(b) PURPOSES OF ACCOUNT.—
(1) ENVIRONMENTAL-RELATED COSTS.—The lease revenue
account shall be the sole and exclusive source of funds to
pay for any and all costs and expenses incurred by the United
States for—
(A) environmental investigations (other than any
environmental investigations that were conducted by the
Secretary before the transfer of the Naval Petroleum
Reserve Numbered 2 lands under section 331), remediation,
compliance actions, response, waste management, impediments, fines or penalties, or any other costs or expenses

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Certification.

Applicability.

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of any kind arising from, or relating to, conditions existing
on or below the Naval Petroleum Reserve Numbered 2
lands, or activities occurring or having occurred on such
lands, on or before the date of the transfer of such lands;
and
(B) any future remediation necessitated as a result
of pre-transfer and leasing activities on such lands.
(2) TRANSITION COSTS.—The lease revenue account shall
also be available for use by the Secretary of the Interior to
pay for transition costs incurred by the Department of the
Interior associated with the transfer and leasing of the Naval
Petroleum Reserve Numbered 2 lands.
(c) FUNDING.—The lease revenue account shall consist of the
following:
(1) Notwithstanding any other provision of law, for a period
of three years after the date of the transfer of the Naval
Petroleum Reserve Numbered 2 lands under section 331, the
sum of $500,000 per year of revenue from leases entered into
before that date, including bonuses, rents, royalties, and
interest charges collected pursuant to the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1701 et. seq.),
derived from the Naval Petroleum Reserve Numbered 2 lands,
shall be deposited into the lease revenue account.
(2) Subject to subsection (d), all revenues derived from
leases on Naval Petroleum Reserve Numbered 2 lands issued
on or after the date of the transfer of such lands, including
bonuses, rents, royalties, and interest charges collected pursuant to the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1701 et seq.), shall be deposited into the
lease revenue account.
(d) LIMITATION.—Funds in the lease revenue account shall not
exceed $3,000,000 at any one time. Whenever funds in the lease
revenue account are obligated or expended so that the balance
in the account falls below that amount, lease revenues referred
to in subsection (c)(2) shall be deposited in the account to maintain
a balance of $3,000,000.
(e) TERMINATION OF ACCOUNT.—At such time as the Secretary
of the Interior certifies that remediation of all environmental
contamination of Naval Petroleum Reserve Numbered 2 lands in
existence as of the date of the transfer of such lands under section
331 has been successfully completed, that all costs and expenses
of investigation, remediation, compliance actions, response, waste
management, impediments, fines, or penalties associated with
environmental contamination of such lands in existence as of the
date of the transfer have been paid in full, and that the transition
costs of the Department of the Interior referred to in subsection
(b)(2) have been paid in full, the lease revenue account shall be
terminated and any remaining funds shall be distributed in accordance with subsection (f).
(f) DISTRIBUTION OF REMAINING FUNDS.—Section 35 of the Mineral Leasing Act (30 U.S.C. 191) shall apply to the payment and
distribution of all funds remaining in the lease revenue account
upon its termination under subsection (e).

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119 STAT. 697

SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM
RESERVE NUMBERED 2, TO CITY OF TAFT, CALIFORNIA.

10 USC 7420
note.

(a) CONVEYANCE.—Effective on the date of the enactment of
this Act, there is conveyed to the City of Taft, California (in this
section referred to as the ‘‘City’’), all surface right, title, and interest
of the United States in and to a parcel of real property consisting
of approximately 220 acres located in the NE1⁄4, the NE1⁄4 of the
NW1⁄4, and the N1⁄2 of the SE1⁄4 of the NW1⁄4 of section 18, township
32 south, range 24 east, Mount Diablo meridian, Kern County,
California.
(b) CONSIDERATION.—The conveyance under subsection (a) is
made without the payment of consideration by the City.
(c) TREATMENT OF EXISTING RIGHTS.—The conveyance under
subsection (a) is subject to valid existing rights, including Federal
oil and gas lease SAC–019577.
(d) TREATMENT OF MINERALS.—All coal, oil, gas, and other
minerals within the lands conveyed under subsection (a) are
reserved to the United States, except that the United States and
its lessees, licensees, permittees, or assignees shall have no right
of surface use or occupancy of the lands. Nothing in this subsection
shall be construed to require the United States or its lessees,
licensees, permittees, or assignees to support the surface of the
conveyed lands.
(e) INDEMNIFY AND HOLD HARMLESS.—The City shall indemnify,
defend, and hold harmless the United States for, from, and against,
and the City shall assume all responsibility for, any and all liability
of any kind or nature, including all loss, cost, expense, or damage,
arising from the City’s use or occupancy of, or operations on, the
land conveyed under subsection (a), whether such use or occupancy
of, or operations on, occurred before or occur after the date of
the enactment of this Act.
(f) INSTRUMENT OF CONVEYANCE.—Not later than 1 year after
the date of the enactment of this Act, the Secretary shall execute,
file, and cause to be recorded in the appropriate office a deed
or other appropriate instrument documenting the conveyance made
by this section.

Effective date.

SEC. 334. REVOCATION OF LAND WITHDRAWAL.

Effective date.
10 USC 7420
note.

Effective on the date of the enactment of this Act, the Executive
Order of December 13, 1912, which created Naval Petroleum
Reserve Numbered 2, is revoked in its entirety.

Deadline.
Records.

Subtitle E—Production Incentives
SEC. 341. DEFINITION OF SECRETARY.

42 USC 15901.

In this subtitle, the term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

42 USC 15902.

(a) APPLICABILITY OF SECTION.—Notwithstanding any other
provision of law, this section applies to all royalty in-kind accepted
by the Secretary on or after the date of enactment of this Act
under any Federal oil or gas lease or permit under—
(1) section 36 of the Mineral Leasing Act (30 U.S.C. 192);
(2) section 27 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1353); or

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119 STAT. 698

PUBLIC LAW 109–58—AUG. 8, 2005

(3) any other Federal law governing leasing of Federal
land for oil and gas development.
(b) TERMS AND CONDITIONS.—All royalty accruing to the United
States shall, on the demand of the Secretary, be paid in-kind.
If the Secretary makes such a demand, the following provisions
apply to the payment:
(1) SATISFACTION OF ROYALTY OBLIGATION.—Delivery by,
or on behalf of, the lessee of the royalty amount and quality
due under the lease satisfies royalty obligation of the lessee
for the amount delivered, except that transportation and processing reimbursements paid to, or deductions claimed by, the
lessee shall be subject to review and audit.
(2) MARKETABLE CONDITION.—
(A) DEFINITION OF MARKETABLE CONDITION.—In this
paragraph, the term ‘‘in marketable condition’’ means sufficiently free from impurities and otherwise in a condition
that the royalty production will be accepted by a purchaser
under a sales contract typical of the field or area in which
the royalty production was produced.
(B) REQUIREMENT.—Royalty production shall be placed
in marketable condition by the lessee at no cost to the
United States.
(3) DISPOSITION BY THE SECRETARY.—The Secretary may—
(A) sell or otherwise dispose of any royalty production
taken in-kind (other than oil or gas transferred under
section 27(a)(3) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1353(a)(3)) for not less than the market price;
and
(B) transport or process (or both) any royalty production taken in-kind.
(4) RETENTION BY THE SECRETARY.—The Secretary may,
notwithstanding section 3302 of title 31, United States Code,
retain and use a portion of the revenues from the sale of
oil and gas taken in-kind that otherwise would be deposited
to miscellaneous receipts, without regard to fiscal year limitation, or may use oil or gas received as royalty taken in-kind
(referred to in this paragraph as ‘‘royalty production’’) to pay
the cost of—
(A) transporting the royalty production;
(B) processing the royalty production;
(C) disposing of the royalty production; or
(D) any combination of transporting, processing, and
disposing of the royalty production.
(5) LIMITATION.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary may not use revenues from the sale
of oil and gas taken in-kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(B) EXCEPTION.—Notwithstanding subparagraph (A),
the Secretary may use a portion of the revenues from
royalty in-kind sales, without fiscal year limitation, to pay
salaries and other administrative costs directly related to
the royalty in-kind program.
(c) REIMBURSEMENT OF COST.—If the lessee, pursuant to an
agreement with the United States or as provided in the lease,
processes the royalty gas or delivers the royalty oil or gas at
a point not on or adjacent to the lease area, the Secretary shall—

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 699

(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) allow the lessee to deduct the transportation or processing costs in reporting and paying royalties in-value for other
Federal oil and gas leases.
(d) BENEFIT TO THE UNITED STATES REQUIRED.—The Secretary
may receive oil or gas royalties in-kind only if the Secretary determines that receiving royalties in-kind provides benefits to the
United States that are greater than or equal to the benefits that
are likely to have been received had royalties been taken in-value.
(e) REPORTS.—
(1) IN GENERAL.—Not later than September 30, 2006, the
Secretary shall submit to Congress a report that addresses—
(A) actions taken to develop business processes and
automated systems to fully support the royalty-in-kind
capability to be used in tandem with the royalty-in-value
approach in managing Federal oil and gas revenue; and
(B) future royalty-in-kind businesses operation plans
and objectives.
(2) REPORTS ON OIL OR GAS ROYALTIES TAKEN IN-KIND.—
For each of fiscal years 2006 through 2015 in which the United
States takes oil or gas royalties in-kind from production in
any State or from the outer Continental Shelf, excluding royalties taken in-kind and sold to refineries under subsection (h),
the Secretary shall submit to Congress a report that describes—
(A) the 1 or more methodologies used by the Secretary
to determine compliance with subsection (d), including the
performance standard for comparing amounts received by
the United States derived from royalties in-kind to amounts
likely to have been received had royalties been taken invalue;
(B) an explanation of the evaluation that led the Secretary to take royalties in-kind from a lease or group of
leases, including the expected revenue effect of taking
royalties in-kind;
(C) actual amounts received by the United States
derived from taking royalties in-kind and costs and savings
incurred by the United States associated with taking royalties in-kind, including administrative savings and any new
or increased administrative costs; and
(D) an evaluation of other relevant public benefits or
detriments associated with taking royalties in-kind.
(f) DEDUCTION OF EXPENSES.—
(1) IN GENERAL.—Before making payments under section
35 of the Mineral Leasing Act (30 U.S.C. 191) or section 8(g)
of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g))
of revenues derived from the sale of royalty production taken
in-kind from a lease, the Secretary shall deduct amounts paid
or deducted under subsections (b)(4) and (c) and deposit the
amount of the deductions in the miscellaneous receipts of the
Treasury.
(2) ACCOUNTING FOR DEDUCTIONS.—When the Secretary
allows the lessee to deduct transportation or processing costs
under subsection (c), the Secretary may not reduce any payments to recipients of revenues derived from any other Federal
oil and gas lease as a consequence of that deduction.

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119 STAT. 700

PUBLIC LAW 109–58—AUG. 8, 2005
(g) CONSULTATION WITH STATES.—The Secretary—
(1) shall consult with a State before conducting a royalty
in-kind program under this subtitle within the State;
(2) may delegate management of any portion of the Federal
royalty in-kind program to the State except as otherwise prohibited by Federal law; and
(3) shall consult annually with any State from which Federal oil or gas royalty is being taken in-kind to ensure, to
the maximum extent practicable, that the royalty in-kind program provides revenues to the State greater than or equal
to the revenues likely to have been received had royalties
been taken in-value.
(h) SMALL REFINERIES.—
(1) PREFERENCE.—If the Secretary finds that sufficient supplies of crude oil are not available in the open market to
refineries that do not have their own source of supply for
crude oil, the Secretary may grant preference to those refineries
in the sale of any royalty oil accruing or reserved to the United
States under Federal oil and gas leases issued under any mineral leasing law, for processing or use in those refineries at
private sale at not less than the market price.
(2) PRORATION AMONG REFINERIES IN PRODUCTION AREA.—
In disposing of oil under this subsection, the Secretary may,
at the discretion of the Secretary, prorate the oil among refineries described in paragraph (1) in the area in which the
oil is produced.
(i) DISPOSITION TO FEDERAL AGENCIES.—
(1) ONSHORE ROYALTY.—Any royalty oil or gas taken by
the Secretary in-kind from onshore oil and gas leases may
be sold at not less than the market price to any Federal
agency.
(2) OFFSHORE ROYALTY.—Any royalty oil or gas taken inkind from a Federal oil or gas lease on the outer Continental
Shelf may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) FEDERAL LOW-INCOME ENERGY ASSISTANCE PROGRAMS.—
(1) PREFERENCE.—In disposing of royalty oil or gas taken
in-kind under this section, the Secretary may grant a preference
to any person, including any Federal or State agency, for the
purpose of providing additional resources to any Federal lowincome energy assistance program.
(2) REPORT.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit a report to
Congress—
(A) assessing the effectiveness of granting preferences
specified in paragraph (1); and
(B) providing a specific recommendation on the
continuation of authority to grant preferences.

42 USC 15903.

SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.

(a) DEFINITION OF MARGINAL PROPERTY.—Until such time as
the Secretary issues regulations under subsection (e) that prescribe
a different definition, in this section, the term ‘‘marginal property’’
means an onshore unit, communitization agreement, or lease not
within a unit or communitization agreement, that produces on
average the combined equivalent of less than 15 barrels of oil
per well per day or 90,000,000 British thermal units of gas per

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 701

well per day calculated based on the average over the 3 most
recent production months, including only wells that produce on
more than half of the days during those 3 production months.
(b) CONDITIONS FOR REDUCTION OF ROYALTY RATE.—Until such
time as the Secretary issues regulations under subsection (e) that
prescribe different standards or requirements, the Secretary shall
reduce the royalty rate on—
(1) oil production from marginal properties as prescribed
in subsection (c) if the spot price of West Texas Intermediate
crude oil at Cushing, Oklahoma, is, on average, less than $15
per barrel (adjusted in accordance with the Consumer Price
Index for all-urban consumers, United States city average, as
published by the Bureau of Labor Statistics) for 90 consecutive
trading days; and
(2) gas production from marginal properties as prescribed
in subsection (c) if the spot price of natural gas delivered
at Henry Hub, Louisiana, is, on average, less than $2.00 per
million British thermal units (adjusted in accordance with the
Consumer Price Index for all-urban consumers, United States
city average, as published by the Bureau of Labor Statistics)
for 90 consecutive trading days.
(c) REDUCED ROYALTY RATE.—
(1) IN GENERAL.—When a marginal property meets the
conditions specified in subsection (b), the royalty rate shall
be the lesser of—
(A) 5 percent; or
(B) the applicable rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) PERIOD OF EFFECTIVENESS.—The reduced royalty rate
under this subsection shall be effective beginning on the first
day of the production month following the date on which the
applicable condition specified in subsection (b) is met.
(d) TERMINATION OF REDUCED ROYALTY RATE.—A royalty rate
prescribed in subsection (c)(1) shall terminate—
(1) with respect to oil production from a marginal property,
on the first day of the production month following the date
on which—
(A) the spot price of West Texas Intermediate crude
oil at Cushing, Oklahoma, on average, exceeds $15 per
barrel (adjusted in accordance with the Consumer Price
Index for all-urban consumers, United States city average,
as published by the Bureau of Labor Statistics) for 90
consecutive trading days; or
(B) the property no longer qualifies as a marginal
property; and
(2) with respect to gas production from a marginal property,
on the first day of the production month following the date
on which—
(A) the spot price of natural gas delivered at Henry
Hub, Louisiana, on average, exceeds $2.00 per million
British thermal units (adjusted in accordance with the
Consumer Price Index for all-urban consumers, United
States city average, as published by the Bureau of Labor
Statistics) for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property.

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119 STAT. 702

(e) REGULATIONS PRESCRIBING DIFFERENT RELIEF.—
(1) DISCRETIONARY REGULATIONS.—The Secretary may by
regulation prescribe different parameters, standards, and
requirements for, and a different degree or extent of, royalty
relief for marginal properties in lieu of those prescribed in
subsections (a) through (d).
(2) MANDATORY REGULATIONS.—Unless a determination is
made under paragraph (3), not later than 18 months after
the date of enactment of this Act, the Secretary shall by
regulation—
(A) prescribe standards and requirements for, and the
extent of royalty relief for, marginal properties for oil and
gas leases on the outer Continental Shelf; and
(B) define what constitutes a marginal property on
the outer Continental Shelf for purposes of this section.
(3) REPORT.—To the extent the Secretary determines that
it is not practicable to issue the regulations referred to in
paragraph (2), the Secretary shall provide a report to Congress
explaining such determination by not later than 18 months
after the date of enactment of this Act.
(4) CONSIDERATIONS.—In issuing regulations under this
subsection, the Secretary may consider—
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and the effects
of those provisions on production economics;
(E) other royalty relief programs;
(F) regional differences in average wellhead prices;
(G) national energy security issues; and
(H) other relevant matters, as determined by the Secretary.
(f) SAVINGS PROVISION.—Nothing in this section prevents a
lessee from receiving royalty relief or a royalty reduction pursuant
to any other law (including a regulation) that provides more relief
than the amounts provided by this section.

Deadline.

42 USC 15904.

Deadline.

Effective date.
Notices.
Federal Register,
publication.

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PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP
WELLS IN THE SHALLOW WATERS OF THE GULF OF
MEXICO.

(a) ROYALTY INCENTIVE REGULATIONS FOR ULTRA DEEP GAS
WELLS.—
(1) IN GENERAL.—Not later than 180 days after the date
of enactment of this Act, in addition to any other regulations
that may provide royalty incentives for natural gas produced
from deep wells on oil and gas leases issued pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.),
the Secretary shall issue regulations granting royalty relief
suspension volumes of not less than 35 billion cubic feet with
respect to the production of natural gas from ultra deep wells
on leases issued in shallow waters less than 400 meters deep
located in the Gulf of Mexico wholly west of 87 degrees, 30
minutes west longitude. Regulations issued under this subsection shall be retroactive to the date that the notice of proposed rulemaking is published in the Federal Register.

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 703

(2) SUSPENSION VOLUMES.—The Secretary may grant
suspension volumes of not less than 35 billion cubic feet in
any case in which—
(A) the ultra deep well is a sidetrack; or
(B) the lease has previously produced from wells with
a perforated interval the top of which is at least 15,000
feet true vertical depth below the datum at mean sea
level.
(3) DEFINITIONS.—In this subsection:
(A) ULTRA DEEP WELL.—The term ‘‘ultra deep well’’
means a well drilled with a perforated interval, the top
of which is at least 20,000 true vertical depth below the
datum at mean sea level.
(B) SIDETRACK.—
(i) IN GENERAL.—The term ‘‘sidetrack’’ means a
well resulting from drilling an additional hole to a
new objective bottom-hole location by leaving a previously drilled hole.
(ii) INCLUSION.—The term ‘‘sidetrack’’ includes—
(I) drilling a well from a platform slot
reclaimed from a previously drilled well;
(II) re-entering and deepening a previously
drilled well; and
(III) a bypass from a sidetrack, including
drilling around material blocking a hole or drilling
to straighten a crooked hole.
(b) ROYALTY INCENTIVE REGULATIONS FOR DEEP GAS WELLS.—
Not later than 180 days after the date of enactment of this Act,
in addition to any other regulations that may provide royalty incentives for natural gas produced from deep wells on oil and gas
leases issued pursuant to the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.), the Secretary shall issue regulations
granting royalty relief suspension volumes with respect to production of natural gas from deep wells on leases issued in waters
more than 200 meters but less than 400 meters deep located in
the Gulf of Mexico wholly west of 87 degrees, 30 minutes west
longitude. The suspension volumes for deep wells within 200 to
400 meters of water depth shall be calculated using the same
methodology used to calculate the suspension volumes for deep
wells in the shallower waters of the Gulf of Mexico, and in no
case shall the suspension volumes for deep wells within 200 to
400 meters of water depth be lower than those for deep wells
in shallower waters. Regulations issued under this subsection shall
be retroactive to the date that the notice of proposed rulemaking
is published in the Federal Register.
(c) LIMITATIONS.—The Secretary may place limitations on the
royalty relief granted under this section based on market price.
The royalty relief granted under this section shall not apply to
a lease for which deep water royalty relief is available.

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SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

42 USC 15905.

(a) IN GENERAL.—Subject to subsections (b) and (c), for each
tract located in water depths of greater than 400 meters in the
Western and Central Planning Area of the Gulf of Mexico (including
the portion of the Eastern Planning Area of the Gulf of Mexico
encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude), any oil or gas lease sale under the Outer

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119 STAT. 704

PUBLIC LAW 109–58—AUG. 8, 2005

Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring
during the 5-year period beginning on the date of enactment of
this Act shall use the bidding system authorized under section
8(a)(1)(H) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)(H)).
(b) SUSPENSION OF ROYALTIES.—The suspension of royalties
under subsection (a) shall be established at a volume of not less
than—
(1) 5,000,000 barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters;
(3) 12,000,000 barrels of oil equivalent for each lease in
water depths of 1,600 to 2,000 meters; and
(4) 16,000,000 barrels of oil equivalent for each lease in
water depths greater than 2,000 meters.
(c) LIMITATION.—The Secretary may place limitations on royalty
relief granted under this section based on market price.
SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.

Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by inserting ‘‘and in the Planning Areas offshore Alaska’’ after ‘‘West longitude’’.
SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM
RESERVE IN ALASKA.

42 USC 6506a.

(a) TRANSFER OF AUTHORITY.—
(1) REDESIGNATION.—The Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6501 et seq.) is amended
by redesignating section 107 (42 U.S.C. 6507) as section 108.
(2) TRANSFER.—The matter under the heading ‘‘EXPLORATION OF NATIONAL PETROLEUM RESERVE IN ALASKA’’ under
the heading ‘‘ENERGY AND MINERALS’’ of title I of Public Law
96–514 (42 U.S.C. 6508) is—
(A) transferred to the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6501 et seq.);
(B) redesignated as section 107 of that Act; and
(C) moved so as to appear after section 106 of that
Act (42 U.S.C. 6506).
(b) COMPETITIVE LEASING.—Section 107 of the Naval Petroleum
Reserves Production Act of 1976 (as amended by subsection (a)(2))
is amended—
(1) by striking the heading and all that follows through
‘‘Provided, That (1) activities’’ and inserting the following:
‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

‘‘(a) IN GENERAL.—The Secretary shall conduct an expeditious
program of competitive leasing of oil and gas in the Reserve in
accordance with this Act.
‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Activities’’;
(2) by striking ‘‘Alaska (the Reserve); (2) the’’ and inserting
‘‘Alaska’’.
‘‘(c) LAND USE PLANNING; BLM WILDERNESS STUDY.—The’’;
(3) by striking ‘‘Reserve; (3) the’’ and inserting ‘‘Reserve’’.
‘‘(d) FIRST LEASE SALE.—The;’’;
(4) by striking ‘‘4332); (4) the’’ and inserting ‘‘4321 et seq.)’’.
‘‘(e) WITHDRAWALS.—The’’;

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PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 705

(5) by striking ‘‘herein; (5) bidding’’ and inserting ‘‘under
this section’’.
‘‘(f) BIDDING SYSTEMS.—Bidding’’;
(6) by striking ‘‘629); (6) lease’’ and inserting ‘‘629)’’.
‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’;
(7) by striking ‘‘structures; (7) the’’ and inserting ‘‘structures’’.
‘‘(h) SIZE OF LEASE TRACTS.—The’’;
(8) by striking ‘‘Secretary; (8)’’ and all that follows through
‘‘Drilling, production,’’ and inserting ‘‘Secretary’’.
‘‘(i) TERMS.—
‘‘(1) IN GENERAL.—Each lease shall be issued for an initial
period of not more than 10 years, and shall be extended for
so long thereafter as oil or gas is produced from the lease
in paying quantities, oil or gas is capable of being produced
in paying quantities, or drilling or reworking operations, as
approved by the Secretary, are conducted on the leased land.
‘‘(2) RENEWAL OF LEASES WITH DISCOVERIES.—At the end
of the primary term of a lease the Secretary shall renew for
an additional 10-year term a lease that does not meet the
requirements of paragraph (1) if the lessee submits to the
Secretary an application for renewal not later than 60 days
before the expiration of the primary lease and the lessee certifies, and the Secretary agrees, that hydrocarbon resources
were discovered on one or more wells drilled on the leased
land in such quantities that a prudent operator would hold
the lease for potential future development.
‘‘(3) RENEWAL OF LEASES WITHOUT DISCOVERIES.—At the
end of the primary term of a lease the Secretary shall renew
for an additional 10-year term a lease that does not meet
the requirements of paragraph (1) if the lessee submits to
the Secretary an application for renewal not later than 60
days before the expiration of the primary lease and pays the
Secretary a renewal fee of $100 per acre of leased land, and—
‘‘(A) the lessee provides evidence, and the Secretary
agrees that, the lessee has diligently pursued exploration
that warrants continuation with the intent of continued
exploration or future potential development of the leased
land; or
‘‘(B) all or part of the lease—
‘‘(i) is part of a unit agreement covering a lease
described in subparagraph (A); and
‘‘(ii) has not been previously contracted out of the
unit.
‘‘(4) APPLICABILITY.—This subsection applies to a lease that
is in effect on or after the date of enactment of the Energy
Policy Act of 2005.
‘‘(5) EXPIRATION FOR FAILURE TO PRODUCE.—Notwithstanding any other provision of this Act, if no oil or gas is
produced from a lease within 30 years after the date of the
issuance of the lease the lease shall expire.
‘‘(6) TERMINATION.—No lease issued under this section covering lands capable of producing oil or gas in paying quantities
shall expire because the lessee fails to produce the same due
to circumstances beyond the control of the lessee.
‘‘(j) UNIT AGREEMENTS.—

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119 STAT. 706

PUBLIC LAW 109–58—AUG. 8, 2005
‘‘(1) IN GENERAL.—For the purpose of conservation of the
natural resources of all or part of any oil or gas pool, field,
reservoir, or like area, lessees (including representatives) of
the pool, field, reservoir, or like area may unite with each
other, or jointly or separately with others, in collectively
adopting and operating under a unit agreement for all or part
of the pool, field, reservoir, or like area (whether or not any
other part of the oil or gas pool, field, reservoir, or like area
is already subject to any cooperative or unit plan of development
or operation), if the Secretary determines the action to be
necessary or advisable in the public interest. In determining
the public interest, the Secretary should consider, among other
things, the extent to which the unit agreement will minimize
the impact to surface resources of the leases and will facilitate
consolidation of facilities.
‘‘(2) CONSULTATION.—In making a determination under
paragraph (1), the Secretary shall consult with and provide
opportunities for participation by the State of Alaska or a
Regional Corporation (as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602)) with respect
to the creation or expansion of units that include acreage in
which the State of Alaska or the Regional Corporation has
an interest in the mineral estate.
‘‘(3) PRODUCTION ALLOCATION METHODOLOGY.—(A) The Secretary may use a production allocation methodology for each
participating area within a unit that includes solely Federal
land in the Reserve.
‘‘(B) The Secretary shall use a production allocation methodology for each participating area within a unit that includes
Federal land in the Reserve and non-Federal land based on
the characteristics of each specific oil or gas pool, field, reservoir, or like area to take into account reservoir heterogeneity
and area variation in reservoir producibility across diverse
leasehold interests. The implementation of the foregoing
production allocation methodology shall be controlled by agreement among the affected lessors and lessees.
‘‘(4) BENEFIT OF OPERATIONS.—Drilling, production,’’;
(9) by striking ‘‘When separate’’ and inserting the following:
‘‘(5) POOLING.—If separate’’;
(10) by inserting ‘‘(in consultation with the owners of the
other land)’’ after ‘‘determined by the Secretary of the Interior’’;
(11) by striking ‘‘thereto; (10) to’’ and all that follows
through ‘‘the terms provided therein’’ and inserting ‘‘to the
agreement.
‘‘(k) EXPLORATION INCENTIVES.—
‘‘(1) IN GENERAL.—
‘‘(A) WAIVER, SUSPENSION, OR REDUCTION.—To encourage the greatest ultimate recovery of oil or gas or in the
interest of conservation, the Secretary may waive, suspend,
or reduce the rental fees or minimum royalty, or reduce
the royalty on an entire leasehold (including on any lease
operated pursuant to a unit agreement), whenever (after
consultation with the State of Alaska and the North Slope
Borough of Alaska and the concurrence of any Regional
Corporation for leases that include land that was made
available for acquisition by the Regional Corporation under
the provisions of section 1431(o) of the Alaska National

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Interest Lands Conservation Act (16 U.S.C. 3101 et seq.))
in the judgment of the Secretary it is necessary to do
so to promote development, or whenever in the judgment
of the Secretary the leases cannot be successfully operated
under the terms provided therein.
‘‘(B) APPLICABILITY.—This paragraph applies to a lease
that is in effect on or after the date of enactment of the
Energy Policy Act of 2005.’’;
(12) by striking ‘‘The Secretary is authorized to’’ and
inserting the following:
‘‘(2) SUSPENSION OF OPERATIONS AND PRODUCTION.—The
Secretary may’’;
(13) by striking ‘‘In the event’’ and inserting the following:
‘‘(3) SUSPENSION OF PAYMENTS.—If’’;
(14) by striking ‘‘thereto; and (11) all’’ and inserting ‘‘to
the lease.
‘‘(l) RECEIPTS.—All’’;
(15) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively;
(16) by striking ‘‘Any agency’’ and inserting the following:
‘‘(m) EXPLORATIONS.—Any agency’’;
(17) by striking ‘‘Any action’’ and inserting the following:
‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.—
‘‘(1) JUDICIAL REVIEW.—Any action’’;
(18) by striking ‘‘The detailed’’ and inserting the following:
‘‘(2) INITIAL LEASE SALES.—The detailed’’;
(19) by striking ‘‘section 104(b) of the Naval Petroleum
Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)’’
and inserting ‘‘section 104(a)’’; and
(20) by adding at the end the following:
‘‘(o) REGULATIONS.—As soon as practicable after the date of
enactment of the Energy Policy Act of 2005, the Secretary shall
issue regulations to implement this section.
‘‘(p) WAIVER OF ADMINISTRATION FOR CONVEYED LANDS.—
‘‘(1) IN GENERAL.—Notwithstanding section 14(g) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1613(g))—
‘‘(A) the Secretary of the Interior shall waive administration of any oil and gas lease to the extent that the
lease covers any land in the Reserve in which all of the
subsurface estate is conveyed to the Arctic Slope Regional
Corporation (referred to in this subsection as the ‘Corporation’);
‘‘(B)(i) in a case in which a conveyance of a subsurface
estate described in subparagraph (A) does not include all
of the land covered by the oil and gas lease, the person
that owns the subsurface estate in any particular portion
of the land covered by the lease shall be entitled to all
of the revenues reserved under the lease as to that portion,
including, without limitation, all the royalty payable with
respect to oil or gas produced from or allocated to that
portion;
‘‘(ii) in a case described in clause (i), the Secretary
of the Interior shall—
‘‘(I) segregate the lease into 2 leases, 1 of
which shall cover only the subsurface estate conveyed to the Corporation; and

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‘‘(II) waive administration of the lease that
covers the subsurface estate conveyed to the Corporation; and
‘‘(iii) the segregation of the lease described in
clause (ii)(I) has no effect on the obligations of the
lessee under either of the resulting leases, including
obligations relating to operations, production, or other
circumstances (other than payment of rentals or royalties); and
‘‘(C) nothing in this subsection limits the authority
of the Secretary of the Interior to manage the federallyowned surface estate within the Reserve.’’.
(c) CONFORMING AMENDMENTS.—Section 104 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6504) is
amended—
(1) by striking subsection (a); and
(2) by redesignating subsections (b) through (d) as subsections (a) through (c), respectively.
Alaska.
42 USC 15906.

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SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.

(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary of the Interior shall establish a long-term initiative to be known as the ‘‘North Slope
Science Initiative’’ (referred to in this section as the ‘‘Initiative’’).
(2) PURPOSE.—The purpose of the Initiative shall be to
implement efforts to coordinate collection of scientific data that
will provide a better understanding of the terrestrial, aquatic,
and marine ecosystems of the North Slope of Alaska.
(b) OBJECTIVES.—To ensure that the Initiative is conducted
through a comprehensive science strategy and implementation plan,
the Initiative shall, at a minimum—
(1) identify and prioritize information needs for inventory,
monitoring, and research activities to address the individual
and cumulative effects of past, ongoing, and anticipated
development activities and environmental change on the North
Slope;
(2) develop an understanding of information needs for regulatory and land management agencies, local governments, and
the public;
(3) focus on prioritization of pressing natural resource
management and ecosystem information needs, coordination,
and cooperation among agencies and organizations;
(4) coordinate ongoing and future inventory, monitoring,
and research activities to minimize duplication of effort, share
financial resources and expertise, and assure the collection
of quality information;
(5) identify priority needs not addressed by agency science
programs in effect on the date of enactment of this Act and
develop a funding strategy to meet those needs;
(6) provide a consistent approach to high caliber science,
including inventory, monitoring, and research;
(7) maintain and improve public and agency access to—
(A) accumulated and ongoing research; and
(B) contemporary and traditional local knowledge; and

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(8) ensure through appropriate peer review that the science
conducted by participating agencies and organizations is of
the highest technical quality.
(c) MEMBERSHIP.—
(1) IN GENERAL.—To ensure comprehensive collection of
scientific data, in carrying out the Initiative, the Secretary
shall consult and coordinate with Federal, State, and local
agencies that have responsibilities for land and resource
management across the North Slope.
(2) COOPERATIVE AGREEMENTS.—The Secretary shall enter
into cooperative agreements with the State of Alaska, the North
Slope Borough, the Arctic Slope Regional Corporation, and other
Federal agencies as appropriate to coordinate efforts, share
resources, and fund projects under this section.
(d) SCIENCE TECHNICAL ADVISORY PANEL.—
(1) IN GENERAL.—The Initiative shall include a panel to
provide advice on proposed inventory, monitoring, and research
functions.
(2) MEMBERSHIP.—The panel described in paragraph (1)
shall consist of a representative group of not more than 15
scientists and technical experts from diverse professions and
interests, including the oil and gas industry, subsistence users,
Native Alaskan entities, conservation organizations, wildlife
management organizations, and academia, as determined by
the Secretary.
(e) REPORTS.—Not later than 3 years after the date of enactment of this section and each year thereafter, the Secretary shall
publish a report that describes the studies and findings of the
Initiative.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

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Establishment.

SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL
LAND.

42 USC 15907.

(a) IN GENERAL.—The Secretary, in cooperation with the Secretary of Agriculture, shall establish a program not later than
1 year after the date of enactment of this Act to remediate, reclaim,
and close orphaned, abandoned, or idled oil and gas wells located
on land administered by the land management agencies within
the Department of the Interior and the Department of Agriculture.
(b) ACTIVITIES.—The program under subsection (a) shall—
(1) include a means of ranking orphaned, abandoned, or
idled wells sites for priority in remediation, reclamation, and
closure, based on public health and safety, potential environmental harm, and other land use priorities;
(2) provide for identification and recovery of the costs of
remediation, reclamation, and closure from persons or other
entities currently providing a bond or other financial assurance
required under State or Federal law for an oil or gas well
that is orphaned, abandoned, or idled; and
(3) provide for recovery from the persons or entities identified under paragraph (2), or their sureties or guarantors, of
the costs of remediation, reclamation, and closure of such wells.
(c) COOPERATION AND CONSULTATIONS.—In carrying out the
program under subsection (a), the Secretary shall—

Deadline.

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(1) work cooperatively with the Secretary of Agriculture
and the States within which Federal land is located; and
(2) consult with the Secretary of Energy and the Interstate
Oil and Gas Compact Commission.
(d) PLAN.—Not later than 1 year after the date of enactment
of this Act, the Secretary, in cooperation with the Secretary of
Agriculture, shall submit to Congress a plan for carrying out the
program under subsection (a).
(e) IDLED WELL.—For the purposes of this section, a well is
idled if—
(1) the well has been nonoperational for at least 7 years;
and
(2) there is no anticipated beneficial use for the well.
(f) FEDERAL REIMBURSEMENT FOR ORPHANED WELL RECLAMATION PILOT PROGRAM.—
(1) REIMBURSEMENT FOR REMEDIATING, RECLAIMING, AND
CLOSING WELLS ON LAND SUBJECT TO A NEW LEASE.—The Secretary shall carry out a pilot program under which, in issuing
a new oil and gas lease on federally owned land on which
1 or more orphaned wells are located, the Secretary—
(A) may require, other than as a condition of the lease,
that the lessee remediate, reclaim, and close in accordance
with standards established by the Secretary, all orphaned
wells on the land leased; and
(B) shall develop a program to reimburse a lessee,
through a royalty credit against the Federal share of royalties owed or other means, for the reasonable actual costs
of remediating, reclaiming, and closing the orphaned wells
pursuant to that requirement.
(2) REIMBURSEMENT FOR RECLAIMING ORPHANED WELLS ON
OTHER LAND.—In carrying out this subsection, the Secretary—
(A) may authorize any lessee under an oil and gas
lease on federally owned land to reclaim in accordance
with the Secretary’s standards—
(i) an orphaned well on unleased federally owned
land; or
(ii) an orphaned well located on an existing lease
on federally owned land for the reclamation of which
the lessee is not legally responsible; and
(B) shall develop a program to provide reimbursement
of 100 percent of the reasonable actual costs of remediating,
reclaiming, and closing the orphaned well, through credits
against the Federal share of royalties or other means.
(3) REGULATIONS.—The Secretary may issue such regulations as are appropriate to carry out this subsection.
(g) TECHNICAL ASSISTANCE PROGRAM FOR NON-FEDERAL
LAND.—
(1) IN GENERAL.—The Secretary of Energy shall establish
a program to provide technical and financial assistance to oil
and gas producing States to facilitate State efforts over a 10year period to ensure a practical and economical remedy for
environmental problems caused by orphaned or abandoned oil
and gas exploration or production well sites on State or private
land.
(2) ASSISTANCE.—The Secretary of Energy shall work with
the States, through the Interstate Oil and Gas Compact
Commission, to assist the States in quantifying and mitigating

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environmental risks of onshore orphaned or abandoned oil or
gas wells on State and private land.
(3) ACTIVITIES.—The program under paragraph (1) shall
include—
(A) mechanisms to facilitate identification, if feasible,
of the persons currently providing a bond or other form
of financial assurance required under State or Federal
law for an oil or gas well that is orphaned or abandoned;
(B) criteria for ranking orphaned or abandoned well
sites based on factors such as public health and safety,
potential environmental harm, and other land use priorities;
(C) information and training programs on best practices for remediation of different types of sites; and
(D) funding of State mitigation efforts on a cost-shared
basis.
(h) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be appropriated
to carry out this section $25,000,000 for each of fiscal years
2006 through 2010.
(2) USE.—Of the amounts authorized under paragraph (1),
$5,000,000 are authorized for each fiscal year for activities
under subsection (f).
SEC. 350. COMBINED HYDROCARBON LEASING.

(a) SPECIAL PROVISIONS REGARDING LEASING.—Section 17(b)(2)
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(2) by adding at the end the following:
‘‘(B) For any area that contains any combination of tar sand
and oil or gas (or both), the Secretary may issue under this Act,
separately—
‘‘(i) a lease for exploration for and extraction of tar sand;
and
‘‘(ii) a lease for exploration for and development of oil
and gas.
‘‘(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a lease
issued for oil and gas, except that the minimum acceptable bid
required for a lease issued for tar sand shall be $2 per acre.
‘‘(D) The Secretary may waive, suspend, or alter any requirement under section 26 that a permittee under a permit authorizing
prospecting for tar sand must exercise due diligence, to promote
any resource covered by a combined hydrocarbon lease.’’.
(b) CONFORMING AMENDMENT.—Section 17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the second
sentence by inserting ‘‘, subject to paragraph (2)(B),’’ after ‘‘Secretary’’.
(c) REGULATIONS.—Not later than 45 days after the date of
enactment of this Act, the Secretary shall issue final regulations
to implement this section.
SEC. 351. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

(a) SHORT TITLE.—This section may be cited as the ‘‘National
Geological and Geophysical Data Preservation Program Act of
2005’’.

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Deadline.
30 USC 226 note.

National
Geological and
Geophysical Data
Preservation
Program Act of
2005.
42 USC 15908.

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PUBLIC LAW 109–58—AUG. 8, 2005

(b) PROGRAM.—The Secretary shall carry out a National
Geological and Geophysical Data Preservation Program in accordance with this section—
(1) to archive geologic, geophysical, and engineering data,
maps, well logs, and samples;
(2) to provide a national catalog of such archival material;
and
(3) to provide technical and financial assistance related
to the archival material.
(c) PLAN.—Not later than 1 year after the date of enactment
of this Act, the Secretary shall submit to Congress a plan for
the implementation of the Program.
(d) DATA ARCHIVE SYSTEM.—
(1) ESTABLISHMENT.—The Secretary shall establish, as a
component of the Program, a data archive system to provide
for the storage, preservation, and archiving of subsurface, surface, geological, geophysical, and engineering data and samples.
The Secretary, in consultation with the Advisory Committee,
shall develop guidelines relating to the data archive system,
including the types of data and samples to be preserved.
(2) SYSTEM COMPONENTS.—The system shall be comprised
of State agencies that elect to be part of the system and agencies
within the Department of the Interior that maintain geological
and geophysical data and samples that are designated by the
Secretary in accordance with this subsection. The Program
shall provide for the storage of data and samples through
data repositories operated by such agencies.
(3) LIMITATION OF DESIGNATION.—The Secretary may not
designate a State agency as a component of the data archive
system unless that agency is the agency that acts as the
geological survey in the State.
(4) DATA FROM FEDERAL LAND.—The data archive system
shall provide for the archiving of relevant subsurface data
and samples obtained from Federal land—
(A) in the most appropriate repository designated
under paragraph (2), with preference being given to
archiving data in the State in which the data were collected; and
(B) consistent with all applicable law and requirements
relating to confidentiality and proprietary data.
(e) NATIONAL CATALOG.—
(1) IN GENERAL.—As soon as practicable after the date
of enactment of this Act, the Secretary shall develop and maintain, as a component of the Program, a national catalog that
identifies—
(A) data and samples available in the data archive
system established under subsection (d);
(B) the repository for particular material in the system;
and
(C) the means of accessing the material.
(2) AVAILABILITY.—The Secretary shall make the national
catalog accessible to the public on the site of the Survey on
the Internet, consistent with all applicable requirements related
to confidentiality and proprietary data.
(f) ADVISORY COMMITTEE.—
(1) IN GENERAL.—The Advisory Committee shall advise
the Secretary on planning and implementation of the Program.

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(2) NEW DUTIES.—In addition to its duties under the
National Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.),
the Advisory Committee shall perform the following duties:
(A) Advise the Secretary on developing guidelines and
procedures for providing assistance for facilities under subsection (g)(1).
(B) Review and critique the draft implementation plan
prepared by the Secretary under subsection (c).
(C) Identify useful studies of data archived under the
Program that will advance understanding of the Nation’s
energy and mineral resources, geologic hazards, and
engineering geology.
(D) Review the progress of the Program in archiving
significant data and preventing the loss of such data, and
the scientific progress of the studies funded under the
Program.
(E) Include in the annual report to the Secretary
required under section 5(b)(3) of the National Geologic
Mapping Act of 1992 (43 U.S.C. 31d(b)(3)) an evaluation
of the progress of the Program toward fulfilling the purposes of the Program under subsection (b).
(g) FINANCIAL ASSISTANCE.—
(1) ARCHIVE FACILITIES.—Subject to the availability of
appropriations, the Secretary shall provide financial assistance
to a State agency that is designated under subsection (d)(2)
for providing facilities to archive energy material.
(2) STUDIES.—Subject to the availability of appropriations,
the Secretary shall provide financial assistance to any State
agency designated under subsection (d)(2) for studies and technical assistance activities that enhance understanding,
interpretation, and use of materials archived in the data archive
system established under subsection (d).
(3) FEDERAL SHARE.—The Federal share of the cost of an
activity carried out with assistance under this subsection shall
be not more than 50 percent of the total cost of the activity.
(4) PRIVATE CONTRIBUTIONS.—The Secretary shall apply
to the non-Federal share of the cost of an activity carried
out with assistance under this subsection the value of private
contributions of property and services used for that activity.
(h) REPORT.—The Secretary shall include in each report under
section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C.
31g)—
(1) a description of the status of the Program;
(2) an evaluation of the progress achieved in developing
the Program during the period covered by the report; and
(3) any recommendations for legislative or other action
the Secretary considers necessary and appropriate to fulfill
the purposes of the Program under subsection (b).
(i) MAINTENANCE OF STATE EFFORT.—It is the intent of Congress that the States not use this section as an opportunity to
reduce State resources applied to the activities that are the subject
of the Program.
(j) DEFINITIONS.—In this section:
(1) ADVISORY COMMITTEE.—The term ‘‘Advisory Committee’’
means the advisory committee established under section 5 of
the National Geologic Mapping Act of 1992 (43 U.S.C. 31d).

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(2) PROGRAM.—The term ‘‘Program’’ means the National
Geological and Geophysical Data Preservation Program carried
out under this section.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior, acting through the Director of the United States
Geological Survey.
(4) SURVEY.—The term ‘‘Survey’’ means the United States
Geological Survey.
(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $30,000,000 for each
of fiscal years 2006 through 2010.
SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.

Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1))
is amended by inserting after ‘‘acreage held in special tar sand
areas’’ the following: ‘‘, and acreage under any lease any portion
of which has been committed to a federally approved unit or cooperative plan or communitization agreement or for which royalty
(including compensatory royalty or royalty in-kind) was paid in
the preceding calendar year,’’.
42 USC 15909.

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SEC. 353. GAS HYDRATE PRODUCTION INCENTIVE.

(a) PURPOSE.—The purpose of this section is to promote natural
gas production from the natural gas hydrate resources on the outer
Continental Shelf and Federal lands in Alaska by providing royalty
incentives.
(b) SUSPENSION OF ROYALTIES.—
(1) IN GENERAL.—The Secretary may grant royalty relief
in accordance with this section for natural gas produced from
gas hydrate resources under an eligible lease.
(2) ELIGIBLE LEASES.—A lease shall be an eligible lease
for purposes of this section if—
(A) it is issued under the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.), or is an oil and gas
lease issued for onshore Federal lands in Alaska;
(B) it is issued prior to January 1, 2016; and
(C) production under the lease of natural gas from
gas hydrate resources commences prior to January 1, 2018.
(3) AMOUNT OF RELIEF.—The Secretary shall conduct a
rulemaking and grant royalty relief under this section as a
suspension volume if the Secretary determines that such royalty
relief would encourage production of natural gas from gas
hydrate resources from an eligible lease. The maximum suspension volume shall be 30 billion cubic feet of natural gas per
lease. Such relief shall be in addition to any other royalty
relief under any other provision applicable to the lease that
does not specifically grant a gas hydrate production incentive.
Such royalty suspension volume shall be applied to any eligible
production occurring on or after the date of publication of
the advanced notice of proposed rulemaking.
(4) LIMITATION.—The Secretary may place limitations on
royalty relief granted under this section based on market price.
(c) APPLICATION.—This section shall apply to any eligible lease
issued before, on, or after the date of enactment of this Act.
(d) RULEMAKINGS.—
(1) REQUIREMENT.—The Secretary shall publish the
advanced notice of proposed rulemaking within 180 days after
the date of enactment of this Act and complete the rulemaking

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implementing this section within 365 days after the date of
enactment of this Act.
(2) GAS HYDRATE RESOURCES DEFINED.—Such regulations
shall define the term ‘‘gas hydrate resources’’ to include both
the natural gas content of gas hydrates within the hydrate
stability zone and free natural gas trapped by and beneath
the hydrate stability zone.
(e) REVIEW.—Not later than 365 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary
of Energy, shall carry out a review of, and submit to Congress
a report on, further opportunities to enhance production of natural
gas from gas hydrate resources on the outer Continental Shelf
and on Federal lands in Alaska through the provision of other
production incentives or through technical or financial assistance.
SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH
CARBON DIOXIDE INJECTION.

(a) PRODUCTION INCENTIVE.—
(1) FINDINGS.—Congress finds the following:
(A) Approximately two-thirds of the original oil in place
in the United States remains unproduced.
(B) Enhanced oil and natural gas production from the
sequestering of carbon dioxide and other appropriate gases
has the potential to increase oil and natural gas production.
(C) Capturing and productively using carbon dioxide
would help reduce the carbon intensity of the economy.
(2) PURPOSE.—The purpose of this section is—
(A) to promote the capturing, transportation, and injection of produced carbon dioxide, natural carbon dioxide,
and other appropriate gases or other matter for sequestration into oil and gas fields; and
(B) to promote oil and natural gas production from
the outer Continental Shelf and onshore Federal lands
under lease by providing royalty incentives to use enhanced
recovery techniques using injection of the substances
referred to in subparagraph (A).
(b) SUSPENSION OF ROYALTIES.—
(1) IN GENERAL.—If the Secretary determines that reduction
of the royalty under a Federal oil and gas lease that is an
eligible lease is in the public interest and promotes the purposes
of this section, the Secretary shall undertake a rulemaking
to provide for such reduction for an eligible lease.
(2) RULEMAKINGS.—The Secretary shall publish the
advanced notice of proposed rulemaking within 180 days after
the date of enactment of this Act and complete the rulemaking
implementing this section within 365 days after the date of
enactment of this Act.
(3) ELIGIBLE LEASES.—A lease shall be an eligible lease
for purposes of this section if—
(A) it is a lease for production of oil and gas from
the outer Continental Shelf or Federal onshore lands;
(B) the injection of the substances referred to in subsection (a)(2)(A) will be used as an enhanced recovery technique on such lease; and
(C) the Secretary determines that the lease contains
oil or gas that would not likely be produced without the
royalty reduction provided under this section.

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Deadline.
Reports.

42 USC 15910.

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Notices.
Deadlines.

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(4) AMOUNT OF RELIEF.—The rulemaking shall provide for
a suspension volume, which shall not exceed 5,000,000 barrels
of oil equivalent for each eligible lease. Such suspension volume
shall be applied to any production from an eligible lease occurring on or after the date of publication of any advanced notice
of proposed rulemaking under this subsection.
(5) LIMITATION.—The Secretary may place limitations on
the royalty reduction granted under this section based on
market price.
(6) APPLICATION.—This section shall apply to any eligible
lease issued before, on, or after the date of enactment of this
Act.
(c) DEMONSTRATION PROGRAM.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—The Secretary of Energy shall establish a competitive grant program to provide grants to producers of oil and gas to carry out projects to inject carbon
dioxide for the purpose of enhancing recovery of oil or
natural gas while increasing the sequestration of carbon
dioxide.
(B) PROJECTS.—The demonstration program shall provide for—
(i) not more than 10 projects in the Willistin Basin
in North Dakota and Montana; and
(ii) 1 project in the Cook Inlet Basin in Alaska.
(2) REQUIREMENTS.—
(A) IN GENERAL.—The Secretary of Energy shall issue
requirements relating to applications for grants under paragraph (1).
(B) RULEMAKING.—The issuance of requirements under
subparagraph (A) shall not require a rulemaking.
(C) MINIMUM REQUIREMENTS.—At a minimum, the Secretary shall require under subparagraph (A) that an
application for a grant include—
(i) a description of the project proposed in the
application;
(ii) an estimate of the production increase and
the duration of the production increase from the
project, as compared to conventional recovery techniques, including water flooding;
(iii) an estimate of the carbon dioxide sequestered
by project, over the life of the project;
(iv) a plan to collect and disseminate data relating
to each project to be funded by the grant;
(v) a description of the means by which the project
will be sustainable without Federal assistance after
the completion of the term of the grant;
(vi) a complete description of the costs of the
project, including acquisition, construction, operation,
and maintenance costs over the expected life of the
project;
(vii) a description of which costs of the project
will be supported by Federal assistance under this
section; and
(viii) a description of any secondary or tertiary
recovery efforts in the field and the efficacy of water
flood recovery techniques used.

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(3) PARTNERS.—An applicant for a grant under paragraph
(1) may carry out a project under a pilot program in partnership
with 1 or more other public or private entities.
(4) SELECTION CRITERIA.—In evaluating applications under
this subsection, the Secretary of Energy shall—
(A) consider the previous experience with similar
projects of each applicant; and
(B) give priority consideration to applications that—
(i) are most likely to maximize production of oil
and gas in a cost-effective manner;
(ii) sequester significant quantities of carbon
dioxide from anthropogenic sources;
(iii) demonstrate the greatest commitment on the
part of the applicant to ensure funding for the proposed
project and the greatest likelihood that the project
will be maintained or expanded after Federal assistance under this section is completed; and
(iv) minimize any adverse environmental effects
from the project.
(5) DEMONSTRATION PROGRAM REQUIREMENTS.—
(A) MAXIMUM AMOUNT.—The Secretary of Energy shall
not provide more than $3,000,000 in Federal assistance
under this subsection to any applicant.
(B) COST SHARING.—The Secretary of Energy shall
require cost-sharing under this subsection in accordance
with section 988.
(C) PERIOD OF GRANTS.—
(i) IN GENERAL.—A project funded by a grant under
this subsection shall begin construction not later than
2 years after the date of provision of the grant, but
in any case not later than December 31, 2010.
(ii) TERM.—The Secretary shall not provide grant
funds to any applicant under this subsection for a
period of more than 5 years.
(6) TRANSFER OF INFORMATION AND KNOWLEDGE.—The Secretary of Energy shall establish mechanisms to ensure that
the information and knowledge gained by participants in the
program under this subsection are transferred among other
participants and interested persons, including other applicants
that submitted applications for a grant under this subsection.
(7) SCHEDULE.—
(A) PUBLICATION.—Not later than 180 days after the
date of enactment of this Act, the Secretary of Energy
shall publish in the Federal Register, and elsewhere, as
appropriate, a request for applications to carry out projects
under this subsection.
(B) DATE FOR APPLICATIONS.—An application for a
grant under this subsection shall be submitted not later
than 180 days after the date of publication of the request
under subparagraph (A).
(C) SELECTION.—After the date by which applications
for grants are required to be submitted under subparagraph
(B), the Secretary of Energy, in a timely manner, shall
select, after peer review and based on the criteria under
paragraph (4), those projects to be awarded a grant under
this subsection.

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Procedures.

Deadline.
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(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON
OIL.

(a) ASSESSMENT.—The Secretary of Energy shall assess the
economic implications of the dependence of the State of Hawaii
on oil as the principal source of energy for the State, including—
(1) the short- and long-term prospects for crude oil supply
disruption and price volatility and potential impacts on the
economy of Hawaii;
(2) the economic relationship between oil-fired generation
of electricity from residual fuel and refined petroleum products
consumed for ground, marine, and air transportation;
(3) the technical and economic feasibility of increasing the
contribution of renewable energy resources for generation of
electricity, on an island-by-island basis, including—
(A) siting and facility configuration;
(B) environmental, operational, and safety considerations;
(C) the availability of technology;
(D) the effects on the utility system, including reliability;
(E) infrastructure and transport requirements;
(F) community support; and
(G) other factors affecting the economic impact of such
an increase and any effect on the economic relationship
described in paragraph (2);
(4) the technical and economic feasibility of using liquefied
natural gas to displace residual fuel oil for electric generation,
including neighbor island opportunities, and the effect of the
displacement on the economic relationship described in paragraph (2), including—
(A) the availability of supply;
(B) siting and facility configuration for onshore and
offshore liquefied natural gas receiving terminals;
(C) the factors described in subparagraphs (B) through
(F) of paragraph (3); and
(D) other economic factors;
(5) the technical and economic feasibility of using renewable
energy sources (including hydrogen) for ground, marine, and
air transportation energy applications to displace the use of
refined petroleum products, on an island-by-island basis, and
the economic impact of the displacement on the relationship
described in paragraph (2); and
(6) an island-by-island approach to—
(A) the development of hydrogen from renewable
resources; and
(B) the application of hydrogen to the energy needs
of Hawaii.
(b) CONTRACTING AUTHORITY.—The Secretary of Energy may
carry out the assessment under subsection (a) directly or, in whole
or in part, through 1 or more contracts with qualified public or
private entities.

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(c) REPORT.—Not later than 300 days after the date of enactment of this Act, the Secretary of Energy shall prepare (in consultation with agencies of the State of Hawaii and other stakeholders,
as appropriate), and submit to Congress, a report describing the
findings, conclusions, and recommendations resulting from the
assessment.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 356. DENALI COMMISSION.

42 USC 15911.

(a) DEFINITION OF COMMISSION.—In this section, the term
‘‘Commission’’ means the Denali Commission established by the
Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law
105–277).
(b) ENERGY PROGRAMS.—The Commission shall use amounts
made available under subsection (d) to carry out energy programs,
including—
(1) energy generation and development, including—
(A) fuel cells, hydroelectric, solar, wind, wave, and
tidal energy; and
(B) alternative energy sources;
(2) the construction of energy transmission, including
interties;
(3) the replacement and cleanup of fuel tanks;
(4) the construction of fuel transportation networks and
related facilities;
(5) power cost equalization programs; and
(6) projects using coal as a fuel, including coal gasification
projects.
(c) OPEN MEETINGS.—
(1) IN GENERAL.—Except as provided in paragraph (2), a
meeting of the Commission shall be open to the public if—
(A) the Commission members take action on behalf
of the Commission; or
(B) the deliberations of the Commission determine,
or result in the joint conduct or disposition of, official
Commission business.
(2) EXCEPTIONS.—Paragraph (1) shall not apply to any
portion of a Commission meeting for which the Commission,
in public session, votes to close the meeting for the reasons
described in paragraph (2), (4), (5), or (6) of subsection (c)
of section 552b of title 5, United States Code.
(3) PUBLIC NOTICE.—
(A) IN GENERAL.—At least 1 week before a meeting
of the Commission, the Commission shall make a public
announcement of the meeting that describes—
(i) the time, place, and subject matter of the
meeting;
(ii) whether the meeting is to be open or closed
to the public; and
(iii) the name and telephone number of an appropriate person to respond to requests for information
about the meeting.
(B) ADDITIONAL NOTICE.—The Commission shall make
a public announcement of any change to the information

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made available under subparagraph (A) at the earliest
practicable time.
(4) MINUTES.—The Commission shall keep, and make available to the public, a transcript, electronic recording, or minutes
from each Commission meeting, except for portions of the
meeting closed under paragraph (2).
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Commission not more than $55,000,000
for each of fiscal years 2006 through 2015 to carry out subsection
(b).
42 USC 15912.

Public
information.

SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL
GAS RESOURCES.

(a) IN GENERAL.—The Secretary shall conduct an inventory
and analysis of oil and natural gas resources beneath all of the
waters of the United States Outer Continental Shelf (‘‘OCS’’). The
inventory and analysis shall—
(1) use available data on oil and gas resources in areas
offshore of Mexico and Canada that will provide information
on trends of oil and gas accumulation in areas of the OCS;
(2) use any available technology, except drilling, but
including 3–D seismic technology to obtain accurate resource
estimates;
(3) analyze how resource estimates in OCS areas have
changed over time in regards to gathering geological and geophysical data, initial exploration, or full field development,
including areas such as the deepwater and subsalt areas in
the Gulf of Mexico;
(4) estimate the effect that understated oil and gas resource
inventories have on domestic energy investments; and
(5) identify and explain how legislative, regulatory, and
administrative programs or processes restrict or impede the
development of identified resources and the extent that they
affect domestic supply, such as moratoria, lease terms and
conditions, operational stipulations and requirements, approval
delays by the Federal Government and coastal States, and
local zoning restrictions for onshore processing facilities and
pipeline landings.
(b) REPORTS.—The Secretary shall submit a report to Congress
on the inventory of estimates and the analysis of restrictions or
impediments, together with any recommendations, within 6 months
of the date of enactment of the section. The report shall be publicly
available and updated at least every 5 years.

Subtitle F—Access to Federal Lands
SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING
PRACTICES.

(a) REVIEW OF ONSHORE OIL AND GAS LEASING PRACTICES.—
(1) IN GENERAL.—The Secretary of the Interior, in consultation with the Secretary of Agriculture with respect to National
Forest System lands under the jurisdiction of the Department
of Agriculture, shall perform an internal review of current
Federal onshore oil and gas leasing and permitting practices.
(2) INCLUSIONS.—The review shall include the process for—
(A) accepting or rejecting offers to lease;

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(B) administrative appeals of decisions or orders of
officers or employees of the Bureau of Land Management
with respect to a Federal oil or gas lease;
(C) considering surface use plans of operation,
including the timeframes in which the plans are considered,
and any recommendations for improving and expediting
the process; and
(D) identifying stipulations to address site-specific concerns and conditions, including those stipulations relating
to the environment and resource use conflicts.
(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the Secretary of the Interior and the Secretary
of Agriculture shall transmit a report to Congress that describes—
(1) actions taken under section 3 of Executive Order No.
13212 (42 U.S.C. 13201 note); and
(2) actions taken or any plans to improve the Federal
onshore oil and gas leasing program.
SEC. 362. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

(a) TIMELY ACTION ON LEASES AND PERMITS.—
(1) SECRETARY OF THE INTERIOR.—To ensure timely action
on oil and gas leases and applications for permits to drill
on land otherwise available for leasing, the Secretary of the
Interior (referred to in this section as the ‘‘Secretary’’) shall—
(A) ensure expeditious compliance with section
102(2)(C) of the National Environmental Policy Act of 1969
(42 U.S.C. 4332(2)(C)) and any other applicable environmental and cultural resources laws;
(B) improve consultation and coordination with the
States and the public; and
(C) improve the collection, storage, and retrieval of
information relating to the oil and gas leasing activities.
(2) SECRETARY OF AGRICULTURE.—To ensure timely action
on oil and gas lease applications for permits to drill on land
otherwise available for leasing, the Secretary of Agriculture
shall—
(A) ensure expeditious compliance with all applicable
environmental and cultural resources laws; and
(B) improve the collection, storage, and retrieval of
information relating to the oil and gas leasing activities.
(b) BEST MANAGEMENT PRACTICES.—
(1) IN GENERAL.—Not later than 18 months after the date
of enactment of this Act, the Secretary shall develop and implement best management practices to—
(A) improve the administration of the onshore oil and
gas leasing program under the Mineral Leasing Act (30
U.S.C. 181 et seq.); and
(B) ensure timely action on oil and gas leases and
applications for permits to drill on land otherwise available
for leasing.
(2) CONSIDERATIONS.—In developing the best management
practices under paragraph (1), the Secretary shall consider
any recommendations from the review under section 361.
(3) REGULATIONS.—Not later than 180 days after the
development of the best management practices under paragraph (1), the Secretary shall publish, for public comment,

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PUBLIC LAW 109–58—AUG. 8, 2005

proposed regulations that set forth specific timeframes for processing leases and applications in accordance with the best
management practices, including deadlines for—
(A) approving or disapproving—
(i) resource management plans and related documents;
(ii) lease applications;
(iii) applications for permits to drill; and
(iv) surface use plans; and
(B) related administrative appeals.
(c) IMPROVED ENFORCEMENT.—The Secretary and the Secretary
of Agriculture shall improve inspection and enforcement of oil and
gas activities, including enforcement of terms and conditions in
permits to drill on land under the jurisdiction of the Secretary
and the Secretary of Agriculture, respectively.
(d) AUTHORIZATION OF APPROPRIATIONS.—In addition to
amounts made available to carry out activities relating to oil and
gas leasing on public land administered by the Secretary and
National Forest System land administered by the Secretary of Agriculture, there are authorized to be appropriated for each of fiscal
years 2006 through 2010—
(1) to the Secretary, acting through the Director of the
Bureau of Land Management—
(A) $40,000,000 to carry out subsections (a)(1) and
(b); and
(B) $20,000,000 to carry out subsection (c);
(2) to the Secretary, acting through the Director of the
United States Fish and Wildlife Service, $5,000,000 to carry
out subsection (a)(1); and
(3) to the Secretary of Agriculture, acting through the
Chief of the Forest Service, $5,000,000 to carry out subsections
(a)(2) and (c).

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42 USC 15922.

SEC. 363. CONSULTATION REGARDING OIL AND GAS LEASING ON
PUBLIC LAND.

Deadline.
Memorandum.

(a) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall enter into a memorandum of understanding regarding oil and gas leasing on—
(1) public land under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System land under the jurisdiction
of the Secretary of Agriculture.
(b) CONTENTS.—The memorandum of understanding shall
include provisions that—
(1) establish administrative procedures and lines of
authority that ensure timely processing of—
(A) oil and gas lease applications;
(B) surface use plans of operation, including steps for
processing surface use plans; and
(C) applications for permits to drill consistent with
applicable timelines;
(2) eliminate duplication of effort by providing for coordination of planning and environmental compliance efforts;
(3) ensure that lease stipulations are—
(A) applied consistently;
(B) coordinated between agencies; and

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(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied;
(4) establish a joint data retrieval system that is capable
of—
(A) tracking applications and formal requests made
in accordance with procedures of the Federal onshore oil
and gas leasing program; and
(B) providing information regarding the status of the
applications and requests within the Department of the
Interior and the Department of Agriculture; and
(5) establish a joint geographic information system mapping
system for use in—
(A) tracking surface resource values to aid in resource
management; and
(B) processing surface use plans of operation and
applications for permits to drill.
SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING
ONSHORE FEDERAL LAND.

(a) ASSESSMENT.—Section 604 of the Energy Act of 2000 (42
U.S.C. 6217) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘reserve’’; and
(ii) by striking ‘‘and’’ after the semicolon; and
(B) by striking paragraph (2) and inserting the following:
‘‘(2) the extent and nature of any restrictions or impediments to the development of the resources, including—
‘‘(A) impediments to the timely granting of leases;
‘‘(B) post-lease restrictions, impediments, or delays on
development for conditions of approval, applications for
permits to drill, or processing of environmental permits;
and
‘‘(C) permits or restrictions associated with transporting the resources for entry into commerce; and
‘‘(3) the quantity of resources not produced or introduced
into commerce because of the restrictions.’’;
(2) in subsection (b)—
(A) by striking ‘‘reserve’’ and inserting ‘‘resource’’; and
(B) by striking ‘‘publically’’ and inserting ‘‘publicly’’;
and
(3) by striking subsection (d) and inserting the following:
‘‘(d) ASSESSMENTS.—Using the inventory, the Secretary of
Energy shall make periodic assessments of economically recoverable
resources accounting for a range of parameters such as current
costs, commodity prices, technology, and regulations.’’.
(b) METHODOLOGY.—The Secretary of the Interior shall use
the same assessment methodology across all geological provinces,
areas, and regions in preparing and issuing national geological
assessments to ensure accurate comparisons of geological resources.
SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

42 USC 15923.

42 USC 15924.

(a) ESTABLISHMENT.—The Secretary of the Interior (referred
to in this section as the ‘‘Secretary’’) shall establish a Federal
Permit Streamlining Pilot Project (referred to in this section as
the ‘‘Pilot Project’’).

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119 STAT. 724
Deadline.

Deadline.

Deadline.

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(b) MEMORANDUM OF UNDERSTANDING.—
(1) IN GENERAL.—Not later than 90 days after the date
of enactment of this Act, the Secretary shall enter into a memorandum of understanding for purposes of this section with—
(A) the Secretary of Agriculture;
(B) the Administrator of the Environmental Protection
Agency; and
(C) the Chief of Engineers.
(2) STATE PARTICIPATION.—The Secretary may request that
the Governors of Wyoming, Montana, Colorado, Utah, and New
Mexico be signatories to the memorandum of understanding.
(c) DESIGNATION OF QUALIFIED STAFF.—
(1) IN GENERAL.—Not later than 30 days after the date
of the signing of the memorandum of understanding under
subsection (b), all Federal signatory parties shall, if appropriate,
assign to each of the field offices identified in subsection (d)
an employee who has expertise in the regulatory issues relating
to the office in which the employee is employed, including,
as applicable, particular expertise in—
(A) the consultations and the preparation of biological
opinions under section 7 of the Endangered Species Act
of 1973 (16 U.S.C. 1536);
(B) permits under section 404 of Federal Water Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42
U.S.C. 7401 et seq.);
(D) planning under the National Forest Management
Act of 1976 (16 U.S.C. 472a et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(2) DUTIES.—Each employee assigned under paragraph (1)
shall—
(A) not later than 90 days after the date of assignment,
report to the Bureau of Land Management Field Managers
in the office to which the employee is assigned;
(B) be responsible for all issues relating to the jurisdiction of the home office or agency of the employee; and
(C) participate as part of the team of personnel working
on proposed energy projects, planning, and environmental
analyses.
(d) FIELD OFFICES.—The following Bureau of Land Management
Field Offices shall serve as the Pilot Project offices:
(1) Rawlins, Wyoming.
(2) Buffalo, Wyoming.
(3) Miles City, Montana.
(4) Farmington, New Mexico.
(5) Carlsbad, New Mexico.
(6) Grand Junction/Glenwood Springs, Colorado.
(7) Vernal, Utah.
(e) REPORTS.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to Congress a report
that—
(1) outlines the results of the Pilot Project to date; and
(2) makes a recommendation to the President regarding
whether the Pilot Project should be implemented throughout
the United States.

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(f) ADDITIONAL PERSONNEL.—The Secretary shall assign to each
field office identified in subsection (d) any additional personnel
that are necessary to ensure the effective implementation of—
(1) the Pilot Project; and
(2) other programs administered by the field offices,
including inspection and enforcement relating to energy
development on Federal land, in accordance with the multiple
use mandate of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.).
(g) PERMIT PROCESSING IMPROVEMENT FUND.—Section 35 of
the Mineral Leasing Act (30 U.S.C. 191) is amended by adding
at the end the following:
‘‘(c)(1) Notwithstanding the first sentence of subsection (a),
any rentals received from leases in any State (other than the
State of Alaska) on or after the date of enactment of this subsection
shall be deposited in the Treasury, to be allocated in accordance
with paragraph (2).
‘‘(2) Of the amounts deposited in the Treasury under paragraph
(1)—
‘‘(A) 50 percent shall be paid by the Secretary of the
Treasury to the State within the boundaries of which the leased
land is located or the deposits were derived; and
‘‘(B) 50 percent shall be deposited in a special fund in
the Treasury, to be known as the ‘BLM Permit Processing
Improvement Fund’ (referred to in this subsection as the
‘Fund’).
‘‘(3) For each of fiscal years 2006 through 2015, the Fund
shall be available to the Secretary of the Interior for expenditure,
without further appropriation and without fiscal year limitation,
for the coordination and processing of oil and gas use authorizations
on onshore Federal land under the jurisdiction of the Pilot Project
offices identified in section 365(d) of the Energy Policy Act of
2005.’’.
(h) TRANSFER OF FUNDS.—For the purposes of coordination
and processing of oil and gas use authorizations on Federal land
under the administration of the Pilot Project offices identified in
subsection (d), the Secretary may authorize the expenditure or
transfer of such funds as are necessary to—
(1) the United States Fish and Wildlife Service;
(2) the Bureau of Indian Affairs;
(3) the Forest Service;
(4) the Environmental Protection Agency;
(5) the Corps of Engineers; and
(6) the States of Wyoming, Montana, Colorado, Utah, and
New Mexico.
(i) FEES.—During the period in which the Pilot Project is
authorized, the Secretary shall not implement a rulemaking that
would enable an increase in fees to recover additional costs related
to processing drilling-related permit applications and use authorizations.
(j) SAVINGS PROVISION.—Nothing in this section affects—
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency whose employees are participating in the Pilot
Project.

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SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended by adding at the end the following:
‘‘(p) DEADLINES FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.—
‘‘(1) IN GENERAL.—Not later than 10 days after the date
on which the Secretary receives an application for any permit
to drill, the Secretary shall—
‘‘(A) notify the applicant that the application is complete; or
‘‘(B) notify the applicant that information is missing
and specify any information that is required to be submitted for the application to be complete.
‘‘(2) ISSUANCE OR DEFERRAL.—Not later than 30 days after
the applicant for a permit has submitted a complete application,
the Secretary shall—
‘‘(A) issue the permit, if the requirements under the
National Environmental Policy Act of 1969 and other
applicable law have been completed within such timeframe;
or
‘‘(B) defer the decision on the permit and provide to
the applicant a notice—
‘‘(i) that specifies any steps that the applicant could
take for the permit to be issued; and
‘‘(ii) a list of actions that need to be taken by
the agency to complete compliance with applicable law
together with timelines and deadlines for completing
such actions.
‘‘(3) REQUIREMENTS FOR DEFERRED APPLICATIONS.—
‘‘(A) IN GENERAL.—If the Secretary provides notice
under paragraph (2)(B), the applicant shall have a period
of 2 years from the date of receipt of the notice in which
to complete all requirements specified by the Secretary,
including providing information needed for compliance with
the National Environmental Policy Act of 1969.
‘‘(B) ISSUANCE OF DECISION ON PERMIT.—If the
applicant completes the requirements within the period
specified in subparagraph (A), the Secretary shall issue
a decision on the permit not later than 10 days after
the date of completion of the requirements described in
subparagraph (A), unless compliance with the National
Environmental Policy Act of 1969 and other applicable
law has not been completed within such timeframe.
‘‘(C) DENIAL OF PERMIT.—If the applicant does not complete the requirements within the period specified in
subparagraph (A) or if the applicant does not comply with
applicable law, the Secretary shall deny the permit.’’.

Notification.

Notice.

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42 USC 15925.

SEC. 367. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR
RIGHTS-OF-WAY ACROSS PUBLIC LANDS AND NATIONAL
FORESTS.

Deadline.

(a) UPDATE OF FEE SCHEDULE.—Not later than 1 year after
the date of enactment of this section—
(1) the Secretary of the Interior shall update section
2806.20 of title 43, Code of Federal Regulations, as in effect
on the date of enactment of this section, to revise the per

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acre rental fee zone value schedule by State, county, and type
of linear right-of-way use to reflect current values of land
in each zone; and
(2) the Secretary of Agriculture shall make the same revision for linear rights-of-way granted, issued, or renewed under
title V of the Federal Lands Policy and Management Act of
1976 (43 U.S.C. 1761 et seq.) on National Forest System land.
(b) FAIR MARKET VALUE RENTAL DETERMINATION FOR LINEAR
RIGHTS-OF-WAY.—The fair market value rent of a linear right-ofway across public lands or National Forest System lands issued
under section 504 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1764) or section 28 of the Mineral Leasing
Act (30 U.S.C. 185) shall be determined in accordance with subpart
2806 of title 43, Code of Federal Regulations, as in effect on the
date of enactment of this section (including the annual or periodic
updates specified in the regulations) and as updated in accordance
with subsection (a).

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SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

42 USC 15926.

(a) WESTERN STATES.—Not later than 2 years after the date
of enactment of this Act, the Secretary of Agriculture, the Secretary
of Commerce, the Secretary of Defense, the Secretary of Energy,
and the Secretary of the Interior (in this section referred to collectively as ‘‘the Secretaries’’), in consultation with the Federal Energy
Regulatory Commission, States, tribal or local units of governments
as appropriate, affected utility industries, and other interested persons, shall consult with each other and shall—
(1) designate, under their respective authorities, corridors
for oil, gas, and hydrogen pipelines and electricity transmission
and distribution facilities on Federal land in the eleven contiguous Western States (as defined in section 103(o) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702(o));
(2) perform any environmental reviews that may be
required to complete the designation of such corridors; and
(3) incorporate the designated corridors into the relevant
agency land use and resource management plans or equivalent
plans.
(b) OTHER STATES.—Not later than 4 years after the date
of enactment of this Act, the Secretaries, in consultation with the
Federal Energy Regulatory Commission, affected utility industries,
and other interested persons, shall jointly—
(1) identify corridors for oil, gas, and hydrogen pipelines
and electricity transmission and distribution facilities on Federal land in States other than those described in subsection
(a); and
(2) schedule prompt action to identify, designate, and incorporate the corridors into the applicable land use plans.
(c) ONGOING RESPONSIBILITIES.—The Secretaries, in consultation with the Federal Energy Regulatory Commission, affected
utility industries, and other interested parties, shall establish procedures under their respective authorities that—
(1) ensure that additional corridors for oil, gas, and
hydrogen pipelines and electricity transmission and distribution
facilities on Federal land are promptly identified and designated
as necessary; and

Deadline.

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Procedures.

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(2) expedite applications to construct or modify oil, gas,
and hydrogen pipelines and electricity transmission and distribution facilities within such corridors, taking into account
prior analyses and environmental reviews undertaken during
the designation of such corridors.
(d) CONSIDERATIONS.—In carrying out this section, the Secretaries shall take into account the need for upgraded and new
electricity transmission and distribution facilities to—
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to deliver
electricity.
(e) SPECIFICATIONS OF CORRIDOR.—A corridor designated under
this section shall, at a minimum, specify the centerline, width,
and compatible uses of the corridor.
Oil Shale, Tar
Sands, and Other
Strategic
Unconventional
Fuels Act of
2005.
Deadlines.
42 USC 15927.

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SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL FUELS.

(a) SHORT TITLE.—This section may be cited as the ‘‘Oil Shale,
Tar Sands, and Other Strategic Unconventional Fuels Act of 2005’’.
(b) DECLARATION OF POLICY.—Congress declares that it is the
policy of the United States that—
(1) United States oil shale, tar sands, and other unconventional fuels are strategically important domestic resources that
should be developed to reduce the growing dependence of the
United States on politically and economically unstable sources
of foreign oil imports;
(2) the development of oil shale, tar sands, and other strategic unconventional fuels, for research and commercial
development, should be conducted in an environmentally sound
manner, using practices that minimize impacts; and
(3) development of those strategic unconventional fuels
should occur, with an emphasis on sustainability, to benefit
the United States while taking into account affected States
and communities.
(c) LEASING PROGRAM FOR RESEARCH AND DEVELOPMENT OF
OIL SHALE AND TAR SANDS.—In accordance with section 21 of
the Mineral Leasing Act (30 U.S.C. 241) and any other applicable
law, except as provided in this section, not later than 180 days
after the date of enactment of this Act, from land otherwise available for leasing, the Secretary of the Interior (referred to in this
section as the ‘‘Secretary’’) shall make available for leasing such
land as the Secretary considers to be necessary to conduct research
and development activities with respect to technologies for the
recovery of liquid fuels from oil shale and tar sands resources
on public lands. Prospective public lands within each of the States
of Colorado, Utah, and Wyoming shall be made available for such
research and development leasing.
(d) PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT AND
COMMERCIAL LEASING PROGRAM FOR OIL SHALE AND TAR SANDS.—
(1) PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.—
Not later than 18 months after the date of enactment of this
Act, in accordance with section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the
Secretary shall complete a programmatic environmental impact
statement for a commercial leasing program for oil shale and
tar sands resources on public lands, with an emphasis on

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the most geologically prospective lands within each of the States
of Colorado, Utah, and Wyoming.
(2) FINAL REGULATION.—Not later than 6 months after
the completion of the programmatic environmental impact
statement under this subsection, the Secretary shall publish
a final regulation establishing such program.
(e) COMMENCEMENT OF COMMERCIAL LEASING OF OIL SHALE
AND TAR SANDS.—Not later than 180 days after publication of
the final regulation required by subsection (d), the Secretary shall
consult with the Governors of States with significant oil shale
and tar sands resources on public lands, representatives of local
governments in such States, interested Indian tribes, and other
interested persons, to determine the level of support and interest
in the States in the development of tar sands and oil shale resources.
If the Secretary finds sufficient support and interest exists in a
State, the Secretary may conduct a lease sale in that State under
the commercial leasing program regulations. Evidence of interest
in a lease sale under this subsection shall include, but not be
limited to, appropriate areas nominated for leasing by potential
lessees and other interested parties.
(f) DILIGENT DEVELOPMENT REQUIREMENTS.—The Secretary
shall, by regulation, designate work requirements and milestones
to ensure the diligent development of the lease.
(g) INITIAL REPORT BY THE SECRETARY OF THE INTERIOR.—
Within 90 days after the date of enactment of this Act, the Secretary
of the Interior shall report to the Committee on Resources of the
House of Representatives and the Committee on Energy and Natural Resources of the Senate on—
(1) the interim actions necessary to—
(A) develop the program, complete the programmatic
environmental impact statement, and promulgate the final
regulation as required by subsection (d); and
(B) conduct the first lease sales under the program
as required by subsection (e); and
(2) a schedule to complete such actions within the time
limits mandated by this section.
(h) TASK FORCE.—
(1) ESTABLISHMENT.—The Secretary of Energy, in cooperation with the Secretary of the Interior and the Secretary of
Defense, shall establish a task force to develop a program
to coordinate and accelerate the commercial development of
strategic unconventional fuels, including but not limited to
oil shale and tar sands resources within the United States,
in an integrated manner.
(2) COMPOSITION.—The Task Force shall be composed of—
(A) the Secretary of Energy (or the designee of the
Secretary);
(B) the Secretary of the Interior (or the designee of
the Secretary of the Interior);
(C) the Secretary of Defense (or the designee of the
Secretary of Defense);
(D) the Governors of affected States; and
(E) representatives of local governments in affected
areas.
(3) RECOMMENDATIONS.—The Task Force shall make such
recommendations regarding promoting the development of the

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strategic unconventional fuels resources within the United
States as it may deem appropriate.
(4) PARTNERSHIPS.—The Task Force shall make recommendations with respect to initiating a partnership with
the Province of Alberta, Canada, for purposes of sharing
information relating to the development and production of oil
from tar sands, and similar partnerships with other nations
that contain significant oil shale resources.
(5) REPORTS.—
(A) INITIAL REPORT.—Not later than 180 days after
the date of enactment of this Act, the Task Force shall
submit to the President and Congress a report that
describes the analysis and recommendations of the Task
Force.
(B) SUBSEQUENT REPORTS.—The Secretary shall provide an annual report describing the progress in developing
the strategic unconventional fuels resources within the
United States for each of the 5 years following submission
of the report provided for in subparagraph (A).
(i) OFFICE OF PETROLEUM RESERVES.—
(1) IN GENERAL.—The Office of Petroleum Reserves of the
Department of Energy shall—
(A) coordinate the creation and implementation of a
commercial strategic fuel development program for the
United States;
(B) evaluate the strategic importance of unconventional
sources of strategic fuels to the security of the United
States;
(C) promote and coordinate Federal Government
actions that facilitate the development of strategic fuels
in order to effectively address the energy supply needs
of the United States;
(D) identify, assess, and recommend appropriate
actions of the Federal Government required to assist in
the development and manufacturing of strategic fuels; and
(E) coordinate and facilitate appropriate relationships
between private industry and the Federal Government to
promote sufficient and timely private investment to
commercialize strategic fuels for domestic and military use.
(2) CONSULTATION AND COORDINATION.—The Office of Petroleum Reserves shall work closely with the Task Force and
coordinate its staff support.
(3) ANNUAL REPORTS.—Not later than 180 days after the
date of enactment of this Act and annually thereafter, the
Secretary shall submit to Congress a report that describes
the activities of the Office of Petroleum Reserves carried out
under this subsection.
(j) MINERAL LEASING ACT AMENDMENTS.—
(1) SECTION 17.—Section 17(b)(2) of the Mineral Leasing
Act (30 U.S.C. 226(b)(2)), as amended by section 350, is further
amended—
(A) in subparagraph (A) (as designated by the amendment made by subsection (a)(1) of that section) by designating the first, second, and third sentences as clauses
(i), (ii), and (iii), respectively;
(B) by moving clause (ii), as so designated, so as to
begin immediately after and below clause (i);

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(C) by moving clause (iii), as so designated, so as
to begin immediately after and below clause (ii);
(D) in clause (i) of subparagraph (A) (as designated
by subparagraph (A) of this paragraph) by striking ‘‘five
thousand one hundred and twenty’’ and inserting ‘‘5,760’’;
and
(E) by adding at the end the following:
‘‘(iv) No lease issued under this paragraph shall be included
in any chargeability limitation associated with oil and gas
leases.’’.
(2) SECTION 21.—Section 21(a) of the Mineral Leasing Act
(30 U.S.C. 241(a)) is amended—
(A) by striking ‘‘(a) That the Secretary’’ and inserting
the following:
‘‘(a)(1) The Secretary’’;
(B) by striking ‘‘; that no lease’’ and inserting a period,
followed by the following:
‘‘(2) No lease’’;
(C) by striking ‘‘Leases may be for’’ and inserting the
following:
‘‘(3) Leases may be for’’;
(D) by striking ‘‘For the privilege’’ and inserting the
following:
‘‘(4) For the privilege’’;
(E) in paragraph (2) (as designated by subparagraph
(B) of this paragraph) by striking ‘‘five thousand one hundred and twenty’’ and inserting ‘‘5,760’’;
(F) in paragraph (4) (as designated by subparagraph
(D) of this paragraph) by striking ‘‘rate of 50 cents per
acre’’ and inserting ‘‘rate of $2.00 per acre’’;
(G)(i) by striking ‘‘: Provided further, That not more
than one lease shall be granted under this section to any’’
and inserting ‘‘: Provided further, That no’’; and
(ii) by striking ‘‘except that with respect to leases for’’
and inserting ‘‘shall acquire or hold more than 50,000 acres
of oil shale leases in any one State. For’’; and
(H) by adding at the end the following:
‘‘(5) No lease issued under this section shall be included
in any chargeability limitation associated with oil and gas
leases.’’.
(k) INTERAGENCY COORDINATION AND EXPEDITIOUS REVIEW OF
PERMITTING PROCESS.—
(1) DEPARTMENT OF THE INTERIOR AS LEAD AGENCY.—Upon
written request of a prospective applicant for Federal authorization to develop a proposed oil shale or tar sands project, the
Department of the Interior shall act as the lead Federal agency
for the purposes of coordinating all applicable Federal
authorizations and environmental reviews. To the maximum
extent practicable under applicable Federal law, the Secretary
shall coordinate this Federal authorization and review process
with any Indian tribes and State and local agencies responsible
for conducting any separate permitting and environmental
reviews.
(2) IMPLEMENTING REGULATIONS.—Not later than 6 months
after the date of enactment of this Act, the Secretary shall
issue any regulations necessary to implement this subsection.
(l) COST-SHARED DEMONSTRATION TECHNOLOGIES.—

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PUBLIC LAW 109–58—AUG. 8, 2005
(1) IDENTIFICATION.—The Secretary of Energy shall identify
technologies for the development of oil shale and tar sands
that—
(A) are ready for demonstration at a commerciallyrepresentative scale; and
(B) have a high probability of leading to commercial
production.
(2) ASSISTANCE.—For each technology identified under
paragraph (1), the Secretary of Energy may provide—
(A) technical assistance;
(B) assistance in meeting environmental and regulatory requirements; and
(C) cost-sharing assistance.
(m) NATIONAL OIL SHALE AND TAR SANDS ASSESSMENT.—
(1) ASSESSMENT.—
(A) IN GENERAL.—The Secretary shall carry out a
national assessment of oil shale and tar sands resources
for the purposes of evaluating and mapping oil shale and
tar sands deposits, in the geographic areas described in
subparagraph (B). In conducting such an assessment, the
Secretary shall make use of the extensive geological assessment work for oil shale and tar sands already conducted
by the United States Geological Survey.
(B) GEOGRAPHIC AREAS.—The geographic areas referred
to in subparagraph (A), listed in the order in which the
Secretary shall assign priority, are—
(i) the Green River Region of the States of Colorado, Utah, and Wyoming;
(ii) the Devonian oil shales and other hydrocarbonbearing rocks having the nomenclature of ‘‘shale’’
located east of the Mississippi River; and
(iii) any remaining area in the central and western
United States (including the State of Alaska) that contains oil shale and tar sands, as determined by the
Secretary.
(2) USE OF STATE SURVEYS AND UNIVERSITIES.—In carrying
out the assessment under paragraph (1), the Secretary may
request assistance from any State-administered geological
survey or university.
(n) LAND EXCHANGES.—
(1) IN GENERAL.—To facilitate the recovery of oil shale
and tar sands, especially in areas where Federal, State, and
private lands are intermingled, the Secretary shall consider
the use of land exchanges where appropriate and feasible to
consolidate land ownership and mineral interests into manageable areas.
(2) IDENTIFICATION AND PRIORITY OF PUBLIC LANDS.—The
Secretary shall identify public lands containing deposits of oil
shale or tar sands within the Green River, Piceance Creek,
Uintah, and Washakie geologic basins, and shall give priority
to implementing land exchanges within those basins. The Secretary shall consider the geology of the respective basin in
determining the optimum size of the lands to be consolidated.
(3) COMPLIANCE WITH SECTION 206 OF FLPMA.—A land
exchange undertaken in furtherance of this subsection shall
be implemented in accordance with section 206 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1716).

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(o) ROYALTY RATES FOR LEASES.—The Secretary shall establish
royalties, fees, rentals, bonus, or other payments for leases under
this section that shall—
(1) encourage development of the oil shale and tar sands
resource; and
(2) ensure a fair return to the United States.
(p) HEAVY OIL TECHNICAL AND ECONOMIC ASSESSMENT.—The
Secretary of Energy shall update the 1987 technical and economic
assessment of domestic heavy oil resources that was prepared by
the Interstate Oil and Gas Compact Commission. Such an update
should include all of North America and cover all unconventional
oil, including heavy oil, tar sands (oil sands), and oil shale.
(q) PROCUREMENT OF UNCONVENTIONAL FUELS BY THE DEPARTMENT OF DEFENSE.—
(1) IN GENERAL.—Chapter 141 of title 10, United States
Code, is amended by inserting after section 2398 the following:
‘‘§ 2398a. Procurement of fuel derived from coal, oil shale,
and tar sands
‘‘(a) USE OF FUEL TO MEET DEPARTMENT OF DEFENSE NEEDS.—
The Secretary of Defense shall develop a strategy to use fuel produced, in whole or in part, from coal, oil shale, and tar sands
(referred to in this section as a ‘covered fuel’) that are extracted
by either mining or in-situ methods and refined or otherwise processed in the United States in order to assist in meeting the fuel
requirements of the Department of Defense when the Secretary
determines that it is in the national interest.
‘‘(b) AUTHORITY TO PROCURE.—The Secretary of Defense may
enter into 1 or more contracts or other agreements (that meet
the requirements of this section) to procure a covered fuel to meet
1 or more fuel requirements of the Department of Defense.
‘‘(c) CLEAN FUEL REQUIREMENTS.—A covered fuel may be procured under subsection (b) only if the covered fuel meets such
standards for clean fuel produced from domestic sources as the
Secretary of Defense shall establish for purposes of this section
in consultation with the Department of Energy.
‘‘(d) MULTIYEAR CONTRACT AUTHORITY.—Subject to applicable
provisions of law, any contract or other agreement for the procurement of covered fuel under subsection (b) may be for 1 or more
years at the election of the Secretary of Defense.
‘‘(e) FUEL SOURCE ANALYSIS.—In order to facilitate the procurement by the Department of Defense of covered fuel under subsection
(b), the Secretary of Defense may carry out a comprehensive assessment of current and potential locations in the United States for
the supply of covered fuel to the Department.’’.
(2) CLERICAL AMENDMENT.—The table of sections for
chapter 141 of title 10, United States Code, is amended by
inserting after the item relating to section 2398 the following:
‘‘2398a. Procurement of fuel derived from coal, oil shale, and tar sands.’’.

(r) STATE WATER RIGHTS.—Nothing in this section preempts
or affects any State water law or interstate compact relating to
water.
(s) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

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PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 370. FINGER LAKES WITHDRAWAL.

All Federal land within the boundary of Finger Lakes National
Forest in the State of New York is withdrawn from—
(1) all forms of entry, appropriation, or disposal under
the public land laws; and
(2) disposition under all laws relating to oil and gas leasing.
30 USC 188 note.

SEC. 371. REINSTATEMENT OF LEASES.

Effective date.
Termination
date.

(a) LEASES TERMINATED FOR CERTAIN FAILURE TO PAY
RENTAL.—Notwithstanding section 31(d)(2)(B) of the Mineral
Leasing Act (30 U.S.C. 188(d)(2)(B)) as in effect before the effective
date of this section, and notwithstanding the amendment made
by subsection (b) of this section, the Secretary of the Interior may
reinstate any oil and gas lease issued under that Act that was
terminated for failure of a lessee to pay the full amount of rental
on or before the anniversary date of the lease, during the period
beginning on September 1, 2001, and ending on June 30, 2004,
if—
(1) not later than 120 days after the date of enactment
of this Act, the lessee—
(A) files a petition for reinstatement of the lease;
(B) complies with the conditions of section 31(e) of
the Mineral Leasing Act (30 U.S.C. 188(e)); and
(C) certifies that the lessee did not receive a notice
of termination by the date that was 13 months before
the date of termination; and
(2) the land is available for leasing.
(b) DEADLINE FOR PETITIONS, GENERALLY.—Section 31(d)(2) of
the Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by striking
subparagraphs (A) and (B) and inserting the following:
‘‘(A) with respect to any lease that terminated under
subsection (b) on or before the date of the enactment of
the Energy Policy Act of 2005, a petition for reinstatement
(together with the required back rental and royalty
accruing after the date of termination) is filed on or before
the earlier of—
‘‘(i) 60 days after the lessee receives from the Secretary notice of termination, whether by return of check
or by any other form of actual notice; or
‘‘(ii) 15 months after the termination of the lease;
or
‘‘(B) with respect to any lease that terminates under
subsection (b) after the date of the enactment of the Energy
Policy Act of 2005, a petition for reinstatement (together
with the required back rental and royalty accruing after
the date of termination) is filed on or before the earlier
of—
‘‘(i) 60 days after receipt of the notice of termination sent by the Secretary by certified mail to all
lessees of record; or
‘‘(ii) 24 months after the termination of the lease.’’.

Deadline.

Certification.

42 USC 15928.

SEC. 372. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON
PUBLIC LAND.

(a) MEMORANDUM OF UNDERSTANDING.—

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(1) IN GENERAL.—Not later than 6 months after the date
of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of the Interior, the Secretary of Agriculture, and the Secretary of Defense with respect to lands
under their respective jurisdictions, shall enter into a memorandum of understanding to coordinate all applicable Federal
authorizations and environmental reviews relating to a proposed or existing utility facility. To the maximum extent practicable under applicable law, the Secretary of Energy shall,
to ensure timely review and permit decisions, coordinate such
authorizations and reviews with any Indian tribes, multi-State
entities, and State agencies that are responsible for conducting
any separate permitting and environmental reviews of the
affected utility facility.
(2) CONTENTS.—The memorandum of understanding shall
include provisions that—
(A) establish—
(i) a unified right-of-way application form; and
(ii) an administrative procedure for processing
right-of-way applications, including lines of authority,
steps in application processing, and timeframes for
application processing;
(B) provide for coordination of planning relating to
the granting of the rights-of-way;
(C) provide for an agreement among the affected Federal agencies to prepare a single environmental review
document to be used as the basis for all Federal authorization decisions; and
(D) provide for coordination of use of right-of-way stipulations to achieve consistency.
(b) NATURAL GAS PIPELINES.—
(1) IN GENERAL.—With respect to permitting activities for
interstate natural gas pipelines, the May 2002 document entitled ‘‘Interagency Agreement On Early Coordination Of
Required Environmental And Historic Preservation Reviews
Conducted In Conjunction With The Issuance Of Authorizations
To Construct And Operate Interstate Natural Gas Pipelines
Certificated By The Federal Energy Regulatory Commission’’
shall constitute compliance with subsection (a).
(2) REPORT.—
(A) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, and every 2 years thereafter,
agencies that are signatories to the document referred to
in paragraph (1) shall transmit to Congress a report on
how the agencies under the jurisdiction of the Secretaries
are incorporating and implementing the provisions of the
document referred to in paragraph (1).
(B) CONTENTS.—The report shall address—
(i) efforts to implement the provisions of the document referred to in paragraph (1);
(ii) whether the efforts have had a streamlining
effect;
(iii) further improvements to the permitting
process of the agency; and
(iv) recommendations for inclusion of State and
tribal governments in a coordinated permitting process.

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(c) DEFINITION OF UTILITY FACILITY.—In this section, the term
‘‘utility facility’’ means any privately, publicly, or cooperatively
owned line, facility, or system—
(1) for the transportation of—
(A) oil, natural gas, synthetic liquid fuel, or gaseous
fuel;
(B) any refined product produced from oil, natural
gas, synthetic liquid fuel, or gaseous fuel; or
(C) products in support of the production of material
referred to in subparagraph (A) or (B);
(2) for storage and terminal facilities in connection with
the production of material referred to in paragraph (1); or
(3) for the generation, transmission, and distribution of
electric energy.
SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER PADRE ISLAND NATIONAL SEASHORE.

(a) FINDINGS.—Congress finds the following:
(1) Pursuant to Public Law 87–712 (16 U.S.C. 459d et
seq.; popularly known as the ‘‘Federal Enabling Act’’) and various deeds and actions under that Act, the United States is
the owner of only the surface estate of certain lands constituting
the Padre Island National Seashore.
(2) Ownership of the oil, gas, and other minerals in the
subsurface estate of the lands constituting the Padre Island
National Seashore was never acquired by the United States,
and ownership of those interests is held by the State of Texas
and private parties.
(3) Public Law 87–712 (16 U.S.C. 459d et seq.)—
(A) expressly contemplated that the United States
would recognize the ownership and future development
of the oil, gas, and other minerals in the subsurface estate
of the lands constituting the Padre Island National Seashore by the owners and their mineral lessees; and
(B) recognized that approval of the State of Texas
was required to create Padre Island National Seashore.
(4) Approval was given for the creation of Padre Island
National Seashore by the State of Texas through Tex. Rev.
Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly
recognized that development of the oil, gas, and other minerals
in the subsurface of the lands constituting Padre Island
National Seashore would be conducted with full rights of ingress
and egress under the laws of the State of Texas.
(b) SENSE OF CONGRESS.—It is the sense of Congress that
with regard to Federal law, any regulation of the development
of oil, gas, or other minerals in the subsurface of the lands constituting Padre Island National Seashore should be made as if those
lands retained the status that the lands had on September 27,
1962.
Louisiana.

SEC. 374. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

Section 102 of Public Law 102–562 (106 Stat. 4234) is amended
by striking subsection (b) and inserting the following:
‘‘(b) RESERVATION OF OIL AND GAS RIGHTS AND CONVEYANCE
OF REMAINING MINERAL RIGHTS.—Subject to the limitations set
forth in subsection (c), the United States hereby excepts and
reserves from the provisions of subsection (a), all rights to oil
and gas underlying such lands, along with the right to explore

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for, and produce the oil and gas under applicable law and such
regulations as the Secretary of the Interior may prescribe. Not
later than 180 days after the date of enactment of the Energy
Policy Act of 2005, the Secretary of the Interior shall convey the
remaining mineral rights to the parties who as of the date of
enactment of the Energy Policy Act of 2005 would be recognized
as holders of a right, title, or interest to any portion of such
minerals under the laws of the State of Louisiana, but for the
interest of the United States in such minerals.
‘‘(c) OIL AND GAS RESOURCE ASSESSMENT AND REPORT.—The
United States Geological Survey shall conduct a resource assessment and publish a report of the findings of such resource assessment (‘USGS Assessment and Report’) within 1 year of the date
of enactment of the Energy Policy Act of 2005. The USGS Assessment and Report shall provide an assessment of all oil and gas
resources underlying the certain lands in Livingston Parish, Louisiana, as described in section 103 (the ‘Livingston Parish lands’).
Upon a finding by the Secretary of the Interior based upon the
USGS Assessment and Report that it is unlikely that economically
recoverable oil and gas resources are present, the Secretary shall
convey all rights to oil and gas underlying such lands to the recipients, or their successors, heirs, or assigns, of the conveyances under
subsection (b). Such further conveyances shall be made within
180 days after a finding by the Secretary that it is unlikely that
economically recoverable oil and gas resources are present.’’.

Deadlines.

Subtitle G—Miscellaneous
SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY
DETERMINATION UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

Section 319 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1465) is amended to read as follows:
‘‘APPEALS TO THE SECRETARY
‘‘SEC. 319. (a) NOTICE.—Not later than 30 days after the date
of the filing of an appeal to the Secretary of a consistency determination under section 307, the Secretary shall publish an initial notice
in the Federal Register.
‘‘(b) CLOSURE OF RECORD.—
‘‘(1) IN GENERAL.—Not later than the end of the 160-day
period beginning on the date of publication of an initial notice
under subsection (a), except as provided in paragraph (3), the
Secretary shall immediately close the decision record and
receive no more filings on the appeal.
‘‘(2) NOTICE.—After closing the administrative record, the
Secretary shall immediately publish a notice in the Federal
Register that the administrative record has been closed.
‘‘(3) EXCEPTION.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), during
the 160-day period described in paragraph (1), the Secretary may stay the closing of the decision record—
‘‘(i) for a specific period mutually agreed to in
writing by the appellant and the State agency; or
‘‘(ii) as the Secretary determines necessary to
receive, on an expedited basis—

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publication.

Federal Register,
publication.

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119 STAT. 738

‘‘(I) any supplemental information specifically
requested by the Secretary to complete a consistency review under this Act; or
‘‘(II) any clarifying information submitted by
a party to the proceeding related to information
in the consolidated record compiled by the lead
Federal permitting agency.
‘‘(B) APPLICABILITY.—The Secretary may only stay the
160-day period described in paragraph (1) for a period
not to exceed 60 days.
‘‘(c) DEADLINE FOR DECISION.—
‘‘(1) IN GENERAL.—Not later than 60 days after the date
of publication of a Federal Register notice stating when the
decision record for an appeal has been closed, the Secretary
shall issue a decision or publish a notice in the Federal Register
explaining why a decision cannot be issued at that time.
‘‘(2) SUBSEQUENT DECISION.—Not later than 15 days after
the date of publication of a Federal Register notice explaining
why a decision cannot be issued within the 60-day period,
the Secretary shall issue a decision.’’.

Notices.
Federal Register,
publication.

16 USC 1466.

PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 382. APPEALS RELATING TO OFFSHORE MINERAL DEVELOPMENT.

For any Federal administrative agency proceeding that is an
appeal or review under section 319 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1465), as amended by this Act, related
to any Federal authorization for the permitting, approval, or other
authorization of an energy project, the lead Federal permitting
agency for the project shall, with the cooperation of Federal and
State administrative agencies, maintain a consolidated record of
all decisions made or actions taken by the lead agency or by another
Federal or State administrative agency or officer. Such record shall
be the initial record for appeals or reviews under that Act, provided
that the record may be supplemented as expressly provided pursuant to section 319 of that Act.
SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER
CONTINENTAL SHELF LANDS ACT.

(a) ROYALTY RELIEF.—
(1) IN GENERAL.—For purposes of providing compensation
for lessees and a State for which amounts are authorized by
section 6004(c) of the Oil Pollution Act of 1990 (Public Law
101–380), a lessee may withhold from payment any royalty
due and owing to the United States under any leases under
the Outer Continental Shelf Lands Act (43 U.S.C. 1301 et
seq.) for offshore oil or gas production from a covered lease
tract if, on or before the date that the payment is due and
payable to the United States, the lessee makes a payment
to the State of 44 cents for every $1 of royalty withheld.
(2) TREATMENT OF AMOUNTS.—Any royalty withheld by a
lessee in accordance with this section (including any portion
thereof that is paid to the State under paragraph (1)) shall
be treated as paid for purposes of satisfaction of the royalty
obligations of the lessee to the United States.
(3) CERTIFICATION OF WITHHELD AMOUNTS.—The Secretary
of the Treasury shall—
(A) determine the amount of royalty withheld by a
lessee under this section; and

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(B) promptly publish a certification when the total
amount of royalty withheld by the lessee under this section
is equal to—
(i) the dollar amount stated at page 47 of Senate
Report number 101–534, which is designated therein
as the total drainage claim for the West Delta field;
plus
(ii) interest as described at page 47 of that Report.
(b) PERIOD OF ROYALTY RELIEF.—Subsection (a) shall apply
to royalty amounts that are due and payable in the period beginning
on October 1, 2006, and ending on the date on which the Secretary
of the Treasury publishes a certification under subsection (a)(3)(B).
(c) DEFINITIONS.—As used in this section:
(1) COVERED LEASE TRACT.—The term ‘‘covered lease tract’’
means a leased tract (or portion of a leased tract)—
(A) lying seaward of the zone defined and governed
by section 8(g) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(g)); or
(B) lying within such zone but to which such section
does not apply.
(2) LESSEE.—The term ‘‘lessee’’—
(A) means a person or entity that, on the date of
the enactment of the Oil Pollution Act of 1990, was a
lessee referred to in section 6004(c) of that Act (as in
effect on that date of the enactment), but did not hold
lease rights in Federal offshore lease OCS–G–5669; and
(B) includes successors and affiliates of a person or
entity described in subparagraph (A).

Publication.

Applicability.
Effective date.
Termination
date.

SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.

Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is amended to read as follows:
‘‘SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COASTAL POLITICAL SUBDIVISION.—The term ‘coastal
political subdivision’ means a political subdivision of a coastal
State any part of which political subdivision is—
‘‘(A) within the coastal zone (as defined in section
304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453)) of the coastal State as of the date of enactment of the Energy Policy Act of 2005; and
‘‘(B) not more than 200 nautical miles from the
geographic center of any leased tract.
‘‘(2) COASTAL POPULATION.—The term ‘coastal population’
means the population, as determined by the most recent official
data of the Census Bureau, of each political subdivision any
part of which lies within the designated coastal boundary of
a State (as defined in a State’s coastal zone management program under the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.)).
‘‘(3) COASTAL STATE.—The term ‘coastal State’ has the
meaning given the term in section 304 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1453).
‘‘(4) COASTLINE.—The term ‘coastline’ has the meaning
given the term ‘coast line’ in section 2 of the Submerged Lands
Act (43 U.S.C. 1301).

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PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(5) DISTANCE.—The term ‘distance’ means the minimum
great circle distance, measured in statute miles.
‘‘(6) LEASED TRACT.—The term ‘leased tract’ means a tract
that is subject to a lease under section 6 or 8 for the purpose
of drilling for, developing, and producing oil or natural gas
resources.
‘‘(7) LEASING MORATORIA.—The term ‘leasing moratoria’
means the prohibitions on preleasing, leasing, and related
activities on any geographic area of the outer Continental Shelf
as contained in sections 107 through 109 of division E of the
Consolidated Appropriations Act, 2005 (Public Law 108–447;
118 Stat. 3063).
‘‘(8) POLITICAL SUBDIVISION.—The term ‘political subdivision’ means the local political jurisdiction immediately below
the level of State government, including counties, parishes,
and boroughs.
‘‘(9) PRODUCING STATE.—
‘‘(A) IN GENERAL.—The term ‘producing State’ means
a coastal State that has a coastal seaward boundary within
200 nautical miles of the geographic center of a leased
tract within any area of the outer Continental Shelf.
‘‘(B) EXCLUSION.—The term ‘producing State’ does not
include a producing State, a majority of the coastline of
which is subject to leasing moratoria, unless production
was occurring on January 1, 2005, from a lease within
10 nautical miles of the coastline of that State.
‘‘(10) QUALIFIED OUTER CONTINENTAL SHELF REVENUES.—
‘‘(A) IN GENERAL.—The term ‘qualified Outer Continental Shelf revenues’ means all amounts received by the
United States from each leased tract or portion of a leased
tract—
‘‘(i) lying—
‘‘(I) seaward of the zone covered by section
8(g); or
‘‘(II) within that zone, but to which section
8(g) does not apply; and
‘‘(ii) the geographic center of which lies within
a distance of 200 nautical miles from any part of the
coastline of any coastal State.
‘‘(B) INCLUSIONS.—The term ‘qualified Outer Continental Shelf revenues’ includes bonus bids, rents, royalties
(including payments for royalty taken in kind and sold),
net profit share payments, and related late-payment
interest from natural gas and oil leases issued under this
Act.
‘‘(C) EXCLUSION.—The term ‘qualified Outer Continental Shelf revenues’ does not include any revenues from
a leased tract or portion of a leased tract that is located
in a geographic area subject to a leasing moratorium on
January 1, 2005, unless the lease was in production on
January 1, 2005.
‘‘(b) PAYMENTS TO PRODUCING STATES AND COASTAL POLITICAL
SUBDIVISIONS.—
‘‘(1) IN GENERAL.—The Secretary shall, without further
appropriation, disburse to producing States and coastal political
subdivisions in accordance with this section $250,000,000 for
each of fiscal years 2007 through 2010.

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‘‘(2) DISBURSEMENT.—In each fiscal year, the Secretary
shall disburse to each producing State for which the Secretary
has approved a plan under subsection (c), and to coastal political
subdivisions under paragraph (4), such funds as are allocated
to the producing State or coastal political subdivision, respectively, under this section for the fiscal year.
‘‘(3) ALLOCATION AMONG PRODUCING STATES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(C) and subject to subparagraph (D), the amounts available
under paragraph (1) shall be allocated to each producing
State based on the ratio that—
‘‘(i) the amount of qualified outer Continental Shelf
revenues generated off the coastline of the producing
State; bears to
‘‘(ii) the amount of qualified outer Continental
Shelf revenues generated off the coastline of all producing States.
‘‘(B) AMOUNT OF OUTER CONTINENTAL SHELF REVENUES.—For purposes of subparagraph (A)—
‘‘(i) the amount of qualified outer Continental Shelf
revenues for each of fiscal years 2007 and 2008 shall
be determined using qualified outer Continental Shelf
revenues received for fiscal year 2006; and
‘‘(ii) the amount of qualified outer Continental
Shelf revenues for each of fiscal years 2009 and 2010
shall be determined using qualified outer Continental
Shelf revenues received for fiscal year 2008.
‘‘(C) MULTIPLE PRODUCING STATES.—In a case in which
more than one producing State is located within 200 nautical miles of any portion of a leased tract, the amount
allocated to each producing State for the leased tract shall
be inversely proportional to the distance between—
‘‘(i) the nearest point on the coastline of the producing State; and
‘‘(ii) the geographic center of the leased tract.
‘‘(D) MINIMUM ALLOCATION.—The amount allocated to
a producing State under subparagraph (A) shall be at least
1 percent of the amounts available under paragraph (1).
‘‘(4) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS.—
‘‘(A) IN GENERAL.—The Secretary shall pay 35 percent
of the allocable share of each producing State, as determined under paragraph (3) to the coastal political subdivisions in the producing State.
‘‘(B) FORMULA.—Of the amount paid by the Secretary
to coastal political subdivisions under subparagraph (A)—
‘‘(i) 25 percent shall be allocated to each coastal
political subdivision in the proportion that—
‘‘(I) the coastal population of the coastal political subdivision; bears to
‘‘(II) the coastal population of all coastal political subdivisions in the producing State;
‘‘(ii) 25 percent shall be allocated to each coastal
political subdivision in the proportion that—
‘‘(I) the number of miles of coastline of the
coastal political subdivision; bears to

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‘‘(II) the number of miles of coastline of all
coastal political subdivisions in the producing
State; and
‘‘(iii) 50 percent shall be allocated in amounts that
are inversely proportional to the respective distances
between the points in each coastal political subdivision
that are closest to the geographic center of each leased
tract, as determined by the Secretary.
‘‘(C) EXCEPTION FOR THE STATE OF LOUISIANA.—For
the purposes of subparagraph (B)(ii), the coastline for
coastal political subdivisions in the State of Louisiana without a coastline shall be considered to be 1⁄3 the average
length of the coastline of all coastal political subdivisions
with a coastline in the State of Louisiana.
‘‘(D) EXCEPTION FOR THE STATE OF ALASKA.—For the
purposes of carrying out subparagraph (B)(iii) in the State
of Alaska, the amounts allocated shall be divided equally
among the two coastal political subdivisions that are closest
to the geographic center of a leased tract.
‘‘(E) EXCLUSION OF CERTAIN LEASED TRACTS.—For purposes of subparagraph (B)(iii), a leased tract or portion
of a leased tract shall be excluded if the tract or portion
of a leased tract is located in a geographic area subject
to a leasing moratorium on January 1, 2005, unless the
lease was in production on that date.
‘‘(5) NO APPROVED PLAN.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B) and
except as provided in subparagraph (C), in a case in which
any amount allocated to a producing State or coastal political subdivision under paragraph (4) or (5) is not disbursed
because the producing State does not have in effect a
plan that has been approved by the Secretary under subsection (c), the Secretary shall allocate the undisbursed
amount equally among all other producing States.
‘‘(B) RETENTION OF ALLOCATION.—The Secretary shall
hold in escrow an undisbursed amount described in
subparagraph (A) until such date as the final appeal
regarding the disapproval of a plan submitted under subsection (c) is decided.
‘‘(C) WAIVER.—The Secretary may waive subparagraph
(A) with respect to an allocated share of a producing State
and hold the allocable share in escrow if the Secretary
determines that the producing State is making a good
faith effort to develop and submit, or update, a plan in
accordance with subsection (c).
‘‘(c) COASTAL IMPACT ASSISTANCE PLAN.—
‘‘(1) SUBMISSION OF STATE PLANS.—
‘‘(A) IN GENERAL.—Not later than July 1, 2008, the
Governor of a producing State shall submit to the Secretary
a coastal impact assistance plan.
‘‘(B) PUBLIC PARTICIPATION.—In carrying out subparagraph (A), the Governor shall solicit local input and provide
for public participation in the development of the plan.
‘‘(2) APPROVAL.—
‘‘(A) IN GENERAL.—The Secretary shall approve a plan
of a producing State submitted under paragraph (1) before
disbursing any amount to the producing State, or to a

Deadline.

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coastal political subdivision located in the producing State,
under this section.
‘‘(B) COMPONENTS.—The Secretary shall approve a plan
submitted under paragraph (1) if—
‘‘(i) the Secretary determines that the plan is consistent with the uses described in subsection (d); and
‘‘(ii) the plan contains—
‘‘(I) the name of the State agency that will
have the authority to represent and act on behalf
of the producing State in dealing with the Secretary for purposes of this section;
‘‘(II) a program for the implementation of the
plan that describes how the amounts provided
under this section to the producing State will be
used;
‘‘(III) for each coastal political subdivision that
receives an amount under this section—
‘‘(aa) the name of a contact person; and
‘‘(bb) a description of how the coastal political subdivision will use amounts provided
under this section;
‘‘(IV) a certification by the Governor that
ample opportunity has been provided for public
participation in the development and revision of
the plan; and
‘‘(V) a description of measures that will be
taken to determine the availability of assistance
from other relevant Federal resources and programs.
‘‘(3) AMENDMENT.—Any amendment to a plan submitted
under paragraph (1) shall be—
‘‘(A) developed in accordance with this subsection; and
‘‘(B) submitted to the Secretary for approval or disapproval under paragraph (4).
‘‘(4) PROCEDURE.—Not later than 90 days after the date
on which a plan or amendment to a plan is submitted under
paragraph (1) or (3), the Secretary shall approve or disapprove
the plan or amendment.
‘‘(d) AUTHORIZED USES.—
‘‘(1) IN GENERAL.—A producing State or coastal political
subdivision shall use all amounts received under this section,
including any amount deposited in a trust fund that is administered by the State or coastal political subdivision and dedicated
to uses consistent with this section, in accordance with all
applicable Federal and State laws, only for one or more of
the following purposes:
‘‘(A) Projects and activities for the conservation, protection, or restoration of coastal areas, including wetland.
‘‘(B) Mitigation of damage to fish, wildlife, or natural
resources.
‘‘(C) Planning assistance and the administrative costs
of complying with this section.
‘‘(D) Implementation of a federally-approved marine,
coastal, or comprehensive conservation management plan.
‘‘(E) Mitigation of the impact of outer Continental Shelf
activities through funding of onshore infrastructure projects
and public service needs.

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Certification.

Deadline.

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‘‘(2) COMPLIANCE WITH AUTHORIZED USES.—If the Secretary
determines that any expenditure made by a producing State
or coastal political subdivision is not consistent with this subsection, the Secretary shall not disburse any additional amount
under this section to the producing State or the coastal political
subdivision until such time as all amounts obligated for
unauthorized uses have been repaid or reobligated for authorized uses.
‘‘(3) LIMITATION.—Not more than 23 percent of amounts
received by a producing State or coastal political subdivision
for any 1 fiscal year shall be used for the purposes described
in subparagraphs (C) and (E) of paragraph (1).’’.

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.
Contracts.

(a) IN GENERAL.—The Secretary shall enter into an arrangement with the National Academy of Sciences under which the
National Academy of Sciences shall conduct a study of the shortterm and long-term availability of skilled workers to meet the
energy and mineral security requirements of the United States.
(b) INCLUSIONS.—The study shall include an analysis of—
(1) the need for and availability of workers for the oil,
gas, and mineral industries;
(2) the availability of skilled labor at both entry level
and more senior levels; and
(3) recommendations for future actions needed to meet
future labor requirements.
(c) REPORT.—Not later than 2 years after the date of enactment
of this Act, the Secretary shall submit to Congress a report that
describes the results of the study.

42 USC 15941.

SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.

No Federal or State permit or lease shall be issued for new
oil and gas slant, directional, or offshore drilling in or under one
or more of the Great Lakes.
Deadline.
42 USC 13368
note.

SEC. 387. FEDERAL COALBED METHANE REGULATION.

Any State currently on the list of Affected States established
under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C.
13368(b)) shall be removed from the list if, not later than 3 years
after the date of enactment of this Act, the State takes, or prior
to the date of enactment has taken, any of the actions required
for removal from the list under such section 1339(b).
SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

(a) AMENDMENT TO OUTER CONTINENTAL SHELF LANDS ACT.—
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C.
1337) is amended by adding at the end the following:
‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF-WAY FOR ENERGY AND
RELATED PURPOSES.—
‘‘(1) IN GENERAL.—The Secretary, in consultation with the
Secretary of the Department in which the Coast Guard is
operating and other relevant departments and agencies of the
Federal Government, may grant a lease, easement, or rightof-way on the outer Continental Shelf for activities not otherwise authorized in this Act, the Deepwater Port Act of 1974
(33 U.S.C. 1501 et seq.), the Ocean Thermal Energy Conversion

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Act of 1980 (42 U.S.C. 9101 et seq.), or other applicable law,
if those activities—
‘‘(A) support exploration, development, production, or
storage of oil or natural gas, except that a lease, easement,
or right-of-way shall not be granted in an area in which
oil and gas preleasing, leasing, and related activities are
prohibited by a moratorium;
‘‘(B) support transportation of oil or natural gas,
excluding shipping activities;
‘‘(C) produce or support production, transportation, or
transmission of energy from sources other than oil and
gas; or
‘‘(D) use, for energy-related purposes or for other
authorized marine-related purposes, facilities currently or
previously used for activities authorized under this Act,
except that any oil and gas energy-related uses shall not
be authorized in areas in which oil and gas preleasing,
leasing, and related activities are prohibited by a moratorium.
‘‘(2) PAYMENTS AND REVENUES.—(A) The Secretary shall
establish royalties, fees, rentals, bonuses, or other payments
to ensure a fair return to the United States for any lease,
easement, or right-of-way granted under this subsection.
‘‘(B) The Secretary shall provide for the payment of 27
percent of the revenues received by the Federal Government
as a result of payments under this section from projects that
are located wholly or partially within the area extending three
nautical miles seaward of State submerged lands. Payments
shall be made based on a formula established by the Secretary
by rulemaking no later than 180 days after the date of enactment of this section that provides for equitable distribution,
based on proximity to the project, among coastal states that
have a coastline that is located within 15 miles of the
geographic center of the project.
‘‘(3) COMPETITIVE OR NONCOMPETITIVE BASIS.—Except with
respect to projects that meet the criteria established under
section 388(d) of the Energy Policy Act of 2005, the Secretary
shall issue a lease, easement, or right-of-way under paragraph
(1) on a competitive basis unless the Secretary determines
after public notice of a proposed lease, easement, or rightof-way that there is no competitive interest.
‘‘(4) REQUIREMENTS.—The Secretary shall ensure that any
activity under this subsection is carried out in a manner that
provides for—
‘‘(A) safety;
‘‘(B) protection of the environment;
‘‘(C) prevention of waste;
‘‘(D) conservation of the natural resources of the outer
Continental Shelf;
‘‘(E) coordination with relevant Federal agencies;
‘‘(F) protection of national security interests of the
United States;
‘‘(G) protection of correlative rights in the outer Continental Shelf;
‘‘(H) a fair return to the United States for any lease,
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Regulations.
Deadline.

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‘‘(I) prevention of interference with reasonable uses
(as determined by the Secretary) of the exclusive economic
zone, the high seas, and the territorial seas;
‘‘(J) consideration of—
‘‘(i) the location of, and any schedule relating to,
a lease, easement, or right-of-way for an area of the
outer Continental Shelf; and
‘‘(ii) any other use of the sea or seabed, including
use for a fishery, a sealane, a potential site of a deepwater port, or navigation;
‘‘(K) public notice and comment on any proposal submitted for a lease, easement, or right-of-way under this
subsection; and
‘‘(L) oversight, inspection, research, monitoring, and
enforcement relating to a lease, easement, or right-of-way
under this subsection.
‘‘(5) LEASE DURATION, SUSPENSION, AND CANCELLATION.—
The Secretary shall provide for the duration, issuance, transfer,
renewal, suspension, and cancellation of a lease, easement,
or right-of-way under this subsection.
‘‘(6) SECURITY.—The Secretary shall require the holder of
a lease, easement, or right-of-way granted under this subsection
to—
‘‘(A) furnish a surety bond or other form of security,
as prescribed by the Secretary;
‘‘(B) comply with such other requirements as the Secretary considers necessary to protect the interests of the
public and the United States; and
‘‘(C) provide for the restoration of the lease, easement,
or right-of-way.
‘‘(7) COORDINATION AND CONSULTATION WITH AFFECTED
STATE AND LOCAL GOVERNMENTS.—The Secretary shall provide
for coordination and consultation with the Governor of any
State or the executive of any local government that may be
affected by a lease, easement, or right-of-way under this subsection.
‘‘(8) REGULATIONS.—Not later than 270 days after the date
of enactment of the Energy Policy Act of 2005, the Secretary,
in consultation with the Secretary of Defense, the Secretary
of the Department in which the Coast Guard is operating,
the Secretary of Commerce, heads of other relevant departments and agencies of the Federal Government, and the Governor of any affected State, shall issue any necessary regulations to carry out this subsection.
‘‘(9) EFFECT OF SUBSECTION.—Nothing in this subsection
displaces, supersedes, limits, or modifies the jurisdiction,
responsibility, or authority of any Federal or State agency
under any other Federal law.
‘‘(10) APPLICABILITY.—This subsection does not apply to
any area on the outer Continental Shelf within the exterior
boundaries of any unit of the National Park System, National
Wildlife Refuge System, or National Marine Sanctuary System,
or any National Monument.’’.
(b) COORDINATED OCS MAPPING INITIATIVE.—
(1) IN GENERAL.—The Secretary of the Interior, in cooperation with the Secretary of Commerce, the Commandant of the
Coast Guard, and the Secretary of Defense, shall establish

Deadline.

43 USC 1337
note.

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an interagency comprehensive digital mapping initiative for
the outer Continental Shelf to assist in decisionmaking relating
to the siting of activities under subsection (p) of section 8
of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
(as added by subsection (a)).
(2) USE OF DATA.—The mapping initiative shall use, and
develop procedures for accessing, data collected before the date
on which the mapping initiative is established, to the maximum
extent practicable.
(3) INCLUSIONS.—Mapping carried out under the mapping
initiative shall include an indication of the locations on the
outer Continental Shelf of—
(A) Federally-permitted activities;
(B) obstructions to navigation;
(C) submerged cultural resources;
(D) undersea cables;
(E) offshore aquaculture projects; and
(F) any area designated for the purpose of safety,
national security, environmental protection, or conservation
and management of living marine resources.
(c) CONFORMING AMENDMENT.—Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by striking
the section heading and inserting the following: ‘‘LEASES, EASEMENTS,
AND
RIGHTS-OF-WAY ON THE OUTER CONTINENTAL
SHELF.—’’.
(d) SAVINGS PROVISION.—Nothing in the amendment made by
subsection (a) requires the resubmittal of any document that was
previously submitted or the reauthorization of any action that was
previously authorized with respect to a project for which, before
the date of enactment of this Act—
(1) an offshore test facility has been constructed; or
(2) a request for a proposal has been issued by a public
authority.
(e) STATE CLAIMS TO JURISDICTION OVER SUBMERGED LANDS.—
Nothing in this section shall be construed to alter, limit, or modify
any claim of any State to any jurisdiction over, or any right,
title, or interest in, any submerged lands.

43 USC 1337
note.

43 USC 1337
note.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et
seq.) is amended—
(1) in section 5001(i), by striking ‘‘September 30, 2012’’
and inserting ‘‘1 year after the date on which the Secretary,
in consultation with the Secretary of the Interior, determines
that oil and gas exploration, development, and production in
the State of Alaska have ceased’’; and
(2) in section 5006(c), by striking ‘‘October 1, 2012’’ and
inserting ‘‘1 year after the date on which the Secretary, in
consultation with the Secretary of the Interior, determines that
oil and gas exploration, development, and production in the
State of Alaska have ceased,’’.
SEC. 390. NEPA REVIEW.

33 USC 2731.

33 USC 2736.

42 USC 15942.

(a) NEPA REVIEW.—Action by the Secretary of the Interior
in managing the public lands, or the Secretary of Agriculture in
managing National Forest System Lands, with respect to any of
the activities described in subsection (b) shall be subject to a rebuttable presumption that the use of a categorical exclusion under

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the National Environmental Policy Act of 1969 (NEPA) would apply
if the activity is conducted pursuant to the Mineral Leasing Act
for the purpose of exploration or development of oil or gas.
(b) ACTIVITIES DESCRIBED.—The activities referred to in subsection (a) are the following:
(1) Individual surface disturbances of less than 5 acres
so long as the total surface disturbance on the lease is not
greater than 150 acres and site-specific analysis in a document
prepared pursuant to NEPA has been previously completed.
(2) Drilling an oil or gas well at a location or well pad
site at which drilling has occurred previously within 5 years
prior to the date of spudding the well.
(3) Drilling an oil or gas well within a developed field
for which an approved land use plan or any environmental
document prepared pursuant to NEPA analyzed such drilling
as a reasonably foreseeable activity, so long as such plan or
document was approved within 5 years prior to the date of
spudding the well.
(4) Placement of a pipeline in an approved right-of-way
corridor, so long as the corridor was approved within 5 years
prior to the date of placement of the pipeline.
(5) Maintenance of a minor activity, other than any
construction or major renovation or a building or facility.

Subtitle H—Refinery Revitalization
42 USC 15951.

SEC. 391. FINDINGS AND DEFINITIONS.

(a) FINDINGS.—Congress finds that—
(1) it serves the national interest to increase petroleum
refining capacity for gasoline, heating oil, diesel fuel, jet fuel,
kerosene, and petrochemical feedstocks wherever located within
the United States, to bring more supply to the markets for
the use of the American people;
(2) United States demand for refined petroleum products
currently exceeds the country’s petroleum refining capacity to
produce such products;
(3) this excess demand has been met with increased
imports;
(4) due to lack of capacity, refined petroleum product
imports are expected to grow from 7.9 percent to 10.7 percent
of total refined product by 2025;
(5) refiners are still subject to significant environmental
and other regulations and face several new requirements under
the Clean Air Act (42 U.S.C. 7401 et seq.) over the next decade;
and
(6) better coordination of Federal and State regulatory
reviews may help facilitate siting and construction of new refineries to meet the demand in the United States for refined
products.
(b) DEFINITIONS.—In this subtitle:
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the Environmental Protection Agency.
(2) STATE.—The term ‘‘State’’ means—
(A) a State;
(B) the Commonwealth of Puerto Rico; and

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(C) any other territory or possession of the United
States.
SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.

42 USC 15952.

(a) IN GENERAL.—At the request of the Governor of a State,
the Administrator may enter into a refinery permitting cooperative
agreement with the State, under which each party to the agreement
identifies steps, including timelines, that it will take to streamline
the consideration of Federal and State environmental permits for
a new refinery.
(b) AUTHORITY UNDER AGREEMENT.—The Administrator shall
be authorized to—
(1) accept from a refiner a consolidated application for
all permits required from the Environmental Protection Agency,
to the extent consistent with other applicable law;
(2) enter into memoranda of agreement with other Federal
agencies to coordinate consideration of refinery applications
and permits among Federal agencies; and
(3) enter into memoranda of agreement with a State, under
which Federal and State review of refinery permit applications
will be coordinated and concurrently considered, to the extent
practicable.
(c) STATE ASSISTANCE.—The Administrator is authorized to provide financial assistance to State governments to facilitate the
hiring of additional personnel with expertise in fields relevant to
consideration of refinery permits.
(d) OTHER ASSISTANCE.—The Administrator is authorized to
provide technical, legal, or other assistance to State governments
to facilitate their review of applications to build new refineries.

TITLE IV—COAL
Subtitle A—Clean Coal Power Initiative
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

42 USC 15961.

(a) CLEAN COAL POWER INITIATIVE.—There are authorized to
be appropriated to the Secretary to carry out the activities authorized by this subtitle $200,000,000 for each of fiscal years 2006
through 2014, to remain available until expended.
(b) REPORT.—The Secretary shall submit to Congress the report
required by this subsection not later than March 31, 2007. The
report shall include, with respect to subsection (a), a plan
containing—
(1) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate funding
levels for that program;
(2) a detailed description of how proposals will be solicited
and evaluated, including a list of all activities expected to
be undertaken;
(3) a detailed list of technical milestones for each coal
and related technology that will be pursued; and
(4) a detailed description of how the program will avoid
problems enumerated in Government Accountability Office

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reports on the Clean Coal Technology Program, including problems that have resulted in unspent funds and projects that
failed either financially or scientifically.

42 USC 15962.

SEC. 402. PROJECT CRITERIA.

(a) IN GENERAL.—To be eligible to receive assistance under
this subtitle, a project shall advance efficiency, environmental
performance, and cost competitiveness well beyond the level of
technologies that are in commercial service or have been demonstrated on a scale that the Secretary determines is sufficient
to demonstrate that commercial service is viable as of the date
of enactment of this Act.
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.—
(1) GASIFICATION PROJECTS.—
(A) IN GENERAL.—In allocating the funds made available under section 401(a), the Secretary shall ensure that
at least 70 percent of the funds are used only to fund
projects on coal-based gasification technologies, including—
(i) gasification combined cycle;
(ii) gasification fuel cells and turbine combined
cycle;
(iii) gasification coproduction;
(iv) hybrid gasification and combustion; and
(v) other advanced coal based technologies capable
of producing a concentrated stream of carbon dioxide.
(B) TECHNICAL MILESTONES.—
(i) PERIODIC DETERMINATION.—
(I) IN GENERAL.—The Secretary shall periodically set technical milestones specifying the emission and thermal efficiency levels that coal gasification projects under this subtitle shall be
designed, and reasonably expected, to achieve.
(II) PRESCRIPTIVE MILESTONES.—The technical
milestones shall become more prescriptive during
the period of the clean coal power initiative.
(ii) 2020 GOALS.—The Secretary shall establish the
periodic milestones so as to achieve by the year 2020
coal gasification projects able—
(I) to remove at least 99 percent of sulfur
dioxide;
(II) to emit not more than .05 lbs of NOx
per million Btu;
(III) to achieve at least 95 percent reductions
in mercury emissions; and
(IV) to achieve a thermal efficiency of at
least—
(aa) 50 percent for coal of more than 9,000
Btu;
(bb) 48 percent for coal of 7,000 to 9,000
Btu; and
(cc) 46 percent for coal of less than 7,000
Btu.
(2) OTHER PROJECTS.—
(A) ALLOCATION OF FUNDS.—The Secretary shall ensure
that up to 30 percent of the funds made available under
section 401(a) are used to fund projects other than those
described in paragraph (1).

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(B) TECHNICAL MILESTONES.—
(i) PERIODIC DETERMINATION.—
(I) IN GENERAL.—The Secretary shall periodically establish technical milestones specifying the
emission and thermal efficiency levels that projects
funded under this paragraph shall be designed,
and reasonably expected, to achieve.
(II) PRESCRIPTIVE MILESTONES.—The technical
milestones shall become more prescriptive during
the period of the clean coal power initiative.
(ii) 2020 GOALS.—The Secretary shall set the periodic milestones so as to achieve by the year 2020
projects able—
(I) to remove at least 97 percent of sulfur
dioxide;
(II) to emit no more than .08 lbs of NOx per
million Btu;
(III) to achieve at least 90 percent reductions
in mercury emissions; and
(IV) to achieve a thermal efficiency of at
least—
(aa) 43 percent for coal of more than 9,000
Btu;
(bb) 41 percent for coal of 7,000 to 9,000
Btu; and
(cc) 39 percent for coal of less than 7,000
Btu.
(3) CONSULTATION.—Before setting the technical milestones
under paragraphs (1)(B) and (2)(B), the Secretary shall consult
with—
(A) the Administrator of the Environmental Protection
Agency; and
(B) interested entities, including—
(i) coal producers;
(ii) industries using coal;
(iii) organizations that promote coal or advanced
coal technologies;
(iv) environmental organizations;
(v) organizations representing workers; and
(vi) organizations representing consumers.
(4) EXISTING UNITS.—In the case of projects at units in
existence on the date of enactment of this Act, in lieu of
the thermal efficiency requirements described in paragraphs
(1)(B)(ii)(IV) and (2)(B)(ii)(IV), the milestones shall be designed
to achieve an overall thermal design efficiency improvement,
compared to the efficiency of the unit as operated, of not less
than—
(A) 7 percent for coal of more than 9,000 Btu;
(B) 6 percent for coal of 7,000 to 9,000 Btu; or
(C) 4 percent for coal of less than 7,000 Btu.
(5) ADMINISTRATION.—
(A) ELEVATION OF SITE.—In evaluating project proposals to achieve thermal efficiency levels established under
paragraphs (1)(B)(i) and (2)(B)(i) and in determining
progress towards thermal efficiency milestones under paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4), the Secretary

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shall take into account and make adjustments for the elevation of the site at which a project is proposed to be
constructed.
(B) APPLICABILITY OF MILESTONES.—In applying the
thermal
efficiency
milestones
under
paragraphs
(1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4) to projects that separate
and capture at least 50 percent of the potential emissions
of carbon dioxide by a facility, the energy used for separation and capture of carbon dioxide shall not be counted
in calculating the thermal efficiency.
(C) PERMITTED USES.—In carrying out this section, the
Secretary may give priority to projects that include, as
part of the project—
(i) the separation or capture of carbon dioxide;
or
(ii) the reduction of the demand for natural gas
if deployed.
(c) FINANCIAL CRITERIA.—The Secretary shall not provide financial assistance under this subtitle for a project unless the recipient
documents to the satisfaction of the Secretary that—
(1) the recipient is financially responsible;
(2) the recipient will provide sufficient information to the
Secretary to enable the Secretary to ensure that the funds
are spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated
or applied, as evidenced by statements of interest in writing
from potential purchasers of the technology.
(d) FINANCIAL ASSISTANCE.—The Secretary shall provide financial assistance to projects that, as determined by the Secretary—
(1) meet the requirements of subsections (a), (b), and (c);
and
(2) are likely—
(A) to achieve overall cost reductions in the use of
coal to generate useful forms of energy or chemical feedstocks;
(B) to improve the competitiveness of coal among various forms of energy in order to maintain a diversity of
fuel choices in the United States to meet electricity generation requirements; and
(C) to demonstrate methods and equipment that are
applicable to 25 percent of the electricity generating facilities, using various types of coal, that use coal as the primary feedstock as of the date of enactment of this Act.
(e) COST-SHARING.—In carrying out this subtitle, the Secretary
shall require cost sharing in accordance with section 988.
(f) SCHEDULED COMPLETION OF SELECTED PROJECTS.—
(1) IN GENERAL.—In selecting a project for financial assistance under this section, the Secretary shall establish a reasonable period of time during which the owner or operator of
the project shall complete the construction or demonstration
phase of the project, as the Secretary determines to be appropriate.
(2) CONDITION OF FINANCIAL ASSISTANCE.—The Secretary
shall require as a condition of receipt of any financial assistance
under this subtitle that the recipient of the assistance enter

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into an agreement with the Secretary not to request an extension of the time period established for the project by the Secretary under paragraph (1).
(3) EXTENSION OF TIME PERIOD.—
(A) IN GENERAL.—Subject to subparagraph (B), the Secretary may extend the time period established under paragraph (1) if the Secretary determines, in the sole discretion
of the Secretary, that the owner or operator of the project
cannot complete the construction or demonstration phase
of the project within the time period due to circumstances
beyond the control of the owner or operator.
(B) LIMITATION.—The Secretary shall not extend a time
period under subparagraph (A) by more than 4 years.
(g) FEE TITLE.—The Secretary may vest fee title or other property interests acquired under cost-share clean coal power initiative
agreements under this subtitle in any entity, including the United
States.
(h) DATA PROTECTION.—For a period not exceeding 5 years
after completion of the operations phase of a cooperative agreement,
the Secretary may provide appropriate protections (including
exemptions from subchapter II of chapter 5 of title 5, United States
Code) against the dissemination of information that—
(1) results from demonstration activities carried out under
the clean coal power initiative program; and
(2) would be a trade secret or commercial or financial
information that is privileged or confidential if the information
had been obtained from and first produced by a non-Federal
party participating in a clean coal power initiative project.
(i) APPLICABILITY.—No technology, or level of emission reduction, solely by reason of the use of the technology, or the achievement of the emission reduction, by 1 or more facilities receiving
assistance under this Act, shall be considered to be—
(1) adequately demonstrated for purposes of section 111
of the Clean Air Act (42 U.S.C. 7411);
(2) achievable for purposes of section 169 of that Act (42
U.S.C. 7479); or
(3) achievable in practice for purposes of section 171 of
that Act (42 U.S.C. 7501).
SEC. 403. REPORT.

42 USC 15963.

Not later than 1 year after the date of enactment of this
Act, and once every 2 years thereafter through 2014, the Secretary,
in consultation with other appropriate Federal agencies, shall
submit to Congress a report describing—
(1) the technical milestones set forth in section 402 and
how those milestones ensure progress toward meeting the
requirements of subsections (b)(1)(B) and (b)(2) of section 402;
and
(2) the status of projects funded under this subtitle.
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

42 USC 15964.

(a) IN GENERAL.—As part of the clean coal power initiative,
the Secretary shall award competitive, merit-based grants to institutions of higher education for the establishment of centers of excellence for energy systems of the future.
(b) BASIS FOR GRANTS.—The Secretary shall award grants
under this section to institutions of higher education that show
the greatest potential for advancing new clean coal technologies.

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Subtitle B—Clean Power Projects
42 USC 15971.

SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

(a) IN GENERAL.—Subject to the availability of appropriations,
the Secretary may provide loan guarantees for a project to produce
energy from coal of less than 7,000 Btu/lb. using appropriate
advanced integrated gasification combined cycle technology,
including repowering of existing facilities, that—
(1) is combined with wind and other renewable sources;
(2) minimizes and offers the potential to sequester carbon
dioxide emissions; and
(3) provides a ready source of hydrogen for near-site fuel
cell demonstrations.
(b) REQUIREMENTS.—The facility—
(1) may be built in stages;
(2) shall have a combined output of at least 200 megawatts
at successively more competitive rates; and
(3) shall be located in the Upper Great Plains.
(c) TECHNICAL CRITERIA.—Technical criteria described in section
402(b) shall apply to the facility.
(d) INVESTMENT TAX CREDITS.—
(1) IN GENERAL.—The loan guarantees provided under this
section do not preclude the facility from receiving an allocation
for investment tax credits under section 48A of the Internal
Revenue Code of 1986.
(2) OTHER FUNDING.—Use of the investment tax credit
described in paragraph (1) does not prohibit the use of other
clean coal program funding.

Applicability.

42 USC 15972.

SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY
FACILITY IN SERVICE.

(a) DEFINITIONS.—In this section:
(1) BORROWER.—The term ‘‘borrower’’ means the owner
of the clean coal technology plant.
(2) CLEAN COAL TECHNOLOGY PLANT.—The term ‘‘clean coal
technology plant’’ means the plant located near Healy, Alaska,
constructed under Department cooperative agreement number
DE–FC–22–91PC90544.
(3) COST OF A DIRECT LOAN.—The term ‘‘cost of a direct
loan’’ has the meaning given the term in section 502(5)(B)
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).
(b) AUTHORIZATION.—Subject to subsection (c), the Secretary
shall use amounts made available under subsection (e) to provide
the cost of a direct loan to the borrower for purposes of placing
the clean coal technology plant into reliable operation for the
generation of electricity.
(c) REQUIREMENTS.—
(1) MAXIMUM LOAN AMOUNT.—The amount of the direct
loan provided under subsection (b) shall not exceed $80,000,000.
(2) DETERMINATIONS BY SECRETARY.—Before providing the
direct loan to the borrower under subsection (b), the Secretary
shall determine that—
(A) the plan of the borrower for placing the clean
coal technology plant in reliable operation has a reasonable
prospect of success;

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(B) the amount of the loan (when combined with
amounts available to the borrower from other sources) will
be sufficient to carry out the project; and
(C) there is a reasonable prospect that the borrower
will repay the principal and interest on the loan.
(3) INTEREST; TERM.—The direct loan provided under subsection (b) shall bear interest at a rate and for a term that
the Secretary determines appropriate, after consultation with
the Secretary of the Treasury, taking into account the needs
and capacities of the borrower and the prevailing rate of
interest for similar loans made by public and private lenders.
(4) ADDITIONAL TERMS AND CONDITIONS.—The Secretary
may require any other terms and conditions that the Secretary
determines to be appropriate.
(d) USE OF PAYMENTS.—The Secretary shall retain any payments of principal and interest on the direct loan provided under
subsection (b) to support energy research and development activities, to remain available until expended, subject to any other conditions in an applicable appropriations Act.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to provide the
cost of a direct loan under subsection (b).
SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

42 USC 15973.

(a) IN GENERAL.—Subject to the availability of appropriations,
the Secretary shall carry out a project to demonstrate production
of energy from coal mined in the western United States using
integrated gasification combined cycle technology (referred to in
this section as the ‘‘demonstration project’’).
(b) COMPONENTS.—The demonstration project—
(1) may include repowering of existing facilities;
(2) shall be designed to demonstrate the ability to use
coal with an energy content of not more than 9,000 Btu/lb.;
and
(3) shall be capable of removing and sequestering carbon
dioxide emissions.
(c) ALL TYPES OF WESTERN COALS.—Notwithstanding the foregoing, and to the extent economically feasible, the demonstration
project shall also be designed to demonstrate the ability to use
a variety of types of coal (including subbituminous and bituminous
coal with an energy content of up to 13,000 Btu/lb.) mined in
the western United States.
(d) LOCATION.—The demonstration project shall be located in
a western State at an altitude of greater than 4,000 feet above
sea level.
(e) COST SHARING.—The Federal share of the cost of the demonstration project shall be determined in accordance with section
988.
(f) LOAN GUARANTEES.—Notwithstanding title XIV, the demonstration project shall not be eligible for Federal loan guarantees.
SEC. 414. COAL GASIFICATION.

42 USC 15974.

The Secretary is authorized to provide loan guarantees for
a project to produce energy from a plant using integrated gasification combined cycle technology of at least 400 megawatts in
capacity that produces power at competitive rates in deregulated

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energy generation markets and that does not receive any subsidy
(direct or indirect) from ratepayers.
42 USC 15975.

SEC. 415. PETROLEUM COKE GASIFICATION.

The Secretary is authorized to provide loan guarantees for
at least 5 petroleum coke gasification projects.
42 USC 15976.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

The Secretary shall use $5,000,000 from amounts appropriated
to initiate, through the Chicago Operations Office, a project to
demonstrate the viability of high-energy electron scrubbing technology on commercial-scale electrical generation using high-sulfur
coal.
42 USC 15977.

Deadlines.

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SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM
ILLINOIS BASIN COAL.

(a) IN GENERAL.—The Secretary shall carry out a program
to evaluate the commercial and technical viability of advanced
technologies for the production of Fischer-Tropsch transportation
fuels, and other transportation fuels, manufactured from Illinois
basin coal, including the capital modification of existing facilities
and the construction of testing facilities under subsection (b).
(b) FACILITIES.—For the purpose of evaluating the commercial
and technical viability of different processes for producing FischerTropsch transportation fuels, and other transportation fuels, from
Illinois basin coal, the Secretary shall support the use and capital
modification of existing facilities and the construction of new facilities at—
(1) Southern Illinois University Coal Research Center;
(2) University of Kentucky Center for Applied Energy
Research; and
(3) Energy Center at Purdue University.
(c) GASIFICATION PRODUCTS TEST CENTER.—In conjunction with
the activities described in subsections (a) and (b), the Secretary
shall construct a test center to evaluate and confirm liquid and
gas products from syngas catalysis in order that the system has
an output of at least 500 gallons of Fischer-Tropsch transportation
fuel per day in a 24-hour operation.
(d) MILESTONES.—
(1) SELECTION OF PROCESSES.—Not later than 180 days
after the date of enactment of this Act, the Secretary shall
select processes for evaluating the commercial and technical
viability of different processes of producing Fischer-Tropsch
transportation fuels, and other transportation fuels, from
Illinois basin coal.
(2) AGREEMENTS.—Not later than 1 year after the date
of enactment of this Act, the Secretary shall offer to enter
into agreements—
(A) to carry out the activities described in this section,
at the facilities described in subsection (b); and
(B) for the capital modifications or construction of the
facilities at the locations described in subsection (b).
(3) EVALUATIONS.—Not later than 3 years after the date
of enactment of the Act, the Secretary shall begin, at the
facilities described in subsection (b), evaluation of the technical
and commercial viability of different processes of producing
Fischer-Tropsch transportation fuels, and other transportation
fuels, from Illinois basin coal.

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(4) CONSTRUCTION OF FACILITIES.—
(A) IN GENERAL.—The Secretary shall construct the
facilities described in subsection (b) at the lowest cost practicable.
(B) GRANTS OR AGREEMENTS.—The Secretary may
make grants or enter into agreements or contracts with
the institutions of higher education described in subsection
(b).
(e) COST SHARING.—The cost of making grants under this section shall be shared in accordance with section 988.
(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $85,000,000 for the
period of fiscal years 2006 through 2010.

Subtitle C—Coal and Related Programs
SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

(a) AMENDMENT.—The Energy Policy Act of 1992 (42 U.S.C.
13201 et seq.) is amended by adding at the end the following:

‘‘TITLE XXXI—CLEAN AIR COAL
PROGRAM
‘‘SEC. 3101. PURPOSES.

42 USC 13571.

‘‘The purposes of this title are to—
‘‘(1) promote national energy policy and energy security,
diversity, and economic competitiveness benefits that result
from the increased use of coal;
‘‘(2) mitigate financial risks, reduce the cost of clean coal
generation, and increase the marketplace acceptance of clean
coal generation and pollution control equipment and processes;
and
‘‘(3) facilitate the environmental performance of clean coal
generation.
‘‘SEC. 3102. AUTHORIZATION OF PROGRAM.

42 USC 13572.

‘‘(a) IN GENERAL.—The Secretary shall carry out a program
of financial assistance to—
‘‘(1) facilitate the production and generation of coal-based
power, through the deployment of clean coal electric generating
equipment and processes that, compared to equipment or processes that are in operation on a full scale—
‘‘(A) improve—
‘‘(i) energy efficiency; or
‘‘(ii) environmental performance consistent with
relevant Federal and State clean air requirements,
including those promulgated under the Clean Air Act
(42 U.S.C. 7401 et seq.); and
‘‘(B) are not yet cost competitive; and
‘‘(2) facilitate the utilization of existing coal-based electricity generation plants through projects that—
‘‘(A) deploy advanced air pollution control equipment
and processes; and
‘‘(B) are designed to voluntarily enhance environmental
performance above current applicable obligations under the

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Clean Air Act and State implementation efforts pursuant
to such Act.
‘‘(b) FINANCIAL CRITERIA.—As determined by the Secretary for
a particular project, financial assistance under this title shall be
in the form of—
‘‘(1) cost-sharing of an appropriate percentage of the total
project cost, not to exceed 50 percent as calculated under section
988 of the Energy Policy Act of 2005; or
‘‘(2) financial assistance, including grants, cooperative
agreements, or loans as authorized under this Act or other
statutory authority of the Secretary.
42 USC 13573.

‘‘SEC. 3103. GENERATION PROJECTS.

‘‘(a) ELIGIBLE PROJECTS.—Projects supported under section
3102(a)(1) may include—
‘‘(1) equipment or processes previously supported by a
Department of Energy program;
‘‘(2) advanced combustion equipment and processes that
the Secretary determines will be cost-effective and could
substantially contribute to meeting environmental or energy
needs, including gasification, gasification fuel cells, gasification
coproduction, oxidation combustion techniques, ultra-supercritical boilers, and chemical looping; and
‘‘(3) hybrid gasification/combustion systems, including systems integrating fuel cells with gasification or combustion units.
‘‘(b) CRITERIA.—The Secretary shall establish criteria for the
selection of generation projects under section 3102(a)(1). The Secretary may modify the criteria as appropriate to reflect improvements in equipment, except that the criteria shall not be modified
to be less stringent. The selection criteria shall include—
‘‘(1) prioritization of projects whose installation is likely
to result in significant air quality improvements in nonattainment air quality areas;
‘‘(2) prioritization of projects whose installation is likely
to result in lower emission rates of pollution;
‘‘(3) prioritization of projects that result in the repowering
or replacement of older, less efficient units;
‘‘(4) documented broad interest in the procurement of the
equipment and utilization of the processes used in the projects
by owners or operators of facilities for electricity generation;
‘‘(5) equipment and processes beginning in 2006 through
2011 that are projected to achieve a thermal efficiency of—
‘‘(A) 40 percent for coal of more than 9,000 Btu per
pound based on higher heating values;
‘‘(B) 38 percent for coal of 7,000 to 9,000 Btu per
pound passed on higher heating values; and
‘‘(C) 36 percent for coal of less than 7,000 Btu per
pound based on higher heating values;
except that energy used for coproduction or cogeneration shall
not be counted in calculating the thermal efficiency under this
paragraph; and
‘‘(6) equipment and processes beginning in 2012 and 2013
that are projected to achieve a thermal efficiency of—
‘‘(A) 45 percent for coal of more than 9,000 Btu per
pound based on higher heating values;
‘‘(B) 44 percent for coal of 7,000 to 9,000 Btu per
pound passed on higher heating values; and

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‘‘(C) 40 percent for coal of less than 7,000 Btu per
pound based on higher heating values;
except that energy used for coproduction or cogeneration shall
not be counted in calculating the thermal efficiency under this
paragraph.
‘‘(c) PROGRAM BALANCE AND PRIORITY.—In carrying out the
program under section 3102(a)(1), the Secretary shall ensure, to
the extent practicable, that—
‘‘(1) between 25 percent and 75 percent of the projects
supported are for the sole purpose of electrical generation;
and
‘‘(2) priority is given to projects that use electrical generation equipment and processes that have been developed and
demonstrated and applied in actual production of electricity,
but are not yet cost-competitive, and that achieve greater efficiency and environmental performance.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary to carry out section 3102(a)(1)—
‘‘(1) $250,000,000 for fiscal year 2007;
‘‘(2) $350,000,000 for fiscal year 2008;
‘‘(3) $400,000,000 for each of fiscal years 2009 through
2012; and
‘‘(4) $300,000,000 for fiscal year 2013.
‘‘(e) APPLICABILITY.—No technology, or level of emission reduction, shall be treated as adequately demonstrated for purpose of
section 111 of the Clean Air Act (42 U.S.C. 7411), achievable for
purposes of section 169 of that Act (42 U.S.C. 7479), or achievable
in practice for purposes of section 171 of that Act (42 U.S.C. 7501)
solely by reason of the use of such technology, or the achievement
of such emission reduction, by one or more facilities receiving assistance under section 3102(a)(1).
‘‘SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.

42 USC 13574.

‘‘(a) ELIGIBLE PROJECTS.—Projects supported under section
3102(a)(2) shall—
‘‘(1) utilize technologies that meet relevant Federal and
State clean air requirements applicable to the unit or facility,
including being adequately demonstrated for purposes of section
111 of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of section 169 of that Act (42 U.S.C. 7479), or achievable
in practice for purposes of section 171 of that Act (42 U.S.C.
7501); or
‘‘(2) utilize equipment or processes that exceed relevant
Federal or State clean air requirements applicable to the unit
or facilities included in the projects by achieving greater efficiency or environmental performance.
‘‘(b) PRIORITY IN PROJECT SELECTION.—In making an award
under section 3102(a)(2), the Secretary shall give priority to—
‘‘(1) projects whose installation is likely to result in significant air quality improvements in nonattainment air quality
areas or substantially reduce the emission level of criteria
pollutants and mercury air emissions;
‘‘(2) projects for pollution control that result in the mitigation or collection of more than 1 pollutant; and
‘‘(3) projects designed to allow the use of the waste
byproducts or other byproducts of the equipment.

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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary to carry out section 3102(a)(2)—
‘‘(1) $300,000,000 for fiscal year 2007;
‘‘(2) $100,000,000 for fiscal year 2008;
‘‘(3) $40,000,000 for fiscal year 2009;
‘‘(4) $30,000,000 for fiscal year 2010; and
‘‘(5) $30,000,000 for fiscal year 2011.
‘‘(d) APPLICABILITY.—No technology, or level of emission reduction under subsection (a)(2) shall be treated as adequately demonstrated for purpose of Section 111 of the Clean Air Act (42
U.S.C. 7411), achievable for purposes of section 169 of that Act
(42 U.S.C. 7479), or achievable in practice for purposes of section
171 of that Act (42 U.S.C. 7501) solely by reason of the use of
such technology, or the achievement of such emission reduction,
by one or more facilities receiving assistance under section
3102(a)(2).’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table of contents
of the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended
by adding at the end the following:
‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM
‘‘Sec. 3101. Purposes.
‘‘Sec. 3102. Authorization of program.
‘‘Sec. 3103. Generation projects.
‘‘Sec. 3104. Air quality enhancement program.’’.
Coal Leasing
Amendments Act
of 2005.
42 USC 15801.

Subtitle D—Federal Coal Leases
SEC. 431. SHORT TITLE.

This subtitle may be cited as the ‘‘Coal Leasing Amendments
Act of 2005’’.
SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is
amended—
(1) in the first sentence, by striking ‘‘Any person’’ and
inserting the following: ‘‘(a)(1) Except as provided in paragraph
(3), on a finding by the Secretary under paragraph (2), any
person’’;
(2) in the second sentence, by striking ‘‘The Secretary’’
and inserting the following:
‘‘(b) The Secretary’’;
(3) in the third sentence, by striking ‘‘The minimum’’ and
inserting the following:
‘‘(c) The minimum’’;
(4) in subsection (a) (as designated by paragraph (1))—
(A) by striking ‘‘upon’’ and all that follows and inserting
the following: ‘‘secure modifications of the original coal
lease by including additional coal lands or coal deposits
contiguous or cornering to those embraced in the lease.’’;
and
(B) by adding at the end the following:
‘‘(2) A finding referred to in paragraph (1) is a finding by
the Secretary that the modifications—
‘‘(A) would be in the interest of the United States;
‘‘(B) would not displace a competitive interest in the lands;
and

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‘‘(C) would not include lands or deposits that can be developed as part of another potential or existing operation.
‘‘(3) In no case shall the total area added by modifications
to an existing coal lease under paragraph (1)—
‘‘(A) exceed 960 acres; or
‘‘(B) add acreage larger than that in the original lease.’’.
SEC. 433. APPROVAL OF LOGICAL MINING UNITS.

Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2))
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(2) by adding at the end the following:
‘‘(B) The Secretary may establish a period of more than 40
years if the Secretary determines that the longer period—
‘‘(i) will ensure the maximum economic recovery of a coal
deposit; or
‘‘(ii) the longer period is in the interest of the orderly,
efficient, or economic development of a coal resource.’’.
SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b))
is amended—
(1) in the first sentence, by striking ‘‘Each lease’’ and
inserting the following: ‘‘(1) Each lease’’;
(2) in the second sentence, by striking ‘‘The Secretary’’
and inserting the following:
‘‘(2) The Secretary’’;
(3) in the third sentence, by striking ‘‘Such advance royalties’’ and inserting the following:
‘‘(3) Advance royalties described in paragraph (2)’’;
(4) in the seventh sentence, by striking ‘‘The Secretary’’
and inserting the following:
‘‘(6) The Secretary’’;
(5) in the last sentence, by striking ‘‘Nothing’’ and inserting
the following:
‘‘(7) Nothing’’;
(6) by striking the fourth, fifth, and sixth sentences; and
(7) by inserting after paragraph (3) (as designated by paragraph (3)) the following:
‘‘(4) Advance royalties described in paragraph (2) shall be
computed—
‘‘(A) based on—
‘‘(i) the average price in the spot market for sales
of comparable coal from the same region during the last
month of each applicable continued operation year; or
‘‘(ii) in the absence of a spot market for comparable
coal from the same region, by using a comparable method
established by the Secretary of the Interior to capture
the commercial value of coal; and
‘‘(B) based on commercial quantities, as defined by regulation by the Secretary of the Interior.
‘‘(5) The aggregate number of years during the period of any
lease for which advance royalties may be accepted in lieu of the
condition of continued operation shall not exceed 20 years.
‘‘(6) The amount of any production royalty paid for any year
shall be reduced (but not below 0) by the amount of any advance
royalties paid under a lease described in paragraph (5) to the

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extent that the advance royalties have not been used to reduce
production royalties for a prior year.’’.
SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL
LEASE OPERATION AND RECLAMATION PLAN.

Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is
amended by striking ‘‘and not later than three years after a lease
is issued,’’.
SEC. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH
RESPECT TO BONUS BIDS.

Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a))
is amended by adding at the end the following:
‘‘(4)(A) The Secretary shall not require a surety bond or any
other financial assurance to guarantee payment of deferred bonus
bid installments with respect to any coal lease issued on a cash
bonus bid to a lessee or successor in interest having a history
of a timely payment of noncontested coal royalties and advanced
coal royalties in lieu of production (where applicable) and bonus
bid installment payments.
‘‘(B) The Secretary may waive any requirement that a lessee
provide a surety bond or other financial assurance to guarantee
payment of deferred bonus bid installment with respect to any
coal lease issued before the date of the enactment of the Energy
Policy Act of 2005 only if the Secretary determines that the lessee
has a history of making timely payments referred to in subparagraph (A).
‘‘(5) Notwithstanding any other provision of law, if the lessee
under a coal lease fails to pay any installment of a deferred cash
bonus bid within 10 days after the Secretary provides written
notice that payment of the installment is past due—
‘‘(A) the lease shall automatically terminate; and
‘‘(B) any bonus payments already made to the United States
with respect to the lease shall not be returned to the lessee
or credited in any future lease sale.’’.

Deadline.
Notices.

42 USC 15991.

SEC. 437. INVENTORY REQUIREMENT.

(a) REVIEW OF ASSESSMENTS.—
(1) IN GENERAL.—The Secretary of the Interior, in consultation with the Secretary of Agriculture and the Secretary, shall
review coal assessments and other available data to identify—
(A) Federal lands with coal resources that are available
for development;
(B) the extent and nature of any restrictions on the
development of coal resources on Federal lands identified
under paragraph (1); and
(C) with respect to areas of such lands for which sufficient data exists, resources of compliant coal and supercompliant coal.
(2) DEFINITIONS.—For purposes of this subsection—
(A) the term ‘‘compliant coal’’ means coal that contains
not less than 1.0 and not more than 1.2 pounds of sulfur
dioxide per million Btu; and
(B) the term ‘‘supercompliant coal’’ means coal that
contains less than 1.0 pounds of sulfur dioxide per million
Btu.
(b) COMPLETION AND UPDATING OF THE INVENTORY.—The Secretary—

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(1) shall complete the inventory under subsection (a) by
not later than 2 years after the date of enactment of this
Act; and
(2) shall update the inventory as the availability of data
and developments in technology warrant.
(c) REPORT.—The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee
on Energy and Natural Resources of the Senate and make publicly
available—
(1) a report containing the inventory under this section,
by not later than 2 years after the effective date of this section;
and
(2) each update of such inventory.

Deadline.

SEC. 438. APPLICATION OF AMENDMENTS.

30 USC 201 note.

The amendments made by this subtitle apply with respect
to any coal lease issued before, on, or after the date of the enactment
of this Act.

TITLE V—INDIAN ENERGY

Indian Tribal
Energy
Development and
SelfDetermination
Act of 2005.
42 USC 15801
note.

SEC. 501. SHORT TITLE.

This title may be cited as the ‘‘Indian Tribal Energy Development and Self-Determination Act of 2005’’.
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

(a) IN GENERAL.—Title II of the Department of Energy
Organization Act (42 U.S.C. 7131 et seq.) is amended by adding
at the end the following:
‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
‘‘SEC. 217. (a) ESTABLISHMENT.—There is established within
the Department an Office of Indian Energy Policy and Programs
(referred to in this section as the ‘Office’). The Office shall be
headed by a Director, who shall be appointed by the Secretary
and compensated at a rate equal to that of level IV of the Executive
Schedule u