T121.24 O JOURNAL OF THE CTOBER - gpo.gov OF THE 2588 T121.24 OCTOBER 5 ... Sec. 143. Energy Extension Service program. Subtitle F—Federal Agency Energy ... Sec.802.Office of the

JOURNAL OF THE

2588

OCTOBER 5T121.24T121.24 SUBMISSION OF CONFERENCE

REPORT—H.R. 4996

Mr. GEJDENSON submitted a con-ference report (Rept. No. 102–1026) onthe bill (H.R. 4996) to extend the au-thorities of the Overseas Private In-vestment Corporation, and for otherpurposes; together with a statementthereon, for printing in the Recordunder the rule.

T121.25 ENERGY EFFICIENCY

Mr. SHARP, pursuant to House Reso-lution 601, called up the following con-ference report (Rept. No. 102–1018):

The committee of conference on the dis-agreeing votes of the two Houses on theamendment of the Senate to the bill (H.R.776), to provide for improved energy effi-ciency, having met, after full and free con-ference, have agreed to recommend and dorecommend to their respective Houses as fol-lows:

That the House recede from its disagree-ment to the amendment of the Senate andagree to the same with an amendment as fol-lows:

In lieu of the matter proposed to be in-serted by the Senate amendment, insert thefollowing:SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be citedas the ‘‘Energy Policy Act of 1992’’.

(b) TABLE OF CONTENTS.—TITLE I—ENERGY EFFICIENCY

Subtitle A—BuildingsSec. 101. Building energy efficiency stand-

ards.Sec. 102. Residential energy efficiency rat-

ings.Sec. 103. Energy efficient lighting and build-

ing centers.Sec. 104. Manufactured housing energy effi-

ciency.Sec. 105. Energy efficient mortgages.Sec. 106. Energy efficient mortgages pilot

program.Subtitle B—Utilities

Sec. 111. Encouragement of investments inconservation and energy effi-ciency by electric utilities.

Sec. 112. Energy efficiency grants to Stateregulatory authorities.

Sec. 113. Tennessee Valley Authority least-cost planning program.

Sec. 114. Amendment of Hoover Power PlantAct.

Sec. 115. Encouragement of investments inconservation and energy effi-ciency by gas utilities.

Subtitle C—Appliance and EquipmentEnergy Efficiency Standards

Sec. 121. Energy efficiency labeling for win-dows and window systems.

Sec. 122. Energy conservation requirementsfor certain commercial and in-dustrial equipment.

Sec. 123. Energy conservation requirementsfor certain lamps and plumbingproducts.

Sec. 124. High-intensity discharge lamps,distribution transformers, andsmall electric motors.

Sec. 125. Energy efficiency information forcommercial office equipment.

Sec. 126. Energy efficiency information forluminaires.

Sec. 127. Report on the potential of coopera-tive advanced appliance devel-opment.

Sec. 128. Evaluation of utility early replace-ment programs for appliances.

Subtitle D—IndustrialSec. 131. Energy efficiency in industrial fa-

cilities.

Sec. 132. Process-oriented industrial energyefficiency.

Sec. 133. Industrial insulation and auditguidelines.

Subtitle E—State and Local AssistanceSec. 141. Amendments to State energy con-

servation program.Sec. 142. Amendments to low-income weath-

erization program.Sec. 143. Energy Extension Service program.

Subtitle F—Federal Agency EnergyManagement

Sec. 151. Definitions.Sec. 152. Federal energy management

amendments.Sec. 153. General Services Administration

Federal Buildings Fund.Sec. 154. Report by General Services Admin-

istration.Sec. 155. Energy savings performance con-

tracts.Sec. 156. Intergovernmental energy manage-

ment planning and coordina-tion.

Sec. 157. Federal agency energy manage-ment training.

Sec. 158. Energy audit teams.Sec. 159. Federal energy cost accounting and

management.Sec. 160. Inspector General review and agen-

cy accountability.Sec. 161. Procurement and identification of

energy efficient products.Sec. 162. Federal energy efficiency funding

study.Sec. 163. United States Postal Service en-

ergy regulations.Sec. 164. United States Postal Service build-

ing energy survey and report.Sec. 165. United States Postal Service en-

ergy management report.Sec. 166. Energy management requirements

for the United States PostalService.

Sec. 167. Government contract incentives.Sec. 168. Energy management requirements

for congressional buildings.Subtitle G—Miscellaneous

Sec. 171. Energy information.Sec. 172. District heating and cooling pro-

grams.Sec. 173. Study and report on vibration re-

duction technologies.TITLE II—NATURAL GAS

Sec. 201. Fewer restrictions on certain natu-ral gas imports and exports.

Sec. 202. Sense of Congress.TITLE III—ALTERNATIVE FUELS—

GENERALSec. 301. Definitions.Sec. 302. Amendments to the Energy Policy

and Conservation Act.Sec. 303. Minimum Federal fleet require-

ment.Sec. 304. Refueling.Sec. 305. Federal agency promotion, edu-

cation, and coordination.Sec. 306. Agency incentives program.Sec. 307. Recognition and incentive awards

program.Sec. 308. Measurement of alternative fuel

use.Sec. 309. Information collection.Sec. 310. General Services Administration

report.Sec. 311. United States Postal Service.TITLE IV—ALTERNATIVE FUELS—NON-

FEDERAL PROGRAMSSec. 401. Truck commercial application pro-

gram.Sec. 402. Conforming amendments.Sec. 403. Alternative motor fuels amend-

ments.Sec. 404. Vehicular natural gas jurisdiction.Sec. 405. Public information program.Sec. 406. Labeling requirements.

Sec. 407. Data acquisition program.Sec. 408. Federal Energy Regulatory Com-

mission authority to approverecovery of certain expenses inadvance.

Sec. 409. State and local incentives pro-grams.

Sec. 410. Alternative fuel bus program.Sec. 411. Certification of training programs.Sec. 412. Alternative fuel use in nonroad ve-

hicles and engines.Sec. 413. Reports to Congress.Sec. 414. Low interest loan program.TITLE V—AVAILABILITY AND USE OF

REPLACEMENT FUELS, ALTERNATIVEFUELS, AND ALTERNATIVE FUELEDPRIVATE VEHICLES

Sec. 501. Mandate for alternative fuel pro-viders.

Sec. 502. Replacement fuel supply and de-mand program.

Sec. 503. Replacement fuel demand esti-mates and supply information.

Sec. 504. Modification of goals; additionalrulemaking authority.

Sec. 505. Voluntary supply commitments.Sec. 506. Technical and policy analysis.Sec. 507. Fleet requirement program.Sec. 508. Credits.Sec. 509. Secretary’s recommendations to

Congress.Sec. 510. Effect on other laws.Sec. 511. Prohibited acts.Sec. 512. Enforcement.Sec. 513. Powers of the Secretary.Sec. 514. Authorization of appropriations.TITLE VI—ELECTRIC MOTOR VEHICLES

Sec. 601. Definitions.Subtitle A—Electric Motor Vehicle

Commercial Demonstration ProgramSec. 611. Program and solicitation.Sec. 612. Selection of proposals.Sec. 613. Discount payments.Sec. 614. Cost-sharing.Sec. 615. Reports to Congress.Sec. 616. Authorization of appropriations.Subtitle B—Electric Motor Vehicle Infra-

structure and Support Systems Develop-ment Program

Sec. 621. General authority.Sec. 622. Proposals.Sec. 623. Protection of proprietary informa-

tion.Sec. 624. Compliance with existing law.Sec. 625. Electric utility participation

study.Sec. 626. Authorization of appropriations.

TITLE VII—ELECTRICITYSubtitle A—Exempt Wholesale Generators

Sec. 711. Public Utility Holding CompanyAct reform.

Sec. 712. State consideration of the effectsof power purchases on utilitycost of capital; consideration ofthe effects of leveraged capitalstructures on the reliability ofwholesale power sellers; andconsideration of adequate fuelsupplies.

Sec. 713. Public utility holding companies toown interests in cogenerationfacilities.

Sec. 714. Books and records.Sec. 715. Investment in foreign utilities.

Subtitle B—Federal Power Act; InterstateCommerce in Electricity

Sec. 721. Amendments to section 211 of Fed-eral Power Act.

Sec. 722. Transmission services.Sec. 723. Information requirements.Sec. 724. Sales by exempt wholesale genera-

tors.Sec. 725. Penalties.Sec. 726. Definitions.

Subtitle C—State and Local AuthoritiesSec. 731. State authorities.

HOUSE OF REPRESENTATIVES

2589

1992 T121.25TITLE VIII—HIGH-LEVEL RADIOACTIVE

WASTESec. 801. Nuclear waste disposal.Sec. 802. Office of the Nuclear Waste Nego-

tiator.Sec. 803. Nuclear Waste Management Plan.TITLE IX—UNITED STATES ENRICHMENT

CORPORATIONSec. 901. Establishment of the United States

Enrichment Corporation.Sec. 902. Conforming amendments and re-

pealers.Sec. 903. Restrictions on nuclear exports.Sec. 904. Severability.

TITLE X—REMEDIAL ACTION ANDURANIUM REVITALIZATION

Subtitle A—Remedial Action at ActiveProcessing Sites

Sec. 1001. Remedial action program.Sec. 1002. Regulations.Sec. 1003. Authorization of appropriations.Sec. 1004. Definitions.

Subtitle B—Uranium Revitalization

Sec. 1011. Overfeed program.Sec. 1012. National Strategic Uranium Re-

serve.Sec. 1013. Sale of remaining DOE inven-

tories.Sec. 1014. Responsibility for the industry.Sec. 1015. Annual uranium purchase reports.Sec. 1016. Uranium inventory study.Sec. 1017. Regulatory treatment of uranium

purchases.Sec. 1018. Definitions.

Subtitle C—Remedial Action at InactiveProcessing Sites

Sec. 1031. Uranium Mill Tailings RadiationControl Act extension.

TITLE XI—URANIUM ENRICHMENTHEALTH, SAFETY, AND ENVIRONMENTISSUES

Sec. 1101. Uranium enrichment health, safe-ty, and environment issues.

Sec. 1102. Licensing of AVLIS.Sec. 1103. Table of contents.

TITLE XII—RENEWABLE ENERGY

Sec. 1201. Purposes.Sec. 1202. Demonstration and commercial

application projects for renew-able energy and energy effi-ciency technologies.

Sec. 1203. Renewable energy export tech-nology training.

Sec. 1204. Renewable energy advancementawards.

Sec. 1205. Study of tax and rate treatment ofrenewable energy projects.

Sec. 1206. Study of rice milling energy by-product marketing.

Sec. 1207. Duties of interagency workinggroup on renewable energy andenergy efficiency exports.

Sec. 1208. Study of export promotion prac-tices.

Sec. 1209. Data system and energy tech-nology evaluation.

Sec. 1210. Outreach.Sec. 1211. Innovative renewable energy tech-

nology transfer program.Sec. 1212. Renewable energy production in-

centive.

TITLE XIII—COAL

Subtitle A—Research, Development,Demonstration, and Commercial Application

Sec. 1301. Coal research, development, dem-onstration, and commercial ap-plication programs.

Sec. 1302. Coal-fired diesel engines.Sec. 1303. Clean coal, waste-to-energy.Sec. 1304. Nonfuel use of coal.Sec. 1305. Coal refinery program.Sec. 1306. Coalbed methane recovery.Sec. 1307. Metallurgical coal development.Sec. 1308. Utilization of coal wastes.

Sec. 1309. Underground coal gasification.Sec. 1310. Low-rank coal research and devel-

opment.Sec. 1311. Magnetohydrodynamics.Sec. 1312. Oil substitution through coal liq-

uefaction.Sec. 1313. Authorization of appropriations.Subtitle B—Clean Coal Technology ProgramSec. 1321. Additional clean coal technology

solicitations.Subtitle C—Other Coal Provisions

Sec. 1331. Clean coal technology export pro-motion and interagency coordi-nation.

Sec. 1332. Innovative clean coal technologytransfer program.

Sec. 1333. Conventional coal technologytransfer.

Sec. 1334. Study of utilization of coal com-bustion byproducts.

Sec. 1335. Calculation of avoided cost.Sec. 1336. Coal fuel mixtures.Sec. 1337. National clearinghouse.Sec. 1338. Coal exports.Sec. 1339. Ownership of coalbed methane.Sec. 1340. Establishment of data base and

study of transportation rates.Sec. 1341. Authorization of appropriations.

TITLE XIV—STRATEGIC PETROLEUMRESERVE

Sec. 1401. Drawdown and distribution of thereserve.

Sec. 1402. Expansion of reserve.Sec. 1403. Availability of funding for leasing.Sec. 1404. Purchase from stripper well prop-

erties.Sec. 1405. Redesignation of island States.Sec. 1406. Insular areas study.

TITLE XV—OCTANE DISPLAY ANDDISCLOSURE

Sec. 1501. Certification and posting of auto-motive fuel ratings.

Sec. 1502. Increased authority for enforce-ment.

Sec. 1503. Studies.TITLE XVI—GLOBAL CLIMATE CHANGE

Sec. 1601. Report.Sec. 1602. Least-cost energy strategy.Sec. 1603. Director of Climate Protection.Sec. 1604. Assessment of alternative policy

mechanisms for addressinggreenhouse gas emissions.

Sec. 1605. National inventory and voluntaryreporting of greenhouse gases.

Sec. 1606. Repeal.Sec. 1607. Conforming amendment.Sec. 1608. Innovative environmental tech-

nology transfer program.Sec. 1609. Global climate change response

fund.

TITLE XVII—ADDITIONAL FEDERALPOWER ACT PROVISIONS

Sec. 1701. Additional Federal Power Act pro-visions.

TITLE XVIII—OIL PIPELINEREGULATORY REFORM

Sec. 1801. Oil pipeline ratemaking methodol-ogy.

Sec. 1802. Streamlining of Commission pro-cedures.

Sec. 1803. Protection of certain existingrates.

Sec. 1804. Definitions.

TITLE XX—GENERAL PROVISIONS;REDUCTION OF OIL VULNERABILITY

Sec. 2001. Goals.

Subtitle A—Oil and Gas SupplyEnhancement

Sec. 2011. Enhanced oil recovery.Sec. 2012. Oil shale.Sec. 2013. Natural gas supply.Sec. 2014. Natural gas end-use technologies.Sec. 2015. Midcontinent Energy Research

Center.

Subtitle B—Oil and Gas Demand Reductionand Substitution

Sec. 2021. General transportation.Sec. 2022. Advanced automotive fuel econ-

omy.Sec. 2023. Alternative fuel vehicle program.Sec. 2024. Biofuels user facility.Sec. 2025. Electric motor vehicles and asso-

ciated equipment research anddevelopment.

Sec. 2026. Renewable hydrogen energy.Sec. 2027. Advanced diesel emissions pro-

gram.Sec. 2028. Telecommuting study.TITLE XXI—ENERGY AND ENVIRONMENT

Subtitle A—Improved Energy EfficiencySec. 2101. General improved energy effi-

ciency.Sec. 2102. Natural gas and electric heating

and cooling technologies.Sec. 2103. Pulp and paper.Sec. 2104. Advanced buildings for 2005.Sec. 2105. Electric drives.Sec. 2106. Steel, aluminum, and metal re-

search.Sec. 2107. Improving efficiency in energy-in-

tensive industries.Sec. 2108. Energy efficient environmental

program.Subtitle B—Electricity Generation and Use

Sec. 2111. Renewable energy.Sec. 2112. High efficiency heat engines.Sec. 2113. Civilian nuclear waste.Sec. 2114. Fusion energy.Sec. 2115. Fuel cells.Sec. 2116. Environmental restoration and

waste management program.Sec. 2117. High-temperature superconduc-

tivity program.Sec. 2118. Electric and magnetic fields re-

search and public informationdissemination program.

Sec. 2119. Spark M. Matsunaga RenewableEnergy and Ocean TechnologyCenter.

Subtitle C—Advanced Nuclear ReactorsSec. 2121. Purposes and definitions.Sec. 2122. Program, goals, and plan.Sec. 2123. Commercialization of advanced

light water reactor technology.Sec. 2124. Prototype demonstration of ad-

vanced nuclear reactor tech-nology.

Sec. 2125. Repeals.Sec. 2126. Authorization of appropriations.

TITLE XXII—ENERGY AND ECONOMICGROWTH

Sec. 2201. National advanced materials ini-tiative.

Sec. 2202. National advanced manufacturingtechnologies initiative.

Sec. 2203. Supporting research and technicalanalysis.

Sec. 2204. Math and science education pro-gram.

Sec. 2205. Integration of research and devel-opment.

Sec. 2206. Definitions.TITLE XXIII—POLICY AND

ADMINISTRATIVE PROVISIONSSec. 2301. Policy on major construction

projects.Sec. 2302. Energy research, development,

demonstration, and commercialapplication advisory board.

Sec. 2303. Amendments to existing law.Sec. 2304. Management plan.Sec. 2305. Costs related to decommissioning

and the storage and disposal ofnuclear waste.

Sec. 2306. Limits on participation by compa-nies.

Sec. 2307. Uncosted obligations.TITLE XXIV—NON-FEDERAL POWER ACT

HYDROPOWER PROVISIONSSec. 2401. Rights-of-way on certain Federal

lands.

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OCTOBER 5T121.25Sec. 2402. Dams in national park system

units.Sec. 2403. Third party contracting by FERC.Sec. 2404. Improvement at existing Federal

facilities.Sec. 2405. Water conservation and energy

production.Sec. 2406. Federal projects in the Pacific

Northwest.Sec. 2407. Certain projects in Alaska.Sec. 2408. Projects on fresh waters in State

of Hawaii.Sec. 2409. Evaluation of development poten-

tial.TITLE XXV—COAL, OIL, AND GAS

Sec. 2501. Hot dry rock geothermal energy.Sec. 2502. Hot dry rock geothermal energy in

eastern United States.Sec. 2503. Coal remining.Sec. 2504. Surface Mining Act implementa-

tion.Sec. 2505. Federal lignite coal royalties.Sec. 2506. Acquired Federal land mineral re-

ceipts management.Sec. 2507. Reserved oil and gas.Sec. 2508. Certain outstanding oil and gas.Sec. 2509. Federal onshore oil and gas leas-

ing.Sec. 2510. Oil placer claims.Sec. 2511. Oil shale claims.Sec. 2512. Health, safety, and mining tech-

nology research program.Sec. 2513. Assistance to small coal opera-

tors.Sec. 2514. Surface mining regulations.Sec. 2515. Amendment to Surface Mining

Act.TITLE XXVI—INDIAN ENERGY

RESOURCESSec. 2601. Definitions.Sec. 2602. Tribal consultation.Sec. 2603. Promoting energy resource devel-

opment and energy vertical in-tegration on Indian reserva-tions.

Sec. 2604. Indian energy resource regulation.Sec. 2605. Indian Energy Resource Commis-

sion.Sec. 2606. Tribal government energy assist-

ance program.TITLE XXVII—INSULAR AREAS ENERGY

SECURITYSec. 2701. Insular areas energy assistance

program.Sec. 2702. Definition.Sec. 2703. Electricity requirements in Trust

Territory of the Pacific Islands.Sec. 2704. PCB cleanup in Marshall Islands

and Federated States of Micro-nesia.

TITLE XXVIII—NUCLEAR PLANTLICENSING

Sec. 2801. Combined licenses.Sec. 2802. Post-construction hearings on

combined licenses.Sec. 2803. Rulemaking.Sec. 2804. Amendment of a combined license

pending a hearing.Sec. 2805. Judicial review.Sec. 2806. Effect on pending proceedings.Sec. 2807. Conforming amendment.

TITLE XXIX—ADDITIONAL NUCLEARENERGY PROVISIONS

Sec. 2901. State authority to regulate radi-ation below level of NRC regu-latory concern.

Sec. 2902. Employee protection for nuclearwhistleblowers.

Sec. 2903. Exemption of certain research andeducational licensees from an-nual charges.

Sec. 2904. Study and implementation plan onsafety of shipments of pluto-nium by sea.

TITLE XXX—MISCELLANEOUSSubtitle A—General Provisions

Sec. 3001. Research, development, dem-onstration, and commercial ap-plication activities.

Sec. 3002. Cost sharing.

Subtitle B—Other Miscellaneous ProvisionsSec. 3011. Powerplant and Industrial Fuel

Use Act of 1978 repeal.Sec. 3012. Alaska Natural Gas Transpor-

tation Act of 1976 repeal.Sec. 3013. Geothermal heat pumps.Sec. 3014. Use of energy futures for fuel pur-

chases.Sec. 3015. Energy subsidy study.Sec. 3016. Tar sands.Sec. 3017. Amendments to title 11 of the

United States Code.Sec. 3018. Radiation exposure compensation.Sec. 3019. Strategic diversification.Sec. 3020. Consultative Commission on West-

ern Hemisphere Energy and En-vironment.

Sec. 3021. Disadvantaged business enter-prises.

SEC. 2. DEFINITION.For purposes of this Act, the term ‘‘Sec-

retary’’ means the Secretary of Energy.TITLE I—ENERGY EFFICIENCY

Subtitle A—BuildingsSEC. 101. BUILDING ENERGY EFFICIENCY STAND-

ARDS.(a) IN GENERAL.—Title III of the Energy

Conservation and Production Act (42 U.S.C.6831 et seq.) is amended—

(1) in section 303—(A) by striking paragraph (9);(B) by redesignating paragraphs (10), (11),

(12), and (13) as paragraphs (9), (10), (11), and(12), respectively; and

(C) by adding at the end the following newparagraphs—

‘‘(13) The term ‘Federal building energystandards’ means energy consumption objec-tives to be met without specification of themethods, materials, or equipment to be em-ployed in achieving those objectives, but in-cluding statements of the requirements, cri-teria, and evaluation methods to be used,and any necessary commentary.

‘‘(14) The term ‘voluntary building energycode’ means a building energy code devel-oped and updated through a consensus proc-ess among interested persons, such as thatused by the Council of American Building Of-ficials; the American Society of Heating, Re-frigerating, and Air-Conditioning Engineers;or other appropriate organizations.

‘‘(15) The term ‘CABO’ means the Councilof American Building Officials.

‘‘(16) The term ‘ASHRAE’ means the Amer-ican Society of Heating, Refrigerating, andAir-Conditioning Engineers.’’; and

(2) by striking sections 304, 306, 308, 309, 310,and 311 and inserting the following:‘‘SEC. 304. UPDATING STATE BUILDING ENERGY

EFFICIENCY CODES.‘‘(a) CONSIDERATION AND DETERMINATION

RESPECTING RESIDENTIAL BUILDING ENERGYCODES.—(1) Not later than 2 years after thedate of the enactment of the Energy PolicyAct of 1992, each State shall certify to theSecretary that it has reviewed the provisionsof its residential building code regarding en-ergy efficiency and made a determination asto whether it is appropriate for such State torevise such residential building code provi-sions to meet or exceed CABO Model EnergyCode, 1992.

‘‘(2) The determination referred to in para-graph (1) shall be—

‘‘(A) made after public notice and hearing;‘‘(B) in writing;‘‘(C) based upon findings included in such

determination and upon the evidence pre-sented at the hearing; and

‘‘(D) available to the public.‘‘(3) Each State may, to the extent consist-

ent with otherwise applicable State law, re-vise the provisions of its residential buildingcode regarding energy efficiency to meet orexceed CABO Model Energy Code, 1992, ormay decline to make such revisions.

‘‘(4) If a State makes a determinationunder paragraph (1) that it is not appropriatefor such State to revise its residential build-ing code, such State shall submit to the Sec-retary, in writing, the reasons for such de-termination, and such statement shall beavailable to the public.

‘‘(5)(A) Whenever CABO Model EnergyCode, 1992, (or any successor of such code) isrevised, the Secretary shall, not later than12 months after such revision, determinewhether such revision would improve energyefficiency in residential buildings. The Sec-retary shall publish notice of such deter-mination in the Federal Register.

‘‘(B) If the Secretary makes an affirmativedetermination under subparagraph (A), eachState shall, not later than 2 years after thedate of the publication of such determina-tion, certify that it has reviewed the provi-sions of its residential building code regard-ing energy efficiency and made a determina-tion as to whether it is appropriate for suchState to revise such residential building codeprovisions to meet or exceed the revised codefor which the Secretary made such deter-mination.

‘‘(C) Paragraphs (2), (3), and (4) shall applyto any determination made under subpara-graph (B).

‘‘(b) CERTIFICATION OF COMMERCIAL BUILD-ING ENERGY CODE UPDATES.—(1) Not laterthan 2 years after the date of the enactmentof the Energy Policy Act of 1992, each Stateshall certify to the Secretary that it has re-viewed and updated the provisions of itscommercial building code regarding energyefficiency. Such certification shall include ademonstration that such State’s code provi-sions meet or exceed the requirements ofASHRAE Standard 90.1–1989.

‘‘(2)(A) Whenever the provisions ofASHRAE Standard 90.1–1989 (or any succes-sor standard) regarding energy efficiency incommercial buildings are revised, the Sec-retary shall, not later than 12 months afterthe date of such revision, determine whethersuch revision will improve energy efficiencyin commercial buildings. The Secretary shallpublish a notice of such determination in theFederal Register.

‘‘(B)(i) If the Secretary makes an affirma-tive determination under subparagraph (A),each State shall, not later than 2 years afterthe date of the publication of such deter-mination, certify that it has reviewed andupdated the provisions of its commercialbuilding code regarding energy efficiency inaccordance with the revised standard forwhich such determination was made. Suchcertification shall include a demonstrationthat the provisions of such State’s commer-cial building code regarding energy effi-ciency meet or exceed such revised standard.

‘‘(ii) If the Secretary makes a determina-tion under subparagraph (A) that such re-vised standard will not improve energy effi-ciency in commercial buildings, State com-mercial building code provisions regardingenergy efficiency shall meet or exceedASHRAE Standard 90.1–1989, or if such stand-ard has been revised, the last revised stand-ard for which the Secretary has made an af-firmative determination under subparagraph(A).

‘‘(c) EXTENSIONS.—The Secretary shall per-mit extensions of the deadlines for the cer-tification requirements under subsections (a)and (b) if a State can demonstrate that ithas made a good faith effort to comply withsuch requirements and that it has made sig-nificant progress in doing so.

‘‘(d) TECHNICAL ASSISTANCE.—The Sec-retary shall provide technical assistance toStates to implement the requirements ofthis section, and to improve and implementState residential and commercial buildingenergy efficiency codes or to otherwise pro-mote the design and construction of energyefficient buildings.


2591

1992 T121.25‘‘(e) AVAILABILITY OF INCENTIVE FUNDING.—

(1) The Secretary shall provide incentivefunding to States to implement the require-ments of this section, and to improve andimplement State residential and commercialbuilding energy efficiency codes. In deter-mining whether, and in what amount, to pro-vide incentive funding under this subsection,the Secretary shall consider the actions pro-posed by the State to implement the require-ments of this section, to improve and imple-ment residential and commercial buildingenergy efficiency codes, and to promotebuilding energy efficiency through the use ofsuch codes.

‘‘(2) There are authorized to be appro-priated such sums as may be necessary tocarry out this subsection.‘‘SEC. 305. FEDERAL BUILDING ENERGY EFFI-

CIENCY STANDARDS.‘‘(a)(1) IN GENERAL.—Not later than 2 years

after the date of the enactment of the En-ergy Policy Act of 1992, the Secretary, afterconsulting with appropriate Federal agen-cies, CABO, ASHRAE, the National Associa-tion of Home Builders, the Illuminating En-gineering Society, the American Institute ofArchitects, the National Conference of theStates on Building Codes and Standards, andother appropriate persons, shall establish, byrule, Federal building energy standards thatrequire in new Federal buildings those en-ergy efficiency measures that are techno-logically feasible and economically justified.Such standards shall become effective nolater than 1 year after such rule is issued.

‘‘(2) The standards established under para-graph (1) shall—

‘‘(A) contain energy saving and renewableenergy specifications that meet or exceedthe energy saving and renewable energyspecifications of CABO Model Energy Code,1992 (in the case of residential buildings) orASHRAE Standard 90.1–1989 (in the case ofcommercial buildings);

‘‘(B) to the extent practicable, use thesame format as the appropriate voluntarybuilding energy code; and

‘‘(C) consider, in consultation with the En-vironmental Protection Agency and otherFederal agencies, and where appropriate con-tain, measures with regard to radon andother indoor air pollutants.

‘‘(b) REPORT ON COMPARATIVE STANDARDS.—The Secretary shall identify and describe, inthe report required under section 308, thebasis for any substantive difference betweenthe Federal building energy standards estab-lished under this section (including dif-ferences in treatment of energy efficiencyand renewable energy) and the appropriatevoluntary building energy code.

‘‘(c) PERIODIC REVIEW.—The Secretaryshall periodically, but not less than onceevery 5 years, review the Federal buildingenergy standards established under this sec-tion and shall, if significant energy savingswould result, upgrade such standards to in-clude all new energy efficiency and renew-able energy measures that are techno-logically feasible and economically justified.

‘‘(d) INTERIM STANDARDS.—Interim energyperformance standards for new Federalbuildings issued by the Secretary under thistitle as it existed before the date of the en-actment of the Energy Policy Act of 1992shall remain in effect until the standards es-tablished under subsection (a) become effec-tive.‘‘SEC. 306. FEDERAL COMPLIANCE.

‘‘(a) PROCEDURES.—(1) The head of eachFederal agency shall adopt procedures nec-essary to assure that new Federal buildingsmeet or exceed the Federal building energystandards established under section 305.

‘‘(2) The Federal building energy standardsestablished under section 305 shall apply tonew buildings under the jurisdiction of the

Architect of the Capitol. The Architect shalladopt procedures necessary to assure thatsuch buildings meet or exceed such stand-ards.

‘‘(b) CONSTRUCTION OF NEW BUILDINGS.—The head of a Federal agency may expendFederal funds for the construction of a newFederal building only if the building meetsor exceeds the appropriate Federal buildingenergy standards established under section305.‘‘SEC. 307. SUPPORT FOR VOLUNTARY BUILDING

ENERGY CODES.‘‘(a) IN GENERAL.—Not later than 1 year

after the date of the enactment of the En-ergy Policy Act of 1992, the Secretary, afterconsulting with the Secretary of Housingand Urban Development, the Secretary ofVeterans Affairs, other appropriate Federalagencies, CABO, ASHRAE, the National Con-ference of States on Building Codes andStandards, and any other appropriate build-ing codes and standards organization, shallsupport the upgrading of voluntary buildingenergy codes for new residential and com-mercial buildings. Such support shall in-clude—

‘‘(1) a compilation of data and other infor-mation regarding building energy efficiencystandards and codes in the possession of theFederal Government, State and local govern-ments, and industry organizations;

‘‘(2) assistance in improving the technicalbasis for such standards and codes;

‘‘(3) assistance in determining the cost-ef-fectiveness and the technical feasibility ofthe energy efficiency measures included insuch standards and codes; and

‘‘(4) assistance in identifying appropriatemeasures with regard to radon and other in-door air pollutants.

‘‘(b) REVIEW.—The Secretary shall periodi-cally review the technical and economicbasis of voluntary building energy codes and,based upon ongoing research activities—

‘‘(1) recommend amendments to such codesincluding measures with regard to radon andother indoor air pollutants;

‘‘(2) seek adoption of all technologicallyfeasible and economically justified energyefficiency measures; and

‘‘(3) otherwise participate in any industryprocess for review and modification of suchcodes.‘‘SEC. 308. REPORTS.

‘‘The Secretary, in consultation with theSecretary of Housing and Urban Develop-ment, the Secretary of Veterans Affairs, andother appropriate Federal agencies, shall re-port annually to the Congress on activitiesconducted pursuant to this title. Such reportshall include—

‘‘(1) recommendations made under section307(b) regarding the prevailing voluntarybuilding energy codes;

‘‘(2) a State-by-State summary of actionstaken under this title; and

‘‘(3) recommendations to the Congress withrespect to opportunities to further promotebuilding energy efficiency and otherwisecarry out the purposes of this title.’’.

(b) CONFORMING AMENDMENT.—The table ofcontents of such Act is amended by strikingthe items relating to sections 304, 306, 308,309, 310 and 311, and inserting in lieu thereofthe following—‘‘Sec. 304. Updating State building energy ef-

ficiency codes.‘‘Sec. 305. Federal building energy efficiency

standards.‘‘Sec. 306. Federal compliance.‘‘Sec. 307. Support for voluntary building en-

ergy codes.‘‘Sec. 308. Reports.’’.

(c) FEDERAL MORTGAGE REQUIREMENTS.—(1) AMENDMENT TO CRANSTON-GONZALEZ NA-

TIONAL AFFORDABLE HOUSING ACT.—Section109 of the Cranston-Gonzalez National Af-

fordable Housing Act (42 U.S.C. 12709) isamended to read as follows:‘‘SEC. 109. ENERGY EFFICIENCY STANDARDS.

‘‘(a) ESTABLISHMENT.—‘‘(1) IN GENERAL.—The Secretary of Hous-

ing and Urban Development and the Sec-retary of Agriculture shall, not later than 1year after the date of the enactment of theEnergy Policy Act of 1992, jointly establish,by rule, energy efficiency standards for—

‘‘(A) new construction of public and as-sisted housing and single family and multi-family residential housing (other than manu-factured homes) subject to mortgages in-sured under the National Housing Act; and

‘‘(B) new construction of single familyhousing (other than manufactured homes)subject to mortgages insured, guaranteed, ormade by the Secretary of Agriculture undertitle V of the Housing Act of 1949.

‘‘(2) CONTENTS.—Such standards shall meetor exceed the requirements of the Council ofAmerican Building Officials Model EnergyCode, 1992 (hereafter in this section referredto as ‘CABO Model Energy Code, 1992’), or, inthe case of multifamily high rises, the re-quirements of the American Society of Heat-ing, Refrigerating, and Air-Conditioning En-gineers Standard 90.1–1989 (hereafter in thissection referred to as ‘ASHRAE Standard90.1–1989’), and shall be cost-effective with re-spect to construction and operating costs ona life-cycle cost basis. In developing suchstandards, the Secretaries shall consult withan advisory task force composed of home-builders, national, State, and local housingagencies (including public housing agencies),energy agencies, building code organizationsand agencies, energy efficiency organiza-tions, utility organizations, low-incomehousing organizations, and other parties des-ignated by the Secretaries.

‘‘(b) MODEL ENERGY CODE.—If the Secretar-ies have not, within 1 year after the date ofthe enactment of the Energy Policy Act of1992, established energy efficiency standardsunder subsection (a), all new construction ofhousing specified in such subsection shallmeet the requirements of CABO Model En-ergy Code, 1992, or, in the case of multifam-ily high rises, the requirements of ASHRAEStandard 90.1–1989.

‘‘(c) REVISIONS OF MODEL ENERGY CODE.—Ifthe requirements of CABO Model EnergyCode, 1992, or, in the case of multifamilyhigh rises, ASHRAE Standard 90.1–1989, arerevised at any time, the Secretaries shall,not later than 1 year after such revision,amend the standards established under sub-section (a) to meet or exceed the require-ments of such revised code or standard un-less the Secretaries determine that compli-ance with such revised code or standardwould not result in a significant increase inenergy efficiency or would not be techno-logically feasible or economically justified.’’.

(2) AMENDMENT TO TITLE 38, UNITED STATESCODE.—Section 3704 of title 38, United StatesCode, is amended by adding at the end there-of the following new subsection:

‘‘(g) A loan for the purchase or construc-tion of new residential property, the con-struction of which began after the energy ef-ficiency standards under section 109 of theCranston-Gonzalez National AffordableHousing Act (42 U.S.C. 12709), as amended bysection 101(c) of the Energy Policy Act of1992, take effect, may not be financedthrough the assistance of this chapter unlessthe new residential property is constructedin compliance with such standards.’’.SEC. 102. RESIDENTIAL ENERGY EFFICIENCY

RATINGS.

(a) RATINGS.—Title II of the National En-ergy Conservation Policy Act (42 U.S.C. 8211et seq.) is amended by adding at the end thefollowing new part:

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OCTOBER 5T121.25‘‘PART 6—RESIDENTIAL ENERGYEFFICIENCY RATING GUIDELINES

‘‘SEC. 271. VOLUNTARY RATING GUIDELINES.

‘‘(a) IN GENERAL.—Not later than 18months after the date of the enactment ofthe Energy Policy Act of 1992, the Secretary,in consultation with the Secretary of Hous-ing and Urban Development, the Secretary ofVeterans Affairs, representatives of existinghome energy rating programs, and other ap-propriate persons, shall, by rule, issue vol-untary guidelines that may be used by Stateand local governments, utilities, builders,real estate agents, lenders, agencies in mort-gage markets, and others, to enable and en-courage the assignment of energy efficiencyratings to residential buildings.

‘‘(b) CONTENTS OF GUIDELINES.—The vol-untary guidelines issued under subsection (a)shall—

‘‘(1) encourage uniformity with regard tosystems for rating the annual energy effi-ciency of residential buildings;

‘‘(2) establish protocols and proceduresfor—

‘‘(A) certification of the technical accu-racy of building energy analysis tools usedto determine energy efficiency ratings;

‘‘(B) training of personnel conducting en-ergy efficiency ratings;

‘‘(C) data collection and reporting;‘‘(D) quality control; and‘‘(E) monitoring and evaluation;‘‘(3) encourage consistency with, and sup-

port for, the uniform plan for Federal energyefficient mortgages, including that devel-oped under section 946 of the Cranston-Gon-zalez National Affordable Housing Act (42U.S.C. 12712 note) and pursuant to sections105 and 106 of the Energy Policy Act of 1992;

‘‘(4) provide that rating systems take intoaccount local climate conditions and con-struction practices, solar energy collectedon-site, and the benefits of peak load shiftingconstruction practices, and not discriminateamong fuel types; and

‘‘(5) establish procedures to ensure thatresidential buildings can receive an energyefficiency rating at the time of sale and thatsuch rating is communicated to potentialbuyers.‘‘SEC. 272. TECHNICAL ASSISTANCE.

‘‘Not later than 2 years after the date ofthe enactment of the Energy Policy Act of1992, the Secretary shall establish a programto provide technical assistance to State andlocal organizations to encourage the adop-tion of and use of residential energy effi-ciency rating systems consistent with thevoluntary guidelines issued under section271.‘‘SEC. 273. REPORT.

‘‘Not later than 3 years after the date ofthe enactment of the Energy Policy Act of1992, the Secretary shall transmit to thePresident and the Congress a final reportcontaining—

‘‘(1) a description of actions taken by theSecretary and other Federal agencies to im-plement this part;

‘‘(2) a description of the action taken byStates, local governments, and other organi-zations to implement the voluntary guide-lines issued under section 271 and any prob-lems encountered in implementing suchguidelines; and

‘‘(3) recommendations on the feasibility ofrequiring, as a prerequisite to receiving fed-erally assisted, guaranteed, or insured mort-gages, the achievement of a minimum en-ergy efficiency rating.’’.

(b) CONFORMING AMENDMENT.—The table ofcontents for such Act is amended by addingat the end of title II the following:

‘‘PART 6—RESIDENTIAL ENERGY EFFICIENCYRATINGS

‘‘Sec. 271. Voluntary rating guidelines.

‘‘Sec. 272. Technical assistance.‘‘Sec. 273. Report.’’.SEC. 103. ENERGY EFFICIENT LIGHTING AND

BUILDING CENTERS.(a) PURPOSE.—The purpose of this section

is to encourage energy efficiency in build-ings through the establishment of regionalcenters to promote energy efficient lighting,heating and cooling, and building design.

(b) GRANTS FOR ESTABLISHMENT.—Not laterthan 18 months after the date of the enact-ment of this Act, the Secretary shall makegrants to nonprofit institutions, or to con-sortiums that may include nonprofit institu-tions, State and local governments, univer-sities, and utilities, to establish or enhanceone regional building energy efficiency cen-ter (hereafter in this section referred to as a‘‘regional center’’) in each of the 10 regionsserved by a Department of Energy regionalsupport office.

(c) PERMITTED ACTIVITIES.—Each regionalcenter established under this section may—

(1) provide information, training, and tech-nical assistance to building professionalssuch as architects, designers, engineers, con-tractors, and building code officials, onbuilding energy efficiency methods and tech-nologies, including lighting, heating andcooling, and passive solar;

(2) operate an outreach program to informsuch building professionals of the benefitsand opportunities of energy efficiency, andof the services of the center;

(3) provide displays demonstrating buildingenergy efficiency methods and technologies,such as lighting, windows, and heating andcooling equipment;

(4) coordinate its activities and programswith other institutions within the region,such as State and local governments, utili-ties, and educational institutions, in order tosupport their efforts to promote building en-ergy efficiency;

(5) serve as a clearinghouse to ensure thatinformation about new building energy effi-ciency technologies, including case studiesof successful applications, is disseminated toend-users in the region;

(6) study the building energy needs of theregion and make available region-specific en-ergy efficiency information to facilitate theadoption of cost-effective energy efficiencyimprovements;

(7) assist educational institutions in estab-lishing building energy efficiency engineer-ing and technical programs and curricula;and

(8) evaluate the performance of the centerin promoting building energy efficiency.

(d) APPLICATION.—Any nonprofit institu-tion or consortium interested in receiving agrant under this section shall submit to theSecretary an application in such form andcontaining such information as the Sec-retary may require. A lighting or buildingenergy center in existence on the date of theenactment of this section which is ownedand operated by a nonprofit institution or aconsortium as described in subsection (b)shall be eligible for a grant under this sec-tion.

(e) SELECTION CRITERIA.—The Secretaryshall select recipients of grants under thissection on the basis of the following criteria:

(1) The capability of the grant recipient toestablish a board of directors for the regionalcenter composed of representatives fromutilities, State and local governments, build-ing trade and professional organizations,manufacturers, and nonprofit energy and en-vironmental organizations.

(2) The demonstrated or potential re-sources available to the grant recipient forcarrying out this subsection.

(3) The demonstrated or potential abilityof the grant recipient to promote buildingenergy efficiency by carrying out the activi-ties specified in subsection (c).

(4) The activities which the grant recipientproposes to carry out under the grant.

(f) REQUIREMENT OF MATCHING FUNDS.—(1) FEDERAL SHARE.—The Federal share of a

grant under this section shall be no morethan 50 percent of the costs of establishing,and no more than 25 percent of the cost ofoperating the regional center.

(2) NON-FEDERAL CONTRIBUTIONS.—No grantmay be made under this section in any fiscalyear unless the recipient of such grant en-ters into such agreements with the Sec-retary as the Secretary may require to en-sure that such recipient will provide the nec-essary non-Federal contributions. Such non-Federal contributions may be provided byutilities, State and local governments, non-profit institutions, foundations, corpora-tions, and other non-Federal entities.

(g) TASK FORCE.—The Secretary shall es-tablish a task force to—

(1) advise the Secretary on activities to becarried out by grant recipients;

(2) review and evaluate programs carriedout by grant recipients; and

(3) make recommendations regarding thebuilding energy efficiency center grant pro-gram.

(h) MEMBERSHIP TERMS AND ADMINISTRA-TION OF TASK FORCE.—

(1) IN GENERAL.—The task force shall becomposed of approximately 20 members, ap-pointed by the Secretary, with expertise inthe area of building energy efficiency, in-cluding representatives from—

(A) State or local energy offices;(B) utilities;(C) building construction trade or profes-

sional associations;(D) architecture, engineering or profes-

sional associations;(E) building component or equipment man-

ufacturers;(F) from national laboratories;(G) building code officials or professional

associations; and(H) nonprofit energy or environmental or-

ganizations.(2) GEOGRAPHIC REPRESENTATION.—The Sec-

retary shall ensure that there is broad geo-graphical representation among task forcemembers.

(3) TERMS.—Members shall be appointed fora term of 3 years. A vacancy in the taskforce shall be filled in the manner in whichthe original appointment was made.

(4) PAY.—Members shall serve without pay.Each member shall receive travel expenses,including per diem in lieu of subsistence, inaccordance with sections 5702 and 5703 oftitle 5, United States Code.

(5) CHAIRPERSON.—The Chairperson andVice Chairperson of the task force shall beelected by the members.

(6) MEETINGS.—The task force shall meetbiannually and at the call of the Chair-person.

(7) INAPPLICABILITY OF TERMINATION DATE.—Section 14 of the Federal Advisory Commit-tee Act shall not apply to the task force.

(i) REPORT.—The Secretary shall transmitannually to the Congress a report on the ac-tivities of regional centers established underthis section, including the degree to whichmatching funds are being leveraged from pri-vate sources to establish and operate suchcenters.

(j) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated forpurposes of carrying out this section, to re-main available until expended, not morethan $10,000,000 for each of fiscal years 1994,1995, and 1996.SEC. 104. MANUFACTURED HOUSING ENERGY EF-

FICIENCY.(a) AMENDMENTS TO CRANSTON-GONZALEZ

NATIONAL AFFORDABLE HOUSING ACT.—Sec-tion 943(d)(1) of the Cranston-Gonzalez Na-


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1992 T121.25tional Affordable Housing Act (Public Law101–625; 109 Stat. 4413) is amended—

(1) in subparagraph (D), by striking ‘‘ther-mal insulation, energy efficiency’’;

(2) by redesignating subparagraphs (E), (F),(G), and (H) as subparagraphs (F), (G), (H),and (I), respectively; and

(3) by inserting after subparagraph (D) thefollowing new subparagraph:

‘‘(E) consult with the Secretary of Energyand make recommendations regarding addi-tional or revised standards for thermal insu-lation and energy efficiency applicable tomanufactured housing;’’.

(b) DUTIES OF THE SECRETARY.—The Sec-retary of Housing and Urban Developmentshall assess the energy performance of manu-factured housing and make recommenda-tions to the National Commission on Manu-factured Housing established under section943 of the Cranston-Gonzalez National Af-fordable Housing Act regarding any thermalinsulation and energy efficiency improve-ments applicable to manufactured housingwhich are technologically feasible and eco-nomically justified. The Secretary shall alsotest the performance and determine the costeffectiveness of manufactured housing con-structed in compliance with the standardsestablished under such section.

(c) EXCEPTION TO FEDERAL PREEMPTION.—Ifthe Secretary of Housing and Urban Develop-ment has not issued, within 1 year after thedate of the enactment of this Act, final regu-lations pursuant to section 604 of the Na-tional Manufactured Housing Constructionand Safety Standards Act of 1974 (42 U.S.C.5403) that establish thermal insulation andenergy efficiency standards for manufac-tured housing that take effect before Janu-ary 1, 1995, then States may establish ther-mal insulation and energy efficiency stand-ards for manufactured housing if such stand-ards are at least as stringent as thermal per-formance standards for manufactured hous-ing contained in the Second Public ReviewDraft of BSR/ASHRAE 90.2P entitled ‘‘En-ergy Efficient Design of Low-Rise Residen-tial Buildings’’ and all public reviews ofIndependent Substantive Changes to suchdocument that have been approved on or be-fore the date of the enactment of this Act.SEC. 105. ENERGY EFFICIENT MORTGAGES.

(a) DEFINITION OF ENERGY EFFICIENT MORT-GAGE.—Section 104 of the Cranston-GonzalezNational Affordable Housing Act (42 U.S.C.12704) is amended by adding at the end thefollowing new paragraph:

‘‘(24) The term ‘energy efficient mortgage’means a mortgage that provides financingincentives for the purchase of energy effi-cient homes, or that provides financing in-centives to make energy efficiency improve-ments in existing homes by incorporatingthe cost of such improvements in the mort-gage.’’.

(b) UNIFORM MORTGAGE FINANCING PLANFOR ENERGY EFFICIENCY.—Section 946 of theCranston-Gonzalez National AffordableHousing Act (42 U.S.C. 12712 note) is amend-ed—

(1) in subsection (a), by striking ‘‘mortgagefinancing incentives for energy efficiency’’and inserting ‘‘energy efficient mortgages(as such term is defined in section 104 of thisAct)’’; and

(2) in subsection (b)—(A) in the second sentence, by inserting ‘‘,

but not be limited to,’’ after ‘‘include’’; and(B) by inserting after the period at the end

of the following new sentence: ‘‘The TaskForce shall determine whether notifying po-tential home purchasers of the availabilityof energy efficient mortgages would promoteenergy efficiency in residential buildings,and if so, the Task Force shall recommendappropriate notification guidelines, andagencies and organizations referred to in the

preceding sentence are authorized to imple-ment such guidelines.’’.SEC. 106. ENERGY EFFICIENT MORTGAGES PILOT

PROGRAM.(a) ESTABLISHMENT OF PILOT PROGRAM.—(1) IN GENERAL.—Not later than 6 months

after the date of enactment of this Act, theSecretary of Housing and Urban Develop-ment (hereafter referred to as the ‘‘Sec-retary’’) shall establish an energy efficientmortgage pilot program in 5 States, to pro-mote the purchase of existing energy effi-cient residential buildings and the installa-tion of cost-effective improvements in exist-ing residential buildings.

(2) PILOT PROGRAM.—The pilot program es-tablished under this subsection shall includethe following criteria, where applicable:

(A) ORIGINATION.—The lender shall origi-nate a housing loan that is insured undertitle II of the National Housing Act in ac-cordance with the applicable requirements.

(B) APPROVAL.—The mortgagor’s base loanapplication shall be approved if the mortga-gor’s income and credit record is found to besatisfactory.

(C) COST OF IMPROVEMENTS.—The cost ofcost-effective energy efficiency improve-ments shall not exceed the greater of—

(i) 5 percent of the property value (not toexceed $8,000); or

(ii) $4,000.(3) AUTHORITY FOR MORTGAGEES.—In grant-

ing mortgages under the pilot program es-tablished pursuant to this subsection, theSecretary shall grant mortgagees the au-thority—

(A) to permit the final loan amount to ex-ceed the loan limits established under titleII of the National Housing Act by an amountnot to exceed 100 percent of the cost of thecost-effective energy efficiency improve-ments, if the mortgagor’s request to add thecost of such improvements is received by themortgagee prior to funding of the base loan;

(B) to hold in escrow all funds provided tothe mortgagor to undertake the energy effi-ciency improvements until the efficiency im-provements are actually installed; and

(C) to transfer or sell the energy efficientmortgage to the appropriate secondary mar-ket agency, after the mortgage is issued, butbefore the energy efficiency improvementsare actually installed.

(4) PROMOTION OF PILOT PROGRAM.—TheSecretary shall encourage participation inthe energy efficient mortgage pilot programby—

(A) making available information to lend-ing agencies and other appropriate authori-ties regarding the availability and benefitsof energy efficient mortgages;

(B) requiring mortgagees and designatedlending authorities to provide written noticeof the availability and benefits of the pilotprogram to mortgagors applying for financ-ing in those States designated by the Sec-retary as participating under the pilot pro-gram; and

(C) requiring each applicant for a mortgageinsured under title II of the National Hous-ing Act in those States participating underthe pilot program to sign a statement thatsuch applicant has been informed of the pro-gram requirements and understands the ben-efits of energy efficient mortgages.

(5) TRAINING PROGRAM.—Not later than 9months after the date of enactment of thisAct, the Secretary, in consultation with theSecretary of Energy, shall establish and im-plement a program for training personnel atrelevant lending agencies, real estate compa-nies, and other appropriate organizations re-garding the benefits of energy efficient mort-gages and the operation of the pilot programunder this subsection.

(6) REPORT.—Not later than 18 monthsafter the date of enactment of this Act, the

Secretary shall prepare and submit a reportto the Congress describing the effectivenessand implementation of the energy efficientmortgage pilot program as described underthis subsection, and assessing the potentialfor expanding the pilot program nationwide.

(b) EXPANSION OF PROGRAM.—Not laterthan the expiration of the 2-year period be-ginning on the date of the implementation ofthe energy efficient mortgage pilot programunder this section, the Secretary of Housingand Urban Development shall expand thepilot program on a nationwide basis andshall expand the program to include new res-idential housing, unless the Secretary deter-mines that either such expansion would notbe practicable, in which case the Secretaryshall submit to the Congress, before the expi-ration of such period, a report explainingwhy either expansion would not be prac-ticable.

(c) DEFINITIONS.—For purposes of this sec-tion:

(1) The term ‘‘base loan’’ means any mort-gage loan for a residential building eligiblefor insurance under title II of the NationalHousing Act or title 38, United States Code,that does not include the cost of cost-effec-tive energy improvements.

(2) The term ‘‘cost-effective’’ means, withrespect to energy efficiency improvements toa residential building, improvements that re-sult in the total present value cost of the im-provements (including any maintenance andrepair expenses) being less than the totalpresent value of the energy saved over theuseful life of the improvement, when 100 per-cent of the cost of improvements is added tothe base loan. For purposes of this para-graph, savings and cost-effectiveness shall bedetermined pursuant to a home energy rat-ing report sufficient for purposes of the Fed-eral National Mortgage Association and theFederal Home Loan Mortgage Corporation,or by other technically accurate methods.

(3) The term ‘‘energy efficient mortgage’’means a mortgage on a residential buildingthat recognizes the energy savings of a homethat has cost-effective energy saving con-struction or improvements (including solarwater heaters, solar-assisted air conditionersand ventilators, super-insulation, and insu-lating glass and film) and that has the effectof not disqualifying a borrower who, but forthe expenditures on energy saving construc-tion or improvements, would otherwise havequalified for a base loan.

(4) The term ‘‘residential building’’ meansany attached or unattached single familyresidence.

(d) RULE OF CONSTRUCTION.—This sectionmay not be construed to affect any otherprograms of the Secretary of Housing andUrban Development for energy-efficientmortgages. The pilot program carried outunder this section shall not replace or resultin the termination of such other programs.

(e) REGULATIONS.—The Secretary shallissue any regulations necessary to carry outthis section not later than the expiration ofthe 180-day period beginning on the date ofthe enactment of this Act. The regulationsshall be issued after notice and opportunityfor public comment pursuant to the provi-sions of section 553 of title 5, United StatesCode (notwithstanding subsections (a)(2),(b)(B), and (d)(3) of such section).

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as may be necessary to carry out thissection.

Subtitle B—UtilitiesSEC. 111. ENCOURAGEMENT OF INVESTMENTS IN

CONSERVATION AND ENERGY EFFI-CIENCY BY ELECTRIC UTILITIES.

(a) AMENDMENT TO THE PUBLIC UTILITYREGULATORY POLICIES ACT.—The Public Util-ity Regulatory Policies Act of 1978 (P.L.95–

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OCTOBER 5T121.25617; 92 Stat. 3117; 16 U.S.C. 2601 and following)is amended by adding the following at theend of section 111(d):

‘‘(7) INTEGRATED RESOURCE PLANNING.—Each electric utility shall employ integratedresource planning. All plans or filings beforea State regulatory authority to meet the re-quirements of this paragraph must be up-dated on a regular basis, must provide theopportunity for public participation andcomment, and contain a requirement thatthe plan be implemented.

‘‘(8) INVESTMENTS IN CONSERVATION AND DE-MAND MANAGEMENT.—The rates allowed to becharged by a State regulated electric utilityshall be such that the utility’s investment inand expenditures for energy conservation,energy efficiency resources, and other de-mand side management measures are atleast as profitable, giving appropriate con-sideration to income lost from reduced salesdue to investments in and expenditures forconservation and efficiency, as its invest-ments in and expenditures for the construc-tion of new generation, transmission, anddistribution equipment. Such energy con-servation, energy efficiency resources andother demand side management measuresshall be appropriately monitored and evalu-ated.

‘‘(9) ENERGY EFFICIENCY INVESTMENTS INPOWER GENERATION AND SUPPLY.— The ratescharged by any electric utility shall be suchthat the utility is encouraged to make in-vestments in, and expenditures for, all cost-effective improvements in the energy effi-ciency of power generation, transmission anddistribution. In considering regulatorychanges to achieve the objectives of thisparagraph, State regulatory authorities andnonregulated electric utilities shall considerthe disincentives caused by existing rate-making policies, and practices, and considerincentives that would encourage bettermaintenance, and investment in more effi-cient power generation, transmission anddistribution equipment.’’.

(b) PROTECTION FOR SMALL BUSINESS.—ThePublic Utility Regulatory Policies Act of1978 (P.L.95-617; 92 Stat. 3117; 16 U.S.C. 2601and following) is amended by inserting thefollowing new paragraph at the end of sub-section 111(c):

‘‘(3) If a State regulatory authority imple-ments a standard established by subsection(d)(7) or (8), such authority shall—

‘‘(A) consider the impact that implementa-tion of such standard would have on smallbusinesses engaged in the design, sale, sup-ply, installation or servicing of energy con-servation, energy efficiency or other demandside management measures, and

‘‘(B) implement such standard so as to as-sure that utility actions would not providesuch utilities with unfair competitive advan-tages over such small businesses.’’.

(c) EFFECTIVE DATE.—Section 112(b) of suchAct is amended by inserting ‘‘(or after theenactment of the Comprehensive NationalEnergy Policy Act in the case of standardsunder paragraphs (7), (8), and (9) of section111(d)’’ after ‘‘Act’’ in both places such wordappears in paragraphs (1) and (2).

(d) DEFINITIONS.—Section 3 of such Act isamended by adding the following new para-graphs at the end thereof:

‘‘(19) The term ‘integrated resource plan-ning’ means, in the case of an electric util-ity, a planning and selection process for newenergy resources that evaluates the fullrange of alternatives, including new generat-ing capacity, power purchases, energy con-servation and efficiency, cogeneration anddistrict heating and cooling applications,and renewable energy resources, in order toprovide adequate and reliable service to itselectric customers at the lowest system cost.The process shall take into account nec-essary features for system operation, such as

diversity, reliability, dispatchability, andother factors of risk; shall take into accountthe ability to verify energy savings achievedthrough energy conservation and efficiencyand the projected durability of such savingsmeasured over time; and shall treat demandand supply resources on a consistent and in-tegrated basis.

‘‘(20) The term ‘system cost’ means all di-rect and quantifiable net costs for an energyresource over its available life, including thecost of production, distribution, transpor-tation, utilization, waste management, andenvironmental compliance.

‘‘(21) The term ‘demand side management’includes load management techniques.’’.

(e) REPORT.—Not later than 2 years afterthe date of the enactment of this Act, theSecretary shall transmit a report to thePresident and to the Congress containing—

(1) a survey of all State laws, regulations,practices, and policies under which Stateregulatory authorities implement the provi-sions of paragraphs (7), (8), and (9) of section111(d) of the Public Utility Regulatory Poli-cies Act of 1978;

(2) an evaluation by the Secretary ofwhether and to what extent, integrated re-source planning is likely to result in—

(A) higher or lower electricity costs to anelectric utility’s ultimate consumers or toclasses or groups of such consumers;

(B) enhanced or reduced reliability of elec-tric service; and

(C) increased or decreased dependence onparticular energy resources; and

(3) a survey of practices and policies underwhich electric cooperatives prepare inte-grated resource plans, submit such plans tothe Rural Electrification Administration andthe extent to which such integrated resourceplanning is reflected in rates charged to cus-tomers.The report shall include an analysis preparedin conjunction with the Federal Trade Com-mission, of the competitive impact of imple-mentation of energy conservation, energy ef-ficiency, and other demand side managementprograms by utilities on small businesses en-gaged in the design, sale, supply, installa-tion, or servicing of similar energy conserva-tion, energy efficiency, or other demand sidemanagement measures and whether any un-fair, deceptive, or predatory acts exist, orare likely to exist, from implementation ofsuch programs.SEC. 112. ENERGY EFFICIENCY GRANTS TO STATE

REGULATORY AUTHORITIES.(a) ENERGY EFFICIENCY GRANTS.—The Sec-

retary is authorized in accordance with theprovisions of this section to provide grantsto State regulatory authorities in an amountnot to exceed $250,000 per authority, for pur-poses of encouraging demand-side manage-ment including energy conservation, energyefficiency and load management techniquesand for meeting the requirements of para-graphs (7), (8), and (9) of section 111(d) of thePublic Utility Regulatory Policies Act of1978 and as a means of meeting gas supplyneeds and to meet the requirements of para-graphs (3) and (4) of section 303(b) of the Pub-lic Utility Regulatory Policies Act of 1978.Such grants may be utilized by a State regu-latory authority to provide financial assist-ance to nonprofit subgrantees of the Depart-ment of Energy’s Weatherization AssistanceProgram in order to facilitate participationby such subgrantees in proceedings of suchregulatory authority to examine energy con-servation, energy efficiency, or other de-mand-side management programs.

(b) PLAN.—A State regulatory authoritywishing to receive a grant under this sectionshall submit a plan to the Secretary thatspecifies the actions such authority proposesto take that would achieve the purposes ofthis section.

(c) SECRETARIAL ACTION.—(1) In determin-ing whether, and in what amount, to providea grant to a State regulatory authorityunder this section the Secretary shall con-sider, in addition to other appropriate fac-tors, the actions proposed by the State regu-latory authority to achieve the purposes ofthis section and to consider implementationof the ratemaking standards established in—

(A) paragraphs (7), (8) and (9) of section111(d) of the Public Utility Regulatory Poli-cies Act of 1978; or

(B) paragraphs (3) and (4) of section 303(b)of the Public Utility Regulatory Policies Actof 1978.

(2) Such actions—(A) shall include procedures to facilitate

the participation of grantees and nonprofitsubgrantees of the Department of Energy’sWeatherization Assistance Program in pro-ceedings of such regulatory authorities ex-amining demand-side management pro-grams; and

(B) shall provide for coverage of the cost ofsuch grantee and subgrantees’ participationin such proceedings.

(d) RECORDKEEPING.—Each State regu-latory authority that receives a grant underthis section shall keep such records as theSecretary shall require.

(e) DEFINITION.—For purposes of this sec-tion, the term ‘‘State regulatory authority’’shall have the same meaning as provided bysection 3 of the Public Utility RegulatoryPolicies Act of 1978 in the case of electricutilities, and such term shall have the samemeaning as provided by section 302 of thePublic Utility Regulatory Policies Act of1978 in the case of gas utilities, except thatin the case of any State without a statewideratemaking authority, such term shall meanthe State energy office.

(g) AUTHORIZATION.—There are authorizedto be appropriated $5,000,000 for each of thefiscal years 1994, 1995 and 1996 to carry outthe purposes of this section.SEC. 113. TENNESSEE VALLEY AUTHORITY

LEAST-COST PLANNING PROGRAM.(a) IN GENERAL.—The Tennessee Valley Au-

thority shall conduct a least-cost planningprogram in accordance with this section.

(b) CONDUCT OF PROGRAM.—(1) IN GENERAL.—In conducting a least-cost

planning program under subsection (a), theTennessee Valley Authority shall employand implement a planning and selectionprocess for new energy resources which eval-uates the full range of existing and incre-mental resources (including new power sup-plies, energy conservation and efficiency,and renewable energy resources) in order toprovide adequate and reliable service to elec-tric customers of the Tennessee Valley Au-thority at the lowest system cost.

(2) PLANNING AND SELECTION PROCESS.—Theplanning and selection process referred to inparagraph (1) shall—

(A) take into account necessary featuresfor system operation, including diversity, re-liability, dispatchability, and other factorsof risk;

(B) take into account the ability to verifyenergy savings achieved through energy con-servation and efficiency and the projecteddurability of such savings measured overtime; and

(C) treat demand and supply resources on aconsistent and integrated basis.

(3) SYSTEM COST DEFINED.—As used in para-graph (1), the term ‘‘system cost’’ means alldirect and quantifiable net costs for an en-ergy resource over its available life, includ-ing the cost of production, transportation,utilization, waste management, environ-mental compliance, and, in the case of im-ported energy resources, maintaining accessto foreign sources of supply.

(c) PARTICIPATION BY DISTRIBUTORS.—


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1992 T121.25(1) IN GENERAL.—In conducting a least-cost

planning program under subsection (a), theTennessee Valley Authority shall—

(A) provide an opportunity for distributorsof the Tennessee Valley Authority to rec-ommend cost-effective energy efficiency op-portunities, rate structure incentives, andrenewable energy proposals for inclusion insuch program; and

(B) encourage and assist such distributorsin the planning and implementation of cost-effective energy efficiency options.

(2) ASSISTANCE.—The Tennessee Valley Au-thority shall provide appropriate assistanceto distributors under paragraph (1)(B). Suchassistance shall, where cost effective, be pro-vided by the Tennessee Valley Authorityacting through, or in cooperation with, anassociation of distributors. Such assistancemay include publications, workshops, con-ferences, one-on-one assistance, financial as-sistance, equipment loans, technology as-sessment studies, marketing studies, andother appropriate mechanisms to transfer in-formation on energy efficiency and renew-able energy options and programs to cus-tomers.

(d) PUBLIC REVIEW AND COMMENT.—Beforethe selection and addition of a major new en-ergy resource on the Tennessee Valley Au-thority system, the Tennessee Valley Au-thority shall provide an opportunity for pub-lic review and comment and shall include adescription of any such action in an annualreport to the President and Congress.

(e) EXEMPTION FROM CERTAIN REQUIRE-MENTS.—The Tennessee Valley Authorityshall not be subject to the least-cost plan-ning requirements contained in section 111(d)of the Public Utility Regulatory Policies Actof 1978 or any similar requirement whichmight arise out of the Tennessee ValleyAuthority’s electric power transactions withthe Southeastern Power Administration.SEC. 114. AMENDMENT OF HOOVER POWER

PLANT ACT.Title II of the Hoover Power Plant Act of

1984 (42 U.S.C. 7275–7276, Public Law 98–381) isamended to read as follows:

‘‘TITLE II—INTEGRATED RESOURCEPLANNING

‘‘Sec. 201. Definitions.‘‘Sec. 202. Regulations to require inte-

grated resource planning.‘‘Sec. 203. Technical assistance.‘‘Sec. 204. Integrated resource plans.‘‘Sec. 205. Miscellaneous provisions.

‘‘SEC. 201. DEFINITIONS.‘‘As used in this title:‘‘(1) The term ‘Administrator’ means the

Administrator of the Western Area PowerAdministration.

‘‘(2) The term ‘integrated resource plan-ning’ means a planning process for new en-ergy resources that evaluates the full rangeof alternatives, including new generating ca-pacity, power purchases, energy conserva-tion and efficiency, cogeneration and districtheating and cooling applications, and renew-able energy resources, in order to provideadequate and reliable service to its electriccustomers at the lowest system cost. Theprocess shall take into account necessaryfeatures for system operation, such as diver-sity, reliability, dispatchability, and otherfactors of risk; shall take into account theability to verify energy savings achievedthrough energy conservation and efficiencyand the projected durability of such savingsmeasured over time; and shall treat demandand supply resources on a consistent and in-tegrated basis.

‘‘(3) The term ‘least cost option’ means anoption for providing reliable electric servicesto electric customers which will, to the ex-tent practicable, minimize life-cycle systemcosts, including adverse environmental ef-fects, of providing such service. To the ex-

tent practicable, energy efficiency and re-newable resources may be given priority inany least-cost option.

‘‘(4) The term ‘long-term firm power serv-ice contract’ means any contract for the saleby Western Area Power Administration offirm capacity, with or without energy, whichis to be delivered over a period of more thanone year.

‘‘(5) The terms ‘customer’ or ‘customers’means any entity or entities purchasing firmcapacity with or without energy, from theWestern Area Power Administration under along-term firm power service contract. Suchterms include parent-type entities and theirdistribution or user members.

‘‘(6) For any customer, the term ‘applica-ble integrated resource plan’ means the inte-grated resource plan approved by the Admin-istrator under this title for that customer.‘‘SEC. 202. REGULATIONS TO REQUIRE INTE-

GRATED RESOURCE PLANNING.‘‘(a) REGULATIONS.—Within 1 year after the

enactment of this section, the Administratorshall, by regulation, revise the Final Amend-ed Guidelines and Acceptance Criteria forCustomer Conservation and Renewable En-ergy Programs published in the Federal Reg-ister on August 21, 1985 (50 F.R. 33892), or anysubsequent amendments thereto, to requireeach customer purchasing electric energyunder a long-term firm power service con-tract with the Western Area Power Adminis-tration to implement, within 3 years afterthe enactment of this section, integrated re-source planning in accordance with the re-quirements of this title.

‘‘(b) CERTAIN SMALL CUSTOMERS.—Notwith-standing subsection (a), for customers withtotal annual energy sales or usage of 25Gigawatt Hours or less which are not mem-bers of a joint action agency or a generationand transmission cooperative with powersupply responsibility, the Administratormay establish different regulations andapply such regulations to customers that theAdministrator finds have limited economic,managerial, and resource capability to con-duct integrated resource planning. The regu-lations under this subsection shall requiresuch customers to consider all reasonable op-portunities to meet their future energy serv-ice requirements using demand-side tech-niques, new renewable resources and otherprograms that will provide retail customerswith electricity at the lowest possible cost,and minimize, to the extent practicable, ad-verse environmental effects.‘‘SEC. 203. TECHNICAL ASSISTANCE.

‘‘The Administrator may provide technicalassistance to customers to, among otherthings, conduct integrated resource plan-ning, implement applicable integrated re-source plans, and otherwise comply with therequirements of this title. Technical assist-ance may include publications, workshops,conferences, one-to-one assistance, equip-ment loans, technology and resource assess-ment studies, marketing studies, and othermechanisms to transfer information on en-ergy efficiency and renewable energy optionsand programs to customers. The Adminis-trator shall give priority to providing tech-nical assistance to customers that have lim-ited capability to conduct integrated re-source planning.‘‘SEC. 204. INTEGRATED RESOURCE PLANS.

‘‘(a) REVIEW BY WESTERN AREA POWER AD-MINISTRATION.—Within 1 year after the en-actment of this section, the Administratorshall, by regulation, revise the Final Amend-ed Guidelines and Acceptance Criteria forCustomer Conservation and Renewable En-ergy Programs published in the Federal Reg-ister on August 21, 1985 (50 F.R. 33892), or anysubsequent amendments thereto, to requireeach customer to submit an integrated re-source plan to the Administrator within 12

months after such regulations are amended.The regulation shall require a revision ofsuch plan to be submitted every 5 years afterthe initial submission. The Administratorshall review the initial plan in accordancewith a schedule established by the Adminis-trator (which schedule will provide for thereview of all initial plans within 24 monthsafter such regulations are amended), andeach revision thereof within 120 days afterhis receipt of the plan or revision and deter-mine whether the customer has in the devel-opment of the plan or revision, compliedwith this title. Plan amendments may besubmitted to the Administrator at any timeand the Administrator shall review eachsuch amendment within 120 days after re-ceipt thereof to determine whether the cus-tomer in amending its plan has compliedwith this title. If the Administrator deter-mines that the customer, in developing itsplan, revision, or amendment, has not com-plied with the requirements of this title, thecustomer shall resubmit the plan at anytime thereafter. Whenever a plan or revisionor amendment is resubmitted the Adminis-trator shall review the plan or revision oramendment within 120 days after his receiptthereof to determine whether the customerhas complied with this title.

‘‘(b) CRITERIA FOR APPROVAL OF INTE-GRATED RESOURCE PLANS.—The Adminis-trator shall approve an integrated resourceplan submitted as required under subsection(a) if, in developing the plan, the customerhas:

‘‘(1) Identified and accurately compared allpracticable energy efficiency and energy sup-ply resource options available to the cus-tomer.

‘‘(2) Included a 2-year action plan and a 5-year action plan which describe specific ac-tions the customer will take to implementits integrated resource plan.

‘‘(3) Designated ‘least-cost options’ to beutilized by the customer for the purpose ofproviding reliable electric service to its re-tail consumers and explained the reasonswhy such options were selected.

‘‘(4) To the extent practicable, minimizedadverse environmental effects of new re-source acquisitions.

‘‘(5) In preparation and development of theplan (and each revision or amendment of theplan) has provided for full public participa-tion, including participation by governingboards.

‘‘(6) Included load forecasting.‘‘(7) Provided methods of validating pre-

dicted performance in order to determinewhether objectives in the plan are being met.

‘‘(8) Met such other criteria as the Admin-istrator shall require.

‘‘(c) USE OF OTHER INTEGRATED RESOURCEPLANS.—Where a customer or group of cus-tomers are implementing integrated re-source planning under a program respondingto Federal, State, or other initiatives, in-cluding integrated resource planning consid-ered and implemented pursuant to section111(d) of the Public Utility Regulatory Poli-cies Act of 1978, in evaluating that cus-tomer’s integrated resource plan under thistitle, the Administrator shall accept suchplan as fulfillment of the requirements ofthis title to the extent such plan substan-tially complies with the requirements of thistitle.

‘‘(d) COMPLIANCE WITH INTEGRATED RE-SOURCE PLANS.—Within 1 year after the en-actment of this section, the Administratorshall, by regulation, revise the Final Amend-ed Guidelines and Acceptance Criteria forCustomer Conservation and Renewable En-ergy Programs published in the Federal Reg-ister on August 21, 1985 (50 F.R. 33892), or anysubsequent amendments thereto, to requireeach customer to fully comply with the ap-plicable integrated resource plan and submit

JOURNAL OF THE

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OCTOBER 5T121.25an annual report to the Administrator (insuch form and containing such informationas the Administrator may require) describ-ing the customer’s progress to the goals es-tablished in such plan. After the initial re-view under subsection (a) the Administratorshall periodically conduct reviews of a rep-resentative sample of applicable integratedresource plans and the customer’s implemen-tation of the applicable integrated resourceplan to determine if the customers are incompliance with their plans. If the Adminis-trator finds a customer out-of-compliance,the Administrator shall impose a surchargeunder this section on all electric energy pur-chased by the customer from the WesternArea Power Administration or reduce suchcustomer’s power allocation by 10 percent,unless the Administrator finds that a goodfaith effort has been made to comply withthe approved plan.

‘‘(e) ENFORCEMENT.—‘‘(1) NO APPROVED PLAN.—If an integrated

resource plan for any customer is not sub-mitted before the date 12 months after theguidelines are amended as required underthis section or if the plan is disapproved bythe Administrator and a revised plan is notresubmitted by the date 9 months after thedate of such disapproval, the Administratorshall impose a surcharge of 10 percent of thepurchase price on all power obtained by thatcustomer from the Western Area Power Ad-ministration after such date. The surchargeshall remain in effect until an integrated re-source plan is approved for that customer. Ifthe plan is not submitted for more than oneyear after the required date, the surchargeshall increase to 20 percent for the secondyear (or any portion thereof prior to ap-proval of the plan) and to 30 percent there-after until the plan is submitted or the con-tract for the purchase of power by such cus-tomer from the Western Area Power Admin-istration terminates.

‘‘(2) FAILURE TO COMPLY WITH APPROVEDPLAN.—After approval by the Administratorof an applicable integrated resource plan forany customer, the Administrator shall im-pose a 10 percent surcharge on all power pur-chased by such customer from the WesternArea Power Administration whenever theAdministrator determines that such cus-tomer’s activities are not consistent withthe applicable integrated resource plan. Thesurcharge shall remain in effect until theAdministrator determines that the cus-tomer’s activities are consistent with the ap-plicable integrated resource plan. The sur-charge shall be increased to 20 percent if thecustomer’s activities are out of compliancefor more than one year and to 30 percentafter more than 2 years, except that no sur-charge shall be imposed if the customer dem-onstrates, to the satisfaction of the Adminis-trator, that a good faith effort has beenmade to comply with the approved plan.

‘‘(3) REDUCTION IN POWER ALLOCATION.—Inthe case of any customer subject to a sur-charge under paragraph (1) or (2), in lieu ofimposing such surcharge the Administratormay reduce such customer’s power alloca-tion from the Western Area Power Adminis-tration by 10 percent. The Administratorshall provide by regulation the terms andconditions under which a power allocationterminated under this subsection may be re-instated.

‘‘(f) INTEGRATED RESOURCE PLANNING CO-OPERATIVES.—With the approval of the Ad-ministrator, customers within any State orregion may form integrated resource plan-ning cooperatives for the purposes of com-plying with this title, and such customersshall be allowed an additional 6 months tosubmit an initial integrated resource plan tothe Administrator.

‘‘(g) CUSTOMERS WITH MORE THAN 1 CON-TRACT.—If more than one long-term firm

power service contract exists between theAdministrator and a customer, only one in-tegrated resource plan shall be required forthat customer under this title.

‘‘(h) PROGRAM REVIEW.—Within 1 year afterJanuary 1, 1999, and at appropriate intervalsthereafter, the Administrator shall initiate apublic process to review the program estab-lished by this section. The Administrator isauthorized at that time to revise the criteriaset forth in section 204(b) to reflect changes,if any, in technology, needs, or other devel-opments.‘‘SEC. 205. MISCELLANEOUS PROVISIONS.

‘‘(a) ENVIRONMENTAL IMPACT STATEMENT.—The provisions of the National Environ-mental Policy Act of 1969 shall apply to ac-tions of the Administrator implementingthis title in the same manner and to thesame extent as such provisions apply toother major Federal actions significantly af-fecting the quality of the human environ-ment.

‘‘(b) ANNUAL REPORTS.—The Administratorshall include in the annual report submittedby the Western Area Power Administration(1) a description of the activities undertakenby the Administrator and by customersunder this title and (2) an estimate of the en-ergy savings and renewable resource benefitsachieved as a result of such activities.

‘‘(c) STATE REGULATED INVESTOR-OWNEDUTILITIES.—Any State regulated electricutility (as defined in section 3(18) of the Pub-lic Utility Regulatory Policies Act of 1978)shall be exempt from the provisions of thistitle.

‘‘(d) RURAL ELECTRIFICATION ADMINISTRA-TION REQUIREMENTS.—Nothing in this titleshall require a customer to take any actioninconsistent with a requirement imposed bythe Rural Electrification Administration’’.SEC. 115. ENCOURAGEMENT OF INVESTMENTS IN

CONSERVATION AND ENERGY EFFI-CIENCY BY GAS UTILITIES.

(a) DEFINITIONS.—Section 302 of the PublicUtility Regulatory Policies Act of 1978 (15U.S.C. 3202) is amended by adding the follow-ing at the end thereof:

‘‘(9) The term ‘integrated resource plan-ning’ means, in the case of a gas utility,planning by the use of any standard, regula-tion, practice, or policy to undertake a sys-tematic comparison between demand-sidemanagement measures and the supply of gasby a gas utility to minimize life-cycle costsof adequate and reliable utility services togas consumers. Integrated resource planningshall take into account necessary featuresfor system operation such as diversity, reli-ability, dispatchability, and other factors ofrisk and shall treat demand and supply togas consumers on a consistent and inte-grated basis.

‘‘(10) The term ‘demand-side management’includes energy conservation, energy effi-ciency, and load management techniques.’’.

(b) IN GENERAL.—Section 303(b) of the Pub-lic Utility Regulatory Policies Act of 1978 (15U.S.C. 3202) is amended by inserting at theend the following new paragraphs:

‘‘(3) INTEGRATED RESOURCE PLANNING.—Each gas utility shall employ, in order toprovide adequate and reliable service to itsgas customers at the lowest system cost. Allplans or filings of a State regulated gas util-ity before a State regulatory authority tomeet the requirements of this paragraphshall (A) be updated on a regular basis, (B)provide the opportunity for public participa-tion and comment, (C) provide for methodsof validating predicted performance, and (D)contain a requirement that the plan be im-plemented after approval of the State regu-latory authority. Subsection (c) shall notapply to this paragraph to the extent that itcould be construed to require the State regu-latory authority to extend the record of a

State proceeding in submitting reports tothe Federal Government.

‘‘(4) INVESTMENTS IN CONSERVATION AND DE-MAND MANAGEMENT.—The rates charged byany State regulated gas utility shall be suchthat the utility’s prudent investments in,and expenditures for, energy conservationand load shifting programs and for other de-mand-side management measures which areconsistent with the findings and purposes ofthe Energy Policy Act of 1992 are at least asprofitable (taking into account the incomelost due to reduced sales resulting from suchprograms) as prudent investments in, and ex-penditures for, the acquisition or construc-tion of supplies and facilities. This objectiverequires that (A) regulators link the utility’snet revenues, at least in part, to the utility’sperformance in implementing cost-effectiveprograms promoted by this section; and (B)regulators ensure that, for purposes of recov-ering fixed costs, including its authorized re-turn, the utility’s performance is not af-fected by reductions in its retail sales vol-umes.’’.

(c) IMPACT ON SMALL BUSINESS.—Section303 of such Act is amended by inserting thefollowing new subsection at the end thereof:

‘‘(d) SMALL BUSINESS IMPACTS.—If a Stateregulatory authority implements a standardestablished by subsection (b) (3) or (4), suchauthority shall—

‘‘(1) consider the impact that implementa-tion of such standard would have on smallbusinesses engaged in the design, sale, sup-ply, installation, or servicing of energy con-servation, energy efficiency, or other de-mand-side management measures, and

‘‘(2) implement such standard so as to as-sure that utility actions would not providesuch utilities with unfair competitive advan-tages over such small businesses.’’.

(d) EFFECTIVE DATE.—Section 303(a) of suchAct is amended by inserting ‘‘(or after theenactment of the Energy Policy Act of 1992in the case of standards under paragraphs (3),and (4) of subsection (b))’’ after ‘‘Act’’ and bystriking out ‘‘standard established by sub-section (b)(2)’’ in paragraph (2) and inserting‘‘standards established by paragraphs (2), (3)and (4) of subsection (b)’’.

(e) REPORT.—The report under section111(e) of this Act transmitted by the Sec-retary of Energy to the President and to theCongress shall contain a survey of all Statelaws, regulations, practices, and policiesunder which State regulatory authoritiesimplement the provisions of paragraphs (3)and (4) of section 303(b) of the Public UtilityRegulatory Policies Act of 1978. The reportshall include an analysis, prepared in con-junction, with the Federal Trade Commis-sion, of the competitive impact of implemen-tation of energy conservation, energy effi-ciency, and other demand side managementprograms by gas utilities on small businessesengaged in the design, sale, supply, installa-tion, or servicing of similar energy conserva-tion, energy efficiency, or other demand-sidemanagement measures and whether any un-fair, deceptive, or predatory acts or practicesexist, or are likely to exist, from implemen-tation of such programs.Subtitle C—Appliance and Equipment Energy

Efficiency StandardsSEC. 121. ENERGY EFFICIENCY LABELING FOR

WINDOWS AND WINDOW SYSTEMS.(a) IN GENERAL.—(1) The Secretary shall,

after consulting with the National Fenestra-tion Rating Council, industry representa-tives, and other appropriate organizations,provide financial assistance to support a vol-untary national window rating program thatwill develop energy ratings and labels forwindows and window systems.

(2) Such rating program shall include—(A) specifications for testing procedures

and labels that will enable window buyers to


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1992 T121.25make more informed purchasing decisionsabout the energy efficiency of windows andwindow systems; and

(B) information (which may be dissemi-nated through catalogs, trade publications,labels, or other mechanisms) that will allowwindow buyers to assess the energy con-sumption and potential cost savings of alter-native window products.

(3) Such rating program shall be developedby the National Fenestration Rating Councilaccording to commonly accepted proceduresfor the development of national testing pro-cedures and labeling programs.

(b) MONITORING.—The Secretary shall mon-itor and evaluate the efforts of the NationalFenestration Rating Council and, not laterthan one year after the date of the enact-ment of this Act, make a determination asto whether the program developed by theCouncil is consistent with the objectives ofsubsection (a).

(c) ALTERNATIVE SYSTEM.—(1) If the Sec-retary makes a determination under sub-section (b) that a voluntary national windowrating program consistent with the objec-tives of subsection (a) has not been devel-oped, the Secretary shall, after consultationwith the National Institute of Standards andTechnology, develop, not later than twoyears after such determination, test proce-dures under section 323 of the Energy Policyand Conservation Act (42 U.S.C. 6293) for win-dows and window systems.

(2) Not later than one year after the Sec-retary develops test procedures under para-graph (1), the Federal Trade Commission(hereafter in this section referred to as the‘‘Commission’’) shall prescribe labeling rulesunder section 324 of such Act (42 U.S.C. 6294)for those windows and window systems forwhich the Secretary has prescribed test pro-cedures under paragraph (1) except that,with respect to any type of window or win-dow system (or class thereof), the Secretarymay determine that such labeling is nottechnologically feasible or economically jus-tified or is not likely to assist consumers inmaking purchasing decisions.

(3) For purposes of sections 323, 324, and 327of such Act, each product for which the Sec-retary has established test procedures or la-beling rules pursuant to this subsection shallbe considered a new covered product undersection 322 of such Act (42 U.S.C. 6292) to theextent necessary to carry out this sub-section.

(4) For purposes of section 327(a) of suchAct, the term ‘‘this part’’ includes this sub-section to the extent necessary to carry outthis subsection.SEC. 122. ENERGY CONSERVATION REQUIRE-

MENTS FOR CERTAIN COMMERCIALAND INDUSTRIAL EQUIPMENT.

(a) DEFINITIONS.—Section 340 of the EnergyPolicy and Conservation Act (42 U.S.C. 6311)is amended—

(1) in paragraph (1)—(A) by redesignating subparagraph (B) as

subparagraph (G); and(B) by inserting after subparagraph (A) the

following:‘‘(B) Small commercial package air condi-

tioning and heating equipment.‘‘(C) Large commercial package air condi-

tioning and heating equipment.‘‘(D) Packaged terminal air-conditioners

and packaged terminal heat pumps.‘‘(E) Warm air furnaces and packaged boil-

ers.‘‘(F) Storage water heaters, instantaneous

water heaters, and unfired hot water storagetanks.’’; and

(2) in paragraph (2)(B)—(A) by striking out ‘‘pumps)’’ and inserting

in lieu thereof ‘‘pumps, small and large com-mercial package air conditioning and heat-ing equipment, packaged terminal air-condi-tioners, packaged terminal heat pumps,

warm air furnaces, packaged boilers, storagewater heaters, instantaneous water heaters,and unfired hot water storage tanks)’’; and

(B) by striking out clauses (v) and (xi) andredesignating clauses (vi), (vii), (viii), (ix),(x), (xii), (xiii), and (xiv) as clauses (v), (vi),(vii), (viii), (ix), (x), (xi), and (xii), respec-tively; and

(3) by adding at the end the following:‘‘(8) The term ‘small commercial package

air conditioning and heating equipment’means air-cooled, water-cooled, evapo-ratively-cooled, or water source (not includ-ing ground water source) electrically oper-ated, unitary central air conditioners andcentral air conditioning heat pumps for com-mercial application which are rated below135,000 Btu per hour (cooling capacity).

‘‘(9) The term ‘large commercial packageair conditioning and heating equipment’means air-cooled, water-cooled, evapo-ratively-cooled, or water source (not includ-ing ground water source) electrically oper-ated, unitary central air conditioners andcentral air conditioning heat pumps for com-mercial application which are rated at orabove 135,000 Btu per hour and below 240,000Btu per hour (cooling capacity).

‘‘(10)(A) The term ‘packaged terminal airconditioner’ means a wall sleeve and a sepa-rate unencased combination of heating andcooling assemblies specified by the builderand intended for mounting through the wall.It includes a prime source of refrigeration,separable outdoor louvers, forced ventila-tion, and heating availability by builder’schoice of hot water, steam, or electricity.

‘‘(B) The term ‘packaged terminal heatpump’ means a packaged terminal air condi-tioner that utilizes reverse cycle refrigera-tion as its prime heat source and should havesupplementary heat source available tobuilders with the choice of hot water, steam,or electric resistant heat.

‘‘(11)(A) The term ‘warm air furnace’means a self-contained oil- or gas-fired fur-nace designed to supply heated air throughducts to spaces that require it and includescombination warm air furnace/electric airconditioning units but does not include unitheaters and duct furnaces.

‘‘(B) The term ‘packaged boiler’ means aboiler that is shipped complete with heatingequipment, mechanical draft equipment, andautomatic controls; usually shipped in oneor more sections.

‘‘(12)(A) The term ‘storage water heater’means a water heater that heats and storeswater within the appliance at athermostatically controlled temperature fordelivery on demand. Such term does not in-clude units with an input rating of 4000 Btuper hour or more per gallon of stored water.

‘‘(B) The term ‘instantaneous water heat-er’ means a water heater that has an inputrating of at least 4000 Btu per hour per gallonof stored water.

‘‘(C) The term ‘unfired hot water storagetank’ means a tank used to store water thatis heated externally.

‘‘(13)(A) The term ‘electric motor’ meansany motor which is a general purpose T-frame, single-speed, foot-mounting, poly-phase squirrel-cage induction motor of theNational Electrical Manufacturers Associa-tion, Design A and B, continuous rated, oper-ating on 230/460 volts and constant 60 Hertzline power as defined in NEMA StandardsPublication MG1–1987.

‘‘(B) The term ‘definite purpose motor’means any motor designed in standard rat-ings with standard operating characteristicsor standard mechanical construction for useunder service conditions other than usual orfor use on a particular type of applicationand which cannot be used in most generalpurpose applications.

‘‘(C) The term ‘special purpose motor’means any motor, other than a general pur-

pose motor or definite purpose motor, whichhas special operating characteristics or spe-cial mechanical construction, or both, de-signed for a particular application.

‘‘(D) The term ‘open motor’ means a motorhaving ventilating openings which permitpassage of external cooling air over andaround the windings of the machine.

‘‘(E) The term ‘enclosed motor’ means amotor so enclosed as to prevent the free ex-change of air between the inside and outsideof the case but not sufficiently enclosed tobe termed airtight.

‘‘(F) The term ‘small electric motor’means a NEMA general purpose alternatingcurrent single-speed induction motor, builtin a two-digit frame number series in accord-ance with NEMA Standards PublicationMG1–1987.

‘‘(G) The term ‘efficiency’ when used withrespect to an electric motor means the ratioof an electric motor’s useful power output toits total power input, expressed in percent-age.

‘‘(H) The term ‘nominal full load effi-ciency’ means the average efficiency of apopulation of motors of duplicate design asdetermined in accordance with NEMA Stand-ards Publication MG1–1987.

‘‘(14) The term ‘ASHRAE’ means the Amer-ican Society of Heating, Refrigerating, andAir Conditioning Engineers.

‘‘(15) The term ‘IES’ means the Illuminat-ing Engineering Society of North America.

‘‘(16) The term ‘NEMA’ means the NationalElectrical Manufacturers Association.

‘‘(17) The term ‘IEEE’ means the Instituteof Electrical and Electronics Engineers.

‘‘(18) The term ‘energy conservation stand-ard’ means—

‘‘(A) a performance standard that pre-scribes a minimum level of energy efficiencyor a maximum quantity of energy use for aproduct; or

‘‘(B) a design requirement for a product.’’.(b) TEST PROCEDURES.—(1) Section 343(a) of

such Act (42 U.S.C. 6314) is amended—(A) by striking out paragraph (1) and in-

serting in lieu thereof the following:‘‘(1) The Secretary may conduct an evalua-

tion of a class of covered equipment and mayprescribe test procedures for such class in ac-cordance with the provisions of this sec-tion.’’; and

(B) by adding at the end the following newparagraphs:

‘‘(4)(A) With respect to small commercialpackage air conditioning and heating equip-ment, large commercial package air condi-tioning and heating equipment, packagedterminal air conditioners, packaged terminalheat pumps, warm-air furnaces, packagedboilers, storage water heaters, instantaneouswater heaters, and unfired hot water storagetanks to which standards are applicableunder section 342, the test procedures shallbe those generally accepted industry testingprocedures or rating procedures developed orrecognized by the Air-Conditioning and Re-frigeration Institute or by the American So-ciety of Heating, Refrigerating and Air Con-ditioning Engineers, as referenced inASHRAE/IES Standard 90.1 and in effect onJune 30, 1992.

‘‘(B) If such an industry test procedure orrating procedure for small commercial pack-age air conditioning and heating equipment,large commercial package air conditioningand heating equipment, packaged terminalair conditioners, packaged terminal heatpumps, warm-air furnaces, packaged boilers,storage water heaters, instantaneous waterheaters, or unfired hot water storage tanksis amended, the Secretary shall amend thetest procedure for the product as necessaryto be consistent with the amended industrytest procedure or rating procedure unless theSecretary determines, by rule, published inthe Federal Register and supported by clear

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OCTOBER 5T121.25and convincing evidence, that to do so wouldnot meet the requirements for test proce-dures described in paragraphs (2) and (3) ofthis subsection.

‘‘(C) If the Secretary prescribes a rule con-taining such a determination, the rule mayestablish an amended test procedure for suchproduct that meets the requirements of para-graphs (2) and (3) of this subsection. In estab-lishing any amended test procedure underthis subparagraph or subparagraph (B), theSecretary shall follow the procedures andmeet the requirements specified in section323(e).

‘‘(5)(A) With respect to electric motors towhich standards are applicable under section342, the test procedures shall be the test pro-cedures specified in NEMA Standards Publi-cation MG1–1987 and IEEE Standard 112 TestMethod B for motor efficiency, as in effecton the date of the enactment of the EnergyPolicy Act of 1992.

‘‘(B) If the test procedure requirements ofNEMA Standards Publication MG–1987 andIEEE Standard 112 Test Method B for motorefficiency are amended, the Secretary shallamend the test procedures established bysubparagraph (A) to conform to such amend-ed test procedure requirements unless theSecretary determines, by rule, published inthe Federal Register and supported by clearand convincing evidence, that to do so wouldnot meet the requirements for test proce-dures described in paragraphs (2) and (3) ofthis subsection.

‘‘(C) If the Secretary prescribes a rule con-taining such a determination, the rule mayestablish amended test procedures for suchelectric motors that meets the requirementsof paragraphs (2) and (3) of this subsection.In establishing any amended test procedureunder this subparagraph or subparagraph(B), the Secretary shall follow the proce-dures and meet the requirements specified insection 323(e).’’.

(2) The second subsection designated assubsection (d) of section 343 of such Act (42U.S.C. 6314(d)(1)) is amended in paragraph (1)in the material preceding subparagraph (A),by inserting after ‘‘180 days’’ the following:‘‘(or, in the case of small commercial pack-age air conditioning and heating equipment,large commercial package air conditioningand heating equipment, packaged terminalair conditioners, packaged terminal heatpumps, warm-air furnaces, packaged boilers,storage water heaters, instantaneous waterheaters, and unfired hot water storage tanks,360 days)’’.

(c) LABELING.—Section 344 of such Act (42U.S.C. 6315) is amended—

(1) in subsection (a), by striking out ‘‘may’’and inserting in lieu thereof ‘‘shall’’;

(2) in subsection (c), by striking out ‘‘may’’in the material preceding paragraph (1) andinserting in lieu thereof ‘‘shall’’;

(3) by redesignating subsections (d), (e), (f),(g), (h), and (i) as subsections (f), (g), (h), (i),(j), and (k), respectively; and

(4) by inserting after subsection (c), thefollowing new subsections:

‘‘(d) Subject to subsection (h), not laterthan 12 months after the Secretary estab-lishes test procedures for electric motorsunder section 343, the Secretary shall pre-scribe labeling rules under this section appli-cable to electric motors taking into consid-eration NEMA Standards Publication MG1–1987. Such rules shall provide that the label-ing of any electric motor manufactured afterthe 12-month period beginning on the datethe Secretary prescribes such labeling rules,shall—

‘‘(1) indicate the energy efficiency of themotor on the permanent nameplate attachedto such motor;

‘‘(2) prominently display the energy effi-ciency of the motor in equipment catalogsand other material used to market the equip-ment; and

‘‘(3) include such other markings as theSecretary determines necessary solely to fa-cilitate enforcement of the standards estab-lished for electric motors under section 342.

‘‘(e) Subject to subsection (h), not laterthan 12 months after the Secretary estab-lishes test procedures for small commercialpackage air conditioning and heating equip-ment, large commercial package air condi-tioning and heating equipment, packagedterminal air conditioners, packaged terminalheat pumps, warm-air furnaces, packagedboilers, storage water heaters, instantaneouswater heaters, and unfired hot water storagetanks under section 343, the Secretary shallprescribe labeling rules under this sectionfor such equipment. Such rules shall providethat the labeling of any small commercialpackage air conditioning and heating equip-ment, large commercial package air condi-tioning and heating equipment, packagedterminal air conditioner, packaged terminalheat pump, warm-air furnace, packaged boil-er, storage water heater, instantaneouswater heater, and unfired hot water storagetank manufactured after the 12-month periodbeginning on the date the Secretary pre-scribes such rules shall—

‘‘(1) indicate the energy efficiency of theequipment on the permanent nameplate at-tached to such equipment or other nearbypermanent marking;

‘‘(2) prominently display the energy effi-ciency of the equipment in new equipmentcatalogs used by the manufacturer to adver-tise the equipment; and

‘‘(3) include such other markings as theSecretary determines necessary solely to fa-cilitate enforcement of the standards estab-lished for such equipment under section342.’’.

(d) STANDARDS.—Section 342 of such Act isamended to read as follows:

‘‘STANDARDS

‘‘SEC. 342. (a) SMALL AND LARGE COMMER-CIAL PACKAGE AIR CONDITIONING AND HEATINGEQUIPMENT, PACKAGED TERMINAL AIR CONDI-TIONERS AND HEAT PUMPS, WARM-AIR FUR-NACES, PACKAGED BOILERS, STORAGE WATERHEATERS, INSTANTANEOUS WATER HEATERS,AND UNFIRED HOT WATER STORAGE TANKS.—(1) Each small commercial package air con-ditioning and heating equipment manufac-tured on or after January 1, 1994, shall meetthe following standard levels:

‘‘(A) The minimum seasonal energy effi-ciency ratio of air-cooled three-phase elec-tric central air conditioners and central airconditioning heat pumps less than 65,000 Btuper hour (cooling capacity), split systems,shall be 10.0.

‘‘(B) The minimum seasonal energy effi-ciency ratio of air-cooled three-phase elec-tric central air conditioners and central airconditioning heat pumps less than 65,000 Btuper hour (cooling capacity), single package,shall be 9.7.

‘‘(C) The minimum energy efficiency ratioof air-cooled central air conditioners andcentral air conditioning heat pumps at orabove 65,000 Btu per hour (cooling capacity)and less than 135,000 Btu per hour (coolingcapacity) shall be 8.9 (at a standard rating of95 degrees F db).

‘‘(D) The minimum heating seasonal per-formance factor of air-cooled three-phaseelectric central air conditioning heat pumpsless than 65,000 Btu per hour (cooling capac-ity), split systems, shall be 6.8.

‘‘(E) The minimum heating seasonal per-formance factor of air-cooled three-phaseelectric central air conditioning heat pumpsless than 65,000 Btu per hour (cooling capac-ity), single package, shall be 6.6.

‘‘(F) The minimum coefficient of perform-ance in the heating mode of air-cooled cen-tral air conditioning heat pumps at or above65,000 Btu per hour (cooling capacity) and

less than 135,000 Btu per hour (cooling capac-ity) shall be 3.0 (at a high temperature rat-ing of 47 degrees F db).

‘‘(G) The minimum energy efficiency ratioof water-cooled, evaporatively-cooled andwater-source central air conditioners andcentral air conditioning heat pumps lessthan 65,000 Btu per hour (cooling capacity)shall be 9.3 (at a standard rating of 95 de-grees F db, outdoor temperature for evapo-ratively cooled equipment, and 85 degreesFahrenheit entering water temperature forwater-source and water-cooled equipment).

‘‘(H) The minimum energy efficiency ratioof water-cooled, evaporatively-cooled andwater-source central air conditioners andcentral air conditioning heat pumps at orabove 65,000 Btu per hour (cooling capacity)and less than 135,000 Btu per hour (coolingcapacity) shall be 10.5 (at a standard ratingof 95 degrees F db, outdoor temperature forevaporatively cooled equipment, and 85 de-grees Fahrenheit entering water tempera-ture for water source and water-cooledequipment).

‘‘(I) The minimum coefficient of perform-ance in the heating mode of water-sourceheat pumps less than 135,000 Btu per hour(cooling capacity) shall be 3.8 (at a standardrating of 70 degrees Fahrenheit enteringwater).

‘‘(2) Each large commercial package airconditioning and heating equipment manu-factured on or after January 1, 1995, shallmeet the following standard levels:

‘‘(A) The minimum energy efficiency ratioof air-cooled central air conditioners andcentral air conditioning heat pumps at orabove 135,000 Btu per hour (cooling capacity)and less than 240,000 Btu per hour (coolingcapacity) shall be 8.5 (at a standard rating of95 degrees F db).

‘‘(B) The minimum coefficient of perform-ance in the heating mode of air-cooled cen-tral air conditioning heat pumps at or above135,000 Btu per hour (cooling capacity) andless than 240,000 Btu per hour (cooling capac-ity) shall be 2.9.

‘‘(C) The minimum energy efficiency ratioof water- and evaporatively-cooled centralair conditioners and central air conditioningheat pumps at or above 135,000 Btu per hour(cooling capacity) and less than 240,000 Btuper hour (cooling capacity) shall be 9.6 (ac-cording to ARI Standard 360-86).

‘‘(3) Each packaged terminal air condi-tioner and packaged terminal heat pumpmanufactured on or after January 1, 1994,shall meet the following standard levels:

‘‘(A) The minimum energy efficiency ratio(EER) of packaged terminal air conditionersand packaged terminal heat pumps in thecooling mode shall be 10.0 — (0.16 x Capacity[in thousands of Btu per hour at a standardrating of 95 degrees F db, outdoor tempera-ture]). If a unit has a capacity of less than7,000 Btu per hour, then 7,000 Btu per hourshall be used in the calculation. If a unit hasa capacity of greater than 15,000 Btu perhour, then 15,000 Btu per hour shall be usedin the calculation.

‘‘(B) The minimum coefficient of perform-ance (COP) of packaged terminal heat pumpsin the heating mode shall be 1.3 + (0.16 x theminimum cooling EER as specified in sub-paragraph (A)) (at a standard rating of 47 de-grees F db).

‘‘(4) Each warm air furnace and packagedboiler manufactured on or after January 1,1994, shall meet the following standard lev-els:

‘‘(A) The minimum thermal efficiency atthe maximum rated capacity of gas-firedwarm-air furnaces with capacity of 225,000Btu per hour or more shall be 80 percent.

‘‘(B) The minimum thermal efficiency atthe maximum rated capacity of oil-fired


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1992 T121.25warm-air furnaces with capacity of 225,000Btu per hour or more shall be 81 percent.

‘‘(C) The minimum combustion efficiencyat the maximum rated capacity of gas-firedpackaged boilers with capacity of 300,000 Btuper hour or more shall be 80 percent.

‘‘(D) The minimum combustion efficiencyat the maximum rated capacity of oil-firedpackaged boilers with capacity of 300,000 Btuper hour or more shall be 83 percent.

‘‘(5) Each storage water heater, instanta-neous water heater, and unfired water stor-age tank manufactured on or after January1, 1994, shall meet the following standard lev-els:

‘‘(A) Except as provided in subparagraph(G), the maximum standby loss, in percentper hour, of electric storage water heatersshall be 0.30 + (27/Measured Storage Volume[in gallons]).

‘‘(B) Except as provided in subparagraph(G), the maximum standby loss, in percentper hour, of gas- and oil-fired storage waterheaters with input ratings of 155,000 Btu perhour or less shall be 1.30 + (114/MeasuredStorage Volume [in gallons]). The minimumthermal efficiency of such units shall be 78percent.

‘‘(C) Except as provided in subparagraph(G), the maximum standby loss, in percentper hour, of gas- and oil-fired storage waterheaters with input ratings of more than155,000 Btu per hour shall be 1.30 + (95/Meas-ured Storage Volume [in gallons]). The mini-mum thermal efficiency of such units shallbe 78 percent.

‘‘(D) The minimum thermal efficiency ofinstantaneous water heaters with a storagevolume of less than 10 gallons shall be 80 per-cent.

‘‘(E) Except as provided in subparagraph(G), the minimum thermal efficiency of in-stantaneous water heaters with a storagevolume of 10 gallons or more shall be 77 per-cent. The maximum standby loss, in percent/hour, of such units shall be 2.30 + (67/Meas-ured Storage Volume [in gallons]).

‘‘(F) Except as provided in subparagraph(G), the maximum heat loss of unfired hotwater storage tanks shall be 6.5 Btu per hourper square foot of tank surface area.

‘‘(G) Storage water heaters and hot waterstorage tanks having more than 140 gallonsof storage capacity need not meet the stand-by loss or heat loss requirements specified insubparagraphs (A) through (C) and subpara-graphs (E) and (F) if the tank surface area isthermally insulated to R–12.5 and if a stand-ing pilot light is not used.

‘‘(6)(A) If ASHRAE/IES Standard 90.1, as ineffect on the date of enactment of the En-ergy Policy Act of 1992, is amended with re-spect to any small commercial package airconditioning and heating equipment, largecommercial package air conditioning andheating equipment, packaged terminal airconditioners, packaged terminal heat pumps,warm-air furnaces, packaged boilers, storagewater heaters, instantaneous water heaters,or unfired hot water storage tanks, the Sec-retary shall establish an amended uniformnational standard for that product at theminimum level for each effective date speci-fied in the amended ASHRAE/IES Standard90.1, unless the Secretary determines, by rulepublished in the Federal Register and sup-ported by clear and convincing evidence,that adoption of a uniform national standardmore stringent than such amended ASHRAE/IES Standard 90.1 for such product would re-sult in significant additional conservation ofenergy and is technologically feasible andeconomically justified.

‘‘(B)(i) If the Secretary issues a rule con-taining such a determination, the rule shallestablish such amended standard. In deter-mining whether a standard is economicallyjustified for the purposes of subparagraph(A), the Secretary shall, after receiving

views and comments furnished with respectto the proposed standard, determine whetherthe benefits of the standard exceed its bur-dens by, to the greatest extent practicable,considering—

‘‘(I) the economic impact of the standardon the manufacturers and on the consumersof the products subject to such standard;

‘‘(II) the savings in operating coststhroughout the estimated average life of theproduct in the type (or class) compared toany increase in the price of, or in the initialcharges for, or maintenance expenses of, theproducts which are likely to result from theimposition of the standard;

‘‘(III) the total projected amount of energysavings likely to result directly from the im-position of the standard;

‘‘(IV) any lessening of the utility or theperformance of the products likely to resultfrom the imposition of the standard;

‘‘(V) the impact of any lessening of com-petition, as determined in writing by the At-torney General, that is likely to result fromthe imposition of the standard;

‘‘(VI) the need for national energy con-servation; and

‘‘(VII) other factors the Secretary consid-ers relevant.

‘‘(ii) The Secretary may not prescribe anyamended standard under this paragraphwhich increases the maximum allowable en-ergy use, or decreases the minimum requiredenergy efficiency, of a covered product. TheSecretary may not prescribe an amendedstandard under this subparagraph if the Sec-retary finds (and publishes such finding) thatinterested persons have established by a pre-ponderance of the evidence that a standard islikely to result in the unavailability in theUnited States in any product type (or class)of performance characteristics (including re-liability), features, sizes, capacities, and vol-umes that are substantially the same asthose generally available in the UnitedStates at the time of the Secretary’s finding.The failure of some types (or classes) to meetthis criterion shall not affect the Secretary’sdetermination of whether to prescribe astandard for other types or classes.

‘‘(C) A standard amended by the Secretaryunder this paragraph shall become effectivefor products manufactured—

‘‘(i) with respect to small commercialpackage air conditioning and heating equip-ment, packaged terminal air conditioners,packaged terminal heat pumps, warm-airfurnaces, packaged boilers, storage waterheaters, instantaneous water heaters, andunfired hot water storage tanks, on or aftera date which is two years after the effectivedate of the applicable minimum energy effi-ciency requirement in the amendedASHRAE/IES standard referred to in sub-paragraph (A); and

‘‘(ii) with respect to large commercialpackage air conditioning and heating equip-ment, on or after a date which is three yearsafter the effective date of the applicableminimum energy efficiency requirement inthe amended ASHRAE/IES standard referredto in subparagraph (A);except that an energy conservation standardamended by the Secretary pursuant to a ruleunder subparagraph (B) shall become effec-tive for products manufactured on or after adate which is four years after the date suchrule is published in the Federal Register.

‘‘(b) ELECTRIC MOTORS.—(1) Except for defi-nite purpose motors, special purpose motors,and those motors exempted by the Secretaryunder paragraph (2), each electric motormanufactured (alone or as a component ofanother piece of equipment) after the 60-month period beginning on the date of theenactment of this subsection, or in the caseof an electric motor which requires listing orcertification by a nationally recognized safe-

ty testing laboratory, after the 84-month pe-riod beginning on such date, shall have anominal full load efficiency of not less thanthe following:

‘‘Nominal Full-Load Efficiency

Open Motors Closed Motors

‘‘Number ofpoles 6 4 2 6 4 2

Motor Horse-power

1 .................... 80.0 82.5 ...... 80.0 82.5 75.51.5 .................. 84.0 84.0 82.5 85.5 84.0 82.52 .................... 85.5 84.0 84.0 86.5 84.0 84.03 .................... 86.5 86.5 84.0 87.5 87.5 85.55 .................... 87.5 87.5 85.5 87.5 87.5 87.57.5 .................. 88.5 88.5 87.5 89.5 89.5 88.510 ................... 90.2 89.5 88.5 89.5 89.5 89.515 ................... 90.2 91.0 89.5 90.2 91.0 90.220 ................... 91.0 91.0 90.2 90.2 91.0 90.225 ................... 91.7 91.7 91.0 91.7 92.4 91.030 ................... 92.4 92.4 91.0 91.7 92.4 91.040 ................... 93.0 93.0 91.7 93.0 93.0 91.750 ................... 93.0 93.0 92.4 93.0 93.0 92.460 ................... 93.6 93.6 93.0 93.6 93.6 93.075 ................... 93.6 94.1 93.0 93.6 94.1 93.0100 ................. 94.1 94.1 93.0 94.1 94.5 93.6125 ................. 94.1 94.5 93.6 94.1 94.5 94.5150 ................. 94.5 95.0 93.6 95.0 95.0 94.5200 ................. 94.5 95.0 94.5 95.0 95.0 95.0

‘‘(2)(A) The Secretary may, by rule, pro-vide that the standards specified in para-graph (1) shall not apply to certain types orclasses of electric motors if—

‘‘(i) compliance with such standards wouldnot result in significant energy savings be-cause such motors cannot be used in mostgeneral purpose applications or are very un-likely to be used in most general purpose ap-plications; and

‘‘(ii) standards for such motors would notbe technologically feasible or economicallyjustified.

‘‘(B) Not later than one year after the dateof the enactment of this subsection, a manu-facturer seeking an exemption under thisparagraph with respect to a type or class ofelectric motor developed on or before thedate of the enactment of such subsectionshall submit a petition to the Secretary re-questing such exemption. Such petition shallinclude evidence that the type or class ofmotor meets the criteria for exemption spec-ified in subparagraph (A).

‘‘(C) Not later than two years after thedate of the enactment of this subsection, theSecretary shall rule on each petition for ex-emption submitted pursuant to subpara-graph (B). In making such ruling, the Sec-retary shall afford an opportunity for publiccomment.

‘‘(D) Manufacturers of types or classes ofmotors developed after the date of the enact-ment of this subsection to which standardsunder paragraph (1) would be applicable maypetition the Secretary for exemptions fromcompliance with such standards based on thecriteria specified in subparagraph (A).

‘‘(3)(A) The Secretary shall publish a finalrule no later than the end of the 24-monthperiod beginning on the effective date of thestandards established under paragraph (1) todetermine if such standards should beamended. Such rule shall provide that anyamendment shall apply to electric motorsmanufactured on or after a date which is fiveyears after the effective date of the stand-ards established under paragraph (1).

‘‘(B) The Secretary shall publish a finalrule no later than 24 months after the effec-tive date of the previous final rule to deter-mine whether to amend the standards in ef-fect for such product. Any such amendmentshall apply to electric motors manufacturedafter a date which is five years after—

‘‘(i) the effective date of the previousamendment; or

‘‘(ii) if the previous final rule did notamend the standards, the earliest date by

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OCTOBER 5T121.25which a previous amendment could havebeen effective.’’.

(e) ADMINISTRATION, PENALTIES, ENFORCE-MENT, AND PREEMPTION.—(1) Section 345(a) ofsuch Act (42 U.S.C. 6316(a)) is amended—

(A) in the material preceding paragraph(1)—

(i) by inserting after ‘‘to this part’’ the fol-lowing: ‘‘(other than the equipment specifiedin subparagraphs (B), (C), (D), (E), and (F) ofsection 340(1))’’; and

(ii) by striking out ‘‘and sections 328’’ andinserting in lieu thereof ‘‘, the provisions ofsubsections (l) through (s) of section 325, andsections 327’’;

(B) in paragraph (1)—(i) by striking out ‘‘and 324’’ and inserting

in lieu thereof ‘‘, 324, and 325’’; and(ii) by striking out ‘‘343 and 344, respec-

tively’’ and inserting in lieu thereof ‘‘343,344, and 342, respectively’’;

(C) in paragraph (3), by striking out ‘‘and’’at the end thereof;

(D) in paragraph (4), by striking out the pe-riod and inserting in lieu thereof a semi-colon; and

(E) by adding after paragraph (4) the fol-lowing new paragraphs:

‘‘(5) section 327(a) shall be applied, in thecase of electric motors, as if the NationalAppliance Energy Conservation Act of 1987was the Energy Policy Act of 1992;

‘‘(6) section 327(b)(1) shall be applied as ifelectric motors were fluorescent lamp bal-lasts and as if the National Appliance En-ergy Conservation Amendments of 1988 werethe Energy Policy Act of 1992;

‘‘(7) section 327(b)(4) shall be applied as ifelectric motors were fluorescent lamp bal-lasts and as if paragraph (5) of section 325(g)were section 342; and

‘‘(8) notwithstanding any other provisionof law, a regulation or other requirementadopted by a State or subdivision of a Statecontained in a State or local building codefor new construction concerning the energyefficiency or energy use of an electric motorcovered under this part is not superseded bythe standards for such electric motor estab-lished or prescribed under section 342(b) ifsuch regulation or requirement is identicalto the standards established or prescribedunder such section.’’.

(2) Section 345 of such Act (42 U.S.C. 6316)is amended by adding at the end the follow-ing new subsections:

‘‘(b)(1) The provisions of section 326(a), (b),and (d), section 327(a), and sections 328through 336 shall apply with respect to theequipment specified in subparagraphs (B),(C), (D), (E), and (F) of section 340(1) to thesame extent and in the same manner as theyapply in part B. In applying such provisionsfor the purposes of such equipment, para-graphs (1), (2), (3), and (4) of subsection (a)shall apply.

‘‘(2)(A) A standard prescribed or estab-lished under section 342(a) shall, beginningon the effective date of such standard, super-sede any State or local regulation concern-ing the energy efficiency or energy use of aproduct for which a standard is prescribed orestablished pursuant to such section.

‘‘(B) Notwithstanding subparagraph (A), astandard prescribed or established under sec-tion 342(a) shall not supersede a standard forsuch a product contained in a State or localbuilding code for new construction if—

‘‘(i) the standard in the building code doesnot require that the energy efficiency ofsuch product exceed the applicable minimumenergy efficiency requirement in amendedASHRAE/IES Standard 90.1; and

‘‘(ii) the standard in the building code doesnot take effect prior to the effective date ofthe applicable minimum energy efficiencyrequirement in amended ASHRAE/IESStandard 90.1.

‘‘(C) Notwithstanding subparagraph (A), astandard prescribed or established under sec-

tion 342(a) shall not supersede the standardsestablished by the State of California setforth in Table C-6, California Code of Regula-tions, Title 24, Part 2, Chapter 2–53, forwater-source heat pumps below 135,000 Btuper hour (cooling capacity) that become ef-fective on January 1, 1993.

‘‘(D) Notwithstanding subparagraph (A), astandard prescribed or established under sec-tion 342(a) shall not supersede a State regu-lation which has been granted a waiver bythe Secretary. The Secretary may grant awaiver pursuant to the terms, conditions,criteria, procedures, and other requirementsspecified in section 327(d) of this Act.

‘‘(c) With respect to any electric motor towhich standards are applicable under section342(b), the Secretary shall require manufac-turers to certify, through an independenttesting or certification program nationallyrecognized in the United States, that suchmotor meets the applicable.’’.

(3) Section 345 of such Act (42 U.S.C. 6316)is amended by striking out the section head-ing and inserting in lieu thereof ‘‘ADMINIS-TRATION, PENALTIES, ENFORCEMENT, AND PRE-EMPTION’’.

(f) TECHNICAL AMENDMENTS.—(1) Section340(3) of such Act is amended by striking out‘‘(3) the’’ and inserting in lieu thereof thefollowing: ‘‘(3) The’’.

(2) Section 343 of such Act (42 U.S.C. 6314)is amended by redesignating the first sub-section designated as subsection (d) as sub-section (c).

(3) The table of contents of such Act isamended—

(A) by striking out the item relating tosection 342 and inserting in lieu thereof thefollowing new item:‘‘Sec. 342. Standards.’’;and

(B) by striking the item for section 345 andinserting in lieu thereof the following newitem:‘‘Sec. 345. Administration, penalties, enforce-

ment, and preemption.’’.SEC. 123. ENERGY CONSERVATION REQUIRE-

MENTS FOR CERTAIN LAMPS ANDPLUMBING PRODUCTS.

(a) STATEMENT OF PURPOSE.—Section 2 ofthe Energy Policy and Conservation Act (42U.S.C. 6201) is amended—

(1) in paragraph (6), by striking out ‘‘and’’at the end;

(2) in paragraph (7), by striking out the pe-riod at the end and inserting in lieu thereof‘‘; and’’; and

(3) by adding at the end the following newparagraph:

‘‘(8) to conserve water by improving thewater efficiency of certain plumbing prod-ucts and appliances.’’.

(b) DEFINITIONS.—Section 321(a) of the En-ergy Policy and Conservation Act (42 U.S.C.6291(a)) is amended—

(1) by striking out the subsection designa-tion;

(2) in paragraph (1)—(A) in subparagraph (A), by inserting be-

fore the semicolon the following: ‘‘or, withrespect to showerheads, faucets, water clos-ets, and urinals, water’’; and

(B) in subparagraph (B), by striking out‘‘ballasts’’ and inserting in lieu thereof thefollowing: ‘‘ballasts, general service fluores-cent lamps, incandescent reflector lamps,showerheads, faucets, water closets, andurinals’’;

(3) in paragraph (6)—(A) in subparagraph (A), by inserting ‘‘, or,

in the case of showerheads, faucets, waterclosets, and urinals, water use,’’ after ‘‘en-ergy use’’; and

(B) in subparagraph (B)—(i) by striking out ‘‘and (14)’’ and inserting

in lieu thereof ‘‘(15), (16), (17), and (19)’’; and(ii) by striking out ‘‘325(o)’’ and inserting

in lieu thereof ‘‘325(r)’’;

(4) in paragraph (7), by inserting after ‘‘tobe consumed annually’’ the following: ‘‘, andin the case of showerheads, faucets, waterclosets, and urinals, the aggregate retail costof water and wastewater treatment serviceslikely to be incurred annually,’’; and

(5) by adding at the end the following newparagraphs:

‘‘(30)(A) Except as provided in subpara-graph (E), the term ‘fluorescent lamp’ meansa low pressure mercury electric-dischargesource in which a fluorescing coating trans-forms some of the ultraviolet energy gen-erated by the mercury discharge into light,including only the following:

‘‘(i) Any straight-shaped lamp (commonlyreferred to as 4-foot medium bi-pin lamps)with medium bi-pin bases of nominal overalllength of 48 inches and rated wattage of 28 ormore.

‘‘(ii) Any U-shaped lamp (commonly re-ferred to as 2-foot U-shaped lamps) with me-dium bi-pin bases of nominal overall lengthbetween 22 and 25 inches and rated wattageof 28 or more.

‘‘(iii) Any rapid start lamp (commonly re-ferred to as 8-foot high output lamps) withrecessed double contact bases of nominaloverall length of 96 inches and 0.800 nominalamperes, as defined in ANSI C78.1–1978 andrelated supplements.

‘‘(iv) Any instant start lamp (commonlyreferred to as 8-foot slimline lamps) with sin-gle pin bases of nominal overall length of 96inches and rated wattage of 52 or more, asdefined in ANSI C78.3–1978 (R1984) and relat-ed supplement ANSI C78.3a–1985.

‘‘(B) The term ‘general service fluorescentlamp’ means fluorescent lamps which can beused to satisfy the majority of fluorescentapplications, but does not include any lampdesigned and marketed for the following non-general lighting applications:

‘‘(i) Fluorescent lamps designed to pro-mote plant growth.

‘‘(ii) Fluorescent lamps specifically de-signed for cold temperature installations.

‘‘(iii) Colored fluorescent lamps.‘‘(iv) Impact-resistant fluorescent lamps.‘‘(v) Reflectorized or aperture lamps.‘‘(vi) Fluorescent lamps designed for use in

reprographic equipment.‘‘(vii) Lamps primarily designed to produce

radiation in the ultra-violet region of thespectrum.

‘‘(viii) Lamps with a color rendering indexof 82 or greater.

‘‘(C) Except as provided in subparagraph(E), the term ‘incandescent lamp’ means alamp in which light is produced by a fila-ment heated to incandescence by an electriccurrent, including only the following:

‘‘(i) Any lamp (commonly referred to aslower wattage nonreflector general servicelamps, including any tungsten-halogen lamp)that has a rated wattage between 30 and 199watts, has an E26 medium screw base, has arated voltage or voltage range that lies atleast partially within 115 and 130 volts, and isnot a reflector lamp.

‘‘(ii) Any lamp (commonly referred to as areflector lamp) which is not colored or de-signed for rough or vibration service applica-tions, that contains an inner reflective coat-ing on the outer bulb to direct the light, anR, PAR, or similar bulb shapes (excludingER or BR) with E26 medium screw bases, arated voltage or voltage range that lies atleast partially within 115 and 130 volts, a di-ameter which exceed 2.75 inches, and is ei-ther—

‘‘(I) a low(er) wattage reflector lamp whichhas a rated wattage between 40 and 205watts; or

‘‘(II) a high(er) wattage reflector lampwhich has a rated wattage above 205 watts.


2601

1992 T121.25‘‘(iii) Any general service incandescent

lamp (commonly referred to as a high- orhigher wattage lamp) that has a rated watt-age above 199 watts (above 205 watts for ahigh wattage reflector lamp).

‘‘(D) The term ‘general service incandes-cent lamp’ means any incandescent lamp(other than a miniature or photographiclamp) that has an E26 medium screw base, arated voltage range at least partially within115 and 130 volts, and which can be used tosatisfy the majority of lighting applications,but does not include any lamps specificallydesigned for—

‘‘(i) traffic signal, or street lighting serv-ice;

‘‘(ii) airway, airport, aircraft, or otheraviation service;

‘‘(iii) marine or marine signal service;‘‘(iv) photo, projection, sound reproduc-

tion, or film viewer service;‘‘(v) stage, studio, or television service;‘‘(vi) mill, saw mill, or other industrial

process service;‘‘(vii) mine service;‘‘(viii) headlight, locomotive, street rail-

way, or other transportation service;‘‘(ix) heating service;‘‘(x) code beacon, marine signal, light-

house, reprographic, or other communicationservice;

‘‘(xi) medical or dental service;‘‘(xii) microscope, map, microfilm, or other

specialized equipment service;‘‘(xiii) swimming pool or other underwater

service;‘‘(xiv) decorative or showcase service;‘‘(xv) producing colored light;‘‘(xvi) shatter resistance which has an ex-

ternal protective coating; or‘‘(xvii) appliance service.‘‘(E) The terms ‘fluorescent lamp’ and ‘in-

candescent lamp’ do not include any lampexcluded by the Secretary, by rule, as a re-sult of a determination that standards forsuch lamp would not result in significant en-ergy savings because such lamp is designedfor special applications or has special char-acteristics not available in reasonably sub-stitutable lamp types.

‘‘(F) The term ‘incandescent reflectorlamp’ means a lamp described in subpara-graph (C)(ii).

‘‘(G) The term ‘average lamp efficacy’means the lamp efficacy readings taken overa statistically significant period of manufac-ture with the readings averaged over that pe-riod.

‘‘(H) The term ‘base’ means the portion ofthe lamp which connects with the socket asdescribed in ANSI C81.61–1990.

‘‘(I) The term ‘bulb shape’ means the shapeof lamp, especially the glass bulb with des-ignations for bulb shapes found in ANSIC79.1–1980 (R1984).

‘‘(J) The term ‘color rendering index’ or‘CRI’ means the measure of the degree ofcolor shift objects undergo when illuminatedby a light source as compared with the colorof those same objects when illuminated by areference source of comparable color tem-perature.

‘‘(K) The term ‘correlated color tempera-ture’ means the absolute temperature of ablackbody whose chromaticity most nearlyresembles that of the light source.

‘‘(L) The term ‘IES’ means the Illuminat-ing Engineering Society of North America.

‘‘(M) The term ‘lamp efficacy’ means thelumen output of a lamp divided by its watt-age, expressed in lumens per watt (LPW).

‘‘(N) The term ‘lamp type’ means all lampsdesignated as having the same electrical andlighting characteristics and made by onemanufacturer.

‘‘(O) The term ‘lamp wattage’ means thetotal electrical power consumed by a lamp inwatts, after the initial seasoning period ref-erenced in the appropriate IES standard test

procedure and including, for fluorescent, arcwatts plus cathode watts.

‘‘(P) The terms ‘life’ and ‘lifetime’ meanlength of operating time of a statisticallylarge group of lamps between first use andfailure of 50 percent of the group in accord-ance with test procedures described in theIES Lighting Handbook-Reference Volume.

‘‘(Q) The term ‘lumen output’ means totalluminous flux (power) of a lamp in lumens,as measured in accordance with applicableIES standards as determined by the Sec-retary.

‘‘(R) The term ‘tungsten-halogen lamp’means a gas-filled tungsten filament incan-descent lamp containing a certain proportionof halogens in an inert gas.

‘‘(S) The term ‘medium base compact fluo-rescent lamp’ means an integrally ballastedfluorescent lamp with a medium screw baseand a rated input voltage of 115 to 130 voltsand which is designed as a direct replace-ment for a general service incandescentlamp.

‘‘(31)(A) The term ‘water use’ means thequantity of water flowing through ashowerhead, faucet, water closet, or urinalat point of use, determined in accordancewith test procedures under section 323.

‘‘(B) The term ‘ASME’ means the Amer-ican Society of Mechanical Engineers.

‘‘(C) The term ‘ANSI’ means the AmericanNational Standards Institute.

‘‘(D) The term ‘showerhead’ means anyshowerhead (including a handheldshowerhead), except a safety showershowerhead.

‘‘(E) The term ‘faucet’ means a lavatoryfaucet, kitchen faucet, metering faucet, orreplacement aerator for a lavatory or kitch-en faucet.

‘‘(F) The term ‘water closet’ has the mean-ing given such term in ASME A112.19.2M–1990, except such term does not include fix-tures designed for installation in prisons.

‘‘(G) The term ‘urinal’ has the meaninggiven such term in ASME A112.19.2M–1990,except such term does not include fixturesdesigned for installation in prisons.

‘‘(H) The terms ‘blowout’, ‘flushometertank’, ‘low consumption’, and ‘flushometervalve’ have the meaning given such terms inASME A112.19.2M–1990.’’.

(c) COVERAGE.—Section 322(a) of such Act(42 U.S.C. 6292(a)) is amended—

(1) by redesignating paragraph (14) as para-graph (19); and

(2) by inserting after paragraph (13) the fol-lowing new paragraphs:

‘‘(14) General service fluorescent lamps andincandescent reflector lamps.

‘‘(15) Showerheads, except safety showershowerheads.

‘‘(16) Faucets.‘‘(17) Water closets.‘‘(18) Urinals.’’.(d) TEST PROCEDURES.—Section 323 of such

Act (42 U.S.C. 6293) is amended—(1) in subsection (b)—(A) in paragraph (3), by inserting after ‘‘en-

ergy use,’’ the following ‘‘water use (in thecase of showerheads, faucets, water closetsand urinals),’’;

(B) in paragraph (4)—(i) by inserting ‘‘or, in the case of

showerheads, faucets, water closets, or uri-nals, water use’’ after ‘‘energy use’’;

(ii) by inserting after ‘‘such cycle’’ the fol-lowing: ‘‘, or in the case of showerheads, fau-cets, water closets, or urinals, representativeaverage unit costs of water and wastewatertreatment service resulting from the oper-ation of such products during such cycle’’;and

(iii) by inserting ‘‘, water, and wastewatertreatment’’ before the period at the end ofthe second sentence; and

(C) by adding at the end the following newparagraphs:

‘‘(6) With respect to fluorescent lamps andincandescent reflector lamps to which stand-ards are applicable under subsection (i) ofsection 325, the Secretary shall prescribe testprocedures, to be carried out by accreditedtest laboratories, that take into consider-ation the applicable IES or ANSI standard.

‘‘(7)(A) Test procedures for showerheadsand faucets to which standards are applica-ble under subsection (j) of section 325 shallbe the test procedures specified in ASMEA112.18.1M–1989 for such products.

‘‘(B) If the test procedure requirements ofASME A112.18.1M–1989 are revised at anytime and approved by ANSI, the Secretaryshall amend the test procedures establishedby subparagraph (A) to conform to such re-vised ASME/ANSI requirements unless theSecretary determines, by rule, that to do sowould not meet the requirements of para-graph (3).

‘‘(8)(A) Test procedures for water closetsand urinals to which standards are applica-ble under subsection (k) of section 325 shallbe the test procedures specified in ASMEA112.19.6–1990 for such products.

‘‘(B) If the test procedure requirements ofASME A112.19.6–1990 are revised at any timeand approved by ANSI, the Secretary shallamend the test procedures established bysubparagraph (A) to conform to such revisedASME/ANSI requirements unless the Sec-retary determines, by rule, that to do sowould not meet the requirements of para-graph (3).’’;

(2) in paragraphs (1) and (2) of subsection(c), by inserting ‘‘or, in the case ofshowerheads, faucets, water closets, and uri-nals, water use’’ after ‘‘efficiency’’ eachplace it appears;

(3) in subsection (c)(2), in the material pre-ceding subparagraph (A), by inserting ‘‘or es-tablished’’ after ‘‘prescribed’’; and

(4) in subsection (e)—(A) in paragraph (1), by striking out ‘‘or

measured energy use’’ and inserting in lieuthereof ‘‘, measured energy use, or measuredwater use’’;

(B) in paragraph (2), by striking out ‘‘en-ergy efficiency or energy use’’ each place itappears and inserting in lieu thereof ‘‘energyefficiency, energy use, or water use’’; and

(C) in paragraph (3), by striking out ‘‘en-ergy efficiency or energy use’’ and insertingin lieu thereof ‘‘energy efficiency, energyuse, or water use’’.

(e) LABELING.—Section 324 of such Act (42U.S.C. 6294) is amended—

(1) in subsection (a)(2), by adding at theend the following new subparagraphs:

‘‘(C)(i) Not later than 18 months after thedate of the enactment of the Energy PolicyAct of 1992, the Commission shall prescribelabeling rules under this section applicableto general service fluorescent lamps, me-dium base compact fluorescent lamps, andgeneral service incandescent lamps. Exceptas provided in clause (ii), such rules shallprovide that the labeling of any general serv-ice fluorescent lamp, medium base compactfluorescent lamp, and general service incan-descent lamp manufactured after the 12-month period beginning on the date of thepublication of such rule shall indicate con-spicuously on the packaging of the lamp, ina manner prescribed by the Commissionunder subsection (b), such information as theCommission deems necessary to enable con-sumers to select the most energy efficientlamps which meet their requirements. Label-ing information for incandescent lamps shallbe based on performance when operated at120 volts input, regardless of the rated lampvoltage.

‘‘(ii) If the Secretary determines that com-pliance with the standards specified in sec-tion 325(j) for any lamp will result in the dis-continuance of the manufacture of suchlamp, the Commission may exempt such

JOURNAL OF THE

2602

OCTOBER 5T121.25lamp from the labeling rules prescribedunder clause (i).

‘‘(D)(i) Not later than one year after thedate of the enactment of the Energy PolicyAct of 1992, the Commission shall prescribelabeling rules under this section forshowerheads and faucets to which standardsare applicable under subsection (j) of section325. Such rules shall provide that the label-ing of any showerhead or faucet manufac-tured after the 12-month period beginning onthe date of the publication of such rule shallbe consistent with the marking and labelingrequirements of ASME A112.18.1M-1989, ex-cept that each showerhead and flow restrict-ing or controlling spout-end device shallbear a permanent legible marking indicatingthe flow rate, expressed in gallons perminute (gpm) or gallons per cycle (gpc), andthe flow rate value shall be the actual flowrate or the maximum flow rate specified bythe standards established in subsection (j) ofsection 325.

‘‘(ii) If the marking and labeling require-ments of ASME A112.18.1M–1989 are revisedat any time and approved by ANSI, the Com-mission shall amend the labeling rules estab-lished pursuant to clause (i) to be consistentwith such revised ASME/ANSI requirementsunless such requirements are inconsistentwith the purposes of this Act or the require-ment specified in clause (i) requiring eachshowerhead and flow restricting or control-ling spout-end device to bear a permanentlegible marking indicating the flow rate ofsuch product.

‘‘(E)(i) Not later than one year after thedate of the enactment of the Energy PolicyAct of 1992, the Commission shall prescribelabeling rules under this section for waterclosets and urinals to which standards areapplicable under subsection (k) of section325. Such rules shall provide that the label-

ing of any water closet or urinal manufac-tured after the 12-month period beginning onthe date of the publication of such rule shallbe consistent with the marking and labelingrequirements of ASME A112.19.2M–1990, ex-cept that each fixture (and flushometer valveassociated with such fixture) shall bear apermanent legible marking indicating thewater use, expressed in gallons per flush(gpf), and the water use value shall be the ac-tual water use or the maximum water usespecified by the standards established in sub-section (k) of section 325.

‘‘(ii) If the marking and labeling require-ments of ASME A112.19.2M–1990 are revisedat any time and approved by ANSI, the Com-mission shall amend the labeling rules estab-lished pursuant to clause (i) to be consistentwith such revised ASME/ANSI requirementsunless such requirements are inconsistentwith the purposes of this Act or the require-ment specified in clause (i) requiring eachfixture and flushometer valve to bear a per-manent legible marking indicating the wateruse of such fixture or flushometer valve.

‘‘(iii) Any labeling rules prescribed underthis subparagraph before January 1, 1997,shall provide that, with respect to any grav-ity tank-type white 2-piece toilet which hasa water use greater than 1.6 gallons per flush(gpf), any printed matter distributed or dis-played in connection with such product (in-cluding packaging and point of sale mate-rial, catalog material, and print advertising)shall include, in a conspicuous manner, thewords ‘For Commercial Use Only’.’’;

(2) in subsection (a)(3), by striking out‘‘(14)’’ and inserting in lieu thereof ‘‘(19)’’;

(3) in subsection (b)(1)(B), by striking out‘‘(14)’’ and inserting in lieu thereof ‘‘(13), andparagraphs (15) through (19)’’;

(4) in paragraphs (3) and (5) of subsection(b), by striking out ‘‘(14)’’ and inserting inlieu thereof ‘‘(19)’’; and

(5) in subsection (c)—(A) in paragraph (7), by striking out ‘‘para-

graph (13) of section 322’’ and inserting inlieu thereof ‘‘paragraphs (13), (14), (15), (16),(17), and (18) of section 322(a)’’; and

(B) by adding at the end the following:‘‘(8) If a manufacturer of a covered product

specified in paragraph (15) or (17) of section322(a) elects to provide a label for such cov-ered product conveying the estimated annualoperating cost of such product or the rangeof estimated annual operating costs for thetype or class of such product—

‘‘(A) such estimated cost or range of costsshall be determined in accordance with testprocedures prescribed under section 323;

‘‘(B) the format of such label shall be in ac-cordance with a format prescribed by theCommission; and

‘‘(C) such label shall be displayed in a man-ner, prescribed by the Commission, to belikely to assist consumers in making pur-chasing decisions and appropriate to carryout the purposes of this Act.’’.

(f) STANDARDS.—Section 325 of such Act (42U.S.C. 6295) is amended—

(1) by redesignating subsections (i) through(q) as subsections (l) through (t);

(2) by inserting after subsection (h) the fol-lowing:

‘‘(i) GENERAL SERVICE FLUORESCENT LAMPSAND INCANDESCENT REFLECTOR LAMPS.—(1)(A)Each of the following general service fluores-cent lamps and incandescent reflector lampsmanufactured after the effective date speci-fied in the tables listed in this paragraphshall meet or exceed the following lamp effi-cacy and CRI standards:

‘‘FLUORESCENT LAMPS

‘‘Lamp TypeNominal

Lamp Watt-age

MinimumCRI

Minimum AverageLamp Efficacy (LPW)

EffectiveDate

(Months)

4-foot medium bi-pin ................................................................................................................ >35W 69 75.0 36≤35W 45 75.0 36

2-foot U-shaped ......................................................................................................................... >35W 69 68.0 36≤35W 45 64.0 36

8-foot slimline .......................................................................................................................... 65W 69 80.0 18≤65W 45 80.0 18

8-foot high output .................................................................................................................... >100W 69 80.0 18≤100W 45 80.0 18

‘‘INCANDESCENT REFLECTORLAMPS

‘‘Nominal LampWattage

MinimumAverage

Lamp Effi-cacy

(LPW)

EffectiveDate

(Months)

40–50 ......................... 10.5 3651–66 ......................... 11.0 3667–85 ......................... 12.5 3686–115 ........................ 14.0 36

116–155 ........................ 14.5 36156–205 ........................ 15.0 36

‘‘(B) For the purposes of the tables setforth in subparagraph (A), the term ‘effectivedate’ means the last day of the month setforth in the table which follows the date ofthe enactment of the Energy Policy Act of1992.

‘‘(2) Notwithstanding section 332(a)(5) andsection 332(b), it shall not be unlawful for amanufacturer to sell a lamp which is in com-pliance with the law at the time such lampwas manufactured.

‘‘(3) Not less than 36 months after the dateof the enactment of this subsection, the Sec-retary shall initiate a rulemaking procedureand shall publish a final rule not later thanthe end of the 54-month period beginning onthe date of the enactment of this subsection

to determine if the standards establishedunder paragraph (1) should be amended. Suchrule shall contain such amendment, if any,and provide that the amendment shall applyto products manufactured on or after the 36-month period beginning on the date suchfinal rule is published.

‘‘(4) Not less than eight years after thedate of the enactment of this subsection, theSecretary shall initiate a rulemaking proce-dure and shall publish a final rule not laterthan nine years and six months after thedate of the enactment of this subsection todetermine if the standards in effect for fluo-rescent lamps and incandescent lamps shouldbe amended. Such rule shall contain suchamendment, if any, and provide that theamendment shall apply to products manufac-tured on or after the 36-month period begin-ning on the date such final rule is published.

‘‘(5) Not later than the end of the 24-monthperiod beginning on the date labeling re-quirements under section 324(a)(2)(C) becomeeffective, the Secretary shall initiate a rule-making procedure to determine if the stand-ards in effect for fluorescent lamps and in-candescent lamps should be amended so thatthey would be applicable to additional gen-eral service fluorescent and general serviceincandescent lamps and shall publish, notlater than 18 months after initiating suchrulemaking, a final rule including such

amended standards, if any. Such rule shallprovide that the amendment shall apply toproducts manufactured after a date which is36 months after the date such rule is pub-lished.

‘‘(6)(A) With respect to any lamp to whichstandards are applicable under this sub-section or any lamp specified in section 346,the Secretary shall inform any Federal en-tity proposing actions which would adverselyimpact the energy consumption or energy ef-ficiency of such lamp of the energy conserva-tion consequences of such action. It shall bethe responsibility of such Federal entity tocarefully consider the Secretary’s com-ments.

‘‘(B) Notwithstanding section 325(n)(1), theSecretary shall not be prohibited fromamending any standard, by rule, to permitincreased energy use or to decrease the mini-mum required energy efficiency of any lampto which standards are applicable under thissubsection if such action is warranted as aresult of other Federal action (including re-strictions on materials or processes) whichwould have the effect of either increasing theenergy use or decreasing the energy effi-ciency of such product.

‘‘(7) Not later than the date on whichstandards established pursuant to this sub-section become effective, or, with respect tohigh-intensity discharge lamps covered


2603

1992 T121.25under section 346, the effective date of stand-ards established pursuant to such section,each manufacturer of a product to whichsuch standards are applicable shall file withthe Secretary a laboratory report certifyingcompliance with the applicable standard foreach lamp type. Such report shall includethe lumen output and wattage consumptionfor each lamp type as an average of measure-ments taken over the preceding 12-month pe-riod. With respect to lamp types which arenot manufactured during the 12-month pe-riod preceding the date such standards be-come effective, such report shall be filedwith the Secretary not later than the datewhich is 12 months after the date manufac-turing is commenced and shall include thelumen output and wattage consumption foreach such lamp type as an average of meas-urements taken during such 12-month pe-riod.

‘‘(j) STANDARDS FOR SHOWERHEADS ANDFAUCETS.—(1) The maximum water use al-lowed for any showerhead manufacturedafter January 1, 1994, is 2.5 gallons perminute when measured at a flowing waterpressure of 80 pounds per square inch. Anysuch showerhead shall also meet the require-ments of ASME/ANSI A112.18.1M-1989,7.4.3(a).

‘‘(2) The maximum water use allowed forany of the following faucets manufacturedafter January 1, 1994, when measured at aflowing water pressure of 80 pounds persquare inch, is as follows:‘‘Lavatory faucets .......... 2.5 gallons per minute‘‘Lavatory replacement

aerators.2.5 gallons per minute

‘‘Kitchen faucets ............ 2.5 gallons per minute‘‘Kitchen replacement

aerators.2.5 gallons per minute

‘‘Metering faucets .......... 0.25 gallons per cycle‘‘(3)(A) If the maximum flow rate require-

ments or the design requirements of ASME/ANSI Standard A112.18.1M–1989 are amendedto improve the efficiency of water use of anytype or class of showerhead or faucet and areapproved by ANSI, the Secretary shall, notlater than 12 months after the date of suchamendment, publish a final rule establishingan amended uniform national standard forthat product at the level specified in theamended ASME/ANSI Standard A112.18.1Mand providing that such standard shall applyto products manufactured after a date whichis 12 months after the publication of suchrule, unless the Secretary determines, byrule published in the Federal Register, thatadoption of a uniform national standard atthe level specified in such amended ASME/ANSI Standard A112.18.1M—

‘‘(i) is not technologically feasible and eco-nomically justified under subsection (o);

‘‘(ii) is not consistent with the mainte-nance of public health and safety; or

‘‘(iii) is not consistent with the purposes ofthis Act.

‘‘(B)(i) As part of the rulemaking con-ducted under subparagraph (A), the Sec-retary shall also determine if adoption of auniform national standard for any type orclass of showerhead or faucet more stringentthan such amended ASME/ANSI StandardA112.18.1M—

‘‘(I) would result in additional conserva-tion of energy or water;

‘‘(II) would be technologically feasible andeconomically justified under subsection (o);and

‘‘(III) would be consistent with the mainte-nance of public health and safety.

‘‘(ii) If the Secretary makes an affirmativedetermination under clause (i), the final rulepublished under subparagraph (A) shallwaive the provisions of section 327(c) with re-spect to any State regulation concerning thewater use or water efficiency of such type orclass of showerhead or faucet if such Stateregulation—

‘‘(I) is more stringent than amendedASME/ANSI Standard A–112.18.1M for suchtype or class of showerhead or faucet and thestandard in effect for such product on theday before the date on which a final rule ispublished under subparagraph (A); and

‘‘(II) is applicable to any sale or installa-tion of all products in such type or class ofshowerhead or faucet.

‘‘(C) If, after any period of five consecutiveyears, the maximum flow rate requirementsof the ASME/ANSI standard for showerheadsare not amended to improve the efficiency ofwater use of such products, or after any suchperiod such requirements for faucets are notamended to improve the efficiency of wateruse of such products, the Secretary shall, notlater than six months after the end of suchfive-year period, publish a final rule waivingthe provisions of section 327(c) with respectto any State regulation concerning thewater use or water efficiency of such type orclass of showerhead or faucet if such Stateregulation—

‘‘(i) is more stringent than the standardsin effect for such type of class of showerheador faucet; and

‘‘(ii) is applicable to any sale or installa-tion of all products in such type or class ofshowerhead or faucet.

‘‘(k) STANDARDS FOR WATER CLOSETS ANDURINALS.—(1)(A) Except as provided in sub-paragraph (B), the maximum water use al-lowed in gallons per flush for any of the fol-lowing water closets manufactured afterJanuary 1, 1994, is the following:

‘‘Gravity tank-type toilets .... 1.6 gpf.‘‘Flushometer tank toilets .... 1.6 gpf.‘‘Electromechanical hydrau-lic toilets ............................... 1.6 gpf.‘‘Blowout toilets .................... 3.5 gpf.

‘‘(B) The maximum water use allowed forany gravity tank-type white 2-piece toiletwhich bears an adhesive label conspicuousupon installation consisting of the words‘Commercial Use Only’ manufactured afterJanuary 1, 1994, and before January 1, 1997, is3.5 gallons per flush.

‘‘(C) The maximum water use allowed forflushometer valve toilets, other than blow-out toilets, manufactured after January 1,1997, is 1.6 gallons per flush.

‘‘(2) The maximum water use allowed forany urinal manufactured after January 1,1994, is 1.0 gallons per flush.

‘‘(3)(A) If the maximum flush volume re-quirements of ASME Standard A112.19.6–1990are amended to improve the efficiency ofwater use of any low consumption watercloset or low consumption urinal and are ap-proved by ANSI, the Secretary shall, notlater than 12 months after the date of suchamendment, publish a final rule establishingan amended uniform national standard forthat product at the level specified in amend-ed ASME/ANSI Standard A112.19.6 and pro-viding that such standard shall apply toproducts manufactured after a date which isone year after the publication of such rule,unless the Secretary determines, by rulepublished in the Federal Register, that adop-tion of a uniform national standard at thelevel specified in such amended ASME/ANSIStandard A112.19.6—

‘‘(i) is not technologically feasible and eco-nomically justified under subsection (o);

‘‘(ii) is not consistent with the mainte-nance of public health and safety; or

‘‘(iii) is not consistent with the purposes ofthis Act.

‘‘(B)(i) As part of the rulemaking con-ducted under subparagraph (A), the Sec-retary shall also determine if adoption of auniform national standard for any type orclass of low consumption water closet or lowconsumption urinal more stringent thansuch amended ASME/ANSI StandardA112.19.6 for such product—

‘‘(I) would result in additional conserva-tion of energy or water;

‘‘(II) would be technologically feasible andeconomically justified under subsection (o);and

‘‘(III) would be consistent with the mainte-nance of public health and safety.

‘‘(ii) If the Secretary makes an affirmativedetermination under clause (i), the final rulepublished under subparagraph (A) shallwaive the provisions of section 327(c) with re-spect to any State regulation concerning thewater use or water efficiency of such type orclass of low consumption water closet or lowconsumption urinal if such State regula-tion—

‘‘(I) is more stringent than amendedASME/ANSI Standard A–112.19.6 for suchtype or class of low consumption water clos-et or low consumption urinal and the stand-ard in effect for such product on the day be-fore the date on which a final rule is pub-lished under subparagraph (A); and

‘‘(II) is applicable to any sale or installa-tion of all products in such type or class oflow consumption water closet or low con-sumption urinal.

‘‘(C) If, after any period of five consecutiveyears, the maximum flush volume require-ments of the ASME/ANSI standard for lowconsumption water closets are not amendedto improve the efficiency of water use ofsuch products, or after any such period suchrequirements for low consumption urinalsare not amended to improve the efficiency ofwater use of such products, the Secretaryshall, not later than six months after the endof such five-year period, publish a final rulewaiving the provisions of section 327(c) withrespect to any State regulation concerningthe water use or water efficiency of suchtype or class of water closet or urinal if suchState regulation—

‘‘(i) is more stringent than the standardsin effect for such type or class of water clos-et or urinal; and

‘‘(ii) is applicable to any sale or installa-tion of all products in such type or class ofwater closet or urinal.’’;

(3) in subsection (l) (as redesignated byparagraph (1) of this subsection)—

(A) in paragraphs (1) and (2), by strikingout ‘‘(14)’’ and inserting in lieu thereof‘‘(19)’’; and

(B) in paragraphs (1) and (3), by strikingout ‘‘(l) and (m)’’ and inserting in lieu there-of ‘‘(o) and (p)’’;

(4) in subsection (m) (as redesignated byparagraph (1) of this subsection), by strikingout ‘‘(h)’’ and inserting in lieu thereof ‘‘(i)’’;

(5) in subsection (n) (as redesignated byparagraph (1) of this subsection)—

(A) in paragraph (1)—(i) by striking out ‘‘and in paragraph (13)’’

and inserting in lieu thereof ‘‘, and in para-graphs (13) and (14)’’; and

(ii) by striking out ‘‘(h)’’ and inserting inlieu thereof ‘‘(i)’’;

(B) in paragraph (2)(C), by striking out‘‘(l)(2)(B)(i)(II)’’ and inserting in lieu thereof‘‘(o)(2)(B)(i)(II)’’; and

(C) in paragraph (3)(B), by inserting ‘‘gen-eral service fluorescent lamps, incandescentreflector lamps,’’ after ‘‘fluorescent lampballasts,’’;

(6) in subsection (o) (as redesignated byparagraph (1) of this subsection)—

(A) in paragraph (1), by inserting ‘‘or, inthe case of showerheads, faucets, water clos-ets, or urinals, water use,’’ after ‘‘energyuse,’’;

(B) in paragraph (2)(A), by inserting ‘‘, or,in the case of showerheads, faucets, waterclosets, or urinals, water efficiency,’’ after‘‘energy efficiency’’;

(C) in paragraph (2)(B)(i)(III), by inserting‘‘, or as applicable, water,’’ after ‘‘energy’’;

(D) in paragraph (2)(B)(i)(VI), by inserting‘‘and water’’ after ‘‘energy’’;

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OCTOBER 5T121.25(E) in paragraph (2)(B)(iii), by striking out

‘‘energy savings’’ and inserting ‘‘energy, andas applicable water, savings’’; and

(F) in paragraph (3)(B), by inserting ‘‘, inthe case of showerheads, faucets, water clos-ets, or urinals, water, or’’ after ‘‘energy or’’;and

(7) in subsection (p)(3)(A) (as redesignatedby paragraph (1) of this subsection)—

(A) by striking out ‘‘(l)(2)’’ and inserting inlieu thereof ‘‘(o)(2)’’; and

(B) by striking out ‘‘(l)(4)’’ and inserting inlieu thereof ‘‘(o)(4)’’.

(g) REQUIREMENTS OF MANUFACTURERS.—Section 326 of such Act (42 U.S.C. 6296) isamended—

(1) in subsection (b)(4), by inserting ‘‘orwater use’’ after ‘‘consumption’’; and

(2) in subsection (d)(1), by striking out ‘‘orenergy use’’ and inserting in lieu thereof ‘‘,energy use, or, in the case of showerheads,faucets, water closets, and urinals, wateruse’’.

(h) EFFECT ON OTHER LAW.—Section 327 ofsuch Act (42 U.S.C. 6297) is amended—

(1) in subsection (a)—(A) in paragraph (1), in the material pre-

ceding subparagraph (A), by inserting ‘‘orwater use’’ after ‘‘energy consumption’’;

(B) in paragraph (1)(A), by inserting ‘‘,water use,’’ after ‘‘energy consumption’’;

(C) in paragraph (1)(B), by striking out ‘‘orenergy efficiency’’ and inserting in lieuthereof ‘‘, energy efficiency, or water use’’;and

(D) by amending paragraph (2) to read asfollows:

‘‘(2) For purposes of this section, the fol-lowing definitions apply:

‘‘(A) The term ‘State regulation’ means alaw, regulation, or other requirement of aState or its political subdivisions. With re-spect to showerheads, faucets, water closets,and urinals, such term shall also mean a law,regulation, or other requirement of a riverbasin commission that has jurisdiction with-in a State.

‘‘(B) The term ‘river basin commission’means—

‘‘(i) a commission established by interstatecompact to apportion, store, regulate, orotherwise manage or coordinate the manage-ment of the waters of a river basin; and

‘‘(ii) a commission established under sec-tion 201(a) of the Water Resources PlanningAct (42 U.S.C. 1962b(a)).’’;

(2) in subsection (b)—(A) in the material preceding paragraph

(1), by striking out ‘‘or energy use of the cov-ered product’’ and inserting in lieu thereof ‘‘,energy use, or water use of the covered prod-uct’’;

(B) by inserting before the semicolon atthe end of paragraph (1) the following: ‘‘, orin the case of any portion of any regulationwhich establishes requirements for fluores-cent or incandescent lamps, flow rate re-quirements for showerheads or faucets, orwater use requirements for water closets orurinals, was prescribed or enacted before thedate of the enactment of the Energy PolicyAct of 1992’’;

(C) in paragraph (4), by inserting before thesemicolon at the end the following: ‘‘, or is aregulation (or portion thereof) regulatingfluorescent or incandescent lamps other thanthose to which section 325(i) is applicable, oris a regulation (or portion thereof) regulat-ing showerheads or faucets other than thoseto which section 325(j) is applicable or regu-lating lavatory faucets (other than meteringfaucets) for installation in public places, oris a regulation (or portion thereof) regulat-ing water closets or urinals other than thoseto which section 325(k) is applicable’’;

(D) in paragraph (5), by striking out ‘‘or’’;(E) in paragraph (6), by striking out the pe-

riod at the end and inserting ‘‘; or’’; and

(F) by adding at the end the following newparagraph:

‘‘(7) is a regulation (or portion thereof)concerning the water efficiency or water useof low consumption flushometer valve waterclosets.’’;

(3) in subsection (c)—(A) in the material preceding paragraph

(1)—(i) by inserting ‘‘, subparagraphs (B) and

(C) of section 325(j)(3), and subparagraphs (B)and (C) of section 325(k)(3)’’ after ‘‘section325(b)(3)(A)(ii)’’; and

(ii) by striking out ‘‘or energy use’’ and in-serting in lieu thereof the following: ‘‘, en-ergy use, or water use’’;

(B) in paragraph (1), by inserting before thesemicolon at the end the following: ‘‘, exceptthat a State regulation (or portion thereof)regulating fluorescent or incandescent lampsother than those for which section 325(i) isapplicable shall be effective only until theeffective date of a standard that is prescribedby the Secretary and is applicable to suchlamps’’;

(C) in paragraph (2), by striking out ‘‘or’’;(D) in paragraph (3), by striking out the pe-

riod at the end and inserting a semicolon;and

(E) by adding at the end the following newparagraphs:

‘‘(4) is a regulation concerning the wateruse of lavatory faucets adopted by the Stateof New York or the State of Georgia beforethe date of the enactment of the Energy Pol-icy Act of 1992;

‘‘(5) is a regulation concerning the wateruse of lavatory or kitchen faucets adopted bythe State of Rhode Island prior to the date ofthe enactment of the Energy Policy Act of1992; or

‘‘(6) is a regulation (or portion thereof)concerning the water efficiency or water useof gravity tank-type low consumption waterclosets for installation in public places, ex-cept that such a regulation shall be effectiveonly until January 1, 1997.’’;

(4) in subsection (d)(1)—(A) in subparagraph (A)—(i) by inserting ‘‘or river basin commis-

sion’’ after ‘‘Any State’’; and(ii) by striking out ‘‘or energy efficiency’’

and inserting in lieu thereof ‘‘, energy effi-ciency, or water use’’;

(B) in subparagraph (B)—(i) by striking out ‘‘State has’’ and insert-

ing ‘‘State or river basin commission has’’;and

(ii) by inserting ‘‘or water’’ after ‘‘energy’’;(C) in subparagraph (C)—(i) in the material preceding clause (i) and

in clause (ii), by inserting ‘‘or water’’ after‘‘energy’’ each place it appears; and

(ii) by inserting before the period at theend the following: ‘‘, and, with respect to aState regulation for which a petition hasbeen submitted to the Secretary which pro-vides for any energy conservation standardor requirement with respect to water use ofa covered product, within the context of thewater supply and groundwater managementplan, water quality program, and comprehen-sive plan (if any) of the State or river basincommission for improving, developing, orconserving a waterway affected by watersupply development’’; and

(5) in subsection (d)(5)(B), by strikingclause (i) and inserting the following:

‘‘(i) there exists within the State an energyemergency condition or, if the State regula-tion provides for an energy conservationstandard or other requirement with respectto the water use of a covered product forwhich there is a Federal energy conservationstandard under subsection (j) or (k) of sec-tion 325, a water emergency condition,which—

‘‘(I) imperils the health, safety, and wel-fare of its residents because of the inability

of the State or utilities within the State toprovide adequate quantities of gas or electricenergy or, in the case of a water emergencycondition, water or wastewater treatment,to its residents at less than prohibitivecosts; and

‘‘(II) cannot be substantially alleviated bythe importation of energy or, in the case ofa water emergency condition, by the impor-tation of water, or by the use of interconnec-tion agreements; and’’.

(i) INCENTIVE PROGRAMS.—Section 337 ofsuch Act (42 U.S.C. 6307) is amended—

(1) by striking out ‘‘337.’’ and inserting‘‘337. (a) IN GENERAL.—’’; and

(2) by adding at the end the following:‘‘(b) STATE AND LOCAL INCENTIVE PRO-

GRAMS.—(1) The Secretary shall, not laterthan one year after the date of the enact-ment of this subsection, issue recommenda-tions to the States for establishing State andlocal incentive programs designed to encour-age the acceleration of voluntary replace-ment, by consumers, of existingshowerheads, faucets, water closets, and uri-nals with those products that meet thestandards established for such products pur-suant to subsections (j) and (k) of section325.

‘‘(2) In developing such recommendations,the Secretary shall consult with the heads ofother federal agencies, including the Admin-istrator of the Environmental ProtectionAgency; State officials; manufacturers, sup-pliers, and installers of plumbing products;and other interested parties.’’.SEC. 124. HIGH-INTENSITY DISCHARGE LAMPS,

DISTRIBUTION TRANSFORMERS,AND SMALL ELECTRIC MOTORS.

(a) STANDARDS.—Section 346 of the EnergyPolicy and Conservation Act (42 U.S.C. 6317)is amended to read as follows:‘‘ENERGY CONSERVATION STANDARDS FOR HIGH-

INTENSITY DISCHARGE LAMPS, DISTRIBUTIONTRANSFORMERS, AND SMALL ELECTRIC MO-TORS

‘‘SEC. 346. (a)(1) The Secretary shall, with-in 30 months after the date of the enactmentof the Energy Policy Act of 1992, prescribetesting requirements for those high-inten-sity discharge lamps and distribution trans-formers for which the Secretary makes a de-termination that energy conservation stand-ards would be technologically feasible andeconomically justified, and would result insignificant energy savings.

‘‘(2) The Secretary shall, within 18 monthsafter the date on which testing requirementsare prescribed by the Secretary pursuant toparagraph (1), prescribe, by rule, energy con-servation standards for those high-intensitydischarge lamps and distribution transform-ers for which the Secretary prescribed test-ing requirements under paragraph (1).

‘‘(3) Any standard prescribed under para-graph (2) with respect to high-intensity dis-charge lamps shall apply to such lamps man-ufactured 36 months after the date such ruleis published.

‘‘(b)(1) The Secretary shall, within 30months after the date of the enactment ofthe Energy Policy Act of 1992, prescribe test-ing requirements for those small electricmotors for which the Secretary makes a de-termination that energy conservation stand-ards would be technologically feasible andeconomically justified, and would result insignificant energy savings.

‘‘(2) The Secretary shall, within 18 monthsafter the date on which testing requirementsare prescribed by the Secretary pursuant toparagraph (1), prescribe, by rule, energy con-servation standards for those small electricmotors for which the Secretary prescribedtesting requirements under paragraph (1).

‘‘(3) Any standard prescribed under para-graph (2) shall apply to small electric motorsmanufactured 60 months after the date such


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1992 T121.25rule is published or, in the case of small elec-tric motors which require listing or certifi-cation by a nationally recognized testinglaboratory, 84 months after such date. Suchstandards shall not apply to any small elec-tric motor which is a component of a coveredproduct under section 322(a) or a coveredequipment under section 340.

‘‘(c) In establishing any standard underthis section, the Secretary shall take intoconsideration the criteria contained in sec-tion 325(n).

‘‘(d) The Secretary shall, within sixmonths after the date on which energy con-servation standards are prescribed by theSecretary for high-intensity discharge lampsand distribution transformers pursuant tosubsection (a)(2) and small electric motorspursuant to subsection (b)(2), prescribe label-ing requirements for such lamps, transform-ers, and small electric motors.

‘‘(e) Beginning on the date which occurssix months after the date on which a labelingrule is prescribed for a product under sub-section (d), each manufacturer of a productto which such a rule applies shall provide alabel which meets, and is displayed in ac-cordance with, the requirements of suchrule.

‘‘(f)(1) After the date on which a manufac-turer must provide a label for a product pur-suant to subsection (e)—

‘‘(A) each such product shall be considered,for purposes of paragraphs (1) and (2) of sec-tion 332(a), a new covered product to which arule under section 324 applies; and

‘‘(B) it shall be unlawful for any manufac-turer or private labeler to distribute in com-merce any new product for which an energyconservation standard is prescribed undersubsection (a)(2) or (b)(2) which is not in con-formity with the applicable energy conserva-tion standard.

‘‘(2) For purposes of section 333(a), para-graph (1) of this subsection shall be consid-ered to be a part of section 332.’’.

(b) TECHNICAL AMENDMENT.—The table ofcontents of such Act is amended by strikingout the item for section 346 and inserting inlieu thereof the following new item:‘‘Sec. 346. Energy conservation standards for

high-intensity discharge lamps,distribution transformers, andsmall electric motors.’’.

(c) STUDY OF UTILITY DISTRIBUTION TRANS-FORMERS.—The Secretary shall evaluate thepracticability, cost-effectiveness, and poten-tial energy savings of replacing, or upgrad-ing components of, existing utility distribu-tion transformers during routine mainte-nance and, not later than 18 months after thedate of the enactment of this Act, report thefindings of such evaluation to the Congresswith recommendations on how such energysavings, if any, could be achieved.SEC. 125. ENERGY EFFICIENCY INFORMATION

FOR COMMERCIAL OFFICE EQUIP-MENT.

(a) IN GENERAL.—(1) The Secretary shall,after consulting with the Computer andBusiness Equipment Manufacturers Associa-tion and other interested organizations, pro-vide financial and technical assistance tosupport a voluntary national testing and in-formation program for those types of com-mercial office equipment that are widelyused and for which there is a potential forsignificant energy savings as a result of suchprogram.

(2) Such program shall—(A) consistent with the objectives of para-

graph (1), determine the commercial officeequipment to be covered under such pro-gram;

(B) include specifications for testing proce-dures that will enable purchasers of suchcommercial office equipment to make moreinformed decisions about the energy effi-ciency and costs of alternative products; and

(C) include information, which may be dis-seminated through catalogs, trade publica-tions, labels, or other mechanisms, that willallow consumers to assess the energy con-sumption and potential cost savings of alter-native products.

(3) Such program shall be developed by anappropriate organization (composed of inter-ested parties) according to commonly ac-cepted procedures for the development of na-tional testing procedure and labeling pro-grams.

(b) MONITORING.—The Secretary shall mon-itor and evaluate the efforts to develop theprogram described in subsection (a) and, notlater than three years after the date of theenactment of this Act, shall make a deter-mination as to whether such program is con-sistent with the objectives of subsection (a).

(c) ALTERNATIVE SYSTEM.—(1) If the Sec-retary makes a determination under sub-section (b) that a voluntary national testingand information program for commercial of-fice equipment consistent with the objec-tives of subsection (a) has not been devel-oped, the Secretary shall, after consultationwith the National Institute of Standards andTechnology, develop, not later than twoyears after such determination, test proce-dures under section 323 of the Energy Policyand Conservation Act (42 U.S.C. 6293) forsuch commercial office equipment.

(2) Not later than one year after the Sec-retary develops test procedures under para-graph (1), the Federal Trade Commission(hereafter in this section referred to as the‘‘Commission’’) shall prescribe labeling rulesunder section 324 of such Act (42 U.S.C. 6294)for commercial office equipment for whichthe Secretary has prescribed test proceduresunder paragraph (1) except that, with respectto any type of commercial office equipment(or class thereof), the Secretary may deter-mine that such labeling is not techno-logically feasible or economically justifiedor is not likely to assist consumers in mak-ing purchasing decisions.


(4) For purposes of section 327(a) of suchAct, the term ‘‘this part’’ includes this sub-section to the extent necessary to carry outthis subsection.SEC. 126. ENERGY EFFICIENCY INFORMATION

FOR LUMINAIRES.(a) IN GENERAL.—(1) The Secretary shall,

after consulting with the National ElectricManufacturers Association, the AmericanLighting Association, and other interestedorganizations, provide financial and tech-nical assistance to support a voluntary na-tional testing and information program forthose types of luminaires that are widelyused and for which there is a potential forsignificant energy savings as a result of suchprogram.

(2) Such program shall—(A) consistent with the objectives of para-

graph (1), determine the luminaires to becovered under such program;

(B) include specifications for testing proce-dures that will enable purchasers of suchluminaires to make more informed decisionsabout the energy efficiency and costs of al-ternative products; and

(C) include information, which may be dis-seminated through catalogs, trade publica-tions, labels, or other mechanisms, that willallow consumers to assess the energy con-sumption and potential cost savings of alter-native products.

(3) Such program shall be developed by anappropriate organization (composed of inter-

ested parties) according to commonly ac-cepted procedures for the development of na-tional testing procedures and labeling pro-grams.

(b) MONITORING.—The Secretary shall mon-itor and evaluate the efforts to develop theprogram described in subsection (a) and, notlater than three years after the date of theenactment of this Act, shall make a deter-mination as to whether the program devel-oped is consistent with the objectives of sub-section (a).

(c) ALTERNATIVE SYSTEM.—(1) If the Sec-retary makes a determination under sub-section (b) that a voluntary national testingand information program for luminaires con-sistent with the objectives of subsection (a)has not been developed, the Secretary shall,after consultation with the National Insti-tute of Standards and Technology, develop,not later than two years after such deter-mination, test procedures under section 323of the Energy Policy and Conservation Act(42 U.S.C. 6293) for such luminaires.

(2) Not later than one year after the Sec-retary develops test procedures under para-graph (1), the Federal Trade Commission(hereafter in this section referred to as the‘‘Commission’’) shall prescribe labeling rulesunder section 324 of such Act (42 U.S.C. 6294)for those luminaires for which the Secretaryhas prescribed test procedures under para-graph (1) except that, with respect to anytype of luminaire (or class thereof), the Sec-retary may determine that such labeling isnot technologically feasible or economicallyjustified or is not likely to assist consumersin making purchasing decisions.


(4) For purposes of section 327(a) of suchAct, the term ‘‘this part’’ includes this sub-section to the extent necessary to carry outthis subsection.SEC. 127. REPORT ON THE POTENTIAL OF COOP-

ERATIVE ADVANCED APPLIANCE DE-VELOPMENT.

(a) IN GENERAL.—Not later than 18 monthsafter the date of the enactment of this Act,the Secretary shall, in consultation with theAdministrator of the Environmental Protec-tion Agency, utilities, and appliance manu-facturers, prepare and submit to the Con-gress, a report on the potential for the devel-opment and commercialization of applianceswhich are substantially more efficient thanrequired by Federal or State law.

(b) IDENTIFICATION OF HIGH-EFFICIENCY AP-PLIANCES.—The report submitted under sub-section (a) shall identify candidate high-effi-ciency appliances which meet the followingcriteria:

(1) The potential exists for substantial im-provement in the appliance’s energy effi-ciency, beyond the minimum established inFederal and State law.

(2) There is the potential for significant en-ergy savings at the national or regionallevel.

(3) Such appliances are likely to be cost-ef-fective for consumers.

(4) Electric, water, or gas utilities are pre-pared to support and promote the commer-cialization of such appliances.

(5) Manufacturers are unlikely to under-take development and commercialization ofsuch appliances on their own, or develop-ment and production would be substantiallyaccelerated by support to manufacturers.

(c) RECOMMENDATIONS AND PROPOSALS.—The report submitted under subsection (a)shall also—

(1) describe the general actions the Sec-retary or the Administrator of the Environ-

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OCTOBER 5T121.25mental Protection Agency could take to co-ordinate and assist utilities and appliancemanufacturers in developing and commer-cializing highly efficient appliances;

(2) describe specific proposals for Depart-ment of Energy or Environmental ProtectionAgency assistance to utilities and appliancemanufacturers to promote the developmentand commercialization of highly efficient ap-pliances;

(3) identify methods by which Federal pur-chase of highly efficient appliances could as-sist in the development and commercializa-tion of such appliances; and

(4) identify the funding levels needed to de-velop and implement a Federal program toassist in the development and commer-cialization of highly efficient appliances.SEC. 128. EVALUATION OF UTILITY EARLY RE-

PLACEMENT PROGRAMS FOR APPLI-ANCES.

Within 18 months after the date of the en-actment of this Act, the Secretary, in con-sultation with the Administrator of the En-vironmental Protection Agency, utilities,and appliance manufacturers, shall evaluateand report to the Congress on the energysavings and environmental benefits of pro-grams which are directed to the early re-placement of older, less efficient appliancespresently in use by consumers with existingproducts which are more efficient than re-quired by Federal law. For the purposes ofthis section, the term ‘‘appliance’’ meansthose consumer products specified in section322(a).

Subtitle D—IndustrialSEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL

FACILITIES.(a) GRANT PROGRAM.—(1) IN GENERAL.—The Secretary shall make

grants to industry associations to supportprograms to improve energy efficiency in in-dustry. In order to be eligible for a grantunder this subsection, an industry associa-tion shall establish a voluntary energy effi-ciency improvement target program.

(2) AWARDING OF GRANTS.—The Secretaryshall request project proposals and provideannual grants on a competitive basis. Inevaluating grant proposals under this sub-section, the Secretary shall consider—

(A) potential energy savings;(B) potential environmental benefits;(C) the degree of cost sharing;(D) the degree to which new and innovative

technologies will be encouraged;(E) the level of industry involvement;(F) estimated project cost-effectiveness;

and(G) the degree to which progress toward

the energy improvement targets can be mon-itored.

(3) ELIGIBLE PROJECTS.—Projects eligiblefor grants under this subsection may includethe following:

(A) Workshops.(B) Training seminars.(C) Handbooks.(D) Newsletters.(E) Data bases.(F) Other activities approved by the Sec-

retary.(4) LIMITATION ON COST SHARING.—Grants

provided under this subsection shall not ex-ceed $250,000 and each grant shall not exceed75 percent of the total cost of the project forwhich the grant is made.

(5) AUTHORIZATION.—There are authorizedto be appropriated such sums as are nec-essary to carry out this subsection.

(b) AWARD PROGRAM.—The Secretary shallestablish an annual award program to recog-nize those industry associations or individ-ual industrial companies that have signifi-cantly improved their energy efficiency.

(c) REPORT ON INDUSTRIAL REPORTING ANDVOLUNTARY TARGETS.—Not later than one

year after the date of the enactment of thisAct, the Secretary shall, in consultationwith affected industries, evaluate and reportto the Congress regarding the establishmentof Federally mandated energy efficiency re-porting requirements and voluntary energyefficiency improvement targets for energyintensive industries. Such report shall in-clude an evaluation of the costs and benefitsof such reporting requirements and vol-untary energy efficiency improvement tar-gets, and recommendations regarding therole of such activities in improving energyefficiency in energy intensive industries.SEC. 132. PROCESS-ORIENTED INDUSTRIAL EN-

ERGY EFFICIENCY.(a) DEFINITIONS.—For the purposes of this

section—(1) the term ‘‘covered industry’’ means the

food and food products industry, lumber andwood products industry, petroleum and coalproducts industry, and all other manufactur-ing industries specified in Standard Indus-trial Classification Codes 20 through 39 (orsuccessor classification codes);

(2) the term ‘‘process-oriented industrialassessment’’ means—

(A) the identification of opportunities inthe production process (from the introduc-tion of materials to final packaging of theproduct for shipping) for—

(i) improving energy efficiency;(ii) reducing environmental impact; and(iii) designing technological improvements

to increase competitiveness and achievecost-effective product quality enhancement;

(B) the identification of opportunities forimproving the energy efficiency of lighting,heating, ventilation, air conditioning, andthe associated building envelope; and

(C) the identification of cost-effective op-portunities for using renewable energy tech-nology in the production process and in thesystems described in subparagraph (B); and

(3) the term ‘‘utility’’ means any person,State agency (including any municipality),or Federal agency, which sells electric or gasenergy to retail customers.

(b) GRANT PROGRAM.—(1) USE OF FUNDS.—The Secretary shall, to

the extent funds are made available for suchpurpose, make grants to States which, con-sistent with State law, shall be used for thefollowing purposes:

(A) To promote, through appropriate insti-tutions such as universities, nonprofit orga-nizations, State and local government enti-ties, technical centers, utilities, and tradeorganizations, the use of energy-efficienttechnologies in covered industries.

(B) To establish programs to train individ-uals (on an industry-by-industry basis) inconducting process-oriented industrial as-sessments and to encourage the use of suchtrained assessors.

(C) To assist utilities in developing, test-ing, and evaluating energy efficiency pro-grams and technologies for industrial cus-tomers in covered industries.

(2) CONSULTATION.—States receiving grantsunder this subsection shall consult with util-ities and representatives of affected indus-tries, as appropriate, in determining themost effective use of such funds consistentwith the requirements of paragraph (1).

(3) ELIGIBILITY CRITERIA.—Not later than 1year after the date of the enactment of thisAct, the Secretary shall establish eligibilitycriteria for grants made pursuant to thissubsection. Such criteria shall require aState applying for a grant to demonstratethat such State—

(A) pursuant to section 111(a) of the PublicUtility and Regulatory Policies Act of 1978(16 U.S.C. 2621(a)), has considered and made adetermination regarding the implementationof the standards specified in paragraphs (7)and (8) of section 111(d) of such Act (with re-

spect to integrated resources planning andinvestments in conservation and demandmanagement); and

(B) by legislation or regulation—(i) allows utilities to recover the costs pru-

dently incurred in providing process-orientedindustrial assessments; and

(ii) encourages utilities to provide to cov-ered industries—

(I) process-oriented industrial assessments;and

(II) financial incentives for implementingenergy efficiency improvements.

(4) ALLOCATION OF FUNDS.—Grants madepursuant to this subsection shall be allo-cated each fiscal year among States meetingthe criteria specified in paragraph (3) whohave submitted applications 60 days beforethe first day of such fiscal year. Such alloca-tion shall be made in accordance with a for-mula to be prescribed by the Secretary basedon each State’s share of value added in in-dustry (as determined by the Census of Man-ufacturers) as a percentage of the valueadded by all such States.

(5) RENEWAL OF GRANTS.—A grant underthis subsection may continue to be renewedafter 2 consecutive fiscal years during whicha State receives a grant under this sub-section, subject to the availability of funds,if—

(A) the Secretary determines that thefunds made available to the State during theprevious 2 years were used in a manner re-quired under paragraph (1); and

(B) such State demonstrates, in a mannerprescribed by the Secretary, utility partici-pation in programs established pursuant tothis subsection.

(6) COORDINATION WITH OTHER FEDERAL PRO-GRAMS.—In carrying out the functions de-scribed in paragraph (1), States shall, to theextent practicable, coordinate such func-tions with activities and programs conductedby the Energy Analysis and Diagnostic Cen-ters of the Department of Energy and theManufacturing Technology Centers of theNational Institute of Standards and Tech-nology.

(c) OTHER FEDERAL ASSISTANCE.—(1) ASSESSMENT CRITERIA.—Not later than 2

years after the date of the enactment of thisAct, the Secretary shall, by contract withnonprofit organizations with expertise inprocess-oriented industrial energy efficiencytechnologies, establish and, as appropriate,update criteria for conducting process-ori-ented industrial assessments on an industry-by-industry basis. Such criteria shall bemade available to State and local govern-ment, public utility commissions, utilities,representatives of affected process-orientedindustries, and other interested parties.

(2) DIRECTORY.—The Secretary shall estab-lish a nationwide directory of organizationsoffering industrial energy efficiency assess-ments, technologies, and services consistentwith the purposes of this section. Such direc-tory shall be made available to State govern-ments, public utility commissions, utilities,industry representatives, and other inter-ested parties.

(3) AWARD PROGRAM.—The Secretary shallestablish an annual award program to recog-nize utilities operating outstanding or inno-vative industrial energy efficiency tech-nology assistance programs.

(4) MEETINGS.—In order to further the pur-poses of this section, the Secretary shallconvene annual meetings of parties inter-ested in process-oriented industrial assess-ments, including representatives of Stategovernment, public utility commissions,utilities, and affected process-oriented indus-tries.

(d) REPORT.—Not later than 2 years afterthe date of the enactment of this Act, andannually thereafter, the Secretary shall sub-mit to the Congress a report which—


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1992 T121.25(1) identifies barriers encountered in im-

plementing this section;(2) makes recommendations for over-

coming such barriers;(3) documents the results achieved by the

programs established and grants awardedpursuant to this section;

(4) reviews any difficulties encountered byindustry in securing and implementing en-ergy efficiency technologies recommended inprocess-oriented industrial assessments orotherwise identified as a result of programsestablished pursuant to this section; and

(5) recommends methods for further pro-moting the distribution and implementationof energy efficiency technologies consistentwith the purposes of this section.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as may be necessary to carry out thepurposes of this section.SEC. 133. INDUSTRIAL INSULATION AND AUDIT

GUIDELINES.(a) VOLUNTARY GUIDELINES FOR ENERGY EF-

FICIENCY AUDITING AND INSULATING.—Notlater than 18 months after the date of the en-actment of this Act, the Secretary, afterconsultation with utilities, major industrialenergy consumers, and representatives of theinsulation industry, shall establish vol-untary guidelines for—

(1) the conduct of energy efficiency auditsof industrial facilities to identify cost-effec-tive opportunities to increase energy effi-ciency; and

(2) the installation of insulation to achievecost-effective increases in energy efficiencyin industrial facilities.

(b) EDUCATIONAL AND TECHNICAL ASSIST-ANCE.—The Secretary shall conduct a pro-gram of educational and technical assistanceto promote the use of the voluntary guide-lines established under subsection (a).

(c) REPORT.—Not later than 2 years afterthe date of the enactment of this Act, and bi-ennially thereafter, the Secretary shall re-port to the Congress on activities conductedpursuant to this section, including—

(1) a review of the status of industrial en-ergy auditing procedures; and

(2) an evaluation of the effectiveness of theguidelines established under subsection (a)and the responsiveness of the industrial sec-tor to such guidelines.

Subtitle E—State and Local AssistanceSEC. 141. AMENDMENTS TO STATE ENERGY CON-

SERVATION PROGRAM.(a) STATE BUILDINGS ENERGY INCENTIVE

FUND.—(1) IN GENERAL.—Section 363 of the Energy

Policy and Conservation Act (42 U.S.C. 6323)is amended by adding at the end the follow-ing new subsection:

‘‘(f) If the Secretary determines that aState has demonstrated a commitment toimproving the energy efficiency of buildingswithin such State, the Secretary may, begin-ning in fiscal year 1994, provide up to$1,000,000 to such State for deposit into a re-volving fund established by such State forthe purpose of financing energy efficiencyimprovements in State and local governmentbuildings. In making such determination theSecretary shall consider whether—

‘‘(1) such State, or a majority of the unitsof local government with jurisdiction overbuilding energy codes within such State, hasadopted codes for energy efficiency in newbuildings that are at least as stringent asAmerican Society of Heating, Refrigerating,and Air-Conditioning Engineers Standard90.1–1989 (with respect to commercial build-ings) and Council of American Building Offi-cials Model Energy Code, 1992 (with respectto residential buildings);

‘‘(2) such State has established a program,including a revolving fund, to finance energyefficiency improvement projects in State and

local government facilities and buildings;and

‘‘(3) such State has obtained funding fromnon-Federal sources, including but not lim-ited to, oil overcharge funds, State or localgovernment appropriations, or utility con-tributions (including rebates) equal to orgreater than three times the amount pro-vided by the Secretary under this subsectionfor deposit into such revolving fund.’’.

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 365(f) of such Act (42 U.S.C. 6325(f)) isamended—

(A) by striking ‘‘(f) For the purpose’’ andinserting the following: ‘‘(f)(1) Except as pro-vided in paragraph (2), for the purpose’’; and

(B) by inserting at the end the following:‘‘(2) For the purposes of carrying out sec-

tion 363(f), there is authorized to be appro-priated for fiscal year 1994 and each fiscalyear thereafter such sums as may be nec-essary, to remain available until expended.’’.

(b) TRAINING OF BUILDING DESIGNERS ANDCONTRACTORS; BUILDING RETROFIT STAND-ARDS; FEASIBILITY; RURAL RENEWABLE EN-ERGY.—Subsection 362(d) of the Energy Pol-icy and Conservation Act (42 U.S.C. 6322(d))is amended—

(1) in paragraph (12) by striking ‘‘and’’;(2) by redesignating paragraph (13) as para-

graph (17); and(3) by inserting after paragraph (12) the fol-

lowing new paragraphs:‘‘(13) programs (enlisting appropriate trade

and professional organizations in the devel-opment and financing of such programs) toprovide training and education (including, ifappropriate, training workshops, practicemanuals, and testing for each area of energyefficiency technology) to building designersand contractors involved in building designand construction or in the sale, installation,and maintenance of energy systems andequipment to promote building energy effi-ciency improvements;

‘‘(14) programs for the development ofbuilding retrofit standards and regulations,including retrofit ordinances enforced at thetime of the sale of a building;

‘‘(15) support for prefeasibility and feasibil-ity studies for projects that utilize renew-able energy and energy efficiency resourcetechnologies in order to facilitate access tocapital and credit for such projects;

‘‘(16) programs to facilitate and encouragethe voluntary use of renewable energy tech-nologies for eligible participants in Federalagency programs, including the Rural Elec-trification Administration and the FarmersHome Administration; and’’

(c) STATE ENERGY CONSERVATION PLAN RE-QUIREMENT.—

(1) IN GENERAL.—Section 362(c)(5) of theEnergy Policy and Conservation Act (42U.S.C. 6322(c)(5)) is amended by striking ‘‘;and’’ and by inserting the following: ‘‘and toturn such vehicle left from a one-way streetonto a one-way street at a red light afterstopping; and’’.

(2) EFFECTIVE DATE.—The amendmentmade by paragraph (1) shall take effect Janu-ary 1, 1995.

(d) STUDY REGARDING IMPACT OF PERMIT-TING RIGHT AND LEFT TURNS ON REDLIGHTS.—

(1) IN GENERAL.—The Administrator of theNational Highway Traffic Safety Adminis-tration, in consultation with State agencieswith jurisdiction over traffic safety issues,shall conduct a study on the safety impact ofthe requirement specified in section 362(c)(5)of the Energy Policy and Conservation Act(42 U.S.C. 6322(c)(5)), particularly with re-spect to the impact on pedestrian safety.

(2) REPORT.—The Administrator shall re-port the findings of the study conductedunder paragraph (1) to the Congress and theSecretary not later than 2 years after thedate of the enactment of this Act.

SEC. 142. AMENDMENTS TO LOW-INCOME WEATH-ERIZATION PROGRAM.

(a) PRIVATE SECTOR INVESTMENTS IN LOW-INCOME WEATHERIZATION.—Part A of title IVof the Energy Conservation and ProductionAct (42 U.S.C. 6861 et seq.) is amended by in-serting after section 414 the following newsections:‘‘SEC. 414A. PRIVATE SECTOR INVESTMENTS.

‘‘(a) IN GENERAL.—The Secretary shall, tothe extent funds are made available for suchpurpose, provide financial assistance to enti-ties receiving funding from the Federal Gov-ernment or from a State through a weather-ization assistance program under section 413or section 414 for the development and initialimplementation of partnerships, agreements,or other arrangements with utilities, privatesector interests, or other institutions, underwhich non-Federal financial assistancewould be made available to support programswhich install energy efficiency improve-ments in low-income housing.

‘‘(b) USE OF FUNDS.—Financial assistanceprovided under this section may be usedfor—

‘‘(1) the negotiation of such partnerships,agreements and other arrangements;

‘‘(2) the presentation of arguments beforeState or local agencies;

‘‘(3) expert advice on the development ofsuch partnerships, agreements, and other ar-rangements; or

‘‘(4) other activities reasonably associatedwith the development and initial implemen-tation of such arrangements.

‘‘(c) CONDITIONS.—(1) Financial assistanceprovided under this section to entities otherthan States shall, to the extent practicable,coincide with the timing of financial assist-ance provided to such entities under section413 or section 414.

‘‘(2) Not less than 80 percent of amountsprovided under this section shall be providedto entities other than States.

‘‘(3) A recipient of financial assistanceunder this section shall have up to threeyears to complete projects undertaken withsuch assistance.‘‘SEC. 414B. TECHNICAL TRANSFER GRANTS.

‘‘(a) IN GENERAL.—The Secretary may, tothe extent funds are made available, providefinancial assistance to entities receivingfunding from the Federal Government orfrom a State through a weatherization as-sistance program under section 413 or section414 for—

‘‘(1) evaluating technical and managementmeasures which increase program and/or pri-vate entity performance in weatherizing low-income housing;

‘‘(2) producing technical information foruse by persons involved in weatherizing low-income housing;

‘‘(3) exchanging information; and‘‘(4) conducting training programs for per-

sons involved in weatherizing low-incomehousing.

‘‘(b) CONDITIONS.—(1) Not less than 50 per-cent of amounts provided under this sectionshall be awarded to entities other thanStates.

‘‘(2) A recipient of financial assistanceunder this section may contract with non-profit entities to carry out all or part of theactivities for which such financial assistanceis provided.’’.

(b) USE OF SOLAR THERMAL WATER HEAT-ERS AND WOOD-BURNING HEATING APPLIANCESFOR LOW-INCOME WEATHERIZATION.—Section412(9) of the Energy Conservation and Pro-duction Act (42 U.S.C. 6862(9)) is amended—

(1) by moving subparagraph (G) 2-ems tothe right and by striking ‘‘and’’;

(2) by redesignating subparagraph (H) assubparagraph (J); and

(3) by inserting after subparagraph (G), thefollowing:

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OCTOBER 5T121.25‘‘(H) solar thermal water heaters;‘‘(I) wood-heating appliances; and’’.(c) CLERICAL AMENDMENT.—The table of

contents for part A of title IV of the EnergyConservation and Production Act is amendedby inserting after the item related to section414 the following items:‘‘Sec. 414A. Private sector investments.‘‘Sec. 414B. Technical transfer grants.’’.SEC. 143. ENERGY EXTENSION SERVICE PRO-

GRAM.(a) REPEAL.—The National Energy Exten-

sion Service Act, title V of Public Law 95–39,is repealed.

(b) CONFORMING AMENDMENT.—Section 103of the Energy Reorganization Act of 1974 (42U.S.C. 5813(7)) is amended—

(1) by striking paragraph (7); and(2) by redesignating paragraphs (8), (9), (10),

(11), and (12) as paragraphs (7), (8), (9), (10),and (11), respectively.

Subtitle F—Federal Agency EnergyManagement

SEC. 151. DEFINITIONS.For purposes of this subtitle—(1) the term ‘‘agency’’ means has the

meaning given such term in section 551(1) oftitle 5, United States Code, except that suchterm does not include the United StatesPostal Service;

(2) the term ‘‘facility energy supervisor’’means the employee with responsibility forthe daily operations of a Federal facility, in-cluding the management, installation, oper-ation, and maintenance of energy systems inFederal facilities which may include morethan one building;

(3) the term ‘‘trained energy manager’’means a person who has demonstrated pro-ficiency, or who has completed a course ofstudy in the areas of fundamentals of build-ing energy systems, building energy codesand applicable professional standards, en-ergy accounting and analysis, life-cycle costmethodology, fuel supply and pricing, and in-strumentation for energy surveys and audits;

(4) the term ‘‘Task Force’’ means theInteragency Energy Management Task Forceestablished under section 547 of the NationalEnergy Conservation Policy Act (42 U.S.C.8257); and

(5) the term ‘‘energy conservation meas-ures’’ has the meaning given such term insection 551(4) of the National Energy Con-servation Policy Act.SEC. 152. FEDERAL ENERGY MANAGEMENT

AMENDMENTS.(a) PURPOSE.—Section 542 of the National

Energy Conservation Policy Act (42 U.S.C.8252) is amended by inserting after ‘‘use ofenergy’’ the following: ‘‘and water, and theuse of renewable energy sources,’’.

(b) REQUIREMENTS FOR FEDERAL AGEN-CIES.—Section 543 of such Act (42 U.S.C.8253(a)) is amended—

(1) in the section heading by striking‘‘GOALS’’ and inserting ‘‘REQUIREMENTS’’;

(2) in subsection (a) by striking ‘‘GOAL’’and inserting ‘‘REQUIREMENT’’;

(3) in subsection (a)(1), by striking the pe-riod at the end and inserting the following:‘‘and so that the energy consumption pergross square foot of its Federal buildings inuse during the fiscal year 2000 is at least 20percent less than the energy consumptionper gross square foot of its Federal buildingsin use during fiscal year 1985.’’; and

(4) by redesignating subsection (b) as sub-section (d) and inserting after subsection (a)the following:

‘‘(b) ENERGY MANAGEMENT REQUIREMENTFOR FEDERAL AGENCIES.—(1) Not later thanJanuary 1, 2005, each agency shall, to themaximum extent practicable, install in Fed-eral buildings owned by the United States allenergy and water conservation measureswith payback periods of less than 10 years, asdetermined by using the methods and proce-dures developed pursuant to section 544.

‘‘(2) The Secretary may waive the require-ments of this subsection for any agency forsuch periods as the Secretary may determineif the Secretary finds that the agency is tak-ing all practicable steps to meet the require-ments and that the requirements of this sub-section will pose an unacceptable burdenupon the agency. If the Secretary waives therequirements of this subsection, the Sec-retary shall notify the Congress promptly inwriting with an explanation and a justifica-tion of the reasons for such waiver.

‘‘(3) This subsection shall not apply to anagency’s facilities that generate or transmitelectric energy or to the uranium enrich-ment facilities operated by the Departmentof Energy.

‘‘(4) An agency may participate in the En-vironmental Protection Agency’s ‘GreenLights’ program for purposes of receivingtechnical assistance in complying with therequirements of this section.

‘‘(c) EXCLUSIONS.—(1) An agency may ex-clude, from the energy consumption require-ments for the year 2000 established undersubsection (a) and the requirements of sub-section (b)(1), any Federal building or collec-tion of Federal buildings, and the associatedenergy consumption and gross square foot-age, if the head of such agency finds thatcompliance with such requirements would beimpractical. A finding of impracticabilityshall be based on the energy intensiveness ofactivities carried out in such Federal build-ings or collection of Federal buildings, thetype and amount of energy consumed, thetechnical feasibility of making the desiredchanges, and, in the cases of the Depart-ments of Defense and Energy, the uniquecharacter of certain facilities operated bysuch Departments.

‘‘(2) Each agency shall identify and list, ineach report made under section 548(a), theFederal buildings designated by it for suchexclusion. The Secretary shall review suchfindings for consistency with the imprac-ticability standards set forth in paragraph(1), and may within 90 days after receipt ofthe findings, reverse a finding of imprac-ticability. In the case of any such reversal,the agency shall comply with the energyconsumption requirements for the buildingconcerned.’’.

(c) IMPLEMENTATION.—Section 543(d) ofsuch Act (as redesignated by subsection(b)(4) of this section) is amended—

(1) in the material preceding paragraph (1),by striking out ‘‘To achieve the goal estab-lished in subsection (a),’’ and inserting inlieu thereof the following: ‘‘The Secretaryshall consult with the Secretary of Defenseand the Administrator of General Services indeveloping guidelines for the implementa-tion of this part. To meet the requirementsof this section,’’;

(2) by striking out paragraph (1) and in-serting in lieu thereof the following:

‘‘(1) prepare and submit to the Secretary,not later than December 31, 1993, a plan de-scribing how the agency intends to meetsuch requirements, including how it will—

‘‘(A) designate personnel primarily respon-sible for achieving such requirements;

‘‘(B) identify high priority projectsthrough calculation of payback periods;

‘‘(C) take maximum advantage of con-tracts authorized under title VIII of this Act,of financial incentives and other servicesprovided by utilities for efficiency invest-ment, and of other forms of financing to re-duce the direct costs to the Government; and

‘‘(D) otherwise implement this part;’’;(3) in paragraph (2), by inserting before the

semicolon at the end the following: ‘‘and up-date such surveys as needed, incorporatingany relevant information obtained from thesurvey conducted pursuant to section 550’’;

(4) by striking out paragraph (3) and in-serting in lieu thereof the following:

‘‘(3) using such surveys, determine the costand payback period of energy and water con-servation measures likely to achieve the re-quirements of this section;

‘‘(4) install energy and water conservationmeasures that will achieve the requirementsof this section through the methods and pro-cedures established pursuant to section 544;and’’; and

(5) by redesignating paragraph (4) as para-graph (5).

(d) LIFE CYCLE COST METHODS AND PROCE-DURES.—Section 544 of such Act (42 U.S.C.8254) is amended—

(1) in subsection (a), in the material pre-ceding paragraph (1), by striking out ‘‘Na-tional Bureau of Standards,’’ and insertingin lieu thereof ‘‘National Institute of Stand-ards and Technology,’’; and

(2) in subsection (b)(2), by striking ‘‘agencyshall’’ and all that follows through the pe-riod at the end and inserting the following:‘‘agency shall, after January 1, 1994, fullyconsider the efficiency of all potential build-ing space at the time of renewing or enteringinto a new lease.’’.

(e) IDENTIFICATION OF FUNDS.—Section 545of such Act (42 U.S.C. 8255) is amended toread as follows:‘‘SEC. 545. BUDGET TREATMENT FOR ENERGY

CONSERVATION MEASURES.‘‘The President shall transmit to the Con-

gress, along with each budget that is submit-ted to the Congress under section 1105 oftitle 31, United States Code, a statement ofthe amount of appropriations requested insuch budget, if any, on an individual agencybasis, for—

‘‘(1) electric and other energy costs to beincurred in operating and maintaining agen-cy facilities; and

‘‘(2) compliance with the provisions of thispart, the Energy Policy and ConservationAct (42 U.S.C. 6201 et seq.), and all applicableExecutive orders, including Executive Order12003 (42 U.S.C. 6201 note) and ExecutiveOrder 12759 (56 Fed. Reg. 16257).’’.

(f) INCENTIVE PROGRAM.—Section 546 ofsuch Act (42 U.S.C. 8256) is amended—

(1) by striking ‘‘(a) IN GENERAL.—’’ and in-serting in lieu thereof ‘‘(a) CONTRACTS.—(1)’’;

(2) by redesignating subsection (b) as para-graph (2) and amending it to read as follows:

‘‘(2) The Secretary shall, not later than 18months after the date of the enactment ofthe Energy Policy Act of 1992 and after con-sultation with the Director of the Office ofManagement and Budget, the Secretary ofDefense, and the Administrator of GeneralServices, develop appropriate procedures andmethods for use by agencies to implementthe incentives referred to in paragraph (1).’’;

(3) by striking out subsection (c); and(4) by adding at the end the following new

subsections:‘‘(b) FEDERAL ENERGY EFFICIENCY FUND.—

(1) The Secretary shall establish a FederalEnergy Efficiency Fund to provide grants toagencies to assist them in meeting the re-quirements of section 543.

‘‘(2) Not later than June 30, 1993, the Sec-retary shall issue guidelines to be followedby agencies submitting proposals for suchgrants. All agencies shall be eligible to sub-mit proposals for grants under the Fund.

‘‘(3) The Secretary shall award grants fromthe Fund after a competitive assessment ofthe technical and economic effectiveness ofeach agency proposal. The Secretary shallconsider the following factors in determiningwhether to provide funding under this sub-section:

‘‘(A) The cost-effectiveness of the project.‘‘(B) The amount of energy and cost sav-

ings anticipated to the Federal Government.‘‘(C) The amount of funding committed to

the project by the agency requesting finan-cial assistance.


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1992 T121.25‘‘(D) The extent that a proposal leverages

financing from other non-Federal sources.‘‘(E) Any other factor which the Secretary

determines will result in the greatestamount of energy and cost savings to theFederal Government.

‘‘(4) There are authorized to be appro-priated, to remain available to be expended,to carry out this subsection not more than$10,000,000 for fiscal year 1994, $50,000,000 forfiscal year 1995, and such sums as may benecessary for fiscal years thereafter.

‘‘(c) UTILITY INCENTIVE PROGRAMS.—(1)Agencies are authorized and encouraged toparticipate in programs to increase energyefficiency and for water conservation or themanagement of electricity demand con-ducted by gas, water, or electric utilities andgenerally available to customers of suchutilities.

‘‘(2) Each agency may accept any financialincentive, goods, or services generally avail-able from any such utility, to increase en-ergy efficiency or to conserve water or man-age electricity demand.

‘‘(3) Each agency is encouraged to enterinto negotiations with electric, water, andgas utilities to design cost-effective demandmanagement and conservation incentive pro-grams to address the unique needs of facili-ties utilized by such agency.

‘‘(4) If an agency satisfies the criteriawhich generally apply to other customers ofa utility incentive program, such agencymay not be denied collection of rebates orother incentives.

‘‘(5)(A) An amount equal to fifty percent ofthe energy and water cost savings realizedby an agency (other than the Department ofDefense) with respect to funds appropriatedfor any fiscal year beginning after fiscal year1992 (including financial benefits resultingfrom energy savings performance contractsunder title VIII and utility energy efficiencyrebates) shall, subject to appropriation, re-main available for expenditure by such agen-cy for additional energy efficiency measureswhich may include related employee incen-tive programs, particularly at those facili-ties at which energy savings were achieved.

(B) Agencies shall establish a fund andmaintain strict financial accounting andcontrols for savings realized and expendi-tures made under this subsection. Recordsmaintained pursuant to this subparagraphshall be made available for public inspectionupon request.

‘‘(d) FINANCIAL INCENTIVE PROGRAM FOR FA-CILITY ENERGY MANAGERS.—(1) The Secretaryshall, in consultation with the Task Forceestablished pursuant to section 547, establisha financial bonus program to reward, withfunds made available for such purpose, out-standing Federal facility energy managers inagencies and the United States Postal Serv-ice.

‘‘(2) Not later than June 1, 1993, the Sec-retary shall issue procedures for implement-ing and conducting the award program, in-cluding the criteria to be used in selectingoutstanding energy managers and contribu-tors who have—

‘‘(A) improved energy performance throughincreased energy efficiency;

‘‘(B) implemented proven energy efficiencyand energy conservation techniques, devices,equipment, or procedures;

‘‘(C) developed and implemented trainingprograms for facility energy managers, oper-ators, and maintenance personnel;

‘‘(D) developed and implemented employeeawareness programs;

‘‘(E) succeeded in generating utility incen-tives, shared energy savings contracts, andother federally approved performance basedenergy savings contracts;

‘‘(F) made successful efforts to fulfill com-pliance with energy reduction mandates, in-cluding the provisions of section 543; and

‘‘(G) succeeded in the implementation ofthe guidelines established under section 159.

‘‘(3) There is authorized to be appropriatedto carry out this subsection not more than$250,000 for each of the fiscal years 1993, 1994,and 1995.

(g) REPORTS.—Section 548 of such Act (42U.S.C. 8258) is amended—

(1) in subsection (b)(1), by striking ‘‘includ-ing’’ and all that follows through the semi-colon and inserting the following: ‘‘includ-ing—

‘‘(A) a copy of the list of the exclusionsmade under sections 543(a)(2) and 543(c)(3);and

‘‘(B) a statement detailing the amount offunds awarded to each agency under section546(b), the energy and water conservationmeasures installed with such funds, the pro-jected energy and water savings to be real-ized from installed measures, and, for eachinstalled measure for which the projected en-ergy and water savings reported in the pre-vious year were not realized, the percentageof such projected savings that was not real-ized, the reasons such savings were not real-ized, and proposals for, and projected costsof, achieving such projected savings in thefuture;’’; and

(2) by adding at the end the following newsubsection:

‘‘(c) OTHER REPORT.—The Secretary, inconsultation with the Administrator of Gen-eral Services, shall—

‘‘(1) conduct a study and evaluate legal, in-stitutional, and other constraints to con-necting buildings owned or leased by theFederal Government to district heating anddistrict cooling systems; and

‘‘(2) not later than 18 months after the dateof the enactment of this subsection, trans-mit to the Congress a report containing thefindings and conclusions of such study, in-cluding recommendations for the develop-ment of streamlined processes for the consid-eration of connecting buildings owned orleased by the Federal Government to districtheating and cooling systems.’’.

(h) DEMONSTRATION OF NEW TECHNOLOGY;SURVEY OF ENERGY SAVING POTENTIAL.—SuchAct is amended—

(1) by redesignating section 549 as section551; and

(2) by inserting the following new sectionsafter section 548:‘‘SEC. 549. DEMONSTRATION OF NEW TECH-

NOLOGY.‘‘(a) DEMONSTRATION PROGRAM.—Not later

than January 1, 1994, the Secretary, in co-operation with the Administrator of GeneralServices, shall establish a demonstrationprogram to install, in federally owned facili-ties or federally assisted housing, energyconservation measures for which the Sec-retary has determined that such installationwould accelerate commercial viability. Inthose cases where technologies are deter-mined to be equivalent, priority shall begiven to those technologies that have re-ceived or are receiving Federal financial as-sistance.

‘‘(b) SELECTION CRITERIA.—In addition tothe determination under subsection (a), theSecretary shall select, in cooperation withthe Administrator of General Services, pro-posals to be funded under this section on thebasis of—

‘‘(1) cost-effectiveness;‘‘(2) technical feasibility and system reli-

ability in a working environment;‘‘(3) lack of market penetration in the Fed-

eral sector;‘‘(4) the potential needs of the proposing

Federal agency for the technology, projectedover 5 to 10 years;

‘‘(5) the potential Federal sector market,projected over 5 to 10 years;

‘‘(6) energy efficiency; and

‘‘(7) other environmental benefits, includ-ing the projected reduction of greenhousegas emissions and indoor air pollution.

‘‘(c) PROPOSALS.—Federal agencies maysubmit to the Secretary, for each fiscal year,proposals for projects to be funded by theSecretary under this section. Each such pro-posal shall include—

‘‘(1) a description of the proposed projectemphasizing the innovative use of tech-nology in the Federal sector;

‘‘(2) a description of the technical reliabil-ity and cost-effectiveness data expected tobe acquired;

‘‘(3) an identification of the potential needsof the Federal agency for the technology;

‘‘(4) a commitment to adopt the tech-nology, if the project establishes its tech-nical reliability and life cycle cost-effective-ness, to supply at least 10 percent of the Fed-eral agency’s potential needs identifiedunder paragraph (3);

‘‘(5) schedules and milestones for installingadditional units; and

‘‘(6) a technology transfer plan to publicizethe results of the project.

‘‘(d) PARTICIPATION BY GSA.—The Sec-retary may only select a project for fundingunder this section which is proposed to becarried out in a building under the jurisdic-tion of the General Services Administrationif the project will be carried out by the Ad-ministrator of General Services. If suchproject involves a total expenditure in excessof $1,600,000, no appropriation shall be madefor such project unless such project has beenapproved by a resolution adopted by theCommittee on Public Works and Transpor-tation of the House of Representatives andthe Committee on Environment and PublicWorks of the Senate.

‘‘(e) STUDY.—The Secretary shall conduct astudy to evaluate the potential use of thepurchasing power of the Federal Governmentto promote the development and commer-cialization of energy efficient products. Thestudy shall identify products for which thereis a high potential for Federal purchasingpower to substantially promote their devel-opment and commercialization, and shall in-clude a plan to develop such potential. Thestudy shall be conducted in consultationwith utilities, manufacturers, and appro-priate nonprofit organizations concernedwith energy efficiency. The Secretary shallreport to the Congress on the results of thestudy not later than two years after the dateof the enactment of this Act.

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$5,000,000 for each of the fiscal years 1993,1994, and 1995.‘‘SEC. 550. SURVEY OF ENERGY SAVING POTEN-

TIAL.‘‘(a) IN GENERAL.—The Secretary shall, in

consultation with the Interagency EnergyManagement Task Force established undersection 547, carry out an energy survey forthe purposes of—

‘‘(1) determining the maximum potentialcost effective energy savings that may beachieved in a representative sample of build-ings owned or leased by the Federal Govern-ment in different areas of the country;

‘‘(2) making recommendations for cost ef-fective energy efficiency and renewable en-ergy improvements in those buildings and inother similar Federal buildings; and

‘‘(3) identifying barriers which may pre-vent an agency’s ability to comply with sec-tion 543 and other energy management goals.

‘‘(b) IMPLEMENTATION.—(1) The Secretaryshall transmit to the Committee on Energyand Natural Resources and the Committeeon Governmental Affairs of the Senate andthe Committee on Energy and Commerce,the Committee on Government Operations,

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OCTOBER 5T121.25and the Committee on Public Works andTransportation of the House of Representa-tives, within 180 days after the date of theenactment of the Energy Policy Act of 1992,a plan for implementing this section.

‘‘(2) The Secretary shall designate build-ings to be surveyed in the project so as to ob-tain a sample of the buildings of the typesand in the climates that is representative ofbuildings owned or leased by Federal agen-cies in the United States that consume themajor portion of the energy consumed inFederal buildings. Such sample shall include,where appropriate, the following types ofFederal facility space:

‘‘(A) Housing.‘‘(B) Storage.‘‘(C) Office.‘‘(D) Services.‘‘(E) Schools.‘‘(F) Research and Development.‘‘(G) Industrial.‘‘(H) Prisons.‘‘(I) Hospitals.‘‘(3) For purposes of this section, an im-

provement shall be considered cost effectiveif the cost of the energy saved or displacedby the improvement exceeds the cost of theimprovement over the remaining life of aFederal building or the remaining term of alease of a building leased by the Federal Gov-ernment as determined by the life cycle cost-ing methodology developed under section544.

‘‘(c) PERSONNEL.—(1) In carrying out thissection, the Secretary shall utilize personnelwho are—

‘‘(A) employees of the Department of En-ergy; or

‘‘(B) selected by the agencies utilizing thebuildings which are being surveyed underthis section.

‘‘(2) Such personnel shall be detailed forthe purpose of carrying out this sectionwithout any reduction of salary or benefits.

‘‘(d) REPORT.—As soon as practicable afterthe completion of the project carried outunder this section, the Secretary shall trans-mit a report of the findings and conclusionsof the project to the Committee on Energyand Natural Resources and the Committeeon Governmental Affairs of the Senate, theCommittee on Energy and Commerce, theCommittee on Government Operations, andthe Committee on Public Works and Trans-portation of the House of Representatives,and the agencies who own the buildings in-volved in such project. Such report shall in-clude an analysis of the probability of eachagency achieving the 20 percent reductiongoal established under section 543(a) of theNational Energy Conservation Policy Act (42U.S.C. 8253(a)).’’.

(i) TECHNICAL AMENDMENTS.—(1) Section548 of such Act (42 U.S.C. 8258) is amended—

(A) in subsection (a)(2), by striking‘‘546(b)’’ and inserting in lieu thereof‘‘546(a)(2)’’; and

(B) in subsection (b), in the material pre-ceding paragraph (1), by striking ‘‘annually,’’and insert the following: ‘‘, not later thanApril 2 of each year,’’.

(2) The table of contents of such Act isamended by striking the item for section 549and inserting in lieu thereof the followingnew items:‘‘Sec. 549. Demonstration of new technology.‘‘Sec. 550. Survey of energy saving potential.‘‘Sec. 551. Definitions.’’.

(3) Section 3 of the Federal Energy Man-agement Improvement Act of 1988 (42 U.S.C.8253 note) is hereby repealed.SEC. 153. GENERAL SERVICES ADMINISTRATION

FEDERAL BUILDINGS FUND.Section 210(f) of the Federal Property and

Administrative Services Act of 1949 (40U.S.C. 490(f)), is amended—

(1) in paragraph (1), by inserting ‘‘(to beknown as the Federal Buildings Fund)’’ after‘‘a fund’’; and

(2) by adding at the end the following newparagraphs:

‘‘(7)(A) The Administrator is authorized toreceive amounts from rebates or other cashincentives related to energy savings andshall deposit such amounts in the FederalBuildings Fund for use as provided in sub-paragraph (D).

‘‘(B) The Administrator may accept, froma utility, goods or services which enhancethe energy efficiency of Federal facilities.

‘‘(C) In the administration of any realproperty for which the Administrator leasesand pays utility costs, the Administratormay assign all or a portion of energy rebatesto the lessor to underwrite the costs in-curred in undertaking energy efficiency im-provements in such real property if the pay-back period for such improvement is at least2 years less than the remainder of the termof the lease.

‘‘(D) The Administrator may, in additionto amounts appropriated for such purposesand without regard to paragraph (2), obligatefor energy management improvement pro-grams—

‘‘(i) amounts received and deposited in theFederal Buildings fund under subparagraph(A);

‘‘(ii) goods and services received under sub-paragraph (B); and

‘‘(iii) amounts the Administrator deter-mines are not needed for other authorizedprojects and are otherwise available to im-plement energy efficiency programs.

‘‘(8)(A) The Administrator is authorized toreceive amounts from the sale of recycledmaterials and shall deposit such amounts inthe Federal Buildings fund for use as pro-vided in subparagraph (B).

‘‘(B) The Administrator may, in additionto amounts appropriated for such purposesand without regard to paragraph (2), obligateamounts received and deposited in the Fed-eral Buildings Fund under subparagraph (A)for programs which—

‘‘(i) promote further source reduction andrecycling programs; and

‘‘(ii) encourage employees to participate inrecycling programs by providing funding forchild care.’’.SEC. 154. REPORT BY GENERAL SERVICES ADMIN-

ISTRATION.Not later than one year after the date of

the enactment of this Act, and annuallythereafter, the Administrator of GeneralServices shall report to the Committee onGovernmental Affairs and the Committee onEnergy and Natural Resources of the Senateand the Committee on Energy and Com-merce, the Committee on Government Oper-ations, and the Committee on Public Worksand Transportation of the House of Rep-resentatives on the activities of the GeneralServices Administration conducted pursuantto this subtitle.SEC. 155. ENERGY SAVINGS PERFORMANCE CON-

TRACTS.(a) IN GENERAL.—Section 801 of the Na-

tional Energy Conservation Policy Act (42U.S.C. 8287) is amended—

(1) by striking ‘‘The head’’ and insertingthe following:

‘‘(a) IN GENERAL.—(1) The head’’; and(2) by inserting at the end the following:‘‘(2)(A) Contracts under this title shall be

energy savings performance contracts andshall require an annual energy audit andspecify the terms and conditions of any gov-ernment payments and performance guaran-tees. Any such performance guarantee shallprovide that the contractor is responsible formaintenance and repair services for any en-ergy related equipment, including computersoftware systems.

‘‘(B) Aggregate annual payments by anagency to both utilities and energy savingsperformance contractors, under an energy

savings performance contract, may not ex-ceed the amount that the agency would havepaid for utilities without an energy savingsperformance contract (as estimated throughthe procedures developed pursuant to thissection) during contract years. The contractshall provide for a guarantee of savings tothe agency, and shall establish paymentschedules reflecting such guarantee, takinginto account any capital costs under the con-tract.

‘‘(C) Federal agencies may incur obliga-tions pursuant to such contracts to financeenergy conservation measures provided guar-anteed savings exceed the debt service re-quirements.

‘‘(D) A federal agency may enter into amultiyear contract under this title for a pe-riod not to exceed 25 years, without fundingof cancellation charges before cancellation,if—

‘‘(i) such contract was awarded in a com-petitive manner pursuant to subsection(b)(2), using procedures and methods estab-lished under this title;

‘‘(ii) funds are available and adequate forpayment of the costs of such contract for thefirst fiscal year;

‘‘(iii) 30 days before the award of any suchcontract that contains a clause setting fortha cancellation ceiling in excess of $750,000,the head of such agency gives written notifi-cation of such proposed contract and of theproposed cancellation ceiling for such con-tract to the appropriate authorizing and ap-propriating committees of the Congress; and

‘‘(iv) such contract is governed by part 17.1of the Federal Acquisition Regulation pro-mulgated under section 25 of the Office ofFederal Procurement Policy Act (41 U.S.C.421) or the applicable rules promulgatedunder this title.

‘‘(b) IMPLEMENTATION.—(1)(A) The Sec-retary, with the concurrence of the FederalAcquisition Regulatory Council establishedunder section 25(a) of the Office of FederalProcurement Policy Act, not later than 180days after the date of the enactment of theEnergy Policy Act of 1992, shall, by rule, es-tablish appropriate procedures and methodsfor use by Federal agencies to select, mon-itor, and terminate contracts with energyservice contractors in accordance with lawsgoverning Federal procurement that willachieve the intent of this section in a cost-effective manner. In developing such proce-dures and methods, the Secretary, with theconcurrence of the Federal Acquisition Reg-ulatory Council, shall determine which ex-isting regulations are inconsistent with theintent of this section and shall formulatesubstitute regulations consistent with lawsgoverning Federal procurement.

‘‘(B) The procedures and methods estab-lished pursuant to subparagraph (A) shall bethe procedures and contracting methods forselection, by an agency, of a contractor toprovide energy savings performance services.Such procedures and methods shall providefor the calculation of energy savings basedon sound engineering and financial practices.

‘‘(2) The procedures and methods estab-lished pursuant to paragraph (1)(A) shall—

‘‘(A) allow the Secretary to—‘‘(i) request statements of qualifications,

which shall, at a minimum, include prior ex-perience and capabilities of contractors toperform the proposed types of energy savingsservices and financial and performance infor-mation, from firms engaged in providing en-ergy savings services; and

‘‘(ii) from the statements received, des-ignate and prepare a list, with an update atleast annually, of those firms that are quali-fied to provide energy savings services;

‘‘(B) require each agency to use the listprepared by the Secretary pursuant to sub-paragraph (A)(ii) unless the agency elects todevelop an agency list of firms qualified to


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1992 T121.25provide energy savings performance servicesusing the same selection procedures andmethods as are required of the Secretary inpreparing such lists; and

‘‘(C) allow the head of each agency to—‘‘(i) select firms from the list prepared pur-

suant to subparagraph (A)(ii) or the list pre-pared by the agency pursuant to subpara-graph (B) to conduct discussions concerninga particular proposed energy savings project,including requesting a technical and priceproposal from such selected firms for suchproject;

‘‘(ii) select from such firms the most quali-fied firm to provide energy savings servicesbased on technical and price proposals andany other relevant information;

‘‘(iii) permit receipt of unsolicited propos-als for energy savings performance contract-ing services from a firm that such agencyhas determined is qualified to provide suchservices under the procedures establishedpursuant to paragraph (1)(A), and requireagency facility managers to place a notice inthe Commerce Business Daily announcingthey have received such a proposal and in-vite other similarly qualified firms to sub-mit competing proposals; and

‘‘(iv) enter into an energy savings perform-ance contract with a firm qualified underclause (iii), consistent with the proceduresand methods established pursuant to para-graph (1)(A).

‘‘(3) A firm not designated as qualified toprovide energy savings services under para-graph (2)(A)(i) or paragraph (2)(B) may re-quest a review of such decision to be con-ducted in accordance with procedures to bedeveloped by the board of contract appeals ofthe General Services Administration. Proce-dures developed by the board of contract ap-peals under this paragraph shall be substan-tially equivalent to procedures establishedunder section 111(f) of the Federal Propertyand Administrative Services Act of 1949 (40U.S.C. 759(f)).

‘‘(c) SUNSET AND REPORTING REQUIRE-MENTS.—(1) The authority to enter into newcontracts under this section shall cease to beeffective five years after the date proceduresand methods are established under sub-section (b).

‘‘(2) Beginning one year after the date pro-cedures and methods are established undersubsection (b), and annually thereafter, for aperiod of five years after such date, theComptroller General of the United Statesshall report on the implementation of thissection. Such reports shall include, but notbe limited to, an assessment of the followingissues:

‘‘(A) The quality of the energy audits con-ducted for the agencies.

‘‘(B) The government’s ability to maximizeenergy savings.

‘‘(C) The total energy cost savings accruedby the agencies that have entered into suchcontracts.

‘‘(D) The total costs associated with enter-ing into and performing such contracts.

‘‘(E) A comparison of the total costs in-curred by agencies under such contracts andthe total costs incurred under similar con-tracts performed in the private sector.

‘‘(F) The number of firms selected as quali-fied firms under this section and their re-spective shares of awarded contracts.

‘‘(G) The number of firms engaged in simi-lar activity in the private sector and theirrespective market shares.

‘‘(H) The number of applicant firms not se-lected as qualified firms under this sectionand the reason for their nonselection.

‘‘(I) The frequency with which agencieshave utilized the services of government labsto perform any of the functions specified inthis section.

‘‘(J) With the respect to the final reportsubmitted pursuant to this paragraph, an as-

sessment of whether the contracting proce-dures developed pursuant to this section andutilized by agencies have been effective andwhether continued use of such procedures, asopposed to the procedures provided by exist-ing public contract law, is necessary for im-plementation of successful energy savingsperformance contracts.’’.

(b) DEFINITION.—Section 804 of such Act (42U.S.C. 8287c) is amended—

(1) in the material preceding paragraph (1),by striking ‘‘title—’’ and inserting ‘‘title,the following definitions apply:’’;

(2) in paragraph (1), by striking ‘‘the’’ andinserting ‘‘The’’ and by striking ‘‘, and’’ andinserting a period;

(3) in paragraph (2), by striking ‘‘the term’’and inserting ‘‘The term’’; and

(4) by adding at the end the following:‘‘(3) The terms ‘energy savings contract’

and ‘energy savings performance contract’mean a contract which provides for the per-formance of services for the design, acquisi-tion, installation, testing, operation, and,where appropriate, maintenance and repair,of an identified energy conservation measureor series of measures at one or more loca-tions. Such contracts—

‘‘(A) may provide for appropriate softwarelicensing agreements; and

‘‘(B) shall, with respect to an agency facil-ity that is a public building as such term isdefined in section 13(1) of the Public Build-ings Act of 1959 (40 U.S.C. 612(1)), be in com-pliance with the prospectus requirementsand procedures of section 7 of the PublicBuildings Act of 1959 (40 U.S.C. 606).

‘‘(4) The term ‘‘energy conservation meas-ures’’ has the meaning given such term insection 551(4).’’.

(c) TECHNICAL AND CONFORMING AMEND-MENTS.—(1) The title heading for title VIII ofsuch Act is amended to read as follows:

‘‘TITLE VIII—ENERGY SAVINGSPERFORMANCE CONTRACTS’’.

(2) The table of contents of such Act isamended by striking the item relating totitle VIII and inserting the following: ‘‘EN-ERGY SAVINGS PERFORMANCE CONTRACTS’’.SEC. 156. INTERGOVERNMENTAL ENERGY MAN-

AGEMENT PLANNING AND COORDI-NATION.

(a) CONFERENCE WORKSHOPS.—The Admin-istrator of General Services, in consultationwith the Secretary and the Task Force, shallhold regular, biennial conference workshopsin each of the 10 standard Federal regions onenergy management, conservation, effi-ciency, and planning strategy. The Adminis-trator shall work and consult with the De-partment of Energy and other Federal agen-cies to plan for particular regional con-ferences. The Administrator shall invite De-partment of Energy, State, local, tribal, andcounty public officials who have responsibil-ities for energy management or may have aninterest in such conferences and shall seekthe input of, and be responsive to, the viewsof such officials in the planning and organi-zation of such workshops.

(b) FOCUS OF WORKSHOPS.—Such workshopsand conferences shall focus on the following(but may include other topics):

(1) Developing strategies among Federal,State, tribal, and local governments to co-ordinate energy management policies and tomaximize available intergovernmental en-ergy management resources within the re-gion regarding the use of governmental fa-cilities and buildings.

(2) The design, construction, maintenance,and retrofitting of governmental facilities toincorporate energy efficient techniques.

(3) Procurement and use of energy efficientproducts.

(4) Dissemination of energy information oninnovative programs, technologies, andmethods which have proven successful ingovernment.

(5) Technical assistance to design and in-corporate effective energy managementstrategies.

(c) ESTABLISHMENT OF WORKSHOP TIME-TABLE.—As a part of the first report to besubmitted pursuant to section 154, the Ad-ministrator shall set forth the schedule forthe regional energy management workshopsto be conducted under this section. Not lessthan five such workshops shall be held bySeptember 30, 1993, and at least one suchworkshop shall be held in each of the 10 Fed-eral regions every two years beginning onSeptember 30, 1993.SEC. 157. FEDERAL AGENCY ENERGY MANAGE-

MENT TRAINING.(a) ENERGY MANAGEMENT TRAINING.—(1)

Each executive department described undersection 101 of title 5, United States Code, theEnvironmental Protection Agency, the Na-tional Aeronautics and Space Administra-tion, the General Services Administration,and the United States Postal Service shallestablish and maintain a program to ensurethat facility energy managers are trained en-ergy managers. Such programs shall be man-aged—

(A) by the department or agency represent-ative on the Task Force; or

(B) if a department or agency is not rep-resented on the Task Force, by the designeeof the head of such department or agency.

(2) Departments and agencies described inparagraph (1) shall encourage appropriateemployees to participate in energy managertraining courses. Employees may enroll incourses of study in the areas described insection 151(3) including, but not limited to,courses offered by—

(A) private or public educational institu-tions;

(B) Federal agencies; or(C) professional associations.(b) REPORT TO TASK FORCE.—(1) Each de-

partment and agency described in subsection(a)(1) shall, not later than 60 days followingthe date of the enactment of this Act, reportto the Task Force the following information:

(A) Those individuals employed by such de-partment or agency on the date of the enact-ment of this Act who qualify as trained en-ergy managers.

(B) The General Schedule (GS) or gradelevel at which each of the individuals de-scribed in subparagraph (A) is employed.

(C) The facility or facilities for which suchindividuals are responsible or otherwise sta-tioned.

(2) The Secretary shall provide a summaryof the reports described in paragraph (1) tothe Congress as part of the first report sub-mitted under section 548 of the National En-ergy Conservation Policy Act (42 U.S.C. 8258)after the date of the enactment of this Act.

(c) REQUIREMENTS AT FEDERAL FACILI-TIES.—(1) Not later than one year after thedate of the enactment of this Act, the de-partments and agencies described under sub-section (a)(1) shall upgrade their energymanagement capabilities by—

(A) designating facility energy supervisors;(B) encouraging facility energy supervisors

to become trained energy managers; and(C) increasing the overall number of

trained energy managers within such depart-ment or agency to a sufficient level to en-sure effective implementation of this Act.

(2) Departments and agencies described insubsection (a)(1) may hire trained energymanagers to be facility energy supervisors.Trained energy managers, including thosewho are facility supervisors as well as othertrained personnel, shall focus their efforts onimproving energy efficiency in the followingfacilities—

(A) department or agency facilities identi-fied as most costly to operate or most energyinefficient; or

JOURNAL OF THE

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OCTOBER 5T121.25(B) other facilities identified by the de-

partment or agency head as having signifi-cant energy savings potential.

(d) ANNUAL REPORT TO SECRETARY ANDCONGRESS.—Each department and agencylisted in subsection (a)(1) shall report to theSecretary on the status and implementationof the requirements of this section. The Sec-retary shall include a summary of each suchreport in the annual report to Congress asrequired under section 548(b) of the NationalEnergy Conservation Policy Act (42 U.S.C.8258).SEC. 158. ENERGY AUDIT TEAMS.

(a) ESTABLISHMENT.—The Secretary shallassemble from existing personnel with ap-propriate expertise, and with particular uti-lization of the national laboratories, andmake available to all Federal agencies, oneor more energy audit teams which shall beequipped with instruments and other ad-vanced equipment needed to perform energyaudits of Federal facilities.

(b) MONITORING PROGRAMS.—The Secretaryshall also assist in establishing, at each sitethat has utilized an energy audit team, aprogram for monitoring the implementationof energy efficiency improvements basedupon energy audit team recommendations,and for recording the operating history ofsuch improvements.SEC. 159. FEDERAL ENERGY COST ACCOUNTING

AND MANAGEMENT.(a) GUIDELINES.—Not later than 120 days

after the date of the enactment of this Act,the Director of the Office of Managementand Budget, in cooperation with the Sec-retary, the Administrator of General Serv-ices, and the Secretary of Defense, shall es-tablish guidelines to be employed by eachFederal agency to assess accurate energyconsumption for all buildings or facilitieswhich the agency owns, operates, manages orleases, where the Government pays utilitiesseparate from the lease and the Governmentoperates the leased space. Such guidelinesare to be used in reports required under sec-tion 548 of the National Energy ConservationPolicy Act (42 U.S.C. 8258). Each agency shallimplement such guidelines no later than 120days after their establishment. Each facilityenergy manager shall maintain energy con-sumption and energy cost records for reviewby the Inspector General, the Congress, andthe general public.

(b) CONTENTS OF GUIDELINES.—Such guide-lines shall include the establishment of amonitoring system to determine—

(1) which facilities are the most costly tooperate when measured on an energy con-sumption per square foot basis or other rel-evant analytical basis;

(2) unusual or abnormal changes in energyconsumption; and

(3) the accuracy of utility charges for elec-tric and gas consumption.

(c) FEDERALLY LEASED SPACE ENERGY RE-PORTING REQUIREMENT.—The Administratorof General Services shall include, in each re-port submitted under section 154, the esti-mated energy cost of leased buildings orspace in which the Federal Government doesnot directly pay the utility bills.SEC. 160. INSPECTOR GENERAL REVIEW AND

AGENCY ACCOUNTABILITY.(a) AUDIT SURVEY.—Not later than 120 days

after the date of the enactment of this Act,each Inspector General created to conductand supervise audits and investigations re-lating to the programs and operations of theestablishments listed in section 11(2) of theInspector General Act of 1978 (5 U.S.C. App.),and the Chief Postal Inspector of the UnitedStates Postal Service, in accordance withsection 8E(f)(1) as established by section8E(a)(2) of the Inspector General Act Amend-ments of 1988 (Public Law 100–504) shall—

(1) identify agency compliance activities tomeet the requirements of section 543 of the

National Energy Conservation Policy Act (42U.S.C. 8253) and any other matters relevantto implementing the goals of such Act; and

(2) determine if the agency has the internalaccounting mechanisms necessary to assessthe accuracy and reliability of energy con-sumption and energy cost figures requiredunder such section.

(b) PRESIDENTS COUNCIL ON INTEGRITY ANDEFFICIENCY REPORT TO CONGRESS.—Not laterthan 150 days after the date of the enactmentof this Act, the President’s Council on Integ-rity and Efficiency shall submit a report tothe Committee on Energy and Natural Re-sources and the Committee on GovernmentalAffairs of the Senate, the Committee on En-ergy and Commerce, the Committee on Gov-ernment Operations, and the Committee onPublic Works and Transportation of theHouse of Representatives, on the review con-ducted by the Inspector General of eachagency under this section.

(c) INSPECTOR GENERAL REVIEW.—Each In-spector General established under section 2of the Inspector General Act of 1978 (5 U.S.C.App.) is encouraged to conduct periodic re-views of agency compliance with part 3 oftitle V of the National Energy ConservationPolicy Act, the provisions of this subtitle,and other laws relating to energy consump-tion. Such reviews shall not be inconsistentwith the performance of the required dutiesof the Inspector General’s office.SEC. 161. PROCUREMENT AND IDENTIFICATION

OF ENERGY EFFICIENT PRODUCTS.(a) PROCUREMENT.—The Administrator of

General Services, the Secretary of Defense,and the Director of the Defense LogisticsAgency, each shall undertake a program toinclude energy efficient products in carryingout their procurement and supply functions.

(b) IDENTIFICATION PROGRAM.—The Admin-istrator of General Services, the Secretary ofDefense, and the Director of the Defense Lo-gistics Agency, in consultation with the Sec-retary of Energy, each shall implement, inconjunction with carrying out their procure-ment and supply functions, a program toidentify and designate those energy efficientproducts that offer significant potential sav-ings, using, to the extent practicable, the lifecycle cost methods and procedures developedunder section 544 of the National EnergyConservation Policy Act (42 U.S.C. 8254). TheSecretary of Energy shall, to the extent nec-essary to carry out this section and afterconsultation with the aforementioned agen-cy heads, provide estimates of the degree ofrelative energy efficiency of products.

(c) GUIDELINES.—The Administrator forFederal Procurement Policy, in consultationwith the Administrator of General Services,the Secretary of Energy, the Secretary ofDefense, and the Director of the Defense Lo-gistics Agency, shall issue guidelines to en-courage the acquisition and use by all Fed-eral agencies of products identified pursuantto this section. The Secretary of Defense andthe Director of the Defense Logistics Agencyshall consider, and place emphasis on, theacquisition of such products as part of theAgency’s ongoing review of military speci-fications.

(d) REPORT TO CONGRESS.—Not later thanDecember 31 of 1993 and of each year there-after, the Secretary of Energy, in consulta-tion with the Administrator for Federal Pro-curement Policy, the Administrator of Gen-eral Services, the Secretary of Defense, andthe Director of the Defense Logistics Agen-cy, shall report on the progress, status, ac-tivities, and results of the programs undersubsections (a), (b), and (c). The report shallinclude—

(1) the types and functions of each productidentified under subsection (b), and effortsundertaken by the Administrator of GeneralServices, the Secretary of Defense, and the

Director of the Defense Logistics Agency toencourage the acquisition and use of suchproducts;

(2) the actions taken by the Administratorof General Services, the Secretary of De-fense, and the Director of the Defense Logis-tics Agency to identify products under sub-section (b), the barriers which inhibit imple-mentation of identification of such products,and recommendations for legislative action,if necessary;

(3) progress on the development andissuance of guidelines under subsection (c);

(4) an indication of whether energy costsavings technologies identified by the Ad-vanced Building Technology Council, undersection 809(h) of the National Housing Act(12 U.S.C. 1701j–2), have been used in theidentification of products under subsection(b);

(5) an estimate of the potential cost sav-ings to the Federal Government from acquir-ing products identified under subsection (b)with respect to which energy is a significantcomponent of life cycle cost, based on thequantities of such products that could be uti-lized throughout the Government; and

(6) the actual quantities acquired of prod-ucts described in paragraph (5).

SEC. 162. FEDERAL ENERGY EFFICIENCY FUND-ING STUDY.

(a) STUDY.—The Secretary shall, in con-sultation with the Secretary of the Treas-ury, the Director of the Office of Manage-ment and Budget, the Administrator of Gen-eral Services, and such other individuals andorganizations as the Secretary deems appro-priate, conduct a detailed study of optionsfor the financing of energy and water con-servation measures required under part 3 oftitle V of the National Energy ConservationPolicy Act (42 U.S.C. 8251 et seq.) and all ap-plicable Executive orders. Such study shall,taking into account the unique characteris-tics of Federal agencies, consider and ana-lyze—

(1) the Federal financial investment nec-essary to comply with such requirements;

(2) the use of revolving funds and otherfunding mechanisms which offer stable, long-term financing of energy and water con-servation measures; and

(3) the means for capitalizing such funds.

(b) REPORT TO CONGRESS.—Not later than180 days after the date of the enactment ofthis Act, the Secretary shall submit to theCongress a report containing the results ofthe study required under subsection (a).

SEC. 163. UNITED STATES POSTAL SERVICE EN-ERGY REGULATIONS.

(a) IN GENERAL.—The Postmaster Generalshall issue regulations to ensure the reliableand accurate accounting of energy consump-tion costs for all buildings or facilities whichit owns, leases, operates, or manages. Suchregulations shall—

(1) establish a monitoring system to deter-mine which facilities are the most costly tooperate on an energy consumption persquare foot basis or other relevant analyticalbasis;

(2) identify unusual or abnormal changesin energy consumption; and

(3) check the accuracy of utility chargesfor electricity and gas consumption.

(b) IDENTIFICATION OF ENERGY EFFICIENCYPRODUCTS.—The Postmaster General shallactively undertake a program to identify andprocure energy efficiency products for use inits facilities. In carrying out this subsection,the Postmaster General shall, to the maxi-mum extent practicable, incorporate energyefficient information available on FederalSupply Schedules maintained by the GeneralServices Administration and the Defense Lo-gistics Agency.


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1992 T121.25SEC. 164. UNITED STATES POSTAL SERVICE

BUILDING ENERGY SURVEY AND RE-PORT.

(a) IN GENERAL.—The Postmaster Generalshall conduct an energy survey, as defined insection 551(5) of the National Energy Con-servation Policy Act, for the purposes of—

(1) determining the maximum potentialcost effective energy savings that may beachieved in a representative sample of build-ings owned or leased by the United StatesPostal Service in different areas of the coun-try;

(2) making recommendations for cost effec-tive energy efficiency and renewable energyimprovements in those buildings and inother similar United States Postal Servicebuildings; and

(3) identifying barriers which may preventthe United States Postal Service from com-plying with energy management goals, in-cluding Executive Orders No. 12003 and 12579.

(b) IMPLEMENTATION.—(1) The PostmasterGeneral shall transmit to the Committee onGovernmental Affairs and the Committee onEnergy and Natural Resources of the Senate,and the Committee on Energy and Commerceand the Committee on Post Office and CivilService of the House of Representatives,within 180 days after the date of the enact-ment of this Act, a plan for implementingthis section.

(2) The Postmaster General shall designatebuildings to be surveyed in the project so asto obtain a sample of United States PostalService facilities of the types and in the cli-mates that consume the major portion of theenergy consumed by the United States Post-al Service.

(3) For the purposes of this section, an im-provement shall be considered cost effectiveif the cost of the energy saved or displacedby the improvement exceeds the cost of theimprovement over the remaining life of thefacility or the remaining term of a lease of abuilding leased by the United States PostalService.

(c) REPORT.—As soon as practicable afterthe completion of the project carried outunder this section, the Postmaster Generalshall transmit a report of the findings andconclusions of the survey to the Committeeon Governmental Affairs and the Committeeon Energy and Natural Resources of the Sen-ate, and the Committee on Energy and Com-merce and the Committee on Post Office andCivil Service of the House of Representa-tives.SEC. 165. UNITED STATES POSTAL SERVICE EN-

ERGY MANAGEMENT REPORT.Not later than one year after the date of

the enactment of this Act, and not later thanJanuary 1 of each year thereafter, the Post-master General shall submit a report to theCommittee on Governmental Affairs and theCommittee on Energy and Natural Resourcesof the Senate and the Committee on Energyand Commerce and the Committee on PostOffice and Civil Service of the House of Rep-resentatives on the United States PostalService’s building management program asit relates to energy efficiency. The reportshall include, but not be limited to—

(1) a description of actions taken to reduceenergy consumption;

(2) future plans to reduce energy consump-tion;

(3) an assessment of the success of the en-ergy conservation program;

(4) a statement of energy costs incurred inoperating and maintaining all United StatesPostal Service facilities; and

(5) the status of the energy efficient pro-curement program established under section163.SEC. 166. ENERGY MANAGEMENT REQUIREMENTS

FOR THE UNITED STATES POSTALSERVICE.

(a) ENERGY MANAGEMENT REQUIREMENTSFOR POSTAL FACILITIES.—(1) The Postmaster

General shall, to the maximum extent prac-ticable, ensure that each United States Post-al Service facility meets the energy manage-ment requirements for Federal buildings andagencies specified in section 543 of the Na-tional Energy Conservation Policy Act (42U.S.C. 8253).

(2) The Postmaster General may excludefrom the requirements of such section anyfacility or collection of facilities, and the as-sociated energy consumption and grosssquare footage if the Postmaster Generalfinds that compliance with the requirementsof such section would be impracticable. Afinding of impracticability shall be based onthe energy intensiveness of activities carriedout in such facility or collection of facilities,the type and amount of energy consumed, orthe technical feasibility of making the de-sired changes. The Postmaster General shallidentify and list in the report required undersection 165 the facilities designated by it forsuch exclusion.

(b) IMPLEMENTATION STEPS—In carryingsubsection (a), the Postmaster Generalshall—

(1) not later than 1 year after the date ofthe enactment of this Act, prepare or update,as appropriate, a plan (which may be submit-ted as part of the first report submittedunder section 165)—

(A) describing how this section will be im-plemented;

(B) designating personnel primarily re-sponsible for achieving the requirements ofthis section; and

(C) identifying high priority projects;(2) perform energy surveys of United

States Postal Service facilities as necessaryto achieve the requirements of this section;

(3) install those energy conservation meas-ures that will attain the requirements of thissection in a cost-effective manner as definedin section 544 of the National Energy Con-servation Policy Act (42 U.S.C. 8254); and

(4) ensure that the operation and mainte-nance procedures applied under this sectionare continued.SEC. 167. GOVERNMENT CONTRACT INCENTIVES.

(a) ESTABLISHMENT OF CRITERIA.—Eachagency, in consultation with the Federal Ac-quisition Regulatory Council, shall establishcriteria for the improvement of energy effi-ciency in Federal facilities operated by Fed-eral Government contractors or subcontrac-tors.

(b) PURPOSE OF CRITERIA.—The criteria es-tablished under subsection (a) shall be usedto encourage Federal contractors, and theirsubcontractors, which manage and operatefederally-owned facilities, to adopt and uti-lize energy conservation measures designedto reduce energy costs in Government-ownedand contractor-operated facilities and whichare ultimately borne by the Federal Govern-ment.SEC. 168. ENERGY MANAGEMENT REQUIREMENTS

FOR CONGRESSIONAL BUILDINGS.(a) IN GENERAL.—The Architect of the Cap-

itol (hereafter in this section referred to asthe ‘‘Architect’’) shall undertake a programof analysis and, as necessary, retrofit of theCapitol Building, the Senate Office Build-ings, the House Office Buildings, and theCapitol Grounds, in accordance with sub-section (b).

(b) PROGRAM.—(1) LIGHTING.—(A) IMPLEMENTATION.—(i) IN GENERAL.—Not later than 18 months

after the date of the enactment of this Actand subject to the availability of funds tocarry out this section, the Architect shallbegin implementing a program to replace ineach building described in subsection (a) allinefficient office and general use area fluo-rescent lighting systems with systems thatincorporate the best available design and

technology and that have payback periods of10 years or less, as determined by usingmethods and procedures established undersection 544(a) of the National Energy andConservation Policy Act (42 U.S.C. 8254(a)).

(ii) REPLACEMENT OF INCANDESCENT LIGHT-ING.—Whenever practicable in office and gen-eral use areas, the Architect shall replace in-candescent lighting with efficient fluores-cent lighting.

(B) COMPLETION.—Subject to the availabil-ity of funds to carry out this section, theprogram described in subparagraph (A) shallbe completed not later than 5 years after thedate of the enactment of this Act.

(2) EVALUATION AND REPORT.—(A) IN GENERAL.—Not later than 6 months

after the date of the enactment of this Act,the Architect shall submit to the Speaker ofthe House of Representatives and the Presi-dent pro tempore of the Senate a report eval-uating potential energy conservation meas-ures for each building described in sub-section (a) in the areas of heating, ventila-tion, air conditioning equipment, insulation,windows, domestic hot water, food serviceequipment, and automatic control equip-ment.

(B) COSTS.—The report submitted undersubparagraph (A) shall detail the projectedinstallation cost, energy and cost savings,and payback period of each energy conserva-tion measure, as determined by using meth-ods and procedures established under section544(a) of the National Energy ConservationPolicy Act (42 U.S.C. 8254(a)).

(3) REVIEW AND APPROVAL OF ENERGY CON-SERVATION MEASURES.—The Committee onPublic Works and Transportation of theHouse of Representatives and the Committeeon Rules and Administration of the Senateshall review the energy conservation meas-ures identified in accordance with paragraph(2) and shall approve any such measure be-fore it may be implemented.

(4) UTILITY INCENTIVE PROGRAMS.—In carry-ing out this section, the Architect is author-ized and encouraged to—

(A) accept any rebate or other financial in-centive offered through a program for energyconservation or demand management of elec-tricity, water, or gas that—

(i) is conducted by an electric, natural gas,or water utility;

(ii) is generally available to customers ofthe utility; and

(iii) provides for the adoption of energy ef-ficiency technologies or practices that theArchitect determines are cost-effective forthe buildings described in subsection (a); and

(B) enter into negotiations with electricand natural gas utilities to design a specialdemand management and conservation in-centive program to address the unique needsof the buildings described in subsection (a).

(5) USE OF SAVINGS.—The Architect shalluse an amount equal to the rebate or othersavings from the financial incentive pro-grams under paragraph (4)(A), without addi-tional authorization or appropriation, forthe implementation of additional energy andwater conservation measures in the build-ings under the jurisdiction of the Architect.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as are necessary to carry out this sec-tion.

Subtitle G—Miscellaneous

SEC. 171. ENERGY INFORMATION.

(a) ENERGY INFORMATION ADMINISTRA-TION.—Section 205(i)(1) of the Department ofEnergy Organization Act (42 U.S.C. 7135(i)(1))is amended—

(1) in the matter preceding subparagraph(A), by striking ‘‘on at least a triennialbasis’’ and inserting in lieu thereof the fol-lowing: ‘‘at least once every two years’’; and

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OCTOBER 5T121.25(2) by amending subparagraph (D) to read

as follows:‘‘(D) use of nonpurchased sources of en-

ergy, such as solar, wind, biomass, geo-thermal, waste by-products, and cogenera-tion.’’.

(b) RENEWABLE ENERGY INFORMATION.—Sec-tion 205 of the Department of Energy Organi-zation Act (42 U.S.C. 7135) is amended by add-ing at the end the following new subsections:

‘‘(j)(1) The Administrator shall annuallycollect and publish the results of a survey ofelectricity production from domestic renew-able energy resources, including productionin kilowatt hours, total installed capacity,capacity factor, and any other measure ofproduction efficiency. Such results shall dis-tinguish between various renewable energyresources.

‘‘(2) In carrying out this subsection, theAdministrator shall—

‘‘(A) utilize, to the maximum extent prac-ticable and consistent with the faithful exe-cution of his responsibilities under this Act,reliable statistical sampling techniques; and

‘‘(B) otherwise take into account the re-porting burdens of energy information bysmall businesses.

‘‘(3) As used in this subsection, the term‘renewable energy resources’ includes energyderived from solar thermal, geothermal, bio-mass, wind, and photovoltaic resources.

‘‘(k) Pursuant to section 52(a) of the Fed-eral Energy Administration Act of 1974 (15U.S.C. 790a(a)), the Administrator shall—

‘‘(1) conduct surveys of residential andcommercial energy use at least once every 3years, and make such information availableto the public;

‘‘(2) when surveying electric utilities, col-lect information on demand-side manage-ment programs conducted by such utilities,including information regarding the types ofdemand-side management programs beingoperated, the quantity of measures installed,expenditures on demand-side managementprograms, estimates of energy savings re-sulting from such programs, and whether thesavings estimates were verified; and

‘‘(3) in carrying out this subsection, takeinto account reporting burdens and the pro-tection of proprietary information as re-quired by law.

‘‘(l) In order to improve the ability toevaluate the effectiveness of the Nation’s en-ergy efficiency policies and programs, theAdministrator shall, in carrying out the datacollection provisions of subsections (i) and(k), consider—

‘‘(1) expanding the survey instruments toinclude questions regarding participation ingovernment and utility conservation pro-grams;

‘‘(2) expanding fuel-use surveys in order toprovide greater detail on energy use by usersubgroups; and

‘‘(3) expanding the scope of data collectionon energy efficiency and load-managementprograms, including the effects of buildingconstruction practices such as those de-signed to obtain peak load shifting.’’.SEC. 172. DISTRICT HEATING AND COOLING PRO-

GRAMS.(a) IN GENERAL.—The Secretary, in con-

sultation with appropriate industry organi-zations, shall conduct a study to—

(1) assess existing district heating andcooling technologies to determine cost-effec-tiveness, technical performance, energy effi-ciency, and environmental impacts as com-pared to alternative methods for heating andcooling buildings;

(2) estimate the economic value of benefitsthat may result from implementation of dis-trict heating and cooling systems but thatare not currently recognized, such as reducedemissions of air pollutants, local economicdevelopment, and energy security;

(3) evaluate the cost-effectiveness, includ-ing the economic value referred to in para-graph (2), of cogenerated district heating andcooling technologies compared to other al-ternatives for generating or conserving elec-tricity; and

(4) assess and make recommendations forreducing institutional and other constraintson the implementation of district heatingand cooling systems.

(b) REPORT.—Not later than 2 years afterthe date of the enactment of this Act, theSecretary shall transmit to the Congress areport containing the findings, conclusionsand recommendations, if any, of the Sec-retary for carrying out Federal, State, andlocal programs as a result of the study con-ducted under subsection (a).SEC. 173. STUDY AND REPORT ON VIBRATION RE-

DUCTION TECHNOLOGIES.(a) IN GENERAL.—The Secretary shall, in

consultation with the appropriate industryrepresentatives, conduct a study to assessthe cost-effectiveness, technical perform-ance, energy efficiency, and environmentalimpacts of active noise and vibration can-cellation technologies that use fast adaptingalgorithms.

(b) PROCEDURE.—In carrying out suchstudy, the Secretary shall—

(1) estimate the potential for conservingenergy and the economic and environmentalbenefits that may result from implementingactive noise and vibration abatement tech-nologies in demand side management; and

(2) evaluate the cost-effectiveness of activenoise and vibration cancellation tech-nologies as compared to other alternativesfor reducing noise and vibration.

(c) REPORT.—The Secretary shall transmitto the Congress, not later than 12 monthsafter the date of the enactment of this Act,a report containing the findings and conclu-sions of the study carried out under this sec-tion.

(d) DEMONSTRATION.—The Secretary may,based on the findings and conclusions of thestudy carried out under this section, conductat least one project designed to demonstratethe commercial application of active noiseand vibration cancellation technologiesusing fast adapting algorithms in productsor equipment with a significant potential forincreased energy efficiency.

TITLE II—NATURAL GASSEC. 201. FEWER RESTRICTIONS ON CERTAIN

NATURAL GAS IMPORTS AND EX-PORTS.

Section 3 of the Natural Gas Act (15 U.S.C.717b) is amended by inserting ‘‘(a)’’ before‘‘After six months’’; and by adding at the endthe following new subsections:

‘‘(b) With respect to natural gas which isimported into the United States from a na-tion with which there is in effect a free tradeagreement requiring national treatment fortrade in natural gas, and with respect to liq-uefied natural gas—

‘‘(1) the importation of such natural gasshall be treated as a ‘first sale’ within themeaning of section 2(21) of the Natural GasPolicy Act of 1978; and

‘‘(2) the Commission shall not, on the basisof national origin, treat any such importednatural gas on an unjust, unreasonable, un-duly discriminatory, or preferential basis.

‘‘(c) For purposes of subsection (a), the im-portation of the natural gas referred to insubsection (b), or the exportation of naturalgas to a nation with which there is in effecta free trade agreement requiring nationaltreatment for trade in natural gas, shall bedeemed to be consistent with the public in-terest, and applications for such importationor exportation shall be granted withoutmodification or delay.’’.SEC. 202. SENSE OF CONGRESS.

It is the sense of the Congress that naturalgas consumers and producers, and the na-

tional economy, are best served by a com-petitive natural gas wellhead market.

TITLE III—ALTERNATIVE FUELS—GENERAL

SEC. 301. DEFINITIONS.

For purposes of this title, title IV, andtitle V (unless otherwise specified)—

(1) the term ‘‘Administrator’’ means theAdministrator of the Environmental Protec-tion Agency;

(2) the term ‘‘alternative fuel’’ meansmethanol, denatured ethanol, and other alco-hols; mixtures containing 85 percent or more(or such other percentage, but not less than70 percent, as determined by the Secretary,by rule, to provide for requirements relatingto cold start, safety, or vehicle functions) byvolume of methanol, denatured ethanol, andother alcohols with gasoline or other fuels;natural gas; liquefied petroleum gas; hydro-gen; coal-derived liquid fuels; fuels (otherthan alcohol) derived from biological mate-rials; electricity (including electricity fromsolar energy); and any other fuel the Sec-retary determines, by rule, is substantiallynot petroleum and would yield substantialenergy security benefits and substantial en-vironmental benefits;

(3) the term ‘‘alternative fueled vehicle’’means a dedicated vehicle or a dual fueledvehicle;

(4) the term ‘‘comparable conventionallyfueled motor vehicle’’ means a motor vehiclewhich is, as determined by the Secretary—

(A) commercially available at the time thecomparability of the vehicle is being as-sessed;

(B) powered by an internal combustion en-gine that utilizes gasoline or diesel fuel asits fuel source; and

(C) provides passenger capacity or payloadcapacity the same or similar to the alter-native fueled vehicle to which it is beingcompared;

(5) ‘‘covered person’’ means a person thatowns, operates, leases, or otherwise con-trols—

(A) a fleet that contains at least 20 motorvehicles that are centrally fueled or capableof being centrally fueled, and are used pri-marily within a metropolitan statisticalarea or a consolidated metropolitan statis-tical area, as established by the Bureau ofthe Census, with a 1980 population of 250,000or more; and

(B) at least 50 motor vehicles within theUnited States;

(6) the term ‘‘dedicated vehicle’’ means—(A) a dedicated automobile, as such term is

defined in section 513(h)(1)(C) of the MotorVehicle Information and Cost Savings Act;or

(B) a motor vehicle, other than an auto-mobile, that operates solely on alternativefuel;

(7) the term ‘‘domestic’’ means derivedfrom resources within the several States, theDistrict of Columbia, the Commonwealth ofPuerto Rico, the United States Virgin Is-lands, Guam, America Samoa, the Common-wealth of the Northern Mariana Islands, orany other Commonwealth, territory, or pos-session of the United States, including theouter Continental Shelf, as such term is de-fined in the Outer Continental Shelf LandsAct, or from resources within a Nation withwhich there is in effect a free trade agree-ment requiring national treatment for trade;

(8) the term ‘‘dual fueled vehicle’’ means—(A) dual fueled automobile, as such term is

defined in section 513(h)(1)(D) of the MotorVehicle Information and Cost Savings Act;or

(B) a motor vehicle, other than an auto-mobile, that is capable of operating on alter-native fuel and is capable of operating ongasoline or diesel fuel;


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1992 T121.25(9) the term ‘‘fleet’’ means a group of 20 or

more light duty motor vehicles, used pri-marily in a metropolitan statistical area orconsolidated metropolitan statistical area,as established by the Bureau of the Census,with a 1980 population of more than 250,000,that are centrally fueled or capable of beingcentrally fueled and are owned, operated,leased, or otherwise controlled by a govern-mental entity or other person who owns, op-erates, leases, or otherwise controls 50 ormore such vehicles, by any person who con-trols such person, by any person controlledby such person, and by any person undercommon control with such person, exceptthat such term does not include—

(A) motor vehicles held for lease or rentalto the general public;

(B) motor vehicles held for sale by motorvehicle dealers, including demonstrationmotor vehicles;

(C) motor vehicles used for motor vehiclemanufacturer product evaluations or tests;

(D) law enforcement motor vehicles;(E) emergency motor vehicles;(F) motor vehicles acquired and used for

military purposes that the Secretary of De-fense has certified to the Secretary must beexempt for national security reasons;

(G) nonroad vehicles, including farm andconstruction motor vehicles; or

(H) motor vehicles which under normal op-erations are garaged at personal residencesat night;

(10) the term ‘‘fuel supplier’’ means—(A) any person engaged in the importing,

refining, or processing of crude oil toproduce motor fuel;

(B) any person engaged in the importation,production, storage, transportation, dis-tribution, or sale of motor fuel; and

(C) any person engaged in generating,transmitting, importing, or selling at whole-sale or retail electricity;

(11) the term ‘‘light duty motor vehicle’’means a light duty truck or light duty vehi-cle, as such terms are defined under section216(7) of the Clean Air Act (42 U.S.C. 7550(7)),of less than or equal to 8,500 pounds gross ve-hicle weight rating;

(12) the term ‘‘motor fuel’’ means any sub-stance suitable as a fuel for a motor vehicle;

(13) the term ‘‘motor vehicle’’ has themeaning given such term under section 216(2)of the Clean Air Act (42 U.S.C. 7550(2)); and

(14) the term ‘‘replacement fuel’’ meansthe portion of any motor fuel that is meth-anol, ethanol, or other alcohols, natural gas,liquefied petroleum gas, hydrogen, coal de-rived liquid fuels, fuels (other than alcohol)derived from biological materials, electricity(including electricity from solar energy),ethers, or any other fuel the Secretary deter-mines, by rule, is substantially not petro-leum and would yield substantial energy se-curity benefits and substantial environ-mental benefits.SEC. 302. AMENDMENTS TO THE ENERGY POLICY

AND CONSERVATION ACT.(a) AMENDMENTS.—Section 400AA of the

Energy Policy and Conservation Act (42U.S.C. 6374) is amended—

(1) in subsection (a)(1)—(A) by striking ‘‘passenger automobiles

and light duty trucks’’ and inserting in lieuthereof ‘‘vehicles’’; and

(B) by striking ‘‘alcohol powered vehicles,dual energy vehicles, natural gas powered ve-hicles, or natural gas dual energy vehicles.’’and inserting in lieu thereof ‘‘alternativefueled vehicles. In no event shall the numberof such vehicles acquired be less than thenumber required under section 303 of the En-ergy Policy Act of 1992.’’;

(2) by amending subsection (a)(3) to read asfollows:

‘‘(3)(A) To the extent practicable, the Sec-retary shall acquire both dedicated and dual

fueled vehicles, and shall ensure that eachtype of alternative fueled vehicle is used bythe Federal Government.

‘‘(B) Vehicles acquired under this sectionshall be acquired from original equipmentmanufacturers. If such vehicles are notavailable from original equipment manufac-turers, vehicles converted to use alternativefuels may be acquired if, after conversion,the original equipment manufacturer’s war-ranty continues to apply to such vehicles,pursuant to an agreement between the origi-nal equipment manufacturer and the personperforming the conversion. This subpara-graph shall not apply to vehicles acquired bythe United States Postal Service pursuant toa contract entered into by the United StatesPostal Service before the date of enactmentof this subparagraph and which terminateson or before December 31, 1997.

‘‘(C) Alternative fueled vehicles, otherthan those described in subparagraph (B),may be acquired solely for the purposes ofstudies under subsection (b), whether or notoriginal equipment manufacturer warrantiesstill apply.

‘‘(D) In deciding which types of alternativefueled vehicles to acquire in implementingthis part, the Secretary shall consider as afactor—

‘‘(i) which types of vehicles yield the great-est reduction in pollutants emitted per dol-lar spent; and

‘‘(ii) the source of the fuel to supply the ve-hicles, giving preference to vehicles that op-erate on alternative fuels derived from do-mestic sources.

‘‘(E) Dual fueled vehicles acquired pursu-ant to this section shall be operated on alter-native fuels unless the Secretary determinesthat operation on such alternative fuels isnot feasible.

‘‘(F) At least 50 percent of the alternativefuels used in vehicles acquired pursuant tothis section shall be derived from domesticfeedstocks, except to the extent inconsistentwith the General Agreement on Tariffs andTrade. The Secretary shall issue regulationsto implement this requirement. For purposesof this subparagraph, the term ‘domestic’has the meaning given such term in section301(7) of the Energy Policy Act of 1992.

‘‘(G) Except to the extent inconsistentwith the General Agreement on Tariffs andTrade, vehicles acquired under this sectionshall be motor vehicles manufactured in theUnited States or Canada.’’;

(3) by adding at the end of subsection (a)the following new paragraph:

‘‘(4) Acquisitions of vehicles under this sec-tion shall, to the extent practicable, be co-ordinated with acquisitions of alternativefueled vehicles by State and local govern-ments.’’;

(4) in subsection (b), by inserting afterparagraph (2) the following new paragraphs:

‘‘(3)(A) The Secretary, in cooperation withthe Environmental Protection Agency andthe Department of Transportation, shall col-lect data and conduct a study of heavy dutyvehicles acquired under subsection (a), whichshall at a minimum address—

‘‘(i) the performance of such vehicles, in-cluding reliability, durability, and perform-ance in cold weather and at high altitude;

‘‘(ii) the fuel economy, safety, and emis-sions of such vehicles; and

‘‘(iii) a comparison of the operation andmaintenance costs of such vehicles to the op-eration and maintenance costs of conven-tionally fueled heavy duty vehicles.

‘‘(B) The Secretary shall provide a reporton the results of the study conducted undersubparagraph (A) to the Committees on Com-merce, Science, and Transportation, Govern-mental Affairs, and Energy and Natural Re-sources of the Senate, and the Committeeson Energy and Commerce and GovernmentOperations of the House of Representatives,

within one year after the first such vehiclesare acquired, and annually thereafter.

‘‘(4)(A) The Secretary and the Adminis-trator of the General Services Administra-tion shall conduct a study of the advisabil-ity, feasibility, and timing of the disposal ofheavy duty vehicles acquired under sub-section (a) and any problems with such dis-posal. Such study shall take into account ex-isting laws governing the sale of Governmentvehicles and shall specifically focus on whento sell such vehicles and what price tocharge.

‘‘(B) The Secretary and the Administratorof the General Services Administration shallreport the results of the study conductedunder subparagraph (A) to the Committeeson Commerce, Science, and Transportation,Governmental Affairs, and Energy and Natu-ral Resources of the Senate, and the Com-mittee on Energy and Commerce and theCommittee on Government Operations of theHouse of Representatives, within one yearafter funds are appropriated for carrying outthis paragraph.

‘‘(5) Studies undertaken under this sub-section shall be coordinated with relevanttesting activities of the Environmental Pro-tection Agency and the Department ofTransportation.’’;

(5) in subsection (c)—(A) by striking ‘‘alcohol or natural gas, al-

cohol or natural gas’’ and inserting in lieuthereof ‘‘alternative fuels, such fuels’’; and

(B) by striking ‘‘alcohol or natural gas’’and inserting in lieu thereof ‘‘alternativefuel’’ in paragraph (1);

(6) in subsection (d)(2)(B), by striking ‘‘TheSecretary’’ and inserting in lieu thereof ‘‘Tothe extent that appropriations are availablefor such purposes, the Secretary’’;

(7) in subsection (g), by striking para-graphs (2) through (6) and inserting in lieuthereof the following:

‘‘(2) the term ‘‘alternative fuel’’ meansmethanol, denatured ethanol, and other alco-hols; mixtures containing 85 percent or more(or such other percentage, but not less than70 percent, as determined by the Secretary,by rule, to provide for requirements relatingto cold start, safety, or vehicle functions) byvolume of methanol, denatured ethanol, andother alcohols with gasoline or other fuels;natural gas; liquefied petroleum gas; hydro-gen; coal-derived liquid fuels; fuels (otherthan alcohol) derived from biological mate-rials; electricity (including electricity fromsolar energy); and any other fuel the Sec-retary determines, by rule, is substantiallynot petroleum and would yield substantialenergy security benefits and substantial en-vironmental benefits;

‘‘(3) the term ‘alternative fueled vehicle’means a dedicated vehicle or a dual fueledvehicle;

‘‘(4) the term ‘dedicated vehicle’ means—‘‘(A) a dedicated automobile, as such term

is defined in section 513(h)(1)(C) of the MotorVehicle Information and Cost Savings Act;or

‘‘(B) a motor vehicle, other than an auto-mobile, that operates solely on alternativefuel;

‘‘(5) the term ‘dual fueled vehicle’ means—‘‘(A) dual fueled automobile, as such term

is defined in section 513(h)(1)(D) of the MotorVehicle Information and Cost Savings Act;or

‘‘(B) a motor vehicle, other than an auto-mobile, that is capable of operating on alter-native fuel and is capable of operating ongasoline or diesel fuel; and

‘‘(6) the term ‘heavy duty vehicle’ means avehicle of greater than 8,500 pounds gross ve-hicle weight rating.’’; and

(8) by amending subsection (i)(1) to read asfollows: ‘‘(1) For the purposes of this section,there are authorized to be appropriated suchsums as may be necessary for fiscal years

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OCTOBER 5T121.251993 through 1998, to remain available untilexpended.’’.

(b) REPEAL OF TERMINATION DATE.—Section4(b) of the Alternative Motor Fuels Act of1988 is repealed.SEC. 303. MINIMUM FEDERAL FLEET REQUIRE-

MENT.(a) GENERAL REQUIREMENTS.—(1) The Fed-

eral Government shall acquire at least—(A) 5,000 light duty alternative fueled vehi-

cles in fiscal year 1993;(B) 7,500 light duty alternative fueled vehi-

cles in fiscal year 1994; and(C) 10,000 light duty alternative fueled ve-

hicles in fiscal year 1995.(2) The Secretary shall allocate the acqui-

sitions necessary to meet the requirementsunder paragraph (1).

(b) PERCENTAGE REQUIREMENTS.—(1) Of thetotal number of vehicles acquired by a Fed-eral fleet, at least—

(A) 25 percent in fiscal year 1996;(B) 33 percent in fiscal year 1997;(C) 50 percent in fiscal year 1998; and(D) 75 percent in fiscal year 1999 and there-

after,shall be alternative fueled vehicles.

(2) The Secretary, in consultation with theAdministrator of General Services where ap-propriate, may permit a Federal fleet to ac-quire a smaller percentage than is requiredin paragraph (1), so long as the aggregatepercentage acquired by all Federal fleets isat least equal to the required percentage.

(3) For purposes of this subsection, theterm ‘‘Federal fleet’’ means 20 or more lightduty motor vehicles, located in a metropoli-tan statistical area or consolidated metro-politan statistical area, as established by theBureau of the Census, with a 1980 populationof more than 250,000, that are centrallyfueled or capable of being centrally fueledand are owned, operated, leased, or otherwisecontrolled by or assigned to any Federal ex-ecutive department, military department,Government corporation, independent estab-lishment, or executive agency, the UnitedStates Postal Service, the Congress, thecourts of the United States, or the ExecutiveOffice of the President. Such term does notinclude—

(A) motor vehicles held for lease or rentalto the general public;

(B) motor vehicles used for motor vehiclemanufacturer product evaluations or tests;

(C) law enforcement vehicles;(D) emergency vehicles;(E) motor vehicles acquired and used for

military purposes that the Secretary of De-fense has certified to the Secretary must beexempt for national security reasons; or

(F) nonroad vehicles, including farm andconstruction vehicles.

(c) ALLOCATION OF INCREMENTAL COSTS.—The General Services Administration andany other Federal agency that procuresmotor vehicles for distribution to other Fed-eral agencies may allocate the incrementalcost of alternative fueled vehicles over thecost of comparable gasoline vehicles acrossthe entire fleet of motor vehicles distributedby such agency.

(d) APPLICATION OF REQUIREMENTS.—Theprovisions of section 400AA of the EnergyPolicy and Conservation Act relating to theFederal acquisition of alternative fueled ve-hicles shall apply to the acquisition of vehi-cles pursuant to this section.

(e) RESALE.—The Administrator of GeneralServices shall take all feasible steps to en-sure that all alternative fueled vehicles soldby the Federal Government shall remain al-ternative fueled vehicles at time of sale.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated forcarrying out this section, such sums as maybe necessary for fiscal years 1993 through1998, to remain available until expended.

SEC. 304. REFUELING.(a) IN GENERAL.—Federal agencies shall, to

the maximum extent practicable, arrange forthe fueling of alternative fueled vehicles ac-quired under section 303 at commercial fuel-ing facilities that offer alternative fuels forsale to the public. If publicly available fuel-ing facilities are not convenient or acces-sible to the location of Federal alternativefueled vehicles purchased under section 303,Federal agencies are authorized to enter intocommercial arrangements for the purposesof fueling Federal alternative fueled vehi-cles, including, as appropriate, purchase,lease, contract, construction, or other ar-rangements in which the Federal Govern-ment is a participant.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this sectionsuch sums as may be necessary for fiscalyears 1993 through 1998, to remain availableuntil expended.SEC. 305. FEDERAL AGENCY PROMOTION, EDU-

CATION, AND COORDINATION.(a) PROMOTION AND EDUCATION.—The Sec-

retary, in cooperation with the Adminis-trator of General Services, shall promoteprograms and educate officials and employ-ees of Federal agencies on the merits of al-ternative fueled vehicles. The Secretary, incooperation with the Administrator of Gen-eral Services, shall provide and disseminateinformation to Federal agencies on—

(1) the location of refueling and mainte-nance facilities available to alternativefueled vehicles in the Federal fleet;

(2) the range and performance capabilitiesof alternative fueled vehicles;

(3) State and local government and com-mercial alternative fueled vehicle programs;

(4) Federal alternative fueled vehicle pur-chases and placements;

(5) the operation and maintenance of alter-native fueled vehicles in accordance with themanufacturer’s standards and recommenda-tions; and

(6) incentive programs established pursu-ant to sections 306 and 307 of this Act.

(b) ASSISTANCE IN PROCUREMENT ANDPLACEMENT.—The Secretary, in cooperationwith the Administrator of General Services,shall provide guidance, coordination andtechnical assistance to Federal agencies inthe procurement and geographic location ofalternative fueled vehicles purchasedthrough the Administrator of General Serv-ices. The procurement and geographic loca-tion of such vehicles shall comply with thepurchase requirements under section 303 ofthis Act.SEC. 306. AGENCY INCENTIVES PROGRAM.

(a) REDUCTION IN RATES.—To encourageand promote use of alternative fueled vehi-cles in Federal agencies, the Administratorof General Services may offer a reduction infees charged to agencies for the lease of al-ternative fueled vehicles below those feescharged for the lease of comparable conven-tionally fueled motor vehicles.

(b) SUNSET PROVISION.—This section shallcease to be effective 3 years after the date ofthe enactment of this Act.SEC. 307. RECOGNITION AND INCENTIVE AWARDS

PROGRAM.(a) AWARDS PROGRAM.—The Administrator

of General Services shall establish annualawards program to recognize those Federalemployees who demonstrate the strongestcommitment to the use of alternative fuelsand fuel conservation in Federal motor vehi-cles.

(b) CRITERIA.—The Administrator of Gen-eral Services shall provide annual awards toFederal employees who best demonstrate acommitment—

(1) to the success of the Federal alternativefueled vehicle program through—

(A) exemplary promotion of alternativefueled vehicle use within Federal agencies;

(B) proper alternative fueled vehicle careand maintenance;

(C) coordination with Federal, State, andlocal efforts;

(D) innovative alternative fueled vehicleprocurement, refueling, and maintenance ar-rangements with commercial entities;

(E) making regular requests for alternativefueled vehicles for agency use; and

(F) maintaining a high number of alter-native fueled vehicles used relative to com-parable conventionally fueled motor vehiclesused; and

(2) to fuel efficiency in Federal motor vehi-cle use through the promotion of such meas-ures as increased use of fuel-efficient vehi-cles, carpooling, ride-sharing, regular main-tenance, and other conservation and aware-ness measures.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated forthe purpose of carrying out this section notmore than $35,000 for fiscal year 1994 andsuch sums as may be necessary for each ofthe fiscal years 1995 and 1996.SEC. 308. MEASUREMENT OF ALTERNATIVE FUEL

USE.The Administrator of General Services

shall use such means as may be necessary tomeasure the percentage of alternative fueluse in dual-fueled vehicles procured by theAdministrator of General Services. Not laterthan one year after the date of the enact-ment of this Act, the Secretary, in consulta-tion with the Administrator of General Serv-ices, shall issue guidelines to Federal agen-cies for use in measuring the aggregate per-centage of alternative fuel use in dual-fueledvehicles in their fleets.SEC. 309. INFORMATION COLLECTION.

Section 400AA(b)(1)(A) of the Energy Pol-icy and Conservation Act is amended bystriking ‘‘the vehicles acquired under sub-section (a)’’ and inserting in lieu thereof ‘‘arepresentative sample of alternative fueledvehicles in Federal fleets’’.SEC. 310. GENERAL SERVICES ADMINISTRATION

REPORT.Not later than one year after the date of

the enactment of this Act, and bienniallythereafter, the Administrator of GeneralServices shall report to the Congress on theGeneral Services Administration’s alter-native fueled vehicle program under thisAct. The report shall contain informationon—

(1) the number and type of alternativefueled vehicles procured;

(2) the location of alternative fueled vehi-cles by standard Federal region;

(3) the total number of alternative fueledvehicles used by each Federal agency;

(4) arrangements with commercial entitiesfor refueling and maintenance of alternativefueled vehicles;

(5) future alternative fueled vehicle pro-curement and placement strategy;

(6) the difference in cost between the pur-chase, maintenance, and operation of alter-native fueled vehicles and the purchase,maintenance, and operation of comparableconventionally fueled motor vehicles;

(7) coordination among Federal, State, andlocal governments for alternative fueled ve-hicle procurement and placement;

(8) the percentage of alternative fuel use indual-fueled vehicles procured by the Admin-istrator of General Services as measuredunder section 308;

(9) a description of the representative sam-ple of alternative fueled vehicles as deter-mined under section 400AA(b)(1)(A) of theEnergy Policy and Conservation Act; and

(10) award recipients under this title.SEC. 311. UNITED STATES POSTAL SERVICE.

(a) REPORT.—Not later than one year afterthe date of the enactment of this Act, and bi-


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1992 T121.25ennially thereafter, the Postmaster Generalshall submit a report to the Congress on thePostal Service’s alternative fueled vehicleprogram. The report shall contain informa-tion on—

(1) the total number and type of alter-native fueled vehicles procured prior to thedate of the enactment of this Act (first re-port only);

(2) the number and type of alternativefueled vehicles procured in the precedingyear;

(3) the location of alternative fueled vehi-cles by region;

(4) arrangements with commercial entitiesfor purposes of refueling and maintenance;

(5) future alternative fuel procurement andplacement strategy;

(6) the difference in cost between the pur-chase, maintenance, and operation of alter-native fueled vehicles and the purchase,maintenance, and operation of comparableconventionally fueled motor vehicles;

(7) the percentage of alternative fuel use indual-fueled vehicles procured by the Post-master General;

(8) promotions and incentives to encouragethe use of alternative fuels in dual-fueled ve-hicles; and

(9) an assessment of the program’s relativesuccess and policy recommendations forstrengthening the program.

(b) COORDINATION.—To the maximum ex-tent practicable, the Postmaster Generalshall coordinate the Postal Service’s alter-native fueled vehicle procurement, place-ment, refueling, and maintenance programswith those at the Federal, State, and locallevel. The Postmaster General shall commu-nicate, share, and disseminate, on a regularbasis, information on such programs withthe Secretary, the Administrator of GeneralServices, and heads of appropriate Federalagencies.

(c) PROGRAM CRITERIA.—The PostmasterGeneral shall consider the following criteriain the procurement and placement of alter-native fueled vehicles:

(1) The procurement plans of State andlocal governments and other public and pri-vate institutions.

(2) The current and future availability ofrefueling and repair facilities.

(3) The reduction in emissions of the Post-al fleet.

(4) Whether the vehicle is to be used in anonattainment area as specified in the CleanAir Act Amendments of 1990.

(5) The operational requirements of thePostal fleet.

(6) The contribution to the reduction inthe consumption of oil in the transportationsector.

TITLE IV—ALTERNATIVE FUELS—NON-FEDERAL PROGRAMS

SEC. 401. TRUCK COMMERCIAL APPLICATIONPROGRAM.

(a) ALTERNATIVE FUELED TRUCKS.—Section400BB(a) of the Energy Policy and Conserva-tion Act (42 U.S.C. 6374a(a)) is amended bystriking ‘‘alcohol and natural gas’’ and in-serting in lieu thereof ‘‘alternative fuels’’.

(b) FUNDING.—Section 400BB(b)(1) of suchAct (42 U.S.C. 6374a(b)(1)) is amended to readas follows: ‘‘(1) There are authorized to beappropriated to the Secretary for carryingout this section such sums as may be nec-essary for fiscal years 1993 through 1995, toremain available until expended.’’.SEC. 402. CONFORMING AMENDMENTS.

Part J of title III of the Energy Policy andConservation Act is amended—

(1) in section 400CC(a)—(A) by striking ‘‘alcohol and buses capable

of operating on natural gas’’ and inserting inlieu thereof ‘‘alternative fuels’’; and

(B) by striking ‘‘both buses capable of op-erating on alcohol and buses capable of oper-

ating on natural gas’’ and inserting in lieuthereof ‘‘each of the various types of alter-native fuel buses’’;

(2) in section 400DD(d), by striking ‘‘alco-hols, natural gas, and other potential alter-native motor’’ and inserting in lieu thereof‘‘alternative’’; and

(3) in section 400DD(d) and (e), by striking‘‘motor’’ each place it appears.SEC. 403. ALTERNATIVE MOTOR FUELS AMEND-

MENTS.Title V of the Motor Vehicle Information

and Cost Savings Act (15 U.S.C. 2001 et seq.)is amended—

(1) in section 501(1), by striking ‘‘alcohol ornatural gas’’ and inserting in lieu thereof‘‘alternative fuel’’;

(2) in section 502(e)—(A) by striking ‘‘alcohol powered auto-

mobiles or natural gas powered’’ and insert-ing in lieu thereof ‘‘dedicated’’; and

(B) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’;

(3) in section 506(a)(4)—(A) in subparagraph (A)—(i) by striking ‘‘alcohol powered auto-

mobiles or natural gas powered’’ and insert-ing in lieu thereof ‘‘dedicated’’; and

(ii) by striking ‘‘alcohol or natural gas, asthe case may be’’ and inserting in lieu there-of ‘‘alternative fuels’’; and

(B) in subparagraph (B)—(i) by striking ‘‘energy automobiles or nat-

ural gas dual energy’’ and inserting in lieuthereof ‘‘fueled’’; and

(ii) by striking ‘‘energy automobile or nat-ural gas dual energy automobile, as the casemay be’’ and inserting in lieu thereof ‘‘fueledautomobile’’; and

(4) in section 506(b)(3)—(A) in subparagraph (A)—(i) by striking ‘‘energy automobiles and

natural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’;

(ii) by striking ‘‘alcohol or natural gas, asthe case may be’’ and inserting in lieu there-of ‘‘alternative fuels’’ in clause (i); and

(iii) by striking ‘‘alcohol or natural gas, asthe case may be’’ and inserting in lieu there-of ‘‘alternative fuels’’ in clause (ii); and

(B) in subparagraph (B)—(i) by striking ‘‘dual energy’’ and inserting

in lieu thereof ‘‘dual fueled’’; and(ii) by striking ‘‘alcohol’’ and inserting in

lieu thereof ‘‘alternative fuels’’ in clauses (i)and (ii); and

(5) in section 513—(A) in subsection (a)—(i) by striking ‘‘ALCOHOL POWERED’’ and in-

serting in lieu thereof ‘‘DEDICATED’’;(ii) by striking ‘‘If’’ and inserting in lieu

thereof ‘‘Except as provided in subsection (c)or in section 503(a)(3), if’’;

(iii) by striking ‘‘alcohol powered’’ and in-serting in lieu thereof ‘‘dedicated’’;

(iv) by striking ‘‘content of the alcohol’’and inserting in lieu thereof ‘‘content of thealternative fuel’’; and

(v) by striking ‘‘gallon of alcohol’’ and in-serting in lieu thereof ‘‘gallon of a liquid al-ternative fuel’’;

(B) in subsection (b)—(i) by striking ‘‘ENERGY’’ and inserting in

lieu thereof ‘‘FUELED’’;(ii) by striking ‘‘If’’ and inserting in lieu

thereof ‘‘Except as provided in subsection (d)or in section 503(a)(3), if’’;

(iii) by striking ‘‘energy’’ and inserting inlieu thereof ‘‘fueled’’; and

(iv) by striking ‘‘alcohol’’ and inserting inlieu thereof ‘‘alternative fuel’’ in paragraph(2);

(C) in subsection (c)—(i) by striking ‘‘NATURAL GAS POWERED’’

and inserting in lieu thereof ‘‘GASEOUS FUELDEDICATED’’;

(ii) by striking ‘‘powered’’ and inserting inlieu thereof ‘‘dedicated’’;

(iii) by striking ‘‘natural gas’’ each place itappears in the first sentence and inserting inlieu thereof ‘‘gaseous fuel’’; and

(iv) by adding at the end the following newsentence: ‘‘For purposes of this section, theSecretary shall determine the appropriategallons equivalent measurement for gaseousfuels other than natural gas, and a gallonequivalent of such gaseous fuel shall be con-sidered to have a fuel content of 15 one-hun-dredths of a gallon of fuel.’’;

(D) in subsection (d)—(i) by striking ‘‘NATURAL GAS DUAL EN-

ERGY’’ and inserting in lieu thereof ‘‘GASE-OUS FUEL DUAL FUELED’’;

(ii) by striking ‘‘dual energy’’ and insert-ing in lieu thereof ‘‘dual fueled’’; and

(iii) by striking ‘‘natural gas’’ each place itappears and inserting in lieu thereof ‘‘gase-ous fuel’’;

(E) in subsection (e), by striking ‘‘alcoholpowered automobile, dual energy auto-mobile, natural gas powered automobile, ornatural gas dual energy’’ and inserting inlieu thereof ‘‘dedicated automobile or dualfueled’’;

(F) in subsection (f)(2)(A)(i), by striking‘‘alcohol powered automobiles, natural gaspowered automobiles,’’ and inserting in lieuthereof ‘‘alternative fueled automobiles’’;

(G) in subsection (g)—(i) in paragraph (1)—(I) by inserting ‘‘, other than electric auto-

mobiles,’’ after ‘‘each category of auto-mobiles’’ in subparagraph (A);

(II) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ in subparagraph (A);

(III) by inserting ‘‘, other than electricautomobiles,’’ after ‘‘each category of auto-mobiles’’ in subparagraph (B);

(IV) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ in subparagraph (B);

(V) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ both places it appearsin subparagraph (C); and

(VI) by striking ‘‘energy automobile ornatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ in subparagraph (C);and

(ii) in paragraph (2)—(I) by striking ‘‘energy passenger auto-

mobiles or natural gas dual energy’’ and in-serting in lieu thereof ‘‘fueled’’ in subpara-graph (A);

(II) by striking ‘‘alcohol powered auto-mobiles or natural gas powered’’ and insert-ing in lieu thereof ‘‘dedicated’’ in subpara-graph (B); and

(III) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ in subparagraph (B);

(H) in subsection (h)(1)—(i) by striking subparagraphs (D) and (E)

and redesignating subparagraph (C) as sub-paragraph (D);

(ii) by striking subparagraphs (A) and (B)and inserting in lieu thereof the followingnew subparagraphs:

‘‘(A) the term ‘alternative fuel’ meansmethanol, denatured ethanol, and other alco-hols; mixtures containing 85 percent or more(or such other percentage, but not less than70 percent, as determined by the Secretary,by rule, to provide for requirements relatingto cold start, safety, or vehicle functions) byvolume of methanol, denatured ethanol, andother alcohols with gasoline or other fuels;natural gas; liquefied petroleum gas; hydro-gen; coal derived liquid fuels; fuels (otherthan alcohol) derived from biological mate-rials; electricity (including electricity fromsolar energy); and any other fuel the Sec-retary determines, by rule, is substantiallynot petroleum and would yield substantialenergy security benefits and substantial en-vironmental benefits;

JOURNAL OF THE

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OCTOBER 5T121.25‘‘(B) the term ‘alternative fueled auto-

mobile’ means an automobile that—‘‘(i) is a dedicated automobile; or‘‘(ii) is a dual fueled automobile;‘‘(C) the term ‘dedicated automobile’

means an automobile that operates solely onalternative fuels; and’’; and

(iii) in subparagraph (D), as so redesig-nated by clause (i) of this subparagraph—

(I) by striking ‘‘dual energy’’ and insertingin lieu thereof ‘‘dual fueled’’;

(II) by striking ‘‘alcohol’’ and inserting inlieu thereof ‘‘alternative fuel’’ in clauses (i),(ii), and (iii);

(III) by inserting ‘‘in the case of an auto-mobile capable of operating on a mixture ofan alternative fuel and gasoline or dieselfuel,’’ before ‘‘which, for model years’’ inclause (iii); and

(IV) by striking the semicolon at the endof clause (iv) and inserting in lieu thereof aperiod; and

(I) in subsection (h)(2)—(i) by striking ‘‘paragraphs (1)(C) and (D)’’

and inserting in lieu thereof ‘‘paragraph(1)(D)’’ in subparagraph (A);

(ii) by striking ‘‘energy automobiles whenoperating on alcohol, and by natural gasdual energy automobiles when operating onnatural gas’’ and inserting in lieu thereof‘‘fueled automobiles when operating on al-ternative fuels’’ in subparagraph (A);

(iii) by striking ‘‘energy automobiles ornatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ both places it appearsin subparagraph (A);

(iv) by striking ‘‘energy automobiles andnatural gas dual energy’’ and inserting inlieu thereof ‘‘fueled’’ in subparagraph (A);

(v) by striking ‘‘energy’’ and inserting inlieu thereof ‘‘fueled’’ each place it appears insubparagraphs (B) and (C); and

(vi) by inserting ‘‘other than electric auto-mobiles’’ after ‘‘automobiles’’ each place itappears in subparagraphs (B) and (C).SEC. 404. VEHICULAR NATURAL GAS JURISDIC-

TION.(a) NATURAL GAS ACT AMENDMENTS.—(1)

Section 1 of the Natural Gas Act (15 U.S.C.717) is amended by inserting after subsection(c) the following new subsection:

‘‘(d) The provisions of this Act shall notapply to any person solely by reason of, orwith respect to, any sale or transportation ofvehicular natural gas if such person is—

‘‘(1) not otherwise a natural-gas company;or

‘‘(2) subject primarily to regulation by aState commission, whether or not such Statecommission has, or is exercising, jurisdictionover the sale, sale for resale, or transpor-tation of vehicular natural gas.’’.

(2) Section 2 of the Natural Gas Act (15U.S.C. 717a) is amended by inserting afterparagraph (9) the following new paragraph:

‘‘(10) ‘Vehicular natural gas’ means naturalgas that is ultimately used as a fuel in a self-propelled vehicle.’’.

(b) STATE LAWS AND REGULATIONS.—Thetransportation or sale of natural gas by anyperson who is not otherwise a public utility,within the meaning of State law—

(1) in closed containers; or(2) otherwise to any person for use by such

person as a fuel in a self-propelled vehicle,shall not be considered to be a transpor-tation or sale of natural gas within themeaning of any State law, regulation, ororder in effect before January 1, 1989. Thissubsection shall not apply to any provisionof any State law, regulation, or order to theextent that such provision has as its primarypurpose the protection of public safety.

(c) NONAPPLICABILITY OF THE PUBLIC UTIL-ITY HOLDING COMPANY ACT OF 1935.—(1) Acompany shall not be considered to be a gasutility company under section 2(a)(4) of thePublic Utility Holding Company Act of 1935

(15 U.S.C. 79b(a)(4)) solely because it owns oroperates facilities used for the distributionat retail of vehicular natural gas.

(2) Notwithstanding section 11(b)(1) of thePublic Utility Holding Company Act of 1935(15 U.S.C. 79k(b)(1)), a holding company reg-istered under such Act solely by reason ofthe application of section 2(a)(7)(A) or (B) ofsuch Act with respect to control of a gasutility company or subsidiary thereof, mayacquire or retain, in any geographic area,any interest in a company that is not a pub-lic utility company and which, as a primarybusiness, is involved in the sale of vehicularnatural gas or the manufacture, sale, trans-port, installation, servicing, or financing ofequipment related to the sale for consump-tion of vehicular natural gas.

(3) The sale or transportation of vehicularnatural gas by a company, or any subsidiaryof such company, shall not be taken intoconsideration in determining whether undersection 3 of the Public Utility Holding Com-pany Act of 1935 (15 U.S.C. 79c) such companyis exempt from registration.

(4) For purposes of this subsection, termsthat are defined under the Public UtilityHolding Company Act of 1935 shall have themeaning given such terms in such Act.

(5) For purposes of this subsection, theterm ‘‘vehicular natural gas’’ means naturalor manufactured gas that is ultimately usedas a fuel in a self-propelled vehicle.SEC. 405. PUBLIC INFORMATION PROGRAM.

The Secretary, in consultation with appro-priate Federal agencies and individuals andorganizations with practical experience inthe production and use of alternative fuelsand alternative fueled vehicles, shall, for thepurposes of promoting the use of alternativefuels and alternative fueled vehicles, estab-lish a public information program on thebenefits and costs of the use of alternativefuels in motor vehicles. Within 18 monthsafter the date of enactment of this Act, theSecretary shall produce and make availablean information package for consumers to as-sist them in choosing among alternativefuels and alternative fueled vehicles. Suchinformation package shall provide relevantand objective information on motor vehiclecharacteristics and fuel characteristics ascompared to gasoline, on a life cycle basis,including environmental performance, en-ergy efficiency, domestic content, cost,maintenance requirements, reliability, andsafety. Such information package shall alsoinclude information with respect to the con-version of conventional motor vehicles to al-ternative fueled vehicles. The Secretaryshall include such other information as theSecretary determines is reasonable and nec-essary to help promote the use of alternativefuels in motor vehicles. Such informationpackage shall be updated annually to reflectthe most recent available information.SEC. 406. LABELING REQUIREMENTS.

(a) ESTABLISHMENT OF REQUIREMENTS.—TheFederal Trade Commission, in consultationwith the Secretary, the Administrator of theEnvironmental Protection Agency, and theSecretary of Transportation, shall, within 18months after the date of enactment of thisAct, issue a notice of proposed rulemakingfor a rule to establish uniform labeling re-quirements, to the greatest extent prac-ticable, for alternative fuels and alternativefueled vehicles, including requirements forappropriate information with respect tocosts and benefits, so as to reasonably enablethe consumer to make choices and compari-sons. Required labeling under the rule shallbe simple and, where appropriate, consoli-dated with other labels providing informa-tion to the consumer. In formulating therule, the Federal Trade Commission shallgive consideration to the problems associ-ated with developing and publishing useful

and timely cost and benefit information,taking into account lead time, costs, the fre-quency of changes in costs and benefits thatmay occur, and other relevant factors. TheCommission shall obtain the views of af-fected industries, consumer organizations,Federal and State agencies, and others informulating the rule. A final rule shall beissued within 1 year after the notice of pro-posed rulemaking is issued. Such rule shallbe updated periodically to reflect the mostrecent available information.

(b) TECHNICAL ASSISTANCE AND COORDINA-TION.—The Secretary shall provide technicalassistance to the Federal Trade Commissionin developing labeling requirements undersubsection (a). The Secretary shall coordi-nate activities under this section with ac-tivities under section 405.SEC. 407. DATA ACQUISITION PROGRAM.

(a) Not later than one year after the dateof enactment of this Act, the Secretary,through the Energy Information Administra-tion, and in cooperation with appropriateState, regional, and local authorities, shallestablish a data collection program to beconducted in at least 5 geographically andclimatically diverse regions of the UnitedStates for the purpose of collecting datawhich would be useful to persons seeking tomanufacture, convert, sell, own, or operatealternative fueled vehicles or alternativefueling facilities. Such data shall include—

(1) identification of the number and typesof motor vehicle trips made daily and milesdriven per trip, including commuting, busi-ness, and recreational trips;

(2) the projections of the Secretary as tothe most likely combination of alternativefueled vehicle use and other forms of transit,including rail and other forms of mass tran-sit;

(3) cost, performance, environmental, en-ergy, and safety data on alternative fuelsand alternative fueled vehicles; and

(4) other appropriate demographic informa-tion and consumer preferences.

(b) The Secretary shall consult with inter-ested parties, including other appropriateFederal agencies, manufacturers, public util-ities, owners and operators of fleets of lightduty motor vehicles, and State or local gov-ernmental entities, to determine the types ofdata to be collected and analyzed under sub-section (a).SEC. 408. FEDERAL ENERGY REGULATORY COM-

MISSION AUTHORITY TO APPROVERECOVERY OF CERTAIN EXPENSESIN ADVANCE.

(a) NATURAL GAS MOTOR VEHICLES.—TheFederal Energy Regulatory Commissionmay, under section 4 of the Natural Gas Act,allow recovery of expenses in advance bynatural-gas companies for research, develop-ment, and demonstration activities by theGas Research Institute for projects on theuse of natural gas, including fuels derivedfrom natural gas, for transportation, andprojects on the use of natural gas to controlpollutants and to control emissions from thecombustion of other fuels, if the Commissionfinds that the benefits, including environ-mental benefits, to existing and future rate-payers resulting from such activities exceedall direct costs to existing and future rate-payers. To the maximum extent practicable,through the establishment of cofunding re-quirements applicable to such projects, theCommission shall ensure that the costs ofsuch activities shall be provided in part,through contributions of cash, personnel,services, equipment, and other resources, bysources other than the recovery of expensespursuant to this section.

(b) ELECTRIC MOTOR VEHICLES.—The Fed-eral Energy Regulatory Commission may,under section 205 of the Federal Power Act,allow recovery of expenses in advance by


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1992 T121.25electric utilities for research, development,and demonstration activities by the ElectricPower Research Institute for projects onelectric motor vehicles, if the Commissionfinds that the benefits, including environ-mental benefits, to existing and future rate-payers resulting from such activities exceedall direct costs to existing and future rate-payers. To the maximum extent practicable,through the establishment of cofunding re-quirements applicable to each project, thecosts of such activities shall be provided, inpart, through contributions of cash, person-nel, services, equipment, and other re-sources, by sources other than the recoveryof expenses pursuant to this section.

(c) REPEAL.—The second paragraph of thematter under the heading ‘‘FEDERAL ENERGYREGULATORY COMMISSION, SALARIES AND EX-PENSES’’ in title III of the Energy and WaterDevelopment Appropriations Act, 1992, is re-pealed.SEC. 409. STATE AND LOCAL INCENTIVES PRO-

GRAMS.(a) ESTABLISHMENT OF PROGRAM.—(1) The

Secretary shall, within one year after thedate of enactment of this Act, issue regula-tions establishing guidelines for comprehen-sive State alternative fuels and alternativefueled vehicle incentives and program plansdesigned to accelerate the introduction anduse of such fuels and vehicles. Such guidelineshall address the development, modification,and implementation of such State plans andshall describe those program elements, as de-scribed in paragraph (3), to be addressed insuch plans.

(2) The Secretary, after consultation withthe Secretary of Transportation and the Ad-ministrator of the Environmental ProtectionAgency, shall invite the Governor of eachState to submit to the Secretary a Stateplan within one year after the effective dateof the regulations issued under paragraph (1).Such plan shall include—

(A) provisions designed to result in sched-uled progress toward, and achievement of,the goal of introducing substantial numbersof alternative fueled vehicles in such Stateby the year 2000; and

(B) a detailed description of the require-ments, including the estimated cost of im-plementation, of such plan.

(3) Each proposed State plan, in order to beeligible for Federal assistance under this sec-tion, shall describe the manner in which co-ordination shall be achieved with Federaland local governmental entities in imple-menting such plan, and shall include an ex-amination of—

(A) exemption from State sales tax orother State or local taxes or surcharges(other than such taxes or surcharges whichare dedicated for transportation purposes)with respect to alternative fueled vehicles,alternative fuels, or alternative fueling fa-cilities;

(B) the introduction of alternative fueledvehicles into State-owned or operated motorvehicle fleets;

(C) special parking at public buildings andairport and transportation facilities;

(D) programs of public education to pro-mote the use of alternative fueled vehicles;

(E) the treatment of sales of alternativefuels for use in alternative fueled vehicles;

(F) methods by which State and local gov-ernments might facilitate—

(i) the availability of alternative fuels; and(ii) the ability to recharge electric motor

vehicles at public locations;(G) allowing public utilities to include in

rates the incremental cost of—(i) new alternative fueled vehicles;(ii) converting conventional vehicles to op-

erate on alternative fuels; and(iii) installing alternative fuel fueling fa-

cilities,

but only to the extent that the inclusion ofsuch costs in rates would not create competi-tive disadvantages for other market partici-pants, and taking into consideration the ef-fect inclusion of such costs would have onrates, service, and reliability to other utilitycustomers;

(H) such other programs and incentives asthe State may describe;

(I) whether accomplishing any of the goalsin this subsection would require amendmentto State law or regulation, including trafficsafety prohibitions;

(J) services provided by municipal, county,and regional transit authorities; and

(K) effects of such plan on programs au-thorized by the Intermodal Surface Trans-portation Efficiency Act of 1991 and amend-ments made by that Act.

(b) FEDERAL ASSISTANCE TO STATES.—(1)Upon request of the Governor of any Statewith a plan approved under this section, theSecretary may provide to such State—

(A) information and technical assistance,including model State laws and proposed reg-ulations relating to alternative fueled vehi-cles;

(B) grants of Federal financial assistancefor the purpose of assisting such State in theimplementation of such plan or any partthereof; and

(C) grants of Federal financial assistancefor the acquisition of alternative fueled vehi-cles.

(2) In determining whether to approve aState plan submitted under subsection (a),and in determining the amount of Federal fi-nancial assistance, if any, to be provided toany State under this subsection, the Sec-retary shall take into account—

(A) the energy-related and environmental-related impacts, on a life cycle basis, of theintroduction and use of alternative fueledvehicles included in the plan compared toconventional motor vehicles;

(B) the number of alternative fueled vehi-cles likely to be introduced by the year 2000,as a result of successful implementation ofthe plan; and

(C) such other factors as the Secretaryconsiders appropriate.

(3) The Secretary, in consultation with theAdministrator of General Services, shall pro-vide assistance to States in procuring alter-native fueled vehicles, including coordina-tion with Federal procurements of such vehi-cles.

(4) The Secretary may not approve a Stateplan submitted under subsection (a) unlessthe State agrees to provide at least 20 per-cent of the cost of activities for which assist-ance is provided under paragraph (1).

(c) GENERAL PROVISIONS.—(1) In carryingout this section, the Secretary shall consultwith the Secretary of Transportation onmatters relating to transportation and withother appropriate Federal and State depart-ments and agencies.

(2) The Secretary shall report annually tothe President and the Congress, and shallfurnish copies of such report to the Governorof each State participating in the program,on the operation of the program under thissection. Such report shall include—

(A) an estimate of the number of alter-native fueled vehicles in use in each State;

(B) the degree of each State’s participationin the program;

(C) a description of Federal, State, andlocal programs undertaken in the variousStates, whether pursuant to a State planunder this section or not, to provide incen-tives for introduction of alternative fueledvehicles;

(D) an estimate of the energy and environ-mental benefits of the program; and

(E) the recommendations of the Secretary,if any, for additional action by the FederalGovernment.

(d) DEFINITIONS.—For the purposes of thissection, the following definitions apply:

(1) GOVERNOR.—The term ‘‘Governor’’means the chief executive of a State.

(2) STATE.—The term ‘‘State’’ means eachof the several States, the District of Colum-bia, the Commonwealth of Puerto Rico, theUnited States Virgin Islands, Guam, Amer-ican Samoa, the Commonwealth of theNorthern Mariana Islands, and any otherCommonwealth, territory, or possession ofthe United States.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated forcarrying out this section, $10,000,000 for eachof the 5 fiscal years beginning after the dateof enactment of this Act.SEC. 410. ALTERNATIVE FUEL BUS PROGRAM.

(a) COOPERATIVE AGREEMENTS AND JOINTVENTURES.—(1) The Secretary of Transpor-tation, in consultation with the Secretary,may enter into cooperative agreements andjoint ventures proposed by any municipal,county, or regional transit authority in anurban area with a population over 100,000 (ac-cording to latest available census informa-tion) to demonstrate the feasibility of com-mercial application, including safety of spe-cific vehicle design, of using alternativefuels for urban buses and other motor vehi-cles used for mass transit.

(2) The cooperative agreements and jointventures under paragraph (1) may include in-terested or affected private firms willing toprovide assistance in cash, or in kind, forany such demonstration.

(3) Federal assistance provided under coop-erative agreements and joint ventures en-tered into under paragraph (1) to dem-onstrate the feasibility of commercial appli-cation of using alternative fuels for urbanbuses shall be in addition to Federal assist-ance provided under any other law for suchpurpose.

(b) LIMITATIONS.—(1) The Secretary ofTransportation may not enter into coopera-tive agreement or joint venture under sub-section (a) with any municipal, county, orregional transit authority, unless such gov-ernment body agrees to provide 20 percent ofthe costs of such demonstration.

(2) The Secretary of Transportation maygrant such priority under this section to anyentity that demonstrates that the use of al-ternative fuels for transportation would havea significant beneficial effect on the environ-ment.

(c) SCHOOL BUSES.—The Secretary ofTransportation may also provide, in accord-ance with such rules as he may prescribe, fi-nancial assistance to any agency, municipal-ity, or political subdivision in an urban areareferred to in subsection (a), of any State orthe District of Columbia for the purpose ofmeeting the incremental costs of schoolbuses that are dedicated vehicles and usedregularly for such transportation during theschool term. Such costs may include the pur-chase and installation of alternative fuel re-fueling facilities to be used for school bus re-fueling, and the conversion of school buses todedicated vehicles. The Secretary of Trans-portation may provide such assistance di-rectly to a person who is a contractor of suchagency, municipality, or political subdivi-sion, upon the request of the agency, munici-pality, or political subdivision, and who,under such contract, provides for such trans-portation. Any conversion under this sub-section shall comply with the warranty andsafety requirements for alternative fuel con-versions contained in section 247 of the CleanAir Act Amendments of 1990.

(d) FUNDING AUTHORIZATION.—There are au-thorized to be appropriated not more than$30,000,000 for each of the fiscal years 1993,1994, and 1995 for purposes of this section.

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OCTOBER 5T121.25SEC. 411. CERTIFICATION OF TRAINING PRO-

GRAMS.The Secretary shall ensure that the Fed-

eral Government establishes and carries outa program for the certification of trainingprograms for technicians who are responsiblefor motor vehicle installation of equipmentthat converts gasoline or diesel-fueled motorvehicles into dedicated vehicles or dualfueled vehicles, and for the maintenance ofsuch converted motor vehicles. A trainingprogram shall not be certified under the pro-gram established under this section unless itprovides technicians with instruction on theproper and safe installation procedures andtechniques, adherence to specifications (in-cluding original equipment manufacturerspecifications), motor vehicle operating pro-cedures, emissions testing, and other appro-priate mechanical concerns applicable tothese motor vehicle conversions. The Sec-retary shall ensure that, in the developmentof the program required under this section,original equipment manufacturers, fuel sup-pliers, companies that convert conventionalvehicles to use alternative fuels, and otheraffected persons are consulted.SEC. 412. ALTERNATIVE FUEL USE IN NONROAD

VEHICLES AND ENGINES.(a) NONROAD VEHICLES AND ENGINES.—(1)

The Secretary shall conduct a study to de-termine whether the use of alternative fuelsin nonroad vehicles and engines would con-tribute substantially to reduced reliance onimported energy sources. Such study shall becompleted, and the results thereof reportedto Congress, within 2 years after the date ofenactment of this Act.

(2) The study shall assess the potential ofnonroad vehicles and engines to run on alter-native fuels. Taking into account thenonroad vehicles and engines for which run-ning on alternative fuels is feasible, thestudy shall assess the potential reduction inreliance on foreign energy sources that couldbe achieved if such vehicles were to run onalternative fuels.

(3) The report required under paragraph (1)may include the Secretary’s recommenda-tions for encouraging or requiring nonroadvehicles and engines which can feasibly berun on alternative fuels, to utilize such al-ternative fuels.

(b) DEFINITION OF NONROAD VEHICLES ANDENGINES.—Nonroad vehicles and engines, forpurposes of this section, shall includenonroad vehicles and engines used for sur-face transportation or principally for indus-trial or commercial purposes, vehicles usedfor rail transportation, vehicles used at air-ports, vehicles or engines used for marinepurposes, and other vehicles or engines atthe discretion of the Secretary.

(c) DESIGNATION.—Upon completion of thestudy required pursuant to subsection (a) ofthis section, the Secretary may designatesuch vehicles and engines as qualifying forloans pursuant to section 414 of this title.SEC. 413. REPORTS TO CONGRESS.

Within 6 months after the date of enact-ment of this Act, the Secretary shall—

(1) identify and report to Congress on pur-chasing policies of the Federal Governmentwhich inhibit or prevent the purchase by theFederal Government of alternative fueled ve-hicles; and

(2) report to Congress on Federal, State,and local traffic control measures and poli-cies and how the use of alternative fueled ve-hicles could be promoted by granting suchvehicles exemptions or preferential treat-ment under such measures.SEC. 414. LOW INTEREST LOAN PROGRAM.

(a) ESTABLISHMENT.—Within 1 year afterthe date of enactment of this Act, the Sec-retary shall establish a program for makinglow interest loans, giving preference to smallbusinesses that own or operate fleets, for—

(1) the conversion of motor vehicles to op-eration on alternative fuels;

(2) covering the incremental costs of thepurchase of motor vehicles which operate onalternative fuels, when compared with pur-chase costs of comparable conventionallyfueled motor vehicles; or

(3) covering the incremental costs of pur-chase of non-road vehicles and engines des-ignated by the Secretary pursuant to section412(c) of this title.

(b) LOAN TERMS.—The Secretary, to the ex-tent practicable, shall establish reasonableterms for loans made under this subsection,with preference given to repayment sched-ules that enable such loans to be repaid bythe borrower from the cost differential be-tween gasoline and the alternative fuel onwhich the motor vehicle operates.

(c) CRITERIA.—In deciding to whom loansshall be made under this subsection, the Sec-retary shall consider—

(1) the financial need of the applicant;(2) the goal of assisting the greatest num-

ber of applicants; and(3) the ability of an applicant to repay the

loan, taking into account the fuel cost sav-ings likely to accrue to the applicant.

(d) PRIORITIES.—Priority shall be givenunder this section to fleets where the use ofalternative fuels would have a significantbeneficial effect on energy security and theenvironment.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section,$25,000,000 for each of the fiscal years 1993,1994, and 1995.TITLE V—AVAILABILITY AND USE OF RE-

PLACEMENT FUELS, ALTERNATIVEFUELS, AND ALTERNATIVE FUELED PRI-VATE VEHICLES

SEC. 501. MANDATE FOR ALTERNATIVE FUELPROVIDERS.

(a) IN GENERAL.—(1) The Secretary shall,before January 1, 1994, issue regulations re-quiring that of the new light duty motor ve-hicles acquired by a covered person describedin paragraph (2), the following percentagesshall be alternative fueled vehicles for thefollowing model years:

(A) 30 percent for model year 1996.(B) 50 percent for model year 1997.(C) 70 percent for model year 1998.(D) 90 percent for model year 1999 and

thereafter.(2) For purposes of this section, a person

referred to in paragraph (1) is—(A) a covered person whose principal busi-

ness is producing, storing, refining, process-ing, transporting, distributing, importing, orselling at wholesale or retail any alternativefuel other than electricity;

(B) a non-Federal covered person whoseprincipal business is generating, transmit-ting, importing, or selling at wholesale or re-tail electricity; or

(C) a covered person—(i) who produces, imports, or produces and

imports in combination, an average of 50,000barrels per day or more of petroleum; and

(ii) a substantial portion of whose businessis producing alternative fuels.

(3)(A) In the case of a covered person de-scribed in paragraph (2) with more than oneaffiliate, division, or other business unit,only an affiliate, division, or business unitwhich is substantially engaged in the alter-native fuels business (as determined by theSecretary by rule) shall be subject to thissubsection.

(B) No covered person or affiliate, division,or other business unit of such person whoseprincipal business is—

(i) transforming alternative fuels into aproduct that is not an alternative fuel; or

(ii) consuming alternative fuels as a feed-stock or fuel in the manufacture of a productthat is not an alternative fuel,

shall be subject to this subsection.(4) The vehicles purchased pursuant to this

section shall be operated solely on alter-native fuels except when operating in anarea where the appropriate alternative fuelis unavailable.

(5) Regulations issued under paragraph (1)shall provide for the prompt exemption bythe Secretary, through a simple and reason-able process, from the requirements of para-graph (1) of any covered person, in whole orin part, if such person demonstrates to thesatisfaction of the Secretary that—

(A) alternative fueled vehicles that meetthe normal requirements and practices of theprincipal business of that person are not rea-sonably available for acquisition; or

(B) alternative fuels that meet the normalrequirements and practices of the principalbusiness of that person are not available inthe area in which the vehicles are to be oper-ated.

(b) REVISIONS AND EXTENSIONS.—With re-spect to model years 1997 and thereafter, theSecretary may—

(1) revise the percentage requirementsunder subsection (a)(1) downward, exceptthat under no circumstances shall the per-centage requirement for a model year be lessthan 20 percent; and

(2) extend the time under subsection (a)(1)for up to 2 model years.

(c) OPTION FOR ELECTRIC UTILITIES.—TheSecretary shall, within 1 year after the dateof enactment of this Act, issue regulationsrequiring that, in the case of a covered per-son whose principal business is generating,transmitting, importing, or selling at whole-sale or retail electricity, the requirements ofsubsection (a)(1) shall not apply until afterDecember 31, 1997, with respect to electricmotor vehicles. Any covered person de-scribed in this subsection which plans to ac-quire electric motor vehicles to comply withthe requirements of this section shall so no-tify the Secretary before January 1, 1996.

(d) REPORT TO CONGRESS.—The Secretaryshall, before January 1, 1998, submit a reportto the Congress providing detailed informa-tion on actions taken to carry out this sec-tion, and the progress made and problems en-countered thereunder.SEC. 502. REPLACEMENT FUEL SUPPLY AND DE-

MAND PROGRAM.(a) ESTABLISHMENT OF PROGRAM.—The Sec-

retary shall establish a program to promotethe development and use in light duty motorvehicles of domestic replacement fuels. Suchprogram shall promote the replacement ofpetroleum motor fuels with replacementfuels to the maximum extent practicable.Such program shall, to the extent prac-ticable, ensure the availability of those re-placement fuels that will have the greatestimpact in reducing oil imports, improvingthe health of our Nation’s economy and re-ducing greenhouse gas emissions.

(b) DEVELOPMENT PLAN AND PRODUCTIONGOALS.—Under the program establishedunder subsection (a), the Secretary, beforeOctober 1, 1993, in consultation with the Ad-ministrator, the Secretary of Transpor-tation, the Secretary of Agriculture, theSecretary of Commerce, and the heads ofother appropriate agencies, shall review ap-propriate information and—

(1) estimate the domestic and nondomesticproduction capacity for replacement fuelsand alternative fueled vehicles needed to im-plement this section;

(2) determine the technical and economicfeasibility of achieving the goals of produc-ing sufficient replacement fuels to replace,on an energy equivalent basis—

(A) at least 10 percent by the year 2000; and(B) at least 30 percent by the year 2010,

of the projected consumption of motor fuelin the United States for each such year, with


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1992 T121.25at least one half of such replacement fuelsbeing domestic fuels;

(3) determine the most suitable means andmethods of developing and encouraging theproduction, distribution, and use of replace-ment fuels and alternative fueled vehicles ina manner that would meet the program goalsdescribed in subsection (a);

(4) identify ways to encourage the develop-ment of reliable replacement fuels and alter-native fueled vehicle industries in the UnitedStates, and the technical, economic, and in-stitutional barriers to such development;and

(5) determine the greenhouse gas emissionimplications of increasing the use of replace-ment fuels, including an estimate of themaximum feasible reduction in such emis-sions from the use of replacement fuels.The Secretary shall publish in the FederalRegister the results of actions taken underthis subsection, and provide for an oppor-tunity for public comment.SEC. 503. REPLACEMENT FUEL DEMAND ESTI-

MATES AND SUPPLY INFORMATION.(a) ESTIMATES.—Not later than October 1,

1993, and annually thereafter, the Secretary,in consultation with the Administrator, theSecretary of Transportation, and other ap-propriate State and Federal officials, shallestimate for the following calendar year—

(1) the number of each type of alternativefueled vehicle likely to be in use in theUnited States;

(2) the probable geographic distribution ofsuch vehicles;

(3) the amount and distribution of eachtype of replacement fuel; and

(4) the greenhouse gas emissions likely toresult from replacement fuel use.

(b) INFORMATION.—Beginning on October 1,1994, the Secretary shall annually require—

(1) fuel suppliers to report to the Secretaryon the amount of each type of replacementfuel that such supplier—

(A) has supplied in the previous calendaryear; and

(B) plans to supply for the following cal-endar year;

(2) suppliers of alternative fueled vehiclesto report to the Secretary on the number ofeach type of alternative fueled vehicle thatsuch supplier—

(A) has made available in the previous cal-endar year; and

(B) plans to make available for the follow-ing calendar year; and

(3) such fuel suppliers to provide the Sec-retary information necessary to determinethe greenhouse gas emissions from the re-placement fuels used, taking into accountthe entire fuel cycle.

(c) PROTECTION OF INFORMATION.—Informa-tion provided to the Secretary under sub-section (b) shall be subject to applicable pro-visions of law protecting the confidentialityof trade secrets and business and financialinformation, including section 1905 of title18, United States Code.SEC. 504. MODIFICATION OF GOALS; ADDITIONAL

RULEMAKING AUTHORITY.(a) EXAMINATION OF GOALS.—Within 3 years

after the date of enactment of this Act, andperiodically thereafter, the Secretary shallexamine the goals established under section502(b)(2), in the context of the program goalsstated under section 502(a), to determine ifthe goals under section 502(b)(2), includingthe applicable percentage requirements anddates, should be modified under this section.The Secretary shall publish in the FederalRegister the results of each examinationunder this subsection and provide an oppor-tunity for public comment.

(b) MODIFICATION OF GOALS.—If, after anal-ysis of information obtained in connectionwith carrying out subsection (a) or section502, or other information, and taking into ac-

count the determination of technical andeconomic feasibility made under section502(b)(2), the Secretary determines that goalsdescribed in section 502(b)(2), including thepercentage requirements or dates, are notachievable, the Secretary, in consultationwith appropriate Federal agencies, shall, byrule, establish goals that are achievable, forpurposes of this title. The modification ofgoals under this section may include chang-ing the target dates specified in section502(b)(2).

(c) ADDITIONAL RULEMAKING AUTHORITY.—Ifthe Secretary determines that the achieve-ment of goals described in section 502(b)(2)would result in a significant and correctablefailure to meet the program goals describedin section 502(a), the Secretary shall issuesuch additional regulations as are necessaryto remedy such failure. The Secretary shallhave no authority under this Act to mandatethe production of alternative fueled vehiclesor to specify, as applicable, the models,lines, or types of, or marketing or pricingpractices, policies, or strategies for, vehiclessubject to this Act. Nothing in this Act shallbe construed to give the Secretary authorityto mandate marketing or pricing practices,policies, or strategies for alternative fuels orto mandate the production or delivery ofsuch fuels.SEC. 505. VOLUNTARY SUPPLY COMMITMENTS.

The Secretary shall, by January 1, 1994,and thereafter, undertake to obtain vol-untary commitments in geographically di-verse regions of the United States—

(1) from fuel suppliers to make available tothe public replacement fuels, including pro-viding for the construction or availability ofrelated fuel delivery systems;

(2) from owners of 10 or more motor vehi-cles to acquire and use alternative fueled ve-hicles and alternative fuels; and

(3) from suppliers of alternative fueled ve-hicles to make available to the public alter-native fueled vehicles and to ensure theavailability of necessary related services,in sufficient volume to achieve the goals de-scribed in section 502(b)(2) or as modifiedunder section 504, and in order to meet anyfleet requirement program established byrule under this title. The Secretary shall pe-riodically report to the Congress on the re-sults of efforts under this section. All vol-untary commitments obtained pursuant tothis section shall be available to the public,except to the extent provided in applicableprovisions of law protecting the confidential-ity of trade secrets and business and finan-cial information, including section 1905 oftitle 18, United States Code.SEC. 506. TECHNICAL AND POLICY ANALYSIS.

(a) REQUIREMENT.—Not later than March 1,1995, and March 1, 1997, the Secretary shallprepare and transmit to the President andthe Congress a technical and policy analysisunder this section. The Secretary shall uti-lize the analytical capability and authoritiesof the Energy Information Administrationand such other offices of the Department ofEnergy as the Secretary considers appro-priate.

(b) PURPOSES.—The technical and policyanalysis prepared under this section shall bebased on the best available data and infor-mation obtainable by the Secretary undersection 503, or otherwise, and on experienceunder this title and other provisions of lawin the development and use of replacementfuels and alternative fueled vehicles, andshall evaluate—

(1) progress made in achieving the goals de-scribed in section 502(b)(2), as modified undersection 504;

(2) the actual and potential role of replace-ment fuels and alternative fueled vehicles insignificantly reducing United States relianceon imported oil to the extent of the goals re-ferred to in paragraph (1); and

(3) the actual and potential availability ofvarious domestic replacement fuels and dedi-cated vehicles and dual fueled vehicles.

(c) PUBLICATION.—The Secretary shall pub-lish a proposed version of each analysisunder this section in the Federal Register forpublic comment before transmittal to thePresident and the Congress. Public commentreceived in response to such publicationshall be preserved for use in rulemaking pro-ceedings under section 507.SEC. 507. FLEET REQUIREMENT PROGRAM.

(a) FLEET PROGRAM PURCHASE GOALS.—(1)Except as provided in paragraph (2), the fol-lowing percentages of new light duty motorvehicles acquired in each model year for afleet, other than a Federal fleet, State fleet,or fleet owned, operated, leased, or otherwisecontrolled by a covered person subject tosection 501, shall be alternative fueled vehi-cles:

(A) 20 percent of the motor vehicles ac-quired in model years 1999, 2000, and 2001;

(B) 30 percent of the motor vehicles ac-quired in model year 2002;

(C) 40 percent of the motor vehicles ac-quired in model year 2003;

(D) 50 percent of the motor vehicles ac-quired in model year 2004;

(E) 60 percent of the motor vehicles ac-quired in model year 2005; and

(F) 70 percent of the motor vehicles ac-quired in model year 2006 and thereafter.

(2) The Secretary may not establish per-centage requirements higher than those de-scribed in paragraph (1). The Secretary may,if appropriate, and pursuant to a rule undersubsection (b), establish a lesser percentagerequirement for any model year. The Sec-retary may, by rule, establish a date laterthan 1998 (or model year 1999) for initiatingthe fleet requirements under paragraph (1).

(3) The Secretary shall publish an advancenotice of proposed rulemaking for the pur-pose of—

(A) evaluating the progress toward achiev-ing the goals of replacement fuel use de-scribed in section 502(b)(2), as modified undersection 504;

(B) identifying the problems associatedwith achieving those goals;

(C) assessing the adequacy and practicabil-ity of those goals; and

(D) considering all actions needed toachieve those goals.The Secretary shall provide for at least 3 re-gional hearings on the advance notice of pro-posed rulemaking, with respect to which offi-cial transcripts shall be maintained. Thecomment period in connection with such ad-vance notice of proposed rulemaking shall becompleted within 7 months after publicationof the advance notice.

(4) After the completion of such advancenotice of proposed rulemaking, the Sec-retary shall publish in the Federal Registera proposed rule for the rule required undersubsection (b), and shall provide for a publiccomment period, with hearings, of not lessthan 90 days.

(b) EARLY RULEMAKING.—(1) Not earlierthan 1 year after the date of the enactmentof this Act, and after carrying out the re-quirements of subsection (a), the Secretaryshall initiate a rulemaking to determinewhether a fleet requirement program tobegin in calendar year 1998 (when model year1999 begins), or such other later date as hemay select pursuant to subsection (a), is nec-essary under this section. Such rule, consist-ent with subsection (a)(1), shall establish theannual applicable model year percentage. Norule under this subsection may be promul-gated after December 15, 1996, and be enforce-able. A fleet requirement program shall beconsidered necessary and a rule thereforshall be promulgated if the Secretary findsthat—

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OCTOBER 5T121.25(A) the goal of replacement fuel use de-

scribed in section 502(b)(2)(B), as modifiedunder section 504, is not expected to be actu-ally achieved by 2010, or such other date as isestablished under section 504, by voluntarymeans or pursuant to this title or any otherlaw without such a fleet requirement pro-gram, taking into consideration the status ofthe achievement of the interim goal de-scribed in section 502(b)(2)(A), as modifiedunder section 504;

(B) such goal is practicable and actuallyachievable within periods specified in section502(b)(2), as modified under section 504,through implementation of such a fleet re-quirement program in combination with vol-untary means and the application of otherprograms relevant to achieving such goals;and

(C) by 1998 (when model year 1999 begins) orthe date specified by the Secretary in suchrule for initiating a fleet requirement pro-gram—

(i) there exists sufficient evidence to en-sure that the fuel and the needed infrastruc-ture, including the supply and deliverabilitysystems, will be installed and located at con-venient places in the fleet areas subject tothe rule and will be fully operational whenthe rule is effective to offer a reliable andtimely supply of the applicable alternativefuel at reasonable costs (as compared to con-ventional fuels) to meet the fleet require-ment program, as demonstrated through useof the provisions of section 505(1) of this titleregarding voluntary commitments or otheradequate, reliable, and convincing forms ofagreements, arrangements, or representa-tions that such fuels and infrastructure arein existence or will exist when the rule is ef-fective and will be expanded as the percent-ages increase annually;

(ii) there will be a sufficient number of newalternative fueled vehicles from originalequipment manufacturers that comply withall applicable requirements of the Clean AirAct and the National Traffic and Motor Ve-hicle Safety Act of 1966;

(iii) such new vehicles will meet the appli-cable non-Federal and non-State fleet per-formance requirements of such fleets (in-cluding range, passenger or cargo-carryingcapacity, reliability, refueling capability, ve-hicle mix, and economical operation andmaintenance); and

(iv) establishment of a fleet requirementprogram by rule under this subsection willnot result in unfair competitive advantagesor disadvantages, or result in undue eco-nomic hardship, to the affected fleets.

(2) The Secretary shall not promulgate arule under this subsection if he is unable tomake affirmative findings in the case of eachof the subparagraphs under paragraph (1),and each of the clauses under subparagraph(C) of paragraph (1).

(3) If the Secretary does not determinethat such program is necessary under thissubsection, the provisions of subsection (e)shall apply to the consideration in the futureof any fleet requirement program. Therecord of this rulemaking, including the Sec-retary’s findings, shall be incorporated intoa rulemaking under that subsection. If theSecretary determines under this subsectionthat such program is necessary, the Sec-retary shall not initiate the later rule-making under subsection (e).

(c) ADVANCE NOTICE OF PROPOSED RULE-MAKING.—Not later than April 1, 1998, theSecretary shall publish an advance notice ofproposed rulemaking for the purpose of—

(1) evaluating the progress toward achiev-ing the goals of replacement fuel use de-scribed in section 502(b)(2), as modified undersection 504;

(2) identifying the problems associatedwith achieving those goals;

(3) assessing the adequacy and practicabil-ity of those goals; and

(4) considering all actions needed toachieve those goals.The Secretary shall provide for at least 3 re-gional hearings on the advance notice of pro-posed rulemaking, with respect to which offi-cial transcripts shall be maintained. Thecomment period in connection with such ad-vance notice of proposed rulemaking shall becompleted within 7 months after publicationof the advance notice.

(d) PROPOSED RULE.—Before May 1, 1999,the Secretary shall publish in the FederalRegister a proposed rule for the rule requiredunder subsection (g), and shall provide for apublic comment period, with hearings, of notless than 90 days.

(e) DETERMINATION.—(1) Not later thanJanuary 1, 2000, the Secretary shall, throughthe rule required under subsection (g), deter-mine whether a fleet requirement program isnecessary under this section. Such a pro-gram shall be considered necessary and arule therefor shall be promulgated if the Sec-retary finds that—

(A) the goal of replacement fuel use de-scribed in section 502(b)(2)(B), as modifiedunder section 504, is not expected to be actu-ally achieved by 2010, or such other date as isestablished under section 504, by voluntarymeans or pursuant to this title or any otherlaw without such a fleet requirement pro-gram, taking into consideration the status ofthe achievement of the interim goal de-scribed in section 502(b)(2)(A), as modifiedunder section 504; and

(B) such goal is practicable and actuallyachievable within periods specified in section502(b)(2), as modified under section 504,through implementation of such a fleet re-quirement program in combination with vol-untary means and the application of otherprograms relevant to achieving such goals.

(2) The rule under subsection (b) or (g)shall also modify the goal described in sec-tion 502(b)(2)(B) and establish a revised goalpursuant to section 504 if the Secretary de-termines, based on the proceeding requiredunder subsection (a) or (c), that the goal ineffect at the time of that proceeding is inad-equate or impracticable, and not expected tobe achievable. Such goal as modified and es-tablished shall be applicable in making thefindings described in paragraph (1). If theSecretary modifies the goal under this para-graph, he may also modify the percentagesstated in subsection (a)(1) or (g)(1) and theminimum percentage stated in subsection(a)(2) or (g)(2) shall be not less than 10 per-cent.

(f) EXPLANATION OF DETERMINATION THATFLEET REQUIREMENT PROGRAM IS NOT NEC-ESSARY.—If the Secretary determines, basedon findings under subsection (b) or (e), thata fleet requirement program under this sec-tion is not necessary, the Secretary shall—

(1) by December 15, 1996, with respect to arulemaking under subsection (b); and

(2) by January 1, 2000, with respect to arulemaking under subsection (e),publish such determination in the FederalRegister as a final agency action, includingan explanation of the findings on which suchdetermination is made and the basis for thedetermination.

(g) FLEET REQUIREMENT PROGRAM.—(1) Ifthe Secretary determines under subsection(e) that a fleet requirement program is nec-essary, the Secretary shall, by January 1,2000, by rule require that, except as providedin paragraph (2), of the total number of newlight duty motor vehicles acquired for afleet, other than a Federal fleet, State fleet,or fleet owned, operated, leased, or otherwisecontrolled by a covered person under section501—

(A) 20 percent of the motor vehicles ac-quired in model year 2002;


(C) 60 percent of the motor vehicles ac-quired in model year 2004; and

(D) 70 percent of the motor vehicles ac-quired in model year 2005 and thereafter,shall be alternative fueled vehicles.

(2) The Secretary may not establish per-centage requirements higher than those de-scribed in paragraph (1). The Secretary may,if appropriate, and pursuant to a rule undersubsection (g), establish a lesser percentagerequirement for any model year. The Sec-retary may, by rule, establish a date laterthan 2002 (when model year 2003 begins) forinitiating the fleet requirements under para-graph (1).

(3) Nothing in this title shall be construedas requiring any fleet to acquire alternativefueled vehicles or alternative fuels that donot meet the normal business requirementsand practices and needs of that fleet.

(4) A vehicle operating only on gasolinethat complies with applicable requirementsof the Clean Air Act shall not be consideredan alternative fueled vehicle under sub-section (b) or this subsection, except thatthe Secretary, as part of the rule under sub-section (b) or this subsection, may determinethat such vehicle should be treated as an al-ternative fueled vehicle for purposes of thissection, for fleets subject to part C of title IIof the Clean Air Act, taking into consider-ation the impact on energy security and thegoals stated in section 502(a).

(h) EXTENSION OF DEADLINES.—The Sec-retary may, by notice published in the Fed-eral Register, extend the deadlines estab-lished under subsections (e), (f)(2), and (g) foran additional 90 days if the Secretary is un-able to meet such deadlines. Such extensionshall not be reviewable.

(i) EXEMPTIONS.—(1) A rule issued undersubsection (b), (g), or (o) shall provide for theprompt exemption by the Secretary, througha simple and reasonable process, of any fleetfrom the requirements of subsection (b), (g),or (o), in whole or in part, if it is dem-onstrated to the satisfaction of the Sec-retary that—

(A) alternative fueled vehicles that meetthe normal requirements and practices of theprincipal business of the fleet owner are notreasonably available for acquisition;

(B) alternative fuels that meet the normalrequirements and practices of the principalbusiness of the fleet owner are not availablein the area in which the vehicles are to beoperated; or

(C) in the case of State and local govern-ment entities, the application of such re-quirements would pose an unreasonable fi-nancial hardship.

(2) In the case of private fleets, if themotor vehicles, when under normal oper-ations, are garaged at personal residences atnight, such motor vehicles shall be exemptfrom the requirements of subsections (b) and(g).

(j) CONVERSIONS.—Nothing in this title orthe amendments made by this title shall re-quire a fleet owner to acquire conversion ve-hicles.

(k) INCLUSION OF LAW ENFORCEMENT VEHI-CLES AND URBAN BUSES.—(1) If the Secretarydetermines, by rule, that the inclusion offleets of law enforcement motor vehicles inthe fleet requirement program establishedunder subsection (g) would contribute toachieving the goal described in section502(b)(2)(B), as modified under section 504,and the Secretary finds that such inclusionwould not hinder the use of the motor vehi-cles for law enforcement purposes, the Sec-retary may include such fleets in such pro-gram. The Secretary may only initiate onerulemaking under this paragraph.

(2) If the Secretary determines, by rule,that the inclusion of new urban buses, as de-


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1992 T121.25fined by the Administrator under title II ofthe Clean Air Act, in a fleet requirementprogram established under subsection (g)would contribute to achieving the goal de-scribed in section 502(b)(2)(B), as modifiedunder section 504, the Secretary may includesuch urban buses in such program, if the Sec-retary finds that such application will beconsistent with energy security goals andthe needs and objectives of encouraging andfacilitating the greater use of such urbanbuses by the public, taking into consider-ation the impact of such application on pub-lic transit entities. The Secretary may onlyinitiate one rulemaking under this para-graph.

(3) Rulemakings under paragraph (1) or (2)shall be separate from a rulemaking undersubsection (g), but may not occur unless arulemaking is carried out under subsection(g).

(l) CONSIDERATION OF FACTORS.—In carry-ing out this section, the Secretary shall takeinto consideration energy security, costs,safety, lead time requirements, vehicle milestraveled annually, effect on greenhousegases, technological feasibility, energy re-quirements, economic impacts, including im-pacts on workers and the impact on consum-ers (including users of the alternative fuelfor purposes such as for residences, agri-culture, process use, and non-fuel purposes)and fleets, the availability of alternativefuels and alternative fueled vehicles, andother relevant factors.

(m) CONSULTATION AND PARTICIPATION OFOTHER FEDERAL AGENCIES.—In carrying outthis section and section 506, the Secretaryshall consult with the Secretary of Transpor-tation, the Administrator, and other appro-priate Federal agencies. The Secretary shallprovide for the participation of the Sec-retary of Transportation and the Adminis-trator in the development and issuance ofthe rule under this section, including thepublic process concerning such rule.

(n) PETITIONS.—As part of the rule promul-gated either pursuant to subsection (b) or (g)of this section, the Secretary shall establishprocedures for any fleet owner or operator ormotor vehicle manufacturer to request thatthe Secretary modify or suspend a fleet re-quirement program established under eithersubsection nationally, by region, or in an ap-plicable fleet area because, as demonstratedby the petitioner, the infrastructure or fuelsupply or distribution system for an applica-ble alternative fuel is inadequate to meetthe needs of a fleet. In the event that theSecretary determines that a modification orsuspension of the fleet requirement programon a regional basis would detract from thenationwide character of any fleet require-ment program established by rule or wouldsufficiently diminish the economies of scalefor the production of alternative fueled vehi-cles or alternative fuels and thereafter thepracticability and effectiveness of such pro-gram, the Secretary may only modify or sus-pend the program nationally. The proceduresshall include provisions for notice and publichearings. The Secretary shall deny or grantthe petition within 180 days after filing.

(o) MANDATORY STATE FLEET PROGRAMS.—(1) Pursuant to a rule promulgated by theSecretary, beginning in calendar year 1995(when model year 1996 begins), the followingpercentages of new light duty motor vehiclesacquired annually for State governmentfleets, including agencies thereof, but notmunicipal fleets, shall be alternative fueledvehicles:

(A) 10 percent of the motor vehicles ac-quired in model year 1996;


(C) 25 percent of the motor vehicles ac-quired in model year 1998;

(D) 50 percent of the motor vehicles ac-quired in model year 1999;

(E) 75 percent of the motor vehicles ac-quired in model year 2000 and thereafter.

(2)(A) The Secretary shall within 18months after the date of the enactment ofthis Act promulgate a rule providing that aState may submit a plan within 12 monthsafter such promulgation containing a lightduty alternative fueled vehicle plan forState fleets to meet the annual percentagesestablished under paragraph (1) for the ac-quisition of light duty motor vehicles. Theplan shall provide for the voluntary conver-sion or acquisition or combination thereof,beyond any acquisition required by thistitle, of such motor vehicles by State, local,or private fleets, in numbers greater than orequal to the number of State alternativefueled vehicles required pursuant to para-graph (1).

(B) The plan, if approved by the Secretary,would be in lieu of the State meeting suchannual percentages solely through purchasesof new State-owned vehicles. All conversionsor acquisitions or combinations thereof ofany alternative fueled vehicles under theplan must be voluntary and must conformwith the requirements of section 247 of theClean Air Act and must comply with applica-ble safety requirements. The Secretary ofTransportation shall within 3 years after en-actment promulgate rules setting forth safe-ty standards in accordance with the NationalTraffic and Motor Vehicle Safety Act of 1966applicable to all conversions.SEC. 508. CREDITS.

(a) IN GENERAL.—The Secretary shall allo-cate a credit to a fleet or covered person thatis required to acquire an alternative fueledvehicle under this title, if that fleet or per-son acquires an alternative fueled vehicle inexcess of the number that fleet or person isrequired to acquire under this title or ac-quires an alternative fueled vehicle beforethe date that fleet or person is required toacquire an alternative fueled vehicle undersuch title.

(b) ALLOCATION.—In allocating creditsunder subsection (a), the Secretary shall al-locate one credit for each alternative fueledvehicle the fleet or covered person acquiresthat exceeds the number of alternativefueled vehicles that fleet or person is re-quired to acquire under this title or that isacquired before the date that fleet or personis required to acquire an alternative fueledvehicle under such title. In the event that avehicle is acquired before the date otherwiserequired, the Secretary shall allocate onecredit per vehicle for each year the vehicle isacquired before the required date. The creditshall be allocated for the same type vehicleas the excess vehicle or earlier acquired ve-hicle.

(c) USE OF CREDITS.—At the request of afleet or covered person allocated a creditunder this section, the Secretary shall treatthe credit as the acquisition of one alter-native fueled vehicle of the type for whichthe credit is allocated in the year designatedby that fleet or person when determiningwhether that fleet or person has compliedwith this title in the year designated. Acredit may be counted toward compliance foronly one year.

(d) TRANSFERABILITY.—A fleet or coveredperson allocated a credit under this sectionor to whom a credit is transferred under thissection, may transfer freely the credit to an-other fleet or person who is required to com-ply with this title. At the request of the fleetor person to whom a credit is transferred,the Secretary shall treat the transferredcredit as the acquisition of one alternativefueled vehicle of the type for which the cred-it is allocated in the year designated by thefleet or person to whom the credit is trans-ferred when determining whether that fleetor person has complied with this title in the

year designated. A transferred credit may becounted toward compliance for only oneyear. In the case of the alternative fuel pro-vider program under section 501, a trans-ferred credit may be counted toward compli-ance only if the requirement of section501(a)(4) is met.SEC. 509. SECRETARY’S RECOMMENDATIONS TO

CONGRESS.

(a) RECOMMENDATIONS TO REQUIRE AVAIL-ABILITY OR ACQUISITION.—If the Secretary de-termines, under section 507(f), that a fleet re-quirement program under section 507 is notnecessary, the Secretary shall so notify theCongress. If the Secretary so notifies theCongress, the Secretary shall, within 2 yearsafter such notification and by rule, prepareand submit to the Congress recommenda-tions for requirements or incentives for—

(1) fuel suppliers to make available to thepublic replacement fuels, including providingfor the construction or availability of relat-ed fuel delivery systems;

(2) suppliers of alternative fueled vehiclesto make available to the public alternativefueled vehicles and to ensure the availabilityof necessary related services; and

(3) motor vehicle drivers to use replace-ment fuels,

to the extent necessary to achieve such goalsof replacement fuel use and to ensure thatthe availability of alternative fuels and ofalternative fueled vehicles are consistentwith each other.

(b) FAIR AND EQUITABLE APPLICATION.—Incarrying out this section, the Secretary shallrecommend the imposition of requirementsproportionately on all appropriate fuel sup-pliers and purchasers of motor fuels and sup-pliers and purchasers of motor vehicles in afair and equitable manner.SEC. 510. EFFECT ON OTHER LAWS.

(a) IN GENERAL.—Nothing in this Act orthe amendments made by this Act shall beconstrued to alter, affect, or modify the pro-visions of the Clean Air Act, or regulationsissued thereunder.

(b) COMPLIANCE BY ALTERNATIVE FUELEDVEHICLES.—Alternative fueled vehicles,whether dedicated vehicles or dual fueled ve-hicles, and the alternative fuels for operat-ing such vehicles, shall comply with require-ments of the Clean Air Act applicable tosuch vehicles and fuels.SEC. 511. PROHIBITED ACTS.

It shall be unlawful for any person to vio-late any provision of section 501, 503(b), or507, or any regulation issued under such sec-tions.SEC. 512. ENFORCEMENT.

(a) Whoever violates section 511 shall besubject to a civil penalty of not more than$5,000 for each violation.

(b) Whoever willfully violates section 511shall be fined not more than $10,000 for eachviolation.

(c) Any person who knowingly and will-fully violates section 511 after having beensubjected to a civil penalty for a prior viola-tion of section 511 shall be fined not morethan $50,000.SEC. 513. POWERS OF THE SECRETARY.

For the purpose of carrying out title III,title IV, this title, and title VI, the Sec-retary, or the duly designated agent of theSecretary, may hold such hearings, takesuch testimony, sit and act at such timesand places, administer such oaths, and re-quire, by subpena, the attendance and testi-mony of such witnesses and the productionof such books, papers, correspondence, mem-orandums, contracts, agreements, or otherrecords as the Secretary of Transportation isauthorized to do under section 505(b)(1) ofthe Motor Vehicle Information and Cost Sav-ings Act (15 U.S.C. 2005(b)(1)).

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OCTOBER 5T121.25SEC. 514. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for carrying out this title$10,000,000 for each of the fiscal years 1993through 1997, and such sums as may be nec-essary for fiscal years 1998 through 2000.

TITLE VI—ELECTRIC MOTOR VEHICLESSEC. 601. DEFINITIONS.

For the purposes of this title—(1) the term ‘‘antitrust laws’’ means the

Acts set forth in section 1 of the Clayton Act(15 U.S.C. 12);

(2) the term ‘‘associated equipment’’ meansequipment necessary for the regeneration,refueling, or recharging of batteries or otherforms of electric energy used to power anelectric motor vehicle and, in the case ofelectric-hybrid vehicles, such term includesnonpetroleum-related equipment necessaryfor, and solely related to, the demonstrationof such vehicles;

(3) the term ‘‘discount payment’’ meansthe amount determined pursuant to section613 of this title;

(4) the term ‘‘electric motor vehicle’’means a motor vehicle primarily powered byan electric motor that draws current fromrechargeable storage batteries, fuel cells,photovoltaic arrays, or other sources of elec-tric current and may include an electric-hy-brid vehicle;

(5) the term ‘‘electric-hybrid vehicle’’means a vehicle primarily powered by anelectric motor that draws current from re-chargeable storage batteries, fuel cells, orother source of electric current and also re-lies on a non-electric source of power;

(6) the term ‘‘eligible metropolitan area’’means any Metropolitan Area (as such termis defined by the Office of Management andBudget pursuant to section 3504 of title 44,United States Code) with a 1980 population of250,000 or more that has been designated by aproposer and the Secretary for a demonstra-tion project under this title, except that theSecretary may designate an area with a 1990population of 50,000 or more as an eligiblemetropolitan area;

(7) the term ‘‘infrastructure and supportsystems’’ includes support and maintenanceservices and facilities, electricity deliverymechanisms and methods, regulatory treat-ment of investment in electric motor vehi-cles and associated equipment, consumereducation programs, safety and health proce-dures, and battery availability, replacement,recycling, and disposal, that may be requiredto enable electric utilities, manufacturers,and others to support the operation andmaintenance of electric motor vehicles andassociated equipment;

(8) the term ‘‘motor vehicle’’ has the mean-ing given such term under section 216(2) ofthe Clean Air Act (42 U.S.C. 7550(2));

(9) the term ‘‘non-Federal person’’ meansan entity not part of the Federal Govern-ment that is either—

(A) organized under the laws of the UnitedStates or the laws of a State of the UnitedStates; or

(B) a unit of State or local government;(10) the term ‘‘proposer’’ means a non-Fed-

eral person that submits a proposal to con-duct a demonstration project under thistitle;

(11) the term ‘‘price differential’’ means—(A) in the case of a purchased electric

motor vehicle, the difference between themanufacturer’s suggested retail price of suchelectric motor vehicle and the manufactur-er’s suggested retail price of a comparableconventionally fueled motor vehicle; and

(B) in the case of a leased electric motorvehicle, the difference between the monthlylease payment of such electric motor vehicleover the life of the lease and the monthlylease payment of a comparable convention-ally fueled motor vehicle over the life of thelease; and

(12) the term ‘‘user’’ means a person or en-tity that purchases or leases an electricmotor vehicle.

Subtitle A—Electric Motor VehicleCommercial Demonstration Program

SEC. 611. PROGRAM AND SOLICITATION.(a) PROGRAM.—The Secretary shall conduct

a program to demonstrate electric motor ve-hicles and the associated equipment of suchvehicles, in consultation with the Electricand Hybrid Vehicle Program Site Operators,manufacturers, the electric utility industry,and such other persons as the Secretary con-siders appropriate. Such program shall be—

(1) designed to accelerate the developmentand use of electric motor vehicles; and

(2) structured to evaluate the performanceof such electric motor vehicles in field oper-ation, including fleet operation, and evalu-ate the necessary supporting infrastructure.

(b) SOLICITATION.—(1) Not later than 18months after the date of enactment of thisAct, the Secretary shall solicit proposals todemonstrate electric motor vehicles and as-sociated equipment in one or more eligiblemetropolitan areas. The Secretary maymake additional solicitations for proposals ifthe Secretary determines that such solicita-tions are necessary to carry out this sub-title.

(2)(A) Solicitations for proposals under thissubsection shall require the proposer to in-clude a description, including the manufac-turer or manufacturers of the electric motorvehicles; the proposed users of the electricmotor vehicles; the eligible metropolitanarea or areas involved; the number of elec-tric motor vehicles to be demonstrated andtheir type, characteristics, and life-cyclecosts; the price differential; the proposed dis-count payment; the contributions of State orlocal governments and other persons to thedemonstration project; the type of associ-ated equipment to be demonstrated; the do-mestic content of the electric motor vehiclesand associated equipment; and any other in-formation the Secretary considers appro-priate.

(B) If the proposal includes a lease arrange-ment, the proposal shall indicate the termsof such lease arrangement for the electricmotor vehicles or associated equipment.

(3) The solicitation for proposals under thissubsection shall establish a closing date forreceipt of proposals. The Secretary may, ifnecessary, extend the closing date for receiptof proposals for a period not to exceed 90days.SEC. 612. SELECTION OF PROPOSALS.

(a) SELECTION.—(1) The Secretary, in con-sultation with the Secretary of Transpor-tation, the Secretary of Commerce, and theAdministrator of the Environmental Protec-tion Agency, shall, not later than 120 daysafter the closing date, as established by theSecretary, for receipt of proposals under sec-tion 611, select at least one, but not morethan 10, proposals to receive financial assist-ance under section 613.

(2) The Secretary may select more than 10proposals under this section, if the Secretarydetermines that the total amount of avail-able funds is not likely to be otherwise uti-lized.

(3) Any proposal selected under paragraph(1) must satisfy the limitations set forth insection 613(c).

(4) No one project selected under this sec-tion shall receive more than 25 percent of thefunds authorized under section 616.

(5) A demonstration project may not in-clude electric motor vehicles in more thanone eligible metropolitan area, unless thetotal number of electric motor vehicles inthat project is equal to, or greater than, 100.

(b) CRITERIA.—In selecting a proposal andin negotiating financial assistance underthis section, the Secretary shall consider—

(1) the ability of the manufacturer, di-rectly, indirectly, or in combination withthe proposer, to develop, assist in the dem-onstration of, manufacture, distribute, sell,provide warranties for, service, and ensurethe continued availability of parts for, elec-tric motor vehicles in the demonstrationproject;

(2) the geographic and climatic diversity ofthe eligible metropolitan area or areas inwhich the demonstration project is to be un-dertaken, when considered in combinationwith other proposals and other selected dem-onstration projects;

(3) the long-term technical and competi-tive viability of the electric motor vehicles;

(4) the suitability of the electric motor ve-hicles for their intended uses;

(5) the environmental effects of the use ofthe proposed electric motor vehicles;

(6) the price differential and the proposeddiscount payment;

(7) the extent of involvement of State orlocal government and other persons in thedemonstration project, and whether such in-volvement will—

(A) permit a reduction of the Federal costshare per vehicle; or

(B) otherwise be used to allow the Federalcontribution to be provided for a greaternumber of electric motor vehicles;

(8) the proportion of domestic content ofthe electric motor vehicles and associatedequipment;

(9) the safety of the electric motor vehi-cles; and

(10) such other criteria as the Secretaryconsiders appropriate.

(c) CONDITIONS.—The Secretary shall re-quire that—

(1) as a part of a demonstration project,the user or users of the electric motor vehi-cles will provide to the proposer and themanufacturer information regarding the op-eration, maintenance, performance, and useof the electric motor vehicles for 5 yearsafter the beginning of the demonstrationproject;

(2) the proposer shall provide to the Sec-retary such information regarding the oper-ation, maintenance, performance, and use ofthe electric motor vehicles as the Secretarymay request during the period of the dem-onstration project;

(3) in the case of a demonstration projectincluding automobiles or light duty trucks,the number of electric motor vehicles to beincluded in the demonstration project shallbe no less than 50, except that the Secretarymay select a demonstration project withfewer than 50 electric motor vehicles if theSecretary determines that selection of sucha proposal will ensure that there is geo-graphic or climatic diversity among the pro-posals selected and that an adequate dem-onstration to accelerate the developmentand use of electric motor vehicles can be un-dertaken with fewer than 50 electric motorvehicles; and

(4) the procurement practices of the manu-facturer do not discriminate against UnitedStates producers of vehicle parts.

SEC. 613. DISCOUNT PAYMENTS.

(a) CERTIFICATION.—The Secretary shallprovide a discount payment to a proposer ofa proposal selected under this subtitle forpurposes of reimbursing the proposer for adiscount provided to the users if the proposercertifies to the Secretary that—

(1) the electric motor vehicles have beenpurchased or leased by a user or users in ac-cordance with the requirements of this sub-title; and

(2) the proposer has provided to the user orusers a discount payment in accordance withthe requirements of this subtitle.


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1992 T121.25(b) PAYMENT.—Not later than 30 days after

receipt from the proposer of certificationthat the Secretary determines satisfies therequirements of subsection (a), the Secretaryshall pay to the proposer the full amount ofthe discount payment, to the extent providedin advance in appropriations Acts.

(c) CALCULATIONS OF DISCOUNT PAY-MENTS.—(1) The discount payment shall beno greater than—

(A) the price differential; or(B) the price of the comparable conven-

tionally fueled motor vehicle.(2) The purchase price of the electric motor

vehicle, less the discount payment and lessany additional reduction in the purchaseprice of the electric motor vehicle that mayresult from contributions provided by otherparties, may not be less than the manufac-turer’s suggested retail price of a com-parable conventionally fueled motor vehicle.

(3) The maximum discount payment shallbe no greater than $10,000 per electric motorvehicle.SEC. 614. COST-SHARING.

(a) REQUIREMENT.—The Secretary shall re-quire at least 50 percent of the costs directlyand specifically related to any project underthis subtitle to be from non-Federal sources.Such share may be in the form of cash, per-sonnel, services, equipment, and other re-sources.

(b) REDUCTION.—The Secretary may reducethe amount of costs required to be providedby non-Federal sources under subsection (a)if the Secretary determines that the reduc-tion is necessary and appropriate—

(1) considering the technological risks in-volved in the project; and

(2) in order to meet the objectives of thissubtitle.SEC. 615. REPORTS TO CONGRESS.

(a) PROGRESS REPORTS.—The Secretaryshall report annually to Congress on theprogress being made, through demonstrationprojects supported under this subtitle, to ac-celerate the development and use of electricmotor vehicles.

(b) REPORT ON ENCOURAGING THE PURCHASEAND USE OF ELECTRIC MOTOR VEHICLES.—Within 18 months after the date of enact-ment of this Act, the Secretary shall submitto the Congress a report on methods for en-couraging the purchase and use of electricmotor vehicles. Such report shall—

(1) address the potential cost of purchasingand maintaining electric motor vehicles, in-cluding the initial cost of the batteries andthe cost of replacement batteries;

(2) identify methods for reducing, subsidiz-ing, or sharing such costs; and

(3) include recommendations for legislativeand administrative measures to encouragethe purchase and use of electric motor vehi-cles.SEC. 616. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for purposes of this subtitle$50,000,000 for the 10-year period beginningwith the first full fiscal year after the dateof enactment of this Act, to remain availableuntil expended.Subtitle B—Electric Motor Vehicle Infra-

structure and Support Systems Develop-ment Program

SEC. 621. GENERAL AUTHORITY.(a) PROGRAM.—The Secretary shall under-

take a program with one or more non-Fed-eral persons, including fleet operators, forcost-shared research, development, dem-onstration, or commercial application of aninfrastructure and support systems program.

(b) ELIGIBILITY.—A non-Federal personshall be eligible to receive financial assist-ance under this subtitle only if such persondemonstrates, to the satisfaction of the Sec-retary, that the person will conduct a sub-

stantial portion of activities under theproject in the United States using domesticlabor and materials.

(c) COORDINATION.—Activities under thissubtitle shall be coordinated with activitiesunder subtitle A.SEC. 622. PROPOSALS.

(a) SOLICITATION.—Not later than one yearafter the date of enactment of this Act, theSecretary shall solicit proposals from non-Federal persons, including fleet operators,for projects under this subtitle. Within 240days after proposals have been solicited, theSecretary shall select proposals.

(b) CRITERIA.—(1) The Secretary shall pro-vide financial assistance to no more than 10projects under this subtitle, unless the Sec-retary determines that the total amount ofavailable funds is not likely to be otherwiseused.

(2) The proposals selected by the Secretaryshall, to the extent practicable, representgeographically and climatically diverse re-gions of the United States.

(3) The aggregate Federal financial assist-ance for each project under this subtitle maynot exceed $4,000,000.

(c) PROJECTS.—The infrastructure and sup-port systems programs for which projects areselected under this subtitle may address—

(1) the ability to service electric motor ve-hicles and to provide or service associatedequipment;

(2) the installation of charging facilities;(3) rates and cost recovery for electric util-

ities who invest in infrastructure capital-re-lated expenditures;

(4) the development of safety and healthprocedures and guidelines related to batterycharging, watering, and emissions;

(5) the conduct of information dissemina-tion programs; and

(6) such other subjects as the Secretaryconsiders necessary in order to address theinfrastructure and support systems neededto support the development and use of en-ergy storage technologies, including ad-vanced batteries, and the demonstration ofelectric motor vehicles.SEC. 623. PROTECTION OF PROPRIETARY INFOR-

MATION.(a) IN GENERAL.—In the case of activities,

including joint venture activities, under thistitle, and in the case of any existing or fu-ture activities, including joint venture ac-tivities, related primarily to battery tech-nology for electric motor vehicles underother provisions of law, where the knowledgeresulting from research and development ac-tivities conducted pursuant to such activi-ties, including joint venture activities, is forthe benefit of the participants (particularlydomestic companies) that provide financialresources to a project under this title, theSecretary, for a period of up to 5 years afterthe development of information that—

(1) results from research and developmentactivities conducted under this title; and

(2) would be a trade secret or commercialor financial information that is privileged orconfidential if the information had been ob-tained from a participant,shall, notwithstanding any other provisionof law, provide appropriate protectionsagainst the dissemination of such informa-tion to the public, and the provisions of sec-tion 1905 of title 18, United States Code, shallapply to such information. Nothing in thissubsection provides protections against thedissemination of such information to Con-gress.

(b) DEFINITION.—For purposes of subsection(a), the term ‘‘domestic companies’’ meansentities which are substantially involved inthe United States in the domestic productionof motor vehicles for sale in the UnitedStates and have a substantial percentage oftheir production facilities in the UnitedStates.

SEC. 624. COMPLIANCE WITH EXISTING LAW.Nothing in this title shall be deemed to

convey to any person, partnership, corpora-tion, or other entity, immunity from civil orcriminal liability under any antitrust law orto create defenses to actions under any anti-trust law.SEC. 625. ELECTRIC UTILITY PARTICIPATION

STUDY.The Secretary, in consultation with appro-

priate Federal agencies, representatives ofState regulatory commissions and electricutilities, and such other persons as the Sec-retary considers appropriate, shall under-take or cause to have undertaken a study todetermine the means by which electric utili-ties may invest in, own, sell, lease, service,or recharge batteries used to power electricmotor vehicles.SEC. 626. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for purposes of this subtitle$40,000,000 for the 5-year period beginningwith the first full fiscal year after the dateof enactment of this Act, to remain availableuntil expended.

TITLE VII—ELECTRICITYSubtitle A—Exempt Wholesale Generators

SEC. 711. PUBLIC UTILITY HOLDING COMPANYACT REFORM.

The Public Utility Holding Company Actof 1935 (15 U.S.C. 79 and following) is amend-ed by redesignating sections 32 and 33 as sec-tions 34 and 35 respectively and by addingthe following new section after section 31:‘‘SEC. 32. EXEMPT WHOLESALE GENERATORS.

‘‘(a) DEFINITIONS.—For purposes of this sec-tion—

‘‘(1) EXEMPT WHOLESALE GENERATOR.—Theterm ‘exempt wholesale generator’ meansany person determined by the Federal En-ergy Regulatory Commission to be engageddirectly, or indirectly through one or moreaffiliates as defined in section 2(a)(11)(B),and exclusively in the business of owning oroperating, or both owning and operating, allor part of one or more eligible facilities andselling electric energy at wholesale. No per-son shall be deemed to be an exempt whole-sale generator under this section unless suchperson has applied to the Federal EnergyRegulatory Commission for a determinationunder this paragraph. A person applying ingood faith for such a determination shall bedeemed an exempt wholesale generatorunder this section, with all of the exemp-tions provided by this section, until the Fed-eral Energy Regulatory Commission makessuch determination. The Federal EnergyRegulatory Commission shall make such de-termination within 60 days of its receipt ofsuch application and shall notify the Com-mission whenever a determination is madeunder this paragraph that any person is anexempt wholesale generator. Not later than12 months after the date of enactment of thissection, the Federal Energy RegulatoryCommission shall promulgate rules imple-menting the provisions of this paragraph.Applications for determination filed afterthe effective date of such rules shall be sub-ject thereto.

‘‘(2) ELIGIBLE FACILITY.—The term ‘eligiblefacility’ means a facility, wherever located,which is either—

‘‘(A) used for the generation of electric en-ergy exclusively for sale at wholesale, or

‘‘(B) used for the generation of electric en-ergy and leased to one or more public utilitycompanies; Provided, That any such leaseshall be treated as a sale of electric energyat wholesale for purposes of sections 205 and206 of the Federal Power Act.Such term shall not include any facility forwhich consent is required under subsection(c) if such consent has not been obtained.Such term includes interconnecting trans-

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OCTOBER 5T121.25mission facilities necessary to effect a saleof electric energy at wholesale. For purposesof this paragraph, the term ‘facility’ may in-clude a portion of a facility subject to thelimitations of subsection (d) and shall in-clude a facility the construction of whichhas not been commenced or completed.

‘‘(3) SALE OF ELECTRIC ENERGY AT WHOLE-SALE.—The term ‘sale of electric energy atwholesale’ shall have the same meaning asprovided in section 201(d) of the FederalPower Act (16 U.S.C. 824(d)).

‘‘(4) RETAIL RATES AND CHARGES.—The term‘retail rates and charges’ means rates andcharges for the sale of electric energy di-rectly to consumers.

‘‘(b) FOREIGN RETAIL SALES.—Notwith-standing paragraphs (1) and (2) of subsection(a), retail sales of electric energy producedby a facility located in a foreign countryshall not prevent such facility from being aneligible facility, or prevent a person owningor operating, or both owning and operating,such facility from being an exempt wholesalegenerator if none of the electric energy gen-erated by such facility is sold to consumersin the United States.

‘‘(c) STATE CONSENT FOR EXISTING RATE-BASED FACILITIES.—If a rate or charge for, orin connection with, the construction of a fa-cility, or for electric energy produced by afacility (other than any portion of a rate orcharge which represents recovery of the costof a wholesale rate or charge) was in effectunder the laws of any State as of the date ofenactment of this section, in order for the fa-cility to be considered an eligible facility,every State commission having jurisdictionover any such rate or charge must make aspecific determination that allowing such fa-cility to be an eligible facility (1) will benefitconsumers, (2) is in the public interest, and(3) does not violate State law; Provided, Thatin the case of such a rate or charge which isa rate or charge of an affiliate of a registeredholding company:

‘‘(A) such determination with respect tothe facility in question shall be requiredfrom every State commission having juris-diction over the retail rates and charges ofthe affiliates of such registered holding com-pany; and

‘‘(B) the approval of the Commission underthis Act shall not be required for the trans-fer of the facility to an exempt wholesalegenerator.

‘‘(d) HYBRIDS.—(1) No exempt wholesalegenerator may own or operate a portion ofany facility if any other portion of the facil-ity is owned or operated by an electric util-ity company that is an affiliate or associatecompany of such exempt wholesale genera-tor.

‘‘(2) ELIGIBLE FACILITY.—Notwithstandingparagraph (1), an exempt wholesale genera-tor may own or operate a portion of a facil-ity identified in paragraph (1) if such portionhas become an eligible facility as a result ofthe operation of subsection (c).

‘‘(e) EXEMPTION OF EWGS.—An exemptwholesale generator shall not be consideredan electric utility company under section2(a)(3) of this Act and, whether or not a sub-sidiary company, an affiliate, or an associatecompany of a holding company, an exemptwholesale generator shall be exempt from allprovisions of this Act.

‘‘(f) OWNERSHIP OF EWGS BY EXEMPT HOLD-ING COMPANIES.—Notwithstanding any provi-sion of this Act, a holding company that isexempt under section 3 of this Act shall bepermitted, without condition or limitationunder this Act, to acquire and maintain aninterest in the business of one or more ex-empt wholesale generators.

‘‘(g) OWNERSHIP OF EWGS BY REGISTEREDHOLDING COMPANIES.—Notwithstanding anyprovision of this Act and the Commission’sjurisdiction as provided under subsection (h)

of this section, a registered holding companyshall be permitted (without the need toapply for, or receive, approval from the Com-mission, and otherwise without conditionunder this Act) to acquire and hold the secu-rities, or an interest in the business, of oneor more exempt wholesale generators.

‘‘(h) FINANCING AND OTHER RELATIONSHIPSBETWEEN EWGS AND REGISTERED HOLDINGCOMPANIES.—The issuance of securities by aregistered holding company for purposes offinancing the acquisition of an exemptwholesale generator, the guarantee of securi-ties of an exempt wholesale generator by aregistered holding company, the enteringinto service, sales or construction contracts,and the creation or maintenance of anyother relationship in addition to that de-scribed in subsection (g) between an exemptwholesale generator and a registered holdingcompany, its affiliates and associate compa-nies, shall remain subject to the jurisdictionof the Commission under this Act: Provided,That—

‘‘(1) section 11 of this Act shall not pro-hibit the ownership of an interest in thebusiness of one or more exempt wholesalegenerators by a registered holding company(regardless of where facilities owned or oper-ated by such exempt wholesale generatorsare located), and such ownership by a reg-istered holding company shall be deemedconsistent with the operation of an inte-grated public utility system;

‘‘(2) the ownership of an interest in thebusiness of one or more exempt wholesalegenerators by a registered holding company(regardless of where facilities owned or oper-ated by such exempt wholesale generatorsare located) shall be considered as reason-ably incidental, or economically necessaryor appropriate, to the operations of an inte-grated public utility system;

‘‘(3) in determining whether to approve (A)the issue or sale of a security by a registeredholding company for purposes of financingthe acquisition of an exempt wholesale gen-erator, or (B) the guarantee of a security ofan exempt wholesale generator by a reg-istered holding company, the Commissionshall not make a finding that such securityis not reasonably adapted to the earningpower of such company or to the securitystructure of such company and other compa-nies in the same holding company system, orthat the circumstances are such as to con-stitute the making of such guarantee an im-proper risk for such company, unless theCommission first finds that the issue or saleof such security, or the making of the guar-antee, would have a substantial adverse im-pact on the financial integrity of the reg-istered holding company system;

‘‘(4) in determining whether to approve (A)the issue or sale of a security by a registeredholding company for purposes other than theacquisition of an exempt wholesale genera-tor, or (B) other transactions by such reg-istered holding company or by its subsidi-aries other than with respect to exemptwholesale generators, the Commission shallnot consider the effect of the capitalizationor earnings of any subsidiary which is an ex-empt wholesale generator upon the reg-istered holding company system, unless theapproval of the issue or sale or other trans-action, together with the effect of such cap-italization and earnings, would have a sub-stantial adverse impact on the financial in-tegrity of the registered holding companysystem;

‘‘(5) the Commission shall make its deci-sion under paragraph (3) to approve or dis-approve the issue or sale of a security or theguarantee of a security within 120 days of thefiling of a declaration concerning such issue,sale or guarantee; and

‘‘(6) the Commission shall promulgate reg-ulations with respect to the actions which

would be considered, for purposes of this sub-section, to have a substantial adverse impacton the financial integrity of the registeredholding company system; such regulationsshall ensure that the action has no adverseimpact on any utility subsidiary or its cus-tomers, or on the ability of State commis-sions to protect such subsidiary or cus-tomers, and shall take into account theamount and type of capital invested in ex-empt wholesale generators, the ratio of suchcapital to the total capital invested in util-ity operations, the availability of books andrecords, and the financial and operating ex-perience of the registered holding companyand the exempt wholesale generator; theCommission shall promulgate such regula-tions within 6 months after the enactment ofthis section; after such 6-month period theCommission shall not approve any actionsunder paragraph (3), (4) or (5) except in ac-cordance with such issued regulations.

‘‘(i) APPLICATION OF ACT TO OTHER ELIGIBLEFACILITIES.—In the case of any person en-gaged directly and exclusively in the busi-ness of owning or operating (or both owningand operating) all or part of one or more eli-gible facilities, an advisory letter issued bythe Commission staff under this Act afterthe date of enactment of this section, or anorder issued by the Commission under thisAct after the date of enactment of this sec-tion, shall not be required for the purpose, orhave the effect, of exempting such personfrom treatment as an electric utility com-pany under section 2(a)(3) or exempting suchperson from any provision of this Act.

‘‘(j) OWNERSHIP OF EXEMPT WHOLESALEGENERATORS AND QUALIFYING FACILITIES.—The ownership by a person of one or more ex-empt wholesale generators shall not result insuch person being considered as being pri-marily engaged in the generation or sale ofelectric power within the meaning of sec-tions 3(17)(C)(ii) and 3(18)(B)(ii) of the Fed-eral Power Act (16 U.S.C. 796 (17)(C)(ii) and796(18)(B)(ii)).

‘‘(k) PROTECTION AGAINST ABUSIVE AFFILI-ATE TRANSACTIONS.—

‘‘(1) PROHIBITION.—After the date of enact-ment of this section, an electric utility com-pany may not enter into a contract to pur-chase electric energy at wholesale from anexempt wholesale generator if the exemptwholesale generator is an affiliate or associ-ate company of the electric utility company.

‘‘(2) STATE AUTHORITY TO EXEMPT FROMPROHIBITION.—Notwithstanding paragraph(1), an electric utility company may enterinto a contract to purchase electric energyat wholesale from an exempt wholesale gen-erator that is an affiliate or associate com-pany of the electric utility company—

‘‘(A) if every State commission having ju-risdiction over the retail rates of such elec-tric utility company makes each of the fol-lowing specific determinations in advance ofthe electric utility company entering intosuch contract:

‘‘(i) A determination that such commissionhas sufficient regulatory authority, re-sources and access to books and records ofthe electric utility company and any rel-evant associate, affiliate or subsidiary com-pany to exercise its duties under this sub-paragraph.

‘‘(ii) A determination that the trans-action—

‘‘(I) will benefit consumers,‘‘(II) does not violate any State law (in-

cluding where applicable, least cost plan-ning),

‘‘(III) would not provide the exempt whole-sale generator any unfair competitive advan-tage by virtue of its affiliation or associationwith the electric utility company, and

‘‘(IV) is in the public interest; or


2627

1992 T121.25‘‘(B) if such electric utility company is not

subject to State commission retail rate regu-lation and the purchased electric energy:

‘‘(i) would not be resold to any affiliate orassociate company, or

‘‘(ii) the purchased electric energy wouldbe resold to an affiliate or associate com-pany and every State commission having ju-risdiction over the retail rates of such affili-ate or associate company makes each of thedeterminations provided under subparagraph(A), including the determination concerninga State commission’s duties.

‘‘(l) RECIPROCAL ARRANGEMENTS PROHIB-ITED.—Reciprocal arrangements among com-panies that are not affiliates or associatecompanies of each other that are enteredinto in order to avoid the provisions of thissection are prohibited.’’.SEC. 712. STATE CONSIDERATION OF THE EF-

FECTS OF POWER PURCHASES ONUTILITY COST OF CAPITAL; CONSID-ERATION OF THE EFFECTS OF LE-VERAGED CAPITAL STRUCTURES ONTHE RELIABILITY OF WHOLESALEPOWER SELLERS; AND CONSIDER-ATION OF ADEQUATE FUEL SUP-PLIES.

Section 111 of the Public Utility Regu-latory Policies Act of 1978 (16 U.S.C. 2601 andfollowing) is amended by inserting the fol-lowing new paragraph after paragraph (9):

‘‘(10) CONSIDERATION OF THE EFFECTS OFWHOLESALE POWER PURCHASES ON UTILITYCOST OF CAPITAL; EFFECTS OF LEVERAGEDCAPITAL STRUCTURES ON THE RELIABILITY OFWHOLESALE POWER SELLERS; AND ASSURANCEOF ADEQUATE FUEL SUPPLIES.—(A) To the ex-tent that a State regulatory authority re-quires or allows electric utilities for which ithas ratemaking authority to consider thepurchase of long-term wholesale power sup-plies as a means of meeting electric demand,such authority shall perform a general eval-uation of:

‘‘(i) the potential for increases or decreasesin the costs of capital for such utilities, andany resulting increases or decreases in theretail rates paid by electric consumers, thatmay result from purchases of long-termwholesale power supplies in lieu of the con-struction of new generation facilities bysuch utilities;

‘‘(ii) whether the use by exempt wholesalegenerators (as defined in section 32 of thePublic Utility Holding Company Act of 1935)of capital structures which employ propor-tionally greater amounts of debt than thecapital structures of such utilities threatensreliability or provides an unfair advantagefor exempt wholesale generators over suchutilities;

‘‘(iii) whether to implement procedures forthe advance approval or disapproval of thepurchase of a particular long-term wholesalepower supply; and

‘‘(iv) whether to require as a condition forthe approval of the purchase of power thatthere be reasonable assurances of fuel supplyadequacy.

‘‘(B) For purposes of implementing the pro-visions of this paragraph, any reference con-tained in this section to the date of enact-ment of the Public Utility Regulatory Poli-cies Act of 1978 shall be deemed to be a ref-erence to the date of enactment of this para-graph.

‘‘(C) Notwithstanding any other provisionof Federal law, nothing in this paragraphshall prevent a State regulatory authorityfrom taking such action, including actionwith respect to the allowable capital struc-ture of exempt wholesale generators, as suchState regulatory authority may determineto be in the public interest as a result of per-forming evaluations under the standards ofsubparagraph (A).

‘‘(D) Notwithstanding section 124 and para-graphs (1) and (2) of section 112(a), each State

regulatory authority shall consider andmake a determination concerning the stand-ards of subparagraph (A) in accordance withthe requirements of subsections (a) and (b) ofthis section, without regard to any proceed-ings commenced prior to the enactment ofthis paragraph.

‘‘(E) Notwithstanding subsections (b) and(c) of section 112, each State regulatory au-thority shall consider and make a deter-mination concerning whether it is appro-priate to implement the standards set out insubparagraph (A) not later than one yearafter the date of enactment of this para-graph.’’.SEC. 713. PUBLIC UTILITY HOLDING COMPANIES

TO OWN INTERESTS IN COGENERA-TION FACILITIES.

Public Law 99–186 (99 Stat. 1180, as amend-ed by Public Law 99–553, 100 Stat. 3087), isamended to read as follows:

‘‘SECTION 1. Notwithstanding section11(b)(1) of the Public Utility Holding Com-pany Act of 1935, a company registered undersaid Act, or a subsidiary company of suchregistered company, may acquire or retain,in any geographic area, an interest in anyqualifying cogeneration facilities and quali-fying small power production facilities as de-fined pursuant to the Public Utility Regu-latory Policies Act of 1978, and shall qualifyfor any exemption relating to the PublicUtility Holding Company Act of 1935 pre-scribed pursuant to section 210 of the PublicUtility Regulatory Policies Act of 1978.

‘‘SEC. 2. Nothing herein shall be construedto affect the applicability of section 3(17)(C)or section 3(18)(B) of the Federal Power Actor any provision of the Public Utility Hold-ing Company Act of 1935, other than section11(b)(1), to the acquisition or retention ofany such interest by any such company.’’.SEC. 714. BOOKS AND RECORDS.

Section 201 of the Federal Power Act isamended by adding the following new sub-section at the end thereof:

‘‘(g) BOOKS AND RECORDS.—(1) Upon writtenorder of a State commission, a State com-mission may examine the books, accounts,memoranda, contracts, and records of—

‘‘(A) an electric utility company subject toits regulatory authority under State law,

‘‘(B) any exempt wholesale generator sell-ing energy at wholesale to such electric util-ity, and

‘‘(C) any electric utility company, or hold-ing company thereof, which is an associatecompany or affiliate of an exempt wholesalegenerator which sells electric energy to anelectric utility company referred to in sub-paragraph (A),wherever located, if such examination is re-quired for the effective discharge of theState commission’s regulatory responsibil-ities affecting the provision of electric serv-ice.

‘‘(2) Where a State commission issues anorder pursuant to paragraph (1), the Statecommission shall not publicly disclose tradesecrets or sensitive commercial information.

‘‘(3) Any United States district court lo-cated in the State in which the State com-mission referred to in paragraph (1) is lo-cated shall have jurisdiction to enforce com-pliance with this subsection.

‘‘(4) Nothing in this section shall—‘‘(A) preempt applicable State law concern-

ing the provision of records and other infor-mation; or

‘‘(B) in any way limit rights to obtainrecords and other information under Federallaw, contracts, or otherwise.

‘‘(5) As used in this subsection the terms‘affiliate’, ‘associate company’, ‘electric util-ity company’, ‘holding company’, ‘subsidiarycompany’, and ‘exempt wholesale generator’shall have the same meaning as when used inthe Public Utility Holding Company Act of1935.’’.

SEC. 715. INVESTMENT IN FOREIGN UTILITIES.The Public Utility Holding Company Act

of 1935 (15 U.S.C. 79 et seq.) is amended by in-serting after section 32 the following newsection:‘‘SEC. 33. TREATMENT OF FOREIGN UTILITIES.

‘‘(a) EXEMPTIONS FOR FOREIGN UTILITYCOMPANIES.—

‘‘(1) IN GENERAL.—A foreign utility com-pany shall be exempt from all of the provi-sions of this Act, except as otherwise pro-vided under this section, and shall not, forany purpose under this Act, be deemed to bea public utility company under section2(a)(5), notwithstanding that the foreignutility company may be a subsidiary com-pany, an affiliate, or an associate companyof a holding company or of a public utilitycompany.

‘‘(2) STATE COMMISSION CERTIFICATION.—Section (a)(1) shall not apply or be effectiveunless every State commission having juris-diction over the retail electric or gas rates ofa public utility company that is an associatecompany or an affiliate of a company other-wise exempted under section (a)(1) (otherthan a public utility company that is an as-sociate company or an affiliate of a reg-istered holding company) has certified to theCommission that it has the authority and re-sources to protect ratepayers subject to itsjurisdiction and that it intends to exerciseits authority. Such certification, upon thefiling of a notice by such State commission,may be revised or withdrawn by the Statecommission prospectively as to any futureacquisition. The requirement of State cer-tification shall be deemed satisfied if the rel-evant State commission had, prior to thedate of enactment of this section, on thebasis of prescribed conditions of general ap-plicability, determined that ratepayers of apublic utility company are adequately insu-lated from the effects of diversification andthe diversification would not impair theability of the State commission to regulateeffectively the operations of such company.

‘‘(3) DEFINITION.—For purposes of this sec-tion, the term ‘foreign utility company’means any company that-

‘‘(A) owns or operates facilities that arenot located in any State and that are usedfor the generation, transmission, or distribu-tion of electric energy for sale or the dis-tribution at retail of natural or manufac-tured gas for heat, light, or power, if suchcompany-

‘‘(i) derives no part of its income, directlyor indirectly, from the generation, trans-mission, or distribution of electric energy forsale or the distribution at retail of naturalor manufactured gas for heat, light, orpower, within the United States; and

‘‘(ii) neither the company nor any of itssubsidiary companies is a public utility com-pany operating in the United States; and

‘‘(B) provides notice to the Commission, insuch form as the Commission may prescribe,that such company is a foreign utility com-pany.

‘‘(b) OWNERSHIP OF FOREIGN UTILITY COM-PANIES BY EXEMPT HOLDING COMPANIES.—Notwithstanding any provision of this Actexcept as provided under this section, a hold-ing company that is exempt under section 3of the Act shall be permitted without condi-tion or limitation under the Act to acquireand maintain an interest in the business ofone or more foreign utility companies.

‘‘(c) REGISTERED HOLDING COMPANIES.—‘‘(1) OWNERSHIP OF FOREIGN UTILITY COMPA-

NIES BY REGISTERED HOLDING COMPANIES.—Notwithstanding any provision of this Actexcept as otherwise provided under this sec-tion, a registered holding company shall bepermitted as of the date of enactment of thissection (without the need to apply for, or re-ceive approval from the Commission) to ac-

JOURNAL OF THE

2628

OCTOBER 5T121.25quire and and hold the securities or an inter-est in the business, of one or more foreignutility companies. The Commission shallpromulgate rules or regulations regardingregistered holding companies’ acquisition ofinterests in foreign utility companies whichshall provide for the protection of the cus-tomers of a public utility company which isan associate company of a foreign utilitycompany and the maintenance of the finan-cial integrity of the registered holding com-pany system.

‘‘(2) ISSUANCE OF SECURITIES.—The issuanceof securities by a registered holding com-pany for purposes of financing the acquisi-tion of a foreign utility company, the guar-antee of securities of a foreign utility com-pany by a registered holding company, theentering into service, sales, or constructioncontracts, and the creation or maintenanceof any other relationship between a foreignutility company and a registered holdingcompany, its affiliates and associate compa-nies, shall remain subject to the jurisdictionof the Commission under this Act (unlessotherwise exempted under this Act, in thecase of a transaction with an affiliate or as-sociate company located outside of theUnited States). Any State commission withjurisdiction over the retail rates of a publicutility company which is part of a registeredholding company system may make suchrecommendations to the Commission regard-ing the registered holding company’s rela-tionship to a foreign utility company, andthe Commision shall reasonably and fullyconsider such State recommendation.

‘‘(3) CONSTRUCTION.—Any interest in thebusiness of 1 or more foreign utility compa-nies, or 1 or more companies organized exclu-sively to own, directly or indirectly, the se-curities or other interest in a foreign utilitycompany, shall for all purposes of this Act,be considered to be—

‘‘(A) consistent with the operation of a sin-gle integrated public utility system, withinthe meaning of section 11; and

‘‘(B) reasonably incidental, or economi-cally necessary or appropriate, to the oper-ations of an integrated public utility system,within the meaning of section 11.

‘‘(d) EFFECT ON EXISTING LAW; NO STATEPREEMPTION.—Nothing in this section shall—

‘‘(1) preclude any person from qualifyingfor or maintaining any exemption otherwiseprovided for under this Act or the rules, reg-ulations, or orders promulgated or issuedunder this Act; or

‘‘(2) be deemed or construed to limit theauthority of any State (including any Stateregulatory authority) with respect to-

‘‘(A) any public utility company or holdingcompany subject to such State’s jurisdiction;or

‘‘(B) any transaction between any foreignutility company (or any affiliate or associatecompany thereof) and any public utilitycompany or holding company subject to suchState’s jurisdiction.

(e) REPORTING REQUIREMENTS.—‘‘(1) FILING OF REPORTS.—A public utility

company that is an associate company of aforeign utility company shall file with theCommission such reports (with respect tosuch foreign utility company) as the Com-mission may by rules, regulations, or orderprescribe as necessary or appropriate in thepublic interest or for the protection of inves-tors or consumers.

‘‘(2) NOTICE OF ACQUISITIONS.—Not laterthan 30 days after the consummation of theacquisition of an interest in a foreign utilitycompany by an associate company of a pub-lic utility company that is subject to the ju-risdiction of a State commission with re-spect to its retail electric or gas rates or bysuch public utility company, such associatecompany or such public utility company,shall provide notice of such acquisition to

every State commission having jurisdictionover the retail electric or gas rates of suchpublic utility company, in such form as maybe prescribed by the State commission.

‘‘(f) PROHIBITION ON ASSUMPTION OF LIABIL-ITIES.—

‘‘(1) IN GENERAL.—No public utility com-pany that is subject to the jurisdiction of aState commission with respect to its retailelectric or gas rates shall issue any securityfor the purpose of financing the acquisition,or for the purposes of financing the owner-ship or operation, of a foreign utility com-pany, nor shall any such public utility com-pany assume any obligation or liability asguarantor, endorser, surety, or otherwise inrespect of any security of a foreign utilitycompany.

‘‘(2) EXCEPTION FOR HOLDING COMPANIESWHICH ARE PREDOMINANTLY PUBLIC UTILITYCOMPANIES.—Subsection (f)(1) shall not applyif:

‘‘(A) the public utility company that issubject to the jurisdiction of a State com-mission with respect to its retail electric orgas rates is a holding company and is not anaffiliate under section 2(a)(11)(B) of anotherholding company or is not subject to regula-tion as a holding company and has no affili-ate as defined in section 2(a)(11)(A) that is apublic utility company subject to the juris-diction of a State commission with respectto its retail electric or gas rates; and

‘‘(B) each State commission having juris-diction with respect to the retail electric andgas rates of such public utility company ex-pressly permits such public utility to engagein a transaction otherwise prohibited undersection (f)(1); and

‘‘(C) the transaction (aggregated with allother then-outstanding transactions exempt-ed under this subsection) does not exceed 5per centum of the then-outstanding totalcapitalization of the public utility.

‘‘(g) PROHIBITION ON PLEDGING OR ENCUM-BERING UTILITY ASSETS.—No public utilitycompany that is subject to the jurisdictionof a State commission with respect to its re-tail electric or gas rates shall pledge or en-cumber any utility assets or utility assets ofany subsidiary thereof for the benefit of anassociate foreign utility company.’’.

Subtitle B—Federal Power Act; InterstateCommerce in Electricity

SEC. 721. AMENDMENTS TO SECTION 211 OF FED-ERAL POWER ACT.

Section 211 of the Federal Power Act (16U.S.C. 824j) is amended as follows:

(1) The first sentence of subsection (a) isamended to read as follows: ‘‘Any electricutility, Federal power marketing agency, orany other person generating electric energyfor sale for resale, may apply to the Commis-sion for an order under this subsection re-quiring a transmitting utility to providetransmission services (including any en-largement of transmission capacity nec-essary to provide such services) to the appli-cant.’’.

(2) In the second sentence of subsection (a),strike ‘‘the Commission may’’ and all thatfollows and insert ‘‘the Commission mayissue such order if it finds that such ordermeets the requirements of section 212, andwould otherwise be in the public interest. Noorder may be issued under this subsectionunless the applicant has made a request fortransmission services to the transmittingutility that would be the subject of suchorder at least 60 days prior to its filing of anapplication for such order.’’.

(3) Amend subsection (b) to read as follows:‘‘(b) RELIABILITY OF ELECTRIC SERVICE.—No

order may be issued under this section orsection 210 if, after giving consideration toconsistently applied regional or national re-liability standards, guidelines, or criteria,the Commission finds that such order would

unreasonably impair the continued reliabil-ity of electric systems affected by theorder.’’.

(4) In subsection (c)—(A) Strike out paragraph (1).(B) In paragraph (2) strike ‘‘which requires

the electric’’ and insert ‘‘which requires thetransmitting’’.

(C) Strike out paragraphs (3) and (4).(5) In subsection (d)—(A) In the first sentence of paragraph (1),

strike ‘‘electric’’ and insert ‘‘transmitting’’in each place it appears.

(B) In the second sentence of paragraph (1)before ‘‘and each affected electric utility,’’insert ‘‘each affected transmitting utility,’’.

(C) In paragraph (3), strike ‘‘electric’’ andinsert ‘‘transmitting’’.

(D) Strike the period in subparagraph (B)of paragraph (1) and insert ‘‘, or’’ and aftersubparagraph (B) insert the following newsubparagraph:

‘‘(C) the ordered transmission services re-quire enlargement of transmission capacityand the transmitting utility subject to theorder has failed, after making a good faitheffort, to obtain the necessary approvals orproperty rights under applicable Federal,State, and local laws.’’.SEC. 722. TRANSMISSION SERVICES.

Section 212 of the Federal Power Act isamended as follows:

(1) Strike subsections (a) and (b) and insertthe following:

‘‘(a) RATES, CHARGES, TERMS, AND CONDI-TIONS FOR WHOLESALE TRANSMISSION SERV-ICES.—An order under section 211 shall re-quire the transmitting utility subject to theorder to provide wholesale transmissionservices at rates, charges, terms, and condi-tions which permit the recovery by suchutility of all the costs incurred in connectionwith the transmission services and necessaryassociated services, including, but not lim-ited to, an appropriate share, if any, of le-gitimate, verifiable and economic costs, in-cluding taking into account any benefits tothe transmission system of providing thetransmission service, and the costs of anyenlargement of transmission facilities. Suchrates, charges, terms, and conditions shallpromote the economically efficient trans-mission and generation of electricity andshall be just and reasonable, and not undulydiscriminatory or preferential. Rates,charges, terms, and conditions for trans-mission services provided pursuant to anorder under section 211 shall ensure that, tothe extent practicable, costs incurred in pro-viding the wholesale transmission services,and properly allocable to the provision ofsuch services, are recovered from the appli-cant for such order and not from a transmit-ting utility’s existing wholesale, retail, andtransmission customers.’’.

(2) Subsection (e) is amended to read as fol-lows:

‘‘(e) SAVINGS PROVISIONS.—(1) No provisionof section 210, 211, 214, or this section shall betreated as requiring any person to utilize theauthority of any such section in lieu of anyother authority of law. Except as provided insection 210, 211, 214, or this section, such sec-tions shall not be construed as limiting orimpairing any authority of the Commissionunder any other provision of law.

‘‘(2) Sections 210, 211, 213, 214, and this sec-tion, shall not be construed to modify, im-pair, or supersede the antitrust laws. Forpurposes of this section, the term ‘antitrustlaws’ has the meaning given in subsection (a)of the first sentence of the Clayton Act, ex-cept that such term includes section 5 of theFederal Trade Commission Act to the extentthat such section relates to unfair methodsof competition.’’.

(3) Add the following new subsections atthe end thereof:


2629

1992 T121.25‘‘(g) PROHIBITION ON ORDERS INCONSISTENT

WITH RETAIL MARKETING AREAS.—No ordermay be issued under this Act which is incon-sistent with any State law which governs theretail marketing areas of electric utilities.

‘‘(h) PROHIBITION ON MANDATORY RETAILWHEELING AND SHAM WHOLESALE TRANS-ACTIONS.—No order issued under this Actshall be conditioned upon or require thetransmission of electric energy:

‘‘(1) directly to an ultimate consumer, or‘‘(2) to, or for the benefit of, an entity if

such electric energy would be sold by suchentity directly to an ultimate consumer, un-less:

‘‘(A) such entity is a Federal power mar-keting agency; the Tennessee Valley Author-ity; a State or any political subdivision of aState (or an agency, authority, or instru-mentality of a State or a political subdivi-sion); a corporation or association that hasever received a loan for the purposes of pro-viding electric service from the Adminis-trator of the Rural Electrification Adminis-tration under the Rural Electrification Actof 1936; a person having an obligation arisingunder State or local law (exclusive of an ob-ligation arising solely from a contract en-tered into by such person) to provide electricservice to the public; or any corporation orassociation which is wholly owned, directlyor indirectly, by any one or more of the fore-going; and

‘‘(B) such entity was providing electricservice to such ultimate consumer on thedate of enactment of this subsection orwould utilize transmission or distribution fa-cilities that it owns or controls to deliver allsuch electric energy to such electric con-sumer.Nothing in this subsection shall affect anyauthority of any State or local governmentunder State law concerning the transmissionof electric energy directly to an ultimateconsumer.’’.

‘‘(i) LAWS APPLICABLE TO FEDERAL COLUM-BIA RIVER TRANSMISSION SYSTEM.—(1) TheCommission shall have authority pursuantto section 210, section 211, this section, andsection 213 to (A) order the Administrator ofthe Bonneville Power Administration to pro-vide transmission service and (B) establishthe terms and conditions of such service. Inapplying such sections to the Federal Colum-bia River Transmission System, the Com-mission shall assure that—

‘‘(i) the provisions of otherwise applicableFederal laws shall continue in full force andeffect and shall continue to be applicable tothe system; and

‘‘(ii) the rates for the transmission of elec-tric power on the system shall be governedonly by such otherwise applicable provisionsof law and not by any provision of section210, section 211, this section, or section 213,except that no rate for the transmission ofpower on the system shall be unjust, unrea-sonable, or unduly discriminatory or pref-erential, as determined by the Commission.

‘‘(2) Notwithstanding any other provisionof this Act with respect to the procedures forthe determination of terms and conditionsfor transmission service—

‘‘(A) when the Administrator of the Bonne-ville Power Administration either (i) in re-sponse to a written request for specifictransmission service terms and conditionsdoes not offer the requested terms and condi-tions, or (ii) proposes to establish terms andconditions of general applicability for trans-mission service on the Federal ColumbiaRiver Transmission System, then the Ad-ministrator may provide opportunity for ahearing and, in so doing, shall—

‘‘(I) give notice in the Federal Register andstate in such notice the written explanationof the reasons why the specific terms andconditions for transmission services are notbeing offered or are being proposed;

‘‘(II) adhere to the procedural require-ments of paragraphs (1) through (3) of sec-tion 7(i) of the Pacific Northwest ElectricPower Planning and Conservation Act (16U.S.C. 839(i)(1) through (3)), except that thehearing officer shall, unless the hearing offi-cer becomes unavailable to the agency, makea recommended decision to the Adminis-trator that states the hearing officer’s find-ings and conclusions, and the reasons orbasis thereof, on all material issues of fact,law, or discretion presented on the record;and

‘‘(III) make a determination, setting forththe reasons for reaching any findings andconclusions which may differ from those ofthe hearing officer, based on the hearingrecord, consideration of the hearing officer’srecommended decision, section 211 and thissection, as amended by the Energy PolicyAct of 1992, and the provisions of law as pre-served in this section; and

‘‘(B) if application is made to the Commis-sion under section 211 for transmission serv-ice under terms and conditions differentthan those offered by the Administrator, orfollowing the denial of a request for trans-mission service by the Administrator, andsuch application is filed within 60 days of theAdministrator’s final determination and inaccordance with Commission procedures, theCommission shall—

‘‘(i) in the event the Administrator hasconducted a hearing as herein provided for(I) accord parties to the Administrator’shearing the opportunity to offer for the Com-mission record materials excluded by the Ad-ministrator from the hearing record, (II) ac-cord such parties the opportunity to submitfor the Commission record comments on ap-propriate terms and conditions, (III) affordthose parties the opportunity for a hearing ifand to the extent that the Commission findsthe Administrator’s hearing record to be in-adequate to support a decision by the Com-mission, and (IV) establish terms and condi-tions for or deny transmission service basedon the Administrator’s hearing record, theCommission record, section 211 and this sec-tion, as amended by the Energy Policy Actof 1992, and the provisions of law as pre-served in this section, or

‘‘(ii) in the event the Administrator hasnot conducted a hearing as herein providedfor, determine whether to issue an order fortransmission service in accordance with sec-tion 211 and this section, including providingthe opportunity for a hearing.

‘‘(3) Notwithstanding those provisions ofsection 313(b) of this Act (16 U.S.C. 825l)which designate the court in which reviewmay be obtained, any party to a proceedingconcerning transmission service sought to befurnished by the Administrator of the Bon-neville Power Administration seeking reviewof an order issued by the Commission in suchproceeding shall obtain a review of suchorder in the United States Court of Appealsfor the Pacific Northwest, as that region isdefined by section 3(14) of the Pacific North-west Electric Power Planning and Conserva-tion Act (16 U.S.C. 839a(14)).

‘‘(4) To the extent the Administrator of theBonneville Power Administration cannot berequired under section 211, as a result of theAdministrator’s other statutory mandates,either to (A) provide transmission service toan applicant which the Commission wouldotherwise order, or (B) provide such serviceunder rates, terms, and conditions which theCommission would otherwise require, the ap-plicant shall not be required to provide simi-lar transmission services to the Adminis-trator or to provide such services under simi-lar rates, terms, and conditions.

‘‘(5) The Commission shall not issue anyorder under section 210, section 211, this sec-tion, or section 213 requiring the Adminis-trator of the Bonneville Power Administra-

tion to provide transmission service if suchan order would impair the Administrator’sability to provide such transmission serviceto the Administrator’s power and trans-mission customers in the Pacific Northwest,as that region is defined in section 3(14) ofthe Pacific Northwest Electric Power Plan-ning and Conservation Act (16 U.S.C.839a(14)), as is needed to assure adequate andreliable service to loads in that region.

‘‘(j) EQUITABILITY WITHIN TERRITORY RE-STRICTED ELECTRIC SYSTEMS.—With respectto an electric utility which is prohibited byFederal law from being a source of powersupply, either directly or through a distribu-tor of its electric energy, outside an area setforth in such law, no order issued under sec-tion 211 may require such electric utility (ora distributor of such electric utility) to pro-vide transmission services to another entityif the electric energy to be transmitted willbe consumed within the area set forth insuch Federal law, unless the order is in fur-therance of a sale of electric energy to thatelectric utility: Provided, however, That theforegoing provision shall not apply to anyarea served at retail by an electric trans-mission system which was such a distributoron the date of enactment of this subsectionand which before October 1, 1991, gave its no-tice of termination under its power supplycontract with such electric utility.

‘‘(k) ERCOT UTILITIES.—‘‘(1) RATES.—Any order under section 211

requiring provision of transmission servicesin whole or in part within ERCOT shall pro-vide that any ERCOT utility which is not apublic utility and the transmission facilitiesof which are actually used for such trans-mission service is entitled to receive com-pensation based, insofar as practicable andconsistent with subsection (a), on the trans-mission ratemaking methodology used bythe Public Utility Commission of Texas.

‘‘(2) DEFINITIONS.—For purposes of this sub-section—

‘‘(A) the term ‘ERCOT’ means the ElectricReliability Council of Texas; and

‘‘(B) the term ‘ERCOT utility’ means atransmitting utility which is a member ofERCOT.’’.SEC. 723. INFORMATION REQUIREMENTS.

Part II of the Federal Power Act is amend-ed by adding the following new section aftersection 212:‘‘SEC. 213. INFORMATION REQUIREMENTS.

‘‘(a) REQUESTS FOR WHOLESALE TRANS-MISSION SERVICES.—Whenever any electricutility, Federal power marketing agency, orany other person generating electric energyfor sale for resale makes a good faith requestto a transmitting utility to provide whole-sale transmission services and requests spe-cific rates and charges, and other terms andconditions, unless the transmitting utilityagrees to provide such services at rates,charges, terms and conditions acceptable tosuch person, the transmitting utility shall,within 60 days of its receipt of the request, orother mutually agreed upon period, providesuch person with a detailed written expla-nation, with specific reference to the factsand circumstances of the request, stating (1)the transmitting utility’s basis for the pro-posed rates, charges, terms, and conditionsfor such services, and (2) its analysis of anyphysical or other constraints affecting theprovision of such services.

‘‘(b) TRANSMISSION CAPACITY AND CON-STRAINTS.—Not later than 1 year after theenactment of this section, the Commissionshall promulgate a rule requiring that infor-mation be submitted annually to the Com-mission by transmitting utilities which isadequate to inform potential transmissioncustomers, State regulatory authorities, andthe public of potentially available trans-mission capacity and known constraints.’’.

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OCTOBER 5T121.25SEC. 724. SALES BY EXEMPT WHOLESALE GEN-

ERATORS.Part II of the Federal Power Act is amend-

ed by adding the following new section aftersection 213:‘‘SEC. 214. SALES BY EXEMPT WHOLESALE GEN-

ERATORS.‘‘No rate or charge received by an exempt

wholesale generator for the sale of electricenergy shall be lawful under section 205 if,after notice and opportunity for hearing, theCommission finds that such rate or chargeresults from the receipt of any undue pref-erence or advantage from an electric utilitywhich is an associate company or an affiliateof the exempt wholesale generator. For pur-poses of this section, the terms ‘associatecompany’ and ‘affiliate’ shall have the samemeaning as provided in section 2(a) of thePublic Utility Holding Company Act of1935.’’.SEC. 725. PENALTIES.

(a) EXISTING PENALTIES NOT APPLICABLE TOTRANSMISSION PROVISIONS.—Sections 315 and316 of the Federal Power Act are eachamended by adding the following at the endthereof:

‘‘(c) This subsection shall not apply in thecase of any provision of section 211, 212, 213,or 214 or any rule or order issued under anysuch provision.’’.

(b) PENALTIES APPLICABLE TO TRANS-MISSION PROVISIONS.—Title III of the FederalPower Act is amended by inserting the fol-lowing new section after section 316:‘‘SEC. 316A. ENFORCEMENT OF CERTAIN PROVI-

SIONS.‘‘(a) VIOLATIONS.—It shall be unlawful for

any person to violate any provision of sec-tion 211, 212, 213, or 214 or any rule or orderissued under any such provision.

‘‘(b) CIVIL PENALTIES.—Any person whoviolates any provision of section 211, 212, 213,or 214 or any provision of any rule or orderthereunder shall be subject to a civil penaltyof not more than $10,000 for each day thatsuch violation continues. Such penalty shallbe assessed by the Commission, after noticeand opportunity for public hearing, in ac-cordance with the same provisions as are ap-plicable under section 31(d) in the case ofcivil penalties assessed under section 31. Indetermining the amount of a proposed pen-alty, the Commission shall take into consid-eration the seriousness of the violation andthe efforts of such person to remedy the vio-lation in a timely manner.’’.SEC. 726. DEFINITIONS.

(a) ADDITIONAL DEFINITIONS.—Section 3 ofthe Federal Power Act is amended by addingthe following at the end thereof:

‘‘(23) TRANSMITTING UTILITY.—The term‘transmitting utility’ means any electricutility, qualifying cogeneration facility,qualifying small power production facility,or Federal power marketing agency whichowns or operates electric power transmissionfacilities which are used for the sale of elec-tric energy at wholesale.

‘‘(24) WHOLESALE TRANSMISSION SERVICES.—The term ‘wholesale transmission services’means the transmission of electric energysold, or to be sold, at wholesale in interstatecommerce.

‘‘(25) EXEMPT WHOLESALE GENERATOR.—Theterm ‘exempt wholesale generator’ shallhave the meaning provided by section 32 ofthe Public Utility Holding Company Act of1935.’’.

(b) CLARIFICATION OF TERMS.—Section 3(22)of the Federal Power Act is amended by in-serting ‘‘(including any municipality)’’ after‘‘State agency’’.

Subtitle C—State and Local AuthoritiesSEC. 731. STATE AUTHORITIES.

Nothing in this title or in any amendmentmade by this title shall be construed as af-

fecting or intending to affect, or in any wayto interfere with, the authority of any Stateor local government relating to environ-mental protection or the siting of facilities.

TITLE VIII—HIGH-LEVEL RADIOACTIVEWASTE

SEC. 801. NUCLEAR WASTE DISPOSAL.(a) ENVIRONMENTAL PROTECTION AGENCY

STANDARDS.—(1) PROMULGATION.—Notwithstanding the

provisions of section 121(a) of the NuclearWaste Policy Act of 1982 (42 U.S.C. 10141(a)),section 161 b. of the Atomic Energy Act of1954 (42 U.S.C. 2201(b)), and any other author-ity of the Administrator of the Environ-mental Protection Agency to set generallyapplicable standards for the Yucca Mountainsite, the Administrator shall, based upon andconsistent with the findings and rec-ommendations of the National Academy ofSciences, promulgate, by rule, public healthand safety standards for protection of thepublic from releases from radioactive mate-rials stored or disposed of in the repositoryat the Yucca Mountain site. Such standardsshall prescribe the maximum annual effec-tive dose equivalent to individual membersof the public from releases to the accessibleenvironment from radioactive materialsstored or disposed of in the repository. Thestandards shall be promulgated not laterthan 1 year after the Administrator receivesthe findings and recommendations of the Na-tional Academy of Sciences under paragraph(2) and shall be the only such standards ap-plicable to the Yucca Mountain site.

(2) STUDY BY NATIONAL ACADEMY OFSCIENCES.—Within 90 days after the date ofthe enactment of this Act, the Adminis-trator shall contract with the NationalAcademy of Sciences to conduct a study toprovide, by not later than December 31, 1993,findings and recommendations on reasonablestandards for protection of the public healthand safety, including—

(A) whether a health-based standard basedupon doses to individual members of the pub-lic from releases to the accessible environ-ment (as that term is defined in the regula-tions contained in subpart B of part 191 oftitle 40, Code of Federal Regulations, as ineffect on November 18, 1985) will provide areasonable standard for protection of thehealth and safety of the general public;

(B) whether it is reasonable to assume thata system for post-closure oversight of the re-pository can be developed, based upon activeinstitutional controls, that will prevent anunreasonable risk of breaching the reposi-tory’s engineered or geologic barriers or in-creasing the exposure of individual membersof the public to radiation beyond allowablelimits; and

(C) whether it is possible to make scientif-ically supportable predictions of the prob-ability that the repository’s engineered orgeologic barriers will be breached as a resultof human intrusion over a period of 10,000years.

(3) APPLICABILITY.—The provisions of thissection shall apply to the Yucca Mountainsite, rather than any other authority of theAdministrator to set generally applicablestandards for radiation protection.

(b) NUCLEAR REGULATORY COMMISSION RE-QUIREMENTS AND CRITERIA.—

(1) MODIFICATIONS.—Not later than 1 yearafter the Administrator promulgates stand-ards under subsection (a), the Nuclear Regu-latory Commission shall, by rule, modify itstechnical requirements and criteria undersection 121(b) of the Nuclear Waste PolicyAct of 1982 (42 U.S.C. 10141(b)), as necessary,to be consistent with the Administrator’sstandards promulgated under subsection (a).

(2) REQUIRED ASSUMPTIONS.—The Commis-sion’s requirements and criteria shall as-sume, to the extent consistent with the find-

ings and recommendations of the NationalAcademy of Sciences, that, following reposi-tory closure, the inclusion of engineered bar-riers and the Secretary’s post-closure over-sight of the Yucca Mountain site, in accord-ance with subsection (c), shall be sufficientto—

(A) prevent any activity at the site thatposes an unreasonable risk of breaching therepository’s engineered or geologic barriers;and

(B) prevent any increase in the exposure ofindividual members of the public to radi-ation beyond allowable limits.

(c) POST-CLOSURE OVERSIGHT.—Followingrepository closure, the Secretary of Energyshall continue to oversee the Yucca Moun-tain site to prevent any activity at the sitethat poses an unreasonable risk of—

(1) breaching the repository’s engineered orgeologic barriers; or

(2) increasing the exposure of individualmembers of the public to radiation beyondallowable limits.SEC. 802. OFFICE OF THE NUCLEAR WASTE NEGO-

TIATOR.(a) EXTENSION.—Section 410 of the Nuclear

Waste Policy Act of 1982 (42 U.S.C. 10250) isamended by striking ‘‘5 years’’ and inserting‘‘7 years’’.

(b) DEFINITION OF STATE.—Section 401 ofthe Nuclear Waste Policy Act of 1982 (42U.S.C. 10241) is amended—

(1) by striking ‘‘States,’’ the first place itappears and inserting ‘‘States and’’; and

(2) by inserting a period after ‘‘District ofColumbia’’ and striking the remainder of thesentence.SEC. 803. NUCLEAR WASTE MANAGEMENT PLAN.

(a) PREPARATION AND SUBMISSION OF RE-PORT.—The Secretary of Energy, in consulta-tion with the Nuclear Regulatory Commis-sion and the Environmental ProtectionAgency, shall prepare and submit to the Con-gress a report on whether current programsand plans for management of nuclear wasteas mandated by the Nuclear Waste PolicyAct of 1982 (42 U.S.C. 10101 et seq.) are ade-quate for management of any additional vol-umes or categories of nuclear waste thatmight be generated by any new nuclearpower plants that might be constructed andlicensed after the date of the enactment ofthis Act. The Secretary shall prepare the re-port for submission to the President and theCongress within 1 year after the date of theenactment of this Act. The report shall ex-amine any new relevant issues related tomanagement of spent nuclear fuel and high-level radioactive waste that might be raisedby the addition of new nuclear-generatedelectric capacity, including anticipated in-creased volumes of spent nuclear fuel orhigh-level radioactive waste, any need foradditional interim storage capacity prior tofinal disposal, transportation of additionalvolumes of waste, and any need for addi-tional repositories for deep geologic disposal.

(b) OPPORTUNITY FOR PUBLIC COMMENT.—Inpreparation of the report required under sub-section (a), the Secretary of Energy shalloffer members of the public an opportunityto provide information and comment andshall solicit the views of the Nuclear Regu-latory Commission, the Environmental Pro-tection Agency, and other interested parties.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as may be necessary to carry out thissection.TITLE IX—UNITED STATES ENRICHMENT

CORPORATIONSEC. 901. ESTABLISHMENT OF THE UNITED

STATES ENRICHMENT CORPORA-TION.

The Atomic Energy Act of 1954 (42 U.S.C.2011 et seq.) is amended by adding at the endthe following new title:


2631

1992 T121.25‘‘TITLE II—UNITED STATES ENRICHMENT

CORPORATION‘‘CHAPTER 22—GENERAL PROVISIONS

‘‘SEC. 1201. DEFINITIONS.‘‘For purposes of this title:‘‘(1) The term ‘alternative technologies for

uranium enrichment’ means technologies toenrich uranium by methods other than thegaseous diffusion process.

‘‘(2) The term ‘AVLIS’ means atomic vaporlaser isotope separation technology.

‘‘(3) The term ‘Board’ means the Board ofDirectors of the Corporation establishedunder section 1304.

‘‘(4) The term ‘Corporation’ means theUnited States Enrichment Corporation.

‘‘(5) The term ‘corrective actions’ has themeaning given such term by the Adminis-trator of the Environmental ProtectionAgency under section 3004(u) of the SolidWaste Disposal Act (42 U.S.C. 6924 (u)).

‘‘(6) The term ‘decontamination and de-commissioning’ means those activities,other than response actions or corrective ac-tions, undertaken to decontaminate and de-commission inactive uranium enrichment fa-cilities that have residual radioactive ormixed radioactive and hazardous chemicalcontamination, including depleted tailings.

‘‘(7) The term ‘Department’ means the De-partment of Energy.

‘‘(8) The term ‘highly enriched uranium’means uranium enriched to 20 percent ormore of the uranium-235 isotope.

‘‘(9) The term ‘low-enriched uranium’means uranium enriched to less than 20 per-cent of the uranium-235 isotope.

‘‘(10) The term ‘releases’ has the meaninggiven the term ‘release’ in section 101(22) ofthe Comprehensive Environmental Response,Compensation, and Liability Act of 1980 (42U.S.C. 9601(22)).

‘‘(11) The term ‘remedial action’ has themeaning given such term in section 101(24) ofthe Comprehensive Environmental Response,Compensation, and Liability Act of 1980 (42U.S.C. 9601(24))).

‘‘(12) The term ‘response actions’ has themeaning given the term ‘response’ in section101(25) of the Comprehensive EnvironmentalResponse, Compensation, and Liability Actof 1980 (42 U.S.C. 9601(25)).

‘‘(13) The term ‘Secretary’ means the Sec-retary of Energy.

‘‘(14) The term ‘uranium enrichment’means the separation of uranium of a givenisotopic content into 2 components, 1 havinga higher percentage of a fissile isotope and 1having a lower percentage.‘‘SEC. 1202. PURPOSES.

‘‘The Corporation is created for the follow-ing purposes:

‘‘(1) To operate as a business enterprise ona profitable and efficient basis.

‘‘(2) To maximize the long-term value ofthe Corporation to the Treasury of theUnited States.

‘‘(3) To lease Department uranium enrich-ment facilities, as needed.

‘‘(4) To acquire uranium for uranium en-richment, low-enriched uranium for resale,and highly enriched uranium for conversioninto low-enriched uranium, as needed.

‘‘(5) To market and sell its enriched ura-nium and uranium enrichment and relatedservices to—

‘‘(A) the Department for governmentalpurposes; and

‘‘(B) domestic and foreign persons, as pro-vided in section 1303(6).

‘‘(6) To conduct research and developmentas required to meet business objectives forthe purposes of identifying, evaluating, im-proving, and testing alternative technologiesfor uranium enrichment.

‘‘(7) To conduct the business as a self-fi-nancing corporation and eliminate the needfor Federal Government appropriations or

sources of Federal financing other thanthose provided in this title.

‘‘(8) To help maintain a reliable and eco-nomical domestic source of uranium enrich-ment services.

‘‘(9) To comply with laws, and regulationspromulgated thereunder, to protect the pub-lic health, safety, and the environment.

‘‘(10) To continue at all times to meet theobjectives of ensuring the Nation’s commondefense and security, including abiding byUnited States laws and policies concerningspecial nuclear materials and nonprolifera-tion of atomic weapons and other nonpeace-ful uses of atomic energy.

‘‘(11) To take all other lawful actions infurtherance of these purposes.‘‘CHAPTER 23—ESTABLISHMENT, POWERS,

AND ORGANIZATION OF CORPORATION‘‘SEC. 1301. ESTABLISHMENT OF THE CORPORA-

TION.‘‘(a) IN GENERAL.—There is established a

body corporate to be known as the UnitedStates Enrichment Corporation.

‘‘(b) GOVERNMENT CORPORATION.—The Cor-poration shall be established as a whollyowned Government corporation subject tochapter 91 of title 31, United States Code(commonly referred to as the GovernmentCorporation Control Act), except as other-wise provided in this title.

‘‘(c) FEDERAL AGENCY.—The Corporationshall be an agency and instrumentality ofthe United States.‘‘SEC. 1302. CORPORATE OFFICES.

‘‘The Corporation shall maintain an officefor the service of process and papers in theDistrict of Columbia, and shall be deemed,for purposes of venue in civil actions, to bea resident thereof. The Corporation may es-tablish offices in such other place or placesas it may deem necessary or appropriate inthe conduct of its business.‘‘SEC. 1303. POWERS OF THE CORPORATION.

‘‘In order to accomplish its purposes, theCorporation—

‘‘(1) shall, except as provided in this titleor applicable Federal law, have all the pow-ers of a private corporation incorporatedunder the District of Columbia Business Cor-poration Act;

‘‘(2) shall have the priority of the UnitedStates with respect to the payment of debtsout of bankrupt, insolvent, and decedents’estates;

‘‘(3) may obtain from the Administrator ofGeneral Services the services the Adminis-trator is authorized to provide agencies ofthe United States, on the same basis as thoseservices are provided to other agencies of theUnited States;

‘‘(4) shall enrich uranium, provide for ura-nium to be enriched by others, or acquire en-riched uranium (including low-enriched ura-nium derived from highly enriched uraniumprovided under section 1408);

‘‘(5) may conduct, or provide for conduct-ing, those research and development activi-ties related to uranium enrichment and re-lated processes and activities the Corpora-tion considers necessary or advisable tomaintain the Corporation as a commercialenterprise operating on a profitable and effi-cient basis;

‘‘(6) may enter into transactions regardinguranium, enriched uranium, or depleted ura-nium with—

‘‘(A) persons licensed under section 53, 63,103, or 104 in accordance with the licensesheld by those persons;

‘‘(B) persons in accordance with, and with-in the period of, an agreement for coopera-tion arranged under section 123; or

‘‘(C) persons otherwise authorized by lawto enter into such transactions;

‘‘(7) may enter into contracts with personslicensed under section 53, 63, 103, or 104, foras long as the Corporation considers nec-

essary or desirable, to provide uranium oruranium enrichment and related services;

‘‘(8) may enter into contracts to provideuranium or uranium enrichment and relatedservices in accordance with, and within theperiod of, an agreement for cooperation ar-ranged under section 123 or as otherwise au-thorized by law; and

‘‘(9) shall sell to the Department as pro-vided in this title, without regard to section57 e., the amounts of uranium enrichmentand related services that the Department de-termines from time to time are required forit to—

‘‘(A) carry out Presidential directions andauthorizations under section 91; and

‘‘(B) conduct other Department programs.‘‘SEC. 1304. BOARD OF DIRECTORS.

‘‘(a) IN GENERAL.—The powers of the Cor-poration are vested in the Board of Direc-tors.

‘‘(b) APPOINTMENT.—The Board of Directorsshall consist of 5 individuals, to be appointedby the President by and with the advice andconsent of the Senate. The President shalldesignate a Chairman of the Board fromamong members of the Board.

‘‘(c) QUALIFICATIONS.—Members of theBoard shall be citizens of the United States.No member of the Board shall be an em-ployee of the Corporation or have any directfinancial relationship with the Corporationother than that of being a member of theBoard.

‘‘(d) TERMS.—‘‘(1) IN GENERAL.—Except as provided in

paragraph (2), members of the Board shallserve 5-year terms or until the election of anew Board of Directors under section 1704,whichever comes first.

‘‘(2) INITIAL MEMBERS.—Of the membersfirst appointed to the Board—

‘‘(A) 1 shall be appointed for a 1-year term;‘‘(B) 1 shall be appointed for a 2-year term;‘‘(C) 1 shall be appointed for a 3-year term;

and‘‘(D) 1 shall be appointed for a 4-year term.‘‘(3) REAPPOINTMENT.—Members of the

Board may be reappointed by the President,by and with the advice and consent of theSenate.

‘‘(e) VACANCIES.—Upon the occurrence of avacancy on the Board, the President by andwith the advice and consent of the Senateshall appoint an individual to fill such va-cancy for the remainder of the applicableterm.

‘‘(f) MEETINGS AND QUORUM.—The Boardshall meet at any time pursuant to the callof the Chairman and as provided by the by-laws of the Corporation, but not less thanquarterly. 3 voting members of the Boardshall constitute a quorum. A majority of theBoard shall adopt and from time to timemay amend bylaws for the operation of theBoard.

‘‘(g) POWERS.—The Board shall be respon-sible for general management of the Cor-poration and shall have the same authority,privileges, and responsibilities as the boardof directors of a private corporation incor-porated under the District of Columbia Busi-ness Corporation Act.

‘‘(h) COMPENSATION.—Members of the Boardshall serve on a part-time basis and shall re-ceive per diem, when engaged in the actualperformance of Corporation duties, plus re-imbursement for travel, subsistence, andother necessary expenses incurred in the per-formance of their duties.

‘‘(i) MEMBERSHIP OF SECRETARY OF TREAS-URY.—The President may appoint the Sec-retary of the Treasury or his designee toserve as a member of the Board or as a non-voting, ex officio member of the Board.

‘‘(j) CONFLICT OF INTEREST REQUIRE-MENTS.—No director, officer, or other man-agement level employee of the Corporation

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OCTOBER 5T121.25may have a financial interest in any cus-tomer, contractor, or competitor of the Cor-poration or in any business that may be ad-versely affected by the success of the Cor-poration.‘‘SEC. 1305. EMPLOYEES OF THE CORPORATION.

‘‘(a) APPOINTMENT.—The Board shall ap-point such officers and employees as are nec-essary for the transaction of its business.

‘‘(b) COMPENSATION, DUTIES, AND RE-MOVAL.—The Board shall, without regard tosection 5301 of title 5, United States Code, fixthe compensation of all officers and employ-ees of the Corporation, define their duties,and provide a system of organization to fixresponsibility and promote efficiency. Anyofficer or employee of the Corporation maybe removed in the discretion of the Board.

‘‘(c) APPLICABLE CRITERIA.—The Boardshall ensure that the personnel function andorganization is consistent with the prin-ciples of section 2301(b) of title 5, UnitedStates Code, relating to merit system prin-ciples. Officers and employees shall be ap-pointed, promoted, and assigned on the basisof merit and fitness, and other personnel ac-tions shall be consistent with the principlesof fairness and due process but without re-gard to those provisions of title 5 of theUnited States Code governing appointmentsand other personnel actions in the competi-tive service.

‘‘(d) TREATMENT OF PERSONS EMPLOYEDPRIOR TO TRANSITION DATE.—Compensation,benefits, and other terms and conditions ofemployment in effect immediately prior tothe transition date, whether provided bystatute or by rules of the Department or theexecutive branch, shall continue to apply toofficers and employees who transfer to theCorporation from other Federal employmentuntil changed by the Board.

‘‘(e) PROTECTION OF EXISTING EMPLOYEES.—‘‘(1) IN GENERAL.—It is the purpose of this

subsection to ensure that the establishmentof the Corporation pursuant to this chaptershall not result in any adverse effects on theemployment rights, wages, or benefits of em-ployees at facilities that are operated, di-rectly or under contract, in the performanceof the functions vested in the Corporation.

‘‘(2) APPLICABILITY OF EXISTING COLLECTIVEBARGAINING AGREEMENT.—Any employer (in-cluding the Corporation) at a facility de-scribed in paragraph (1) shall abide by theterms of a collective bargaining agreementin effect on April 30, 1991, at each individualfacility until—

‘‘(A) the earlier of the date on which a newbargaining agreement is signed; or

‘‘(B) the end of the 2-year period beginningon the date of the enactment of this title.

‘‘(3) APPLICABILITY OF NLRA.—Except asspecifically provided in this subsection, theCorporation is subject to the provisions ofthe National Labor Relations Act (29 U.S.C.151 et seq.).

‘‘(4) BENEFITS OF TRANSFEREES ANDDETAILEES.—At the request of the Board andsubject to the approval of the Secretary, anemployee of the Department may be trans-ferred or detailed as provided for in section1315, to the Corporation without any loss inaccrued benefits or standing within the CivilService System. For those employees whoaccept transfer to the Corporation, it shallbe their option as to whether to have any ac-crued retirement benefits transferred to a re-tirement system established by the Corpora-tion or to retain their coverage under eitherthe Civil Service Retirement System or theFederal Employees’ Retirement System, asapplicable, in lieu of coverage by the Cor-poration’s retirement system. For those em-ployees electing to remain with one of theFederal retirement systems, the Corporationshall withhold pay and make such paymentsas are required under the Federal retirement

system. For those Department employees de-tailed, the Department shall offer those em-ployees a position of like grade, compensa-tion, and proximity to their official duty sta-tion after their services are no longer re-quired by the Corporation.‘‘SEC. 1306. AUDITS.

‘‘(a) INDEPENDENT AUDITS.—‘‘(1) IN GENERAL.—The financial statements

of the Corporation shall be prepared in ac-cordance with generally accepted accountingprinciples and shall be audited annually byan independent certified public accountantin accordance with auditing standards issuedby the Comptroller General. Such auditingstandards shall be consistent with the pri-vate sector’s generally accepted auditingstandards.

‘‘(2) REVIEW BY GAO.—The Comptroller Gen-eral may review any audit of the Corpora-tion’s financial statements conducted underparagraph (1). The Comptroller General shallreport to the Congress and the Corporationthe results of any such review and shall in-clude in such report appropriate rec-ommendations.

‘‘(b) GAO AUDITS.—‘‘(1) IN GENERAL.—The Comptroller General

may audit the financial statements of theCorporation for any year in the manner pro-vided in subsection (a)(1).

‘‘(2) REIMBURSEMENT BY CORPORATION.—TheCorporation shall reimburse the ComptrollerGeneral for the full cost of any audit con-ducted under this subsection, as determinedby the Comptroller General.

‘‘(c) AVAILABILITY OF BOOKS ANDRECORDS.—All books, accounts, financialrecords, reports, files, papers, and otherproperty belonging to or in use by the Cor-poration and its auditor that the Comptrol-ler General considers necessary to the per-formance of any audit or review under thissection shall be made available to the Comp-troller General, subject to section 1314.

‘‘(d) TREATMENT OF GAO AUDITS.—Activi-ties the Comptroller General conducts underthis section shall be in lieu of any otheraudit of the financial transactions of theCorporation the Comptroller General is re-quired to make under chapter 91 of title 31,United States Code, or other law.‘‘SEC. 1307. ANNUAL REPORTS.

‘‘(a) IN GENERAL.—The Corporation shallprepare and submit an annual report of itsactivities to the President and the Congress.This report shall contain—

‘‘(1) a general description of the Corpora-tion’s operations;

‘‘(2) a summary of the Corporation’s oper-ating and financial performance, includingan explanation of the decision to pay or notpay dividends;

‘‘(3) copies of audit reports prepared undersection 1305;

‘‘(4) the information required under regula-tions issued under section 13 of the Securi-ties Exchange Act of 1934 (15 U.S.C. 78m); and

‘‘(5) an identification and assessment ofany impairment of capital or ability of theCorporation to comply with this title.

‘‘(b) DEADLINE.—The report shall be com-pleted not later than 150 days following theclose of each of the Corporation’s fiscal yearsand shall accurately reflect the financial po-sition of the Corporation at fiscal year end.‘‘SEC. 1308. ACCOUNTS.

‘‘(a) ESTABLISHMENT OF UNITED STATES EN-RICHMENT CORPORATION FUND.—There is es-tablished in the Treasury of the UnitedStates a revolving fund, to be known as the‘United States Enrichment CorporationFund’, which shall be available to the Cor-poration, without need for further appropria-tion and without fiscal year limitation, forcarrying out its purposes, functions, andpowers, and which shall not be subject to ap-portionment under subchapter II of chapter15 of title 31, United States Code.

‘‘(b) TRANSFER OF UNEXPENDED BAL-ANCES.—On the transfer date, the Secretaryshall, without need of further appropriation,transfer to the Corporation the unexpendedbalance of appropriations and other moniesavailable to the Department (inclusive offunds set aside for accounts payable), and ac-counts receivable which are related to func-tions and activities acquired by the Corpora-tion from the Department pursuant to thistitle, including all advance payments.‘‘SEC. 1309. OBLIGATIONS.

‘‘(a) ISSUANCE.—‘‘(1) IN GENERAL.—The Corporation may

issue and sell bonds, notes, and other evi-dences of indebtedness (collectively referredto in this title as ‘bonds’), except that theCorporation may not issue or sell bonds forthe purpose of constructing new uranium en-richment facilities or conducting directly re-lated preconstruction activities. Borrowingunder this paragraph during any fiscal yearending before October 1, 1996, shall be subjectto approval in appropriation Acts.

‘‘(2) USE OF REVENUES.—The Corporationmay pledge and use its revenues for paymentof the principal of and interest on its bonds,for their purchase or redemption, and forother purposes incidental to these functions,including creation of reserve funds and otherfunds that may be similarly pledged andused.

‘‘(3) AGREEMENTS WITH HOLDERS AND TRUST-EES.—The Corporation may enter into bind-ing covenants with the holders and trusteesof its bonds with respect to—

‘‘(A) the establishment of reserve andother funds;

‘‘(B) stipulations concerning the subse-quent issuance of bonds; and

‘‘(C) other matters not inconsistent withthis title;

that the Corporation determines necessaryor desirable to enhance the marketability ofthe bonds.

‘‘(b) NOT OBLIGATIONS OF UNITED STATES.—Bonds issued by the Corporation under thissection shall not be obligations of, or guar-anteed as to principal or interest by, theUnited States, and the bonds shall so plainlystate.

‘‘(c) TERMS AND CONDITIONS.—‘‘(1) NEGOTIABLE; MATURITY.—Bonds issued

by the Corporation under this section shallbe negotiable instruments unless otherwisespecified in the bond and shall mature notmore than 50 years after their date ofissuance.

‘‘(2) ROLE OF SECRETARY OF THE TREAS-URY.—

‘‘(A) RIGHT OF DISAPPROVAL.—The Corpora-tion may set the terms and conditions ofbonds issued under this section, subject todisapproval of such terms and conditions bythe Secretary of the Treasury within 5 daysafter the Secretary of the Treasury is noti-fied of the following terms and conditions ofthe bonds:

‘‘(i) Their forms and denominations.‘‘(ii) The times, amounts, and prices at

which they are sold.‘‘(iii) Their rates of interest.‘‘(iv) The terms at which they may be re-

deemed by the Corporation before maturity.‘‘(v) The priority of their claims on the

Corporation’s net revenues with respect toprincipal and interest payments.

‘‘(vi) Any other terms and conditions.‘‘(B) INAPPLICABILITY OF RIGHT TO PRE-

SCRIBE TERMS.—Section 9108(a) of title 31,United States Code, shall not apply to theCorporation.

‘‘(d) INAPPLICABILITY OF SECURITIES RE-QUIREMENTS.—The Corporation shall be con-sidered an executive department of theUnited States for purposes of section 3(c) ofthe Securities Exchange Act of 1934 (15U.S.C. 78c(c)).


2633

1992 T121.25‘‘(e) INAPPLICABILITY OF FFB.—The Corpora-

tion shall not issue or sell any bonds to theFederal Financing Bank.‘‘SEC. 1310. EXEMPTION FROM TAXATION AND

PAYMENTS IN LIEU OF TAXES.‘‘(a) EXEMPTION FROM TAXATION.—In order

to render financial assistance to those Statesand localities in which the facilities of theCorporation are located, the Corporationshall, beginning in fiscal year 1998, makepayments to State and local governments asprovided in this section. These paymentsshall be in lieu of any and all State and localtaxes on the real and personal property ofthe Corporation. All property of the Corpora-tion is expressly exempted from taxation inany manner or form by any State, county, orother local government entity includingState, county, or other local governmentsales tax.

‘‘(b) PAYMENTS IN LIEU OF TAXES.—Begin-ning in fiscal year 1998, the Corporation shallmake annual payments, in amounts deter-mined by the Corporation to be fair and rea-sonable, to the State and local governmentalagencies having tax jurisdiction in any areawhere facilities of the Corporation are lo-cated. In making these determinations, theCorporation shall be guided by the followingcriteria:

‘‘(1) The Corporation shall take into ac-count the customs and practices prevailingin the area with respect to appraisal, assess-ment, and classification of industrial prop-erty and any special considerations extendedto large-scale industrial operations.

‘‘(2) The payment made to any taxing au-thority for any period shall not be less thanthe payments that would have been made tothe taxing authority for the same period bythe Department and its cost-type contrac-tors on behalf of the Department with re-spect to property that has been transferredto the Corporation under section 1404 andthat would have been attributable to theownership, management, operation, andmaintenance of the Department’s uraniumenrichment facilities, applying the laws andpolicies prevailing immediately prior to thetransition date.

‘‘(c) TIME OF PAYMENTS.—Payments shallbe made by the Corporation at the timewhen payments of taxes by taxpayers to eachtaxing authority are due and payable.

‘‘(d) DETERMINATION OF AMOUNT DUE.—Thedetermination by the Corporation of theamounts due under this section shall be finaland conclusive.‘‘SEC. 1311. COOPERATION WITH OTHER AGEN-

CIES.‘‘The Corporation may request to use on a

reimbursable basis the available services,equipment, personnel, and facilities of agen-cies of the United States, and on a similarbasis may cooperate with such agencies inthe establishment and use of services, equip-ment, and facilities of the Corporation. Fur-ther, the Corporation may confer with andavail itself of the cooperation, services,records, and facilities of State, territorial,municipal, or other local agencies.‘‘SEC. 1312. APPLICABILITY OF CERTAIN FED-

ERAL LAWS.‘‘(a) ANTITRUST LAWS.—The Corporation

shall conduct its activities in a manner con-sistent with the policies expressed in the fol-lowing antitrust laws:

‘‘(1) The Sherman Act (15 U.S.C. 1–7).‘‘(2) The Clayton Act (15 U.S.C. 12–27).‘‘(3) Sections 73 and 74 of the Wilson Tariff

Act (15 U.S.C. 8 and 9).‘‘(b) ENVIRONMENTAL LAWS.—The Corpora-

tion shall be subject to, and comply with, allFederal and State, interstate, and local envi-ronmental laws and requirements, both sub-stantive and procedural, in the same man-ner, and to the same extent, as any personwho is subject to such laws and require-

ments. For purposes of enforcing any suchlaw or substantive or procedural require-ments (including any injunctive relief, ad-ministrative order, or civil or administrativepenalty or fine) against the Corporation, theUnited States expressly waives any immu-nity otherwise applicable to the Corporation.For the purposes of this subsection, the term‘person’ means an individual, trust, firm,joint stock company, corporation, partner-ship, association, State, municipality, or po-litical subdivision of a State.

‘‘(c) OSHA REQUIREMENTS.—Notwithstand-ing sections 3(5), 4(b)(1), and 19 of the Occu-pational Safety and Health Act of 1970 (29U.S.C. 652(5), 653(b)(1), and 668)), the Corpora-tion shall be subject to, and comply with,such Act and all regulations and standardspromulgated thereunder in the same manner,and to the same extent, as an employer issubject to such Act. For the purposes of en-forcing such Act (including any injunctiverelief, administrative order, or civil, admin-istrative, or criminal penalty or fine)against the Corporation, the United Statesexpressly waives any immunity otherwiseapplicable to the Corporation.

‘‘(d) LABOR STANDARDS.—The Act of March3, 1931 (known as the Davis-Bacon Act) (40U.S.C. 276a et seq.) and the Service ContractAct of 1965 (41 U.S.C. 351 et seq.) shall applyto the Corporation. All laborers and mechan-ics employed on the construction, alteration,or repair of projects funded, in whole or inpart, by the Corporation shall be paid wagesat rates not less than those prevailing onprojects of a similar character in the local-ity as determined by the Secretary of Laborin accordance with such Act of March 3, 1931.The Secretary of Labor shall have, with re-spect to the labor standards specified in thissubsection, the authority and functions setforth in Reorganization Plan Numbered 14 of1950 (15 F.R. 3176, 64 Stat. 1267) and the Actof June 13, 1934 (40 U.S.C. 276c).

‘‘(e) ENERGY REORGANIZATION ACT REQUIRE-MENTS.—The Corporation is subject to theprovisions of section 210 of the Energy Reor-ganization Act of 1974 (42 U.S.C. 5850) to thesame extent as an employer subject to suchsection, and, with respect to the operation ofthe facilities leased by the Corporation, sec-tion 206 of the Energy Reorganization Act of1974 (42 U.S.C. 5846) shall apply to the direc-tors and officers of the Corporation.

‘‘(f) EXEMPTION FROM FEDERAL PROPERTYREQUIREMENTS.—The Corporation shall notbe subject to the Federal Property and Ad-ministrative Services Act of 1949 (41 U.S.C.471 et seq.).‘‘SEC. 1313. SECURITY.

‘‘Any references to the term ‘Commission’or to the Department in sections 161 k., 221a., and 230 shall be considered to include theCorporation.‘‘SEC. 1314. CONTROL OF INFORMATION.

‘‘(a) IN GENERAL.—Except as provided insubsection (b), the Corporation may protecttrade secret and commercial or financial in-formation to the same extent as a privatelyowned corporation.

‘‘(b) OTHER APPLICABLE LAWS.—Section552(d) of title 5, United States Code, shallapply to the Corporation, and such informa-tion shall be subject to the applicable provi-sions of law protecting the confidentiality oftrade secrets and business and financial in-formation, including section 1905 of title 18,United States Code.‘‘SEC. 1315. TRANSITION.

‘‘(a) TRANSITION MANAGER.—Within 30 daysafter the date of the enactment of this title,the President shall appoint a TransitionManager, who shall serve at the pleasure ofthe President until a quorum of the Boardhas been appointed and confirmed in accord-ance with section 1304.

‘‘(b) POWERS.—

‘‘(1) IN GENERAL.—Until a quorum of theBoard has qualified, the Transition Managershall exercise the powers and duties of theBoard and shall be responsible for taking allactions needed to effect the transfer of theuranium enrichment enterprise from theSecretary to the Corporation on the transi-tion date.

‘‘(2) CONTINUATION UNTIL BOARD HASQUORUM.—In the event that a quorum of theBoard have not qualified by the transitiondate, the Transition Manager shall continueto exercise the powers and duties of theBoard until a quorum has qualified.

‘‘(c) RATIFICATION OF TRANSITION MAN-AGER’S ACTIONS.—All actions taken by theTransition Manager before the qualificationof a quorum of the Board shall be subject toratification by the Board.

‘‘(d) RESPONSIBILITIES OF SECRETARY.—Be-fore the transition date, the Secretaryshall—

‘‘(1) continue to be responsible for themanagement and operation of the uraniumenrichment plants;

‘‘(2) provide funds, to the extent providedin appropriations Acts, to the TransitionManager to pay salaries and expenses;

‘‘(3) delegate Department employees to as-sist the Transition Manager in meeting hisresponsibilities under this section; and

‘‘(4) assist and cooperate with the Transi-tion Manager in preparing for the transfer ofthe uranium enrichment enterprise to theCorporation on the transition date.

‘‘(e) TRANSITION DATE.—The transitiondate shall be July 1, 1993.

‘‘(f) DETAIL OF PERSONNEL.—For the pur-pose of continuity of operations, mainte-nance, and authority, the Department shalldetail, for up to 18 months after the date ofthe enactment of this title, appropriate De-partment personnel as may be required in anacting capacity, until such time as a Boardis confirmed and top officers of the Corpora-tion are hired. The Corporation shall reim-burse the Department and its contractors forthe detail of such personnel.‘‘SEC. 1316. WORKING CAPITAL ACCOUNT.

‘‘There shall be established within the Cor-poration a Working Capital Account inwhich the Corporation may retain all reve-nue necessary for legitimate business ex-penses, or investments, related to carryingout its purposes.‘‘CHAPTER 24—RIGHTS, PRIVILEGES, AND

ASSETS OF THE CORPORATION‘‘SEC. 1401. MARKETING AND CONTRACTING AU-

THORITY.‘‘(a) EXCLUSIVE MARKETING AGENT.—The

Corporation shall act as the exclusive mar-keting agent on behalf of the United StatesGovernment for entering into contracts forproviding enriched uranium (including low-enriched uranium derived from highly en-riched uranium) and uranium enrichmentand related services. The Department maynot market enriched uranium (includinglow-enriched uranium derived from highlyenriched uranium), or uranium enrichmentand related services, after the transitiondate.

‘‘(b) TRANSFER OF CONTRACTS.—‘‘(1) IN GENERAL.—Except as provided in

paragraph (2), all contracts, agreements, andleases with the Department, including alluranium enrichment contracts and powerpurchase contracts, that have been executedby the Department before the transition dateand that relate to uranium enrichment andrelated services shall transfer to the Cor-poration.

‘‘(2) EXCEPTIONS.—‘‘(A) TVA SETTLEMENT.—The rights and re-

sponsibilities of the Department under thesettlement agreement with the TennesseeValley Authority, filed on December 18, 1987,with the United States Claims Court, shallnot transfer to the Corporation.

JOURNAL OF THE

2634

OCTOBER 5T121.25‘‘(B) NONTRANSFERABLE POWER CON-

TRACTS.—If the Secretary determines that apower purchase contract executed by the De-partment prior to the transition date cannotbe transferred under its terms, the Secretarymay continue to receive power under thecontract and resell such power to the Cor-poration at cost.

‘‘(C) NONPOWER APPLICATIONS.—Contractsfor enriched uranium and uranium servicesin existence as of the date of the enactmentof this title for research and development orother nonpower applications shall remainwith the Department. At the request of theDepartment, the Corporation, in consulta-tion with the Department, may enter intosuch contracts it determines to be appro-priate.‘‘SEC. 1402. PRICING.

‘‘(a) SERVICES PROVIDED TO COMMERCIALCUSTOMERS.—The Corporation shall establishprices for its products, materials, and serv-ices provided to customers other than theDepartment on a basis that will allow it toattain the normal business objectives of aprofitmaking corporation.

‘‘(b) SERVICES PROVIDED TO DOE.—The Cor-poration shall charge prices to the Depart-ment for uranium enrichment services pro-vided under section 1303(9) on a basis thatwill allow it to recover its costs, on a yearlybasis, for providing products, materials, andservices, and provide for a reasonable profit.‘‘SEC. 1403. LEASING OF GASEOUS DIFFUSION FA-

CILITIES OF DEPARTMENT.‘‘(a) IN GENERAL.—The Corporation shall

lease the Paducah Gaseous Diffusion Plantin Paducah, Kentucky, the Portsmouth Gas-eous Diffusion Plant in Piketon, Ohio, andrelated property of the Department, for a pe-riod of 6 years from the transition date.Thereafter, the Corporation shall have theexclusive option to lease such facilities andrelated property for additional periods.

‘‘(b) TERMS OF LEASE.—The Corporationand the Department shall set mutuallyagreeable terms for a lease under subsection(a), including specifying annual payments tothe Department by the Corporation to bemade. The amount of annual payments shallbe equal to the cost incurred by the Depart-ment in administering the lease and provid-ing services related to the lease to the Cor-poration (excluding depreciation and im-puted interest on original plant investmentsin the Department’s gaseous diffusion plantsand costs under subsection (d)).

‘‘(c) EXCLUSION OF FACILITIES FOR PRODUC-TION OF HIGHLY ENRICHED URANIUM.—Sub-section (a) shall not apply to Department fa-cilities necessary for the production of high-ly enriched uranium. The Secretary maygrant to the Corporation access to such fa-cilities for purposes other than the produc-tion of highly enriched uranium.

‘‘(d) DOE RESPONSIBILITY FOR PREEXISTINGCONDITIONS.—The payment of any costs ofdecontamination and decommissioning, re-sponse actions, or corrective actions with re-spect to conditions existing before the tran-sition date, in connection with property ofthe Department leased under subsection (a),shall remain the sole responsibility of theDepartment.

‘‘(e) ENVIRONMENTAL AUDIT.—The Sec-retary, in consultation with the Adminis-trator of the Environmental ProtectionAgency, shall conduct a comprehensive envi-ronmental audit identifying environmentalconditions that will remain the responsibil-ity of the Department pursuant to sub-section (d) after the transition date. Suchaudit shall be completed no later than thetransition date.

‘‘(f) TREATMENT UNDER PRICE-ANDERSONPROVISIONS.—Any lease executed betweenthe Secretary and the Corporation under thissection shall be deemed to be a contract forpurposes of section 170 d.

‘‘(g) WAIVER OF EIS REQUIREMENT.—Theexecution of the lease by the Corporationand the Department shall not be considereda major Federal action significantly affect-ing the quality of the human environmentfor purposes of section 102 of the NationalEnvironmental Policy Act of 1969 (42 U.S.C.4332).‘‘SEC. 1404. CAPITAL STRUCTURE OF CORPORA-

TION.‘‘(a) CAPITAL STOCK.—‘‘(1) ISSUANCE TO SECRETARY OF THE TREAS-

URY.—The Corporation shall issue capitalstock representing an equity investmentequal to the greater of—

‘‘(A) $3,000,000,000; or‘‘(B) the book value of assets transferred to

the Corporation, as reported in the UraniumEnrichment Annual Report for fiscal year1991, modified to reflect continued deprecia-tion and other usual changes that occur upto the transfer date.

The Secretary of the Treasury shall holdsuch stock for the United States, except thatall rights and duties pertaining to manage-ment of the Corporation shall remain vestedin the Board.

‘‘(2) RESTRICTION ON TRANSFERS OF STOCKBY UNITED STATES.—The capital stock of theCorporation shall not be sold, transferred, orconveyed by the United States, except tocarry out the privatization of the Corpora-tion under section 1502.

‘‘(3) ANNUAL ASSESSMENT.—The Secretaryof the Treasury shall annually assess thevalue of the stock held by the Secretaryunder paragraph (1) and submit to the Con-gress a report setting forth such value. Theannual assessment of the Secretary shall besubject to review by an independent auditor.

‘‘(b) PAYMENT OF DIVIDENDS.—The Corpora-tion shall pay into miscellaneous receipts ofthe Treasury of the United States or suchother fund as is provided by law, dividendson the capital stock, out of earnings of theCorporation, as a return on the investmentrepresented by such stock. Until privatiza-tion occurs under section 1502, the Corpora-tion shall pay as dividends to the Treasuryof the United States all net revenues remain-ing at the end of each fiscal year not re-quired for operating expenses or for depositinto the Working Capital Account estab-lished in section 1316.

‘‘(c) PROHIBITION ON ADDITIONAL FEDERALASSISTANCE.—Except as otherwise specifi-cally provided in this title, the Corporationshall receive no appropriations, loans, orother financial assistance from the FederalGovernment.

‘‘(d) SOLE RECOVERY OF UNRECOVEREDCOSTS.—Receipt by the United States of theproceeds from the sale of stock issued by theCorporation under subsection (a)(1), and thedividends paid under subsection (b), shallconstitute the sole recovery by the UnitedStates of previously unrecovered costs (in-cluding depreciation and imputed interest onoriginal plant investments in the Depart-ment’s gaseous diffusion plants) that havebeen incurred by the United States for ura-nium enrichment activities prior to the tran-sition date.‘‘SEC. 1405. PATENTS AND INVENTIONS.

‘‘The Corporation may at any time applyto the Department for a patent license forthe use of an invention or discovery useful inthe production or utilization of special nu-clear material or atomic energy covered by apatent when the patent has not been de-clared to be affected with the public interestunder section 153 a. and when use of the pat-ent is within the Corporation’s authority. Anapplication shall constitute an applicationunder section 153 c. subject to section 153 c.,d., e., f., g., and h.‘‘SEC. 1406. LIABILITIES.

‘‘(a) LIABILITIES BASED ON OPERATIONS BE-FORE TRANSITION.—Except as otherwise pro-

vided in this title, all liabilities attributableto operation of the uranium enrichment en-terprise before the transition date shall re-main direct liabilities of the Department.

‘‘(b) JUDGMENTS BASED ON OPERATIONS BE-FORE TRANSITION.—Any judgment enteredagainst the Corporation imposing liabilityarising out of the operation of the uraniumenrichment enterprise before the transitiondate shall be considered a judgment againstand shall be payable solely by the Depart-ment.

‘‘(c) REPRESENTATION.—With regard to anyclaim seeking to impose liability under sub-section (a) or (b), the United States shall berepresented by the Department of Justice.

‘‘(d) JUDGMENTS BASED ON OPERATIONSAFTER TRANSITION.—Any judgment enteredagainst the Corporation arising from oper-ations of the Corporation on or after thetransition date shall be payable solely by theCorporation from its own funds. The Cor-poration shall not be considered a Federalagency for purposes of chapter 171 of title 28,United States Code.‘‘SEC. 1407. TRANSFER OF URANIUM INVEN-

TORIES.‘‘The Secretary shall transfer to the Cor-

poration without charge all raw and low-en-riched uranium inventories of the Depart-ment necessary for the fulfillment of con-tracts transferred under section 1401(b).‘‘SEC. 1408. PURCHASE OF HIGHLY ENRICHED

URANIUM FROM FORMER SOVIETUNION.

‘‘(a) IN GENERAL.—The Corporation is au-thorized to negotiate the purchase of allhighly enriched uranium made available byany State of the former Soviet Union undera government-to-government agreement orshall assume the obligations of the Depart-ment under any contractual agreement thathas been reached with any such State or anyprivate entity before the transition date.The Corporation may only purchase this ma-terial so long as the quality of the materialcan be made suitable for use in commercialreactors.

‘‘(b) ASSESSMENT OF POTENTIAL USE.—TheCorporation shall prepare an assessment ofthe potential use of highly enriched uraniumin the business operations of the Corpora-tion.

‘‘(c) PLAN FOR BLENDING AND CONVERSION.—In the event that the agreement under sub-section (a) provides for the Corporation toprovide for the blending and conversion theassessment shall include a plan for suchblending and conversion. The plan shall de-termine the least-cost approach to providingblending and conversion services, compatiblewith environmental, safety, security, andnonproliferation requirements. The planshall include a competitive process that theCorporation shall use for selecting a providerof such services, including the public solici-tation of proposals from the private sector toallow a determination of the least-cost ap-proach.

‘‘(d) MINIMIZATION OF IMPACT ON DOMESTICINDUSTRIES.—The Corporation shall seek tominimize the impact on domestic industries(including uranium mining) of the sale oflow-enriched uranium derived from highlyenriched uranium.

‘‘CHAPTER 25—PRIVATIZATION OF THECORPORATION

‘‘SEC. 1501. STRATEGIC PLAN FOR PRIVATIZA-TION.

‘‘(a) IN GENERAL.—Within 2 years after thetransition date, the Corporation shall pre-pare a strategic plan for transferring owner-ship of the Corporation to private investors.The Corporation shall revise the plan asneeded.

‘‘(b) CONSIDERATION OF ALTERNATIVEMEANS OF TRANSFERRING OWNERSHIP.—Theplan shall include consideration of alter-


2635

1992 T121.25native means for transferring ownership ofthe Corporation to private investors, includ-ing public stock offering, private placement,or merger or acquisition. The plan may callfor the phased transfer of ownership or forcomplete transfer at a single point of time. Ifthe plan calls for phased transfer of owner-ship, then—

‘‘(1) privatization shall be deemed to occurwhen 100 percent of ownership has beentransferred to private investors;

‘‘(2) prior to privatization, such stock shallbe nonvoting stock; and

‘‘(3) at the time of privatization, suchstock shall convert to voting stock.

‘‘(c) EVALUATION AND RECOMMENDATION.—The plan shall evaluate the relative meritsof the alternatives considered and the esti-mated return on the Government’s invest-ment in the Corporation achievable througheach alternative. The plan shall include theCorporation’s recommendation on its pre-ferred means of privatization.

‘‘(d) TRANSMITTAL.—The Corporation shalltransmit copies of the strategic plan for pri-vatization to the President and Congressupon completion.‘‘SEC. 1502. PRIVATIZATION.

‘‘(a) IMPLEMENTATION.—Subsequent totransmitting a plan for privatization pursu-ant to section 1501, and subject to sub-sections (b) and (c), the Corporation may im-plement the privatization plan if the Cor-poration determines, in consultation withappropriate agencies of the United States,that privatization will—

‘‘(1) result in a return to the United Statesat least equal to the net present value of theCorporation;

‘‘(2) not result in the Corporation beingowned, controlled, or dominated by an alien,a foreign corporation, or a foreign govern-ment;

‘‘(3) not be inimical to the health and safe-ty of the public or the common defense andsecurity; and

‘‘(4) provide reasonable assurance that ade-quate enrichment capacity will remainavailable to meet the domestic electric util-ity industry.

‘‘(b) REQUIREMENT OF PRESIDENTIAL AP-PROVAL.—The Corporation may not imple-ment the privatization plan without the ap-proval of the President.

‘‘(c) NOTIFICATION OF CONGRESS AND GAOEVALUATION.—The Corporation shall notifythe Congress of its intent to implement theprivatization plan. Within 30 days of notifi-cation, the Comptroller General shall submita report to Congress evaluating the extent towhich—

‘‘(1) the privatization plan would result inany ongoing obligation or undue cost to theFederal Government; and

‘‘(2) the revenues gained by the FederalGovernment under the privatization planwould represent at least the net presentvalue of the Corporation.

‘‘(d) PERIOD FOR CONGRESSIONAL REVIEW.—The Corporation may not implement the pri-vatization plan less than 60 days after notifi-cation of the Congress.

‘‘(e) DEPOSIT OF PROCEEDS.—Proceeds fromthe sale of capital stock of the Corporationunder this section shall be deposited in thegeneral fund of the Treasury.‘‘CHAPTER 26—AVLIS AND ALTERNATIVE

TECHNOLOGIES FOR URANIUM ENRICH-MENT

‘‘SEC. 1601. ASSESSMENT BY UNITED STATES EN-RICHMENT CORPORATION.

‘‘(a) IN GENERAL.—The Corporation shallprepare an assessment of the economic via-bility of proceeding with the commercializa-tion of AVLIS and alternative technologiesfor uranium enrichment in accordance withthis chapter. The assessment shall include—

‘‘(1) an evaluation of market conditions to-gether with a marketing strategy;

‘‘(2) an analysis of the economic viabilityof competing enrichment technologies;

‘‘(3) an identification of predeployment andcapital requirements for the commercializa-tion of AVLIS and alternative technologiesfor uranium enrichment;

‘‘(4) an estimate of potential earnings fromthe licensing of AVLIS and alternative tech-nologies for uranium enrichment to a privategovernment sponsored corporation;

‘‘(5) an analysis of outstanding and poten-tial patent and related claims with respectto AVLIS and alternative technologies foruranium enrichment, and a plan for resolv-ing such claims; and

‘‘(6) a contingency plan for providing en-riched uranium and related services in theevent that deployment of AVLIS and alter-native technologies for uranium enrichmentis determined not to be economically viable.

‘‘(b) DETERMINATION BY CORPORATION TOPROCEED WITH COMMERCIALIZATION OF AVLISOR ALTERNATIVE TECHNOLOGIES FOR URANIUMENRICHMENT.—The succeeding sections ofthis chapter shall apply only to the extentthe Corporation determines in its businessjudgment, on the basis of the assessmentprepared under subsection (a), to proceedwith the commercialization of AVLIS or al-ternative technologies for uranium enrich-ment.‘‘SEC. 1602. TRANSFER OF RIGHTS AND PROP-

ERTY TO UNITED STATES ENRICH-MENT CORPORATION.

‘‘(a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The Corporation shall have the exclusivecommercial right to deploy and use anyAVLIS patents, processes, and technical in-formation owned or controlled by the Gov-ernment, upon completion of a royaltyagreement with the Department.

‘‘(b) TRANSFER OF RELATED PROPERTY TOCORPORATION.—

‘‘(1) IN GENERAL.—To the extent requestedby the Corporation, the President shalltransfer without charge to the Corporationall of the Department’s right, title, or inter-est in and to property owned by the Depart-ment, or by the United States but under con-trol or custody of the Department, that is di-rectly related to and materially useful in theperformance of the Corporation’s purposesregarding AVLIS and alternative tech-nologies for uranium enrichment, includ-ing—

‘‘(A) facilities, equipment, and materialsfor research, development, and demonstra-tion activities; and

‘‘(B) all other facilities, equipment, mate-rials, processes, patents, technical informa-tion of any kind, contracts, agreements, andleases.

‘‘(2) EXCEPTION.—Facilities, real estate,improvements, and equipment related to thegaseous diffusion, and gas centrifuge, ura-nium enrichment programs of the Depart-ment shall not transfer under paragraph(1)(B).

‘‘(3) EXPIRATION OF TRANSFER AUTHORITY.—The President’s authority to transfer prop-erty under this subsection shall expire uponprivatization under section 1502.

‘‘(c) LIABILITY FOR PATENT AND RELATEDCLAIMS.—With respect to any right, title, orinterest provided to the Corporation undersubsection (a) or (b), the Corporation shallhave sole liability for any payments made orawards under section 157 b. (3), or any settle-ments or judgments involving claims for al-leged patent infringement. Any royaltyagreement under subsection (a) shall providefor a reduction of royalty payments to theDepartment to offset any payments, awards,settlements, or judgments under this sub-section.‘‘SEC. 1603. PREDEPLOYMENT ACTIVITIES BY

UNITED STATES ENRICHMENT COR-PORATION.

‘‘The Corporation may begin activitiesnecessary to prepare AVLIS or alternative

technologies for uranium enrichment forcommercialization including—

‘‘(1) completion of preapplication activitieswith the Nuclear Regulatory Commission;

‘‘(2) preparation of a transition plan tomove AVLIS or alternative technologies foruranium enrichment from the laboratory tothe marketplace;

‘‘(3) confirmation of technical perform-ance;

‘‘(4) validation of economic projections;‘‘(5) completion of feasibility and risk

studies;‘‘(6) initiation of preliminary plant design

and engineering; and‘‘(7) site selection, site characterization,

and environmental documentation activitieson the basis of site evaluations and rec-ommendations prepared for the Departmentby the Argonne National Laboratory.

‘‘SEC. 1604. UNITED STATES ENRICHMENT COR-PORATION SPONSORSHIP OF PRI-VATE FOR-PROFIT CORPORATION TOCONSTRUCT AVLIS AND ALTER-NATIVE TECHNOLOGIES FOR URA-NIUM ENRICHMENT.

‘‘(a) ESTABLISHMENT.—‘‘(1) IN GENERAL.—If the Corporation deter-

mines to proceed with the commercializationof AVLIS or alternative technologies for ura-nium enrichment under this chapter, theCorporation may provide for the establish-ment of a private for-profit corporation,which shall have as its initial purpose theconstruction of a uranium enrichment facil-ity using AVLIS technology or alternativetechnologies for uranium enrichment.

‘‘(2) PROCESS OF ORGANIZATION.—For pur-poses of the establishment of the private cor-poration under paragraph (1), the Corpora-tion shall appoint not less than 3 persons tobe incorporators. The incorporators so ap-pointed shall each sign the articles of incor-poration and shall serve as the initial boardof directors until the members of the 1st reg-ular board of directors shall have been ap-pointed and elected. Such incorporators shalltake whatever actions are necessary or ap-propriate to establish the private corpora-tion, including the filing of articles of incor-poration in such jurisdiction as theincorporators determine to be appropriate.The incorporators shall also develop a planfor the issuance by the private corporationof voting common stock to the public, whichplan shall be subject to the approval of theSecretary of the Treasury.

‘‘(b) LEGAL STATUS OF PRIVATE CORPORA-TION.—

‘‘(1) NOT FEDERAL AGENCY.—The privatecorporation established under subsection (a)shall not be an agency, instrumentality, orestablishment of the United States Govern-ment and shall not be a Government cor-poration or Government controlled corpora-tion.

‘‘(2) NO RECOURSE AGAINST UNITED STATES.—Obligations of the private corporation estab-lished under subsection (a) shall not be obli-gations of, or guaranteed as to principal orinterest by, the Corporation or the UnitedStates, and the obligations shall so plainlystate.

‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-tion under section 1491 of title 28, UnitedStates Code, shall be allowable against theUnited States based on the actions of theprivate corporation established under sub-section (a).

‘‘(c) TRANSACTIONS BETWEEN UNITED

STATES ENRICHMENT CORPORATION AND PRI-VATE CORPORATION.—

‘‘(1) GRANTS FROM USEC.—The Corporationmay make grants to the private corporation

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OCTOBER 5T121.25established under subsection (a) fromamounts available in the AVLIS Commer-cialization Fund. Such grants shall be usedby the private corporation to carry out anyremaining predeployment activity assignedto the private corporation by the Corpora-tion. Such grants may not be used for thecosts of constructing an AVLIS, or alter-native technologies for uranium enrichment,production facility or engaging in directlyrelated preconstruction activities (otherthan such assigned predeployment activi-ties). The aggregate amount of such grantsshall not exceed $364,000,000.

‘‘(2) LICENSING AGREEMENT.—The Corpora-tion shall license to the private corporationestablished under subsection (a) the rights,titles, and interests provided to the Corpora-tion under section 1602. The licensing agree-ment shall require the private corporation tomake periodic payments to the Corporationin an amount that is not less than the aggre-gate amounts paid by the Corporation duringthe period involved under subsections (a) and(c) of section 1602.

‘‘(3) PURCHASE AGREEMENT.—The Corpora-tion may enter into a commitment to pur-chase all enriched uranium produced at anAVLIS, or alternative technologies for ura-nium enrichment, facility of the private cor-poration established under subsection (a) ata price negotiated by the 2 corporationsthat—

‘‘(A) provides the private corporation witha reasonable return on its investment; and

‘‘(B) is less costly than enriched uraniumavailable from other sources.

‘‘(4) ADDITIONAL ASSISTANCE.—The Corpora-tion may provide to the private corporationestablished under subsection (a), on a reim-bursable basis, such additional personnel,services, and equipment as the 2 corpora-tions may determine to be appropriate.

‘‘SEC. 1605. AVLIS COMMERCIALIZATION FUNDWITHIN UNITED STATES ENRICH-MENT CORPORATION.

‘‘(a) ESTABLISHMENT.—The Corporationmay establish within the Corporation anAVLIS Commercialization Fund, which shallconsist of not more than $364,000,000 paidinto the Fund by the Corporation fromamounts provided in appropriation Acts forsuch purposes and from the retained earn-ings of the Corporation.

‘‘(b) EXPENDITURES FROM FUND.—Amountsin the AVLIS Commercialization Fund shallbe available for—

‘‘(1) expenses of the Corporation in prepar-ing the assessment under section 1601;

‘‘(2) expenses of predeployment activitiesunder section 1603; and

‘‘(3) grants to the private corporationunder section 1604.

‘‘(c) LIMITATIONS.—‘‘(1) EXCLUSIVE SOURCE OF FUNDS.—The Cor-

poration may not incur any obligation, orexpend any amount, with respect to AVLISor alternative technologies for uranium en-richment, except from amounts available inthe AVLIS Commercialization Fund.

‘‘(2) UNAVAILABLE FOR CONSTRUCTIONCOSTS.—No amount may be used from theAVLIS Commercialization Fund for the costsof constructing an AVLIS, or alternativetechnologies for uranium enrichment, pro-duction facility or engaging in directly re-lated preconstruction activities (other thanactivities specified in subsection (b)).

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated$364,000,000 from the Uranium EnrichmentSpecial Fund for purposes of this section.

‘‘(e) COST REPORT.—On the basis of the as-sessment under section 1601(a)(3), the Cor-poration shall submit to the Congress a re-port on the capital requirements for com-mercialization of AVLIS.

‘‘SEC. 1606. DEPARTMENT RESEARCH AND DEVEL-OPMENT ASSISTANCE.

‘‘If requested by the Corporation, the Sec-retary shall provide, on a reimbursable basis,research and development of AVLIS and al-ternative technologies for uranium enrich-ment.‘‘SEC. 1607. SITE SELECTION.

‘‘This chapter shall not prejudice consider-ation of the site of an existing uranium en-richment facility as a candidate site for fu-ture expansion or replacement of uraniumenrichment capacity through AVLIS or al-ternative technologies for uranium enrich-ment. Selection of a site for the AVLIS, oralternative technologies for uranium enrich-ment, facility shall be made on a competi-tive basis, taking into consideration eco-nomic performance, environmental compat-ibility, and use of any existing uranium en-richment facilities.‘‘SEC. 1608. EXCLUSION FROM PRICE-ANDERSON

COVERAGE.‘‘Section 170 shall not apply to any license

under section 53, 63, or 103 for a uranium en-richment facility constructed after the dateof the enactment of this title.’’.SEC. 902. CONFORMING AMENDMENTS AND RE-

PEALERS.(a) ATOMIC ENERGY ACT OF 1954.—(1) The Atomic Energy Act of 1954 (42

U.S.C. 2011 et seq.) is amended—(A) by inserting after ‘‘ATOMIC ENERGY

ACT OF 1954’’ the 1st place it appears the fol-lowing:

‘‘TABLE OF CONTENTS‘‘TITLE I—ATOMIC ENERGY’’;

and(B) by adding at the end of the table of

contents the following:‘‘TITLE II—UNITED STATES

ENRICHMENT CORPORATION‘‘CHAPTER 22—GENERAL PROVISIONS

‘‘Sec. 1201. Definitions.‘‘Sec. 1202. Purposes.‘‘CHAPTER 23—ESTABLISHMENT, POWERS, AND

ORGANIZATION OF CORPORATION

‘‘Sec. 1301. Establishment of the Corpora-tion.

‘‘Sec. 1302. Corporate offices.‘‘Sec. 1303. Powers of the Corporation.‘‘Sec. 1304. Board of Directors.‘‘Sec. 1305. Employees of the Corporation.‘‘Sec. 1306. Audits.‘‘Sec. 1307. Annual reports.‘‘Sec. 1308. Accounts.‘‘Sec. 1309. Obligations.‘‘Sec. 1310. Exemption from taxation and

payments in lieu of taxes.‘‘Sec. 1311. Cooperation with other agencies.‘‘Sec. 1312. Applicability of certain Federal

laws.‘‘Sec. 1313. Security.‘‘Sec. 1314. Control of information.‘‘Sec. 1315. Transition.‘‘Sec. 1316. Working Capital Account.

‘‘CHAPTER 24—RIGHTS, PRIVILEGES, ANDASSETS OF THE CORPORATION

‘‘Sec. 1401. Marketing and contracting au-thority.

‘‘Sec. 1402. Pricing.‘‘Sec. 1403. Leasing of gaseous diffusion fa-

cilities of department.‘‘Sec. 1404. Capital structure of Corporation.‘‘Sec. 1405. Patents and inventions.‘‘Sec. 1406. Liabilities.‘‘Sec. 1407. Transfer of uranium inventories.‘‘Sec. 1408. Purchase of highly enriched ura-

nium from former SovietUnion.

‘‘CHAPTER 25—PRIVATIZATION OF THECORPORATION

‘‘Sec. 1501. Strategic plan for privatization.‘‘Sec. 1502. Privatization.

‘‘CHAPTER 26—AVLIS AND ALTERNATIVETECHNOLOGIES FOR URANIUM ENRICHMENT

‘‘Sec. 1601. Assessment by United States En-richment Corporation.

‘‘Sec. 1602. Transfer of rights and propertyto United States EnrichmentCorporation.

‘‘Sec. 1603. Predeployment activities byUnited States Enrichment Cor-poration.

‘‘Sec. 1604. United States Enrichment Cor-poration sponsorship of privatefor-profit corporation to con-struct AVLIS and alternativetechnologies for uranium en-richment.

‘‘Sec. 1605. AVLIS Commercialization Fundwithin United States Enrich-ment Corporation.

‘‘Sec. 1606. Department research and devel-opment assistance.

‘‘Sec. 1607. Site selection.‘‘Sec. 1608. Exclusion from Price-Anderson

coverage.’’.

(2) Section 41 a. of the Atomic Energy Actof 1954 (42 U.S.C. 2061(a)) is amended—

(A) by striking ‘‘or’’;(B) by striking ‘‘pursuant to under this

Act’’ and inserting ‘‘under this title’’; and(C) by striking the period at the end and

inserting ‘‘; or (3) are owned by the UnitedStates Enrichment Corporation.’’.

(3) Section 53 c. (1) of the Atomic EnergyAct of 1954 (42 U.S.C. 2073(c)(1)) is amended—

(A) by striking ‘‘grant,’’ and inserting ‘‘orgrant’’; and

(B) by striking ‘‘or through the provisionof production or enrichment services’’ bothplaces it appears.

(4) Section 161 v. of the Atomic Energy Actof 1954 (42 U.S.C. 2201(v)) is amended to readas follows:

‘‘v. provide services in support of theUnited States Enrichment Corporation, ex-cept that the Secretary of Energy shall an-nually collect payments and other chargesfrom the Corporation sufficient to ensure re-covery of the costs (excluding depreciationand imputed interest on original plant in-vestments in the Department’s gaseous diffu-sion plants and costs under section 1403(d))incurred by the Department of Energy afterthe date of the enactment of the Energy Pol-icy Act of 1992 in performing such services;’’.

(5) Section 161 w. of the Atomic Energy Actof 1954 (42 U.S.C. 2201(w)) is amended—

(A) by striking the comma after ‘‘104 b.’’and inserting the following: ‘‘, or which oper-ates any facility regulated or certified undersection 1701 or 1702,’’; and

(B) by inserting ‘‘or certificates’’ after‘‘holders of, such licenses’’.

(6) Section 274 c. (1) of the Atomic EnergyAct of 1954 (42 U.S.C. 2021(c)(1)) is amendedby inserting ‘‘or any uranium enrichment fa-cility’’ before the semicolon at the end.

(7) Section 318(1) of the Atomic Energy Actof 1954 (42 U.S.C. 2286g(1)) is amended bystriking ‘‘or’’ at the end of subparagraph (B),by striking the period at the end of subpara-graph (C) and inserting ‘‘; or’’, and by addingat the end the following new subparagraph:

‘‘(D) any facility owned by the UnitedStates Enrichment Corporation.’’.

(8) The Atomic Energy Act of 1954 (42U.S.C. 2011 et seq.) is amended by insertingbefore the chapter heading for chapter 1 thefollowing new heading:

‘‘TITLE I—ATOMIC ENERGY’’.(b) GOVERNMENT CORPORATION CONTROL

PROVISIONS.—Section 9101(3) of title 31,United States Code is amended by adding atthe end the following:

‘‘(N) the Uranium Enrichment Corpora-tion.’’.

(c) ENERGY AND WATER DEVELOPMENT AP-PROPRIATION ACT, 1988.—Section 306 of the En-ergy and Water Development AppropriationAct, 1988 (Pub. L. 100–202; 101 Stat. 1329–126)is repealed.

(d) EXEMPTION FROM DEFICIT CONTROLACT.—Section 255(g)(1)(A) of the Balanced


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1992 T121.25Budget and Emergency Deficit Control Actof 1985 (2 U.S.C. 905(g)(1)(A)) is amended byinserting after the item relating to the Ten-nessee Valley Authority fund the followingnew item:

‘‘United States Enrichment Corporation;’’.SEC. 903. RESTRICTIONS ON NUCLEAR EXPORTS.

(a) FURTHER RESTRICTIONS.—(1) IN GENERAL.—Chapter 11 of the Atomic

Energy Act of 1954 (42 U.S.C. 2151 et seq.) isamended by adding at the end the followingnew section:

‘‘SEC. 134. FURTHER RESTRICTIONS ON EX-PORTS.—

‘‘a. The Commission may issue a licensefor the export of highly enriched uranium tobe used as a fuel or target in a nuclear re-search or test reactor only if, in addition toany other requirement of this Act, the Com-mission determines that—

‘‘(1) there is no alternative nuclear reactorfuel or target enriched in the isotope 235 toa lesser percent than the proposed export,that can be used in that reactor;

‘‘(2) the proposed recipient of that uraniumhas provided assurances that, whenever analternative nuclear reactor fuel or target canbe used in that reactor, it will use that alter-native in lieu of highly enriched uranium;and

‘‘(3) the United States Government is ac-tively developing an alternative nuclear re-actor fuel or target that can be used in thatreactor.

‘‘b. As used in this section—‘‘(1) the term ‘alternative nuclear reactor

fuel or target’ means a nuclear reactor fuelor target which is enriched to less than 20percent in the isotope U–235;

‘‘(2) the term ‘highly enriched uranium’means uranium enriched to 20 percent ormore in the isotope U–235; and

‘‘(3) a fuel or target ‘can be used’ in a nu-clear research or test reactor if—

‘‘(A) the fuel or target has been qualifiedby the Reduced Enrichment Research andTest Reactor Program of the Department ofEnergy, and

‘‘(B) use of the fuel or target will permitthe large majority of ongoing and plannedexperiments and isotope production to beconducted in the reactor without a large per-centage increase in the total cost of operat-ing the reactor.’’.

(2) CLERICAL AMENDMENT.—The table ofcontents of the Atomic Energy Act of 1954 isamended by adding at the end of the itemsrelating to chapter 11 the following newitem:‘‘Sec. 134. Further restrictions on exports.’’.

(b) REPORT TO CONGRESS.—(1) IN GENERAL.—Not later than 90 days

after the date of the enactment of this Act,the Chairman of the Nuclear RegulatoryCommission, after consulting with other rel-evant agencies, shall submit to the Congressa report detailing the current disposition ofprevious United States exports of highly en-riched uranium, including—

(A) their location;(B) whether they are irradiated;(C) whether they have been used for the

purpose stated in their export license; and(D) whether they have been used for an al-

ternative purpose and, if so, whether such al-ternative purpose has been explicitly ap-proved by the Commission.

(2) EXPORTS TO EURATOM.—To the maxi-mum extent possible, the report required byparagraph (1) shall include—

(A) exports of highly enriched uranium toEURATOM; and

(B) subsequent retransfers of such materialwithin EURATOM, without regard to the ex-tent of United States control over such re-transfers.SEC. 904. SEVERABILITY.

If any provision of this title, or the amend-ments made by this title, or the application

of any provision to any entity, person, or cir-cumstance, is for any reason adjudged by acourt of competent jurisdiction to be invalid,the remainder of this title, and the amend-ments made by this title, or its applicationshall not be affected.

TITLE X—REMEDIAL ACTION ANDURANIUM REVITALIZATION

Subtitle A—Remedial Action at ActiveProcessing Sites

SEC. 1001. REMEDIAL ACTION PROGRAM.(a) IN GENERAL.—Except as provided in

subsection (b), the costs of decontamination,decommissioning, reclamation, and other re-medial action at an active uranium or tho-rium processing site shall be borne by per-sons licensed under section 62 or 81 of theAtomic Energy Act of 1954 (42 U.S.C. 2091,2111) for any activity at such site which re-sults or has resulted in the production of by-product material.

(b) REIMBURSEMENT.—(1) IN GENERAL.—The Secretary of Energy

shall, subject to paragraph (2), reimburse atleast annually a licensee described in sub-section (a) for such portion of the costs de-scribed in such subsection as are—

(A) determined by the Secretary to be at-tributable to byproduct material generatedas an incident of sales to the United States;and

(B) either—(i) incurred by such licensee not later than

December 31, 2002; or(ii) placed in escrow not later than Decem-

ber 31, 2002, in accordance with a plan forsubsequent decontamination, decommission-ing, reclamation, and other remedial actionapproved by the Secretary.

(2) AMOUNT.—(A) TO INDIVIDUAL ACTIVE SITE URANIUM LI-

CENSEES.—The amount of reimbursementpaid to any licensee under paragraph (1)shall be determined by the Secretary in ac-cordance with regulations issued pursuant tosection 1002 and, for uranium mill tailingsonly, shall not exceed an amount equal to$5.50 multiplied by the dry short tons of by-product material located on the date of theenactment of this Act at the site of the ac-tivities of such licensee described in sub-section (a), and generated as an incident ofsales to the United States.

(B) TO ALL ACTIVE SITE URANIUM LICENS-EES.—Payments made under paragraph (1) toactive site uranium licensees shall not in theaggregate exceed $270,000,000.

(C) TO THORIUM LICENSEES.—Paymentsmade under paragraph (1) to the licensee ofthe active thorium site shall not exceed$40,000,000, and may only be made for off-sitedisposal.

(D) INFLATION ESCALATION INDEX.—Theamounts in subparagraphs (A), (B), and (C) ofthis paragraph shall be increased annuallybased upon an inflation index. The Secretaryshall determine the appropriate index toapply.

(E) ADDITIONAL REIMBURSEMENT.—(i) DETERMINATION OF EXCESS.—The Sec-

retary shall determine as of July 31, 2005,whether the amount authorized to be appro-priated pursuant to section 1003, when con-sidered with the $5.50 per dry short ton limiton reimbursement, exceeds the amount reim-bursable to the licensees under subsection(b)(2).

(ii) IN THE EVENT OF EXCESS.—If the Sec-retary determines under clause (i) that thereis an excess, the Secretary may allow reim-bursement in excess of $5.50 per dry short tonon a prorated basis at such sites where thecosts reimbursable under subsection (b)(1)exceed the $5.50 per dry short ton limitationdescribed in paragraph (2) of such subsection.

(3) BYPRODUCT LOCATION.—Notwithstandingthe requirement of paragraph (2)(A) that by-product material be located at the site on

the date of the enactment of this Act, by-product material moved from the site of theEdgemont Mill to a disposal site as the re-sult of the decontamination, decommission-ing, reclamation, and other remedial actionof such mill shall be eligible for reimburse-ment to the extent eligible under paragraph(1).SEC. 1002. REGULATIONS.

Within 180 days of the date of the enact-ment of this Act, the Secretary shall issueregulations governing reimbursement undersection 1001. An active uranium or thoriumprocessing site owner shall apply for reim-bursement hereunder by submitting a re-quest for the amount of reimbursement, to-gether with reasonable documentation insupport thereof, to the Secretary. Any suchrequest for reimbursement, supported by rea-sonable documentation, shall be approved bythe Secretary and reimbursement thereforshall be made in a timely manner subjectonly to the limitations of section 1001.SEC. 1003. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—There is authorized to beappropriated $310,000,000 to carry out thissubtitle. The aggregate amount authorizedin the preceding sentence shall be increasedannually as provided in section 1001, basedupon an inflation index to be determined bythe Secretary.

(b) SOURCE.—Funds described in subsection(a) shall be provided from the Fund estab-lished under section 1801 of the Atomic En-ergy Act of 1954.SEC. 1004. DEFINITIONS.

For purposes of this subtitle:(1) The term ‘‘active uranium or thorium

processing site’’ means—(A) any uranium or thorium processing

site, including the mill, containing byprod-uct material for which a license (issued bythe Nuclear Regulatory Commission or itspredecessor agency under the Atomic EnergyAct of 1954, or by a State as permitted undersection 274 of such Act (42 U.S.C. 2021)) forthe production at such site of any uraniumor thorium derived from ore—

(i) was in effect on January 1, 1978;(ii) was issued or renewed after January 1,

1978; or(iii) for which an application for renewal or

issuance was pending on, or after January 1,1978; and

(B) any other real property or improve-ment on such real property that is deter-mined by the Secretary or by a State as per-mitted under section 274 of the Atomic En-ergy Act of 1954 (42 U.S.C. 2021) to be—

(i) in the vicinity of such site; and(ii) contaminated with residual byproduct

material;(2) The term ‘‘byproduct material’’ has the

meaning given such term in section 11 e. (2)of the Atomic Energy Act of 1954, (42 U.S.C.2014(e)(2)); and

(3) The term ‘‘decontamination, decommis-sioning, reclamation, and other remedial ac-tion’’ means work performed prior to or sub-sequent to the date of the enactment of thisAct which is necessary to comply with allapplicable requirements of the Uranium MillTailings Radiation Control Act of 1978 (42U.S.C. 7901 et seq.), or where appropriate,with requirements established by a Statethat is a party to a discontinuance agree-ment under section 274 of the Atomic EnergyAct of 1954 (42 U.S.C. 2021).

Subtitle B—Uranium RevitalizationSEC. 1011. OVERFEED PROGRAM.

(a) URANIUM PURCHASES.—To the maximumextent permitted by sound business practice,the Corporation shall purchase uranium inaccordance with subsection (b) and overfeedit into the enrichment process to reduce theamount of power required to produce the en-riched uranium ordered by enrichment serv-

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OCTOBER 5T121.25ices customers, taking into account costs as-sociated with depleted tailings.

(b) USE OF DOMESTIC URANIUM.—Uraniumpurchased by the Corporation for purposes ofthis section shall be of domestic origin andpurchased from domestic uranium producersto the extent permitted under the GeneralAgreement on Tariffs and Trade and theUnited States-Canada Free Trade Agree-ment.SEC. 1012. NATIONAL STRATEGIC URANIUM RE-

SERVE.There is hereby established the National

Strategic Uranium Reserve under the direc-tion and control of the Secretary. The Re-serve shall consist of natural uranium anduranium equivalents contained in stockpilesor inventories currently held by the UnitedStates for defense purposes. Effective on thedate of the enactment of this Act and for 6years thereafter, use of the Reserve shall berestricted to military purposes and govern-ment research. Use of the Department of En-ergy’s stockpile of enrichment tails existingon the date of the enactment of this Actshall be restricted to military purposes for 6years thereafter.SEC. 1013. SALE OF REMAINING DOE INVEN-

TORIES.The Secretary, after making the transfer

required under section 1407 of the AtomicEnergy Act of 1954, may sell, from time totime, portions of the remaining inventoriesof raw or low-enriched uranium of the De-partment that are not necessary to nationalsecurity needs, to the Corporation, at a fairmarket price. Sales under this section maybe made only if such sales will not have asubstantial adverse impact on the domesticuranium mining industry. Proceeds fromsales under this subsection shall be depositedinto the general fund of the United StatesTreasury.SEC. 1014. RESPONSIBILITY FOR THE INDUSTRY.

(a) CONTINUING SECRETARIAL RESPONSIBIL-ITY.—The Secretary shall have a continuingresponsibility for the domestic uranium in-dustry to encourage the use of domestic ura-nium. The Secretary, in fulfilling this re-sponsibility, shall not use any supervisoryauthority over the Corporation. The Sec-retary shall report annually to the appro-priate committees of Congress on actiontaken with respect to the domestic uraniumindustry, including action to promote the ex-port of domestic uranium pursuant to sub-section (b).

(b) ENCOURAGE EXPORT.—The Department,with the cooperation of the Department ofCommerce, the United States Trade Rep-resentative and other governmental organi-zations, shall encourage the export of domes-tic uranium. Within 180 days after the dateof the enactment of this Act, the Secretaryshall develop recommendations and imple-ment government programs to promote theexport of domestic uranium.SEC. 1015. ANNUAL URANIUM PURCHASE RE-

PORTS.(a) IN GENERAL.—By January 1 of each

year, the owner or operator of any civiliannuclear power reactor shall report to theSecretary, acting through the Administratorof the Energy Information Administration,for activities of the previous fiscal year—

(1) the country of origin and the seller ofany uranium or enriched uranium purchasedor imported into the United States either di-rectly or indirectly by such owner or opera-tor; and

(2) the country of origin and the seller ofany enrichment services purchased by suchowner or operator.

(b) CONGRESSIONAL ACCESS.—The informa-tion provided to the Secretary pursuant tothis section shall be made available to theCongress by March 1 of each year.SEC. 1016. URANIUM INVENTORY STUDY.

Within 1 year after the date of the enact-ment of this Act, the Secretary shall submit

to the Congress a study and report that in-cludes—

(1) a comprehensive inventory of all Gov-ernment owned uranium or uranium equiva-lents, including natural uranium, depletedtailings, low-enriched uranium, and highlyenriched uranium available for conversion tocommercial use;

(2) a plan for the conversion of inventoriesof foreign and domestic highly enriched ura-nium to low-enriched uranium for commer-cial use;

(3) an estimation of the potential need ofthe United States for inventories of highlyenriched uranium;

(4) an analysis and summary of techno-logical requirements and costs associatedwith converting highly enriched uranium tolow-enriched uranium, including the con-struction of facilities if necessary;

(5) an estimation of potential net proceedsfrom the conversion and sale of highly en-riched uranium;

(6) recommendations for implementing aplan to convert highly enriched uranium tolow-enriched uranium; and

(7) recommendations for the future use anddisposition of such inventories.SEC. 1017. REGULATORY TREATMENT OF URA-

NIUM PURCHASES.(a) ENCOURAGEMENT.—The Secretary shall

encourage States and utility regulatory au-thorities to take into consideration theachievement of the objectives and purposesof this subtitle, including the national needto avoid dependence on imports, when con-sidering whether to allow the owner or oper-ator of any electric power plant to recover inits rates and charges to customers any costof purchase of domestic uranium, enricheduranium, or enrichment services from a non-affiliated seller greater than the cost of non-domestic uranium, enriched uranium or en-richment services.

(b) REPORT.—Within 1 year after the dateof the enactment of this Act, and annuallythereafter, the Secretary shall report to theCongress on the progress of the Secretary inencouraging actions by State regulatory au-thorities pursuant to subsection (a). Such re-port shall include detailed information onprograms initiated by the Secretary to en-courage appropriate State regulatory actionand recommendations, if any, on further ac-tion that could be taken by the Secretary,other Federal agencies, or the Congress inorder to further the purposes of this subtitle.

(c) SAVINGS PROVISION.—This section maynot be construed to authorize the Secretaryto take any action in violation of the generalAgreement on Tariffs and Trade or theUnited States-Canada Free Trade Agree-ment.SEC. 1018. DEFINITIONS.

For purposes of this subtitle:(1) The term ‘‘Corporation’’ means the

United States Enrichment Corporation es-tablished under section 1301 of the AtomicEnergy Act of 1954, as added by this Act.

(2) The term ‘‘country of origin’’ means—(A) with respect to uranium, that country

where the uranium was mined;(B) with respect to enriched uranium, that

country where the uranium was mined andenriched; or

(C) with respect to enrichment services,that country where the enrichment serviceswere performed.

(3) The term ‘‘domestic origin’’ refers toany uranium that has been mined in theUnited States including uranium recoveredfrom uranium deposits in the United Statesby underground mining, open-pit mining,strip mining, in situ recovery, leaching, andion recovery, or recovered from phosphoricacid manufactured in the United States.

(4) The term ‘‘domestic uranium producer’’means a person or entity who produces do-

mestic uranium and who has, to the extentrequired by State and Federal agencies hav-ing jurisdiction, licenses and permits for theoperation, decontamination, decommission-ing, and reclamation of sites, structures andequipment.

(5) The term ‘‘non-affiliated’’ refers to aseller who does not control, and is not con-trolled by or under common control with,the buyer.

(6) The term ‘‘overfeed’’ means to use ura-nium in the enrichment process in excess ofthe amount required at the transactionaltails assay.

(7) The term ‘‘utility regulatory author-ity’’ means any State agency or Federalagency that has ratemaking authority withrespect to the sale of electric energy by anyelectric utility or independent power pro-ducer. For purposes of this paragraph, theterms ‘‘electric utility’’, ‘‘State agency’’,‘‘Federal agency’’, and ‘‘ratemaking author-ity’’ have the respective meanings givensuch terms in section 3 of the Public UtilityRegulatory Policies Act of 1978.

Subtitle C—Remedial Action at InactiveProcessing Sites

SEC. 1031. URANIUM MILL TAILINGS RADIATIONCONTROL ACT EXTENSION.

Section 112(a) of the Uranium Mill TailingsRadiation Control Act of 1978 (42 U.S.C.7922(a)) is amended by striking ‘‘1994’’ and in-serting ‘‘1996’’.

TITLE XI—URANIUM ENRICHMENTHEALTH, SAFETY, AND ENVIRONMENTISSUES

SEC. 1101. URANIUM ENRICHMENT HEALTH,SAFETY, AND ENVIRONMENT ISSUES.

The Atomic Energy Act of 1954 (42 U.S.C.2011 et seq.), as amended by title IX of thisAct, is further amended by adding at the endof title II the following:

‘‘CHAPTER 27—LICENSING AND REGULA-TION OF URANIUM ENRICHMENT FA-CILITIES

‘‘SEC. 1701. GASEOUS DIFFUSION FACILITIES.

‘‘(a) ISSUANCE OF STANDARDS.—Within 2years after the date of the enactment of thistitle, the Nuclear Regulatory Commissionshall establish by regulation such standardsas are necessary to govern the gaseous diffu-sion uranium enrichment facilities of theDepartment in order to protect the publichealth and safety from radiological hazardand provide for the common defense and se-curity. Regulations promulgated pursuant tothis subsection shall, among other things,require that adequate safeguards (within themeaning of section 147) are in place.

‘‘(b) ANNUAL REPORT.—‘‘(1) IN GENERAL.—The Nuclear Regulatory

Commission, in consultation with the De-partment and the Environmental ProtectionAgency, shall report at least annually to theCongress on the status of health, safety, andenvironmental conditions at the gaseous dif-fusion uranium enrichment facilities of theDepartment.

‘‘(2) REQUIRED DETERMINATION.—Such re-port shall include a determination regardingwhether the gaseous diffusion uranium en-richment facilities of the Department are incompliance with the standards establishedunder subsection (a) and all applicable laws.

‘‘(c) CERTIFICATION PROCESS.—‘‘(1) ESTABLISHMENT.—The Nuclear Regu-

latory Commission shall establish a certifi-cation process to ensure that the Corpora-tion complies with standards establishedunder subsection (a).

‘‘(2) ANNUAL APPLICATION FOR CERTIFICATEOF COMPLIANCE.—The Corporation shall applyat least annually to the Nuclear RegulatoryCommission for a certificate of complianceunder paragraph (1). The Nuclear Regulatory


2639

1992 T121.25Commission, in consultation with the Envi-ronmental Protection Agency, shall reviewany such application and any determinationmade under subsection (b)(2) shall be basedon the results of any such review.

‘‘(3) TREATMENT OF CERTIFICATE OF COMPLI-ANCE.—The requirement for a certificate ofcompliance under paragraph (1) shall be inlieu of any requirement for a license for anygaseous diffusion facility of the Departmentleased by the Corporation.

‘‘(4) NRC REVIEW.—‘‘(A) IN GENERAL.— The Nuclear Regu-

latory Commission, in consultation with theEnvironmental Protection Agency, shall re-view the operations of the Corporation withrespect to any gaseous diffusion uranium en-richment facilities of the Department leasedby the Corporation to ensure that publichealth and safety are adequately protected.

‘‘(B) ACCESS TO FACILITIES AND INFORMA-TION.—The Corporation and the Departmentshall cooperate fully with the Nuclear Regu-latory Commission and the EnvironmentalProtection Agency and shall provide the Nu-clear Regulatory Commission and the Envi-ronmental Protection Agency with the readyaccess to the facilities, personnel, and infor-mation the Nuclear Regulatory Commissionand the Environmental Protection Agencyconsider necessary to carry out their respon-sibilities under this subsection. A contractoroperating a Corporation facility for the Cor-poration shall provide the Nuclear Regu-latory Commission and the EnvironmentalProtection Agency with ready access to thefacilities, personnel, and information of thecontractor as the Nuclear Regulatory Com-mission and the Environmental ProtectionAgency consider necessary to carry out theirresponsibilities under this subsection.

‘‘(C) LIMITATION.—The Nuclear RegulatoryCommission shall limit its finding undersubsection (b)(2) to a determination ofwhether the facilities are in compliance withthe standards established under subsection(a).

‘‘(d) REQUIREMENT FOR OPERATION.—Thegaseous diffusion uranium enrichment facili-ties of the Department may not be operatedby the Corporation unless the Nuclear Regu-latory Commission, in consultation with theEnvironmental Protection Agency, makes adetermination of compliance under sub-section (b) or approves a plan prepared bythe Department for achieving compliance re-quired under subsection (b).‘‘SEC. 1702. LICENSING OF OTHER TECH-

NOLOGIES.‘‘(a) IN GENERAL.—Corporation facilities

using alternative technologies for uraniumenrichment, other than AVLIS, shall be li-censed under sections 53 and 63.

‘‘(b) COSTS FOR DECONTAMINATION AND DE-COMMISSIONING.—The Corporation shall pro-vide for the costs of decontamination and de-commissioning of any Corporation facilitiesdescribed in subsection (a) in accordancewith the requirements of the amendmentsmade by section 5 of the Solar, Wind, Waste,and Geothermal Power Production Act of1990.‘‘SEC. 1703. REGULATION OF RESTRICTED DATA.

‘‘The Corporation shall be subject to thisAct with respect to the use of, or access to,Restricted Data to the same extent as anyprivate corporation.

‘‘CHAPTER 28—DECONTAMINATION ANDDECOMMISSIONING

‘‘SEC. 1801. URANIUM ENRICHMENT DECON-TAMINATION AND DECOMMISSION-ING FUND.

‘‘(a) ESTABLISHMENT.—There is establishedin the Treasury of the United States an ac-count to be known as the Uranium Enrich-ment Decontamination and Decommission-ing Fund (referred to in this chapter as the‘Fund’). The Fund, and any amounts depos-

ited in it, including any interest earnedthereon, shall be available to the Secretarysubject to appropriations for the exclusivepurpose of carrying out this chapter.

‘‘(b) ADMINISTRATION.—‘‘(1) IN GENERAL.—The Secretary of the

Treasury shall hold the Fund and, after con-sultation with the Secretary, annually re-port to the Congress on the financial condi-tion and operations of the Fund during thepreceding fiscal year.

‘‘(2) INVESTMENTS.—The Secretary of theTreasury shall invest amounts containedwithin the Fund in obligations of the UnitedStates—

‘‘(A) having maturities determined by theSecretary of the Treasury to be appropriatefor what the Department determines to bethe needs of the Fund; and

‘‘(B) bearing interest at rates determinedto be appropriate by the Secretary of theTreasury, taking into consideration the cur-rent average market yield on outstandingmarketable obligations of the United Stateswith remaining periods to maturity com-parable to these obligations.‘‘SEC. 1802. DEPOSITS.

‘‘(a) AMOUNT.—The Fund shall consist ofdeposits in the amount of $480,000,000 per fis-cal year (to be annually adjusted for infla-tion using the Consumer Price Index for all-urban consumers published by the Depart-ment of Labor) as provided in this section.

‘‘(b) SOURCE.—Deposits described in sub-section (a) shall be from the followingsources:

‘‘(1) Sums collected pursuant to subsection(c).

‘‘(2) Appropriations made pursuant to sub-section (d).

‘‘(c) SPECIAL ASSESSMENT.—The Secretaryshall collect a special assessment from do-mestic utilities. The total amount collectedfor a fiscal year shall not exceed $150,000,000(to be annually adjusted for inflation usingthe Consumer Price Index for all-urban con-sumers published by the Department ofLabor). The amount collected from each util-ity pursuant to this subsection for a fiscalyear shall be in the same ratio to theamount required under subsection (a) to bedeposited for such fiscal year as the totalamount of separative work units such utilityhas purchased from the Department of En-ergy for the purpose of commercial elec-tricity generation, before the date of the en-actment of this title, bears to the totalamount of separative work units purchasedfrom the Department of Energy for all pur-poses (including units purchased or producedfor defense purposes) before the date of theenactment of this title. For purposes of thissubsection—

‘‘(1) a utility shall be considered to havepurchased a separative work unit from theDepartment if such separative work unit wasproduced by the Department, but purchasedby the utility from another source; and

‘‘(2) a utility shall not be considered tohave purchased a separative work unit fromthe Department if such separative work unitwas purchased by the utility, but sold to an-other source.

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Fund, for the period encompassing 15years after the date of the enactment of thistitle, such sums as are necessary to ensurethat the amount required under subsection(a) is deposited for each fiscal year.

‘‘(e) TERMINATION OF ASSESSMENTS.—Thecollection of amounts under subsection (c)shall cease after the earlier of—

‘‘(1) 15 years after the date of the enact-ment of this title; or

‘‘(2) the collection of $2,250,000,000 (to beannually adjusted for inflation using theConsumer Price Index for all-urban consum-

ers published by the Department of Labor)under such subsection.

‘‘(f) CONTINUATION OF DEPOSITS.—Except asprovided in subsection (e), deposits shall con-tinue to be made into the Fund under sub-section (d) for the period specified in suchsubsection.

‘‘(g) TREATMENT OF ASSESSMENT.—Any spe-cial assessment levied under this section ondomestic utilities for the decontaminationand decommissioning of the Department’sgaseous diffusion enrichment facilities shallbe deemed a necessary and reasonable cur-rent cost of fuel and shall be fully recover-able in rates in all jurisdictions in the samemanner as the utility’s other fuel cost.‘‘SEC. 1803. DEPARTMENT FACILITIES.

‘‘(a) STUDY BY NATIONAL ACADEMY OFSCIENCES.—The National Academy ofSciences shall conduct a study and providerecommendations for reducing costs associ-ated with decontamination and decommis-sioning, and shall report its findings to theCongress within 3 years after the date of theenactment of this title. Such report shall in-clude a determination of the decontamina-tion and decommissioning required for eachfacility, shall identify alternative methods,using different technologies, shall includesite-specific surveys of the actual contami-nation, and shall provide estimated costs ofthose activities.

‘‘(b) PAYMENT OF DECONTAMINATION ANDDECOMMISSIONING COSTS.—The costs of all de-contamination and decommissioning activi-ties of the Department shall be paid from theFund until such time as the Secretary cer-tifies and the Congress concurs, by law, thatsuch activities are complete.

‘‘(c) PAYMENT OF REMEDIAL ACTIONCOSTS.—The annual cost of remedial actionat the Department’s gaseous diffusion facili-ties shall be paid from the Fund to the ex-tent the amount available in the Fund is suf-ficient. To the extent the amount in theFund is insufficient, the Department shall beresponsible for the cost of remedial action.No provision of this title may be construedto relieve in any way the responsibility or li-ability of the Department for remedial ac-tion under applicable Federal and State lawsand regulations.‘‘SEC. 1804. EMPLOYEE PROVISIONS.

‘‘All laborers and mechanics employed bycontractors or subcontractors in the per-formance of decontamination or decommis-sioning of uranium enrichment facilities ofthe Department shall be paid wages at ratesnot less than those prevailing on projects ofa similar character in the locality as deter-mined by the Secretary of Labor in accord-ance with the Act of March 3, 1931 (known asthe Davis-Bacon Act) (40 U.S.C. 276a et seq.).The Secretary of Labor shall have, with re-spect to the labor standards specified in thissection, the authority and functions setforth in Reorganization Plan Numbered 14 of1950 (15 F.R. 3176, 64 Stat. 1267) and the Actof June 13, 1934 (40 U.S.C. 276c). This sectionmay not be construed to require the con-tracting out of activities associated with thedecontamination or decommissioning of ura-nium enrichment facilities.‘‘SEC. 1805. REPORTS TO CONGRESS.

‘‘Within 3 years after the date of the enact-ment of this title, and at least once every 3years thereafter, the Secretary shall reportto the Congress on progress under this chap-ter. The 5th report submitted under this sec-tion shall contain recommendations of theSecretary for the reauthorization of the pro-gram and Fund under this title.’’.SEC. 1102. LICENSING OF AVLIS.

The last sentence of section 11 v. of theAtomic Energy Act of 1954 (42 U.S.C. 2014(v))is amended to read as follows: ‘‘Except withrespect to the export of a uranium enrich-ment production facility or the construction

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OCTOBER 5T121.25and operation of a uranium enrichment pro-duction facility using Atomic Vapor LaserIsotope Separation technology, such term asused in chapters 10 and 16 shall not includeany equipment or device (or important com-ponent part especially designed for suchequipment or device) capable of separatingthe isotopes of uranium or enriching ura-nium in the isotope 235.’’.SEC. 1103. TABLE OF CONTENTS.

The table of contents for title II of theAtomic Energy Act of 1954, as added by titleIX of this Act, is amended by adding at theend the following:‘‘CHAPTER 27—LICENSING AND REGULATION OF

URANIUM ENRICHMENT FACILITIES

‘‘Sec. 1701. Gaseous diffusion facilities.‘‘Sec. 1702. Licensing of other technologies.‘‘Sec. 1703. Regulation of restricted data.

‘‘CHAPTER 28—DECONTAMINATION ANDDECOMMISSIONING

‘‘Sec. 1801. Uranium Enrichment Decon-tamination and Decommission-ing Fund.

‘‘Sec. 1802. Deposits.‘‘Sec. 1803. Department facilities.‘‘Sec. 1804. Employee provisions.‘‘Sec. 1805. Reports to Congress.’’.

TITLE XII—RENEWABLE ENERGYSEC. 1201. PURPOSES.

The purposes of this title are to promote—(1) increases in the production and utiliza-

tion of energy from renewable energy re-sources;

(2) further advances of renewable energytechnologies; and

(3) exports of United States renewable en-ergy technologies and services.SEC. 1202. DEMONSTRATION AND COMMERCIAL

APPLICATION PROJECTS FOR RE-NEWABLE ENERGY AND ENERGY EF-FICIENCY TECHNOLOGIES.

(a) DEMONSTRATION AND COMMERCIAL AP-PLICATION PROJECTS.—Section 6 of the Re-newable Energy and Energy Efficiency Tech-nology Competitiveness Act of 1989 (42 U.S.C.12005) is amended to read as follows:‘‘SEC. 6. DEMONSTRATION AND COMMERCIAL AP-

PLICATION PROJECTS.‘‘(a) PURPOSE.—The purpose of this section

is to direct the Secretary to further the com-mercialization of renewable energy and en-ergy efficiency technologies through a five-year program.

‘‘(b) DEMONSTRATION AND COMMERCIAL AP-PLICATION PROJECTS.—

‘‘(1) ESTABLISHMENT.—(A) The Secretaryshall solicit proposals for demonstration andcommercial application projects for renew-able energy and energy efficiency tech-nologies pursuant to subsection (c). Suchprojects may include projects for—

‘‘(i) the production and sale of electricity,thermal energy, or other forms of energyusing a renewable energy technology;

‘‘(ii) increasing the efficiency of energyuse; and

‘‘(iii) improvements in, or expansion of, fa-cilities for the manufacture of renewable en-ergy or energy efficiency technologies.

‘‘(B) REQUIREMENTS.—Each project selectedunder this section shall include at least onefor-profit business. Activities supportedunder this section shall be performed in theUnited States. Each project under this sec-tion shall require the manufacture and re-production substantially within the UnitedStates for commercial sale of any inventionor product that may result from the project.

‘‘(2) FORMS OF FINANCIAL ASSISTANCE.—(A)In supporting projects selected under sub-section (c), the Secretary may choose fromamong the forms of agreements described insection 3001 of the Energy Policy Act of 1992.

‘‘(B) In supporting projects selected undersubsection (c), the Secretary may also enterinto agreements with private lenders to pay

a portion of the interest on loans made forsuch projects.

‘‘(3) COST SHARING.—Cost sharing forprojects under this section shall be con-ducted according to the procedures describedin section 3002(b) and (c) of the Energy Pol-icy Act of 1992.

‘‘(4) ADVISORY COMMITTEE.—(A) The Sec-retary shall establish an Advisory Commit-tee on Demonstration and Commercial Ap-plication of Renewable Energy and EnergyEfficiency Technologies (in this Act referredto as the ‘Advisory Committee’) to advisethe Secretary on the development of the so-licitation and evaluation criteria forprojects under this section, and on otherwisecarrying out his responsibilities under thissection. The Secretary shall appoint mem-bers to the Advisory Committee, includingat least one member representing—

‘‘(i) the Secretary of Commerce;‘‘(ii) the National Laboratories of the De-

partment of Energy;‘‘(iii) the Solar Energy Research Institute;‘‘(iv) the Electric Power Research Insti-

tute;‘‘(v) the Gas Research Institute;‘‘(vi) the National Institute of Building

Sciences;‘‘(vii) the National Institute of Standards

and Technology;‘‘(viii) associations of firms in the major

renewable energy manufacturing industries;and

‘‘(ix) associations of firms in the major en-ergy efficiency manufacturing industries.

Nothing in this subparagraph shall be con-strued to require the Secretary to reestab-lish the Advisory Committee in place underthis subsection as of the date of enactmentof the Energy Policy Act of 1992, or to per-form again any duties performed by such ad-visory committee before such date of enact-ment.

‘‘(B) Not later than 18 months after thedate of the enactment of the Energy PolicyAct of 1992, the Advisory Committee shallprovide the Secretary with a report assessingthe implementation of the program underthis section, including specific recommenda-tions for improvements or changes to theprogram and solicitation process. The Sec-retary shall transmit such report and, if any,the Secretary’s recommendations to theCongress.

‘‘(c) SELECTION OF PROJECTS.—‘‘(1) SOLICITATION.—(A) Not later than 9

months after the date of the enactment ofthe Energy Policy Act of 1992, the Secretaryshall solicit proposals for projects under thissection. The Secretary may make additionalsolicitations for proposals if the Secretarydetermines that such solicitations are nec-essary to carry out this section.

‘‘(B) A solicitation for proposals under thisparagraph shall establish a closing date forreceipt of proposals. The Secretary may, ifnecessary, extend the closing date for receiptof proposals for a period not to exceed 90days.

‘‘(C) Each solicitation under this para-graph shall include a description of the cri-teria, developed by the Secretary, accordingto which proposals will be evaluated. In de-veloping such criteria, the Secretary shallconsider—

‘‘(i) the need for Federal involvement tocommercialize the technology or speed com-mercialization of the technology;

‘‘(ii) the potential for the technology tohave significant market penetration;

‘‘(iii) the potential energy efficiency gainsor energy supply contributions of the tech-nology;

‘‘(iv) potential environmental improve-ments associated with the technology;

‘‘(v) the export potential of the technology;

‘‘(vi) the likelihood that the proposal istechnically sufficient to achieve the objec-tive of the solicitation;

‘‘(vii) the degree to which non-Federal fi-nancial participation is involved in the pro-posal;

‘‘(viii) the business and financial history ofthe proposer or proposers; and

‘‘(ix) any other factor the Secretary con-siders appropriate.

‘‘(2) PROJECT TECHNOLOGIES.—Projectsunder this section may include the followingtechnologies:

‘‘(A) Conversion of cellulosic biomass toliquid fuels.

‘‘(B) Ethanol and ethanol byproduct proc-esses.

‘‘(C) Direct combustion or gasification ofbiomass.

‘‘(D) Biofuels energy systems.‘‘(E) Photovoltaics, including utility scale

and remote applications.‘‘(F) Solar thermal, including solar water

heating.‘‘(G) Wind energy.‘‘(H) High temperature and low tempera-

ture geothermal energy.‘‘(I) Fuel cells, including transportation

and stationary applications.‘‘(J) Nondefense high-temperature

superconducting electricity technology.‘‘(K) Source reduction technology.‘‘(L) Factory-made housing.‘‘(M) Advanced district cooling.‘‘(3) PROJECT SELECTION.—The Secretary

shall, within 120 days after the closing dateestablished under paragraph (1)(B), selectproposals to receive financial assistanceunder this section. In selecting proposalsunder this paragraph, the Secretary shall—

‘‘(A) consider each proposal’s ability tomeet the criteria developed pursuant toparagraph (1)(C); and

‘‘(B) attempt to achieve technological andgeographic diversity.

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$50,000,000 for fiscal year 1994.

(b) NATIONAL GOALS AND MULTIYEAR FUND-ING FOR ALCOHOL FROM BIOMASS.—Section4(a) of the Renewable Energy and Energy Ef-ficiency Technology Competitiveness Act of1989 (42 U.S.C. 12003(a)) is amended—

(1) by redesignating paragraph (4) as para-graph (5);

(2) by inserting after paragraph (3) the fol-lowing new paragraph:

‘‘(4) ALCOHOL FROM BIOMASS.—(A) In gen-eral, the goal of the Alcohol From BiomassProgram shall be to advance research and de-velopment to a point where alcohol from bio-mass technology is cost-competitive withconventional hydrocarbon transportationfuels, and to promote the integration of thistechnology into the transportation fuel sec-tor of the economy.

‘‘(B)(i) Specific goals for producing ethanolfrom biomass shall be to—

‘‘(I) reduce the cost of alcohol to 70 centsper gallon;

‘‘(II) improve the overall biomass carbo-hydrate conversion efficiency to 91 percent;

‘‘(III) reduce the capital cost component ofthe cost of alcohol to 23 cents per gallon; and

‘‘(IV) reduce the operating and mainte-nance component of the cost of alcohol to 47cents per gallon.

‘‘(ii) Specific goals for producing methanolfrom biomass shall be to—

‘‘(I) reduce the cost of alcohol to 47 centsper gallon; and

‘‘(II) reduce the capital component of thecost of alcohol to 16 cents per gallon.’’; and

(3) in paragraph (5), as so redesignated byparagraph (1) of this subsection, by inserting‘‘Biodiesel Energy Systems,’’ after ‘‘BiofuelsEnergy Systems,’’.


2641

1992 T121.25(c) NATIONAL RENEWABLE ENERGY AND EN-

ERGY EFFICIENCY MANAGEMENT PLAN.—Sec-tion 9(b) of the Renewable Energy and En-ergy Efficiency Technology CompetitivenessAct of 1989 (42 U.S.C. 12008(b)) is amended—

(1) in paragraph (1) by inserting ‘‘three-year’’ before ‘‘management plan’’; and

(2) by striking paragraph (5) and insertingin lieu thereof the following new paragraphs:

‘‘(5) In addition, the Plan shall—‘‘(A) contain a detailed assessment of pro-

gram needs, objectives, and priorities foreach of the programs authorized under sec-tion 6 of this Act;

‘‘(B) use a uniform prioritization meth-odology to facilitate cost-benefit analyses ofproposals in various program areas;

‘‘(C) establish milestones for setting forthspecific technology transfer activities undereach program area;

‘‘(D) include annual and five-year cost esti-mates for individual programs under thisAct; and

‘‘(E) identify program areas for whichfunding levels have been changed from theprevious year’s Plan.

‘‘(6) Within one year after the date of theenactment of the Energy Policy Act of 1992,the Secretary shall submit a revised manage-ment plan under this section to Congress.Thereafter, the Secretary shall submit amanagement plan every three years at thetime of submittal of the President’s annualbudget submission to the Congress.’’.

(d) CONFORMING AMENDMENTS.—The Renew-able Energy and Energy Efficiency Tech-nology Competitiveness Act of 1989 (42 U.S.C.12001 et seq.) is further amended—

(1) in section 2(b)—(A) by striking ‘‘authority contained in’’

and all that follows through ‘‘applicable tothe Secretary’’ and inserting in lieu thereof‘‘section 3001 of the Energy Policy Act of1992’’; and

(B) by striking ‘‘and demonstration’’ andinserting in lieu thereof ‘‘demonstration, andcommercial application’’;

(2) in section 2(b)(4)—(A) by striking ‘‘research and develop-

ment’’; and(B) by striking ‘‘joint ventures’’ and in-

serting in lieu thereof ‘‘demonstration andcommercial application projects’’;

(3) in section 2(c), by striking ‘‘the author-ity contained in’’ and all that follows and in-serting in lieu thereof ‘‘section 3001 of theEnergy Policy Act of 1992, is authorized anddirected to—

‘‘(1) pursue a program of research, develop-ment, demonstration, and commercial appli-cation with the private sector, to achieve thepurpose of this Act, including the goals es-tablished under section 4; and

‘‘(2) undertake demonstration and commer-cial application projects as provided in sec-tion 6.’’;

(4) in section 3—(A) by striking paragraph (2);(B) by redesignating paragraphs (3), (4),

and (5) as paragraphs (2), (3), and (4), respec-tively;

(C) in paragraph (4), as so redesignated bysubparagraph (B) of this paragraph—

(i) by striking ‘‘joint venture’’ and insert-ing in lieu thereof ‘‘demonstration and com-mercial application project’’;

(ii) by striking ‘‘venture’’ and inserting inlieu thereof ‘‘demonstration and commercialapplication project’’; and

(iii) by striking ‘‘and ’’ at the end thereof;and

(D) by inserting after paragraph (4), as soredesignated by subparagraph (B) of thisparagraph, the following new paragraph:

‘‘(5) the term ‘source reduction’ means anypractice which—

‘‘(A) reduces the amount of any hazardoussubstance, pollutant, or contaminant enter-ing any waste stream or otherwise released

into the environment, including fugitiveemissions, prior to recycling, treatment, ordisposal; and

‘‘(B) reduces the hazards to the publichealth and the environment associated withthe release of such substances, pollutants, orcontaminants,

including equipment or technology modifica-tions, process or procedure modifications, re-formulation or redesign of products, substi-tution of raw materials, and improvementsin housekeeping, maintenance, training, andinventory control, but not including anypractice which alters the physical, chemical,or biological characteristics or the volume ofa hazardous substance, pollutant, or con-taminant through a process or activitywhich itself is not integral to and necessaryfor the production of a product or the provid-ing of a service;’’; and

(5) in section 9(a), by striking ‘‘, projects,and joint ventures’’ and inserting in lieuthereof ‘‘and projects’’.SEC. 1203. RENEWABLE ENERGY EXPORT TECH-

NOLOGY TRAINING.(a) ESTABLISHMENT OF PROGRAM.—The Sec-

retary, through the Agency for InternationalDevelopment, shall establish a program forthe training of individuals from developingcountries in the operation and maintenanceof renewable energy and energy efficiencytechnologies in accordance with this section.The Secretary and the Administrator of theAgency for International Development shall,within one year after the date of enactmentof this Act, enter into a written agreementto carry out this program.

(b) PURPOSE.—The purpose of the programestablished under this section shall be totrain appropriate persons in the system de-sign, operation, and maintenance of renew-able energy and energy efficiency equipmentmanufactured in the United States, includ-ing equipment for water pumping, heatingand purification, and the production of elec-tric power in remote areas.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary $6,000,000 for each of the fiscalyears 1994, 1995, and 1996, to carry out thissection.SEC. 1204. RENEWABLE ENERGY ADVANCEMENT

AWARDS.(a) AUTHORITY.—The Secretary shall make

Renewable Energy Advancement Awards inrecognition of developments that advancethe practical application of biomass, geo-thermal, hydroelectric, photovoltaic, solarthermal, ocean thermal, and wind tech-nologies to consumer, utility, or industrialuses, in accordance with this section. Exceptas provided in subsection (f), Renewable En-ergy Advancement Awards shall include acash award.

(b) SELECTION CRITERIA.—The Secretary, inconsultation with the Advisory Committeeon Demonstration and Commercial Applica-tion of Renewable Energy and Energy Effi-ciency Technologies (in this section referredto as the ‘‘Advisory Committee’’), under sec-tion 6 of the Renewable Energy and EnergyEfficiency Technology Competitiveness Actof 1989, shall develop criteria to be applied inthe selection of award recipients under thissection. Such criteria shall include the fol-lowing:

(1) The degree to which the technologicaldevelopment increases the utilization of re-newable energy.

(2) The degree to which the developmentwill have a significant impact, by benefittinga large number of people, by reducing thecosts of an important industrial process orcommercial product or service, or otherwise.

(3) The ingenuity of the development.(4) Whether the application has significant

export potential.(5) The environmental soundness of the de-

velopment.

(c) SELECTION.—Beginning in fiscal year1994, and annually thereafter for a period of10 years, the Secretary, in consultation withthe Advisory Committee, shall select devel-opments described in subsection (a) that areworthy of receiving an award under this sec-tion, and shall make such awards.

(d) ELIGIBILITY.—Awards may be madeunder this section only to individuals whoare United States nationals or permanentresident aliens, or to non-Federal organiza-tions that are organized under the laws ofthe United States or the laws of a State ofthe United States.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary $50,000 for each of the fiscalyears 1994, 1995, and 1996 for carrying out thissection.

(f) AWARDS MADE IN ABSENCE OF APPRO-PRIATIONS.—The Secretary shall make honor-ary awards under this section if sufficientfunds are not available for financial awardsin any fiscal year.SEC. 1205. STUDY OF TAX AND RATE TREATMENT

OF RENEWABLE ENERGY PROJECTS.(a) The Secretary, in conjunction with

State regulatory commissions, shall under-take a study to determine if conventionaltaxation and ratemaking procedures resultin economic barriers to or incentives for re-newable energy power plants compared toconventional power plants.

(b) Within 1 year after the date of the en-actment of this Act, the Secretary shall sub-mit a report to the Congress on the results ofthe study undertaken under subsection (a).SEC. 1206. STUDY OF RICE MILLING ENERGY BY-

PRODUCT MARKETING.The Department of Energy shall conduct a

study to facilitate the marketing of energybyproducts from rice milling.SEC. 1207. DUTIES OF INTERAGENCY WORKING

GROUP ON RENEWABLE ENERGYAND ENERGY EFFICIENCY EXPORTS.

(a) INTERAGENCY WORKING GROUP.—Section256(d) of the Energy Policy and ConservationAct (42 U.S.C. 6276(d)) is amended to read asfollows:

‘‘(d) INTERAGENCY WORKING GROUP.—‘‘(1) ESTABLISHMENT.—(A) There shall be

established an interagency working groupthat, in consultation with the representativeindustry groups and relevant agency heads,shall make recommendations to coordinatethe actions and programs of the Federal Gov-ernment affecting exports of renewable en-ergy and energy efficiency products and serv-ices. The interagency working group shallestablish a program to inform foreign coun-tries of the benefits of policies that would in-crease energy efficiency or would allow fa-cilities that use renewable energy to com-pete effectively with producers of energyfrom nonrenewable sources.

‘‘(B) There shall be established an Inter-agency Working Subgroup on Renewable En-ergy and an Interagency Working Subgroupon Energy Efficiency that shall, in consulta-tion with representative industry groups,nonprofit organizations, and relevant Fed-eral agencies, make recommendations to co-ordinate the actions and programs of theFederal Government to promote the exportof domestic renewable energy and energy ef-ficiency products and services, respectively.

‘‘(C) The Secretary of Energy, or the Sec-retary’s designee, shall chair the interagencyworking group and each subgroup estab-lished under this paragraph. The Adminis-trator of the Agency for International Devel-opment and the Secretary of Commerce, ortheir designees, shall be members of bothsubgroups established under this paragraph.The Secretary shall provide staff for carry-ing out the functions of the interagencyworking group and each subgroup estab-lished under this paragraph. The heads of ap-

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OCTOBER 5T121.25propriate agencies may detail such personneland may furnish such services to such groupand subgroups, with or without reimburse-ment, as may be necessary to carry out theirfunctions.

‘‘(2) DUTIES OF THE INTERAGENCY WORKINGSUBGROUPS.—(A) The interagency workingsubgroups established under paragraph(1)(B), through the member agencies of theinteragency working group, shall promotethe development and application in foreigncountries of renewable energy and energy ef-ficiency products and services, respectively,that—

‘‘(i) reduce dependence on unreliablesources of energy by encouraging the use ofsustainable biomass, wind, small-scale hy-droelectric, solar, geothermal, and other re-newable energy and energy efficiency prod-ucts and services; and

‘‘(ii) use hybrid fossil-renewable energysystems.

‘‘(B) In addition, the interagency workingsubgroups shall explore mechanisms for as-sisting domestic firms, particularly smallbusinesses, with the export of their renew-able energy and energy efficiency productsand services and with the identification ofpotential projects.

‘‘(3) TRAINING AND ASSISTANCE.—The inter-agency working subgroups shall encouragethe member agencies of the interagencyworking group to—

‘‘(A) provide technical training and edu-cation for international development person-nel and local users in their own country;

‘‘(B) provide financial and technical assist-ance to nonprofit institutions that supportthe marketing and export efforts of domesticcompanies that provide renewable energyand energy efficiency products and services;

‘‘(C) develop environmentally sustainablerenewable energy and energy efficiencyprojects in foreign countries;

‘‘(D) provide technical assistance andtraining materials to loan officers of theWorld Bank, international lending institu-tions, commercial and energy attaches atembassies of the United States and other ap-propriate personnel in order to provide infor-mation about renewable energy and energyefficiency products and services to foreigngovernments or other potential project spon-sors;

‘‘(E) support, through financial incentives,private sector efforts to commercialize andexport renewable energy and energy effi-ciency products and services; and

‘‘(F) augment budgets for trade and devel-opment programs in order to support pre-fea-sibility or feasibility studies for projectsthat utilize renewable energy and energy ef-ficiency products and services.’’.

(b) FUNCTIONS.—Section 256(f) of the En-ergy Policy and Conservation Act (42 U.S.C.6276(f)) is amended by inserting ‘‘and energyefficiency’’ after ‘‘renewable energy’’ eachplace it appears.

(c) DEFINITIONS.—Section 256(g) of the En-ergy Policy and Conservation Act (42 U.S.C.6276(g)) is repealed.

(d) AUTHORIZATION OF APPROPRIATIONS.—Section 256(h) of the Energy Policy and Con-servation Act (42 U.S.C. 6276(h)) is amendedto read as follows:

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for purposes of carrying outthe programs under subsections (d) and (e)$10,000,000, to be divided equitably betweenthe interagency working subgroups based onprogram requirements, for each of the fiscalyears 1993 and 1994, and such sums as may benecessary for fiscal year 1995 to carry out thepurposes of this subtitle.’’.SEC. 1208. STUDY OF EXPORT PROMOTION PRAC-

TICES.Section 256(d) of the Energy Policy and

Conservation Act (42 U.S.C. 6276(d)) as

amended by section 1208 of this Act, is fur-ther amended by adding at the end the fol-lowing new paragraph:

‘‘(4) The interagency working group shallconduct a study of subsidies, incentives, andpolicies that foreign countries use to pro-mote exports of their own renewable energyand energy efficiency technologies and prod-ucts. Such study shall also identify foreigntrade barriers to the import of renewable en-ergy and energy efficiency technologies andproducts produced in the United States. Theinteragency working group shall report tothe appropriate committees of the House ofRepresentatives and the Senate the resultsof such study within 18 months after the dateof the enactment of the Energy Policy Act of1992.’’.SEC. 1209. DATA SYSTEM AND ENERGY TECH-

NOLOGY EVALUATION.The Secretary of Commerce, in his or her

role as a member of the interagency workinggroup established under section 256 of theEnergy Policy and Conservation Act (42U.S.C. 6276), shall—

(1) develop a comprehensive data base andinformation dissemination system, using theNational Trade Data Bank and the Commer-cial Information Management System of theDepartment of Commerce, that will provideinformation on the specific energy tech-nology needs of foreign countries, and thetechnical and economic competitiveness ofvarious renewable energy and energy effi-ciency products and technologies;

(2) make such information available to in-dustry, Federal and multilateral lendingagencies, nongovernmental organizations,host-country and donor-agency officials, andsuch others as the Secretary of Commerceconsiders necessary; and

(3) prepare and transmit to the Congressnot later than June 1, 1993, and bienniallythereafter, a comprehensive report evaluat-ing the full range of energy and environ-mental technologies necessary to meet theenergy needs of foreign countries, includ-ing—

(A) information on the specific energyneeds of foreign countries;

(B) an inventory of United States tech-nologies and services to meet those needs;

(C) an update on the status of ongoing bi-lateral and multilateral programs which pro-mote United States exports of renewable en-ergy and energy efficiency products andtechnologies; and

(D) an evaluation of current programs (andrecommendations for future programs) thatdevelop and promote energy efficiency andsustainable use of indigenous renewable en-ergy resources in foreign countries to reducethe generation of greenhouse gases.SEC. 1210. OUTREACH.

(a) OUTREACH.—The interagency workinggroup established under section 256(d)(1)(A)of the Energy Policy and Conservation Actand the Secretary of Commerce shall selectone individual who is experienced in renew-able energy and energy efficiency productsand technologies to be assigned by the Sec-retary of Commerce to an office of theUnited States and Foreign Commercial Serv-ice in the Pacific Rim, and one such individ-ual to be assigned by the Secretary of Com-merce to an office of the United States andForeign Commercial Service in the Carib-bean Basin, for the sole purpose of providinginformation concerning domestic renewableenergy and energy efficiency products, tech-nologies, and industries to territories, for-eign governments, industries, and other ap-propriate persons.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for the purposes of this section$500,000 for each of the fiscal years 1993 and1994, and such sums as may be necessary forfiscal year 1995.

SEC. 1211. INNOVATIVE RENEWABLE ENERGYTECHNOLOGY TRANSFER PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—The Sec-retary, through the Agency for InternationalDevelopment, and in consultation with theother members of the interagency workinggroup established under section 256(d) of En-ergy Policy and Conservation Act (in thissection referred to as the ‘‘interagency work-ing group’’), shall establish a renewable en-ergy technology transfer program to carryout the purposes described in subsection (b).Within 150 days after the date of the enact-ment of this Act, the Secretary and the Ad-ministrator of the Agency for InternationalDevelopment shall enter into a writtenagreement to carry out this section. Theagreement shall establish a procedure for re-solving any disputes between the Secretaryand the Administrator regarding the imple-mentation of specific projects. With respectto countries not assisted by the Agency forInternational Development, the Secretarymay enter into agreements with other appro-priate Federal agencies. If the Secretary andthe Administrator, or the Secretary and anagency described in the previous sentence,are unable to reach an agreement, each shallsend a memorandum to the President outlin-ing an appropriate agreement. Within 90days after receipt of either memorandum,the President shall determine which versionof the agreement shall be in effect. Anyagreement entered into under this sub-section shall be provided to the appropriatecommittees of the Congress and made avail-able to the public.

(b) PURPOSES OF THE PROGRAM.—The pur-poses of the technology transfer programunder this section are to—

(1) reduce the United States balance oftrade deficit through the export of UnitedStates renewable energy technologies andtechnological expertise;

(2) retain and create manufacturing and re-lated service jobs in the United States;

(3) encourage the export of United Statesrenewable energy technologies, includingservices related thereto, to those countriesthat have a need for developmentally soundfacilities to provide energy derived from re-newable resources;

(4) develop markets for United States re-newable energy technologies to be utilized inmeeting the energy and environmental re-quirements of foreign countries;

(5) better ensure that United States par-ticipation in energy-related projects in for-eign countries includes participation byUnited States firms as well as utilization ofUnited States technologies that have beendeveloped or demonstrated in the UnitedStates through publicly or privately fundeddemonstration programs;

(6) ensure the introduction of UnitedStates firms and expertise in foreign coun-tries;

(7) provide financial assistance by the Fed-eral Government to foster greater participa-tion by United States firms in the financing,ownership, design, construction, or operationof renewable energy technology projects inforeign countries;

(8) assist foreign countries in meeting theirenergy needs through the use of renewableenergy in an environmentally acceptiblemanner, consistent with sustainable develop-ment policies; and

(9) assist United States firms, especiallyfirms that are in competition with firms inforeign countries, to obtain opportunities totransfer technologies to, or undertakeprojects in, foreign countries.

(c) IDENTIFICATION.—Pursuant to the agree-ments required by subsection (a), the Sec-retary, through the Agency for InternationalDevelopment, and after consultation withthe interagency working group, UnitedStates firms, and representatives from for-


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1992 T121.25eign countries, shall develop mechanisms toidentify potential energy projects in hostcountries, and shall identify a list of suchprojects within 240 days after the date of theenactment of this Act, and periodicallythereafter.

(d) FINANCIAL MECHANISMS.—(1) Pursuantto the agreements under subsection (a), theSecretary, through the Agency for Inter-national Development, shall—

(A) establish appropriate financial mecha-nisms to increase the participation of UnitedStates firms in energy projects utilizingUnited States renewable energy tech-nologies, and services related thereto, in de-veloping countries;

(B) utilize available financial assistanceauthorized by this section to counterbalanceassistance provided by foreign governmentsto non-United States firms; and

(C) provide financial assistance to supportprojects.

(2) The financial assistance authorized bythis section may be—

(A) provided in combination with otherforms of financial assistance, including non-United States funding that is available tothe project; and

(B) utilized to assist United States firms inthe development of innovative financingpackages for renewable energy technologyprojects that utilize other financial assist-ance programs available through the FederalGovernment.

(3) United States obligations under the Ar-rangement on Guidelines for Officially Sup-ported Export Credits established throughthe Organization for Economic Cooperationand Development shall be applicable to thissection.

(e) SOLICITATIONS FOR PROJECT PROPOS-ALS.—(1) Pursuant to the agreements undersubsection (a), the Secretary, through theAgency for International Development, with-in one year after the date of the enactmentof this Act, and subsequently as appropriatethereafter, shall solicit proposals fromUnited States firms for the design, construc-tion, testing, and operation of the project orprojects identified under subsection (c)which propose to utilize a United States re-newable energy technology. Each solicita-tion under this section shall establish a clos-ing date for receipt of proposals.

(2) The solicitation under this subsectionshall, to the extent appropriate, be modeledafter the RFP No. DE–PS01–90FE62271 CleanCoal Technology IV, as administered by theDepartment of Energy.

(3) Any solicitation made under this sub-section shall include the following require-ments:

(A) The United States firm that submits aproposal in response to the solicitation shallhave an equity interest in the proposedproject.

(B) The project shall utilize a UnitedStates renewable energy technology, includ-ing services related thereto, in meeting theapplicable energy and environmental re-quirements of the host country.

(C) Proposals for projects shall be submit-ted by and undertaken with a United Statesfirm, although a joint venture or otherteaming arrangement with a non-UnitedStates manufacturer or other non-UnitedStates entity is permissible.

(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the agreements under sub-section (a), the Secretary, through the Agen-cy for International Development, and inconsultation with the interagency workinggroup, shall establish a procedure to providefinancial assistance to United States firmsunder this section for a project identifiedunder subsection (c) where solicitations forthe project are being conducted by the hostcountry or by a multilateral lending institu-tion.

(g) OTHER PROGRAM REQUIREMENTS.—Pur-suant to the agreements under subsection(a), the Secretary, through the Agency forInternational Development, and in consulta-tion with the working group, shall—

(1) establish eligibility criteria for hostcountries;

(2) periodically review the energy needs ofsuch countries and export opportunities forUnited States firms for the development ofprojects in such countries;

(3) consult with government officials inhost countries and, as appropriate, with rep-resentatives of utilities or other entities inhost countries, to determine interest in andsupport for potential projects; and

(4) determine whether each project se-lected under this section is developmentallysound, as determined under the criteria de-veloped by the Development Assistance Com-mittee of the Organization for Economic Co-operation and Development.

(h) SELECTION OF PROJECTS.—(1) Pursuantto the agreements under subsection (a), theSecretary, through the Agency for Inter-national Development, shall, not later than120 days after receipt of proposals in re-sponse to a solicitation under subsection (e),select one or more proposals under this sec-tion.

(2) In selecting a proposal under this sec-tion, the Secretary, through the Agency forInternational Development, shall consider—

(A) the ability of the United States firm, incooperation with the host country, to under-take and complete the project;

(B) the degree to which the equipment tobe included in the project is designed andmanufactured in the United States;

(C) the long-term technical and competi-tive viability of the United States tech-nology, and services related thereto, and theability of the United States firm to competein the development of additional energyprojects using such technology in the hostcountry and in other foreign countries;

(D) the extent of technical and financialinvolvement of the host country in theproject;

(E) the extent to which the proposedproject meets the purposes stated in section1201(b);

(F) the extent of technical, financial, man-agement, and marketing capabilities of theparticipants in the project, and the commit-ment of the participants to completion of asuccessful project in a manner that will fa-cilitate acceptance of the United Statestechnology for future application; and

(G) such other criteria as may be appro-priate.

(3) In selecting among proposed projects,the Secretary shall seek to ensure that, rel-ative to otherwise comparable projects inthe host country, a selected project willmeet 1 or more of the following criteria:

(A) It will reduce environmental emissionsto an extent greater than required by appli-cable provisions of law.

(B) It will make greater use of indigenousrenewable energy resources.

(C) It will be a more cost-effective techno-logical alternative, based on life cycle cap-ital and operating costs per unit of energyproduced and, where applicable, costs perunit of product produced.Priority in selection shall be given to thoseprojects which, in the judgment of the Sec-retary, best meet one or more of these cri-teria.

(i) UNITED STATES-ASIA ENVIRONMENTALPARTNERSHIP.—Activities carried out underthis section shall be coordinated with theUnited States-Asia Environmental Partner-ship.

(j) BUY AMERICA.—In carrying out this sec-tion, the Secretary, through the Agency forInternational Development, and pursuant to

the agreements under subsection (a), shallensure—

(1) the maximum percentage, but in nocase less than 50 percent, of the cost of anyequipment furnished in connection with aproject authorized under this section shall beattributable to the manufactured UnitedStates components of such equipment; and

(2) the maximum participation of UnitedStates firms.In determining whether the cost of UnitedStates components equals or exceeds 50 per-cent, the cost of assembly of such UnitedStates components in the host country shallnot be considered a part of the cost of suchUnited States component.

(k) REPORTS TO CONGRESS.—The Secretaryand the Administrator of the Agency forInternational Development shall report an-nually to the Committee on Energy and Nat-ural Resources of the Senate and the appro-priate committees of the House of Represent-atives on the progress being made to intro-duce renewable energy technologies into for-eign countries.

(l) DEFINITIONS.—For purposes of this sec-tion—

(1) the term ‘‘host country’’ means a for-eign country which is—

(A) the participant in or the site of theproposed renewable energy technologyproject; and

(B) either—(i) classified as a country eligible to par-

ticipate in development assistance programsof the Agency for International Developmentpursuant to applicable law or regulation; or

(ii) a developing country.(2) the term ‘‘developing country’’ in-

cludes, but is not limited to, countries inCentral and Eastern Europe or in the inde-pendent states of the former Soviet Union.

(m) AUTHORIZATION FOR PROGRAM.—Thereare authorized to be appropriated to the Sec-retary to carry out the program required bythis section, $100,000,000 for each of the fiscalyears 1993, 1994, 1995, 1996, 1997, and 1998.SEC. 1212. RENEWABLE ENERGY PRODUCTION IN-

CENTIVE.(a) INCENTIVE PAYMENTS.—For electric en-

ergy generated and sold by a qualified renew-able energy facility during the incentive pe-riod, the Secretary shall make, subject tothe availability of appropriations, incentivepayments to the owner or operator of suchfacility. The amount of such payment madeto any such owner or operator shall be as de-termined under subsection (e). Paymentsunder this section may only be made uponreceipt by the Secretary of an incentive pay-ment application which establishes that theapplicant is eligible to receive such paymentand which satisfies such other requirementsas the Secretary deems necessary. Such ap-plication shall be in such form, and shall besubmitted at such time, as the Secretaryshall establish.

(b) QUALIFIED RENEWABLE ENERGY FACIL-ITY.—For purposes of this section, a qualifiedrenewable energy facility is a facility whichis owned by a State or any political subdivi-sion of a State (or an agency, authority, orinstrumentality of a State or a political sub-division), by any corporation or associationwhich is wholly owned, directly or indi-rectly, by one or more of the foregoing, or bya nonprofit electrical cooperative and whichgenerates electric energy for sale in, or af-fecting, interstate commerce using solar,wind, biomass, or geothermal energy, exceptthat—

(1) the burning of municipal solid wasteshall not be treated as using biomass energy;and

(2) geothermal energy shall not include en-ergy produced from a dry steam geothermalreservoir which has—

(A) no mobile liquid in its natural state;

JOURNAL OF THE

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OCTOBER 5T121.25(B) steam quality of 95 percent water; and(C) an enthalpy for the total produced fluid

greater than or equal to 1200 Btu/lb (Britishthermal units per pound).

(c) ELIGIBILITY WINDOW.—Payments may bemade under this section only for electricitygenerated from a qualified renewable energyfacility first used during the 10-fiscal yearperiod beginning with the first full fiscalyear occurring after the enactment of thissection.

(d) PAYMENT PERIOD.—A qualified renew-able energy facility may receive paymentsunder this section for a 10-fiscal year period.Such period shall begin with the fiscal yearin which electricity generated from the facil-ity is first eligible for such payments.

(e) AMOUNT OF PAYMENT.—(1) IN GENERAL.—Incentive payments made

by the Secretary under this section to theowner or operator of any qualified renewableenergy facility shall be based on the numberof kilowatt hours of electricity generated bythe facility through the use of solar, wind,biomass, or geothermal energy during thepayment period referred to in subsection (d).For any facility, the amount of such pay-ment shall be 1.5 cents per kilowatt hour, ad-justed as provided in paragraph (2).

(2) ADJUSTMENTS.—The amount of the pay-ment made to any person under this sub-section as provided in paragraph (1) shall beadjusted for inflation for each fiscal year be-ginning after calendar year 1993 in the samemanner as provided in the provisions of sec-tion 29(d)(2)(B) of the Internal Revenue Codeof 1986, except that in applying such provi-sions the calendar year 1993 shall be sub-stituted for calendar year 1979.

(f) SUNSET.—No payment may be madeunder this section to any facility after theexpiration of the 20-fiscal year period begin-ning with the first full fiscal year occurringafter the enactment of this section, and nopayment may be made under this section toany facility after a payment has been madewith respect to such facility for a 10-fiscalyear period.

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for fiscal years 1993, 1994, and1995 such sums as may be necessary to carryout the purposes of this section.

TITLE XIII—COALSubtitle A—Research, Development,

Demonstration, and Commercial ApplicationSEC. 1301. COAL RESEARCH, DEVELOPMENT,

DEMONSTRATION, AND COMMER-CIAL APPLICATION PROGRAMS.

(a) ESTABLISHMENT.—The Secretary shall,in accordance with section 3001 and 3002 ofthis Act, conduct programs for research, de-velopment, demonstration, and commercialapplication on coal-based technologies. Suchresearch, development, demonstration, andcommercial application programs shall in-clude the programs established under thissubtitle, and shall have the goals and objec-tives of—

(1) ensuring a reliable electricity supply;(2) complying with applicable environ-

mental requirements;(3) achieving the control of sulfur oxides,

oxides of nitrogen, air toxics, solid and liquidwastes, greenhouse gases, or other emissionsresulting from coal use or conversion at lev-els of proficiency greater than or equal toapplicable currently available commercialtechnology;

(4) achieving the cost competitive conver-sion of coal into energy forms usable in thetransportation sector;

(5) demonstrating the conversion of coal tosynthetic gaseous, liquid, and solid fuels;

(6) demonstrating, in cooperation withother Federal and State agencies, the use ofcoal-derived fuels in mobile equipment, withopportunities for industrial cost sharing par-ticipation;

(7) ensuring the timely commercial appli-cation of cost-effective technologies or en-ergy production processes or systems utiliz-ing coal which achieve—

(A) greater efficiency in the conversion ofcoal to useful energy when compared to cur-rently available commercial technology forthe use of coal; and

(B) the control of emissions from the utili-zation of coal; and

(8) ensuring the availability for commer-cial use of such technologies by the year2010.

(b) DEMONSTRATION AND COMMERCIAL AP-PLICATION PROGRAMS.—(1) In selecting eithera demonstration project or a commercial ap-plication project for financial assistanceunder this subtitle, the Secretary shall seekto ensure that, relative to otherwise com-parable commercially available technologiesor products, the selected project will meetone or more of the following criteria:


(B) It will increase the overall efficiency ofthe utilization of coal, including energy con-version efficiency and, where applicable, pro-duction of products derived from coal.


(2) In administering demonstration andcommercial application programs authorizedby this subtitle, the Secretary shall estab-lish accounting and project managementcontrols that will be adequate to controlcosts.

(3)(A) Not later than 180 days after the dateof enactment of this Act, the Secretary shallestablish procedures and criteria for therecoupment of the Federal share of each costshared demonstration and commercial appli-cation project authorized pursuant to thissubtitle. Such recoupment shall occur withina reasonable period of time following thedate of completion of such project, but notlater than 20 years following such date, tak-ing into account the effect of recoupmenton—

(i) the commercial competitiveness of theentity carrying out the project;

(ii) the profitability of the project; and(iii) the commercial viability of the coal-

based technology utilized.(B) The Secretary may at any time waive

or defer all or some portion of therecoupment requirement as necessary for thecommercial viability of the project.

(4) Projects selected by the Secretaryunder this subtitle for demonstration orcommercial application of a technologyshall, in the judgment of the Secretary, becapable of enhancing the state of the art forsuch technology.

(c) REPORT.—Within 240 days after the dateof enactment of this Act, the Secretary shalltransmit to the Committee on Energy andCommerce and the Committee on Science,Space, and Technology of the House of Rep-resentatives and to the Committee on En-ergy and Natural Resources of the Senate areport which shall include each of the follow-ing:

(1) A detailed description of ongoing re-search, development, demonstration, andcommercial application activities regardingcoal-based technologies undertaken by theDepartment of Energy, other Federal orState government departments or agenciesand, to the extent such information is pub-licly available, other public or private orga-

nizations in the United States and othercountries.

(2) A listing and analysis of current Fed-eral and State government regulatory and fi-nancial incentives that could further thegoals of the programs established under thissubtitle.

(3) Recommendations regarding the man-ner in which any ongoing coal-based dem-onstration and commercial application pro-gram might be modified and extended inorder to ensure the timely demonstrations ofadvanced coal-based technologies so as to en-sure that the goals established under thissection are achieved and that such dem-onstrated technologies are available for com-mercial use by the year 2010.

(4) Recommendations, if any, regarding themanner in which the cost sharing dem-onstrations conducted pursuant to the CleanCoal Program established by Public Law 98–473 might be modified and extended in orderto ensure the timely demonstration of ad-vanced coal-based technologies.

(5) A detailed plan for conducting the re-search, development, demonstration, andcommercial application programs to achievethe goals and objectives of subsection (a) ofthis section, which plan shall include a de-scription of—

(A) the program elements and managementstructure to be utilized;

(B) the technical milestones to be achievedwith respect to each of the advanced coal-based technologies included in the plan; and

(C) the dates at which further deadlines foradditional cost sharing demonstrations shallbe established.

(d) STATUS REPORTS.—Within one yearafter transmittal of the report described insubsection (c), and every 2 years thereafterfor a period of 6 years, the Secretary shalltransmit to the Congress a report that pro-vides a detailed description of the status ofdevelopment of the advanced coal-basedtechnologies and the research, development,demonstration, and commercial applicationactivities undertaken to carry out the pro-grams required by this subtitle.

(e) CONSULTATION.—In carrying out re-search, development, demonstration, andcommercial application activities under thissubtitle, the Secretary shall consult with theNational Coal Council and other representa-tives of the public and private sectors as theSecretary considers appropriate.SEC. 1302. COAL-FIRED DIESEL ENGINES.

The Secretary shall conduct a program ofresearch, development, demonstration, andcommercial application for utilizing coal-de-rived liquid or gaseous fuels, including ultra-clean coal-water slurries, in diesel engines.The program shall address—

(1) required engine retrofit technology;(2) coal-fuel production technology;(3) emission control requirements;(4) the testing of low-Btu highly reactive

fuels;(5) fuel delivery and storage systems re-

quirements; and(6) other infrastructure required to support

commercial deployment.SEC. 1303. CLEAN COAL, WASTE-TO-ENERGY.

The Secretary shall establish a program ofresearch, development, demonstration, andcommercial application with respect to theuse of solid waste combined with coal as afuel source for clean coal combustion tech-nologies. The program shall address—

(1) the feasibility of cofiring coal and usedvehicle tires in fluidized bed combustionunits;

(2) the combined gasification of coal andmunicipal sludge using integrated gasifi-cation combined cycle technology;

(3) the creation of fuel pellets combiningcoal and material reclaimed from solidwaste;


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1992 T121.25(4) the feasibility of cofiring, in fluidized

bed combustion units, waste methane fromcoal mines, including ventilation air, to-gether with coal or coal wastes; and

(5) other sources of waste and coal mix-tures in other applications that the Sec-retary considers appropriate.SEC. 1304. NONFUEL USE OF COAL.

(a) PROGRAM.—The Secretary shall preparea plan for and carry out a program of re-search, development, demonstration, andcommercial application with respect to tech-nologies for the nonfuel use of coal, includ-ing—

(1) production of coke and other carbonproducts derived from coal;

(2) production of coal-derived, carbon-based chemical intermediates that are pre-cursors of value-added chemicals and poly-mers;

(3) production of chemicals from coal-de-rived synthesis gas;

(4) coal treatment processes, includingmethodologies such as solvent-extractiontechniques that produce low ash, low sulfur,coal-based chemical feedstocks; and

(5) waste utilization, including recovery,processing, and marketing of products de-rived from sulfur, carbon dioxide, nitrogen,and ash from coal.

(b) PLAN CONTENTS.—The plan described insubsection (a) shall address and evaluate—

(1) the known and potential processes forusing coal in the creation of products in thechemical, utility, fuel, and carbon-based ma-terials industries;

(2) the costs, benefits, and economic fea-sibility of using coal products in the chemi-cal and materials industries, includingvalue-added chemicals, carbon-based prod-ucts, coke, and waste derived from coal;

(3) the economics of coproduction of prod-ucts from coal in conjunction with the pro-duction of electric power, thermal energy,and fuel;

(4) the economics of the refining of coaland coal byproducts to produce nonfuel prod-ucts;

(5) the economics of coal utilization incomparison with other feedstocks that mightbe used for the same purposes;

(6) the steps that can be taken by the pub-lic and private sectors to bring about com-mercialization of technologies developedunder the program recommended; and

(7) the past development, current status,and future potential of coal products andprocesses associated with nonfuel uses ofcoal.SEC. 1305. COAL REFINERY PROGRAM.

(a) PROGRAM.—The Secretary shall conducta program of research, development, dem-onstration, and commercial application forcoal refining technologies.

(b) OBJECTIVES.—The program shall includetechnologies for refining high sulfur coals,low sulfur coals, sub-bituminous coals, andlignites to produce clean-burning transpor-tation fuels, compliance boiler fuels, fuel ad-ditives, lubricants, chemical feedstocks, andcarbon-based manufactured products, eitheralone or in conjunction with the generationof electricity or process heat, or the manu-facture of a variety of products from coal.The objectives of such program shall be toachieve—

(1) the timely commercial application oftechnologies, including mild gasification,hydrocracking and other hydropyrolysisprocesses, and other energy production proc-esses or systems to produce coal-derivedfuels and coproducts, which achieve greaterefficiency and economy in the conversion ofcoal to electrical energy and coproducts thancurrently available technology;

(2) the production of energy, fuels, andproducts which, on a complete energy sys-tem basis, will result in environmental emis-

sions no greater than those produced by ex-isting comparable energy systems utilizedfor the same purpose;

(3) the capability to produce a range ofcoal-derived transportation fuels, includingoxygenated hydrocarbons, boiler fuels, tur-bine fuels, and coproducts, which can reducedependence on imported oil by displacingconventional petroleum in the transpor-tation sector and other sectors of the econ-omy;

(4) reduction in the cost of producing suchcoal-derived fuels and coproducts;

(5) the control of emissions from the com-bustion of coal-derived fuels; and

(6) the availability for commercial use ofsuch technologies by the year 2000.SEC. 1306. COALBED METHANE RECOVERY.

(a) STUDY OF BARRIERS AND ENVIRON-MENTAL AND SAFETY ASPECTS.—The Sec-retary, in consultation with the Adminis-trator of the Environmental ProtectionAgency and the Secretary of the Interior,shall conduct a study of—

(1) technical, economic, financial, legal,regulatory, institutional, or other barriersto coalbed methane recovery, and of policyoptions for eliminating such barriers; and

(2) the environmental and safety aspects offlaring coalbed methane liberated from coalmines.Within two years after the date of enactmentof this Act, the Secretary shall submit a re-port to the Congress detailing the results ofsuch study.

(b) INFORMATION DISSEMINATION.—Begin-ning one year after the date of enactment ofthis Act, the Secretary, in consultation withthe Administrator of the EnvironmentalProtection Agency and the Secretary of theInterior, shall disseminate to the public in-formation on state-of-the-art coalbed meth-ane recovery techniques, including informa-tion on costs and benefits.

(c) DEMONSTRATION AND COMMERCIAL APPLI-CATION PROGRAM.—The Secretary, in con-sultation with the Administrator of the En-vironmental Protection Agency and the Sec-retary of the Interior, shall establish a coal-bed methane recovery demonstration andcommercial application program, whichshall emphasize gas enrichment technology.Such program shall address—

(1) gas enrichment technologies for enrich-ing medium-quality methane recovered fromcoal mines to pipeline quality;

(2) technologies to use mine ventilation airin nearby power generation facilities, includ-ing gas turbines, internal combustion en-gines, or other coal fired powerplants;

(3) technologies for cofiring methane re-covered from mines, including methane fromventilation systems and degasification sys-tems, together with coal in conventional orclean coal technology boilers; and

(4) other technologies for producing andusing methane from coal mines that the Sec-retary considers appropriate.SEC. 1307. METALLURGICAL COAL DEVELOP-

MENT.(a) The Secretary shall establish a re-

search, development, demonstration, andcommercial application program on met-allurgical coal utilization for the purpose ofdeveloping techniques that will lead to thegreater and more efficient utilization of theNation’s metallurgical coal resources.

(b) The program referred to in subsection(a) shall include the use of metallurgicalcoal—

(1) as a boiler fuel for the purpose of gener-ating steam to produce electricity, includingblending metallurgical coal with other coalsin order to enhance its efficient applicationas a boiler fuel;

(2) as an ingredient in the manufacturingof steel; and

(3) as a source of pipeline quality coalbedmethane.

SEC. 1308. UTILIZATION OF COAL WASTES.(a) COAL WASTE UTILIZATION PROGRAM.—

The Secretary, in consultation with the Sec-retary of the Interior, shall establish a re-search, development, demonstration, andcommercial application program on coalwaste utilization for the purpose of develop-ing techniques that will lead to the greaterand more efficient utilization of coal wastesfrom mining and processing, other than coalash.

(b) USE AS BOILER FUEL.—The program re-ferred to in subsection (a) shall includeprojects to facilitate the use of coal wastesfrom mining and processing as a boiler fuelfor the purpose of generating steam toproduce electricity.SEC. 1309. UNDERGROUND COAL GASIFICATION.

(a) PROGRAM.—The Secretary shall conducta research, development, demonstration, andcommercial application program for under-ground coal gasification technology for in-situ conversion of coal to a cleaner burning,easily transportable gaseous fuel. The goaland objective of this program shall be to ac-celerate the development and commer-cialization of underground coal gasification.In carrying out this program, the Secretaryshall give equal consideration to all ranks ofcoal.

(b) DEMONSTRATION PROJECTS.—As part ofthe program authorized in subsection (a), theSecretary may solicit proposals for under-ground coal gasification technology projectsto fulfill the goal and objective of subsection(a).SEC. 1310. LOW-RANK COAL RESEARCH AND DE-

VELOPMENT.The Secretary shall pursue a program of

research and development with respect tothe technologies needed to expand the use oflow-rank coals which take into account theunique properties of lignites and sub-bitu-minous coals, including, but not limited to,the following areas—

(1) high value-added carbon products;(2) fuel cell applications;(3) emissions control and combustion effi-

ciencies;(4) coal water fuels and underground coal

gasification;(5) distillates; and(6) any other technologies which will assist

in the development of niche markets forlignites and sub-bituminous coals.SEC. 1311. MAGNETOHYDRODYNAMICS.

(a) PROGRAM.—The Secretary shall carryout a research, development, demonstration,and commercial application program in mag-netohydrodynamics. The purpose of this pro-gram shall be to determine the adequacy ofthe engineering and design information com-pleted to date under Department of Energycontracts related to magnetohydrodynamicsretrofit systems and to determine whetherany further Federal investment in this tech-nology is warranted.

(b) SOLICITATION OF PROPOSALS.—In orderto carry out the program authorized in sub-section (a), the Secretary may solicit propos-als from the private sector and seek to enterinto an agreement with appropriate parties.SEC. 1312. OIL SUBSTITUTION THROUGH COAL

LIQUEFACTION.(a) PROGRAM DIRECTION.—The Secretary

shall conduct a program of research, devel-opment, demonstration, and commercial ap-plication for the purpose of developing eco-nomically and environmentally acceptableadvanced technologies for oil substitutionthrough coal liquefaction.

(b) PROGRAM GOALS.—The goals of the pro-gram established under subsection (a) shallinclude—

(1) improved resource selection and prod-uct quality;

(2) the development of technologies to in-crease net yield of liquid fuel product per tonof coal;

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ciency; and(4) a reduction in capital and operating

costs through technology improvements.(c) PROPOSALS.—Within 180 days after the

date of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.SEC. 1313. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for carrying out this subtitle$278,139,000 for fiscal year 1993 and such sumsas may be necessary for fiscal years 1994through 1997.

Subtitle B—Clean Coal Technology ProgramSEC. 1321. ADDITIONAL CLEAN COAL TECH-

NOLOGY SOLICITATIONS.(a) PROGRAM DESIGN.—Additional clean

coal technology solicitations described insubsection (b) shall be designed to ensure thetimely development of cost-effective tech-nologies or energy production processes orsystems utilizing coal that achieve greaterefficiency in the conversion of coal to usefulenergy when compared to currently commer-cially available technology for the use ofcoal and the control of emissions from thecombustion of coal. Such program shall bedesigned to ensure, to the greatest extentpossible, the availability for commercial useof such technologies by the year 2010.

(b) ADDITIONAL SOLICITATIONS.—In conduct-ing the Clean Coal Program established byPublic Law 98–473, the Secretary shall con-sider the potential benefits of conducting ad-ditional solicitations pursuant to such pro-gram and, based on the results of that con-sideration, may carry out such additional so-licitations, which shall be similar in scopeand percentage of Federal cost sharing asthat provided by Public Law 101–121.

Subtitle C—Other Coal ProvisionsSEC. 1331. CLEAN COAL TECHNOLOGY EXPORT

PROMOTION AND INTERAGENCY CO-ORDINATION.

(a) ESTABLISHMENT.—There shall be estab-lished within the Trade Promotion Coordi-nating Committee (established by the Presi-dent on May 23, 1990, a Clean Coal Tech-nology Subgroup (in this subtitle referred toas the ‘‘CCT Subgroup’’) to focus interagencyefforts on clean coal technologies. The CCTSubgroup shall seek to expand the exportand use of clean coal technologies, particu-larly in those countries which can benefitfrom gains in the efficiency of, and the con-trol of environmental emissions from, coalutilization.

(b) MEMBERSHIP.—The CCT Subgroup shallinclude 1 member from each agency rep-resented on the Energy, Environment, andInfrastructure Working Group of the TradePromotion Coordinating Committee as ofthe date of enactment of this Act. The Sec-retary shall serve as chair of the CCT Sub-group and shall be responsible for ensuringthat the functions of the CCT Subgroup arecarried out through its member agencies.

(c) CONSULTATION.—(1) In carrying out thissection, the CCT Subgroup shall consult withrepresentatives from the United States coalindustry, representatives of railroads andother transportation industries, organiza-tions representing workers, the electric util-ity industry, manufacturers of equipmentutilizing clean coal technology, members oforganizations formed to further the goals ofenvironmental protection or to promote thedevelopment and use of clean coal tech-nologies that are developed, manufactured,or controlled by United States firms, andother appropriate interested members of thepublic.

(2) The CCT Subgroup shall maintain ongo-ing liaison with other elements of the TradePromotion Coordinating Committee relatingto clean coal technologies or regions where

these technologies could be important, in-cluding Eastern Europe, Asia, and the Pa-cific.

(d) DUTIES.—The Secretary, acting throughthe CCT Subgroup, shall—

(1) facilitate the establishment of tech-nical training for the consideration, plan-ning, construction, and operation of cleancoal technologies by end users and inter-national development personnel;

(2) facilitate the establishment of and,where practicable, cause to be established,consistent with the goals and objectivesstated in section 1301(a), within existing de-partments and agencies—

(A) financial assistance programs (includ-ing grants, loan guarantees, and no interestand low interest loans) to supportprefeasibility and feasibility studies forprojects that will utilize clean coal tech-nologies; and

(B) loan guarantee programs, grants, andno interest and low interest loans designedto facilitate access to capital and credit inorder to finance such clean coal technologyprojects;

(3) develop and ensure the execution of pro-grams, including the establishment of finan-cial incentives, to encourage and support pri-vate sector efforts in exports of clean coaltechnologies that are developed, manufac-tured, or controlled by United States firms;

(4) encourage the training in, and under-standing of, clean coal technologies by rep-resentatives of foreign companies or coun-tries intending to use coal or clean coal tech-nologies by providing technical or financialsupport for training programs, workshops,and other educational programs sponsoredby United States firms;

(5) educate loan officers and other officersof international lending institutions, com-mercial and energy attaches of the UnitedStates, and such other personnel as the CCTSubgroup considers appropriate, for the pur-poses of providing information about cleancoal technologies to foreign governments orpotential project sponsors of clean coal tech-nology projects;

(6) develop policies and practices to be con-ducted by commercial and energy attachesof the United States, and such other person-nel as the CCT Subgroup considers appro-priate, in order to promote the exports ofclean coal technologies to those countriesinterested in or intending to utilize coal re-sources;

(7) augment budgets for trade and develop-ment programs supported by Federal agen-cies for the purpose of financially supportingprefeasibility or feasibility studies forprojects in foreign countries that will utilizeclean coal technologies;

(8) review ongoing clean coal technologyprojects and review and advise Federal agen-cies on the approval of planned clean coaltechnology projects which are sponsoredabroad by any Federal agency to determinewhether such projects are consistent withthe overall goals and objectives of this sec-tion;

(9) coordinate the activities of the appro-priate Federal agencies in order to ensurethat Federal clean coal technology exportpromotion policies are implemented in atimely fashion;

(10) work with CCT Subgroup memberagencies to develop an overall strategy forpromoting clean coal technology exports, in-cluding setting goals and allocating specificresponsibilities among member agencies,consistent with applicable statutes; and

(11) coordinate with multilateral institu-tions to ensure that United States tech-nologies are properly represented in theirprojects.

(e) DATA AND INFORMATION.—(1) The CCTSubgroup, consistent with other applicableprovisions of law, shall ensure the develop-

ment of a comprehensive data base and infor-mation dissemination system, using the Na-tional Trade Data Bank and the CommercialInformation Management System of the De-partment of Commerce, relating to the avail-ability of clean coal technologies and the po-tential need for such technologies, particu-larly in developing countries and countriesmaking the transition from nonmarket tomarket economies.

(2) The Secretary, acting through the CCTSubgroup, shall assess and prioritize foreignmarkets that have the most potential for theexport of clean coal technologies that are de-veloped, manufactured, or controlled byUnited States firms. Such assessment shallinclude—

(A) an analysis of the financing require-ments for clean coal technology projects inforeign countries and whether such projectsare dependent upon financial assistance fromforeign countries or multilateral institu-tions;

(B) the availability of other fuel or energyresources that may be available to meet theenergy requirements intended to be met bythe clean coal technology projects;

(C) the priority of environmental consider-ations in the selection of such projects;

(D) the technical competence of those enti-ties likely to be involved in the planning andoperation of such projects;

(E) an objective comparison of the environ-mental, energy, and economic performanceof each clean coal technology relative toconventional technologies;

(F) a list of United States vendors of cleancoal technologies; and

(G) answers to commonly asked questionsabout clean coal technologies,The Secretary, acting through the CCT Sub-group, shall make such information avail-able to the House of Representatives and theSenate, and to the appropriate committeesof each House of Congress, industry, Federaland international financing organizations,nongovernmental organizations, potentialcustomers abroad, governments of countrieswhere such clean coal technologies might beused, and such others as the CCT Subgroupconsiders appropriate.

(f) REPORT.—Within 180 days after the Sec-retary submits the report to the Congress asrequired by section 409 of Public Law 101–549,the Secretary, acting through the CCT Sub-group, shall provide to the appropriate com-mittees of the House of Representatives andthe Committee on Energy and Natural Re-sources of the Senate, a plan which detailsactions to be taken in order to address thoserecommendations and findings made in thereport submitted pursuant to section 409 ofPublic Law 101–549. As a part of the plan re-quired by this subsection, the Secretary, act-ing through the CCT Subgroup, shall specifi-cally address the adequacy of financial as-sistance available from Federal departmentsand agencies and international financing or-ganizations to aid in the financing ofprefeasibility and feasibility studies andprojects that would use a clean coal tech-nology in developing countries and countriesmaking the transition from nonmarket tomarket economies.SEC. 1332. INNOVATIVE CLEAN COAL TECH-

NOLOGY TRANSFER PROGRAM.(a) ESTABLISHMENT OF PROGRAM.—The Sec-

retary, through the Agency for InternationalDevelopment, and in consultation with theother members of the CCT Subgroup, shallestablish a clean coal technology transferprogram to carry out the purposes describedin subsection (b). Within 150 days after thedate of enactment of this Act, the Secretaryand the Administrator of the Agency forInternational Development shall enter into awritten agreement to carry out this section.The agreement shall establish a procedure


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1992 T121.25for resolving any disputes between the Sec-retary and the Administrator regarding theimplementation of specific projects. With re-spect to countries not assisted by the Agen-cy for International Development, the Sec-retary may enter into agreements with otherappropriate United States agencies. If theSecretary and the Administrator, or the Sec-retary and an agency described in the pre-vious sentence, are unable to reach an agree-ment, each shall send a memorandum to thePresident outlining an appropriate agree-ment. Within 90 days after receipt of eithermemorandum, the President shall determinewhich version of the agreement shall be ineffect. Any agreement entered into underthis subsection shall be provided to the ap-propriate committees of the Congress andmade available to the public.


(1) reduce the United States balance oftrade deficit through the export of UnitedStates energy technologies and techno-logical expertise;


(3) encourage the export of United Statestechnologies, including services relatedthereto, to those countries that have a needfor developmentally sound facilities to pro-vide energy derived from coal resources;

(4) develop markets for United States tech-nologies and, where appropriate, UnitedStates coal resources to be utilized in meet-ing the energy and environmental require-ments of foreign countries;

(5) better ensure that United States par-ticipation in energy-related projects in for-eign countries includes participation byUnited States firms as well as utilization ofUnited States technologies that have beendeveloped or demonstrated in the UnitedStates through publicly or privately fundeddemonstration programs;

(6) provide for the accelerated deploymentof United States technologies that will serveto introduce into foreign countries UnitedStates technologies intended to use coal re-sources in a more efficient, cost-effective,and environmentally acceptable manner;

(7) serve to ensure the introduction ofUnited States firms and expertise in foreigncountries;

(8) provide financial assistance by the Fed-eral Government to foster greater participa-tion by United States firms in the financing,ownership, design, construction, or operationof clean coal technology projects in foreigncountries;

(9) assist foreign countries in meeting theirenergy needs through the use of coal in anenvironmentally acceptable manner, consist-ent with sustainable development policies;and


(c) IDENTIFICATION.—Pursuant to the agree-ments required by subsection (a), the Sec-retary, through the Agency for InternationalDevelopment, and after consultation withthe CCT Subgroup, United States firms, andrepresentatives from foreign countries, shalldevelop mechanisms to identify potential en-ergy projects in host countries, and shallidentify a list of such projects within 240days after the date of enactment of this Act,and periodically thereafter.


(A) establish appropriate financial mecha-nisms to increase the participation of UnitedStates firms in energy projects utilizing

United States clean coal technologies, andservices related thereto, in developing coun-tries and countries making the transitionfrom nonmarket to market economies;


(C) provide financial assistance to supportprojects, including—

(i) financing the incremental costs of aclean coal technology project attributableonly to expenditures to prevent or abateemissions;

(ii) providing the difference between thecosts of a conventional energy project in thehost country and a comparable project thatwould utilize a clean coal technology capableof achieving greater efficiency of energyproducts and improved environmental emis-sions compared to such conventional project;and

(iii) such other forms of financial assist-ance as the Secretary, through the Agencyfor International Development, considers ap-propriate.


(A) provided in combination with otherforms of financial assistance, including non-United States funding that is available tothe project; and

(B) utilized to assist United States firms todevelop innovative financing packages forclean coal technology projects that seek toutilize other financial assistance programsavailable through other Federal agencies.


(e) SOLICITATIONS FOR PROJECT PROPOS-ALS.—(1) Pursuant to the agreements undersubsection (a), the Secretary, through theAgency for International Development, with-in one year after the date of enactment ofthis Act, and subsequently as appropriatethereafter, shall solicit proposals fromUnited States firms for the design, construc-tion, testing, and operation of the project orprojects identified under subsection (c)which propose to utilize a United Statestechnology. Each solicitation under this sec-tion shall establish a closing date for receiptof proposals.

(2) The solicitation under this subsectionshall, to the extent appropriate, be modeledafter the RFP No. DE–PS01–90FE62271 CleanCoal Technology IV as administered by theDepartment of Energy.



(B) The project shall utilize a UnitedStates clean coal technology, including serv-ices related thereto, and, where appropriate,United States coal resources, in meeting theapplicable energy and environmental re-quirements of the host country.


(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the agreements under sub-section (a), the Secretary, through the Agen-cy for International Development, and inconsultation with the CCT Subgroup, shallestablish a procedure to provide financial as-sistance to United States firms under thissection for a project identified under sub-

section (c) where solicitations for the projectare being conducted by the host country orby a multilateral lending institution.

(g) OTHER PROGRAM REQUIREMENTS.—Pur-suant to the agreements under subsection(a), the Secretary, through the Agency forInternational Development, and in consulta-tion with the CCT Subgroup, shall—

(1) establish eligibility criteria for coun-tries that will host projects;




(h) SELECTION OF PROJECTS.—(1) Pursuantto the agreements under subsection (a), theSecretary, through the Agency for Inter-national Development, shall, not later than120 days after receipt of proposals in re-sponse to a solicitation under subsection (e),select one or more proposals under this sec-tion.




(C) the long-term technical and competi-tive viability of the United States tech-nology, and services related thereto, and theability of the United States firm to competein the development of additional energyprojects using such technology in the hostcountry and in other foreign countries;


(E) the extent to which the proposedproject meets the goals and objectives statedin section 1301(a);

(F) the extent of technical, financial, man-agement, and marketing capabilities of theparticipants in the project, and the commit-ment of the participants to completion of asuccessful project in a manner that will fa-cilitate acceptance of the United Statestechnology for future application; and


(3) In selecting among proposed projects,the Secretary shall seek to ensure that, rel-ative to otherwise comparable projects inthe host country, a selected project willmeet 1 or more of the following criteria:


(B) It will increase the overall efficiency ofthe utilization of coal, including energy con-version efficiency and, where applicable, pro-duction of products derived from coal.


(i) UNITED STATES-ASIA ENVIRONMENTALPARTNERSHIP.—Activities carried out underthis section shall be coordinated with the

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(j) BUY AMERICA.—In carrying out this sec-tion, the Secretary, through the Agency forInternational Development, and pursuant tothe agreements under subsection (a), shallensure—


(2) the maximum participation of UnitedStates firms.In determining whether the cost of UnitedStates components equals or exceeds 50 per-cent, the cost of assembly of such UnitedStates components in the host country shallnot be considered a part of the cost of suchUnited States component.

(k) REPORTS TO CONGRESS.—The Secretaryand the Administrator of the Agency forInternational Development shall report an-nually to the Committee on Energy and Nat-ural Resources of the Senate and the appro-priate committees of the House of Represent-atives on the progress being made to intro-duce clean coal technologies into foreigncountries.

(l) DEFINITION.—For purposes of this sec-tion, the term ‘‘host country’’ means a for-eign country which is—

(1) the participant in or the site of the pro-posed clean coal technology project; and

(2) either—(A) classified as a country eligible to par-


(B) a developing country or country withan economy in transition from a nonmarketto a market economy.

(m) AUTHORIZATION FOR PROGRAM.—Thereare authorized to be appropriated to the Sec-retary to carry out the program required bythis section, $100,000,000 for each of the fiscalyears 1993, 1994, 1995, 1996, 1997, and 1998.SEC. 1333. CONVENTIONAL COAL TECHNOLOGY

TRANSFER.If the Secretary determines that the utili-

zation of a clean coal technology is not prac-ticable for a proposed project and that aUnited States conventional coal technologywould constitute a substantial improvementin efficiency, costs, and environmental per-formance relative to the technology beingused in a developing country or countrymaking the transition from nonmarket tomarket economies, with significant indige-nous coal resources, such technology shall,for purposes of sections 1321 and 1322, be con-sidered a clean coal technology. In the caseof combustion technologies, only the retro-fit, repowering, or replacement of a conven-tional technology shall constitute a substan-tial improvement for purposes of this sec-tion. In carrying out this section, the Sec-retary shall give highest priority to promot-ing the most environmentally sound and en-ergy efficient technologies.SEC. 1334. STUDY OF UTILIZATION OF COAL COM-

BUSTION BYPRODUCTS.(a) DEFINITION.—As used in this section,

the term ‘‘coal combustion byproducts’’means the residues from the combustion ofcoal including ash, slag, and flue gasdesulfurization materials.

(b) STUDY AND REPORT TO CONGRESS.—(1)The Secretary shall conduct a detailed andcomprehensive study on the institutional,legal, and regulatory barriers to increasedutilization of coal combustion byproducts bypotential governmental and commercialusers. Such study shall identify and inves-tigate barriers found to exist at the Federal,State, or local level, which may have limitedor may have the foreseeable effect of limit-

ing the quantities of coal combustion by-products that are utilized. In conducting thisstudy, the Secretary shall consult with otherdepartments and agencies of the FederalGovernment, appropriate State and localgovernments, and the private sector.

(2) Not later than one year after the date ofenactment of this Act, the Secretary shallsubmit a report to the Congress containingthe results of the study required by para-graph (1) and the Secretary’s recommenda-tions for action to be taken to increase theutilization of coal combustion byproducts.At a minimum, such report shall identify ac-tions that would increase the utilization ofcoal combustion byproducts in—

(A) bridge and highway construction;(B) stabilizing wastes;(C) procurement by departments and agen-

cies of the Federal Government and Stateand local governments; and

(D) federally funded or federally subsidizedprocurement by the private sector.SEC. 1335. CALCULATION OF AVOIDED COST.

Nothing in section 210 of the Public UtilityRegulatory Policies Act of 1978 (Public Law95-617) requires a State regulatory authorityor nonregulated electric utility to treat acost reasonably identified to be incurred orto have been incurred in the construction oroperation of a facility or a project which hasbeen selected by the Department of Energyand provided Federal funding pursuant tothe Clean Coal Program authorized by PublicLaw 98–473 as an incremental cost of alter-native electric energy.SEC. 1336. COAL FUEL MIXTURES.

Within one year following the date of en-actment of this Act, the Secretary shall sub-mit a report to the Committee on Energyand Commerce and the Committee onScience, Space, and Technology of the Houseof Representatives and the Committee onEnergy and Natural Resources of the Senateon the status of technologies for combiningcoal with other materials, such as oil orwater fuel mixtures. The report shall in-clude—

(1) a technical and economic feasibility as-sessment of such technologies;

(2) projected developments in such tech-nologies;

(3) an assessment of the market potentialof such technologies, including the potentialto displace imported crude oil and refined pe-troleum products;

(4) identification of barriers to commer-cialization of such technologies; and

(5) recommendations for addressing bar-riers to commercialization.SEC. 1337. NATIONAL CLEARINGHOUSE.

(a) FEASIBILITY.—(1) The Secretary shallassess the feasibility of establishing a na-tional clearinghouse for the exchange anddissemination of technical information ontechnology relating to coal and coal-derivedfuels.

(2) In assessing the feasibility, the Sec-retary shall consider whether such a clear-inghouse would be appropriate for purposesof—

(A) collecting information and data ontechnology relating to coal, and coal-derivedfuels, which can be utilized to improve envi-ronmental quality and increase energy inde-pendence;

(B) disseminating to appropriate individ-uals, governmental departments, agencies,and instrumentalities, institutions of highereducation, and other entities, informationand data collected pursuant to this section;

(C) maintaining a library of technologypublications and treatises relating to tech-nology information and data collected pursu-ant to this section;

(D) organizing and conducting seminars forgovernment officials, utilities, coal compa-nies, and other entities or institutions relat-

ing to technology using coal and coal-de-rived fuels that will improve environmentalquality and increase energy independence;

(E) gathering information on researchgrants made for the purpose of improving orenhancing technology relating to the use ofcoal, and coal-derived fuels, which will im-prove environmental quality and increaseenergy independence;

(F) translating into English foreign re-search papers, articles, seminar proceedings,test results that affect, or could affect, cleancoal use technology, and other documents;

(G) encouraging, during the testing oftechnologies, the use of coal from a varietyof domestic sources, and collecting or devel-oping, or both, complete listings of test re-sults using coals from all sources;

(H) establishing and maintaining an indexor compilation of research projects relatingto clean coal technology carried outthroughout the world; and

(I) conducting economic modeling for fea-sibility of projects.

(b) AUTHORITY TO ESTABLISH CLEARING-HOUSE.—Based upon the assessment undersubsection (a), the Secretary may establish aclearinghouse.SEC. 1338. COAL EXPORTS.

(a) PLAN.—Within 180 days after the date ofenactment of this Act, the Secretary of Com-merce, in cooperation with the Secretaryand other appropriate Federal agencies, shallsubmit to the appropriate committees of theHouse of Representatives and the Committeeon Energy and Natural Resources of the Sen-ate a plan for expanding exports of coalmined in the United States.

(b) PLAN CONTENTS.—The plan submittedunder subsection (a) shall include—

(1) a description of the location, size, andprojected growth in potential export mar-kets for coal mined in the United States;

(2) the identification by country of the for-eign trade barriers to the export of coalmined in the United States, including for-eign coal production and utilization sub-sidies, tax treatment, labor practices, tariffs,quotas, and other nontariff barriers;

(3) recommendations and a plan for ad-dressing any such trade barriers;

(4) an evaluation of existing infrastructurein the United States and any new infrastruc-ture requirements in the United States tosupport an expansion of exports of coalmined in the United States, including ports,vessels, rail lines, and any other supportinginfrastructure; and

(5) an assessment of environmental impli-cations of coal exports and the identificationof export opportunities for blending coalmined in the United States with coal indige-nous to other countries to enhance energyefficiency and environmental performance.SEC. 1339. OWNERSHIP OF COALBED METHANE.

(a) FEDERAL LANDS AND MINERAL RIGHTS.—In the case of any deposit of coalbed meth-ane where the United States is the owner ofthe surface estate or where the UnitedStates has transferred the surface estate butreserved the subsurface mineral estate, theSecretary of the Interior shall administerthis section. This section and the definitionscontained herein shall be applicable only onlands within Affected States.

(b) AFFECTED STATES.—Not later than 180days after the date of enactment of this Act,the Secretary of the Interior, with the par-ticipation of the Secretary of Energy, shallpublish in the Federal Register a list of Af-fected States which shall be comprised ofStates—

(1) in which the Secretary of the Interior,with the participation of the Secretary ofEnergy, determines that disputes, uncer-tainty, or litigation exist, regarding theownership of coalbed methane gas;

(2) in which the Secretary of the Interior,with the participation of the Secretary of


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1992 T121.25Energy, determines that development of sig-nificant deposits of coalbed methane gas isbeing impeded by such existing disputes, un-certainty, or litigation regarding ownershipof such coalbed methane;

(3) which do not have in effect a statutoryor regulatory procedure or existing case lawpermitting and encouraging the developmentof coalbed methane gas within that State;and

(4) which do not have extensive develop-ment of coalbed methane gas.The Secretary of the Interior, with the par-ticipation of the Secretary of Energy, shallrevise such list of Affected States from timeto time. Any Affected State shall be deletedfrom the list of Affected States upon the re-ceipt by the Secretary of the Interior of aGovernor’s petition requesting such deletion,a State law requesting such deletion, or aresolution requesting such deletion enactedby the legislative body of the State. A Gov-ernor intending to petition the Secretary ofthe Interior to delete a State from the list ofAffected States shall provide the State’s leg-islative body with 6 months notice of suchpetition during a legislative session. At theend of such 6-month period, the Governormay petition the Secretary of the Interior todelete a State from the list of AffectedStates, unless during such 6-month period,the State’s legislative body has enacted alaw or resolution disapproving the Gov-ernor’s petition. Until the Secretary of theInterior, with the participation of the Sec-retary of Energy, publishes a different list,the States of West Virginia, Pennsylvania,Kentucky, Ohio, Tennessee, Indiana, and Illi-nois shall be the Affected States, effective onthe date of the enactment of this Act. TheStates of Colorado, Montana, New Mexico,Wyoming, Utah, Virginia, Washington, Mis-sissippi, Louisiana, and Alabama shall not beincluded on the Secretary of the Interior’slist of Affected States or any extension or re-vision thereof.

(c) FAILURE TO ADOPT STATUTORY OR REGU-LATORY PROCEDURE.—If an Affected State hasnot placed in effect, by statute or by regula-tion, a substantial program promoting thepermitting, drilling and production of coal-bed methane wells (including pooling ar-rangements) within that State within 3years after becoming an Affected State, theSecretary of the Interior, with the participa-tion of the Secretary of Energy, shall admin-ister this section and shall promulgate suchregulations as are necessary to carry outthis section in that State.

(d) IMPLEMENTATION BY THE SECRETARY OFTHE INTERIOR.—In implementing this section,the Secretary of the Interior, with the par-ticipation of the Secretary of Energy, shall—

(A) consider existing and future coal min-ing plans,

(B) preserve the mineability of coal seams,and

(C) provide for the prevention of waste andmaximization of recovery of coal and coalbedmethane gas in a manner which will protectthe rights of all entities owning an interestin such coalbed methane resource.

(e) SPACING.—Except where State law in anAffected State contains existing spacing re-quirements regarding the minimum distancebetween coalbed methane wells and the min-imum distance of a coalbed methane wellfrom a property line, the Secretary of the In-terior shall establish such requirementswithin 90 days after the assertion of jurisdic-tion pursuant to subsection (c) of this sec-tion.

(f) SPACING UNITS.—Applications to estab-lish spacing units for the drilling and oper-ation of coalbed methane gas wells may befiled by any entity claiming a coalbed meth-ane ownership interest within a proposedspacing unit. Upon receipt and approval of

an application, the Secretary of the Interiorshall issue an order establishing the bound-aries of the coalbed methane spacing unit.Spacing units shall generally be uniform insize.

(g) DEVELOPMENT UNDER POOLING AR-RANGEMENT.—Following issuance of an orderestablishing a spacing unit under subsection(f), and pursuant to an application for pool-ing filed by the entity claiming a coalbedmethane ownership interest and proposing todrill a coalbed methane gas well, the Sec-retary of the Interior shall hold a hearing toconsider the application for pooling andshall, if the criteria of this section are met,issue an order allowing the proposed poolingof acreage within the designated spacingunit for purposes of drilling and productionof coalbed methane from the spacing unit.The pooling order shall not be issued beforenotice or a reasonable and diligent effort toprovide notice has been made to each entitywhich may claim an ownership interest inthe coalbed methane gas within such spacingunit and each such entity has been offered anopportunity to appear before the Secretaryof the Interior at the hearing. Upon issuanceof a pooling order, each owner or claimant ofan ownership interest shall be allowed tomake one of the following elections:

(1) An election to sell or lease its coalbedmethane ownership interest to the unit oper-ator at a rate determined by the Secretary ofthe Interior as set forth in the pooling order.

(2) An election to become a participatingworking interest owner by bearing a share ofthe risks and costs of drilling, completing,equipping, gathering, operating (includingall disposal costs), plugging and abandoningthe well, and receiving a share of productionfrom the well.

(3) An election to share in the operation ofthe well as a nonparticipating working inter-est owner by relinquishing its working inter-est to participating working interest ownersuntil the proceeds allocable to its shareequal 300 percent of the share of such costsallocable to its interest. Thereafter, the non-participating working interest owner shallbecome a participating working interestowner.The pooling order shall designate a unit op-erator who shall be authorized to drill andoperate the spacing unit. The pooling ordershall provide that any entity claiming anownership interest in the coalbed methanewithin such spacing unit which does notmake an election under the pooling ordershall be deemed to have leased its coalbedmethane interest to the unit operator undersuch terms and conditions as the poolingorder may provide. No pooling order may beissued under this paragraph for any spacingunit if all entities claiming an ownership in-terest in the coalbed methane in the spacingunit have entered into a voluntary agree-ment providing for the drilling and operationof the coalbed methane gas well for the spac-ing unit.

(h) ESCROW ACCOUNT.—(1) Each poolingorder issued under subsection (g) shall pro-vide for the establishment of an escrow ac-count into which the payment of costs andproceeds attributable to the conflicting in-terests shall be deposited and held for the in-terest of the claimants as follows:

(A) Each participating working interestowner, except for the unit operator, shall de-posit in the escrow account its proportionateshare of the costs allocable to the ownershipinterest claimed by each such participatingworking interest owner as set forth in thepooling order issued by the Secretary of theInterior.

(B) The unit operator shall deposit in theescrow account all proceeds attributable tothe conflicting interests of lessees, plus allproceeds in excess of ongoing operational ex-

penses (including reasonable overhead costs)attributable to conflicting working inter-ests.

(2) The Secretary of the Interior shallorder payment of principal and accrued in-terest from the escrow account to all legallyentitled entities within 30 days of receipt bythe Secretary of the Interior of notificationof the final legal determination of entitle-ment or upon agreement of all entitiesclaiming an ownership interest in the coal-bed methane gas. Upon such final determina-tion—

(A) each legally entitled participatingworking interest owner shall receive a pro-portionate share of the proceeds attributableto the conflicting ownership interest;

(B) each legally entitled nonparticipatingworking interest owner shall receive a pro-portionate share of the proceeds attributableto the conflicting ownership interest, lessthe cost of being carried as a nonparticipat-ing working interest owner (as determinedby the election of the entity under the appli-cable pooling order);

(C) each entity leasing (or deemed to haveleased) its coalbed methane ownership inter-est to the unit operator shall receive a shareof the royalty proceeds (as set out in the ap-plicable pooling order) attributable to theconflicting interests of lessees; and

(D) the unit operator shall receive thecosts contributed to the escrow account byeach legally entitled participating workinginterest owner.The Secretary of the Interior shall enactrules and regulations for the administrationand protection of funds delivered to the es-crow accounts.

(i) APPROVAL OF THE SECRETARY OF THE IN-TERIOR.—No entity may drill any well for theproduction of coalbed methane gas from acoal seam, subject to the provisions of sub-section (g), in an Affected State unless thedrilling of such well has been approved bythe Secretary of the Interior.

(j) AUTHORIZATION TO STIMULATE A COALSEAM.—(1) No operator of a coalbed methanewell may stimulate a coal seam without thewritten consent of each entity which, at thetime that the coalbed methane operator ap-plies for a drilling permit, is operating a coalmine, or has by virtue of his property rightsin the coal the ability to operate a coalmine, located within a horizontal or verticaldistance from the point of stimulation as es-tablished by the Secretary of the Interiorpursuant to paragraph (3) of this subsection.In seeking the coal operator’s consent, acoalbed methane well operator shall providethe coal operator with necessary informationabout such stimulation, including relevantinformation to ensure compliance with coalmine safety laws and rules.

(2) In the absence of a written consent pur-suant to pargraph (1) and at the request of acoalbed methane operator, the Secretary ofthe Interior shall make a determination re-garding stimulation of a coal seam. Such re-quest shall include an affidavit which shall—

(A) state that an entity from which con-sent is required pursuant to paragraph (1)has refused to provide written consent;

(B) set forth in detail the efforts under-taken by the applicant to obtain such writ-ten consent;

(C) state the known reasons for the con-sent not being provided;

(D) set forth the conditions and compensa-tion, if any, offered by the applicant as partof the efforts to obtain consent; and

(E) provide prima facie evidence that themethod of stimulation proposed by the coal-bed methane operator will not (i) cause un-reasonable loss or damage to the coal seamconsidering all factors, including the pros-pect, taking into consideration the econom-ics of the coal industry, that coal seams for

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OCTOBER 5T121.25which no actual or proposed mining plansexist will be mined at some future date, or(ii) violate mine safety requirements. If a de-nial of consent by a coal operator is based onreasons related to safety, the Secretary ofthe Interior shall seek the views and rec-ommendations of the appropriate State orFederal coal mine safety agency. Any deter-mination by the Secretary of the Interiorshall be in accordance with all applicableFederal and State coal mine safety laws andsuch views and recommendations. A deter-mination by the Secretary of the Interior ap-proving a method of stimulation may in-clude reasonable conditions including, butnot limited to, conditions to mitigate, to theextent practicable, economic damage to thecoal seam. Any determination approving ordenying a method of stimulation by the Sec-retary of the Interior shall be subject to ap-peal. Interested entities shall be allowed toparticipate in and comment on proceedingsunder this paragraph.

(3) The Secretary of the Interior shall byrule establish, for an Affected State, a regionthereof, or a multi-State region comprised ofAffected States, the boundaries within whicha coalbed methane operator shall be requiredto obtain written consent from a coal opera-tor pursuant to paragraph (1). Such bound-aries shall be stated in terms of a horizontaland a vertical distance from the point ofstimulation and shall be determined basedon an evaluation of the maximum length,height and depth of fracture producible in acoal seam in such Affected State, regionthereof, or multi-State region comprised ofAffected States.

(4) The consent required under this sub-section shall in no way be deemed to impair,abridge, or affect any contractual rights orobjections arising out of a coalbed methanegas contract or coalbed methane gas lease inexistence as of the effective date of this sec-tion between the coalbed methane operatorand the coal operator, and the existence ofsuch lease or contractual agreement and anyextensions or renewals of such lease shall bedeemed to fully meet the requirements ofthis section.

(5) Nothing in this subsection precludes ei-ther a coal operator or a coalbed methaneoperator from seeking in the appropriateState forum compensation for the con-sequences of a determination by the Sec-retary of the Interior pursuant to paragraph(2).

(k) NOTICE AND OBJECTION.—(1) The Sec-retary of the Interior shall not approve thedrilling of any coalbed methane well unlessthe unit operator has notified each entitywhich is operating, or has the ability, by vir-tue of his property rights in the coal, to op-erate, a coal mine in any portion of the coal-bed that would be affected by such well with-in the distances established pursuant to therules promulgated under subsection (j)(3).Any notified entity may object to the drill-ing of such well within 30 days after receiptof a notice. Upon receipt of a timely objec-tion to the drilling of any coalbed methanegas well submitted by a notified entity, theSecretary of the Interior may refuse to ap-prove the drilling of the well based on any ofthe following:

(A) The proposed activity, due to its prox-imity to any coal mine opening, shaft, un-derground workings, or to any proposed ex-tension of the coal mine, would adversely af-fect any operating, inactive or abandonedcoal mine, including any coal mine alreadysurveyed and platted but not yet being oper-ated.

(B) The proposed activity would not con-form with a coal operator’s developmentplan for an existing or proposed operation.

(C) There would be an unreasonable inter-ference from the proposed activity withpresent or future coal mining operations, in-

cluding the ability to comply with other ap-plicable laws and regulations.

(D) The presence of evidence indicatingthat the proposed drilling activities would beunsafe, taking into consideration the dan-gers from creeps, squeezes or other disturb-ances due to the extraction of coal.

(E) The proposed activity would unreason-ably interfere with the safe recovery of coal,oil and gas.

(2) In the event the Secretary of the Inte-rior does not approve the drilling of a coal-bed methane well pursuant to paragraph (1),the Secretary of the Interior shall considerwhether such drilling could be approved ifthe unit operator modifies the proposed ac-tivities to take into account any of the fol-lowing:

(A) The proposed activity could instead bereasonably done through an existing orplanned pillar of coal, or in close proximityto an existing well or such pillar of coal, tak-ing into consideration surface topography.

(B) The proposed activity could instead bemoved to a mined-out area, below the coaloutcrop or to some other feasible area.

(C) The unit operator agrees to a drillingmoratorium of not more than two years inorder to permit completion of coal miningoperations.

(D) The practicality of locating the pro-posed spacing unit or well on a uniform pat-tern with other spacing units or wells.

(l) PLUGGING.—All coalbed methane wellsdrilled after enactment of this Act that pen-etrate coal seams with remaining reservesshall provide for subsequent safe miningthrough the well in accordance with stand-ards prescribed by the Secretary of the Inte-rior, in consultation with any Federal andState agencies having authority over coalmine safety. Well plugging costs should beallocated in accordance with State law orprivate contractual arrangement, as the casemay be.

(m) NOTICE AND OBJECTION BY OTHER PAR-TIES.—The Secretary of the Interior shall notapprove the drilling of any coalbed methanewell unless such well complies with the spac-ing and other requirements established bythe Secretary of the Interior and each of thefollowing:

(1) The unit operator of such well has noti-fied, or has made a reasonable and diligenteffort to notify, all entities claiming owner-ship of coalbed methane to be drained bysuch well and provided an opportunity to ob-ject in accordance with requirements estab-lished by the Secretary of the Interior.

(2) Where conflicting interests exist, anorder under subsection (g) establishing pool-ing requirements has been issued.The notification requirements of this sub-section shall be additional to the notifica-tion referred to in subsection (k). The Sec-retary of the Interior shall establish the con-ditions under which entities claiming owner-ship of coalbed methane may object to thedrilling of a coalbed methane well.

(n) VENTING FOR SAFETY.—Nothing in thissection shall be construed to prevent or in-hibit the entity which has the right to de-velop and mine coal in any mine from vent-ing coalbed methane gas to ensure safe mineoperations.

(o) OTHER LAWS.—The Secretary of the In-terior shall comply with all applicable Fed-eral and State coal mine safety laws and reg-ulations.

(p) DEFINITIONS.—As used in this section—(1) The term ‘‘Affected State’’ means a

State listed by the Secretary of the Interior,with the participation of the Secretary ofEnergy, under subsection (b).

(2) The term ‘‘coalbed methane gas’’ meansoccluded natural gas produced (or which maybe produced) from coalbeds and rock strataassociated therewith.

(3) The term ‘‘unit operator’’ means the en-tity designated in a pooling order to developa spacing unit by the drilling of one or morewells on the unit.

(4) The term ‘‘nonparticipating working in-terest owner’’ means a gas or oil owner of atract included in a spacing unit which electsto share in the operation of the well on acarried basis by agreeing to have its propor-tionate share of the costs allocable to its in-terest charged against its share of produc-tion of the well in accordance with sub-section (f)(3).

(5) The term ‘‘participating working inter-est owner’’ means a gas or oil owner whichelects to bear a share of the risks and costsof drilling, completing, equipping, gathering,operating (including any and all disposalcosts) plugging, and abandoning a well on aspacing unit and to receive a share of pro-duction from the well equal to the propor-tion which the acreage in the spacing unit itowns or holds under lease bears to the totalacreage of the spacing unit.

(6) The term ‘‘coal seam’’ means any stra-tum of coal 20 inches or more in thickness,unless a stratum of less thickness is beingcommercially worked, or can in the judg-ment of the Secretary of the Interiorforseeably be commercially worked and willrequire protection if wells are being drilledthrough it.SEC. 1340. ESTABLISHMENT OF DATA BASE AND

STUDY OF TRANSPORTATION RATES.(a) DATA BASE.—The Secretary shall re-

view the information currently collected bythe Federal Government and shall determinewhether information on transportation ratesfor rail and pipeline transport of domesticcoal, oil, and gas during the period of Janu-ary 1, 1988, through December 31, 1997, is rea-sonably available. If he determines that suchinformation is not reasonably available, theSecretary shall establish a data base con-taining, to the maximum extent practicable,information on all such rates. The confiden-tiality of contract rates shall be preserved.To obtain data pertaining to rail contractrates, the Secretary shall acquire such datain aggregate form only from the InterstateCommerce Commission, under terms andconditions that maintain the confidentialityof such rates.

(b) STUDY.—The Energy Information Ad-ministration shall determine the extent towhich any agency of the Federal Govern-ment is studying the rates and distributionpatterns of domestic coal, oil, and gas to de-termine the impact of the Clean Air Act asamended by the Act entitled ‘‘An Act toamend the Clean Air Act to provide for at-tainment and maintenance of health protec-tive national ambient air quality standards,and for other purposes.’’, enacted November15, 1990 (Public Law 101–549), and other Fed-eral policies on such rates and distributionpatterns. If the Energy Information Admin-istration finds that no such study is under-way, or that reports of the results of suchstudy will not be available to the Congressproviding the information specified in thissubsection and subsection (a) by the datesestablished in subsection (c), the Energy In-formation Administration shall initiate sucha study.

(c) REPORTS TO CONGRESS.—Within oneyear after the date of enactment of this Act,the Secretary shall report to the Congress onthe determination the Energy InformationAdministration is required to make undersubsection (b). Within three years after thedate of enactment of this Act, the Secretaryshall submit reports on any data base orstudy developed under this section. Any suchreports shall be updated and resubmitted tothe Congress within eight years after suchdate of enactment. If the Energy Informa-tion Administration has determined pursu-


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1992 T121.25ant to subsection (b) that another study orstudies will provide all or part of the infor-mation called for in this section, the Sec-retary shall transmit the results of thatstudy by the dates established in this sub-section, together with his comments.

(d) CONSULTATION WITH OTHER AGENCIES.—The Secretary and the Energy InformationAdministration shall consult with the Chair-men of the Federal Energy Regulatory Com-mission and the Interstate Commerce Com-mission in implementing this section.SEC. 1341. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for carrying out this subtitle,other than section 1322, such sums as may benecessary for fiscal years 1993 through 1998.

TITLE XIV—STRATEGIC PETROLEUMRESERVE

SEC. 1401. DRAWDOWN AND DISTRIBUTION OFTHE RESERVE.

Section 161 of the Energy Policy and Con-servation Act (42 U.S.C. 6241) is amended—

(1) in subsection (d)—(A) by striking ‘‘(d)’’ and inserting ‘‘(d)(1)’’;

and(B) by adding at the end the following new

paragraph:‘‘(2) For purposes of this section, in addi-

tion to the circumstances set forth in sec-tion 3(8), a severe energy supply interruptionshall be deemed to exist if the President de-termines that—

‘‘(A) an emergency situation exists andthere is a significant reduction in supplywhich is of significant scope and duration;

‘‘(B) a severe increase in the price of petro-leum products has resulted from such emer-gency situation; and

‘‘(C) such price increase is likely to causea major adverse impact on the national econ-omy.’’; and

(2) in subsection (h)(1)(A), by inserting ‘‘orinternational’’ after ‘‘domestic’’.SEC. 1402. EXPANSION OF RESERVE.

Section 154(a) of the Energy Policy andConservation Act (42 U.S.C. 6234) is amend-ed—

(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;and

(2) by adding at the end the following:‘‘(2) Beginning on the date of the enact-

ment of the Energy Policy Act of 1992, thePresident shall take actions to enlarge theStrategic Petroleum Reserve to 1,000,000,000barrels as rapidly as possible. Such actionsmay include—

‘‘(A) petroleum acquisition, transpor-tation, and injection activities at the high-est practicable fill rate achievable, subjectto the availability of appropriated funds;

‘‘(B) contracting for petroleum product notowned by the United States as specified inpart C;

‘‘(C) contracting for petroleum product forstorage in facilities not owned by the UnitedStates, except that no such product may bestored in such facilities unless petroleumproduct stored in facilities owned by theUnited States on the date such product is de-livered for storage is at least 750,000,000 bar-rels;

‘‘(D) carrying out the activities describedin section 160(h);

‘‘(E) the transferring of oil from the NavalPetroleum Reserve; and

‘‘(F) other activities specified in thistitle.’’.SEC. 1403. AVAILABILITY OF FUNDING FOR LEAS-

ING.Section 171 of the Energy Policy and Con-

servation Act (42 U.S.C. 6249) is amended byadding at the end the following new sub-section:

‘‘(f) AVAILABILITY OF FUNDS.—The Sec-retary may utilize such funds as are avail-able in the SPR Petroleum Account to carry

out the activities described in subsection (a),and may obligate and expend such funds tocarry out such activities, in advance of thereceipt of petroleum products.’’.

SEC. 1404. PURCHASE FROM STRIPPER WELLPROPERTIES.

(a) IN GENERAL.—Section 160 of the EnergyPolicy and Conservation Act (42 U.S.C. 6240)is amended by adding at the end the follow-ing new subsection:

‘‘(h)(1) If the President finds that declinesin the production of oil from domestic re-sources pose a threat to national energy se-curity, the President may direct the Sec-retary to acquire oil from domestic produc-tion of stripper well properties for storage inthe Strategic Petroleum Reserve. Except asprovided in paragraph (2), the Secretary mayset such terms and conditions as he deemsnecessary for such acquisition.

‘‘(2) Crude oil purchased by the Secretarypursuant to this subsection shall be by com-petitive bid. The price paid by the Sec-retary—

‘‘(A) shall take into account the cost ofproduction including costs of reservoir andwell maintenance; and

‘‘(B) shall not exceed the price that wouldhave been paid if the Secretary had acquiredpetroleum products of a similar quality onthe open market under competitive bid pro-cedures without regard to the source of thepetroleum products.’’.

(b) TECHNICAL CORRECTIONS.—Part B oftitle I of such Act is amended—

(1) in section 167(d), in the matter preced-ing paragraph (1), by striking ‘‘subsection(g)’’ and inserting ‘‘under subsection (g)’’;and

(2) in section 160(d)(2)—(A) by striking ‘‘(2)(A)’’ and inserting

‘‘(2)’’; and(B) by redesignating clauses (i), (ii), and

(iii) as subparagraphs (A), (B), and (C), re-spectively.

SEC. 1405. REDESIGNATION OF ISLAND STATES.

Section 157(a) of the Energy Policy andConservation Act (42 U.S.C. 6237(a)) isamended—

(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;and


‘‘(2) For the purpose of carrying out thissection—

‘‘(A) any State that is an island shall beconsidered to be a separate Federal EnergyAdministration Region, as defined in title 10,Code of Federal Regulations, as in effect onNovember 1, 1975;

‘‘(B) determinations made with respect toRegions, other than States that are islands,shall be made as if the islands were not partof the Regions; and

‘‘(C) with respect to determinations madefor any State that is an island, the term ‘re-fined petroleum product’ shall have the samemeaning given the term ‘petroleum product’in section 3(3).’’.

SEC. 1406. INSULAR AREAS STUDY.

(a) IN GENERAL.—The Secretary shall con-duct a study of the implications of theunique vulnerabilities of the insular areas toan oil supply disruption. Such study shalloutline how the insular areas shall gain ac-cess to vital oil supplies during times of na-tional emergency. Such study shall be com-pleted and submitted to the Congress notlater than 9 months after the date of the en-actment of this Act.

(b) DEFINITION.—For purposes of this sec-tion, the term ‘‘insular areas’’ means theVirgin Islands, Puerto Rico, Guam, Amer-ican Samoa, the Commonwealth of theNorthern Mariana Islands, and Palau.

TITLE XV—OCTANE DISPLAY ANDDISCLOSURE

SEC. 1501. CERTIFICATION AND POSTING OFAUTOMOTIVE FUEL RATINGS.

(a) COVERAGE OF ALL LIQUID AUTOMOTIVEFUELS.—Section 201(6) of the Petroleum Mar-keting Practices Act (15 U.S.C. 2821(6)) isamended to read as follows:

‘‘(6) The term ‘automotive fuel’ means liq-uid fuel of a type distributed for use as a fuelin any motor vehicle.’’.

(b) AUTOMOTIVE FUEL RATING.—Section 201of such Act (15 U.S.C. 2821) is amended byadding at the end the following new para-graphs:

‘‘(17) The term ‘automotive fuel rating’means—

‘‘(A) the octane rating of an automotivespark-ignition engine fuel; and

‘‘(B) if provided for by the Federal TradeCommission by rule, the cetane rating of die-sel fuel oils; or

‘‘(C) another form of rating determined bythe Federal Trade Commission, after con-sultation with the American Society forTesting and Materials, to be more appro-priate to carry out the purposes of this titlewith respect to the automotive fuel con-cerned.

‘‘(18)(A) The term ‘cetane rating’ means ameasure, as indicated by a cetane index orcetane number, of the ignition quality of die-sel fuel oil and of the influence of the dieselfuel oil on combustion roughness.

‘‘(B) The term ‘cetane index’ and the term‘cetane number’ have the meanings deter-mined in accordance with the test methodsset forth in the American Society for Test-ing and Materials standard test methods—

‘‘(i) designated D976 or D4737 in the case ofcetane index; and

‘‘(ii) designated D613 in the case of cetanenumber,(as in effect on the date of the enactment ofthis Act) and shall apply to any grade ortype of diesel fuel oils defined in the speci-fication of the American Society for Testingand Materials entitled ‘Standard Specifica-tion for Diesel Fuel Oils’ designated D975 (asin effect on such date).’’.

(c) CONFORMING AMENDMENTS.—(1) Section201 of such Act (15 U.S.C. 2821) is amended—

(A) in paragraph (1), by striking out ‘‘gaso-line’’ and inserting in lieu thereof ‘‘fuel’’;

(B) in paragraph (2)—(i) by striking out ‘‘Standard Specifica-

tions for Automotive Gasoline’’ and insert-ing in lieu thereof ‘‘Standard Specificationfor Automotive Spark-Ignition EngineFuel’’; and

(ii) by striking out ‘‘D 439’’ and inserting inlieu thereof ‘‘D4814’’;

(C) in paragraph (4)—(i) by striking out ‘‘gasoline’’ the first

place it appears and inserting in lieu thereof‘‘automotive fuel’’; and

(ii) by striking out ‘‘gasoline’’ the secondplace it appears and inserting in lieu thereof‘‘fuel’’;

(D) by striking out paragraph (5) and in-serting in lieu thereof the following:

‘‘(5) The term ‘refiner’ means any personengaged in the production or importation ofautomotive fuel.’’;

(E) in paragraph (11)—(i) by striking out ‘‘octane’’ each place it

appears and inserting in lieu thereof ‘‘auto-motive fuel’’; and

(ii) by striking out ‘‘gasoline’’ each place itappears and inserting in lieu thereof ‘‘fuel’’;and

(F) in paragraph (16), by striking out ‘‘gas-oline’’ each place it appears and inserting inlieu thereof ‘‘automotive fuel’’.

(2) Section 202 of such Act (15 U.S.C. 2822)is amended—

(A) by striking out ‘‘octane rating’’ and‘‘octane ratings’’ each place such terms ap-

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OCTOBER 5T121.25pear and inserting in lieu thereof ‘‘auto-motive fuel rating’’ and ‘‘automotive fuelratings’’, respectively;

(B) in subsections (a) and (b), by strikingout ‘‘gasoline’’ each place it appears and in-serting in lieu thereof ‘‘fuel’’;

(C) in subsection (c)—(i) by striking out ‘‘gasoline’’ each place it

appears (other than the second place it ap-pears) and inserting in lieu thereof ‘‘auto-motive fuel’’; and

(ii) by striking out ‘‘gasoline’’ the secondplace it appears and inserting in lieu thereof‘‘fuel’’;

(D) in subsection (d), by striking out ‘‘oc-tane’’ and inserting in lieu thereof ‘‘auto-motive fuel’’;

(E) in subsection (e)—(i) by striking out ‘‘gasoline’’ each place it

appears and inserting in lieu thereof ‘‘fuel’’;and

(ii) by striking out ‘‘gasoline’s’’ and insert-ing in lieu thereof ‘‘fuel’s’’;

(F) in subsections (f), (g), and (h), by strik-ing out ‘‘gasoline’’ each place it appears andinserting in lieu thereof ‘‘fuel’’;

(G) in subsection (h), by striking out ‘‘oc-tane requirement’’ each place it appears andinserting in lieu thereof ‘‘automotive fuel re-quirement’’; and

(H) in the section heading, by striking out‘‘OCTANE’’ and inserting in lieu thereof‘‘AUTOMOTIVE FUEL RATING’’.

(3) Section 203 of such Act (15 U.S.C. 2823)is amended—

(A) by striking out ‘‘octane rating’’ and‘‘octane ratings’’ each place such terms ap-pear and inserting in lieu thereof ‘‘auto-motive fuel rating’’ and ‘‘automotive fuelratings’’, respectively;

(B) in subsections (b) and (c), by strikingout ‘‘gasoline’’ each place it appears and in-serting in lieu thereof ‘‘fuel’’; and

(C) in subsection (c)(3), by striking out‘‘201(1)’’ and inserting in lieu thereof ‘‘201’’.

(e) EFFECTIVE DATE.—(1) The amendmentsmade by this section shall become effectiveat the end of the one-year period beginningon the date of the enactment of this Act.

(2) The Federal Trade Commission shall,within 270 days after the date of the enact-ment of this Act, prescribe rules for the pur-pose of implementing the amendments madein this section.SEC. 1502. INCREASED AUTHORITY FOR EN-

FORCEMENT.(a) STATE LAW.—Section 204 of the Petro-

leum Marketing Practices Act (15 U.S.C.2824) is amended to read as follows:

‘‘RELATIONSHIP OF THIS TITLE TO STATE LAW

‘‘SEC. 204. (a) To the extent that any provi-sion of this title applies to any act or omis-sion, no State or any political subdivisionthereof may adopt or continue in effect, ex-cept as provided in subsection (b), any provi-sion of law or regulation with respect tosuch act or omission, unless such provisionof such law or regulation is the same as theapplicable provision of this title.

‘‘(b) A State or political subdivision there-of may provide for any investigative or en-forcement action, remedy, or penalty (in-cluding procedural actions necessary tocarry out such investigative or enforcementactions, remedies, or penalties) with respectto any provision of law or regulation per-mitted by subsection (a).’’.

(b) FTC ENFORCEMENT.—Section 203(e) ofsuch Act is amended by striking out ‘‘; ex-cept that’’ in the second sentence and allthat follows through the period and insertingin lieu thereof a period.

(c) EPA ENFORCEMENT.—Section 203(b)(1) ofsuch Act is amended—

(1) in the matter preceding subparagraph(A), by striking out ‘‘shall’’;

(2) in subparagraph (A), by striking out‘‘conduct’’ and inserting in lieu thereof‘‘may conduct’’;

(3) in subparagraph (B), by striking out‘‘certify’’ and inserting in lieu thereof ‘‘shallcertify’’;

(4) in subparagraph (C), by striking out‘‘notify’’ and inserting in lieu thereof ‘‘shallnotify’’; and

(5) in subparagraph (C), by striking out‘‘discovered’’ and all that follows through‘‘testing’’.SEC. 1503. STUDIES.

(a) IN GENERAL.—For the purpose of mak-ing the findings, conclusions, and rec-ommendations referred to in subsection (c)—

(1) the Administrator of the Environ-mental Protection Agency, in consultationwith the Secretary of Energy, shall carry outa study to determine whether, and if so, how,the anti-knock characteristics of nonliquidfuels usable as a fuel for a motor vehicle (asdefined in section 201(7) of the PetroleumMarketing Practices Act) can be determined;and

(2) the Federal Trade Commission, in con-sultation with the Administrator of the En-vironmental Protection Agency, shall carryout a study—

(A) to determine the need for, and the de-sirability of, having a uniform national labelon devices used to dispense automotive fuelto consumers that would consolidate infor-mation required by Federal law to be postedon such devices; and

(B) to determine the nature of such label ifit is determined under subparagraph (A) thatsuch a need exists.

(b) IMPLEMENTATION.—(1) In carrying outstudies under this section, each agencyshall—

(A) publish general notice of each of thestudies in the Federal Register; and

(B) give interested parties an opportunityto participate in such studies through sub-mission of written data, views, or argu-ments.

(2) In carrying out the study to determinethe nature of a uniform national label undersubsection (a)(2)(B), the Federal Trade Com-mission shall—

(A) weigh the consumer, environmental,and energy saving benefits of any element ofsuch label against the necessity for a con-cise, practical, and cost-efficient label; and

(B) consider as a possible element of suchlabel a statement suggesting consumerscheck the vehicle’s owner’s manual regard-ing octane requirements.

(c) REPORTS.—The Administrator of theEnvironmental Protection Agency, the Sec-retary of Energy, and the Chairman of theFederal Trade Commission shall transmit tothe Congress, within one year after the dateof the enactment of this Act, the findings,conclusions, and recommendations made as aresult of the studies carried out by such offi-cers under this section, together with a de-scription of the administrative and legisla-tive actions needed to implement such rec-ommendations.

TITLE XVI—GLOBAL CLIMATE CHANGESEC. 1601. REPORT.

Not later than 2 years after the date of theenactment of this Act, the Secretary shallsubmit a report to the Congress that in-cludes an assessment of—

(1) the feasibility and economic, energy,social, environmental, and competitive im-plications, including implications for jobs, ofstabilizing the generation of greenhousegases in the United States by the year 2005;

(2) the recommendations made in chapter 9of the 1991 National Academy of Sciences re-port entitled ‘‘Policy Implications of Green-house Warming’’, including an analysis ofthe benefits and costs of each recommenda-tion;

(3) the extent to which the United States isresponding, compared with other countries,to the recommendations made in chapter 9 of

the 1991 National Academy of Sciences re-port;

(4) the feasibility of reducing the genera-tion of greenhouse gases;

(5) the feasibility and economic, energy,social, environmental, and competitive im-plications, including implications for jobs, ofachieving a 20 percent reduction from 1988levels in the generation of carbon dioxide bythe year 2005 as recommended by the 1988 To-ronto Scientific World Conference on theChanging Atmosphere;

(6) the potential economic, energy, social,environmental, and competitive implica-tions, including implications for jobs, of im-plementing the policies necessary to enablethe United States to comply with any obliga-tions under the United Nations FrameworkConvention on Climate Change or subsequentinternational agreements.SEC. 1602. LEAST-COST ENERGY STRATEGY.

(a) STRATEGY.—The first National EnergyPolicy Plan (in this title referred to as the‘‘Plan’’) under section 801 of the Departmentof Energy Organization Act (42 U.S.C. 7321)prepared and required to be submitted by thePresident to Congress after February 1, 1993,and each subsequent such Plan, shall includea least-cost energy strategy prepared by theSecretary. In developing the least-cost en-ergy strategy, the Secretary shall take intoconsideration the economic, energy, social,environmental, and competitive costs andbenefits, including costs and benefits forjobs, of his choices. Such strategy shall alsotake into account the report required undersection 1601 and relevant Federal, State, andlocal requirements. Such strategy shall bedesigned to achieve to the maximum extentpracticable and at least-cost to the Nation—

(1) the energy production, utilization, andenergy conservation priorities of subsection(d);

(2) the stabilization and eventual reductionin the generation of greenhouse gases;

(3) an increase in the efficiency of the Na-tion’s total energy use by 30 percent over1988 levels by the year 2010;

(4) an increase in the percentage of energyderived from renewable resources by 75 per-cent over 1988 levels by the year 2005; and

(5) a reduction in the Nation’s oil consump-tion from the 1990 level of approximately 40percent of total energy use to 35 percent bythe year 2005.

(b) ADDITIONAL CONTENTS.—The least-costenergy strategy shall also include—

(1) a comprehensive inventory of availableenergy and energy efficiency resources andtheir projected costs, taking into account allcosts of production, transportation, distribu-tion, and utilization of such resources, in-cluding—

(A) coal, clean coal technologies, coal seammethane, and underground coal gasification;

(B) energy efficiency, including existingtechnologies for increased efficiency in pro-duction, transportation, distribution, andutilization of energy, and other technologiesthat are anticipated to be available throughfurther research and development; and

(C) other energy resources, such as renew-able energy, solar energy, nuclear fission, fu-sion, geothermal, biomass, fuel cells, hydro-power, and natural gas;

(2) a proposed two-year program for ensur-ing adequate supplies of the energy and en-ergy efficiency resources and technologiesdescribed in paragraph (1), and an identifica-tion of administrative actions that can beundertaken within existing Federal author-ity to ensure their adequate supply;

(3) estimates of life-cycle costs for existingenergy production facilities;

(4) basecase forecasts of short-term andlong-term national energy needs under lowand high case assumptions of economicgrowth; and


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eral authorities needed to achieve the pur-poses of this section, and of any inadequaciesin those authorities.

(c) SECRETARIAL CONSIDERATION.—In devel-oping the least-cost energy strategy, theSecretary shall give full consideration to—

(1) the relative costs of each energy and en-ergy efficiency resource based upon a com-parison of all direct and quantifiable netcosts for the resource over its available life,including the cost of production, transpor-tation, distribution, utilization, waste man-agement, environmental compliance, and, inthe case of imported energy resources, main-taining access to foreign sources of supply;and

(2) the economic, energy, social, environ-mental, and competitive consequences re-sulting from the establishment of any par-ticular order of Federal priority as deter-mined under subsection (d).

(d) PRIORITIES.—The least-cost energystrategy shall identify Federal priorities, in-cluding policies that—

(1) implement standards for more efficientuse of fossil fuels;

(2) increase the energy efficiency of exist-ing technologies;

(3) encourage technologies, including cleancoal technologies, that generate lower levelsof greenhouse gases;

(4) promote the use of renewable energy re-sources, including solar, geothermal, sus-tainable biomass, hydropower, and windpower;

(5) affect the development and consump-tion of energy and energy efficiency re-sources and electricity through tax policy;

(6) encourage investment in energy effi-cient equipment and technologies; and

(7) encourage the development of energytechnologies, such as advanced nuclear fis-sion and nuclear fusion, that produce energywithout greenhouse gases as a byproduct,and encourage the deployment of nuclearelectric generating capacity.

(e) ASSUMPTIONS.—The Secretary shall in-clude in the least-cost energy strategy anidentification of all of the assumptions usedin developing the strategy and prioritiesthereunder, and the reasons for such assump-tions.

(f) PREFERENCE.—When comparing an en-ergy efficiency resource to an energy re-source, a higher priority shall be assigned tothe energy efficiency resource whenever alldirect and quantifiable net costs for the re-source over its available life are equal to theestimated cost of the energy resource.

(g) PUBLIC REVIEW AND COMMENT.—TheSecretary shall provide for a period of publicreview and comment of the least-cost energystrategy, for a period of at least 30 days, tobe completed at least 60 days before theissuance of such strategy. The Secretaryshall also provide for public review and com-ment before the issuance of any update tothe least-cost energy strategy required underthis section.SEC. 1603. DIRECTOR OF CLIMATE PROTECTION.

Within 6 months after the date of the en-actment of this Act, the Secretary shall es-tablish, within the Department of Energy, aDirector of Climate Protection (in this sec-tion referred to as the ‘‘Director’’). The Di-rector shall—

(1) in the absence of the Secretary, serve asthe Secretary’s representative for inter-agency and multilateral policy discussions ofglobal climate change, including the activi-ties of the Committee on Earth and Environ-mental Sciences as established by the GlobalChange Research Act of 1990 (Public Law 101–606) and the Policy Coordinating CommitteeWorking Group on Climate Change;

(2) monitor, in cooperation with other Fed-eral agencies, domestic and international

policies for their effects on the generation ofgreenhouse gases; and

(3) have the authority to participate in theplanning activities of relevant Departmentof Energy programs.SEC. 1604. ASSESSMENT OF ALTERNATIVE POL-

ICY MECHANISMS FOR ADDRESSINGGREENHOUSE GAS EMISSIONS.

Not later than 18 months after the date ofthe enactment of this Act, the Secretaryshall transmit a report to Congress contain-ing a comparative assessment of alternativepolicy mechanisms for reducing the genera-tion of greenhouse gases. Such assessmentshall include a short-run and long-run analy-sis of the social, economic, energy, environ-mental, competitive, and agricultural costsand benefits, including costs and benefits forjobs and competition, and the practicality ofeach of the following policy mechanisms:

(1) Various systems for controlling thegeneration of greenhouse gases, includingcaps for the generation of greenhouse gasesfrom major sources and emissions tradingprograms.

(2) Federal standards for energy efficiencyfor major sources of greenhouse gases, in-cluding efficiency standards for powerplants, industrial processes, automobile fueleconomy, appliances, and buildings, and foremissions of methane.

(3) Various Federal and voluntary incen-tives programs.SEC. 1605. NATIONAL INVENTORY AND VOL-

UNTARY REPORTING OF GREEN-HOUSE GASES.

(a) NATIONAL INVENTORY.—Not later thanone year after the date of the enactment ofthis Act, the Secretary, through the EnergyInformation Administration, shall develop,based on data available to, and obtained by,the Energy Information Administration, aninventory of the national aggregate emis-sions of each greenhouse gas for each cal-endar year of the baseline period of 1987through 1990. The Administrator of the En-ergy Information Administration shall annu-ally update and analyze such inventory usingavailable data. This subsection does not pro-vide any new data collection authority.

(b) VOLUNTARY REPORTING.—(1) ISSUANCE OF GUIDELINES.—Not later

than 18 months after the date of the enact-ment of this Act, the Secretary shall, afteropportunity for public comment, issue guide-lines for the voluntary collection and report-ing of information on sources of greenhousegases. Such guidelines shall establish proce-dures for the accurate voluntary reporting ofinformation on—

(A) greenhouse gas emissions—(i) for the baseline period of 1987 through

1990; and(ii) for subsequent calendar years on an an-

nual basis;(B) annual reductions of greenhouse gas

emissions and carbon fixation achievedthrough any measures, including fuel switch-ing, forest management practices, treeplanting, use of renewable energy, manufac-ture or use of vehicles with reduced green-house gas emissions, appliance efficiency,energy efficiency, methane recovery, cogen-eration, chlorofluorocarbon capture and re-placement, and power plant heat rate im-provement;

(C) reductions in greenhouse gas emissionsachieved as a result of—

(i) voluntary reductions;(ii) plant or facility closings; and(iii) State or Federal requirements; and(D) an aggregate calculation of greenhouse

gas emissions by each reporting entity.Such guidelines shall also establish proce-dures for taking into account the differentialradiative activity and atmospheric lifetimesof each greenhouse gas.

(2) REPORTING PROCEDURES.—The Adminis-trator of the Energy Information Adminis-

tration shall develop forms for voluntary re-porting under the guidelines establishedunder paragraph (1), and shall make suchforms available to entities wishing to reportsuch information. Persons reporting underthis subsection shall certify the accuracy ofthe information reported.

(3) CONFIDENTIALITY.—Trade secret andcommercial or financial information that isprivileged or confidential shall be protectedas provided in section 552(b)(4) of title 5,United States Code.

(4) ESTABLISHMENT OF DATA BASE.—Notlater than 18 months after the date of the en-actment of this Act, the Secretary, throughthe Administrator of the Energy InformationAdministration, shall establish a data basecomprised of information voluntarily re-ported under this subsection. Such informa-tion may be used by the reporting entity todemonstrate achieved reductions of green-house gases.

(c) CONSULTATION.—In carrying out thissection, the Secretary shall consult, as ap-propriate, with the Administrator of the En-vironmental Protection Agency.SEC. 1606. REPEAL.

Title III of the Energy Security Act (42U.S.C. 7361 et seq.) is hereby repealed.SEC. 1607. CONFORMING AMENDMENT.

The Secretary, through the Trade Pro-motion Coordinating Council, shall developpolicies and programs to encourage the ex-port and promotion of domestic energy re-source technologies, including renewable en-ergy, energy efficiency, and clean coal tech-nologies, to developing countries.SEC. 1608. INNOVATIVE ENVIRONMENTAL TECH-

NOLOGY TRANSFER PROGRAM.(a) ESTABLISHMENT OF PROGRAM.—The Sec-

retary, through the Agency for InternationalDevelopment, and in consultation with theinteragency working group established undersection 256(d) of the Energy Policy and Con-servation Act (in this section referred to asthe ‘‘interagency working group’’, shall es-tablish a technology transfer program tocarry out the purposes described in sub-section (b). Within 150 days after the date ofthe enactment of this Act, the Secretary andthe Administrator of the Agency for Inter-national Development shall enter into awritten agreement to carry out this section.The agreement shall establish a procedurefor resolving any disputes between the Sec-retary and the Administrator regarding theimplementation of specific projects. With re-spect to countries not assisted by the Agen-cy for International Development, the Sec-retary may enter into agreements with otherappropriate Federal agencies. If the Sec-retary and the Administrator, or the Sec-retary and an agency described in the pre-vious sentence, are unable to reach an agree-ment, each shall send a memorandum to thePresident outlining an appropriate agree-ment. Within 90 days after receipt of eithermemorandum, the President shall determinewhich version of the agreement shall be ineffect. Any agreement entered into underthis subsection shall be provided to the ap-propriate committees of the Congress andmade available to the public.


(1) reduce the United States balance oftrade deficit through the export of UnitedStates energy technologies and techno-logical expertise;


(3) encourage the export of United Statestechnologies, including services relatedthereto, to those countries that have a needfor developmentally sound facilities to pro-vide energy derived from technologies thatsubstantially reduce environmental pollut-ants, including greenhouse gases;

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nologies, including services related thereto,that substantially reduce environmental pol-lutants, including greenhouse gases, thatmeet the energy and environmental require-ments of foreign countries;

(5) better ensure that United States par-ticipation in energy-related projects in for-eign countries includes participation byUnited States firms as well as utilization ofUnited States technologies;

(6) ensure the introduction of UnitedStates firms and expertise in foreign coun-tries;

(7) provide financial assistance by the Fed-eral Government to foster greater participa-tion by United States firms in the financing,ownership, design, construction, or operationof technologies or services that substantiallyreduce environmental pollutants, includinggreenhouse gases; and


(c) IDENTIFICATION.—Pursuant to the agree-ments required by subsection (a), the Sec-retary, through the Agency for InternationalDevelopment, and after consultation withthe interagency working group, UnitedStates firms, and representatives from for-eign countries, shall develop mechanisms toidentify potential energy projects in hostcountries that substantially reduce environ-mental pollutants, including greenhousegases, and shall identify a list of suchprojects within 240 days after the date of theenactment of this Act, and periodicallythereafter.


(A) establish appropriate financial mecha-nisms to increase the participation of UnitedStates firms in energy projects, and servicesrelated thereto, that substantially reduceenvironmental pollutants, including green-house gases in foreign countries;


(C) provide financial assistance to supportprojects.


(A) provided in combination with otherforms of financial assistance, including non-Federal funding that may be available forthe project; and

(B) utilized in conjunction with financialassistance programs available through otherFederal agencies.


(e) SOLICITATIONS FOR PROJECT PROPOS-ALS.—(1) Pursuant to the agreements undersubsection (a), the Secretary, through theAgency for International Development, with-in one year after the date of the enactmentof this Act, and subsequently as appropriatethereafter, shall solicit proposals fromUnited States firms for the design, construc-tion, testing, and operation of the project orprojects identified under subsection (c)which propose to utilize a United Statestechnology or service. Each solicitationunder this section shall establish a closingdate for receipt of proposals.

(2) The solicitation under this subsectionshall, to the extent appropriate, be modeledafter the RFP No. DE–PS01–90FE62271 CleanCoal Technology IV, as administered by theDepartment of Energy.



(B) The project shall utilize a UnitedStates technology, including services relatedthereto, that substantially reduce environ-mental pollutants, including greenhousegases, in meeting the applicable energy andenvironmental requirements of the hostcountry.


(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the agreements under sub-section (a), the Secretary, through the Agen-cy for International Development, and inconsultation with the interagency workinggroup, shall establish a procedure to providefinancial assistance to United States firmsunder this section for a project identifiedunder subsection (c) where solicitations forthe project are being conducted by the hostcountry or by a multilateral lending institu-tion.

(g) OTHER PROGRAM REQUIREMENTS.—Pur-suant to the agreements under subsection(a), the Secretary, through the Agency forInternational Development, and in consulta-tion with the interagency working group,shall—

(1) establish eligibility criteria for coun-tries that will host projects;




(h) ELIGIBLE TECHNOLOGIES.—Not laterthan 6 months after the date of the enact-ment of this Act, the Secretary shall preparea list of eligible technologies and servicesunder this section. In preparing such a list,the Secretary shall consider fuel cell power-plants, aeroderivitive gas turbines and cata-lytic combustion technologies foraeroderivitive gas turbines, ocean thermalenergy conversion technology, anaerobic di-gester and storage tanks, and other renew-able energy and energy efficiency tech-nologies.

(i) SELECTION OF PROJECTS.—(1) Pursuantto the agreements under subsection (a), theSecretary, through the Agency for Inter-national Development, shall, not later than120 days after receipt of proposals in re-sponse to a solicitation under subsection (e),select one or more proposals under this sec-tion.




(C) the long-term technical and competi-tive viability of the United States tech-nology, and services related thereto, and theability of the United States firm to compete

in the development of additional energyprojects using such technology in the hostcountry and in other foreign countries;


(E) the extent to which the proposedproject meets the purposes of this section;

(F) the extent of technical, financial, man-agement, and marketing capabilities of theparticipants in the project, and the commit-ment of the participants to completion of asuccessful project in a manner that will fa-cilitate acceptance of the United Statestechnology or service for future application;and


(3) In selecting among proposed projects,the Secretary shall seek to ensure that, rel-ative to otherwise comparable projects inthe host country, a selected project willmeet the following criteria:

(A) It will reduce environmental emissions,including greenhouse gases, to an extentgreater than required by applicable provi-sions of law.

(B) It will be a more cost-effective techno-logical alternative, based on life cycle cap-ital and operating costs per unit of energyproduced and, where applicable, costs perunit of product produced.

(C) It will increase the overall efficiency ofenergy use.Priority in selection shall be given to thoseprojects which, in the judgment of the Sec-retary, best meet these criteria.

(j) UNITED STATES-ASIA ENVIRONMENTALPARTNERSHIP.—Activities carried out underthis section shall be coordinated with theUnited States-Asia Environmental Partner-ship.

(k) BUY AMERICA.—In carrying out this sec-tion, the Secretary, through the Agency forInternational Development, and pursuant tothe agreements under subsection (a), shallensure—


(2) the maximum participation of UnitedStates firms.

In determining whether the cost of UnitedStates components equals or exceeds 50 per-cent, the cost of assembly of such UnitedStates components in the host country shallnot be considered a part of the cost of suchUnited States component.

(l) REPORT TO CONGRESS.—The Secretaryand the Administrator of the Agency forInternational Development shall report an-nually to the Committee on Energy and Nat-ural Resources of the Senate and the appro-priate committees of the House of Represent-atives on the progress being made to intro-duce innovative energy technologies, andservices related thereto, that substantiallyreduce environmental pollutants, includinggreenhouse gases, into foreign countries.

(m) DEFINITIONS.—For purposes of this sec-tion—

(1) the term ‘‘host country’’ means a for-eign country which is—

(A) the participant in or the site of theproposed innovative energy technologyproject; and

(B) either—(i) classified as a country eligible to par-


(ii) a developing country; and(2) the term ‘‘developing country’’ in-

cludes, but is not limited to, countries in


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1992 T121.25Central and Eastern Europe or in the inde-pendent states of the former Soviet Union.

(n) AUTHORIZATION FOR PROGRAM.—Thereare authorized to be appropriated to the Sec-retary to carry out the program required bythis section, $100,000,000 for each of the fiscalyears 1993, 1994, 1995, 1996, 1997, and 1998.SEC. 1609. GLOBAL CLIMATE CHANGE RESPONSE

FUND.(a) ESTABLISHMENT OF THE FUND.—The Sec-

retary of the Treasury, in consultation withthe Secretary of State, shall establish aGlobal Climate Change Response Fund to actas a mechanism for United States contribu-tions to assist global efforts in mitigatingand adapting to global climate change.

(b) RESTRICTIONS ON DEPOSITS.—No depos-its shall be made to the Global ClimateChange Response Fund until the UnitedStates has ratified the United NationsFramework Convention on Climate Change.

(c) USE OF THE FUND.—Moneys depositedinto the Fund shall be used by the President,to the extent authorized and appropriatedunder section 302 of the Foreign AssistanceAct of 1961, solely for contributions to a fi-nancial mechanism negotiated pursuant tothe United Nations Framework Conventionon Climate Change, including all protocolsor agreements related thereto.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated fordeposit in the Fund to carry out the purposesof this section, $50,000,000 for fiscal year 1994and such sums as may be necessary for fiscalyears 1995 and 1996.

TITLE XVII—ADDITIONAL FEDERALPOWER ACT PROVISIONS

SEC. 1701. ADDITIONAL FEDERAL POWER ACTPROVISIONS.

(a) ANNUAL CHARGES FOR COSTS.—(1) Sec-tion 10(e)(1) of the Federal Power Act isamended by striking the semicolon after‘‘Part’’ and inserting the following:‘‘, including any reasonable and necessarycosts incurred by Federal and State fish andwildlife agencies and other natural and cul-tural resource agencies in connection withstudies or other reviews carried out by suchagencies for purposes of administering theirresponsibilities under this part;’’.

(2) Section 10(e)(1) of such Act is furtheramended by inserting after ‘‘as conditionsmay require:’’ the following proviso: ‘‘Pro-vided, That, subject to annual appropriationsActs, the portion of such annual charges im-posed by the Commission under this sub-section to cover the reasonable and nec-essary costs of such agencies shall be avail-able to such agencies (in addition to otherfunds appropriated for such purposes) solelyfor carrying out such studies and reviewsand shall remain available until expended:’’.

(b) CLARIFICATION OF AUTHORITY REGARD-ING FISHWAYS.—The definition of the term‘‘fishway’’ contained in 18 C.F.R.4.30(b)(9)(iii), as in effect on the date of en-actment of this Act, is vacated without prej-udice to any definition or interpretation byrule of the term ‘‘fishway’’ by the FederalEnergy Regulatory Commission for purposesof implementing section 18 of the FederalPower Act: Provided, That any future defini-tion promulgated by regulatory rulemakingshall have no force or effect unless concurredin by the Secretary of the Interior and theSecretary of Commerce: Provided further,That the items which may constitute a‘‘fishway’’ under section 18 for the safe andtimely upstream and downstream passage offish shall be limited to physical structures,facilities, or devices necessary to maintainall life stages of such fish, and project oper-ations and measures related to such struc-tures, facilities, or devices which are nec-essary to ensure the effectiveness of suchstructures, facilities, or devices for such fish.

(c) EXTENSION OF DEADLINES.—(1) Notwith-standing the time limitations of section 13 of

the Federal Power Act, the Federal EnergyRegulatory Commission, upon the request ofthe licensee for FERC Project No. 4031 (andafter reasonable notice), is authorized, in ac-cordance with the good faith, due diligence,and public interest requirements of such sec-tion 13 and the Commission’s proceduresunder such section, to extend the time re-quired for commencement of construction ofsuch project for up to a maximum of 3 con-secutive 2-year periods. This section shalltake effect for such project upon the expira-tion of the extension (issued by the Commis-sion under such section 13) of the period re-quired for commencement of construction ofsuch project.

(2) Notwithstanding the time limitationsof section 13 of the Federal Power Act, theFederal Energy Regulatory Commission,upon the request of the licensee for FERCProject No. 6221 (and after reasonable no-tice), is authorized, in accordance with thegood faith, due diligence, and public interestrequirements of such section 13 and the Com-mission’s procedures under such section, toextend the time required for commencementof construction of such project until July 29,1995.

(3) Notwithstanding the time limitationsof section 13 of the Federal Power Act, theFederal Energy Regulatory Commission,upon the request of the licensee for FERCproject numbered 6641 (and after reasonablenotice) is authorized, in accordance with thegood faith, due diligence, and public interestrequirements of section 13 and the Commis-sion’s procedures under such section, to ex-tend until June 29, 1996, the time required forthe licensee to acquire the required realproperty and commence the construction ofproject numbered 6641, and until June 29,2000, the time required for completion of con-struction of such project.

(4) Notwithstanding the time limitationsof section 13 of the Federal Power Act, theFederal Energy Regulatory Commission,upon the request of the licensee of FERCproject numbered 4656 (and after reasonablenotice) is authorized, in accordance with thegood faith, due diligence, and public interestrequirements of section 13 and the Commis-sion’s procedures under such section, to ex-tend until March 26, 1999, the time requiredfor the licensee to acquire the required realproperty and commence the construction ofproject numbered 4656.

(5) The authorization for issuing exten-sions under paragraphs (1) through (4) shallterminate 3 years after the date of enact-ment of this section. To facilitate requestsunder such subsections, the Commission mayconsolidate the requests. The Commissionshall provide at the beginning of each Con-gress a report on the status of all extensionsgranted by Congress regarding the require-ments of section 13 of the Federal Power Act,including information about any delays bythe Commission on the licensee and the rea-sons for such delays.

(d) EMINENT DOMAIN.—Section 21 of theFederal Power Act is amended by strikingthe period at the end thereof and adding thefollowing: ‘‘Provided, further, That no li-censee may use the right of eminent domainunder this section to acquire any lands orother property that, prior to the date of en-actment of the Energy Policy Act of 1992,were owned by a State or political subdivi-sion thereof and were part of or includedwithin any public park, recreation area orwildlife refuge established under State orlocal law. In the case of lands or other prop-erty that are owned by a State or politicalsubdivision and are part of or included with-in a public park, recreation area or wildliferefuge established under State or local lawon or after the date of enactment of suchAct, no licensee may use the right of emi-nent domain under this section to acquire

such lands or property unless there has beena public hearing held in the affected commu-nity and a finding by the Commission, afterdue consideration of expressed public viewsand the recommendations of the State or po-litical subdivision that owns the lands orproperty, that the license will not interfereor be inconsistent with the purposes forwhich such lands or property are owned.’’.TITLE XVIII—OIL PIPELINE REGULATORY

REFORMSEC. 1801. OIL PIPELINE RATEMAKING METH-

ODOLOGY.(a) ESTABLISHMENT.—Not later than 1 year

after the date of the enactment of this Act,the Federal Energy Regulatory Commissionshall issue a final rule which establishes asimplified and generally applicable rate-making methodology for oil pipelines in ac-cordance with section 1(5) of part I of theInterstate Commerce Act.

(b) EFFECTIVE DATE.—The final rule to beissued under subsection (a) may not take ef-fect before the 365th day following the dateof the issuance of the rule.SEC. 1802. STREAMLINING OF COMMISSION PRO-

CEDURES.(a) RULEMAKING.—Not later than 18 months

after the date of the enactment of this Act,the Commission shall issue a final rule tostreamline procedures of the Commission re-lating to oil pipeline rates in order to avoidunnecessary regulatory costs and delays.

(b) SCOPE OF RULEMAKING.—Issues to beconsidered in the rulemaking proceeding tobe conducted under subsection (a) shall in-clude the following:

(1) Identification of information to be filedwith an oil pipeline tariff and the availabil-ity to the public of any analysis of such tar-iff filing performed by the Commission or itsstaff.

(2) Qualification for standing (includingdefinitions of economic interest) of partieswho protest oil pipeline tariff filings or filecomplaints thereto.

(3) The level of specificity required for aprotest or complaint and guidelines for Com-mission action on the portion of the tariff orrate filing subject to protest or complaint.

(4) An opportunity for the oil pipeline tofile a response for the record to an initialprotest or complaint.

(5) Identification of specific circumstancesunder which Commission staff may initiate aprotest.

(c) ADDITIONAL PROCEDURAL CHANGES.—Inconducting the rulemaking proceeding tocarry out subsection (a), the Commissionshall identify and transmit to Congress anyother procedural changes relating to oilpipeline rates which the Commission deter-mines are necessary to avoid unnecessaryregulatory costs and delays and for whichadditional legislative authority may be nec-essary.

(d) WITHDRAWAL OF TARIFFS AND COM-PLAINTS.—

(1) WITHDRAWAL OF TARIFFS.—If an oil pipe-line tariff which is filed under part I of theInterstate Commerce Act and which is sub-ject to investigation is withdrawn—

(A) any proceeding with respect to suchtariff shall be terminated;

(B) the previous tariff rate shall be rein-stated; and

(C) any amounts collected under the with-drawn tariff rate which are in excess of theprevious tariff rate shall be refunded.

(2) WITHDRAWAL OF COMPLAINTS.—If a com-plaint which is filed under section 13 of theInterstate Commerce Act with respect to anoil pipeline tariff is withdrawn, any proceed-ing with respect to such complaint shall beterminated.

(e) ALTERNATIVE DISPUTE RESOLUTION.—Tothe maximum extent practicable, the Com-mission shall establish appropriate alter-

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OCTOBER 5T121.25native dispute resolution procedures, includ-ing required negotiations and voluntary ar-bitration, early in an oil pipeline rate pro-ceeding as a method preferable to adjudica-tion in resolving disputes relating to therate. Any proposed rates derived from imple-mentation of such procedures shall be con-sidered by the Commission on an expeditedbasis for approval.SEC. 1803. PROTECTION OF CERTAIN EXISTING

RATES.(a) RATES DEEMED JUST AND REASONABLE.—

Except as provided in subsection (b)—(1) any rate in effect for the 365-day period

ending on the date of the enactment of thisAct shall be deemed to be just and reason-able (within the meaning of section 1(5) ofthe Interstate Commerce Act); and

(2) any rate in effect on the 365th day pre-ceding the date of such enactment shall bedeemed to be just and reasonable (within themeaning of such section 1(5)) regardless ofwhether or not, with respect to such rate, anew rate has been filed with the Commissionduring such 365-day period;if the rate in effect, as described in para-graph (1) or (2), has not been subject to pro-test, investigation, or complaint during such365-day period.

(b) CHANGED CIRCUMSTANCES.—No personmay file a complaint under section 13 of theInterstate Commerce Act against a ratedeemed to be just and reasonable under sub-section (a) unless—

(1) evidence is presented to the Commis-sion which establishes that a substantialchange has occurred after the date of the en-actment of this Act—

(A) in the economic circumstances of theoil pipeline which were a basis for the rate;or

(B) in the nature of the services providedwhich were a basis for the rate; or

(2) the person filing the complaint wasunder a contractual prohibition against thefiling of a complaint which was in effect onthe date of enactment of this Act and hadbeen in effect prior to January 1, 1991, pro-vided that a complaint by a party bound bysuch prohibition is brought within 30 daysafter the expiration of such prohibition.If the Commission determines pursuant to aproceeding instituted as a result of a com-plaint under section 13 of the InterstateCommerce Act that the rate is not just andreasonable, the rate shall not be deemed tobe just and reasonable. Any tariff reductionor refunds that may result as an outcome ofsuch a complaint shall be prospective fromthe date of the filing of the complaint.

(c) LIMITATION REGARDING UNDULY DIS-CRIMINATORY OR PREFERENTIAL TARIFFS.—Nothing in this section shall prohibit any ag-grieved person from filing a complaint undersection 13 or section 15(l) of the InterstateCommerce Act challenging any tariff provi-sion as unduly discriminatory or undulypreferential.SEC. 1804. DEFINITIONS.

For the purposes of this title, the followingdefinitions apply:

(1) COMMISSION.—The term ‘‘Commission’’means the Federal Energy Regulatory Com-mission and, unless the context requires oth-erwise, includes the Oil Pipeline Board andany other office or component of the Com-mission to which the functions and author-ity vested in the Commission under section402(b) of the Department of Energy Organiza-tion Act (42 U.S.C. 7172(b)) are delegated.

(2) OIL PIPELINE.—(A) IN GENERAL.—Except as provided in

subparagraph (B), the term ‘‘oil pipeline’’means any common carrier (within themeaning of the Interstate Commerce Act)which transports oil by pipeline subject tothe functions and authority vested in theCommission under section 402(b) of the De-

partment of Energy Organization Act (42U.S.C. 7172(b)).

(B) EXCEPTION.—The term ‘‘oil pipeline’’does not include the Trans-Alaska Pipelineauthorized by the Trans-Alaska Pipeline Au-thorization Act (43 U.S.C. 1651 et seq.) or anypipeline delivering oil directly or indirectlyto the Trans-Alaska Pipeline.

(3) OIL.—The term ‘‘oil’’ has the samemeaning as is given such term for purposesof the transfer of functions from the Inter-state Commerce Commission to the FederalEnergy Regulatory Commission under sec-tion 402(b) of the Department of Energy Or-ganization Act (42 U.S.C. 7172(b)).

(4) RATE.—The term ‘‘rate’’ means allcharges that an oil pipeline requires shippersto pay for transportation services.

TITLE XIX—REVENUE PROVISIONSSEC. 1901. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided,whenever in this title an amendment or re-peal is expressed in terms of an amendmentto, or repeal of, a section or other provision,the reference shall be considered to be madeto a section or other provision of the Inter-nal Revenue Code of 1986.

Subtitle A—Energy Conservation andProduction Incentives

SEC. 1911. TREATMENT OF EMPLOYER-PROVIDEDTRANSPORTATION BENEFITS.

(a) EXCLUSION.—Subsection (a) of section132 (relating to exclusion of certain fringebenefits) is amended by striking ‘‘or’’ at theend of paragraph (3), by striking the periodat the end of paragraph (4) and inserting ‘‘,or’’, and by adding at the end thereof the fol-lowing new paragraph:

‘‘(5) qualified transportation fringe.’’(b) QUALIFIED TRANSPORTATION FRINGE.—

Section 132 is amended by redesignating sub-sections (f), (g), (h), (i), (j), and (k) as sub-sections (g), (h), (i), (j), (k), and (l), respec-tively, and by inserting after subsection (e)the following new subsection:

‘‘(f) QUALIFIED TRANSPORTATION FRINGE.—‘‘(1) IN GENERAL.—For purposes of this sec-

tion, the term ‘qualified transportationfringe’ means any of the following providedby an employer to an employee:

‘‘(A) Transportation in a commuter high-way vehicle if such transportation is in con-nection with travel between the employee’sresidence and place of employment.

‘‘(B) Any transit pass.‘‘(C) Qualified parking.‘‘(2) LIMITATION ON EXCLUSION.—The

amount of the fringe benefits which are pro-vided by an employer to any employee andwhich may be excluded from gross incomeunder subsection (a)(5) shall not exceed—

‘‘(A) $60 per month in the case of the aggre-gate of the benefits described in subpara-graphs (A) and (B) of paragraph (1), and

‘‘(B) $155 per month in the case of qualifiedparking.

‘‘(3) CASH REIMBURSEMENTS.—For purposesof this subsection, the term ‘qualified trans-portation fringe’ includes a cash reimburse-ment by an employer to an employee for abenefit described in paragraph (1). The pre-ceding sentence shall apply to a cash reim-bursement for any transit pass only if avoucher or similar item which may be ex-changed only for a transit pass is not readilyavailable for direct distribution by the em-ployer to the employee.

‘‘(4) BENEFIT NOT IN LIEU OF COMPENSA-TION.—Subsection (a)(5) shall not apply toany qualified transportation fringe unlesssuch benefit is provided in addition to (andnot in lieu of) any compensation otherwisepayable to the employee.

‘‘(5) DEFINITIONS.—For purposes of this sub-section—

‘‘(A) TRANSIT PASS.—The term ‘transitpass’ means any pass, token, farecard,

voucher, or similar item entitling a personto transportation (or transportation at a re-duced price) if such transportation is—

‘‘(i) on mass transit facilities (whether ornot publicly owned), or

‘‘(ii) provided by any person in the businessof transporting persons for compensation orhire if such transportation is provided in avehicle meeting the requirements of sub-paragraph (B)(i).

‘‘(B) COMMUTER HIGHWAY VEHICLE.—Theterm ‘commuter highway vehicle’ means anyhighway vehicle—

‘‘(i) the seating capacity of which is atleast 6 adults (not including the driver), and

‘‘(ii) at least 80 percent of the mileage useof which can reasonably be expected to be—

‘‘(I) for purposes of transporting employeesin connection with travel between their resi-dences and their place of employment, and

‘‘(II) on trips during which the number ofemployees transported for such purposes isat least 1⁄2 of the adult seating capacity ofsuch vehicle (not including the driver).

‘‘(C) QUALIFIED PARKING.—The term ‘quali-fied parking’ means parking provided to anemployee on or near the business premises ofthe employer or on or near a location fromwhich the employee commutes to work bytransportation described in subparagraph(A), in a commuter highway vehicle, or bycarpool. Such term shall not include anyparking on or near property used by the em-ployee for residential purposes.

‘‘(D) TRANSPORTATION PROVIDED BY EM-PLOYER.—Transportation referred to in para-graph (1)(A) shall be considered to be pro-vided by an employer if such transportationis furnished in a commuter highway vehicleoperated by or for the employer.

‘‘(E) EMPLOYEE.—For purposes of this sub-section, the term ‘employee’ does not includean individual who is an employee within themeaning of section 401(c)(1).

‘‘(6) INFLATION ADJUSTMENT.—In the case ofany taxable year beginning in a calendaryear after 1993, the dollar amounts containedin paragraph (2)(A) and (B) shall be increasedby an amount equal to—

‘‘(A) such dollar amount, multiplied by‘‘(B) the cost-of-living adjustment deter-

mined under section 1(f)(3) for the calendaryear in which the taxable year begins, deter-mined by substituting ‘calendar year 1992’for ‘calendar year 1989’ in subparagraph (B)thereof.

If any increase determined under the preced-ing sentence is not a multiple of $5, such in-crease shall be rounded to the next lowestmultiple of $5.

‘‘(7) COORDINATION WITH OTHER PROVI-SIONS.—For purposes of this section, theterms ‘working condition fringe’ and ‘deminimis fringe’ shall not include any quali-fied transportation fringe (determined with-out regard to paragraph (2)).’’

(c) CONFORMING AMENDMENT.—Subsection(i) of section 132 (as redesignated by sub-section (b)) is amended by striking para-graph (4) and redesignating the followingparagraphs accordingly.

(d) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to benefitsprovided after December 31, 1992.SEC. 1912. EXCLUSION OF ENERGY CONSERVA-

TION SUBSIDIES PROVIDED BY PUB-LIC UTILITIES.

(a) GENERAL RULE.—Part III of subchapterB of chapter 1 (relating to amounts specifi-cally excluded from gross income) is amend-ed by redesignating section 136 as section 137and by inserting after section 135 the follow-ing new section:‘‘SEC. 136. ENERGY CONSERVATION SUBSIDIES

PROVIDED BY PUBLIC UTILITIES.‘‘(a) EXCLUSION.—‘‘(1) IN GENERAL.—Gross income shall not

include the value of any subsidy provided (di-


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1992 T121.25rectly or indirectly) by a public utility to acustomer for the purchase or installation ofany energy conservation measure.

‘‘(2) LIMITATION ON EXCLUSION FOR NONRESI-DENTIAL PROPERTY.—

‘‘(A) IN GENERAL.—In the case of any sub-sidy provided with respect to any energyconservation measure referred to in sub-section (c)(1)(B), only the applicable percent-age of such subsidy shall be excluded fromgross income under paragraph (1).

‘‘(B) APPLICABLE PERCENTAGE.—For pur-poses of subparagraph (A), the term ‘applica-ble percentage’ means—

‘‘(i) 40 percent in the case of subsidies pro-vided during 1995,

‘‘(ii) 50 percent in the case of subsidies pro-vided during 1996, and

‘‘(iii) 65 percent in the case of subsidiesprovided after 1996.

‘‘(b) DENIAL OF DOUBLE BENEFIT.—Notwith-standing any other provision of this subtitle,no deduction or credit shall be allowed for,or by reason of, any expenditure to the ex-tent of the amount excluded under sub-section (a) for any subsidy which was pro-vided with respect to such expenditure. Theadjusted basis of any property shall be re-duced by the amount excluded under sub-section (a) which was provided with respectto such property.

‘‘(c) ENERGY CONSERVATION MEASURE.—‘‘(1) IN GENERAL.—For purposes of this sec-

tion, the term ‘energy conservation measure’means any installation or modification pri-marily designed to reduce consumption ofelectricity or natural gas or to improve themanagement of energy demand—

‘‘(A) with respect to a dwelling unit, and‘‘(B) on or after January 1, 1995, with re-

spect to property other than dwelling units.The purchase and installation of speciallydefined energy property shall be treated asan energy conservation measure described insubparagraph (B).

‘‘(2) OTHER DEFINITIONS AND SPECIALRULES.—For purposes of this subsection—

‘‘(A) SPECIALLY DEFINED ENERGY PROP-ERTY.—The term ‘specially defined energyproperty’ means—

‘‘(i) a recuperator,‘‘(ii) a heat wheel,‘‘(iii) a regenerator,‘‘(iv) a heat exchanger,‘‘(v) a waste heat boiler,‘‘(vi) a heat pipe,‘‘(vii) an automatic energy control system,‘‘(viii) a turbulator,‘‘(ix) a preheater,‘‘(x) a combustible gas recovery system,‘‘(xi) an economizer,‘‘(xii) modifications to alumina electro-

lytic cells,‘‘(xiii) modifications to chlor-alkali elec-

trolytic cells, or‘‘(xiv) any other property of a kind speci-

fied by the Secretary by regulations,the principal purpose of which is reducingthe amount of energy consumed in any exist-ing industrial or commercial process andwhich is installed in connection with an ex-isting industrial or commercial facility.

‘‘(B) DWELLING UNIT.—The term ‘dwellingunit’ has the meaning given such term bysection 280A(f)(1).

‘‘(C) PUBLIC UTILITY.—The term ‘publicutility’ means a person engaged in the saleof electricity or natural gas to residential,commercial, or industrial customers for useby such customers. For purposes of the pre-ceding sentence, the term ‘person’ includesthe Federal Government, a State or localgovernment or any political subdivisionthereof, or any instrumentality of any of theforegoing.

‘‘(d) EXCEPTION.—This section shall notapply to any payment to or from a qualifiedcogeneration facility or qualifying smallpower production facility pursuant to sec-

tion 210 of the Public Utility Regulatory Pol-icy Act of 1978.’’

(b) CLERICAL AMENDMENT.—The table ofsections for part III of subchapter B of chap-ter 1 is amended by striking the item relat-ing to section 136 and inserting:

‘‘Sec. 136. Energy conservation subsidies pro-vided by public utilities.

‘‘Sec. 137. Cross reference to other Acts.’’

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to amountsreceived after December 31, 1992.SEC. 1913. TREATMENT OF CLEAN-FUEL VEHI-

CLES.(a) DEDUCTION FOR CLEAN-FUEL VEHICLES

AND CERTAIN REFUELING PROPERTY.—(1) IN GENERAL.—Part VI of subchapter B of

chapter 1 (relating to itemized deductionsfor individuals and corporations) is amendedby adding after section 179 the following newsection:‘‘SEC. 179A. DEDUCTION FOR CLEAN-FUEL VEHI-

CLES AND CERTAIN REFUELINGPROPERTY.

‘‘(a) ALLOWANCE OF DEDUCTION.—‘‘(1) IN GENERAL.—There shall be allowed as

a deduction an amount equal to the cost of—‘‘(A) any qualified clean-fuel vehicle prop-

erty, and‘‘(B) any qualified clean-fuel vehicle refuel-

ing property.The deduction under the preceding sentencewith respect to any property shall be allowedfor the taxable year in which such propertyis placed in service.

‘‘(2) INCREMENTAL COST FOR CERTAIN VEHI-CLES.—If a vehicle may be propelled by botha clean-burning fuel and any other fuel, onlythe incremental cost of permitting the use ofthe clean-burning fuel shall be taken into ac-count.

‘‘(b) LIMITATIONS.—‘‘(1) QUALIFIED CLEAN-FUEL VEHICLE PROP-

ERTY.—‘‘(A) IN GENERAL.—The cost which may be

taken into account under subsection (a)(1)(A)with respect to any motor vehicle shall notexceed—

‘‘(i) in the case of a motor vehicle not de-scribed in clause (ii) or (iii), $2,000,

‘‘(ii) in the case of any truck or van witha gross vehicle weight rating greater than10,000 pounds but not greater than 26,000pounds, $5,000, or

‘‘(iii) $50,000 in the case of—‘‘(I) a truck or van with a gross vehicle

weight rating greater than 26,000 pounds, or‘‘(II) any bus which has a seating capacity

of at least 20 adults (not including the driv-er).

‘‘(B) PHASEOUT.—In the case of any quali-fied clean-fuel vehicle property placed inservice after December 31, 2001, the limitotherwise applicable under subparagraph (A)shall be reduced by—

‘‘(i) 25 percent in the case of propertyplaced in service in calendar year 2002,

‘‘(ii) 50 percent in the case of propertyplaced in service in calendar year 2003, and

‘‘(iii) 75 percent in the case of propertyplaced in service in calendar year 2004.

‘‘(2) QUALIFIED CLEAN-FUEL VEHICLE RE-FUELING PROPERTY.—

‘‘(A) IN GENERAL.—The aggregate costwhich may be taken into account under sub-section (a)(1)(B) with respect to qualifiedclean-fuel vehicle refueling property placedin service during the taxable year at a loca-tion shall not exceed the excess (if any) of—

‘‘(i) $100,000, over‘‘(ii) the aggregate amount taken into ac-

count under subsection (a)(1)(B) by the tax-payer (or any related person or predecessor)with respect to property placed in service atsuch location for all preceding taxable years.

‘‘(B) RELATED PERSON.—For purposes ofthis paragraph, a person shall be treated as

related to another person if such personbears a relationship to such other person de-scribed in section 267(b) or 707(b)(1).

‘‘(C) ELECTION.—If the limitation undersubparagraph (A) applies for any taxableyear, the taxpayer shall, on the return of taxfor such taxable year, specify the items ofproperty (and the portion of costs of suchproperty) which are to be taken into accountunder subsection (a)(1)(B).

‘‘(c) QUALIFIED CLEAN-FUEL VEHICLE PROP-ERTY DEFINED.—For purposes of this sec-tion—

‘‘(1) IN GENERAL.—The term ‘qualifiedclean-fuel vehicle property’ means propertywhich is acquired for use by the taxpayerand not for resale, the original use of whichcommences with the taxpayer, with respectto which the environmental standards ofparagraph (2) are met, and which is describedin either of the following subparagraphs:

‘‘(A) RETROFIT PARTS AND COMPONENTS.—Any property installed on a motor vehiclewhich is propelled by a fuel which is not aclean-burning fuel for purposes of permittingsuch vehicle to be propelled by a clean-burn-ing fuel—

‘‘(i) if the property is an engine (or modi-fication thereof) which may use a clean-burning fuel, or

‘‘(ii) to the extent the property is used inthe storage or delivery to the engine of suchfuel, or the exhaust of gases from combus-tion of such fuel.

‘‘(B) ORIGINAL EQUIPMENT MANUFACTURER’SVEHICLES.—A motor vehicle produced by anoriginal equipment manufacturer and de-signed so that the vehicle may be propelledby a clean-burning fuel, but only to the ex-tent of the portion of the basis of such vehi-cle which is attributable to an engine whichmay use such fuel, to the storage or deliveryto the engine of such fuel, or to the exhaustof gases from combustion of such fuel.

‘‘(2) ENVIRONMENTAL STANDARDS.—Propertyshall not be treated as qualified clean-fuelvehicle property unless—

‘‘(A) the motor vehicle of which it is a partmeets any applicable Federal or State emis-sions standards with respect to each fuel bywhich such vehicle is designed to be pro-pelled, or

‘‘(B) in the case of property described inparagraph (1)(A), such property meets appli-cable Federal and State emissions-relatedcertification, testing, and warranty require-ments.

‘‘(3) EXCEPTION FOR QUALIFIED ELECTRIC VE-HICLES.—The term ‘qualified clean-fuel vehi-cle property’ does not include any qualifiedelectric vehicle (as defined in section 30(c)).

‘‘(d) QUALIFIED CLEAN-FUEL VEHICLE RE-FUELING PROPERTY DEFINED.—For purposesof this section, the term ‘qualified clean-fuelvehicle refueling property’ means any prop-erty (not including a building and its struc-tural components) if—

‘‘(1) such property is of a character subjectto the allowance for depreciation,

‘‘(2) the original use of such property be-gins with the taxpayer, and

‘‘(3) such property is—‘‘(A) for the storage or dispensing of a

clean-burning fuel into the fuel tank of amotor vehicle propelled by such fuel, butonly if the storage or dispensing of the fuelis at the point where such fuel is deliveredinto the fuel tank of the motor vehicle, or

‘‘(B) for the recharging of motor vehiclespropelled by electricity, but only if the prop-erty is located at the point where the motorvehicles are recharged.

‘‘(e) OTHER DEFINITIONS AND SPECIALRULES.—For purposes of this section—

‘‘(1) CLEAN-BURNING FUEL.—The term‘clean-burning fuel’ means—

‘‘(A) natural gas,‘‘(B) liquefied natural gas,‘‘(C) liquefied petroleum gas,

JOURNAL OF THE

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OCTOBER 5T121.25‘‘(D) hydrogen,‘‘(E) electricity, and‘‘(F) any other fuel at least 85 percent of

which is 1 or more of the following: meth-anol, ethanol, any other alcohol, or ether.

‘‘(2) MOTOR VEHICLE.—The term ‘motor ve-hicle’ means any vehicle which is manufac-tured primarily for use on public streets,roads, and highways (not including a vehicleoperated exclusively on a rail or rails) andwhich has at least 4 wheels.

‘‘(3) COST OF RETROFIT PARTS INCLUDES COSTOF INSTALLATION.—The cost of any qualifiedclean-fuel vehicle property referred to insubsection (c)(1)(A) shall include the cost ofthe original installation of such property.

‘‘(4) RECAPTURE.—The Secretary shall, byregulations, provide for recapturing the ben-efit of any deduction allowable under sub-section (a) with respect to any propertywhich ceases to be property eligible for suchdeduction.

‘‘(5) PROPERTY USED OUTSIDE UNITEDSTATES, ETC., NOT QUALIFIED.—No deductionshall be allowed under subsection (a) with re-spect to any property referred to in section50(b) or with respect to the portion of thecost of any property taken into accountunder section 179.

‘‘(6) BASIS REDUCTION.—‘‘(A) IN GENERAL.—For purposes of this

title, the basis of any property shall be re-duced by the portion of the cost of such prop-erty taken into account under subsection (a).

‘‘(B) ORDINARY INCOME RECAPTURE.—Forpurposes of section 1245, the amount of thededuction allowable under subsection (a)with respect to any property which is of acharacter subject to the allowance for depre-ciation shall be treated as a deduction al-lowed for depreciation under section 167.

‘‘(g) TERMINATION.—This section shall notapply to any property placed in service afterDecember 31, 2004.’’

(2) DEDUCTION FROM GROSS INCOME.—Sec-tion 62(a) is amended by inserting after para-graph (13) the following new paragraph:

‘‘(14) DEDUCTION FOR CLEAN-FUEL VEHICLESAND CERTAIN REFUELING PROPERTY.—The de-duction allowed by section 179A.’’

(3) CONFORMING AMENDMENTS.—(A) Section 1016(a) is amended by striking

‘‘and’’ at the end of paragraph (23), by strik-ing the period at the end of paragraph (24)and inserting ‘‘, and’’, and by adding at theend thereof the following new paragraph:

‘‘(25) to the extent provided in section179A(e)(6)(A).’’

(B) The table of sections for part VI of sub-chapter B of chapter 1 is amended by insert-ing after the item relating to section 179 thefollowing new item:

‘‘Sec. 179A. Deduction for clean-fuel vehiclesand certain refueling prop-erty.’’

(b) CREDIT FOR QUALIFIED ELECTRIC VEHI-CLES.—

(1) IN GENERAL.—Subpart B of part IV ofsubchapter A of chapter 1 is amended by in-serting after section 29 the following newsection:‘‘SEC. 30. CREDIT FOR QUALIFIED ELECTRIC VE-

HICLES.‘‘(a) ALLOWANCE OF CREDIT.—There shall be

allowed as a credit against the tax imposedby this chapter for the taxable year anamount equal to 10 percent of the cost of anyqualified electric vehicle placed in service bythe taxpayer during the taxable year.

‘‘(b) LIMITATIONS.—‘‘(1) LIMITATION PER VEHICLE.—The amount

of the credit allowed under subsection (a) forany vehicle shall not exceed $4,000.

‘‘(2) PHASEOUT.—In the case of any quali-fied electric vehicle placed in service afterDecember 31, 2001, the credit otherwise al-lowable under subsection (a) (determined

after the application of paragraph (1)) shallbe reduced by—

‘‘(A) 25 percent in the case of propertyplaced in service in calendar year 2002,

‘‘(B) 50 percent in the case of propertyplaced in service in calendar year 2003, and

‘‘(C) 75 percent in the case of propertyplaced in service in calendar year 2004.

‘‘(3) APPLICATION WITH OTHER CREDITS.—Thecredit allowed by subsection (a) for any tax-able year shall not exceed the excess (if any)of—

‘‘(A) the regular tax for the taxable yearreduced by the sum of the credits allowableunder subpart A and sections 27, 28, and 29,over—

‘‘(B) the tentative minimum tax for thetaxable year.

‘‘(c) QUALIFIED ELECTRIC VEHICLE.—Forpurposes of this section—

‘‘(1) IN GENERAL.—The term ‘qualified elec-tric vehicle’ means any motor vehicle—

‘‘(A) which is powered primarily by anelectric motor drawing current from re-chargeable batteries, fuel cells, or otherportable sources of electrical current,

‘‘(B) the original use of which commenceswith the taxpayer, and

‘‘(C) which is acquired for use by the tax-payer and not for resale.

‘‘(2) MOTOR VEHICLE.—For purposes of para-graph (1), the term ‘motor vehicle’ meansany vehicle which is manufactured primarilyfor use on public streets, roads, and high-ways (not including a vehicle operated exclu-sively on a rail or rails) and which has atleast 4 wheels.

‘‘(d) SPECIAL RULES.—‘‘(1) BASIS REDUCTION.—The basis of any

property for which a credit is allowableunder subsection (a) shall be reduced by theamount of such credit.

‘‘(2) RECAPTURE.—The Secretary shall, byregulations, provide for recapturing the ben-efit of any credit allowable under subsection(a) with respect to any property which ceasesto be property eligible for such credit.

‘‘(3) PROPERTY USED OUTSIDE UNITEDSTATES, ETC., NOT QUALIFIED.—No credit shallbe allowed under subsection (a) with respectto any property referred to in section 50(b) orwith respect to the portion of the cost of anyproperty taken into account under section179.

‘‘(e) TERMINATION.—This section shall notapply to any property placed in service afterDecember 31, 2004.’’

(2) CONFORMING AMENDMENTS.—(A) The table of sections for subpart B of

part IV of subchapter A of chapter 1 isamended by adding after the item relating tosection 29 the following new item:

‘‘Sec. 30. Credit for qualified electric vehi-cles.’’

(B) Section 1016(a), as amended by sub-section (a)(3), is amended by striking ‘‘and’’at the end of paragraph (24), by striking theperiod at the end of paragraph (25) and in-serting ‘‘, and’’, and by adding at the endthereof the following new paragraph:

‘‘(26) to the extent provided in section30(d)(1).’’

(C) Section 53(d)(1)(B)(iii) is amended—(i) by striking ‘‘section 29(b)(5)(B) or’’ and

inserting ‘‘section 29(b)(6)(B),’’, and(ii) by inserting ‘‘, or not allowed under

section 30 solely by reason of the applicationof section 30(b)(3)(B)’’ before the period.

(D) Section 55(c)(2) is amended by striking‘‘29(b)(5),’’ and inserting ‘‘29(b)(6), 30(b)(3),’’.

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to propertyplaced in service after June 30, 1993.SEC. 1914. CREDIT FOR ELECTRICITY PRODUCED

FROM CERTAIN RENEWABLESOURCES.

(a) IN GENERAL.—Subpart D of part IV ofsubchapter A of chapter 1 is amended by add-

ing at the end thereof the following new sec-tion:‘‘SEC. 45. ELECTRICITY PRODUCED FROM CER-

TAIN RENEWABLE RESOURCES.‘‘(a) GENERAL RULE.—For purposes of sec-

tion 38, the renewable electricity productioncredit for any taxable year is an amountequal to the product of—

‘‘(1) 1.5 cents, multiplied by‘‘(2) the kilowatt hours of electricity—‘‘(A) produced by the taxpayer—‘‘(i) from qualified energy resources, and‘‘(ii) at a qualified facility during the 10-

year period beginning on the date the facil-ity was originally placed in service, and

‘‘(B) sold by the taxpayer to an unrelatedperson during the taxable year.

‘‘(b) LIMITATIONS AND ADJUSTMENTS.—‘‘(1) PHASEOUT OF CREDIT.—The amount of

the credit determined under subsection (a)shall be reduced by an amount which bearsthe same ratio to the amount of the credit(determined without regard to this para-graph) as—

‘‘(A) the amount by which the referenceprice for the calendar year in which the saleoccurs exceeds 8 cents, bears to

‘‘(B) 3 cents.‘‘(2) CREDIT AND PHASEOUT ADJUSTMENT

BASED ON INFLATION.—The 1.5 cent amount insubsection (a) and the 8 cent amount in para-graph (1) shall each be adjusted by multiply-ing such amount by the inflation adjustmentfactor for the calendar year in which the saleoccurs. If any amount as increased under thepreceding sentence is not a multiple of 0.1cent, such amount shall be rounded to thenearest multiple of 0.1 cent.

‘‘(3) CREDIT REDUCED FOR GRANTS, TAX-EX-EMPT BONDS, SUBSIDIZED ENERGY FINANCING,AND OTHER CREDITS.—The amount of thecredit determined under subsection (a) withrespect to any project for any taxable year(determined after the application of para-graphs (1) and (2)) shall be reduced by theamount which is the product of the amountso determined for such year and a fraction—

‘‘(A) the numerator of which is the sum,for the taxable year and all prior taxableyears, of—

‘‘(i) grants provided by the United States,a State, or a political subdivision of a Statefor use in connection with the project,

‘‘(ii) proceeds of an issue of State or localgovernment obligations used to provide fi-nancing for the project the interest on whichis exempt from tax under section 103,

‘‘(iii) the aggregate amount of subsidizedenergy financing provided (directly or indi-rectly) under a Federal, State, or local pro-gram provided in connection with theproject, and

‘‘(iv) the amount of any other credit allow-able with respect to any property which ispart of the project, and

‘‘(B) the denominator of which is the ag-gregate amount of additions to the capitalaccount for the project for the taxable yearand all prior taxable years.

The amounts under the preceding sentencefor any taxable year shall be determined asof the close of the taxable year.

‘‘(c) DEFINITIONS.—For purposes of this sec-tion—

‘‘(1) QUALIFIED ENERGY RESOURCES.—Theterm ‘qualified energy resources’ means—

‘‘(A) wind, and‘‘(B) closed-loop biomass.‘‘(2) CLOSED-LOOP BIOMASS.—The term

‘closed-loop biomass’ means any organic ma-terial from a plant which is planted exclu-sively for purposes of being used at a quali-fied facility to produce electricity.

‘‘(3) QUALIFIED FACILITY.—The term ‘quali-fied facility’ means any facility owned bythe taxpayer which is originally placed inservice after December 31, 1993 (December 31,1992, in the case of a facility using closed-


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1992 T121.25loop biomass to produce electricity), and be-fore July 1, 1999.

‘‘(d) DEFINITIONS AND SPECIAL RULES.—Forpurposes of this section—

‘‘(1) ONLY PRODUCTION IN THE UNITEDSTATES TAKEN INTO ACCOUNT.—Sales shall betaken into account under this section onlywith respect to electricity the production ofwhich is within—

‘‘(A) the United States (within the mean-ing of section 638(1)), or

‘‘(B) a possession of the United States(within the meaning of section 638(2)).

‘‘(2) COMPUTATION OF INFLATION ADJUST-MENT FACTOR AND REFERENCE PRICE.—

‘‘(A) IN GENERAL.—The Secretary shall, notlater than April 1 of each calendar year, de-termine and publish in the Federal Registerthe inflation adjustment factor and the ref-erence price for such calendar year in ac-cordance with this paragraph.

‘‘(B) INFLATION ADJUSTMENT FACTOR.—Theterm ‘inflation adjustment factor’ means,with respect to a calendar year, a fractionthe numerator of which is the GDP implicitprice deflator for the preceding calendaryear and the denominator of which is theGDP implicit price deflator for the calendaryear 1992. The term ‘GDP implicit pricedeflator’ means the most recent revision ofthe implicit price deflator for the gross do-mestic product as computed and publishedby the Department of Commerce beforeMarch 15 of the calendar year.

‘‘(C) REFERENCE PRICE.—The term ‘ref-erence price’ means, with respect to a cal-endar year, the Secretary’s determination ofthe annual average contract price per kilo-watt hour of electricity generated from thesame qualified energy resource and sold inthe previous year in the United States. Forpurposes of the preceding sentence, only con-tracts entered into after December 31, 1989,shall be taken into account.

‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAX-PAYER.—In the case of a facility in whichmore than 1 person has an ownership inter-est, except to the extent provided in regula-tions prescribed by the Secretary, produc-tion from the facility shall be allocatedamong such persons in proportion to theirrespective ownership interests in the grosssales from such facility.

‘‘(4) RELATED PERSONS.—Persons shall betreated as related to each other if such per-sons would be treated as a single employerunder the regulations prescribed under sec-tion 52(b). In the case of a corporation whichis a member of an affiliated group of cor-porations filing a consolidated return, suchcorporation shall be treated as selling elec-tricity to an unrelated person if such elec-tricity is sold to such a person by anothermember of such group.

‘‘(5) PASS-THRU IN THE CASE OF ESTATES ANDTRUSTS.—Under regulations prescribed bythe Secretary, rules similar to the rules ofsubsection (d) of section 52 shall apply.’’

(b) CREDIT TO BE PART OF GENERAL BUSI-NESS CREDIT.—Subsection (b) of section 38 isamended by striking ‘‘plus’’ at the end ofparagraph (6), by striking the period at theend of paragraph (7) and inserting ‘‘, plus’’,and by adding at the end thereof the follow-ing new paragraph:

‘‘(8) the renewable electricity productioncredit under section 45(a).’’

(c) LIMITATION ON CARRYBACK.—Subsection(d) of section 39 is amended by redesignatingthe paragraph added by section 11511(b)(2) ofthe Revenue Reconciliation Act of 1990 asparagraph (1), by redesignating the para-graph added by section 11611(b)(2) of such Actas paragraph (2), and by adding at the endthereof the following new paragraph:

‘‘(3) NO CARRYBACK OF RENEWABLE ELEC-TRICITY PRODUCTION CREDIT BEFORE EFFECTIVEDATE.—No portion of the unused businesscredit for any taxable year which is attrib-

utable to the credit determined under sec-tion 45 (relating to electricity produced fromcertain renewable resources) may be carriedback to any taxable year ending before Janu-ary 1, 1993 (before January 1, 1994, to the ex-tent such credit is attributable to wind as aqualified energy resource).’’

(d) CLERICAL AMENDMENT.—The table ofsections for subpart D of part IV of sub-chapter A of chapter 1 is amended by addingat the end thereof the following new item:

‘‘Sec. 45. Electricity produced from certainrenewable resources.’’

(e) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxableyears ending after December 31, 1992.SEC. 1915. REPEAL OF MINIMUM TAX PREF-

ERENCES FOR DEPLETION AND IN-TANGIBLE DRILLING COSTS OFINDEPENDENT OIL AND GAS PRO-DUCERS AND ROYALTY OWNERS.

(a) DEPLETION.—(1) Paragraph (1) of section 57(a) (relating

to depletion) is amended by adding at theend thereof the following new sentence: ‘‘Ef-fective with respect to taxable years begin-ning after December 31, 1992, this paragraphshall not apply to any deduction for deple-tion computed in accordance with section613A(c).’’.

(2) Subparagraph (F) of section 56(g)(4) isamended to read as follows:

‘‘(F) DEPLETION.—‘‘(i) IN GENERAL.—The allowance for deple-

tion with respect to any property placed inservice in a taxable year beginning after De-cember 31, 1989, shall be cost depletion deter-mined under section 611.

‘‘(ii) EXCEPTION FOR INDEPENDENT OIL ANDGAS PRODUCERS AND ROYALTY OWNERS.—In thecase of any taxable year beginning after De-cember 31, 1992, clause (i) (and subparagraph(C)(i)) shall not apply to any deduction fordepletion computed in accordance with sec-tion 613A(c).’’

(b) INTANGIBLE DRILLING COSTS.—(1) Section 57(a)(2) is amended by adding at

the end the following new subparagraph:‘‘(E) EXCEPTION FOR INDEPENDENT PRODUC-

ERS.—In the case of any oil or gas well—‘‘(i) IN GENERAL.—In the case of any tax-

able year beginning after December 31, 1992,this paragraph shall not apply to any tax-payer which is not an integrated oil com-pany (as defined in section 291(b)(4)).

‘‘(ii) LIMITATION ON BENEFIT.—The reduc-tion in alternative minimum taxable incomeby reason of clause (i) for any taxable yearshall not exceed 40 percent (30 percent incase of taxable years beginning in 1993) ofthe alternative minimum taxable income forsuch year determined without regard toclause (i) and the alternative tax net operat-ing loss deduction under section 56(a)(4).’’

(2) Clause (i) of section 56(g)(4)(D) isamended by adding at the end thereof thefollowing new sentence: ‘‘In the case of ataxpayer other than an integrated oil com-pany (as defined in section 291(b)(4)), in thecase of any oil or gas well, this clause shallnot apply in the case of amounts paid or in-curred in taxable years beginning after De-cember 31, 1992.’’.

(c) CONFORMING AMENDMENTS.—(1) Section 56 is amended by striking sub-

section (h).(2) Section 56(d)(1)(A) is amended to read

as follows:‘‘(A) the amount of such deduction shall

not exceed 90 percent of alternate minimumtaxable income determined without regardto such deduction, and’’.

(3) Section 59(a)(2)(A)(ii) is amended bystriking ‘‘and the alternative tax energypreference deduction under section 56(h)’’and inserting ‘‘and section 57(a)(2)(E)’’.

(4) Section 59A(b)(1) is amended by striking‘‘or the alternative tax energy preference de-duction under section 56(h)’’.

(d) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxableyears beginning after December 31, 1992.SEC. 1916. PERMANENT EXTENSION OF ENERGY

INVESTMENT CREDIT FOR SOLARAND GEOTHERMAL PROPERTY.

(a) GENERAL RULE.—Paragraph (2) of sec-tion 48(a) (defining energy percentage) isamended—

(1) by striking ‘‘Except as provided in sub-paragraph (B), the’’ in subparagraph (A) andinserting ‘‘The’’,

(2) by striking subparagraph (B), and(3) by redesignating subparagraph (C) as

subparagraph (B).(b) EFFECTIVE DATE.—The amendments

made by this section shall take effect onJune 30, 1992.SEC. 1917. NUCLEAR DECOMMISSIONING FUNDS.

(a) REPEAL OF INVESTMENT RESTRICTIONS.—Subparagraph (C) of section 468A(e)(4) (relat-ing to special rules for nuclear decommis-sioning funds) is amended by striking ‘‘de-scribed in section 501(c)(21)(B)(ii)’’.

(b) REDUCTION IN RATE OF TAX.—Paragraph(2) of section 468A(e) is amended—

(1) by striking ‘‘at the rate equal to thehighest rate of tax specified in section 11(b)’’in subparagraph (A) and inserting ‘‘at therate set forth in subparagraph (B)’’, and

(2) by redesignating subparagraphs (B) and(C) as subparagraphs (C) and (D), respec-tively, and by inserting after subparagraph(A) the following new subparagraph:

‘‘(B) RATE OF TAX.—For purposes of sub-paragraph (A), the rate set forth in this sub-paragraph is—

‘‘(i) 22 percent in the case of taxable yearsbeginning in calendar year 1994 or 1995, and

‘‘(ii) 20 percent in the case of taxable yearsbeginning after December 31, 1995.’’

(c) EFFECTIVE DATES.—(1) SUBSECTION (a).—The amendment made

by subsection (a) shall apply to taxable yearsbeginning after December 31, 1992.

(2) SUBSECTION (b).—The amendments madeby subsection (b) shall apply to taxable yearsbeginning after December 31, 1993. Section 15of the Internal Revenue Code of 1986 shallnot apply to any change in rate resultingfrom the amendment made by subsection (b).SEC. 1918. EXTENSION OF SECTION 29 CREDIT

FOR CERTAIN FACILITIES.Section 29 (relating to credit for producing

fuel from a nonconventional source) isamended by adding at the end thereof thefollowing new subsection:

‘‘(g) EXTENSION FOR CERTAIN FACILITIES.—‘‘(1) IN GENERAL.—In the case of a facility

for producing qualified fuels described insubparagraph (B)(ii) or (C) of subsection(c)(1)—

‘‘(A) for purposes of subsection (f)(1)(B),such facility shall be treated as being placedin service before January 1, 1993, if such fa-cility is placed in service before January 1,1997, pursuant to a binding written contractin effect before January 1, 1996, and

‘‘(B) if such facility is originally placed inservice after December 31, 1992, paragraph (2)of subsection (f) shall be applied with respectto such facility by substituting ‘January 1,2008’ for ‘January 1, 2003’.

‘‘(2) SPECIAL RULE.—Paragraph (1) shall notapply to any facility which produces coke orcoke gas unless the original use of the facil-ity commences with the taxpayer.’’SEC. 1919. TREATMENT UNDER LOCAL FURNISH-

ING RULES OF CERTAIN ELEC-TRICITY TRANSMITTED OUTSIDELOCAL AREA.

(a) IN GENERAL.—Subsection (f) of section142 (relating to local furnishing of electricenergy or gas) is amended to read as follows:

‘‘(f) LOCAL FURNISHING OF ELECTRIC EN-ERGY OR GAS.—For purposes of subsection(a)(8)—

‘‘(1) IN GENERAL.—The local furnishing ofelectric energy or gas from a facility shall

JOURNAL OF THE

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OCTOBER 5T121.25only include furnishing solely within thearea consisting of—

‘‘(A) a city and 1 contiguous county, or‘‘(B) 2 contiguous counties.‘‘(2) TREATMENT OF CERTAIN ELECTRIC EN-

ERGY TRANSMITTED OUTSIDE LOCAL AREA.—‘‘(A) IN GENERAL.—A facility shall not be

treated as failing to meet the local furnish-ing requirement of subsection (a)(8) by rea-son of electricity transmitted pursuant to anorder of the Federal Energy RegulatoryCommission under section 211 or 213 of theFederal Power Act (as in effect on the dateof the enactment of this paragraph) if theportion of the cost of the facility financedwith tax-exempt bonds is not greater thanthe portion of the cost of the facility whichis allocable to the local furnishing of electricenergy (determined without regard to thisparagraph).

‘‘(B) SPECIAL RULE FOR EXISTING FACILI-TIES.—In the case of a facility financed withbonds issued before the date of an order re-ferred to in subparagraph (A) which would(but for this subparagraph) cease to be tax-exempt by reason of subparagraph (A), suchbonds shall not cease to be tax-exempt bonds(and section 150(b)(4) shall not apply) if, tothe extent necessary to comply with sub-paragraph (A)—

‘‘(i) an escrow to pay principal of, premium(if any), and interest on the bonds is estab-lished within a reasonable period after thedate such order becomes final, and

‘‘(ii) bonds are redeemed not later than theearliest date on which such bonds may be re-deemed.’’

(b) EFFECTIVE DATE.—The amendmentmade by subsection (a) shall apply to obliga-tions issued before, on, or after the date ofthe enactment of this Act.SEC. 1920. ALCOHOL FUELS.

(a) REDUCED RATE OF TAX ON GASOLINEMIXED WITH ALCOHOL.—Paragraph (1) of sec-tion 4081(c) (relating to gasoline mixed withalcohol at refinery, etc.) is amended to readas follows:

‘‘(1) IN GENERAL.—Under regulations pre-scribed by the Secretary, subsection (a) shallbe applied by multiplying the otherwise ap-plicable rate by a fraction the numerator ofwhich is 10 and the denominator of whichis—

‘‘(A) 9 in the case of 10 percent gasohol,‘‘(B) 9.23 in the case of 7.7 percent gasohol,

and‘‘(C) 9.43 in the case of 5.7 percent gasohol,

in the case of the removal or entry of anygasoline for use in producing gasohol at thetime of such removal or entry. Subject tosuch terms and conditions as the Secretarymay prescribe (including the application ofsection 4101), the treatment under the pre-ceding sentence also shall apply to use inproducing gasohol after the time of such re-moval or entry.’’

(b) CONFORMING AMENDMENTS.—Section4081(c) is amended—

(1) by striking ‘‘6.1 cents a gallon’’ in para-graph (2) and inserting ‘‘an otherwise appli-cable rate’’, and

(2) by striking paragraph (4) and insertingthe following new paragraph:

‘‘(4) OTHERWISE APPLICABLE RATE.—Forpurposes of this subsection—

‘‘(A) IN GENERAL.—In the case of the High-way Trust Fund financing rate, the term‘otherwise applicable rate’ means—

‘‘(i) 6.1 cents a gallon for 10 percent gas-ohol,

‘‘(ii) 7.342 cents a gallon for 7.7 percent gas-ohol, and

‘‘(iii) 8.422 cents a gallon for 5.7 percentgasohol.

In the case of gasohol none of the alcohol inwhich consists of ethanol, clauses (i), (ii),and (iii) shall be applied by substituting ‘5.5cents’ for ‘6.1 cents’, ‘6.88 cents’ for ‘7.342cents’, and ‘8.08 cents’ for ‘8.422 cents’.

‘‘(B) 10 PERCENT GASOHOL.—The term ‘10percent gasohol’ means any mixture of gaso-line with alcohol if at least 10 percent ofsuch mixture is alcohol.

‘‘(C) 7.7 PERCENT GASOHOL.—The term ‘7.7percent gasohol’ means any mixture of gaso-line with alcohol if at least 7.7 percent, butnot 10 percent or more, of such mixture is al-cohol.

‘‘(D) 5.7 PERCENT GASOHOL.—The term ‘5.7percent gasohol’ means any mixture of gaso-line with alcohol if at least 5.7 percent, butnot 7.7 percent or more, of such mixture isalcohol.’’

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to gasolineremoved (as defined in section 4082 of the In-ternal Revenue Code of 1986) or entered afterDecember 31, 1992.SEC. 1921. TAX-EXEMPT FINANCING FOR ENVI-

RONMENTAL ENHANCEMENTS OFHYDROELECTRIC GENERATING FA-CILITIES.

(a) IN GENERAL.—Subsection (a) of section142 (relating to exempt facility bonds) isamended—

(1) by striking ‘‘or’’ at the end of paragraph(10),

(2) by striking the period at the end ofparagraph (11) and inserting ‘‘, or’’, and


‘‘(12) environmental enhancements of hy-droelectric generating facilities.’’

(b) DEFINITION AND SPECIAL RULES FOR EN-VIRONMENTAL ENHANCEMENTS OF HYDRO-ELECTRIC GENERATING FACILITIES.—

(1) IN GENERAL.—Section 142 is amended byadding at the end the following new sub-section:

‘‘(j) ENVIRONMENTAL ENHANCEMENTS OF HY-DROELECTRIC GENERATING FACILITIES.—

‘‘(1) IN GENERAL.—For purposes of sub-section (a)(12), the term ‘environmental en-hancements of hydroelectric generating fa-cilities’ means property—

‘‘(A) the use of which is related to a feder-ally licensed hydroelectric generating facil-ity owned and operated by a governmentalunit, and

‘‘(B) which—‘‘(i) protects or promotes fisheries or other

wildlife resources, including any fish by-passfacility, fish hatchery, or fisheries enhance-ment facility, or

‘‘(ii) is a recreational facility or other im-provement required by the terms and condi-tions of any Federal licensing permit for theoperation of such generating facility.

‘‘(2) USE OF PROCEEDS.—A bond issued aspart of an issue described in subsection(a)(12) shall not be considered an exempt fa-cility bond unless at least 80 percent of thenet proceeds of the issue of which it is a partare used to finance property described inparagraph (1)(B)(i).’’

(2) FINANCED PROPERTY MUST BE GOVERN-MENTALLY OWNED.—Subparagraph (A) of sec-tion 142(b)(1) (relating to certain facilitiesmust be governmentally owned) is amendedby striking ‘‘(2) or (3)’’ and inserting ‘‘(2), (3),or (12)’’.

(3) EXCLUSION FROM VOLUME CAP.—Para-graph (3) of section 146(g) (relating to excep-tion for certain bonds) is amended—

(A) by striking ‘‘or (2)’’ and inserting ‘‘, (2),or (12)’’, and

(B) by striking ‘‘and docks and wharves’’and inserting ‘‘, docks and wharves, and en-vironmental enhancements of hydroelectricgenerating facilities’’.

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to bondsissued after the date of the enactment of thisAct.SEC. 1922. TRANS-ALASKA PIPELINE LIABILITY

FUND INCOME TAX CREDIT.(a) IN GENERAL.—Section 4612 is amended

by redesignating subsection (e) as subsection

(f) and by inserting after subsection (d) thefollowing new subsection:

‘‘(e) INCOME TAX CREDIT FOR UNUSED PAY-MENTS INTO TRANS-ALASKA PIPELINE LIABIL-ITY FUND.—

‘‘(1) IN GENERAL.—For purposes of section38, the current year business credit shall in-clude the credit determined under this sub-section.

‘‘(2) DETERMINATION OF CREDIT.—‘‘(A) IN GENERAL.—The credit determined

under this subsection for any taxable year isan amount equal to the aggregate creditwhich would be allowed to the taxpayerunder subsection (d) for amounts paid intothe Trans-Alaska Pipeline Liability Fundhad the Oil Spill Liability Trust Fund fi-nancing rate not ceased to apply.

‘‘(B) LIMITATION.—‘‘(i) IN GENERAL.—The amount of the credit

determined under this subsection for anytaxable year with respect to any taxpayershall not exceed the excess of—

‘‘(I) the amount determined under clause(ii), over

‘‘(II) the aggregate amount of the creditdetermined under this subsection for priortaxable years with respect to such taxpayer.

‘‘(ii) OVERALL LIMITATION.—The amount de-termined under this clause with respect toany taxpayer is the excess of—

‘‘(I) the aggregate amount of credit whichwould have been allowed under subsection (d)to the taxpayer for periods before the termi-nation date specified in section 4611(f)(1), ifamounts in the Trans-Alaska Pipeline Li-ability Fund which are actually transferredinto the Oil Spill Liability Fund weretranferred on January 1, 1990, and the OilSpill Liability Trust Fund financing rate didnot terminate before such termination date,over

‘‘(II) the aggregate amount of the credit al-lowed under subsection (d) to the taxpayer.

‘‘(3) COST OF INCOME TAX CREDIT BORNE BYTRUST FUND.—

‘‘(A) IN GENERAL.—The Secretary shallfrom time to time transfer from the Oil SpillLiability Trust Fund to the general fund ofthe Treasury amounts equal to the creditsallowed by reason of this subsection.

‘‘(B) TRUST FUND BALANCE MAY NOT BE RE-DUCED BELOW $1,000,000,000.—Transfers may bemade under subparagraph (A) only to the ex-tent that the unobligated balance of the OilSpill Liability Trust Fund exceeds$1,000,000,000. If any transfer is not made byreason of the preceding sentence, such trans-fer shall be made as soon as permitted undersuch sentence.

‘‘(4) NO CARRYBACK.—No portion of the un-used business credit for any taxable yearwhich is attributable to the credit deter-mined under this subsection may be carriedto a taxable year beginning on or before thedate of the enactment of this paragraph.’’.

(b) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxableyears beginning after the date of the enact-ment of this Act.

Subtitle B—Revenue Increases, Etc.SEC. 1931. INCREASED BASE TAX AMOUNT ON

OZONE-DEPLETING CHEMICALS.(a) IN GENERAL.—Subparagraph (B) of sec-

tion 4681(b)(1) (relating to amount of tax) isamended to read as follows:

‘‘(B) BASE TAX AMOUNT.—The base taxamount for purposes of subparagraph (A)with respect to any sale or use during a cal-endar year before 1996 with respect to anyozone-depleting chemical is the amount de-termined under the following table for suchcalendar year:

Base tax‘‘Calendar year: amount:

1993 ............................................ 3.351994 ............................................ 4.351995 ............................................ 5.35.’’


2661

1992 T121.25(b) RATES RETAINED FOR CHEMICALS USED

IN RIGID FOAM INSULATION.—The table in sub-paragraph (B) of section 4682(g)(2) (relatingto chemicals used in rigid foam insulation) isamended by striking ‘‘10’’ and inserting‘‘7.46’’.

(c) FLOOR STOCKS.—Subparagraph (C) ofsection 4682(h)(2) (relating to tax-increasedates) is amended by striking ‘‘of 1991, 1992,1993, and 1994’’ and inserting ‘‘of any cal-endar year after 1991’’.

(d) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxablechemicals sold or used on or after January 1,1993.SEC. 1932. TREATMENT OF CERTAIN OZONE DE-

PLETING CHEMICALS.(a) TREATMENT OF CERTAIN HALONS.—The

table contained in subparagraph (A) of sec-tion 4682(g)(2) (relating to halons) is amendedto read as follows:

‘‘In the case of: The applicable percentagein the case of sales or use

during 1993 is:Halon-1211 ................................. 2.49Halon-1301 ................................. 0.75Halon-2402 ................................. 1.24.’’

(b) CHEMICALS USED FOR STERILIZING MEDI-CAL INSTRUMENTS AND AS PROPELLANTS INMETERED-DOSE INHALERS.—Subsection (g) ofsection 4682 (relating to phase-in of tax oncertain substances) is amended by adding atthe end thereof the following new paragraph:

‘‘(4) CHEMICALS USED FOR STERILIZING MEDI-CAL INSTRUMENTS AND AS PROPELLANTS INMETERED-DOSE INHALERS.—

‘‘(A) RATE OF TAX.—‘‘(i) IN GENERAL.—In the case of—‘‘(I) any use during the applicable period of

any substance to sterilize medical instru-ments or as propellants in metered-dose in-halers, or

‘‘(II) any qualified sale during such periodby the manufacturer, producer, or importerof any substance,the tax imposed by section 4681 shall beequal to $1.67 per pound.

‘‘(ii) QUALIFIED SALE.—For purposes ofclause (i), the term ‘qualified sale’ meansany sale by the manufacturer, producer, orimporter of any substance—

‘‘(I) for use by the purchaser to sterilizemedical instruments or as propellants in me-tered-dose inhalers, or

‘‘(II) for resale by the purchaser to a 2dpurchaser for such use by the 2d purchaser.

The preceding sentence shall apply only ifthe manufacturer, producer, and importer,and the 1st and 2d purchasers (if any) meetsuch registration requirements as may beprescribed by the Secretary.

‘‘(B) OVERPAYMENTS.—If any substanceon which tax was paid under this subchapteris used during the applicable period by anyperson to sterilize medical instruments or aspropellants in metered-dose inhalers, creditor refund without interest shall be allowedto such person in an amount equal to the ex-cess of—

‘‘(i) the tax paid under this subchapter onsuch substance, or

‘‘(ii) the tax (if any) which would be im-posed by section 4681 if such substance wereused for such use by the manufacture, pro-ducer, or importer thereof on the date of itsuse by such person.

Amounts payable under the preceding sen-tence with respect to uses during the taxableyear shall be treated as described in section34(a) for such year unless claim thereof hasbeen timely filed under this subparagraph.

‘‘(C) APPLICABLE PERIOD.—For purposes ofthis paragraph, the term ‘applicable period’means—

‘‘(i) 1993 in the case of substances to steri-lize medical instruments, and

‘‘(ii) any period after 1992 in the case ofpropellants in metered-dose inhalers.’’

(c) TREATMENT OF METHYL CHLOROFORM.—Subsection (g) of section 4682, as amended bysubsection (b), is amended by adding at theend thereof the following new paragraph:

‘‘(5) TREATMENT OF METHYL CHLOROFORM.—The tax imposed by section 4681 during 1993by reason of the treatment of methyl chloro-form as an ozone-depleting chemical shall be63.02 percent of the amount of such tax whichwould (but for this paragraph) be imposed.’’

(d) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to sales anduses on or after January 1, 1993.SEC. 1933. INFORMATION REPORTING WITH RE-

SPECT TO CERTAIN SELLER-PRO-VIDED FINANCING.

(a) GENERAL RULE.—Section 6109 (relatingto identifying numbers) is amended by add-ing at the end thereof the following new sub-section:

‘‘(h) IDENTIFYING INFORMATION REQUIREDWITH RESPECT TO CERTAIN SELLER-PROVIDEDFINANCING.—

‘‘(1) PAYOR.—If any taxpayer claims a de-duction under section 163 for qualified resi-dence interest on any seller-provided financ-ing, such taxpayer shall include on the re-turn claiming such deduction the name, ad-dress, and TIN of the person to whom suchinterest is paid or accrued.

‘‘(2) RECIPIENT.—If any person receives oraccrues interest referred to in paragraph (1),such person shall include on the return forthe taxable year in which such interest is soreceived or accrued the name, address, andTIN of the person liable for such interest.

‘‘(3) FURNISHING OF INFORMATION BETWEENPAYOR AND RECIPIENT.—If any person is re-quired to include the TIN of another personon a return under paragraph (1) or (2), suchother person shall furnish his TIN to suchperson.

‘‘(4) SELLER-PROVIDED FINANCING.—For pur-poses of this subsection, the term ‘seller-pro-vided financing’ means any indebtedness in-curred in acquiring any residence if the per-son to whom such indebtedness is owed is theperson from whom such residence was ac-quired.’’.

(b) PENALTY.—Paragraph (3) of section6724(d) (relating to specified information re-porting requirement) is amended by striking‘‘and’’ at the end of subparagraph (C), bystriking the period at the end of subpara-graph (D) and inserting ‘‘, and’’, and by add-ing at the end thereof the following new sub-paragraph:

‘‘(E) any requirement under section 6109(f)that—

‘‘(i) a person include on his return thename, address, and TIN of another person, or

‘‘(ii) a person furnish his TIN to anotherperson.’’

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxableyears beginning after December 31, 1991.SEC. 1934. INCREASED WITHHOLDING ON GAM-

BLING WINNINGS.(a) IN GENERAL.—Section 3402(q)(1) (relat-

ing to extension of withholding to certaingambling winnings) is amended by striking‘‘20 percent’’ and inserting ‘‘28 percent’’.

(b) EFFECTIVE DATE.—The amendmentmade by this section applies to payments re-ceived after December 31, 1992.SEC. 1935. INCREASE IN BACKUP WITHHOLDING

RATE.(a) IN GENERAL.—Section 3406(a)(1) is

amended by striking ‘‘20 percent’’ and insert-ing ‘‘31 percent’’.

(b) EFFECTIVE DATE.—The amendmentmade by subsection (a) shall apply toamounts paid after December 31, 1992.SEC. 1936. CLASSIFICATION OF CERTAIN INTER-

EST AS STOCK OR INDEBTEDNESS.(a) GENERAL RULE.—Section 385 (relating

to treatment of certain interests in corpora-tions as stock or indebtedness) is amended

by adding at the end thereof the followingnew subsection:

‘‘(c) EFFECT OF CLASSIFICATION BYISSUER.—

‘‘(1) IN GENERAL.—The characterization (asof the time of issuance) by the issuer as towhether an interest in a corporation is stockor indebtedness shall be binding on suchissuer and on all holders of such interest (butshall not be binding on the Secretary).

‘‘(2) NOTIFICATION OF INCONSISTENT TREAT-MENT.—Except as provided in regulations,paragraph (1) shall not apply to any holder ofan interest if such holder on his return dis-closes that he is treating such interest in amanner inconsistent with the characteriza-tion referred to in paragraph (1).

‘‘(3) REGULATIONS.—The Secretary is au-thorized to require such information as theSecretary determines to be necessary tocarry out the provisions of this subsection.’’

(b) EFFECTIVE DATE.—The amendmentmade by subsection (a) shall apply to instru-ments issued after the date of the enactmentof this Act.SEC. 1937. RECOGNITION OF PRECONTRIBUTION

GAIN IN CASE OF CERTAIN DIS-TRIBUTIONS TO CONTRIBUTINGPARTNER.

(a) GENERAL RULE.—Subpart C of part II ofsubchapter K of chapter 1 (relating to dis-tributions by a partnership) is amended byadding at the end thereof the following newsection:‘‘SEC. 737. RECOGNITION OF PRECONTRIBUTION

GAIN IN CASE OF CERTAIN DIS-TRIBUTIONS TO CONTRIBUTINGPARTNER.

‘‘(a) GENERAL RULE.—In the case of anydistribution by a partnership to a partner,such partner shall be treated as recognizinggain in an amount equal to the lesser of—

‘‘(1) the excess (if any) of (A) the fair mar-ket value of property (other than money) re-ceived in the distribution over (B) the ad-justed basis of such partner’s interest in thepartnership immediately before the distribu-tion reduced (but not below zero) by theamount of money received in the distribu-tion, or

‘‘(2) the net precontribution gain of thepartner.Gain recognized under the preceding sen-tence shall be in addition to any gain recog-nized under section 731. The character ofsuch gain shall be determined by reference tothe proportionate character of the netprecontribution gain.

‘‘(b) NET PRECONTRIBUTION GAIN.—For pur-poses of this section, the term ‘netprecontribution gain’ means the net gain (ifany) which would have been recognized bythe distributee partner under section704(c)(1)(B) if all property which—

‘‘(1) had been contributed to the partner-ship by the distributee partner within 5years of the distribution, and

‘‘(2) is held by such partnership imme-diately before the distribution,had been distributed by such partnership toanother partner.

‘‘(c) BASIS RULES.—‘‘(1) PARTNER’S INTEREST.—The adjusted

basis of a partner’s interest in a partnershipshall be increased by the amount of any gainrecognized by such partner under subsection(a). Except for purposes of determining theamount recognized under subsection (a),such increase shall be treated as occurringimmediately before the distribution.

‘‘(2) PARTNERSHIP’S BASIS IN CONTRIBUTEDPROPERTY.—Appropriate adjustments shallbe made to the adjusted basis of the partner-ship in the contributed property referred toin subsection (b) to reflect gain recognizedunder subsection (a).

‘‘(d) EXCEPTIONS.—‘‘(1) DISTRIBUTIONS OF PREVIOUSLY CONTRIB-

UTED PROPERTY.—If any portion of the prop-

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OCTOBER 5T121.25erty distributed consists of property whichhad been contributed by the distributee part-ner to the partnership, such property shallnot be taken into account under subsection(a)(1) and shall not be taken into account indetermining the amount of the netprecontribution gain. If the property distrib-uted consists of an interest in an entity, thepreceding sentence shall not apply to the ex-tent that the value of such interest is attrib-utable to property contributed to such en-tity after such interest had been contributedto the partnership.

‘‘(2) COORDINATION WITH SECTION 751.—Thissection shall not apply to the extent section751(b) applies to such distribution.’’

(b) TECHNICAL AMENDMENTS.—(1) Subparagraph (B) of section 704(c)(1) is

amended by striking out ‘‘is distributed’’ inthe material preceding clause (i) and insert-ing ‘‘is distributed (directly or indirectly)’’.

(2) Subsection (c) of section 731 is amend-ed—

(A) by striking ‘‘and section 751’’ and in-serting ‘‘, section 751’’, and

(B) by inserting before the period at theend thereof the following: ‘‘, and section 737(relating to recognition of precontributiongain in case of certain distributions)’’.

(3) The table of sections for subpart B ofpart II of subchapter K of chapter 1 isamended by adding at the end thereof thefollowing new item:

‘‘Sec. 737. Recognition of precontributiongain in case of certain distribu-tions to contributing partner.’’

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to distribu-tions on or after June 25, 1992.SEC. 1938. DEDUCTION FOR EXPENSES AWAY

FROM HOME.(a) IN GENERAL.—Section 162(a) is amended

by adding at the end the following new sen-tence: ‘‘For purposes of paragraph (2), thetaxpayer shall not be treated as being tem-porarily away from home during any periodof employment if such period exceeds 1year.’’

(b) EFFECTIVE DATE.—The amendmentmade by subsection (a) shall apply to costspaid or incurred after December 31, 1992.SEC. 1939. REPORTING REQUIREMENTS WITH RE-

SPECT TO CERTAIN APPORTIONEDREAL ESTATE TAXES.

(a) GENERAL RULE.—Paragraph (4) of sec-tion 6045(e) is amended to read as follows:

‘‘(4) ADDITIONAL INFORMATION REQUIRED.—In the case of a real estate transaction in-volving a residence, the real estate reportingperson shall include the following informa-tion on the return under subsection (a) andon the statement under subsection (b):

‘‘(A) The portion of any real property taxwhich is treated as a tax imposed on the pur-chaser by reason of section 164(d)(1)(B).

‘‘(B) Whether or not the financing (if any)of the seller was federally-subsidized indebt-edness (as defined in section 143(m)(3)).’’

(b) EFFECTIVE DATE.—The amendmentmade by subsection (a) shall apply to trans-actions after December 31, 1992.SEC. 1940. USE OF EXCESS ASSETS OF BLACK

LUNG BENEFIT TRUSTS FORHEALTH CARE BENEFITS.

(a) GENERAL RULE.—Paragraph (21) of sec-tion 501(c) is amended to read as follows:

‘‘(21)(A) A trust or trusts established inwriting, created or organized in the UnitedStates, and contributed to by any person (ex-cept an insurance company) if—

‘‘(i) the purpose of such trust or trusts isexclusively—

‘‘(I) to satisfy, in whole or in part, the li-ability of such person for, or with respect to,claims for compensation for disability ordeath due to pneumoconiosis under BlackLung Acts,

‘‘(II) to pay premiums for insurance exclu-sively covering such liability,

‘‘(III) to pay administrative and other inci-dental expenses of such trust in connectionwith the operation of the trust and the proc-essing of claims against such person underBlack Lung Acts, and

‘‘(IV) to pay accident or health benefits forretired miners and their spouses and depend-ents (including administrative and other in-cidental expenses of such trust in connectiontherewith) or premiums for insurance exclu-sively covering such benefits; and

‘‘(ii) no part of the assets of the trust maybe used for, or diverted to, any purpose otherthan—

‘‘(I) the purposes described in clause (i),‘‘(II) investment (but only to the extent

that the trustee determines that a portion ofthe assets is not currently needed for thepurposes described in clause (i)) in qualifiedinvestments, or

‘‘(III) payment into the Black Lung Dis-ability Trust Fund established under section9501, or into the general fund of the UnitedStates Treasury (other than in satisfactionof any tax or other civil or criminal liabilityof the person who established or contributedto the trust).

‘‘(B) No deduction shall be allowed underthis chapter for any payment described insubparagraph (A)(i)(IV) from such trust.

‘‘(C) Payments described in subparagraph(A)(i)(IV) may be made from such trust dur-ing a taxable year only to the extent thatthe aggregate amount of such payments dur-ing such taxable year does not exceed thelesser of—

‘‘(i) the excess (if any) (as of the close ofthe preceding taxable year) of—

‘‘(I) the fair market value of the assets ofthe trust, over

‘‘(II) 110 percent of the present value of theliability described in subparagraph (A)(i)(I)of such person, or

‘‘(ii) the excess (if any) of—‘‘(I) the sum of a similar excess determined

as of the close of the last taxable year endingbefore the date of the enactment of this sub-paragraph plus earnings thereon as of theclose of the taxable year preceding the tax-able year involved, over

‘‘(II) the aggregate payments described insubparagraph (A)(i)(IV) made from the trustduring all taxable years beginning after thedate of the enactment of this subparagraph.

The determinations under the preceding sen-tence shall be made by an independent actu-ary using actuarial methods and assump-tions (not inconsistent with the regulationsprescribed under section 192(c)(1)(A)) each ofwhich is reasonable and which are reasonablein the aggregate.

‘‘(D) For purposes of this paragraph:‘‘(i) The term ‘Black Lung Acts’ means

part C of title IV of the Federal Mine Safetyand Health Act of 1977, and any State lawproviding compensation for disability ordeath due to that pneumoconiosis.

‘‘(ii) The term ‘qualified investments’means—

‘‘(I) public debt securities of the UnitedStates,

‘‘(II) obligations of a State or local govern-ment which are not in default as to principalor interest, and

‘‘(III) time or demand deposits in a bank(as defined in section 581) or an insured cred-it union (within the meaning of section 101(6)of the Federal Credit Union Act, 12 U.S.C.1752(6)) located in the United States.

‘‘(iii) The term ‘miner’ has the same mean-ing as such term has when used in section402(d) of the Black Lung Benefits Act (30U.S.C. 902(d)).

‘‘(iv) The term ‘incidental expenses’ in-cludes legal, accounting, actuarial, andtrustee expenses.’’

(b) EXCEPTION FROM TAX ON SELF-DEAL-ING.—Section 4951(f) is amended by striking

‘‘clause (i) of section 501(c)(21)(A)’’ and in-serting ‘‘subclause (I) or (IV) of section501(c)(21)(A)(i)’’.

(c) TECHNICAL AMENDMENT.—Paragraph (4)of section 192(c) is amended by striking‘‘clause (ii) of section 501(c)(21)(B)’’ and in-serting ‘‘subclause (II) of section501(c)(21)(A)(ii)’’.

(d) EFFECTIVE DATE.—The amendmentsmade by this section shall apply to taxableyears beginning after December 31, 1991.SEC. 1941. TREATMENT OF PORTIONS OF PROP-

ERTY UNDER MARITAL DEDUCTION.(a) ESTATE TAX.—Subsection (b) of section

2056 (relating to limitation in case of life es-tate or other terminable interest) is amend-ed by adding at the end thereof the followingnew paragraph:

‘‘(10) SPECIFIC PORTION.—For purposes ofparagraphs (5), (6), and (7)(B)(iv), the term‘specific portion’ only includes a portion de-termined on a fractional or percentagebasis.’’

(b) GIFT TAX.—(1) Subsection (e) of section 2523 is amend-

ed by adding at the end thereof the followingnew sentence: ‘‘For purposes of this sub-section, the term ‘specific portion’ only in-cludes a portion determined on a fractionalor percentage basis.’’

(2) Paragraph (3) of section 2523(f) isamended by inserting before the period atthe end thereof the following: ‘‘and the rulesof section 2056(b)(10) shall apply’’.

(c) EFFECTIVE DATES.—(1) SUBSECTION (a).—(A) IN GENERAL.—Except as provided in

subparagraph (B), the amendment made bysubsection (a) shall apply to the estates ofdecedents dying after the date of the enact-ment of this Act.

(B) EXCEPTION.—The amendment made bysubsection (a) shall not apply to any interestin property which passes (or has passed) tothe surviving spouse of the decedent pursu-ant to a will (or revocable trust) in existenceon the date of the enactment of this Act if—

(i) the decedent dies on or before the date3 years after such date of enactment, or

(ii) the decedent was, on such date of en-actment, under a mental disability to changethe disposition of his property and did notregain his competence to dispose of suchproperty before the date of his death.The preceding sentence shall not apply ifsuch will (or revocable trust) is amended atany time after such date of enactment in anyrespect which will increase the amount ofthe interest which so passes or alters theterms of the transfer by which the interestso passes.

(2) SUBSECTION (b).—The amendments madeby subsection (b) shall apply to gifts madeafter the date of the enactment of this Act.SEC. 1942. UNIFORM EXEMPTION AMOUNT FOR

GAMBLING WINNINGS SUBJECT TOWITHHOLDING.

(a) IN GENERAL.—Subparagraphs (A) and(C) of section 3402(q)(3) are each amended bystriking ‘‘$1,000’’ and inserting ‘‘$5,000’’.

(b) EFFECTIVE DATE.—The amendmentsmade by subsection (a) shall apply to pay-ments of winnings after December 31, 1992.

Subtitle C—Health Care of Coal MinersSEC. 19141. SHORT TITLE.

This subtitle may be cited as the ‘‘Coal In-dustry Retiree Health Benefit Act of 1992’’.SEC. 19142. FINDINGS AND DECLARATION OF

POLICY.(a) FINDINGS.—The Congress finds that—(1) the production, transportation, and use

of coal substantially affects interstate andforeign commerce and the national public in-terest; and

(2) in order to secure the stability of inter-state commerce, it is necessary to modifythe current private health care benefit planstructure for retirees in the coal industry to


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1992 T121.25identify persons most responsible for plan li-abilities in order to stabilize plan fundingand allow for the provision of health carebenefits to such retirees.

(b) STATEMENT OF POLICY.—It is the policyof this subtitle—

(1) to remedy problems with the provisionand funding of health care benefits with re-spect to the beneficiaries of multiemployerbenefit plans that provide health care bene-fits to retirees in the coal industry;

(2) to allow for sufficient operating assetsfor such plans; and

(3) to provide for the continuation of a pri-vately financed self-sufficient program forthe delivery of health care benefits to thebeneficiaries of such plans.SEC. 19143. COAL INDUSTRY HEALTH BENEFITS

PROGRAM.(a) IN GENERAL.—The Internal Revenue

Code of 1986 is amended by adding at the endthe following new subtitle:

‘‘Subtitle J—Coal Industry Health Benefits‘‘CHAPTER 99. COAL INDUSTRY HEALTH BENE-

FITS.‘‘CHAPTER 99—COAL INDUSTRY HEALTH

BENEFITS‘‘SUBCHAPTER A—Definitions of general ap-

plicability.‘‘SUBCHAPTER B—Combined benefit fund.‘‘SUBCHAPTER C—Health benefits of certain

miners.‘‘SUBCHAPTER D—Other provisions.

‘‘Subchapter A—Definitions of GeneralApplicability

‘‘Sec. 9701. Definitions of general applicabil-ity.

‘‘SEC. 9701. DEFINITIONS OF GENERAL APPLICA-BILITY.

‘‘(a) PLANS AND FUNDS.—For purposes ofthis chapter—

‘‘(1) UMWA BENEFIT PLAN.—‘‘(A) IN GENERAL.—The term ‘UMWA Bene-

fit Plan’ means a plan—‘‘(i) which is described in section 404(c), or

a continuation thereof; and‘‘(ii) which provides health benefits to re-

tirees and beneficiaries of the industry whichmaintained the 1950 UMWA Pension Plan.

‘‘(B) 1950 UMWA BENEFIT PLAN.—The term‘1950 UMWA Benefit Plan’ means a UMWABenefit Plan, participation in which is sub-stantially limited to individuals who retiredbefore 1976.

‘‘(C) 1974 UMWA BENEFIT PLAN.—The term‘1974 UMWA Benefit Plan’ means a UMWABenefit Plan, participation in which is sub-stantially limited to individuals who retiredon or after January 1, 1976.

‘‘(2) 1950 UMWA PENSION PLAN.—The term‘1950 UMWA Pension Plan’ means a pensionplan described in section 404(c) (or a continu-ation thereof), participation in which is sub-stantially limited to individuals who retiredbefore 1976.

‘‘(3) 1974 UMWA PENSION PLAN.—The term‘1974 UMWA Pension Plan’ means a pensionplan described in section 404(c) (or a continu-ation thereof), participation in which is sub-stantially limited to individuals who retiredin 1976 and thereafter.

‘‘(4) 1992 UMWA BENEFIT PLAN.—The term‘1992 UMWA Benefit Plan’ means the plan re-ferred to in section 9713A.

‘‘(5) COMBINED FUND.—The term ‘CombinedFund’ means the United Mine Workers ofAmerica Combined Benefit Fund establishedunder section 9702.

‘‘(b) AGREEMENTS.—For purposes of thissection—

‘‘(1) COAL WAGE AGREEMENT.—The term‘coal wage agreement’ means—

‘‘(A) the National Bituminous Coal WageAgreement, or

‘‘(B) any other agreement entered into be-tween an employer in the coal industry and

the United Mine Workers of America that re-quired or requires one or both of the follow-ing:

‘‘(i) the provision of health benefits to re-tirees of such employer, eligibility for whichis based on years of service credited under aplan established by the settlors and de-scribed in section 404(c) or a continuation ofsuch plan; or

‘‘(ii) contributions to the 1950 UMWA Bene-fit Plan or the 1974 UMWA Benefit Plan, orany predecessor thereof.

‘‘(2) SETTLORS.—The term ‘settlors’ meansthe United Mine Workers of America and theBituminous Coal Operators’ Association, Inc.(referred to in this chapter as the ‘BCOA’).

‘‘(3) NATIONAL BITUMINOUS COAL WAGEAGREEMENT.—The term ‘National Bitu-minous Coal Wage Agreement’ means a col-lective bargaining agreement negotiated bythe BCOA and the United Mine Workers ofAmerica.

‘‘(c) TERMS RELATING TO OPERATORS.—Forpurposes of this section—

‘‘(1) SIGNATORY OPERATOR.—The term ‘sig-natory operator’ means a person which is orwas a signatory to a coal wage agreement.

‘‘(2) RELATED PERSONS.—‘‘(A) IN GENERAL.—A person shall be con-

sidered to be a related person to a signatoryoperator if that person is—

‘‘(i) a member of the controlled group ofcorporations (within the meaning of section52(a)) which includes such signatory opera-tor;

‘‘(ii) a trade or business which is undercommon control (as determined under sec-tion 52(b)) with such signatory operator; or

‘‘(iii) any other person who is identified ashaving a partnership interest or joint ven-ture with a signatory operator in a businesswithin the coal industry, but only if suchbusiness employed eligible beneficiaries, ex-cept that this clause shall not apply to a per-son whose only interest is as a limited part-ner.

A related person shall also include a succes-sor in interest of any person described inclause (i), (ii), or (iii).

‘‘(B) TIME FOR DETERMINATION.—The rela-tionships described in clauses (i), (ii), and(iii) of subparagraph (A) shall be determinedas of July 20, 1992, except that if, on July 20,1992, a signatory operator is no longer inbusiness, the relationships shall be deter-mined as of the time immediately beforesuch operator ceased to be in business.

‘‘(3) 1988 AGREEMENT OPERATOR.—The term‘1988 agreement operator’ means—

‘‘(A) a signatory operator which was a sig-natory to the 1988 National Bituminous CoalWage Agreement,

‘‘(B) an employer in the coal industrywhich was a signatory to an agreement con-taining pension and health care contributionand benefit provisions which are the same asthose contained in the 1988 National Bitu-minous Coal Wage Agreement, or

‘‘(C) an employer from which contributionswere actually received after 1987 and beforeJuly 20, 1992, by the 1950 UMWA Benefit Planor the 1974 UMWA Benefit Plan in connec-tion with employment in the coal industryduring the period covered by the 1988 Na-tional Bituminous Coal Wage Agreement.

‘‘(4) LAST SIGNATORY OPERATOR.—The term‘last signatory operator’ means, with respectto a coal industry retiree, a signatory opera-tor which was the most recent coal industryemployer of such retiree.

‘‘(5) ASSIGNED OPERATOR.—The term ‘as-signed operator’ means, with respect to aneligible beneficiary defined in section 9703(f),the signatory operator to which liabilityunder subchapter B with respect to the bene-ficiary is assigned under section 9706.

‘‘(6) OPERATORS OF DEPENDENT BENE-FICIARIES.—For purposes of this chapter, the

signatory operator, last signatory operator,or assigned operator of any eligible bene-ficiary under this chapter who is a coal in-dustry retiree shall be considered to be thesignatory operator, last signatory operator,or assigned operator with respect to anyother individual who is an eligible bene-ficiary under this chapter by reason of a re-lationship to the retiree.

‘‘(7) BUSINESS.—For purposes of this chap-ter, a person shall be considered to be inbusiness if such person conducts or derivesrevenue from any business activity, whetheror not in the coal industry.

‘‘(d) ENACTMENT DATE.—For purposes ofthis chapter, the term ‘enactment date’means the date of the enactment of thischapter.

‘‘Subchapter B—Combined Benefit Fund‘‘Part I—ESTABLISHMENT AND BENEFITS

‘‘Part II—FINANCING

‘‘Part III—ENFORCEMENT

‘‘Part IV—OTHER PROVISIONS

‘‘PART I—ESTABLISHMENT AND BENEFITS‘‘Sec. 9702. Establishment of the United

Mine Workers of America Com-bined Benefit Fund.

‘‘Sec. 9703. Plan benefits.‘‘SEC. 9702. ESTABLISHMENT OF THE UNITED

MINE WORKERS OF AMERICA COM-BINED BENEFIT FUND.

‘‘(a) ESTABLISHMENT.—‘‘(1) IN GENERAL.—As soon as practicable

(but not later than 60 days) after the enact-ment date, the persons described in sub-section (b) shall designate the individuals toserve as trustees. Such trustees shall createa new private plan to be known as the UnitedMine Workers of America Combined BenefitFund.

‘‘(2) MERGER OF RETIREE BENEFIT PLANS.—As of February 1, 1993, the settlors of the 1950UMWA Benefit Plan and the 1974 UMWABenefit Plan shall cause such plans to bemerged into the Combined Fund, and suchmerger shall not be treated as an employerwithdrawal for purposes of any 1988 coalwage agreement.

‘‘(3) TREATMENT OF PLAN.—The CombinedFund shall be—

‘‘(A) a plan described in section 302(c)(5) ofthe Labor Management Relations Act, 1947(29 U.S.C. 186(c)(5)),

‘‘(B) an employee welfare benefit planwithin the meaning of section 3(1) of the Em-ployee Retirement Income Security Act of1974 (29 U.S.C. 1002(1)), and

‘‘(C) a multiemployer plan within themeaning of section 3(37) of such Act (29U.S.C. 1002(37)).

‘‘(4) TAX TREATMENT.—For purposes of thistitle, the Combined Fund and any relatedtrust shall be treated as an organization ex-empt from tax under section 501(a).

‘‘(b) BOARD OF TRUSTEES.—‘‘(1) IN GENERAL.—For purposes of sub-

section (a), the board of trustees for theCombined Fund shall be appointed as fol-lows:

‘‘(A) one individual who represents employ-ers in the coal mining industry shall be des-ignated by the BCOA;

‘‘(B) one individual shall be designated bythe three employers, other than 1988 agree-ment operators, who have been assigned thegreatest number of eligible beneficiariesunder section 9706;

‘‘(C) two individuals designated by theUnited Mine Workers of America; and

‘‘(D) three persons selected by the personsappointed under subparagraphs (A), (B), and(C).

‘‘(2) SUCCESSOR TRUSTEES.—Any successortrustee shall be appointed in the same man-ner as the trustee being succeeded. The planestablishing the Combined Fund shall pro-vide for the removal of trustees.

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OCTOBER 5T121.25‘‘(3) SPECIAL RULES.—‘‘(A) BCOA.—If the BCOA ceases to exist,

any trustee or successor under paragraph(1)(A) shall be designated by the 3 employerswho were members of the BCOA on the en-actment date and who have been assignedthe greatest number of eligible beneficiariesunder section 9706.

‘‘(B) FORMER SIGNATORIES.—The initialtrustee under paragraph (1)(B) shall be des-ignated by the 3 employers, other than 1988agreement operators, which the records ofthe 1950 UMWA Benefit Plan and 1974 UMWABenefit Plan indicate have the greatest num-ber of eligible beneficiaries as of the enact-ment date, and such trustee and any succes-sor shall serve until November 1, 1993.

‘‘(c) PLAN YEAR.—The first plan year of theCombined Fund shall begin February 1, 1993,and end September 30, 1993. Each succeedingplan year shall begin on October 1 of eachcalendar year.‘‘SEC. 9703. PLAN BENEFITS.

‘‘(a) IN GENERAL.—Each eligible bene-ficiary of the Combined Fund shall receive—

‘‘(1) health benefits described in subsection(b), and

‘‘(2) in the case of an eligible beneficiarydescribed in subsection (f)(1), death benefitscoverage described in subsection (c).

‘‘(b) HEALTH BENEFITS.—‘‘(1) IN GENERAL.—The trustees of the Com-

bined Fund shall provide health care benefitsto each eligible beneficiary by enrolling thebeneficiary in a health care services planwhich undertakes to provide such benefits ona prepaid risk basis. The trustees shall uti-lize all available plan resources to ensurethat, consistent with paragraph (2), coverageunder the managed care system shall to themaximum extent feasible be substantiallythe same as (and subject to the same limita-tions of) coverage provided under the 1950UMWA Benefit Plan and the 1974 UMWABenefit Plan as of January 1, 1992.

‘‘(2) PLAN PAYMENT RATES.—‘‘(A) IN GENERAL.—The trustees of the

Combined Fund shall negotiate paymentrates with the health care services plans de-scribed in paragraph (1) for each plan yearwhich are in amounts which—

‘‘(i) vary as necessary to ensure that bene-ficiaries in different geographic areas haveaccess to a uniform level of health benefits;and

‘‘(ii) result in aggregate payments for suchplan year from the Combined Fund which donot exceed the total premium payments re-quired to be paid to the Combined Fundunder section 9704(a) for the plan year, ad-justed as provided in subparagraphs (B) and(C).

‘‘(B) REDUCTIONS.—The amount determinedunder subparagraph (A)(ii) for any plan yearshall be reduced—

‘‘(i) by the aggregate death benefit pre-miums determined under section 9704(c) forthe plan year, and

‘‘(ii) by the amount reserved for plan ad-ministration under subsection (d).

‘‘(C) INCREASES.—The amount determinedunder subparagraph (A)(ii) shall be in-creased—

‘‘(i) by any reduction in the total premiumpayments required to be paid under section9704(a) by reason of transfers described insection 9705,

‘‘(ii) by any carryover to the plan yearfrom any preceding plan year which—

‘‘(I) is derived from amounts described insection 9704(e)(3)(B)(i), and

‘‘(II) the trustees elect to use to pay bene-fits for the current plan year, and

‘‘(iii) any interest earned by the CombinedFund which the trustees elect to use to paybenefits for the current plan year.

‘‘(3) QUALIFIED PROVIDERS.—The trustees ofthe Combined Fund shall not enter into an

agreement under paragraph (1) with any pro-vider of services which is of a type which isrequired to be certified by the Secretary ofHealth and Human Services when providingservices under title XVIII of the Social Secu-rity Act unless the provider is so certified.

‘‘(4) EFFECTIVE DATE.—Benefits shall beprovided under paragraph (1) on and afterFebruary 1, 1993.

‘‘(c) DEATH BENEFITS COVERAGE.—‘‘(1) IN GENERAL.—The trustees of the Com-

bined Fund shall provide death benefits cov-erage to each eligible beneficiary describedin subsection (f)(1) which is identical to thebenefits provided under the 1950 UMWA Pen-sion Plan or 1974 UMWA Pension Plan,whichever is applicable, on July 20, 1992.Such coverage shall be provided on and afterFebruary 1, 1993.

‘‘(2) TERMINATION OF COVERAGE.—The 1950UMWA Pension Plan and the 1974 UMWAPension Plan shall each be amended to pro-vide that death benefits coverage shall notbe provided to eligible beneficiaries on andafter February 1, 1993. This paragraph shallnot prohibit such plans from subsequentlyproviding death benefits not described inparagraph (1).

‘‘(d) RESERVES FOR ADMINISTRATION.—Thetrustees of the Combined Fund may reservefor each plan year, for use in payment of theadministrative costs of the Combined Fund,an amount not to exceed 5 percent of the pre-miums to be paid to the Combined Fundunder section 9704(a) during the plan year.

‘‘(e) LIMITATION ON ENROLLMENT.—TheCombined Fund shall not enroll any individ-ual who is not receiving benefits under the1950 UMWA Benefit Plan or the 1974 UMWABenefit Plan as of July 20, 1992.

‘‘(f) ELIGIBLE BENEFICIARY.—For purposesof this subchapter, the term ‘eligible bene-ficiary’ means an individual who—

‘‘(1) is a coal industry retiree who, on July20, 1992, was eligible to receive, and receiv-ing, benefits from the 1950 UMWA BenefitPlan or the 1974 UMWA Benefit Plan, or

‘‘(2) on such date was eligible to receive,and receiving, benefits in either such plan byreason of a relationship to such retiree.

‘‘PART II—FINANCING‘‘Sec. 9704. Liability of assigned operators.‘‘Sec. 9705. Transfers.‘‘Sec. 9706. Assignment of eligible bene-

ficiaries.‘‘SEC. 9704. LIABILITY OF ASSIGNED OPERATORS.

‘‘(a) ANNUAL PREMIUMS.—Each assigned op-erator shall pay to the Combined Fund foreach plan year beginning on or after Feb-ruary 1, 1993, an annual premium equal tothe sum of the following three premiums—

‘‘(1) the health benefit premium deter-mined under subsection (b) for such planyear, plus

‘‘(2) the death benefit premium determinedunder subsection (c) for such plan year, plus

‘‘(3) the unassigned beneficiaries premiumdetermined under subsection (d) for suchplan year.Any related person with respect to an as-signed operator shall be jointly and severallyliable for any premium required to be paidby such operator.

‘‘(b) HEALTH BENEFIT PREMIUM.—For pur-poses of this chapter—

‘‘(1) IN GENERAL.—The health benefit pre-mium for any plan year for any assigned op-erator shall be an amount equal to the prod-uct of the per beneficiary premium for theplan year multiplied by the number of eligi-ble beneficiaries assigned to such operatorunder section 9706.

‘‘(2) PER BENEFICIARY PREMIUM.—The Sec-retary of Health and Human Services shallcalculate a per beneficiary premium for eachplan year beginning on or after February 1,1993, which is equal to the sum of—

‘‘(A) the amount determined by dividing—‘‘(i) the aggregate amount of payments

from the 1950 UMWA Benefit Plan and the1974 UMWA Benefit Plan for health benefits(less reimbursements but including adminis-trative costs) for the plan year beginningJuly 1, 1991, for all individuals covered undersuch plans for such plan year, by

‘‘(ii) the number of such individuals, plus‘‘(B) the amount determined under sub-

paragraph (A) multiplied by the percentage(if any) by which the medical component ofthe Consumer Price Index for the calendaryear in which the plan year begins exceedssuch component for 1992.

‘‘(3) ADJUSTMENTS FOR MEDICARE REDUC-TIONS.—If, by reason of a reduction in bene-fits under title XVIII of the Social SecurityAct, the level of health benefits under theCombined Fund would be reduced, the trust-ees of the Combined Fund shall increase theper beneficiary premium for the plan year inwhich the reduction occurs and each subse-quent plan year by the amount necessary tomaintain the level of health benefits whichwould have been provided without such re-duction.

‘‘(c) DEATH BENEFIT PREMIUM.—The deathbenefit premium for any plan year for anyassigned operator shall be equal to the appli-cable percentage of the amount, actuariallydetermined, which the Combined Fund willbe required to pay during the plan year fordeath benefits coverage described in section9703(c).

‘‘(d) UNASSIGNED BENEFICIARIES PREMIUM.—The unassigned beneficiaries premium forany plan year for any assigned operator shallbe equal to the applicable percentage of theproduct of the per beneficiary premium forthe plan year multiplied by the number of el-igible beneficiaries who are not assignedunder section 9706 to any person for suchplan year.

‘‘(e) PREMIUM ACCOUNTS; ADJUSTMENTS.—‘‘(1) ACCOUNTS.—The trustees of the Com-

bined Fund shall establish and maintain 3separate accounts for each of the premiumsdescribed in subsections (b), (c), and (d).Such accounts shall be credited with the pre-miums received and debited with expendi-tures allocable to such premiums.

‘‘(2) ALLOCATIONS.—‘‘(A) ADMINISTRATIVE EXPENSES.—Adminis-

trative costs for any plan year shall be allo-cated to premium accounts under paragraph(1) on the basis of expenditures (other thanadministrative costs) from such accountsduring the preceding plan year.

‘‘(B) INTEREST.—Interest shall be allocatedto the account established for health benefitpremiums.

‘‘(3) SHORTFALLS AND SURPLUSES.—‘‘(A) IN GENERAL.—Except as provided in

subparagraph (B), if, for any plan year, thereis a shortfall or surplus in any premium ac-count, the premium for the following planyear for each assigned operator shall be pro-portionately reduced or increased, whicheveris applicable, by the amount of such shortfallor surplus.

‘‘(B) EXCEPTION.—Subparagraph (A) shallnot apply to any surplus in the health bene-fit premium account or the unassigned bene-ficiaries premium account which is attrib-utable to—

‘‘(i) the excess of the premiums credited tosuch account for a plan year over the bene-fits (and administrative costs) debited tosuch account for the plan year, but such ex-cess shall only be available for purposes ofthe carryover described in section9703(b)(2)(C)(ii) (relating to carryovers of pre-miums not used to provide benefits), or

‘‘(ii) interest credited under paragraph(2)(B) for the plan year or any preceding planyear.

‘‘(C) NO AUTHORITY FOR INCREASED PAY-MENTS.—Nothing in this paragraph shall be


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1992 T121.25construed to allow expenditures for healthcare benefits for any plan year in excess ofthe limit under section 9703(b)(2).

‘‘(f) APPLICABLE PERCENTAGE.—For pur-poses of this section—

‘‘(1) IN GENERAL.—The term ‘applicable per-centage’ means, with respect to any assignedoperator, the percentage determined by di-viding the number of eligible beneficiariesassigned under section 9706 to such operatorby the total number of eligible beneficiariesassigned under section 9706 to all such opera-tors (determined on the basis of assignmentsas of October 1, 1993).

‘‘(2) ANNUAL ADJUSTMENTS.—In the case ofany plan year beginning on or after October1, 1994, the applicable percentage for any as-signed operator shall be redetermined underparagraph (1) by making the followingchanges to the assignments as of October 1,1993:

‘‘(A) Such assignments shall be modified toreflect any changes during the period begin-ning October 1, 1993, and ending on the lastday of the preceding plan year pursuant tothe appeals process under section 9706(f).

‘‘(B) The total number of assigned eligiblebeneficiaries shall be reduced by the eligiblebeneficiaries of assigned operators which(and all related persons with respect towhich) had ceased business (within themeaning of section 9701(c)(6)) during the pe-riod described in subparagraph (A).

‘‘(g) PAYMENT OF PREMIUMS.—‘‘(1) IN GENERAL.—The annual premium

under subsection (a) for any plan year shallbe payable in 12 equal monthly installments,due on the twenty-fifth day of each calendarmonth in the plan year. In the case of theplan year beginning February 1, 1993, the an-nual premium under subsection (a) shall beadded to such premium for the plan year be-ginning October 1, 1993.

‘‘(2) DEDUCTIBILITY.—Any premium re-quired by this section shall be deductiblewithout regard to any limitation on deduct-ibility based on the prefunding of health ben-efits.

‘‘(h) INFORMATION.—The trustees of theCombined Fund shall, not later than 60 daysafter the enactment date, furnish to the Sec-retary of Health and Human Services infor-mation as to the benefits and covered bene-ficiaries under the fund, and such other in-formation as the Secretary may require tocompute any premium under this section.

‘‘(i) TRANSITION RULES.—‘‘(1) 1988 AGREEMENT OPERATORS.—‘‘(A) 1ST YEAR COSTS.—During the plan year

of the Combined Fund beginning February 1,1993, the 1988 agreement operators shallmake contributions to the Combined Fund inamounts necessary to pay benefits and ad-ministrative costs of the Combined Fund in-curred during such year, reduced by theamount transferred to the Combined Fundunder section 9705(a) on February 1, 1993.

‘‘(B) DEFICITS FROM MERGED PLANS.—Dur-ing the period beginning February 1, 1993,and ending September 30, 1994, the 1988agreement operators shall make contribu-tions to the Combined Fund as are necessaryto pay off the expenses accrued (and remain-ing unpaid) by the 1950 UMWA Benefit Planand the 1974 UMWA Benefit Plan as of Feb-ruary 1, 1993, reduced by the assets of suchplans as of such date.

‘‘(C) FAILURE.—If any 1988 agreement oper-ator fails to meet any obligation under thisparagraph, any contributions of such opera-tor to the Combined Fund or any other plandescribed in section 404(c) shall not be de-ductible under this title until such time asthe failure is corrected.

‘‘(D) PREMIUM REDUCTIONS.—‘‘(i) 1ST YEAR PAYMENTS.—In the case of a

1988 agreement operator making contribu-tions under subparagraph (A), the premiumof such operator under subsection (a) shall be

reduced by the amount paid under subpara-graph (A) by such operator for the plan yearbeginning February 1, 1993.

‘‘(ii) DEFICIT PAYMENTS.—In the case a 1988agreement operator making contributionsunder subparagraph (B), the premium of suchoperator under subsection (a) shall be re-duced by the amounts which are paid to theCombined Fund by reason of claims arisingin connection with the 1950 UMWA BenefitPlan and the 1974 UMWA Benefit Plan as ofFebruary 1, 1993, including claims based onthe ‘evergreen clause’ found in the languageof the 1950 UMWA Benefit Plan and the 1974UMWA Benefit Plan, and which are allocatedto such operator under subparagraph (E).

‘‘(iii) LIMITATION.—Clause (ii) shall notapply to the extent the amounts paid exceedthe contributions.

‘‘(iv) PLAN YEARS.—Premiums under sub-section (a) shall be reduced for the first planyear for which amounts described in clause(i) or (ii) are available and for any succeed-ing plan year until such amounts are ex-hausted.

‘‘(E) ALLOCATIONS OF CONTRIBUTIONS ANDREFUNDS.—Contributions under subpara-graphs (A) and (B), and premium reductionsunder subparagraph (D)(ii), shall be maderatably on the basis of aggregate contribu-tions made by such operators under the ap-plicable 1988 coal wage agreements as of Jan-uary 31, 1993.

‘‘(2) 1ST PLAN YEAR.—In the case of the planyear of the Combined Fund beginning Feb-ruary 1, 1993—

‘‘(A) the premiums under subsections (a)(1)and (a)(3) shall be 67 percent of such pre-miums without regard to this paragraph, and

‘‘(B) the premiums under subsection (a)shall be paid as provided in subsection (g).

‘‘(3) STARTUP COSTS.—The 1950 UMWA Ben-efit Plan and the 1974 UMWA Benefit Planshall pay the costs of the Combined Fund in-curred before February 1, 1993. For purposesof this section, such costs shall be treated asadministrative expenses incurred for theplan year beginning February 1, 1993.

‘‘SEC. 9705. TRANSFERS.

‘‘(a) TRANSFER OF ASSETS FROM 1950 UMWAPENSION PLAN.—

‘‘(1) IN GENERAL.—From the funds reservedunder paragraph (2), the board of trustees ofthe 1950 UMWA Pension Plan shall transferto the Combined Fund—

‘‘(A) $70,000,000 on February 1, 1993,‘‘(B) $70,000,000 on October 1, 1993, and‘‘(C) $70,000,000 on October 1, 1994.‘‘(2) RESERVATION.—Immediately upon the

enactment date, the board of trustees of the1950 UMWA Pension Plan shall segregate$210,000,000 from the general assets of theplan. Such funds shall be held in the planuntil disbursed pursuant to paragraph (1).Any interest on such funds shall be depositedinto the general assets of the 1950 UMWAPension Plan.

‘‘(3) USE OF FUNDS.—Amounts transferredto the Combined Fund under paragraph (1)shall—

‘‘(A) in the case of the transfer on Feb-ruary 1, 1993, be used to proportionately re-duce the premium of each assigned operatorunder section 9704(a) for the plan year of theFund beginning February 1, 1993, and

‘‘(B) in the case of any other such transfer,be used to proportionately reduce the unas-signed beneficiary premium under section9704(a)(3) and the death benefit premiumunder section 9704(a)(2) of each assigned op-erator for the plan year in which transferredand for any subsequent plan year in whichsuch funds remain available.

Such funds may not be used to pay anyamounts required to be paid by the 1988agreement operators under section9704(i)(1)(B).

‘‘(4) TAX TREATMENT; VALIDITY OF TRANS-FER.—

‘‘(A) NO DEDUCTION.—No deduction shall beallowed under this title with respect to anytransfer pursuant to paragraph (1), but suchtransfer shall not adversely affect the de-ductibility (under applicable provisions ofthis title) of contributions previously madeby employers, or amounts hereafter contrib-uted by employers, to the 1950 UMWA Pen-sion Plan, the 1950 UMWA Benefit Plan, the1974 UMWA Pension Plan, the 1974 UMWABenefit Plan, the 1992 UMWA Benefit Plan,or the Combined Fund.

‘‘(B) OTHER TAX PROVISIONS.—Any transferpursuant to paragraph (1)—

‘‘(i) shall not be treated as an employer re-version from a qualified plan for purposes ofsection 4980, and

‘‘(ii) shall not be includible in the gross in-come of any employer maintaining the 1950UMWA Pension Plan.

‘‘(5) TREATMENT OF TRANSFER.—Any trans-fer pursuant to paragraph (1) shall not bedeemed to violate, or to be prohibited by,any provision of law, or to cause the settlors,joint board of trustees, employers or any re-lated person to incur or be subject to liabil-ity, taxes, fines, or penalties of any kindwhatsoever.

‘‘(b) TRANSFERS FROM ABANDONED MINERECLAMATION FUND.—

‘‘(1) IN GENERAL.—The Combined Fundshall include any amount transferred to theFund under section 402(h) of the SurfaceMining Control and Reclamation Act of 1977(30 U.S.C. 1232(h)).

‘‘(2) USE OF FUNDS.—Any amount trans-ferred under paragraph (1) for any fiscal yearshall be used to proportionately reduce theunassigned beneficiary premium under sec-tion 9704(a)(3) of each assigned operator forthe plan year in which transferred.

‘‘SEC. 9706. ASSIGNMENT OF ELIGIBLE BENE-FICIARIES.

‘‘(a) IN GENERAL.—For purposes of thischapter, the Secretary of Health and HumanServices shall, before October 1, 1993, assigneach coal industry retiree who is an eligiblebeneficiary to a signatory operator which (orany related person with respect to which) re-mains in business in the following order:

‘‘(1) First, to the signatory operatorwhich—

‘‘(A) was a signatory to the 1978 coal wageagreement or any subsequent coal wageagreement, and

‘‘(B) was the most recent signatory opera-tor to employ the coal industry retiree inthe coal industry for at least 2 years.

‘‘(2) Second, if the retiree is not assignedunder paragraph (1), to the signatory opera-tor which—

‘‘(A) was a signatory to the 1978 coal wageagreement or any subsequent coal wageagreement, and

‘‘(B) was the most recent signatory opera-tor to employ the coal industry retiree inthe coal industry.

‘‘(3) Third, if the retiree is not assignedunder paragraph (1) or (2), to the signatoryoperator which employed the coal industryretiree in the coal industry for a longer pe-riod of time than any other signatory opera-tor prior to the effective date of the 1978 coalwage agreement.

‘‘(b) RULES RELATING TO EMPLOYMENT ANDREASSIGNMENT UPON PURCHASE.—For pur-poses of subsection (a)—

‘‘(1) AGGREGATION RULES.—‘‘(A) RELATED PERSON.—Any employment

of a coal industry retiree in the coal indus-try by a signatory operator shall be treatedas employment by any related persons tosuch operator.

‘‘(B) CERTAIN EMPLOYMENT DISREGARDED.—Employment with—

JOURNAL OF THE

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OCTOBER 5T121.25‘‘(i) a person which is (and all related per-

sons with respect to which are) no longer inbusiness, or

‘‘(ii) a person during a period during whichsuch person was not a signatory to a coalwage agreement,

shall not be taken into account.‘‘(2) REASSIGNMENT UPON PURCHASE.—If a

person becomes a successor of an assignedoperator after the enactment date, the as-signed operator may transfer the assignmentof an eligible beneficiary under subsection(a) to such successor, and such successorshall be treated as the assigned operatorwith respect to such eligible beneficiary forpurposes of this chapter. Notwithstandingthe preceding sentence, the assigned opera-tor transferring such assignment (and anyrelated person) shall remain the guarantor ofthe benefits provided to the eligible bene-ficiary under this chapter. An assigned oper-ator shall notify the trustees of the Com-bined Fund of any transfer described in thisparagraph.

‘‘(c) IDENTIFICATION OF ELIGIBLE BENE-FICIARIES.—The 1950 UMWA Benefit Plan andthe 1974 UMWA Benefit Plan shall, by thelater of October 1, 1992, or the twentieth dayafter the enactment date, provide to the Sec-retary of Health and Human Services a listof the names and social security accountnumbers of each eligible beneficiary, includ-ing each deceased eligible beneficiary if anyother individual is an eligible beneficiary byreason of a relationship to such deceased eli-gible beneficiary. In addition, the plans shallprovide, where ascertainable from planrecords, the names of all persons described insubsection (a) with respect to any eligiblebeneficiary or deceased eligible beneficiary.

‘‘(d) COOPERATION BY OTHER AGENCIES ANDPERSONS.—

‘‘(1) COOPERATION.—The head of any depart-ment, agency, or instrumentality of theUnited States shall cooperate fully andpromptly with the Secretary of Health andHuman Services in providing informationwhich will enable the Secretary to carry outhis responsibilities under this section.

‘‘(2) PROVIDING OF INFORMATION.—‘‘(A) IN GENERAL.—Notwithstanding any

other provision of law, including section6103, the head of any other agency, depart-ment, or instrumentality shall, upon receiv-ing a written request from the Secretary ofHealth and Human Services in connectionwith this section, cause a search to be madeof the files and records maintained by suchagency, department, or instrumentality witha view to determining whether the informa-tion requested is contained in such files orrecords. The Secretary shall be advisedwhether the search disclosed the informationrequested, and, if so, such information shallbe promptly transmitted to the Secretary,except that if the disclosure of any requestedinformation would contravene national pol-icy or security interests of the UnitedStates, or the confidentiality of census data,the information shall not be transmitted andthe Secretary shall be so advised.

‘‘(B) LIMITATION.—Any information pro-vided under subparagraph (A) shall be lim-ited to information necessary for the Sec-retary to carry out his duties under this sec-tion.

‘‘(3) TRUSTEES.—The trustees of the Com-bined Fund, the 1950 UMWA Benefit Plan,the 1974 UMWA Benefit Plan, the 1950 UMWAPension Plan, and the 1974 UMWA PensionPlan shall fully and promptly cooperate withthe Secretary in furnishing, or assisting theSecretary to obtain, any information theSecretary needs to carry out the Secretary’sresponsibilities under this section.

‘‘(e) NOTICE BY SECRETARY.—‘‘(1) NOTICE TO FUND.—The Secretary of

Health and Human Services shall advise the

trustees of the Combined Fund of the nameof each person identified under this sectionas an assigned operator, and the names andsocial security account numbers of eligiblebeneficiaries with respect to whom he isidentified.

‘‘(2) OTHER NOTICE.—The Secretary ofHealth and Human Services shall notify eachassigned operator of the names and social se-curity account numbers of eligible bene-ficiaries who have been assigned to such per-son under this section and a brief summaryof the facts related to the basis for such as-signments.

‘‘(f) RECONSIDERATION BY SECRETARY.—‘‘(1) IN GENERAL.—Any assigned operator

receiving a notice under subsection (e)(2)with respect to an eligible beneficiary may,within 30 days of receipt of such notice, re-quest from the Secretary of Health andHuman Services detailed information as tothe work history of the beneficiary and thebasis of the assignment.

‘‘(2) REVIEW.—An assigned operator may,within 30 days of receipt of the informationunder paragraph (1), request review of the as-signment. The Secretary of Health andHuman Services shall conduct such review ifthe Secretary finds the operator providedevidence with the request constituting aprima facie case of error.

‘‘(3) RESULTS OF REVIEW.—‘‘(A) ERROR.—If the Secretary of Health

and Human Services determines under a re-view under paragraph (2) that an assignmentwas in error—

‘‘(i) the Secretary shall notify the assignedoperator and the trustees of the CombinedFund and the trustees shall reduce the pre-miums of the operator under section 9704 by(or if there are no such premiums, repay) allpremiums paid under section 9704 with re-spect to the eligible beneficiary, and

‘‘(ii) the Secretary shall review the bene-ficiary’s record for reassignment under sub-section (a).

‘‘(B) NO ERROR.—If the Secretary of Healthand Human Services determines under a re-view conducted under paragraph (2) that noerror occurred, the Secretary shall notifythe assigned operator.

‘‘(4) DETERMINATIONS.—Any determinationby the Secretary of Health and Human Serv-ices under paragraph (2) or (3) shall be final.

‘‘(5) PAYMENT PENDING REVIEW.—An as-signed operator shall pay the premiumsunder section 9704 pending review by the Sec-retary of Health and Human Services or by acourt under this subsection.

‘‘(6) PRIVATE ACTIONS.—Nothing in this sec-tion shall preclude the right of any person tobring a separate civil action against anotherperson for responsibility for assigned pre-miums, notwithstanding any prior decisionby the Secretary.

‘‘(g) CONFIDENTIALITY OF INFORMATION.—Any person to which information is providedby the Secretary of Health and Human Serv-ices under this section shall not disclosesuch information except in any proceedingsrelated to this section. Any civil or criminalpenalty which is applicable to an unauthor-ized disclosure under section 6103 shall applyto any unauthorized disclosure under thissection.

‘‘PART III—ENFORCEMENT‘‘Sec. 9707. Failure to pay premium.‘‘SEC. 9707. FAILURE TO PAY PREMIUM.

‘‘(a) GENERAL RULE.—There is hereby im-posed a penalty on the failure of any as-signed operator to pay any premium requiredto be paid under section 9704 with respect toany eligible beneficiary.

‘‘(b) AMOUNT OF PENALTY.—The amount ofthe penalty imposed by subsection (a) on anyfailure with respect to any eligible bene-ficiary shall be $100 per day in the non-compliance period with respect to any suchfailure.

‘‘(c) NONCOMPLIANCE PERIOD.—For purposesof this section, the term ‘noncompliance pe-riod’ means, with respect to any failure topay any premium or installment thereof, theperiod—

‘‘(1) beginning on the due date for such pre-mium or installment, and

‘‘(2) ending on the date of payment of suchpremium or installment.

‘‘(d) LIMITATIONS ON AMOUNT OF PENALTY.—‘‘(1) IN GENERAL.—No penalty shall be im-

posed by subsection (a) on any failure duringany period for which it is established to thesatisfaction of the Secretary of the Treasurythat none of the persons responsible for suchfailure knew, or exercising reasonable dili-gence, would have known, that such failureexisted.

‘‘(2) CORRECTIONS.—No penalty shall be im-posed by subsection (a) on any failure if—

‘‘(A) such failure was due to reasonablecause and not to willful neglect, and

‘‘(B) such failure is corrected during the 30-day period beginning on the 1st date thatany of the persons responsible for such fail-ure knew, or exercising reasonable diligencewould have known, that such failure existed.

‘‘(3) WAIVER.—In the case of a failure thatis due to reasonable cause and not to willfulneglect, the Secretary of the Treasury maywaive all or part of the penalty imposed bysubsection (a) for failures to the extent thatthe Secretary determines, in his sole discre-tion, that the payment of such penaltywould be excessive relative to the failure in-volved.

‘‘(e) LIABILITY FOR PENALTY.—The personfailing to meet the requirements of section9704 shall be liable for the penalty imposedby subsection (a).

‘‘(f) TREATMENT.—For purposes of thistitle, the penalty imposed by this sectionshall be treated in the same manner as thetax imposed by section 4980B.

‘‘PART IV—OTHER PROVISIONS‘‘Sec. 9708. Effect on pending claims or obli-

gations.‘‘SEC. 9708. EFFECT ON PENDING CLAIMS OR OB-

LIGATIONS.‘‘All liability for contributions to the Com-

bined Fund that arises on and after February1, 1993, shall be determined exclusively underthis chapter, including all liability for con-tributions to the 1950 UMWA Benefit Planand the 1974 UMWA Benefit Plan for coalproduction on and after February 1, 1993.However, nothing in this chapter is intendedto have any effect on any claims or obliga-tions arising in connection with the 1950UMWA Benefit Plan and the 1974 UMWABenefit Plan as of February 1, 1993, includingclaims or obligations based on the ‘ever-green’ clause found in the language of the1950 UMWA Benefit Plan and the 1974 UMWABenefit Plan. This chapter shall not be con-strued to affect any rights of subrogation ofany 1988 agreement operator with respect tocontributions due to the 1950 UMWA BenefitPlan or the 1974 UMWA Benefit Plan as ofFebruary 1, 1993.

‘‘Subchapter C—Health Benefits of CertainMiners

‘‘Part I—Individual employer plans‘‘Part II—1992 UMWA benefit plan‘‘PART I—INDIVIDUAL EMPLOYER PLANS

‘‘Sec. 9711. Continued obligations of individ-ual employer plans.

‘‘SEC. 9711. CONTINUED OBLIGATIONS OF INDI-VIDUAL EMPLOYER PLANS.

‘‘(a) COVERAGE OF CURRENT RECIPIENTS.—The last signatory operator of any individualwho, as of February 1, 1993, is receiving re-tiree health benefits from an individual em-ployer plan maintained pursuant to a 1978 orsubsequent coal wage agreement shall con-tinue to provide health benefits coverage tosuch individual and the individual’s eligible


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1992 T121.25beneficiaries which is substantially the sameas (and subject to all the limitations of) thecoverage provided by such plan as of January1, 1992. Such coverage shall continue to beprovided for as long as the last signatory op-erator (and any related person) remains inbusiness.

‘‘(b) COVERAGE OF ELIGIBLE RECIPIENTS.—‘‘(1) IN GENERAL.—The last signatory opera-

tor of any individual who, as of February 1,1993, is not receiving retiree health benefitsunder the individual employer plan main-tained by the last signatory operator pursu-ant to a 1978 or subsequent coal wage agree-ment, but has met the age and service re-quirements for eligibility to receive benefitsunder such plan as of such date, shall, atsuch time as such individual becomes eligi-ble to receive benefits under such plan, pro-vide health benefits coverage to such indi-vidual and the individual’s eligible bene-ficiaries which is described in paragraph (2).This paragraph shall not apply to any indi-vidual who retired from the coal industryafter September 30, 1994, or any eligible bene-ficiary of such individual.

‘‘(2) COVERAGE.—Subject to the provisionsof subsection (d), health benefits coverage isdescribed in this paragraph if it is substan-tially the same as (and subject to all the lim-itations of) the coverage provided by the in-dividual employer plan as of January 1, 1992.Such coverage shall continue for as long asthe last signatory operator (and any relatedperson) remains in business.

‘‘(c) JOINT AND SEVERAL LIABILITY OF RE-LATED PERSONS.—Each related person of alast signatory operator to which subsection(a) or (b) applies shall be jointly and sever-ally liable with the last signatory operatorfor the provision of health care coverage de-scribed in subsection (a) or (b).

‘‘(d) MANAGED CARE AND COST CONTAIN-MENT.—The last signatory operator shall notbe treated as failing to meet the require-ments of subsection (a) or (b) if benefits areprovided to eligible beneficiaries under man-aged care and cost containment rules andprocedures described in section 9712(c) oragreed to by the last signatory operator andthe United Mine Workers of America.

‘‘(e) TREATMENT OF NONCOVERED EMPLOY-EES.—The existence, level, and duration ofbenefits provided to former employees of alast signatory operator (and their eligiblebeneficiaries) who are not otherwise coveredby this chapter and who are (or were) cov-ered by a coal wage agreement shall only bedetermined by, and shall be subject to, col-lective bargaining, lawful unilateral action,or other applicable law.

‘‘(f) ELIGIBLE BENEFICIARY.—For purposesof this section, the term ‘eligible bene-ficiary’ means any individual who is eligiblefor health benefits under a plan described insubsection (a) or (b) by reason of the individ-ual’s relationship with the retiree describedin such subsection (or to an individual who,based on service and employment history atthe time of death, would have been so de-scribed but for such death).

‘‘(g) RULES APPLICABLE TO THIS PART ANDPART II.—For purposes of this part and partII—

‘‘(1) SUCCESSOR.—The term ‘last signatoryoperator’ shall include a successor in inter-est of such operator.

‘‘(2) REASSIGNMENT UPON PURCHASE.—If aperson becomes a successor of a last signa-tory operator after the enactment date, thelast signatory operator may transfer any li-ability of such operator under this chapterwith respect to an eligible beneficiary tosuch successor, and such successor shall betreated as the last signatory operator withrespect to such eligible beneficiary for pur-poses of this chapter. Notwithstanding thepreceding sentence, the last signatory opera-tor transferring such assignment (and any

related person) shall remain the guarantor ofthe benefits provided to the eligible bene-ficiary under this chapter. A last signatoryoperator shall notify the trustees of the 1992UMWA Benefit Plan of any transfer de-scribed in this paragraph.

‘‘PART II—1992 UMWA BENEFIT PLAN‘‘Sec. 9712. Establishment and coverage of

1992 UMWA Benefit Plan.‘‘SEC. 9712. ESTABLISHMENT AND COVERAGE OF

1992 UMWA BENEFIT PLAN.‘‘(a) CREATION OF PLAN.—‘‘(1) IN GENERAL.—As soon as practicable

after the enactment date, the settlors shallcreate a separate private plan which shall beknown as the United Mine Workers of Amer-ica 1992 Benefit Plan. For purposes of thistitle, the 1992 UMWA Benefit Plan shall betreated as an organization exempt from tax-ation under section 501(a). The settlors shallbe responsible for designing the structure,administration and terms of the 1992 UMWABenefit Plan, and for appointment and re-moval of the members of the board of trust-ees. The board of trustees shall initially con-sist of five members and shall thereafter bethe number set by the settlors.

‘‘(2) TREATMENT OF PLAN.—The 1992 UMWABenefit Plan shall be—

‘‘(A) a plan described in section 302(c)(5) ofthe Labor Management Relations Act, 1947(29 U.S.C. 186(c)(5)),

‘‘(B) an employee welfare benefit planwithin the meaning of section 3(1) of the Em-ployee Retirement Income Security Act of1974 (29 U.S.C. 1002(1)), and

‘‘(C) a multiemployer plan within themeaning of section 3(37) of such Act (29U.S.C. 1002(37)).

‘‘(b) COVERAGE REQUIREMENT.—‘‘(1) IN GENERAL.—The 1992 UMWA Benefit

Plan shall only provide health benefits cov-erage to any eligible beneficiary who is noteligible for benefits under the CombinedFund and shall not provide such coverage toany other individual.

‘‘(2) ELIGIBLE BENEFICIARY.—For purposesof this section, the term ‘eligible bene-ficiary’ means an individual who—

‘‘(A) but for the enactment of this chapter,would be eligible to receive benefits from the1950 UMWA Benefit Plan or the 1974 UMWABenefit Plan, based upon age and serviceearned as of February 1, 1993; or

‘‘(B) with respect to whom coverage is re-quired to be provided under section 9711, butwho does not receive such coverage from theapplicable last signatory operator or any re-lated person,

and any individual who is eligible for bene-fits by reason of a relationship to an individ-ual described in subparagraph (A) or (B). Inno event shall the 1992 UMWA Benefit Planprovide health benefits coverage to any eligi-ble beneficiary who is a coal industry retireewho retired from the coal industry after Sep-tember 30, 1994, or any beneficiary of such in-dividual.

‘‘(c) HEALTH BENEFITS.—‘‘(1) IN GENERAL.—The 1992 UMWA Benefit

Plan shall provide health care benefits cov-erage to each eligible beneficiary which issubstantially the same as (and subject to allthe limitations of) coverage provided underthe 1950 UMWA Benefit Plan and the 1974UMWA Benefit Plan as of January 1, 1992.

‘‘(2) MANAGED CARE.—The 1992 UMWA Ben-efit Plan shall develop managed care andcost containment rules which shall be appli-cable to the payment of benefits under thissubsection. Application of such rules shallnot cause the plan to be treated as failing tomeet the requirements of this subsection.Such rules shall preserve freedom of choicewhile reinforcing managed care network useby allowing a point of service decision as towhether a network medical provider will beused. Major elements of such rules may in-

clude, but are not limited to, elements de-scribed in paragraph (3).

‘‘(3) MAJOR ELEMENTS OF RULES.—Elementsdescribed in this paragraph are—

‘‘(A) implementing formulary for drugs andsubjecting the prescription program to a rig-orous review of appropriate use,

‘‘(B) obtaining a unit price discount in ex-change for patient volume and preferred pro-vider status with the amount of the poten-tial discount varying by geographic region,

‘‘(C) limiting benefit payments to physi-cians to the allowable charge under titleXVIII of the Social Security Act, while pro-tecting beneficiaries from balance billing byproviders,

‘‘(D) utilizing, in the claims payment func-tion ‘appropriateness of service’ protocolsunder title XVIII of the Social Security Actif more stringent,

‘‘(E) creating mandatory utilization review(UR) procedures, but placing the responsibil-ity to follow such procedures on the physi-cian or hospital, not the beneficiaries,

‘‘(F) selecting the most efficient physi-cians and state-of-the-art utilization man-agement techniques, including ambulatorycare techniques, for medical services deliv-ered by the managed care network, and

‘‘(G) utilizing a managed care network pro-vider system, as practiced in the health careindustry, at the time medical services areneeded (point-of-service) in order to receivemaximum benefits available under this sub-section.

‘‘(4) LAST SIGNATORY OPERATORS.—Theboard of trustees of the 1992 UMWA BenefitPlan shall permit any last signatory opera-tor required to maintain an individual em-ployer plan under section 9711 to utilize themanaged care and cost containment rulesand programs developed under this sub-section if the operator elects to do so.

‘‘(5) STANDARDS OF QUALITY.—Any managedcare system or cost containment adopted bythe board of trustees of the 1992 UMWA Ben-efit Plan or by a last signatory operator maynot be implemented unless it is approved by,and meets the standards of quality adoptedby, a medical peer review panel, which hasbeen established—

‘‘(A) by the settlors, or‘‘(B) by the United Mine Workers of Amer-

ica and a last signatory operator or group ofoperators.

Standards of quality shall include accessibil-ity to medical care, taking into account thataccessibility requirements may differ de-pending on the nature of the medical need.

‘‘(d) GUARANTEE OF BENEFITS.—‘‘(1) IN GENERAL.—All 1988 last signatory

operators shall be responsible for financingthe benefits described in subsection (c), inaccordance with contribution requirementsestablished in the 1992 UMWA Benefit Plan.Such contribution requirements, which shallbe applied uniformly to each 1988 last signa-tory operator, on the basis of the number ofeligible and potentially eligible beneficiariesattributable to each operator, shall include:

‘‘(A) the payment of an annual prefundingpremium for all eligible and potentially eli-gible beneficiaries attributable to a 1988 lastsignatory operator,

‘‘(B) the payment of a monthly per bene-ficiary premium by each 1988 last signatoryoperator for each eligible beneficiary of suchoperator who is described in subsection (b)(2)and who is receiving benefits under the 1992UMWA Benefit Plan, and

‘‘(C) the provision of security (in the formof a bond, letter of credit or cash escrow) inan amount equal to a portion of the pro-jected future cost to the 1992 UMWA BenefitPlan of providing health benefits for eligibleand potentially eligible beneficiaries attrib-utable to the 1988 last signatory operator. Ifa 1988 last signatory operator is unable to

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OCTOBER 5T121.25provide the security required, the 1992UMWA Benefit Plan shall require the opera-tor to pay an annual prefunding premiumthat is greater than the premium otherwiseapplicable.

‘‘(2) ADJUSTMENTS.—The 1992 UMWA Bene-fit Plan shall provide for—

‘‘(A) annual adjustments of the per bene-ficiary premium to cover changes in the costof providing benefits to eligible bene-ficiaries, and

‘‘(B) adjustments as necessary to the an-nual prefunding premium to reflect changesin the cost of providing benefits to eligiblebeneficiaries for whom per beneficiary pre-miums are not paid.

‘‘(3) ADDITIONAL LIABILITY.—Any last signa-tory operator who is not a 1988 last signatoryoperator shall pay the monthly per bene-ficiary premium under paragraph (1)(B) foreach eligible beneficiary described in suchparagraph attributable to that operator.

‘‘(4) JOINT AND SEVERAL LIABILITY.—A 1988last signatory operator or last signatory op-erator described in paragraph (3), and any re-lated person to any such operator, shall bejointly and severally liable with such opera-tor for any amount required to be paid bysuch operator under this section.

‘‘(5) DEDUCTIBILITY.—Any premium re-quired by this section shall be deductiblewithout regard to any limitation on deduct-ibility based on the prefunding of health ben-efits.

‘‘(6) 1988 LAST SIGNATORY OPERATOR.—Forpurposes of this section, the term ‘1988 lastsignatory operator’ means a last signatoryoperator which is a 1988 agreement operator.

‘‘Subchapter D—Other Provisions‘‘Sec. 9721. Civil enforcement.‘‘Sec. 9722. Sham transactions.‘‘SEC. 9721. CIVIL ENFORCEMENT.

‘‘The provisions of section 4301 of the Em-ployee Retirement Income Security Act of1974 shall apply to any claim arising out ofan obligation to pay any amount required tobe paid by this chapter in the same manneras any claim arising out of an obligation topay withdrawal liability under subtitle E oftitle IV of such Act. For purposes of the pre-ceding sentence, a signatory operator and re-lated persons shall be treated in the samemanner as employers.‘‘SEC. 9722. SHAM TRANSACTIONS.

‘‘If a principal purpose of any transactionis to evade or avoid liability under this chap-ter, this chapter shall be applied (and suchliability shall be imposed) without regard tosuch transaction.’’

(b) AMENDMENTS TO SURFACE MINING ACT.—(1) EXTENSION OF FEE PROGRAM.—Section

402(b) of the Surface Mining Control and Rec-lamation Act of 1977 (30 U.S.C. 1232(b)) isamended by striking ‘‘September 30, 1995’’and inserting ‘‘September 30, 2004’’.

(2) TRANSFER TO FUND.—Section 402 of suchAct (30 U.S.C. 1232) is amended by adding atthe end the following new subsection:

‘‘(h) TRANSFER OF FUNDS TO COMBINEDFUND.—(1) In the case of any fiscal year be-ginning on or after October 1, 1995, with re-spect to which fees are required to be paidunder this section, the Secretary shall, as ofthe beginning of such fiscal year and beforeany allocation under subsection (g), makethe transfer provided in paragraph (2).

‘‘(2) The Secretary shall transfer from thefund to the United Mine Workers of AmericaCombined Benefit Fund established undersection 9702 of the Internal Revenue Code of1986 for any fiscal year an amount equal tothe sum of—

‘‘(A) the amount of the interest which theSecretary estimates will be earned and paidto the Fund during the fiscal year, plus

‘‘(B) the amount by which the amount de-scribed in subparagraph (A) is less than$70,000,000.

‘‘(3)(A) The aggregate amount which maybe transferred under paragraph (2) for anyfiscal year shall not exceed the amount ofexpenditures which the trustees of the Com-bined Fund estimate will be debited againstthe unassigned beneficiaries premium ac-count under section 9704(e) of the InternalRevenue Code of 1986 for the fiscal year ofthe Combined Fund in which the transfer ismade.

‘‘(B) The aggregate amount which may betransferred under paragraph (2)(B) for all fis-cal years shall not exceed an amount equiva-lent to all interest earned and paid to thefund after September 30, 1992, and before Oc-tober 1, 1995.

‘‘(4) If, for any fiscal year, the amounttransferred is more or less than the amountrequired to be transferred, the Secretaryshall appropriately adjust the amount trans-ferred for the next fiscal year.’’

(3) CONFORMING AMENDMENTS.—(A) Section401(c) of such Act (30 U.S.C. 1231(c)) is amend-ed by striking ‘‘and’’ at the end of paragraph(11), by redesignating paragraph (12) as para-graph (13), and by adding after paragraph (11)the following new paragraph:

‘‘(12) for the purpose described in section402(h); and’’.

(B) Section 402(g)(1) of such Act (30 U.S.C.1232(g)) is amended by striking ‘‘Moneys’’and inserting ‘‘Except as provided in sub-section (h), moneys’’.

TITLE XX—GENERAL PROVISIONS;REDUCTION OF OIL VULNERABILITY

SEC. 2001. GOALS.It is the goal of the United States in carry-

ing out energy supply and energy conserva-tion research and development—

(1) to strengthen national energy securityby reducing dependence on imported oil;

(2) to increase the efficiency of the econ-omy by meeting future needs for energyservices at the lowest total cost to the Na-tion, including environmental costs, givingcomparable consideration to technologiesthat enhance energy supply and technologiesthat improve the efficiency of energy enduses;

(3) to reduce the air, water, and other envi-ronmental impacts (including emissions ofgreenhouse gases) of energy production, dis-tribution, transportation, and utilization,through the development of an environ-mentally sustainable energy system;

(4) to maintain the technological competi-tiveness of the United States and stimulateeconomic growth through the developmentof advanced materials and technologies;

(5) to foster international cooperation bydeveloping international markets for domes-tically produced sustainable energy tech-nologies, and by transferring environ-mentally sound, advanced energy systemsand technologies to developing countries topromote sustainable development;

(6) to consider the comparative environ-mental and public health impacts of the en-ergy to be produced or saved by the specificactivities;

(7) to consider the obstacles inherent inprivate industry’s development of new en-ergy technologies and steps necessary for es-tablishing or maintaining technologicalleadership in the area of energy and energyefficiency resource technologies; and

(8) to consider the contribution of a givenactivity to fundamental scientific knowl-edge.Subtitle A—Oil and Gas Supply EnhancementSEC. 2011. ENHANCED OIL RECOVERY.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on technologies to increase therecoverability of domestic oil resources to—

(1) improve reservoir characterization;

(2) improve analysis and field verification;(3) field test and demonstrate enhanced oil

recovery processes, including advanced proc-esses, in reservoirs the Secretary considersto be of high priority, ranked primarily onthe basis of oil recovery potential and risk ofabandonment;

(4) transfer proven recovery technologiesto producers and operators of wells, includ-ing stripper wells, that would otherwise belikely to be abandoned in the near term dueto declining production;

(5) improve enhanced oil recovery processtechnology for more economic and efficientoil production;

(6) identify and develop new recovery tech-nologies;

(7) study reservoir properties and how theyaffect oil recovery from porous media;

(8) improve techniques for meeting envi-ronmental requirements;

(9) improve data bases of reservoir and en-vironmental conditions; and

(10) lower lifting costs on stripper wellsby utilizing advanced renewable energy tech-nologies such as small wind turbines andothers.

(b) PROGRAM GOALS.—(1) NEAR-TERM PRIORITIES.—The near-term

priorities of the program include preservingaccess to high potential reservoirs, identify-ing available technologies that can extendthe lifetime of wells and of stripper wellproperty, and developing environmental fieldoperations for waste disposal and injectionpractices.

(2) MID-TERM PRIORITIES.—The mid-termpriorities of the program include developingand testing identified but unproven tech-nologies, and transferring those technologiesfor widespread use.

(3) LONG-TERM PRIORITIES.—The long-termpriorities of the program include developingadvanced techniques to recover oil not re-coverable by other techniques.

(c) ACCELERATED PROGRAM PLAN.—Within180 days after the date of enactment of thisAct, the Secretary shall prepare and submitto the Congress a plan for carrying out underthis section the accelerated field testing oftechnologies to achieve the priorities statedin subsection (b). In preparing the plan, theSecretary shall consult with appropriate rep-resentatives of industry, institutions ofhigher education, Federal agencies, includ-ing national laboratories, and professionaland technical societies, and with the Advi-sory Board established under section 2302.

(d) PROPOSALS.—Within 1 year after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.

(e) CONSULTATION.—In carrying out theprovisions of this section, the Secretaryshall consult representatives of the oil andgas industry with respect to innovative re-search and development proposals to im-prove oil and gas recovery and shall considerrelevant technical data from industry andother research and information centers andinstitutes.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section,including advanced extraction and processtechnology, $57,250,000 for fiscal year 1993 and$70,000,000 for fiscal year 1994.SEC. 2012. OIL SHALE.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on oil shale extraction and conversion, in-cluding research and development on botheastern and western shales, as provided inthis section.

(b) PROGRAM GOALS.—The goals of the pro-gram established under this section in-clude—


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1992 T121.25(1) supporting the development of economi-

cally competitive and environmentally ac-ceptable technologies to produce domesticsupplies of liquid fuels from oil shale;

(2) increasing knowledge of environ-mentally acceptable oil shale waste disposaltechnologies and practices;

(3) increasing knowledge of the chemistryand kinetics of oil shale retorting;

(4) increasing understanding of engineeringissues concerning the design and scale-up ofoil shale extraction and conversion tech-nologies;

(5) improving techniques for oil shale min-ing systems; and

(6) providing for cooperation with univer-sities and other private sector entities.

(c) EASTERN OIL SHALE PROGRAM.—(1) Aspart of the program authorized by this sec-tion, the Secretary shall carry out a pro-gram on oil shale that includes applied re-search, in cooperation with universities andthe private sector, on eastern oil shale thatmay have the potential to decrease UnitedStates dependence on energy imports.

(2) As part of the program authorized bythis subsection, the Secretary shall considerthe potential benefits of including in thatprogram applied research carried out in co-operation with universities and other privatesector entities that are, as of the date of en-actment of this Act, engaged in research oneastern oil shale retorting and associatedprocesses.

(3) The program carried out under this sub-section shall be cost-shared with universitiesand the private sector to the maximum ex-tent possible.

(d) WESTERN OIL SHALE PROGRAM.—As partof the program authorized by this section,the Secretary shall carry out a program onextracting oil from western oil shales thatincludes, if appropriate, establishment andutilization of at least one field testing centerfor the purpose of testing, evaluating, anddeveloping improvements in oil shale tech-nology at the field test level. In establishingsuch a center, the Secretary shall considersites with existing oil shale mining and proc-essing infrastructure and facilities. Sixtydays prior to establishing any such fieldtesting center, the Secretary shall submit areport to Congress on the center to be estab-lished.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$5,250,000 for fiscal year 1993 and $6,000,000 forfiscal year 1994.SEC. 2013. NATURAL GAS SUPPLY.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with section 3001 and 3002 of this Act, toincrease the recoverable natural gas resourcebase including, but not limited to—

(1) more intensive recovery of natural gasfrom discovered conventional resources;

(2) the extraction of natural gas from tightgas sands and devonian shales or other un-conventional sources;

(3) surface gasification of coal; and(4) recovery of methane from biofuels in-

cluding municipal solid waste.(b) PROPOSALS.—Within 1 year after the

date of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.

(c) COFIRING OF NATURAL GAS AND COAL.—(1) PROGRAM.—The Secretary shall estab-

lish and carry out a 5-year program, in ac-cordance with sections 3001 and 3002 of thisAct, on cofiring natural gas with coal in util-ity and large industrial boilers in order todetermine optimal natural gas injection lev-els for both environmental and operationalbenefits.

(2) FINANCIAL ASSISTANCE.—The Secretaryshall enter into agreements with, and pro-

vide financial assistance to, appropriate par-ties for application of cofiring technologiesto boilers to demonstrate this technology.

(3) REPORT TO CONGRESS.—The Secretaryshall, before December 31, 1995, submit to theCongress a report on the progress made incarrying out this subsection.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this sectionand sections 2014 and 2015, $29,745,000 for fis-cal year 1993 and $45,000,000 for fiscal year1994.SEC. 2014. NATURAL GAS END-USE TECH-

NOLOGIES.The Secretary shall carry out a 5-year pro-

gram, in accordance with sections 3001 and3002 of this Act, on new and advanced naturalgas utilization technologies including, butnot limited to—

(1) stationary source emissions control andefficiency improvements including combus-tion systems, industrial processes, cogenera-tion, and waste fuels; and

(2) natural gas storage including increaseddeliverability from existing gas storage fa-cilities and new capabilities for storage neardemand centers, and on-site storage at majorenergy consuming facilities.SEC. 2015. MIDCONTINENT ENERGY RESEARCH

CENTER.(a) FINDING.—Congress finds that petro-

leum resources in the midcontinent region ofthe United States are very large but arebeing prematurely abandoned.

(b) PURPOSES.—The purposes of this sectionare to—

(1) improve the efficiency of petroleum re-covery;

(2) increase ultimate petroleum recovery;and

(3) delay the abandonment of resources.(c) ESTABLISHMENT.—The Secretary may

establish the Midcontinent Energy ResearchCenter (referred to in this section as the‘‘Center’’) to—

(1) conduct research in petroleum geologyand engineering focused on improving the re-covery of petroleum from existing fields andestablished plays in the upper midcontinentregion of the United States; and

(2) ensure that the results of the researchdescribed in paragraph (1) are transferred tousers.

(d) RESEARCH.—(1) IN GENERAL.—In conducting research

under this section, the Center shall, to theextent practicable, cooperate with agenciesof the Federal Government, the States in themidcontinent region of the United States,and the affected industry.

(2) PROGRAMS.—Research programs con-ducted by the Center may include—

(A) data base development and transfer oftechnology;

(B) reservoir management;(C) reservoir characterization;(D) advanced recovery methods; and(E) development of new technology.

Subtitle B—Oil and Gas Demand Reductionand Substitution

SEC. 2021. GENERAL TRANSPORTATION.(a) PROGRAM DIRECTION.—The Secretary

shall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on cost effective technologies to reduce thedemand for oil in the transportation sectorfor all motor vehicles, including existing ve-hicles, through increased energy efficiencyand the use of alternative fuels. Such pro-gram shall include a broad range of techno-logical approaches, and shall include fielddemonstrations of sufficient scale and num-ber in operating environments to prove tech-nical and economic viability to meet thegoals stated in section 2001. Such programshall include the activities required undersections 2022 through 2027, and ongoing ac-

tivities of a similar nature at the Depart-ment of Energy.

(b) PROGRAM PLAN.—Within 180 daysafter the date of enactment of this Act, theSecretary shall prepare and submit to theCongress a 5-year program plan to guide ac-tivities under this subtitle. In preparing theprogram plan, the Secretary shall consultwith appropriate representatives of industry,utilities, institutions of higher education,Federal agencies, including national labora-tories, and professional and technical soci-eties.

(c) PROPOSALS.—Within 1 year after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.

(d) DEFINITION.—For purposes of this sub-title, the term ‘‘alternative fuels’’ includesnatural gas, liquefied petroleum gas, hydro-gen, fuels other than alcohol that are derivedfrom biological materials, and any fuel thecontent of which is at least 85 percent byvolume methanol, ethanol, or other alcohol.

(e) AUTHORIZATION OF APPROPRIATIONS.—(1)There are authorized to be appropriated tothe Secretary for carrying out this subtitle,including all transportation sector energyconservation research and development(other than activities under section 2025) andall transportation sector biofuels energy sys-tems under solar energy, $119,144,000 for fis-cal year 1993 and $160,000,000 for fiscal year1994.

(2) There are authorized to be appropriatedto the Secretary for carrying out section2025—

(A) $60,300,000 for fiscal year 1993;(B) $75,000,000 for fiscal year 1994;(C) $80,000,000 for fiscal year 1995;(D) $80,000,000 for fiscal year 1996;(E) $90,000,000 for fiscal year 1997; and(F) $100,000,000 for fiscal year 1998.

SEC. 2022. ADVANCED AUTOMOTIVE FUEL ECON-OMY.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a program, in accordance withsections 3001 and 3002 of this Act, to supple-ment ongoing research activities of a similarnature at the Department of Energy, to ac-celerate the near-term and mid-term devel-opment of advanced technologies to improvethe fuel economy of light-duty passenger ve-hicles powered by a piston engine, and hy-brid vehicles powered by a combination ofpiston engine and electric motor.

(b) PROGRAM GOAL.—The goal of the pro-gram established under subsection (a) shallbe to stimulate the development of emergingtechnologies with the potential to achievesignificant improvements in fuel economywhile reducing emissions of air pollutants.

(c) PROPOSALS.—Within 1 year after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section, making a special ef-fort to involve small businesses in the pro-gram.SEC. 2023. ALTERNATIVE FUEL VEHICLE PRO-

GRAM.(a) PROGRAM DIRECTION.—The Secretary

shall carry out a program, in accordancewith sections 3001 and 3002 of this Act, ontechniques related to improving natural gasand other alternative fuel vehicle tech-nology, including—

(1) fuel injection;(2) carburetion;(3) manifolding;(4) combustion;(5) power optimization;(6) efficiency;(7) lubricants and detergents;(8) engine durability;(9) ignition, including fuel additives to as-

sist ignition;(10) multifuel engines;(11) emissions control, including catalysts;

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OCTOBER 5T121.25(12) novel gas compression concepts;(13) advanced storage systems;(14) advanced gaseous fueling technologies;

and(15) the incorporation of advanced mate-

rials in these areas.(b) COOPERATIVE AGREEMENTS AND ASSIST-

ANCE.—The Secretary may enter into cooper-ative agreements with, and provide financialassistance to, public or private entities will-ing to provide 50 percent of the costs of aprogram to perform activities under sub-section (a).

(c) DEFINITIONS.—For purposes of this sec-tion—

(1) the term ‘‘alternative fuel vehicle’’means a motor vehicle that operates on al-ternative fuels; and

(2) the term ‘‘motor vehicle’’ includes anyautomobile, truck, bus, van, or other on-roador off-road motor vehicle, including a boat.SEC. 2024. BIOFUELS USER FACILITY.

(a) The Secretary shall establish a biofuelsuser facility to expedite industry adoption ofbiofuels technologies, including productionof alcohol fuels from biomass.

(b) The Secretary, through such univer-sities and colleges as the Secretary deter-mines are qualified, shall establish a pro-gram, in accordance with sections 3001 and3002 of this Act, with respect to the produc-tion and use of diesel fuels from vegetableoils or animal fats. The program shall inves-tigate—

(1) the economic feasibility of productionof oilseed crops for biofuels purposes; and

(2) the establishment of a mobile small-scale oilseed pressing and esterification unitand a stationary small-scale commercial oil-seed pressing and esterification unit.SEC. 2025. ELECTRIC MOTOR VEHICLES AND AS-

SOCIATED EQUIPMENT RESEARCHAND DEVELOPMENT.

(a) GENERAL.—The Secretary shall con-duct, pursuant to the Federal NonnuclearEnergy Research and Development Act of1974 (42 U.S.C. 5901–5920), a research and de-velopment program on electric motor vehi-cles and associated equipment. Such pro-gram shall be conducted in cooperation withthe electric utility industry, and automobileindustry, battery manufacturers, and suchother persons as the Secretary considers ap-propriate.

(b) COMPREHENSIVE PLAN.—(1) The Sec-retary shall prepare a comprehensive 5-yearprogram plan for carrying out the purposesof this section. Such comprehensive planshall be updated annually for a period of notless than 10 years after the date of enact-ment of this Act.

(2) The comprehensive plan under para-graph (1) shall be prepared in consultationwith the Administrator of the Environ-mental Protection Agency, the Secretary ofTransportation, the Secretary of Commerce,the heads of other appropriate Federal agen-cies, representatives of the electric utilityindustry, electric motor vehicle manufactur-ers, the United States automobile industry,and such other persons as the Secretary con-siders appropriate.

(3) The comprehensive plan shall include—(A) a prioritization of research areas criti-

cal to the commercialization of electricmotor vehicles, including advanced batterytechnology;

(B) the program elements, managementstructure, and activities, including programresponsibilities, of Federal agencies;

(C) the program strategies, including tech-nical milestones to be achieved toward spe-cific goals during each fiscal year of thecomprehensive plan for all major activitiesand projects;

(D) the estimated costs of individual pro-gram elements, including estimated costs foreach of the fiscal years of the comprehensive

plan for each of the participating Federalagencies;

(E) a description of the methods of tech-nology transfer;

(F) a proposal for participation by non-Federal entities in the implementation ofthe comprehensive plan; and

(G) such other information as the Sec-retary considers appropriate.

(4) Not later than 180 days after the date ofenactment of this Act, the Secretary shalltransmit the comprehensive plan to the Con-gress. Annual updates shall be submitted tothe Congress.

(c) COOPERATIVE AGREEMENTS.—The Sec-retary, consistent with the comprehensiveplan under subsection (b), may enter into co-operative agreements to conduct researchand development projects with industry insuch areas of technology development as—

(1) high efficiency electric power trains, in-cluding advanced motors, motor controllers,and hybrid power trains for electric motorvehicle range improvement;

(2) light-weight structures for electricmotor vehicle weight reduction;

(3) advanced batteries with high energydensity and power density, and improvedrange or recharging cycles for a given unitweight, for electric motor vehicle applica-tion;

(4) hybrid power trains incorporating anelectric motor and recyclable batterycharged by an onboard liquid fuel engine, de-signed to significantly improve fuel econo-mies while maintaining acceleration charac-teristics comparable to a conventionallyfueled vehicle;

(5) batteries and fuel cells for electric-hy-brid vehicle application;

(6) fuel cells and fuel cell systems for pri-mary electric motor vehicle power sources;and

(7) photovoltaics for use with electricmotor vehicles.

(d) SOLICITATION OF PROPOSALS.—(1) Withinone year after the date of enactment of thisAct, the Secretary shall solicit proposals forcooperative agreements for research and de-velopment under subsection (c).

(2) Thereafter, the Secretary may solicitadditional proposals for cooperative agree-ments under subsection (c) if, in the judg-ment of the Secretary, such cooperativeagreements could contribute to the develop-ment of electric motor vehicles and associ-ated equipment.

(e) COST-SHARING.—(1) The Secretary shallrequire at least 50 percent of the costs di-rectly and specifically related to any cooper-ative agreement under this section, otherthan a cooperative agreement under sub-section (j), to be from non-Federal sources.Such share may be in the form of cash, per-sonnel, services, equipment, and other re-sources.

(2) The Secretary may reduce the amountof costs required to be provided by non-Fed-eral sources under paragraph (1), if the Sec-retary determines that the reduction is nec-essary and appropriate—

(A) considering the technological risks in-volved in the project; and

(B) in order to meet the objectives of thissection.

(f) DEPLOYMENT.—(1) The Secretary shallconduct a program designed to accelerate de-ployment of advanced battery technologiesfor use with electric motor vehicles.

(2) In carrying out the program authorizedby this subsection, the Secretary shall—

(A) undertake an inventory and assessmentof advanced battery technologies and elec-tric motor vehicle technologies and the com-mercial capability of such technologies; and

(B) develop a Federal industry informationexchange program to improve the deploy-ment or use of such technologies, which mayconsist of workshops, publications, con-

ferences, and a data base for use by the pub-lic and private sectors.

(g) DOMESTIC PARTS MANUFACTURERS.—Incarrying out this section, the Secretary, inconsultation with the Secretary of Com-merce, shall issue regulations to ensure thatthe procurement practices of participatingelectric motor vehicle and associated equip-ment manufacturers do not discriminateagainst the United States manufacturers ofvehicle parts.

(h) HOLD HARMLESS.—Nothing in this sec-tion shall be construed to alter, affect, mod-ify, or change any activities or agreementsinitiated prior to the date of enactment ofthis Act with domestic motor vehicle manu-facturers through joint venture or consor-tium agreements regarding batteries forelectric motor vehicles.

(i) CONSULTATION.—The Secretary shallconsult with the Administrator of the Envi-ronmental Protection Agency and the Sec-retary of Transportation in carrying out thissection.

(j) FUEL CELLS FOR TRANSPORTATION.—(1)The Secretary shall develop and implement acomprehensive program of research, develop-ment, and demonstration of fuel cells and re-lated systems for transportation applica-tions through the establishment of one ormore cooperative programs among industry,government, and research institutions to de-velop and demonstrate the use of fuel cells asthe primary power source for private andmass transit vehicles and other mobile appli-cations.

(2) Research, development, and demonstra-tion activities under this subsection shall bedesigned to incorporate one or more of thefollowing priorities:

(A) The potential for near-term to mid-term commercialization.

(B) The ability of the systems to use a va-riety of renewable and nonfossil fuels.

(C) Emission reduction and energy con-servation potential.

(D) The potential to utilize fuel cells andfuel cell systems developed under Depart-ment of Defense and National Aeronauticsand Space Administration programs.

(E) The potential to take maximum prac-tical advantage of advances made in electricmotor vehicle research, stationary sourcefuel cell research, and other research activi-ties authorized by this title.

(3)(A) Research, development, and dem-onstration projects selected by the Secretaryunder this subsection shall apply to—

(i) passenger vehicles;(ii) vans and utility vehicles;(iii) light rail systems and locomotives;(iv) trucks, including long-haul trucks,

dump trucks, and garbage trucks;(v) passenger buses;(vi) non-chlorofluorocarbon mobile refrig-

eration systems;(vii) marine vessels, including recreational

marine engines; or(viii) mobile engines and power generation,

including recreational generators, and indus-trial and construction equipment.

(B) The Secretary shall establish programsto undertake research, development, anddemonstration activities for the applicationslisted in clauses (i) through (viii) of subpara-graph (A) in each of fiscal years 1993, 1994,1995, and 1996, based on the priorities estab-lished in paragraph (2), so that by the end ofthe period, research, development, and dem-onstration activities are under way for theapplications under each such clause. The ini-tiatives authorized and implemented pursu-ant to this subsection shall be in addition toany other fuel cell programs authorized inexisting law.

(k) DEFINITIONS.—For purposes of this sec-tion—

(1) the term ‘‘advanced battery tech-nology’’ means electrochemical storage de-


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1992 T121.25vices and systems, including fuel cells, andassociated technology necessary to charge,discharge, recharge, or regenerate such de-vices, for use as a source of power for anelectric motor vehicle and any other associ-ated equipment;

(2) the term ‘‘associated equipment’’ meansequipment necessary for the regeneration,refueling, or recharging of batteries or otherforms of electric energy used to power anelectric motor vehicle and, in the case ofelectric-hybrid vehicles, such term includesnonpetroleum-related equipment necessaryfor, and solely related to, the demonstrationof such vehicles;

(3) the term ‘‘electric motor vehicle’’means a motor vehicle primarily powered byan electric motor that draws current fromrechargeable storage batteries, fuel cells,photovoltaic arrays, or other sources of elec-tric current and may include an electric-hy-brid vehicle; and

(4) the term ‘‘electric-hybrid vehicle’’means vehicle primarily powered by an elec-tric motor that draws current from recharge-able storage batteries, fuel cells, or othersources of electric current and also relies ona nonelectric source of power that also oper-ates on or is capable of operating on a non-electrical source of power.SEC. 2026. RENEWABLE HYDROGEN ENERGY.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on renewable hydrogen energy systems. Suchprogram shall be conducted in accordancewith the Spark M. Matsunaga Hydrogen Re-search, Development, and DemonstrationAct of 1990 (Public Law 101–566), to supple-ment ongoing activities of a similar natureat the Department of Energy, including—

(1) at least one program to generate hydro-gen from renewable energy sources;

(2) at least one program to assess the fea-sibility of existing natural gas pipelines car-rying hydrogen gas, including experimen-tation if needed, with a goal of determiningthose components of the natural gas dis-tribution system that would have to bemodified to carry—

(A) more than 20 percent hydrogen mixedwith natural gas; and

(B) pure hydrogen gas;(3) at least one program to develop a hy-

drogen storage system suitable for electricmotor vehicles powered by fuel cells, withemphasis on—

(A) improved metal hydride hydrogen stor-age;

(B) activated carbon-based hydrogen stor-age;

(C) high pressure compressed hydrogen; or(D) other novel hydrogen storage tech-

niques;(4) at least one program to develop a fuel

cell suitable to power an electric motor vehi-cle; and

(5) such other programs as the Secretaryconsiders necessary to carry out this section.

(b) PROPOSALS.—Within 180 days after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.SEC. 2027. ADVANCED DIESEL EMISSIONS PRO-

GRAM.(a) PROGRAM DIRECTION.—The Secretary

shall initiate a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on diesel engine combustion and engine sys-tems, related advanced materials, and fuelsand lubricants to reduce emissions oxides ofnitrogen and particulates. Activities con-ducted under this program shall supplementactivities of a similar nature at the Depart-ment of Energy. Such program shall includefield demonstrations of sufficient scale andnumber in operating environments to provetechnical and economic viability to meet thegoal stated in subsection (b).

(b) PROGRAM GOAL.—The goal of the pro-gram established under subsection (a) shallbe to accelerate the ability of United Statesdiesel manufacturers to meet current and fu-ture oxides of nitrogen and particulate emis-sions requirements.

(c) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary, in consultation with appropriate rep-resentatives of industry, institutions ofhigher education, Federal agencies, includ-ing national laboratories, and professionaland technical societies, shall prepare andsubmit to the Congress a 5-year programplan to guide the activities under this sec-tion. Such plan shall be included as part ofthe plan required by section 2021(b).

(d) SOLICITATION OF PROPOSALS.—Within 1year after the date of enactment of this Act,the Secretary shall solicit proposals for con-ducting activities consistent with the 5-yearprogram plan.SEC. 2028. TELECOMMUTING STUDY.

(a) STUDY.—The Secretary, in consultationwith the Secretary of Transportation, shallconduct a study of the potential costs andbenefits to the energy and transportationsectors of telecommuting. The study shallinclude—

(1) an estimation of the amount and typeof reduction of commuting by form of trans-portation type and numbers of commuters;

(2) an estimation of the potential numberof lives saved;

(3) an estimation of the reduction in envi-ronmental pollution, in consultation withthe Environmental Protection Agency;

(4) an estimation of the amount and typeof reduction of energy use and savings byform of transportation type; and

(5) an estimation of the social impact ofwidespread use of telecommuting.

(b) This study shall be completed no morethan one hundred and eighty days after thedate of enactment of this Act. A report, sum-marizing the results of the study, shall betransmitted to the United States House ofRepresentatives and the Committee on En-ergy and Natural Resources of the UnitedStates Senate no more than sixty days aftercompletion of this study.TITLE XXI—ENERGY AND ENVIRONMENT

Subtitle A—Improved Energy EfficiencySEC. 2101. GENERAL IMPROVED ENERGY EFFI-

CIENCY.(a) PROGRAM DIRECTION.—The Secretary

shall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on cost effective technologies to improve en-ergy efficiency and increase the use of re-newable energy in the buildings, industrial,and utility sectors. Such program shall in-clude a broad range of technological ap-proaches, and shall include field demonstra-tions of sufficient scale and number to provetechnical and economic viability to meet thegoals stated in section 2001. Such programshall include the activities required undersections 2102, 2103, 2104, 2105, 2106, 2107, and2108 and ongoing activities of a similar na-ture at the Department of Energy. Such pro-gram shall also include the activities con-ducted pursuant to the Steel and AluminumEnergy Conservation and Technology Com-petitiveness Act of 1988 (Public Law 100–680)and the Department of Energy Metal CastingCompetitiveness Research Act of 1990 (PublicLaw 101–425).


(1) in the buildings sector—(A) to accelerate the development of tech-

nologies that will increase energy efficiency;(B) to increase the use of renewable en-

ergy; and(C) to reduce environmental impacts;(2) in the industrial sector—

(A) to accelerate the development of tech-nologies that will increase energy efficiencyin order to improve productivity;

(B) to increase the use of renewable en-ergy; and

(C) to reduce environmental impacts; and(3) in the utility sector—(A) to accelerate the development of tech-

nologies that will increase energy efficiency;and

(B) to increase the use of integrated re-source planning.

(c) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary shall prepare and submit to the Con-gress a 5-year program plan to guide activi-ties under this subtitle. In preparing the pro-gram plan, the Secretary shall consult withappropriate representatives of industry, util-ities, institutions of higher education, Fed-eral agencies, including national labora-tories, and professional and technical soci-eties.


(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this subtitle,including all building, industry, and utilitysectors energy conservation research and de-velopment, and inventions and innovationunder energy conservation technical and fi-nancial assistance, $178,250,000 for fiscal year1993 and $275,000,000 for fiscal year 1994.SEC. 2102. NATURAL GAS AND ELECTRIC HEAT-

ING AND COOLING TECHNOLOGIES.(a) PROGRAM DIRECTION.—(1) The Secretary

shall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on energy efficient natural gas and electricheating and cooling technologies for residen-tial and commercial buildings.

(2) The natural gas heating and coolingprogram shall include activities on—

(A) thermally activated heat pumps, in-cluding absorption heat pumps and engine-driven heat pumps; and

(B) other advanced natural gas tech-nologies, including fuel cells for residentialand commercial applications.

(3) The electric heating and cooling pro-gram shall focus on—

(A) advanced heat pumps;(B) thermal storage; and(C) advanced electric HVAC (heating, ven-

tilating, and air conditioning) and refrigera-tion systems that utilize replacements forchlorofluorocarbons.

(b) PROPOSALS.—Within 180 days after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.SEC. 2103. PULP AND PAPER.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on advanced pulp and paper technologies.Such program shall include activities on en-ergy generation technologies, boilers, com-bustion processes, pulping processes (exclud-ing de-inking), chemical recovery,causticizing, source reduction processes, andother related technologies that can improvethe energy efficiency of, and reduce the ad-verse environmental impacts of, pulp and pa-permaking operations. This section does notauthorize projects involving the combustionof waste paper, other than gasification.

(b) PROPOSALS.—Within 180 days after thedate of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.SEC. 2104. ADVANCED BUILDINGS FOR 2005.

(a) PROGRAM DIRECTION.—The Secretaryshall initiate a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,

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(1) building design, design methods, andconstruction techniques;

(2) building materials, including recycledmaterials, and components;

(3) on-site energy supply conversion sys-tems such as photovoltaics;

(4) automated energy management sys-tems;

(5) methods of evaluating performance; and(6) insulation products manufactured with

nonozone depleting materials.(b) PROPOSALS.—(1) SOLICITATION.—Within 1 year after the

date of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties under this section.

(2) CONTENTS OF PROPOSALS.—Proposalssubmitted under this subsection shall in-clude and be judged upon—

(A) evidence of knowledge of current build-ing practices in the United States and inother countries;

(B) an explanation of how the proposal willencourage the commercialization of thetechnologies resulting from activities in sub-section (a);

(C) evidence of consideration of collabora-tion with Department of Energy nationallaboratories;

(D) evidence of collaboration with relevantindustry or other groups or organizations;and

(E) a demonstration of the ability of theproposers to undertake and complete theproject proposed.SEC. 2105. ELECTRIC DRIVES.

(a) PROGRAM.—The Secretary shall conducta 5-year program, in accordance with sec-tions 3001 and 3002 of this Act, to increasethe efficiency of electric drive technologies,including adjustable speed drives, high speedmotors, and high efficiency motors.

(b) PROPOSALS.—Within 1 year after thedate of enactment of this Act, the Secretaryshall solicit proposals for projects under thissection.SEC. 2106. STEEL, ALUMINUM, AND METAL RE-

SEARCH.(a) STEEL AMENDMENTS.—The Steel and

Aluminum Energy Conservation and Tech-nology Competitiveness Act of 1988 is amend-ed—

(1) in section 4(b)(5), by striking ‘‘Indus-trial Programs’’ and inserting in lieu thereof‘‘Industrial Technologies’’;

(2) in section 8, by inserting at the end thefollowing new sentence: ‘‘The reports sub-mitted at the close of fiscal years 1993, 1995,and 1997 shall also contain a complete sum-mary of activities under the managementplan and the research plan from the firstyear of their operation, along with an analy-sis of the extent to which they have suc-ceeded in accomplishing the purposes of thisAct.’’;

(3) in section 9(a)(1), by striking ‘‘and$25,000,000 for fiscal year 1991’’ and insertingin lieu thereof ‘‘$25,000,000 for fiscal year1991, $17,968,000 for fiscal year 1992, and$18,091,000 for each of the fiscal years 1993through 1997, to be derived from sums au-thorized under section 2101(e) of the EnergyPolicy Act of 1992’’;

(4) in section 9(b), by striking ‘‘and 1991’’and inserting in lieu thereof ‘‘1991, 1992, 1993,1994, 1995, 1996, and 1997, to be derived fromsums otherwise authorized to be appro-priated to the Institute’’; and

(5) in section 11(a), by striking ‘‘or fiscalyear 1991’’ both places it appears and insert-ing in lieu thereof ‘‘fiscal year 1991, fiscalyear 1992, fiscal year 1993, fiscal year 1994,fiscal year 1995, fiscal year 1996, and fiscalyear 1997’’.

(b) METAL CASTING AMENDMENT.—Section 8of the Department of Energy Metal Casting

Competitiveness Research Act of 1990 (PublicLaw 101–425) is amended by striking ‘‘and1993’’ and inserting in lieu thereof ‘‘1993, 1994,1995, 1996, and 1997, to be derived from suchsums as are otherwise authorized under sec-tion 2101(e) of the Energy Policy Act of1992’’.SEC. 2107. IMPROVING EFFICIENCY IN ENERGY-

INTENSIVE INDUSTRIES.(a) SECRETARIAL ACTION.—The Secretary,

in accordance with sections 3001 and 3002 ofthis Act, shall—

(1) pursue a research, development, dem-onstration and commercial application pro-gram intended to improve energy efficiencyand productivity in energy-intensive indus-tries and industrial processes; and

(2) undertake joint ventures to encouragethe commercialization of technologies devel-oped under paragraph (1).

(b) JOINT VENTURES.—(1) The Secretaryshall—

(A) conduct a competitive solicitation forproposals from private firms and investorsfor such joint ventures under subsection(a)(2); and

(B) provide financial assistance to at leastfive such joint ventures.

(2) The purpose of the joint ventures shallbe to design, test, and demonstrate changesto industrial processes that will result in im-proved energy efficiency and productivity.The joint ventures may also demonstrateother improvements of benefit to such indus-tries so long as demonstration of energy effi-ciency improvements is the principal objec-tive of the joint venture.

(3) In evaluating proposals for financial as-sistance and joint ventures under this sec-tion, the Secretary shall consider—

(A) whether the activities conducted underthis section improve the quality and energyefficiency of industries or industrial proc-esses;

(B) the regional distribution of the energy-intensive industries and industrial processes;and

(C) whether the proposed joint ventureproject would be located in the region whichhas the energy-intensive industry and indus-trial processes that would benefit from theproject.SEC. 2108. ENERGY EFFICIENT ENVIRONMENTAL

PROGRAM.(a) PROGRAM DIRECTION.—The Secretary, in

consultation with the Administrator of theEnvironmental Protection Agency, is au-thorized to continue to carry out a 5-yearprogram to improve the energy efficiencyand cost effectiveness of pollution preven-tion technologies and processes, includingsource reduction and waste minimizationtechnologies and processes. The purposes ofthis section shall be to—

(1) apply a systems approach to minimizingadverse environmental effects of industrialproduction in the most cost effective and en-ergy efficient manner; and

(2) incorporate consideration of the entirematerials and energy cycle with the goal ofminimizing adverse environmental impacts.

(b) IDENTIFICATION OF OPPORTUNITIES.—Within 9 months after the date of enactmentof this Act, the Secretary, in consultationwith the Administrator of the Environ-mental Protection Agency, shall identify op-portunities for the demonstration of energyefficient pollution prevention technologiesand processes.

(c) REPORT.—Within 1 year after the dateof enactment of this Act, the Secretary shallsubmit a report to Congress evaluating theopportunities identified under subsection (b).Such report shall include—

(1) an assessment of the technologies avail-able to increase productivity and simulta-neously reduce the consumption of energyand material resources and the production ofwastes;

(2) an assessment of the current use of suchtechnologies by industry in the UnitedStates;

(3) the status of any such technologies cur-rently being developed, together with pro-jected schedules of their commercial avail-ability;

(4) the energy savings resulting from theuse of such technologies;

(5) the environmental benefits of suchtechnologies;

(6) the costs of such technologies;(7) an evaluation of any existing Federal or

State regulatory disincentives for the em-ployment of such technologies; and

(8) an evaluation of any other barriers tothe use of such technologies.

In preparing the report required by this sub-section, the Secretary shall consult with theAdministrator of the Environmental Protec-tion Agency, any other Federal, State, orlocal official the Secretary considers nec-essary, representatives of appropriate indus-tries, members of organizations formed tofurther the goals of environmental protec-tion or energy efficiency, and other appro-priate interested members of the public, asdetermined by the Secretary.

(d) PROPOSALS.—Within 1 year after thedate of enactment of this Act, the Secretary,in consultation with the Administrator ofthe Environmental Protection Agency, shallsolicit proposals for activities under this sec-tion. Proposals selected under this sub-section shall demonstrate—

(1) technical viability and cost effective-ness; and

(2) procedures for technology transfer andinformation outreach during and after com-pletion of the project.

Subtitle B—Electricity Generation and UseSEC. 2111. RENEWABLE ENERGY.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a comprehensive 5-year pro-gram, in accordance with sections 3001 and3002 of this Act, to provide cost-effective op-tions for the generation of electricity fromrenewable energy sources for grid andnongrid application, including field dem-onstrations of sufficient scale and number inoperating environments to prove technicaland economic feasibility for providing costeffective generation and for meeting the goalstated in section 2001(3) and section1602(a)(4).

(b) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary shall prepare and submit to the Con-gress a 5-year program plan to guide the ac-tivities under this section. In preparing theprogram plan, the Secretary shall consultwith appropriate representatives of industry,institutions of higher education, Federalagencies, including national laboratories,and professional and technical societies.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section,including all solar energy programs (otherthan activities under section 2021), geo-thermal systems, electric energy systems,and energy storage systems, $208,975,000 forfiscal year 1993 and $275,000,000 for fiscal year1994.SEC. 2112. HIGH EFFICIENCY HEAT ENGINES.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,to improve the efficiency of heat engines.Such program shall—

(1) include field demonstrations of suffi-cient scale and number so as to demonstratetechnical and economic feasibility;

(2) incorporate materials that increase en-gine efficiency; and

(3) cover advanced engine designs for elec-tric and industrial power generation for a


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(A) mechanically recuperated gas turbines;(B) intercooled gas turbines with steam in-

jection or recuperation;(C) gas turbines utilizing reformed fuels or

hydrogen; and(D) high efficiency, simple cycle gas tur-

bines.(b) PROGRAM GOAL.—The goal of the pro-

gram established under subsection (a) shallbe to develop heat engines that can achieveover 50 percent efficiency in the mid-term.

(c) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary shall prepare and submit to the Con-gress a 5-year program plan, to be includedin the plan required under section 2101(c), toguide the activities under this section. Inpreparing the program plan, the Secretaryshall consult with appropriate representa-tives of industry, institutions of higher edu-cation, Federal agencies, including the Envi-ronmental Protection Agency and nationallaboratories, and professional and technicalsocieties.


(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this sectionsuch sums as may be necessary to be derivedfrom sums authorized under section 2101(e).SEC. 2113. CIVILIAN NUCLEAR WASTE.

(a) STUDY.—The Secretary shall conduct astudy of the potential for minimizing thevolume and toxic lifetime of nuclear waste,including an analysis of the viability of ex-isting technologies and an assessment of theextent of research and development requiredfor new technologies.

(b) PROGRAM.—Based on the results of thestudy required under subsection (a), the Sec-retary shall prepare and submit to Congressa 5-year program plan for carrying out a pro-gram of research and development on newtechnologies for minimizing the volume andtoxic lifetime of, and thereby mitigatinghazards associated with, nuclear waste.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$4,700,000 for fiscal year 1993 and such sumsas may be necessary for fiscal year 1994.SEC. 2114. FUSION ENERGY.

(a) PROGRAM.—The Secretary shall conducta fusion energy 5-year program, in accord-ance with sections 3001 and 3002 of this Act,that by the year 2010 will result in a tech-nology demonstration which verifies thepracticability of commercial electric powerproduction.


(1) a broad based fusion energy program;(2) United States participation in the Engi-

neering Design Activity of the InternationalThermonuclear Experimental Reactor(ITER) program and in the related researchand technology development efforts;

(3) the development of technology for fu-sion power and industrial participation inthe development of such technology;

(4) the design and construction of a majornew machine for fusion research and tech-nology development consistent with para-graphs (2) and (3); and

(5) research and development for InertialConfinement Fusion Energy and develop-ment of a Heavy Ion Inertial ConfinementFusion experiment.

(c) MANAGEMENT PLAN.—(1) Within 180 daysafter the date of enactment of this Act, theSecretary shall prepare a comprehensivemanagement plan for the fusion energy pro-

gram. The plan shall include specific pro-gram objectives, milestones and schedulesfor technology development, and cost esti-mates and program management resource re-quirements.

(2) The plan shall also include a descriptionof—

(A) United States participation in the En-gineering Design Activity of ITER, includingindustrial participation;

(B) potential United States participationin the construction and operation of an ITERfacility; and

(C) the requirements needed to build andtest an inertial fusion energy reactor for thepurpose of power production.

(3) As part of the plan required under para-graph (1), the Secretary shall evaluate thestatus of international fusion programs andevaluate whether the Federal Governmentshould initiate efforts to strengthen existinginternational cooperative agreements in fu-sion energy or enter into new cooperativeagreements to accomplish the purposes ofthis section.

(4) The plan shall also evaluate the extentto which university or private sector partici-pation is appropriate or necessary in order tocarry out the purposes of this section.

(5) Within 1 year after the date of enact-ment of this Act, and every 2 years there-after, the Secretary shall issue a report de-scribing the progress made in meeting theprogram objectives, milestones, and sched-ules established in the management plan.Each such report shall also describe the or-ganization of the program, the personnel as-signed and funds committed to the program,and exependitures made in carrying out theprogram objectives. The report shall be sub-mitted with the plan required under section2304.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$339,710,000 for fiscal year 1993 and $380,000,000for fiscal year 1994.SEC. 2115. FUEL CELLS.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a 5-year program, in accord-ance with sections 3001 and 3002 of this Act,on efficient and environmentally benignpower generation using fuel cells. The pro-gram may include activities on molten car-bonate, solid oxide, including tubular, mono-lithic, and planar technologies, and advancedconcepts.

(b) PROGRAM GOAL.—The goal of the pro-gram established under subsection (a) is thedevelopment of cost-effective, efficient, andenvironmentally benign fuel cell systemswhich will operate on fossil fuels in multipleend use sectors.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$51,555,000 for fiscal year 1993 and $56,000,000for fiscal year 1994.SEC. 2116. ENVIRONMENTAL RESTORATION AND

WASTE MANAGEMENT PROGRAM.

(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for fiscal year 1993 $70,000,000for the Fast Flux Test Facility to maintainthe operational status of the reactor, suchsums to be derived from amounts appro-priated to the Secretary for the environ-mental restoration and waste managementprogram.

(b) LONG-TERM MISSIONS.—The Secretaryshall aggressively pursue the developmentand implementation of long-term missionsfor the Fast Flux Test Facility. Within 6months after the date of enactment of thisAct, the Secretary shall submit to the Con-gress a report on the progress made in carry-ing out this subsection.

SEC. 2117. HIGH-TEMPERATURE SUPERCONDUC-TIVITY PROGRAM.

(a) PROGRAM.—The Secretary shall carryout a 5-year program, in accordance withsections 3001 and 3002 of this Act, on high-temperature superconducting electric powerequipment technologies. Elements of theprogram shall include, but are not limitedto—

(1) activities that address the developmentof high-temperature superconducting mate-rials that have increased electrical currentcapacity, which shall be the emphasis of theprogram for the near-term;

(2) the development of prototypes, whereappropriate, of the major elements of asuperconducting electric power system suchas motors, generators, transmission lines,transformers, and magnetic energy storagesystems;

(3) activities that will improve the effi-ciency of materials performance of highertemperatures and at all magnetic field ori-entations;

(4) development of prototypes based onhigh-temperature superconducting wire, thatoperate at the highest temperature possible,and refrigeration systems using cryogenicssuch as nitrogen;

(5) activities that will assist the privatesector with designs for more efficient elec-tric power generation and delivery systemswhich are cost competitive with conven-tional energy systems; and

(6) development of prototypes that haveapplication in both the commercial and de-fense sectors.

The Secretary is also encouraged to expeditegovernment, laboratory, industry, and uni-versity collaborative agreements under ex-isting mechanisms at the Department of En-ergy in coordination with other Federalagencies.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this section$21,900,000 for fiscal year 1993 and such sumsas may be necessary for subsequent fiscalyears, to be derived from sums authorizedunder section 2111(c).

SEC. 2118. ELECTRIC AND MAGNETIC FIELDS RE-SEARCH AND PUBLIC INFORMATIONDISSEMINATION PROGRAM.

(a) PROGRAM.—The Secretary shall, in ac-cordance with this section (including theagenda developed under subsection (d)(1)(A))and within 2 months after the date of the en-actment of this Act, establish a comprehen-sive program to—

(1) determine whether or not exposure toelectric and magnetic fields produced by thegeneration, transmission, and use of electricenergy affects human health;

(2) carry out research, development, anddemonstration with respect to technologiesto mitigate any adverse human health ef-fects; and

(3) provide for dissemination of informa-tion described in subsection (b)(1) to the pub-lic.

(b) CONTENTS.—The program shall providefor—

(1) collection, compilation, publication,and dissemination of scientifically valid in-formation on—

(A) possible human health effects of elec-tric and magnetic fields;

(B) the types and extent of human expo-sure to electric and magnetic fields in var-ious occupational and residential settings;

(C) technologies to measure and character-ize electric and magnetic fields; and

(D) methods to assess and manage exposureto electric and magnetic fields;

(2)(A) research on mechanisms by whichelectric and magnetic fields interact with bi-ological systems; and

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sible human health effects of electric andmagnetic fields; and

(3) research, development, and demonstra-tion with respect to—

(A) technologies to improve the measure-ment and characterization of electric andmagnetic fields; and

(B) techniques to assess and manage expo-sure to electric and magnetic fields.

(c) ROLE OF THE DIRECTOR.—(1) ROLE OF THE DIRECTOR.—The Secretary

of Health and Human Services, actingthrough the Director, shall have sole respon-sibility under the program for research onpossible human health effects of electric andmagnetic fields. The Director may delegatethis responsibility to the extent the Directordetermines appropriate.

(2) AGREEMENT.—Within 6 months after thedate of the enactment of this Act, the Sec-retary shall enter into an agreement withthe Secretary of Health and Human Servicesto carry out, through the Director, the infor-mation activities under subsection (b)(1)(A)and the research under subsection (b)(2).

(3) ACTIONS OF THE DIRECTOR.—The actionsof the Director in carrying out research andinformation responsibilities under this sec-tion shall not be subject to approval by theSecretary.

(4) TRANSFER OF FUNDS.—The Secretary isauthorized, subject to appropriations Acts,to transfer funds to the Director to carry outthe Director’s responsibilities under para-graph (2).

(5) REPORT.—The Director shall report, byJune 1, 1995, and by March 31, 1997, and as ap-propriate, to the Interagency Committee es-tablished under subsection (d) and to Con-gress the findings and conclusions of the Di-rector on the extent to which exposure toelectric and magnetic fields produced by thegeneration, transmission, or use of electricenergy affects human health.

(d) INTERAGENCY COMMITTEE.—(1) The President shall, within 2 months

after the date of the enactment of this Act,establish the Electric and Magnetic FieldsInteragency Committee to—

(A) develop within 8 months after the dateof the enactment of this Act a comprehen-sive agenda for conducting research, develop-ment, and demonstration under the program,with particular emphasis on electric andmagnetic fields of the 60 hertz frequency;

(B) develop recommendations, within 8months after the date of the enactment ofthis Act, for guidelines for the coordinationof activities of Federal agencies engaged inresearch on human health effects of electricand magnetic fields that ensure that such re-search advances the agenda under subpara-graph (A) and is not unnecessarily duplica-tive of other research activities;

(C) develop recommendations, within 8months after the date of the enactment ofthis Act, for mechanisms for communicationof the results of the program to the public,including recommendations on the scope andnature of the information to be dissemi-nated; and

(D) monitor, review and periodically evalu-ate the program.

(2)(A) The Interagency Committee shall becomposed of 9 members with 1 member to beappointed from each of the following:

(i) The Department of Energy.(ii) The National Institute of Environ-

mental Health Sciences.(iii) The Environmental Protection Agen-

cy.(iv) The Department of Defense.(v) The Occupational Safety and Health

Administration.(vi) The National Institute of Standards

and Technology.(vii) The Department of Transportation.

(viii) The Rural Electrification Adminis-tration.

(ix) The Federal Energy Regulatory Com-mission.

(B) The Interagency Committee shall electa chairperson from among its members whoshall be responsible for ensuring that the du-ties of the Interagency Committee are car-ried out.

(C) Agencies that have members on theInteragency Committee shall provide appro-priate staff to carry out the duties of theInteragency Committee.

(e) ADVISORY COMMITTEE.—(1) Not later than 2 months after the date

of the enactment of this Act, the Secretaryof Health and Human Services and the Sec-retary shall establish the National Electricand Magnetic Fields Advisory Committee inaccordance with the Federal Advisory Com-mittee Act and this section.

(2) The Advisory Committee shall makerecommendations to the Interagency Com-mittee with respect to the duties of theInteragency Committee under subsection(d)(1) and advise the Secretary and the Direc-tor with respect to the design and implemen-tation of the program, including preparationof solicitations for proposals to conduct re-search under the program.

(3) The Advisory Committee shall be com-posed of 10 members, chosen from among ex-perts in possible human health effects ofelectric and magnetic fields, experts in themeasurement and characterization of elec-tric and magnetic fields, experts in the as-sessment and management of electric andmagnetic fields, State regulatory agencies,State health agencies, electric utilities, elec-tric equipment manufacturers, labor unionsand the public. Five members shall be chosenby the Secretary of Health and Human Serv-ices in consultation with the Director, and 5members shall be chosen by the Secretary.

(4) The Advisory Committee shall elect achairperson from among its members whoshall be responsible for ensuring that the du-ties of the Advisory Committee are carriedout.

(5) The Advisory Committee shall termi-nate not later than December 31, 1997.

(f) FINANCIAL ASSISTANCE.—(1) The Secretary and the Director may

provide financial assistance and enter intocontracts to conduct activities under theprogram.

(2) The Secretary shall solicit contribu-tions from non-Federal sources to offset atleast 50 percent of the total funding for allactivities under the program. The Secretaryshall adopt procedures, including a mecha-nism for collecting contributions, that en-sures that no contributor of non-Federalfunds may influence the program.

(3) The Secretary may not obligate fundsunder this section in any fiscal year unlessfunds received from non-Federal sourcesunder paragraph (2) are available to offset atleast 50 percent of the appropriations madeunder subsection (j) for such fiscal year.

(4) SOLICITATION AND SELECTION OF PROPOS-ALS.—

(A) IN GENERAL.—Within 15 months afterthe date of the enactment of this Act, and asoften thereafter as appropriate, the Sec-retary and the Director shall, in consulta-tion with the Interagency Committee, solicitand select proposals to conduct activitiesunder the program.

(B) CONSULTATION WITH ADVISORY COMMIT-TEE.—In preparing solicitations for proposalsto conduct activities, the Secretary and theDirector shall consult with the AdvisoryCommittee.

(C) PEER REVIEW PANELS.—Before a pro-posal to conduct activities under the pro-gram may be selected by the Secretary orthe Director, such proposal must be submit-

ted to, and evaluated by, at least one sci-entific and technical peer review panel.

(g) REPORTS.—(1) REPORT UPON COMPLETION OF ACTIVITY.—

Any person who conducts activities underthe program shall, upon completion of theactivity, submit to the National Academy ofSciences, the Interagency Committee, andthe Advisory Committee a report summariz-ing the activities and results thereof.

(2) REPORT TO INTERAGENCY COMMITTEE ANDADVISORY COMMITTEE.—The Secretary shallenter into appropriate arrangements withthe National Academy of Sciences underwhich the Academy shall periodically submitto the Interagency Committee and the Advi-sory Committee a report that evaluates theresearch activities under the program. Thereport shall include recommendations topromote the effective transfer of informationderived from such research projects, includ-ing the transfer to representatives of Stateregulatory agencies, State health agencies,electric utilities, electrical equipment man-ufacturers, labor unions, and the public. TheSecretary shall be responsible for expensesincurred by the Academy in connection withthe preparation of such reports.

(3) REPORT TO CONGRESS.—The InteragencyCommittee, in consultation with the Advi-sory Committee, shall submit to the Sec-retary and the Congress—

(A) not later than December 31, 1995, a re-port summarizing the progress of the re-search program established under this sub-section; and

(B) not later than September 30, 1997, afinal report stating the Committee’s findingsand conclusions on the effects, if any, ofelectric and magnetic fields on humanhealth and remedial actions, if any, thatmay be needed to minimize any such healtheffects.

(h) CONFLICTS OF INTEREST.—The Secretaryand the Director shall include conflict of in-terest provisions in any grant or other fund-ing provided, or contract entered into, underthe research program established under thissection including provisions—

(1) that require any person conducting aproject under such program to disclose anyother source of funding received by the per-son to conduct other related projects, includ-ing funding received from consulting onissues relating to electric and magneticfields; and

(2) that prohibit a person who has beenawarded a grant or contract under this pro-gram from receiving compensation beyondexpenses for testifying in a court of law asan expert on the specific research the personis conducting under such grant or contract.

(i) DEFINITIONS.—For purposes of this sec-tion:

(1) The term ‘‘Advisory Committee’’ meansthe National Electric and Magnetic FieldsAdvisory Committee established under sub-section (e).

(2) The term ‘‘Interagency Committee’’means the Electric and Magnetic FieldsInteragency Committee established undersubsection (d).

(3) The term ‘‘Director’’ means the Direc-tor of the National Institute of Environ-mental Health Sciences.

(4) The term ‘‘program’’ means the electricand magnetic fields research and public in-formation dissemination program estab-lished in subsection (a).

(5) The term ‘‘State’’ means each of the 50States, the District of Columbia, the Com-monwealth of Puerto Rico, the Common-wealth of the Northern Mariana Islands,Guam, the Virgin Islands, American Samoa,the Trust Territory of the Pacific Islands,and any other commonwealth, territory, orpossession of the United States.

(j) AUTHORIZATION OF APPROPRIATIONS.—


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1992 T121.25(1) GENERAL AUTHORIZATION.—There are au-

thorized to be appropriated to the Secretarya total of $65,000,000 for the period encom-passing fiscal years 1993 through 1997 tocarry out the provisions of this section, ex-cept that not more than $1,000,000 may be ex-pended in any such fiscal year for activitiesunder subsection (b)(1). Any amounts appro-priated pursuant to this paragraph shall re-main available until expended.

(2) RESTRICTIONS ON USE OF FUNDS.—(A) ADMINISTRATIVE EXPENSES OF CERTAIN

FUNDING RECIPIENTS.—Of the total funds pro-vided to any institution under this section,the amount of such funds that may be usedfor the administrative indirect costs of theinstitution may not exceed 26 percent of themodified direct costs of the project.

(B) ADMINISTRATIVE EXPENSES OF THE SEC-RETARY AND THE DIRECTOR.—Of the totalamount of funds made available under thissection for any fiscal year, not more than 10percent of such funds may be used for au-thorized administrative expenses of the Sec-retary and the Director in carrying out thissection.

(C) CONSTRUCTION AND REHABILITATION OFFACILITIES AND EQUIPMENT.—Funds madeavailable under this section may not be usedfor the construction or rehabilitation of fa-cilities or fixed equipment.

(k) SENSE OF CONGRESS.—It is the sense ofthe Congress that remedial action taken bythe Government on electric and magneticfields, if and as necessary, should be basedon, and consistent with, scientifically validresearch such as the results and findings ofthe research authorized by this Act.

(l) SUNSET PROVISION.—All authority underthis section shall expire on December 31,1997.SEC. 2119. SPARK M. MATSUNAGA RENEWABLE

ENERGY AND OCEAN TECHNOLOGYCENTER.

(a) FINDINGS.—The Congress finds that—(1) the late Spark M. Matsunaga, United

States Senator from Hawaii, was a long-standing champion of research and develop-ment of renewable energy, particularly windand ocean energy, photovoltaics, and hydro-gen fuels;

(2) it was Senator Matsunaga’s vision thatrenewable energy could provide a sustainedsource of non-polluting energy and that suchforms of alternative energy might ulti-mately be employed in the production of liq-uid hydrogen as a transportation fuel and en-ergy storage medium available as an energyexport;

(3) Senator Matsunaga also believed thatresearch on other aspects of renewable en-ergy and ocean resources, such as advancedmaterials, could be crucial to full develop-ment of energy storage and conversion sys-tems; and

(4) Keahole Point, Hawaii is particularlywell-suited as a site to conduct renewableenergy and associated marine research.

(b) PURPOSE.—It is the purpose of this sec-tion to establish the facilities and equipmentlocated at Keahole Point, Hawaii as a coop-erative research and development facility, tobe known as the Spark M. Matsunaga Re-newable Energy and Ocean Technology Cen-ter.

(c) ESTABLISHMENT.—The facilities andequipment located at Keahole Point, Hawaiiare established as the Spark M. MatsunagaRenewable Energy and Ocean TechnologyCenter (in this section referred to as the‘‘Center’’).

(d) ADMINISTRATION.—(1) Not later than 180days after the date of enactment of this Act,the Secretary may authorize a cooperativeagreement with a qualified research institu-tion to administer the Center.

(2) For the purpose of paragraph (1), aqualified research institution is a researchinstitution located in the State of Hawaii

that has demonstrated competence and willbe the lead organization in the State in re-newable energy and ocean technologies.

(e) ACTIVITIES.—The Center may carry outresearch, development, educational, andtechnology transfer activities on—

(1) renewable energy;(2) energy storage, including the produc-

tion of hydrogen from renewable energy;(3) materials applications related to energy

and marine environments;(4) other environmental and ocean research

concepts, including sea ranching and globalclimate change; and

(5) such other matters as the Secretarymay direct.

(f) MATCHING FUNDS.—To be eligible forFederal funds under this section, the Centermust provide funding in cash or in kind fromnon-Federal sources for each amount pro-vided by the Secretary.

(g) AUTHORIZATION.—There is authorized tobe appropriated to the Secretary for carryingout this section such sums as may be nec-essary, to be derived from sums authorizedunder section 2111(c).

Subtitle C—Advanced Nuclear ReactorsSEC. 2121. PURPOSES AND DEFINITIONS.

(a) PURPOSES.—The purposes of this sub-title are—

(1) to require the Secretary to carry out ci-vilian nuclear programs in a way that willlead toward the commercial availability ofadvanced nuclear reactor technologies; and

(2) to authorize such activities to furtherthe timely availability of advanced nuclearreactor technologies, including technologiesthat utilize standardized designs or exhibitpassive safety features.

(b) DEFINITIONS.—For purposes of this sub-title—

(1) the term ‘‘advanced nuclear reactortechnologies’’ means—

(A) advanced light water reactors that maybe commercially available in the near-term,including but not limited to mid-sized reac-tors with passive safety features for the gen-eration of commercial electric power fromnuclear fission; and

(B) other advanced nuclear reactor tech-nologies that may require prototype dem-onstration prior to commercial availabilityin the mid- or long-term, including but notlimited to high-temperature, gas-cooled re-actors and liquid metal reactors, for the gen-eration of commercial electric power fromnuclear fission;

(2) the term ‘‘Commission’’ means the Nu-clear Regulatory Commission;

(3) the term ‘‘standardized design’’ means adesign for a nuclear power plant that may beutilized for a multiple number of units or amultiple number of sites; and

(4) the term ‘‘certification’’ means ap-proval by the Commission of a standardizeddesign.SEC. 2122. PROGRAM, GOALS, AND PLAN.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a program to encourage the de-ployment of advanced nuclear reactor tech-nologies that to the maximum extent prac-ticable—

(1) are cost effective in comparison to al-ternative sources of commercial electricpower of comparable availability and reli-ability, taking into consideration life cycleenvironmental costs;

(2) facilitate the design, licensing, con-struction, and operation of a nuclear power-plant using a standardized design;

(3) exhibit enhanced safety features; and(4) incorporate features that advance the

objectives of the Nuclear Non-ProliferationAct of 1978.


(1) for the near-term—

(A) to facilitate the completion, by Sep-tember 30, 1996, for certification by the Com-mission, of standardized advanced lightwater reactor technology designs that theSecretary determines have the characteris-tics described in subsection (a)(1) through(4);

(B) to facilitate the completion of submis-sions, by September 30, 1996, for preliminarydesign approvals by the Commission ofstandardized designs for the modular high-temperature gas-cooled reactor technologyand the liquid metal reactor technology; and

(C) to evaluate by September 30, 1996, acti-nide burn technology to determine if it canreduce the volume of long-lived fission by-products;

(2) for the mid-term—(A) to facilitate increased efficiency of en-

hanced safety, advanced light water reactorsto produce electric power at the lowest costto the customer;

(B) to develop advanced reactor conceptsthat are passively safe and environmentallyacceptable; and

(C) to complete necessary research and de-velopment on high-temperature gas-cooledreactor technology and liquid metal reactortechnology to support the selection, by Sep-tember 30, 1998, of one or both of those tech-nologies as appropriate for prototype dem-onstration; and

(3) for the long-term, to complete researchand development and demonstration to sup-port the design of advanced reactor tech-nologies capable of providing electric powerto a utility grid as soon as practicable but nolater than the year 2010.

(c) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary shall prepare and submit to the Con-gress a 5-year program plan to guide the ac-tivities under this section. The program planshall include schedule milestones, Federalfunding requirements, and non-Federal costsharing requirements. In preparing the pro-gram plan, the Secretary shall take into con-sideration—

(1) the need for, and the potential for fu-ture adoption by electric utilities or otherentities of, advanced nuclear reactor tech-nologies that are available, under develop-ment, or have the potential for being devel-oped, for the generation of energy from nu-clear fission;

(2) how the Federal Government, actingthrough the Secretary, can be effective inensuring the availability of such tech-nologies when they are needed;

(3) how the Federal Government can mosteffectively cooperate with the private sectorin the accomplishment of the goals set forthin subsection (b); and

(4) potential alternative funding sourcesfor carrying out this section.In preparing the program plan, the Secretaryshall consult with appropriate representa-tives of industry, institutions of higher edu-cation, Federal agencies, including nationallaboratories, and professional and technicalsocieties. The Secretary shall update theprogram plan annually and submit such up-date to Congress. Each such update shall de-scribe any activities that are behind sched-ule, any funding shortfalls, and any othercircumstances that might affect the abilityof the Secretary to meet the goals set forthin subsection (b).SEC. 2123. COMMERCIALIZATION OF ADVANCED

LIGHT WATER REACTOR TECH-NOLOGY.

(a) CERTIFICATION OF DESIGNS.—In order toachieve the goal of certification of com-pleted standardized designs by the Commis-sion by 1996 as set forth in section 2122(b),the Secretary shall conduct a 5-year programof technical and financial assistance to en-courage the development and submission for

JOURNAL OF THE

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OCTOBER 5T121.25certification of advanced light water reactordesigns which, in the judgment of the Sec-retary, can be certified by the Commissionby no later than the end of fiscal year 1996.

(b) FIRST-OF-A-KIND ENGINEERING.—(1) ESTABLISHMENT OF PROGRAM.—The Sec-

retary shall conduct a program of Federal fi-nancial and technical assistance for thefirst-of-a-kind engineering design of stand-ardized commercial nuclear powerplantswhich are included, as of the date of enact-ment of this Act, in the Department of Ener-gy’s program for certification of advancedlight water reactor designs.

(2) SELECTION CRITERIA.—In order to be eli-gible for assistance under this subsection, anentity shall certify to the satisfaction of theSecretary that—

(A) the entity, or its members, are bonafide entities engaged in the design, engineer-ing, manufacture, construction, or operationof nuclear reactors;

(B) the entity, or its members, have the fi-nancial resources necessary for, and fully in-tend to pursue the design, engineering, man-ufacture, construction, and operation in theUnited States of nuclear power plantsthrough completion of construction and intooperation;

(C) the design proposed is scheduled forcertification by the Commission under theDepartment of Energy’s program for certifi-cation of light water reactor designs; and

(D) at least 50 percent of the funding forthe project shall be obtained from non-Fed-eral sources, and a substantial portion ofthat non-Federal funding shall be obtainedfrom utilities or entities whose primary pur-pose is the production of electrical power forpublic consumption.

(3) PROGRAM DOCUMENTS.—The Secretaryshall prepare and submit to the Congress aprogram document for each design selectedunder this subsection, specifying goals andobjectives, major milestones for achievingthose goals and objectives, and the workproducts to be provided to the Secretary ormade available for inspection.

(4) FUNDING LIMITATIONS.—(A) Before enter-ing into an agreement with an entity underthis subsection, the Secretary shall establisha cost ceiling for the contribution of theFederal Government for the project, andshall report such cost ceiling to the Con-gress.

(B) No entity shall receive assistanceunder this subsection for a period greaterthan 4 years.

(C) The aggregate funding provided by theSecretary for projects under this subsectionshall not exceed $100,000,000 for the period en-compassing fiscal years 1993 through 1997.

(5) STATUS REPORT.—The Secretary shallannually submit to the Congress a status re-port on each project receiving assistanceunder this subsection.SEC. 2124. PROTOTYPE DEMONSTRATION OF AD-

VANCED NUCLEAR REACTOR TECH-NOLOGY.

(a) SOLICITATION OF PROPOSALS.—Within 3years after the date of enactment of thisAct, the Secretary shall solicit proposals forcarrying out the preliminary engineering de-sign of not more than 2 prototype advancednuclear reactor technologies developed bythe Department of Energy, other than ad-vanced light water reactor technologies, nec-essary to support a decision on whether torecommend construction of a prototype dem-onstration reactor with the characteristicsdescribed in section 2123(a). Proposals sub-mitted under this subsection shall be formodular design concepts of sufficient size toaddress requirements related to the certifi-cation of a standardized design.

(b) RECOMMENDATION TO CONGRESS.—(1) Notlater than September 30, 1998, the Secretaryshall submit to Congress recommendationson whether to build one or more prototype

demonstration reactors under this section.Such recommendations shall—

(A) specify a preferred technology or tech-nologies;

(B) include detailed information on mile-stones for construction and operation;

(C) include an estimate of the funding re-quirements; and

(D) specify the extent and type of non-Fed-eral financial support anticipated.In developing the recommendations underthis paragraph, the Secretary shall providefor public notice and an opportunity for com-ment, and shall solicit the views of the Com-mission and other parties with technical ex-pertise the Secretary considers useful in thedevelopment of such recommendations.

(2) The prototype demonstration programunder this section shall be carried out to themaximum extent practicable with privatesector funding. At least 50 percent of thefunding for such program shall be non-Fed-eral funding. The extent of non-Federal costsharing proposed for any demonstrationproject shall be a criterion for the selectionof the project.

(c) SELECTION OF TECHNOLOGY.—Any tech-nology selected by the Secretary for rec-ommendation for prototype demonstrationunder this section shall to the maximum ex-tent possible exhibit the characteristics setforth in section 2123(a).SEC. 2125. REPEALS.

The Renewable Energy and Energy Effi-ciency Technology Competitiveness Act of1989 is amended—

(1) in section 4(c)(1)(C), by inserting ‘‘and’’after ‘‘Program;’’;

(2) in section 4(c)(2)(C), by striking ‘‘Pro-gram; and’’ and inserting in lieu thereof‘‘Program.’’;

(3) by striking section 4(c)(3);(4) in section 5(1)(B), by inserting ‘‘and’’

after ‘‘program;’’;(5) in section 5(2)(B), by striking ‘‘program;

and’’ and inserting in lieu thereof ‘‘pro-gram.’’; and

(6) by striking section 5(3).SEC. 2126. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary for carrying out this subtitle$212,804,000 for fiscal year 1993 and such sumsas may be necessary for fiscal year 1994.Amounts authorized or otherwise madeavailable for program direction, space reac-tor power systems, advanced radioisotopepower systems, and the space explorationinitiative under nuclear energy research anddevelopment shall be in addition to theamounts authorized in the preceding sen-tence.

TITLE XXII—ENERGY AND ECONOMICGROWTH

SEC. 2201. NATIONAL ADVANCED MATERIALS INI-TIATIVE.

(a) PROGRAM DIRECTION.—The Secretaryshall establish a 5-year National AdvancedMaterials Program, in accordance with sec-tions 3001 and 3002 of this Act. Such programshall foster the commercialization of tech-niques for processing, synthesizing, fabricat-ing, and manufacturing advanced materialsand associated components. At a minimum,the Program shall expedite the private sec-tor deployment of advanced materials for usein high performance energy efficient and re-newable energy technologies in the indus-trial, transportation, and buildings sectorsthat can foster economic growth and com-petitiveness. The Program shall include fielddemonstrations of sufficient scale and num-ber to prove technical and economic feasibil-ity.

(b) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary, in consultation with appropriate rep-resentatives of industry, institutions of

higher education, Department of Energy na-tional laboratories, and professional andtechnical societies, shall prepare and submitto the Congress a 5-year program plan toguide activities under this section. The Sec-retary shall biennially update and resubmitthe program plan to Congress.

(c) PROPOSALS.—(1) SOLICITATION.—Within 1 year after the

date of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties consistent with the 5-year program plan.Such proposals may be submitted by one ormore parties.

(2) CONTENTS OF PROPOSALS.—Proposalssubmitted under this subsection shall in-clude—

(A) an explanation of how the proposal willexpedite the commercialization of advancedmaterials in energy efficiency or renewableenergy in the near-term to mid-term;

(B) evidence of consideration of whetherthe unique capabilities of Department of En-ergy national laboratories warrants collabo-ration with such laboratories, and the extentof such collaboration proposed;

(C) a description of the extent to which theproposal includes collaboration with rel-evant industry or other groups or organiza-tions; and

(D) evidence of the ability of the proposersto undertake and complete the proposedproject.

(d) GENERAL SERVICES ADMINISTRATIONDEMONSTRATION PROGRAM.—The Secretary,in consultation with the Administrator ofGeneral Services, shall establish a programto expedite the use, in goods and services ac-quired by the General Services Administra-tion, of advanced materials technologies.Such program shall include a demonstrationof the use of advanced materials tech-nologies as may be necessary to establishtechnical and economic feasibility. The Sec-retary shall transfer funds to the GeneralServices Administration for carrying outthis subsection.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this sectionsuch sums as may be necessary, to be derivedfor energy efficient applications from section2101(e) and for renewable applications fromsection 2111(c), including Department of En-ergy national laboratory participation inproposals submitted under subsection (c),and including transferring funds to the Gen-eral Services Administration.SEC. 2202. NATIONAL ADVANCED MANUFACTUR-

ING TECHNOLOGIES INITIATIVE.(a) PROGRAM DIRECTION.—The Secretary

shall establish a 5-year National AdvancedManufacturing Technologies Program, in ac-cordance with sections 3001 and 3002 of thisAct. Such program shall foster the commer-cialization of advanced manufacturing tech-nologies to improve energy efficiency andproductivity in manufacturing. At a mini-mum, the Program shall expedite the privatesector deployment of advanced manufactur-ing technologies to improve productivity,quality, and control in manufacturing proc-esses that can foster economic growth, en-ergy efficiency, and competitiveness. Theprogram shall include field demonstrationsof sufficient scale and number to prove tech-nical and economic feasibility.

(b) PROGRAM PLAN.—Within 180 days afterthe date of enactment of this Act, the Sec-retary, in consultation with appropriate rep-resentatives of industry, institutions ofhigher education, Department of Energy na-tional laboratories, and professional andtechnical societies, shall prepare and submitto the Congress a 5-year program plan toguide activities under this section. The Sec-retary shall biennially update and resubmitthe program plan to Congress.


2677

1992 T121.25(c) PROPOSALS.—(1) SOLICITATION.—Within 1 year after the

date of enactment of this Act, the Secretaryshall solicit proposals for conducting activi-ties consistent with the 5-year program plan.Such proposals may be submitted by one ormore parties.

(2) CONTENTS OF PROPOSALS.—Proposalssubmitted under this subsection shall in-clude—

(A) an explanation of how the proposal willexpedite the commercialization of advancedmanufacturing technologies to improve en-ergy efficiency in the building, industry, andtransportation sectors;

(B) evidence of consideration of whetherthe unique capabilities of Department of En-ergy national laboratories warrants collabo-ration with such laboratories, and the extentof such collaboration proposed;

(C) a description of the extent to which theproposal includes collaboration with rel-evant industry or other groups or organiza-tions; and

(D) evidence of the ability of the proposersto undertake and complete the proposedproject.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out this sectionsuch sums as may be necessary, to be derivedfrom sums authorized under section 2101(e),including Department of Energy nationallaboratory participation in proposals sub-mitted under subsection (c).

SEC. 2203. SUPPORTING RESEARCH AND TECH-NICAL ANALYSIS.

(a) BASIC ENERGY SCIENCES.—(1) PROGRAM DIRECTION.—The Secretary

shall continue to support a vigorous programof basic energy sciences to provide basic re-search support for the development of energytechnologies. Such program shall focus onthe efficient production and use of energy,and the expansion of our knowledge of mate-rials, chemistry, geology, and other relatedareas of advancing technology development.

(2) USER FACILITIES.—(A) As part of theprogram referred to in paragraph (1), theSecretary shall carry out planning, construc-tion, and operation of user facilities to pro-vide special scientific and research capabili-ties, including technical expertise and sup-port as appropriate, to serve the researchneeds of our Nation’s universities, industry,private laboratories, Federal laboratories,and others. Research institutions or individ-uals from other nations shall be accommo-dated at such user facilities in cases wherereciprocal accommodations are provided toUnited States research institutions and indi-viduals or where the Secretary considerssuch accommodation to be in the nationalinterest.

(B) The construction of the Advanced Pho-ton Source at the Argonne National Labora-tory is hereby authorized.

(C) The Secretary shall not change theuser fee practice in effect as of October 1,1991, with respect to user facilities unless theSecretary notifies Congress 90 days beforethe effective date of any change.

(D) The Secretary shall expedite the designfor construction of the Advanced NeutronSource at the Oak Ridge National Labora-tory, in order to provide critical research ca-pabilities in support of our national researchinitiatives for advanced materials and bio-technology, as well as a broad range of re-search. Such action shall be consistent withthe Basic Energy Sciences Advisory Commit-tee’s Technical Evaluation of acceleratorand reactor neutron source technologies.Within 90 days after the date of enactment ofthis Act, the Secretary shall submit to theCongress a plan for such design, including aschedule for construction.

(3) COST SHARING.—The Secretary shall notrequire cost sharing for research and devel-opment pursuant to this subsection, except—

(A) as otherwise provided for in coopera-tive research and development agreementsor other agreements entered into under ex-isting law;

(B) for fees for user facilities, as deter-mined by the Secretary; or

(C) in the case of specific projects, wherethe Secretary determines that the benefits ofsuch research and development accrue to aspecific industry or group of industries, inwhich case cost sharing under section 3002 ofthis Act shall apply.

(b) UNIVERSITY AND SCIENCE EDUCATION.—(1) The Secretary shall support programs forimprovements and upgrading of universityresearch reactors and associated instrumen-tation and equipment. Within 1 year afterthe date of enactment of this Act, the Sec-retary shall submit to the Congress a reporton the condition and status of university re-search reactors, which includes a 5-year planfor upgrading and improving such facilities,instrumentation capabilities, and relatedequipment.

(2) The Secretary shall develop a methodto evaluate the effectiveness of science andmathematics education programs providedby the Department of Energy and its labora-tories, including specific evaluation criteria.

(3)(A)(i) The Director of the Office of En-ergy Research shall operate an ExperimentalProgram to Stimulate Competitive Research(in this paragraph referred to as ‘‘EPSCoR’’)as part of the Department of Energy’s Uni-versity and Science Education Programs.

(ii) The objectives of EPSCoR shall be—(I) to enhance the competitiveness of the

peer-review process within academic institu-tions in eligible States; and

(II) to increase the probability of long-term growth of competitive funding to inves-tigators at institutions from eligible States.

(iii) In order to carry out the objectivesstated in clause (ii), EPSCoR shall providefor activities which may include (but not belimited to) competitive research awards andgraduate traineeships.

(iv) EPSCoR shall assist those Statesthat—

(I) historically have received relatively lit-tle Federal research and development fund-ing; and

(II) have demonstrated a commitment todevelop their research bases and improvescience and engineering research and edu-cation programs at their universities andcolleges.

(B) For purposes of this paragraph, theterm ‘‘eligible States’’ means States that re-ceived a Department-EPSCoR planning ortraineeship grant in fiscal year 1991 or fiscalyear 1992.

(C) No more than $5,000,000 of the funds ap-propriated to EPSCoR in any fiscal year,through fiscal year 1997, are authorized to beappropriated for graduate traineeships.

(c) TECHNOLOGY TRANSFER.—The Secretaryshall support technology transfer activitiesconducted by the National Laboratories.Within 1 year after the date of enactment ofthis Act, the Secretary shall submit to theCongress a report on the adequacy of fundingfor such activities, along with a proposal rec-ommending ways to reduce the length oftime required to consummate cooperative re-search and development agreements.

(d) FACILITIES SUPPORT FOR MULTIPROGRAMENERGY LABORATORIES.—

(1) FACILITY POLICY.—The Secretary shalldevelop and implement a least cost strategyfor correcting facility problems, closingunneeded facilities, making facility modi-fications, and building new facilities atmultiprogram energy laboratories.

(2) FACILITY PLAN.—Within 1 year after thedate of enactment of this Act, the Secretary

shall prepare and submit to the Congress acomprehensive plan for conducting future fa-cility maintenance, making repairs, modi-fications, and new additions, and construct-ing new facilities at multiprogram energylaboratories. Such plan shall provide for fa-cilities work in accordance with the follow-ing priorities, listed in descending order ofpriority:

(A) Providing for the safety and health ofemployees, visitors, and the general publicwith regard to correcting existing struc-tural, mechanical, electrical, and environ-mental deficiencies.

(B) Providing for the repair and rehabilita-tion of existing facilities to keep them in useand prevent deterioration.

(C) Providing engineering design and con-struction services for those facilities whichrequire modification or additions in order tomeet the needs of new or expanded programs.

Such plan shall include plans for new facili-ties and facility modifications which will berequired to meet the Department of Energy’schanging missions of the twenty-first cen-tury, including schedules and estimates forimplementation, and including a section out-lining long-term funding requirements con-sistent with anticipated budgets and annualauthorization of appropriations. Such planshall address the coordination of moderniza-tion and consolidation of facilities in orderto meet changing mission requirements, andshall provide for annual reports to Congresson accomplishments, conformance to sched-ules, commitments, and expenditures.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for Supporting Research andTechnical Analysis, including Basic EnergySciences, Energy Research Analysis, Univer-sity and Science Education, TechnologyTransfer, Advisory and Oversight ProgramDirection, and Facilities Support for Multi-program Energy Laboratories, $966,804,000 forfiscal year 1993 and such sums as may be nec-essary for fiscal year 1994.SEC. 2204. MATH AND SCIENCE EDUCATION PRO-

GRAM.(a) PROGRAM.—The Secretary shall enter

into contracts with existing qualified enti-ties to conduct science and mathematicseducation programs that supplement theSpecial Programs for Students from Dis-advantaged Backgrounds carried out by theSecretary of Education under sections 417Athrough 417F of Public Law 89–329, as amend-ed (20 U.S.C. 1070d through 1070d–1d).

(b) PURPOSE.—(1) The purpose of the pro-grams shall be to provide support to Federal,State, and private programs designed to pro-mote the participation of low-income andfirst generation college students as definedin section 417A of Public Law 89–329, asamended (20 U.S.C. 1070d–d), in post-second-ary science and mathematics education.

(2) Support activities may include—(A) the development of educational mate-

rials;(B) the training of teachers and counselors;(C) the establishment of student intern-

ships;(D) the development of seminars on mathe-

matics and science;(E) tutoring in mathematics and science;(F) academic counseling;(G) the development of opportunities for

research; and(H) such other activities that may promote

the participation of low-income and firstgeneration college students in post-second-ary science and mathematics education.

(c) SUPPORT.—(1) In carrying out the pur-pose of this section, the entities may providesupport under subsection (b)(2) to—

(A) low-income and first generation collegestudents; and

(B) institutions of higher education, publicand private agencies and organizations, and

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(2) The qualified entities shall, to the ex-tent practicable, coordinate support activi-ties under this section with the Secretary ofEducation and the Secretary.

(d) COOPERATION WITH QUALIFIED ENTI-TIES.—The Secretary shall cooperate withqualified entities and, to the extent prac-ticable, make available to the entities suchpersonnel, facilities, and other resources ofthe Department of Energy as may be nec-essary to carry out the duties of the entities.

(e) REPORT.—Not later than October 1 ofeach year, the entities shall report to theSecretary, the Secretary of Education, andthe Congress on—

(1) progress made to promote the participa-tion of low-income and first generation col-lege students in post-secondary science andmathematics education by—

(A) the qualified entities;(B) other mathematics and science edu-

cation programs of the Department of En-ergy; and

(C) the Special Programs for Students fromDisadvantaged Backgrounds of the Depart-ment of Education; and

(2) recommendations for such additionalactions as may be needed to promote theparticipation of low-income students in post-secondary science and mathematics edu-cation.

(f) EFFECT ON EXISTING PROGRAMS.—Theprograms in this section shall supplementand be developed in cooperation with thecurrent mathematics and science educationprograms of the Department of Energy andthe Department of Education but shall notsupplant them.

(g) DEFINITION.—For purposes of this sec-tion, the term ‘‘qualified entity’’ means anonprofit corporation, association, or insti-tution that has demonstrated special knowl-edge of, and experience with, the educationof low-income and first generation collegestudents and whose primary mission is theoperation of national programs that focus onlow-income students and provide trainingand other services to educators.

(h) AUTHORIZATION.—There are authorizedto be appropriated such sums as may be nec-essary, to be derived from section 2203(e) andthe Environmental Restoration and WasteManagement program, to carry out the pur-poses of this section.SEC. 2205. INTEGRATION OF RESEARCH AND DE-

VELOPMENT.Within 180 days after the date of enact-

ment of this Act, the Secretary, in consulta-tion with appropriate representatives of in-dustry, institutions of higher education, De-partment of Energy national laboratories,and professional and technical societies,shall prepare and submit to Congress a 5-year program plan for improving the integra-tion of basic energy research programs withother energy programs within the Depart-ment of Energy. Such program plan shall in-clude—

(1) an evaluation of current procedures andmechanisms used to achieve such integra-tion;

(2) an assessment of the role that the De-partment of Energy national laboratoriesplay in such integration;

(3) an identification and evaluation ofmodels that could enhance such integration;

(4) an identification and evaluation of newprograms, mechanisms, and related policyoptions that could improve the integratingprocess, including—

(A) set aside funding for matching orleveraging basic and applied programs;

(B) more formal linkages; and(C) program coordination;(5) recommendations for expanded research

and development and new technology areas;and

(6) budget estimates for activities underthis section.SEC. 2206. DEFINITIONS.

For purposes of this title—(1) the term ‘‘advanced manufacturing

technology’’ means processes, equipment,techniques, practices, and capabilities thatare applied for the purpose of—

(A) improving the productivity, quality, orenergy efficiency of the design, development,testing, or manufacture of a product; or

(B) expanding the technical capability todesign, develop, test, or manufacture a prod-uct that is fundamentally different in char-acter from existing products and that willresult in improved energy efficiency;

(2) the term ‘‘advanced materials’’ meansmaterials that are processed, synthesized,fabricated, and manufactured to develophigh performance properties that exceed thecorresponding properties of conventionalmaterials for structural, electronic, mag-netic, or photonic applications, or for join-ing, welding, bonding, or packaging compo-nents into complex assemblies, including—

(A) advanced monolithic materials such asmetals, ceramics, and polymers;

(B) advanced composite materials such asmetal matrix (including intermetallics),polymer matrix, ceramic matrix, continuousfiber ceramic composite, and carbon matrixcomposites; and

(C) advanced electronic, magnetic, andphotonic materials, including super-conducting, semiconductor, electrooptic,magnetooptic, thin-film, and special purposecoating materials used in technologies forenergy efficiency, renewable energy, or elec-tric power applications; and

(3) the term ‘‘United States’’ means the 50States of the United States, the District ofColumbia, the Commonwealth of PuertoRico, the United States Virgin Islands,Guam, the Northern Mariana Islands, andany other territory or possession of theUnited States.

TITLE XXIII—POLICY ANDADMINISTRATIVE PROVISIONS

SEC. 2301. POLICY ON MAJOR CONSTRUCTIONPROJECTS.

(a) REPORT AND MANAGEMENT PLAN.—TheSecretary shall submit to the Congress a re-port and management plan for any majorconstruction project involving $100,000,000 ormore, prior to the expenditure of thosefunds.

(b) CONGRESSIONAL REVIEW.—Expenditureof funds for a project described in subsection(a) may be made after a period of 30 calendardays (not including any day on which eitherHouse of Congress is not in session becauseof adjournment of more than 3 calendar daysprior to a day certain) has passed after re-ceipt of the report and management plan byCongress.SEC. 2302. ENERGY RESEARCH, DEVELOPMENT,

DEMONSTRATION, AND COMMER-CIAL APPLICATION ADVISORYBOARD.

(a) ESTABLISHMENT.—The Secretary shallestablish an Energy Research, Development,Demonstration, and Commercial ApplicationAdvisory Board (hereafter in this section re-ferred to as the ‘‘Advisory Board’’).

(b) RESPONSIBILITIES.—The Advisory Boardshall provide impartial technical advice tothe Secretary to assist in the development ofenergy research, development, demonstra-tion, and commercial application plans andreports under sections 6 and 15 of the FederalNonnuclear Energy Research and Develop-ment Act of 1974 (42 U.S.C. 5905 and 5914),under section 801 of the Department of En-ergy Organization Act (42 U.S.C. 7321), and asotherwise provided in titles XX throughXXIII of this Act. The Advisory Board shallalso periodically review such plans and re-ports and their implementation in relation

to the goals stated in section 2001 of this Act,and report the results of such review to theSecretary and the Congress. Such reportshall be included as part of the report re-quired under section 15 of the Federal Non-nuclear Energy Research and DevelopmentAct of 1974 (42 U.S.C. 5914).

(c) USE OF EXISTING ADVISORY BOARD.—TheSecretary may use an existing advisoryboard to carry out the responsibilities de-scribed in subsection (b).SEC. 2303. AMENDMENTS TO EXISTING LAW.

(a) FEDERAL NONNUCLEAR ENERGY RE-SEARCH AND DEVELOPMENT ACT OF 1974AMENDMENTS.—Section 6 of the Federal Non-nuclear Energy Research and DevelopmentAct of 1974 (42 U.S.C. 5905) is amended—

(1) in subsection (a)—(A) by striking ‘‘the Administrator’’ and

inserting ‘‘the Department of Energy Organi-zation Act (42 U.S.C. 7101 et seq.), and titlesXX through XXIII of the Energy Policy Actof 1992, the Secretary, in consultation withthe Advisory Board established under section2302 of the Energy Policy Act of 1992,’’;

(B) by striking ‘‘(to the early 1980’s)’’ inparagraph (1) and inserting ‘‘(the period upto 5 years after submission of the plan or itsannual revision)’’;

(C) by striking ‘‘(the early 1980’s to 2000)’’in paragraph (2) and inserting ‘‘(the periodfrom 5 years to 10 years after submission ofthe plan or its annual revision)’’; and

(D) by striking ‘‘(beyond 2000)’’ in para-graph (3) and inserting ‘‘(the period beyond10 years after submission of the plan or itsannual revision)’’;

(2) in subsection (b)—(A) by striking ‘‘Administrator’’ in para-

graphs (1) and (2) and inserting ‘‘Secretary,in consultation with the Advisory Board es-tablished under section 2302 of the EnergyPolicy Act of 1992,’’;

(B) by inserting ‘‘Such program shall beupdated and transmitted to the Congress an-nually as part of the report required undersection 15.’’ at the end of paragraph (1);

(C) by striking ‘‘(to the early 1980’s), mid-dle-term (the early 1980’s to 2000), and long-term (beyond 2000) time intervals’’ in para-graph (2) and inserting ‘‘, middle-term, andlong-term time intervals described in sub-section (a)(1) through (3)’’;

(D) by striking ‘‘and’’ at the end of para-graph (3)(P);

(E) by striking the period at the end ofparagraph (3)(Q) and inserting a semicolon;and

(F) by adding at the end of paragraph (3)the following new subparagraphs:

‘‘(R) to implement the Renewable Energyand Energy Efficiency Technology Competi-tiveness Act of 1989 (42 U.S.C. 12001 et seq.);and

‘‘(S) to implement titles XX through XXIIIof the Energy Policy Act of 1992.’’; and

(3) in subsection (c)—(A) by striking ‘‘Administrator’’ and in-

serting ‘‘Secretary, in consultation with theAdvisory Board established under section2302 of the Energy Policy Act of 1992,’’; and

(B) by inserting ‘‘Such program shall beupdated and transmitted to the Congress an-nually as part of the report required undersection 15.’’ after ‘‘and demonstrationplans.’’.

(b) RENEWABLE ENERGY AND ENERGY EFFI-CIENCY TECHNOLOGY COMPETITIVENESS ACT OF1989 AMENDMENT.—Section 9(b)(4) of the Re-newable Energy and Energy Efficiency Tech-nology Competitiveness Act of 1989 (42 U.S.C.12006(b)(4)) is amended by inserting ‘‘and theplan developed under section 6 of the FederalNonnuclear Energy Research and Develop-ment Act of 1974 (42 U.S.C. 5905)’’ after ‘‘(42U.S.C. 7321)’’.SEC. 2304. MANAGEMENT PLAN.

(a) PLAN PREPARATION.—The Secretary, inconsultation with the Advisory Board estab-


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(b) CONTENTS OF PLAN.—The managementplan under subsection (a) shall provide for—

(1) investigation of promising energy andenergy efficiency resource technologies thathave been identified as potentially signifi-cant future contributors to national energysecurity;

(2) development of energy and energy effi-ciency resource technologies that have thepotential to reduce energy supply vulner-ability, and to minimize adverse impacts onthe environment, the global climate, and theeconomy; and

(3) creation of opportunities for export ofenergy and energy efficiency resource tech-nologies from the United States that can en-hance the Nation’s competitiveness.

(c) ENERGY TECHNOLOGY INVENTORY ANDSTATUS REPORT.—As part of the managementplan, the Secretary, with the advice of theAdvisory Board established under section2302 of this Act, shall develop an inventoryand status report of technologies to enhanceenergy supply and to improve the efficiencyof energy end uses. The inventory and statusreport shall include fossil, renewable, nu-clear, and energy conservation technologieswhich have not yet achieved the status offully reliable and cost-competitive commer-cial availability, but which the Secretaryprojects may become available with addi-tional research, development, and dem-onstration. The inventory and status reportshall provide, for each technology—

(1) an assessment of its—(A) degree of technological maturity; and(B) principal research, development, and

demonstration issues, including—(i) the barriers posed by capital, operating,

and maintenance costs;(ii) technical performance; and(iii) potential environmental impacts;(2) the projected time frame for commer-

cial availability, specifying at a minimumwhether the technology will be commer-cially available in the near-term, mid-term,or long-term, whether there are too manyuncertainties to project availability, orwhether it is unlikely that the technologywill ever be commercial; and

(3) a projection of the future cost-competi-tiveness of the technology in comparisonwith alternative technologies to provide thesame energy service.

(d) PUBLIC COMMENT.—The Secretary shallpublish the proposed management plan for awritten public comment period of at least 90days. The Secretary shall consider such com-ments and include a summary thereof in themanagement plan.

(e) PLAN SUBMISSION.—Within one yearafter the date of enactment of this Act, theSecretary shall submit the first managementplan under this section to Congress. There-after, the Secretary shall submit a revisedmanagement plan biennially, at the time ofsubmittal of the President’s annual budgetsubmission to the Congress.SEC. 2305. COSTS RELATED TO DECOMMISSION-

ING AND THE STORAGE AND DIS-POSAL OF NUCLEAR WASTE.

(a) AWARD OF CONTRACTS.—(1) PRIME CONTRACTORS.—In awarding con-

tracts to perform nuclear hot cell services,the Secretary, in evaluating bids for suchcontracts, shall exclude from considerationcosts related to the decommissioning of nu-clear facilities or the storage and disposal ofnuclear waste, if—

(A) one or more of the parties bidding toperform such services is a United Statescompany that is subject to such costs; and

(B) one or more of the parties bidding toperform such services is a foreign companythat is not subject to comparable costs.

(2) SUBCONTRACTORS.—Any person awardeda contract subject to the restrictions de-scribed in paragraph (1) who subcontractswith a person to perform the services de-scribed in such paragraph shall be subject tothe same restrictions in evaluating bidsamong potential subcontractors, as the Sec-retary was subject to in evaluating bidsamong prime contractors.

(b) ISSUANCE OF REGULATIONS.—The Sec-retary shall issue regulations not later than90 days after the date of the enactment ofthis Act to carry out the requirements ofsubsection (a).

(c) DEFINITIONS.—As used in this section—(1) the term ‘‘costs related to decommis-

sioning of nuclear facilities’’ means any costassociated with the compliance with regu-latory requirements governing the decom-missioning of nuclear facilities licensed bythe Nuclear Regulatory Commission;

(2) the term ‘‘costs related to storage anddisposal of nuclear waste’’ means any costs,whether required by regulation or incurredas a matter of prudent business practice, as-sociated with the storage or disposal of nu-clear waste;

(3) the term ‘‘nuclear hot cell services’’means services related to the examinationof, or performance of various operations on,nuclear fuel rods, control assemblies, orother components that are emitting largequantities of ionizing radiation; and

(4) the term ‘‘nuclear waste’’ means anyradioactive waste material subject to regula-tion by the Nuclear Regulatory Commissionor the Department of Energy.SEC. 2306. LIMITS ON PARTICIPATION BY COMPA-

NIES.A company shall be eligible to receive fi-

nancial assistance under titles XX throughXXIII of this Act only if—

(1) the Secretary finds that the company’sparticipation in any program under such ti-tles would be in the economic interest of theUnited States, as evidenced by investmentsin the United States in research, develop-ment, and manufacturing (including, for ex-ample, the manufacture of major compo-nents or subassemblies in the United States);significant contributions to employment inthe United States; an agreement with re-spect to any technology arising from assist-ance provided under this section to promotethe manufacture within the United States ofproducts resulting from that technology(taking into account the goals of promotingthe competitiveness of United States indus-try), and to procure parts and materials fromcompetitive suppliers; and

(2) either—(A) the company is a United States-owned

company; or(B) the Secretary finds that the company

is incorporated in the United States and hasa parent company which is incorporated in acountry which affords to United States-owned companies opportunities, comparableto those afforded to any other company, toparticipate in any joint venture similar tothose authorized under this Act; affords toUnited States-owned companies local invest-ment opportunities comparable to those af-forded to any other company; and affordsadequate and effective protection for the in-tellectual property rights of United States-owned companies.SEC. 2307. UNCOSTED OBLIGATIONS.

(a) REPORT.—Along with the submission ofeach of the President’s annual budget re-quests to Congress, the Secretary shall sub-mit to Congress a report which—

(1) identifies the amount of Department ofEnergy funds that were, as of the end of theprevious fiscal year—

(A) committed uncosted obligations; and(B) uncommitted uncosted obligations;(2) specifically describes the purposes for

which all such funds are intended; and(3) explains the effect that information

contained in the report has had on the an-nual budget request for the Department ofEnergy being simultaneously submitted.

(b) DEFINITIONS.—Within 90 days after thedate of enactment of this Act, the Secretaryshall submit a report to the Congress con-taining definitions of the terms ‘‘uncostedobligation’’, ‘‘committed uncosted obliga-tion’’, and ‘‘uncommitted uncosted obliga-tion’’ for purposes of reports to be submittedunder subsection (a).

TITLE XXIV—NON-FEDERAL POWER ACTHYDROPOWER PROVISIONS

SEC. 2401. RIGHTS-OF-WAY ON CERTAIN FEDERALLANDS.

Section 501 of the Federal Land Policy andManagement Act of 1976 (43 U.S.C. 1761) isamended—

(1) by inserting in subsection (a) after‘‘public lands’’ the following: ‘‘(includingpublic lands, as defined in section 103(e) ofthis Act, which are reserved from entry pur-suant to section 24 of the Federal Power Act(16 U.S.C. 818))’’;

(2) in paragraph (4) of subsection (a), bystriking ‘‘Federal Power Commission underthe Federal Power Act of 1935 (49 Stat. 847; 16U.S.C. 791) and inserting in lieu thereof‘‘Federal Energy Regulatory Commissionunder the Federal Power Act, including part1 thereof (41 Stat. 1063, 16 U.S.C. 791a-825r).’’;and

(3) by adding the following new subsectionat the end thereof:

‘‘(d) With respect to any project or portionthereof that was licensed pursuant to, orgranted an exemption from, part I of theFederal Power Act which is located on landssubject to a reservation under section 24 ofthe Federal Power Act and which did not re-ceive a permit, right-of-way or other ap-proval under this section prior to enactmentof this subsection, no such permit, right-of-way, or other approval shall be required forcontinued operation, including continued op-eration pursuant to section 15 of the FederalPower Act, of such project unless the Com-mission determines that such project in-volves the use of any additional public landsor National Forest lands not subject to suchreservation.’’.SEC. 2402. DAMS IN NATIONAL PARK SYSTEM

UNITS.After the date of enactment of this Act,

the Federal Energy Regulatory Commissionmay not issue an original license under PartI of the Federal Power Act (nor an exemp-tion from such Part) for any new hydro-electric power project located within theboundaries of any unit of the National ParkSystem that would have a direct adverse ef-fect on Federal lands within any such unit.Nothing in this section shall be construed asrepealing any existing provision of law (oraffecting any treaty) explicitly authorizing ahydroelectric power project.SEC. 2403. THIRD PARTY CONTRACTING BY FERC.

(a) ENVIRONMENTAL IMPACT STATEMENTS.—Where the Federal Energy Regulatory Com-mission is required to prepare a draft or finalenvironmental impact statement under theNational Environmental Policy Act of 1969(42 U.S.C. 4321 and following) in connectionwith an application for a license under partI of the Federal Power Act, the Commissionmay permit, at the election of the applicant,a contractor, consultant or other personfunded by the applicant and chosen by theCommission from among a list of such indi-viduals or companies determined by theCommission to be qualified to do such work,to prepare such statement for the Commis-sion. The contractor shall execute a disclo-

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OCTOBER 5T121.25sure statement prepared by the Commissionspecifying that it has no financial or otherinterest in the outcome of the project. TheCommission shall establish the scope of workand procedures to assure that the contractor,consultant or other person has no financialor other potential conflict of interest in theoutcome of the proceeding. Nothing hereinshall affect the Commission’s responsibilityto comply with the National EnvironmentalPolicy Act of 1969.

(b) ENVIRONMENTAL ASSESSMENTS.—Wherean environmental assessment is requiredunder the National Environmental PolicyAct of 1969 (42 U.S.C. 4321 and following) inconnection with an application for a licenseunder part I of the Federal Power Act, theCommission may permit an applicant, or acontractor, consultant or other person se-lected by the applicant, to prepare such envi-ronmental assessment. The Commissionshall institute procedures, including pre-ap-plication consultations, to advise potentialapplicants of studies or other informationforeseeably required by the Commission. TheCommission may allow the filing of such ap-plicant-prepared environmental assessmentsas part of the application. Nothing hereinshall affect the Commission’s responsibilityto comply with the National EnvironmentalPolicy Act of 1969.

(c) EFFECTIVE DATE.—This section shalltake effect with respect to license applica-tions filed after the enactment of this Act.SEC. 2404. IMPROVEMENT AT EXISTING FEDERAL

FACILITIES.(a) STUDIES OF OPPORTUNITIES FOR IN-

CREASED HYDROELECTRIC GENERATION.—TheSecretary, in consultation with the Sec-retary of the Interior and the Secretary ofthe Army, shall perform reconnaissancelevel studies of cost effective opportunitiesto increase hydropower production at exist-ing federally-owned or operated water regu-lation, storage, and conveyance facilities.Such studies shall be completed within 2years after the date of enactment of this Actand transmitted to the Committee on En-ergy and Natural Resources and the Commit-tee on Environment and Public Works of theUnited States Senate and to the Committeeon Energy and Commerce, the Committee onInterior and Insular Affairs, and the Com-mittee on Public Works and Transportationof the United States House of Representa-tives. An individual study shall be preparedfor each of the Nation’s principal river ba-sins. Each such study shall identify and de-scribe with specificity the following matters:

(1) opportunities to improve the efficiencyof hydroelectric generation at such facilitiesthrough, but not limited to, mechanical,structural, or operational changes;

(2) opportunities to improve the efficiencyof the use of water supplied or regulated byFederal projects where such improvementcould, in the absence of legal or administra-tive constraints, make additional water sup-plies available for hydroelectric generationor reduce project energy use;

(3) opportunities to create additional gen-erating capacity at existing facilitiesthrough, but not limited to, the constructionof additional generating units, the upratingof generators and turbines, and the construc-tion of pumped storage facilities; and

(4) preliminary assessment of the costs andthe economic and environmental con-sequences of such measures.

(b) EXCEPTION FOR PREVIOUS STUDIES.—Inthose cases where studies of the type re-quired by this section have been prepared byany agency of the United States and pub-lished within the ten years prior to the dateof enactment of this Act, the Secretary maychoose not to perform new studies but incor-porate the information developed by suchstudies into the study reports required bythis section.

(c) AUTHORIZATION.—There is authorized tobe appropriated in each of the fiscal years1993, 1994, and 1995 such sums as may be nec-essary to carry out the purposes of this sec-tion.SEC. 2405. WATER CONSERVATION AND ENERGY

PRODUCTION.(a) STUDIES.—The Secretary of the Inte-

rior, acting pursuant to the Federal reclama-tion laws (Act of June 17, 1902, 32 Stat. 388),and Acts supplementary thereto and amend-atory thereof, is authorized and directed toconduct feasibility investigations of oppor-tunities to increase the amount of hydro-electric energy available for marketing bythe Secretary from Federal hydroelectricpower generation facilities resulting from areduction in the consumptive use of suchpower for Federal reclamation project pur-poses or as a result of an increase in theamount of water available for such genera-tion because of water conservation efforts onFederal reclamation projects or a combina-tion thereof. The Secretary of the Interior isfurther authorized and directed to conductfeasibility investigations of opportunities tomitigate damages to or enhance fish andwildlife as a result of increasing the amountof water available for such purposes becauseof water conservation efforts on Federal rec-lamation projects. Such feasibility inves-tigations shall include, but not be limitedto—

(1) an analysis of the technical, environ-mental, and economic feasibility of reducingthe amount of water diverted upstream ofsuch Federal hydroelectric power generationfacilities by Federal reclamation projects;

(2) an estimate of the reduction, if any, ofproject power consumed as a result of the de-creased amount of diversion;

(3) an estimate of the increase in theamount of electrical energy and related reve-nues which would result from the marketingof such power by the Secretary;

(4) an estimate of the fish and wildlife ben-efits which would result from the decreasedor modified diversions;

(5) a finding by the Secretary of the Inte-rior that the activities proposed in the fea-sibility study can be carried out in accord-ance with applicable Federal and State law,interstate compacts and the contractual ob-ligations of the Secretary; and

(6) a finding by the affected Federal PowerMarketing Administrator that the hydro-electric component of the proposed waterconservation feature is cost-effective andthat the affected Administrator is able tomarket the hydro-electric power expected tobe generated.

(b) CONSULTATION.—In preparing feasibilitystudies pursuant to this section, the Sec-retary of the Interior shall consult with, andseek the recommendations of, affected State,local and Indian tribal interests, and shallprovide for appropriate public comment.

(c) AUTHORIZATION.—There is hereby au-thorized to be appropriated to the Secretaryof the Interior such sums as may be nec-essary to carry out this section.SEC. 2406. FEDERAL PROJECTS IN THE PACIFIC

NORTHWEST.Without further appropriation and without

fiscal year limitation, the Secretaries of theInterior and Army are authorized to plan,design, construct, operate and maintain gen-eration additions, improvements and re-placements, at their respective Federalprojects in the Pacific Northwest Region asdefined in the Pacific Northwest ElectricPower Planning and Conservation Act(Northwest Power Act), Public Law 96–501 (16U.S.C. 839a(14)), and to operate and maintainthe respective Secretary’s power facilities inthe Region, that the respective Secretary de-termines necessary or appropriate and thatthe Bonneville Power Administrator subse-

quently determines necessary or appropriate,with any funds that the Administrator deter-mines to make available to the respectiveSecretary for such purposes. Each Secretaryis authorized, without further appropriation,to accept and use such funds for such pur-poses: Provided, That, such funds shall con-tinue to be exempt from sequestration pursu-ant to section 255(g)(1) of the Balanced Budg-et and Emergency Deficit Control Act of1985: Provided further, That this section shallnot modify or affect the applicability of anyprovision of the Northwest Power Act. Thisprovision shall be effective on October 1,1993.SEC. 2407. CERTAIN PROJECTS IN ALASKA.

(a) AUTHORITY TO ISSUE EXEMPTIONS.—Ex-cept as provided in subsection (b) or (c), uponreceipt of an application under this section,the Federal Energy Regulatory Commission(hereinafter in this section referred to as the‘‘Commission’’) may grant, notwithstandingthe provisions of section 2402, an exemptionin whole or in part from the requirements ofpart I of the Federal Power Act, includingany license requirements contained in Part Iof the Federal Power Act, to the followingfacilities located in the State of Alaska:

(1) a project located at Sitka, Alaska, withapplication numbered UL89–08–000;

(2) a project located at Juneau, Alaska,with preliminary permit numbered 10681–000;and

(3) a project located near Nondalton, Alas-ka, with application numbered EL88–25–001.

(b) CAPACITY LIMITATIONS.—No exemptionunder subsection (a) shall be applicable toany facility the installed capacity of whichexceeds 5 megawatts.

(c) MANDATORY TERMS AND CONDITIONS.—Inmaking the determination under subsection(a), the Commission shall consult with theUnited States Fish and Wildlife Service, theNational Marine Fisheries Service, and theState agency exercising administration overthe fish and wildlife resources of the State ofAlaska, in the manner provided by the Fishand Wildlife Coordination Act (16 U.S.C. 661,et seq.), and shall include in any such exemp-tion—

(1) such terms and conditions as the Fishand Wildlife Service, National Marine Fish-eries Service, and the State agency each de-termine are appropriate to prevent loss of, ordamage to, such resources and to otherwisecarry out the purposes of such Act, and

(2) such terms and conditions as the Com-mission deems appropriate to ensure thatsuch facility continues to comply with theprovisions of this section and terms and con-ditions included in any such exemption.

(d) ENFORCEMENT.—Any violation of a termor condition of any exemption granted undersubsection (a) shall be treated as a violationof a rule or order of the Commission underthe Federal Power Act.

(e) FEES.—The Commission may establishfees which shall be paid by an applicant fora license or exemption for a project that isrequired to meet terms and conditions set byfish and wildlife agencies under subsection(c). Such fees shall be adequate to reimbursethe fish and wildlife agencies referred to insubsection (c) for any reasonable costs in-curred in connection with any studies orother reviews carried out by such agenciesfor purposes of compliance with this section.The fees shall, subject to annual appropria-tions Acts, be transferred to such agenciesby the Commission for use solely for pur-poses of carrying out such studies and shallremain available until expended.

(f) EXPEDITED PROCESSING.—A completedapplication for an exemption under this sec-tion shall be acted on by the Commission inan expedited manner, in accordance withthis section, within 6 months after the dateon which the application for such exemption


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STATE OF HAWAII.The Federal Energy Regulatory Commis-

sion, in consultation with the State of Ha-waii, shall carry out a study of hydroelectriclicensing in the State of Hawaii. For pur-poses of considering whether such licensingshould be transferred to the State, within 18months after the enactment of this Act, theCommission shall complete the study andsubmit a report containing the results of thestudy to the Committee on Energy and Com-merce of the United States House of Rep-resentatives and to the Committee on En-ergy and Natural Resources of the UnitedStates Senate. The study shall examine, andthe report shall at a minimum contain ananalysis of, each of the following:

(1) The State regulatory programs applica-ble to hydroelectric power production andthe extent to which such programs are suit-able as a substitute for regulation of suchprojects under the Federal Power Act, tak-ing into considertaion all aspects of suchregulation, including energy, environmental,and safety considerations.

(2) Any unique geographical, hydrological,or other characteristics of waterways in Ha-waii or any other aspects of hydroelectricpower development and natural resource pro-tection in Hawaii that would justify or notjustify the permanent transfer of FederalEnergy Regulatory Commission jurisdictionover hydroelectric power projects to thatState.

(3) The adequacy of mechanisms and proce-dures for consideration of fish and wildlifeand other environmental values applicable inconnection with hydroelectric power devel-opment in Hawaii under the State programsreferred to in paragraph (1).

(4) Any national policy considerations thatwould justify or not justify the removal ofFederal Energy Regulatory Commission ju-risdiction over hydroelectric power projectsin Hawaii.

(5) The precedent-setting effect, if any, ofprovisions of law adopted by the Congress re-moving Federal Energy Regulatory Commis-sion jurisdiction over hydroelectric powerprojects in Hawaii.SEC. 2409. EVALUATION OF DEVELOPMENT PO-

TENTIAL.The Act of August 30, 1935 (Public Law No.

409 of the 74th Congress), is amended by in-serting ‘‘The Secretary shall undertake ademonstration project to evaluate the poten-tial for hydropower development, utilizingtidal currents;’’ after ‘‘Document Numbered15, Seventy-fourth Congress;’’.

TITLE XXV—COAL, OIL, AND GASSEC. 2501. HOT DRY ROCK GEOTHERMAL EN-

ERGY.(a) USGS PROGRAM.—The Secretary of the

Interior, acting through the United StatesGeological Survey, and in consultation withthe Secretary of Energy, shall establish a co-operative Government-private sector pro-gram with respect to hot dry rock geo-thermal energy resources on public lands (assuch term is defined in section 103(e) of theFederal Land Policy and Management Act of1976) and lands managed by the Departmentof Agriculture, other than any such public orother lands that are withdrawn from geo-thermal leasing. Such program shall include,but shall not be limited to, activities toidentify, select, and classify those areasthroughout the United States that have ahigh potential for hot dry rock geothermalenergy production and activities to developand disseminate information regarding theutilization of such areas for hot dry rock en-ergy production. Such information may in-clude information regarding field test proc-esses and techniques for assuring that hot

dry rock geothermal energy developmentprojects are developed in an economicallyfeasible manner without adverse environ-mental consequences. Utilizing the informa-tion developed by the Secretary, togetherwith information developed in connectionwith other related programs carried out byother Federal agencies, the Secretary, actingthrough the United States Geological Sur-vey, may also enter into contracts and coop-erative agreements with any public or pri-vate entity to provide assistance to any suchentity to enable such entity to carry out ad-ditional projects with respect to the utiliza-tion of hot dry rock geothermal energy re-sources which will further the purposes ofthis section.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as may be necesary to carry out thissection.SEC. 2502. HOT DRY ROCK GEOTHERMAL ENERGY

IN EASTERN UNITED STATES.The United States Geological Survey, in

collaboration with the Secretary of Energy,shall convene a workshop of interested gov-ernmental and private parties to discuss theregional potential for hot dry rock geo-thermal energy in the Eastern UnitedStates. The purpose of the workshop shall beto review the status of recoverability of hotdry rock energy in the Eastern United Statesand to determine what geologic, techno-logical, and economic obstacles need to beovercome to make the utilization of hot dryrock energy feasible. The workshop shall beconvened within 6 months after enactment ofthis Act and the United States GeologicalSurvey shall submit a report to Congresswithin 6 months after the workshop contain-ing a summary of the findings and conclu-sions of the workshop.SEC. 2503. COAL REMINING.

(a) MODIFICATION OF PROHIBITION.—Section510 of the Surface Mining Control and Rec-lamation Act of 1977 (30 U.S.C. 1260) isamended by adding the following new sub-section at the end thereof:

‘‘(e) MODIFICATION OF PROHIBITION.—Afterthe date of enactment of this subsection, theprohibition of subsection (c) shall not applyto a permit application due to any violationresulting from an unanticipated event orcondition at a surface coal mining operationon lands eligible for remining under a permitheld by the person making such application.As used in this subsection, the term ‘viola-tion’ has the same meaning as such term hasunder subsection (c). The authority of thissubsection and section 515(b)(20)(B) shall ter-minate on September 30, 2004.’’.

(b) PERIOD OF RESPONSIBILITY.—Section515(b)(20) of the Surface Mining Control andReclamation Act of 1977 (30 U.S.C. 1265(b)(20))is amended as follows:

(1) Insert ‘‘(A)’’ after ‘‘(20)’’.(2) Add the following new subparagraph at

the end thereof:‘‘(B) on lands eligible for remining assume

the responsibility for successful revegetationfor a period of two full years after the lastyear of augmented seeding, fertilizing, irri-gation, or other work in order to assure com-pliance with the applicable standards, exceptin those areas or regions of the countrywhere the annual average precipitation istwenty-six inches or less, then the operator’sassumption of responsibility and liabilitywill be extended for a period of five full yearsafter the last year of augmented seeding, fer-tilizing, irrigation, or other work in order toassure compliance with the applicable stand-ards.’’.

(c) DEFINITIONS.—Section 701 of the SurfaceMining Control and Reclamation Act of 1977(30 U.S.C. 1291) is amended by striking theperiod at the end of paragraph (32) and in-serting a semicolon in lieu thereof, and by

adding the following new paragraphs at theend thereof:

‘‘(33) the term ‘unanticipated event or con-dition’ as used in section 510(e) means anevent or condition encountered in a reminingoperation that was not contemplated by theapplicable surface coal mining and reclama-tion permit; and

‘‘(34) the term ‘lands eligible for remining’means those lands that would otherwise beeligible for expenditures under section 404 orunder section 402(g)(4).’’.

(d) ELIGIBILITY.—Section 404 of the SurfaceMining Control and Reclamation Act of 1977(30 U.S.C. 1234) is amended by adding the fol-lowing new sentence at the end thereof:‘‘Surface coal mining operations on lands el-igible for remining shall not affect the eligi-bility of such lands for reclamation and res-toration under this title after the release ofthe bond or deposit for any such operation asprovided under section 519. In the event thebond or deposit for a surface coal mining op-eration on lands eligible for remining is for-feited, funds available under this title maybe used if the amount of such bond or depositis not sufficient to provide for adequate rec-lamation or abatement, except that if condi-tions warrant the Secretary shall imme-diately exercise his authority under section410.’’.

(e) ABANDONED COAL REFUSE SITES.—(1)Notwithstanding any other provision of theSurface Mining Control and ReclamationAct of 1977 to the contrary, the Secretary ofthe Interior shall, within one year after theenactment of this Act, publish proposed reg-ulations in the Federal Register, and afteropportunity for public comment publishfinal regulations, establishing environ-mental protection performance and reclama-tion standards, and separate permit systemsapplicable to operations for the on-site re-processing of abandoned coal refuse and op-erations for the removal of abandoned coalrefuse on lands that would otherwise be eli-gible for expenditure under section 404 andsection 402(g)(4) of the Surface Mining Con-trol and Reclamation Act of 1977.

(2) The standards and permit systems re-ferred to in paragraph (1) shall distinguishbetween those operations which reprocessabandoned coal refuse on-site, and those op-erations which completely remove aban-doned coal refuse from a site for the directuse of such coal refuse, or for the reprocess-ing of such coal refuse, at another location.Such standards and permit systems shall bepremised on the distinct differences betweenoperations for the on-site reprocessing, andoperations for the removal, of abandonedcoal refuse and other types of surface coalmining operations.

(3) The Secretary of the Interior may de-vise a different standard than any of thoseset forth in section 515 and section 516 of theSurface Mining Control and ReclamationAct of 1977, and devise a separate permit sys-tem, if he determines, on a standard-by-standard basis, that a different standard mayfacilitate the on-site reprocessing, or the re-moval, of abandoned coal refuse in a mannerthat would provide the same level of environ-mental protection as under section 515 andsection 516.

(4) Not later than 30 days prior to the pub-lication of the proposed regulations referredto in this subsection, the Secretary shallsubmit a report to the Committee on Inte-rior and Insular Affairs of the United StatesHouse of Representatives, and the Commit-tee on Energy and Natural Resources of theUnited States Senate containing a detaileddescription of any environmental protectionperformance and reclamation standards, andseparate permit systems, devised pursuant tothis subsection.

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TION.(a) SUBSIDENCE.—(1) Title VII of the Sur-

face Mining Control and Reclamation Act of1977 (30 U.S.C. 1291 and following) is amendedby adding the following new section at theend thereof:‘‘SEC. 720. SUBSIDENCE.

‘‘(a) REQUIREMENTS.—Underground coalmining operations conducted after the dateof enactment of this section shall complywith each of the following requirements:

‘‘(1) Promptly repair, or compensate for,material damage resulting from subsidencecaused to any occupied residential dwellingand structures related thereto, or non-com-mercial building due to underground coalmining operations. Repair of damage shallinclude rehabilitation, restoration, or re-placement of the damaged occupied residen-tial dwelling and structures related thereto,or non-commercial building. Compensationshall be provided to the owner of the dam-aged occupied residential dwelling and struc-tures related thereto or non-commercialbuilding and shall be in the full amount ofthe diminution in value resulting from thesubsidence. Compensation may be accom-plished by the purchase, prior to mining, ofa noncancellable premium-prepaid insurancepolicy.

‘‘(2) Promptly replace any drinking, do-mestic, or residential water supply from awell or spring in existence prior to the appli-cation for a surface coal mining and rec-lamation permit, which has been affected bycontamination, diminution, or interruptionresulting from underground coal mining op-erations.Nothing in this section shall be construed toprohibit or interrupt underground coal min-ing operations.

‘‘(b) REGULATIONS.—Within one year afterthe date of enactment of this section, theSecretary shall, after providing notice andopportunity for public comment, promulgatefinal regulations to implement subsection(a).’’.

(2)(A) The Secretary of the Interior shallreview existing requirements related to un-derground coal mine subsidence and naturalgas and petroleum pipeline safety. Such re-view shall consider the following with re-spect to subsidence: notification; mitigation;coordination; requirements of the NaturalGas Pipeline Safety Act and the HazardousLiquid Pipeline Safety Act; and the status ofFederal, State and local laws, as well ascommon law, with respect to prevention ormitigation of damage from subsidence.

(B) The review shall also include a surveyof the status of Federal, State, and locallaws, as well as common law, with respect tothe responsibilities of the relevant partiesfor costs resulting from damage due to sub-sidence or from mitigation efforts under-taken to prevent damage from subsidence.

(C) In conducting the review, the Secretaryof the Interior shall consult with the Sec-retary of Transportation, the Attorney Gen-eral of the United States, appropriate offi-cials of relevant States, and owners and rep-resentatives of natural gas and petroleumpipeline companies and coal companies.

(D) The Secretary of the Interior shall sub-mit a report detailing the results of the re-view to the Committee on Energy and Natu-ral Resources of the United States Senateand the Committee on Interior and InsularAffairs of the United States House of Rep-resentatives within 18 months of enactmentof this Act. Where appropriate, the Secretaryof the Interior shall commence a rulemakingto address any deficiencies in existing lawdetermined in the review under subpara-graph (A) regarding notification, coordina-tion and mitigation.

(b) VALID EXISTING RIGHTS.—During the 1-year period following the enactment of this

Act, in administering the provisions of theSurface Mining Control and ReclamationAct of 1977 regarding valid existing rights,the Secretary of the Interior shall continuein force and effect the policies of the Officeof Surface Mining as set forth in the Novem-ber 10, 1986 Statement of Policy published in51 Federal Register 41952.

(c) RESEARCH.—(1) Section 401(c)(6) of theSurface Mining Control and ReclamationAct of 1977 (30 U.S.C. 1231(c)(6)) is amended asfollows:

(A) Insert ‘‘, research, and demonstrationprojects’’ after ‘‘studies’’.

(B) Strike ‘‘to provide information, advice,and technical assistance, including researchand demonstration projects’’.

(2) Section 403(a) of the Surface MiningControl and Reclamation Act of 1977 (30U.S.C. 1233) is amended by striking para-graph (4) and renumber the subsequent para-graphs accordingly.

(3) Title VII of the Surface Mining Controland Reclamation Act of 1977 (30 U.S.C. 1291and following) is amended by adding the fol-lowing new section after section 720:‘‘SEC. 721. RESEARCH.

‘‘The Office of Surface Mining Reclamationand Enforcement is authorized to conductstudies, research and demonstration projectsrelating to the implementation of, and com-pliance with, title V of this Act, and providetechnical assistance to states for that pur-pose. Prior to approving any such studies, re-search or demonstration projects the Direc-tor, Office of Surface Mining Reclamationand Enforcement, shall first consult with theDirector, Bureau of Mines, and obtain a de-termination from such Director that the Bu-reau of Mines is not already conducting likeor similar studies, research or demonstrationprojects. Studies, research and demonstra-tion projects for the purposes of title IV ofthis Act shall only be conducted in accord-ance with section 401(c)(6).’’.

(d) COAL FORMATIONS.—(1) In furtheranceof the purposes of the Act of August 31, 1954(30 U.S.C. 551–558) the Secretary of the Inte-rior, acting through the Director of the Of-fice of Surface Mining Reclamation and En-forcement, shall, upon application by aState, enter into a cooperative agreementwith any such State that has an approvedabandoned mine reclamation program pursu-ant to section 405 of the Surface Mining Con-trol and Reclamation Act of 1977 to under-take the activities referred to in section 3(b)of the Act of August 31, 1954 (30 U.S.C.553(b)). The Secretary shall immediatelyenter into such cooperative agreement uponapplication by a State. Any such cooperativeagreement shall not be subject to review orapproval by the Appalachian Regional Devel-opment Commission.

(2) For the purposes of the cooperativeagreements entered into pursuant to para-graph (1), the requirements of section 5 ofthe Act of August 31, 1954 (30 U.S.C. 555) arehereby waived.

(3) Section 8 of the Act of August 31, 1954(30 U.S.C. 558) is amended by striking ‘‘not toexceed $500,000 annually,’’.

(e) TECHNICAL AMENDMENT.—Section403(b)(2) of the Surface Mining Control andReclamation Act of 1977 (30 U.S.C. 1233(b)(2))is amended by inserting ‘‘, or as the casemay be, the dates (and under the criteria) setforth under section 402(g)(4)(B)’’ after ‘‘1977’’in each instance such date appears.SEC. 2505. FEDERAL LIGNITE COAL ROYALTIES.

(a) COAL IN FORT UNION REGION.—Notwith-standing any other provision of law, or anyregulation or guideline issued thereunder,the Secretary of the Interior may determine,with respect to lignite coal in the FortUnion region, a lesser royalty than the roy-alty specified under section 7 of the MineralLeasing Act (30 U.S.C. 207). Any lesser roy-

alty granted under this section, or under sec-tion 39 of the Mineral Leasing Act (30 U.S.C.209) after March 29, 1990, for lignite coal inthe Fort Union region shall continue for aterm of at least 10 years from the effectivedate of such reduction.

(b) REVIEW AND EXTENSION.—Within 10years after the date of enactment of thisAct, the Secretary of the Interior shall re-view the effect of any royalty reduction pur-suant to subsection (a) on the production ofcoal. If the Secretary determines that suchroyalty reduction has had no significant ad-verse impact on coal production, upon a re-quest by a lignite coal operator in the FortUnion region, the Secretary may grant anadditional royalty reduction for a period of10 years, provided that the total term of thereduced royalty granted pursuant to sub-section (a) and this subsection for a tract orlease does not exceed a period of 20 years.SEC. 2506. ACQUIRED FEDERAL LAND MINERAL

RECEIPTS MANAGEMENT.(a) MINERAL RECEIPTS UNDER ACQUIRED

LANDS ACT.—Section 6 of the Mineral Leas-ing Act for Acquired Lands (30 U.S.C. 355) isamended by inserting ‘‘(a)’’ before the firstsentence and by adding the following newsubsection at the end thereof:

‘‘(b) Notwithstanding any other provisionof law, any payment to a State under thissection shall be made by the Secretary of theInterior and shall be made not later than thelast business day of the month following themonth in which such moneys or associatedreports are received by the Secretary of theInterior, whichever is later. The Secretaryshall pay interest to a State on any amountnot paid to the State within that time at therate prescribed under section 111 of the Fed-eral Oil and Gas Royalty Management Act of1982 from the date payment was required tobe made under this subsection until the datepayment is made.’’.

(b) AUTHORITY TO MANAGE CERTAIN MIN-ERAL LEASES.—The Mineral Leasing Act forAcquired Lands (30 U.S.C. 351 and following)is amended by adding the following new sec-tion at the end thereof:‘‘SEC. 11. AUTHORITY TO MANAGE CERTAIN MIN-

ERAL LEASES.‘‘Each department, agency and instrumen-

tality of the United States which admin-isters lands acquired by the United Stateswith one or more existing mineral lease shalltransfer to the Secretary of the Interior theauthority to administer such lease and tocollect all receipts due and payable to theUnited States under the lease. In the case oflands acquired on or before the date of theenactment of this section, the authority toadminister the leases and collect receiptsshall be transferred to the Secretary of theInterior as expeditiously as practicable afterthe date of enactment of this section. In thecase of lands acquired after the date of en-actment of this section, such authority shallbe vested with the Secretary at the time ofacquisition. The provisions of section 6 ofthis Act shall apply to all receipts derivedfrom such leases where such receipts are dueand payable to the United States under thelease in the same manner as such provisionsapply to receipts derived from leases issuedunder the authority of this Act. For purposesof this section, the term ‘existing minerallease’ means any lease in existence at thetime land is acquired by the United States.Nothing in this section shall be construed toaffect the existing surface management au-thority of any Federal agency.’’.

(c) CLARIFICATION.—Section 7 of the Act ofAugust 18, 1941, ch. 377 (33 U.S.C. 701c-3) isamended by adding the following sentence atthe end thereof: ‘‘For the purposes of thissection, the term ‘money’ includes, but isnot limited to, such bonuses, royalties andrentals (and any interest or other charge


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1992 T121.25paid to the United States by reason of thelate payment of any royalty, rent, bonus orother amount due to the United States) paidto the United States from a mineral leaseissued under the authority of the MineralLeasing Act for Acquired Lands or paid tothe United States from a mineral lease in ex-istence at the time of the acquisition of theland by the United States.’’.SEC. 2507. RESERVED OIL AND GAS.

(a) IN GENERAL.—Section 17(b) of the Min-eral Leasing Act (30 U.S.C. 226(b)) is amendedas follows—

(1) In paragraph (1)(A), strike out ‘‘underparagraph (2)’’ and insert in lieu thereof‘‘under paragraphs (2) and (3)’’.

(2) Adding at the end thereof the followingnew paragraph:

‘‘(3)(A) If the United States held a vestedfuture interest in a mineral estate that, im-mediately prior to becoming a vested presentinterest, was subject to a lease under whichoil or gas was being produced, or had a wellcapable of producing, in paying quantities atan annual average production volume perwell per day of either not more than 15 bar-rels per day of oil or condensate, or not morethan 60,000 cubic feet of gas, the holder of thelease may elect to continue the lease as anoncompetitive lease under subsection (c)(1).

‘‘(B) An election under this paragraph is ef-fective—

‘‘(i) in the case of an interest which vestedafter January 1, 1990, and on or before thedate of enactment of this paragraph, if theelection is made before the date that is 1year after the date of enactment of thisparagraph;

‘‘(ii) in the case of an interest which vestswithin 1 year after the date of enactment ofthis paragraph, if the election is made beforethe date that is 2 years after the date of en-actment of this paragraph; and

‘‘(iii) in any case other than those de-scribed in clause (i) or (ii), if the election ismade prior to the interest becoming a vestedpresent interest.

‘‘(C) Notwithstanding the consent require-ment referenced in section 3 of the MineralLeasing Act for Acquired Lands (30 U.S.C.352), the Secretary shall issue a noncompeti-tive lease under subsection (c)(1) to a holderwho makes an election under subparagraph(A) and who is qualified to hold a lease underthis Act. Such lease shall be subject to allterms and conditions under this Act that areapplicable to leases issued under subsection(c)(1).

‘‘(D) A lease issued pursuant to this para-graph shall continue so long as oil or gascontinues to be produced in paying quan-tities.

‘‘(E) This paragraph shall apply only tothose lands under the administration of theSecretary of Agriculture where the UnitedStates acquired an interest in such landspursuant to the Act of March 1, 1911 (36 Stat.961 and following).’’.

(b) EFFECTIVE DATE.—The amendmentsmade by subsection (a) apply with respect tothose mineral estates in which the interestof the United States becomes a vestedpresent interest after January 1, 1990.SEC. 2508. CERTAIN OUTSTANDING OIL AND GAS.

(a) IN GENERAL.—Section 17 of the MineralLeasing Act (30 U.S.C. 226) is amended byadding the following new subsection aftersubsection (n):

‘‘(o) CERTAIN OUTSTANDING OIL AND GAS.—(1) Prior to the commencement of surface-disturbing activities relating to the develop-ment of oil and gas deposits on lands de-scribed under paragraph (5), the Secretary ofAgriculture shall require, pursuant to regu-lations promulgated by the Secretary, thatsuch activities be subject to terms and con-ditions as provided under paragraph (2).

‘‘(2) The terms and conditions referred toin paragraph (1) shall require that reasonable

advance notice be furnished to the Secretaryof Agriculture at least 60 days prior to thecommencement of surface disturbing activi-ties.

‘‘(3) Advance notice under paragraph (2)shall include each of the following items ofinformation:

‘‘(A) A designated field representative.‘‘(B) A map showing the location and di-

mensions of all improvements, including butnot limited to, well sites and road and pipe-line accesses.

‘‘(C) A plan of operations, of an interimcharacter if necessary, setting forth a sched-ule for construction and drilling.

‘‘(D) A plan of erosion and sedimentationcontrol.

‘‘(E) Proof of ownership of mineral title.Nothing in this subsection shall be construedto affect any authority of the State in whichthe lands concerned are located to imposeany requirements with respect to such oiland gas operations.

‘‘(4) The person proposing to develop oiland gas deposits on lands described underparagraph (5) shall either—

‘‘(A) permit the Secretary to market mer-chantable timber owned by the UnitedStates on lands subject to such activities; or

‘‘(B) arrange to purchase merchantabletimber on lands subject to such surface dis-turbing activities from the Secretary of Ag-riculture, or otherwise arrange for the dis-position of such merchantable timber, uponsuch terms and upon such advance notice ofthe items referred to in subparagraphs (A)through (E) of paragraph (3) as the Secretarymay accept.

‘‘(5)(A) The lands referred to in this sub-section are those lands referenced in sub-paragraph (B) which are under the adminis-tration of the Secretary of Agriculturewhere the United States acquired an interestin such lands pursuant to the Act of March1, 1911 (36 Stat. 961 and following), but doesnot have an interest in oil and gas depositsthat may be present under such lands. Thissubsection does not apply to any such landswhere, under the provisions of its acquisitionof an interest in the lands, the United Statesis to acquire any oil and gas deposits thatmay be present under such lands in the fu-ture but such interest has not yet vestedwith the United States.

‘‘(B) This subsection shall only apply inthe Allegheny National Forest.’’.

(b) REGULATIONS.—Within 90 days after theenactment of this Act the Secretary of Agri-culture shall promulgate regulations to im-plement the amendment made by subsection(a).SEC. 2509. FEDERAL ONSHORE OIL AND GAS

LEASING.The first sentence of section 17(e) of the

Mineral Leasing Act (30 U.S.C. 226(e)) isamended by striking the phrase startingwith ‘‘Competitive leases’’ and ending with‘‘ten years: Provided, however,’’ and insertingin lieu thereof the following: ‘‘Competitiveand noncompetitive leases issued under thissection shall be for a primary term of 10years: Provided, however,’’.SEC. 2510. OIL PLACER CLAIMS.

Notwithstanding any other provision oflaw, in furtherance of the purposes of theAct of February 11, 1897, commonly referredto as the Oil Placer Act, and section 37 of theMineral Leasing Act, the Secretary of the In-terior is authorized and directed to, within90 days after the enactment of this Act, (1)convey by quit-claim deed to the owner orowners, or (2) separately and as an alter-native, disclaim and relinquish by a docu-ment in any form suitable for recordation inthe county within which the lands are situ-ated, all right, title and interest or claim ofinterest of the United States to those landsin the counties of Hot Springs, Park and

Washakie in the State of Wyoming, held pur-suant to the Act of February 11, 1897, andwhich are currently producing covered sub-stances under a cooperative or unit plan ofdevelopment.SEC. 2511. OIL SHALE CLAIMS.

(a) NOTICE.—Notwithstanding any otherprovision of law, within 60 days from thedate of enactment of this Act, the Secretaryof the Interior shall provide notice to eachholder of an unpatented oil shale miningclaim of the requirements of this Act. Suchnotice shall be made by registered mail andby publication in a newspaper of general cir-culation in the areas in which such claimsare located.

(b) FULL PATENT.—The holder of a valid oilshale mining claim who has filed a patentapplication and received first half final cer-tificate for patent by date of enactment ofthis Act, may obtain a patent pursuant tothe general mining laws of the UnitedStates.

(c) PATENT.—(1) Notwithstanding any otherprovision of law, the holder of a valid oilshale mining claim who has filed a patentapplication which has been accepted forprocessing by the Department of the Interiorby the date of enactment of this Act but hasnot received first half final certificate forpatent by the date of enactment of this Actmay receive only a patent limited to the oilshale and associated minerals, upon paymentof $2.50 per acre. Title to the surface and toall other minerals, including, but not limitedto, oil, gas, and coal, shall remain in theUnited States. Patents issued pursuant tothis subsection shall provide for surface useto the same extent as is provided under ap-plicable law prior to enactment of this Actwith respect to oil shale mining claims, sub-ject to the requirements of subsection (f).

(2) Maintenance of claims referred to inthis subsection prior to patent issuance shallbe in accordance with the requirements ofapplicable law prior to enactment of thisAct.

(3) Any holder of a valid oil shale miningclaim referred to in this subsection maymaintain such claim in accordance with therequirements set forth in subsection (e)(2) inlieu of receiving a patent under this section.

(4) Notwithstanding any other provision oflaw, any person referred to in paragraph (1)who obtains compensation from the UnitedStates as a result of the application of thissection being declared to be a taking of prop-erty within the meaning of the Fifth Amend-ment to the United States Constitution, mayobtain a full patent upon tender to the Sec-retary of the amount of such compensation,not including interest, and upon the receiptof such amount, the Secretary shall conveyto such person a patent in the form and man-ner provided under the general mining lawsof the United States. Such tender may onlybe made within 3 years of obtaining suchcompensation.

(d) ELECTION.—(1) Notwithstanding anyother provision of law, within 180 days fromthe date of which the Secretary provided no-tice under subsection (a), a holder of a validoil shale mining claim for which a patent ap-plication was not filed and accepted for proc-essing by the Department of the Interiorprior to the date of enactment of this Actshall file with the Secretary a notice of elec-tion to—

(A) proceed to limited patent as providedin subsection (e)(1); or

(B) maintain the unpatented claim as pro-vided for in subsection (e)(2).

(2) Failure to file the notice of election asrequired by paragraph (1) shall be deemedconclusively to constitute an abandonmentof the claim by operation of law.

(3) Any claim holder who elects to proceedunder paragraph (1)(A) must apply for a pat-

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OCTOBER 5T121.25ent within 2 years from the date of electionor notify the Secretary in writing prior toexpiration of the 2-year period of a decisionto maintain such claim as provided in para-graph (1)(B) or such claim shall be deemedconclusively to have been abandoned by op-eration of law.

(4) The provisions of this subsection shallbe in addition to the requirements of section314 of the Federal Land Policy and Manage-ment Act of 1976 (43 U.S.C. 1744).

(e) EFFECT OF ELECTION.—(1) Notwithstand-ing any other provisions of law, a claim hold-er subject to the election requirements ofsubsection (d) who elects to receive a limitedpatent shall receive title only to the oilshale associated minerals, upon payment offair market value for the oil shale and asso-ciated minerals. Title to the surface and toall other minerals, including, but not limitedto oil, gas, and coal, shall remain in theUnited States. Patents issued pursuant tothis subsection shall provide for surface useto the same extent as is provided under ap-plicable law prior to the enactment of thisAct with respect to oil shale mining claims,subject to the requirements of subsection (f).

(2) Notwithstanding any other provision oflaw, a claim holder referred to in subsection(c) or a claim holder subject to the electionrequirements of subsection (d) who main-tains or elects to maintain an upatentedclaim shall maintain such claim by comply-ing with the general mining laws of theUnited States, and with the provisions ofthis section, except that the claim holdershall no longer be required to perform an-nual labor, and instead shall pay to the Sec-retary $550 per claim per year for deposit asmiscellaneous receipts in the general fund ofthe Treasury, commencing with calendaryear 1993. Such fee shall accompany the fil-ing made by the claim holder with the Bu-reau of Land Management pursuant to sec-tion 314(a)(2) of the Federal Land Policy andManagement Act (43 U.S.C. 1744(a)(2)).

(f) RECLAMATION.—In addition to other ap-plicable requirements, any person who holdsa limited patent or maintains a claim pursu-ant to this section shall be required to carryout reclamation as prescribed by the Sec-retary and to furnish a bond or other appro-priate financial guarantee in an amount suf-ficient to ensure adequate reclamation of thelands to be disturbed by any aspect of theproposed mining activities.

(g) REAFFIRMATION OF REQUIREMENTS.—Without comment on the adequacy of cur-rent or former standards for determining va-lidity of oil shale claims, Congress reaffirmsthe requirements of law that a patent mayissue only to persons who hold valid claimsand the need for careful review of any appli-cations.

(h) ISSUANCE OF PATENTS.—Notwithstand-ing any other provision of law, with respectto any oil shale mining claim located underthe general mining laws of the UnitedStates, no patent for such claim shall beissued except as provided by this section.SEC. 2512. HEALTH, SAFETY, AND MINING TECH-

NOLOGY RESEARCH PROGRAM.(a) HEALTH, SAFETY, AND MINING TECH-

NOLOGY RESEARCH PLAN.—(1) Every 5 years,the Secretary of the Interior, acting throughthe Director of the Bureau of Mines (herein-after in this section referred to as the ‘‘Di-rector’’), shall develop a Plan for Health,Safety, and Mining Technology Research(hereinafter in this subsection referred to asthe ‘‘Plan’’).

(2) The Plan shall identify the goals andobjectives of the Health, Safety, and MiningTechnology program of the Bureau of Mines,and shall guide research and technology de-velopment under such program, over each 5-year period.

(3) In preparing the proposed Plan referredto in paragraph (1), the Director shall solicit

suggestions, comments and proposals for re-search and technology development projectsfrom the mining industry, labor, academiaand other concerned groups and individuals.

(b) TECHNICAL AMENDMENT.—For the pur-poses of section 501(b) of Public Law 91-173,as amended, activities in the field of coal orother mine health under such section shallalso be carried out by the Secretary of theInterior acting through the Director of theBureau of Mines. Nothing in this subsectionis intended to preclude or duplicate the on-going research activities of the Bureau ofMines on health hazards safety technologyor research conducted by the National Insti-tute of Occupational Safety and Health oncoal mine safety and health effects.SEC. 2513. ASSISTANCE TO SMALL COAL OPERA-

TORS.(a) ASSISTANCE.—Section 507(c) of the Sur-

face Mining Control and Reclamation Act of1977 (30 U.S.C. 1257(c)) is amended to read asfollows:

‘‘(c) ASSISTANCE TO SMALL COAL OPERA-TORS.—(1) If the regulatory authority findsthat the probable total annual production atall locations of a coal surface mining opera-tor will not exceed 300,000 tons, the cost ofthe following activities, which shall be per-formed by a qualified public or private lab-oratory or such other public or private quali-fied entity designated by the regulatory au-thority, shall be assumed by the regulatoryauthority upon the written request of the op-erator in connection with a permit applica-tion:

‘‘(A) The determination of probable hydro-logic consequences required by subsection(b)(11), including the engineering analysesand designs necessary for the determination.

‘‘(B) The development of cross-sectionmaps and plans required by subsection(b)(14).

‘‘(C) The geologic drilling and statement ofresults of test borings and core samplings re-quired by subsection (b)(15).

‘‘(D) The collection of archaeological infor-mation required by subsection (b)(13) andany other archaeological and historical in-formation required by the regulatory author-ity, and the preparation of plans neces-sitated thereby.

‘‘(E) Pre-blast surveys required by section515(b)(15)(E).

‘‘(F) The collection of site-specific resourceinformation and production of protectionand enhancement plans for fish and wildlifehabitats and other environmental values re-quired by the regulatory authority underthis Act.

‘‘(2) The Secretary shall provide or assumethe cost of training coal operators that meetthe qualifications stated in paragraph (1)concerning the preparation of permit appli-cations and compliance with the regulatoryprogram, and shall ensure that qualified coaloperators are aware of the assistance avail-able under this subsection.’’.

(b) REIMBURSEMENT OF COSTS.—Section 507of the Surface Mining Control and Reclama-tion Act of 1977 (30 U.S.C. 1257) is amended byadding at the end thereof the following newsubsection:

‘‘(h) REIMBURSEMENT OF COSTS.—A coal op-erator that has received assistance pursuantto subsection (c) (1) or (2) shall reimburse theregulatory authority for the cost of the serv-ices rendered if the program administratorfinds that the operator’s actual and attrib-uted annual production of coal for all loca-tions exceeds 300,000 tons during the 12months immediately following the date onwhich the operator is issued the surface coalmining and reclamation permit.’’.SEC. 2514. SURFACE MINING REGULATIONS.

Section 710 of the Surface Mining Controland Reclamation Act of 1977 (30 U.S.C. 1300)is amended by adding at the end the follow-ing new subsection:

‘‘(i) GRANTS.—The Secretary shall makegrants to the Navajo, Hopi, Northern Chey-enne, and Crow tribes to assist such tribes indeveloping regulations and programs for reg-ulating surface coal mining and reclamationoperations on Indian lands, except that noth-ing in this subsection may be construed asproviding such tribes with the authoritiesset forth under section 503. Grants madeunder this subsection shall be used to estab-lish an office of surface mining regulationfor each such tribe. Each such office shall—

‘‘(1) develop tribal regulations and programpolicies with respect to surface mining;

‘‘(2) assist the Office of Surface MiningReclamation and Enforcement establishedby section 201 in the inspection and enforce-ment of surface mining activities on Indianlands, including, but not limited to, permit-ting, mine plan review, and bond release; and

‘‘(3) sponsor employment training and edu-cation in the area of mining and mineral re-sources.’’.SEC. 2515. AMENDMENT TO SURFACE MINING

ACT.Section 402(b) of the Surface Mining Con-

trol and Reclamation Act of 1977 (30 U.S.C.1232(b)) is amended by striking ‘‘1995’’ and in-serting in lieu thereof ‘‘2004, after whichtime the fee shall be established at a rate tocontinue to provide for the deposit referredto in subsection (h)’’.TITLE XXVI—INDIAN ENERGY RESOURCESSEC. 2601. DEFINITIONS.

For purposes of this title—(1) the term ‘‘Indian tribe’’ means any In-

dian tribe, band, nation, or other organizedgroup or community, including any AlaskaNative village or regional or village corpora-tion as defined in or established pursuant tothe Alaska Native Claims Settlement Act (43U.S.C. 1601 et seq.), which is recognized as el-igible for the special programs and servicesprovided by the United States to Indians be-cause of their status as Indians; and

(2) the term ‘‘Indian reservation’’ includesIndian reservations; public domain Indian al-lotments; former Indian reservations inOklahoma; land held by incorporated Nativegroups, regional corporations, and villagecorporations under the provisions of theAlaska Native Claims Settlement Act (43U.S.C. 1601 et seq.); and dependent Indiancommunities within the borders of theUnited States whether within the original orsubsequently acquired territory thereof, andwhether within or without the limits of aState.SEC. 2602. TRIBAL CONSULTATION.

In implementing the provisions of this Act,the Secretary of Energy shall involve andconsult with Indian tribes to the maximumextent possible and where appropriate andshall do so in a manner that is consistentwith the Federal trust and the Government-to-Government relationships between Indiantribes and the Federal Government.SEC. 2603. PROMOTING ENERGY RESOURCE DE-

VELOPMENT AND ENERGY VERTI-CAL INTEGRATION ON INDIAN RES-ERVATIONS.

(a) DEMONSTRATION PROGRAMS.—The Sec-retary of Energy, in consultation with theSecretary of the Interior, shall establish andimplement a demonstration program to as-sist Indian tribes in pursuing energy self-suf-ficiency and to promote the development ofa vertically integrated energy industry onIndian reservations, in order to increase de-velopment of the substantial energy re-sources located on such Indian reservations.Such program shall include, but not be lim-ited to, the following components:

(1) The Secretary shall provide develop-ment grants to Indian tribes or to joint ven-tures which are 51 percent or more con-trolled by an Indian tribe to assist Indiantribes in obtaining the managerial and tech-


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1992 T121.25nical capability needed to develop the energyresources on Indian reservations. Suchgrants shall include provisions for manage-ment training for tribal or village members,improving the technical capacity of the In-dian tribe, and the reduction of tribal unem-ployment. Each grant shall be for a period of3 years.

(2) The Secretary shall provide grants, notto exceed 50 percent of the project costs, forvertical integration projects. For purposes ofthis paragraph, the term ‘‘vertical integra-tion project’’ means a project that promotesthe vertical integration of the energy re-sources on an Indian reservation, so that theenergy resources are used or processed onsuch Indian reservation. Such term includes,but is not limited to, projects involving solarand wind energy, oil refineries, the genera-tion and transmission of electricity,hydroelectricity, cogeneration, natural gasdistribution, and clean, innovative uses ofcoal.

(3) The Secretary shall provide technicalassistance (and such other assistance as isappropriate) to Indian tribes for energy re-source development and to promote the ver-tical integration of energy resources on In-dian reservations.

(b) LOW INTEREST LOANS.—(1) IN GENERAL.—The Secretary shall estab-

lish a program for making low interest loansto Indian tribes. Such loans shall be used ex-clusively by Indian tribes in the promotionof energy resource development and verticalintegration on Indian reservations.

(2) TERMS.—The Secretary shall establishreasonable terms for loans made under thissection which are to be used to carry out thepurposes of this section.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated—

(1) $10,000,000 for each of the fiscal years1994, 1995, 1996, and 1997 to carry out the pur-poses of subsection (a)(1);

(2) $10,000,000 for each of the fiscal years1994, 1995, 1996, and 1997 to carry out the pur-poses of subsection (a)(2); and

(3) $10,000,000 for each of the fiscal years1994, 1995, 1996, and 1997 to carry out the pur-poses of subsection (b).

SEC. 2604. INDIAN ENERGY RESOURCE REGULA-TION.

(a) GRANTS.—The Secretary of the Interioris authorized to make annual grants to In-dian tribes for the purpose of assisting In-dian tribes in the development, administra-tion, implementation, and enforcement oftribal laws and regulations governing the de-velopment of energy resources on Indian res-ervations.

(b) PURPOSE.—The purposes for whichfunds provided under a grant awarded undersubsection (a) may be used include, but arenot limited to—

(1) the training and education of employeesresponsible for enforcing or monitoring com-pliance with Federal and tribal laws and reg-ulations;

(2) the development of tribal inventories ofenergy resources;

(3) the development of tribal laws and reg-ulations;

(4) the development of tribal legal and gov-ernmental infrastructure to regulate envi-ronmental quality pursuant to Federal andtribal laws; and

(5) the enforcement and monitoring of Fed-eral and tribal laws and regulations.

(c) OTHER ASSISTANCE.—The Secretary ofthe Interior and the Secretary of Energyshall cooperate with and provide assistanceto Indian tribes for the purpose of assistingIndian tribes in the development, adminis-tration, and enforcement of tribal programs.Such cooperation and assistance shall in-clude the following:

(1) Technical assistance and training, in-cluding the provision of necessary circularsand training materials.

(2) Assistance in the preparation and main-tenance of a continuing inventory of infor-mation on tribal energy resources and tribaloperations. In providing assistance underthis paragraph, Federal departments andagencies shall make available to Indiantribes all relevant data concerning tribal en-ergy resource development consistent withapplicable laws regarding disclosure of pro-prietary and confidential information.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated$10,000,000 for each of the fiscal years 1994,1995, 1996, and 1997 to carry out the purposesof this section.SEC. 2605. INDIAN ENERGY RESOURCE COMMIS-

SION.(a) ESTABLISHMENT.—There is hereby es-

tablished the Indian Energy Resource Com-mission (hereafter in this section referred toas the ‘‘Commission’’).

(b) MEMBERSHIP.—The Commission shallconsist of—

(1) 8 members appointed by the Secretaryof the Interior from recommendations sub-mitted by Indian tribes with developable en-ergy resources, at least 4 of whom shall beelected tribal leaders;

(2) 3 members appointed by the Secretaryof the Interior from recommendations sub-mitted by the Governors of States that haveIndian reservations with developable energyresources;

(3) 2 members appointed by the Secretaryof the Interior from among individuals in theprivate sector with expertise in tribal andState taxation of energy resources;

(4) 2 members appointed by the Secretaryof the Interior from individuals with exper-tise in oil and gas royalty management ad-ministration, including auditing and ac-counting;

(5) 2 members appointed by the Secretaryof the Interior from individuals in the pri-vate sector with expertise in energy develop-ment;

(6) 1 member appointed by the Secretary ofthe Interior from recommendations submit-ted by National environmental organiza-tions;

(7) the Secretary of the Interior, or his des-ignee; and

(8) the Secretary of Energy, or his des-ignee.

(c) APPOINTMENTS.—Members of the Com-mission shall be appointed not later than 60days after the date of the enactment of thistitle.

(d) VACANCIES.—A vacancy in the Commis-sion shall be filled in the same manner as theoriginal appointment was made. A vacancyin the Commission shall not affect the pow-ers of the Commission.

(e) CHAIRPERSON.—The members of theCommission shall elect a Chairperson fromamong the members of the Commission.

(f) QUORUM.—Eleven members of the Com-mission shall constitute a quorum, but alesser number may hold hearings.

(g) ORGANIZATION MEETING.—The Commis-sion shall hold an organizational meeting toestablish the rules and procedures of theCommission not later than 30 days after themembers are first appointed to the Commis-sion.

(h) COMPENSATION.—Each member of theCommission who is not an officer or em-ployee of the United States shall be com-pensated at a rate established by the Com-mission, not to exceed the rate of basic paypayable for level IV of the Executive Sched-ule under section 5315 of title 5, UnitedStates Code, for each day (including traveltime) during which such member is engagedin the actual performance of duties as a

member of the Commission. Each member ofthe Commission who is an officer or em-ployee of the United States shall receive noadditional compensation.

(i) TRAVEL.—While away from their homesor regular places of business in the perform-ance of duties for the Commission, all mem-bers of the Commission shall be allowedtravel expenses, including per diem in lieu ofsubsistence, at a rate established by theCommission not to exceed the rates author-ized for employees under sections 5702 and5703 of title 5, United States Code.

(j) COMMISSION STAFF.—(1) EXECUTIVE DIRECTOR.—The Commission

shall appoint an Executive Director whoshall be compensated at a rate established bythe Commission not to exceed the rate ofbasic pay payable for level V of the Execu-tive Schedule under section 5316 of title 5,United States Code.

(2) ADDITIONAL PERSONNEL.—With the ap-proval of the Commission, the Executive Di-rector may appoint and fix the compensationof such additional personnel as the ExecutiveDirector considers necessary to carry out theduties of the Commission. Such appoint-ments shall be made in accordance with theprovisions of title 5, United States Code, gov-erning appointments in the competitiveservice, but at rates not to exceed the rate ofbasic pay payable for level 15 of the GeneralSchedule.

(3) EXPERTS AND CONSULTANTS.—Subject tosuch rules as may be issued by the Commis-sion, the Chairperson may procure tem-porary and intermittent services of expertsand consultants to the same extent as it au-thorized by section 3109 of title 5, UnitedStates Code, but at rates not to exceed $200a day for individuals.

(4) PERSONNEL DETAIL AUTHORIZED.—Uponthe request of the Chairperson, the head ofany Federal agency is authorized to detail,on a reimbursable basis, any of the personnelof such agency to the Commission to assistthe Commission in carrying out its dutiesunder this title. Such detail shall be withoutinterruption or loss of civil service status orprivilege.

(k) DUTIES OF THE COMMISSION.—The Com-mission shall—

(1) develop proposals to address the dualtaxation by Indian tribes and States of theextraction of mineral resources on Indianreservations;

(2) make recommendations to improve themanagement, administration, accountingand auditing of royalties associated with theproduction of oil and gas on Indian reserva-tions;

(3) develop alternatives for the collectionand distribution of royalties associated withproduction of oil and gas on Indian reserva-tions;

(4) develop proposals on incentives to fos-ter the development of energy resources onIndian reservations;

(5) identify barriers or obstacles to the de-velopment of energy resources on Indian res-ervations, and make recommendations de-signed to foster the development of energyresources on Indian reservations and pro-mote economic development;

(6) develop proposals for the promotion ofvertical integration of the development ofenergy resources on Indian reservations; and

(7) develop proposals on taxation incen-tives to foster the development of energy re-sources on Indian reservations including, butnot limited to, investment tax credits andenterprise zone credits.

(l) POWERS OF THE COMMISSION.—The pow-ers of the Commission shall include the fol-lowing:

(1) For the purpose of carrying out its du-ties under this section, the Commission mayhold hearings, take testimony, and receiveevidence at such times and places as the

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OCTOBER 5T121.25Commission considers appropriate. The Com-mission may administer oaths or affirma-tions to witnesses appearing before the Com-mission.

(2) Any member or employee of the Com-mission may, if authorized by the Commis-sion, take any action which the Commissionis authorized to take by this section.

(3) The Commission may secure directlyfrom any Federal agency such informationas may be necessary to enable the Commis-sion to carry out its duties under this sec-tion.

(m) COMMISSION REPORT.—(1) IN GENERAL.—The Commission shall,

within 12 months after funds are made avail-able to carry out this section, prepare andtransmit to the President, the Committee onInterior and Insular Affairs of the House ofRepresentatives, the Select Committee onIndian Affairs of the Senate, and the Com-mittee on Energy and Natural Resources ofthe Senate, a report containing the rec-ommendations and proposals specified insubsection (k).

(2) REVIEW AND COMMENT.—Prior to submis-sion of the report required under this sec-tion, the Chairman shall circulate a draft ofthe report to Indian tribes and States thathave Indian reservations with developableenergy resources and other interested tribesand States for review and comment.

(n) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Commission $1,000,000 to carry out thissection. Such sum shall remain available,without fiscal year limitation, until ex-pended.

(o) TERMINATION.—The Commission shallterminate 30 days after submitting the finalreport required by subsection (m).SEC. 2606. TRIBAL GOVERNMENT ENERGY AS-

SISTANCE PROGRAM.(a) FINANCIAL ASSISTANCE.—The Secretary

may grant financial assistance to Indiantribal governments, or private sector personsworking in cooperation with Indian tribalgovernments, to carry out projects to evalu-ate the feasibility of, develop options for,and encourage the adoption of energy effi-ciency and renewable energy projects on In-dian reservations. Such grants may includethe costs of technical assistance in resourceassessment, feasibility analysis, technologytransfer, and the resolution of other tech-nical, financial, or management issues iden-tified by the applicants for such grants.

(b) CONDITIONS.—Any applicant for finan-cial assistance under this section must evi-dence coordination and cooperation with,and support from, local educational institu-tions and the affected local energy institu-tions.

(c) CONSIDERATIONS.—In determining theamount of financial assistance to be providedfor a proposed project, the Secretary shallconsider—

(1) the extent of involvement of local edu-cational institutions and local energy insti-tutions;

(2) the ease and costs of operation andmaintenance of any project contemplated asa part of the project;

(3) whether the measure will contributesignificantly to the development, or thequality of the environment, of the affectedIndian reservations; and

(4) any other factors which the Secretarymay determine to be relevant to a particularproject.

(d) COST-SHARE.—With the exception ofgrants awarded for the purpose of feasibilitystudies, the Secretary shall require at least20 percent of the costs of any project underthis section to be provided from non-Federalsources, unless the grant recipient is a for-profit private sector institution, in whichcase the Secretary shall require at least 50

percent of the costs of any project to be pro-vided from non-Federal sources.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as are necessary for the developmentand implementation of the program estab-lished by this section.

TITLE XXVII—INSULAR AREAS ENERGYSECURITY

SEC. 2701. INSULAR AREAS ENERGY ASSISTANCEPROGRAM.

Section 604 of the Act entitled ‘‘An Act toauthorize appropriations for certain insularareas of the United States, and for other pur-poses’’, Public Law 96–597, as amended byPublic Law 98–213 (48 U.S.C. 1492), is amendedby adding at the end the following new sub-section:

‘‘(g) FINANCIAL ASSISTANCE.—(1) The Sec-retary of Energy may grant financial assist-ance, not to exceed $2,000,000 annually, to in-sular area governments or private sector per-sons working in cooperation with insulararea governments to carry out projects toevaluate the feasibility of, develop optionsfor, and encourage the adoption of energy ef-ficiency and renewable energy measureswhich reduce the dependency of the insularareas on imported fuels, improve the qualityof the environment, and promote develop-ment in the insular areas.

‘‘(2) Any applicant for financial assistanceunder this subsection must evidence coordi-nation and cooperation with, and supportfrom, the affected local energy institutions.

‘‘(3) In determining the amount of finan-cial assistance to be provided for a proposedproject, the Secretary shall consider—

‘‘(A) whether the measure will reduce therelative dependence of the insular area onimported fuels;

‘‘(B) the ease and costs of operation andmaintenance of any facilities contemplatedas a part of the project;

‘‘(C) whether the project will rely on theuse of conservation measures or indigenous,renewable energy resources that were identi-fied in the 1982 Territorial Energy Assess-ment or that are identified by the Secretaryas consistent with the purposes of this sub-section;

‘‘(D) whether the measure will contributesignificantly to development and the qualityof the environment in the insular area; and

‘‘(E) any other factors which the Secretarymay determine to be relevant to a particularproject.

‘‘(4) Notwithstanding the requirements ofsection 501(d) of Public Law 95–134 (48 U.S.C.1469a(d)), the Secretary shall require at least20 percent of the costs of any project underthis subsection to be provided from non-Fed-eral sources. Such cost sharing may be in theform of in-kind services, donated equipment,or any combination thereof.

‘‘(5) For the purposes of this subsection—‘‘(A) the term ‘insular area’ means Amer-

ican Samoa, the Commonwealth of theNorthern Mariana Islands, the Common-wealth of Puerto Rico, the Federated Statesof Micronesia, Guam, the Republic of theMarshall Islands, the Republic of Palau, andthe Virgin Islands; and

‘‘(B) the term ‘1982 Territorial Energy As-sessment’ means the comprehensive energyplan prepared by the Secretary of Energypursuant to subsection (c).’’.SEC. 2702. DEFINITION.

For amendment of the definition of theterm ‘‘State’’ for purposes of the nuclearwaste negotiation provisions of title IV ofthe Nuclear Waste Policy Act of 1982 (42U.S.C. 10241 et seq.), see section 802(b).SEC. 2703. ELECTRICITY REQUIREMENTS IN

TRUST TERRITORY OF THE PACIFICISLANDS.

Not later than 3 months after the comple-tion of the Palau National Master Develop-

ment Plan developed pursuant to the Depart-ment of the Interior Secretary’s Order No.3142, the Secretary of the Interior shall, inconsultation with the Government of Palau,submit a plan to the Committee on Energyand Natural Resources of the Senate and theCommittee on Interior and Insular Affairs ofthe House of Representatives to provide elec-tric service in Palau that is consistent withdeterminations made in developing thePalau National Master Development Plan,with regard to the need for and financing andscheduling of the availability of such serv-ice.SEC. 2704. PCB CLEANUP IN MARSHALL ISLANDS

AND FEDERATED STATES OF MICRO-NESIA.

Section 105(h) of Public Law 99–239 isamended by adding at the end the followingnew paragraph:

‘‘(5) The programs and services of the Envi-ronmental Protection Agency regardingPCB’s shall, to the extent applicable, as ap-propriate, and in accordance with applicablelaw, be construed to be made available tosuch islands.’’.

TITLE XXVIII—NUCLEAR PLANTLICENSING

SEC. 2801. COMBINED LICENSES.Section 185 of Atomic Energy Act of 1954

(42 U.S.C. 2235) is amended—(1) in the heading for such section by add-

ing ‘‘and Operating Licenses’’ after ‘‘Per-mits’’;

(2) by adding a subsection designator ‘‘a.’’before ‘‘All applicants for licenses’’; and

(3) by adding at the end the following newsubsection:

‘‘b. After holding a public hearing undersection 189 a. (1)(A), the Commission shallissue to the applicant a combined construc-tion and operating license if the applicationcontains sufficient information to supportthe issuance of a combined license and theCommission determines that there is reason-able assurance that the facility will be con-structed and will operate in conformity withthe license, the provisions of this Act, andthe Commission’s rules and regulations. TheCommission shall identify within the com-bined license the inspections, tests, and anal-yses, including those applicable to emer-gency planning, that the licensee shall per-form, and the acceptance criteria that, ifmet, are necessary and sufficient to providereasonable assurance that the facility hasbeen constructed and will be operated in con-formity with the license, the provisions ofthis Act, and the Commission’s rules andregulations. Following issuance of the com-bined license, the Commission shall ensurethat the prescribed inspections, tests, andanalyses are performed and, prior to oper-ation of the facility, shall find that the pre-scribed acceptance criteria are met. Anyfinding made under this subsection shall notrequire a hearing except as provided in sec-tion 189 a. (1)(B).’’.SEC. 2802. POST-CONSTRUCTION HEARINGS ON

COMBINED LICENSES.Section 189 a. (1) of Atomic Energy Act of

1954 (42 U.S.C. 2239(a)(1)) is amended—(1) by adding a subparagraph designator

‘‘(A)’’ before ‘‘In any proceeding under thisAct,’’; and

(2) by adding after subparagraph (A) thefollowing new subparagraph:

‘‘(B)(i) Not less than 180 days before thedate scheduled for initial loading of fuel intoa plant by a licensee that has been issued acombined construction permit and operatinglicense under section 185 b., the Commissionshall publish in the Federal Register noticeof intended operation. That notice shall pro-vide that any person whose interest may beaffected by operation of the plant, may with-in 60 days request the Commission to hold ahearing on whether the facility as con-


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1992 T121.25structed complies, or on completion willcomply, with the acceptance criteria of thelicense.

‘‘(ii) A request for hearing under clause (i)shall show, prima facie, that one or more ofthe acceptance criteria in the combined li-cense have not been, or will not be met, andthe specific operational consequences of non-conformance that would be contrary to pro-viding reasonable assurance of adequate pro-tection of the public health and safety.

‘‘(iii) After receiving a request for a hear-ing under clause (i), the Commission expedi-tiously shall either deny or grant the re-quest. If the request is granted, the Commis-sion shall determine, after considering peti-tioners’ prima facie showing and any an-swers thereto, whether during a period of in-terim operation, there will be reasonable as-surance of adequate protection of the publichealth and safety. If the Commission deter-mines that there is such reasonable assur-ance, it shall allow operation during an in-terim period under the combined license.

‘‘(iv) The Commission, in its discretion,shall determine appropriate hearing proce-dures, whether informal or formal adjudica-tory, for any hearing under clause (i), andshall state its reasons therefor.

‘‘(v) The Commission shall, to the maxi-mum possible extent, render a decision onissues raised by the hearing request within180 days of the publication of the notice pro-vided by clause (i) or the anticipated date forinitial loading of fuel into the reactor,whichever is later. Commencement of oper-ation under a combined license is not subjectto subparagraph (A).’’.SEC. 2803. RULEMAKING.

The Nuclear Regulatory Commission shallmodify part 52 of title 10, Code of FederalRegulations, to conform with sections 185 b.and 189 a. (1)(B) of the Atomic Energy Act of1954, as added by sections 2801 and 2802 of thisAct, not later than 1 year after the date ofthe enactment of this Act.SEC. 2804. AMENDMENT OF A COMBINED LICENSE

PENDING A HEARING.Section 189 a. (2) of the Atomic Energy Act

of 1954 (42 U.S.C. 2239(a)(2)) is amended by in-serting ‘‘or any amendment to a combinedconstruction and operating license’’ after‘‘any amendment to an operating license’’each time it occurs.SEC. 2805. JUDICIAL REVIEW.

Section 189 b. of the Atomic Energy Act of1954 (42 U.S.C. 2239(b)) is amended by insert-ing ‘‘or any final order allowing or prohibit-ing a facility to begin operating under acombined construction and operating li-cense’’ before ‘‘shall be subject to judicial re-view’’.SEC. 2806. EFFECT ON PENDING PROCEEDINGS.

Sections 185 b. and 189 a. (1)(B) of theAtomic Energy Act of 1954, as added by sec-tions 2801 and 2802 of this Act, shall apply toall proceedings involving a combined licensefor which an application was filed after May8, 1991, under such sections.SEC. 2807. CONFORMING AMENDMENT.

The table of contents of the Atomic En-ergy Act of 1954 is amended by amending theitem related to section 185 to read as follows:‘‘Sec. 185. Construction Permits and Operat-

ing Licenses.’’.TITLE XXIX—ADDITIONAL NUCLEAR

ENERGY PROVISIONSSEC. 2901. STATE AUTHORITY TO REGULATE RA-

DIATION BELOW LEVEL OF NRCREGULATORY CONCERN.

(a) IN GENERAL.—The Atomic Energy Actof 1954 (42 U.S.C. 2011 et seq.) is amended byinserting after section 275 the following newsection:‘‘SEC. 276. STATE AUTHORITY TO REGULATE RA-

DIATION BELOW LEVEL OF REGU-LATORY CONCERN OF NUCLEARREGULATORY COMMISSION.

‘‘(a) IN GENERAL.—No provision of this Act,or of the Low-Level Radioactive Waste Pol-

icy Act, may be construed to prohibit or oth-erwise restrict the authority of any State toregulate, on the basis of radiological hazard,the disposal or off-site incineration of low-level radioactive waste, if the Nuclear Regu-latory Commission, after the date of the en-actment of the Energy Policy Act of 1992 ex-empts such waste from regulation.

‘‘(b) RELATION TO OTHER STATE AUTHOR-ITY.—This section may not be construed toimply preemption of existing State author-ity. Except as expressly provided in sub-section (a), this section may not be con-strued to confer on any State any additionalauthority to regulate activities licensed bythe Nuclear Regulatory Commission.

‘‘(c) DEFINITIONS.—For purposes of this sec-tion:

‘‘(1) The term ‘low-level radioactive waste’means radioactive material classified by theNuclear Regulatory Commission as low-levelradioactive waste on the date of the enact-ment of the Energy Policy Act of 1992.

‘‘(2) The term ‘off-site incineration’ meansany incineration of radioactive materials ata facility that is located off the site wheresuch materials were generated.

‘‘(3) The term ‘State’ means each of theseveral States, the District of Columbia, andany commonwealth, territory, or possessionof the United States.’’.

(b) REVOCATION OF RELATED NRC POLICYSTATEMENTS.—The policy statements of theNuclear Regulatory Commission published inthe Federal Register on July 3, 1990 (55 Fed.Reg. 27522) and August 29, 1986 (51 Fed. Reg.30839), relating to radioactive waste belowregulatory concern, shall have no effect afterthe date of the enactment of this Act.

(c) CONFORMING AMENDMENT.—The table ofcontents of the Atomic Energy Act of 1954 (42U.S.C. 2011 prec.) is amended by insertingafter the item relating to section 275 the fol-lowing new item:‘‘Sec. 276. State authority to regulate radi-

ation below level of regulatoryconcern of Nuclear RegulatoryCommission.’’.

SEC. 2902. EMPLOYEE PROTECTION FOR NU-CLEAR WHISTLEBLOWERS.

(a) INTERNAL WHISTLEBLOWERS; EMPLOY-ERS.—Section 210(a) of the Energy Reorga-nization Act of 1974 (42 U.S.C. 5851(a)) isamended—

(1) by inserting ‘‘(1)’’ after ‘‘SEC. 210. (a)’’;(2) by striking ‘‘, including’’ and all that

follows through ‘‘licensee or applicant,’’;(3) by inserting after the dash the follow-

ing new subparagraphs:‘‘(A) notified his employer of an alleged

violation of this Act or the Atomic EnergyAct of 1954 (42 U.S.C. 2011 et seq.);

‘‘(B) refused to engage in any practicemade unlawful by this Act or the Atomic En-ergy Act of 1954, if the employee has identi-fied the alleged illegality to the employer;

‘‘(C) testified before Congress or at anyFederal or State proceeding regarding anyprovision (or proposed provision) of this Actor the Atomic Energy Act of 1954;’’;

(4) by redesignating paragraphs (1) through(3) as subparagraphs (D) through (F), respec-tively; and


‘‘(2) For purposes of this section, the term‘employer’ includes—

‘‘(A) a licensee of the Commission or of anagreement State under section 274 of theAtomic Energy Act of 1954 (42 U.S.C. 2021);

‘‘(B) an applicant for a license from theCommission or such an agreement State;

‘‘(C) a contractor or subcontractor of sucha licensee or applicant; and

‘‘(D) a contractor or subcontractor of theDepartment of Energy that is indemnified bythe Department under section 170 d. of theAtomic Energy Act of 1954 (42 U.S.C. 2210(d)),

but such term shall not include any contrac-tor or subcontractor covered by ExecutiveOrder No. 12344.’’.

(b) TIME PERIOD FOR FILING COMPLAINT.—Section 210(b)(1) of the Energy Reorganiza-tion Act of 1974 (42 U.S.C. 5851(b)(1)) isamended by striking ‘‘thirty days’’ and in-serting ‘‘180 days’’.

(c) INTERIM RELIEF.—Section 210(b)(2)(A) ofthe Energy Reorganization Act of 1974 (42U.S.C. 5851(b)(2)(A)) is amended by insertingbefore the last sentence the following: ‘‘Uponthe conclusion of such hearing and theissuance of a recommended decision that thecomplaint has merit, the Secretary shallissue a preliminary order providing the reliefprescribed in subparagraph (B), but may notorder compensatory damages pending a finalorder.’’.

(d) AVOIDANCE OF FRIVOLOUS COMPLAINTS.—Section 210(b) of the Energy ReorganizationAct of 1974 (42 U.S.C. 5851(b)) is amended byadding at the end the following new para-graph:

‘‘(3)(A) The Secretary shall dismiss a com-plaint filed under paragraph (1), and shallnot conduct the investigation required underparagraph (2), unless the complainant hasmade a prima facie showing that any behav-ior described in subparagraphs (A) through(F) of subsection (a)(1) was a contributingfactor in the unfavorable personnel actionalleged in the complaint.

‘‘(B) Notwithstanding a finding by the Sec-retary that the complainant has made theshowing required by subparagraph (A), no in-vestigation required under paragraph (2)shall be conducted if the employer dem-onstrates, by clear and convincing evidence,that it would have taken the same unfavor-able personnel action in the absence of suchbehavior.

‘‘(C) The Secretary may determine that aviolation of subsection (a) has occurred onlyif the complainant has demonstrated thatany behavior described in subparagraphs (A)through (F) of subsection (a)(1) was a con-tributing factor in the unfavorable personnelaction alleged in the complaint.

‘‘(D) Relief may not be ordered under para-graph (2) if the employer demonstrates byclear and convincing evidence that it wouldhave taken the same unfavorable personnelaction in the absence of such behavior.’’.

(e) NONPREEMPTION.—Section 210 of the En-ergy Reorganization Act of 1974 (42 U.S.C.5851) is amended by adding at the end the fol-lowing new subsection:

‘‘(h) This section may not be construed toexpand, diminish, or otherwise affect anyright otherwise available to an employeeunder Federal or State law to redress theemployee’s discharge or other discrimina-tory action taken by the employer againstthe employee.’’.

(f) POSTING REQUIREMENT.—Section 210 ofthe Energy Reorganization Act of 1974 (42U.S.C. 5851) is further amended by adding atthe end the following new subsection:

‘‘(i) The provisions of this section shall beprominently posted in any place of employ-ment to which this section applies.’’.

(g) DUTY OF NRC TO INVESTIGATE SUB-STANTIVE ALLEGATIONS.—Section 210 of theEnergy Reorganization Act of 1974 (42 U.S.C.5851) is further amended by adding at the endthe following new subsection:

‘‘(j)(1) The Commission or the Departmentof Energy shall not delay taking appropriateaction with respect to an allegation of a sub-stantial safety hazard on the basis of—

‘‘(A) the filing of a complaint under sub-section (b)(1) arising from such allegation; or

JOURNAL OF THE

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OCTOBER 5T121.25‘‘(B) any investigation by the Secretary, or

other action, under this section in responseto such complaint.

‘‘(2) A determination by the Secretaryunder this section that a violation of sub-section (a) has not occurred shall not be con-sidered by the Commission or the Depart-ment of Energy in its determination ofwhether a substantial safety hazard exists.’’.

(h) TECHNICAL AND CONFORMING AMEND-MENTS.—

(1) The title heading of title II of the En-ergy Reorganization Act of 1974 (42 U.S.C.5841 et seq.) is amended to read as follows:‘‘TITLE II—NUCLEAR REGULATORY COM-

MISSION; NUCLEAR WHISTLEBLOWERPROTECTION’’.

(2) Section 210(b)(1) of the Energy Reorga-nization Act of 1974 (42 U.S.C. 5851(b)(1)) isamended—

(A) by striking ‘‘(hereinafter in this sub-section referred to as the ‘Secretary’)’’ andinserting ‘‘(in this section referred to as the‘Secretary’)’’; and

(B) by striking ‘‘and the Commission’’ andinserting ‘‘, the Commission, and the Depart-ment of Energy’’.

(3) The second of the two sections of theEnergy Reorganization Act of 1974 that isnumbered 210 (42 U.S.C. 5851) is redesignatedas section 211.

(i) APPLICABILITY.—The amendments madeby this section shall apply to claims filedunder section 211(b)(1) of the Energy Reorga-nization Act of 1974 (42 U.S.C. 5851(b)(1)) onor after the date of the enactment of thisAct.SEC. 2903. EXEMPTION OF CERTAIN RESEARCH

AND EDUCATIONAL LICENSEESFROM ANNUAL CHARGES.

(a) IN GENERAL.—Section 6101(c) of the Om-nibus Budget Reconciliation Act of 1990 (42U.S.C. 2214(c)) is amended—

(1) in paragraph (1), by striking ‘‘Any li-censee’’ and inserting ‘‘Except as provided inparagraph (4), any licensee’’; and


‘‘(4) EXEMPTION.—‘‘(A) IN GENERAL.—Paragraph (1) shall not

apply to the holder of any license for a feder-ally owned research reactor used primarilyfor educational training and academic re-search purposes.

‘‘(B) RESEARCH REACTOR.—For purposes ofsubparagraph (A), the term ‘research reac-tor’ means a nuclear reactor that—

‘‘(i) is licensed by the Nuclear RegulatoryCommission under section 104 c. of theAtomic Energy Act of 1954 (42 U.S.C. 2134(c))for operation at a thermal power level of 10megawatts or less; and

‘‘(ii) if so licensed for operation at a ther-mal power level of more than 1 megawatt,does not contain—

‘‘(I) a circulating loop through the core inwhich the licensee conducts fuel experi-ments;

‘‘(II) a liquid fuel loading; or‘‘(III) an experimental facility in the core

in excess of 16 square inches in cross-sec-tion.’’.

(b) APPLICABILITY.—The amendments madesubsection (a) shall apply to annual chargesassessed under section 6101(c) of the OmnibusBudget Reconciliation Act of 1990 for fiscalyear 1992 or any succeeding fiscal year.

(c) POLICY REVIEW.—The Nuclear Regu-latory Commission shall review its policy forassessment of annual charges under section6101(c) of the Omnibus Budget ReconciliationAct of 1990, solicit public comment on theneed for changes to such policy, and rec-ommend to the Congress such changes in ex-isting law as the Commission finds are need-ed to prevent the placement of an unfair bur-den on certain licensees of the Commission,in particular those that hold licenses to op-

erate federally owned research reactors usedprimarily for educational training and aca-demic research purposes.SEC. 2904. STUDY AND IMPLEMENTATION PLAN

ON SAFETY OF SHIPMENTS OF PLU-TONIUM BY SEA.

(a) STUDY.—The President, in consultationwith the Nuclear Regulatory Commission,shall conduct a study on the safety of ship-ments of plutonium by sea. The study shallconsider the following:

(1) The safety of the casks containing theplutonium.

(2) The safety risks to the States of suchshipments.

(3) Upon the request of any State, the ade-quacy of that State’s emergency plans withrespect to such shipments.

(4) The Federal resources needed to assistthe States on account of such shipments.

(b) REPORT.—The President shall, not laterthan 60 days after the date of the enactmentof this Act, transmit to the Congress a re-port on the study conducted under sub-section (a), together with his recommenda-tions based on the study.

(c) IMPLEMENTATION PLAN.—The President,in consultation with the Nuclear RegulatoryCommission, shall establish a plan to imple-ment the recommendations contained in thestudy conducted under subsection (a) andshall, not later than 90 days after transmit-ting the report to the Congress under sub-section (b), transmit to the Congress thatimplementation plan.

(d) DEFINITION.—As used in this section,the term ‘‘State’’ includes the District of Co-lumbia and any commonwealth, territory, orpossession of the United States.

TITLE XXX—MISCELLANEOUSSubtitle A—General Provisions

SEC. 3001. RESEARCH, DEVELOPMENT, DEM-ONSTRATION, AND COMMERCIAL AP-PLICATION ACTIVITIES.

(a) RESEARCH, DEVELOPMENT, AND DEM-ONSTRATION.—(1) Except as otherwise pro-vided in this Act, research, development, anddemonstration activities under this Act maybe carried out under the procedures of theFederal Nonnuclear Research and Develop-ment Act of 1974 (42 U.S.C. 5901–5920), theAtomic Energy Act of 1954 (42 U.S.C. 2011 etseq.), or any other Act under which the Sec-retary is authorized to carry out such activi-ties, but only to the extent the Secretary isauthorized to carry out such activities undereach such Act. An objective of any dem-onstration program under this Act shall beto determine the technical and commercialfeasibility of energy technologies.

(2) Except as otherwise provided in thisAct, in carrying out research, development,and demonstration programs and activitiesunder this Act, the Secretary may use, tothe extent authorized under applicable provi-sions of law, contracts, cooperative agree-ments, cooperative research and develop-ment agreements under the Stevenson-Wydler Technology Innovation Act of 1980,grants, joint ventures, and any other form ofagreement available to the Secretary.

(b) COMMERCIAL APPLICATION.—Except asotherwise provided in this Act, in carryingout commercial application programs andcommercial application activities under thisAct, the Secretary may use, to the extentauthorized under applicable provisions oflaw, contracts, cooperative agreements, co-operative research and development agree-ments under the Stevenson-Wydler Tech-nology Innovation Act of 1980, grants, jointventures, and any other form of agreementavailable to the Secretary. An objective ofany commercial application program underthis Act shall be to accelerate the transitionof technologies from the research and devel-opment stage.

(c) DEFINITION.—For purposes of this sec-tion, the term ‘‘joint venture’’ has the mean-

ing given the term ‘‘joint research and devel-opment venture’’ under section 2 (a)(6) and(b) of the National Cooperative Research Actof 1984 (15 U.S.C. 4301 (a)(6) and (b)), exceptthat such term may apply under this sectionto research, development, demonstration,and commercial application joint ventures.

(d) PROTECTION OF INFORMATION.—Section12(c)(7) of the Stevenson-Wydler TechnologyInnovation Act of 1980, relating to the pro-tection of information, shall apply to re-search, development, demonstration, andcommercial application programs and activi-ties under this Act.

(e) GUIDELINES AND PROCEDURES.—The Sec-retary shall provide guidelines and proce-dures for the transition, where appropriate,of energy technologies from researchthrough development and demonstrationunder subsection (a) to commercial applica-tion under subsection (b). Nothing in thissection shall preclude the Secretary from—

(1) entering into a contract, cooperativeagreement, cooperative research and devel-opment agreement under the Stevenson-Wydler Technology Innovation Act of 1980,grant, joint venture, or any other form ofagreement available to the Secretary underthis section that relates to research, devel-opment, demonstration, and commercial ap-plication; or

(2) extending a contract, cooperativeagreement, cooperative research and devel-opment agreement under the Stevenson-Wydler Technology Innovation Act of 1980,grant, joint venture, or any other form ofagreement available to the Secretary thatrelates to research, development, and dem-onstration to cover commercial application.

(f) APPLICATION OF SECTION.—This sectionshall not apply to any contract, cooperativeagreement, cooperative research and devel-opment agreement under the Stevenson-Wydler Technology Innovation Act of 1980,grant, joint venture, or any other form ofagreement available to the Secretary that isin effect as of the date of the enactment ofthis Act.

SEC. 3002. COST SHARING.

(a) RESEARCH AND DEVELOPMENT.—Exceptas otherwise provided in this Act, for re-search and development programs carriedout under this Act, the Secretary shall re-quire a commitment from non-Federalsources of at least 20 percent of the cost ofthe project. The Secretary may reduce oreliminate the non-Federal requirementunder this subsection if the Secretary deter-mines that the research and development isof a basic or fundamental nature.

(b) DEMONSTRATION AND COMMERCIAL AP-PLICATION.—Except as otherwise provided inthis Act, the Secretary shall require at least50 percent of the costs directly and specifi-cally related to any demonstration or com-mercial application project under this Act tobe provided from non-Federal sources. TheSecretary may reduce the non-Federal re-quirement under this subsection if the Sec-retary determines that the reduction is nec-essary and appropriate considering the tech-nological risks involved in the project and isnecessary to meet the objectives of this Act.

(c) CALCULATION OF AMOUNT.—In calculat-ing the amount of the non-Federal commit-ment under paragraph (1) or (2), the Sec-retary shall include cash, personnel, serv-ices, equipment, and other resources.

(d) TENNESSEE VALLEY AUTHORITY.—Fundsderived by the Tennessee Valley Authorityfrom its power program may be used for allor part of any cost sharing requirementsunder this section, except to the extent thatsuch funds are provided by annual appropria-tion Acts.


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1992 T121.25Subtitle B—Other Miscellaneous Provisions

SEC. 3011. POWERPLANT AND INDUSTRIAL FUELUSE ACT OF 1978 REPEAL.

Section 403(c) of the Powerplant and Indus-trial Fuel Use Act of 1978 (42 U.S.C. 8373(c)) isrepealed.SEC. 3012. ALASKA NATURAL GAS TRANSPOR-

TATION ACT OF 1976 REPEAL.(a) REPEAL.—Section 7(a)(5) of the Alaska

Natural Gas Transportation Act of 1976 (15U.S.C. 719e(a)(5)) is repealed.

(b) ABOLITION OF OFFICE OF FEDERAL IN-SPECTOR OF CONSTRUCTION.—The Office ofFederal Inspector of Construction for theAlaska Natural Gas Transportation System,created pursuant to the paragraph repealedby subsection (a) of this section, is abolished.All functions and authority vested in the In-spector are hereby transferred to the Sec-retary of Energy.

(c) REVOCATION OF CERTAIN OFI REGULA-TIONS.—Regulations applicable to the Officeof Federal Inspector of the Alaska NaturalGas Transportation System, as set forth inchapter 15 of title 10, Code of Federal Regula-tions, are hereby revoked.SEC. 3013. GEOTHERMAL HEAT PUMPS.

The Secretary shall—(1) encourage States, municipalities, coun-

ties, and townships to consider allowing theinstallation of geothermal heat pumps, and,where applicable, and consistent with publichealth and safety, to permit public and pri-vate water recipients to utilize the flow ofwater from, and back into, public and pri-vate water mains for the purpose of provid-ing sufficient water supply for the operationof residential and commercial geothermalheat pumps; and

(2) not discourage any local authoritywhich allows the use of geothermal heatpumps from—

(A) inspecting, at any reasonable time,geothermal heat pump connections to thewater system to ensure the exclusive use ofthe public or private water supply to thegeothermal heat pump system; and

(B) requiring that geothermal heat pumpsystems be designed and installed in a man-ner that eliminates any risk of contamina-tion to the public water supply.SEC. 3014. USE OF ENERGY FUTURES FOR FUEL

PURCHASES.(a) FUEL STUDY.—The Secretary shall con-

duct a study—(1) to ascertain if the use of energy futures

and options contracts could provide cost-ef-fective protection for Government entities(including Government purchases for mili-tary purposes and for the Strategic Petro-leum Reserve) and consumer cooperatives (orany organization whose purpose is to pur-chase fuel in bulk) from unanticipatedsurges in the price of fuel; and

(2) to ascertain how such Government enti-ties or consumer cooperatives may be edu-cated in the prudent use of energy futuresand options contracts to maximize their pur-chasing effectiveness, protect themselvesagainst unanticipated surges in the price offuel, and minimize fuel costs.

(b) REPORT.—The Secretary, no later than12 months after the date of the enactment ofthis Act, shall transmit the study requiredin this section to the Committee on Energyand Commerce of the House of Representa-tives and the Committee on Energy and Nat-ural Resources of the Senate.

(c) PILOT PROGRAM.—The Secretary shallconduct a pilot program, commencing notlater than 30 days after the transmission ofthe study required in subsection (b), to edu-cate such governmental entities, consumercooperatives, or other organizations on theprudent and cost-effective use of energy fu-tures and options contracts to increase theirprotection against unanticipated surges inthe price of fuel and thereby increase the ef-

ficiency of their fuel purchase or assistanceprograms.

(d) AUTHORIZATION.—There are authorizedto be appropriated such sums as may be nec-essary to carry out this section.SEC. 3015. ENERGY SUBSIDY STUDY.

(a) IN GENERAL.—The Secretary shall con-tract with the National Academy of Sciencesto conduct a study of energy subsidies that—

(1) are in effect on the date of the enact-ment of this Act; or

(2) have been in effect prior to the date ofthe enactment of this Act.

(b) REPORT TO CONGRESS.—Not later than18 months after the date of the enactment ofthis Act, the Secretary shall transmit to theCongress, the results of such study to be ac-companied by recommendations for legisla-tion, if any.

(c) CONTENTS.—(1) IN GENERAL.—The study shall identify

and quantify the direct and indirect sub-sidies and other legal and institutional fac-tors that influence decisions in the market-place concerning fuels and energy tech-nologies.

(2) TOPICS FOR EXAMINATION.—The studyshall examine—

(A) fuel and technology choices that are—(i) available on the date of the enactment

of this Act; or(ii) reasonably foreseeable on the date of

the enactment of this Act;(B) production subsidies for the extraction

of raw materials;(C) subsidies encouraging investment in

large capital projects;(D) indemnification;(E) fuel cycle subsidies, including waste

disposal;(F) government research and development

support; and(G) other relevant incentives and disincen-

tives.(d) AUTHORIZATION OF APPROPRIATIONS.—

There are authorized to be appropriated tocarry out this section $500,000 for each of thefiscal years 1993 and 1994.SEC. 3016. TAR SANDS.

(a) POLICY.—It is the policy of the UnitedStates to promote the development and pro-duction, by all means consistent with soundengineering, economic, and environmentalpractices, of deposits of tar sands.

(b) DEFINITION.—(1) For purposes of thissection, the term ‘‘tar sands’’ means anyconsolidated or unconsolidated rock (otherthan coal, oil shale, or gilsonite) that ei-ther—

(A) contains a hydrocarbonaceous materialwith a gas-free viscosity, at original res-ervoir temperature, greater than 10,000centipoise; or

(B) contains a hydrocarbonaceous materialand is produced by mining or quarrying.

(2) Nothing in this section is intended orshall be construed to affect in any way thedefinition of the term tar sands under anyother provision of Federal law.

(c) STUDY.—The Secretary, in consultationwith the Secretary of the Interior, shall sub-mit a study to the House of Representativesand the Committee on Energy and NaturalResources of the Senate within one yearafter the date of enactment of this Act. Suchstudy shall identify and evaluate the devel-opment potential of sources of tar sands inthe United States. The study shall also iden-tify and evaluate processes for extracting oilfrom the identified tar sand sources, includ-ing existing tar sands waste tailings, andevaluate the environmental benefits of, andthe potential for co-production of mineralsand metals from, such processes.

(d) AUTHORIZATION.—There are authorizedto be appropriated such sums as may be nec-essary for each of the fiscal years 1993 and1994 to carry out this section.

SEC. 3017. AMENDMENTS TO TITLE 11 OF THEUNITED STATES CODE.

(a) DEFINITION.—Section 101 of title 11,United States Code, is amended by insertingafter paragraph (21) the following:

‘‘(21A) ‘farmout agreement’ means a writ-ten agreement in which—

‘‘(A) the owner of a right to drill, produce,or operate liquid or gaseous hydrocarbons onproperty agrees or has agreed to transfer orassign all or a part of such right to anotherentity; and

‘‘(B) such other entity (either directly orthrough its agents or its assigns), as consid-eration, agrees to perform drilling, rework-ing, recompleting, testing, or similar or re-lated operations, to develop or produce liq-uid or gaseous hydrocarbons on the prop-erty;’’.

(b) PROPERTY OF THE ESTATE.—Section541(b) of title 11, United States Code, isamended—

(1) in paragraph (2) by striking ‘‘or’’ at theend,

(2) in paragraph (3) by striking the periodat the end and inserting ‘‘or’’, and

(3) by adding at the end the following:‘‘(4) any interest of the debtor in liquid or

gaseous hydrocarbons to the extent that—‘‘(A) the debtor has transferred or has

agreed to transfer such interest pursuant toa farmout agreement or any written agree-ment directly related to a farmout agree-ment; and

‘‘(B) but for the operation of this para-graph, the estate could include such interestonly by virtue of section 365 or 544(a)(3) ofthis title.

Paragraph (4) shall not be construed to ex-clude from the estate any consideration thedebtor retains, receives, or is entitled to re-ceive for transferring an interest in liquid orgaseous hydrocarbons pursuant to a farmoutagreement.’’.

(c) EFFECTIVE DATE; APPLICATION OFAMENDMENTS.—(1) Except as provided inparagraph (2), the amendments made by thissection shall take effect on the date of theenactment of this Act.

(2) The amendments made by this sectionshall not apply with respect to cases com-menced under title 11 of the United StatesCode before the date of the enactment of thisAct.SEC. 3018. RADIATION EXPOSURE COMPENSA-

TION.Section 6 of the Radiation Exposure Com-

pensation Act (42 U.S.C. 2210 note) is amend-ed by adding at the end the following newsubsection:

‘‘(l) JUDICIAL REVIEW.—An individualwhose claim for compensation under this Actis denied may seek judicial review solely ina district court of the United States. Thecourt shall review the denial on the adminis-trative record and shall hold unlawful andset aside the denial if it is arbitrary, capri-cious, an abuse of discretion, or otherwisenot in accordance with law.’’.SEC. 3019. STRATEGIC DIVERSIFICATION.

The Office of Barter within the UnitedStates Department of Commerce and theInteragency Group on Countertrade shallwithin six months from the date of enact-ment report to the President and the Con-gress on the feasibility of using barter,countertrade and other self-liquidating fi-nance methods to facilitate the strategic di-versification of United States oil importsthrough cooperation with the former SovietUnion in the development of its energy re-sources. The report shall consider amongother relevant topics the feasibility of trad-ing American grown food for Soviet producedoil, minerals or energy.SEC. 3020. CONSULTATIVE COMMISSION ON

WESTERN HEMISPHERE ENERGYAND ENVIRONMENT.

(a) FINDINGS.—The Congress finds that—

JOURNAL OF THE

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OCTOBER 5T121.25(1) there is growing mutual economic

interdependence among the countries of theWestern Hemisphere;

(2) energy and environmental issues are in-trinsically linked and must be considered to-gether when formulating policy on thebroader issue of sustainable economic devel-opment for the Western Hemisphere as awhole;

(3) when developing their respective energyinfrastructures, countries in the WesternHemisphere must consider existing andemerging environmental constraints, and doso in a way that results in sustainable long-term economic growth;

(4) the coordination of respective nationalenergy and environmental policies of thegovernments of the Western Hemispherecould be substantially improved through reg-ular consultation among these countries;

(5) the development, production and con-sumption of energy can affect environmentalquality, and the environmental consequencesof energy-related activities are not confinedwithin national boundaries, but are regionaland global in scope;

(6) although the Western Hemisphere isrichly endowed with indigenous energy re-sources, an insufficient energy supply wouldseverely constrain future opportunities forsustainable economic development andgrowth in each of these member countries;and

(7) the energy markets of the UnitedStates are linked with those in other coun-tries of the Western Hemisphere and theworld.

(b) DEFINITION.—For purposes of this sec-tion, the term ‘‘Commission’’ means theConsultative Commission on Western Hemi-sphere Energy and Environment.

(c) NEGOTIATIONS.—The President is au-thorized to direct the United States rep-resentative to the Organization of AmericanStates to initiate negotiations with the Or-ganization of American States for the estab-lishment of a Consultative Commission onWestern Hemisphere Energy and Environ-ment under the auspices of the Organizationof American States.

(d) THE COMMISSION.—In the course of thenegotiations, the following shall be pursued:

(1) OBJECTIVES.—The objectives of theCommission shall be—

(A) to evaluate from the viewpoint of theWestern Hemisphere as a whole the energyand environmental situations, trends, andpolicies of the countries of the participatinggovernments necessary to support sustain-able economic development;

(B) to recommend to the participating gov-ernments actions, policies, and institutionalarrangements that will enhance cooperationand policy coordination among their respec-tive countries in the future development anduse of indigenous energy resources and tech-nologies, and in the future development andimplementation of measures to protect theenvironment of the Western Hemisphere; and

(C) to recommend to the participating gov-ernments actions and policies that will en-hance energy and environmental cooperationand coordination among the countries of theWestern Hemisphere and the world.

(2) COMPOSITION OF THE COMMISSION.—TheCommission shall include representativesof—

(A) the respective foreign energy and envi-ronmental ministries or departments of theparticipating governments;

(B) the parliamentary or legislative bodieswith legislative responsibilities for energyand environmental matters; and

(C) other governmental and non-govern-mental observers appointed by the heads ofeach participating government on the basisof their experience and expertise.

(3) SECRETARIAT.—A small secretariat shallbe chosen by the participating governments

for their expertise in the areas of energy andthe environment.

(4) SUNSET PROVISION.—The Commission’sauthority—

(A) shall terminate five years from thedate of the agreement under which it wascreated; and

(B) may be extended for a five-year term atthe expiration of the previous term by agree-ment of the participating governments.

(e) REPORT.—The President shall, withinone year after the date of enactment of thisAct, report to the Committee on Energy andCommerce and the Committee on ForeignAffairs of the House of Representatives, andto the Committee on Energy and Natural Re-sources and the Committee on Foreign Rela-tions of the Senate, on the progress towardthe establishment of the Commission andachievement of the purposes of this section.SEC. 3021. DISADVANTAGED BUSINESS ENTER-

PRISES.(a) GENERAL RULE.—To the extent prac-

ticable, the head of each agency shall pro-vide that the obligation of not less than 10percent of the total combined amounts obli-gated for contracts and subcontracts by eachagency under this Act and amendmentsmade by this Act pursuant to competitiveprocedures within the meaning of either theFederal Property and Administrative Serv-ices Act of 1949 (41 U.S.C. 251 et seq.), orchapter 137 of title 10, United States Code,shall be expended either with—

(1) small business concerns controlled bysocially and economically disadvantaged in-dividuals or women;

(2) historically Black colleges and univer-sities; or

(3) colleges and universities having a stu-dent body in which more than 20 percent ofthe students are Hispanic Americans or Na-tive Americans.

(b) DEFINITIONS.—For purposes of this sec-tion, the following definitions shall apply:

(1) The term ‘‘small business concern’’ hasthe meaning such term has under section 3 ofthe Small Business Act (15 U.S.C. 632). How-ever, for purposes of contracts and sub-contracts requiring engineering services theapplicable size standard shall be that estab-lished for military and aerospace equipmentand military weapons.

(2) The term ‘‘socially and economicallydisadvantaged individuals’’ has the meaningsuch term has under section 8(d) of the SmallBusiness Act (15 U.S.C. 637(d)) and relevantsubcontracting regulations promulgated pur-suant thereto.

And the Senate agree to the same.From the Committee on Energy and Com-merce, for consideration of the House bill(except title XIX), and the Senate amend-ment (except title XX), and modificationscommitted to conference:

JOHN D. DINGELL,PHILIP R. SHARP,EDWARD J. MARKEY,BILLY TAUZIN,EDOLPHUS TOWNS,AL SWIFT,MIKE SYNAR,NORMAN F. LENT,CARLOS J. MOORHEAD,

Provided, that Mr. Bliley is appointed onlyfor consideration of titles I, VII, XII, XVII,and XXXI of the House bill, and titles V, VI,and XV of the Senate amendment:

TOM BLILEY,Mr. Fields is appointed only for consider-ation of titles III, IV, V, XIV, XVIII, and XXof the House bill, and titles IV and XVI ofthe Senate amendment:

JACK FIELDS,Mr. Oxley is appointed only for considerationof titles II, VI, VIII, IX, X, XI, XIII, XV, XVI,XXI, XXII, XXIII, XXIV, XXV, XXVI, XXVII,XXVIII, XXIX, and XXX of the House bill,

and titles I, II, VIII, IX, X, XI, XII, XIII, XIV,XVII, XVIII, XIX, and XXI of the Senateamendment; and in lieu of Mr. Lent for titleVII of the House bill and title XV of the Sen-ate amendment:

MICHAEL G. OXLEY,From the Committee on Ways and Means, forconsideration of title XIX of the House bill,and section 19108 and title XX of the Senateamendment, and modifications committed toconference:

DAN ROSTENKOWSKI,SAM GIBBONS,J.J. PICKLE,CHARLES B. RANGEL,PETE STARK,

As additional conferees from the Committeeon Ways and Means, for that portion of sec-tion 1101 of the House bill which adds newsections 1701 and 1702 to the Atomic EnergyAct of 1974, and that portion of section 10103of the Senate amendment which adds newsections 1701 and 1702 to the Atomic EnergyAct of 1954, and modifications committed toconference:

DAN ROSTENKOWSKI,SAM GIBBONS,J.J. PICKLE,CHARLES B. RANGEL,PETE STARK,

As additional conferees from the Committeeon Education and Labor, for consideration ofsection 20141, 20142, 20143 (except those por-tions which add new sections 9702(a)(4), 9704,9705(a)(4), 9706, and 9712(d)(5) to the InternalRevenue Code of 1986) of the Senate amend-ment, and modifications committed to con-ference:

WILLIAM D. FORD,WILLIAM CLAY,GEORGE MILLER,DALE E. KILDEE,

As additional conferees from the Committeeon Education and Labor, for consideration ofthose portions of section 901 which add newsections 1305 and 1312 to the Atomic EnergyAct of 1954, that portion of section 1101 whichadds a new section 1704 to the Atomic EnergyAct of 1954, and section 3004 of the House billand sections 4402, 6601–04, 10104, 13119, and19113 of the Senate amendment, and modi-fications committed to conference:

WILLIAM D. FORD,PAT WILLIAMS,

As additional conferees from the Committeeon Foreign Affairs, for consideration of sec-tions 1205, 1208, 1213–14, 1302–05, 1606, and 903of the House bill, and sections 5101–04, thatportion of section 5201 which adds a new sec-tion 6 to the Renewable Energy and EnergyEfficiency Technology Competitiveness Actof 1989, 14108–09, and 14301–02, of the Senateamendment, and modifications committed toconference:

DANTE B. FASCELL,SAM GEJDENSON,HOWARD WOLPE,MEL LEVINE,EDWARD FEIGHAN,HARRY JOHNSTON,ELIOT L. ENGEL,WILLIAM BROOMFIELD,TOBY ROTH,JOHN MILLER,AMO HOUGHTON,

As additional conferees from the Committeeon Foreign Affairs, for consideration of sec-tions 1211, 1607, 2481, and 2704 of the Housebill, and sections 1201, 6701–02, 10223(b), 13102,17101–02, 19101, and 19109 of the Senateamendment, and modifications committed toconference:

DANTE B. FASCELL,SAM GEJDENSON,WILLIAM BROOMFIELD,

As additional conferees from the Committeeon Government Operations, for considerationof sections 121 (e) and (f), 122, 127, and 128 ofthe House bill, and sections 6207, 6216, 6218,


2691

1992 T121.25and 6220–6221 of the Senate amendment, andmodifications committed to conference:

JOHN CONYERS, JR.,ALBERT G. BUSTAMANTE,BILL CLINGER,

As additional conferees from the Committeeon Government Operations, for considerationof sections 302 and 304–306 of the House bill,and sections 4102, 4105–4106, 4112–4113, 4116,and 4119 of the Senate amendment, andmodifications committed to conference:

JOHN CONYERS, JR.,BOB WISE,AL MCCANDLESS,

As additional conferees from the Committeeon Interior and Insular Affairs, for consider-ation of sections 133, 1314, 1607, 3002, 3004,3009, 3101, 3102, and 3104 and titles VIII–XIand XXIV–XXIX of the House bill, and sec-tions 5302–5304, 5308, 6303, 6501, 6506, 13115,13118, 13120–13121, 14114, 19110, 19112 and titlesIX, X, XII, XVIII of the Senate amendment,and modifications committed to conference:

GEORGE MILLER,NICK RAHALL,BRUCE F. VENTO,RON DE LUGO,SAM GEJDENSON,BARBARA F. VUCANOVICH

(I concur in the Con-ference Report andthe Statement ofManagers exceptfor section 801),

JOHN J. RHODES,Provided, Mr. Murphy is appointed in lieu ofMr. DeFazio for consideration of title XXVof the House bill and section 14114 of the Sen-ate amendment only and Mr. Abercrombie isappointed in lieu of Mr. DeFazio for consid-eration of section 2481 of the House bill only:

AUSTIN J. MURPHY,NEIL ABERCROMBIE,

As additional conferees from the Committeeon Interior and Insular Affairs, for consider-ation of that portion of section 723(h) whichadds a new section 212(h) to the FederalPower Act, 1312–1313, 1403, 2012, 2113(g), 2307,and 3008 of the House bill, and sections 19104,and 20143(b) and titles VIII and XXI of theSenate amendment, and modifications com-mitted to conference:

GEORGE MILLER,NICK RAHALL,

As additional conferees from the Committeeon the Judiciary, for consideration of section3010 of the House bill, and section 19102 of theSenate amendment, and modifications com-mitted to conference:

JACK BROOKS,DON EDWARDS,DAN GLICKMAN,EDWARD FEIGHAN,HARLEY O. STAGGERS, JR.,HOWARD L. BERMAN,CRAIG WASHINGTON,HAMILTON FISH, JR.,HENRY J. HYDE,TOM CAMPBELL,LAMAR SMITH,

As additional conferees from the Committeeon the Judiciary, for consideration of section11107 of the Senate amendment, and modi-fications committed to conference:

JACK BROOKS,DON EDWARDS,

As additional conferees from the Committeeon the Judiciary, for consideration of section19106 of the Senate (amendment), and modi-fications committed to conference:

JACK BROOKS,BARNEY FRANK,GEORGE W. GEKAS,

As additional conferees from the Committeeon Merchant Marine and Fisheries, for con-sideration of section 1607, and title XXIV ofthe House bill, and title XII of the Senateamendment, and modifications committed toconference:

GERRY STUDDS,DENNIS M. HERTEL,BOB DAVIS,JACK FIELDS,JAMES M. INHOFE,

As additional conferees from the Committeeon Merchant Marine and Fisheries, for con-sideration of sections 205, 1602, 1701(b) of theHouse bill, and sections 5204, 5302, 5304, and11103 and title XXI of the Senate amend-ment, and modifications committed to con-ference:

GERRY STUDDS,BOB DAVIS,

As additional conferees from the Committeeon Public Works and Transportation, forconsideration of sections 121–128, 132, 411,2453, 2461–2464, 2705, 3102, and 3104 and titleXVIII of the House bill, and sections 4120,4401, 5303, 5308, 6101, 6201–6224, 6304, and 10224of the Senate amendment, and modificationscommitted to conference:

ROBERT A. ROE,NORMAN Y. MINETA,HENRY J. NOWAK,DOUGLAS APPLEGATE,RON DE LUGO,GUS SAVAGE,ROBERT A. BORSKI,JOHN PAUL

HAMMERSCHMIDT,BUD SHUSTER,THOMAS E. PETRI,JAMES M. INHOFE,

As additional conferees from the Committeeon Public Works and Transportation, forconsideration of sections 164(h), that portionof section 723 which adds a new section 212(i)to the Federal Power Act, 410, and 1316 of theHouse bill, and sections 12103, 12204, and 14113of the Senate amendment, and modificationscommitted to conference:

ROBERT A. ROE,NORMAN Y. MINETA,JOHN PAUL

HAMMERSCHMIDT,As additional conferees from the Committeeon Science, Space, and Technology, for con-sideration of sections 901–02, 1203, 1207, 1301,1306–09, 1318–19, 1315, 2471, 2502–03, 2513, 3005,3007, 3009 and titles VI and XX–XXIII of theHouse bill, and sections 4201–18, 4305, 4401,5201–02, 5204–06, 6104, 6501, 6506, 19103, and ti-tles II, VIII, subtitle A of title X, exceptthose portions adding new sections 1511, 1601,1606, 1607, 1701–1703 to the Atomic Energy Actof 1954, XIII, and XIV of the Senate amend-ment, and modifications committed to con-ference:

GEORGE E. BROWN, JR.,MARILYN LLOYD,JAMES H. SCHEUER,HOWARD WOLPE,RICHARD H. STALLINGS,TIMOTHY ROEMER,DICK SWETT,ROBERT S. WALKER,DON RITTER,SID MORRISON,HARRIS W. FAWELL,

As additional conferees from the Committeeon Banking, Finance and Urban Affairs, forconsideration of sections 5207, 6101–6103 ofthe Senate amendment, and modificationscommitted to conference:

HENRY GONZALEZ,MARY ROSE OAKAR,MARGE ROUKEMA,

As additional conferees from the Committeeon Veterans’ Affairs, for consideration ofsection 1934 of the House bill, and modifica-tions committed to conference:

G.V. MONTGOMERY,DON EDWARDS,DOUGLAS APPLEGATE,HARLEY O. STAGGERS, JR.,BOB STUMP,JOHN PAUL

HAMMERSCHMIDT,

As additional conferees from the Committeeon Veterans’ Affairs, for consideration ofsections 6101 and 6102 of the Senate amend-ment, and modifications committed to con-ference:

G.V. MONTGOMERY,HARLEY O. STAGGERS, JR.,BOB STUMP,

Managers on the Part of the House.

From the Committee on Energy and NaturalResources, for all titles except title XIX ofH.R. 776 and title XX of the Senate amend-ment (revenue provisions):

J. BENNETT JOHNSTON,DALE BUMPERS,WENDELL H. FORD,JEFF BINGAMAN,TIM WIRTH,KENT CONRAD,RICHARD SHELBY,MALCOLM WALLOP,MARK O. HATFIELD,PETE V. DOMENICI,DON NICKLES,CONRAD BURNS,

From the Committee on Governmental Af-fairs, conferees for subtitle B of title VI ofthe Senate amendment (Federal energy man-agement):

JOHN GLENN,TED STEVENS,

From the Committee on Commerce, Science,and Transportation, conferees for subtitlesA, B, and C of title XII of the Senate amend-ment (Outer Continental Shelf revenue shar-ing), pipeline safety issues (as contained inSenate amendment No. 2785):

ERNEST F. HOLLINGS,From the Committee on Banking, Housing,and Urban Affairs, conferees for title XV ofthe Senate amendment (Public Utility Hold-ing Company Act reform):

DON RIEGLE,JAKE GARN,

From the Committee on Veterans’ Affairs,conferees on sections 6101 and 6102 of title VIof the Senate amendment (building energyefficiency):

ALAN CRANSTON,ARLEN SPECTER,

From the Committee on Finance, confereeson title XIX of H.R. 776 and title XX of theSenate amendment (revenue provisions):

LLOYD BENTSEN,DANIEL PATRICK MOYNIHAN,MAX BAUCUS,DAVID L. BOREN,TOM DASCHLE,JOHN BREAUX,BOB PACKWOOD,BOB DOLE,JOHN C. DANFORTH,JOHN H. CHAFEE,

Managers on the Part of the Senate.

When said conference report was con-sidered.

After debate,On motion of Mr. SHARP, the pre-

vious question was ordered on the con-ference report to its adoption or rejec-tion.

Mrs. VUCANOVICH moved to recom-mit the conference report on said billto the committee of conference withinstructions to the managers on thepart of the House to disagree to section801 (relating to EPA standards for nu-clear waste disposal) in the conferencesubstitute recommended by the com-mittee of conference.

By unanimous consent, the previousquestion was ordered on the motion torecommit with instructions.

The question being put, viva voce,Will the House recommit said con-

ference report with instructions?

JOURNAL OF THE

2692

OCTOBER 5T121.26The SPEAKER pro tempore, Mr.

MONTGOMERY, announced that thenays had it.

Mrs. VUCANOVICH objected to thevote on the ground that a quorum wasnot present and not voting.

A quorum not being present,The roll was called under clause 4,

rule XV, and the call was taken byelectronic device.

Yeas ....... 102When there appeared ! Nays ...... 323

T121.26 [Roll No. 473]

YEAS—102

AllardAllenAndrews (ME)AtkinsAuCoinBallengerBarrettBentleyBermanBilbrayBilirakisBoehlertBryantBurtonByronCampbell (CA)Campbell (CO)Coleman (TX)ConyersCox (CA)Cranede la GarzaDeFazioDeLayDickinsonDoolittleDornan (CA)DreierEvansEwingFawellFishGekasGeren

GilchrestGillmorGilmanGossHammerschmidtHansenIrelandJamesJohnstonJontzKapturKlugKostmayerLantosLaRoccoLevine (CA)Lewis (CA)MarleneeMcDermottMcEwenMcNultyMfumeMichelMiller (OH)MoodyMurphyMyersNagleObeyOlverOrtonOwens (UT)PallonePaxon

RamstadRangelRichardsonRiggsRos-LehtinenSandersSavageSchaeferScheuerSchiffSchroederSchulzeShawSikorskiSkaggsSkeenSmith (OR)Smith (TX)SnoweStaggersStallingsStuddsThomas (CA)Thomas (WY)VentoVucanovichWalshWashingtonWatersWaxmanWeberWolpeYatesYoung (AK)

NAYS—323

AbercrombieAckermanAlexanderAndersonAndrews (NJ)Andrews (TX)AnnunzioAnthonyApplegateArcherArmeyAspinBacchusBakerBartonBatemanBeilensonBennettBereuterBevillBlackwellBlileyBoehnerBoniorBorskiBoucherBrewsterBrooksBroomfieldBrowderBrownBruceBunningBustamanteCallahanCampCardinCarperCarrChapmanClayClingerCobleColeman (MO)Collins (IL)

Collins (MI)CombestConditCooperCostelloCoughlinCox (IL)CoyneCramerCunninghamDannemeyerDardenDavisDeLauroDellumsDerrickDicksDingellDixonDonnellyDooleyDorgan (ND)DowneyDuncanDurbinDwyerDymallyEarlyEckartEdwards (CA)Edwards (OK)Edwards (TX)EmersonEngelEnglishErdreichEspyFascellFazioFeighanFieldsFlakeFogliettaFord (MI)Ford (TN)

Frank (MA)Franks (CT)FrostGalleglyGalloGaydosGejdensonGephardtGibbonsGingrichGlickmanGonzalezGoodlingGordonGradisonGrandyGreenGuariniGundersonHall (OH)Hall (TX)HamiltonHancockHarrisHastertHatcherHayes (IL)Hayes (LA)HefleyHefnerHenryHergerHertelHoaglandHobsonHochbruecknerHollowayHopkinsHornHortonHoughtonHoyerHubbardHuckabyHughes

HuttoHydeInhofeJacobsJeffersonJenkinsJohnson (CT)Johnson (SD)Johnson (TX)JonesKanjorskiKasichKennedyKennellyKildeeKleczkaKolbeKolterKopetskiKylLaFalceLagomarsinoLancasterLaughlinLeachLehman (CA)Lehman (FL)LentLevin (MI)Lewis (FL)Lewis (GA)LightfootLivingstonLloydLongLowery (CA)Lowey (NY)LukenMachtleyMantonMarkeyMartinMartinezMatsuiMavroulesMazzoliMcCandlessMcCloskeyMcCollumMcCreryMcCurdyMcDadeMcGrathMcHughMcMillan (NC)McMillen (MD)MeyersMiller (CA)Miller (WA)MinetaMinkMoakleyMolinari

MollohanMontgomeryMoorheadMoranMorellaMorrisonMrazekMurthaNatcherNeal (MA)Neal (NC)NicholsNowakNussleOakarOberstarOlinOrtizOwens (NY)OxleyPackardPanettaParkerPastorPattersonPayne (NJ)Payne (VA)PeasePelosiPennyPerkinsPeterson (FL)Peterson (MN)PetriPickettPicklePorterPoshardPricePursellQuillenRahallRavenelRayReedRegulaRhodesRidgeRinaldoRitterRobertsRoeRoemerRogersRohrabacherRoseRostenkowskiRothRoukemaRowlandRoybalRussoSabo

SangmeisterSantorumSarpaliusSawyerSaxtonSchumerSensenbrennerSerranoSharpShaysShusterSisiskySkeltonSlatterySlaughterSmith (FL)Smith (IA)Smith (NJ)SolarzSolomonSpenceSprattStarkStenholmStokesStumpSundquistSwettSwiftSynarTallonTannerTauzinTaylor (MS)Taylor (NC)Thomas (GA)ThorntonTorresTorricelliTownsTraficantTraxlerUnsoeldUptonValentineVander JagtViscloskyVolkmerWalkerWeldonWheatWhittenWilliamsWilsonWiseWolfWydenWylieYatronYoung (FL)ZeliffZimmer

NOT VOTING—7

BarnardBoxerChandler

ClementHunterLipinski

Stearns

So the motion to recommit said con-ference report with instructions wasnot agreed to.

The question being put, viva voce,Will the House agree to said con-

ference report?The SPEAKER pro tempore, Mr.

MONTGOMERY, announced that theyeas had it.

Mr. SHARP demanded that the votebe taken by the yeas and nays, whichdemand was supported by one-fifth ofthe Members present, so the yeas andnays were ordered.

The vote was taken by electronic de-vice.

It was decided in the Yeas ....... 363!affirmative ................... Nays ...... 60

T121.27 [Roll No. 474]

YEAS—363

AbercrombieAckermanAlexanderAndersonAndrews (NJ)

Andrews (TX)AnnunzioAnthonyApplegateArcher

AspinAtkinsAuCoinBakerBallenger

BarrettBartonBatemanBeilensonBennettBentleyBereuterBermanBevillBlackwellBlileyBoehlertBoehnerBoniorBorskiBoucherBrewsterBrooksBroomfieldBrowderBrownBruceBryantBunningBustamanteByronCallahanCampbell (CO)CardinCarperCarrChapmanClayClingerCobleColeman (MO)Coleman (TX)Collins (IL)Collins (MI)CombestConditConyersCooperCostelloCoughlinCox (IL)CoyneCramerDannemeyerDardenDavisde la GarzaDeLauroDellumsDerrickDickinsonDicksDingellDixonDonnellyDooleyDorgan (ND)DowneyDuncanDurbinDwyerDymallyEarlyEckartEdwards (CA)Edwards (OK)Edwards (TX)EmersonEngelEnglishErdreichEspyEvansEwingFawellFazioFeighanFieldsFishFlakeFogliettaFord (MI)Ford (TN)Frank (MA)Franks (CT)FrostGalleglyGalloGaydosGejdensonGephardtGerenGilchrestGillmorGilman

GlickmanGonzalezGoodlingGordonGradisonGrandyGreenGuariniGundersonHall (OH)Hall (TX)HamiltonHansenHarrisHastertHatcherHayes (IL)Hayes (LA)HefnerHenryHergerHertelHoaglandHobsonHochbruecknerHollowayHopkinsHornHortonHoughtonHoyerHubbardHuckabyHughesHuttoHydeInhofeJacobsJeffersonJenkinsJohnson (CT)Johnson (SD)Johnson (TX)JonesKanjorskiKapturKasichKennedyKennellyKildeeKleczkaKlugKolbeKolterKopetskiKylLaFalceLagomarsinoLancasterLantosLaRoccoLaughlinLeachLehman (CA)Lehman (FL)LentLevin (MI)Levine (CA)Lewis (CA)Lewis (GA)LightfootLivingstonLloydLowery (CA)Lowey (NY)LukenMachtleyMantonMarkeyMartinMartinezMatsuiMavroulesMazzoliMcCandlessMcCloskeyMcCreryMcCurdyMcDadeMcDermottMcEwenMcGrathMcHughMcMillan (NC)McMillen (MD)McNultyMeyersMfumeMichelMiller (CA)

Miller (OH)Miller (WA)MinetaMinkMoakleyMolinariMollohanMontgomeryMoodyMoorheadMoranMorellaMorrisonMrazekMurphyMurthaMyersNagleNatcherNeal (MA)Neal (NC)NicholsNowakNussleOakarOlinOlverOrtizOrtonOwens (NY)Owens (UT)OxleyPanettaParkerPastorPattersonPaxonPayne (NJ)Payne (VA)PeasePelosiPerkinsPeterson (MN)PickettPicklePorterPoshardPricePursellQuillenRahallRamstadRangelRavenelRayReedRegulaRhodesRichardsonRiggsRinaldoRitterRobertsRoeRogersRoseRostenkowskiRoukemaRowlandRussoSaboSandersSangmeisterSantorumSarpaliusSavageSawyerSaxtonSchaeferScheuerSchiffSchroederSchulzeSchumerSerranoSharpShaysSisiskySkaggsSkeenSkeltonSlatterySlaughterSmith (IA)Smith (NJ)Smith (OR)Smith (TX)SnoweSolarzSpence

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