March 5, 2002 CONGRESSIONAL RECORD SENATE S1441 · 3/5/2002 · Renewable energy study. Sec. 407. Federal Power Marketing Adminis-trations. Sec. 408. Feasibility study of combined

CONGRESSIONAL RECORD — SENATE S1441March 5, 2002that puts in place a program askingAmericans to do certain things, notforcing them but asking them.

I hope we will look at new sources ofenergy, such as nuclear power, wind en-ergy, and solar energy—all the sourcesthat are renewable—and producing inour own country, creating the jobs inour country rather than exportingthem overseas, giving good livingwages to people in our country to drillfor our own natural resources. That isa balanced energy package. Anythingless would be an abdication of the re-sponsibility of the Senate.

I thank the Chair, and I yield thefloor.

f

RECESS

The PRESIDING OFFICER. Underthe previous order, the hour of 12:30p.m. having arrived, the Senate standsin recess until 2:15 p.m.

Thereupon, the Senate, at 12:34 p.m.,recessed until 2:15 p.m. and reassem-bled when called to order by the Pre-siding Officer (Ms. CANTWELL).

f

NATIONAL LABORATORIES PART-NERSHIP IMPROVEMENT ACT OF2001—Continued

The PRESIDING OFFICER. The Sen-ator from New Mexico.

AMENDMENT NO. 2917, AS FURTHER MODIFIED

Mr. BINGAMAN. Madam President, Iask unanimous consent that theamendment before the Senate be modi-fied with the language that is alreadyat the desk.

The PRESIDING OFFICER. Withoutobjection, the amendment is so modi-fied.

The amendment (No. 2917), as furthermodified, is as follows:

Strike all after the enacting clause and in-sert the following:SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Energy Pol-icy Act of 2002’’.SEC. 2. TABLE OF CONTENTS.Sec. 1. Short title.Sec. 2. Table of contents.DIVISION A—RELIABLE AND DIVERSE

POWER GENERATION AND TRANS-MISSION

TITLE I—REGIONAL COORDINATION

Sec. 101. Policy on regional coordination.Sec. 102. Federal support for regional coordi-

nation.

TITLE II—ELECTRICITY

Subtitle A—Amendments to the FederalPower Act

Sec. 201. Definitions.Sec. 202. Electric utility mergers.Sec. 203. Market-based rates.Sec. 204. Refund effective date.Sec. 205. Transmission interconnections.Sec. 206. Open access transmission by cer-

tain utilities.Sec. 207. Electric reliability standards.Sec. 208. Market transparency rules.Sec. 209. Access to transmission by inter-

mittent generators.Sec. 210. Enforcement.

Subtitle B—Amendments to the PublicUtility Holding Company Act

Sec. 221. Short title.

Sec. 222. Definitions.Sec. 223. Repeal of the Public Utility Hold-

ing Company Act of 1935.Sec. 224. Federal access to books and

records.Sec. 225. State access to books and records.Sec. 226. Exemption authority.Sec. 227. Affiliate transactions.Sec. 228. Applicability.Sec. 229. Effect on other regulations.Sec. 230. Enforcement.Sec. 231. Savings provisions.Sec. 232. Implementation.Sec. 233. Transfer of resources.Sec. 234. Inter-agency review of competition

in the wholesale and retail mar-kets for electric energy.

Sec. 235. GAO study on implementation.Sec. 236. Effective date.Sec. 237. Authorization of appropriations.Sec. 238. Conforming amendments to the

Federal Power Act.

Subtitle C—Amendments to the PublicUtility Regulatory Policies Act of 1978

Sec. 241. Real-time pricing standard.Sec. 242. Adoption of additional standards.Sec. 243. Technical assistance.Sec. 244. Cogeneration and small power pro-

duction purchase and sale re-quirements.

Sec. 245. Net metering.

Subtitle D—Consumer Protections

Sec. 251. Information disclosure.Sec. 252. Consumer privacy.Sec. 253. Unfair trade practices.Sec. 254. Applicable procedures.Sec. 255. Federal Trade Commission enforce-

ment.Sec. 256. State authority.Sec. 257. Application of subtitle.Sec. 258. Definitions.

Subtitle E—Renewable Energy and RuralConstruction Grants

Sec. 261. Renewable energy production in-centive.

Sec. 262. Assessment of renewable energy re-sources.

Sec. 263. Federal purchase requirement.Sec. 264. Rural construction grants.Sec. 265. Renewable portfolio standard.Sec. 266. Renewable energy on Federal land.

TITLE III—HYDROELECTRICRELICENSING

Sec. 301. Alternative mandatory conditionsand fishways.

Sec. 302. Charges for tribal lands.Sec. 303. Disposition of hydroelectric

charges.Sec. 304. Annual licenses.Sec. 305. Enforcement.Sec. 306. Establishment of hydroelectric re-

licensing procedures.Sec. 307. Relicensing study.Sec. 308. Data collection procedures.

TITLE IV—INDIAN ENERGY

Sec. 401. Comprehensive Indian energy pro-gram.

Sec. 402. Office of Indian Energy Policy andPrograms.

Sec. 403. Conforming amendments.Sec. 404. Siting energy facilities on tribal

lands.Sec. 405. Indian Mineral Development Act

review.Sec. 406. Renewable energy study.Sec. 407. Federal Power Marketing Adminis-

trations.Sec. 408. Feasibility study of combined wind

and hydropower demonstrationproject.

TITLE V—NUCLEAR POWER

Subtitle A—Price-Anderson ActReauthorization

Sec. 501. Short title.

Sec. 502. Extension of Department of Energyindemnification authority.

Sec. 503. Department of Energy liabilitylimit.

Sec. 504. Incidents outside the UnitedStates.

Sec. 505. Reports.Sec. 506. Inflation adjustment.Sec. 507. Civil penalties.Sec. 508. Effective date.

Subtitle B—Miscellaneous ProvisionsSec. 511. Uranium sales.Sec. 512. Reauthorization of thorium reim-

bursement.Sec. 513. Fast Flux Test Facility.

DIVISION B—DOMESTIC OIL AND GASPRODUCTION AND TRANSPORTATIONTITLE VI—OIL AND GAS PRODUCTION

Sec. 601. Permanent authority to operatethe Strategic Petroleum Re-serve.

Sec. 602. Federal onshore leasing programsfor oil and gas.

Sec. 603. Oil and gas lease acreage limita-tions.

Sec. 604. Orphaned and abandoned wells onFederal lands.

Sec. 605. Orphaned and abandoned oil andgas well program.

Sec. 606. Offshore development.Sec. 607. Coalbed methane study.Sec. 608. Fiscal policies to maximize recov-

ery of domestic oil and gas re-sources.

Sec. 609. Strategic Petroleum Reserve.TITLE VII—NATURAL GAS PIPELINESSubtitle A—Alaska Natural Gas Pipeline

Sec. 701. Short title.Sec. 702. Findings.Sec. 703. Purposes.Sec. 704. Issuance of certificate of public

convenience and necessity.Sec. 705. Environmental reviews.Sec. 706. Federal coordinator.Sec. 707. Judicial review.Sec. 708. Loan guarantee.Sec. 709. Study of alternative means of con-

struction.Sec. 710. Savings clause.Sec. 711. Clarification of authority to amend

terms and conditions to meetcurrent project requirements.

Sec. 712. Definitions.Sec. 713. Sense of the Senate.

Subtitle B—Operating PipelinesSec. 721. Application of the Historic Preser-

vation Act to operating pipe-lines.

Sec. 722. Environmental review and permit-ting of natural gas pipelineprojects.

DIVISION C—DIVERSIFYING ENERGYDEMAND AND IMPROVING EFFICIENCY

TITLE VIII—FUELS AND VEHICLESSubtitle A—CAFE Standards and Related

MattersSec. 801. Average fuel economy standards for

passenger automobiles andlight trucks.

Sec. 802. Fuel economy truth in testing.Sec. 803. Ensuring safety of passenger auto-

mobiles and light trucks.Sec. 804. High occupancy vehicle exception.Sec. 805. Credit trading program.Sec. 806. Green labels for fuel economy.Sec. 807. Light truck challenge.Sec. 808. Secretary of Transportation to cer-

tify benefits.Sec. 809. Department of Transportation en-

gineering award program.Sec. 810. Cooperative technology agree-

ments.Subtitle B—Alternative and Renewable

FuelsSec. 811. Increased use of alternative fuels

by federal fleets.

CONGRESSIONAL RECORD — SENATES1442 March 5, 2002Sec. 812. Exception to HOV passenger re-

quirements for alternative fuelvehicles.

Sec. 813. Data collection.Sec. 814. Green school bus pilot program.Sec. 815. Fuel cell bus development and dem-

onstration program.Sec. 816. Authorization of appropriations.Sec. 817. Biodiesel fuel use credits.Sec. 818. Neighborhood electric vehicles.Sec. 819. Renewable content of motor vehi-

cle fuel.Subtitle C—Additional Fuel Efficiency

MeasuresSec. 821. Fuel efficiency of the federal fleet

of automobiles.Sec. 822. Assistance for State programs to

retire fuel-inefficient motor ve-hicles.

Sec. 823. Idling reduction systems in heavyduty vehicles.

Subtitle D—Federal Reformulated FuelsSec. 831. Short title.Sec. 832. Leaking underground storage

tanks.Sec. 833. Authority for water quality protec-

tion from fuels.Sec. 834. Elimination of oxygen content re-

quirement for reformulatedgasoline.

Sec. 835. Public health and environmentalimpacts of fuels and fuel addi-tives.

Sec. 836. Analyses of motor vehicle fuelchanges.

Sec. 837. Additional opt-in areas under refor-mulated gasoline program.

Sec. 838. Federal enforcement of state fuelsrequirements.

Sec. 839. Fuel system requirementshamonization study.

TITLE IX —ENERGY EFFICIENCY AND AS-SISTANCE TO LOW INCOME CON-SUMERSSubtitle A—Low Income Assistance and

State Energy ProgramsSec. 901. Increased funding for LIHEAP,

weatherization assistance, andState energy grants.

Sec. 902. State energy programs.Sec. 903. Energy efficient schools.Sec. 904. Low income community energy ef-

ficiency pilot program.Subtitle B—Federal Energy Efficiency

Sec. 911. Energy management requirements.Sec. 912. Energy use measurement and ac-

countability.Sec. 913. Federal building performance

standards.Sec. 914. Procurement of energy efficient

products.Sec. 915. Repeal of energy savings perform-

ance contract sunset.Sec. 916. Energy savings performance con-

tract definitions.Sec. 917. Review of energy savings perform-

ance contract program.Sec. 918. Federal Energy Bank.Sec. 919. Energy and water saving measures

in Congressional buildings.Subtitle C—Industrial Efficiency and

Consumer ProductsSec. 921. Voluntary commitments to reduce

industrial energy intensity.Sec. 922. Authority to set standards for com-

mercial products.Sec. 923. Additional definitions.Sec. 924. Additional test procedures.Sec. 925. Energy labeling.Sec. 926. Energy Star Program.Sec. 927. Energy conservation standards for

central air conditioners andheat pumps.

Sec. 928. Energy conservation standards foradditional consumer and com-mercial products.

Sec. 929. Consumer education on energy effi-ciency benefits of air condi-tioning, heating, and ventila-tion maintenance.

Subtitle D—Housing EfficiencySec. 931. Capacity building for energy effi-

cient, affordable housing.Sec. 932. Increase of CDBG public services

cap for energy conservation andefficiency activities.

Sec. 933. FHA mortgage insurance incentivesfor energy efficient housing.

Sec. 934. Public housing capital fund.Sec. 935. Grants for energy-conserving im-

provements for assisted hous-ing.

Sec. 936. North American DevelopmentBank.

DIVISION D—INTEGRATION OF ENERGYPOLICY AND CLIMATE CHANGE POLICY

TITLE X—CLIMATE CHANGE POLICYFORMULATION

Subtitle A—Global WarmingSec. 1001. Sense of Congress on global warm-

ing.Subtitle B—Climate Change Strategy

Sec. 1011. Short title.Sec. 1012. Findings.Sec. 1013. Purpose.Sec. 1014. Definitions.Sec. 1015. United States Climate Change Re-

sponse Strategy.Sec. 1016. National Office of Climate Change

Response of the Executive Of-fice of the President.

Sec. 1017. Technology innovation programimplemented through the Officeof Climate Change Technologyof the Department of Energy.

Sec. 1018. Additional offices and activities.Sec. 1019. United States Climate Change Re-

sponse Strategy Review Board.Sec. 1020. Authorization of appropriations.Subtitle C—Science and Technology Policy

Sec. 1031. Global climate change in the Of-fice of Science and TechnologyPolicy.

Sec. 1032. Establishment of Associate Direc-tor for Global Climate Change.

Subtitle D—Miscellaneous ProvisionsSec. 1041. Additional information for regu-

latory review.Sec. 1042. Greenhouse gas emissions from

federal facilities.TITLE XI—NATIONAL GREENHOUSE GAS

DATABASESec. 1101. Purpose.Sec. 1102. Definitions.Sec. 1103. Establishment of memorandum of

agreement.Sec. 1104. National Greenhouse Gas Data-

base.Sec. 1105. Report on statutory changes and

harmonization.Sec. 1106. Measurement and verification.Sec. 1107. Independent review.Sec. 1108. Authorization of appropriations.

DIVISION E—ENHANCING RESEARCH,DEVELOPMENT, AND TRAINING

TITLE XII—ENERGY RESEARCH ANDDEVELOPMENT PROGRAMS

Sec. 1201. Short title.Sec. 1202. Findings.Sec. 1203. Definitions.Sec. 1204. Construction with other laws.

Subtitle A—Energy Efficiency

Sec. 1211. Enhanced energy efficiency re-search and development.

Sec. 1212. Energy efficiency science initia-tive.

Sec. 1213. Next generation lighting initia-tive.

Sec. 1214. Railroad efficiency.

Subtitle B—Renewable EnergySec. 1221. Enhanced renewable energy re-

search and development.Sec. 1222. Bioenergy programs.Sec. 1223. Hydrogen research and develop-

ment.Subtitle C—Fossil Energy

Sec. 1231. Enhanced fossil energy researchand development.

Sec. 1232. Power plant improvement initia-tive.

Sec. 1233. Research and development for ad-vanced safe and efficient coalmining technologies.

Sec. 1234. Ultra-deepwater and unconven-tional resource exploration andproduction technologies.

Sec. 1235. Research and development for newnatural gas transportationtechnologies.

Sec. 1236. Authorization of appropriationsfor Office of Arctic Energy.

Subtitle D—Nuclear EnergySec. 1241. Enhanced nuclear energy research

and development.Sec. 1242. University nuclear science and en-

gineering support.Sec. 1243. Nuclear energy research initia-

tive.Sec. 1244. Nuclear energy plant optimization

program.Sec. 1245. Nuclear energy technology devel-

opment program.Subtitle E—Fundamental Energy Science

Sec. 1251. Enhanced programs in funda-mental energy science.

Sec. 1252. Nanoscale science and engineeringresearch.

Sec. 1253. Advanced scientific computing forenergy missions.

Sec. 1254. Fusion energy sciences programand planning.

Subtitle F—Energy, Safety, andEnvironmental Protection

Sec. 1261. Critical energy infrastructure pro-tection research and develop-ment.

Sec. 1262. Pipeline integrity, safety, and re-liability research and develop-ment.

Sec. 1263. Research and demonstration forremediation of groundwaterfrom energy activities.

TITLE XIII—CLIMATE CHANGERESEARCH AND DEVELOPMENT

Subtitle A—Department of Energy ProgramsSec. 1301. Program goals.Sec. 1302. Department of Energy global

change science research.Sec. 1303. Amendments to the Federal Non-

nuclear Research and Develop-ment Act of 1974.

Subtitle B—Department of AgriculturePrograms

Sec. 1311. Carbon sequestration basic and ap-plied research.

Sec. 1312. Carbon sequestration demonstra-tion projects and outreach.

Subtitle C—Clean Energy TechnologyExports Program

Sec. 1321. Clean energy technology exportsprogram.

Sec. 1322. International energy technologydeployment program.

Subtitle D—Climate Change Science andInformation

PART I—AMENDMENTS TO THE GLOBALCHANGE RESEARCH ACT OF 1990

Sec. 1331. Amendment of Global Change Re-search Act of 1990.

Sec. 1332. Changes in definitions.Sec. 1333. Change in committee name.Sec. 1334. Change in national global change

research plan.Sec. 1335. Integrated Program Office.

CONGRESSIONAL RECORD — SENATE S1443March 5, 2002PART II—NATIONAL CLIMATE SERVICES

MONITORINGSec. 1341. Amendment of National Climate

Program Act.Sec. 1342. Changes in findings.Sec. 1343. Tools for regional planning.Sec. 1344. Authorization of appropriations.Sec. 1345. National Climate Service Plan.Sec. 1346. International Pacific Research

and Cooperation.Sec. 1347. Reporting on trends.

PART III—OCEAN AND COASTALOBSERVING SYSTEM

Sec. 1351. Ocean and coastal observing sys-tem.

Sec. 1352. Authorization of appropriations.Subtitle E—Climate Change Technology

Sec. 1361. NIST greenhouse gas functions.Sec. 1362. Development of new measurement

technologies.Sec. 1363. Enhanced environmental measure-

ments and standards.Sec. 1364. Technology development and dif-

fusion.Sec. 1365. Authorization of appropriations.Subtitle F—Climate Adaptation and Hazards

PreventionPART I—ASSESSMENT AND ADAPTATIONSec. 1371. Regional climate assessment and

adaptation program.Sec. 1372. Coastal vulnerability and adapta-

tion.PART II—FORECASTING AND PLANNING

PILOT PROGRAMSSec. 1381. Remote sensing pilot projects.Sec. 1382. Database establishment.Sec. 1383. Definitions.Sec. 1384. Authorization of appropriations.

TITLE XIV—MANAGEMENT OF DOESCIENCE AND TECHNOLOGY PROGRAMS

Sec. 1401. Definitions.Sec. 1402. Availability of funds.Sec. 1403. Cost sharing.Sec. 1404. Merit review of proposals.Sec. 1405. External technical review of de-

partmental programs.Sec. 1406. Improved coordination and man-

agement of civilian science andtechnology programs.

Sec. 1407. Improved coordination of tech-nology transfer activities.

Sec. 1408. Technology infrastructure pro-gram.

Sec. 1409. Small business advocacy and as-sistance.

Sec. 1410. Other transactions.Sec. 1411. Mobility of scientific and tech-

nical personnel.Sec. 1412. National Academy of Sciences re-

port.Sec. 1413. Report on technology readiness

and barriers to technologytransfer.

TITLE XV—PERSONNEL AND TRAININGSec. 1501. Workforce trends and traineeship

grants.Sec. 1502. Postdoctoral and senior research

fellowships in energy research.Sec. 1503. Training guidelines for electric

energy industry personnel.Sec. 1504. National Center on Energy Man-

agement and Building Tech-nologies.

Sec. 1505. Improved access to energy-relatedscientific and technical careers.

DIVISION F—TECHNOLOGY ASSESSMENTAND STUDIES

TITLE XVI—TECHNOLOGY ASSESSMENTSec. 1601. National Science and Technology

Assessment Service.TITLE XVII—STUDIES

Sec. 1701. Regulatory reviews.Sec. 1702. Assessment of dependence of Ha-

waii on oil.

Sec. 1703. Study of siting an electric trans-mission system on Amtrakright-of-way.

DIVISION G—ENERGY INFRASTRUCTURESECURITY

TITLE XVIII—CRITICAL ENERGYINFRASTRUCTURE

Subtitle A—Department of Energy ProgramsSec. 1801. Definitions.Sec. 1802. Role of the Department of Energy.Sec. 1803. Critical energy infrastructure pro-

grams.Sec. 1804. Advisory Committee on Energy

Infrastructure Security.Sec. 1805. Best practices and standards for

energy infrastructure security.Subtitle B—Department of the Interior

ProgramsSec. 1811. Outer Continental Shelf energy in-

frastructure security.DIVISION A—RELIABLE AND DIVERSE

POWER GENERATION AND TRANSMISSIONTITLE I—REGIONAL COORDINATION

SEC. 101. POLICY ON REGIONAL COORDINATION.(a) STATEMENT OF POLICY.—It is the policy

of the Federal Government to encourageStates to coordinate, on a regional basis,State energy policies to provide reliable andaffordable energy services to the publicwhile minimizing the impact of providing en-ergy services on communities and the envi-ronment.

(b) DEFINITION OF ENERGY SERVICES.—Forpurposes of this section, the term ‘‘energyservices’’ means—

(1) the generation or transmission of elec-tric energy,

(2) the transportation, storage, and dis-tribution of crude oil, residual fuel oil, re-fined petroleum product, or natural gas, or

(3) the reduction in load through increasedefficiency, conservation, or load controlmeasures.SEC. 102. FEDERAL SUPPORT FOR REGIONAL CO-

ORDINATION.(a) TECHNICAL ASSISTANCE.—The Secretary

of Energy shall provide technical assistanceto States and regional organizations formedby two or more States to assist them in co-ordinating their energy policies on a re-gional basis. Such technical assistance mayinclude assistance in—

(1) assessing future supply availability anddemand requirements,

(2) planning and siting additional energyinfrastructure, including generating facili-ties, electric transmission facilities, pipe-lines, refineries, and distributed generationfacilities to meet regional needs,

(3) identifying and resolving problems indistribution networks,

(4) developing plans to respond to surge de-mand or emergency needs, and

(5) developing renewable energy, energy ef-ficiency, conservation, and load control pro-grams.

(b) ANNUAL CONFERENCE ON REGIONAL EN-ERGY COORDINATION.—

(1) ANNUAL CONFERENCE.—The Secretary ofEnergy shall convene an annual conferenceto promote regional coordination on energypolicy and infrastructure issues.

(2) PARTICIPATION.—The Secretary of En-ergy shall invite appropriate representativesof Federal, State, and regional energy orga-nizations, and other interested parties.

(3) STATE AND FEDERAL AGENCY COOPERA-TION.—The Secretary of Energy shall consultand cooperate with State and regional en-ergy organizations, the Secretary of the In-terior, the Secretary of Agriculture, the Sec-retary of Commerce, the Secretary of theTreasury, the Chairman of the Federal En-ergy Regulatory Commission, the Adminis-trator of the Environmental Protection

Agency, and the Chairman of the Council onEnvironmental Quality in the planning andconduct of the conference.

(4) AGENDA.—The Secretary of Energy, inconsultation with the officials identified inparagraph (3) and participants identified inparagraph (2), shall establish an agenda foreach conference that promotes regional co-ordination on energy policy and infrastruc-ture issues.

(5) RECOMMENDATIONS.—Not later than 60days after the conclusion of each annual con-ference, the Secretary of Energy shall reportto the President and the Congress rec-ommendations arising out of the conferencethat may improve—

(A) regional coordination on energy policyand infrastructure issues, and

(B) Federal support for regional coordina-tion.

TITLE II—ELECTRICITYSubtitle A—Amendments to the Federal

Power ActSEC. 201. DEFINITIONS.

(a) DEFINITION OF ELECTRIC UTILITY.—Sec-tion 3(22) of the Federal Power Act (16 U.S.C.796(22)) is amended to read as follows:

‘‘(22) ‘electric utility’ means any person orFederal or State agency (including any mu-nicipality) that sells electric energy; suchterm includes the Tennessee Valley Author-ity and each Federal power marketing agen-cy.

(b) DEFINITION OF TRANSMITTING UTILITY.—Section 3(23) of the Federal Power Act (16U.S.C. 796(23)) is amended to read as follows:

‘‘(23) TRANSMITTING UTILITY.—The term‘transmitting utility’ means an entity (in-cluding any entity described in section201(f)) that owns or operates facilities usedfor the transmission of electric energy in—

‘‘(A) interstate commerce; or‘‘(B) for the sale of electric energy at

wholesale.’’.SEC. 202. ELECTRIC UTILITY MERGERS.

Section 203(a) of the Federal Power Act (16U.S.C. 824b) is amended to read as follows:

‘‘(a)(1) No public utility shall, without firsthaving secured an order of the Commissionauthorizing it to do so—

‘‘(A) sell, lease, or otherwise dispose of thewhole of its facilities subject to the jurisdic-tion of the Commission, or any part thereofof a value in excess of $1,000,000,

‘‘(B) merge or consolidate, directly or indi-rectly, such facilities or any part thereofwith the facilities of any other person, byany means whatsoever,

‘‘(C) purchase, acquire, or take any secu-rity of any other public utility, or

‘‘(D) purchase, lease, or otherwise acquireexisting facilities for the generation of elec-tric energy or for the production or transpor-tation of natural gas.

‘‘(2) No holding company in a holding com-pany system that includes a transmittingutility or an electric utility company shallpurchase, acquire, or take any security of,or, by any means whatsoever, directly or in-directly, merge or consolidate with a trans-mitting utility, an electric utility company,a gas utility company, or a holding companyin a holding company system that includes atransmitting utility, an electric utility com-pany, or a gas utility company, without firsthaving secured an order of the Commissionauthorizing it to do so.

‘‘(3) Upon application for such approval theCommission shall give reasonable notice inwriting to the Governor and State commis-sion of each of the States in which the phys-ical property affected, or any part thereof, issituated, and to such other persons as it maydeem advisable.

‘‘(4) After notice and opportunity for hear-ing, if the Commission finds that the pro-posed disposition, consolidation, acquisition,

CONGRESSIONAL RECORD — SENATES1444 March 5, 2002or control will be consistent with the publicinterest, it shall approve the same.

‘‘(5) For purposes of this subsection, theterms ‘electric utility company’, ‘gas utilitycompany’, ‘holding company’, and ‘holdingcompany system’ have the meaning giventhose terms in the Public Utility HoldingCompany Act of 2002.

‘‘(6) Notwithstanding section 201(b)(1), fa-cilities used for the generation of electric en-ergy shall be subject to the jurisdiction ofthe Commission for purposes of this sec-tion.’’.SEC. 203. MARKET-BASED RATES.

(a) APPROVAL OF MARKET-BASED RATES.—Section 205 of the Federal Power Act (16U.S.C. 824d) is amended by adding at the endthe following:

‘‘(h) The Commission may determinewhether a market-based rate for the sale ofelectric energy subject to the jurisdiction ofthe Commission is just and reasonable andnot unduly discriminatory or preferential. Inmaking such determination, the Commissionshall consider—

‘‘(1) whether the seller and its affiliateshave, or have adequately mitigated, marketpower in the generation and transmission ofelectric energy;

‘‘(2) whether the sale is made in a competi-tive market;

‘‘(3) whether market mechanisms, such aspower exchanges and bid auctions, functionadequately;

‘‘(4) the effect of demand response mecha-nisms;

‘‘(5) the effect of mechanisms or require-ments intended to ensure adequate reservemargins; and

‘‘(6) other such considerations as the Com-mission may deem to be appropriate and inthe public interest.’’.

(b) REVOCATION OF MARKET-BASED RATES.—Section 206 of the Federal Power Act (16U.S.C. 824e) is amended by adding at the endthe following:

‘‘(f) Whenever the Commission, after ahearing had upon its own motion or uponcomplaint, finds that a rate charged by apublic utility authorized to charge a market-based rate under section 205 is unjust, unrea-sonable, unduly discriminatory or pref-erential, the Commission shall determinethe just and reasonable rate and fix the sameby order in accordance with this section, ororder such other action as will, in the judg-ment of the Commission, adequately ensurea just and reasonable market-based rate.’’.SEC. 204. REFUND EFFECTIVE DATE.

Section 206(b) of the Federal Power Act (16U.S.C. 824e(b)) is amended by—

(1) striking ‘‘60 days after the filing of suchcomplaint nor later than 5 months after theexpiration of such 60-day period’’ in the sec-ond sentence and inserting ‘‘on which thecomplaint is filed’’; and

(2) striking ‘‘60 days after the publicationby the Commission of notice of its intentionto initiate such proceeding nor later than 5months after the expiration of such 60-dayperiod’’ in the third sentence and inserting‘‘on which the Commission publishes noticeof its intention to initiate such proceeding’’.SEC. 205. TRANSMISSION INTERCONNECTIONS.

Section 210 of the Federal Power Act (16U.S.C. 824i) is amended to read as follows:‘‘TRANSMISSION INTERCONNECTION AUTHORITY

‘‘SEC. 210. (a)(1) The Commission shall, byrule, establish technical standards and pro-cedures for the interconnection of facilitiesused for the generation of electric energywith facilities used for the transmission ofelectric energy in interstate commerce. Therule shall provide—

‘‘(A) criteria to ensure that an inter-connection will not unreasonably impair thereliability of the transmission system; and

‘‘(B) criteria for the apportionment or re-imbursement of the costs of making theinterconnection.

‘‘(2) Notwithstanding section 201(f), atransmitting utility shall interconnect itstransmission facilities with the generationfacilities of a power producer upon the appli-cation of the power producer if the powerproducer complies with the requirements ofthe rule.

‘‘(b) Upon the application of a power pro-ducer or its own motion, the Commissionmay, after giving notice and an opportunityfor a hearing to any entity whose interestmay be affected, issue an order requiring—

‘‘(1) the physical connection of facilitiesused for the generation of electric energywith facilities used for the transmission ofelectric energy in interstate commerce;

‘‘(2) such action as may be necessary tomake effective any such physical connec-tion;

‘‘(3) such sale or exchange of electric en-ergy or other coordination, as may be nec-essary to carry out the purposes of suchorder; or

‘‘(4) such increase in transmission capacityas may be necessary to carry out the pur-poses of such order.

‘‘(c) As used in this section, the term‘power producer’ means an entity that ownsor operates a facility used for the generationof electric energy.’’.SEC. 206. OPEN ACCESS TRANSMISSION BY CER-

TAIN UTILITIES.Part II of the Federal Power Act is further

amended by inserting after section 211 thefollowing:‘‘OPEN ACCESS BY UNREGULATED TRANSMITTING

UTILITIES

‘‘SEC. 211A. (1) Subject to section 212(h),the Commission may, by rule or order, re-quire an unregulated transmitting utility toprovide transmission services—

‘‘(A) at rates that are comparable to thosethat the unregulated transmitting utilitycharges itself, and

‘‘(B) on terms and conditions (not relatingto rates) that are comparable to those underCommission rules that require public utili-ties to offer open access transmission serv-ices and that are not unduly discriminatoryor preferential.

‘‘(2) The Commission shall exempt fromany rule or order under this subsection anyunregulated transmitting utility that—

‘‘(A) sells no more than 4,000,000 megawatthours of electricity per year,

‘‘(B) does not own or operate any trans-mission facilities that are necessary for op-erating an interconnected transmission sys-tem (or any portion thereof), or

‘‘(C) meets other criteria the Commissiondetermines to be in the public interest.

‘‘(3) The rate changing procedures applica-ble to public utilities under subsections (c)and (d) of section 205 are applicable to un-regulated transmitting utilities for purposesof this section.

‘‘(4) In exercising its authority under para-graph (1), the Commission may remandtransmission rates to an unregulated trans-mitting utility for review and revision wherenecessary to meet the requirements of para-graph (1).

‘‘(5) The provision of transmission servicesunder paragraph (1) does not preclude a re-quest for transmission services under section211.

‘‘(6) The Commission may not require aState or municipality to take action underthis section that constitutes a private busi-ness use for purposes of section 141 of the In-ternal Revenue Code of 1986 (26 U.S.C. 141).

‘‘(7) For purposes of this subsection, theterm ‘unregulated transmitting utility’means an entity that—

‘‘(A) owns or operates facilities used forthe transmission of electric energy in inter-state commerce, and

‘‘(B) is either an entity described in section201(f) or a rural electric cooperative.’’.SEC. 207. ELECTRIC RELIABILITY STANDARDS.

Part II of the Federal Power Act is furtheramended by adding at the end the following:‘‘SEC. 215. ELECTRIC RELIABILITY STANDARDS.

‘‘(a) DUTY OF THE COMMISSION.—The Com-mission shall establish and enforce one ormore systems of mandatory electric reli-ability standards to ensure the reliable oper-ation of the interstate transmission system,which shall be applicable to—

‘‘(1) any entity that sells, purchases, ortransmits, electric energy using the inter-state transmission system, and

‘‘(2) any entity that owns, operates, ormaintains facilities that are a part of theinterstate transmission system.

‘‘(b) STANDARDS.—In carrying out its re-sponsibility under subsection (a), the Com-mission may adopt and enforce, in whole orin part, a reliability standard proposed oradopted by the North American Electric Re-liability Council, a regional reliability coun-cil, a similar organization, or a State regu-latory authority.

‘‘(c) ENFORCEMENT.—In carrying out its re-sponsibility under subsection (a), the Com-mission may certify one or more self-regu-lating reliability organizations (which mayinclude the North American Electric Reli-ability Council, one or more regional reli-ability councils, one or more regional trans-mission organizations, or any similar organi-zation) to ensure the reliable operation ofthe interstate transmission system and tomonitor and enforce compliance of theirmembers with electric reliability standardsadopted under this section.

‘‘(d) COOPERATION WITH CANADA AND MEX-ICO.—The Commission shall ensure that anyself-regulating reliability organization cer-tified under this section, one or more ofwhose members are interconnected withtransmitting utilities in Canada or the Re-public of Mexico, provide for the participa-tion of such utilities in the governance ofthe organization and the adoption of reli-ability standards. Nothing in this sectionshall be construed to extend the jurisdictionof the Commission outside of the UnitedStates.

‘‘(e) PRESERVATION OF STATE AUTHORITY.—Nothing in this section shall be construed topreempt the authority of any State to takeaction to ensure the safety, adequacy, andreliability of local distribution facilitiesservice within the State, except where theexercise of such authority unreasonably im-pairs the reliability of the interstate trans-mission system.

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

‘‘(1) The term ‘interstate transmission sys-tem’ means the network of facilities used forthe transmission of electric energy in inter-state commerce.

‘‘(2) The term ‘reliability’ means the abil-ity of the interstate transmission system totransmit sufficient electric energy to supplythe aggregate electric demand and energy re-quirements of electricity consumers at alltimes and the ability of the system to with-stand sudden disturbances.’’.SEC. 208. MARKET TRANSPARENCY RULES.

Part II of the Federal Power Act is furtheramended by adding at the end the following:‘‘SEC. 216. MARKET TRANSPARENCY RULES.

‘‘(a) COMMISSION RULES.—Not later than 180days after the date of enactment of this sec-tion, the Commission shall issue rules estab-lishing an electronic information system toprovide information about the availabilityand price of wholesale electric energy and

CONGRESSIONAL RECORD — SENATE S1445March 5, 2002transmission services to the Commission,state commissions, buyers and sellers ofwholesale electric energy, users of trans-mission services, and the public on a timelybasis.

‘‘(b) INFORMATION REQUIRED.—The Commis-sion shall require—

‘‘(1) each regional transmission organiza-tion to provide statistical information aboutthe available capacity and capacity con-straints of transmission facilities operatedby the organization; and

‘‘(2) each broker, exchange, or other mar-ket-making entity that matches offers tosell and offers to buy wholesale electric en-ergy in interstate commerce to provide sta-tistical information about the amount andsale price of sales of electric energy atwholesale in interstate commerce it trans-acts.

‘‘(c) TIMELY BASIS.—The Commission shallrequire the information required under sub-section (b) to be posted on the Internet assoon as practicable and updated as fre-quently as practicable.

‘‘(d) PROTECTION OF SENSITIVE INFORMA-TION.—The Commission shall exempt fromdisclosure commercial or financial informa-tion that the Commission, by rule or order,determines to be privileged, confidential, orotherwise sensitive.’’.SEC. 209. ACCESS TO TRANSMISSION BY INTER-

MITTENT GENERATORS.Part II of the Federal Power Act is further

amended by adding at the end the following:‘‘SEC. 217. ACCESS TO TRANSMISSION BY INTER-

MITTENT GENERATORS.‘‘(a) FAIR TREATMENT OF INTERMITTENT

GENERATORS.—The Commission shall ensurethat all transmitting utilities provide trans-mission service to intermittent generators ina manner that does not penalize such genera-tors, directly or indirectly, for characteris-tics that are—

‘‘(1) inherent to intermittent energy re-sources; and

‘‘(2) are beyond the control of such genera-tors.

‘‘(b) POLICIES.—The Commission shall en-sure that the requirement in subsection (a)is met by adopting such policies as it deemsappropriate which shall include, but not belimited to, the following:

‘‘(1) Subject to the sole exception set forthin paragraph (2), the Commission shall en-sure that the rates transmitting utilitiescharge intermittent generator customers fortransmission services do not directly or indi-rectly penalize intermittent generator cus-tomers for scheduling deviations.

‘‘(2) The Commission may exempt a trans-mitting utility from the requirement setforth in subsection (b) if the transmittingutility demonstrates that scheduling devi-ations by its intermittent generator cus-tomers are likely to have a substantial ad-verse impact on the reliability of the trans-mitting utility’s system. For purposes of ad-ministering this exemption, there shall be arebuttable presumption of no adverse impactwhere intermittent generators collectivelyconstitute 20 percent or less of total genera-tion interconnected with transmitting util-ity’s system and using transmission servicesprovided by transmitting utility.

‘‘(3) The Commission shall ensure that tothe extent any transmission charges recov-ering the transmitting utility’s embeddedcosts are assessed to intermittent genera-tors, they are assessed to such generators onthe basis of kilowatt-hours generated ratherthan the intermittent generator’s capacity.

‘‘(4) The Commission shall require trans-mitting utilities to offer to intermittentgenerators, and may require transmittingutilities to offer to all transmission cus-tomers, access to nonfirm transmission serv-

ice pursuant to long-term contracts of up toten years duration under reasonable termsand conditions.

‘‘(c) DEFINITIONS.—As used in this section:‘‘(1) The term ‘intermittent generator’

means a facility that generates electricityusing wind or solar energy and no other en-ergy source.

‘‘(2) The term ‘nonfirm transmission serv-ice’ means transmission service provided onan ‘as available’ basis.

‘‘(3) The term ‘scheduling deviation’ meansdelivery of more or less energy than has pre-viously been forecast in a schedule sub-mitted by an intermittent generator to acontrol area operator or transmitting util-ity.’’.SEC. 210. ENFORCEMENT.

(a) COMPLAINTS.—Section 306 of the FederalPower Act (16 U.S.C. 825e) is amended by—

(1) inserting ‘‘electric utility,’’ after ‘‘Anyperson,’’; and

(2) inserting ‘‘transmitting utility,’’ after‘‘licensee’’ each place it appears.

(b) INVESTIGATIONS.—Section 307(a) of theFederal Power Act (16 U.S.C. 825f(a)) isamended by inserting ‘‘or transmitting util-ity’’ after ‘‘any person’’ in the first sentence.

(c) REVIEW OF COMMISSION ORDERS.—Sec-tion 313(a) of the Federal Power Act (16U.S.C. 8251) is amended by inserting ‘‘electricutility,’’ after ‘‘Any person,’’ in the first sen-tence.

(d) CRIMINAL PENALTIES.—Section 316(c) ofthe Federal Power Act (16 U.S.C. 825o(c)) isrepealed.

(e) CIVIL PENALTIES.—Section 316A of theFederal Power Act (16 U.S.C. 825o–1) isamended by striking ‘‘section 211, 212, 213, or214’’ each place it appears and inserting‘‘Part II’’.Subtitle B—Amendments to the Public Utility

Holding Company ActSEC. 221. SHORT TITLE.

This subtitle may be cited as the ‘‘PublicUtility Holding Company Act of 2002’’.SEC. 222. DEFINITIONS.

For purposes of this subtitle:(1) The term ‘‘affiliate’’ of a company

means any company, 5 percent or more ofthe outstanding voting securities of whichare owned, controlled, or held with power tovote, directly or indirectly, by such com-pany.

(2) The term ‘‘associate company’’ of acompany means any company in the sameholding company system with such company.

(3) The term ‘‘Commission’’ means theFederal Energy Regulatory Commission.

(4) The term ‘‘company’’ means a corpora-tion, partnership, association, joint stockcompany, business trust, or any organizedgroup of persons, whether incorporated ornot, or a receiver, trustee, or other liqui-dating agent of any of the foregoing.

(5) The term ‘‘electric utility company’’means any company that owns or operatesfacilities used for the generation, trans-mission, or distribution of electric energy forsale.

(6) The terms ‘‘exempt wholesale gener-ator’’ and ‘‘foreign utility company’’ havethe same meanings as in sections 32 and 33,respectively, of the Public Utility HoldingCompany Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those sections existed on the day be-fore the effective date of this subtitle.

(7) The term ‘‘gas utility company’’ meansany company that owns or operates facilitiesused for distribution at retail (other thanthe distribution only in enclosed portablecontainers or distribution to tenants or em-ployees of the company operating such fa-cilities for their own use and not for resale)of natural or manufactured gas for heat,light, or power.

(8) The term ‘‘holding company’’ means—

(A) any company that directly or indi-rectly owns, controls, or holds, with power tovote, 10 percent or more of the outstandingvoting securities of a public utility companyor of a holding company of any public utilitycompany; and

(B) any person, determined by the Commis-sion, after notice and opportunity for hear-ing, to exercise directly or indirectly (eitheralone or pursuant to an arrangement or un-derstanding with one or more persons) sucha controlling influence over the managementor policies of any public utility company orholding company as to make it necessary orappropriate for the rate protection of utilitycustomers with respect to rates that suchperson be subject to the obligations, duties,and liabilities imposed by this subtitle uponholding companies.

(9) The term ‘‘holding company system’’means a holding company, together with itssubsidiary companies.

(10) The term ‘‘jurisdictional rates’’ meansrates established by the Commission for thetransmission of electric energy in interstatecommerce, the sale of electric energy atwholesale in interstate commerce, the trans-portation of natural gas in interstate com-merce, and the sale in interstate commerceof natural gas for resale for ultimate publicconsumption for domestic, commercial, in-dustrial, or any other use.

(11) The term ‘‘natural gas company’’means a person engaged in the transpor-tation of natural gas in interstate commerceor the sale of such gas in interstate com-merce for resale.

(12) The term ‘‘person’’ means an indi-vidual or company.

(13) The term ‘‘public utility’’ means anyperson who owns or operates facilities usedfor transmission of electric energy in inter-state commerce or sales of electric energy atwholesale in interstate commerce.

(14) The term ‘‘public utility company’’means an electric utility company or a gasutility company.

(15) The term ‘‘State commission’’ meansany commission, board, agency, or officer, bywhatever name designated, of a State, mu-nicipality, or other political subdivision of aState that, under the laws of such State, hasjurisdiction to regulate public utility compa-nies.

(16) The term ‘‘subsidiary company’’ of aholding company means—

(A) any company, 10 percent or more of theoutstanding voting securities of which aredirectly or indirectly owned, controlled, orheld with power to vote, by such holdingcompany; and

(B) any person, the management or policiesof which the Commission, after notice andopportunity for hearing, determines to besubject to a controlling influence, directly orindirectly, by such holding company (eitheralone or pursuant to an arrangement or un-derstanding with one or more other persons)so as to make it necessary for the rate pro-tection of utility customers with respect torates that such person be subject to the obli-gations, duties, and liabilities imposed bythis subtitle upon subsidiary companies ofholding companies.

(17) The term ‘‘voting security’’ means anysecurity presently entitling the owner orholder thereof to vote in the direction ormanagement of the affairs of a company.SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLD-

ING COMPANY ACT OF 1935.The Public Utility Holding Company Act

of 1935 (15 U.S.C. 79 et seq.) is repealed.SEC. 224. FEDERAL ACCESS TO BOOKS AND

RECORDS.(a) IN GENERAL.—Each holding company

and each associate company thereof shallmaintain, and shall make available to the

CONGRESSIONAL RECORD — SENATES1446 March 5, 2002Commission, such books, accounts, memo-randa, and other records as the Commissiondeems to be relevant to costs incurred by apublic utility or natural gas company that isan associate company of such holding com-pany and necessary or appropriate for theprotection of utility customers with respectto jurisdictional rates.

(b) AFFILIATE COMPANIES.—Each affiliate ofa holding company or of any subsidiary com-pany of a holding company shall maintain,and shall make available to the Commission,such books, accounts, memoranda, and otherrecords with respect to any transaction withanother affiliate, as the Commission deemsto be relevant to costs incurred by a publicutility or natural gas company that is an as-sociate company of such holding companyand necessary or appropriate for the protec-tion of utility customers with respect to ju-risdictional rates.

(c) HOLDING COMPANY SYSTEMS.—The Com-mission may examine the books, accounts,memoranda, and other records of any com-pany in a holding company system, or anyaffiliate thereof, as the Commission deemsto be relevant to costs incurred by a publicutility or natural gas company within suchholding company system and necessary orappropriate for the protection of utility cus-tomers with respect to jurisdictional rates.

(d) CONFIDENTIALITY.—No member, officer,or employee of the Commission shall divulgeany fact or information that may come tohis or her knowledge during the course of ex-amination of books, accounts, memoranda,or other records as provided in this section,except as may be directed by the Commis-sion or by a court of competent jurisdiction.SEC. 225. STATE ACCESS TO BOOKS AND

RECORDS.(a) IN GENERAL.—Upon the written request

of a State commission having jurisdiction toregulate a public utility company in a hold-ing company system, the holding companyor any associate company or affiliate there-of, other than such public utility company,wherever located, shall produce for inspec-tion books, accounts, memoranda, and otherrecords that—

(1) have been identified in reasonable de-tail by the State commission;

(2) the State commission deems are rel-evant to costs incurred by such public utilitycompany; and

(3) are necessary for the effective dischargeof the responsibilities of the State commis-sion with respect to such proceeding.

(b) LIMITATION.—Subsection (a) does notapply to any person that is a holding com-pany solely by reason of ownership of one ormore qualifying facilities under the PublicUtility Regulatory Policies Act of 1978 (16U.S.C. 2601 et seq.).

(c) CONFIDENTIALITY OF INFORMATION.—Theproduction of books, accounts, memoranda,and other records under subsection (a) shallbe subject to such terms and conditions asmay be necessary and appropriate to safe-guard against unwarranted disclosure to thepublic of any trade secrets or sensitive com-mercial information.

(d) EFFECT ON STATE LAW.—Nothing in thissection shall preempt applicable State lawconcerning the provision of books, accounts,memoranda, and other records, or in anyway limit the rights of any State to obtainbooks, accounts, memoranda, and otherrecords under any other Federal law, con-tract, or otherwise.

(e) COURT JURISDICTION.—Any UnitedStates district court located in the State inwhich the State commission referred to insubsection (a) is located shall have jurisdic-tion to enforce compliance with this section.SEC. 226. EXEMPTION AUTHORITY.

(a) RULEMAKING.—Not later than 90 daysafter the effective date of this subtitle, the

Commission shall promulgate a final rule toexempt from the requirements of section 224any person that is a holding company, solelywith respect to one or more—

(1) qualifying facilities under the PublicUtility Regulatory Policies Act of 1978 (16U.S.C. 2601 et seq.);

(2) exempt wholesale generators; or(3) foreign utility companies.(b) OTHER AUTHORITY.—The Commission

shall exempt a person or transaction fromthe requirements of section 224, if, upon ap-plication or upon the motion of theCommission—

(1) the Commission finds that the books,accounts, memoranda, and other records ofany person are not relevant to the jurisdic-tional rates of a public utility or natural gascompany; or

(2) the Commission finds that any class oftransactions is not relevant to the jurisdic-tional rates of a public utility or natural gascompany.SEC. 227. AFFILIATE TRANSACTIONS.

(a) COMMISSION AUTHORITY UNAFFECTED.—Nothing in this subtitle shall limit the au-thority of the Commission under the FederalPower Act (16 U.S.C. 791a et seq.) to requirethat jurisdictional rates are just and reason-able, including the ability to deny or approvethe pass through of costs, the prevention ofcross-subsidization, and the promulgation ofsuch rules and regulations as are necessaryor appropriate for the protection of utilityconsumers.

(b) RECOVERY OF COSTS.—Nothing in thissubtitle shall preclude the Commission or aState commission from exercising its juris-diction under otherwise applicable law to de-termine whether a public utility company,public utility, or natural gas company mayrecover in rates any costs of an activity per-formed by an associate company, or anycosts of goods or services acquired by suchpublic utility company from an associatecompany.SEC. 228. APPLICABILITY.

Except as otherwise specifically providedin this subtitle, no provision of this subtitleshall apply to, or be deemed to include—

(1) the United States;(2) a State or any political subdivision of a

State;(3) any foreign governmental authority not

operating in the United States;(4) any agency, authority, or instrumen-

tality of any entity referred to in paragraph(1), (2), or (3); or

(5) any officer, agent, or employee of anyentity referred to in paragraph (1), (2), or (3)acting as such in the course of his or her offi-cial duty.SEC. 229. EFFECT ON OTHER REGULATIONS.

Nothing in this subtitle precludes the Com-mission or a State commission from exer-cising its jurisdiction under otherwise appli-cable law to protect utility customers.SEC. 230. ENFORCEMENT.

The Commission shall have the same pow-ers as set forth in sections 306 through 317 ofthe Federal Power Act (16 U.S.C. 825e–825p)to enforce the provisions of this subtitle.SEC. 231. SAVINGS PROVISIONS.

(a) IN GENERAL.—Nothing in this subtitleprohibits a person from engaging in or con-tinuing to engage in activities or trans-actions in which it is legally engaged or au-thorized to engage on the effective date ofthis subtitle.

(b) EFFECT ON OTHER COMMISSION AUTHOR-ITY.—Nothing in this subtitle limits the au-thority of the Commission under the FederalPower Act (16 U.S.C. 791a et seq.) (includingsection 301 of that Act) or the Natural GasAct (15 U.S.C. 717 et seq.) (including section8 of that Act).

SEC. 232. IMPLEMENTATION.Not later than 18 months after the date of

enactment of this subtitle, the Commissionshall—

(1) promulgate such regulations as may benecessary or appropriate to implement thissubtitle (other than section 225); and

(2) submit to the Congress detailed rec-ommendations on technical and conformingamendments to Federal law necessary tocarry out this subtitle and the amendmentsmade by this subtitle.SEC. 233. TRANSFER OF RESOURCES.

All books and records that relate primarilyto the functions transferred to the Commis-sion under this subtitle shall be transferredfrom the Securities and Exchange Commis-sion to the Commission.SEC. 234. INTER-AGENCY REVIEW OF COMPETI-

TION IN THE WHOLESALE AND RE-TAIL MARKETS FOR ELECTRIC EN-ERGY.

(a) TASK FORCE.—There is established aninter-agency task force, to be known as the‘‘Electric Energy Market Competition TaskForce’’ (referred to in this section as the‘‘task force’’), which shall consist of—

(1) 1 member each from—(A) the Department of Justice, to be ap-

pointed by the Attorney General of theUnited States;

(B) the Federal Energy Regulatory Com-mission, to be appointed by the chairman ofthat Commission; and

(C) the Federal Trade Commission, to beappointed by the chairman of that Commis-sion; and

(2) 2 advisory members (who shall notvote), of whom—

(A) 1 shall be appointed by the Secretary ofAgriculture to represent the Rural UtilityService; and

(B) 1 shall be appointed by the Chairman ofthe Securities and Exchange Commission torepresent that Commission.

(b) STUDY AND REPORT.—(1) STUDY.—The task force shall perform a

study and analysis of the protection and pro-motion of competition within the wholesaleand retail market for electric energy in theUnited States.

(2) REPORT.—(A) FINAL REPORT.—Not later than 1 year

after the effective date of this subtitle, thetask force shall submit a final report of itsfindings under paragraph (1) to the Congress.

(B) PUBLIC COMMENT.—At least 60 days be-fore submission of a final report to the Con-gress under subparagraph (A), the task forceshall publish a draft report in the FederalRegister to provide for public comment.

(c) FOCUS.—The study required by this sec-tion shall examine—

(1) the best means of protecting competi-tion within the wholesale and retail electricmarket;

(2) activities within the wholesale and re-tail electric market that may allow unfairand unjustified discriminatory and deceptivepractices;

(3) activities within the wholesale and re-tail electric market, including mergers andacquisitions, that deny market access orsuppress competition;

(4) cross-subsidization that may occur be-tween regulated and nonregulated activities;and

(5) the role of State public utility commis-sions in regulating competition in the whole-sale and retail electric market.

(d) CONSULTATION.—In performing thestudy required by this section, the task forceshall consult with and solicit commentsfrom its advisory members, the States, rep-resentatives of the electric power industry,and the public.SEC. 235. GAO STUDY ON IMPLEMENTATION.

(a) STUDY.—The Comptroller General shallconduct a study of the success of the Federal

CONGRESSIONAL RECORD — SENATE S1447March 5, 2002Government and the States during the 18-month period following the effective date ofthis subtitle in—

(1) the prevention of anticompetitive prac-tices and other abuses by public utility hold-ing companies, including cross-subsidizationand other market power abuses; and

(2) the promotion of competition and effi-cient energy markets to the benefit of con-sumers.

(b) REPORT TO CONGRESS.—Not earlier than18 months after the effective date of this sub-title or later than 24 months after that effec-tive date, the Comptroller General shall sub-mit a report to the Congress on the results ofthe study conducted under subsection (a), in-cluding probable causes of its findings andrecommendations to the Congress and theStates for any necessary legislative changes.SEC. 236. EFFECTIVE DATE.

This subtitle shall take effect 18 monthsafter the date of enactment of this subtitle.SEC. 237. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriatedsuch funds as may be necessary to carry outthis subtitle.SEC. 238. CONFORMING AMENDMENTS TO THE

FEDERAL POWER ACT.(a) CONFLICT OF JURISDICTION.—Section 318

of the Federal Power Act (16 U.S.C. 825q) isrepealed.

(b) DEFINITIONS.—(1) Section 201(g) of the Federal Power Act

(16 U.S.C. 824(g)) is amended by striking‘‘1935’’ and inserting ‘‘2002’’.

(2) Section 214 of the Federal Power Act (16U.S.C. 824m) is amended by striking ‘‘1935’’and inserting ‘‘2002’’.Subtitle C—Amendments to the Public Utility

Regulatory Policies Act of 1978SEC. 241. REAL-TIME PRICING STANDARD.

(a) ADOPTION OF STANDARD.—Section 111(d)of the Public Utility Regulatory Policies Actof 1978 (16 U.S.C. 2621(d)) is amended by add-ing at the end the following:

‘‘(11) REAL-TIME PRICING.—(A) Each electricutility shall, at the request of an electricconsumer, provide electric service under areal-time rate schedule, under which the ratecharged by the electric utility varies by thehour (or smaller time interval) according tochanges in the electric utility’s wholesalepower cost. The real-time pricing serviceshall enable the electric consumer to man-age energy use and cost through real-timemetering and communications technology.

‘‘(B) For purposes of implementing thisparagraph, any reference contained in thissection to the date of enactment of the Pub-lic Utility Regulatory Policies Act of 1978shall be deemed to be a reference to the dateof enactment of this paragraph.

‘‘(C) 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 standard set out insubparagraph (A) not later than one yearafter the date of enactment of this para-graph.’’.

(b) SPECIAL RULES FOR REAL-TIME PRICINGSTANDARD.—Section 115 of the Public UtilityRegulatory Policies Act of 1978 (16 U.S.C.2625) is amended by adding at the end the fol-lowing:

‘‘(i) REAL-TIME PRICING.—In a State thatpermits third-party marketers to sell elec-tric energy to retail electric consumers, theelectric consumer shall be entitled to receivethe same real-time metering and commu-nication service as a direct retail electricconsumer of the electric utility.’’.SEC. 242. ADOPTION OF ADDITIONAL STAND-

ARDS.(a) ADOPTION OF STANDARDS.—Section

113(b) of the Public Utility Regulatory Poli-

cies Act of 1978 (16 U.S.C. 2623(b)) is amendedby adding at the end the following:

‘‘(6) DISTRIBUTED GENERATION.— Each elec-tric utility shall provide distributed genera-tion, combined heat and power, and districtheating and cooling systems competitive ac-cess to the local distribution grid and com-petitive pricing of service, and shall use sim-plified standard contracts for the inter-connection of generating facilities that havea power production capacity of 250 kilowattsor less.

‘‘(7) DISTRIBUTION INTERCONNECTIONS.—Noelectric utility may refuse to interconnect agenerating facility with the distribution fa-cilities of the electric utility if the owner oroperator of the generating facility complieswith technical standards adopted by theState regulatory authority and agrees to paythe costs established by such State regu-latory authority.

‘‘(8) MINIMUM FUEL AND TECHNOLOGY DIVER-SITY STANDARD.—Each electric utility shalldevelop a plan to minimize dependence onone fuel source and to ensure that the elec-tric energy it sells to consumers is generatedusing a diverse range of fuels and tech-nologies, including renewable technologies.

‘‘(9) FOSSIL FUEL EFFICIENCY.—Each elec-tric utility shall develop and implement aten-year plan to increase the efficiency of itsfossil fuel generation and shall monitor andreport to its State regulatory authority ex-cessive greenhouse gas emissions resultingfrom the inefficient operation of its fossilfuel generating plants.’’.

(b) TIME FOR ADOPTING STANDARDS.—Sec-tion 113 of the Public Utility RegulatoryPolicies Act of 1978 (16 U.S.C. 2623) is furtheramended by adding at the end the following:

‘‘(d) SPECIAL RULE.—For purposes of imple-menting paragraphs (6), (7), (8), and (9) ofsubsection (b), any reference contained inthis section to the date of enactment of thePublic Utility Regulatory Policies Act of1978 shall be deemed to be a reference to thedate of enactment of this subsection.’’.SEC. 243. TECHNICAL ASSISTANCE.

Section 132(c) of the Public Utility Regu-latory Policies Act of 1978 (16 U.S.C. 2642(c))is amended to read as follows:

‘‘(c) TECHNICAL ASSISTANCE FOR CERTAINRESPONSIBILITIES.—The Secretary may pro-vide such technical assistance as he deter-mines appropriate to assist State regulatoryauthorities and electric utilities in carryingout their responsibilities under section111(d)(11) and paragraphs (6), (7), (8), and (9)of section 113(b).’’.SEC. 244. COGENERATION AND SMALL POWER

PRODUCTION PURCHASE AND SALEREQUIREMENTS.

(a) TERMINATION OF MANDATORY PURCHASEAND SALE REQUIREMENTS.—Section 210 of thePublic Utility Regulatory Policies Act of1978 (16 U.S.C. 824a–3) is amended by addingat the end the following:

‘‘(m) TERMINATION OF MANDATORY PUR-CHASE AND SALE REQUIREMENTS.—

‘‘(1) IN GENERAL.—After the date of enact-ment of this subsection, no electric utilityshall be required to enter into a new con-tract or obligation to purchase or sell elec-tric energy under this section.

‘‘(2) NO EFFECT ON EXISTING RIGHTS ANDREMEDIES.—Nothing in this subsection af-fects the rights or remedies of any partywith respect to the purchase or sale of elec-tric energy or capacity from or to a facilityunder this section under any contract or ob-ligation to purchase or to sell electric en-ergy or capacity on the date of enactment ofthis subsection, including—

‘‘(A) the right to recover costs of pur-chasing such electric energy or capacity; and

‘‘(B) in States without competition for re-tail electric supply, the obligation of a util-

ity to provide, at just and reasonable ratesfor consumption by a qualifying small powerproduction facility or a qualifying cogenera-tion facility, backup, standby, and mainte-nance power.

‘‘(3) RECOVERY OF COSTS.—‘‘(A) REGULATION.—To ensure recovery by

an electric utility that purchases electric en-ergy or capacity from a qualifying facilitypursuant to any legally enforceable obliga-tion entered into or imposed under this sec-tion before the date of enactment of this sub-section, of all prudently incurred costs asso-ciated with the purchases, the Commissionshall issue and enforce such regulations asmay be required to ensure that the electricutility shall collect the prudently incurredcosts associated with such purchases.

‘‘(B) ENFORCEMENT.—A regulation undersubparagraph (A) shall be enforceable in ac-cordance with the provisions of law applica-ble to enforcement of regulations under theFederal Power Act (16 U.S.C. 791a et seq.).’’.

(b) ELIMINATION OF OWNERSHIP LIMITA-TIONS.—

(1) Section 3(17)(C) of the Federal PowerAct (16 U.S.C. 796(17)(C)) is amended to readas follows:

‘‘(C) ‘qualifying small power production fa-cility’ means a small power production facil-ity that the Commission determines, by rule,meets such requirements (including require-ments respecting minimum size, fuel use,and fuel efficiency) as the Commission may,by rule, prescribe.’’.

(2) Section 3(18)(B) of the Federal PowerAct (16 U.S.C. 796(18)(B)) is amended to readas follows:

‘‘(B) ‘qualifying cogeneration facility’means a cogeneration facility that the Com-mission determines, by rule, meets such re-quirements (including requirements respect-ing minimum size, fuel use, and fuel effi-ciency) as the Commission may, by rule, pre-scribe.’’.SEC. 245. NET METERING.

Title VI of the Public Utility RegulatoryPolicies Act of 1978 is amended by adding atthe end the following:‘‘SEC. 605. NET METERING FOR RENEWABLE EN-

ERGY AND FUEL CELLS.‘‘(a) DEFINITIONS.—For purposes of this sec-

tion:‘‘(1) The term ‘eligible on-site generating

facility’ means—‘‘(A) a facility on the site of a residential

electric consumer with a maximum gener-ating capacity of 10 kilowatts or less that isfueled by solar energy, wind energy, or fuelcells; or

‘‘(B) a facility on the site of a commercialelectric consumer with a maximum gener-ating capacity of 500 kilowatts or less that isfueled solely by a renewable energy resource,landfill gas, or a high efficiency system.

‘‘(2) The term ‘renewable energy resource’means solar, wind, biomass, or geothermalenergy.

‘‘(3) The term ‘high efficiency system’means fuel cells or combined heat and power.

‘‘(4) The term ‘net metering service’ meansservice to an electric consumer under whichelectric energy generated by that electricconsumer from an eligible on-site generatingfacility and delivered to the local distribu-tion facilities may be used to offset electricenergy provided by the electric utility to theelectric consumer during the applicable bill-ing period.

‘‘(b) REQUIREMENT TO PROVIDE NET METER-ING SERVICE.—Each electric utility shallmake available upon request net meteringservice to an electric consumer that theelectric utility serves.

‘‘(c) RATES AND CHARGES.—‘‘(1) IDENTICAL CHARGES.—An electric

utility—

CONGRESSIONAL RECORD — SENATES1448 March 5, 2002‘‘(A) shall charge the owner or operator of

an on-site generating facility rates andcharges that are identical to those thatwould be charged other electric consumers ofthe electric utility in the same rate class;and

‘‘(B) shall not charge the owner or operatorof an on-site generating facility any addi-tional standby, capacity, interconnection, orother rate or charge.

‘‘(2) MEASUREMENT.—An electric utilitythat sells electric energy to the owner or op-erator of an on-site generating facility shallmeasure the quantity of electric energy pro-duced by the on-site facility and the quan-tity of electric energy consumed by theowner or operator of an on-site generatingfacility during a billing period in accordancewith normal metering practices.

‘‘(3) ELECTRIC ENERGY SUPPLIED EXCEEDINGELECTRIC ENERGY GENERATED.—If the quan-tity of electric energy sold by the electricutility to an on-site generating facility ex-ceeds the quantity of electric energy sup-plied by the on-site generating facility to theelectric utility during the billing period, theelectric utility may bill the owner or oper-ator for the net quantity of electric energysold, in accordance with normal meteringpractices.

‘‘(4) ELECTRIC ENERGY GENERATED EXCEED-ING ELECTRIC ENERGY SUPPLIED.—If the quan-tity of electric energy supplied by the on-sitegenerating facility to the electric utility ex-ceeds the quantity of electric energy sold bythe electric utility to the on-site generatingfacility during the billing period—

‘‘(A) the electric utility may bill the owneror operator of the on-site generating facilityfor the appropriate charges for the billing pe-riod in accordance with paragraph (2); and

‘‘(B) the owner or operator of the on-sitegenerating facility shall be credited for theexcess kilowatt-hours generated during thebilling period, with the kilowatt-hour creditappearing on the bill for the following billingperiod.

‘‘(d) SAFETY AND PERFORMANCE STAND-ARDS.—

‘‘(1) An eligible on-site generating facilityand net metering system used by an electricconsumer shall meet all applicable safety,performance, reliability, and interconnec-tion standards established by the NationalElectrical Code, the Institute of Electricaland Electronics Engineers, and UnderwritersLaboratories.

‘‘(2) The Commission, after consultationwith State regulatory authorities and non-regulated electric utilities and after noticeand opportunity for comment, may adopt, byrule, additional control and testing require-ments for on-site generating facilities andnet metering systems that the Commissiondetermines are necessary to protect publicsafety and system reliability.

‘‘(e) APPLICATION.—This section applies toeach electric utility during any calendaryear in which the total sales of electric en-ergy by such utility for purposes other thanresale exceeded 1,000,000,000 kilowatt-hoursduring the preceding calendar year.’’.

Subtitle D—Consumer ProtectionsSEC. 251. INFORMATION DISCLOSURE.

(a) OFFERS AND SOLICITATIONS.—The Fed-eral Trade Commission shall issue rules re-quiring each electric utility that makes anoffer to sell electric energy, or solicits elec-tric consumers to purchase electric energyto provide the electric consumer a statementcontaining the following information—

(1) the nature of the service being offered,including information about interruptibilityof service;

(2) the price of the electric energy, includ-ing a description of any variable charges;

(3) a description of all other charges associ-ated with the service being offered, including

access charges, exit charges, back-up servicecharges, stranded cost recovery charges, andcustomer service charges; and

(4) information the Federal Trade Commis-sion determines is technologically and eco-nomically feasible to provide, is of assist-ance to electric consumers in making pur-chasing decisions, and concerns—

(A) the product or its price;(B) the share of electric energy that is gen-

erated by each fuel type; and(C) the environmental emissions produced

in generating the electric energy.(b) PERIODIC BILLINGS.—The Federal Trade

Commission shall issue rules requiring anyelectric utility that sells electric energy totransmit to each of its electric consumers, inaddition to the information transmitted pur-suant to section 115(f) of the Public UtilityRegulatory Policies Act of 1978 (16 U.S.C.2625(f)), a clear and concise statement con-taining the information described in sub-section (a)(4) for each billing period (unlesssuch information is not reasonably ascer-tainable by the electric utility).SEC. 252. CONSUMER PRIVACY.

(a) PROHIBITION.—The Federal Trade Com-mission shall issue rules prohibiting anyelectric utility that obtains consumer infor-mation in connection with the sale or deliv-ery of electric energy to an electric con-sumer from using, disclosing, or permittingaccess to such information unless the elec-tric consumer to whom such information re-lates provides prior written approval.

(b) PERMITTED USE.—The rules issuedunder this section shall not prohibit anyelectric utility from using, disclosing, orpermitting access to consumer informationreferred to in subsection (a) for any of thefollowing purposes:

(1) To facilitate an electric consumer’schange in selection of an electric utilityunder procedures approved by the State orState regulatory authority.

(2) To initiate, render, bill, or collect forthe sale or delivery of electric energy toelectric consumers or for related services.

(3) To protect the rights or property of theperson obtaining such information.

(4) To protect retail electric consumersfrom fraud, abuse, and unlawful subscriptionin the sale or delivery of electric energy tosuch consumers.

(5) For law enforcement purposes.(6) For purposes of compliance with any

Federal, State, or local law or regulation au-thorizing disclosure of information to a Fed-eral, State, or local agency.

(c) AGGREGATE CONSUMER INFORMATION.—The rules issued under this subsection maypermit a person to use, disclose, and permitaccess to aggregate consumer informationand may require an electric utility to makesuch information available to other electricutilities upon request and payment of a rea-sonable fee.

(d) DEFINITIONS.—As used in this section:(1) The term ‘‘aggregate consumer infor-

mation’’ means collective data that relatesto a group or category of retail electric con-sumers, from which individual consumeridentities and characteristics have been re-moved.

(2) The term ‘‘consumer information’’means information that relates to the quan-tity, technical configuration, type, destina-tion, or amount of use of electric energy de-livered to any retail electric consumer.SEC. 253. UNFAIR TRADE PRACTICES.

(a) SLAMMING.—The Federal Trade Com-mission shall issue rules prohibiting thechange of selection of an electric utility ex-cept with the informed consent of the elec-tric consumer.

(b) CRAMMING.—The Federal Trade Com-mission shall issue rules prohibiting the sale

of goods and services to an electric consumerunless expressly authorized by law or theelectric consumer.SEC. 254. APPLICABLE PROCEDURES.

The Federal Trade Commission shall pro-ceed in accordance with section 553 of title 5,United States Code, when prescribing a rulerequired by this subtitle.SEC. 255. FEDERAL TRADE COMMISSION EN-

FORCEMENT.Violation of a rule issued under this sub-

title shall be treated as a violation of a ruleunder section 18 of the Federal Trade Com-mission Act (15 U.S.C. 57a) respecting unfairor deceptive acts or practices. All functionsand powers of the Federal Trade Commissionunder such Act are available to the FederalTrade Commission to enforce compliancewith this subtitle notwithstanding any juris-dictional limits in such Act.SEC. 256. STATE AUTHORITY.

Nothing in this subtitle shall be construedto preclude a State or State regulatory au-thority from prescribing and enforcing addi-tional laws, rules, or procedures regardingthe practices which are the subject of thissection, so long as such laws, rules, or proce-dures are not inconsistent with the provi-sions of this section or with any rule pre-scribed by the Federal Trade Commissionpursuant to it.SEC. 257. APPLICATION OF SUBTITLE.

The provisions of this subtitle apply toeach electric utility if the total sales of elec-tric energy by such utility for purposes otherthan resale exceed 500 million kilowatt-hours per calendar year. The provisions ofthis subtitle do not apply to the operationsof an electric utility to the extent that suchoperations relate to sales of electric energyfor purposes of resale.SEC. 258. DEFINITIONS.

As used in this subtitle:(1) The term ‘‘aggregate consumer infor-

mation’’ means collective data that relatesto a group or category of electric consumers,from which individual consumer identitiesand identifying characteristics have been re-moved.

(2) The term ‘‘consumer information’’means information that relates to the quan-tity, technical configuration, type, destina-tion, or amount of use of electric energy de-livered to an electric consumer.

(3) The terms ‘‘electric consumer’’, ‘‘elec-tric utility’’, and ‘‘State regulatory author-ity’’ have the meanings given such terms insection 3 of the Public Utility RegulatoryPolicies Act of 1978 (16 U.S.C. 2602).

Subtitle E—Renewable Energy and RuralConstruction Grants

SEC. 261. RENEWABLE ENERGY PRODUCTION IN-CENTIVE.

(a) INCENTIVE PAYMENTS.—Section 1212(a)of the Energy Policy Act of 1992 (42 U.S.C.13317(a)) is amended by striking ‘‘and whichsatisfies’’ and all that follows through ‘‘Sec-retary shall establish.’’ and inserting the fol-lowing:

‘‘. The Secretary shall establish other pro-cedures necessary for efficient administra-tion of the program. The Secretary shall notestablish any criteria or procedures thathave the effect of assigning to proposals ahigher or lower priority for eligibility or al-location of appropriated funds on the basis ofthe energy source proposed.’’.

(b) QUALIFIED RENEWABLE ENERGY FACIL-ITY.—Section 1212(b) of the Energy PolicyAct of 1992 (42 U.S.C. 13317(b)) is amended—

(1) by striking ‘‘a State or any political’’and all that follows through ‘‘nonprofit elec-trical cooperative’’ and inserting the fol-lowing: ‘‘an electricity-generating coopera-tive exempt from taxation under section501(c)(12) or section 1381(a)(2)(C) of the Inter-nal Revenue Code of 1986, a public utility de-scribed in section 115 of such Code, a State,

CONGRESSIONAL RECORD — SENATE S1449March 5, 2002Commonwealth, territory, or possession ofthe United States or the District of Colum-bia, or a political subdivision thereof, or anIndian tribal government or subdivisionthereof,’’; and

(2) by inserting ‘‘landfill gas, incrementalhydropower, ocean’’ after ‘‘wind, biomass,’’.

(c) ELIGIBILITY WINDOW.—Section 1212(c) ofthe Energy Policy Act of 1992 (42 U.S.C.13317(c)) is amended by striking ‘‘during the10-fiscal year period beginning with the firstfull fiscal year occurring after the enact-ment of this section’’ and inserting ‘‘beforeOctober 1, 2013’’.

(d) PAYMENT PERIOD.—Section 1212(d) ofthe Energy Policy Act of 1992 (42 U.S.C.13317(d)) is amended by inserting ‘‘or inwhich the Secretary finds that all necessaryFederal and State authorizations have beenobtained to begin construction of the facil-ity’’ after ‘‘eligible for such payments’’.

(e) AMOUNT OF PAYMENT.—Section 1212(e)(1)of the Energy Policy Act of 1992 (42 U.S.C.13317(e)(1)) is amended by inserting ‘‘landfillgas, incremental hydropower, ocean’’ after‘‘wind, biomass,’’.

(f) SUNSET.—Section 1212(f) of the EnergyPolicy Act of 1992 (42 U.S.C. 13317(f)) isamended by striking ‘‘the expiration of’’ andall that follows through ‘‘of this section’’and inserting ‘‘September 30, 2023’’.

(g) INCREMENTAL HYDROPOWER; AUTHORIZA-TION OF APPROPRIATIONS.—Section 1212 of theEnergy Policy Act of 1992 (42 U.S.C. 13317) isfurther amended by striking subsection (g)and inserting the following:

‘‘(g) INCREMENTAL HYDROPOWER.—‘‘(1) PROGRAMS.—Subject to subsection

(h)(2), if an incremental hydropower programmeets the requirements of this section, asdetermined by the Secretary, the incre-mental hydropower program shall be eligibleto receive incentive payments under thissection.

‘‘(2) DEFINITION OF INCREMENTAL HYDRO-POWER.—In this subsection, the term ‘incre-mental hydropower’ means additional gener-ating capacity achieved from increased effi-ciency or additions of new capacity at a hy-droelectric facility in existence on the dateof enactment of this paragraph.

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—‘‘(1) IN GENERAL.—Subject to paragraph (2),

there are authorized to be appropriated suchsums as may be necessary to carry out thissection for fiscal years 2003 through 2023.

‘‘(2) LIMITATION ON FUNDS USED FOR INCRE-MENTAL HYDROPOWER PROGRAMS.—Not morethan 30 percent of the amounts made avail-able under paragraph (1) shall be used tocarry out programs described in subsection(g)(2).

‘‘(3) AVAILABILITY OF FUNDS.—Funds madeavailable under paragraph (1) shall remainavailable until expended.’’.SEC. 262. ASSESSMENT OF RENEWABLE ENERGY

RESOURCES.(a) RESOURCE ASSESSMENT.—Not later than

3 months after the date of enactment of thistitle, and each year thereafter, the Secretaryof Energy shall review the available assess-ments of renewable energy resources avail-able within the United States, includingsolar, wind, biomass, ocean, geothermal, andhydroelectric energy resources, and under-take new assessments as necessary, takinginto account changes in market conditions,available technologies and other relevantfactors.

(b) CONTENTS OF REPORTS.—Not later thanone year after the date of enactment of thistitle, and each year thereafter, the Secretaryshall publish a report based on the assess-ment under subsection (a). The report shallcontain—

(1) a detailed inventory describing theavailable amount and characteristics of therenewable energy resources, and

(2) such other information as the Secretaryof Energy believes would be useful in devel-oping such renewable energy resources, in-cluding descriptions of surrounding terrain,population and load centers, nearby energyinfrastructure, location of energy and waterresources, and available estimates of thecosts needed to develop each resource.SEC. 263. FEDERAL PURCHASE REQUIREMENT.

(a) REQUIREMENT.—The President shall en-sure that, of the total amount of electric en-ergy the federal government consumes dur-ing any fiscal year—

(1) not less than 3 percent in fiscal years2003 through 2004,

(2) not less than 5 percent in fiscal years2005 through 2009, and

(3) not less than 7.5 percent in fiscal year2010 and each fiscal year thereafter—shall be renewable energy. The Presidentshall encourage the use of innovative pur-chasing practices, including aggregation andthe use of renewable energy derivatives, byfederal agencies.

(b) DEFINITION.—For purposes of this sec-tion, the term ‘‘renewable energy’’ meanselectric energy generated from solar, wind,biomass, geothermal, fuel cells, or additionalhydroelectric generation capacity achievedfrom increased efficiency or additions of newcapacity at an existing hydroelectric dam.

(c) TRIBAL POWER GENERATION.—To themaximum extent practicable, the Presidentshall ensure that not less than one-tenth ofthe amount specified in subsection (a) shallbe renewable energy that is generated by anIndian tribe or by a corporation, partnership,or business association which is wholly ormajority owned, directly or indirectly, by anIndian tribe. For purposes of this subsection,the term ‘‘Indian tribe’’ means any Indiantribe, band, nation, or other organized groupor community, including any Alaska Nativevillage or regional or village corporation asdefined in or established pursuant to theAlaska 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.SEC. 264. RURAL CONSTRUCTION GRANTS.

Section 313 of the Rural Electrification Actof 1936 (7 U.S.C. 940c) is amended by addingafter subsection (b) the following:

‘‘(c) RURAL AND REMOTE COMMUNITIESELECTRIFICATION GRANTS.—The Secretary ofAgriculture, in consultation with the Sec-retary of Energy and the Secretary of the In-terior, may provide grants to eligible bor-rowers under this Act for the purpose of in-creasing energy efficiency, siting or upgrad-ing transmission and distribution lines, orproviding or modernizing electric facilitiesfor—

‘‘(1) a unit of local government of a Stateor territory; or

‘‘(2) an Indian tribe or Tribal College orUniversity as defined in section 316(b)(3) ofthe Higher Education Act (20 U.S.C.1059c(b)(3)).

‘‘(d) GRANT CRITERIA.—The Secretary shallmake grants based on a determination ofcost-effectiveness and most effective use ofthe funds to achieve the stated purposes ofthis section.

‘‘(e) PREFERENCE.—In making grants underthis section, the Secretary shall give a pref-erence to renewable energy facilities.

‘‘(f) DEFINITION.—For purposes of this sec-tion, 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 services

provided by the United States to Indians be-cause of their status as Indians;

‘‘(g) AUTHORIZATION.—For the purpose ofcarrying out subsection (c), there are author-ized to be appropriated to the Secretary$20,000,000 for each of the seven fiscal yearsfollowing the date of enactment of this sub-section.’’.SEC. 265. RENEWABLE PORTFOLIO STANDARD.

Title VI of the Public Utility RegulatoryPolicies Act of 1978 is further amended byadding at the end the following:‘‘SEC. 606. FEDERAL RENEWABLE PORTFOLIO

STANDARD.‘‘(a) MINIMUM RENEWABLE GENERATION RE-

QUIREMENT.—For each calendar year begin-ning with 2003, each retail electric suppliershall submit to the Secretary renewable en-ergy credits in an amount equal to the re-quired annual percentage, specified in sub-section (b), of the total electric energy soldby the retail electric supplier to electric con-sumers in the calendar year. The retail elec-tric supplier shall make this submission be-fore April 1 of the following calendar year.

‘‘(b) REQUIRED ANNUAL PERCENTAGE.—‘‘(1) For calendar years 2003 and 2004, the

required annual percentage shall be deter-mined by the Secretary in an amount lessthan the amount in paragraph (2);

‘‘(2) For calendar year 2005 the required an-nual percentage shall be 2.5 percent of the re-tail electric supplier’s base amount; and

‘‘(3) For each calendar year from 2006through 2020, the required annual percentageof the retail electric supplier’s base amountshall be .5 percent greater than the requiredannual percentage for the calendar year im-mediately preceding.

‘‘(c) SUBMISSION OF CREDITS.—(1) A retailelectric supplier may satisfy the require-ments of subsection (a) through the submis-sion of—

‘‘(A) renewable energy credits issued undersubsection (d) for renewable energy gen-erated by the retail electric supplier in thecalendar year for which credits are beingsubmitted or any of the two previous cal-endar years;

‘‘(B) renewable energy credits obtained bypurchase or exchange under subsection (e);

‘‘(C) renewable energy credits borrowedagainst future years under subsection (f); or

‘‘(D) any combination of credits under sub-paragraphs (A), (B), and (C).

‘‘(2) A credit may be counted toward com-pliance with subsection (a) only once.

‘‘(d) ISSUANCE OF CREDITS.—(1) The Sec-retary shall establish, not later than oneyear after the date of enactment of this sec-tion, a program to issue, monitor the sale orexchange of, and track renewable energycredits.

‘‘(2) Under the program, an entity thatgenerates electric energy through the use ofa renewable energy resource may apply tothe Secretary for the issuance of renewableenergy credits. The application shallindicate—

‘‘(A) the type of renewable energy resourceused to produce the electricity,

‘‘(B) the location where the electric energywas produced, and

‘‘(C) any other information the Secretarydetermines appropriate.

‘‘(3)(A) Except as provided in paragraphs(B) and (C), the Secretary shall issue to anentity one renewable energy credit for eachkilowatt-hour of electric energy the entitygenerates in calendar year 2002 and any suc-ceeding year through the use of a renewableenergy resource at an eligible facility.

‘‘(B) For incremental hydropower the cred-its shall be calculated based on a normalizedannual capacity factor for each facility, andnot actual generation. The calculation of thecredits for incremental hydropower shall not

CONGRESSIONAL RECORD — SENATES1450 March 5, 2002be based on any operational changes at thehydroelectric facility not directly associatedwith the efficiency improvements or capac-ity additions.

‘‘(C) The Secretary shall issue two renew-able energy credits for each kilowatt-hour ofelectric energy generated in calendar year2002 and any succeeding year through the useof a renewable energy resource at an eligiblefacility located on Indian land. For purposesof this paragraph, renewable energy gen-erated by biomass cofired with other fuels iseligible for two credits only if the biomasswas grown on the land eligible under thisparagraph.

‘‘(D) To be eligible for a renewable energycredit, the unit of electric energy generatedthrough the use of a renewable energy re-source may be sold or may be used by thegenerator. If both a renewable energy re-source and a non-renewable energy resourceare used to generate the electric energy, theSecretary shall issue credits based on theproportion of the renewable energy resourceused. The Secretary shall identify renewableenergy credits by type and date of genera-tion.

‘‘(4) In order to receive a renewable energycredit, the recipient of a renewable energycredit shall pay a fee, calculated by the Sec-retary, in an amount that is equal to the ad-ministrative costs of issuing, recording,monitoring the sale or exchange of, andtracking the credit. The Secretary shall re-tain the fee and use it to pay these adminis-trative costs.

‘‘(5) When a generator sells electric energygenerated through the use of a renewable en-ergy resource to a retail electric supplierunder a contract subject to section 210 ofthis Act, the retail electric supplier is treat-ed as the generator of the electric energy forthe purposes of this section for the durationof the contract.

‘‘(e) CREDIT TRADING.—A renewable energycredit may be sold or exchanged by the enti-ty to whom issued or by any other entitywho acquires the credit. A renewable energycredit for any year that is not used to satisfythe minimum renewable generation require-ment of subsection (a) for that year may becarried forward for use in another year.

‘‘(f) CREDIT BORROWING.—At any time be-fore the end of calendar year 2003, a retailelectric supplier that has reason to believethat it will not have sufficient renewable en-ergy credits to comply with subsection (a)may—

‘‘(1) submit a plan to the Secretary dem-onstrating that the retail electric supplierwill earn sufficient credits within the next 3calendar years which, when taken into ac-count, will enable the retail electric supplierto meet the requirements of subsection (a)for calendar year 2003 and the calendar yearinvolved; and

(2) upon the approval of the plan by theSecretary, apply credits that the plan dem-onstrates will be earned within the next 3calendar years to meet the requirements ofsubsection (a) for each calendar year in-volved.

‘‘(g) ENFORCEMENT.—The Secretary maybring an action in the appropriate UnitedStates district court to impose a civil pen-alty on a retail electric supplier that doesnot comply with subsection (a). A retail elec-tric supplier who does not submit the re-quired number of renewable energy creditsunder subsection (a) is subject to a civil pen-alty of not more than 3 cents each for the re-newable energy credits not submitted.

‘‘(h) INFORMATION COLLECTION.—The Sec-retary may collect the information nec-essary to verify and audit—

‘‘(1) the annual electric energy generationand renewable energy generation of any enti-ty applying for renewable energy creditsunder this section,

‘‘(2) the validity of renewable energy cred-its submitted by a retail electric supplier tothe Secretary, and

‘‘(3) the quantity of electricity sales of allretail electric suppliers.

‘‘(i) ENVIRONMENTAL SAVINGS CLAUSE.—In-cremental hydropower shall be subject to allapplicable environmental laws and licensingand regulatory requirements.

‘‘(j) STATE SAVINGS CLAUSE.—This sectiondoes not preclude a State from requiring ad-ditional renewable energy generation in thatState.

‘‘(k) DEFINITIONS.—For purposes of thissection—

‘‘(1) The term ‘eligible facility’ means—‘‘(A) a facility for the generation of elec-

tric energy from a renewable energy resourcethat is placed in service on or after January1, 2002; or

‘‘(B) a repowering or cofiring incrementthat is placed in service on or after January1, 2002 at a facility for the generation of elec-tric energy from a renewable energy resourcethat was placed in service before January 1,2002.An eligible facility does not have to be inter-connected to the transmission or distribu-tion system facilities of an electric utility.

‘‘(2) The term ‘generation offset’ means re-duced electricity usage metered at a sitewhere a customer consumes electricity froma renewable energy technology.

‘‘(3) The term ‘incremental hydropower’means additional generation capacityachieved from increased efficiency or addi-tions of capacity after January 1, 2002 at ahydroelectric dam that was placed in servicebefore January 1, 2002.

‘‘(4) The term ‘Indian land’ means—‘‘(A) any land within the limits of any In-

dian reservation, pueblo or rancheria,‘‘(B) any land not within the limits of any

Indian reservation, pueblo or rancheria titleto which was on the date of enactment ofthis paragraph either held by the UnitedStates for the benefit of any Indian tribe orindividual or held by any Indian tribe or in-dividual subject to restriction by the UnitedStates against alienation,

‘‘(C) any dependent Indian community, and‘‘(D) any land conveyed to any Alaska Na-

tive corporation under the Alaska NativeClaims Settlement Act.

‘‘(5) 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.

‘‘(6) The term ‘renewable energy’ meanselectric energy generated by a renewable en-ergy resource.

‘‘(7) The term ‘renewable energy resource’means solar, wind, biomass, ocean, or geo-thermal energy, a generation offset, or incre-mental hydropower facility.

‘‘(8) The term ‘repowering or cofiring in-crement’ means the additional generationfrom a modification that is placed in serviceon or after January 1, 2002 to expand elec-tricity production at a facility used to gen-erate electric energy from a renewable en-ergy resource or to cofire biomass that wasplaced in service before January 1, 2002.

‘‘(9) The term ‘retail electric supplier’means a person, State agency, or Federalagency that sells electric energy to electricconsumers and sold not less than 500,000,000kilowatt-hours of electric energy to electricconsumers for purposes other than resaleduring the preceding calendar year.

‘‘(10) The term ‘retail electric supplier’sbase amount’ means the total amount of

electric energy sold by the retail electricsupplier to electric customers during themost recent calendar year for which infor-mation is available, excluding electric en-ergy generated by a renewable energy re-source, landfill gas, or a hydroelectric facil-ity.

‘‘(l) SUNSET.—Subsection (a) of this sectionexpires December 31, 2020.’’.SEC. 266. RENEWABLE ENERGY ON FEDERAL

LAND.(a) COST-SHARE DEMONSTRATION PRO-

GRAM.—Within 12 months after the date ofenactment of this section, the Secretaries ofthe Interior, Agriculture, and Energy shalldevelop guidelines for a cost-share dem-onstration program for the development ofwind and solar energy facilities on Federalland.

(b) DEFINITION OF FEDERAL LAND.—As usedin this section, the term ‘‘Federal land’’means land owned by the United States thatis subject to the operation of the mineralleasing laws; and is either—

(1) public land as defined in section 103(e)of the Federal Land Policy and ManagementAct of 1976 (42 U.S.C. 1702(e)), or

(2) a unit of the National Forest System asthat term is used in section 11(a) of the For-est and Rangeland Renewable ResourcesPlanning Act of 1974 (16 U.S.C. 1609(a)).

(c) RIGHTS-OF-WAYS.—The demonstrationprogram shall provide for the issuance ofrights-of-way pursuant to the provisions oftitle V of the Federal Land Policy and Man-agement Act of 1976 (43 U.S.C. 1761 et seq.) bythe Secretary of the Interior with respect toFederal land under the jurisdiction of theDepartment of the Interior, and by the Sec-retary of Agriculture with respect to federallands under the jurisdiction of the Depart-ment of Agriculture.

(d) AVAILABLE SITES.—For purposes of thisdemonstration program, the issuance ofrights-of-way shall be limited to areas—

(1) of high energy potential for wind orsolar development;

(2) that have been identified by the wind orsolar energy industry, through a process ofnomination, application, or otherwise, asbeing of particular interest to one or both in-dustries;

(3) that are not located within roadlessareas;

(4) where operation of wind or solar facili-ties would be compatible with the scenic,recreational, environmental, cultural, or his-toric values of the Federal land, and wouldnot require the construction of new roads forthe siting of lines or other transmission fa-cilities; and

(5) where issuance of the right-of-way isconsistent with the land and resource man-agement plans of the relevant land manage-ment agencies.

(e) COST-SHARE PAYMENTS BY DOE.—TheSecretary of Energy, in cooperation with theSecretary of the Interior with respect toFederal land under the jurisdiction of theDepartment of the Interior, and the Sec-retary of Agriculture with respect to Federalland under the jurisdiction of the Depart-ment of Agriculture, shall determine if theportion of a project on federal land is eligiblefor financial assistance pursuant to this sec-tion. Only those projects that are consistentwith the requirements of this section andfurther the purposes of this section shall beeligible. In the event a project is selected forfinancial assistance, the Secretary of Energyshall provide no more than 15 percent of thecosts of the project on the federal land, andthe remainder of the costs shall be paid bynon-Federal sources.

(f) REVISION OF LAND USE PLANS.—The Sec-retary of the Interior shall consider develop-ment of wind and solar energy, as appro-priate, in revisions of land use plans under

CONGRESSIONAL RECORD — SENATE S1451March 5, 2002section 202 of the Federal Land Policy andManagement Act of 1976 (42 U.S.C. 1712); andthe Secretary of Agriculture shall considerdevelopment of wind and solar energy, as ap-propriate, in revisions of land and resourcemanagement plans under section 5 of theForest an Rangeland Renewable ResourcesPlanning Act of 1974 (16 U.S.C. 1604). Nothingin this subsection shall preclude the issuanceof a right-of-way for the development of awind or solar energy project prior to the re-vision of a land use plan by the appropriateland management agency.

(g) REPORT TO CONGRESS.—Within 24months after the date of enactment of thissection, the Secretary of the Interior shalldevelop and report to Congress recommenda-tions on any statutory or regulatory changesthe Secretary believes would assist in the de-velopment of renewable energy on Federalland. The report shall include—

(1) a five-year plan developed by the Sec-retary of the Interior, in cooperation withthe Secretary of Agriculture, for encour-aging the development of wind and solar en-ergy on Federal land in an environmentallysound manner; and

(2) an analysis of—(A) whether the use of rights-of-ways is the

best means of authorizing use of Federalland for the development of wind and solarenergy, or whether such resources could bebetter developed through a leasing system,or other method;

(B) the desirability of grants, loans, taxcredits or other provisions to promote windand solar energy development on Federalland; and

(C) any problems, including environmentalconcerns, which the Secretary of the Interioror the Secretary of Agriculture have encoun-tered in managing wind or solar energyprojects on Federal land, or believe are like-ly to arise in relation to the development ofwind or solar energy on Federal land;

(3) a list, developed in consultation withthe Secretaries of Energy and Defense, oflands under the jurisdiction of the Depart-ments of Energy and Defense that would besuitable for development for wind or solarenergy, and recommended statutory and reg-ulatory mechanisms for such development;and

(4) an analysis, developed in consultationwith the Secretaries of Energy and Com-merce, of the potential for development ofwind, solar, and ocean energy on the OuterContinental Shelf, along with recommendedstatutory and regulatory mechanisms forsuch development.

TITLE III—HYDROELECTRICRELICENSING

SEC. 301. ALTERNATIVE MANDATORY CONDI-TIONS AND FISHWAYS.

(a) ALTERNATIVE MANDATORY CONDITIONS.—Section 4 of the Federal Power Act (16 U.S.C.797) is amended by adding at the end the fol-lowing:

‘‘(h)(1) Whenever any person applies for alicense for any project works within any res-ervation of the United States, and the Sec-retary of the department under whose super-vision such reservation falls deems a condi-tion to such license to be necessary underthe first proviso of subsection (e), the licenseapplicant or any other party to the licensingproceeding may propose an alternative con-dition.

‘‘(2) Notwithstanding the first proviso ofsubsection (e), the Secretary of the depart-ment under whose supervision the reserva-tion falls shall accept the proposed alter-native condition referred to in paragraph (1),and the Commission shall include in the li-cense such alternative condition, if the Sec-retary of the appropriate department deter-mines, based on substantial evidence pro-

vided by the party proposing such alter-native condition, that the alternativecondition—

‘‘(A) provides no less protection for the res-ervation than provided by the conditiondeemed necessary by the Secretary; and

‘‘(B) will either—‘‘(i) cost less to implement, or‘‘(ii) result in improved operation of the

project works for electricity production,as compared to the condition deemed nec-essary by the Secretary.

‘‘(3) Within 1 year after the enactment ofthis subsection, each Secretary concernedshall, by rule, establish a process to expedi-tiously resolve conflicts arising under thissubsection.’’.

(b) ALTERNATIVE FISHWAYS.—Section 18 ofthe Federal Power Act (16 U.S.C. 811) isamended by—

(1) inserting ‘‘(a)’’ before the first sentence;and

(2) adding at the end the following:‘‘(b)(1) Whenever the Commission shall re-

quire a licensee to construct, maintain, oroperate a fishway prescribed by the Sec-retary of the Interior or the Secretary ofCommerce under this section, the licensee orany other party to the proceeding may pro-pose an alternative to such prescription toconstruct, maintain, or operate a fishway.

‘‘(2) Notwithstanding subsection (a), theSecretary of the Interior or the Secretary ofCommerce, as appropriate, shall accept andprescribe, and the Commission shall require,the proposed alternative referred to in para-graph (1), if the Secretary of the appropriatedepartment determines, based on substantialevidence provided by the party proposingsuch alternative, that the alternative—

‘‘(A) will be no less effective than thefishway initially prescribed by the Sec-retary, and

‘‘(B) will either—‘‘(i) cost less to implement, or‘‘(ii) result in improved operation of the

project works for electricity production,as compared to the fishway initially pre-scribed by the Secretary.

‘‘(3) Within 1 year after the enactment ofthis subsection, the Secretary of the Interiorand the Secretary of Commerce shall each,by rule, establish a process to expeditiouslyresolve conflicts arising under this sub-section.’’.SEC. 302. CHARGES FOR TRIBAL LANDS.

Section 10(e)(1) of the Federal Power Act(16 U.S.C. 803(e)(1) is amended by insertingafter the second proviso the following: ‘‘Pro-vided further, that the Commission shall notissue a new or original license for projectsinvolving tribal lands embraced within In-dian reservations until annual charges re-quired under this section have been fixed.’’SEC. 303. DISPOSITION OF HYDROELECTRIC

CHARGES.Section 17 of the Federal Power Act (16

U.S.C. 810) is amended by striking ‘‘to be ex-pended under the direction of the Secretaryof the Army in the maintenance and oper-ation of dams and other navigation struc-tures owned by the United States or in theconstruction, maintenance, or operation ofheadwater or other improvements of navi-gable waters of the United States.’’ and in-serting the following: ‘‘to be expended in thefollowing manner on an annual basis: (A)fifty-percent of the funds shall be expendedby the Secretary of the Interior pursuant toa grant program to be established by theSecretary to support collaborative watershedrestoration and education activities in-tended to promote the recovery of candidate,threatened, and endangered species underthe Endangered Species Act of 1973; and (B)fifty-percent of the funds shall be expendedby the Secretary of Agriculture, acting

through the Chief of the Forest Service, forthe Youth Conservation Corps program.’’.SEC. 304. ANNUAL LICENSES.

Section 15(a) of the Federal Power Act (16U.S.C. 808(a)) is amended by adding at theend the following:

‘‘(4) Prior to issuing a fourth and subse-quent annual license under paragraph (1), theCommission shall first consult with the Sec-retary of the Interior and the Secretary ofCommerce, and if the project is within anyreservation, with the Secretary under whosesupervision such reservation falls.

‘‘(5) Prior to issuing a fourth and subse-quent annual license under paragraph (1), theCommission shall publish a written state-ment setting forth the reasons why the an-nual license is needed, and describing the re-sults of consultation with the Secretary ofthe Interior, the Secretary of Commerce, andthe Secretary under whose supervision thereservation falls. Such explanation shall alsocontain the best judgment of the Commis-sion as to whether the Commission antici-pates issuing an additional annual license.

‘‘(6) At least 60 days prior to expiration ofthe seventh and subsequent annual licensesissued under paragraph (1), the Commissionshall submit to Congress the written state-ment required in paragraph (5).’’.SEC. 305. ENFORCEMENT.

(a) MONITORING AND INVESTIGATIONS OFMANDATORY CONDITIONS AND FISHWAY PRE-SCRIPTIONS.—The first sentence of section31(a) of the Federal Power Act (16 U.S.C.823b(a)) is amended to read as follows:‘‘The Commission shall monitor and inves-tigate compliance with each license and per-mit issued under this part, each conditionimposed under section 4(e) or 4(h), eachfishway prescription imposed under section18, and each exemption granted from any re-quirement of this part.’’

(b) COMPLIANCE ORDERS.—The third sen-tence of section 31(a) of the Federal PowerAct (16 U.S.C. 823(a)) is amended to read asfollows:‘‘After notice and opportunity for publichearing, the Commission may issue such or-ders as necessary to require compliance withthe terms and conditions of licenses and per-mits issued under this part, with conditionsimposed under section 4(e) or 4(h), withfishway prescriptions imposed under section18, and with the terms and conditions of ex-emptions granted from any requirement ofthis part.’’SEC. 306. ESTABLISHMENT OF HYDROELECTRIC

RELICENSING PROCEDURES.(a) JOINT PROCEDURES OF THE COMMISSION

AND RESOURCE AGENCIES.—(1) Within 18 months after the date of en-

actment of this section, the Commission, theSecretary of the Interior, the Secretary ofCommerce, and the Secretary of Agriculture,shall, after consultation with the interestedstates and public review and comment, issuecoordinated regulations governing theissuance of a license under section 15 of theFederal Power Act (16 U.S.C. 808).

(2) Such regulations shall provide for—(A) the participation of the Commission in

the pre-application environmental scopingprocess conducted by the resource agenciespursuant to section 15(b) of the FederalPower Act (16 U.S.C. 808(b)), sufficient toallow the Commission and the resource agen-cies to coordinate environmental reviewsand other regulatory procedures of the Com-mission and the resource agencies underPart I of the Federal Power Act, and underthe National Environmental Policy Act of1969 (42 U.S.C. 4321 et seq.).

(B) issuance by the resource agencies ofdraft and final mandatory conditions undersection 4(e) of the Federal Power Act (16U.S.C. 797(e)), and draft and final fishway

CONGRESSIONAL RECORD — SENATES1452 March 5, 2002prescriptions under section 18 of the FederalPower Act (16 U.S.C. 811);

(C) to the maximum extent possible, iden-tification by the Commission staff in thedraft analysis of the license application con-ducted under the National EnvironmentalPolicy Act, of all license articles and licenseconditions the Commission is likely to in-clude in the license;

(D) coordination by the Commission andthe resource agencies of analysis under theNational Environmental Policy Act for finallicense articles and conditions recommendedby Commission staff, and the final manda-tory conditions and fishway prescriptions ofthe resource agencies;

(E) procedures for ensuring coordinationand sharing, to the maximum extent pos-sible, of information, studies, data and anal-ysis by the Commission and the resourceagencies to reduce the need for duplicativestudies and analysis by license applicantsand other parties to the license proceeding;and

(F) procedures for ensuring resolution atan early stage of the process of the scope andtype of reasonable and necessary informa-tion, studies, data, and analysis to be pro-vided by the license applicant.

(b) PROCEDURES OF THE COMMISSION.—With-in 18 months after the date of enactment ofthis section, the Commission shall, afterconsultation with the interested federalagencies and states and after public com-ment and review, issue additional regula-tions governing the issuance of a licenseunder section 15 of the Federal Power Act (16U.S.C. 808). Such regulations shall—

(1) set a schedule for the Commission toissue—

(A) a tendering notice indicating that anapplication has been filed with the Commis-sion;

(B) advanced notice to resource agencies ofthe issuance of the Ready for EnvironmentalAnalysis Notice requesting submission ofrecommendations, conditions, prescriptions,and comments;

(C) a license decision after completion ofenvironmental assessments or environ-mental impact statements prepared pursuantto the National Environmental Policy Act;and

(D) responses to petitions, motions, com-plaints and requests for rehearing;

(2) set deadlines for an applicant to con-duct all needed resource studies in support ofits license application;

(3) ensure a coordinated schedule for allmajor actions by the applicant, the Commis-sion, affected Federal and State agencies, In-dian Tribes and other parties, through finaldecision on the application; and

(4) provide for the adjustment of schedulesif unavoidable delays occur.SEC. 307. RELICENSING STUDY.

(a) IN GENERAL.—The Federal Energy Reg-ulatory Commission shall, jointly with theSecretary of Commerce, the Secretary of theInterior, and the Secretary of Agriculture,conduct a study of all new licenses issued forexisting projects under section 15 of the Fed-eral Power Act (16 U.S.C. 808) since January1, 1994.

(b) SCOPE.—The study shall analyze:(1) the length of time the Commission has

taken to issue each new license for an exist-ing project;

(2) the additional cost to the licensee at-tributable to new license conditions;

(3) the change in generating capacity at-tributable to new license conditions;

(4) the environmental benefits achieved bynew license conditions;

(5) significant unmitigated environmentaldamage of the project and costs to mitigatesuch damage; and

(6) litigation arising from the issuance orfailure to issue new licenses for existingprojects under section 15 of the FederalPower Act or the imposition or failure to im-pose new license conditions.

(c) DEFINITION.—As used in this section,the term ‘‘new license condition’’ means anycondition imposed under—

(1) section 4(e) of the Federal Power Act (16U.S.C. 797(e)),

(2) section 10(a) of the Federal Power Act(16 U.S.C. 803(a)),

(2) section 10(e) of the Federal Power Act(16 U.S.C. 803(e)),

(3) section 10(j) of the Federal Power Act(16 U.S.C. 803(j)),

(4) section 18 of the Federal Power Act (16U.S.C. 811), or

(5) section 401(d) of the Clean Water Act (33U.S.C. 1341(d)).

(d) CONSULTATION.—The Commission shallgive interested persons and licensees an op-portunity to submit information and viewsin writing.

(e) REPORT.—The Commission shall reportits findings to the Committee on Energy andNatural Resources of the United States Sen-ate and the Committee on Energy and Com-merce of the House of Representatives notlater than 24 months after the date of enact-ment of this section.SEC. 308. DATA COLLECTION PROCEDURES.

Within 24 months after the date of enact-ment of this section, the Federal EnergyRegulatory Commission, the Secretary ofthe Interior, the Secretary of Commerce, andthe Secretary of Agriculture shall jointly de-velop procedures for ensuring complete andaccurate information concerning the timeand cost to parties in the hydroelectric li-censing process under part I of the FederalPower Act (16 U.S.C. 791 et seq.). Such datashall be published regularly, but no less fre-quently than every three years.

TITLE IV—INDIAN ENERGYSEC. 401. COMPREHENSIVE INDIAN ENERGY PRO-

GRAM.Title XXVI of the Energy Policy Act of

1992 (25 U.S.C. 3501–3506) is amended by add-ing after section 2606 the following:‘‘SEC. 2607. COMPREHENSIVE INDIAN ENERGY

PROGRAM.‘‘(a) DEFINITIONS.—For purposes of this

section—‘‘(1) the term ‘Director’ means the Director

of the Office of Indian Energy Policy andPrograms established by section 217 of theDepartment of Energy Organization Act, and

‘‘(2) the term ‘Indian land’ means—‘‘(A) any land within the limits of an In-

dian reservation, pueblo, or rancheria;‘‘(B) any land not within the limits of an

Indian reservation, pueblo, or rancheriawhose title on the date of enactment of thissection was held—

‘‘(i) in trust by the United States for thebenefit of an Indian tribe,

‘‘(ii) by an Indian tribe subject to restric-tion by the United States against alienation,or

‘‘(iii) by a dependent Indian community;and

‘‘(C) land conveyed to an Alaska NativeCorporation under the Alaska Native ClaimsSettlement Act.

‘‘(b) INDIAN ENERGY EDUCATION PLANNINGAND MANAGEMENT ASSISTANCE.—

‘‘(1) The Director shall establish programswithin the Office of Indian Energy Policyand Programs to assist Indian tribes inmeeting their energy education, researchand development, planning, and managementneeds.

‘‘(2) The Director may make grants, on acompetitive basis, to an Indian tribe for—

‘‘(A) renewable energy, energy efficiency,and conservation programs;

‘‘(B) studies and other activities sup-porting tribal acquisition of energy supplies,services, and facilities;

‘‘(C) planning, constructing, developing,operating, maintaining, and improving tribalelectrical generation, transmission, and dis-tribution facilities; and

‘‘(D) developing, constructing, and inter-connecting electric power transmission fa-cilities with transmission facilities ownedand operated by a Federal power marketingagency or an electric utility that providesopen access transmission service.

‘‘(3) The Director may develop, in consulta-tion with Indian tribes, a formula for mak-ing grants under this section. The formulamay take into account the following—

‘‘(A) the total number of acres of Indianland owned by an Indian tribe;

‘‘(B) the total number of households on theIndian tribe’s Indian land;

‘‘(C) the total number of households on theIndian tribe’s Indian land that have no elec-tricity service or are under-served; and

‘‘(D) financial or other assets available tothe Indian tribe from any source.

‘‘(4) In making a grant under paragraph (2),the Director shall give priority to an appli-cation received from an Indian tribe that isnot served or is served inadequately by anelectric utility, as that term is defined insection 3(4) of the Public Utility RegulatoryPolicies Act of 1978 (16 U.S.C. 2602(4)), or bya person, State agency, or any other non-fed-eral entity that owns or operates a local dis-tribution facility used for the sale of electricenergy to an electric consumer.

‘‘(5) There are authorized to be appro-priated to the Department of Energy suchsums as may be necessary to carry out thepurposes of this section.

‘‘(6) The Secretary is authorized to promul-gate such regulations as the Secretary deter-mines to be necessary to carry out the provi-sions of this subsection.

‘‘(c) LOAN GUARANTEE PROGRAM.—‘‘(1) AUTHORITY.—The Secretary may guar-

antee not more than 90 percent of the unpaidprincipal and interest due on any loan madeto any Indian tribe for energy development,including the planning, development, con-struction, and maintenance of electrical gen-eration plants, and for transmission and de-livery mechanisms for electricity producedon Indian land. A loan guaranteed under thissubsection shall be made by—

‘‘(A) a financial institution subject to theexamination of the Secretary; or

‘‘(B) an Indian tribe, from funds of the In-dian tribe, to another Indian tribe.

‘‘(2) AVAILABILITY OF APPROPRIATIONS.—Amounts appropriated to cover the cost ofloan guarantees shall be available withoutfiscal year limitation to the Secretary tofulfill obligations arising under this sub-section.

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—‘‘(A) There are authorized to be appro-

priated to the Secretary such sums as maybe necessary to cover the cost of loan guar-antees, as defined by section 502(5) of theFederal Credit Reform Act of 1990 (2 U.S.C.661a(5)).

‘‘(B) There are authorized to be appro-priated to the Secretary such sums as maybe necessary to cover the administrative ex-penses related to carrying out the loan guar-antee program established by this sub-section.

‘‘(4) LIMITATION ON AMOUNT.—The aggre-gate outstanding amount guaranteed by theSecretary of Energy at any one time underthis subsection shall not exceed $2,000,000,000.

‘‘(5) REGULATIONS.—The Secretary is au-thorized to promulgate such regulations asthe Secretary determines to be necessary tocarry out the provisions of this subsection.

CONGRESSIONAL RECORD — SENATE S1453March 5, 2002‘‘(d) INDIAN ENERGY PREFERENCE.—(1) An

agency or department of the United StatesGovernment may give, in the purchase ofelectricity, oil, gas, coal, or other energyproduct or by-product, preference in suchpurchase to an energy and resource produc-tion enterprise, partnership, corporation, orother type of business organization majorityor wholly owned and controlled by a tribalgovernment.

‘‘(2) In implementing this subsection, anagency or department shall pay no morethan the prevailing market price for the en-ergy product or by-product and shall obtainno less than existing market terms and con-ditions.

‘‘(e) EFFECT ON OTHER LAWS.—This sectiondoes not—

‘‘(1) limit the discretion vested in an Ad-ministrator of a Federal power marketingagency to market and allocate Federalpower, or

‘‘(2) alter Federal laws under which a Fed-eral power marketing agency markets, allo-cates, or purchases power.’’.SEC. 402. OFFICE OF INDIAN ENERGY POLICY

AND PROGRAMS.Title II of the Department of Energy Orga-

nization Act is amended by adding at the endthe following:

‘‘OFFICE OF INDIAN ENERGY POLICY ANDPROGRAMS

‘‘SEC. 217. (a) There is established withinthe Department an Office of Indian EnergyPolicy and Programs. This Office shall beheaded by a Director, who shall be appointedby the Secretary and compensated at therate equal to that of level IV of the Execu-tive Schedule under section 5315 of Title 5,United States Code.

‘‘(b) The Director shall provide, direct, fos-ter, coordinate, and implement energy plan-ning, education, management, conservation,and delivery programs of the Departmentthat—

‘‘(1) promote tribal energy efficiency andutilization;

‘‘(2) modernize and develop, for the benefitof Indian tribes, tribal energy and economicinfrastructure related to natural resourcedevelopment and electrification;

‘‘(3) preserve and promote tribal sov-ereignty and self determination related toenergy matters and energy deregulation;

‘‘(4) lower or stabilize energy costs; and‘‘(5) electrify tribal members’ homes and

tribal lands.‘‘(c) The Director shall carry out the duties

assigned the Secretary or the Director undertitle XXVI of the Energy Policy Act of 1992(25 U.S.C. 3501 et seq.).’’.SEC. 403. CONFORMING AMENDMENTS.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 2603(c) of the Energy Policy Act of1992 (25 U.S.C. 3503(c)) is amended to read asfollows:

‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as may be necessary to carry out thepurposes of this section.’’.

(b) TABLE OF CONTENTS.—The table of con-tents of the Department of Energy Act isamended by inserting after the item relatingto section 216 the following new item:

‘‘Sec. 217. Office of Indian Energy Policy andPrograms.’’.

(c) EXECUTIVE SCHEDULE.—Section 5315 oftitle 5, United States Code, is amended by in-serting ‘‘Director, Office of Indian EnergyPolicy and Programs, Department of En-ergy.’’ after ‘‘Inspector General, Departmentof Energy.’’.SEC. 404. SITING ENERGY FACILITIES ON TRIBAL

LANDS.(a) DEFINITIONS.—For purposes of this sec-

tion:

(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’means any Indian tribe, band, nation, orother organized group or community, whichis recognized as eligible for the special pro-grams and services provided by the UnitedStates to Indians because of their status asIndians, except that such term does not in-clude any Regional Corporation as defined insection 3(g) of the Alaska Native Claims Set-tlement Act (43 U.S.C. 1602(g)).

(2) INTERESTED PARTY.—The term ‘‘inter-ested party’’ means a person whose interestscould be adversely affected by the decision ofan Indian tribe to grant a lease or right-of-way pursuant to this section.

(3) PETITION.—The term ‘‘petition’’ meansa written request submitted to the Secretaryfor the review of an action (or inaction) ofthe Indian tribe that is claimed to be in vio-lation of the approved tribal regulations;

(4) RESERVATION.—The term ‘‘reservation’’means—

(A) with respect to a reservation in a Stateother than Oklahoma, all land that has beenset aside or that has been acknowledged ashaving been set aside by the United Statesfor the use of an Indian tribe, the exteriorboundaries of which are more particularlydefined in a final tribal treaty, agreement,executive order, federal statute, secretarialorder, or judicial determination;

(B) with respect to a reservation in theState of Oklahoma, all land that is—

(i) within the jurisdictional area of an In-dian tribe, and

(ii) within the boundaries of the last res-ervation of such tribe that was establishedby treaty, executive order, or secretarialorder.

(5) SECRETARY.—The term ‘‘Secretary’’means the Secretary of the Interior.

(6) TRIBAL LANDS.—The term ‘‘tribal lands’’means any tribal trust lands or other landsowned by an Indian tribe that are within areservation, or tribal trust lands locatedcontiguous thereto.

(b) LEASES INVOLVING GENERATION, TRANS-MISSION, DISTRIBUTION OR ENERGY PROC-ESSING FACILITIES.—An Indian tribe maygrant a lease of tribal land for electric gen-eration, transmission, or distribution facili-ties, or facilities to process or refine renew-able or nonrenewable energy resources devel-oped on tribal lands, and such leases shallnot require the approval of the Secretary ifthe lease is executed under tribal regulationsapproved by the Secretary under this sub-section and the term of the lease does not ex-ceed 30 years.

(c) RIGHTS-OF-WAY FOR ELECTRIC GENERA-TION, TRANSMISSION, DISTRIBUTION OR ENERGYPROCESSING FACILITIES.—An Indian tribemay grant a right-of-way over tribal landsfor a pipeline or an electric transmission ordistribution line without separate approvalby the Secretary, if—

(1) the right-of-way is executed under andcomplies with tribal regulations approved bythe Secretary and the term of the right-of-way does not exceed 30 years; and

(2) the pipeline or electric transmission ordistribution line serves—

(A) an electric generation, transmission ordistribution facility located on tribal land;or

(B) a facility located on tribal land thatprocesses or refines renewable or nonrenew-able energy resources developed on triballands.

(d) RENEWALS.—Leases or rights-of-way en-tered into under this subsection may be re-newed at the discretion of the Indian tribe inaccordance with the requirements of thissection.

(e) TRIBAL REGULATION REQUIREMENTS.—(1) The Secretary shall have the authority

to approve or disapprove tribal regulationsrequired under this subsection. The Sec-

retary shall approve such tribal regulationsif they are comprehensive in nature, includ-ing provisions that address—

(A) securing necessary information fromthe lessee or right-of-way applicant;

(B) term of the conveyance;(C) amendments and renewals;(D) consideration for the lease or right-of-

way;(E) technical or other relevant require-

ments;(F) requirements for environmental review

as set forth in paragraph (3);(G) requirements for complying with all

applicable environmental laws; and(H) final approval authority.(2) No lease or right-of-way shall be valid

unless authorized in compliance with the ap-proved tribal regulations.

(3) An Indian tribe, as a condition of secur-ing Secretarial approval as contemplated inparagraph (1), must establish an environ-mental review process that includes thefollowing—

(A) an identification and evaluation of allsignificant environmental impacts of theproposed action as compared to a no actionalternative;

(B) identification of proposed mitigation;(C) a process for ensuring that the public is

informed of and has an opportunity to com-ment on the proposed action prior to tribalapproval of the lease or right-of-way; and

(D) sufficient administrative support andtechnical capability to carry out the envi-ronmental review process.

(4) The Secretary shall review and approveor disapprove the regulations of the Indiantribe within 180 days of the submission ofsuch regulations to the Secretary. Any dis-approval of such regulations by the Sec-retary shall be accompanied by written docu-mentation that sets forth the basis for thedisapproval. The 180-day period may be ex-tended by the Secretary after consultationwith the Indian tribe.

(5) If the Indian tribe executes a lease orright-of-way pursuant to tribal regulationsrequired under this subsection, the Indiantribe shall provide the Secretary with—

(A) a copy of the lease or right-of-way doc-ument and all amendments and renewalsthereto; and

(B) in the case of regulations or a lease orright-of-way that permits payment to bemade directly to the Indian tribe, docu-mentation of the payments sufficient to en-able the Secretary to discharge the trust re-sponsibility of the United States as appro-priate under existing law.

(6) The United States shall not be liable forlosses sustained by any party to a lease exe-cuted pursuant to tribal regulations underthis subsection, including the Indian tribe.

(7)(A) An interested party may, after ex-haustion of tribal remedies, submit, in atimely manner, a petition to the Secretaryto review the compliance of the Indian tribewith any tribal regulations approved underthis subsection. If upon such review, the Sec-retary determines that the regulations wereviolated, the Secretary may take such actionas may be necessary to remedy the violation,including rescinding or holding the lease orright-of-way in abeyance until the violationis cured. The Secretary may also rescind theapproval of the tribal regulations and re-assume the responsibility for approval ofleases or rights-of-way associated with thefacilities addressed in this section.

(B) If the Secretary seeks to remedy a vio-lation described in subparagraph (A), theSecretary shall—

(i) make a written determination with re-spect to the regulations that have been vio-lated;

CONGRESSIONAL RECORD — SENATES1454 March 5, 2002(ii) provide the Indian tribe with a written

notice of the alleged violation together withsuch written determination; and

(iii) prior to the exercise of any remedy orthe rescission of the approval of the regula-tions involved and reassumption of the leaseor right-of-way approval responsibility, pro-vide the Indian tribe with a hearing and areasonable opportunity to cure the allegedviolation.

(C) The tribe shall retain all rights to ap-peal as provided by regulations promulgatedby the Secretary.

(f) AGREEMENTS.—(1) Agreements between an Indian tribe

and a business entity that are directly asso-ciated with the development of electric gen-eration, transmission or distribution facili-ties, or facilities to process or refine renew-able or nonrenewable energy resources devel-oped on tribal lands, shall not separately re-quire the approval of the Secretary pursuantto section 18 of title 25, United States Code,so long as the activity that is the subject ofthe agreement has been the subject of an en-vironmental review process pursuant to sub-section (e) of this section.

(2) The United States shall not be liable forany losses or damages sustained by anyparty, including the Indian tribe, that areassociated with an agreement entered intounder this subsection.

(g) DISCLAIMER.—Nothing in this section isintended to modify or otherwise affect theapplicability of any provision of the IndianMineral Leasing Act of 1938 (25 U.S.C. 396a–396g); Indian Mineral Development Act of1982 (25 U.S.C. 2101–2108); Surface MiningControl and Reclamation Act of 1977 (30U.S.C. 1201–1328); any amendments thereto;or any other laws not specifically addressedin this section.SEC. 405. INDIAN MINERAL DEVELOPMENT ACT

REVIEW.(a) IN GENERAL.—The Secretary of the In-

terior shall conduct a review of the activitiesthat have been conducted by the govern-ments of Indian tribes under the authority ofthe Indian Mineral Development Act of 1982(25 U.S.C. 2101 et seq.).

(b) REPORT.—Not later than one year afterthe date of the enactment of this Act, theSecretary shall transmit to the Committeeon Resources of the House of Representativesand the Committee on Indian Affairs and theCommittee on Energy and Natural Resourcesof the Senate a report containing—

(1) the results of the review;(2) recommendations designed to help en-

sure that Indian tribes have the opportunityto develop their nonrenewable energy re-sources; and

(3) an analysis of the barriers to the devel-opment of energy resources on Indian land,including federal policies and regulations,and make recommendations regarding theremoval of those barriers.

(c) CONSULTATION.—The Secretary shallconsult with Indian tribes on a government-to-government basis in developing the reportand recommendations as provided in thissubsection.SEC. 406. RENEWABLE ENERGY STUDY.

(a) IN GENERAL.—Not later than 2 yearsafter the date of the enactment of this Act,and once every 2 years thereafter, the Sec-retary of Energy shall transmit to the Com-mittees on Energy and Commerce and Re-sources of the House of Representatives andthe Committees on Energy and Natural Re-sources and Indian Affairs of the Senate a re-port on energy consumption and renewableenergy development potential on Indianland. The report shall identify barriers tothe development of renewable energy by In-dian tribes, including federal policies andregulations, and make recommendations re-garding the removal of such barriers.

(b) CONSULTATION.—The Secretary shallconsult with Indian tribes on a government-to-government basis in developing the reportand recommendations as provided in thissection.SEC. 407. FEDERAL POWER MARKETING ADMINIS-

TRATIONS.Title XXVI of the Energy Policy Act of

1992 (25 U.S.C. 3501) (as amended by section201) is amended by adding the at the end ofthe following:‘‘SEC. 2608. FEDERAL POWER MARKETING ADMIN-

ISTRATIONS.‘‘(a) DEFINITION OF ADMINISTRATOR.—In

this section, the term ‘Administrator’means—

‘‘(1) the Administrator of the BonnevillePower Administration; or

‘‘(2) the Administrator of the Western AreaPower Administration.

‘‘(b) ASSISTANCE FOR TRANSMISSION STUD-IES.—

‘‘(1) Each Administrator may provide tech-nical assistance to Indian tribes seeking touse the high-voltage transmission system fordelivery of electric power. The costs of suchtechnical assistance shall be funded—

‘‘(A) by the Administrator using non-reim-bursable funds appropriated for this purpose,or

‘‘(B) by the Indian tribe.‘‘(2) PRIORITY FOR ASSISTANCE FOR TRANS-

MISSION STUDIES.—In providing discretionaryassistance to Indian tribes under paragraph(1), each Administrator shall give priority infunding to Indian tribes that have limited fi-nancial capability to conduct such studies.

‘‘(c) POWER ALLOCATION STUDY.—‘‘(1) Not later than 2 years after the date of

enactment of this Act, the Secretary of En-ergy shall transmit to the Committees onEnergy and Commerce and Resources of theHouse of Representatives and the Commit-tees on Energy and Natural Resources andIndian Affairs of the Senate a report on In-dian tribes’ utilization of federal power allo-cations of the Western Area Power Adminis-tration, or power sold by the SouthwesternPower Administration, and the BonnevillePower Administration to or for the benefit ofIndian tribes in their service areas. The re-port shall identify—

‘‘(A) the amount of power allocated totribes by the Western Area Power Adminis-tration, and how the benefit of that power isutilized by the tribes;

‘‘(B) the amount of power sold to tribes byother Power Marketing Administrations; and

‘‘(C) existing barriers that impede tribalaccess to and utilization of federal power,and opportunities to remove such barriersand improve the ability of the Power Mar-keting Administration to facilitate the utili-zation of federal power by Indian tribes.

‘‘(2) The Power Marketing Administrationsshall consult with Indian tribes on a govern-ment-to-government basis in developing thereport provided in this section.

‘‘(d) AUTHORIZATION FOR APPROPRIATION.—There are authorized to be appropriated tothe Secretary of Energy such sums as maybe necessary to carry out the purposes ofthis section.’’.SEC. 408. FEASIBILITY STUDY OF COMBINED

WIND AND HYDROPOWER DEM-ONSTRATION PROJECT.

(a) STUDY.—The Secretary of Energy, incoordination with the Secretary of the Armyand the Secretary of the Interior, shall con-duct a study of the cost and feasibility of de-veloping a demonstration project that woulduse wind energy generated by Indian tribesand hydropower generated by the ArmyCorps of Engineers on the Missouri River tosupply firming power to the Western AreaPower Administration.

(b) SCOPE OF STUDY.—The study shall—

(1) determine the feasibility of the blend-ing of wind energy and hydropower gen-erated from the Missouri River dams oper-ated by the Army Corps of Engineers;

(2) review historical purchase requirementsand projected purchase requirements forfirming and the patterns of availability anduse of firming energy;

(3) assess the wind energy resource poten-tial on tribal lands and projected cost sav-ings through a blend of wind and hydropowerover a thirty-year period;

(4) include a preliminary interconnectionstudy and a determination of resource ade-quacy of the Upper Great Plains Region ofthe Western Area Power Administration;

(5) determine seasonal capacity needs andassociated transmission upgrades for inte-gration of tribal wind generation; and

(6) include an independent tribal engineeras a study team member.

(c) REPORT.—The Secretary of Energy andSecretary of the Army shall submit a reportto Congress not later than one year after thedate of enactment of this title. The Secre-taries shall include in the report—

(1) an analysis of the potential energy costsavings to the customers of the WesternArea Power Administration through theblend of wind and hydropower;

(2) an evaluation of whether a combinedwind and hydropower system can reduce res-ervoir fluctuation, enhance efficient and re-liable energy production and provide Mis-souri River management flexibility;

(3) recommendations for a demonstrationproject which the Western Area Power Ad-ministration could carry out in partnershipwith an Indian tribal government or tribalgovernment energy consortium to dem-onstrate the feasibility and potential ofusing wind energy produced on Indian landsto supply firming energy to the WesternArea Power Administration or other Federalpower marketing agency; and

(4) an identification of the economic andenvironmental benefits to be realizedthrough such a federal-tribal partnership andidentification of how such a partnershipcould contribute to the energy security ofthe United States.

(d) CONSULTATION.—The Secretary shallconsult with Indian tribes on a government-to-government basis in developing the reportand recommendations provided in this sec-tion.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated$500,000 to carry out this section, which shallremain available until expended. All costsincurred by the Western Area Power Admin-istration associated with performing thetasks required under this section shall benon-reimbursable.

TITLE V—NUCLEAR POWERSubtitle A—Price-Anderson Act

ReauthorizationSEC. 501. SHORT TITLE.

This subtitle may be cited as the ‘‘Price-Anderson Amendments Act of 2002’’.SEC. 502. EXTENSION OF DEPARTMENT OF EN-

ERGY INDEMNIFICATION AUTHOR-ITY.

Section 170 d.(1)(A) of the Atomic EnergyAct of 1954 (42 U.S.C. 2210(d)(1)(A)) is amend-ed by striking ‘‘, until August 1, 2002,’’.SEC. 503. DEPARTMENT OF ENERGY LIABILITY

LIMIT.(a) INDEMNIFICATION OF DEPARTMENT OF EN-

ERGY CONTRACTORS.—Section 170 d. of theAtomic Energy Act of 1954 (42 U.S.C. 2210(d))is amended by striking paragraph (2) and in-serting the following:

‘‘(2) In agreements of indemnification en-tered into under paragraph (1), theSecretary—

‘‘(A) may require the contractor to provideand maintain financial protection of such a

CONGRESSIONAL RECORD — SENATE S1455March 5, 2002type and in such amounts as the Secretaryshall determine to be appropriate to coverpublic liability arising out of or in connec-tion with the contractual activity, and

‘‘(B) shall indemnify the persons indem-nified against such claims above the amountof the financial protection required, in theamount of $10,000,000,000 (subject to adjust-ment for inflation under subsection t.), inthe aggregate, for all persons indemnified inconnection with such contract and for eachnuclear incident, including such legal costsof the contractor as are approved by the Sec-retary.’’.

(b) CONTRACT AMENDMENTS.—Section 170 d.of the Atomic Energy Act of 1954 (42 U.S.C.2210(d)) is further amended by striking para-graph (3) and inserting the following:

‘‘(3) All agreements of indemnificationunder which the Department of Energy (orits predecessor agencies) may be required toindemnify any person under this sectionshall be deemed to be amended, on the dateof the enactment of the Price-AndersonAmendments Act of 2002, to reflect theamount of indemnity for public liability andany applicable financial protection requiredof the contractor under this subsection.’’.

(c) LIABILITY LIMIT.—Section 170 e.(1)(B) ofthe Atomic Energy Act of 1954 (42 U.S.C.2210(e)(1)(B)) is amended by striking ‘‘para-graph (3)’’ and inserting ‘‘paragraph (2)(B)’’.SEC. 504. INCIDENTS OUTSIDE THE UNITED

STATES.(a) AMOUNT OF INDEMNIFICATION.—Section

170 d.(5) of the Atomic Energy Act of 1954 (42U.S.C. 2210(d)(5)) is amended by striking‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’.

(b) LIABILITY LIMIT.—Section 170 e.(4) ofthe Atomic Energy Act of 1954 (42 U.S.C.2210(e)(4) is amended by striking‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’.SEC. 505. REPORTS.

Section 170 p. of the Atomic Energy Act of1954 (42 U.S.C. 2210(p)) is amended by striking‘‘August 1, 1998’’ and inserting ‘‘August 1,2008’’.SEC. 506. INFLATION ADJUSTMENT.

Section 170 t. of the Atomic Energy Act of1954 (42 U.S.C. 2210 (t)) is amended—

(1) by renumbering paragraph (2) as para-graph (3); and

(2) by adding after paragraph (1) the fol-lowing:

‘‘(2) The Secretary shall adjust the amountof indemnification provided under an agree-ment of indemnification under subsection d.not less than once during each 5-year periodfollowing July 1, 2002, in accordance with theaggregate percentage change in the Con-sumer Price Index since—

‘‘(A) such date of enactment, in the case ofthe first adjustment under this paragraph; or

‘‘(B) the previous adjustment under thisparagraph.’’.SEC. 507. CIVIL PENALTIES.

(a) REPEAL OF AUTOMATIC REMISSION.—Sec-tion 234A b.(2) of the Atomic Energy of 1954(42 U.S.C. 2282a (b)(2)) is amended by strikingthe last sentence.

(b) LIMITATION FOR NOT-FOR-PROFIT INSTI-TUTIONS.—Subsection d. of section 234A ofthe Atomic Energy Act of 1954 (42 U.S.C.2282a(d)) is amended to read as follows:

‘‘d. (1) Notwithstanding subsection a., acivil penalty for a violation under subsectiona. shall not exceed the amount of the feepaid under the contract under which suchviolation occurs for any not-for-profit con-tractor, subcontractor, or supplier.

‘‘(2) For purposes of this section, the term‘not-for-profit’ means that no part of the netearnings of the contractor, subcontractor, orsupplier inures, or may lawfully inure, to thebenefit of any natural person or for-profit ar-tificial person.’’.

(c) EFFECTIVE DATE.—The amendmentsmade by this section shall not apply to any

violation of the Atomic Energy Act of 1954occurring under a contract entered into be-fore the date of enactment of this section.SEC. 508. EFFECTIVE DATE.

The amendments made by sections 503(a)and 504 shall not apply to any nuclear inci-dent that occurs before the date of the enact-ment of this subtitle.

Subtitle B—Miscellaneous ProvisionsSEC. 511. URANIUM SALES.

(a) INVENTORY SALES.—Section 3112(d) ofthe USEC Privatization Act (42 U.S.C. 2297h–10(d)) is amended to read as follows:

‘‘(d) INVENTORY SALES.—(1) In addition tothe transfers authorized under subsections(b), (c), and (e), the Secretary may, fromtime to time, sell or transfer uranium (in-cluding natural uranium concentrates, nat-ural uranium hexafluoride, enriched ura-nium, and depleted uranium) from the De-partment of Energy’s stockpile.

‘‘(2) Except as provided in subsections (b),(c), and (e), the Secretary may not deliveruranium in any form for consumption by endusers in any year in excess of the followingamounts:

‘‘Annual Maximum Deliveries to End UsersMillion lbs. U3O8

equivalent‘‘Year:

2003 through 2009 .................... 32010 ......................................... 52011 ......................................... 52012 ......................................... 72013 and each year thereafter 10.

‘‘(3) Except as provided in subsections (b),(c), and (e), no sale or transfer of uranium inany form shall be made unless—

‘‘(A) the President determines that the ma-terial is not necessary for national securityneeds;

‘‘(B) the Secretary determines, based onthe written views of the Secretary of Stateand the Assistant to the President for Na-tional Security Affairs, that the sale ortransfer will not adversely affect the na-tional security interests of the UnitedStates;

‘‘(C) the Secretary determines that thesale of the material will not have an adversematerial impact on the domestic uraniummining, conversion, or enrichment industry,taking into account the sales of uraniumunder the Russian HEU Agreement and theSuspension Agreement; and

‘‘(D) the price paid to the Secretary willnot be less than the fair market value of thematerial.’’.

(b) EXEMPT TRANSFERS AND SALES.—Sec-tion 3112(e) of the USEC Privatization Act(42 U.S.C. 2297h–10(e)) is amended to read asfollows:

‘‘(e) EXEMPT SALES OR TRANSFERS.—Not-withstanding subsection (d)(2), the Secretarymay transfer or sell uranium—

‘‘(1) to the Tennessee Valley Authority foruse pursuant to the Department of Energy’shighly enriched uranium or tritium program,to the extent provided by law;

‘‘(2) to research and test reactors under theUniversity Reactor Fuel Assistance and Sup-port Program or the Reduced Enrichment forResearch and Test Reactors Program;

‘‘(3) to USEC Inc. to replace contaminateduranium received from the Department ofEnergy when the United States EnrichmentCorporation was privatized;

‘‘(4) to any person for emergency purposesin the event of a disruption in supply to endusers in the United States; and

‘‘(5) to any person for national securitypurposes, as determined by the Secretary.’’.SEC. 512. REAUTHORIZATION OF THORIUM REIM-

BURSEMENT.(a) REIMBURSEMENT OF THORIUM LICENS-

EES.—Section 1001(b)(2)(C) of the Energy Pol-icy Act of 1992 (42 U.S.C. 2296a) is amended—

(1) by striking ‘‘$140,000,000’’ and inserting‘‘$365,000,000’’; and

(2) by adding at the end the following:‘‘Such payments shall not exceed the fol-lowing amounts:

‘‘(i) $90,000,000 in fiscal year 2002.‘‘(ii) $55,000,000 in fiscal year 2003.‘‘(iii) $20,000,000 in fiscal year 2004.‘‘(iv) $20,000,000 in fiscal year 2005.‘‘(v) $20,000,000 in fiscal year 2006.‘‘(vi) $20,000,000 in fiscal year 2007.

Any amounts authorized to be paid in a fis-cal year under this subparagraph that arenot paid in that fiscal year may be paid insubsequent fiscal years.’’.

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 1003(a) of the Energy Policy Act of1992 (42 U.S.C. 2296a–2) is amended by strik-ing ‘‘$490,000,000’’ and inserting‘‘$715,000,000’’.

(c) DECONTAMINATION AND DECOMMISSIONINGFUND.—Section 1802(a) of the Atomic EnergyAct of 1954 (42 U.S.C. 2297g–1(a)) is amended—

(1) by striking ‘‘$488,333,333’’ and inserting‘‘$518,233,333’’; and

(2) by inserting after ‘‘inflation’’ the fol-lowing: ‘‘beginning on the date of enactmentof the Energy Policy Act of 1992’’.SEC. 513. FAST FLUX TEST FACILITY.

The Secretary of Energy shall not reac-tivate the Fast Flux Test Facility toconduct—

(1) any atomic energy defense activity,(2) any space-related mission, or(3) any program for the production or utili-

zation of nuclear material if the Secretaryhas determined, in a record of decision, thatthe program can be carried out at existingoperating facilities.

DIVISION—DOMESTIC OIL AND GASPRODUCTION AND TRANSPORTATIONTITLE VI—OIL AND GAS PRODUCTION

SEC. 601. PERMANENT AUTHORITY TO OPERATETHE STRATEGIC PETROLEUM RE-SERVE.

(a) AMENDMENT TO TITLE I OF THE ENERGYPOLICY AND CONSERVATION ACT.—Title I ofthe Energy Policy and Conservation Act (42U.S.C. 6211 et seq.) is amended—

(1) by striking section 166 (42 U.S.C. 6246)and inserting—

‘‘SEC. 166. There are authorized to be ap-propriated to the Secretary such sums asmay be necessary to carry out this part, toremain available until expended.’’; and

(2) by striking part E (42 U.S.C. 6251; relat-ing to the expiration of title I of the Act)and its heading.

(b) AMENDMENT TO TITLE II OF THE ENERGYPOLICY AND CONSERVATION ACT.—Title II ofthe Energy Policy and Conservation Act (42U.S.C. 6271 et seq.) is amended—

(1) by striking section 256(h) (42 U.S.C.6276(h)) and inserting—

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary such sums as may be nec-essary to carry out this part, to remainavailable until expended.’’.

(2) by striking section 273(e) (42 U.S.C.6283(e); relating to the expiration of summerfill and fuel budgeting programs); and

(3) by striking part D (42 U.S.C. 6285; relat-ing to the expiration of title II of the Act)and its heading.

(c) TECHNICAL AMENDMENTS.—The table ofcontents for the Energy Policy and Con-servation Act is amended by striking theitems relating to part D of title I and part Dof title II.SEC. 602. FEDERAL ONSHORE LEASING PRO-

GRAMS FOR OIL AND GAS.(a) TIMELY ACTION ON LEASES AND PER-

MITS.—To ensure timely action on oil andgas leases and applications for permits todrill on lands otherwise available for leasing,the Secretary of the Interior shall—

CONGRESSIONAL RECORD — SENATES1456 March 5, 2002(1) ensure expeditious compliance with the

requirements section 102(2)(C) of the Na-tional Environmental Policy Act of 1969 (42U.S.C. 4332(2)(C));

(2) improve consultation and coordinationwith the States;

(3) improve the collection, storage, and re-trieval of information related to such leasingactivities; and

(4) improve inspection and enforcement ac-tivities related to oil and gas leases.

(b) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of carrying out paragraphs(1) through (4) of subsection (a), there are au-thorized to be appropriated to the Secretaryof the Interior $60,000,000 for each of the fis-cal years 2003 through 2006, in addition toamounts otherwise authorized to be appro-priated for the purpose of carrying out sec-tion 17 of the Mineral Leasing Act (30 U.S.C.226).SEC. 603. OIL AND GAS LEASE ACREAGE LIMITA-

TIONS.Section 27(d)(1) of the Mineral Leasing Act

(30 U.S.C. 184(d)(1)) is amended by insertingafter ‘‘acreage held in special tar sand areas’’the following: ‘‘as well as acreage under anylease any portion of which has been com-mitted to a Federally approved unit or coop-erative plan or communitization agreement,or for which royalty, including compen-satory royalty or royalty in kind, was paidin the preceding calendar year,’’.SEC. 604. ORPHANED AND ABANDONED WELLS

ON FEDERAL LAND.(a) ESTABLISHMENT.—(1) The Secretary of

the Interior, in cooperation with the Sec-retary of Agriculture, shall establish a pro-gram to ensure within three years after thedate of enactment of this Act, remediation,reclamation, and closure of orphaned oil andgas wells located on lands administered bythe land management agencies within theDepartment of the Interior and the U.S. For-est Service that are—

(A) abandoned;(B) orphaned; or(C) idled for more than 5 years and having

no beneficial use.(2) The program shall include a means of

ranking critical sites for priority in remedi-ation based on potential environmentalharm, other land use priorities, and publichealth and safety.

(3) The program shall provide that respon-sible parties be identified wherever possibleand that the costs of remediation be recov-ered.

(4) In carrying out the program, the Sec-retary of the Interior shall work coopera-tively with the Secretary of Agriculture andthe states within which the federal lands arelocated, and shall consult with the Secretaryof Energy, and the Interstate Oil and GasCompact Commission.

(b) PLAN.—Within six months from thedate of enactment of this section, the Sec-retary of the Interior, in cooperation withthe Secretary of Agriculture, shall prepare aplan for carrying out the program estab-lished under subsection (a). Copies of theplan shall be transmitted to the Committeeon Energy and Natural Resources of the Sen-ate and the Committee on Resources of theHouse of Representatives.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of the Interior $5,000,000 foreach of fiscal years 2003 through 2005 to carryout the activities provided for in this sec-tion.SEC. 605. ORPHANED AND ABANDONED OIL AND

GAS WELL PROGRAM.(a) ESTABLISHMENT.—The Secretary of En-

ergy shall establish a program to providetechnical assistance to the various oil andgas producing states to facilitate state ef-

forts over a ten-year period to ensure a prac-tical and economical remedy for environ-mental problems caused by orphaned andabandoned exploration or production wellsites on state and private lands. The Sec-retary shall work with the states, throughthe Interstate Oil and Gas Compact Commis-sion, to assist the states in quantifying andmitigating environmental risks of onshoreabandoned and orphaned wells on state andprivate lands.

(b) PROGRAM ELEMENTS.—The programshould include—

(1) mechanisms to facilitate identificationof responsible parties wherever possible;

(2) criteria for ranking critical sites basedon factors such as other land use priorities,potential environmental harm and publicvisibility; and

(3) information and training programs onbest practices for remediation of differenttypes of sites.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Energy for the activitiesunder this section $5,000,000 for each of fiscalyears 2003 through 2005 to carry out the pro-visions of this section.SEC. 606. OFFSHORE DEVELOPMENT.

Section 5 of the Outer Continental ShelfLands Act of 1953 (43 U.S.C. 1334) is amendedby adding at the end the following:

‘‘(k) SUSPENSION OF OPERATIONS FORSUBSALT EXPLORATION.—Notwithstandingany other provision of law or regulation, theSecretary may grant a request for a suspen-sion of operations under any lease to allowthe lessee to reprocess or reinterpret geo-logic or geophysical data beneathallocthonous salt sheets, when in the Sec-retary’s judgment such suspension is nec-essary to prevent waste caused by the drill-ing of unnecessary wells, and to maximizeultimate recovery of hydrocarbon resourcesunder the lease. Such suspension shall belimited to the minimum period of time theSecretary determines is necessary to achievethe objectives of this subsection.’’.SEC. 607. COALBED METHANE STUDY.

(a) STUDY.—The National Academy ofSciences shall conduct a study on the effectsof coalbed methane production on surfaceand water resources.

(b) DATA ANALYSIS.—The study shall ana-lyze available hydrogeologic and water qual-ity data, along with other pertinent environ-mental or other information to determine—

(1) adverse effects associated with surfaceor subsurface disposal of waters producedduring extraction of coalbed methane;

(2) depletion of groundwater aquifers ordrinking water sources associated with pro-duction of coalbed methane;

(3) any other significant adverse impactsto surface or water resources associated withproduction of coalbed methane; and

(4) production techniques or other factorsthat can mitigate adverse impacts from coal-bed methane development.

(c) RECOMMENDATIONS.—The study shallanalyze existing Federal and State laws andregulations, and make recommendations asto changes, if any, to Federal law necessaryto address adverse impacts to surface orwater resources attributable to coalbedmethane development.

(d) COMPLETION OF STUDY.—The NationalAcademy of Sciences shall submit the studyto the Secretary of the Interior within 18months after the date of enactment of thisAct, and shall make the study available tothe public at the same time.

(e) REPORT TO CONGRESS.—The Secretary ofthe Interior shall report to Congress within6 months of her receipt of the study on—

(1) the findings and recommendations ofthe study;

(2) the Secretary’s agreement or disagree-ment with each of its findings and rec-ommendations; and

(3) any recommended changes in funding toaddress the effects of coalbed methane pro-duction on surface and water resources.SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOV-

ERY OF DOMESTIC OIL AND GAS RE-SOURCES.

(a) EVALUATION.—The Secretary of Energy,in coordination with the Secretaries of theInterior, Commerce, and Treasury, Indiantribes and the Interstate Oil and Gas Com-pact Commission, shall evaluate the impactof existing Federal and State tax and royaltypolicies on the development of domestic oiland gas resources and on revenues to Fed-eral, State, local and tribal governments.

(b) SCOPE.—The evaluation under sub-section (a) shall—

(1) analyze the impact of fiscal policies onoil and natural gas exploration, developmentdrilling, and production under different pricescenarios, including the impact of the indi-vidual and corporate Alternative MinimumTax, state and local production taxes andfixed royalty rates during low price periods;

(2) assess the effect of existing federal andstate fiscal policies on investment under dif-ferent geological and developmental cir-cumstances, including but not limited todeepwater environments, subsalt formations,deep and deviated wells, coalbed methaneand other unconventional oil and gas forma-tions;

(3) assess the extent to which federal andstate fiscal policies negatively impact theultimate recovery of resources from existingfields and smaller accumulations in offshorewaters, especially in water depths less than800 meters, of the Gulf of Mexico;

(4) compare existing federal and state poli-cies with tax and royalty regimes in othercountries with particular emphasis on simi-lar geological, developmental and infrastruc-ture conditions; and

(5) evaluate how alternative tax and roy-alty policies, including counter-cyclicalmeasures, could increase recovery of domes-tic oil and natural gas resources and reve-nues to Federal, State, local and tribal gov-ernments.

(c) POLICY RECOMMENDATIONS.—Based uponthe findings of the evaluation under sub-section (a), a report describing the findingsand recommendations for policy changesshall be provided to the President, the Con-gress, the Governors of the member states ofthe Interstate Oil and Gas Compact Commis-sion, and Indian tribes having an oil and gaslease approved by the Secretary of the Inte-rior. The recommendations should ensurethat the public interest in receiving the eco-nomic benefits of tax and royalty revenues isbalanced with the broader national securityand economic interests in maximizing recov-ery of domestic resources. The report shouldinclude recommendations regarding actionsto—

(1) ensure stable development drilling dur-ing periods of low oil and/or natural gasprices to maintain reserve replacement anddeliverability;

(2) minimize the negative impact of a vola-tile investment climate on the oil and gasservice industry and domestic oil and gas ex-ploration and production;

(3) ensure a consistent level of domesticactivity to encourage the education and re-tention of a technical workforce; and

(4) maintain production capability duringperiods of low oil and/or natural gas prices.

(d) ROYALTY GUIDELINES.—The rec-ommendations required under (c) should in-clude guidelines for private resource holdersas to the appropriate level of royalties givengeology, development cost, and the nationalinterest in maximizing recovery of oil andgas resources.

CONGRESSIONAL RECORD — SENATE S1457March 5, 2002(e) REPORT.—The study under subsection

(a) shall be completed not later than 18months after the date of enactment of thissection. The report and recommendations re-quired in (c) shall be transmitted to thePresident, the Congress, Indian tribes, andthe Governors of the member States of theInterstate Oil and Gas Compact Commission.SEC. 609. STRATEGIC PETROLEUM RESERVE.

(a) FULL CAPACITY.—The President shall—(1) fill the Strategic Petroleum Reserve es-

tablished pursuant to part B of title I of theEnergy Policy and Conservation Act (42U.S.C. 6231 et seq.) to full capacity as soon aspracticable;

(2) acquire petroleum for the Strategic Pe-troleum Reserve by the most practicable andcost-effective means, including the acquisi-tion of crude oil the United States is entitledto receive in kind as royalties from produc-tion on Federal lands; and

(3) ensure that the fill rate minimizes im-pacts on petroleum markets.

(b) RECOMMENDATIONS.—Not later than 180days after the date of enactment of this Act,the Secretary of Energy shall submit to Con-gress a plan to—

(1) eliminate any infrastructure impedi-ments that may limit maximum drawdowncapability; and

(2) determine whether the capacity of theStrategic Petroleum Reserve on the date ofenactment of this section is adequate inlight of the increasing consumption of petro-leum and the reliance on imported petro-leum.

TITLE VII—NATURAL GAS PIPELINESSubtitle A—Alaska Natural Gas Pipeline

SEC. 701. SHORT TITLE.This subtitle may be cited as the ‘‘Alaska

Natural Gas Pipeline Act of 2002’’.SEC. 702. FINDINGS.

The Congress finds that:(1) Construction of a natural gas pipeline

system from the Alaskan North Slope toUnited States markets is in the national in-terest and will enhance national energy se-curity by providing access to the significantgas reserves in Alaska needed to meet theanticipated demand for natural gas.

(2) The Commission issued a certificate ofpublic convenience and necessity for theAlaska Natural Gas Transportation System,which remains in effect.SEC. 703. PURPOSES.

The purposes of this subtitle are—(1) to expedite the approval, construction,

and initial operation of one or more trans-portation systems for the delivery of Alaskanatural gas to the contiguous United States;

(2) to ensure access to such transportationsystems on an equal and nondiscriminatorybasis and to promote competition in the ex-ploration, development and production ofAlaska natural gas; and

(3) to provide federal financial assistanceto any transportation system for the trans-port of Alaska natural gas to the contiguousUnited States, for which an application for acertificate of public convenience and neces-sity is filed with the Commission not laterthan 6 months after the date of enactment ofthis subtitle.SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC

CONVENIENCE AND NECESSITY.(a) AUTHORITY OF THE COMMISSION.—Not-

withstanding the provisions of the AlaskaNatural Gas Transportation Act of 1976 (15U.S.C. 719–719o), the Commission may, pursu-ant to section 7(c) of the Natural Gas Act (15U.S.C. 717f(c)), consider and act on an appli-cation for the issuance of a certificate ofpublic convenience and necessity authorizingthe construction and operation of an Alaskanatural gas transportation project otherthan the Alaska Natural Gas TransportationSystem.

(b) ISSUANCE OF CERTIFICATE.—(1) The Commission shall issue a certifi-

cate of public convenience and necessity au-thorizing the construction and operation ofan Alaska natural gas transportation projectunder this section if the applicant has—

(A) entered into a contract to transportAlaska natural gas through the proposedAlaska natural gas transportation projectfor use in the contiguous United States; and

(B) satisfied the requirements of section7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).

(2) In considering an application under thissection, the Commission shall presumethat—

(A) a public need exists to construct andoperate the proposed Alaska natural gastransportation project; and

(B) sufficient downstream capacity willexist to transport the Alaska natural gasmoving through such project to markets inthe contiguous United States.

(c) EXPEDITED APPROVAL PROCESS.—TheCommission shall issue a final order grant-ing or denying any application for a certifi-cate of public and convenience and necessityunder section 7(c) of the Natural Gas Act (15U.S.C. 717f(c)) and this section not more than60 days after the issuance of the final envi-ronmental impact statement for that projectpursuant to section 705.

(d) REVIEWS AND ACTIONS OF OTHER FED-ERAL AGENCIES.—All reviews conducted andactions taken by any federal officer or agen-cy relating to an Alaska natural gas trans-portation project authorized under this sec-tion shall be expedited, in a manner con-sistent with completion of the necessary re-views and approvals by the deadlines setforth in this subtitle.

(e) REGULATIONS.—The Commission mayissue regulations to carry out the provisionsof this section.SEC. 705. ENVIRONMENTAL REVIEWS.

(a) COMPLIANCE WITH NEPA.—The issuanceof a certificate of public convenience and ne-cessity authorizing the construction and op-eration of any Alaska natural gas transpor-tation project under section 704 shall betreated as a major federal action signifi-cantly affecting the quality of the human en-vironment within the meaning of section102(2)(C) of the National Environmental Pol-icy Act of 1969 (42 U.S.C. 4332(2)(C)).

(b) DESIGNATION OF LEAD AGENCY.—TheCommission shall be the lead agency for pur-poses of complying with the National Envi-ronmental Policy Act of 1969, and shall be re-sponsible for preparing the statement re-quired by section 102(2)(c) of that Act (42U.S.C. 4332(2)(c)) with respect to an Alaskanatural gas transportation project under sec-tion 704. The Commission shall prepare a sin-gle environmental statement under this sec-tion, which shall consolidate the environ-mental reviews of all Federal agencies con-sidering any aspect of the project.

(c) OTHER AGENCIES.—All Federal agenciesconsidering aspects of the construction andoperation of an Alaska natural gas transpor-tation project under section 704 shall cooper-ate with the Commission, and shall complywith deadlines established by the Commis-sion in the preparation of the statementunder this section. The statement preparedunder this section shall be used by all suchagencies to satisfy their responsibilitiesunder section 102(2)(C) of the National Envi-ronmental Policy Act of 1969 (42 U.S.C.4332(2)(C)) with respect to such project.

(d) EXPEDITED PROCESS.—The Commissionshall issue a draft statement under this sec-tion not later than 12 months after the Com-mission determines the application to becomplete and shall issue the final statementnot later than 6 months after the Commis-sion issues the draft statement, unless the

Commission for good cause finds that addi-tional time is needed.

(e) UPDATED ENVIRONMENTAL REVIEWSUNDER ANGTA.—The Secretary of Energyshall require the sponsor of the Alaska Nat-ural Gas Transportation System to submitsuch updated environmental data, reports,permits, and impact analyses as the Sec-retary determines are necessary to developdetailed terms, conditions, and complianceplans required by section 5 of the President’sDecision.SEC. 706. FEDERAL COORDINATOR.

(a) ESTABLISHMENT.—There is establishedas an independent establishment in the exec-utive branch, the Office of the Federal Coor-dinator for Alaska Natural Gas Transpor-tation Projects.

(b) THE FEDERAL COORDINATOR.—The Officeshall be headed by a Federal Coordinator forAlaska Natural Gas Transportation Projects,who shall—

(1) be appointed by the President, by andwith the advice of the Senate,

(2) hold office at the pleasure of the Presi-dent, and

(3) be compensated at the rate prescribedfor level III of the Executive Schedule (5U.S.C. 5314).

(c) DUTIES.—The Federal Coordinator shallbe responsible for—

(1) coordinating the expeditious dischargeof all activities by Federal agencies with re-spect to an Alaska natural gas transpor-tation project; and

(2) ensuring the compliance of Federalagencies with the provisions of this subtitle.SEC. 707. JUDICIAL REVIEW.

(a) EXCLUSIVE JURISDICTION.—The UnitedStates Court of Appeals for the District ofColumbia Circuit shall have exclusive juris-diction to determine—

(1) the validity of any final order or action(including a failure to act) of the Commis-sion under this subtitle;

(2) the constitutionality of any provisionof this subtitle, or any decision made or ac-tion taken thereunder; or

(3) the adequacy of any environmental im-pact statement prepared under the NationalEnvironmental Policy Act of 1969 with re-spect to any action under this subtitle.

(b) DEADLINE FOR FILING CLAIM.—Claimsarising under this subtitle may be broughtnot later than 60 days after the date of thedecision or action giving rise to the claim.SEC. 708. LOAN GUARANTEE.

(a) AUTHORITY.—The Secretary of Energymay guarantee not more than 80 percent ofthe principal of any loan made to the holderof a certificate of public convenience and ne-cessity issued under section 704(b) of this Actor section 9 of the Alaska Natural Gas Trans-portation Act of 1976 (15 U.S.C. 719g) for thepurpose of constructing an Alaska naturalgas transportation project.

(b) CONDITIONS—(1) The Secretary of Energy may not guar-

antee a loan under this section unless theguarantee has filed an application for a cer-tificate of public convenience and necessityunder section 704(b) of this Act or for anamended certificate under section 9 of theAlaska Natural Gas Transportation Act of1976 (15 U.S.C. 719g) with the Commission notlater than 6 months after the date of enact-ment of this subtitle.

(2) A loan guaranteed under this sectionshall be made by a financial institution sub-ject to the examination of the Secretary.

(3) Loan requirements, including term,maximum size, collateral requirements andother features shall be determined by theSecretary.

(c) LIMITATION ON AMOUNT.—Commitmentsto guarantee loans may be made by the Sec-retary of Energy only to the extent that the

CONGRESSIONAL RECORD — SENATES1458 March 5, 2002total loan principal, any part of which isguaranteed, will not exceed $10,000,000,000.

(d) REGULATIONS.—The Secretary of Energymay issue regulations to carry out the provi-sions of this section.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary such sums as may be nec-essary to cover the cost of loan guarantees,as defined by section 502(5) of the FederalCredit Reform Act of 1990 (2 U.S.C. 661a(5)).SEC. 709. STUDY OF ALTERNATIVE MEANS OF

CONSTRUCTION.(a) REQUIREMENT OF STUDY.—If no applica-

tion for the issuance of a certificate of publicconvenience and necessity authorizing theconstruction and operation of an Alaska nat-ural gas transportation project has been filedwith the Commission within 6 months afterthe date of enactment of this title, the Sec-retary of Energy shall conduct a study of al-ternative approaches to the construction andoperation of the project.

(b) SCOPE OF STUDY.—The study shall con-sider the feasibility of establishing a govern-ment corporation to construct an Alaskanatural gas transportation project, and al-ternative means of providing federal financ-ing and ownership (including alternativecombinations of government and private cor-porate ownership) of the project.

(c) CONSULTATION.—In conducting thestudy, the Secretary of Energy shall consultwith the Secretary of the Treasury and theSecretary of the Army (acting through theCommanding General of the Corps of Engi-neers).

(d) REPORT.—If the Secretary of Energy isrequired to conduct a study under subsection(a), he shall submit a report containing theresults of the study, his recommendations,and any proposals for legislation to imple-ment his recommendations to the Congresswithin 6 months after the expiration of theSecretary of Energy’s authority to guar-antee a loan under section 708.SEC. 710. SAVINGS CLAUSE.

Nothing in this subtitle affects any deci-sion, certificate, permit, right-of-way, lease,or other authorization issued under section 9of the Alaska Natural Gas TransportationAct of 1976 (15 U.S.C. 719g).SEC. 711. CLARIFICATION OF AUTHORITY TO

AMEND TERMS AND CONDITIONS TOMEET CURRENT PROJECT REQUIRE-MENTS.

Any Federal officer or agency responsiblefor granting or issuing any certificate, per-mit, right-of-way, lease, or other authoriza-tion under section 9 of the Alaska NaturalGas Transportation Act of 1976 (15 U.S.C.719g) may add to, amend, or abrogate anyterm or condition included in such certifi-cate, permit, right-of-way, lease, or other au-thorization to meet current project require-ments (including the physical design, facili-ties, and tariff specifications), so long assuch action does not compel a change in thebasic nature and general route of the AlaskaNatural Gas Transportation System as des-ignated and described in section 2 of thePresident’s Decision, or would otherwise pre-vent or impair in any significant respect theexpeditious construction and initial oper-ation of such transportation system.SEC. 712. DEFINITIONS.

For purposes of this subtitle:(1) The term ‘‘Alaska natural gas’’ has the

meaning given such term by section 4(1) ofthe Alaska Natural Gas Transportation Actof 1976 (15 U.S.C. 719b(1)).

(2) The term ‘‘Alaska natural gas transpor-tation project’’ means any other natural gaspipeline system that carries Alaska naturalgas from the North Slope of Alaska to theborder between Alaska and Canada (includ-ing related facilities subject to the jurisdic-

tion of the Commission) that is authorizedunder either—

(A) the Alaska Natural Gas TransportationAct of 1976 (15 U.S.C. 719–719o); or

(B) section 704 of this subtitle.(3) The term ‘‘Alaska Natural Gas Trans-

portation System’’ means the Alaska nat-ural gas transportation project authorizedunder the Alaska Natural Gas Transpor-tation Act of 1976 and designated and de-scribed in section 2 of the President’s Deci-sion.

(4) The term ‘‘Commission’’ means theFederal Energy Regulatory Commission.

(5) The term ‘‘natural gas company’’ meansa person engaged in the transportation ofnatural gas in interstate commerce or thesale in interstate commerce of such gas forresale; and

(6) The term ‘‘President’s Decision’’ meansthe Decision and Report to Congress on theAlaska Natural Gas Transportation systemissued by the President on September 22, 1977pursuant to section 7 of the Alaska NaturalGas Transportation Act of 1976 (15 U.S.C.719c) and approved by Public Law 95–158.SEC. 713. SENSE OF THE SENATE.

It is the sense of the Senate that an Alaskanatural gas transportation project will pro-vide significant economic benefits to theUnited States and Canada. In order to maxi-mize those benefits, the Senate urges thesponsors of the pipeline project to makeevery effort to use steel that is manufac-tured or produced in North America and tonegotiate a project labor agreement to expe-dite construction of the pipeline.

Subtitle B—Operating PipelinesSEC. 721. APPLICATION OF HISTORIC PRESERVA-

TION ACT TO OPERATING PIPE-LINES.

Section 7 of the Natural Gas Act (15 U.S.C.717(f)) is amended by adding at the end thefollowing:

‘‘(i)(1) Notwithstanding the National His-toric Preservation Act (16 U.S.C. 470 et seq.),a transportation facility shall not be eligiblefor inclusion on the National Register of His-toric Places unless—

‘‘(A) the Commission has permitted theabandonment of the transportation facilitypursuant to subsection (b), or

‘‘(B) the owner of the facility has givenwritten consent to such eligibility.

‘‘(2) Any transportation facility consideredeligible for inclusion on the National Reg-ister of Historic Places prior to the date ofenactment of this subsection shall no longerbe eligible unless the owner of the facilitygives written consent to such eligibility.’’.SEC. 722. ENVIRONMENTAL REVIEW AND PERMIT-

TING OF NATURAL GAS PIPELINEPROJECTS.

(a) INTERAGENCY REVIEW.—The Chairmanof the Council on Environmental Quality, incoordination with the Federal Energy Regu-latory Commission, shall establish an inter-agency task force to develop an interagencymemorandum of understanding to expeditethe environmental review and permitting ofnatural gas pipeline projects.

(b) MEMBERSHIP OF INTERAGENCY TASKFORCE.—The task force shall consist of—

(1) the Chairman of the Council on Envi-ronmental Quality, who shall serve as theChairman of the interagency task force,

(2) the Chairman of the Federal EnergyRegulatory Commission,

(3) the Director of the Bureau of LandManagement,

(4) the Director of the U.S. Fish and Wild-life Service,

(5) the Commanding General, U.S. ArmyCorps of Engineers,

(6) the Chief of the Forest Service,(7) the Administrator of the Environ-

mental Protection Agency,

(8) the Chairman of the Advisory Councilon Historic Preservation, and

(9) the heads of such other agencies as theChairman of the Council on EnvironmentalQuality and the Chairman of the Federal En-ergy Regulatory Commission deem appro-priate.

(c) MEMORANDUM OF UNDERSTANDING.—Theagencies represented by the members of theinteragency task force shall enter into thememorandum of understanding not laterthan one year after the date of the enact-ment of this section.

DIVISION C—DIVERSIFYING ENERGYDEMAND AND IMPROVING EFFICIENCY

TITLE VIII—FUELS AND VEHICLESSubtitle A—CAFE Standards and Related

MattersSEC. 801. AVERAGE FUEL ECONOMY STANDARDS

FOR PASSENGER AUTOMOBILES ANDLIGHT TRUCKS.

(a) INCREASED STANDARDS.—Section 32902of title 49, United States Code, is amended—

(1) by striking ‘‘NON-PASSENGER AUTO-MOBILES.—’’ in subsection (a) and inserting‘‘PRESCRIPTION OF STANDARDS BY REGULA-TION.—’’;

(2) by striking ‘‘(except passenger auto-mobiles)’’ in subsection (a) and inserting‘‘(except passenger automobiles and lighttrucks)’’; and

(3) by striking subsection (b) and insertingthe following:

‘‘(b) STANDARDS FOR PASSENGER AUTO-MOBILES AND LIGHT TRUCKS.—

‘‘(1) IN GENERAL.—The Secretary of Trans-portation, after consultation with the Ad-ministrator of the Environmental ProtectionAgency, shall prescribe average fuel econ-omy standards for passenger automobilesand light trucks manufactured by a manu-facturer in each model year beginning withmodel year 2007 in order to achieve a com-bined average fuel economy standard for pas-senger automobiles and light trucks formodel year 2015 of at least 35 miles per gal-lon.

‘‘(2) ANNUAL PROGRESS TOWARD STANDARDREQUIRED.—In prescribing average fuel econ-omy standards under paragraph (1), the Sec-retary shall prescribe appropriate annualfuel economy standard increases for pas-senger automobiles and light trucks that—

‘‘(A) increase the applicable average fueleconomy standard ratably over the 9 model-year period beginning with model year 2007and ending with model year 2015;

‘‘(B) require that each manufacturerachieve—

‘‘(i) a fuel economy standard for passengerautomobiles manufactured by that manufac-turer of at least 33.2 miles per gallon no laterthan model year 2012; and

‘‘(ii) a fuel economy standard for lighttrucks manufactured by that manufacturerof at least 26.3 miles per gallon no later thanmodel year 2012; and

‘‘(C) for any model year within that 9model-year period does not result in an aver-age fuel economy standard lower than—

‘‘(i) 27.5 miles per gallon for passengerautomobiles; or

‘‘(ii) 20.7 miles per gallon for light dutytrucks.

‘‘(3) DEADLINE FOR REGULATIONS.—The Sec-retary shall promulgate the regulations re-quired by paragraphs (1) and (2) in final formno later than 18 months after the date of en-actment of the Energy Policy Act of 2002.

‘‘(4) DEFAULT STANDARDS.—If the Secretaryfails to meet the requirement of paragraph(3), the average fuel economy standard forpassenger automobiles and light trucks man-ufactured by a manufacturer in each modelyear beginning with model year 2005 is theaverage fuel economy standard set forth inthe following tables:

CONGRESSIONAL RECORD — SENATE S1459March 5, 2002‘‘For model year The average fuel econ-

omy standard forpassenger auto-mobiles is:

‘‘2007 ............................... 28 miles per gallon‘‘2008 ............................... 28.5 miles per gallon‘‘2009 ............................... 30 miles per gallon‘‘2010 ............................... 31 miles per gallon‘‘2011 ............................... 32.5 miles per gallon‘‘2012 ............................... 34 miles per gallon‘‘2013 ............................... 35 miles per gallon‘‘2014 ............................... 36.5 miles per gallon‘‘2015 and thereafter ....... 38.3 miles per gallon

‘‘For model year The average fuel econ-omy standard forlight trucks is:

‘‘2007 ............................... 21.5 miles per gallon‘‘2008 ............................... 22.5 miles per gallon‘‘2009 ............................... 23.5 miles per gallon‘‘2010 ............................... 24.5 miles per gallon‘‘2011 ............................... 26 miles per gallon‘‘2012 ............................... 27.5 miles per gallon‘‘2013 ............................... 29.5 miles per gallon‘‘2014 ............................... 31 miles per gallon‘‘2015 and thereafter ....... 32 miles per gallon

‘‘(5) COMBINED STANDARD FOR MODEL YEARSAFTER MODEL YEAR 2012.—Unless the defaultstandards under paragraph (4) are in effect,for model years after model year 2012, theSecretary may by rulemaking establish—

‘‘(A) separate average fuel economy stand-ards for passenger automobiles and lighttrucks manufactured by a manufacturer; or

‘‘(B) a combined average fuel economystandard for passenger automobiles and lighttrucks manufactured by a manufacturer.’’;

(4) by striking ‘‘the standard’’ in sub-section (c)(1) and inserting ‘‘a standard’’;

(5) by striking the first and last sentencesof subsection (c)(2); and

(6) by striking ‘‘(and submit the amend-ment to Congress when required under sub-section (c)(2) of this section)’’ in subsection(g).

(b) DEFINITION OF LIGHT TRUCKS.—(1) IN GENERAL.—Section 32901(a) of title 49,

United States Code, is amended by adding atthe end the following:

‘‘(17) ‘light truck’ means an automobilethat the Secretary decides by regulation—

‘‘(A) is manufactured primarily for trans-porting not more than 10 individuals;

‘‘(B) is rated at not more than 10,000pounds gross vehicle weight;

‘‘(C) is not a passenger automobile; and‘‘(D) does not fall within the exceptions

from the definition of ‘medium duty pas-senger vehicle’ under section 86.1803–01 oftitle 40, Code of Federal Regulations.’’.

(2) DEADLINE FOR REGULATIONS.—The Sec-retary of Transportation—

(A) shall issue proposed regulations imple-menting the amendment made by paragraph(1) not later than 1 year after the date of theenactment of this Act; and

(B) shall issue final regulations imple-menting the amendment not later than 18months after the date of the enactment ofthis Act.

(3) EFFECTIVE DATE.—Regulations pre-scribed under paragraph (1) shall apply be-ginning with model year 2007.

(c) APPLICABILITY OF EXISTING STAND-ARDS.—This section does not affect the appli-cation of section 32902 of title 49, UnitedStates Code, to passenger automobiles ornon-passenger automobiles manufactured be-fore model year 2005.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Transportation to carry outthe provisions of chapter 329 of title 49,United States Code, $25,000,000 for each of fis-cal years 2003 through 2015.SEC. 802. FUEL ECONOMY TRUTH IN TESTING.

(a) IN GENERAL.—Section 32907 of title 49,United States Code, is amended by adding atthe end the following:

‘‘(c) IMPROVED TESTING PROCEDURES.—‘‘(1) IN GENERAL.—The Administrator of the

Environmental Protection Agency shallconduct—

‘‘(A) an ongoing examination of the accu-racy of fuel economy testing of passengerautomobiles and light trucks by the Admin-istrator performed in accordance with theprocedures in effect as of the date of enact-ment of the Energy Policy Act of 2002 for thepurpose of determining whether, and to whatextent, the fuel economy of passenger auto-mobiles and light trucks as tested by the Ad-ministrator differs from the fuel economyreasonably to be expected from those auto-mobiles and trucks when driven by averagedrivers under average driving conditions; and

‘‘(B) an assessment of the extent to whichfuel economy changes during the life of pas-senger automobiles and light trucks.’’.

‘‘(2) REPORT.—The Administrator of theEnvironmental Protection Agency shall,within 12 months after the date of enactmentof the Energy Policy Act of 2002 and annu-ally thereafter, submit to the Committee onCommerce, Science, and Transportation ofthe Senate and the Committee on Commerceof the House of Representatives a report onthe results of the study required by para-graph (1). The report shall include—

‘‘(A) a comparison between—‘‘(i) fuel economy measured, for each

model in the applicable model year, throughtesting procedures in effect as of the date ofenactment of the Energy Policy Act of 2002;and

‘‘(ii) fuel economy of such passenger auto-mobiles and light trucks during actual on-road performance, as determined under thatparagraph;

‘‘(B) a statement of the percentage dif-ference, if any, between actual on-road fueleconomy and fuel economy measured by testprocedures of the Environmental ProtectionAdministration; and

‘‘(C) a plan to reduce, by model year 2015,the percentage difference identified undersubparagraph (B) by using uniform testmethods that reflect actual on-the-road fueleconomy consumers experience under nor-mal driving conditions to no greater than 5percent.’’.SEC. 803. ENSURING SAFETY OF PASSENGER

AUTOMOBILES AND LIGHT TRUCKS.(a) IN GENERAL.—The Secretary of Trans-

portation shall exercise such authorityunder Federal law as the Secretary may haveto ensure that—

(1) passenger automobiles and light trucks(as those terms are defined in section 32901 oftitle 49, United States Code) are safe;

(2) progress is made in improving the over-all safety of passenger automobiles and lighttrucks; and

(3) progress is made in maximizing UnitedStates employment.

(b) IMPROVED CRASHWORTHINESS.—Sub-chapter II of chapter 301 of title 49, UnitedStates Code, is amended by adding at the endthe following:‘‘§ 30128. Improved crashworthiness

‘‘(a) ROLLOVERS.—Within 3 years after thedate of enactment of the Energy Policy Actof 2002, the Secretary of Transportation,through the National Highway Traffic SafetyAdministration, shall prescribe a motor ve-hicle safety standard under this chapter forrollover crashworthiness standards thatincludes—

‘‘(1) dynamic roof crush standards;‘‘(2) improved seat structure and safety

belt design;‘‘(3) side impact head protection airbags;

and‘‘(4) roof injury protection measures.‘‘(b) HEAVY VEHICLE HARM REDUCTION COM-

PATIBILITY STANDARD.—‘‘(1) Within 3 years after the date of enact-

ment of the Energy Policy Act of 2002, theSecretary, through the National HighwayTraffic Safety Administration, shall pre-

scribe a Federal motor vehicle safety stand-ard under this chapter that will reduce theaggressivity of light trucks by 30 percent,using a baseline of model year 2002, and willimprove vehicle compatibility in collisionsbetween light trucks and cars, in order toprotect against unnecessary death and in-jury.

‘‘(2) The Secretary should review the effec-tiveness of this standard every five years fol-lowing final issuance of the standard andshall issue, through the National HighwayTraffic Safety Administration, upgrades tothe standard to reduce fatalities and injuriesrelated to vehicle compatibility and lighttruck aggressivity.’’.

(c) CONFORMING AMENDMENT.—The chapteranalysis for chapter 301 of title 49, UnitedStates Code, is amended by inserting afterthe item relating to section 30127 the fol-lowing: ‘‘30128. Improved crashworthiness’’.SEC. 804. HIGH OCCUPANCY VEHICLE EXCEP-

TION.(a) IN GENERAL.—Notwithstanding section

102(a)(1) of title 23, United States Code, aState may, for the purpose of promoting en-ergy conservation, permit a vehicle withfewer than 2 occupants to operate in high oc-cupancy vehicle lanes if it is a hybrid vehicleor is certified by the Secretary of Transpor-tation, after consultation with the Adminis-trator of the Environmental ProtectionAgency, to be a vehicle that runs only on analternative fuel.

(b) HYBRID VEHICLE DEFINED.—In this sec-tion, the term ‘‘hybrid vehicle’’ means amotor vehicle—

(1) which—(A) draws propulsion energy from onboard

sources of stored energy which are both—(i) an internal combustion or heat engine

using combustible fuel; and(ii) a rechargeable energy storage system;

or(B) recovers kinetic energy through regen-

erative braking and provides at least 13 per-cent maximum power from the electricalstorage device;

(2) which, in the case of a passenger auto-mobile or light truck—

(A) for 2002 and later model vehicles, hasreceived a certificate of conformity undersection 206 of the Clean Air Act (42 U.S.C.7525) and meets or exceeds the equivalentqualifying California low emission vehiclestandard under section 243(e)(2) of the CleanAir Act (42 U.S.C. 7583(e)(2)) for that makeand model year; and

(B) for 2004 and later model vehicles, hasreceived a certificate that such vehiclemeets the Tier II emission level establishedin regulations prescribed by the Adminis-trator of the Environmental ProtectionAgency under section 202(i) of the Clean AirAct (42 U.S.C. 7521(i)) for that make andmodel year vehicle; and

(3) which is made by a manufacturer.(c) ALTERNATIVE FUEL DEFINED.—In this

section, the term ‘‘alternative fuel’’ has themeaning such term has under section 301(2)of the Energy Policy Act of 1992 (42 U.S.C.13211(2)).SEC. 805. CREDIT TRADING PROGRAM.

(a) IN GENERAL.—Section 32903 of title 49,United States Code, is amended by adding atthe end the following:

‘‘(g) VEHICLE CREDIT TRADING SYSTEM.—‘‘(1) IN GENERAL.—The Secretary of Trans-

portation, with technical assistance from theAdministrator of the Environmental Protec-tion Agency, may establish a system underwhich manufacturers with credits under thissection may sell those credits to other man-ufacturers or transfer them among a manu-facturer’s fleets.

‘‘(2) PURPOSES.—The purposes of the sys-tem are:

CONGRESSIONAL RECORD — SENATES1460 March 5, 2002‘‘(A) Reducing the adverse effects of ineffi-

cient consumption of fuel by passenger auto-mobiles and light trucks.

‘‘(B) Accelerating introduction of advancedtechnology vehicles into use in the UnitedStates.

‘‘(C) Encouraging manufacturers to exceedthe average fuel economy standards estab-lished by section 32902.

‘‘(D) Reducing emissions of carbon dioxideby passenger automobiles and light trucks.

‘‘(E) Decreasing the United States’ con-sumption of oil as vehicular fuel.

‘‘(F) Providing manufacturers flexibility inmeeting the average fuel economy standardsestablished by section 32902.

‘‘(G) Increasing consumer choice.‘‘(3) PROGRAM REQUIREMENTS.—The system

established under paragraph (1) shall—‘‘(A) make only credits accrued after the

date of enactment of the Energy Policy Actof 2002 eligible for transfer or sale;

‘‘(B) use techniques and methods that min-imize reporting costs for manufacturers;

‘‘(C) provide for monitoring andverification of credit purchases;

‘‘(D) require participating manufacturersto report monthly sales of vehicles to theAdministrator of the Environmental Protec-tion Agency; and

‘‘(E) make manufacturer-specific credit,transfer, sale, and purchase information pub-licly available through annual reports andmonthly posting of transactions on theInternet.

‘‘(4) CREDITS MAY BE TRADED BETWEEN PAS-SENGER AUTOMOBILES AND LIGHT TRUCKS ANDBETWEEN DOMESTIC AND IMPORT FLEETS.—Thesystem shall provide that credits earnedunder this section—

‘‘(A) with respect to passenger automobilesmay be applied with respect to light trucks;

‘‘(B) with respect to light trucks may beapplied with respect to passenger auto-mobiles;

‘‘(C) with respect to passenger automobilesmanufactured domestically may be appliedwith respect to passenger automobiles notmanufactured domestically; and

‘‘(D) with respect to passenger automobilesnot manufactured domestically may be ap-plied with respect to passenger automobilesmanufactured domestically.

‘‘(5) REPORT.—The Secretary and the Ad-ministrator shall jointly submit an annualreport to the Congress—

‘‘(A) describing the effectiveness of thecredits provided by this subsection achievingthe purposes described in paragraph (2); and

‘‘(B) setting forth a full accounting of allcredits, transfers, sales, and purchases forthe most recent model year for which data isavailable.’’.

(b) NO CARRYBACK OF CREDITS.—Section32903(a) of title 49, United States Code, isamended—

(1) by striking ‘‘applied to—’’ and inserting‘‘applied—’’;

(2) by inserting ‘‘for model years beforemodel year 2006, to’’ in paragraph (1) before‘‘any’’;

(3) by striking ‘‘and’’ after the semicolonin paragraph (1);

(4) by striking ‘‘earned.’’ in paragraph (2)and inserting ‘‘earned; and’’; and

(5) by adding at the end the following:‘‘(3) for model years after 2001, in accord-

ance with the vehicle credit trading systemestablished under subsection (g), to any ofthe 3 consecutive model years immediatelyafter the model year for which the credit wasearned.’’.

(c) USE OF CREDIT VALUE TO CALCULATECIVIL PENALTY.—Section 32912(b) of title 49,United States Code, is amended—

(1) by inserting ‘‘and is unable to purchasesufficient credits under section 32903(g) to

comply with the standard’’ after ‘‘title’’ thefirst place it appears; and

(2) by striking all after ‘‘penalty’’ and in-serting ‘‘of the greater of—

‘‘(1) an amount determined bymultiplying—

‘‘(A) the number of credits necessary to en-able the manufacturer to meet that stand-ard; by

‘‘(B) 1.5 times the previous year’s weightedaverage open market price of a credit undersection 32903(g); or

‘‘(2) $5 multiplied by each 0.1 of a mile agallon by which the applicable average fueleconomy standard under section 32902 ex-ceeds the average fuel economy—

‘‘(A) calculated under section 32904(a)(1)(A)or (B) for automobiles to which the standardapplied manufactured by the manufacturerduring the model year;

‘‘(B) multiplied by the number of thoseautomobiles; and

‘‘(C) reduced by the credits available to themanufacturer under section 32903 for themodel year.’’.

(d) CONFORMING AMENDMENTS.—Section32903 of title 49, United States Code, isamended—

(1) by inserting ‘‘or light trucks’’ after‘‘passenger automobiles’’ each place it ap-pears in subsection (c);

(2) by inserting after ‘‘manufacturer.’’ insubsection (d) ‘‘Credits earned with respectto passenger automobiles may be used withrespect to nonpassenger automobiles andlight duty trucks.’’; and

(3) by inserting after ‘‘manufacturer.’’ insubsection (e) ‘‘Credits earned with respectto non-passenger automobiles or light trucksmay be used with respect to passenger auto-mobiles.’’.SEC. 806. GREEN LABELS FOR FUEL ECONOMY.

Section 32908 of title 49, United StatesCode, is amended—

(1) by striking ‘‘title.’’ in subsection (a)(1)and inserting ‘‘title, and a light truck (as de-fined in section 32901(17) after model year2005; and’’;

(2) by redesignating subparagraph (F) ofsubsection (b)(1) as subparagraph (H), and in-serting after subparagraph (E) the following:

‘‘(F) a label (or a logo imprinted on a labelrequired by this paragraph) that—

‘‘(i) reflects an automobile’s performanceon the basis of criteria developed by the Ad-ministrator to reflect the fuel economy andgreenhouse gas and other emissions con-sequences of operating the automobile overits likely useful life;

‘‘(ii) permits consumers to compare per-formance results under clause (i) among allpassenger automobiles and light duty trucks(as defined in section 32901) and with vehiclesin the vehicle class to which it belongs; and

‘‘(iii) is designed to encourage the manu-facture and sale of passenger automobilesand light trucks that meet or exceed applica-ble fuel economy standards under section32902.

‘‘(G) a fuelstar under paragraph (5).’’; and(3) by adding at the end of subsection (b)

the following:‘‘(4) GREEN LABEL PROGRAM.—‘‘(A) MARKETING ANALYSIS.—Within 2 years

after the date of enactment of the EnergyPolicy Act of 2002, the Administrator shallcomplete a study of social marketing strate-gies with the goal of maximizing consumerunderstanding of point-of-sale labels or logosdescribed in paragraph (1)(F).

‘‘(B) CRITERIA.—In developing criteria forthe label or logo, the Administrator shallalso consider, among others as appropriate,the following factors:

‘‘(i) The amount of greenhouse gases thatwill be emitted over the life-cycle of theautomobile.

‘‘(ii) The fuel economy of the automobile.‘‘(iii) The recyclability of the automobile.‘‘(iv) Any other pollutants or harmful by-

products related to the automobile, whichmay include those generated during manu-facture of the automobile, those issued dur-ing use of the automobile, or those generatedafter the automobile ceases to be operated.

‘‘(5) FUELSTAR PROGRAM.—The Secretary,in consultation with the Administrator,shall establish a program, to be known asthe ‘fuelstar’ program, under which starsshall be imprinted on or attached to thelabel required by paragraph (1) that will,consistent with the findings of the mar-keting analysis required under subsection4(A), provide consumer incentives to pur-chase vehicles that exceed the applicablefuel economy standard.SEC. 807. LIGHT TRUCK CHALLENGE.

(a) IN GENERAL.—The Secretary of Trans-portation shall conduct an open competitionfor a project to demonstrate the feasibilityof multiple fuel hybrid electric vehiclepowertrains in sport utility vehicles andlight trucks. The Secretary shall execute acontract with the entity determined by theSecretary to be the winner of the competi-tion under which the Secretary will provide$10,000,000 to that entity in each of fiscalyears 2003 and 2004 to carry out the project.

(b) PROJECT REQUIREMENTS.—Under thecontract, the Secretary shall require the en-tity to which the contract is awarded to—

(1) select a current model year productionvehicle;

(2) modify that vehicle so that it—(A) meets all existing vehicle performance

characteristics of the sport utility vehicle orlight truck selected for the project;

(B) improves the vehicle’s fuel economyrating by 50 percent or more (as measured bygasoline consumption); and

(3) meet the requirements of paragraph (2)in such a way that incorporation of themodification in the manufacturer’s produc-tion process would not increase the vehicle’sincremental production costs by more than10 percent.

(c) ELIGIBLE ENTRANTS.—The competitionconducted by the Secretary shall be open toany entity, or consortium of nongovern-mental entities, educational institutions,and not-for-profit organizations, that—

(1) has the technical capability and re-sources needed to complete the project suc-cessfully; and

(2) has sufficient financial resources in ad-dition to the contract amount, if necessary,to complete the contract successfully.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Transportation $10,000,000for each of fiscal years 2003 and 2004 to carryout this section.SEC. 808. SECRETARY OF TRANSPORTATION TO

CERTIFY BENEFITS.Beginning with model year 2005, the Sec-

retary of Transportation, in consultationwith the Administrator of the Environ-mental Protection Agency, shall determineand certify annually to the Congress—

(1) the annual reduction in United Statesconsumption of petroleum used for vehiclefuel, and

(2) the annual reduction in greenhouse gasemissions,properly attributable to the implementationof the average fuel economy standards im-posed under section 32902 of title 49, UnitedStates Code, as a result of the amendmentsmade by this Act.SEC. 809. DEPARTMENT OF TRANSPORTATION

ENGINEERING AWARD PROGRAM.(a) ENGINEERING TEAM AWARDS.—The Sec-

retary of Transportation shall establish anengineering award program to recognize the

CONGRESSIONAL RECORD — SENATE S1461March 5, 2002engineering team of any manufacturer ofpassenger automobiles or light trucks (assuch terms are defined in section 32901 oftitle 49, United States Code) whose work di-rectly results in production models of—

(1) the first large sport utility vehicle, van,or light truck to achieve a fuel economy rat-ing of 30 miles per gallon under section 32902of such title;

(2) the first mid-sized sport utility vehicle,van, or light truck to achieve a fuel economyrating of 35 miles per gallon under section32902 of such title; and

(3) the first small sport utility vehicle,van, or light truck to achieve a fuel economyrating of 40 miles per gallon under section32902 of such title.

(b) MANUFACTURER’S AWARD.—The Sec-retary of Transportation shall establish anOil Independence Award to recognize thefirst manufacturer of domestically-manufac-tured (within the meaning of section 32903 oftitle 49, United States Code) passenger auto-mobiles and light trucks to achieve a com-bined fuel economy rating of 37 miles pergallon under section 32902 of such title.

(c) REQUIREMENTS FOR PARTICIPATION INENGINEERING TEAM AWARDS PROGRAM.—In es-tablishing the engineering team awards pro-gram under subsection (a), the Secretaryshall establish eligibility requirements thatinclude—

(1) a requirement that the vehicle, van, ortruck be domestically-manufactured ormanufacturable (if a prototype) within themeaning of section 32903 of title 49, UnitedStates Code;

(2) a requirement that the vehicle, van, ortruck meet all applicable Federal standardsfor emissions and safety (except that crashtesting shall not be required for a proto-type); and

(3) such additional requirements as theSecretary may require in order to carry outthe program.

(d) AMOUNT OF PRIZE.—The Secretary shallaward a prize of not less than $10,000 to eachengineering team determined by the Sec-retary to have successfully met the require-ments of subsection (a)(1), (2), or (3). TheSecretary shall provide for recognition ofany manufacturer to have met the require-ments of subsection (b) with appropriateceremonies and activities, and may provide amonetary award in an amount determined bythe Secretary to be appropriate.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Transportation such sumsas may be necessary to carry out this sec-tion.

SEC. 810. COOPERATIVE TECHNOLOGY AGREE-MENTS.

(a) IN GENERAL.—The Secretary of Trans-portation, in cooperation with the Adminis-trator of the Environmental ProtectionAgency, may execute a cooperative researchand development agreement with any manu-facturer of passenger automobiles or lighttrucks (as those terms are defined in section32901 of title 49, United States Code) to im-plement, utilize, and incorporate in produc-tion government-developed or jointly-devel-oped fuel economy technology that will re-sult in improvements in the average fueleconomy of any class of vehicles produced bythat manufacturer of at least 55 percentgreater than the average fuel economy ofthat class of vehicles for model year 2000.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Transportation and the Ad-ministrator of the Environmental ProtectionAgency such sums as may be necessary tocarry out this section.

Subtitle B—Alternative and Renewable FuelsSEC. 811. INCREASED USE OF ALTERNATIVE

FUELS BY FEDERAL FLEETS.(a) REQUIREMENT TO USE ALTERNATIVE

FUELS.—Section 400AA(a)(3)(E) of the EnergyPolicy and Conservation Act (42 U.S.C.6374(a)(3)(E)) is amended to read as follows:

‘‘(E) Dual fueled vehicles acquired pursu-ant to this section shall be operated on alter-native fuels. If the Secretary determinesthat all dual fueled vehicles acquired pursu-ant to this section cannot operate on alter-native fuels at all times, he may waive therequirement in part, but only to the extentthat:

‘‘(i) Not later than September 30, 2003, notless than 50 percent of the total annual vol-ume of fuel used in such dual fueled vehiclesshall be from alternative fuels.

‘‘(ii) Not later than September 30, 2005, notless than 75 percent of the total annual vol-ume of fuel used in such dual fueled vehiclesshall be from alternative fuels.’’.

(b) DEFINITION OF ‘‘DEDICATED VEHICLE’’.—Section 400AA(g)(4)(B) of the Energy Policyand Conservation Act (42 U.S.C. 6374(g)(4)(B))is amended by inserting after ‘‘solely on al-ternative fuel’’ the following: ‘‘, including athree-wheeled enclosed electric vehicle hav-ing a vehicle identification number’’.SEC. 812. EXCEPTION TO HOV PASSENGER RE-

QUIREMENTS FOR ALTERNATIVEFUEL VEHICLES.

Section 102(a)(1) of title 23, United StatesCode, is amended by inserting after ‘‘re-quired’’ the following: ‘‘(unless, in the discre-tion of the State transportation department,the vehicle is being operated on, or is beingfueled by, an alternative fuel (as defined insection 301(2) of the Energy Policy Act of1992 (42 U.S.C. 13211(2)))’’.SEC. 813. DATA COLLECTION.

Section 205 of the Department of EnergyOrganization Act (42 U.S.C. 7135) is amendedby adding at the end the following:

‘‘(m) In order to improve the ability toevaluate the effectiveness of the Nation’s re-newable fuels mandate, the Administratorshall conduct and publish the results of asurvey of renewable fuels consumption in themotor vehicle fuels market in the UnitedStates monthly, and in a manner designed toprotect the confidentiality of individual re-sponses. In conducting the survey, the Ad-ministrator shall collect information bothon a national basis and a regional basis,including—

(1) the quantity of renewable fuels pro-duced;

(2) the cost of production;(3) the cost of blending and marketing;(4) the quantity of renewable fuels con-

sumed;(5) the quantity of renewable fuels im-

ported; and(6) market price data.

SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.(a) ESTABLISHMENT.—The Secretary of En-

ergy and the Secretary of Transportationshall jointly establish a pilot program forawarding grants on a competitive basis to el-igible entities for the demonstration andcommercial application of alternative fuelschool buses and ultra-low sulfur dieselschool buses.

(b) REQUIREMENTS.—Not later than 3months after the date of the enactment ofthis Act, the Secretary shall establish andpublish in the Federal register grant require-ments on eligibility for assistance, and onimplementation of the program establishedunder subsection (a), including certificationrequirements to ensure compliance with thissubtitle.

(c) SOLICITATION.—Not later than 6 monthsafter the date of the enactment of this Act,the Secretary shall solicit proposals forgrants under this section.

(d) ELIGIBLE RECIPIENTS.—A grant shall beawarded under this section only—

(1) to a local governmental entity respon-sible for providing school bus service for oneor more public school systems; or

(2) jointly to an entity described in para-graph (1) and a contracting entity that pro-vides school bus service to the public schoolsystem or systems.

(e) TYPES OF GRANTS.—(1) IN GENERAL.—Grants under this section

shall be for the demonstration and commer-cial application of technologies to facilitatethe use of alternative fuel school buses andultra-low sulfur diesel school buses insteadof buses manufactured before model year 1977and diesel-powered buses manufactured be-fore model year 1991.

(2) NO ECONOMIC BENEFIT.—Other than thereceipt of the grant, a recipient of a grantunder this section may not receive any eco-nomic benefit in connection with the receiptof the grant.

(3) PRIORITY OF GRANT APPLICATIONS.—TheSecretary shall give priority to awardinggrants to applicants who can demonstratethe use of alternative fuel buses and ultra-low sulfur diesel school buses instead ofbuses manufactured before model year 1977.

(f) CONDITIONS OF GRANT.—A grant pro-vided under this section shall include the fol-lowing conditions:

(1) All buses acquired with funds providedunder the grant shall be operated as part ofthe school bus fleet for which the grant wasmade for a minimum of 5 years.

(2) Funds provided under the grant mayonly be used—

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

(B) to provide—(i) up to 10 percent of the price of the alter-

native fuel buses acquired, for necessary al-ternative fuel infrastructure if the infra-structure will only be available to the grantrecipient; and

(ii) up to 15 percent of the price of the al-ternative fuel buses acquired, for necessaryalternative fuel infrastructure if the infra-structure will be available to the grant re-cipient and to other bus fleets.

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

(4) In the case of a grant recipient receiv-ing a grant to demonstrate ultra-low sulfurdiesel school buses, the grant recipient shallbe required to provide documentation to thesatisfaction of the Secretary that diesel fuelcontaining sulfur at not more than 15 partsper million is available for carrying out thepurposes of the grant, and a commitment bythe applicant to use such fuel in carrying outthe purposes of the grant.

(g) BUSES.—Funding under a grant madeunder this section may only be used to dem-onstrate the use of new alternative fuelschool buses or ultra-low sulfur diesel schoolbuses that—

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

(2) are powered by a heavy duty engine;(3) in the case of alternative fuel school

buses, emit not more than—(A) for buses manufactured in model year

2002, 2.5 grams per brake horsepower-hour ofnonmethane hydrocarbons and oxides of ni-trogen and .01 grams per brake horsepower-hour of particulate matter; and

(B) for buses manufactured in model years2003 through 2006, 1.8 grams per brake horse-power-hour of nonmethane hydrocarbons andoxides of nitrogen and .01 grams per brakehorsepower-hour of particulate matter; and

CONGRESSIONAL RECORD — SENATES1462 March 5, 2002(4) in the case of ultra-low sulfur diesel

school buses, emit not more than the lesserof—

(A) the emissions of nonmethane hydro-carbons, oxides of nitrogen, and particulatematter of the best performing technology ofthe same class of ultra-low sulfur dieselschool buses commercially available at thetime the grant is made; or

(B) the applicable following amounts—(i) for buses manufactured in model year

2002 or 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams perbrake horsepower-hour of particulate mat-ter; and

(ii) for buses manufactured in model years2004 through 2006, 2.5 grams per brake horse-power-hour of nonmethane hydrocarbons andoxides of nitrogen and .01 grams per brakehorsepower-hour of particulate matter.

(h) DEPLOYMENT AND DISTRIBUTION.—TheSecretary shall seek to the maximum extentpracticable to achieve nationwide deploy-ment of alternative fuel school busesthrough the program under this section, andshall ensure a broad geographic distributionof grant awards, with a goal of no State re-ceiving more than 10 percent of the grantfunding made available under this sectionfor a fiscal year.

(i) LIMIT ON FUNDING.—The Secretary shallprovide not less than 20 percent and notmore than 25 percent of the grant fundingmade available under this section for any fis-cal year for the acquisition of ultra-low sul-fur diesel school buses.

(j) DEFINITIONS.—For purposes of thissection—

(1) the term ‘‘alternative fuel school bus’’means a bus powered substantially by elec-tricity (including electricity supplied by afuel cell), or by liquefied natural gas, com-pressed natural gas, liquefied petroleum gas,hydrogen, propane, or methanol or ethanolat no less than 85 percent by volume; and

(2) the term ‘‘ultra-low sulfur diesel schoolbus’’ means a school bus powered by dieselfuel which contains sulfur at not more than15 parts per million.SEC. 815. FUEL CELL BUS DEVELOPMENT AND

DEMONSTRATION PROGRAM.(a) ESTABLISHMENT OF PROGRAM.—The Sec-

retary shall establish a program for enteringinto cooperative agreements with privatesector fuel cell bus developers for the devel-opment of fuel cell-powered school buses,and subsequently with not less than 2 unitsof local government using natural gas-pow-ered school buses and such private sectorfuel cell bus developers to demonstrate theuse of fuel cell-powered school buses.

(b) COST SHARING.—The non-Federal con-tribution for activities funded under this sec-tion shall be not less than—

(1) 20 percent for fuel infrastructure devel-opment activities; and

(2) 50 percent for demonstration activitiesand for development activities not describedin paragraph (1).

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

(d) REPORTS TO CONGRESS.—Not later than3 years after the date of the enactment ofthis Act, and not later than October 1, 2006,the Secretary shall transmit to the appro-priate congressional committees a reportthat—

(1) evaluates the process of converting nat-ural gas infrastructure to accommodate fuelcell-powered school buses; and

(2) assesses the results of the developmentand demonstration program under this sec-tion.SEC. 816. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Secretary of Energy for carrying out sec-

tions 814 and 815, to remain available untilexpended—

(1) $50,000,000 for fiscal year 2003;(2) $60,000,000 for fiscal year 2004;(3) $70,000,000 for fiscal year 2005; and(4) $80,000,000 for fiscal year 2006.

SEC. 817. BIODIESEL FUEL USE CREDIT.Section 312(c) of the Energy Policy Act of

1992 (42 U.S.C. 13220(c)) is amended—(1) by striking ‘‘NOT’’ in the subsection

heading; and(2) by striking ‘‘not’’.

SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.Section 301 of the Energy Policy Act of

1992 (42 U.S.C. 13211) is amended—(1) by striking ‘‘or a dual fueled vehicle’’

and inserting ‘‘, a dual fueled vehicle, or aneighborhood electric vehicle’’;

(2) by striking ‘‘and’’ at the end of para-graph (13);

(3) by striking the period at the end of sub-paragraph (14) and inserting ‘‘; and’’; and

(4) by adding at the end the following:‘‘(15) the term ‘neighborhood electric vehi-

cle’ means a motor vehicle that qualifies asboth—

‘‘(A) a low-speed vehicle, as such term isdefined in section 571.3(b) of title 49, Code ofFederal Regulations; and

‘‘(B) a zero-emission vehicle, as such termis defined in section 86.1703–99 of title 40,Code of Federal Regulations.’’.SEC. 819. RENEWABLE CONTENT OF MOTOR VE-

HICLE FUEL.(a) IN GENERAL.—Section 211 of the Clean

Air Act (42 U.S.C. 7545) is amended—(1) by redesignating subsection (o) as sub-

section (q); and(2) by inserting after subsection (n) the fol-

lowing:‘‘(o) RENEWABLE FUEL PROGRAM.—‘‘(1) DEFINITIONS.—In this section:‘‘(A) CELLULOSIC BIOMASS ETHANOL.—The

term ‘cellulosic biomass ethanol’ means eth-anol derived from any lignocellulosic orhemicellulosic matter that is available on arenewable or recurring basis, including—

‘‘(i) dedicated energy crops and trees;‘‘(ii) wood and wood residues;‘‘(iii) plants;‘‘(iv) grasses;‘‘(v) agricultural commodities and resi-

dues;‘‘(vi) fibers;‘‘(vii) animal wastes and other waste mate-

rials; and‘‘(viii) municipal solid waste.‘‘(B) RENEWABLE FUEL.—‘‘(i) IN GENERAL.—The term ‘renewable

fuel’ means motor vehicle fuel that—‘‘(I)(aa) is produced from grain, starch, oil-

seeds, or other biomass; or‘‘(bb) is natural gas produced from a biogas

source, including a landfill, sewage wastetreatment plant, feedlot, or other placewhere decaying organic material is found;and

‘‘(II) is used to replace or reduce the quan-tity of fossil fuel present in a fuel mixtureused to operate a motor vehicle.

‘‘(ii) INCLUSION.—The term ‘renewable fuel’includes cellulosic biomass ethanol and bio-diesel (as defined in section 312(f) of the En-ergy Policy Act of 1992 (42 U.S.C. 13220(f)).

‘‘(C) SMALL REFINERY.—The term ‘small re-finery’ means a refinery for which averageaggregate daily crude oil throughput for thecalendar year (as determined by dividing theaggregate throughput for the calendar yearby the number of days in the calendar year)does not exceed 75,000 barrels.

‘‘(2) RENEWABLE FUEL PROGRAM.—‘‘(A) IN GENERAL.—Not later than one year

from enactment of this provision, the Ad-ministrator shall promulgate regulations en-suring that gasoline sold or dispensed to con-sumers in the United States, on an annual

average basis, contains the applicable vol-ume of renewable fuel as specified in sub-paragraph (B). Regardless of the date of pro-mulgation, such regulations shall containcompliance provisions for refiners, blenders,distributors and importers, as appropriate,to ensure that the requirements of this sec-tion are met, but shall not restrict where re-newables can be used, or impose any per-gal-lon obligation for the use of renewables. Ifthe Administrator does not promulgate suchregulations, the applicable percentage, on avolume percentage of gasoline basis, shall be1.62 in 2004.

‘‘(B) APPLICABLE VOLUME.—(i) CALENDAR YEARS 2004 THROUGH 2012.—For

the purpose of subparagraph (A), the applica-ble volume for any of calendar years 2004through 2012 shall be determined in accord-ance with the following table:

Applicable volume of renewable fuel‘‘Calendar year: (In billions of

gallons)2004 ......................................... 2.3

2005 ......................................... 2.6

2006 ......................................... 2.9

2007 ......................................... 3.2

2008 ......................................... 3.5

2009 ......................................... 3.9

2010 ......................................... 4.3

2011 ......................................... 4.7

2012 ......................................... 5.0.‘‘(ii) CALENDAR YEAR 2013 AND THERE-

AFTER.—For the purpose of subparagraph (A),the applicable volume for calendar year 2013and each calendar year thereafter shall beequal to the product obtained bymultiplying—

‘‘(I) the number of gallons of gasoline thatthe Administrator estimates will be sold orintroduced into commerce in the calendaryear; and

‘‘(II) the ratio that—‘‘(aa) 5.0 billion gallons of renewable fuels;

bears to‘‘(bb) the number of gallons of gasoline

sold or introduced into commerce in cal-endar year 2012.

‘‘(3) APPLICABLE PERCENTAGES.—Not laterthan October 31 of each calendar year,through 2011, the Administrator of the En-ergy Information Administration shall pro-vide the Administrator an estimate of thevolumes of gasoline sales in the UnitedStates for the coming calendar year. Basedon such estimates, the Administrator shallby November 30 of each calendar year,through 2011, determine and publish in theFederal Register, the renewable fuel obliga-tion, on a volume percentage of gasolinebasis, applicable to refiners, blenders, dis-tributors and importers, as appropriate, forthe coming calendar year, to ensure that therequirements of paragraph (2) are met. Foreach calendar year, the Administrator shallestablish a single applicable percentage thatapplies to all parties, and make provision toavoid redundant obligations. In determiningthe applicable percentages, the Adminis-trator shall make adjustments to accountfor the use of renewable fuels by exemptsmall refiners during the previous year.

‘‘(4) CELLULOSIC BIOMASS ETHANOL.—Forthe purpose of paragraph (2), 1 gallon of cel-lulosic biomass ethanol shall be consideredto be the equivalent of 1.5 gallon of renew-able fuel.

‘‘(5) CREDIT PROGRAM.—

CONGRESSIONAL RECORD — SENATE S1463March 5, 2002‘‘(A) IN GENERAL.—The regulations promul-

gated to carry out this subsection shall pro-vide for the generation of an appropriateamount of credits by any person that refines,blends, distributes or imports gasoline thatcontains a quantity of renewable fuel that isgreater than the quantity required underparagraph (2). Such regulations shall providefor the generation of an appropriate amountof credits for biodiesel fuel. If a small refin-ery notifies the Administrator that it waivesthe exemption provided by this Act, the reg-ulations shall provide for the generation ofcredits by the small refinery beginning inthe year following such notification.

‘‘(B) USE OF CREDITS.—A person that gen-erates credits under subparagraph (A) mayuse the credits, or transfer all or a portion ofthe credits to another person, for the pur-pose of complying with paragraph (2).

‘‘(C) LIFE OF CREDITS.—A credit generatedunder this paragraph shall be valid to showcompliance:

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

(ii) in the calendar year in which the creditwas generated or next two consecutive cal-endar years if the Administrator promul-gates regulations under paragraph (6).

‘‘(D) INABILITY TO PURCHASE SUFFICIENTCREDITS.—The regulations promulgated tocarry out this subsection shall include provi-sions allowing any person that is unable togenerate or purchase sufficient credits tomeet the requirements under paragraph (2)to carry forward a renewables deficit pro-vided that, in the calendar year followingthe year in which the renewables deficit iscreated, such person shall achieve compli-ance with the renewables requirement underparagraph (2), and shall generate or purchaseadditional renewables credits to offset therenewables deficit of the previous year.

‘‘(6) SEASONAL VARIATIONS IN RENEWABLEFUEL USE.—

‘‘(A) STUDY.—For each of calendar years2004 through 2012, the Administrator of theEnergy Information Administration, shallconduct a study of renewable fuels blendingto determine whether there are excessiveseasonal variations in the use of renewablefuels.

‘‘(B) REGULATION OF EXCESSIVE SEASONALVARIATIONS.—If, for any calendar year, theAdministrator of the Energy InformationAdministration, based on the study undersubparagraph (A), makes the determinationsspecified in subparagraph (C), the Adminis-trator shall promulgate regulations to en-sure that 35 percent or more of the quantityof renewable fuels necessary to meet the re-quirement of paragraph (2) is used duringeach of the periods specified in subparagraph(D) of each subsequent calendar year.

‘‘(C) DETERMINATIONS.—The determina-tions referred to in subparagraph (B) arethat—

‘‘(i) less than 35 percent of the quantity ofrenewable fuels necessary to meet the re-quirement of paragraph (2) has been usedduring 1 of the periods specified in subpara-graph (D) of the calendar year; and

‘‘(ii) a pattern of excessive seasonal vari-ation described in clause (i) will continue insubsequent calendar years.

‘‘(D) PERIODS.—The two periods referred toin this paragraph are—

‘‘(i) April through September; and‘‘(ii) January through March and October

through December.‘‘(E) EXCLUSIONS.—Renewable fuels blended

or consumed in 2004 in a state which has re-ceived a waiver under section 209(b) shall notbe included in the study in subparagraph (A).

‘‘(7) WAIVERS.—‘‘(A) IN GENERAL.—The Administrator, in

consultation with the Secretary of Agri-culture and the Secretary of Energy, may

waive the requirement of paragraph (2) inwhole or in part on petition by 1 or moreStates by reducing the national quantity ofrenewable fuel required under thissubsection—

‘‘(i) based on a determination by the Ad-ministrator, after public notice and oppor-tunity for comment, that implementation ofthe requirement would severely harm theeconomy or environment of a State, a re-gion, or the United States; or

‘‘(ii) based on a determination by the Ad-ministrator, after public notice and oppor-tunity for comment, that there is an inad-equate domestic supply or distribution ca-pacity to meet the requirement.

‘‘(B) PETITIONS FOR WAIVERS.—The Admin-istrator, in consultation with the Secretaryof Agriculture and the Secretary of Energy—

‘‘(i) shall approve or deny a State petitionfor a waiver of the requirement of paragraph(2) within 180 days after the date on whichthe petition is received; but

‘‘(ii) may extend that period for up to 60additional days to provide for public noticeand opportunity for comment and for consid-eration of the comments submitted.

‘‘(C) TERMINATION OF WAIVERS.—A waivergranted under subparagraph (A) shall termi-nate after 1 year, but may be renewed by theAdministrator after consultation with theSecretary of Agriculture and the Secretaryof Energy.

‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OFPROGRAM.—Not later than 180 days from en-actment, the Secretary of Energy shall com-plete for the Administrator a study assessingwhether the renewable fuels requirementunder paragraph (2) will likely result in sig-nificant adverse consumer impacts in 2004,on a national, regional or state basis. Suchstudy shall evaluate renewable fuel suppliesand prices, blendstock supplies, and supplyand distribution system capabilities. Basedon such study, the Secretary shall make spe-cific recommendations to the Administratorregarding waiver of the requirements ofparagraph (2), in whole or in part, to avoidany such adverse impacts. Within 270 daysfrom enactment, the Administrator shall,consistent with the recommendations of theSecretary waive, in whole or in part, the re-newable fuels requirement under paragraph(2) by reducing the national quantity of re-newable fuel required under this subsectionin 2004. This provision shall not be inter-preted as limiting the Administrator’s au-thority to waive the requirements of para-graph (2) in whole, or in part, under para-graph (7), pertaining to waivers.

‘‘(9) SMALL REFINERIES.—‘‘(A) IN GENERAL.—The requirement of

paragraph (2) shall not apply to small refin-eries until January 1, 2008. Not later thanDecember 31, 2006, the Secretary of Energyshall complete for the Administrator a studyto determine whether the requirement ofparagraph (2) would impose a dispropor-tionate economic hardship on small refin-eries. For any small refinery that the Sec-retary of Energy determines would experi-ence a disproportionate economic hardship,the Administrator shall extend the small re-finery exemption for such small refinery forno less than two additional years.

‘‘(B) ECONOMIC HARDSHIP.—‘‘(i) A small refinery may at any time peti-

tion the Administrator for an extension ofthe exemption from the requirement of para-graph (2) for the reason of disproportionateeconomic hardship. In evaluating a hardshippetition, the Administrator, in consultationwith the Secretary of Energy, shall considerthe findings of the study in addition to othereconomic factors.

‘‘(ii) DEADLINE FOR ACTION ON PETITIONS.—The Administrator shall act on any petitionsubmitted by a small refinery for a hardship

exemption not later than 90 days after thereceipt of the petition.

‘‘(C) CREDIT PROGRAM.—If a small refinerynotifies the Administrator that it waives theexemption provided by this Act, the regula-tions shall provide for the generation ofcredits by the small refinery beginning inthe year following such notification.

‘‘(D) OPT-IN FOR SMALL REFINERS.—A smallrefinery shall be subject to the requirementsof this section if it notifies the Adminis-trator that it waives the exemption undersubparagraph (A).

‘‘(10) STUDY.—Not later than 180 days afterthe date of enactment, the Secretary of En-ergy shall complete for the Administrator astudy assessing whether the renewable fuelsrequirement under paragraph (2) will likelyresult in significant adverse consumer im-pacts in 2004, on a national, regional or statebasis. Such study shall evaluate renewablefuel supplies and prices, blendstock supplies,and supply and distribution system capabili-ties. Based on such study, the Secretaryshall make specific recommendations to theAdministrator regarding waiver of the re-quirements of paragraph (2), in whole or inpart, to avoid any such adverse impacts.Within 270 days after the date of enactment,the Administrator shall, consistent with therecommendations of the Secretary waive, inwhole or in part, the renewable fuels require-ment under paragraph (2) by reducing the na-tional quantity of renewable fuel requiredunder this subsection in 2004. This provisionshall not be interpreted as limiting the Ad-ministrator’s authority to waive the require-ments of paragraph (2) in whole, or in part,under paragraph (7), pertaining to waivers.’’.

(b) PENALTIES AND ENFORCEMENT.—Section211(d) of the Clean Air Act (42 U.S.C. 7545(d))is amended—

(1) in paragraph (1)—(A) in the first sentence, by striking ‘‘or

(n)’’ each place it appears and inserting ‘‘(n)or (o)’’; and

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

(2) in the first sentence of paragraph (2), bystriking ‘‘and (n)’’ each place it appears andinserting ‘‘(n), and (o)’’.

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

(1) by redesignating paragraph (5) as para-graph (6); and

(2) by inserting after paragraph (4) the fol-lowing:‘‘(5) EXCLUSION FROM ETHANOL WAIVER.—

‘‘(A) PROMULGATION OF REGULATIONS.—Upon notification, accompanied by sup-porting documentation, from the Governorof a State that the Reid vapor pressure limi-tation established by paragraph (4) will in-crease emissions that contribute to air pollu-tion in any area in the State, the Adminis-trator shall, by regulation, apply, in lieu ofthe Reid vapor pressure limitation estab-lished by paragraph (4), the Reid vapor pres-sure limitation established by paragraph (1)to all fuel blends containing gasoline and 10percent denatured anhydrous ethanol thatare sold, offered for sale, dispensed, supplied,offered for supply, transported or introducedinto commerce in the area during the highozone season.

‘‘(B) DEADLINE FOR PROMULGATION.—TheAdministrator shall promulgate regulationsunder subparagraph (A) not later than 90days after the date of receipt of a notifica-tion from a Governor under that subpara-graph.

‘‘(C) EFFECTIVE DATE.—‘‘(i) IN GENERAL.—With respect to an area

in a State for which the Governor submits anotification under subparagraph (A), the reg-ulations under that subparagraph shall takeeffect on the later of—

CONGRESSIONAL RECORD — SENATES1464 March 5, 2002‘‘(I) the first day of the first high ozone

season for the area that begins after the dateof receipt of the notification; or

‘‘(II) 1 year after the date of receipt of thenotification.

‘‘(ii) EXTENSION OF EFFECTIVE DATE BASEDON DETERMINATION OF INSUFFICIENT SUPPLY.—

‘‘(I) IN GENERAL.—If, after receipt of a noti-fication with respect to an area from a Gov-ernor of a State under subparagraph (A), theAdministrator determines, on the Adminis-trator’s own motion or on petition of anyperson and after consultation with the Sec-retary of Energy, that the promulgation ofregulations described in subparagraph (A)would result in an insufficient supply of gas-oline in the State, the Administrator, byregulation—

‘‘(aa) shall extend the effective date of theregulations under clause (i) with respect tothe area for not more than 1 year; and

‘‘(bb) may renew the extension under item(aa) for 2 additional periods, each of whichshall not exceed 1 year.

‘‘(II) DEADLINE FOR ACTION ON PETITIONS.—The Administrator shall act on any petitionsubmitted under subclause (I) not later than180 days after the date of receipt of the peti-tion.’’.

(d) SURVEY OF RENEWABLE FUEL MARKET.—(1) SURVEY AND REPORT.—Not later than

December 1, 2005, and annually thereafter,the Administrator shall—

(A) conduct, with respect to each conven-tional gasoline use area and each reformu-lated gasoline use area in each State, a sur-vey to determine the market shares of—

(i) conventional gasoline containing eth-anol;

(ii) reformulated gasoline containing eth-anol;(iii) conventional gasoline containing renew-able fuel; and

(iv) reformulated gasoline containing re-newable fuel; and

(B) submit to Congress, and make publiclyavailable, a report on the results of the sur-vey under subparagraph (A).

(2) RECORDKEEPING AND REPORTING REQUIRE-MENTS.—The Administrator may require anyrefiner, blender, importer, or distributor tokeep such records and make such reports asare necessary to ensure that the survey con-ducted under paragraph (1) is accurate. TheAdministrator shall rely, to the extent prac-ticable, on existing reporting and record-keeping requirements to avoid duplicativerequirements.

(3) APPLICABLE LAW.—Activities carriedout under this subsection shall be conductedin a manner designed to protect confiden-tiality of individual responses.

(e) RENEWABLE FUELS SAFE HARBOR.—(1) IN GENERAL.—Notwithstanding any

other provision of federal or state law, no re-newable fuel, as defined by this Act, used orintended to be used as a motor vehicle fuel,nor any motor vehicle fuel containing suchrenewable fuel, shall be deemed defective indesign or manufacture by virtue of the factthat it is, or contains, such a renewable fuel,if it does not violate a control or prohibitionimposed by the Administrator under section211 of the Clean Air Act, as amended by thisAct, and the manufacturer is in compliancewith all requests for information under sec-tion 211(b) of the Clean Air Act, as amendedby this Act. In the event that the safe harborunder this section does not apply, the exist-ence of a design defect or manufacturing de-fect shall be determined under otherwise ap-plicable law.

(2) EFFECTIVE DATE.—This section shall beeffective as of the date of enactment andshall apply with respect to all claims filed onor after that date.

Subtitle C—Additional Fuel EfficiencyMeasures

SEC. 821. FUEL EFFICIENCY OF THE FEDERALFLEET OF AUTOMOBILES.

Section 32917 of title 49, United StatesCode, is amended to read as follows:‘‘§ 32917. Standards for executive agency

automobiles‘‘(a) BASELINE AVERAGE FUEL ECONOMY.—

The head of each executive agency shall de-termine, for all automobiles in the agency’sfleet of automobiles that were leased orbought as a new vehicle in fiscal year 1999,the average fuel economy for such auto-mobiles. For the purposes of this section, theaverage fuel economy so determined shall bethe baseline average fuel economy for theagency’s fleet of automobiles.

‘‘(b) INCREASE OF AVERAGE FUEL ECON-OMY.—The head of an executive agency shallmanage the procurement of automobiles forthat agency in such a manner that—

‘‘(1) not later than September 30, 2003, theaverage fuel economy of the new auto-mobiles in the agency’s fleet of automobilesis not less than 1 mile per gallon higher thanthe baseline average fuel economy deter-mined under subsection (a) for that fleet; and

‘‘(2) not later than September 30, 2005, theaverage fuel economy of the new auto-mobiles in the agency’s fleet of automobilesis not less than 3 miles per gallon higherthan the baseline average fuel economy de-termined under subsection (a) for that fleet.

‘‘(c) CALCULATION OF AVERAGE FUEL ECON-OMY.—Average fuel economy shall be cal-culated for the purposes of this section in ac-cordance with guidance which the Secretaryof Transportation shall prescribe for the im-plementation of this section.

‘‘(d) DEFINITIONS.—In this section:‘‘(1) The term ‘automobile’ does not in-

clude any vehicle designed for combat-re-lated missions, law enforcement work, oremergency rescue work.

‘‘(2) The term ‘executive agency’ has themeaning given that term in section 105 oftitle 5.

‘‘(3) The term ‘new automobile’, with re-spect to the fleet of automobiles of an execu-tive agency, means an automobile that isleased for at least 60 consecutive days orbought, by or for the agency, after Sep-tember 30, 1999.’’.SEC. 822. ASSISTANCE FOR STATE PROGRAMS TO

RETIRE FUEL-INEFFICIENT MOTORVEHICLES.

(a) ESTABLISHMENT.—The Secretary shallestablish a program, to be known as the ‘‘Na-tional Motor Vehicle Efficiency Improve-ment Program.’’ Under this program, theSecretary shall provide grants to States tooperate programs to offer owners of pas-senger automobiles and light-duty trucksmanufactured in model years more than 15years prior to the fiscal year in which appro-priations are made under subsection (d) fi-nancial incentives to voluntarily—

(1) scrap such automobiles and to replacethem with automobiles with higher fuel effi-ciency; or

(2) repair such vehicles to improve theirfuel economy.

(b) STATE PLAN.—Not later than 180 daysafter the date of enactment of an appropria-tions act containing funds authorized undersubsection (d), to be eligible to receive fundsunder the program, the Governor of a Stateshall submit to the Secretary a plan to carryout a program under this subtitle in thatState.

(c) ELIGIBILITY CRITERIA.—The Secretaryshall approve a State plan and provide thefunds under subsection (d), if the Stateplan—

(1) for voluntary vehicle scrappageprograms—

(A) requires that all passenger automobilesand light-duty trucks turned in be scrapped;

(B) requires that prior to scrapping a vehi-cle, the state provide public notification ofthe intent to scrap and allow for the salvageof valuable parts from the vehicle;

(C) requires that all passenger automobilesand light-duty trucks turned in be currentlyregistered in the State in order to be eligi-ble;

(D) requires that all passenger automobilesand light-duty trucks turned in be oper-ational at the time that they are turned in;

(E) restricts automobile owners (exceptnot-for-profit organizations) from turning inmore than one passenger automobile and onelight-duty truck in a 12-month period;

(F) provides an appropriate payment to theperson recycling the scrapped passengerautomobile or light-duty truck for eachturned-in passenger automobile or light-dutytruck;

(G) provides a minimum payment to theautomobile owner for each passenger auto-mobile and light-duty truck turned in;

(H) provides, in addition to the paymentunder subparagraph (G), an additional creditthat may be redeemed by the owner of theturned-in passenger automobile or light-dutytruck at the time of purchase of new fuel-ef-ficient automobile; and

(I) estimates the fuel efficiency benefits ofthe program, and reports the estimated re-sults to the Secretary annually; and

(2) for voluntary vehicle repair programs—(A) requires the vehicle owner contribute

at least 20 percent of the cost of the repairs;(B) sets a ceiling beyond which the vehicle

owner is responsible for the cost of repairs;(C) allows the vehicle owner to opt out of

the program if the cost of the repairs is con-sidered to be too great; and

(D) estimates the fuel economy benefits ofthe program and reports the estimated re-sults to the Secretary annually.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are hereby authorized to be appro-priated to the Secretary to carry out thissection such sums as may be necessary, toremain available until expended.

(e) ALLOCATION FORMULA.—The amountsappropriated pursuant to subsection (d) shallbe allocated among the States on the basis ofthe population of the States as contained inthe most recent reliable census data avail-able from the Bureau of the Census, Depart-ment of Commerce, for all States at the timethat the Secretary needs to compute sharesunder this subsection.

(f) DEFINITIONS.—In this section:(1) AUTOMOBILE.—The term ‘‘automobile’’

has the meaning given such term in section32901(3) of title 49, United States Code.

(2) FUEL-EFFICIENT AUTOMOBILE.—(A) The term ‘‘fuel-efficient automobile’’

means a passenger automobile or a light-duty truck that has an average fuel economygreater than the average fuel economystandard prescribed pursuant to section 32902of title 49, United States Code, or other law,applicable to such passenger automobile orlight-duty truck.

(B) The term ‘‘average fuel economy’’ hasthe meaning given such term in section32901(5) of title 49, United States Code.

(C) The term ‘‘average fuel economy stand-ard’’ has the meaning given such term in sec-tion 32901(6) of title 49, United States Code.

(D) The term ‘‘fuel economy’’ has themeaning given such term in section 32901(10)of title 49, United States Code.

(3) LIGHT-DUTY TRUCK.—The term ‘‘light-duty truck’’ means an automobile that is nota passenger automobile. Such term shall in-clude a pickup truck, a van, or a four-wheel-drive general utility vehicle, as those termsare defined in section 600.002–85 of title 40,Code of Federal Regulations.

CONGRESSIONAL RECORD — SENATE S1465March 5, 2002(4) PASSENGER AUTOMOBILE.—The term

‘‘passenger automobile’’ has the meaninggiven such term by section 32901(16) of title49, United States Code.

(5) SECRETARY.—The term ‘‘Secretary’’means the Secretary of Energy.

(6) STATE.—The term ‘‘State’’ means any ofthe several States and the District of Colum-bia.SEC. 823. IDLING REDUCTION SYSTEMS IN HEAVY

DUTY VEHICLES.Title III of the Energy Policy and Con-

servation Act (42 U.S.C. 6291 et seq.) isamended by adding at the end the following:

‘‘PART K—REDUCING TRUCK IDLING

‘‘SEC. 400AAA. REDUCING TRUCK IDLING.‘‘(a) STUDY.—Not later than 18 months

after the date of enactment of this section,the Secretary shall, in consultation with theSecretary of Transportation, commence astudy to analyze the potential fuel savingsresulting from long duration idling of maindrive engines in heavy-duty vehicles.

‘‘(b) REGULATIONS.—Upon completion ofthe study under subsection (a), the Secretarymay issue regulations requiring the installa-tion of idling reduction systems on all newlymanufactured heavy duty vehicles.

‘‘(c) DEFINITIONS.—As used in this section:‘‘(1) The term ‘heavy-duty vehicle’ means a

vehicle that has a gross vehicle weight rat-ing greater than 8,500 pounds and is poweredby a diesel engine.

‘‘(2) The term ‘idling reduction system’means a device or system of devices used toreduce long duration idling of a diesel enginein a vehicle.

‘‘(3) The term ‘long duration idling’ meansthe operation of a main drive engine of aheavy-duty vehicle for a period of more than15 consecutive minutes when the main driveengine is not engaged in gear, except thatsuch term does not include idling as a resultof traffic congestion or other impediments tothe movement of a heavy-duty vehicle.

‘‘(4) The term ‘vehicle’ has the meaninggiven such term in section 4 of title 1, UnitedStates Code.’’.

Subtitle D—Federal Reformulated FuelsSEC. 831. SHORT TITLE.

This subtitle may be cited as the ‘‘FederalReformulated Fuels Act of 2002’’.SEC. 832. LEAKING UNDERGROUND STORAGE

TANKS.(a) USE OF LUST FUNDS FOR REMEDIATION

OF CONTAMINATION FROM ETHER FUEL ADDI-TIVES.—Section 9003(h) of the Solid WasteDisposal Act (42 U.S.C. 6991b(h)) isamended—

(1) in paragraph (7)(A)—(A) by striking ‘‘paragraphs (1) and (2) of

this subsection’’ and inserting ‘‘paragraphs(1), (2), and (12)’’; and

(B) by inserting ‘‘and section 9010’’ before‘‘if’’; and

(2) by adding at the end the following:‘‘(12) REMEDIATION OF CONTAMINATION FROM

ETHER FUEL ADDITIVES.—‘‘(A) IN GENERAL.—The Administrator and

the States may use funds made availableunder section 9013(1) to carry out correctiveactions with respect to a release of methyltertiary butyl ether or other ether fuel addi-tive that presents a threat to human health,welfare, or the environment.

‘‘(B) APPLICABLE AUTHORITY.—Subpara-graph (A) shall be carried out—

‘‘(i) in accordance with paragraph (2), ex-cept that a release with respect to which acorrective action is carried out under sub-paragraph (A) shall not be required to befrom an underground storage tank; and

‘‘(ii) in the case of a State, in accordancewith a cooperative agreement entered intoby the Administrator and the State underparagraph (7).’’.

(b) RELEASE PREVENTION AND COMPLI-ANCE.—Subtitle I of the Solid Waste DisposalAct (42 U.S.C. 6991 et seq.) is amended bystriking section 9010 and inserting the fol-lowing:‘‘SEC. 9010. RELEASE PREVENTION AND COMPLI-

ANCE.‘‘Funds made available under section

9013(2) from the Leaking Underground Stor-age Tank Trust Fund may be used for con-ducting inspections, or for issuing orders orbringing actions under this subtitle—

‘‘(1) by a State (pursuant to section9003(h)(7)) acting under—

‘‘(A) a program approved under section9004; or

‘‘(B) State requirements regulating under-ground storage tanks that are similar oridentical to this subtitle, as determined bythe Administrator; and

‘‘(2) by the Administrator, acting underthis subtitle or a State program approvedunder section 9004.‘‘SEC. 9011. BEDROCK BIOREMEDIATION.

‘‘The Administrator shall establish, at aninstitution of higher education (as defined insection 101 of the Higher Education Act of1965 (20 U.S.C. 1001)) with established exper-tise in bioremediation of contaminated bed-rock aquifers, a resource center—

‘‘(1) to conduct research concerning bio-remediation of methyl tertiary butyl etherin contaminated underground aquifers, in-cluding contaminated bedrock; and

‘‘(2) to provide for States a technical as-sistance clearinghouse for information con-cerning innovative technologies for bio-remediation described in paragraph (1).‘‘SEC. 9012. SOIL REMEDIATION.

‘‘The Administrator may establish a pro-gram to conduct research concerning reme-diation of methyl tertiary butyl ether con-tamination of soil, including granitic or vol-canic soil.‘‘SEC. 9013. AUTHORIZATION OF APPROPRIA-

TIONS.‘‘In addition to amounts made available

under section 2007(f), there are authorized tobe appropriated from the Leaking Under-ground Storage Tank Trust Fund, notwith-standing section 9508(c)(1) of the InternalRevenue Code of 1986—

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

‘‘(2) to carry out section 9010—‘‘(A) $50,000,000 for fiscal year 2003; and‘‘(B) $30,000,000 for each of fiscal years 2004

through 2008;‘‘(3) to carry out section 9011—‘‘(A) $500,000 for fiscal year 2003; and‘‘(B) $300,000 for each of fiscal years 2004

through 2008; and‘‘(4) to carry out section 9012—‘‘(A) $100,000 for fiscal year 2003; and‘‘(B) $50,000 for each of fiscal years 2004

through 2008.(c) TECHNICAL AMENDMENTS.—(1) Section 1001 of the Solid Waste Disposal

Act (42 U.S.C. prec. 6901) is amended bystriking the item relating to section 9010 andinserting the following:‘‘Sec. 9010. Release prevention and compli-

ance.‘‘Sec. 9011. Bedrock bioremediation.‘‘Sec. 9012. Soil remediation.‘‘Sec. 9013. Authorization of appropria-

tions.’’.(2) Section 9001(3)(A) of the Solid Waste

Disposal Act (42 U.S.C. 6991(3)(A)) is amendedby striking ‘‘sustances’’ and inserting ‘‘sub-stances’’.

(3) Section 9003(f)(1) of the Solid Waste Dis-posal Act (42 U.S.C. 6991b(f)(1)) is amended bystriking ‘‘subsection (c) and (d) of this sec-tion’’ and inserting ‘‘subsections (c) and (d)’’.

(4) Section 9004(a) of the Solid Waste Dis-posal Act (42 U.S.C. 6991c(a)) is amended in

the second sentence by striking ‘‘referredto’’ and all that follows and inserting ‘‘re-ferred to in subparagraph (A) or (B), or both,of section 9001(2).’’.

(5) Section 9005 of the Solid Waste DisposalAct (42 U.S.C. 6991d) is amended—

(A) in subsection (a), by striking ‘‘studytaking’’ and inserting ‘‘study, taking’’;

(B) in subsection (b)(1), by striking‘‘relevent’’ and inserting ‘‘relevant’’; and

(C) in subsection (b)(4), by striking‘‘Evironmental’’ and inserting ‘‘Environ-mental’’.SEC. 833. AUTHORITY FOR WATER QUALITY PRO-

TECTION FROM FUELS.(a) FINDINGS.—Congress finds that—(1) since 1979, methyl tertiary butyl ether

(referred to in this section as ‘‘MTBE’’) hasbeen used nationwide at low levels in gaso-line to replace lead as an octane booster oranti-knocking agent;

(2) Public Law 101–549 (commonly known asthe ‘‘Clean Air Act Amendments of 1990’’) (42U.S.C. 7401 et seq.) established a fuel oxygen-ate standard under which reformulated gaso-line must contain at least 2 percent oxygenby weight;

(3) at the time of the adoption of the fueloxygen standard, Congress was aware thatsignificant use of MTBE could result fromthe adoption of that standard, and that theuse of MTBE would likely be important tothe cost-effective implementation of thatprogram;

(4) Congress is aware that gasoline and itscomponent additives have leaked from stor-age tanks, with consequences for water qual-ity;

(5) the fuel industry responded to the fueloxygenate standard established by PublicLaw 101–549 by making substantial invest-ments in—

(A) MTBE production capacity; and(B) systems to deliver MTBE-containing

gasoline to the marketplace;(6) when leaked or spilled into the environ-

ment, MTBE may cause serious problems ofdrinking water quality;

(7) in recent years, MTBE has been de-tected in water sources throughout theUnited States;

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

(9) while small quantities of MTBE canrender water supplies unpalatable, the pre-cise human health effects of MTBE consump-tion at low levels are yet unknown;

(10) in the report entitled ‘‘Achieving CleanAir and Clean Water: The Report of the BlueRibbon Panel on Oxygenates in Gasoline’’and dated September 1999, Congress wasurged—

(A) to eliminate the fuel oxygenate stand-ard;

(B) to greatly reduce use of MTBE; and(C) to maintain the environmental per-

formance of reformulated gasoline;(11) Congress has—(A) reconsidered the relative value of

MTBE in gasoline; and(B) decided to eliminate use of MTBE as a

fuel additive;(12) the timeline for elimination of use of

MTBE as a fuel additive must be establishedin a manner that achieves an appropriatebalance among the goals of—

(A) environmental protection;(B) adequate energy supply; and(C) reasonable fuel prices; and(13) it is appropriate for Congress to pro-

vide some limited transition assistance—(A) to merchant producers of MTBE who

produced MTBE in response to a market cre-ated by the oxygenate requirement con-tained in the Clean Air Act; and

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

CONGRESSIONAL RECORD — SENATES1466 March 5, 2002(b) PURPOSES.—The purposes of this section

are—(1) to eliminate use of MTBE as a fuel oxy-

genate; and(2) to provide assistance to merchant pro-

ducers of MTBE in making the transitionfrom producing MTBE to producing otherfuel additives.

(c) AUTHORITY FOR WATER QUALITY PROTEC-TION FROM FUELS.—Section 211(c) of theClean Air Act (42 U.S.C. 7545(c)) is amended—

(1) in paragraph (1)(A)—(A) by inserting ‘‘fuel or fuel additive or’’

after ‘‘Administrator any’’; and(B) by striking ‘‘air pollution which’’ and

inserting ‘‘air pollution, or water pollution,that’’;

(2) in paragraph (4)(B), by inserting ‘‘orwater quality protection,’’ after ‘‘emissioncontrol,’’; and

(3) by adding at the end the following:‘‘(5) PROHIBITION ON USE OF MTBE.—‘‘(A) IN GENERAL.—Subject to subparagraph

(E), not later than 4 years after the date ofenactment of this paragraph, the use ofmethyl tertiary butyl ether in motor vehiclefuel in any State other than a State de-scribed in subparagraph (C) is prohibited.

‘‘(B) REGULATIONS.—The Administratorshall promulgate regulations to effect theprohibition in subparagraph (A).

‘‘(C) STATES THAT AUTHORIZE USE.—A Statedescribed in this subparagraph is a Statethat submits to the Administrator a noticethat the State authorizes use of methyl ter-tiary butyl ether in motor vehicle fuel soldor used in the State.

‘‘(D) PUBLICATION OF NOTICE.—The Admin-istrator shall publish in the Federal Registereach notice submitted by a State under sub-paragraph (B).

‘‘(E) TRACE QUANTITIES.—In carrying outsubparagraph (A), the Administrator mayallow trace quantities of methyl tertiarybutyl ether, not to exceed 0.5 percent by vol-ume, to be present in motor vehicle fuel incases that the Administrator determines tobe appropriate.

‘‘(6) MTBE MERCHANT PRODUCER CONVER-SION ASSISTANCE.—

‘‘(A) IN GENERAL.—‘‘(i) GRANTS.—The Secretary of Energy, in

consultation with the Administrator, maymake grants to merchant producers of meth-yl tertiary butyl ether in the United Statesto assist the producers in the conversion ofeligible production facilities described insubparagraph (C) to the production of iso-oc-tane and alkylates.

‘‘(ii) DETERMINATION.—The Administrator,in consultation with the Secretary of En-ergy, may determine that transition assist-ance for the production of iso-octane andalkylates is inconsistent with the provisionsof subparagraph (B) and, on that basis, maydeny applications for grants authorized bythis provision.

‘‘(B) The Secretary of Energy, in consulta-tion with the Administrator, may also fur-ther make grants to merchant producers ofMTBE in the United States to assist the pro-ducers in the conversion of eligible produc-tion facilities described in subparagraph (C)to the production of such other fuel additivesthat, consistent with 211(c)—

‘‘(i) unless the Administrator determinesthat such fuel additives may reasonably beanticipated to endanger public health or theenvironment;

‘‘(ii) have been registered and have beentested or are being tested in accordance withthe requirements of this section; and

‘‘(iii) will contribute to replacing gasolinevolumes lost as a result of paragraph (5).

‘‘(C) ELIGIBLE PRODUCTION FACILITIES.—Aproduction facility shall be eligible to re-ceive a grant under this paragraph if the pro-duction facility—

‘‘(i) is located in the United States; and‘‘(ii) produced methyl tertiary butyl ether

for consumption in nonattainment areas dur-ing the period—

‘‘(I) beginning on the date of enactment ofthis paragraph; and

‘‘(II) ending on the effective date of theprohibition on the use of methyl tertiarybutyl ether under paragraph (5).

‘‘(D) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated tocarry out this paragraph $250,000,000 for eachof fiscal years 2003 through 2005.’’.

(d) NO EFFECT ON LAW CONCERNING STATEAUTHORITY.—The amendments made by sub-section (c) have no effect on the law in effecton the day before the date of enactment ofthis Act regarding the authority of States tolimit the use of methyl tertiary butyl etherin motor vehicle fuel.SEC. 834. ELIMINATION OF OXYGEN CONTENT RE-

QUIREMENT FOR REFORMULATEDGASOLINE.

(a) ELIMINATION.—(1) IN GENERAL.—Section 211(k) of the

Clean Air Act (42 U.S.C. 7545(k)) isamended—

(A) in paragraph (2)—(i) in the second sentence of subparagraph

(A), by striking ‘‘(including the oxygen con-tent requirement contained in subparagraph(B))’’;

(ii) by striking subparagraph (B); and(iii) by redesignating subparagraphs (C)

and (D) as subparagraphs (B) and (C), respec-tively;

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

(C) in paragraph (7)—(i) in subparagraph (A)—(I) by striking clause (i); and(II) by redesignating clauses (ii) and (iii) as

clauses (i) and (ii), respectively; and(ii) in subparagraph (C)—(I) by striking clause (ii); and(II) by redesignating clause (iii) as clause

(ii); and(2) EFFECTIVE DATE.—The amendments

made by paragraph (1) take effect 270 daysafter the date of enactment of this Act, ex-cept that such amendments shall take effectupon enactment in any State that has re-ceived a waiver under section 209(b) of theClean Air Act.

(b) MAINTENANCE OF TOXIC AIR POLLUTANTEMISSION REDUCTIONS.—Section 211(k)(1) ofthe Clean Air Act (42 U.S.C. 7545(k)(1)) isamended—

(1) by striking ‘‘Within 1 year after the en-actment of the Clean Air Act Amendments of1990,’’ and inserting the following:

‘‘(A) IN GENERAL.—Not later than Novem-ber 15, 1991,’’; and

(2) by adding at the end the following:‘‘(B) MAINTENANCE OF TOXIC AIR POLLUTANT

EMISSIONS REDUCTIONS FROM REFORMULATEDGASOLINE.—

‘‘(i) DEFINITIONS.—In this subparagraph:‘‘(I) PADD.—The term ‘PADD’ means a Pe-

troleum Administration for Defense District.‘‘(ii) REGULATIONS REGARDING EMISSIONS OF

TOXIC AIR POLLUTANTS.—Not later than 270days after the date of enactment of this sub-paragraph, the Administrator shall estab-lish, for each refinery or importer (otherthan a refinery or importer in a State thathas received a waiver under section 209(b)with regard to gasoline produced for use inthat state), standards for toxic air pollutantsfrom use of the reformulated gasoline pro-duced or distributed by the refinery or im-porter that maintain the reduction of the av-erage annual aggregate emissions of toxicair pollutants for reformulated gasoline pro-duced or distributed by the refinery or im-porter during calendar years 1999 and 2000,determined on the basis of data collected by

the Administrator with respect to the refin-ery or importer.

(iii) STANDARDS APPLICABLE TO SPECIFIC RE-FINERIES OR IMPORTERS.—

‘‘(I) APPLICABILITY OF STANDARDS.—Forany calendar year, the standards applicableto a refinery or importer under clause (ii)shall apply to the quantity of gasoline pro-duced or distributed by the refinery or im-porter in the calendar year only to the ex-tent that the quantity is less than or equalto the average annual quantity of reformu-lated gasoline produced or distributed by therefinery or importer during calendar years1999 and 2000.

‘‘(II) APPLICABILITY OF OTHER STANDARDS.—For any calendar year, the quantity of gaso-line produced or distributed by a refinery orimporter that is in excess of the quantitysubject to subclause (I) shall be subject tostandards for toxic air pollutants promul-gated under subparagraph (A) and paragraph(3)(B).

‘‘(iv) CREDIT PROGRAM.—The Administratorshall provide for the granting and use ofcredits for emissions of toxic air pollutantsin the same manner as provided in paragraph(7).

‘‘(v) REGIONAL PROTECTION OF TOXICS RE-DUCTION BASELINES.—

‘‘(I) IN GENERAL.—Not later than 60 daysafter the date of enactment of this subpara-graph, and not later than April 1 of each cal-endar year that begins after that date of en-actment, the Administrator shall publish inthe Federal Register a report that specifies,with respect to the previous calendar year—

‘‘(aa) the quantity of reformulated gasolineproduced that is in excess of the average an-nual quantity of reformulated gasoline pro-duced in 1999 and 2000; and

‘‘(bb) the reduction of the average annualaggregate emissions of toxic air pollutantsin each PADD, based on retail survey data ordata from other appropriate sources.

‘‘(II) EFFECT OF FAILURE TO MAINTAIN AG-GREGATE TOXICS REDUCTIONS.—If, in any cal-endar year, the reduction of the average an-nual aggregate emissions of toxic air pollut-ants in a PADD fails to meet or exceed thereduction of the average annual aggregateemissions of toxic air pollutants in thePADD in calendar years 1999 and 2000, theAdministrator, not later than 90 days afterthe date of publication of the report for thecalendar year under subclause (I), shall—

‘‘(aa) identify, to the maximum extentpracticable, the reasons for the failure, in-cluding the sources, volumes, and character-istics of reformulated gasoline that contrib-uted to the failure; and

‘‘(bb) promulgate revisions to the regula-tions promulgated under clause (ii), to takeeffect not earlier than 180 days but not laterthan 270 days after the date of promulgation,to provide that, notwithstanding clause(iii)(II), all reformulated gasoline producedor distributed at each refinery or importershall meet the standards applicable underclause (iii) not later than April 1 of the yearfollowing the report in subclause (II) and forsubsequent years.

‘‘(vi) REGULATIONS TO CONTROL HAZARDOUSAIR POLLUTANTS FROM MOTOR VEHICLES ANDMOTOR VEHICLE FUELS.—Not later than July1, 2004, the Administrator shall promulgatefinal regulations to control hazardous airpollutants from motor vehicles and motorvehicle fuels, as provided for in section80.1045 of title 40, Code of Federal Regula-tions (as in effect on the date of enactmentof this subparagraph).’’.

(c) CONSOLIDATION IN REFORMULATED GASO-LINE REGULATIONS.—Not later than 180 daysafter the date of enactment of this Act, theAdministrator shall revise the reformulatedgasoline regulations under subpart D of part80 of title 40, Code of Federal Regulations, to

CONGRESSIONAL RECORD — SENATE S1467March 5, 2002consolidate the regulations applicable toVOC-Control Regions 1 and 2 under section80.41 of that title by eliminating the lessstringent requirements applicable to gaso-line designated for VOC-Control Region 2 andinstead applying the more stringent require-ments applicable to gasoline designated forVOC-Control Region 1.

(d) SAVINGS CLAUSE.—Nothing in this sec-tion is intended to affect or prejudice anylegal claims or actions with respect to regu-lations promulgated by the Administratorprior to enactment of this Act regardingemissions of toxic air pollutants from motorvehicles.

(e) DETERMINATION REGARDING A STATE PE-TITION.—Section 211(k) of the Clean Air Act(42 U.S.C. 7545(k)) is amended by insertingafter paragraph (10) the following:

‘‘(11) DETERMINATION REGARDING A STATEPETITION.—

‘‘(A) IN GENERAL.—Notwithstanding anyother provision of this section, not less thanthirty days after enactment of this para-graph the Administrator must determine theadequacy of any petition received from aGovernor of a State to exempt gasoline soldin that State from the requirements of(k)(2)(B).

‘‘(B) If the determination in (A) is notmade within thirty days of enactment of thisparagraph, the petition shall be deemed ap-proved.’’.SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL

IMPACTS OF FUELS AND FUEL ADDI-TIVES.

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

(1) in paragraph (2)—(A) by striking ‘‘may also’’ and inserting

‘‘shall, on a regular basis,’’; and(B) by striking subparagraph (A) and in-

serting the following:‘‘(A) to conduct tests to determine poten-

tial public health and environmental effectsof the fuel or additive (including carcino-genic, teratogenic, or mutagenic effects);and’’; and

(2) by adding at the end the following:‘‘(4) STUDY ON CERTAIN FUEL ADDITIVES AND

BLENDSTOCKS.—‘‘(A) IN GENERAL.—Not later than 2 years

after the date of enactment of this para-graph, the Administrator shall—

‘‘(i) conduct a study on the effects on pub-lic health, air quality, and water resources ofincreased use of, and the feasibility of usingas substitutes for methyl tertiary butylether in gasoline—

‘‘(I) ethyl tertiary butyl ether;‘‘(II) tertiary amyl methyl ether;‘‘(III) di-isopropyl ether;‘‘(IV) tertiary butyl alcohol;‘‘(V) other ethers and heavy alcohols, as

determined by then Administrator;‘‘(VI) ethanol;‘‘(VII) iso-octane; and‘‘(VIII) alkylates; and‘‘(ii) conduct a study on the effects on pub-

lic health, air quality, and water resources ofthe adjustment for ethanol-blended reformu-lated gasoline to the VOC performance re-quirements otherwise applicable under sec-tions 211(k)(1) and 211(k)(3) of the Clean AirAct.

‘‘(iii) submit to the Committee on Environ-ment and Public Works of the Senate andthe Committee on Energy and Commerce ofthe House of Representatives a report de-scribing the results of these studies.

‘‘(B) CONTRACTS FOR STUDY.—In carryingout this paragraph, the Administrator mayenter into 1 or more contracts with non-governmental entities including but not lim-ited to National Energy Laboratories and in-stitutions of higher education (as defined insection 101 of the Higher Education Act of1965 (20 U.S.C. 1001)).’’.

SEC. 836. ANALYSES OF MOTOR VEHICLE FUELCHANGES.

Section 211 of the Clean Air Act (42 U.S.C.7545) (as amended by section 819(a)) is amend-ed by inserting after subsection (o) the fol-lowing:

‘‘(p) ANALYSES OF MOTOR VEHICLE FUELCHANGES AND EMISSIONS MODEL.—

‘‘(1) ANTI-BACKSLIDING ANALYSIS.—‘‘(A) DRAFT ANALYSIS.—Not later than 4

years after the date of enactment of thisparagraph, the Administrator shall publishfor public comment a draft analysis of thechanges in emissions of air pollutants andair quality due to the use of motor vehiclefuel and fuel additives resulting from imple-mentation of the amendments made by theFederal Reformulated Fuels Act of 2002.

‘‘(B) FINAL ANALYSIS.—After providing areasonable opportunity for comment but notlater than 5 years after the date of enact-ment of this paragraph, the Administratorshall publish the analysis in final form.

‘‘(2) EMISSIONS MODEL.—For the purposes ofthis subsection, as soon as the necessarydata are available, the Administrator shalldevelop and finalize an emissions model thatreasonably reflects the effects of gasolinecharacteristics or components on emissionsfrom vehicles in the motor vehicle fleet dur-ing calendar year 2005.’’.SEC. 837. ADDITIONAL OPT-IN AREAS UNDER RE-

FORMULATED GASOLINE PROGRAM.

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

(1) by striking ‘‘(6) OPT-IN AREAS.—(A)Upon’’ and inserting the following:

‘‘(6) OPT-IN AREAS.—‘‘(A) CLASSIFIED AREAS.—‘‘(i) IN GENERAL.—Upon’’;(2) in subparagraph (B), by striking ‘‘(B)

If’’ and inserting the following:‘‘(ii) EFFECT OF INSUFFICIENT DOMESTIC CA-

PACITY TO PRODUCE REFORMULATED GASO-LINE.—If’’;

(3) in subparagraph (A)(ii) (as redesignatedby paragraph (2))—

(A) in the first sentence, by striking ‘‘sub-paragraph (A)’’ and inserting ‘‘clause (i)’’;and

(B) in the second sentence, by striking‘‘this paragraph’’ and inserting ‘‘this sub-paragraph’’; and

(4) by adding at the end the following:‘‘(B) OZONE TRANSPORT REGION.—‘‘(i) APPLICATION OF PROHIBITION.—‘‘(I) IN GENERAL.—In addition to the provi-

sions of subparagraph (A), upon the applica-tion of the Governor of a State in the ozonetransport region established by section184(a), the Administrator, not later than 180days after the date of receipt of the applica-tion, shall apply the prohibition specified inparagraph (5) to any area in the State (otherthan an area classified as a marginal, mod-erate, serious, or severe ozone nonattain-ment area under subpart 2 of part D of titleI) unless the Administrator determinesunder clause (iii) that there is insufficientcapacity to supply reformulated gasoline.

‘‘(II) PUBLICATION OF APPLICATION.—As soonas practicable after the date of receipt of anapplication under subclause (I), the Adminis-trator shall publish the application in theFederal Register.

‘‘(ii) PERIOD OF APPLICABILITY.—Underclause (i), the prohibition specified in para-graph (5) shall apply in a State—

‘‘(I) commencing as soon as practicable butnot later than 2 years after the date of ap-proval by the Administrator of the applica-tion of the Governor of the State; and

‘‘(II) ending not earlier than 4 years afterthe commencement date determined undersubclause (I).

‘‘(iii) EXTENSION OF COMMENCEMENT DATEBASED ON INSUFFICIENT CAPACITY.—

‘‘(I) IN GENERAL.—If, after receipt of an ap-plication from a Governor of a State underclause (i), the Administrator determines, onthe Administrator’s own motion or on peti-tion of any person, after consultation withthe Secretary of Energy, that there is insuf-ficient capacity to supply reformulated gaso-line, the Administrator, by regulation—‘‘(aa) shall extend the commencement datewith respect to the State under clause (ii)(I)for not more than 1 year; and‘‘(bb) may renew the extension under item(aa) for 2 additional periods, each of whichshall not exceed 1 year.

‘‘(II) DEADLINE FOR ACTION ON PETITIONS.—The Administrator shall act on any petitionsubmitted under subclause (I) not later than180 days after the date of receipt of the peti-tion.’’.SEC. 838. FEDERAL ENFORCEMENT OF STATE

FUELS REQUIREMENTS.Section 211(c)(4)(C) of the Clean Air Act (42

U.S.C. 7545(c)(4)(C)) is amended—(1) by striking ‘‘(C) A State’’ and inserting

the following:‘‘(C) AUTHORITY OF STATE TO CONTROL

FUELS AND FUEL ADDITIVES FOR REASONS OFNECESSITY.—

‘‘(i) IN GENERAL.—A State’’; and(2) by adding at the end the following:‘‘(ii) ENFORCEMENT BY THE ADMINIS-

TRATOR.—In any case in which a State pre-scribes and enforces a control or prohibitionunder clause (i), the Administrator, at therequest of the State, shall enforce the con-trol or prohibition as if the control or prohi-bition had been adopted under the other pro-visions of this section.’’.SEC. 839. FUEL SYSTEM REQUIREMENTS HARMO-

NIZATION STUDY.(a) STUDY.—(1) IN GENERAL.—The Administrator of the

Environmental Protection Agency and theSecretary of Energy shall jointly conduct astudy of Federal, State, and local require-ments concerning motor vehicle fuels,including—

(A) requirements relating to reformulatedgasoline, volatility (measured in Reid vaporpressure), oxygenated fuel, and diesel fuel;and

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

(2) REQUIRED ELEMENTS.—The study shallassess—

(A) the effect of the variety of require-ments described in paragraph (1) on the sup-ply, quality, and price of motor vehicle fuelsavailable to the consumer;

(B) the effect of the requirements describedin paragraph (1) on achievement of—

(i) national, regional, and local air qualitystandards and goals; and

(ii) related environmental and publichealth protection standards and goals;

(C) the effect of Federal, State, and localmotor vehicle fuel regulations, includingmultiple motor vehicle fuel requirements,on—

(i) domestic refineries;(ii) the fuel distribution system; and(iii) industry investment in new capacity;(D) the effect of the requirements de-

scribed in paragraph (1) on emissions fromvehicles, refineries, and fuel handling facili-ties;

(E) the feasibility of developing national orregional motor vehicle fuel slates for the 48contiguous States that, while protecting andimproving air quality at the national, re-gional, and local levels, could—

(i) enhance flexibility in the fuel distribu-tion infrastructure and improve fuelfungibility;

(ii) reduce price volatility and costs toconsumers and producers;

CONGRESSIONAL RECORD — SENATES1468 March 5, 2002(iii) provide increased liquidity to the gas-

oline market; and(iv) enhance fuel quality, consistency, and

supply; and(F) the feasibility of providing incentives,

and the need for the development of nationalstandards necessary, to promote cleanerburning motor vehicle fuel.

(b) REPORT.—(1) IN GENERAL.—Not later than June 1,

2006, the Administrator of the Environ-mental Protection Agency and the Secretaryof Energy shall submit to Congress a reporton the results of the study conducted undersubsection (a).

(2) RECOMMENDATIONS.—(A) IN GENERAL.—The report shall contain

recommendations for legislative and admin-istrative actions that may be taken—

(i) to improve air quality;(ii) to reduce costs to consumers and pro-

ducers; and(iii) to increase supply liquidity.(B) REQUIRED CONSIDERATIONS.—The rec-

ommendations under subparagraph (A) shalltake into account the need to provide ad-vance notice of required modifications to re-finery and fuel distribution systems in orderto ensure an adequate supply of motor vehi-cle fuel in all States.

(3) CONSULTATION.—In developing the re-port, the Administrator of the Environ-mental Protection Agency and the Secretaryof Energy shall consult with—

(A) the Governors of the States;(B) automobile manufacturers;(C) motor vehicle fuel producers and dis-

tributors; and(D) the public.

TITLE IX—ENERGY EFFICIENCY AND AS-SISTANCE TO LOW INCOME CONSUMERS

Subtitle A—Low Income Assistance and StateEnergy Programs

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

(a) LIHEAP.—(1) Section 2602(b) of theLow-Income Home Energy Assistance Act of1981 (42 U.S.C. 8621(b)) is amended by strikingthe first sentence and inserting the fol-lowing: ‘‘There are authorized to be appro-priated to carry out the provisions of thistitle (other than section 2607A), $3,400,000,000for each of fiscal years 2003 through 2005.’’.

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

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

(b) WEATHERIZATION ASSISTANCE.—Section422 of the Energy Conservation and Produc-tion Act (42 U.S.C. 6872) is amended by strik-ing ‘‘for fiscal years 1999 through 2003 suchsums as may be necessary.’’ and inserting:‘‘$325,000,000 for fiscal year 2003, $400,000,000for fiscal year 2004, and $500,000,000 for fiscalyear 2005.’’.SEC. 902. STATE ENERGY PROGRAMS.

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

‘‘(g) The Secretary shall, at least onceevery three years, invite the Governor ofeach State to review and, if necessary, revisethe energy conservation plan of the Statesubmitted under subsection (b) or (e). Suchreviews should consider the energy conserva-tion plans of other States within the region,and identify opportunities and actions thatmay be carried out in pursuit of common en-ergy conservation goals.’’.

(b) STATE ENERGY CONSERVATION GOALS.—Section 364 of the Energy Policy and Con-

servation Act (42 U.S.C. 6324) is amended toread as follows:

‘‘SEC. 364. Each State energy conservationplan with respect to which assistance ismade available under this part on or afterthe date of enactment of the Energy PolicyAct of 2002 shall contain a goal, consisting ofan improvement of 25 percent or more in theefficiency of use of energy in the State con-cerned in calendar year 2010 as compared tocalendar year 1990, and may contain interimgoals.’’.

(c) STATE ENERGY CONSERVATION GRANTS.—Section 365(f) of the Energy Policy and Con-servation Act (42 U.S.C. 6325(f)) is amendedby striking ‘‘for fiscal years 1999 through 2003such sums as may be necessary.’’ and insert-ing: ‘‘$100,000,000 for each of fiscal years 2003and 2004; $125,000,000 for fiscal year 2005; andsuch sums as may be necessary for each fis-cal year thereafter.’’.SEC. 903. ENERGY EFFICIENT SCHOOLS.

(a) ESTABLISHMENT.—There is establishedin the Department of Energy the High Per-formance Schools Program (in this sectionreferred to as the ‘‘Program’’).

(b) GRANTS.—The Secretary of Energy maymake grants to a State energy office—

(1) to assist school districts in the State toimprove the energy efficiency of schoolbuildings;

(2) to administer the Program; and(3) to promote participation in the Pro-

gram.(c) GRANTS TO ASSIST SCHOOL DISTRICTS.—

The Secretary shall condition grants undersubsection (b)(1) on the State energy officeusing the grants to assist school districtsthat have demonstrated—

(1) a need for the grants to build additionalschool buildings to meet increasing elemen-tary or secondary enrollments or to renovateexisting school buildings; and

(2) a commitment to use the grant funds todevelop high performance school buildings inaccordance with a plan that the State energyoffice, in consultation with the State edu-cational agency, has determined is feasibleand appropriate to achieve the purposes forwhich the grant is made.

(d) GRANTS FOR ADMINISTRATION.—Grantsunder subsection (b)(2) shall be used to—

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

(2) distribute information and materials toclearly define and promote the developmentof high performance school buildings forboth new and existing facilities;

(3) organize and conduct programs forschool board members, school personnel, ar-chitects, engineers, and others to advancethe concepts of high performance schoolbuildings;

(4) obtain technical services and assistancein planning and designing high performanceschool buildings; or

(5) collect and monitor data and informa-tion pertaining to the high performanceschool building projects.

(e) GRANTS TO PROMOTE PARTICIPATION.—Grants under subsection (b)(3) shall be usedfor promotional and marketing activities,including facilitating private and public fi-nancing, promoting the use of energy savingsperformance contracts, working with schooladministrations, students, and communities,and coordinating public benefit programs.

(f) SUPPLEMENTING GRANT FUNDS.—TheState energy office shall encourage quali-fying school districts to supplement fundsawarded pursuant to this section with fundsfrom other sources in the implementation oftheir plans.

(g) ALLOCATIONS.—Except as provided insubsection (h), funds appropriated to carryout this section shall be allocated as follows:

(1) 70 percent shall be used to make grantsunder subsection (b)(1);

(2) 15 percent shall be used to make grantsunder subsection (b)(2); and

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

(h) OTHER FUNDS.—The Secretary of En-ergy may retain an amount, not to exceed$300,000 per year, to assist State energy of-fices in coordinating and implementing theProgram. Such funds may be used to developreference materials to further define theprinciples and criteria to achieve high per-formance school buildings.

(i) AUTHORIZATION OF APPROPRIATIONS.—For grants under subsection (b) there are au-thorized to be appropriated—

(1) $200,000,000 for fiscal year 2003;(2) $210,000,000 for fiscal year 2004;(3) $220,000,000 for fiscal year 2005;(4) $230,000,000 for fiscal year 2006; and(5) such sums as may be necessary for fis-

cal year 2007 and each fiscal year thereafterthrough fiscal year 2012.

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

(1) HIGH PERFORMANCE SCHOOL BUILDING.—The term ‘‘high performance school build-ing’’ means a school building that, in its de-sign, construction, operation, andmaintenance—

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

(B) is cost-effective on a life-cycle basis;(C) achieves either—(i) the applicable Energy Star building en-

ergy performance ratings, or(ii) energy consumption levels at least 30

percent below those of the most recentversion of ASHRAE Standard 90.1;

(D) uses affordable, environmentally pref-erable, and durable materials;

(E) enhances indoor environmental qual-ity;

(F) protects and conserves water; and(G) optimizes site potential.(2) RENEWABLE ENERGY.—The term ‘‘renew-

able energy’’ means energy produced bysolar, wind, biomass, ocean, geothermal, orhydroelectric power.

(3) SCHOOL.—The term ‘‘school’’ means—(A) an ‘‘elementary school’’ as that term is

defined in section 14101(14) of the Elementaryand Secondary Education Act of 1965 (20U.S.C. 8801(14)),

(B) a ‘‘secondary school’’ as that term isdefined in section 14101(25) of the Elementaryand Secondary Education Act of 1965 (20U.S.C. 8801(25)), or

(C) an elementary or secondary Indianschool funded by the Bureau of Indian Af-fairs.

(4) STATE EDUCATIONAL AGENCY.—The term‘‘State educational agency’’ has the samemeaning given such term in section 14101(28)of the Elementary and Secondary EducationAct of 1965 (20 U.S.C. 8801(28)).

(5) STATE ENERGY OFFICE.—The term‘‘State energy office’’ means the State agen-cy responsible for developing State energyconservation plans under section 362 of theEnergy Policy and Conservation Act (42U.S.C. 6322), or, if no such agency exists, aState agency designated by the Governor ofthe State.SEC. 904. LOW INCOME COMMUNITY ENERGY EF-

FICIENCY PILOT PROGRAM.(a) GRANTS.—The Secretary of Energy is

authorized to make grants to private, non-profit community development organiza-tions and Indian tribe economic developmententities to improve energy efficiency, iden-tify and develop alternative renewable anddistributed energy supplies, and increase en-ergy conservation in low income rural andurban communities.

(b) PURPOSE OF GRANTS.—The Secretarymay make grants on a competitive basis toa community development organization for—

(1) investments that develop alternativerenewable and distributed energy supplies;

CONGRESSIONAL RECORD — SENATE S1469March 5, 2002(2) energy efficiency projects and energy

conservation programs;(3) studies and other activities that im-

prove energy efficiency in low income ruraland urban communities;

(4) planning and development assistancefor increasing the energy efficiency of build-ings and facilities; and

(5) technical and financial assistance tolocal government and private entities on de-veloping new renewable and distributedsources of power or combined heat and powergeneration.

(c) DEFINITION.—For purposes of this sec-tion, the term ‘‘Indian tribe’’means any In-dian tribe, band, nation, or other organizedgroup or community, including any AlaskanNative 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.

(d) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of this section there are au-thorized to be appropriated to the Secretaryof Energy an amount not to exceed $10 mil-lion for fiscal year 2003 and each fiscal yearthereafter through fiscal year 2005.

Subtitle B—Federal Energy EfficiencySEC. 911. ENERGY MANAGEMENT REQUIRE-

MENTS.(a) ENERGY REDUCTION GOALS.—Section

543(a)(1) of the National Energy ConservationPolicy Act (42 U.S.C. 8253(a)(1)) is amendedto read as follows:

‘‘(1) Subject to paragraph (2), each agencyshall apply energy conservation measures to,and shall improve the design for the con-struction of, the Federal buildings of theagency (including each industrial or labora-tory facility) so that the energy consump-tion per gross square foot of the Federalbuildings of the agency in fiscal years 2002through 2011 is reduced, as compared withthe energy consumption per gross squarefoot of the Federal buildings of the agency infiscal year 2000, by the percentage specifiedin the following table:‘‘Fiscal Year Percentage reduction

2002 ......................................... 22003 ......................................... 42004 ......................................... 62005 ......................................... 82006 ......................................... 102007 ......................................... 122008 ......................................... 142009 ......................................... 162010 ......................................... 182011 ......................................... 20

(b) REVIEW AND REVISION OF ENERGY PER-FORMANCE REQUIREMENT.—Section 543(a) ofthe National Energy Conservation PolicyAct (42 U.S.C. 8253(a)) is further amended byadding at the end the following:

‘‘(3) Not later than December 31, 2010, theSecretary shall review the results of the im-plementation of the energy performance re-quirement established under paragraph (1)and submit to Congress recommendationsconcerning energy performance require-ments for calendar years 2012 through 2021.’’.

(c) EXCLUSIONS.—Section 543(c)(1) of theNational Energy Conservation Policy Act (42U.S.C. 8253(c)(1)) is amended to read as fol-lows:

‘‘(1)(A) An agency may exclude, from theenergy performance requirement for a cal-endar year established under subsection (a)and the energy management requirement es-tablished under subsection (b), any Federalbuilding or collection of Federal buildings, ifthe head of the agency finds that—

‘‘(i) compliance with those requirementswould be impracticable;

‘‘(ii) the agency has completed and sub-mitted all federally required energy manage-ment reports;

‘‘(iii) the agency has achieved compliancewith the energy efficiency requirements ofthis Act, the Energy Policy Act of 1992, Ex-ecutives Orders, and other federal law; and

‘‘(iv) the agency has implemented all prac-ticable, life-cycle cost-effective projects withrespect to the Federal building or collectionof Federal buildings to be excluded.

‘‘(B) A finding of impracticability undersubparagraph (A)(i) shall be based on—

‘‘(i) the energy intensiveness of activitiescarried out in the Federal building or collec-tion of Federal buildings; or

‘‘(ii) the fact that the Federal building orcollection of Federal buildings is used in theperformance of a national security func-tion.’’.

(d) REVIEW BY SECRETARY.—Section543(c)(2) of the National Energy ConservationPolicy Act (42 U.S.C. 8253(c)(2)) is amended—

(1) by striking ‘‘impracticability stand-ards’’ and inserting ‘‘standards for exclu-sion’’; and

(2) by striking ‘‘a finding of imprac-ticability’’ and inserting ‘‘the exclusion’’.

(e) CRITERIA.—Section 543(c) of the Na-tional Energy Conservation Policy Act (42U.S.C. 8253(c)) is further amended by addingat the end the following:

‘‘(3) Not later than 180 days after the dateof enactment of this paragraph, the Sec-retary shall issue guidelines that establishcriteria for exclusions under paragraph (1).’’.

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

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

(2) by inserting ‘‘President and’’ before‘‘Congress’’.

(g) CONFORMING AMENDMENT.—Section550(d) of the National Energy ConservationPolicy Act (42 U.S.C. 8258b(d)) is amended inthe second sentence by striking ‘‘the 20 per-cent reduction goal established under sec-tion 543(a) of the National Energy Conserva-tion Policy Act (42 U.S.C. 8253(a)).’’ and in-serting ‘‘each of the energy reduction goalsestablished under section 543(a).’’.SEC. 912. ENERGY USE MEASUREMENT AND AC-

COUNTABILITY.Section 543 of the National Energy Con-

servation Policy Act (42 U.S.C. 8253) is fur-ther amended by adding at the end the fol-lowing:

‘‘(e) METERING OF ENERGY USE.—‘‘(1) DEADLINE.—By October 1, 2004, all Fed-

eral buildings shall be metered or sub-metered in accordance with guidelines estab-lished by the Secretary under paragraph (2).

‘‘(2) GUIDELINES.—‘‘(A) IN GENERAL.—Not later than 180 days

after the date of enactment of this sub-section, the Secretary, in consultation withthe Department of Defense, the GeneralService Administration and representativesfrom the metering industry, energy servicesindustry, national laboratories, universitiesand federal facility energy managers, shallestablish guidelines for agencies to carry outparagraph (1).

‘‘(B) REQUIREMENTS FOR GUIDELINES.—Theguidelines shall—

‘‘(i) take into consideration—‘‘(I) the cost of metering and submetering

and the reduced cost of operation and main-tenance expected to result from meteringand submetering;

‘‘(II) the extent to which metering and sub-metering are expected to result in increasedpotential for energy management, increasedpotential for energy savings and energy effi-ciency improvement, and cost and energysavings due to utility contract aggregation;and

‘‘(III) the measurement and verificationprotocols of the Department of Energy;

‘‘(ii) include recommendations concerningthe amount of funds and the number oftrained personnel necessary to gather anduse the metering information to track andreduce energy use;

‘‘(iii) establish 1 or more dates, not laterthan 1 year after the date of issuance of theguidelines, on which the requirement speci-fied in paragraph (1) shall take effect; and

‘‘(iv) establish exclusions from the require-ment specified in paragraph (1) based on thede minimus quantity of energy use of a Fed-eral building, industrial process, or struc-ture.

‘‘(f) USE OF ENERGY CONSUMPTION DATA INFEDERAL BUILDINGS.—

‘‘(1) IN GENERAL.—Beginning not later thanJanuary 1, 2003, each agency shall use, to themaximum extent practicable, for the pur-poses of efficient use of energy and reductionin the cost of electricity used in the Federalbuildings of the agency, interval consump-tion data that measure on a real-time ordaily basis consumption of electricity in theFederal buildings of the agency.

‘‘(2) PLAN.—As soon as practicable afterthe date of enactment of this subsection, ina report submitted by the agency under sec-tion 548(a), each agency shall submit to theSecretary a plan describing how the agencywill implement the requirement of para-graph (1), including how the agency will des-ignate personnel primarily responsible forachieving the requirement.’’.

SEC. 913. FEDERAL BUILDING PERFORMANCESTANDARDS.

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

(1) in paragraph (2)(A), by striking ‘‘CABOModel Energy Code, 1992’’ and inserting ‘‘the2000 International Energy ConservationCode’’; and

(2) by adding at the end the following:‘‘(3) REVISED FEDERAL BUILDING ENERGY EF-

FICIENCY PERFORMANCE STANDARDS.—‘‘(A) IN GENERAL.—Not later than 1 year

after the date of enactment of this para-graph, the Secretary of Energy shall estab-lish, by rule, revised Federal building energyefficiency performance standards that re-quire that, if cost-effective—

‘‘(i) new commercial buildings and multi-family high rise residential buildings be con-structed so as to achieve the applicable En-ergy Star building energy performance rat-ings or energy consumption levels at least 30percent below those of the most recentASHRAE Standard 90.1, whichever results inthe greater increase in energy efficiency;

‘‘(ii) new residential buildings (other thanthose described in clause (i)) be constructedso as to achieve the applicable Energy Starbuilding energy performance ratings orachieve energy consumption levels at least30 percent below the requirements of themost recent version of the International En-ergy Conservation Code, whichever results inthe greater increase in energy efficiency; and

‘‘(iii) sustainable design principles are ap-plied to the siting, design, and constructionof all new and replacement buildings.

‘‘(B) ADDITIONAL REVISIONS.—Not laterthan 1 year after the date of approval ofamendments to ASHRAE Standard 90.1 orthe 2000 International Energy ConservationCode, the Secretary of Energy shall deter-mine, based on the cost-effectiveness of therequirements under the amendments, wheth-er the revised standards established underthis paragraph should be updated to reflectthe amendments.

‘‘(C) STATEMENT ON COMPLIANCE OF NEWBUILDINGS.—In the budget request of the Fed-eral agency for each fiscal year and each re-port submitted by the Federal agency under

CONGRESSIONAL RECORD — SENATES1470 March 5, 2002section 548(a) of the National Energy Con-servation Policy Act (42 U.S.C. 8258(a)), thehead of each Federal agency shall include—

‘‘(i) a list of all new Federal buildings ofthe Federal agency; and

‘‘(ii) a statement concerning whether theFederal buildings meet or exceed the revisedstandards established under this paragraph,including a monitoring and commissioningreport that is in compliance with the meas-urement and verification protocols of the De-partment of Energy.

‘‘(D) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated suchsums as are necessary to carry out this para-graph and to implement the revised stand-ards established under this paragraph.’’.

(b) ENERGY LABELING PROGRAM.—Section305(a) of the Energy Conservation and Pro-duction Act (42 U.S.C. 6834(a)) is furtheramended by adding at the end the following:

‘‘(e) ENERGY LABELING PROGRAM.—The Sec-retary of Energy, in cooperation with theAdministrator of the Environmental Protec-tion Agency, shall develop an energy label-ing program for new Federal buildings thatexceed the revised standards establishedunder subsection (a)(3) by 15 percent ormore.’’.SEC. 914. PROCUREMENT OF ENERGY EFFICIENT

PRODUCTS.(a) REQUIREMENTS.—Part 3 of title V of the

National Energy Conservation Policy Act isamended by adding at the end the following:‘‘SEC. 552. FEDERAL PROCUREMENT OF ENERGY

EFFICIENT PRODUCTS.‘‘(a) DEFINITIONS.—In this section:‘‘(1) ENERGY STAR PRODUCT.—The term ‘En-

ergy Star product’ means a product that israted for energy efficiency under an EnergyStar program.

‘‘(2) ENERGY STAR PROGRAM.—The term‘Energy Star program’ means the programestablished by section 324A of the EnergyPolicy and Conservation Act.

‘‘(3) EXECUTIVE AGENCY.—The term ‘execu-tive agency’ has the meaning given the termin section 4 of the Office of Federal Procure-ment Policy Act (41 U.S.C. 403).

‘‘(4) FEMP DESIGNATED PRODUCT.—Theterm ‘FEMP designated product’ means aproduct that is designated under the FederalEnergy Management Program of the Depart-ment of Energy as being among the highest25 percent of equivalent products for energyefficiency.

‘‘(b) PROCUREMENT OF ENERGY EFFICIENTPRODUCTS.—

‘‘(1) REQUIREMENT.—To meet the require-ments of an executive agency for an energyconsuming product, the head of the execu-tive agency shall, except as provided in para-graph (2), procure—

‘‘(A) an Energy Star product; or‘‘(B) a FEMP designated product.‘‘(2) EXCEPTIONS.—The head of an executive

agency is not required to procure an EnergyStar product or FEMP designated productunder paragraph (1) if—

‘‘(A) an Energy Star product or FEMP des-ignated product is not cost effective over thelife cycle of the product; or

‘‘(B) no Energy Star product or FEMP des-ignated product is reasonably available thatmeets the requirements of the executiveagency.

‘‘(3) PROCUREMENT PLANNING.—The head ofan executive agency shall incorporate intothe specifications for all procurements in-volving energy consuming products and sys-tems, and into the factors for the evaluationof offers received for the procurement, cri-teria for energy efficiency that are con-sistent with the criteria used for rating En-ergy Star products and for rating FEMP des-ignated products.

‘‘(c) LISTING OF ENERGY EFFICIENT PROD-UCTS IN FEDERAL CATALOGS.—Energy Star

and FEMP designated products shall beclearly identified and prominently displayedin any inventory or listing of products bythe General Services Administration or theDefense Logistics Agency.

(b) CONFORMING AMENDMENT.—The table ofcontents in section 1(b) of the National En-ergy Conservation Policy Act (42 U.S.C. 8201note) is amended by inserting after the itemrelating to section 551 the following:‘‘Sec. 552. Federal Government procurement

of energy efficient products.’’(c) REGULATIONS.—Not later than 180 days

after the effective date specified in sub-section (f), the Secretary of Energy shallissue guidelines to carry out section 552 ofthe National Energy Conservation PolicyAct (as added by subsection (a)).

(d) DESIGNATION OF ENERGY STAR PROD-UCTS.—The Administrator of the Environ-mental Protection Agency and the Secretaryof Energy shall expedite the process of desig-nating products as Energy Star products (asdefined in section 552 of the National EnergyConservation Policy Act (as added by sub-section (a)).

(e) DESIGNATION OF ELECTRIC MOTORS.—Inthe case of electric motors of 1 to 500 horse-power, agencies shall select only premiumefficient motors that meet a standard des-ignated by the Secretary. The Secretaryshall designate such a standard within 120days of the enactment of this paragraph,after considering the recommendations of as-sociated electric motor manufacturers andenergy efficiency groups.

(f) EFFECTIVE DATE.—Subsection (a) andthe amendment made by that subsectiontake effect on the date that is 180 days afterthe date of enactment of this Act.SEC. 915. REPEAL OF ENERGY SAVINGS PER-

FORMANCE CONTRACT SUNSET.Section 801(c) of the National Energy Con-

servation Policy Act (42 U.S.C. 8287(c)) is re-pealed.SEC. 916. ENERGY SAVINGS PERFORMANCE CON-

TRACT DEFINITIONS.(a) ENERGY SAVINGS.—Section 804(2) of the

National Energy Conservation Policy Act (42U.S.C. 8287c(2)) is amended to read as follows:

‘‘(2) The term ‘energy savings’ means a re-duction in the cost of energy or water, froma base cost established through a method-ology set forth in the contract, used in anexisting federally owned building or build-ings or other federally owned facilities as aresult of—

‘‘(A) the lease or purchase of operatingequipment, improvements, altered operationand maintenance, or technical services;

‘‘(B) the increased efficient use of existingenergy sources by cogeneration or heat re-covery, excluding any cogeneration processfor other than a federally owned building orbuildings or other federally owned facilities;or

‘‘(C) the increased efficient use of existingwater sources.’’.

(b) ENERGY SAVINGS CONTRACT.—Section804(3) of the National Energy ConservationPolicy Act (42 U.S.C. 8287c(3)) is amended toread as follows:

‘‘(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 or water conservationmeasure or series of measures at one or morelocations.’’.

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

‘‘(4) The term ‘energy or water conserva-tion measure’ means—

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

‘‘(B) a water conservation measure thatimproves water efficiency, is life cycle costeffective, and involves water conservation,water recycling or reuse, more efficienttreatment of wastewater or stormwater, im-provements in operation or maintenance ef-ficiencies, retrofit activities or other relatedactivities, not at a Federal hydroelectric fa-cility.’’.SEC. 917. REVIEW OF ENERGY SAVINGS PER-

FORMANCE CONTRACT PROGRAM.Within 180 days after the date of the enact-

ment of this Act, the Secretary of Energyshall complete a review of the Energy Sav-ings Performance Contract program to iden-tify statutory, regulatory, and administra-tive obstacles that prevent Federal agenciesfrom fully utilizing the program. In addition,this review shall identify all areas for in-creasing program flexibility and effective-ness, including audit and measurementverification requirements, accounting for en-ergy use in determining savings, contractingrequirements, and energy efficiency servicescovered. The Secretary shall report thesefindings to the Committee on Energy andCommerce of the House of Representativesand the Committee on Energy and NaturalResources of the Senate, and shall imple-ment identified administrative and regu-latory changes to increase program flexi-bility and effectiveness to the extent thatsuch changes are consistent with statutoryauthority.SEC. 918. FEDERAL ENERGY BANK.

Part 3 of title V of the National EnergyConservation Policy Act is amended by add-ing at the end the following:‘‘SEC. 553. FEDERAL ENERGY BANK.

‘‘(a) DEFINITIONS.—In this section:‘‘(1) BANK.—The term ‘Bank’ means the

Federal Energy Bank established by sub-section (b).

‘‘(2) ENERGY OR WATER EFFICIENCYPROJECT.—The term ‘energy or water effi-ciency project’ means a project that assists aFederal agency in meeting or exceeding theenergy or water efficiency requirements of—

‘‘(A) this part;‘‘(B) title VIII;‘‘(C) subtitle F of title I of the Energy Pol-

icy Act of 1992 (42 U.S.C. 8262 et seq.); or‘‘(D) any applicable Executive order, in-

cluding Executive Order No. 13123.‘‘(3) FEDERAL AGENCY.—The term ‘Federal

agency’ means—‘‘(A) an Executive agency (as defined in

section 105 of title 5, United States Code);‘‘(B) the United States Postal Service;‘‘(C) Congress and any other entity in the

legislative branch; and‘‘(D) a Federal court and any other entity

in the judicial branch.‘‘(b) ESTABLISHMENT OF BANK.—‘‘(1) IN GENERAL.—There is established in

the Treasury of the United States a fund tobe known as the ‘Federal Energy Bank’, con-sisting of—

‘‘(A) such amounts as are deposited in theBank under paragraph (2);

‘‘(B) such amounts as are repaid to theBank under subsection (c)(2)(D); and

‘‘(C) any interest earned on investment ofamounts in the Bank under paragraph (3).

‘‘(2) DEPOSITS IN BANK.—‘‘(A) IN GENERAL.—Subject to the avail-

ability of appropriations and to subpara-graph (B), the Secretary of the Treasuryshall deposit in the Bank an amount equal to$250,000,000 in fiscal year 2003 and in each fis-cal year thereafter.

‘‘(B) MAXIMUM AMOUNT IN BANK.—Depositsunder subparagraph (A) shall cease beginningwith the fiscal year following the fiscal yearin which the amounts in the Bank (including

CONGRESSIONAL RECORD — SENATE S1471March 5, 2002amounts on loan from the Bank) becomeequal to or exceed $1,000,000,000.

‘‘(3) INVESTMENT OF AMOUNTS.—The Sec-retary of the Treasury shall invest such por-tion of the Bank as is not, in the judgmentof the Secretary, required to meet currentwithdrawals. Investments may be made onlyin interest-bearing obligations of the UnitedStates.

‘‘(c) LOANS FROM THE BANK.—‘‘(1) IN GENERAL.—The Secretary of the

Treasury shall transfer from the Bank to theSecretary such amounts as are appropriatedto carry out the loan program under para-graph (2).

‘‘(2) LOAN PROGRAM.—‘‘(A) ESTABLISHMENT.—‘‘(i) IN GENERAL.—In accordance with sub-

section (d), the Secretary, in consultationwith the Secretary of Defense, the Adminis-trator of General Services, and the Directorof the Office of Management and Budget,shall establish a program to make loans ofamounts in the Bank to any Federal agencythat submits an application satisfactory tothe Secretary in order to pay the costs of aproject described in subparagraph (C).

‘‘(ii) COMMENCEMENT OF OPERATIONS.—TheSecretary may begin—

‘‘(I) accepting applications for loans fromthe Bank in fiscal year 2002; and

‘‘(II) making loans from the Bank in fiscalyear 2003.

‘‘(B) ENERGY SAVINGS PERFORMANCE CON-TRACTING FUNDING.—To the extent prac-ticable, an agency shall not submit a projectfor which energy performance contractingfunding is available and is acceptable to theFederal agency under title VIII.

‘‘(C) PURPOSES OF LOAN.—‘‘(i) IN GENERAL.—A loan from the Bank

may be used to pay—‘‘(I) the costs of an energy or water effi-

ciency project, or a renewable or alternativeenergy project, for a new or existing Federalbuilding (including selection and design ofthe project);

‘‘(II) the costs of an energy metering planand metering equipment installed pursuantto section 543(e) or for the purpose ofverification of the energy savings under anenergy savings performance contract undertitle VIII; or

‘‘(III) at the time of contracting, the costsof cofunding of an energy savings perform-ance contract (including a utility energyservice agreement) in order to shorten thepayback period of the project that is the sub-ject of the energy savings performance con-tract.

‘‘(ii) LIMITATION.—A Federal agency mayuse not more than 10 percent of the amountof a loan under subclause (I) or (II) of clause(i) to pay the costs of administration andproposal development (including data collec-tion and energy surveys).

‘‘(iii) RENEWABLE AND ALTERNATIVE ENERGYPROJECTS.—Not more than 25 percent of theamount on loan from the Bank at any timemay be loaned for renewable energy and al-ternative energy projects (as defined by theSecretary in accordance with applicable law(including Executive Orders)).

‘‘(D) REPAYMENTS.—‘‘(i) IN GENERAL.—Subject to clauses (ii)

through (iv), a Federal agency shall repay tothe Bank the principal amount of a loan plusinterest at a rate determined by the Presi-dent, in consultation with the Secretary andthe Secretary of the Treasury.

‘‘(ii) WAIVER OR REDUCTION OF INTEREST.—The Secretary may waive or reduce the rateof interest required to be paid under clause(i) if the Secretary determines that paymentof interest by a Federal agency at the ratedetermined under that clause is not requiredto fund the operations of the Bank.

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

‘‘(iv) INSUFFICIENCY OF APPROPRIATIONS.—‘‘(I) REQUEST FOR APPROPRIATIONS.—As part

of the budget request of the Federal agencyfor each fiscal year, the head of each Federalagency shall submit to the President a re-quest for such amounts as are necessary tomake such repayments as are expected to be-come due in the fiscal year under this sub-paragraph.

‘‘(II) SUSPENSION OF REPAYMENT REQUIRE-MENT.—If, for any fiscal year, sufficient ap-propriations are not made available to a Fed-eral agency to make repayments under thissubparagraph, the Bank shall suspend the re-quirement of repayment under this subpara-graph until such appropriations are madeavailable.

‘‘(E) FEDERAL AGENCY ENERGY BUDGETS.—Until a loan is repaid, a Federal agencybudget submitted by the President to Con-gress for a fiscal year shall not be reduced bythe value of energy savings accrued as a re-sult of any energy conservation measure im-plemented using amounts from the Bank.

‘‘(F) NO RESCISSION OR REPROGRAMMING.—AFederal agency shall not rescind or repro-gram loan amounts made available from theBank except as permitted under guidelinesissued under subparagraph (G).

‘‘(G) GUIDELINES.—The Secretary shallissue guidelines for implementation of theloan program under this paragraph, includ-ing selection criteria, maximum loanamounts, and loan repayment terms.

‘‘(d) SELECTION CRITERIA.—‘‘(1) IN GENERAL.—The Secretary shall es-

tablish criteria for the selection of projectsto be awarded loans in accordance with para-graph (2).

‘‘(2) SELECTION CRITERIA.—‘‘(A) IN GENERAL.—The Secretary may

make loans from the Bank only for a projectthat—

‘‘(i) is technically feasible;‘‘(ii) is determined to be cost-effective

using life cycle cost methods established bythe Secretary;

‘‘(iii) includes a measurement and manage-ment component, based on the measurementand verification protocols of the Departmentof Energy, to—

‘‘(I) commission energy savings for newand existing Federal facilities;

‘‘(II) monitor and improve energy effi-ciency management at existing Federal fa-cilities; and

‘‘(III) verify the energy savings under anenergy savings performance contract undertitle VIII; and

‘‘(iv)(I) in the case of renewable energy oralternative energy project, has a simple pay-back period of not more than 15 years; and

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

‘‘(B) PRIORITY.—In selecting projects, theSecretary shall give priority to projectsthat—

‘‘(i) are a component of a comprehensiveenergy management project for a Federal fa-cility; and

‘‘(ii) are designed to significantly reducethe energy use of the Federal facility.

‘‘(e) REPORTS AND AUDITS.—‘‘(1) REPORTS TO THE SECRETARY.—Not later

than 1 year after the completion of installa-tion of a project that has a cost of more than$1,000,000, and annually thereafter, a Federalagency shall submit to the Secretary a re-port that—

‘‘(A) states whether the project meets orfails to meet the energy savings projectionsfor the project; and

‘‘(B) for each project that fails to meet theenergy savings projections, states the rea-sons for the failure and describes proposedremedies.

‘‘(2) AUDITS.—The Secretary may audit, orrequire a Federal agency that receives a loanfrom the Bank to audit, any project financedwith amounts from the Bank to assess theperformance of the project.

‘‘(3) REPORTS TO CONGRESS.—At the end ofeach fiscal year, the Secretary shall submitto Congress a report on the operations of theBank, including a statement of—

‘‘(A) the total receipts by the Bank;‘‘(B) the total amount of loans from the

Bank to each Federal agency; and‘‘(C) the estimated cost and energy savings

resulting from projects funded with loansfrom the Bank.

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tosuch sums as are necessary to carry out thissection.’’.SEC. 919. ENERGY AND WATER SAVING MEAS-

URES IN CONGRESSIONAL BUILD-INGS.

(a) IN GENERAL.—Part 3 of title V of theNational Energy Conservation Policy Act isamended by adding at the end:‘‘SEC. 554. ENERGY AND WATER SAVINGS MEAS-

URES IN CONGRESSIONAL BUILD-INGS.

‘‘(a) IN GENERAL.—The Architect of theCapitol—

‘‘(1) shall develop, update, and implement acost-effective energy conservation and man-agement plan (referred to in this section asthe ‘plan’) for all facilities administered bythe Congress (referred to in this section as‘congressional buildings’) to meet the energyperformance requirements for Federal build-ings established under section 543(a)(1).

‘‘(2) shall submit the plan to Congress, notlater than 180 days after the date of enact-ment of this section.

‘‘(b) PLAN REQUIREMENTS.—The plan shallinclude—

‘‘(1) a description of the life-cycle costanalysis used to determine the cost-effec-tiveness of proposed energy efficiencyprojects;

‘‘(2) a schedule of energy surveys to ensurecomplete surveys of all congressional build-ings every five years to determine the costand payback period of energy and water con-servation measures;

‘‘(3) a strategy for installation of life cyclecost effective energy and water conservationmeasures;

‘‘(4) the results of a study of the costs andbenefits of installation of submetering incongressional buildings; and

‘‘(5) information packages and ‘how-to’guides for each Member and employing au-thority of Congress that detail simple, cost-effective methods to save energy and tax-payer dollars in the workplace.

‘‘(c) CONTRACTING AUTHORITY.—TheArchitect—

‘‘(1) may contract with nongovernmentalentities and use private sector capital to fi-nance energy conservation projects and meetenergy performance requirements; and

‘‘(2) may use innovative contracting meth-ods that will attract private sector fundingfor the installation of energy efficient andrenewable energy technology, such as energysavings performance contracts described intitle VIII.

‘‘(d) CAPITOL VISITOR CENTER.—TheArchitect—

‘‘(1) shall ensure that state-of-the-art en-ergy efficiency and renewable energy tech-nologies are used in the construction and de-sign of the Visitor Center; and

CONGRESSIONAL RECORD — SENATES1472 March 5, 2002‘‘(2) shall include in the Visitor Center an

exhibit on the energy efficiency and renew-able energy measures used in congressionalbuildings.

‘‘(e) ANNUAL REPORT.—The Architect shallsubmit to Congress annually a report on con-gressional energy management and con-servation programs required under this sec-tion that describes in detail—

‘‘(1) energy expenditures and savings esti-mates for each facility;

‘‘(2) energy management and conservationprojects; and

‘‘(3) future priorities to ensure compliancewith this section.’’.

(b) REPEAL.—Section 310 of the LegislativeBranch Appropriations Act, 1999 (40 U.S.C.166i), is repealed.

Subtitle C—Industrial Efficiency andConsumer Products

SEC. 921. VOLUNTARY COMMITMENTS TO RE-DUCE INDUSTRIAL ENERGY INTEN-SITY.

(a) VOLUNTARY AGREEMENTS.—The Sec-retary of Energy shall enter into voluntaryagreements with one or more persons in in-dustrial sectors that consume significantamounts of primary energy per unit of phys-ical output to reduce the energy intensity oftheir production activities.

(b) GOAL.—Voluntary agreements underthis section shall have a goal of reducing en-ergy intensity by not less than 2.5 percenteach year from 2002 through 2012.

(c) RECOGNITION.—The Secretary of Energy,in cooperation with the Administrator of theEnvironmental Protection Agency and otherappropriate federal agencies, shall developmechanisms to recognize and publicize theachievements of participants in voluntaryagreements under this section.

(d) DEFINITION.—In this section, the term‘‘energy intensity’’ means the primary en-ergy consumed per unit of physical output inan industrial process.

(e) TECHNICAL ASSISTANCE.—An entity thatenters into an agreement under this sectionand continues to make a good faith effort toachieve the energy efficiency goals specifiedin the agreement shall be eligible to receivefrom the Secretary a grant or technical as-sistance as appropriate to assist in theachievement of those goals.

(f) REPORT.—Not later than June 30, 2008and June 30, 2012, the Secretary shall submitto Congress a report that evaluates the suc-cess of the voluntary agreements, with inde-pendent verification of a sample of the en-ergy savings estimates provided by partici-pating firms.SEC. 922. AUTHORITY TO SET STANDARDS FOR

COMMERCIAL PRODUCTS.Part B of title III of the Energy Policy and

Conservation Act (42 U.S.C. 6291 et seq.) isamended as follows:

(1) In the heading for such part, by insert-ing ‘‘AND COMMERCIAL’’ after ‘‘CON-SUMER’’.

(2) In section 321(2), by inserting ‘‘or com-mercial’’ after ‘‘consumer’’.

(3) In paragraphs (4), (5), and (15) of section321, by striking ‘‘consumer’’ each place it ap-pears and inserting ‘‘covered’’.

(4) In section 322(a), by inserting ‘‘or com-mercial’’ after ‘‘consumer’’ the first place itappears in the material preceding paragraph(1).

(5) In section 322(b), by inserting ‘‘or com-mercial’’ after ‘‘consumer’’ each place it ap-pears.

(6) In section 322 (b)(1)(B) and (b)(2)(A), byinserting ‘‘or per-business in the case of acommercial product’’ after ‘‘per-household’’each place it appears.

(7) In section 322 (b)(2)(A), by inserting ‘‘orbusinesses in the case of commercial prod-ucts’’ after ‘‘households’’ each place it ap-pears.

(8) In section 322 (B)(2)(C)—(A) by striking ‘‘term’’ and inserting

‘‘terms’’; and(B) by inserting ‘‘and ‘business’ ’’ after

‘‘ ‘household’ ’’.(9) In section 323 (b)(1)(B) by inserting ‘‘or

commercial’’ after ‘‘consumer’’.SEC. 923. ADDITIONAL DEFINITIONS.

Section 321 of the Energy Policy and Con-servation Act (42 U.S.C. 6291) is amended byadding at the end the following:

‘‘(32) The term ‘battery charger’ means adevice that charges batteries for consumerproducts.

‘‘(33) The term ‘commercial refrigerator,freezer and refrigerator-freezer’ means a re-frigerator, freezer or refrigerator-freezerthat—

‘‘(A) is not a consumer product regulatedunder this Act; and

‘‘(B) incorporates most components in-volved in the vapor-compression cycle andthe refrigerated compartment in a singlepackage.

‘‘(34) The term ‘external power supply’means an external power supply circuit thatis used to convert household electric currentinto either DC current or lower-voltage ACcurrent to operate a consumer product.

‘‘(35) The term ‘illuminated exit sign’means a sign that—

‘‘(A) is designed to be permanently fixed inplace to identify an exit; and

‘‘(B) consists of—‘‘(i) an electrically powered integral light

source that illuminates the legend ‘EXIT’and any directional indicators; and

‘‘(ii) provides contrast between the legend,any directional indicators, and the back-ground.

‘‘(36)(A) Except as provided in subsection(B), the term ‘low-voltage dry-type trans-former’ means a transformer that—

‘‘(i) has an input voltage of 600 volts orless;

‘‘(ii) is air-cooled;‘‘(iii) does not use oil as a coolant; and‘‘(iv) is rated for operation at a frequency

of 60 Hertz.‘‘(B) The term ‘low-voltage dry-type trans-

former’ does not include—‘‘(i) transformers with multiple voltage

taps, with the highest voltage tap equalingat least 20 percent more than the lowestvoltage tap;

‘‘(ii) transformers that are designed to beused in a special purpose application, such astransformers commonly known as drivetransformers, rectifier transformers,autotrans- formers, Uninterruptible PowerSystem transformers, impedance trans-formers, harmonic transformers, regulatingtransformers, sealed and nonventilatingtransformers, machine tool transformers,welding transformers, grounding trans-formers, or testing transformers; or

‘‘(iii) any transformer not listed in clause(ii) that is excluded by the Secretary by rulebecause the transformer is designed for aspecial application and the application ofstandards to the transformer would not re-sult in significant energy savings.

‘‘(37) The term ‘‘standby mode’’ means thelowest amount of electric power used by ahousehold appliance when not performing itsactive functions, as defined on an individualproduct basis by the Secretary.

‘‘(38) The term ‘torchiere’ means a portableelectric lamp with a reflector bowl that di-rects light upward so as to give indirect illu-mination.

‘‘(39) The term ‘transformer’ means a de-vice consisting of 2 or more coils of insulatedwire that transfers alternating current byelectromagnetic induction from one coil toanother to change the original voltage orcurrent value.

‘‘(40) The term ‘unit heater’ means a self-contained fan-type heater designed to be in-stalled within the heated space, except thatsuch term does not include a warm air fur-nace.SEC. 924. ADDITIONAL TEST PROCEDURES.

(a) EXIT SIGNS.—Section 323(b) of the En-ergy Policy and Conservation Act (42 U.S.C.6293) is amended by adding at the end the fol-lowing:

‘‘(9) Test procedures for illuminated exitsigns shall be based on the test method usedunder the Energy Star program of the Envi-ronmental Protection Agency for illumi-nated exit signs, as in effect on the date ofenactment of this paragraph.

‘‘(10) Test procedures for low voltage dry-type distribution transformers shall be basedon the ‘Standard Test Method for Measuringthe Energy Consumption of DistributionTransformers’ prescribed by the NationalElectrical Manufacturers Association(NEMA TP 2–1998). The Secretary may re-view and revise this test procedure based onfuture revisions to such standard test meth-od.

(b) ADDITIONAL CONSUMER AND COMMERCIALPRODUCTS.—Section 323 of the Energy Policyand Conservation Act (42 U.S.C. 6293) is fur-ther amended by adding at the end the fol-lowing:

‘‘(f) ADDITIONAL CONSUMER AND COMMER-CIAL PRODUCTS.—The Secretary shall within24 months after the date of enactment of thissubsection prescribe testing requirementsfor suspended ceiling fans, refrigerated bot-tled or canned beverage vending machines,commercial unit heaters, and commercial re-frigerators, freezers and refrigerator-freez-ers. Such testing requirements shall be basedon existing test procedures used in industryto the extent practical and reasonable. Inthe case of suspended ceiling fans, such testprocedures shall include efficiency at bothmaximum output and at an output no morethan 50 percent of the maximum output.’’.SEC. 925. ENERGY LABELING.

(a) RULEMAKING ON EFFECTIVENESS OF CON-SUMER PRODUCT LABELING.—Paragraph (2) ofsection 324(a) of the Energy Policy and Con-servation Act (42 U.S.C. 6294(a)(2)) is amend-ed by adding at the end the following:

‘‘(F) Not later than three months after thedate of enactment of this subparagraph, theCommission shall initiate a rulemaking toconsider the effectiveness of the current con-sumer products labeling program in assistingconsumers in making purchasing decisionsand improving energy efficiency and to con-sider changes to the labeling rules thatwould improve the effectiveness of consumerproduct labels. Such rulemaking shall becompleted within 15 months of the date ofenactment of this subparagraph.’’.

(b) RULEMAKING ON LABELING FOR ADDI-TIONAL PRODUCTS.—Section 324(a) of the En-ergy Policy and Conservation Act (42 U.S.C.6294(a)) is further amended by adding at theend the following:

‘‘(5) The Secretary shall within 6 monthsafter the date on which energy conservationstandards are prescribed by the Secretary forcovered products referred to in subsections(u) and (v) of section 325, and within 18months of enactment of this paragraph forproducts referred to in subsections (w)through (y) of section 325, prescribe, by rule,labeling requirements for such products. La-beling requirements adopted under this para-graph shall take effect on the same date asthe standards set pursuant to sections 325(v)through (y).SEC. 926. ENERGY STAR PROGRAM.

The Energy Policy and Conservation Act(42 U.S.C. 6201 and following) is amended byinserting after section 324 the following:

CONGRESSIONAL RECORD — SENATE S1473March 5, 2002‘‘ENERGY STAR PROGRAM.

‘‘SEC. 324A. (a) IN GENERAL.—There is es-tablished at the Department of Energy andthe Environmental Protection Agency a pro-gram to identify and promote energy-effi-cient products and buildings in order to re-duce energy consumption, improve energysecurity, and reduce pollution through label-ing of products and buildings that meet thehighest energy efficiency standards. Respon-sibilities under the program shall be dividedbetween the Department of Energy and theEnvironmental Protection Agency con-sistent with the terms of agreements be-tween the two agencies. The Administratorand the Secretary shall—

‘‘(1) promote Energy Star compliant tech-nologies as the preferred technologies in themarketplace for achieving energy efficiencyand to reduce pollution;

‘‘(2) work to enhance public awareness ofthe Energy Star label;

‘‘(3) preserve the integrity of the EnergyStar label; and

‘‘(4) solicit the comments of interested par-ties in establishing a new Energy Star prod-uct category or in revising a product cat-egory, and upon adoption of a new or revisedproduct category provide an explanation ofthe decision that responds to significant pub-lic comments.’’.

SEC. 927. ENERGY CONSERVATION STANDARDSFOR CENTRAL AIR CONDITIONERSAND HEAT PUMPS.

Section 325(d) of the Energy Policy andConservation Act (42 U.S.C. 6295(d)) isamended to read as follows:

‘‘(1) Except as provided in paragraph (3),the seasonal energy efficiency ratio of cen-tral air conditioners and central air condi-tioning heat pumps manufactured on or afterJanuary 23, 2006 shall be no less than 13.0.

‘‘(2) Except as provided in paragraph (4),the heating seasonal performance factor ofcentral air conditioning heat pumps manu-factured on or after January 23, 2006 shall beno less than 7.7.

‘‘(3) The seasonal energy efficiency ratio ofcentral air conditioners or central air condi-tioning heat pumps manufactured on or afterJanuary 23, 2006 shall be no less than 12.0 forproducts that—

‘‘(A) have a rated cooling capacity equal toor less than 30,000 Btu per hour;

‘‘(B) have an outdoor or indoor unit havingat least two overall exterior dimensions oran overall displacement that—

‘‘(i) is substantially smaller than those ofother units that are currently installed insite-built single family homes, and of a simi-lar cooling or heating capacity, and

‘‘(ii) if increased would result in a signifi-cant increase in the cost of installation orwould result in a significant loss in the util-ity of the product to the consumer; and

‘‘(C) were available for purchase in theUnited States as of December 1, 2000.

‘‘(4) The heating seasonal performance fac-tor of central air conditioning heat pumpsmanufactured on or after January 25, 2006shall not be less than 7.4 for products thatmeet the criteria in paragraph (3).

‘‘(5) The Secretary may postpone the re-quirements of paragraphs (3) and (4) for spe-cific product types until a date no later thanJanuary 23, 2010.

‘‘(6) The Secretary shall publish a finalrule not later than January 1, 2006 to deter-mine whether the standards in effect for cen-tral air conditioners and central air condi-tioning heat pumps should be amended. Suchrule shall provide that any amendment shallapply to products manufactured on or afterJanuary 1, 2011.’’.

SEC. 928. ENERGY CONSERVATION STANDARDSFOR ADDITIONAL CONSUMER ANDCOMMERCIAL PRODUCTS.


‘‘(u) STANDBY MODE ELECTRIC ENERGY CON-SUMPTION.—

‘‘(1) INITIAL RULEMAKING.—‘‘(A) The Secretary shall, within 18 months

after the date of enactment of this sub-section, prescribe by notice and comment,definitions of standby mode and test proce-dures for the standby mode power use of bat-tery chargers and external power supplies. Inestablishing these test procedures, the Sec-retary shall consider, among other factors,existing test procedures used for measuringenergy consumption in standby mode and as-sess the current and projected future marketfor battery chargers and external power sup-plies. This assessment shall include esti-mates of the significance of potential energysavings from technical improvements tothese products and suggested product classesfor standards. Prior to the end of this timeperiod, the Secretary shall hold a scopingworkshop to discuss and receive commentson plans for developing energy conservationstandards for standby mode energy use forthese products.

‘‘(B) The Secretary shall, within 3 yearsafter the date of enactment of this sub-section, issue a final rule that determineswhether energy conservation standards shallbe promulgated for battery chargers and ex-ternal power supplies or classes thereof. Foreach product class, any such standards shallbe set at the lowest level of standby energyuse that—

(i) meets the criteria of subsections (o), (p),(q), (r), (s) and (t); and

(ii) will result in significant overall annualenergy savings, considering both standbymode and other operating modes.

‘‘(2) DESIGNATION OF ADDITIONAL COVEREDPRODUCTS.—

‘‘(A) Not later than 180 days after the dateof enactment of this subsection, the Sec-retary shall publish for public comment andpublic hearing a notice to determine whetherany noncovered products should be des-ignated as covered products for the purposeof instituting a rulemaking under this sec-tion to determine whether an energy con-servation standard restricting standby modeenergy consumption, should be promulgated;providing that any restriction on standbymode energy consumption shall be limited tomajor sources of such consumption.

‘‘(B) In making the determinations pursu-ant to subparagraph (A) of whether to des-ignate new covered products and instituterulemakings, the Secretary shall, amongother relevant factors and in addition to thecriteria in section 322(b), consider—

‘‘(i) standby mode power consumption com-pared to overall product energy consump-tion; and

‘‘(ii) the priority and energy savings poten-tial of standards which may be promulgatedunder this subsection compared to other re-quired rulemakings under this section andthe available resources of the Department toconduct such rulemakings.

‘‘(C) Not later than one year after the dateof enactment of this subsection, the Sec-retary shall issue a determination of anynew covered products for which he intends toinstitute rulemakings on standby mode pur-suant to this section and he shall state thedates by which he intends to initiate thoserulemakings.

‘‘(3) REVIEW OF STANDBY ENERGY USE IN COV-ERED PRODUCTS.—In determining pursuant tosection 323 whether test procedures and en-ergy conservation standards pursuant to sec-tion 325 should be revised, the Secretary

shall consider for covered products which aremajor sources of standby mode energy con-sumption whether to incorporate standbymode into such test procedures and energyconservation standards, taking into account,among other relevant factors, the criteriafor non-covered products in subparagraph (B)of this subsection.

‘‘(4) RULEMAKING FOR STANDBY MODE.—‘‘(A) Any rulemaking instituted under this

subsection or for covered products under thissection which restricts standby mode powerconsumption shall be subject to the criteriaand procedures for issuing energy conserva-tion standards set forth in section 325 andthe criteria set forth in paragraph 2(B) ofthis subsection.

‘‘(B) No standard can be proposed for newcovered products or covered products in astandby mode unless the Secretary has pro-mulgated applicable test procedures for eachproduct pursuant to section 323.

‘‘(C) The provisions of section 327 shallapply to new covered products which are sub-ject to the rulemakings for standby modeafter a final rule has been issued.

‘‘(5) EFFECTIVE DATE.—Any standard pro-mulgated under this subsection shall be ap-plicable to products manufactured or im-ported three years after the date of promul-gation.

‘‘(6) VOLUNTARY PROGRAMS TO REDUCESTANDBY MODE ENERGY USE.—The Secretaryand the Administrator shall collaborate anddevelop programs, including programs pursu-ant to section 324A and other voluntary in-dustry agreements or codes of conduct,which are designed to reduce standby modeenergy use.

‘‘(v) SUSPENDED CEILING FANS, VENDINGMACHINES, UNIT HEATERS, AND COMMERCIALREFRIGERATORS, FREEZERS AND REFRIG-ERATOR-FREEZERS.—The Secretary shallwithin 24 months after the date on whichtesting requirements are prescribed by theSecretary pursuant to section 323(f), pre-scribe, by rule, energy conservation stand-ards for suspended ceiling fans, refrigeratedbottled or canned beverage vending ma-chines, unit heaters, and commercial refrig-erators, freezers and refrigerator-freezers. Inestablishing standards under this subsection,the Secretary shall use the criteria and pro-cedures contained in subsections (l) and (m).Any standard prescribed under this sub-section shall apply to products manufactured3 years after the date of publication of afinal rule establishing such standard.

‘‘(w) ILLUMINATED EXIT SIGNS.—Illumi-nated exit signs manufactured on or afterJanuary 1, 2005 shall meet the Energy StarProgram performance requirements for illu-minated exit signs prescribed by the Envi-ronmental Protection Agency as in effect onthe date of enactment of this subsection.

‘‘(x) TORCHIERES.—Torchieres manufac-tured on or after January 1, 2005—

‘‘(1) shall consume not more than 190 wattsof power; and

‘‘(2) shall not be capable of operating withlamps that total more than 190 watts.

‘‘(y) LOW VOLTAGE DRY-TYPE TRANS-FORMERS.—The efficiency of low voltage dry-type transformers manufactured on or afterJanuary 1, 2005 shall be the Class I EfficiencyLevels for low voltage dry-type transformersspecified in Table 4–2 of the ‘Guide for Deter-mining Energy Efficiency for DistributionTransformers’ published by the NationalElectrical Manufacturers Association(NEMA TP–1–1996).’’.SEC. 929. CONSUMER EDUCATION ON ENERGY EF-

FICIENCY BENEFITS OF AIR CONDI-TIONING, HEATING, AND VENTILA-TION MAINTENANCE.


CONGRESSIONAL RECORD — SENATES1474 March 5, 2002‘‘(c) HVAC MAINTENANCE.—(1) For the pur-

pose of ensuring that installed air condi-tioning and heating systems operate at theirmaximum rated efficiency levels, the Sec-retary shall, within 180 days of the date ofenactment of this subsection, carry out aprogram to educate homeowners and smallbusiness owners concerning the energy sav-ings resulting from properly conductedmaintenance of air conditioning, heating,and ventilating systems.

‘‘(2) The Secretary may carry out the pro-gram in cooperation with industry trade as-sociations, industry members, and energy ef-ficiency organizations.’’.

Subtitle D—Housing EfficiencySEC. 931. CAPACITY BUILDING FOR ENERGY EFFI-

CIENT, AFFORDABLE HOUSING.Section 4(b) of the HUD Demonstration

Act of 1993 (42 U.S.C. 9816 note) is amended—(1) in paragraph (1), by inserting before the

semicolon at the end the following: ‘‘, includ-ing capabilities regarding the provision ofenergy efficient, affordable housing and resi-dential energy conservation measures’’; and

(2) in paragraph (2), by inserting before thesemicolon the following: ‘‘, including suchactivities relating to the provision of energyefficient, affordable housing and residentialenergy conservation measures that benefitlow-income families’’.SEC. 932. INCREASE OF CDBG PUBLIC SERVICES

CAP FOR ENERGY CONSERVATIONAND EFFICIENCY ACTIVITIES.

Section 105(a)(8) of the Housing and Com-munity Development Act of 1974 (42 U.S.C.5305(a)(8)) is amended—

(1) by inserting ‘‘or efficiency’’ after ‘‘en-ergy conservation’’;

(2) by striking ‘‘, and except that’’ and in-serting ‘‘; except that’’; and

(3) by inserting before the period at the endthe following: ‘‘; and except that each per-centage limitation under this paragraph onthe amount of assistance provided under thistitle that may be used for the provision ofpublic services is hereby increased by 10 per-cent, but such percentage increase may beused only for the provision of public servicesconcerning energy conservation or effi-ciency’’.SEC. 933. FHA MORTGAGE INSURANCE INCEN-

TIVES FOR ENERGY EFFICIENTHOUSING.

(a) SINGLE FAMILY HOUSING MORTGAGE IN-SURANCE.—Section 203(b)(2) of the NationalHousing Act (12 U.S.C. 1709(b)(2)) is amended,in the first undesignated paragraph begin-ning after subparagraph (B)(iii) (relating tosolar energy systems)—

(1) by inserting ‘‘or paragraph (10)’’; and(2) by striking ‘‘20 percent’’ and inserting

‘‘30 percent’’.(b) MULTIFAMILY HOUSING MORTGAGE IN-

SURANCE.—Section 207(c) of the NationalHousing Act (12 U.S.C. 1713(c)) is amended, inthe second undesignated paragraph begin-ning after paragraph (3) (relating to solar en-ergy systems and residential energy con-servation measures), by striking ‘‘20 per-cent’’ and inserting ‘‘30 percent’’.

(c) COOPERATIVE HOUSING MORTGAGE INSUR-ANCE.—Section 213(p) of the National Hous-ing Act (12 U.S.C. 1715e(p)) is amended bystriking ‘‘20 per centum’’ and inserting ‘‘30percent’’.

(d) REHABILITATION AND NEIGHBORHOODCONSERVATION HOUSING MORTGAGE INSUR-ANCE.—Section 220(d)(3)(B)(iii) of the Na-tional Housing Act (12 U.S.C.1715k(d)(3)(B)(iii)) is amended by striking ‘‘20per centum’’ and inserting ‘‘30 percent’’.

(e) LOW-INCOME MULTIFAMILY HOUSINGMORTGAGE INSURANCE.—Section 221(k) of theNational Housing Act (12 U.S.C. 1715l(k)) isamended by striking ‘‘20 per centum’’ and in-serting ‘‘30 percent’’.

(f) ELDERLY HOUSING MORTGAGE INSUR-ANCE.—The proviso at the end of section213(c)(2) of the National Housing Act (12U.S.C. 1715v(c)(2)) is amended by striking ‘‘20per centum’’ and inserting ‘‘30 percent’’.

(g) CONDOMINIUM HOUSING MORTGAGE IN-SURANCE.—Section 234(j) of the NationalHousing Act (12 U.S.C. 1715y(j)) is amendedby striking ‘‘20 per centum’’ and inserting‘‘30 percent’’.SEC. 934. PUBLIC HOUSING CAPITAL FUND.

Section 9(d)(1) of the United States Hous-ing Act of 1937 (42 U.S.C. 1437g(d)(1)) isamended—

(1) in subparagraph (I), by striking ‘‘and’’at the end;

(2) in subparagraph (K), by striking the pe-riod at the end and inserting ‘‘; and’’; and

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

‘‘(L) improvement of energy and water-useefficiency by installing fixtures and fittingsthat conform to the American Society of Me-chanical Engineers/American NationalStandards Institute standards A112.19.2–1998and A112.18.1–2000, or any revision thereto,applicable at the time of installation, and byincreasing energy efficiency and water con-servation by such other means as the Sec-retary determines are appropriate.’’.SEC. 935. GRANTS FOR ENERGY-CONSERVING IM-

PROVEMENTS FOR ASSISTED HOUS-ING.

Section 251(b)(1) of the National EnergyConservation Policy Act (42 U.S.C. 8231(1)) isamended—

(1) by striking ‘‘financed with loans’’ andinserting ‘‘assisted’’;

(2) by inserting after ‘‘1959,’’ the following:‘‘which are eligible multifamily housingprojects (as such term is defined in section512 of the Multifamily Assisted Housing Re-form and Affordability Act of 1997 (42 U.S.C.1437f note) and are subject to a mortgage re-structuring and rental assistance sufficiencyplans under such Act,’’; and

(3) by inserting after the period at the endof the first sentence the following new sen-tence: ‘‘Such improvements may also includethe installation of energy and water con-serving fixtures and fittings that conform tothe American Society of Mechanical Engi-neers/American National Standards Institutestandards A112.19.2–1998 and A112.18.1–2000, orany revision thereto, applicable at the timeof installation.’’.SEC. 936. NORTH AMERICAN DEVELOPMENT

BANK.Part 2 of subtitle D of title V of the North

American Free Trade Agreement Implemen-tation Act (22 U.S.C. 290m–290m–3) is amend-ed by adding at the end the following:‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLI-

CIES.‘‘Consistent with the focus of the Bank’s

Charter on environmental infrastructureprojects, the Board members representingthe United States should use their voice andvote to encourage the Bank to financeprojects related to clean and efficient en-ergy, including energy conservation, thatprevent, control, or reduce environmentalpollutants or contaminants.’’.

DIVISION D—INTEGRATION OF ENERGYPOLICY AND CLIMATE CHANGE POLICYTITLE X—CLIMATE CHANGE POLICYFORMULATION

Subtitle A—Global WarmingSEC. 1001. SENSE OF CONGRESS ON GLOBAL

WARMING.(a) FINDINGS. The Congress makes the fol-

lowing findings:(1) Evidence continues to build that in-

creases in atmospheric concentrations ofman-made greenhouse gases are contributingto global climate change.

(2) The Intergovernmental Panel on Cli-mate Change (IPCC) has concluded that‘‘there is new and stronger evidence thatmost of the warming observed over the last50 years is attributable to human activities’’and that the Earth’s average temperaturecan be expected to rise between 2.5 and 10.4degrees Fahrenheit in this century.

(3) The National Academy of Sciences con-firmed the findings of the IPCC, stating that‘‘the IPCC’s conclusion that most of the ob-served warming of the last 50 years is likelyto have been due to the increase of green-house gas concentrations accurately reflectsthe current thinking of the scientific com-munity on this issue’’ and that ‘‘there is gen-eral agreement that the observed warming isreal and particularly strong within the pasttwenty years’’.

(4) The IPCC has stated that in the last 40years, the global average sea level has risen,ocean heat content has increased, and snowcover and ice extent have decreased, whichthreatens to inundate low-lying island na-tions and coastal regions throughout theworld.

(5) The Environmental Protection Agencyhas found that global warming may harmthe United States by altering crop yields, ac-celerating sea level rise, and increasing thespread of tropical infectious diseases.

(6) In 1992, the United States ratified theUnited Nations Framework Convention ofClimate Change, done at New York on May 9,1992, the ultimate objective of which is the‘‘stabilization of greenhouse gas concentra-tions in the atmosphere at a level that wouldprevent dangerous anthropogenic inter-ference with the climate system’’, and whichstated in part ‘‘the Parties to the Conven-tion are to implement policies with the aimof returning . . . to their 1990 levels anthro-pogenic emissions of carbon dioxide andother greenhouse gases.’’

(7) There is a shared international respon-sibility to address this problem, as industrialnations are the largest historic and currentemitters of greenhouse gases and developingnations’ emissions will significantly increasein the future.

(8) The United Nations Framework Con-vention on Climate Change further statesthat ‘‘developed country Parties should takethe lead in combating climate change andthe adverse effects thereof’’, as these nationsare the largest historic and current emittersof greenhouse gases.

(9) Senate Resolution 98 of July 1997, whichexpressed that developing nations, especiallythe largest emitters, must also be includedin any future, binding climate change treatyand such a treaty must not result in seriousharm to the United States economy, shouldnot cause the United States to abandon itsshared responsibility to help find a solutionto the global climate change dilemma.

(10) American businesses need to know howgovernments worldwide will respond to thethreat of global warming.

(11) The United States has benefitted andwill continue to benefit from investments inthe research, development and deploymentof a range of clean energy and efficiencytechnologies that can mitigate global warm-ing and that can make the United Stateseconomy more productive, bolster energy se-curity, create jobs, and protect the environ-ment.

(b) SENSE OF CONGRESS.—It is the sense ofthe United States Congress that the UnitedStates should demonstrate internationalleadership and responsibility in mitigatingthe health, environmental, and economicthreats posed by global warming by:

(1) taking responsible action to ensure sig-nificant and meaningful reductions in emis-sions of greenhouse gases from all sectors;

CONGRESSIONAL RECORD — SENATE S1475March 5, 2002(2) creating flexible international and do-

mestic mechanisms, including joint imple-mentation, technology deployment, emis-sions trading and carbon sequestrationprojects that will reduce, avoid, and seques-ter greenhouse gas emissions; and

(3) participating in international negotia-tions, including putting forth a proposal atthe next meeting of the Conference of theParties, with the objective of securingUnited States’ participation in a revisedKyoto Protocol or other future binding cli-mate change agreements in a manner that isconsistent with the environmental objec-tives of the Framework Convention on Cli-mate Change, that protects the economic in-terests of the United States, and recognizesthe shared international responsibility foraddressing climate change, including devel-oping country participation.

Subtitle B—Climate Change StrategySEC. 1011. SHORT TITLE.

This title may be cited as the ‘‘ClimateChange Strategy and Technology InnovationAct of 2002’’.SEC. 1012. FINDINGS.

Congress finds that—(1) evidence continues to build that in-

creases in atmospheric concentrations ofgreenhouse gases are contributing to globalclimate change;

(2) in 1992, the Senate ratified the UnitedNations Framework Convention on ClimateChange, done at New York on May 9, 1992,the ultimate objective of which is the ‘‘sta-bilization of greenhouse gas concentrationsin the atmosphere at a level that would pre-vent dangerous anthropogenic interferencewith the climate system’’;

(3) although science currently cannot de-termine precisely what atmospheric con-centrations are ‘‘dangerous’’, the currenttrajectory of greenhouse gas emissions willlead to a continued rise in greenhouse gasconcentrations in the atmosphere, not sta-bilization;

(4) the remaining scientific uncertaintiescall for temperance of human actions, butnot inaction;

(5) greenhouse gases are associated with awide range of human activities, including en-ergy production, transportation, agriculture,forestry, manufacturing, buildings, andother activities;

(6) the economic consequences of poorlydesigned climate change response strategies,or of inaction, may cost the global economytrillions of dollars;

(7) a large share of this economic burdenwould be borne by the United States;

(8) stabilization of greenhouse gas con-centrations in the atmosphere will requiretransformational change in the global en-ergy system and other emitting sectors at analmost unimaginable level—a veritable in-dustrial revolution is required;

(9) such a revolution can occur only if therevolution is preceded by research and devel-opment that leads to bold technologicalbreakthroughs;

(10) over the decade preceding the date ofenactment of this Act—

(A) energy research and development budg-ets in the public and private sectors have de-clined precipitously and have not been fo-cused on the climate change response chal-lenge; and

(B) the investments that have been madehave not been guided by a comprehensivestrategy;

(11) the negative trends in research and de-velopment funding described in paragraph(10) must be reversed with a focus on notonly traditional energy research and devel-opment, but also bolder, breakthrough re-search;

(12) much more progress could be made onthe issue of climate change if the UnitedStates were to adopt a new approach for ad-dressing climate change that included, as anultimate long-term goal—

(A) stabilization of greenhouse gas con-centrations in the atmosphere at a level thatwould prevent dangerous anthropogenic in-terference with the climate system; and

(B) a response strategy with 4 key ele-ments consisting of—

(i) definition of interim emission mitiga-tion levels, that, coupled with specific miti-gation approaches and after taking into ac-count actions by other nations (if any),would result in stabilization of greenhousegas concentrations;

(ii) technology development, including—(I) a national commitment to double en-

ergy research and development by the UnitedStates public and private sectors; and

(II) in carrying out such research and de-velopment, a national commitment to pro-vide a high degree of emphasis on bold,breakthrough technologies that will makepossible a profound transformation of the en-ergy, transportation, industrial, agricul-tural, and building sectors of the UnitedStates;

(iii) climate adaptation research that—(I) focuses on response actions necessary to

adapt to climate change that may have al-ready occurred;

(II) focuses on response actions necessaryto adapt to climate change that may occurunder any future climate change scenario;

(iv) climate science research that—(I) builds on the substantial scientific un-

derstanding of climate change that exists asof the date of enactment of this Act;

(II) focuses on resolving the remaining sci-entific, technical, and economic uncertain-ties to aid in the development of sound re-sponse strategies; and

(13) inherent in each of the 4 key elementsof the response strategy is consideration ofthe international nature of the challenge,which will require—

(A) establishment of joint climate responsestrategies and joint research programs;

(B) assistance to developing countries andcountries in transition for building technicaland institutional capacities and incentivesfor addressing the challenge; and

(C) promotion of public awareness of theissue.SEC. 1013. PURPOSE.

The purpose of this title is to implementthe new approach described in section1012(12) by developing a national focal pointfor climate change response through—

(1) the establishment of the National Officeof Climate Change Response within the Exec-utive Office of the President to develop theUnited States Climate Change ResponseStrategy that—

(A) incorporates the 4 key elements of thatnew approach;

(B) is supportive of and integrated in theoverall energy, transportation, industrial,agricultural, forestry, and environmentalpolicies of the United States;

(C) takes into account—(i) the diversity of energy sources and

technologies;(ii) supply-side and demand-side solutions;

and(iii) national infrastructure, energy dis-

tribution, and transportation systems;(D) provides for the inclusion and equitable

participation of Federal, State, tribal, andlocal government agencies, nongovernmentalorganizations, academia, scientific bodies,industry, the public, and other interestedparties;

(E) incorporates new models of Federal-State cooperation;

(F) defines a comprehensive energy tech-nology research and development programthat—

(i) recognizes the important contributionsthat research and development programs inexistence on the date of enactment of thistitle make toward addressing the climatechange response challenge; and

(ii) includes an additional research and de-velopment agenda that focuses on the bold,breakthrough technologies that are criticalto the long-term stabilization of greenhousegas concentrations in the atmosphere;

(G) includes consideration of other effortsto address critical environmental and healthconcerns, including clean air, clean water,and responsible land use policies; and

(H) incorporates initiatives to promote thedeployment of clean energy technologies de-veloped in the United States and abroad;

(2) the establishment of the InteragencyTask Force, chaired by the Director of theWhite House Office, to serve as the primarymechanism through which the heads of Fed-eral agencies work together to develop andimplement the Strategy;

(3) the establishment of the Office of Cli-mate Change Technology within the Depart-ment of Energy—

(A) to manage, as its primary responsi-bility, an innovative research and develop-ment program that focuses on the bold,breakthrough technologies that are criticalto the long-term stabilization of greenhousegas concentrations in the atmosphere; and

(B) to provide analytical support and datato the White House Office, other agencies,and the public;

(4) the establishment of an independent re-view board—

(A) to review the Strategy and annuallyassess United States and internationalprogress toward the goal of stabilization ofgreenhouse gas concentrations in the atmos-phere at a level that would prevent dan-gerous anthropogenic interference with theclimate system; and

(B) to assess—(i) the performance of each Federal agency

that has responsibilities under the Strategy;and

(ii) the adequacy of the budget of each suchFederal agency to fulfill the responsibilitiesof the Federal agency under the Strategy;and

(5) the establishment of offices in, or thecarrying out of activities by, the Depart-ment of Agriculture, the Department ofTransportation, the Department of Com-merce, the Environmental Protection Agen-cy, and other Federal agencies as necessaryto carry out this title.SEC. 1014. DEFINITIONS.

In this title:(1) CLIMATE-FRIENDLY TECHNOLOGY.—The

term ‘‘climate-friendly technology’’ meansany energy supply or end-use technologythat, over the life of the technology andcompared to similar technology in commer-cial use as of the date of enactment of thisAct—

(A) results in reduced emissions of green-house gases;

(B) may substantially lower emissions ofother pollutants; and

(C) may generate substantially smaller orless hazardous quantities of solid or liquidwaste.

(2) DEPARTMENT.—The term ‘‘Department’’means the Department of Energy.

(3) DEPARTMENT OFFICE.—The term ‘‘De-partment Office’’ means the Office of Cli-mate Change Technology of the Departmentestablished by section 1017(a).

(4) FEDERAL AGENCY.—The term ‘‘Federalagency’’ has the meaning given the term‘‘agency’’ in section 551 of title 5, UnitedStates Code.

CONGRESSIONAL RECORD — SENATES1476 March 5, 2002(5) GREENHOUSE GAS.—The term ‘‘green-

house gas’’ means—(A) an anthropogenic gaseous constituent

of the atmosphere (including carbon dioxide,methane, nitrous oxide, chlorofluorocarbons,hydrofluorocarbons, perfluorocarbons, sulfurhexafluoride, and tropospheric ozone) thatabsorbs and re-emits infrared radiation andinfluences climate; and

(B) an anthropogenic aerosol (such asblack soot) that absorbs solar radiation andinfluences climate.

(6) INTERAGENCY TASK FORCE.—The term‘‘Interagency Task Force’’ means the UnitedStates Climate Change Response Inter-agency Task Force established under section1016(d).

(7) KEY ELEMENT.—The term ‘‘key ele-ment’’, with respect to the Strategy,means—

(A) definition of interim emission mitiga-tion levels, that, coupled with specific miti-gation approaches and after taking into ac-count actions by other nations (if any),would result in stabilization of greenhousegas concentrations;

(B) technology development, including—(i) a national commitment to double en-

ergy research and development by the UnitedStates public and private sectors; and

(ii) in carrying out such research and de-velopment, a national commitment to pro-vide a high degree of emphasis on bold,breakthrough technologies that will makepossible a profound transformation of the en-ergy, transportation, industrial, agricul-tural, and building sectors of the UnitedStates;

(C) climate adaptation research that—(i) focuses on response actions necessary to

adapt to climate change that may have al-ready occurred;

(ii) focuses on response actions necessaryto adapt to climate change that may occurunder any future climate change scenario;and

(D) climate science research that—(i) builds on the substantial scientific un-

derstanding of climate change that exists asof the date of enactment of this Act; and

(ii) focuses on resolving the remaining sci-entific, technical, and economic uncertain-ties to aid in the development of sound re-sponse strategies.

(8) QUALIFIED INDIVIDUAL.—(A) IN GENERAL.—The term ‘‘qualified indi-

vidual’’ means an individual who has dem-onstrated expertise and leadership skills todraw on other experts in diverse fields ofknowledge that are relevant to addressingthe climate change response challenge.

(B) FIELDS OF KNOWLEDGE.—The fields ofknowledge referred to in subparagraph (A)are—

(i) the science of primary and secondaryclimate change impacts;

(ii) energy and environmental economics;(iii) technology transfer and diffusion;(iv) the social dimensions of climate

change;(v) climate change adaptation strategies;(vi) fossil, nuclear, and renewable energy

technology;(vii) energy efficiency and energy con-

servation;(viii) energy systems integration;(ix) engineered and terrestrial carbon se-

questration;(x) transportation, industrial, and building

sector concerns;(xi) regulatory and market-based mecha-

nisms for addressing climate change;(xii) risk and decision analysis;(xiii) strategic planning; and(xiv) the international implications of cli-

mate change response strategies.(9) REVIEW BOARD.—The term ‘‘Review

Board’’ means the United States Climate

Change Response Strategy Review Board es-tablished by section 1019.

(10) SECRETARY.—The term ‘‘Secretary’’means the Secretary of Energy.

(11) STABILIZATION OF GREENHOUSE GAS CON-CENTRATIONS.—The term ‘‘stabilization ofgreenhouse gas concentrations’’ means thestabilization of greenhouse gas concentra-tions in the atmosphere at a level that wouldprevent dangerous anthropogenic inter-ference with the climate system, recognizingthat such a level should be achieved within atime frame sufficient to allow ecosystems toadapt naturally to climate change, to ensurethat food production is not threatened andto enable economic development to proceedin a sustainable manner, as contemplated bythe United Nations Framework Conventionon Climate Change, done at New York onMay 9, 1992.

(12) STRATEGY.—The term ‘‘Strategy’’means the United States Climate Change Re-sponse Strategy developed under section1015.

(13) WHITE HOUSE OFFICE.—The term‘‘White House Office’’ means the National Of-fice of Climate Change Response of the Exec-utive Office of the President established bysection 1016(a).SEC. 1015. UNITED STATES CLIMATE CHANGE RE-

SPONSE STRATEGY.

(a) IN GENERAL.—The Director of the WhiteHouse Office shall develop the United StatesClimate Change Response Strategy, whichshall—

(1) have the long-term goal of stabilizationof greenhouse gas concentrations throughactions taken by the United States and othernations;

(2) recognize that accomplishing the long-term goal of stabilization will take frommany decades to more than a century, butacknowledging that significant actions mustbegin in the near term;

(3) build on the 4 key elements;(4) be developed on the basis of an exam-

ination of a broad range of emissions levelsand dates for achievement of those levels (in-cluding those evaluated by the Intergovern-mental Panel on Climate Change and thoseconsistent with U.S. treaty commitments)that, after taking into account by actionsother nations (if any), would culminate inthe stabilization of greenhouse gas con-centrations;

(5) consider the broad range of activitiesand actions that can be taken by UnitedStates entities to reduce, avoid, or sequestergreenhouse gas emissions both within theUnited States and in other nations throughthe use of market mechanisms, which mayinclude but not limited to mitigation activi-ties, terrestrial sequestration, earning off-sets through carbon capture or project-basedactivities, trading of emissions credits in do-mestic and international markets, and theapplication of the resulting credits from anyof the above within the United States;

(6) minimize any adverse short-term andlong-term social, economic, national secu-rity, and environmental impacts, includingensuring that the strategy is developed in aneconomically and environmentally soundmanner;

(7) incorporate mitigation approaches lead-ing to the development and deployment ofadvanced technologies and practices thatwill reduce, avoid, or sequester greenhousegas emissions;

(8) recognize that the climate change re-sponse strategy is intended to guide the na-tion’s effort to address climate change, butit shall not create a legal obligation on thepart of any person or entity other than theduties of the Director of the White House Of-fice and Interagency Task Force in the de-velopment of the strategy;

(9) be consistent with the goals of energy,transportation, industrial, agricultural, for-estry, environmental, economic, and otherrelevant policies of the United States;

(10) be consistent with the goals of energy,transportation, industrial, agricultural, for-estry, environmental, and other relevantpolicies of the United States;

(11) have a scope that considers the total-ity of United States public, private, and pub-lic-private sector actions that bear on thelong-term goal;

(12) be based on an evaluation of a widerange of approaches for achieving the long-term goal, including evaluation of—

(A) a variety of cost-effective Federal andState policies, programs, standards, and in-centives;

(B) policies that integrate and promote in-novative, market-based solutions in theUnited States and in foreign countries; and

(C) participation in other international in-stitutions, or in the support of internationalactivities, that are established or conductedto facilitate stabilization of greenhouse gasconcentrations;

(13) in the final recommendations of theStrategy, emphasize response strategies thatachieve the long-term goal and provide spe-cific recommendations concerning—

(A) measures determined to be appropriatefor short-term implementation, giving pref-erence to cost-effective and technologicallyfeasible measures that will—

(i) produce measurable net reductions inUnited States emissions that lead towardachievement of the long-term goal; and

(ii) minimize any adverse short-term andlong-term economic, environmental, na-tional security, and social impacts on theUnited States;

(B) the development of technologies thathave the potential for long-termimplementation—

(i) giving preference to technologies thathave the potential to reduce significantlythe overall cost of stabilization of green-house gas concentrations; and

(ii) considering a full range of energysources, energy conversion and use tech-nologies, and efficiency options;

(C) such changes in institutional and tech-nology systems as are necessary to adapt toclimate change in the short-term and thelong-term;

(D) such review, modification, and en-hancement of the scientific, technical, andeconomic research efforts of the UnitedStates, and improvements to the data result-ing from research, as are appropriate to im-prove the accuracy of predictions concerningclimate change and the economic and socialcosts and opportunities relating to climatechange; and

(E) changes that should be made to projectand grant evaluation criteria under otherFederal research and development programsso that those criteria do not inhibit develop-ment of climate-friendly technologies;

(14) be developed in a manner that providesfor meaningful participation by, and con-sultation among, Federal, State, tribal, andlocal government agencies, nongovernmentalorganizations, academia, scientific bodies,industry, the public, and other interestedparties in accordance with subsections(b)(4)(C)(iv)(II) and (d)(3)(B)(iii) of section1016;

(15) address how the United States shouldengage State, tribal, and local governmentsin developing and carrying out a response toclimate change;

(16) promote, to the maximum extent prac-ticable, public awareness, outreach, and in-formation-sharing to further the under-standing of the full range of climate change-related issues;

CONGRESSIONAL RECORD — SENATE S1477March 5, 2002(17) provide a detailed explanation of how

the measures recommended by the Strategywill ensure that they do not result in seriousharm to the economy of the United States;

(18) provide a detailed explanation of howthe measures recommended by the Strategywill achieve the long-term goal of stabiliza-tion of greenhouse gas concentrations;

(19) include any recommendations for leg-islative and administrative actions nec-essary to implement the Strategy;

(20) serve as a framework for climatechange response actions by all Federal agen-cies;

(21) recommend which Federal agenciesare, or should be, responsible for the variousaspects of implementation of the Strategyand any budgetary implications;

(22) address how the United States shouldengage foreign governments in developing aninternational response to climate change;and

(23) be subject to review by an independentreview board in accordance with section 1019.

(b) SUBMISSION TO CONGRESS.—Not laterthan 1 year after the date of enactment ofthis title, the President shall submit to Con-gress the Strategy.

(c) UPDATING.—Not later than 2 years afterthe date of submission of the Strategy toCongress under subsection (b), and at the endof each 2-year period thereafter, the Presi-dent shall submit to Congress an updatedversion of the Strategy.

(d) PROGRESS REPORTS.—Not later than 1year after the date of submission of theStrategy to Congress under subsection (b),and at the end of each 1-year period there-after, the President shall submit to Congressa report that—

(1) describes the progress on implementa-tion of the Strategy; and

(2) provides recommendations for improve-ment of the Strategy and the implementa-tion of the Strategy.

(e) ALIGNMENT WITH ENERGY, TRANSPOR-TATION, INDUSTRIAL, AGRICULTURAL, FOR-ESTRY, AND OTHER POLICIES.—The President,the Director of the White House Office, theSecretary, and the other members of theInteragency Task Force shall work togetherto align the actions carried out under theStrategy and actions associated with the en-ergy, transportation, industrial, agricul-tural, forestry, and other relevant policies ofthe United States so that the objectives ofboth the Strategy and the policies are metwithout compromising the climate change-related goals of the Strategy or the goals ofthe policies.SEC. 1016. NATIONAL OFFICE OF CLIMATE

CHANGE RESPONSE OF THE EXECU-TIVE OFFICE OF THE PRESIDENT.

(a) ESTABLISHMENT.—(1) IN GENERAL.—There is established, with-

in the Executive Office of the President, theNational Office of Climate Change Response.

(2) FOCUS.—The White House Office shallhave the focus of achieving the long-termgoal of stabilization of greenhouse gas con-centrations while minimizing adverse short-term and long-term economic and social im-pacts.

(3) DUTIES.—Consistent with paragraph (2),the White House Office shall—

(A) establish policies, objectives, and prior-ities for the Strategy;

(B) in accordance with subsection (d), es-tablish the Interagency Task Force to serveas the primary mechanism through whichthe heads of Federal agencies shall assist theDirector of the White House Office in devel-oping and implementing the Strategy;

(C) to the maximum extent practicable, en-sure that the Strategy is based on objective,quantitative analysis, drawing on the ana-lytical capabilities of Federal and Stateagencies, especially the Department Office;

(D) advise the President concerning nec-essary changes in organization, manage-ment, budgeting, and personnel allocation ofFederal agencies involved in climate changeresponse activities; and

(E) advise the President and notify a Fed-eral agency if the policies and discretionaryprograms of the agency are not well alignedwith, or are not contributing effectively to,the long-term goal of stabilization of green-house gas concentrations.

(b) DIRECTOR OF THE WHITE HOUSE OF-FICE.—

(1) IN GENERAL.—The White House Officeshall be headed by a Director, who shall re-port directly to the President.

(2) APPOINTMENT.—The Director of theWhite House Office shall be a qualified indi-vidual appointed by the President, by andwith the advice and consent of the Senate.

(3) DUTIES OF THE DIRECTOR OF THE WHITEHOUSE OFFICE.—

(A) STRATEGY.—In accordance with section1015, the Director of the White House Officeshall coordinate the development and updat-ing of the Strategy.

(B) INTERAGENCY TASK FORCE.—The Direc-tor of the White House Office shall serve asChairperson of the Interagency Task Force.

(C) ADVISORY DUTIES.—(i) CLIMATE, ENERGY, TRANSPORTATION, IN-

DUSTRIAL, AGRICULTURAL, BUILDING, FOR-ESTRY, AND OTHER PROGRAMS.—The Directorof the White House Office, using an inte-grated perspective considering the totalityof actions in the United States, shall advisethe President and the heads of Federal agen-cies on—

(I) the extent to which United States en-ergy, transportation, industrial, agricul-tural, forestry, building, and other relevantprograms are capable of producing progresson the long-term goal of stabilization ofgreenhouse gas concentrations; and

(II) the extent to which proposed or newlycreated energy, transportation, industrial,agricultural, forestry, building, and otherrelevant programs positively or negativelyaffect the ability of the United States toachieve the long-term goal of stabilization ofgreenhouse gas concentrations.

(ii) TAX, TRADE, AND FOREIGN POLICIES.—The Director of the White House Office,using an integrated perspective consideringthe totality of actions in the United States,shall advise the President and the heads ofFederal agencies on—

(I) the extent to which the United Statestax policy, trade policy, and foreign policyare capable of producing progress on thelong-term goal of stabilization of greenhousegas concentrations; and

(II) the extent to which proposed or newlycreated tax policy, trade policy, and foreignpolicy positively or negatively affect theability of the United States to achieve thelong-term goal of stabilization of greenhousegas concentrations.

(iii) INTERNATIONAL TREATIES.—The Sec-retary of State, acting in conjunction withthe Interagency Task Force and using theanalytical tools available to the WhiteHouse Office, shall provide to the Director ofthe White House Office an opinion that—

(I) specifies, to the maximum extent prac-ticable, the economic and environmentalcosts and benefits of any proposed inter-national treaties or components of treatiesthat have an influence on greenhouse gasmanagement; and

(II) assesses the extent to which the trea-ties advance the long-term goal of stabiliza-tion of greenhouse gas concentrations, whileminimizing adverse short-term and long-term economic and social impacts and con-sidering other impacts.

(iv) CONSULTATION.—

(I) WITH MEMBERS OF INTERAGENCY TASKFORCE.—To the extent practicable and appro-priate, the Director of the White House Of-fice shall consult with all members of theInteragency Task Force and other interestedparties before providing advice to the Presi-dent.

(II) WITH OTHER INTERESTED PARTIES.—TheDirector of the White House Office shall es-tablish a process for obtaining the meaning-ful participation of Federal, State, tribal,and local government agencies, nongovern-mental organizations, academia, scientificbodies, industry, the public, and other inter-ested parties in the formulation of advice tobe provided to the President.

(D) PUBLIC EDUCATION, AWARENESS, OUT-REACH, AND INFORMATION-SHARING.—The Di-rector of the White House Office, to the max-imum extent practicable, shall promote pub-lic awareness, outreach, and information-sharing to further the understanding of thefull range of climate change-related issues.

(4) ANNUAL REPORTS.—The Director of theWhite House Office, in consultation with theInteragency Task Force and other interestedparties, shall prepare an annual report forsubmission by the President to Congressthat—

(A) assesses progress in implementation ofthe Strategy;

(B) assesses progress, in the United Statesand in foreign countries, toward the long-term goal of stabilization of greenhouse gasconcentrations;

(C) assesses progress toward meeting cli-mate change-related international obliga-tions;

(D) makes recommendations for actions bythe Federal Government designed to closeany gap between progress-to-date and themeasures that are necessary to achieve thelong-term goal of stabilization of greenhousegas concentrations; and

(E) addresses the totality of actions in theUnited States that relate to the 4 key ele-ments.

(5) ANALYSIS.—During development of theStrategy, preparation of the annual reportssubmitted under paragraph (5), and provisionof advice to the President and the heads ofFederal agencies, the Director of the WhiteHouse Office shall place significant emphasison the use of objective, quantitative anal-ysis, taking into consideration any uncer-tainties associated with the analysis.

(c) STAFF.—(1) IN GENERAL.—The Director of the White

House Office shall employ a professionalstaff of not more than 25 individuals to carryout the duties of the White House Office.

(2) INTERGOVERNMENTAL PERSONNEL ANDFELLOWSHIPS.—The Director of the WhiteHouse Office may use the authority providedby the Intergovernmental Personnel Act of1970 (42 U.S.C. 4701 et seq.) and subchapter VIof chapter 33 of title 5, United States Code,and fellowships, to obtain staff from aca-demia, scientific bodies, nonprofit organiza-tions, and national laboratories, for appoint-ments of a limited term.

(d) INTERAGENCY TASK FORCE.—(1) IN GENERAL.—The Director of the White

House Office shall establish the UnitedStates Climate Change Response Inter-agency Task Force.

(2) COMPOSITION.—The Interagency TaskForce shall be composed of—

(A) the Director of the White House Office,who shall serve as Chairperson;

(B) the Secretary of State;(C) the Secretary;(D) the Secretary of Commerce;(E) the Secretary of the Treasury;(F) the Secretary of Transportation;(G) the Secretary of Agriculture;(H) the Administrator of the Environ-

mental Protection Agency;

CONGRESSIONAL RECORD — SENATES1478 March 5, 2002(I) the Administrator of the Agency for

International Development;(J) the United States Trade Representa-

tive;(K) the National Security Advisor;(L) the Chairman of the Council of Eco-

nomic Advisers;(M) the Chairman of the Council on Envi-

ronmental Quality;(N) the Director of the Office of Science

and Technology Policy;(O) the Chairperson of the Subcommittee

on Global Change Research (which performsthe functions of the Committee on Earth andEnvironmental Sciences established by sec-tion 102 of the Global Change Research Actof 1990 (15 U.S.C. 2932)); and

(P) the heads of such other Federal agen-cies as the Chairperson determines should bemembers of the Interagency Task Force.

(3) STRATEGY.—(A) IN GENERAL.—The Interagency Task

Force shall serve as the primary forumthrough which the Federal agencies rep-resented on the Interagency Task Forcejointly—

(i) assist the Director of the White HouseOffice in developing and updating the Strat-egy; and

(ii) assist the Director of the White HouseOffice in preparing annual reports under sub-section (b)(5).

(B) REQUIRED ELEMENTS.—In carrying outsubparagraph (A), the Interagency TaskForce shall—

(i) take into account the long-term goaland other requirements of the Strategy spec-ified in section 1015(a);

(ii) consult with State, tribal, and localgovernment agencies, nongovernmental or-ganizations, academia, scientific bodies, in-dustry, the public, and other interested par-ties; and

(iii) build consensus around a Strategythat is based on strong scientific, technical,and economic analyses.

(4) WORKING GROUPS.—The Chairperson ofthe Interagency Task Force may establishsuch topical working groups as are necessaryto carry out the duties of the InteragencyTask Force.

(e) PROVISION OF SUPPORT STAFF.—In ac-cordance with procedures established by theChairperson of the Interagency Task Force,the Federal agencies represented on theInteragency Task Force shall provide stafffrom the agencies to support information,data collection, and analyses required by theInteragency Task Force.

(f) HEARINGS.—On request of the Chair-person, the Interagency Task Force mayhold such hearings, meet and act at suchtimes and places, take such testimony, andreceive such evidence as the InteragencyTask Force considers to be appropriate.SEC. 1017. TECHNOLOGY INNOVATION PROGRAM

IMPLEMENTED THROUGH THE OF-FICE OF CLIMATE CHANGE TECH-NOLOGY OF THE DEPARTMENT OFENERGY.

(a) ESTABLISHMENT OF OFFICE OF CLIMATECHANGE TECHNOLOGY OF THE DEPARTMENT OFENERGY.—

(1) IN GENERAL.—There is established, with-in the Department, the Office of ClimateChange Technology.

(2) DUTIES.—The Department Office shall—(A) manage an energy technology research

and development program that directly sup-ports the Strategy by—

(i) focusing on high-risk, bold, break-through technologies that—

(I) have significant promise of contributingto the national climate change policy oflong-term stabilization of greenhouse gasconcentrations by—

(aa) mitigating the emissions of green-house gases;

(bb) removing and sequestering greenhousegases from emission streams; or

(cc) removing and sequestering greenhousegases from the atmosphere;

(II) are not being addressed significantlyby other Federal programs; and

(III) would represent a substantial advancebeyond technology available on the date ofenactment of this title;

(ii) forging fundamentally new researchand development partnerships among variousDepartment, other Federal, and State pro-grams, particularly between basic scienceand energy technology programs, in cases inwhich such partnerships have significant po-tential to affect the ability of the UnitedStates to achieve stabilization of greenhousegas concentrations at the lowest possiblecost;

(iii) forging international research and de-velopment partnerships that are in the inter-ests of the United States and make progresson stabilization of greenhouse gas concentra-tions;

(iv) making available, through monitoring,experimentation, and analysis, data that areessential to proving the technical and eco-nomic viability of technology central to ad-dressing climate change; and

(v) transitioning research and developmentprograms to other program offices of the De-partment once such a research and develop-ment program crosses the threshold of high-risk research and moves into the realm ofmore conventional technology development;

(B) prepare annual reports in accordancewith subsection (b)(6);

(C) identify the total contribution of allDepartment programs to climate change re-sponse;

(D) provide substantial analytical supportto the White House Office, particularly sup-port in the development of the Strategy andassociated progress reporting; and

(E) advise the Secretary on climatechange-related issues, including necessarychanges in Department organization, man-agement, budgeting, and personnel alloca-tion in the programs involved in climatechange response-related activities.

(b) DIRECTOR OF THE DEPARTMENT OFFICE.—(1) IN GENERAL.—The Department Office

shall be headed by a Director, who shall re-port directly to the Secretary.

(2) APPOINTMENT.—The Director of the De-partment Office shall be an employee of theFederal Government who is a qualified indi-vidual appointed by the President.

(3) TERM.—The Director of the DepartmentOffice shall be appointed for a term of 4years.

(4) VACANCIES.—A vacancy in the positionof the Director of the Department Officeshall be filled in the same manner as theoriginal appointment was made.

(5) DUTIES OF THE DIRECTOR OF THE DEPART-MENT OFFICE.—

(A) TECHNOLOGY DEVELOPMENT.—The Direc-tor of the Department Office shall managethe energy technology research and develop-ment program described in subsection(a)(2)(A).

(B) STRATEGY.—The Director of the De-partment Office shall support developmentof the Strategy through the provision ofstaff and analytical support.

(C) INTERAGENCY TASK FORCE.—Through ac-tive participation in the Interagency TaskForce, the Director of the Department Officeshall—

(i) based on the analytical capabilities ofthe Department Office, share analyses of al-ternative climate change response strategieswith other members of the Interagency TaskForce to assist all members inunderstanding—

(I) the scale of the climate change responsechallenge; and

(II) how the actions of the Federal agenciesof the members positively or negatively con-tribute to climate change solutions; and

(ii) determine how the energy technologyresearch and development program describedin subsection (a)(2)(A) can be designed formaximum impact on the long-term goal ofstabilization of greenhouse gas concentra-tions.

(D) TOOLS, DATA, AND CAPABILITIES.—TheDirector of the Department Office shall fos-ter the development of tools, data, and capa-bilities to ensure that—

(i) the United States has a robust capa-bility for evaluating alternative climatechange response scenarios; and

(ii) the Department Office provides long-term analytical continuity during the termsof service of successive Presidents.

(E) ADVISORY DUTIES.—The Director of theDepartment Office shall advise the Secretaryon all aspects of climate change response.

(6) ANNUAL REPORTS.—The Director of theDepartment Office shall prepare an annualreport for submission by the Secretary toCongress and the White House Office that—

(A) assesses progress toward meeting thegoals of the energy technology research anddevelopment program described in sub-section (a)(2)(A);

(B) assesses the activities of the Depart-ment Office;

(C) assesses the contributions of all energytechnology research and development pro-grams of the Department (including scienceprograms) to the long-term goal and otherrequirements of the Strategy specified insection 1015(a); and

(D) makes recommendations for actions bythe Department and other Federal agenciesto address the components of technology de-velopment that are necessary to support theStrategy.

(7) ANALYSIS.—During development of theStrategy, annual reports submitted underparagraph (6), and advice to the Secretary,the Director of the Department Office shallplace significant emphasis on the use of ob-jective, quantitative analysis, taking intoconsideration any associated uncertainties.

(c) STAFF.—The Director of the Depart-ment Office shall employ a professional staffof not more than 25 individuals to carry outthe duties of the Department Office.

(d) INTERGOVERNMENTAL PERSONNEL ANDFELLOWSHIPS.—The Department Office mayuse the authority provided by the Intergov-ernmental Personnel Act of 1970 (42 U.S.C.4701 et seq.), subchapter VI of chapter 33 oftitle 5, United States Code, and other De-partmental personnel authorities, to obtainstaff from academia, scientific bodies, non-profit organizations, industry, and nationallaboratories, for appointments of a limitedterm.

(e) RELATIONSHIP TO OTHER DEPARTMENTPROGRAMS.—Each project carried out by theDepartment Office shall be—

(1) initiated only after consultation with 1or more other appropriate program offices ofthe Department that support research anddevelopment in areas relating to the project;

(2) managed by the Department Office; and(3) in the case of a project that reaches a

sufficient level of maturity, with the concur-rence of the Department Office and an appro-priate office described in paragraph (1),transferred to the appropriate office, alongwith the funds necessary to continue theproject to the point at which non-Federalfunding can provide substantial support forthe project.

(f) ANALYSIS OF STRATEGIC CLIMATECHANGE RESPONSE.—

(1) IN GENERAL.—(A) GOAL.—The Department Office shall

foster the development and application of

CONGRESSIONAL RECORD — SENATE S1479March 5, 2002advanced computational tools, data, and ca-pabilities that, together with the capabili-ties of other federal agencies, support inte-grated assessment of alternative climatechange response scenarios and implementa-tion of the Strategy.

(B) PARTICIPATION AND SUPPORT.—Projectssupported by the Department Office may in-clude participation of, and be supported by,other Federal agencies that have a role inthe development, commercialization, ortransfer of energy, transportation, indus-trial, agricultural, forestry, or other climatechange-related technology.

(2) PROGRAMS.—(A) IN GENERAL.—The Department Office

shall—(i) develop and maintain core analytical

competencies and complex, integrated com-putational modeling capabilities that, to-gether with the capabilities of other Federalagencies, are necessary to support the designand implementation of the Strategy; and

(ii) track United States and internationalprogress toward the long-term goal of sta-bilization of greenhouse gas concentrations.

(B) INTERNATIONAL CARBON DIOXIDE SEQUES-TRATION MONITORING AND DATA PROGRAM.—Inconsultation with Federal, State, academic,scientific, private sector, nongovernmental,tribal, and international carbon capture andsequestration technology programs, the De-partment Office shall design and carry outan international carbon dioxide sequestra-tion monitoring and data program to collect,analyze, and make available the technicaland economic data to ascertain—

(i) whether engineered sequestration andterrestrial sequestration will be acceptabletechnologies from regulatory, economic, andinternational perspectives;

(ii) whether carbon dioxide sequestered ingeological formations or ocean systems isstable and has inconsequential leakage rateson a geologic time-scale; and

(iii) the extent to which forest, agricul-tural, and other terrestrial systems are suit-able carbon sinks.

(3) AREAS OF EXPERTISE.—(A) IN GENERAL.—The Department Office

shall develop and maintain expertise in inte-grated assessment, modeling, and related ca-pabilities necessary—

(i) to understand the relationship betweennatural, agricultural, industrial, energy, andeconomic systems;

(ii) to design effective research and devel-opment programs; and

(iii) to develop and implement the Strat-egy.

(B) TECHNOLOGY TRANSFER AND DIFFU-SION.—The expertise described in clause (i)shall include knowledge of technology trans-fer and technology diffusion in United Statesmarkets and foreign markets.

(4) DISSEMINATION OF INFORMATION.—TheDepartment Office shall ensure, to the max-imum extent practicable, that technical andscientific knowledge relating to greenhousegas emission reduction, avoidance, and se-questration is broadly disseminated throughpublications, fellowships, and training pro-grams.

(5) ASSESSMENTS.—In a manner consistentwith the Strategy, the Department shallconduct assessments of deployment of cli-mate-friendly technology.

(6) USE OF PRIVATE SECTOR FUNDING.—(A) IN GENERAL.—The Department Office

shall create an operating model that allowsfor collaboration, division of effort, and costsharing with industry on individual climatechange response projects.

(B) REQUIREMENTS.—Although cost sharingin some cases may be appropriate, the De-partment Office shall focus on long-termhigh-risk research and development andshould not make industrial partnerships or

cost sharing a requirement, if such a require-ment would bias the activities of the Depart-ment Office toward incremental innovations.

(C) REEVALUATION ON TRANSITION.—At suchtime as any bold, breakthrough research anddevelopment program reaches a sufficientlevel of technological maturity such that theprogram is transitioned to a program officeof the Department other than the Depart-ment Office, the cost-sharing requirementsand criteria applicable to the programshould be reevaluated.

(D) PUBLICATION IN FEDERAL REGISTER.—Each cost-sharing agreement entered intounder this subparagraph shall be publishedin the Federal Register.SEC. 1018. ADDITIONAL OFFICES AND ACTIVI-

TIES.The Secretary of Agriculture, the Sec-

retary of Transportation, the Secretary ofCommerce, the Administrator of the Envi-ronmental Protection Agency, and the headsof other Federal agencies may establish suchoffices and carry out such activities, in addi-tion to those established or authorized bythis Act, as are necessary to carry out thisAct.SEC. 1019. UNITED STATES CLIMATE CHANGE RE-

SPONSE STRATEGY REVIEW BOARD.(a) ESTABLISHMENT.—There is established

as an independent establishment within theexecutive branch the United States ClimateChange Response Strategy Review Board.

(b) MEMBERSHIP.—(1) COMPOSITION.—The Review Board shall

consist of 11 members who shall be ap-pointed, not later than 90 days after the dateof enactment of this Act, by the President byand with the advice and consent of the Sen-ate, from among qualified individuals nomi-nated by the National Academy of Sciencesin accordance with paragraph (2).

(2) NOMINATIONS.—Not later than 60 daysafter the date of enactment of this Act, aftertaking into strong consideration the guid-ance and recommendations of a broad rangeof scientific and technical societies thathave the capability of recommending quali-fied individuals, the National Academy ofSciences shall nominate for appointment tothe Review Board not fewer than 22 individ-uals who—

(A) are—(i) qualified individuals; or(ii) experts in a field of knowledge specified

in section 1014(9)(B); and(B) as a group represent broad, balanced

expertise.(3) PROHIBITION ON FEDERAL GOVERNMENT

EMPLOYMENT.—A member of the ReviewBoard shall not be an employee of the Fed-eral Government.

(4) TERMS; VACANCIES.—(A) TERMS.—(i) IN GENERAL.—Subject to clause (ii), each

member of the Review Board shall be ap-pointed for a term of 4 years.

(ii) INITIAL TERMS.—(I) COMMENCEMENT DATE.—The term of each

member initially appointed to the ReviewBoard shall commence 120 days after thedate of enactment of this title.

(II) TERMINATION DATE.—Of the 11 membersinitially appointed to the Review Board, 5members shall be appointed for a term of 2years and 6 members shall be appointed for aterm of 4 years, to be designated by thePresident at the time of appointment.

(B) VACANCIES.—(i) IN GENERAL.—A vacancy on the Review

Board shall be filled in the manner describedin this subparagraph.

(ii) NOMINATIONS BY THE NATIONAL ACADEMYOF SCIENCES.—Not later than 60 days afterthe date on which a vacancy commences, theNational Academy of Sciences shall—

(I) after taking into strong considerationthe guidance and recommendations of a

broad range of scientific and technical soci-eties that have the capability of recom-mending qualified individuals, nominate,from among qualified individuals, not fewerthan 2 individuals to fill the vacancy; and

(II) submit the names of the nominees tothe President.

(iii) SELECTION.—Not later than 30 daysafter the date on which the nominationsunder clause (ii) are submitted to the Presi-dent, the President shall select from amongthe nominees an individual to fill the va-cancy.

(iv) SENATE CONFIRMATION.—An individualappointed to fill a vacancy on the ReviewBoard shall be appointed by and with the ad-vice and consent of the Senate.

(5) APPLICABILITY OF ETHICS IN GOVERNMENTACT OF 1978.—A member of the Review Boardshall be deemed to be an individual subjectto the Ethics in Government Act of 1978 (5U.S.C. App.).

(6) CHAIRPERSON; VICE CHAIRPERSON.—Themembers of the Review Board shall select aChairperson and a Vice Chairperson of theReview Board from among the members ofthe Review Board.

(c) DUTIES.—(1) IN GENERAL.—Not later than 180 days

after the date of submission of the initialStrategy under section 1015(b), each updatedversion of the Strategy under section 1015(c),and each progress report under section1015(d), the Review Board shall submit to thePresident, Congress, and the heads of Fed-eral agencies as appropriate a report assess-ing the adequacy of the Strategy or report.

(2) COMMENTS.—In reviewing the Strategyor a report under paragraph (1), the ReviewBoard shall consider and comment on—

(A) the adequacy of effort and the appro-priateness of focus of the totality of all pub-lic, private, and public-private sector actionsof the United States with respect to the 4key elements;

(B) the extent to which actions of theUnited States, with respect to climatechange, complement or leverage inter-national research and other efforts designedto manage global emissions of greenhousegases, to further the long-term goal of sta-bilization of greenhouse gas concentrations;

(C) the funding implications of any rec-ommendations made by the Review Board;and

(D)(i) the effectiveness with which eachFederal agency is carrying out the respon-sibilities of the Federal agency with respectto the short-term and long-term greenhousegas management goals; and

(ii) the adequacy of the budget of each suchFederal agency to carry out those respon-sibilities.

(3) ADDITIONAL RECOMMENDATIONS.—(A) IN GENERAL.—Subject to subparagraph

(B), the Review Board, at the request of thePresident or Congress, may provide rec-ommendations on additional climate change-related topics.

(B) SECONDARY DUTY.— The provision ofrecommendations under subparagraph (A)shall be a secondary duty to the primaryduty of the Review Board of providing inde-pendent review of the Strategy and the re-ports under paragraphs (1) and (2).

(d) POWERS.—(1) HEARINGS.—(A) IN GENERAL.—On request of the Chair-

person or a majority of the members of theReview Board, the Review Board may holdsuch hearings, meet and act at such timesand places, take such testimony, and receivesuch evidence as the Review Board considersto be appropriate.

(B) ADMINISTRATION OF OATHS.—Any mem-ber of the Review Board may administer anoath or affirmation to any witness that ap-pears before the Review Board.

CONGRESSIONAL RECORD — SENATES1480 March 5, 2002(2) PRODUCTION OF DOCUMENTS.—(A) IN GENERAL.—On request of the Chair-

person or a majority of the members of theReview Board, and subject to applicable law,the Secretary or head of a Federal agencyrepresented on the Interagency Task Force,or a contractor of such an agency, shall pro-vide the Review Board with such records,files, papers, data, and information as arenecessary to respond to any inquiry of theReview Board under this Act.

(B) INCLUSION OF WORK IN PROGRESS.—Sub-ject to applicable law, information obtain-able under subparagraph (A)—

(i) shall not be limited to final work prod-ucts; but

(ii) shall include draft work products anddocumentation of work in progress.

(3) POSTAL SERVICES.—The Review Boardmay use the United States mails in the samemanner and under the same conditions asother agencies of the Federal Government.

(e) COMPENSATION OF MEMBERS.—A memberof the Review Board shall be compensated ata rate equal to the daily equivalent of theannual rate of basic pay prescribed for levelIV of the Executive Schedule under section5315 of title 5, United States Code, for eachday (including travel time) during which themember is engaged in the performance of theduties of the Review Board.

(f) TRAVEL EXPENSES.—A member of theReview Board shall be allowed travel ex-penses, including per diem in lieu of subsist-ence, at rates authorized for an employee ofan agency under subchapter I of chapter 57 oftitle 5, United States Code, while away fromthe home or regular place of business of themember in the performance of the duties ofthe Review Board.

(g) STAFF.—(1) IN GENERAL.—The Chairperson of the

Review Board may, without regard to theprovisions of title 5, United States Code, re-garding appointments in the competitiveservice, appoint and terminate an executivedirector and such other additional personnelas are necessary to enable the Review Boardto perform the duties of the Review Board.

(2) CONFIRMATION OF EXECUTIVE DIRECTOR.—The employment of an executive directorshall be subject to confirmation by the Re-view Board.

(3) COMPENSATION.—(A) IN GENERAL.—Except as provided in

subparagraph (B), the Chairperson of the Re-view Board may fix the compensation of theexecutive director and other personnel with-out regard to the provisions of chapter 51 andsubchapter III of chapter 53 of title 5, UnitedStates Code, relating to classification of po-sitions and General Schedule pay rates.

(B) MAXIMUM RATE OF PAY.—The rate ofpay for the executive director and other per-sonnel shall not exceed the rate payable forlevel V of the Executive Schedule under sec-tion 5316 of title 5, United States Code.

(h) PROCUREMENT OF TEMPORARY ANDINTERMITTENT SERVICES.—The Chairperson ofthe Review Board may procure temporaryand intermittent services in accordance withsection 3109(b) of title 5, United States Code,at rates for individuals that do not exceedthe daily equivalent of the annual rate ofbasic pay prescribed for level V of the Execu-tive Schedule under section 5316 of that title.SEC. 1020. AUTHORIZATION OF APPROPRIATIONS.

(a) WHITE HOUSE OFFICE.—(1) USE OF AVAILABLE APPROPRIATIONS.—

From funds made available to Federal agen-cies for the fiscal year in which this Title isenacted, the President shall provide suchsums as are necessary to carry out the dutiesof the White House Office under this titleuntil the date on which funds are madeavailable under paragraph (2).

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the

White House Office to carry out the duties ofthe White House Office under this Title$5,000,000 for each of fiscal years 2003 through2011, to remain available through September30, 2011.

(b) DEPARTMENT OFFICE.—(1) USE OF AVAILABLE APPROPRIATIONS.—

From funds made available to Federal agen-cies for the fiscal year in which this title isenacted, the President shall provide suchsums as are necessary to carry out the dutiesof the Department Office under this Titleuntil the date on which funds are madeavailable under paragraph (2).

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to theDepartment Office to carry out the duties ofthe Department Office under this title$4,750,000,000 for the period of fiscal years2003 through 2011, to remain availablethrough September 30, 2011.

(c) REVIEW BOARD.—(1) USE OF AVAILABLE APPROPRIATIONS.—

From funds made available to Federal agen-cies for the fiscal year in which this title isenacted, the President shall provide suchsums as are necessary to carry out the dutiesof the Review Board under this title untilthe date on which funds are made availableunder paragraph (2).

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to theReview Board to carry out the duties of theReview Board under this title $3,000,000 foreach of fiscal years 2003 through 2011, to re-main available until expended.

(d) ADDITIONAL AMOUNTS.— Amounts au-thorized to be appropriated under this sec-tion shall be in addition to—

(1) amounts made available to carry outthe United States Global Change ResearchProgram under the Global Change ResearchAct of 1990 (15 U.S.C. 2921 et seq.); and

(2) amounts made available under otherprovisions of law for energy research and de-velopment.

Subtitle C—Science and Technology PolicySEC. 1031. GLOBAL CLIMATE CHANGE IN THE OF-

FICE OF SCIENCE AND TECHNOLOGYPOLICY.

Section 101(b) of the National Science andTechnology Policy, Organization, and Prior-ities Act of 1976 (42 U.S.C. 6601(b)) isamended—

(1) by redesignating paragraphs (7) through(13) as paragraphs (8) through (14), respec-tively; and

(2) by inserting after paragraph (6) the fol-lowing:

‘‘(7) improving efforts to understand, as-sess, predict, mitigate, and respond to globalclimate change;’’.SEC. 1032. ESTABLISHMENT OF ASSOCIATE DI-

RECTOR FOR GLOBAL CLIMATECHANGE.

Section 203 of the National Science andTechnology Policy, Organization, and Prior-ities Act of 1976 (42 U.S.C. 6612) is amended—

(1) by striking ‘‘four’’ in the second sen-tence and inserting ‘‘five’’; and

(2) by striking ‘‘title.’’ in the second sen-tence and inserting ‘‘title, one of whom shallbe responsible for global climate changescience and technology under the Office ofScience and Technology Policy.’’.

Subtitle D—Miscellaneous ProvisionsSEC. 1041. ADDITIONAL INFORMATION FOR REG-

ULATORY REVIEW.In each case that an agency prepares and

submits a Statement of Energy Effects pur-suant to Executive Order 13211 of May 18,2001 (relating to actions concerning regula-tions that significantly affect energy supply,distribution, or use), or as part of compli-ance with Executive Order 12866 of Sep-tember 30, 1993 (relating to regulatory plan-ning and review) or its successor, the agency

shall also submit an estimate of the changein net annual greenhouse gas emissions re-sulting from the proposed significant energyaction. In the case in which there is an in-crease in net annual greenhouse gas emis-sions as a result of the proposed significantenergy action, the agency shall indicatewhat policies or measures will be undertakento mitigate or offset the increased emissions.SEC. 1042. GREENHOUSE GAS EMISSIONS FROM

FEDERAL FACILITIES.(a) METHODOLOGY.—(1) IN GENERAL.—Not later than one year

after the date of enactment of this section,the Secretary of Energy, Secretary of Agri-culture, Secretary of Commerce, and Admin-istrator of the Environmental ProtectionAgency shall publish a jointly developedmethodology for preparing estimates of an-nual net greenhouse gas emissions from allFederally owned, leased, or operated facili-ties and emission sources, including mobilesources.

(2) INDIRECT AND OTHER EMISSIONS.—Themethodology under paragraph (1) shall in-clude emissions resulting from any Federalprocurement action with an annual Federalexpenditure of greater than $100 million, in-direct emissions associated with Federalelectricity consumption, and other emissionsresulting from Federal actions that theheads of the agencies under paragraph (1)may jointly decide to include in the esti-mates.

(b) PUBLICATION.—Not later than 18 monthsafter the date of enactment of this section,and annually thereafter, the Secretary ofEnergy shall publish an estimate of annualnet greenhouse gas emissions from all Feder-ally owned, leased, or operated facilities andemission sources, using the methodologypublished under subsection (a).

TITLE XI—NATIONAL GREENHOUSE GASDATABASE

SEC. 1101. PURPOSE.The purpose of this title is to establish a

greenhouse gas inventory, reductions reg-istry, and information system that—

(1) is complete, consistent, transparent,and accurate;

(2) will create reliable and accurate datathat can be used by public and private enti-ties to design efficient and effective green-house gas emission reduction strategies; and,

(3) will encourage and acknowledge green-house gas emissions reductions.SEC. 1102. DEFINITIONS.

In this title—(1) DATABASE.—The term ‘‘database’’

means the National Greenhouse Gas Data-base established under section 1104.

(2) DESIGNATED AGENCY OR AGENCIES.—Theterm ‘‘Designated Agency or Agencies’’means the Department or Departments and/or Agency or Agencies given the responsi-bility for a function or program under theMemorandum of Agreement entered intopursuant to Section 1103.

(3) DIRECT EMISSIONS.—The term ‘‘directemissions’’ means greenhouse gas emissionsby an entity from a facility that is owned orcontrolled by that entity.

(4) ENTITY.—The term ‘‘entity’’ means—(A) a person located in the United States;

or(B) a public or private entity, to the extent

that the entity operates in the UnitedStates.

(5) FACILITY.—The term ‘‘facility’’ meansall buildings, structures, or installations lo-cated on any one or more of contiguous oradjacent property or properties, or a fleet of20 or more transportation vehicles, undercommon control of the same entity.

(6) GREENHOUSE GAS.—The term ‘‘green-house gas’’ means—

(A) carbon dioxide;

CONGRESSIONAL RECORD — SENATE S1481March 5, 2002(B) methane;(C) nitrous oxide;(D) hydrofluororcarbons;(E) perfluorocarbons; and(F) sulfur hexafluoride.(7) INDIRECT EMISSIONS.—The term ‘indirect

emissions’ means greenhouse gas emissionsthat are a consequence of the activities of anentity but that are emitted from a facilityowned or controlled by another entity andare not already reported as direct emissionsby a covered entity.

(8) SEQUESTRATION.—The term ‘sequestra-tion’ means the capture, long-term separa-tion, isolation, or removal of greenhousegases from the atmosphere, includingthrough a biological or geologic method suchas reforestation or an underground reservoir.

SEC. 1103. ESTABLISHMENT OF MEMORANDUMOF AGREEMENT.

(a) Not later than one year after the dateof enactment of this title, the President, act-ing through the Chairman of the Council onEnvironmental Quality, shall direct the De-partment of Energy, the Department of Com-merce, the Department of Agriculture, theDepartment of Transportation and the Envi-ronmental Protection Agency, to enter intoa Memorandum of Agreement that will—

(1) recognize and maintain existing statu-tory and regulatory authorities, functionsand programs that collect data on green-house gas emissions and effects and that arenecessary for the operation of the NationalGreenhouse Gas Database;

(2) distribute additional responsibilitiesand activities identified by this title to Fed-eral departments or agencies according totheir mission and expertise and to maximizethe use of existing resources; and

(3) provide for the comprehensive collec-tion and analysis of data on the emissionsrelated to product use, including fossil fueland energy consuming appliances and vehi-cles.

(b) The Memorandum of Agreement en-tered into under subsection (a) shall, at aminimum, retain the following functions forthe respective Departments and agencies:

(1) The Department of Energy shall be pri-marily responsible for developing, maintain-ing, and verifying the emissions reductionregistry, under both this title and its author-ity under section 1605(b) of the Energy Pol-icy Act of 1992 (42 U.S.C. 13385(b)).

(2) The Department of Commerce shall beprimarily responsible for the development ofmeasurement standards for emissions moni-toring and verification technologies andmethods to ensure that there is a consistentand technically accurate record of emissions,reductions and atmospheric concentrationsof greenhouse gases for the database underthis title.

(3) The Environmental Protection Agencyshall be primarily responsible for emissionsmonitoring, measurement, verification anddata collection, pursuant to this title and ex-isting authority under Titles IV and VIII ofthe Clean Air Act, and including mobilesource emissions information from imple-mentation of the Corporate Average FuelEconomy program (49 U.S.C. Chapter 329),and the Agency’s role in completing the na-tional inventory for compliance with theUnited Nations Framework Convention onClimate Change.

(c) The Chairman shall publish a draftversion of the Memorandum of Agreement inthe Federal Register and solicit commentson it as soon as practicable and publish thefinal Memorandum of Agreement in the Fed-eral Register not later than 15 months afterthe date of enactment of this title.

(d) The final Memorandum of Agreementshall not be subject to judicial review.

SEC. 1104. NATIONAL GREENHOUSE GAS DATA-BASE.

(a) ESTABLISHMENT.—The Designated Agen-cy or Agencies, working in consultation withthe private sector and nongovernmental or-ganizations, shall establish, operate andmaintain a database to be known as the Na-tional Greenhouse Gas Database to collect,verify, and analyze information on—

(1) greenhouse gas emissions by entities lo-cated in the United States; and

(2) greenhouse gas emission reductions byentities based in the United States.

(b) NATIONAL GREENHOUSE GAS DATABASECOMPONENTS.—The database shall consist ofan inventory of greenhouse gas emissionsand a registry of greenhouse gas emissionsreductions.

(c) DEADLINE.—Not later than 2 years afterthe date of enactment of this title, the Des-ignated Agency or Agencies shall promulgatea rule to implement a comprehensive systemfor greenhouse gas emissions reporting,inventorying and reductions registration.The Designated Agency or Agencies shall en-sure that the system is designed to maximizecompleteness, transparency, and accuracyand to minimize measurement and reportingcosts for covered entities.

(d) REQUIRED ELEMENTS OF DATABASE RE-PORTING SYSTEM.—

(1) MANDATORY REPORTING.—(A) Beginning one year after promulgation

of the final rule issued under subsection (c),each entity that exceeds the greenhouse gasemissions threshold in paragraph (2) shall re-port annually to the Designated Agency orAgencies, for inclusion in the NationalGreenhouse Gas Database, the entity-wideemissions of greenhouse gases in the pre-vious calendar year. Such reports are due an-nually to the Designated Agency or Agen-cies, but must be submitted no later thanApril 30 of each calendar year in support ofthe previous years’ emission reporting re-quirements.

(B) Each report submitted shall include—(i) direct emissions from stationary

sources;(ii) direct emissions from vehicles owned

or controlled by a covered entity;(iii) direct emissions from any land use ac-

tivities that release significant quantities ofgreenhouse gases;

(iv) indirect emissions from all outsourcedactivities, contract manufacturing, wastestransferred from the control of an entity,and other relevant instances, as determinedto be practicable under the rule;

(v) indirect emissions from electricity,heat, and steam imported from another enti-ty, as determined to be practicable under therule;

(vi) the production, distribution or importof greenhouse gases listed under section 1102by an entity; and

(vii) such other categories, which the des-ignated Agency or Agencies determine byrule, after public notice and comment,should be included to accomplish the pur-poses of this title.

(C) Each report shall include total massquantities for each greenhouse gas emitted,and in terms of carbon dioxide equivalent.

(D) Each report shall include the green-house gas emissions per unit of output by anentity, such as tons of carbon dioxide perkilowatt-hour or a similar metric.

(E) The first report shall be required to besubmitted not later than April 30 of thefourth year after the date of enactment ofthis title.

(2) THRESHOLD FOR REPORTING.—(A) An entity shall not be required to

make a report under paragraph (1) unless—(i) the total greenhouse gas emissions of at

least one facility owned by an entity in thecalendar year for reporting exceeds 10,000

metric tons of carbon dioxide equivalent, ora greater level as determined by rule; or

(ii) the total quantity of greenhouse gasesproduced, distributed or imported by the en-tity exceeds 10,000 metric tons of carbon di-oxide equivalent, or a greater level as deter-mined by rule.

(B) The final rule promulgated under sec-tion 1104(c) and subsequent revisions to thatrule with respect to the threshold for report-ing in subparagraph (A) shall capture infor-mation on no less than 75 percent of anthro-pogenic greenhouse gas emissions from enti-ties.

(3) METHOD OF REPORTING.—Entity-wideemissions shall be reported at the facilitylevel.

(4) ADDITIONAL VOLUNTARY REPORTING.—Anentity may voluntarily report to the Des-ignated Agency or Agencies, for inclusion inthe registry portion of the nationaldatabase—

(A) with respect to the preceding calendaryear and any greenhouse gas emitted by theentity—

(i) project reductions from facilities ownedor controlled by the reporting entity in theUnited States;

(ii) transfers of project reductions to andfrom any other entity;

(iii) project reductions and transfers ofproject reductions outside the United States;

(iv) other indirect emissions that are notrequired to be reported undersubsection (d);and

(v) product use phase emissions; and(B) with respect to greenhouse gas emis-

sions reductions activities carried out since1990 and verified according to rules imple-menting subparagraphs (6) and (8) of thissubsection and submitted to the DesignatedAgency or Agencies before the date that isthree years after the date of enactment ofthis title, those reductions that have beenreported or submitted by an entity undersection 1605(b) of the Energy Policy Act of1992 (42 U.S.C. 13385(b)) or under other Fed-eral or State voluntary greenhouse gas re-duction programs.

(5) TYPES OF ACTIVITIES.—Under paragraph(4), an entity may report projects that re-duce greenhouse gas emissions or sequester agreenhouse gas, including—

(A) fuel switching;(B) energy efficiency improvements;(C) use of renewable energy;(D) use of combined heat and power sys-

tems;(E) management of cropland, grassland,

and grazing land;(F) forestry activities that increase forest

carbon stocks or reduce forest carbon mis-sions;

(G) carbon capture and storage;(H) methane recovery; and(I) greenhouse gas offset investments.(6) PROVISION OF VERIFICATION INFORMATION

BY REPORTING ENTITIES.—Each reporting en-tity shall provide information sufficient forthe Designated Agency or Agencies to verify,in accordance with measurement andverification criteria developed under Section1106, that the greenhouse gas report of thereporting entity—

(A) has been accurately reported; and(B) in the case of each additional voluntary

report, represents—(i) actual reductions in direct greenhouse

gas emissions relative to historic emissionlevels and net of any increases in directemissions and indirect emissions describedin clauses (iv) and (v) of paragraph (1)(B), or

(ii) actual increases in net sequestration.(7) INDEPENDENT THIRD-PARTY

VERIFICATION.—A reporting entity may—(A) obtain independent third-party

verification; and

CONGRESSIONAL RECORD — SENATES1482 March 5, 2002(B) present the results of the third-party

verification to the Designated Agency orAgencies for consideration by the DesignatedAgency or Agencies in carrying out para-graph (1).

(8) DATA QUALITY.—The rule under sub-section (c) shall establish procedures andprotocols needed to—

(A) prevent the reporting of some or all ofthe same greenhouse gas emissions or emis-sion reductions by more than one reportingentity;

(B) provide for corrections to errors in datasubmitted to the database;

(C) provide for adjustment to data by re-porting entities that have had a significantorganizational change (including mergers,acquisitions, and divestiture), in order tomaintain comparability among data in thedatabase over time;

(D) provide for adjustments to reflect newtechnologies or methods for measuring orcalculating greenhouse gas emissions; and

(E) account for changes in registration ofownership of emissions reductions resultingfrom a voluntary private transaction be-tween reporting entities.

(9) AVAILABILITY OF DATA.—The DesignatedAgency or Agencies shall ensure that infor-mation in the database is published, acces-sible to the public, and made available inelectronic format on the Internet, except incases where the Designated Agency or Agen-cies determine that publishing or makingavailable the information would disclose in-formation vital to national security.

(10) DATA INFRASTRUCTURE.—The Des-ignated Agency or Agencies shall ensure thatthe database established by this Act shallutilize and is integrated with existing Fed-eral, regional, and state greenhouse gas datacollection and reporting systems to the max-imum extent possible and avoid duplicationof such systems.

(11) ADDITIONAL ISSUES TO BE CONSIDERED.—In promulgating the rules for and imple-menting the Database, the Designated Agen-cy or Agencies shall consider a broad rangeof issues involved in establishing an effectivedatabase, including the following:

(A) UNITS FOR REPORTING.—The appropriateunits for reporting each greenhouse gas, andwhether to require reporting of emission effi-ciency rates (including emissions per kilo-watt-hour for electricity generators) in addi-tion to mass emissions of greenhouse gases,

(B) INTERNATIONAL CONSISTENCY.—Thegreenhouse gas reduction and sequestrationmethods and standards applied in othercountries, as applicable or relevant; and

(C) DATA SUFFICIENCY.—The extent towhich available fossil fuels, greenhouse gasemissions, and greenhouse gas productionand importation data are adequate to imple-ment a comprehensive National GreenhouseGas Database.

(e) ENFORCEMENT.—The Attorney Generalmay, at the request of the Designated Agen-cy or Agencies, bring a civil action in UnitedStates District Court against an entity thatfails to comply with reporting requirementsunder this section, to impose a civil penaltyof not more than $25,000 for each day thatthe failure to comply continues.

(f) ANNUAL REPORT.—The Designated Agen-cy or Agencies shall publish an annual reportthat—

(1) describes the total greenhouse gas emis-sions and emission reductions reported tothe database;

(2) provides entity-by-entity and sector-by-sector analyses of the emissions and emis-sion reductions reported; and

(3) describes the atmospheric concentra-tions of greenhouse gases and tracks such in-formation over time.

SEC. 1105. REPORT ON STATUTORY CHANGESAND HARMONIZATION.

Not later than 3 years after the date of en-actment of this title, the President shallsubmit to Congress a report identifying anychanges needed to this title or to other pro-visions of law to improve the accuracy or op-eration of the Greenhouse Gas Database andrelated programs under this title.SEC. 1106. MEASUREMENT AND VERIFICATION.

The Designated Agency or Agencies shall,not later than 1 year after the date of enact-ment of this title, design and develop com-prehensive measurement and verificationmethods and standards to ensure a con-sistent and technically accurate record ofgreenhouse gas emissions, reductions, andatmospheric concentrations for use in thenational greenhouse gas database. The Agen-cy or Agencies shall periodically review andrevise these methods and standards as nec-essary.SEC. 1107. INDEPENDENT REVIEW.

(a) The General Accounting Office shallsubmit a report to Congress five years afterthe date of enactment of this title, and everythree years thereafter, providing a review ofthe efficacy of the implementation and oper-ation of the National Greenhouse Gas Data-base established in section 1104 and makingrecommendations for improvements to theprograms created pursuant to this title andchanges to the law that will achieve a con-sistent and technically accurate record ofgreenhouse gas emissions, reductions, andatmospheric concentrations and the otherpurposes of this title.

(b) The Designated Agency or Agenciesshall enter into an agreement with the Na-tional Academy of Sciences to review thescientific methods, assumptions and stand-ards used by the Agency or Agencies imple-menting this title, and to report to Congressnot later than four years after the date of en-actment of this title with recommendationsfor improving those methods and standardsor related elements of the programs or struc-ture of the reporting and registry system es-tablished by this title.SEC. 1108. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriatedsuch sums as are necessary to carry out theactivities and programs included in thistitle.

DIVISION E—ENHANCING RESEARCH,DEVELOPMENT, AND TRAINING

TITLE XII—ENERGY RESEARCH ANDDEVELOPMENT PROGRAMS

SEC. 1201. SHORT TITLE.This division may be cited as the ‘‘Energy

Science and Technology Enhancement Act of2002’’.SEC. 1202. FINDINGS.

The Congress finds the following:(1) A coherent national energy strategy re-

quires an energy research and developmentprogram that supports basic energy researchand provides mechanisms to develop, dem-onstrate, and deploy new energy tech-nologies in partnership with industry.

(2) An aggressive national energy research,development, demonstration, and technologydeployment program is an integral part of anational climate change strategy, because itcan reduce—

(A) United States energy intensity by 1.9percent per year from 1999 to 2020;

(B) United States energy consumption in2020 by 8 quadrillion Btu from otherwise ex-pected levels; and

(C) United States carbon dioxide emissionsfrom expected levels by 166 million metrictons in carbon equivalent in 2020.

(3) An aggressive national energy research,development, demonstration, and technologydeployment program can help maintain do-

mestic United States production of energy,increase United States hydrocarbon reservesby 14 percent, and lower natural gas pricesby 20 percent, compared to estimates for2020.

(4) An aggressive national energy research,development, demonstration, and technologydeployment program is needed if UnitedStates suppliers and manufacturers are tocompete in future markets for advanced en-ergy technologies.SEC. 1203. DEFINITIONS.

In this title:(1) DEPARTMENT.—The term ‘‘Department’’

means the Department of Energy.(2) DEPARTMENTAL MISSION.—The term ‘‘de-

partmental mission’’ means any of the func-tions vested in the Secretary of Energy bythe Department of Energy Organization Act(42 U.S.C. 7101 et seq.) or other law.

(3) INSTITUTION OF HIGHER EDUCATION.—Theterm ‘‘institution of higher education’’ hasthe meaning given that term in section1201(a) of the Higher Education Act of 1965(20 U.S.C. 1141(a));

(4) NATIONAL LABORATORY.—The term ‘‘Na-tional Laboratory’’ means any of the fol-lowing multi-purpose laboratories owned bythe Department of Energy—

(A) Argonne National Laboratory;(B) Brookhaven National Laboratory;(C) Idaho National Engineering and Envi-

ronmental Laboratory;(D) Lawrence Berkeley National Labora-

tory;(E) Lawrence Livermore National Labora-

tory;(F) Los Alamos National Laboratory;(G) National Energy Technology Labora-

tory;(H) National Renewable Energy Labora-

tory;(I) Oak Ridge National Laboratory;(J) Pacific Northwest National Laboratory;

or(K) Sandia National Laboratory.(5) SECRETARY.—The term ‘‘Secretary’’

means the Secretary of Energy.(6) TECHNOLOGY DEPLOYMENT.—The term

‘‘technology deployment’’ means activitiesto promote acceptance and utilization oftechnologies in commercial application, in-cluding activities undertaken pursuant tosection 7 of the Federal Nonnuclear EnergyResearch and Development Act of 1974 (42U.S.C. 5906) or section 6 of the Renewable En-ergy and Energy Efficiency Technology Com-petitiveness Act of 1989 (42 U.S.C. 12007).SEC. 1204. CONSTRUCTION WITH OTHER LAWS.

Except as otherwise provided in this titleand title XIV, the Secretary shall carry outthe research, development, demonstration,and technology deployment programs au-thorized by this title in accordance with theAtomic Energy Act of 1954 (42 U.S.C. 2011 etseq.), the Federal Nonnuclear Research andDevelopment Act of 1974 (42 U.S.C. 5901 etseq.), the Energy Policy Act of 1992 (42 U.S.C.13201 et seq.), or any other Act under whichthe Secretary is authorized to carry out suchactivities.

Subtitle A—Energy EfficiencySEC. 1211. ENHANCED ENERGY EFFICIENCY RE-

SEARCH AND DEVELOPMENT.(a) PROGRAM DIRECTION.—The Secretary

shall conduct balanced energy research, de-velopment, demonstration, and technologydeployment programs to enhance energy effi-ciency in buildings, industry, power tech-nologies, and transportation.

(b) PROGRAM GOALS.—(1) ENERGY-EFFICIENT HOUSING.—The goal of

the energy-efficient housing program shallbe to develop, in partnership with industry,enabling technologies (including lightingtechnologies), designs, production methods,and supporting activities that will, by 2010—

CONGRESSIONAL RECORD — SENATE S1483March 5, 2002(A) cut the energy use of new housing by 50

percent, and(B) reduce energy use in existing homes by

30 percent.(2) INDUSTRIAL ENERGY EFFICIENCY.—The

goal of the industrial energy efficiency pro-gram shall be to develop, in partnership withindustry, enabling technologies, designs, pro-duction methods, and supporting activitiesthat will, by 2010, enable energy-intensive in-dustries such as the following industries toreduce their energy intensity by at least 25percent—

(A) the wood product manufacturing indus-try;

(B) the pulp and paper industry;(C) the petroleum and coal products manu-

facturing industry;(D) the mining industry;(E) the chemical manufacturing industry;(F) the glass and glass product manufac-

turing industry;(G) the iron and steel mills and ferroalloy

manufacturing industry;(H) the primary aluminum production in-

dustry;(I) the foundries industry; and(J) U.S. agriculture.(3) TRANSPORTATION ENERGY EFFICIENCY.—

The goal of the transportation energy effi-ciency program shall be to develop, in part-nership with industry, technologies that willenable the achievement—

(A) by 2010, passenger automobiles with afuel economy of 80 miles per gallon;

(B) by 2010, light trucks (classes 1 and 2a)with a fuel economy of 60 miles per gallon;

(C) by 2010, medium trucks and buses(classes 2b through 6 and class 8 transitbuses) with a fuel economy, in ton-miles pergallon, that is three times that of year 2000equivalent vehicles;

(D) by 2010, heavy trucks (classes 7 and 8)with a fuel economy, in ton-miles per gallon,that is two times that of year 2000 equivalentvehicles; and

(E) by 2015, the production of fuel-cell pow-ered passenger vehicles with a fuel economyof 110 miles per gallon.

(4) ENERGY EFFICIENT DISTRIBUTED GENERA-TION.—The goals of the energy efficient on-site generation program shall be to help re-move environmental and regulatory barriersto on-site, or distributed, generation andcombined heat and power by developingtechnologies by 2015 that achieve—

(A) electricity generating efficienciesgreater than 40 percent for on-site genera-tion technologies based upon natural gas, in-cluding fuel cells, microturbines, recipro-cating engines and industrial gas turbines;

(B) combined heat and power total (elec-tric and thermal) efficiencies of more than 85percent;

(C) fuel flexibility to include hydrogen,biofuels and natural gas;

(D) near zero emissions of pollutants thatform smog and acid rain;

(E) reduction of carbon dioxide emissionsby at least 40 percent;

(F) packaged system integration at enduser facilities providing complete services inheating, cooling, electricity and air quality;and

(G) increased reliability for the consumerand greater stability for the national elec-tricity grid.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out research, de-velopment, demonstration, and technologydeployment activities under this subtitle—

(1) $700,000,000 for fiscal year 2003;(2) $784,000,000 for fiscal year 2004;(3) $878,000,000 for fiscal year 2005; and(4) $983,000,000 for fiscal year 2006.(d) LIMITATION ON USE OF FUNDS.—None of

the funds authorized to be appropriated in

subsection (c) may be used for the followingprograms of the Department—

(1) Weatherization Assistance Program;(2) State Energy Program; or(3) Federal Energy Management Program.

SEC. 1212. ENERGY EFFICIENCY SCIENCE INITIA-TIVE.

(a) ESTABLISHMENT AND AUTHORIZATION OFAPPROPRIATIONS.—From amounts authorizedunder section 1211(c), there are authorized tobe appropriated not more than $50,000,000 inany fiscal year, for an Energy EfficiencyScience Initiative to be managed by the As-sistant Secretary in the Department with re-sponsibility for energy conservation undersection 203(a)(9) of the Department of EnergyOrganization Act (42 U.S.C. 7133(a)(9)), inconsultation with the Director of the Officeof Science, for grants to be competitivelyawarded and subject to peer review for re-search relating to energy efficiency.

(b) REPORT.—The Secretary of Energy shallsubmit to the Committee on Science and theCommittee on Appropriations of the UnitedStates House of Representatives, and to theCommittee on Energy and Natural Resourcesand the Committee on Appropriations of theUnited States Senate, an annual report onthe activities of the Energy EfficiencyScience Initiative, including a description ofthe process used to award the funds and anexplanation of how the research relates toenergy efficiency.SEC. 1213. NEXT GENERATION LIGHTING INITIA-

TIVE.(a) ESTABLISHMENT.—There is established

in the Department a Next Generation Light-ing Initiative to research, develop, and con-duct demonstration activities on advancedsolid-state lighting technologies based onwhite light emitting diodes.

(b) OBJECTIVES.—(1) IN GENERAL.—The objectives of the ini-

tiative shall be to develop, by 2011, advancedsolid-state lighting technologies based onwhite light emitting diodes that, comparedto incandescent and fluorescent lightingtechnologies, are—

(A) longer lasting;(B) more energy-efficient; and(C) cost-competitive.(2) INORGANIC WHITE LIGHT EMITTING

DIODE.—The objective of the initiative withrespect to inorganic white light emitting di-odes shall be to develop an inorganic whitelight emitting diode that has an efficiency of160 lumens per watt and a 10-year lifetime.

(3) ORGANIC WHITE LIGHT EMITTING DIODE.—The objective of the initiative with respectto organic white light emitting diodes shallbe to develop an organic white light emittingdiode with an efficiency of 100 lumens perwatt with a 5-year lifetime that—

(A) illuminates over a full color spectrum;(B) covers large areas over flexible sur-

faces; and(C) does not contain harmful pollutants

typical of fluorescent lamps such as mer-cury.

(c) CONSORTIUM.—(1) IN GENERAL.—The Secretary shall ini-

tiate and manage basic and manufacturing-related research on advanced solid-statelighting technologies based on white lightemitting diodes for the initiative, in co-operation with the Next Generation LightingInitiative Consortium.

(2) COMPOSITION.—The consortium shall becomposed of firms, national laboratories,and other entities so that the consortium isrepresentative of the United States solidstate lighting research, development, andmanufacturing expertise as a whole.

(3) FUNDING.—The consortium shall befunded by—

(A) participation fees; and(B) grants provided under subsection (e)(1).

(4) ELIGIBILITY.—To be eligible to receive agrant under subsection (e)(1), the consortiumshall—

(A) enter into a consortium participationagreement that—

(i) is agreed to by all participants; and(ii) describes the responsibilities of partici-

pants, participation fees, and the scope of re-search activities; and

(B) develop an annual program plan.(5) INTELLECTUAL PROPERTY.—Participants

in the consortium shall have royalty-freenonexclusive rights to use intellectual prop-erty derived from consortium research con-ducted under subsection (e)(1).

(d) PLANNING BOARD.—(1) IN GENERAL.—Not later than 90 days

after the establishment of the consortium,the Secretary shall establish and appoint themembers of a planning board, to be known asthe ‘‘Next Generation Lighting InitiativePlanning Board’’, to assist the Secretary incarrying out this section.

(2) COMPOSITION.—The planning board shallbe composed of—

(A) 4 members from universities, nationallaboratories, and other individuals with ex-pertise in advanced solid-state lighting andtechnologies based on white light emittingdiodes; and

(B) 3 members from a list of not less than6 nominees from industry submitted by theconsortium.

(3) STUDY.—(A) IN GENERAL.—Not later than 90 days

after the date on which the Secretary ap-points members to the planning board, theplanning board shall complete a study onstrategies for the development and imple-mentation of advanced solid-state lightingtechnologies based on white light emittingdiodes.

(B) REQUIREMENTS.—The study shall de-velop a comprehensive strategy to imple-ment, through the initiative, the use ofwhite light emitting diodes to increase en-ergy efficiency and enhance United Statescompetitiveness.

(C) IMPLEMENTATION.—As soon as prac-ticable after the study is submitted to theSecretary, the Secretary shall implementthe initiative in accordance with the rec-ommendations of the planning board.

(4) TERMINATION.—The planning board shallterminate upon completion of the studyunder paragraph (3).

(e) GRANTS.—(1) FUNDAMENTAL RESEARCH.—The Sec-

retary, through the consortium, shall makegrants to conduct basic and manufacturing-related research related to advanced solid-state lighting technologies based on whitelight emitting diode technologies.

(2) TECHNOLOGY DEVELOPMENT AND DEM-ONSTRATION.—The Secretary shall enter intogrants, contracts, and cooperative agree-ments to conduct or promote technology re-search, development, or demonstration ac-tivities. In providing funding under thisparagraph, the Secretary shall give pref-erence to participants in the consortium.

(3) CONTINUING ASSESSMENT.—The consor-tium, in collaboration with the Secretary,shall formulate annual operating and per-formance objectives, develop technologyroadmaps, and recommend research and de-velopment priorities for the initiative. TheSecretary may also establish or utilize advi-sory committees, or enter into appropriatearrangements with the National Academy ofSciences, to conduct periodic reviews of theinitiative. The Secretary shall consider theresults of such assessment and review activi-ties in making funding decisions under para-graphs (1) and (2) of this subsection.

CONGRESSIONAL RECORD — SENATES1484 March 5, 2002(4) TECHNICAL ASSISTANCE.—The National

Laboratories shall cooperate with and pro-vide technical assistance to persons carryingout projects under the initiative.

(5) AUDITS.—(A) IN GENERAL.—The Secretary shall re-

tain an independent, commercial auditor todetermine the extent to which funds madeavailable under this section have been ex-pended in a manner that is consistent withthe objectives under subsection (b) and, inthe case of funds made available to the con-sortium, the annual program plan of the con-sortium under subsection (c)(4)(B).

(B) REPORTS.—The auditor shall submit toCongress, the Secretary, and the ComptrollerGeneral of the United States an annual re-port containing the results of the audit.

(6) APPLICABLE LAW.—Grants, contracts,and cooperative agreements under this sec-tion shall not be subject to the Federal Ac-quisition Regulation.

(f) PROTECTION OF INFORMATION.—Informa-tion obtained by the Federal Government ona confidential basis under this section shallbe considered to constitute trade secrets andcommercial or financial information ob-tained from a person and privileged or con-fidential under section 552(b)(4) of title 5,United States Code.

(g) AUTHORIZATION OF APPROPRIATIONS.—Inaddition to amounts authorized under sec-tion 1211(c), there are authorized to be appro-priated for activities under this section$50,000,000 for each of fiscal years 2003through 2011.

(h) DEFINITIONS.—In this section:(1) ADVANCED SOLID-STATE LIGHTING.—The

term ‘‘advanced solid-state lighting’’ meansa semiconducting device package and deliv-ery system that produces white light usingexternally applied voltage.

(2) CONSORTIUM.—The term ‘‘consortium’’means the Next Generation Lighting Initia-tive Consortium under subsection (c).

(3) INITIATIVE.—The term ‘‘initiative’’means the Next Generation Lighting Initia-tive established under subsection (a).

(4) INORGANIC WHITE LIGHT EMITTINGDIODE.—The term ‘‘inorganic white lightemitting diode’’ means an inorganicsemiconducting package that produces whitelight using externally applied voltage.

(5) ORGANIC WHITE LIGHT EMITTING DIODE.—The term ‘‘organic white light emittingdiode’’ means an organic semiconductingcompound that produces white light usingexternally applied voltage.

(6) WHITE LIGHT EMITTING DIODE.—The term‘‘white light emitting diode’’ means—

(A) an inorganic white light emittingdiode; or

(B) an organic white light emitting diode.SEC. 1214. RAILROAD EFFICIENCY.

(a) ESTABLISHMENT.—The Secretary shall,in cooperation with the Secretaries of Trans-portation and Defense, and the Adminis-trator of the Environmental ProtectionAgency, establish a public-private researchpartnership involving the federal govern-ment, railroad carriers, locomotive manufac-turers, and the Association of AmericanRailroads. The goal of the initiative shall in-clude developing and demonstrating loco-motive technologies that increase fuel econ-omy, reduce emissions, improve safety, andlower costs.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tocarry out the requirements of this section$60,000,000 for fiscal year 2003 and $70,000,000for fiscal year 2004.

Subtitle B—Renewable EnergySEC. 1221. ENHANCED RENEWABLE ENERGY RE-


shall conduct balanced energy research, de-

velopment, demonstration, and technologydeployment programs to enhance the use ofrenewable energy.

(b) PROGRAM GOALS.—(1) WIND POWER.—The goals of the wind

power program shall be to develop, in part-nership with industry, a variety of advancedwind turbine designs and manufacturingtechnologies that are cost-competitive withfossil-fuel generated electricity, with a focuson developing advanced low wind speed tech-nologies that, by 2007, will enable the ex-panding utilization of widespread class 3 and4 winds.

(2) PHOTOVOLTAICS.—The goal of the photo-voltaic program shall be to develop, in part-nership with industry, total photovoltaicsystems with installed costs of $4000 per peakkilowatt by 2005 and $2000 per peak kilowattby 2015.

(3) SOLAR THERMAL ELECTRIC SYSTEMS.—The goal of the solar thermal electric sys-tems program shall be to develop, in partner-ship with industry, solar power technologies(including baseload solar power) that arecompetitive with fossil-fuel generated elec-tricity by 2015, by combining high-efficiencyand high-temperature receivers with ad-vanced thermal storage and power cycles.

(4) BIOMASS-BASED POWER SYSTEMS.—Thegoal of the biomass program shall be to de-velop, in partnership with industry, inte-grated power-generating systems, advancedconversion, and feedstock technologies capa-ble of producing electric power that is cost-competitive with fossil-fuel generated elec-tricity by 2010, together with the productionof fuels, chemicals, and other products underparagraph (6).

(5) GEOTHERMAL ENERGY.—The goal of thegeothermal program shall be to develop, inpartnership with industry, technologies andprocesses based on advanced hydrothermalsystems and advanced heat and power sys-tems, including geothermal heat pump tech-nology, with a specific focus on—

(A) improving exploration and character-ization technology to increase the prob-ability of drilling successful wells from 20percent to 40 percent by 2006;

(B) reducing the cost of drilling by 2008 toan average cost of $150 per foot; and

(C) developing enhanced geothermal sys-tems technology with the potential to doublethe useable geothermal resource base.

(6) BIOFUELS.—The goal of the biofuels pro-gram shall be to develop, in partnership withindustry, advanced biochemical andthermochemical conversion technologies ca-pable of making liquid and gaseous fuelsfrom cellulosic feedstocks, that are price-competitive with gasoline or diesel, in eitherinternal combustion engines or fuel cell ve-hicles, by 2010.

(7) HYDROGEN-BASED ENERGY SYSTEMS.—Thegoals of the hydrogen program shall be tosupport research and development on tech-nologies for production, storage, and use ofhydrogen, including fuel cells and, specifi-cally, fuel-cell vehicle development activi-ties under section 1211.

(8) HYDROPOWER.—The goal of the hydro-power program shall be to develop, in part-nership with industry, a new generation ofturbine technologies that are less damagingto fish and aquatic ecosystems.

(9) ELECTRIC ENERGY SYSTEMS AND STOR-AGE.—The goals of the electric energy andstorage program shall be to develop, in part-nership with industry—

(A) generators and transmission, distribu-tion, and storage systems that combine highcapacity with high efficiency;

(B) technologies to interconnect distrib-uted energy resources with electric powersystems, comply with any national inter-connection standards, have a minimum 10-year useful life;

(C) advanced technologies to increase theaverage efficiency of electric transmissionfacilities in rural and remote areas, givingpriority for demonstrations to advancedtransmission technologies that are being orhave been field tested;

(D) the use of new transmission tech-nologies, including composite conductor ma-terials, advanced protection devices, control-lers, and other cost-effective methods andtechnologies;

(E) the use of superconducting materials inpower delivery equipment such as trans-mission and distribution cables, trans-formers, and generators;

(F) energy management technologies forenterprises with aggregated loads and dis-tributed generation, such as power parks;

(G) economic and system models to meas-ure the costs and benefits of improved sys-tem performance;

(H) hybrid distributed energy systems tooptimize two or more distributed or on-sitegeneration technologies; and

(I) real-time transmission and distributionsystem control technologies that provide forcontinual exchange of information betweengeneration, transmission, distribution, andend-user facilities.

(c) SPECIAL PROJECTS.—In carrying outthis section, the Secretary shalldemonstrate—

(1) the use of advanced wind power tech-nology, biomass, geothermal energy systems,and other renewable energy technologies toassist in delivering electricity to rural andremote locations; and

(2) the combined use of wind power andcoal gasification technologies.

(d) FINANCIAL ASSISTANCE TO RURALAREAS.—In carrying out special projectsunder subsection (c), the Secretary may pro-vide financial assistance to rural electric co-operatives and other rural entities.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out research, de-velopment, demonstration, and technologydeployment activities under this subtitle—


SEC. 1222. BIOENERGY PROGRAMS.(a) PROGRAM DIRECTION.—The Secretary

shall carry out research, development, dem-onstration, and technology development ac-tivities related to bioenergy, including pro-grams under paragraphs (4) and (6) of section1221(b).

(b) AUTHORIZATION OF APPROPRIATIONS.—(1) BIOPOWER ENERGY SYSTEMS.—From

amounts authorized under section 1221(e),there are authorized to be appropriated tothe Secretary for biopower energy systems—

(A) $60,300,000 for fiscal year 2003;(B) $69,300,000 for fiscal year 2004;(C) $79,600,000 for fiscal year 2005; and(D) $86,250,000 for fiscal year 2006.(2) BIOFUELS ENERGY SYSTEMS.—From

amounts authorized under section 1221(e),there are authorized to be appropriated tothe Secretary for biofuels energy systems—

(A) $57,500,000 for fiscal year 2003;(B) $66,125,000 for fiscal year 2004;(C) $76,000,000 for fiscal year 2005; and(D) $81,400,000 for fiscal year 2006.(3) INTEGRATED BIOENERGY RESEARCH AND

DEVELOPMENT.—The Secretary may use fundsauthorized under paragraph (1) or (2) for pro-grams, projects, or activities that integrateapplications for both biopower and biofuels,including cross-cutting research and devel-opment in feedstocks and economic analysis.SEC. 1223. HYDROGEN RESEARCH AND DEVELOP-

MENT.(a) SHORT TITLE.—This section may be

cited as the ‘‘Hydrogen Future Act of 2002’’.

CONGRESSIONAL RECORD — SENATE S1485March 5, 2002(b) PURPOSES.—Section 102(b) of the Spark

M. Matsunaga Hydrogen Research, Develop-ment, and Demonstration Act of 1990 (42U.S.C. 12401(b)) is amended by striking para-graphs (2) and (3) and inserting the following:

‘‘(2) to direct the Secretary to develop aprogram of technology assessment, informa-tion transfer, and education in which Fed-eral agencies, members of the transpor-tation, energy, and other industries, andother entities may participate;

‘‘(3) to develop methods of hydrogen pro-duction that minimize production of green-house gases, including developing—

‘‘(A) efficient production from non-renew-able resources; and

‘‘(B) cost-effective production from renew-able resources such as biomass, geothermal,wind, and solar energy; and

‘‘(4) to foster the use of hydrogen as amajor energy source, including developingthe use of hydrogen in—

‘‘(A) isolated villages, islands, and commu-nities in which other energy sources are notavailable or are very expensive; and

‘‘(B) foreign economic development, toavoid environmental damage from increasedfossil fuel use.’’.

(c) REPORT TO CONGRESS.—Section 103 ofthe Spark M. Matsunaga Hydrogen Research,Development, and Demonstration Act of 1990(42 U.S.C. 12402) is amended—

(1) in subsection (a), by striking ‘‘January1, 1999,’’ and inserting ‘‘1 year after the dateof enactment of the Hydrogen Future Act of2002, and biennially thereafter,’’;

(2) in subsection (b), by striking para-graphs (1) and (2) and inserting the following:

‘‘(1) an analysis of hydrogen-related activi-ties throughout the United States Govern-ment to identify productive areas for in-creased intragovernmental collaboration;

‘‘(2) recommendations of the HydrogenTechnical Advisory Panel established by sec-tion 108 for any improvements in the pro-gram that are needed, including rec-ommendations for additional legislation; and

‘‘(3) to the extent practicable, an analysisof State and local hydrogen-related activi-ties.’’; and

(3) by adding at the end the following:‘‘(c) COORDINATION PLAN.—The report under

subsection (a) shall be based on a comprehen-sive coordination plan for hydrogen energyprepared by the Secretary in consultationwith other Federal agencies.’’.

(d) HYDROGEN RESEARCH AND DEVELOP-MENT.—Section 104 of the Spark M. Matsu-naga Hydrogen Research, Development, andDemonstration Act of 1990 (42 U.S.C. 12403) isamended—

(1) in subsection (b)(1), by striking ‘‘mar-ketplace;’’ and inserting ‘‘marketplace, in-cluding foreign markets, particularly wherean energy infrastructure is not well devel-oped;’’;

(2) in subsection (e), by striking ‘‘thischapter’’ and inserting ‘‘this Act’’;

(3) by striking subsection (g) and insertingthe following:

‘‘(g) COST SHARING.—‘‘(1) INABILITY TO FUND ENTIRE COST.—The

Secretary shall not consider a proposal sub-mitted by a person from industry unless theproposal contains a certification that—

‘‘(A) reasonable efforts to obtain non-Fed-eral funding in the amount necessary to pay100 percent of the cost of the project havebeen made; and

‘‘(B) non-Federal funding in that amountcould not reasonably be obtained.

‘‘(2) NON-FEDERAL SHARE.—‘‘(A) IN GENERAL.—The Secretary shall re-

quire a commitment from non-Federalsources of at least 25 percent of the cost ofthe project.

‘‘(B) REDUCTION OR ELIMINATION.—The Sec-retary may reduce or eliminate the cost-

sharing requirement under subparagraph (A)for the proposed research and developmentproject, including for technical analyses,economic analyses, outreach activities, andeducational programs, if the Secretary de-termines that reduction or elimination isnecessary to achieve the objectives of thisAct.’’; and

(4) in subsection (i), by striking ‘‘this chap-ter’’ and inserting ‘‘this Act’’.

(e) DEMONSTRATIONS.—Section 105 of theSpark M. Matsunaga Hydrogen Research, De-velopment, and Demonstration Act of 1990(42 U.S.C. 12404) is amended by striking sub-section (c) and inserting the following:

‘‘(c) NON-FEDERAL SHARE.—‘‘(1) IN GENERAL.—Except as provided in

paragraph (2), the Secretary shall require acommitment from non-Federal sources of atleast 50 percent of the costs directly relatingto a demonstration project under this sec-tion.

‘‘(2) REDUCTION.—The Secretary may re-duce the non-Federal requirement underparagraph (1) if the Secretary determinesthat the reduction is appropriate consideringthe technological risks involved in theproject and is necessary to meet the objec-tives of this Act.’’.

(f) TECHNOLOGY TRANSFER.—Section 106 ofthe Spark M. Matsunaga Hydrogen Research,Development, and Demonstration Act of 1990(42 U.S.C. 12405) is amended—

(1) in subsection (a)—(A) in the first sentence—(i) by striking ‘‘The Secretary shall con-

duct a program designed to accelerate widerapplication’’ and inserting the following:

‘‘(1) IN GENERAL.—The Secretary shall con-duct a program designed to—

‘‘(A) accelerate wider application’’; and(ii) by striking ‘‘private sector’’ and insert-

ing ‘‘private sector; and‘‘(B) accelerate wider application of hydro-

gen technologies in foreign countries to in-crease the global market for the tech-nologies and foster global economic develop-ment without harmful environmental ef-fects.’’; and

(B) in the second sentence, by striking‘‘The Secretary’’ and inserting the following:

‘‘(2) ADVICE AND ASSISTANCE.—The Sec-retary’’; and

(2) in subsection (b)—(A) in paragraph (2), by redesignating sub-

paragraphs (A) through (D) as clauses (i)through (iv), respectively, and indenting ap-propriately;

(B) by redesignating paragraphs (1) and (2)as subparagraphs (A) and (B), respectively,and indenting appropriately;

(C) by striking ‘‘The Secretary, in’’ and in-serting the following:

‘‘(1) IN GENERAL.—The Secretary, in’’;(D) by striking ‘‘The information’’ and in-

serting the following:‘‘(2) ACTIVITIES.—The information’’; and(E) in paragraph (1) (as designated by sub-

paragraph (C))—(i) in subparagraph (A) (as redesignated by

subparagraph (B)), by striking ‘‘an inven-tory’’ and inserting ‘‘an update of the inven-tory’’; and

(ii) in subparagraph (B) (as redesignated bysubparagraph (B)), by striking ‘‘develop’’ andall that follows through ‘‘to improve’’ andinserting ‘‘develop with the National Aero-nautics and Space Administration, the De-partment of Energy, other Federal agenciesas appropriate, and industry, an informationexchange program to improve’’.

(g) TECHNICAL PANEL REVIEW.—(1) IN GENERAL.—Section 108 of the Spark

M. Matsunaga Hydrogen Research, Develop-ment, and Demonstration Act of 1990 (42U.S.C. 12407) is amended—

(A) in subsection (b)—

(i) by striking ‘‘(b) MEMBERSHIP.—Thetechnical panel shall be appointed’’ and in-serting the following:

‘‘(b) MEMBERSHIP.—‘‘(1) IN GENERAL.—The technical panel shall

be comprised of not fewer than 9 nor morethan 15 members appointed’’;

(ii) by striking the second sentence and in-serting the following:

‘‘(2) TERMS.—‘‘(A) IN GENERAL.—The term of a member

of the technical panel shall be not more than3 years.

‘‘(B) STAGGERED TERMS.—The Secretarymay appoint members of the technical panelin a manner that allows the terms of themembers serving at any time to expire atspaced intervals so as to ensure continuityin the functioning of the technical panel.

‘‘(C) REAPPOINTMENT.—A member of thetechnical panel whose term expires may bereappointed.’’; and

(iii) by striking ‘‘The technical panel shallhave a chairman,’’ and inserting the fol-lowing:

‘‘(3) CHAIRPERSON.—The technical panelshall have a chairperson,’’; and

(B) in subsection (d)—(i) in the matter preceding paragraph (1),

by striking ‘‘the following items’’;(ii) in paragraph (1), by striking ‘‘and’’ at

the end;(iii) in paragraph (2), by striking the period

at the end and inserting ‘‘; and’’; and(iv) by adding at the end the following:‘‘(3) the plan developed by the interagency

task force under section 202(b) of the Hydro-gen Future Act of 1996.’’.

(2) NEW APPOINTMENTS.—Not later than 180days after the date of enactment of this Act,the Secretary—

(A) shall review the membership composi-tion of the Hydrogen Technical AdvisoryPanel; and

(B) may appoint new members consistentwith the amendments made by subsection(a).

(h) AUTHORIZATION OF APPROPRIATIONS.—Section 109 of the Spark M. Matsunaga Hy-drogen Research, Development, and Dem-onstration Act of 1990 (42 U.S.C. 12408) isamended—

(1) in paragraph (8), by striking ‘‘and’’;(2) in paragraph (9), by striking the period

and inserting a semicolon; and(3) by adding at the end the following:‘‘(10) $65,000,000 for fiscal year 2003;‘‘(11) $70,000,000 for fiscal year 2004;‘‘(12) $75,000,000 for fiscal year 2005; and‘‘(13) $80,000,000 for fiscal year 2006.’’.(i) FUEL CELLS.—(1) INTEGRATION OF FUEL CELLS WITH HYDRO-

GEN PRODUCTION SYSTEMS.—Section 201 of theHydrogen Future Act of 1996 is amended—

(A) in subsection (a)—(i) by striking ‘‘(a) Not later than 180 days

after the date of enactment of this section,and subject’’ and inserting ‘‘(a) IN GEN-ERAL.—Subject’’; and

(B) by striking ‘‘with—’’ and all that fol-lows and inserting ‘‘into Federal, State, andlocal government facilities for stationaryand transportation applications.’’;

(2) in subsection (b), by striking ‘‘gas is’’and inserting ‘‘basis’’;

(3) in subsection (c)(2), by striking ‘‘sys-tems described in subsections (a)(1) and(a)(2)’’ and inserting ‘‘projects proposed’’;and

(4) by striking subsection (d) and insertingthe following:

‘‘(d) NON-FEDERAL SHARE.—‘‘(1) IN GENERAL.—Except as provided in

paragraph (2), the Secretary shall require acommitment from non-Federal sources of atleast 50 percent of the costs directly relatingto a demonstration project under this sec-tion.

CONGRESSIONAL RECORD — SENATES1486 March 5, 2002‘‘(2) REDUCTION.—The Secretary may re-

duce the non-Federal requirement underparagraph (1) if the Secretary determinesthat the reduction is appropriate consideringthe technological risks involved in theproject and is necessary to meet the objec-tives of this Act.’’.

(2) COOPERATIVE AND COST-SHARING AGREE-MENTS; INTEGRATION OF TECHNICAL INFORMA-TION.—Title II of the Hydrogen Future Act of1996 (42 U.S.C. 12403 note; Public Law 104–271)is amended by striking section 202 and in-serting the following:‘‘SEC. 202. INTERAGENCY TASK FORCE.

‘‘(a) ESTABLISHMENT.—Not later than 120days after the date of enactment of this sec-tion, the Secretary shall establish an inter-agency task force led by a Deputy AssistantSecretary of the Department of Energy andcomprised of representatives of—‘‘(1) the Office of Science and TechnologyPolicy;‘‘(2) the Department of Transportation;

‘‘(3) the Department of Defense;‘‘(4) the Department of Commerce (includ-

ing the National Institute for Standards andTechnology);

‘‘(5) the Environmental Protection Agency;‘‘(6) the National Aeronautics and Space

Administration; and‘‘(7) other agencies as appropriate.‘‘(b) DUTIES.—‘‘(1) IN GENERAL.—The task force shall de-

velop a plan for carrying out this title.‘‘(2) FOCUS OF PLAN.—The plan shall focus

on development and demonstration of inte-grated systems and components for—

‘‘(A) hydrogen production, storage, and usein Federal, State, and local governmentbuildings and vehicles;

‘‘(B) hydrogen-based infrastructure forbuses and other fleet transportation systemsthat include zero-emission vehicles; and

‘‘(C) hydrogen-based distributed power gen-eration, including the generation of com-bined heat, power, and hydrogen.‘‘SEC. 203. COOPERATIVE AND COST-SHARING

AGREEMENTS.‘‘The Secretary shall enter into coopera-

tive and cost-sharing agreements with Fed-eral, State, and local agencies for participa-tion by the agencies in demonstrations at fa-cilities administered by the agencies, withthe aim of integrating high efficiency hydro-gen systems using fuel cells into the facili-ties to provide immediate benefits and pro-mote a smooth transition to hydrogen as anenergy source.‘‘SEC. 204. INTEGRATION AND DISSEMINATION OF

TECHNICAL INFORMATION.‘‘The Secretary shall—‘‘(1) integrate all the technical information

that becomes available as a result of devel-opment and demonstration projects underthis title;

‘‘(2) make the information available to allFederal and State agencies for disseminationto all interested persons; and

‘‘(3) foster the exchange of generic, non-proprietary information and technology de-veloped under this title among industry, aca-demia, and Federal, State, and local govern-ments, to help the United States economyattain the economic benefits of the informa-tion and technology.‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated,for activities under this title—

‘‘(1) $25,000,000 for fiscal year 2003;‘‘(2) $30,000,000 for fiscal year 2004;‘‘(3) $35,000,000 for fiscal year 2005; and‘‘(4) $40,000,000 for fiscal year 2006.’’.

Subtitle C—Fossil EnergySEC. 1231. ENHANCED FOSSIL ENERGY RE-


shall conduct a balanced energy research, de-

velopment, demonstration, and technologydeployment program to enhance fossil en-ergy.

(b) PROGRAM GOALS.—(1) CORE FOSSIL RESEARCH AND DEVELOP-

MENT.—The goals of the core fossil researchand development program shall be to reduceemissions from fossil fuel use by developingtechnologies, including precombustion tech-nologies, by 2015 with the capability ofrealizing—

(A) electricity generating efficiencies of 60percent for coal and 75 percent for naturalgas;

(B) combined heat and power thermal effi-ciencies of more than 85 percent;

(C) fuels utilization efficiency of 75 percentfor the production of liquid transportationfuels from coal;

(D) near zero emissions of mercury and ofemissions that form fine particles, smog, andacid rain;

(E) reduction of carbon dioxide emissionsby at least 40 percent through efficiency im-provements and 100 percent with sequestra-tion; and

(F) improved reliability, efficiency, reduc-tions of air pollutant emissions, or reduc-tions in solid waste disposal requirements.

(2) OFFSHORE OIL AND NATURAL GAS RE-SOURCES.—The goal of the offshore oil andnatural gas resources program shall be to de-velop technologies to—

(A) extract methane hydrates in coastalwaters of the United States, and

(B) develop natural gas and oil reserves inthe ultra-deepwater of the Central and West-ern Gulf of Mexico.

(3) ONSHORE OIL AND NATURAL GAS RE-SOURCES.—The goal of the onshore oil andnatural gas resources program shall be to ad-vance the science and technology availableto domestic onshore petroleum producers,particularly independent operators,through—

(A) advances in technology for explorationand production of domestic petroleum re-sources, particularly those not accessiblewith current technology;

(B) improvement in the ability to extracthydrocarbons from known reservoirs andclasses of reservoirs; and

(C) development of technologies and prac-tices that reduce the threat to the environ-ment from petroleum exploration and pro-duction and decrease the cost of effective en-vironmental compliance.

(4) TRANSPORTATION FUELS.—The goals ofthe transportation fuels program shall be toincrease the price elasticity of oil supply anddemand by focusing research on—

(A) reducing the cost of producing trans-portation fuels from coal and natural gas;and

(B) indirect liquefaction of coal and bio-mass.

(c) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be

appropriated to the Secretary for carryingout research, development, demonstration,and technology deployment activities underthis section—

(A) $485,000,000 for fiscal year 2003;(B) $508,000,000 for fiscal year 2004;(C) $532,000,000 for fiscal year 2005; and(D) $558,000,000 for fiscal year 2006.(2) LIMITS ON USE OF FUNDS.—(A) None of the funds authorized in para-

graph (1) may be used for—(i) fossil energy environmental restoration;(ii) import/export authorization;(iii) program direction; or(iv) general plant projects.(B) COAL-BASED PROJECTS.—The coal-based

projects funded under this section shall beconsistent with the goals in subsection (b).The program shall emphasize carbon captureand sequestration technologies and gasifi-

cation technologies, including gasificationcombined cycle, gasification fuel cells, gas-ification co-production, hybrid gasification/combustion, or other technology with thepotential to address the goals in subpara-graphs (D) or (E) of subsection (b)(1).SEC. 1232. POWER PLANT IMPROVEMENT INITIA-

TIVE.

(a) PROGRAM DIRECTION.—The Secretaryshall conduct a balanced energy research, de-velopment, demonstration, and technologydeployment program to demonstrate com-mercial applications of advanced lignite andcoal-based technologies applicable to new orexisting power plants (including co-produc-tion plants) that advance the efficiency, en-vironmental performance, and cost-competi-tiveness substantially beyond technologiesthat are in operation or have been dem-onstrated by the date of enactment of thissubtitle.

(b) TECHNICAL MILESTONES.—(1) IN GENERAL.—The Secretary shall set

technical milestones specifying efficiencyand emissions levels that projects shall bedesigned to achieve. The milestones shall be-come more restrictive over the life of theprogram.

(2) 2010 EFFICIENCY MILESTONES.—The mile-stones shall be designed to achieve by 2010interim thermal efficiency of—

(A) 45 percent for coal of more than 9,000Btu;

(B) 44 percent for coal of 7,000 to 9,000 Btu;and

(C) 42 percent for coal of less than 7,000Btu.

(3) 2020 EFFICIENCY MILESTONES.—The mile-stones shall be designed to achieve by 2020thermal efficiency of—

(A) 60 percent for coal of more than 9,000Btu;

(B) 59 percent for coal of 7,000 to 9,000 Btu;and

(C) 57 percent for coal of less than 7,000Btu.

(4) EMISSIONS MILESTONES.—The milestonesshall include near zero emissions of mercuryand greenhouse gases and of emissions thatform fine particles, smog, and acid rain.

(5) REGIONAL AND QUALITY DIFFERENCES.—The Secretary may consider regional andquality differences in developing the effi-ciency milestones.

(c) PROJECT CRITERIA.—The demonstrationactivities proposed to be conducted at a newor existing coal-based electric generationunit having a nameplate rating of not lessthan 100 megawatts, excluding a co-produc-tion plant, shall include at least one of thefollowing—

(1) a means of recycling or reusing a sig-nificant portion of coal combustion wastesproduced by coal-based generating units, ex-cluding practices that are commerciallyavailable by the date of enactment of thissubtitle;

(2) a means of capture and sequesteringemissions, including greenhouse gases, in amanner that is more effective and substan-tially below the cost of technologies that arein operation or that have been demonstratedby the date of enactment of this subtitle;

(3) a means of controlling sulfur dioxideand nitrogen oxide or mercury in a mannerthat improves environmental performancebeyond technologies that are in operation orthat have been demonstrated by the date ofenactment of this subtitle—

(A) in the case of an existing unit, achievean overall thermal design efficiency im-provement compared to the efficiency of theunit as operated, of not less than—

(i) 7 percent for coal of more than 9,000Btu;

(ii) 6 percent for coal of 7,000 to 9,000 Btu;or

CONGRESSIONAL RECORD — SENATE S1487March 5, 2002(iii) 4 percent for coal of less than 7,000

Btu; or(B) in the case of a new unit, achieve the

efficiency milestones set for in subsection (b)compared to the efficiency of a typical unitas operated on the date of enactment of thissubtitle, before any retrofit, repowering, re-placement, or installation.

(d) STUDY.—The Secretary, in consultationwith the Administrator of the Environ-mental Protection Agency, the Secretary ofthe Interior, and interested entities (includ-ing coal producers, industries using coal, or-ganizations to promote coal or advanced coaltechnologies, environmental organizations,and organizations representing workers),shall conduct an assessment that identifiesperformance criteria that would be necessaryfor coal-based technologies to meet, to en-able future reliance on coal in an environ-mentally sustainable manner for electricitygeneration, use as a chemical feedstock, anduse as a transportation fuel.

(e) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be

appropriated to the Secretary for carryingout activities under this section $200,000,000for each of fiscal years 2003 through 2011.

(2) LIMITATION ON FUNDING OF PROJECTS.—Eighty percent of the funding under this sec-tion shall be limited to—

(A) carbon capture and sequestration tech-nologies;

(B) gasification technologies, includinggasification combined cycle, gasificationfuel cells, gasification co-production, or hy-brid gasification/combustion; or

(C) or other technology either by itself orin conjunction with other technologies hasthe potential to achieve near zero emissions.SEC. 1233. RESEARCH AND DEVELOPMENT FOR

ADVANCED SAFE AND EFFICIENTCOAL MINING TECHNOLOGIES.

(a) ESTABLISHMENT.—The Secretary of En-ergy shall establish a cooperative researchpartnership involving appropriate Federalagencies, coal producers, including associa-tions, equipment manufacturers, universitieswith mining engineering departments, andother relevant entities to—

(1) develop mining research priorities iden-tified by the Mining Industry of the FutureProgram and in the recommendations fromrelevant reports of the National Academy ofSciences on mining technologies;

(2) establish a process for conducting jointindustry-government research and develop-ment; and

(3) expand mining research capabilities atinstitutions of higher education.

(b) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be

appropriated to carry out activities underthis section, $12,000,000 in fiscal year 2003 and$15,000,000 in fiscal year 2004.

(2) LIMIT ON USE OF FUNDS.—Not less than20 percent of any funds appropriated in agiven fiscal year under this subsection shallbe dedicated to research carried out at insti-tutions of higher education.SEC. 1234. ULTRA-DEEPWATER AND UNCONVEN-

TIONAL RESOURCE EXPLORATIONAND PRODUCTION TECHNOLOGIES.

(a) DEFINITIONS.—In this section:(1) ADVISORY COMMITTEE.—The term ‘‘Advi-

sory Committee’’ means the Ultra-Deep-water and Unconventional Resource Tech-nology Advisory Committee establishedunder subsection (c).

(2) AWARD.—The term ‘‘award’’ means a co-operative agreement, contract, award orother types of agreement as appropriate.

(3) DEEPWATER.—The term ‘‘deepwater’’means a water depth that is greater than 200but less than 1,500 meters.

(4) ELIGIBLE AWARD RECIPIENT.—The term‘‘eligible award recipient’’ includes—

(A) a research institution;

(B) an institution of higher education;(C) a corporation; and(D) a managing consortium formed among

entities described in subparagraphs (A)through (C).

(5) INSTITUTION OF HIGHER EDUCATION.—Theterm ‘‘institution of higher education’’ hasthe meaning given the term in section 101 ofthe Higher Education Act of 1965 (20 U.S.C.1001).

(6) MANAGING CONSORTIUM.—The term‘‘managing consortium’’ means an entitythat—

(A) exists as of the date of enactment ofthis section;

(B)(i) is an organization described in sec-tion 501(c)(3) of the Internal Revenue Code of1986; and

(ii) is exempt from taxation under section501(a) of that Code;

(C) is experienced in planning and man-aging programs in natural gas or other pe-troleum exploration and production re-search, development, and demonstration; and

(D) has demonstrated capabilities and ex-perience in representing the views and prior-ities of industry, institutions of higher edu-cation and other research institutions in for-mulating comprehensive research and devel-opment plans and programs.

(7) PROGRAM.—The term ‘‘program’’ meansthe program of research, development, anddemonstration established under subsection(b)(1)(A).

(8) ULTRA-DEEPWATER.—The term ‘‘ultra-deepwater’’ means a water depth that isequal to or greater than 1,500 meters.

(9) ULTRA-DEEPWATER ARCHITECTURE.—Theterm ‘‘ultra-deepwater architecture’’ meansthe integration of technologies to exploreand produce natural gas or petroleum prod-ucts located at ultra-deepwater depths.

(10) ULTRA-DEEPWATER RESOURCE.—Theterm ‘‘ultra-deepwater resource’’ means nat-ural gas or any other petroleum resource (in-cluding methane hydrate) located in anultra-deepwater area.

(11) UNCONVENTIONAL RESOURCE.—The term‘‘unconventional resource’’ means naturalgas or any other petroleum resource locatedin a formation on physically or economicallyinaccessible land currently available forlease for purposes of natural gas or other pe-troleum exploration or production.

(b) ULTRA-DEEPWATER AND UNCONVEN-TIONAL EXPLORATION AND PRODUCTION PRO-GRAM.—

(1) ESTABLISHMENT.—(A) IN GENERAL.—The Secretary shall es-

tablish a program of research into, and de-velopment and demonstration of, ultra-deep-water resource and unconventional resourceexploration and production technologies.

(B) LOCATION; IMPLEMENTATION.—The pro-gram under this subsection shall be carriedout—

(i) in areas on the outer Continental Shelfthat, as of the date of enactment of this sec-tion, are available for leasing; and

(ii) on unconventional resources.(2) COMPONENTS.—The program shall in-

clude one or more programs for long-term re-search into—

(A) new deepwater ultra-deepwater re-source and unconventional resource explo-ration and production technologies; or

(B) environmental mitigation technologiesfor production of ultra-deepwater resourceand unconventional resource.

(c) ADVISORY COMMITTEE.—(1) ESTABLISHMENT.—Not later than 30 days

after the date of enactment of this section,the Secretary shall establish an advisorycommittee to be known as the ‘‘Ultra-Deep-water and Unconventional Resource Tech-nology Advisory Committee’’.

(2) MEMBERSHIP.—

(A) COMPOSITION.—Subject to subparagraph(B), the advisory committee shall be com-posed of 7 members appointed by the Sec-retary that—

(i) have extensive operational knowledge ofand experience in the natural gas and otherpetroleum exploration and production indus-try; and

(ii) are not Federal employees or employ-ees of contractors to a federal agency.

(B) EXPERTISE.—Of the members of the ad-visory committee appointed under subpara-graph (A)—

(i) at least 4 members shall have extensiveknowledge of ultra-deepwater resource ex-ploration and production technologies; and

(ii) at least 3 members shall have extensiveknowledge of unconventional resource explo-ration and production technologies.

(3) DUTIES.—The advisory committee shalladvise the Secretary in the implementationof this section.

(4) COMPENSATION.—A member of the advi-sory committee shall serve without com-pensation but shall receive travel expenses,including per diem in lieu of subsistence, inaccordance with applicable provisions undersubchapter I of chapter 57 of title 5, UnitedStates Code.

(d) AWARDS.—(1) TYPES OF AWARDS.—(A) ULTRA-DEEPWATER RESOURCES.—(i) IN GENERAL.—The Secretary shall make

awards for research into, and developmentand demonstration of, ultra-deepwater re-source exploration and productiontechnologies—

(I) to maximize the value of the ultra-deep-water resources of the United States;

(II) to increase the supply of ultra-deep-water resources by lowering the cost and im-proving the efficiency of exploration andproduction of such resources; and

(III) to improve safety and minimize nega-tive environmental impacts of that explo-ration and production.

(ii) ULTRA-DEEPWATER ARCHITECTURE.—Infurtherance of the purposes described inclause (i), the Secretary shall, where appro-priate, solicit proposals from a managingconsortium to develop and demonstratenext-generation architecture for ultra-deep-water resource production.

(B) UNCONVENTIONAL RESOURCES.—The Sec-retary shall make awards—

(i) to carry out research into, and develop-ment and demonstration of, technologies tomaximize the value of unconventional re-sources; and

(ii) to develop technologies tosimultaneously—

(I) increase the supply of unconventionalresources by lowering the cost and improv-ing the efficiency of exploration and produc-tion of unconventional resources; and

(II) improve safety and minimize negativeenvironmental impacts of that explorationand production.

(2) CONDITIONS.—An award made under thissubsection shall be subject to the followingconditions:

(A) MULTIPLE ENTITIES.—If an award recipi-ent is composed of more than one eligible or-ganization, the recipient shall provide asigned contract, agreed to by all eligible or-ganizations comprising the award recipient,that defines, in a manner that is consistentwith all applicable law in effect as of thedate of the contract, all rights to intellec-tual property for—

(i) technology in existence as of that date;and

(ii) future inventions conceived and devel-oped using funds provided under the award.

(B) COMPONENTS OF APPLICATION.—An appli-cation for an award for a demonstration

CONGRESSIONAL RECORD — SENATES1488 March 5, 2002project shall describe with specificity any in-tended commercial applications of the tech-nology to be demonstrated.

(C) COST SHARING.—Non-Federal cost shar-ing shall be in accordance with section 1403.

(e) PLAN AND FUNDING.—(1) IN GENERAL.—The Secretary, and where

appropriate, a managing consortium undersubsection (d)(1)(A)(ii), shall formulate an-nual operating and performance objectives,develop multi-year technology roadmaps,and establish research and development pri-orities for the funding of activities underthis section which will serve as guidelinesfor making awards including cost-matchingobjectives.

(2) INDUSTRY INPUT.—In carrying out thisprogram, the Secretary shall promote max-imum industry input through the use ofmanaging consortia or other organizationsin planning and executing the research areasand conducting workshops or reviews to en-sure that this program focuses on industryproblems and needs.

(f) AUDITING.—(1) IN GENERAL.—The Secretary shall retain

an independent, commercial auditor to de-termine the extent to which funds author-ized by this section, provided through a man-aging consortium, are expended in a mannerconsistent with the purposes of this section.

(2) REPORTS.—The auditor retained underparagraph (1) shall submit to the Secretary,and the Secretary shall transmit to the ap-propriate congressional committees, an an-nual report that describes—

(A) the findings of the auditor under para-graph (1); and

(B) a plan under which the Secretary mayremedy any deficiencies identified by theauditor.

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary such sums as may be nec-essary to carry out this section.

(h) TERMINATION OF AUTHORITY.—The au-thority provided by this section shall termi-nate on September 30, 2009.

(i) SAVINGS PROVISION.—Nothing in thissection is intended to displace, duplicate ordiminish any previously authorized researchactivities of the Department of Energy.SEC. 1235. RESEARCH AND DEVELOPMENT FOR

NEW NATURAL GAS TRANSPOR-TATION TECHNOLOGIES.

The Secretary of Energy shall conduct acomprehensive five-year program for re-search, development and demonstration toimprove the reliability, efficiency, safetyand integrity of the natural gas transpor-tation and distribution infrastructure andfor distributed energy resources (includingmicroturbines, fuel cells, advanced engine-generators, gas turbines, reciprocating en-gines, hybrid power generation systems, andall ancillary equipment for dispatch, controland maintenance).SEC. 1236. AUTHORIZATION OF APPROPRIATIONS

FOR OFFICE OF ARCTIC ENERGY.There are authorized to be appropriated to

the Secretary for the Office of Arctic Energyunder section 3197 of the Floyd D. Spence Na-tional Defense Authorization Act for FiscalYear 2001 (Public Law 106–398) such sums asmay be necessary, but not to exceed$25,000,000 for each of fiscal years 2003through 2011.

Subtitle D—Nuclear EnergySEC. 1241. ENHANCED NUCLEAR ENERGY RE-


shall conduct an energy research, develop-ment, demonstration, and technology de-ployment program to enhance nuclear en-ergy.

(b) PROGRAM GOALS.—The program shall—(1) support research related to existing

United States nuclear power reactors to ex-

tend their lifetimes and increase their reli-ability while optimizing their current oper-ations for greater efficiencies;

(2) examine advanced proliferation-resist-ant and passively safe reactor designs, newreactor designs with higher efficiency, lowercost, and improved safety, proliferation-re-sistant and high burn-up nuclear fuels, mini-mization of generation of radioactive mate-rials, improved nuclear waste managementtechnologies, and improved instrumentationscience;

(3) attract new students and faculty to thenuclear sciences and nuclear engineering andrelated fields (including health physics andnuclear and radiochemistry) through—

(A) university-based fundamental researchfor existing faculty and new junior faculty;

(B) support for the re-licensing of existingtraining reactors at universities in conjunc-tion with industry; and

(C) completing the conversion of existingtraining reactors with proliferation resistantfuels that are low enriched and to adaptthose reactors to new investigative uses;

(4) maintain a national capability and in-frastructure to produce medical isotopes andensure a well trained cadre of nuclear medi-cine specialists in partnership with industry;

(5) ensure that our nation has adequate ca-pability to power future satellite and spacemissions; and

(6) maintain, where appropriate through aprioritization process, a balanced researchinfrastructure so that future research pro-grams can use these facilities.

(c) AUTHORIZATION OF APPROPRIATIONS.—(1) CORE NUCLEAR RESEARCH PROGRAMS.—

There are authorized to be appropriated tothe Secretary for carrying out research, de-velopment, demonstration, and technologydeployment activities under subsection (b)(1)through (3)—

(A) $100,000,000 for fiscal year 2003;(B) $110,000,000 for fiscal year 2004;(C) $120,000,000 for fiscal year 2005; and(D) $130,000,000 for fiscal year 2006.(2) SUPPORTING NUCLEAR ACTIVITIES.—There

are authorized to be appropriated to the Sec-retary for carrying out activities under sub-section (b)(4) through (6), as well as nuclearfacilities management and programdirection—

(A) $200,000,000 for fiscal year 2003;(B) $202,000,000 for fiscal year 2004;(C) $207,000,000 for fiscal year 2005; and(D) $212,000,000 for fiscal year 2006.

SEC. 1242. UNIVERSITY NUCLEAR SCIENCE ANDENGINEERING SUPPORT.

(a) ESTABLISHMENT.—The Secretary shallsupport a program to maintain the nation’shuman resource investment and infrastruc-ture in the nuclear sciences and engineeringand related fields (including health physicsand nuclear and radiochemistry), consistentwith departmental missions related to civil-ian nuclear research and development.

(b) DUTIES.—In carrying out the programunder this section, the Secretary shall—

(1) develop a graduate and undergraduatefellowship program to attract new and tal-ented students;

(2) assist universities in recruiting and re-taining new faculty in the nuclear sciencesand engineering through a Junior FacultyResearch Initiation Grant Program;

(3) support fundamental nuclear sciencesand engineering research through the Nu-clear Engineering Education Research Pro-gram;

(4) encourage collaborative nuclear re-search between industry, national labora-tories and universities through the NuclearEnergy Research Initiative; and

(5) support communication and outreachrelated to nuclear science and engineering.

(c) MAINTAINING UNIVERSITY RESEARCH ANDTRAINING REACTORS AND ASSOCIATED INFRA-

STRUCTURE.—Activities under this sectionmay include:

(1) Converting research reactors to low-en-richment fuels, upgrading operational in-strumentation, and sharing of reactorsamong universities.

(2) Providing technical assistance, in col-laboration with the U.S. nuclear industry, inre-licensing and upgrading training reactorsas part of a student training program.

(3) Providing funding for reactor improve-ments as part of a focused effort that empha-sizes research, training, and education.

(d) UNIVERSITY-NATIONAL LABORATORYINTERACTIONS.—The Secretary shalldevelop—

(1) a sabbatical fellowship program for uni-versity professors to spend extended periodsof time at National Laboratories in the areasof nuclear science and technology; and

(2) a visiting scientist program in whichNational Laboratory staff can spend time inacademic nuclear science and engineeringdepartments. The Secretary may provide forfellowships for students to spend time at Na-tional Laboratories in the area of nuclearscience with a member of the Laboratorystaff acting as a mentor.

(e) OPERATING AND MAINTENANCE COSTS.—Funding for a research project providedunder this section may be used to offset aportion of the operating and maintenancecosts of a university research reactor used inthe research project, on a cost-shared basiswith the university.

(f) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1241(c)(1), the following amounts are author-ized for activities under this section—


SEC. 1243. NUCLEAR ENERGY RESEARCH INITIA-TIVE.

(a) ESTABLISHMENT.—The Secretary shallsupport a Nuclear Energy Research Initia-tive for grants for research relating to nu-clear energy.

(b) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1241(c), there are authorized to be appro-priated to the Secretary for activities underthis section such sums as are necessary foreach fiscal year.SEC. 1244. NUCLEAR ENERGY PLANT OPTIMIZA-

TION PROGRAM.(a) ESTABLISHMENT.—The Secretary shall

support a Nuclear Energy Plant Optimiza-tion Program for grants to improve nuclearenergy plant reliability, availability, andproductivity. Notwithstanding section 1403,the program shall require industry cost-shar-ing of at least 50 percent and be subject toannual review by the Nuclear Energy Re-search Advisory Committee of the Depart-ment.

(b) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1241(c), there are authorized to be appro-priated to the Secretary for activities underthis section such sums as are necessary foreach fiscal year.SEC. 1245. NUCLEAR ENERGY TECHNOLOGY DE-

VELOPMENT PROGRAM.(a) ESTABLISHMENT.—The Secretary shall

support a Nuclear Energy Technology Devel-opment Program to develop a technologyroadmap to design and develop new nuclearenergy powerplants in the United States.

(b) GENERATION IV REACTOR STUDY.—TheSecretary shall, as part of the program undersubsection (a), also conduct a study of Gen-eration IV nuclear energy systems, includingdevelopment of a technology roadmap andperformance of research and developmentnecessary to make an informed technical de-cision regarding the most promising can-didates for commercial deployment. The

CONGRESSIONAL RECORD — SENATE S1489March 5, 2002study shall examine advanced proliferation-resistant and passively safe reactor designs,new reactor designs with higher efficiency,lower cost and improved safety, prolifera-tion-resistant and high burn-up fuels, mini-mization of generation of radioactive mate-rials, improved nuclear waste managementtechnologies, and improved instrumentationscience. Not later than December 31, 2002,the Secretary shall submit to Congress a re-port describing the results of the study.

(c) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized to be appropriatedunder section 1241(c), there are authorized tobe appropriated to the Secretary for activi-ties under this section such sums as are nec-essary for each fiscal year.

Subtitle E—Fundamental Energy ScienceSEC. 1251. ENHANCED PROGRAMS IN FUNDA-

MENTAL ENERGY SCIENCE.(a) PROGRAM DIRECTION.—The Secretary,

acting through the Office of Science, shall—(1) conduct a comprehensive program of

fundamental research, including research onchemical sciences, physics, materialssciences, biological and environmentalsciences, geosciences, engineering sciences,plasma sciences, mathematics, and advancedscientific computing;

(2) maintain, upgrade and expand the sci-entific user facilities maintained by the Of-fice of Science and ensure that they are anintegral part of the departmental mission forexploring the frontiers of fundamentalscience;

(3) maintain a leading-edge research capa-bility in the energy-related aspects ofnanoscience and nanotechnology, advancedscientific computing and genome research;and

(4) ensure that its fundamental scienceprograms, where appropriate, help informthe applied research and development pro-grams of the Department.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary for carrying out research, de-velopment, demonstration, and technologydeployment activities under this subtitle—

(1) $3,785,000,000 for fiscal year 2003;(2) $4,153,000,000 for fiscal year 2004;(3) $4,586,000,000 for fiscal year 2005; and(4) $5,000,000,000 for fiscal year 2006.

SEC. 1252. NANOSCALE SCIENCE AND ENGINEER-ING RESEARCH.

(a) ESTABLISHMENT.—The Secretary, actingthrough the Office of Science, shall support aprogram of research and development innanoscience and nanoengineering consistentwith the Department’s statutory authoritiesrelated to research and development. Theprogram shall include efforts to further theunderstanding of the chemistry, physics, ma-terials science and engineering of phe-nomena on the scale of 1 to 100 nanometers.

(b) DUTIES OF THE OFFICE OF SCIENCE.—Incarrying out the program under this section,the Office of Science shall—

(1) support both individual investigatorsand multidisciplinary teams of investiga-tors;

(2) pursuant to subsection (c), develop,plan, construct, acquire, or operate specialequipment or facilities for the use of inves-tigators conducting research and develop-ment in nanoscience and nanoengineering;

(3) support technology transfer activitiesto benefit industry and other users ofnanoscience and nanoengineering; and

(4) coordinate research and developmentactivities with industry and other federalagencies.

(c) NANOSCIENCE AND NANOENGINEERING RE-SEARCH CENTERS AND MAJOR INSTRUMENTA-TION.—

(1) AUTHORIZATION.—From amounts au-thorized to be appropriated under section

1251(b), the amounts specified under sub-section (d)(2) shall, subject to appropria-tions, be available for projects to develop,plan, construct, acquire, or operate specialequipment, instrumentation, or facilities forinvestigators conducting research and devel-opment in nanoscience and nanoengineering.

(2) PROJECTS.—Projects under paragraph(1) may include the measurement of prop-erties at the scale of 1 to 100 nanometers,manipulation at such scales, and the integra-tion of technologies based on nanoscience ornanoengineering into bulk materials orother technologies.

(3) FACILITIES.—Facilities under paragraph(1) may include electron microcharacteriza-tion facilities, microlithography facilities,scanning probe facilities and related instru-mentation science.

(4) COLLABORATION.—The Secretary shallencourage collaborations among univer-sities, laboratories and industry at facilitiesunder this subsection. At least one facilityunder this subsection shall have a specificmission of technology transfer to other insti-tutions and to industry.

(d) AUTHORIZATION OF APPROPRIATIONS.—(1) TOTAL AUTHORIZATION.—From amounts

authorized to be appropriated under section1251(b), the following amounts are authorizedfor activities under this section—

(A) $270,000,000 for fiscal year 2003;(B) $290,000,000 for fiscal year 2004;(C) $310,000,000 for fiscal year 2005; and(D) $330,000,000 for fiscal year 2006.(2) NANOSCIENCE AND NANOENGINEERING RE-

SEARCH CENTERS AND MAJOR INSTRUMENTA-TION.—Of the amounts under paragraph (1),the following amounts are authorized tocarry out subsection (c)—

(A) $135,000,000 for fiscal year 2003;(B) $150,000,000 for fiscal year 2004;(C) $120,000,000 for fiscal year 2005; and(D) $100,000,000 for fiscal year 2006.

SEC. 1253. ADVANCED SCIENTIFIC COMPUTINGFOR ENERGY MISSIONS.

(a) ESTABLISHMENT.—The Secretary, actingthrough the Office of Science, shall support aprogram to advance the Nation’s computingcapability across a diverse set of grand chal-lenge computationally based science prob-lems related to departmental missions.

(b) DUTIES OF THE OFFICE OF SCIENCE.—Incarrying out the program under this section,the Office of Science shall—

(1) advance basic science through computa-tion by developing software to solve grandchallenge science problems on new genera-tions of computing platforms,

(2) enhance the foundations for scientificcomputing by developing the basic mathe-matical and computing systems softwareneeded to take full advantage of the com-puting capabilities of computers with peakspeeds of 100 teraflops or more, some ofwhich may be unique to the scientific prob-lem of interest,

(3) enhance national collaboratory and net-working capabilities by developing softwareto integrate geographically separated re-searchers into effective research teams andto facilitate access to and movement andanalysis of large (petabyte) data sets, and

(4) maintain a robust scientific computinghardware infrastructure to ensure that thecomputing resources needed to address DOEmissions are available; explore new com-puting approaches and technologies thatpromise to advance scientific computing.

(c) HIGH-PERFORMANCE COMPUTING ACTPROGRAM.—Section 203(a) of the High-Per-formance Computing Act of 1991 (15 U.S.C.5523(a)) is amended—

(1) in paragraph (3), by striking ‘‘and’’;(2) in paragraph (4), by striking the period

and inserting ‘‘; and’’; and(3) by adding after paragraph (4) the fol-

lowing: ‘‘(5) conduct an integrated program

of research, development, and provision offacilities to develop and deploy to scientificand technical users the high-performancecomputing and collaboration tools needed tofulfill the statutory missions of the Depart-ment of Energy in conducting basic and ap-plied energy research.’’.

(d) COORDINATION WITH THE DOE NATIONALNUCLEAR SECURITY AGENCY ACCELERATEDSTRATEGIC COMPUTING INITIATIVE AND OTHERNATIONAL COMPUTING PROGRAMS.—The Sec-retary shall ensure that this program, to theextent feasible, is integrated and consistentwith—

(1) the Accelerated Strategic ComputingInitiative of the National Nuclear SecurityAgency; and

(2) other national efforts related to ad-vanced scientific computing for science andengineering.

(e) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1251(b), the following amounts are authorizedfor activities under this section—


SEC. 1254. FUSION ENERGY SCIENCES PROGRAMAND PLANNING.

(a) OVERALL PLAN FOR FUSION ENERGYSCIENCES PROGRAM.—

(1) IN GENERAL.—Not later than 6 monthsafter the date of enactment of this subtitle,the Secretary, after consultation with theFusion Energy Sciences Advisory Com-mittee, shall develop and transmit to theCongress a plan to ensure a strong scientificbase for the Fusion Energy Sciences Pro-gram within the Office of Science and to en-able the experiments described in sub-sections (b) and (c).

(2) OBJECTIVES OF PLAN.—The plan underthis subsection shall include as itsobjectives—

(A) to ensure that existing fusion researchfacilities and equipment are more fully uti-lized with appropriate measurements andcontrol tools;

(B) to ensure a strengthened fusion sciencetheory and computational base;

(C) to encourage and ensure that the selec-tion of and funding for new magnetic and in-ertial fusion research facilities is based onscientific innovation and cost effectiveness;

(D) to improve the communication of sci-entific results and methods between the fu-sion science community and the wider sci-entific community;

(E) to ensure that adequate support is pro-vided to optimize the design of the magneticfusion burning plasma experiments referredto in subsections (b) and (c); and

(F) to ensure that inertial confinement fu-sion facilities are utilized to the extent prac-ticable for the purpose of inertial fusion en-ergy research and development.

(b) PLAN FOR UNITED STATES FUSION EX-PERIMENT.—

(1) IN GENERAL.—The Secretary, after con-sultation with the Fusion Energy SciencesAdvisory Committee, shall develop a plan forconstruction in the United States of a mag-netic fusion burning plasma experiment forthe purpose of accelerating scientific under-standing of fusion plasmas. The Secretaryshall request a review of the plan by the Na-tional Academy of Sciences and shall trans-mit the plan and the review to the Congressby July 1, 2004.

(2) REQUIREMENTS OF PLAN.—The plan de-scribed in paragraph (1) shall—

(A) address key burning plasma physicsissues; and

(B) include specific information on the sci-entific capabilities of the proposed experi-ment, the relevance of these capabilities tothe goal of practical fusion energy, and the

CONGRESSIONAL RECORD — SENATES1490 March 5, 2002overall design of the experiment includingits estimated cost and potential constructionsites.

(c) PLAN FOR PARTICIPATION IN AN INTER-NATIONAL EXPERIMENT.—In addition to theplan described in subsection (b), the Sec-retary, after consultation with the FusionEnergy Sciences Advisory Committee, mayalso develop a plan for United States partici-pation in an international burning plasmaexperiment for the same purpose, whose con-struction is found by the Secretary to behighly likely and where United States par-ticipation is cost-effective relative to thecost and scientific benefits of a domestic ex-periment described in subsection (b). If theSecretary elects to develop a plan under thissubsection, he shall include the informationdescribed in subsection (b)(2), and an esti-mate of the cost of United States participa-tion in such an international experiment.The Secretary shall request a review by theNational Academy of Sciences of a plan de-veloped under this subsection, and shalltransmit the plan and the review to the Con-gress no later than July 1, 2004.

(d) AUTHORIZATION FOR RESEARCH AND DE-VELOPMENT.—The Secretary, through the Of-fice of Science, may conduct any researchand development necessary to fully developthe plans described in this section.

(e) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1251(b) for fiscal year 2003, $335,000,000 are au-thorized for fiscal year 2003 for activitiesunder this section and for activities of theFusion Energy Sciences Program.

Subtitle F—Energy, Safety, andEnvironmental Protection

SEC. 1261. CRITICAL ENERGY INFRASTRUCTUREPROTECTION RESEARCH AND DE-VELOPMENT.

(a) IN GENERAL.—The Secretary shall carryout a research, development, demonstrationand technology deployment program, inpartnership with industry, on critical energyinfrastructure protection, consistent withthe roles and missions outlined for the Sec-retary in Presidential Decision Directive 63,entitled ‘‘Critical Infrastructure Protec-tion’’. The program shall have the followinggoals:

(1) Increase the understanding of physicaland information system disruptions to theenergy infrastructure that could result incascading or widespread regional outages.

(2) Develop energy infrastructure assur-ance ‘‘best practices’’ through vulnerabilityand risk assessments.

(3) Protect against, mitigate the effect of,and improve the ability to recover from dis-ruptive incidents within the energy infra-structure.

(b) PROGRAM SCOPE.—The program undersubsection (a) shall include research, devel-opment, deployment, technology demonstra-tion for—

(1) analysis of energy infrastructure inter-dependencies to quantify the impacts of sys-tem vulnerabilities in relation to each other;

(2) probabilistic risk assessment of the en-ergy infrastructure to account for unconven-tional and terrorist threats;

(3) incident tracking and trend analysistools to assess the severity of threats and re-ported incidents to the energy infrastruc-ture; and

(4) integrated multi-sensor, warning andmitigation technologies to detect, integrate,and localize events affecting the energy in-frastructure including real time control topermit the reconfiguration of energy deliv-ery systems.

(c) REGIONAL COORDINATION.—The programunder this section shall cooperate with De-partmental activities to promote regionalcoordination under section 102 of this Act, to

ensure that the technologies and assess-ments developed by the program are trans-ferred in a timely manner to State and localauthorities, and to the energy industries.

(d) COORDINATION WITH INDUSTRY RESEARCHORGANIZATIONS.—The Secretary may enterinto grants, contracts, and cooperativeagreements with industry research organiza-tions to facilitate industry participation inresearch under this section and to fulfill ap-plicable cost-sharing requirements.

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to theSecretary to carry out this section—

(1) $25,000,000 for fiscal year 2003;(2) $26,000,000 for fiscal year 2004;(3) $27,000,000 for fiscal year 2005; and(4) $28,000,000 for fiscal year 2006.(f) CRITICAL ENERGY INFRASTRUCTURE FA-

CILITY DEFINED.—For purposes of this sec-tion, the term ‘‘critical energy infrastruc-ture facility’’ means a physical or cyber-based system or service for the generation,transmission or distribution of electrical en-ergy, or the production, refining, transpor-tation, or storage of petroleum, natural gas,or petroleum product, the incapacity or de-struction of which would have a debilitatingimpact on the defense or economic securityof the United States. The term shall not in-clude a facility that is licensed by the Nu-clear Regulatory Commission under section103 or 104b of the Atomic Energy Act of 1954(42 U.S.C. 2133 and 2134(b)).SEC. 1262. PIPELINE INTEGRITY, SAFETY, AND

RELIABILITY RESEARCH AND DE-VELOPMENT.

(a) IN GENERAL.—The Secretary of Trans-portation, in coordination with the Sec-retary of Energy, shall develop and imple-ment an accelerated cooperative program ofresearch and development to ensure the in-tegrity of natural gas and hazardous liquidpipelines. This research and developmentprogram shall include materials inspectiontechniques, risk assessment methodology,and information systems surety.

(b) PURPOSE.—The purpose of the coopera-tive research program shall be to promoteresearch and development to—

(1) ensure long-term safety, reliability andservice life for existing pipelines;

(2) expand capabilities of internal inspec-tion devices to identify and accurately meas-ure defects and anomalies;

(3) develop inspection techniques for pipe-lines that cannot accommodate the internalinspection devices available on the date ofenactment;

(4) develop innovative techniques to meas-ure the structural integrity of pipelines toprevent pipeline failures;

(5) develop improved materials and coat-ings for use in pipelines;

(6) improve the capability, reliability, andpracticality of external leak detection de-vices;

(7) identify underground environmentsthat might lead to shortened service life;

(8) enhance safety in pipeline siting andland use;

(9) minimize the environmental impact ofpipelines;

(10) demonstrate technologies that im-prove pipeline safety, reliability, and integ-rity;

(11) provide risk assessment tools for opti-mizing risk mitigation strategies; and

(12) provide highly secure information sys-tems for controlling the operation of pipe-lines.

(c) AREAS.—In carrying out this section,the Secretary of Transportation, in coordi-nation with the Secretary of Energy, shallconsider research and development on nat-ural gas, crude oil, and petroleum productpipelines for—

(1) early crack, defect, and damage detec-tion, including real-time damage moni-toring;

(2) automated internal pipeline inspectionsensor systems;

(3) land use guidance and set back manage-ment along pipeline rights-of-way for com-munities;

(4) internal corrosion control;(5) corrosion-resistant coatings;(6) improved cathodic protection;(7) inspection techniques where internal in-

spection is not feasible, including measure-ment of structural integrity;

(8) external leak detection, including port-able real-time video imaging technology, andthe advancement of computerized controlcenter leak detection systems utilizing real-time remote field data input;

(9) longer life, high strength, non-corrosivepipeline materials;

(10) assessing the remaining strength of ex-isting pipes;

(11) risk and reliability analysis models, tobe used to identify safety improvements thatcould be realized in the near term resultingfrom analysis of data obtained from a pipe-line performance tracking initiative;

(12) identification, monitoring, and preven-tion of outside force damage, including sat-ellite surveillance; and

(13) any other areas necessary to ensuringthe public safety and protecting the environ-ment.

(d) RESEARCH AND DEVELOPMENT PROGRAMPLAN.—Within 240 days after the date of en-actment of this section, the Secretary ofTransportation, in coordination with theSecretary of Energy and the Pipeline Integ-rity Technical Advisory Committee, shallprepare and submit to the Congress a five-year program plan to guide activities underthis section. In preparing the program plan,the Secretary shall consult with appropriaterepresentatives of the natural gas, crude oil,and petroleum product pipeline industries toselect and prioritize appropriate project pro-posals. The Secretary may also seek the ad-vice of utilities, manufacturers, institutionsof higher learning, Federal agencies, thepipeline research institutions, national lab-oratories, State pipeline safety officials, en-vironmental organizations, pipeline safetyadvocates, and professional and technical so-cieties.

(e) IMPLEMENTATION.—The Secretary ofTransportation shall have primary responsi-bility for ensuring the five-year plan pro-vided for in subsection (d) is implemented asintended by this section. In carrying out theresearch, development, and demonstrationactivities under this section, the Secretaryof Transportation and the Secretary of En-ergy may use, to the extent authorized underapplicable provisions of law, contracts, coop-erative agreements, cooperative researchand development agreements under the Ste-venson-Wydler Technology Innovation Act of1980 (15 U.S.C. 3701 et seq.), grants, joint ven-tures, other transactions, and any otherform of agreement available to the Secretaryconsistent with the recommendations of theAdvisory Committee.

(f) REPORTS TO CONGRESS.—The Secretaryof Transportation shall report to the Con-gress annually as to the status and results todate of the implementation of the researchand development program plan. The reportshall include the activities of the Depart-ments of Transportation and Energy, thenatural laboratories, universities, and anyother research organizations, including in-dustry research organizations.

(g) PIPELINE INTEGRITY TECHNICAL ADVI-SORY COMMITTEE.—

(1) ESTABLISHMENT.—The Secretary ofTransportation shall enter into appropriatearrangements with the National Academy of

CONGRESSIONAL RECORD — SENATE S1491March 5, 2002Sciences to establish and manage the Pipe-line Integrity Technical Advisory Com-mittee for the purpose of advising the Sec-retary of Transportation and the Secretaryof Energy on the development and imple-mentation of the research and developmentprogram plan under subsection (d). The Advi-sory Committee shall have an ongoing rolein evaluating the progress and results of theresearch, development, and demonstrationcarried out under this section.

(2) MEMBERSHIP.—The National Academyof Sciences shall appoint the members of thePipeline Integrity Technical Advisory Com-mittee after consultation with the Secretaryof Transportation and the Secretary of En-ergy. Members appointed to the AdvisoryCommittee should have the necessary quali-fications to provide technical contributionsto the purposes of the Advisory Committee.

(h) AUTHORIZATION OF APPROPRIATIONS.—(1)There are authorized to be appropriated tothe Secretary of Transportation for carryingout this section $3,000,000, to be derived fromuser fees under section 60301 of title 49,United States Code, for each of the fiscalyears 2003 through 2006.

(2) Of the amounts available in the OilSpill Liability Trust Fund established bysection 9509 of the Internal Revenue Code of1986 (26 U.S.C. 9509), $3,000,000 shall be trans-ferred to the Secretary of Transportation, asprovided in appropriation Acts, to carry outprograms for detection, prevention and miti-gation of oil spills under this section foreach of the fiscal years 2003 through 2006.

(3) There are authorized to be appropriatedto the Secretary of Energy for carrying outthis section such sums as may be necessaryfor each of the fiscal years 2003 through 2006.SEC. 1263. RESEARCH AND DEMONSTRATION FOR

REMEDIATION OF GROUNDWATERFROM ENERGY ACTIVITIES.

(a) IN GENERAL.—The Secretary shall carryout a research, development, demonstration,and technology deployment program to im-prove methods for environmental restorationof groundwater contaminated by energy ac-tivities, including oil and gas production,surface and underground mining of coal, andin-situ extraction of energy resources.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary to carry out this section$10,000,000 for each of fiscal years 2003through 2006.

TITLE XIII—CLIMATE CHANGE-RELATEDRESEARCH AND DEVELOPMENT

Subtitle A—Department of Energy ProgramsSEC. 1301. PROGRAM GOALS.

The goals of the research, development,demonstration, and technology deploymentprograms under this subtitle shall be to—

(1) provide a sound scientific under-standing of the human and natural forcesthat influence the Earth’s climate system,particularly those forces related to energyproduction and use;

(2) help mitigate climate change fromhuman activities related to energy produc-tion and use; and

(3) reduce, avoid, or sequester emissions ofgreenhouse gases in furtherance of the goalsof the United National Framework Conven-tion on Climate Change, done at New Yorkon May 9, 1992, in a manner that does not re-sult in serious harm to the U.S. economy.SEC. 1302. DEPARTMENT OF ENERGY GLOBAL

CHANGE SCIENCE RESEARCH.(a) PROGRAM DIRECTION.—The Secretary,

acting through the Office of Science, shallconduct a comprehensive research programto understand and address the effects of en-ergy production and use on the global cli-mate system.

(b) PROGRAM ELEMENTS.—(1) CLIMATE MODELING.—The Secretary

shall—

(A) conduct observational and analyticalresearch to acquire and interpret the dataneeded to describe the radiation balancefrom the surface of the Earth to the top ofthe atmosphere;

(B) determine the factors responsible forthe Earth’s radiation balance and incor-porate improved understanding of such fac-tors in climate models;

(C) improve the treatment of aerosols andclouds in climate models;

(D) reduce the uncertainty in decade-to-century model-based projections of climatechange; and

(E) increase the availability and utility ofclimate change simulations to researchersand policy makers interested in assessingthe relationship between energy and climatechange.

(2) CARBON CYCLE.—The Secretary shall—(A) carry out field research and modeling

activities—(i) to understand and document the net ex-

change of carbon dioxide between major ter-restrial ecosystems and the atmosphere; or

(ii) to evaluate the potential of proposedmethods of carbon sequestration;

(B) develop and test carbon cycle models;and

(C) acquire data and develop and test mod-els to simulate and predict the transport,transformation, and fate of energy-relatedemissions in the atmosphere.

(3) ECOLOGICAL PROCESSES.—The Secretaryshall carry out long-term experiments of theresponse of intact terrestrial ecosystemsto—

(A) alterations in climate and atmosphericcomposition; or

(B) land-use changes that affect ecosystemextent and function.

(4) INTEGRATED ASSESSMENT.—The Sec-retary shall develop and improve methodsand tools for integrated analyses of the cli-mate change system from emissions ofaerosols and greenhouse gases to the con-sequences of these emissions on climate andthe resulting effects of human-induced cli-mate change on economic and social sys-tems, with emphasis on critical gaps in inte-grated assessment modeling, including mod-eling of technology innovation and diffusionand the development of metrics of economiccosts of climate change and policies for miti-gating or adapting to climate change.

(c) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1440(c), there are authorized to be appro-priated to the Secretary for carrying out ac-tivities under this section—

(1) $150,000,000 for fiscal year 2003;(2) $175,000,000 for fiscal year 2004;(3) $200,000,000 for fiscal year 2005; and(4) $230,000,000 for fiscal year 2006.(d) LIMITATION ON FUNDS.—Funds author-

ized to be appropriated under this sectionshall not be used for the development, dem-onstration, or deployment of technology toreduce, avoid, or sequester greenhouse gasemissions.SEC. 1303. AMENDMENTS TO THE FEDERAL NON-

NUCLEAR RESEARCH AND DEVELOP-MENT ACT OF 1974.

Section 6 of the Federal Nonnuclear En-ergy Research and Development Act of 1974(42 U.S.C. 5905) is amended—

(1) in subsection (a)—(A) in paragraph (2), by striking ‘‘and’’ at

the end;(B) in paragraph (3) by striking the period

at the end and inserting ‘‘, and’’; and(C) by adding at the end the following:‘‘(4) solutions to the effective management

of greenhouse gas emissions in the long termby the development of technologies and prac-tices designed to—

‘‘(A) reduce or avoid anthropogenic emis-sions of greenhouse gases;

‘‘(B) remove and sequester greenhousegases from emissions streams; and

‘‘(C) remove and sequester greenhousegases from the atmosphere.’’; and

(2) in subsection (b)—(A) in paragraph (2), by striking ‘‘sub-

section (a)(1) through (3)’’ and inserting‘‘paragraphs (1) through (4) of subsection(a)’’; and

(B) in paragraph (3)—(i) in subparagraph (R), by striking ‘‘and’’

at the end;(ii) in subparagraph (S), by striking the pe-

riod at the end and inserting ‘‘; and’’; and(iii) by adding at the end the following:‘‘(T) to pursue a long-term climate tech-

nology strategy designed to demonstrate avariety of technologies by which stabiliza-tion of greenhouse gases might be bestachieved, including accelerated research, de-velopment, demonstration and deploymentof—

‘‘(i) renewable energy systems;‘‘(ii) advanced fossil energy technology;‘‘(iii) advanced nuclear power plant design;‘‘(iv) fuel cell technology for residential,

industrial and transportation applications;‘‘(v) carbon sequestration practices and

technologies, including agricultural and for-estry practices that store and sequester car-bon;

‘‘(vi) efficient electrical generation, trans-mission and distribution technologies; and

‘‘(vii) efficient end use energy tech-nologies.’’.

Subtitle B—Department of AgriculturePrograms

SEC. 1311. CARBON SEQUESTRATION BASIC ANDAPPLIED RESEARCH.

(a) BASIC RESEARCH.—(1) IN GENERAL.—The Secretary of Agri-

culture shall carry out research in the areasof soil science that promote understandingof—

(A) the net sequestration of organic carbonin soil; and

(B) net emissions of other greenhouse gasesfrom agriculture.

(2) AGRICULTURAL RESEARCH SERVICE.—TheSecretary of Agriculture, acting through theAgricultural Research Service, shall collabo-rate with other Federal agencies in devel-oping data and carrying out research ad-dressing soil carbon fluxes (losses and gains)and net emissions of methane and nitrousoxide from cultivation and animal manage-ment activities.

(3) COOPERATIVE STATE RESEARCH, EXTEN-SION, AND EDUCATION SERVICE.—

(A) IN GENERAL.—The Secretary of Agri-culture, acting through the CooperativeState Research, Extension, and EducationService, shall establish a competitive grantprogram to carry out research on the mat-ters described in paragraph (1) in land grantuniversities and other research institutions.

(B) CONSULTATION ON RESEARCH TOPICS.—Before issuing a request for proposals forbasic research under paragraph (1), the Coop-erative State Research, Extension, and Edu-cation Service shall consult with the Agri-cultural Research Service to ensure that pro-posed research areas are complementarywith and do not duplicate research projectsunderway at the Agricultural Research Serv-ice or other Federal agencies.

(b) APPLIED RESEARCH.—(1) IN GENERAL.—The Secretary of Agri-

culture shall carry out applied research inthe areas of soil science, agronomy, agricul-tural economics and other agriculturalsciences to—

(A) promote understanding of—(i) how agricultural and forestry practices

affect the sequestration of organic and inor-ganic carbon in soil and net emissions ofother greenhouse gases;

CONGRESSIONAL RECORD — SENATES1492 March 5, 2002(ii) how changes in soil carbon pools are

cost-effectively measured, monitored, andverified; and

(iii) how public programs and private mar-ket approaches can be devised to incorporatecarbon sequestration in a broader societalgreenhouse gas emission reduction effort;

(B) develop methods for establishing base-lines for measuring the quantities of carbonand other greenhouse gases sequestered; and

(C) evaluate leakage and performanceissues.

(2) REQUIREMENTS.—To the maximum ex-tent practicable, applied research underparagraph (1) shall—

(A) draw on existing technologies andmethods; and

(B) strive to provide methodologies thatare accessible to a nontechnical audience.

(3) MINIMIZATION OF ADVERSE ENVIRON-MENTAL IMPACTS.—All applied research underparagraph (1) shall be conducted with an em-phasis on minimizing adverse environmentalimpacts.

(4) NATURAL RESOURCES CONSERVATIONSERVICE.—The Secretary of Agriculture, act-ing through the Natural Resources Conserva-tion Service, shall collaborate with otherFederal agencies, including the National In-stitute of Standards and Technology, in de-veloping new measuring techniques andequipment or adapting existing techniquesand equipment to enable cost-effective andaccurate monitoring and verification, for awide range of agricultural and forestry prac-tices, of—

(A) changes in soil carbon content in agri-cultural soils, plants, and trees; and

(B) net emissions of other greenhousegases.

(5) COOPERATIVE STATE RESEARCH, EXTEN-SION, AND EDUCATION SERVICE.—

(A) IN GENERAL.—The Secretary of Agri-culture, acting through the CooperativeState Research, Extension, and EducationService, shall establish a competitive grantprogram to encourage research on the mat-ters described in paragraph (1) by land grantuniversities and other research institutions.

(B) CONSULTATION ON RESEARCH TOPICS.—Before issuing a request for proposals for ap-plied research under paragraph (1), the Coop-erative State Research, Extension, and Edu-cation Service shall consult with the Na-tional Resources Conservation Service andthe Agricultural Research Service to ensurethat proposed research areas are complemen-tary with and do not duplicate researchprojects underway at the Agricultural Re-search Service or other Federal agencies.

(c) RESEARCH CONSORTIA.—(1) IN GENERAL.—The Secretary of Agri-

culture may designate not more than 2 re-search consortia to carry out researchprojects under this section, with the require-ment that the consortia propose to conductbasic research under subsection (a) and ap-plied research under subsection (b).

(2) SELECTION.—The consortia shall be se-lected in a competitive manner by the Coop-erative State Research, Extension, and Edu-cation Service.

(3) ELIGIBLE CONSORTIUM PARTICIPANTS.—Entities eligible to participate in a consor-tium include—

(A) land grant colleges and universities;(B) private research institutions;(C) State geological surveys;(D) agencies of the Department of Agri-

culture;(E) research centers of the National Aero-

nautics and Space Administration and theDepartment of Energy;

(F) other Federal agencies;(G) representatives of agricultural busi-

nesses and organizations with demonstratedexpertise in these areas; and

(H) representatives of the private sectorwith demonstrated expertise in these areas.

(4) RESERVATION OF FUNDING.—If the Sec-retary of Agriculture designates 1 or 2 con-sortia, the Secretary of Agriculture shall re-serve for research projects carried out by theconsortium or consortia not more than 25percent of the amounts made available tocarry out this section for a fiscal year.

(d) STANDARDS OF PRECISION.—(1) CONFERENCE.—Not later than 3 years

after the date of enactment of this subtitle,the Secretary of Agriculture, acting throughthe Agricultural Research Service and inconsultation with the Natural ResourcesConservation Service, shall convene a con-ference of key scientific experts on carbonsequestration and measurement techniquesfrom various sectors (including the govern-ment, academic, and private sectors) to—

(A) discuss benchmark standards of preci-sion for measuring soil carbon content andnet emissions of other greenhouse gases;

(B) designate packages of measurementtechniques and modeling approaches toachieve a level of precision agreed on by theparticipants in the conference; and

(C) evaluate results of analyses on base-line, permanence, and leakage issues.

(2) DEVELOPMENT OF BENCHMARK STAND-ARDS.—

(A) IN GENERAL.—The Secretary shall de-velop benchmark standards for measuringthe carbon content of soils and plants (in-cluding trees) based on—

(i) information from the conference underparagraph (1);

(ii) research conducted under this section;and

(iii) other information available to theSecretary.

(B) OPPORTUNITY FOR PUBLIC COMMENT.—The Secretary shall provide an opportunityfor the public to comment on benchmarkstandards developed under subparagraph (A).

(3) REPORT.—Not later than 180 days afterthe conclusion of the conference under para-graph (1), the Secretary of Agriculture shallsubmit to the Committee on Agriculture ofthe House of Representatives and the Com-mittee on Agriculture, Nutrition, and For-estry of the Senate a report on the results ofthe conference.

(e) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be

appropriated to carry out this section$25,000,000 for each of fiscal years 2003through 2006.

(2) ALLOCATION.—Of the amounts madeavailable to carry out this section for a fis-cal year, at least 50 percent shall be allo-cated for competitive grants by the Coopera-tive State Research, Extension, and Edu-cation Service.SEC. 1312. CARBON SEQUESTRATION DEM-

ONSTRATION PROJECTS AND OUT-REACH.

(a) DEMONSTRATION PROJECTS.—(1) DEVELOPMENT OF MONITORING PRO-

GRAMS.—(A) IN GENERAL.—The Secretary of Agri-

culture, acting through the Natural Re-sources Conservation Service and in coopera-tion with local extension agents, expertsfrom land grant universities, and other localagricultural or conservation organizations,shall develop user-friendly, programs thatcombine measurement tools and modelingtechniques into integrated packages to mon-itor the carbon sequestering benefits of con-servation practices and net changes in green-house gas emissions.

(B) BENCHMARK LEVELS OF PRECISION.—Theprograms developed under subparagraph (A)shall strive to achieve benchmark levels ofprecision in measurement in a cost-effectivemanner.

(2) PROJECTS.—

(A) IN GENERAL.—The Secretary of Agri-culture, acting through the Farm ServiceAgency, shall establish a program underwhich projects use the monitoring programsdeveloped under paragraph (1) to dem-onstrate the feasibility of methods of meas-uring, verifying, and monitoring—

(i) changes in organic carbon content andother carbon pools in agricultural soils,plants, and trees; and

(ii) net changes in emissions of othergreenhouse gases.

(B) EVALUATION OF IMPLICATIONS.—Theprojects under subparagraph (A) shall in-clude evaluation of the implications for reas-sessed baselines, carbon or other greenhousegas leakage, and permanence of sequestra-tion.

(C) SUBMISSION OF PROPOSALS.—Proposalsfor projects under subparagraph (A) shall besubmitted by the appropriate agency of eachState, in cooperation with interested localjurisdictions and State agricultural and con-servation organizations.

(D) LIMITATION.—Not more than 10 projectsunder subparagraph (A) may be approved inconjunction with applied research projectsunder section 1331(b) until benchmark meas-urement and assessment standards are estab-lished under section 1331(d).

(b) OUTREACH.—(1) IN GENERAL.—The Cooperative State Re-

search, Extension, and Education Serviceshall widely disseminate information aboutthe economic and environmental benefitsthat can be generated by adoption of con-servation practices (including benefits fromincreased sequestration of carbon and re-duced emission of other greenhouse gases).

(2) PROJECT RESULTS.—The CooperativeState Research, Extension, and EducationService shall inform farmers, ranchers, andState agricultural and energy offices in eachState of—

(A) the results of demonstration projectsunder subsection (a)(2) in the State; and

(B) the ways in which the methods dem-onstrated in the projects might be applicableto the operations of those farmers and ranch-ers.

(3) POLICY OUTREACH.—On a periodic basis,the Cooperative State Research, Extension,and Education Service shall disseminate in-formation on the policy nexus between glob-al climate change mitigation strategies andagriculture, so that farmers and ranchersmay better understand the global implica-tions of the activities of farmers and ranch-ers.

(c) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be

appropriated to carry out this section$10,000,000 for each of fiscal years 2003through 2006.

(2) ALLOCATION.—Of the amounts madeavailable to carry out this section for a fis-cal year, at least 50 percent shall be allo-cated for demonstration projects under sub-section (a)(2).

Subtitle C—Clean Energy TechnologyExports Program

SEC. 1321. CLEAN ENERGY TECHNOLOGY EX-PORTS PROGRAM.

(a) DEFINITIONS.—In this section:(1) CLEAN ENERGY TECHNOLOGY.—The term

‘‘clean energy technology’’ means an energysupply or end-use technology that, over itslifecycle and compared to a similar tech-nology already in commercial use in devel-oping countries, countries in transition, andother partner countries—

(A) emits substantially lower levels of pol-lutants or greenhouse gases; and

(B) may generate substantially smaller orless toxic volumes of solid or liquid waste.

(2) INTERAGENCY WORKING GROUP.—Theterm ‘‘interagency working group’’ means

CONGRESSIONAL RECORD — SENATE S1493March 5, 2002the Interagency Working Group on Clean En-ergy Technology Exports established undersubsection (b).

(b) INTERAGENCY WORKING GROUP.—(1) ESTABLISHMENT.—Not later than 90 days

after the date of enactment of this section,the Secretary of Energy, the Secretary ofCommerce, and the Administrator of theU.S. Agency for International Developmentshall jointly establish a Interagency Work-ing Group on Clean Energy Technology Ex-ports. The interagency working group willfocus on opening and expanding energy mar-kets and transferring clean energy tech-nology to the developing countries, countriesin transition, and other partner countriesthat are expected to experience, over thenext 20 years, the most significant growth inenergy production and associated greenhousegas emissions, including through technologytransfer programs under the FrameworkConvention on Climate Change, other inter-national agreements, and relevant Federalefforts.

(2) MEMBERSHIP.—The interagency workinggroup shall be jointly chaired by representa-tives appointed by the agency heads underparagraph (1) and shall also include rep-resentatives from the Department of State,the Department of Treasury, the Environ-mental Protection Agency, the Export-Im-port Bank, the Overseas Private InvestmentCorporation, the Trade and DevelopmentAgency, and other federal agencies asdeemed appropriate by all three agencyheads under paragraph (1).

(3) DUTIES.—The interagency workinggroup shall—

(A) analyze technology, policy, and marketopportunities for international development,demonstration, and deployment of clean en-ergy technology;

(B) investigate issues associated withbuilding capacity to deploy clean energytechnology in developing countries, coun-tries in transition, and other partner coun-tries, including—

(i) energy-sector reform;(ii) creation of open, transparent, and com-

petitive markets for energy technologies;(iii) availability of trained personnel to de-

ploy and maintain the technology; and(iv) demonstration and cost-buydown

mechanisms to promote first adoption of thetechnology;

(C) examine relevant trade, tax, inter-national, and other policy issues to assesswhat policies would help open markets andimprove U.S. clean energy technology ex-ports in support of the following areas—

(i) enhancing energy innovation and co-operation, including energy sector and mar-ket reform, capacity building, and financingmeasures;

(ii) improving energy end-use efficiencytechnologies, including buildings and facili-ties, vehicle, industrial, and co-generationtechnology initiatives; and

(iii) promoting energy supply technologies,including fossil, nuclear, and renewable tech-nology initiatives.

(D) establish an advisory committee in-volving the private sector and other inter-ested groups on the export and deploymentof clean energy technology;

(E) monitor each agency’s progress to-wards meeting goals in the 5-year strategicplan submitted to Congress pursuant to theEnergy and Water Development Appropria-tions Act, 2001, and the Energy and WaterDevelopment Appropriations Act, 2002;

(F) make recommendations to heads of ap-propriate Federal agencies on ways tostreamline federal programs and policies toimprove each agency’s role in the inter-national development, demonstration, anddeployment of clean energy technology;

(G) make assessments and recommenda-tions regarding the distinct technological,market, regional, and stakeholder challengesnecessary to carry out the program; and

(H) recommend conditions and criteriathat will help ensure that United Statesfunds promote sound energy policies in par-ticipating countries while simultaneouslyopening their markets and exporting UnitedStates energy technology.

(c) FEDERAL SUPPORT FOR CLEAN ENERGYTECHNOLOGY TRANSFER.—Notwithstandingany other provision of law, each federalagency or government corporation carryingout an assistance program in support of theactivities of United States persons in the en-vironment or energy sector of a developingcountry, country in transition, or other part-ner country shall support, to the maximumextent practicable, the transfer of UnitedStates clean energy technology as part ofthat program.

(d) ANNUAL REPORT.—Not later than April1, 2002, and each year thereafter, the Inter-agency Working Group shall submit a reportto Congress on its activities during the pre-ceding calendar year. The report shall in-clude a description of the technology, policy,and market opportunities for internationaldevelopment, demonstration, and deploy-ment of clean energy technology inves-tigated by the Interagency Working Group inthat year, as well as any policy recommenda-tions to improve the expansion of clean en-ergy markets and U.S. clean energy tech-nology exports.

(e) REPORT ON USE OF FUNDS.—Not laterthan October 1, 2002, and each year there-after, the Secretary of State, in consultationwith other federal agencies, shall submit areport to Congress indicating how UnitedStates funds appropriated for clean energytechnology exports and other relevant fed-eral programs are being directed in a mannerthat promotes sound energy policy commit-ments in developing countries, countries intransition, and other partner countries, in-cluding efforts pursuant to multi-lateral en-vironmental agreements.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe departments, agencies, and entities ofthe United States described in subsection (b)such sums as may be necessary to supportthe transfer of clean energy technology, con-sistent with the subsidy codes of the WorldTrade Organization, as part of assistanceprograms carried out by those departments,agencies, and entities in support of activitiesof United States persons in the energy sectorof a developing country, country in transi-tion, or other partner country.SEC. 1322. INTERNATIONAL ENERGY TECH-

NOLOGY DEPLOYMENT PROGRAM.(a) IN GENERAL.—Section 1608 of the En-

ergy Policy Act of 1992 (42 U.S.C. 13387) isamended by striking subsection (l) and in-serting the following:

‘‘(l) INTERNATIONAL ENERGY TECHNOLOGYDEPLOYMENT PROGRAM.—

‘‘(1) DEFINITIONS.—In this subsection:‘‘(A) INTERNATIONAL ENERGY DEPLOYMENT

PROJECT.—The term ‘international energydeployment project’ means a project to con-struct an energy production facility outsidethe United States—

‘‘(i) the output of which will be consumedoutside the United States; and

‘‘(ii) the deployment of which will result ina greenhouse gas reduction per unit of en-ergy produced when compared to the tech-nology that would otherwise beimplemented—

‘‘(I) 10 percentage points or more, in thecase of a unit placed in service before Janu-ary 1, 2010;

‘‘(II) 20 percentage points or more, in thecase of a unit placed in service after Decem-ber 31, 2009, and before January 1, 2020; or

‘‘(III) 30 percentage points or more, in thecase of a unit placed in service after Decem-ber 31, 2019, and before January 1, 2030.

‘‘(B) QUALIFYING INTERNATIONAL ENERGY

DEPLOYMENT PROJECT.—The term ‘qualifyinginternational energy deployment project’means an international energy deploymentproject that—

‘‘(i) is submitted by a United States firmto the Secretary in accordance with proce-dures established by the Secretary by regula-tion;

‘‘(ii) uses technology that has been suc-cessfully developed or deployed in the UnitedStates;

‘‘(iii) meets the criteria of subsection (k);‘‘(iv) is approved by the Secretary, with

notice of the approval being published in theFederal Register; and

‘‘(v) complies with such terms and condi-tions as the Secretary establishes by regula-tion.

‘‘(C) UNITED STATES.—For purposes of thisparagraph, the term ‘United States’, whenused in a geographical sense, means the 50States, the District of Columbia, PuertoRico, Guam, the Virgin Islands, AmericanSamoa, and the Commonwealth of the North-ern Mariana Islands.

‘‘(2) PILOT PROGRAM FOR FINANCIAL ASSIST-ANCE.—

‘‘(A) IN GENERAL.—Not later than 180 daysafter the date of enactment of this sub-section, the Secretary shall, by regulation,provide for a pilot program for financial as-sistance for qualifying international energydeployment projects.

‘‘(B) SELECTION CRITERIA.—After consulta-tion with the Secretary of State, the Sec-retary of Commerce, and the United StatesTrade Representative, the Secretary shall se-lect projects for participation in the pro-gram based solely on the criteria under thistitle and without regard to the country inwhich the project is located.

‘‘(C) FINANCIAL ASSISTANCE.—‘‘(i) IN GENERAL.—A United States firm

that undertakes a qualifying internationalenergy deployment project that is selectedto participate in the pilot program shall beeligible to receive a loan or a loan guaranteefrom the Secretary.

‘‘(ii) RATE OF INTEREST.—The rate of inter-est of any loan made under clause (i) shall beequal to the rate for Treasury obligationsthen issued for periods of comparable matu-rities.

‘‘(iii) AMOUNT.—The amount of a loan orloan guarantee under clause (i) shall not ex-ceed 50 percent of the total cost of the quali-fied international energy deploymentproject.

‘‘(iv) DEVELOPED COUNTRIES.—Loans orloan guarantees made for projects to be lo-cated in a developed country, as listed inAnnex I of the United Nations FrameworkConvention on Climate Change, shall requireat least a 50 percent contribution towardsthe total cost of the loan or loan guaranteeby the host country.

‘‘(v) DEVELOPING COUNTRIES.—Loans orloan guarantees made for projects to be lo-cated in a developing country (those coun-tries not listed in Annex I of the United Na-tions Framework Convention on ClimateChange) shall require at least a 10 percentcontribution towards the total cost of theloan or loan guarantee by the host country.

‘‘(vi) CAPACITY BUILDING RESEARCH.—Pro-posals made for projects to be located in adeveloping country may include a researchcomponent intended to build technologicalcapacity within the host country. Such re-search must be related to the technologies

CONGRESSIONAL RECORD — SENATES1494 March 5, 2002being deployed and must involve both an in-stitution in the host country and an indus-try, university or national laboratory partic-ipant from the United States. The host insti-tution shall contribute at least 50 percent offunds provided for the capacity building re-search.

‘‘(D) COORDINATION WITH OTHER PRO-GRAMS.—A qualifying international energydeployment project funded under this sec-tion shall not be eligible as a qualifyingclean coal technology under section 415 ofthe Clean Air Act (42 U.S.C. 7651n).

‘‘(E) REPORT.—Not later than 5 years afterthe date of enactment of this subsection, theSecretary shall submit to the President a re-port on the results of the pilot projects.

‘‘(F) RECOMMENDATION.—Not later than 60days after receiving the report under sub-paragraph (E), the President shall submit toCongress a recommendation, based on the re-sults of the pilot projects as reported by theSecretary of Energy, concerning whether thefinancial assistance program under this sec-tion should be continued, expanded, reduced,or eliminated.

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary to carry out this section$100,000,000 for each of fiscal years 2003through 2011, to remain available until ex-pended.’’.

Subtitle D—Climate Change Science andInformation

PART I—AMENDMENTS TO THE GLOBALCHANGE RESEARCH ACT OF 1990

SEC. 1331. AMENDMENT OF GLOBAL CHANGE RE-SEARCH ACT OF 1990.

Except as otherwise expressly provided,whenever in this subtitle an amendment orrepeal is expressed in terms of an amend-ment to, or repeal of, a section or other pro-vision, the reference shall be considered tobe made to a section or other provision ofthe Global Change Research Act of 1990 (15U.S.C. 2921 et seq.).SEC. 1332. CHANGES IN DEFINITIONS.

Paragraph (1) of section 2 (15 U.S.C. 2921) isamended by striking ‘‘Earth and’’ and insert-ing ‘‘Climate and’’.SEC. 1333. CHANGE IN COMMITTEE NAME.

Section 102 (15 U.S.C. 2932) is amended—(1) by striking ‘‘EARTH AND’’ in the sec-

tion heading and inserting ‘‘CLIMATEAND’’; and

(2) by striking ‘‘Earth and’’ in subsection(a) and inserting ‘‘Climate and’’.SEC. 1334. CHANGE IN NATIONAL GLOBAL

CHANGE RESEARCH PLAN.Section 104 (15 U.S.C. 2934) is amended—(1) by adding at the end of subsection (c)

the following:‘‘(6) Methods for integrating information

to provide predictive tools for planning anddecision making by governments, commu-nities and the private sector.’’;

(2) by inserting ‘‘local, State, and Federal’’before ‘‘policy makers’’ in subsection (d)(3);

(3) by striking ‘‘and’’ in subsection (d)(2);(4) by striking ‘‘change.’’ in subsection

(d)(3) and inserting ‘‘change; and’’;(5) by adding at the end of subsection (d)

the following:‘‘(4) establish a common assessment and

modeling framework that may be used inboth research and operations to predict andassess the vulnerability of natural and man-aged ecosystems and of human society in thecontext of other environmental and socialchanges.’’; and

(6) by adding at the end the following:‘‘(g) STRATEGIC PLAN; REVISED IMPLEMEN-

TATION PLAN.—The Chairman of the Council,through the Committee, shall develop a stra-tegic plan for the United States Global Cli-mate Change Research Program for the 10-

year period beginning in 2002 and submit theplan to the Congress within 180 days afterthe date of enactment of the Global ClimateChange Act of 2002. The Chairman, throughthe Committee, shall also submit a revisedimplementation plan under subsection (a).’’.SEC. 1335. INTEGRATED PROGRAM OFFICE.

Section 105 (15 U.S.C. 2935) is amended—(1) by redesignating subsections (a), (b),

and (c) as subsections (b), (c), and (d), respec-tively; and

(2) inserting before subsection (b), as redes-ignated, the following:

‘‘(a) INTEGRATED PROGRAM OFFICE.—‘‘(1) ESTABLISHMENT.—There is established

in the Office of Science and Technology Pol-icy an integrated program office for theglobal change research program.

‘‘(2) ORGANIZATION.—The integrated pro-gram office established under paragraph (1)shall be headed by the associate directorwith responsibility for climate changescience and technology and shall include arepresentative from each Federal agencyparticipating in the global change researchprogram.

‘‘(3) FUNCTION.—The integrated program of-fice shall—

‘‘(A) manage, working in conjunction withthe Committee, interagency coordinationand program integration of global change re-search activities and budget requests;

‘‘(B) ensure that the activities and pro-grams of each Federal agency or departmentparticipating in the program address thegoals and objectives identified in the stra-tegic research plan and interagency imple-mentation plans;

‘‘(C) ensure program and budget rec-ommendations of the Committee are commu-nicated to the President and are integratedinto the climate change action strategy;

‘‘(D) review, solicit, and identify, and allo-cate funds for, partnership projects that ad-dress critical research objectives or oper-ational goals of the program, includingprojects that would fill research gaps identi-fied by the program, and for which projectresources are shared among at least 2 agen-cies participating in the program; and

‘‘(E) review and provide recommendationson, in conjunction with the Committee, allannual appropriations requests from Federalagencies or departments participating in theprogram.

‘‘(4) GRANT AUTHORITY.—The IntegratedProgram Office may authorize 1 or more ofthe departments or agencies participating inthe program to enter into contracts andmake grants, using funds appropriated foruse by the Office of Science and TechnologyPolicy for the purpose of carrying out the re-sponsibilities of that Office.

‘‘(5) FUNDING.—For fiscal year 2003, andeach fiscal year thereafter, not less than$13,000,000 shall be made available to the In-tegrated Program Office from amounts ap-propriated to or for the use of the Office ofScience and Technology Policy.’’;

(3) by striking ‘‘Committee.’’ in paragraph(2) of subsection (c), as redesignated, and in-serting ‘‘Committee and the Integrated Pro-gram Office.’’; and

(4) by inserting ‘‘and the Integrated Pro-gram Office’’ after ‘‘Committee’’ in para-graph (1) of subsection (d), as redesignated.

PART II—NATIONAL CLIMATE SERVICESAND MONITORING

SEC. 1341. AMENDMENT OF NATIONAL CLIMATEPROGRAM ACT.

Except as otherwise expressly provided,whenever in this subtitle an amendment orrepeal is expressed in terms of an amend-ment to, or repeal of, a section or other pro-vision, the reference shall be considered tobe made to a section or other provision ofthe National Climate Program Act (15 U.S.C.2901 et seq.).

SEC. 1342. CHANGES IN FINDINGS.Section 2 (15 U.S.C. 2901) is amended—(1) by striking ‘‘Weather and climate

change affect’’ in paragraph (1) and inserting‘‘Weather, climate change, and climate vari-ability affect public safety, environmentalsecurity, human health,’’;

(2) by striking ‘‘climate’’ in paragraph (2)and inserting ‘‘climate, including seasonaland decadal fluctuations,’’;

(3) by striking ‘‘changes.’’ in paragraph (5)and inserting ‘‘changes and providing freeexchange of meteorological data.’’; and

(4) by adding at the end the following:‘‘(7) The present rate of advance in re-

search and development is inadequate andnew developments must be incorporated rap-idly into services for the benefit of the pub-lic.

‘‘(8) The United States lacks adequate in-frastructure and research to meet nationalclimate monitoring and prediction needs.’’.SEC. 1343. TOOLS FOR REGIONAL PLANNING.

Section 5(d) (15 U.S.C. 2904(d)) is amended—(1) by redesignating paragraphs (4) through

(9) as paragraphs (5) through (10), respec-tively;


‘‘(4) methods for improving modeling andpredictive capabilities and developing assess-ment methods to guide national, regional,and local planning and decision-making onland use, water hazards, and related issues;’’

(3) by inserting ‘‘sharing,’’ after ‘‘collec-tion,’’ in paragraph (5), as redesignated;

(4) by striking ‘‘experimental’’ each placeit appears in paragraph (9), as redesignated;

(5) by striking ‘‘preliminary’’ in paragraph(10), as redesignated;

(6) by striking ‘‘this Act,’’ the first place itappears in paragraph (10), as redesignated,and inserting ‘‘the Global Climate ChangeAct of 2002,’’; and

(7) by striking ‘‘this Act,’’ the second placeit appears in paragraph (10), as redesignated,and inserting ‘‘that Act,’’.SEC. 1344. AUTHORIZATION OF APPROPRIATIONS.

Section 9 (15 U.S.C. 2908) is amended—(1) by striking ‘‘1979,’’ and inserting

‘‘2002,’’;(2) by striking ‘‘1980,’’ and inserting

‘‘2003,’’;(3) by striking ‘‘1981,’’ and inserting

‘‘2004,’’; and(4) by striking ‘‘$25,500,000’’ and inserting

‘‘$75,500,000’’.SEC. 1345. NATIONAL CLIMATE SERVICE PLAN.

The Act (15 U.S.C. 2901 et seq.) is amendedby inserting after section 5 the following:‘‘SEC. 6. NATIONAL CLIMATE SERVICE PLAN.

‘‘Within one year after the date of enact-ment of the Global Climate Change Act of2002, the Secretary of Commerce shall sub-mit to the Senate Committee on Commerce,Science, and Transportation and the HouseScience Committee a plan of action for a Na-tional Climate Service under the NationalClimate Program. The plan shall set forthrecommendations and funding estimatesfor—

‘‘(1) a national center for operational cli-mate monitoring and predicting with thefunctional capacity to monitor and adjustobserving systems as necessary to reducebias;

‘‘(2) the design, deployment, and operationof an adequate national climate observingsystem that builds upon existing environ-mental monitoring systems and closes gapsin coverage by existing systems;

‘‘(3) the establishment of a national coordi-nated modeling strategy, including a na-tional climate modeling center to provide adedicated capability for climate modelingand a regular schedule of projections on along and short term time schedule and at arange of spatial scales;

CONGRESSIONAL RECORD — SENATE S1495March 5, 2002‘‘(4) improvements in modeling and assess-

ment capabilities needed to integrate infor-mation to predict regional and local climatechanges and impacts;

‘‘(5) in coordination with the private sec-tor, improving the capacity to assess the im-pacts of predicted and projected climatechanges and variations;

‘‘(6) a program for long term stewardship,quality control, development of relevant cli-mate products, and efficient access to all rel-evant climate data, products, and criticalmodel simulations; and

‘‘(7) mechanisms to coordinate among Fed-eral agencies, State, and local governmententities and the academic community to en-sure timely and full sharing and dissemina-tion of climate information and services,both domestically and internationally.’’.SEC. 1346. INTERNATIONAL PACIFIC RESEARCH

AND COOPERATION.The Secretary of Commerce, in coopera-

tion with the Administrator of the NationalAeronautics and Space Administration, shallconduct international research in the Pacificregion that will increase understanding ofthe nature and predictability of climate var-iability in the Asia- Pacific sector, includingregional aspects of global environmentalchange. Such research activities shall beconducted in cooperation with other nationsof the region. There are authorized to be ap-propriated for purposes of this section$1,500,000 to the National Oceanic and At-mospheric Administration, $1,500,000 to theNational Aeronautics and Space Administra-tion, and $500,000 for the Pacific ENSO Appli-cations Center.SEC. 1347. REPORTING ON TRENDS.

(a) ATMOSPHERIC MONITORING ANDVERIFICATION PROGRAM.—The Secretary ofCommerce, in coordination with relevantFederal agencies, shall, as part of the Na-tional Climate Service, establish an atmos-pheric monitoring and verification programutilizing aircraft, satellite, ground sensors,and modeling capabilities to monitor, meas-ure, and verify atmospheric greenhouse gaslevels, dates, and emissions. Where feasible,the program shall measure emissions fromidentified sources participating in the re-porting system for verification purposes. Theprogram shall use measurements and stand-ards that are consistent with those utilizedin the greenhouse gas measurement and re-porting system established under subsection(a) and the registry established under section1102.

(b) ANNUAL REPORTING.—The Secretary ofCommerce shall issue an annual report thatidentifies greenhouse emissions and trendson a local, regional, and national level. Thereport shall also identify emissions or reduc-tions attributable to individual or multiplesources covered by the greenhouse gas meas-urement and reporting system establishedunder section 1102.

PART III—OCEAN AND COASTALOBSERVING SYSTEM

SEC. 1351. OCEAN AND COASTAL OBSERVING SYS-TEM.

(a) ESTABLISHMENT.—The President,through the National Ocean Research Lead-ership Council, established by section 7902(a)of title 10, United States Code, shall estab-lish and maintain an integrated ocean andcoastal observing system that provides forlong-term, continuous, and real-time obser-vations of the oceans and coasts for the pur-poses of—

(1) understanding, assessing and respond-ing to human-induced and natural processesof global change;

(2) improving weather forecasts and publicwarnings;

(3) strengthening national security andmilitary preparedness;

(4) enhancing the safety and efficiency ofmarine operations;

(5) supporting efforts to restore the healthof and manage coastal and marine eco-systems and living resources;

(6) monitoring and evaluating the effec-tiveness of ocean and coastal environmentalpolicies;

(7) reducing and mitigating ocean andcoastal pollution; and

(8) providing information that contributesto public awareness of the state and impor-tance of the oceans.

(b) COUNCIL FUNCTIONS.—In addition to itsresponsibilities under section 7902(a) of suchtitle, the Council shall be responsible forplanning and coordinating the observing sys-tem and in carrying out this responsibilityshall—

(1) develop and submit to the Congress,within 6 months after the date of enactmentof this Act, a plan for implementing a na-tional ocean and coastal observing systemthat—

(A) uses an end-to-end engineering and de-velopment approach to develop a system de-sign and schedule for operational implemen-tation;

(B) determines how current and plannedobserving activities can be integrated in acost-effective manner;

(C) provides for regional and concept dem-onstration projects;

(D) describes the role and estimated budgetof each Federal agency in implementing theplan;

(E) contributes, to the extent practicable,to the National Global Change ResearchPlan under section 104 of the Global ChangeResearch Act of 1990 (15 U.S.C. 2934); and

(F) makes recommendations for coordina-tion of ocean observing activities of theUnited States with those of other nationsand international organizations;

(2) serve as the mechanism for coordi-nating Federal ocean observing requirementsand activities;

(3) work with academic, State, industryand other actual and potential users of theobserving system to make effective use ofexisting capabilities and incorporate newtechnologies;

(4) approve standards and protocols for theadministration of the system, including—

(A) a common set of measurements to becollected and distributed routinely and byuniform methods;

(B) standards for quality control and as-sessment of data;

(C) design, testing and employment of fore-cast models for ocean conditions;

(D) data management, including datatransfer protocols and archiving; and

(E) designation of coastal ocean observingregions; and

(5) in consultation with the Secretary ofState, provide representation at inter-national meetings on ocean observing pro-grams and coordinate relevant Federal ac-tivities with those of other nations.

(c) SYSTEM ELEMENTS.—The integratedocean and coastal observing system shall in-clude the following elements:

(1) A nationally coordinated network of re-gional coastal ocean observing systems thatmeasure and disseminate a common set ofocean observations and related products in auniform manner and according to sound sci-entific practice, but that are adapted to localand regional needs.

(2) Ocean sensors for climate observations,including the Arctic Ocean and sub-polarseas.

(3) Coastal, relocatable, and cabled seafloor observatories.

(4) Broad bandwidth communications thatare capable of transmitting high volumes of

data from open ocean locations at low costand in real time.

(5) Ocean data management and assimila-tion systems that ensure full use of newsources of data from space-borne and in situsensors.

(6) Focused research programs.(7) Technology development program to de-

velop new observing technologies and tech-niques, including data management and dis-semination.

(8) Public outreach and education.SEC. 1352. AUTHORIZATION OF APPROPRIATIONS.

For development and implementation of anintegrated ocean and coastal observationsystem under this title, including financialassistance to regional coastal ocean observ-ing systems, there are authorized to be ap-propriated $235,000,000 in fiscal year 2003,$315,000,000 in fiscal year 2004, $390,000,000 infiscal year 2005, and $445,000,000 in fiscal year2006.

Subtitle E—Climate Change TechnologySEC. 1361. NIST GREENHOUSE GAS FUNCTIONS.

Section 2(c) of the National Institute ofStandards and Technology Act (15 U.S.C.272(c)) is amended—

(1) striking ‘‘and’’ after the semicolon inparagraph (21);

(2) by redesignating paragraph (22) as para-graph (23); and


‘‘(22) perform research to develop enhancedmeasurements, calibrations, standards, andtechnologies which will enable the reducedproduction in the United States of green-house gases associated with global warming,including carbon dioxide, methane, nitrousoxide, ozone, perfluorocarbons, hydrofluoro-carbons, and sulphur hexafluoride; and’’.SEC. 1362. DEVELOPMENT OF NEW MEASURE-

MENT TECHNOLOGIES.(a) IN GENERAL.—The Secretary of Com-

merce shall initiate a program to develop,with technical assistance from appropriateFederal agencies, innovative standards andmeasurement technologies (including tech-nologies to measure carbon changes due tochanges in land use cover) to calculate—

(1) greenhouse gas emissions and reduc-tions from agriculture, forestry, and otherland use practices;

(2) non-carbon dioxide greenhouse gasemissions from transportation;

(3) greenhouse gas emissions from facilitiesor sources using remote sensing technology;and

(4) any other greenhouse gas emission orreductions for which no accurate or reliablemeasurement technology exists.SEC. 1363. ENHANCED ENVIRONMENTAL MEAS-

UREMENTS AND STANDARDS.The National Institute of Standards and

Technology Act (15 U.S.C. 271 et seq.) isamended—

(1) by redesignating sections 17 through 32as sections 18 through 33, respectively; and

(2) by inserting after section 16 the fol-lowing:‘‘SEC. 17. CLIMATE CHANGE STANDARDS AND

PROCESSES.‘‘(a) IN GENERAL.—The Director shall es-

tablish within the Institute a program toperform and support research on global cli-mate change standards and processes, withthe goal of providing scientific and technicalknowledge applicable to the reduction ofgreenhouse gases (as defined in section 4 ofthe Global Climate Change Act of 2002).

‘‘(b) RESEARCH PROGRAM.—‘‘(1) IN GENERAL.—The Director is author-

ized to conduct, directly or through con-tracts or grants, a global climate changestandards and processes research program.

‘‘(2) RESEARCH PROJECTS.—The specific con-tents and priorities of the research program

CONGRESSIONAL RECORD — SENATES1496 March 5, 2002shall be determined in consultation with ap-propriate Federal agencies, including the En-vironmental Protection Agency, the Na-tional Oceanic and Atmospheric Administra-tion, and the National Aeronautics andSpace Administration. The program gen-erally shall include basic and appliedresearch—

‘‘(A) to develop and provide the enhancedmeasurements, calibrations, data, models,and reference material standards which willenable the monitoring of greenhouse gases;

‘‘(B) to assist in establishing of a baselinereference point for future trading in green-house gases and the measurement of progressin emissions reduction;

‘‘(C) that will be exchanged internationallyas scientific or technical information whichhas the stated purpose of developing mutu-ally recognized measurements, standards,and procedures for reducing greenhousegases; and

‘‘(D) to assist in developing improved in-dustrial processes designed to reduce oreliminate greenhouse gases.

‘‘(c) NATIONAL MEASUREMENT LABORA-TORIES.—

‘‘(1) IN GENERAL.—In carrying out this sec-tion, the Director shall utilize the collectiveskills of the National Measurement Labora-tories of the National Institute of Standardsand Technology to improve the accuracy ofmeasurements that will permit better under-standing and control of these industrialchemical processes and result in the reduc-tion or elimination of greenhouse gases.

‘‘(2) MATERIAL, PROCESS, AND BUILDING RE-SEARCH.—The National Measurement Lab-oratories shall conduct research under thissubsection that includes—

‘‘(A) developing material and manufac-turing processes which are designed for en-ergy efficiency and reduced greenhouse gasemissions into the environment;

‘‘(B) developing environmentally-friendly,‘green’ chemical processes to be used by in-dustry; and

‘‘(C) enhancing building performance witha focus in developing standards or toolswhich will help incorporate low or no-emis-sion technologies into building designs.

‘‘(3) STANDARDS AND TOOLS.—The NationalMeasurement Laboratories shall developstandards and tools under this subsectionthat include software to assist designers inselecting alternate building materials, per-formance data on materials, artificial intel-ligence-aided design procedures for buildingsubsystems and ‘smart buildings’, and im-proved test methods and rating proceduresfor evaluating the energy performance ofresidential and commercial appliances andproducts.

‘‘(d) NATIONAL VOLUNTARY LABORATORY AC-CREDITATION PROGRAM.—The Director shallutilize the National Voluntary LaboratoryAccreditation Program under this section toestablish a program to include specific cali-bration or test standards and related meth-ods and protocols assembled to satisfy theunique needs for accreditation in measuringthe production of greenhouse gases. In car-rying out this subsection the Director maycooperate with other departments and agen-cies of the Federal Government, State andlocal governments, and private organiza-tions.’’.SEC. 1364. TECHNOLOGY DEVELOPMENT AND

DIFFUSION.(a) ADVANCED TECHNOLOGY PROGRAM COM-

PETITIONS.—The Director of the National In-stitute of Standards and Technology,through the Advanced Technology Program,may hold a portion of the Institute’s com-petitions in thematic areas, selected afterconsultation with industry, academics, andother Federal Agencies, designed to developand commercialize enabling technologies to

address global climate change by signifi-cantly reducing greenhouse gas emissionsand concentrations in the atmosphere.

(b) MANUFACTURING EXTENSION PARTNER-SHIP PROGRAM FOR ‘‘GREEN’’ MANUFAC-TURING.—The Director of the National Insti-tute of Standards and Technology, throughthe Manufacturing Extension PartnershipProgram, may develop a program to supportthe implementation of new ‘‘green’’ manu-facturing technologies and techniques by themore than 380,000 small manufacturers.SEC. 1365. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Director to carry out functions pursuantto sections 1345, 1351, and 1361 through 1363,$10,000,000 for fiscal years 2002 through 2006.Subtitle F—Climate Adaptation and Hazards

PreventionPART I—ASSESSMENT AND ADAPTATION

SEC. 1371. REGIONAL CLIMATE ASSESSMENT ANDADAPTATION PROGRAM.

(a) IN GENERAL.—The President shall es-tablish within the Department of Commercea National Climate Change Vulnerabilityand Adaptation Program for regional im-pacts related to increasing concentrations ofgreenhouse gases in the atmosphere and cli-mate variability.

(b) COORDINATION.—In designing such pro-gram the Secretary shall consult with theFederal Emergency Management Agency,the Environmental Protection Agency, theArmy Corps of Engineers, the Department ofTransportation, and other appropriate Fed-eral, State, and local government entities.

(c) VULNERABILITY ASSESSMENTS.—The pro-gram shall—

(1) evaluate, based on predictions devel-oped under this Act and the National Cli-mate Program Act (15 U.S.C. 2901 et seq.), re-gional vulnerability to phenomena associ-ated with climate change and climate varia-bility, including—

(A) increases in severe weather events;(B) sea level rise and shifts in the

hydrological cycle;(C) natural hazards, including tsunami,

drought, flood and fire; and(D) alteration of ecological communities,

including at the ecosystem or watershed lev-els; and

(2) build upon predictions and other infor-mation developed in the National Assess-ments prepared under the Global Change Re-search Act of 1990 (15 U.S.C. 2921 et seq.).

(d) PREPAREDNESS RECOMMENDATIONS.—Theprogram shall submit a report to Congresswithin 2 years after the date of enactment ofthis Act that identifies and recommends im-plementation and funding strategies forshort and long-term actions that may betaken at the national, regional, State, andlocal level—

(1) to minimize threats to human life andproperty,

(2) to improve resilience to hazards,(3) to minimize economic impacts; and(4) to reduce threats to critical biological

and ecological processes.(e) INFORMATION AND TECHNOLOGY.—The

Secretary shall make available appropriateinformation and other technologies andproducts that will assist national, regional,State, and local efforts to reduce loss of lifeand property, and coordinate disseminationof such technologies and products.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Commerce $4,500,000 to im-plement the requirements of this section.SEC. 1372. COASTAL VULNERABILITY AND ADAP-

TATION.(a) COASTAL VULNERABILITY.—Within 2

years after the date of enactment of thisAct, the Secretary shall, in consultationwith the appropriate Federal, State, and

local governmental entities, conduct re-gional assessments of the vulnerability ofcoastal areas to hazards associated with cli-mate change, climate variability, sea levelrise, and fluctuation of Great Lakes waterlevels. The Secretary may also establish, aswarranted, longer term regional assessmentprograms. The Secretary may also consultwith the governments of Canada and Mexicoas appropriate in developing such regionalassessments. In preparing the regional as-sessments, the Secretary shall collect andcompile current information on climatechange, sea level rise, natural hazards, andcoastal erosion and mapping, and specifi-cally address impacts on Arctic regions andthe Central, Western, and South Pacific re-gions. The regional assessments shall includean evaluation of—

(1) social impacts associated with threatsto and potential losses of housing, commu-nities, and infrastructure;

(2) physical impacts such as coastal ero-sion, flooding and loss of estuarine habitat,saltwater intrusion of aquifers and saltwaterencroachment, and species migration; and

(3) economic impact on local, State, andregional economies, including the impact onabundance or distribution of economicallyimportant living marine resources.

(b) COASTAL ADAPTATION PLAN.—The Sec-retary shall, within 3 years after the date ofenactment of this Act, submit to the Con-gress a national coastal adaptation plan,composed of individual regional adaptationplans that recommend targets and strategiesto address coastal impacts associated withclimate change, sea level rise, or climatevariability. The plan shall be developed withthe participation of other Federal, State,and local government agencies that will becritical in the implementation of the plan atthe State and local levels. The regional plansthat will make up the national coastal adap-tation plan shall be based on the informationcontained in the regional assessments andshall identify special needs associated withArctic areas and the Central, Western, andSouth Pacific regions. The Plan shall rec-ommend both short and long-term adapta-tion strategies and shall include rec-ommendations regarding—

(1) Federal flood insurance program modi-fications;

(2) areas that have been identified as highrisk through mapping and assessment;

(3) mitigation incentives such as rollingeasements, strategic retreat, State or Fed-eral acquisition in fee simple or other inter-est in land, construction standards, and zon-ing;

(4) land and property owner education;(5) economic planning for small commu-

nities dependent upon affected coastal re-sources, including fisheries; and

(6) funding requirements and mechanisms.(c) TECHNICAL PLANNING ASSISTANCE.—The

Secretary, through the National Ocean Serv-ice, shall establish a coordinated program toprovide technical planning assistance andproducts to coastal States and local govern-ments as they develop and implement adap-tation or mitigation strategies and plans.Products, information, tools and technicalexpertise generated from the development ofthe regional assessments and the regionaladaptation plans will be made available tocoastal States for the purposes of developingtheir own State and local plans.

(d) COASTAL ADAPTATION GRANTS.—TheSecretary shall provide grants of financialassistance to coastal States with Federallyapproved coastal zone management pro-grams to develop and begin implementingcoastal adaptation programs if the Stateprovides a Federal-to-State match of 4 to 1in the first fiscal year, 2.3 to 1 in the secondfiscal year, 2 to 1 in the third fiscal year, and

CONGRESSIONAL RECORD — SENATE S1497March 5, 20021 to 1 thereafter. Distribution of these fundsto coastal states shall be based upon the for-mula established under section 306(c) of theCoastal Zone Management Act of 1972 (16U.S.C. 1455(c)), adjusted in consultation withthe States as necessary to provide assistanceto particularly vulnerable coastlines.

(e) COASTAL RESPONSE PILOT PROGRAM.—(1) IN GENERAL.—The Secretary shall estab-

lish a 4-year pilot program to provide finan-cial assistance to coastal communities mostadversely affected by the impact of climatechange or climate variability that are lo-cated in States with Federally approvedcoastal zone management programs.

(2) ELIGIBLE PROJECTS.—A project is eligi-ble for financial assistance under the pilotprogram if it—

(A) will restore or strengthen coastal re-sources, facilities, or infrastructure thathave been damaged by such an impact, as de-termined by the Secretary;

(B) meets the requirements of the CoastalZone Management Act (16 U.S.C. 1451 et seq.)and is consistent with the coastal zone man-agement plan of the State in which it is lo-cated; and

(C) will not cost more than $100,000.(3) FUNDING SHARE.—The Federal funding

share of any project under this subsectionmay not exceed 75 percent of the total costof the project. In the administration of thisparagraph—

(A) the Secretary may take into accountin-kind contributions and other non-cashsupport of any project to determine the Fed-eral funding share for that project; and

(B) the Secretary may waive the require-ments of this paragraph for a project in acommunity if—

(i) the Secretary determines that theproject is important; and

(ii) the economy and available resources ofthe community in which the project is to beconducted are insufficient to meet the non-Federal share of the projects’s costs.

(f) DEFINITIONS.—Any term used in thissection that is defined in section 304 of theCoastal Zone Management Act of 1972 (16U.S.C. 1453) has the meaning given it by thatsection.

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated$3,000,000 annually for regional assessmentsunder subsection (a), and $3,000,000 annuallyfor coastal adaptation grants under sub-section (d).

PART II—FORECASTING AND PLANNINGPILOT PROGRAMS

SEC. 1381. REMOTE SENSING PILOT PROJECTS.(a) IN GENERAL.—The Administrator of the

National Aeronautics and Space Administra-tion shall establish, through the NationalOceanic and Atmospheric Administration’sCoastal Services Center, a program of grantsfor competitively awarded pilot projects toexplore the integrated use of sources of re-mote sensing and other geospatial informa-tion to address State, local, regional, andtribal agency needs to forecast a plan for ad-aptation to coastal zone and land usechanges that may result as a consequence ofglobal climate change or climate variability.

(b) PREFERRED PROJECTS.—In awardinggrants under this section, the Center shallgive preference to projects that—

(1) focus on areas that are most sensitiveto the consequences of global climate changeor climate variability;

(2) make use of existing public or commer-cial data sets;

(3) integrate multiple sources of geospatialinformation, such as geographic informationsystem data, satellite-provided positioningdata, and remotely sensed data, in innova-tive ways;

(4) offer diverse, innovative approachesthat may serve as models for establishing a

future coordinated framework for planningstrategies for adaptation to coastal zone andland use changes related to global climatechange or climate variability;

(5) include funds or in-kind contributionsfrom non-Federal sources;

(6) involve the participation of commercialentities that process raw or lightly processeddata, often merging that data with othergeospatial information, to create data prod-ucts that have significant value added to theoriginal data; and

(7) taken together demonstrate as diverse aset of public sector applications as possible.

(c) OPPORTUNITIES.—In carrying out thissection, the Center shall seek opportunitiesto assist—

(1) in the development of commercial ap-plications potentially available from the re-mote sensing industry; and

(2) State, local, regional, and tribal agen-cies in applying remote sensing and othergeospatial information technologies for man-agement and adaptation to coastal and landuse consequences of global climate change orclimate variability.

(d) DURATION.—Assistance for a pilotproject under subsection (a) shall be pro-vided for a period of not more than 3 years.

(e) RESPONSIBILITIES OF GRANTEES.—Within180 days after completion of a grant project,each recipient of a grant under subsection (a)shall transmit a report to the Center on theresults of the pilot project and conduct atleast one workshop for potential users to dis-seminate the lessons learned from the pilotproject as widely as feasible.

(f) REGULATIONS.—The Center shall issueregulations establishing application, selec-tion, and implementation procedures forpilot projects, and guidelines for reports andworkshops required by this section.SEC. 1382. DATABASE ESTABLISHMENT.

The Center shall establish and maintain anelectronic, Internet-accessible database ofthe results of each pilot project completedunder section 1381.SEC. 1383. DEFINITIONS.

In this subtitle:(1) CENTER.—The term ‘‘Center’’ means the

Coastal Services Center of the National Oce-anic and Atmospheric Administration.

(2) GEOSPATIAL INFORMATION.—The term‘‘geospatial information’’ means knowledgeof the nature and distribution of physicaland cultural features on the landscape basedon analysis of data from airborne or space-borne platforms or other types and sourcesof data.

(3) INSTITUTION OF HIGHER EDUCATION.—Theterm ‘‘institution of higher education’’ hasthe meaning given that term in section101(a) of the Higher Education Act of 1965 (20U.S.C. 1001(a)).SEC. 1384. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated tothe Administrator to carry out the provi-sions of this subtitle—


TITLE XIV—MANAGEMENT OF DOESCIENCE AND TECHNOLOGY PROGRAMS

SEC. 1401. DEFINITIONS.In this title:(1) APPLICABILITY OF DEFINITIONS.—The

definitions in section 1203 shall apply.(2) SINGLE-PURPOSE RESEARCH FACILITY.—

The term ‘‘single-purpose research facility’’means any of the following primarily singlepurpose entities owned by the Department ofEnergy—

(A) Ames Laboratory;(B) East Tennessee Technology Park;(C) Environmental Measurement Labora-

tory;

(D) Fernald Environmental ManagementProject;

(E) Fermi National Accelerator Labora-tory;

(F) Kansas City Plant;(G) Nevada Test Site;(H) New Brunswick Laboratory;(I) Pantex Weapons Facility;(J) Princeton Plasma Physics Laboratory;(K) Savannah River Technology Center;(L) Stanford Linear Accelerator Center;(M) Thomas Jefferson National Accel-

erator Facility;(N) Y–12 facility at Oak Ridge National

Laboratory;(O) Waste Isolation Pilot Plant; or(P) other similar organization of the De-

partment designated by the Secretary thatengages in technology transfer, partnering,or licensing activities.SEC. 1402. AVAILABILITY OF FUNDS.

Funds authorized to be appropriated to theDepartment of Energy under title XII, titleXIII, and title XV shall remain availableuntil expended.SEC. 1403. COST SHARING.

(a) RESEARCH AND DEVELOPMENT.—For re-search and development projects funded fromappropriations authorized under subtitles Athrough D of title XII, the Secretary shallrequire 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 DEPLOYMENT.—Fordemonstration and technology deploymentactivities funded from appropriations au-thorized under subtitles A through D of titleXII, the Secretary shall require a commit-ment from non-federal sources of at least 50percent of the costs of the project directlyand specifically related to any demonstra-tion or technology deployment activity. TheSecretary may reduce or eliminate the non-federal requirement under this subsection ifthe Secretary determines that the reductionis necessary and appropriate considering thetechnological risks involved in the projectand is necessary to meet one or more goalsof this title.

(c) CALCULATION OF AMOUNT.—In calcu-lating the amount of the non-Federal com-mitment under subsection (a) or (b), the Sec-retary shall include cash, personnel, serv-ices, equipment, and other resources.SEC. 1404. MERIT REVIEW OF PROPOSALS.

Awards of funds authorized under title XII,subtitle A of title XIII, and title XV shall bemade only after an independent review of thescientific and technical merit of the pro-posals for such awards has been made by theDepartment of Energy.SEC. 1405. EXTERNAL TECHNICAL REVIEW OF DE-

PARTMENTAL PROGRAMS.(a) NATIONAL ENERGY RESEARCH AND DE-

VELOPMENT ADVISORY BOARDS.—(1) The Sec-retary shall establish an advisory board tooversee Department research and develop-ment programs in each of the followingareas—

(A) energy efficiency;(B) renewable energy;(C) fossil energy;(D) nuclear energy; and(E) climate change technology, with em-

phasis on integration, collaboration, andother special features of the cross-cuttingtechnologies supported by the Office of Cli-mate Change Technology.

(2) The Secretary may designate an exist-ing advisory board within the Department tofulfill the responsibilities of an advisoryboard under this subsection, or may enterinto appropriate arrangements with the Na-tional Academy of Sciences to establish suchan advisory board.

CONGRESSIONAL RECORD — SENATES1498 March 5, 2002(b) UTILIZATION OF EXISTING COMMITTEES.—

The Secretary of Energy shall continue touse the scientific program advisory commit-tees chartered under the Federal AdvisoryCommittee Act by the Office of Science tooversee research and development programsunder that Office.

(c) MEMBERSHIP.—Each advisory boardunder this section shall consist of expertsdrawn from industry, academia, federal lab-oratories, research institutions, or state,local, or tribal governments, as appropriate.

(d) MEETINGS AND PURPOSES.—Each advi-sory board under this section shall meet atleast semi-annually to review and advise onthe progress made by the respective re-search, development, demonstration, andtechnology deployment program. The advi-sory board shall also review the adequacyand relevance of the goals established foreach program by Congress and the President,and may otherwise advise on promising fu-ture directions in research and developmentthat should be considered by each program.SEC. 1406. IMPROVED COORDINATION AND MAN-

AGEMENT OF CIVILIAN SCIENCEAND TECHNOLOGY PROGRAMS.

(a) EFFECTIVE TOP-LEVEL COORDINATION OFRESEARCH AND DEVELOPMENT PROGRAMS.—Section 202(b) of the Department of EnergyOrganization Act (42 U.S.C. 7132(b)) is amend-ed to read as follows:

‘‘(b)(1) There shall be in the Department anUnder Secretary for Energy and Science,who shall be appointed by the President, byand with the advice and consent of the Sen-ate. The Under Secretary shall be com-pensated at the rate provided for at level IIIof the Executive Schedule under section 5314of title 5, United States Code.

‘‘(2) The Under Secretary for Energy andScience shall be appointed from among per-sons who—

‘‘(A) have extensive background in sci-entific or engineering fields; and

‘‘(B) are well qualified to manage the civil-ian research and development programs ofthe Department of Energy.

‘‘(3) The Under Secretary for Energy andScience shall—

‘‘(A) serve as the Science and TechnologyAdvisor to the Secretary;

‘‘(B) monitor the Department’s researchand development programs in order to advisethe Secretary with respect to any undesir-able duplication or gaps in such programs;

‘‘(C) advise the Secretary with respect tothe well-being and management of the multi-purpose laboratories under the jurisdictionof the Department;

‘‘(D) advise the Secretary with respect toeducation and training activities requiredfor effective short- and long-term basic andapplied research activities of the Depart-ment;

‘‘(E) advise the Secretary with respect togrants and other forms of financial assist-ance required for effective short- and long-term basic and applied research activities ofthe Department; and

‘‘(F) exercise authority and responsibilityover Assistant Secretaries carrying out en-ergy research and development and energytechnology functions under sections 203 and209, as well as other elements of the Depart-ment assigned by the Secretary.

(b) RECONFIGURATION OF POSITION OF DIREC-TOR OF THE OFFICE OF SCIENCE.—Section 209of the Department of Energy OrganizationAct (41 U.S.C. 7139) is amended to read asfollows—

‘‘(a) There shall be within the Departmentan Office of Science, to be headed by an As-sistant Secretary of Science, who shall beappointed by the President, by and with theadvice and consent of the Senate, and whoshall be compensated at the rate provided forlevel IV of the Executive Schedule under sec-tion 5315 of title 5, United States Code.

‘‘(b) The Assistant Secretary of Scienceshall be in addition to the Assistant Secre-taries provided for under section 203 of thisAct.

‘‘(c) It shall be the duty and responsibilityof the Assistant Secretary of Science tocarry out the fundamental science and engi-neering research functions of the Depart-ment, including the responsibility for policyand management of such research, as well asother functions vested in the Secretarywhich he may assign to the Assistant Sec-retary.’’.

(c) ADDITIONAL ASSISTANT SECRETARY POSI-TION TO ENABLE IMPROVED MANAGEMENT OFNUCLEAR ENERGY ISSUES.—

(1) Section 203(a) of the Department of En-ergy Organization Act (42 U.S.C. 7133(a)) isamended by striking ‘‘There shall be in theDepartment six Assistant Secretaries’’ andinserting ‘‘Except as provided in section 209,there shall be in the Department seven As-sistant Secretaries’’.

(2) It is the Sense of the Senate that theleadership for departmental missions in nu-clear energy should be at the Assistant Sec-retary level.

(d) TECHNICAL AND CONFORMING AMEND-MENTS.—

(1) Section 202 of the Department of En-ergy Organization Act (42 U.S.C. 7132) is fur-ther amended by adding the following at theend:

‘‘(d) There shall be in the Department anUnder Secretary, who shall be appointed bythe President, by and with the advice andconsent of the Senate, and who shall performsuch functions and duties as the Secretaryshall prescribe, consistent with this section.The Under Secretary shall be compensatedat the rate provided for level III of the Exec-utive Schedule under section 5314 of title 5,United States Code.

‘‘(e) There shall be in the Department aGeneral Counsel, who shall be appointed bythe President, by and with the advice andconsent of the Senate. The General Counselshall be compensated at the rate provided forlevel IV of the Executive Schedule under sec-tion 5315 of title 5, United States Code.’’.

(2) Section 5314 of title 5, United StatesCode, is amended by striking ‘‘Under Secre-taries of Energy (2)’’ and inserting ‘‘UnderSecretaries of Energy (3)’’.

(3) Section 5315 of title 5, United StatesCode, is amended by—

(A) striking ‘‘Director, Office of Science,Department of Energy.’’; and

(B) striking ‘‘Assistant Secretaries of En-ergy (6)’’ and inserting ‘‘Assistant Secre-taries of Energy (8)’’.

(4) The table of contents for the Depart-ment of Energy Organization Act (42 U.S.C.7101 note) is amended—

(A) by striking ‘‘Section 209’’ and inserting‘‘Sec. 209’’;

(B) by striking ‘‘213.’’ and inserting ‘‘Sec.213’’;

(C) by striking ‘‘214.’’ and inserting ‘‘Sec.214.’’;

(D) by striking ‘‘215.’’ and inserting ‘‘Sec.215.’’; and

(E) by striking ‘‘216.’’ and inserting ‘‘Sec.216.’’.SEC. 1407. IMPROVED COORDINATION OF TECH-

NOLOGY TRANSFER ACTIVITIES.(a) TECHNOLOGY TRANSFER COORDINATOR.—

The Secretary shall appoint a TechnologyTransfer Coordinator to perform oversight ofand policy development for technologytransfer activities at the Department. TheTechnology Transfer Coordinator shall co-ordinate the activities of the TechnologyPartnerships Working Group, and shall over-see the expenditure of funds allocated to theTechnology Partnership Working Group.

(b) TECHNOLOGY PARTNERSHIP WORKINGGROUP.—The Secretary shall establish a

Technology Partnership Working Group,which shall consist of representatives of theNational Laboratories and single-purpose re-search facilities, to—

(1) coordinate technology transfer activi-ties occurring at National Laboratories andsingle-purpose research facilities;

(2) exchange information about technologytransfer practices; and

(3) develop and disseminate to the publicand prospective technology partners infor-mation about opportunities and proceduresfor technology transfer with the Depart-ment.SEC 1408. TECHNOLOGY INFRASTRUCTURE PRO-

GRAM.(a) ESTABLISHMENT.—The Secretary shall

establish a Technology Infrastructure Pro-gram in accordance with this section.

(b) PURPOSE.—The purpose of the Tech-nology Infrastructure Program shall be toimprove the ability of National Laboratoriesor single-purpose research facilities to sup-port departmental missions by—

(1) stimulating the development of tech-nology clusters that can support depart-mental missions at the National Labora-tories or single-purpose research facilities;

(2) improving the ability of National Lab-oratories or single-purpose research facili-ties to leverage and benefit from commercialresearch, technology, products, processes,and services; and

(3) encouraging the exchange of scientificand technological expertise between Na-tional Laboratories or single-purpose re-search facilities and—

(A) institutions of higher education,(B) technology-related business concerns,(C) nonprofit institutions, and(D) agencies of State, tribal, or local gov-

ernments,

that can support departmental missions atthe National Laboratories and single-purposeresearch facilities.

(c) PROJECTS.—The Secretary shall author-ize the Director of each National Laboratoryor facility to implement the Technology In-frastructure Program at such National Lab-oratory or single-purpose research facilitythrough projects that meet the requirementsof subsections (d) and (e).

(d) PROGRAM REQUIREMENTS.—Each projectfunded under this section shall meet the fol-lowing requirements:

(1) MINIMUM PARTICIPANTS.—Each projectshall at a minimum include—

(A) a National Laboratory or single-pur-pose research facility; and

(B) one of the following entities—(i) a business,(ii) an institution of higher education,(iii) a nonprofit institution, or(iv) an agency of a State, local, or tribal

government.(2) COST SHARING.—(A) MINIMUM AMOUNT.—Not less than 50

percent of the costs of each project fundedunder this section shall be provided fromnon-Federal sources.

(B) QUALIFIED FUNDING AND RESOURCES.—(i)The calculation of costs paid by the non-Fed-eral sources to a project shall include cash,personnel, services, equipment, and other re-sources expended on the project.

(ii) Independent research and developmentexpenses of government contractors thatqualify for reimbursement under section 31–205–18(e) of the Federal Acquisition Regula-tions issued pursuant to section 25(c)(1) ofthe Office of Federal Procurement PolicyAct (41 U.S.C. 421(c)(1)) may be credited to-wards costs paid by non-Federal sources to aproject, if the expenses meet the other re-quirements of this section.

(iii) No funds or other resources expendedeither before the start of a project under this

CONGRESSIONAL RECORD — SENATE S1499March 5, 2002section or outside the project’s scope of workshall be credited toward the costs paid bythe non-Federal sources to the project.

(3) COMPETITIVE SELECTION.—All projects inwhich a party other than the Department, aNational Laboratory, or a single-purpose re-search facility receives funding under thissection shall, to the extent practicable, becompetitively selected by the National Lab-oratory or facility using procedures deter-mined to be appropriate by the Secretary.

(4) ACCOUNTING STANDARDS.—Any partici-pant that receives funds under this section,other than a National Laboratory or single-purpose research facility, may use generallyaccepted accounting principles for maintain-ing accounts, books, and records relating tothe project.

(5) LIMITATIONS.—No Federal funds shall bemade available under this section for—

(A) construction; or(B) any project for more than five years.(e) SELECTION CRITERIA.—(1) THRESHOLD FUNDING CRITERIA.—The Sec-

retary shall allocate funds under this sectiononly if the Director of the National Labora-tory or single-purpose research facility man-aging the project determines that the projectis likely to improve the ability of the Na-tional Laboratory or single-purpose researchfacility to achieve technical success in meet-ing departmental missions.

(2) ADDITIONAL CRITERIA.—The Secretaryshall require the Director of the NationalLaboratory or single-purpose research facil-ity managing a project under this section toconsider the following criteria in selecting aproject to receive Federal funds—

(A) the potential of the project to succeed,based on its technical merit, team members,management approach, resources, andproject plan;

(B) the potential of the project to promotethe development of a commercially sustain-able technology cluster, which will derivemost of the demand for its products or serv-ices from the private sector, and which willsupport departmental missions at the par-ticipating National Laboratory or single-purpose research facility;

(C) the potential of the project to promotethe use of commercial research, technology,products, processes, and services by the par-ticipating National Laboratory or single-purpose research facility to achieve its de-partmental mission or the commercial devel-opment of technological innovations made atthe participating National Laboratory orsingle-purpose research facility;

(D) the commitment shown by non-Federalorganizations to the project, based primarilyon the nature and amount of the financialand other resources they will risk on theproject;

(E) the extent to which the project in-volves a wide variety and number of institu-tions of higher education, nonprofit institu-tions, and technology-related business con-cerns that can support the missions of theparticipating National Laboratory or single-purpose research facility and that will makesubstantive contributions to achieving thegoals of the project;

(F) the extent of participation in theproject by agencies of State, tribal, or localgovernments that will make substantivecontributions to achieving the goals of theproject;

(G) the extent to which the project focuseson promoting the development of tech-nology-related business concerns that aresmall business concerns or involves suchsmall business concerns substantively in theproject; and

(H) such other criteria as the Secretary de-termines to be appropriate.

(f) REPORT TO CONGRESS.—Not later thanJanuary 1, 2004, the Secretary shall report to

Congress on whether the Technology Infra-structure Program should be continued and,if so, how the program should be managed.

(g) DEFINITIONS.—In this section:(1) TECHNOLOGY CLUSTER.—The term ‘‘tech-

nology cluster’’ means a concentration of—(A) technology-related business concerns;(B) institutions of higher education; or(C) other nonprofit institutions,

that reinforce each other’s performance inthe areas of technology development throughformal or informal relationships.

(2) TECHNOLOGY-RELATED BUSINESS CON-CERN.—The term ‘‘technology-related busi-ness concern’’ means a for-profit corpora-tion, company, association, firm, partner-ship, or small business concern that—

(A) conducts scientific or engineering re-search,

(B) develops new technologies,(C) manufacturer’s products based on new

technologies, or(D) performs technological services.(h) AUTHORIZATION OF APPROPRIATIONS.—

There are authorized to be appropriated tothe Secretary for activities under this sec-tion $10,000,000 for each of fiscal years 2003and 2004.SEC. 1409. SMALL BUSINESS ADVOCACY AND AS-

SISTANCE.(a) SMALL BUSINESS ADVOCATE.—The Sec-

retary shall require the Director of each Na-tional Laboratory, and may require the Di-rector of a single-purpose research facility,to appoint a small business advocate to—

(1) increase the participation of small busi-ness concerns, including socially and eco-nomically disadvantaged small business con-cerns, in procurement, collaborative re-search, technology licensing, and technologytransfer activities conducted by the NationalLaboratory or single-purpose research facil-ity;

(2) report to the Director of the NationalLaboratory or single-purpose research facil-ity on the actual participation of small busi-ness concerns in procurement and collabo-rative research along with recommenda-tions, if appropriate, on how to improve par-ticipation;

(3) make available to small business con-cerns training, mentoring, and clear, up-to-date information on how to participate inthe procurement and collaborative research,including how to submit effective proposals;

(4) increase the awareness inside the Na-tional Laboratory or single-purpose researchfacility of the capabilities and opportunitiespresented by small business concerns; and

(5) establish guidelines for the programunder subsection (b) and report on the effec-tiveness of such program to the Director ofthe National Laboratory or single-purposeresearch facility.

(b) ESTABLISHMENT OF SMALL BUSINESS AS-SISTANCE PROGRAM.—The Secretary shall re-quire the Director of each National Labora-tory, and may require the director of a sin-gle-purpose research facility, to establish aprogram to provide small businessconcerns—

(1) assistance directed at making themmore effective and efficient subcontractorsor suppliers to the National Laboratory orsingle-purpose research facility; or

(2) general technical assistance, the cost ofwhich shall not exceed $10,000 per instance ofassistance, to improve the small businessconcern’s products or services.

(c) USE OF FUNDS.—None of the funds ex-pended under subsection (b) may be used fordirect grants to the small business concerns.

(d) DEFINITIONS.—In this section:(1) SMALL BUSINESS CONCERN.—The term

‘‘small business concern’’ has the meaninggiven such term in section 3 of the SmallBusiness Act (15 U.S.C. 632).

(2) SOCIALLY AND ECONOMICALLY DISADVAN-TAGED SMALL BUSINESS CONCERNS.—The term

‘‘socially and economically disadvantagedsmall business concerns’’ has the meaninggiven such term in section 8(a)(4) of theSmall Business Act (15 U.S.C. 637(a)(4)).SEC. 1410. OTHER TRANSACTIONS.

(a) IN GENERAL.—Section 646 of the Depart-ment of Energy Organization Act (42 U.S.C.7256) is amended by adding at the end the fol-lowing:

‘‘(g) OTHER TRANSACTIONS AUTHORITY.—(1)In addition to other authorities granted tothe Secretary to enter into procurement con-tracts, leases, cooperative agreements,grants, and other similar arrangements, theSecretary may enter into other transactionswith public agencies, private organizations,or persons on such terms as the Secretarymay deem appropriate in furtherance ofbasic, applied, and advanced research func-tions now or hereafter vested in the Sec-retary. Such other transactions shall not besubject to the provisions of section 9 of theFederal Nonnuclear Energy Research andDevelopment Act of 1974 (42 U.S.C. 5908).

‘‘(2)(A) The Secretary of Energy shall en-sure that—

‘‘(i) to the maximum extent practicable, notransaction entered into under paragraph (1)provides for research that duplicates re-search being conducted under existing pro-grams carried out by the Department of En-ergy; and

‘‘(ii) to the extent that the Secretary de-termines practicable, the funds provided bythe Government under a transaction author-ized by paragraph (1) do not exceed the totalamount provided by other parties to thetransaction.

‘‘(B) A transaction authorized by para-graph (1) may be used for a research projectwhen the use of a standard contract, grant,or cooperative agreement for such project isnot feasible or appropriate.

‘‘(3)(A) The Secretary shall not discloseany trade secret or commercial or financialinformation submitted by a non-Federal en-tity under paragraph (1) that is privilegedand confidential.

‘‘(B) The Secretary shall not disclose, forfive years after the date the information isreceived, any other information submittedby a non-Federal entity under paragraph (1),including any proposal, proposal abstract,document supporting a proposal, businessplan, or technical information that is privi-leged and confidential.

‘‘(C) The Secretary may protect from dis-closure, for up to five years, any informationdeveloped pursuant to a transaction underparagraph (1) that would be protected fromdisclosure under section 552(b)(4) of title 5,United States Code, if obtained from a per-son other than a Federal agency.’’.

(b) IMPLEMENTATION.—Not later than sixmonths after the date of enactment of thissection, the Department shall establishguidelines for the use of other transactions.SEC. 1411. MOBILITY OF SCIENTIFIC AND TECH-

NICAL PERSONNEL.Not later than two years after the enact-

ment of this section, the Secretary, actingthrough the Technology Transfer Coordi-nator under section 1407, shall determinewhether each contractor operating a Na-tional Laboratory or single-purpose researchfacility has policies and procedures that donot create disincentives to the transfer ofscientific and technical personnel among thecontractor-operated National Laboratoriesor contractor-operated single-purpose re-search facilities.SEC. 1412. NATIONAL ACADEMY OF SCIENCES RE-

PORT.Within 90 days after the date of enactment

of this Act, the Secretary shall contractwith the National Academy of Sciences to—

(1) conduct a study on the obstacles to ac-celerating the innovation cycle for energytechnology, and

CONGRESSIONAL RECORD — SENATES1500 March 5, 2002(2) report to the Congress recommenda-

tions for shortening the cycle of research,development, and deployment.SEC. 1413. REPORT ON TECHNOLOGY READINESS

AND BARRIERS TO TECHNOLOGYTRANSFER.

(a) IN GENERAL.—The Secretary, actingthrough the Technology Partnership Work-ing Group and in consultation with rep-resentatives of affected industries, univer-sities, and small business concerns, shall—

(1) assess the readiness for technologytransfer of energy technologies developedthrough projects funded from appropriationsauthorized under subtitles A through D oftitle XIV, and

(2) identify barriers to technology transferand cooperative research and developmentagreements between the Department or aNational Laboratory and a non- federal per-son; and

(3) make recommendations for administra-tive or legislative actions needed to reduceor eliminate such barriers.

(b) REPORT.—The Secretary provide a re-port to Congress and the President on activi-ties carried out under this section not laterthan one year after the date of enactment ofthis section, and shall update such report ona biennial basis, taking into accountprogress toward eliminating barriers to tech-nology transfer identified in previous reportsunder this section.

TITLE XV—PERSONNEL AND TRAININGSEC. 1501. WORKFORCE TRENDS AND

TRAINEESHIP GRANTS.(a) WORKFORCE TRENDS.—(1) MONITORING.—The Secretary of Energy

(in this title referred to as the ‘‘Secretary’’),acting through the Administrator of the En-ergy Information Administration, in con-sultation with the Secretary of Labor, shallmonitor trends in the workforce of skilledtechnical personnel supporting energy tech-nology industries, including renewable en-ergy industries, companies developing andcommercializing devices to increase energy-efficiency, the oil and gas industry, nuclearpower industry, the coal industry, and otherindustrial sectors as the Secretary maydeem appropriate.

(2) ANNUAL REPORTS.—The Administratorof the Energy Information Administrationshall include statistics on energy industryworkforce trends in the annual reports of theEnergy Information Administration.

(3) SPECIAL REPORTS.—The Secretary shallreport to the appropriate committees of Con-gress whenever the Secretary determinesthat significant shortfalls of technical per-sonnel in one or more energy industry seg-ments are forecast or have occurred.

(b) TRAINEESHIP GRANTS FOR TECHNICALLYSKILLED PERSONNEL.—

(1) GRANT PROGRAMS.—The Secretary shallestablish grant programs in the appropriateoffices of the Department to enhance train-ing of technically skilled personnel for whicha shortfall is determined under subsection(a).

(2) ELIGIBLE INSTITUTIONS.—As determinedby the Secretary to be appropriate to theparticular workforce shortfall, the Secretaryshall make grants under paragraph (1) to—

(A) an institution of higher education;(B) a postsecondary educational institu-

tion providing vocational and technical edu-cation (within the meaning given thoseterms in section 3 of the Carl D. Perkins Vo-cational and Technical Education Act of 1998(20 U.S.C. 2302));

(C) appropriate agencies of State, local, ortribal governments; or

(D) joint labor and management trainingorganizations with state or federally recog-nized apprenticeship programs and other em-ployee-based training organizations as theSecretary considers appropriate.

(c) DEFINITION.—For purposes of this sec-tion, the term ‘‘skilled technical personnel’’means journey and apprentice level workerswho are enrolled in or have completed astate or federally recognized apprenticeshipprogram and other skilled workers in energytechnology industries.

(d) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1241(c), there are authorized to be appro-priated to the Secretary for activities underthis section such sums as may be necessaryfor each fiscal year.SEC. 1502. POSTDOCTORAL AND SENIOR RE-

SEARCH FELLOWSHIPS IN ENERGYRESEARCH.

(a) POSTDOCTORAL FELLOWSHIPS.—The Sec-retary shall establish a program of fellow-ships to encourage outstanding young sci-entists and engineers to pursue postdoctoralresearch appointments in energy researchand development at institutions of highereducation of their choice. In establishing aprogram under this subsection, the Sec-retary may enter into appropriate arrange-ments with the National Academy ofSciences to help administer the program.

(b) DISTINGUISHED SENIOR RESEARCH FEL-LOWSHIPS.—The Secretary shall establish aprogram of fellowships to allow outstandingsenior researchers in energy research and de-velopment and their research groups to ex-plore research and development topics oftheir choosing for a fixed period of time.Awards under this program shall be made onthe basis of past scientific or technical ac-complishment and promise for continued ac-complishment during the period of support,which shall not be less than 3 years.

(c) AUTHORIZATION OF APPROPRIATIONS.—From amounts authorized under section1241(c), there are authorized to be appro-priated to the Secretary for activities underthis section such sums as may be necessaryfor each fiscal year.SEC. 1503. TRAINING GUIDELINES FOR ELECTRIC

ENERGY INDUSTRY PERSONNEL.(a) MODEL GUIDELINES.—The Secretary

shall, in cooperation with electric genera-tion, transmission, and distribution compa-nies and recognized representatives of em-ployees of those entities, develop model em-ployee training guidelines to support electricsupply system reliability and safety.

(b) CONTENT OF GUIDELINES.—The guide-lines under this section shall include—

(1) requirements for worker training, com-petency, and certification, developed usingcriteria set forth by the Utility IndustryGroup recognized by the National SkillStandards Board; and

(2) consolidation of existing guidelines onthe construction, operation, maintenance,and inspection of electric supply generation,transmission and distribution facilities suchas those established by the National ElectricSafety Code and other industry consensusstandards.SEC. 1504. NATIONAL CENTER ON ENERGY MAN-

AGEMENT AND BUILDING TECH-NOLOGIES.

The Secretary shall establish a NationalCenter on Energy Management and BuildingTechnologies, to carry out research, edu-cation, and training activities to facilitatethe improvement of energy efficiency and in-door air quality in industrial, commercialand residential buildings. The National Cen-ter shall be established in cooperation with—

(1) recognized representatives of employeesin the heating, ventilation, and air condi-tioning industry;

(2) contractors that install and maintainheating, ventilation and air conditioningsystems and equipment;

(3) manufacturers of heating, ventilationand air-conditioning systems and equipment;

(4) representatives of the advanced build-ing envelope industry, including design, win-dows, lighting, and insulation industries; and

(5) other entities as appropriate.

SEC. 1505. IMPROVED ACCESS TO ENERGY-RE-LATED SCIENTIFIC AND TECHNICALCAREERS.

(a) DEPARTMENT OF ENERGY SCIENCE EDU-CATION PROGRAMS.—Section 3164 of the De-partment of Energy Science Education En-hancement Act (42 U.S.C. 7381a) is amendedby adding at the end the following:

‘‘(c) PROGRAMS FOR WOMEN AND MINORITYSTUDENTS.—In carrying out a program undersubsection (a), the Secretary shall give pri-ority to activities that are designed to en-courage women and minority students topursue scientific and technical careers.’’.

(b) PARTNERSHIPS WITH HISTORICALLYBLACK COLLEGES AND UNIVERSITIES, HIS-PANIC-SERVICING INSTITUTIONS, AND TRIBALCOLLEGES.—The Department of EnergyScience Education Enhancement Act (42U.S.C. 7381 et seq.) is amended—

(1) by redesignating sections 3167 and 3168as sections 3168 and 3169, respectively; and

(2) by inserting after section 3166 the fol-lowing:

‘‘SEC. 3167. PARTNERSHIPS WITH HISTORICALLYBLACK COLLEGES AND UNIVER-SITIES, HISPANIC-SERVING INSTITU-TIONS, AND TRIBAL COLLEGES.

‘‘(a) DEFINITIONS.—In this section:‘‘(1) HISPANIC-SERVING INSTITUTION.—The

term ‘Hispanic-serving institution’ has themeaning given the term in section 502(a) ofthe Higher Education Act of 1965 (20 U.S.C.1101a(a)).

‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI-VERSITY.—The term ‘historically Black col-lege or university’ has the meaning given theterm ‘part B institution’ in section 322 of theHigher Education Act of 1965 (20 U.S.C. 1061).

‘‘(3) NATIONAL LABORATORY.—The term ‘Na-tional Laboratory’ has the meaning giventhe term in section 1203 of the EnergyScience and Technology Enhancement Act of2002.

‘‘(4) SCIENCE FACILITY.—The term ‘sciencefacility’ has the meaning given the term‘single-purpose research facility’ in section1401 of the Energy Science and TechnologyEnhancement Act of 2002.

‘‘(5) TRIBAL COLLEGE.—The term ‘tribal col-lege’ has the meaning given the term ‘trib-ally controlled college or university’ in sec-tion 2(a) of the Tribally Controlled Collegeor University Assistance Act of 1978 (25U.S.C. 1801(a)).

‘‘(b) EDUCATION PARTNERSHIP.—‘‘(1) IN GENERAL.—The Secretary shall di-

rect the Director of each National Labora-tory, and may direct the head of any sciencefacility, to increase the participation of his-torically Black colleges or universities, His-panic-serving institutions, or tribal collegesin activities that increase the capacity ofthe historically Black colleges or univer-sities, Hispanic-serving institutions, or trib-al colleges to train personnel in science orengineering.

‘‘(2) ACTIVITIES.—An activity under para-graph (1) may include—

‘‘(A) collaborative research;‘‘(B) a transfer of equipment;‘‘(C) training of personnel at a National

Laboratory or science facility; and‘‘(D) a mentoring activity by personnel at

a National Laboratory or science facility.‘‘(c) REPORT.—Not later than 2 years after

the date of enactment of this section, theSecretary shall submit to the Committee onScience of the House of Representatives andthe Committee on Energy and Natural Re-sources of the Senate a report on the activi-ties carried out under this section.’’.

CONGRESSIONAL RECORD — SENATE S1501March 5, 2002DIVISION F—TECHNOLOGY ASSESSMENT

AND STUDIESTITLE XVI—TECHNOLOGY ASSESSMENT

SEC. 1601. NATIONAL SCIENCE AND TECHNOLOGYASSESSMENT SERVICE.

The National Science and Technology Pol-icy, Organization, and Priorities Act of 1976(42 U.S.C. 6601 et seq.) is amended by addingat the end the following:

‘‘TITLE VII—NATIONAL SCIENCE ANDTECHNOLOGY ASSESSMENT SERVICE

‘‘SEC. 701. ESTABLISHMENT.‘‘There is hereby created a Science and

Technology Assessment Service (hereinafterreferred to as the ‘Service’), which shall bewithin and responsible to the legislativebranch of the Government.‘‘SEC. 702. COMPOSITION.

‘‘The Service shall consist of a Science andTechnology Board (hereinafter referred to asthe ‘Board’) which shall formulate and pro-mulgate the policies of the Service, and a Di-rector who shall carry out such policies andadminister the operations of the Service.‘‘SEC. 703. FUNCTIONS AND DUTIES.

‘‘The Service shall coordinate and developinformation for Congress relating to the usesand application of technology to address cur-rent national science and technology policyissues. In developing such technical assess-ments for Congress, the Service shall utilize,to the extent practicable, experts selected incoordination with the National ResearchCouncil.‘‘SEC. 704. INITIATION OF ACTIVITIES.

‘‘Science and technology assessment ac-tivities undertaken by the Service may beinitiated upon the request of—

‘‘(1) the Chairman of any standing, special,or select committee of either House of theCongress, or of any joint committee of theCongress, acting for himself or at the requestof the ranking minority member or a major-ity of the committee members;

‘‘(2) the Board; or‘‘(3) the Director.

‘‘SEC. 705. ADMINISTRATION AND SUPPORT.‘‘The Director of the Science and Tech-

nology Assessment Service shall be ap-pointed by the Board and shall serve for aterm of 6 years unless sooner removed by theBoard. The Director shall receive basic payat the rate provided for level III of the Exec-utive Schedule under section 5314 of title 5,United States Code. The Director shall con-tract for administrative support from the Li-brary of Congress.‘‘SEC. 706. AUTHORITY.

‘‘The Service shall have the authority,within the limits of available appropriations,to do all things necessary to carry out theprovisions of this section, including, butwithout being limited to, the authority to—

‘‘(1) make full use of competent personneland organizations outside the Office, publicor private, and form special ad hoc taskforces or make other arrangements when ap-propriate;

‘‘(2) enter into contracts or other arrange-ments as may be necessary for the conductof the work of the Office with any agency orinstrumentality of the United States, withany State, territory, or possession or any po-litical subdivision thereof, or with any per-son, firm, association, corporation, or edu-cational institution, with or without reim-bursement, without performance or otherbonds, and without regard to section 3709 ofthe Revised Statutes (41 U.S.C. 51);

‘‘(3) accept and utilize the services of vol-untary and uncompensated personnel nec-essary for the conduct of the work of theService and provide transportation and sub-sistence as authorized by section 5703 of title5, United States Code, for persons servingwithout compensation; and

‘‘(4) prescribe such rules and regulations asit deems necessary governing the operationand organization of the Service.‘‘SEC. 707. BOARD.

‘‘The Board shall consist of 13 members asfollows—

‘‘(1) 6 Members of the Senate, appointed bythe President pro tempore of the Senate, 3from the majority party and 3 from the mi-nority party;

‘‘(2) 6 Members of the House of Representa-tives appointed by the Speaker of the Houseof Representatives, 3 from the majorityparty and 3 from the minority party; and

‘‘(3) the Director, who shall not be a votingmember.‘‘SEC. 708. REPORT TO CONGRESS.

‘‘The Service shall submit to the Congressan annual report which shall include, but notbe limited to, an evaluation of technologyassessment techniques and identification, in-sofar as may be feasible, of technologicalareas and programs requiring future anal-ysis. The annual report shall be submittednot later than March 15 of each year.‘‘SEC. 709. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriatedto the Service such sums as are necessary tofulfill the requirements of this title.’’.

TITLE XVII—STUDIESSEC. 1701. REGULATORY REVIEWS.

(a) REGULATORY REVIEWS.—Not later thanone year after the date of enactment of thissection and every five years thereafter, eachFederal agency shall review relevant regula-tions and standards to identify—

(1) existing regulations and standards thatact as barriers to—

(A) market entry for emerging energytechnologies (including fuel cells, combinedheat and power, distributed power genera-tion, and small-scale renewable energy), and

(B) market development and expansion forexisting energy technologies (including com-bined heat and power, small-scale renewableenergy, and energy recovery in industrialprocesses), and

(2) actions the agency is taking or couldtake to—

(A) remove barriers to market entry foremerging energy technologies and to marketexpansion for existing technologies,

(B) increase energy efficiency and con-servation, or

(C) encourage the use of new and existingprocesses to meet energy and environmentalgoals.

(b) REPORT TO CONGRESS.—Not later than18 months after the date of enactment of thissection, and every five years thereafter, theDirector of the Office of Science and Tech-nology Policy shall report to the Congress onthe results of the agency reviews conductedunder subsection (a).

(c) CONTENTS OF THE REPORT.—The reportshall—

(1) identify all regulatory barriers to—(A) the development and commercializa-

tion of emerging energy technologies andprocesses, and

(B) the further development and expansionof existing energy conservation technologiesand processes,

(2) actions taken, or proposed to be taken,to remove such barriers, and

(3) recommendations for changes in laws orregulations that may be needed to—

(A) expedite the siting and development ofenergy production and distribution facilities,

(B) encourage the adoption of energy effi-ciency and process improvements,

(C) facilitate the expanded use of existingenergy conservation technologies, and

(D) reduce the environmental impacts ofenergy facilities and processes throughtransparent and flexible compliance meth-ods.

SEC. 1702. ASSESSMENT OF DEPENDENCE OF HA-WAII ON OIL.

(a) STUDY.—Not later than 60 days afterthe enactment of this Act, the Secretary ofEnergy shall initiate a study that assessesthe economic risk posed by the dependenceof Hawaii on oil as the principal source of en-ergy.

(b) SCOPE OF THE STUDY.—The Secretaryshall assess—

(1) the short- and long-term threats to theeconomy of Hawaii posed by insecure supplyand volatile prices;

(2) the impact on availability and cost ofrefined petroleum products if oil-fired elec-tric generation is displaced by other sources;

(3) the feasibility of increasing the con-tribution of renewable sources to the overallenergy requirements of Hawaii; and

(4) the feasibility of using liquid naturalgas as a source of energy to supplement oil.

(c) REPORT.—Not later than 300 days afterthe date of enactment of this section, theSecretary shall prepare, in consultation withappropriate agencies of the State of Hawaii,industry representatives, and citizen groups,and shall submit to Congress a report detail-ing the Secretary’s findings, conclusions,and recommendations. The report shallinclude—

(1) a detailed analysis of the availability,economics, infrastructure needs, and rec-ommendations to increase the contributionof renewable energy sources to the overallenergy requirements of Hawaii; and

(2) a detailed analysis of the use of liquidnatural gas, including—

(A) the availability of supply,(B) economics,(C) environmental and safety consider-

ations,(D) technical limitations,(E) infrastructure and transportation re-

quirements, and(F) siting and facility configurations,

including—(i) onshore and offshore alternatives, and(ii) environmental and safety consider-

ations of both onshore and offshore alter-natives.

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated tothe Secretary of Energy such sums as maybe necessary to carry out the purposes ofthis section.SEC. 1703. STUDY OF SITING AN ELECTRIC

TRANSMISSION SYSTEM ON AMTRAKRIGHT-OF-WAY.

(a) STUDY.—The Secretary of Energy shallcontract with Amtrak to conduct a study ofthe feasibility of building and operating anew electric transmission system on the Am-trak right-of-way in the Northeast Corridor.

(b) SCOPE OF THE STUDY.—The study shallfocus on siting the new system on the Am-trak right-of-way within the NortheasternCorridor between Washington, D.C., and NewRochelle, New York, including the Amtrakright-of-way between Philadelphia, Pennsyl-vania and Harrisburg, Pennsylvania.

(c) CONTENTS OF THE STUDY.—The studyshall consider—

(1) alternative geographic configuration ofa new electronic transmission system on theAmtrak right-of-way;

(2) alternative technologies for the system;(3) the estimated costs of building and op-

erating each alternative;(4) alternative means of financing the sys-

tem;(5) the environmental risks and benefits of

building and operating each alternative aswell as environmental risks and benefits ofbuilding and operating the system on theNortheast Corridor rather than at other lo-cations;

(6) engineering and technological obstaclesto building and operating each alternative;and

CONGRESSIONAL RECORD — SENATES1502 March 5, 2002(7) the extent to which each alternative

would enhance the reliability of the electrictransmission grid and enhance competitionin the sale of electric energy at wholesalewithin the Northeast Corridor.

(d) RECOMMENDATIONS.—The study shallrecommend the optimal geographic configu-ration, the optimal technology, the optimalengineering design, and the optimal meansof financing for the new system from amongthe alternatives considered.

(e) REPORT.—The Secretary of Energy shallsubmit the completed study to the Com-mittee on Energy and Natural Resources ofthe United States Senate and the Committeeon Energy and Commerce of the House ofRepresentatives not later than 270 days afterthe date of enactment of this section.

(f) DEFINITIONS.—For purposes of thissection—

(1) the term ‘‘Amtrak’’ means the NationalRailroad Passenger Corporation establishedunder chapter 243 of title 49, United StatesCode; and

(2) the term ‘‘Northeast Corridor’’ shallhave the meaning given such term under sec-tion 24102(7) of title 49, United States Code.DIVISION G—ENERGY INFRASTRUCTURE

SECURITYTITLE XVIII—CRITICAL ENERGY

INFRASTRUCTURESubtitle A—Department of Energy Programs

SEC. 1801. DEFINITIONS.In this title:(1) CRITICAL ENERGY INFRASTRUCTURE.—(A) IN GENERAL.—The term ‘‘critical energy

infrastructure’’ means a physical or cyber-based system or service for—

(i) the generation, transmission, or dis-tribution of electric energy; or

(ii) the production, refining, or storage ofpetroleum, natural gas, or petroleumproduct—the incapacity or destruction of which wouldhave a debilitating impact on the defense oreconomic security of the United States.

(B) EXCLUSION.—The term shall not includea facility that is licensed by the NuclearRegulatory Commission under section 103 or104 b. of the Atomic Energy Act of 1954 (42U.S.C. 2133 and 2134(b)).

(2) DEPARTMENT; NATIONAL LABORATORY;SECRETARY.—The terms ‘‘Department’’, ‘‘Na-tional Laboratory’’, and ‘‘Secretary’’ havethe meaning given such terms in section1203.SEC. 1802. ROLE OF THE DEPARTMENT OF EN-

ERGY.Section 102 of the Department of Energy

Organization Act (42 U.S.C. 7112) is amendedby adding at the end the following:

‘‘(20) To ensure the safety, reliability, andsecurity of the nation’s energy infrastruc-ture, and to respond to any threat to or dis-ruption of such infrastructure, through ac-tivities including—

‘‘(A) research and development;‘‘(B) financial assistance, technical assist-

ance, and cooperative activities with States,industry, and other interested parties; and

‘‘(C) education and public outreach activi-ties.’’.SEC. 1803. CRITICAL ENERGY INFRASTRUCTURE

PROGRAMS.(a) PROGRAMS.—In addition to the authori-

ties otherwise provided by law (includingsection 1261), the Secretary is authorized toestablish programs of financial, technical, oradministrative assistance to—

(1) enhance the security of critical energyinfrastructure in the United States;

(2) develop and disseminate, in cooperationwith industry, best practices for critical en-ergy infrastructure assurance; and

(3) protect against, mitigate the effect of,and improve the ability to recover from dis-

ruptive incidents affecting critical energyinfrastructure.

(b) REQUIREMENTS.—A program establishedunder this section shall—

(1) be undertaken in consultation with theadvisory committee established under sec-tion 1804;

(2) have available to it the scientific andtechnical resources of the Department, in-cluding resources at a National Laboratory;and

(3) be consistent with any overall Federalplan for national infrastructure security de-veloped by the President or his designee.SEC. 1804. ADVISORY COMMITTEE ON ENERGY IN-

FRASTRUCTURE SECURITY.

(a) ESTABLISHMENT.—The Secretary shallestablish an advisory committee, or utilizean existing advisory committee within theDepartment, to advise the Secretary on poli-cies and programs related to the security ofU.S. energy infrastructure.

(b) BALANCED MEMBERSHIP.—The Secretaryshall ensure that the advisory committee es-tablished or utilized under subsection (a) hasa membership with an appropriate balanceamong the various interests related to en-ergy infrastructure security, including—

(1) scientific and technical experts;(2) industrial managers;(3) worker representatives;(4) insurance companies or organizations;(5) environmental organizations;(6) representatives of State, local, and trib-

al governments; and(7) such other interests as the Secretary

may deem appropriate.(c) EXPENSES.—Members of the advisory

committee established or utilized under sub-section (a) shall serve without compensation,and shall be allowed travel expenses, includ-ing per diem in lieu of subsistence, at ratesauthorized for an employee of an agencyunder subchapter I of chapter 57 of title 5,United States Code, while away from thehome or regular place of business of themember in the performance of the duties ofthe committee.SEC. 1805. BEST PRACTICES AND STANDARDS

FOR ENERGY INFRASTRUCTURE SE-CURITY.

The Secretary, in consultation with theadvisory committee under section 1804, shallenter into appropriate arrangements withone or more standard-setting organizations,or similar organizations, to assist the devel-opment of industry best practices and stand-ards for security related to protecting crit-ical energy infrastructure.

Subtitle B—Department of the InteriorPrograms

SEC. 1811. OUTER CONTINENTAL SHELF ENERGYINFRASTRUCTURE SECURITY.

(a) DEFINITIONS.—In this section:(1) APPROVED STATE PLAN.—The term ‘‘ap-

proved State plan’’ means a State plan ap-proved by the Secretary under subsection(c)(3).

(2) COASTLINE.—The term ‘‘coastline’’ hasthe same meaning as the term ‘‘coast line’’as defined in subsection 2(c) of the Sub-merged Lands Act (43 U.S.C. 1301(c)).

(3) CRITICAL OCS ENERGY INFRASTRUCTUREFACILITY.—The term ‘‘OCS critical energy in-frastructure facility’’ means—

(A) a facility located in an OCS ProductionState or in the waters of such State relatedto the production of oil or gas on the OuterContinental Shelf; or

(B) a related facility located in an OCSProduction State or in the waters of suchState that carries out a public service, trans-portation, or infrastructure activity criticalto the operation of an Outer ContinentalShelf energy infrastructure facility, as de-termined by the Secretary.

(4) DISTANCE.—The term ‘‘distance’’ meansthe minimum great circle distance, meas-ured in statute miles.

(5) LEASED TRACT.—(A) IN GENERAL.—The term ‘‘leased tract’’

means a tract that—(i) is subject to a lease under section 6 or

8 of the Outer Continental Shelf Lands Act(43 U.S.C. 1335, 1337) for the purpose of drill-ing for, developing, and producing oil or nat-ural gas resources; and

(ii) consists of a block, a portion of ablock, a combination of blocks or portions ofblocks, or a combination of portions ofblocks, as—

(I) specified in the lease; and(II) depicted on an outer Continental Shelf

official protraction diagram.(B) EXCLUSION.—The term ‘‘leased tract’’

does not include a tract described in sub-paragraph (A) that is located in a geographicarea subject to a leasing moratorium on Jan-uary 1, 2001, unless the lease was in produc-tion on that date.

(6) OCS POLITICAL SUBDIVISION.—The term‘‘OCS political subdivision’’ means a county,parish, borough or any equivalent subdivi-sion of an OCS Production State all or partof which subdivision lies within the coastalzone (as defined in section 304(1) of theCoastal Zone Management Act of 1972 (16U.S.C. 1453(1)).

(7) OCS PRODUCTION STATE.—The term‘‘OCS Production State’’ means the Stateof—

(A) Alaska;(B) Alabama;(C) California;(D) Florida;(F) Louisiana;(G) Mississippi; or(H) Texas.(8) PRODUCTION.—The term ‘‘production’’

has the meaning given the term in section 2of the Outer Continental Shelf Lands Act (43U.S.C. 1331).

(9) PROGRAM.—The term ‘‘program’’ meansthe Outer Continental Shelf Energy Infra-structure Security Program establishedunder subsection (b).

(10) QUALIFIED OUTER CONTINENTAL SHELFREVENUES.—The term ‘‘qualified Outer Conti-nental Shelf revenues’’ means all amountsreceived by the United States from eachleased tract or portion of a leased tract lyingseaward of the zone defined and governed bysection 8(g) of the Outer Continental ShelfLands Act (43 U.S.C. 1331 et seq.), or lyingwithin such zone but to which section 8(g)does not apply, the geographic center ofwhich lies within a distance of 200 miles fromany part of the coastline of any State, in-cluding bonus bids, rents, royalties (includ-ing payments for royalties taken in kind andsold), net profit share payments, and relatedlate payment interest. Such term does notinclude any revenues from a leased tract orportion of a leased tract that is includedwithin any area of the Outer ContinentalShelf where a moratorium on new leasingwas in effect as of January 1, 2001, unless thelease was issued prior to the establishmentof the moratorium and was in production onJanuary 1, 2001.

(11) SECRETARY.—The term ‘‘Secretary’’means the Secretary of the Interior.

(12) STATE PLAN.—The term ‘‘State plan’’means a State plan described in subsection(b).

(b) ESTABLISHMENT.—The Secretary shallestablish a program, to be known as the‘‘Outer Continental Shelf Energy Infrastruc-ture Security Program,’’ under which theSecretary shall provide funds to OCS Produc-tion States to implement approved Stateplans to provide security against hostile and

CONGRESSIONAL RECORD — SENATE S1503March 5, 2002natural threats to critical OCS energy infra-structure facilities and support of any nec-essary public service or transportation ac-tivities that are needed to maintain the safe-ty and operation of critical energy infra-structure activities. For purposes of this pro-gram, restoration of any coastal wetlandshall be considered to be an activity that se-cures critical OCS energy infrastructure fa-cilities from a natural threat.

(c) STATE PLANS.—(1) INITIAL PLAN.—Not later than 180 days

after the date of enactment of this Act, to beeligible to receive funds under the program,the Governor of an OCS Production Stateshall submit to the Secretary a plan to pro-vide security against hostile and naturalthreats to critical energy infrastructure fa-cilities in the OCS Production State and tosupport any of the necessary public serviceor transportation activities that are neededto maintain the safety and operation of crit-ical energy infrastructure facilities. Suchplan shall include

(A) the name of the State agency that willhave the authority to represent and act forthe State in dealing with the Secretary forpurposes of this section;

(B) a program for the implementation ofthe plan which describes how the amountsprovided under this section will be used;

(C) a contact for each OCS political sub-division and description of how such polit-ical subdivisions will use amounts providedunder this section, including a certificationby the Governor that such uses are con-sistent with the requirements of this section;and

(D) Measures for taking into account otherrelevant Federal resources and programs.

(2) ANNUAL REVIEWS.—Not later than 1 yearafter the date of submission of the plan andannually thereafter, the Governor of an OCSProduction State shall—

(A) review the approved State plan; and(B) submit to the Secretary any revised

State plan resulting from the review.(3) APPROVAL OF PLANS.—(A) IN GENERAL.—In consultation with ap-

propriate Federal security officials and theSecretaries of Commerce and Energy, theSecretary shall—

(i) approve each State plan; or(ii) recommend changes to the State plan.(B) RESUBMISSION OF STATE PLANS.—If the

Secretary recommends changes to a Stateplan under subparagraph (A)(ii), the Gov-ernor of the OCS Production State may re-submit a revised State plan to the Secretaryfor approval.

(4) AVAILABILITY OF PLANS.—The Secretaryshall provide to Congress a copy of each ap-proved State plan.

(5) CONSULTATION AND PUBLIC COMMENT.—(A) CONSULTATION.—The Governor of an

OCS Production State shall develop theState plan in consultation with Federal,State, and local law enforcement and publicsafety officials, industry, Indian tribes, thescientific community, and other persons asappropriate.

(B) PUBLIC COMMENT.—The Governor of anOCS Production State may solicit publiccomments on the State plan to the extentthat the Governor determines to be appro-priate.

(d) ALLOCATION OF AMOUNTS BY THE SEC-RETARY.—The Secretary shall allocate theamounts made available for the purposes ofcarrying out the program provided for bythis section among OCS Production Statesas follows:

(1) 25 percent of the amounts shall be di-vided equally among OCS Production States;and

(2) 75 percent of the amounts shall be di-vided among OCS Production States on thebasis of the proximity of each OCS Produc-

tion State to offshore locations at which oiland gas are being produced.

(e) CALCULATION.—The amount for eachOCS Production State under paragraph (d)(2)shall be calculated based on the ratio ofqualified OCS revenues generated off thecoastline of the OCS Production State to thequalified OCS revenues generated off thecoastlines of all OCS Production States forthe prior five-year period. Where there ismore than one OCS Production State within200 miles of a leased tract, the amount ofeach OCS Production State’s payment underparagraph (d)(2) for such leased tract shall beinversely proportional to the distance be-tween the nearest point on the coastline ofsuch State and the geographic center of eachleased tract or portion of the leased tract (tothe nearest whole mile) that is within 200miles of that coastline, as determined by theSecretary. A leased tract or portion of aleased tract shall be excluded if the tract orportion is located in a geographic area wherea moratorium on new leasing was in effecton January 1, 2001, unless the lease wasissued prior to the establishment of the mor-atorium and was in production on January 1,2001.

(f) PAYMENTS TO OCS POLITICAL SUBDIVI-SIONS.—Thirty-five percent of each OCS Pro-duction State’s allocable share as deter-mined under subsection (e) shall be paid di-rectly to the OCS political subdivisions bythe Secretary based on the following for-mula:

(1) 25 percent shall be allocated based onthe ratio of such OCS political subdivision’spopulation to the population of all OCS po-litical subdivisions in the OCS ProductionState.

(2) 25 percent shall be allocated based onthe ratio of such OCS political subdivision’scoastline miles to the coastline miles of allOCS political subdivisions in the OCS Pro-duction State. For purposes of this sub-section, those OCS political subdivisionswithout coastlines shall be considered tohave a coastline that is the average length ofthe coastlines of all political subdivisions inthe state.

(3) 50 percent shall be allocated based onthe relative distance of such OCS politicalsubdivision from any leased tract used tocalculate that OCS Production State’s allo-cation using ratios that are inversely propor-tional to the distance between the point inthe coastal political subdivision closest tothe geographic center of each leased tract orportion, as determined by the Secretary. Forpurposes of the calculations under this sub-paragraph, a leased tract or portion of aleased tract shall be excluded if the leasedtract or portion is located in a geographicarea where a moratorium on new leasing wasin effect on January 1, 2001, unless the leasewas issued prior to the establishment of themoratorium and was in production on Janu-ary 1, 2001.

(g) FAILURE TO HAVE PLAN APPROVED.—Any amount allocated to an OCS ProductionState or OCS political subdivision but notdisbursed because of a failure to have an ap-proved Plan under this section shall be allo-cated equally by the Secretary among allother OCS Production States in a mannerconsistent with this subsection except thatthe Secretary shall hold in escrow suchamount until the final resolution of any ap-peal regarding the disapproval of a plan sub-mitted under this section. The Secretarymay waive the provisions of this paragraphand hold an OCS Production State’s allo-cable share in escrow if the Secretary deter-mines that such State is making a good faitheffort to develop and submit, or update, aPlan.

(h) USE OF AMOUNTS ALLOCATED BY THESECRETARY.—

(1) IN GENERAL.—Amounts allocated by theSecretary under subsection (d) may be usedonly in accordance with a plan approved pur-suant to subsection (c) for—

(A) activities to secure critical OCS energyinfrastructure facilities from human or nat-ural threats; and

(B) support of any necessary public serviceor transportation activities that are neededto maintain the safety and operation of crit-ical OCS energy infrastructure facilities.

(2) RESTORATION OF COASTAL WETLAND.—For the purpose of subparagraph (1)(A), res-toration of any coastal wetland shall be con-sidered to be an activity that secures criticalOCS energy infrastructure facilities from anatural threat.

(i) FAILURE TO HAVE USE.—Any amount al-located to an OCS political subdivision butnot disbursed because of a failure to have aqualifying use as described in subsection (h)shall be allocated by the Secretary to theOCS Production State in which the OCS po-litical subdivision is located except that theSecretary shall hold in escrow such amountuntil the final resolution of any appeal re-garding the use of the funds.

(j) COMPLIANCE WITH AUTHORIZED USES.—Ifthe Secretary determines that any expendi-ture made by an OCS Production State or anOCS political subdivision is not consistentwith the uses authorized in subsection (h),the Secretary shall not disburse any furtheramounts under this section to that OCS Pro-duction State or OCS political subdivisionuntil the amounts used for the inconsistentexpenditure have been repaid or obligated forauthorized uses.

(k) RULEMAKING.—The Secretary may pro-mulgate such rules and regulations as maybe necessary to carry out the purposes ofthis section, including rules and regulationssetting forth an appropriate process for ap-peals.

(l) AUTHORIZATION OF APPROPRIATIONS.—There are hereby authorized to be appro-priated $450,000,000 for each of the fiscalyears 2003 through 2008 to carry out the pur-poses of this section.

The PRESIDING OFFICER. The Sen-ator from New Mexico.

Mr. BINGAMAN. Madam President, Ibelieve the next order of business is tohave the opening statement of the Sen-ator from Alaska. Unless my colleaguefrom Nevada has business to transact, Isuggest the absence of a quorum untilthe Senator from Alaska arrives.

The PRESIDING OFFICER. Theclerk will call the roll.

The assistant legislative clerk pro-ceeded to call the roll.

Mr. REID. Madam President, I askunanimous consent that the order forthe quorum call be rescinded.

The PRESIDING OFFICER. Withoutobjection, it is so ordered.

The Senator from North Dakota.Mr. DORGAN. Madam President, I in-

quire about the order this afternoon.My understanding is the ranking mem-ber on the Energy Committee intendsto make a presentation. I want to in-quire about the opportunity to makean opening statement on the bill. I in-quire of the majority whip what thecircumstances are.

Mr. REID. If the Senator will yield,the Senator from Alaska is going tospeak for approximately an hour—itmay last a little longer than that—andthereafter the bill will be open foramendment. Or if the Senator would

CONGRESSIONAL RECORD — SENATES1504 March 5, 2002like to come back in an hour or so tomake his opening statement, thatwould be entirely appropriate. If theSenator wishes, we could certainlymake that in the form of a unanimousconsent request that the Senator be al-lowed to speak on the bill.

Mr. DORGAN. I guess I do not under-stand whether we are going to go backand forth. If we are, I ask unanimousconsent that I might be recognized fol-lowing whatever time is taken by Sen-ator MURKOWSKI.

Mr. REID. Does the Senator fromNorth Dakota have some idea as tohow long he wishes to speak?

Mr. DORGAN. Perhaps 20 minutes orso. I do not know what order has beenestablished, if any.

Mr. REID. There has been no orderestablished.

Mr. DORGAN. I ask unanimous con-sent that I might be recognized fol-lowing the opening presentation bySenator MURKOWSKI.

The PRESIDING OFFICER. Is thereobjection?

Mr. DOMENICI. Reserving the rightto object.

Mr. MURKOWSKI. Reserving theright to object.

The PRESIDING OFFICER. The Sen-ator from Alaska.

Mr. MURKOWSKI. I do not intend toobject. I propose we go back and forthon opening statements and, followingthat, pretty much on amendments onthe basis of Members coming to thefloor and being recognized.

Mr. REID. The Senator from NorthDakota still has the floor, but I thinkit would be very good if we could getthe opening statements out of the wayas soon as we could—not limiting any-body as to how long they speak. If ittakes into the evening, fine. We arejust getting started. I am not trying inany way to limit the length of theopening statements on this bill. But Ithink it would be good if we could getthose out of the way now and move tothe amendment process as soon as pos-sible.

Mr. MURKOWSKI. Reserving theright to object, and I shall not, I thinkthat is an appropriate procedure, ifMembers want to work out amongthemselves a time agreement or dis-cuss it, but I don’t think any Membersshould be limited to a time agreementon an opening statement at this time.

Mr. REID. I note the Senator fromNew Mexico is here. It is my under-standing he wished to speak followingthe Senator from North Dakota?

Mr. DOMENICI. If that is the orderwe are in, I ask I be added to that con-sent in that manner.

Mr. REID. I withdraw the previousrequest and ask unanimous consent theSenator from North Dakota, Mr. DOR-GAN, be recognized following the state-ment of the Senator from Alaska, andfollowing the Senator from North Da-kota, Senator DOMENICI will be recog-nized to give his opening statement.

The PRESIDING OFFICER. Withoutobjection, it is so ordered. The Senatorfrom New Mexico.

Mr. MURKOWSKI. Madam President,I suggest the absence of a quorum.

The PRESIDING OFFICER. Theclerk will call the roll.

The assistant legislative clerk pro-ceeded to call the roll.

Mr. MURKOWSKI. Madam. Presi-dent, I ask unanimous consent theorder for the quorum call be rescinded.


Mr. MURKOWSKI. Madam President,first of all, let me compliment my col-league, Senator BINGAMAN, for the sub-mission of what has been a difficultand long process, represented by a lotof staff work on behalf of the majority.I very much appreciate his lengthyopening statement because I think itprovides us with a detailed explanationof what is in the bill.

As you know, the minority has nothad an opportunity to craft this par-ticular bill. I do want to highlightthat, indeed, we do want a bill. Wethink, in response to the President’srequest, that we should proceed withan energy bill, a comprehensive bill,and we believe, since the House hasmet its obligation, it is paramount theSenate meet its obligation and producea comprehensive energy bill.

There are a number of amendmentsbefore us today; I am estimating some-where in the area of 100 or more. As aconsequence, it is fair to say thatmany of these are very contentious.

ANWR has already been mentionedthis morning by Senator JEFF BINGA-MAN; CAFE is going to require an ex-tended debate; the renewable mandatesare, in the opinion of some, not a man-date and, in others, a clear mandate.

The electrical portion of this bill isgoing to take a great deal of time andexplanation for the specific reason thatwe have not had an opportunity in thecommittee of jurisdiction to addressthe process with extended debate, thesubmission of amendments, and theformulation of a consensus. So there isgoing to be a lot of education in thisChamber. There will be a lot of inputfrom lobbyists as a consequence of theunfamiliarity associated with a lot ofthe terminology. It may be possible forPrice-Anderson alone, which representsa necessity for the continued contribu-tion of our nuclear industry, to have agood deal of attention based on thosewho do not want to see the nuclear in-dustry in the United States continue.

There is probably going to be consid-erable discussion over the issue ofYucca Mountain and the question ofwhat to do with our high level wastethat is associated with a number ofyears of accumulation.

It is interesting to note on that par-ticular item that the Federal Govern-ment entered into the sanctity of acontractual relationship with many ofthe States, and certainly the industry,to take this waste in 1998. So basicallythe Federal Government is in breach ofits contractual relationship. Yet theratepayers have been paying into afund of the Federal Government, some-

where in the area of $11 billion over anextended period of time, and the Fed-eral Government has not been able totake the waste. As a consequence, thedamages associated with suits are esti-mated to be somewhere in the area of$60 billion to $70 billion. This seems tobe overlooked in the manner in whichwe address a resolution of Yucca Moun-tain and what to do with it.

It is fair to say that we have dif-ferences of opinion relative to this par-ticular legislation. The chairman ofthe Energy Committee has indicated aterminology that I believe will comeup from time to time that suggests re-newable performance standards.

I think it is fair to say we see that asa clear mandate to achieve a certainpercentage. The question that comes tomind is why, for example, hydro-electric is not considered to be a re-newable. If it is not a renewable, Idon’t know what it is. Is it beauty inthe eyes of the beholder? Is it charityin the eyes of the beholder? It has to besomething, if it is not renewable. Yet itis 10 percent of our energy production.I find that rather inconsistent. But weare going to have a lot of time on thislegislation. So we are going to haveother inconsistencies.

I want to highlight that the UnitedStates has not done a bad job in energyproduction and conservation. We havea chart that I think highlights cer-tainly noteworthy progress because itsuggests that 25 percent of the world’senergy is what we basically use toproduce 30 percent of the world’s econ-omy. What do we do that with? We dothat with about 3 percent of the world’spopulation.

If you look at this chart, it shows indetail that there has been substantialgrowth in efficiency since 1973. If youlook at the chart, it is roughly 18,400Btu’s per dollar of gross domestic prod-uct in 1973. In the year 2000, it is 10,600per dollar of gross domestic product.That is a 42-percent decrease. So we areusing 42 percent less energy to producethe same value today.

I recognize we are all committed toconservation, we are committed togreater utilization of renewables. But Ithink it is important to point out thedirection in which we are going andwhat we have achieved. We haven’tbeen standing still. We haven’t beengoing the other way. We have beenmaking what amounts to substantiveand significant progress. Again, we areusing 42 percent less energy to producethe same value today in this country.

To those who suggest that the worldis coming down, and to the doomsayerswho suggest that somehow we have toabandon our traditional dependence onsources of energy, whether it be coal,whether it be hydro, whether it be oiland gas or nuclear, for the advance-ment of greater shares of energysources such as might be availablefrom wind or energy sources thatmight be available from other alter-natives, I suggest to you there areother charts that show an alarming in-consistency relative to the footprint.

CONGRESSIONAL RECORD — SENATE S1505March 5, 2002Let us look at wind energy, for exam-

ple, We have developed several charts.The one I want to show first is a windfarm that is familiar to many people,and certainly to those who reside inCalifornia and have had occasion todrive to Palm Springs and go throughthe Banning area in California wherethe San Gorgonio wind farm is located.For those who have been there, it isnot necessarily a very pretty sight.You go up through the pass, and yousee this huge area of wind farms. Someof the windmills are moving; some ofthem aren’t moving. How you comparethis wind farm in proportion to thegeneration of oil deserves a few min-utes of examination.

This chart actually shows the 1,500-acre wind farm that is in evidence inCalifornia today. The energy produc-tion is about 800 million kilowatts ofelectricity, which is equivalent to 1,360barrels of oil and a footprint of 1,500acres. I offer that in comparison be-cause one of the lightning rods in thisdiscussion is going to be ANWR. Let usnot kid ourselves. We are talking aboutfootprints, and 2,000 acres of ANWRequals 1 million barrels of oil a day.

We obviously need wind power, butwe also have to face the reality thatthere is a footprint. It is not very pret-ty. Some people say these are nothingmore than Cuisinarts for birds becauselow-flying birds don’t do very wellgoing through this particular type ofexposure.

I am not going to spend a lot of timeon this at this time because we willhave to get into some of the specificsin this legislation.

I see the majority leader is on thefloor. I want to talk a little bit aboutthe process because I take issue withthe process. I have great respect forboth the majority leader as well as thechairman of the Energy and NaturalResources Committee.

What we have tried to do is recognizethat we have an obligation to be re-sponsive to our President. Our Presi-dent has charged us to help him seekways to make our Nation more secure.Our Nation’s energy policy is a criticalfirst step in this enormous challenge.

When we fight for freedom, when weseize the day for democracy, we needenergy. These things cannot be donewithout energy. When we pioneer newtechnology, that saves lives. When weturn on the conveniences that markthe difference between modern life andlife of the past, we turn to energy. It isprobably something we take for grant-ed more than anything around us. Thatis why our work today is so critical.That is partially why the processwhich has gotten us to this point hasbeen, in my opinion, frustrating, it hasbeen embarrassing, and it has not beenin the traditions of the Senate.

I think the process is severely flawedas a consequence of the committee ofjurisdiction having been ordered by themajority leader to no longer take upthe process that ordinarily is appro-priate around here; that is, the bills

are referred to the committees of juris-diction and the committees of jurisdic-tion proceed in an orderly manner—ina manner where amendments are of-fered, discussions take place, and weproceed through the process.

Does the majority leader seek rec-ognition?

Mr. DASCHLE. Madam President, Iwas just going to ask if the Senatorwould yield at the appropriate time.

Mr. MURKOWSKI. I would be happyto yield without losing my right to thefloor.

Mr. DASCHLE. I ask if the distin-guished Senator from Alaska is awarethat the majority leader, when the Re-publicans were in charge, utilized ex-actly the same process the last timethe energy bill the Senator is nowcriticizing came to the floor. I am won-dering if the Senator could clarify thedifference between that set of cir-cumstances and this one.

Mr. MURKOWSKI. I think there is asignificant difference. I think what themajority leader is referring to is hisright to have a contentious bill be in-troduced by the leadership. I have beenaround here 21 years. I do not recallone instance where the committee ofjurisdiction has been deprived of theprocess—not only the committee of ju-risdiction, the Energy and Natural Re-sources Committee, but to some extentthe Environment and Public WorksCommittee, and to some extent I thinkthe Commerce Committee—and, as aconsequence, bring a bill up and bypassthe jurisdiction of the committee. Ithink it is not in the tradition of theSenate. It is certainly not in the tradi-tion of the committee process.

Why the majority leader chose to dothis on the excuse that somehow it wascontentious, to me, fails the true testof this body, of being a deliberativebody that considers debate as part ofthe process, and certainly the value ofeducation from the standpoint of Mem-bers of the committee to proceed.

The majority leader knows as well asI do that the reason it was pulled fromthe committee was that we had thevotes to vote out a certain contentiousamendment, and that was to openANWR. The majority leader simplypulled it. I think if he would refer tocomments made by the chairman of thecommittee, which I would be happy toquote later on in the debate, he wouldsee that the chairman of the com-mittee didn’t have anything to do withit. It was simply pulled by the leader.The leadership said they were going totake it over, and that is the way it was.

Mr. DASCHLE. Madam President,will the Senator yield for one lasttime?

Mr. MURKOWSKI. I am happy toyield.

Mr. DASCHLE. I do not mean to in-terrupt his presentation. I know he hasan opening statement. It is not my in-tention to debate him.

I ask unanimous consent that therebe printed in the RECORD the documentshowing the sequence of events begin-ning on May 16, of the year 2000.

There being no objection, the mate-rial was ordered to be printed in theRECORD, as follows:S. 2557—BILL SUMMARY AND STATUS FOR THE

106TH CONGRESS

Sponsor: Senator Lott, Trent (introduced5/16/2000).

Latest Major Action: 10/31/2000 Senate flooractions: Motion to proceed to considerationof measure made in Senate (consideration:CR S11417).

Title: A bill to protect the energy securityof the United States and decrease America’sdependency on foreign oil sources to 50 per-cent by the Year 2010 by enhancing the use ofrenewable energy resources, conserving en-ergy resources, improving energy effi-ciencies, and increasing domestic energysupplies, mitigating the effect of increases inenergy prices on the American consumer, in-cluding the poor and the elderly, and forother purposes.

Titles(s): (italics indicate a title for a portionof a bill).

Popular Title(s): Oil Dependency on For-eign Resources bill (identified by CRS); En-ergy Security Act (identified by CRS).

Short Title(s) as Introduced: National En-ergy Security Act of 2000; Marginal Well Preser-vation Act of 2000; Frontier Exploration and De-velopment Incentives Act of 2000; Federal Oiland Gas Lease Management Improvement Act of2000; Arctic Coastal Plain Domestic Energy Se-curity Act of 2000.

Official Title as Introduced: A bill to pro-tect the energy security of the United Statesand decrease America’s dependency on for-eign oil sources to 50 percent by the Year2010 by enhancing the use of renewable en-ergy resources, conserving energy resources,improving energy efficiencies, and increasingdomestic energy supplies, mitigating the ef-fect of increases in energy prices on theAmerican consumer, including the poor andthe elderly, and for other purposes.

Status: (dates in italics indicate Senate ac-tions). See also: CQ Custom BillTrack Report

5/16/2000: Introduced in the Senate. Readthe first time. Placed on Senate LegislativeCalendar under Read the First Time.

5/17/2000: Read the second time. Placed onSenate Legislative Calendar under GeneralOrders. Calendar No. 552.

6/15/2000: Committee on Energy and Nat-ural Resources. Hearings held. Hearingsprinted: S. Hrg. 106–746

9/22/2000: Motion to proceed to consider-ation of measure made in Senate (consider-ation: CR S9029).

9/25/2000: Motion to proceed in consideredin Senate (consideration: CR S9137).

9/27/2000: Motion to proceed to consider-ation of measure withdrawn in Senate (con-sideration: CR S9375).


10/2/2000: Motion to proceed considered inSenate (consideration: CR S9572).

10/6/2000: Motion to proceed considered inSenate (consideration: CR S10039–10040).

10/19/2000: Motion to proceed considerationof measure withdrawn in Senate (consider-ation: CR S10769).






CONGRESSIONAL RECORD — SENATES1506 March 5, 200210/30/2000: Motion to proceed to consider-

ation of measure made in Senate (consider-ation: CR S11378).



Mr. DASCHLE. Madam President, Isay for the RECORD that the majorityleader at that time, Senator LOTT, in-troduced an energy bill outside of thecommittee. It was read the first timeand was placed on the Senate Legisla-tive Calendar under ‘‘Read the FirstTime’’ on May 16. On May 17, the billwas read the second time. And then onSeptember 22 of the year 2000, the ma-jority leader made a motion to pro-ceed. None of the activity had takenplace in committee, except for onehearing. I think the Senator from NewMexico has had multiple hearings onenergy and on the bill over the courseof the last many months. But this isexactly what our Republican col-leagues did in May and September ofthe year 2000.

So I find it a little inconsistent forthe Senator to criticize our efforts tobring a bill to the floor this year whenhis party and his leadership did exactlythe same thing in May and Septemberof the year 2000.

Again, I thank the Senator for yield-ing.

Mr. MURKOWSKI. Madam President,let me respond to the majority leaderbecause I think we should pursue this alittle bit, because the traditions ofSenate procedure are very much inplay.

While I agree that bills have beenbrought to the floor in accordance withSenate rules, I completely disagree theRepublicans brought bills to the floorwhile violating the Senate rules. Aslong as I was committee chairmanunder Senator Dole and Senator LOTT,I can never recall of one instance wherethe majority leader ordered me—or-dered me—to stop the process of mark-ing up a bill and shut down the stand-ing committee of the U.S. Senate.

And Senator DASCHLE, that is exactlywhat you did on October 9th of lastyear. You ordered the Senate energycommittee to suspend markup of theenergy bill. As a result, the committeehas not held a legislative markup sinceAugust of last year out of fear that wewould want to bring up amendmentsregarding energy, because you knew wehad the votes to pass them out.

Mr. DASCHLE. Will the Senatoryield?

Mr. MURKOWSKI. I would like tofinish my statement. I will be happy toyield at the conclusion of my state-ment.

I am sure those on the other side ofthe aisle recognize that the StandingRules of the Senate require commit-tees to meet regularly to conduct busi-ness. And I am not aware of any unani-mous consent request asking the Sen-ate Energy and Natural ResourcesCommittee to be exempt from the rules

of the Senate. So I think the compari-son of what Republicans and whatDemocrats did is completely different.

Let me refer the Senator to—before Iyield, and I will yield—to a release thatcame out of Senator BINGAMAN’s office.This came out October 9. I quote:

At the request of Senate Majority LeaderTom Daschle, Senate Energy & Natural Re-sources Committee Chairman Jeff Bingamantoday suspended any further mark-up of en-ergy legislation for this session of Congress.Instead, the Chairman will propose com-prehensive and balanced energy legislationthat can be added by the Majority Leader tothe Senate Calendar for potential actionprior to adjournment.

I am happy to yield to the majorityleader, without losing my right to thefloor.

Mr. DASCHLE. Madam President, Ihope the distinguished Senator fromAlaska has more documentation than apress release that will allow him tomake the assertion he has just made. Ido not order my chairmen to do any-thing. I consult with them. I talk withthem. But I think the Senator fromNew Mexico, who is on the floor, canattest to that fact.

There was no ordering here. Therewas plenty of consultation, just as I amsure there was some consultation withthe Senator from Alaska when SenatorLOTT chose to bring the energy bill tothe floor in May of the year 2000. Idoubt very much that he ordered Sen-ator MURKOWSKI or anybody else tocomply with his wishes. I am sure heconsulted. That is exactly what we did.

So I hope the Senator has some docu-mentation to support his assertion be-cause that is quite a charge. I will saythat there was ample consultation, notonly with the Senator from New Mex-ico but many other Senators who alsohad jurisdiction.

Nine different committees have hadsome jurisdictional role to play withregard to the completion and theprogress on this legislation—nine com-mittees. To take up this bill, in se-quence with each of the nine commit-tees, or even simultaneously, for thatmatter, would be quite a legislative un-dertaking.

So we have worked diligently tocome up with a working draft that wehave shared with our Republican col-leagues. But to assert that I orderedanybody to do something is, I think,not only an error but is a disservice tothe process that we have been engagedin.

I thank the Senator again for yield-ing.

Mr. BINGAMAN. Madam President,could I also respond to——

Mr. MURKOWSKI. If I may, beforethe majority leader leaves, tell himthat I very much appreciate that wehave had this dialog because I think ittruly represents a departure from thecommittee norm that I certainly havelearned to expect around here. And thefact that the majority leader has seenfit to identify that the Republicanshave done it, therefore, it is all right—or the implication of that—I think is

not necessarily applicable to good leg-islation or a process.

I again would demur, because havingbeen on the Energy Committee for alittle over 21 years, somewhere between21 and 22—I have never, never had a sit-uation where the majority leader hastaken, if you will, an action, either di-rect or through the chairman, whichwould absolve the committee from itsfunction.

The fact is, we have not had—and Ithink the majority leader can ask anymember of the committee, at least inthe minority, as to whether or not wehave had any significant input in thislegislation. We have not. We have hothad any markups or any opportunityfor any amendments. And I think themajority leader would have to ac-knowledge that because that is factual.

It was rather curious at the time thiswas done. It was shortly after we lostcontrol of the U.S. Senate. It wasshortly after it became apparent thatwe had the votes to get out an amend-ment that would include opening upANWR. It was clear that we had thevotes to do it.

Then the majority leader has left usin this quandary where he stated thateven if you do have the votes—and itwould be a 60-vote point of order on acloture—why, we cannot win becausehe will pull the bill down. I think thatkind of an approach to the Democraticprocess around here is a bit incon-sistent with tradition.

Mr. DASCHLE. If the Senator willyield one last time, I know SenatorBINGAMAN has been patiently waitingto be able to register his own com-ments here.

Let me just say, it is just not accu-rate for the Senator from Alaska to as-sert that this is unprecedented. That isthe word he used; this was ‘‘unprece-dented.’’ As I said for the RECORD—it isnow part of the RECORD—this very ac-tion was taken by the majority leaderin May and September of the year2000—exactly the same.

So I would just make sure that ourcolleagues are aware, this is not un-precedented. It has happened on many,many occasions, involving many, manyissues and many committees.

I think we ought to get on to the sub-stantive issues, and put this proceduralissue to rest once and for all. We havea lot of important substantive debatesin store. I look forward to havingthose. But I do hope we can clarify theRECORD in this regard and move on tomore substantive questions.

Again, I thank the Senator for yield-ing.

Mr. MURKOWSKI. It is isn’t a mat-ter of who is going to have the lastword. The majority leader should havethe last word. But, on the other hand,this committee was requested to stopmarkup, and that is a fact. And I donot think it can be colored any otherway by the majority leader.

Mr. BINGAMAN. Mr. President, mayI clarify, since I have been quoted, atleast?

CONGRESSIONAL RECORD — SENATE S1507March 5, 2002The PRESIDING OFFICER (Mr.

JOHNSON). The Senator from New Mex-ico.

Mr. BINGAMAN. Mr. President, sinceI have been quoted, or a press releasehas from my office, the decision to ter-minate the markup of any legislationon energy was made by me after con-sultation with the majority leader be-cause it was a joint decision by us thatthe best way to get a bill to the Senatefloor, which reflected the policies thatwe agreed made sense for the country,was to pursue that approach.

As the majority leader has pointedout, that is exactly the approach thatSenator LOTT used when he was major-ity leader.

As far as the action we have taken inthe Senate Energy Committee, I thinkthe Senator from Alaska will acknowl-edge that we have had a series of hear-ings. We have had various confirmationhearings. I have approached the Sen-ator from Alaska several times in thelast several months to see whether ornot we could proceed to consider legis-lation without having controversial en-ergy bill amendments added to thatlegislation. I was informed we couldnot.

We have held off on considering thoseother nonrelated pieces of legislation.We have worked hard to accommodatethe majority and to accommodate theadministration in getting all of theirnominees approved. We have workedhard to have hearings that were of in-terest to members of the committee.And we intend to continue doing so.

Frankly, I am very proud of the prod-uct we are bringing to the Senate forconsideration today. It is a good bill. Itdoes reflect many proposals that camefrom the Republican side. We workedhard with Members from the Repub-lican side to perfect provisions in thisbill. It has not been in an officialmarkup. But just as we have workedwith Democratic Members to perfectprovisions in the bill, we worked withRepublican Members to perfect provi-sions in the bill, and the same with theadministration. This is a combined ef-fort. I feel very good about it.

I hope we can get on with a discus-sion of the bill, with consideration ofamendments, to the extent that Sen-ators have amendments. I know thereare many. That is exactly what this pe-riod on the Senate floor is devoted to.

I know the Senator from Alaska hasbeen anxious to get a debate on theSenate floor and anxious to get an op-portunity to offer his amendments. Hehas that time. He has that opportunity.I hope we will use it.

I yield the floor.Mr. MURKOWSKI. I thank my friend

for his comments. I, too, wish to get onwith my opening statement.

We have to call a spade a spadearound here for a change. I hope thechairman of the Energy Committeewould recognize the reality and ac-knowledge that indeed the reason wecould not agree on proceeding withinthe committee on various amendments

is because we could only agree to it ifwe didn’t offer an amendment to putANWR in the package. If I am wrongon that, I hope Senator BINGAMAN willcorrect me. That is clearly my under-standing. The realization was that thevotes were there to vote it out of com-mittee, and they didn’t want to have avote in committee. That is a rationale.I think we should quit kidding our-selves.

I didn’t read all of Senator BINGA-MAN’s press release, but I ask unani-mous consent that it be printed in theRECORD.

There being no objection, the mate-rial was ordered to be printed in theRECORD, as follows:ENERGY COMMITTEE SUSPENDS MARK-UPS;

WILL PROPOSE COMPREHENSIVE AND BAL-ANCED ENERGY LEGISLATION TO MAJORITYLEADER

At the request of Senate Majority LeaderTom Daschle, Senate Energy & Natural Re-sources Committee Chairman Jeff Bingamantoday suspended any further mark-up of en-ergy legislation for this session of Congress.Instead, the Chairman will propose com-prehensive and balanced energy legislationthat can be added by the Majority Leader tothe Senate Calendar for potential actionprior to adjournment.

Noted Bingaman, It has became increas-ingly clear to the Majority Leader and to methat much of what we are doing in our com-mittee is starting to encroach on the juris-dictions of many other committees. Addi-tionally, with the few weeks remaining inthis session, it is now obvious to all how dif-ficult it is going to be for these various com-mittees to finish their work on energy-re-lated provisions.

Finally, and perhaps most importantly,Bingaman said, the Senate’s leadership sin-cerely wants to avoid quarrelsome, divisivevotes in committee. At a time when Ameri-cans all over the world are pulling togetherwith a sense of oneness and purpose, Con-gress has an obligation at the moment toavoid those contentious issues that divide,rather than unite, us.

Bingaman will continue to consult andbuild consensus with members of his com-mittee, with other committee chairs andwith other Senators as he finalizes a pro-posal to present to the Majority Leader.

Mr. MURKOWSKI. I have the great-est respect for my friend. But to sug-gest that somehow what has happenedis the everyday order of business in theSenate, where legislation that is con-tentious is pulled away from com-mittee, let me quote what came fromSenator BINGAMAN’s press release,again, on October 9. It says:

Finally, and perhaps more importantly,Bingaman said, the Senate’s leadership sin-cerely wants to avoid quarrelsome, divisivevotes in committee.

What is wrong with divisive votes incommittee? They occur all the timearound here. It is a difference of opin-ion. It is voting out and prevailing ornot. Here they say they want to avoidquarrelsome, divisive votes in com-mittee.

Furthermore:At a time when Americans all over the

world are pulling together with a sense ofoneness and purpose, Congress has an obliga-tion at the moment to avoid those conten-tious issues that divide, rather than unite us.

I can tell my colleagues, by takingthe authority away from the com-mittee, it certainly did not unite us.

I will have a little more to say aboutthis process because it is importantthat the American public understandsit. We worked on a bill last year. Weworked with at that time the minority.We had a lot of hearings. But it was noton this legislation.

I am not suggesting there aren’t goodprovisions in this bill. The point is, theEnergy Committee has not had a legis-lative business meeting since August 1of last year, despite the Senate andcommittee rules requiring a businessmeeting at least once a month. We areeither in violation of the rules or weare not. The fact that a bipartisan ma-jority of the Energy Committee wouldhave brought to the floor a comprehen-sive energy bill with the chairman’s re-port, there is no question the majorityleader was free to incorporate it or ig-nore it, but at least the Senate wouldhave had the benefit of our views.

These are the facts. You cannotwhitewash it any other way. The ter-minology the majority leader was crit-ical of that I attributed to him, that hehad ‘‘ordered’’ or ‘‘directed’’ or ‘‘it wasagreed to,’’ nevertheless, it happened.Things don’t happen around here in avacuum. We are all aware of that.

The process is flawed. I am glad themajority leader was here so we couldhave a discussion.

This is not a representative bill.Somehow the prevailing majority hasforced the Senate to consider thismeasure, again, without the benefit ofcommittee deliberation and action. Asa consequence, he has made the taskmuch harder of moving this bill. It ismuch more complicated than it had tobe because it has not gone through thecommittee process. To say, well, Sen-ator LOTT did it that way, I can tell mycolleagues, again, I know of no in-stance where the committee of juris-diction was removed from its obliga-tion to address the issue before it.

Difficult and divisive issues thatcould and should have been worked outin committee are going to be right herein the Senate Chamber.

I am going to work towards a bill.That was the first thing I indicated inmy opening statement. I mean that.We want a bill. We want a comprehen-sive bill. We want a good bill. But wewant some input in it. So what we willhave to do is have our input by amend-ment. We don’t think that should havebeen necessary but, clearly, that is theonly choice we have. As a consequence,we are going to begin a long process.

I suppose I will be subject to some ex-amination, but I think the majorityleader said, as far as he was concerned,a portion of the bill was dead—ANWR,dead. That hardly represents anythingmore than a guess. He may be right.But if it is dead, TOM DASCHLE killedit. Make no mistake about that.

I hope when Members recognize theseverity of our dependence on importedoil, they will recognize that in 1973 or

CONGRESSIONAL RECORD — SENATES1508 March 5, 2002thereabouts, when we had the Arab oilembargo, when we had gas lines aroundthe block—and some people are oldenough to remember that—the publicwas outraged and indignant, that wasduring the Yom Kippur War. We were37-percent dependent on oil at thattime. We were blaming everybody. TheGovernment was lashing out: Howcould this happen?

Now we are over 58-percent depend-ent. When we talk about doing some-thing about it, we better be specific.

We could have had, in the committeeprocess, hundreds of amendments thatcould and should have been dealt within the committee. Now they are goingto take time on the floor away fromour deliberations because the excuse Ihave heard so far is they are conten-tious. I don’t know what isn’t conten-tious around here. We all respect eachother’s opinions. But we are entitled toexpress those opinions in a process as-sociated with the committee function.

As far as I am concerned, the major-ity leader took control over the com-mittee process. He said: We are goingto have 60 votes because there is goingto be a filibuster.

I have never heard or seen that kindof an action taken before. Maybe some-one will enlighten me as to when theauthorities have been taken from thecommittee. Every committee chair-man, whether Republican or Democrat,should remember this because it is amilestone in inconsistency—a mile-stone, in my opinion, not in the besttradition of the Senate.

Now, we have heard our majorityleader lay the responsibility aroundhere, but I think the fault rests solelywith his judgment. I don’t think thereis any question about it, and I doubtvery much if anyone would disagreewith me, Republican or Democratalike.

But even with the additional hurdlesnow being put before us, I think we canmove a bill off the floor. This Nationneeds an energy bill, one that is rootedin findings—the finding of new alter-native energy sources, boosting effi-ciency, and helping us use less energy.This is something with which Repub-licans agree. But efficiency and alter-natives are simply a two-legged stool,and they are not enough. Alone, theyare not going to close the gap betweenenergy supply and demand in this Na-tion.

We must also seek to safely increaseour domestic energy resources, and wemust do it in a way that protects ourenvironment. How do we do that? Wedo that through technology. Make nomistake, we are the most efficienteconomy in the world, and we are get-ting better. I have indicated on thischart, again, the recognition of justhow well we are doing. As the chart in-dicates, we are doing pretty well. Thefact that we have been able to increase,if you will, our energy efficiency by 40-some-odd percent I think is evidence ofthe advancements we have made.

Now, it was approximately 42 per-cent. As I indicated, this chart shows

growth in efficiency since 1973, and itshows a 42-percent decrease, if you will.That is a decrease in our utilization ofenergy. Again, if 3 percent of the popu-lation of the United States utilizes 25percent of the world’s energy and pro-duces 30 percent of the world’s econ-omy, that is not a bad start. So we areusing 42 percent less energy to producethe same value today. That is whatthat chart shows.

Senator BINGAMAN and I have a lot ofcharts here, so we will probably betrading charts before this process isover. What we have done, to a degree—and we can do better—is we have prov-en we can balance our conservation andenvironmental protection with in-creased domestic energy production.For that reason, I refuse to take partin the fable being put forth by thosewho are running the so-called spin ma-chines around here that say the Nationneeds to make a choice. Some say weneed to make a choice between usingthe energy technologies of today—coal,oil, gas, hydro, nuclear—or using en-ergy technologies of tomorrow.

Now, some would discuss this as en-ergy vis-a-vis the environment. I don’tthink that is the issue. Some say thisis about today and tomorrow. I don’tthink that is the issue. Some insistwhatever solutions we propose, theycan’t be done safely today. I don’tthink that is the issue. The logic sellsthe American worker and American in-genuity far too short. We need to strivefor new technologies and diversify ourenergy supply. We need to conservemore and become more energy effi-cient.

If this bill passes today, we will notbe driving hydrogen cars tomorrow, inspite of the fact that many have sug-gested, ‘‘Why can’t we?’’ It is simply amatter that we don’t have the tech-nology. We will not be powered by solaror wind energy by morning. We cannotsimply shut down the economy of thisNation and put our national securityon hold for a generation or more whilewe work on new technologies. What weare going to have to do is build abridge. I think most people would agreethat we need to build a bridge throughtechnology to assess, if you will, thegoals of tomorrow. It is not going tocome just by setting a standard andmaking it become effective in 12 to 15years. Most of us are not going to bearound to be held accountable in 12 to15 years for a goal set today.

We have seen what has happenedsince 1992, when we set certain stand-ards around here on mileage for utiliza-tion of nonpetroleum-based utilizationin Government vehicles. We haven’tachieved that, for the most part. Wehave been in violation of the agree-ment. Whom do you blame? The Fed-eral Government. What is achievable,and at what cost? How much are youwilling to spend? These are all legiti-mate considerations that I think haveto be dealt with in an open debate andin a manner in which we can get thebest experts to advise us on just whatcourse of action to take.

Our energy comes from many sourcestoday—coal, oil, natural gas, hydro,nuclear, and so forth. We must,through the technology, explore newand highly, perhaps, unachievable tech-nologies today, but they might beachievable tomorrow, because they canreduce our consumption in the comingyears.

Recognize, Mr. President, we have 200million cars on the road. Oil is going tocontinue to be the primary ingredientin surface transportation needs for theforeseeable future—even if they get 30miles to the gallon. A lot of people re-flect on all sources of energy that wehave in this country and say: Aren’t wefortunate? We have hydro and nuclear,and we have plenty of oil and gas, anda good deal of it we import. Neverthe-less, we have it, and we have tech-nology for wind and solar. But make nomistake about it, for transportation,the world is beholden to oil. We don’tfly in and out of Washington on hotair—although there is a lot of it here.So whether it be on the ships, trains,trucks, cars, or airplanes, it is oil.

The world is in the same position.Transportation is dependent on oil. Sowe have to reflect on reality and recog-nize that, as we become more depend-ent on oil, it is from overseas. We im-port that oil, and we become more vul-nerable. As I indicated, in 1973 we were37 percent dependent on imported oil;today, that is magnified to 58 percent.What about nuclear? We have over 100nuclear plants spread across the coun-try. They provide nearly 20 percent ofthe energy produced in this Nation. Wesee that new electric plants are beingbuilt today that run on natural gas.

The United States is the ‘‘Saudi Ara-bia of coal.’’ We have West Virginiacoal. We have Pennsylvania coal. Wehave coal in Alaska. We have a supplyof coal that would last for centuries.We can use these coal resources in acleaner, more efficient way, and wehave to do that. We can do that. It isjust a matter of applying our tech-nology.

Now, all this, to a degree, relates tothe economy of this country. We aretalking about jobs. It is pretty simple.Development of our domestic re-sources. I am talking about resourcesin the United States. That is going tomean thousands and thousands of jobsacross our Nation. I am talking aboutpipe, new software, building new dou-ble-bottom, double-hull supertankers,which we are currently building inCalifornia and in Mississippi. These areU.S. ships—the largest concentrationof tonnage under the U.S. flag in ourmerchant marine service. These aremandated by law because the carriageof goods between two American portshas to be in a U.S. flag vessel, with aU.S. crew, built in a U.S. yard.

So these are big job issues, Mr. Presi-dent. That oil that moves from myState of Alaska doesn’t go to Japan.There hasn’t been a drop of oil that hasmoved outside the United States sincea year ago last April. What did go was

CONGRESSIONAL RECORD — SENATE S1509March 5, 2002a very small amount that was excess tothe west coast. There is no excess oilgoing from the west coast. We are im-porting oil from Saudi Arabia, as wellas other areas, and bringing oil downfrom Alaska. My point is very clear:We are becoming more dependent onimported oil, and as we do so, we areexporting our dollars and our jobs.What is the logic of that?

The development of domestic re-sources would mean thousands andthousands of jobs across the country.These are good paying jobs. These arenot service jobs flipping hamburgers ina McDonald’s. As I indicated, ships willbe built by high-skilled workers. Thiswill help turn around our economy andget us out of this rather soft recession.

Somebody put together a figure—andI do not know how correct it is—thatwe have lost some 700,000 jobs sinceSeptember 11. Whatever the case, it istime to put American workers back towork. We can do it, because we havebefore us some opportunities toproduce more energy in the UnitedStates.

Let’s talk about some of the groupsthat are supporting proposals to de-velop more domestic energy in theUnited States. The Teamsters, the Sea-farers International Union, the Mari-time Laborers Union, the OperatingEngineers Union, the Plumbers andPipefitters Union, the Carpenters andJoiners, Building Trades, dozens oflabor groups representing thousands ofworkers are behind our efforts for acomprehensive energy bill that createsnothing more than jobs in this country.

I suspect every Member of this bodyis a little concerned about the creationof jobs, the maintenance of jobs, theswitch we have seen, as we have seenmore jobs in the service industry butless higher paying blue collar jobs.

Dozens of labor groups representingthousands of workers are behind our ef-forts for a comprehensive energy planthat creates jobs, that develops energysources at home. For this reason, I amgoing to oppose any amendment or un-derlying provision that sacrificesAmerican jobs for political expediency.I am not interested in political expedi-ency. I have been in this body for over21 years.

I also reject the underlying premiseof the majority leader, the senior Sen-ator from Connecticut, and the juniorSenator from Massachusetts—who Ihope will join us in this debate. Thosewho oppose domestic resource develop-ment do not believe that Americanworkers and American technology candevelop our natural resources whilefully protecting the environment. Wehave that capability, there is no ques-tion about it.

Some Members may choose to rely onsources such as Saddam Hussein orothers for our supplies, but I will standwith the American workers to developthese new technologies. Unlike thosewho oppose nuclear, hydro, naturalgas, and oil, I have faith and confidencein this Nation and the men and women

who drive it. We need an energy billthat provides today’s resources tomove us to tomorrow’s promises, notthe shallow measures before us withempty promises that simply export thewealth, jeopardizes the national secu-rity, and shifts U.S. jobs overseas.

Obviously, we have some differencesof opinion with America’s environ-mental community. They are opposedto various parts of this bill, particu-larly those parts that suggest we candevelop our domestic resources athome; more particularly our oil. Theyhave no scientific evidence to suggestthat we cannot. None whatsoever. Wewill have an opportunity to get intothat a little further in the debate.

Let’s talk a little bit about the billbefore us, the bill that was introducedby the majority leader—call it theDaschle bill. As far as I am concerned,it is pretty hard to identify new jobproduction associated with that legis-lation. We have already discussed thatwe have not had hearings, we have nothad input, and the excuse has been:Senator LOTT did it; therefore, it is allright. I think I have already made thatpoint, and that point is very explicit.We have never had responsibilitypulled from the committee simply be-cause the votes in the committee weresupportive of an amendment thatwould increase domestic production.

Since we have not had the benefit ofcommittee debate and approval, I wantto delve into this bill for a closer look.What does this bill do? Even though wehave only seen it for a very short pe-riod of time, the legislation appears toauthorize some 60 new Federal pro-grams, many of which already exist atthe Department of Energy or else-where. We can go into those.

We are told there are some 32 newstudies on various impacts of energypolicy, but studies are what one callsfor when you are not ready to act. Weare ready to act. We need an energybill now. We need to make decisionsnow. There is nearly $49 billion in newspending authorizations over the next 5years. In a time of fiscal constraints,the level of spending called for in thisbill, if fully funded, is well above thebaseline estimates for these programs.This elevated level of spending willtake precious funds away from otherspending priorities, such as homelanddefense, education, and health care.

As a matter of energy policy, theseauthorizations have questionablevalue. Unrealistic authorizations, inmy opinion, are nothing more thanempty promises. So we have waited for6 months for the new energy proposal.Yet it is not much different than theone offered nearly a year ago.

What is different now is that 700,000Americans are out of work in thiscountry, a recession, I remind you,that was the direct result of one thing:Energy price increases that we experi-enced in 1999 and 2000, all for a lack ofan energy policy.

I will go through the titles verybriefly. Title X, XI, and XIII of this bill

simply rehash other Senators’ pro-posals to address the risk of climatechange, and there are so many con-flicts among these provisions that willneed to be sorted out that is going totake a lot of time. Title XII, XIV, XV,energy R&D and workforce training isthe work product of the only markupheld before the Energy Committee.What does that say for the committeeprocess? I know that other committeeswere affected.

In addition, the committee hadagreed this provision needed to be re-visited before we completed our mark-up.

Title XVI, technology assessment:Like so many other parts of this bill, itis a title for which no legislative hear-ings have been held, no scrutiny what-soever. The scrutiny on it is obviouslylacking.

Title I through IX are largely thesame as in Senator Bingaman’s origi-nal bill, I might add.

Title XVIII, critical energy infra-structure, was the very same title thatprompted the Democratic leader andthe Energy Committee chairman tosuspend committee action in the firstplace. I ask, what is new, what is dif-ferent about this proposal to merit de-laying discussion on these importantissues for the past several months?

On a positive note—I am sure my col-leagues wonder if there are any posi-tive notes in this bill; I am pleased tosay we do. I do not suggest there are noprovisions of the pending legislationthat have redeeming social value.There are several. There are provisionsthat we have generally agreed on thatcould have been refined and supportedalmost unanimously in committee hadwe been allowed to meet.

Among those provisions are title I,regional coordination of energy poli-cies and planning for energy infrastruc-ture; title II, PUCHA and PURPA re-peal for electricity and possiblychanges in other provisions in this titlewith minor changes; title III, hydro re-licensing. The proposal in this bill re-flects part but not all of an emergingconsensus on how to balance powerneeds with environmental concerns.And title IV, Indian energy programs. Ionly wish the Committee on Indian Af-fairs had been allowed to hold hearingsto consider these programs in some de-tail.

I happen to be a member of that com-mittee. I am a member of the FinanceCommittee. We still have not reportedout the tax aspects associated withthis bill.

So we have title V, the Price-Ander-son, both the chairman of the EnergyCommittee and I proposed full reviewof Price-Anderson for both the DOEcontractors and the NRC licensees.Why NRC licensees are not included, Iam not sure, but hopefully we will findthat out in our debate. Title VI, perma-nent authority for the SPR and a re-lated study of SPR capacity are areasof broad agreement.

Title VII, higher standards for Fed-eral fleet fuel economy proposed comes

CONGRESSIONAL RECORD — SENATES1510 March 5, 2002from our bipartisan energy proposaland other alternative fuel provisionsthat are basically taken from H.R. 4,the House bill, and the renewablemotor fuel provisions for ethanol arethe same as those that I proposed lastyear in a draft revision of our bipar-tisan bill.

We agree on much of title IX, energyefficiency, with one large exception forthe 13 SEER air conditioning standardsrejected by the administration lastyear.

There is agreement in principle butnot on specific spending levels or pro-gram structures in title X, onward,with respect to climate change and en-ergy R&D. Many of the subtle dif-ferences of opinion throughout this billcould have been easily addressed in acommittee markup and not on the Sen-ate floor, but we are left with that re-ality for reasons we have already ar-ticulated, although we have differencesof opinion on those, and I respect that.So I regret we were deprived of thechance to proceed in committee, fornow we will have to deal with thesechanges on the floor, which will makeour task harder and longer.

Since I commented on the areas ofagreement, let me comment on theissues of disagreement because this iswhere we are going to be spending a lotof time.

We are talking about issues of agree-ment, and despite the broad agreementon the majority of issues contained inthis bill, there are some other provi-sions which we have great disagree-ment on. I want to address some ofthose today. I think we should havebeen able to provide the Senate with arecommendation and some sense of leg-islative history, and we should havebeen able to better define the debate,but because of the reality that thecommittee has not had an opportunityto meet, why we have no other choicebut to proceed.

I think it is important that particu-larly the minority that we are in nowreflect on what our intention was so wecould communicate that to the major-ity. So we developed some principles onone of the more contentious parts ofthe bill, and that was the electricityportion.

Basically, what Republicans, as a mi-nority, stand for in our caucus is an ob-ligation to, first, protect consumers.

That would give the Federal TradeCommission precautions and protec-tions without preempting the tradi-tional authority of the States. We feelvery strongly about that. We are talk-ing about trying to streamline the reg-ulatory process, eliminate some of theobsolete statutes like PUHCA andPURPA, and limit Federal micro-management.

One has to wonder, if we reflect onthe Enron situation, if we had what isin this bill, could there have been anorderly transition of the market work-ing? Because what happened withEnron clearly was: The market worked.There were no interruptions of power.

There were no price increases. Onewonders if we had to get permission ifone company whose trading suddenlyfalls to its knees can have an orderly,innovative market work. Well, maybewe can get to that, but I personally ama little uncomfortable with too muchFederal micromanagement.

We also stand for enhancing inter-state transmission while preservingState authority through the inter-connection concept. We want to assurereliability and allow regional flexi-bility, the North American Electric Re-liable Council enforceable standards.We want to promote renewable energy,market-driven approaches and con-sumer choices and not Federal man-dates. That is kind of where we arecoming from.

Again, those issues we disagree onbecause we could not get together andresolve our differences in committee.Among those issues we disagree on arethe extent to which we should stripStates of their rights over electricityand give those rights to the FederalGovernment through FERC. How muchshould we manipulate the electric mar-kets and force a higher priced energyresource on to the consumer at a lowercost? This is the issue of renewableportfolio standards.

How best to protect nuclear plant op-erators from any exposure on a cata-strophic loss and how to keep themafloat, that is the Price-Anderson.Some people see this as a way of pro-longing the life of the nuclear industry,but I take issue with those people be-cause they are not realists and do notrecognize that there is a trade-off.

There are no emissions with nuclear.There is a problem with waste, but it isemission-free. We look at global warm-ing concepts. We look at emissionstandards. There is certainly room forthe nuclear energy industry, and theyneed Price-Anderson.

Where do we explore for energy re-sources to meet our growing needs? Weknow about ANWR, but what about thelower 48? How do we make automobilesmore efficient without jeopardizingsafety, undermining consumer choice,and hurting the American worker?This is very real, if you are working inan automobile plant or in a partsplant.

How to make our homes more effi-cient, again, without hurting theAmerican worker? Our energy effi-ciency standards such as the proposed13 SEER air-conditioning and heatpump standard—are those the answer?Our disagreements on these provisionsare deep and run to the heart of whatwe believe the proper role of govern-ment to be.

Many of these provisions constitutean unacceptable intrusion of the Fed-eral Government into the marketplace.Many of these provisions have little todo with our energy security but rep-resent a growth in Federal authority atthe expense of the States and our con-cept of federalism.

Some of these issues impact myState of Alaska. The rationale is very

clear. We have a chart here that showsAlaska and gives you some idea of thegeographics of the area, because it hasbeen said the energy wealth of NorthAmerica is in the Arctic. If you look atCanada over in the all-white portionhere, and look at Russia over acrossthe Bering Straits in the all-white,what you have between them is Alaska.If you concede the energy wealth ofNorth America is coming from the Arc-tic, you have to concede one thing: Theonly State with ‘‘Arctic’’ in it is Alas-ka, and we have already seen the devel-opment of oil from Prudhoe Bay. Thathas constituted initially 25 percent ofthe total crude oil produced in thiscountry but today about 20 percent. Itis pretty significant.

A lot of people forget that the samearguments that prevailed in this bodyin the 1960s are prevailing today on theissue of opening up ANWR.

We have another chart I want toshow on Alaska that gives a little dif-ferent view because it projects theANWR issue. We will go into this ingreater detail. But what I want to showis the realization that the Prudhoe Bayoil field has produced that energy forabout 27 years. It has produced it by an800-mile pipeline, so the infrastructureis already there. It is pretty significantbecause I indicated it is 20 percent to 25percent of our total energy.

Let’s relate that to real terms be-cause it is appropriate that we relatethis to things we can all understand.How big is Prudhoe Bay? It was sup-posed to have recoverable reserves of 10billion barrels. We are in the process ofproducing the 13 billionth barrel now.

How big, according to the experts inthe final USGS study? There was onemade in 3 days to accommodate theformer Secretary of the Interior, butthe current one, the most credible one,suggests the reserves at 5.6 billion to 16billion barrels. If it is an average be-tween the two, it is about 10 billionbarrels, which would provide the Na-tion with as much as Prudhoe Bay iscurrently providing. So you doublethat.

The question is, Can you do it safely?We will get into it later. The footprintis pretty small. In H.R. 4, the Housebill, it was 12,000 acres. We are nottalking about peanuts here. If the oilisn’t there, it will not be developed;that is all there is to it. We have tofind a lot of oil in Alaska because thecosts are so high.

The chairman of the committeetalked a little bit about natural gasthat has been found. It is important tonote on this chart that this gas hasbeen found associated with looking foroil, not gas. It is an incidental find. Iused to say to the geologists: If youfind another gas discovery, forget it.We are not even going to buy you aCoke. We are looking for oil. But in theprocess, they accumulated about 36trillion cubic feet of proven gas, thelargest deposit of gas known to exist inNorth America. So it is very importantthat we look to ways to get that out. I

CONGRESSIONAL RECORD — SENATE S1511March 5, 2002appreciate working with my colleague,the chairman of the committee, in thatregard.

We need the development of gas fromthe Arctic. Our country needs it for thesimple reason that we are pulling downour gas reserves faster than we arefinding new ones. I think we have achart that shows our reserves in de-cline. The Senate plan that the Demo-crats propose—the Senate Democraticplan that has been presented—initiallywas to provide, I believe, a $10 billionguarantee. It did not address a routeselection.

One of the amendments I am going tohave will be to mandate a southernhighway route that would bring the gasdown paralleling the pipeline to Fair-banks and follow the highway intoCanada. That would keep options openfor Alaskans. It would keep options tobring gas down to the port of Valdez ifthe market for the liquefied naturalgas in Asia should develop. It wouldprovide an alternative to bring gas intoFairbanks and take that gas further ondown to Point Mackenzie or take thegas into Anchorage or down the KenaiPeninsula where gas is liquefied andexported and urea and ammonia aremade. We want to keep all our optionsopen. So it is very important a south-ern high route be designated in thislegislation.

Make no mistake about it, I supportthe development of the resources, boththe oil and gas. However, the proposalput forth on the other side allows forsome untested technology to be used insensitive areas of the Arctic over theopposition of some of the Native peopleand virtually every elected official inAlaska.

What I am concerned with here is therealization that currently this legisla-tion does not exclude another route,which would be a route over the top,across Canada. Most of those jobs andmost of that activity would benefitCanada and not the State of Alaska,nor American labor.

I remind my colleagues, the gas inquestion is owned exclusively by theState of Alaska. This is not Federalgas. This gas is on State lands associ-ated with the fields at Prudhoe Baywhich are on State lands. Unlike dis-cussions about leasing of the so-called1002 area—that chart is behind thisone—the Coastal Plain where the sub-ject of Federal lands is the issue, theissue involving gas is strictly on Statelands and is an issue of the State’sability to develop and transport a re-source owned exclusively by the Stateand not the Federal Government.

As a delegation, Senator STEVENS,Representative Young, and I haveworked with the Governor and Lieuten-ant Governor and our Native popu-lation and others to ensure that anyproposal fully protects the interests ofour residents, the environment, andthe state of our economy. So it is im-portant to have a proposal that meets,if you will, our wishes relative to whatis in the best interests of the State as

well as our Nation. Our Nation, again,is pulling its gas reserves down fasterthan we are finding new reserves.

Furthermore, the project that hasbeen proposed has some problems withit because the producers of the gas—namely, Exxon, British Petroleum, andPhillips—have indicated at the currentprices the project is uneconomic at thistime. We have a situation where, tomake it economic, we are going to needsome assistance. What I am talkingabout is how we can work to come upwith a methodology to take some ofthe risk out of the movement and de-velopment of this project because thiswill be the largest and most expensiveconstruction project ever undertakenin North America. We have to be care-ful that it stimulates the United Stateseconomy and not the Canadian econ-omy, and that we recognize the con-tribution of American workers bykeeping as much as possible of thispipeline in the United States or Alas-ka.

What we have here, of course, amongour critics are, for the most part, peo-ple who have never visited the Arctic.They have never taken an opportunityto go up there.

I will say Senator BINGAMAN has ac-companied me up on occasion, wherewe had the Secretary of the Interior.We got a lot of fresh air. It was cold.But, nevertheless, I think we weregiven an opportunity of having ex-tended hospitality by the Eskimo peo-ple, as well as seeing some of the high-est technology in the oil and gas busi-ness underway.

It is my intention to offer significantamendments to this gas provision tomake sure that the development ofAlaska gas is done in the most environ-mentally sensitive way as possible.That mandates the selection of thesouthern highway route. I intend towork closely with my colleague, Sen-ator BINGAMAN, on these amendments.And I certainly appreciate his support.

There is another area, however,where we have some differences. Iwould refer to some of the statementsthat I have heard. I am not going to gointo ANWR in any detail. But I think itis important that we reflect on a fewthings that are in the minds of some.

We have a chart that shows whathappened to our imports of oil whenthe Trans-Alaska pipeline fromPrudhoe Bay to Valdez was built. Wehave heard critics and environmental-ists suggest that the impact of ANWRwould not have any significant effecton oil imports into the United States.It shows the barrels of oil per day thatthe United States imports. In the timeframe between 1977, 1978, and 1979, im-ports clearly were up. Then the 2 mil-lion barrels a day came down fromAlaska. You see TAPS opens at thetop, and imports begin to drop dra-matically. The reason our importsdropped is the market for oil didn’t de-cline. It was because of the contribu-tion by Alaska’s domestic production.

The point of this chart is a very sim-ple one. It simply shows that when you

produce more oil of the magnitude of amillion barrels a day, it has a decidedimpact on reducing imports.

You see this period from 1982 throughabout 1987, and then imports start toclimb up again.

Where would we have been if wedidn’t have the Prudhoe Bay contribu-tion? That is my point. It would stillbe going off the chart. The chart in redclearly shows the import vis-a-vis Alas-ka production. The blue line showsAlaska production coming on line andit beginning to decline. It would notdecline if ANWR were opened.

We also have statements by variousindividuals that are made from time totime relative to the effects on drillingin Alaska, and the impact that itwould have on various areas of con-cern.

I am going to refer to a couple ofthose because I think we need to shedsome light on it.

I can only defer to those who have in-dicated some position on the issue ofopening up the Arctic to oil and gas ex-ploration. I would like to, first of all,refer to comments that were made bymy good friend from Massachusetts,the junior Senator, who on MSNBC’s‘‘Hardball with Chris Matthews’’ onFebruary 26 of this year and indicatedthat:

The alternative to drilling in Alaska isseveral things. No. 1, there should be drillingalmost anywhere but Alaska. No. 2, youcan’t drill your way out of the problem ofthe Persian Gulf.

I think the last chart we saw indi-cated that by drilling our way domesti-cally we reduce our imports. I thinkthat question has been resolved. Ithink for the first one—drilling almostanywhere but Alaska,—let us look atanywhere but Alaska.

Here is the chart of the UnitedStates. If you look at the gray areas,you see the areas off limits for drilling:The entire east coast from Maine toFlorida, the area off Florida in thegulf, and then in the overthrust belt—those areas which have been closed pri-marily because of wilderness mandates.Colorado, Wyoming, and various otherStates are limited. And clearly thewest coast is off limits.

I wonder where in the world the oil isgoing to come from if we have takenall of these areas off limits. Some sug-gest going to the Gulf of Mexico offLouisiana. That is where a good por-tion of our exploration is occurring. Itis occurring there because of the tech-nology. They are drilling in 3,000 feet ofwater. The industry is doing an ex-traordinary job. We have to go some-where.

Then we have heard from time totime: Who wants to drill where? Clear-ly, Alaskans propose drilling and sup-port drilling in our State.

The point is, you have to get it some-where. If you do not get it domesti-cally, you are going to import it.

As I have indicated, gas isn’t theonly resource our State can contributeto America’s energy security. The gas

CONGRESSIONAL RECORD — SENATES1512 March 5, 2002will not fill the transportation needs ofCalifornia, or some of the other Statesas some have suggested. Only the de-velopment of a small portion of ANWRcan do this.

We have heard discussions on theissue of safety. We have heard discus-sions on the issue of Prudhoe Bay—theamount of oil, the timeframe, the wild-life, and the caribou. We are going toshow you some of the wildlife associ-ated with the area as a consequence ofgood conservation and the fact thatthese animals are not subject to hunt-ing. As a matter of fact, polar bear can-not be taken by a non-Native in myState of Alaska because it is protectedby the Marine Mammal Act. If youwant to take a polar bear, you can goto Canada, or you can go to Russia, butyou can’t go to Alaska. I think that isa pretty significant conservation of thepolar bear.

You see pictures of the caribou be-hind me. You see pictures of bears be-cause they are not threatened. Theyare not shot. You can’t run in therewith a snow machine and run themdown.

Some would be surprised. I don’t be-lieve there is anyone here from Texas.So I can make this statement withoutfear of reprisal. But geologists indicatethat ANWR holds more oil than all ofthe proven oil reserves of Texas—all ofTexas. I might add that Alaska isabout 21⁄2 times the size of Texas. Thatwould equate to 30 years worth ofSaudi Arabian imports. Engineers be-lieve that it can be explored for lessthan a 2,000-acre footprint. The unionmen and women of this Nation believeit can create thousands of jobs. It canbe flowing in a few years—not 10 years.It is a matter of recognizing that if wewant to go ahead with it, we can issuethe permits. We can do it safely. Win-ter exploration will occur on ice roads.

Some suggest that it is a decadeaway. That is not factual. It is unfortu-nate that some people who have neverbeen there think they can make deci-sions about the people who live there.

Unlike the plan that has been pro-posed on the other side of the aisleabout Alaska’s gas, the plan to developAlaskan oil will use proven and testedtechnology. It will take advantage ofexisting infrastructure on the NorthSlope. It will minimize the impact ofArctic environment. It will have thebenefit of a 7-year environmental im-pact statement. It will limit the sur-face footprint to 2,000 acres, and it willrequire the use of project labor agree-ments—labor that will prohibit the ex-port of any energy resource. None willbe exported outside the United States.

It is overwhelmingly supported bythe delegations—Senator STEVENS,Representative YOUNG, myself, ourGovernor, our Lieutenant Governor,the State legislature, and the people ofthe area, the Innupiat Eskimo people.

In conclusion, I realize that some inthis Chamber regard energy as just apolitical issue, pure and simple, withpressure from the environmental com-

munity. It is just another piece of thepuzzle that has been laid out for us.

I think our last piece is to reach thebipartisan goal of coming together andrecognizing that this country simplycannot proceed with its increased de-pendence on imported oil.

As a consequence of that, I think wehave to be very careful to not sellAmerica’s can-do spirit short, theAmerican family, and America’s fu-ture. We must address the national se-curity interests that our President hasdirected us to do by coming up with aresponsible energy bill at this time. Asa consequence, we have differences.But, hopefully, we can work that outthrough a process of debate. We havedifferences that we can undoubtedlyaddress with regard to alternative andrenewables.

But make no mistake about it, weare not going to be able to get therefrom here on any one alone. It is goingto take all our resources to meet ourenergy demands until we have signifi-cant breakthroughs in technology thatwill allow us to lessen our dependenceon our conventional sources of energy.

Energy isn’t about politics. It isabout families, families across thiscountry wondering if their jobs aregoing to be there in the morning. It isabout preserving the very independenceof this Nation because I believe in a na-tion that is dependent on no one butGod alone.

I recognize the public policy debateabout how best to approach our energypolicy. I know it is complex. I know itwill involve issues at the very heart ofthe extreme environmental agenda.Yet, at the same time, I take issuewith that environmental agenda be-cause it suggests that we can simplyget there on conservation alone, andthat is not a realistic assumption.

At the same time, I think the issuecan be framed rather simply. It is bet-ter to have strong domestic energy pol-icy—I use the word ‘‘domestic’’—thatsafeguards our environment and ournational security than to rely on thelikes of a Saddam Hussein to supplythis energy.

On September 11, we were importinga million barrels, just a little over amillion barrels a day, from SaddamHussein. Today that is about 870,000barrels a day. We bombed him twicethis year, once just a few days ago. Wehave put the lives of our young womenand men at risk enforcing that no-flyzone over Iraq. He attempts to shoot usdown. We take out his targets. But wetake his oil. It is almost as if we put itin our jet fighters and go over and takeout his targets. He takes our moneyand develops a missile capability. Hepays his Republican Guard. As a con-sequence, he remains a threat to worldpeace.

At whom is he aiming these missiles,this biological capability he has devel-oped? At our ally, Israel. When will wecome to grips with the likes of a Sad-dam Hussein as we continue to relymore and more on that source, when

we have a domestic source at homethat we can develop safely? The an-swer, in my mind, is clearly that weshould reduce our dependence on for-eign oil.

We have a statement from an out-standing American who has indicated—well, we will get it for the later debate.But we have a number of statements ofoutstanding Americans who have indi-cated they believe it is the worst mis-take we could possibly make to con-tinue our dependence on imported oil.

Excuse me. I have a chart with aquote from Richard Holbrooke, Ambas-sador to the United Nations in the sec-ond Clinton administration. This wasin the Washington Post of February 12.I quote:

Our greatest single failure over the last 25years was our failure to reduce our depend-ence on foreign oil . . . which would have re-duced the leverage of Saudi Arabia.

These are people who know whatthey are talking about.

Furthermore, I have to recognize theresponsibility that we have in thisbody to the President. President Bushhas asked, time and time again, for anenergy bill. He has asked as recently asin his State of the Union Address be-cause he recognizes the urgent need fora national energy plan. He knows en-ergy is about jobs. He knows energy isabout security. He wants to protectthis Nation from the Axis of Evil. Heknows that so long as we are dependenton other nations for our energy, ourvery security is threatened and our fu-ture at stake.

So, Mr. President, our challenge isclear: To deliver to this President anenergy plan for our Nation and our Na-tion’s future. That is the job of thisbody. I have indicated, the House hasdone its job by passing H.R. 4.

So I pledge my support to improvethe legislation before us and get a billto the President as soon as possible. Iurge my colleagues to recognize theweight of the task before us, to pushaside their agendas, and to do what isright for the Nation.

Finally, in conclusion, I encourageMembers to recognize that we havecontentious issues here in ANWR, inCAFE standards, in renewable portfoliostandards in electricity and perhapsseveral others. But I encourage Mem-bers to use accurate information—par-ticularly when they are talking aboutmy State, particularly when they aretalking about Alaska and having nevervisited there, and particularly whenthey are expressing the litany of oppo-nents such as some of the national en-vironmental groups who fail to addressthe question of whether we can do itsafely. The answer is clearly yes, wecan do it safely based on 30 years of ex-perience in the Alaska’s Arctic.

Is it a significant supply? Some sug-gest it is 6 months. Obviously, it is po-tentially as much or more thanPrudhoe Bay, which has been 25 per-cent of the Nation’s total production;particularly when they say it is 10years away, when it is only a matter of

CONGRESSIONAL RECORD — SENATE S1513March 5, 2002a few years if, indeed, the oil is there;and, finally, to recognize that when wepassed legislation that would haveopened ANWR in 1995, if President Clin-ton had not vetoed it, we would haveall this behind us. We would knowwhether the oil was there. And if itwas, it would be flowing and reducingour dependence on imported oil.

So it is in our national security in-terests. It is in the interests of Amer-ican labor and American jobs to moveforward with ANWR. I encourage Mem-bers who have been lobbied heavily byAmerica’s environmental communityto recognize that they are going to becalled on to vote, to vote on the ques-tion of whether to appease and be re-sponsive to the environmental lobby-ists, or do what is right for America.

I will conclude with a reference to astatement made by a former and re-spected Member of this body, SenatorMark Hatfield of Oregon, who was, Imight add, a pacifist—at least in theminds of many of us, although we hadthe deepest respect for him—who said:I will vote for opening ANWR any dayrather than send a man or woman inour Armed Services overseas to fightanother war over oil.

I think that says a lot.Mr. President, I yield the floor and

look forward to the statements of mycolleagues who will be forthcomingthroughout the day.

Mr. DASCHLE. Mr. President, theevents of the last year have high-lighted what Americans have knownsince the 1970s, our economic securityand our national security depend onour energy security. Americans need—and deserve—an energy plan that trulymoves us towards energy independence.

America’s appetite for energy con-tinues to grow each year. Today we im-port nearly sixty percent of our oil.And the problem is getting worse, notbetter.

Over the next 10 years, the UnitedStates is expected to consume roughly1.5 trillion gallons of gasoline, most ofit refined from imported oil.

We need to reduce our growing de-pendence on foreign oil. We need to en-sure the reliability and security of ourenergy supply. And we need to do so ina way that is good for our families, oureconomy, and our environment.

There is no doubt in my mind that wecan do all of these things, if we’re will-ing to invest in new ideas, new tech-nologies, and new approaches to oldproblems.

As we begin this energy debate, Ithink we should keep in mind four keygoals. Any energy plan we pass shouldincrease our energy independence, itshould be good for consumers, it shouldcreate jobs, and it should be respon-sible, both environmentally and fis-cally.

Nine committees have worked on thisbill, and Senator BINGAMAN has done anamazing job of coordinating input fromso many committees and so many Sen-ators on both sides of the aisle.

In the end, he’s put together a billthat meets each of these goals.

Opponents of this bill have essen-tially said that we face a choice be-tween production and conservation.This bill demonstrates that we can, in-deed, increase both.

First, production.For a long time, we’ve looked for the

‘‘Made in America’’ label on ourclothes. We need to put that same‘‘Made in America’’ label on our en-ergy, too.

That means increasing our domesticproduction. But it also means recog-nizing the reality we face. We hold only3 percent of the known world oil re-serves, and we consume 25 percent ofthe world’s supply. Even if we drilled ineverybody’s back yard, we could nevermeet our own demand with our ownsupply.

One might call the assertion that wecan drill our way to energy independ-ence, fuzzy math.

That’s not to say that we shouldn’tdrill for oil and gas in the UnitedStates; to the contrary, we can and wemust.

But we cannot simply drill our wayout of this problem, and we should notbe drilling in environmentally sen-sitive areas, such as the Arctic Na-tional Wildlife Refuge.

Here is what we should do: We shouldlook to develop natural gas deposits indeepwater areas of the Gulf of Mexico,and allow for increased productionwhere it is environmentally accept-able.

We should explore for oil and gas inthe National Petroleum Reserve inAlaska, the area where the three larg-est onshore oil reserves in the last tenyears have been found.

And we should construct a pipeline tobring natural gas from Alaska to thelower forty-eight states. There are 35trillion cubic feet of known natural gasreserves on the North Slope of Alaska.

Right now, we are literally pumpingthat gas back into the ground becausewe have no way of getting it to people.

This 2,000 mile long gas pipelinewould create 400,000 jobs, use an esti-mated 5 million tons of US steel, andensure that we do not become depend-ent on imported liquified natural gasfrom the middle east. If we want to cre-ate jobs, increase our energy security,and help the U.S. steel industry, thenbuilding this pipeline is the way to doit.

Energy for America, jobs and oppor-tunity for steelworkers, and no damageto sensitive environmental areas, thisis the type of pro-development, pro-jobs, energy project we should be en-couraging.

Others assert that we can dig ourway to energy independence. Some seecoal as a panacea. Others see it as adirty and unsafe source of energy. Butthe choice between simply using morecoal or less is a false choice.

This bill says that we can use coalbetter.

It invests in new clean coal tech-nologies, which are good for our envi-ronment. In so doing, it will create jobs

in an industry and area that has beenlosing them, and will help guaranteethe future of coal in America.

Still, we need to recognize that drill-ing and digging simply won’t add up toindependence if we don’t find other fuelsources here at home.

That is why this bill invests heavilyin new and renewable fuels, includingbiofuels.

For example, it will triple our use ofethanol, which is a clean-burning,corn-based, renewable fuel.

It will help us harness the power ofthe wind, the sun, and the heat of theearth itself with tax incentives to de-velop these sources of energy, and tokeep the energy produced affordable.

Recent analysis indicates that in-vesting in these clean and renewableenergy technologies will create 1.3 mil-lion new jobs for American workers.

More importantly, energy from thesesources would come from Americanfarmers and producers, pass throughAmerican refiners, and fuel Americanenergy needs. No soldier would have tofight overseas to protect them. And nointernational cartel could turn off thespigot on us.

For all of those reasons—economic,security, and environmental—this billsets a goal of generating 10 percent ofour energy from renewable sources by2010.

Some states are exceeding this goalalready. There’s no reason that our na-tion can’t meet it.

Our bill also invests in common-senseefficiency, and the new technologiesnecessary to increase efficiency with-out making sacrifices in performance.

Take air conditioners, for example.Two years ago, the Clinton Adminis-tration issued a standard that wouldhave increased the efficiency of airconditioners by 30 percent.

Here is what that means: a 30 percentmore efficient air conditioner wouldsave our nation from having to buildthe equivalent of 50 new power plantsand save Americans $3 billion in elec-tricity bills.

Meeting that standard isn’t a pie-in-the sky proposal or a crushing newmandate for business.

In fact, Goodman ManufacturingCompany, the second largest air condi-tioning manufacturer in the UnitedStates supports this standard and saysthat they can meet it with no addi-tional cost to consumers.

As John Goodman, Chairman andChief Executive Officer of the com-pany, said, ‘‘[the higher standard] isjust the right thing, and it’s somethingour industry can do to help.’’

The Bush Administration revokedthis standard, and the House-passedbill doesn’t include it. We think itmakes sense, and that’s why we requireit.

This bill will help us make similar ef-ficiency gains with items such as vend-ing machines, commercial refrig-erators, lights—even our power lines.

As Senator KERRY has said so well,you just can’t tell Americans you’re se-rious about energy security unless

CONGRESSIONAL RECORD — SENATES1514 March 5, 2002you’re willing to tackle transportation,where 70 percent of the oil we purchaseis consumed.

During the 1970s, America created aprogram to increase auto efficiency.Those standards now save 3 millionbarrels of oil every day. But becausethose standards were frozen sevenyears ago, our vehicle fuel efficiency isworse now than it has been in twentyyears.

So this bill says that automobilesand light trucks should average 35miles per gallon by the year 2013.

This doesn’t mean that we are goingto take away anyone’s SUV or makeevery American drive a compact car.

It means that the car companies willdo what they say they can do, and in-crease the efficiency of the vehiclesthey make.

In fact, the National Academy ofSciences found that technology that al-ready exists can be used to improve thefuel economy of automobiles and lighttrucks without affecting safety or per-formance.

When the fuel-efficiency provisions ofthe Senate energy bill are fully imple-mented, they will not only save Amer-ican drivers billions of dollars—theywill save our Nation the same amountof oil we are currently importing fromthe Persian Gulf.

Finally, when it comes to energy effi-ciency, this bill says that the FederalGovernment must lead by example.

Last year, the Federal Government’sutility bill totaled $3.4 billion. This billmandates that the government use costeffective technologies that consumeless energy.

This small step alone—one that isnot a part of the House-passed bill—will save taxpayers $250 million a year.

Doing all of this will be good for con-sumers and families, good for our en-ergy independence, and good for oureconomy.

Finally, this bill demonstrates inter-national leadership on global climatechange—leadership that the Adminis-tration, sadly, has been unwilling toshow.

This bill links energy policy and cli-mate change by creating a nationalstrategy to track and reduce carbonpollution and other greenhouse gasemissions. It funds research and devel-opment on innovative technologies toreduce carbon pollution, opens marketsfor clean energy technologies, and de-mands high-level coordination andleadership from the White House.

The science on this issue is clear.Carbon pollution and other greenhousegas emissions are causing changes inour climate, including coastal flooding,agricultural disruptions and significantdamage to our ecosystems.

As the largest emitter of carbon pol-lution in the world, I believe theUnited States has a special responsi-bility to help address this problem.This bill does.

Now, we know what our opponentsare going to say about this bill andabout our approach.

They are going to say that we aregoing to take away people’s SUVs andwashing machines—we are going to askyou to sweat in the summer and freezein the winter.

They will try to tell you that this isa choice between abundance and aus-terity. They couldn’t be more wrong.

Actually, they are right about onething—we do face a choice. It is achoice between the past and the future,between a bill that is good for con-sumers, or one that serves only the en-ergy companies.

The energy bill that passed the Houseis based entirely on the old philosophyof dig, drill and burn. The centerpieceof that plan is to open the Arctic Ref-uge.

Supporters of drilling in the ArcticRefuge have used almost every oppor-tunity to justify their position.

When we were experiencing rising oilprices, supporters said it would makeoil available quickly and drive pricesdown in the process.

But even if Congress were to author-ize drilling in the Arctic NationalWildlife Refuge today, we would notsee significant quantities of oil pro-duced from the refuge for 10 years atthe earliest.

When our economy began to slow,supporters began billing it as an eco-nomic stimulus measure, saying itwould create 750,000 jobs.

Yet that number comes from an out-dated and biased study by the Amer-ican Petroleum Institute. Recent, morecredible estimates by the Congres-sional Research Service and others sug-gest that only 60,000 jobs would actu-ally be created.

And now, as we face threats to ournation’s security, those same sup-porters are wrapping their argument inthe cloak of patriotism, saying thatdrilling in ANWR is vital to increasingour energy security.

But the oil there would only meetAmerica’s needs for less than 6 months.

Let me give you an example of howlittle oil that is: If we all put replace-ment tires on our cars that were asgood as the ones that came with thecars when they were new, the resultingincrease in energy efficiency wouldsave 5.4 billion gallons of oil—70 per-cent more than the total amount of oilin the Arctic Refuge.

Compare that our proposed Alaskanatural gas pipeline we have proposedwhich would provide natural gas toAmerican consumers for at least 30years.

The rest of the House bill is a smor-gasbord of tax cuts for oil and gas com-panies. The Republican bill includes $33billion in tax cuts. Twenty-seven bil-lion of that goes to the biggest energycompanies.

Perhaps even more astonishing isthis fact: Because the House bill failsto make meaningful reductions in thetransportation sector and relies on get-ting oil from a source that wouldproduce so little and so far in the fu-ture, if we enacted it into law today, it

would actually increase our dependenceon foreign oil.

The House plan may indeed be an en-ergy plan for a new century. Unfortu-nately, that century is the 1900s.

Our bill takes the better path—forour energy security, for our economy,for our environment, and for our fu-ture.

Now, there is one other thing we’rehearing from the other party, and it isthe complaint that this bill was notsubject to a markup in committee.

I find this complaint to be ironic fortwo reasons.

First, it is not at all unusual to takea bill directly to the floor. In fact, mycolleagues might remember that theRepublican leadership did the exactsame thing with a Republican energybill—the National Energy Security Actof 2000.

Second, now that we’re debating anenergy bill, some of my colleaguesseem more intent on debating how wecame to debate this bill.

I made a promise to bring this bill upfor debate. That is exactly what I havedone.

No one’s right to be heard will becompromised.

Anyone is welcome to offer anyamendment they choose.

I expect to have a full and open de-bate on this bill. The less time wespend worrying about procedure, themore time we can spend debating thedirection and substance of our Nation’senergy policy.

So, with that, I want to thank Chair-man BINGAMAN and the other com-mittee chairs who have worked so hardto assemble this bill.

And I look forward to working withmy colleagues on both sides of the aislein order to make progress on this vi-tally important piece of legislation.

Mr. REID. Mr. President, we havehad a number of calls in the cloakroomfrom Senators who want to come overand give opening statements. Otherswant to offer amendments. I am won-dering if I could ask the Republicanmanager, because I have cleared thiswith the manager on this side, if wewere alternating back and forth on thestatements—as I said, there are a cou-ple of more statements at least thatpeople want to give this afternoon. It isgoing to take us into early evening. Itis my understanding there is some-thing some Members are interested indoing tonight. I wonder if when we getinto the amendment stage we couldhave an initial agreement that we al-ternate back and forth on amendmentson this very important legislation.That is normally the way we do it. Isthere any problem with that?

Mr. MURKOWSKI. Mr. President, itis my understanding we had reachedagreement on that earlier in our dis-cussion, that we would go back andforth as Members appear.

Mr. REID. On statements.Mr. MURKOWSKI. And we would go

back and forth on amendments. I askthe Chair if that agreement has notbeen previously made?

CONGRESSIONAL RECORD — SENATE S1515March 5, 2002Mr. REID. I apologize. I thought it

was on statements.The PRESIDING OFFICER. There is

an agreement on the recognition of thefollowing two Senators: Senators DOR-GAN and DOMENICI, in that order.

Mr. MURKOWSKI. I would not objectto what has been propounded by themajority whip.

Mr. REID. I would also say to myfriend, so there is some order, SenatorsDASCHLE and BINGAMAN have decidedthey will offer the first amendment andthen we will go to the Republican side.We will probably not get to that untilfirst thing in the morning the way thestatements are going.

I ask unanimous consent that in ad-dition to the alternating of openingstatements on this bill that the amend-ments also alternate; that SenatorDASCHLE or his designee will offer thefirst one and then go to Senator LOTTor his designee, and so on down theline.


The Senator from North Dakota.Mr. DORGAN. Mr. President, I lis-

tened to the comments of my colleaguefrom Alaska. He obviously feels pas-sionately about this issue. I haveserved with him on the Energy Com-mittee for a long while. He studiesthese issues carefully. He uses a pro-digious number of charts when hemakes his presentations.

I noticed that he did say in his pres-entation that there is much in this billon which we can find agreement. He in-dicated there were a number of areas ofagreement. I know he stressed areas ofdisagreement, but I think he also saidthere are a number of areas in this leg-islation where there can be some broadagreement. I think that is helpful.

At the start, however, I want to com-ment on the exchange between my col-league from Alaska and the majorityleader.

The majority leader brought this billto the floor of the Senate for a very im-portant reason. It is not unprece-dented. It was brought to the floor ofthe Senate rather than being movedthrough the committee first.

We all know the issue of energy secu-rity is more than just finding addi-tional supplies of energy. As a result ofSeptember 11, and other concernsabout the broader area of energy secu-rity, the majority leader decided tobring to the floor the product of a num-ber of different committees of the Sen-ate working on this issue of energy se-curity.

This is about protecting America’snuclear power plants against attack byterrorists. That is part of this bill.That is part of energy security. Sothere are a series of things that werebrought together, including the workand the efforts by the Finance Com-mittee dealing with tax credits. That,too, is part of this bill.

The majority leader decided to bringthis bill to the floor as a product of anumber of different committees, to

work on all of these issues on the floorof the Senate, so all Senators wouldhave the opportunity to address theseissues.

It does not shortchange the Senate toadopt that approach. It has been donebefore. It is not unprecedented. Andthe majority leader did not make amistake in doing so. I think he ad-vanced the interests of the energy billand advanced the interests of the de-bate about energy in this country byadopting this strategy, despite the factthat some of my colleagues think itwas the wrong thing to do. I respecttheir opinion, but they are just flat outwrong.

We are here in the Chamber dealingwith energy. That is where we ought tobe. This is an important public policyissue for this country. The bill that hasnow come to the floor has the com-bined input of many committees, whichis as it should be. We ought not dealwith these issues incrementally.

I say that, because I know the major-ity leader has been criticized by somefor this approach. The majority leaderhas done exactly the right thing andhas done it at the right time. He kepthis word in bringing this bill to thefloor, so we can have an open and fulldebate on all of the issues that affectthis country’s energy future.

This is probably not the most oppor-tune time to debate energy. Timing iseverything, of course. This morning Istopped for gas on my way to the Cap-itol Building, and it cost $1.08 per gal-lon. In high school, when I was pump-ing gas at my father’s service station,I was pumping gas for about the sameprice—actually slightly more in realdollars than we are paying today for agallon of gasoline.

The current price probably does notpromote great urgency among theAmerican people that we must have anew energy policy now. Most Ameri-cans understand, despite the fact thatthe price of gasoline is very moderateat this point, that we have a very ten-uous existence with respect to oureconomy and its dependence on a con-tinued long-term source of oil fromplaces such as Saudi Arabia, Kuwait,the Persian Gulf, and Central Asia.

It is foolhardy for us to continue bet-ting our future economic progress on asustained supply of oil from the MiddleEast. We need to do better than the in-creasing reliance year after year thatwe place on that supply of oil. Itdoesn’t mean perhaps that we canever—or certainly not in the short orintermediate term—shut off that oil orfind replacements. I am not suggestingthat. But I am saying that the relent-less march to increase our dependenceon foreign sources of oil, especially onenergy coming from the Persian Gulf,is not a very smart policy.

Let us determine how we can, to-gether, Republicans and Democrats, ingood public policy, begin to ratchetthat back down, so we have less de-pendence on foreign sources of energy.

How do we do all of that? We willhear many statements about many fac-

ets of this energy policy. There are asmany ideas about good energy policyas there are Members serving in theSenate. Emerson once said that com-mon sense is genius dressed in workclothes. Common sense is what we needin putting together the components ofan energy bill that work.

Simply, do we need to produce moreenergy to meet future energy needs?The answer is yes. We need to producemore. Let’s do it in an environmentallysensitive way. So produce more in anenvironmentally sensitive way, No. 1.

No. 2, do we need to conserve more?Yes. We waste too much energy. Let’sdo that in a thoughtful way.

No. 3, can we achieve greater effi-ciency with all of the appliances we useevery day in every way in this country?Yes, of course. That also is an elementof conservation.

No. 4, and finally, turning to limit-less, renewable sources of energy. Thatmakes sense for this country as well.

These policies combined will helpwean us from the overdependence onforeign sources of energy, help us de-velop additional sources of energy athome, and also help us become more ef-ficient and more conservation-mindedas we use energy.

Now, more than ever, we understandthis is not just about energy security,but that energy security is about na-tional security. That has to be part ofthis debate. Reducing our dependenceon foreign oil and better protecting ourenergy infrastructure, that is about na-tional security.

Financial assistance in this billwould help improve critical energy in-frastructure security. That is a part ofthis legislation that is very important.

This legislation will increase domes-tic oil, gas, and coal production. It willdo that in a thoughtful and environ-mentally sensitive way. It will help re-move barriers to production on publiclands in an environmentally sustain-able manner, and it will authorize theconstruction of a natural gas pipelinefrom Alaska to the lower 48 States,helping to create hundreds of thou-sands of jobs and, more importantly,helping us move an estimated 32 tril-lion cubic feet of reserves of naturalgas that exist in Canada, reserves thatare leased and that can come into ourinventory, when we are able to buildthe pipeline. That pipeline authoriza-tion is in this legislation.

This bill will promote research, de-velopment, and deployment of ad-vanced clean coal technologies, some-thing very important, including, espe-cially, opportunities for lignite coal,because coal is going to be a part of ourenergy future. Lignite coal is a signifi-cant part of that opportunity as well.

One of the questions for us when wefinish this debate will be: are we goingto see the future through a rearviewmirror? Is our energy policy a policy ofyesterday forever? We have some whowill come to the floor who will say: Ihave a new idea. Let’s just drill and digfor more oil and coal.

CONGRESSIONAL RECORD — SENATES1516 March 5, 2002What I say is: we support that. We

need increased production. But if ourstrategy for tomorrow’s energy supplyis simply drilling and digging, that is astrategy of yesterday forever.

We had someone from the Energy De-partment testify before the EnergyCommittee. I asked them a simplequestion that we similarly ask about alot of programs. On Social Security, weask the question: What will be the sta-bility and the financial circumstanceof Social Security in 25 or 50 years?Can you tell us what is going to happen50 years from now?

So we do charts and graphs and cre-ate the financial mechanisms to evalu-ate whether we will be on safe groundin 50 years with respect to Social Secu-rity.

I asked the Energy Department offi-cials: What is your plan for 35 and 50years from now with respect to energy?What kind of energy will we be using?What will be the energy mix? Howmuch will we be using?

The answer was: We don’t have aplan.

The reason I asked the question was,I was trying to determine, are we goingto wean ourselves from this overly de-pendent need for foreign sources of oil?Are we going to move toward tech-nologies that will change our use of en-ergy, our need for certain kinds of en-ergy? Have we decided as a country, forexample, if we want to change to a goalof deciding that in 50 years we wantfuel cell cars driving on the streets ofthe Nation’s Capital and all across thecountry using oxygen and hydrogenand throwing water vapor out the backend? That sounds like a pretty gooddeal to me.

The Energy Department’s answerwas: We don’t have a plan. We will getback to you.

My response was: We need a plan.America needs to decide its energy fu-ture, what it intends to do to with re-spect to energy supplies in the longterm.

If we do what some of my colleaguescounsel at this point, we will be backhere 25 years from now, and we willhave exactly the same debate. Peoplewill wear the same color shoes andshirts and suits, and they will stand upand use the same tired, worn argu-ments.

The solution 25 years from now? Digmore and drill more. This debatedoesn’t change. Only the calendarchanges. The people change. You couldhave read this debate 25 years ago. Youwill be able to read it 25 years fromnow, unless we decide we are going todo some things differently.

My first car was a model T Ford thatI restored as a young boy. It was a 1924Model T Ford that I bought for $25. Itwas in an old granary and had not beendriven for decades. The rats had eatenoff the seat covers and all the wiring.It was a tin shell with an engine thatdidn’t work and tires eaten off and rot-ted off. My father owned a service sta-tion, so I pulled it in and put it up on

a hoist. I worked on it for nearly 2years. I restored that 1924 model TFord. It was a great thing to do as ahigh school boy.

Then I got interested in girls and de-cided a 1924 car was not the thing, andso I sold it—much to my regret. I haveregretted that sale ever since. I gotmyself a new two-door car for a coupleof hundred dollars.

My point about the Model T Ford isthat you put gasoline in that 1924 carexactly the same way you put gasolinein a 2002 car. Everything else in ourlives has changed. Everything haschanged around us, except you drove a1924 Ford up to the gas pump the sameway you drive a 2002 Ford up to the gaspump. You take the cap off, you stickthe hose in, and you start pumping.Seventy-seven years later, nothing haschanged. Should it? Will it? The answeris, yes, if we decide as a matter of pub-lic policy that we want to put in placeenergy policies that will advance a dif-ferent kind of energy future in thiscountry.

Now, let me talk a bit about somefeatures of this bill that I think arevery important. This bill contains a se-ries of goals that I think almost every-body would or should agree with: Toensure adequate and affordable sup-plies of energy from renewable sources,as well as oil, gas, coal and nuclear;improve the efficiency and produc-tivity of energy use, including energyreliability and productivity of elec-tricity; and to improve energy use inindustry vehicles, appliances, andbuildings.

I am particularly interested in re-newable energy. Last week, I broughtup on the floor of the Senate the 5-yearextension of the wind energy produc-tion tax credit. That tax credit expiredat the end of last year. The result ofCongress allowing that to expire meansprojects are put on the shelf that areready and funded. They are put on theshelf. There is a company that has a150-megawatt project for North Da-kota. They have the money for it—$150million. The project is ready to belaunched. However, the companyshelved the project until Congresspasses the extension of the wind energyproduction tax credit. That makes nosense. But taking energy from the windwith highly-efficient, new wind tur-bines and producing electricity, andputting it on lines and moving it acrossthe country makes great sense to me.

On transmission issues, we have newtechnologies, such as the compositeconductor technology, which can dou-ble or triple the efficiency of existingtransmission lines. Putting up a windturbine, producing electricity from thisturbine, and transmitting that elec-tricity makes great sense. I come froma State that is No. 1 in wind. The U.S.Department of Energy says North Da-kota is the ‘‘Saudi Arabia of wind.’’The potential to develop wind energyfrom my State is exceeded by no otherState. We are last in trees. North Da-kota ranks 50th in native forest lands.But it ranks first in wind.

So, we want to put up some windtowers in North Dakota and be able tomove some of this energy around thecountry. Renewable, limitless sourcesof energy—that makes good sense tome.

What we have now is all of theseprojects that are stalled, because Con-gress has not done its job. This billcontains a five-year extension of thewind energy production tax credit. Andwhile I support it in this bill, I wouldlike to get it done apart from this billbecause, as we know, when we com-plete the bill in the Senate, we will bein conference with the House. This willtake months.

My colleague from Wyoming, theother day, said—after I gave this pres-entation on extending the wind energyproduction tax credit—he said, yes, butwe are taking that up as part of the en-ergy bill. That is of little solace to me.It will be months and months beforethis energy bill is completed. Mean-while, projects in many States will lan-guish on the shelf when, instead, thoseprojects should be helping to createjobs and energy.

With respect to electricity, I havejust described the reliability of thetransmission grid and the opportunityin this legislation to help facilitate ac-cess to and reduce constraints of thegrid. This bill will help create a moreseamless and national grid, and it willhelp States like North Dakota use itsvast resources, such as coal and wind,to be able to move electricity aroundthe country.

We also are going to repeal PUHCAand PURPA in the context of this com-prehensive energy bill, while we willstill retain sufficient consumer protec-tions and safeguards, which are in-cluded in this legislation as well.

And, this bill is going to facilitateenergy production and transmission ontribal lands.

It also includes measures to researchand deploy transmission technologies—which I am very high on—includingcomposite conductor wire that can dra-matically increase the efficiency of ex-isting wires to improve the efficienciesof existing lines and alleviate trans-mission bottlenecks.

We are going to hear a lot about theenergy efficiency of appliances, such asresidential air conditioners. We putinto this bill what is called a SEER 13standard with respect to air condi-tioners. This bill contains a number ofprovisions designed to save energy inbuildings and save energy with moreefficient appliances. The SEER 13 airconditioner standard would save anamount of energy equivalent to thatproduced by nearly 70 power plants.This standard also would save $3.6 bil-lion in electric bills for consumers overa 12 SEER standard.

The Energy Department receivedmore comments on this standard thanon any other rulemaking in the agen-cy’s history. The vast majority were insupport of this 13 SEER standard, andthat is why we have put this standard

CONGRESSIONAL RECORD — SENATE S1517March 5, 2002in the bill. This bill contains Federalbuilding performance standards, too. Itrequires the Government to purchaseenergy-efficient products, among otherprovisions, because the Federal Gov-ernment is the single largest user ofenergy in the United States.

I want to talk for a moment abouttransportation, which is the sector inwhich we consume the most amount ofenergy in this country. If you look atthe demand for energy, you see thatthe transportation sector is where thelargest demand occurs and where thatdemand is increasing.

My colleague, Senator BINGAMAN, hasused this chart on a good many occa-sions. There will be a debate in theSenate on the issue of CAFE standards.I come from a State that uses pickuptrucks, SUVs, and four-wheel-drive ve-hicles extensively. It is not a conven-ience for someone in a northern State,which experiences rough weather, toneed a four-wheel drive. These vehiclesalso are not a convenience for peoplethat are out there operating a ranch, afarm, or living in a small town and are50 miles from a hospital. It is not un-usual for these people to want to drivea vehicle with some weight, a vehiclewith four-wheel drive. I don’t thinkany of them want someone to tell themthey can’t do that.

We can’t address energy without ad-dressing efficiency and without ad-dressing the opportunity to make thistransportation sector more efficient.So, some say, let’s go to the old CAFEstandard. I happen to prefer a pullrather than a push. Some say, let’spush to 37 miles per gallon or whatevernumber that is being used today. Ithink we ought to say to consumersthat we are going to empower themwhen they buy their vehicles. We aregoing to give them a very substantialtax credit to purchase more efficientvehicles—a per car credit of $4,000 or$5,000 depending on the value of thecar.

So, a consumer would be able to go toa car dealership, knowing that such acredit would only exist if he or shewere to buy a car that meets certainefficiency standards. If one manufac-turer is not making that type of car,then the person would be able to go toanother manufacturer.

I want to ‘‘pull’’ manufacturers to bemaking the kind of products that con-sumers would want to buy, given cer-tain tax credits. But I don’t want peo-ple, because of where they live, or be-cause of their needs, to be penalized, ifthey drive a four-wheel-drive pickuptruck or SUV. We are going to debatethat. So, I will have more to say aboutthat in the future.

We have a difference of opinion onwhether we should provide a legislativepush or pull. I believe that our futurewith respect to vehicles is to be able toexpect that we will see the manufac-ture of more hybrid vehicles and hydro-gen-powered fuel cell cars. I drove ademonstration car on the Capitolgrounds, which was running on oxygen

and hydrogen, and it was emittingwater vapor out the back end of thecar. That is the future. But we won’tget to that future unless as a matter ofpublic policy we pull very hard in thatdirection. Otherwise, we will be con-signed to yesterday forever. We willkeep doing what we have done forever.The past is our future. That is notwhat I want for an energy policy.

If that is going to be the end of thisdebate, we should not have it. If this isgoing to be the same debate we had 25years ago—the names have changed onthe floor of the Senate—but if this isour debate, then it is a thoughtless de-bate. This country needs to understandit has a world class economy, thestrongest economy in the world. It usesa substantial amount of energy. Thatuse continues to increase.

We are overly dependent on foreignsources for that energy, especiallyfrom areas of the world that are inher-ently unstable, and we would do well toremember that—especially now morethan ever.

There are some who say, well, that isall really interesting. You folks whotalk about renewable and limitlesssources of energy, that is really greatbecause, they will say, look at thischart. Look at the renewables used inthe United States, compared to othercountries. We are not doing much.

It is a very small part of our energysupply. They will say, you are focusingon the mouse in the corner rather thanthe lion at the door.

The fact is, this country has the op-portunity right now to describe an en-ergy policy that really does turn thecorner and move us in a very new di-rection. If we are moving in the rightdirection at the end of this debate,then we will have probably passed thekind of bill that was brought to thefloor of the Senate and perhaps evenhave improved upon that. Then we willespecially be able to say: We are doingsomething different.

Think about this. I just describedthat, in over 75 years, nothing haschanged with respect to the way we puta gas hose in a 1924 Model T Fordversus a 2002 Ford Explorer—nothing.Think of this country. We have, as peo-ple, written, split the atom, splicedgenes, cloned animals, and inventedradar, the silicon chip, and plastics. Wehave built airplanes and learned how tofly them. We have built rockets andflown to the Moon. We have cured polioand smallpox, and invented the tele-phone, television, computer and theInternet. And now we are hearing fromsome that perhaps, as a new energypolicy, we must just adopt the sameold energy policy and put it in place forthe next 25 years. That is the legacy wewant for our country? I do not thinkso. Our country will go much further, ifwe summon our manufacturers, sci-entists, and geniuses to work on thisproblem in the context of national se-curity needs.

I indicated at the outset that thismight not be the best time to debate

energy policy, because gasoline onlycost $1.08 a gallon this morning. Whengas is $1.08 a gallon, there is not a lotof urgency for change. A year and ahalf ago, we experienced some rollingbrownouts and blackouts, and pricespikes in California. We had a lot ofproblems. There were a lot of reasonsfor those problems.

At the moment, though, there doesnot seem to be a sense of national ur-gency. When gas is $1.08 a gallon, thereis just not that kind of urgency. As Isaid, I was thinking of this old countrywestern song: ‘‘When gas was 30 cents agallon, love was 60 cents away.’’ WhenI was pumping gas at my father’s serv-ice station many years ago, it was 30cents a gallon. In constant dollars, gas-oline costs about the same now. Infact, it is slightly cheaper now.

We must, it seems to me, take theproduct that Senator DASCHLE andSenator BINGAMAN have brought beforethe Senate, and work on this with aneye toward dramatically improvingthis country’s energy future.

This Earth, according to scientists,was formed somewhere around 4.5 bil-lion years ago. Some say that in thefirst nearly 4.499 billion years nothinghappened, but that in the last millionyears, man invented use for his arms,legs, and his cave and, in the last 10,000years, he invented language, tools, thewheel, fire, primitive warfare, and agri-culture. Five thousand years later, heinvented recorded history and chariots.In the past 500 years printing occurred,the steam engine was invented, and theindustrial revolution occurred. Butnearly everything else has been in-vented in a very short period of timethe last 100 years or so. Yet, we tend tothink that our existence on Earth isthe only existence; that this Earth wasplaced here for our convenience.

If we take the long view of energypolicy, we will understand that this isnot the case. The long view of energypolicy says: Let’s change what we aredoing. Yes, let’s produce more; but,let’s also disconnect in the long termand pay more attention to opportuni-ties for limitless and renewable sourcesof energy. Let’s have real conservation,real efficiency, and let’s, as a nation,understand that energy security is partof our national security.

I thank Senator BINGAMAN. Servingon the Energy Committee has been asource of pleasure for me. These arevery interesting and important na-tional issues. Senator BINGAMAN, Sen-ator MURKOWSKI, and many on theCommittee have exhibited great pas-sion about these issues. I chided Sen-ator MURKOWSKI for the number ofcharts he used today. It simply showsthe depth of his passion, and I respectthat.

Senator BINGAMAN has, with quiet,effective leadership for a long period oftime, worked to bring before the Sen-ate a bill of which we can be proud. Isay to him how much I appreciate hiswork.

CONGRESSIONAL RECORD — SENATES1518 March 5, 2002The Energy Committee has been,

from time to time, a divided com-mittee. At other times, we haveworked closely together. The men andwomen who serve on the Energy Com-mittee are good thinkers. They comefrom different parts of the country andcombine to bring to the center a good,interesting, and aggressive debateabout these issues.

As I indicated, I have great respectfor those with whom I may disagree.But there is no more important policywe will debate this year that will haveramifications for decades and decadesinto the future than this energy bill. Iam pleased we can finish our openingstatements and go to amendments. Ibelieve we will start on amendmentstomorrow.

I thank the Senator from New Mex-ico and the Senator from Alaska fortheir earlier statements. I yield thefloor.

The PRESIDING OFFICER. The Sen-ator from New Mexico. I believe undera previous order the Senator from NewMexico is scheduled to address the Sen-ate.

Mr. DOMENICI. Madam President,are there other Senators waiting to beheard? I will not be long; maybe 7 to 10minutes. I thank the Chair for recog-nizing me.

Madam President, I am pleased weare finally beginning to debate a veryserious subject and that we have puttogether a bill that is before us thatperhaps after a couple of weeks of workwill be known as the Senate’s com-prehensive energy policy for our Na-tion.

As President Bush has repeatedlysaid, this issue is a vital component ofour homeland defense and our nationalsecurity. Our economic and our envi-ronmental future is directly tied to ourability to produce ample supplies ofclean, reliable energy. There can be nodoubt that this great Nation, which hasachieved the most significant heightsin terms of material wealth and mate-rial well-being, has done that becausewe have been able, principally with ourAmerican private sector and competi-tion, to supply the kinds of energy thatare needed for this enormous growththat affects each and every family asthey go about their daily lives, as theylive in their homes which have heat,which have cool air in the summer,which have kitchens with all kinds ofappliances to get done what they wantfor their families and enjoy life.

In a very real sense, America’s futureis tied to whether or not we are smartenough to do the right things or, insome instances, to do nothing so thatwe can continue to have this supply ofenergy that we need for our future.

Everyone knows that without an ade-quate supply of energy, our modernstandard of living would plummet.Long-term recession and major joblosses would be the norm. In fact,America would not be the America it istoday in a decade or two if, for somereason, we did not have adequate en-ergy supplies.

We saw the impact sometime backfrom oil shocks and their devastationto our economy, but remember thatthe shock in the 1970s occurred whenwe were little more than one-third de-pendent upon foreign nations for ouroil. Yet we had an enormous shock.Now we are nearly 60 percent depend-ent on oil.

This underscores the importance, inthis Senator’s opinion, of moving for-ward with an energy plan that thePresident will be a partner in and thatthe President can sign, and with hisintervention from time to time that wecan altogether say we have producedan energy plan, bipartisan in nature,under the leadership of our President.

The policy that we have must setforth the principles, should be theguideline, for our debate on a com-prehensive energy policy. That is thepolicy the President put before us.

Specifically, that policy noted thatthrough conservation, more produc-tion, and renewed infrastructure fordistribution, the country can overcomeshort-term energy shortages. In addi-tion, we can build a new approach toenergy that will continue to increasethe quality of life in the United Statesand place us in the leadership role inimproving the quality of life aroundthe world.

Conservation and efficiency clearlymust be part of this comprehensive en-ergy bill. I appreciate the emphasis thePresident has put in his policy pro-posals on these aspects of energy policyin the United States, and I complimentSenator BINGAMAN. While I do notagree with everything in the bill withreference to conservation, with ref-erence to saving of energy, the bill hassome very good ideas in it and I hopesome of them will still be in the billwhen we finish our 10 days to 2-weekdebate.

Conservation has been absolutelyvital to the United States over the pastdecades in controlling our thirst for en-ergy. A lot of people do not know wehave done some very significant thingsin the area of conservation—at leastthe numbers show that—so let me talkabout those.

Since 1973, our economy has ex-panded 126 percent while our energy in-crease has been only 30 percent. Thatshows, in my opinion, we have takenconservation seriously and we have al-ready done something about it. Thatdoes not mean we have solved all theproblems in conservation, that we haveopened all the windows that can beopened to conservation, but clearly weknow how to do it.

I also appreciate the emphasis in thePresident’s policy on environmentalprotection, and that obviously findsitself in this bill also.

I think we should remind ourselvesand fellow Americans that we have ac-complished a lot. For example, again,since 1970 our emission of air pollut-ants has decreased by 31 percent whileour gross domestic product grew by 147percent and the amount of vehicle

miles driven has increased by 140 per-cent. When one looks at those kinds ofnumbers, they know the United Stateshas done a reasonably good job to date.Even though there are many who arecritical, it is obvious to this Senatorthat if we can do again in the next dec-ade or two what we have done in thepast decade or two with reference tothese two areas, we will indeed have avery good energy policy and a policythat will carry us through in goodstead.

Of course, there is more to environ-mental protections than just the qual-ity of air, which I have mentioned interms of where we were and what hap-pened to our clean air. The policy thePresident proposes carefully notes thatmodern energy exploration and extrac-tion technology can be done with mini-mal environmental impact. I hopethose who will listen to the debate andultimately participate by virtue ofwhat they think their Senator shoulddo and letting them know about it—Ihope everybody knows that modern en-ergy exploration and extraction tech-nology can be done with minimal envi-ronmental impact.

I am proud some of these advancedtechniques have been pioneered in theState of New Mexico and are now readyto help in the exploration of ANWR, ifthat be the will of the Congress and ofthe President.

Returning to our immediate task athand, I am not at all pleased with theway this bill got to the Senate, but Iwill not repeat what has been repeat-edly said by the Senator from Alaska.I think the issue that divides us,ANWR, should have been voted on incommittee. I think the bill should havecome with ANWR in or out, with theSenate having debated it in committeeand having voted. I believe if thatwould have been the case, ANWR wouldbe in the bill.

Now, which ANWR? Not the ANWRwe talked about a couple of years ago.The ANWR that is spoken of in theHouse bill, where a very small area,2,000 acres, will be used to determinewhether or not there is sufficient oil toproceed. With the new technologiesfrom that small location, we will beable to determine tremendous informa-tion with reference to what surroundsit and where, and we can determine asa nation and as a people if we shouldproceed.

I believe we should have produced abill that had all of the major issuesthat are now in this bill discussed anddebated in the committee. On the otherhand, I believe Senator BINGAMAN, whocomes with the first major bill I thinkhe has managed—I would ask the Sen-ator, is that correct?

Mr. BINGAMAN. Yes.Mr. DOMENICI. He will probably be

here for 2 or 3 weeks managing thisbill. I believe those who know whathappened will understand the Senatordid put in a lot of ideas and a lot ofproposals that came from our side ofthe aisle. To mention one, there are a

CONGRESSIONAL RECORD — SENATE S1519March 5, 2002lot of proposals in this that are now re-duced to statute form that have to dowith nuclear energy for the future.They were in a bill that I introduced,along with the Senator from Louisianawho is sitting in the chair, and some ofthose were taken—in fact, most ofthem—and are in this bill that SenatorBINGAMAN has brought.

I hope we will take all of the difficultissues that confront us and not dilly-dally, but get them debated and votedon. ANWR is among those. So is theCAFE standard. Let us get on with it.Let us proceed. Then the entire provi-sion on electricity—there is a veryelaborate provision that was put in bythe distinguished Senator from NewMexico, Mr. BINGAMAN, and we willhave to decide whether that is what wewant, but at least the issue will bejoined on another very important partof this bill. So I hope we will proceedon some areas.

It is pretty hard to make the Senateproceed with dispatch when Senatorsknow they have an infinite amount oftime on a bill. It will be hard to getthem to bring amendments, but therewill be plenty of them soon, and I lookfor myself to be participating, particu-larly on the nuclear part of this bill,during which time I will share a lotmore with the Senate and those inter-ested about why we should proceedwith nuclear energy, at least its avail-ability, as part of the mix in theUnited States for our future.

I yield the floor.The PRESIDING OFFICER. The Sen-

ator from Louisiana.Mr. BREAUX. Madam President, I

thank the Chair for presiding in suchan effective fashion.

I will take a minute in the generaldebate time to talk about the energybill that is before the Senate.

No. 1, let me say I think we des-perately need an energy bill. It sort ofgoes without saying, if there is any-thing both sides could probably agreewith in what is otherwise likely to bea relatively contentious debate, cer-tainly we can all agree on the fact weneed an energy bill in this country.

The reasons are quite obvious. TheUnited States prides itself in being avery strong and powerful nation, prob-ably the most powerful nation on theface of the Earth, and perhaps the mostpowerful and strongest nation in thehistory of the world. When it comes tobeing self-sufficient in most aspectsimportant to America, we are there.When it comes to the food we eat,Americans produce more than we caneat. In fact, we supply the food for alarge number of countries around theworld. We do very well. When it comesto medicine, America is the envy of theworld. Pharmaceutical companies arethe best. Medical technology andscience is the best in this country. Peo-ple come to America when they needvery sophisticated, quality health careif they can find a way to get to ourcountry.

So in most all of what we do, includ-ing education, we are indeed No. 1 in

the world, except when it comes to en-ergy. The facts are the opposite whenit comes to energy. We are dependenton other countries to help run Amer-ica, whether it is running automobileson the highways, or the tractors in thefields, or launching a space vehiclewith another satellite, or running anaval vessel, or running a tank, or sup-plying the men and women fighting inAfghanistan.

So much of the energy we use as anation does not come from our coun-try. It comes from foreign nations. Ihave seen the number as high as 58 per-cent of the energy we use in this coun-try comes from foreign sources. Notonly does it come from foreign sources,unfortunately it comes from countrieson which we really cannot depend.

Our energy does not come from Can-ada. It does not come from people whohave been allied with the United Statesin most difficult battles. Much of theenergy supply comes from countriesthat themselves are not particularlythe most stable countries in the world,which means the oil we get from themis not as dependable as it should be.Not only is it coming from countries ina part of the world that is one of themost dangerous, with the potential forthose supplies being interrupted at amoment’s notice because of some addi-tional conflict in the Middle East, itcomes from those countries through aprocess that, if it were engaged in inthis country, people would go to thepenitentiary.

What I mean by that is quite simple.The Organization of Petroleum Export-ing Countries, OPEC, which suppliesmuch of the energy and the oil we useto run America on a regular basis, hasmeetings at very nice places aroundthe world. They bring in all of their oilministers, they sit around the table,and guess what they do. They fixprices. They determine how much en-ergy is going to cost America by sit-ting around the table and deciding howmuch they will produce. If they thinkthe price is too low, they cut backtheir production, they raise the priceand sell it to the United States andother countries around the world.

Between 55 and 60 percent of our oilcomes from parts of the world that fixprices. If business men and women didthat in this country, they could go tothe penitentiary because it is illegal tofix prices. For years we have been com-fortable with getting our energy froman organization that, if they operatedin America, would go to jail.

It is, therefore, abundantly clear weneed an energy policy that allows us toapproach self-sufficiency.

I daresay if we imported half the foodwe ate in this country, people would bemarching on the streets in our Nation’sCapital saying that is unacceptable be-cause food is critically important tothis country’s survival. That is, ofcourse, true. But equally true is thatcritical to our Nation’s survival andstability is the energy that we use. Theenergy that we use to engage in com-

merce is also critical to the securityand the long-range future of thestrongest Nation on Earth.

We can do no less than come up withan energy bill that addresses this mostserious of problems. For the most part,I think that the energy bill before thecommittee is a movement in that di-rection. It can be improved. I hope,through the amendment process, it willbe approved. We have to have a bal-anced energy package. We cannot beputting all of our eggs in one basket.

I remember in the not too distantpast when we talked about trying tocontrol the supply of drugs in thiscountry. The popular phrase at thattime was ‘‘just say no.’’ It soundedgood, but it only addressed half of theequation. It addressed the half of theequation of the demand side. If we donot have a demand for drugs, we willsolve the drug problem. It never reallyworked because we did not pay enoughattention to the supply side. We didnot do enough to try to stop the flow ofdrugs illegally into this country. Theanswer, obviously, was we had to doboth. We had to control the demand inthis country and we had to control theillegal supply to this country.

The same thing is true with regard toenergy. We cannot just save our wayout. We cannot just rely only on alter-native fuels. I have voted for over $6billion of assistance for alternativeforms of energy. I believe in it. I thinkwe have to have renewable energy. Wehave to have alternative kinds of en-ergy. I hope we can develop wind as asource of energy, as well as solarpower. We need to also look at the al-ternative of hydrogen cell fuel utiliza-tion. We have to look at waste mate-rial, whether it is chicken waste, swinewaste, or whatever have you.

I guarantee you that in the foresee-able future we are not going to run theplanes of this country and the tractorson the farms with chicken waste; it isnot enough.

We also have to develop our tradi-tional oil and gas resources. I haveheard some of our colleagues and Ihave heard some of the environmentalgroups say we cannot drill our way outof this problem, as if we were drillingeverywhere. Just the opposite is true.The chart I have shows the light or-ange areas where we can not drill. Theentire east coast of the United Statesof America, either through congres-sional actions or moratoriums byPresidents, both Democrat and Repub-lican Presidents, has said we are notgoing to look for oil and gas from theState of Maine down to the State ofFlorida. It is not quite ‘‘drilling ourway out of it.’’ On the other side of thecountry, from the Canadian border andthe State of Washington down to thecountry of Mexico, and all of the areasbetween, through moratoriums or actsof Congress, they have said: Don’t do ithere either.

All of this area is a potential sourceof oil and gas but because of the oppo-sition of the locals along the west

CONGRESSIONAL RECORD — SENATES1520 March 5, 2002coast of the United States, we are notlooking, we are not searching, and weare not producing energy, much ofwhich is consumed in their respectiveStates.

The west coast of the United Statesis off limits, the east coast of theUnited States is off limits, and theeastern part of the Gulf of Mexico,where everybody seems to want to sendthe offshore production, off Louisianaor Texas, we will not worry; it is alsooff limits, as well.

This Congress just engaged in a verybitter battle over a proposal by Presi-dent Clinton to lease sale 181 in theeastern Gulf of Mexico. President Clin-ton made a compromise in the sale byreducing the area. This administrationreduced it by two thirds further, andwe had a knock-down, drag-out battleon the floor of the Senate to eliminateit completely.

All of these areas are restricted:Don’t do it here; not in my backyard;do it somewhere else. And we continueto import over 58 percent of our coun-try.

We need an energy policy. It shouldbe balanced. And balanced does notmean just wind, solar, and hydrogencell use; it means a combination. Therewill be efforts by the Senator fromAlaska to address some areas of inter-est in his State. I remember quite wellback in 1980 when we were engaged indebate on the Alaskan lands bill—1978,1980. I was a Member of the House ofRepresentatives, chairman of the sub-committee that handled the Alaskanlands bill over in the House. We pro-duced a bill which said we were goingto set aside a very large area in theArctic National Wildlife Refuge and wewere not going to allow any explo-ration in that Arctic National WildlifeRefuge except for one particular areawhich was designated as section 1002 ofthat particular part of the Arctic wild-life refuge. We said the Arctic wildliferefuge would have about 19 millionacres in it. We were not going to doproduction in those 19 million acres,but we were going to reserve 1.5 millionacres in section 1002 of the bill.

I was there when we wrote it. It wasour intent to say at that time, that onesection of the 19 million acres we willlook at and ask USGS to do seismicwork and come back to the Congressand recommend whether we should pro-ceed in that area or not. It is inter-esting. The New York Times and Wash-ington Post are totally opposed towhat the Senator from Alaska is at-tempting to do now. But do you knowwhat they were saying when we didthis back in the 1980s? The New YorkTimes said:

Alaska’s Arctic National Wildlife Refuge. . . the most promising untapped source ofoil in North America.

. . . the total acreage affected by develop-ment would represent only a fraction of 1percent of the North Slope wilderness.

. . . But it is hard to see why absolutelypristine preservation of this remote wilder-ness should take precedence over the na-tion’s energy needs.

That was in the New York Times in1987 and 1988.

The Washington Post had an equallystrong comment about what we weredoing back in 1987 when we set up thisprocess. They said:

But that part of the Arctic coast—

Meaning the coastal plains—is one of the bleakest, most remote places onthis continent, and there is hardly any otherplace where drilling would have less impacton the surrounding life. . . .

That oil could help ease the country’stransition to lower oil supplies and . . . re-duce its dependence on uncertain imports.Congress would be right to go ahead and,with all the conditions and environmentalprecautions that apply to Prudhoe Bay, seewhat is under the refuge’s tundra.

That was in 1987. We are more de-pendent on foreign oil today than whenthey wrote those comments and re-marks back in 1987. They were rightthen. They would be even more right ifthey said the same thing today. But allof a sudden, this area has becomesomething that no one can even touch.

I understand when people say, ‘‘Notin my backyard.’’ I don’t agree with itbecause it is a national program, notjust for one State. But if you live inthe neighborhood, you ought to be lis-tened to more than if you don’t live inthe neighborhood where the activity isgoing to occur.

We are talking about activity in theArctic National Wildlife Refuge, thesmall sliver up there of 2,000 acres. TheGovernor of the State, who is a Demo-crat, supports this activity, the twoSenators who represent the State sup-port the activity, and the Member ofCongress in the House of Representa-tives who represents that area supportsthat activity. I would add the NativeAlaskans who live in the area also sup-port the activity.

So if you want to look to the peoplewho are there and who are duly electedto represent the people, they enthu-siastically support the amendment tobe offered by the Senator from Alaska.

Maybe there is an environmentalgroup sitting in a fancy office in SanFrancisco that thinks: If we take thisposition, by golly, do you know howmany more members we can get? Thiswill be our cause celebre for the next 5years. They love the issue, but I thinktheir position is not correct.

We just can’t do it all in Louisiana.We are going to do our part. We aregoing to do more than our part. We willcontinue to do so. This has to be some-thing that all of us participate in as anation. We have to have more savings.We have to have more alternativesources of fuel. We have to have moreexotic ways of finding energy throughwind and solar power.

But we also have to do what is nec-essary for a number of years to come inbalancing that with traditional oil andgas supplies. You cannot say ‘‘not here,not there, and not there,’’ and solve theproblem.

For those who say there is not thatmuch up there, No. 1, no one knows

how much is up there until we take alook, but the estimates we have fromthe USGS and the industry say there isa sufficient amount of supply up thereto reduce our dependence and elimi-nate all our imports from Saudi Arabiafor the next 30 years. They are thelargest exporter of oil to the UnitedStates. We can eliminate their importsto this country for the next 30 years asa result of that activity. That, I sug-gest, is a very important part of ourNation’s energy solution.

I hope we will have more time to de-bate this issue. I look forward enthu-siastically to doing it. I think the Sen-ator from the State where this wouldbe involved has done an outstandingjob of presenting this issue to thisbody, and I hope we listen to his rec-ommendations.

I yield the floor.The PRESIDING OFFICER. The Sen-

ator from Alaska.Mr. MURKOWSKI. Madam President,

I wonder if the Senator from Louisianawould comment briefly on the advance-ment of offshore drilling off the Stateof Louisiana and the Gulf of Mexico. Iunderstand they are drilling in severalthousand feet of water, and actuallyFederal leases are being sold in excessof that? That technology in deep waterhas risks, obviously, but the industryhas an extraordinary record of success.

Mr. BREAUX. I thank the Senatorfor the question. I will be brief. I knowmy colleague is waiting to speak.

We have been doing offshore produc-tion in Louisiana in some of the mostfragile areas for over 60 years. I wouldargue with anyone that this environ-ment and this ecosystem down here isfar more fragile than the ecosystem inthe Arctic National Wildlife Refuge onthe Coastal Plain. They have tundragrass that grows during the winter acouple of inches high.

We have, down here, an abundantsupply of fin fish, of shrimp, of fur-bearing animals; it is a very fragilecoastal wetland environment that isincredibly productive. Every singlewildlife refuge in Louisiana has oil andgas production on it.

We have learned. We have learned bymistakes. We have benefited fromscience. Now the activity and the wayit is conducted is the state-of-the-arttechnology. To say we have not learneda sufficient amount of information tobe able to apply that to an ecosystemthat is not nearly as complicated, notnearly as fragile, with much smallernumbers of wildlife in existence, as inthis area, I think is to ignore the last60 years of balanced development thatwe have experienced.

I think we ought to learn from thosemistakes as well as learn from ourpositive accomplishment, and apply itin the area of the State of the Senatorfrom Alaska.

Mr. MURKOWSKI. I wonder if theSenator will yield for another question.I notice there are some charts behindthe Senator from Louisiana relative towhat is going on in refuges. I think

CONGRESSIONAL RECORD — SENATE S1521March 5, 2002there is a presumption among somethat refuges are off limits to oil andgas, other exploration. My under-standing is that chart shows the num-ber of activities in various wetlands.

Mr. BREAUX. The wildlife refuge lawwas specifically set up by Congress toprotect an area that had specific sig-nificance. But other activities thatwere compatible were to be allowed.You have to look at each wildlife ref-uge and determine whether that activ-ity is compatible.

Is farming, grazing, or oil and gas de-velopment compatible with the pur-poses of the refuge? In my State ofLouisiana, 12 wildlife refuges—Federalwildlife refuges and State wildlife ref-uges—have oil and gas production, in amuch more fragile environment than ison the Coastal Plain of the Arctic Na-tional Wildlife Refuge. In addition, allthese other States have had the sameactivity in their wildlife refuges and ithas been determined that it has beencompatible.

Do you take special precautions? Ab-solutely. But the point is, it is not ablanket prohibition. What is beingasked today is a blanket prohibition,which I think is not justifiable, par-ticularly when we have as strong aneed as we do.

Mr. MURKOWSKI. I believe the otherchart shows all the specific areas andrefuges that are identified by State. Itlooks like Texas, Oklahoma—a numberof States.

Mr. BREAUX. I think also these arenational wildlife refuges. There are anumber of State wildlife refuges thatStates have set aside that also haveproduction on them as well.

Congress set this up, as the Senatorwell knows—I helped write section 1002over in the other body—as an area thatwas going to be looked to for potentialexploration. The remaining 19 millionacres in the rest of the wildlife refugesin ANWR was going to be set aside forno activity. But Congress specificallymade a decision: Look, we are going toreserve section 1002 for potential explo-ration and production. That is exactlywhat the Washington Post and the NewYork Times were commending Con-gress for at that time.

When President Jimmy Carter signedthis bill, they knew that section hadbeen set aside for the purposes of look-ing at potential oil and gas explo-ration. Now, all of a sudden, we comeback and say: No, we just can’t touchit. I think that is not being fair or bal-anced.

Mr. MURKOWSKI. I thank my friendfrom Louisiana.

The PRESIDING OFFICER. The Sen-ator from Idaho is recognized.

Mr. CRAIG. Madam President, let mefirst and foremost associate myselfwith the words of the Senator fromLouisiana. I think he has made such avery clear and profound case that withthe technologies of today, with whatwe now know and what we have learnedin the wetlands of Louisiana or Texasand on the northern edge of Alaska,

without a doubt we can now exploreand develop oil reserves with little tono environmental damage to the sur-rounding areas; that when those oil re-serves have been finalized or producedout, we can close out and leave, andMother Nature begins the healing proc-ess in a way that within a reasonable,if not short, period of time our pres-ence there is hardly known.

I guess I would be remiss today if Ididn’t say I have looked forward to thistime in the Senate for a long while. Ihad hoped that years ago we could havedebated and developed a national en-ergy policy. I am quite confident thatthe chairman of the committee, who ishere on the floor, feels the same way asthe ranking member. The Energy Com-mittee, on which I have served for 12years, has literally held hundreds ofhearings and maybe thousands of hoursin the taking of testimony as to thecharacter of the national energy supplyof our country—where it comes from,what it means, how it is used—every-thing from current supplies of hydro-carbons to electrical production, coal-fired, hydro, nuclear, on the thermalside of the electrical production, andcertainly oil production.

We have done really, I believe, a phe-nomenally thorough job of looking atthe overall perspective of energy forthis country, both under Republicanleadership and Democrat leadership. Ithink it would be fair to say that thestaff of this committee and Memberssuch as ourselves have developed alevel of knowledge and expertise thatis really substantial.

I say that in this context: That weare capable and should have been al-lowed to let that committee work,under the chairmanship of SenatorBINGAMAN, to craft an energy bill tobring to the floor. But because of theunique politics of today and the uniquepolitics of the energy debate that wasdenied, on October 9 the majority lead-er of the Senate communicated to thechairman of the Energy Committee,who is now here in the Chamber, thatthat committee was not to send forthan energy bill.

We can all speculate as to that con-versation, but I think it has been rel-atively open as to what was said. Cer-tainly the Senator from New Mexicowas quoted roundly in the newspapers.I will not in any way attempt to inter-pret what he said or what he meant.But I know the Senator well enough toknow that prior to October 9, prior tothe August recess of last year, after wecame back in September, and afterSeptember 11, in the conversations Ihad with the Senator I believed he wassincere and that it was his intent toproduce an energy bill.

It has certainly been the intent ofthe ranking member, the Senator fromAlaska, to do so, and to build a com-prehensive bill that this Senate couldlook at, debate, and amend, but mostimportantly that would be assembledinside the expertise of that EnergyCommittee with both staff, Democrat

and Republicans, and Members workingon it, fine-tuning through the amend-ment process, and ultimately comingto do the floor for another bite of theenergy apple, if you will, by other col-leagues who are not on that com-mittee.

We now know that didn’t happen. Imust tell you I believe it is historic inthe fact that it didn’t happen.

I have here in my hand the bill thatwas not written in committee and thatwas not written through the normalprocess—some 539 pages. As I came tothe floor this morning to get a copy, Iwas told that portions of it were stillbeing written or rewritten becausesomehow they had not quite gotten itright yet, or someone had made achange, or maybe it was believed ifthey made a little change they mightpick up another vote or two in a giventitle of the bill. I don’t know the rea-son.

But I do know that on the day whenwe began a historic debate on nationalenergy policy for this Nation, I had nothad a chance to read the bill in detailand it was still being written.

The 539-page bill we have before us S.517. I am told it will have another 40 or50 pages added. OK; 579 pages. TheDemocrat whip is on the floor. If he al-lows us to debate this for a couple or 3weeks, we might get it read, under-stood, and possibly crafted now in theprocess which is legitimately a com-mittee of the whole instead of a com-mittee of the authorizing to deal withnational energy policy.

Am I angered by that? Well, I wouldlike to be. I guess I am more frustratedthat in a representative republic and ademocratic form of government inwhich we craft expertise and talent inthe committees of authorization, it issimply and politically wiped away. Thestroke of the hand of the majorityleader of the Senate says you shall notbecause you cannot do it the way Iwant it done politically.

Before the August recess, if we hadcrafted a bill and worked on it andpassed it out of the Energy Committee,it would have had ANWR in it. Thevotes were there. It would have been abipartisan energy bill. The House actedbefore the August recess. They nar-rowed what we now call the footprintin the Arctic National Wildlife Refugeon which exploration can take place tomeet the political and maybe the ap-propriate exploration needs for thatarea. They got their work done. Weknew we could. I don’t think anybodywould dispute the fact that Democratsand Republicans were working to do so.The majority leader was phenomenallyfearful that his political will could notbe addressed.

Others on the other side of the aisleI think were quite confident that theywould have the political opportunity ofa lifetime to filibuster a bill withANWR in it and to strut their environ-mental stuff.

But something happened after Sep-tember 11. A debate that in the minds

CONGRESSIONAL RECORD — SENATES1522 March 5, 2002of many Americans on national energypolicy was somewhat esoteric, a futureand generational economic exercise,had all of a sudden been refocused. OurNation was at war, we had been at-tacked, and the American peopleasked: Are we so dependent upon a veryunstable area of the world that over-night those sheiks could turn downtheir valves and up would go energyprices? Oh, my goodness, what wouldthis country do? It was no longer thisesoteric and generational economic de-bate. It was a debate over national en-ergy policy in relation to national se-curity as a policy. Somehow they cametogether. As the World Trade Centerfell, energy policy and national secu-rity policy got melded together in theminds of most Americans.

For those who wanted to filibusterover here on the floor, I am quite surethey scurried over to the majorityleader’s office and said: Don’t throw usin that political briar patch, becausewe have to honor our commitments,and we will somehow look anti-Amer-ican if we stand up and deny the rightto explore and develop an abundant en-ergy supply for our country that maysomehow make us less dependent uponthe sheiks of the Middle East.

I do not know if that conversationhappened. But I will bet it did.

As a result, on October 9 the lightswent out in this Nation’s Senate En-ergy Committee. No more were we toauthorize a bill.

The lights went on in the back officeof TOM DASCHLE because he was beingcharged. He charged himself and thechairman of the committee to sendforth a bill. We have that bill on thefloor at this moment. I haven’t read itbecause I haven’t had it. It is stillbeing written. I can’t read it. We willwork to read it as soon as it is avail-able. I understand a new copy is underprint. This is the first book I have everknown of 539 pages in its second printin popularity and nobody has read it.That is strange. The New York TimesBest Sellers List ought to try that one:You go to second print before the firstone is read. That is the reality of whatwe are faced with. We are here now onthe floor of the Senate, I would trust,in good will, to bring forth a nationalenergy policy for this country, if wecan, in a way that we can take to aconference between the House and theSenate, and then place that bill on thePresident’s desk for him to sign and forthis country and its economy to mobi-lize around.

One of first opportunities I had to en-gage with President George Bush waswhen he was President-elect GeorgeBush, right after the issue in Floridahad been solved. He was here on Cap-itol Hill to visit with all of us. We metin then-Majority Leader TRENT LOTT’soffice. He talked about his campaignpromises: A promise to bring forth acomprehensive education bill for ourcountry; a promise to reform and cuttaxes to stimulate our economy and toaffect all segments of it in a positive

and beneficial way. He talked about na-tional security and a variety of otherissues. But he stopped midway throughthat conversation. He said: Do youknow what is really important for ourcountry right now? It is a national en-ergy policy. The lights have gone outin California, we are buying oil from avery unstable region of the world, andgas prices are high. I believe a nationalenergy policy is critical for this coun-try.

That was President George Bushspeaking, and I paraphrase.

He said: I am going to assign the VicePresident that responsibility. We willassemble a governmental task force,and we will craft a policy and get it tothe Hill as quickly as we can, and seeif we can’t work with you here in theSenate and in the House to develop anoverall comprehensive policy.

It was one of this President’s prior-ities, and he acted accordingly. Itshould have been a priority in the Sen-ate. It was a high priority in the House.But here, months later than it shouldbe, after the authorizing committeehad been turned away and its lightsturned out, we are now debating a billthat was a priority for the President,that was our Nation’s high priority,and a bill that many of us have not yetread or understand all of the nuancesor policy proclamations within it. Thatis the reality of what we are dealingwith.

I hope that as we debate this issue,and as we amend it over the course ofthe next several weeks, we will dealwith natural gas exploration and devel-opment on public lands across thiscountry, and that we open up Federallands to do that and put more of ourown gas into the pipeline as we talkabout bringing gas down from Alaskawhere it is currently being turnedunder, so that as we move toward otherforms of electrical generation with gasturbines that meet the clean air stand-ards of our country, we will have anabundance of natural gas to do that atreasonable prices.

I hope this legislation will have that.If it does not, there will be amend-ments to assure that the pipeline infra-structure that is necessary to deliverthat resource to the Nation will bethere, be available, or the incentives todo so will be allowed.

I hope that when we deal with infra-structure issues, we are able to talkabout electrical transmission andRTOs and regional ways of trans-porting electrons from point A to pointB, from New Mexico to Idaho, if that isthe wish of the generator and the user.

As the chairman knows, and as theranking member knows, some monthsago we had a transmission expert be-fore us. I think his words were some-thing like this: The electrical trans-mission lines of this country today arelike a bunch of country roads thatevery so often meet.

That was part of the problem in Cali-fornia when we, from Idaho, were help-ing supply California to keep its lights

on. You just simply could not get en-ergy there, or if you got it to Cali-fornia, then it plugged up along theway as it headed from north to southor south to north. So pipelines, trans-mission lines, infrastructure become animportant part of all of that issue.

For a good number of years I haveworked on the issue of hydro reli-censing. In the Pacific Northwest, weare very fortunate to have a dominantamount of our electrical generation byhydroelectric, or water, dams. Weknow much of that has to be relicensedover the next several decades, and thatlicensing process is broken or cum-bersome or unpredictable and verycostly.

While we are trying to incorporateall of the concerns and issues of manydifferent groups in retrofitting andmodernizing 40- and 50-year-old struc-tures, because the world around themand the wishes of that world havechanged dramatically, it should nottake 5 to 10 years and millions and mil-lions of dollars and a reduction of ca-pacity or productivity of that unit toget it relicensed.

We want to answer and adjust to theenvironmental concerns. At the sametime, it ought to be our desire to makethat unit more efficient, not less so,with new turbines and retrofits. Yet westruggle under that relicensing.

I have worked very closely with thechairman. We are awfully close to get-ting something, but I am not going toadd more problems to the current prob-lem. If we cannot get there, and the an-swer is to make it more difficult ormore complicated, I am simply goingto step back and say what we have gotis what we are going to have to have.

If the country wants to keep on downthis track of relicensing under phe-nomenally expensive and cumbersomeprocesses, tragically enough, so be it. Ihope, though, we can find a way out ofthis, to streamline it, improve it, makeit more predictable, balanced, andhopefully, less costly.

Nuclear energy is 20 percent of ourcurrent electrical production in thiscountry. If we believe in climatechange, if we believe there is an envi-ronmental problem out there andsomehow the gases that are producedby the energy sources today are help-ing complicate or exacerbate thatproblem of climate change, then weought to be for the cleanest source ofenergy possible to fill up that energybasket that is now in deficit and grow-ing more empty.

I believe one way of doing that isthrough nuclear energy and creatingnew prototype reactors that by publicperception and reality are safer, moreproductive, less costly to build, andless costly to operate. We ought to beabout doing that. I think we are goingto reauthorize the Price-Anderson Actthat deals with the liability of the de-velopment and the operation of thosefacilities. That is something we oughtto do.

We ought to be encouraging all formsbecause my guess is a pretty safe one:

CONGRESSIONAL RECORD — SENATE S1523March 5, 2002That if we want an increasingly clean-er environment, probably over the nextdecade or two nuclear energy, as a per-centage of the total supply, should notbe 20 percent, it ought to be 25 or 30percent. It most assuredly ought notdrop below where it is. It ought to ad-vance well beyond where it is.

I think most realistic thinkers wouldrecognize the importance of energy asit relates to nuclear and the cleannessof that form of generation. We ought toapply the greatest technology we haveto that.

I mentioned, in the context of nu-clear energy, climate change. SenatorHAGEL and I have worked for the last 4or 5 years on that. So has the Senatorfrom New Mexico. So has the Senatorfrom Alaska. Many have become in-volved in that debate. The two Sen-ators from Oklahoma have been in-volved in it. Why? Because we do notwant a hysterical policy that shuts theworld down in panic. We want a policythat would allow us to grow andproduce and prosper while making ourworld cleaner.

The legislation the Senator from Ne-braska and I have crafted, that now inpart has been accepted by the Presi-dent as some of his forward thinkingnational climate change policy, oughtto be incorporated in this bill, ought tobe a full part of it. We are working toget there. Frankly, it is possible to getthere.

In conclusion, I began to debate en-ergy issues well over a decade ago. Ihave been involved on energy issues inthe Senate for 12 years. I am embar-rassed to say that during that period oftime we have not built a comprehen-sive energy policy. I used to select dif-ferent forms of energy and suggest thatthis one ought not go forward, butmaybe this one should. I must say, Iam no longer there, not at all. I believewe ought to be investing in all forms ofenergy and all forms of conservation.

We ought to give the public a choicebetween green power or other power.Let them decide in the marketplace ifthat is the prudent selection for theiruse. Clearly we ought to have as muchpower as we can produce, recognizingthat by definition, hydrocarbon use ison the decline. I do believe, most sin-cerely, my grandchildren will be driv-ing electric cars. And they will be high-ly efficient and very capable of trav-eling long distances. I also know theywill have to have a place to plug themin to put storage of electricity in thebattery, or the hydrogen fuel cell thatwill be built within the car that willdrive the electric motors that propelthe car. That in itself is a hydrocarbon.

The cycle is not yet complete be-cause we have not used all of our re-sources to produce those kinds of ener-gies. Yes, I voted for a lot of money inthe last decade for new technology. Iwill vote for more. I will vote for taxcredits and incentives for wind and eth-anol and biomass because our energybasket ought to be full and runningover instead of sitting here and nit-

picking and playing the political gameof a little of this but not this; we can’tdo this, but we ought to do this; not inmy backyard but in somebody else’sbackyard. Shame on us for that atti-tude.

It is the consumer, it is the taxpayer,it is the economy itself, it is the veryjobs that drive the workforce of thiscountry that are at stake.

We ought not be so selective. Wewant an abundant energy supply, andwe ought to be prudent in the develop-ment of the policy that drives it andproduces it.

What I am telling my colleagues is, Iam prepared to vote for it all: Lots ofconservation, LIHEAP, lots of newtechnology, the tax credits necessaryto drive it, exploring ANWR in Alaska,exploring other public lands in our Na-tion. I don’t want to go home and saythat the Congress got bogged down inpolitics and failed, and your gas bill isgoing to double over the decade or tri-ple or quadruple, and your energy costsare going to become an ever-increasingpart of your household or businessbudget because politically we didn’tget the job done.

Shame on us if that is the case.Our job is to be responsible in pro-

ducing a quality, energy policy for theNation, not the political, environ-mental nit-picking that is going on atthis moment.

I hope the real job that is done hereis to offer the amendments to craft abill that will produce something that isphenomenally clean, abundant and al-lows our technology to lead the rest ofthe world into a clean energy environ-ment that is abundant for all and inex-pensive for everyone along with it.

I yield the floor.The PRESIDING OFFICER (Mr.

CORZINE). The Senator from Nevada.Mr. REID. Mr. President, I did not

mean in any way to speed the Senatorfrom Idaho up on his statement. Iwanted to announce on behalf of themajority leader there will be no votestonight.

I also ask unanimous consent thatSenator DURBIN now be recognized and,following that, Senator BURNS be rec-ognized.


The Senator from Illinois.Mr. DURBIN. Mr. President, I thank

the majority whip from Nevada for hisunanimous consent request. I appre-ciate the opportunity to be here tospeak on this issue which is so criticalto the future of America.

Let me begin by commending theSenator from New Mexico, Mr. BINGA-MAN, as well as our majority leader,Senator DASCHLE, for bringing this billto the floor and keeping a promise thatthey would. We have been challengedfor more than a year by the Bush ad-ministration and by Republicans in theSenate to bring an energy bill forward.Senator DASCHLE made it clear hewould do that. But for a delay in theprevious bill on election reform, it

might have taken place as early as lastweek. He certainly kept his word.

I thought it was interesting thatsome of those from the other side ofthe aisle came to the Chamber and ac-tually criticized the process. If I under-stand their argument, they think webrought it to the floor too fast. Theythink it should have gone throughcommittee, should have been subject toa lot of amendments and changes.Quite honestly, if you look at theprecedent of what has happened in theSenate, Senators DASCHLE and BINGA-MAN have brought this bill to the Sen-ate in the same manner the Republicanleadership did 2 years ago.

They have given ample opportunityfor amendments and debate. That isthe way it should be. I have always feltthat in a legislative body, you give ityour best argument and present it toyour colleagues and have a vote andmove on, ultimately to final passage. Ihope that is what happens with thisimportant bill.

This is the fourth time we have de-bated energy policy in America since1973. The last time was 10 years ago.When you look at what has happenedto us in recent times, you can under-stand how timely this debate is: Wefaced spikes in oil prices in the springof 1999 due to an OPEC decision to re-duce production; the winter of 1999–2000home heating problems caused by acombination of unexpected weather,depleted supply, and rising costs; gaso-line price spikes in the Midwest in thesummer of 2000; rolling blackouts inCalifornia in early 2001 marked thefirst deliberate energy cutoff sinceWorld War II.

These events were set against thebackdrop of strong economic growth inthe mid to late 1990s; increases in en-ergy consumption to keep this econ-omy moving forward; deregulation; ad-vances in efficiency; and evolving de-fense and foreign policy.

As we debate this issue, our attentionis focused to that part of the worldagain that is the source of a great por-tion of our energy. We have to under-stand that this debate is taking placein the context of an American depend-ence on foreign oil. I believe it is naiveto think that in the near term we willbe completely independent when itcomes to energy sources. I wish I couldsay otherwise. Even with our best ef-forts, we are going to have to rely onsome imported fuel.

I hope we can make progress in thisbill in moving us forward toward lessdependence on foreign energy sources.The way we approach that is the cruxof this debate.

On the other side, the Bush adminis-tration and many Republicans—not allbut many—in Congress believe thatproduction is the way to answer this.They think if we can just find sourcesof production that are adequate, wecan take care of America’s future en-ergy needs. I won’t quarrel with themath, but I will quarrel with the pol-icy.

CONGRESSIONAL RECORD — SENATES1524 March 5, 2002I do have to question whether or not

we want to embark on a policy thatreally focuses on the production of en-ergy as the foundation and cornerstoneof our energy policy. That, in my pointof view, is thinking that dates back tothe last century and before. We shouldbe thinking in smarter terms aboutways to not only create energy but toconserve energy in a fashion that is notonly going to give us energy, move ustoward energy independence, but isalso kind to our environment.

That is the second half of this equa-tion. It is not just about our economyand energy as the fuel for the economy,but the impact of our use of energy onthe environment we live in, the air webreathe, the streams and rivers thatmay be polluted, as well as the wholequestion of whether or not we aregoing to for once invade some wilder-ness areas to try to drill for oil andgas.

Let me summarize what the bill says,as has been mentioned in the course ofthe debate. It tries to address ensuringadequate and affordable supplies of en-ergy from renewable sources as well asoil, gas, coal, and nuclear. This ele-ment of the bill is important to speakabout for a moment.

This bill creates goals and incentivesto increase the amount of U.S. elec-tricity produced from renewable en-ergy sources.

This is an area of great potential inthe United States. We are seeing, forexample, alternative and renewablefuels being used to a greater extent insome parts of our country than others.California is an example. I am told that12 to 13 percent of the electricity gen-erated in California comes from renew-able sources. Those include a lot ofthings—geothermal, wind power, andothers. We should really embark, aspart of this bill, on a national policy ofencouraging these renewable sources.They not only lessen dependence onforeign energy source, but they arealso kind to the environment. Solar,wind, geothermal, and biomass are allmentioned in the bill as avenues for usto explore in the use of renewable en-ergy sources. We also need a renewableportfolio standard to increase theamount of renewable energy providedby electricity retailers.

Let me show you a chart that talksabout renewable sources for electricityconsumption. If we do nothing, thelower line here represents the currentrenewable sources in America as a peraverage total. You see it is slightlymore than 2.5 percent. This bill movesus forward. By 2020, we are at leastover 10 percent. We will debate, in thecourse of this bill, an amendment bySenator JEFFORDS which would evenhave us at a higher level as a commit-ment to renewable energy sources. Thismakes sense, it is an important debate,and it will change our way of approach-ing energy—but change it in an envi-ronmentally sensible way.

We also need to expand the amountof ethanol and biodiesel used in motor

vehicles. This bill does it. It triples theamount that is going to be used inAmerica during the life of the bill.That is a big issue where I live because,living in the farm belt and being in anarea that is considered, I guess, the‘‘OPEC of ethanol,’’ we really havemajor ethanol production. But thegood news is there are other areas inthe country that are currently openingup ethanol production facilities.

Ethanol, of course is an alcohol fuelderived from grain, primarily fromcorn. It is a fuel that is kind to the en-vironment. It reduces pollution andhelps our farmers. I do have some bias,representing a farm State such as Illi-nois, but more demand for ethanol isgoing to create higher farm prices forcorn and reduce the need for Federalexpenditures in the farm program. It isa winning proposition.

I am really proud that this bill fo-cuses on ethanol and biodiesel andmakes a serious national commitmentto expanding it to 5 billion gallons by2012. We expedite the construction ofthe pipeline to bring natural gas fromAlaska to the lower 48. This doesn’t in-volve the Arctic National Wildlife Ref-uge (ANWR). It is a pipeline already inareas that have been vetted to be eco-nomically acceptable, environmentallyacceptable, and it doesn’t go into thewilderness areas. We increase funds tospeed up the permitting of new domes-tic oil and gas production.

I have heard executives from oil com-panies tell me: You don’t need to go toANWR; there are plenty of places thatare environmentally sound in theUnited States to turn to. ANWR is inthis debate because a lot of companieshave invested a lot of money in ANWR.They are being protected by some inthis Chamber who want to make surethey capitalize on that investment. Weought to think twice about that, and Iwill address that in a moment.

The bill extends permanent authorityto fill and operate the Strategic Petro-leum Reserve. This is a reserve of pe-troleum that is available in emergencycircumstances to the United States. Ithink it is important to fill it and haveit on hand when needed. You neverknow when you are going to face aninterruption in supply. The bill also in-vests in Research and Development inall fuels. That is when we exhaust thediscussion of ensuring the diversity ofenergy supplies.

We now move to the question of im-proving efficiency and productivity ofenergy transmission and use. I learned,by my experience in my home area, incentral Illinois, how important the na-tional grid is to electricity. There is alot that needs to be done to upgradethis grid and make certain it is reallynational in scope, so consumers canknow they have reliable sources for en-ergy supplies.

This bill—this legislation on theDemocratic side—protects reliabilityof the interstate electric grid and re-moves barriers to adding to the electricinfrastructure. It will provide con-

sumers with more transparent informa-tion and better information on energychoices. It requires higher fuel effi-ciency in future Federal purchases ofautomobiles and other vehicles andgreater energy efficiency in Federalbuildings. It helps State and local gov-ernments save energy in public schoolsand public housing. It sets new effi-ciency standards for commercial andconsumer products, including an in-crease in central air-conditioning effi-ciency by 30 percent, and enhance-ments to the Energy Star Program, toimprove product label information. Itincreases funding for the Low-IncomeHome Energy Assistance Program(LIHEAP) to help low-income familiesmake their homes more energy effi-cient.

I have seen the importance of thisprogram firsthand. I just left Chicago,which I am proud to represent in theSenate, where the weather was cold—zero degrees on Sunday night, with thewind chill bringing it down below zeroby about 22 degrees. I thought of allthe people who are living in homes thatare not adequately heated. I have vis-ited some of those homes and have seenpeople struggling to keep their babieswarm in a frigid atmosphere. LIHEAPprovides the basic necessities of homeheating and cooling. It also helps low-income families make homes more en-ergy efficient, and it is particularlyimportant for senior citizens.

Other things are part of this bill, butI want to move to one particular ele-ment that I think is very important forus to discuss, and that is the CorporateAverage Fuel Economy (CAFE) stand-ard. I was visited earlier today by oneof my close friends in the labor move-ment, who came to me and urged thatI oppose any increase in the fuel effi-ciency standards, fuel economy stand-ards for automobiles and other vehiclesin America. I really struggled in tryingto understand his point of view, but toput it in the context of what I think isan important element in this debate,the way I see it is this. In 1975, wemade a decision in America to basi-cally double the fuel efficiency of carsto 27.5 miles per gallon, and to do thatby 1985—a 10-year project.

At the time it was proposed—and Ihave seen quotes from the debate—automobile manufacturers said it wasphysically impossible, it could not beachieved without laying off auto work-ers across America, and that techno-logically we were going to sacrifice thesafety of cars in an effort to try to putthis new fuel economy standard inplace.

Well, we did it. We did it by 1985, andwe are better off for it. Think of thelevel of our dependence on energytoday had we not initiated that discus-sion in 1975.

But since 1985, we have been abso-lutely stuck in the mud when it comesto improving these fuel economy stand-ards. If we don’t take the issue of fuelefficiency seriously as part of this en-ergy debate, Congress should not be

CONGRESSIONAL RECORD — SENATE S1525March 5, 2002taken seriously, because if we cannotimprove the efficiency of vehicles inour country, frankly, all of the tech-nology we have demonstrated through-out our history is for nothing. I thinkwe have the capacity to do it.

I have to tell you that it is somesource of embarrassment to me that,time and again, we are two steps be-hind automobile manufacturers over-seas—particularly those in Japan—when it comes to new technology forautomobiles and other vehicles, tomake them cleaner and safer. There isabsolutely no excuse. We have thegreatest engineers in the world. Wehave great minds in Detroit and otherplaces. Why are we always two stepsbehind? Why would Honda and Toyotabe the first companies to the marketwith these hybrid automobiles thatoffer 60 to 70 miles per gallon, whileDetroit is still in a concept car andthey hope by next year they might beable to offer the first vehicle?

During the Clinton administration,President Clinton and Vice PresidentGore said: We are prepared to basicallylook the other way on antitrust en-forcement to give the Big Three auto-makers a chance to sit down, work to-gether, and come out with a fuel-effi-cient car. This was the common com-plaint: Oh, we could do it, but as soonas we talked to one another, the De-partment of Justice would be on ourbacks. The Clinton-Gore administra-tion said: Have no fear. Move forward.

Nothing happened. We sit here todaystill looking for that breakthrough inautomobile technology. Quite honestly,this bill is going to move us forward interms of fuel economy. I am going tosupport it. I hope to explain to myfriends in labor as well as those work-ing for the Big Three that if we don’tinclude fuel efficiency and fuel econ-omy in this bill, this bill is not worththe effort. If we don’t do this, we aregoing to find ourselves continuing tobe dependent on finding new sources offossil fuels around the world and in theUnited States.

We are conceding the fact we aregoing to be so hungry for oil to fuelthese gas guzzler cars on the highwaysthat we are prepared to drill almostanywhere. Already some are saying:Let’s go into wilderness areas in Alas-ka; we have no place else to turn. Whatis next? The Mall? Central Park? Yo-semite?

Frankly, we have to look at our re-sponsibility in this country as part ofthis debate. It is a mistake to believewe can sit here and tell the Americanpeople that we can be more fuel effi-cient and have a sensible energy policythat will not involve their commit-ment and their sacrifice.

If we look at the highways of Amer-ica 10 years from now and see cars liketoday, or even bigger vehicles, we havefailed. We have failed because, frankly,we are conceding that there is abso-lutely nothing we can do in energy pol-icy that will change the habits andtastes of Americans and move us to-ward a more responsible course.

In this time when we are waging warand Americans are being killed over-seas because of terrorism, when we arefocusing on the Middle East and its in-stability, is it too much to ask the peo-ple of this country to join us in a col-lective discussion and debate aboutwhat we can do as individuals, busi-nesses, and families to come up withmore efficient vehicles? I do not thinkit is.

Americans are prepared to sacrificewith the right leadership if they be-lieve the goals are right and honest. Ibelieve these goals are. More fuel effi-ciency for our vehicles means less de-pendence on foreign energy sources andless pollution.

Let me give a comparison about whatconservation means as opposed to someof the alternatives that have been sug-gested. This is a chart which I thinktells an interesting story. Take a lookat what this bill does in terms of sav-ing millions of barrels per day of petro-leum. In the industrial and home effi-ciency savings of this bill, look at thesavings from the current debate time,2002, to the year 2030. There is a sub-stantial increase in the industrial andhome efficiency savings area thatbrings us ultimately to a savings ofmillions of barrels per day. The largestpart is in vehicle savings.

In other words, taking the basic ele-ments of this bill, these are the mil-lions of barrels we will save per daywith the fuel efficiency of the Binga-man-Daschle bill. There are those whosay we do not need to do that; what wereally need to do is drill in the ArcticNational Wildlife Refuge, a wildernessarea.

Mr. MURKOWSKI. Mr. President, Iwonder if my friend will yield for aquestion.

Mr. DURBIN. I will be happy to yieldfor a question in a moment.

This chart indicates what we canhope to bring out of the Arctic Na-tional Wildlife Refuge. The chart maybe sitting too low to see because it isway down on the chart. I want to makesure that those who are following thisdebate with rapt attention notice thaton the amount we hope to glean fromthe Arctic National Wildlife Refuge,even if we voted today to start it, wewill not see the first barrel of oil com-ing out of there until 2009. Look at howlittle comes out. This larger amount iswhat we can achieve with efficiency.This smaller amount is what we are de-bating in a wilderness and refuge area.We should make this commitment partof our energy policy. Why do we haveto turn to an area which we declared,as part of our national policy, wouldremain a wilderness as God created it,bring in the trucks and all of the pipe-lines and everything that is necessary,and risk the loss of wildlife and chang-ing the face of that area forever, when,in fact, if we take a responsible courseon vehicle fuel efficiency, as well as in-dustrial and home efficiency, the sav-ings far outweigh what we could pos-sibly glean from this Arctic NationalWildlife Refuge?

I will be happy to yield to my col-league from Alaska.

Mr. MURKOWSKI. Mr. President, Inoted the reference by the Senatorfrom Illinois several times to the issueof wilderness. I wonder if he under-stands the status of the area under con-sideration in the amendment that willbe offered by various Members relativeto opening up ANWR.

Mr. DURBIN. I certainly have heardmany descriptions. I will let my col-league from Alaska explain it.

Mr. MURKOWSKI. Let me refer tothe statements that have been made bythe Senator from Illinois relative tothis being a wilderness, to this being arefuge. Clearly, there are distinctions.I would stand with the Senator from Il-linois if there were any effort to openoil and gas exploration in wildernessareas of my State.

The Senator from Illinois indicatedthere were proposals to even go intothe wilderness in Alaska. I know of nosuch proposals to drill oil and gas inwilderness. As a matter of fact, the 1002area is a refuge. As the Senator fromIllinois knows, we have drilling in nu-merous refuges. We have about 41 ref-uges in the United States where wedrill for oil and gas. They are in vir-tually every State. As a matter of fact,I think there are one or two in Illinois.

I encourage my friend from Illinoisto not mix metaphors because wilder-ness is wilderness. We do not drill inwilderness areas. We are not proposingwe drill in wilderness areas. The 1002area is not a wilderness. It was setaside by Congress for specific action.

I am sure my friend from Illinoisknows that ANWR is about the size ofthe State of South Carolina. I am surehe knows there are 8.5 million acres ofthe 19 million acres that are designatedas wilderness, but that is not in thearea that is proposed to be opened forcompetitive leasing. That is 1.5 millionacres in the 1002 area.

I am sure my friend is also awarethat out of the 19 million acres, 9 mil-lion acres have been set aside in a sepa-rate refuge that is managed as a wil-derness which is not included.

It is important that we recognize re-alities and not mix metaphors becausethe Arctic Coastal Plain is certainlynot the last remaining wilderness inAlaska.

We have 56 million acres designatedwilderness that we defend. So please becareful when you mix these metaphorsbecause if you had been up there tolook at it, you would have a differentappreciation.

Mr. DURBIN. I would like to reclaimmy time.

The PRESIDING OFFICER. The Sen-ator from Illinois has the floor.

Mr. DURBIN. I think I have beengenerous in allowing the Senator to in-terrupt this presentation.

Mr. MURKOWSKI. I was not inter-rupting. I was responding and asking aquestion about metaphors. I think weshould be very careful not to misleadthe public.

CONGRESSIONAL RECORD — SENATES1526 March 5, 2002Mr. DURBIN. It is very gracious of

the Senator from Alaska to help mewith my metaphors. I thank the Sen-ator from Alaska. I stand corrected.The use of the word ‘‘wilderness’’ is in-appropriate. It is the Arctic NationalWildlife Refuge.

I do believe it is somewhat speciousto argue it is only the size of SouthCarolina. Three Mile Island was onlythe size of this Capitol Building, andwhen you look at some of the oil spillsI have seen, when I went up to seePrince Edward Sound, the size of thattanker may not have been much longerthan half the size of this building, butwhat it did when it ruptured causeddamage far beyond the size of the tank-er.

When the Senator says it is just thesize of South Carolina, I think, frank-ly, that understates the potential dam-age which could be done to the environ-ment and to the wildlife if we are notcareful.

Plus, I have to tell my colleagues, Ibelieve it is shortsighted and it is notthe wisest and most prudent approachto say that if we are going to have anykind of energy independence, then wehave to drill in a national wildlife ref-uge in Alaska.

There are so many other activitieswe can do by way of conservation, effi-ciency, and drilling for oil and gas inenvironmentally sound areas thatwould absolve us from getting into thecontroversy of going into this wildliferefuge. I think, frankly, that is awrongheaded approach. I disagree withthe Senator from Alaska. I was happyto yield him the time, and he made hispoint.

In concluding this presentation, letme say the following: I hope when weget into this debate about fuel econ-omy and fuel efficiency standards thatwe can find a way to deal with some ofthe more vexing aspects of the prob-lem. Part of this has to do with creditswe created years ago rewarding someautomobile manufacturers for thetypes of vehicles they made and not re-warding others.

The building up of these credits hascreated a secondary, but very impor-tant, argument which should be ad-dressed as part of this energy policy de-bate.

What I think we should require of allmanufacturers that want to sell in theUnited States, domestic and foreign, isthat they demonstrate a real commit-ment to improved fuel efficiency oftheir vehicles.

Recently, one of the engineers in thecity of Chicago at the Illinois Instituteof Technology wrote an article for theChicago Tribune in which he had a fewthoughts about the whole discussion ofhydrogen-fuel-cell-powered vehicles. Itis an interesting concept, he said, butat least 10 years away, maybe longer;we should continue to explore, but,frankly, do not hold it out as the HolyGrail; and that just because of the pos-sibility of hydrogen-fueled cars, wereally should not avoid addressing fuel

efficiency and economy in today’sautomobiles.

He said at the end of the article: Ihope the Senators from Illinois readthis article and give me a call.

So I did. I said to the Professor: Whatis it you would suggest we do?

He said: There are things that canand should be done now to improve thefuel efficiency of vehicles. Why Detroitand other manufacturers are holdingback on it, I do not understand.

He gave us one illustration. A largerbattery in a vehicle allows one to turnto more electronic equipment in thatvehicle as opposed to mechanical andhydraulic, which takes weight off thevehicle but still performs the valuablefunction. That seems sensible to me.

He says a heavier battery wherethere is electronic-powered brakes, forexample, could save 2 miles per gallon,and you think, well, that is a prettysensible thing to do.

He also said looking to newer mate-rials that are safe materials that canbe used in vehicles that do not add toweight but still provide protection, allof these things have to be on the table.They will not be taken seriously by De-troit unless and until we are seriousabout fuel economy standards. We willcontinue to play the role of second bestin this automobile technology race un-less and until Congress has the willing-ness and the political courage to stepup and say to Detroit and all auto-mobile and truck manufacturers acrossAmerica: We have to do better.

When I asked one of the critics ofthis bill today what do they think wecan achieve, what is realistic when itcomes to fuel economy, he said: I thinkwe can achieve a 10-percent improve-ment in fuel economy by the year 2019.

I said: So we could go from 271⁄2 milesper gallon to perhaps 31 miles per gal-lon by the year 2019?

Yes, he said.So I said: From 1985 to 2019 the best

we could achieve was 3 miles per gal-lon?

I do not buy that. I do not believethat. I really believe we proved be-tween 1975 and 1985 that given the rightincentives, we can do a lot better thanthat, and I sincerely hope those whoare involved in this debate will notview it as a political and legal strugglebut as a technological challenge, be-cause once challenged, I think our sci-entists and engineers can rise to thatoccasion.

So I commend my colleague fromNew Mexico, Senator BINGAMAN, for hisleadership on this bill, as well as themajority leader, Senator DASCHLE, forjoining him in this effort. I look for-ward to this debate because I believe itis timely. And I am hoping that as a re-sult of it we will have a reliable, stablesupply of energy; we will have con-servation policies that make sense forour future; we will move toward renew-able fuels which have such great poten-tial; we will find ourselves using alter-native fuels that, frankly, have beenvaluable to us and can be used even

more. That is part of a balanced debatethat does not have us drilling in wild-life refuges—not wilderness, as SenatorMURKOWSKI has corrected me—andareas that, frankly, should be the lastplace, not the first place, we turn towhen we are desperate for energy, espe-cially when we have a lot of options wecan consider in terms of energy effi-ciency.

I yield the floor.Mr. BINGAMAN. Mr. President, I

know the next order of business is tohear from the Senator from Montana,Mr. BURNS. I do not know if he is avail-able to give his statement at thispoint. I think possibly we should gointo a quorum call and try to locatehim.

I suggest the absence of a quorum.The PRESIDING OFFICER. The

clerk will call the roll.The legislative clerk proceeded to

call the roll.Mr. MURKOWSKI. Mr. President, I

ask unanimous consent that the orderfor the quorum call be rescinded.


Mr. MURKOWSKI. Mr. President, Iam not going to speak long, but I wantto make a point to my colleagues, andparticularly their staffs, that there arecertain aspects of this legislation thatare very technical and certain aspectsreflect on the knowledge that obvi-ously we have in our own States, and Irespect that. I want to put my col-leagues on notice we are going to fol-low the statements very closely and wewill respond in rebuttal to obvious in-accuracies relative to statements thatare being made, and that is in the spir-it of simply accuracy and factual infor-mation that I think is necessary toportray and project indeed the impor-tance of having factual information be-fore the Members of this body as we de-liberate the bill.

I see the Senator from Montana. Ifthere is no objection from my friendfrom New Mexico, I yield to the Sen-ator from Montana.

The PRESIDING OFFICER. The Sen-ator from Montana is recognized underthe previous order.

Mr. BURNS. Mr. President, I thankmy good friend from Alaska, and Ithank the chairman of the Energy andNatural Resources Committee for thetime.

This is a great day. I think this is agood day. We have finally started talk-ing about legislation we hope will fa-cilitate a policy to make us a littlemore efficient but also increase supply,especially in case of emergency, and tokeep this economy rolling. The bill wehave today is 433 pages long, and it iswritten in legalese that most people,including me, do not easily understand.

As complicated as this bill is and ascomplicated as this process is, the re-ality is simple: This country needs acomprehensive energy policy.

Last fall, this country was shaken toits foundation. That experience hasmade each of us stand back and make

CONGRESSIONAL RECORD — SENATE S1527March 5, 2002decisions about what is really impor-tant in our lives. As I have traveledacross this country and in my homeState of Montana, I keep hearing thesame thing over again. Everybody inAmerica wants to protect their family,they want to provide a safe and secureliving environment, they want to pro-tect their loved ones from harm.

There is one thing that isundisputable. I represent an energyState. We have been in the productionof energy for a long time in Montana sowe know a little something about it.There is also something else that is in-disputable and that is that a com-prehensive energy policy is absolutelyparamount to American freedom. Letme put it this way: Energy security iseconomic security is national security.

If that magic word that goes acrossour television screen and across ourmind is ‘‘security,’’ we cannot separatethose three. Energy security is eco-nomic security is national security, sothat the decisions we make here in theSenate will affect and direct the livesof every single American, without ex-ception. The policy we set here on theSenate floor should ensure that energyis affordable, and that it is abundant.Affordable energy means businessesstay open and businesses prosper andpeople keep working. It means seniorcitizens who are on fixed incomes areable to pay their electricity bill at theend of the month without having togive up something else. It means some-one can fill up their car with gas anddrive their kids to school; fill up atruck and deliver goods across thecountry without breaking the bank;and, yes, to my State, crank up thecombines, harvest a crop and put an-other one in, without fearing the reper-cussions of high fuel prices.

Every one of us will be affected nomatter how basic the level. So we haveto answer a lot of questions. How do weget dependable, affordable supplies ofenergy? That will be the focus of thisdebate, and the policy that carries usnot through my generation but also thenext generation and the next. And thatis about the time we will have anotherpolicy change because technology andcircumstances will change.

We have heard some of my colleaguesclaim Americans use too much energy,that we are greedy, that we use morethan our fair share of the world’s sup-ply of energy. Would those same peoplestand up and argue that the UnitedStates produces more than its fairshare of goods and services? Wouldthey say we have an oversupply ofAmerican ingenuity?

Are we producing more computers,more cars, more agricultural goodsthan we should? I don’t think so. Idon’t think the hard-working peoplewho produce those goods think so ei-ther. We can do that because we aregood at it and because we have usedour energy with the best conservationtechnology known until this date.

Let’s go one step beyond the eco-nomic security that affordable energy

provides. Think about the security itprovides this country when we improveour ability to produce different kindsof energy domestically. For example,this country buys 56 percent of its oilfrom other countries. Think back tothe 1970s when we had the lines at thegas stations. Then it was around 35 or36 percent from foreign countries. Idon’t like that kind of vulnerability.Much of that oil is produced from coun-tries or producers that have very hon-est intentions, but, I will remind Amer-icans, not all of them and not all of it.

Every drop of oil we produce domesti-cally is one that we do not buy fromSaddam Hussein. Every barrel boughtfrom a rogue nation could mean abomb built to hurt this country. Ithink it is about time we turn off thespigot of terrorist oil.

In this debate we will start talkingabout the Alaska National WildlifeRefuge. While at times the point maybe confused, like in the colloquy thatjust preceded me—ANWR was a wildliferefuge created by law and that lawgave express permission or grant todrill within parts of it. I can think ofno other public land that was createdwith that express intention and law.

I would like to point out that the de-bate over ANWR will boil down towhether we open up 2,000 acres for ex-ploration in Alaska. It will be exam-ined. It will be turned inside and out,over and over again. We will debatethis a long time.

I say to my good friend from Okla-homa, whose State is an energy pro-ducer like my state of Montana, thatsince 1997, in my State alone, the Fed-eral Government and the executivebranch have managed to shut off 727,000acres from gas and oil development inMontana in two different decisions.There was no congressional discussioneither time.

I agree with open debate and I amglad to be a part of this process, but Iwonder why we only get to do it whenwe want to open Federal land, and notwhen we shut it off. Why is it that amidlevel manager in the Forest Servicecan make the decision to close 350,000acres, and we don’t hear a whimper orwhisper on the Senate Floor.

Because of a decision made in a fed-eral bureaucracy or through executiveorder, it has been decided we are goingto take that land out of production.That denies my State the ability toproduce energy for a country that real-ly needs it, and the jobs it provides andthe revenue it provides to my State tobuild schools, build roads, provide gov-ernment services.

Of course, this debate will extend be-yond domestic oil and gas production,and it should. We are developing excel-lent technology. We are tapping re-sources to create energy from newsources. I heard mention today aboutrenewables. They want to use thermalactivity.

We live next to an area that has morethermal activity than any place in ourcountry: Yellowstone Park. There is

thermal potential all the way aroundit. You just try to develop it. It cannotbe done because you have to cross fed-eral land to get there, which makes ab-solutely no sense.

We will talk about fuel cells. We willtalk about biomass. We will talk aboutethanol. We will talk about wind.Those are only a few of the opportuni-ties we have to use our resources innew ways.

I am proud to support alternativeand renewable energy, and will con-tinue to do so. But we can’t short-change our energy needs today by fo-cusing our efforts on alternative en-ergy alone. Many of the technologiesare promising but are still in the devel-opmental and very expensive stages incomparison to our traditional energysources. By continuing to develop andencourage alternative fuels and createmarkets for those technologies, we canapproach this country’s energy futurewith optimism.

It is time we go to work. It is timewe debate those issues one by one. Butkeep in mind what I said at the begin-ning of this speech. I do not know of amilitary airplane we fly that doesn’tburn oil-based fuel. And if somethingreally bad happens in this country, Itell you something: The fire truck thatshows up and the emergency vehiclewill burn gasoline. In order to fightthis great battle against terrorism andagainst people who would erode ourfreedoms, who work in the shadows,and who are a faceless enemy, theweapons we need still burn gasoline.

We have to think about the Americanpeople and their safety and their secu-rity. What we are asking in this is apolicy that will develop those newtechnologies. But we cannot turn ourbacks on the demand for the energysources we have used for so long in thiscountry. Let us work to give the Amer-ican people what they need—a safe,steady energy supply that will ensureeconomic stability and national secu-rity.

I thank the Chair. I yield the floor.f

UNANIMOUS CONSENT REQUESTMr. DASCHLE. Mr. President, I won-

der if the Senator would yield verybriefly so we might propound a quickunanimous consent request.


Mr. DASCHLE. Mr. President, I askunanimous consent the majority lead-er, following consultation with the Re-publican leader, may at any time turnto the consideration of H.R. 2356, thecampaign finance reform legislation;that there be 4 hours of debate equallydivided and controlled between the twoleaders or their designees; that noamendments or motions be in order tothe bill; that upon the use or yieldingback of time the bill be read the thirdtime, the Senate vote on passage of thebill, with this action occurring with nofurther intervening action or debate.

Mr. MCCONNELL. Reserving theright to object, and I will object, let me

Documents

March 5, 2002 CONGRESSIONAL RECORD SENATE S1441 · 3/5/2002 · Renewable energy study. Sec. 407. Federal Power Marketing Adminis-trations. Sec. 408. Feasibility study of combined