revision of the plan; and
                                    ``(V) a description of measures that
                                will be taken to determine the
                                availability of assistance from other
                                relevant Federal resources and programs.
            ``(3) Amendment.--Any amendment to a plan submitted under
        paragraph (1) shall be--
                    ``(A) developed in accordance with this subsection;
                and
                    ``(B) submitted to the Secretary for approval or
                disapproval under paragraph (4).
            ``(4) Procedure.--Not <<NOTE: Deadline.>> later than 90 days
        after the date on which a plan or amendment to a plan is
        submitted under paragraph (1) or (3), the Secretary shall
        approve or disapprove the plan or amendment.

    ``(d) Authorized Uses.--
            ``(1) In general.--A producing State or coastal political
        subdivision shall use all amounts received under this section,
        including any amount deposited in a trust fund that is
        administered by the State or coastal political subdivision and
        dedicated to uses consistent with this section, in accordance
        with all applicable Federal and State laws, only for one or more
        of the following purposes:
                    ``(A) Projects and activities for the conservation,
                protection, or restoration of coastal areas, including
                wetland.
                    ``(B) Mitigation of damage to fish, wildlife, or
                natural resources.
                    ``(C) Planning assistance and the administrative
                costs of complying with this section.
                    ``(D) Implementation of a federally-approved marine,
                coastal, or comprehensive conservation management plan.
                    ``(E) Mitigation of the impact of outer Continental
                Shelf activities through funding of onshore
                infrastructure projects and public service needs.

[[Page 119 STAT. 744]]

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

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The <<NOTE: Contracts.>> Secretary shall enter into
an arrangement with the National Academy of Sciences under which the
National Academy of Sciences shall conduct a study of the short-term and
long-term availability of skilled workers to meet the energy and mineral
security requirements of the United States.

    (b) Inclusions.--The study shall include an analysis of--
            (1) the need for and availability of workers for the oil,
        gas, and mineral industries;
            (2) the availability of skilled labor at both entry level
        and more senior levels; and
            (3) recommendations for future actions needed to meet future
        labor requirements.

    (c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report that describes
the results of the study.

SEC. 386. <<NOTE: 42 USC 15941.>> GREAT LAKES OIL AND GAS DRILLING BAN.

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

SEC. 387. <<NOTE: Deadline. 42 USC 13368 note.>> FEDERAL COALBED METHANE
            REGULATION.

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

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by
adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-way for Energy and Related
Purposes.--
            ``(1) In general.--The Secretary, in consultation with the
        Secretary of the Department in which the Coast Guard is
        operating and other relevant departments and agencies of the
        Federal Government, may grant a lease, easement, or right-of-way
        on the outer Continental Shelf for activities not otherwise
        authorized in this Act, the Deepwater Port Act of 1974 (33
        U.S.C. 1501 et seq.), the Ocean Thermal Energy Conversion

[[Page 119 STAT. 745]]

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

[[Page 119 STAT. 746]]

                    ``(I) prevention of interference with reasonable
                uses (as determined by the Secretary) of the exclusive
                economic zone, the high seas, and the territorial seas;
                    ``(J) consideration of--
                          ``(i) the location of, and any schedule
                      relating to, a lease, easement, or right-of-way
                      for an area of the outer Continental Shelf; and
                          ``(ii) any other use of the sea or seabed,
                      including use for a fishery, a sealane, a
                      potential site of a deepwater port, or navigation;
                    ``(K) public notice and comment on any proposal
                submitted for a lease, easement, or right-of-way under
                this subsection; and
                    ``(L) oversight, inspection, research, monitoring,
                and enforcement relating to a lease, easement, or right-
                of-way under this subsection.
            ``(5) Lease duration, suspension, and cancellation.--The
        Secretary shall provide for the duration, issuance, transfer,
        renewal, suspension, and cancellation of a lease, easement, or
        right-of-way under this subsection.
            ``(6) Security.--The Secretary shall require the holder of a
        lease, easement, or right-of-way granted under this subsection
        to--
                    ``(A) furnish a surety bond or other form of
                security, as prescribed by the Secretary;
                    ``(B) comply with such other requirements as the
                Secretary considers necessary to protect the interests
                of the public and the United States; and
                    ``(C) provide for the restoration of the lease,
                easement, or right-of-way.
            ``(7) Coordination and consultation with affected state and
        local governments.--The Secretary shall provide for coordination
        and consultation with the Governor of any State or the executive
        of any local government that may be affected by a lease,
        easement, or right-of-way under this subsection.
            ``(8) Regulations.--Not <<NOTE: Deadline.>> later than 270
        days after the date of enactment of the Energy Policy Act of
        2005, the Secretary, in consultation with the Secretary of
        Defense, the Secretary of the Department in which the Coast
        Guard is operating, the Secretary of Commerce, heads of other
        relevant departments and agencies of the Federal Government, and
        the Governor of any affected State, shall issue any necessary
        regulations to carry out this subsection.
            ``(9) Effect of subsection.--Nothing in this subsection
        displaces, supersedes, limits, or modifies the jurisdiction,
        responsibility, or authority of any Federal or State agency
        under any other Federal law.
            ``(10) Applicability.--This subsection does not apply to any
        area on the outer Continental Shelf within the exterior
        boundaries of any unit of the National Park System, National
        Wildlife Refuge System, or National Marine Sanctuary System, or
        any National Monument.''.

    (b) Coordinated <<NOTE: 43 USC 1337 note.>> OCS Mapping
Initiative.--
            (1) In general.--The Secretary of the Interior, in
        cooperation with the Secretary of Commerce, the Commandant of
        the Coast Guard, and the Secretary of Defense, shall establish

[[Page 119 STAT. 747]]

        an interagency comprehensive digital mapping initiative for the
        outer Continental Shelf to assist in decisionmaking relating to
        the siting of activities under subsection (p) of section 8 of
        the Outer Continental Shelf Lands Act (43 U.S.C. 1337) (as added
        by subsection (a)).
            (2) Use of data.--The mapping initiative shall use, and
        develop procedures for accessing, data collected before the date
        on which the mapping initiative is established, to the maximum
        extent practicable.
            (3) Inclusions.--Mapping carried out under the mapping
        initiative shall include an indication of the locations on the
        outer Continental Shelf of--
                    (A) Federally-permitted activities;
                    (B) obstructions to navigation;
                    (C) submerged cultural resources;
                    (D) undersea cables;
                    (E) offshore aquaculture projects; and
                    (F) any area designated for the purpose of safety,
                national security, environmental protection, or
                conservation and management of living marine resources.

    (c) Conforming Amendment.--Section 8 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337) is amended by striking the section heading
and inserting the following: ``Leases, Easements, and Rights-of-way on
the Outer Continental
Shelf.--''.
    (d) Savings Provision.--Nothing <<NOTE: 43 USC 1337 note.>> in the
amendment made by subsection (a) requires the resubmittal of any
document that was previously submitted or the reauthorization of any
action that was previously authorized with respect to a project for
which, before the date of enactment of this Act--
            (1) an offshore test facility has been constructed; or
            (2) a request for a proposal has been issued by a public
        authority.

    (e) State <<NOTE: 43 USC 1337 note.>> Claims to Jurisdiction Over
Submerged Lands.--Nothing in this section shall be construed to alter,
limit, or modify any claim of any State to any jurisdiction over, or any
right, title, or interest in, any submerged lands.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

    Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et seq.) is
amended--
            (1) <<NOTE: 33 USC 2731.>> in section 5001(i), by striking
        ``September 30, 2012'' and inserting ``1 year after the date on
        which the Secretary, in consultation with the Secretary of the
        Interior, determines that oil and gas exploration, development,
        and production in the State of Alaska have ceased''; and
            (2) <<NOTE: 33 USC 2736.>> in section 5006(c), by striking
        ``October 1, 2012'' and inserting ``1 year after the date on
        which the Secretary, in consultation with the Secretary of the
        Interior, determines that oil and gas exploration, development,
        and production in the State of Alaska have ceased,''.

SEC. 390. <<NOTE: 42 USC 15942.>> NEPA REVIEW.

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

[[Page 119 STAT. 748]]

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

                   Subtitle H--Refinery Revitalization

SEC. 391. <<NOTE: 42 USC 15951.>> FINDINGS AND DEFINITIONS.

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

    (b) Definitions.--In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the
        Administrator of the Environmental Protection Agency.
            (2) State.--The term ``State'' means--
                    (A) a State;
                    (B) the Commonwealth of Puerto Rico; and

[[Page 119 STAT. 749]]

                    (C) any other territory or possession of the United
                States.

SEC. 392. <<NOTE: 42 USC 15952.>> FEDERAL-STATE REGULATORY COORDINATION
            AND ASSISTANCE.

    (a) In General.--At the request of the Governor of a State, the
Administrator may enter into a refinery permitting cooperative agreement
with the State, under which each party to the agreement identifies
steps, including timelines, that it will take to streamline the
consideration of Federal and State environmental permits for a new
refinery.
    (b) Authority Under Agreement.--The Administrator shall be
authorized to--
            (1) accept from a refiner a consolidated application for all
        permits required from the Environmental Protection Agency, to
        the extent consistent with other applicable law;
            (2) enter into memoranda of agreement with other Federal
        agencies to coordinate consideration of refinery applications
        and permits among Federal agencies; and
            (3) enter into memoranda of agreement with a State, under
        which Federal and State review of refinery permit applications
        will be coordinated and concurrently considered, to the extent
        practicable.

    (c) State Assistance.--The Administrator is authorized to provide
financial assistance to State governments to facilitate the hiring of
additional personnel with expertise in fields relevant to consideration
of refinery permits.
    (d) Other Assistance.--The Administrator is authorized to provide
technical, legal, or other assistance to State governments to facilitate
their review of applications to build new refineries.

                             TITLE IV--COAL

                 Subtitle A--Clean Coal Power Initiative

SEC. 401. <<NOTE: 42 USC 15961.>> AUTHORIZATION OF APPROPRIATIONS.

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

[[Page 119 STAT. 750]]

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

SEC. 402. <<NOTE: 42 USC 15962.>> PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under this
subtitle, a project shall advance efficiency, environmental performance,
and cost competitiveness well beyond the level of technologies that are
in commercial service or have been demonstrated on a scale that the
Secretary determines is sufficient to demonstrate that commercial
service is viable as of the date of enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In general.--In allocating the funds made
                available under section 401(a), the Secretary shall
                ensure that at least 70 percent of the funds are used
                only to fund projects on coal-based gasification
                technologies, including--
                          (i) gasification combined cycle;
                          (ii) gasification fuel cells and turbine
                      combined cycle;
                          (iii) gasification coproduction;
                          (iv) hybrid gasification and combustion; and
                          (v) other advanced coal based technologies
                      capable of producing a concentrated stream of
                      carbon dioxide.
                    (B) Technical milestones.--
                          (i) Periodic determination.--
                                    (I) In general.--The Secretary shall
                                periodically set technical milestones
                                specifying the emission and thermal
                                efficiency levels that coal gasification
                                projects under this subtitle shall be
                                designed, and reasonably expected, to
                                achieve.
                                    (II) Prescriptive milestones.--The
                                technical milestones shall become more
                                prescriptive during the period of the
                                clean coal power initiative.
                          (ii) 2020 goals.--The Secretary shall
                      establish the periodic milestones so as to achieve
                      by the year 2020 coal gasification projects able--
                                    (I) to remove at least 99 percent of
                                sulfur dioxide;
                                    (II) to emit not more than .05 lbs
                                of NO<INF>x</INF> per million Btu;
                                    (III) to achieve at least 95 percent
                                reductions in mercury emissions; and
                                    (IV) to achieve a thermal efficiency
                                of at least--
                                            (aa) 50 percent for coal of
                                        more than 9,000 Btu;
                                            (bb) 48 percent for coal of
                                        7,000 to 9,000 Btu; and
                                            (cc) 46 percent for coal of
                                        less than 7,000 Btu.
            (2) Other projects.--
                    (A) Allocation of funds.--The Secretary shall ensure
                that up to 30 percent of the funds made available under
                section 401(a) are used to fund projects other than
                those described in paragraph (1).

[[Page 119 STAT. 751]]

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

[[Page 119 STAT. 752]]

                shall take into account and make adjustments for the
                elevation of the site at which a project is proposed to
                be constructed.
                    (B) Applicability of milestones.--In applying the
                thermal efficiency milestones under paragraphs
                (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4) to projects that
                separate and capture at least 50 percent of the
                potential emissions of carbon dioxide by a facility, the
                energy used for separation and capture of carbon dioxide
                shall not be counted in calculating the thermal
                efficiency.
                    (C) Permitted uses.--In carrying out this section,
                the Secretary may give priority to projects that
                include, as part of the project--
                          (i) the separation or capture of carbon
                      dioxide; or
                          (ii) the reduction of the demand for natural
                      gas if deployed.

    (c) Financial Criteria.--The Secretary shall not provide financial
assistance under this subtitle for a project unless the recipient
documents to the satisfaction of the Secretary that--
            (1) the recipient is financially responsible;
            (2) the recipient will provide sufficient information to the
        Secretary to enable the Secretary to ensure that the funds are
        spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated or
        applied, as evidenced by statements of interest in writing from
        potential purchasers of the technology.

    (d) Financial Assistance.--The Secretary shall provide financial
assistance to projects that, as determined by the Secretary--
            (1) meet the requirements of subsections (a), (b), and (c);
        and
            (2) are likely--
                    (A) to achieve overall cost reductions in the use of
                coal to generate useful forms of energy or chemical
                feedstocks;
                    (B) to improve the competitiveness of coal among
                various forms of energy in order to maintain a diversity
                of fuel choices in the United States to meet electricity
                generation requirements; and
                    (C) to demonstrate methods and equipment that are
                applicable to 25 percent of the electricity generating
                facilities, using various types of coal, that use coal
                as the primary feedstock as of the date of enactment of
                this Act.

    (e) Cost-Sharing.--In carrying out this subtitle, the Secretary
shall require cost sharing in accordance with section 988.
    (f) Scheduled Completion of Selected Projects.--
            (1) In general.--In selecting a project for financial
        assistance under this section, the Secretary shall establish a
        reasonable period of time during which the owner or operator of
        the project shall complete the construction or demonstration
        phase of the project, as the Secretary determines to be
        appropriate.
            (2) Condition of financial assistance.--The Secretary shall
        require as a condition of receipt of any financial assistance
        under this subtitle that the recipient of the assistance enter

[[Page 119 STAT. 753]]

        into an agreement with the Secretary not to request an extension
        of the time period established for the project by the Secretary
        under paragraph (1).
            (3) Extension of time period.--
                    (A) In general.--Subject to subparagraph (B), the
                Secretary may extend the time period established under
                paragraph (1) if the Secretary determines, in the sole
                discretion of the Secretary, that the owner or operator
                of the project cannot complete the construction or
                demonstration phase of the project within the time
                period due to circumstances beyond the control of the
                owner or operator.
                    (B) Limitation.--The Secretary shall not extend a
                time period under subparagraph (A) by more than 4 years.

    (g) Fee Title.--The Secretary may vest fee title or other property
interests acquired under cost-share clean coal power initiative
agreements under this subtitle in any entity, including the United
States.
    (h) Data Protection.--For a period not exceeding 5 years after
completion of the operations phase of a cooperative agreement, the
Secretary may provide appropriate protections (including exemptions from
subchapter II of chapter 5 of title 5, United States Code) against the
dissemination of information that--
            (1) results from demonstration activities carried out under
        the clean coal power initiative program; and
            (2) would be a trade secret or commercial or financial
        information that is privileged or confidential if the
        information had been obtained from and first produced by a non-
        Federal party participating in a clean coal power initiative
        project.

    (i) Applicability.--No technology, or level of emission reduction,
solely by reason of the use of the technology, or the achievement of the
emission reduction, by 1 or more facilities receiving assistance under
this Act, shall be considered to be--
            (1) adequately demonstrated for purposes of section 111 of
        the Clean Air Act (42 U.S.C. 7411);
            (2) achievable for purposes of section 169 of that Act (42
        U.S.C. 7479); or
            (3) achievable in practice for purposes of section 171 of
        that Act (42 U.S.C. 7501).

SEC. 403. <<NOTE: 42 USC 15963.>> REPORT.

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

SEC. 404. <<NOTE: 42 USC 15964.>> CLEAN COAL CENTERS OF EXCELLENCE.

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

[[Page 119 STAT. 754]]

                    Subtitle B--Clean Power Projects

SEC. 411. <<NOTE: 42 USC 15971.>> INTEGRATED COAL/RENEWABLE ENERGY
            SYSTEM.

    (a) In General.--Subject to the availability of appropriations, the
Secretary may provide loan guarantees for a project to produce energy
from coal of less than 7,000 Btu/lb. using appropriate advanced
integrated gasification combined cycle technology, including repowering
of existing facilities, that--
            (1) is combined with wind and other renewable sources;
            (2) minimizes and offers the potential to sequester carbon
        dioxide emissions; and
            (3) provides a ready source of hydrogen for near-site fuel
        cell demonstrations.

    (b) Requirements.--The facility--
            (1) may be built in stages;
            (2) shall have a combined output of at least 200 megawatts
        at successively more competitive rates; and
            (3) shall be located in the Upper Great Plains.

    (c) Technical Criteria.--Technical <<NOTE: Applicability.>> criteria
described in section 402(b) shall apply to the facility.

    (d) Investment Tax Credits.--
            (1) In general.--The loan guarantees provided under this
        section do not preclude the facility from receiving an
        allocation for investment tax credits under section 48A of the
        Internal Revenue Code of 1986.
            (2) Other funding.--Use of the investment tax credit
        described in paragraph (1) does not prohibit the use of other
        clean coal program funding.

SEC. 412. <<NOTE: 42 USC 15972.>> LOAN TO PLACE ALASKA CLEAN COAL
            TECHNOLOGY FACILITY IN SERVICE.

    (a) Definitions.--In this section:
            (1) Borrower.--The term ``borrower'' means the owner of the
        clean coal technology plant.
            (2) Clean coal technology plant.--The term ``clean coal
        technology plant'' means the plant located near Healy, Alaska,
        constructed under Department cooperative agreement number DE-FC-
        22-91PC90544.
            (3) Cost of a direct loan.--The term ``cost of a direct
        loan'' has the meaning given the term in section 502(5)(B) of
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).

    (b) Authorization.--Subject to subsection (c), the Secretary shall
use amounts made available under subsection (e) to provide the cost of a
direct loan to the borrower for purposes of placing the clean coal
technology plant into reliable operation for the generation of
electricity.
    (c) Requirements.--
            (1) Maximum loan amount.--The amount of the direct loan
        provided under subsection (b) shall not exceed $80,000,000.
            (2) Determinations by secretary.--Before providing the
        direct loan to the borrower under subsection (b), the Secretary
        shall determine that--
                    (A) the plan of the borrower for placing the clean
                coal technology plant in reliable operation has a
                reasonable prospect of success;

[[Page 119 STAT. 755]]

                    (B) the amount of the loan (when combined with
                amounts available to the borrower from other sources)
                will be sufficient to carry out the project; and
                    (C) there is a reasonable prospect that the borrower
                will repay the principal and interest on the loan.
            (3) Interest; term.--The direct loan provided under
        subsection (b) shall bear interest at a rate and for a term that
        the Secretary determines appropriate, after consultation with
        the Secretary of the Treasury, taking into account the needs and
        capacities of the borrower and the prevailing rate of interest
        for similar loans made by public and private lenders.
            (4) Additional terms and conditions.--The Secretary may
        require any other terms and conditions that the Secretary
        determines to be appropriate.

    (d) Use of Payments.--The Secretary shall retain any payments of
principal and interest on the direct loan provided under subsection (b)
to support energy research and development activities, to remain
available until expended, subject to any other conditions in an
applicable appropriations Act.
    (e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to provide the cost of a direct
loan under subsection (b).

SEC. 413. <<NOTE: 42 USC 15973.>> WESTERN INTEGRATED COAL GASIFICATION
            DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of appropriations, the
Secretary shall carry out a project to demonstrate production of energy
from coal mined in the western United States using integrated
gasification combined cycle technology (referred to in this section as
the ``demonstration project'').
    (b) Components.--The demonstration project--
            (1) may include repowering of existing facilities;
            (2) shall be designed to demonstrate the ability to use coal
        with an energy content of not more than 9,000 Btu/lb.; and
            (3) shall be capable of removing and sequestering carbon
        dioxide emissions.

    (c) All Types of Western Coals.--Notwithstanding the foregoing, and
to the extent economically feasible, the demonstration project shall
also be designed to demonstrate the ability to use a variety of types of
coal (including subbituminous and bituminous coal with an energy content
of up to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located in a
western State at an altitude of greater than 4,000 feet above sea level.
    (e) Cost Sharing.--The Federal share of the cost of the
demonstration project shall be determined in accordance with section
988.
    (f) Loan Guarantees.--Notwithstanding title XIV, the demonstration
project shall not be eligible for Federal loan guarantees.

SEC. 414. <<NOTE: 42 USC 15974.>> COAL GASIFICATION.

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

[[Page 119 STAT. 756]]

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

SEC. 415. <<NOTE: 42 USC 15975.>> PETROLEUM COKE GASIFICATION.

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

SEC. 416. <<NOTE: 42 USC 15976.>> ELECTRON SCRUBBING DEMONSTRATION.

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

SEC. 417. <<NOTE: 42 USC 15977.>> DEPARTMENT OF ENERGY TRANSPORTATION
            FUELS FROM ILLINOIS BASIN COAL.

    (a) In General.--The Secretary shall carry out a program to evaluate
the commercial and technical viability of advanced technologies for the
production of Fischer-Tropsch transportation fuels, and other
transportation fuels, manufactured from Illinois basin coal, including
the capital modification of existing facilities and the construction of
testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the commercial and
technical viability of different processes for producing Fischer-Tropsch
transportation fuels, and other transportation fuels, from Illinois
basin coal, the Secretary shall support the use and capital modification
of existing facilities and the construction of new facilities at--
            (1) Southern Illinois University Coal Research Center;
            (2) University of Kentucky Center for Applied Energy
        Research; and
            (3) Energy Center at Purdue University.

    (c) Gasification Products Test Center.--In conjunction with the
activities described in subsections (a) and (b), the Secretary shall
construct a test center to evaluate and confirm liquid and gas products
from syngas catalysis in order that the system has an output of at least
500 gallons of Fischer-Tropsch transportation fuel per day in a 24-hour
operation.
    (d) <<NOTE: Deadlines.>> Milestones.--
            (1) Selection of processes.--Not later than 180 days after
        the date of enactment of this Act, the Secretary shall select
        processes for evaluating the commercial and technical viability
        of different processes of producing Fischer-Tropsch
        transportation fuels, and other transportation fuels, from
        Illinois basin coal.
            (2) Agreements.--Not later than 1 year after the date of
        enactment of this Act, the Secretary shall offer to enter into
        agreements--
                    (A) to carry out the activities described in this
                section, at the facilities described in subsection (b);
                and
                    (B) for the capital modifications or construction of
                the facilities at the locations described in subsection
                (b).
            (3) Evaluations.--Not later than 3 years after the date of
        enactment of the Act, the Secretary shall begin, at the
        facilities described in subsection (b), evaluation of the
        technical and commercial viability of different processes of
        producing Fischer-Tropsch transportation fuels, and other
        transportation fuels, from Illinois basin coal.

[[Page 119 STAT. 757]]

            (4) Construction of facilities.--
                    (A) In general.--The Secretary shall construct the
                facilities described in subsection (b) at the lowest
                cost practicable.
                    (B) Grants or agreements.--The Secretary may make
                grants or enter into agreements or contracts with the
                institutions of higher education described in subsection
                (b).

    (e) Cost Sharing.--The cost of making grants under this section
shall be shared in accordance with section 988.
    (f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $85,000,000 for the period of
fiscal years 2006 through 2010.

                  Subtitle C--Coal and Related Programs

SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

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

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. <<NOTE: 42 USC 13571.>> PURPOSES.

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

``SEC. 3102. <<NOTE: 42 USC 13572.>> AUTHORIZATION OF PROGRAM.

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

[[Page 119 STAT. 758]]

                Clean Air Act and State implementation efforts pursuant
                to such Act.

    ``(b) Financial Criteria.--As determined by the Secretary for a
particular project, financial assistance under this title shall be in
the form of--
            ``(1) cost-sharing of an appropriate percentage of the total
        project cost, not to exceed 50 percent as calculated under
        section 988 of the Energy Policy Act of 2005; or
            ``(2) financial assistance, including grants, cooperative
        agreements, or loans as authorized under this Act or other
        statutory authority of the Secretary.

``SEC. 3103. <<NOTE: 42 USC 13573.>> GENERATION PROJECTS.

    ``(a) Eligible Projects.--Projects supported under section
3102(a)(1) may include--
            ``(1) equipment or processes previously supported by a
        Department of Energy program;
            ``(2) advanced combustion equipment and processes that the
        Secretary determines will be cost-effective and could
        substantially contribute to meeting environmental or energy
        needs, including gasification, gasification fuel cells,
        gasification coproduction, oxidation combustion techniques,
        ultra-supercritical boilers, and chemical looping; and
            ``(3) hybrid gasification/combustion systems, including
        systems integrating fuel cells with gasification or combustion
        units.

    ``(b) Criteria.--The Secretary shall establish criteria for the
selection of generation projects under section 3102(a)(1). The Secretary
may modify the criteria as appropriate to reflect improvements in
equipment, except that the criteria shall not be modified to be less
stringent. The selection criteria shall include--
            ``(1) prioritization of projects whose installation is
        likely to result in significant air quality improvements in
        nonattainment air quality areas;
            ``(2) prioritization of projects whose installation is
        likely to result in lower emission rates of pollution;
            ``(3) prioritization of projects that result in the
        repowering or replacement of older, less efficient units;
            ``(4) documented broad interest in the procurement of the
        equipment and utilization of the processes used in the projects
        by owners or operators of facilities for electricity generation;
            ``(5) equipment and processes beginning in 2006 through 2011
        that are projected to achieve a thermal efficiency of--
                    ``(A) 40 percent for coal of more than 9,000 Btu per
                pound based on higher heating values;
                    ``(B) 38 percent for coal of 7,000 to 9,000 Btu per
                pound passed on higher heating values; and
                    ``(C) 36 percent for coal of less than 7,000 Btu per
                pound based on higher heating values;
        except that energy used for coproduction or cogeneration shall
        not be counted in calculating the thermal efficiency under this
        paragraph; and
            ``(6) equipment and processes beginning in 2012 and 2013
        that are projected to achieve a thermal efficiency of--
                    ``(A) 45 percent for coal of more than 9,000 Btu per
                pound based on higher heating values;
                    ``(B) 44 percent for coal of 7,000 to 9,000 Btu per
                pound passed on higher heating values; and

[[Page 119 STAT. 759]]

                    ``(C) 40 percent for coal of less than 7,000 Btu per
                pound based on higher heating values;
        except that energy used for coproduction or cogeneration shall
        not be counted in calculating the thermal efficiency under this
        paragraph.

    ``(c) Program Balance and Priority.--In carrying out the program
under section 3102(a)(1), the Secretary shall ensure, to the extent
practicable, that--
            ``(1) between 25 percent and 75 percent of the projects
        supported are for the sole purpose of electrical generation; and
            ``(2) priority is given to projects that use electrical
        generation equipment and processes that have been developed and
        demonstrated and applied in actual production of electricity,
        but are not yet cost-competitive, and that achieve greater
        efficiency and environmental performance.

    ``(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out section 3102(a)(1)--
            ``(1) $250,000,000 for fiscal year 2007;
            ``(2) $350,000,000 for fiscal year 2008;
            ``(3) $400,000,000 for each of fiscal years 2009 through
        2012; and
            ``(4) $300,000,000 for fiscal year 2013.

    ``(e) Applicability.--No technology, or level of emission reduction,
shall be treated as adequately demonstrated for purpose of section 111
of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of
section 169 of that Act (42 U.S.C. 7479), or achievable in practice for
purposes of section 171 of that Act (42 U.S.C. 7501) solely by reason of
the use of such technology, or the achievement of such emission
reduction, by one or more facilities receiving assistance under section
3102(a)(1).

``SEC. 3104. <<NOTE: 42 USC 13574.>> AIR QUALITY ENHANCEMENT PROGRAM.

    ``(a) Eligible Projects.--Projects supported under section
3102(a)(2) shall--
            ``(1) utilize technologies that meet relevant Federal and
        State clean air requirements applicable to the unit or facility,
        including being adequately demonstrated for purposes of section
        111 of the Clean Air Act (42 U.S.C. 7411), achievable for
        purposes of section 169 of that Act (42 U.S.C. 7479), or
        achievable in practice for purposes of section 171 of that Act
        (42 U.S.C. 7501); or
            ``(2) utilize equipment or processes that exceed relevant
        Federal or State clean air requirements applicable to the unit
        or facilities included in the projects by achieving greater
        efficiency or environmental performance.

    ``(b) Priority in Project Selection.--In making an award under
section 3102(a)(2), the Secretary shall give priority to--
            ``(1) projects whose installation is likely to result in
        significant air quality improvements in nonattainment air
        quality areas or substantially reduce the emission level of
        criteria pollutants and mercury air emissions;
            ``(2) projects for pollution control that result in the
        mitigation or collection of more than 1 pollutant; and
            ``(3) projects designed to allow the use of the waste
        byproducts or other byproducts of the equipment.

[[Page 119 STAT. 760]]

    ``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out section 3102(a)(2)--
            ``(1) $300,000,000 for fiscal year 2007;
            ``(2) $100,000,000 for fiscal year 2008;
            ``(3) $40,000,000 for fiscal year 2009;
            ``(4) $30,000,000 for fiscal year 2010; and
            ``(5) $30,000,000 for fiscal year 2011.

    ``(d) Applicability.--No technology, or level of emission reduction
under subsection (a)(2) shall be treated as adequately demonstrated for
purpose of Section 111 of the Clean Air Act (42 U.S.C. 7411), achievable
for purposes of section 169 of that Act (42 U.S.C. 7479), or achievable
in practice for purposes of section 171 of that Act (42 U.S.C. 7501)
solely by reason of the use of such technology, or the achievement of
such emission reduction, by one or more facilities receiving assistance
under section 3102(a)(2).''.
    (b) Table of Contents Amendment.--The table of contents of the
Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding
at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

        ``Sec. 3101. Purposes.
        ``Sec. 3102. Authorization of program.
        ``Sec. 3103. Generation projects.
        ``Sec. 3104. Air quality enhancement program.''.

Subtitle D--Federal <<NOTE: Coal Leasing Amendments Act of 2005.>> Coal
Leases

SEC. 431. <<NOTE: 42 USC 15801.>> SHORT TITLE.

    This subtitle may be cited as the ``Coal Leasing Amendments Act of
2005''.

SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended--
            (1) in the first sentence, by striking ``Any person'' and
        inserting the following: ``(a)(1) Except as provided in
        paragraph (3), on a finding by the Secretary under paragraph
        (2), any person'';
            (2) in the second sentence, by striking ``The Secretary''
        and inserting the following:

    ``(b) The Secretary'';
            (3) in the third sentence, by striking ``The minimum'' and
        inserting the following:

    ``(c) The minimum'';
            (4) in subsection (a) (as designated by paragraph (1))--
                    (A) by striking ``upon'' and all that follows and
                inserting the following: ``secure modifications of the
                original coal lease by including additional coal lands
                or coal deposits contiguous or cornering to those
                embraced in the lease.''; and
                    (B) by adding at the end the following:

    ``(2) A finding referred to in paragraph (1) is a finding by the
Secretary that the modifications--
            ``(A) would be in the interest of the United States;
            ``(B) would not displace a competitive interest in the
        lands; and

[[Page 119 STAT. 761]]

            ``(C) would not include lands or deposits that can be
        developed as part of another potential or existing operation.

    ``(3) In no case shall the total area added by modifications to an
existing coal lease under paragraph (1)--
            ``(A) exceed 960 acres; or
            ``(B) add acreage larger than that in the original lease.''.

SEC. 433. APPROVAL OF LOGICAL MINING UNITS.

    Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is
amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:

    ``(B) The Secretary may establish a period of more than 40 years if
the Secretary determines that the longer period--
            ``(i) will ensure the maximum economic recovery of a coal
        deposit; or
            ``(ii) the longer period is in the interest of the orderly,
        efficient, or economic development of a coal resource.''.

SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) is
amended--
            (1) in the first sentence, by striking ``Each lease'' and
        inserting the following: ``(1) Each lease'';
            (2) in the second sentence, by striking ``The Secretary''
        and inserting the following:

    ``(2) The Secretary'';
            (3) in the third sentence, by striking ``Such advance
        royalties'' and inserting the following:

    ``(3) Advance royalties described in paragraph (2)'';
            (4) in the seventh sentence, by striking ``The Secretary''
        and inserting the following:

    ``(6) The Secretary'';
            (5) in the last sentence, by striking ``Nothing'' and
        inserting the following:

    ``(7) Nothing'';
            (6) by striking the fourth, fifth, and sixth sentences; and
            (7) by inserting after paragraph (3) (as designated by
        paragraph (3)) the following:

    ``(4) Advance royalties described in paragraph (2) shall be
computed--
            ``(A) based on--
                    ``(i) the average price in the spot market for sales
                of comparable coal from the same region during the last
                month of each applicable continued operation year; or
                    ``(ii) in the absence of a spot market for
                comparable coal from the same region, by using a
                comparable method established by the Secretary of the
                Interior to capture the commercial value of coal; and
            ``(B) based on commercial quantities, as defined by
        regulation by the Secretary of the Interior.

    ``(5) The aggregate number of years during the period of any lease
for which advance royalties may be accepted in lieu of the condition of
continued operation shall not exceed 20 years.
    ``(6) The amount of any production royalty paid for any year shall
be reduced (but not below 0) by the amount of any advance royalties paid
under a lease described in paragraph (5) to the

[[Page 119 STAT. 762]]

extent that the advance royalties have not been used to reduce
production royalties for a prior year.''.

SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE OPERATION
            AND RECLAMATION PLAN.

    Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is
amended by striking ``and not later than three years after a lease is
issued,''.

SEC. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO
            BONUS BIDS.

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

SEC. 437. <<NOTE: 42 USC 15991.>> INVENTORY REQUIREMENT.

    (a) Review of Assessments.--
            (1) In general.--The Secretary of the Interior, in
        consultation with the Secretary of Agriculture and the
        Secretary, shall review coal assessments and other available
        data to identify--
                    (A) Federal lands with coal resources that are
                available for development;
                    (B) the extent and nature of any restrictions on the
                development of coal resources on Federal lands
                identified under paragraph (1); and
                    (C) with respect to areas of such lands for which
                sufficient data exists, resources of compliant coal and
                supercompliant coal.
            (2) Definitions.--For purposes of this subsection--
                    (A) the term ``compliant coal'' means coal that
                contains not less than 1.0 and not more than 1.2 pounds
                of sulfur dioxide per million Btu; and
                    (B) the term ``supercompliant coal'' means coal that
                contains less than 1.0 pounds of sulfur dioxide per
                million Btu.

    (b) Completion and Updating of the Inventory.--The Sec- retary--

[[Page 119 STAT. 763]]

            (1) <<NOTE: Deadline.>> shall complete the inventory under
        subsection (a) by not later than 2 years after the date of
        enactment of this Act; and
            (2) shall update the inventory as the availability of data
        and developments in technology warrant.

    (c) Report.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee on Energy
and Natural Resources of the Senate and make publicly available--
            (1) a report containing the inventory under this section, by
        not later than 2 years after the effective date of this section;
        and
            (2) each update of such inventory.

SEC. 438. <<NOTE: 30 USC 201 note.>> APPLICATION OF AMENDMENTS.

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

   TITLE V--INDIAN <<NOTE: Indian Tribal Energy Development and Self-
Determination Act of 2005.>> ENERGY

SEC. 501. <<NOTE: 42 USC 15801 note.>> SHORT TITLE.

    This title may be cited as the ``Indian Tribal Energy Development
and Self-Determination Act of 2005''.

SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    (a) In General.--Title II of the Department of Energy Organization
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the
following:

              ``office of indian energy policy and programs

    ``Sec. 217. (a) Establishment.--There <<NOTE: 42 USC 7144e.>> is
established within the Department an Office of Indian Energy Policy and
Programs (referred to in this section as the `Office'). The Office shall
be headed by a Director, who shall be appointed by the Secretary and
compensated at a rate equal to that of level IV of the Executive
Schedule under section 5315 of title 5, United States Code.

    ``(b) Duties of Director.--The Director, in accordance with Federal
policies promoting Indian self-determination and the purposes of this
Act, shall provide, direct, foster, coordinate, and implement energy
planning, education, management, conservation, and delivery programs of
the Department that--
            ``(1) promote Indian tribal energy development, efficiency,
        and use;
            ``(2) reduce or stabilize energy costs;
            ``(3) enhance and strengthen Indian tribal energy and
        economic infrastructure relating to natural resource development
        and electrification; and
            ``(4) bring electrical power and service to Indian land and
        the homes of tribal members located on Indian lands or acquired,
        constructed, or improved (in whole or in part) with Federal
        funds.''.

    (b) Conforming Amendments.--
            (1) The table of contents of the Department of Energy
        Organization Act (42 U.S.C. prec. 7101) is amended--

[[Page 119 STAT. 764]]

                    (A) in the item relating to section 209, by striking
                ``Section'' and inserting ``Sec.''; and
                    (B) by striking the items relating to sections 213
                through 216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security
           Administration.
``Sec. 214. Establishment of security, counterintelligence, and
           intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.

            (2) Section 5315 of title 5, United States Code, is amended
        by inserting after the item related to the Inspector General,
        Department of Energy the following new item:
            ``Director, Office of Indian Energy Policy and Programs,
        Department of Energy.''.

SEC. 503. INDIAN ENERGY.

    (a) In General.--Title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) is amended to read as follows:

                       ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. <<NOTE: 25 USC 3501.>> DEFINITIONS.

    ``In this title:
            ``(1) The term `Director' means the Director of the Office
        of Indian Energy Policy and Programs, Department of Energy.
            ``(2) The term `Indian land' means--
                    ``(A) any land located within the boundaries of an
                Indian reservation, pueblo, or rancheria;
                    ``(B) any land not located within the boundaries of
                an Indian reservation, pueblo, or rancheria, the title
                to which is held--
                          ``(i) in trust by the United States for the
                      benefit of an Indian tribe or an individual
                      Indian;
                          ``(ii) by an Indian tribe or an individual
                      Indian, subject to restriction against alienation
                      under laws of the United States; or
                          ``(iii) by a dependent Indian community; and
                    ``(C) land that is owned by an Indian tribe and was
                conveyed by the United States to a Native Corporation
                pursuant to the Alaska Native Claims Settlement Act (43
                U.S.C. 1601 et seq.), or that was conveyed by the United
                States to a Native Corporation in exchange for such
                land.
            ``(3) The term `Indian reservation' includes--
                    ``(A) an Indian reservation in existence in any
                State or States as of the date of enactment of this
                paragraph;
                    ``(B) a public domain Indian allotment; and
                    ``(C) a dependent Indian community located within
                the borders of the United States, regardless of whether
                the community is located--
                          ``(i) on original or acquired territory of the
                      community; or
                          ``(ii) within or outside the boundaries of any
                      State or States.
            ``(4)(A) The term `Indian tribe' has the meaning given the
        term in section 4 of the Indian Self-Determination and Education
        Assistance Act (25 U.S.C. 450b).

[[Page 119 STAT. 765]]

            ``(B) For the purpose of paragraph (12) and sections
        2603(b)(1)(C) and 2604, the term `Indian tribe' does not include
        any Native Corporation.
            ``(5) The term `integration of energy resources' means any
        project or activity that promotes the location and operation of
        a facility (including any pipeline, gathering system,
        transportation system or facility, or electric transmission or
        distribution facility) on or near Indian land to process,
        refine, generate electricity from, or otherwise develop energy
        resources on, Indian land.
            ``(6) The term `Native Corporation' has the meaning given
        the term in section 3 of the Alaska Native Claims Settlement Act
        (43 U.S.C. 1602).
            ``(7) The term `organization' means a partnership, joint
        venture, limited liability company, or other unincorporated
        association or entity that is established to develop Indian
        energy resources.
            ``(8) The term `Program' means the Indian energy resource
        development program established under section 2602(a).
            ``(9) The term `Secretary' means the Secretary of the
        Interior.
            ``(10) The term `sequestration' means the long-term
        separation, isolation, or removal of greenhouse gases from the
        atmosphere, including through a biological or geologic method
        such as reforestation or an underground reservoir.
            ``(11) The term `tribal energy resource development
        organization' means an organization of two or more entities, at
        least one of which is an Indian tribe, that has the written
        consent of the governing bodies of all Indian tribes
        participating in the organization to apply for a grant, loan, or
        other assistance under section 2602.
            ``(12) The term `tribal land' means any land or interests in
        land owned by any Indian tribe, title to which is held in trust
        by the United States, or is subject to a restriction against
        alienation under laws of the United States.

``SEC. 2602. <<NOTE: 25 USC 3502.>> INDIAN TRIBAL ENERGY RESOURCE
            DEVELOPMENT.

    ``(a) Department of the Interior Program.--
            ``(1) To assist Indian tribes in the development of energy
        resources and further the goal of Indian self-determination, the
        Secretary shall establish and implement an Indian energy
        resource development program to assist consenting Indian tribes
        and tribal energy resource development organizations in
        achieving the purposes of this title.
            ``(2) <<NOTE: Grants.>> In carrying out the Program, the
        Secretary shall--
                    ``(A) provide development grants to Indian tribes
                and tribal energy resource development organizations for
                use in developing or obtaining the managerial and
                technical capacity needed to develop energy resources on
                Indian land, and to properly account for resulting
                energy production and revenues;
                    ``(B) provide grants to Indian tribes and tribal
                energy resource development organizations for use in
                carrying out projects to promote the integration of
                energy resources, and to process, use, or develop those
                energy resources, on Indian land;

[[Page 119 STAT. 766]]

                    ``(C) <<NOTE: Loans.>> provide low-interest loans to
                Indian tribes and tribal energy resource development
                organizations for use in the promotion of energy
                resource development on Indian land and integration of
                energy resources; and
                    ``(D) provide grants and technical assistance to an
                appropriate tribal environmental organization, as
                determined by the Secretary, that represents multiple
                Indian tribes to establish a national resource center to
                develop tribal capacity to establish and carry out
                tribal environmental programs in support of energy-
                related programs and activities under this title,
                including--
                          ``(i) training programs for tribal
                      environmental officials, program managers, and
                      other governmental representatives;
                          ``(ii) the development of model environmental
                      policies and tribal laws, including tribal
                      environmental review codes, and the creation and
                      maintenance of a clearinghouse of best
                      environmental management practices; and
                          ``(iii) recommended standards for reviewing
                      the implementation of tribal environmental laws
                      and policies within tribal judicial or other
                      tribal appeals systems.
            ``(3) <<NOTE: Appropriation authorization.>> There are
        authorized to be appropriated to carry out this subsection such
        sums as are necessary for each of fiscal years 2006 through
        2016.

    ``(b) Department of Energy Indian Energy Education Planning and
Management Assistance Program.--
            ``(1) The Director shall establish programs to assist
        consenting Indian tribes in meeting energy education, research
        and development, planning, and management needs.
            ``(2) In carrying out this subsection, the Director may
        provide grants, on a competitive basis, to an Indian tribe or
        tribal energy resource development organization for use in
        carrying out--
                    ``(A) energy, energy efficiency, and energy
                conservation programs;
                    ``(B) studies and other activities supporting tribal
                acquisitions of energy supplies, services, and
                facilities, including the creation of tribal utilities
                to assist in securing electricity to promote
                electrification of homes and businesses on Indian land;
                    ``(C) planning, construction, development,
                operation, maintenance, and improvement of tribal
                electrical generation, transmission, and distribution
                facilities located on Indian land; and
                    ``(D) development, construction, and interconnection
                of electric power transmission facilities located on
                Indian land with other electric transmission facilities.
            ``(3)(A) The Director shall develop a program to support and
        implement research projects that provide Indian tribes with
        opportunities to participate in carbon sequestration practices
        on Indian land, including--
                    ``(i) geologic sequestration;
                    ``(ii) forest sequestration;
                    ``(iii) agricultural sequestration; and

[[Page 119 STAT. 767]]

                    ``(iv) any other sequestration opportunities the
                Director considers to be appropriate.
            ``(B) The activities carried out under subparagraph (A)
        shall be--
                    ``(i) coordinated with other carbon sequestration
                research and development programs conducted by the
                Secretary of Energy;
                    ``(ii) conducted to determine methods consistent
                with existing standardized measurement protocols to
                account and report the quantity of carbon dioxide or
                other greenhouse gases sequestered in projects that may
                be implemented on Indian land; and
                    ``(iii) reviewed periodically to collect and
                distribute to Indian tribes information on carbon
                sequestration practices that will increase the
                sequestration of carbon without threatening the social
                and economic well-being of Indian tribes.
            ``(4)(A) The Director, in consultation with Indian tribes,
        may develop a formula for providing grants under this
        subsection.
            ``(B) In providing a grant under this subsection, the
        Director shall give priority to any application received from an
        Indian tribe with inadequate electric service (as determined by
        the Director).
            ``(C) In providing a grant under this subsection for an
        activity to provide, or expand the provision of, electricity on
        Indian land, the Director shall encourage cooperative
        arrangements between Indian tribes and utilities that provide
        service to Indian tribes, as the Director determines to be
        appropriate.
            ``(5) The Secretary of Energy may issue such regulations as
        the Secretary determines to be necessary to carry out this
        subsection.
            ``(6) <<NOTE: Appropriation authorization.>> There is
        authorized to be appropriated to carry out this subsection
        $20,000,000 for each of fiscal years 2006 through 2016.

    ``(c) Department of Energy Loan Guarantee Program.--
            ``(1) Subject to paragraphs (2) and (4), the Secretary of
        Energy may provide loan guarantees (as defined in section 502 of
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for an
        amount equal to not more than 90 percent of the unpaid principal
        and interest due on any loan made to an Indian tribe for energy
        development.
            ``(2) In providing a loan guarantee under this subsection
        for an activity to provide, or expand the provision of,
        electricity on Indian land, the Secretary of Energy shall
        encourage cooperative arrangements between Indian tribes and
        utilities that provide service to Indian tribes, as the
        Secretary determines to be appropriate.
            ``(3) A loan guarantee under this subsection shall be made
        by--
                    ``(A) a financial institution subject to examination
                by the Secretary of Energy; or
                    ``(B) an Indian tribe, from funds of the Indian
                tribe.
            ``(4) The aggregate outstanding amount guaranteed by the
        Secretary of Energy at any time under this subsection shall not
        exceed $2,000,000,000.

[[Page 119 STAT. 768]]

            ``(5) <<NOTE: Appropriation authorization.>> The Secretary
        of Energy may issue such regulations as the Secretary of Energy
        determines are necessary to carry out this subsection.
            ``(6) There are authorized to be appropriated such sums as
        are necessary to carry out this subsection, to remain available
        until expended.
            ``(7) <<NOTE: Deadline. Reports.>> Not later than 1 year
        after the date of enactment of this section, the Secretary of
        Energy shall submit to Congress a report on the financing
        requirements of Indian tribes for energy development on Indian
        land.

    ``(d) Preference.--
            ``(1) In purchasing electricity or any other energy product
        or byproduct, a Federal agency or department may give preference
        to an energy and resource production enterprise, partnership,
        consortium, corporation, or other type of business organization
        the majority of the interest in which is owned and controlled by
        1 or more Indian tribes.
            ``(2) In carrying out this subsection, a Federal agency or
        department shall not--
                    ``(A) pay more than the prevailing market price for
                an energy product or byproduct; or
                    ``(B) obtain less than prevailing market terms and
                conditions.

``SEC. 2603. <<NOTE: 25 USC 3503.>> INDIAN TRIBAL ENERGY RESOURCE
            REGULATION.

    ``(a) Grants.--The Secretary may provide to Indian tribes, on an
annual basis, grants for use in accordance with subsection (b).
    ``(b) Use of Funds.--Funds from a grant provided under this section
may be used--
            ``(1)(A) by an Indian tribe for the development of a tribal
        energy resource inventory or tribal energy resource on Indian
        land;
            ``(B) by an Indian tribe for the development of a
        feasibility study or other report necessary to the development
        of energy resources on Indian land;
            ``(C) by an Indian tribe (other than an Indian Tribe in the
        State of Alaska, except the Metlakatla Indian Community) for--
                    ``(i) the development and enforcement of tribal laws
                (including regulations) relating to tribal energy
                resource development; and
                    ``(ii) the development of technical infrastructure
                to protect the environment under applicable law; or
            ``(D) by a Native Corporation for the development and
        implementation of corporate policies and the development of
        technical infrastructure to protect the environment under
        applicable law; and
            ``(2) by an Indian tribe for the training of employees
        that--
                    ``(A) are engaged in the development of energy
                resources on Indian land; or
                    ``(B) are responsible for protecting the
                environment.

    ``(c) Other Assistance.--
            ``(1) In carrying out the obligations of the United States
        under this title, the Secretary shall ensure, to the maximum
        extent practicable and to the extent of available resources,
        that on the request of an Indian tribe, the Indian tribe shall

[[Page 119 STAT. 769]]

        have available scientific and technical information and
        expertise, for use in the regulation, development, and
        management of energy resources of the Indian tribe on Indian
        land.
            ``(2) The Secretary may carry out paragraph (1)--
                    ``(A) directly, through the use of Federal
                officials; or
                    ``(B) indirectly, by providing financial assistance
                to an Indian tribe to secure independent assistance.

``SEC. 2604. <<NOTE: 25 USC 3504.>> LEASES, BUSINESS AGREEMENTS, AND
            RIGHTS-OF-WAY INVOLVING ENERGY DEVELOPMENT OR TRANSMISSION.

    ``(a) Leases and Business Agreements.--In accordance with this
section--
            ``(1) an Indian tribe may, at the discretion of the Indian
        tribe, enter into a lease or business agreement for the purpose
        of energy resource development on tribal land, including a lease
        or business agreement for--
                    ``(A) exploration for, extraction of, processing of,
                or other development of the energy mineral resources of
                the Indian tribe located on tribal land; or
                    ``(B) construction or operation of--
                          ``(i) an electric generation, transmission, or
                      distribution facility located on tribal land; or
                          ``(ii) a facility to process or refine energy
                      resources developed on tribal land; and
            ``(2) a lease or business agreement described in paragraph
        (1) shall not require review by or the approval of the Secretary
        under section 2103 of the Revised Statutes (25 U.S.C. 81), or
        any other provision of law, if--
                    ``(A) the lease or business agreement is executed
                pursuant to a tribal energy resource agreement approved
                by the Secretary under subsection (e);
                    ``(B) the term of the lease or business agreement
                does not exceed--
                          ``(i) 30 years; or
                          ``(ii) in the case of a lease for the
                      production of oil resources, gas resources, or
                      both, 10 years and as long thereafter as oil or
                      gas is produced in paying quantities; and
                    ``(C) the Indian tribe has entered into a tribal
                energy resource agreement with the Secretary, as
                described in subsection (e), relating to the development
                of energy resources on tribal land (including the
                periodic review and evaluation of the activities of the
                Indian tribe under the agreement, to be conducted
                pursuant to subsection (e)(2)(D)(i)).

    ``(b) Rights-of-Way for Pipelines or Electric Transmission or
Distribution Lines.--An Indian tribe may grant a right-of-way over
tribal land for a pipeline or an electric transmission or distribution
line without review or approval by the Secretary if--
            ``(1) the right-of-way is executed in accordance with a
        tribal energy resource agreement approved by the Secretary under
        subsection (e);
            ``(2) the term of the right-of-way does not exceed 30 years;
            ``(3) the pipeline or electric transmission or distribution
        line serves--

[[Page 119 STAT. 770]]

                    ``(A) an electric generation, transmission, or
                distribution facility located on tribal land; or
                    ``(B) a facility located on tribal land that
                processes or refines energy resources developed on
                tribal land; and
            ``(4) the Indian tribe has entered into a tribal energy
        resource agreement with the Secretary, as described in
        subsection (e), relating to the development of energy resources
        on tribal land (including the periodic review and evaluation of
        the activities of the Indian tribe under an agreement described
        in subparagraphs (D) and (E) of subsection (e)(2)).

    ``(c) Renewals.--A lease or business agreement entered into, or a
right-of-way granted, by an Indian tribe under this section may be
renewed at the discretion of the Indian tribe in accordance with this
section.
    ``(d) Validity.--No lease, business agreement, or right-of-way
relating to the development of tribal energy resources under this
section shall be valid unless the lease, business agreement, or right-
of-way is authorized by a tribal energy resource agreement approved by
the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On the date on which regulations are promulgated under
        paragraph (8), an Indian tribe may submit to the Secretary for
        approval a tribal energy resource agreement governing leases,
        business agreements, and rights-of-way under this section.
            ``(2)(A) <<NOTE: Deadlines.>> Not later than 270 days after
        the date on which the Secretary receives a tribal energy
        resource agreement from an Indian tribe under paragraph (1), or
        not later than 60 days after the Secretary receives a revised
        tribal energy resource agreement from an Indian tribe under
        paragraph (4)(C) (or a later date, as agreed to by the Secretary
        and the Indian tribe), the Secretary shall approve or disapprove
        the tribal energy resource agreement.
            ``(B) The Secretary shall approve a tribal energy resource
        agreement submitted under paragraph (1) if--
                    ``(i) the Secretary determines that the Indian tribe
                has demonstrated that the Indian tribe has sufficient
                capacity to regulate the development of energy resources
                of the Indian tribe;
                    ``(ii) the tribal energy resource agreement includes
                provisions required under subparagraph (D); and
                    ``(iii) the tribal energy resource agreement
                includes provisions that, with respect to a lease,
                business agreement, or right-of-way under this section--
                          ``(I) ensure the acquisition of necessary
                      information from the applicant for the lease,
                      business agreement, or right-of-way;
                          ``(II) address the term of the lease or
                      business agreement or the term of conveyance of
                      the right-of-way;
                          ``(III) address amendments and renewals;
                          ``(IV) address the economic return to the
                      Indian tribe under leases, business agreements,
                      and rights-of-way;
                          ``(V) address technical or other relevant
                      requirements;

[[Page 119 STAT. 771]]

                          ``(VI) establish requirements for
                      environmental review in accordance with
                      subparagraph (C);
                          ``(VII) ensure compliance with all applicable
                      environmental laws, including a requirement that
                      each lease, business agreement, and right-of-way
                      state that the lessee, operator, or right-of-way
                      grantee shall comply with all such laws;
                          ``(VIII) identify final approval authority;
                          ``(IX) provide for public notification of
                      final approvals;
                          ``(X) establish a process for consultation
                      with any affected States regarding off-reservation
                      impacts, if any, identified under subparagraph
                      (C)(i);
                          ``(XI) describe the remedies for breach of the
                      lease, business agreement, or right-of-way;
                          ``(XII) require each lease, business
                      agreement, and right-of-way to include a statement
                      that, if any of its provisions violates an express
                      term or requirement of the tribal energy resource
                      agreement pursuant to which the lease, business
                      agreement, or right-of-way was executed--
                                    ``(aa) the provision shall be null
                                and void; and
                                    ``(bb) if the Secretary determines
                                the provision to be material, the
                                Secretary may suspend or rescind the
                                lease, business agreement, or right-of-
                                way or take other appropriate action
                                that the Secretary determines to be in
                                the best interest of the Indian tribe;
                          ``(XIII) require each lease, business
                      agreement, and right-of-way to provide that it
                      will become effective on the date on which a copy
                      of the executed lease, business agreement, or
                      right-of-way is delivered to the Secretary in
                      accordance with regulations promulgated under
                      paragraph (8);
                          ``(XIV) include citations to tribal laws,
                      regulations, or procedures, if any, that set out
                      tribal remedies that must be exhausted before a
                      petition may be submitted to the Secretary under
                      paragraph (7)(B);
                          ``(XV) specify the financial assistance, if
                      any, to be provided by the Secretary to the Indian
                      tribe to assist in implementation of the tribal
                      energy resource agreement, including environmental
                      review of individual projects; and
                          ``(XVI) in accordance with the regulations
                      promulgated by the Secretary under paragraph (8),
                      require that the Indian tribe, as soon as
                      practicable after receipt of a notice by the
                      Indian tribe, give written notice to the Secretary
                      of--
                                    ``(aa) any breach or other violation
                                by another party of any provision in a
                                lease, business agreement, or right-of-
                                way entered into under the tribal energy
                                resource agreement; and
                                    ``(bb) any activity or occurrence
                                under a lease, business agreement, or
                                right-of-way that constitutes a
                                violation of Federal or tribal
                                environmental laws.

[[Page 119 STAT. 772]]

                    ``(C) Tribal energy resource agreements submitted
                under paragraph (1) shall establish, and include
                provisions to ensure compliance with, an environmental
                review process that, with respect to a lease, business
                agreement, or right-of-way under this section, provides
                for, at a minimum--
                          ``(i) the identification and evaluation of all
                      significant environmental effects (as compared to
                      a no-action alternative), including effects on
                      cultural resources;
                          ``(ii) the identification of proposed
                      mitigation measures, if any, and incorporation of
                      appropriate mitigation measures into the lease,
                      business agreement, or right-of-way;
                          ``(iii) a process for ensuring that--
                                    ``(I) the public is informed of, and
                                has an opportunity to comment on, the
                                environmental impacts of the proposed
                                action; and
                                    ``(II) responses to relevant and
                                substantive comments are provided,
                                before tribal approval of the lease,
                                business agreement, or right-of-way;
                          ``(iv) sufficient administrative support and
                      technical capability to carry out the
                      environmental review process; and
                          ``(v) oversight by the Indian tribe of energy
                      development activities by any other party under
                      any lease, business agreement, or right-of-way
                      entered into pursuant to the tribal energy
                      resource agreement, to determine whether the
                      activities are in compliance with the tribal
                      energy resource agreement and applicable Federal
                      environmental laws.
                    ``(D) A tribal energy resource agreement between the
                Secretary and an Indian tribe under this subsection
                shall include--
                          ``(i) provisions requiring the Secretary to
                      conduct a periodic review and evaluation to
                      monitor the performance of the activities of the
                      Indian tribe associated with the development of
                      energy resources under the tribal energy resource
                      agreement; and
                          ``(ii) if a periodic review and evaluation, or
                      an investigation, by the Secretary of any breach
                      or violation described in a notice provided by the
                      Indian tribe to the Secretary in accordance with
                      subparagraph (B)(iii)(XVI), results in a finding
                      by the Secretary of imminent jeopardy to a
                      physical trust asset arising from a violation of
                      the tribal energy resource agreement or applicable
                      Federal laws, provisions authorizing the Secretary
                      to take actions determined by the Secretary to be
                      necessary to protect the asset, including
                      reassumption of responsibility for activities
                      associated with the development of energy
                      resources on tribal land until the violation and
                      any condition that caused the jeopardy are
                      corrected.
                    ``(E) Periodic review and evaluation under
                subparagraph (D) shall be conducted on an annual basis,
                except that, after the third annual review and
                evaluation, the Secretary and the Indian tribe may
                mutually agree to amend the tribal energy resource
                agreement to authorize

[[Page 119 STAT. 773]]

                the review and evaluation under subparagraph (D) to be
                conducted once every 2 years.
            ``(3) <<NOTE: Notice. Public information.>> The Secretary
        shall provide notice and opportunity for public comment on
        tribal energy resource agreements submitted for approval under
        paragraph (1). The Secretary's review of a tribal energy
        resource agreement shall be limited to activities specified by
        the provisions of the tribal energy resource agreement.
            ``(4) <<NOTE: Deadline.>> If the Secretary disapproves a
        tribal energy resource agreement submitted by an Indian tribe
        under paragraph (1), the Secretary shall, not later than 10 days
        after the date of disapproval--
                    ``(A) <<NOTE: Notification.>> notify the Indian
                tribe in writing of the basis for the disapproval;
                    ``(B) identify what changes or other actions are
                required to address the concerns of the Secretary; and
                    ``(C) provide the Indian tribe with an opportunity
                to revise and resubmit the tribal energy resource
                agreement.
            ``(5) If an Indian tribe executes a lease or business
        agreement, or grants a right-of-way, in accordance with a tribal
        energy resource agreement approved under this subsection, the
        Indian tribe shall, in accordance with the process and
        requirements under regulations promulgated under paragraph (8),
        provide to the Secretary--
                    ``(A) <<NOTE: Records.>> a copy of the lease,
                business agreement, or right-of-way document (including
                all amendments to and renewals of the document); and
                    ``(B) in the case of a tribal energy resource
                agreement or a lease, business agreement, or right-of-
                way that permits payments to be made directly to the
                Indian tribe, information and documentation of those
                payments sufficient to enable the Secretary to discharge
                the trust responsibility of the United States to enforce
                the terms of, and protect the rights of the Indian tribe
                under, the lease, business agreement, or right-of-way.
            ``(6)(A) In carrying out this section, the Secretary shall--
                    ``(i) act in accordance with the trust
                responsibility of the United States relating to mineral
                and other trust resources; and
                    ``(ii) act in good faith and in the best interests
                of the Indian tribes.
            ``(B) Subject to the provisions of subsections (a)(2), (b),
        and (c) waiving the requirement of Secretarial approval of
        leases, business agreements, and rights-of-way executed pursuant
        to tribal energy resource agreements approved under this
        section, and the provisions of subparagraph (D), nothing in this
        section shall absolve the United States from any responsibility
        to Indians or Indian tribes, including, but not limited to,
        those which derive from the trust relationship or from any
        treaties, statutes, and other laws of the United States,
        Executive orders, or agreements between the United States and
        any Indian tribe.
            ``(C) The Secretary shall continue to fulfill the trust
        obligation of the United States to ensure that the rights and
        interests of an Indian tribe are protected if--
                    ``(i) any other party to a lease, business
                agreement, or right-of-way violates any applicable
                Federal law or the

[[Page 119 STAT. 774]]

                terms of any lease, business agreement, or right-of-way
                under this section; or
                    ``(ii) any provision in a lease, business agreement,
                or right-of-way violates the tribal energy resource
                agreement pursuant to which the lease, business
                agreement, or right-of-way was executed.
            ``(D)(i) In this subparagraph, the term `negotiated term'
        means any term or provision that is negotiated by an Indian
        tribe and any other party to a lease, business agreement, or
        right-of-way entered into pursuant to an approved tribal energy
        resource agreement.
            ``(ii) Notwithstanding subparagraph (B), the United States
        shall not be liable to any party (including any Indian tribe)
        for any negotiated term of, or any loss resulting from the
        negotiated terms of, a lease, business agreement, or right-of-
        way executed pursuant to and in accordance with a tribal energy
        resource agreement approved by the Secretary under paragraph
        (2).
            ``(7)(A) In this paragraph, the term `interested party'
        means any person (including an entity) that has demonstrated
        that an interest of the person has sustained, or will sustain,
        an adverse environmental impact as a result of the failure of an
        Indian tribe to comply with a tribal energy resource agreement
        of the Indian tribe approved by the Secretary under paragraph
        (2).
            ``(B) After exhaustion of any tribal remedy, and in
        accordance with regulations promulgated by the Secretary under
        paragraph (8), an interested party may submit to the Secretary a
        petition to review the compliance by an Indian tribe with a
        tribal energy resource agreement of the Indian tribe approved by
        the Secretary under paragraph (2).
            ``(C)(i) <<NOTE: Deadline.>> Not later than 20 days after
        the date on which the Secretary receives a petition under
        subparagraph (B), the Secretary shall--
                    ``(I) <<NOTE: Records.>> provide to the Indian tribe
                a copy of the petition; and
                    ``(II) consult with the Indian tribe regarding any
                noncompliance alleged in the petition.
            ``(ii) <<NOTE: Deadline. Claims.>> Not later than 45 days
        after the date on which a consultation under clause (i)(II)
        takes place, the Indian tribe shall respond to any claim made in
        a petition under subparagraph (B).
            ``(iii) The Secretary shall act in accordance with
        subparagraphs (D) and (E) only if the Indian tribe--
                    ``(I) denies, or fails to respond to, each claim
                made in the petition within the period described in
                clause (ii); or
                    ``(II) fails, refuses, or is unable to cure or
                otherwise resolve each claim made in the petition within
                a reasonable period, as determined by the Secretary,
                after the expiration of the period described in clause
                (ii).
            ``(D)(i) <<NOTE: Deadline.>> Not later than 120 days after
        the date on which the Secretary receives a petition under
        subparagraph (B), the Secretary shall determine whether the
        Indian tribe is not in compliance with the tribal energy
        resource agreement.
            ``(ii) The Secretary may adopt procedures under paragraph
        (8) authorizing an extension of time, not to exceed 120 days,

[[Page 119 STAT. 775]]

        for making the determination under clause (i) in any case in
        which the Secretary determines that additional time is necessary
        to evaluate the allegations of the petition.
            ``(iii) Subject to subparagraph (E), if the Secretary
        determines that the Indian tribe is not in compliance with the
        tribal energy resource agreement, the Secretary shall take such
        action as the Secretary determines to be necessary to ensure
        compliance with the tribal energy resource agreement,
        including--
                    ``(I) temporarily suspending any activity under a
                lease, business agreement, or right-of-way under this
                section until the Indian tribe is in compliance with the
                approved tribal energy resource agreement; or
                    ``(II) rescinding approval of all or part of the
                tribal energy resource agreement, and if all of the
                agreement is rescinded, reassuming the responsibility
                for approval of any future leases, business agreements,
                or rights-of-way described in subsection (a) or (b).
            ``(E) Before taking an action described in subparagraph
        (D)(iii), the Secretary shall--
                    ``(i) make a written determination that describes
                the manner in which the tribal energy resource agreement
                has been violated;
                    ``(ii) <<NOTE: Notice.>> provide the Indian tribe
                with a written notice of the violations together with
                the written determination; and
                    ``(iii) before taking any action described in
                subparagraph (D)(iii) or seeking any other remedy,
                provide the Indian tribe with a hearing and a reasonable
                opportunity to attain compliance with the tribal energy
                resource agreement.
            ``(F) An Indian tribe described in subparagraph (E) shall
        retain all rights to appeal under any regulation promulgated by
        the Secretary.
            ``(8) <<NOTE: Deadline. Regulations.>> Not later than 1 year
        after the date of enactment of the Energy Policy Act of 2005,
        the Secretary shall promulgate regulations that implement this
        subsection, including--
                    ``(A) criteria to be used in determining the
                capacity of an Indian tribe under paragraph (2)(B)(i),
                including the experience of the Indian tribe in managing
                natural resources and financial and administrative
                resources available for use by the Indian tribe in
                implementing the approved tribal energy resource
                agreement of the Indian tribe;
                    ``(B) a process and requirements in accordance with
                which an Indian tribe may--
                          ``(i) voluntarily rescind a tribal energy
                      resource agreement approved by the Secretary under
                      this subsection; and
                          ``(ii) return to the Secretary the
                      responsibility to approve any future lease,
                      business agreement, or right-of-way under this
                      subsection;
                    ``(C) provisions establishing the scope of, and
                procedures for, the periodic review and evaluation
                described in subparagraphs (D) and (E) of paragraph (2),
                including

[[Page 119 STAT. 776]]

                provisions for review of transactions, reports, site
                inspections, and any other review activities the
                Secretary determines to be appropriate; and
                    ``(D) provisions describing final agency actions
                after exhaustion of administrative appeals from
                determinations of the Secretary under paragraph (7).

    ``(f) No Effect on Other Law.--Nothing in this section affects the
application of--
            ``(1) any Federal environmental law;
            ``(2) the Surface Mining Control and Reclamation Act of 1977
        (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, the Indian
        Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.).

    ``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary for each of
fiscal years 2006 through 2016 to carry out this section and to make
grants or provide other appropriate assistance to Indian tribes to
assist the Indian tribes in developing and implementing tribal energy
resource agreements in accordance with this section.

``SEC. 2605. <<NOTE: 25 USC 3505.>> FEDERAL POWER MARKETING
            ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
            ``(1) The term `Administrator' means the Administrator of
        the Bonneville Power Administration and the Administrator of the
        Western Area Power Administration.
            ``(2) The term `power marketing administration' means--
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Western Area Power Administration; and
                    ``(C) any other power administration the power
                allocation of which is used by or for the benefit of an
                Indian tribe located in the service area of the
                administration.

    ``(b) Encouragement of Indian Tribal Energy Development.--Each
Administrator shall encourage Indian tribal energy development by taking
such actions as the Administrators determine to be appropriate,
including administration of programs of the power marketing
administration, in accordance with this section.
    ``(c) Action by Administrators.--In carrying out this section, in
accordance with laws in existence on the date of enactment of the Energy
Policy Act of 2005--
            ``(1) each Administrator shall consider the unique
        relationship that exists between the United States and Indian
        tribes;
            ``(2) power allocations from the Western Area Power
        Administration to Indian tribes may be used to meet firming and
        reserve needs of Indian-owned energy projects on Indian land;
            ``(3) the Administrator of the Western Area Power
        Administration may purchase non-federally generated power from
        Indian tribes to meet the firming and reserve requirements of
        the Western Area Power Administration; and
            ``(4) each Administrator shall not--
                    ``(A) pay more than the prevailing market price for
                an energy product; or
                    ``(B) obtain less than prevailing market terms and
                conditions.

    ``(d) Assistance for Transmission System Use.--

[[Page 119 STAT. 777]]

            ``(1) An Administrator may provide technical assistance to
        Indian tribes seeking to use the high-voltage transmission
        system for delivery of electric power.
            ``(2) The costs of technical assistance provided under
        paragraph (1) shall be funded--
                    ``(A) by the Secretary of Energy using
                nonreimbursable funds appropriated for that purpose; or
                    ``(B) by any appropriate Indian tribe.

    ``(e) Power Allocation Study.--
Not <<NOTE: Deadline. Reports.>> later than 2 years after the date of
enactment of the Energy Policy Act of 2005, the Secretary of Energy
shall submit to Congress a report that--
            ``(1) describes the use by Indian tribes of Federal power
        allocations of the power marketing administration (or power sold
        by the Southwestern Power Administration) to or for the benefit
        of Indian tribes in a service area of the power marketing
        administration; and
            ``(2) identifies--
                    ``(A) the quantity of power allocated to, or used
                for the benefit of, Indian tribes by the Western Area
                Power Administration;
                    ``(B) the quantity of power sold to Indian tribes by
                any other power marketing administration; and
                    ``(C) barriers that impede tribal access to and use
                of Federal power, including an assessment of
                opportunities to remove those barriers and improve the
                ability of power marketing administrations to deliver
                Federal power.

    ``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $750,000, non-reimbursable, to
remain available until expended.

``SEC. 2606. <<NOTE: 25 USC 3506.>> WIND AND HYDROPOWER FEASIBILITY
            STUDY.

    ``(a) Study.--The Secretary of Energy, in coordination with the
Secretary of the Army and the Secretary, shall conduct a study of the
cost and feasibility of developing a demonstration project that uses
wind energy generated by Indian tribes and hydropower generated by the
Army Corps of Engineers on the Missouri River to supply firming power to
the Western Area Power Administration.
    ``(b) Scope of Study.--The study shall--
            ``(1) determine the economic and engineering feasibility of
        blending wind energy and hydropower generated from the Missouri
        River dams operated by the Army Corps of Engineers, including an
        assessment of the costs and benefits of blending wind energy and
        hydropower compared to current sources used for firming power to
        the Western Area Power Administration;
            ``(2) review historical and projected requirements for,
        patterns of availability and use of, and reasons for historical
        patterns concerning the availability of firming power;
            ``(3) assess the wind energy resource potential on tribal
        land and projected cost savings through a blend of wind and
        hydropower over a 30-year period;
            ``(4) determine seasonal capacity needs and associated
        transmission upgrades for integration of tribal wind generation
        and identify costs associated with these activities;
            ``(5) include an independent tribal engineer and a Western
        Area Power Administration customer representative as study team
        members; and

[[Page 119 STAT. 778]]

            ``(6) incorporate, to the extent appropriate, the results of
        the Dakotas Wind Transmission study prepared by the Western Area
        Power Administration.

    ``(c) Report.--Not later than 1 year after the date of enactment of
the Energy Policy Act of 2005, the Secretary of Energy, the Secretary,
and the Secretary of the Army shall submit to Congress a report that
describes the results of the study, including--
            ``(1) an analysis and comparison of the potential energy
        cost or benefits to the customers of the Western Area Power
        Administration through the use of combined wind and hydropower;
            ``(2) an economic and engineering evaluation of whether a
        combined wind and hydropower system can reduce reservoir
        fluctuation, enhance efficient and reliable energy production,
        and provide Missouri River management flexibility;
            ``(3) if found feasible, recommendations for a demonstration
        project to be carried out by the Western Area Power
        Administration, in partnership with an Indian tribal government
        or tribal energy resource development organization, and Western
        Area Power Administration customers to demonstrate the
        feasibility and potential of using wind energy produced on
        Indian land to supply firming energy to the Western Area Power
        Administration; and
            ``(4) an identification of--
                    ``(A) the economic and environmental costs of, or
                benefits to be realized through, a Federal-tribal-
                customer partnership; and
                    ``(B) the manner in which a Federal-tribal-customer
                partnership could contribute to the energy security of
                the United States.

    ``(d) Funding.--
            ``(1) Authorization of appropriations.--There is authorized
        to be appropriated to carry out this section $1,000,000, to
        remain available until expended.
            ``(2) Nonreimbursability.--Costs incurred by the Secretary
        in carrying out this section shall be nonreimbursable.''.

    (b) Conforming Amendments.--The table of contents for the Energy
Policy Act of 1992 is amended by striking the items relating to title
XXVI and inserting the following:

``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving
           energy development or transmission.
``Sec. 2605. Federal Power Marketing Administrations.
``Sec. 2606. Wind and hydropower feasibility study.''.

SEC. 504. <<NOTE: 25 USC 3501 note.>> CONSULTATION WITH INDIAN TRIBES.

    In carrying out this title and the amendments made by this title,
the Secretary and the Secretary of the Interior shall, as appropriate
and to the maximum extent practicable, involve and consult with Indian
tribes.

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.

    (a) Transmission Line Project.--The Dine Power Authority, an
enterprise of the Navajo Nation, shall be eligible to receive grants and
other assistance under section 217 of the Department of Energy
Organization Act, as added by section 502, and section

[[Page 119 STAT. 779]]

2602 of the Energy Policy Act of 1992, as amended by this Act, for
activities associated with the development of a transmission line from
the Four Corners Area to southern Nevada, including related power
generation opportunities.
    (b) Navajo Electrification.--Section 602 of Public Law 106-511 (114
Stat. 2376) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``5-year''
                and inserting ``10-year''; and
                    (B) in the third sentence, by striking ``2006'' and
                inserting ``2011''; and
            (2) in the first sentence of subsection (e) by striking
        ``2006'' and inserting ``2011''.

SEC. 506. <<NOTE: 42 USC 16001.>> ENERGY EFFICIENCY IN FEDERALLY
            ASSISTED HOUSING.

    (a) In General.--The Secretary of Housing and Urban Development
shall promote energy conservation in housing that is located on Indian
land and assisted with Federal resources through--
            (1) the use of energy-efficient technologies and innovations
        (including the procurement of energy-efficient refrigerators and
        other appliances);
            (2) the promotion of shared savings contracts; and
            (3) the use and implementation of such other similar
        technologies and innovations as the Secretary of Housing and
        Urban Development considers to be appropriate.

    (b) Amendment.--Section 202(2) of the Native American Housing and
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by
inserting ``improvement to achieve greater energy efficiency,'' after
``planning,''.

                        TITLE VI--NUCLEAR MATTERS

  Subtitle A--Price-Anderson <<NOTE: Price-Anderson Amendments Act of
2005.>> Act Amendments

SEC. 601. <<NOTE: 42 USC 2011 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act of
2005''.

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is
amended--
            (1) in the subsection heading, by striking ``Licenses'' and
        inserting ``Licensees''; and
            (2) by striking ``December 31, 2003'' each place it appears
        and inserting ``December 31, 2025''.

    (b) Indemnification of Department Contractors.--Section 170 d.(1)(A)
of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by
striking ``December 31, 2006'' and inserting ``December 31, 2025''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended
by striking ``August 1, 2002'' each place it appears and inserting
``December 31, 2025''.

[[Page 119 STAT. 780]]

SEC. 603. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is
amended--
            (1) in the second proviso of the third sentence of
        subsection b.(1)--
                    (A) by striking ``$63,000,000'' and inserting
                ``$95,800,000''; and
                    (B) by striking ``$10,000,000 in any 1 year'' and
                inserting ``$15,000,000 in any 1 year (subject to
                adjustment for inflation under subsection t.)''; and
            (2) in subsection t.(1)--
                    (A) by inserting ``total and annual'' after ``amount
                of the maximum'';
                    (B) by striking ``the date of the enactment of the
                Price-Anderson Amendments Act of 1988'' and inserting
                ``August 20, 2003''; and
                    (C) in subparagraph (A), by striking ``such date of
                enactment'' and inserting ``August 20, 2003''.

SEC. 604. DEPARTMENT LIABILITY LIMIT.

    (a) Indemnification of Department Contractors.--Section 170 d. of
the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking
paragraph (2) and inserting the following:
    ``(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
            ``(A) may require the contractor to provide and maintain
        financial protection of such a type and in such amounts as the