October 1, 2007, shall have an Energy Factor that meets or exceeds the
following values:

``Product Capacity (pints/day)Minimum Energy Factor (Liters/kWh)........
25.00 or less                                                      1.00
25.01 - 35.00                                                      1.20
35.01 - 54.00                                                      1.30
54.01 - 74.99                                                      1.50
75.00 or more                                                      2.25.

    ``(2)(A) <<NOTE: Deadline. Publication. Regulations.>> Not later
than October 1, 2009, the Secretary shall publish a final rule in
accordance with subsections (o) and (p), to determine whether the energy
conservation standards established under paragraph (1) should be
amended.

    ``(B) The final rule published under subparagraph (A) shall--
            ``(i) contain any amendment by the Secretary; and
            ``(ii) <<NOTE: Applicability.>> provide that the amendment
        applies to products manufactured on or after October 1, 2012.

    ``(C) If the Secretary does not publish an amendment that takes
effect by October 1, 2012, dehumidifiers manufactured on or after
October 1, 2012, shall have an Energy Factor that meets or exceeds the
following values:

``Product Capacity (pints/day)Minimum Energy Factor (Liters/kWh)........
25.00 or less                                                      1.20
25.01 - 35.00                                                      1.30
35.01 - 45.00                                                      1.40
45.01 - 54.00                                                      1.50
54.01 - 74.99                                                      1.60
75.00 or more                                                       2.5.

    ``(dd) Commercial Prerinse Spray Valves.--Commercial prerinse spray
valves manufactured on or after January 1, 2006, shall have a flow rate
of not more than 1.6 gallons per minute.
    ``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp ballasts
shall not be manufactured or imported after January 1, 2008.
    ``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All ceiling
fans manufactured on or after January 1, 2007, shall have the following
features:
            ``(i) Fan speed controls separate from any lighting
        controls.
            ``(ii) Adjustable speed controls (either more than 1 speed
        or variable speed).
            ``(iii) Adjustable speed controls (either more than 1 speed
        or variable speed).
            ``(iv) The capability of reversible fan action, except for--

[[Page 119 STAT. 633]]

                    ``(I) fans sold for industrial applications;
                    ``(II) outdoor applications; and
                    ``(III) cases in which safety standards would be
                violated by the use of the reversible mode.

    ``(B) The Secretary may define the exceptions described in clause
(iv) in greater detail, but shall not substantively expand the
exceptions.
    ``(2)(A) Ceiling fan light kits with medium screw base sockets
manufactured on or after January 1, 2007, shall be packaged with screw-
based lamps to fill all screw base sockets.
    ``(B) The screw-based lamps required under subparagraph (A) shall--
            ``(i) meet the Energy Star Program Requirements for Compact
        Fluorescent Lamps, version 3.0, issued by the Department of
        Energy; or
            ``(ii) use light sources other than compact fluorescent
        lamps that have lumens per watt performance at least equivalent
        to comparably configured compact fluorescent lamps meeting the
        Energy Star Program Requirements described in clause (i).

    ``(3) Ceiling fan light kits with pin-based sockets for fluorescent
lamps manufactured on or after January 1, 2007 shall--
            ``(A) meet the Energy Star Program Requirements for
        Residential Light Fixtures version 4.0 issued by the
        Environmental Protection Agency; and
            ``(B) be packaged with lamps to fill all sockets.

    ``(4)(A) <<NOTE: Deadline. Requirements.>> By January 1, 2007, the
Secretary shall consider and issue requirements for any ceiling fan
lighting kits other than those covered in paragraphs (2) and (3),
including candelabra screw base sockets.

    ``(B) The requirements issued under subparagraph (A) shall be
effective for products manufactured 2 years after the date of the final
rule.
    ``(C) If the Secretary fails to issue a final rule by the date
specified in subparagraph (B), any type of ceiling fan lighting kit
described in subparagraph (A) that is manufactured after January 1,
2009--
            ``(i) shall not be capable of operating with lamps that
        total more than 190 watts; and
            ``(ii) shall include the lamps described in clause (i) in
        the ceiling fan lighting kits.

    ``(5)(A) After January 1, 2010, the Secretary may consider, and
issue, if the requirements of subsections (o) and (p) are met, amended
energy efficiency standards for ceiling fan light kits.
    ``(B) <<NOTE: Applicability.>> Any amended standards issued under
subparagraph (A) shall apply to products manufactured not earlier than 2
years after the date of publication of the final rule establishing the
amended standard.

    ``(6)(A) Notwithstanding any other provision of this Act, the
Secretary may consider, and issue, if the requirements of subsections
(o) and (p) are met, energy efficiency or energy use standards for
electricity used by ceiling fans to circulate air in a room.
    ``(B) In issuing the standards under subparagraph (A), the Secretary
shall consider--
            ``(C) exempting, or setting different standards for, certain
        product classes for which the primary standards are not
        technically feasible or economically justified; and

[[Page 119 STAT. 634]]

            ``(D) establishing separate exempted product classes for
        highly decorative fans for which air movement performance is a
        secondary design feature.

    ``(7) <<NOTE: Applicability.>> Section 327 shall apply to the
products covered in paragraphs (1) through (4) beginning on the date of
enactment of this subsection, except that any State or local labeling
requirement for ceiling fans prescribed or enacted before the date of
enactment of this subsection shall not be preempted until the labeling
requirements applicable to ceiling fans established under section 327
take effect.

    ``(gg) Application Date.--Section 327 applies--
            ``(1) to products for which energy conservation standards
        are to be established under subsection (l), (u), or (v)
        beginning on the date on which a final rule is issued by the
        Secretary, except that any State or local standard prescribed or
        enacted for the product before the date on which the final rule
        is issued shall not be preempted until the energy conservation
        standard established under subsection (l), (u), or (v) for the
        product takes effect; and
            ``(2) to products for which energy conservation standards
        are established under subsections (w) through (ff) on the date
        of enactment of those subsections, except that any State or
        local standard prescribed or enacted before the date of
        enactment of those subsections shall not be preempted until the
        energy conservation standards established under subsections (w)
        through (ff) take effect.''.

    (d) General Rule of Preemption.--Section 327(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6297(c)) is amended--
            (1) in paragraph (5), by striking ``or'' at the end;
            (2) in paragraph (6), by striking the period at the end and
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(7)(A) is a regulation concerning standards for commercial
        prerinse spray valves adopted by the California Energy
        Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in
        subparagraph (A) that was developed to align California
        regulations with changes in American Society for Testing and
        Materials Standard F2324;
            ``(8)(A) is a regulation concerning standards for pedestrian
        modules adopted by the California Energy Commission before
        January 1, 2005; or
            ``(B) is an amendment to a regulation described in
        subparagraph (A) that was developed to align California
        regulations to changes in the Institute for Transportation
        Engineers standards, entitled `Performance Specification:
        Pedestrian Traffic Control Signal Indications'.''.

SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.

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

[[Page 119 STAT. 635]]

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

[[Page 119 STAT. 636]]

            ``(D) The term `pull-down temperature application' means a
        commercial refrigerator with doors that, when fully loaded with
        12 ounce beverage cans at 90 degrees F, can cool those beverages
        to an average stable temperature of 38 degrees F in 12 hours or
        less.
            ``(E) The term `remote condensing unit' means a factory-made
        assembly of refrigerating components designed to compress and
        liquefy a specific refrigerant that is remotely located from the
        refrigerated equipment and consists of one or more refrigerant
        compressors, refrigerant condensers, condenser fans and motors,
        and factory supplied accessories.
            ``(F) The term `self-contained condensing unit' means a
        factory-made assembly of refrigerating components designed to
        compress and liquefy a specific refrigerant that is an integral
        part of the refrigerated equipment and consists of one or more
        refrigerant compressors, refrigerant condensers, condenser fans
        and motors, and factory supplied accessories.''; and
            (4) by adding at the end the following:
            ``(19) The term `automatic commercial ice maker' means a
        factory-made assembly (not necessarily shipped in one package)
        that--
                    ``(A) consists of a condensing unit and ice-making
                section operating as an integrated unit, with means for
                making and harvesting ice; and
                    ``(B) may include means for storing ice, dispensing
                ice, or storing and dispensing ice.
            ``(20) The term `commercial clothes washer' means a soft-
        mount front-loading or soft-mount top-loading clothes washer
        that--
                    ``(A) has a clothes container compartment that--
                          ``(i) for horizontal-axis clothes washers, is
                      not more than 3.5 cubic feet; and
                          ``(ii) for vertical-axis clothes washers, is
                      not more than 4.0 cubic feet; and
                    ``(B) is designed for use in--
                          ``(i) applications in which the occupants of
                      more than one household will be using the clothes
                      washer, such as multi-family housing common areas
                      and coin laundries; or
                          ``(ii) other commercial applications.
            ``(21) The term `harvest rate' means the amount of ice (at
        32 degrees F) in pounds produced per 24 hours.''.

    (b) Standards for Commercial Package Air Conditioning and Heating
Equipment.--Section 342(a) of the Energy Policy and Conservation Act (42
U.S.C. 6313(a)) is amended--
            (1) in the subsection heading, by striking ``Small and
        Large'' and inserting ``Small, Large, and Very Large'';
            (2) in paragraph (1), by inserting ``but before January 1,
        2010,'' after ``January 1, 1994,'';
            (3) in paragraph (2), by inserting ``but before January 1,
        2010,'' after ``January 1, 1995,''; and
            (4) in paragraph (6)--
                    (A) in subparagraph (A)--
                          (i) by inserting ``(i)'' after ``(A)'';
                          (ii) by striking ``the date of enactment of
                      the Energy Policy Act of 1992'' and inserting
                      ``January 1, 2010'';

[[Page 119 STAT. 637]]

                          (iii) by inserting after ``large commercial
                      package air conditioning and heating equipment,''
                      the following: ``and very large commercial package
                      air conditioning and heating equipment, or if
                      ASHRAE/IES Standard 90.1, as in effect on October
                      24, 1992, is amended with respect to any''; and
                          (iv) by adding at the end the following:

    ``(ii) If ASHRAE/IES Standard 90.1 is not amended with respect to
small commercial package air conditioning and heating equipment, large
commercial package air conditioning and heating equipment, and very
large commercial package air conditioning and heating equipment during
the 5-year period beginning on the effective date of a standard, the
Secretary may initiate a rulemaking to determine whether a more
stringent standard--
            ``(I) would result in significant additional conservation of
        energy; and
            ``(II) is technologically feasible and economically
        justified.''; and
                    (B) in subparagraph (C)(ii), by inserting ``and very
                large commercial package air conditioning and heating
                equipment'' after ``large commercial package air
                conditioning and heating equipment''; and
            (5) by adding at the end the following:

    ``(7) Small commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled
        central air conditioners at or above 65,000 Btu per hour
        (cooling capacity) and less than 135,000 Btu per hour (cooling
        capacity) shall be--
                    ``(i) 11.2 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 11.0 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled
        central air conditioner heat pumps at or above 65,000 Btu per
        hour (cooling capacity) and less than 135,000 Btu per hour
        (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 10.8 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating
        mode of air-cooled central air conditioning heat pumps at or
        above 65,000 Btu per hour (cooling capacity) and less than
        135,000 Btu per hour (cooling capacity) shall be 3.3 (at a high
        temperature rating of 47 degrees F db).

    ``(8) Large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled
        central air conditioners at or above 135,000 Btu per hour
        (cooling capacity) and less than 240,000 Btu per hour (cooling
        capacity) shall be--

[[Page 119 STAT. 638]]

                    ``(i) 11.0 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 10.8 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled
        central air conditioner heat pumps at or above 135,000 Btu per
        hour (cooling capacity) and less than 240,000 Btu per hour
        (cooling capacity) shall be--
                    ``(i) 10.6 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 10.4 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating
        mode of air-cooled central air conditioning heat pumps at or
        above 135,000 Btu per hour (cooling capacity) and less than
        240,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
        temperature rating of 47 degrees F db).

    ``(9) Very large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet the
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled
        central air conditioners at or above 240,000 Btu per hour
        (cooling capacity) and less than 760,000 Btu per hour (cooling
        capacity) shall be--
                    ``(i) 10.0 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 9.8 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled
        central air conditioner heat pumps at or above 240,000 Btu per
        hour (cooling capacity) and less than 760,000 Btu per hour
        (cooling capacity) shall be--
                    ``(i) 9.5 for equipment with no heating or electric
                resistance heating; and
                    ``(ii) 9.3 for equipment with all other heating
                system types that are integrated into the equipment (at
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating
        mode of air-cooled central air conditioning heat pumps at or
        above 240,000 Btu per hour (cooling capacity) and less than
        760,000 Btu per hour (cooling capacity) shall be 3.2 (at a high
        temperature rating of 47 degrees F db).''.

    (c) Standards for Commercial Refrigerators, Freezers, and
Refrigerator-Freezers.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the
following:
    ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
            ``(A) The term `AV' means the adjusted volume
        (ft<SUP>3</SUP>) (defined as 1.63 x frozen temperature
        compartment volume (ft<SUP>3</SUP>) + chilled temperature
        compartment volume (ft<SUP>3</SUP>)) with compartment volumes
        measured in accordance with the Association of Home Appliance
        Manufacturers Standard HRF1-1979.

[[Page 119 STAT. 639]]

            ``(B) The term `V' means the chilled or frozen compartment
        volume (ft<SUP>3</SUP>) (as defined in the Association of Home
        Appliance Manufacturers Standard HRF1-1979).
            ``(C) Other terms have such meanings as may be established
        by the Secretary, based on industry-accepted definitions and
        practice.

    ``(2) Each commercial refrigerator, freezer, and refrigerator-
freezer with a self-contained condensing unit designed for holding
temperature applications manufactured on or after January 1, 2010, shall
have a daily energy consumption (in kilowatt hours per day) that does
not exceed the following:

  Refrigerators with solid doors..  0.10 V + 2.04
  Refrigerators with transparent    0.12 V + 3.34
   doors.
  Freezers with solid doors.......  0.40 V + 1.38
  Freezers with transparent doors.  0.75 V + 4.10
  Refrigerators/freezers with       0.27 AV - 0.71 or 0.70.
   solid doors the greater of.

    ``(3) Each commercial refrigerator with a self-contained condensing
unit designed for pull-down temperature applications and transparent
doors manufactured on or after January 1, 2010, shall have a daily
energy consumption (in kilowatt hours per day) of not more than 0.126 V
+ 3.51.
    ``(4)(A) <<NOTE: Deadline. Regulations.>> Not later than January 1,
2009, the Secretary shall issue, by rule, standard levels for ice-cream
freezers, self-contained commercial refrigerators, freezers, and
refrigerator-freezers without doors, and remote condensing commercial
refrigerators, freezers, and refrigerator-freezers, with the standard
levels effective for equipment manufactured on or after January 1, 2012.

    ``(B) The Secretary may issue, by rule, standard levels for other
types of commercial refrigerators, freezers, and refrigerator-freezers
not covered by paragraph (2)(A) with the standard levels effective for
equipment manufactured 3 or more years after the date on which the final
rule is published.
    ``(5)(A) <<NOTE: Deadlines. Regulations.>> Not later than January 1,
2013, the Secretary shall issue a final rule to determine whether the
standards established under this subsection should be amended.

    ``(B) Not later than 3 years after the effective date of any amended
standards under subparagraph (A) or the publication of a final rule
determining that the standards should not be amended, the Secretary
shall issue a final rule to determine whether the standards established
under this subsection or the amended standards, as applicable, should be
amended.
    ``(C) <<NOTE: Applicability.>> If the Secretary issues a final rule
under subparagraph (A) or (B) establishing amended standards, the final
rule shall provide that the amended standards apply to products
manufactured on or after the date that is--
            ``(i) 3 years after the date on which the final amended
        standard is published; or
            ``(ii) if the Secretary determines, by rule, that 3 years is
        inadequate, not later than 5 years after the date on which the
        final rule is published.''.

    (d) Standards for Automatic Commercial Ice Makers.--Section 342 of
the Energy Policy and Conservation Act (42 U.S.C.

[[Page 119 STAT. 640]]

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

----------------------------------------------------------------------------------------------------------------
                                                                                Maximum Condenser
         Equipment Type             Type of     Harvest Rate (lbs ice/   Maximum Energy Use   Water Use (gal/100
                                    Cooling           24 hours)           (kWh/100 lbs Ice)        lbs Ice)
----------------------------------------------------------------------------------------------------------------
Ice Making Head                  Water         <500                     7.80-0.0055H          200-0.022H
                                              ------------------------------------------------------------------
                                               500 and <1436            5.58-0.0011H          200-0.022H
                                              ------------------------------------------------------------------
                                               1436                     4.0                   200-0.022H
----------------------------------------------------------------------------------------------------------------
Ice Making Head                  Air           <450                     10.26-0.0086H         Not Applicable
                                              ------------------------------------------------------------------
                                               450                      6.89-0.0011H          Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing                Air           <1000                    8.85-0.0038H          Not Applicable
(but not remote
compressor)
                                              ------------------------------------------------------------------
                                               1000                     5.10                  Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing                Air           <934                     8.85-0.0038H          Not Applicable
and Remote
Compressor
                                              ------------------------------------------------------------------
                                               934                      5.3                   Not Applicable
----------------------------------------------------------------------------------------------------------------
Self Contained                   Water         <200                     11.40-0.019H          191-0.0315H
                                              ------------------------------------------------------------------
                                               200                      7.60                  191-0.0315H
----------------------------------------------------------------------------------------------------------------
Self Contained                   Air           <175                     18.0-0.0469H          Not Applicable
                                              ------------------------------------------------------------------
                                               175                      9.80                  Not Applicable
----------------------------------------------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.

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

[[Page 119 STAT. 641]]

            ``(ii) <<NOTE: Deadline.>> if the Secretary determines, by
        rule, that 3 years is inadequate, not later than 5 years after
        the date on which the final rule is published.

    ``(3)(A) <<NOTE: Deadlines. Regulations.>> Not later than January 1,
2015, with respect to the standards established under paragraph (1),
and, with respect to the standards established under paragraph (2), not
later than 5 years after the date on which the standards take effect,
the Secretary shall issue a final rule to determine whether amending the
applicable standards is technologically feasible and economically
justified.

    ``(B) Not later than 5 years after the effective date of any amended
standards under subparagraph (A) or the publication of a final rule
determining that amending the standards is not technologically feasible
or economically justified, the Secretary shall issue a final rule to
determine whether amending the standards established under paragraph (1)
or the amended standards, as applicable, is technologically feasible or
economically justified.
    ``(C) <<NOTE: Applicability.>> If the Secretary issues a final rule
under subparagraph (A) or (B) establishing amended standards, the final
rule shall provide that the amended standards apply to products
manufactured on or after the date that is--
            ``(i) 3 years after the date on which the final amended
        standard is published; or
            ``(ii) if the Secretary determines, by rule, that 3 years is
        inadequate, not later than 5 years after the date on which the
        final amended standard is published.

    ``(4) A final rule issued under paragraph (2) or (3) shall establish
standards at the maximum level that is technically feasible and
economically justified, as provided in subsections (o) and (p) of
section 325.''.
    (e) Standards for Commercial Clothes Washers.--Section 342 of the
Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by
subsection (d)) is amended by adding at the end the following:
    ``(e) Commercial Clothes Washers.--(1) Each commercial clothes
washer manufactured on or after January 1, 2007, shall have--
            ``(A) a Modified Energy Factor of at least 1.26; and
            ``(B) a Water Factor of not more than 9.5.

    ``(2)(A)(i) <<NOTE: Deadlines. Publication. Regulations.>> Not later
than January 1, 2010, the Secretary shall publish a final rule to
determine whether the standards established under paragraph (1) should
be amended.

    ``(ii) <<NOTE: Applicability.>> The rule published under clause (i)
shall provide that any amended standard shall apply to products
manufactured 3 years after the date on which the final amended standard
is published.

    ``(B)(i) Not later than January 1, 2015, the Secretary shall publish
a final rule to determine whether the standards established under
paragraph (1) should be amended.
    ``(ii) <<NOTE: Applicability.>> The rule published under clause (i)
shall provide that any amended standard shall apply to products
manufactured 3 years after the date on which the final amended standard
is published.''.

    (f) Test Procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)--

[[Page 119 STAT. 642]]

                          (i) in subparagraph (A), by inserting ``very
                      large commercial package air conditioning and
                      heating equipment,'' after ``large commercial
                      package air conditioning and heating equipment,'';
                      and
                          (ii) in subparagraph (B), by inserting ``very
                      large commercial package air conditioning and
                      heating equipment,'' after ``large commercial
                      package air conditioning and heating equipment,'';
                      and
                    (B) by adding at the end the following:

    ``(6)(A)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers, the test procedures shall be--
            ``(I) the test procedures determined by the Secretary to be
        generally accepted industry testing procedures; or
            ``(II) rating procedures developed or recognized by the
        ASHRAE or by the American National Standards Institute.

    ``(ii) In the case of self-contained refrigerators, freezers, and
refrigerator-freezers to which standards are applicable under paragraphs
(2) and (3) of section 342(c), the initial test procedures shall be the
ASHRAE 117 test procedure that is in effect on January 1, 2005.
    ``(B)(i) In the case of commercial refrigerators, freezers, and
refrigerator-freezers with doors covered by the standards adopted in
February 2002, by the California Energy Commission, the rating
temperatures shall be the integrated average temperature of 38 degrees F
( <plus-minus>  2 degrees F) for refrigerator compartments and 0 degrees
F ( <plus-minus>  2 degrees F) for freezer compartments.
    ``(C) <<NOTE: Regulations.>> The Secretary shall issue a rule in
accordance with paragraphs (2) and (3) to establish the appropriate
rating temperatures for the other products for which standards will be
established under section 342(c)(4).

    ``(D) In establishing the appropriate test temperatures under this
subparagraph, the Secretary shall follow the procedures and meet the
requirements under section 323(e).
    ``(E)(i) <<NOTE: Deadline. Regulations.>> Not later than 180 days
after the publication of the new ASHRAE 117 test procedure, if the
ASHRAE 117 test procedure for commercial refrigerators, freezers, and
refrigerator-freezers is amended, the Secretary shall, by rule, amend
the test procedure for the product as necessary to ensure that the test
procedure is consistent with the amended ASHRAE 117 test procedure,
unless the Secretary makes a determination, by rule, and supported by
clear and convincing evidence, that to do so would not meet the
requirements for test procedures under paragraphs (2) and (3).

    ``(ii) <<NOTE: Notice. Federal Register, publication.>> If the
Secretary determines that 180 days is an insufficient period during
which to review and adopt the amended test procedure or rating procedure
under clause (i), the Secretary shall publish a notice in the Federal
Register stating the intent of the Secretary to wait not longer than 1
additional year before putting into effect an amended test procedure or
rating procedure.

    ``(F)(i) <<NOTE: Regulations.>> If a test procedure other than the
ASHRAE 117 test procedure is approved by the American National Standards
Institute, the Secretary shall, by rule--
            ``(I) review the relative strengths and weaknesses of the
        new test procedure relative to the ASHRAE 117 test procedure;
        and
            ``(II) based on that review, adopt one new test procedure
        for use in the standards program.

    ``(ii) <<NOTE: Applicability.>> If a new test procedure is adopted
under clause (i)--

[[Page 119 STAT. 643]]

            ``(I) section 323(e) shall apply; and
            ``(II) subparagraph (B) shall apply to the adopted test
        procedure.

    ``(7)(A) In the case of automatic commercial ice makers, the test
procedures shall be the test procedures specified in Air-Conditioning
and Refrigeration Institute Standard 810-2003, as in effect on January
1, 2005.
    ``(B)(i) <<NOTE: Regulations. Federal Register, publication.>> If
Air-Conditioning and Refrigeration Institute Standard 810-2003 is
amended, the Secretary shall amend the test procedures established in
subparagraph (A) as necessary to be consistent with the amended Air-
Conditioning and Refrigeration Institute Standard, unless the Secretary
determines, by rule, published in the Federal Register and supported by
clear and convincing evidence, that to do so would not meet the
requirements for test procedures under paragraphs (2) and (3).

    ``(ii) If the Secretary issues a rule under clause (i) containing a
determination described in clause (ii), the rule may establish an
amended test procedure for the product that meets the requirements of
paragraphs (2) and (3).
    ``(C) The Secretary shall comply with section 323(e) in establishing
any amended test procedure under this paragraph.
    ``(8) With respect to commercial clothes washers, the test
procedures shall be the same as the test procedures established by the
Secretary for residential clothes washers under section 325(g).''; and
            (2) in subsection (d)(1), by inserting ``very large
        commercial package air conditioning and heating equipment,
        commercial refrigerators, freezers, and refrigerator-freezers,
        automatic commercial ice makers, commercial clothes washers,''
        after ``large commercial package air conditioning and heating
        equipment,''.

    (g) Labeling.--Section 344(e) of the Energy Policy and Conservation
Act (42 U.S.C. 6315(e)) is amended by inserting ``very large commercial
package air conditioning and heating equipment, commercial
refrigerators, freezers, and refrigerator-freezers, automatic commercial
ice makers, commercial clothes washers,'' after ``large commercial
package air conditioning and heating equipment,'' each place it appears.
    (h) Administration, <<NOTE: Applicability.>> Penalties, Enforcement,
and Preemption.--Section 345 of the Energy Policy and Conservation Act
(42 U.S.C. 6316) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (7), by striking ``and'' at the
                end;
                    (B) in paragraph (8), by striking the period at the
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) in the case of commercial clothes washers, section
        327(b)(1) shall be applied as if the National Appliance Energy
        Conservation Act of 1987 was the Energy Policy Act of 2005.'';
            (2) in the first sentence of subsection (b)(1), by striking
        ``part B'' and inserting ``part A''; and
            (3) by adding at the end the following:

    ``(d)(1) Except as provided in paragraphs (2) and (3), section 327
shall apply with respect to very large commercial package air
conditioning and heating equipment to the same extent and in the same
manner as section 327 applies under part A on the date of enactment of
this subsection.

[[Page 119 STAT. 644]]

    ``(2) <<NOTE: Effective date.>> Any State or local standard issued
before the date of enactment of this subsection shall not be preempted
until the standards established under section 342(a)(9) take effect on
January 1, 2010.

    ``(e)(1)(A) <<NOTE: Applicability.>> Subsections (a), (b), and (d)
of section 326, subsections (m) through (s) of section 325, and sections
328 through 336 shall apply with respect to commercial refrigerators,
freezers, and refrigerator-freezers to the same extent and in the same
manner as those provisions apply under part A.

    ``(B) In applying those provisions to commercial refrigerators,
freezers, and refrigerator-freezers, paragraphs (1), (2), (3), and (4)
of subsection (a) shall apply.
    ``(2)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established
under paragraphs (2) and (3) of section 342(c) to the same extent and in
the same manner as those provisions apply under part A on the date of
enactment of this subsection, except that any State or local standard
issued before the date of enactment of this subsection shall not be
preempted until the standards established under paragraphs (2) and (3)
of section 342(c) take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(3)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are established
under section 342(c)(4) to the same extent and in the same manner as the
provisions apply under part A on the date of publication of the final
rule by the Secretary, except that any State or local standard issued
before the date of publication of the final rule by the Secretary shall
not be preempted until the standards take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A),
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(4)(A) If the Secretary does not issue a final rule for a specific
type of commercial refrigerator, freezer, or refrigerator-freezer within
the time frame specified in section 342(c)(5), subsections (b) and (c)
of section 327 shall not apply to that specific type of refrigerator,
freezer, or refrigerator-freezer for the period beginning on the date
that is 2 years after the scheduled date for a final rule and ending on
the date on which the Secretary publishes a final rule covering the
specific type of refrigerator, freezer, or refrigerator-freezer.
    ``(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the final
rule takes effect.
    ``(5)(A) <<NOTE: Certification.>> In the case of any commercial
refrigerator, freezer, or refrigerator-freezer to which standards are
applicable under paragraphs (2) and (3) of section 342(c), the Secretary
shall require manufacturers to certify, through an independent,
nationally recognized testing or certification program, that the
commercial refrigerator, freezer, or refrigerator-freezer meets the
applicable standard.

    ``(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 independent testing and
certification programs.
    ``(C) <<NOTE: Records.>> As part of certification, information on
equipment energy use and interior volume shall be made available to the
Secretary.

    ``(f)(1)(A)(i) <<NOTE: Applicability.>> Except as provided in clause
(ii), section 327 shall apply to automatic commercial ice makers for
which standards

[[Page 119 STAT. 645]]

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

SEC. 137. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Section 324(a)(2) of the Energy Policy and Conservation

[[Page 119 STAT. 646]]

Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the
following:
    ``(F)(i) <<NOTE: Deadlines.>> Not later than 90 days after the date
of enactment of this subparagraph, the Commission shall initiate a
rulemaking to consider--
            ``(I) the effectiveness of the consumer products labeling
        program in assisting consumers in making purchasing decisions
        and improving energy efficiency; and
            ``(II) changes to the labeling rules (including categorical
        labeling) that would improve the effectiveness of consumer
        product labels.

    ``(ii) Not later than 2 years after the date of enactment of this
subparagraph, the Commission shall complete the rulemaking initiated
under clause (i).
    ``(G)(i) <<NOTE: Deadline.>> Not later than 18 months after the date
of enactment of this subparagraph, the Commission shall issue by rule,
in accordance with this section, labeling requirements for the
electricity used by ceiling fans to circulate air in a room.

    ``(ii) <<NOTE: Applicability.>> The rule issued under clause (i)
shall apply to products manufactured after the later of--
            ``(I) January 1, 2009; or
            ``(II) the date that is 60 days after the final rule is
        issued.''.

    (b) Rulemaking on Labeling for Additional Products.--Section 324(a)
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is amended
by adding at the end the following:
    ``(5)(A) For covered products described in subsections (u) through
(ff) of section 325, after a test procedure has been prescribed under
section 323, the Secretary or the Commission, as appropriate, may
prescribe, by rule, under this section labeling requirements for the
products.
    ``(B) In the case of products to which TP-1 standards under section
325(y) apply, labeling requirements shall be based on the `Standard for
the Labeling of Distribution Transformer Efficiency' prescribed by the
National Electrical Manufacturers Association (NEMA TP-3) as in effect
on the date of enactment of this paragraph.
    ``(C) In the case of dehumidifiers covered under section 325(dd),
the Commission shall not require an `Energy Guide' label.''.

SEC. 138. INTERMITTENT ESCALATOR STUDY.

    (a) In General.--The Administrator of General Services shall conduct
a study on the advantages and disadvantages of employing intermittent
escalators in the United States.
    (b) Contents.--Such study shall include an analysis of--
            (1) the energy end-cost savings derived from the use of
        intermittent escalators;
            (2) the cost savings derived from reduced maintenance
        requirements; and
            (3) such other issues as the Administrator considers
        appropriate.

    (c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall transmit to Congress a
report on the results of the study.
    (d) Definition.--For purposes of this section, the term
``intermittent escalator'' means an escalator that remains in a
stationary

[[Page 119 STAT. 647]]

position until it automatically operates at the approach of a passenger,
returning to a stationary position after the passenger completes
passage.

SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES STUDY.

    (a) In General.--Not <<NOTE: Deadline.>> later than 1 year after the
date of enactment of this Act, the Secretary, in consultation with the
National Association of Regulatory Utility Commissioners and the
National Association of State Energy Officials, shall conduct a study of
State and regional policies that promote cost-effective programs to
reduce energy consumption (including energy efficiency programs) that
are carried out by--
            (1) utilities that are subject to State regulation; and
            (2) nonregulated utilities.

    (b) Consideration.--In conducting the study under subsection (a),
the Secretary shall take into consideration--
            (1) performance standards for achieving energy use and
        demand reduction targets;
            (2) funding sources, including rate surcharges;
            (3) infrastructure planning approaches (including energy
        efficiency programs) and infrastructure improvements;
            (4) the costs and benefits of consumer education programs
        conducted by State and local governments and local utilities to
        increase consumer awareness of energy efficiency technologies
        and measures; and
            (5) methods of--
                    (A) removing disincentives for utilities to
                implement energy efficiency programs;
                    (B) encouraging utilities to undertake voluntary
                energy efficiency programs; and
                    (C) ensuring appropriate returns on energy
                efficiency programs.

    (c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that
includes--
            (1) the findings of the study; and
            (2) any recommendations of the Secretary, including
        recommendations on model policies to promote energy efficiency
        programs.

SEC. 140. <<NOTE: 42 USC 15833.>> ENERGY EFFICIENCY PILOT PROGRAM.

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

[[Page 119 STAT. 648]]

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

SEC. 141. <<NOTE: 42 USC 15834.>> REPORT ON FAILURE TO COMPLY WITH
            DEADLINES FOR NEW OR REVISED ENERGY CONSERVATION STANDARDS.

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

                       Subtitle D--Public Housing

SEC. 151. PUBLIC HOUSING CAPITAL FUND.

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

[[Page 119 STAT. 649]]

                          ``(ii) Third party contracts.--Contracts
                      described in clause (i) may include contracts for
                      equipment conversions to less costly utility
                      sources, projects with resident-paid utilities,
                      and adjustments to frozen base year consumption,
                      including systems repaired to meet applicable
                      building and safety codes and adjustments for
                      occupancy rates increased by rehabilitation.
                          ``(iii) Term of contract.--The total term of a
                      contract described in clause (i) shall not exceed
                      20 years to allow longer payback periods for
                      retrofits, including windows, heating system
                      replacements, wall insulation, site-based
                      generation, advanced energy savings technologies,
                      including renewable energy generation, and other
                      such retrofits.''.

SEC. 152. <<NOTE: 42 USC 15841.>> ENERGY-EFFICIENT APPLIANCES.

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

SEC. 153. ENERGY EFFICIENCY STANDARDS.

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

[[Page 119 STAT. 650]]

            (3) in subsection (c)--
                    (A) in the heading, by inserting ``and the
                International Energy Conservation Code'' after ``Model
                Energy Code''; and
                    (B) by inserting ``, or, with respect to
                rehabilitation and new construction of public and
                assisted housing funded by HOPE VI revitalization grants
                under section 24 of the United States Housing Act of
                1937 (42 U.S.C. 1437v), the 2003 International Energy
                Conservation Code'' after ``1989''.

SEC. 154. <<NOTE: 42 USC 15842.>> ENERGY STRATEGY FOR HUD.

    The Secretary of Housing and Urban Development shall develop and
implement an integrated strategy to reduce utility expenses through
cost-effective energy conservation and efficiency measures and energy
efficient design and construction of public and assisted housing. The
energy strategy shall include the development of energy reduction goals
and incentives for public housing agencies.
The <<NOTE: Reports. Deadlines.>> Secretary shall submit a report to
Congress, not later than 1 year after the date of the enactment of this
Act, on the energy strategy and the actions taken by the Department of
Housing and Urban Development to monitor the energy usage of public
housing agencies and shall submit an update every 2 years thereafter on
progress in implementing the strategy.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. <<NOTE: 42 USC 15851.>> ASSESSMENT OF RENEWABLE ENERGY
            RESOURCES.

    (a) Resource Assessment.--Not <<NOTE: Deadlines.>> later than 6
months after the date of enactment of this Act, and each year
thereafter, the Secretary shall review the available assessments of
renewable energy resources within the United States, including solar,
wind, biomass, ocean (including tidal, wave, current, and thermal),
geothermal, and hydroelectric energy resources, and undertake new
assessments as necessary, taking into account changes in market
conditions, available technologies, and other relevant factors.

    (b) Contents of Reports.--Not later than 1 year after the date of
enactment of this Act, and each year thereafter, the Secretary shall
publish a report based on the assessment under subsection (a). The
report shall contain--
            (1) a detailed inventory describing the available amount and
        characteristics of the renewable energy resources; and
            (2) such other information as the Secretary believes would
        be useful in developing such renewable energy resources,
        including descriptions of surrounding terrain, population and
        load centers, nearby energy infrastructure, location of energy
        and water resources, and available estimates of the costs needed
        to develop each resource, together with an identification of any
        barriers to providing adequate transmission for remote sources
        of renewable energy resources to current and emerging markets,
        recommendations for removing or addressing such barriers, and
        ways to provide access to the grid that do not unfairly
        disadvantage renewable or other energy producers.

[[Page 119 STAT. 651]]

    (c) Authorization of Appropriations.--For <<NOTE: 42 USC 13311
note.>> the purposes of this section, there are authorized to be
appropriated to the Secretary $10,000,000 for each of fiscal years 2006
through 2010.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act of
1992 (42 U.S.C. 13317(a)) is amended--
            (1) by striking the last sentence;
            (2) by designating the first, second, and third sentences as
        paragraphs (1), (2), and (3), respectively;
            (3) in paragraph (3) (as so designated), by striking ``and
        which satisfies'' and all that follows through ``deems
        necessary''; and
            (4) by adding at the end the following:

    ``(4)(A) Subject to subparagraph (B), if there are insufficient
appropriations to make full payments for electric production from all
qualified renewable energy facilities for a fiscal year, the Secretary
shall assign--
            ``(i) 60 percent of appropriated funds for the fiscal year
        to facilities that use solar, wind, ocean (including tidal,
        wave, current, and thermal), geothermal, or closed-loop
        (dedicated energy crops) biomass technologies to generate
        electricity; and
            ``(ii) 40 percent of appropriated funds for the fiscal year
        to other projects.

    ``(B) After submitting to Congress an explanation of the reasons for
the alteration, the Secretary may alter the percentage requirements of
subparagraph (A).''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that
        follows through ``nonprofit electrical cooperative'' and
        inserting ``a not-for-profit electric cooperative, a public
        utility described in section 115 of the Internal Revenue Code of
        1986, a State, Commonwealth, territory, or possession of the
        United States, or the District of Columbia, or a political
        subdivision thereof, an Indian tribal government or subdivision
        thereof, or a Native Corporation (as defined in section 3 of the
        Alaska Native Claims Settlement Act (43 U.S.C. 1602)),''; and
            (2) by inserting ``landfill gas, livestock methane, ocean
        (including tidal, wave, current, and thermal),'' after ``wind,
        biomass,''.

    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act of
1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-fiscal
year period beginning with the first full fiscal year occurring after
the enactment of this section'' and inserting ``before October 1,
2016''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy Act of
1992 (42 U.S.C. 13317(d)) is amended in the second sentence by inserting
``, or in which the Secretary determines that all necessary Federal and
State authorizations have been obtained to begin construction of the
facility'' after ``eligible for such payments''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act
of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first sentence by
inserting ``landfill gas, livestock methane, ocean (including tidal,
wave, current, and thermal),'' after ``wind, biomass,''.

[[Page 119 STAT. 652]]

    (f) Termination of Authority.--Section 1212(f) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking ``the expiration
of'' and all that follows through ``of this section'' and inserting
``September 30, 2026''.
    (g) Authorization of Appropriations.--Section 1212 of the Energy
Policy Act of 1992 (42 U.S.C. 13317) is amended by striking subsection
(g) and inserting the following:
    ``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2006 through 2026, to remain available until
expended.''.

SEC. 203. <<NOTE: 42 USC 15852.>> FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The <<NOTE: President.>> President, acting through
the Secretary, shall seek to ensure that, to the extent economically
feasible and technically practicable, of the total amount of electric
energy the Federal Government consumes during any fiscal year, the
following amounts shall be renewable energy:
            (1) Not less than 3 percent in fiscal years 2007 through
        2009.
            (2) Not less than 5 percent in fiscal years 2010 through
        2012.
            (3) Not less than 7.5 percent in fiscal year 2013 and each
        fiscal year thereafter.

    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any lignin waste
        material that is segregated from other waste materials and is
        determined to be nonhazardous by the Administrator of the
        Environmental Protection Agency and any solid, nonhazardous,
        cellulosic material that is derived from--
                    (A) any of the following forest-related resources:
                mill residues, precommercial thinnings, slash, and
                brush, or nonmerchantable material;
                    (B) solid wood waste materials, including waste
                pallets, crates, dunnage, manufacturing and construction
                wood wastes (other than pressure-treated, chemically-
                treated, or painted wood wastes), and landscape or
                right-of-way tree trimmings, but not including municipal
                solid waste (garbage), gas derived from the
                biodegradation of solid waste, or paper that is commonly
                recycled;
                    (C) agriculture wastes, including orchard tree
                crops, vineyard, grain, legumes, sugar, and other crop
                by-products or residues, and livestock waste nutrients;
                or
                    (D) a plant that is grown exclusively as a fuel for
                the production of electricity.
            (2) Renewable energy.--The term ``renewable energy'' means
        electric energy generated from solar, wind, biomass, landfill
        gas, ocean (including tidal, wave, current, and thermal),
        geothermal, municipal solid waste, or new hydroelectric
        generation capacity achieved from increased efficiency or
        additions of new capacity at an existing hydroelectric project.

    (c) Calculation.--For purposes of determining compliance with the
requirement of this section, the amount of renewable energy shall be
doubled if--
            (1) the renewable energy is produced and used on-site at a
        Federal facility;

[[Page 119 STAT. 653]]

            (2) the renewable energy is produced on Federal lands and
        used at a Federal facility; or
            (3) the renewable energy is produced on Indian land as
        defined in title XXVI of the Energy Policy Act of 1992 (25
        U.S.C. 3501 et seq.) and used at a Federal facility.

    (d) Report.--Not later than April 15, 2007, and every 2 years
thereafter, the Secretary shall provide a report to Congress on the
progress of the Federal Government in meeting the goals established by
this section.

SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Subchapter VI of chapter 31 of title 40, United
States Code, is amended by adding at the end the following:

``Sec. 3177. Use of photovoltaic energy in public buildings

    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Administrator of General Services may
        establish a photovoltaic energy commercialization program for
        the procurement and installation of photovoltaic solar electric
        systems for electric production in new and existing public
        buildings.
            ``(2) Purposes.--The purposes of the program shall be to
        accomplish the following:
                    ``(A) To accelerate the growth of a commercially
                viable photovoltaic industry to make this energy system
                available to the general public as an option which can
                reduce the national consumption of fossil fuel.
                    ``(B) To reduce the fossil fuel consumption and
                costs of the Federal Government.
                    ``(C) To attain the goal of installing solar energy
                systems in 20,000 Federal buildings by 2010, as
                contained in the Federal Government's Million Solar Roof
                Initiative of 1997.
                    ``(D) To stimulate the general use within the
                Federal Government of life-cycle costing and innovative
                procurement methods.
                    ``(E) To develop program performance data to support
                policy decisions on future incentive programs with
                respect to energy.
            ``(3) Acquisition of photovoltaic solar electric systems.--
                    ``(A) In general.--The program shall provide for the
                acquisition of photovoltaic solar electric systems and
                associated storage capability for use in public
                buildings.
                    ``(B) Acquisition levels.--The acquisition of
                photovoltaic electric systems shall be at a level
                substantial enough to allow use of low-cost production
                techniques with at least 150 megawatts (peak) cumulative
                acquired during the 5 years of the program.
            ``(4) Administration.--The Administrator shall administer
        the program and shall--
                    ``(A) issue such rules and regulations as may be
                appropriate to monitor and assess the performance and
                operation of photovoltaic solar electric systems
                installed pursuant to this subsection;
                    ``(B) <<NOTE: Reports.>> develop innovative
                procurement strategies for the acquisition of such
                systems; and

[[Page 119 STAT. 654]]

                    ``(C) transmit to Congress an annual report on the
                results of the program.

    ``(b) Photovoltaic Systems Evaluation Program.--
            ``(1) In general.--Not <<NOTE: Deadline.>> later than 60
        days after the date of enactment of this section, the
        Administrator shall establish a photovoltaic solar energy
        systems evaluation program to evaluate such photovoltaic solar
        energy systems as are required in public buildings.
            ``(2) Program requirement.--In evaluating photovoltaic solar
        energy systems under the program, the Administrator shall ensure
        that such systems reflect the most advanced technology.

    ``(c) Authorization of Appropriations.--
            ``(1) Photovoltaic energy commercialization program.--There
        are authorized to be appropriated to carry out subsection (a)
        $50,000,000 for each of fiscal years 2006 through 2010. Such
        sums shall remain available until expended.
            ``(2) Photovoltaic systems evaluation program.--There are
        authorized to be appropriated to carry out subsection (b)
        $10,000,000 for each of fiscal years 2006 through 2010. Such
        sums shall remain available until expended.''.

    (b) Conforming Amendment.--The table of sections for the National
Energy Conservation Policy Act is amended by inserting after the item
relating to section 569 the following:

``Sec. 570. Use of photovoltaic energy in public buildings.''.

SEC. 205. BIOBASED PRODUCTS.

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

SEC. 206. RENEWABLE ENERGY SECURITY.

    (a) Weatherization Assistance.--Section 415(c) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)) is amended--
            (1) in paragraph (1), by striking ``in paragraph (3)'' and
        inserting ``in paragraphs (3) and (4)'';
            (2) in paragraph (3), by striking ``$2,500 per dwelling unit
        average provided in paragraph (1)'' and inserting ``dwelling
        unit averages provided in paragraphs (1) and (4)''; and
            (3) by adding at the end the following new paragraphs:

    ``(4) The expenditure of financial assistance provided under this
part for labor, weatherization materials, and related matters for a
renewable energy system shall not exceed an average of $3,000 per
dwelling unit.
    ``(5)(A) <<NOTE: Regulations.>> The Secretary shall by regulations--
            ``(i) establish the criteria which are to be used in
        prescribing performance and quality standards under paragraph
        (6)(A)(ii) or in specifying any form of renewable energy under
        paragraph (6)(A)(i)(I); and
            ``(ii) establish a procedure under which a manufacturer of
        an item may request the Secretary to certify that the item will
        be treated, for purposes of this paragraph, as a renewable
        energy system.

    ``(B) The Secretary shall make a final determination with respect to
any request filed under subparagraph (A)(ii) within 1

[[Page 119 STAT. 655]]

year after the filing of the request, together with any information
required to be filed with such request under subparagraph (A)(ii).
    ``(C) <<NOTE: Reports.>> Each month the Secretary shall publish a
report of any request under subparagraph (A)(ii) which has been denied
during the preceding month and the reasons for the denial.

    ``(D) The Secretary shall not specify any form of renewable energy
under paragraph (6)(A)(i)(I) unless the Secretary determines that--
            ``(i) there will be a reduction in oil or natural gas
        consumption as a result of such specification;
            ``(ii) such specification will not result in an increased
        use of any item which is known to be, or reasonably suspected to
        be, environmentally hazardous or a threat to public health or
        safety; and
            ``(iii) available Federal subsidies do not make such
        specification unnecessary or inappropriate (in the light of the
        most advantageous allocation of economic resources).

    ``(6) In this subsection--
            ``(A) the term `renewable energy system' means a system
        which--
                    ``(i) when installed in connection with a dwelling,
                transmits or uses--
                          ``(I) solar energy, energy derived from the
                      geothermal deposits, energy derived from biomass,
                      or any other form of renewable energy which the
                      Secretary specifies by regulations, for the
                      purpose of heating or cooling such dwelling or
                      providing hot water or electricity for use within
                      such dwelling; or
                          ``(II) wind energy for nonbusiness residential
                      purposes;
                    ``(ii) meets the performance and quality standards
                (if any) which have been prescribed by the Secretary by
                regulations;
                    ``(iii) in the case of a combustion rated system,
                has a thermal efficiency rating of at least 75 percent;
                and
                    ``(iv) in the case of a solar system, has a thermal
                efficiency rating of at least 15 percent; and
            ``(B) the term `biomass' means any organic matter that is
        available on a renewable or recurring basis, including
        agricultural crops and trees, wood and wood wastes and residues,
        plants (including aquatic plants), grasses, residues, fibers,
        and animal wastes, municipal wastes, and other waste
        materials.''.

    (b) District Heating and Cooling Programs.--Section 172 of the
Energy Policy Act of 1992 (42 U.S.C. 13451 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph (3);
                    (B) by striking the period at the end of paragraph
                (4) and inserting ``; and''; and
                    (C) by adding at the end the following new
                paragraph:
            ``(5) evaluate the use of renewable energy systems (as such
        term is defined in section 415(c) of the Energy Conservation and
        Production Act (42 U.S.C. 6865(c))) in residential buildings.'';
        and
            (2) in subsection (b), by striking ``this Act'' and
        inserting ``the Energy Policy Act of 2005''.

    (c) Rebate <<NOTE: 42 USC 15853.>> Program.--

[[Page 119 STAT. 656]]

            (1) Establishment.--The Secretary shall establish a program
        providing rebates for consumers for expenditures made for the
        installation of a renewable energy system in connection with a
        dwelling unit or small business.
            (2) Amount of rebate.--Rebates provided under the program
        established under paragraph (1) shall be in an amount not to
        exceed the lesser of--
                    (A) 25 percent of the expenditures described in
                paragraph (1) made by the consumer; or
                    (B) $3,000.
            (3) Definition.--For purposes of this subsection, the term
        ``renewable energy system'' has the meaning given that term in
        section 415(c)(6)(A) of the Energy Conservation and Production
        Act (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) of
        this section.
            (4) Authorization of appropriations.--There are authorized
        to be appropriated to the Secretary for carrying out this
        subsection, to remain available until expended--
                    (A) $150,000,000 for fiscal year 2006;
                    (B) $150,000,000 for fiscal year 2007;
                    (C) $200,000,000 for fiscal year 2008;
                    (D) $250,000,000 for fiscal year 2009; and
                    (E) $250,000,000 for fiscal year 2010.

    (d) Renewable Fuel Inventory.--
Not <<NOTE: Deadline. Reports.>> later than 180 days after the date of
enactment of this Act, the Secretary shall transmit to Congress a report
containing--
            (1) an inventory of renewable fuels available for consumers;
        and
            (2) a projection of future inventories of renewable fuels
        based on the incentives provided in this section.

SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.

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

SEC. 208. <<NOTE: 42 USC 15854.>> SUGAR CANE ETHANOL PROGRAM.

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

[[Page 119 STAT. 657]]

                          (ii) at the option of each such State, that
                      have an incentive program that requires the use of
                      ethanol in the State; and
                    (B) designed to study the production of ethanol from
                cane sugar, sugarcane, and sugarcane byproducts.
            (2) Requirements.--A project described in paragraph (1)
        shall--
                    (A) be limited to sugar producers and the production
                of ethanol in the States of Florida, Louisiana, Texas,
                and Hawaii, divided equally among the States, to
                demonstrate that the process may be applicable to cane
                sugar, sugarcane, and sugarcane byproducts;
                    (B) include information on the ways in which the
                scale of production may be replicated once the sugar
                cane industry has located sites for, and constructed,
                ethanol production facilities; and
                    (C) not last more than 3 years.

    (d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $36,000,000, to remain available
until expended.

SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

    The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601
et seq.) is amended in title VI by adding at the end the following:

``SEC. 609. <<NOTE: 7 USC 918c.>> RURAL AND REMOTE COMMUNITIES
            ELECTRIFICATION GRANTS.

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

    ``(b) Grants.--The Secretary, in consultation with the Secretary of
Agriculture and the Secretary of the Interior, may provide grants under
this section to eligible grantees for the purpose of--

[[Page 119 STAT. 658]]

            ``(1) increasing energy efficiency, siting or upgrading
        transmission and distribution lines serving rural areas; or
            ``(2) providing or modernizing electric generation
        facilities that serve rural areas.

    ``(c) Grant Administration.--(1) The Secretary shall make grants
under this section based on a determination of cost-effectiveness and
the most effective use of the funds to achieve the purposes described in
subsection (b).
    ``(2) For each fiscal year, the Secretary shall allocate grant funds
under this section equally between the purposes described in paragraphs
(1) and (2) of subsection (b).
    ``(3) In making grants for the purposes described in subsection
(b)(2), the Secretary shall give preference to renewable energy
facilities.
    ``(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $20,000,000 for
each of fiscal years 2006 through 2012.''.

SEC. 210. <<NOTE: 42 USC 15855.>> GRANTS TO IMPROVE THE COMMERCIAL VALUE
            OF FOREST BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
            TRANSPORTATION FUELS, AND OTHER COMMERCIAL PURPOSES.

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

[[Page 119 STAT. 659]]

                      which is at significant risk of catastrophic
                      wildfire, disease, or insect infestation or which
                      suffers from disease or insect infestation; or
                    (C) any county that--
                          (i) is not contained within a metropolitan
                      statistical area; and
                          (ii) the Secretary concerned, in the sole
                      discretion of the Secretary concerned, determines
                      contains or is located near Federal or Indian
                      land, the condition of which is at significant
                      risk of catastrophic wildfire, disease, or insect
                      infestation or which suffers from disease or
                      insect infestation.
            (6) Secretary concerned.--The term ``Secretary concerned''
        means the Secretary of Agriculture or the Secretary of the
        Interior.

    (b) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make grants to
        any person in a preferred community that owns or operates a
        facility that uses biomass as a raw material to produce electric
        energy, sensible heat, or transportation fuels to offset the
        costs incurred to purchase biomass for use by such facility.
            (2) Grant amounts.--A grant under this subsection may not
        exceed $20 per green ton of biomass delivered.
            (3) Monitoring of grant recipient activities.--As a
        condition of a grant under this subsection, the grant recipient
        shall keep such records as the Secretary concerned may require
        to fully and correctly disclose the use of the grant funds and
        all transactions involved in the purchase of biomass. Upon
        notice by a representative of the Secretary concerned, the grant
        recipient shall afford the representative reasonable access to
        the facility that purchases or uses biomass and an opportunity
        to examine the inventory and records of the facility.

    (c) Improved Biomass Use Grant Program.--
            (1) In general.--The Secretary concerned may make grants to
        persons to offset the cost of projects to develop or research
        opportunities to improve the use of, or add value to, biomass.
        In making such grants, the Secretary concerned shall give
        preference to persons in preferred communities.
            (2) Selection.--The Secretary concerned shall select a grant
        recipient under paragraph (1) after giving consideration to--
                    (A) the anticipated public benefits of the project,
                including the potential to develop thermal or electric
                energy resources or affordable energy;
                    (B) opportunities for the creation or expansion of
                small businesses and micro-businesses;
                    (C) the potential for new job creation;
                    (D) the potential for the project to improve
                efficiency or develop cleaner technologies for biomass
                utilization; and
                    (E) the potential for the project to reduce the
                hazardous fuels from the areas in greatest need of
                treatment.
            (3) Grant amount.--A grant under this subsection may not
        exceed $500,000.

    (d) Authorization of Appropriations.--There are authorized to be
appropriated $50,000,000 for each of the fiscal years 2006 through 2016
to carry out this section.

[[Page 119 STAT. 660]]

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

SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF ELECTRICITY
            FROM RENEWABLE ENERGY RESOURCES ON PUBLIC LANDS.

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

    Subtitle B--Geothermal <<NOTE: John Rishel Geothermal Steam Act
Amendments of 2005.>> Energy

SEC. 221. <<NOTE: 30 USC 1001 note.>> SHORT TITLE.

    This subtitle may be cited as the ``John Rishel Geothermal Steam Act
Amendments of 2005''.

SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.

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

``SEC. 4. LEASING PROCEDURES.

    ``(a) Nominations.--The Secretary shall accept nominations of land
to be leased at any time from qualified companies and individuals under
this Act.
    ``(b) Competitive Lease Sale Required.--
            ``(1) In general.--Except as otherwise specifically provided
        by this Act, all land to be leased that is not subject to
        leasing under subsection (c) shall be leased as provided in this
        subsection to the highest responsible qualified bidder, as
        determined by the Secretary.
            ``(2) Competitive lease sales.--The Secretary shall hold a
        competitive lease sale at least once every 2 years for land in a
        State that has nominations pending under subsection (a) if the
        land is otherwise available for leasing.
            ``(3) Lands subject to mining claims.--Lands that are
        subject to a mining claim for which a plan of operations has
        been approved by the relevant Federal land management agency may
        be available for noncompetitive leasing under this section to
        the mining claim holder.

    ``(c) Noncompetitive Leasing.--The Secretary shall make available
for a period of 2 years for noncompetitive leasing any

[[Page 119 STAT. 661]]

tract for which a competitive lease sale is held, but for which the
Secretary does not receive any bids in a competitive lease sale.
    ``(d) Pending Lease Applications.--
            ``(1) In general.--It shall be a priority for the Secretary,
        and for the Secretary of Agriculture with respect to National
        Forest Systems land, to ensure timely completion of
        administrative actions, including amendments to applicable
        forest plans and resource management plans, necessary to process
        applications for geothermal leasing pending on the date of
        enactment of this subsection. All future forest plans and
        resource management plans for areas with high geothermal
        resource potential shall consider geothermal leasing and
        development.
            ``(2) Administration.--An application described in paragraph
        (1) and any lease issued pursuant to the application--
                    ``(A) except as provided in subparagraph (B), shall
                be subject to this section as in effect on the day
                before the date of enactment of this paragraph; or
                    ``(B) at the election of the applicant, shall be
                subject to this section as in effect on the effective
                date of this paragraph.

    ``(e) Leases Sold as a Block.--If information is available to the
Secretary indicating a geothermal resource that could be produced as 1
unit can reasonably be expected to underlie more than 1 parcel to be
offered in a competitive lease sale, the parcels for such a resource may
be offered for bidding as a block in the competitive lease sale.''.

SEC. 223. DIRECT USE.

    (a) Fees for Direct Use.--Section 5 of the Geothermal Steam Act of
1970 (30 U.S.C. 1004) is amended--
            (1) in subsection (c), by redesignating paragraphs (1) and
        (2) as subparagraphs (A) and (B), respectively;
            (2) by redesignating subsections (a) through (d) as
        paragraphs (1) through (4), respectively;
            (3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
        and
            (4) by adding at the end the following:

    ``(b) Direct Use.--
            ``(1) In general.--
        Notwithstanding <<NOTE: Fees.>> subsection (a)(1), the Secretary
        shall establish a schedule of fees, in lieu of royalties for
        geothermal resources, that a lessee or its affiliate--
                    ``(A) uses for a purpose other than the commercial
                generation of electricity; and
                    ``(B) does not sell.
            ``(2) Schedule of fees.--The schedule of fees--
                    ``(A) may be based on the quantity or thermal
                content, or both, of geothermal resources used;
                    ``(B) shall ensure a fair return to the United
                States for use of the resource; and
                    ``(C) shall encourage development of the resource.
            ``(3) State, tribal, or local governments.--If a State,
        tribal, or local government is the lessee and uses geothermal
        resources without sale and for public purposes other than
        commercial generation of electricity, the Secretary shall charge
        only a nominal fee for use of the resource.

[[Page 119 STAT. 662]]

            ``(4) Final regulation.--In issuing any final regulation
        establishing a schedule of fees under this subsection, the
        Secretary shall seek--
                    ``(A) to provide lessees with a simplified
                administrative system;
                    ``(B) to facilitate development of direct use of
                geothermal resources; and
                    ``(C) to contribute to sustainable economic
                development opportunities in the area.''.

    (b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act
of 1970 (30 U.S.C. 1003) (as amended by section 222) is further amended
by adding at the end the following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify areas in
which the land to be leased under this Act exclusively for direct use of
geothermal resources, without sale for purposes other than commercial
generation of electricity, may be leased to any qualified applicant that
first applies for such a lease under regulations issued by the
Secretary, if the Secretary--
            ``(1) <<NOTE: Notice. Deadline.>> publishes a notice of the
        land proposed for leasing not later than 90 days before the date
        of the issuance of the lease;
            ``(2) does not receive during the 90-day period beginning on
        the date of the publication any nomination to include the land
        concerned in the next competitive lease sale; and
            ``(3) determines there is no competitive interest in the
        geothermal resources in the land to be leased.

    ``(g) Area Subject to Lease for Direct Use.--
            ``(1) In general.--Subject to paragraph (2), a geothermal
        lease for the direct use of geothermal resources shall cover not
        more than the quantity of acreage determined by the Secretary to
        be reasonably necessary for the proposed use.
            ``(2) Limitations.--The quantity of acreage covered by the
        lease shall not exceed the limitations established under section
        7.''.

    (c) Application of New Lease Terms.--The <<NOTE: 30 USC 1004
note.>> schedule of fees established under the amendment made by
subsection (a)(4) shall apply with respect to payments under a lease
converted under this subsection that are due and owing, and have been
paid, on or after July 16, 2003. This subsection shall not require the
refund of royalties paid to a State under section 20 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1019) prior to the date of enactment of
this Act.

SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

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

[[Page 119 STAT. 663]]

                    ``(B) not less than 2 and not more than 5 percent of
                the gross proceeds from the sale of electricity produced
                from such resources during each year after such 10-year
                period;''; and
            (2) by adding at the end the following:

    ``(c) Final Regulation Establishing Royalty Rates.--In issuing any
final regulation establishing royalty rates under this section, the
Secretary shall seek--
            ``(1) to provide lessees a simplified administrative system;
            ``(2) to encourage new development; and
            ``(3) to achieve the same level of royalty revenues over a
        10-year period as the regulation in effect on the date of
        enactment of this subsection.

    ``(d) Credits for In-Kind Payments of Electricity.--The Secretary
may provide to a lessee a credit against royalties owed under this Act,
in an amount equal to the value of electricity provided under contract
to a State or county government that is entitled to a portion of such
royalties under section 20 of this Act, section 35 of the Mineral
Leasing Act (30 U.S.C. 191), except as otherwise provided by this
section, or section 6 of the Mineral Leasing Act for Acquired Lands (30
U.S.C. 355), if--
            ``(1) the Secretary has approved in advance the contract
        between the lessee and the State or county government for such
        in-kind payments;
            ``(2) the contract establishes a specific methodology to
        determine the value of such credits; and
            ``(3) the maximum credit will be equal to the royalty value
        owed to the State or county that is a party to the contract and
        the electricity received will serve as the royalty payment from
        the Federal Government to that entity.''.

    (b) Disposal of Moneys From Sales, Bonuses, Royalties, and Rents.--
Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is
amended to read as follows:

``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND
            ROYALTIES.

    ``(a) In General.--Except with respect to lands in the State of
Alaska, all monies received by the United States from sales, bonuses,
rentals, and royalties under this Act shall be paid into the Treasury of
the United States. Of amounts deposited under this subsection, subject
to the provisions of subsection (b) of section 35 of the Mineral Leasing
Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act--
            ``(1) 50 percent shall be paid to the State within the
        boundaries of which the leased lands or geothermal resources are
        or were located; and
            ``(2) 25 percent shall be paid to the county within the
        boundaries of which the leased lands or geothermal resources are
        or were located.

    ``(b) Use of Payments.--Amounts paid to a State or county under
subsection (a) shall be used consistent with the terms of section 35 of
the Mineral Leasing Act (30 U.S.C. 191).''.
    (c) Near-Term Production <<NOTE: 30 USC 1004 note.>> Incentive for
Existing Leases.--
            (1) In general.--Notwithstanding section 5(a) of the
        Geothermal Steam Act of 1970, the royalty required to be paid
        shall be 50 percent of the amount of the royalty otherwise
        required, on any lease issued before the date of enactment

[[Page 119 STAT. 664]]

        of this Act that does not convert to new royalty terms under
        subsection (e)--
                    (A) with respect to commercial production of energy
                from a facility that begins such production in the 6-
                year period beginning on the date of enactment of this
                Act; or
                    (B) on qualified expansion geothermal energy.
            (2) 4-year application.--Paragraph (1) applies only to new
        commercial production of energy from a facility in the first 4
        years of such production.

    (d) Definition of Qualified Expansion Geothermal Energy.--In this
section, the term ``qualified expansion geothermal energy'' means
geothermal energy produced from a generation facility for which--
            (1) the production is increased by more than 10 percent as a
        result of expansion of the facility carried out in the 6-year
        period beginning on the date of enactment of this Act; and
            (2) such production increase is greater than 10 percent of
        the average production by the facility during the 5-year period
        preceding the expansion of the facility (as such average is
        adjusted to reflect any trend in changes in production during
        that period).

    (e) Royalty Under Existing Leases.--
            (1) In general.--Any lessee under a lease issued under the
        Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before the
        date of enactment of this Act may, within the time period
        specified in paragraph (2), submit to the Secretary of the
        Interior a request to modify the terms of the lease relating to
        payment of royalties to provide--
                    (A) in the case of a lease that meets the
                requirements of subsection (b) of section 5 of the
                Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
                amended by section 223), that royalties be based on the
                schedule of fees established under that section; and
                    (B) in the case of any other lease, that royalties
                be computed on a percentage of the gross proceeds from
                the sale of electricity, at a royalty rate that is
                expected to yield total royalty payments equivalent to
                payments that would have been received for comparable
                production under the royalty rate in effect for the
                lease before the date of enactment of this subsection.
            (2) Timing.--A <<NOTE: Deadlines.>> request for a
        modification under paragraph (1) shall be submitted to the
        Secretary of the Interior by the date that is not later than--
                    (A) in the case of a lease for direct use, 18 months
                after the effective date of the schedule of fees
                established by the Secretary of the Interior under
                section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
                1004); or
                    (B) in the case of any other lease, 18 months after
                the effective date of the final regulation issued under
                subsection (a).
            (3) Application of modification.--If the lessee requests
        modification of a lease under paragraph (1)--
                    (A) <<NOTE: Deadline.>> the Secretary of the
                Interior shall, within 180 days after the receipt of the
                request for modification, modify the lease to comply
                with--

[[Page 119 STAT. 665]]

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

SEC. 225. <<NOTE: 42 USC 15871.>> COORDINATION OF GEOTHERMAL LEASING AND
            PERMITTING ON FEDERAL LANDS.

    (a) In General.--Not <<NOTE: Deadline. Memorandum.>> later than 180
days after the date of enactment of this section, the Secretary of the
Interior and the Secretary of Agriculture shall enter into and submit to
Congress a memorandum of understanding in accordance with this section,
the Geothermal Steam Act of 1970 (as amended by this Act), and other
applicable laws, regarding coordination of leasing and permitting for
geothermal development of public lands and National Forest System lands
under their respective jurisdictions.

    (b) Lease and Permit Applications.--The memorandum of understanding
shall--
            (1) establish an administrative procedure for processing
        geothermal lease applications, including lines of authority,
        steps in application processing, and time limits for application
        procession;
            (2) establish a 5-year program for geothermal leasing of
        lands in the National Forest System, and a process for updating
        that program every 5 years; and
            (3) <<NOTE: Effective date.>> establish a program for
        reducing the backlog of geothermal lease application pending on
        January 1, 2005, by 90 percent within the 5-year period
        beginning on the date of enactment of this Act, including, as
        necessary, by issuing leases, rejecting lease applications for
        failure to comply with the provisions of the regulations under
        which they were filed, or determining that an original applicant
        (or the applicant's assigns, heirs, or estate) is no longer
        interested in pursuing the lease application.

    (c) Data Retrieval System.--The memorandum of understanding shall
establish a joint data retrieval system that is capable of tracking
lease and permit applications and providing to the applicant information
as to their status within the Departments of the Interior and
Agriculture, including an estimate of the time required for
administrative action.

SEC. 226. <<NOTE: Deadline. 42 USC 15872.>> ASSESSMENT OF GEOTHERMAL
            ENERGY POTENTIAL.

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

[[Page 119 STAT. 666]]

SEC. 227. COOPERATIVE OR UNIT PLANS.

    Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 1017) is
amended to read as follows:

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

    ``(a) Adoption of Units by Lessees.--
            ``(1) In general.--For the purpose of more properly
        conserving the natural resources of any geothermal reservoir,
        field, or like area, or any part thereof (whether or not any
        part of the geothermal reservoir, field, or like area, is
        subject to any cooperative plan of development or operation
        (referred to in this section as a `unit agreement')), lessees
        thereof and their representatives may unite with each other, or
        jointly or separately with others, in collectively adopting and
        operating under a unit agreement for the reservoir, field, or
        like area, or any part thereof, including direct use resources,
        if determined and certified by the Secretary to be necessary or
        advisable in the public interest.
            ``(2) Majority interest of single leases.--A majority
        interest of owners of any single lease shall have the authority
        to commit the lease to a unit agreement.
            ``(3) Initiative of secretary.--The Secretary may also
        initiate the formation of a unit agreement, or require an
        existing Federal lease to commit to a unit agreement, if in the
        public interest.
            ``(4) Modification of lease requirements by secretary.--
                    ``(A) In general.--The Secretary may, in the
                discretion of the Secretary and with the consent of the
                holders of leases involved, establish, alter, change, or
                revoke rates of operations (including drilling,
                operations, production, and other requirements) of the
                leases and make conditions with respect to the leases,
                with the consent of the lessees, in connection with the
                creation and operation of any such unit agreement as the
                Secretary may consider necessary or advisable to secure
                the protection of the public interest.
                    ``(B) Unlike terms or rates.--Leases with unlike
                lease terms or royalty rates shall not be required to be
                modified to be in the same unit.

    ``(b) Requirement of Plans Under New Leases.--The Secretary may--
            ``(1) provide that geothermal leases issued under this Act
        shall contain a provision requiring the lessee to operate under
        a unit agreement; and
            ``(2) prescribe the unit agreement under which the lessee
        shall operate, which shall adequately protect the rights of all
        parties in interest, including the United States.

    ``(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any unit agreement
authorized by this section that applies to land owned by the United
States contain a provision under which authority is vested in the
Secretary, or any person, committee, or State or Federal officer or
agency as may be designated in the unit agreement to alter or modify,
from time to time, the rate of prospecting and development and the
quantity and rate of production under the unit agreement.

[[Page 119 STAT. 667]]

    ``(d) Exclusion From Determination of Holding or Control.--Any land
that is subject to a unit agreement approved or prescribed by the
Secretary under this section shall not be considered in determining
holdings or control under section 7.
    ``(e) Pooling of Certain Land.--If separate tracts of land cannot be
independently developed and operated to use geothermal resources
pursuant to any section of this Act--
            ``(1) the land, or a portion of the land, may be pooled with
        other land, whether or not owned by the United States, for
        purposes of development and operation under a communitization
        agreement providing for an apportionment of production or
        royalties among the separate tracts of land comprising the
        production unit, if the pooling is determined by the Secretary
        to be in the public interest; and
            ``(2) operation or production pursuant to the
        communitization agreement shall be treated as operation or
        production with respect to each tract of land that is subject to
        the communitization agreement.

    ``(f) Unit Agreement Review.--
            ``(1) In general.--Not <<NOTE: Deadlines.>> later than 5
        years after the date of approval of any unit agreement and at
        least every 5 years thereafter, the Secretary shall--
                    ``(A) review each unit agreement; and
                    ``(B) after notice and opportunity for comment,
                eliminate from inclusion in the unit agreement any land
                that the Secretary determines is not reasonably
                necessary for unit operations under the unit agreement.
            ``(2) Basis for elimination.--The elimination shall--
                    ``(A) be based on scientific evidence; and
                    ``(B) occur only if the elimination is determined by
                the Secretary to be for the purpose of conserving and
                properly managing the geothermal resource.
            ``(3) Extension.--Any land eliminated under this subsection
        shall be eligible for an extension under section 6(g) if the
        land meets the requirements for the extension.

    ``(g) Drilling or Development Contracts.--
            ``(1) In general.--The Secretary may, on such conditions as
        the Secretary may prescribe, approve drilling or development
        contracts made by one or more lessees of geothermal leases, with
        one or more persons, associations, or corporations if, in the
        discretion of the Secretary, the conservation of natural
        resources or the public convenience or necessity may require or
        the interests of the United States may be best served by the
        approval.
            ``(2) Holdings or control.--Each lease operated under an
        approved drilling or development contract, and interest under
        the contract, shall be excepted in determining holdings or
        control under section 7.

    ``(h) Coordination With State Governments.--The Secretary shall
coordinate unitization and pooling activities with appropriate State
agencies.''.

SEC. 228. ROYALTY ON BYPRODUCTS.

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

[[Page 119 STAT. 668]]

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

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

    Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is
amended in the <<NOTE: 30 USC 1007.>> second sentence by striking
``period, and in no event'' and all that follows through the end of the
sentence and inserting ``period''.

SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as
amended by sections 223 and 224) is further amended--
            (1) in subsection (a)(2) by inserting ``and'' after the
        semicolon at the end;
            (2) in subsection (a)(3) by striking ``; and'' and inserting
        a period;
            (3) by striking paragraph (4) of subsection (a); and
            (4) by adding at the end the following:

    ``(e) Crediting of Rental Toward Royalty.--Any annual rental under
this section that is paid with respect to a lease before the first day
of the year for which the annual rental is owed shall be credited to the
amount of royalty that is required to be paid under the lease for that
year.''.

SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

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

``SEC. 6. <<NOTE: Regulations.>> LEASE TERM AND WORK COMMITMENT
            REQUIREMENTS.

    ``(a) In General.--
            ``(1) Primary term.--A geothermal lease shall be for a
        primary term of 10 years.
            ``(2) Initial extension.--The Secretary shall extend the
        primary term of a geothermal lease for 5 years if, for each year
        after the 10th year of the lease--
                    ``(A) the Secretary determined under subsection (b)
                that the lessee satisfied the work commitment
                requirements that applied to the lease for that year; or
                    ``(B) the lessee paid in annual payments accordance
                with subsection (c).
            ``(3) Additional extension.--The Secretary shall extend the
        primary term of a geothermal lease (after an initial extension
        under paragraph (2)) for an additional 5 years if, for each year
        of the initial extension under paragraph (2), the Secretary
        determined under subsection (b) that the lessee satisfied the
        minimum work requirements that applied to the lease for that
        year.

[[Page 119 STAT. 669]]

    ``(b) Requirement to Satisfy Annual Minimum Work Requirement.--
            ``(1) In general.--The lessee for a geothermal lease shall,
        for each year after the 10th year of the lease, satisfy minimum
        work requirements prescribed by the Secretary that apply to the
        lease for that year.
            ``(2) Prescription of minimum work requirements.--The
        Secretary shall issue regulations prescribing minimum work
        requirements for geothermal leases, that--
                    ``(A) establish a geothermal potential; and
                    ``(B) if a geothermal potential has been
                established, confirm the existence of producible
                geothermal resources.

    ``(c) Payments in Lieu of Minimum Work Requirements.--In lieu of the
minimum work requirements set forth in subsection (b)(2), the Secretary
shall by regulation establish minimum annual payments which may be made
by the lessee for a limited number of years that the Secretary
determines will not impair achieving diligent development of the
geothermal resource, but in no event shall the number of years exceed
the duration of the extension period provided in subsection (a).
    ``(d) Transition Rules for Leases Issued Prior to Enactment of