DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY TECHNOLOGIES.

SEC. 1202. DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY TECHNOLOGIES. (a) Demonstration and Commercial Application Projects.— Section 6 of the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 12005) is amended to read as follows: “SEC. 6. DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS. “(a) Purpose.— The purpose of this section is to direct the Secretary to further the commercialization of renewable energy and energy efficiency technologies through a five-year program. “(b) Demonstration and Commercial Application Projects.— “(1) Establishment.— (A) The Secretary shall solicit proposals for demonstration and commercial application projects for renewable energy and energy efficiency technologies pursuant to subsection (c). Such projects may include projects for— “(i) the production and sale of electricity, thermal energy, or other forms of energy using a renewable energy technology; “(ii) increasing the efficiency of energy use; and “(iii) improvements in, or expansion of, facilities for the manufacture of renewable energy or energy efficiency technologies. “(B) Requirements.— Each project selected under this section shall include at least one for-profit business. Activities supported under this section shall be performed in the United States. Each project under this section shall require the manufacture and reproduction substantially within the United States for commercial sale of any invention or product that may result from the project. “(2) Forms of financial assistance.— (A) In supporting projects selected under subsection (c), the Secretary may choose 106 STAT. 2957from among the forms of agreements described in section 3001 of the Energy Policy Act of 1992. “(B) In supporting projects selected under subsection (c), the Secretary may also enter into agreements with private lenders to pay a portion of the interest on loans made for such projects. “(3) Cost sharing.— Cost sharing for projects under this section shall be conducted according to the procedures described in section 3002 (b) and (c) of the Energy Policy Act of 1992. “(4) Advisory committee.— (A) The Secretary shall establish an Advisory Committee on Demonstration and Commercial Application of Renewable Energy and Energy Efficiency Technologies (in this Act referred to as the ‘Advisory Committee’) to advise the Secretary on the development of the solicitation and evaluation criteria for projects under this section, and on otherwise carrying out his responsibilities under this section. The Secretary shall appoint members to the Advisory Committee, including at least one member representing— “(i) the Secretary of Commerce; “(ii) the National Laboratories of the Department of Energy; “(iii) the Solar Energy Research Institute; “(iv) the Electric Power Research Institute; “(v) the Gas Research Institute; “(vi) the National Institute of Building Sciences; “(vii) the National Institute of Standards and Technology; “(viii) associations of firms in the major renewable energy manufacturing industries; and “(ix) associations of firms in the major energy efficiency manufacturing industries. Nothing in this subparagraph shall be construed to require the Secretary to reestablish the Advisory Committee in place under this subsection as of the date of enactment of the Energy Policy Act of 1992, or to perform again any duties performed by such advisory committee before such date of enactment. “(B) Not later than 18 months after the date of the enactment of the Energy Policy Act of 1992, the Advisory Committee shall provide the Secretary with a report assessing the implementation of the program under this section, including specific recommendations for improvements or changes to the program and solicitation process. The Secretary shall transmit such report and, if any, the Secretary’s recommendations to the Congress. “(c) Selection of Projects.— “(1) Solicitation.— (A) Not later than 9 months after the date of the enactment of the Energy Policy Act of 1992, the Secretary shall solicit proposals for projects under this section. The Secretary may make additional solicitations for proposals if the Secretary determines that such solicitations are necessary to carry out this section. “(B) A solicitation for proposals under this paragraph shall establish a closing date for receipt of proposals. The Secretary may, if necessary, extend the closing date for receipt of proposals for a period not to exceed 90 days. “(C) Each solicitation under this paragraph shall include a description of the criteria, developed by the Secretary, accord-106 STAT. 2958ing to which proposals will be evaluated. In developing such criteria, the Secretary shall consider— “(i) the need for Federal involvement to commercialize the technology or speed commercialization of the technology; “(ii) the potential for the technology to have significant market penetration; “(iii) the potential energy efficiency gains or energy supply contributions of the technology; “(iv) potential environmental improvements associated with the technology; “(v) the export potential of the technology; “(vi) the likelihood that the proposal is technically sufficient to achieve the objective of the solicitation; “(vii) the degree to which non-Federal financial participation is involved in the proposal; “(viii) the business and financial history of the proposer or proposers; and “(ix) any other factor the Secretary considers appropriate. “(2) Project technologies.— Projects under this section may include the following technologies: “(A) Conversion of cellulosic biomass to liquid fuels. “(B) Ethanol and ethanol byproduct processes. “(C) Direct combustion or gasification of biomass. “(D) Biofuels energy systems. “(E) Photovoltaics, including utility scale and remote applications. “(F) Solar thermal, including solar water heating. “(G) Wind energy. “(H) High temperature and low temperature geothermal energy. “(I) Fuel cells, including transportation and stationary applications. “(J) Nondefense high-temperature superconducting electricity technology. “(K) Source reduction technology. “(L) Factory-made housing. “(M) Advanced district cooling. “(3) Project selection.— The Secretary shall, within 120 days after the closing date established under paragraph (1)(B), select proposals to receive financial assistance under this section. In selecting proposals under this paragraph, the Secretary shall— “(A) consider each proposal’s ability to meet the criteria developed pursuant to paragraph (1 )(C); and “(B) attempt to achieve technological and geographic diversity. “(d) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary for carrying out this section $50,000,000 for fiscal year 1994. (b) National Goals and Multiyear Funding for Alcohol From Biomass.— Section 4(a) of the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 12003(a)) is amended— (1) by redesignating paragraph (4) as paragraph (5); 106 STAT. 2959 (2) by inserting after paragraph (3) the following new paragraph: “(4) Alcohol from biomass.— (A) In general, the goal of the Alcohol From Biomass Program shall be to advance research and development to a point where alcohol from biomass technology is cost-competitive with conventional hydrocarbon transportation fuels, and to promote the integration of this technology into the transportation fuel sector of the economy. “(B) (i) Specific goals for producing ethanol from biomass shall be to— “(I) reduce the cost of alcohol to 70 cents per gallon; “(II) improve the overall biomass carbohydrate conversion efficiency to 91 percent; “(III) reduce the capital cost component of the cost of alcohol to 23 cents per gallon; and “(IV) reduce the operating and maintenance component of the cost of alcohol to 47 cents per gallon. “(ii) Specific goals for producing methanol from biomass shall be to— “(I) reduce the cost of alcohol to 47 cents per gallon; and “(II) reduce the capital component of the cost of alcohol to 16 cents per gallon.”; and (3) in paragraph (5), as so redesignated by paragraph (1) of this subsection, by inserting “Biodiesel Energy Systems,” after “Biofuels Energy Systems,”. (c) National Renewable Energy and Energy Efficiency Management Plan.— Section 9(b) of the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 12008(b)) is amended— (1) in paragraph (1) by inserting “three-year” before “management plan”; and (2) by striking paragraph (5) and inserting in lieu thereof the following new paragraphs: “(5) In addition, the Plan shall— “(A) contain a detailed assessment of program needs, objectives, and priorities for each of the programs authorized under section 6 of this Act; “(B) use a uniform prioritization methodology to facilitate cost-benefit analyses of proposals in various program areas; “(C) establish milestones for setting forth specific technology transfer activities under each program area; “(D) include annual and five-year cost estimates for individual programs under this Act; and “(E) identify program areas for which funding levels have been changed from the previous year’s Plan. “(6) Within one year after the date of the enactment of the Energy Policy Act of 1992, the Secretary shall submit a revised management plan under this section to Congress. Thereafter, the Secretary shall submit a management plan every three years at the time of submittal of the President’s annual budget submission to the Congress.”. (d) Conforming Amendments.— The Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 U.S.C 12001 et seq.) is further amended— (1) in section 2(b)— 106 STAT. 2960 (A) by striking “authority contained in” and all that follows through “applicable to the Secretary” and inserting in lieu thereof “section 3001 of the Energy Policy Act of 1992”; and (B) by striking “and demonstration” and inserting in lieu thereof “demonstration, and commercial application”; (2) in section 2(b)(4)— (A) by striking “research and development”; and (B) by striking “joint ventures” and inserting in lieu thereof “demonstration and commercial application projects”; (3) in section 2(c), by striking “the authority contained in” and all that follows and inserting in lieu thereof “section 3001 of the Energy Policy Act of 1992, is authorized and directed to— “(1) pursue a program of research, development, demonstration, and commercial application with the private sector, to achieve the purpose of this Act, including the goals established under section 4; and “(2) undertake demonstration and commercial application projects as provided in section 6.”; (4) in section 3— (A) by striking paragraph (2); (B) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; (C) in paragraph (4), as so redesignated by subparagraph (B) of this paragraph— (i) by striking “joint venture” and inserting in lieu thereof “demonstration and commercial application project”; (ii) by striking “venture” and inserting in lieu thereof “demonstration and commercial application project”; and (iii) by striking “and” at the end thereof; and (D) by inserting after paragraph (4), as so redesignated by subparagraph (B) of this paragraph, the following new paragraph: “(5) the term ‘source reduction’ means any practice which— “(A) reduces the amount of any hazardous substance, pollutant, or contaminant entering any waste stream or otherwise released into the environment, including fugitive emissions, prior to recycling, treatment, or disposal; and “(B) reduces the hazards to the public health and the environment associated with the release of such substances, pollutants, or contaminants, including equipment or technology modifications, process or procedure modifications, reformulation or redesign of products, substitution of raw materials, and improvements in housekeeping, maintenance, training, and inventory control, but not including any practice which alters the physical, chemical, or biological characteristics or the volume of a hazardous substance, pollutant, or contaminant through a process or activity which itself is not integral to and necessary for the production of a product or the providing of a service;”; and (5) in section 9(a), by striking “, projects, and joint ventures” and inserting in lieu thereof “and projects”.