The Library of Congress  >  THOMAS Home  >  Committee Reports  >  Search Results

49-006

109TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

2d Session

109-611

--ENERGY RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION ACT OF 2006

JULY 28, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. BOEHLERT, from the Committee on Science, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 5656]

[Including cost estimate of the Congressional Budget Office]

CONTENTS Page
I. Amendment 2
II. Purpose of the Bill 13
III. Background and Need for the Legislation 13
IV. Summary of Hearings 14
V. Committee Actions 16
VI. Summary of Major Provisions of the Bill, as Reported 18
VII. Section-by-Section Analysis (by Title and Section), as Reported 18
VIII. Committee Views 22
IX. Cost Estimate 26
X. Congressional Budget Office Cost Estimate 27
XI. Compliance with Public Law 104-4 (Unfunded Mandates) 29
XII. Committee Oversight Findings and Recommendations 29
XIII. Statement on General Performance Goals and Objectives 29
XIV. Constitutional Authority Statement 29
XV. Federal Advisory Committee Statement 29
XVI. Congressional Accountability Act 29
XVII. Statement on Preemption of State, Local, or Tribal Law 30
XVIII. Changes in Existing Law Made by the Bill, as Reported 30
XIX. Committee Recommendations 35
XX. Committee Correspondence 36
XXI. Additional Views 38
XXII. Proceedings of Full Committee Markup 43

I. AMENDMENT

SECTION 1. SHORT TITLE.

SEC. 2. DEFINITIONS.

SEC. 3. FUTUREGEN.

SEC. 4. ADVANCED NUCLEAR FUEL CYCLE TECHNOLOGIES RESEARCH, DEVELOPMENT, AND DEMONSTRATION PLAN.

SEC. 5. ADVANCED BIOFUEL TECHNOLOGIES.

SEC. 6. ADVANCED HYDROGEN STORAGE TECHNOLOGIES.

SEC. 7. ADVANCED SOLAR PHOTOVOLTAIC TECHNOLOGIES.

SEC. 8. ADVANCED WIND ENERGY TECHNOLOGIES.

SEC. 9. CONTINUING PROGRAMS.

SEC. 10. PLUG-IN HYBRID ELECTRIC VEHICLE TECHNOLOGY PROGRAM.

SEC. 11. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

SEC. 12. ENERGY EFFICIENT BUILDING GRANT PROGRAM.

SEC. 13. ENERGY TECHNOLOGY TRANSFER.

`SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.

SEC. 14. GREEN ENERGY EDUCATION.

SEC. 15. ARPA-E STUDY.

SEC. 16. COAL METHANATION.

SEC. 17. ALTERNATIVE BIOBASED FUELS AND ULTRA LOW SULFUR DIESEL.

SEC. 18. BIOENERGY.

II. PURPOSE OF THE BILL

The purpose of H.R. 5656, the Energy Research, Development, Demonstration, and Commercial Application Act of 2006, is to authorize energy research, development, and demonstration (RD&D) and commercial application programs, projects, and activities at the Department of Energy.

III. BACKGROUND AND NEED FOR THE LEGISLATION

Affordable energy is essential to the Nation's continued prosperity. Volatile world oil markets, along with soaring natural gas and electricity prices, have replaced the relatively low energy prices enjoyed over most of the two decades before the turn of the century. Recent events have illustrated the important connections between energy policy and national security policy. In addition, there are increasing concerns about the environmental impact of energy use. Consequently, energy is once again on the front burner of the Nation's agenda.

During the first session of the 109th Congress, the Committee on Science reported energy research, development, and demonstration (RD&D) authorizing legislation to the House that was enacted as part of the Energy Policy Act of 2005 (EPACT) (P.L. 109-58). Since enactment of EPACT, world events and changes in the global energy markets have heightened the need to develop alternatives to petroleum.

In February 2006, President Bush announced the Advanced Energy Initiative (AEI) that would accelerate RD&D on non-petroleum energy technologies, particularly clean coal technologies, advanced nuclear energy technologies, renewable energy technologies, and energy efficiency technologies. This legislation authorizes specific elements of the AEI and builds upon the President's proposal to accelerate the development of new energy technologies. For example, section 10 ramps up the RD&D on plug-in hybrid vehicle technology, a technology that has the potential to reduce oil demand by millions of barrels per day. Similarly, section 11 extends the reach of the President's Solar America Initiative (a portion of AEI) to demonstrate advanced solar photovoltaic technologies.

The legislation addresses other opportunities for oil savings, such as energy consumption in buildings. According to Department of Energy (DOE) 2003 statistics, buildings consume more energy than any other sector of the economy, including industrial processes and transportation. Buildings consume 39 percent of primary energy in the United States and 70 percent of electricity. Innovations in energy-efficient building technologies, materials, techniques and systems combined with advances in photovoltaic and other distributed clean energy technologies have the potential to dramatically transform the pattern of energy consumption associated with buildings. These technologies--coupled with a whole building approach that optimizes the interactions among building systems and components--enable buildings to use considerably less energy, while also helping to meet national goals for sustainable development, environmental protection, and energy security.

IV. SUMMARY OF HEARINGS

During the 109th Congress, the House Committee on Science held the following hearings relevant to H.R. 5656:

On February 15, 2006, the Committee on Science held a hearing on `An Overview of the Federal R&D Budget for Fiscal Year 2007.' Appearing as witnesses were (1) Dr. John H. Marburger III, Director, Office of Science and Technology Policy; (2) Dr. Samuel W. Bodman, Secretary, Department of Energy (DOE); (3) Dr. David A. Sampson, Deputy Secretary, Department of Commerce; (4) Dr. Arden Bement, Director, National Science Foundation; and (5) Dr. Charles E. McQueary, Under Secretary for Science and Technology, Department of Homeland Security.

On March 9, 2006, the Committee on Science held a hearing on `Should Congress Establish `ARPA-E,' The Advanced Research Projects Agency--Energy?' Appearing as witnesses were (1) Dr. Steven Chu, Director, Lawrence Berkeley National Laboratory; (2) Dr. David Mowery, Hasler Professor of New Enterprise Development, Haas School of Business, University of California at Berkeley; (3) Dr. Frank L. Fernandez, President, F.L. Fernandez, Inc; (4) Dr. Catherine Cotell, Vice President for Strategy, University and Early Stage Investment, In-Q-Tel; and (5) Ms. Melanie Kenderdine, Vice President of Washington Operations, Gas Technology Institute.

During the 109th Congress, the Subcommittee on Energy of the House Committee on Science held the following hearings relevant to H.R. 5656:

On April 27, 2005, the Subcommittee on Energy held a hearing on `Priorities in the Department of Energy Budget for Fiscal Year 2006.' Appearing as witnesses were (1) Dr. Raymond Orbach, Director of the Office of Science, DOE; (2) Mr. Douglas Faulkner, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy, DOE; (3) Mr. Mark Maddox, Principal Deputy Assistant Secretary for Fossil Energy, DOE; (4) Mr. Robert Shane Johnson, Deputy Director for Technology in the Office of Nuclear Energy, Science and Technology, DOE; and (5) Mr. Kevin Kolevar, Director Office of Electricity Delivery and Energy Reliability, DOE.

On June 16, 2005, the Subcommittee on Energy held a hearing on `Nuclear Fuel Reprocessing.' Appearing as witnesses were (1) Mr. Robert Shane Johnson, Acting Director of the Office of Nuclear Energy, Science and Technology, and Deputy Director for Technology, DOE; (2) Dr. Phillip J. Finck, Deputy Associate Laboratory Director, Applied Science and Technology and National Security, Argonne National Laboratory; (3) Dr. Roger Hagengruber, Director of the Office for Policy, Security and Technology and Director of the Institute for Public Policy, University of New Mexico; and (4) Mr. Matthew Bunn, Senior Research Associate, John F. Kennedy School of Government, Harvard University.

On July 12, 2005, the Subcommittee on Energy held a hearing on `Economic Aspects of Nuclear Fuel Reprocessing.' Appearing as witnesses were (1) Dr. Richard K. Lester, Director of the Industrial Performance Center and Professor of Nuclear Science and Engineering, Massachusetts Institute of Technology; (2) Dr. Donald W. Jones, Vice President of Marketing and Senior Economist, RCF Economic and Financial Consulting, Inc; (3) Dr. Steve Fetter, Dean of the School of Public Policy, University of Maryland; and (4) Mr. Marvin Fertel, Senior Vice President and Chief Nuclear Officer, Nuclear Energy Institute.

On July 20, 2005, the Subcommittees on Energy and Research held a joint hearing on `Fueling the Future: On The Road To The Hydrogen Economy.' Appearing as witnesses were (1) Mr. Douglas Faulkner, Acting Assistant Secretary for Energy Efficiency and Renewable Energy, DOE; (2) Dr. David Bodde, Director of Innovation and Public Policy, International Center for Automotive Research, Clemson University; (3) Mr. Mark Chernoby, Vice President of Advanced Vehicle Engineering, DaimlerChrysler Corporation; (4) Dr. George Crabtree, Director of the Materials Science Division, Argonne National Laboratory; and (5) Dr. John Heywood, Director of the Sloan Automotive Laboratory, Massachusetts Institute of Technology.

On November 2, 2005, the Subcommittee on Energy held a hearing on `Winning Teams and Innovative Technologies from the 2005 Solar Decathlon'. Appearing as witnesses were (1) Mr. Richard F. Moorer, Deputy Assistant Secretary for Technology Development, Office of Energy Efficiency and Renewable Energy, DOE; (2) Mr. David G. Schieren, Graduate Student and Energy Team Leader, Energy Management, New York Institute of Technology; (3) Mr. Jeffrey R. Lyng, Graduate Student and Team Project Manager, Civil, Environmental, and Architectural Engineering, University of Colorado; (4) Mr. Jonathan R. Knowles, Professor and Team Advisor, Department of Architecture, Rhode Island School of Design; and (5) Mr. Robert P. Schubert, Professor and Team Advisor, Department of Architecture, Virginia Polytechnic Institute.

On April 6, 2006, the Subcommittee on Energy held a hearing on `Assessing the Goals, Schedule and Costs of the Global Nuclear Energy Partnership.' Appearing as witnesses were (1) Mr. Shane Johnson, Deputy Director for Technology, Office of Nuclear Energy Science and Technology, DOE; (2) Dr. Neil Todreas, Kepco Professor of Nuclear Engineering and Professor of Mechanical Engineering, Massachusetts Institute of Technology; (3) Dr. Richard Garwin, IBM Fellow Emeritus, Thomas J. Watson Research Center, Yorktown Heights, NY; and (4) Mr. David Modeen, Vice President and Chief Nuclear Officer, Electric Power Research Institute.

On May 17, 2006, the Subcommittee on Energy held a hearing on `The Plug-in Hybrid Electric Vehicle Act of 2006 (Discussion Draft).' Appearing as witnesses were (1) Mr. Roger Duncan, Deputy General Manager, Austin Energy; (2) Dr. Mark Duvall, Technology Development Manager for Electric Transportation & Specialty Vehicles, Science & Technology Division, Electric Power Research Institute; (3) Dr. Andrew Frank, Professor of Mechanical and Aeronautical Engineering, and the Director of the Hybrid Electric Vehicle Research Center, University of California, Davis; (4) Mr. John German, Manager of Environmental and Energy Analyses, American Honda Motor Company; (5) Dr. Cliff Ricketts, Professor of Agricultural Education, School of Agribusiness and Agriscience, Middle Tennessee State University; and (6) Dr. Danilo Santini, Senior Economist, Energy Systems Division, Center for Transportation Research, Argonne National Laboratory.

On June 5, 2006, the Subcommittee on Energy held a hearing on `Assessing Progress in Advanced Technologies for Vehicles and Fuels.' Appearing as witnesses were (1) Dr. James F. Miller, Manager of the Electrochemical Technology Program, Argonne National Laboratory; (2) Mr. Al Weverstad, Executive Director for Mobile Emissions and Fuel Efficiency, General Motors Public Policy Center; (3) Mr. Jerome Hinkle, Vice President of Policy and Government Affairs, National Hydrogen Association; (4) Dr. Daniel Gibbs, President, General Biomass Company; (5) Mr. Deron Lovaas, Vehicles Campaign Director, Natural Resources Defense Council; and (6) Mr. Philip G. Gott, Director for Automotive Custom Solutions, Global Insight.

V. COMMITTEE ACTIONS

On June 21, 2006, Representative Judy Biggert, Chairman of the Subcommittee of Energy, introduced H.R. 5656, the Energy Research, Development, Demonstration, and Commercial Application Act of 2006, a bill to provide for Federal energy research, development, demonstration (RD&D) and commercial application activities, and for other purposes.

The Full Committee on Science met to consider H.R. 5656 on Tuesday, June 27, 2006 and considered the following amendments to the bill:

Mrs. Biggert offered a manager's amendment that made changes to various portions of the bill. The amendment, agreed to by voice vote, contained technical corrections and clarifying language, an amendment offered by Mr. Hall was included in the manager's amendment by unanimous consent, as well as the following substantive provisions:

FutureGen--Revises this provision on the demonstration of a near zero-emissions coal-fired power plant by removing authorization of appropriations for funds already authorized in EPACT, while adding language on data protection and contributions from public and private sources.

Advanced Nuclear Fuel Cycle--Focuses the provision on the analysis and plan for the advanced nuclear fuel cycle R&D program, and a report to Congress. It leaves intact the prohibition on certain large-scale demonstrations, while adding new language requiring cost analysis for the demonstration program, including for decommissioning and decontamination costs.

Battery Technologies--Removes duplicative advanced battery technology language.

Biofuel Technologies--Expands R&D on biofuels technology to include non-liquid motor fuels such as biobased methane, and requires a minimum 10 percent allocation for university research.

Plug-in Hybrid Vehicle Technologies--Broadens scope of R&D provision to include technologies for electric drive transportation and broadens list of eligible applicants and partners for the demonstration program, including partners such as minority-serving institutions and other universities.

Photovoltaic Technology Demonstration--Encourages minority-serving institutions to apply for grants under this program.

Energy Efficient Building Grant Program--Provides a preference for applicants that can maximize the leverage of private investment in energy efficiency and instructs the Department of Energy to give due consideration to awards for energy efficient buildings that would be likely to serve low- and moderate-income populations.

Energy Extension--Merges the energy extension language in Section 13 with an existing provision from EPACT--The Advanced Energy Efficiency Technology Transfer Centers in Section 917--to avoid duplication and maximize program effectiveness.

The following five amendments were considered en bloc and agreed to by a voice vote:

(1) Mr. Gordon offered an amendment to authorize RD&D and commercial application on materials to make bio-based transportation fuels more compatible with existing fuel storage and delivery equipment and a program of RD&D on methods to test sulfur content in fuel.

(2) Ms. Matsui offered an amendment to specify that the Secretary of Energy shall continue to carry out RD&D and commercial application on geothermal energy, hydropower, co-generation, and distributed energy production authorized in EPACT.

(3) Ms. Woolsey offered an amendment to require a higher energy efficiency standard for energy efficient buildings.

(4) Ms. Jackson-Lee offered an amendment to specify that, in awarding grants under the Green Energy Education provision, the Director of the National Science Foundation shall give due consideration to applications from Historically Black Colleges and Universities and other minority-serving institutions.

(5) Mr. Green offered an amendment to amend Section 932 of EPACT to include production of certain bio-products from biomass as an authorized activity of the bioenergy demonstration program authorized in that Act.

Mr. Baird offered an amendment to specify that the definition of an energy efficient building under Section 12 of the bill should require the use of heating, ventilation, and air conditioning systems that meet or exceed Energy Star efficiency standards. The amendment was agreed to by a voice vote.

Mr. Gordon offered an amendment to authorize a revolving loan fund for the purposes of improving the energy efficiency of federal buildings and for demonstration and commercial application of innovative energy technologies in federal buildings. The amendment was subsequently withdrawn following a colloquy between Mr. Gordon and Chairman Boehlert.

Mr. Gordon offered an amendment to establish an Advanced Research Projects Agency--Energy (ARPA-E) at DOE. The amendment was defeated by a voice vote.

Mr. Costello offered an amendment as substitute for Section 3 of the bill to give the Secretary of Energy authority to indemnify private sector participants in the FutureGen project and to reimburse private sector participants in the event of project termination. Mr. Costello asked for unanimous consent to withdraw the amendment and the amendment was withdrawn.

Mr. Costello offered an amendment to authorize RD&D and commercial application on coal gasification for ethanol production. The amendment was defeated by a voice vote.

With a quorum present, Mr. Gordon moved that the Committee favorably report the bill, H.R. 5656, as amended, to the House with the recommendation that the bill as amended do pass; that the staff be instructed to prepare the legislative report and make necessary technical and conforming changes; and that the Chairman take all necessary steps to bring the bill before the House for consideration. The motion was agreed to by voice vote.

VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL AS REPORTED

Authorizes a project for research, development, and demonstration (RD&D) on advanced clean coal technology, including carbon capture and geological sequestration; requires a comprehensive analysis, plan and report to Congress for DOE's program of RD&D on advanced nuclear fuel cycle technologies; authorizes RD&D and commercial application programs on methane produced from coal, advanced biofuels technologies (including technologies for storage and delivery of biofuels, and biodegradable plastics from biomass to help advance bioenergy from cellulosic ethanol), advanced hydrogen storage technologies; advanced photovoltaic technologies; advanced wind energy technologies; and other renewable energy and energy efficiency technologies.

Authorizes a program of RD&D on technologies for plug-in hybrid electric vehicles; authorizes a program of grants to States for the demonstration of advanced photovoltaic solar energy technologies; authorizes a pilot program of grants for the

demonstration of advanced energy efficiency technologies for buildings; authorizes a program of grants for advanced energy technology transfer centers to increase the efficiency of energy use; authorizes DOE and the National Science Foundation to collaborate on the solicitation and funding of grants related to clean energy and high-performance buildings.

Requires a National Academy of Sciences (NAS) study to elaborate on a 2005 NAS recommendation to establish an Advanced Research Projects Agency-Energy.

VII. SECTION-BY-SECTION ANALYSIS OF THE BILL AS REPORTED

Sec. 1. Short title

`The Energy Research, Development, Demonstration, and Commercial Application Act of 2006'

Sec. 2. Definitions

Defines terms used in the text.

Sec. 3. FutureGen

Requires the Secretary of Energy to carry out a project to demonstrate the feasibility of the commercial application of advanced clean coal technology, including carbon capture and geological sequestration, for electricity generation.

Requires the Secretary to design the project to meet specific emissions goals and to demonstrate electricity production using advanced clean coal technology with carbon capture and geological sequestration at a cost not greater than 10 percent higher than current commercial integrated coal gasification combined cycle electric generating plants. Allows the Secretary to protect information associated with the project and allows the Secretary to accept contributions from public and private sources to offset the share of Federal cost.

Sec. 4. Advanced fuel cycle technologies research, development, and demonstration plan

Requires the Secretary to develop a comprehensive modeling and simulation capability to analyze advanced nuclear fuel cycle systems, to use this capability to analyze possible advanced nuclear fuel cycle systems, and to use this analysis to develop a plan for advanced nuclear power technology RD&D activities.

Prohibits the Secretary from moving forward on some large-scale advanced nuclear fuel cycle technology demonstration projects until the advanced nuclear power technology RD&D plan is reviewed by the National Academy of Sciences (NAS), revised by the Secretary in light of the NAS findings and recommendations, and delivered to Congress.

Sec. 5. Advanced biofuel technologies

Requires the Secretary to carry out a program of RD&D and commercial application on motor and other fuels from biomass. Not less than 10 percent of funds appropriated to this program shall be competitively awarded to colleges and universities.

Authorizes appropriations to the Secretary to carry out this section from sums already authorized to be appropriated for bioenergy programs in EPACT.

Sec. 6. Advanced hydrogen storage technologies

Requires the Secretary to carry out a program of RD&D and commercial application on technologies to enable practical onboard storage of hydrogen for use as a fuel for light-duty motor vehicles.

Sec. 7. Advanced solar photovoltaic technologies

Requires the Secretary to carry out a program of RD&D and commercial application on advanced solar photovoltaic technologies.

Authorizes appropriations of $648 million over four years to the Secretary to carry out this section.

Sec. 8. Advanced wind energy technologies

Requires the Secretary to carry out a program of RD&D and commercial application on advanced wind energy technologies.

Authorizes appropriations of $204 million over four years to the Secretary to carry out this section.

Sec. 9. Continuing programs

Requires the Secretary to continue to carry out RD&D and commercial application on geothermal energy, hydropower, co-generation, and distributed energy production, as authorized in EPACT.

Sec. 10. Plug-in hybrid electric vehicle technology program

Short Title: this section may be cited as the `Plug-In Hybrid Electric Vehicle Act of 2006'

Defines terms used in this section.

Requires the Secretary to carry out a program of RD&D and commercial application on technologies needed to enable plug-in hybrid electric vehicles and electric drive transportation.

Establishes a competitive grant pilot program to provide up to 25 grants annually for demonstration of plug-in hybrid electric vehicles to State governments, local governments and public entities, metropolitan transportation authorities, or combinations thereof to carry out a project or projects for demonstration of plug-in hybrid electric vehicles.

Authorizes appropriations of $1.5 billion over five years to the Secretary to carry out this section.

Sec. 11. Photovoltaic demonstration program

Short Title: this section may be cited as the `Solar Utilization Now Demonstration Act of 2006' or the `SUN Act of 2006'.

Requires the Secretary to establish a grant program to States for the demonstration of advanced photovoltaic solar energy technology. All States that meet the requirements of the program are eligible to receive funding. States are required to award funds in a competitive allocation to eligible recipients and to require a contribution of at least 60 percent per award from non-Federal sources, with at least 10 percent provided by States. No award may be more than $1 million, and unexpended funds will be returned to the Treasury after three years. Requires the Secretary to report to Congress on the costs and results of this program after five years.

Authorizes appropriations of $800 million over five years to the Secretary to carry out this section.

Sec. 12. Energy efficient building grant program

Establishes an energy efficient building pilot program to award grants to business and organizations for new construction of energy efficient buildings, or major renovations of buildings that will result in energy efficient buildings, and to demonstrate innovative energy efficiency technologies. Grants may be for up to 50 percent of design and energy modeling costs, not to exceed $50,000 per building. Fifty percent of the grant is available to the recipient upon selection through a competitive process, and the remaining 50 percent is available only after independent certification that operational buildings are energy efficient as defined in the bill. Requires the Secretary to report to Congress three years after first grant is awarded.

Authorizes appropriations of $50 million over five years to the Secretary to carry out this section.

Sec. 13. Energy technology transfer

Amends Section 917 of EPACT which requires the Secretary to distribute grants to establish a network of Advanced Energy Efficiency Technology Transfer Centers for the transfer of advanced energy technologies and methods to a wide range of energy end-users, including individuals, businesses and building and industrial professionals. Amendment specifies types of activities that may be funded, minimum criteria and priorities for qualifying applications, duration of funding, and grantee evaluation requirements.

Prohibits use of funds for construction of facilities.

Authorizes appropriation of such sums as may be necessary to the Secretary to carry out this section.

Sec. 14. Green energy education

Authorizes DOE's Office of Science and DOE's applied energy technology programs to contribute funds to the National Science Foundation's (NSF) Integrative Graduate Education and Research Traineeship (IGERT) program in support of projects related to the science and energy missions of the department.

Authorizes DOE high performance building technology programs to contribute to NSF's ongoing curriculum development activities for the purpose of improving undergraduate and graduate interdisciplinary engineering and architecture education related to the design and construction of high performance buildings. Gives priority to applications from schools, departments or programs of engineering that are partnered with schools, departments or programs of design, architecture and city, regional, or urban planning and due consideration to applications from minority-serving institutions.

Sec. 15. ARPA-E study

Requires the Secretary to enter into an arrangement with NAS to conduct a detailed study of, and make further recommendations on, the October 2005 NAS recommendation to establish an Advanced Research Projects Agency--Energy (ARPA-E).

Requires the Secretary, not later than 12 months after the date of enactment of this Act, to transmit a report to Congress containing the NAS study and the Secretary's response to the findings, conclusions, and recommendations of that study.

Sec. 16. Coal methanation

Requires the Secretary to establish a program of RD&D and commercial application on facilities that convert coal into pipeline quality gaseous fuels for direct use or subsequent chemical or physical conversion.

Sec. 17. Alternative biobased fuels and ultra low sulfur diesel

Requires the Secretary to carry out a program of RD&D and commercial application on materials to be added to biobased fuels and ultra low sulfur diesel fuels to make them more compatible with existing fuel storage and delivery infrastructure.

Requires the Secretary to carry out a program of RD&D on methods to test sulfur content in fuels.

Requires the National Institute of Standards and Technology to develop a physical properties database and standard reference materials for alternative fuels.

Sec. 18. Bioenergy

Amends Section 932 of EPACT to require the Secretary to carry out RD&D and commercial application on certain bio-products from biomass.

Authorizes appropriations of $75 million over three years--FY07 to FY09--from within existing authorizations in EPACT.

VIII. COMMITTEE VIEWS

Section 3. FutureGen. The Committee believes that FutureGen, DOE's project to develop and demonstrate technologies for the capture and disposal of carbon dioxide, a greenhouse gas, from a commercial-scale coal-fueled power plant, is a critical element of DOE's Climate Change Technology Program. If successful, technology demonstrated by FutureGen could allow continued use of coal for electricity generation while significantly reducing air pollution and carbon dioxide emissions.

The bill requires the Secretary to choose a project design that will demonstrate that it will be possible for future plants to generate electricity based on the design and lessons learned from this project at a cost, including carbon sequestration capability, that is no greater than 10 percent above standard integrated gasification combined cycle electricity costs. However, it is not the expectation of the Committee that FutureGen, a first-of-a-kind facility, will necessarily be able to produce electricity at this cost.

The intent of the Committee is to support the FutureGen project without disturbing the negotiations currently underway between DOE and private-sector project participants. While the Committee was distressed to learn that DOE apparently circumvented normal competitive procurement procedures in this case by setting partnership criteria that only one organization could meet, this effort may be too important to the nation to require a new solicitation process and impose the associated delay. The Committee does not object to the Secretary selecting a design or site that would maximize the potential for future research projects on site upon completion of the demonstration.

Section 4. Advanced Fuel Cycle Technologies for Nuclear Power. The Committee supports the President's vision for U.S. leadership in developing advanced nuclear power technologies. The Committee is concerned, however, that DOE's proposed RD&D activities for advanced nuclear fuel cycle technologies included under the Global Nuclear Energy Partnership (GNEP) initiative are not sufficiently developed for Congress to act upon. In particular, the Committee is concerned that DOE has selected specific advanced nuclear fuel cycle technologies for large-scale, expensive demonstrations, including fast reactors and fuel fabrication facilities, without conducting the necessary analysis and without consulting a sufficiently wide range of technical experts.

A program of the size and scope that is proposed in DOE's fiscal year 2007 budget request requires rigorous justification of technology choices based on a comprehensive analysis of the entire fuel cycle. For example, DOE appears to have chosen a fast reactor to carry the entire transmutation burden in an advanced fuel cycle. Experts within and outside of DOE have estimated that such a fuel cycle could require one fast reactor to every three or four thermal reactors. The Committee has concerns about the commercial viability of such a reactor fleet. In addition to considering a range of fast reactor designs, the Committee expects DOE to consider the role of advanced thermal reactors that could be capable of carrying some of the transmutation burden at lower cost.

The Committee believes that an open process of broad consultation is essential for a major initiative, such as the nuclear power technology RD&D components of the GNEP initiative, to succeed. A systematic process for seeking input from technical experts, industry, other entities and individuals interested in an expansion of domestic nuclear power would provide confidence to the Committees of jurisdiction in Congress that DOE's proposal for multi-billion dollar capital investments in large-scale engineering demonstration projects has been widely vetted.

For the future, the Committee believes that DOE should develop an ongoing long-range planning and prioritization process for nuclear energy RD&D modeled on planning and prioritization processes used by the Office of Science and other Federal science agencies, for science programs that require large-scale, complex RD&D facilities. Any such planning process should include a periodic review by an independent body, such as the NAS. The Committee suggests that, at an appropriate time after the NAS review required by this legislation, DOE consider entering into an arrangement with the NAS to

conduct a decadal survey, such as those conducted for astronomy and other physical sciences sub-disciplines, of RD&D priorities for nuclear energy.

The Committee does not intend for the prohibition in subsection (d) to limit R&D or conceptual design work on any aspect of nuclear power technology. Nor does the Committee intend to slow or prevent progress on the Uranium Extraction plus (UREX+) demonstration facility, provided that such a demonstration is truly at engineering scale-that is, the minimum size required to predict with confidence all physical processes controlling the performance of a full-scale industrial facility. The Committee understands from a number of experts that an appropriate scale for such a facility is one with the capacity to process approximately 20-25 metric tons of spent nuclear fuel per year.

Section 9. Continuing Programs. It is the intent of the Committee that the programs authorized in EPACT shall continue to be supported by the Secretary. In authorizing programs included in the President's Advanced Energy Initiative (AEI), the Committee did not intend to endorse all program eliminations in the budget request for DOE. The Committee is concerned about the elimination of several renewable energy programs, including geothermal, hydropower, and ocean energy, where significant potential remains for DOE's programs to expand their contribution to our national energy needs. The Committee is also concerned that distributed energy research and development programs, including microcogeneration technology, by being placed in the Office of Electricity Delivery and Energy Reliability, will lose priority to the grid security mission that drives this Office. Distributed energy programs remain a priority for the Committee because of the potential of distributed energy technologies to better manage energy supply and demand.

The Committee intends that DOE, as the central repository of information and expertise on energy matters with a national perspective, should continue to support federal, regional, and state efforts to develop and deploy the full range of renewable energy technologies. DOE should continue to make use of expertise at the National Laboratories to support these efforts. The Committee believes that DOE, in supporting future state and regional efforts, should continue to maintain key competencies in resource assessment, technology characterization, research coordination and planning, and similar activities needed to support federal, regional, and state efforts to develop and transfer new technologies.

Section 10. Plug-in Hybrid Electric Vehicle Technology Program. The Committee's objective in this section is to encourage the development of plug-in hybrid electric vehicles and related advanced vehicle technologies to a sufficient degree to enable their entry into the consumer marketplace. Plug-in hybrid electric vehicles can reduce demand for oil by transferring some of the energy demand for transportation to the electric grid, typically at night, when the grid is operating well below capacity. As the number of plug-in hybrid electric vehicles on the road increases, the demand for petroleum consumed by cars will decrease, as will U.S. dependence on foreign sources of oil. The R&D portion of this section will help advance the development of technology components required for plug-in hybrid electric vehicles, including battery technologies, power electronics, and charging components. In addition, these technologies may be able to serve a variety of transportation needs and other purposes, including medium- and heavy-duty trucks, and a variety of special-purpose vehicles. The authority granted in the legislation is intended to be broad enough to allow the Secretary to pursue promising R&D identified by DOE as offering significant potential for future oil savings.

The Committee has defined a plug-in hybrid electric vehicle as a light-duty vehicle capable of traveling a minimum of twenty miles on a single recharge, under city driving conditions, using energy solely from the battery; this can also be referred to as twenty `electric-only' miles. This definition was necessary to create a minimum threshold of eligibility for the demonstration program. The Committee understands that plug-in hybrid electric vehicles capable of traveling for twenty miles on battery power alone may not be operated that way and that other modes of operation could offer greater potential for oil savings.

The Committee recognizes the significant advances in battery technology that have been achieved through DOE's Advanced Vehicle Battery Technology program, and understands that there is a technical continuum between hybrid electric vehicle batteries and plug-in hybrid electric vehicle batteries. Therefore, the Committee encourages DOE to maintain and expand its current programs with the objective of efficiently managing both hybrid electric vehicle and plug-in hybrid electric vehicle programs in a manner that will optimize synergies and avoid duplication.

To create an incentive for the demonstration of plug-in hybrid electric vehicle technologies with the greatest potential for oil savings, the bill specifies a preference for grant applications that propose to demonstrate a higher `electric-only' range. However, in addition to advancing technologies needed for plug-in hybrid electric vehicles, the Committee believes that the objective of the demonstration program is to gather data on real-world operation of vehicles that consumers would like to drive. Therefore, the Committee intends for DOE to select projects for demonstration that will use vehicles with standard features and characteristics that would make the vehicles attractive to consumers absent the equipment being demonstrated.

The Committee also expects that the program will focus funding on technologies capable of achieving greater than 30 percent power capture from regenerative braking.

The Committee believes that the lightweight materials RD&D and commercial application program authorized in this section should focus on materials that will reduce vehicle weight and increase fuel economy while maintaining safety. Similar to the program in subsection (d), the Committee expects that other vehicles, including medium and heavy-duty vehicles, will benefit from the lightweight materials RD&D program.

While the Secretary is provided the discretion to determine the grant amount needed, the Committee expects that the grant amount will equal no more than the marginal

amount needed to provide sufficient incentive for State and local governments to participate in the demonstration program.

The Committee expects the Secretary to require that information and knowledge gained by the participants in the pilot program be summarized and provided to any interested party. The Committee expects that DOE will be the central clearinghouse and repository for that data.

Section 11. Photovoltaic Demonstration Program. The Committee has a strong interest in solar technologies and feels that the benefits of using photovoltaics are worthy of significant increases in Federal investment, especially in light of foreign competition. With the level of funding authorized in this section, the Secretary should be able to demonstrate an aggregate of at least 300 megawatts of power. The benefits of the solar demonstration program include the production of electricity at periods of peak demand, which could reduce the price of electricity for all customers, with minimal environmental impact, and the reduction of natural gas consumption. By conducting the demonstration program through the States, the Committee believes that individual demonstrations can best be targeted to specific needs and opportunities in each region of the country.

The States are required to submit proposals to be eligible for the program, which along with the required 10 percent State cost-share, ensures that the States are committed to the goals of the program. For those States failing to submit qualifying proposals, the unclaimed funds will be distributed pro rata to those States that have submitted qualifying proposals. If sufficient funds are appropriated, then the Secretary shall allocate 25 percent of the available funds through a national competition, based on the quality of the proposals submitted by the States that qualify for the program. The Secretary should support demonstrations that focus on newer materials and technologies in the devices; the Committee expects that the program will be used by the Secretary to fund various types of solar photovoltaic technologies, such as wafer-based silicon (single- and multi-crystalline) photovoltaic modules and thin-film (polycrystalline cadmium telluride, copper indium gallium di-selenide, and amorphous silicon) photovoltaic modules.

Section 12. Energy Efficient Building Grant Program. The Committee views the pilot energy efficient building grant program in this section as a means to promote demonstration and commercial application of innovative energy technologies, to encourage energy efficiency in buildings, and to inform the building design, construction, and real estate sectors about opportunities for energy efficiency. The Committee expects that the Secretary will establish guidelines for this program within six months of enactment of this Act, and will issue the first solicitation for grant proposals within one year. Furthermore, the Committee intends for the Secretary to consider a broad range of applicants, including owners of commercial, institutional, public, and residential buildings. Finally, in paragraph (4)(B), the Committee expects that the independent certification organization will have procedures for obtaining data, and that a summary of such procedures will be appended to the report to Congress required in paragraph (5). The Committee expects the Secretary to ensure, to the extent practicable, that program funds are targeted to participants that would otherwise not incorporate energy efficient design in their buildings.

Section 13. Energy Extension. The Committee is concerned that the Federal government does not sufficiently assist in helping to transfer and provide education on energy efficiency and distributed clean energy technologies, developed by DOE and at the National Laboratories, to energy end-users. This section is not intended to create a new entity or bureaucracy within DOE but to encourage DOE to partner with existing community outreach networks, including, but not limited to, cooperative extension services and State Energy Offices that have a history of transferring knowledge and technologies through educational activities, to achieve the aforementioned objective. The Committee intends that DOE not fund the creation of entirely new outreach networks under this Act, although the Committee does recognize that existing networks may need to be expanded to bring in appropriate energy expertise and partners. Grantees are encouraged, for example, to work with, and through, utilities to carry out informational activities for energy end-users.

With respect to subsection 13(g), the Committee intends that the construction prohibition apply only to the construction of buildings for the purpose of housing the Centers. Nothing in this subsection should be construed to prohibit leasing of facilities for Centers, nor the interior build-out, renovation, or adaptation of leased space to meet the needs of a Center. For example, the Committee intends that it would be permissible to build a wall for an educational exhibit showing high energy efficiency windows.

Section 14. Green Energy Education. The Committee intends this section to promote broad collaboration between universities and DOE applied energy technology programs. The Committee expects that the funding DOE provides to NSF for IGERT, authorized under this section, will come primarily from the fossil, nuclear, electricity delivery and energy reliability, and energy efficiency and renewable energy programs. The Committee does not intend for the energy technology offices to shift their responsibility of partnering with universities to cultivate the next generation of energy technology experts to the Office of Science.

IX. COST ESTIMATE

A cost estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974 has been timely submitted to the Committee on Science prior to the filing of this report and is included in Section X of this report pursuant to House Rule XIII, clause 3(c)(3).

H.R. 5656 contains new budget authority and new credit authority but does not include changes in revenues or tax expenditures. Assuming that the sums authorized under the bill are appropriated, H.R. 5656 does authorize additional discretionary spending, as described in the Congressional Budget Office report on the bill, which is contained in Section X of this report.

X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE


July 12, 2006.

Hon. SHERWOOD L. BOEHLERT,
Chairman, Committee on Science,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5656, the Energy Research, Development, Demonstration, and Commercial Application Act of 2006.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Megan Carroll.

Sincerely,

Donald B. Marron,

Acting Director.

Enclosure.

H.R. 5656--Energy Research, Development, Demonstration, and Commercial Application Act of 2006

Summary: H.R. 5656 would authorize appropriations for various research and development activities at the Department of Energy (DOE). Most of those activities would be related to energy efficiency and renewable energy technologies.

Assuming appropriation of the specified and estimated amounts, CBO estimates that implementing H.R. 5656 would cost $311 million in 2007 and about $3.2 billion over the 2007-2011 period. Enacting H.R. 5656 would not affect direct spending or revenues.

H.R. 5656 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA); the bill would benefit state, local, and tribal governments, and any costs they incur would result from complying with conditions of federal assistance.

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5656 is shown in the following table. The costs of this legislation fall within budget function 250 (general science, space, and technology) and 270 (energy). 



----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                                                            By fiscal year, in millions of dollars--                          


                                                                                                                                                                2006 2007 2008 2009 2010 2011 


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


SPENDING SUBJECT TO APPROPRIATION                                                                                                                                                             


Spending Under Current Law for Energy Efficiency, Renewable Energy Technology, and Nuclear Fuel Cycle Technology Programs:                                                                    


Budget Authority                                                                                                                                                 672    0    0    0    0    0 


Estimated Outlays                                                                                                                                                618  348   97   34    0    0 


Proposed Changes:                                                                                                                                                                             


Estimated Authorization Level                                                                                                                                      0  692  773  853  749  610 


Estimated Outlays                                                                                                                                                  0  311  625  763  790  698 


Spending Under H.R. 5656 for Energy Efficiency, Renewable Energy Technology, and Nuclear Fuel Cycle Technology Programs:                                                                      


Authorization Level                                                                                                                                              672  692  773  853  749  610 


Estimated Outlays                                                                                                                                                618  659  721  796  790  698 


Memorandum:                                                                                                                                                                                   


Amounts Authorized for Bioenergy Programs                                                                                                                          0  213  251  274    0    0 


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


Basis of estimate: For this estimate, CBO assumes that H.R. 5656 will be enacted near the start of fiscal year 2007. We also assume that amounts authorized and estimated to be necessary will be appropriated for each fiscal year and that spending will follow historical patterns for ongoing or similar activities.

CBO estimates that H.R. 5656 would authorize the appropriation of $692 million in 2007 and nearly $3.7 billion over the 2007-2011 period for various research and development activities at DOE. Nearly all of those amounts would be specifically authorized for research, development, and demonstration activities related primarily to energy efficiency and renewable energy technologies. The bill would specify that a portion of amounts authorized to be appropriated under current law for bioenergy programs be used to support projects to develop certain fuels from biomass. The amounts authorized for such programs under H.R. 5656 would exceed current authorization levels, and we have included those amounts in this estimate.

CBO estimates that implementing the bill would cost $311 million in 2007 and nearly $3.2 billion over the next five years. Those amounts include:

















The bill would authorize specific amounts for the first six items above; the last two were estimated by CBO.

Based on information from DOE and other affected agencies, CBO estimates that implementing other provisions of H.R. 5656 would have no significant impact on the federal budget. Those provisions would:









Intergovernmental and private-sector impact: H.R. 5656 contains no intergovernmental or private-sector mandates as defined in UMRA. The bill would authorize research activities and grant funds that would primarily benefit institutions of higher education. Any costs they or state, local, or tribal governments might incur, including matching funds, would result from complying with conditions of federal assistance.

Estimate prepared by: Federal Costs: Megan Carroll. Impact on State, Local, and Tribal Governments: Lisa Ramirez-Branum. Impact on the Private Sector: Craig Cammarata.

Estimate approved by: Robert A. Sunshine, Assistant Director for Budget Analysis .

XI. COMPLIANCE WITH PUBLIC LAW 104-4


H.R. 5656 contains no unfunded mandates.

XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS


The Committee on Science's oversight findings and recommendations are reflected in the body of this report.

XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES


The goal of H.R. 5656 is to advance research, development, demonstration, and commercial application of a broad suite of energy technologies that have the potential to enhance energy security, to reduce the environmental impact of energy use, and to improve our balance of trade by reducing our dependence on foreign fuels.

XIV. CONSTITUTIONAL AUTHORITY STATEMENT


Article I, section 8 of the Constitution of the United States grants Congress the authority to enact H.R. 5656.

XV. FEDERAL ADVISORY COMMITTEE STATEMENT


H.R. 5656 does not create any advisory committees.

XVI. CONGRESSIONAL ACCOUNTABILITY ACT


The Committee finds that H.R. 5656 does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104-1).

XVII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW


This bill is not intended to preempt any state, local, or tribal law.

XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED




ENERGY POLICY ACT OF 2005


* * * * * * *

TITLE IX--RESEARCH AND DEVELOPMENT


* * * * * * *

Subtitle A--Energy Efficiency


* * * * * * *

 [Struck out->][ SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS. ][<-Struck out]














































SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.




















































































* * * * * * *

Subtitle C--Renewable Energy


SEC. 931. RENEWABLE ENERGY.




* * * * * * *









* * * * * * *

SEC. 932. BIOENERGY PROGRAM.




* * * * * * *











* * * * * * *



* * * * * * *



* * * * * * *

XIX. COMMITTEE RECOMMENDATIONS


On June 27, 2006, a quorum being present, the Committee on Science favorably reported H.R. 5656, as amended, by a voice vote, and recommended its enactment.

Insert graphic folio 44 HR611.001

Insert graphic folio 45 HR611.002

XXI. ADDITIONAL VIEWS


-

ADDITIONAL VIEWS OF HON. BART GORDON


SECTION 15. ARPA-E


Section 15 of the bill as amended calls for the Secretary, through the National Academies of Science, to revisit the recommendation to create an Advanced Research Projects Agency for Energy (ARPA-E) set out in the October 2005 Nationa