Energy Cooperation Act
(July 27, 2006)
In July 2006, the U.S. House of Representatives passed by a voice vote H.R. 2730 - the United States-Israel Energy Cooperation Act. The legislation would create a $20 million annual grant program administered by the U.S. Department of Energy "to fund eligible joint ventures between United States and Israeli businesses and academic persons," among other purposes.
H. R. 2730
To authorize funding for eligible joint ventures between
United States and Israeli businesses and academic persons,
to establish the International Energy Advisory Board,
and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `United States-Israel
Energy Cooperation Act'.
SEC. 2. FINDINGS.
(1) it is in the highest national security interests
of the United States to ensure secure access to
reliable energy sources;
(2) the United States relies heavily on the foreign
supply of crude oil to meet the energy needs of
the United States, currently importing 58 percent
of the total oil requirements of the United States,
of which 45 percent comes from member states of
the Organization of Petroleum Exporting Countries
(3) revenues from the sale of oil by some of these
countries directly or indirectly provide funding
for terrorism and propaganda hostile to the values
of the United States and the West;
(4) in the past, these countries have manipulated
the dependence of the United States on the oil
supplies of these countries to exert undue influence
on United States policy, as during the embargo
of OPEC during 1973 on the sale of oil to the United
States, which became a major factor in the ensuing
(5) research by the Energy Information Administration
of the Department of Energy has shown that the
dependence of the United States on foreign oil
will increase by 33 percent over the next 20 years;
(6) a rise in the price of imported oil sufficient
to increase gasoline prices by 10 cents per gallon
at the pump would result in an additional outflow
of $18,000,000,000 from the United States to oil-exporting
(7) for economic and national security reasons, the
United States should reduce, as soon as practicable,
the dependence of the United States on nations
that do not share the interests and values of the
(8) the State of Israel has been a steadfast ally
and a close friend of the United States since the
creation of Israel in 1948;
(9) like the United States, Israel is a democracy
that holds civil rights and liberties in the highest
regard and is a proponent of the democratic values
of peace, freedom, and justice;
(10) cooperation between the United States and Israel
on such projects as the development of the Arrow
Missile has resulted in mutual benefits to United
States and Israeli security;
(11) the special relationship between Israel and
the United States has been and continues to be
manifested in a variety of jointly-funded cooperative
programs in the field of scientific research and
development, such as--
(A) the United States-Israel Binational Science
(B) the Israel-United States Binational Agricultural
Research and Development Fund (BARD); and
(C) the Israel-United States Binational Industrial
Research and Development (BIRD) Foundation;
(12) these programs, supported by the matching contributions
from the Government of Israel and the Government
of the United States and directed by key scientists
and academics from both countries, have made possible
many scientific breakthroughs in the fields of
life sciences, medicine, bioengineering, agriculture,
biotechnology, communications, and others;
(13) on February 1, 1996, United States Secretary
of Energy Hazel R. O'Leary and Israeli Minister
of Energy and Infrastructure Gonen Segev signed
the Agreement Between the Department of Energy
of the United States of America and the Ministry
of Energy and Infrastructure of Israel Concerning
Energy Cooperation, to establish a framework for
collaboration between the United States and Israel
in energy research and development activities;
(14) Israeli scientists and researchers have long
been at the forefront of research and development
in the field of alternative renewable energy sources;
(15) many of the top corporations of the world have
recognized the technological and scientific expertise
of Israel by locating important research and development
facilities in Israel;
(16) among the technological breakthroughs made by
Israeli scientists and researchers in the field
of alternative, renewable energy sources are--
(A) the development of a cathode that uses hexavalent
iron salts that accept 3 electrons per ion and
enable rechargeable batteries to provide 3 times
as much electricity as existing rechargeable
(B) the development of a technique that vastly
increases the efficiency of using solar energy
to generate hydrogen for use in energy cells;
(C) the development of a novel membrane used in
new and powerful direct-oxidant fuel cells that
is capable of competing favorably with hydrogen
fuel cells and traditional internal combustion
(17) cooperation between the United States and Israel
in the field of research and development of alternative
renewable energy sources would be in the interests
of both countries, and both countries stand to
gain much from such cooperation.
SEC. 3. GRANT PROGRAM.
(a) Authority- Pursuant to the responsibilities described
in section 102(10), (14), and (17) of the Department
of Energy Organization Act (42 U.S.C. 7112(10), (14),
and (17)) and section 103(9) of the Energy Reorganization
Act of 1974 (42 U.S.C. 5813(9)), the Secretary, in
consultation with the BIRD or BSF, shall award grants
to eligible entities.
(1) SUBMISSION OF APPLICATIONS- To receive a grant
under this section, an eligible entity shall submit
an application to the Secretary containing such
information and assurances as the Secretary, in
consultation with the BIRD or BSF, may require.
(2) SELECTION OF ELIGIBLE ENTITIES- The Secretary,
in consultation with the Directors of the BIRD
and BSF, may review any application submitted by
any eligible entity and select any eligible entity
meeting criteria established by the Secretary,
in consultation with the Advisory Board, for a
grant under this section.
(c) Amount of Grant- The amount of each grant awarded
for a fiscal year under this section shall be determined
by the Secretary, in consultation with the BIRD or
(1) IN GENERAL- Not later than 180 days after the
date of enactment of this Act, the Secretary shall
establish procedures and criteria for recoupment
in connection with any eligible project carried
out by an eligible entity that receives a grant
under this section, which has led to the development
of a product or process which is marketed or used.
(A) Except as provided in subparagraph (B), such
recoupment shall be required as a condition for
award and be proportional to the Federal share
of the costs of such project, and shall be derived
from the proceeds of royalties or licensing fees
received in connection with such product or process.
(B) In the case where a product or process is used
by the recipient of a grant under this section
for the production and sale of its own products
or processes, the recoupment shall consist of
a payment equivalent to the payment which would
be made under subparagraph (A).
(3) WAIVER- The Secretary may at any time waive or
defer all or some of the recoupment requirements
of this subsection as necessary, depending on--
(A) the commercial competitiveness of the entity
or entities developing or using the product or
(B) the profitability of the project; and
(C) the commercial viability of the product or
(e) Private Funds- The Secretary may accept contributions
of funds from private sources to carry out this Act.
(f) Office of Energy Efficiency and Renewable Energy-
The Secretary shall carry out this section through
the existing programs at the Office of Energy Efficiency
and Renewable Energy.
(g) Report- Not later than 180 days after receiving
a grant under this section, each recipient shall
submit a report to the Secretary--
(1) documenting how the recipient used the grant
(2) evaluating the level of success of each project
funded by the grant.
SEC. 4. INTERNATIONAL ENERGY ADVISORY BOARD.
(a) Establishment- There is established in the Department
of Energy an International Energy Advisory Board.
(b) Duties- The Advisory Board shall advise the Secretary
(1) criteria for the recipients of grants awarded
under section 3(a);
(2) the total amount of grant money to be awarded
to all grantees selected by the Secretary, in consultation
with the BIRD; and
(3) the total amount of grant money to be awarded
to all grantees selected by the Secretary, in consultation
with the BSF, for each fiscal year.
(1) COMPOSITION- The Advisory Board shall be composed
(A) 1 member appointed by the Secretary of Commerce;
(B) 1 member appointed by the Secretary of Energy;
(C) 2 members who shall be Israeli citizens, appointed
by the Secretary of Energy after consultation
with appropriate officials in the Israeli Government.
(2) DEADLINE FOR APPOINTMENTS- The initial appointments
under paragraph (1) shall be made not later than
60 days after the date of enactment of this Act.
(3) TERM- Each member of the Advisory Board shall
be appointed for a term of 4 years.
(4) VACANCIES- A vacancy on the Advisory Board shall
be filled in the manner in which the original appointment
(A) COMPENSATION- A member of the Advisory Board
shall serve without pay.
(B) TRAVEL EXPENSES- Each member of the Advisory
Board shall receive travel expenses, including
per diem in lieu of subsistence, in accordance
with applicable provisions of subchapter I of
chapter 57 of title 5, United States Code.
(6) QUORUM- Three members of the Advisory Board shall
constitute a quorum.
(7) CHAIRPERSON- The Chairperson of the Advisory
Board shall be designated by the Secretary of Energy
at the time of the appointment.
(8) MEETINGS- The Advisory Board shall meet at least
once annually at the call of the Chairperson.
(d) Termination- Section 14(a)(2)(B) of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Advisory Board.
SEC. 5. DEFINITIONS.
(1) ADVISORY BOARD- The term `Advisory Board' means
the International Energy Advisory Board established
by section 4(a).
(2) BIRD- The term `BIRD' means the Israel-United
States Binational Industrial Research and Development
(3) BSF- The term `BSF' means the United States-Israel
Binational Science Foundation.
(4) ELIGIBLE ENTITY- The term `eligible entity' means
a joint venture comprised of both Israeli and United
States private business entities or a joint venture
comprised of both Israeli academic persons (who
reside and work in Israel) and United States academic
(A) carries out an eligible project; and
(B) is selected by the Secretary, in consultation
with the BIRD or BSF, using the criteria established
by the Secretary, in consultation with the Advisory
(5) ELIGIBLE PROJECT- The term `eligible project'
means a project to encourage cooperation between
the United States and Israel on research, development,
or commercialization of alternative energy, improved
energy efficiency, or renewable energy sources.
(6) SECRETARY- The term `Secretary' means the Secretary
of Energy, acting through the Assistant Secretary
of Energy for Energy Efficiency and Renewable Energy.
SEC. 6. TERMINATION.
The grant program authorized under section 3 and the
Advisory Board shall terminate upon the expiration
of the 7-year period which begins on the date of
the enactment of this Act.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
The Secretary is authorized to expend not more than
$20,000,000 to carry out this Act for each of fiscal
years 2006 through 2012 from funds previously authorized
to the Office of Energy Efficiency and Renewable
SEC. 8. CONSTITUTIONAL AUTHORITY.
The Constitutional authority on which this Act rests
is the power of Congress to regulate commerce with
foreign nations as enumerated in Article I, Section
8 of the United States Constitution.
Sources: Library of Congress