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[Senate Report 111-335]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 622
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-335

======================================================================

 
                    ADVANCED VEHICLE TECHNOLOGY ACT

                                _______
                                

               September 28, 2010.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                            R  E  P  O  R  T

                         [To accompany S. 2843]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2843) to provide for a program of 
research, development, demonstration, and commercial 
application in vehicle technologies at the Department of 
Energy, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Advanced Vehicle 
Technology Act of 2010''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

                TITLE I--VEHICLE RESEARCH AND DEVELOPMENT

Sec. 101. Program.
Sec. 102. Sensing and communications technologies.
Sec. 103. Manufacturing.
Sec. 104. User testing facilities.
Sec. 105. Reports.
Sec. 106. Innovative Automotive Demonstration Program.

     TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES

Sec. 201. Program.
Sec. 202. Class 8 truck and trailer systems demonstration.
Sec. 203. Technology testing and metrics..
Sec. 204. Nonroad systems pilot program.

 TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM

Sec. 301 Advanced technology vehicles manufacturing incentive program.

                     TITLE IV--NATURAL GAS VEHICLES

Sec. 401 Natural gas vehicle research, development, and demonstration.
Sec. 402. Study of increasing natural gas and liquefied petroleum gas 
          vehicles in Federal fleet.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

Sec. 501. Authorization of appropriations.
Sec. 502. Cost-sharing requirement.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
          (1) according to the Energy Information Administration, the 
        transportation sector accounts for approximately 28 percent of 
        the United States primary energy demand and greenhouse gas 
        emissions, and 24 percent of global oil demand;
          (2) the United States transportation sector is over 95 
        percent dependent on petroleum, and over 60 percent of 
        petroleum demand is met by imported supplies;
          (3) United States heavy truck fuel consumption will increase 
        23 percent by 2030, while overall transportation energy use 
        will decline by 1 percent;
          (4) the domestic automotive and commercial vehicle 
        manufacturing sectors have increasingly limited resources for 
        research, development, and engineering of advanced 
        technologies;
          (5) domestic vehicle, engine, and component manufacturers are 
        playing a more important role in vehicle technology 
        development, awl should be better integrated into Federal 
        research efforts;
          (6) priorities for vehicle technologies research of the 
        Department of Energy have shifted drastically in recent years 
        among diesel hybrids, hydrogen fuel cell vehicles, and plug-in 
        electric hybrids, with little continuity among the vehicle 
        technologies;
          (7) the integration of vehicle, communication, and 
        infrastructure technologies has great potential for efficiency 
        gains through better management of the total transportation 
        system; and
          (8) the Federal Government should balance the role of the 
        Federal Government in researching longer-term exploratory 
        concepts and developing nearer-term transformational 
        technologies for domestic-made vehicles.
    (b) Purposes.--The purposes of this Act are--
          (1) to reform and reorient the vehicle technologies programs 
        of the Department of Energy;
          (2) to develop and promote the deployment of technologies and 
        practices that--
                  (A) improve the fuel efficiency and emissions of all 
                vehicles produced in the United States; and
                  (B) reduce vehicle reliance on petroleum-based fuels;
          (3) to support domestic research, development, demonstration, 
        deployment, engineering, and commercial application and 
        domestic manufacturing of advanced vehicles, engines, and 
        components;
          (4) to enable vehicles to move larger volumes of goods and 
        more passengers with less energy and emissions;
          (5) to develop cost-effective advanced technologies for wide-
        scale utilization throughout the passenger, commercial, 
        government, and transit vehicle sectors;
          (6) to allow for greater consumer choice of domestic-made 
        vehicle technologies and fuels;
          (7) to shorten technology development and integration cycles 
        in the domestic vehicle industry;
          (8) to ensure a proper balance and diversity of Federal 
        investment in domestic-made vehicle technologies;
          (9) to promote the integration of intelligent vehicle 
        technologies with infrastructure-based information and 
        communications systems and the electrical grid; and
          (10) to strengthen partnerships between Federal and State 
        governmental agencies and the private and academic sectors.

SEC. 3. DEFINITIONS.

    In this Act:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
          (2) Department.--The term ``Department'' means the Department 
        of Energy.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

               TITLE I--VEHICLE RESEARCH AND DEVELOPMENT

SEC. 101. PROGRAM.

    (a) Activities.--In carrying out the Vehicle Technologies Program 
of the Department, the Secretary shall conduct basic and applied 
research, development, engineering, demonstration, and commercial 
application activities on materials, technologies, and processes with 
the potential to substantially reduce or eliminate petroleum use by, 
and emissions from, passenger and commercial vehicles of the United 
States, including activities in the areas of--
          (1) hybridization or full electrification of vehicle systems;
          (2) batteries, ultracapacitors, and other energy storage 
        devices;
          (3) power electronics;
          (4) vehicle, component, and subsystem manufacturing 
        technologies and processes;
          (5) engine efficiency and combustion optimization;
          (6) waste heat recovery;
          (7) transmission and drivetrains;
          (8) hydrogen vehicle technologies, including fuel cells and 
        internal combustion engines, and hydrogen infrastructure;
          (9) aerodynamics, rolling resistance, and accessory power 
        loads of vehicles and associated equipment;
          (10) vehicle weight reduction, including lightweight 
        materials;
          (11) friction and wear reduction;
          (12) engine and component durability;
          (13) innovative propulsion systems;
          (14) advanced boosting systems;
          (15) hydraulic hybrid technologies;
          (16) engine compatibility with and optimization for a variety 
        of transportation fuels, including liquid and gaseous fuels;
          (17) predictive engineering, modeling, and simulation of 
        vehicle and transportation systems;
          (18) refueling and charging infrastructure for alternative 
        fueled and electric or plug-in electric hybrid vehicles, 
        including the unique challenges facing rural areas;
          (19) gaseous fuels storage system integration and 
        optimization;
          (20) sensing, communications, and actuation technologies for 
        vehicle, electrical grid, and infrastructure;
          (21) efficient use and recycling of rare earth materials and 
        reduction of precious metals and other high-cost materials in 
        vehicles;
          (22) aftertreatment technologies;
          (23) thermal management of battery systems;
          (24) retrofitting advanced vehicle technologies to existing 
        vehicles;
          (25) development of common standards, specifications, and 
        architectures for both transportation and stationary battery 
        applications;
          (26) development of innovative materials, including 
        constructive, connective, and reinforcing vehicle components; 
        and
          (27) other research areas, as determined by the Secretary.
    (b) Transformational Technology.--The Secretary, in coordination 
with the Secretary of Transportation (if appropriate), shall ensure 
that the Department continues to support domestic research, 
development, engineering, demonstration, and commercial application 
activities and maintains competency in mid- to long-term 
transformational vehicle technologies with the potential to achieve 
deep reductions in petroleum use and emissions, including activities in 
the areas of--
          (1) hydrogen vehicle technologies, including fuel cells, 
        internal combustion engines, hydrogen storage, infrastructure, 
        and activities in hydrogen technology validation and safety 
        codes and standards;
          (2) multiple battery chemistries and novel energy storage 
        devices, including nonchemical batteries and electromechanical 
        storage technologies such as hydraulics, flywheels, bipolar 
        design, and compressed air storage;
          (3) communication and connectivity among vehicles, 
        infrastructure, and the electrical grid;
          (4) lightweight vehicles and materials; and
          (5) other innovative technologies research and development, 
        as determined by the Secretary.
    (c) Industry Participation.----
          (1) In general.--To the maximum extent practicable, 
        activities under this Act shall be carried out in partnership 
        or collaboration with----
                  (A) automotive manufacturers;
                  (B) heavy commercial and transit vehicle 
                manufacturers;
                  (C) qualified plug-in electric vehicle manufacturers;
                  (D) vehicle and engine equipment and component 
                manufacturers;
                  (E) manufacturing equipment manufacturers;
                  (F) advanced vehicle service providers;
                  (G) fuel producers and energy suppliers;
                  (H) electric utilities;
                  (I) institutions of higher education;
                  (J) National Laboratories; and
                  (K) independent research laboratories.
          (2) Administration.--In carrying out this Act, the Secretary 
        shall----
                  (A) determine whether a wide range of companies that 
                manufacture or assemble vehicles or components in the 
                United States are represented in ongoing public private 
                partnership activities, including firms that have not 
                traditionally participated in federally sponsored 
                research and development activities, and if 
                practicable, partner with such firms that conduct a 
                substantial portion of relevant research and 
                development activities in the United States;
                  (B) leverage the capabilities and resources of, and 
                formalize partnerships with, industry-led stakeholder 
                organizations, nonprofit organizations, industry 
                consortia, and trade associations with expertise in the 
                research and development of, and education and outreach 
                activities in, advanced automotive and commercial 
                vehicle technologies;
                  (C) develop more efficient processes for transferring 
                research findings and technologies to industry;
                  (D) give consideration to conversion of existing or 
                former vehicle technology development or manufacturing 
                facilities for the purposes of this Act, and support 
                public-private partnerships dedicated to overcoming 
                barriers in commercial application of transformational 
                vehicle technologies that use such industry-led 
                facilities;
                  (E) promote efforts to ensure that technologies 
                developed under this Act are produced in the United 
                States; and
                  (F) establish public-private partnerships dedicated 
                to overcoming barriers to the commercial application of 
                transformational vehicle technologies, using existing 
                industry-led domestic technology development facilities 
                of entities with demonstrated expertise in successfully 
                designing and engineering precommercial generations of 
                such transformational technology.
    (d) Interagency and Intraagenecy Coordination.--To the maximum 
extent practicable, the Secretary shall coordinate research, 
development, engineering, demonstration, and commercial application 
activities among----
          (1) relevant programs within the Department, including----
                  (A) the Office of Energy Efficiency and Renewable 
                Energy;
                  (B) the Office of Science;
                  (C) the Office of Electricity Delivery and Energy 
                Reliability;
                  (D) the Office of Fossil Energy;
                  (E) the Advanced Research Projects Agency--Energy; 
                and
                  (F) other offices, as determined by the Secretary; 
                and
          (2) relevant technology research and development programs 
        within the Department of Transportation and other Federal 
        agencies, as determined by the Secretary.
    (e) Coordination and Nonduplication.--In coordinating activities, 
the Secretary shall ensure, to the maximum extent practicable, that 
activities do not duplicate activities of other programs within the 
Department or other relevant research agencies.
    (f) Federal Demonstration of Technologies.--The Secretary shall 
make information available to procurement programs of Federal agencies 
regarding the potential to demonstrate technologies resulting from 
activities funded through programs under this Act.
    (g) Intergovernmental Coordination.--The Secretary shall seek 
opportunities to leverage resources and support initiatives of State 
and local governments in developing and promoting advanced vehicle 
technologies, manufacturing, and infrastructure.

SEC. 102. SENSING AND COMMUNICATIONS TECHNOLOGIES.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Transportation and relevant research programs of other Federal 
agencies, shall conduct research, development, engineering, and 
demonstration activities on connectivity of domestic vehicle and 
transportation systems, including on sensing, computation, 
communication, actuation, and information technologies that allow for 
reduced fuel use, optimized traffic flow, improved freight logistics, 
and vehicle electrification, including technologies for--
          (1) onboard vehicle, engine, and component sensing and 
        actuation;
          (2) vehicle-to-vehicle sensing and communication;
          (3) vehicle-to-infrastructure sensing and communication;
          (4) vehicle integration with the electrical grid; and
          (5) driver-to-vehicle integration and communication.
    (b) Coordination.--The activities carried out under this section 
should supplement, and not duplicate, activities under the intelligent 
transportation system research program of the Department of 
Transportation.

SEC. 103. MANUFACTURING.

    The Secretary shall carry out a research, development, engineering, 
demonstration, and commercial application program of domestic advanced 
vehicle manufacturing technologies and practices, including innovative 
processes to--
          (1) increase the production rate and decrease the cost of 
        advanced battery manufacturing;
          (2) vary the capability of individual manufacturing 
        facilities to accommodate different battery chemistries and 
        configurations;
          (3) reduce waste streams, emissions, and energy-intensity of 
        vehicle, engine, advanced battery, and component manufacturing 
        processes;
          (4) recycle and remanufacture used batteries and other 
        vehicle components for reuse in vehicles or stationary 
        applications;
          (5) produce cost-effective lightweight materials, such as 
        advanced metal alloys, polymeric composites, and carbon fiber;
          (6) produce lightweight high pressure storage systems for 
        gaseous fuels;
          (7) design and manufacture purpose-built hydrogen and fuel 
        cell vehicles and components;
          (8) improve the calendar life and cycle life of advanced 
        batteries; and
           (9) produce permanent magnets for advanced vehicles.

SEC. 104. USER TESTING FACILITIES.

    Activities under this Act may include domestic construction, 
expansion, or modification of new and existing vehicle, engine, and 
component research and testing facilities for--
          (1) testing or simulating interoperability of a variety of 
        vehicle components and systems;
          (2) subjecting whole or partial vehicle platforms to fully 
        representative duty cycles and operating conditions;
          (3) developing and demonstrating a range of chemistries and 
        configurations for advanced vehicle battery manufacturing; and
          (4) developing and demonstrating test cycles for new and 
        alternative fuels and other advanced vehicle technologies.

SEC. 105. REPORTS.

    (a) Technologies--Not later than 18 months after the date of 
enactment of this Act and annually thereafter through calendar year 
2015, the Secretary shall submit to Congress a report regarding the 
technologies developed as a result of the activities authorized by this 
title, with a particular emphasis on--
          (1) whether the technologies were successfully adopted for 
        commercial applications; and
          (2) if so, whether those technologies are manufactured in the 
        United States.
    (b) Activities--At the end of each fiscal year the Secretary shall 
submit to the relevant Congressional committees of jurisdiction an 
annual report on activities undertaken during the fiscal year under 
this title, including--
          (1) active industry participants;
          (2) efforts to recruit new participants;
          (3) progress of the program in meeting goals and timelines; 
        and
          (4) a strategic plan for funding of activities across 
        agencies.

SEC. 106. INNOVATIVE AUTOMOTIVE DEMONSTRATION PROGRAM.

    (a) In General--The Secretary shall establish an Innovative 
Automotive Demonstration Program, within the Vehicle Technologies 
Program, to encourage the introduction of new domestic-made advanced 
technology vehicles into the marketplace that are designed in their 
entirety to achieve very high energy efficiency but still provide the 
capabilities required by consumers in the United States.
    (b) Administration.--The Program established under this section 
shall encourage--
          (1) the introduction of new light duty vehicles into the 
        marketplace that are capable of achieving energy efficiencies 
        significantly greater than required under applicable and 
        pending corporate average fuel economy standards; and
          (2) the use of materials and manufacturing techniques that 
        minimize environmental impacts.
    (c) Awards.--Awards under this section shall be made on a 
competitive basis for demonstration of domestic-made vehicles that--
          (1) are primarily for use on public streets, roads, and 
        highways and are not manufactured primarily for off-road use;
          (2) meet all Federal safety requirements;
          (3) achieve at least 70 miles per gallon or the equivalent on 
        drive cycle of the Environmental Protection Agency;
          (4) provide vehicle performance that is judged acceptable to 
        consumers in the United States;
          (5) be affordable to consumers in the United States;
          (6) use materials and manufacturing processes that minimize 
        environmental impacts;
          (7) meet all Federal and State emission requirements; and
          (8) provide new high technology engineering and production 
        employment opportunities.

    TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES

SEC. 201. PROGRAM.

    (a) In General.--In carrying out the 21st Century Truck Partnership 
of the Department, the Secretary, in partnership with relevant research 
and development programs in other Federal agencies and a range of 
appropriate industry stakeholders, shall conduct cooperative research, 
development, demonstration, and commercial application activities on 
advanced technologies for medium- to heavy-duty commercial, 
recreational, and transit vehicles, including activities in the areas 
of--
          (1) engine efficiency and combustion research;
          (2) onboard storage technologies for compressed and liquefied 
        natural gas;
          (3) development and integration of engine technologies 
        designed for natural gas operation of a variety of vehicle 
        platforms;
          (4) waste heat recovery and conversion;
          (5) improved aerodynamics and tire rolling resistance;
          (6) energy and space-efficient emissions control systems;
          (7) heavy hybrid, hybrid hydraulic, plug-in hybrid, and 
        electric platforms, and energy storage technologies;
          (8) drivetrain optimization;
          (9) friction and wear reduction;
          (10) engine idle and parasitic energy loss reduction;
          (11) electrification of accessory loads;
          (12) onboard sensing and communications technologies;
          (13) advanced lightweight materials and vehicle designs;
          (14) increasing load capacity per vehicle;
          (15) thermal management of battery systems;
          (16) recharging infrastructure;
          (17) complete vehicle modeling and simulation;
          (18) hydrogen vehicle technologies, including fuel cells and 
        internal combustion engines, and hydrogen infrastructure;
          (19) retrofitting advanced technologies onto existing truck 
        fleets; and
          (20) integration of those and other advanced systems onto a 
        single truck and trailer platform.
    (b) Director.--
          (1) In general.--The Secretary shall appoint a full-time 
        Director to coordinate research, development, demonstration, 
        and commercial application activities in medium- to heavy-duty 
        commercial, recreational, and transit vehicle technologies.
          (2) Duties.--The Director shall--
                  (A) improve coordination and develop consensus 
                between government agency and industry partners, and 
                propose new processes for program management and 
                priority setting to better align activities and budgets 
                among partners;
                  (B) regularly conduct workshops, site visits, 
                demonstrations, conferences, investor forums, and other 
                events in which information and research findings are 
                shared among program participants and interested 
                stakeholders;
                  (C) develop a budget for activities of the Department 
                regarding the interagency program established under 
                this title, and provide consultation and guidance on 
                vehicle technology funding priorities across agencies;
                  (D) determine a process for reviewing program 
                technical goals, targets, and timetables and, if 
                applicable, aided by life-cycle impact and cost 
                analysis, propose revisions or elimination based on 
                program progress, available funding, and rate of 
                technology adoption;
                  (E) evaluate ongoing activities of the program and 
                recommend project modifications, including the 
                termination of projects, if applicable; and
                  (F) other responsibilities, as determined by the 
                Secretary, in consultation with interagency and 
                industry partners.
    (d) Reports.--At the end of each fiscal year, the Secretary shall 
submit to Congress an annual report that describes activities 
undertaken during the fiscal year under this title, including--
          (1) active industry participants;
          (2) progress of the program in meeting goals and timelines; 
        and
          (3) a strategic plan for funding of activities across 
        agencies.

SEC. 202. CLASS 8 TRUCK AND TRAILER SYSTEMS DEMONSTRATION.

    (a) In General.--The Secretary shall conduct a competitive grant 
program to demonstrate the integration of multiple advanced 
technologies on Class 8 truck and trailer platforms with a goal of 
improving overall freight efficiency, as measured in tons and volume of 
freight hauled or other work performance-based metrics, by 50 percent, 
through a combination of technologies described in section 201(a).
    (b) Applicant Teams. Applicant teams may be comprised of truck and 
trailer manufacturers, engine and component manufacturers, fleet 
customers, information and communications technology manufacturers and 
providers, researchers of institutions of higher education, and other 
applicants, as appropriate, for the development and demonstration of 
integrated Class 8 truck and trailer systems.

SEC. 203. TECHNOLOGY TESTING AND METRICS.

    The Secretary, in coordination with the partners of the 21st 
Century Truck Partnership of the Department--
          (1) shall develop standard testing procedures and 
        technologies for evaluating the performance of advanced heavy 
        vehicle technologies under a range of representative duty 
        cycles and operating conditions, including heavy hybrid 
        propulsion systems;
          (2) shall evaluate heavy vehicle performance using work 
        performance-based metrics other than metrics based on miles per 
        gallon, including--
                  (A) metrics based on units of volume and weight 
                transported for freight applications; and
                  (B) appropriate metrics based on performance on 
                nonroad systems; and
          (3) may construct heavy duty truck and bus testing 
        facilities.

SEC. 204. NONROAD SYSTEMS PILOT PROGRAM.

    (a) In General.--The Secretary shall carry out a pilot program of 
research, development, demonstration, and commercial applications of 
technologies to improve total machine or system efficiency for nonroad 
mobile equipment, including agricultural and construction equipment.
    (b) Information Transfer.--In carrying out tins section, the 
Secretary shall seek opportunities to transfer relevant research 
findings and technologies between the nonroad and on-highway equipment 
and vehicle sectors.

TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM

SEC. 301. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    Section 136 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by redesignating subparagraphs (A) 
                        through (C) as clauses (i) through (iii), 
                        respectively, and indenting appropriately;
                          (ii) in the matter preceding clause (i) (as 
                        redesignated by clause (i)), by striking 
                        ``means an ultra efficient vehicle or a light 
                        duty vehicle that meets--'' and inserting the 
                        following:
    ``means--
                  ``(A) an ultra efficient vehicle or a light duty 
                vehicle that meets--'';
                          (iii) in clause (iii) (as redesignated by 
                        clause (i)), by striking the period at the end 
                        and inserting ``; or''; and
                          (iv) by adding at the end the following:
                  ``(B) a vehicle such as a medium-duty or heavy-duty 
                work truck, bus, or rail transit vehicle that--
                          ``(i) is used on a public street, road, 
                        highway, or transitway;
                          ``(ii) meets each applicable emissions 
                        standard that is established as of the date of 
                        the application; and
                          ``(iii) as determined by the Secretary, the 
                        deployment of which will reduce consumption of 
                        motor fuels by 25 percent or more, as compared 
                        to current surface transportation technologies 
                        that perform a similar function, unless the 
                        Secretary determines that--
                                  ``(I) the percentage is not 
                                achievable for a vehicle type or class; 
                                and
                                  ``(II) an alternative percentage for 
                                that vehicle type or class will result 
                                in substantial reductions in motor fuel 
                                consumption.'';
                  (B) in paragraph (3)(B)--
                          (i) by striking ``equipment and'' and 
                        inserting ``equipment,''; and
                          (ii) by inserting ``, and manufacturing 
                        process equipment'' after ``suppliers''; and
                  (C) by striking paragraph (4) and inserting the 
                following:
          ``(4) Qualifying components.--The term `qualifring 
        components' means components, systems, or groups of subsystems 
        that the Secretary determines to--
                  ``(A) be designed for improving fuel economy of 
                advanced technology vehicles; and
                  ``(B) contribute measurably to the overall fuel 
                economy of the advanced technology vehicles.'';
          (2) in subsection (b), in the matter preceding paragraph (1), 
        by striking ``to automobile'' and inserting ``to advanced 
        technology vehicle'';
          (3) in subsection (d)(1), in the first sentence, by striking 
        ``a total of not more than $25,000,000,000 in'';
          (4) in subsection (h)--
                  (A) in the subsection heading, by striking 
                ``Automobile'' and inserting ``Advanced Technology 
                Vehicle''; and
                  (B) in paragraph (1)(B), by striking ``automobiles'' 
                each place it appears and inserting ``advanced 
                technology vehicles''; and
          (5) in subsection (i), by striking ``2012'' and inserting 
        ``2015''.

                     TITLE IV--NATURAL GAS VEHICLES

SEC. 401. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
                    PROJECTS.

    (a) In General.--The Secretary, in coordination with the 
Administrator, shall conduct a program of natural gas vehicle research, 
development, and demonstration.
    (b) Purposes.--The purposes of the program conducted under this 
section are to focus on--
          (1) the continued improvement and development of new, 
        cleaner, more efficient light-duty, medium-duty, and heavy-duty 
        natural gas and vehicle engines;
          (2) the integration of those engines into light-duty, medium-
        duty, and heavy-duty natural gas vehicles for onroad and 
        offroad applications;
          (3) the expansion of product availability by assisting 
        manufacturers with the certification of the engines or vehicles 
        described in paragraph (1) or (2) to comply with Federal or 
        California certification requirements and in-use emission 
        standards;
          (4) the demonstration and proper operation and use of the 
        vehicles described in paragraph (2) under all operating 
        conditions;
          (5) the development and improvement of nationally recognized 
        codes and standards for the continued safe operation of 
        vehicles described in paragraph (2) and the components of the 
        vehicles;
          (6) the improvement in the reliability and efficiency of 
        natural gas fueling station infrastructure;
          (7) the certification of natural gas fueling station 
        infrastructure to nationally recognized and industry safety 
        standards;
          (8) the improvement in the reliability and efficiency of 
        onboard natural gas fuel storage systems;
          (9) the development of new natural gas fuel storage 
        materials;
          (10) the certification of onboard natural gas fuel storage 
        systems to nationally recognized and industry safety standards; 
        and
          (11) the use of natural gas engines in hybrid vehicles.
    (c) Certification of Aftermarket Conversion Systems.--
          (1) In general.--The Secretary shall coordinate with the 
        Administrator on issues relating to streamlining the 
        certification of natural gas aftermarket conversion systems to 
        comply with appropriate Federal certification requirements and 
        in-use emission standards.
          (2) Streamlined certification.--For purposes of paragraph 
        (1), streamlined certification shall include providing 
        aftermarket conversion system manufacturers the option to 
        continue to sell and install systems on engines and test groups 
        for which the manufacturers have previously received a 
        certifcate of conformity without having to request a new 
        certificate in future years.
    (d) Cooperation and Coordination With Industry.--In developing and 
carrying out the program under this section, the Secretary shall 
coordinate with the natural gas vehicle industry to ensure, to the 
maximum extent practicable, cooperation between the public and the 
private sector.
    (e) Administration.--The program under this section shall be 
conducted in accordance with sections 3001 and 3002 of the Energy 
Policy Act of 1992 (42 U.S.C. 13541, 13542).
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to the appropriate committees of 
Congress a report on the implementation of this section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to early out this section $30,000,000 for 
each of fiscal years 2011 through 2015.

SEC. 402. STUDY OF INCREASING NATURAL GAS AND LIQUEFIED PETROLEUM GAS 
                    VEHICLES IN FEDERAL FLEET.

    (a) In General--The Administrator of General Services, in 
consultation with the Administrator and the Secretary, shall conduct a 
study of the means by which the Federal fleet could increase the number 
of light-, medium-, and heavy-duty natural gas and liquefied petroleum 
gas vehicles in the fleet.
    (b) Components.--In conducting the study, the Administrator of 
General Services shall--
          (1) take into consideration Executive Order 13514 (74 Fed. 
        Reg. 52117; relating to Federal leadership in environmental, 
        energy, and economic performance) requiring agencies to meet a 
        30-percent reduction in vehicle fleet petroleum use by 2020;
          (2) assess--
                  (A) the barriers to increasing the number of natural 
                gas and liquefied petroleum gas vehicles in the Federal 
                fleet;
                  (B) the potential for maximizing the use of natural 
                gas and liquefied petroleum gas vehicles in the fleet;
                  (C) the expected reductions in petroleum use and 
                greenhouse gas emissions as part of the potential 
                impacts of increasing natural gas and liquefied 
                petroleum in the fleet; and
                  (D) the lifecycle costs involved in fleet 
                conversions, including the cost savings from reduced 
                fuel consumption;
          (3) provide a separate analysis of the potential costs of 
        installing the specific fueling infrastructure required to 
        increase natural gas and liquefied petroleum gas in the fleet; 
        and
          (4) include feasibility assessments for increasing the number 
        of light-, medium-, and heavy-duty natural gas and liquefied 
        petroleum gas vehicles in the fleet over a base period of 10 
        years and accelerated periods of 3 and 5 years.
    (c) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of General Services shall submit to the 
appropriate committees of Congress a report on the results of the study 
conducted under this section.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary such sums 
as are necessary to carry out this Act.

SEC. 502. COST-SHARING REQUIREMENT.

    The activities carried out under this Act shall be subject to the 
cost-sharing requirements of section 988 of the Energy Policy Act of 
2005 (42 U.S.C. 16352).

                                Purpose

    The purpose of S. 2843 is to provide for a program of 
research, development, demonstration, and commercial 
application in vehicle technologies at the Department of 
Energy.

                          Background and Need

    Over the last two decades, federal research priorities in 
vehicle technology have shifted between passenger and heavy 
duty vehicles, as well as diesel-hybrids, hydrogen-fueled, and 
battery-powered drive systems. The variation in priority and 
funding may be one reason for unsteady progress in advancing 
any one technology. This illustrates the need for a 
comprehensive strategy and consistent funding in a broad range 
of areas, from near-commercial technologies to exploratory 
research on a variety of systems, and across vehicle size 
classes. Striking the appropriate research balance and 
strengthening the federal commitment in this area is especially 
critical at a time when both the automotive and commercial 
trucking industries have limited resources for increasingly 
expensive research and development. S. 2843 lays out a 
comprehensive research, development, demonstration, and 
commercial application program, including many subprograms to 
support advancing U.S. competitiveness in advanced vehicle 
technologies.

                          Legislative History

    S. 2843 was introduced by Senator Stabenow on December 7, 
2009. The Subcommittee on Energy held a legislative hearing on 
the House companion bill, H.R. 3246, on December 8, 2009 (S. 
Hrg. 111-330). The Committee on Energy and Natural Resources 
considered S. 2843 and ordered it reported favorably with an 
amendment in the nature of a substitute on July 21, 2010.

            Committee Recommendation and Tabulation of Votes

    The Committee on Energy and Natural Resources, in an open 
business session on July 21, 2010, by a roll call vote of a 
quorum present, recommends that the Senate pass S. 2843, if 
amended as described herein.
    The rollcall vote on reporting the measure was 13 yeas, 10 
nays, as follows:
        YEAS                          NAYS
Mr. Bingaman                        Ms. Murkowski
Mr. Dorgan                          Mr. Burr
Mr. Wyden                           Mr. Barrasso
Mr. Johnson*                        Mr. Brownback
Ms. Landrieu*                       Mr. Risch
Ms. Cantwell*                       Mr. McCain*
Mr. Menendez*                       Mr. Bennett
Mrs. Lincoln*                       Mr. Bunning*
Mr. Sanders                         Mr. Sessions*
Mr. Bayh                            Mr. Corker*
Ms. Stabenow
Mr. Udall
Ms. Shaheen

    *Indicates vote by proxy.

                          Committee Amendment

    During its consideration of S. 2843, the Committee adopted 
an amendment in the nature of a substitute. The amendment adds 
a new title III, which extends and expands eligibility for the 
Advanced Technology Vehicles Manufacturing Incentive Program 
established under section 136 of the Energy Independence and 
Security Act of 2007, and a new title IV, which directs the 
Secretary of Energy to conduct a program of natural gas vehicle 
research, development, and demonstration, and directs the 
General Services Administration to conduct a study of the means 
by which the Federal government could increase the number of 
light, medium, and heavy-duty natural gas and liquefied 
petroleum gas vehicles in the fleet. In addition, the 
substitute amendment subjects activities carried out under the 
bill to the cost-sharing requirements of section 988 of the 
Energy Policy Act of 2005, and makes clear that the bill is 
intended to `` reform and re-orient'' the Department's existing 
vehicle programs. The amendment is explained in detail in the 
section-by-section analysis below.

                      Section-by-Section Analysis

    Section 1 provides a short title and table of contents.
    Section 2(a) states the findings and purpose of the 
legislation.
    Subsection (b) states the purposes of the legislation.
    Section 3 defines teams used in the legislation.

               TITLE I--VEHICLE RESEARCH AND DEVELOPMENT

    Section 101(a) directs the Secretary of Energy to conduct 
research, development, demonstration, and commercial 
application activities on advanced vehicle materials, 
technologies, and processes in the areas of: [hybridization and 
electrification; batteries and energy storage devices; power 
electronics; manufacturing technologies; engine efficiency and 
combustion; waste heat recovery; transmission and drivetrains; 
hydrogen technologies; aerodynamics, rolling resistance, and 
accessory power loads; weight reduction; friction and wear 
reduction; durability; innovative propulsion systems; 
compatibility with non-petroleum fuels; modeling and 
simulation; refueling and charging infrastructure; sensing and 
communications; rare earth and precious metals; aftertreatment; 
battery thermal management; common standards and 
specifications; and other areas as determined by the 
Secretary].
    Subsection (b) directs the Secretary to maintain programs 
to retain competency in mid-to-long term transformational 
vehicle technologies such as hydrogen, multiple battery 
chemistries, novel energy storage devices, vehicle 
connectivity, lightweight materials, and other areas as 
determined by the Secretary.
    Subsection (c) specifies that activities should be carried 
out in partnership or collaboration with a diverse set of non-
governmental, private and academic entities, including those 
which have not previously participated in government-sponsored 
research and development activities. The Secretary is required 
to leverage the resources of and support other organizations 
with expertise in vehicle technology development and develop 
streamlined technology transfer mechanisms. The Secretary 
should also seek to utilize existing or former manufacturing 
facilities, promote efforts to ensure technologies are produced 
in the U.S., and establish public-private partnerships for that 
purpose.
    Subsection (d) directs the Secretary to maximize 
coordination of activities between relevant Departmental 
programs and offices, and other federal agencies.
    Subsection (e) directs the Secretary to avoid duplication 
of activities of other programs within the Federal government 
to the maximum extent practicable.
    Subsection (f) directs the Secretary inform procurement 
programs of Federal agencies of the potential for demonstrating 
technologies funded by this Act.
    Subsection (g) directs the Secretary to support State and 
local government initiatives in advanced vehicle technologies, 
development, manufacturing, and infrastructure.
    Section 102 creates a research, development, demonstration, 
and commercial application program, carried out in coordination 
with the Secretary of Transportation, on sensing and 
communications technologies in vehicles and infrastructure that 
will facilitate reduced fuel use, optimized traffic flow, 
improved freight logistics, and vehicle electrification.
    Section 103 creates a research, development, demonstration, 
and commercial application program in manufacturing processes 
to produce advanced vehicle technologies and components.
    Section 104 authorizes the construction, expansion, or 
modification of user testing facilities for advanced vehicles 
and components.
    Section 105 specifies the content of required annual 
reports on the activities undertaken in programs authorized by 
this Act, including progress on domestic commercialization and 
the extent of industry participation.
    Section 106 establishes an innovative automotive 
demonstration program with awards to private entities that 
bring to market light duty vehicles of significantly better 
fuel efficiency than is contemplated by federal fuel economy 
standards.

                TITLE II--MEDIUM AND HEAVY DUTY VEHICLES

    Section 201(a) directs the Secretary to carry out a 
collaborative commercial and transit vehicle technology 
development program in partnership with a variety of industry 
and federal agency partners, including activities in the areas 
of: [engine efficiency; combustion; waste heat recovery; 
aerodynamics; rolling resistance; hybridization and 
electrification; drivetrains; friction and wear reduction; 
engine idle and parasitic energy loss; sensing and 
communications; lightweight materials; battery thermal 
management; recharging infrastructure; modeling and simulation; 
retrofitting of existing fleets with new technologies; and 
integration of multiple technologies onto a single platform].
    Subsection (b) directs the Secretary to appoint a full-time 
director for medium-to-heavy duty truck technology development 
programs, with responsibilities to include: improving 
coordination between agencies and program partners; convening 
of events for sharing information and research findings; 
developing a program budget and consulting on budget priorities 
across agency partners; determining a process for reviewing and 
revising program goals, targets and timetables; and, evaluating 
program activities and recommending modifications.
    Subsection (c) directs the Secretary to submit to Congress 
an annual report describing program activities, partners, and 
progress, and proposing a strategic plan for the interagency 
partnership.
    Section 202 creates a competitive grant program to 
demonstrate the integration of multiple advanced technologies 
on truck and trailer platforms that facilitate improved overall 
freight efficiency.
    Section 203 directs the Secretary, in coordination with 
interagency partners, to develop standard testing procedures 
and metrics that represent the unique task-specific operating 
conditions and duty cycles for heavy-duty vehicles, and 
authorizes the Secretary to construct heavy duty truck and bus 
testing facilities.
    Section 204 directs the Secretary to undertake a pilot 
program in technology development for non-road equipment (such 
as construction, agricultural, or industrial mobile equipment) 
and to seek opportunities to transfer relevant research 
findings between non-road and on-highway sectors.

TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM

    Section 301 amends section 136 of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17013).
    Paragraph (1)(A) amends section 136 to allow lending to 
manufacturers of medium or heavy duty trucks, buses, or rail 
transit vehicles when the Secretary determines that the 
deployment of such vehicles will result in a reduction in 
consumption of motor fuels of 25 percent compared to 
conventional technologies, or, in cases where such amount is 
deemed not achievable, a lesser but still substantial 
reduction.
    Paragraph (1)(B) clarifies that loans may be made for 
manufacturing process equipment for producing qualifying 
vehicles and components.
    Paragraph (1)(C) modifies the definition of ``qualifying 
components'' to clarify that components that are designed to 
improve the fuel economy performance of a qualifying vehicle 
and contribute measurably to the overall fuel economy of the 
vehicle qualify for lending, even if the component itself does 
not yield sufficient fuel economy gain for a given vehicle to 
qualify as an advanced technology vehicle.
    Paragraph (2) makes a conforming amendment.
    Paragraph (3) strikes the program's previously authorized 
lending cap of $25,000,000,000.
    Paragraph (4) makes a conforming amendment.
    Paragraph (5) extends the program's authorization date from 
2012 through 2015.

                     TITLE IV--NATURAL GAS VEHICLES

    Section 401(a) directs the Secretary to coordinate with the 
Administrator of the Environmental Protection Agency to conduct 
a natural gas vehicle research, development, and demonstration 
program.
    Subsection (b) specifies the purposes of the program 
[including the development of more efficient natural gas and 
vehicles engines; the integration of those engines in off and 
on road vehicles; assisting manufacturers in the certification 
of both the engines and vehicles as compliant with state and 
federal emissions requirements, including demonstration of 
proper use; the development of nationally recognized codes 
relating to safe operation of natural gas engines and vehicles; 
the improvement of both reliability and safety of natural gas 
fueling stations and onboard storage systems; and the use of 
natural gas engines in hybrid vehicles].
    Subsection (c) directs the Secretary to work with the 
Administrator to streamline the certification system for 
natural gas aftermarket conversion systems and ensure their 
compliance with Federal standards.
    Subsection (d) directs the Secretary to coordinate with the 
natural gas vehicle industry while developing and carrying out 
the program.
    Subsection (e) directs the program created by this section 
to be conducted in accordance with sections 3001 and 3002 of 
the Energy Policy Act of 1992 (42 U.S.C. 13541,13542).
    Subsection (f) directs the Secretary to submit a report on 
the implementation of the program to the appropriate 
Congressional committees not later than 2 years after 
enactment.
    Subsection (g) authorizes the appropriation of $30,000,000 
for each of fiscal years 2011 through 2015 to be used by the 
Secretary to carry out the program.
    Section 402(a) directs the Administrator of General 
Services, in consultation with the Secretary of Energy and the 
Administrator of the Environmental Protection Agency, to 
conduct a study on increasing the number of natural gas and 
liquefied petroleum gas vehicles in the federal fleet.
    Subsection (b) directs that the study include consideration 
of Executive Order 13514 (74 Fed. Reg. 52117), which requires 
federal fleet petroleum use to be reduced by 30 percent by 
2020, and also assess the various barriers, feasibility, as 
well as environmental and cost benefits of increased use of 
such vehicles.
    Subsection (c) directs the Administrator of General 
Services to submit the report not later than 180 days after the 
date of enactment to the appropriate Congressional committees.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

    Section 501 authorizes the Secretary to appropriate the 
necessary sums to carry out this Act.
    Section 502 subjects activities carried out under S. 2843 
to the cost-sharing requirements covered under section 988 of 
the Energy Policy Act of 2005 (42 U.S.C. 16352).

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

S. 2843--Advanced Vehicle Technology Act of 2010

    Summary: S. 2843 would direct the Secretary of Energy to 
expand existing activities aimed at developing alternative 
vehicles with the potential to significantly reduce or 
eliminate petroleum use and carbon emissions. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing S. 2843 would cost about $1.5 billion over the 
2011-2015 period. Enacting S. 2843 would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    S. 2843 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2843 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2011    2012    2013    2014    2015   2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level................................     425     428     435     444     454      2,186
Estimated Outlays............................................     130     259     320     362     399      1,470
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 2843 would direct the Secretary of 
Energy to carry out, in collaboration with vehicle 
manufacturers and other nonfederal entities, activities to 
promote the development of vehicles with the potential to 
significantly reduce petroleum use and carbon emissions. The 
bill would authorize the appropriation of whatever amounts are 
necessary to expand existing research and development 
activities of the Department of Energy (DOE) related to 
alternative vehicles. In addition, the bill would require the 
agency to establish new initiatives, particularly related to 
medium- and heavy-duty and transit vehicles.
    S. 2843 does not specify particular targets or goals for 
DOE to achieve related to alternative vehicles. Research and 
development activities inherently involve trial and error, and 
the pace of incremental progress is directly related to the 
variety of experiments attempted and other factors. For this 
estimate, CBO assumes that the agency would increase its level 
of effort by expanding existing programs, launching new 
initiatives, and increasing the number of technologies tested 
in order to achieve appreciable progress in research areas 
addressed by S. 2843. Based on information from the agency, CBO 
estimates that realizing recognizable gains from such efforts 
would require additional appropriations of $425 million in 
2011. (According to DOE, funding for activities addressed by 
the bill totaled about $300 million in 2010.) That estimate for 
2011 includes:
           $200 million to expand general research and 
        development efforts related to alternative passenger 
        and light-duty commercial vehicles;
           $130 million to expand and establish 
        research and development related to alternative medium- 
        and heavy-duty commercial vehicles and transit 
        vehicles;
           $40 million to improve the energy efficiency 
        of manufacturing processes related to alternative 
        vehicles;
           $30 million to expand programs to develop 
        vehicle sensing and communication technologies;
           $15 million for vehicle testing facilities; 
        and
           $10 million for various other activities and 
        reports.
    Assuming that future annual appropriations would remain at 
that 2011 level, adjusted for anticipated inflation, CBO 
estimates that fully funding S. 2843 would require additional 
appropriations totaling $2.2 billion over the 2011-2015 period. 
(According to DOE, that amount is equivalent to the total 
amount of funding for activities related to alternative 
vehicles that has been provided over the past 10 years.) 
Resulting outlays over that period would total about $1.5 
billion, with $0.7 billion of additional spending occurring in 
later years. CBO expects DOE would use those amounts to fund a 
wider variety of research activities aimed at achieving 
technical milestones. CBO estimates that significantly 
accelerating the time frame in which new technologies could 
become market ready would require even larger increases in 
funding.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 2843 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2843.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional regulatory paperwork would 
result from the enactment of S. 2843, as ordered reported.

                   Congressionally Directed Spending

    S. 2843, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy at the 
December 8, 2009, Subcommittee hearing on H.R. 3246, the House 
companion bill to S. 2843, follows:

 Statement of Dr. Kristina M. Johnson, Under Secretary, Department of 
                                 Energy

    Madam Chairman, Ranking Member Risch, and Members of the 
Subcommittee, thank you for the opportunity to appear before 
you today to discuss several draft energy bills. We deeply 
appreciate your interest in the views of the Department of 
Energy (The Department) on these bills. Over many years and 
many Administrations, the Department has enjoyed an open and 
productive relationship with this Committee, and those of us 
serving under President Obama certainly want to continue and 
strengthen that partnership.
    In recent years, Congress has made a very substantial and 
positive investment in clean energy through the enactment of 
the Energy Policy Act of 2005 (P.L. 109-58), the Energy 
Independence and Security Act of 2007 (EISA)(P.L. 110-140), and 
the clean energy portions of the American Recovery and 
Reinvestment Act (P.L. 111-5).
    This year, the Committee has proposed further investment 
and we thank you for all your hard work in reporting the 
American Clean Energy Leadership Act (S. 1462). As President 
Obama said while dedicating a new solar plant in Central 
Florida, ``At this moment, there is something big happening in 
America when it comes to creating a clean energy economy. * * * 
And I have often said that the creation of such an economy is 
going to require nothing less than the sustained effort of an 
entire nation--an all-hands-on-deck approach similar to the 
mobilization that preceded World War II or the Apollo 
Project.''\1\
---------------------------------------------------------------------------
    \1\From ``Remarks by the President on Recovery Act Funding for 
Smart Grid Technology,'' Press release. October 27, 2009. http://
www.whitehouse.govithe-press-office/remarks-president-recovery-act-
funding-smart-grid-technology.
---------------------------------------------------------------------------
    The American Recovery and Reinvestment Act 2009 (The 
Recovery Act) alone provided the Department with $36.7B in 
appropriations--$32.7 billion in grant and contract authority, 
$4 billion in credit subsidy for loan guarantees, plus $6.5 
billion in borrowing authority for the Power Marketing 
Administrations. These funds will support some $100 billion in 
clean energy and environmental clean up projects when leverage 
and cost share are included, creating hundreds of thousands of 
jobs and providing a meaningful down payment on the nation's 
energy and environmental future.\2\
---------------------------------------------------------------------------
    \2\The Department has been funded at $36.7 billion in Recovery Act 
dollars, after $2 billion of the original $38.7 billion was redirected 
to the Cash for Clunkers program.
---------------------------------------------------------------------------
    For this hearing, I would like to offer the Department's 
views on nine proposed bills, as the Subcommittee has asked. 
These bills are: H.R. 957, H.R. 2729, H.R. 3165, H.R. 3236, 
H.R. 3585, S. 737, S. 1617, S. 2773, and S. 2744. I will 
address each bill in order of introduction starting with the 
House bills, except the two wind bills, which I will address 
together.

                  h.r. 957--green energy education act

    Background.--A cornerstone of The Department's mission is 
to create an energy-literate generation of skilled workers, 
scientists, and innovators who can accelerate the transition to 
a clean energy economy and ensure U.S. global competitiveness. 
The Administration is deeply committed to promoting the 
creation of green jobs.
    While the Department appreciates H.R. 957's focus on 
building technologies, we would like to impress upon the 
Committee that a general workforce deficiency is growing across 
the energy sector. The rapid deployment of new energy 
technologies, coupled with the fact that 40 to 60 percent of 
energy utilities' skilled workers and engineers are eligible to 
retire by 2012\3\ reinforces the need for a broad approach to 
address the green job development and training challenge.
---------------------------------------------------------------------------
    \3\Center for Energy Workforce Demand 2007 Report: Gaps in Energy 
Workforce Pipeline.
---------------------------------------------------------------------------
    To this end, the Department works closely with the National 
Science Foundation (NSF) in a number of areas to strengthen 
scientific educational programs at the technical, 
undergraduate, and graduate levels. These projects are aimed at 
creating a pipeline beginning at the K-12 level and extending 
through the post-graduate level to ensure the ongoing 
development of a workforce with the skills and capabilities to 
create and scale-up innovative energy technologies and improve 
processes over the long-term. Further, the Department is 
already closely coordinating with NSF on education, green jobs 
training, and workforce development. The Department recognizes 
the importance of leveraging NSF resources, and is already 
taking proactive steps to solidify a stronger working 
relationship with our colleagues.
    H.R. 957 would facilitate stronger collaboration between 
the Department and the National Science Foundation. As written, 
the legislation would authorize The Department to fund NSF's 
flagship interdisciplinary training program (IGERT) to educate 
architects and engineers to collaborate on high performance 
building technologies and practices.
    H.R. 957 assigns priority funding for applications 
encouraging partnerships between architectural and engineering 
schools. These fields are inextricably intertwined, and can 
advance energy efficiency in the design and construction of 
high performance buildings.
    By supporting multidisciplinary graduate education and 
curriculum development activities, H.R. 957 will advance the 
Department's broad energy technology development mission. The 
bill recognizes the need to produce the next generation of 
engineers and architects who can work together from design 
concept to building operation to integrate energy efficiency 
and renewable energy more fully into the clean, competitive 
economy of the future.
    We would note here that the Department is already 
undertaking efforts in creating or funding green job training 
programs through existing authorities.
    Through the Recovery Act, the Department is funding 
approximately $140 million in training and technical assistance 
to develop standardized training curricula for residential 
energy workers, expand the number of weatherization training 
centers, and to create a national weatherization worker 
certification framework.
    To serve the commercial building sector, the Department's 
Building Technologies Program has issued a Funding Opportunity 
Announcement (FOA) to support the development of training 
programs for building technicians, operators, energy auditors, 
and others responsible for building and operating high 
performance commercial buildings. These programs offer an 
opportunity to demonstrate how partnerships with the Department 
of Labor's public workforce system, labor management 
partnerships, education institutions such as community 
colleges, and community organizations can meet the workforce 
needs of the commercial building sector. The Department of 
Energy estimates that approximately $7.5 million will be 
available for multiple awards under this FOA.
    Utilities, colleges, universities, labor organizations, and 
trade associations, will be able to apply for over $100 million 
in grants issued through a FOA to improve smart grid technology 
education and implementation, as well as funding programs and 
curricula to train or retrain workers in the electric power 
sector.
    Recommendations.--The Department is committed to achieving 
effective legislation to train and educate the new energy 
economy work force. The Department backs a coordinated, 
interagency approach and a balanced investment in education and 
training opportunities from kindergarten to adult job training, 
beyond just buildings. Although a good start, H.R. 957 could be 
improved to more fully address the larger issue of energy 
education, green jobs creation, and workforce training. I look 
forward to working with the Committee to strengthen this 
legislation.

            h.r. 2729--national environmental research parks

    Background.--The Department's predecessor, the Atomic 
Energy Commission, established the first environmental research 
park in 1972 at the Savannah River Site in South Carolina in 
response to recommendations from the scientific community, 
other Federal agencies, and Congress. Between 1972 and 1992 six 
additional research parks were designated on The Department 
sites.
    The research parks, located on Department-owned land, 
represent six major eco-regions across the U.S. and provide 
research opportunities on natural ecosystems as well as on the 
environmental transport, cycling, and fate of radionuclides and 
other contaminants resulting from nuclear weapon development 
and testing. While the Department-sponsored researchers utilize 
the research parks to conduct high-priority mission relevant 
research, research park use is dominated by researchers 
sponsored by other Federal agencies including the National 
Science Foundation, the Department of Agriculture, Geological 
Survey, and the Department of Defense. This is due in large 
part to the attractiveness of these areas for general 
ecological-type research beyond the scope of the Department. 
Currently, stewardship of each research park is the 
responsibility of its respective laboratory management and 
operating contractor, with oversight by the managing Department 
program office.
    H.R. 2729 formally institutionalizes existing research 
parks by directing the Secretary to designate six National 
Environmental Research Parks as protected outdoor research 
reserves for the purposes of conducting long-term environmental 
research on the impacts of human activities on the natural 
environment.
    The bill authorizes $30 million annually--$5 million for 
each of the National Environmental Research Parks--for the 
Department's Office of Science to carry out eco-research and 
education activities.
    As a threshold matter, much of the research contemplated by 
this bill is already being performed. This legislation may also 
have a few unintended consequences.
     Any official designation of park lands as 
``protected sites'' could impede the parks'' future use for 
mission priority activities and could restrict the Department's 
current authority at the proposed sites.
     While the research parks are well-suited for 
conducting the research proposed by the bill, much of this 
research is outside the scope of the Department's mission and 
core competencies. An example would be H.R. 2729's proposed 
research regarding the general ecology of the site and region 
in addition to population biology and ecology. Such research 
should continue to be supported by other, more appropriate 
Federal agencies.
    Recommendations.--The Department recognizes that the 
current environmental research parks will continue to be a 
valuable resource for the overall scientific community, and we 
believe the current support arrangement is working well. As 
such, current Departmental activities and authorizations are 
sufficient.

                                  wind

    The Department's Wind Program leads the Nation's efforts to 
address the barriers to the acceleration of large-scale 
deployment of land-based and offshore wind energy.
    The Department's 2008 report, 20% Wind Energy by 2030, 
outlines an aggressive scenario in which the U.S. could 
generate 20% of its electricity by 2030, and it also identifies 
the technical and non-technical barriers that must be overcome 
in order to achieve this. The Department's Wind and Hydropower 
Technologies Program is currently funding research to address 
the challenges identified by the report, which include reducing 
wind turbine capital costs by improving reliability, 
integrating wind energy into the power grid, addressing 
environmental and siting concerns, and building the domestic 
wind manufacturing industry.
    The Department is working to improve reliability of wind 
technology, by, among other things, reducing blade and gearbox 
failures. These failures present one of the greatest challenges 
to wind technology, as they require costly repairs and reduce 
investor confidence. To reduce the risk facing new turbine 
technologies, the Department is funding the creation of 
facilities that will help industry develop the next generation 
of large wind turbine designs. For example, a new $45 million 
large wind turbine drivetrain testing facility, and a new $25 
million large blade test facility capable of testing 90 meter 
blades have been recently awarded under Recovery Act funding.
    To overcome wind energy integration challenges, the 
Department is developing tools and strategies, such as wind 
forecasting techniques, which will improve the integration of 
wind energy with the electrical grid. The Department is funding 
two state-of-the-art high penetration wind integration studies, 
the Eastern Wind Integration and Transmission Study and the 
Western Wind and Solar Integration Study that evaluates the 
impact of integrating up to 30% wind energy into the U.S bulk 
power system.
    To address the environmental and siting challenges, the 
Department funds projects that seek to understand and mitigate 
the impacts of wind energy development on wildlife. For 
example, the Department funds work at Texas Tech University and 
Kansas State University to assess the environmental impacts of 
wind energy on species of grassland birds. Habitat impacts on 
grassland species are a particular concern because extensive 
wind energy development could take place in grassy regions of 
the country. Three other projects funded by the Department will 
focus on developing tools to assess habitat risks when siting 
wind energy projects. Jones & Stokes Associates, Inc., The 
Nature Conservancy, and Pandion Systems, Inc. will each work to 
develop scalable, spatially-explicit tools to calculate 
potential environmental impacts from wind deployment. The 
Department also provides local and state governments with 
resources to help them make informed decisions about wind power 
in their communities.
    To build the domestic wind manufacturing industry, the 
Department works with companies to develop innovative 
manufacturing processes and to develop a qualified wind 
workforce. For example, the Department is funding PPG 
Industries in Shelby, NC to improve wind turbine blade 
manufacturing processes in partnership with MAG-Industrial 
Automated Systems in Hebron, KY. Current blade fabrication 
technology is labor-intensive and prone to variability, 
resulting in incidences of manufacturing defects.\4\ The PPG 
research will develop an automated fabrication methodology to 
deliver precise control of fiberglass preimpregnated material 
placement. This effort will reduce blade-to-blade variability, 
lower incidences of premature failure, reduce cost of wind 
energy, and potentially increase blade manufacturing capability 
by as much as 100% when fully implemented by a manufacturer. To 
ensure an adequate wind workforce, the Department is funding a 
project with Southwest Applied Technology College in Cedar 
City, Utah, to provide students with practical and applied wind 
energy training. The school will target skilled unemployed 
workers and minority populations, especially Hispanic and 
Native Americans.
---------------------------------------------------------------------------
    \4\Wetzel, Kyle K. ``Defect-Tolerant Structural Design of Wind 
Turbine Blades,'' American Institute of Aeronautics and Astronautics, 
Inc., 2009-2409.
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    The Department's National Wind Technology Center (NWTC) in 
Boulder, Colorado is recognized internationally as a leading 
wind energy research and development facility. The NWTC has 
advanced wind turbine testing capabilities and provides an 
ideal site for testing turbines under extreme conditions; the 
NWTC experiences strong wind directionality and gusts up to 85 
miles per hour at wind turbine hub height. This year, the NWTC 
installed a 1.5 MW wind turbine, the first utility-scale 
turbine to be owned by the Department, as well as a 2.3 MW 
turbine operated in partnership with industry. These turbines 
are fully instrumented to act as test platforms for future R&D 
to further improve the reliability and performance of wind 
turbine components and to reduce the cost of wind energy. For 
example, load data from the foundations of these two research 
turbines will be used to help codify a national standard for 
permitting requirements of utility scale wind turbines. A 
uniform permitting standard would provide a significant 
improvement to the current patchwork regulatory schemes imposed 
on wind developers.

      h.r. 3165--wind energy research and development act of 2009

    Background.--This legislation authorizes $200 million 
annually through 2014 for a cumulative investment of $1 billion 
dollars. H.R. 3165 authorizes the Department to carry out a 
wind R&D program to improve the energy efficiency, reliability, 
and capacity of wind turbines through new materials and 
technologies, optimize the design and adaptability of wind 
energy systems, and reduce the cost of construction, 
generation, and maintenance of wind energy systems. Finally, 
the bill requires the Department to fund merit-reviewed, cost-
shared demonstration projects conducted in collaboration with 
industry.
    The Department currently has $80 million in appropriated 
funding for FY 2010 to pursue RD&D of wind energy technologies. 
The activities authorized in H.R. 3165 are largely consistent 
with much of the work currently underway at the Department, and 
with the Department's 20% Wind Energy by 2030 report, which 
identified the barriers and pathways for supplying 20 percent 
of the Nation's electricity from wind energy by 2030. Using 
ARPA-E funding, the Department has been able to finance 
breakthrough wind technologies, High Efficiency Shrouded Wind 
Turbine, FloDesign (Wilbraham, MA)\5\ and Adaptive Turbine 
Blades: Blown Wing Technology for Low-Cost Wind Power, PAX 
Streamline Inc. (San Rafael, CA)\6\ which are consistent with 
the wind program's goals.
---------------------------------------------------------------------------
    \5\FloDesign Wind Turbine Corporation (Wilbraham. MA) will develop 
a new shrouded, axial-Bow wind turbine known as the Mixer Ejector Wind 
Turbine (MEWT), which is capable of delivering significantly more 
energy per unit swept area with greatly reduced rotor loading as 
compared to existing horizontal 115 is wind turbines (FIAWT). 
Prototypes will be built and tested, demonstrating the advantages of 
lightweight materials and a protective shroud that will reduce noise 
and safety concerns and accelerate distributed wind applications.
    \6\PAX Streamline. Inc (San Rafael, CA), along with Georgia Tech 
Research Institute, will load a project to adapt Blown Wing technology 
far wind turbines, culminating in a 100 kW prototype. Circulation 
control technology or ``Blown Wing'' technology creates a virtual 
airfoil by jetting compressed air out a orifices along a wing and has 
the potential to radically simplify the manufacture (old operation of 
wind turbines. Unlike a fixed tinfoil, a Blown Wing can be dynamically 
adjusted to maximize power under a wide range of wind conditions, and 
can he generated from a slotted extruded pipe that can be domestically 
manufactured at a fraction of the cost.
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    H.R. 3165 recognizes the need to resolve the impacts of 
wind turbines on federal radar assets. These radars are used to 
ensure aviation safety, support homeland security, protect 
military assets, and enable timely weather warnings for public 
safety. The Administration realizes this is a critical 
unresolved issue.
    Recommendations.--The Department would like to work with 
Congress to tighten Section 3's proposed demonstration program 
to reflect the development status and needs of the wind 
industry. We urge the Committee to consider placing special 
emphasis on the demonstration of innovative offshore wind 
technologies, including integrated systems, components, 
structures, materials and infrastructure. Domestic, pre-
commercial, leading edge technologies remain the most 
appropriate investment for a robust demonstration program. The 
U.S. has yet to install a single offshore wind turbine while 
Europe has over 1500 MW installed and a target of 40,000 MW by 
2020. Investment by the U.S. government is critical for 
development of a domestic industry. There are numerous offshore 
wind projects proposed in the Great Lakes, such as the Cuyahoga 
County Project in Lake Erie, and numerous projects in the 
Northeast that should be supplied by U.S. manufacturers.
    The Department asks that the legislation include a specific 
authorization for environmental research. One set of persistent 
issues facing the wind industry are the environmental impacts 
associated with wind power facilities. Project developers must 
not only finance, construct, and maintain wind farms, but must 
also consider the effects of wind energy systems on the 
surrounding environment. As written, researching the impact of 
turbines on wildlife and natural habitats could be funded under 
the Section 12(b)(12) ``catch-all'' provision of this bill that 
enables the Secretary to determine if the Department should 
perform research in addition to the prescribed areas. However, 
given the significance of environmental issues associated with 
wind energy systems deployment, the Department would like to 
see a greater emphasis on addressing this important area of 
research in collaboration with other responsible federal 
agencies.
    The Department is currently funding efforts to evaluate the 
possible benefits of certain energy storage technologies to 
assist with wind integration. Areas of study include how the 
suite of power system flexibility options (including energy 
storage) can best be utilized to address wind variability 
issues; evaluation of the use of hydropower to assist with wind 
integration; and the study of how storage technologies can be 
integrated into wind power components to extend equipment 
operating life.\7\
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    \7\DOE is currently funding energy storage research through the 
Office of Electricity Delivery and Energy Reliability (OE), and pumped-
storage hydropower research and development through the Office of 
Energy Efficiency and Renewable Energy's Wind and Hydropower 
Technologies Program. The Wind Program works with these parties to 
coordinate and collaborate, but feels that continuing to fund these 
activities under the offices that are already working on storage makes 
more sense than creating separate storage activities in the Wind R&D 
bill.
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s. 2773--offshore wind energy research, development, demonstration, and 
                   commercial application act of 2009

    Background.--Only very recently has the U.S. government 
invested significantly in offshore wind technology research and 
development, and consequently, no domestic offshore wind 
systems or manufacturing base exist for the sector. In FY 2009 
and FY 2010 the Federal Government began investing in offshore 
wind technologies, including an $8 million Recovery Act funded 
consortia led by the University of Maine that will deploy two 
floating offshore turbine prototypes and conduct research to 
optimize the design of floating platforms, while also providing 
wind energy career educational opportunities for university 
students.
    S. 2773 authorizes $50 million annually from FY 2011 
through FY 2021, for a cumulative investment of $500 million. 
S. 2773 requires the Department to carry out a comprehensive 
program of research, demonstration, and development of 
commercial applications for offshore wind energy to improve the 
efficiency, reliability, and capacity of offshore wind energy 
systems, at all water depths, while reducing costs throughout 
the supply chain.
    Further, the legislation supports offshore wind resource 
assessment work, while considering the technologies' 
environmental impacts, benefits, and mitigation techniques for 
marine ecosystems and industry. This research would also 
address the unique challenges to generating energy offshore, 
including siting and permitting issues, exclusion zones, and 
transmission needs.
    S. 2773 also authorizes the Department to award grants to 
institutions of higher education to establish one or more 
national offshore wind centers that meet specified requirements 
to focus on deepwater offshore floating wind energy 
technologies.
    S. 2773's authorization levels and timeframe appear 
consistent with prior Departmental and industry assessments 
necessary to deploy a national offshore R&D program focused on 
lowering deployment costs, ensuring high technical reliability, 
facilitating economic revitalization of U.S. port facilities, 
and mitigating environmental impacts.
    Recommendations.--The Department estimates that only one-
third of the cost of an installed offshore wind energy facility 
is represented by the wind turbine itself. Therefore, lowering 
the cost of offshore wind requires additional focus on 
electrical grids, project operation and maintenance, and 
installation and staging costs. The bill's authorization 
language should include research aimed at optimizing 
installation methodology, electrical transmission design, 
operations and maintenance practices, installation vessel 
design, and manufacturing and assembly. With no offshore wind 
turbines currently deployed in U.S. waters, this type of 
government support will be integral to accelerating early-stage 
offshore wind development.
    While the Department supports the establishment of a 
comprehensive national R&D program for offshore wind, Section 4 
of the bill authorizing a national offshore wind energy 
center\8\ [emphasis added] is overly prescriptive and 
duplicative of the Department's recently announced deepwater 
offshore wind R&D award to a consortium led by the University 
of Maine. Three examples of S. 2773's language can illustrate 
why such a prescriptive approach may overlook opportunities for 
offshore wind. First, Section 4(b)(4) requires each ``center'' 
to have access to the Atlantic Ocean, the Gulf of Mexico, or 
the Pacific Ocean. This language precludes the Department from 
funding a center on the Great Lakes, which have significant 
offshore wind energy potential and have begun to attract 
investment from developers, such as the Cuyahoga County Project 
in Lake Erie. Second, although R&D on offshore wind in shallow 
and transitional depths is authorized by the bill, the national 
center created by the bill is restricted to only deepwater 
offshore wind systems. This legislative treatment favors one 
offshore technology over the R&D needs of shallow and 
transitional depth waters, with little policy or technical 
justification. Finally, Section 4's language requiring that 
universities be designated as lead institutions may prove to be 
an unnecessary constraint on otherwise qualified consortia 
applying to establish offshore wind centers.
---------------------------------------------------------------------------
    \8\In short, the Wind Program supports the R&D section of the bill, 
but does not feel that it is appropriate to designate a national center 
at this time because the technology is new and committing to fund one 
or a small number of centers may ``lock in'' the technology development 
to the specific attributes of that location e.g. local technology 
expertise, physical attributes such as water depth of the nearest site 
for offshore development, turbine designs optimized for the wind speeds 
at that particular location, etc.
---------------------------------------------------------------------------
    The Department supports establishing a comprehensive 
National Offshore Wind Energy R&D Program as contemplated by S. 
2773 in which multiple research, development, and demonstration 
projects play a critical role. Such projects should be 
established through grants awarded on a competitive basis.

          h.r. 3246--advanced vehicles technology act of 2009

    Background.--Department-funded research has contributed 
heavily to the advancement of vehicle technologies. The 
advanced vehicle technologies in the Department's research 
portfolio can significantly reduce petroleum consumption, 
thereby strengthening our national energy security through both 
fuel substitution and energy efficiency. For example, plug-in 
hybrid electric vehicles with a 40-mile electric range using 
cellulosic E85 have the potential to reduce petroleum 
consumption by as much as 85% compared to conventional 
gasoline-powered internal combustion engine vehicles.\9\ The 
Department is not only developing the technologies to make 
vehicles more energy efficient, but is also considering the 
full life cycle impact of cars on the environment. For example, 
the Department research produced a 40 percent weight savings on 
a per-part basis for a mid-sized automobile with the 
development of quick plastic forming aluminum. We have also 
developed technology to reduce commercial vehicles' engine 
cradle (structural element that supports the engine) weight by 
65-70 percent using magnesium. Currently, the Department is 
involved in the commercialization of a process that can salvage 
nearly all of the plastic in a vehicle (approximately 10% of 
the average vehicle's weight), not only preventing landfill 
waste but also displacing oil and natural gas and reducing the 
cost of plastics through recycling.
---------------------------------------------------------------------------
    \9\Argonne National Laboratory Greenhouse Gases, Regulated 
Emissions, and Energy Use in Transportation (GREET) Model. Emissions 
associated with direct and indirect land-use change are not considered 
in this analysis.
---------------------------------------------------------------------------
    Other examples of technologies developed by the Department 
and being used by Industry include:
    Every U.S. hybrid vehicle sold has intellectual property 
from the Department's Nickel Metal Hydride battery research, 
and Chrysler plans to begin production on a Cummins engine 
incorporating the Department's technologies which make its 
internal combustion engine operate cleaner and more 
efficiently. Lastly, collaborating with New Flyer, the 
Department co-developed the technology for hybrid transit 
buses, technology which has migrated to other applications such 
as light trucks and crossover vehicles.
    The Department supports H.R. 3246, as the current Vehicle 
Technologies Program funding authorization expires at the end 
of FY 2010. We believe the bill generally covers an appropriate 
technology portfolio, includes well-placed interest in heavy-
duty vehicles, and is well aligned with prior year Program 
budgets.
    Recommendations.--The Department agrees with the suite of 
technologies authorized in H.R. 3246. However, the inclusion of 
hydrogen and fuel cell activities in H.R. 3246 would result in 
duplicative authorizations and potential budgetary issues. 
Currently, Title VIII of the Energy Policy Act of 2005 (EPAct 
2005) serves as the authorizing language for the Department's 
hydrogen and fuel cell activities, and does not sunset until FY 
2020. It is likely that hydrogen and fuel cell activities were 
included in H.R. 3246's activity list only because several 
hydrogen activities were included in the Vehicle Technologies 
FY 2009 appropriation. However, these activities were moved 
back to the Fuel Cell Program for FY 2010, and are no longer 
part of Vehicle Technologies.
    Therefore, the Department respectfully requests to continue 
to rely on EPAct 2005's authorizations for the Department's 
Fuel Cell Program activities. The EPAct 2005 authorizing 
language provides sufficient authorization for current DOE 
activities, and removing H.R. 3246's hydrogen and fuel cell 
reference would avoid any unintended complications that can 
result from duplicative authorizations.
    H.R. 3246 would enable the Department to build on the 
Department's continuing efforts to improve existing vehicle 
technologies, as well as emphasizing other modes of 
transportation to significantly reduce passenger and commercial 
vehicle miles traveled. We look forward to working with the 
Committee and the Congress on this important legislation.

                h.r. 3585--solar technology roadmap act

    Background.--The goal of the Department's present Solar 
Energy Technologies Program is to make solar energy 
technologies cost-competitive with conventional grid 
electricity by 2015 and to enable a high penetration of solar 
generation energy within the U.S. This goal drives a number of 
projects and initiatives relating to photovoltaic (PV) and 
concentrating solar power (CSP) technologies and requires 
examination of critical issues relating to grid integration and 
the transformation of markets for solar technologies.
    We appreciate the strong Congressional support shown for 
solar technology development. The Recovery Act provides $118 
million for solar initiatives. In October, the Advanced 
Research Projects Administration--Energy (ARPA-E) announced 
approximately $17.7 million\10\ in solar grants, and Congress 
recently appropriated $225 million in FY 2010 for the 
Department's Solar Program. This funding enables the Department 
to make prudent investments in applied research to further 
reduce the costs of solar technologies. I'd like to highlight a 
few of the R&D efforts currently underway at the Department:
---------------------------------------------------------------------------
    \10\http://arpa-e.energy.gov/news.html.
---------------------------------------------------------------------------
    Innovations arising from Department-funded R&D in the areas 
of thin-film solar cells, high-efficiency single-crystal solar 
cells, and very high efficiency gallium arsenide solar cells 
have since been commercialized by companies such as First Solar 
in Ohio, Sunpower in California, and Boeing/Spectrolab, also in 
California. In August 2009, the Department announced over $37 
million\11\ of awards for early-stage company investments--
including those made through the Small Business Innovative 
Research program--and $14 million in investment through the 
national laboratories. This includes $5 million invested in CSP 
technologies. We are currently working on the next generation 
of solar technologies including kerfless wafering and 
atmospheric thin film processing, which can lead to broader 
market impact, lower manufacturing cost, and increased 
conversion efficiency.
---------------------------------------------------------------------------
    \11\http://www.energy.gov/news2009/7824.htm.
---------------------------------------------------------------------------
    The Department is also investing in balance-of-systems 
(BOS) technologies, the most significant cost barrier for PV. 
BOS technologies are necessary to support full solar 
electricity generation systems, but are separate from, for 
example, the actual PV panel. BOS costs include items like 
inverters that allow connection with the electric grid; they 
can account for as much as half the total installed cost of a 
solar electricity generation system, and so create substantial 
barriers to lowering the cost of solar energy. As an example of 
the Department's commitment in this area, the Department 
recently announced awards for up to $11.8 million to five 
companies to develop new inverter technologies under our Solar 
Energy Grid Integration Systems program. Overall, we invested 
approximately $122 million in this area in 2009, including $16 
million in CSP technologies. Some of these funds are going 
toward development of inverters with advanced nano-material 
transformers that provide lighter weight, longer life, and 
lower cost as well as advanced residential control systems that 
can effectively manage PV panels along with other household 
renewable and conventional power systems to maximize time-of-
day energy use.
    The Department is increasing its investment in large-scale 
demonstrations of integrated photovoltaics and CSP systems. As 
part of funding received through the Recovery Act, the 
Department recently announced $37.5 million in high-penetration 
solar deployment projects. Carried out by universities, and 
utilities, with national laboratory partners to assess the 
technologies, these projects seek to assess the impacts of high 
levels of solar-energy penetration on the electric grid. 
Investigations will include both voltage and frequency behavior 
of the distribution and transmission feeder portions of the 
grid in the presence of clear and intermittent solar 
conditions. This information is important to defining a path 
for 10% or greater penetration levels of solar in the grid and 
also in defining the requirements for grid energy storage use.
    H.R. 3585, the Solar Technology Roadmap Act, as currently 
drafted, significantly alters the form and function of the 
Department's solar energy RD&D. We would like to draw the 
Committee's attention to concerns we have with the consequences 
of this alteration. First, the bill in effect changes the 
governance of the Department's Solar Program. Second, it 
changes the emphasis of the Program from cost effectiveness of 
technology to instead following a prescribed mix of solar 
demonstration projects.
    H.R. 3585 provides the Department an authorization level of 
$350 million in FY 2011, rising in $50 million increments to 
$550 million in FY 2015. The aggregate authorization would 
total $2.25 billion over four years, far exceeding any previous 
authorization levels.
    We note, however, that H.R. 3585 would supplant previous 
authorities except for two provisions of the Energy 
Independence and Security Act of 2007 (EISA). It would become 
the de facto authorizing language for the Department's solar 
activities.
    Our first and greatest concern is that Sections 103 and 108 
of the bill require the Department to form a semi-autonomous 
Committee that will largely govern the solar-energy activities 
at the Department. The proposed committee would be charged with 
producing a comprehensive analysis of recommendations for 
investing Federal RD&D dollars over near-, mid-, and long-term 
horizons based on current issues and barriers facing the 
industry. As written, the proposed legislation binds the 
Department's R&D efforts to the recommendations of the Roadmap 
Committee, requiring the Department to follow the Committee's 
recommendations for 75 percent of all appropriations by 2015. 
We urge the Congress instead to stipulate that the Committee 
would provide the kinds of non-binding advice and 
recommendations traditionally provided by publicly-chartered 
Federal advisory committees.
    Our second concern is that Section 105 specifies a solar-
technology demonstration plan that may not embody the most 
appropriate scale of projects encompassing the most effective 
mix of technologies, as might be determined by the Secretary.
    As written, the proposed legislation prescribes a 
particular schedule of future solar demonstration projects, 
specified both with regard to project scale and with regard to 
technology mix. These particular project sizes and technology 
mixes may not provide the largest benefit to the Nation under 
future conditions which we are not likely to be able to foresee 
with any clarity.
    While the Department welcomes the support that the proposed 
legislation would provide to solar research and development, 
the Department is concerned that the legislation as written may 
not maximize public benefits.
    The existing Solar Program actively solicits and receives 
input from stakeholders in industry, the national laboratories, 
and academia, through its use of peer-review as well as from 
other formal and informal discussions over many years. For 
example, as part of an effort to develop a PV Manufacturing 
Initiative, the Solar Program worked this fall with the 
National Academies of Science to hold two day-long workshops 
with industry and other participants to discuss the needs of 
the industry and the role of the Federal Government to promote 
the domestic industry and industry standards.
    The Solar Program is also now working with industry 
representatives and others to develop a Solar Vision Study 
which will look at opportunities to achieve 10-20 percent of 
the Nation's electricity generation from solar technologies by 
2030. We intend to strengthen our external review process in 
the near future with an advisory board--which can be viewed as 
somewhat analogous to the Roadmap Committee envisioned in the 
draft bill--that will meet several times a year to review the 
entire solar program.
    While we welcome additional industry input and funding for 
demonstration projects the Department is particularly concerned 
about this bill's practical effects, which are to constrain the 
flexibility the Department has to respond to diverse sources of 
information and exploit new breakthroughs in technology 
development, such as those made through investment in ARPA-E 
grants and the HUBs.
    Recommendations.--The Department strongly urges the 
Committee to consider the above concerns when reviewing the 
proposed legislation. Providing the most effective solar 
technology research and development programs requires the 
Secretary and The Department to make a series of constantly 
evolving judgments. It is important that we be allowed to call 
on multiple sources of information when we formulate our solar 
technology R&D priorities, and that we be responsive to 
provided information, even information that will only become 
available as R&D programs and national markets progress.

               s. 737--biofuels rd&d for nonroad engines

    Background.--Through RD&D efforts geared toward the 
development of integrated biorefineries, the Biomass Program is 
helping transform the Nation's renewable and abundant biomass 
resources into cost competitive, high performance biofuels, 
bioproducts, and biopower. To that end, the Biomass Program's 
R&D efforts support the goal of the EISA's Renewable Fuel 
Standard that requires 36 billion gallons of renewable fuel by 
2022.
    DOE is currently evaluating the impact of engine durability 
and emissions for use of higher ethanol blends in vehicles and 
small nonroad engines. The Department has completed emissions' 
lifetime testing of hand-held lawn and garden equipment, 
including line trimmers, leaf blowers, and generators. These 
results are reported in Effects of Intermediate Ethanol Blends 
on Legacy Vehicles and Small Nonroad Engines, Report 1--
Updated\12\, which is available online.
---------------------------------------------------------------------------
    \12\The report is available online at http://www.nrel.gov/docs/
fy09osti/43543.pdf.
---------------------------------------------------------------------------
    Over the past two years and pursuant to this small nonroad 
engine effort, the Department has coordinated with the engine 
industry to identify key issues, testing needs, and additional 
participants. Spearheaded by the small non-road industry's 
Engine Manufacturers Association and the automotive and oil 
industries' Coordinating Research Council, this effort will 
result shortly in a compilation of industry input and opinions.
    S. 737 clarifies to the ``Biofuels Distribution and 
Advanced Biofuels Infrastructure'' Program authorization in 
EISA Section 248. The proposed legislation amends both the 
scope of the program in Section 248(a) to include the impact of 
biofuels on small engines, as well as requiring that impact on 
small engines be a focus area in Section 248(b). As enacted, 
the current program's authorization language does not preclude 
the Department from undertaking these activities, and the 
legislation's section 248(b)(9) provides an additional ``catch-
all'' provision that the Secretary could use to implement such 
a program.
    By supporting the investigation of problems associated with 
the use of biofuels in small nonroad efforts, S. 737 is in line 
with research needs already identified by the Department 
concerning use of higher renewable fuel blends necessary to 
meet Renewable Fuel Standard requirements.
    The Department is already working on research in this area, 
under its existing authorizations in both its Biomass and 
Vehicle Technologies Programs. In particular, the Department is 
funding testing of chainsaws, motorcycles, snowmobiles, and 
marine engines. Thus, S. 737 may be useful only to the extent 
that it underscores Congress' explicit support for this effort.
    It is also worth noting that EISA's original Section 248, 
which S. 737 amends, did not prescribe any authorization levels 
for the program, and specific authorizations to carry out this 
section have not been provided.
    Recommendations.--The Department understands the need to 
investigate potential issues with the utilization of higher-
biofuel blends in small nonroad engines and already funds a 
number of research projects on nonroad engines. As a result, 
the Department does not see a need for this amendment.

s. 1617--investments for manufacturing process and clean technology act 
                                of 2009

    Background.--The Department appreciates the committee's 
support to improve energy efficiency across the manufacturing 
sector. I am pleased to note that the Department is already 
working to carry out many of the bill's goals.
    Through a variety of programs, the Department provides 
assistance to energy infrastructure investment to businesses of 
all sizes. The Loan Guarantee Program (LGPO), Energy Efficiency 
and Conservation Block Grants (EECBG), and Small Business 
Innovation Research (SBIR) Program all act as funding 
mechanisms to address the Nation's energy infrastructure and 
generation needs.
    Structurally, the Office of Energy Efficiency's (EE) Block 
Grant program most closely resembles S. 1617's proposal to 
create revolving loan funds to the states. A portion of the EE 
block grant structure is specifically targeted towards the 
creation of revolving loan funds and may be reinforced by 
recent House legislation.\13\ Through the Recovery Act, $37 
million\14\ was announced to support SBIR with an emphasis on 
near-term commercialization and job creation. And although 
current Loan Guarantee solicitations do not have special 
provisions to promote the award of loans to small businesses, 
LGPO is in the process of developing a Manufacturing 
Solicitation that would be open to Small and Medium Enterprises 
(SMEs) under our Financial Institutional Partnership Program 
(FIPP). Through the current solicitation, LGPO will continue to 
finance construction of manufacturing plants, as it did with 
its first loan guarantee award to Solyndra, Inc. of Fremont, 
CA, a SME.
---------------------------------------------------------------------------
    \13\H.R. 2936: Bill to Underwrite Increased Lending to Domestic 
(BUILD) Manufacturing Act http://www.govtrack.us/congress/
billtext.xpd?bill=h111-2936.
    \14\http://www.energy.gov/news2009/7824.htm.
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    Concerning Sec 137 (bb)(2), the Department, in consultation 
with the Department of Commerce, should make the determination 
of what is and is not an energy efficient product. Such a 
structure would be consistent with the longstanding positive 
working relationship between the two agencies on programs such 
as the EnergyStar rating system. We recommend changing the 
authority from the Secretary of Commerce to the Secretary of 
Energy, in consultation with the Secretary of Commerce.
    Recommendations.--The Department has a track record of 
collaboration with other federal and State programs, including 
a Memorandum of Understanding between DOE's EERE and the 
Department of Commerce's Manufacturing Extension Partnership 
Program. The Department stands ready to work with this 
Committee and DOC to consider how the bill can be improved to 
draw upon the Department's deep domain knowledge and build off 
of the Department's existing programs.

         s. 2744--carbon dioxide capture technology act of 2009

    Background.--EPAct 2005 authorized the Department to 
implement several prize competitions for breakthroughs in RD&D 
and commercial applications of energy technologies. 
Specifically, EPAct 2005 authorized the Freedom Prize to reduce 
the country's dependence on foreign oil by rewarding innovative 
deployment of existing technologies in industry, the military, 
schools, governmental entities, and communities. EISA amended 
EPAct 2005 to include additional prize competitions, including 
the Hydrogen Prize (H-Prize) and the Bright Tomorrow Lighting 
Prize (L-Prize). The H-Prize sought to provide incentives and 
reward advances in technologies, components, or systems related 
to hydrogen production, storage, distribution, and utilization, 
while the L-Prize seeks to spur the development of ultra-
efficient solid-state lighting products. The proposed 
legislation would authorize another DOE competition in another 
area of research--carbon capture.
    S. 2744 would authorize the Department to create a new 
carbon dioxide capture technology prize, a ``C-Prize,'' to 
foster novel technologies that separate carbon dioxide from 
dilute sources.
    The Department and the Administration consider carbon 
capture to be an essential tool in the mitigation of GHG 
emissions. A cost-effective technology that could significantly 
contribute to the mitigation of atmospheric carbon emissions 
would be consistent with the goals and objectives of the 
Administration.
    While the bill provides authorization to establish a C-
Prize, it sets no parameters for award amounts, which would of 
course be subject to appropriations.
    The Board authorized in the bill may qualify as a Federal 
Advisory Committee, which would be subject to Federal Advisory 
Committee Act (FACA) requirements.
    Under Section 7, the bill states that the ``applicant will 
agree to vest the intellectual property of the application 
derived from the technology in 1 or more entities that are 
incorporated in the U.S.''. The S. 2744's Intellectual Property 
language is a significant departure from previous prize 
legislation. The Department is concerned that the language will 
deter qualified applicants from entering the competition. The 
bill additionally requires C-Prize recipient(s) to vest patents 
in an entity or entities incorporated in the U.S., and it 
prohibits the transfer of title to other than U.S. incorporated 
entities until expiration of the first patent issued. However, 
the bill does little to protect U.S. technology investment 
because (1) any foreign company can incorporate a subsidiary in 
the U.S. for a nominal fee; and (2) the language does not 
prevent the U.S. corporation from licensing its patents to 
foreign companies or prevent the U.S. corporation from 
manufacturing outside the U.S. Furthermore, the vesting 
language, without clarification, may discourage existing U.S. 
companies from competing, for fear that their investment may be 
diluted by forced licensing and transfer or assignment of 
patent rights.
    Recommendations.--The Department urges the Committee to 
consider these concerns when reviewing the proposed 
legislation. The recommendations of the Committee established 
in the legislation should not be prescriptive, but rather 
should serve as one of several sources of information the 
Department can call upon when formulating its carbon capture 
technology R&D prize.
    Madam Chairman, this concludes my testimony. Again, I thank 
you for the opportunity to testify before this Committee, and I 
would be pleased to respond to your questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 2843, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

             ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 

                   Public Law 110-140; 121 Stat. 1492

AN ACT To move the United States toward greater energy independence and 
   security, to increase the production of clean renewable fuels, to 
 protect consumers, to increase the efficiency of products, buildings, 
and vehicles, to promote research on and deploy greenhouse gas capture 
   and storage options, and to improve the energy performance of the 
Federal Government, and for other purposes.

           *       *       *       *       *       *       *

TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

           *       *       *       *       *       *       *

Subtitle B--Improved Vehicle Technology

           *       *       *       *       *       *       *

SEC. 136. ADVANCED VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    (a) Definitions.--In this section:
          (1) Advanced technology vehicle.--The term ``advanced 
        technology vehicle'' [means an ultra efficient vehicle 
        or light duty vehicle that meets--] means--
                  (A) an ultra efficient vehicle or a light 
                duty vehicle that meets--
                          [(A)] (i) the Bin 5 Tier II emission 
                        standard established in regulations 
                        issued by the Administrator of the 
                        Environmental Protection Agency under 
                        section 202(I) of the Clean Air Act (42 
                        U.S.C. 7521(I)), or a lower-numbered 
                        Bin emission standard;
                          [(B)] (ii) any new emission standard 
                        in effect for fine particulate matter 
                        prescribed by the Administrator under 
                        that Act (42 U.S.C. 7401 et seq.); and
                          [(C)] (iii) at least 125 percent of 
                        the average base year combined fuel 
                        economy for vehicles with substantially 
                        similar attributes [.] or
                  (B) a vehicle such as a medium-duty or heavy-
                duty work truck, bus, or rail transit vehicle 
                that--
                          (i) is used on a public street, road, 
                        highway, or transitway;
                          (ii) meets each applicable emissions 
                        standard that is established as of the 
                        date of the application; and
                          (iii) as determined by the Secretary, 
                        the deployment of which will reduce 
                        consumption of motor fuels by 25 
                        percent or more, as compared to current 
                        surface transportation technologies 
                        that perform a similar function, unless 
                        the Secretary determines that--
                                  (I) the percentage is not 
                                achievable for a vehicle type 
                                or class; and
                                  (II) an alternative 
                                percentage for that vehicle 
                                type or class will result in 
                                substantial reductions in motor 
                                fuel consumption.

           *       *       *       *       *       *       *

          (3) Engineering integration costs.--The term 
        ``engineering integration costs'' includes the cost of 
        engineering tasks relating to--
                  (A) incorporating qualifying components into 
                the design of advanced technology vehicles; and
                  (B) designing tooling and [equipment and] 
                equipment developing manufacturing processes 
                and material suppliers and manufacturing 
                process equipment for production facilities 
                that produce qualifying components or advanced 
                technology vehicles.
          [(4) Qualifying components.--The term ``qualifying 
        components'' means components that the Secretary 
        determines to be--
                  (A) designed for advanced technology 
                vehicles; and
                  (B) installed for the purpose of meeting the 
                performance requirements of advanced technology 
                vehicles.]
    (4) Qualifying components.--The term 'qualifying 
components' means components, systems, or groups of subsystems 
that the Secretary determines to--
                  (A) be designed for improving fuel economy of 
                advanced technology vehicles; and
                  (B) contribute measurably to the overall fuel 
                economy of the advanced technology vehicles.
    (b) Advanced Vehicles Manufacturing Facility.--The 
Secretary shall provide facility funding awards under this 
section [to automobile] to advanced technology vehicle 
manufacturers, ultra efficient vehicle manufacturers, and 
component suppliers to pay not more than 30 percent of the cost 
of--
          (1) reequipping, expanding, or establishing a 
        manufacturing facility in the United States to 
        produce--

           *       *       *       *       *       *       *

    (d) Direct Loan Program.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this Act, and subject to the 
        availability of appropriated funds, the Secretary shall 
        carry out a program to provide [a total of not more 
        than $25,000,000,000 in] loans to eligible individuals 
        and entities (as determined by the Secretary) for the 
        costs of activities described in subsection (b). The 
        loans shall be made through the Federal Financing Bank, 
        with the full faith and credit of the United States 
        Government on the principal and interest. The full 
        credit subsidy shall be paid by the Secretary using 
        appropriated funds.

           *       *       *       *       *       *       *

    (h) Set Aside for Small [Automobile] Advanced Technology 
Vehicle Manufacturers and Component Suppliers.--
          (1) Definition of covered firm.--In this subsection, 
        the term ``covered firm'' means a firm that--
                  (A) employs less than 500 individuals; and
                  (B) manufactures ultra efficient vehicles, 
                [automobiles] advanced technology vehicles, or 
                components of [automobiles] advanced technology 
                vehicles.

           *       *       *       *       *       *       *

    (i) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through [2012] 2015.

           *       *       *       *       *       *       *

                                  
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