69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–401 

INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND 

DEVELOPMENT ACT OF 2007 

OCTOBER 22, 2007.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. GORDON of Tennessee, from the Committee on Science and 

Technology, submitted the following 

R E P O R T 

[To accompany H.R. 3775] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Science and Technology, to whom was referred the bill (H.R. 3775) to support research and development of 

new industrial processes and technologies that optimize energy efficiency and environmental performance, utilize diverse sources of 

energy, and increase economic competitiveness, having considered 

the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

I. Amendment ................................................................................................. 2 

II. Purpose of the Bill ...................................................................................... 3 

III. Background and Need for the Legislation ................................................ 3 

IV. Hearing Summary ....................................................................................... 5 

V. Committee Actions ...................................................................................... 6 

VI. Summary of Major Provisions of the Bill, As Reported ........................... 6 

VII. Section-by-Section Analysis (by Title and Section), As Reported ............ 6 

VIII. Committee Views ........................................................................................ 7 

IX. Cost Estimate .............................................................................................. 10 

X. Congressional Budget Office Cost Estimate ............................................. 10 

XI. Compliance with Public Law 104–4 .......................................................... 11 

XII. Committee Oversight Findings and Recommendations ........................... 12 

XIII. Statement on General Performance Goals and Objectives ...................... 12 

XIV. Constitutional Authority Statement .......................................................... 12 

XV. Federal Advisory Committee Statement ................................................... 12 

XVI. Congressional Accountability Act .............................................................. 12 

XVII. Earmark Identification ............................................................................... 12 

XVIII. Statement on Preemption of State, Local, or Tribal Law ........................ 12 

XIX. Changes in Existing Law Made by the Bill, as Reported ........................ 12 


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XX. Committee Recommendations .................................................................... 12 

XXI. Proceedings of the Subcommittee Markup ................................................ 13 

XXII. Proceedings of the Full Committee Markup ............................................. 26 

XXIII. Exchange of Letters .................................................................................... 40 

I. AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Industrial Energy Efficiency Research and Development Act of 2007’’. 

SEC. 2. FINDINGS. 

The Congress finds the following: 

(1) According to the Energy Information Administration’s 2006 Annual Energy Review, the industrial sector in 2006 accounted for more energy use (32 

percent) than the residential (21 percent), commercial (18 percent), or transportation sector (29 percent). 

(2) The primary energy intensive industries vital to maintaining our country’s 

infrastructure and economic and national security include steel, chemicals, 

metal casting, forest products, glass, aluminum, petroleum refining, and mining, as well as other energy intensive manufacturers. 

(3) The Department of Energy has demonstrated the success of public-private 

partnerships with these industries resulting in research, development, and deployment of new energy efficient technologies which reduce emissions and improve manufacturing competitiveness. 

(4) Innovations in manufacturing processes within these industries may be 

translated into efficiency improvements in buildings, transportation, and other 

economic sectors that depend upon these industries. 

(5) While past public-private partnerships have resulted in significant energy 

efficiency improvements in manufacturing processes, there is a need for new 

technologies to achieve continual energy efficiency improvements. 

(6) Innovations made in the last few decades assisted the United States in 

remaining competitive in the global market. Continued innovation in the areas 

of energy efficiency and feedstock diversification are necessary to enable the 

United States to maintain a competitive edge. 

(7) The Department of Energy should continue collaborative efforts with industry, particularly the manufacturing sector, to broaden and accelerate the 

high-risk research and development of new manufacturing processes that optimize energy efficiency and utilize diverse sources of energy. 

(8) These partnerships support critical research and development capabilities 

at universities and other research institutions while training future generations 

of engineers in critical areas of energy systems and efficient industrial process 

technologies for our domestic industries. 

SEC. 3. INDUSTRIAL TECHNOLOGIES PROGRAM. 

(a) IN GENERAL.—The Secretary of Energy (in this Act referred to as the ‘‘Secretary’’) shall establish a program, in cooperation with energy-intensive industries, 

trade and industry research collaborations representing such industries, and institutions of higher education, to conduct research, development, demonstration, and 

commercial application activities with respect to new industrial and commercial 

processes, technologies, and methods to—

(1) achieve—

(A) substantial improvements in energy efficiency; and 

(B) environmental performance improvements such as waste reduction, 

emissions reductions, and more efficient water use; and 

(2) enhance the economic competitiveness of the United States industrial sector. 

(b) PROGRAM ACTIVITIES.—Research, development, demonstration, and commercial 

application activities under this section may include—

(1) activities to support the development and use of technologies and processes that improve the quality and quantity of feedstocks recovered or recycled 

from process and waste streams; 

(2) research to meet manufacturing feedstock requirements with alternative 

resources; 


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(3) research to develop and demonstrate technologies and processes that utilize alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries; 

(4) research to achieve energy efficiency in steam, power, control system, and 

process heat technologies, and in other manufacturing processes; and 

(5) a program to fund research, development, and demonstration relating to 

inventors’ and small companies’ technology proposals, based on energy savings 

potential, commercial viability, and technical merit. 

(c) COMPETITIVE AWARDS.—All awards under this section shall be made on a competitive, merit-reviewed basis. 

(d) COORDINATION AND NONDUPLICATION.—The Secretary shall, coordinate efforts 

under this section with other programs of the Department and other Federal agencies, to avoid duplication of effort. 

(e) ANNUAL REPORT.—Not later than 1 year after the date of enactment of this 

Act, and once every 2 years thereafter, the Secretary shall submit to the Congress 

a report on the activities conducted pursuant to this Act, including— (1) a description of the activities used to facilitate cooperation with energyintensive industries, universities, and other participants in the program; and 

(2) a description of ongoing projects and new projects initiated, and the anticipated energy savings associated with achievement of each project’s goals. 

SEC. 4. UNIVERSITY-BASED INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS. 

To strengthen the program under section 3, the Secretary shall provide funding 

to university-based industrial research and assessment centers, whose purpose shall 

be— (1) to identify opportunities for optimizing energy efficiency and environmental performance; 

(2) to promote application of emerging concepts and technologies in small and 

medium-sized manufacturers; 

(3) to promote the research and development for usage of alternative energy 

sources to supply heat, power, and new feedstocks for energy intensive industries; 

(4) to coordinate with appropriate State research offices, and provide a clearinghouse for industrial process and energy efficiency technical assistance resources; and 

(5) to coordinate with State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United 

States. 

SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary to carry out this Act $150,000,000 for each of the fiscal years 2009 through 2013. 

II. PURPOSE OF THE BILL

The purpose of H.R. 3775 is to authorize and support research, 

development, demonstration, and commercial application of new industrial processes and technologies that will optimize energy efficiency, environmental performance, and economic competitiveness 

of energy intensive industries; to enhance research and development through better coordination of interdepartmental research; 

and to expand Industrial Assessment Centers programs at universities to promote student training and adoption of energy efficient 

technologies and practices by small and medium-sized industries. 

III. BACKGROUND AND NEED FOR LEGISLATION

An expanding economy, growing population, and rising standard 

of living create rapidly growing demands for energy, making energy 

conservation a key national goal. In the U.S. industry is responsible for more than one-third of all energy consumed, the large majority of which is consumed by manufacturing industries such as 

chemical, glass and metals production, mining, petroleum refining, 

and forest and paper products. These industries require very large 

amounts of energy per unit of production, making them particularly susceptible to high energy prices. These and other energy-inVerDate Aug 31 2005 06:50 Oct 24, 2007 Jkt 069006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR401.XXX HR401

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tensive industries are ideal candidates on which to focus federal 

R&D efforts and apply new technologies, increase efficiency, raise 

productivity, reduce wastes, and trim costs. 

The Energy Efficiency and Renewable Energy’s (EERE) Industrial Technologies Program (ITP) at the Department of Energy 

(DOE), works to improve the energy intensity of U.S. industry 

through coordinated research and development and dissemination 

of innovative energy efficiency technologies and practices. The ITP 

invests in high-risk, high-value cost-shared R&D projects to reduce 

industrial energy use and process waste streams, while stimulating 

productivity and growth. Competitive solicitations are the principal 

mechanism used by ITP to conduct cost-shared R&D. Solicitations 

reflect the priorities of the Program and selection of projects follows 

merit-based criteria that emphasize projected energy, environmental, and economic benefits. In addition, ITP makes available information and resources on other financial assistance and research 

opportunities and case studies from past ITP projects. The ITP 

portfolio details over 1,000 technology development projects in 

which ITP has been involved. 

The Industrial Technologies Program claims numerous successes. 

The ITP is considered one of the most effective DOE programs at 

transferring technologies, with over 170 technologies reaching the 

commercial market. An estimated 13,000 U.S. manufacturing 

plants have been improved through the ITP technology delivery effort. Nearly 5 quadrillion Btu of energy (equal to approximately 

$23 billion) of energy savings are attributed to the program since 

its inception, with 366 trillion Btu saved in 2004 alone. 

The ITP also sponsors 26 University-Based Industrial Assessment Centers (IACs) that provide no-cost energy assessments primarily to small- and medium-sized manufacturers. Assessments 

are conducted by teams of faculty and students, and involve examinations of potential savings from energy efficiency improvements, 

waste minimization and pollution prevention, and productivity improvement. The average expected savings per assessment is fifty to 

seventy thousand dollars, with much larger savings possible with 

large operations. Companies are in turn encouraged to replicate accomplishments and share results. 

By operating through university engineering programs, the IACs 

serve as a training ground for the next generation of energy and 

industrial engineers. Roughly 240 students receive training 

through the program each year. When budgets for the program 

were higher, 38 IACs operated around the country, compared to the 

26 in operation today. 

While the U.S. industrial sector has become much more energy 

efficient over the past 30 years, there are still ample opportunities 

to achieve efficiency gains. However, energy-intensive industries 

face enormous competitive pressures that make it difficult to make 

the necessary R&D investments in technology development on their 

own. Energy-intensive industries tend to exhibit relatively low levels of R&D spending, and are often unwilling to accept the risks 

associated with undertaking complex capital-intensive technology 

development and implementation. Constantly changing market 

conditions, energy prices, and other business concerns affect the 

ability and willingness of industry to pursue energy efficiency opportunities. As the role of energy in industry changes, the ITP 


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should have the resources to sustain and expand operations, adapt, 

and reshape its strategy where needed. Without a sustained commitment by the private and public sectors to invest in technology 

R&D and adopt new technologies, the ability to close the gap between U.S. energy supply and demand will be greatly limited. 

The budget for the Industrial Technologies Program has decreased dramatically in recent years. The Fiscal Year 2007 budget 

request for Industrial Technologies was $45.6 million, an $11.3 million reduction from the Fiscal Year 2006 Appropriation. By comparison, appropriated levels as recently as Fiscal Year 2000 were 

as high as $175 million. These funding levels reflect a dramatic 

shift in priorities away from industrial efficiency R&D. This legislation is needed to ensure continued gains in industrial energy efficiency and environmental performance through research and development. 

IV. HEARING SUMMARY

The Energy and Environment Subcommittee held a hearing on 

Tuesday, September 25, 2007 to hear testimony relevant to the Industrial Technologies Program and to receive comments on a discussion draft of a bill to authorize funding and provide guidelines 

for the program. The Subcommittee heard from four witnesses representing diverse viewpoints on the program: • Mr. Malcolm Verdict, C.E.M., Associate Director of the Energy 

Systems Laboratory within the Texas Engineering Experiment Station (TEES) at Texas A&M University. • Mr. Fred Moore. Global Director of Manufacturing and Technology for Dow Chemical’s Energy Business, and Chairman of the 

Energy Efficiency Task Force of the National Association of Manufacturers. • Mr. Lawrence Kavanagh, Vice President of Manufacturing and 

Technology for the American Iron and Steel Institute (AISI). • Mr. Paul Cicio, President at Industrial Energy Consumers of 

America. 

The hearing examined the successes and limitations of the Industrial Technologies Program, and how the program can be improved 

to increase industrial energy efficiency and environmental performance in the U.S. industrial sector. It also looked at which areas of 

research and development should be enhanced and explored by the 

ITP and the Industrial Assessment Centers, and what cost-effective 

opportunities does a further enhancement of industrial efficiency 

program offer. The hearing provided background for the legislation. 

The subcommittee heard testimony from four witnesses offering 

perspectives from the U.S. industrial sector, industry trade associations, and university-based energy auditing centers. The witnesses 

all commented on the need and timeliness of this legislation. There 

was unanimous agreement among all the witnesses that the program should be funded at higher levels than it has received in recent years, and that increased funding was needed to achieve further gains in energy efficiency and environmental performance of 

the industrial sector. The witnesses also indicated their support for 

the program to engage in projects that would help industry to reduce its greenhouse gas emissions. 

On October 9, 2007, Representative Nick Lampson, Chairman of 

the Energy and Environment Subcommittee introduced H.R. 3775, 


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The Industrial Energy Efficiency Research and Development Act of 

2007. 

V. SUMMARY OF COMMITTEE ACTIONS

The Subcommittee on Energy and Environment met to consider 

H.R. 3775 on October 10, 2007, with no amendments to the bill. 

Mr. McNerney moved that the Subcommittee favorably report the 

bill, H.R. 3775, to the Full Committee on Science and Technology. 

The motion was agreed to by a voice vote. 

The Committee on Science and Technology met on October 16, 

2007, to consider H.R. 3775 as reported by the Subcommittee and 

to consider the following amendment: 

The Manager’s amendment offered by Representative Lampson 

and Representative Inglis: 

The manager’s amendment to the bill made minor corrections 

and additions to the bill. The amendment adds a finding to further 

elaborate on the past successes of the program in working with energy intensive industries. The amendment adds to the list of 

groups the program should coordinate with. The amendment 

strikes the term, industry trade associations, and changes this to 

trade and industry research collaborations. The amendment also 

strikes subsection (c) of section 3 on financial assistance. Finally, 

the amendment adds a biannual reporting requirement. The 

amendment was adopted by voice vote. 

The Committee favorably reported the bill, H.R. 3775, as amended, by a voice vote. 

VI. SUMMARY OF MAJOR PROVISIONS AS REPORTED

H.R. 3775 authorizes $150 million for each fiscal year 2009–2013 

to the Department of Energy to support research, development, 

demonstration, and commercial application of new industrial processes and technologies to optimize energy efficiency and environmental performance of the U.S. industrial sector, and expand the 

Industrial Assessment Centers program at universities. The bill encourages research, development and demonstration to improve the 

quality, quantity, and alternative resources of industrial feedstocks; 

using new alternative energy technologies; and achieving greater 

energy efficiency in steam, power, control system, and process heat 

technologies in energy-intensive industries. H.R. 3775 also allows 

for competitive awards to individuals and small businesses for 

novel energy savings concepts and inventions. H.R. 3775 enhances 

research and development efforts through cooperation with energy 

intensive industries, industry trade associations, and institutions of 

higher education and through better coordination of interdepartmental research as well as with other Federal agencies. 

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

Section 1. Short title 

‘‘The Industrial Energy Efficiency Research and Development Act 

of 2007’’

Sec. 2. Findings 

The U.S. Industrial sector accounts for more energy use (32%) 

than the residential, commercial, or transportation sectors. IndusVerDate Aug 31 2005 06:50 Oct 24, 2007 Jkt 069006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR401.XXX HR401

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tries have almost reached optimal energy efficiencies and new innovations and technologies’ research, development, and demonstration are necessary to increase energy efficiency and diversify energy and feedstock sources. 

SEC. 3. Industrial technologies program 

Establishes a program within the Department of Energy to work 

with energy-intensive industries, industry trade associations, and 

institutions of higher education to conduct cost-shared research, development, demonstration, and commercial application activities for 

new innovations and technologies to enhance industrial efficiency 

and economic competitiveness of U.S. industrial sector. 

Defines the activities of the program to include: research to improve the quality and quantity of feedstocks recovered from waste 

streams; to develop alternative resources for use as industrial feedstocks; developing alternative energy sources to supply heat and 

power for energy-intensive industries; and achieve overall energy 

efficiency in manufacturing processes. 

Requires the Secretary to submit a report to Congress one year 

after enactment and every two years thereafter on the activities of 

the program including a description of the cooperative activities 

with non-federal partners and a description of projects undertaken 

by the program. 

SEC. 4. University-based industrial research and assessment centers 

Requires the Secretary to fund University-based Industrial Research and Assessment Centers to aid small and medium sized 

manufacturers by identifying opportunities to optimize their energy 

efficiency and improve environmental performance through advanced technologies, to serve as a resource for technical data, and 

to train engineering and research students to conduct energy assessments. 

Sec. 5. Authorization of appropriations 

$150 million is authorized for each fiscal year 2009–2013. 

VIII. COMMITTEE VIEWS

It is the view of the Committee that improving the efficiency of 

the energy-intensive industrial sector is vital to maintaining our 

country’s economic infrastructure and our security. H.R. 3775 seeks 

to support and encourage research and development of new industrial processes and technologies that industry can adopt to improve 

their energy efficiency, environmental performance, including lowering greenhouse gas emissions, and increase U.S. competitiveness. 

The Committee believes the Industrial Technology Program (ITP) 

should continue to work with the traditional material manufacturing industries that have been the focus of this program since its 

inception. Industries such as primary metals (including steel and 

aluminum), chemicals, metal casting, ceramics (including glass and 

cement), forest products, petroleum refining, and mining all require 

significant energy input for their operations. Through their partnership with the ITP, many of these industries have become more 

energy efficient. However, they continue to utilize significant energy resources and as energy prices increase or competition for traVerDate Aug 31 2005 06:50 Oct 24, 2007 Jkt 069006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR401.XXX HR401

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ditional energy sources increases, further improvements will be required for these industries to remain competitive in the U.S. While 

incremental efficiency gains are still likely in many areas, dramatic 

improvements may only be possible through wholesale changes in 

process technologies and feedstocks. 

The Committee believes the ITP’s scope should include working 

with these industries to develop new and cost effective feedstocks 

and processes that will not only save energy, but will enable these 

industries to transition to the use of nontraditional inputs and to 

improve their overall environmental performance. The Committee 

believes that the program should work with industry to develop 

processes and technologies that will enable greater re-use of processing resources and waste reduction. This not only delivers benefits to the communities where these industries operate by reducing 

waste and emissions, it also delivers financial benefits by reducing 

costs for waste disposal and input purchases. 

The Committee believes there are significant opportunities 

through the increased use of renewable energy alternatives to enhance sustainability and lower emissions when supplying heat, 

power and feedstock. For example, energy consumption for industrial steam users can be reduced by developing an expanded portfolio of ultra-efficient steam generation systems as well as, improving the efficiency of industrial heating systems by developing process heating and combustion technologies and improved energy recovery technologies. Furthermore, research, development, and demonstration of advanced combined heat and power technologies 

(CHP) can lead to significant reductions in carbon emissions, cost 

of electricity, and investments in future power generation, transmission, and delivery upgrades. 

The Committee recognizes the Department has numerous efforts 

underway through multiple programs, outside of the Industrial 

Technologies Program, to develop new materials for use as feedstocks and fuels as well as to develop new energy sources. The 

Committee encourages the Department to facilitate the exchange of 

information and experience of these programs with the ITP. ITP’s 

long history of working in partnership with industry and its success in getting broader adoption of new technologies make this program a good choice for facilitating technology transfer from the lab 

into general use. 

Rising costs for traditional fossil energy sources represents a significant challenge and is providing a strong incentive for energy intensive industries to examine the potential of alternative energy 

supplies. The Committee believes the ITP is well-suited to work 

with these industries to assist them in making the transition to the 

use of alternative energy resources to lead to increased efficiency 

and cost-effectiveness. Better information exchange among DOE 

programs would facilitate this outcome. 

The Committee recognizes that ideas on technological advances 

can be generated from various sources. For individuals and small 

businesses with ideas and inventions, developing an energy saving 

invention and commercializing it in a market with entrenched technologies and processes can be difficult. The Committee believes 

DOE should resume its support for these small-scale activities as 

well and has authorized an Inventions and Innovation Program to 

offer technical and financial support to inventors and small busiVerDate Aug 31 2005 06:50 Oct 24, 2007 Jkt 069006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR401.XXX HR401

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nesses with promising energy-saving concepts and technologies. At 

present, the Department is not supporting this type of program. 

The ITP program historically partners with industries using a 

dollar for dollar match cost-sharing arrangement in accordance 

with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 

16352). The Committee believes this is a great strength of this program and demonstrates the commitment and confidence that industry partners have to this program. The Committee also believes 

that awards to any entity should be made on a competitive, meritreviewed basis. 

The Committee believes the Industrial Assessment Centers 

(IACs) based at colleges and universities make an important contribution to the ITP. The Centers provide eligible small- and medium-sized manufacturers with comprehensive industrial assessments, performed at no cost to the manufacturer by students and 

faculty. The Department has developed criteria for eligibility used 

by the Centers. Small- and medium-sized manufacturers usually 

cannot afford the services provided through the Centers and often 

do not have the ability to participate in a collaborative R&D effort 

to develop new technologies. And, while it is often the case that 

new technologies and practices developed in larger industry may 

ultimately find its way to smaller manufacturers, the IACs actually 

provide a conduit for novel technologies and practices to flow the 

other way, from smaller firms towards deployment in larger-scale 

industries. The Committee believes these activities not only provide 

benefit to small- and medium-size manufacturers, but provide important hands-on training for students who will eventually work in 

the industrial sector and carry their knowledge and experience 

with them. Efforts such as these that improve the overall energy 

and environmental performance of our economy benefit us all and 

can help to maintain the economic viability of our manufacturing 

base. 

The Committee recognizes the primary activity of the Centers 

has been providing assessments, information, and recommendations of market-ready technologies to small- and medium-sized 

manufacturers. However, the Committee believes with some additional resources the Centers could engage in more research utilizing the research and engineering capabilities of the participating 

universities. 

The number and location of the IACs has varied widely depending on program funding levels and university involvement. Currently there are 26 centers, but in the past there were as many as 

38. The Committee has not specified the number of Centers the 

program should support. However, the Committee believes the 

work of these Centers is vital to increase the distribution of energysaving processes and technologies throughout the country. Therefore, the bill directs the Department to ensure the services provided by the Centers are available in all regions of the country. The 

Committee also supports the participation of community colleges 

and state-accredited training centers in the IACs. These organizations play a vital role in education and training and have a student 

population that would benefit from the hands-on experience conducted through the IAC program. 

The Committee also believes an important function of the Centers is to work with State and regional offices to gather and serve 


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as a clearinghouse for information on the programs and technical 

assistance available to help businesses improve their energy efficiency and environmental performance. The Committee also believes the outreach efforts of the Centers would be enhanced by collecting and disseminating information about their successes in 

working with small- and medium-sized companies and the energy 

savings the companies achieved by implementing new processes 

and technologies. 

The Committee is concerned about the decline of financial support for the ITP over the past few years. The need for better environmental performance, economic competitiveness, and greater energy efficiency gains is growing and the ITP should be funded at 

a higher level to promote a more aggressive pace of achievement 

for these goals. 

IX. COST ESTIMATE

A cost estimate and comparison prepared by the Director of the 

Congressional Budget Office under section 402 of the Congressional 

Budget Act of 1974 has been timely submitted to the Committee on 

Science and Technology prior to the filing of this report and is included in Section X of this report pursuant to House Rule XIII, 

clause 3(c)(3). 

H.R. 3775 does not contain new budget authority, credit authority, or changes in revenues or tax expenditures. Assuming that the 

sums authorized under the bill are appropriated, H.R. 3775 does 

authorize additional discretionary spending, as described in the 

Congressional Budget Office report on the bill, which is contained 

in Section X of this report. 

X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

OCTOBER 19, 2007. 

Hon. BART GORDON, 

Chairman, Committee on Science and Technology, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3775, the Industrial Energy Efficiency Research and Development Act of 2007. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Leigh Angres. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 

H.R. 3775—Industrial Energy Efficiency Research and Development 

Act of 2007 

Summary: H.R. 3775 would authorize the appropriation of $150 

million a year over the 2009–2013 period to expand the Department of Energy’s (DOE’s) industrial technologies program to promote energy efficiency in the industrial sector. Assuming appropriation of the authorized amounts, CBO estimates that implementing H.R. 3775 would cost $68 million in 2009 and $489 million 

over the 2009–2012 period. Spending of about $260 million would 

occur after 2012. Enacting H.R. 3775 would not affect direct spending or revenues. 


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H.R. 3775 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 H.R. 3775 is shown in the following table. The costs 

of this legislation fall within budget function 250 (general science, 

space, and technology). 

By fiscal year, in millions of dollars— 

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level .................................................................................................. 0 150 150 150 150 

Estimated Outlays ................................................................................................... 0 68 128 143 150 

Note: A full year appropriation for the Department of Energy has not yet been enacted. The 2007 appropriation for the Department of Energy’s industrial technologies program was approximately $57 million. Under the bill, an additional $150 million would be authorized in 2013. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

3775 will be enacted during fiscal year 2008 and that the entire 

amounts authorized will be appropriated for each fiscal year. 

H.R. 3775 would authorize the appropriation of $150 million a 

year over the 2009–2013 period to expand DOE’s industrial technologies program, which promotes energy efficiency in manufacturing processes. The 2007 appropriation for these activities was 

approximately $57 million. Under the bill, the Secretary of Energy 

would award grants to promote partnerships among energy-intensive industries, trade and industry research collaborations, and institutes of higher education to develop technologies that utilize alternative energy sources to supply heat, power, and new feedstocks 

(raw materials) for energy-intensive industries. 

The bill also would increase funding for university-based industrial research and assessment centers. Currently, these centers provide no-cost energy assessments to small-and medium-sized manufacturers. H.R. 3775 would require the Secretary to submit a report 

to the Congress not later than one year after the date of enactment, and once every two years thereafter, detailing ongoing 

projects and the anticipated energy savings that result from use of 

new technologies. Based on the historical spending patterns of 

DOE research and development programs, CBO estimates that implementing H.R. 3775 would cost $68 million in 2009 and $489 million over the 2009–2012 period. 

Intergovernmental and private-sector impact: H.R. 3775 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. The bill would authorize increased funding for a Department of Energy program to research and develop new technology 

for energy efficiency and waste reduction. This program would benefit institutions of higher education, and any costs they might 

incur, including matching funds, would be incurred voluntarily. 

Estimate prepared by: Federal Costs: Leigh Angres; Impact on 

State, Local, and Tribal Governments: Neil Hood; Impact on the 

Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

XI. COMPLIANCE WITH PUBLIC LAW 104–4

H.R. 3775 contains no unfunded mandates. 


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XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

The oversight findings and recommendations of the Committee 

on Science and Technology are reflected in the body of this report. 

XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause (3)(c) of House Rule XIII, the goal of H.R. 

3775 is to support research and development of new industrial 

processes and technologies that optimize energy efficiency and environmental performance, utilize diverse sources of energy, and increase economic competitiveness. 

XIV. CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States 

grants Congress the authority to enact H.R. 3775. 

XV. FEDERAL ADVISORY COMMITTEE STATEMENT

H.R. 3775 does not establish nor authorize the establishment of 

any advisory committee. 

XVI. CONGRESSIONAL ACCOUNTABILITY ACT

The Committee finds that H.R. 3775 does not relate to the terms 

and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1). 

XVII. EARMARK IDENTIFICATION

H.R. 3775 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of Rule XXI. 

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

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

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

H.R. 3775, as reported, makes no changes in existing law. 

XX. COMMITTEE RECOMMENDATIONS

On October 16, 2007, the Committee on Science and Technology 

favorably reported H.R. 3775, as amended, by a voice vote and recommended its passage by the House of Representatives. 


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XXI. PROCEEDINGS OF THE MARKUP BY THE 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT ON H.R. 3775, THE INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT ACT OF 2007 

WEDNESDAY, OCTOBER 10, 2007 

HOUSE OF REPRESENTATIVES, 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT, 

COMMITTEE ON SCIENCE AND TECHNOLOGY, 

Washington, DC. 

The Subcommittee met, pursuant to call, at 2:06 p.m., in Room 

2318 of the Rayburn House Office Building, Hon. Nick Lampson 

[Chairman of the Subcommittee] presiding. 

Chairman LAMPSON. Good afternoon. This Committee on Energy 

and Environment will come to order. Pursuant to notice, the Subcommittee on Energy and Environment meets to consider the following measures: H.R. 3776, the Energy Storage Technology Advancement Act of 2007; H.R. 3775, the Industrial Energy Efficiency 

Research and Development Act of 2007; and H.R. 1834, the National Ocean Exploration Program Act. We will now proceed with 

the markup, beginning with opening statements, and I will begin. 

Today the Subcommittee will consider three bills. 

The first is the Energy Storage Technology Advancement Act, introduced yesterday by Chairman Gordon. As we learned in the 

hearing last week, an aggressive research program to accelerate 

the development of batteries and other energy-storing technologies 

is essential to achieving greater energy efficiency and emission reduction in the utility and transportation sectors. Chairman Gordon’s bill, which incorporates many features of an energy bill introduced earlier in the Congress by Ranking Member Hall, will ensure 

that we move these import technologies forwards and support a 

vigorous domestic industrial capability in this areas. 

The second bill is the Industrial Energy Efficiency Research and 

Development Act. I introduced this legislation yesterday after circulating a discussion draft of the bill at the end of September. If we 

want to maintain a competitive, domestic industrial economy, we 

must find ways to enable energy-intensive industries to become 

more energy efficient and to diversify the fuel and raw materials 

they use to manufacture their products. Competition for energy and 

material is increasing and driving up prices for these inputs. The 

Industrial Technology Program at the Department of Energy has 


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been working in partnership with industries across the county to 

achieve these important goals, but we still must do more. 

And finally, we will consider H.R. 1834, introduced by our colleague on the Natural Resources Committee, Representative 

Saxton. The National Ocean Exploration and National Undersea 

Research Program Act will expand our knowledge of the oceans and 

provide basic information about the vast resources of the seas. The 

ocean and coastal areas of our nation support significant economic 

activity in a wide variety of area, but in many respects, the oceans 

remain a mystery with many areas unexplored. Representative 

Saxton’s legislation provides the National Oceanic and Atmospheric 

Administration with the authorities and direction to support a vigorous ocean-exploration program. We will continue to work with 

our colleagues on the Natural Resources Committee to move this 

legislation forward. 

I urge the Members of the Subcommittee to support all three of 

these bills, and I look forward to continue working with all of you 

as these will go forward. 

[The prepared statement of Chairman Lampson follows:] 

PREPARED STATEMENT OF CHAIRMAN NICK LAMPSON

Good afternoon. 

Today the Subcommittee will consider three bills. The first is the Energy Storage 

Technology Advancement Act introduced yesterday by Chairman Gordon. As we 

learned in the hearing last week, an aggressive research program to accelerate the 

development of batteries and other energy storing technologies is essential to 

achieving greater energy efficiency and emission reductions in the utility and transportation sectors. 

Chairman Gordon’s bill, which incorporates many features of an energy bill introduced earlier in this Congress by Ranking Member Hall, will ensure that we move 

these important technologies forward and support a vigorous domestic industrial capability in this area. 

The second bill is the Industrial Energy Efficiency Research and Development Act. 

I introduced this legislation yesterday after circulating a discussion draft of the bill 

at the end of September. 

If we want to maintain a competitive, domestic industrial economy we must find 

ways to enable energy-intensive industries to become more energy efficient and to 

diversify the fuel and raw materials they use to manufacture their products. Competition for energy and materials is increasing and driving up prices for these inputs. The Industrial Technology Program at the Department of Energy has been 

working in partnership with industries across the country to achieve these important goals, but we must do more. 

Finally, we will consider H.R. 1834 introduced by our Colleague on the Natural 

Resources Committee, Rep. Saxton. The National Ocean Exploration and National 

Undersea Research Program Act will expand our knowledge of the oceans and provide basic information about the vast resources of the seas. 

The ocean and coastal areas of our nation support significant economic activity 

in a wide variety of areas. But in many respects, the oceans remain a mystery with 

many areas unexplored. Rep. Saxton’s legislation provides the National Oceanic and 

Atmospheric Administration with the authorities and direction to support a vigorous 

ocean exploration program. We will continue to work with our colleagues on the 

Natural Resources Committee to move this legislation forward. 

I urge the Members of the Subcommittee to support all three of these bills, and 

I look forward to continue working with all of you as these bills go forward. 

Chairman LAMPSON. And I recognize Mr. Inglis to present his 

opening remarks. 

Mr. INGLIS. Thank you, Mr. Chairman. I look forward to this 

markup, and today we will mark up two bills that address two vital 

needs in pursuit of our energy security: energy efficiency and energy storage. 


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The Department of Energy’s Industrial Technologies Program 

has a successful track record of helping U.S. manufactures translate research and development into efficient, cost-saving technologies. By reauthorizing this program, the Industrial Energy Efficiency Research and Development Act, H.R. 3775, will support our 

nation’s industries in achieving energy efficiency while remaining 

economically competitive. It is very important that we direct this 

program to prioritize its efficiency efforts, targeting industry sectors, not individual businesses, where we can attain the best emissions reductions for our buck. 

While energy efficiency reduces our total consumption of foreign 

oil and gas, energy-storage progress will encourage development of 

clean, renewable energy sources. H.R. 3776, the Energy Storage 

Technology Advancement Act, can help promote consistent and stable energy supply from renewable sources. That is a big hurdle, but 

it is one we can’t clear soon enough. 

Finally, we shall be marking up the bill H.R. 1834, the National 

Ocean Exploration Program Act. Marine scientists tell us that we 

haven’t come close to tapping the resources available to us in and 

under our oceans. I hope that the bill we markup today steers research dollars to those fact-finding projects so that we might, one 

day, reap the benefits of our hidden oceanic resources. 

Thank you again, Mr. Chairman, and I look forward to working 

with you to advance this legislation. 

[The prepared statement of Mr. Inglis follows:] 

PREPARED STATEMENT OF REPRESENTATIVE BOB INGLIS

Thank you for holding this markup, Mr. Chairman. 

Today we’ll mark up two bills that address two vital needs in our pursuit of energy security: energy efficiency and energy storage. 

The Department of Energy’s Industrial Technologies Program (ITP) has a successful track record of helping U.S. manufacturers translate research and development 

into efficient, cost-saving technologies. By reauthorizing this program, the Industrial 

Energy Efficiency Research and Development Act (H.R. 3775) will support our nation’s industries in achieving energy efficiency while remaining economically competitive. It is very important that we direct this program to prioritize its efficiency 

efforts, targeting industry sectors (not individual businesses) where we can attain 

the best emissions reductions for our buck 

While energy efficiency reduces our total consumption of foreign oil and gas, energy storage progress will encourage development of clean, renewable energy 

sources. H.R. 3776, the Energy Storage Technology Advancement Act can help promote consistent and stable energy supply from renewable sources. That’s a big hurdle, but it’s one we can’t clear soon enough. 

Finally, we’ll be marking up the H.R. 1834, the National Ocean Exploration Program Act. Marine scientists tell us that we haven’t come close to tapping the resources available to us in and under our oceans. I hope that the bill we markup 

today steers research dollars to those ‘‘fact-finding’’ projects, so that humanity might 

one day reap the benefits of our hidden oceanic resources. 

Thank you again, Mr. Chairman, and I look forward to working with you to advance this legislation. 

Chairman LAMPSON. Thank you, Mr. Inglis. Without objection, 

Members may place statements in the record at this point. 

We will now consider H.R. 3775, the Industrial Energy Efficiency 

Research and Development Act of 2007. 

I yield myself five minutes to describe this bill. 

This bill authorizes and expands the Department of Energy’s Industrial Technologies Program through better coordination of the 

interdepartmental research, enhancing the Industrial Assessment 


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Center’s Program at universities and supporting more research and 

development of new innovations and technologies as they relate to 

efficiency improvement of the most energy-intensive manufacturing 

process. 

On September 25, we heard expert energy-industry witnesses 

testify as to the need for and the timeliness of this legislation. They 

specifically encouraged research, devolvement and demonstration 

to improve the quality, quantity, and alternative resources of industrial feed stocks. 

Using new, alternative energy technologies and achieving greater 

energy efficiency in our nation’s most energy-intensive industries, 

the Industrial Technologies Program is already widely recognized 

for producing a number of high-quality, market-ready technological 

advances that have saved industry billions in energy costs, and 

consequently preserved American jobs. It also serves as a training 

ground for the next generation of energy and industrial engineers, 

training over 240 students a years. 

Unfortunately, we have seen the budget for this program drop 

rapidly in the last few years, down almost 70 percent from 2001. 

This legislation is needed to continue supporting the successes of 

this program, while shifting the funding levels to reflect our priorities to ensure energy efficiency and environment performance 

through industrial efficiency research. These efforts not only improve the bottom line of a wide variety industries, but enhance the 

quality of life for American workers, families, and the communities 

they serve. 

I ask my colleagues to support this important legislation, and I 

now recognize Mr. Inglis to present any remarks on the bill. 

Mr. INGLIS. Only this, Mr. Chairman, a question for the record: 

it appears that the version in front of us today has a bill number 

added to it, which was not in the discussion draft that was circulated. I just want to make sure that the version that we are 

using is identical to the introduced version in order to prevent any 

confusion moving forward. Is the October 4, 2007, 8:22 p.m., 

version identical to the version that was introduced? 

Chairman LAMPSON. It is the same. 

Mr. INGLIS. Thank you, Mr. Chairman. 

Chairman LAMPSON. Thank you, Mr. Inglis. Does anyone else 

wish to be recognized on this bill? Anyone else wish to be recognized on the bill? Seeing none, I ask unanimous consent that the 

bill is considered as read and open to amendment at any point, and 

that the Members proceed with the amendments in the order of the 

roster. Without objection, it is so ordered. 

There are no amendments, and at this point, we do not have a 

quorum, I don’t believe to make our vote. Can we roll this vote and 

go to the next bill then? 

Mr. BARTLETT. Can we, by unanimous consent, waive the quorum 

rule? 

Chairman LAMPSON. If there is no objection, we may go forward, 

yes. 

Mr. BARTLETT. I ask unanimous consent we waive the quorum 

rule and go forward. 


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Chairman LAMPSON. Is there objection? Seeing none, we will proceed. Turning to H.R. 3775, I recognize Mr. McNerney to offer a 

motion. 

Mr. MCNERNEY. Mr. Chairman, I move that the Committee favorably report H.R. 3775 to the Full Committee. Furthermore, I 

move that the staff be instructed to prepare the Subcommittee legislative report and make necessary technical and conforming 

changes to the bill, in accordance with the recommendations of the 

Subcommittee. 

Chairman LAMPSON. The question is on the motion to report the 

bill favorably. Those in favor of the motion will signify by saying 

aye; those opposed, no. The ayes have it, and the bill is favorably 

reported. 

Without objection, the motion to reconsider is laid upon the table. 

The Subcommittee Members may submit additional or Minority 

views on the measure. 

I want to thank the Members for their attendance. This concludes our Subcommittee markup. We are adjourned. Thank you. 

[Whereupon, at 2:25 p.m., the Subcommittee was adjourned.] 


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Appendix: 

H.R. 3775, SECTION-BY-SECTION: DISCUSSION DRAFT


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SECTION-BY-SECTION: DISCUSSION DRAFT

Industrial Energy Efficiency Research and Development Act 

of 2007 

Section 1. Short Title 

‘‘The Industrial Energy Efficiency Research and Development Act of 2007’’

Section 2. Findings 

The U.S. Industrial sector accounts for more energy use (32 percent) than the residential, commercial, or transportation sectors. Industries have almost reached optimal energy efficiencies and new innovations and technologies’ research, development, and demonstration are necessary to increase energy efficiency and diversify 

energy and feedstock sources. 

Section 3. Industrial Technologies Program 

Establishes a program within the Department of Energy to work with energy-intensive industries, industry trade associations, and institutions of higher education 

to conduct cost-shared research, development, demonstration, and commercial application activities for new innovations and technologies to enhance industrial efficiency and economic competitiveness of U.S. industrial sector. 

Defines the activities of the program to include: research to improve the quality 

and quantity of feedstocks recovered from waste streams; to develop alternative resources for use as industrial feedstocks; developing alternative energy sources to 

supply heat and power for energy-intensive industries; and achieve overall energy 

efficiency in manufacturing processes. 

Section 4. University-Based Industrial Research and Assessment Centers 

Requires the Secretary to fund University-based Industrial Research and Assessment Centers to aid small-and medium sized manufacturers by identifying opportunities to optimize their energy efficiency and improve environmental performance 

through advanced technologies, to serve as a resource for technical data, and to 

train engineering and research students to conduct energy assessments. 

Section 5. Authorization of Appropriations 

$150 million is authorized for each fiscal year 2009–2013. 


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XXII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 3775, THE INDUSTRIAL ENERGY EFFICIENCY RESEARCH 

AND DEVELOPMENT ACT OF 2007 

TUESDAY, OCTOBER 16, 2007 

HOUSE OF REPRESENTATIVES, COMMITTEE ON SCIENCE AND TECHNOLOGY, Washington, DC. 

The Committee met, pursuant to call, at 10:07 a.m., in Room 

2318 of the Rayburn House Office Building, Hon. Bart Gordon 

[Chairman of the Committee] presiding. 

Chairman GORDON. Good morning, everyone. Pursuant to notice 

the Committee on Science and Technology meets to consider the 

following measures; H.R. 3776, the Energy Storage Technology Advancement Act of 2007, and H.R. 3775, the Industrial Energy Efficiency Research and Development Act of 2007. 

We will put the Committee on notice. We originally also were 

going to deal with a bill from Mr. Sexton today, but apparently it 

is not ready, and we will be doing it next week. So I assume everybody is working, and we will get that ready to go. 

We will now proceed with the markup, and I will begin with a 

brief statement. Today the Science and Technology Committee will 

consider two bills. The first is the Energy Storage Technology Advancement Act, H.R. 3776, and I would like to thank my friend, 

Ranking Member Hall, for his interest in this important issue and 

the work he and his staff have put into the bill. 

H.R. 3776 includes provisions from a bill Mr. Hall introduced 

earlier this year, and I am glad we could incorporate that into it. 

I will offer a Manager’s amendment to H.R. 3776, which makes 

some technical changes and other improvements to the bill, and I 

would like to thank Mr. Hall, Ms. Biggert, Mr. Inglis, and their 

staffs for working with us to develop the amendment. 

The second bill we will markup today is the Industrial Energy 

Efficiency Research and Development Act, H.R. 3775. 

H.R. 3775 was introduced by Energy and Environment Subcommittee Chairman Nick Lampson. I understand Chairman 

Lampson and Ranking Member Inglis have worked together on a 

Manager’s amendment that will make several changes to the introduced legislation. 

And I am glad to see the Committee tackle such and important 

and under-served area as this, and I know Mr. Lampson has 

worked hard with the industry, universities, DOE, and the minority to make this a good bill. 


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I now recognize Mr. Hall to present his opening remarks. 

[The prepared statement of Chairman Gordon follows:] 

PREPARED STATEMENT OF CHAIRMAN BART GORDON

Today, the Science and Technology Committee will consider two bills. 

The first is the Energy Storage Technology Advancement Act, H.R. 3776 which I 

introduced last week. 

I would like to thank my friend from Texas, Ranking Member Hall, for his interest in this important issue and the work he and his staff put into this bill. H.R. 

3776 includes provisions from a bill Mr. Hall introduced earlier this year, and I am 

glad we could incorporate them. 

Advancing the field of energy storage technologies brings with it several environmental, economic and security-related benefits, and it is critical that the U.S. build 

up and maintain a competitive industrial capability in this sector. 

Establishing an aggressive research program to is vital to advancing the development and deployment of energy storage technologies for use in electric drive vehicles 

and stationary applications that improve operation of our electricity delivery system. 

I will offer a Manager’s amendment to H.R. 3776 which makes some technical 

changes and other improvements to the bill. I would like to thank Mr. Hall, Mrs. 

Biggert, Mr. Inglis and their staffs for working with us to develop the amendment. 

The second bill we will markup today is the Industrial Energy Efficiency Research 

and Development Act, H.R. 3775. 

H.R. 3775 was introduced by Energy and Environment Subcommittee Chairman 

Nick Lampson. I understand Chairman Lampson and Ranking Member Inglis have 

worked together on a Manager’s amendment that will make several changes to the 

introduced legislation. 

I am glad to see the Committee tackle such an important and under-served area 

as this, and I know Mr. Lampson has worked hard with industry, universities, DOE, 

and the Minority to make this a good bill. 

Mr. HALL. Thank you, Mr. Chairman, and I would like to add my 

support to the two bills that we are marking up today. Both of 

them work towards efficiently using our country’s energy resources. 

The Industrial Energy Efficiency Research and Development Act 

will reinforce the good work the Department of Energy is currently 

doing in the Industrial Technologies Program to help American 

companies lower their use of energy in the production of their products and in the running of their plants and their businesses, which 

is very important. 

The Energy Storage Technology Advancement Act will also help 

our country use energy more efficiently in that it establishes a program at the Department of Energy to develop energy storage devices for stationary and vehicular applications. 

This will allow our country to utilize renewable energy sources 

to the maximum extent possible and allow for traditional generation to become even more efficient as energy storage devices will 

reduce the need for inefficient and expensive power plants to be 

ramped up during times of high energy demand. 

The bill, Mr. Chairman, will also help pave the way toward the 

development of plug-in hybrid vehicles by furthering research on 

the storage system necessary to make the vehicles a viable, widespread transportation option. 

I introduced similar energy storage legislation earlier this year. 

Mr. Chairman, I really want to thank you for including a lot of my 

language in the version that is before us today. 

And I yield back my time. 

[The prepared statement of Mr. Hall follows:] 


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PREPARED STATEMENT OF REPRESENTATIVE RALPH M. HALL

Mr. Chairman, I would like to add my support to the two bills we are marking 

up today. Both of them work towards efficiently using our country’s energy resources. The Industrial Energy Efficiency Research and Development Act will reinforce the good work the Department of Energy is currently doing in the Industrial 

Technologies Program to help American companies lower their use of energy in the 

production of their products and in the running of their plants and businesses. 

The Energy Storage Technology Advancement Act will also help our country use 

energy more efficiently in that it establishes a program at the Department of Energy to develop energy storage devices for stationary and vehicular applications. 

This will allow our country to utilize renewable energy sources to the maximum extent possible and allow for traditional generation to become even more efficient as 

energy storage devices will reduce the need for inefficient and expensive power 

plants to be ramped up during times of high energy demand. The bill will also help 

pave the way toward the development of plug-in hybrid vehicles by furthering research on the storage systems necessary to make the vehicles a viable, widespread 

transportation option. 

I introduced similar energy storage legislation earlier this year, and I would like 

to thank Chairman Gordon for including much of my language in this version before 

us today. 

I yield back the balance of my time. 

Chairman GORDON. Thank you, Mr. Hall, and now without objection Members may place statements in the record at this point. 

We will now consider H.R. 3775, the Industrial Energy Efficiency 

Research and Development Act of 2007. 

I yield to the Chairman of Energy and Environmental Subcommittee, Mr. Lampson, five minutes to describe his bill. 

Mr. LAMPSON. Thank you, Mr. Chairman, for bringing this bill 

up today for a Full Committee markup. 

This bill authorizes and expands the Department of Energy’s Industrial Technologies Program through better coordination of interdepartmental research, enhancing the Industrial Assessment Centers Program at universities, and supporting more research and development of new innovations and technologies as they relate to efficiency and environmental improvements of most energy-intensive 

manufacturing processes. 

On September 25 we heard expert energy industry witnesses testify as to the need for and timeliness of this legislation. I introduced the bill on the 9th of October, and last week we marked up, 

marked the bill up in Subcommittee. 

The Industrial Technologies Program is already widely recognized for producing a number of high-quality, market-ready technological advances that have saved industry literally billions in energy costs. Consequently, making these industries more competitive 

and preserving American jobs. 

Unfortunately, we have seen the budget for this program drop 

rapidly in the last few years. This legislation is needed to continue 

supporting the successes of this program while shifting the funding 

levels to reflect our priorities to ensure energy efficiency, environmental performance, and competitiveness through industrial efficiency research and development. 

I ask my colleagues to support this important legislation. 

I yield back my time. 

[The prepared statement of Mr. Lampson follows:] 

PREPARED STATEMENT OF REPRESENTATIVE NICK LAMPSON

Thank you, Chairman, for bringing this bill up today for Full Committee markup. 


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This bill authorizes and expands the Department of Energy’s Industrial Technologies Program through better coordination of interdepartmental research; enhancing the Industrial Assessment Centers program at universities; and supporting 

more research and development of new innovations and technologies as they relate 

to efficiency and environmental improvements of the most energy-intensive manufacturing processes. 

On September 25 we heard expert energy industry witnesses testify as to the need 

for and timeliness of this legislation. I introduced this bill on the 9th of October, 

and last week we marked this bill up in Subcommittee. 

The Industrial Technologies Program is already widely recognized for producing 

a number of high quality market-ready technological advances that have saved industry billions in energy costs, consequently making these industries more competitive and preserving American jobs. Unfortunately, we have seen the budget for this 

program drop rapidly in the last few years. 

This legislation is needed to continue supporting the successes of this program 

while shifting the funding levels to reflect our priorities to ensure energy efficiency, 

environmental performance, and competitiveness through industrial efficiency research and development. 

I ask my colleagues to support this important legislation. 

Chairman GORDON. Mr. Hall is recognized for any remarks on 

the bill. 

Mr. HALL. Mr. Chairman, I am in full agreement with it. I yield 

back my time. 

Chairman GORDON. Does anyone else wish to be recognized? 

I ask unanimous consent the resolution is considered as read and 

open to amendment at any point and that Members proceed with 

the amendments in the order of the roster. 

Without objection, so ordered. 

The first amendment on the roster is a Manager’s amendment offered by Mr. Lampson. Are you ready to proceed? 

Mr. LAMPSON. Yes, I am, Mr. Chairman. I have an amendment 

at the desk. 

Chairman GORDON. The Clerk will report the amendment. 

The CLERK. Amendment to H.R. 3775 offered by Mr. Lampson of 

Texas and Mr. Inglis of South Carolina. 

Chairman GORDON. I ask unanimous consent to dispense with 

the reading. 

Without objection, so ordered. 

I recognize the gentleman from Texas for five minutes to explain 

his amendment. 

Mr. LAMPSON. Mr. Chairman, this amendment incorporates suggestions by witnesses at our hearing and outside stakeholders who 

provided comments on the bill, and I want to thank Mr. Inglis for 

working with us on this amendment that makes some minor corrections and additions to the bill. 

We have added an additional finding to further highlight the 

past successes of the program and working with certain energy-intensive industries. 

In addition, this amendment strikes Sub-Section C of Section 3 

to eliminate duplicative statements of authority already given to 

the Secretary of Energy. 

And finally, the amendment adds a biannual report to be submitted to Congress to provide added accountability and provide 

some specific documentation on how the program coordinates with 

the industrial sector. 


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And once again, I thank my colleague, Mr. Inglis, for working 

with me. I encourage all of our colleagues to support this amendment. 

And I yield back the balance of my time. 

[The prepared statement of Mr. Lampson follows:] 

PREPARED STATEMENT OF REPRESENTATIVE NICK LAMPSON

Mr. Chairman, I have an amendment at the desk. 

This amendment incorporates suggestions by witnesses at our hearing and outside 

stakeholders who provided comments on the bill. I want to thank Mr. Inglis for 

working with us on this amendment that makes some minor corrections and additions to the bill. 

We have added an additional finding to further highlight the past successes of the 

program in working with certain energy intensive industries. 

In addition, this amendment strikes subsection (c) of Section 3, to eliminate duplicative statements of authority already given to the Secretary of Energy. Finally, the 

amendment adds a biannual report to be submitted to Congress to provide added 

accountability and provide some specific documentation on how the program coordinates with the industrial sector. 

Once again, I thank my colleague, Mr. Inglis for working with me, and I encourage all of my colleagues to support this amendment. 

I yield back the balance of my time. 

Chairman GORDON. Does anyone else wish to be recognized? 

Mr. INGLIS. Just briefly. 

Chairman GORDON. Mr. Inglis is recognized. 

Mr. INGLIS. I just echo what Mr. Lampson said and add this. The 

Department of Energy is rightly focused on some exciting industries that are very sexy and may yield some real energy savings, 

but then there are also these existing industries that use a huge 

amount of energy that we hope they continue to focus in on, because that is where additional gains can be made. 

So while we go after things like high-tech industries and computers, technologies, applications, those sorts of things, we also 

need to continue to focus on the Nation’s steel, chemical, metal 

casting, forest products, glass, petroleum, mining, and other manufacturings that have a track record of joining public and private 

dollars to increase sufficiency and decrease energy consumption. 

I trust that that is what this amendment will help see that the 

Department of Energy focuses on these existing industries as well 

as the new and exciting ones. 

Thank you, Mr. Chairman. 

Chairman GORDON. Any further discussion? 

If no, the vote occurs on the amendment. All in favor, say aye. 

Those opposed, say no. The ayes have it. The amendment is agreed 

to. 

Are there other amendments? If no, then the vote is on the bill, 

H.R. 3775 as amended. All those in favor will say aye. All those 

opposed, no. In the opinion of the Chair the ayes have it. 

I recognize Mr. Hall to offer a motion. 

Mr. HALL. Mr. Chairman, I move that the Committee favorably 

report H.R. 3775 as amended to the House with the recommendation that the bill do pass. 

Furthermore, I move that the staff be instructed to make necessary technical and conforming changes and that the Chairman 

take all the necessary steps to bring the bill before the House for 

consideration. 

I yield back. 


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Chairman GORDON. The question is on the motion to report the 

bill favorably. Those in favor of the motion will signify by saying 

aye. Opposed, no. The ayes have it. The bill is favorably reported. 

Without objection the motion to reconsider is laid upon the table. 

Members will have two subsequent days in which to submit supplemental, Minority, or additional views on the measure, ending Friday, October the 19th, at 9:00 a.m. 

I move pursuant to Clause 1 of Rule 22 of the Rules of the House 

of Representatives that the Committee authorize the Committee to, 

Chairman to offer such motions as may be necessary in the House 

to adopt and pass H.R. 3775, Industrial Energy Efficiency Research 

and Development Act of 2007, as amended. 

Without objection, so ordered. 

Let me thank the Members for being here today. This is a good 

showing. These are two good bills, and they are really going to 

make us relevant in this, our Energy Bill, and I hope that all of 

you will go home and take credit for these, because these are well 

thought-out bipartisan bills. And now the Committee, unless there 

is, anyone else has any remarks, suggestions for today. If not, the 

Committee concludes. 

[Whereupon, at 10:35 a.m., the Committee was adjourned.] 


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Appendix: 

SUBCOMMITTEE MARKUP REPORT, AMENDMENT ROSTER


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SUBCOMMITTEE ON ENERGY AND ENVIRONMENT 

REPORT FROM SUBCOMMITTEE MARKUP 

OCTOBER 10, 2007 

H.R. 3775, the Industrial Energy Efficiency Research and 

Development Act of 2007 

I. Purpose 

The purpose of this bill is to authorize and support research, development, demonstration, and commercial application of new industrial processes and technologies 

that will optimize energy efficiency and environmental performance of energy intensive industries; to enhance research and development through better coordination 

of interdepartmental research; and to expand Industrial Assessment Centers programs at universities. 

II. Background and Need for Legislation 

An expanding economy, growing population, and rising standard of living create 

rapidly growing demands for energy, making energy conservation a key national 

goal. In the U.S. industry is responsible for more than one-third of all energy consumed, the large majority of which is consumed by manufacturing industries such 

as chemical, glass and metals production, mining, petroleum refining, and forest and 

paper products. These industries require very large amounts of energy per unit of 

production, making them particularly susceptible to high energy prices. These and 

other energy-intensive industries are ideal candidates on which to focus federal 

R&D efforts and apply new technologies increase efficiency, raise productivity, reduce wastes, and trim costs. 

The Energy Efficiency and Renewable Energy’s (EERE) Industrial Technologies 

Program (ITP) at the Department of Energy (DOE), works to improve the energy 

intensity of U.S. industry through coordinated research and development and dissemination of innovative energy efficiency technologies and practices. The ITP invests in high-risk, high-value cost-shared R&D projects to reduce industrial energy 

use and process waste streams, while stimulating productivity and growth. Competitive solicitations are the principal mechanism used by ITP to conduct cost-shared 

R&D. Solicitations reflect the priorities of the Program and selection of projects follows merit-based criteria that emphasize projected energy, environmental, and economic benefits. In addition, ITP makes available information and resources on other 

financial assistance and research opportunities and case studies from past ITP 

projects. The ITP portfolio details over 1,000 technology development projects in 

which ITP has been involved. 

The Industrial Technologies Program claims numerous successes. The ITP is considered one of the most effective DOE programs at transferring technologies, with 

over 170 technologies reaching the commercial market. An estimated 13,000 U.S. 

manufacturing plants have been improved through the ITP technology delivery effort. Nearly five quadrillion Btu of energy (equal to approximately $23 billion) of energy savings are attributed to the program since its inception, with 366 trillion Btu 

saved in 2004 alone. 

The ITP also sponsors 26 University-Based Industrial Assessment Centers (IACs) 

that provide no-cost energy assessments primarily to small-and medium-sized manufacturers. Assessments are conducted by teams of faculty and students, and involve 

examinations of potential savings from energy efficiency improvements, waste minimization and pollution prevention, and productivity improvement. The average expected savings per assessment is fifty to seventy thousand dollars, with much larger 

savings possible with large operations. Companies are in turn encouraged to replicate accomplishments and share results. 

By operating through university engineering programs the IACs serve as a training ground for the next-generation of energy and industrial engineers. Roughly 240 

students receive training through the program each year. When budgets for the program were higher 38 IACs operated around the country, compared to the 26 in operation today. 

While the U.S. industrial sector has become much more energy efficient over the 

past 30 years, there are still ample opportunities to achieve efficiency gains. However, energy-intensive industries face enormous competitive pressures that make it 

difficult to make the necessary R&D investments in technology development. Energy-intensive industries tend to exhibit relatively low levels of R&D spending, and 

are often unwilling to accept the risks associated with undertaking complex capitalintensive technology development and implementation. Constantly changing market 


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conditions, energy prices, and other business concerns affect the ability and willingness of industry to pursue energy efficiency opportunities. As the role of energy in 

industry changes, the ITP should have the resources to sustain and expand operations, adapt, and reshape its strategy where needed. Without a sustained commitment by the private and public sectors to invest in technology R&D and adopt new 

technologies, the ability to close the gap between U.S. energy supply and demand 

will be greatly limited. 

The budget for Industrial Technologies Program has decreased dramatically in recent years. The Fiscal Year 2007 budget request for Industrial Technologies was 

$45.6 million, an $11.3 million reduction from the Fiscal Year 2006 Appropriation. 

By comparison, appropriated levels as recently as Fiscal Year 2000 were as high as 

$175 million. These funding levels reflect a dramatic shift in priorities away from 

industrial efficiency R&D. This legislation is needed to ensure continued gains in 

industrial energy efficiency and environmental performance through research and 

development. 

III. Subcommittee Actions 

The Energy and Environment Subcommittee held a hearing on Tuesday, September 25, 2007 to hear testimony relevant to the Industrial Technologies Program 

and to receive comments on a discussion draft of a bill to authorize funding and provide guidelines for the program. The Subcommittee heard from four witnesses representing diverse viewpoints on the program: 

• Mr. Malcolm Verdict, C.E.M., Associate Director of the Energy Systems 

Laboratory within the Texas Engineering Experiment Station (TEES) at Texas 

A&M University. 

• Mr. Fred Moore, Global Director of Manufacturing and Technology for Dow 

Chemical’s Energy Business, and Chairman of the Energy Efficiency Task Force 

of the National Association of Manufacturers. 

• Mr. Lawrence Kavanagh, Vice President of Manufacturing and Technology 

for the American Iron and Steel Institute (AISI). 

• Mr. Paul Cicio, President at Industrial Energy Consumers of America. 

On October 9, 2007, Representative Nick Lampson, Chairman of the Energy and 

Environment Subcommittee introduced H.R. 3775, the Industrial Energy Efficiency 

Research and Development Act of 2007. 

The Subcommittee on Energy and Environment met to consider H.R. 3775 on October 10, 2007, with no amendments to the bill. Mr. McNerney moved that the Subcommittee favorably report the bill, H.R. 3775, to the Full Committee on Science 

and Technology. The motion was agreed to by a voice vote. 

IV. Summary of Major Provisions 

H.R. 3775 authorizes $150 million for each fiscal year 2009092013 to the Department of Energy to support research, development, demonstration, and commercial 

application of new industrial processes and technologies to optimize energy efficiency and environmental performance of the U.S. industrial sector, and expand the 

Industrial Assessment Centers program at universities. The bill specifically encourages research, development and demonstration to improve the quality, quantity, and 

alternative resources of industrial feedstocks; using new alternative energy technologies; and achieving greater energy efficiency in steam, power, control system, 

and process heat technologies in energy-intensive industries. H.R. 3775 also allows 

for competitive awards to individuals and small businesses for novel energy savings 

concepts and inventions. H.R. 3775 enhances research and development efforts 

through cooperation with energy intensive industries, industry trade associations, 

and institutions of higher education and through better coordination of interdepartmental research as well as with other federal agencies. 

V. Section-by-Section Analysis of the bill as reported by the Subcommittee 

SECTION 1. SHORT TITLE 

‘‘The Industrial Energy Efficiency Research and Development Act of 2007’’

SEC. 2. FINDINGS 

The U.S. Industrial sector accounts for more energy use (32 percent) than the residential, commercial, or transportation sectors. Industries have almost reached optimal energy efficiencies and new innovations and technologies’ research, development, and demonstration are necessary to increase energy efficiency and diversify 

energy and feedstock sources. 


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SEC. 3. INDUSTRIAL TECHNOLOGIES PROGRAM 

Establishes a program within the Department of Energy to work with energy-intensive industries, industry trade associations, and institutions of higher education 

to conduct cost-shared research, development, demonstration, and commercial application activities for new innovations and technologies to enhance industrial efficiency and economic competitiveness of U.S. industrial sector. 

Defines the activities of the program to include: research to improve the quality 

and quantity of feedstocks recovered from waste streams; to develop alternative resources for use as industrial feedstocks; developing alternative energy sources to 

supply heat and power for energy-intensive industries; and achieve overall energy 

efficiency in manufacturing processes. 

SEC. 4. UNIVERSITY-BASED INDUSTRIAL RESEARCH AND ASSESSMENT 

CENTERS 

Requires the Secretary to fund University-based Industrial Research and Assessment Centers to aid small and medium sized manufacturers by identifying opportunities to optimize their energy efficiency and improve environmental performance 

through advanced technologies, to serve as a resource for technical data, and to 

train engineering and research students to conduct energy assessments. 

SEC. 5. AUTHORIZATION OF APPROPRIATIONS 

$150 million is authorized for each fiscal year 2009–2013. 


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