IB 

Union Calendar No. 305 

109TH CONGRESS 

2D SESSION H. R. 2730 

[Report No. 109–543] 

To establish a grant program to fund eligible joint ventures between United 

States and Israeli businesses and academic persons, to establish the 

International Energy Advisory Board, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2005 

Mr. SHADEGG (for himself, Mr. SHERMAN, Mr. KING of New York, Mr. PASTOR, Mr. BURTON of Indiana, Mr. RENZI, Mr. MILLER of Florida, Mr. 

CANNON, Mr. PALLONE, Mr. ENGEL, Mr. CROWLEY, Mr. GORDON, Mr. 

KENNEDY of Rhode Island, Ms. BERKLEY, Mr. MCNULTY, Mrs. 

MALONEY, Mr. WAXMAN, and Ms. SCHAKOWSKY) introduced the following bill; which was referred to the Committee on Energy and Commerce 

JUNE 29, 2006 

Additional sponsors: Mr. MARSHALL, Mr. MEEK of Florida, Mr. OWENS, Mr. 

CHANDLER, Mr. ANDREWS, Mrs. MCCARTHY, Mr. GRIJALVA, Mr. HOLT, 

Ms. ROS-LEHTINEN, Mr. ROTHMAN, Mr. GENE GREEN of Texas, Mr. 

SKELTON, Mr. BERMAN, Mr. CASE, Mr. BISHOP of New York, Mr. RANGEL, Mr. DENT, Mr. NORWOOD, Mr. FOSSELLA, Mr. ROGERS of Michigan, Mr. DOYLE, Mr. HIGGINS, Mr. WEXLER, Ms. SCHWARTZ of Pennsylvania, Mr. FERGUSON, Mr. BARROW, Ms. WASSERMAN SCHULTZ, Mr. 

INSLEE, Mr. SCHWARZ of Michigan, Mr. RAMSTAD, Mr. HONDA, Mr. 

NADLER, Mr. ISRAEL, Mr. MEEKS of New York, Ms. HERSETH, Mr. 

BROWN of Ohio, Mr. BOYD, Mr. LINDER, Mrs. DAVIS of California, Mr. 

FRANKS of Arizona, Mr. DAVIS of Alabama, Mr. BISHOP of Georgia, Mrs. 

BONO, Mrs. KELLY, Mrs. TAUSCHER, Mr. CRENSHAW, Mrs. NORTHUP, 

Ms. CORRINE BROWN of Florida, Mr. CARDIN, Mr. FILNER, Mr. BROWN

of South Carolina, Mr. CALVERT, Mrs. MYRICK, Mr. CARDOZA, Mr. 

LANGEVIN, Mr. SMITH of New Jersey, Mr. WILSON of South Carolina, 

Mr. GERLACH, Ms. DELAURO, Mr. DAVIS of Kentucky, Mr. GONZALEZ, 

Mr. ROSS, Mr. KIRK, Mr. SHAYS, Mr. SAXTON, Ms. LINDA T. SA ́NCHEZ

of California, Mr. BLUMENAUER, Mr. TOWNS, Mr. STUPAK, Mr. 


ccoleman on PROD1PC71 with BILLS
2 

•HR 2730 RH 

MELANCON, Mr. SALAZAR, Mr. BOSWELL, Mr. EMANUEL, Mr. PETERSON

of Minnesota, Ms. HARMAN, Mr. MICHAUD, Mr. SCHIFF, Mrs. LOWEY, 

Ms. WATSON, Mr. HASTINGS of Florida, Mr. SHIMKUS, Mr. WYNN, and 

Mr. LEWIS of Georgia 

JUNE 29, 2006 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

A BILL 

To establish a grant program to fund eligible joint ventures 

between United States and Israeli businesses and academic persons, to establish the International Energy Advisory Board, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘United States-Israel 

5 Energy Cooperation Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) it is in the highest national security inter9 ests of the United States to ensure secure access to 

10 reliable energy sources; 

11 (2) the United States relies heavily on the for12 eign supply of crude oil to meet the energy needs of 

13 the United States, currently importing 58 percent of 

14 the total oil requirements of the United States, of 

15 which 45 percent comes from member states of the 


ccoleman on PROD1PC71 with BILLS
3 

•HR 2730 RH 

1 Organization of Petroleum Exporting Countries 

2 (OPEC); 

3 (3) revenues from the sale of oil by some of 

4 these countries directly or indirectly provide funding 

5 for terrorism and propaganda hostile to the values 

6 of the United States and the West; 

7 (4) in the past, these countries have manipu8 lated the dependence of the United States on the oil 

9 supplies of these countries to exert undue influence 

10 on United States policy, as during the embargo of 

11 OPEC during 1973 on the sale of oil to the United 

12 States, which became a major factor in the ensuing 

13 recession; 

14 (5) research by the Energy Information Admin15 istration of the Department of Energy has shown 

16 that the dependence of the United States on foreign 

17 oil will increase by 33 percent over the next 20 

18 years; 

19 (6) a rise in the price of imported oil sufficient 

20 to increase gasoline prices by 10 cents per gallon at 

21 the pump would result in an additional outflow of 

22 $18,000,000,000 from the United States to oil-ex23 porting nations; 

24 (7) for economic and national security reasons, 

25 the United States should reduce, as soon as pracVerDate Aug 31 2005 04:02 Jun 30, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2730.RH H2730

ccoleman on PROD1PC71 with BILLS
4 

•HR 2730 RH 

1 ticable, the dependence of the United States on na2 tions that do not share the interests and values of 

3 the United States; 

4 (8) the State of Israel has been a steadfast ally 

5 and a close friend of the United States since the cre6 ation of Israel in 1948; 

7 (9) like the United States, Israel is a democracy 

8 that holds civil rights and liberties in the highest re9 gard and is a proponent of the democratic values of 

10 peace, freedom, and justice; 

11 (10) cooperation between the United States and 

12 Israel on such projects as the development of the 

13 Arrow Missile has resulted in mutual benefits to 

14 United States and Israeli security; 

15 (11) the special relationship between Israel and 

16 the United States has been and continues to be 

17 manifested in a variety of jointly-funded cooperative 

18 programs in the field of scientific research and de19 velopment, such as— 

20 (A) the United States-Israel Binational 

21 Science Foundation (BSF); 

22 (B) the United States-Israel Binational 

23 Agricultural Research and Development Fund 

24 (BARD); and 


ccoleman on PROD1PC71 with BILLS
5 

•HR 2730 RH 

1 (C) the United States-Israel Binational In2 dustrial Research and Development (BIRD) 

3 Foundation; 

4 (12) these programs, supported by the match5 ing contributions from the Government of Israel and 

6 the Government of the United States and directed 

7 by key scientists and academics from both countries, 

8 have made possible many scientific breakthroughs in 

9 the fields of life sciences, medicine, bioengineering, 

10 agriculture, biotechnology, communications, and oth11 ers; 

12 (13) on February 1, 1996, United States Sec13 retary of Energy Hazel R. O’Leary and Israeli Min14 ister of Energy and Infrastructure Gonen Segev 

15 signed the Agreement Between the Department of 

16 Energy of the United States of America and the 

17 Ministry of Energy and Infrastructure of Israel Con18 cerning Energy Cooperation, to establish a frame19 work for collaboration between the United States 

20 and Israel in energy research and development ac21 tivities; 

22 (14) Israeli scientists and researchers have long 

23 been at the forefront of research and development in 

24 the field of alternative renewable energy sources; 


ccoleman on PROD1PC71 with BILLS
6 

•HR 2730 RH 

1 (15) many of the top corporations of the world 

2 have recognized the technological and scientific ex3 pertise of Israel by locating important research and 

4 development facilities in Israel; 

5 (16) among the technological breakthroughs 

6 made by Israeli scientists and researchers in the 

7 field of alternative, renewable energy sources are— 

8 (A) the development of a cathode that uses 

9 hexavalent iron salts that accept 3 electrons per 

10 ion and enable rechargeable batteries to provide 

11 3 times as much electricity as existing recharge12 able batteries; 

13 (B) the development of a technique that 

14 vastly increases the efficiency of using solar en15 ergy to generate hydrogen for use in energy 

16 cells; and 

17 (C) the development of a novel membrane 

18 used in new and powerful direct-oxidant fuel 

19 cells that is capable of competing favorably with 

20 hydrogen fuel cells and traditional internal com21 bustion engines; and 

22 (17) cooperation between the United States and 

23 Israel in the field of research and development of al24 ternative renewable energy sources would be in the 


ccoleman on PROD1PC71 with BILLS
7 

•HR 2730 RH 

1 interests of both countries, and both countries stand 

2 to gain much from such cooperation. 

3 SEC. 3. GRANT PROGRAM. 

4 (a) ESTABLISHMENT.—The Secretary, in consulta5 tion with the BIRD or BSF, shall establish a grant pro6 gram to award grants to eligible entities. 

7 (b) APPLICATION.— 

8 (1) SUBMISSION OF APPLICATIONS.—To receive 

9 a grant under this section, an eligible entity shall 

10 submit an application to the Secretary, in consulta11 tion with the BIRD or BSF, containing such infor12 mation and assurances as the Secretary may require. 

13 (2) SELECTION OF ELIGIBLE ENTITIES.—The 

14 Secretary, in consultation with the Directors of the 

15 BIRD and BSF, may review any application sub16 mitted by any eligible entity and select any eligible 

17 entity meeting criteria established by the Secretary, 

18 in consultation with the Advisory Board, for a grant 

19 under this section. 

20 (c) AMOUNT OF GRANT.—The amount of each grant 

21 awarded for a fiscal year under this section shall be deter22 mined by the Secretary, in consultation with the BIRD 

23 or BSF. 

24 (d) RECOUPMENT.— 


ccoleman on PROD1PC71 with BILLS
8 

•HR 2730 RH 

1 (1) IN GENERAL.—Not later than 180 days 

2 after the date of enactment of this Act, the Sec3 retary shall establish procedures and criteria for 

4 recoupment in connection with any eligible project 

5 carried out by an eligible entity that receives a grant 

6 under this section, which has led to the development 

7 of a product or process which is marketed or used. 

8 (2) AMOUNT REQUIRED.— 

9 (A) Except as provided in subparagraph 

10 (B), such recoupment shall be required as a 

11 condition for award and be proportional to the 

12 Federal share of the costs of such project, and 

13 shall be derived from the proceeds of royalties 

14 or licensing fees received in connection with 

15 such product or process. 

16 (B) In the case where a product or process 

17 is used by the recipient of a grant under this 

18 section for the production and sale of its own 

19 products or processes, the recoupment shall 

20 consist of a payment equivalent to the payment 

21 which would be made under subparagraph (A). 

22 (3) WAIVER.—The Secretary may at any time 

23 waive or defer all or some of the recoupment re24 quirements of this subsection as necessary, depend25 ing on— 


ccoleman on PROD1PC71 with BILLS
9 

•HR 2730 RH 

1 (A) the commercial competitiveness of the 

2 entity or entities developing or using the prod3 uct or process; 

4 (B) the profitability of the project; and 

5 (C) the commercial viability of the product 

6 or process utilized. 

7 (e) PRIVATE FUNDS.—The Secretary may accept 

8 contributions of funds from private sources to carry out 

9 this Act. 

10 (f) REPORT.—Not later than 180 days after receiving 

11 a grant under this section, each recipient shall submit a 

12 report to the Secretary— 

13 (1) documenting how the recipient used the 

14 grant funds; and 

15 (2) evaluating the level of success of each 

16 project funded by the grant. 

17 SEC. 4. INTERNATIONAL ENERGY ADVISORY BOARD. 

18 (a) ESTABLISHMENT.—There is established in the 

19 Department of Energy an International Energy Advisory 

20 Board. 

21 (b) DUTIES.—The Advisory Board shall advise the 

22 Secretary on— 

23 (1) criteria for the recipients of grants awarded 

24 under the grant program established under section 

25 4(a); 


ccoleman on PROD1PC71 with BILLS
10 

•HR 2730 RH 

1 (2) the total amount of grant money to be 

2 awarded to all grantees selected by the Secretary, in 

3 consultation with the BIRD; and 

4 (3) the total amount of grant money to be 

5 awarded to all grantees selected by the Secretary, in 

6 consultation with the BSF, for each fiscal year. 

7 (c) MEMBERSHIP.— 

8 (1) COMPOSITION.—The Advisory Board shall 

9 be composed of— 

10 (A) 1 member appointed by the Secretary 

11 of Commerce; 

12 (B) 1 member appointed by the Secretary 

13 of Energy; and 

14 (C) 2 members who shall be Israeli citi15 zens, appointed by the Secretary of Energy 

16 after consultation with appropriate officials in 

17 the Israeli Government. 

18 (2) DEADLINE FOR APPOINTMENTS.—The ini19 tial appointments under paragraph (1) shall be 

20 made not later than 60 days after the date of enact21 ment of this Act. 

22 (3) TERM.—Each member of the Advisory 

23 Board shall be appointed for a term of 4 years. 


ccoleman on PROD1PC71 with BILLS
11 

•HR 2730 RH 

1 (4) VACANCIES.—A vacancy on the Advisory 

2 Board shall be filled in the manner in which the 

3 original appointment was made. 

4 (5) BASIC PAY.— 

5 (A) COMPENSATION.—A member of the 

6 Advisory Board shall serve without pay. 

7 (B) TRAVEL EXPENSES.—Each member of 

8 the Advisory Board shall receive travel ex9 penses, including per diem in lieu of subsist10 ence, in accordance with applicable provisions of 

11 subchapter I of chapter 57 of title 5, United 

12 States Code. 

13 (6) QUORUM.—Three members of the Advisory 

14 Board shall constitute a quorum. 

15 (7) CHAIRPERSON.—The Chairperson of the 

16 Advisory Board shall be designated by the Secretary 

17 of Energy at the time of the appointment. 

18 (8) MEETINGS.—The Advisory Board shall 

19 meet at least once annually at the call of the Chair20 person. 

21 (d) TERMINATION.—Section 14(a)(2)(B) of the Fed22 eral Advisory Committee Act (5 U.S.C. App.) shall not 

23 apply to the Advisory Board. 

24 SEC. 5. DEFINITIONS. 

25 In this Act: 


ccoleman on PROD1PC71 with BILLS
12 

•HR 2730 RH 

1 (1) ADVISORY BOARD.—The term ‘‘Advisory 

2 Board’’ means the International Energy Advisory 

3 Board established by section 4(a). 

4 (2) BIRD.—The term ‘‘BIRD’’ means the 

5 United States-Israel Binational Industrial Research 

6 and Development Foundation. 

7 (3) BSF.—The term ‘‘BSF’’ means the United 

8 States-Israel Binational Science Foundation. 

9 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti10 ty’’ means a joint venture comprised of both Israeli 

11 and United States private business entities or a joint 

12 venture comprised of both Israeli academic persons 

13 (who reside and work in Israel) and United States 

14 academic persons, that— 

15 (A) carries out an eligible project; and 

16 (B) is selected by the Secretary, in con17 sultation with the BIRD or BSF, using the cri18 teria established by the Secretary, in consulta19 tion with the Advisory Board. 

20 (5) ELIGIBLE PROJECT.—The term ‘‘eligible 

21 project’’ means a project to encourage cooperation 

22 between the United States and Israel on research, 

23 development, or commercialization of alternative en24 ergy, improved energy efficiency, or renewable en25 ergy sources. 


ccoleman on PROD1PC71 with BILLS
13 

•HR 2730 RH 

1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Energy, acting through the Assist3 ant Secretary of Energy for Energy Efficiency and 

4 Renewable Energy. 

5 SEC. 6. TERMINATION. 

6 The grant program established under section 3 and 

7 the Advisory Board shall terminate upon the expiration 

8 of the 7-year period which begins on the date of the enact9 ment of this Act. 

10 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

11 There is authorized to be appropriated to carry out 

12 this Act $20,000,000 for each of fiscal years 2006 through 

13 2012. 

14 SEC. 8. CONSTITUTIONAL AUTHORITY. 

15 The Constitutional authority on which this Act rests 

16 is the power of Congress to make all laws which shall be 

17 necessary and proper as enumerated in Article I, Section 

18 8 of the United States Constitution. 


ccoleman on PROD1PC71 with BILLS
Union Calendar No. 305 

109TH CONGRESS 

2D SESSION H. R. 2730 

[Report No. 109

–543] 

A BILL 

To establish a grant program to fund eligible joint 

other purposes. International Energy Advisory Board, and for nesses and academic persons, to establish the ventures between United States and Israeli busiJUNE 29, 2006 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


ccoleman on PROD1PC71 with BILLS