39–006 

113TH CONGRESS REPT. 113–341 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

TO AMEND THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 TO 

IMPROVE UNITED STATES-ISRAEL ENERGY COOPERATION, AND FOR 

OTHER PURPOSES 

FEBRUARY 5, 2014.—Ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 3683] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 3683) to amend the Energy Independence and Security Act of 2007 to improve United States-Israel energy cooperation, 

and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do 

pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 1 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 4 

Committee Consideration ........................................................................................ 4 

Committee Votes ...................................................................................................... 4 

Committee Oversight Findings ............................................................................... 4 

Statement of General Performance Goals and Objectives .................................... 4 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 4 

Committee Cost Estimate ....................................................................................... 4 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 6 

Duplication of Federal Programs ............................................................................ 6 

Disclosure of Directed Rule Makings ..................................................................... 7 

Advisory Committee Statement .............................................................................. 7 

Applicability to Legislative Branch ........................................................................ 7 

Section-by-Section Analysis of the Legislation ...................................................... 7 

Changes in Existing Law Made by the Bill, as Reported ..................................... 7 

PURPOSE AND SUMMARY

H.R. 3683, a bill to amend the Energy Independence and Security Act of 2007 to improve United States-Israel energy cooperation, 

mstockstill on DSK4VPTVN1PROD with HEARINGS

2 

1Founded in 1972, BSF is directed by a ten-person board (five American, and five Israeli) and operates out of Israel. BSF promotes US-Israeli scientific relations by awarding about $15 million annually in grants for American-Israeli research projects. 2 Established in 1977, BIRD’s purpose is to ‘‘stimulate, promote and support industrial R&D 

of mutual benefit to the U.S. and Israel.’’ Specifically, BIRD (1) matches services between American and Israeli private sector companies that seek to use industrial R&D to create an innovative product, and (2) provides funding for ‘‘up to 50 percent of project development and product 

commercialization costs.’’ 3 USISTF is a Washington, DC-based non-profit founded by the Department of Commerce and 

the Israeli Ministry of Industry, Trade and Labor to strengthen the US-Israeli ‘‘scientific and 

R&D relationship’’ through business collaboration. USISTF is the ‘‘funding and administrative 

arm’’ of the US-Israel Science and Technology Commission, which was established in 1994 to 

promote ‘‘scientific, technological, and economic cooperation’’ between the US and Israel. 

and for other purposes, was introduced by Representatives Upton, 

Waxman, Terry, Gene Green, and Bilirakis on December 10, 2013. 

The bill amends the Energy Independence and Security Act of 2007 

(EISA, Public Law 110–140, 41 U.S.C. 17337) to strengthen the collaboration between the United States and Israel on energy development and to bolster the existing United States-Israel energy relationship by encouraging increased cooperation between the two 

countries. The bill encourages inter-governmental collaboration in 

energy technology innovation, technology transfer, and analysis of 

geopolitical implications of new natural resource development, 

while also encouraging private sector business development. The 

bill also facilitates continued engagement between the countries to 

share best practices in a number of areas, including: research, development, and deployment of renewable energy and energy efficiency, energy infrastructure cybersecurity; environmental management of deep water exploration; and coastal protection and restoration. The bill also expands an existing United States-Israel grant 

program to include projects focused on natural gas and water efficiency. 

BACKGROUND AND NEED FOR LEGISLATION

U.S.-Israel energy relationship 

The United States and Israel have a long-standing relationship 

in joint energy research and development. The two countries entered into an Energy Research and Development Agreement in 

1984 and into a subsequent Energy Cooperation Agreement in 

1996. The later agreement established cooperation and exchange of 

scientific and technical information in a wide range of areas including renewable energy, fossil energy, and electric transmission. In 

addition, research cooperation entities exist covering a wide array 

of topics, notably through the United States-Israel Binational 

Science Foundation (BSF),1 the United States-Israel Binational Industrial Research and Development Foundation (BIRD),2 and 

United States-Israel Science and Technology Foundation 

(USISTF).3

Energy Independence and Security Act of 2007 

In December 2007, Congress passed the Energy Independence 

and Security Act of 2007 (EISA 2007). Section 917 of EISA 2007 

was included to further the energy cooperation of the two countries 

by establishing a U.S.-Israel energy cooperation partnership to support research, development, and deployment of energy efficiency 

and renewable energy measures. The provision included a grant 

program for joint ventures between United States and Israeli busimstockstill on DSK4VPTVN1PROD with HEARINGS

3 

4 U.S. Geological Survey, ‘‘Assessment of Undiscovered Oil and Gas Resources of the Levant 

Basin Province,’’ available at http://pubs.usgs.gov/fs/2010/3014/pdf/FS10-3014.pdf. 5Globes Israel Business News, ‘‘Oil and Gas Found at Gabriella, Yitzhak Licenses’’ (Mar. 13, 

2012), available at http://www.globes.co.il/serveen/globes/docview.asp?did=1000732741. 6 U.S. International Trade Administration, ‘‘Mission Statement Oil and Gas Trade Mission to 

Israel,’’ available at http://export.gov/trademissions/israel2012/eg_main_048039.asp#P11_3522. 

ness and academic persons in the areas of research, development, 

demonstration, and commercialization of renewable energy and energy efficiency. Section 917 of EISA 2007 has a statutory termination date that is 7 years after December 19, 2007, meaning the 

U.S.-Israel energy cooperation program will expire at the end of 

2014 if it is not extended. 

Fossil energy discoveries in Israel 

Since enactment of EISA 2007, significant new natural gas discoveries have been made in and around Israel. In 2009 and 2010, 

substantial natural gas discoveries were made off the coast of 

Israel in the Tamar and Leviathan fields. The Tamar and Leviathan fields potentially have the capacity to support Israel’s domestic gas consumption with reserves left for exports. The U.S. Geological Survey estimates that there are 122 trillion cubic feet (TCF) 

of recoverable gas in the region, most of it in Israeli waters.4 In 

March 2012, another offshore discovery was made northwest of Tel 

Aviv, with an estimated 1.8 TCF of natural gas.5 In total, Israel’s 

known offshore natural gas reserves are estimated around 30 trillion cubic feet. However, according to the U.S. International Trade 

Administration, ‘‘because Israel does not yet have the physical infrastructure and technical workforce to support this fast growing 

industry, local companies are eager to team up with U.S. companies.’’ 6

Need for legislation 

Recognizing that the United States and Israel are international 

partners, and that energy is essential to the economic and national 

security of both nations, continued cooperation on a broader range 

of energy-related issues is in the long term interests of both the 

United States and Israel. Indeed, the United States and Israel 

have cooperated in the past on energy projects benefiting both nations. Israeli scientists have undertaken research into alternative 

and renewable energy resources, and as described herein, significant new natural gas resources in and around Israel have been discovered. 

The U.S. government and U.S. businesses have significant expertise and experience in the responsible development of onshore and 

offshore gas resources, including the development and utilization of 

deep water gas technologies, hydraulic fracturing and horizontal 

drilling technologies. Thus, it benefits both countries to extend and 

expand the existing U.S.-Israel energy partnership provided under 

Section 917 of EISA 2007 to include natural gas technologies and 

environmental protection and restoration. H.R. 3683 provides the 

framework to ensure continued cooperation between the United 

States and Israel in these critical areas, as well as those areas 

originally contemplated under Section 917 of EISA 2007. 

mstockstill on DSK4VPTVN1PROD with HEARINGS

4 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On December 10 and 11, 2013, the Committee on Energy and 

Commerce met in open markup session and ordered H.R. 3683 favorably reported to the House, without amendment, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken in connection with ordering H.R. 3683 reported. 

A motion by Mr. Upton to order H.R. 3683 reported to the House, 

without amendment, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee made findings that are reflected 

in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

H.R. 3683 provides for greater cooperation between the United 

States and Israel on energy related activities. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 3683 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that 

H.R. 3683 contains no earmarks, limited tax benefits, or limited 

tariff benefits. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

mstockstill on DSK4VPTVN1PROD with HEARINGS

5 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, January 16, 2014. 

Hon. FRED UPTON, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3683, a bill to amend the 

Energy Independence and Security Act of 2007 to improve United 

States-Israel energy cooperation, and for other purposes. 

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

to provide them. The CBO staff contact is Megan Carroll. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 3683—A bill to amend the Energy Independence and Security 

Act of 2007 to improve United States-Israel energy cooperation, 

and for other purposes 

Summary: H.R. 3683 would reauthorize a grant program, administered by the Department of Energy (DOE), which supports joint 

ventures between U.S. and Israeli entities aimed at promoting certain energy-related technologies. CBO estimates that implementing 

H.R. 3683 would cost $10 million over the 2015–2019 period, assuming appropriation of the necessary amounts. Because enacting 

the legislation could affect net direct spending, pay-as-you-go procedures apply; however, CBO estimates that any such effects would 

be negligible. H.R. 3683 would not affect revenues. 

H.R. 3683 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 3683 is shown in the following table. The costs 

of this legislation fall within budget function 270 (energy). 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2014- 

2019 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ..................................... 0 2 2 2 2 2 10 

Estimated Outlays ....................................................... 0 2 2 2 2 2 10 

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

3683 will be enacted in fiscal year 2014. CBO estimates that implementing H.R. 3683 would cost $10 million over the 2015–2019 period. We also estimate that enacting the bill would increase both 

offsetting receipts and direct spending, but that any net changes in 

direct spending would be negligible. 

Spending subject to appropriation 

H.R. 3683 would extend and modify a provision of the Energy 

Independence and Security Act of 2007 that authorizes DOE to 

make grants to support joint ventures between U.S. and Israeli 

government units, businesses, academic institutions, or nonprofit 

mstockstill on DSK4VPTVN1PROD with HEARINGS

6 

entities to promote certain energy-related technologies. Current 

law authorizes DOE to provide such grants, through 2014, for 

projects related to energy-efficient and renewable technologies. 

H.R. 3683 would extend DOE’s authority to make such grants 

through 2024 and also expand the types of eligible projects to include those that utilize natural gas technologies and projects aimed 

at improving the energy efficiency of certain water treatment technologies. The bill also would authorize DOE to establish a joint 

United States-Israel Center to support additional energy-related 

collaboration between the two countries. 

According to DOE, appropriations for financial assistance to support energy-related collaboration between the U.S. and Israel have 

averaged about $1.5 million annually over the past five years. CBO 

estimates that, under H.R. 3683, DOE would spend slightly more— 

about $2 million annually—to continue assistance for projects using 

energy-efficient and renewable technologies, provide additional assistance for projects utilizing technologies that would become newly 

eligible for grants under the bill, and established the proposed center to support further collaboration between the United States and 

Israel. 

Direct spending 

By extending DOE’s authority to provide grants to support U.S.- 

Israeli energy collaboration, the legislation would also extend the 

agency’s authority to accept donations and spend those amounts, 

without further appropriation, for activities authorized by the bill. 

Based on information from DOE, CBO estimates that any such donations would be well below $500,000 in any year, and that any resulting net changes in direct spending would be negligible. 

Intergovernmental and private-sector impact: H.R. 3683 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Estimate prepared by: Federal Costs: Megan Carroll; Impact on 

state, local, and tribal governments: J’nell L. Blanco; Impact on the 

private sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 3683 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

mstockstill on DSK4VPTVN1PROD with HEARINGS

7 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that enacting H.R. 3683 specifically directs no rule makings within the meaning of 5 U.S.C. 551 to be 

completed. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation 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. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. United States-Israel energy cooperation 

Subsection (a) amends EISA to add findings regarding cooperation between the United States and Israel on energy related matters. 

Subsections (b), (c), and (d) amend the EISA section 917 grant 

program to include natural gas and improvement of energy efficiency and the overall performance of water desalination, wastewater treatment and reclamation, and other water treatment technologies. 

Subsection (e) permits the Secretary to enter into energy related 

cooperative agreements supporting and enhancing dialogue and 

planning involving international partnerships between the Department and the Government of Israel and its ministries, offices, and 

institutions. The subsection also permits the Secretary to establish 

a joint United States-Israel Center to further dialog and collaboration to develop energy efficiency, existing energy development programs, and more robust academic cooperation in energy innovation 

technology and engineering, water science, technology transfer, and 

analysis of geopolitical implications of new natural resource development and associated areas. 

Subsection (f) provides that the EISA section 917 grant program 

shall terminate on September 30, 2024. 

Section 2. United States-Israel Energy Cooperation Working Group 

Subsection (a) is a sense of Congress related to cooperation between the United States and Israel on energy security issues. 

Subsection (b) directs the Secretary of Energy and the Secretary 

of State to seek to establish an Energy Cooperation Working Group 

within the semi-annual United States-Israel Strategic Dialogue. 

Subsection (c) provides that the purpose of the Energy Cooperation Working Group is to strengthen dialogue between the United 

States and Israel on a range of energy issues. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

mstockstill on DSK4VPTVN1PROD with HEARINGS

8 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 

* * * * * * * 

TITLE IX—INTERNATIONAL ENERGY 

PROGRAMS 

* * * * * * * 

Subtitle A—Assistance to Promote Clean 

and Efficient Energy Technologies in 

Foreign Countries 

* * * * * * * 

SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION. 

(a) FINDINGS.—Congress finds that— 

(1) it is in the highest national security interests of the 

United States to develop ørenewable¿ covered energy sources; 

* * * * * * * 

(4) those programs have made øpossible many¿ possible— 

(A) many scientific, technological, and commercial breakthroughs in the fields of life sciences, medicine, bioengineering, agriculture, biotechnology, communications, 

and others; and 

(B) significant contributions to the development of renewable energy and energy efficiency through the established 

programs of the United States-Israel Binational Industrial 

Research and Development Foundation and the United 

States-Israel Binational Science Foundation; 

* * * * * * * 

(6) Israeli scientists and engineers are at the forefront of research and development in the field of ørenewable¿ covered energy sources; øand¿ 

(7) enhanced cooperation between the United States and 

Israel for the purpose of research and development of ørenewable¿ covered energy sources would be in the national interests 

of both countriesø.¿; 

(8) United States-Israel energy cooperation, and the development of natural resources by Israel, are strategic interests of the 

United States; 

(9) Israel is a strategic partner of the United States in water 

technology; 

(10) the United States can play a role in assisting Israel with 

regional safety and security issues; 

(11) the National Science Foundation of the United States 

should collaborate with the Israel Science Foundation; 

(12) the United States and Israel should strive to develop 

more robust academic cooperation in energy innovation techmstockstill on DSK4VPTVN1PROD with HEARINGS

9 

nology and engineering, water science, technology transfer, and 

analysis of geopolitical implications of new natural resource development and associated areas; 

(13) the United States supports the goals of the Alternative 

Fuels Administration of Israel; 

(14) the United States strongly urges open dialogue and continued mechanisms for regular engagement and encourages further cooperation between applicable departments, agencies, ministries, institutions of higher education, and the private sectors 

of the United States and Israel on energy security issues, including— 

(A) identifying policy priorities associated with the development of natural resources of Israel; 

(B) discussing best practices to secure cyber energy infrastructure; 

(C) best practice sharing; 

(D) leveraging natural gas to positively impact regional 

stability; 

(E) improving energy efficiency and the overall performance of water desalination, wastewater treatment and reclamation, and other water treatment technologies; 

(F) technical and environmental management of deepwater exploration and production; 

(G) coastal protection and restoration; 

(H) academic outreach and engagement; 

(I) private sector and business development engagement; 

(J) regulatory consultations; 

(K) leveraging alternative transportation fuels and technologies; and 

(L) any other areas determined appropriate by the United 

States and Israel; 

(15) the United States acknowledges the achievements and 

importance of the United States-Israel Binational Industrial 

Research and Development Foundation and the United StatesIsrael Binational Science Foundation and supports continued 

multiyear funding to ensure the continuity of the programs of 

the Foundations; and 

(16) the United States and Israel have a shared interest in 

addressing their immediate, near-term, and long-term energy 

and environmental challenges. 

(b) GRANT PROGRAM.— 

(1) ESTABLISHMENT.—In implementing the agreement entitled the ‘‘Agreement between the Department of Energy of the 

United States of America and the Ministry of Energy and Infrastructure of Israel Concerning Energy Cooperation’’, dated 

February 1, 1996, the Secretary shall establish a grant program in accordance with the requirements of sections 988 and 

989 of the Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) 

øto support research, development, and commercialization of 

renewable energy or energy efficiency¿ to support energy efficiency, established energy development programs, and research, 

development, and commercialization of covered energy. 

(2) øTYPES OF¿ COVERED ENERGY.—In carrying out paragraph (1), the Secretary may make grants to promote— 

mstockstill on DSK4VPTVN1PROD with HEARINGS

10 

(A) * * * 

* * * * * * * 

(F) wave and tidal energy; øand¿ 

(G) advanced battery technologyø.¿; 

(H) natural gas energy, including conventional and unconventional natural gas technologies and natural gas 

projects conducted by or in conjunction with the United 

States-Israel Binational Science Foundation, the United 

States-Israel Binational Industrial Research and Development Foundation, and the United States-Israel Science and 

Technology Foundation; and 

(I) improvement of energy efficiency and the overall performance of water desalination, wastewater treatment and 

reclamation, and other water treatment technologies. 

(3) ELIGIBLE APPLICANTS.—An applicant shall be eligible to 

receive a grant under this subsection if the project of the applicant— 

(A) addresses a requirement in the area of improved 

øenergy efficiency or renewable¿ covered energy sources, 

as determined by the Secretary; and 

* * * * * * * 

(c) INTERNATIONAL PARTNERSHIPS.— (1) IN GENERAL.—The Secretary may, subject to the availability of appropriations, enter into cooperative agreements supporting and enhancing dialogue and planning involving international partnerships between the Department and the Government of Israel and its ministries, offices, and institutions. The 

cooperative agreements shall include energy activities in addition to those involving research and development, and shall ensure that the shared technologies and other benefits of energy 

cooperation promote the domestic energy production of both nations. 

(2) FEDERAL SHARE.—The Secretary may not pay more than 

50 percent of the costs described in paragraph (1). 

(3) ANNUAL REPORTS.—The Secretary shall submit to the 

Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of 

the Senate an annual report that describes— 

(A) actions taken to carry out this subsection; and 

(B) any projects under this subsection for which the Secretary requests funding. 

(d) UNITED STATES-ISRAEL CENTER.—The Secretary may establish a joint United States-Israel Center based in an area of the 

United States with the experience, knowledge, and expertise in offshore energy development to further dialogue and collaboration to 

develop energy efficiency, existing energy development programs, 

and more robust academic cooperation in energy innovation technology and engineering, water science, technology transfer, and 

analysis of geopolitical implications of new natural resource development and associated areas. 

ø(c)¿ (e) TERMINATION.—The grant program and the advisory 

committee established under this section terminate on øthe date 

that is 7 years after the date of enactment of this Act¿ September 

30, 2024. 

mstockstill on DSK4VPTVN1PROD with HEARINGS

11 

ø(d) AUTHORIZATION OF APPROPRIATIONS.—The Secretary shall 

use amounts authorized to be appropriated under section 931 of the 

Energy Policy Act of 2005 (42 U.S.C. 16231) to carry out this section.¿ 

* * * * * * * 

Æ 

mstockstill on DSK4VPTVN1PROD with HEARINGS