49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–543 

UNITED STATES-ISRAEL ENERGY COOPERATION ACT 

JUNE 29, 2006.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BARTON of Texas, from the Committee on Energy and 

Commerce, submitted the following 

R E P O R T 

[To accompany H.R. 2730] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 2730) 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, having considered the same, report 

favorably thereon without amendment and recommend that the bill 

do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

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

Hearings ................................................................................................................... 2 

Committee Consideration ........................................................................................ 2 

Committee Votes ...................................................................................................... 2 

Committee Oversight Findings ............................................................................... 2 

Statement of General Performance Goals and Objectives .................................... 2 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

Committee Cost Estimate ....................................................................................... 3 

Congressional Budget Office Estimate ................................................................... 3 

Federal Mandates Statement ................................................................................. 4 

Advisory Committee Statement .............................................................................. 4 

Constitutional Authority Statement ...................................................................... 4 

Applicability to Legislative Branch ........................................................................ 4 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 5 

Exchange of Committee Correspondence ............................................................... 6 


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PURPOSE AND SUMMARY

The purpose of H.R. 2730, the United States-Israel Energy Cooperation Act, is to establish a program within the Department of 

Energy to provide grants for joint ventures between the United 

States and Israel concerning alternative energy, energy efficiency 

and renewable energy projects. 

BACKGROUND AND NEED FOR LEGISLATION

The United States needs access to reliable energy sources. Currently, the United States relies heavily on imported crude oil, much 

of which comes from the Organization of Petroleum Exporting 

Countries. Moreover, research by the Energy Information Administration has shown that U.S. dependence on imported oil will increase by 33 percent over the next twenty years. 

The United States and Israel have cooperated in the past on 

projects benefiting both nations. In 1996, the United States and 

Israel entered into an agreement to facilitate collaboration between 

the countries on energy research and development activities. Israeli 

scientists have undertaken research into alternative and renewable 

energy resources. Thus, it benefits both countries to cooperate in 

the research and development of alternative, renewable energy resources. H.R. 2730 provides the framework to expand the cooperation between the United States and Israel on renewable energy, alternative energy and energy efficiency. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On Tuesday, June 20, 2006, the Committee on Energy and Commerce met in open markup session and ordered H.R. 2730 reported 

to the House, without amendment, by a voice vote, a quorum being 

present. 

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. 2730 reported. 

A motion by Mr. Barton to order H.R. 2730 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 has not held oversight or legislative hearings on this legislation. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goal of H.R. 2730 is to promote and facilitate joint ventures 

between the United States and Israel concerning renewable energy, 

alternative energy and energy efficiency. 


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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. 2730, the 

United States-Israel Energy Cooperation Act, would result in no 

new or increased budget authority, entitlement authority, or tax 

expenditures or revenues. 

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: 

JUNE 22, 2006. 

Hon. JOE BARTON, 

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. 2730, the United StatesIsrael Energy Cooperation Act. 

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

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

Sincerely, 

DONALD B. MARRON, 

Acting Director. 

Enclosure. 

H.R. 2730—United States-Israel Energy Cooperation Act 

Summary: H.R. 2730 would authorize appropriations for grants 

to support cooperative efforts by nonfederal U.S. and Israeli entities to research, develop, and commercialize alternative and renewable energy sources. Assuming appropriation of the specified 

amounts, CBO estimates that implementing H.R. 2730 would cost 

$5 million in 2007 and $75 million over the 2007–2011 period. Enacting the bill would not affect direct spending or revenues. 

H.R. 2730 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

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

governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2730 is shown in the following table. The costs 

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

By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level .................................................................................................. 20 20 20 20 20 


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By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 

Estimated Outlays ................................................................................................... 5 10 20 20 20 

Basis of estimate: H.R. 2730 would authorize the appropriation 

of $20 million a year over the 2006–2012 period for the Department 

of Energy (DOE) to provide grants to support cooperative efforts by 

nonfederal U.S. and Israeli entities to research, develop, and commercialize alternative and renewable energy sources. The bill 

would authorize DOE to establish an advisory board to carry out 

the proposed program in consultation with existing organizations 

that support similar cooperative work between U.S. and Israeli 

businesses, academic institutions, and researchers. 

For this estimate, CBO assumes that H.R. 2730 will be enacted 

near the start of fiscal year 2007 and that the authorized amounts 

will be appropriated for each year. Based on information from DOE 

regarding historical spending of similar programs, CBO estimates 

that implementing H.R. 2730 would cost $5 million in 2007 and 

$75 million over the 2007–2011 period, with additional spending 

occurring in later years. 

Intergovernmental and private-sector impact: H.R. 2730 contains 

no intergovernmental or private-sector mandates as defined in 

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

tribal governments. 

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

State, Local, and Tribal Governments: Lisa Ramirez-Branum; Impact on the Private Sector: Craig Cammarata. 

Estimate approved by: Peter H. Fontaine, 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. 

ADVISORY COMMITTEE STATEMENT

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

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

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

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in Article I, section 8, clause 

3, which grants Congress the power to regulate commerce with foreign nations, among the several States, and with the Indian tribes. 

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. 


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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 provides that the short title of the bill is the ‘‘United 

States-Israel Energy Cooperation Act.’’ 

Section 2. Findings 

Section 2 provides the findings of Congress supporting the Act. 

Section 3. Grant program 

Section 3 establishes the framework for the grant program within the Department of Energy (DOE). Specifically, it directs the Secretary of Energy (Secretary), to consult with the United StatesIsrael Binational Industrial Research and Development Foundation 

(BIRD) and the United States-Israel Binational Science Foundation 

(BSF) on the development of the program, the application process, 

the determination of entities eligible to receive grants and the 

amount of the grants. Section 3(d) provides the Secretary with the 

discretion to seek recoupment of grants from grant recipients 

where the project has led to a product or process which is marketed 

or used. Section 3 also authorizes the Secretary to accept private 

funds to carry out the purposes of the Act. Finally, each grant recipient must submit a report to the Secretary within 180 days of 

receiving the grant. 

Section 4. International Energy Advisory Board 

Section 4 establishes an International Energy Advisory Board 

within DOE to advise the Secretary on criteria for recipients of the 

grants and the amounts of the grants. The Board is to be composed 

of two members from the United States and two members from 

Israel. The Board members are not paid, except for travel expenses 

and per diem. 

Section 5. Definitions 

Section 5 provides definitions of terms used in the Act. 

Section 6. Termination 

Section 6 provides that the grant program and the Advisory 

Board established under the Act terminate seven years after enactment of the Act. 

Section 7. Authorization of Appropriations 

Section 7 authorizes $20 million per year for fiscal years 2006 

through 2012. 

Section 8. Constitutional Authority 

Section 8 provides the Constitutional authority for the Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

This legislation does not amend any existing Federal statute. 


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